Belgium: Burger King vs. Belgium: King Philippe Not Happy About Fast Food Ad Campaign - by Lucy Westcott

Who is the real king of Belgium

It's just typical. You wait your whole life to be king, only to be upstaged by an American fast food chain known for, among other things, cramming macaroni and cheese inside Cheetos-crusted breading.

As far as monarchies go, Belgium’s current royal family keeps a fairly low profile. That was until Burger King launched an interactive advertising campaign ahead of the opening of its first Belgium location, which lets people vote for the country’s “real” king.

If you visit WhoIsTheKing.be, you’re greeted with the words: "Two Kings. One crown. Who will rule? Vote now... " Burger King lets you vote for either, well, Burger King or Belgium’s King Philippe. The website then invites you to return on June 19, when the true “king” of Belgium will be coronated.

Voting for for 57-year-old Philippe isn't easy. After casting your ballot, you’re asked several times if you’re sure and reminded that Philippe “won’t cook you fries.” (Maybe he will?) The chain even has posters to download, stating: “Vote With Your Stomach;” “Belgian People, Choose A King Who Will Make You Fries;” and “Philippe, Another King Arrives in Belgium.”

Perhaps the ad campaign hit a bit too close to home: In 1950, Belgium held a referendum over whether to abolish the monarchy and let Leopold III, Philippe’s grandfather, resume royal duties after World War II.

It's safe to say that King Philippe is not amused. Representatives for the king asked Burger King about the campaign, Reuters reports.

"We told them that we were not happy with them using an image of the king in their campaign," Pierre-Emmanuel De Bauw, palace spokesman, told Reuters. De Bauw added that the Philippe’s image can’t be used for commerce. He appears in the Burger King campaign as a cartoon, and the royal family was not asked if Philippe’s image could be used.

Burger Brands Belgium spokeswoman Shanna Van den Broeck said the company is “deliberating on how to proceed” with the campaign.

Read more: Burger King vs. Belgium: King Philippe Not Happy About Fast Food Ad Campaign

US Healthcare: 2,000 US Doctors Call for Universal Healthcare- by Olga Oksman

group of more than 2,000 physicians is calling for the establishment of a universal government-run health system in the US, in a paper in the American Journal of Public Health.
According to the proposal released Thursday, the Affordable Care Act did not go far enough in removing barriers to healthcare access. The physicians’ bold plan calls for implementing a single-payer system similar to Canada’s, called the National Health Program, that would guarantee all residents healthcare.
The new single-payer system would be funded mostly by existing US government funding. The physicians point out that the US government already pays for two-thirds of all healthcare spending in the US, and a single-payer system would cut down on administrative costs, so a transition to a single-payer system would not require significant additional spending.
“Our patients can’t afford care and don’t have access to the care they need, while the system is ever more wasteful, throwing away money on bureaucratic expenses and absurd prices from the drug companies,” said David Himmelstein, a professor in the CUNY School of Public Health at Hunter College and lecturer on medicine at Harvard Medical School.
Himmelstein, one of the authors of the plan, said the proposal is meant as a rallying cry for physicians and other healthcare professionals around the cause of a single-payer model. According to the paper, even with the passage of the Affordable Care Act many patients “face rising co-payments and deductibles that compromise access to care and leave them vulnerable to ruinous medical bills”. Despite the current high healthcare spending levels in the US, healthcare outcomes are worse than in comparable well-funded countries.
- See more at: http://www.occupy.com/article/us-doctors-call-universal-healthcare-abolish-insurance-companies#sthash.i2UiFMWw.2VUdz3RY.dpuf

group of more than 2,000 physicians is calling for the establishment of a universal government-run health system in the US, in a paper in the American Journal of Public Health.
According to the proposal released Thursday, the Affordable Care Act did not go far enough in removing barriers to healthcare access. The physicians’ bold plan calls for implementing a single-payer system similar to Canada’s, called the National Health Program, that would guarantee all residents healthcare.
The new single-payer system would be funded mostly by existing US government funding. The physicians point out that the US government already pays for two-thirds of all healthcare spending in the US, and a single-payer system would cut down on administrative costs, so a transition to a single-payer system would not require significant additional spending.
“Our patients can’t afford care and don’t have access to the care they need, while the system is ever more wasteful, throwing away money on bureaucratic expenses and absurd prices from the drug companies,” said David Himmelstein, a professor in the CUNY School of Public Health at Hunter College and lecturer on medicine at Harvard Medical School.
Himmelstein, one of the authors of the plan, said the proposal is meant as a rallying cry for physicians and other healthcare professionals around the cause of a single-payer model. According to the paper, even with the passage of the Affordable Care Act many patients “face rising co-payments and deductibles that compromise access to care and leave them vulnerable to ruinous medical bills”. Despite the current high healthcare spending levels in the US, healthcare outcomes are worse than in comparable well-funded countries.
- See more at: http://www.occupy.com/article/us-doctors-call-universal-healthcare-abolish-insurance-companies#sthash.i2UiFMWw.2VUdz3RY.dpuf

group of more than 2,000 physicians is calling for the establishment of a universal government-run health system in the US, in a paper in the American Journal of Public Health.
According to the proposal released Thursday, the Affordable Care Act did not go far enough in removing barriers to healthcare access. The physicians’ bold plan calls for implementing a single-payer system similar to Canada’s, called the National Health Program, that would guarantee all residents healthcare.
The new single-payer system would be funded mostly by existing US government funding. The physicians point out that the US government already pays for two-thirds of all healthcare spending in the US, and a single-payer system would cut down on administrative costs, so a transition to a single-payer system would not require significant additional spending.
“Our patients can’t afford care and don’t have access to the care they need, while the system is ever more wasteful, throwing away money on bureaucratic expenses and absurd prices from the drug companies,” said David Himmelstein, a professor in the CUNY School of Public Health at Hunter College and lecturer on medicine at Harvard Medical School.
Himmelstein, one of the authors of the plan, said the proposal is meant as a rallying cry for physicians and other healthcare professionals around the cause of a single-payer model. According to the paper, even with the passage of the Affordable Care Act many patients “face rising co-payments and deductibles that compromise access to care and leave them vulnerable to ruinous medical bills”. Despite the current high healthcare spending levels in the US, healthcare outcomes are worse than in comparable well-funded countries.
- See more at: http://www.occupy.com/article/us-doctors-call-universal-healthcare-abolish-insurance-companies#sthash.i2UiFMWw.2VUdz3RY.dpuf

A group of more than 2,000 physicians is calling for the establishment of a universal government-run health system in the US, in a paper in the American Journal of Public Health.

According to the proposal released Thursday, the Affordable Care Act did not go far enough in removing barriers to healthcare access. The physicians’ bold plan calls for implementing a single-payer system similar to Canada’s, called the National Health Program, that would guarantee all residents healthcare.

The new single-payer system would be funded mostly by existing US government funding. The physicians point out that the US government already pays for two-thirds of all healthcare spending in the US, and a single-payer system would cut down on administrative costs, so a transition to a single-payer system would not require significant additional spending.

