Month: May 2016

They Finally Lost One

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The City Council of Austin passed regulations on ride sharing services, and Uber and Lyft spent millions in an attempt to override the vote through a plebiscite, and lost:

Uber and Lyft spent nearly $9 million on a May 7 special election in Austin, Texas. They offered free rides to the polls, and texted users asking for their support. They pulled out all the stops in a political playbook that has worked in almost every other city in the US.

For once, it wasn’t enough.

Voters in the Texan capital came out against Proposition 1, upholding ride-hailing regulations that the city council passed in December. The rules are stricter than ones that Uber and Lyft face in other jurisdictions: They require drivers for the services to pass fingerprint-based background checks, to identify their cars with company emblems, and to avoid picking up and dropping off passengers in certain lanes.

That is to say, exactly the same requirements as exist for the taxis.

………

Uber, I think decided, they were going to make Austin an example to the nation,” said David Butts, a local political consultant who helped coordinate the campaign against Proposition 1, according to a report in the Austin American-Statesman. “And Austin made Uber an example to the nation.”

Ahead of the vote, both Uber and Lyft had threatened to leave Austin should the proposition fail. Austin mayor Steve Adler invited them to stay despite the election results.

………

The nay vote on Proposition 1 is all the more crushing for Uber and Lyft considering the lopsided amount of money they spent in favor of it. The companies invested a combined $8.7 million to support the proposition via their lobbying committee, Ridesharing Works for Austin, an unprecedented sum in Austin local politics. That dwarfed the $132,000 that Proposition 1’s opponents strung together from about 500 individual contributions, according to campaign finance filings.

………

Uber and Lyft have cultivated the impression that their services are indispensable to cities. But Uber in particular has also spun itself as politically unbeatable. It has the money; it has the policy talent; it has the app that makes reaching potential voters as simple as sending a text or push notification to their phones.

………

That’s a potent narrative. With the loss in Austin, it’s starting to come undone.

The myth of inevitability and invincibility is central to Uber’s and Lyft’ssuccess.

It is what allows them to move into new markets, break the law, cheat their employees, place their customers at risk, and create a multi-billion dollar stock valuation.

It may not be the beginning of the end for the lawless players in the “sharing economy”, but it might be the end of the beginning.

I’m Calling Bullsh%$

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Al-Masdar news is reporting that the Panama Papers reveal that King Salman of the House of Saud laundered money which was donated to the Netanyahu campaign:

Isaac Herzog, member of the Knesset and Chairman of the Israeli Labor party, revealed that Saudi king Salman bin Abdulaziz financed the election campaign of Israeli Prime Minister, Benjamin Netanyahu.

There are no other sources for this.

The only other reports on the internet all link back to this source, and I have no information at all about tits reliability.

I am not citing this to suggest that it is true. I am citing this because my initial reaction was credulous, for about 45 seconds.

This post is not about the report, but about my initial reaction.

I wondered why my initial response was to believe.

I believe that this is because what the Middle East is, a bag full of cats that you can smell crazy on, to paraphrase a popular movie from a few years back.

Donald Trump at Least Recognizes That Our Nomenklatura Is Incompetent

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Say what you will about Donald Trump, but he recognizes that our foreign policy establishment is incompetent and corrupt: (And Yes, the source is suspect, but it’s a “Stopped Clock Being Right Twice a Day” thing.)

The National Interest, which is a (Possibly THE) seriously Neocon organization, is trying to explain why it hosted a Trump foreign policy speech, and is not endorsing Trump’s analysis:

………

As the hosts, we are ill suited to evaluate Mr. Trump’s speech; some may find criticism ungracious or, conversely, see praise as unpersuasive. That said, we heard enough from Mr. Trump to feel that while his approach to foreign and security policy is not yet fully developed and remains a work in progress, it is quite different from the existing semi-consensus among America’s foreign-policy elites. His remarks outlined a fundamental break with post-Cold War U.S. foreign policy and offered an alternative vision with considerable appeal to a frustrated public, if less to the elites who have defined, articulated and implemented policy through three administrations run by both major political parties.

