Global recession back on track

US stocks have lost $1.6 trillion in value just in January. The market value of corporations worldwide continues to melt away.


The MSCI world equity index shows the post-2008 recovery stopping in mid-2014, failing in 2015 with the oil glut and mounting corporate debt, then turning to a rout in 2016 with the Fed’s rate hike and China’s slowdown.

Corporations aren’t just squeezed by the decline of their market value but also the debt they accumulated during the post-2008 easy money bonanza, which they aren’t earning enough to service any more because profits are down globally.

Credit-rating downgrades account for the biggest chunk of ratings actions since 2009; corporate leverage is at a 12-year high; and perhaps most worrisome, growing numbers of companies — one third globally — are failing to generate high enough returns on investments to cover their cost of funding.

We’ve never been in a cycle quite like this,” said Bonnie Baha, a money manager at DoubleLine Capital in Los Angeles, which oversees more than $80 billion.

Companies’ debt costs are reaching new heights. As of the second quarter, high-grade companies tracked by JPMorgan Chase & Co. incurred $119 billion in interest expenses over the last year, the most for data going back to 2000, according to the bank’s analysts.

The cost of raising and servicing capital is outweighing the returns companies get from it, a problem that Citigroup’s Financial Strategy and Solutions Group said has affected one third of all companies — the majority of which posted shortfalls in each of the past three years.

Bloomberg, January 28, 2016 


Corporations are more indebted now than they were immediately after the 2008 crash


Fully 30.5% of US capital expenditures in 2014 were in the energy sector, accounting for a major activity in the financial sector, all of which now threatens to trigger a new subprime chain-reaction of defaults with the collapse of the oil business.

A lot of that debt is the oil sector, which is being driven out of business by falling revenues after years of unprecedented debt-financed spending on expensive shale oil and deep-sea projects.  In 2014 the energy sector accounted for the highest capital expenditures in the US. It’s the new subprime credit boom, as many small companies bought fracking gear on credit with only their now-worthless patches of oil shale as collateral. Only 2% of bank loans went to frackers but subprime mortgages were also a similarly small quantity. It was the CDOs into which they were packaged and the CDSs bought to insure them against default that amplified the problem into a global meltdown. Nothing has changed since then, the banks are still setting up the same Ponzi schemes.

“The energy space was the fastest growing part of the U.S. economy post-financial crisis and now it reverses. Businesses are shuttered and people are laid off,” said Nick Sargen, who helps manage $46.2 billion as chief economist and senior investment adviser for Fort Washington Investment Advisors Inc. “There are some people beginning to worry that this thing could spread like the subprime crisis. People had said then that it was too small to matter, and then you find out there are linkages you didn’t know about.”-Bloomberg, February 1, 2016


The Jihad Industry: Where East and West DO Meet – 2

Part 2: Allons enfants du djihad



When a change of government in France interrupted the payment of 410 million euros in bribes to Saudi Defense Minister Sultan bin Abdulaziz, he got even by ordering Pakistan’s ISI to blow up the French team that had just finished assembling a sub in Karachi.

Our friend Jean-Charles Brisard isn’t done yet: In 2011, he testified to French cops about wiretaps made by Chirac’s guys of his rival Balladur’s minister of defense concerning the highly corrupt sale of warships and submarines to two jihadist powers, Pakistan and Saudi Arabia. Part of the bribes financed Balladur’s campaign but Chirac beat him anyway and opened an investigation into the shady arms deals, upon which bodies started piling up, notably when Chirac’s refusal to pay the agreed bakhsheesh got a French defense ministry team blown up by a VBIED in Karachi.

The affaire Karachi revealed the desperate lengths to which France would go to sell its expensive arms to those who could afford them, Saudi and India topping the list. Yet the enormous bribes paid – Sultan bin Abdulaziz and navy chief Fahd bin Abdullah al Saud got 10% – meant that those sales were made at a loss.

Jihad to the rescue

Sarkozy, who set up the bribes in the Karachi affair, fixed all that by hitching France to the post-9/11 neocon war wagon and taking full advantage of Obama’s “Arab Spring” that should more honestly have been called the Jihad Spring, when a handful of Arab internet kids in hoodies coached by Western government-hired nerds posed for the cameras while masses of Muslim Brotherhood zebiba-heads chanted for Sharia rule outside the frame. When the jihadis of Derna and Benghazi received arms from Egypt’s Morsi and got the signal from France, Britain, Qatar, and Saudi to start a jihad at home instead of blowing themselves up in Iraq as they had been doing in droves, Sarkozy jumped in with both feet.