“Our patients can’t afford care and don’t have access to the care they need, while the system is ever more wasteful, throwing away money on bureaucratic expenses and absurd prices from the drug companies,” said David Himmelstein, a professor in the CUNY School of Public Health at Hunter College and lecturer on medicine at Harvard Medical School.

Himmelstein, one of the authors of the plan, said the proposal is meant as a rallying cry for physicians and other healthcare professionals around the cause of a single-payer model. According to the paper, even with the passage of the Affordable Care Act many patients “face rising co-payments and deductibles that compromise access to care and leave them vulnerable to ruinous medical bills”. Despite the current high healthcare spending levels in the US, healthcare outcomes are worse than in comparable well-funded countries.

group of more than 2,000 physicians is calling for the establishment of a universal government-run health system in the US, in a paper in the American Journal of Public Health.
According to the proposal released Thursday, the Affordable Care Act did not go far enough in removing barriers to healthcare access. The physicians’ bold plan calls for implementing a single-payer system similar to Canada’s, called the National Health Program, that would guarantee all residents healthcare.
The new single-payer system would be funded mostly by existing US government funding. The physicians point out that the US government already pays for two-thirds of all healthcare spending in the US, and a single-payer system would cut down on administrative costs, so a transition to a single-payer system would not require significant additional spending.
“Our patients can’t afford care and don’t have access to the care they need, while the system is ever more wasteful, throwing away money on bureaucratic expenses and absurd prices from the drug companies,” said David Himmelstein, a professor in the CUNY School of Public Health at Hunter College and lecturer on medicine at Harvard Medical School.
Himmelstein, one of the authors of the plan, said the proposal is meant as a rallying cry for physicians and other healthcare professionals around the cause of a single-payer model. According to the paper, even with the passage of the Affordable Care Act many patients “face rising co-payments and deductibles that compromise access to care and leave them vulnerable to ruinous medical bills”. Despite the current high healthcare spending levels in the US, healthcare outcomes are worse than in comparable well-funded countries.
- See more at: http://www.occupy.com/article/us-doctors-call-universal-healthcare-abolish-insurance-companies#sthash.i2UiFMWw.2VUdz3RY.dpuf

Read more: 2,000 US Doctors Call for Universal Healthcare

Internet Communications: EU set to launch thousands of free WiFi hotspots

The EU's top bodies have agreed to provide free internet access in thousands of cities and towns across Europe. The "WiFi4EU" bid would see public places, like parks and libraries, install EU-funded hotspots by 2020.

The free internet scheme would apply to all member states, officials said on Monday, after the EU parliament, the EU Council, and the EU Commission reached an informal agreement on the plan.

The plan would focus on places where connectivity is limited and for people who have trouble accessing the Internet otherwise. The so-called WiFi4EU initiative is part of a larger EU overhaul on communication.

"WiFi4EU is a welcome first step, but much more needs to be done to achieve high-speed connectivity across the whole EU territory," said Andrus Ansip, the EU Commission's vice president on Digital Single Market, according to the German DPA news agency.

According to the deal, the EU is set to fund the project with some 120 million euros ($133.6 million) over the next two years. This money would be used to support installation of "state-of-the-art" WiFi equipment for at least 6,000 to 8,000 local communities, the EU Commission said on its website.

Read  more: EU set to launch thousands of free WiFi hotspots | News | DW | 30.05.2017

Brexit woes: Industrial output declines & trade deficit increases - by Joe Mellor

The deal PM May secures with the EU is increasingly important, but the anti-European rhetoric from the Government is making that less likely.

The vote for Macron, who is very pro-EU, in France might strengthen the EU’s resolve in the negotiations with the UK.

Industrial output dropped by 0.5% in March, sharper than the 0.3% fall that had been forecast.

This followed a 0.7% fall in February leading to a total growth of just 0.1% for the first quarters of the year according to the Office for National Statistics figures.

It was hoped that a fall in the pound might increase exports but there doesn’t appear to be much evidence this has happened. Instead there was a surge in imports, up £2.9bn over the month, with an increase in imports of goods from both EU and non-EU countries.

The broad services and goods deficit jumped to £4.9bn in March from £2.6bn in February.

Exports increased by just £600m. Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, said the March trade figures were “simply dreadful”.

The uncertainty over Brexit appears to be grinding the economy to a halt and a turnaround in the next quarter is essential, however that looks unlikely.

Read more Brexit woes: Industrial output declines & trade deficit increases - The London Economic

Serbia: EU "praises Serbia's economic growth, outlines challenges"

The EU has praised Serbia's economic growth, outlining challenges regarding structural reforms and competitiveness.

According to the Serbian Finance Ministry, acting head of the EU Delegation to Serbia Oskar Benedikt stressed that the conclusions "clearly recognize the important steps forward that Serbia made in achieving economic growth and macro-fiscal stability."

"Serbia needs to continue reforms in an ambitious way, particularly when tackling structural reforms, and creating a better business environment that will in turn increase growth and create new jobs," Benedikt said.

Read more: EU "praises Serbia's economic growth, outlines challenges" - Business & Economy - on B92.net

European Parliament Blocks EC Money Laundering Blacklist because they consider it incomplete- by Joe Kirwin

EU Money Laundering Controls

The European Commission will be forced to draw up a new blacklist of countries that facilitate money laundering after the European Parliament overwhelmingly rejected the latest effort that failed to consider countries that enable tax evasion.

EU lawmakers voted 392-80, with 207 abstentions, to reject the list that includes 11 countries, including Afghanistan, Bosnia and Herzegovina, Iraq, North Korea, Yemen and Syria, among others.

These are countries that the Paris-based Financial Action Task Force has signaled as destinations for laundering money or sources of terrorism financing.

Any country that ends up on the money laundering blacklist will face stricter controls when doing business in the EU, to ensure financial stability and general safety.

“We can not accept that the commission relies merely on an international body—the so-called Financial Action Task Force (FATF)—in drawing up a list of jurisdictions with strategic anti-money laundering and counter-terrorism financing,’' said Ana Gomes, a Portuguese parliamentarian from the Socialist and Democrat group, in a May 17 statement.

“How can we explain to our citizens that Panama for instance, which led the Panama Papers scandal, is not even on the list?” she asked.

Parliamentary opposition to the current blacklist also concerns the criteria used by the European Commission. EU lawmakers insist that the list should also include countries that facilitate tax evasion, which the Commission believes is beyond its mandate.

A key difference between the two EU institutions concerns the threshold for identifying beneficial owners of companies. EU member states insist it should be 25 percent or more, whereas the European Parliament wants 10 percent or more. Negotiations will continue in June.

The dispute over the AMLD blacklist is different from a tax haven blacklist that EU member states are due to finalize by the end of 2017.

Currently, EU member states are “screening” 92 countries as candidates for the tax haven blacklist. The U.S. is among the 92 countries.

