miercuri, 3 septembrie 2014

Damn Cool Pics

Damn Cool Pics


Creepy Food That Will Freak You Out

Posted: 03 Sep 2014 07:21 PM PDT

This food is pretty disturbing. All of it has been transformed into something grotesque and disgusting. It doesn't matter how hungry you are, this food will ruin your appetite.























Snoop Dogg Is Now A White Guy Named Todd

Posted: 03 Sep 2014 02:50 PM PDT

Snoop Dogg isn't Snoop Dogg anymore, now he's white guy Todd. Snoop has transformed himself into Todd by painting his face white and wearing a blonde wig. He's released a recent video where he promotes a site called White Guys Connect and everyone is talking about it. Snoop has had a lot of transformations over the years but this has to be his funniest incarnation yet.























Eat The World's Most Expensive Food in One Day [Infographic]

Posted: 03 Sep 2014 02:44 PM PDT

From a $1,000 Lobster Frittata for breakfast to a $25,000 chocolate ice cream for dessert, The Goodale Miller Team covers the world's most expensive foods from the breakfast table to the dinner plate. Work up a hunger and break out the credit card, because this is one luxurious feast for the senses and wallet.

Click on Image to Enlarge.


"We're Stronger Because We're Democracies"

 
Here's what's going on at the White House today.
 
 
 
 
 
  Featured

"We're Stronger Because We're Democracies"

At the Nordea Concert Hall in Tallinn, Estonia today, President Obama spoke to students, young professionals, and civic leaders about the enduring strength and promise of democracy.

In celebrating the 10th anniversary of the Baltics in NATO, the President noted that "freedom needs a foundation of security," and will now "always be guaranteed by the strongest military alliance the world has ever known." He made clear, however, that it's not a military alliance that makes our countries strong -- it is our commitment to democracy:

We're stronger because we're democracies. We're not afraid of free and fair elections, because true legitimacy can only come from one source -- and that is the people. We're not afraid of an independent judiciary, because no one is above the law. We're not afraid of a free press or vibrant debate or a strong civil society, because leaders must be held accountable. We're not afraid to let our young people go online to learn and discover and organize, because we know that countries are more successful when citizens are free to think for themselves.

See more of the President's remarks here:

Learn more about the President's remarks today.


 
 
  Top Stories

President Obama Gives a Statement on the Murder of Steven Sotloff

This morning, in a joint press conference with President Ilves of Estonia, President Obama gave a statement about the murder of journalist Steven Sotloff.

READ MORE

Made in America: 11.3 Million Jobs

A key part of what makes our economy so dominant is what we build here in America. In fact, a new report from the Department of Commerce shows that America’s goods and services exports directly supported more than 11.3 million American jobs in 2013, with goods exports alone supporting about 7.1 million of those jobs.

READ MORE

The Land and Water Conservation Fund and the Wilderness Act Turn 50

Fifty years ago today, President Lyndon Johnson signed two landmark bills -- the Land and Water Conservation Fund Act, and the Wilderness Act -- ushering in a new era of conservation.

READ MORE


 
 
  Today's Schedule

All times are Eastern Time (ET)

2:45 AM: The President meets and greets with Embassy personnel

3:20 AM: The President participates in an official arrival ceremony

3:40 AM: The President participates in the guest book signing and official photo with President Ilves of Estonia

3:45 AM: The President holds a bilateral meeting with President Ilves of Estonia

4:50 AM: The President holds a joint press conference with President Ilves of Estonia

6:10 AM: The President arrives to the Stenbock House

6:20 AM: The President holds a bilateral meeting with Prime Minister Roivas of Estonia

7:20 AM: The President meets with President Ilves of Estonia, President Berzins of Latvia, and President Grybauskaite of Lithuania

8:20 AM: The President, President Ilves of Estonia, President Berzins of Latvia, and President Grybauskaite of Lithuania deliver statements

9:10 AM: The President delivers remarks

10:20 AM: The President and Prime Minister Roivas of Estonia receive a briefing on NATO Reassurance

10:25 AM: The President and Prime Minister Roivas of Estonia deliver remarks to U.S. & Estonian Service Members

10:55 AM: The President departs Tallinn, Estonia en route Fairford, United Kingdom

11:45 AM: The Vice President delivers remarks at the Portsmouth Naval Shipyard

1:55 PM: The President arrives Fairford, United Kingdom


 

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Back to School: Lesson 1- What is SEO?

