Can a Federal District Court Appoint A New U.S. Attorney? Can the President fire a U.S. Attorney appointed by a federal court?

On January 30, 2020, Attorney General Barr appointed Timothy Shea as acting U.S. Attorney for the District of Columbia. His appointment took effect on February 3, 2020. (Shea recently made news by filing a motion to dismiss the criminal information against Michael Flynn.) 28 U.S.C. § 546 empowers the Attorney General to “appoint a United States attorney for the district in which the office of United States attorney is vacant.” That position will generally last “120 days.” In early June, that temporary appointment will expire.

To date, President Trump has not made a nomination to fill the vacancy. What happens if no one is confirmed to that position? 28 U.S.C. § 546(d)  provides:

If an appointment expires under subsection (c)(2), the district court for such district may appoint a United States attorney to serve until the vacancy is filled. The order of appointment by the court shall be filed with the clerk of the court.

Can Congress allow courts to make appointments? The Inferior Officers Clause provides, “the Congress may by Law vest the Appointment of such inferior Officers, as they think proper, in the President alone, in the Courts of Law, or in the Heads of Departments.”  And the courts have long held that U.S. Attorneys are “inferior officers.” See Myers v. U.S. (1926) (“Finally, Parsons‘ case, where it was the point in judgment, conclusively establishes for this Court that the legislative decision of 1789 applied to a United States attorney, an inferior officer.”) The Office of Legal Counsel has also concluded that U.S. Attorneys are inferior officers. (This analysis was relevant in discussions about whether special counsel Robert Mueller was an inferior officer.)

Have courts exercised this power under Section 546(d)? Yes. For example, in March 2017, President Trump fired Preet Bharara, the U.S. Attorney for the Southern District of New York. Over the next ten months, Bharara’s deputy, Joon Kim, served as acting U.S. Attorney. In January 2018, Attorney General Sessions appointed Geoffrey Berman as the interim U.S. Attorney. That temporary appointment would run out after 120 days. In April 2018, SDNY selected Berman as U.S. Attorney. He continues to serve in that position. In that role, Berman oversaw the prosecution of Michael Cohen. President Trump has never nominated anyone for the office.

The District for the District of Columbia could select Timothy Shea in the same fashion that SDNY selected Berman. Or it could choose someone else. At Just Security, Melanie Sloan urges the court to choose the latter path.

Because a statute limits the tenure of interim U.S. attorneys appointed by the attorney general, the district court has an opportunity to convey the importance of the impartial administration of justice. Even if the court believes Shea has acted competently and with integrity as interim U.S. attorney, the events surrounding his appointment and the ensuing highly unusual prosecutorial decisions made to benefit the president’s allies undermine public confidence in his leadership and in the office. It is critical that the court demonstrate a commitment to the impartial administration of justice by appointing a qualified, veteran career prosecutor to serve as interim U.S. attorney until a permanent replacement is confirmed by the Senate.

I see two important constitutional questions with this arrangement. First, is 28 U.S.C. § 546(d) constitutional? That is, can a federal district court appoint a U.S. Attorney when the President fails to? Several courts have answered yes.

Most recently, U.S. v. Young (D.N.M. 2008) held that this practice was constitutional. The District of New Mexico held that the District of New Mexico did not violate the separation of powers. (As best as I can tell, the case was not appealed.)

The court explained that there is a longstanding practice in which courts have appointed prosecutors.

In fact, in 1787 no state provided the executive officer unfettered control over the appointment and removal of prosecutors. Myers v. United States (1926) (Brandeis dissenting). Indeed, at the time the Constitution was ratified, and for decades thereafter, several of the original states provided for the appointment of prosecutors by either the judiciary or legislature.3Although the Federal Judiciary Act of 1789 ultimately gave the appointment to the executive, it originally provided for the judicial appointment of United States Attorneys.4 … Indeed, for virtually the entire period since the Civil War,5 Congress, through statutes similar to 28 U.S.C. § 546, specifically authorized the judiciary to fill any interim vacancy in the office of the United States Attorney.

Young urged the court to follow Justice Scalia’s “constitutionally clairvoyant” dissent in Morrison v. Olson. The district court, of course, declined that invitation.

The majority in Morrison, with only Justice Scalia dissenting, clearly sustained the judicial appointment of the independent counsel against a challenge virtually identical to that at bar. In that case, a special division of judges was authorized by Congress to appoint an independent counsel to investigate malfeasance of high level government officials under the Ethics and Government Reform Act. Even though the judges retained the right to oversee several aspects of the independent counsel,7 the Court found no violation of the separation of powers principle.

Indeed, Chief Justice Rehnquist cited 546(d) in Morrison as grounds to uphold the Independent Counsel statute:

The Morrison Court also specifically rejected Defendant Young’s argument that it would be “incongruous” for judges to appoint a prosecutor. The District of Columbia Circuit had invalidated the judicial appointment of the independent counsel on this theory.  In re Sealed Case, 838 F.2d at 494. In reversing the Circuit, Chief Justice Rehnquist, pointed out that “[l]ower courts have also upheld interim judicial appointments of United States Attorneys, … and Congress itself has vested the power to make these interim appointments in the district courts.” Morrison, 487 U.S. at 676, 108 S.Ct. 2597 (internal citations omitted).

Young cites several other courts that reached the same result. For example, U.S. v. Gantt (9th Cir. 1999).

There is a second constitutional question: can the President remove a U.S. Attorney who was appointed by the federal court? Young maintains that the President retains the removal power.

However, nothing in Section 546(d) confers upon district judges any supervisory power over an interim United States Attorney after his appointment. Rather, this supervision plainly remains in the Executive Branch where it has resided for more than a century…  Indeed, the Congress has directed that all litigation in which the United States is involved is under the direction of the Attorney General, 28 U.S.C. § 516, and that the Attorney General “shall direct all United States attorneys, assistant United States attorneys, and special attorneys….” 28 U.S.C. § 519. And it goes without challenge that the power to remove a United States Attorney is vested exclusively in the President, who may exercise that power for any reason… Nothing in the plain language of Section 546(d) grants the district court any power to infringe upon the President’s prerogative and remove an interim United States Attorney after he is appointed. In re Farrow, 3 F. 112, 116 (C.C.N.D.Ga.1880) (predecessor statute authorizing judicial appointment of interim United States Attorney “was not to enable the circuit justice to oust the power of the president to appoint, but to authorize him to fill the vacancy until the president should act, and no longer”). Indeed, the specific language of 28 U.S.C. § 546(d) allows the judicially appointed United States Attorney to serve only “until a presidentially appointed United States Attorney is qualified.”

There is a general principle that the President can only remove those officers he appoints. A person appointed by the Attorney General can only be removed by the Attorney General. (For this reason, President Nixon had to ask three Attorneys General to remove the special prosecutor Archibald Cox; he did not attempt to do so himself)  I think ultimately the President has the power to fire a U.S. Attorney appointed by the courts, but the analysis is more complicated than the District Court here acknowledged.

Of course, President Trump can obviate all of these problems by appointing his own U.S. Attorney. But he has failed to do so. Perhaps those equities should cut against the President’s case. However, cases like Free Enterprise Fund held that the President cannot relinquish his own powers. In other words, the courts cannot punish a President, who fails to use his appointment power, by hamstringing his removal power. The President cannot be estopped from exercising his own constitutional authority. There is no chutzpah exception to Article II.

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Can a Federal District Court Appoint A New U.S. Attorney? Can the President fire a U.S. Attorney appointed by a federal court?

On January 30, 2020, Attorney General Barr appointed Timothy Shea as acting U.S. Attorney for the District of Columbia. His appointment took effect on February 3, 2020. (Shea recently made news by filing a motion to dismiss the criminal information against Michael Flynn.) 28 U.S.C. § 546 empowers the Attorney General to “appoint a United States attorney for the district in which the office of United States attorney is vacant.” That position will generally last “120 days.” In early June, that temporary appointment will expire.

To date, President Trump has not made a nomination to fill the vacancy. What happens if no one is confirmed to that position? 28 U.S.C. § 546(d)  provides:

If an appointment expires under subsection (c)(2), the district court for such district may appoint a United States attorney to serve until the vacancy is filled. The order of appointment by the court shall be filed with the clerk of the court.

Can Congress allow courts to make appointments? The Inferior Officers Clause provides, “the Congress may by Law vest the Appointment of such inferior Officers, as they think proper, in the President alone, in the Courts of Law, or in the Heads of Departments.”  And the courts have long held that U.S. Attorneys are “inferior officers.” See Myers v. U.S. (1926) (“Finally, Parsons‘ case, where it was the point in judgment, conclusively establishes for this Court that the legislative decision of 1789 applied to a United States attorney, an inferior officer.”) The Office of Legal Counsel has also concluded that U.S. Attorneys are inferior officers. (This analysis was relevant in discussions about whether special counsel Robert Mueller was an inferior officer.)