Read more: European Parliament Blocks EC Money Laundering Blacklist | Bloomberg BNA

Italy: Paris Climate Agreement: Trump still not backing Paris climate agreement says Italy's PM

President Donald Trump still refuses to back the 2015 Paris agreement to fight climate change, blocking efforts by world leaders meeting in Sicily to get the new U.S. leader to endorse the treaty, Italy's prime minister said on Friday.

But there was agreement on other issues such as Syria, Libya and fighting terrorism, Paolo Gentiloni told reporters in Taormina, Italy, where the heads of the world's seven major industrialised economies (G7) are meeting.

"There is one open question, which is the U.S. position on the Paris climate accords... All others have confirmed their total agreement on the accord," Gentiloni said. "We are sure that after an internal reflection, the United States will also want to commit to it," he added.

The leaders of Italy, the U.S., Germany, Britain, France, Canada and Japan signed on Friday a statement to bolster efforts to fight terrorism, including a bid to remove extremist propaganda from the Internet, Gentiloni said.

"We showed our united commitment and our determination to continue and to strengthen our fight against terrorism," Gentiloni said after the leaders signed a document that also expressed solidarity with Britain after the suicide bomb attack in Manchester on Monday that killed 22.

Gentiloni said they had made progress on the issue of foreign trade, but added that the wording of the final communique still needed to be worked out. Trump has previously promoted a protectionist agenda that alarmed his G7 allies.

Read more: Trump still not backing Paris climate agreement - Italy's PM - World | The Star Online

EU--Belgium-NATO: Trump meets with EU officials and scolds world leaders at NATO ceremony in Brussels

President Trump criticized leaders at a dedication ceremony at the new NATO headquarters in Brussels, May 25, saying they need to increase financial contributions to combat "the threat of terrorism."

"America instead of haggling over money", say most European politicians," must not forget that Europe is on the front-line of the American defense in case of an attack from the Russians. That should be worth every cent the US invests into Europe's defense."

In his speech to NATO leaders, President Trump also said  NATO must focus on terrorism and that “nations owe massive amounts of money” on defense.

Thursday’s NATO meeting was scheduled to allow Trump and leaders of NATO states to take the measure of each other. The 27 other members had hoped to relieve anxiety that arose during Trump’s campaign, when he questioned why the United States was spending its own money to defend Europe, called NATO “obsolete” and ill-equipped to deal with terrorism, and threatened to withdraw if other members failed to pay their “fair share.”

Moreover, though the White House had sent recent signals that the United States would stay in NATO’s mutual defense pact, known as Article 5, Trump made no mention of it as he stood next a monument dedicated to the only time the article had been previously invoked: during the terror attacks on September 11, 2001.

Donald Trump did vow, however, to crack down on leaks that prompted Manchester police to withhold information from the United States about the investigation into this week’s bombing.

Earlier during the day Mr. Trump met with EU President Tusk and other EU officials. 

After the meeting at the EU headquarters in Brussels ended, Tusk, who presides over the European Council said:  "I am not 100% sure that we can say today ... that we have a common position, common opinion, about Russia," but Tusk added that both parties remain critical of Russia's military incursions into neighboring Ukraine.

Tusk also said "some issues remain open" with Trump, including climate change and trade policy.

EU members have long questioned Trump's warm comments toward Putin, who has backed many anti-EU candidates in elections throughout the continent. And countries such as France, Germany, and the United Kingdom have expressed concerns about similar Russian hacking and disinformation campaigns to undermine elections in their countries.

Trump's meeting with Tusk, who presides over the European Council, and Jean-Claude Juncker, president of the European Commission, preceded talks with leaders of the North Atlantic Treaty Organization.

The Trump Brussels stop came in the middle of Trump's first foreign trip as president, one that began with visits to Saudi Arabia, Israel, and Rome. Trump is spending nine days away from Washington, which is still reeling from a spate of recent revelations related to Trump's links to Russia.

Trump's first foreign trip as president came a week after the Justice Department appointed a special counsel to look into possible ties between Trump campaign associates and Russians who sought to influence the 2016 presidential campaign.

The U.S. intelligence community has accused Moscow of orchestrating a high-level campaign of cyberattacks, propaganda and fake news to try and influence the 2016 election, though the president and his aides have denied any collusion.
 

EU-Digest

NATO under pressure from Trump will symbolically join anti-′Islamic State′ Saudi backed coalition

NATO TO JOIN WITH SAUDI BACKED ISLAMIC COALITION

Several NATO sources on Wednesday said that the strategic military alliance would join the US-Saudi led coalition against the self-proclaimed "Islamic State" (IS) armed group.

The decision is expected to be formally announced on Thursday at the meeting of NATO leaders in Brussels, the sources said.

The leak was made public hours after NATO chief Jens Stoltenberg called on the alliance to do more to combat terrorism, following the suicide bomb attack at Manchester Arena that killed 22 people.

Diplomats said the decision comes under pressure from President Trump and is mainly political and symbolic, because all 28 NATO members already contribute to the coalition fighting to retake areas of Iraq and Syria from the extremist group. Some, like Germany, only taking part in support roles such as reconnaissance and logistics.

For America, the lessons of the European tragedy are there to be learned. There is only one solution to the problem of terrorism and it doesn’t involve going abroad in search of monsters to destroy.

The EU must withdraw all its troops from the Middle East – a possibility that doesn’t bear the economic consequences it once did, given the creation of new technologies that make domestic oil production and alternative energy far easier.

For the US the message is that spending billions of dollars defending and sustaining the Saudi monarchy and the Gulf states – some of the most repressive regimes in the world, is throwing money down the drain, and for what?

The interventionists( Republicans and Democrats alike) declare that America’s role as a “global leader” represents the defense of our values. But really, does a regime that beheads “infidels” represent American or European values? Indeed, there is basically no operative difference between the internal rule of the ISIS “caliphate” and the Saudi Kingdom. Yet we are obsessed with destroying the former and cuddling up to the latter.

It’s not too late for the Europeans, who were forced to sleep in a bed they did not make for themselves, to finally step out of that bed, and focus on cleaning-up the ISIS mess at home by themselves, with plans and strategies of their own. 

EU-Digest

France: Macron′s new environment chief: Greenwashing or green leading?

Nicolas Hulot, France's most famous environmental activist, is known for making waves. As a famous television personality, he has used his television show as a platform to attack pesticides, nuclear power, and even capitalism as a whole. "Our model is not sustainable," he has declared.

Last week, France's new president Emmanuel Macron nominated Hulot, widely known for his nature documentaries, to be the country's next environment minister. It was a surprising name in a list of cabinet nominations that were mostly center-right and market-friendly.

Hulot, who supported Macron's far-left rival Jean-Luc Melenchon, has been a noted opponent of free trade deals - something Macron champions. Hulot ran unsuccessfully as a Green political candidate in 2012.

He stands in particular contrast to Macron's nominee to be prime minister, the center-right Edouard Philippe. Philippe worked as a lobbyist for French nuclear energy group Areva from 2007 to 2010.

Now, companies are scrambling to figure out whether the appointment could mean an increase in environmental regulation - and a drastic phaseout of nuclear power - or whether it is merely a political gesture.

