Aug 22

- 30 stats to show to anyone that does not believe the middle class is being destroyed (Economic Collapse, Aug 20, 2014):

The 30 statistics that you are about to read prove beyond a shadow of a doubt that the middle class in America is being systematically destroyed.  Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a staggering pace.  Yes, the stock market has soared to unprecedented heights this year and there are a few isolated areas of the country that are doing rather well for the moment.  But overall, the long-term trends that are eviscerating the middle class just continue to accelerate.  Over the past decade or so, the percentage of Americans that are working has gone way down, the quality of our jobs has plummeted dramatically and the wealth of the typical American household has fallen precipitously.  Meanwhile, we have watched median household income decline for five years in a row, we have watched the rate of homeownership in this country decline for eight years in a row and dependence on the government is at an all-time high.  Being a part of the middle class in the United States at this point can be compared to playing a game of musical chairs.  We can all see chairs being removed from the game, and we are all desperate to continue to have a chair every time the music stops playing.  The next time the music stops, will it be your chair that gets removed? Continue reading »

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Aug 22

- Argentina Peso Collapses At Fastest Pace In 8 Months, Hits Record Low (ZeroHedge, Aug 21, 2014):

Since President Kirchner unleashed her ‘cramdown’ plan for Argentinian debt, the Peso has collapsed at the fastest pace since January’s devaluation. The ‘official’ Peso prices has collapsed 1.3% in the last 2 day to 8.39 per USD – and Argentina’s debt yields have surged (prices tumbled) but the black-market Blue-Dolar price has exploded to an all-time low at 13.8 per USD, implying massive devaluation is coming.

The official Peso rate just hit record lows and is accelerating rapidly…

 

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Aug 17

Washington Post: Europe Is Stuck In a “Greater Depression” (Washington’s Blog, Aug 15, 2014):

“It’s a Little Misleading to JUST Call This a Depression. It’s WORSE than That”

The Washington Post’s Wonkblog reports:

Europe hasn’t recovered, because it hasn’t let itself. Too much fiscal austerity and too little monetary stimulus have, instead, put it more than halfway to a lost decade that’s already worse than the 1930s.

It’s a greater depression. Continue reading »

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Aug 16

George-Soros

- “Soros Put” Rises To Record: Is The Billionaire Investor Betting On Market Crash? (ZeroHedge, Aug 15, 2014):

Back in February we observed, with some surprise, when Soros Fund Management, the investment vehicle of the famous Hungarian billionaire investor revealed in its Q4 13F that the firm had taken its bearish S&P 500 ETF – aka SPY – put exposure to a then record $1.3 billion notional, prompting us and many others to ask if Soros was preparing for a market crash. Fast forward to today when following the latest 13F disclosure from the same fund, we note, with double the surprise that a quarter after the same ETF put was lowered to “only” $299 million notional, Soros has once again increased his total SPY Put to a new record high of $2.2 billion, or nearly double the previous all time high, and a whopping 17% of his total AUM.

Some observations, which we presented previously: the “Soros put” is a legacy hedge position that the 84-year old has been rolling over every quarter since 2010. Since this was an increase of 638% Q/Q this has some people concerned that the author of ‘reflexivity’ and the founder of “open societies” may be anticipating some major market downside.

Furthermore, remember that what was disclosed yesterday is a snapshot of Soros’ holdings as of 45 days ago. What he may or may not have done with his hedge since then is largely unknown, and since there are no investor letters, there is no way of knowing even on a leaked basis how the billionaire has since positioned for the market.

Then again, considering that not only Yellen, who has warned about bubble pockets in stocks, but the BIS, Icahn and numerous other fund managers, now openly warn that the entire market has entered bubble territory, perhaps this is a case where the simplest explanation is also the right one…

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Aug 16

- Is Collapse the Only Real “Fix” to Our Healthcare and Legal Systems? (Of Two Minds, Aug 14, 2014):

If structural reform is impossible as a result of political capture by vested interests, collapse is the only “fix” left.

A few days ago I discussed the overlap of two bankrupt systems: Healthcare (a.k.a. Sickcare) and our legal system–malpractice. Today we hear from two correspondents on possible fixes to malpractice: Ishabaka (M.D.) and Randy, who combines both legal and medical expertise in his family: he is an attorney and his wife is a physician.

