How bad does housing suck if you’re poor and live in Shanghai, China? This much:
“Shanghai’s landlords are quite ingenious, managing to convert even the smallest spaces into rentable rooms at high prices.”
Bathroom with a ladder to a crude loft above it? 600 yuan. (Exchange rate is currently running just above 7 yuan to the dollar.)
At least that had air-conditioning. For 300 yuan, you can get a room barely big enough for a small bed with two holes punched in the wall for ventilation.
For the same price, you can get a bathroom with a bed in the crawlspace right behind the toilet. “After using the toilet, the smell lingers in the room. Also don’t turn the shower head [over the tiny sink] on too high or it’ll soak the bed.”
One room is a twice-coffin size crawlspace off a balcony for 1,500 yuan.
But wait! For a mere 50 yuan, a guy rented a 0.3 square meter crawlspace he can’t fully lie down in. “Some local netizens from Shanghai commented that a closet could not be rented for 50 yuan, the price being at least 120 yuan.”
“This design is really thoughtful! Knowing you’d have to squat to cook noodles, they smartly place a toilet right here, complete with a door!”
“Here’s another place for 500 yuan rent combining living room, bedroom, kitchen and bathroom all in one!” Complete with cardboard box bed in the entry. “There’s a simple induction cooker for cooking, but it’s a tight squeeze for anyone a bit larger, though there is an exhaust fan. This stove is too far from the toilet. It’s inconvenient to cook while you are using a toilet, but when you shower you can easily stir fry at the same time.” No AC, but the landlord said they could add it for 200 extra yuan rent…
Of course, those exciting bed-in-toilet apartments are only available to people who can afford to pay any money for rent. Many can’t. “There are also groups known as Knights of the Bridge Underpass. In big cities, you can deliver food without renting a place. We found a bridge where several delivery guys and girls live.”
We’ve covered problems with youth despair in China before, including both the “lie flat” and “let it rot” movements.
“How do you deal with water and electricity?…First you can use water from public toilets, but this water is only for washing and laundry, not drinking.” To be fair, they show sinks in public toilets, so I imagine that’s where they’re getting their water, but it’s China, so who knows?
“Drinking water is bought from villagers nearby.”
“Electricity can be sourced from the batteries of delivery ebikes, which are rented for 300 to 400 a month. You can swap many each day, then connect an inverter to the battery you get 220 volt household electricity, and that solves that problem.” (220 volts was evidently standardized by the nationalist government in 1930.)
There’s a video blogger who lives in his solar equipped van, and he seems much better off than any other housing option covered in this video.
“It’s not just Shanghai. Nearly all major Chinese cities host these workers, often labeled as a low-end population. These include delivery workers, ride share drivers, factory or construction site laborers, or college students from out of town.” During America’s industrial boom, working in a factory allowed you to buy a house. Thanks to China’s factory boom, factory workers can enjoy living under a bridge.
“Working odd jobs, they hustle in every corner of the city, typically working over 10 hours a day without a single day off. The city’s prosperity doesn’t touch them. Their daily focus is simply on earning more money.”
The situation is slightly better in Beijing, which has 3 square meter apartments for 2000 yuan, and Shenzhen offers “urban villages” (I think we’d call them apartment complexes) with 1 bedroom apartments for 700 yuan a month.
In Guangdong, the so-called “Shango Gods” have completely given up on life and just live under bridges.
“The unemployed crowd together both men and women in an area filled with unbearable odors.”
“They work one day and rest for a week. A day’s pay can be 200 yuan, enough to sit in an Internet cafe for a week. They eat steamed buns, buy three or four to last the day.”
“In many cities, there are many of these so-called Shango Gods who have completely given up on life. ‘Already seeing no hope. This kind of life is actually pretty good. Wherever you go, just find a place to lie down and don’t think about anything, because no matter how hard you try, without connections it won’t work.'”
America is hardly free of homelessness or tiny apartments. But America’s homeless population is overwhelmingly mentally ill alcoholics and drug addicts living off handouts whose plight is catered to by a Homeless Industrial Complex that rakes off graft pretending to help them, not able-bodied young people willing to work but unable to afford even the meanest accommodations. And the smallest New York City apartments you can find on YouTube all look lightyears better than the horrors seen in Shanghai.