I, however, do agree with Trump’s assessment regarding the general uselessness of our foreign establishment, even while eschewing his nonsensical solutions

………

For much of the post–Cold War era, experts both inside and outside the government have faced informal but powerful pressure to share in existing interventionist orthodoxies if they seek top positions requiring Senate confirmation or even regular appearances in mainstream media. From this perspective, it is predictable that an avowedly antiestablishment candidate should provoke ferocious rhetoric from not only the political establishment, but also the foreign-policy establishment (perhaps even more bitterly).

Pledging that he would not surround himself “with those who have perfect resumes but very little to brag about except responsibility for a long history of failed policies and continued losses at war” has surely fueled establishment fear of Mr. Trump. This statement—the functional equivalent of his signature line “you’re fired” directed at a number of former senior and mid-level officials—ensured that not only many Democrats, but also a number of Republicans in Washington’s foreign-policy community would race to the barricades. Some self-serving Trump-haters may well see this as the greatest danger he poses; ending the dominance of today’s foreign policy nomenklatura could directly threaten their careers. He provokes similar reactions among the transnational Davos elites by insisting “the nation-state remains the true foundation for happiness and harmony.”

In America, this Soviet-style foreign-policy nomenklatura system has helped the post–Cold War foreign-policy elites in the Republican and Democratic parties to develop a sense of entitlement wholly disproportionate to their accomplishments. How difficult was it to run America’s foreign policy during an era of virtually unquestioned dominance? Why—with so many advantages—have our elites produced so many failed policies? And why do they feel no shame? No matter how many individual positions he changes, Mr. Trump will never satisfy the architects of these massive mistakes or, for that matter, their ardent supporters on editorial boards and television screens. To be clear, it is entirely appropriate to criticize Mr. Trump’s views or, for that matter, his temper. Both have long been important components in our electoral politics. What is not appropriate is to attempt to shut down public discussion of critical national issues.

Our current foreign policy establishment, what I refer to as the Council on Foreign Relations crowd, has squandered blood and treasure, all while making us less secure and insuring that our influence will be diminished in the future.

Heck of a job, Brownie.

It Would Be My Concern Too

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The anonymous source behind the huge leak of documents known as the Panama Papers has offered to aid law enforcement officials in prosecutions related to offshore money laundering and tax evasion, but only if assured of protection from punishment.

“Legitimate whistle-blowers who expose unquestionable wrongdoing, whether insiders or outsiders, deserve immunity from government retribution,” the source, who has still not revealed a name or nationality, said in a statement issued Thursday night.

The documents, which list the true owners of thousands of companies created to hide the people behind them, expose the holdings of current and former world leaders and other prominent figures. The source, who uses the pseudonym John Doe but whose gender is not known, said that the papers could spur thousands of prosecutions, “if only law enforcement could access and evaluate the actual documents.”

John Doe noted that journalists who have viewed the papers have said they will not turn over the full archive of 11.5 million documents. “I, however, would be willing to cooperate with law enforcement to the extent that I am able,” the source wrote.

The statement, which was issued Thursday night under the condition that it not be reported until Friday morning, gave some hints about John Doe’s political views and concerns. They include income inequality, the American campaign finance system and the “revolving door” of United States officials who take jobs at banks or other companies they once regulated.

………

In the statement, the source denied being a government official or contractor, now or in the past. The confidential source was also extremely critical of the news media, suggesting that certain unnamed news organizations had declined initial offers to take and report on the documents.

I can understand “John Doe’s” concern.  There have been numerous cases where whistle blowers have been typically been sentenced to more jail time than the folks actually breaking the laws.
What’s more, when one looks at those prosecutions, and the the sentences, it becomes pretty clear that this is a feature of the American criminal justice system, and not a bug.
Prosecutors seem intent on punishing people who whistle blow on members of our plutocracy.

Ez a Mechayeh!

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In July, Microflaccid’s offer for a free upgrade to Windows 10 expires, and it means that those f%$#ing pop up windows will be going away:

There was one issue that went unspoken in Microsoft’s announcement on Thursday that the free Windows 10 upgrade offer would end on July 29. What would the company do about all those annoying, almost malware-like, pop-up notifications to upgrade to Windows 10 that appeared on the PCs of Windows 7 and 8.1 users? The answer is they will disappear.

