The Washington Supreme Court Just Decriminalized Simple Drug Possession. Legislators Shouldn’t ‘Fix’ the Overturned Law.

Sheryl-Gordon-McCloud-Wikimedia

The Washington Supreme Court effectively decriminalized simple drug possession in that state last week by overturning a law that made possession a felony without any evidence of intent or knowledge. In an opinion issued on Thursday, the court concluded that the absence of a mens rea (“guilty mind”) requirement violated the right to due process. As a result of that decision, Washington police have stopped arresting people for simple possession, while prosecutors are dropping pending cases and seeking orders vacating past convictions under the law.

The case involved a Spokane woman named Shannon Blake, who was arrested in 2016 during a vehicle theft investigation. A corrections officer at the jail found a small plastic bag of methamphetamine in the coin pocket of Blake’s secondhand jeans, which a friend had given her two days before. Blake said she did not use meth and had no idea she was carrying it. But under Washington law, she was still guilty of possessing a controlled substance, a felony punishable by up to five years in prison and a $10,000 fine.

Washington was the only state that criminalized innocent, unknowing possession of illegal drugs. The Washington Supreme Court has repeatedly held that the statute under which Blake was convicted does not require evidence of knowledge or intent. “If the legislature had intended guilty knowledge or intent to be an element of the crime of simple possession of a controlled substance,” the court ruled in 1981, “it would have put the requirement in the act.” Twenty-three years later, the court reiterated that the legislature had made drug possession a strict liability crime.

Despite that well-established understanding of the law, the court had never before addressed the question of whether the omission of a mens rea element made the law unconstitutional. But in their decision overturning Blake’s conviction, Justice Sheryl Gordon McCloud and four of her colleagues ruled that “the state legislature’s exercise of its otherwise plenary police power to criminalize entirely passive and innocent nonconduct with no mens rea or guilty mind violates the due process clause of the state and federal constitutions.”

Writing in dissent, Justice Debra Stephens said the court could have fixed the problem by reading a mens rea requirement into the statute. But in the majority’s view, the court’s longstanding decisions that declined to do so, combined with the legislature’s failure to change the statute in light of those rulings, foreclosed that option. “We have overwhelming evidence that the legislature intends the simple possession statute to penalize innocent nonconduct,” it said, “and we have overwhelming legal authority that this violates the due process clauses of the state and federal constitutions.”

In response to the decision, the Seattle Police Department announced that “officers will no longer detain [or] arrest individuals” for simple possession. Spokane Police Chief Craig Meidl likewise said “we will still seize [controlled substances] as contraband, but there will not be any criminal sanctions.” The Washington Association of Sheriffs & Police Chiefs told its members that “law enforcement officers are no longer authorized to conduct a criminal investigation, effect an arrest, seek a search warrant or take any other law enforcement action for simple possession of controlled substances.”

The Associated Press reports that the Washington Association of Prosecuting Attorneys “instructed its members to immediately drop any pending cases for simple drug possession, to obtain orders vacating the convictions of anyone doing time for simple drug possession, and to recall any arrest warrants issued in such cases.” The article adds that “people who were subject to forfeiture cases could seek redress for the loss of their property.”

The state legislature can—and probably will—recriminalize simple possession by amending the statute to include a mens rea element. A bill introduced by state Sen. Steven Hobbs (D–Lake Stevens) would add the word knowingly to the provision making it “unlawful for any person to possess a controlled substance” without a prescription. “Right now, you can have controlled substances and not get arrested,” Hobbs told KOMO News on Friday. “It’s kind of crazy. I know several states have gone through this very problem before and now it’s our turn, and we have to fix it right away.”

A bill narrowly approved by the House Public Safety Committee on February 15 offers an alternative: Like a ballot initiative that Oregon voters passed in November, the Pathways to Recovery Act would eliminate criminal penalties for possessing “personal use amounts” of drugs while expanding addiction treatment services. The bill envisions a program of “peer-driven, noncoercive outreach and engagement” for people with drug problems.

As it stands, Oregon and Washington are the only states where drug use is not treated as a crime. Rep. Lauren Davis (D–Shoreline), the main sponsor of the Pathways to Recovery Act, thinks drug use should instead be treated as a disease. “It is imperative that we stop handing down felony possession convictions that compound shame and create barriers to recovery,” she told Marijuana Moment. “We must stop criminalizing symptoms of a treatable brain disease.” Her bill likewise says “substance use disorder is among the only health conditions for which a person can be arrested for displaying symptoms.”