Communists have long bragged about working for the proletariat, but in Communist China, the actual proletarians have been reduced to living under bridges.
I didn’t intend to do an all “China is Screwed” video roundup weekend, but the videos keep stacking up and I need to post some rather than producing a giant unwieldy post with hours of footage.
First up: Young people’s whose job prospects and futures are so dim that they’re actually living in concrete pipes.
Takeaways:
Certainly America has no shortage of transients living rough, but in contrast to ragged drug addicts, alcoholics and dangerous lunatics, the people living in these pipes look to be normal, healthy 20-something Chinese.
Just because you’re living in a concrete pipe doesn’t mean you can’t be a live-streamer. Like the under-the-bridge streamers seen in previous videos, you wonder how widespread this behavior is, or whether we’re just seeing the edge of the freak show.
“Despite the female hosts not being beautiful and the male hosts not handsome, it doesn’t affect viewership.” I do rather want to check their numbers, here.
“This is because it’s happening in the industrial city known as the world’s factory – Dongguan in Guangzhou.” It’s on the Pearl River Delta near Guangzhou and Hong Kong. “After more than thirty years of China’s reform and opening up, Dongguan, which has always been at the forefront of economic development, has recently seen a wave of business closures and foreign capital relocation.” See also: all those previousChina is screwed videos.
“When foreign capital withdraws, thousands of Chinese workers lose their jobs. Among these people, some have worked in factories for decades and are now middle-aged. It’s overwhelming to be suddenly faced with unemployment and consequential cost-of-living pressures, coupled with labor competition against millions of university graduates.” I’m sure that sucks, just like getting laid off here sucks. But in a capitalist economy, even a flawed one like we have, is always going to be more flexible about creating jobs that one ruled by a communist party’s aristocracy of pull.
“Those who are single simply adapt to homelessness, creating their own personal space amongst the concrete pipes.” Or, you could have, you know, lived modestly, saved money, and shared housing with other people. The fact they haven’t gone this route and are instead living in pipes suggests something in the Chinese economy is even more broken than we think.
Foreign companies like Microsoft and Nokia are now moving to Vietnam and India. “Japanese companies like Panasonic, Daikin, Sharp, and TDK are planning to move their manufacturing bases back to Japan. Well-known companies like Uniqlo, Nike, Funai Electric, Samsung, and others are also accelerating their withdrawal from China.”
Like industry is also fleeing from elsewhere in China.
“The once bustling Bund in Shanghai is now overgrown with weeds due to lack of maintenance and tourism, presenting a scene of desolation. Everywhere in Shanghai’s luxury residential communities, there are messages about subleasing and selling at a loss. The elites, celebrities, and tycoons left Shanghai at the first chance they got after the lifting of the lockdown. The political uncertainty in China and the frequent changes in regulatory clauses by the authorities have made entrepreneurs miserable.” Communists making entrepreneurs miserable? This is my shocked face.
“Domestic entrepreneurs are reluctant to invest further, and foreign investors are hastening their departure.”
Various Chinese company specific layoffs and financial difficulties snipped.
“Wall Street leading figures, after enjoying three years of benefits from the broad opening of China’s financial market, are planning large-scale cuts to projects and staff in China…Goldman Sachs has lowered its five-year plan expectations, and Morgan Stanley has decided not to set up a securities dealer in China, reducing its derivative and futures business investment to $150 million. JPMorgan Chase & Co. began cutting its dedicated staff in China earlier this year.” There’s not a violin small enough.
In a capitalist economy, there would be some sort of middle ground between the empty ghost cities and people living in pipes near megalopolises. If you don’t regulate the economy so heavily as to make building housing impossible (I’m looking at you, California and NYC), then profit will drive developers to create housing to fill a market need. With China’s crazy misallocation of loans to unprofitable housing to satisfy regional government growth targets, supply has been so severed from demand that such market-making is impossible.
China is going to come out of it’s decades-long growth spurt with crumbling cities and people that mostly are still poor.
