Average Credit-Card Debt Soars By 13%, Largest Increase Since 1999

Average Credit-Card Debt Soars By 13%, Largest Increase Since 1999

Authored by Bryan Jung via The Epoch Times,

The average credit card debt held by households in the United States surged by 13 percent in the second quarter, the largest increase in such debt since 1999, according to an Aug. 30 report from the Federal Reserve Bank of New York.

More consumers are increasingly relying on credit amid sky-high inflation in order to pay their bills.

Credit card balances increased by $46 billion from last year, becoming the second-biggest source of overall debt last quarter, though it is below pre-pandemic levels.

Meanwhile, the current credit card interest rate is now at a record high of 17.96 percent, according to Bankrate, a financial advice website.

American Households Are Falling into Debt

Total American household debt rose by $312 billion from the second quarter of 2021 for a total of $16.15 trillion at the end of June 2022.

This is a 2 percent rise from the year-ago quarter, largely due to a jump in mortgage rates, and car loan and credit card balances, caused by40-year high inflation, said Joelle Scally, a  New York Fed analyst, in a statement.

The Federal Reserve is attempting to fight inflation by raising interest rates, causing fears that its aggressive moves may encourage a bad recession, as the economy recovers from the pandemic.

“The second quarter of 2022 showed robust increases in mortgage, auto loan, and credit card balances, driven in part by rising prices,” said Scally, who reviews microeconomic data at the central bank branch.

Household debt balances are about $2 trillion higher than they were at the end of 2019, before the start of the pandemic, as the price of goods and services have skyrocketed.

“‘Bidenflation’ is wreaking havoc on American families’ finances. Credit card debt is rapidly rising,” wrote Rep. Lloyd Smucker (R-Pa.) in a tweet.

Mortgage balances, which have fueled much of the increase in debt, rose in the second quarter, climbing by $207 billion, to $11.39 trillion.

A consequence of this is that there are 35,000 people facing new foreclosures on their credit reports, a jump of more than 45 percent from the previous quarter.

This is still below the 100,000 foreclosures before the pandemic, due to a moratorium prohibiting the repossession of homes during the period.

The hike in interest rates since March of this year had caused mortgage rates to rise, leading to a decline in growth in the housing sector.

Auto loans rose by $33 billion, to $199 billion, while student loan balances remained relatively the same as last year.

Student loan payments have been on hold since the pandemic, but were set to resume on Sept. 1.

President Joe Biden has made student loan forgiveness one of his major issues for the fall midterm elections—an act that has divided much of the country.

In total, non-housing balances in the second quarter increased by $103 billion, or 2.4 percent over the first quarter, the largest quarterly increase in six years.

Delinquency Rates Are About to Get Worse

“While household balance sheets overall appear to be in a strong position, we are seeing rising delinquencies among subprime and low-income borrowers with rates approaching pre-pandemic levels,” said Scally.

Researchers at the New York Fed, in a separate blog post last month, warned that the historically low delinquency rates appear to be coming to an end.

The 30-day delinquency rate rose, from 1.66 to 1.81 percent in the second quarter of 2022, according to the latest delinquency data from the Federal Reserve.

Delinquency rates among areas of the country with the lowest average income rose 2.5 percent from roughly 2 percent last year.

“With the supportive policies of the pandemic mostly in the past, there are pockets of borrowers who are beginning to show some distress on their debt,” the researchers said, noting that “the delinquency transition rates for credit cards and auto loans are creeping up, particularly in lower-income areas.”

The central bank researchers said that delinquencies are “rising modestly” across all debt types and is worse among low-income borrowers.

However, Scally believes that average household finances appear to be in a strong position at this time.

Tyler Durden
Fri, 09/02/2022 – 14:45

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The US Power Grid Can’t Support Its Climate Pledges

The US Power Grid Can’t Support Its Climate Pledges

Authored by Haley Zaremba via OilPrice.com,

  • America’s ailing power grid can’t support the country’s climate pledges.

  • While Texas and California are producing enough renewable energy to share with other regions, surplus clean power is doomed to languish on the grid because of the dated infrastructure. 

  • The U.S. desperately needs to invest into creating “smart grids” that are capable of measuring and regulating a constant in- and outflow of energy.

The neglected domestic power grid is standing between the United States and its climate pledges. In many parts of the country, most notably Texas, California, and the Southwest, renewable energy plants are producing enough clean, emissions-free energy to share with other regions – but there’s no way to get it there. Instead, surplus clean energy is doomed to languish on the grid where it was produced instead of being sold to where there is demand. This phenomenon has led to the peculiar outcome of negative energy prices in parts of the country in the midst of a global energy crisis. 

It’s been over a year since Oilprice published an article titled “The U.S. Desperately Needs To Modernize Its Power Grid,” and while President Joe Biden’s administration has thrown considerable money and publicity toward the issue, the need is no less desperate today. More than $400 billion have been allocated for clean energy infrastructure and climate initiatives broadly through last year’s infrastructure bill and this month’s Inflation Reduction Act, but a the U.S. needs to spend $360 billion through 2030 and $2.4 trillion by 2050 on energy transmission systems alone in order to keep up with projected renewable energy expansion, according to a Princeton study from December of 2020.

