“Pay-to-Play” Cop Who Mistook His Gun for a Taser Sentenced to Four Years For Fatal Shooting

Robert Bates, Pay-to Play Cop

Robert Bates, the 74-year-old insurance executive who reportedly donated thousands of dollars to win himself the privilege of being a “volunteer” sheriff’s deputy in Tulsa, Oklahoma, was sentenced to four years in prison yesterday for the fatal shooting of 44-year-old black man Eric Harris in 2015. 

Harris was the target of a sting operation where officers hoped to catch him in the act of making an illegal gun sale. When Harris took off running, officers gave chase. Once they caught up with Harris, he was brought to the ground and Bates reached for what he thought was his taser, but was instead his department-issued firearm and shot Harris. 

Bates immediately said, “I’m sorry,” while Harris screamed in agony that he was losing his breath. Another officer told Harris “fuck your breath,” and blamed the dying man for his predicament because he ran from them. All of this was caught on the body camera worn by one of the officers. 

Despite pleas for leniency, the judge upheld the all-white jury’s recommendation that Bates be sentenced to the maximum four years allowed for a second-degree manslaughter conviction. Tulsa’s News 9 showed video of one woman angrily leaving the courthouse saying, “Yeah, the criminal won. Good ole Eric Harris.”

Bates’ attorneys called the killing “excusable homicide” and blamed Harris’ death on his questionable health and the fact that methamphetamine was found in his system, rather than the bullet Bates put into Harris’ body. 

Reason‘s Ed Krayewski wrote in April at the time of Bates’ conviction that “Prosecutors also argued Bates showed a lack of ‘reasonable’ care by volunteering for the sting the night before. Other deputies testified they saw Bates sleeping in his car before the operation against Harris, who the deputies testified they told Bates was dangerous and likely armed.”

NBC News reports that Harris’ death led to a full accounting of the many bureaucratic missteps which allowed an elderly private citizen to be in an official police situation with the authority to use deadly force:

Following the shooting, an outside consultant hired to review the sheriff’s office determined that the agency suffered from a “system-wide failure of leadership and supervision” and had been in a “perceptible decline” for more than a decade. The reserve deputy program was later suspended.

Weeks after Harris was killed, an internal sheriff’s office memo from 2009 was released by an attorney for Harris’ family that alleged superiors knew Bates didn’t have enough training but pressured others to look the other way because of his relationship with the sheriff and the agency.

You can watch the body camera footage of Eric Harris’ shooting below (Warning: Disturbing content): 

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The Golden Constant, Not OPEC, Rules

Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke.


OPEC will hold its semi-annual meeting tomorrow. All eyes will be on Vienna. But, when it comes to oil prices, the “golden constant”, not OPEC, rules the roost.

So, just where is the price of oil going from here? To answer that question, we have to have a model – a way of thinking about the problem. In this case, a starting point is Roy W. Jastram’s classic study, The Golden Constant: The English and American Experience 1560-2007. In that work, Jastram finds that gold maintains its purchasing power over long periods of time, with the prices of other commodities adapting to the price of gold. 

Taking the broad lead from Jastram, my colleague, David Ranson, produced a study in April 2015 in which he used the price of gold as a long-term benchmark for the price of oil. The idea being that, if the price of oil changes dramatically, the oil-gold price ratio will change and move away from its long-term value. Forces will then be set in motion to move supply and demand so that the price of oil changes and the long-term oil-gold price ratio is reestablished. This is nothing more than a reversion to the mean.

We begin our analysis of the current situation by calculating the oil-gold price ratios for each month. For example, as of May 24th, oil was trading at $49.24/bbl and gold was at $1231.10/oz. So, the oil-gold price ratio was 0.040. In June 2014, oil was at $107.26/bbl and gold was at $1314.82/oz, yielding an oil-gold price ratio of 0.082. The ratios for two separate periods are represented in the accompanying histogram – one starting in 1946 and another in 1973 (the post-Bretton Woods period).

 

Two things stand out in the histogram: the recent oil price collapse was extreme – the February 2016 oil-gold price ratio is way to the left of the distribution, with less than one percent of the distribution to its left. The second observation is that the ratio is slowly reverting to the mean, with a May 2016 ratio approaching 0.04.