“Details are still being finalized, but on July 29th the Get Windows 10 app…will be disabled and eventually removed from PCs worldwide,” Microsoft told WinBeta in a written statement.

Hallelujah

The company warned that it may take some time to disable the upgrade pop-ups on computers worldwide.

Hallelujah is right.

I am sick to death of Microsoft’s nags to install its f%$#ing spyware.

*It’s Yiddish, “איז אַ מחיה,” and it means that it is a great joy.

Time for a Massive Campaign of Civil Disobedience

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The elitists at the UK’s Natural Environment Research Council have decided to ignore the will of the people and name their new research vessel after naturalist and documentarian Sir David Attenborough, though they did throw a bone to the general public:

The UK’s new £200 million polar research ship will not be called Boaty McBoatface. The decision was announced early on Friday morning by the UK science minister, Jo Johnson. Instead, the new ship will be called the RRS (Royal Research Ship) Sir David Attenborough—a name that also picked up a few votes in the same poll that saw Boaty McBoatface come out way on top.

Showing at least a little bit of political savvy, Jo Johnson didn’t completely discard the people’s choice: RRS Sir David Attenborough will be outfitted with a number of remotely operated underwater vehicles (see gallery above), and one of those will be called Boaty McBoatface. Hopefully they’ll paint a dorky face on the front of its torpedo-like frame.

………

The Natural Environment Research Council (NERC) had originally planned to name the new ship via an online poll. Shortly after the poll began in March, James Hand, a former BBC radio presenter, proposed the name Boaty McBoatface. The name went viral and quickly picked up tens of thousands more votes than any other. The final tally was 124,109 votes for Boaty McBoatface, 34,371 for Poppy-Mai, and then a handful of others at around 10,000 (Sir David Attenborough picked up 10,284 votes).

………

Yesterday, following the naming debacle surrounding the ship, the UK’s parliamentary science and technology committee began an investigation into “science communication” and NERC’s approach to naming the ship.

You have to hand it to the science minister: if you’re going to take a huge political hit by ignoring the public’s choice, naming the ship after one of the few universally loved Britons is really quite smart. No one’s going to complain about a ship being named after Sir David—and it’s his 90th birthday this weekend. Damn you, Jo Johnson, damn you!

This is an outrage, and clearly it must not be allowed to stand.

Linkage

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This is still the creepiest music video that I’ve ever seen:

How Evocative

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Last night said that he had mixed emotions about Ted Cruz leaving the race, because it cleared the decks for Trump:

Is this a yay? I’m so conflicted. I mean, Ted Cruz lost, but it’s because Donald Trump won. It’s like finding out your herpes is gone but it’s because your dick fell off.

This is an almost perfect metaphor for the campaign season.

The Only Opinion that Matters ……… Except Maybe his Own

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Stephen Colbert just gave major props to Larry Wilmore for his White House Correspondents Dinner speech:

………

 Last night Stephen Colbert opened his monologue with that ‘phone call.’

 “Now personally, I thought Larry gave a great speech, that did not let the President or the press off the hook, And I am confident that Larry will receive the ultimate recognition for his work — never being invited back.”

 He also addressed the end of Larry’s speech, which if you have ever watched The Nightly Show you know was not a racial slur or insult. But leave it to Colbert to put it in perspective.

 “There was a little controversy, a moment at the end where Larry said the n-word. It was shocking, but it did lay the groundwork for President Trump to say it next year.”

That sound you hear is a mic dropping.

I Hate it When the Donald Says Something Sane

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He just continued low interest rates and a weak dollar.

Presumptive Republican presidential nominee Donald Trump on Thursday positioned himself on the far left of the political spectrum on fiscal issues, coming out for low interest rates, against a strong dollar and a more aggressive managing of U.S. debt.

 ………
 “She [Fed Chair Yellen] is a low interest rate person, she’s always been a low-interest-rate person, and let’s be honest, I’m a low-interest-rate person,” Trump added.

