BOX Should Never Have Been A Public Company (Video)

By EconMatters

 

Box, Inc. is the epitome of the current tech bubble with relatively miniscule real earnings, built mostly on “Hopium”. There is very little chance this company is even a buyout candidate, as Google can just hire any talent it needs to build up this business organically. Box, Inc. will probably be a bankrupt company in three years by my estimation. Just another Technology Company to Wall Street Bull Market IPO Scam if you want to get right down to it. Should have its own American Greed episode on CNBC.

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Caught On Tape: Brazilian Police Fire Tear Gas, Rubber Bullets As Protesters Try To Storm New President’s Office

As expected, the peaceful transition period surrounding the new, and just as corrupt according to many, government of Brazil’s new president Michel Temer did not last even a month. Yesterday, clashes erupted in Brazil with police deploying tear gas and rubber bullets on protesters opposing to the country’s new interim government. Demonstrators hit the streets of Brazil’s largest city, Sao Paolo, for a rally calling for the removal of acting president Michel Temer.

The protesters were angry at the May suspension of President Dilma Rousseff, who now faces an impeachment trial. The move has been dubbed a coup by Rousseff’s supporters, and many claim Temer plotted her downfall to stifle a corruption investigation into Petrobras, Brazil’s state-owned oil enterprise.

Footage from the streets showed police forcing protesters to the ground and officers using batons against demonstrators.

Some activists tried to occupy the building where the leader’s regional office is situated. 

As reported previously, despite holding office for less than a month, Temer’s presidency has been marred with scandal. Transparency minister Fabiano Silveira resigned on Monday, after a leaked tape suggested he tried to derail corruption investigations into Petrobras. Temer’s secretary is also accused of taking bribes.

Eduardo Cunha, the speaker of the lower house of Congress who spearheaded the impeachment campaign, was suspended after being accused of taking millions of dollars in bribes, using a New Zealand trust company to hide the money.

Meanwhile, Temer’s approval ratings are at rock bottom, with only 2% of the Brazilian population indicating they would vote for him if an election was held today. That’s compared to 13 percent for Rousseff, according to research company Datafolha.

Speaking to RT, Brazilian journalist Pepe Escobar said Temer’s presidency has been illegitimate from the beginning. “I have defined the Michel Temer interim government in the first two days, in fact, as a walking dead government. He was already illegitimate from the start,” Escobar said.

“People who follow the internet in Brazil and independent blogs… they know all these scandals in full detail and at the moment everything is paralyzed because of an illegal impeachment coup,” he continued.

Escobar also said that in addition to Temer’s government, the Brazilian people are also upset with the country’s economy. “The Sao Paolo stock exchange is not recovering like it was promised at the beginning of the Temer interim government, so it’s a standstill and it’s going down and down and down because more revelations are in store, because now this is part of an internal political battle in Brazil.”

Meanwhile, Rousseff awaits an impeachment trial in the Senate on charges of administrative misconduct, disregarding the federal budget, and corruption. Speaking RT last month, Rousseff called the impeachment a “coup” organized by the old Brazilian oligarchy. She vowed to fight the “coup” using all available means.

“Our constitution provides for an impeachment, but only if the president commits a crime against the Constitution and human rights,” Rousseff said. “We believe that it’s a coup, because no such crime has been committed. They put me on trial for additional loans [from state banks]. Every president before me has done it, and it has never been a crime. It won’t become a crime now.”

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BOJ Member Warns Japan Economy Is So Fragile, It Could Sink Into Recession Due To “Weather”

One of the reasons why the USDJPY tumbled overnight is because of a set of comments by one of the most hawkish BOJ board members, Takehiro Sato, expressed pessimism about the economy and the central bank’s strategy, saying in a speech Thursday that the BOJ won’t be able to reach its 2% inflation target as forecast and negative rates won’t work to boost investment. “I believe that it is desirable to aim to achieve the price stability target of 2% as a medium-to long-term goal and I expect that the road toward this goal will be long,” Takehiro Sato, one of nine BOJ board members, said in a speech in Kushiro, Hokkaido on Thursday.

This was immediately taken by the market as yet another confirmation that Abenomics will be stretched out, and that the probability for a substantial near-term easing by the BOJ has been notably delayed, leading to the steep drop in the USDJPY observed overnight. To be sure, Sato is a known hawk and dissented on the January decision to adopt a negative-rate policy and also in October 2014, when the BOJ expanded stimulus. That does not make him wrong.