Remember how a bunch of young Chinese just decided to give up and let it rot? Recently, a whole bunch of them have decided to make Dali in Yunnan Province their own slacker city.
Takeaways:
“Recently a city has become popular because it has been occupied by young people who want to lie flat. It’s Dali, a historical and cultural city in Yunnan province, southwest China, with a population of about 650,000. It has few factories in the area, and tourism accounts for a large share of the municipality’s revenue.”
It’s built around a large lake.
“A few video bloggers who are secondary landlords in Dali city claim that an army of 100,000 people lying flat have gathered and have occupied the city.”
“Here 350 yuan a room per month.” That’s a bit over $50.
“The cost of living in Dali is 8,000 Yuan a year. That is $1,162.”
“Young people [in China] see no hope for their future and choose to lie down. Their motto is no buying a home, no car, no marriage, no baby, no consumption.”
Chinese woman: “It isn’t that I don’t want to have children. I can’t afford it. Housing is so stressful! Without a home, I’m afraid to get married. The cost of having a baby is high. There’s no money or time to raise them, and women’s work is easily affected by childbirth.” All things that help contribute to China’s disasterous demographics.
“I’m a leek. I resigned myself to my fate, but I won’t drag a child down to this mess.” “Leek” was a buzzword five or six years ago for someone the Chinese government regarded as a disposable worker/consumer. Sort of like “cog in the machine.”
“Before the lying flat people converged on the city of Dali, it had already become a gathering place for digital nomads,” i.e. people who can work remote jobs from anywhere with a decent Internet connection.
For the past 20 years, the professional software engineer has been synonymous with young and rich in China. They’re the 996th Generation, who work from 9 AM to 9 PM, 6 days a week, sacrificing their health, but also enjoying the dividends of China’s dotcom boom over the last 20 years. But now China’s Internet industry has entered an era with State-Owned Enterprises (SOEs) in, private companies out, where even big tech companies are being nationalized. The overall economy is slowing down, regulatory bans are proliferating, and the epidemic is exacerbating this trend. Engineers are at increased risk of losing their jobs, and their income and benefits are reduced from time to time. Engineers who have lost their jobs will join the ranks of those who are lying flat. They usually have nothing to do, spending most of their time on the internet playing games and chatting, consuming two packs of instant noodles a day.
“The employment market in Shanghai is very bad right now…what is scary is that there are no jobs for you to work again. Private companies are closing their doors, going bankrupt.”
As always, it’s hard to determine just how widespread “lying flat” is among young Chinese. If the videos are anything to go by (a big “if”), they all seem considerably cleaner and better behaved that America’s ranks of tent-dwelling, drug-addicted transients. And many seem to be actually renting space for their tents.
At 9:50 in, you see that cyberpunk dystopian scene of hundred of young video blogger “hosts” broadcasting from their own tiny spaces under a bridge. “Why are there so many young people in China working as online hosts? It’s not that it’s glamorous, it’s more of a helpless attempt under the current job hunting predicament.” Supposedly this happens in multiple Chinese cities, though evidently streaming locally in rich areas like Shanghai brings higher “tips.”
Reader Kirk suggested Chinese bank runs might be the next story to cover. I think I covered bank runs at smaller rural Chinese banks in a previous “China is screwed” post. Is a wider run in progress? Maybe.
Multiple sources contacted by Asia Markets, have confirmed deposits at the following six banks have been frozen since mid-April.
Yuzhou Xinminsheng Village Bank (located in Xuchang City, Henan Province)
Zhecheng Huanghuai Bank (City of Shangqui, Henan Province)
Shangcai Huimin Rural Bank (Zhumadian City, Henan Province)
New Oriental Village Bank (City of Kaifeng, Henan Province)
Huaihe River Village Bank (Bengbu City, Anhui Province)
Yixian County Village Bank (Huangshan City, Anhui Province)
It’s understood the banks with branches across the Henan and Anhui Provinces successively issued announcements in April, stating they would suspend online banking and mobile banking services due to a system upgrade.
At the same time, clients reported their electronic deposits in online accounts, mobile apps and third-party platforms could not be withdrawn.
