Baltic Dry Crashes as Insiders Warn ‘Commerce Has Come to a Halt’

The continued collapse of The Baltic Dry Index remains ignored by most – besides we still have Netflix, right? But, as Dollar Vigilante’s Jeff Berwick details, it appears the worldwide ‘real’ economy has ground to a halt!!

Last week, I received news from a contact who is friends with one of the biggest billionaire shipping families in the world. He told me they had no ships at sea right now, because operating them meant running at a loss.

This weekend, reports are circulating saying much the same thing: The North Atlantic has little or no cargo ships traveling in its waters. Instead, they are anchored. Unmoving. Empty.

You can see one such report here. According to it,

Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.

(Read more from “Baltic Dry Crashes as Insiders Warn ‘Commerce Has Come to a Halt'” HERE)

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Hillary Clinton’s State Department Discussed Creating Riots in Israel

As incredible as it may sound, the US Ambassador to Israel, Thomas Pickering, pitched a plan to Hillary Clinton to use UN and Non-governmental organizations to foment riots in Israel as a way of forcing Israel to agree to concessions to the Palestinians.

In the aftermath of the fall of Egypt and Libya, the State department thought it had stumbled upon the perfect weapon to be used against dictators: street riots (you must break eggs to make omelets, n’est-ce pas), insurrection, and the a few US airstrikes. When it became clear that the future and the territorial integrity of Israel meant more to Benjamin Netanyahu that international acclaim given to Barack Obama and Hillary Clinton, it was only natural that they consider him an enemy and try to unleash the same strategy on him. Via The Washington Free Beacon:

Pickering described the effort as a potential “game changer in the region,” recommending that the United States undertake a clandestine campaign to generate unrest. Clinton requested that his email be printed.

“What will change the situation is a major effort to use non-violent protests and demonstrations to put peace back in the center of people’s aspirations as well as their thoughts, and use that to influence the political leadership,” Pickering wrote.

“This is far from a sure thing, but far, in my humble view, from hopeless,” he continued. “Women can and ought to be at the center of these demonstrations. Many men and others will denigrate the idea. I don’t and I don’t think that was your message.”

(Read more from “Hillary Clinton’s State Department Discussed Creating Riots in Israel” HERE)

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‘Don’t Go out Alone at Night’: Migrant Rape Fears Spread Across Europe

Security authorities are growing increasingly concerned by the rising number of sex attacks by gangs of migrants which appear to be spreading across Europe.

Finland and Sweden today became the latest European countries to issue warnings to women to be wary of the threat of sex attacks following fresh reports of sexual assaults in the last week, while the Viennese police chief adviced women not to go outside alone in Vienna.

The warnings come as reports emerged that Austrian and German police tried to cover-up the issue over fears of reprisal attacks on asylum seekers and damage to the countries’ tourist trade . . .

Finnish police said today that they had been tipped off about plans by groups of asylum seekers to sexually harass women following an unusually high level of sexual harassment cases in Helsinki.

‘There hasn’t been this kind of harassment on previous New Year’s Eves or other occasions for that matter… This is a completely new phenomenon in Helsinki,’ said deputy police chief Ilkka Koskimaki. (Read more from “‘Don’t Go out Alone at Night’: Migrant Rape Fears Spread Across Europe” HERE)

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‘Mission Accomplished’: Mexican President Says El Chapo Caught

Mexican forces escorted notorious drug kingpin Joaquin “El Chapo” Guzman out of an armored vehicle and into a helicopter late Friday night following his arrest after months on the run.

Mexican security forces trying to capture notorious drug kingpin Joaquin “El Chapo” Guzman in Sinaloa encountered heavy gunfire that led to the deaths of various suspects, the attorney general said . . .

The people linked to the July escape of Mexican drug kingpin Joaquin “El Chapo” Guzman included two pilots, one of his attorneys and a brother-in-law, the attorney general said. Guzman was arrested Friday . . .