But, how long will it take for the ratio to mean revert? My calculations (based on post-1973 data) are that a 50 percent reversion of the ratio will occur in 13.7 months. This translates into a price per barrel of WTI of $60 by March 2017. It is worth nothing that, like Jastram, I find that oil prices have reverted to the long-run price of gold, rather than the price of gold reverting to that of oil. So, the oil-gold price ratio reverts to its mean via changes in the price of oil.

The accompanying chart shows the price projection based on the oil-gold price ratio model. It also shows the historical course of prices. They are doing just what the golden constant predicts: oil prices are moving up.

 

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Construction Spending Collapses – Worst April Since 2009

Following a hope-strewn bounce in February and March, US Construction Spending plunged 1.8% in April (massively worse than the expected 0.6% rise). This is the biggest monthly drop since January 2011 as while religious construction surged 9.6%, Commercial, Healthcare, and Education construction all plunged with Communications and highway building collapsing 7.7% and 6.5% respectively. We ares ure wether will be blamed but the 1.5% drop in residential construction is rather notable for an April – it is the weakest April since 2009.

 

 

Transitory?

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Hillary’s Habits of Haughtiness: New at Reason

The last time she lived in the White House, Hillary Clinton was in charge of a health care task force that met in secret under a veil of lies. That episode, writes Jacob Sullum, highlighted the haughtiness, deceit, and disdain for transparency that continue to cause trouble for the presumptive Democratic presidential nominee, as illustrated by the recent inspector general’s report on her email practices as secretary of state. 

Two decades later, Clinton’s old habits of entitlement and obfuscation are coming to the fore again. “Voters just don’t trust her,” The New York Times notes, citing a recent survey in which 64 percent of respondents said Clinton is not “honest and trustworthy.” Her response to the email controversy shows why.

View this article.

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US Manufacturing Weakest Since 2009: “No Comfort For Those Looking For A Rebound”

Following China's drop, Japan's plunge, and Brazil's crash, US Manufacturing PMI slipped once again to 50.7 – its weakest since September 2009 amid " subdued client demand and heightened economic uncertainty." New orders bounce is over as it fell to its weakest since Dec 2015 and worse still input costs are surging to 9 month highs as employment suggest payrolls will remain under pressure. ISM Manufacturing data improved marginally – leaving 50% of the last 10 months in contraction and 50% in expansion. The improvement seesm based on a rise in prices paid and customer inventories – hardly a positive sustainable trend. As Markit concludes, "for those looking for a rebound in the economy after the lacklustre start to the year, the deteriorating trend in manufacturing is not going to provide any comfort.”

ISM and PMI Manufacturing  indices had recoupled in the last 2 months after ISM's big plunge.

 

ISM Breakdown:

  • PMI rose to 51.3 vs 50.8 last month
  • New orders fell to 55.7 vs 55.8
  • Employment unchanged at 49.2 vs 49.2
  • Supplier deliveries rose to 54.1 vs 49.1
  • Inventories fell to 45.0 vs 45.5
  • Customer inventories rose to 50.0 vs 46.0
  • Prices paid rose to 63.5 vs 59.0
  • Backlog of orders fell to 47.0 vs 50.5
  • New export orders unchanged at 52.5 vs 52.5
  • Imports unchanged at 50.0 vs 50.0

Notably, the subcomponents of output and employment have been falling since QE3 ended…

As Markit concludes,

“The survey data indicate that factory output fell in May at its fastest rate since 2009, suggesting that manufacturing is acting as a severe drag on the  economy in the second quarter.

 

Payroll numbers are under pressure as factories worry about slower order book growth, in part linked to falling export demand but also as a result of growing uncertainty surrounding the presidential election.

 

“For those looking for a rebound in the economy after the lacklustre start to the year, the deteriorating trend in manufacturing is not going to provide any comfort.”

Perfect time to be raising rates then?

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The Federal Reserve Has Created An Unprecedented Disaster For Pension Funds

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

When it comes to the Fed, Congress is mired in hypocrisy. The anti-regulation, de-regulation crowd on Capitol Hill shuts its mouth when it comes to the most powerful regulators of all – you and the Federal Reserve. Meanwhile, Congress goes along with the out-of-control, private government of the Fed—unaccountable to the national legislature. Moreover, your massive monetary injections scarcely led to any jobs on the ground, other than stock and bond processors.

 

– From the post: Ralph Nader Destroys the Federal Reserve in Open Letter – Calls it “Out of Control, Private Government”

If I had to choose one single institution and one single individual most responsible for the weak, putrid and unbelievably corrupt oligarch-controlled U.S. economy, I would choose the Federal Reserve and Ben Bernanke.

