Should This Juror Have Been Excused for Cause in a Child Rape Prosecution?

Tristan James Morales was convicted of raping his 8-year-old niece; he argued that one of the jurors was improperly biased, and should have been excused for cause (as the defense lawyer had argued). Here’s the Montana Supreme Court’s summary of the facts; do you think the juror should have been excused? The court split 4-3 on this, but you’ll need to check the opinion to see which side prevailed.

“On the first day of trial, prior to voir dire, the court distributed a questionnaire to prospective jurors asking whether they or anyone they knew had been a victim of sexual assault or whether they held strong beliefs that would make it difficult to serve as a juror in Morales’s case. The court then conducted individual in-chambers voir dire of sixteen prospective jurors based on their responses to the questionnaire. The court released seven of nine jurors Morales challenged for cause based on their experiences with or strong beliefs about sexual assault, one over the prosecution’s objection.

“When the questioning turned to prospective juror R.C., she revealed in chambers that her sister, foster children with whom she grew up, and a close friend all had been sexually abused as children. The District Court questioned R.C.:

[Q.] Okay. We all come to the courtroom with personal experiences and our background that shapes how we see the world, our issue here is can you take that information that you have with your friends and whatnot and set that aside and listen to the evidence as it comes in fairly and impartially and follow the instructions on the law that I give you?

[A.] I don’t think that I could.

[Q.] And could you elaborate on that, please?

[A.] Because I’ve seen the emotional damage that it caused later on through these things that — and between that and my religious belief that sexual relations are between a man and woman who have been lawfully married, it is hard for me to set those beliefs aside.

[Q.] Even if I instructed you on the law regarding the State’s burden of proof, Mr. Morales'[s] presumption of innocence, and the fact that Mr. Morales does not have to present any evidence in this case whatsoever, do you feel like your background and experience would cause you a problem?

[A.] Probably not, then.

[Q.] So you would follow my instructions?

[A.] I would follow your instructions, yes, although it would be difficult to set this aside.

[Q.] Okay.

[A.] It’s a hard place for me to be to try to—I’ve never been in that situation where I’ve had to separate those two beliefs.

[Q.] It’s not necessarily separating, you can’t forget everything you know, that’s the reality. The issue, ma’am, is—like I say, we all come to this with backgrounds and experiences; the issue is Mr. Morales is guaranteed a fair trial; that during this trial process, it’s the State that has the burden of proof, and that burden of proof is beyond a reasonable doubt; and because the State has the burden of proof, Mr. Morales doesn’t have to present any evidence whatsoever. Furthermore, you cannot draw any type of negative inference if he chooses not to present any evidence.

Furthermore, he also has a guaranteed constitutional right not to testify. I would instruct you specifically on his constitutional right to testify, it’s a right we all enjoy as citizens, but you can’t consider it in any way, and furthermore, you cannot let it enter into your jury deliberations in any way.

So that’s a synopsis of some of the law I would instruct you on in this case with regard to some of those issues; would you follow the law I give you?

[A.] (No verbal response.)

[Q.] And there’s no right or wrong answer here, what I and the parties are looking for is for you just to tell us the truth.

[A.] (No verbal response.)

“At this point, the prosecutor asked the court if she could elaborate and engaged R.C. in the following line of questioning:

[Q.] [Morales is] charged with something; right?

[A.] Right.

[Q.] We are not asking you to say that an act is okay, you are not setting aside your religious beliefs, the law is that it’s not okay, so what you need to decide is if he did it, he’s guilty, right, and so the State has to prove that to you.

[A.] Right.

[Q.] So do you understand that difference?

[A.] I do understand that difference.

[Q.] That we are not asking you to decide that conduct is okay.

[A.] Right.

[Q.] Can you fairly listen to the evidence and be impartial when you are deciding another person’s guilt?

[A.] I think that I could.

[Q.] You think that you could?

[A.] I think, I’m not—

[Q.] But can you—if the State fails to prove its case, you’re listening to our witnesses, and it doesn’t come together and we don’t prove it, can you find him not guilty?

[A.] Yeah, I guess you’re unable to prove—if all the facts are laid out and you are unable to prove without a doubt, then that’s what it is.

“Defense counsel then followed up:

[Q.] Do you like judging people?

[A.] Not particularly.

[Q.] Does your religious belief system suggest you not judge people?

[A.] Yes.

[Q.] Your personal experience with the group of people you’ve identified— your sister, the foster children and friends—does that make you feel pretty angry?

