Benghazi Report Reveals Folly of Interventionism

The House Benghazi select committee released its five-part 800-page report on the September 11, 2012 attacks on the U.S. mission in Benghazi, with an “additional views” addendum from Reps. Jim Jordan (R-Ohio) and Mike Pompeo (R-Kan.) that blamed President Obama and Hillary Clinton, who was secretary of state at the time, more directly for the various intelligence, security, and communications failures that led to the attack and misinformation in the aftermath about the existence of protests against a YouTube video that sparked the violence.

Democrats, who accused Republicans of “wasting taxpayers money” on an issue that’s been investigated by the executive branch, and Congress, multiple times, released their own report. Democrats insist the select committee was a political ploy to sully Clinton, the presumptive Democratic nominee, ahead of the November elections. “There seems to be only one remaining question,” White House Press Secretary Josh Earnest said today. “It’s simply this. Is the RNC going to disclose the in-kind contribution they received from House Republicans today?” They’re probably even after the Democrats’ kabuki sit-in against civil rights, off which they raised money directly.

The partisan argument about Clinton’s culpability in an attack that led to the killing of four Americans by Libyan militants misses the broader argument about aimless interventionism. A spokesperson for the State Department responded to the report by saying the department’s “priority continues to be carrying out our national security mission while mitigating the risks to our employees.” Democrats insist the State Department has boosted security, so the problem is solved. Republicans argue the White House didn’t do enough militarily (in one part of the report referring to Obama’s “no boots on the ground” policy as having informed the immediate response to the Benghazi attack), and often believe the answer is more military spending and “boots on the ground.”

The reality is the U.S. should not have participated in the Libyan civil war in the first place, and certainly the Obama administration should not have committed forces before getting approval from Congress. None of the investigative reports I’ve seen tackled that question. The select committee reports that Ambassador Chris Stevens, among the four killed in Benghazi, had been charged with preparing the mission there to be converted to a permanent consulate, so as to offer a “deliverable” for Clinton’s planned October 2012 visit to Libya. Today Clinton insists the fault with the Libyan intervention lies in the Libyan government, for not permitting foreign security to operate in Libya, on the political fallout from the Benghazi attack itself. President Obama has expressed regret at the aftermath of the Libyan intervention multiple times, calling it the “worst mistake” of his presidency. Clinton insists it’s still an opportunity for more U.S. involvement in affairs around the world.

The report also focused on the misinformation surrounding the role of a trailer for a Mohammed movie on YouTube in sparking protests that terrorists may have taken advantage of. There appear to have been no protests in Benghazi prior to the attack and at least one report was based on an article about planned protests that was published a week before the protests happened. Some officials are quoted as being in shock about national security advisor Susan Rice’s infamous Sunday morning appearances about Benghazi. But the administration’s lies were as plain as day to anyone bothering to follow the news during and after Benghazi. The story started unravelling pretty quickly. There was a clear campaign to deflect what happened in Benghazi as a failure of U.S. policy onto a YouTube video and the practice of free speech. There were protests around the Muslim world on September 11, 2012, some focused on the perceived slight to Mohammed, others on U.S interventionism. The ease with which Clinton appears to be able to avoid substantive criticism of unchecked interventionism (“what difference, at this point, does it make?”) is as frustrating as the failure by many to see her as the foe of free speech that she has reliably been as well.

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The Unbearable Triteness of Brexit Commentary

It says something deeply disturbing about contemporary political discourse that Paul Krugman—who regularly ignores those he disagrees with as “knaves and fools” unworthy of his time and attention—was the voice of calm reason over Brexit. “I’m finding myself less horrified by Brexit than one might have expected,” he wrote about the United Kingdom’s decision to leave the European Union. “The economic consequences will be bad, but not, I’d argue, as bad as many are claiming.”