Have courts exercised this power under Section 546(d)? Yes. For example, in March 2017, President Trump fired Preet Bharara, the U.S. Attorney for the Southern District of New York. Over the next ten months, Bharara’s deputy, Joon Kim, served as acting U.S. Attorney. In January 2018, Attorney General Sessions appointed Geoffrey Berman as the interim U.S. Attorney. That temporary appointment would run out after 120 days. In April 2018, SDNY selected Berman as U.S. Attorney. He continues to serve in that position. In that role, Berman oversaw the prosecution of Michael Cohen. President Trump has never nominated anyone for the office.

The District for the District of Columbia could select Timothy Shea in the same fashion that SDNY selected Berman. Or it could choose someone else. At Just Security, Melanie Sloan urges the court to choose the latter path.

Because a statute limits the tenure of interim U.S. attorneys appointed by the attorney general, the district court has an opportunity to convey the importance of the impartial administration of justice. Even if the court believes Shea has acted competently and with integrity as interim U.S. attorney, the events surrounding his appointment and the ensuing highly unusual prosecutorial decisions made to benefit the president’s allies undermine public confidence in his leadership and in the office. It is critical that the court demonstrate a commitment to the impartial administration of justice by appointing a qualified, veteran career prosecutor to serve as interim U.S. attorney until a permanent replacement is confirmed by the Senate.

I see two important constitutional questions with this arrangement. First, is 28 U.S.C. § 546(d) constitutional? That is, can a federal district court appoint a U.S. Attorney when the President fails to? Several courts have answered yes.

Most recently, U.S. v. Young (D.N.M. 2008) held that this practice was constitutional. The District of New Mexico held that the District of Mexico did not violate the separation of powers. (As best as I can tell, the case was not appealed.)

The court explained that there is a longstanding practice in which courts have appointed prosecutors.

In fact, in 1787 no state provided the executive officer unfettered control over the appointment and removal of prosecutors. Myers v. United States (1926) (Brandeis dissenting). Indeed, at the time the Constitution was ratified, and for decades thereafter, several of the original states provided for the appointment of prosecutors by either the judiciary or legislature.3Although the Federal Judiciary Act of 1789 ultimately gave the appointment to the executive, it originally provided for the judicial appointment of United States Attorneys.4 … Indeed, for virtually the entire period since the Civil War,5 Congress, through statutes similar to 28 U.S.C. § 546, specifically authorized the judiciary to fill any interim vacancy in the office of the United States Attorney.

Young urged the court to follow Justice Scalia’s “constitutionally clairvoyant” dissent in Morrison v. Olson. The district court, of course, declined that invitation.

The majority in Morrison, with only Justice Scalia dissenting, clearly sustained the judicial appointment of the independent counsel against a challenge virtually identical to that at bar. In that case, a special division of judges was authorized by Congress to appoint an independent counsel to investigate malfeasance of high level government officials under the Ethics and Government Reform Act. Even though the judges retained the right to oversee several aspects of the independent counsel,7 the Court found no violation of the separation of powers principle.

Indeed, Chief Justice Rehnquist cited 546(d) in Morrison as grounds to uphold the Independent Counsel statute:

The Morrison Court also specifically rejected Defendant Young’s argument that it would be “incongruous” for judges to appoint a prosecutor. The District of Columbia Circuit had invalidated the judicial appointment of the independent counsel on this theory.  In re Sealed Case, 838 F.2d at 494. In reversing the Circuit, Chief Justice Rehnquist, pointed out that “[l]ower courts have also upheld interim judicial appointments of United States Attorneys, … and Congress itself has vested the power to make these interim appointments in the district courts.” Morrison, 487 U.S. at 676, 108 S.Ct. 2597 (internal citations omitted).

Young cites several other courts that reached the same result. For example, U.S. v. Gantt (9th Cir. 1999).

There is a second constitutional question: can the President remove a U.S. Attorney who was appointed by the federal court? Young maintains that the President retains the removal power.

However, nothing in Section 546(d) confers upon district judges any supervisory power over an interim United States Attorney after his appointment. Rather, this supervision plainly remains in the Executive Branch where it has resided for more than a century…  Indeed, the Congress has directed that all litigation in which the United States is involved is under the direction of the Attorney General, 28 U.S.C. § 516, and that the Attorney General “shall direct all United States attorneys, assistant United States attorneys, and special attorneys….” 28 U.S.C. § 519. And it goes without challenge that the power to remove a United States Attorney is vested exclusively in the President, who may exercise that power for any reason… Nothing in the plain language of Section 546(d) grants the district court any power to infringe upon the President’s prerogative and remove an interim United States Attorney after he is appointed. In re Farrow, 3 F. 112, 116 (C.C.N.D.Ga.1880) (predecessor statute authorizing judicial appointment of interim United States Attorney “was not to enable the circuit justice to oust the power of the president to appoint, but to authorize him to fill the vacancy until the president should act, and no longer”). Indeed, the specific language of 28 U.S.C. § 546(d) allows the judicially appointed United States Attorney to serve only “until a presidentially appointed United States Attorney is qualified.”

There is a general principle that the President can only remove those officers he appoints. A person appointed by the Attorney General can only be removed by the Attorney General. (For this reason, President Nixon had to ask three Attorneys General to remove the special prosecutor Archibald Cox; he did not attempt to do so himself)  I think ultimately the President has the power to fire a U.S. Attorney appointed by the courts, but the analysis is more complicated than the District Court here acknowledged.

Of course, President Trump can obviate all of these problems by appointing his own U.S. Attorney. But he has failed to do so. Perhaps those equities should cut against the President’s case. However, cases like Free Enterprise Fund held that the President cannot relinquish his own powers. In other words, the courts cannot punish a President, who fails to use his appointment power, by hamstringing his removal power. The President cannot be estopped from exercising his own constitutional authority. There is no chutzpah exception to Article II.

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Ehret: For Victory Day, It’s Time To Think About Finally Winning WWII

Ehret: For Victory Day, It’s Time To Think About Finally Winning WWII

Authored by Matthew Ehret via The Strategic Culture Foundation,

75 years ago Germany surrendered to allied forces finally ending the ravages of the Second World War.

Today, as the world celebrates the 75th anniversary of this victory, why not think very seriously about finally winning that war once and for all?

If you’re confused by this statement, then you might want to sit down and take a deep breath before reading on. Within the next 12 minutes, you will likely discover a disturbing fact which may frighten you a little bit: The allies never actually won World War II…

Now please don’t get me wrong. I am eternally thankful for the immortal souls who gave their lives to put down the fascist machine during those bleak years… but the fact is that a certain something wasn’t resolved on the 9th of May, 1945 which has a lot to do with the slow re-emergence of a new form of fascism during the second half of the 20th century and the renewed danger of a global bankers’ dictatorship which the world faces again today.

It is my contention that it is only when we find the courage to really look at this problem with sober eyes, that we will be able to truly honor our courageous forebears who devoted their lives to winning a peace for their children, grandchildren and humanity more broadly.

The Ugly Truth of WWII

I’ll stop beating around the Bush now and just say it: Adolph Hitler or Benito Mussolini were never “their own men”.

The machines they led were never fully under their sovereign control and the financing they used as fuel in their effort to dominate the world did not come from the Banks of Italy or Germany. The technologies they used in petrochemicals, rubber, and computing didn’t come from Germany or Italy, and the governing scientific ideology of eugenics that drove so many of the horrors of Germany’s racial purification practices never originated in the minds of German thinkers or from German institutions.

Were it not for a powerful network of financiers and industrialists of the 1920s-1940s with names such as Rockefeller, Warburg, Montague Norman, Osborn, Morgan, Harriman or Dulles, then it can safely be said that fascism would never have been possible as a “solution” to the economic woes of the post-WWI order. To prove this point, let us take the strange case of Prescott Bush as a useful entry point.

The patriarch of the same Bush dynasty that gave the world two disastrous American presidents (and nearly a third had Donald Trump not annihilated Jeb at the last minute in 2016) made a name for himself funding Nazism alongside his business partners Averell Harrimen and Averell’s younger brother E. Roland Harriman (the latter who was to recruit Prescott to Skull and Bones while both studying at Yale). Not only did Prescott, acting as director of Brown Brothers Harriman, provide valuable loans to keep the bankrupt Nazi party afloat during Hitler’s loss of support in 1932 when the German population voted into office the anti-Fascist General Kurt von Schleicher as Chancellor, but was even found guilty for “Trading with the enemy” as director of Union Banking Corporation in 1942!

That’s right! As demonstrated in the 1992 Unauthorized Biography of George Bush, eleven months after America entered WWII, the Federal Government naturally conducted an investigation of all Nazi banking operations in the USA and wondered why Prescott continued to direct a bank which was so deeply enmeshed with Fritz Thyssen’s Bank voor Handel en Scheepvart of the Netherlands. Thyssen for those who are un-aware is the German industrial magnate famous for writing the book “I Paid Hitler”. The bank itself was tied to a German combine called Steel Works of the German Steel Trust which controlled 50.8% of Nazi Germany’s pig iron, 41.4% of its universal plate, 38.5% of its galvanized steel, 45.5% of its pipes and 35% of its explosives. Under Vesting Order 248, the U.S. federal government seized all of Prescott’s properties on October 22, 1942.