First up: Ishabaka (M.D.), a physician who has practiced medicine in both Canada and the U.S. and served an an emergency room doctor for many years. Continue reading »

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Aug 15

bubble burst_0

- 14 Reasons Why The U.S. Economy’s Bubble Of False Prosperity May Be About To Burst (Economic Collapse, Aug 14, 2014):

Did you know that a major event just happened in the financial markets that we have not seen since the financial crisis of 2008?  If you rely on the mainstream media for your news, you probably didn’t even hear about it.  Just prior to the last stock market crash, a massive amount of money was pulled out of junk bonds.  Now it is happening again.  In fact, as you will read about below, the market for high yield bonds just experienced “a 6-sigma event”.  But this is not the only indication that the U.S. economy could be on the verge of very hard times.  Retail sales are extremely disappointing, mortgage applications are at a 14 year low and growing geopolitical storms around the world have investors spooked.  For a long time now, we have been enjoying a period of relative economic stability even though our underlying economic fundamentals continue to get even worse.  Unfortunately, there are now a bunch of signs that this period of relative stability is about to end.

The following are 14 reasons why the U.S. economy’s bubble of false prosperity may be about to burst: Continue reading »

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Aug 15

Reserve Currency Status

- World Reserve Currencies: What Happened During Previous Periods Of Transition? (Economic Reason, Aug 11, 2014):

The decline of the US dollar hegemony is ever so clear today and this article aims to provide the reader with what exactly happened during past periods of reserve currency transitions. Historically, when a reserve currency transitioned over to a new one, it marked a pivotal change for the world. The economic paradigm shifted and the rules of the game changed. This time will be no different when the US dollar loses its status as the reserve currency!

The transition process of the world reserve currency brings much uncertainty

Continue reading »

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Aug 14

- Wages in U.S. down 23 percent since 2008, report shows (Cleveland.com, Aug 12, 2014):

While 8.7 million jobs have been regained since the 2008 recession, they are paying much less, by an average of 23 percent, according to a report released Monday by the United States Conference of Mayors.

The report comes as debate continues about income inequality in the United States. Continue reading »

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Aug 14

H/t reader M.G.:

“A WSJ article about the contracting economy in Japan. It addresses everything but the truth………how can these writer lie so?
How do they keep their jobs? Or, perhaps this is how they do keep their jobs, lie…….”

Yes, they have to lie all of time to keep their jobs. Maybe I should better say that the truth is getting edited out all of the time and those journalists that don’t like it that way and do something about it can look for another job (other than being a journalist, because no other paper will employ them ever again).

This is a fact and has been exposed by many journalists from all around the world.

Were it not for Fukushima, Shinzo Abe would be destroying Japan single-handedly.

Japan is totally finished on so many levels it’s hard to believe.


Shinzo Abe

- Japan’s Economy Contracts Sharply (Wall Street Journal, Aug 12, 2014):

Households Cut Spending After Sales-Tax Increase in April

TOKYO—Japan’s economy contracted sharply in the second quarter after a sales-tax increase in April sent household spending tumbling, which economists said could pressure the government to take additional stimulus measures.

Real gross domestic product, the total value of all goods and services produced in the economy, shrank 6.8% in the three months through June on an annualized basis from the prior quarter. Continue reading »

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Aug 13

FYI.



Streamed live on Aug 10, 2014


Description:

http://www.thenuclearproctologist.org/ The entire 200 kilometers we checked of Canadian Pacific Coast Line was devoid of all life , recovery is highly unlikely . This presentation will be followed tonight with a Q & A session at 8 pm pacific Canada time on this same site beautifulgirlbydana . Watch the live presentation Aug 10th 2014 at 1 pm BC Pacific time in Canada on beautifulgirlbydana
it will show up at this link https://www.youtube.com/user/Beautifu…

Low tide zone info
http://ibis.geog.ubc.ca/biodiversity/…
https://www.crd.bc.ca/education/in-yo…
B,C, parks Over 5000 species PDF file download
http://www.env.gov.bc.ca/bcparks/cons…

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Aug 13

- France’s ‘Recovery’ In 1 Hard-To-Believe Chart (ZeroHedge, Aug 12, 2014):

With French government bonds trading at record low yields under 1.5%, it is hard to argue that the troubled socialist nation is ‘priced’ for either recovery or credit risk… but then again, thanks to Draghi’s promise and domestic banks’ largesse, none of that matters. With joblessness at record highs, the following chart of France’s “recovery” shows near-record high bankruptcies and record-low profitability. Oh the beauty of socialism…as Europe’s core diverges dramatically.

“Recovery”?

20140812_france2

*  *  *

The widening popularity gap between Angela Merkel of Germany and Francois Hollande of France reflects the countries’ diverging economic performances.

