The One Number That Could Reveal A Chinese Coronavirus Cover-Up

The One Number That Could Reveal A Chinese Coronavirus Cover-Up

Submitted by Chris Irons of Quoth the Raven Research – Twitter: @QTRResearchPodcast

The Wuhan coronavirus continues to wreak havoc across the globe. It caused a 600 point sell off in the Dow Jones on Friday, prompted the first U.S. quarantine in a half century and has resulted in various travel bans around the globe. Famously, even tourist “hot spot” Iraq doesn’t want Chinese citizens coming into the country.

In addition, it appears as though the numbers coming out of Hubei province are accelerating, with the area reporting 1,921 new cases and 45 new deaths as of Saturday night. 

While I am not going to comment about various theories regarding the viruses origin that have been circulating the internet, I will say that these reactions to the virus have all been (mostly) to numbers provided to us by the Chinese government.

The skepticism around the Chinese government’s data comes as no surprise to me. I have spent more than a half decade researching U.S. listed China based companies and working daily and directly with Chinese nationals to uncover fraud being perpetuated on American capital markets.

The research of our firm and the story of our firm’s partner, Dan David, was featured in a documentary called The China Hustle that was produced by Academy Award winner Alex Gibney and backed by Mark Cuban’s film company, Magnolia Pictures. While not an expert, I consider myself to have a better understanding of the ethos coming out of the country than most people. 

And in my opinion, I believe people should harbor a skeptical opinion of anything that comes out of the Chinese government.

So, what data am I looking at to try and verify or contradict China’s claims? I’m watching the fatality rate outside of China. As of right now, the fatality rate of about 2% (NY Times says “less than 3%”), according to China’s numbers, is often cited as reason not to worry about the virus. Let us first remember that the normal flu has a fatality rate of about 0.4%, which makes the Wuhan coronavirus far more lethal. It also spreads quicker. 

Chart provided by NY Times

For these reasons, I am frightened by the amount of people writing this outbreak off with direct comparisons to the normal flu. I am also alarmed by the consistent travel in and out of China that has been occurring while the U.S. government has dragged its feet in suspending flights. 

“China has about four times as many train and air passengers as it did during the SARS outbreak,” the New York Times commented. The number of people affected has already skyrocketed past the SARS outbreak. 

Chart provided by NY Times

If the numbers coming out of China are being altered, the international fatality rate should tip us off to it. As the data set of infections outside of China continues to grow and inevitable fatalities are reported (even at a ~2% clip, it is inevitable), we should be able to gauge for ourselves whether the data we have been using from China has, in fact, been accurate. 

The World Health Organization praised China during their press conference last Thursday for taking unprecedented measures to quarantine the country. In my opinion and based solely on action/reaction common sense, the measures being taken in China – quarantining 50 million people in over a dozen major cities – does not match up with the numbers that we have been given by the government. 

Certainly, unconfirmed posts that continue to surface on Twitter and other social media sites paint a far more dire picture than the numbers appear to be showing.

The potential consequences of finding out that the numbers coming out of China are suppressed could be meaningful. It could put the story much deeper into the mainstream media and have a profound effect on capital markets and the behavioral psychology of people living outside of China.

As a reminder, despite the government saying that the risks of outbreak are low outside of China, I’ll remind readers that it costs nothing to take extra precautions by stocking simple items that you will eventually go through even if an outbreak outside of China doesn’t happen.

These items include extra laundry detergent, N95 or N100 facemasks, 30 days worth of food supplies, disinfectant wipes and sprays, cold medicine to mitigate potential symptoms, hand sanitizer (or some type of anti-septic), latex gloves and even goggles and tyvek suits. There are several checklists on the internet, like this one, that can be valuable for those looking to take some extra precautions. 

Let’s see what the numbers continue to tell us in coming days. 


Tyler Durden

Sun, 02/02/2020 – 19:15

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Oil Crashes Into Bear Market As Chinese Oil Demand Said To Plummet 20% Due To Coronavirus “Demand Shock”

Oil Crashes Into Bear Market As Chinese Oil Demand Said To Plummet 20% Due To Coronavirus “Demand Shock”

While the world awaits with bated breath the clobbering that awaits Chinese assets when they reopen in a few hours after the Lunar New Year with the PBOC set to injects billions to prop up stocks while banning short selling as reported earlier, moments ago we got a dismal advance look at just how dire the impact on both the Chinese, and global, economies will be as a result of the coronavirus.

According to Bloomberg, Chinese oil demand has dropped by about three million barrels a day, or 20% of total consumption, as a result of the creeping economic paralysis unleashed by the coronavirus epidemic. The drop is said to be the largest demand shock the oil market has suffered since the global financial crisis of 2008 to 2009, and the most sudden since the Sept. 11 attacks. More importantly, the plunge in Chinese demand will likely force the hand of the OPEC cartel, which is already considering an emergency meeting to cut production and staunch the decline in prices (and to which one can only say that Saudi Arabia picked its Aramco IPO window exquisitely).

Chinese and Western oil executives, speaking on condition of anonymity because they aren’t authorized to discuss the matter publicly, said the decline was measured against normal levels for this time of year. It’s a measure of the current loss in demand, rather than the average loss since the crisis started, which would be smaller.

As a reminder, in 2016 China surpassed the US as the world’s largest oil importer (which in turn, has become energy independent in recent years, as a result of an explosion of shale oil production, at least until the day of reckoning for all those junk bonds keeping the US shale industry finally comes), and is the world’s marginal oil price setter, so any changes in consumption have an outsize impact on the global energy market.

The country consumes about 14 million barrels a day – equivalent to the combined needs of France, Germany, Italy, Spain, the U.K., Japan and South Korea. Or rather consumed, as that number is now about 2 million barrels per day less.

Predictably, the plunge in Chinese oil demand is already reverberate across the global energy market, with sales of some crudes slowing to a crawl, tanker rates crashing and benchmark prices in free-fall, with Friday closing price about 14% lower since Jan 20 when the world first started focusing on the China pandemic… a free fall which only accelerated after the Bloomberg report which sent Brent tumbling on Sunday night, and which has just entered bear market territory, plunging over 22% since its January 8 peak.

Sales of Latin American oil cargoes to China came to a halt last week, while sales of West African crude, a traditional source for Chinese refineries, are also slower than usual, traders said.