“I believe that the challenge from now on is reforming the policy framework, which is intended to provide solutions in the short term, so as to adapt it to a long-term initiative,” he said Thursday. “The first thing the bank should do for that purpose would be to make the asset purchase operation more flexible.”

As Bloomberg notes, Sato’s concerns about reaching the 2 percent price target as forecast echo those of some investors as Governor Haruhiko Kuroda continues to buy bonds at a record pace and keeps expanding stimulus, yet inflation hovers near zero. Former Deputy Governor Kazumasa Iwata, who served on the board 2003-2008, has predicted that the BOJ will hit the wall in terms of asset purchases by the middle of 2017. “There are growing concerns about the sustainability of the BOJ’s easing,’’ said Daisuke Karakama, chief market economist in Tokyo at Mizuho Bank, a unit of the country’s third-biggest lender. “We can’t see when the BOJ is going to meet the price target and if you take Kuroda’s words at face value, he will have to keep adding stimulus.”

What is more remarkable, was Sato’s admission that instead of easing conditions, the BOJ is in fact tightening them: “I believe that the negative interest rate policy has the effect of monetary tightening, rather than an effect of easing. In addition, the negative interest rate policy could affect financial system stability.” He cited risks from a negative-rate policy adopted in January because it clashes with the expansion of monetary base target.

Perhaps Kuroda should have thought of that back in January.

Sato continues: “I expect that its growth is highly likely to remain sluggish in the future while being susceptible to developments in the global financial markets and overseas economies”

He then bashed QE: “From financial institutions’ recent move to purchase super-long-term bonds in pursuit of tiny positive yield, I detect a vulnerability similar to that seen before the so-called VaR shock in 2003” when Japan’s bond yields surged in the short term, Sato said. The BOJ has to buy about 120 trillion yen of bonds this year as some bonds mature, which is more than 90 percent of newly issued bonds in Japan’s market. The BOJ held 32 percent of government bonds at the end of December, according to the bank.

In other words, as we predicted in late 2014, the BOJ is now monetizing virtually all gross issuance, and is why Japan is scrambling to find an excuse to issue more debt.

But the punchline was the following: “Japan’s economy, with its potential growth rate of nearly 0%, is so fragile as to be liable to post negative growth even because of trivial external factors such as weather conditions.”

But of course we already knew that: recall that the US’ own BEA applied a second seasonal adjustment to last year’s Q1 GDP data to smooth out the “weather impact.” Which, however suggests that the US economy is just as bad as that of Japan, one where the weather alone can push the economy into a recession. At least Japan has not yet figured out that there is a seasonal adjustment for that.

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Trump University Court Documents Make Clear that the GOP is Willingly Supporting a Fraud

Even employees of Trump University say it was a fraud.

Newly unsealed documents from the ongoing class action lawsuit against Donald Trump’s real estate training business reveal that managers working for the company believed it to be “misleading, fraudulent and dishonest” in its operations and its pitch to potential customers.

The testimony from former employees of the company is not only incredibly damning to Donald Trump, the GOP’s presumptive nominee for president, but to his supporters in the Republican party, who are, in effect, furthering Trump’s massive political scam. 

In one of the documents released this week as a result of a court order, Ronald Schnackenberg, a former sales manager for Trump University, described the entire operation as a “fraudulent scheme,” one that “preyed upon the elderly and the uneducated in order to separate them from their money.”

Trump University arrived at the tail end of the mid-00s real estate bubble promising to teach its customers how to successfully make money in the real estate business. The single biggest selling point of the school, which was not a traditionally accredited university, was Trump himself. He not only lent his name to the school, he appeared in its commercials, which promised to “make all of Donald Trump’s secrets available” to those who signed up. “We teach success,” Trump said in an ad for the program. “That’s what it’s all about. It’s going to happen to you.”

It’s not clear that it happened to anyone, except, perhaps Donald Trump. “Virtually all students who purchased a Trump University seminar were dissatisfied with the program they purchased,” Schnackenberg says in his sworn deposition, which was first reported by The New York Times. “To my knowledge, not a single consumer who paid for a Trump University seminar programs went on to successfully invest in real estate based on the techniques that were taught.”

