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There was some good news and some not so good news in the Fed's latest annual Report on the Economic Well-Being of U.S. Households. First the good news. The report, based on the Board's fourth annual Survey of Household Economics and Decisionmaking conducted in October 2016, presents a "picture of improving financial well-being among Americans", at least according to the report (read on to see if this is merited). Overall, 70% of the more than 6,600 respondents said they were either "living comfortably" or "doing okay," up 1% from 2015 and up 8% from the first survey results in 2013.

Now, the not so good news. Nearly eight years into an economic recovery, nearly half of Americans didn’t have enough cash available to cover a $400 emergency. Specifically, the survey found that, in line with what the Fed had disclosed in previous years, 44% of respondents said they wouldn’t be able to cover an unexpected $400 expense like a car repair or medical bill, or would have to borrow money or sell something to meet it. Troubling as this statistic remains, the overall share of adults who would struggle to come up with $400 in a pinch has declined by 2% from the last survey conducted in 2015, and down 6% since 2013. Of the group that could not pay in cash, 45% said they would go further in debt and use a credit card to pay off the expense over time. while a quarter would borrow from friends of family, and another 27% just couldn’t pay the expense. Others would turn to selling items or using a payday loan.

The breakdown was largely by education attainment: 79% of those with at least a bachelor’s degree said they would still be able to pay all of their other bills in full if hit with a $400 charge. Just 52% of those with no more than a high school diploma said the same. Just as concerning were other findings from the study: just under one-fourth of adults, or 23%, are not able to pay all of their current month’s bills in full while 25% reported skipping medical treatments due to cost in the prior year. Additionally, 28% of adults who haven’t retired yet reported to being grossly unprepared, indicating they had no retirement savings or pension whatsoever.

News reports from the state party convention in Sacramento over the weekend were dominated by the likely (pending a painstaking review) close victory of machine guy Eric Bauman over insurgent Kimberly Ellis for state party chair. Overshadowed by those fireworks, though, Palestinian rights supporters steered to passage a groundbreaking resolution that puts California Democrats far ahead of the national and other state parties. The resolution starts by decrying the fact that despite occasional criticism of Israel’s ongoing occupation, successive U.S. administrations have failed to take “actual steps to change the status quo and bring about a real peace process.” It warns about inflammatory moves by the Trump administration and notes that they are encouraging even more illegal settlement building and anti-democratic measures by Israel’s government. Notably, the resolution does not pay lip service to the “two-state solution” mantra. Nor does it set a tone of symmetry in the existing relationship between Israel and Palestine, or prescribe better behavior by both sides equally.

nstead, it puts California Democrats on record as favoring “a U.S. policy that would work through the United Nations and other international bodies as well as with Israel and the representatives of the Palestinian people for a just peace based on full equality and security for Israeli Jews and Palestinians alike, human rights and international law.” And it quotes from Bernie Sanders’ 2016 message to AIPAC: “Peace also means security for every Palestinian. It means achieving self-determination, civil rights and economic well-being for the Palestinian people.” Finally, the resolution tackles the spate of campus crackdowns on Palestine rights advocates and federal and state legislative measures aimed at stigmatizing and suppressing criticism of Israel, especially through demonization of boycott and divestment campaigns: The party now “rejects any effort to restrict or discourage open public discourse on issues surrounding Israel and Palestine; disavows conflation of criticism of a country’s policies with hatred of its people; but also opposes anti-Semitic or Islamophobic language brought into the debate and opposes any attempt to restrict or penalize those who exercise their right to express their views through nonviolent action to effect change.”