Meanwhile, as Bloomberg reports, Chinese refineries are storing unsold petroleum products such as gasoline and jet-fuel, but every day stockpiles are growing, and some refineries may soon reach their storage limits. If that were to happen, they would have to cut the amount of crude they process. One executive said that refinery runs were likely to be cut soon by 15-20%.

In response to the collapse in Chinese demand, OPEC and Russia are weighing options to respond to the crisis and there have been discussions about calling an emergency meeting. Saudi Arabia is pressing for a gathering sooner than the one scheduled for March 5-6, though it has run into resistance from Russia. As Bloomberg notes, the Saudi and Russian oil ministers spoke on the phone for an hour on Thursday and another 30 minutes on Friday, according to Russians officials. For now, OPEC has called a technical meeting this week to assess the situation, and the Joint Technical Committee will report back to ministers.

“Nothing concentrates a producer’s mind more than the prospect of a crude oil price bust,” said Bob McNally, president of Rapidan Energy Group, and a former White House oil official under President George W. Bush.

And judging by where Brent is trading now, having plunged into a bear market in just three weeks, the producers will be very, very concentrated.


Tyler Durden

Sun, 02/02/2020 – 18:48

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Will the Justices skip the 2020 State of the Union?

On January 19, 1999, President Clinton gave his penultimate State of the Union address. During that time, the Senate impeachment trial was ongoing. Indeed, earlier that day, his lawyers had wrapped up their first day of arguments. Later that evening, Chief Justice Rehnquist, as well as Justices Stevens and Scalia were absent from the address. Todd Peppers and Micheal Giles speculated that the “Chief Justice effectively ‘recused’ himself from attending the 1999 State of the Union Address, since he was currently presiding over the impeachment trial in the United States Senate.”

One year later, President Clinton gave his final state of the union address on January 27, 2000. All nine Justices stayed home from the address. The Court sent a two-sentence message to the Sergeant at Arms:

“Justices of the court had planned to attend the State of the Union address, but travel changes and minor illnesses have intervened. No justices will be in attendance, but they do thank you for the invitation to be present for the address.”

The Times observed that several of the Justices seemed to have legitimate reasons to skip it:

The two Clinton appointees to the court, Justices Stephen G. Breyer and Ruth Bader Ginsburg, cited health reasons for skipping the speech.

Justice Ginsburg has been undergoing radiation treatment after colon cancer surgery. Justice Breyer sent Mr. Clinton a note saying he wanted to attend, but he was homebound with the flu.

Justice John Paul Stevens is taking care of his wife, who recently had hip replacement surgery. Justice Clarence Thomas is in New Orleans, where his brother died on Sunday. Justice Anthony M. Kennedy has to be in New York to deliver a speech on Friday.

There was no explanation from the court for the absences of Chief Justice William H. Rehnquist or Justices Antonin Scalia, Sandra Day O’Connor or David H. Souter. Last year, when Chief Justice Rehnquist was absent, he stayed away because he was presiding over the president’s impeachment trial.

Ted Olson offered some speculation:

The White House had no comment on the court’s truancy, but others did.

”I’m just astonished,” said Theodore B. Olson, a Washington lawyer and former Justice Department official in the Reagan administration. ”On the other hand, these things have become so ritualistic and boring that it would be easy to find more entertaining alternatives.”

”Maybe,” Mr. Olson added, ”enough of them saw what the chief justice went through during the impeachment trial that they decided they didn’t want to go near the place.”

Will any of the Justices skip the 2020 address? If Roberts follows Rehnquist’s practice, he may skip the address. We know that Justices Alito and Thomas do not attend the addresses as a matter of principle. And Justice Ginsburg has never attended a State of the Union address with a Republic president. (Yes, her attendance pattern is that obvious.). If Roberts is absent, Breyer will be the most senior-associate Justice present. He will be flanked by Justices Sotomayor, Kagan, Gorsuch, and Kavanaugh.

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Will the Justices skip the 2020 State of the Union?

On January 19, 1999, President Clinton gave his penultimate State of the Union address. During that time, the Senate impeachment trial was ongoing. Indeed, earlier that day, his lawyers had wrapped up their first day of arguments. Later that evening, Chief Justice Rehnquist, as well as Justices Stevens and Scalia were absent from the address. Todd Peppers and Micheal Giles speculated that the “Chief Justice effectively ‘recused’ himself from attending the 1999 State of the Union Address, since he was currently presiding over the impeachment trial in the United States Senate.”

One year later, President Clinton gave his final state of the union address on January 27, 2000. All nine Justices stayed home from the address. The Court sent a two-sentence message to the Sergeant at Arms:

“Justices of the court had planned to attend the State of the Union address, but travel changes and minor illnesses have intervened. No justices will be in attendance, but they do thank you for the invitation to be present for the address.”

The Times observed that several of the Justices seemed to have legitimate reasons to skip it:

The two Clinton appointees to the court, Justices Stephen G. Breyer and Ruth Bader Ginsburg, cited health reasons for skipping the speech.

Justice Ginsburg has been undergoing radiation treatment after colon cancer surgery. Justice Breyer sent Mr. Clinton a note saying he wanted to attend, but he was homebound with the flu.

Justice John Paul Stevens is taking care of his wife, who recently had hip replacement surgery. Justice Clarence Thomas is in New Orleans, where his brother died on Sunday. Justice Anthony M. Kennedy has to be in New York to deliver a speech on Friday.

There was no explanation from the court for the absences of Chief Justice William H. Rehnquist or Justices Antonin Scalia, Sandra Day O’Connor or David H. Souter. Last year, when Chief Justice Rehnquist was absent, he stayed away because he was presiding over the president’s impeachment trial.

Ted Olson offered some speculation:

The White House had no comment on the court’s truancy, but others did.

”I’m just astonished,” said Theodore B. Olson, a Washington lawyer and former Justice Department official in the Reagan administration. ”On the other hand, these things have become so ritualistic and boring that it would be easy to find more entertaining alternatives.”

”Maybe,” Mr. Olson added, ”enough of them saw what the chief justice went through during the impeachment trial that they decided they didn’t want to go near the place.”

Will any of the Justices skip the 2020 address? If Roberts follows Rehnquist’s practice, he may skip the address. We know that Justices Alito and Thomas do not attend the addresses as a matter of principle. And Justice Ginsburg has never attended a State of the Union address with a Republic president. (Yes, her attendance pattern is that obvious.). If Roberts is absent, Breyer will be the most senior-associate Justice present. He will be flanked by Justices Sotomayor, Kagan, Gorsuch, and Kavanaugh.