That may have been because, in many cases, the instructors at the school had little or no relevant experience in selling real estate. One mentor and speaker in the program had no real estate experience when he was hired; his background was in selling jewelry. In general, according to Schnackenberg, the program prioritized high-pressure sales experience for its hires. Few if any instructors had significant real-estate experience, and Trump University “misrepresented their experiences and successes to the public.” 

Trump U staffers were pushed to get personal information about the finances of workers under the ruse that they were helping to explain how to finance real estate deals; in reality, the goal was to get a sense of how much they were worth so that Trump University could extract. The job of Trump University employees was not to teach the real estate business, but to sell expensive seminars through deceit.

That meant pushing potential buyers to purchase programs they could not afford. Schnackenberg describes one instance in which he was reprimanded for not making a harder sale on a $35,000 seminar to a couple living on disability. (Another salesman eventually made the sale.)

Trump U students were consistently told to raise their credit card limits in order to borrow money both to invest and to purchase seminars. The goal was to quickly extract as much of their money as possible, and not to provide any value in return. Schnackenberg eventually quit working for Trump University, because he believed it was a fundamentally dishonest scheme. 

Trump was, of course, central to the company’s scheme, in that his name and image as a successful real estate salesman were integral to the pitch. Potential customers were told that the program’s namesake would be closely involved in the seminars. That, however, was “a total lie,” according to Jason Nicholas, another former Trump U employee. Schnackenberg also says he never once saw Donald Trump at Trump University.

I see no inherent problem with salesman making strong cases for their products, or with seminar programs designed to maximize their own profits. But those sales pitches must be essentially truthful. Trump U’s pitch, delivered by Trump, was not. It was a series of misrepresentations and outright lies designed to convince the vulnerable to part with money that in many cases they could not afford to lose, while providing not one iota of value in return.

Donald Trump served as the frontman for this dishonest and predatory scheme. He lent it his name. 

The testimonies of Trump University’s former employees do not reveal Trump’s character so much as confirm what we already knew. 

After all, this is the same presidential candidate who delivered a victory speech on national television in which he claimed that Trump Steaks, which were discontinued shortly after their introduction in 2007, were still a going concern. The same person who put his name on Trump Ocean Resort, a beach condominium project that cost investors some $30 million when it failed to complete.  The same candidate whose businesses have been involved in an unprecedented 3,500 legal actions during the last 30 years, according to a USA Today analysis. 

Trump has repeatedly used his campaign to promote his business interests. He has also recently taken to using his political platform to implicitly threaten the judge who is overseeing the Trump University suit, calling the judge a “hater” and suggesting that some unspecified party should “look into” his actions. 

It has long been clear that Trump is a brazen liar and a practiced scam artist, and that his business and political personas are inseperable. He is continuing his scam as a political candidate.

Tellingly, his campaign’s response to the unsealing of the Trump University legal documents was to release a video featuring happy testimonials about the program. The response merely perpetuates the fraud.  As Leon Wolf notes, none of those people were involved in real estate. None provide any evidence that Trump University made them successful at selling real estate. One has a business relationship with Trump involving protein water; another is a coaching seminar guru; one isI am not making this up—a professional testimonial giver. 

Trump’s response to accusations that he is a fraud is to add a new layer of misdirection. 

None of this is new for Trump. But what is now apparent is how willing much of the Republican party is willing to go along with it. 

The support is not limited to the primary voters who made Trump the nominee. Now that Trump is the presumptive nominee, prominent party actors are lining up to throw their support behind a transparent fraud. Senate leadership has thrown in with Trump. So has the Republican National Committee, and some major party donors

Even some of Trump’s harshest critics are falling in line. Last summer, while running for president, former Texas Gov. Rick Perry called Trump a “cancer on conservatism.” Perry now says he’d be willing to serve as Trump’s running mate.

Florida Senator Marco, during his own failed bid for the GOP presidential nomination, described Trump as an “erratic individual” and a “lunatic” who was “wholly unprepared to be president.” He repeatedly called Trump a “con artist.”

Rubio now says that if it would be helpful to Trump’s presidential campaign, “most certainly be honored” to speak in favor of Trump at the GOP convention.

Rubio’s “con artist” remark suggests he has no illusions about Trump’s character, and that like the former Trump University staffers who believed their employer to be a fraud, he understands that the Trump campaign is at heart a scam.