The U.S.-German Steel combine was only one small part of a broader operation as Rockefeller’s Standard Oil had created a new international cartel alongside IG Farben (the fourth largest company in the world) in 1929 under the Young Plan. Owen Young was a JP Morgan asset who headed General Electric and instituted a German debt repayment plan in 1928 that gave rise to the Bank of International Settlements (BIS) and consolidated an international cartel of industrialists and financiers on behalf of the City of London and Wall Street. The largest of these cartels saw Henry Ford’s German operations merging with IG Farben, Dupont industries, Britain’s Shell and Rockefeller’s Standard Oil. The 1928 cartel agreement also made it possible for Standard Oil to pass off all patents and technologies for the creation of synthetic gasoline from coal to IG Farben thus allowing Germany to rise from producing merely 300 000 tons of natural petroleum in 1934 to an incredible 6.5 million tons (85% of its total) during WWII! Had this patent/technology transfer not taken place, it is a fact that the modern mechanized warfare that characterized WWII could never have occurred.

Two years before the Young Plan began, JP Morgan had already given a $100 million loan to Mussolini’s newly established fascist regime in Italy- with Democratic Party kingmaker Thomas Lamont playing the role of Prescott Bush in Wall Street’s Italian operation. It wasn’t only JP Morgan who loved Mussolini’s brand of corporate fascism, but Time Magazine’s Henry Luce unapologetically gushed over Il Duce putting Mussolini on the cover of Time eight times between 1923 and 1943 while relentlessly promoting fascism as the “economic miracle solution for America” (which he also did in his other two magazines Fortune and Life). Many desperate Americans, still traumatized from the long and painful depression begun in 1929, had increasingly embraced the poisonous idea that an American fascism would put food on the table and finally find help them find work.

A few words should be said of Brown Brothers Harriman.

Bush’s Nazi bank itself was the spawn of an earlier 1931 merger which took place between Montagu Norman’s family bank (Brown Brothers) and Harriman, Bush and Co. Montague Norman was the Governor of the Bank of England from 1920 to 1944, leader of the Anglo-German Fellowship Trust and controller of Germany’s Hjalmar Schacht (Reichsbank president from 1923-1930 and Minister of Economy from 1934-1937). Norman was also the primary controller of the Bank of International Settlements (BIS) from its creation in 1930 throughout the entirety of WWII.

The Central Bank of Central Banks

Although the BIS was established under the Young Plan and nominally steered by Schacht as a mechanism for debt repayments from WWI, the Swiss-based “Central Bank of Central Banks” was the key mechanism for international financiers to fund the Nazi machine. The fact that the BIS was under the total control of Montagu Norman was revealed by Dutch Central Banker Johan Beyen who said “Norman’s prestige was overwhelming. As the apostle of central bank cooperation, he made the central banker into a kind of arch-priest of monetary religion. The BIS was, in fact, his creation.”

The founding members of the Board included the private central banks of Britain, France, Germany, Italy and Belgium as well as a coterie of 3 private American banks (JP Morgan, First National of Chicago, and First National of New York). The three American banks merged after the war and are today known as Citigroup and JP Morgan Chase.

In its founding constitution, the BIS, its directors and staff were given immunity from all sovereign national laws and not even authorities in Switzerland were permitted to enter its premises.

This story was conveyed powerfully in a 1998 History Channel documentary entitled Banking with Hitler.

A Word on Eugenics

Nazi support in the build up to, and during WWII didn’t end with finance and industrial might, but extended to the governing scientific ideology of the third Reich: Eugenics (aka: the science of Social Darwinism as developed by Thomas Huxley’s X Club associate Herbert Spencer and Darwin’s cousin sir Francis Galton decades earlier). In 1932, New York hosted the Third Eugenics Conference co-sponsored by William Draper Jr (JP Morgan banker, head of General Motors and leading figure of Dillon Read and co) and the Harriman family. This conference brought together leading eugenicists from around the world who came to study America’s successful application of eugenics laws which had begun in 1907 under the enthusiastic patronage of Theodore Roosevelt. Hiding behind the respectable veneer of “science” these high priests of science discussed the new age of “directed evolution of man” which would soon be made possible under a global scientific dictatorship.

Speaking at the conference, leading British Fascist Fairfield Osborn said that eugenics:

“aids and encourages the survival and multiplication of the fittest; indirectly, it would check and discourage the multiplication of the unfitted. As to the latter, in the United States alone, it is widely recognized that there are millions of people who are acting as dragnets or sheet anchors on the progress of the ship of state…While some highly competent people are unemployed, the mass of unemployment is among the less competent, who are first selected for suspension, while the few highly competent people are retained because they are still indispensable. In nature, these less-fitted individuals would gradually disappear, but in civilization, we are keeping them in the community in the hopes that in brighter days, they may all find employment. This is only another instance of humane civilization going directly against the order of nature and encouraging the survival of the un-fittest”.

The dark days of the great depression were good years for bigotry and ignorance as eugenics laws were applied to two Canadian provinces, and widely spread across Europe and America with 30 U.S. states applying eugenics laws to sterilize the unfit. Eugenics’ successful growth was due in large measure to the fierce financial support of the Rockefeller Foundation and the science magazine Nature which had been created in 1865 by T.H. Huxley’s X Club. The Rockefeller Foundation went onto fund German eugenics and most specifically the rising star of human improvement Joseph Mengele.

The Nazi Frankenstein Monster is Aborted

Describing his January 29, 1935 meeting with Hitler, Round Table controller Lord Lothian quoted the Fuhrer’s vision for Aryan co-direction of the New World Order saying:

“Germany, England, France, Italy, America and Scandinavia … should arrive at some agreement whereby they would prevent their nationals from assisting in the industrializing of countries such as China, and India. It is suicidal to promote the establishment in the agricultural countries of Asia of manufacturing industries”

While it is obvious that much more can be said on the topic, the Fascist machine didn’t fully behave the way the Dr. Frankensteins in London wished, as Hitler began to realize that his powerful military machine gave Germany the power to lead the New World Order rather than play second fiddle as mere enforcers on behalf of their Anglo masters in Britain. While many London and Wall Street oligarchs were willing to adapt to this new reality, a decision was made to abort the plan, and try to fight another day.

To do this a scandal was concocted to justify the abdication of pro-Nazi King Edward VIII in 1936 and an appeasing Prime Minister Neville Chamberlain was replaced with Winston Churchill in 1940. While Sir Winston was a life long racist, eugenicist and even Mussolini-admirer, he was first and foremost a devout British Imperialist and as such would fight tooth and nail to save the prestige of the Empire if it were threatened. Which he did.

The Fascists vs Franklin Roosevelt

Within America itself, the pro-fascist Wall Street establishment had been loosing a war that began the day anti-fascist President Franklin Roosevelt was elected in 1932. Not only had their attempted February 1933 assassination failed, their 1934 coup d’etat plans were also thwarted by a patriotic General named Smedley Darlington Butler. To make matters worse, their efforts to keep America out of the war in the hopes of co-leading the New World Order alongside Germany, France and Italy was also falling apart. A As I outlined in my recent article How to Crush a Bankers’ Dictatorship, between 1933-1939, FDR had imposed sweeping reforms on the banking sector, thwarted a major attempt to create a global Bankers’ dictatorship under the Bank of International Settlements, and mobilized a broad recovery under the New Deal.

By 1941, Japan’s attack on Pearl Harbor polarized the American psyche so deeply that resisting America’s entry into WWII as Wall Street’s American Liberty League had been doing up until then, became political suicide. Wall Street’s corporatist organizations were called out by FDR during a powerful 1938 speech as the president reminded the Congress of the true nature of fascism:

“The first truth is that the liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism – ownership of government by an individual, by a group, or by any other controlling private power… Among us today a concentration of private power without equal in history is growing. This concentration is seriously impairing the economic effectiveness of private enterprise as a way of providing employment for labor and capital and as a way of assuring a more equitable distribution of income and earnings among the people of the nation as a whole.”

While America’s entry into WWII proved a decisive factor in the destruction of the fascist machine, the dream shared by Franklin Roosevelt, Henry Wallace and many of FDR’s closest allies across America, Canada, Europe, China and Russia for a world governed by large-scale development, and win-win cooperation did not come to pass.

Even though FDR’s ally Harry Dexter White led in the fight to shut down the Bank of International Settlements during the July 1944 Bretton Woods conference, the passage of White’s resolutions to dissolve BIS and audit its books were never put into action. While White, who was to become the first head of the IMF, defended FDR’s program to create a new anti-imperial system of finance, Fabian Society leader, and devout eugenicist John Maynard Keynes defended the Bank and pushed instead to redefine the post-war system around a one world currency called the Bancor, controlled by the Bank of England and BIS.

