WASHINGTON — The Trump administration escalated what had been a war of words over California’s immigration agenda, filing a lawsuit late Tuesday that amounted to a pre-emptive strike against the liberal state’s so-called sanctuary laws.

The Justice Department sued California; Gov. Jerry Brown; and the state’s attorney general, Xavier Becerra, over three state laws passed in recent months, saying they made it impossible for federal immigration officials to do their jobs and deport criminals who were born outside the United States. The Justice Department called the laws unconstitutional and asked a judge to block them.

The lawsuit was the department’s boldest attack yet against California, one of the strongest opponents of the Trump administration’s efforts to curb immigration. It also served as a warning to Democratic lawmakers and elected officials nationwide who have enacted sanctuary policies that provide protections for undocumented immigrants.


“The Department of Justice and the Trump administration are going to fight these unjust, unfair and unconstitutional policies that have been imposed on you,” Attorney General Jeff Sessions planned to say on Wednesday at a law enforcement event in Sacramento, according to prepared remarks. “I believe that we are going to win.”

The battle pits President Trump and Mr. Sessions, immigration hard-liners, against Mr. Brown and Mr. Becerra, who have emerged as outspoken adversaries who have helped energize opposition to Mr. Trump and vowed to preserve the progressive values that they believe California embodies.

The lawsuit claims that the statutes “reflect a deliberate effort by California to obstruct the United States’ enforcement of federal immigration law.” It also says the laws regulate private entities that want to cooperate with the federal authorities and “impede consultation and communication between federal and state law enforcement officials.”

Mr. Brown called the lawsuit a “political stunt.”

“At a time of unprecedented political turmoil, Jeff Sessions has come to California to further divide and polarize America,” Mr. Brown said in a statement. “Jeff, these political stunts may be the norm in Washington, but they don’t work here. SAD!!!”

California began battling the Trump administration even before Mr. Trump took office, standing in opposition on a number of issues, including marijuana, environmental regulations and taxes. But immigration has proved to be the most contentious fight, with local officials assuring undocumented immigrants that they would do all they could to protect them.

Last year, California enacted the sanctuary laws, which restrict when and how local law enforcement can cooperate with federal immigration enforcement officers.

Both Mr. Sessions and Mr. Trump have threatened to pull federal grant money from cities and states that have sanctuary laws to protect undocumented immigrants. They argue that the policies flout federal laws and help criminals evade deportation.

And the Justice Department asked 23 jurisdictions across the country this year to provide documentation that they had not kept information from federal immigration authorities, or receive a subpoena for the information. It is also exploring possible criminal charges for local politicians who enact sanctuary policies.

The lawsuit filed on Tuesday evening in Federal District Court in Sacramento is the first against a local or state government over its immigration policies filed by the Justice Department under Mr. Sessions. Department officials said that they would not rule out the possibility of other lawsuits against local governments whose policies interfere with the federal government’s authority on immigration. Colorado, Illinois, New Mexico, Oregon and Vermont have state sanctuary laws, as do cities and counties in more than a dozen states, according to the Center for Immigration Studies.

One, the California Values Act, strictly limits state and local agencies from sharing information with federal officers about criminals or suspects unless they have been convicted of serious crimes. The law, which took effect Jan. 1, was the centerpiece of the State Legislature’s effort to thwart the Trump administration’s immigration policies.

Soon after the law was enacted, Thomas D. Homan, the acting director of United States Immigration and Customs Enforcement, said that the state should expect to see “a lot more deportation officers” and that elected officials who support the policy should be arrested.

“We’ve got to start charging some of these politicians with crimes,” he said. “These politicians can’t make these decisions and be held unaccountable for people dying. I mean, we need to hold these politicians accountable for their actions.”

Mr. Homan and three other immigration and border protection officials filed declarations with the suit claiming that California’s laws had already negatively affected their work.

“The administration is just angry that a state has stood up to them — one that embraces diversity and inclusivity and is the sixth-largest economy in the world thanks to the hard-working immigrants who want to become American citizens,” said Kevin de León, the leader of the California State Senate who wrote one of the sanctuary city laws named in the suit.