Yet in contrast to Schnackenberg, who quit after his discovery, Rubio didn’t quit. Quite the opposite. He knew Trump was a con man, and signed on anyway. 

Rubio’s enthusiastic willingness not only to accept Trump, but to endorse him, to speak out in Trump’s favor and to say that it would be an “honor” to do so, suggests that Rubio and the rest of Trump’s backers in the GOP are now willing to lend their own namesand, indeed, the sad and empty husk of the Republican partyto enable Trump’s blatant political con. 

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Thaddeus Russell vs. Michael Moynihan on Blowback: The Fifth Column Returns

Beloved Reason contributor Thaddeus Russell, one of the most interesting thinkers around, and beloved former Reason staffer Michael C. Moynihan, the fastest talker this side of the late Chick Hearn, do not see eye to eye on the conduct and interpretation of U.S. foreign policy. Or don’t they? Find out by listening to the latest episode of The Fifth Column, your favorite podcast of “Analysis, Commentary, Sedition,” featuring Kmele Foster, Moynihan, and me:

Head over to the podcast website for info on how to subscribe; you can also listen using iTunes, Stitcher, and Google Play.

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Mafia Expert Calls Great Britain The “Most Corrupt Place On Earth”

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

The City is a semi-offshore state, a bit like the UK’s crown dependencies and overseas territories, tax havens legitimized by the Privy Council. Britain’s financial secrecy undermines the tax base while providing a conduit into the legal economy for gangsters, kleptocrats and drug barons.

 

Even the more orthodox financial institutions deploy a succession of scandalous practices: pension mis-selling, endowment mortgage fraud, the payment protection insurance con, Libor rigging. A former minister in the last government, Lord Green, ran HSBC while it engaged in money laundering for drug gangs, systematic tax evasion and the provision of services to Saudi and Bangladeshi banks linked to the financing of terrorists. Sometimes the UK looks to me like an ever so civilised mafia state.

 

– From last year’s post: Guardian Op-Ed – The City of London Has Turned Britain Into a “Civilized Mafia State”

This shouldn’t come as any surprise to readers, but it’s a provocative statement nonetheless.

From The Independent:

Britain is the most corrupt country in the world, according to journalist Roberto Saviano, who spent more than a decade exposing the criminal dealings of the Italian Mafia.

 

Mr Saviano, who wrote the best-selling exposés Gomorrah and ZeroZeroZero, made the comments at the Hay Literary Festival. The 36-year-old has been living under police protection since publishing revelations about members of the Camorra, a powerful Neapolitan branch of the mafia, in 2006.

 

He told an audience at Hay-on-Wye: “If I asked you what is the most corrupt place on Earth you might tell me well it’s Afghanistan, maybe Greece, Nigeria, the South of Italy and I will tell you it’s the UK.

 

“It’s not the bureaucracy, it’s not the police, it’s not the politics but what is corrupt is the financial capital. 90 per cent of the owners of capital in London have their headquarters offshore.

For related articles, see:

Introducing the London Kleptocracy Bus Tour

Guardian Op-Ed – The City of London Has Turned Britain Into a “Civilized Mafia State”

London’s Mayor Says We Should “Thank the Super Rich” – Calls Them “Tax Heroes” and Compares to the “Homeless and Irish Travelers”

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How To Be A Smarter Investor

By Chris at http://ift.tt/12YmHT5

Investing, as you might know yourself, is first and foremost a great mental exercise. Hence, perhaps one of the most important pillars of investing success is continuous education (though this likely holds true for any other area as well, not just investing). And it’s no fluke that some of the best investors in the world spend a significant chunk of their day reading and reflecting.

Ray Dalio, the founder of $160 billion hedge fund giant Bridgewater Associates, says the most important things you can do to avoid being wrong in the markets is “to work for yourself, to come up with independent opinions, to stress-test them, to be wary about being overconfident, and to reflect on the consequences of your decisions and constantly improve.” 

This is a principle I’ve tried to instil into the content on this site as well.

I can’t think of any successful investor in my network who doesn’t (often very routinely and on a subconscious level) continuously work on coming up with independent opinions and then shoot holes in them to see where and how they could be wrong.

If I have learned anything in my fifteen years in the markets it’s that “thinking right” matters. It matters a lot. It’s not everything though, as thinking without execution is purely intellectual masturbation – fun but lacking in results.