Before I get to how France’s arms export problem got “fixed,” let’s look at what France did instead of paying huge bribes. What French and British special operations teams had to work with on the ground in Libya were a bunch of doped-up jihadis who had spent the past 5-6 years dreaming of blowing themselves up in Iraq to kill Shiites and crusaders, i.e. kuffar just like the NATO troops in Libya. Luckily for them, it was Qatar that did the heavy lifting:

“The principle source of support for the rebels came from ‘Q-SOC,’” the Qatari special forces, says this source, who would only be identified as a former U.S. intelligence contractor with direct knowledge of operations in Libya.

“They went west into the Nafusa mountains and provided minimal basic shooting and tactics training to individual rebel brigades. That’s why those rebels are generally in three-color desert uniforms,” the source tells Danger Room. “They also selected 100-plus western-region Libyans for small-unit leadership training, and flew them to Qatar and then back to Nafusa for the big push.”

That was just one aspect of the Qatari aid to the rebels. The Qataris, however improbably, were the first foreign military on the ground providing military training. “They have been more effective than any other nation,” a rebel military representative told the Washington Post in May. “They just haven’t boasted about it.”

Qatar provided air support, too. And while the Qataris couldn’t match the contributions of major NATO air forces, they made a massive commitment, relatively speaking.

Wired, 08.25.11

In other words, France not only helped the oil majors to regain control of Libya’s oil (or so they thought, before the country disintegrated) and the US to get rid of its biggest African headache, namely Gaddafi, who was blocking AFRICOM from getting a foothold on the continent, but it helped tiny, jihadist Qatar set sail in the big boy world of power-projection and regime-change.


Turkey’s dispatching of hundreds of Al Qaeda terrorists and Islamofascist Turkmen fighters into a Syrian Armenian town full of descendants of 1915 was ignored by Paris.

The Syrian jihad started 3 months later, in May 2011, with Turkey sending teams of terrorists into Idlib to massacre Syrian security personnel and to herd civilians over the border into “refugee camps” prepared in advance for them. France’s relations with Turkey at this time were almost non-existent. Sarkozy had declared Turkey unfit to join the EU and in December, the French parliament outlawed any discussion of the Armenian genocide, causing Turkey to break off relations.

However after bearing the brunt of Turkey’s ire, to the tune of billions in economic losses and the disruption of French military flights to Afghanistan, not a peep came from Paris when Turkish dictator Tayyip unleashed an army of Christian- and Armenian-hating terrorists into the Syrian Armenian village of Kessab in 2013, completely ethnically cleansing the place. The next year, while the Turkish-backed terrorists were still in Kessab, François Hollande paid Turkey the first French state visit in 22 years. In 2015, as Turkey turned into an openly Islamofascist dictatorship in league with ISIS and at war with its Kurdish population, France dropped all its objections to Turkey’s EU membership, allowing Turkey’s EU accession to be greatly accelerated with the opening of many new chapters. Needless to say, the method to this apparent madness from the Cartesian French is simply that Turkey is Qatar and Saudi’s main partner in the Syrian jihad.


French arms sales surpassed the wildest expectations in 2015, zooming past the projected 15 billion mark.

So what did all this servile French pandering to barbaric Gulf oil sheikhs with delusions of royalty amount to? Roughly 50 billion euros in arms sales alone, not counting oil deals and other civilian contracts, between 2010-2015. France went from losing its position as the world’s 4th arms exporter to Germany to becoming number 2 in 2015! With that came the punch-above-your-weight power multiplier of becoming a full-fledged accomplice of the US and its client Gulf sheikhs: Quite an accomplishment for Sarkozy and Hollande, who didn’t let their supposed political differences interfere with, to paraphrase Marx, the icy waters of corporate calculation. Political fortunes apparently shifted dramatically from right to left (and now soon to the extreme right) but the corporate fortunes of Thales, Safran, DCNS, Dassault, and Total continued to go from strength to strength. The unsaleable Rafale fighter that languished in hangars for over a decade suddenly became the hottest item on the market.

#Je suis chickens coming home to roost

comptoir_voltaire_660x281On Friday the 13th last, Gay Paree became Sad Paree with the shock of seeing the La haine generation of France’s marginalized car-torching Muslim suburb kids going from shooting the odd Jew or obscure satire rag cartoonist to mass-murdering anybody having a good time. The spin doctors tried to turn it into a version of the usual lone nut story: Crazy death cult sprung out of nowhere and not connected to anything we’ve done hates us ’cause we’re free. Hollande’s guys gave it another spin, saying the death cult was Assad’s fault. 90% of white Christian French people agreed with Le Pen that Islam was the death cult.