Such shoulder-shrugging was in short supply, especially from those less versed in economics than the Nobel laureate. Indeed, the irredeemably smug insta-responses on both sides of the Brexit issue underscore is that Americans are as quick to virtue-signal as they are to proclaim that they apocalypse is (yet again!) upon us. Throw in a solipsistic inability to see the world as in any way independent of domestic U.S. politics and you’ve got the making of a media shitstorm that left everybody hip-deep in manure but no clearer about what Brexit really means.

Krugman’s even-more-insufferable colleague at The New York Times, Roger Cohen, made Brexit all about himself. “It’s not just the stupidity of the decision,” he fumed. “It’s not even the betrayal of British youth. It’s far more: a personal loss. Europa, however flawed, was the dream of my generation.” In perhaps the most-ridiculous commentary on the surprisingly lopsided “Leave” win, MSNBC host Rachel Maddow delivered a 15-minute history lecture that argued Great Britain’s action would soon give rise to World War III because the only thing standing between a European war of all against all was a political union that dates all the way back to 1993 and a common currency that most members have used since 2002. Given that the clock has not even yet started ticking on Britain’s official exit and that NATO, which binds together a couple dozen European countries plus the United States and Canada, is still going strong, fears of a sixth Battle of Ypres seem, well, a tad exaggerated.

And let’s not pretend that the EU is some vague, toothless entity against which there are no legitimate reasons for resentment. Recently, for instance, the EU’s “commissioner for justice, consumers, and gender equality” issued strict rules for banning “hate speech” on the internet, and has secured the participation of Microsoft, YouTube, Facebook, and Twitter in enforcing disturbingly vague and illiberal rules. Even EU defenders, such as the Times‘ Cohen, grants that it needs serious changes. To categorically assert that 17.5 million Leave voters (against 16 million Remain voters) are simply racist and anti-immigrant is to ignore pro-Leave voices such as libertarian, cosmopolitan Brits such as science writer and House of Lords member Matt Ridley and member of the European Parliament Dan Hannan, both of whom support opening borders to more goods and people. The EU, notes Ridley, “still has no trade deals with America, China, Japan, Brazil, India, Canada, Australia and Indonesia.”

Comedians ranging from Full Frontal‘s Samantha Bee to presumptive Republican presidential nominee Donald Trump showcased another unseemly, widespread element of Brexit “analysis”: It’s really all about domestic U.S. politics, don’t you know? Bee, a former Daily Show reporter who now heads up her own TBS show, attributed the Leave win to “xenophobia” and anger and argued that “Even a brain-damaged baboon couldn’t miss the parallels between the U.S. and Britain.” To be sure, Trump himself was tweeting up a storm drawing such connections. “Just arrived in Scotland,” he tweeted immediately after the vote. “Place is going wild over the vote. They took their country back, just like we will take America back. No games!” (The Donald was also taken to task by commenters who noted that not only did Scotland vote against independence in 2014, a majority last week voted to remain in the EU.) Soon enough, he retweeted comments such as this one: “What has happened in the UK in the last 12 hours is exactly what will happen in November…vote TRUMP 2016.”

Well, maybe.

Whatever legitimate similarities obtain, the differences between the United Kingdom and the United States on issues such as immigration, free trade, and however you want to define xenophobia are greater still. While 77 percent of Brits want to see immigration reduced, for instance, about three-quarters of Americans—and 56 percent of Republicans—think illegal immigrants should be allowed to stay in the country if they meet certain requirements. To the extent that there is anger in the United States at “the establishment,” it’s a trans-partisan sensibility that motivates liberals and conservatives, Democrats and Republicans, and everyone else in the country. How else to explain Bernie Sanders’ unexpectedly strong showing against the fully-anointed-by-party-elders Hillary Clinton? And what does it say that Americans disapprove of both Clinton and Trump in record numbers (but we hate the anti-establishment Trump more)? Or that Clinton and Trump currently hold the same positions on the NAFTA and TPP trade deals? And that party identification levels are at or near historic lows? This all may signal voter anger, frustration, and even desperation, but it’s not simply coming from a single group of voters in the States.

