Jeff Bezos Puts The Pentagon On His Monopoly Board

Authored by Jason Ditz via The American Conservative,

While employees at Google and Microsoft are wary of collaborating with the military, Amazon revels in it…

Speaking at the Wired 25th anniversary last month month, Amazon CEO Jeff Bezos announced that his company will continue to accept Pentagon contracts. That includes a very controversial cloud-computing contract that Google and Microsoft have already backed out of due to vocal employee opposition to working with the U.S. military.

Amazon was long considered the front-runner for this contract, but Bezos’s rationale for taking it goes well beyond its being low-hanging fruit. He’s argued that the government’s job is to “make the right decision, even when it’s unpopular,” and that large tech companies should support those decisions irrespective of politics.

The $10 billion tied to the contract can’t hurt either. Whatever his motivation for sucking it up and taking one for team tech, Bezos’s public justification is a poor one, and it isn’t hard to see why. The Pentagon has a long history of immoral and reckless behavior, actions that objectively aren’t beneficial to the defense of the United States. Any company that blindly works with them does so at its own peril.

Employees at Google and Microsoft have already made a powerful case for why tech giants shouldn’t collaborate with the Defense Department. They don’t want to be responsible for developing technology that causes substantial harm, surveils others in violation of international norms, or contravenes human rights. The Pentagon can be counted on to do all three, and more.

Furthermore, the Pentagon’s growing interest in artificial intelligence (A.I.), particularly as it relates to warfighting, sounds out of the preamble for a dystopian novel. Hence why Google employees forced their company not to renew a controversial Pentagon contract in June involving A.I. While Amazon will be signing on to cloud computing, not A.I., it’s still more than a little concerning that Bezos was so adamant about the virtues of the DoD. (For what it’s worth, Amazon already works with the CIA.)

But Amazon has an interest that extends far beyond this single deal. The real prize is to become the military’s sole procurement source for off-the-shelf components. Disdainfully labeled Amazon.mil by critics, this initiative is a result of a congressional mandate that the Pentagon shift procurement to a single online marketplace.

The mandate is supposed to save the Pentagon money when buying run-of-the-mill items like bottled water. It would also give Amazon, the presumptive facilitator, a virtual monopoly on selling a vast array of items to a government department with nearly limitless money that’s notorious for overpaying for things.

Amazon is one of very few online companies that could even claim to provide this sort of service. In eagerly contracting with the Pentagon elsewhere, Bezos is laying the groundwork for this much bigger relationship.

Yet being the Pentagon’s friendly partner could come with potential costs. Bezos is setting Amazon up as an amoral alternative to the other major technology companies. When a Pentagon project breaks bad and the public starts asking how all this could have happened, the answer will be Amazon.

A recent test case for this was the NSA’s surveillance of the American public. Intended to be done entirely in secret, when it was revealed that the major telecoms were complicit, even though they were effectively forced by secret court orders to cooperate, their reputations suffered a hit. Customers began asking whether their privacy was safe with AT&T or Verizon.

Amazon’s complicity may still be under the radar, but it is all the riskier now that Bezos has publicly defended working with the Pentagon on matters others wanted nothing to do with. His quote about senior leadership making “the right decisions” could easily become the soundbite for a story about government excess going unchallenged by the private sector.

Bezos tries to paint this with a broad brush by contending that major companies must not walk away from the U.S. government over politics. Yet the consequences of Pentagon projects are potentially far-reaching, and large American companies cannot succor themselves with the rationale that they’re only following orders.

Amazon is going down a risky path. They say that if you lie down with dogs, you get up with fleas, and Amazon has made a conscious decision to climb into bed with some of the Pentagon’s most flea-bitten projects. If it wakes up in a mess, let’s make sure no one claims they didn’t see it coming.

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Liberty Links 11/3/18 – Taleb Says World Is More Fragile Today Than in 2007

As always, if you appreciate my work and want to contribute to independent media, consider becoming a monthly Patron, or visit the Support Page.

Top Links

Taleb Says World Is More Fragile Today Than in 2007 (Must watch, YouTube)

Pentagon Wants to Predict Anti-Trump Protests Using Social Media Surveillance (Motherboard)

The Yemen War Death Toll Is Five Times Higher Than We Think (The Independent)

Hillary Is Back: ‘I’d Like To Be President’ (The horror, YouTube)

Jair Bolsonaro Is Elected President of Brazil. Read His Extremist, Far-Right Positions in His Own Words. (Deeply disturbing, The Intercept)

Energy Giants Choose Nuclear Option in Election’s Biggest Fight Over Fossil Fuel (Every American should read this, but especially if you live in an oil and gas state, Capital & Main)

Google’s Saudi Ties (Google’s hypocrisy knows no bounds, Google Transparency Project)

