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Dow drops 400 points after Powell triggers a jump in yields, Nasdaq goes red on the year

CNBC: U.S. stocks fell sharply on Thursday after Federal Reserve Chair Jerome Powell failed to reassure investors that the central bank would keep surging bond yields and inflation expectations in check.

The S&P 500 last traded down 1.6% after dropping 2.5% at its session low. The Dow Jones Industrial Average slid 440 points. At one point, the blue-chip benchmark tumbled more than 700 points. The Nasdaq Composite fell 2.3% as growth stocks came under pressure amid rising rates. Apple slipped 1.6%, while Tesla dropped 5.4%. The heavy losses pushed the Nasdaq into the red for the year.

The tech-heavy benchmark also fell into correction territory, down more than 10% from its recent high on an intraday basis. Read More

Freedom Watch: China Behind Global Decline in Freedom

Breitbart: Freedom House on Wednesday released the 2021 edition of its annual Freedom in the World report, charting an alarming “deterioration of democracy” around the world in 2020.

So they worshiped the dragon who gave authority to the beast; and they worshiped the beast, saying, “Who is like the beast? Who is able to make war with him?” Revelation 13:4

The report cited the “malign influence of the regime in China” as one of the most “profound” factors in the rising tide of authoritarianism.

Of course, the pandemic that swept out of China to destabilize the world was a major factor as well, and it was a powerful force multiplier for the identified malevolence of the Chinese Communist Party (CCP). As the Freedom House report, subtitled Democracy Under Siege, put it:

In Restive Chinese Area, Cameras Keep Watch - The New York Times

The spread of the Wuhan coronavirus was accompanied by a matching spread of “excessive surveillance, discriminatory restrictions on freedoms like movement and assembly, and arbitrary or violent enforcement of such restrictions by police and nonstate actors,” which is tantamount to saying the CCP’s worldview and ideology spread along with its virus. A growing number of ruling regimes took advantage of the coronavirus to “quash opposition and fortify their power,” and China is the world leader in exports for opposition-quashing tactics and technologies. Read More

Mediterranean oil spill is ‘eco-terrorism’ by Iran, Israel says

JPost: Iran intentionally polluted the Mediterranean Sea and Israel’s shores in an act of ecological terrorism, causing the greatest environmental disaster in Israel’s history, Environmental Protection Minister Gila Gamliel said on Wednesday.

A turtle covered in tar is seen on an Israeli beach on February 19. (photo credit: AVSHALOM SASSONI/MAARIV)

“This pollution has people who are responsible for it and have to pay the price. Our nature is damaged, our animals are harmed, thanks to merciless environmental criminals,” Gamliel

said.

Gamliel explained that, following a two-week investigation, the Environmental Protection Ministry found that the ship that leaked the crude oil, called the Emerald, was owned by a Libyan company and sailed from Iran to Syria. It departed Iran, turning off its automatic identification system (AIS) – which transmits its location to other ships in the area. It turned the AIS on as it went through the Suez Canal, and then off again as it approached Israel’s shores.

The ship remained within tens of kilometers of Israel’s shores, within Israel’s economic waters, for nearly a full day, spilling large amounts of oil on February 1-2, with its AIS off.

Then it continued on to Syria, where it turned on its transmitter, and it returned to Iran, turning off its AIS as it passed Israel. It is currently in Iran. Read More

Will Powell Spook Stocks (& Bonds) In Today’s Speech?

Zero Hedge: Powell was not concerned by higher yields early last week but he may change his tune on 4 March

  • Brainard has already admitted that more recent price action has caught her attention
  • We expect Powell to flag scope for a policy response if rising long-term yields threaten recovery

The key event for the market this week would usually be the US non-farm payroll report but focus is instead centred on Fed Chair Powell’s speech on 4 March. We doubt that he will signal near-term Fed policy action in response to the recent UST yield volatility. Given current yield levels and financial conditions, it is difficult to justify such a move without appearing to be driven solely by market developments. Read More

 

Democrat-Led House Passes H.R.1, Aimed to Federalize U.S. Elections – Cheat by Mail

Breitbart: The U.S. House of Representatives on Wednesday passed H.R. 1, otherwise known as the “For the People Act,” which Republicans warn will compromise election integrity and ultimately lead to the federalization of U.S. elections.

The Democrat-led House passed the legislation on party lines, 220 to 210. A summary of the bill notes that it “expands voter registration (e.g., automatic and same-day registration) and voting access (e.g., vote-by-mail and early voting)” and imposes limits on removing voters from voter rolls.

Republicans have warned that the Democrat legislation would vastly reduce the power of the states to control and operate elections at the local level.

“If this bill passes, it puts in all these terrible provisions,” Hans von Spakovsky, manager of the Heritage Foundation’s Election Law Reform Initiative and a senior legal fellow of the Meese Center for Legal and Judicial Studies, said during a January appearance on Breitbart News Daily.