[A.] Not angry.

[Q.] Resentful?

[A.] Pained, is that the same thing—I don’t think that’s resentful.

[Q.] Do you feel a need to exercise out that pain?

[A.] No.

[Q.] If Mr. Morales says nothing, does nothing, do you expect him to defend himself?

[A.] I would expect his—you, as his representative, to defend him.

[Q.] And if we choose to sit quietly and say to the Court we choose not to put on a defense, will you hold that against him?

[A.] No, because they would be expected to prove their case.

[Q.] Would you anticipate that he—would you infer anything by him not putting on a case?

[A.] Yeah, I think so.

[Q.] What would you infer?

[A.] Probably guilt, because if you have nothing to hide, you hide nothing.

“Morales moved to strike R.C. for cause. The prosecutor asked R.C. whether she would be able to follow the court’s instructions and not infer guilt if Morales exercised his constitutional right to not testify. R.C. replied, ‘As a citizen, I would have to follow the law. Personal beliefs, I would have to set aside.’ The court addressed R.C.:

[Q.]… I want to come back to your job as a juror [] to listen to the evidence and make a decision on whether he’s guilty or not guilty, and that’s on the evidence presented in the courtroom only and the law as instructed by me. Now, I can tell you right now what I’m going to instruct you on if you serve as a juror, number one, they have the burden of proof.

[A.] Right.

[Q.] They have to prove the offense, every element of it beyond a reasonable doubt; two, if the State doesn’t meet their burden of proof, you must find him not guilty; three, the Defendant has absolutely no burden of proof, he may choose to rely on the State’s failure to prove their case; four, individually, he has a constitutional right guaranteed by the United States and Montana constitutions, something we all enjoy as citizens, not to testify; and furthermore, you cannot infer anything based on his decision not to testify, and you cannot let that enter into your jury deliberations in any way; can you follow the law that I give you?

[A.] Yes.

[Q.] And despite knowing former foster children and relatives and friends who have been sexually abused, can you put that aside and judge Mr. Morales based solely on the evidence in this courtroom and not let that personal bias or knowledge that you have impact Mr. Morales and the evidence you hear in this courtroom?

[A.] Yes.

[Q.] Are you certain?

[A.] Yes.

Read the opinion to see the court’s analysis.

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Filling In The Gaps

Filling In The Gaps

Tyler Durden

Thu, 08/06/2020 – 12:25

Authored by Sven Henrich via NorthmanTrader.com,

I had the pleasure of speaking with Raoul Pal of RealVision a few weeks ago. The interview was recorded in mid July and it was an opportunity have a heart to heart discussion about the key big issues all of us face on some level or another.

We all find ourselves in a rapidly changing world with unprecedented circumstances and we are all trying to make sense of it knowing what we know, recognizing what we don’t know and keeping taps on the possibilities of what could happen.

RealVision just made the interview publicly available on their YouTube channel today and it turns out to be good timing.

From a market direction perspective one of the many issues we discussed was the open gap on $SPX, the February gap in the 3300 zone.

3 weeks later and here we are, $SPX filled that gap today:

I should note that the gap on $ES futures is still slightly higher, but hitting this gap today brings the S&P 500 within an earshot of all time highs, negative earnings growth be damned.

One can’t shake the feeling:

The overpowering force of central bank liquidity continues to dominate the action today. And whether hitting this gap will prove to have any relevance remains to be seen. There are still open gaps higher on other indices, such as the $NYSE which still remains below the June highs:

But also note the multitude of glaring open gaps on $NYSE below. Not all gaps fill or will fill for a long time, but the abundance of open gaps is one of the many technical issues that give pause about the eventual sustainability of this historic liquidity driven rally.

These markets remain a journey, an expensive journey as valuations and forward’s multiples continue to expand.

Are these valuations and multiple expansions justified? I invite you to have a listen to our discussion as Raoul and I try to dissect the big picture issues:

*  *  *

For the latest public analysis please visit NorthmanTrader. To subscribe to our market products please visit Services.

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China Helped Saudis Build Secret Nuclear Site For Extracting Yellowcake: WSJ

China Helped Saudis Build Secret Nuclear Site For Extracting Yellowcake: WSJ

Tyler Durden

Thu, 08/06/2020 – 12:04

When it comes to America’s allies in the Middle East, Washington has long “looked the other way” while they recklessly pursue questionable weapons technology. Think Pakistan’s nuclear program at a time when the Reagan administration prioritized fighting the Soviets in Afghanistan, or Israel’s estimated 100 to possibly 200 undeclared nukes.