State lawmakers also passed the Immigrant Worker Protection Act, which prohibits local business from allowing immigration to gain access to employee records without a court order or subpoena. Mr. Becerra warned that anyone who violated the new law would face a fine of up to $10,000.

In the state budget bill, California lawmakers prohibited new contracts for immigration detention in the state and gave the state attorney general the power to monitor all state immigration detention centers.

The state and several local governments including the cities of San Francisco and Sacramento have also set up legal defense funds to help defend immigrants during deportation proceedings.

“I’m worried about the ‘Dreamers,’ hard-working immigrant families and law-abiding people who are just trying to make their way like the rest of us,” Mayor Darrell Steinberg of Sacramento said this year when asked about the state’s sanctuary legislation. “Civil disobedience is a respectful way to show your love for country.”

Tensions between local and federal officials reached yet another height last week, when Mayor Libby Schaaf of Oakland publicly warned of coming large-scale immigration arrest operations. Mr. Homan compared the mayor to a “gang lookout yelling, “Police!” and said she gave people living in the United States illegally a chance to flee. He said her warning meant that the federal immigration authorities arrested about 200 people rather than the 1,000 they had anticipated rounding up.

Although Mr. Homan and other federal officials have warned about targeting California as it steps up immigration enforcement efforts, the number of people arrested has not drastically increased so far. In December, the most recent month for which data is available, 1,715 unauthorized immigrants in California were arrested by ICE, compared with 1,379 in December 2016.

This is not the first time that the Justice Department has sued a state. During the Obama administration, the department filed a civil rights lawsuit against Georgia for segregating students with disabilities from classrooms and sued North Carolina over a bill to restrict bathroom use for transgender citizens. Mr. Sessions withdrew that lawsuit.

In a call with reporters on Tuesday night, Mr. Becerra said that he was confident California would prevail in court and that state and federal laws were not in conflict.

“In California, our state laws work in concert with federal law,” he said. “Our teams work together to go after drug dealers and go after gang violence. What we won’t do is change from being focused on public safety. We’re in the business of public safety, not deportation.”

Mr. Becerra said that he was not surprised by the news of the lawsuit and that the state had already won legal battles against the Trump administration. “We’ve seen this B-rated movie before,” he said. “We’re not doing their bidding on immigration enforcement and deportation.”



WASHINGTON (Sputnik) – Turkey’s upcoming purchase of S-400 air defense missiles systems from Russia could trigger US secondary sanctions against Ankara, a new report on Washington’s relations with Ankara from the Turkish Heritage Organization said.

“There are concerns that it [deal] could trigger US sanctions in 2018 under the “Countering America’s Adversaries Through Sanctions Act” (CAATSA) which was signed into law in August 2017,” the report said on Monday.

In December, Russia and Turkey signed a loan agreement on the supply of Russia’s S-400 air defense missile systems to Turkey.

Plans by Moscow and Ankara to push ahead with the proposed Turkish Stream pipeline will increase Turkey’s dependence on Russia for its energy and will also run the risk of provoking US retaliatory sanctions, the report added.

“In 2017, over 50 percent of Turkey’s natural gas imports came from Russia… Despite Turkey’s desire to wean itself off Russian energy, progress on the Turk-Stream national pipeline will do the opposite in 2018 and could even trigger US sanctions, the report said.

Continued US support for the Kurdish People’s Protection Units (YPG) operating east of the Euphrates River in Syria with US support indicates that Washington and Ankara will experience continued tensions on the issue this year, the report added.


China has been actively expanding its influence to the Middle East, and engaging war-torn Syria as part of its signature Belt and Road Initiative (BRI) has been a case in point.

On November 24, Chinese Foreign Minister Wang Yi met with Political and Media Advisor to the Syrian President Bouthaina Shaaban in Beijing. During the meeting, Wang offered to support Syria’s reconstruction.

In early November, Syrian government forces and their pro-government allies announced that they won another victory over Islamic State of Iraq and Syria (ISIS) militants and were in full control of Deir el-Zour, the largest city in eastern Syria. The Syrian government led by President Bashar al-Assad appears to be winning the war against ISIS for now.