Back to School: Lesson 1- What is SEO?

Link to White.net

Back to School: Lesson 1- What is SEO?

Posted: 02 Sep 2014 09:29 AM PDT

This week, over 600,000 children in England are starting school for the first time – and in a strange sense, I feel like one of them. It was only a few weeks ago that I started in the role of Marketing Executive here at White and only just over a year ago that I decided to hand in my resignation as a school teacher and make a complete career change. Entering the big world of marketing, moreover, the world of digital marketing has been an eye-opening and insightful experience, but something tells me that what I’ve seen so far is only the tip of the iceberg.

 

White

I met Stuart, our company's founder and MD, at an annual round table debate evening held by my university at the time, Oxford Brookes. With several companies attending from a wealth of industries, I had been given the role of "greeter girl" at the door. Wanting to make the time worth my while, I took the opportunity to network with every company representative that walked past me, whilst also boldly asking if they were hiring. Stuart was one of the first to reply, 'actually, we might have something for you at White…' After two interviews, I landed the role of Marketing Executive at White's offices in Oxford. New to the industry, I did what any freshly-graduated student would do starting in a SEO company for the first time, I went on Amazon and bought SEO for Dummies. Book read, lunch packed and new handbag ready to go, I set off to explore the world of digital…  

 

Welcome to the Industry

After only the first few hours, I already loved the world of digital and what it entailed. I was given a thorough induction talk by the one-and-only Ian Hucklesby, White’s Commercial Director, to the world of SEO, which took up an entire wall and afternoon. Through a haze of confusion filled with crawlers and matrices, I knew that if I was ever going to survive in this world, White was the place to be. From studying White as part of my Master's degree in Marketing at university, it was obvious that the company was in an exciting stage. New staff, new branding, and new clients were all contributors to the progress White has made and now I was on this fast moving bandwagon. Having gone through so many development stages, White has so much potential and is strategically placing itself in a very competitive and powerful position. Having worked in other companies before, it is exciting to work agency-side and witness everything that goes on behind the scenes. The extent of analysis, knowledge and understanding required for this job was really demonstrated in a pitch in London for a high-end hotel, with one of our senior specialists. While only there to observe, I learned so much not only about PPC and SEO but also on how to pitch to potential clients. Needless to say we won the pitch, which once again proved to me that this is an agency that really knows its stuff.

 

Looking Forward

There's a saying that everything happens for a reason and my experiences to date have proven this. I think this company has an extremely talented team that works well together and is going from strength to strength. White is undeniably raising the bar of the digital marketing world and even though my experience here is limited, I can safely say with confidence….watch this space!

The post Back to School: Lesson 1- What is SEO? appeared first on White.net.

Seth's Blog : Marketing used to be what you say

 

Marketing used to be what you say

Now, marketing is what you do. What you make. How you act. The choices you make when you are sure no one is looking. 

       

 

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marți, 2 septembrie 2014

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Cold War About to Turn Hot? Putin Warns Europe "I can Take Kiev in Two Weeks"; WW III Not a Good Option

Posted: 02 Sep 2014 05:36 PM PDT

People keep asking why I have a spotlight on Ukraine and not Gaza.

It should be obvious. The economic impact of the Civil war in Ukraine has a huge European economic interest.

Moreover, risk of further escalation involving Russia and the US looms large.

The Financial Times reports Debate Heats Up in US and Europe Over Arming Kiev.
As Barack Obama departs for Europe to attend a crucial NATO summit, the US president is facing fresh pressure at home to provide weapons to Ukraine, including from senior members of his own party.

European governments are also considering the wisdom of sending arms to Ukraine, with many leaders from eastern Europe eager to do more to help Kiev, while western European governments remain cautious.

"I think it is very important to recognise that a military solution to this problem is not going to be forthcoming," Mr Obama said last week.