The Fascist Resurgence in the Post-War World

By the end of 1945, the Truman Doctrine and Anglo-American “special relationship” replaced FDR’s anti-colonial vision, while an anti-communist witch hunt turned America into a fascist police state under FBI surveillance. Everyone friendly to Russia was targeted for destruction and the first to feel that targeting were FDR’s close allies Henry Wallace and Harry Dexter White whose 1948 death while campaigning for Wallace’s presidential bid put an end to anti-colonialists running the IMF.

In the decades after WWII, those same financiers who brought the world fascism went straight back to work infiltrating FDR’s Bretton Woods Institutions such as the IMF and World Bank, turning them from tools of development, into tools of enslavement. This process was fully exposed in the 2004 book Confessions of an Economic Hit man by John Perkins.

The European banking houses representing the old nobility of the empire continued through this reconquering of the west without punishment. By 1971, the man whom Perkins exposed as the chief economic hit man George Schultz, orchestrated the removal of the U.S. dollar from the Gold-reserve, fixed exchange rate system director of the Office of Management of Budget and in the same year, the Rothschild Inter-Alpha Group of banks was created to usher in a new age of globalization. This 1971 floating of the dollar ushered in a new paradigm of consumerism, post-industrialism, and de-regulation which transformed the once productive western nations into speculative “post-truth” basket cases convinced that casino principles, bubbles and windmills were substitutes for agro-industrial economic practices.

So here we are in 2020 celebrating victory over fascism.

The children and grandchildren of those heroes of 1945 now find themselves attached to the biggest financial collapse in history with $1.5 quadrillion of fictitious capital ripe to explode under a new global hyperinflation akin to that which destroyed Weimar in 1923, but this time global. The Bank of International Settlements that should have been dissolved in 1945 today controls the Financial Stability Board and thus regulates the world derivatives trade which has become the weapon of mass destruction that has been triggered to unleash more chaos upon the world than Hitler could have ever dreamed.

The saving grace today is that the anti-fascist spirit of Franklin Roosevelt is alive in the form of modern anti-imperialists Vladimir Putin, Xi Jinping and a growing array of nations united under the umbrella of the New Deal of the 21st Century which has come to be called the “Belt and Road Initiative”.

Had Prescott’s grandson Jeb (or Prescott’s spiritual grand daughter Hillary) found themselves in the position of President of the USA at this moment, it is unlikely that I would be writing this now, as I’m fairly certain WWIII would have already been launched. However, with President Trump having successfully survived nearly four years of Deep State subversion, and having called repeatedly for a positive alliance with Russia and China, a chance still exists to take the types of emergency actions needed at this moment of existential crisis to do what FDR had always intended, and win World War II.


Tyler Durden

Sun, 05/10/2020 – 00:00

via ZeroHedge News https://ift.tt/2yztyA5 Tyler Durden

“Your Every Move Will Be Watched”: Post-COVID Offices To Resemble China’s Social Credit System

“Your Every Move Will Be Watched”: Post-COVID Offices To Resemble China’s Social Credit System

We recently detailed how when America’s white collar work force returns to their offices, business complexes, and sky scrapers, their experience in the post-COVID ‘reopened’ work space is likely to resemble something more like an airport security check zone, complete with invasive protocols like frequent temperature checks and ‘social distancing’ and health surviellance, as well as Plexiglass eclosed cubicles and HR-style enforcement monitors. 

If all that sounds like a hassle, the WSJ has since taken up the question of America’s near-future office spaces, and the end result looks to be worse than expected. “Your every move will be watched,” the report emphasizes:

In Midtown Manhattan, thermal cameras will measure body temperatures as employees file into a 32-story office tower at Rockefeller Center. The building’s owner, RXR Realty, said it is also developing a mobile app for tenants to monitor — and score — how closely their workers are complying with social distancing.

PricewaterhouseCoopers LLP said it is preparing to launch this month a phone app for employers that traces contacts by analyzing workers’ interactions in the office. More than 50 clients have expressed interest, including some of the nation’s biggest banks, manufacturers and energy companies.

From “Black Mirror”

It sounds like something very close to China’s ‘big brother’ social credit scoring system which made world headlines last year, as it relies on cutting edge facial recognition software designed to permanently store a citizen profile while actively tracking individuals’ public movements. 

There’s already been reported instances of Chinese citizens being prevented from taking trains due to the system forecasting they might not be able to pay, or some other ‘pre-crime’ risks

And now this is getting closer to home, possibly coming to an office near you:

Advertising giant Interpublic Group of Cos . is exploring dividing its 22,000 U.S. employees into three separate groups, according to perceived health risks, which could include age. Workers could be asked to disclose medical and other personal information about themselves and, in some cases, family members…

“It is a reasonable approach, if you can get through the operational and some of the privacy and regulatory issues,” Dr. Ossmann said.

It’s certainly alarming anytime it has to be admitted that “privacy issues” are merely a pesky little something to “get through”. 

There’s already talk of health tracking apps set up on a reward/punishment system of incentives sounding like something straight out of the dysoptian futuristic series Black Mirror.

This would further be integrated with controversial thermal imaging technology – some already set up at Amazon warehouses – capable of storing face recognition data (thought the company promises not to activate the storing software).

And it’s complete with live “guinea pigs” — rather, currently returning office employees, as the WSJ writes of one real estate company

RXR, the real-estate company, is testing new systems on its own employees. “We are using ourselves as the guinea pigs,” RXR’s Chief Executive Scott Rechler said.

The company aims to have its social-distancing app ready at the end of May. Workers’ movements are tracked through their smartphones — you get a higher score the more time in the office you are farther than 6 feet from another person. An individual would see his or her own score, and the employer would see aggregate data on how employees are complying with social distancing as a whole.

Comply or else what?… Yet another reason why employees would have to worry about keeping their jobs. 

Facial recognition system demonstration in China, Getty Images.

And more on labeling broad groups of employees according to perceived COVID-19 risk factors

A worker that tested positive for coronavirus antibodies, indicating they had the infection in the past, would be considered a “Level 1” employee — the lowest risk— and could return to work when states and cities lift work-from-home orders.

Those without antibodies but who are considered a low to moderate risk would count as “Level 2.” This group would include employees who are under 65 years old, don’t live with high-risk people and don’t have chronic diseases including diabetes or hypertension. This group could potentially return to work in a second wave.

Employees over 65, or those who are pregnant, smoke, have chronic diseases or health issues would be considered “Level 3.” These at-risk employees would have to wait the longest to return, Dr. Ossmann said.

We wonder when the initial discrimination lawsuits based on how identifying characteristics are interpreted and assigned would start rolling down hill. 

But again, to see how all of this would actually play out, one need only watch episodes of the Black Mirror. What could go wrong?


Tyler Durden

Sat, 05/09/2020 – 23:35

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

Here’s How To Become A Prepper

Here’s How To Become A Prepper

Authored by Daisy Luther via The Organic Prepper blog,

If the coronavirus has inspired you to become a prepper, you’re not alone. At long last, prepping has become mainstream due to runs on supplies, shortages, and stay-at-home orders throughout the country. More folks than ever before are seeing the wisdom of having extra food and household goods on hand. It can help you through not only disasters and pandemics, but also through personal financial problems.

But delve into most preparedness websites (including this one) and it can start to get overwhelming when you read articles about civil unrest, EMPs, and existential catastrophes. You’ll see articles about guns and outdoor survival and all sorts of things in which you have absolutely no interest.

And more than that, it’s kind of overwhelming. It can make you feel like, “Wow, I will never be able to have a bunker in Montana with 150,000 rounds of ammo. I don’t even know how to build a fire. Why even bother?”

Before we get started with the “how to’s” here are a few things you should know.

All of us started at the beginning.

It’s important to know that all of us started somewhere. We all had some event that awakened us to the need to be better prepared. (To learn how some readers were inspired to get started, go here.) We all had to learn the ins and outs, read the books, and acquire the stuff.

Most of us don’t have thousands of dollars to drop on buckets of food and secondary locations. We began by just getting a few extra things when we could.

It takes some time.

Getting well-prepared doesn’t happen overnight. Even if you have a budget that is relatively unlimited, you will find that it still takes time to figure out what you need, where to get it, and where to store it.

So if you can only afford a few extra things each week, that’s a fantastic place to start. Within a month, you may have an extra week’s food supply doing things that way. Within a year, you’ve got a 3-month supply.

Rome wasn’t built in a day and neither was a prepper’s stockpile.

You don’t have to be of a particular political or religious belief to be a prepper.

A lot of folks think that most preppers are well-to-do white, right-wing Christians. While a lot of preppers do have that in common, there are a lot who do not. We don’t all live on an acreage in the boondocks and raise everything we eat.

If you feel like you don’t fit into the mold, don’t worry because let me tell you a secret: there really is no mold. We have readers of this website from all different kinds of political and religious backgrounds. We have city dwellers and suburbanites. We have folks who live off the land and folks who buy most of their food from the grocery store. We have rich readers and poor readers. We have people coming here from many different countries with many different belief systems. The thing that unites us is that we want to be prepared.

We have people who are involved in prepping for a huge variety of reasons and we, the writers and editors of this site, sincerely welcome anyone who wants to become better prepared for emergencies.