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“I Felt Like I Was In Hell” – NYT Exposes Rampant Sexism, Harassment & “Toxic Masculinity” At Victoria’s Secret

“I Felt Like I Was In Hell” – NYT Exposes Rampant Sexism, Harassment & “Toxic Masculinity” At Victoria’s Secret

The reaction that L Brands shareholders displayed last week following reports that Les Wexner was planning to sell Victoria’s Secret and step down from leading the parent company is all readers really need to know when it comes to Wexner’s legacy.

As the founder and CEO of L Brands, Wexner took Victoria’s Secret, a brand he bought in 1980 for a million dollars and transformed it into a multibillion dollar juggernaut in women’s fashion. But years of tepid sales, combined with the cancellation of the VS fashion show and the canning of longtime marketing chief Ed Razek last August were harbingers of more change to come. And after Wexner’s name was once again dragged through the mud thanks to his status as a key enabler of former protege Jeffrey Epstein (with whispers that his conduct as Epstein’s biggest financial benefactor might even have verged on criminal), it seemed obvious that the man who once ruled the company from a position of untouchable strength had finally lost the confidence of the board, and – more importantly – of its investors.

When news of the pending sale of VS and Wexner’s plan for retirement hit the tape last week, some wondered about the timing, seeing as the company’s earnings report isn’t due for another three-and-a-half weeks.

Well, a report published Saturday by the New York Times might offer a few clues. After four Times reporters interviewed more than two dozen former models and employees, the paper put together a #MeToo-style expose revealing allegations of abusive behavior by top executives – behavior that Wexner was aware of, and which he openly condoned.

But rampant sexism and a culture that protected bullies and sex pests weren’t Wexner’s only shortcomings, according to NYT. He also rebuffed and punished executives who tried to steer Victoria’s Secret in a more progressive and contemporary direction – for example, executives who suggested selling underwear that could actually fit American women.

Six current and former executives said in interviews that when they tried to steer the company away from what one called its “porny” image, they were rebuffed. Three said they had been driven out of the company.

Criticism of Victoria’s Secret’s anachronistic marketing went viral in 2018 when Mr. Razek expressed no interest in casting plus-size and “transsexual” models in the fashion show.

When it came to depredations targeting models, Razek showed no qualms about flexing his power and leverage to try and push models to date him.

He also clearly allowed Epstein to portray himself as an executive at the company as a ruse to meet with models.

“I had spent all of my savings getting Victoria’s Secret lingerie to prepare for what I thought would be my audition,” a woman identified as Jane Doe said in a statement read aloud last summer in a federal court hearing in the Epstein case. “But instead it seemed like a casting call for prostitution. I felt like I was in hell.”

Razek left the company in August, just before the company cancelled the Victoria’s Secret fashion show. But the blame for his behavior ultimately falls on Wexner, an executive who clearly had no qualms about enabling abusers, especially when their victims were minors and/or women.

“With the exception of Les, I’ve been with L Brands longer than anyone,” Mr. Razek wrote to employees in August when he announced he was leaving the company he had joined in 1983.

Mr. Razek was instrumental in selecting the brand’s supermodels – known as “Angels” and bestowed with enormous, feathery wings – and in creating the company’s macho TV ads.

But his biggest legacy was the annual fashion show, which became a global cultural phenomenon.

“That’s really where he sunk his teeth into the business,” said Cynthia Fedus-Fields, the former chief executive of the Victoria’s Secret division responsible for its catalog. By 2000, she said, Mr. Razek had grown so powerful that “he spoke for Les.”

Wexner was also portrayed as behind the times, particularly where his views on the ‘body positive’ movement were concerned

In March, at a meeting at Victoria’s Secret headquarters in Columbus, Ohio, an employee asked Mr. Wexner what he thought about the retail industry’s embrace of different body types. He was dismissive.

“Nobody goes to a plastic surgeon and says, ‘Make me fat'” Mr. Wexner replied, according to two attendees.

Razek would sometimes directly remind models that he could make or break their careers.

Mr. Razek often reminded models that their careers were in his hands, according to models and current and former executives who heard his remarks.

Alyssa Miller, who had been an occasional Victoria’s Secret model, described Mr. Razek as someone who exuded “toxic masculinity.” She summed up his attitude as: “I am the holder of the power. I can make you or break you.”

He would sometimes pester models for their phone numbers while they were standing around in VS lingerie. He also showed a preference for young, typically barely legal models.

At castings, Mr. Razek sometimes asked models in their bras and underwear for their phone numbers, according to three people who witnessed his advances. He urged others to sit on his lap. Two models said he had asked them to have private dinners with him.

One was Ms. Muise. In 2007, after two years of wearing the coveted angel wings in the Victoria’s Secret runway show, the 19-year-old was invited to dinner with Mr. Razek. She was excited to cultivate a professional relationship with one of the fashion industry’s most powerful men, she said.

Mr. Razek picked her up in a chauffeured car. On the way to the restaurant, he tried to kiss her, she said. Ms. Muise rebuffed him; Mr. Razek persisted.

For months, he sent her intimate emails, which The Times reviewed. At one point he suggested they move in together in his house in Turks and Caicos. Another time, he urged Ms. Muise to help him find a home in the Dominican Republic for them to share.

“I need someplace sexy to take you!” he wrote.

Ms. Muise maintained a polite tone in her emails, trying to protect her career. When Mr. Razek asked her to come to his New York home for dinner, Ms. Muise said the prospect of dining alone with Mr. Razek made her uneasy; she skipped the dinner.

She soon learned that for the first time in four years, Victoria’s Secret had not picked her for its 2008 fashion show.

One incident reported by the NYT is particularly cringe-worthy: Razek allegedly made a lewd comment about supermodel Bella Hadid’s “titties”, and whether they would meet TV standards, right in front of the influential model and her team.

In 2018, at a fitting ahead of the fashion show, the supermodel Bella Hadid was being measured for underwear that would meet broadcast standards. Mr. Razek sat on a couch, watching.

“Forget the panties,” he declared, according to three people who were there and a fourth who was told about it. The bigger question, he said, was whether the TV network would let Ms. Hadid walk “down the runway with those perfect titties.” (One witness remembered Mr. Razek using the word “breasts,” not “titties.”)