This view mistakenly describes a pattern of behavior as a brain disease. As Davis’ bill notes, people choose to take drugs for identifiable reasons. For example, “People use drugs to escape the painful reality of their lives and circumstances, including trauma that has never had a chance to heal.” Characterizing those decisions as the product of a disease denies the autonomy and moral agency of drug users, implying that their choices not only do not matter but, strictly speaking, do not even exist.

Although Davis, to her credit, favors a “noncoercive” approach to addiction, many other politicians, including President Joe Biden, think drug users should be forced into treatment under the threat of incarceration, then locked in “rehab centers” rather than jails or prisons. They counterintuitively present that policy as an enlightened and humane alternative to criminalization.

The focus on addiction as a brain disease also ignores the experiences of most drug users, who neither want nor need the “help” that Biden would like to foist upon them. The injustice of our drug laws should be clear from the simple fact that they authorize the arrest and imprisonment of people for peaceful conduct that violates no one’s rights. That policy is morally abhorrent regardless of whether its victims qualify for a diagnosis of “substance use disorder.”

Sen. Hobbs thinks “it’s kind of crazy” that people cannot be arrested and locked in a cage for possessing an arbitrarily proscribed intoxicant. To the contrary, it’s the policy Hobbs supports that is manifestly irrational.

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The Washington Supreme Court Just Decriminalized Simple Drug Possession. Legislators Shouldn’t ‘Fix’ the Overturned Law.

Sheryl-Gordon-McCloud-Wikimedia

The Washington Supreme Court effectively decriminalized simple drug possession in that state last week by overturning a law that made possession a felony without any evidence of intent or knowledge. In an opinion issued on Thursday, the court concluded that the absence of a mens rea (“guilty mind”) requirement violated the right to due process. As a result of that decision, Washington police have stopped arresting people for simple possession, while prosecutors are dropping pending cases and seeking orders vacating past convictions under the law.

The case involved a Spokane woman named Shannon Blake, who was arrested in 2016 during a vehicle theft investigation. A corrections officer at the jail found a small plastic bag of methamphetamine in the coin pocket of Blake’s secondhand jeans, which a friend had given her two days before. Blake said she did not use meth and had no idea she was carrying it. But under Washington law, she was still guilty of possessing a controlled substance, a felony punishable by up to five years in prison and a $10,000 fine.

Washington was the only state that criminalized innocent, unknowing possession of illegal drugs. The Washington Supreme Court has repeatedly held that the statute under which Blake was convicted does not require evidence of knowledge or intent. “If the legislature had intended guilty knowledge or intent to be an element of the crime of simple possession of a controlled substance,” the court ruled in 1981, “it would have put the requirement in the act.” Twenty-three years later, the court reiterated that the legislature had made drug possession a strict liability crime.

Despite that well-established understanding of the law, the court had never before addressed the question of whether the omission of a mens rea element made the law unconstitutional. But in their decision overturning Blake’s conviction, Justice Sheryl Gordon McCloud and four of her colleagues ruled that “the state legislature’s exercise of its otherwise plenary police power to criminalize entirely passive and innocent nonconduct with no mens rea or guilty mind violates the due process clause of the state and federal constitutions.”

Writing in dissent, Justice Debra Stephens said the court could have fixed the problem by reading a mens rea requirement into the statute. But in the majority’s view, the court’s longstanding decisions that declined to do so, combined with the legislature’s failure to change the statute in light of those rulings, foreclosed that option. “We have overwhelming evidence that the legislature intends the simple possession statute to penalize innocent nonconduct,” it said, “and we have overwhelming legal authority that this violates the due process clauses of the state and federal constitutions.”

In response to the decision, the Seattle Police Department announced that “officers will no longer detain [or] arrest individuals” for simple possession. Spokane Police Chief Craig Meidl likewise said “we will still seize [controlled substances] as contraband, but there will not be any criminal sanctions.” The Washington Association of Sheriffs & Police Chiefs told its members that “law enforcement officers are no longer authorized to conduct a criminal investigation, effect an arrest, seek a search warrant or take any other law enforcement action for simple possession of controlled substances.”

The Associated Press reports that the Washington Association of Prosecuting Attorneys “instructed its members to immediately drop any pending cases for simple drug possession, to obtain orders vacating the convictions of anyone doing time for simple drug possession, and to recall any arrest warrants issued in such cases.” The article adds that “people who were subject to forfeiture cases could seek redress for the loss of their property.”