Read more: Macron′s new environment chief: Greenwashing or green leading? | DW Environment | DW | 23.05.2017

Alternative Energy: Germany approves onshore wind farms expansion

German authorities have approved hundreds of megawatts in additional capacity at onshore wind farms. The price at which it awarded the projects was below expectations, pointing to stronger competition.

The German Economy Ministry announced Friday it had approved 807 megawatts of capacity at onshore wind parks.

The projects were granted at an average price requiring a subsidy of 5.71 eurocents ($0.89) per kilowatt hour of power, marking a price reduction of 20 percent on previous deals.

Approval procedures had been closely watched by turbine manufacturers, project developers and utilities after recent offshore wind farm auctions included bids for zero-subsidy deals for the middle of the next decade as the industry is requested to cut costs.

Friday's auction was the first for onshore wind projects under the latest changes to the renewable feed-in tariff law in Germany accompanying the nation's transition from fossil fuels to green energy excluding nuclear.

Read more:  Germany approves onshore wind farms expansion | Business | DW | 19.05.2017

EU: MEPs welcome unity on Brexit and call for reform of the EU

MEPs welcomed the unity of the 27 Member States and the EU institutions with regard to Brexit and also called for a reform of the EU to benefit all its citizens.

The President of the European Council Donald Tusk presented to MEPs the Guidelines for Brexit negotiations agreed by the Member States at the summit on 29 April. He welcomed the alignment with the ‘red lines’ set by the European Parliament. The detailed negotiating mandate will be presented for adoption at a  Council meeting on 22nd May, pointed out the President of the Commission Jean-Claude Juncker.

In line with negotiator Michel Barnier, most MEPs emphasised the unity between the EU institutions and the 27 Member States, who are determined to act together to reach a balanced agreement with the United Kingdom.

The debated focused on the basis for future negotiations, as recalled by Michel Barnier:

• no negotiations on the future relationship between the EU and the United Kingdom can take place before “tangible progress” on the exit agreement is made,
• guaranteeing the rights of European citizens affected by the UK’s decision to leave the EU,
• the Northern Ireland peace process must be upheld (including the absence of physical border between Ireland and Northern Ireland),
• the United Kingdom must respect all the financial commitments made as a Member State.
   
  

  MEPs underlined the importance of unity and trust so that, in parallel to negotiations being carried out for an ‘orderly withdrawal’ of the UK, the reform of the Union can take place to rapidly respond to citizens’ concerns and make the benefits of European integration much more visible. 

  Read more: MEPs welcome unity on Brexit and call for reform of the EU | News | European Parliament

EU Trading Practises: Trust in EU trade policy boosted by court decision – by Christofer Fjellner

European trade policy has been in limbo for a couple of years. The big question everyone has been asking is whether modern free trade agreements can be ratified by the European Union at all. If a modern agreement must be ratified by national parliaments, no one knows if it will finally be ratified at all.

On Tuesday (16 May), the European Court of Justice (ECJ) ruled that the proposed EU-Singapore free trade agreement must indeed be ratified by all national parliaments but it clearly draws the line of what is exclusive EU competence and what falls to be ratified by member states.

It might sound like bad news but it actually can lead to a good way forward. So far, all major EU trade agreements, such as the ones with Canada and Korea, have been mixed. Now we know the lay of the land.

In essence, the court says that the EU has exclusive competence to negotiate on trade in services, intellectual property rights, provisions none labor and environmental standards and competition policy – all areas member states have previously been hesitant to leave to EU trade nnegotiators.

Read more: Trust in EU trade policy boosted by court decision – EURACTIV.com

European Aircraft Industry: How Airbus Designed Its Flying Car

How Airbus dreamed=up the wild design for it flying car  merged with totally-not-kidding plans to deliver vehicles worthy of George Jetson. And so, the idea of flying where you now drive finagled its way into the “umm, so this could really be real” column.

So far, this wannabe industry has attracted mostly brash startups, with Uber cheering them on, ready to help deploy whatever tech they can make fly. But one member of the bandwagon offers the gravitas that comes with nearly 50 years of building real life airplanes. Airbus is in the flying car game, and it’s ready to embrace a new way to take off.

“It seems like the future has gotten here faster than we all expected,” says Zach Lovering, the head of Vahana, Airbus’ personal, autonomous, electric, lust-worthy, flying machine.

 “There clearly is a convergence of technology that has happened to make this a reality for all of us.”

He’s talking about the lightweight materials, cheaper and better batteries, and improved avionics software that make aviation experts think electric planes that take off and land vertically could be commercially viable in just five years.

Read more" How Airbus Designed Its Flying Car, Vahana | WIRED

Saudi Arabia: Trump's plan to create an Arab NATO with a collection of dictators, tyrants and thugs is bound to fail - by Robert Fisk

"The Savior ? "

Counter Punch reports that Donald Trump set off on Friday to create the fantasy of an Arab Nato. There will be dictators aplenty to greet him in Riyadh, corrupt autocrats and thugs and torturers and head choppers. There will be at least one zombie president – the comatose, undead Abdelaziz Bouteflika of Algeria who neither speaks nor, apparently, hears any more – and, of course, one totally insane president, Donald Trump. The aim, however, is simple: to prepare the Sunni Muslims of the Middle East for war against the Shia Muslims. With help from Israel, of course.

The incubator of terrorism

Even for those used to the insanity of Arab leadership – not to mention those Westerners who have still to grasp that the US President is himself completely off his rocker – the Arab-Muslim (Sunni) summit in Saudi Arabia is almost beyond comprehension. From Pakistan and Jordan and Turkey and Egypt and Morocco and 42 other minareted capitals, they are to come so that the effete and ambitious Saudis can lead their Islamic crusade against “terrorism” and Shiism. The fact that most of the Middle East’s “terrorism” – Isis and al-Qaeda, aka the Nusrah Front – have their fountainhead in the very nation to which Trump is traveling, must and will be ignored. Never before in Middle Eastern history has such a “kumidia alakhta” – quite literally “comedy of errors” in Arabic – been staged.

On top of all this, they have to listen to Trump’s ravings on peace and Islamic “extremism”, surely the most preposterous speech to be uttered by a US president since he is going to have to pretend that Iran is extremist – when it is Saudi Arabia’s Wahhabi Isis clones who are destroying Islam’s reputation throughout the world. All this while he is fostering war.

For Saudi Deputy Crown Prince Mohammad bin Salman (henceforth MbS) wants to lead his Sunni tribes – plus Iraq if possible, which is why Shia Prime Minister Abadi has been invited from Baghdad – against the serpent of “terrorist” Shia Iran, the dark (Shia) “terrorist” Alawite regime of Bashar al-Assad, the “terrorist” Shia Lebanese Hezbollah and the aggressive “terrorist” Shia Houthis of Yemen. As for the Gulf states’ own Shia minorities and other recalcitrants, well, off with their heads.