The issue is not just a failure of investment, it’s a failure of vision. That’s according to Jeremy Rifkin, an economist who has advised Democrats and Republicans on power infrastructure, who was interviewed for a recent Bloomberg article on the phenomenon of negative energy prices. Instead of cooperating on a countrywide project to modernize the energy grid and coordinate a smooth clean energy transition, renewable energy projects have been carried out in silos by private enterprises that are not communicating with each other. “The narrative got lost,” Rifkin says. “It’s not about putting in solar and wind, it’s about ‘How do you transform this country?’” He believes that the importance and scale of grid modernization and energy transmission should be something akin to President Dwight Eisenhower’s highways initiative or President Franklin Delano Roosevelt’s New Deal. Instead, the piecemeal approach that has actually taken place has left a lot of stranded clean energy at a time when energy is in remarkably high demand. According to data and analytics company Yes Energy, wholesale energy prices went negative approximately 200 million distinct times across the seven US grids in 2021. That number is set to skyrocket this year as grid bottlenecks for solar and wind power grow even worse in Texas, California, and the Southwest.

On the whole, prices this year fell below zero for 6.8% of the time. In the Southwest’s Southwest Power Pool, prices went negative a whopping 17% of the time for the first seven months of 2021.

“Prices aren’t falling below zero often enough to meaningfully dent wholesale power costs,” Bloomberg reports.

“But the phenomenon is a warning sign that grids aren’t anywhere near ready for a broad shift to renewable power.”

The particularly cruel irony is that regions in desperate need of energy are turning back to coal – the dirtiest fossil fuel – while clean, green energy goes to waste on other parts of the nation’s grid system. 

Transmission is not the only issue with the United States’ aging power grid – far from it. Existing grids are designed for one-way energy flow – from a utility to a consumer. But with residential solar panels gaining popularity, more and more energy will be flowing the other way. In order to meet the complex set of demands posed by wide-scale renewable energy adoption, the U.S. will have to invest heavily into creating “smart grids” that are capable of measuring and regulating a constant in- and outflow of energy. 

In this regard, the United States is falling far behind some other countries. In China, for example, where creating a sweeping and transformative energy policy is not hindered by Democracy, we’re seeing the introduction of “flexible green electricity grids.” If the U.S. wants to keep up with the Joneses, it’s going to require a far more sweeping, bi-partisian, and expensive endeavor.

Tyler Durden
Fri, 09/02/2022 – 14:05

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Fed Whisperer Says Jobs Report “Unlikely To Change” Powell Rate Hike View; BofA, Goldman Call For 50bps

Fed Whisperer Says Jobs Report “Unlikely To Change” Powell Rate Hike View; BofA, Goldman Call For 50bps

In the aftermath of the first 75bps rate hike in June, which made a mockery of the Fed’s forward guidance and which required a WSJ “whisperer” to prep the market for the biggest rate hike in three decades with about 24 hours notice, Nick Timiraos – the new generation’s Fed-trial ballooner and a poor man’s Jon Hilsenrath, has become a bit of a celebrity in Fed watching circles as everything he says is now viewed as gospel explicitly coming from Powell’s mouth. Which is why many were anticipating his NFP post-mortem today, “explaining” how today’s jobs report would impact the Fed’s thinking. 

What he said was a nothingburger, echoing our own take from this morning, namely that the Fed is still on pace for 50 or 75bps, and that the CPI report from Sept 13 will be the tiebreaker, to wit:

The latest strong employment figures keep the Federal Reserve on track to raise interest rates by either 0.5 or 0.75 percentage point at its meeting later this month to combat high inflation.

Monthly wage growth eased last month to its slowest pace in six months. Average hourly earnings for private sector workers rose 0.3%, or an annualized rate of 3.8%, in August from July and 5.2% from a year earlier.

Friday’s report isn’t likely to significantly change Fed officials’ views about how much to raise the fed-funds rate at their Sept. 20-21 policy meeting. A handful of them have indicated they would prefer to lift it by 0.5 percentage point, though they have left the door open to backing a 0.75-point increase. At least one official, St. Louis Fed President James Bullard, has said he would favor a third consecutive 0.75-point rate rise.

An August inflation report, due on Sept. 13, along with other data on spending and economic activity could further influence the debate over how much to raise rates later this month. Officials have said they want to see evidence that price pressures and economic growth are cooling before they slow their pace of rate rises, but they have signaled they also are paying attention to how their previous increases this year are affecting the economy.

The decision over how much to raise rates this month is likely to come down to how quickly Fed Chairman Jerome Powell wants to get rates high enough to further slow economic activity.

Like we said, nothingburger. Which is why we look to BofA and Goldman’s own reactions to the payrolls report for something more actionable.

First, here is BofA chief economy Michael Gapen explaining why he retains a more dovish outlook for Federal Reserve policy (full note available to pro subscribers):

In our view, the August employment report contains enough good news for the Fed that will lead them to slow the pace of rate hikes beginning in September. We continue to expect the Fed to raise its policy rate by 50bp in September. Looking further ahead, we maintain our view that the Fed will hike by another 50bp in November and 25bp in December, bringing the target range for the federal funds rate by year end to 3.5-3.75%. Risks to our outlook for Federal Reserve policy are skewed in the direction of more rate hikes on account of underlying momentum in the US economy. That said, based on the full set of data in hand since the Fed last met in July, we think risks are in the direction of more cumulative hikes over time as opposed to another large 75bp hike in September.

And here is Goldman (full note also available to pro subscribers):

We continue to expect another 100bp of Fed funds rate increases over the next three meetings: +50bp in September and +25bp in both November and December, with risks skewed towards earlier or larger increases

The market has eased expectations to just a 55% chance of a 75bps hike…

Of course, what the Fed does or doesn’t do, is actually secondary because as the latest Gazprom news out of Europe demosntrate clearly, it’s Putin who has been in charge all along.