The state legislature can—and probably will—recriminalize simple possession by amending the statute to include a mens rea element. A bill introduced by state Sen. Steven Hobbs (D–Lake Stevens) would add the word knowingly to the provision making it “unlawful for any person to possess a controlled substance” without a prescription. “Right now, you can have controlled substances and not get arrested,” Hobbs told KOMO News on Friday. “It’s kind of crazy. I know several states have gone through this very problem before and now it’s our turn, and we have to fix it right away.”

A bill narrowly approved by the House Public Safety Committee on February 15 offers an alternative: Like a ballot initiative that Oregon voters passed in November, the Pathways to Recovery Act would eliminate criminal penalties for possessing “personal use amounts” of drugs while expanding addiction treatment services. The bill envisions a program of “peer-driven, noncoercive outreach and engagement” for people with drug problems.

As it stands, Oregon and Washington are the only states where drug use is not treated as a crime. Rep. Lauren Davis (D–Shoreline), the main sponsor of the Pathways to Recovery Act, thinks drug use should instead be treated as a disease. “It is imperative that we stop handing down felony possession convictions that compound shame and create barriers to recovery,” she told Marijuana Moment. “We must stop criminalizing symptoms of a treatable brain disease.” Her bill likewise says “substance use disorder is among the only health conditions for which a person can be arrested for displaying symptoms.”

This view mistakenly describes a pattern of behavior as a brain disease. As Davis’ bill notes, people choose to take drugs for identifiable reasons. For example, “People use drugs to escape the painful reality of their lives and circumstances, including trauma that has never had a chance to heal.” Characterizing those decisions as the product of a disease denies the autonomy and moral agency of drug users, implying that their choices not only do not matter but, strictly speaking, do not even exist.

Although Davis, to her credit, favors a “noncoercive” approach to addiction, many other politicians, including President Joe Biden, think drug users should be forced into treatment under the threat of incarceration, then locked in “rehab centers” rather than jails or prisons. They counterintuitively present that policy as an enlightened and humane alternative to criminalization.

The focus on addiction as a brain disease also ignores the experiences of most drug users, who neither want nor need the “help” that Biden would like to foist upon them. The injustice of our drug laws should be clear from the simple fact that they authorize the arrest and imprisonment of people for peaceful conduct that violates no one’s rights. That policy is morally abhorrent regardless of whether its victims qualify for a diagnosis of “substance use disorder.”

Sen. Hobbs thinks “it’s kind of crazy” that people cannot be arrested and locked in a cage for possessing an arbitrarily proscribed intoxicant. To the contrary, it’s the policy Hobbs supports that is manifestly irrational.

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Oil Plunges Below $60 After Brazil-Variant Virus Headlines

Oil Plunges Below $60 After Brazil-Variant Virus Headlines

WTI has suddenly crashed from a strong overnight open up to $63, down to below $60 this morning.

While the catalyst is unclear, a number of market participants are pointing to a story in The Financial Times that warns the Brazil-variant of the virus has been found to evade natural immunity.

The P. 1 Covid-19 variant that originated in Brazil and has spread to more than 25 countries is around twice as transmissible as some other strains and is more likely to evade the natural immunity people usually develop from prior infection, according to a new international study.

It was also “able to evade 25-61 per cent of protective immunity elicited by previous infection” with any earlier variant, the researchers found, in a sign that current vaccines could also be less effective against it.

Those headlines do not fit well with the ‘almost back to normal’ narrative being pumped around the world, which was shaken this morning as China’s factory activity growth slipped to a nine-month low in February, sounding alarms over Chinese crude buying

“One negative is more and more talk about Chinese oil demand maybe faltering, that they bought all the oil that they’re going to need for a while,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

“There’s some talk that their strategic reserves are filled up, and so some people are betting against the Chinese continuing to drive oil prices.”

OPEC+ meet on Thursday and could discuss allowing as much as 1.5 million barrels per day of crude back into the market. ING analysts said OPEC+ needs to avoid surprising traders by releasing too much supply.

“There is a large amount of speculative money in oil at the moment, so they will want to avoid any action that will see (those investors) running for the exit,” the analysts said.

The big question is, will this be enough to reverse the momentum as we warned yesterday that CTAs had gone “all-in” on oil

 

Get ready for the next round of lockdowns and the next leg down in demand expectations.