This led to depositors rushing to local bank branches, only to be told they were unable to withdraw funds.
By late May, images emerged on Chinese social media of demonstrations at the front of numerous bank branches. Asia Markets has verified these images with local contacts.
Snip.
Regardless of the cause, the developments raise serious questions about the health of China’s and its regulatory oversight. The more immediate concern, however, is the prospect of contagion, which could see the (so-far) rural-only bank run spread to bigger cities.
There’s evidence this is already happening.
In one of the only mainstream international media articles to report on the unfolding situation, local residents highlighted the seriousness of the situation and the likelihood of contagion.
From the Financial Times on June 9:
“Some depositors such as Xu have already lost trust in the system. The 39-year-old said he had withdrawn all of his deposits from 10 other small banks that had promised him an annualised yield of more than 4 per cent.
“Another depositor, a 30-year-old father, said he had placed more than Rmb900,000 in his village’s banks since 2020 at a return of 4.1 per cent. “I felt like being slaughtered,” he said, declining to give his name. He drove overnight to negotiate with the banking regulator in Zhengzhou, capital of Henan, in mid-May. “This is the money my wife and I have saved together since we got married. I had to lie to her that I was away for work.”
On Twitter, a video of a large line at an ICBC Bank in China (one of China’s largest state-owned banks) posted on Tuesday, June 9, suggest contagion is in progress.
Translated to English, the tweet reads “The bank card system is locked, and these people are here to unlock it. Massive runs are coming.”
Blogger, Jennifer Zeng, has reported major issues with withdrawing cash from banks in Shanghai in recent days. The uncertainty no doubt exacerbated by the prospect of more lockdowns as COVID cases again spike.
“All banks in Shanghai have restricted depositors from withdrawing money… A bank run is about to sweep China,” she said.
Maybe. This, from five days ago, suggests Shanghai banks are limiting total transactions to 300 a day.
While I’m always willing to believe the worst about China’s smoke-and-mirrors economy, it’s possible that Shanghai’s problems are just temporary post-lockdown issues that will subside, assuming China doesn’t lock that city down again. (Don’t count on it.)
All the reports of bank runs I’m seeing either link to that Asia Markets piece, or the Hal Turner radio show piece that largely reprints it.
Right now I’m going to go with “Not Yet Proven” for current bank runs in China.
Though Lord knows if I were stuck in China (and had somehow managed not to get imprisoned or executed), I’d be pretty intent on getting my money out of Yuan entirely and into something more stable like gold, silver, or even U.S. dollars…
Lefty sorts are always whining that other countries have high speed rail networks and we don’t. Many point to China’s extensive network of high speed rail as what we should be doing.
Tiny problem: China’s high speed rail network is a giant, unprofitable sinkhole of $1.8 TRILLION worth of debt.
Some take-aways:
The average operating loss for the system is $24 million per day.
The official amount for China National Railway debt for high speed rail is $900 billion, but since roughly half of the debt comes from local governments, the total is probably closer to $1.8 trillion.
For comparison sake, $1.8 trillion is about South Korea’s entire yearly GDP.
“Shanghai, the richest city in China, has a total GDP of $600 billion in 2020, which means that even the whole year of Shanghai’s GDP won’t be able to cover the debt of China National Railway.”
It’s extensive: 37,900km, nearly double the length from 2015.
Return on high speed rail investment is only about 2%, and the bulk of bond payments for loans are coming due over the next few years. “Cash flow from railway transportation revenue isn’t enough to cover the operating costs, let alone the ability to pay the debt and interest.”
Local government debt levels are around 100%.
“More than 85% of the funds raised through urban investment bonds are earmarked for repaying old debts with new ones.”
Even the most profitable high speed rail stretch, Beijing to Shanghai, only earns a return on investment of 5%.
Japan’s successful high speed rail network serves three metropolitan areas (Tokyo, Nagoya and Osaka) that have 55% of that nation’s population.
“A professor at the School of Economics and Management of Beijing Jiaotong University concluded that the operating costs are only just covered when the transport density of a high-speed rail line reaches 36 million passenger kilometers per kilometer. In China the average transport density is only about 17 million passenger kilometers per kilometer.”