Tyler Durden
Fri, 09/02/2022 – 13:45

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Trump Disregards Democracy, While Biden Ignores Its Dangers


President Joe Biden's attack on the "extreme ideology" of "MAGA Republicans" gives democracy and Donald Trump too much credit.

In his speech last night about “the continued battle for the soul of the nation,” President Joe Biden said some things that are indisputably true. He noted that democracy requires candidates to accept the results of “free and fair elections” and that refusing to do so threatens the rule of law as well as the peaceful transfer of power.

Donald Trump and his followers have conspicuously failed that basic test. But Biden’s emphasis on preserving democracy sets the bar for good government pretty low, eliding the tension between majority rule and individual freedom. And his related claim that Trump’s refusal to concede electoral defeat amounts to an “extreme ideology” gives the former president, who is anything but a systematic thinker, too much credit.

“Donald Trump and the MAGA Republicans represent an extremism that threatens the very foundations of our republic,” Biden warns. But his response confuses means with ends, elevating democracy above the values it promotes when properly constrained.

Biden says “the freedom to vote and have your vote counted” is “the most fundamental freedom in this country.” The Framers saw things differently. They understood that unconstrained democracy, like unconstrained autocracy, poses an intolerable threat to liberty. The constitution they produced is chock-full of provisions that check the will of the people, including limits on the federal government’s powers, requirements for passing legislation, and explicit recognition of rights that the people’s representatives must respect, no matter what the majority demands.

Speaking at Independence Hall in Philadelphia, Biden offers his take on the Declaration of Independence. “In America,” he says, “we’re all created equal”—a strange way to summarize Thomas Jefferson’s much less parochial assertion that “all men are created equal,” a “truth” he took to be “self-evident.” Biden notably skips over the part about the God-given “unalienable rights” that all people (not just Americans) have by virtue of their humanity.

Moving on to the Constitution, Biden locates its essence in the first three words of the preamble: “We the People…” Never mind all the operative provisions that follow, which impose numerous restrictions on majority rule.

“These two documents and the ideas they embody—equality and democracy—are the rock upon which this nation is built,” Biden declares. While he is surely right that equality under the law is a basic principle of a free society, he and his fellow Democrats tend to take a more expansive view of equality, one that requires redistributive schemes like the orgies of federal spending that he brags about later in his speech.

Although the authority for such programs is hard to locate in the Constitution, Biden is unconcerned about such niceties. He implies that “We the People” means popularly elected legislators can do nearly anything they think the majority wants. By identifying an ambiguous “equality” and a sacred “democracy” as the twin lodestars of American government, Biden issues a convenient license for his party’s policy agenda.

Biden does get around to mentioning “liberty,” but it seems like an afterthought, a value that takes third place at best. His idea of liberty includes the “right to choose” (abortion, presumably), “the right to privacy” (abortion, again), the “right to contraception,” and the “right to marry who you love.” All of those, he warns, are threatened by “MAGA forces.”

Biden’s understanding of liberty evidently does not include the right to armed self-defense, which is arbitrarily denied by the “gun safety law” that he proudly cites as evidence that America has “an unlimited future” and “is about to take off.” Nor does it include freedom of speech, judging from Biden’s assiduous efforts to control what people say on social media platforms and his assertion that our system of government “gives hate no safe harbor.” Biden’s support for kangaroo-court justice at public universities suggests he also is not so keen on due process.

The right to keep and bear arms, the right to freedom of speech, and the right to due process, unlike the right to abortion, are all explicitly mentioned in the Bill of Rights. Maybe Biden never got that far, since he is so mesmerized by the vast powers he perceives in the opening words of the preamble.

Based on Biden’s words and deeds, we have a pretty good idea of what he believes about the proper size and scope of government. He thinks politicians selected by “the People” can do whatever they want, provided they do not impinge on the specific freedoms that he values. When it comes to abortion, contraception, and same-sex marriage, the majority does not rule. But when it comes to nearly everything else, the people’s will—or, more realistically, Biden’s perception of it—prevails.

The “extreme MAGA ideology” that Biden perceives is not based on a coherent set of political principles. It is based on one man’s erratic impulses. And more than anything these days, it is based on Trump’s conviction that he actually won reelection in 2020.

Aside from a few longstanding instincts, such as Trump’s aversion to free trade and immigration, his only persistent motivation is self-interest. On abortion, Trump abandoned his pro-choice opinions and cynically embraced the pro-life movement, promising to appoint Supreme Court justices who would vote to overturn Roe v. Wade. On gun control, he turned against measures he once supported, transforming himself into “a big Second Amendment person.” It defies credulity to suggest that Trump has given serious thought to the constitutional issues raised by restrictions on abortion or guns, or to the merits of the originalism he espoused when he ran for president in 2016.

If the Republican Party’s always inconsistent defense of limited government was not enough to discredit its supposed devotion to constitutional principles, the fact that it has now organized itself around Trump’s self-flattering delusions decisively proves that it stands for nothing worth defending. The Democratic Party, meanwhile, has always been willing to ditch the Constitution when it proved inconvenient.