 Trump shifted to a discussion of the impact that higher rates has on the dollar, and on the impact a rising dollar has on U.S. business.

 “If we raise interest rates and if the dollar starts getting too strong, we’ll have some very major problems.”

 “I love the concept of a strong dollar, but when you look at the havoc that a strong dollar causes … it sounds better to have a strong dollar than it actually is.”

 ………

 One thing Trump advocated that the U.S. Treasury has resisted is a more active management of the debt. The U.S. Treasury hasn’t taken advantage of current low interest rates to issue more longer-term debt.

“I think there are times for us to refinance debt with longer term, we owe so much money,” Trump said.

While at times Trump seemed to link a conversation of refinancing with a situation where “the bubble popped” — at one point even suggesting a buyback of U.S. debt — he also made clear that he wanted to refinance now, to rebuild infrastructure.

This is a coherent and thoughtful, if someone iconoclastic, view of the economy, budget, and monetary policy.

It is also a refreshing departure from the conventional fetish about deficits that tends to promulgate austerity.

The economy remains depressed, interest rates are at historical lows, and it’s time borrow cheap and long term and spend on decaying infrastructure and create jobs.

I’ve said before that Donald Trump was the best Republican in the race,* and this reinforces my initial impression.

*Apart from that Mrs. Lincoln, how was the play.

Quote of the Day

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There is one aspect, however, in which Game of Thrones has a claim to being the most realistic show on television. Despite the wizards, the wights and the way every character manages to maintain perfect hair even when they’re being pointlessly tortured to death, there is something horribly relatable about Martin’s world of Westeros, whose characters have now become part of public myth. What sets it apart is not the monsters, the nudity or the festering gallons of gratuitous gore, but the overwhelming sense that the plot got run off the rails three books ago and is being steered towards a terrible precipice by a bunch of bickering, power-mad maniacs. This, coincidentally, happens to be the plot of the entire 21st century so far.

—Laurie Penny

As an aside, I probably should to watch a few episodes this show eventually, if just to understand the Obama/Anger Translator Luther “Khaleesi is coming to Westeros” reference.

And Hillary Clinton Acolytes Continue to Ruin the World

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The US is intensifying the pressure on Cyprus to accept a secret NATO plan to keep Turkish forces on the island.

Victoria Nuland, the State Department official in charge of regime change in Russia and Ukraine, met for talks last week with the President of Cyprus, Nicos Anastasiades, and with Turkish Cypriot figures. The State Department and US Embassy in Nicosia have kept silent on what was said. A well-informed Cypriot source reports Nuland “was in Cyprus to pre-empt any likelihood of future deepening in relations with Russia. Anastasiades may not want to, but he may have no other option.” A second Cypriot political source said: “[Nuland] will try to blackmail him. I’m not sure how he will react.”

Andros Kyprianou, head of AKEL, the Cyprus Communist Party running strongly against Anastasiades’s party in next month’s parliamentary election, issued an unusual warning against the Nuland plan. “For us”, Kyprianou (right) said, there is only one acceptable outcome to negotiations between the Greek and Turkish communities for the reunification of the island. This is a “solution that ends the occupation and colonization, restoring the sovereignty, independence, territorial integrity and unity of the Republic, based on UN resolutions, the High Level Agreements, International and European Law. The solution is to demilitarize Cyprus and excludes any guarantee and intervention rights in the internal affairs of the country by foreign forces.”

………

US military commanders and political leaders have never advocated Turkish withdrawal from the island, or compliance with the UN resolutions. Instead, they have recommended incorporating both parts of Cyprus into the North Atlantic Treaty Organization (NATO). The political and military commands in Ankara have been reluctant to accept a NATO solution for Cyprus because they object to what they regard as “dilution” of their army on the island. The Nuland plan is the latest attempt to give Ankara what it wants, and override Greek Cypriot objections. Nuland has also told Anastasiades she wants to accelerate agreement on the terms of settlement before the US presidential election in November.