You don’t have to be a tinfoil hat conspiracy theorist to be a prepper.

A lot of folks have this mental image of some wild-eyed guy peering out of the bunker wearing a tinfoil helmet. I’ll grant you that a lot of preppers are mistrustful of the things we hear in the mainstream media. We don’t take things at face value.

But for every prepper who is certain that the New World Order is trying to take over and every event is a false flag, there are preppers who are extremely logical and scientific. There are preppers who are pro-vaccination and anti-vaccination and everything in between.

I guess what I’m trying to say here is that we run the gamut. Don’t let the stereotypes scare you away.

Don’t stay someplace you’re treated badly.

In most of the preparedness world, you’ll be welcomed with open arms. But there are a few websites and forums where you find long-time preppers who are incredibly discouraging. If you run into this issue repeatedly, don’t continue hanging out there. Getting started on a big endeavor is overwhelming enough without people like that making you feel like crap.

Around here we like to help each other with advice and suggestions. Feel free to ask any questions you might have in the comments section and you’ll probably get more than one answer from those who wish to share their knowledge.

We welcome you and we’re glad you’re here. Go here to sign up for our newsletter so you don’t miss a thing.

Now, how do you get started prepping?

Pretty much all of us have recently had a crash course in preparedness with the COVID-19 pandemic. Many people have been sheltering in place in their homes for over a month now and have seen holes in their purchases. Some folks had the unfortunate experience of going out to stock up a little too late, only to find that the shelves were bare of essentials.

An enormous factor that makes just about every disaster worse is panic. When you wait until the last minute, you’re out there with all the other folks who waited until the last minute. Tensions are high and supplies are low. This can create an unsafe situation and can leave people without the things they need to face the event that has them rushing to the store in the first place.

The goal of prepping is to avoid all that.

When you’re prepped, sure, you really want to make one last run to the grocery store or Target, but if it came right down to it and you couldn’t, you’d still be okay. You still have the things on hand that your family needs to survive an event that lasts for a few hours all the way to a few months or even a few years. (And remember what I said above? It takes a while to get to that point.) The information below contains lots of links to articles, PDF guides, and books for topics you may wish to learn more about.

What are you prepping for?

There are all sorts of events people prep for, one of which, obviously, is a massive pandemic and quarantine. Outside of your general supplies, consider prepping for power outages next. Here’s a PDF guide that will help you get ready for blackouts. and here’s an article with some guidelines.

But there are many more things and some will be unique to your area. The Prepper’s Workbook may be helpful in figuring out exactly what’s the most likely for you. Here are some more regional things to prepare for these events are common in your area:

Focus on the things most pertinent to your area. Think about those most likely events and what generally occurs with them: power outages, property damage, a requirement for special shelter, a secondary disaster (like a flood that follows a hurricane, for example).

Who are you prepping for?

Think about all of the members of your family or any loved ones you might be providing shelter for during an emergency. Everyone will have unique needs and wishes. This is why checklists are a great guideline but they don’t encompass everything.

Think about these needs and stock up accordingly:

  • Medications (try to get a month ahead on necessary meds if you can, even if it means paying out of pocket)

  • Special diets

  • Entertainment (what your 2-year-old finds fun and what your 14-year-old finds fun are very different)

  • Picky eaters (I recommend indulging picky eaters if you can – the middle of an emergency is not the time for stress-inducing arguments and familiar foods can help picky folks feel more in control)

  • Baby and toddler needs like diapers and wipes, as well as formula, and baby food if you use it

  • Pet supplies like food, kitty litter, carriers and leashes in case of evacuation, and any medication your pet takes

These are just a few examples of special needs. Spend a couple of days with a notebook and pen close at hand and write down every single thing anyone in your household uses, pets included.

Stock up on water.

Water is near and dear to my heart, so much so that I wrote a book on the topic. (You can find The Prepper’s Water Survival Guide HERE.) I always put water at the top of the list, because without it, you’ll be dead in 3 short days. The need for an emergency water supply isn’t always the result of a down grid disaster. Recently, we tapped into our emergency water when the well pump broke. Some places have had water emergencies when the municipal supply was contaminated by stuff like industrial spills or agricultural run-off. Floods and bad storms can also sometimes cause the water supply to be tainted.

  • Use containers you have RIGHT NOW and fill them with water from the tap. Put the lid on and stash them away. Don’t use milk jugs or juice jugs for drinking water, but you can use them for sanitation water in a pinch. If you can get your hands on some empty, clean 2-liter soda bottles, that will be perfect. We don’t drink soda, so we have some of the 1-gallon water bottles from the store.

  • Buy some filled 5-gallon jugs of purified water.  How much you need should be based on the number of family members. The rule of thumb is 1 gallon per person, per day, but you may find you need a lot more than that when you add in pets and sanitation needs. You may be able to find these less expensively, already filled at the store. When I lived in Canada you could pick up a filled jug for less than $10, but California has all sorts of environmental rules that make these containers more expensive here. Another option is the 7-gallon Aquatainer that is designed for easy stacking. (Be sure to put this in a place where the floor can support the weight of a bunch of heavy water containers.)

  • Have a way to dispense the water from the jugs.  We have a top-loading water dispenser for use in emergencies. These MUST be top loading because the bottom-loading ones require electricity to run the pump.)

  • Get a gravity-fed water filter.  I use a Big Berkey, but it’s a hefty investment when you’re trying to get everything at once. If you can’t swing that, buy Jim Cobb’s Prepper’s Survival Hacks book. It has numerous DIY water filters that you can make without spending a fortune.

Food

Emergency food comes in many different forms. The first thing you have to look at is cooking methods, which we discussed above. The food you choose needs to be able to be prepared using the method you have available now, not the one you plan to get in the future.

Another important note is that your emergency food supply should be nutritious. You won’t want to fill up on empty calories when you may be making greater demands of your body. Keep in mind food restrictions, too, because an emergency situation is bad enough without an allergic reaction or intolerance illness.

There are several different ways to create a food supply.

  • See what you have.  Go through your kitchen cupboards and see what you already have that could be used in an emergency. Things like nut butters, crackers, and other no-cook snacks are great options. Canned foods that only require heating are good as well. Instant rice or noodles can be added to your emergency supply. Group these items together on a special shelf or in a Rubbermaid container so that they are available when you need them. Figure out how long your supply would last your family before you go and purchase more. Figure out what shelf-stable items you need to add to balance out your supply. (Perhaps dried or canned fruit and vegetables, canned meat, jerky, etc., would provide more nutrients and variety.)

  • Build a pantryThis is the best and least expensive way to build a pantry of familiar foods your family already enjoys. Make a list of what you need to feed your family for a month without a trip to the store, and without reliance on long cooking times. (This rules out beans and rice for most people.) Learn more about building a pantry that will see you through a variety of emergencies (including personal financial crises) in my book, Prepper’s Pantry. Also, check out The Prepper’s Book of Lists, a PDF guide you can print off and write on.

  • Emergency buckets. The very fastest way to create an instant food supply is emergency buckets of freeze-dried food, which require only the ability to boil water to prepare. One caveat: do not go with the cheapest thing you can find. Some of those taste absolutely terrible. As well, they’re loaded with unhealthy chemicals and sodium. If you normally eat very healthfully, then move to MSG-laden freeze-dried meals, you’re not going to feel well at all in an emergency. My very favorite brand of emergency food is Legacy Foods. Legacy has standard buckets of survival food, fruits and vegetables, dairy products, and protein. The quality is very good and the meals are tasty when prepared. Keep in mind that these have to be purchased well before the emergency occurs because currently, almost every company is sold out and back-ordered for weeks.

A way to cook your food during a power outage

If the power goes out, how will you cook? You need the ability to boil water, at the very least. If you can boil water, then you can heat up canned food or prepare freeze-dried food in an emergency. Here are some secondary cooking methods, some of which you may already have.

  • Woodstove or fireplace.  If you heat with wood, you’re a step ahead already, at least in the midst of a winter power outage. However, you won’t want to fire up the woodstove to cook in the summer, particularly since you may already be battling the heat without a fan or air conditioner.

  • Gas kitchen stove.  Some kitchen stoves that use gas or propane can be used without electricity while others can’t. (If you’re replacing your stove, this is definitely a quality you’ll want to look for.)

  • Outdoor barbecue. If the weather allows, you can fire up your propane or charcoal barbecue during a power outage and cook your feast outdoors.

  • Rocket stove. There are all sorts of little emergency stoves out there which are designed to boil water quickly and without the use of a great deal of fuel. My favorites are the Volcano 3-way stove and the Kelly Kettle. You can also make an efficient stove. We made one that brought water to boil in less than 4 minutes.

Do not risk using emergency stoves designed for camping, indoors, unless the manufacturer specifically says that it can be used indoors. To do so is to risk fire, smoke damage, or carbon monoxide poisoning.

Sanitation

Another thing that can quickly become dire is personal sanitation. Depending on your situation, you may not have running water or flushing toilets. You need to stock up on supplies to make the best of these situations and keep family members healthy.