On the other hand, execution without sufficient thought is arguably worse. Like a train wreck of excited half thought ideas thrown at the wall of execution, they blow up spectacularly. And the better the execution of a bad idea the more leverage is applied to that bad idea. It has been the downfall of individuals, business empires, and entire nations. Consider Marxism as an example of good execution of a terrible idea.

You can imagine that the topic of fine-tuning your brain and seeing through the innate flaws in the way our brain operates is of deep interest to me. And it should be of great interest to you too. We can be our own worst enemy’s sometimes and being vigilant to this is extremely important.

And so I was very excited to chat to Jeff Annello from Farnam Street, a brilliant website I’ve followed for about 6 months now. The focus is a simple but potent one: to master the best of what other people have already figured out.

As always, I recorded the conversation with Jeff for you. Whether you’re seeking to become a better investor, improve your business decisions or simply walk through life as the best version of yourself, then you’re in for a treat. I’m sure you’ll walk away with something that will bring you closer to any of those goals.

Jeff Annello

What are some of the ways to make better decisions that you swear by? Let me know in the comment box here. I’m thinking of doing a follow up article on this and feature your methods in it as I think this would benefit many of us.

– Chris

“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up and boy does that help, particularly when you have a long run ahead of you… so if civilization can progress only with an advanced method of invention, you can progress only when you learn the method of learning. Nothing has served me better in my long life than continuous learning. I went through life constantly practicing (because if you don’t practice it, you lose it) the multi-disciplinary approach and I can’t tell you what that’s done for me. It’s made life more fun, it’s made me more constructive, it’s made me more helpful to others, and it’s made me enormously rich. You name it, that attitude really helps.” – Charlie Munger

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ISM New York Collapses To 7-Year Lows

ISM New York’s purchasing managers survey collapsed in May from 57.00 to 37.2 – the lowest since April 2009. The bloodbath is the biggest monthly drop since May 2007. While ‘hope’ rose rather stunningly from 56.0 to 68.0 – the highest in years, current employment and ‘quantity of purchases’ both plunged to cycle lows.

So much for that April bounce!

Note we have adjusted the chart by centring ISM NY 50 print at 0 which separates expansion from contraction.

Transitory?

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Johnson-Weld are the Adults in the Room

Gary Johnson and the Libertarian party are getting a lot more media attention than they got last presidential cycle, in large part because of the historically high unfavorability ratings held by the presumptive major party nominees, Hillary Clinton and Donald Trump. To boot, the Trump nomination could be the beginning of a broader Republican collapse.

That means I get to go on the teevees to help place Johnson and the Libertarians in the context of the 2016 election. I appeared on RT America this afternoon. Watch me explain why Libertarian candidates Gary Johnson and Bill Weld are the adults in the room, point out the major parties are being taken over by their fringes, call Donald Trump’s eventual running mate a butt monkey, squeeze in Terry McAuliffe’s campaign finance lawbreaking problems, and talk about what I think the greatest hurdle to Libertarian success is (being ignored):

*My apologies to Jeb Bush. I suggested he didn’t break five percent in South Carolina after raising hundreds of millions of dollars. Bush hit almost eight percent in South Carolina, and he and the super PACS supporting him raised more than $150 million.

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Black Lives Matter Organizer DeRay McKesson on Libertarians, Police Unions, Campus Free Speech, and Why He Hasn’t Reached Out to Rand Paul

DeRay McKesson and Reason

DeRay McKesson has been the most prominent face of the Black Lives Matter (BLM) movement since the summer of 2014, when protests over the shooting of 18-year-old Michael Brown by the Ferguson, Missouri Police Department triggered a national conversation about the militarization of police, the lack of transparency or available data pertaining to the use-of-force, and the racial disparity in prosecuting petty crimes and non-violent drug violations.

Though BLM is probably best known for its style of protesting, which includes shutting down political rallies, blocking traffic, and even storming into restaurants during brunch hours, the movement has also done some incredibly valuable reporting in the public interest.

In creating Campaign Zero, BLM activists utilized the Freedom of Information Act (FOIA), requesting use-of-force policies from the U.S.’ 100 largest cities’ police departments. In posting this material on a single easy-to-navigate website, BLM completely streamlined the web of local and federal bureaucracies, which largely exist to keep the public from knowing too much.

