acting-man.com / By Pater Tenebrarum / August 20, 2014
Austria Threatened by Apple-Berg
It turns out that Austria’s apple growers are also victims of the counter-sanctions recently imposed by Vlad the Terrible in the form of a new diet plan for Russia. How could you, Vladimir Vladimirovich? Haven’t the Austrian’s dutifully signed off on South Stream, in a rare display of political sanity?
As the Austrian press reports, a cunning plan to blunt Putler’s perfidious revenge on the EU is in the works:
“Russia’s import ban for perishable foodstuffs also hits Austria, minister of agriculture Rupprechter calls for more fruit and vegetable consumption.
In Austria, agriculture minister Andrä Rupprechter wants to primarily boost domestic consumption, as according to a report in the “ORF Morning Journal” [local TV station, ed.], local fruit growers are already feeling the effects of the lack of exports to Russia: Thus prices for apples have declined already prior to the main harvest. Rupprechter calculated the losses for Austria’s agricultural and food sector overall to amount to 4.5 m. euro as last week already, the report stated further.
Austria’s population could however help, by focusing its consumption on domestic fruit and vegetables.
“If everybody eats one additional apple per week, we could handle losing this market”.
zerohedge.com / by Tyler Durden on 08/20/2014 13:24
From Jeremy Grantham’s GMO:
We have been writing quite a bit about why asset allocation today is in one of the toughest investing environments we’ve ever encountered. And it’s not just because we think equity markets are overvalued. No, we’ve seen that plenty of times before over the past decade or so. Remember the technology bubble of the late ’90s? That was challenging, sure, but what got lost in the shuffle was that while U.S. large-cap stocks were outrageously overpriced, it turned out that real estate investment trusts, emerging equities, and international small caps were deliciously priced. And it was perfectly clear to us what we had to do: avoid technology and own the cheap stuff, even though it might have looked a bit unconventional. Then we entered the 2007–2008 credit bubble, and while, yes, virtually all equity markets were overpriced, it was perfectly clear to us what we had to do: hide and wait. And that was not a bad proposition because there were plenty of safe places to hide—Treasury Inflation-Protected Securities, U.S. Treasuries, and a strategy we had developed called Alpha Only—and earn a decent, if not spectacular, return.
mises.org / by Christopher Mayer / August 20, 2014
“The world is in permanent monetary crisis,” Murray N. Rothbard once observed, “but once in a while, the crisis flares up acutely, and we noisily shift gears from one flawed monetary system to another.” Monetary systems built on floating fiat currencies are fragile things. Most of the world currently operates under this arrangement.
The only thing worse, in Rothbard’s estimation, was fixed exchange rates based on fiat money and international coordination. Markets are fluid and changing. The government fixed exchange rate is bound to be either too high or too low — with problems in either case. The history of attempting to maintain some fixed exchange rates by international agreement has a long, rich history of failure, once again illustrating that government power is no match for the relentless and merciless forces of the market. All of which does not bode well for China’s ability to maintain its own fixed exchange rate against the dollar.
lfb.org / BY CLEM CHAMBERS / AUG 20, 2014
“Stop tax inversion by American corporations” is the latest war cry of American socialists. Obama is infuriated that U.S. corporations want to be American no more and is going to stop it.
Tax inversion is a method whereby a U.S. multinational company takes over a foreign company and creates a new corporate entity that the U.S. “tax inversion” uses to leave U.S. tax jurisdiction (the newly created company re-incorporates overseas). With a single takeover the U.S. corporation is no longer American — it might be British or Irish and subsequently pay a much lower rate of tax.
On the surface, why should stinking corporations get away with not paying taxes? The U.S. government needs more money and corporations have got it. From a socialist point of view this is dead right. To paraphrase Margaret Thatcher, socialists have no problems so long as they don’t run out of other people’s money.
zerohedge.com / by Tyler Durden on 08/20/2014 12:43
Reports are coming in that, following Russian ministry urging this morning that the humanitarian mission start as soon as possible (following ongoing Ukrainian attacks on Donetsk and Eastern Ukraine), that the white humanitarian trucks of the Russian convoy are crossing the border into Ukraine customs.