But people such as Bee and Trump are less about getting to the heart of the matter and more about signaling to their respective tribes. One of the biggest misperceptions that Americans have long held is that everything in the wider world is a direct result of American action (or inaction). We wholeheartedly believe that when the United States sneezes, the world catches a cold. This sort of deeply rooted, reflexive solipsism is the main driver of a foreign policy that insists that America is “the indispensable nation” that must be involved everywhere and always. It undergirds an outsize sensibility of U.S. responsibility for every good, bad, and indifferent economic and cultural outcome on the globe. Such thoughts actually pander to the one fear we’re afraid to countenance: That America just might no longer be the beating heart of a global order that is nonetheless getting richer and more free as power decentralizes all over the planet. The only thing worse than being responsible for everything is to not matter as much as we think we should.

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Trump Hits Hillary on Free Trade, Attack on Istanbul Airport Kills Ten: P.M. Links

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Nike Tumbles To August 2015 Levels After Missing On Revenue, Future Orders, Margin Decline

Moments ago one of the hedge fund community’s favorite “can’t miss” consumer discretionary stocks reported Q4 earnings when Nike announced it had earned $0.49 in the quarter, a penny above the $0.48 expected. Revenues missed modestly, printing at $8.24, vs Exp. $8.28.

And yet, despite the bottom line beat, the stock is tumbling after hours: the reason why is becasuse the all-important worldwide orders ex-fx rise 11%, less than the 13% expected, while margin of 45.9%, already a 30 bps drop from a year ago, missed estimates of 46.7%.

The company blamed rising product costs for the margin decline, saying: “Gross margin declined 30 basis points to 45.9 percent as higher average selling prices were more than offset by higher product costs, the negative impact of clearing excess inventory in North America and unfavorable changes in foreign currency exchange rates.”

Some more troubling signs: SG&A:

Selling and administrative expense increased 7 percent to $2.8 billion. Demand creation expense was $873 million, up 7 percent, reflecting investments in digital demand creation, sports marketing and brand events which were partially offset by lower advertising expense. Operating overhead expense increased 7 percent to $1.9 billion, reflecting continued growth in the Direct-to-Consumer (DTC) business, and targeted investments in operational infrastructure and consumer-focused digital capabilities.

Unlike peers, Nike was surprisingly blunt about the flow through to the bottom line:

Net income decreased 2 percent to $846 million as revenue growth was more than offset by lower gross margin, higher selling and administrative expense and a higher tax rate, while diluted earnings per share remained unchanged from the prior year at $0.49 reflecting a 2 percent decline in the weighted average diluted common shares outstanding.

Finally, if one excludes FX changes, Nike’s orders were even weaker. Considering the last quarter saw a far weaker dollar than a year ago, it is not exactly clear how this number is applicable.

This is how orders compare to estimates:

  • North American futures orders ex-FX up 6.0%, est. up 9.0%
  • Western Europe futures orders ex-FX up 11%, est. 15.5%
  • Central & Eastern Europe futures orders ex-FX up 7%, est. +12.0%
  • China futures orders ex-FX up 24%, est. 23%
  • Japan futures orders ex-FX up 15%, est. +12.8%
  • Emerging marketsfutures orders ex-FX up 13%, est. +12.5%

Finally, for those who track it, NKE inventories as of May 31 were up 12%.

The stock was down about 6% on the news, and is now back to levels not seen since the August 2015 crash.

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Why The ECB Thinks Brexit Is Not A “Lehman Moment”

Before we start – here are some facts:

The British Pound suffered an 18-standard-deviation devaluation…

 

With European bank stocks collapsing at the greatest rate ever… ever!!

 

And finally US bank stocks fell by their most since the US downgrade…

 

So – having got that off our chest, to clarify this was not a storm in a teacup – we return to the subject at hand. Despite Mario Draghi going full fear-monger, his colleagues at The ECB are playing down the bloodbathery

The U.K.'s Brexit vote has not triggered a "Lehman moment" in financial markets, despite the sharp sell-off, the vice-president of the European Central Bank (ECB) told CNBC on Tuesday.