High speed rail can’t transport heavy freight.
“The Lanzhou Uramuchi HSR in western China can run more than 160 trains per day. In reality, this route only runs four trains per day.”
High speed rail occupancy rate is only 30%, and is still too expensive for most Chinese to use.
High speed rail construction has squeezed out much-needed construction of regular rail. “China’s rail freight capacity can’t meet market demand. China’s market share of road freight turnover has risen rapidly to 49% market share in 2016.” China rail has jacked up freight costs to make up for losses on high speed rail.
China’s freight trucks get overloaded all the time.
China’s containerized shipping accounts for 40% of global trade, but “the proportion of China’s sea rail intermodal transport volume in 2017 was only about 2.5 percent.” 84% of port containers go out by road.
So why all the money poured into high speed rail? Opportunities for corruption.
Officials see the high-speed rail project in which China is involved as a lucrative opportunity. China’s former minister of railways, known as the father of high-speed rail, was sentenced to death for corruption. Emerging industries such as high-speed rail, which offer both substantial commercial value and political achievements for local officials, have enormous room for corruption. In a systemically corrupt environment white elephant projects, that is a large project that falls significantly short of its goals, and the costs of upkeep outweigh its usefulness, are favored by many officials and businessmen looking to make a fortune. The vast majority of high-speed railways around the world can’t make ends meet on passenger revenues alone to cover their construction and operating costs. Most operate at a loss.
In light of all that, why do American leftists keep complaining about America’s lack of high speed rail? Simple: It’s the corruption, stupid. High speed rail construction offers boundless opportunities for graft and corruption, and refusing to build any keeps them from getting their snouts into another giant trough of taxpayer money…
(I didn’t expect this past week to become a string of “China’s economy is smoke and mirrors all the way down” posts, but I keep running into more examples.)
Just days after the Chinese Communist Party lifted Shanghai’s last Flu Manchu lockdown, they’re locking Shanghai down again.
China’s commercial hub of Shanghai will lock down millions of people for mass COVID-19 testing this weekend – just 10 days after lifting its gruelling two-month lockdown – unsettling residents and raising concerns about the business impact.
Racing to stop a wider outbreak after discovering a handful of community cases, including a cluster traced to a popular beauty salon, authorities have ordered PCR testing for all residents in 14 of Shanghai’s 16 districts over the weekend.
Five of the districts said residents would not be allowed to leave their homes while the testing was carried out. A notice issued by Changning district described the stay-home requirement as “closed management” of the community being sampled.
The latest scare triggered a rush to grocery stores and online platforms to stock up on food, as users of China’s Twitter-like Weibo expressed fear they could be locked down for longer, having only started going back to work after the last lockdown was lifted on June 1.
Some areas had remained sealed off or quickly returned to lockdown due to infections and their close contacts.
While the rest of the world has moved on from useless lockdown foolishness, China is still Stuck On Stupid, and their “Zero Covid” policy has as much chance to stop spread as tying a live chicken rump to buboes had at stopping bubonic plague.
You’ve got to hand it to Peter Zeihan, who said this was precisely the sort of stupidity China would keep pursuing when talking about Tianjin’s lockdown last month.
I’ve been telling my clients for quite some time that it was only a matter of issue as to how the American/Chinese relationship imploded. It could be Trump, could be Biden, could be energy, could be food, could be security, could be trade, could be ethics, could be genocide. It’s a long list, but it appears that Covid ultimately is the one that is winning out.
The Chinese vaccine does not work against Covid, and the Chinese have spent the last two years lambasting the world and lying in the propaganda that they are the only country that’s even remotely dealt well with Covid. And they’ve specifically parroted a lot of the crazy theories out there about the western vaccines, that they make you magnetic or they make you infertile or whatever else, so they can’t import the western vaccines at all they have to wait until they make their own MRNA formula, and there’s no way that’s going to happen in the next year or two, so lockdowns are the only public health policy they have and now the majority of the parts of china that matter are offline.