Assuming that Trump runs for president in 2024 and Biden seeks reelection, voters will again be confronted by a choice between an old man who is manifestly unqualified for the job and an old man whose long political career has taught him nothing about the limits of government power and the fallible judgments of the people who wield it. While a willingness to accept the outcome of a free and fair election is a minimum qualification for the presidency, voters should demand more than that.

The post Trump Disregards Democracy, While Biden Ignores Its Dangers appeared first on Reason.com.

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Short Circuit: A Roundup of Recent Federal Court Decisions

Please enjoy the latest edition of Short Circuit, a weekly feature written by a bunch of people at the Institute for Justice.

New cert petition: The IRS wants to impose a $2.17 mil civil penalty on an octogenarian from Massachusetts, and she wants to argue that it’s a violation of the Excessive Fines Clause. But earlier this year, the First Circuit said there’s no need to consider whether the penalty (for failing to timely file a bank-account form) might be a tad excessive because—said the court—the penalty “is not a ‘fine'” under the Eighth Amendment. Boom. Case closed. This week, IJ asked the Supreme Court to tell the First Circuit and the IRS (and a bevy of trial courts) to start taking the Excessive Fines Clause seriously. Click here to learn more about the case.

Big Sky friends, Short Circuit Live! is heading to the University of Montana on September 15th for a live recording at the law school. Co-hosted by the Federalist Society and the American Constitution Society, the event will focus on the Montana Supreme Court and will feature Natasha Prinzing Jones of Boone Karlberg P.C. (who argued on behalf of amici in a case you may remember from last week’s roundup), Colin Stephens of Stephens Brooke P.C., and Rylee Sommers-Flanagan of Upper Seven Law. Hope to see you there!