Continue reading »

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Aug 13

Ferguson-Riots

- Ferguson Is A Perfect Example Of How Quickly The Streets Of America Can Descend Into Chaos (Economic Collapse, Aug 11, 2014):

Rioting, looting, burning down stores and shooting police officers – is this about to become the “new normal” in America?  What we just witnessed happen in the streets of Ferguson, Missouri is a prime example of how quickly the streets of America can descend into chaos.  There is so much anger and frustration in this country, especially among our young people, that all it takes is a “trigger event” to spark a wildfire.  In this case, it was the shooting of an unarmed black teen by a police officer.  According to the police, 18-year-old Michael Brown got into a physical altercation with an officer and was subsequently shot.  Word spread quickly throughout the community, and protests were rapidly organized.  But the protests didn’t stay peaceful.  People started chanting “kill the police” and throwing rocks and bottles.  Store windows were smashed, the looting began, and people went absolutely crazy.  And it wasn’t just a few people that were doing the looting.  Huge mobs of people looted stores all over Ferguson.  At one point an ATM was even dragged out of a QuikTrip gas station and a while after that the store was set on fire.  But this is what happens when things descend into chaos.  The owners of those stores didn’t have anything to do with the shooting of Michael Brown, but the violence got directed at them anyway.  And someday when we see similar scenes erupt in major cities all over the nation, it won’t matter what your political beliefs are.  You just better not be in the wrong place at the wrong time. Continue reading »

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Aug 12

- Ferguson, St.Louis Violence Continues: Protesters Warn “The Revolution Won’t Be Televised” (ZeroHedge, Aug 11, 2014):

A day of protests and vigils Sunday over the death of Michael Brown, a black teenager who was killed (allegedly shot 8 times) following an altercation with a Ferguson police officer, turned violent overnight with reports of riots and looting… and the violence is continuing today. As the following images suggest, there was a lot more bubbling under the surface of middle America than concern about one young man’s death as Ferguson’s full SWAT team is in force. As one young protester screamed, “the revolution will not be televised.”

 

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Aug 12

ron-paul-weekly

- US Sanctions on Russia May Sink the Dollar (Ron Paul Institute, Aug 10, 2014):

The US government’s decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself. While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar’s eventual demise as the world’s reserve currency. Continue reading »

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Aug 11

From the interview:

Stockman:  Train wreck is a pretty good term to describe what is coming.  But this train wreck isn’t simply going to hit a wall out of the blue. Actually, it has been forming and accumulating and expanding for many years now, and yet it has simply been ignored, particularly by the financial markets which have ridden this bubble to these extreme and historic heights.

But when you take the balance sheet of the Fed from $900 billion to $4.5 trillion in less than 70 months, and when that pattern is replicated around the world, that is a train wreck in slow motion.  The only issue is, when does it hit the wall?  The answer to that question is it’s not very far down the road, and I can promise you that is when all hell is going to break loose.”


- David Stockman Interview On Today’s Turbulent Financial Markets: “Stay Out Of Harm’s Way” (David Stockman’s Contra Corner, Aug 10, 2014):

Eric King:  “David, the man who is counsel to big money around the world, Michael Belkin, just spoke with KWN and issued a dire warning for the financial markets.  I just wondered how you see things at this point with the Dow recently tumbling and everything that is happening across the globe?  What should we expect?” Continue reading »

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Aug 10

- Organized Community Defense Is America’s Last Hope (Alt-Market, Aug 9, 2014):

Not long ago, I felt compelled to address the idea of self defense as a moral imperative in an article titled “Violence In The Face Of Tyranny Is Often Necessary.” My intention was to perhaps undo some of the propaganda conditioning that Americans have suffered over the decades that has taught them that “all” forms of violent action are “immoral”, including the defense of one’s person, one’s property, and one’s freedom.

The recent uprising at Bundy Ranch in Bunkerville, Nev., confirmed my predictions that many Americans are tired of playing by rules chartered by the establishment and are ready to take measures outside of the boundaries set by the system. The reality is that change will never come without consequence and cost, and when faced with an entrenched tyranny, if the citizenry cannot present the threat of physical consequence to their oppressors, the oppressors have no motivation to relinquish power. Continue reading »

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Aug 07

- Must Read: Fear And Loathing On The Marketing Trail  (ZeroHedge, Aug 5, 2014)

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Aug 07

Shinzo Abe

- Abenomics Is Working: Japanese Households On Welfare Rise To Record (ZeroHedge, Aug 6, 2014):

Just in case the legacy of Abenomics wasn’t clear enough (it should have been after we reported that its legacy is “Japan’s Greatest “Misery” In 33 Years“), here is another confirmation that in the New Normal, only bad things happen when you forget to BTFD.