At the same fitting, Mr. Razek placed his hand on another model’s underwear-clad crotch, three people said.

And with that, the same newspaper that helped launch the #MeToo movement has claimed another scalp in its crusade to rework American culture in accordance with its progressive, ‘body positive’ agenda. The age of Wexner and Razek at L Brands has ended. What’s next? Only time will tell.


Tyler Durden

Sun, 02/02/2020 – 18:25

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Baby Boomers Paid A 6.6x PE For The S&P In 1982. Millennials Have To Pay 31x

Baby Boomers Paid A 6.6x PE For The S&P In 1982. Millennials Have To Pay 31x

Submitted by Eric Peters, CIO of One River Asset Management

“Let’s start with what I’d tell a 25-year-old to not do with investment capital,” answered the CIO. He’d been asked how our youth should invest for 10-15yrs.

“I’d tell them to not blindly follow their parents and grandparents as they pay ever higher multiples for a shrinking pool of equity assets,” he continued.

In 1982 when Baby Boomers were coming of age, they paid a 6.6x Shiller price-to-earnings ratio for the S&P 500. By 1990 when the median Baby Boomer was 35-years-old, they had bid the Shiller PE to 16.5x. That same year, Baby Boomers owned 33% of all US real estate assets by value. Fast forward to 2020, the median Millennial is 31-years-old and they own just 4% of US real estate assets. If they scrape together a few bucks after paying down student loans, they must pay a 31.3x Shiller PE multiple to buy the S&P 500.

“To win a game, play to your strengths, exploit your opponent’s weakness,” said the CIO. “As people age their creativity slips away. Their imagination withers. Their risk appetite fades. Their ambition dwindles. Their drive slides. And this leaves them incapable of reimagining the world, let alone building that future,” he said.

“But as people age, they do accumulate capital. And recognizing that this is their only remaining competitive advantage, they unsurprisingly lobby for policies that enhance its value.”

Baby Boomers are the wealthiest cohort in all human history. They’ve shifted the game’s rules to entrench their interests. Which has both limited competition for their companies and artificially shrunk the pool of investable equity assets.

“There’s too much capital in the world today relative to too few equity assets. 25-year-olds should not pay a 31.3x Shiller PE to buy their grandparent’s equities. They should play to their strengths and fight to build new companies that unseat established ones. Creating new equity assets to ease the acute shortage.”


Tyler Durden

Sun, 02/02/2020 – 18:00

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The Primary Mechanism Of Your Oppression Is Not Hidden At All

The Primary Mechanism Of Your Oppression Is Not Hidden At All

Authored by Caitlin Johnstone via Medium.com,

I write a lot about government secrecy and the importance of whistleblowers, leakers and leak publishers, and for good reason: governments which can hide their wicked deeds from public accountability will do so whenever possible. It’s impossible for the public to use democracy for ensuring their government behaves in the way they desire if they aren’t allowed to be informed about what that behavior even is.

These things get lots of attention in conspiracy circles and dissident political factions. Quite a few eyes are fixed on the veil of government opacity and the persecution of those brave souls who try to shed light on what’s going on behind it. Not enough eyes, but quite a few.

What gets less attention, much to our detriment, is the fact that the primary mechanism of our oppression and exploitation is happening right out in front of our faces.

The nonstop campaign by bought politicians, owned news outlets, and manipulated social media platforms to control the dominant narratives about what’s going on in the world contribute vastly more to the sickness of our society than government secrecy does. We know this from experience: any time a whistleblower exposes secret information about the malfeasance of powerful governments like NSA surveillance or Collateral Murder, we see not public accountability, nor demands for sweeping systemic changes to prevent such malfeasance from reoccurring, but a bunch of narrative management from the political/media class.

This narrative management is used to shift attention away from the information that was revealed and onto the fact that the person who revealed it broke the law or misbehaved in some way. It’s used to convince people that the revelations aren’t actually a big deal, or that it was already basically public knowledge anyway. And it’s used to manipulate public attention on to the next hot story of the day and memory hole it underneath the white noise of the media news churn. And nothing changes.

We’ve seen it happening over and over and over again. The narrative management machine has gotten so effective and efficient that it’s been able to completely ignore the recent revelation that the US, UK and France almost certainly bombed Syria in 2018 for a completely false reason. A few half-assed Bellingcat spin jobs and an otherwise total media blackout, and it’s like the whole thing never happened.

What this tells us is that our first and foremost problem is not the fact that conspiracies are happening behind a curtain of government secrecy, but that the way people think, act and vote is being actively manipulated right out in the open. Government secrecy is indeed one aspect of establishment narrative control, but controlling the public’s access to information is only one aspect. The bigger part of it is controlling how the public thinks about information.

The reason people never use the power of their superior numbers to force real change, even though they’re being exploited and oppressed in myriad ways by the ruling class, is because they’ve been propagandized into accepting the status quo as desirable (or at least normal). The propaganda of the political/media class is therefore the establishment’s front line of defense. Its most powerful, and essential, weapon.

This is important for dissidents of all stripes to understand, because it means we’re not just passively waiting around for another Manning or Snowden or an Ian Henderson to give us information which we can use to fight the oppression machine. Those individuals have done a great public service, but the battle to awaken human consciousness to what’s really going on in our world is in no way limited to leakers and whistleblowers. It is not at the mercy of government secrecy.

If you are engaged in any type of media, you are engaging the narrative matrix which keeps the public asleep and complacent. It doesn’t matter if you have a Twitter account, a Youtube account, some flyers or a can of spray paint: if you are capable of getting any kind of message out there, you are able to directly influence the mechanism of your oppression. You are able to inform people that they are being lied to, you are able to explain why, and you are able to point them to where they can find more information.

This is extremely empowering. You do not need to wait around hoping that some bombshell piece of information makes it past all the various security checks and spinmeisters and triggers a real social awakening. You can be that information. You can become a catalyst for that awakening.

The key to turning this ship around does not lie hidden somewhere behind a veil of government opacity. It lies in you. It lies in all of us. We can begin awakening our fellow humans right now by attacking the narrative management of the propaganda machine that sits right in front of us, unarmored and unhidden.