If you’re stuck in manufacturing in China this is the beginning of the end, if it’s not the end already, because as soon as you have an opening, Omicron comes back in and then you get a closing again because that is the only tool that the Chinese Communist Party has left.
There more you start poking around online, the more you turn up reasons why China is screwed.
The first installment in this series was popular. Well, there’s a lot more reasons why China is screwed.
It’s screwed all the way down.
First up: Demographics:
Takeaways:
Remember all that talk of an “Asian Century?” Yeah, not so much.
“China will soon run out of people.”
China’s population pyramid is about to shift from a huge bulge of people in their prime earning years to one where that bulge is disproportionately elderly.
“Everything that made China what it is today has relied on a large, young, and productive workforce. Now, that workforce is about to succumb to biology just as every other generation has in every other country, ever.” Their demographic dividend is running out.
“China’s working-age cohort grew from 58% of the country in 1978 to 74% in 2010. But in less than twenty years, the UN predicts that number will be roughly back where it was in ‘78. By then, China will have twice as many seniors as children under 15.”
“Per capita wealth remains low, on the level of Mexico, the Maldives, and Kazakhstan. That means this mass of retirees won’t just contribute less to the economy, but will also require immense financial support — the kind China’s fractured pension and healthcare system isn’t remotely prepared for.”
“Unfortunately for China, the One-Child Policy has set the cultural expectation firmly at one.”
Replacement fertility: 2.1 children per woman. China’s official fertility rate: 1.6. “Yi Fuxian, a scientist at the University of Wisconsin-Madison [estimates] the true number at 1.18.”
“China’s preference for male babies means that between 2020 and 2060, there will be roughly 3 single men for every 2 single women.”
“China’s 2020 Census, [tallied] 14.65 million births the previous year — the lowest level since 1961.”
Japan, which is also aging, provides a best case scenario. “With a median age of 48.6, Japan is the 2nd oldest place on earth. Today, its share of the world’s manufacturing exports has fallen from 12.5% to just 5.2. Japan did not fade into global irrelevance. It’s still a great power. But it never fulfilled what once seemed certain: its rise to rival the U.S. as a superpower. And it never will.”
That’s part 1. Part 2 focuses on China’s out of control property market:
It starts off talking about the ghost cities, especially Ordos.
“Ordos does have an interesting story to tell. Just, not the one you might expect. The missing context, at the time, was far stranger than what the unimaginative pessimists concocted: Nearly all of these half-finished homes have owners — the vast majority of which have no intention of ever moving in.”
“All over China are millions of empty, some unfinished, but almost universally sold homes — not just in far-flung corners but also in Beijing, Shanghai, and Shenzhen. Over one-fifth of all urban homes — 65 million in all — sit vacant.”
China relied on “a surplus of cheap labor, which means, by definition, wages are low. You can only compete with the entire rest of the world for so long — and neither do you want to. Low-value manufacturing has long since moved South, to places like Vietnam, Laos, and Bangladesh.”
All the long-hanging fruits of infrastructure spending have already been built.
“Individually, Chinese consumers really don’t spend very much — just 32% of GDP — less than half that of the US, and far below countries like Japan and Germany. Worse, this number has actually been decreasing over time.”
“Chinese consumers are spending, but only on one thing, something not considered ‘consumption’: houses!”
China’s home ownership rate “is among the highest in the world — 90% — to much of the developed world’s mid-60s. It gets much weirder, still. If you can believe it, the majority of recent purchases have been 2nd and 3rd homes. In 2018, for instance, 87% of new home buyers already owned at least one.”
“Because the government tightly controls how much cash is allowed to leave the country, Chinese people simply don’t have a lot of options, and of them, housing is seen as the only sure thing.”
Also, given the sex imbalance mentioned above, for men, home ownership = marriage.
“For all of these reasons, prices have risen to extreme levels. In Shenzhen, Beijing, and Shanghai, it takes 40 years of the average income to afford a home.”
Most are bought before construction even begins.
And here’s where the demographics above provide a double whammy. “The majority of homebuyers, meanwhile, are aged between 20-50 — precisely the segment China will soon lose.”