  • In 2016, the Department of Housing and Urban Development issued a new rule prohibiting the use of lit tobacco products in public housing. The group NYC Citizens Lobbying Against Smoker Harassment sues, alleging that the rule is unauthorized, arbitrary, and multifariously unconstitutional. D.C. Circuit: But it isn’t any of those things, so case dismissed.
  • After President Biden took office, he ordered OSHA to consider whether any emergency temporary standards (ETS) were necessary to combat COVID-19. OSHA issued an ETS related to healthcare workers, but this soon took a backseat to a second ETS that required vaccination or weekly testing at all large employers. After the Supreme Court struck down the vaccination requirement, OSHA realized it couldn’t comply with the required notice-and-comment period on the healthcare ETS and withdrew it. Nurses’ unions sought a writ of mandamus, demanding the ETS be reinstated until a permanent rule could be enacted. D.C. Circuit: We don’t have that power; after all, OSHA could ultimately decide that no rule is necessary.
  • Two brothers convicted of making illicit marijuana available to the good people of Rochester, N.Y. object to marijuana’s status as a Schedule I drug with no legitimate medical uses. Feds: You have to petition the DEA to reschedule the drug; no fair trying to do that in a criminal case. Second Circuit: On the contrary, they can bring their constitutional defenses. Unfortunately for them though, they get rational-basis review, so it doesn’t matter if there are indeed legitimate medical uses for marijuana. Their four- and two-year sentences are affirmed.
  • In 2014, a Pennsylvania man shoots two state troopers, killing one. During the 48-day manhunt, police seize the man’s parents’ guns. Police don’t claim that the parents or their guns were involved in the crime and never use the guns as evidence against the son. Nevertheless, police refuse to return the guns, now eight years after the crime and after the son lost his last direct appeal. Third Circuit: Which is an unconstitutional taking as well as an infringement on the parents’ Second Amendment right to keep arms.
  • Allegation: “That’s a nice medical testing business you have there. Would be a shame if someone told the FTC about these patient records you leaked. But hey, if you pay for our cybersecurity services, this can be our little secret.” “We didn’t leak these files—you stole them!” “So that’s the way you want to play it?” Third Circuit: The now-defunct testing company’s defamation claim against the cybersecurity firm can go forward.
  • A putative class action alleges that the Virgin Islands gov’t has been systematically withholding tax refunds (except from the politically connected) as a way to save money. But! Through merest coincidence, the only named class representative gets her tax refund in the midst of the litigation. Is this crazy, inexplicable and definitely totally random turn of events a class-killer? Third Circuit: Maybe not!
  • Allegation: Biloxi, Miss. hospital adds a surcharge to every emergency room patient’s bill without any disclosure beforehand. Patient: If I’d known I was going to get hit with the $2.2k surcharge (reduced to $770 after discounts), I would have sought care elsewhere. Fifth Circuit: Our best guess is that under Mississippi law, the hospital did have a duty to disclose. Case undismissed.
  • “Imagine if Texas—a state that prides itself on promoting free enterprise—passed a law saying that only those with existing oil wells in the state could drill new wells. It would be hard to believe. It would also raise significant questions under the dormant Commerce Clause.” Fifth Circuit: Texas’s 2019 law limiting the building of interstate electrical transmission lines to the owners of existing facilities raises similar questions under the dormant Commerce Clause. (Though, naturally, it raises no questions under the Contracts Clause, because that one doesn’t mean anything anymore.)
  • After trial and two previous trips to the Fifth Circuit, ExxonMobil is slapped with a $14 mil penalty for thousands of Clean Air Act violations at its massive Baytown, Tex. complex. Fifth Circuit: And this time there’s nothing to reconsider. Dissent: It might be tedious to require plaintiffs to show how the harms they suffered were caused by particular violations on particular days, but that’s what the law requires. And, except for approx. 40 days of the thousands they alleged, plaintiffs did not make that showing.
  • Under Texas law, scrap dealers must promptly submit reports of scrap-metal transactions to the Texas Department of Public Safety. Houston scrap dealer fails to submit two dozen reports, is arrested, and ultimately acquitted. He sues the police officer who prepared the supporting affidavit. Claim: The officer omitted from his affidavit the fact that my scrap-metal-reporting software (“Scrap Dragon”) was glitchy. Fifth Circuit: No dice. Even if that information had been included, there still would have been probable cause that you violated the reporting law, since you knew of the glitch but didn’t bother to submit your reports through a different medium.
  • Allegation: Cheatham County, Tenn. officer conducting welfare check at night (at home where someone called 911 twice and hung up) does not identify himself as law enforcement but does shine his headlights at the house and unholsters his gun. When a resident says that he is armed (he’s not) and opens the door, the officer fires eight times (hitting no one). Sixth Circuit: A jury might think that was excessive force. No QI. Dissent: Shooting at someone and missing isn’t a “seizure” under the Fourth Amendment unless the person submits, which this guy didn’t, yelling profanities at the officers and wandering around after.
  • After the Supreme Court ruled that sentences of life without parole are unconstitutional for juvenile offenders, Missouri began to allow such offenders to apply for parole after serving 25 years. Eighth Circuit (sitting en banc): And those parole proceedings are not a sham. Dissent: The proceedings are constitutionally deficient. Hearing officers don’t give adequate reasons for denying parole, inmates’ parole files are secret, and inmates are sharply limited about what they can speak about (for instance, no talking about their rehabilitation)—and part of the majority’s reasoning is based on an argument the state didn’t make.
  • To get an initiative on the ballot in Nebraska, you must get a minimum number of signatures statewide, but you also must satisfy a signature-distribution requirement: Your signatories must “be so distributed as to include five percent of the registered voters of each of two-fifths of the counties of the state.” Marijuana-legalization group: That requirement violates the Equal Protection Clause by devaluing the signatures of people in more populous counties relative to those in less populous ones. Eighth Circuit: No preliminary injunction for you. The signature-distribution requirement has a rational basis. Dissent: Seems to me strict scrutiny might be a better fit.
  • Libertarians/goldbugs of the nation, rejoice! The Eighth Circuit has just struck down Minnesota’s registration and surety requirement for bullion traders for violating the dormant Commerce Clause. Can the return of Liberty Dollars be far behind? (Yes, it can.)
  • San Jose, Calif. public high school student group requires leadership to abide by a statement of faith, which includes belief that sex is only okay between a husband and wife. School: That’s discrimination, we’re pulling your official status. Group: Hey, but you don’t enforce your anti-discrimination policy against these other groups who screen for gender and ethnicity. Ninth Circuit: Yeah, that’s pretty messed up school, you targeted these guys because of their religious beliefs. Here’s a preliminary injunction. Concurrence: I just wanna add that some of the faculty were super mean. Like, unconstitutionally mean. Dissent: Standing?
  • Superior, Ariz. officers show up at house with search warrant for a motel room. (They got oral permission from a judge to search the house (after a search of the motel room didn’t turn up the drug cache they were looking for) but neglected to physically update the warrant.) Ninth Circuit: So searching the house was unconstitutional, but (over a dissent) that wasn’t clearly established until now. Qualified immunity.
  • In Voltaire’s famous satire Candide, the optimistic Dr. Pangloss espouses the Leibnizian philosophy that “all is for the best in this best of all possible worlds.” Philosophically questionable, but true enough for the Candide Group, which successfully invokes California’s anti-SLAPP law against CoreCivic, one of the largest operators of private prisons and immigrant detention centers in the United States. A Ninth Circuit panel holds that previous circuit cases applying the California law in federal court are not so irreconcilable with Supreme Court precedent that they must be overturned.
  • Atlanta-area federal task force officers shoot suspect and then ignite a flashbang grenade near his body, which he does not react to. Officers: And after that we stopped shooting. He pointed a gun at us, so good shoot. But wait! Audio (from a bystander filming outside the home) reveals an officer fired off an additional burst after the flashbang ignited. Eleventh Circuit: It’s a clearly established constitutional violation to shoot an unconscious suspect. No qualified immunity for the post-grenade burst that a jury might find you lied about. (Ed.: No mention of whether one even can sue federal agents for violating the Constitution, something which the Supreme Court has recently thrown into doubt.)
  • Allegation: From 2010 to 2018, Burger King franchisees agreed not to hire employees from other Burger King restaurants for at least six months after they left their previous job. Eleventh Circuit: Which might be an antitrust violation. Case undismissed.

Last year, New Yorker Serafim Katergaris discovered that the city had fined him $1k for missing paperwork about a 2013 boiler inspection. One problem: He bought the home in 2014 after the boiler had been removed, so the paperwork would’ve been required of a previous owner. Serafim explained this, but the city declined to waive the fine. The city also refused to give him a hearing or a chance to appeal. Instead, the city simply demanded that he pay. Unfortunately, this is a common practice for NYC, which frequently demands penalties for supposed violations of its property codes without providing an opportunity to be heard. So this week, Serafim teamed up with IJ to challenge the city’s brazen violation of his due process rights. After all, no process cannot be due process. Learn more here.

The post Short Circuit: A Roundup of Recent Federal Court Decisions appeared first on Reason.com.