This has more recently been the case with Saudi Arabia, where the kingdom has long been rumored to pursue nukes to gain dominance over Shia rival Iran. And now this willful looking the other way on banned weapons is coming back to bite Washington hard.

Saudi Arabia has constructed with Chinese help a facility for extracting uranium yellowcake from uranium ore, an advance in the oil-rich kingdom’s drive to master nuclear technology, according to Western officials with knowledge of the site,” The Wall Street Journal writes in a bombshell investigative report.

Al Ula in northwest Saudi Arabia, file image.

So this is where US foreign policy has arrived: no, there’s no yellowcake in Niger and never was, but we now have America’s global rival China helping our Sunni Wahhabi ‘ally’ construct a secret nuclear site while lying about it all along. Despite mounting evidence, the Saudi Energy Ministry issued a statement saying it “categorically denies” that it’s built an extraction facility.

However, there was this admission out of Saudi Crown Prince Mohammed bin Salman back in 2018: he said at the time “if Iran developed a nuclear bomb, we will follow suit as soon as possible.”

The Saudis maintain they are only in pursuit of a peaceful nuclear program, which happens to be Iran’s same position as well.

The WSJ identified the location based on intelligence sources and unnamed Western officials as in a desert area outside al-Ula in northwest Saudi Arabia. “The facility, which hasn’t been publicly disclosed, is in a sparsely populated area in Saudi Arabia’s northwest and has raised concern among U.S. and allied officials that the kingdom’s nascent nuclear program is moving ahead and that Riyadh is keeping open the option of developing nuclear weapons,” WSJ continues.

Barrel filled with yellowcake uranium, file image via ABC.net.au

Currently it’s public knowledge that The China National Nuclear Corp. and the China Nuclear Engineering Group Corp., which signed memorandums of understanding with the Saudi government in 2017 for uranium exploration, are working closely with Riyadh.

The new reports suggest these are instrumental in assisting with the secret nuclear facility.

Given the US has invaded at least one Mideast country on false charges it had Yellowcake Uranium in its possession, it’ll be interesting to see if there’s even so much as a statement of public censure directed at Riyadh out of the administration. We won’t hold our breath, given it seems such condemnations are reserved only for the likes of Assad or Gaddafi or the Iranians. 

But now that China has apparently entered the mix, things could get sticky, even with Washington’s closes Gulf ally the Saudis.

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The Open Trap Door Under Real Yields Rings Many Alarms

The Open Trap Door Under Real Yields Rings Many Alarms

Tyler Durden

Thu, 08/06/2020 – 11:45

By Laura Cooper, market strategist at Bloomberg

With no imminent end to collapsing real yields – which just hit a new record low -1.10%, the side effects of financial repression warn of stagflation, asset bubbles and policy impotence. Fresh lows for U.S. 10-year real yields this week show a trap door opened by growing economic angst, climbing inflation expectations and an indefinite pause in monetary policy.

The Fed’s explicit guidance that rates will stay near zero for the foreseeable future has markets pricing a hold until at least 2023, effectively killing price discovery.

When it comes to bond purchases, the central bank will likely have to skew buying to the longer-end to aid the recovery. That, combined with the search for yield, risks pushing yields on the entire U.S. curve below 1%, a threshold breached only briefly in March.

Not even the record-shattering supply announced on Wednesday is likely to lift yields, with insatiable appetite for safety and the seeds of debt monetization planted.

Meanwhile, inflation expectations have room to rise, with U.S. 10-year breakevens about 20bps shy of the 2020 peak. They could get a boost should questions ring louder over the Fed relaxing its inflation mandate, which has been in place since January 2012.

Fed Chairman Powell alluded to tweaking the price-stability mandate in the forthcoming policy review, while member Brainard coined the “opportunistic reflation” strategy to explicitly welcome an inflation overshoot. Such a stance would be a material departure for the Fed, given policy lags of at least one year.

Should markets believe the Fed will do what it takes for inflation to go beyond 2% in pursuit of full employment, then in theory 10-year U.S. real yields could tumble 40bps-50bps more from roughly -1.07% currently. That’s assuming nominal yields remain range-bound, and would be well below the estimated real neutral rate

That opens the door to risks such as stagflation — a more plausible scenario now given the unique combination of unprecedented monetary and fiscal stimulus; a deglobalization trend that’s creating supply constraints; and elevated unemployment that’s quashing hopefor a quick economic recovery.