Anastasiades has already declared himself in favour of joining NATO by signing the preliminary Partnership for Peace programme, but AKEL has been able to block it. For the time being, Cyprus is not a NATO member, and cannot accept another NATO base on its territory. “How can Nuland now push through a Turkish base on the island”, a well-known Cypriot strategist asks – “that isn’t a Turkish base and isn’t a NATO base either, but meets Ankara’s demand for a military ‘guarantee’, and will be accepted by Anastasiades?”

………

For weeks now in Moscow, there have been public hints that Nuland has resuscitated the scheme for withdrawing Turkish forces under the Turkish flag, then returning them under a NATO flag. In Nicosia in December, Foreign Minister Sergei Lavrov warned that such a scheme would be unacceptable to Russia. “The sides should reach agreements that would provide these security guarantees on a fundamentally new basis,” Lavrov said, “which will be acceptable to both Cypriot communities…This role should be primarily played by the UN Security Council.” For more details, read this.

In February, Lavrov’s spokesman at the ministry in Moscow attacked statements by Turkish President Recep Tayyip Erdogan for his “calls on the Cypriot Turks to take a tough, uncompromising stance in the ongoing intercommunal talks in Cyprus, including on territorial delimitation, a very sensitive issue. This is in stark contrast to Ankara’s statements on its commitment to facilitating a peaceful settlement on the island in the near future. It is obvious that by addressing such calls to one of the parties to the inter-Cypriot dialogue, Turkey’s leaders are rudely interfering in the negotiation process with a view of promoting their own interests.”

 This Neocon bullsh%$ is getting really old.

H/t Naked Capitalism.

Cue the Queen Song, and I Don’t Mean Bohemian Rhapsody

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Yesterday, Cruz dropped out, and today, Kasich threw in the towel:

Gov. John Kasich of Ohio, a moderate voice who tried to portray himself as the adult in the Republican primary field but failed to win any state but his own, ended his long-shot quest for the presidency on Wednesday, cementing Donald J. Trump’s grip on the presidential nomination.

 Mr. Kasich’s departure, a day after Mr. Trump’s victory in the Indiana primary, leaves Mr. Trump as the only candidate remaining in the Republican race. His closest challenger, Senator Ted Cruz of Texas, dropped out Tuesday night.

The Republicans have a nominee, and I am tremendously amused.

Then I remember who is leading in the Democratic primary, and I haz a sad.

Today’s Must Read

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Edward Snowden has an essay in The Intercept on on the nature whistle-blowing that you really need to read:

………

If harmfulness and authorization make no difference, what explains the distinction between the permissible and the impermissible disclosure?

The answer is control. A leak is acceptable if it’s not seen as a threat, as a challenge to the prerogatives of the institution. But if all of the disparate components of the institution — not just its head but its hands and feet, every part of its body — must be assumed to have the same power to discuss matters of concern, that is an existential threat to the modern political monopoly of information control, particularly if we’re talking about disclosures of serious wrongdoing, fraudulent activity, unlawful activities. If you can’t guarantee that you alone can exploit the flow of controlled information, then the aggregation of all the world’s unmentionables — including your own — begins to look more like a liability than an asset.

Read the rest.

I Know That It’s Not Good to See the Sausage Made, but We Should Know When It Is a Sh%$ Sandwich

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Greenpeace has published leaked documents detailing the negotiations between the US and EU over the TTIP, and it is worse than previously thought:

Bernd Lange, the chairman of the European Parliament’s important trade committee, has indicated that he now expects the Transatlantic Trade and Investment Partnership (TTIP) negotiations will probably fail, following a major leak of confidential documents from the talks.

Greenpeace Netherlands has released half of the entire TTIP draft text as of April 2016, prior to the start of the 13th round of TTIP negotiations between the EU and the US, which reveal US demands in detail for the first time.

Although the EU has improved transparency recently, and routinely publishes its offers for each TTIP chapter, the US has consistently refused to do so. Even MEPs and MPs have faced extreme restrictions on what they are allowed to look at, copy, or even say when it comes to the US position. The new leak by an unknown whistleblower represents a major blow to US attempts to keep its negotiating demands confidential, and provides important information to the both the EU and US public for the first time.