Much has been made (rightly) of MbS’s threat to ensure that the battle is “in Iran and not in Saudi Arabia”. But, typically, few bothered to listen to Iran’s ferocious reply to the Saudi threat. It came promptly from the Iranian defence minister, Hossein Dehghan. “We warn them [the Saudis] against doing anything ignorant,” he said, “but if they do something ignorant, we will leave nowhere untouched apart from Mecca and Medina.” In other words, it’s time to start building air raid shelters in Riyadh, Jeddah, Dhahran, Aramco headquarters and all those other locations dear to American hearts.

 Indeed, it’s difficult not to recall an almost identical Sunni hubris – almost four decades ago – to that of MbS today. The latter boasts of his country’s wealth and his intention to diversify, enrich and broaden its economic base. In 1980, Saddam was determined to do the same. He used Iraq’s oil wealth to cover the country in super-highways, modern technology, state-of-the-art healthcare and hospitals and modern communications. Then he kicked off his “lightning war” with Iran.

It impoverished his oil-rich nation, humiliated him in the eyes of his fellow Arabs – who had to cough up the cash for his disastrous eight-year adventure – led to Saddam’s invasion of Kuwait, sanctions and the ultimate Anglo-US invasion of 2003 and, for Saddam, the hangman’s noose.

Yet this leaves out the Syrian dimension. Sharmine Narwani, a former senior associate of St Antony’s College – and an antidote for all those sickened by the mountebank think-tank “experts” of Washington – pointed out this week that US support for Kurdish forces fighting under the dishonest label of “Syrian Democratic Forces” are, by advancing on Raqqa, helping to cut Syria off from Iraq. And that Kurdish forces are now reported as “retaking” Christian or Muslim Arab towns in the Nineveh province of Iraq, which were never Kurdish in the first place.

Kurds now regard Qamishleh, and Hassakeh province in Syria as part of “Kurdistan”, although they represent a minority in many of these areas. Thus US support for these Kurdish groups – to the fury of Sultan Erdogan and the few Turkish generals still loyal to him – is helping to both divide Syria and divide Iraq.

This cannot and will not last. Not just because the Kurds are born to be betrayed – and will be betrayed by the Americans even if the present maniac-in-charge is impeached, just as they were betrayed to Saddam in the days of Kissinger – but because Turkey’s importance (with or without its own demented leader) will always outweigh Kurdish claims to statehood. Both are Sunnis, and therefore “safe” allies until one of them – inevitably the Kurds – must be abandoned.

Meanwhile, you can forget justice, civil rights, sickness and death. Cholera has quite a grip on Yemen now, courtesy of the criminal bombing attacks of the Saudis – ably assisted by their American allies long before Trump took over – and scarcely any of the Muslim leaders whom Trump meets in Riyadh do not have torturers at work back home to ensure that some of their citizens wish they had never been born. It will be a relief for the fruitcake president to leave Israel for the Vatican, albeit given only a brief visitation to – and short shrift by what the Catholics believe – is a real peacemaker.

That only leaves one nation out of the loop of this glorious charivari: Russia. But be sure Vladimir Putin comprehends all too well what is going on in Riyadh. He will watch the Arab Nato fall apart. His foreign minister Lavrov understands Syria and Iran better than the feckless Tillerson. And his security officers are deep inside Syria. Besides, if he needs any more intelligence information, he has only to ask Trump.

The BBC reports that In stark contrast to the upbeat statements of Saudi officials concerning US President Donald Trump's visit to the kingdom on 20 May, many Arab Twitter users have taken a more sceptical view of the trip.

At one point on Saturday, though, the term "Trump's daughter" in Arabic was the top-trending topic worldwide on Twitter.

Many have taken to satire, posting images referencing negative comments by Mr Trump about Islam and Muslims. Their reaction comes ahead of his much-anticipated speech at the Arab Islamic American Summit in Riyadh on Sunday.

EU-Digest

EU trade balance in services down for a third consecutive year

According to preliminary data for 2016, the European Union's (EU) exports of services to the rest of the world decreased by 1.4% between 2015 and 2016, from €831.5 billion to €819.8 bn, while imports grew slightly (+0.6%) from €685.7 bn to €689.7 bn. As a consequence, the EU trade surplus in services, which had steadily increased between 2010 and 2013, has decreased for the third consecutive year in 2016 to €130.2 bn.

Read more: EU trade balance in services down for a third consecutive year - Product - Eurostat

EU After Brexit: Like 20 Fewer Economies

1. Much of the international discussion about the ramifications of Brexit has focused on how leaving the European Union will change Britain.
2. However, there will also be significant changes for the EU.
3. The EU’s economy will shrink by close to its 20 smallest national economies with the departure of the UK.
4. The nominal GDP of the European Union in 2015 was $16.3 trillion, according to the World Bank.
5. The United Kingdom accounted for $2.9 trillion – or 18% — of that total.
6. The UK’s GDP in 2015 was about equal to the $2.9 trillion combined GDP of the 20 smallest EU member economies – from Malta to Belgium.
7. The economy of the EU without the UK totals $13.4 trillion (as of 2015).
8. By itself, the UK economy is somewhat larger than France’s economy ($2.4 trillion).
9. France will become the second-largest after the UK’s exit from the EU.
10. Germany ($3.4 trillion) will remain the largest economy in the EU.

Sources: The Globalist Research Center, World Bank

From: EU After Brexit: Like 20 Fewer Economies - The Globalist

EU - Spring 2017 Economic Forecast - by the European Commission

EU entering its 5th year of economic recovery

The European economy has entered its fifth year of recovery, which is now reaching all EU Member States. This is expected to continue at a largely steady pace this year and next.

In its Spring Forecast released today, the European Commission expects euro area GDP growth of 1.7% in 2017 and 1.8% in 2018 (1.6% and 1.8% in the Winter Forecast). GDP growth in the EU as a whole is expected to remain constant at 1.9% in both years (1.8% in both years in the Winter Forecast).

Private consumption, the main growth driver in recent years, expanded at its fastest pace in 10 years in 2016 but is set to moderate this year as inflation partly erodes gains in the purchasing power of households. As inflation is expected to ease next year, private consumption should pick up again slightly. Investment is expected to expand fairly steadily but remains hampered by the modest growth outlook and the need to continue deleveraging in some sectors. A number of factors support a gradual pick-up, such as rising capacity utilisation rates, corporate profitability and attractive financing conditions, also through the Investment Plan for Europe.

Unemployment continues its downward trend, but it remains high in many countries. In the euro area, it is expected to fall to 9.4% in 2017 and 8.9% in 2018, its lowest level since the start of 2009. This is thanks to rising domestic demand, structural reforms and other government policies in certain countries which encourage robust job creation. The trend in the EU as a whole is expected to be similar, with unemployment forecast to fall to 8.0% in 2017 and 7.7% in 2018, the lowest since late 2008.