 

Vítor Constancio denied comparisons between the U.K.'s vote to leave the European Union (EU) and the 2008 collapse of Lehman Brothers that triggered the global financial crisis.

 

"I think indeed the comparison does not apply because the reaction to Lehman as you may recall was that several markets froze … That was not the case this time," he said.

 

"The second (point) is that the negative effect on prices in markets was more extended in the case of Lehman that indeed triggered a major international crisis," the Portuguese economist and politician later added.

So the reasoning appears to be two-fold:

First – is that funding markets are not spiking like they did before…?

Sterling counterparty risk is surging (but obviously is not at panic levels yet)…

 

And USD liquidity demands are surging (Sterling basis swaps at highest since 2008 crisis) and EUR-USD basis swaps are as worst since EU crisis.

 

And Second – asset price plunges are not extending globally?

Umm – global bank stocks are down 13% in 2 days – worse than Lehman!

 

And EU bank stocks bounce today has been erased!!

 

So the authorities are 'sure' everything will be fine, but the data tends to argue otherwise.

Additionally, while CreditSights believes Brexit "isn't even close" to Lehman, they warn…

While it’s tough to use words “credit contraction” in market “awash” with central bank liquidity, the term’s narrower application to sovereign exposure limits, corporate credit, counterparty lines may be bigger worry ahead, Glenn Reynolds of CreditSights writes in note dated yday.

 

Credit risk limit “exercise” may become more active at banks, asset managers, nonbank intermediaries;

 

may take toll on risky credit assets given market liquidity already impaired by regulatory chang.

So having said all that, we remind readers of Ben Hunt's recent comments that Brexit is a Bear Stearns moment, not a Lehman moment.

That’s not to diminish what’s happening (markets felt like death in March, 2008), but this isn’t the event to make you run for the hills. Why not? Because it doesn’t directly crater the global currency system. It’s not too big of a shock for the central banks to control. It’s not a Humpty Dumpty event, where all the Fed’s horses and all the Fed’s men can’t glue the eggshell back together. But it is an event that forces investors to wake up and prepare their portfolios for the very real systemic risks ahead.

 

There are two market risks associated with Brexit, just as there were two market risks associated with Bear Stearns.

 

In the short term, the risk is a liquidity shock, or what’s more commonly called a Flash Crash. That could happen today, or it could happen next week if some hedge fund or shadow banking counterparty got totally wrong-footed on this trade and — like Bear Stearns — is taken out into the street and shot in the head.

 

In the long term, the risk is an acceleration of a Eurozone break-up, which is indeed a Lehman moment (literally, as banks like Deutsche Bank will become both insolvent and illiquid). There are two paths for this. Either you get a bad election/referendum in France (a 2017 event) or you get a currency float in China (an anytime event). Brexit just increased the likelihood of these Humpty Dumpty events by a non-trivial degree.

What’s next? From a game theory perspective, the EU and ECB need to crush the UK. It’s like the Greek debt negotiations … it was never about Greece, it was always about sending a signal that dissent and departure will not be tolerated to the countries that matter to the survival of the Eurozone (France, Italy, maybe Spain). Now they (and by “they” I mean the status quo politicians throughout the EU, not just Germany) are going to send that same signal to the same countries by hurting the UK any way they can, creating a Narrative that it’s economic death to leave the EU, much less the Eurozone. It’s not spite. It’s purely rational. It’s the smart move.

What’s next? Every central bank in the world will step up their direct market interventions, particularly in the FX market, where it’s easiest for Plunge Protection Teams to get involved. Every central bank in the world will step up their jawboning and “communication policy” to support financial asset prices and squelch volatility. It wouldn’t surprise me a bit if the Fed started talking about a neutral stance, moving away from their avowed tightening bias. As I write this, Fed funds futures are now pricing in a 17% chance of a rate CUT in September. Yow!