………

As Ars noted last September, in the face of massive public concerns about ISDS, the European Commission is proposing a modified approach, the Investment Court System (ICS), which it claims addresses the problems of ISDS. However, even though the ICS idea was formally presented to the US last year, one of the TTIP leaks shows that it was not even discussed during the 12th round, something that the European Commission’s public report on the negotiations omitted to mention. This confirms earlier indications that the US is not interested in ICS, and will insist on including standard ISDS in TTIP, regardless of EU worries.

A leaked chapter on “Regulatory coherence, transparency and other good regulatory practices” indicates that the US wants all regulations, even those concerning health and safety or environmental issues, to be judged by the yardstick of their effects on trade: “When developing a regulation, a regulatory authority of a Party shall evaluate any information provided in comments by the other Party or a person of the other Party regarding the potential trade effects of the regulation that it receives during the comment period.”

n practice, this means that companies will be able to challenge any new EU and US regulations that might have an adverse effect on their profits, as is often the case when new environment regulations are brought in. It is likely to make it much harder to strengthen laws that might disadvantage business but protect public health and safety.

………

The key sentence comes in the particularly sensitive document entitled “Tactical State of Play of the TTIP Negotiations.” This is essentially the European Commision’s frank evaluation of where things stand in the TTIP talks. Here’s what it has to say on the US demand: “progress on motor vehicle-related parts would only be possible if the EU showed progress in the discussion on agricultural tariffs.” In other words, if the EU doesn’t open up its markets to agricultural products from the US—which means things like beef treated with hormones, and maybe even chlorine chickens—there will be no improved access for EU car manufacturers.

………

It is also concerned that the EU’s “precautionary principle,” which requires that products should be shown to be safe before they can be put on the market is being replaced by the US “risk-based” approach, which allows products to be sold until it is proved that they are dangerous.

………

Finally, and perhaps most importantly, public support for TTIP was already plummeting, even before this leak appeared. It seems unlikely that the information it reveals about US demands will assuage any European fears.

Looking at the positions that have been taken by  the US in these negotiations, I can only say that, “We have met the enemy, and he is us.”

The worst parts of the trade deals that the US have negotiated over the past few decades is not that reality, and our partners, require compromises.

The worst parts of the trade deals that the US have negotiated over the past few decades come from a foreign trade establishment who follows the most extreme and destructive philosophy.

Here is hoping that the free market market mousketeers who have been driving foreign trade deals get a job flipping burgers, because their death toll is beginning to rival that of Josef Stalin.

Same as it Ever Was………

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It looks like GSE Freddie Mac may need another baliout:

Freddie Mac is expected to report a loss when it announces first-quarter earnings before the bell on Tuesday. That’s bad news for any public company, but especially critical for the mortgage provider because of its tangled history with the federal government.

Freddie and its counterpart, Fannie Mae were put into conservatorship in 2008 as the mortgage meltdown ensnared the financial system. They have lingered as wards of the state ever since. The Treasury Department modified the deal in 2012, requiring Fannie and Freddie to send all quarterly profits to the government — and shrink their reserves to zero by 2018.

As Mel Watt, the chairman of Fannie and Freddie’s regulator, put it in a speech in February, Fannie and Freddie are quickly approaching the point where they won’t be able to weather quarterly losses without going back to the Treasury for taxpayer dollars.

………

Bank analyst Richard Bove speculated about the possibility of a first-quarter loss in a recent note. “It is impossible for an outsider to predict what this will do to Freddie Mac earnings but it is not unrealistic to assume a loss of $2 billion plus in derivatives (it could be as high as $4 billion or more). At the $2 billion plus level, Freddie Mac’s pretax earnings would be negative $749 million,” Bove, vice president of equity research at Rafferty Capital Markets, wrote.

Spokeswomen for Freddie and its regulator, the Federal Housing Finance Agency, declined to comment.

A Treasury draw is a possibility, Moody’s Analytics Chief Economist Mark Zandi told MarketWatch, although he thinks the chance of one is “less than 50-50.”

The 10-year Treasury declined 49 basis points in the first quarter, far more than the 29-basis point drop that caused Freddie’s loss last year, noted Laurie Goodman, director of the Housing Finance Policy Center at the Urban Institute. (A basis point is one one-hundredth of a percentage point.)