One huge reason for the bubble: Local governments using their control of land to balance their budgets:
They created what are basically state-owned shell companies called “Local Government Financing Vehicles”. They gave these LGFVs free valuable land, which they then used to take out loans that local governments themselves couldn’t. The trick is that because their debt is hidden, local governments appear far healthier than they really are, while at the same time, meeting the quotas set by Beijing. Following the 2008 crisis, LGFVs transformed from a little quirk of its financial system to the backbone of local economies. If these ‘financing vehicles’ default on their loans, or if housing prices fall too steeply, local governments now have just as much to lose as homeowners. If a local government stops taking out loans, it instantly loses over a third of its revenue, causing a different kind of doomsday. So while the central government may direct local officials to control their debt, the best they can really do is feign cooperation.
Flu Manchu only temporarily halted home price rises, and they’re still soaring.
“Solutions are far too costly to assume their implementation.”
There are a lot more videos of China suckage, but I’ll have to split this up and get to those another time.
Another week of the impeachment farce, another week of an embarrassing nothingburger and bombing ratings for Democrats:
Week one impeachment farce summary: “None of those three witnesses were have met with the President, none of them were on the July 25th phone call, and none of them have firsthand information, and none of them are aware of any criminal activity or impeachable offense. In short, why are we here?” (Hat tip: Director Blue.)
The half dozen seminal columns I published for The Hill on Ukraine were already supported by overwhelming documentation (all embedded in the story) and on-the-record interviews captured on video. They made three salient and simple points:
Hunter Biden’s hiring by the Ukrainian gas firm Burisma Holdings, while it was under a corruption investigation, posed the appearance of a conflict of interest for his father. That’s because Vice President Joe Biden oversaw US-Ukraine policy and forced the firing of the Ukrainian prosecutor overseeing the case.
Ukraine officials had an uneasy relationship with our embassy in Kiev because State Department officials exerted pressure on Ukraine prosecutors to drop certain cases against activists, including one group partly funded by George Soros.
There were efforts around Ukraine in 2016 to influence the US election, that included a request from a DNC contractor for dirt on Manafort, an OpEd from Ukraine’s US ambassador slamming Trump and the release of law enforcement evidence by Ukrainian officials that a Ukraine court concluded was an improper interference in the US election.
All three of these points have since been validated by the sworn testimony of Schiff’s witnesses this month, starting with the Bidens.
Schiff and Pelosi are racing two clocks: The narrative clock for dropping the Horowitz IG report into FISA, etc. abuse, and the judicial clock against three different court cases that might derail the farce. And since they just went into their Thanksgiving break, the House only has eight voting days in December to do it and pass a budget before leaving for the Christmas brealk.
“[Democratic] Former Baltimore Mayor Pugh indicted on 11 counts of fraud, tax evasion in ‘Healthy Holly’ book scandal.” (You only have to get six paragraphs in to learn that Pugh is a Democrat. Progress!)
Federal prosecutors have charged former Baltimore Mayor Catherine Pugh with 11 counts of fraud, tax evasion and conspiracy in what they allege was a corrupt scheme involving her sales of a self-published children’s book series.
In a grand jury indictment made public Wednesday, prosecutors allege Pugh defrauded area businesses and nonprofit organizations with nearly $800,000 in sales of her “Healthy Holly” books to unlawfully enrich herself, promote her political career and illegally fund her campaign for mayor.
Though her customers ordered more than 100,000 copies of the books, the indictment says Pugh failed to print thousands of copies, double-sold others and took some to use for self-promotion. Pugh, 69, used the profits to buy a house, pay down debt, and make illegal straw donations to her campaign, prosecutors allege.
At the same time, prosecutors said, she was evading taxes. In 2016, for instance, when she was a state senator and ran for mayor, she told the Internal Revenue Service she had made just $31,000. In fact, her income was more than $322,000 that year ― meaning she shorted the federal government of about $100,000 in taxes, according to the U.S. attorney’s office.
The charges Pugh faces carry potential sentences totaling 175 years in prison. Prosecutors are seeking to seize $769,688 of her profits, along with her current home in Ashburton, which they allege she bought and renovated with fraudulently obtained funds.