But even leading members of his own party have joined Republican critics to call for more assistance to Kiev. Adam Smith, the leading Democrat on the House Armed Services Committee, said at the weekend that the US should help Ukraine build "a more capable fighting force to resist" Russia.

Robert Menendez, the Democrat who chairs the Senate foreign relations committee, said the recent Russian actions were "a watershed moment" in the Ukraine crisis and added that for the White House the issue of sending heavy weapons "may be very well on the table right now".
NATO to Endorse 4,000 Man Rapid Response Force

Yesterday, the New York Times reported NATO Weighs Rapid Response Force for Eastern Europe
As Ukrainian leaders warned on Monday of "a great war" with Russia, NATO leaders meeting in Wales this week were expected to endorse their most concrete response yet to increased Russian military intervention in Ukraine: establishing a rapid-reaction force capable of deploying quickly to Eastern Europe, officials of the alliance said.

The new force of some 4,000 troops, capable of moving on 48 hours' notice, will be supported with logistics and equipment pre-positioned in Eastern European countries closer to Russia, with an upgraded schedule of military exercises and deployments that are intended to make NATO's commitment of collective defense more credible and enhance its deterrence.

The agreement is planned as the substantive centerpiece of the NATO meeting, which will take place Thursday and Friday and will be attended by President Obama, who will also stop in Estonia before the summit meeting. His aides said the trip was intended to highlight the United States' commitment to NATO, and the alliance's determination to protect all 28 members from aggression — from Moscow or elsewhere.
Great War With Russia

Ukraine of course wants that "rapid response force" on account of the "great war with Russia".

Fortunately (at least for now) president Obama and chancellor Angela Merkel seek a non-military solution, but warmongers in the US are beating the drums of war at every turn.

Putin's Reaction

Meanwhile, Putin's reaction to escalating NATO talk has been to warn Ukraine "I can Take Kiev in Two Weeks".
Vladimir Putin has boasted to European leaders that his forces could sweep into Kiev in two weeks if he wanted. The Russian president reportedly made the threat to the European Commission president during talks on the Ukraine crisis.

Mr Putin told Jose Manuel Barroso: "If I want to, I can take Kiev in two weeks," Italy's La Repubblica newspaper reported, implying this could be the result if the EU stepped up sanctions against Russia.

His comments, relayed by Mr Barroso to colleagues at last weekend's EU summit, emerged as NATO announced it would build a new "spearhead" rapid reaction force of up to 4,000 troops that can be flown into eastern Europe in 48 hours to respond to possible Russian aggression.
No Doubts

I have no doubt that Russia could take Kiev in two weeks if it wanted to, but I am equally sure he has no desire to do so.

Taking and holding hostile territory is a losing action. It never works in the long haul. And besides, Russia could not possibly afford the upfront cost, and that is something Putin no doubt understands.

Besides, any such statement, is likely taken mightily out of context, and tossed about now by Barroso for political purposes.

ZeroHedge reports "Russia ready to release audio recording of conversation between President Vladimir Putin and European Commission President Jose Barroso, Interfax cites Russian ambassador to European Union as saying."

Involvement vs. Invasion

I took a lot of email flack for my statement made on August 28: "I am convinced this talk about direct military involvement by Russia is 90% hype if not more. A few soldiers captured and paraded about does not change that picture."

That quote is from my post Jane's Defense Caught With Pants Down: Ukraine Admits Rebel Counteroffensive, Including March to the Sea.

I stand by what I said. Few if any reports from Kiev are credible.

For example, the LA times reports Russians invading, says Ukraine leader; tanks reported crossing border.

Where's the pictures? Wouldn't US intelligence offer any proof? How can anyone believe this crap? And such stories come out day after day for weeks on end.

Jacob Dreizin Comments

I put reader Jacob Drezin, a US citizen who speaks Russian and reads Ukrainian on the hot seat today, asking for his thoughts. He replied.
This is not really about credibility. It's more about the definition of "Russian involvement" and "Russian invasion."

As for the recent incident with the 10 or so captured Russian paratroopers, it is clear based on the information provided by the Ukrainians themselves that this was not an invasion. I've just watched a half-hour "interview" of the Russian soldiers, recorded by a Ukrainian TV crew, where their squad leader claims he and his men were on a training mission, got lost and separated from their unit, and were then shocked to find themselves under live artillery fire, after which they wandered around and realized they had crossed the border when they came across a Ukrainian force.