The tumble in real yields is also amplifying the bifurcation between the real economy and financial assets. While market-based inflation measures ramp up, firms that lack pricing power and absent wage negotiations are keeping alive the risks of a deflationary spiral.

The Bank of Japan offers a cautionary tale on the pitfalls of revising inflation mandates, which it did in January 2013 to combat chronic deflation. A more than trebling of its balance sheet, negative rates, forward guidance and ETF purchases failed to spur price growth.

The Fed itself examined the Japan experience in a study earlier this year. Lessons include that the central bank faces the risk of getting caught in “never-ending monetary accommodation even when real economic activity is strong or when financial stability risks accumulate.”

To be sure, the widespread decline in real yields has been in place for decades and has been driven by structural factors such as a demographic-driven propensity to save and the integration of Chinese investors into global financial markets. Yet this time around, financial repression has taken over real yields and further declines would only amplify the many risks ahead.

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NY AG Accuses NRA Of “Massive Fraud”, Seeks To “Dismantle” Guns-Rights Organization

NY AG Accuses NRA Of “Massive Fraud”, Seeks To “Dismantle” Guns-Rights Organization

Tyler Durden

Thu, 08/06/2020 – 11:44

Update (1140ET): James is starting off the hearing by detailing a state lawsuit against the NRA and seeking the dissolution of the pro-second amendment organization, one of several subjects she was expected to address today.

James alleges the the organization violated non-profit laws by diverting “millions of dollars away from the charitable mission of the organization for personal use by senior leadership,” who awarded contracts that benefited friends and family. That would be a slam-dunk if she were going after politicians. But at a non-profit, things are more blurry.

BBG published an update on the lawsuit almost immediately, suggesting that the financial news organization – owned by a former mayor of NYC – had the story under embargo ahead of time. Here’s a snippet from their reporting, which accuses NRA of “massive fraud”.

New York is seeking to dissolve the National Rifle Associationas the state attorney general accused the gun rights group and four senior officials of engaging in a massive fraud against donors.

A sprawling lawsuit filed Thursday in state court in Manhattan alleges the NRA diverted charitable donations for years to enrich the organization’s top executives in violation of laws governing nonprofits, New York Attorney General Letitia James said in a statement. The state is also demanding millions of dollars in restitution and penalties.

The case may pose one of the biggest legal threats the NRA has faced since its founding in New York in 1871. The turmoil began with a power struggle last year between former NRA president Oliver North and longtime leader Wayne LaPierre, which led to allegations of self dealing. A subsequent state probe found wrongdoing blamed for more than $64 million in losses in the last three years alone, James said.

“The NRA’s influence has been so powerful that the organization went unchecked for decades while top executives funneled millions into their own pockets,” James, a Democrat, said in the statement. “The NRA is fraught with fraud and abuse.”

For those who aren’t familiar, this is the culmination of what Trump once called “an illegal investigation” by Cuomo and the AG, which stems from a power struggle that rocked the NRA last year.

The news sent shares of gun makers lower.

The NRA must “get its act together quickly, stop the internal fighting, & get back to GREATNESS – FAST!” Trump tweeted at the time.

We imagine he’ll be chiming in on Twitter about this new lawsuit any minute now.

* * *

New York Attorney General Letitia James is delivering a press briefing on Thursday where it’s widely suspected that she will share “bombshell” allegations about President Trump and his finances, after subpoenaing documents from Deutsche Bank.

In recent days, stories about DB scrutinizing Trump’s former banker, and the Manhattan AG subpoenaing the bank over records pertaining to Trump, have stoked suspicions that something “big” might be coming.

Will this briefing live up to the hype? We’re about to find out.

via ZeroHedge News https://ift.tt/2Pr24kS Tyler Durden

Should This Juror Have Been Excused for Cause in a Child Rape Prosecution?

Tristan James Morales was convicted of raping his 8-year-old niece; he argued that one of the jurors was improperly biased, and should have been excused for cause (as the defense lawyer had argued). Here’s the Montana Supreme Court’s summary of the facts; do you think the juror should have been excused? The court split 4-3 on this, but you’ll need to check the opinion to see which side prevailed.