*  *  *

Thanks for reading! The best way to get around the internet censors and make sure you see the stuff I publish is to subscribe to the mailing list for my website, which will get you an email notification for everything I publish. My work is entirely reader-supported, so if you enjoyed this piece please consider sharing it around, liking me on Facebook, following my antics on Twitter, checking out my podcast on either YoutubesoundcloudApple podcasts or Spotify, following me on Steemit, throwing some money into my hat on Patreon or Paypalpurchasing some of my sweet merchandise, buying my new book Rogue Nation: Psychonautical Adventures With Caitlin Johnstone, or my previous book Woke: A Field Guide for Utopia Preppers. For more info on who I am, where I stand, and what I’m trying to do with this platform, click here. Everyone, racist platforms excluded, has my permission to republish or use any part of this work (or anything else I’ve written) in any way they like free of charge.

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Tyler Durden

Sun, 02/02/2020 – 17:10

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China Censors Top Local Media Outlet Over Claims Beijing Is Underreporting Cases, Deaths

China Censors Top Local Media Outlet Over Claims Beijing Is Underreporting Cases, Deaths

Let’s be honest, do you think China is reporting the actual coronavirus cases and deaths? After all, Beijing has been the master of falsifying its economic growth figures for years, what makes you think they’ll change in the reporting of the deadly virus outbreak? 

Balaji S. Srinivasan, angel investor and entrepreneur, also former CTO of Coinbase, tweeted Saturday that a top news organization in China, Caijing, had one of their articles banned by Beijing after it noted Chinese officials were significantly underreporting coronavirus confirmed cases and deaths, especially among the elderly. 

Srinivasan said, “If half the claims in this article are true, #nCoV2019 seems to have completely overloaded Wuhan’s healthcare system. It appears particularly deadly for the elderly. But this 45-year-old had to be anesthetized and intubated in order to breathe.” 

“In the past two days, he had seen a 45-year-old patient, a family of five, his parents had died of the new coronavirus pneumonia, and his son was infected. The patient’s condition was very serious. She used high-flow oxygen inhalation and non-invasive mask ventilation, but her blood oxygen saturation was only 50%. Finally, she had to be anesthetized and intubated with ECMO.

“Before intubation and anesthesia, she watched us prepare, tears kept flowing down, and that fear made people feel very distressed,” said Shen Jun. There are still many cases like this, “Our doctors have made a decision Determined to do everything possible to treat all patients,” Caijing wrote. 

Srinivasan points out that the Chinese newspaper found hospitals in Wuhan and elsewhere were intentionally recording coronavirus deaths as “general pneumonia” to keep the death count low. 

The article also notes test kits for the virus were in low supply, which allowed those who were infected, to continue their daily lives during a 7-10-day incubation period, enabling the virus to spread even more. 

The healthcare system was so overloaded in Wuhan, which forced hospital officials to send the dying home; hospitals didn’t have enough beds to house the sick. 

“Caijing understands that at least five suspected deaths at the hospital have not been diagnosed, so it does not count towards the confirmed deaths. This means that the number of confirmed and fatal cases that people can see at present does not fully reflect the full picture of the epidemic,” the article noted. 

And then there’s this, from SixthTone’s David Paulk: “The 8 people detained in Wuhan for “spreading rumors” — who we wrote about in a Jan. 2 article that was censored — were doctors trying to raise the alarm about a new SARS-like virus.” 

We leave the last word to Zeng Guang, the chief scientist of epidemiology at China’s CDC, who, on Jan. 29 made a rare candid admission about why Chinese officials cannot tell people the truth in an interview with the state-run tabloid Global Times: “The officials need to think about the political angle and social stability in order to keep their positions,” which is all one needs to know about any “facts” coming out of China.  

And to hide the truth, China has decided to burn the evidence: 


Tyler Durden

Sun, 02/02/2020 – 16:45

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Trump’s Expanded Travel Ban Compounds the Wrongs of Previous Versions

On Friday, the Trump administration announced an expansion of its travel ban policy that covers six new nations, which are added to those included in Travel Ban 3.0, announced in September 2017. While there are some differences between the restrictions imposed on citizens of the newly added nations and those of countries previously on the list, the expanded travel ban is still deeply unjust, still targets Muslims, still does nothing to protect national security, and is still likely to harm it at the margin. While courts may well ultimately uphold the policy against legal challenges, that is because of flaws in the Supreme Court’s ruling on the previous travel ban, not because the new one actually deserves to be upheld.

Under the newly expanded policy, nationals of Eritrea, Kyrgyzstan, Myanmar and Nigeria will no longer be allowed to acquire immigration visas. Those of Sudan and Tanzania will no longer be eligible for “diversity” immigration visas (which are normally available to citizens of countries that otherwise generate few immigrants). Unlike the countries included in earlier travel bans, nationals of  countries newly added to list are not subjected to a near-total ban on entry into the United States. Their citizens are still eligible for non-immigrant visas, and those of Sudan and Tanzania can still apply for non-diversity visas.

Despite these differences, the expanded travel ban still inflicts cruel injustices in ways similar to previous versions. It is also similar to previous versions in the ridiculously weak nature of the national security rationale for imposing it.

I. Why the Expanded Travel Ban is Unjust and Counterproductive.

The most obvious consequence of the travel ban expansion is that thousands of people from these countries will be denied the opportunity to live in greater freedom and prosperity than is possible in their poor, corrupt, and sometimes oppressive countries of origin. And they will be denied through no fault of their own, but merely because they made the mistake of being born to the wrong parents or in the wrong place.

Current American citizens with family in the four countries subjected to a total ban on immigrant visas will also suffer because they will be unable to bring in close relatives—including even parents or children—to live with them on a permanent basis. This will predictably lead to gratuitous cruelty similar to that we have already seen under the current travel ban. The suffering may be somewhat lessened because the relatives in question will be eligible to apply for temporary visas. But they will not be able to join their families on a permanent basis.

Americans with no direct personal connections to these countries will suffer in more indirect ways. They will lose out because the US will be denied the economic, social, and cultural contributions made by immigrants from these countries. Nigeria is by far the most populous nation on the new list, and the one that currently sends the most immigrants to the US.  Nigerian immigrants are notable for being among the most successful of any ethnic group in the US, making major contributions to the economy, and attaining education levels well above those of any other group, including native-born whites. Eliminating immigration from Nigeria won’t make America great again. It’ll just make us poorer, and also make us look like ignorant bigots to boot.