The central planners at the Fed have systematically funneled trillions of dollars into the pockets of those who least needed and deserved it least, and in the process served to further enrich and entrench a criminal oligarchy while pounding the middle class into oblivion. What’s worse, the financial armageddon faced thus far by the 99.99% is just getting started.

Thanks to the 0% rate targeted by the Federal Reserve, pensions simply can’t get a decent return without moving further and further out on the asset management risk spectrum, and even then, it’s still not sufficient.

Today’s Wall Street Journal article on the topic shines a much needed light on just how dangerous this whole charade has become. Here are a few excerpts:

What it means to be a successful investor in 2016 can be summed up in four words: bigger gambles, lower returns.

 

Thanks to rock-bottom interest rates in the U.S., negative rates in other parts of the world, and lackluster growth, investors are becoming increasingly creative—and embracing increasing risk—to bolster their performances.

 

To even come close these days to what is considered a reasonably strong return of 7.5%, pension funds and other large endowments are reaching ever further into riskier investments: adding big dollops of global stocks, real estate and private-equity investments to the once-standard investment of high-grade bonds. Two decades ago, it was possible to make that kind of return just by buying and holding investment-grade bonds, according to new research.

Thank you, Ben Bernanke.

The amplified bets carry potential pitfalls and heftier management fees. Global stocks and private equity represent among the riskiest bets investors can make today, Mr. Kloepfer said.

Not to mention what often amounts to investing in criminal schemes. Recall: SEC Official Claims Over 50% of Private Equity Audits Reveal Criminal Behavior.

Bonds historically produced a source of safe, good-enough streams of profit that allowed long-term, risk-averse investors to hit annual targets. The era of low rates has all but erased that buffer. The absence of a few extra percentage points of yield means investors must now compensate by embracing unsafe bets that could strike big—or flop. The Callan report highlights how risky an endeavor that is.

 

Many large investors aren’t gambling that big—and their returns are lagging well behind internal targets. The nation’s largest public pension fund, the California Public Employees’ Retirement System, has one-fifth of its assets in bonds and is down 1.3% since July 1, according to public documents. The system, known by its abbreviation Calpers, also has 53.1% of its assets in stocks, 9% in real estate and 9.4% in private equity. In 2015, Calpers posted a return of 2.4%, below its target rate of 7.5%.

As you can see, they still aren’t getting a decent return despite moving outward on the risk spectrum. On the bright side, at least hedge managers and private equity partners are making a fortune from the exorbitant fees they charge pension funds for poor performance. For example, see:

Additional Details Emerge on How Hedge Funds and Private Equity Firms Loot Public Pensions

“Let Them Sell Their Summer Homes” – NYC’s Largest Public Pension to Ditch Hedge Funds

Pensions and Private Equity – A Letter to the New York Times Editor

The risk dilemma for investors has real-life consequences. Retirement plans, including Calpers and the New York State Common Retirement Fund, are lowering what they predict they can earn on their investments, a move that means workers and cities likely face higher contributions and taxes.

 

For insurers, lower bond returns mean life-insurance policyholders pay more for coverage.

Guess who ultimately gets shafted because of all this? Yep, you guessed it. The average American citizen.

Cheaper borrowing costs generally spur new investments from companies or consumers. But instead, global production is flat or declining, and consumers face stagnant wages that crimp their ability to spend.

Mission accomplished. Thanks for playin’ suckers:

Screen Shot 2016-05-31 at 4.15.26 PM

For more on the Creature from Jekyll Island, see:

Ralph Nader Destroys the Federal Reserve in Open Letter – Calls it “Out of Control, Private Government”

A Brief History on How the Federal Reserve Became the Undemocratic, Corrupt and Destructive Force it is Today

The Federal Reserve Refuses to Provide Names Requested by Congress in Probe

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Oil Tumbles To $47 Handle After China PMI, Stocks Erase Yesterday’s Dead-Cat-Bounce

Yesterday’s panic-buying stocks into the close to ensure The Dow closed May in the green has now been entirely erased as Oil plunges to a $47 handle…

This is oil’s biggest drop in 3 weeks…

 

Crude is tumbling despite notable weakness in the US Dollar…

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Stunning Satellite Images Of The Global Tanker “Traffic Jams”

One week ago, we showed the latest MarineTraffic update of the unprecedented congestion of crude oil tankers located off the coast of Singapore, together with an extended analysis of what is causing this and what are the implications.