According to Chinese foreign ministry, during his meeting with Bouthaina Shaaban, Wang proposed three focal points — counter-terrorism, dialogue and reconstruction –for solving the Syrian issue as “the situation in Syria is turning into a new stage.” He emphasized that anti-terrorism as the foundation, dialogue as the way out and reconstruction as the guarantee.

Regarding “dialogue,” Wang claimed that it is the “only way out” for solving the Syrian issue. “In this process, we must safeguard the sovereignty, independence and territorial integrity of Syria and maintain the core status of the Syrian people in the political settlement process,” Wang said.

Wang also expressed willingness to help with Syria’s reconstruction. He said that “only by advancing reconstruction steadily can we give the Syrian people hope and provide guarantee for the long-term peace and stability in Syria. ”

“The international community should attach importance to and actively support the reconstruction of Syria,” Wang added. “China will also make its own efforts to this end.”

Yet, this stance seems to be at odds with that of many Western and Arab countries.

In September, Canada, Denmark, Egypt, European Union, France, Germany, Italy, Jordan, Netherlands, Norway, Qatar, Saudi Arabia, Sweden, Turkey, United Arab Emirates, the United Kingdom, and the United States issued a joint statement, stressing that “Recovery and reconstruction support for Syria hinges on a credible political process leading to a genuine political transition that can be supported by a majority of the Syrian people.”

Thus, China, together with Russia and Iran, has become the major potential helper with reconstruction for current Syrian government.

At the regular press briefing on November 29, Chinese foreign ministry spokesperson Geng Shuang explained China’s motive for actively engaging Syria and other Middle East countries recently. He said:

Too many people in the Middle East are suffering at the brutal hands of terrorists…We support countries in the region in exploring a development path suited to their national conditions and are ready to share governance experience and jointly build the Belt and Road and promote peace and stability through common development.

On November 21, China just delivered 1,000 tons of rice to Syria as part of its food aid plan under the BRI. According to China’s state media, China has already signed three agreements with the Syrian government to provide humanitarian aid to Syria worth over $40 million in the first half of 2017.

In September, while attending the United Nations General Assembly in New York, Wang also directly asked Syrian Deputy Prime Minister and Foreign Minister Walid Muallem to join China’s BRI, since “Syria is an important node in the ancient Silk Road and that the ‘Belt and Road’ construction can serve as an important opportunity for bilateral cooperation in future. ”

In response, Syria has shown enthusiasm to attract Chinese cash, too. For instance, early in July, the China-Arab Exchange Association and the Syrian Embassy in Beijing held a special event, inviting 1,000 representatives of Chinese companies to invest on Syria’s reconstruction. During the event, Syrian Ambassador in Beijing Imad Mustafa said that Chinese companies are expected to play a big role in the future reconstruction phase and the Syrian government will give top priority to Chinese companies in investment and reconstruction opportunities.





African American Social Experiment Gone Wrong! Part 2


Will the rise of China mean the fall of America? In a word, yes. Although decline might be more accurate.

Why do I think this? Because China is about to launch the PetroYuan and when it does the demand for dollars and for dollar denominated debt will shrink. When it does, I question whether the world will be so sanguine about the level of debt that America carries. If that happens then the value of the dollar is in question.

At the moment no matter what level of debt America carries, other countries need dollars. Dollars to pay for oil, since oil is traded in dollars. Dollars for their financial system so their banks can settle contracts for goods and services traded in dollars.

But over the last few years China has been systematically putting in place everything it needs to launch the Yuan as not only a rival to the dollar in trading and settling oil contracts but as a rival to the dollar as the world’s reserve currency. At the moment the only rival to the dollar is the Euro. I think it fair to say the relationship between the two currencies and their issuing powers, has been… ‘delicate’. The news that Sadam Hussein was going to start trading his oil in Euros came just a few months before America and its lap dog GB, decided Sadam was a threat to world peace and went to war with him. Something similar happened to Colonel Qaddafi.