September 27, 2017  — Today’s media reports revealed that the UN High Commissioner for Human Rights began sending letters two weeks ago to 150 companies in Israel and around the globe, warning them that they could be added to a database of complicit companies doing business in illegal Israeli settlements based in the occupied Palestinian West Bank, including East Jerusalem. The letters reminded these companies that their operations in and with illegal Israeli settlements are in violation of “international law and in opposition of UN resolutions.” They also requested that these companies respond with clarifications about such operations. According to senior Israeli officials, some of the companies have already responded to the UN High Commissioner for Human Rights by saying they won’t renew their contracts or sign new ones in Israel. “This could turn into a snowball,” worried an Israeli official. Of the 150 companies, some 30 are American firms, and a number are from nations including Germany, South Korea and Norway. The remaining half are Israeli companies, including pharmaceutical giant Teva, the national phone company Bezeq, bus company Egged, the national water company Mekorot, the county’s two biggest banks Hapoalim and Leumi, the large military and technology company Elbit Systems, Coca-Cola, Africa-Israel, IDB and Netafim. American companies that received letters include Caterpillar, Priceline.com, TripAdvisor and Airbnb. The Trump administration is reportedly trying to prevent the list’s publication.

Omar Barghouti, co-founder of the BDS movement, commented, After decades of Palestinian dispossession and Israeli military occupation and apartheid, the United Nations has taken its first concrete, practical step to secure accountability for ongoing Israeli violations of Palestinian human rights. Palestinians warmly welcome this step. We hope the UN Human Rights Council will stand firm and publish its full list of companies illegally operating in or with Israeli settlements on stolen Palestinian land, and will develop this list as called for by the UN Human Rights Council in March 2016. It may be too ambitious to expect this courageous UN accountability measure to effectively take Israel “off the pedestal,” as South African anti-apartheid leader Archbishop Desmond Tutu once called for. But if implemented properly, this UN database of companies that are complicit in some of Israel’s human rights violations may augur the beginning of the end of Israel’s criminal impunity.

Senate Republicans are reportedly banking on the testimony of a "secret informant" to deepen their investigation into Hillary Clinton's role in the 2010 sale of uranium assets to Russia, Reuters reported Thursday. The GOP's source — a former FBI informant and lobbyist for the U.S.-based unit of Rosatom, a Russian-owned nuclear power company — will appear before the upper chamber as part of the probe into the so-called Uranium One deal. Although the Senate committee did not reveal the witness' name, former lobbyist William D. Campbell identified himself to Reuters. "I have worked with the Justice Department undercover for several years, and documentation relating to Uranium One and political influence does exist and I have it," Campbell said. Campbell was once a "star witness" in an FBI case against a Rosatom, until his credibility and motivations as an informant were called into question by defense attorneys. President Trump has repeatedly claimed that Uranium One's sale was approved by Clinton's State Department in exchange for donations to the Clinton Foundation, and deal skeptics point to the fact that the Clinton Foundation received $145 million in donations from owners of Uranium One. In a statement to Reuters, Rosatom noted that the State Department is only one of nine government agencies that had to approve the sale.

RICS countries are discussing the possibility of establishing a single gold trade system, First Deputy Chairman of Russia’s Central Bank Sergey Shvetsov said Friday.

"The traditional (trade) system based in London and partially in Swiss cities is becoming less relevant as new trade hubs are emerging, first of all in India, China and South Africa. We are discussing the possibility to establish a single (system of) gold trade both within BRICS and at the level of bilateral contacts," he said, adding that this system may serve as a basis for further creation of new benchmarks. According to Shvetsov, the Bank of Russia has already signed a memorandum on development of bilateral gold trade with Chinese colleagues. The regulator plans to take first steps towards formation of a single trade system with the People’s Republic of China in 2018, he added. "We assume that trade and clearing links should be established. The point is that gold buyers should decide on the place of purchase," the official said, adding that trade links would enable market participants to make deals on international exchanges via the central counterparty.