Uncle Sam is not omniscient, but if you’re a public official and you’re taking in ten times as much money as you declare, yeah, I bet they’re gonna figure that one out, Crooked Kathy.
Speaking of Democratic Party mayors being indicted, Mayors Against Illegal Guns member Dennis Tyler, mayor of Muncie, Indiana, was arrested by the FBI as part of a corruption probe. (Hat tip: Stephen Green at Instapundit.)
Last January, former Muncie Building Commissioner Craig Nichols pleaded guilty to wire fraud and money laundering. He was sentenced to two years in federal prison.
Others charged in the federal corruption probe include Muncie Sanitary District Administrator Debra Nicole Grigsby, Muncie Sanitary District official Tracy Barton; and local businessmen Jeffrey Burke, Tony Franklin and Rodney A. Barber.
The Russian government has for the past four years been fighting to keep 29-year-old alleged cybercriminal Alexei Burkov from being extradited by Israel to the United States. When Israeli authorities turned down requests to send him back to Russia — supposedly to face separate hacking charges there — the Russians then imprisoned an Israeli woman for seven years on trumped-up drug charges in a bid to trade prisoners. That effort failed as well, and Burkov had his first appearance in a U.S. court last week. What follows are some clues that might explain why the Russians are so eager to reclaim this young man.
On the surface, the charges the U.S. government has leveled against Burkov may seem fairly unremarkable: Prosecutors say he ran a credit card fraud forum called CardPlanet that sold more than 150,000 stolen cards.
However, a deep dive into the various pseudonyms allegedly used by Burkov suggests this individual may be one of the most connected and skilled malicious hackers ever apprehended by U.S. authorities, and that the Russian government is probably concerned that he simply knows too much.
There seem to be very few elite Russian hacking organizations Burkov, AKA “K0pa,” didn’t have a key administrative role in.
Speaking of hacking: “Ghost ships, crop circles, and soft gold: A GPS mystery in Shanghai.” Somebody in Shanghai has been spoofing GPS signals to make ships (and anything else using GPS) appear they’re someplace else, and GPS experts don’t understand how they’re doing it. (Hat tip: Borepatch.)
Foreign-born researchers working at U.S. agencies secretly joined China’s payroll, sending sensitive U.S.-funded research to the country while U.S. government agencies took almost no defensive measures against a major recruitment operation, a Senate investigation found.
Researchers linked to the Chinese government formed a Chinese cell within the Department of Energy, attained access to American genomic data, and recruited other U.S. researchers to join, the bipartisan report stated.
China’s Thousand Talents Plan (TTP) aims to get foreign governments to finance the communist power’s military and economy by buying off researchers who are doing work abroad. The experts apply to the program, and if approved by the Communist Party, they join China’s payroll and sign secret side agreements that the experts will share their research with that country, according to the investigation.
The Clinton Foundation suffered a $16.8 million loss in 2018. It’s a great mystery how that could have happened…
The upcoming UK election is no longer an election about Brexit, it’s an election about how incredibly unpopular Labour leader Jeremy Corbyn is. UK Prime Minister Boris Johnson enjoys a mere plus 4% favorability rating. Corbyn has a minus 43% favorability rating. “This election is no longer primarily about Brexit, it’s primarily about Corbyn and his extreme socialist policies! Corbyn is rightfully getting clobbered.”
The sudden move by the oil-rich regime to ration gasoline and hike fuel prices is a direct result of President Donald Trump’s strategy of “maximum pressure” against Tehran. While the regime thrived under the Obama administration, which handed billions of dollars to Tehran for signing the nuclear deal, the current administration has reinstated stiff sanctions against the ruling Mullahs.
After President Trump withdrew the U.S. from the 2015 deal, the sanctions have crippled Iran’s state-run oil, shipping, and banking sectors. The U.S. government implemented the sanctions against the regime’s top brass and the IRGC, which controls critical sectors of the Iranian economy.
“Reuters Deletes Story Meant to Make Trump Look Bad After Realizing it Made Obama Look Bad.” The Ministry of Truth confirms that this story has been rectified.