French arms sales platform

Me, I call it the cost of doing business. If you get blown up or beheaded in France, just write it up to corporate expenses. You know why arms sales in 2015 jumped way beyond the projections? The Bataclan, that’s why. When Hollande, in retaliation for the Paris massacre, loaded up the Charles de Gaulle with Rafales and went to war against ISIS, all the ditherers intimidated by the hefty price tag of the plane were suddenly sold.

Hollande knew that his jihad wouldn’t have come back to bite him like this if he had been able to convince Obama to use those Rafales against Assad in 2013, when his Saudi friends went to all that trouble to stage a false-flag sarin attack to give Obama his “red line” excuse to bomb Assad into oblivion.


What happens when a smoking-gun video turns up showing a Saudi-backed terrorist gang in gas masks shooting rockets the night of the Ghouta Sarin attack? No sweat, you just get the “expert” Edward Higgins to snort disdainfully and say “it’s obviously staged.”

Obama’s commitment issues kept him from embracing that particular tar baby, which then left Hollande no option but to tell his security services to turn a blind eye as dozens of jihadist imams recruited hundreds of Muslim banlieue kids for the Syria jihad. It’s the only way he could keep his Gulf sheikhs in a spending mood. Inevitably, a few of those home-grown throat-slitters would take a swing at the kuffars back home.


The serial scooter shooter Mohamed Merah

If all that sounds too far-fetched for you, let’s get down to brass tacks. Exhibit 1: Mohamed Merah, the Toulouse-Montauban serial shooter who killed 7 people including 3 Jewish schoolkids over 11 days in 2012. Sarkozy’s government said Merah was a lone wolf, not connected to any jihadist network, and that he was self-radicalized, never went to a mosque or talked to an imam, so he remained off the radar – all barefaced lies. He had been under surveillance since 2009 after he went to Taliban camps in Afghanistan and Waziristan. His older brother Abdelkader was caught recruiting jihadis for Iraq in 2007.


Sabri Essid the notorious jihadist of Toulouse also managed to give the flics the slip and went to chop heads in Syria.

They traveled together to Egypt in 2010 to brush up on their salafism, their excursion being booked by their brother-in-law Sabri Essid, who lives in the notorious salafist village Artigat near Toulouse and was sentenced to 5 years in 2007 for sending jihadis to Iraq, which didn’t prevent him and his son from popping up in an ISIS execution video in Syria 8 years later. The source of the above info isn’t some blog or webzine but the Figaro, the right-wing French newspaper close to Sarkozy and even closer to French intelligence.

It gets better. 3 weeks before his shooting spree, Merah and the convicted terrorist Essid who obviously managed to beat the rap, went to Brussels to visit Abdelkader Farssaoui of the notorious jihadist network Sharia4Belgium.


Abdelkader Farssaoui, if that’s his real name, in front of ISIS-style posters of “heretical” Muslim statesmen who must be killed.

Farssaoui a.k.a. Abu Jaber is none other than the famous police informant “Cartagena” of the 2004 Madrid train bombings who told the cops everything but somehow the bombs went off anyway, just like the 1993 WTC bomb did despite all the snitches among the bombers. During a Syria jihad recruitment trial in Brussels in December, it emerged that Farssaoui was still officially a police snitch, though he was also the one sending 15-16-year-old kids to join ISIS, an aberration that even the judge found difficult to understand. However the prosecutor objected vehemently to bringing him to court so much as to testify, so someone else was framed and jailed in his place. It was this international snitch to whom Merah and his terrorist brother-in-law confided their plans to off the kuffar but the French flics were apparently none the wiser.

The Merah affair is a microcosm of French jihadism: All the jihadis and the cops know each other, the jihadis travel extensively to the GCC’s foreign jihads, and periodically kill people at home without any real attempt on the part of the police to stop them. Domestic terrorism is just as big business as foreign arms sales, so rest assured it isn’t going away anytime soon. It has the added advantage in these economically troubled and uncertain times when unemployment and poverty breed unrest and rebellion, to provide the excuse for governments everywhere to set up police states in order to nip dissent in the bud.

Part 5: The end of the American jihad-sort of
Part 4: The Long War
Part 3: Londonistan
Part 1: “From there will appear the horn of Satan”

The Jihad Industry: Where East and West DO Meet – 1

Part 1: “From there will appear the horn of Satan”

So you thought the global Jihad was run by whom exactly? Cave-dwelling mullahs in the Stans? Death-cult guys in Iraq and Syria dressed like ninjas? Saudi oil sheikhs who want all men to grow beards, wear tablecloths on their heads, and stone women? Pakistanis with a grudge against the whole world and nukes that make them feel invincible? The Turkish dictator who wants to wipe out the Kurds? Sure, all of the above, but that’s not even half the picture.