Vote By Mail :: California Secretary of State

“It’s a federal micromanagement of the election process, and everything that folks on the left want to reduce the integrity [and] the security of the election process is in there,” he continued.

“If you’re a state like Alabama or Texas that has a voter ID law, you might as well forget it, Read More

Will Powell Unveil Operation Twist 3.0 ?

Zero Hedge: There has been spreading chatter that during Jerome Powell’s upcoming appearance at a Wall Street Journal virtual event on Thursday at noon, the Fed Chair may unveil changes to Fed bond buying and potentially unveil Operation Twist 3.0. As DataTrek‘s Nicholas Colas asks, “will he preview a change in the central bank’s quantitative easing program, one that shifts purchases to the long end to bring down 10-year Treasury yields?”

In response, Colas says that the question sent him to the academic literature and historical record concerning the prior 2 times the Fed delved into implicit yield curve control:

  • The San Francisco Fed published an analysis in 2011 about the 1961 “Operation Twist”. It found that the net effect was to push long term yields down by 0.15 percentage points. The paper says this was “highly statistically significant, but moderate”. (Link to the full article.)
  • This is what happened to 10-year yields during the September 2011 – December 2012 “Operation Twist 2” period (chart from January 2010 to December 2013):

Colas’ takeaway is that “it is this more recent history – one that shows the Fed can absolutely suppress long term interest rates by 100 bp or more – that will be on investors’ minds as they tune in to hear Chair Powell on Thursday.” Read More

Xi Jinping Calls Out US As “Biggest Threat” To China’s Development & Security

Zero Hedge: China is currently signaling the world that it has mapped out its post-COVID ascent, but crucially it is now openly naming the United States as its biggest global obstacle.

Then the sixth angel poured out his bowl on the great river Euphrates, and its water was dried up, so that the way of the kings from the east might be prepared. Revelation 16:12

Though Beijing and Washington now seem to have accepted their ongoing economic and financial rivarly as essentially commonplace across various industries, particularly tech and communications, as well as defense, a recent speech by President Xi Jinping upped the ante further, having as its central theme “the East is rising and the West is declining.” 

The biggest source of chaos in the present-day world is the United States,” Mr. Xi stated ultra-confidently in a speech that was published last week and recently translated. And according to an official cited in The New York Times as having been present at the speech, Xi said, “The United States is the biggest threat to our country’s development and security.” Read More

ICC opens war-crimes probe; Netanyahu blasts it as ‘anti-Semitic’ and ‘hypocritical’

JNS: “The decision has no basis in law or precedent; rather, the ICC has become just another anti-Israel international organization,” Professor Eugene Kontorovich, director of International Law at the Jerusalem-based Kohelet Policy Forum, told JNS.

“My help comes from the LORD, the Maker of heaven and earth. indeed, he who watches over Israel will neither slumber nor sleep. the sun will not harm you by day, nor the moon by night. the LORD will watch over your coming and going both now and forevermore. Psalm 121.1

The chief prosecutor of the International Criminal Court in the Hague announced on Wednesday her intention to open an investigation into war crimes allegedly committed by Israelis and Palestinians since 2014.

The announcement was strongly denounced by Israel, but welcomed by the Palestinian Authority, which had requested the probe. It comes less than a month after the ICC ruled that it had jurisdiction to open an investigation.

17 Captivating Photos from Operation Protective Edge

“The investigation will cover crimes within the jurisdiction of the court that are alleged to have been committed in the situation since 13 June 2014, the date to which reference is made in the referral of the situation to my office,” said Chief Prosecutor Fatou Bensouda in a statement. “Any investigation undertaken by the office will be conducted independently, impartially and objectively, without fear or favor.”

By choosing June 13, 2014, as the start date for the investigation, it will not look into the murder of three Israeli Jewish teenagers—Eyal Yifrach, Gilad Shaar and Naftali Frenkel—that happened the day before. Read More

Iraqi Airbase Housing U.S. Troops Attacked by Rockets, Iran Militia Believed Involved

US News: A SPRAWLING AIRBASE IN Iraq that serves as one of the most consequential hubs for the U.S.-led military presence there came under attack Wednesday morning by 10 rockets, local officials said.

The perpetrator was not immediately clear and Iraqi authorities were still conducting an investigation as of Wednesday morning. However, Iraqi officials issued carefully crafted statements shortly afterward that indicate they believe Iran was behind the attack.

Pentagon spokesman John Kirby in a statement said one U.S. civilian contractor had a heart attack while sheltering during the strike and later died. No uniformed U.S. troops were injured, Kirby said. The U.S. cannot attribute responsibility for the attack, he said, deferring to the Iraqi investigation. Read More