Here's a video interview of the paratroopers.

The above video is consistent with other videos posted by the Ukrainians in which the men were interrogated individually. Thus, Kiev's claim that they were attacked and taken prisoner 20 kilometers inside Ukraine is not supported by the "evidence" provided.

Moreover, it is clear from the above video that the Russians did not even know they were accused of invading Ukraine when they were "interviewed." The task of the interrogators was clearly to get them to talk as much as possible and then to take individual statements, out of context, and pass those over to the Western media. So I think this is just another lie that has been sold to the world.

Nonetheless, based on closely tracking this conflict since it started, I am certain of the following:

  1. At least 80% of the rebels are locals, that is, Ukrainian citizens/residents.
  2. Russian military units (i.e. divisions, brigades, battalions) are not fighting in Ukraine. Any media outlet or government agency that feels differently needs to provide the names/designations of the units, where they crossed the border, and where they are currently deployed.
  3. Russians who have come across the border have been integrated into rebel units. That includes both neophytes and seasoned veterans, as well as a small number of individuals "on holiday" from various Russian government bodies. Many of these volunteers are Ukrainian citizens who were residing in Russia.
  4. The lack of any credible, significant, publicized signals intercepts between the rebels and Russia suggests that any training/advising by the Russians is being done at arms-length, not in a "direct from Moscow" manner.
  5. The rebels have received large quantities of arms and munitions from Russia, probably through semiofficial, "surplus" channels. However, they have received even larger quantities of arms and munitions from Ukrainian forces, a process that has accelerated since the start of the current rebel counteroffensive. Here are a couple of vides. The first video shows four abandoned tanks and a BMP.  The second video shows a large number of abandoned vehicles as well as mountains of artillery/mortar munitions.
  6. The current poor predicament of the Ukrainian army has nothing to do with a sudden "Russian invasion", and everything to do with the fact that the rebels, with Russian help, had been playing the classic game of trading space for time. Then, when the Ukrainians finally overextended themselves, and the rebels were ready, the counteroffensive began. Of course, it was predictable that the Kiev regime would begin screaming "Russian invasion!" as soon as the counteroffensive began.
  7. All the hype about a "Russian invasion" in the NY Times, Washington Post, and other leading sources in the last few days, has been little more than a shameless transcript of statements from Kiev, with no critical thought and almost nothing in the way of an opposing viewpoint. It is a sad testament to the effect of years of budget cuts on the mainstream media flagships. And it is highly convenient, given that they completely missed preparations for the counteroffensive.
  8. As of now, the civilian death toll in Donetsk and Lugansk (mostly caused by shelling of rebel-held areas) is roughly equal to the entire Palestinian death toll (both Hamas and civilian) from the recent war in Gaza. Yet, the Gaza deaths were a terrible crisis, and daily grist for the United Nations, no one at any high level seems to care about what Ukrainian artillery is doing in Donetsk and Lugansk.
  9. The reason that the intelligence agencies, foreign ministries, and national leaders of the U.S., Britain, do not accuse Russia of actually "invading" Ukraine, is the evidence is simply not there. Russia will never invade Ukraine, just like the U.S. never invaded Syria, Nicaragua, Tibet, Guatemala, etc. 
  10. Putin, Lavrov, etc. naturally deny everything, just like Uncle Sam denies everything. You can't trust any government. However, the Russians have been consistent in their approach whereas the Europeans (in particular) are just zigzagging along for the ride.
  11. Russia is not alone in this mess. The U.S. and the West in general are helping Kiev fight this war. We know that the U.S. cheered on as the opposition broke its power-sharing agreement with Yanukovich and carried out its February coup. We know that the U.S. State Department handpicked the Ukrainian leadership immediately after the February coup. We know that a former top diplomat to the U.S. (Valentyn Nalyvaichenko) was appointed as head of the Ukrainian Security Service immediately after the February coup. We know that the CIA then set up a large operation in Kiev, to share information with the Ukrainians and probably help guide their military operations. We know that the head of the CIA visited Ukraine under a fake passport in April. We know that a U.S. surveillance drone was forced down over Crimea shortly before that. We know that the Ukrainian state would collapse immediately were it not for IMF dollars that were ultimately approved in Washington. So there may be a lot here that we're not hearing about from our honest, objective media.
The New Cold War and the Necessity of Patriotic Heresy

On August 12, Stephen Cohen wrote an excellent column for The Nation: The New Cold War and the Necessity of Patriotic Heresy.