What’s the result? I think it works for while, just like it worked in the aftermath of Bear Stearns. By May 2008, credit and equity markets had retraced almost the entire Bear-driven decline. I remember vividly how the Narrative of the day was “systemic risk is off the table.” Yeah, well … we saw how that turned out. Now to be fair, history only rhymes, it doesn’t repeat. Maybe this Bear Stearns event isn’t followed by a Lehman event. But that’s what we should be watching for. That’s what we should be preparing our portfolios for.

Bottom line … if you ever needed a wake-up call that every crystal ball is broken and we are in a political storm of global proportions, today is it. That’s at least 3 mixed metaphors, but you get my point. Brexit isn’t a Humpty Dumpty moment itself, and I think The Powers That Be will kinda sorta tape this egg back together. But if there’s one thing we know about broken eggs and broken teacups and broken partnerships, it’s never the same again, no matter how hard you try to put the pieces back together. My view is that a Humpty Dumpty moment, in the form of a political/currency shock from China or a core Eurozone country, is a matter of when, not if. Tracking that “when”, and thinking about how to invest through it, is what Epsilon Theory is all about.

 

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Brexit Hedge Unwind Sparks Volumeless Dead Cat Brounce

Cheer up Brexit…

 

Somone had to do something… and it appears GBJPY was the momentum igniter du jour to save the world…

 

As hedge-unwinds were misunderstood as a bullish signal… in stocks

 

and FX…

 

Notably VXV/VIX had dropped to its lowest level since August crash – and today's bounce seems like post-event VIX unwinds…

 

Stocks bounced confidently today.. on low volume

 

On the day, we pefectly retraced yesterday's drop…

 

But post-Brexit things remain ugly…

 

As US equities decoupled from Cable…

 

Notably the S&P surged up to the opening levels from yesterdsay and faded… while VIX had fallen 7 handles!!!

 

Financials had their best day in over 3 months.. but are still down over 6% from Brexit

 

Some context, post-Brexit…

 

Treasury yields rose modestly on the day by around 2bps, but the curve remains drastically flatter post-Brexit…

 

The USD Index dropped modestly on the day as GBPJPY dominated the action once again…

 

Commodities were mixed with gold down, silver up, and with crude rising on the brexit bounce and Norwegian strike 'hopes'…

 

Finally, another day, another panic bid at the NYMEX close…

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European Parliament Plans To Remove English As An Official Language

There has been a lot of speculation surrounding what the changes will be in the relationship between the UK and the European Union as a result of the Brexit referendum. One thing we do know, is that according to a senior MEP, English will no longer be an official language of the European Union.

Danuta Hubner, the head of the European Parliament’s Constitutional Afairs Committee (AFCO), warned Monday that English will not be one of the European Union’s official languages after Britain leaves the EU. As Politico reports, English is one of the EU’s 24 official languages because the UK identified it as its own official language, Hubner said. But as soon as Britain completes the process to leave the EU, English could lose its status.

“We have regulation, where every EU country has the right to notify one official language. The Irish have notified Gaelic, and the Maltese have notified Maltese, so you have only the UK notifying English. If we don’t have the UK, we don’t have English.” said Hubner.

As we reported, during a Tuesday speech to EU lawmakers European Commission President Jean-Claude Juncker didn’t speak any English, instead making the speech only in French and German. The games started much earlier than Tuesday however. According to the WSJ,  last Friday and over the weekend, Juncker gave statements and interviews only to German media, a decision that officials said was deliberate. Then on Monday during the commission’s daily media briefing, chief spokesman Margaritis Schinas made his opening statement at  in French only, rather than the usual French and English.

Several members of the European Parliament are worried that Juncker’s decision not to speak English might send the wrong message, not only to British people.

