Posts Tagged ‘funding’

If Brazil’s So Strong, Why Is It Using An Accounting Trick To Hit Its Budget Goals?

If Brazil’s So Strong, Why Is It Using An Accounting Trick To Hit Its Budget Goals?

Courtesy of Joe Weisenthal at Clusterstock Lula

Brazil is hot (especially it’s currency), but unlike with China you almost never hear any chatter about it being on an unsustainable path.

That alone is probably reason to pay close attention. As Nassim Taleb would tell you, crises don’t come from places where everyone and their mother is anticipating a crisis.

Not that Brazil is in any imminent trouble, but it’s interesting that the government seems to be engaging in accounting tricks to hit its budget goals.

Market News International (via Kid Dynamite) explains how the government is hitting its target of a surplus of 3.3% of GDP:

President Lula has called the Petrobras capitalization plan, worth $69 billion, "the biggest equity offer in the history of capitalism."

But of that $69 billion, $43.5 billion came from Petrobras itself, to pay the government for 5 billion barrels of undeveloped ultradeepwater petroleum reserves, and that in turn was paid for using a government loan.

Felipe Salto, a specialist in public accounts at the Sao Paulo consultancy Tendencias, told MNI the government loan to Petrobras was "an ingenious piece of financial engineering."

In sum, for $43.5 billion of the $69 billion capitalization, no money changed hands, as the company essentially gave the government shares in return for the petroleum reserves.

However, R$24.7 billion ($14.4 billion) of the government’s loan to Petrobras came via the state BNDES development bank. The government is lending $14.4 billion to the BNDES, which it is lending it to Petrobras, to pay the government. But government accountants are booking this $14.4 billion as revenue.

Look, Brazil is still running a surplus, so its government probably won’t have a funding crisis. But the fact that the goal was only hit via a one-off accounting move is an early warning.


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“National Security:” A Global Police State-Within-a-State

"National Security:" A Global Police State-Within-a-State 

Courtesy of Charles Hugh Smith, Of Two Minds 

The Global War on Terrorism (GWOT) has spawned a national security "state-within-a-state" with essentially unlimited funding and support of America’s political machine. This National Security State has infected domestic policing and courts; it is both ubiquitous and completely unaccountable.

The Democrats and Republicans have enthusiastically joined hands to create a global police/national security state-within-a-state of unimaginable reach and power.  Frequent contributor Michael Goodfellow sent me this investigative report, which I consider one of the most important of the decade: Top Secret America: A hidden world, growing beyond control (Washington Post).

Let’s go back briefly to September 1, 2001, before the 9/11 attack. The national security "assets" of the nation had all the information needed to stop the attack. The various agencies did not stop the attack because there was essentially zero coordination and data-sharing between the CIA, NSA and FBI.

This was laid out in the PBS program The Spy Factory.

Now the national security "assets" have metastasized into a gargantuan national security state-within-a-state--and the exact same problem not only exists, it has become even more intracable.

Now that the national security state (NSS) has become much larger and even more unwieldy, coordination, collaboration and data-sharing have been rendered essentially impossible. This report makes that absolutely clear.

Rather than fix the problem of coordinating our national security assets, the Federal government and its leaders have amplified the problem. At the same time, they have created a monster which is beyond the control of elected officials or the citizenry, a secretive state-within-a-state which protects itself behind the inpenetrable shield of "national security" and "need to know."

The national security state is the ultimate protected fiefdom. Cutting one dollar of funding would be instantly characterized as "weakening our fight against global terrorism," as would any limits on the NSS’s powers.

This is in effect a new arm of the "military-industrial complex" which dwarfs the power of the traditional military-industrial complex: "defense" contractors and the revolving door between the DoD (Department of Defense) and these Pentagon-dependent industrial corporations.

GWOT is the perfect defense for a state-within-a-state that is insatiable and beyond accountability. Even simple inquiries are quickly dismissed as "dangerous"--as if global terrorists would glean some useful information from knowing just how many hundreds of billions of dollars are being spent tracking them.

What’s essential to our…
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California Students and School Districts Finally Sue the State

California Students and School Districts Finally Sue the State

Courtesy of Jr. Deputy Accountant 

About damn time. Now I’m not sure what good this will do but, uh, it’s nice to see California at least attempting to do something about the sad situation in this state.