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The War on Terror Continues Apace in Africa


Lt. Gen. Langley talking at a hearing

After a wave of U.S. airstrikes against jihadist groups in the Horn of Africa this summer, U.S. officials have made their way to Mogadishu to show their support for Somalia’s embattled central government. Lt. Gen. Michael Langley, the newly appointed commander of U.S. Africa Command, the division of the U.S. military focused on operations in Africa, made a visit to Mogadishu earlier this week to meet with Somali defense and security officials.

The visit comes as al-Shabab, a terrorist group affiliated with Al Qaeda, has resurged in strength and reach in the country by waging new and brazen attacks against civilians in Somalia, and as the Biden administration reverses a Trump-era withdrawal from the East African country.

Back in May, the Biden administration announced that 500 U.S. soldiers would return to Somalia as a “small, persistent military presence.” U.S. officials have maintained that military operations in Somalia have been limited to support roles for the country’s central government. “We provide #security assistance that strengthens Somali [and African Union] partners as Somalia assumes full responsibility for protecting the Somali people from extremist violence and extortion,” the U.S. Embassy in Mogadishu tweeted during Langley’s visit.

That said, U.S. forces have taken on a greater role in maintaining security and stability within Somalia in recent months. Over the summer, the U.S. military carried out several drone strikes against al-Shabab targets, killing dozens of suspected al-Shabab members. The strikes come just two years after human rights group Amnesty International criticized U.S. Africa Command for the lack of accountability for civilian deaths resulting from a separate wave of U.S. airstrikes on purported al-Shabab targets.

The resurgence of al-Shabab in recent months can be attributed to instability in the region caused by neighboring Ethiopia’s ongoing civil war. Last month, al-Shabab invaded Ethiopia’s northern provinces, inflicting heavy damage on Ethiopian forces. On August 22, al-Shabab fighters also laid siege to a hotel in the heart of Mogadishu, killing more than 20 people and injuring over a hundred.

The redeployment of troops and these recent airstrikes represent the latest episode in a 15-year U.S. intervention in Somalia done entirely without congressional approval. Though U.S. troops mostly withdrew from the country following the 1993 Battle of Mogadishu, during which Islamic insurgents shot down Black Hawk helicopters and embarrassed the Clinton administration, the Bush administration returned to Somalia in 2007 as part of its global war on terror. The Biden administration’s renewed commitment to Somalia also comes as it draws down other fronts in the war on terror and Africa becomes a growing priority in broader U.S. military and diplomatic strategy amid the rise of China and Russia on the continent.

Almost exclusively, U.S. military actions on the continent have occurred without much congressional consultation. When four Green Berets were killed in an ambush in Niger in 2017, many prominent lawmakers reacted with surprise at learning that significant numbers of U.S. troops were even deployed in Western Africa. “I didn’t know there was 1,000 troops in Niger,” Sen. Lindsey Graham (R–S.C.), who served on the Senate Armed Services Committee at the time, said on NBC’s Meet the Press. While the Obama administration informed Congress that the U.S. would be sending troops to Niger, little congressional oversight followed as U.S. engagement there increased, creating a disconnect between Congress and the White House. As with this summer’s airstrikes in Somalia, no explicit congressional authorization existed for those deployments either.

Though lawmakers promised accountability in the immediate aftermath of the ambush, a report from the Center for a New American Security found that few improvements had been made to the oversight process by 2020. With the Biden administration not backing down from its redeployment plans anytime soon, a lack of reform could have unfortunate consequences.

The post The War on Terror Continues Apace in Africa appeared first on Reason.com.

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Monkeypox Starts To Recede as Men at Risk Change Sexual Behavior


Man getting monkeypox vaccine

New monkeypox cases in the United States and Europe are starting to decline as we head into September.

NBC News looked over the data from the Centers for Disease Control and Prevention (CDC) and calculated a 40 percent decline in new cases since early August. Cases are also falling in countries like Germany and the Netherlands.

The eventual (and slow-walked) arrival of monkeypox vaccines did probably make a dent in the spread. More than 350,000 doses of the vaccine have been administered. As a reminder, though, the U.S. had more than 1 million doses of a vaccine available in storage in Denmark, but both bureaucratic red tape and indecisiveness on the part of the Department of Health and Humans Services kept them from being deployed quickly enough to stop monkeypox from spreading across the country.

Instead, NBC News notes, gay and bisexual men, once it became clear that sex was the primary source of the disease’s spread, pulled back on risky behavior. Research from the CDC found a 50 percent drop in anonymous or random sex among these men, and 20 percent of the men they polled had gotten at least one dose of the monkeypox vaccine.

All of this is evidence that blunt clarity with Americans about how monkeypox is spread was vitally important. It’s true that monkeypox is itself not a sexually transmitted disease. It can be spread through saliva and physical contact with the rashes of somebody infected, regardless of where the rashes are on their body. But the strain of monkeypox that spread out of Africa and across Europe and eventually the world turned out to behave like a sexually transmitted disease not unlike herpes. And so, the messaging by health officials that “anybody” could get monkeypox was very misguided and should have been abandoned once it became clear that the vast majority of Americans were not actually at risk.

The current data from the Department of Public Health for Los Angeles County, for example, show that all the early demographic factors are holding steady as cases there start to decline. As of last week, 98 percent of monkeypox infections were among men. Only nine women in the entire county reported infections. Of the infected men, only three percent claim to be heterosexual. Everybody else was either gay or bisexual or declined to say.

