Jim’s Mailbox

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Courtesy of Dave.

Jim

Putin And Xi Top The G6+1
June 10, 2018

. . .

“Strategic” game-changer

Meanwhile, over in Qingdao, the stunning takeaway was offered predictably by Chinese President Xi Jinping; “President Putin and I both think that the China-Russia comprehensive strategic partnership is mature, firm and stable.”

This is a massive game-changer because officially, so far, this was a “comprehensive partnership.” It’s the first time on record that Xi has put the stress on “strategic”. Again, in his own words: “It is the highest-level, most profound and strategically most significant relationship between major countries in the world.”

And if that was not far-reaching enough, it’s also personal. Xi, referring to Putin and perhaps channeling Trump’s bonhomie with leaders he likes, said, “He is my best, most intimate friend.”

More…

Courtesy of Dave.

Jim

“They Threw Russia Out”: On Trump’s Understanding of Recent History
June 12, 2018

Let me make this simple. The U.S. itself led the expulsion of Russia from the G-8 in 2014 to punish it for annexing Crimea.

First, in a regime-change operation costing some $ 5 billion, the U.S. backed and funded a bloody putsch spearheaded by neo-fascists in Kiev in February 2014. It toppled a democratically elected president, replacing him with a right-wing regime committed to NATO membership and the expulsion of the Russians from bases in Crimea. These are bases Russia had held since the 1770s and retained by long-term agreement with Ukraine following the dissolution of the Soviet Union in 1991.

Donald, if you don’t know any of this stuff I don’t blame you. It wasn’t well covered on the news channels you watch. And I hear you don’t read much.

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Jim/Bill/Dave,

Read a good summary of the debt increase!

GG

Debt Clock Ticking
June 8, 2018

Rather go to bed without dinner than to rise in debt.

—Benjamin Franklin

What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience?

—Adam Smith

There are no shortcuts when it comes to getting out of debt.

—Dave Ramsey

Modern slaves are not in chains, they are in debt.

—Anonymous

Debt isn’t always a form of slavery, but those old sayings didn’t come from nowhere. You can find hundreds of quotes on the Internet discussing the problems of debt. Debt traps borrowers, lenders, and innocent bystanders, too. If debt were a drug, we would demand it be outlawed.

The advantage of debt is it lets you bring the future into the present, buying things you couldn’t afford if you had to pay full price now. This can be good or bad, depending on what you buy. Going into debt for education that will raise your income, or for factory equipment that will increase your output, can be positive. Debt for a tropical vacation, probably not.

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I smell blood in the water.

Jim

Jim/Bill,

Taking a closer look at an innocuous headline reveals some serious underlying problems.

A trigger for a banking meltdown possible?

Maybe. Maybe not.

Looks to me like the political instability and tensions are catching up with banks. They are mired in quicksand and appear to be scrambling to get out.

CIGA Wolfgang Rech

Citigroup Backs Key Deutsche Bank Investor After Rout
June 12, 2018

Citigroup Inc. jumped in as a financier for a key Deutsche Bank AG shareholder after Bank of America Corp. dropped out to pare potential risks linked to the German lender’s stock rout, people with knowledge of the matter said.

Citigroup will finance a few hundred million euros for former Qatari Prime Minister Sheikh Hamad bin Jassim Al Thani’s margin loan after the value of his Deutsche Bank holding shrank, the people said, asking not to be named as details aren’t public. The rout in Deutsche Bank shares in recent weeks triggered a so-called “termination event” for the lender who had provided credit, backed by the stake, the people said.

While lenders frequently restructure loans to back clients during a market slump, Bank of America opted to withdraw because of the perceived risk involved and their own lower appetite for losses, they said. Representatives for Citigroup and Bank of America declined to comment, while spokesmen for Al Thani didn’t respond to requests.

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Courtesy of JB.

Jim

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Courtesy of JB.

Jim

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Courtesy of JB.

Jim

Trump To ‘Hannity’: Kim Jong Un To Start Denuclearization ‘Virtually Immediately’
June 12, 2018

President Trump, on the heels of his historic summit with Kim Jong Un, told Fox News’ Sean Hannity that he believes the North Korean leader will begin to work toward dismantling his country’s nuclear program “virtually immediately.”

The president left Singapore after the two leaders signed a document stating Pyongyang would work toward “complete denuclearization of the Korean Peninsula.”

In an interview with Fox News, Trump said the process is “really moving rapidly.”

“I just think that we are now we are going to start the process of denuclearization of North Korea, and I believe that he’s going back and will start it virtually immediately – and he’s already indicated that and you look at what he’s done,” Trump said.

The historic agreement came after the two leaders held several meetings throughout the day. Trump was asked by a reporter if Kim agreed to denuclearize and he said, “We are starting that process very quickly.”

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