Under Qaddafi Libya’s currency was backed by the country’s large holdings of gold and silver. This had allowed Qaddafi to finance, for example, the entire construction of the Great Man Made River without going to Western banks for a single loan. Libya was debt free and owned its own resources and infrastructure. Obviously a very unsatisfactory state of affairs for any third world country to get ideas so far above their station. Worse, he had a very public plan which he had laid before the Pan African Congress, to create a pan African currency backed by gold and silver to be launched by 2023. It was not too long before Hilary Clinton arrived in a freshly bombed Libya and crowed to CBS, “We came, we saw, he died.” Charming woman. I was only surprised she didn’t say “Mission accomplished.”

Libya and Iraq were small enough, that their pretensions to threaten the hegemony of the dollar and have the jumped up arrogance to think they could trade their own resources in their own currency or a currency of their choice, could be dealt with by shock, awe and death. I think China might not be so easily dealt with.

China’s plans for the replacement of the dollar and the positioning of their own currency are very like Libya’s. China too has had the idea to back its new settlement and perhaps one day its reserve currency, with gold. And China is not alone. Russia has been a part of the BRIC group with an interest in the plan. Russia, like China has been a very large buyer of gold.


As reported just a few weeks ago by the Irish Independent,

…the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Mr Putin’s 17 years in power, according to World Gold Council data.

In the second quarter alone, it accounted for 38pc of all gold purchased by central banks.

The article goes on to explain how purchasing gold has meant that Russia has not had to buy foreign currencies. For foreign currencies think Dollars.

The gold rush is allowing the Bank of Russia to continue growing its reserves while abstaining from purchases of foreign currency for more than two years.

China and Russia have very large holdings of gold between them. China actually produces 12% of the world’s gold and keeps much if not most of what it produces. The new Petro Yuan will be backed by Gold, Something the IMF decades ago, said no paper currency should have. A clear break with the Bretton Woods Dollar-world agreement.

Who will use this new currency? Over the past few years a network of bilateral agreements has been created around China and Russia. Back in 2012, in an article called A new Reserve currency to challenge the dollar – What’s really going on in The Straits of Hormuz, I pointed out that not only had China and Russia agreed to bypass the dollar and trade direct in their own currencies but that,

the India Times reported that India was talking to Iran about moving out of dollar settlements so as to be able to buy Iranian oil despite a US embargo. India said it was discussing settling in Gold. Remember, India has just signed a settlement agreement with China to use the Yuan.

Remember also, Russia recently eclipsed Saudi as the number one supplier of China’s oil. And if I remember correctly Angola was number two. Promoting perhaps the recent state visit this year of Saudi’s King Salman to see Mr Putin. As The Guardian put it,


Saudi king’s visit to Russia heralds shift in global power structure

King Salman agrees new areas of cooperation with Vladimir Putin on first official trip by Saudi monarch to Moscow

In addition Japan and China have agreed to trade in Yuan, by-passing the dollar, as has Iran. They are now trading their oil in Yuan or euros, but not the dollar. Ever wondered why Iran is ‘the axis of evil? It’s because they don’t use the dollar.

Then came the news in 2015 that Qatar had opened the first and so far only financial centre in the Middle East, for trading and clearing oil, gas and anything else, in Yuan. China’s ICBC is the central banking concern in the hub, allowing any Middle Eastern country to trade oil and gas and settle in Yuan. In the previous few years China’s trade with Qatar had tripled. And now, guess what? Qatar has been declared by the US to be a sponsor of terrorism and US allies in the gulf , led by Saudi, have begun to blockade Qatar’s trade. Hmm. Any pattern emerging?

The problem for the US is how much debt is too much for any country or business? Clearly it is not any magic figure or particular debt to GDP ratio. America and China carry huge debts and no one has balked…yet. How much debt you can carry is a function of debt to the estimated future productive capacity of the country in question. That creates the demand for its currency and the demand for the currency creates a market and demand for debt denominated in that currency.

At the moment the US can carry a huge debt load because everyone needs dollars to trade oil. And China can carry a huge debt because everyone needs yuan to buy the goods whose production was off-shored to China by our globalist leadership.

But what happens to demand for Dollars and dollar debt when, not if, oil starts to be traded less and less in dollars? I suggest the world’s appetite will diminish quite quickly. As it does so, the world will start to see US debt in a different light. While the opposite will happen to China. And this is what interests me and makes me think China has a plan.