Cohen says "US fallacies may be leading to war with Russia." Unfortunately, it may play out that way.

His very lengthy article starts out slow but ends strong. Let's jump to sentences I pieced together from the middle where I sympathize with points he makes.
Recalling the American adage, "There are two sides to every story," I have sought to explain Moscow's view of the Ukrainian crisis, which is almost entirely missing in mainstream coverage. As a result, I have been repeatedly assailed—no less in purportedly "liberal" publications—as Putin's No. 1 American "apologist," "useful idiot," "dupe," "best friend" and, perhaps a new low in immature invective, "toady." I expected to be criticized, as I was during nearly twenty years as a CBS News commentator, but not in such personal and scurrilous ways.

None of these character assassins present any factual refutations of anything I have written or said. They indulge only in ad hominem slurs based on distortions and on the general premise that any American who seeks to understand Moscow's perspectives is a "Putin apologist" and thus unpatriotic. Such a premise only abets the possibility of war.

Some of these writers, or people who stand behind them, are longtime proponents of the twenty-year US policies that have led to the Ukrainian crisis.

The perils and costs of another prolonged cold war will afflict our children and grandchildren. If nothing else, this reckless policy, couched even at high levels in relentless demonizing of Putin, is already costing Washington an essential partner in the Kremlin in vital areas of US security—from Iran, Syria and Afghanistan to efforts to counter nuclear proliferation and international terrorism.
Fact vs. Fallacy

Cohen offers a nice fact vs. fallacy comparison towards the end of his article.
Fallacy No. 1: Ever since the end of the Soviet Union in 1991, Washington has treated post-Communist Russia generously as a desired friend and partner, making every effort to help it become a democratic, prosperous member of the Western system of international security. Unwilling or unable, Russia rejected this American altruism, emphatically under Putin.

Fact: Beginning in the 1990s, again with the Clinton administration, every American president and congress has treated post-Soviet Russia as a defeated nation with inferior legitimate rights at home and abroad. This triumphalist, winner-take-all approach has been spearheaded by the expansion of NATO—accompanied by non-reciprocal negotiations and now missile defense—into Russia's traditional zones of national security, while in reality excluding it from Europe's security system. Early on, Ukraine, and to a lesser extent Georgia, were the ultimate goals. As an influential Washington Post columnist explained in 2004, "The West wants to finish the job begun with the fall of the Berlin Wall and continue Europe's march to the east.… The great prize is Ukraine."

Fallacy No. 2: There exists a nation called "Ukraine" and a "Ukrainian people" who yearn to escape centuries of Russian influence and to join the West.

Fact: As every informed person knows, Ukraine is a country long divided by ethnic, linguistic, religious, cultural, economic and political differences—particularly its western and eastern regions, but not only. When the current crisis began in 2013, Ukraine had one state, but it was not a single people or a united nation. Some of these divisions were made worse after 1991 by corrupt elite, but most of them had developed over centuries.

Fallacy No. 3: In November 2013, the European Union, backed by Washington, offered Ukraine's President Viktor Yanukovych a benign association with European democracy prosperity. Yanukovych was prepared to sign the agreement, but Putin bullied and bribed him into rejecting it. Thus began Kiev's Maidan protests and all that has since followed.

Fact: The EU proposal was a reckless provocation compelling the democratically elected president of a deeply divided country to choose between Russia and the West. So too was the EU's rejection of Putin's counter-proposal of a Russian-European-American plan to save Ukraine from financial collapse. On its own, the EU proposal was not economically feasible. Offering little financial assistance, it required the Ukrainian government to enact harsh austerity measures and to sharply curtail is longstanding economic relations with Russia. Nor was the EU proposal entirely benign. It included protocols requiring Ukraine to adhere to Europe's "military and security" policies, which meant in effect, without mentioning the alliance, NATO. In short, it was not Putin's alleged "aggression" that initiated today's crisis but instead a kind of velvet aggression by Brussels and Washington to bring all of Ukraine into the West, including (in the fine print) into NATO.