Trump Is America’s National Piñata (Good read on the disgracefulness of U.S. mass media, The Automatic Earth)

Father of Web Says Tech Giants May Have to Be Split up (Reuters)

Social Democracy: Radicalize or Its over… (Paul Mason, Medium)

Jamaica Resorts Facing a ‘Historic’ Sexual Assault Problem (Very disturbing article, USA Today)

The ‘Unschooling’ Movement: Letting Children Lead Their Learning (A great listen, WBUR)

U.S. News/Politics

See More Links »

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White House Says US “Remains Open” To New Iran Deal As Sanctions Loom

After horrifying the executives at HBO by tweeting a meme about the impending reinstatement of sanctions against Iran on Friday (the image was a play on HBO’s “Winter is Coming” advertising campaign for its hit series “Game of Thrones”), President Trump clarified that the White House remained open to working out a “more comprehensive” agreement with Iran that would ideally help curb the regime’s “malign activities” in the Middle East and “forever block” Iran from building nuclear weapons.

Ayatollah

This isn’t the first time that Trump has said he is open to a “new deal” with Iran. But the mildly less threatening rhetoric was, we imagine, designed to encourage the pullback in oil prices seen in recent weeks. Earlier in the day, Secretary of State Mike Pompeo said the US would grant sanctions waivers to eight countries (but not the European Union as a whole). The US has also decided not to encourage SWIFT to disconnect Iranian banks from the global financial system.

Trump said in a statement released Friday afternoon that “powerful sanctions” against Iranian “energy, shipping, ship building…and sanctions against the Central Bank of Iran and other sanctioned Iranian banks” would take effect for the first time since shortly after President Obama agreed to the 2015 Iran deal with the other permanent members of the UN Security Council along with Germany. He also pointed out that the Iranian real has lost 70% of its value since Trump officially pulled out of the deal in May, and that Iranian defense spending has only continued to climb.

Our objective is to force the regime into a clear choice: either abandon its destructive behavior or continue down the path toward economic disaster.

The sanctions will target revenues the Iranian regime uses to fund its nuclear program and its development and proliferation of ballistic missiles, fuel regional conflict, support terrorism, and enrich its leaders.

These measures, along with 19 rounds of sanctions designations since January 2017, represent the toughest sanctions the United States has ever levied against Iran—and they are already having devastating effect on the Iranian economy.

Over the past year, the Iranian rial has lost about 70 percent of its value, and Iran’s economy is sliding into recession.  Iran’s inflation rate has nearly quadrupled since May of this year, reaching almost 37 percent in October.  More than 100 companies have decided to cease doing business with Iran, and we expect that number to grow.  Governments and businesses should ask themselves whether continuing to deal with Iran is worth the risk.

Trump insisted that the sanctions were intended to harm the Iranian regime, not the country’s “long suffering” people (though, in truth, it’s widely expected that the Iranian people will bear the brunt of the economic fallout).

Finally, I want to be clear that United States actions are aimed at the regime and its threatening behavior—not at the long-suffering Iranian people.   For this reason, we reiterate today that the sale of food, medicine, medical devices, and agricultural commodities to Iran has long been, and remains, exempt from the sanctions.

We call on the regime to abandon its nuclear ambitions, change its destructive behavior, respect the rights of its people, and return in good faith to the negotiating table.  We seek cooperation from our allies and partners in this effort.

The United States remains open to reaching a new, more comprehensive deal with Iran that forever blocks its path to a nuclear weapon, addresses the entire range of its malign actions, and is worthy of the Iranian people.

But while oil traders were likely relieved to learn that the Trump Administration has at least refrained from adopting the most extreme hard-line stance against Iran (a position that would have been further complicated by the backlash to the killing of Jamal Khashoggi), Iranian leaders have, unsurprisingly, remained defiant.

Ayatollah Ali Khamenei, Iran’s supreme leader, voiced defiance of the US president and said “the world opposes every decision made by Trump.”

“America’s goal has been to re-establish the domination it had [before 1979] but it has failed. America has been defeated by the Islamic Republic over the past 40 years,” the ayatollah said.

The leader of Iran’s Quds force took the condemnations of Trump one step further, tweeting a “Game of Thrones”-inspired image of his own promising “I will stand against you.”

While a deal with Iran remains unlikely (barring a dramatic deterioration in the relationship between the US and Saudi Arabia), we look forward to the next round of the US-Iran meme war.

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What’s Behind The Erosion Of Civil Society?

Authored by Charles Hugh Smith via OfTwoMinds blog,

Rebuilding social capital and social connectedness is not something that can be done by governments or corporations.

As the mid-term elections are widely viewed as a referendum of sorts, let’s set aside politics and ask, what’s behind the erosion of our civil society? That civil society in the U.S. and elsewhere is fraying is self-evident. It isn’t just the rise of us-or-them confrontations and all-or-nothing ideological extremes; social bonds between people are weakening.