At the moment China also has a very large debt load. I have argued that the Central Chinese authorities have not got the control they would like to have over the growth of that debt. Of course I have no inside information. But the on again/ off again attempts of the Chinese central authorities to deflate its housing-debt bubble and its quite out-of-control shadow banking lending suggests, to me at least, that the central authorities have not and can not control the level of debt being accumulated by provincial governments, their off-book, arm’s length financial vehicles, regional banks, property developers and the vast, largely unregulated trade in wealth management vehicles.

Chinese debt already overflowed once back in the 90’s. Four companies were created to take the debt off the banks’ books and trade it away. Decades later these companies still exist and still have the bad debts from the 90’s hanging around. You will see headlines telling you how those companies have been doing well, making money. Suggesting their trade in bad chinese debt has been going well. The reality, if you dig a little deeper, is that those companies lobbied for and were given permission to engage in ‘proper’ banking activities. Which meant they began to make their own loans – to property developers. As the property bubble continued to inflate over the last decade and a half they have ridden it and that, not trading the old bad-debt, is why they have made a profit. But now those ‘bad’ banks, have themselves started to find some of their own loans going bad. In any hard-landing or financial paroxysm the ‘bad-banks’ will need to be rescued by a new bad banks. Bad banks for bad banks is not really a solution.

I think the Chinese authorities can see this. It doesn’t take a genius after all. What can they do? Well if you already have a huge debt problem and know many of them are going to go bad and will do so overnight in the event of another global banking crisis, and know you are not able to reign it all in, then a very tempting alternative would be to get the world to agree that you can carry more debt – a lot more. And what could help convince the world? Well if your currency could become far more sought after, that would be peachy.

And so I think the long standing Chinese goal of making the yuan

an important international currency which China, and Hong Kong in particular, have been working towards for years, has now taken on a far greater import and urgency. I think the Chinese central government’s best way of avoiding a politically disastrous domestic debt implosion is to get the Yuan to be used as a settlement currency for oil and not long after that to become a de facto rival to the dollar as the world’s reserve currency.

Recently I argued at length with a military analyst who disagreed that China would risk such a break with America. Too dangerous he felt. China, he pointed out has such huge holdings of American debt. He argued that the Chinese would prefer to work alongside the dollar. I feel that even if the Chinese would prefer to ‘work alongside’ the dollar, this will prove very difficult if not impossible. Once a flow of countries and trade moves away from the dollar there will be a momentum the Chinese will not be in control of. Cooperation between dollar and Yuan as clearing and reserve currency, especially for oil, will be like trying to dock two super-tankers in a high sea. In theory possible. In practice – not going to work.

As for Chinese holdings of US debt – I think the advantages of avoiding a domestic debt implosion and projecting the Yuan to world centre stage, will outweigh the losses. I also think, If I were the Chinese, I would imagine a scenario where the dollar does begin to look vulnerable. Its value begins to be questioned, nations holding dollars and dollar debt will feel America’s profligate indebtedness is a global danger. They will blame America. How wonderful then, for China to arrive and say to a worried world, on the edge of a huge crisis, “Fear not, we have thought ahead and can offer you the use of a new currency – one backed by GOLD not paper debts. We are here to save you. To offer a ride on a sound ship as an alternative to the rotten and leaking ship you have been riding on.” China will be able to position their rise not as an aggressive act, not as trying to destabilise the world, but as trying to save it, from the collapse of an internally divided, corrupt, aggressive and indebted America.

America’s decline will be both financial and political. Financial due to the recalibration of what the world thinks of America’s debt load, and therefore their confidence in and need for the dollar. Political, because America

has got used to being able to enforce its foreign policy through sanctions and embargoes. But once oil and other goods and the nations trading in them, no longer need the dollar for their trade, and do not have to use US clearing or custodial banks, then this power evaporates.