 

 

Today, we’ll spare readers the ongoing analysis – which hasn’t changed – and instead present the following dramatic satellite images just released from Reuters, showing “huge traffic jams of tankers which have formed around the world with some 200 million barrels of oil either waiting to be loaded or delivered as ports struggle to cope with record volumes in perhaps the most visible sign of the global oil glut.”

Almost all of the over 660 Very Large Crude Carriers (VLCCs), the largest tankers in use to transport seaborne oil, are used to ship crude between the Middle East and Asia’s consumption hubs around India and the Far East. The map above shows all of these super tankers in operation on April 11.

Waiting in line: Each orange symbol below represents a parked large crude tanker. Ships in transit are not shown.

The exporters

Importers


SINGAPORE AND SOUTHERN MALAYSIA

Almost all tankers going to the Far East pass through Singapore, the world’s petrol station for tankers (bunker fuels) and also a global refinery and ship maintenance hub. In a reminder that the oil glut is still far from over, there are now dozens of large tankers full of unsold crude anchored offshore. New vessels are even hired as floating storage as excess supply needs storage and facilities operate at or near capacity.

A broader view of congestion.

Here’s another look at Singapore. This time showing moving and stationary vessels of all types. Tankers here have to jostle for space in congested waters around the port

 

How busy can it get?
To see just how congested some shipping lanes can become, look no further than the world’s busiest port, Shanghai. Hundreds of bulk carriers form highways up and down the Yangtze River to dock at various locations.

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Hillary’s Other $225,000 Speech – Paid By Law Firm Suing Trump University

Authored by Rachel Stockman via LawNewz.com,

Donald Trump has undoubtedly made the class action lawsuit against Trump University a campaign issue. For the last several days, he has been on a tear against federal Judge Gonzolo Curiel who is overseeing one of the class action lawsuits against Trump University. In the lawsuit, former students claim that the University and Trump violated federal law by luring them to sign up with false promises and then defrauded them once they handed over their checks.

LawNewz.com discovered that when it comes to politics, Robbins Geller Rudman & Dowd, the law firm behind the class action lawsuit, is not exactly neutral either. Our analysis, using data first compiled by The Washington Post, found that Robbins Geller Rudman & Dowd paid the Clintons a total of $675,000 in fees for speeches since 2009. Hillary Clinton gave a $225,000 speech at the law firm as recently as September 4, 2014.  Bill Clinton also gave a speech for the same fee back in 2013, and another one in 2009 before the firm had been renamed (they used to be called Coughlin Stoia Geller Rudman & Robbins LLP). In fact, of the five law firms that paid for the Clintons to speak over the last few years, Robbins Geller Rudman & Dowd paid out the most money.

Court records indicate 9 attorneys from Robbins Geller are listed as representing Art Cohen and the other former Trump University students in the class action lawsuit (there are three attorneys from another law firm as well). A review of the case’s docket reveals that the Robbins Geller attorneys have aggressively pursued the lawsuit, pushed for Trump to testify and for the trial to begin before the November 2016 election. However, it is also worth noting that the lawsuit was filed in 2013, well before Trump declared he was running for President.

“These are real people who spent a significant amount of money. This has impacted their lives. That does not turn on the election or the election outcome,” Robbins Geller lawyer Jason Forge said about the case. A judge ultimately decided that the trial should begin sometime after the election.

In addition, in the midst of the litigation, one of the Robbins Geller attorneys, Patrick Coughlin, who is also ‘of counsel’ at the law firm, maxed out his donations to Hillary Clinton’s campaign. Records maintained by the Federal Election Commission indicate that Coughlin has been a longtime financial supporter of both the Democratic National Committee and Hillary Clinton. In February, he donated $5,400 to her campaign.

No rule prevents a lawyer from donating to a candidate or paying a prospective candidate for speeches and also representing a client against her opponent. The story is interesting because everything about Trump appears now to be interesting, but there is no problem under the lawyer ethics rules,” NYU law professor Stephen Gillers told LawNewz.com. Gillers is an expert on legal ethics.

Robbins Geller Rudman & Dowd is a high profile law firm, based out of San Diego, with considerable resources.  The lawsuit against Trump was filed in the Southern District of California (San Diego) back in 2013. The firm is frequently involved in multi-million dollar complex litigation. In 2008,  they obtained a $7.2 billion settlement for Enron shareholders as part of a massive federal class action lawsuit.

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