The handwringing over how and whether to target gay and bisexual men with specific warnings against careless random sexual encounters was entirely misguided. The data shows that when these men understood the risks, they changed their behavior. NBC News published a story that borders on the comical about how gay men canceled all their sexy party plans for the summer, suggesting that this has been somehow stressful or traumatic. It’s temporary, guys. We survived COVID. And this is actually less dangerous.

That NBC story also continues to perpetuate unjustified concerns that monkeypox will lead to fear-based discrimination against gay men similar to the worst days of the AIDS crisis. That fear has been misplaced. There has not been one monkeypox-related backlash that’s even worthy of note, and it’s silly to keep giving voice to these fears even as the spread starts to recede.

The lesson here is that people should take responsibility for reducing their risk of viral infection whenever possible, not just because it’s the moral and mature thing to do, but because we simply cannot expect competent responses from federal agencies when a crisis rears its head.

The post Monkeypox Starts To Recede as Men at Risk Change Sexual Behavior appeared first on Reason.com.

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Review: HeidiWorld Wants You To Rethink Prostitution


minisHeidiWorld--The-Heidi-Fleiss-Story_iheartpodcasts

Just as the ’90s nostalgia boom is peaking, a new podcast arrives set in the pleasingly seedy world of Hollywood madam Heidi Fleiss. Host Molly Lambert is explicit about her agenda in the first of the series’s 10 episodes: She’s using Fleiss’ story to push listeners to reconsider the criminalization of prostitution, and to critically examine the conflation of sex work and sex trafficking.

Her gambit is mostly successful. Lambert’s presentation of Fleiss as a restless, ambitious woman who serves time for facilitating transactions between consenting adults is sympathetic without being fluffy or flattering. HeidiWorld suffers from a mild case of Wikipedia disease; each new setting or character gets a too-thorough backstory. But the central narrative about sex, money, and power is just as fascinating today as it was to the scandal sheets and magazine shows of Fleiss’ heyday.

The post Review: <em>HeidiWorld</em> Wants You To Rethink Prostitution appeared first on Reason.com.

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Schools Reopening ‘Was the Work of Democrats in Spite of Republicans,’ Claims White House Press Secretary


White House Press Secretary Karine Jean-Pierre and masked child at school

On Thursday, White House Press Secretary Karine Jean-Pierre received a question from a reporter asking for the Biden administration’s response to newly released reports indicating significant learning loss for the nation’s schoolchildren over the course of the pandemic, specifically in the realms of math and reading.

“What is the administration going to do about this severe learning loss, and does the administration shoulder any blame for not pushing schools to reopen sooner?” asked the reporter.

“Let’s step back to where we were not too long ago when this president walked into this administration, how mismanaged the response to the pandemic was,” replied Jean-Pierre. In under six months, she says, schools in the nation went from being about 46 percent open to nearly all of them being open—but this is due more to the function of time passing since the onset of the pandemic and to the rollout of vaccines than a specific action by a presidential administration.

“That was the work of this president and that was the work of Democrats in spite of Republicans not voting for the American Rescue Plan—which $130 billion went to school to have the ventilation to be able to have the tutoring and the teachers and be able to hire more teachers. And that was because of the work this administration did,” added Jean-Pierre, who richly noted that “schools were not open, the economy was shut down, businesses were shut down.”

“It shows you how mismanaged the pandemic was,” she said, adding herself to the growing list of Democrats who have tried this week to distance their party and themselves from prior support of lockdowns.

Jean-Pierre, of course, neglected to say which party led the charge on shutting schools and the economy down, littering her response with debunkable revisionism. So fact-checkers at major publications hurried to add context to her remarks and correct the record.

Just kidding! Nary a fact-check graced the pages of major publications by Friday morning. Instead, conservative pundits and journalists took to Twitter with screenshots of headlines to remind people which party so fervently opposed school reopening throughout 2020 and much of 2021, even after more information had quickly emerged about COVID risk to kids and other countries’ experiments in resuming in-person schooling.

Jean-Pierre’s comments attempt to sweep under the rug the anti-reopening lefty consensus that dominated news media for so many months of the pandemic. CNN’s Chris Cillizza, for example, wrote about “the very clear dangers of Donald Trump’s push to reopen schools” in July 2020. “Trump pushes and threatens in bid to fully reopen schools,” wrote The Washington Post‘s Laura Meckler that same month. It wasn’t just that reporters and public health experts had concerns about Trump’s disinterest in well-placed COVID mitigation measures; it was that the industry as a whole carried an awful lot of water for the pro-lockdown side while broadly failing to pay attention to the obvious, predictable consequences—learning loss, increased deaths of despair, economic hardship for business owners—that anti-lockdowners had been warning about.

“NPR and other national news outlets were not chock-full of stories about the ways remote learning exacerbated existing inequities,” wrote Mary Katharine Ham for Reason last month. “Public radio didn’t send warnings in its sonorous tones commensurate with what [reporter Anya] Kamenetz knew was generational damage, hitting poor and minority students hardest. It didn’t extensively profile the politically and ethnically diverse coalition of parents who fought for a year to open urban and suburban schools’ doors. It didn’t press large districts and teachers union leaders about their insistence on staying closed while the rest of the world opened safely.”

“Across the country, teachers unions did everything they could to stop reopening,” detailed Peter Suderman in Reason‘s March 2021 issue. “In July, American Federation of Teachers (AFT) President Randi Weingarten threatened ‘protests,’ ‘grievances or lawsuits,’ and even ‘safety strikes.’ The following month in Chicago, Mayor Lori Lightfoot reversed a plan to partially reopen schools two days after the Chicago Teachers Union—which went on strike in 2019—marched against resuming in-person instruction.”