The supposed rationale for the expanded travel ban is improving security against terrorism. But, as  Alex Nowrasteh of the Cato Institute explains, the security threat from immigrants from these six nations is already miniscule. From 1975 to 2017, only six deaths in the US are attributable to terrorist attacks  by immigrants from these countries, only one of which might have been prevented had the restrictions imposed by the expanded travel ban been in place throughout this period. Significantly, only one terrorist attack over that entire period (a nonfatal one) was attributable to an immigrant from Nigeria, which  accounts for the lion’s share of the people excluded under the new policy. That rate is lower than the rate of terrorism among native-born Americans. And if terrorism were the real concern, it makes little sense to focus on immigrant visas, since a terrorist can just as easily make use of a tourist or other temporary visa.

Far from improving the security situation, the new policy is likely to make it worse at the margin. This is another trait it shares with its predecessor. Several of the nations on the list are key US allies in the War on Terror, and provide useful intelligence and other cooperation. Nigeria is probably the most significant. The expanded travel ban has already caused predictable outrage in that country, and could easily lead them to curtail cooperation with US anti-terrorism efforts. Sudan recently transitioned from an Islamist dictatorship to a more liberal fledgling democracy. Its inclusion in the travel ban won’t make the US popular there, either, and could easily impair cooperation, as well.

The administration also claims that the new policy is necessary to pressure the six nations into expanding information-sharing about immigrants and visa applicants. But if the threat posed by entrants from these countries is already miniscule, it is hard to see why that information is needed. It’s extremely difficult to achieve reductions in an already miniscule risk. The US government doesn’t suffer from a shortage of useless information in its files. At they very least, the desire to acquire information likely to have little or no value should have been pursued by less draconian means than barring large numbers of immigrants.

Moreover, it is worth noting that a similar information-sharing justification was trotted out to justify the previous travel ban. But, as it turns out, it was not consistently applied, and was almost certainly a pretext for Trump’s real motivation of targeting Muslims. We don’t yet have a comparably detailed analysis of the information-gathering justification for the expanded ban. But it would not be surprising if it were similarly bogus.

The new ban is also similar to its predecessor in targeting Muslims, though to a somewhat lesser degree. The previous travel bans were, of course, a direct outgrowth of Trump’s campaign promise to impose a “Muslim ban.” And even after he shifted to a “territorial” policy of focusing on nations with large Muslim populations, Trump repeatedly tied the latter to his earlier campaign promise, and equated the two. Elsewhere, I have explained why the anti-Muslim focus of the earlier travel bans is not vitiated by the fact that they did not exclude all the Muslims in the world, but “only” some of them (see here and here).

Three of the nations included in the expanded travel ban are majority-Muslim: Nigeria, Kyrgyzstan, and Sudan, though in the case of Nigeria, it is not clear whether Muslims are a majority of about 51% or “merely” a plurality of about 46%. Two others—Tanzania and Eritrea—have large Muslim minorities, of  about 35% and 48%, respectively. Muslims are only a very small percentage of the population in Myanmar, but most belong to the Rohingya ethnic group, which is subject to brutal persecution by the majority population, and is one of the most severely oppressed minority groups in the world. Rohingya can still potentially apply for entry as refugees. But, with the Trump administration’s gutting of refugee quotas, they have little if any chance of success.

The overall anti-Muslim focus of the travel ban focus becomes even clearer when we assess the expansion in combination with the previous version. It then becomes evident that, with the exception of Myanmar, all the nations targeted for meaningful restrictions have Muslim majorities, or very large minorities, and that Muslims are constitute a large majority of the total number of people affected. In this post, I explained why the inclusion of Venezuela and North Korea in Travel Ban 3.0, was not meaningful, because the number of people affected by the new restrictions imposed on those countries was infinitesimally small.

And you don’t have to take my word for the fact that the expanded travel ban isn’t a separate new policy, but rather an expansion of the previous one. You can take that of Donald Trump himself, who recently described it as “adding a couple of countries to [the earlier policy].”

Much of the above could be dismissed as morally irrelevant if you subscribe to the theory that governments have the right to exclude migrants for virtually any reason they want, much like owners of private houses or clubs can exclude would-be entrants. But such theories have serious flaws, for reasons I outlined here, and in greater detail in Chapter 5 of my forthcoming book on freedom of movement.

II. The Expanded Travel Ban May Well Prevail in Court—But Not Because it is Actually Legal.

Despite its many flaws, Trump’s expanded travel ban could well be upheld by the courts against the nearly inevitable legal challenges to it. Co-blogger Josh Blackman, a longtime defender of the legality of the various travel bans, is probably right about that. Where he goes wrong is in thinking that this state of affairs should be celebrated rather than lamented.

For reasons already discussed above, the new policy and the old are a unified whole, and that unified whole has a clearly anti-Muslim focus. Not merely because the vast majority of the people excluded are Muslims, but because that disproportionate effect is the likely motive for the president’s actions. In most areas of policy, a seemingly neutral government action that is so clearly intended to discriminate against a specific religious minority would be presumptively unconstitutional. Indeed, the same justices who upheld Travel Ban 3.0 ruled against the government in a case with weaker evidence of discriminatory motivation just a few weeks earlier, in the Masterpiece Cakeshop decision. And the extreme weakness of the security rationale for the travel ban would doom the government’s efforts to claim the policy should be upheld because it would have been enacted anyway, for legitimate reasons.

In Trump v. Hawaii, the court nonetheless upheld the travel ban on the basis that immigration policy is exempt from most normal judicial protection against violations of the Bill of Rights. For reasons I have covered previously (e.g. here and here), that ruling is at odds with the text and original meaning of the Constitution, and has other flaws, as well. But it is no the books, and will make it very difficult, at best, to challenge the expanded travel ban based on discriminatory motivation. But the expanded travel ban should remind us of the severe flaws in the earlier travel ban ruling, and the need to get it overruled.

The expanded travel ban also highlights a second flaw in Trump v. Hawaii, one less familiar to nonexperts. The Court ruled that the president was authorized to impose the travel ban based on 8 USC Section 1182, which gives him the power to bar entry into the US by any foreign national whom he deems to “detrimental to the interests of the United States.” In so doing, Chief Justice John Roberts’ majority opinion brushed off any possible conflict with 8 U.S.C. Section 1152(a), which bars discrimination on the basis of nationality in the issuance of immigration visas, by reasoning the issuing a visa is not the same thing as denying entry. However, this ignores the whole point of a visa, which is precisely to create a right to enter the United States. A visa is not a document that has any other value; no one gets them for simply clerical or decorative purposes; you can’t wallpaper your house with them! Normally, Section 1152 would supersede 1182 whenever the two conflict, because it was enacted in 1965—thirteen years after 1182 was adopted.