“On the first day of trial, prior to voir dire, the court distributed a questionnaire to prospective jurors asking whether they or anyone they knew had been a victim of sexual assault or whether they held strong beliefs that would make it difficult to serve as a juror in Morales’s case. The court then conducted individual in-chambers voir dire of sixteen prospective jurors based on their responses to the questionnaire. The court released seven of nine jurors Morales challenged for cause based on their experiences with or strong beliefs about sexual assault, one over the prosecution’s objection.

“When the questioning turned to prospective juror R.C., she revealed in chambers that her sister, foster children with whom she grew up, and a close friend all had been sexually abused as children. The District Court questioned R.C.:

[Q.] Okay. We all come to the courtroom with personal experiences and our background that shapes how we see the world, our issue here is can you take that information that you have with your friends and whatnot and set that aside and listen to the evidence as it comes in fairly and impartially and follow the instructions on the law that I give you?

[A.] I don’t think that I could.

[Q.] And could you elaborate on that, please?

[A.] Because I’ve seen the emotional damage that it caused later on through these things that — and between that and my religious belief that sexual relations are between a man and woman who have been lawfully married, it is hard for me to set those beliefs aside.

[Q.] Even if I instructed you on the law regarding the State’s burden of proof, Mr. Morales'[s] presumption of innocence, and the fact that Mr. Morales does not have to present any evidence in this case whatsoever, do you feel like your background and experience would cause you a problem?

[A.] Probably not, then.

[Q.] So you would follow my instructions?

[A.] I would follow your instructions, yes, although it would be difficult to set this aside.

[Q.] Okay.

[A.] It’s a hard place for me to be to try to—I’ve never been in that situation where I’ve had to separate those two beliefs.

[Q.] It’s not necessarily separating, you can’t forget everything you know, that’s the reality. The issue, ma’am, is—like I say, we all come to this with backgrounds and experiences; the issue is Mr. Morales is guaranteed a fair trial; that during this trial process, it’s the State that has the burden of proof, and that burden of proof is beyond a reasonable doubt; and because the State has the burden of proof, Mr. Morales doesn’t have to present any evidence whatsoever. Furthermore, you cannot draw any type of negative inference if he chooses not to present any evidence.

Furthermore, he also has a guaranteed constitutional right not to testify. I would instruct you specifically on his constitutional right to testify, it’s a right we all enjoy as citizens, but you can’t consider it in any way, and furthermore, you cannot let it enter into your jury deliberations in any way.

So that’s a synopsis of some of the law I would instruct you on in this case with regard to some of those issues; would you follow the law I give you?

[A.] (No verbal response.)

[Q.] And there’s no right or wrong answer here, what I and the parties are looking for is for you just to tell us the truth.

[A.] (No verbal response.)

“At this point, the prosecutor asked the court if she could elaborate and engaged R.C. in the following line of questioning:

[Q.] [Morales is] charged with something; right?

[A.] Right.

[Q.] We are not asking you to say that an act is okay, you are not setting aside your religious beliefs, the law is that it’s not okay, so what you need to decide is if he did it, he’s guilty, right, and so the State has to prove that to you.

[A.] Right.

[Q.] So do you understand that difference?

[A.] I do understand that difference.

[Q.] That we are not asking you to decide that conduct is okay.

[A.] Right.

[Q.] Can you fairly listen to the evidence and be impartial when you are deciding another person’s guilt?

[A.] I think that I could.

[Q.] You think that you could?

[A.] I think, I’m not—

[Q.] But can you—if the State fails to prove its case, you’re listening to our witnesses, and it doesn’t come together and we don’t prove it, can you find him not guilty?

[A.] Yeah, I guess you’re unable to prove—if all the facts are laid out and you are unable to prove without a doubt, then that’s what it is.

“Defense counsel then followed up:

[Q.] Do you like judging people?

[A.] Not particularly.

[Q.] Does your religious belief system suggest you not judge people?

[A.] Yes.

[Q.] Your personal experience with the group of people you’ve identified— your sister, the foster children and friends—does that make you feel pretty angry?

[A.] Not angry.

[Q.] Resentful?

[A.] Pained, is that the same thing—I don’t think that’s resentful.

[Q.] Do you feel a need to exercise out that pain?

[A.] No.

[Q.] If Mr. Morales says nothing, does nothing, do you expect him to defend himself?

[A.] I would expect his—you, as his representative, to defend him.

[Q.] And if we choose to sit quietly and say to the Court we choose not to put on a defense, will you hold that against him?

[A.] No, because they would be expected to prove their case.