Fallacy No. 4: Today's unfolding civil war in Ukraine was caused by Putin's aggressive response to Maidan's peaceful protests against Yanukovych's decision.

Fact: In February 2014, radicalized Maidan protests, strongly influenced by extreme nationalist and even semi-fascist street forces, turned violent. Hoping for a peaceful resolution, European foreign ministers brokered a compromise between Maidan's parliamentary representatives and Yanukovych. It would have left him as president of a coalition, reconciliation government until new elections in December 2014. Within hours, violent street fighters aborted the agreement. Europe and Washington did not defend their own diplomatic accord. Yanukovych fled to Russia. Minority parliamentary parties representing Maidan and predominantly western Ukraine, among them Svoboda, an ultra-nationalist movement previously anathematized by the European Parliament as incompatible with European values, formed a new government. They also nullified the existing constitution. Washington and Brussels endorsed the coup, and have supported the outcome ever since. Everything that followed, from Russia's annexation of Crimea and the spread of rebellion in southeastern Ukraine to the civil war and Kiev's "anti-terrorist operation," was triggered by the February coup. Putin's actions have been mostly reactive.

Fallacy No. 5: The only way out of the crisis is for Putin to end his "aggression" and call off his agents in southeastern Ukraine.

Fact: The underlying causes of the crisis are Ukraine's own internal divisions, not primarily Putin's actions. The primary factor escalating the crisis since May has been Kiev's "anti-terrorist" military campaign against its own citizens, now mainly in the Donbass cities of Luhansk and Donetsk. Putin influences and no doubt aids the Donbass "self-defenders." Considering the pressure on him in Moscow, he is likely to continue to do so, perhaps even more, but he does not control them. If Kiev's assault ends, Putin probably can compel the rebels to negotiate. But only the Obama administration can compel Kiev to stop, and it has not done so.

In short, twenty years of US policy have led to this fateful American-Russian confrontation. Putin may have contributed to it along the way, but his role during his fourteen years in power has been almost entirely reactive—indeed, a complaint frequently lodged against him by hawks in Moscow.
First Casualty in War is the Truth

Let's wrap up some loose ends about invasions, proxy wars, Russian troops, and Russian tanks.

It is in Ukraine's best interest to lie, so Kiev does.

That does not mean Putin is telling the truth, but for merely looking at the other side of the story, people comment that I am a Russian agent, that I am blinded by Putin, and I don't know what is going on.

For every step in this civil war, western mainstream media (and most reading it), believed all the reports out of Kiev, I didn't.

Recall Kiev statements that this war would be over by May, by June, by July, in two weeks, or whatever. We now see who was right.

Media comparisons of Putin to Hitler are both absurd and Ironic. If anyone has ties to Hitler in this mess, it's the US puppet-sponsored officials in Kiev.

Talks of "invasion" have been complete nonsense. Sadly, they are widely believed.

Everyone seems to buy every statement by Kiev about Russian troops, Russian tanks, the downing of MH17, etc. etc. Yet, every statement by Kiev has been so loaded with hype that I wonder how anyone could have believed any of it.

Understanding Putin

If you do not like Russia or Putin, no one forces you to. But that is no reason to believe Kiev.

For the record, I have no love of Putin. But I do understand where he is coming from.

The other day, someone sarcastically asked me to explain Putin.

Here goes: Putin does not want NATO in Ukraine. Similarly, the US did not want missiles in Cuba and launched a stupid war on Iraq.

I do not use those as "two wrongs make a right" as some have claimed. Rather, I make this point: The US acted in its best interest (in the case of Iraq what it foolishly believed was in its best interest), and Russia is doing the same now.

Countries act in their best interest. Period.

The corollary is equally important: Sanctions will not do a damn thing to stop a country from doing what it believes is in its best strategic interests.

WW III Not a Good Option

Sending military supplies to Ukraine will not do any good either. Russia will give more support to the rebels, possibly even to the point of an actual invasion.