As RT reports,
The first 16 trucks with Russian humanitarian aid to the residents of the Donetsk and Lugansk Regions of Ukraine are going through customs inspections at the Donetsk checkpoint on the Russia-Ukraine border.
armstrongeconomics.com / By Martin Armstrong / August 20, 2014
Theresa Mary May PC MP (born October 1st, 1956) is a British Conservative politician, and the current UK Home Secretary. She was first elected to Parliament in 1997 as Member of Parliament for Maidenhead. She went on to be appointed Chairman of the Conservative Party and was sworn of Her Majesty’s Most Honourable Privy Council in 2002. She has served in a number of roles in the Shadow Cabinets, but she is no Margaret Thatcher. When Cameron became Prime Minister in May 2010, May was appointed Home Secretary
It is May who has summoned the internet giant Yahoo for an urgent meeting to raise security concerns after the company announced plans to move to Dublin where it is beyond the reach of Britain’s surveillance laws. Yahoo is moving to Dublin exiting London as its center for European, Middle East and Africa operations. In Dublin, Yahoo cannot be forced to hand over information demanded by Scotland Yard and the intelligence agencies through “warrants” issued under Britain’s controversial anti-terror laws.
zerohedge.com / by Tyler Durden on 08/20/2014 11:38
Sanctions blowback? Russian food safety watchdog Rospotrebnadzor has ordered the closure of four McDonalds restaurants in Moscow, according to Reuters, due to “numerous sanitary breaches.”
- *MOSCOW TEMPORARILY CLOSES SEVERAL MCDONALD’S RESTAURANTS
This was not entirely a surprise since Russia had previously raised concerns over McDonalds cheese and wasangered when the fast-food restaurant ceased operations in Crimea. This also comes on the heels ofMcDonalds problems in China and Japan over food supply issues. It appears the “tangible losses” Putin promised, are beginning.
financialsense.com / SHERAZ MIAN / 08/20/2014
The Fed remains in the spotlight today, with minutes of its last meeting coming out later this afternoon and the annual Jackson Hole meeting getting underway tomorrow.
The risk in today’s Fed minutes center on the market’s dovish expectations from the Fed; investors aren’t expecting the minutes to show any new discussion that would indicate that the members may be willing to start the QE tightening process earlier than currently expected. The July 29-30 meeting whose minutes are coming out this afternoon resulted in another $10 billion cut to its bond purchases, putting the Fed on track to end the QE program by October. The consensus view is that the Fed will start raising interest rates in July 2015.
But there is a big divergence in the market with respect to the pace of interest rate normalization following the first rate hike. A still small — but growing — segment of the market believes that the Fed will take a lot longer to normalize rates than was the case in prior cycles. Proponents of this view believe that the Fed could take a six month or even a year-long hiatus from further rate hikes after the initial rate increase.
teapartyeconomist.com / by Gary North on August 20, 2014
We are assured by public health officials in the United States that Ebola is not transmitted in public places. Then we read this.
Monrovia (AFP) – Liberian President Ellen Johnson Sirleaf imposed a nighttime curfew from Wednesday and quarantined two affected neighbourhoods in a bid to stem the Ebola epidemic rampaging through West Africa.
“Commencing Wednesday, August 20 there will be a curfew from 9:00 pm to 6:00 am (2100 to 0600 GMT),” Sirleaf said in a radio address late Tuesday.
“All entertainment centres are to be closed. All video centres are to be closed at 6:00 pm,” she ordered.
The new quarantine areas include Monrovia’s West Point slum.