McKesson insists he’s not a “leader” of the movement, but rather, a highly active organizer. He’s quick to credit the efforts of his allies, who he says particularly took up a lot of the slack during his recently concluded unsuccessful campaign for the Democratic nomination for mayor of Baltimore. Over the past two years, he’s made innumerable appearances on major media outlets and met with President Obama, Hillary Clinton, Bernie Sanders, and a number of other elected officials, including some Republicans.

Rarely (if ever) seen clad without his blue vest, McKesson, 30, has spent much of his career in public education, as a 6th grade teacher in Brooklyn and a senior director in the Minneapolis public school district. He briefly taught as a guest lecturer at Yale University’s School of Divinity last year, and a few hours after we met up in a midtown Manhattan coffee shop last month, he received an honorary doctorate from The New School.

McKesson and I had a spirited conversation where we discussed the common cause shared by libertarians and BLM when it comes to police accountability and the systemic racism which informs much of the war on drugs, as well as the areas where the the two movements diverge, particularly when it comes to defining and defending freedom of speech.

McKesson says he won’t be endorsing either Democratic nominee for president. But he agreed with a comment Sanders made at April’s Democratic debate in Brooklyn in which the Vermont senator described Hillary Clinton’s 1996 use of the term “superpredators”  — referring to young people she deemed incorrigible when defending the Crime Bill her husband signed as president — as racist.

McKesson says, “I know she tried to distance herself from it, but she said it. She said it in a specific context in a specific climate that it seems certain she is aware of.”

He also says it’s nice that former President Bill Clinton has admitted that the Crime Bill had “dire consequences” which contributed to the crisis of mass incarceration, but that “his acknowledgment doesn’t undo the damage.”

Considering some of the most vocal allies in favor of criminal justice reform and an end to the drug war have been libertarian-leaning Republicans like Sen. Rand Paul (Ky.) and Rep. Justin Amash (Mich.), I wondered if McKesson had reached out to them for a meeting.

Though he credited Paul with being “one of the first candidates” to make an issue of civil asset forfeiture — even before Bernie Sanders made it a pet cause of his — McKesson says he hasn’t reached out to Paul.

“When I taught a course at Yale,” he explained, “all people heard about it was a reading I assigned called ‘In Defense of Looting,’ which people haven’t even read and I think is a really interesting piece. Rand said something like ‘I wouldn’t send my child to a school where they teach that.'”

McKesson says he’d have no problem meeting and working with Paul, who he credited with using his platform to talk about how civil asset forfeiture and the drug war are wrong and disproportionately affect poor people and minorities, adding, “We might not have the same goals, but hopefully we’ll be happy with the same outcomes.” But, McKesson says, once Paul dropped out of the presidential race, “it seemed less urgent to meet with him.”

Citing the fact that he agreed to an interview with Reason, McKesson says he and BLM have “proven that we want to talk to people, we want to work with people.” He says, “some people want to only talk about class and not about race and I think that’s a challenge because class is racism’s center point,” but that “our success will be about how we build coalitions and making people understand that this work impacts them, too.”

In addition to Campaign Zero, BLM launched Check the Police, which also relies on FOIA-procured documents, in this case detailing major cities’ police contracts, which frequently reveal a shocking level of privilege and immunity enjoyed by police officers. McKesson thinks “the media has been slow to report on it, partly because it’s a lot of data.”

He also pushes back on the suggestion that the problem with reforming police unions is analogous to other public sector unions, such as the teachers’ union, who tend to circle the wagons and protect the worst actors in their ranks rather than reform from within.

McKesson argues, “The police in most cities have been almost wholesale unwilling to acknowledge that there’s even a problem.” He adds, “I’ve worked in two public school districts, Minneapolis and Baltimore, one as a senior leader. And while we might not always have agreed with the union and we might have had deep differences, they came to the table. There was some compromise, there was some give-and-take. Neither one of us would get what we want, and we might disagree on what the course of action should be. The police are literally like, ‘there is no problem.’ That is a different.”

In an interview with New York magazine last year, McKesson said that when it comes to the debate over free speech on college campuses, he didn’t believe every idea deserved to be awarded the same merit or right to be heard.

In that interview, Mckesson described “free speech” as “code for this notion that there should be a 50-50 splot for how we discuss topics” and added that he believes “Students are protesting in order to create spaces that promote dialogue and rich conversation. They are protesting to bring the First Amendment to campus in ways that actually speak to and acknowledge the black experience.”