  • Baby wipes. You can never have enough baby wipes. Stock up on these for hand-washing after using the bathroom, before and after food prep, and before eating. They can also be used to wipe down surfaces. You can learn more about hand and surface hygiene when there is no running water HERE.

  • Cleaning supplies. You still have to keep your home reasonably clean when there is no running water to help prevent illness and disease. You can find some cleaning hacks HERE.

  • Personal waste plan. You have to have a plan to deal with personal waste when the toilet won’t flush. This article tells you how to make a human kitty litter toilet, a very inexpensive solution to the personal waste issue. Waste must be handled very carefully to avoid the spread of disease and illness.

Here are the items I recommend that you keep on hand for water emergencies:

  • Disposable disinfecting wipes

  • Super absorbent paper towels

  • Basins

  • Baby wipes (These can be used for handwashing and personal hygiene.

  • Your regular spray cleaner (Ours is vinegar and orange essential oil)

  • Kitty litter. This soaks up messes and helps to absorb odor. (If your toilet won’t flush because you’re on a city sewer system, it can also be used as a makeshift toilet. This serious concern  and how to make this toilet is discussed here.)

Heat

If a power outage takes place in the winter, you may need a secondary source of heat.

  • Woodstove or fireplace

  • Propane heater (I recommend the Mr. Buddy brand – it’s safe to use indoors)

  • Kerosene heater

  • Natural gas fireplaces – the fan won’t work but you may be able to thoroughly heat one room with these as long as the gas works.

There are many more options. For a detailed discussion on staying warm during a power outage, check out this article.

Light

Lighting is absolutely vital, especially if there are children in the house. Nothing is more frightening than being completely in the dark during a stressful situation. Fortunately, it’s one of the easiest things to plan for, as well as one of the least expensive.

Some lighting solutions are:

  • Garden stake solar lights

  • Long-burning candles

  • Kerosene lamp and fuel

  • Flashlights (don’t forget batteries)

  • Hand crank or solar lantern

  • Don’t forget matches or lighters

For more information on lighting, check out this article.

Tools and supplies

Some basic items will make your life much easier during an emergency. Here are some things that are essential in the event of a power outage:

  • Lighter/waterproof matches

  • Batteries in various sizes

  • Manual can opener

  • Basic tools: Pliers, screwdriver, wrench, hammer

  • Duct tape

  • Superglue

  • Sewing kit

  • Bungee cords

  • Zip ties

If you’d like to expand on the basic supplies, a more detailed list of tools and hardware can be found HERE.

First Aid kit

It’s important to have a basic first aid kit on hand at all times, but particularly in the event of an emergency. Your kit should include basic wound care items like bandages, antibiotic ointments, and sprays. As well, if you use them, keep on hand a supply of basic over-the-counter medications, like pain relief capsules, cold medicine, cough syrup, anti-nausea pills, heartburn pills, and allergy medication.

Be sure to have a couple of good medical guides on hand. I like this first aid bookthis medical book, and this book of natural remedies.

If you want to put together a more advanced medical kit, you can find a list HERE.

Other Stuff

As you continue along your preparedness journey, you’ll find that there are other items that are very important to you. For example, you’ll want to build a bug-out bag for possible evacuations.

Another book you might like is Be Ready for Anything. It’s a comprehensive guide that covers 12 different disasters and prepping basics in a thorough manner.

And don’t be surprised when this mindset creates within you the itch to be more self-reliant, which means you’ll be adding gardening tools, sewing supplies, woodworking tools,  and other supplies to your stockpile.

You’ve got this!

I know this sounds like a LOT. But remember, you don’t have to do everything today. Break it down into manageable pieces. This gives you a broad overview.

You’re going to do some list-writing, so grab a notebook and pen.

  • Write a master list. Now, based on this article, go through and write a list of the things that you feel are important for your family’s preparedness plan. Include the things that you already have. Organize your list by checking off the things you have.

  • Organize the supplies that you have into “kits”. I have Rubbermaid tubs labeled with the contents for emergency purposes, sorted into kits for things like pandemic supplies, off-grid lighting, batteries and power supplies, etc.

  • Now write a minimalist list of the first things that you must have for survival. Don’t worry if you can’t get everything at once. Start off by covering all of the bases with a skeleton kit that will get you by. This list might include some food that doesn’t require cooking (thus eliminating the immediate need for a secondary cooking method), a way to keep warm, water, a kitty litter toilet, and some baby wipes.

  • Finally, write the big list. This is a list of the things mentioned in the article that you want to own. Make a copy of the list and keep it in your wallet so that if you happen by a thrift store or yard sale, you know what you need. As your budget allows, pick up one or two of these items per week. These may be higher ticket items so don’t worry if it takes you a while to get them. You’ve gotten the bare necessities, so these items will just add to your already sturdy foundation of preparedness.

Don’t panic. Start with your basics in each category and add to it as your time and budget allow.

I mentioned this earlier, but if you want more guidance to get started, here’s a PDF book to help you get prepped no matter where you live: The Prepper’s Workbook. It’s based on a course I used to offer but I think the workbook is a great way to do the exercises with a smaller time commitment and a lower price tag.

If you’d like a place to ask questions and talk with new preppers, you can join our new Facebook group here or visit our forum.

Most of all, welcome. We’re glad that you’ve joined us. You’re going to be ready the next time something like this rolls around without fighting the crowds for those last few rolls of toilet paper.


Tyler Durden

Sat, 05/09/2020 – 23:10

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

One Bank Explains Why QE No Longer Stimulates The Economy And Only Leads To Higher Stock Prices

One Bank Explains Why QE No Longer Stimulates The Economy And Only Leads To Higher Stock Prices

Even some of the most ardent supporters of the fraud that is Keynesian economics now admit the entire modern economic system is on the verge of collapse for one main reason: the marginal utility of debt is collapsing, with ever more debt required to generate an increase in underlying GDP.

And tied to that, is another reason why any day now the current system may be the last: the marginal utility of every new QE is now declining to the point where soon virtually none of the money created by the Fed out of thin air will enter the economy and instead will be stuck in capital markets, resulting in hyperinflation for asset prices even as the broader economy collapses. Or, as BMO’s Daniel Krieter writes, “QE has fed through to the real economy in a slower manner than previous QE campaigns” and for each dollar the Fed’s balance sheet has grown, M1 money supply has increased about $0.32, compared to $0.96 and $0.74 in QE1 and QE2. “The expansionary policy thus far has mostly resulted in increased asset prices”, BMO writes concluding what had been obvious to us and our readers since 2009. Only now we are ten years closer to what is the inevitable endgame, one where the Fed has no impact on M1, which will also be known as the “game over” phase.

But let’s back up.

Traditionally, as BMO explains, we analyze the business cycle from a classical economic perspective where monetary authorities are more passive and “the invisible hand” guides economies (this used to be the case before the Fed went all Politburo on the USSA and decided to nationalize capital markets, crushing any “signal” the bond market may have; the final step will be the launch of Yield Curve Control which will be game over for the market). In this context, we look at interest rates, which can theoretically be defined as the rate that makes the consumer indifferent between consumption today and consumption tomorrow. R* is the (unknowable) natural rate of interest that supports full employment and stable interest rates. In theory, if rr*, consumption saving is preferable and the economy is contracting.

In an expansionary phase, prices and consumption are increasing. Because prices and investment opportunities are high, demand for money among consumers/businesses is high, and interest rates (r) increase alongside borrowing. When r rises to the rate of r*, consumption slows, earnings fall, and a recession ensues. R* falls as uncertainty and risk aversion grow. This is a “business cycle” recession (and as long as the Fed is around, we will never have one of those again as the Fed has now also killed the business cycle… just as the USSR tried to do).

However, a recession can also be caused by some external shock to the economy that produced further declines in r*. This is because r* is reactive to uncertainty with a strong negative correlation. The greater the uncertainty, the lower r* falls.

In recession, r falls as consumption remains low as long as it is greater than r*. Defaults accelerate the drop in r. With the passage of time, r* rises slowly as the uncertainty/risk aversion surrounding the shock and/or end of business cycle fades. However the longer firms go without earnings due to low consumption, the more defaults are realized and the more r drops. At some point, the combination of falling r and rising r* results in r <= r*. Once this happens,  consumption/ investment picks up and the economy enters recovery.

In addition to accelerating declines in r, defaults experienced during recession also lower the cost of labor and capital goods as the resources of failed companies are returned to the economy. In addition, barriers to entry in certain industries fall as “old guard” firms go out of business. Thus, as the economy enters recovery, this combination of cheaper labor/capital goods and lower barriers to entry leads to strong business investment and increases growth potential during the ensuing expansion.

This is how the world works in theory. Unfortunately, since 1913, theory has not worked due to the intervention of the Fed.  So now let’s look at how all this works in reality, and introduce an active central bank with a wider range of monetary policy tools at its disposal.