So, if the disease is not transmitted in public places, why is the president of Liberia imposing a nighttime curfew? What does she know that we don’t? Maybe nothing. But the fact that she would do this indicates desperation. “I have to do something, so I’ll do this.”
What is the logic of this? Morning church is OK, but evening services are illegal. This is nuts. But it’s national policy in Liberia.
VictoryIndependence, Published on Aug 20, 2014
The King Dollar is shrinking as a percentage of the world’s currency supply. China, Russia, Brazil and India are coming out with new agreements almost every week announcing direct trade in their home currencies. More and more countries are willing to use other currencies to do business.
ericpetersautos.com / by Eric Peters / August 19, 2014
Apparently, old cars now threaten the “homeland” (every time I hear that word used I feel as though I’ve been inserted into a black and white movie from the ’30s about Nazi Germany and trench coat-wearing Gestapo agents… then realize it’s our living color reality here, today).
Anyhow, this couple in Statesville, N.C. got Hut! Hut! Hutted! by a gaggle ofheimatsicherheitsdeinst (that’s “Homeland Security,” in the native tongue) agents on account of their possession of an old Land Rover Defender whose papieren were not inordnung.
“ICE (oy vey) Homeland Security Investigations special agents served court-ordered seizure warrants on approximately 40 Land Rovers in various locations around the country,” announced VIncent Picard of tough-guy acronymed ICE HSI. “The seizures were made pursuant to an ongoing criminal investigation involving the unlawful importation of vehicles from Great Britain… .”
And here’s the punchline, folks – the thing to focus on: “The Land Rovers, which do not meet federal safety or emissions standards, cannot be lawfully operated in the United States.”
washingtonsblog.com / August 20, 2014
Congress Is For Sale to the Highest Bidder
Americans of all stripes oppose the militarization of U.S. police forces.
So why does Congress continue to approve militarization? For the same reason that Congress members vote for NSA spying on Americans and go easy on Wall Street criminals: money.
Maplight reports that congress critters opposing Congressman Grayson’s bill to demilitarize police receive 73% more money than those voting for it:
wallstreetonparade.com / By Pam Martens and Russ Martens / August 20, 2014
Trader on the Open Markets Trading Desk at the Federal Reserve Bank of New York
According to the Oxford Dictionary, the word cartel can mean either businesses that seek to restrict competition or a coalition “intended to promote a mutual interest.” Under at least the second definition, the Federal Reserve Bank of New York, a key regulator of the biggest Wall Street banks’ holding companies, has been sponsoring (yes, sponsoring) a cartel for decades.
To grasp the sheer insanity of what the New York Fed is doing, imagine going to the Securities and Exchange Commission’s web site (another Wall Street regulator) and finding that it has loaned out its web site and its imprimatur to multiple Wall Street cartels writing their own rules of conduct. It sounds Orwellian doesn’t it.
zerohedge.com / by Tyler Durden on 08/20/2014 12:20
While on the surface the US economy has been chugging along from GDP-crashing “snow in the winter” to GDP-cratering “warmer|cooler than expected weather in the spring|summer|fall“, with bouts of GDP-boosting inventory accumulation inbetween, in recent months two very disturbing trends about that all important dynamo behind the economy, the US consumer, have emerged.
On one hand we wrote three weeks ago that a “shocking” 77 million, or one third, of Americans face debt collectiors: a statistic which crushes any suggestion that US household credit is substantially improving based on trends in 30, 60, or 90-day delinquency, as it means that the real pain is not at the near-end of the default/delinquency timetable, but the far end, which incidentally has just as dire an impact on one’s credit score as a plain vanilla default (and explains why none other than Fair Issac has jumped in to “adjust” its credit methodology to artificially boost FICO scores of these millions of Americans).
On the other hand, we have been closely following the ongoing deterioration of the car subprime loan bubble: something that both Bloomberg and the Fed have both also been paying close attention to recently, yet a bubble which nobody wants to burst, because as we wrote several days ago, it is none other than the subprime car loan bubble that allowed car production to surge the most last month since Obama’s Cash for Clunkers capital misallocation program, in the process lifting overall manufacturing and Industrial Production, and thus GDP.