Members of Mexico’s navy caught Guzman in an operation about 4:30 a.m. (6:30 a.m. ET) in the coastal city of Los Mochis in Sinaloa state, a senior law enforcement official in Mexico told CNN.

Several people aligned with Guzman died in the raid, the official said. The Mexican navy put the number of dead at five, with six others arrested. No navy personnel were killed, and only one was injured. (Read more from “‘Mission Accomplished’: Mexican President Says El Chapo Caught” HERE)

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Why China Is the Biggest Deterrent to Stopping North Korea’s Nuclear Program

North Korea’s fourth nuclear test may be its most consequential, but the world is limited in how far it can escalate its response.

Though the Obama administration disputed North Korea’s assertion that it had tested a hydrogen bomb, which would be the most powerful nuclear weapon the country has ever tested, the act violated international treaties, showing that measures to rein in Pyongyang have failed.

Still, unless North Korea’s powerful backer, China, agrees to change course and strengthen sanctions in a way that hampers Pyongyang’s economy and brings the regime near collapse, nuclear experts say the the country’s young leader, Kim Jong-un, will remain undeterred.

“Basically North Korea is committed to developing a nuclear weapons program and we don’t have the policy tools to convince them or force them to give it up,” said Gary Samore, President Barack Obama’s former chief adviser on nuclear policy.

“If you look at the tools available and the magnitude of the problem, it can’t be resolved as long as the North Korean regime survives,” Samore continued in an interview with The Daily Signal.

“The best we can do is slow down and delay program, and I think we have done that.”

Bruce Klinger of the Heritage Foundation, who served as the CIA’s deputy division chief for Korea analysis, argues the Obama administration is not “fully implementing” U.S. laws against North Korea.

“Obama has said North Korea is the most heavily sanctioned country in the world, and there’s not much more we can do, but that’s not true,” Klinger told The Daily Signal. “We are not making the pain strong enough for North Korea to change policy. This administration has had a policy of timid incrementalism. But under existing U.S. law there are things we can do, because we have done them to other countries.”

Samore said Obama’s strategy to confront North Korea has been similar to past presidents, whose diplomatic overtures were frustrated by a regime that ignores international pressure, while the most powerful potential partner in that effort, China, has proved unwilling to take major action.

“What’s remarkable is how consistent U.S. policy has been over last three presidents, and how consistently it has failed,” said Samore, who also worked on nuclear issues in the Clinton and Reagan administrations. “We are really limited in what we can do as long as China has fundamentally different national interests.”

China, as a member of the United Nations Security Council, has veto power over any resolution put forth by that body, and is especially influential in the context of North Korea because it is Pyongyang’s largest trading partner and economic provider.

In the past, China and Russia have objected to potential United Nations measures that could threaten the North Korean regime’s survival, such as sanctions targeting financial transactions with the country, or sales of commodities like coal.

“For the Chinese, as much as they are uncomfortable with the North Korean nuclear program, their bigger fear is a collapse of the regime, and unification under a government friendly to the U.S,” Samore said. “That would weaken China’s geopolitical position. North Korea may not be much of an ally to China, but it’s better for them than the Korean peninsula being dominated by a government friendly to the U.S.”

After meeting Wednesday, the Security Council vowed to “begin to work immediately” on a resolution imposing additional measures against North Korea, and the American ambassador to the United Nations, Samantha Power, called for a “tough, comprehensive and credible package of new sanctions.”

The Security Council has adopted four major resolutions since 2006 sanctioning North Korea for continuing to develop its nuclear weapons program and calling on Pyongyang to dismantle it.

But Samore said existing measures specifically target North Korea’s nuclear and missile programs and don’t strongly impact the country’s basic economy.

“If you look at the last resolution [from March 2013], there are bans on the sale of certain commodities to North Korea because of their potential use for nuclear activity, and a ban on financial transfers that people believe could support the nuclear program,” Samore said. “But these are all targeted sanctions, so they are not important in influencing the overall economy. The big question is whether the Chinese would be willing to consider sanctions beyond targeted sanctions. I’d be delighted if this last test would be enough to persuade Beijing to go a bit further, but we haven’t seen much evidence of that.”