Let’s not forget the body bag protests (done by Washington, D.C.’s teachers union) and obituary templates (distributed by Arizona’s teachers union) so creatively concocted by teachers who, after all these antics, got to hop to the front of the vaccine line in many states—a concession offered by public health authorities in hopes that schools would be able to reopen faster if teachers were vaccinated. This did not satisfy all the unions pushing to remain closed, and some school districts, like San Francisco’s, refused to reopen until August 2021.

It makes sense that Jean-Pierre, the mouthpiece of the administration, would be interested in clearing her party’s name in advance of the midterm elections. It makes no sense why the news media, teeming with fact-checkers, hasn’t hurried to call this nonsense out.

The post Schools Reopening 'Was the Work of Democrats in Spite of Republicans,' Claims White House Press Secretary appeared first on Reason.com.

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Schools Reopening ‘Was the Work of Democrats in Spite of Republicans,’ Claims White House Press Secretary


White House Press Secretary Karine Jean-Pierre and masked child at school

On Thursday, White House Press Secretary Karine Jean-Pierre received a question from a reporter asking for the Biden administration’s response to newly released reports indicating significant learning loss for the nation’s schoolchildren over the course of the pandemic, specifically in the realms of math and reading.

“What is the administration going to do about this severe learning loss, and does the administration shoulder any blame for not pushing schools to reopen sooner?” asked the reporter.

“Let’s step back to where we were not too long ago when this president walked into this administration, how mismanaged the response to the pandemic was,” replied Jean-Pierre. In under six months, she says, schools in the nation went from being about 46 percent open to nearly all of them being open—but this is due more to the function of time passing since the onset of the pandemic and to the rollout of vaccines than a specific action by a presidential administration.

“That was the work of this president and that was the work of Democrats in spite of Republicans not voting for the American Rescue Plan—which $130 billion went to school to have the ventilation to be able to have the tutoring and the teachers and be able to hire more teachers. And that was because of the work this administration did,” added Jean-Pierre, who richly noted that “schools were not open, the economy was shut down, businesses were shut down.”

“It shows you how mismanaged the pandemic was,” she said, adding herself to the growing list of Democrats who have tried this week to distance their party and themselves from prior support of lockdowns.

Jean-Pierre, of course, neglected to say which party led the charge on shutting schools and the economy down, littering her response with debunkable revisionism. So fact-checkers at major publications hurried to add context to her remarks and correct the record.

Just kidding! Nary a fact-check graced the pages of major publications by Friday morning. Instead, conservative pundits and journalists took to Twitter with screenshots of headlines to remind people which party so fervently opposed school reopening throughout 2020 and much of 2021, even after more information had quickly emerged about COVID risk to kids and other countries’ experiments in resuming in-person schooling.

Jean-Pierre’s comments attempt to sweep under the rug the anti-reopening lefty consensus that dominated news media for so many months of the pandemic. CNN’s Chris Cillizza, for example, wrote about “the very clear dangers of Donald Trump’s push to reopen schools” in July 2020. “Trump pushes and threatens in bid to fully reopen schools,” wrote The Washington Post‘s Laura Meckler that same month. It wasn’t just that reporters and public health experts had concerns about Trump’s disinterest in well-placed COVID mitigation measures; it was that the industry as a whole carried an awful lot of water for the pro-lockdown side while broadly failing to pay attention to the obvious, predictable consequences—learning loss, increased deaths of despair, economic hardship for business owners—that anti-lockdowners had been warning about.

“NPR and other national news outlets were not chock-full of stories about the ways remote learning exacerbated existing inequities,” wrote Mary Katharine Ham for Reason last month. “Public radio didn’t send warnings in its sonorous tones commensurate with what [reporter Anya] Kamenetz knew was generational damage, hitting poor and minority students hardest. It didn’t extensively profile the politically and ethnically diverse coalition of parents who fought for a year to open urban and suburban schools’ doors. It didn’t press large districts and teachers union leaders about their insistence on staying closed while the rest of the world opened safely.”

“Across the country, teachers unions did everything they could to stop reopening,” detailed Peter Suderman in Reason‘s March 2021 issue. “In July, American Federation of Teachers (AFT) President Randi Weingarten threatened ‘protests,’ ‘grievances or lawsuits,’ and even ‘safety strikes.’ The following month in Chicago, Mayor Lori Lightfoot reversed a plan to partially reopen schools two days after the Chicago Teachers Union—which went on strike in 2019—marched against resuming in-person instruction.”

Let’s not forget the body bag protests (done by Washington, D.C.’s teachers union) and obituary templates (distributed by Arizona’s teachers union) so creatively concocted by teachers who, after all these antics, got to hop to the front of the vaccine line in many states—a concession offered by public health authorities in hopes that schools would be able to reopen faster if teachers were vaccinated. This did not satisfy all the unions pushing to remain closed, and some school districts, like San Francisco’s, refused to reopen until August 2021.

It makes sense that Jean-Pierre, the mouthpiece of the administration, would be interested in clearing her party’s name in advance of the midterm elections. It makes no sense why the news media, teeming with fact-checkers, hasn’t hurried to call this nonsense out.

The post Schools Reopening 'Was the Work of Democrats in Spite of Republicans,' Claims White House Press Secretary appeared first on Reason.com.

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