There are many probable causes: addictive technologies such as social media and smartphones; chronic economic stress, greater mobility and a host of more subtle factors.

One such factor is the erosion of community and its replacement with state (government) or corporate structures. One of the most insightful essays I’ve read in the past few years is a report from the Guardian (U.K.) on What Happened When Walmart Left a low-income rural community in America’s Coal Country.

One of the most tragic findings, in my view, was that Walmart was the social hub of the community: Walmart was the place to go to meet friends, people-watch, walk around to pass the time, etc.

This is a remarkable reversal of a traditional community, which is centered around communal public spaces such as churches, temples, etc., town squares, Main Street, the local marketplace, etc. Now the center of social life is a corporate-owned private space dedicated to maximizing the profits of the corporation.

This dependency on corporate spaces is paralleled by a dependency on corporations and the state for income and the organization of social life.

This leads to the another tragedy: the near-complete lack of any non-state, non-corporate social structures; the general zeitgeist was near-total dependence on the state and corporations not just for income but for the structure of everyday life, to use historian Fernand Braudel’s phrase.

While the reporter found a few households had started gardens, the majority of people with what I term enforced leisure in my book Money and Work Unchained (i.e. little to no paid work available) did not use their leisure to create art (the fantasy of supporters of Universal Basic Income) or invest time and energy in non-state, non-corporate social structures; they spent their time watching TV, social media, etc.

This near-total dependence on state and corporate structures is so ubiquitous that it goes unnoticed and unmentioned. Not only have non-state, non-corporate social structures vanished, people have lost the values, skills and tools needed to assemble and maintain such structures.

We have lost much of the social connectedness that humans need, and we mourn this loss in ways that are not directly connected to our loss of social capital: addiction, loneliness, and early death.

How can we strengthen or repair our own connections and social fabric in such a disintegrative era?

There are two basic approaches: stop participating in destructive dynamics, and assemble the foundations of a connected social life.

If we use physical health as an analogy for social health, the first step towards improved health is stop consuming poison, i.e. stop destroying one’s health.

In the realm of decaying social relations, the poisons are readily apparent:

— The mass media, with its dependence on hysteria, fear, group-think and obsession with virtue-signaling as publicly displayed proof of one’s fealty to self-righteousness.

The mass media and social media both substitute passive watching and clicking for doing things in the real world via active participation.

–Toxic social media, a topic I discussed this week: Why Is Social Media So Toxic?

— Smartphones, when they cease to be occasional means of communication and become addictive: those who take their phones to bed, interrupt sex to check their phones (yes, studies have found this to be disturbingly common), ignore live conversations to respond to texts, etc., have a monkey on their back.

— An overly busy life that serves the needs of the workplace and household logistics but leaves no time, energy or awareness for actual intimacy, communication, friendship, sharing or belonging.

Why is it so difficult to make and maintain meaningful social bonds and belonging? While the long answer could easily fill several volumes, the short answer is something like this: the structure of modern-day life conspires against making and maintaining authentic social bonds.

By structure, I mean the large-scale financial /built structures of the economy and the large-scale structures of government—-the two hierarchies that dominate everyday life.

In effect, a vast experiment is taking place without any controls: an economic mode of production that focuses exclusively on maximizing profits is fostering 24/7 marketing and addictive technologies while a vast central state expands its reach into every aspect of daily life. Meanwhile, both dominant large-scale hierarchies have little reason to concern themselves with the erosion of the social order.

Rebuilding social capital and social connectedness is not something that can be done by governments or corporations; it requires a social revolution that is bottom-up, self-organizing–a do-it-yourself revolution without leaders or hierarchy or structure.

The good news is anyone can participate in this social revolution by re-ordering their everyday life to nurture authentic social connectedness.

*  *  *

My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is a ridiculously affordable $1.29 (Kindle) or $8.95 (print); read the first chapters for free (PDF). My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition.  Read the first section for free in PDF format. If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

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As Overdose Deaths Soar To Record Highs, FDA Approves New Painkiller That’s 1,000X More Powerful Than Morphine

Purdue Pharma and other pioneers of powerful opioid painkillers probably felt a twinge of regret on Friday when the FDA approved a powerful new opioid painkiller that’s 10 times stronger than fentanyl  – the deadly synthetic opioid that’s been blamed for the record number of drug overdose deaths recorded in 2017 – and 1,000 times more powerful than morphine, ignoring the objections of lawmakers and its own advisory committee in the process. 

After all that trouble that purveyors of opioids like Purdue and the Sackler family went to in order to win approval –doctoring internal research and suborning doctors to convince the FDA to approve powerful painkillers like OxyContin despite wildly underestimating the drug’s abuse potential – the agency might very well have approved those drugs any way? And opioid makers might have been able to avoid some of the legal consequences stemming from this dishonesty, like the avalanche of lawsuits brought by state AGs.