From the WSJ

It’s as provocative as some of the arguments of the Leave campaign. Now we should react with openness and generosity,” said Sorin Moisa, a center-left lawmaker from Romania.

 

It’s like children in the playground,” said Cecilia Wikström, a centrist MEP from Sweden. “Brexit is to me so dramatic, so huge…that we shouldn’t react in this symbolic way.”

 

Ms. Wikström said that keeping English now could actually make communications in the EU a bit fairer, since most of those speaking it would be using a foreign language.

 

“I was always frustrated that native speakers had such a huge advantage,” she said.

* * *

We suspect that these childish games will continue from the elites who are lashing out in any way possible after being defeated.

Might we suggest that Juncker has a glass of wine and relaxes a bit, perhaps a little less slapping however.

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Are CEOs Dumb, Greedy, Or Corrrupt?

Submitted by Jim Quinn via The Burning Platform blog,

Everyone knows the key to investing success – Buy low, sell high. So why do the CEOs of the biggest companies in the world buy back their company’s stock at all-time highs and when prices were at decades lows in 2009, they bought nothing?

These MBA geniuses aren’t dumb in the traditional sense. But their decisions to squander hundreds of billion of shareholder money making horrible investment choices points to their greed and corruption.

Executive compensation is tied to earnings per share.

Since these dimwits are too narrow minded and myopic to figure out ways to increase revenues and profits through capital and intellectual investment, they turn to Wall Street stock buyback schemes to boost EPS artificially, while suppressing wages of their workers and shipping jobs overseas. Boosting their own wealth is all that matters to these greedy bastards.

It’s baked in the cake that these CEO “investments” will result in hundreds of billions in losses.

And not one of these dumbass CEOs will lose their job for doing so. Because all the other dumbass CEOs were doing the same thing. Who coulda knowed?

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The Political Class Knew California High-Speed Rail Was B.S., and Supported it Anyway

Former Reason editor and current Bloomberg View columnist Virginia Postrel has a terrific new column laying out in damning detail the latest revelations in California’s high-speed rail boondoggle. The Los Angeles Times, Postrel notes, published an investigative piece earlier this month showing that (in her paraphrasing), “When the Spanish construction company Ferrovial submitted its winning bid for a 22-mile segment, the proposal included a clear and inconvenient warning: ‘More than likely, the California high speed rail will require large government subsidies for years to come.'” Worse yet—the state scrubbed that we’re-gonna-need-a-bigger-subsidy warning from the project’s website, almost certainly because the California High-Speed Rail Authority is heavily invested in the provable fiction that (in its own shouty words), “HIGH-SPEED RAIL IN CALIFORNIA WILL NOT REQUIRE OPERATING SUBSIDIES.”   

That thievery-level mendacity of the vested pro-rail interests within government, you can be sure, will not be the target of suggested fraud prosecutions in the Democratic Party’s national platform. (Indeed, if they were being even-handed about suggesting law enforcement crackdowns against intentionally misleading forward statements, Democrats would be investigating why their own “five million green jobs” stubbornly failed to materialize.)

But California’s broader political class also has blood on its hands, as this Postrel passage illustrates:

[A] closer look even back [in 2008] would have made it clear that, barring a miracle, the rail project wouldn’t keep its promises. To do so, it would have to be the fastest, most popular bullet train in the world, with many more riders per mile and a much greater percentage of seats occupied than the French and Japanese systems—a highly unlikely prospect. Yet only the most determined wonk would have discovered these comparisons.

Some of those who knew better still succumbed to the glamour of the idea. “There’s something undeniably alluring about a bullet train—the technology is so powerful, the speed so breathtaking, it makes quotidian trips seem exotic,” opined the Times’s editorial board in October 2008. Admitting that “it seems close to a lead-pipe cinch that the California High-Speed Rail Authority will ask for many billions more in the coming decades, and the Legislature will have to scrape up many millions of dollars in operating subsidies,” it nonetheless concluded that “we still think voters should give in to the measure’s gleaming promise.”