Tyler Durden
Mon, 03/01/2021 – 13:20

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Goldman Restarts Cryptocurrency Trading Desk

Goldman Restarts Cryptocurrency Trading Desk

2018 was not a good year for bitcoin, and for cryptos in general: after hitting an all time high in December of 2017, much of the remainder of 2018 was spent with the crypto bubble deflating, with early crypto investors first casually than fervently taking profits and dragging the price of cryptos ever lower. The punchline came in September, when as we reported at the time Goldman – clearly disappointed with the lack of upside momentum – suspended its fledgling crypto trading desk plans

… sending bitcoin tumbling back below $7000.

Well, fast forward a little over two years forward when following the 7-fold increase in the price of bitcoin since Goldman’s cowardly exit, the bank – which has lost some of its top executives in recent weeks – has made a less than triumphant return and according to Reuters, has restarted its cryptocurrency trading desk and will begin dealing bitcoin futures and non-deliverable forwards for clients from next week.

As before, the team will sit within the U.S. bank’s Global Markets division, the Reuters source said, which means that while Goldman is putting on one trade for its prop traders, it will be using its flow desk to have clients to the opposite.

The desk is part of Goldman’s activities within the fast-growing digital assets sector, which also includes projects involving blockchain technology and central bank digital currencies, the person said.

Reuters adds that as part of this renewed bitcoin trading effort, the bank is also exploring the potential for a bitcoin exchange traded fund and has issued a request for information to explore digital asset custody.  The trading desk reboot comes amid growing interest by institutions in bitcoin, which has exploded more than 470% over the past year, outperforming any asset class pitched by Goldman’s research desk.

Of course, the real reason why Goldman is interested in getting back to bitcoin is due to its wild volatility, which while painful for holders is extremely valuable for prop traders, and makes both the underlying token and related derivatives attractive for investors willing to take riskier long or short positions as they hunt for yield in a record-low interest rate environment.

As Reuters reminds us, since the first unsuccessful attempt by Goldman to launch a trading desk in 2018, market infrastructure for bitcoin and other large cryptocurrencies has significantly matured, with many established financial institutions offering products and services, including CME Group Inc, Intercontinental Exchange Inc and Fidelity. The developments have helped to attract more mainstream companies to the sector, ranging from those offering crypto services to retail or institutional investors, to companies opting to hold bitcoin on their balance sheets

Last month, Tesla said it had bought $1.5 billion worth of bitcoin, while Bank of New York Mellon Corp said it had formed a new unit to help clients hold and transfer digital assets.

Then, on Monday morning, hedge-fund billionaire Dan Loeb took to Twitter to share his thoughts on the subject. “I’ve been doing a deep dive into crypto lately,” he said. “It is a real test of being intellectually open to new and controversial ideas.”

Loeb’s comments were in response to a blog post titled “NFTs and a Thousand True Fans” by Chris Dixon, a general partner at the venture-capital firm Andreessen Horowitz. In Dixon’s post, he expounds upon the role that non-fungible tokens will have on digital creators.

Meanwhile, crypto continued to win over the world’s biggest financial institutions. As reported earlier, Citigroup laid out a case for Bitcoin to play a bigger role in the global financial system, saying it could become “the currency of choice for international trade” in the years ahead.

Bitcoin was 8.4% at just over $49,000 on Monday, despite the latest attempt by the NY Attorney General to spark a selloff: New York’s top law enforcement officer issued a scathing statement on the market and warned consumers about its susceptibility to “speculative bubbles” and abuse by criminals. “Cryptocurrencies are high-risk, unstable investments that could result in devastating losses just as quickly as they can provide gains,” Attorney General Letitia James said Monday in an investor alert.

Well, of course they are, and it’s because of their massive risk that they provide just as massive returns, something which has not been lost on all those who held on to the token for the past several years and are now extremely rich thanks to it.

Tyler Durden
Mon, 03/01/2021 – 13:00

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$7 Billion Fund Unravels As “Emperor Of Supply-Chain Finance” Has No Clothes

$7 Billion Fund Unravels As “Emperor Of Supply-Chain Finance” Has No Clothes

Less than a month ago, Lex Greensill was heralded as “the king of supply-chain finance”

London-based Greensill Capital was heralded for apparently revamping the humdrum business of supply-chain finance, a kind of lending that speeds up payments between companies. Bloomberg reported in early Feb that the 44-year-old financier says the firm provided $150 billion to businesses and customers in 175 countries last year.

However, in what is now a prophetic warnings, Bloomberg noted that some view him as an aggressive risk taker who’s often pushing the boundaries in an area of finance less regulated than traditional banking, noting that Greensill Capital has been embroiled in scandals involving some of the biggest names in global finance.