From Japan Times:

The number of households on welfare in Japan hit a record high of 1,603,093 in May, up 2,852 from the previous month, the Health, Labor and Welfare Ministry said on Wednesday. The rise came as a growing number of single-person elderly households, or people aged 65 or older who are living alone, became recipients, ministry officials said. Continue reading »

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Aug 06

From the article:

“This also means that any boasts by Obama about “solid US economic growth” under his regime, and that all those jobs lost since Lehman have allegedly since been recovered, are nothing but even more lies.”


obama1

- 4 Million Fewer Jobs: How The BLS Massively Overestimated US Job Creation (ZeroHedge, Aug 5, 2014):

When it comes to the all-important monthly payrolls number which sets the tone for risk over the next month, one of the biggest variables in the BLS’ “estimate” (because all jobs numbers are that: statistical estimates) of US jobs is the monthly birth-death adjustment. What this monthly fudge factor is, in a nutshell, is the BLS’ estimation for how many new businesses are created over the period offset by older “dying” businesses, leading to incremental jobs that are only polled by the BLS with a substantial lag.

Here is how the BLS explains this adjustment: Continue reading »

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Aug 06

- How Economies Collapse: Systemic Friction and Debt Are Self-Liquidating (OfTwoMinds, Aug 4, 2014):

Paying for unproductive friction with borrowed money has generated the illusion that free to me is actually free–it isn’t.

We will discover, to our detriment, that friction and debt are both self-liquidating:that is, they bring about their own liquidation via systemic collapse.

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Aug 05


Published on Aug 3, 2014

Full description and discussion at: http://www.peakprosperity.com/podcast…

David Stockman, former director of the OMB under President Reagan, former US Representative, best-selling author of The Great Deformation, and veteran financier is an insider’s insider. Few people understand the ways in which Washington DC, The Fed, and Wall Street work and intersect better than he does.

He’s extremely concerned by the “perfect storm” he sees of concurrent failures in US policy across foreign, monetary, economic, and fiscal fronts.

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Aug 05

us-dollar-black-hole

- US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth & The Gap is Growing. We Now Await the Nature of the Cramdown. (Biderman’s Money, Aug 4, 2014):

There are many ways to look at the United States government debt, obligations, and assets.  Liabilities include Treasury debt held by the public or more broadly total Treasury debt outstanding.  There’s unfunded liabilities like Medicare and Social Security.  And then the assets of all the real estate, all the equities, all the bonds, all the deposits…all at today’s valuations.  But let’s cut straight to the bottom line and add it all up…$89.5 trillion in liabilities and $82 trillion in assets.  There.  It’s not a secret anymore…and although these are all government numbers, for some strange reason the government never adds them all together or explains them…but we will.

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Aug 04

- Portugal’s Insolvent Banco Espirito Santo To Be Bailed Out, Existing Equity To Be Wiped Out (ZeroHedge, Aug, 3, 2014):

  • Portugal may use the Resolution Fund to recapitalize Banco Espirito Santo, Diario Economico reports, citing unidentified people linked to the process.
  • Resolution Fund may inject more than €3 billion
  • A “bad bank” may be created for the toxic assets of the credit portfolio
  • Solution aims to rescue Banco Espirito Santo without spending taxpayers’ money, and is being prepared by the government and the Bank of Portugal
  • From Aug. 4, Banco Espirito Santo will leave the stock market and will be 100% owned by the Resolution Fund, an entity created in 2012 and financed by Portuguese banks and by revenue from the special contribution that the banking sector pays the Portuguese state

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Jul 31

Related info:

- Clintonians Join Vulture Flock Over Argentina

- Argentina: 1 Week Left Until ‘D’efault-Day (ZeroHedge, July 22, 2014)


- Argentina Defaults (ZeroHedge, July 30, 2014):

It’s all over but the crying: having explained Argentina’s position (i.e. not giving to so-called vulture funds), Economy Minister Kicilloff explains:

  • *KICILLOF SAYS HEDGE FUNDS NOT WILLING TO GIVE DELAY ON RULING
  • *KICILLOF SAYS HARD TO BELIEVE ARGENTINA IN DEFAULT IF HAS FUNDS
  • *KICILLOF SAYS ARGENTINA CAN’T COMPLY WITH COURT RULING
  • *HOLDOUTS DIDN’T ACCEPT ARGENTINE OFFER: KICILLOF

As Bloomberg notes, by defaulting today, Argentina may trigger bondholder claims of as much as $29 billion — equal to all its foreign-currency reserves. Just remember that the last 2 days have seen ‘smart money’ buy Argentine bonds and stocks to all-time record highs. Continue reading »