Most of those guys up there are what you might call field operators, except for the dumb shmuck butchering Mumbai commuters, who is just a footsoldier, and Baghdadi, who got promoted to middle management since his Baathist bosses stopped working for Saudi and took full ownership of ISIS.

So if the visible face of the global jihad is just the small and medium fry, who are the big cheeses? State sponsors? Evil corporations? Secret cabals?

Saudi Arabia

A sentence repeated to death in the US but that remains anathema in the corridors of actual power is “15 of the 19 hijackers were Saudis.” From the FBI investigations of the USS Cole bombing in Aden harbor to 9/11 and to the Sinjar documents detailing the vast flood of Saudi fighters and cash flowing to ISIS’s precursor, the Islamic State of Iraq, Saudi Arabia is both the perennial elephant in the room and the third rail, even more lethal than the Israel lobby.

A random example: Last September, the 13-year-old case of the families of 9/11 victims against Saudi Arabia was once again thrown out by a US judge, who preferred to give those known terrorist financiers the benefit of “sovereign immunity” that was denied to Afghanistan, which unlike Saudi had nothing to do with 9/11.

It was maybe for the best that the attorney who launched the litigation, the famous “tobacco lawyer” Ronald L. Motley, drank himself to a slightly early grave before he could see the wreck into which Saudis, with the help of US and British courts, turned his lawsuit. His chief investigator Jean-Charles Brisard, Europe’s top authority on Saudi terrorist financing, was the author of the report on Al Qaeda financing presented by French president Jacques Chirac to George Bush when he visited New York and Washington one week after 9/11. Two years later, Brisard used the report that painted a very ugly picture of Bush’s Saudi friends as the basis for 50 pages of Bin Laden: The Forbidden Truth that he co-authored with Journalist Guillaume Dasquié.


80% of the suppressed book was about Saudi terrorism but the US pretended it was about the Taliban and oil.

In Brisard’s book there is also a voice from beyond the grave, like Caesar’s ghost: That of former FBI counter-terrorism chief John O’Neill who pursued the Saudi-Al Qaeda nexus relentlessly but vainly until he was forced out of the FBI and suckered into what he thought would be an easy gig: head of security of the WTC. He died there on his second day on the job. Years of frustration from Saudi stonewalling and the US government tying his hands led him to tell Brisard this: “All the answers, everything needed to dismantle Osama bin Laden’s organization can be found in Saudi Arabia.”

What happened next to Brisard and his book is what happens to anyone who steps on the toes of powerful criminals these days: a British libel court. The UK’s intentionally archaic libel laws protect everyone from islamofascist mass murderers to gangsters from public scrutiny. They also ended up protecting Al Qaeda’s Saudi financiers, when Saudi billionaire Khalid bin Mahfouz, whose dad founded the notorious money-laundering and terror-financing BCCI bank in which he had a 20% share, took Brisard and co-author Dasquié to court.

The neat thing about corrupt totalitarian cesspits like Saudi Arabia is that the powerful can make inconvenient evidence and people disappear without a trace, since there are no independent institutions to keep reliable records. Mahfouz did just that, disappearing among other things his sister’s marriage to Osama bin Laden, his homie from Yemen. So Brisard and Dasquié were made into liars and were forced to publicly retract the entire chapter on Mahfouz entitled “A Fortune in the Service of Terrorism,” which of course killed the book and almost killed their careers as well. With Brisard’s credibility shot and the chief attorney dead, the 9/11 families’ lawsuit was doomed.

Saudis are so good at this impunity game that they have been able to bomb Yemen to rubble and kill tens of thousands of civilians there using all sorts of strictly banned weaponry for over a year without any reputable media organ or institution daring to utter a peep. In fact the unimaginable horror of what they are doing in Yemen makes all their previous capers, whether it’s blowing up the WTC or drowning Syria in blood, look like child’s play.


Saudi military bases in their Nazran and Jizan provinces are falling one after the other to the Houthis

The prophet of Islam once famously said that the horn of Satan would appear in the Najd, from where the Saud tribe did indeed emerge 1100 years later leaving a bloody trail of massacres behind it until it finally captured the holy cities. So is Saudi the ultimate evil, the source of all Islamist terrorism? The answer is unequivocally no. Saudis are too lazy, backward, ignorant, barbaric, and incompetent to have become such a huge menace on their own, for one thing. The people whom we see today abandoning their tanks and fortresses to flee from half-starved barefoot Houthis are barely capable of fighting their way out of a paper bag, much less mount a global jihad. They certainly are evil enough to do what they do but simply lack the mental and physical capacity to carry through with their evil intent.

So who helps them and why? That’s when we see how East meets West.

Part 5: The end of the American jihad-sort of
Part 4: The Long War
Part 3: Londonistan
Part 2: Allons enfants du djihad