Loans it helped to arrange were the focus of conflict-of-­interest accusations last year involving Credit Suisse Group AG and Masayoshi Son’s SoftBank Group Corp, and the firm was at the center of a 2018 crisis at Swiss asset manager GAM Holding AG that brought down a star trader.

We’re doing things a little different to what’s been done before, and that’s always going to kind of garner attention and commentary,” Greensill says from his home in northwest England.

“I recognize by doing that, it does from time to time make us a target.”

Fast forward three weeks to this morning and the ‘king of supply chain finance’ appears to have no clothes…

Bloomberg reported this morning that Greensill’s empire was unraveling fast as two major backers had abandoned the firm:

Credit Suisse Group AG on Monday froze a group of supply-chain-finance funds that it ran with help of the financier.

The funds combined held about $10 billion in assets, most of it in Greensill-sourced securities.

Separately, SoftBank Group Corp.’s Vision Fund has substantially written down its $1.5 billion holding in Greensill Capital, and is considering dropping the valuation to close to zero, according to people familiar with the matter.

The writedown occurred at the end of last year, said one person.

Specifically, a part of the funds is “currently subject to considerable uncertainties with respect to their accurate valuation,” according to a notice the bank sent to investors.

“Greensill acknowledges the decision by Credit Suisse to temporarily gate the two Supply Chain Finance Funds dealing in Greensill-sourced assets,” a spokesperson for the firm said by email.

“We remain in advanced talks with potential outside investors in our company and hope to be able to update further on that process imminently.”

The Wall Street Journal reported Sunday that the bank was concerned about Greensill’s exposure to a single client, U.K.-based steel magnate Sanjeev Gupta, according to people familiar with the matter.

 

Germany’s finance watchdog is examining whether a Bremen-based bank Greensill bought in 2014 was tied too closely to Gupta’s GFG Alliance Ltd., according to people familiar with the matter who asked not to be identified because they weren’t authorized to talk.

Loans to Gupta made up about two-thirds of the bank’s assets in 2019.

Greensill won’t say whether the Federal Financial Supervisory Authority is investigating, and BaFin, as it’s known, declined to comment.

A few short hours after these headlines on Greensill losing big backers, The Wall Street Journal is now reporting that the company is in talks with private-equity giant Apollo Global Management to sell its operating business for around $100 million, according to people familiar with the talks.

For context, in October, the firm had been considering a capital raising that would have valued it at $7 billion.

Greensill’s apparently dismal dive into illiquid assets (and liabilities) follows the fall of infamous U.K. stock picker Neil Woodford in 2019 who ploughed large amounts into unlisted or thinly-traded companies and was forced to freeze his funds to allow for an orderly liquidation. H20 Asset Management also had to freeze funds under pressure from the French regulator because of illiquid investments tied to German financier Lars Windhorst.

When will The Fed start buying all this extremely illiquid crap on to its (the US taxpayers) balance sheet? Somebody do something!

Tyler Durden
Mon, 03/01/2021 – 12:39

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Poetry Monday!: “Rules and Regulations” by Lewis Carroll

Here’s “Rules and Regulations” (1845) by Lewis Carroll (1832-1898), which the young Charles Lutwidge Dogson wrote at age 13 for his younger brother and sister:

A short direction
To avoid dejection,
By variations
In occupations,
And prolongation
Of relaxation,
And combinations
Of recreations,
And disputation
On the state of the nation
In adaptation
To your station,
By invitations
To friends and relations,
By evitation
Of amputation,
By permutation
In conversation,
And deep reflection
You’ll avoid dejection….

For the rest of my “Sasha Reads” playlist, click here. Past poems are:

  1. “Ulysses” by Alfred, Lord Tennyson
  2. “The Pulley” by George Herbert
  3. “Harmonie du soir” (“Evening Harmony”) by Charles Baudelaire
  4. “Dirge Without Music” by Edna St. Vincent Millay
  5. “Clancy of the Overflow” by A.B. “Banjo” Paterson
  6. “Лотова жена” (“Lotova zhena”, “Lot’s wife”) by Anna Akhmatova
  7. “The Jumblies” by Edward Lear
  8. “The Conqueror Worm” by Edgar Allan Poe
  9. “Les Djinns” (“The Jinns”) by Victor Hugo
  10. “I Have a Rendezvous with Death” by Alan Seeger
  11. “When I Was One-and-Twenty” by A.E. Housman
  12. “Узник” (“Uznik”, “The Prisoner” or “The Captive”) by Aleksandr Pushkin
  13. “God’s Grandeur” by Gerard Manley Hopkins
  14. “The Song of Wandering Aengus” by William Butler Yeats
  15. “Je crains pas ça tellment” (“I’m not that scard about”) by Raymond Queneau
  16. “The Naming of Cats” by T.S. Eliot
  17. “The reticent volcano keeps…” by Emily Dickinson
  18. “Она” (“Ona”, “She”) by Zinaida Gippius
  19. “Would I Be Shrived?” by John D. Swain
  20. “Evolution” by Langdon Smith
  21. “Chanson d’automne” by Oscar Milosz
  22. “love is more thicker than forget” by e.e. cummings
  23. “My Three Loves” by Henry S. Leigh
  24. “Я мечтою ловил уходящие тени” (“Ia mechtoiu lovil ukhodiashchie teni”, “With my dreams I caught the departing shadows”) by Konstantin Balmont
  25. “Dane-geld” by Rudyard Kipling