Months after Russia became the first country to announce the creation of a state-backed Cryptorouble, Venezuela has followed suit, announcing the creation of El Petro, a state-sanctioned cryptocurrency to be backed by Venezuela’s extensive reserves of crude oil. Venezuela has already broken free of Dollar dependence months ago when Caracas announced it would be trading its oil using China’s Petroyuan. Venezuelan President Nicolas Maduro also stated that he would like to begin trade with Russia in the Rouble. With Venezuela heavily sanctioned by the United States, El Petro looks to be another tool which Venezuela can use to continue and conduct international commerce without relying on Dollar based financial institution.

Crucially, while existing Cryptocurrencies tend to create their initial value through an arithmetic process called “mining”, leaving them heavily subject to market fluctuation, El Petro will be backed by a known commodity, oil, thus giving it a clear advantage for risk-averse investors. While the world’s most popular cryptocurrency Bitcoin, has seen its value skyrocket against the Dollar, some remain unconvinced of its long-term prospects for stability. A currency, backed by oil would, by contrast, ostensibly fluctuate in accordance with the well established global price of Brent Crude.

An official oil-backed cryptocurrency could work in tandem with Russia’s soon to be launched Cryptorouble, a digital currency which will ostensibly be backed by the vast resources of the Russian state. With western governments ambivalent about how to treat existing cryptocurrencies, Russia and Venezuela have taken the lead to both normalize cryptos while backing them by well-known assets.

While Trump's Twitter activity from yesterday continues to drive media and political outrage, especially in the UK, and with the focus of the frenzied coverage being that the president retweeted a far-right U.K. leader's "anti-Muslim videos", there is actually something much more interesting concerning the context to the “Muslim Destroys A Statue Of Virgin Mary” video. That particular video shared by the president is from 2013 and shows a Free Syrian Army (FSA) commander named Omar Gharba destroying a Virgin Mary statue as the group invaded a Syrian Christian town. In a geopolitical and deeply ironic twist demonstrating the absurdity and contradictions of US foreign policy, the radical Islamist commander was actually supported by the United States at the time as part of the FSA, which the media and US government deemed "moderate".  So a sitting US president shared a video which reveals a Syrian "rebel" fighter committing war crimes who was part of one of the very groups backed by the CIA as official US policy under the Obama administration. Of course it is likely that Trump himself is not fully aware of this, yet the astounding geopolitical irony in this should not be missed, even as public outrage is reduced to merely discussing "anti-Muslim bigotry" and whether or not Trump is being "presidential".

nd while multiple media outlets, for example NPR, continue to claim the videos are "unverified" and "have no context" or are of "murky origins" (as the Washington Post wrongly claims), this particular video especially was widely shared and discussed among the world's top Syria analysts and Middle East scholars at the time. The video was taken in 2013 and shows the Wahhabi cleric and FSA commander smashing the Christian statue in connection with the US-backed group's prior attack on Yakubiya in Idlib province. The book, The Islamic State: Combating The Caliphate Without Borders, authored by counter-terrorism experts Yonah and Dean Alexander, gives his full name as Omar Gharba al-Khojji and like vast numbers of FSA fighters he eventually jointed ISIS (some online sources alternately list his name as Omar Raghba).