House Speaker Paul Ryan, R-Wis., on Thursday said Congress would not wait to take action of its own, with plans next week for a sanctions vote against North Korea that will likely receive bipartisan support.

Outside of actions related to sanctions, South Korea is talking with the U.S. about deploying American strategic weapons on the Korean peninsula, according to Reuters.

South Korea also said it will restart propaganda broadcasts into North Korea, Reuters reported.

Bruce W. Bennett, a defense analyst at the RAND Corporation focused on Northeast Asian military issues, said the U.S. is wise to consider nontraditional measures such as these.

“Part of the problem is we usually focus on economic responses with some form of sanctions,” Bennett said. “But North Korea is largely isolated from the international marketplace and has not been affected much by U.N. actions. I think we have to ask if economic sanctions are the right approach. If we could also put political pressure on North Korea, that might change their incentives.”

If North Korea doesn’t change, the stakes are significant.

North Korea is different than Iran, another nuclear threat, in that Pyongyang already has a small arsenal of nuclear weapons, while Tehran only has ambitions to do so.

Some nuclear experts say North Korea could have more than 20 weapons by the end of this year.

While Samore says North Korea is “years away” from being able to deliver its nuclear arsenal into a weapon that could hit the U.S., Pyongyang has medium-range missiles that threaten allies South Korea and Japan sooner.

“This particular test, this is the fourth one, so it’s hard to get too excited,” Samore said. “But the overall trend is North Korea is seeking to develop the nuclear weapons ability to attack us. There are no questions that is the objective.” (For more from the author of “Why China Is the Biggest Deterrent to Stopping North Korea’s Nuclear Program” please click HERE)

Watch a recent interview with the author below:

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U.N. Taking Drastic Measures After North Korea Claims to Test Hydrogen Bomb

By Greg Botelho and Euan McKirdy. The U.N. Security Council is set to implement “significant” punitive measures after North Korea’s nuclear test Wednesday and will begin working on a new resolution “immediately,” a statement released by Security Council President Elbio Rosselli says.

After Wednesday’s meeting, the council, which includes China, Russia and the United States, together condemned the test as a “clear violation of (past) resolutions … and of the nonproliferation regime.”

Along with “strongly condemning” the test, members of the council determined to create a resolution that acts on previous promises to further curb the reclusive state’s ability to further its nuclear weapons program.

The 15-member U.N. Security Council held a closed-door meeting Wednesday geared to preventing Pyongyang from getting more nuclear weapons and punishing it for the test earlier that day.

Past U.N. measures included arms, nonproliferation and luxury good embargoes, a freeze on overseas financial assets and a travel ban. None of them have so far stopped North Korea from continuing its nuclear program. (Read more from “U.N. Taking Drastic Measures After North Korea Claims to Test Hydrogen Bomb” HERE)


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North Korea: We Tested an ‘H-Bomb’

By Gordon G. Chang. Chilling announcement raises huge concerns over nuclear proliferation and proves that Kim Jong Un doesn’t care what Obama and the rest of the world think about his militant regime.

North Korea today claimed it has joined the world’s first rank of nuclear nations by successfully conducting a hydrogen bomb test at 10 a.m. Pyongyang time.

If the claim is true, the Kim Jong Un regime has made far more progress in developing nuclear weapons than believed. Even if the boast is false, the detonation is a dangerous signal.

The test, which triggered international earthquake detection systems, will plunge the region into a diplomatic crisis and intensifies concerns about nuclear proliferation to Iran. (Read more from “North Korea: We Tested an ‘H-Bomb'” HERE)

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Gay Cult? ISIS Leader Who Raped Boy Is Excused While Raped 15-Yr-Old Is Executed

The 15-year-old victim was thrown to his death off a high building in Deir ezzor province in Syria after being sentenced to death by an Islamic court.

According to Islamic State’s radical interpretation of Sharia law, homosexuality is considered an offence punishable by death.