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Poetry Monday!: “Rules and Regulations” by Lewis Carroll

Here’s “Rules and Regulations” (1845) by Lewis Carroll (1832-1898), which the young Charles Lutwidge Dogson wrote at age 13 for his younger brother and sister:

A short direction
To avoid dejection,
By variations
In occupations,
And prolongation
Of relaxation,
And combinations
Of recreations,
And disputation
On the state of the nation
In adaptation
To your station,
By invitations
To friends and relations,
By evitation
Of amputation,
By permutation
In conversation,
And deep reflection
You’ll avoid dejection….

For the rest of my “Sasha Reads” playlist, click here. Past poems are:

  1. “Ulysses” by Alfred, Lord Tennyson
  2. “The Pulley” by George Herbert
  3. “Harmonie du soir” (“Evening Harmony”) by Charles Baudelaire
  4. “Dirge Without Music” by Edna St. Vincent Millay
  5. “Clancy of the Overflow” by A.B. “Banjo” Paterson
  6. “Лотова жена” (“Lotova zhena”, “Lot’s wife”) by Anna Akhmatova
  7. “The Jumblies” by Edward Lear
  8. “The Conqueror Worm” by Edgar Allan Poe
  9. “Les Djinns” (“The Jinns”) by Victor Hugo
  10. “I Have a Rendezvous with Death” by Alan Seeger
  11. “When I Was One-and-Twenty” by A.E. Housman
  12. “Узник” (“Uznik”, “The Prisoner” or “The Captive”) by Aleksandr Pushkin
  13. “God’s Grandeur” by Gerard Manley Hopkins
  14. “The Song of Wandering Aengus” by William Butler Yeats
  15. “Je crains pas ça tellment” (“I’m not that scard about”) by Raymond Queneau
  16. “The Naming of Cats” by T.S. Eliot
  17. “The reticent volcano keeps…” by Emily Dickinson
  18. “Она” (“Ona”, “She”) by Zinaida Gippius
  19. “Would I Be Shrived?” by John D. Swain
  20. “Evolution” by Langdon Smith
  21. “Chanson d’automne” by Oscar Milosz
  22. “love is more thicker than forget” by e.e. cummings
  23. “My Three Loves” by Henry S. Leigh
  24. “Я мечтою ловил уходящие тени” (“Ia mechtoiu lovil ukhodiashchie teni”, “With my dreams I caught the departing shadows”) by Konstantin Balmont
  25. “Dane-geld” by Rudyard Kipling

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Brickbats: March 2021

BB1-march-2021

The Department of Homeland Security inspector general is investigating whether U.S. Customs and Border Protection’s purchase of cellphone location data without warrants is improper. The agency has paid nearly half a million dollars to access a database compiled by a marketer. In 2018, the U.S. Supreme Court ruled that the government must generally obtain a warrant to obtain such data from cellphone carriers, but the agency argues that because it is buying the information from a third party, the decision does not apply.

In November, Thai officials announced the largest ketamine bust in the nation’s history, ensnaring some 11.5 tons of the anesthetic. They now say they were wrong. The white powder was all actually trisodium phosphate, a cleaning agent. A government spokesman says it “might have been premature to hold a press conference” touting the bust before doing full lab tests.

The American Civil Liberties Union (ACLU) of Indiana has filed a lawsuit claiming that Manchester High School violated the First Amendment rights of Dondre Eades. The junior wore a shirt to school that read “I hope I don’t get killed today for being black.” He says administrators told him to remove the shirt. When he refused, they removed him from school for the day. The ACLU says the shirt did not violate the school handbook, and students have worn shirts with other political messages on them.