akubiyah was a mostly Christian village principally comprised of Armenian Orthodox and Catholic churches which after being taken over by the FSA was subsequently held by ISIS. The local Christians saw no distinction between the invading FSA and ISIS fighters as it was primarily the US-backed FSA which began massacring Christians and looting churches. Even the US government funded Voice of America news had this to say based on an interview with a Christian survivor: Christian refugees described to VOA the execution of a half dozen of their co-religionists in the northwestern village of al-Yakubiye, in Idlib province, by Sunni Muslims aligned with the Western-backed Free Syrian Army. Rahel, a 45-year-old former teacher, said, “Al Nusra didn’t come to our village; the people who came were from villages close by, and they were Free Syrian Army.”   ...Nearly a third of Syria’s Christians, an estimated 600,000, have fled the country. Before the war, Christians accounted for about 10 percent of Syria’s population of 22 million. And The Daily Beast also confirmed at the time that "nearly all Christians have fled [Yakubiyah] after half a dozen were executed with their heads chopped off and about 20 more were kidnapped" by the US sponsored FSA. Furthermore, an October 2013 report in Arabic media confirmed that, Terrorists belonging to al-Nusra front broke into homes in Yakubiyah in Syria's Idlib province, killed a Chrisitan man and destroyed a Virgin Mary statue. Upon arrival at a house that had the statue of virgin Mary, Wahhabi cleric, Omar Gharba' carried the statue of the Virgin Mary after it was taken over by militants from the "Islamic State in Iraq and the Levant" (ISIL) and broke it by throwing it on the ground. He stated that he and his fellow Wahhabis won't tolerate any form of worship except strict Wahhabism of Saudi Arabia.   "God willing, Only God will be worshipped in the land of the Levant," the terrorist who destroyed the statue said, noting that "no other idol will be worshiped after these days . We won't accept but the religion of Allah and the Sunnah of our Prophet Mohammed bin Abdullah." In 2012 and 2013 Omar Gharba's name appeared somewhat frequently in Western news reports as he was interviewed on a few occasions and presented as a "moderate" rebel, for example by BBC Arabic in 2012. The below video is one such example of Omar Gharba insisting that he and his fellow FSA militants would be tolerant and respectful of Christians and other religious minorities should they inherit power by toppling the Assad government  - though he was subsequently outed as the destroyer of the Virgin Mary statue, as the edit of the video interview makes clear.

Years late to the party, mainstream media outlets like USA Today, Reuters, and Buzzfeed are just out with "breaking" and "exclusive" stories detailing how a vast arsenal of weapons sent to Syria by the CIA in cooperation with US allies fuelled the rapid growth of ISIS. Buzzfeed's story entitled, Blowback: ISIS Got A Powerful Missile The CIA Secretly Bought In Bulgaria, begins by referencing "a new report on how ISIS built its arsenal highlights how the US purchased munitions, intended for Syrian rebels, that ended up in the hands of the terrorist group." The original study that Buzzfeed and other media are referencing comes from a UK-based independent weapons research organization called Conflict Armament Research (CAR) which has had a team of weapons and munitions experts on the ground in the Middle East for years examining arms and equipment recovered from ISIS and other terrorist groups in Iraq and Syria. Using serial numbers, crate shipping markings, and all available forensics data, the CAR experts began finding that as early as 2013 to 2014 much of the Islamic State's advanced weapons systems as well as small arms were clearly sourced to the United States and the West. “Supplies of materiel into the Syrian conflict from foreign parties - notably the United States and Saudi Arabia - have indirectly allowed IS to obtain substantial quantities of anti-armor ammunition,” states the CAR report. “These weapons include anti-tank guided weapons and several varieties of rocket with tandem warheads, which are designed to defeat modern reactive armor.”

The study further reveals that in one notable instance, a weapons shipment of advanced missile systems switched hands from US intelligence to "moderate" Syrian groups to ISIS in only a two month time period. Though the report is now evoking shock and confusion among pundits, the same weapons research group has actually published similar findings and conclusions going years back into the Syrian conflict.  For example, a previous 2014 Conflict Armament Research report found that Balkan origin anti-tank rockets recovered from ISIS fighters appeared identical to those shipped in 2013 to Syrian rebel forces as part of a CIA program. And CAR's damning publications presenting such inconvenient empirical data have been consistent for years, yet were largely ignored and suppressed by analysts and mainstream media who were too busy cheerleading US support for Syrian "rebels" cast as romantic revolutionaries in their struggle to topple Assad and his secular nationalist government. Of course, it's an old story if you've been reading Zero Hedge or the profusion of independent outlets that have long reported the truth about the covert "dirty war" in Syria since nearly the beginning. 