I offered that it’s fair to say that some ideas are dumber than others, and that certainly there’s a difference between shouting racist taunts at people and expressing potentially retrograde viewpoints, but I wondered if he thought the concept of free speech should provide space for people to be wrong or offensive? McKesson replied, “Yeah, but being wrong and being bigoted or racist, those are different things.”

McKesson continues, “It’s important to acknowledge the danger when we provide an academic venue for racism. It’s interesting to hear people push the quote ‘free speech’ narrative in this way. They deny the speech of the people who disagree.”

He adds, “You believe that all speech — not endorsed by the government but even in public settings — should get equal airtime, then that means that protesters do, too. That’s a form of free speech. So, sure, if that’s the world people want to paint. But I don’t believe that’s reality. People actually say you shouldn’t uninvite a speaker. That’s not the same time of free speech that people are proposing. Because if they were, they could be invited and boycotted, right? That would be a form of speech. So, I don’t think people ask that question in an honest way, I think they ask, ‘how can you believe in free speech and believe in protest?'” 

Offering that I am fully in favor of the right to protest, I asked him to consider that protests which include shouting down a speaker are different because they deprive the speaker of his/her right to self-expression. McKesson disagrees.

“It’s still free speech,” he counters. “You’re saying you don’t like the way the free speech of protesters manifests itself. Which I respect, I get your point of view. There’s a way that we can exercise the right to free speech that puts us in a place where we can learn and grow even if that’s uncomfortable. I get that. Which is different from saying you have a commitment to free speech, I don’t think they’re the same thing.”

I brought up President Obama’s recent commencement speeches, where he argued that bad ideas should be exposed, debated, and defeated in the arena of ideas, and that shouting somebody down creates martyrs out of people with bad or wrong ideas, but McKesson was unmoved.

“I would say don’t say you have a commitment to free speech,” McKesson offered. “If you have a commitment to free speech, you would be equally protective of people shouting that person down because that is also free speech. What you’re saying is when that tactic comes up, it’s the wrong tactic. And that makes sense to me, I respect that, that’s fair. I don’t agree with it fully but I get it. But it’s not a commitment to free speech.”

But what happens when the other side gets to invoke safe spaces, I asked, referring to a recent incident at George Washington University where a Palestinian flag was ordered to be removed from a dorm room window because it made some other students uncomfortable. I wanted to know if McKesson could see how this becomes a vicious cycle when anyone can claim offense or that their feelings were hurt, and how giving institutions the authority to police “correct” speech will inevitably lead to his and his allies’ speech being abridged, as well.

McKesson says, “That is really dismissive of people’s real struggle. If City Hall started projecting swastikas, no one would say ‘You know what? Free speech.’ People would say that is wrong.” I countered that I didn’t believe that was analogous to my argument, which was essentially that people should have to deal with their political opponents’ right to express things that make them uncomfortable as long as it’s not directly advocating for violence or harassment.

Unmoved, McKesson says, “I think you get to say that from a place of immense privilege. If someone in walks down the street in a Ku Klux Klan outfit, the way that impacts your life is very different from the way it impacts mine. To you, you’d say ‘that’s fine, he should be able to do whatever he wants.’ I exist in a legacy of people where that outfit means something that’s not about hurt feelings, it’s not about people being upset today. It’s about an entire broken history that for you to dismiss as something that should be able to be in the world is really sad.”

At this point, I felt it necessary to make myself clear that I felt such behavior is wrong, should be shamed, and deemed socially unacceptable. But, I added, if someone walked down the street wearing a swastika, I think that exposes them as a racist and an idiot and hopefully somebody that would be ostracized from society. I just don’t think it should be officially illegal and that’s where he and I diverge. McKesson says he respects my position, but thinks “laws on hate speech and hate crimes do important work in a world that has been rooted in racism and bigotry since the inception of this country, which was not founded on ideals of justice.”

Referring to the presumptive Republican nominee, McKesson says, “It appears that Trump’s platform and his ideas are firmly rooted in hatred and bigotry and that’s unacceptable. It doesn’t seem that he’s fit to lead. But’s Trump’s presence is a reminder that the work of organizing must continue.”

He adds, “no matter who the next president is, we’ve got work to do.”

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