Both the general government deficit-to-GDP ratio and the gross debt-to-GDP ratio are expected to fall in 2017 and 2018, in both the euro area and the EU. Lower interest payments and public sector wage moderation should ensure that deficits continue to decline, albeit at a slower pace than in recent years. In the euro area, the government deficit to-GDP ratio is forecast to decline from 1.5% of GDP in 2016 to 1.4% in 2017 and 1.3% in 2018, while in the EU the ratio is expected to fall from 1.7% in 2016 to 1.6% in 2017 and 1.5% in 2018. The debt-to-GDP ratio of the euro area is forecast to fall from 91.3% in 2016 to 90.3% in 2017 and 89.0% in 2018, while the ratio in the EU as a whole is forecast to fall from 85.1% in 2016 to 84.8% in 2017 and 83.6% in 2018.

Read more: Spring 2017 Economic Forecast | European Commission

Turkey: EU warns Turkey after it violates Greek airspace 141 times in one day – by Sarantis Michalopoulos

T

EU Euro-fighters  ready to chase Turkish intruders

Turkish aeroplanes and helicopters illegally entered Greece’s airspace 141 times yesterday (15 May), the Hellenic National Defence General Staff reported.

According to Greek press reports, 20 Turkish F-16, 5 CN-235 maritime surveillance aircraft and 19 helicopters entered the Athens flight information region (FIR) without submitting a flight plan.

In all cases, Turkish aircraft were identified and intercepted by Greek fighters, while in nine cases the interception process resulted in near combat situations.

In addition, two Turkish missile boats entered Greek territorial waters off the southeast Aegean island of Agathonisi.

The vessels, which were taking part in a maritime exercise code-named Denizkurdu (Seawolf), stayed in Greek territorial waters for about 20 minutes. As Kathimerini journal reported, last month Agathonisi was described as a “Turkish island” by Turkey’s Minister of European Union Affairs Omer Celik.

While the EU and the international community recognise the sovereignty of Greece over the Greek Aegean islands, Turkey has a list of issues regarding the delimitation of territorial waters, national airspace, exclusive zones, etc. Ankara also claims “grey zones” of undetermined sovereignty over a number of small islets, most notably the islets of Imia/Kardak.

The serious incidents occurred just a few hours after the meeting of Greek premier Alexis Tsipras with Turkish President Tayyip Erdoğan in Beijing.

The Greek Ministry of Foreign Affairs issued a strong communique saying that the incident “constitutes a flagrant violation of international law”.

Read more: EU warns Turkey after it violates Greek airspace 141 times in one day – EURACTIV.com

USA-Turkey relations: Why Trump will likely leave Erdogan empty-handed - by Nil Köksal

The conversations so far have been cordial, diplomatic. There's so much on the line.

But just days before U.S. President Donald Trump was set to meet Turkish counterpart Recep Tayyip Erdogan at the White House, Washington delivered a welcome basket loaded with a land mine.

Actual weapons and who gets them are the issue. Knowing that one of Turkey's biggest demands of the U.S. is not to arm certain Kurdish fighters in Syria, the White House announced last week it would be doing just that.

• U.S. to arm Kurdish fighters in Syria
• Rex Tillerson, Turkish leaders struggle to resolve Kurdish dispute

The decision dropped just as a high-level delegation, including the head of Turkey's Armed Forces, the intelligence service and Erdogan's chief adviser, was in Washington for meetings ahead of the main event Tuesday.

"It will be a tough meeting," said Prof. Huseyin Bagci of Middle East Technical University in Ankara.

Read more: Why Trump will likely leave Erdogan empty-handed - World - CBC News

Brexit: The UK and the EU are on collision course for a major clash over the structure of Brexit negotiations, warns David Davis-by T.N.Dunn

The fantasy is over Britain

The British Brexit Secretary says the Government and Brussels are set for an almighty row over the details of a deal on citizens' rights

We will reject any attempt by the EU to keep euro judges in charge of the rights of its citizens living in the UK after Brexit, David Davis has declared.

The remaining 27 leaders have made the continuation of the European Court of Justice’s remit a term for any deal with Britain.

But the Brexit Secretary ruled that out, vowing: “Well we’ll have an argument about that”.

Mr Davis told ITV’s Peston on Sunday: “The simple truth is we’re leaving".

“We are going to be outside the reach of the European court, we are going to be outside the reach of all of the law making capabilities”.

Offering an olive branch, the Cabinet minister leading the intense talks instead said the UK would “freeze” EU citizens’ entitlements as they are today.

Workers from other European countries would keep getting benefits and pensions from Britain if they’re resident, as well as free healthcare.

But they would lose ‘citizenship’ rights, such as being able to vote in general elections.

Note EU-Digest: Looks like Britain wants "their cake and eat it also". That is not the way "the cookie crumbles",  Mr. David Davies.

Read more: The UK and the EU are on collision course for a major clash over the structure of Brexit negotiations, warns David

Trade Agreement: US and China announce deal aimed at reducing trade gap

Beijing and Washington on Friday unveiled a trade deal aimed at reducing the US trade deficit with China, as the Kushner family’s real estate company abandoned a business programme targeting Chinese investors.

The trade deal would give US beef, natural gas and certain financial services access to China's massive market of 1.37 billion people. In exchange, the US would lift barriers to Chinese cooked chicken products.

The deal seems to be part of warming trade relations between the US and China. Despite President Donald Trump’s aggressive rhetoric against China throughout the US presidential campaign, Trump and Chinese President Xi Jinping launched a 100-day action plan on economic cooperation last month.

Read more: US and China announce deal aimed at reducing trade gap -

US Economy: Ray Dalio says the long term economic picture 'looks scary' - Evelyn Cheng

Ray Dalio, founder of Bridgewater Associates, is feeling OK about markets and the economy right now, but he is getting really worried about the future.

"Big picture, the near term looks good and the longer term looks scary," Dalio wrote in a LinkedIn blog post Friday.

"We fear that whatever the magnitude of the downturn that eventually comes, whenever it eventually comes, it will likely produce much greater social and political conflict than currently exists," he said.

Bridgewater manages $150 billion.

Dalio listed four reasons for his pessimism:

For the full report click here: Ray Dalio says the long term economic picture 'looks scary'

Germany - G20 meeting: Merkel Signals She’ll Snub Trump’s Demand to Spend More on Defense - by Arne Delfs

Chancellor Angela Merkel signaled that Germany will refuse U.S. demands to bring forward planned increases in defense spending, saying that extra outlays are already being made.

President Donald Trump, who has said that Germany “owes vast sums of money” to NATO, is due to travel to Europe later this month for a meeting in Brussels of North Atlantic Treaty Organization leaders, including the German chancellor.

Merkel, speaking in Berlin on Thursday after talks with NATO Secretary General Jens Stoltenberg on the goals of the May 25 meeting, said the German government was committed to raising spending to 2 percent of gross domestic product by 2024 “and is working on it.”

“In past years we have shown that we have made increases, so I see no need for further provisions on May 25,” the chancellor said.

Germany increased its defense budget by 8 percent this year to about 37 billion euros ($40.1 billion), though it still falls far short of the 2 percent of GDP target. Merkel also argues that development aid should be taken into account as a security component.