The two hyperlinks in that excerpt are, respectively, to my current employer and my former employer. In fact, the L.A. Times editorial in question linked back to the Reason Foundation’s study, and pronounced it “more persuasive” than that of rail project’s backers. Here’s a longer passage:

[P]roponents of Proposition 1a, which would authorize $9.95 billion in bonds for a high-speed rail line connecting Northern and Southern California, think it would be wildly successful. They predict the line could draw 117 million riders a year by 2030, compared with 3 million now taking the high-speed Amtrak train in the densely populated Boston-Washington corridor. And they say it will turn a billion-dollar profit by then even as it keeps ticket prices remarkably low.

The projections by the measure’s opponents, led by the libertarian Reason Foundation in Los Angeles, are much less sanguine and more persuasive.

In other words, screw cost-benefit analysis; we like shiny trains! (And we dislike consumers making the same yucky choices as most members of the L.A. Times editorial board: “Weaning travelers from gas-powered, road-choking cars is critical to the state’s health and competitiveness.”)

Three years later—I kid you not—the L.A. Times reacted to the cost overruns we predicted by editorializing that “Yes, the price tag has tripled and its completion date is 13 years later. But it’s still a gamble worth taking.” One almost hopes they continue finding enough shovels over on Spring Street, for the pure physical challenge of it all.

I think about this mindset every time libertarians are accused of being pie-in-the-sky-dreamers who don’t understand how the real world works, or conversely when the same mainstream outlets who editorialize for nearly every imaginable bond issue then turn around bemoan how state budgets have been cut to the bone.

To paraphrase Vietnam-era John Kerry, who will be the last California taxpayer to bleed for what people knew at the time was going to be a massive waste of money? And when will the people who should have known better own up to their own embarrassing intellectual mistakes? It must suck being beat to the policy punch by Season Two of True Detective.

Reason TV has been all over this sorry story, including this piece from last year:

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Celebrate the History of the Stonewall Riots by Following All These Rules!

StonewallPresident Barack Obama’s administration has just ushered in the first national monument recognizing a significant piece of gay history right as LGBT pride month comes to a close. The Stonewall Inn in New York City and the park and streets surrounding it have been christened Stonewall National Monument. (Check out the speed of government under the right circumstances: It already has a web page with the National Parks Service.)

Stonewall is a famous gay bar and landmark that is widely associated with the angry, frustrated foundations of the modern gay rights movement. Plenty of activism and public protest preceded the police raid on Stonewall in June 1969, but history has a way of wanting to register a tipping point for any social movement. Stonewall’s as good as any, and it certainly set a tone for rebellion against the authority of the government and police (and media!) that presumed to tell gay and transgender people that they were dangerous and perverse, a threat to the social fabric.

And now all Americans of all sexual orientations and identities can visit and celebrate this monument to rebellion, kinship, and just a touch of hedonism.

Oh, also, there’s a bunch of federal rules. The area of the monument includes nearby Christopher Park. Local journalist Matthew Chayes took this snapshot (used with permission) of a sign posted in the park showing all the rules put into place by the National Park Service, similar to those at all national parks:

Park rules

The rules prohibit drinking alcohol, amplified sound (without a permit), and demonstrations (without a permit). The park also closes at dusk. What better to celebrate a protest that took place in front of a bar?

We checked in with National Parks Services to get a little more information. Acting Site Manager Allan Bailey explained that this sign is applicable only to the literal park section, not the entire monument. Stonewall Inn is privately owned and still in operation as a gay bar. The Inn’s drag bingo and strip shows are not in any danger due to the designation as a monument. Bailey also noted that the park was hardly a free-for-all before the feds came around. It was operating under New York City’s very extensive regulations.

Still, given that the Stonewall Riots were a massive, loud rejection of laws that punished certain kinds of disliked behaviors, a memorial that includes a park only open during the day that forbids alcohol and severely restricts protests is an unexpectedly amusing touch.

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