What’s perhaps even more galling is that the FDA approved the drug after official data showed 2017 was the deadliest year for overdose deaths in US history, with more than 70,000 recorded drug-related fatalities, many of which were caused by powerful synthetic opioids like the main ingredient in Dsuvia, the brand name under which the new painkiller will be sold.

Dsuvia

Dsuvia is a 3-millimeter tablet of sufentanil made by AcelRx. It’s a sublingual tablet intended to provide effective pain relief in patients for whom most oral painkillers aren’t effective. The FDA’s advisory committee voted 10-3 to recommend approval of the drug, a decision that was accepted by the FDA on Friday. The agency justified its decision by insisting that Dsuvia would be subject to “very tight” restrictions.

“There are very tight restrictions being placed on the distribution and use of this product,” said FDA Commissioner Scott Gottlieb in a written statement Friday regarding his agency’s approval of Dsuvia. “We’ve learned much from the harmful impact that other oral opioid products can have in the context of the opioid crisis. We’ve applied those hard lessons as part of the steps we’re taking to address safety concerns for Dsuvia.”

Still, some of the agency’s actions looked to critics like attempts to stifle internal criticism. For example, the agency scheduled the advisory committee vote on a day where the chairman of the committee, who was opposed to approval, could not attend – while circumventing its normal vetting process, despite the fact that the member in question had notified the agency of his unavailability months beforehand.

But the FDA rejected any and all criticisms related to Dsuvia being sold as a street drug by insisting that the risk of diversion (when doctor-prescribed drugs are illicitly sold on the black market) was low because the drug would only be prescribed in hospital settings, and wouldn’t be doled out at pharmacies. But critics said that, given its potency, Dsuvia would “for sure” be diverted at some level. They also rejected the FDA’s argument that Dsuvia satisfied an important need for pain treatment: offering rapid, effective relief for obese patients or others lacking easily accessible veins.

While a niche may eventually be found for Dsuvia, “it’s not like we need it…and it’s for sure, at some level, going to be diverted,” said Dr. Palmer MacKie, assistant professor at the Indiana University School of Medicine and director of the Eskenazi Health Integrative Pain Program in Indianapolis. “Do we really want an opportunity to divert another medicine?”

Fortunately for Dsuvia’s manufacturer, AcelRx, these public health risks pale in comparison to the enormous profits that the company stands to reap from sales. The company anticipates $1.1 billion in annual sales, and hopes to have its product in hospitals early next year.

It goes without saying that cancer patients and others suffering from life threatening illnesses have a legitimate need for effective pain relief. But when the FDA says Dsuvia is needed in the hospital setting, it probably isn’t telling the whole story. Because, as the Washington Post pointed out, the medication’s development was financed in part by the Department of Defense, which believes Dsuvia will be an effective treatment for emergency pain relief on the battlefield – like when a soldier gets his legs blown off after accidentally stepping on an IUD.

Meanwhile, the Department of Justice’s Jeff Sessions-backed war on medical marijuana continues despite President Trump’s token resistance.

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What Happens When You Stomp The Gas & The Brake Simultaneously?

Authored by Chris Hamilton via Econimica blog,

Pro-cyclical Trump / Congress vs. Counter-cyclical Fed

Fiscal Conservatism is Dead – Surging Government Spending Coupled with Tumbling Tax Receipts Are Fiscal Populism

Many American’s believe in a simple idea called fiscal conservatism.  Low taxation coupled with low government spending and low (or reduced) government debt.  However, the nation’s leadership (executive and legislative branches) have fallen in love with the idea of spending tax money you and I haven’t made yet.  The chart below breaks down the current $21.7 trillion federal debt into publicly traded Treasury’s outstanding (marketable) and that which is purchased by America’s Social Security and like trust fund surpluses known as Intra-Governmental debt.  Clearly, since 2007, marketable debt is soaring while trust fund surpluses are waning and will soon turn to outright sellers.  Fairly soon (early 2020’s), all net debt issued will be marketable…and with the fast growing size and cost of servicing that debt, interest payments will consume ever more of the tax revenue the government collects.

That the current administration (like decades of their predecessors) are not fiscal conservatives should come as no shock.  But, the current Congress and president have embraced a policy that should be termed as “fiscal populism”.  If you notice in the circled area on the far right of the chart, you will see the large declines in corporate tax revenue and also the zero growth in personal tax revenue.  However, the kicker is the parallel surge in federal government spending…driving that federal debt (above) vertical.

The chart below is the same as above but showing only 2007 through Q3 2018.

Again, same as above but showing 2017 through Q3 2018.  The Trump tax cuts took effect in Q1 of 2018 and the large year over year declines in corporate tax revenue were expected but perhaps not the zero growth in personal tax revenue.  Simultaneous to the tax cuts were large year over year increases in federal government spending (fiscal conservatives they ain’t).