As the economy cools, the central bank lowers r in an attempt to spur consumption by forcing rRecovery will be less robust due to fewer relative attractive investment opportunities. As Krieter argues, this was the experience of 2001.

Now in 2008, a shock in the form of subprime mortgages hits the economy and uncertainty skyrockets. R* moves into negative territory as shown in a recent San Francisco Fed study. The Fed moves rates lower, but is constrained by the zero bound. In order to further “lower r”, the Fed embarks on asset purchases during QE and is successful in spurring consumption, as evidenced by the strong correlation between increases in excess reserves and increases in M1. M1 is the most basic measure of money supply and includes essentially only cash and checking/demand bank accounts.
The theory is that for a good or service to be consumed, it must be paid for out of M1. Therefore, the increase in M1
following QE is a measure of the degree to which QE results in actual consumption.

Note “lower r” in quotation marks in the previous bullet because r is at the zero bound and cannot (at least in the United States) be lowered further. Therefore QE increases money supply which is meant to spur consumption, which is the same desired effect of lower interest rates. In a sense, money supply increases are synthetic interest rate decreases (and synthetic capital market increases).

The combination of QE-driven consumption (r falling) and fading uncertainty after a trillion dollar fiscal stimulus package (r* rising) ultimately pulls the economy out of recession. However, the pace of response in 08/09 was slower. QE was not announced until late November 2008, after large defaults were already experienced. Fiscal stimulus in the form of the ARRA package didn’t arrive until February 2009 with an additional lag in implementation that featured incremental defaults. In the end, almost a trillion dollars’ worth of debt was affected by default in 2008/09, but QE certainly prevented actual defaults from being likely exponentially greater. BMO notes however that defaults avoided were once again economic resources that were not returned to the economy and barriers to entry that are not lowered. This argues that attractive investment opportunities following the financial crisis were not as abundant as the depth of recession would suggest.

As a result, the recovery was slow, ultimately prompting the Fed to embark on additional rounds of quantitative easing in an attempt to spur increased consumption.

Which brings us to the seeds of the Fed’s own demise: the problem is that QE appears to be experiencing diminishing returns, as evidenced by a falling correlation between excess reserves and M1 in successive episodes of QE following the financial crisis. As QE leads to a direct increase in bank reserves, only a fraction is translated into money supply growth, and thus potentially consumption and investment. QE1 was highly effective and an important factor behind pulling the economy out of recession. QE2 had a marginally lower, but still high, follow through of .735 indicating that on average, $0.74 of each dollar of QE translated to increased money supply. We observe elevated inflation and personal  consumption rates during the period of QE2 as evidence of its effectiveness. However, during Q3, the correlation fell to just $0.28 and resulted in very little inflation of GDP growth. Through this lens, the impact of QE on the real economy has diminished over time.

How does BMO explain the diminishing impact of QE?

  • Diminishing marginal utility of consumption: QE (and monetary policy) is often referred to as “borrowing from the future”. However, there is only a limited amount of future consumption that can be pulled into the current period via monetary policy. This could apply to consumption of durable goods: as rates have been relatively low for a long period of time, demand for credit no longer increases at the same rate with incrementally lower interest rates. At some point, consumption does not bring sufficient to utility no matter how long prices or interest rates are.
  • Wealth disparity: Wealth disparity exacerbates the impact of diminishing marginal utility of consumption. For reasons discussed in further detail below, QE tends to inflate the price of financial assets, making those who own the assets more wealthy. A large percentage of QE money ends up in the hands of the wealthy, whose consumption patterns are unlikely to change in response to a near term increase in wealth.
  • Inflation expectations: Finally, the crux of monetary policy plays on expectations. Inflation is self reinforcing as demonstrated by a very high correlation between inflation and inflation expectations. Around the introduction of QE, there was an expectation that it could spawn runaway inflation. Having been through multiple rounds of QE without a large increase in inflation, people have likely generally come to understand that QE is not likely to result inflation, therefore there is marginally less impetus to consume now.

Following five years of no QE in the United States, it appears the utility of current QE has increased modestly in comparison to QE3. However, the follow through to consumption still remains well below levels experienced between Q1 and Q2. It is likely then that current QE is unlikely spurring much consumption as r isn’t influenced lower (via money supply increase) as much as in the past and likely remains well above r*.

Worse, as we discussed last week, one can argue that r* is likely lower now than potentially any point in history, and according to Deutsche Bank it is at an all time low of -1%.

Not only is uncertainty extremely high, but the impact of COVID-19 arguably directly lowers r*. Recall r can be defined as the rate of interest that makes consumption today indifferent to consumption in the future. In all economic models, r is assumed to be positive. But when people are afraid to their leave their house for fear of infection, future consumption actually is more attractive than current consumption. So r* is arguably negative for fundamental reasons for the first time. Greatly heightened uncertainty only pushes it even further negative.

When money supply goes up, but consumption fails to be generated (because r remains well above r*), then savings rates mathematically increase. Therefore, the prices of financial assets increase generally.

During times of risk aversion, bond prices increase first, but supply of safe assets is limited, especially as the Fed buys a substantial portion of the Treasury market. Investors are therefore pushed into riskier assets. But as long as r remains below r*, the more savings go up, the greater the mechanical move in financial asset prices relative to real economic activity.

This, according to BMO, is what’s driving the paradoxical relationship between bond and equity prices in recent weeks, and explains why stocks are performing so well despite the outlook for the greater economy. Money supply that doesn’t translate into consumption must result in higher financial asset prices until defaults result in wealth destruction.  What does this mean for the recovery? The central bank is displaying reduced capacity to further generate real economic activity as a result of accommodative policy over the past twenty years. This means that recovery is unlikely until r* increases significantly, which only happens alongside fading virus uncertainty. This will take a long time.

During that time, one of two things will happen. Either the government will continue to assist companies in avoiding
bankruptcy, or it will not.
If it does, confidence (and r*) will likely return relatively more quickly at a huge cost to the government. However, there will not be a large return of economic resources at the end of this recession and the ensuing recovery will be disappointing given the degree of economic pain currently being felt.

If it does not, defaults could potentially reach historic proportions, and the recession will be long and painful. However, using the “ripping the bandaid” analogy, this scenario would result in likely the largest return of economic resources in the history of the country and lead to a very powerful economic expansion in the wake of the current recession.

Ultimately, the truth likely lies in the middle. The government will continue to provide relief, though not likely in scale large enough to save all businesses. Defaults and downgrades will be staggering, but this will increase the capacity of growth in the ensuing economic recovery.

What does this mean for risk assets? It means that risk assets are being technically supported by stimulus measures so far, particularly QE that is no longer as effective as it was. However, a large wave of defaults is unavoidable without an unlikely near-term (and complete) solution to COVID-19. Heavy defaults, the kinds described in “Biblical” Wave Of Bankruptcies Is About To Flood The US, will likely bring about another wave of risk asset price weakness as wealth is destroyed and technical upward pressure on financial asset prices and a higher percentage of savings demand is met with safe haven assets (Figure 3).

This also explains why the Fed was compelled to enter the bond market, as absent a direct intervention in the secondary market, bond prices would crater and trigger a self-fulfilling doom-loop, where lower bond prices lead to higher defaults, lead to even lower prices and so on. For now, the Fed has managed to delay this process but there is only so much Powell can do to offset the collapse in fundamentals which will lead to continued ratings erosion, and the eventual defaults of countless companies, many of which the Fed will be directly invested in. At that point, the Fed’s action in the “market” will become the topic of non-stop Congressional hearings, and will culminate with doubts emerging about the viability of the dollar as a reserve currency.

Until this trigger level is reached, however, QE will continues to pose a technical tailwind, influencing financial asset prices higher. This can be sustained until default rates increase, which is likely not until June or later as government stimulus money starts to run dry, and which point assets will likely take another nosedive lower, just as reports of a second coronavirus pandemic result in (most Democratic) states shuttering again ahead of the presidential election.

What happens then? Risk assets will continue to slide into the election and into 2021, at which point as Nordea showed last week, we will hit a point where the lagged effect of the flood central bank liquidity will finally hit into the S&P500, and result in one final explosion in risk assets, sending stocks over 40% higher…

… although not of a benign nature but more of what one would expect to see in the Caracas or Weimar stock market.


Tyler Durden

Sat, 05/09/2020 – 22:45

via ZeroHedge News https://ift.tt/2WK1YI3 Tyler Durden

Bubble-Wrapped Americans: How The US Became Obsessed With Physical & Emotional Safety

Bubble-Wrapped Americans: How The US Became Obsessed With Physical & Emotional Safety

Via Ammo.com,

“In America we say if anyone gets hurt, we will ban it for everyone everywhere for all time. And before we know it, everything is banned.”

Professor Jonathan Haidt

It’s a common refrain: We have bubble-wrapped the world. Americans in particular are obsessed with “safety.” The simplest way to get any law passed in America, be it a zoning law or a sweeping reform of the intelligence community, is to invoke a simple sentence: “A kid might get hurt.”