Time to party like it’s late 2008, I guess.

Seriously, has there been a financial “Innovation” since the Automatic Teller Machine that has been about anything but ripping the rest of us off?

We are now in a never ending bust and bust cycle where the banksters get richer, and the rest of us get poorer.

Here Is the Latest Scare Story about a Brexit

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It appears that a French economist with close ties to the government is makign dire predictions about what would happen if the UK votes to leave the euro:

Eurozone economies would gain at the expense of Britain if the UK voted to leave the EU, a leading French economist has predicted, with a relocation of financial activity out of London causing sterling to plummet.

Mathilde Lemoine, a prominent member of the French government’s budgetary watchdog and chief economist of the Edmond de Rothschild private bank, said sterling could rapidly fall 34 per cent against the euro.

The report by the private bank demonstrated how European finance houses could profit from Brexit if the Leave campaign wins the referendum on June 23.

Ms Lemoine, also a former adviser to the French prime minister, wrote that the rapid relocation of financial activity would add to the “brutal drop” in sterling she expects after a vote for Brexit.

Such a vote, she said, would “immediately” reopen the question of the location of clearing houses for eurozone business, which are mostly in London after the UK government won a case last year in the European Court of Justice. It ruled against the European Central Bank’s requirement that clearing houses of euro-denominated business between European banks had to be based in the eurozone and regulated by the ECB.

After a Brexit vote, “it is certain that the grounds for the European Court of Justice’s decision would no longer exist,” Ms Lemoine wrote. “As a result, the European Council could immediately require clearing houses handling euro transactions to be located in the eurozone. On our calculations, sterling would fall 34 per cent against the euro in the space of three months”.

It’s enough to make one want to invoke the proverbial briar patch.

If  Lemoine’s predictions are true, this win for the UK:

  • Finance moves out
    • Should reduce insane real estate prices in and around London.
    • Restructuring of the economy from finance is better for 99+% of the people with less inequality, and more productive industry.
    • The corruption influence of finance and other rent seeking industries on the political system is reduced.
    • Intellectual capital that is otherwise wasted on finance and banking returns to productive pursuits.
  • Pound falls.
    • Trade balance improves, because imports are more expensive, and exports are cheaper.
    • Inflation increases, which solves the UK’s current disinflation, which will make recovery better, because people are less inclined to hoard money, and inflation devalues debts.

This horror story really isn’t particularly horrible.

    This Makes it Even Better

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    In news unrelated to the Presidential election, former New York State Assembly Speaker Sheldon Silver was sentenced to 12 years in prison for corruption:


    Sheldon Silver was sentenced to 12 years in prison Tuesday, making the former New York Assembly speaker one of the most powerful politicians in the state to be given time behind bars.

    U.S. District Judge Valerie Caproni, who also ordered Mr. Silver to pay a fine of $1.75 million and forfeit about $5.3 million he reaped from the criminal schemes of which he was convicted, said she hoped the punishment would serve as a deterrent.

    “I hope the sentence I impose on you will make other politicians think twice, until their better angels take over,” said Judge Caproni. “Or, if there are no better angels, perhaps the fear of living out ones golden years in an orange jumpsuit will keep them on the straight and narrow.”

    In a brief statement before the sentence was announced, Mr. Silver, 72 years old, said he had let down his family, colleagues and constituents.

    “I’m truly, truly sorry for that,” said Mr. Silver, who was found guilty in November of honest-services fraud, extortion, and money laundering.

    ………

    Two of his former Albany colleagues are expected to be sentenced later this month.

    Former state Senate Majority Leader Dean Skelos, who in December was found guilty of public-corruption charges including conspiracy, bribery and extortion, is scheduled to be sentenced on May 12. Former state Sen. John Sampson, who was found guilty in July of obstruction of justice and making false statements to investigators, is scheduled to be sentenced in Brooklyn federal court May 19.

    I’m hoping that this puts enough of a fear of God into Skelos that he flips on Cuomo, because 14 years has gotta be scaring the hell out of him.