Police in Sarto, Manitoba, Canada, blocked the entrance to the parking lot of a local church to prevent it from having a drive-in service in November. They also fined a man who did pull into the parking lot CA$1,296 ($1,014). The church had planned to broadcast the service by radio while those attending remained in their cars. Under provincial emergency orders to combat the coronavirus, only online religious services are permitted.

When Joseph Bennett noticed some Jeffersonville, Kentucky, police officers near a McDonald’s, he decided to stop and videotape them. He was standing across the parking lot, well away from the officers, when some of them approached him and demanded ID. When he refused, Bennett claims, an officer punched him. Bennett was handcuffed and cited for menacing and resisting arrest. A police spokesperson says the department is investigating the matter.

Officials in South Australia locked down the entire state after a man told them he got the coronavirus from picking up a takeout order at a pizza restaurant. Fearing they had a superspreader event on their hands, authorities even banned outdoor exercise and dog walking. But three days later, they lifted the lockdown. It turned out the man had lied. He actually worked at the restaurant alongside a security guard who had tested positive for the virus.

Facebook has agreed to comply with the Vietnamese government’s demand that it censor “anti-state” material.

The government of Quebec says it will ban the sale of gasoline-powered passenger cars in 2035. The government of British Columbia had already announced it will ban the sale of gasoline-powered trucks and cars by 2040.

Two separate federal lawsuits are challenging an Oregon coronavirus relief program that will funnel $62 million solely to black Oregonians, saying it unconstitutionally discriminates against those of other races. The state legislature passed the law despite advice from its own lawyers that it was unconstitutional.

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Dems Ditch Minimum Wage Tax Scheme To Fast-Track $1.9 Trillion Stimulus

Dems Ditch Minimum Wage Tax Scheme To Fast-Track $1.9 Trillion Stimulus

Senate Democrats are ditching a proposal to use tax code to penalize corporations which don’t raise the minimum wage for their lowest paid workers, according to Bloomberg. According to two anonymous sources, the move comes after Democrats were left seeking alternatives after the Senate parliamentarian nixed raising the federal minimum wage to $15 an hour as part of the $1.9 trillion pandemic relief package.

Senate Majority Leader Chuck Schumer (D-NY)

With the minimum wage discussion out of the way, for now, the Senate “could begin consideration of the stimulus measure as soon as Wednesday — with final votes as soon as late Thursday — pending full Democratic support and sign off from the parliamentarian,” according to the report.

The tax penalties were proposed by Senate Finance Committee Chairman Ron Wyden (D-OR) and Budget Committee Chairman Bernie Sanders (I-VT, who notoriously didn’t pay his own campaign staff $15 an hour until he was called out), however it became clear over the weekend that pushing the issue would risk failure, as all 50 Senate Democrats would need to agree on specific language in order to avoid missing a March 14 deadline for extending expiring supplemental unemployment benefits, according to one of Bloomberg‘s sources.

The decision removes a major complication in the Senate and could speed approval of the rest of the package in the chamber. In addition to getting the backing of all 50 senators who caucus with Democrats, the tax language also would have had to pass muster with the parliamentarian, the House and the administration and be signed by Biden — all in a two-week period.

Still, dropping the minimum wage increase from the stimulus could create other headaches for both Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi. –Bloomberg

On Saturday, the House narrowly passed their version of the stimulus (219-212) which includes the $15 an hour minimum wage which had no GOP support. Two moderate Democrats voted no to the party’s signature issue. With House and Senate Democrats divided on the issue, “the conflict is bound to increase tension between the two wings of the party with Biden in the middle.”

The current big-ticket items in the bill include $1,400 direct payments to individuals, a $400 weekly federal unemployment benefit through Aug. 29, and help for those having difficulty in paying rents and mortgages during the pandemic.

On Monday, progressive lawmakers sent President Biden and Vice President Kamala Harris a letter spearheaded by Rep. Ro Khanna (D-CA) which demands they set aside the parliamentarian’s ruling on minimum wage within the upcoming stimulus package. Signatories included Alexandria Ocasio-Cortez (D-NY), who said on Friday: “Really our options right now, at least our immediate options on this specific issue, is to do something about this parliamentary obstacle or abolish the filibuster.”

We’re moving ahead with a bill that probably will get no Republican votes in the Senate, but will have broad Republican support in the country,” Democratic Senator Chris Coons told CNN‘s “State of the Union” on Sunday. 

Meanwhile, Congressional GOP say the plan is still too expensive, and includes items such as transportation projects which have nothing to do with the pandemic.