[Q.] Would you anticipate that he—would you infer anything by him not putting on a case?

[A.] Yeah, I think so.

[Q.] What would you infer?

[A.] Probably guilt, because if you have nothing to hide, you hide nothing.

“Morales moved to strike R.C. for cause. The prosecutor asked R.C. whether she would be able to follow the court’s instructions and not infer guilt if Morales exercised his constitutional right to not testify. R.C. replied, ‘As a citizen, I would have to follow the law. Personal beliefs, I would have to set aside.’ The court addressed R.C.:

[Q.]… I want to come back to your job as a juror [] to listen to the evidence and make a decision on whether he’s guilty or not guilty, and that’s on the evidence presented in the courtroom only and the law as instructed by me. Now, I can tell you right now what I’m going to instruct you on if you serve as a juror, number one, they have the burden of proof.

[A.] Right.

[Q.] They have to prove the offense, every element of it beyond a reasonable doubt; two, if the State doesn’t meet their burden of proof, you must find him not guilty; three, the Defendant has absolutely no burden of proof, he may choose to rely on the State’s failure to prove their case; four, individually, he has a constitutional right guaranteed by the United States and Montana constitutions, something we all enjoy as citizens, not to testify; and furthermore, you cannot infer anything based on his decision not to testify, and you cannot let that enter into your jury deliberations in any way; can you follow the law that I give you?

[A.] Yes.

[Q.] And despite knowing former foster children and relatives and friends who have been sexually abused, can you put that aside and judge Mr. Morales based solely on the evidence in this courtroom and not let that personal bias or knowledge that you have impact Mr. Morales and the evidence you hear in this courtroom?

[A.] Yes.

[Q.] Are you certain?

[A.] Yes.

Read the opinion to see the court’s analysis.

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This second passport comes with free university tuition

I’ve written a lot in the past that there are two lifelong benefits that parents can provide their children, practically from birth.

The first is the gift of a foreign language. Every kid is going to learn his/her parents’ native tongue. 

But giving a child constant exposure to a foreign language from a very young age will help them develop an additional native fluency that will last a lifetime.

It makes an enormous difference. My own Spanish fluency, for example, is quite strong. But there’s no mistaking that I’m a gringo who learned the language later in life. 

My friend Jim Rogers understands this very well. So when he moved to Singapore several years ago, he hired a Chinese governess whose sole responsibility was to speak Mandarin Chinese to his kids. 

They grew up speaking Chinese (and English too), and they’ll have that native fluency for the rest of their lives. It’s a huge advantage for them.

Another gift you can give your child is a second citizenship.

A second citizenship and passport gives them the ultimate insurance policy. At any point in their lives, they will always have an alternative place to live, work, study, and invest outside of their home country. It opens all sorts of doors, opportunities, and Plan Bs.

If you’re thinking about having children, you might want to consider going overseas to any number of countries that grant citizenship to any child born in their territory.

The legal concept is known as jus soli, or ‘right of the soil’. And this includes most of the western hemisphere.

So if you give birth in Canada, the US, Mexico, and pretty much the entirety of Latin America (including Chile, Brazil, Panama, Ecuador, Argentina, etc.) your kid under most circumstances will automatically have citizenship in that country. 

And that’s a citizenship they’ll have for life.

Another way to obtain citizenship for your kids, of course, is through ancestry. 

Your ancestors may have already given you this gift without you even knowing; citizenship through ancestry allows you to claim citizenship if you have ancestors from a wide range of places like Italy, Ireland, Poland, Spain, or Greece.

But if you’re not part of the lucky bloodline club, there is another way to give the gift of a second citizenship to your whole family… even if your kids are already grown.

Simply buy it.

These are called ‘Citizenship-by-Investment’ programs. And for larger families looking to acquire a second passport, the country of Antigua and Barbuda offers an amazing deal.

(Technical point: despite the way it sounds, ‘Antigua and Barbuda’ is one country, not two. It consists of two primary islands which are named… wait for it… Antigua, and Barbuda.)

As we have discussed recently, countries that depend on tourism are in rough shape from Covid-19. And they need ways to boost their tax revenue.

So a few months ago, Antigua and Barbuda introduced a program where an entire family of six can purchase citizenship for just $150,000.

Technically this is really a ‘citizenship by donation’. You’re not making a traditional investment where you fund a business or buy stock, generate a return, and recoup your capital down the road.