Even though it's now suddenly acceptable and fashionable to admit - as does one recent BBC headline ("The Jihadis You Pay For") - that the US and Saudi covert program in Syria fuelled the rise of ISIS and various other al-Qaeda linked terror groups, it must be remembered that only a short time ago the mainstream media openly mocked analysts and writers who dared make the connection between the West's massive covert Syrian rebel aid programs and the al-Qaeda insurgents who so clearly benefited. When news of the 2012 Defense Intelligence Agency report  broke, which described what it called a "Salafist principality" or "an Islamic State" as a strategic asset or buffer in Syria that could be used by the Western coalition "in order to isolate the Syrian regime", American media outlets dismissed what was labelled a "conspiracy theory" at the time in spite of the hard evidence of a US military intelligence report being made available. The Daily Beast for example mocked what it called "The ISIS Conspiracy Theory that Ate the Web" - describing those analyzing the Pentagon intelligence document as far-right and far-left loons. This occurred even as the document was taken very seriously and analyzed in-depth by some of the world's foremost Middle East experts and investigative journalists in foreign outlets like the London Review of Books, The Guardian, Der Spiegal , as well as RT and Al Jazeera.

The US Pentagon has inked plans to the White House to fight in Somalia for two more years, the New York Times reported yesterday.

According to the blueprint, the US will conduct an internal review on Somalia within 24 months to decide whether to continue fighting in the country. The news comes off the back of an escalation in counter-terrorism drone strikes in Somalia under President Donald Trump.

rump has already provided the US military and CIA broader authority to execute strikes in Somalia, considering it an “area of active hostilities”. As a result, 30 airstrikes have been executed in Somalia, with the most recent killing some 100 Somalis. Controversial raids have also taken place under Trump, with the most notable taking place in August, killing 10 civilians in southern Somalia as they ran and took cover behind banana trees. A US investigation concluded that no civilians were killed in the raid, despite human rights groups disputing the claim.

After agreeing to pay a whopping $3.9 billion in fines and restitution, Goldman Sachs has finally been freed from one of its biggest albatrosses for its international business: Malaysian prosecutors have dropped all criminal charges in the 1MDB episode.

Reuters reports that, on Friday morning local time, Malaysian prosecutors announced that they would be withdrawing criminal charges against three Goldman Sachs units accused of misleading investors over a series of bond sales worth a combined $6.5 billion which helped fund the ill-fated sovereign wealth fund 1MDB (it stands for 1Malaysia Development Berhad). The Goldman subsidiaries based in London, Hong Kong and Singapore had pleaded not guilty to criminal charges back in February and the bank has consistently denied wrongdoing, though gallons of ink have been spilled about the alleged skulduggery that reportedly involved officials as senior as CEO Lloyd Blankfein. Now, the bank needs to settle things with the DoJ, which is also pursuing a criminal investigation. The DoJ estimates that $4.5 billion was siphoned from the fund by a group of insiders led by the fugitive financier Jho Low, the alleged mastermind, and former PM Najib Razak, who received hundreds of millions of dollars in proceeds from the fraud. Late last year, the bank was reportedly on the verge of a settlement with US authorities for roughly $2 billion, but those talks have reportedly fallen apart.

In its latest budget request, the Trump administration is asking for a near-record $750 billion for the Pentagon and related defense activities, an astonishing figure by any measure. If passed by Congress, it will, in fact, be one of the largest military budgets in American history, topping peak levels reached during the Korean and Vietnam Wars. And keep one thing in mind: that $750 billion represents only part of the actual annual cost of our national security state. There are at least 10 separate pots of money dedicated to fighting wars, preparing for yet more wars, and dealing with the consequences of wars already fought. So the next time a president, a general, a secretary of defense, or a hawkish member of Congress insists that the U.S. military is woefully underfunded, think twice. A careful look at U.S. defense expenditures offers a healthy corrective to such wildly inaccurate claims. Now, let’s take a brief dollar-by-dollar tour of the U.S. national security state of 2019, tallying the sums up as we go, and see just where we finally land (or perhaps the word should be “soar”), financially speaking.