A witness said the execution took place in public, in front of a large gathering of local civilians in the area.

The ISIS commander who raped him is believed to be Abu Zaid al-Jazrawi, who previously appeared in a video showing child soldiers executing prisoners in a sickening twist on the game of hide and seek . . .

Their apparent extreme machismo and violence is considered to be a front to cover their sexual desire for men, and homosexual acts are reportedly commonplace on the Daesh frontline. (Read more from “Gay Cult? ISIS Leader Who Raped Boy Is Excused While Raped 15-Yr-Old Is Executed” HERE)

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U.K. Parliament Just Announced Something Major About Trump [+video]

The United Kingdom Parliament will debate banning GOP presidential candidate Donald Trump from the country later this month.

Ministers will consider whether or not to prohibit Trump from entering the country Jan. 18 after a petition to Parliament calling for a ban gained more than half a million signatures. “The UK has banned entry to many individuals for hate speech,” the petition reads. “If the United Kingdom is to continue applying the ‘unacceptable behaviour’ criteria to those who wish to enter its borders, it must be fairly applied to the rich as well as poor, and the weak as well as powerful.”

Suzanne Kelly, the freelance journalist who began the petition, welcomed the news. “However the debate goes, this exercise has brought many people together to speak out against hate speech and prejudice,” she said in a statement. “That is my reward, and one I’m very happy and moved by.” (Read more from “U.K. Parliament Just Announced Something Major About Trump” HERE)

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What Migrants Did at a New Year’s Eve Celebration in Germany Exposes a Horrifying Truth

Just five arrests have been made by German police after central Cologne was transformed into a war-zone on New Year’s Eve, as an estimated 1,000 migrants celebrated by launching fireworks into crowds and sexually assaulting German women caught up in the chaos.

The sordid details of the horrifying sexual assaults and attacks made against ordinary Germans by large gangs of migrants in Cologne in the early hours of Friday morning are just now emerging.

Far from a small number of sex assaults reported to have been made by German speaking men in initial reports on New Year’s Day, dozens of women are now reported to have been molested and “raped”, while dozens more men have been assaulted and robbed.

One victim, 28 year old ‘Katja L’ spoke of her ordeal as she tried to make her way to the waiting room of Cologne railway station with two other girls and a boyfriend in the early hours of new year’s day. She told Der Express – one of the largest regional newspapers: “When we came out of the station, we were very surprised by the group that met us there”. She said the group was “exclusively young foreign men”. Keeping close to her friends, they pressed on:

“We then walked through this group of men. There was an alley through [the men] which we walked through. Suddenly I felt a hand on my buttocks, then on my breasts, in the end, I was groped everywhere. It was a nightmare. Although we shouted and beat them, the guys did not stop. I was desperate and think I was touched around 100 times in the 200 meters.” (Read more from “What Migrants Did at a New Year’s Eve Celebration in Germany Exposes a Horrifying Truth” HERE)

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China’s Rigged Markets Could Fall Much Further, Much Faster

Those fearing that China is the big risk in the year ahead for global markets hope that the first trading day of 2016 does not set the tone for the rest of the year.

Between a 7% fall in shares that triggered new circuit breakers on the Shanghai SHCOMP, -1.63% and Shenzhen stock exchanges 399100, -3.29% and accelerated weakness in the yuan, there is ample fodder for China bears.

The question being posed anew is whether 2016 will be the year Beijing finally throws in the towel on its attempts to coerce multiple asset markets upwards, while its economy continues to sink in a sea of debt.

While yet more weak industrial activity numbers from the Caixin China December PMI got the new year off to a flat start, the bigger concern is whether the leadership still has the will or the ability to continue holding up stock prices as its confronts ever more painful policy choices.

The black start to January trading had its roots in the controversial government intervention last summer to rescue stocks from a rout, which wiped over $4 trillion off share values and sent shock waves around global markets. (Read more from “China’s Rigged Markets Could Fall Much Further, Much Faster” HERE)

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