In this case, your donation goes to the country’s “University of the West Indies Fund”.

One really convenient aspect about Antigua and Barbuda’s Citizenship by Investment program is that the legislation is quite lenient regarding family members.

Under the program’s official rules, you can include children up to the age of 28 (as long as they are enrolled in university). You can also include dependent parents as young as 58 years old. 

With fees included, it comes to about $168,000 for a typical family. That breaks down to just $28,000 per person, which is peanuts for a second passport.

One added benefit: Antigua and Barbuda’s Citizenship-by-Investment passport comes with one year of free tuition for a member of the family at the University of the West Indies. 

You might be surprised to find out that UWI has attracted some incredibly prominent minds. Notable alumni include 1992 Nobel Prize laureate Derek Walcott, and 23 current and former prime ministers from around the region.

UWI’s alumni website also lists 71 Rhodes scholars who graduated from the university. And UWI consistently beats many larger, more prominent schools in the Times Higher Education’s annual world university rankings.

So, overall this is a highly competitive Citizenship-by-Investment program. And if you have a large family, including dependent parents and adult children, it’s definitely worth considering.

[Members of Sovereign Man Total Access: remember, your Total Access membership makes you eligible to acquire this passport at an even bigger discount that can easily amount to $15,000 to $20,000 or more.]

Source

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State and Local Governments Need Some Tough Love From Uncle Sam

Congress-1161-Keith-Lamond-Dreamstime

State and local governments want more funds from the federal government to patch their budgets. Lack of revenue due to the recession and self-inflicted damage from the COVID-19 shutdowns of their economies, as well as larger-than-ever expenditures on top their regular overextended budgets, mean that many of them are hurting for cash. And while they’re asking for $500 billion in bailout cash, Speaker of the House Nancy Pelosi wants to give them $1 trillion. I, on the other hand, think it’s about time state and local governments start fending for themselves.

As I’ve explained before, there are many reasons to oppose state and local government bailouts. For starters, these jurisdictions have already received large amounts of federal funds to pay for their coronavirus-related expenditures. As part of the Coronavirus Aid, Relief and Economic Security Act and other relief measures, they’ve received $280 billion for various coronavirus-related expenses and another $150 billion for more flexible needs. The Federal Reserve has also set up a $500 billion program to facilitate short-term borrowing by state and local governments.

That’s on top of the annual handout that the federal government gives to state and local governments. In fiscal year 2020, they received an estimated $790.7 billion in the form of 181 grants to pay for various expenses. In other words, 30 percent of their budgets comes from the federal government annually, which is an amount that has increased 27 percent since 2015.

Then there’s the issue of poor planning on the part of many states. My Mercatus Center colleague Tad DeHaven and I have written about this issue. We highlight the moral hazard that comes from systematically bailing out institutions, whether they are state and local governments or private companies. When bailed out, decision-makers have much-reduced incentives to plan better for the next time around. There’s also the fact that, contrary to the common refrain from journalists and states themselves, these governments have increased spending quite considerably since the last recession and failed to plan appropriately for the next time they’re inevitably in trouble.

But there’s another argument against bailing out state and local governments that has surfaced recently. A report from the National League of Cities in May revealed that the states weren’t very good at getting the money to local governments. Also, a new dataset collected by the Department of the Treasury Office of Inspector General that looks at how much the state and local governments have spent of their coronavirus relief bill funds as of June 30 shows that they have spent much less than you might think.

Some states have spent virtually none of the money allocated by Uncle Sam.

South Carolina, for example, has yet to use its $2 billion in relief. Michigan, which is asking for a bailout, spent only 3 percent of the more than $3 billion it received. New Jersey is also asking for a bailout, yet it has distributed a measly 2.1 percent of its federal funds so far.

The states demanding bailouts may likely argue that what they really need is more flexibility in order to be able to use federal funds to address their revenue shortfalls. As matters stand right now, states must use the bailout money on coronavirus-related expenditures. So, when those actual expenditures are lower than the allocated funds, they can’t spend them.

The flexibility argument doesn’t hold water, in my opinion. It’s one thing for state and local governments to ask the federal government for help to cover expenditures they couldn’t foresee, such as those related to the pandemic. But they shouldn’t be asking federal taxpayers to pay for their routine expenditures, especially when these governments have failed to plan appropriately for revenue shortfalls that inevitably occur, as they’re bound to encounter emergencies. Governments should prepare for them. They should cut spending and, if that’s not enough, they should turn to their own citizens for the funds needed to cover non-coronavirus expenditures. Those funds could be obtained through higher taxes or spending cuts elsewhere. Their routine spending should come from their taxes.