The last chart details the never before seen (at least post WWII) divergence of counter-cyclical monetary and pro-cyclical fiscal policy.  Red columns are the quarterly year over year change in federal spending plus year over year change in federal tax revenues (increases in federal government spending and federal tax revenue decreases shown together as stimulus…decreases in spending and rising tax revenue shown as economic constraint).  Blue line is quarterly year over year change in the Federal Funds interest rate. 

Until now, increased federal spending coupled with lower tax revenue collected act as an economic stimulant typically in sync with interest rate cuts.  However, the president and Congress are undertaking large spending increases and reducing taxation to gas the economy (typically in-line with the onset of an economic crisis) while the Federal Reserve is moving in a pro-cyclical direction raising rates (plus selling off $50 billion/month from it’s balance sheet) in an attempt to stomp the brakes on the economy.

These two parties are clearly not on the same page and likely to only get further apart.  The Fed has committed to continued rate hikes and balance sheet reduction while the president / Congress continue to increase federal expenditures and are even discussing additional tax cuts, particularly targeting a reduction in personal taxes (of course, perhaps this is only pre-election jawboning).

BTW – Given that the US is rapidly closing in on full employment (regardless the quality)…hard to understand why further stimulus would be a good idea given there will essentially be no more people willing or able to enter the workforce.

And why that low 15 to 24 year old employment ratio isn’t about to rise much further.  Chart below shows the declining 15 to 24 year old population (green line) and the rise of the student class (blue line) over the working class (black line) and the total student loan debt undertaken to do so (red columns).

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2nd Kavanaugh Accuser Admits She Lied; Referred For Criminal Prosecution; Kamala’s Office Involved

A Kentucky woman who accused Supreme Court Justice Brett Kavanaugh of rape has been referred to the Department of Justice after she admitted that she lied

The woman, Judy Munro-Leighton, took credit for contacting the office of Sen. Kamala Harris (D-CA) as “Jane Doe” from Oceanside, California. Jane Doe claimed – without naming a time or place – that Kavanaugh and a friend raped her “several times each” in the backseat of a car. Harris referred the letter to the committee for investigation. 

“They forced me to go into the backseat and took 2 turns raping me several times each. They dropped me off 3 two blocks from my home,” wrote Munro-Leighton, claiming that the pair told her “No one will believe if you tell. Be a good girl.”

Kavanaugh was questioned on September 26 about the allegation, to which he unequivocally stated: “[T]he whole thing is ridiculous. Nothing ever — anything like that, nothing… [T]he whole thing is just a crock, farce, wrong, didn’t happen, not anything close.” 

The next week, Munro-Leighton sent an email to the Judiciary committee claiming to be Jane Doe from Oceanside, California – reiterating her claims of a “vicious assault” which she said she knew “will get no media attention.” 

Upon investigation, the Judiciary Committee investigators found that Munro-Leighton was a left wing activist who is decades older than Judge Kavanaugh, who lives in Kentucky. When Committee investigators contacted her, she backpedaled on her claim of being the original Jane Doe – and said she emailed the committee “as a way to grab attention.”

“I am not Jane Doe . . . but I did read Jane Doe’s letter. I read the transcript of the call to your Committee. . . . I saw it online. It was news.” claimed Munro-Leighton.

Grassley has also asked the DOJ to investigate Kavanaugh accuser Julie Swetnick, who claimed through her attorney, Michael Avenatti, that Kavanaguh orchestrated a date-rape gang-bang scheme in the early 1980s. 

President Trump chimed in Saturday morning, Tweeting: “A vicious accuser of Justice Kavanaugh has just admitted that she was lying, her story was totally made up, or FAKE! Can you imagine if he didn’t become a Justice of the Supreme Court because of her disgusting False Statements. What about the others? Where are the Dems on this?”

In a Friday letter to Attorney General Jeff Sessions and FBI Director Christopher Wray, Committee Chairman Chuck Grassley wrote: 

on November 1, 2018, Committee investigators connected with Ms. Munro-Leighton by phone and spoke with her about the sexual-assault allegations against Judge Kavanaugh she had made to the Committee. Under questioning by Committee investigators, Ms. Munro-Leighton admitted, contrary to her prior claims, that she had not been sexually assaulted by Judge Kavanaugh and was not the author of the original “Jane Doe” letter. When directly asked by Committee investigators if she was, as she had claimed, the “Jane Doe” from Oceanside California who had sent the letter to Senator Harris, she admitted: “No, no, no. I did that as a way to grab attention. I am not Jane Doe . . . but I did read Jane Doe’s letter. I read the transcript of the call to your Committee. . . . I saw it online. It was news.”