Earlier today Experian released its latest, Q2, metrics that tie these two very worrying trends together, namely the trend in delinquencies, defaults and repossessions.
charleshughsmith.blogspot.com / by Charles Hugh Smith / WEDNESDAY, AUGUST 20, 2014
As rents climb, developers large and small take out their calculators and dreams of wealth blossom: but no, this is not bubble.
The disastrous blowback from inflating housing bubbles is painfully obvious:
as housing becomes unaffordable, households impoverish themselves to “get in now before it’s too late;” malinvestment (i.e. McMansions in the middle of nowhere) flourishes as housing becomes a speculative financial vehicle rather than shelter; retirement funds are sold designed-to-default mortgage-backed securities, and when the bubble finally pops, those lured into buying at the top are left underwater, owing more on their mortgage than their house is worth.
But there is one silver lining to housing bubbles: some of the money squandered in the speculative frenzy ends up rehabilitating old buildings or erecting new housing in useful locales.
Let’s not overstate this silver lining:
a rational, productive set of financial policies would have directed capital into useful construction without the dubious aid of a speculative bubble. Every dollar wasted on a marginal-return housing investment (for example, a shoddy house with Chinese drywall that renders it cheaper to tear the house down than attempt to fix everything that’s wrong) is a dollar that could have gone into rehabbing a well-constructed building from a previous era or building shelter that will last 100 years with little maintenance.
gold-eagle.com / By Axel Merk / August 20, 2014
Are you prepared for an “exit”? If the Fed pursues an “exit” from ultra low interest rate policy, are you prepared for an exit from the stock market should things turn South? We discuss how investors prepare, noting the most common mistakes investors make along the way.
Are you prepared for an exit?
No, you are not. We know because we meet investment advisers that have dropped their defensive strategies because they were losing clients. Those we meet that say they are prepared think they can get out at the right time should the markets topple over as the Fed exits; our guess is pigs will learn to fly before many will get that timing right. And those who don’t rely on luck are the first to tell us they don’t think they are fully prepared, as it’s rather difficult to predict how things will unfold.
Should you prepare for an exit?
There’s a group of investors that say an “exit” is ludicrous – there’s no way the Fed will pull off an exit.
It turns out we sympathize with that view, but think getting ready for a Fed exit is still paramount. As I wrote in my book Sustainable Wealth, a prudent investor plans for different scenarios. Any scenario that has a non-negligible probability with a potentially profound impact on one’s portfolio should be taken into account. We don’t really have to go much further than this, as all we have to do is look at today’s market: in today’s markets, risk premia are highly compressed. This may sound academic, but what it means is that investors downplay the risk embedded in risky assets. We can see that through investors bidding up junk bonds and buying debt of weaker Eurozone countries. We can also see it in the stock market, where volatility is lower than what has historically been considered normal (i.e. the VIX index is at an unusually low level). In plain English, this means markets may be priced to perfection. And that’s where the problem is: the world isn’t perfect. As such, just the hint of a Fed exit might cause havoc in the market, even if it is never actually pursued. Please read ‘Instability the New Normal’ for an in-depth analysis on how this may unfold.
naturalnews.com / by: J. D. Heyes / Wednesday, August 20, 2014
As consumers of news, readers understand that good journalism is predicated on fairness, balance and presenting all sides of an issue. That said, there most certainly are media outlets that tend to espouse a particular point of view, politically or otherwise, on key issues.
However, when it comes to news agencies that advertise themselves as non-partisan and balanced, readers expect to be presented with all viewpoints of an issue, because without balance, coverage, then, will be skewed.
On that note, Reuters reporter Carey Gillam has covered a number of issues surrounding genetically modified foods for 16 years, according to a report in The Huffington Post by Ken Roseboro, which is not an easy task given increasing polarization regarding GMO crops and foods.