SJ Mercury News:

A coalition of students, school districts and education groups sued the state of California on Thursday, seeking to force the governor and Legislature to develop a new system to fund public schools.

The lawsuit asks the court to declare the current school finance system unconstitutional because the state doesn’t provide enough money to cover its own educational mandates and programs.

The complaint was filed in Alameda County Superior Court by more than 60 students, nine school districts and groups representing school boards, administrators and parent-teacher associations.

"The real problem is the state is not providing the support my school needs to teach me everything I need," said Maya Robles-Wong, an 11th grade student in Alameda who is one of the plaintiffs.

The California attorney general’s office, which represents the state in such lawsuits, did not immediately respond to a request for comment.

Yeah, good luck with that. 

 


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Phil's Favorites

5 COVID-19 myths politicians have repeated that just aren't true

 

5 COVID-19 myths politicians have repeated that just aren't true

The purveyors of these myths aren’t doing the country any favors. Brendan Smialowski/AFP/Getty Images

Courtesy of Geoffrey Joyce, University of Southern California

The number of new COVID-19 cases in the U.S. has jumped to around 50,000 a day, and the virus has killed more than 130,000 Americans. Yet, I still hear myths about the infection that has created the worst public health crisis in A...



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Biotech/COVID-19

5 COVID-19 myths politicians have repeated that just aren't true

 

5 COVID-19 myths politicians have repeated that just aren't true

The purveyors of these myths aren’t doing the country any favors. Brendan Smialowski/AFP/Getty Images

Courtesy of Geoffrey Joyce, University of Southern California

The number of new COVID-19 cases in the U.S. has jumped to around 50,000 a day, and the virus has killed more than 130,000 Americans. Yet, I still hear myths about the infection that has created the worst public health crisis in A...



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ValueWalk

Hedge Funds And The Spirit Of The PPP Program

By Jacob Wolinsky. Originally published at ValueWalk.

Letter to the editor: I had noted a few months ago that many of these firms getting the PPP loans were not ‘in the spirit’ of the program.

Q2 2020 hedge fund letters, conferences and more

The Spirit Of The PPP Program

Without any real 'oversight' the compliance part of these loans seems - - - questionable --- on some.  I am not sure how it all really works, but the American public likely believes these funds should have gone to the 'small business', with waiters, waitresses, or bartenders who obviously couldn't work.  This was th...



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Zero Hedge

DoJ, FTC Investigating TikTok Over Child Privacy Violations

Courtesy of ZeroHedge View original post here.

Update (1840ET): Not long after President Trump confirmed that the administration is "looking into" banning TikTok, Reuters has reported that the DoJ and FTC are, in fact, looking into probing TikTok over allegations the company violated a 2019 agreement where it promised to protect children's privacy.

And instead of citing the usual anonymous sources, the report cited officials from various nonprofit groups who claimed that officials from the DoJ and FTC had met with them over compla...



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The Technical Traders

Credit/Investments Turned Into End-User Risk Again

Courtesy of Technical Traders

Continuing our research from Part I, into what to expect in Q2 and Q3 of 2020, we’ll start by discussing our Adaptive Dynamic Learning predictive modeling system and our belief that the US stock market is rallied beyond proper expectation levels.  The Adaptive Dynamic Learning (ADL) modeling systems attempts to identify price and technical indicator DNA markers and attempts to map our these...



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Kimble Charting Solutions

Here's Why QQQ and Large Cap Tech Stocks May Rally Another 10%!

Courtesy of Chris Kimble

The long-term trend for large-cap tech stocks remains strongly in place.

And despite the steep rally out of the March lows, the index may be headed 10 percent higher.

Today’s chart highlights the $QQQ Nasdaq 100 ETF on a “monthly” basis. As you can see, the large-cap tech index touched its lower up-trend channel support in March at (1) before reversing higher.

It may now be targeting the top of the trend channel at (2), which also marks the 261.8 Fibonacci extension (based on 2000 highs and 2002 lows). That Fib level is $290 on $QQQ.

If so, this upside target for $QQQ is still 10% above current prices. Stay tuned!

This article was first written ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 14 March 2020, 05:51:16 PM

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Comment: Crash in perspective - its Bad, and not over!



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Comment: The Blood Bath Has Begun youtu.be/bmC8k1qmM0s



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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

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Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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