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Jul 31

change-obama

- 21 Ways To End The Phrase ‘Americans Are So Broke…’ (Economic Collapse, July 29, 2014):

Did you know that 77 million Americans have unpaid debts that are “in collections” and that Congress is actually thinking about letting post offices offer payday loans?  We live in a country where almost everyone is drowning in debt and where most people are either flat broke or very close to flat broke.  Years ago, “your Mama is so broke” jokes were all the rage, and at the rate we are going they could make a big comeback.  Some of my favorites were “your Mama is so broke she went to McDonald’s and put a milkshake on layaway” and “your Mama is so broke your family ate cereal with a fork to save milk”.  Unfortunately, the facts that I am about to share with you are not funny at all.  In fact, they are quite sobering.  Yes, things are going fairly well for the elitists that live in the good areas of New York City, Washington D.C. and San Francisco right now, but most of the country is deeply struggling as our economic fundamentals continue to crumble.  Please share these numbers with as many people as you can, because we need people to understand that there has not been an “economic recovery” for most of America.  In fact, in many ways things just continue to get even worse.

The following are 21 ways to end the phrase “Americans are so broke”: Continue reading »

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Jul 30

- Ron Paul: Stocks are in a bubble and will crash (CNBC, July 29, 2014):

Ron Paul, the former U.S. representative from Texas and perhaps America’s most popular libertarian voice, has long said that the nation’s monetary and fiscal policies would result in massive inflation. According to the common measures of inflation, this has not yet occurred. But Paul maintains that the inflation he has warned of has indeed come to fruition in asset prices, and that once it unravels, a market crash will ensue. Continue reading »

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Jul 30

Banco Espirito Santo Plunges: Shareholder Meeting Cancelled Due To “Unexpected Facts” (ZeroHedge, July 29, 2014):

With all other operating holdcos having already declared bankruptcy, the anxiety over Banco Espirito Santo is growing (despite DE Shaw and Goldman Sachs recommending investors buy the shares). Despite Bank of Portugal reassurance last night that “BES is able to raise capital), the stock is plunging on news of “unexpected facts” this morning…

  • *BANCO ESPIRITO SANTO SAYS SHAREHOLDER MEETING WAS CANCELLED DUE TO “UNEXPECTED FACTS”
  • *BANCO ESPIRITO SANTO FALLS MORE THAN 13% IN LISBON TRADING

Remember, this is systemic (as the Portugues President has warned), and the contagion is potentially global… not “contained.” Continue reading »

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Jul 29

- Deadbeat Nation: A Shocking 77 Million Americans Face Debt Collectors (ZeroHedge, July 29, 2014):

We have been warning for years that as a result of the Fed’s disastrous policies, America’s middle class is being disintegrated and US adults are surviving only thanks to insurmountable debtloads. But not even we had an appreciation of how serious the problem truly was. We now know, and it is a shocker: according to new research by the Urban Institute, about 77 million Americans have a debt in collections.

As the Washington Post reports, that amounts to 35 percent of consumers with credit files or data reported to a major credit bureau, according to the study released Tuesday by the Urban Institute and Encore Capital Group’s Consumer Credit Research Institute. “It’s a stunning number,” said Caroline Ratcliffe, senior fellow at the Urban Institute and author of the report. “And it threads through nearly all communities.”

 

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Jul 28

NWO

- 85 Super Wealthy People Have More Money Than The Poorest 3.5 Billion Combined (Economic Collapse, July 27, 2014):

The global economy is structured to systematically funnel wealth to the very top of the pyramid, and this centralization of global wealth is accelerating with each passing year.  According to the United Nations, 85 super wealthy people have more money than the poorest 3.5 billion people on the planet combined.  And 1.2 billion of those poor people live on less than $1.25 a day.  There is something deeply, deeply broken about a system that produces these kinds of results.  Seven out of every ten people on the planet live in countries where the gap between the wealthy and the poor has increased in the last 30 years.  Despite our technological advances, somewhere around a billion people go to bed hungry every single night.  And when our fundamentally flawed financial system finally does collapse, it will be the poor that will suffer the worst. Continue reading »

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Jul 28

- Over 50 dead in Tripoli airport battle as foreigners leave collapsing Libya (RT, July 27, 2014):

Over 50 Libyan fighters died in exchanges over Tripoli’s airport during the weekend in one of the worst outbreaks of violence since Gaddafi’s ouster. With state authority on the verge of collapse, France and Britain have ordered citizens to evacuate.

One hundred people have died in the battle for the airport, with 400 others believed to be wounded, the country’s health ministry announced. Continue reading »

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