That said, Gillam’s reporting has been balanced and objective, Roseboro writes, and she has given both sides of the issues fair coverage and equal treatment. Civil Eats, an award-winning daily news site that focuses on food issues, recently named Gillam in an article titled, “24 Women Food and Agriculture Reporters You Should Know About.”
No objectivity when it comes to GMOs
In a piece dated April 9, titled, “Bill seeks to block mandatory GMO food labeling by states,” Gillam wrote: “Advocates of labeling say consumers deserve to know if the food they eat contains GMOs, or genetically modified organisms.” A paragraph later, she wrote: “Makers of biotech crops and many large food manufacturers have fought mandatory labeling, arguing that genetically modified crops are not materially different and pose no safety risk.”
zerohedge.com / by Tyler Durden / on 08/20/2014 10:44
For most (practically all) Americans, this is officially the worst recovery ever. As we pointed out previously, wage growth has never been slower in a post World War II recovery. However, not everyone is hurting…
- *GOLDMAN SACHS SAID TO RAISE JUNIOR STAFF’S SALARIES ABOUT 20%
This comes just weeks after Morgan Stanley announced it would raise junior banker salaries by 25%.
Things are troubling…
But not for the bankers… (as Bloomberg reports)
Goldman Sachs Group Inc. will increase 2015 salaries for junior employees in the U.S. by about 20 percent, according to a person briefed on the decision.
21stcenturywire.com / AUGUST 20, 2014
Intellihub published a report yesterday with an official statement from ‘Fast & Furious’ Holder discussing his directives for the visit:
“As I informed the President this afternoon, the full resources of the Department of Justice are being committed to our federal civil rights investigation into the death of Michael Brown.
“During the day today, more than 40 FBI agents continued their canvassing of the neighborhood where Michael Brown was shot. As a result of this investigative work, several new interviews have already been conducted.
“Moreover, at my direction, an additional medical examination is being performed on the body of Michael Brown. This autopsy is being performed today by one of the most experienced medical examiners in the United States military. I am confident this additional autopsy will be thorough and aid in our investigation.
market-ticker.org / by Karl Denninger / 2014-08-20 09:41
I knew I’d get hate mail and lots of vehement push-back when I wrote my column The Truth About Your Consent; it’s a topic I’ve raised privately with people in the past, and the reaction has always been the same — anger, shock and usually a nasty response.
So I think you should go read it again — and not because I’m trying to break my record for hate email (although it’s already close in that regard.)
No, you should read it again because it’s true, and in addition if we are to ever make progress in this country the people of this nation need to understand the principle in that column and accept responsibility for it.
The people in Ferguson need to accept responsibility for their consent to a police department and city government that manages to issue 3 arrest warrants per household per year, and imposes fines that amount to $130 per man, woman, child and infant.
That consent put in place an environment of distrust and hatred between the police department and citizens — and irrespective of whether Mr. Brown was lawfully shot by an officer in the line of duty or was unlawfully killed by him, the reaction that followed was in large part if not exclusively caused by that environment.
The people in Jefferson County, Alabama need to accept responsibility for their consent to a so-called “justice system” that refused to hold to account the banksters that profited from and arranged the swap deals that were entered into in part due to bribery and led to their water bills doubling. How do I know they consented and still do? Do a search for “Chase Bank” locations in and around Birmingham; why is the number (much) greater than zero?
How is it that the Hospitals in California, or those in Arizona, that have bilked people out of $10,000 for a $100 test or $60,000 for two $100 vials of scorpion anti-venom are still open? How about the hospital that charged a guy $9,000 to put a bandage on his finger?