Under Roberts’ reasoning, Section 1182 becomes a near-blank check for the president to exclude almost any would-be entrant he wants, for almost any reason. That makes it an extraordinarily broad delegation of legislative power to the executive. Justice Gorsuch and other conservatives (rightly, in my view) concerned about the need to enforce non-delegation constraints on executive power would do well to focus on this case, and also on the equally egregious delegation of power to impose tariffs on foreign goods.  If these are not examples of unconstitutionally broad delegation, it is hard to imagine what would be. And, if conservatives contend that trade and immigration are somehow arbitrarily exempt from nondelegation principles that should apply everywhere else, then they can hardly claim that nondelegation is a meaningful, neutral rule of constitutional law.

Josh Blackman may be right to conclude that the expanded travel ban portends a massive expansion of new travel bans imposed at the whim of the executive, should Trump be reelected (or should a like-minded president come to power in the future). But that’s yet another reason to condemn Trump v. Hawaii—and to look for ways to get it overruled or at least narrowed in scope by applying nondelegation principles.

The legal and political battle over the expanded travel ban is just beginning. It is possible someone will find a legal vulnerability I have not thought of. For the moment, however, the prospects for a successful legal challenge do not look good. But that does not change the reality that the new policy is unjust, counterproductive, and at odds with a sound understanding of the Constitution.

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Trump’s Expanded Travel Ban Compounds the Wrongs of Previous Versions

On Friday, the Trump administration announced an expansion of its travel ban policy that covers six new nations, which are added to those included in Travel Ban 3.0, announced in September 2017. While there are some differences between the restrictions imposed on citizens of the newly added nations and those of countries previously on the list, the expanded travel ban is still deeply unjust, still targets Muslims, still does nothing to protect national security, and is still likely to harm it at the margin. While courts may well ultimately uphold the policy against legal challenges, that is because of flaws in the Supreme Court’s ruling on the previous travel ban, not because the new one actually deserves to be upheld.

Under the newly expanded policy, nationals of Eritrea, Kyrgyzstan, Myanmar and Nigeria will no longer be allowed to acquire immigration visas. Those of Sudan and Tanzania will no longer be eligible for “diversity” immigration visas (which are normally available to citizens of countries that otherwise generate few immigrants). Unlike the countries included in earlier travel bans, nationals of  countries newly added to list are not subjected to a near-total ban on entry into the United States. Their citizens are still eligible for non-immigrant visas, and those of Sudan and Tanzania can still apply for non-diversity visas.

Despite these differences, the expanded travel ban still inflicts cruel injustices in ways similar to previous versions. It is also similar to previous versions in the ridiculously weak nature of the national security rationale for imposing it.

I. Why the Expanded Travel Ban is Unjust and Counterproductive.

The most obvious consequence of the travel ban expansion is that thousands of people from these countries will be denied the opportunity to live in greater freedom and prosperity than is possible in their poor, corrupt, and sometimes oppressive countries of origin. And they will be denied through no fault of their own, but merely because they made the mistake of being born to the wrong parents or in the wrong place.

Current American citizens with family in the four countries subjected to a total ban on immigrant visas will also suffer because they will be unable to bring in close relatives—including even parents or children—to live with them on a permanent basis. This will predictably lead to gratuitous cruelty similar to that we have already seen under the current travel ban. The suffering may be somewhat lessened because the relatives in question will be eligible to apply for temporary visas. But they will not be able to join their families on a permanent basis.

Americans with no direct personal connections to these countries will suffer in more indirect ways. They will lose out because the US will be denied the economic, social, and cultural contributions made by immigrants from these countries. Nigeria is by far the most populous nation on the new list, and the one that currently sends the most immigrants to the US.  Nigerian immigrants are notable for being among the most successful of any ethnic group in the US, making major contributions to the economy, and attaining education levels well above those of any other group, including native-born whites. Eliminating immigration from Nigeria won’t make America great again. It’ll just make us poorer, and also make us look like ignorant bigots to boot.

The supposed rationale for the expanded travel ban is improving security against terrorism. But, as  Alex Nowrasteh of the Cato Institute explains, the security threat from immigrants from these six nations is already miniscule. From 1975 to 2017, only six deaths in the US are attributable to terrorist attacks  by immigrants from these countries, only one of which might have been prevented had the restrictions imposed by the expanded travel ban been in place throughout this period. Significantly, only one terrorist attack over that entire period (a nonfatal one) was attributable to an immigrant from Nigeria, which  accounts for the lion’s share of the people excluded under the new policy. That rate is lower than the rate of terrorism among native-born Americans. And if terrorism were the real concern, it makes little sense to focus on immigrant visas, since a terrorist can just as easily make use of a tourist or other temporary visa.

Far from improving the security situation, the new policy is likely to make it worse at the margin. This is another trait it shares with its predecessor. Several of the nations on the list are key US allies in the War on Terror, and provide useful intelligence and other cooperation. Nigeria is probably the most significant. The expanded travel ban has already caused predictable outrage in that country, and could easily lead them to curtail cooperation with US anti-terrorism efforts. Sudan recently transitioned from an Islamist dictatorship to a more liberal fledgling democracy. Its inclusion in the travel ban won’t make the US popular there, either, and could easily impair cooperation, as well.

The administration also claims that the new policy is necessary to pressure the six nations into expanding information-sharing about immigrants and visa applicants. But if the threat posed by entrants from these countries is already miniscule, it is hard to see why that information is needed. It’s extremely difficult to achieve reductions in an already miniscule risk. The US government doesn’t suffer from a shortage of useless information in its files. At they very least, the desire to acquire information likely to have little or no value should have been pursued by less draconian means than barring large numbers of immigrants.

Moreover, it is worth noting that a similar information-sharing justification was trotted out to justify the previous travel ban. But, as it turns out, it was not consistently applied, and was almost certainly a pretext for Trump’s real motivation of targeting Muslims. We don’t yet have a comparably detailed analysis of the information-gathering justification for the expanded ban. But it would not be surprising if it were similarly bogus.