She further confessed to Committee investigators that (1) she “just wanted to get attention”; (2) “it was a tactic”; and (3) “that was just a ploy.” She told Committee investigators that she had called Congress multiple times during the Kavanaugh hearing process – including prior to the time Dr. Ford’s allegations surfaced – to oppose his nomination. Regarding the false sexual-assault allegation she made via her email to the Committee, she said: “I was angry, and I sent it out.” When asked by Committee investigators whether she had ever met Judge Kavanaugh, she said: “Oh Lord, no.”

Read Grassley’s letter below: 

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Stocks Aren’t Out Of The Woods Despite This Week’s Bounce

Authored by Jesse Colombo via RealInvestmentAdvice.com,

After last week’s sharp decline, stocks bounced a bit this week, and the talking heads on TV could hardly contain themselves. Unfortunately, this week’s bounce does absolutely nothing to negate the major technical breakdown that occurred last week. 

According to the chart below, the S&P 500 is still below its uptrend line, which means that the breakdown is still intact. The uptrend line is now an overhead resistance level. All of the movement that occurs between this line and the 2,550 to 2,600 support zone (the early-2018 lows) is basically randomness or “noise,” not “signal.” The S&P 500 would need to break back above its former uptrend line in a convincing manner in order to negate the breakdown. As I’ve been saying, the S&P 500 is likely to continue testing its 2,550 to 2,600 support zone before it’s able to stage a decent bounce. If the index closes below this zone, it would likely signal further declines ahead.

The Nasdaq Composite index is still below its uptrend line that it broke last week, which means that the breakdown is still intact:

I don’t expect much of a rebound until U.S. stock indices test their early-2018 lows, which means that the markets are likely to go even lower in the short-term. Even if/when we get a bounce, it’s not much to get excited about because it is likely to only be a short-term technical bounce or relief rally rather than a sustainable phase of the bull market. I have been warning that we are in a dangerous stock market bubble (please watch my presentation to learn more), so the breakdown of the past few weeks is very concerning.

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Was Anti-Semitic New York Graffiti Attacker A Liberal-Media-Darling Obama Volunteer?

Just days after the awful events of Pittsburgh, disgusting neo-Nazi graffiti was found Thursday inside a Brooklyn synagogue.

NYPD officials told Breaking911 that the suspect entered Brooklyn’s Union Temple around 8:30 p.m. Thursday night and used a black marker to deface three different locations with the messages, “die Jew rats we are here,” “Jews better be ready,” and “Hitler.”

As one would expect, New York’s officials were extremely quick to decry the disgusting actions, with NY Governor Cuomo releasing the following statement – with a clear intent to pin the blame on one side:

“I am disgusted by the discovery of anti-Semitic graffiti at a house of worship in Brooklyn. At a time when the nation is still reeling from the attack at the Tree of Life synagogue in Pittsburgh, New Yorkers stand united with the Jewish community and against hate in all its forms.

In New York, we have zero tolerance for discrimination in our laws or in our spirit. I have directed the State’s Hate Crimes Task Force to investigate this hideous act and hold those responsible accountable to the full extent of the law.

“As Governor, I am also doing everything in my power to ensure our religious institutions are free from violence and intolerance. This week, we announced the launch of an additional $10 million grant program to help protect New York’s non-public schools and cultural centers, including religious-based institutions.

The disgusting rhetoric and heinous violence in this nation has reached a fever pitch and is ripping at the fabric of America, and it must stop. In New York, we have forged community through chords of commonality and we will always stand together against hate and discrimination.”

Mayor Bill de Blasio called the hateful messages “tremendously upsetting.”

“Coming at a time when Jewish New Yorkers are feeling a profound sense of loss and sadness because of what happened at the Pittsburgh Tree of Life synagogue and all those who were killed there because of their faith.”

But, in an interesting twist, according to Breaking911, surveillance footage released by authorities captured a photo of the suspect, “described as a male Black, approximately 20-years-old, 5’8″, 140 lbs, with black hair and last seen wearing a red suit jacket.”

And yesterday morning, the local CBS station confirms a man is in custody for the ‘hate crime’.

26-year-old James Polite, of Brooklyn, allegedly wrote the graffiti, according to police.

The suspect also drew a picture of the Puerto Rican flag and wrote “Free P.R.”

Additionally, sources tell CBS2, Polite could be behind a series of fires at other shuls and yeshivas in the area. He was charged with criminal mischief, hate crime, and making graffiti in connection to the messages scrawled at Union Temple.

So not quite the white-supremacist, Trump-supporting, racist, bigot everyone was expecting?

But, in an even more potentially shocking twist, it is possible that the alleged serial anti-semitic graffiti artist is a former Barack Obama volunteer and liberal media darling…

In  2017, The New York Times wrote a lavish lovefest of a story:

James Polite spent much of his childhood in foster care.