In a tweet sent a day after hosting Merkel at the White House, Trump said the U.S. “must be paid more for the powerful, and very expensive, defense it provides to Germany!”

Note EU-Digest: this is another indication that Europe needs its own defense force with a different mandate and budget than that of the NATO. Europe should also not get involved in sending additional European Troops (as part of NATO) into the Afganistan "swamp", and a war there that has now been going on for 15 years - as is presently being discussed in the Pentagon.

Read more: Merkel Signals She’ll Snub Trump’s Demand to Spend More on Defense - Bloomberg

Climate change: China vows to defend Paris agreement

Chinese President Xi Jinping has vowed to protect the landmark Paris agreement, which aims to curb climate change and fossil fuel emissions. He made the promise in a phone call with incoming French President Emmanuel Macron, the Chinese foreign ministry said in a statement.

US President Donald Trump is still deciding whether to withdraw from the accord - an election campaign promise.

Climate experts worry such a move would throw the agreement into chaos.

Read more: Climate change: China vows to defend Paris agreement - BBC News

Climate change: China vows to defend Paris agreement

Chinese President Xi Jinping has vowed to protect the landmark Paris agreement, which aims to curb climate change and fossil fuel emissions. He made the promise in a phone call with incoming French President Emmanuel Macron, the Chinese foreign ministry said in a statement.

US President Donald Trump is still deciding whether to withdraw from the accord - an election campaign promise.

Climate experts worry such a move would throw the agreement into chaos.

Read more: Climate change: China vows to defend Paris agreement - BBC News

EU: Post-Trump, post-Brexit, the EU may end up more unified than ever - by Joshua Keating

EU- United we stand - divided we fall

As France’s next president, Emmanuel Macron, took the stage outside the Louvre on Sunday night to the strains of Beethoven’s “Ode To Joy,” the European Union anthem, it was easy to view the centrist, pro-EU technocrat’s victory over the right-wing populist Marine Le Pen as an endorsement by the French public of the European project.

This would be a little misleading. Between Le Pen, François Fillon, and Jean-Luc Mélenchon—the second-, third-, and fourth-place candidates in the first round of the election—and various fringe parties, more than two-thirds of French voters went for euro-skeptic candidates. Those candidates’ supporters went for Macron in the second round less because of enthusiasm for him than the fact that most of them, though not as many as in previous elections, considered Le Pen unacceptable.

The contradiction at the heart of the EU—that a project dedicated to the spread and promotion of democracy continues despite the will of most European—that a project dedicated to the spread and promotion of democracy continues despite the will of most Europeans—has not gone away.

The project persists in large part because, as the French election demonstrated, its opponents can’t agree on what an alternative should look like. And while it’s still early days, the global political events of the past year may have unexpectedly strengthened the EU by giving it something to stand against.

A few months ago, the EU looked on the verge of collapse. The Greek financial crisis and a massive influx of migrants had opened up fissures between members. Then came Brexit, which European leaders warned could set off a race to the exits.

Then came the election of Donald Trump, a president who threatened to abandon the traditional U.S. support for European integration and publicly attacked German Chancellor Angela Merkel while praising Vladimir Putin. All the while, populist, nationalist parties, many with murky links to the Kremlin, were surging in the polls in a number of countries.

But in 2017, the wave has crested a bit. In the Netherlands’ March election, far-right candidate Geert Wilders had a disappointing finish. A pro-European center-right party won parliamentary elections in Bulgaria, and a pro-European president won in EU applicant state Serbia. Merkel appears in good shape ahead for her re-election bid in September, and even if her center-left opponent, Martin Schulz, could squeak out a victory, he’s also a strong backer of European integration.

Brexit will undoubtedly reduce the global economic clout of the union, but it could also make the EU politically stronger by removing one of the staunchest opponents of European integration. For instance, the EU is moving to coordinate defense budgets and military command structures, a process Britain often opposed, viewing it as a back-door means of creating a transnational European army. European governments have also been able to agree on a common negotiating stance over Britain’s exit remarkably quickly. Feeling a little more stable after Macron’s victory, European leaders may be more confident in enforcing tough terms on Britain to dissuade any other wayward members from getting similar ideas.

As for Trump, in practice he has turned out to be neither as anti-Europe or as pro-Russian as Brussels feared. He’s reportedly warming to the idea of striking a trade agreement with Europe rather than the bilateral deals that he, and particularly nationalist adviser Steve Bannon, said he preferred during the campaign.

Trump has had an impact on European politics by providing establishment politicians with a counterexample to run against. Trump and Le Pen have each praised each other, and she even paid a visit to Trump Tower—though not to Trump himself—in January. She even went as far as to describe them as part of a common global movement. But 82 percent of French voters have a negative view of Trump, according to a poll released last week, so it wasn’t exactly surprising to see anti–Le Pen ads warning French voters not to “Trump themselves” or to see Macron touting the support of Barack Obama.

A Trump-led movement is not one the Frenchor any of the Europeans particularly want to be part of.

The European public may still be suspicious of Europe, and European leaders—who are viewed as distant and undemocratic—still need to do a much better job of articulating a positive vision of what they’re for. But thanks to Brexit and Trump, it’s now at least easy for those leaders to articulate what they’re against. 

Read more: Post-Trump, post-Brexit, the EU may end up more unified than ever.

French Presidential Elections: Emmanuel Macron elected French president with a landslide 65.5% of the vote

France's newly elected President: Emmanuel Macron

With polls now closed across France, centrist Emmanuel Macron has been elected French President with an estimated 65.5% of the vote, with his rival, far-right Marine Le Pen, taking 34.5%.

• Macron, 39, has become the youngest president of France's Fifth Republic.France's 47 million 
• voters chose between radically different platforms: the free-trade, pro-EU policies of Macron's
• En Marche! (Forward!) party, and the protectionist nationalism of Le Pen's National Front.
• Voting stations opened at 8am (6am GMT) in mainland France Sunday, and most closed at Frenchj7pm, while those in larger cities closed at 8pm. Voters overseas began voting SatOfficial turnout figures have been lower than in the April 23 first round. The noon turnout was 28.2%, slightly less than the 28.5% in the first round. At 5pm, the turnout was 65.3%, lower than the 69.4% at the same time on April 23.
• It has been a historic election by several measures: both candidates were from parties outside the political mainstream. It follows an unprecedented campaign marked by scandal and repeated surprises.
• French law prohibited French media from quoting the presidential candidates or their supporters until the polls closes at 8pm Sunday.

Macron has reportedly told Germany’s Angela Merkel on the phone that he will soon travel to Berlin for a face-to-face meeting to get Europe moving again.

Spanish PM Mariano Rajoy tweets: “Congratulations to @EmmanuelMacron, France’s new president. France and Spain should work together for a more stable, prosper and united Europe.”

President Trump used Twitter Sunday to extend a hand to France's new president-elect, Emmanuel Macron.  'Congratulations to Emmanuel Macron on his big win today as the next President of France. I look very much forward to working with him!' Trump wrote.