“It’s $1.9 trillion, more than half of it won’t even be spent in this calendar year … So how could it be about COVID relief? No one expects a year from now that we’ll be in the COVID crisis we are in now,” GOP Senator Rob Portman told ABC‘s “This Week.”

 Both chambers must pass the same version of the bill before sending it to Biden’s desk.

Tyler Durden
Mon, 03/01/2021 – 12:21

via ZeroHedge News https://ift.tt/37TXu8n Tyler Durden

A Primer On Commodity ‘Supercycles’

A Primer On Commodity ‘Supercycles’

Authored by Mark Burton, Thomas Biesheuvel, and Alex Longley via Fortune.com,

A surge in commodity prices has Wall Street banks gearing up for the arrival of what may be a new – an extended period during which demand drives prices well above their long-run trend. A major impetus is the massive stimulus spending by governments as they juice up their economies following pandemic lockdowns. The evidence includes surging copper and agricultural prices and oil back at pre-COVID-19 levels.

One theory is that this could be just the start of a years-long rally in appetite for raw materials across the board, but the reality is more complicated.

1. What is a supercycle?

A sustained spell of abnormally strong demand growth that producers struggle to match, sparking a rally in prices that can last years or in some cases a decade or more. For some analysts, the current rally is rekindling memories of the supercycle seen during China’s rise to economic heavyweight status beginning in the early 2000s. Commodities have experienced three other comparable cycles since the start of the 20th century. U.S. industrialization sparked the first in the early 1900s, global rearmament fueled another in the 1930s and the reindustrialization and reconstruction of Europe and Japan following the Second World War drove a third during the 1950s and 1960s.

2. What did the last one look like?

From around 2002, China entered a phase of roaring economic growth, fueled by a rollout of modern infrastructure and cities on an unprecedented scale. Suppliers struggled to fulfill surging demand for natural resources. In commodities, there’s often a time lag to get the product where it’s wanted since adding capacity, such as opening a new mine, doesn’t happen overnight. For more than a decade, materials including iron ore were in tight supply. Copper, priced below $2,000 a ton for much of the 1990s, broke $10,000 and oil jumped from $20 a barrel to $140.

3. Who says this is another supercycle?

Among the bulls are analysts at JPMorgan Chase & Co. and Goldman Sachs Group Inc. The commodities rally will be a story of a “roaring 20s” post-pandemic economic recovery as well as ultra-loose monetary and fiscal policies, according to JPMorgan. Commodities may also jump as an unintended consequence of the fight against climate change, which threatens to constrain oil supplies while boosting demand for metals needed to build renewable energy infrastructure and manufacture batteries and electric vehicles, it said. Those include cobalt and lithium. Furthermore, commodities are typically viewed as a hedge against inflation, which has become more of a concern among investors.Play Video

4. Why might this not be one?

Longer-term trends point to a cooling down for some materials. For example, the energy transition that heralds a bright new age for green metals such as copper would be built on the decline of oil. Even producers of iron ore, the biggest market of mined commodities, expect prices to weaken over time as Chinese demand starts to decline and new supply comes online. It’s an even bleaker outlook for coal, with producers looking to exit the market altogether as the world switches away from the heavy-polluting fuel. Iron ore, coal and oil were the chief beneficiaries of China’s industrial expansion. Those markets dwarf copper in scale.

5. What’s been happening with oil?

Prices collapsed in 2020, even turning negative at one point, but have recovered as demand rebounded more strongly than many had expected. Early in 2021, the Organization of the Petroleum Exporting Countries and its allies were holding back crude equivalent to about 10% of current global supply. Market fundamentals have shifted, especially in the U.S. with the emergence of shale oil. Haunting traditional producers is the prospect that a prolonged period of high prices would trigger a new flood of supply beyond OPEC’s control. Even so, some oil bulls aren’t ruling out the eventual return of prices above $100 a barrel.

6. Which other commodities are rising?

Copper was on a tear in early 2021 thanks to rapidly tightening physical markets as governments plow cash into electric-vehicle infrastructure and renewables. Goldman Sachs, BlackRock Inc., Citigroup Inc. and Bank of America Corp. saw the metal moving toward all-time highs. While agricultural commodities have their own particular dynamics, soybeans and corn have rallied to multiyear highs, driven by relentless buying from China as it rebuilds its hog herd following a devastating pig disease. Agricultural prices are more dependent on global economic and population growth, rather than the decarbonization trend underpinning excitement in metal

Tyler Durden
Mon, 03/01/2021 – 12:05

via ZeroHedge News https://ift.tt/3b7q48l Tyler Durden