In high school alone, Mr. Polite estimates, he was placed in 10 different homes. And he received little encouragement from social workers to go to college.

But Mr. Polite, now 25, still believed that college was the best next step. He found encouragement as a volunteer in his teens, registering voters and canvassing neighborhoods in New York City during Barack Obama’s first presidential bid.

Manhattan Democrat Christine Quinn still remembers their introduction on the steps of City Hall. “James was telling me his story,” she recalled recently in an interview. “And I said, ‘Do you have an internship?’ And he said ‘No.’ And I said, ‘Well, you do now.’”

“James was the adopted child of the Quinn administration,” she said. “And it wasn’t just me. It was the entire City Council staff.”

Of course, there could be another 26-year-old (25 in 2017) black male, living in Manhattan with the same name as James Polite, but we suspect that is a little unlikely.

As The New York Times reports, towards the bottom of their puff-piece:

Despite the assistance, Mr. Polite struggled at Brandeis. Smoking marijuana, he said, became a coping mechanism to manage his stress. He had first tried the drug at a foster home in his early teens, but in college his habit grew to three times a day. He was placed on a health leave of absence in late 2015 and required to enter a rehabilitation program. During treatment, he learned he had bipolar disorder, for which he is now medicated.

More likely is the young man with a bright future, heralded by the liberal media and politicians as a success story waiting to happen, has seen his life take a much darker route.

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Reason: An Oral History, 1968-2018

Today in Los Angeles, Reason is celebrating its 50th anniversary with “a day-long, day-glo” celebration that includes panels, lunch, dinner, conversation and, among other presentations, the debut of a new song by Remy, our resident musical parodist.

Over the past year, we recorded podcasts with all of the living editors in chief of the print magazine: Robert W. Poole, Marty Zupan, Virginia Postrel, Matt Welch, Katherine Mangu-Ward, and me. Here they are, arranged in order of editorial tenure. Together, these interviews tell the story of Reason and the past half-century from a uniquely libertarian perspective.

“Libertarianism” says Robert W. Poole, is “about more than just economics and politics, it really is. It’s about human flourishing and what are the conditions for human beings to have satisfying, flourishing [lives].”

Reason magazine was founded 50 years ago, in 1968, by Lanny Friedlander (1947-2011), who was then a student at Boston University.

Nobody has been part of Reason longer than PooleBob to everyone who knows him. Along with philosopher Tibor Machan and attorney Manny Klausner, Poole took over financial and editorial responsibility for the publication within a few years of its founding and eventually created the nonprofit Reason Foundation that publishes the print mag, this website, and our video and audio platforms. He is internationally known for his work as a transportation policy analyst. In the newest Reason Podcast, Poole tells Nick Gillespie about his years at the helm of Reason and what we got right (privatization, deregulation, private space flight, what caused Love Canal, and more) and wrong (including the real reason for Howard Hughes’ Glomar Explorer) back in the day.

“I was a college student during the Vietnam War era, but I was putting myself through college and was way too busy with that to be one of those students….When I landed with Reason…I didn’t know what ‘Berkeley’ was…I didn’t know who Goldwater was,” says Marty Zupan, who started writing for the magazine in 1972. “But when I encountered libertarian or classical liberal ideas…they just resonated with me.”

Zupan became editor-in-chief in 1984, helming the magazine during its move from Santa Barbara, California, to Los Angeles. In 1989, she left Reason and the West Coast to take a job at the Institute for Humane Studies, where she would become president in 2001 before retiring in 2016. Her Reason archive is online here.

In this Reason Podcast, Zupan talks with me about her experiences and growth in the libertarian movement and focuses on the unique role that the magazine of “free minds and free markets” has played over the past half-century. “One of the virtues of Reason was that it drew on the multiple strands within the libertarian, classical liberal world out there,” she says. “Reason would publish a debate, say, between a non-interventionist and a, ‘No, really the Soviet Union and its empire is an existential threat to the U.S. and we need to do something about it.’ We had the internal debates.”

“When I was in college,” explains Virginia Postrel, “I developed the career aspiration to be the editor of Reason magazine.” Just a few years after graduating, she had accomplished that goal (and much, much more), joining Reason‘s staff in 1986 and then running the magazine from July 1989 until January 2000.

No one has had a more profound intellectual and journalistic influence on Reason than Postrel. During her tenure, Reason.com was launched in the early days of the web revolution; Reason was a four-time finalist for National Magazine Awards, the highest honor in the industry; and Ronald Bailey, Brian Doherty, Jacob Sullum, Jesse Walker, and I all joined our masthead. Postrel became one of the leading public intellectuals of her generation, publishing her first book, The Future and Its Enemies, in 1998. Since leaving Reason, Postrel became a pioneer in blogging; served as a columnist for The New York Times, The Atlantic, and The Wall Street Journal; and published The Substance of Style (2003) and The Power of Glamour (2013). She is, in the words of Vanity Fair, “a master D.J. who sequences the latest riffs from the hard sciences, the social sciences, business, and technology, to name only a few sources.”