The former deputy national security adviser to President Obama believes the defeat of Marine Le Pen, and victory for Emmanuel Macron, in the French presidential election shows the end of a wave of nationalistic populism.

The European commission president, Jean-Claude Juncker, tweeted his congratulations, saying: “Happy that the French have chosen a European future. Together for a stronger and fairer Europe.”
J
uncker also sent a letter to Macron only 15 minutes after the exit poll result was published, in which he told the new French president that he welcomed “the ideas that you have advocated, a strong Europe, and progressive, that protects all its citizens”.

A spokesman for the German chancellor Angela Merkel was also quick to hail the result as a “victory for a strong and united Europe”. “Congratulations, @EmmanuelMacron. Your victory is a victory for a strong and united Europe and for French-German friendship,” tweeted Steffen Seibert in French and German.

Merkel’s chief of staff, Peter Altmaier, wrote: “Vive la France, Vive L’Europe!”, adding that it was a “a strong signal for our common values.” Separately, the German foreign minister Sigmar Gabriel celebrated Macron’s win for keeping France “at the heart of Europe”.

“Liberté, Egalité, Fraternité! France chose that today. The great nation was, is, and remains in the middle and at the heart of Europe,” wrote Gabriel on Twitter, using France’s national slogan.

European council president Donald Tusk also offered his congratulations, saying the French had chosen “liberty, equality and fraternity” and “said no to the tyranny of fake news”.

EU-Digest

The Paris Climate Accord: Trump Says ‘No’ To A Global Cap-And-Trade Plan

The Trump administration said it would not be considering using an international cap-and-trade program to meet former President Barack Obama’s pledge to cut greenhouse gas emissions as part of the Paris agreement on climate change.

The Department of State gave generic, boilerplate responses to questions countries posed regarding aspects of America’s commitment under the Paris agreement. President Donald Trump has yet to determine whether he will keep his campaign promise to withdraw from the deal.

Trump Says ‘No’ To A Global Cap-And-Trade Plan | The Daily Caller

US Stock Market: Wall Street’s Earnings Hopium - by David Stockman

This time IS different. Normally they don’t ring a bell at the top, but right now the bell couldn’t be any louder. Or clearer.

Indeed, anyone left in the casino needs a powerful hearing aid.

The record stock market made a record run during the Donald’s first 100 Days — a period in which the vaunted Trump Stimulus on which it is all depended has sunk into the Imperial City’s swamp…

Trump’s tax proposal amounted to a $7.5 trillion add-on to the nation’s crushing public debt over the coming decade. That means there is no possible GOP majority to pass it. It also included $6.5 trillion of tax relief to business and the top 5%. That means that Dems won’t touch it with a ten-foot pole, either.

The very idea that there is going to be smooth hand-off of the “stimulus” baton to a giant Trump tax cut is by now just ludicrous. Its persistence is evidence we’ve reached the stage in the bubble cycle where Wall Street stock pushers have already gone full George Orwell.

They are now claiming a deflating economy is bounding back and that soft earnings are blowing the lights out. That is to say, when the bubble reaches its manic peak, the lies and hopium become outright comical.

That was evident in the alleged “blow-out” earnings of bellwether stocks like Amazon last week, which were nothing of the kind. Actually, they stunk.

Likewise, I heard some knucklehead from Morgan Stanley on Bloomberg yesterday morning urging not to be troubled at all by the tiny 0.7% annualized first quarter GDP gain because it was all temporary and the economy would come bounding back at 3% + in the next quarter.

My goodness, Wall Street economists have been saying that for six years now. But the ballyhooed arrival of “escape velocity” has never happened — notwithstanding that we are supposedly recovering from the worst recession of the post-war period. The rebound should have been greater on a purely statistical basis alone.

In fact, real GDP for the last quarter was up 1.9% year-over-year (Y/Y). And that compared to a 1.6% Y/Y gain in Q1 2016… a 3.3% Y/Y for Q1 2015… and 1.6% for Q1 2014.

This hardly looks like a sustained breakout after each periodic lull.

So the latest Y/Y growth blip was actually a tad weaker than the average Y/Y rate during the previous six years (2011 thru 2016). That has averaged 2.1% — despite repeated assurances by the Morgan Stanleys that every bout of sluggish growth during that period was just “temporary.”

So what we got again in Q1 was more of the same low growth rut. There’s no evidence for an energetic, sustainable recovery that could possibly justify a 24X valuation multiple on the S&P 500 at month 95 of a weak recovery.

But no matter. The Wall Street earnings narrative has become so corrupted that there really isn’t any need at all for actual economic growth. It has literally become the case that “down” is the new “up.”

For instance, Amazon’s operating earnings actually fell during Q1. It reported an operating margin of 3.7% for Q1 2016. That figure was down to 2.8% during the quarter just completed.

Nevertheless, the Wall Street propaganda machine, which is pleased to call itself the financial press, gushed all the same:

While retailers continue to struggle and dead malls pile up in characterless suburbs across America, Amazon just keeps cashing in, as the e-commerce and media behemoth delivered first-quarter earnings that blew past expectations, sending its stock up 4% in after-hours trading.

It’s certainly true that retailers are struggling and dead malls pile up in characterless suburbs across America. (I covered the topic extensively in yesterday’s Daily Reckoning.)

And it’s true that Amazon is bringing down the entire house of retail cards.

What remains of the the brick-and-mortar industry is resorting to ever more desperate competitive responses.

But as the rally in Amazon stock certainly demonstrates, “down” is indeed the new “up.”

My point is not merely to expose the absurdity of Amazon’s valuation.

The point is that the casino is now so unhinged that the robo-machines added $12 billion to Amazon’s market cap in the face of stunning evidence that its earnings have vaporized entirely.

Amazon has become a profitless engine of retail mass destruction. Because the wild west casino enabled by the Fed has abolished honest price discovery and radically suppressed the cost of risk to the gamblers and structured finance speculators who operate there, Amazon has become egregiously overvalued.

So Amazon’s extreme valuation is just plain irrational exuberance having one more fling. Spasms like this $12 billion gain are absolutely reminiscent of final days before the tech collapse of April-May 2000.

In case I haven’t made myself clear: Amazon is not a profit-making enterprise in any meaningful sense of the word and its stock price measures nothing more than the raging speculative juices in the casino.

In an honest free market, real investors would never give a near one-half trillion dollar valuation to a business that refuses to make a profit, never pays a dividend and is a piker in the free cash flow department — that is, in the very thing that capitalist enterprises are born to produce.

But there is more. The Amazon rampage through the brick and mortar world of retail is not remotely a case of “creative destruction” where new technologies, innovative entrepreneurs and better mousetraps demolish the old and usher in the new to the benefit of rising output and higher standards of  living for all.
 
Au contraire. Amazon is not only hideously over-valued on the stock market. It is also an economic mutant that is destroying wealth and capitalist prosperity because of the perverted incentives for cancerous “growth” at any price that have been fostered by the Fed’s destructive regime of Bubble Finance.

 Read more: Wall Street’s Earnings Hopium - The Daily Reckoning