President Obama and leaders in Europe may not like those simple facts, but it's not going to change them one bit.

World War III is not a good way to end a civil war in a country that was haphazardly pieced together in the first place.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

US Manufacturing ISM Expansion Continues for 15 Consecutive Months

Posted: 02 Sep 2014 11:06 AM PDT

US manufacturing continued its expansion for the 15th consecutive month. It has been in expansion since May of 2013 when it registered 50.0.

Manufacturing ISM Index



For details, lets turn to the August 2014 Manufacturing ISM® Report On Business®.

ISM at a Glance

Series DataAug IndexJul IndexPercentage Point ChangeDirectionRate of ChangeTrend (Months)
PMI™ 59.0 57.1 +1.9 Growing Faster 15
New Orders 66.7 63.4 +3.3 Growing Faster 15
Production 64.5 61.2 +3.3Growing Faster 6
Employment 58.158.2 -0.1 Growing Slower 14
Supplier Deliveries 53.9 54.1 -0.2 Slowing Slower 15
Inventories 52.0 48.5 +3.5 Growing From Contracting1
Customers' Inventories 49.0 43.5 +5.5 Too Low Slower33
Prices 58.0 59.5 -1.5 Increasing Slower13
Backlog of Orders 52.5 49.5 +3.0 Growing From Contracting 1
Exports 55.0 53.0 +2.0Growing Faster 21
Imports 56.0 52.0
+4.0
Growing Faster 19


This was a solid report.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Ukraine to Need Another $19 Billion from the IMF

Posted: 02 Sep 2014 10:29 AM PDT

Ukraine is already on the hook to the IMF to the tune of $16.7 billion. Today the IMF reassessed: Ukraine Crisis Hits Economy and Could Require Bigger loan.
In its first full review since agreeing a $16.7bn standby facility earlier this year, the IMF warned that the two main risks it had foreseen – intensification of the conflict in the east and a natural gas shut-off by Russia – had materialised.

If fighting continued in eastern Ukraine at the same level throughout 2015, it added, Ukraine would need additional financing of $19bn to shore up its central bank reserves.

"I am afraid that this should be the IMF's base case. The original IMF programme was built on totally unrealistic assumptions," said Tim Ash, economist at Standard Bank, in a note to clients. "The main question being asked by investors is when, not if, Ukraine will be forced to restructure/reprofile its debt ratios."

Under its base case, it forecast Ukraine's economy would contract 6.5 per cent this year – making it one of the worst performers in the world – rather than the 5 per cent previously assumed. Growth next year would be only 1 per cent, down from 2 per cent previously forecast, even if the fighting stopped soon.

If fighting continued through the rest of this year and 2015, however, the economy would contract by 7.3 per cent this year and another 4.2 per cent next year.

Many experts had warned when the IMF-led bailout was agreed that it was based on the most optimistic assumptions, with western political leaders anxious to support the new government in Kiev. But the fund conceded that Ukraine now faced "heightened geopolitical tensions and deepening economic crisis".

"Intensification of the conflict in the east and escalation of the gas dispute with Gazprom, two of the key risks identified at the time of the programme request, have materialised," it added. These had affected "confidence, balance of payment flows, economic activity and budget execution" and had led to larger-than-anticipated deposit outflows and bigger depreciation of the national currency, the hryvnia.
Inquiring minds may be wondering how Ukraine can possibly pay this back. The answer is they can't and won't. Alternatively Ukraine will be in an economic depression for decades if they try.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

France Needs a "Thatcher Moment" But First a Depression

Posted: 01 Sep 2014 11:32 PM PDT

It is amusing reading day in and day out the Keynesian cure for what ails Europe, especially France.

Consider France. Public spending amounts to 57% of French GDP, yet Keynesians want still more. The sad irony is that 100% would not be enough. In fact, it would make matters worse.

France suffers from too much government spending and too much government interference everywhere one looks.

The Problem

On Sunday, in Eurozone Currency Dispute Intensifies: France Wants More ECB Action to Correct Overvalued Euro, Germany Doesn't I summed up the problem.
Inflation Won't Cure France

Contrary to popular belief, inflation will not spur consumer spending. Nor will inflation create any jobs or cause wage inflation.