Try to imagine the shift in power when Wall Street’s banks are no longer guaranteed top position as the world’s custodial banks and Manhattan’s Southern District Court (Wall Street’s court) is no longer in a position to dictate to whole nations via decisions upon Wall Street Custodial banks, what debts those nations and their custodial banks must pay and to whom. The whole edifice of Bilateral Investment Treaties and the trade agreements they sit inside, depends for enforcement upon the US banks being the custodial banks and the Southern District court’s rulings being able to tell those banks what they must do. Take that power away, which will happen if the dollar is no longer pre-emininent, and America will no longer be able to enforce its foreign policy or world view via economic sanction.

I think the main US banks will be positioning themselves to try to bridge this decline by having a major presence in Hong Kong. They are all already there but will be working to be part of the new Yuan-world of trade and clearing.

Of course this is speculation. But it seems to me the underlying evidence of the previous decade makes it worth thinking about.

If I am in any way correct then I think other things follow.

I think the House of Saud knows it’s future is in question. I have written a lot about how I see Qatar rising to rival Saudi. Qatar not Saudi has the Yuan clearing house. Saudi is late to the party. Can Saudi risk being seen to move away from its

traditional ally, America? If it does, too quickly, and signs yuan trade deals it risks falling as soon as Americal turns its back. If it doesn’t move quickly enough it risks being completely eclipsed by Qatar, having to go to Qatar cap in hand to trade its oil with Russia and China.

I see the political changes within the House of Saud as signs of the internal struggles to decide which way to go. I personally think the House of Saud will fall.

I also think the position of Israel under its present leadership is also very fragile. Israel needs Saudi. While they may seem to be on opposite sides, in many ways they are on the same side. If the House of Saud falls or changes allegiances from America to Russia/China then Israel will become even more isolated than it is. And of course if America is eclipsed and does enter a period of decline, then Israel will go with it.

If any of the above is near the mark, will it mean the end of America? Of course not. American’s will still work and sleep and raise their children like everyone else. But the pre-eminence of the dollar and American finance will decline as the stock of dollar denominated bonds and debt agreements expires, and with it the power and wealth of many of America’s elite. How that decline will sit alongside America’s still overwhelming military power I don’t know.

Of course what I have suggested above is merely speculation but personally I think another debt crisis will happen, because never ending QE and Central Bank debt buying cannot go one for ever, and what China does in the next few months could very well destabilise the whole unstable system. Many people will suffer and lives will be blighted. But I wonder if, when we all look back from a decade or a generation after, if we won’t think it lucky the crisis did finally come and the system we have been slaving under since 2007 as well as those who have forced it upon us for their own enrichment, were called to account.

It is difficult to accept that such historic changes could occur. But history has not ended despite what some have claimed.

Rumours of History’s end have been, in my opinion, greatly exaggerated. History is very much alive and happening to us, now. We are, as the Chinese saying goes, living in interesting times.



A scribbled note by Albert Einstein which described his theory on the key to happy living was sold at auction in Jerusalem for $1.56m.

According to The Telegraph, the winning bid for the note far exceeded the pre-auction estimate of between $5,000 and $8,000, according to the website of Winner’s auction house.

“It was an all-time record for an auction of a document in Israel,” Winner’s spokesman Meni Chadad told AFP…Bidding in person, online and by phone, started at $2,000. A flurry of offers pushed the price rapidly up for about 20 minutes until the final two potential buyers bid against each other by phone. Applause broke out in the room when the sale was announced.

The newspaper reports that Einstein was on a lecture tour of Japan in 1922 and had recently been awarded the Nobel prize. Einstein didn’t have cash to pay a tip to a bellboy in the Imperial Hotel in Tokyo, so he gave him two notes, predicting they would be worth more than a tip. He is reported have said.

“Maybe if you’re lucky those notes will become much more valuable than just a regular tip.”

The Telegraph continues, Einstein dedicated his life to science, but suggested in the notes that fulfilling a long-term ambition doesn’t necessarily guarantee happiness.

The note said.

“A quiet and modest life brings more joy than a pursuit of success bound with constant unrest.”

The anonymous buyer was from Europe.

The notes were sold by an anonymous Hamburg resident who commented “I am really happy that there are people out there who are still interested in science and history and timeless deliveries in a world which is developing so fast.”

On the second note was written “where there’s a will, there’s a way”. It sold for $240,000.