RT, Published on Aug 19, 2014
In this episode of the Keiser Report, Max Keiser and Stacy Herbert ask why, if fracking is so great, is it a state secret? A UK government report looking at the economic consequences in rural Britain is so heavily redacted that none are allowed to know the third “major social impact” the fracking process may cause. They also discuss one energy analyst’s call for fracking as the ‘dotcom bubble’ of our age. In the second half, Max interviews an activist from Germany, Lars Maehrholz, who has seen tens of thousands across Germany attend his weekly Stop the Fed rallies.
naturalnews.com / by Mike Adams / August 20, 2014
In just a few days, Natural News will be exclusively announcing the results of unprecedented laboratory testing of water filters — the kind of testing which has never been done before on off-the-shelf filters.
The tests I’ve conducted in the Natural News Forensic Food Lab determine the ability of water filters to remove not only toxic heavy metals like lead, cadmium, arsenic and mercury, but also to remove uranium, strontium and cesium isotopes — elements of special importance in a nuclear accident (such as Fukushima) or nuclear war.
Shocking test results reveal most water filters don’t work very well
The test results, to be released soon at Natural News, are truly shocking. They reveal that most water filters don’t remove most heavy metals. Most filters failed miserably in this test, leaving the drinking water heavily contaminated with toxic heavy metals (if it was heavily contaminated to begin with, of course).
One very popular water filter sold at Wal-Mart only removed about 15% of the lead in contaminated water, leaving 85% of the lead in the “filtered” water for drinking. (That same filter also failed to remove around 25% of the mercury in the water!)
gotgoldreport.com / by Gene Arensberg / Tuesday, August 19, 2014
HOUSTON – We have been getting some email heckling recently.
Oddly enough from interests apparently sympathetic to Gold and Silver sellers of paper futures on the COMEX bourse in New York City. We won’t repeat their comments in these pages – no sense in giving them any credibility – but it is nice to get some notice from some of them … in a manner of speaking.
We WILL, however, take this opportunity to remind the market and all its global participants just how exposed and potentially vulnerable one particular class of COMEX trader has become recently – to make sure that the entire market is aware of the “score,” so to speak, as a courtesy to our favored readership and potentially, just potentially as a small measure of additional motivation for those short-selling bankers to think about their exposure often and with urgency perhaps.
Incidentally it is our comments about that subject that has apparently invited the ire of the heckler(s).
That particular class of commercial traders calls themselves Swap Dealers when these prop-trading bankers fill out a Form 40-F for the CFTC regulators. They principally and supposedly use COMEX futures to hedge their overall metals or economic exposure.
Once that designation is made on the 40-F, it really does not matter how or what the Swap Dealers used to get to their net book (whether swaps, futures, forwards, other more exotic derivatives, etc.) – once a Swap Dealer always a swap dealer – until the next 40-F is filed for that entity. That’s whether their position is tiny or huge (like now).
Indeed, as of August 12, the Swap Dealers reported a NET short position of 105,311 COMEX contracts (10.5 million ounces, $13.7b worth at $1300). A pretty big exposure for the 18 bank entities reporting as Swap Dealers on the short side, according to the CFTC. That’s the NET exposure.
infowars.com / by PAUL JOSEPH WATSON | AUGUST 20, 2014
Shocking footage out of Ferguson, Missouri shows a police officer pointing his gun directly at protesters and press while remarking, “I’m going to f***ing kill you!”
The scene was witnessed by Infowars reporter Joe Biggs who was also filming the incident. The clip shows a Ferguson officer with his gun raised pointing it directly at a citizen journalist who was live streaming at the time.
“Oh my God, gun raised, gun raised,” states the journalist, before Biggs remarks, “gun pointed.”
“My hands are up bro, my hands are up,” states the journalist before the cop responds, “I’m going to f***ing kill you, get back, get back!”