Nonetheless, France demands the ECB wizards fix something that cannot be fixed by monetary policy.

Problem number one is the eurozone itself. The euro is fatally flawed. In addition, France's problem is that it is not competitive with Germany and arguably even Spain, not that the Euro is too high.

France desperately needs structural reforms.

  • It is nearly impossible to fire someone in France, so businesses are reluctant to hire. 
  • Government and union rules on everything are sheer madness.  
  • France seeks to save local bookstores by taxing online retailers and elimination of free shipping. 
  • Agricultural subsidies to save inefficient French farms (at great expense to the rest of Europe) are inane. 
  • Pension rules need fixes, and the retirement age needs to increase.
  • The "French way of life" is incompatible with rising productivity, especially on a relative basis, so France is increasingly left behind.

How is QE supposed to fix all that? It can't and it won't, but it increasingly looks as if the ECB may give it a try.
The Solution

Yesterday, Steen Jakobsen, chief economist for Saxo bank, summed up the solution: France needs a crisis and a "Thatcher Moment".

Via email ...
French President François Hollande unveiled his new government under Prime Minister Manuel Valls on August 26, and there have been a few changes. While most senior ministers have retained their positions, economic minister Arnaud Montebourg was replaced by Emmanuel Macron, a former investment banker and economic adviser at the Elysée.

Hollande is already the most unpopular president in French history so he is not risking much by removing a political opponent like Montebourg (who should never have been part of a so-called reform program to begin with). Montebourg is a man of the old school and of old ideas: Among other things, he titled himself "Minister of Industrial Resurrection." His ideas included threatening to fine businesses for each job they failed to create and speaking against globalisation.

The problem for President Hollande and any reform efforts is that, as much as removing Montebourg was a victory for his economic strategy, it was also a loss in terms of his political ability to rule both his party and the French state. We often forget that economic policy without political backing is like skiing without snow: Policy needs political anchoring.

The supply-side economics and ideas of Prime Minister Valls are good, but they are not sufficient to stop the "rotting of France". More and more observers argue that what France needs is either an European Central Bank that goes into full Quantitative Easing mode, a France that pushes for fiscal expansion, or even both. Not only is that short-sighted, it´s also wrong: France needs a new political system, a new tax regime, a less bloated government sector, and fewer subsidies. France is not lost, it´s just disorientated and lacks purpose.

France is its own worst enemy. It believes in old virtues and ideas from a time gone by. Dirigisme, the French version of socialist capitalism, has failed. In its place there needs to appear a a robust commitment to its strong and well-educated workforce. France has the ability to innovate and its early stage small- and medium-enterprise support ranks among the best in the world. Unfortunately, its tax policy, its inability to attract capital and — more importantly — its dismal return on capital are significant impediments to new growth or any reforms.

France needs a Thatcher moment, with a new leader brave enough to get elected on a mandate for change. It needs a leader brave enough to tear down a political system that generates macro- rather than micro-scaled policies, an elitist society with too many incentives for bad behaviour and disincentives for private initiative, innovation and hard work. With or without Hollande, France just doesn't seem ready to change yet. That is why we need a deep recession and even a depression before we see real change. Real changes can only emerge from a true crisis.

The good news is that France that has never been closer to this mandate for change than now, if only because we are quickly approaching the point where things can't get any worse. French history is full of examples of crisis yielding quickly to dramatic change. The one that comes most quickly to mind is when King Louis XVI lost his monarchical powers during the French revolution. He inherited an enormous state debt (sound familiar?) and tried a number of policy moves, but in the end the crisis overwhelmed him, and he and his Ancién Regime subordinates lost not only their power, but their heads.

It's time for a 21st century revolution in France. Dirigisme is dying. Vive la France.
Good News

The good news: A depression in France may be just around the corner.

Bad News

The bad news: The extremists waiting in the wings leave a lot to be desired.

Practical View

Socialists have so messed up the country in every way, that heads need to roll (just not literally as during the French revolution). Thus, any major shakeup could be a good thing, even if a free-market candidate is not the first one to surface in a new power shift.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com