The new ban is also similar to its predecessor in targeting Muslims, though to a somewhat lesser degree. The previous travel bans were, of course, a direct outgrowth of Trump’s campaign promise to impose a “Muslim ban.” And even after he shifted to a “territorial” policy of focusing on nations with large Muslim populations, Trump repeatedly tied the latter to his earlier campaign promise, and equated the two. Elsewhere, I have explained why the anti-Muslim focus of the earlier travel bans is not vitiated by the fact that they did not exclude all the Muslims in the world, but “only” some of them (see here and here).

Three of the nations included in the expanded travel ban are majority-Muslim: Nigeria, Kyrgyzstan, and Sudan, though in the case of Nigeria, it is not clear whether Muslims are a majority of about 51% or “merely” a plurality of about 46%. Two others—Tanzania and Eritrea—have large Muslim minorities, of  about 35% and 48%, respectively. Muslims are only a very small percentage of the population in Myanmar, but most belong to the Rohingya ethnic group, which is subject to brutal persecution by the majority population, and is one of the most severely oppressed minority groups in the world. Rohingya can still potentially apply for entry as refugees. But, with the Trump administration’s gutting of refugee quotas, they have little if any chance of success.

The overall anti-Muslim focus of the travel ban focus becomes even clearer when we assess the expansion in combination with the previous version. It then becomes evident that, with the exception of Myanmar, all the nations targeted for meaningful restrictions have Muslim majorities, or very large minorities, and that Muslims are constitute a large majority of the total number of people affected. In this post, I explained why the inclusion of Venezuela and North Korea in Travel Ban 3.0, was not meaningful, because the number of people affected by the new restrictions imposed on those countries was infinitesimally small.

And you don’t have to take my word for the fact that the expanded travel ban isn’t a separate new policy, but rather an expansion of the previous one. You can take that of Donald Trump himself, who recently described it as “adding a couple of countries to [the earlier policy].”

Much of the above could be dismissed as morally irrelevant if you subscribe to the theory that governments have the right to exclude migrants for virtually any reason they want, much like owners of private houses or clubs can exclude would-be entrants. But such theories have serious flaws, for reasons I outlined here, and in greater detail in Chapter 5 of my forthcoming book on freedom of movement.

II. The Expanded Travel Ban May Well Prevail in Court—But Only Because of Grave Flaws in the Court’s Ruling in Trump v. Hawaii.

Despite its many flaws, Trump’s expanded travel ban could well be upheld by the courts against the nearly inevitable legal challenges to it. Co-blogger Josh Blackman, a longtime defender of the legality of the various travel bans, is probably right about that. Where he goes wrong is in thinking that this state of affairs should be celebrated rather than lamented.

For reasons already discussed above, the new policy and the old are a unified whole, and that unified whole has a clearly anti-Muslim focus. Not merely because the vast majority of the people excluded are Muslims, but because that disproportionate effect is the likely motive for the president’s actions. In most areas of policy, a seemingly neutral government action that is so clearly intended to discriminate against a specific religious minority would be presumptively unconstitutional. Indeed, the same justices who upheld Travel Ban 3.0 ruled against the government in a case with weaker evidence of discriminatory motivation just a few weeks earlier, in the Masterpiece Cakeshop decision. And the extreme weakness of the security rationale for the travel ban would doom the government’s efforts to claim the policy should be upheld because it would have been enacted anyway, for legitimate reasons.

In Trump v. Hawaii, the court nonetheless upheld the travel ban on the basis that immigration policy is exempt from most normal judicial protection against violations of the Bill of Rights. For reasons I have covered previously (e.g. here and here), that ruling is at odds with the text and original meaning of the Constitution, and has other flaws, as well. But it is no the books, and will make it very difficult, at best, to challenge the expanded travel ban based on discriminatory motivation. But the expanded travel ban should remind us of the severe flaws in the earlier travel ban ruling, and the need to get it overruled.

The expanded travel ban also highlights a second flaw in Trump v. Hawaii, one less familiar to nonexperts. The Court ruled that the president was authorized to impose the travel ban based on 8 USC Section 1182, which gives him the power to bar entry into the US by any foreign national whom he deems to “detrimental to the interests of the United States.” In so doing, Chief Justice John Roberts’ majority opinion brushed off any possible conflict with 8 U.S.C. Section 1152(a), which bars discrimination on the basis of nationality in the issuance of immigration visas, by reasoning that issuing a visa is not the same thing as denying entry. However, this ignores the whole point of a visa, which is precisely to create a right to enter the United States. A visa is not a document that has any other value; no one gets them for simply clerical or decorative purposes; you can’t wallpaper your house with them! Normally, Section 1152 would supersede 1182 whenever the two conflict, because it was enacted in 1965—thirteen years after 1182 was adopted.

If not for this part of the Court’s ruling, the expanded travel ban—and major parts of Travel Ban 3.0—would be clearly illegal. Both undeniably discriminate on the basis of nationality in issuing immigration visas.

Under Roberts’ reasoning, Section 1182 becomes a near-blank check for the president to exclude almost any would-be entrant he wants, for almost any reason. That makes it an extraordinarily broad delegation of legislative power to the executive. Justice Gorsuch and other conservatives (rightly, in my view) concerned about the need to enforce non-delegation constraints on executive power would do well to focus on this case, and also on the equally egregious delegation of power to impose tariffs on foreign goods.  If these are not examples of unconstitutionally broad delegation, it is hard to imagine what would be. And, if conservatives contend that trade and immigration are somehow arbitrarily exempt from nondelegation principles that should apply everywhere else, then they can hardly claim that nondelegation is a meaningful, neutral rule of constitutional law.

Josh Blackman may be right to conclude that the expanded travel ban portends a massive expansion of new travel bans imposed at the whim of the executive, should Trump be reelected (or should a like-minded president come to power in the future). But that’s yet another reason to condemn Trump v. Hawaii—and to look for ways to get it overruled or at least narrowed in scope by applying nondelegation principles.

The legal and political battle over the expanded travel ban is just beginning. It is possible someone will find a legal vulnerability I have not thought of. For the moment, however, the prospects for a successful legal challenge do not look good. But that does not change the reality that the new policy is unjust, counterproductive, and at odds with a sound understanding of the Constitution.

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