State and local governments are always eager to have the federal government solve their financial problems for them. But they will continue to have financial difficulties as long as Uncle Sam continues to cave. The first step toward having healthier and more responsible state and local governments would be no bailout.

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Capital One Hit With $80 Million Fine, Cease & Desist Order, Over 2019 Data Breach

Capital One Hit With $80 Million Fine, Cease & Desist Order, Over 2019 Data Breach

Tyler Durden

Thu, 08/06/2020 – 11:21

The Fed on Thursday announced a new fine imposed on Capital One for a massive data breach last year that impacted more than 100 million people. Within 90 days, the company must also submit a plan to the central bank showing how it will improve protection of customers’ personal information, along with an internal audit of the firm’s risk management protocols.

Capital One has also agreed to pay an $80 million fine to the Office of the Comptroller of the Currency over the major hacking incident, which occurred last year.

The Virginia-based bank and credit card issuer says it has taken steps to tighten security, even before the July 2019 arrest of the suspected hackers who pulled off the attack.

But under these orders, CO will be required to take additional steps.

via ZeroHedge News https://ift.tt/30yPxSP Tyler Durden

The Unraveling Will Accelerate

The Unraveling Will Accelerate

Tyler Durden

Thu, 08/06/2020 – 11:15

Authored by Charles Hugh Smith via The Daily Reckoning,

Since the first news of pandemic in late January, I’ve been discussing potential accelerants to the unraveling of our fragile financial system.

The system appears stable until a catalyst pushes it off the cliff.

Catalysts come in a variety of forms, from the apparently modest “straw that breaks the camel’s back” to a broad awakening that the status quo simply isn’t capable of adapting successfully to new realities.

Financial catalysts tend to result in sudden, cataclysmic collapses in liquidity, solvency and sentiment.

While the Federal Reserve can “fix” liquidity crises by creating currency out of thin air, that doesn’t make bankrupt firms solvent or make employers hire employees.

Once complacent confidence slides into cautious fear, massive liquidity injections to keep the system from crashing are understood as last-ditch desperation.

Social-political catalysts are slower but much more difficult to reverse.

While the media’s attention has been focused on the protests, two other social-political catalysts are gathering momentum:

1. The failure of our education complex to provide workable childcare/learning solutions

2. The hope of a V-shaped recovery in employment collapses.

There is a class dynamic in these potential catalysts that few mainstream pundits follow to the logical conclusion.

When socio-economic distress is limited to the politically powerless working class — for example, the blatant exploitation of gig-economy and contract workers — the power structure can safely ignore the brewing crisis because the distressed workforce has insufficient economic-political power to threaten the rule of the Power Elites.

But when the top 20% of the workforce that accounts for 50% of all consumer spending and 80% of the citizenry’s political voice is in distress, the Power Elites better pay attention.

Nobody in power really cared if lower-income households struggled with juggling childcare and getting to work; but when Mr. and Ms. Technocrat are struggling, suddenly it’s an issue that can’t be ignored.

The same dynamic is also in play in the 21% unemployment that’s accelerating to 25% unemployment. As long as it was the marginal workforce that was losing jobs, the power structure reckoned unemployment was a solution.

But as the unraveling gains momentum, middle-class jobs will start vanishing and unemployment won’t be enough to pay bloated mortgage payments, property tax bills, etc., and the defaults of student loans, credit cards, auto loans and mortgages will start piling up.

As people awaken to the fact that the V-shaped recovery was a fantasy, sentiment will slide from confidence to angst.

The failure of institutions to adapt to new realities will be impossible to deny, and the choices may boil down to opting out (i.e. assemble informal groups of households that pool resources to hire a private tutor for home-schooling their children) to organized revolt (i.e. teachers’ union strikes).

Sclerotic, hidebound institutions optimized for stability and permanent growth are simply not designed to adapt to sudden, rapid change and disruption of permanent growth.

Systems stripped of buffers are fragile, systems stripped of feedback are fragile, systems that optimize doing more of what’s failed spectacularly are fragile, systems that are little more than fractals of incompetence are fragile, systems that rely on the artifice of denial and fantasy are fragile.

Fragile systems break. This is why the unraveling is accelerating.

via ZeroHedge News https://ift.tt/33Crowr Tyler Durden