In this wide-ranging discussion, Postrel lays out how her vision of the magazine differed from her predecessors’ and talks about how many of the issues that dominated her tenure—immigration reform, trade and regulatory policy, the biotech revolution—remain front and center in public discourse.

She also speaks to the strengths and limits of libertarian thought. “A lot of libertarians like to imagine that we can start with a clean slate…and have what I call ‘libertarianism as algebra,'” she says. “But that’s not how society works. We’re all embedded in history.”

Envisioning Reason as “a mainstream intellectual magazine with an unusual point of view,” Postrel explains, “I wanted Reason to be part of a long and deep and broad and complicated classical liberal tradition stretching back through thinkers, not just 20th century thinkers like Friedman and Hayek…that stretches back not only through those kinds of thinkers but also through the Scottish Enlightenment people, Smith and Hume.”

I joined the staff in 1993 as an assistant editor and served as editor in chief of the magazine and website from 2000 to 2008. Then I became editor in chief of Reason.com and Reason TV, a dual position I held until earlier this year, when I became an editor at large.

Katherine Mangu-Ward conducted the wide-ranging interview for this episode. She zeroed in on a 1999 cover story of mine, “All Culture, All the Time,” as illuminating many of the themes that Reason would explore under my stewardship. The story celebrated what I called “cultural proliferation” and the breakdown of single standards of greatness, quality, seriousness, legitimacy, you name it. Just as the economic sector had been deregulated and liberalized in key ways during the 1970s, ’80s, and ’90s, the cultural sphere of our lives was finally deregulated. Let a 1,000 websites bloom! I likened what was happening at the turn of the century to the breakdown of state religion in 17th-century England.

From this podcast:

Religious freedom didn’t mean that people gave up on standards or religion didn’t matter anymore or anything like that. It meant that people could finally express themselves and create the worlds that they wanted to live in. They could debate and argue and mongrelize and hybridize things. I think that’s a really powerful way to look at the world that we’re in now. The other [main point in the story comes from] James Buchanan, the recently vilified libertarian economist who helped to create “public choice” economics and won a Nobel Prize for doing so. He talked about Albert Hirschman’s ideas of “exit, voice, and loyalty.” He used to stress in a lot of his work that when people can exit systems, it’s a good thing. That’s basically what I think cultural proliferation [does]. It allows people cultural exit. It didn’t mean they didn’t want culture. It just meant they got to embrace their own culture and their own morality and things like that. It’s an incredibly liberating and better world because of that.

“In those original weeks of Ferguson,” says Reason Editor at Large Matt Welch while talking about the 2014 police shooting that started nationwide protests and conversations about police violence, “we started seeing the country use terms and looking at issues that [Reason had] been using and looking at for years. So things like the militarization of police, a great Radley Balko phrase, suddenly was on the tips of everyone’s tongue…. [In the] last couple of years, [we’re seeing it with] civil asset forfeiture, just what an awful thing that is, or the way local cities just shake down their poorest residents in the criminal justice system as a way to fund their operations.” He also points to pot legalization, marriage equality, warnings about mounting national debt, and alarm over the ways campuses handle sexual abuse as cases where Reason has been way ahead of the curve.

Welch, who was editor of the print magazine from 2008 through 2016, talks about how he became a libertarian and learned about Reason, what it was like working at The Los Angeles Times opinion page, and whether he still believes in “The Libertarian Moment,” a concept that he and I came up with in 2008.

It’s a waste of time to vote. Disposable plastic shopping bags are a brilliantly engineered technology that should be celebrated, not taxed out of existence. Of course we should welcome our future robot overlords. Here’s a great recipe for pot brownies.

Those are but a few of the memorable, provocative articles that Reason Editor in Chief Katherine Mangu-Ward has contributed to our pages over the years. Before she rose to the top of the masthead, Mangu-Ward worked for us back in 2000 as an intern. After graduating from Yale, she worked for The Weekly Standard and The New York Times before returning to Reason in 2006 as an associate editor.

Founded in 1968 by Lanny Friedlander (1947–2011), Reason is celebrating its 50th anniversary by hosting a series of in-depth conversations with past editors in chief about how the magazine has changed since its founding, what we’ve gotten right and wrong over the years, and what the future holds for believers in “free minds and free markets.”

I talked with Mangu-Ward about how she became libertarian, why she likes to defend the indefensible, how she came up with the masterful “Burn After Reading” issue of Reason (which teaches you how to build a Glock in your kitchen, hire an escort, hide your Bitcoin, and more), and what she thinks the world will look like in 2068.

Audio production by Ian Keyser.

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