“You’re going to kill him?” asks another individual before the journalist asks, “did he just threaten to kill me?”
zerohedge.com / by Tyler Durden / on 08/20/2014 10:18
In October 2008, the month after Lehman failed and the Great Recession started, industrial bellwether Caterpillar underwent a series of 19 consecutive, record, declines in Global dealer retail sales declines, finally emerging from its unprecedented funk in May of 2010, just in time to celebrate the start of financial and economic Greece’s collapse which ended with a sovereign default. Well, as of July 2014, that record is no longer valid, because starting with a -1% drop in Global retail sales in December 2012, CAT has now posted a new record of 20 consecutive global delaer retail sales declines, after a -9% Y/Y print for the month of July.
In other words, for Caterpillar, the Great Recovery is now worse than the Great Recession.
thecommonsenseshow.com / by Dave Hodges / August 24, 2014
What happened to the Central American children who supposedly were coming north to the United States on the “Beast” train? It is true that tens of thousands of children, if not more, left their country of origin to make the long and dangerous trek to the United States. However, as my Border Patrol sources have repeatedly emphasized, the number of juvenile illegal immigrants that were detained constituted a very low percentage of the actual detainees in the recent Central American illegal immigrant invasion of the United States.
Since we know that these children left their countries of origin, a reasonable person has to ask “Where did they end up”? In the following video, contains a brilliant and stunning piece of investigative journalism by Jim Stone, as he exposes the fact that the vast majority of the departing Central American children never make it as far as central Mexico. Therefore, one must conclude that these children are being taken off the train and are being used in another criminal enterprise.
marctomarket.com / by Marc Chandler / August 19, 2014
The euro area reported its current and financial accounts for the month of June. Combined they make up the balance of payments.
Traditionally, under the gold standard, the current account would be balanced by capital flows and the transfer of gold claims.
In the modern era, some economists emphasize the basic balance in explaining (and forecasting) currency fluctuations. The basic balance is the current account plus long-term capital flows. The assumption is that short-term capital flows are noisy, influenced by cyclical factors, while long-term capital flows are thought to be the true signal, reflecting underlying productivity.
Yet, it often seems that the long-run is a series of short-run disruptions, and that in any kind of time frame relevant for investors and speculators, cyclical considerations are significant. Moreover, currencies deviate in terms of both direction and magnitude for extended periods. It is there are a number of other balances that currencies ought to bring into equilibrium. It also some times the causation arrow is reversed, and the currency movement causes a change in behavior by various participants.
financialsense.com / BCA RESEARCH / 08/19/201
Our U.S equity team continues to recommend a long financials/short consumer staples equity pair trade.
There are high odds of further gains in coming months as business confidence picks up, and hiring and capital spending gain traction leading to a narrowing output gap.
naturalnews.com / by: J. D. Heyes / Wednesday, August 20, 2014
A Mexican judge in a federal district court in Yucatan state has recently overturned a permit issued to Monsanto, the America-based multinational mega-ag giant corporation that has long been the leading developer and supplier of genetically modified (GM) crops.
Devon G. Pena, writing for Environmental and Food Justice, said that the permit, which was issued by the Mexican Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food on June 6, 2012, “allowed the commercial planting of GM soy bean in Yucatan.”
The recent court reversal was based on consideration of scientific evidence that demonstrated (to the satisfaction of the judge) that GM soy crop plantings are a threat to Mexican honey production in the states of Yucatan, Campeche and Quintana Roo.
As reported by Pena:
An op-ed piece appearing in [a recent issue of] La Jornada (July 23), applauded the decision with insightful commentary suggesting that the federal agencies involved in this dispute are guilty of corruption and collusion with the transnational Gene Giant.
‘The court is agreeing with scientists, farmers’
According to the paper, the permits that were revoked by court order, had been issued by SAGARPA, which is Mexico’s agriculture ministry, as well as SEMARNAT, which is Mexico’s environmental protection agency, despite longstanding objections by the country’s own top environmental institutions — the Mexican National Commission for the Knowledge and Use of Biodiversity, National Commission of Natural Protected Areas, and the National Institute of Ecology.