Final tally: $1.2542 trillion So, our final annual tally for war, preparations for war, and the impact of war comes to more than $1.25 trillion — more than double the Pentagon’s base budget. If the average taxpayer were aware that this amount was being spent in the name of national defense — with much of it wasted, misguided, or simply counterproductive — it might be far harder for the national security state to consume ever-growing sums with minimal public pushback. For now, however, the gravy train is running full speed ahead and its main beneficiaries — Lockheed Martin, Boeing, Northrop Grumman, and their cohorts — are laughing all the way to the bank.

The United States on Monday warned it was ready to act in Syria if needed to end chemical attacks and “inhuman suffering” as it pushed for a new 30-day ceasefire in Eastern Ghouta at the United Nations Security Council The US ambassador [Nikki Haley] recalled that President Donald Trump had ordered missile strikes on a Syrian air base in April last year in retaliation for a sarin gas attack blamed on President Bashar al-Assad’s forces.

“We also warn any nation that is determined to impose its will through chemical attacks and inhuman suffering, most especially the outlaw Syrian regime: the United States remains prepared to act if we must,” Haley said. The Russian military at least is taking the threat seriously. The chief of Russia’s armed forces has issued a warning of his own: Moscow is ready to respond if lives of the Russian servicemen are endangered, including by strikes on Damascus, head of Russia’s General Staff Valery Gerasimov said. “There are many Russian advisers, representatives of the Russian Center for Reconciliation of Opposing Sides and [Russian] servicemen in Damascus and at Syrian defense facilities,” Gerasimov stated. In case lives of Russian military personnel are put in danger, the Russian Armed Forces will respond with certain measure to both “missiles” and “lauchers” which are delivering these projectiles.

What Gerasimov is saying here is two-fold: Any strikes in and around Damascus would almost certainly endanger Russian military personnel. If that were to happen, the Russian military will take measures against any missiles, and also against launch vehicles delivering the payload. Meaning, the Russians won’t be passively absorbing US strikes. Instead they will use their potent anti-air defenses, including against any manned aircraft.

Prominent U.S. senators Bernie Sanders and Elizabeth Warren have joined watchdog groups and banking regulators in calling for a crackdown on dirty money and banks that profit from it in the wake of the FinCEN Files investigation. Sanders and Warren, former candidates for the 2020 Democratic presidential nomination who both inspired strong support on the left, called for tougher consequences for banks and their executives who move money linked to crime and corruption.

Sanders’ messages came less than a day after the International Consortium of Investigative Journalists’ release of FinCEN Files, a global investigation revealing how leading banks allowed trillions of dollars in tainted money to flow freely through the financial system. Based on more than 2,100 secret reports filed by banks to the U.S. Department of Treasury and obtained by BuzzFeed News, the investigation included more than 400 journalists in 88 countries around the world. Warren also called for a crackdown on banks that are complicit in the spread of dirty money, highlighting policy proposals that would strengthen the ability of law enforcement to combat white collar crime. Warren called for the creation of a new unit in the U.S. Treasury Department to investigate financial crimes linked to the flow of dirty money. She also pushed for the passage of the Ending Too Big to Jail Act, a law she proposed in 2018 that would make it easier to hold Wall Street executives criminally accountable when the banks they lead engage in illegal activity.

Elizabeth Rosenberg, a former sanctions official for the U.S. Treasury Department, said the revelations exposed the national security threats posed by banks’ laxity. “The FinCEN Files illustrate the alarming truth that an enormous amount of illicit money is sloshing around our financial system, and that U.S. banks play host and facilitator to rogues and criminals that represent some of America’s most insidious national security threats,” Rosenberg told the Wall Street Journal. Rosenberg urged the passage of stronger transparency laws that crack down on the use of anonymous companies, which are often used for money laundering.