Almost no one is opposed to reasonable efforts at making the world a safer place. But the operating word here is “reasonable.” Banning lawn darts, for example, rather than just telling people that they can be dangerous when used by unsupervised children, is a perfect example of a craving for safety gone too far.

Beyond the realm of legislation, this has begun to infect our very culture. Think of things like “trigger warnings” and “safe spaces.” These are part of broader cultural trends in search of a kind of “emotional safety” – a purported right to never be disturbed or offended by anything. This is by no means confined to the sphere of academia, but is also in our popular culture, both in “extremely online” and more mainstream variants.

Why are Americans so obsessed with safety? What is the endgame of those who would bubble wrap the world, both physically and emotionally? Perhaps most importantly, what can we do to turn back the tide and reclaim our culture of self-reliancemental toughness, and giving one another the benefit of the doubt so that we don’t “bankrupt ourselves in the vain search for absolute security,” as President Dwight D. Eisenhower warned us about?

Coddling and Splintering: The Transformation of the American Mind

Two books published in 2018 provide parallel insights into the problems presented by the safety obsession of American culture: The Splintering of the American Mind by William Egginton, focused on the tendency of Americans to tunnel themselves off into self-selected bubbles, and The Coddling of the American Mind by Greg Lukianoff and Jonathan Haidt, which deals more with the tendency to avoid any uncomfortable or unpleasant information.

There is an interesting phenomenon involved in coddling: Australian psychologist Nick Haskam first coined the term “concept creep.” Basically, this means that terms are often elastic and expand past the point of meaning. Take, for example, the concept of “trauma.” This used to have a very limited meaning. However, “trauma” quickly became expanded to mean even slight physical or emotional harm or discomfort. Thus the increasing belief among the far left that words can be “violence” – not “violent,” mind you, but actual, literal violence.

In the other direction, the definition of “hero” has been expanded to mean just about anything. Every teacher, firefighter and police officer is now considered a “hero.” This isn’t to downplay or minimize the importance of these roles in our society. It’s simply to point out that “hero” just doesn’t mean what it used to 100 or even 30 years ago.

Once this expansion of a term occurs, there is never any kind of retraction. Trauma now means just about anything, and violence will soon be expanded to include lawful, peaceful speech that one disapproves of. Once this happens, there will be no going back. In the words of Sam Harris:

“We (as a society) have to be committed to defending free speech however impolitic, or unpopular, or even wrong because defending that is the only barrier to violence. That’s because the only way we can influence one another short of physical violence is through speech, through communicating ideas. The moment you say certain ideas can’t be communicated you create a circumstance where people have no alternative but to go hands on you.”

It is extremely dangerous to begin labelling everything as violence for reasons of free speech, but perhaps even more dangerous is the notion that when anything is violence, nothing is violence. Redefining words as “violence” means that we have little recourse for when actual violence occurs.

The Coddling of the American Mind notes some other concepts that are important as we speak of America’s obsession with “safety” above all else. First, that coddling combined with splintering means that people’s political views are much more like fanatical religious views than anything. They don’t see themselves as having to debate ideas or seek common ground. Rather, the opposing side and its proponents are seen as “dangerous” and must be discredited at all costs. It is worth noting that this is much more common among the left than the right or the center, which has now become more the place where “live and let live” types congregate.

The problem with this goes beyond simply being irritated by irrational people barking at you or at someone else: There is an entire generation of people who are seriously lacking in critical thinking skills. They think that labelling people and name-calling are excuses for a reasoned argument. In the words of Voltaire, “Those who can make you believe absurdities can make you commit atrocities.”

These problems are hardly confined to political radicalism or academia. Indeed, the corporate sector is no stranger to this kind of safety obsession. There is the phenomenon of “woke capital,” where the corporations find the latest celebrity cause-du-jour and use it as a marketing strategy.

There is currently an extreme risk aversion in management science. Companies will now do basically anything to avoid “a kid getting hurt” or someone’s delicate sensibilities being offended.

Education from kindergarten up to the universities is increasingly about teaching doctrines and ideology, rather than critical thinking and problem solving skills. All of this is a dangerous admixture that combines the full weight of the academic, cultural and business elites in this country. And its consequences are far reaching.

Trigger Warnings and Safe Spaces

For those unaware, a “trigger warning” is a person’s advisory that disturbing content is going to be posted. However, in an example of concept creep, the meaning of “disturbing” has become expanded to mean, well, just about anything that might offend a leftist. It is also sometimes known as a “content warning,” “TW” or “CW.”

A similar concept is that of a “safe space.” What used to be a term used for a place where people in actual danger of physical harm could express themselves, a “safe space” now means a place where there is no room for disagreement or questions because language is literally violence.

This might all sound very silly and we definitely agree that it is. However, it is quickly becoming de rigeur not just in academia, which is increasingly functioning as a bizarre combination of a daycare center for 21 year olds and an indoctrination program, but also in the corporate world and in the media.

It’s not surprising that such foolishness has reached our corporate elites, because so many figures within that world come from the Ivy League. Harvard Law, for example, was the center of a controversy where they were urged not to teach rape law or even use the word “violate” (which makes it pretty hard to talk about violations of the law). A Harvard professor argued that greater anxiety among students to discuss complicated and nuanced séxual assault cases was impeding the ability of professors to adequately teach their students. This in turn would lead to poorly prepared attorneys for rape victims in the future.

Beyond a simple discussion in the academic sphere, there are student groups on campus who urge students not to attend or participate in class discussions focused on séxual violence. The same student groups advocate for warning students in advance so they can skip out on class and even to exclude “triggering” material from tests. Once again, the real victims here are the victims of séxual assault whose attorneys will be ill-prepared to advise them, to say nothing of the cumulative effect on the prosecutorial environment.

Northwestern University professor Laura Kipnis was subject to a lengthy investigation by a kangaroo court and frivolous Title IX complaints over an article she wrote for The Chronicle of Higher Education about campus séx panics. Top comedians like Chris Rock now refuse to perform on college campuses, a place that has typically been their bread and butter.

Another key term to understand here is “microaggressions” which means just about anything. Offensive statements under this umbrella include things like “I don’t see race,” “America is the land of opportunity” and “I believe the most qualified person should get the job.”

To readers of Generation X or older, this all might sound like a resurgence of political correctness and, indeed, to some extent it is. However, there is something different about the current anti-speech craze sweeping not just campuses, but also boardrooms: Political correctness was, at least in theory, about the elimination of so-called “hate speech” (for example, using “mentally disabled” instead of “retarded” or “little person” instead of “midget”) and also about broadening the canon of literature to include more women and minorities.

One doesn’t need to agree with either objective or be as generous as we are to see that the West has entered a new, accelerated and intensified version of the old political correctness that is qualitatively more dangerous. The “safe spaces” phase of this is about eliminating anything and everything that might be emotionally troubling to students on campus.

This assumes a high degree of fragility among American college students. But perhaps this assumption isn’t totally off base.

The Road to Safety Obsession

If you were born before 1985 or so, your childhood was vastly different than of those born after you. As a child, you probably came and went as you pleased, letting your parents know where you were going, who you would be with and when you might be home. You rode your bike without a helmet and if you were bullied at school there’s a good chance that you view this as a character-building experience, not one of deep emotional trauma.

So what happened?

A few things. First, in 1984, the “missing child” milk carton was introduced. America became obsessed with child abduction in response to several high-profile child kidnappings over the period of a few years. Etan PlatzAdam Walsh and Johnny Gosch are just three of the names known to Americans during this time period. In September 1984, the Des Moines, Iowa-based Anderson Erickson Dairy began printing the pictures of Johnny Gosch and Eugene Martin on milk cartons. Chicago followed suit, then the entire state of California. In December 1984, a nationwide program was launched to keep the faces of abducted children front and center in the American mind.

The milk cartons didn’t find many kids, but they did create the panic of “stranger danger,” where children were taught to fear strangers even though the lion’s share of child abduction, molestation and abuse comes from friends, family and other trusted figures such as public school teachers or camp counselors. Most missing children in America are runaways and in 99 percent of all child abductions, the perpetrator is a non-custodial father. There is at least one case of “stranger danger” being harmful – a lost 11-year-old Boy Scout who thought his rescuers were looking to kidnap him.

Some of the protocols established out of this were useful, such as AMBER Alerts and Code Adam. Awareness of child abduction in general was raised and as a result there’s significantly fewer child abductions today than there were in 1980. Indeed, stranger abduction is incredibly rare in the United States. But this has come with a dark side.

You might be familiar with the myriad of cases in suburban America where children playing alone are arrested by the police because they don’t have adult supervision. The parents are then questioned by the police or, in some cases, the state’s Child Protective Services.

There was also the panic after the mass shooting at Columbine High School, which led to the bubble wrapping of schools alongside the home. “Zero tolerance” policies were implemented alongside school-wide peanut butter bans.

And so the result is that there are at least two generations of American children raised in a protective net so tight that they not only have trouble expressing themselves, but also being exposed to failure and discomfort. What began as a good-faith effort to prevent child abduction and increase overall child welfare has ended up, as a side effect, creating a world where children were raised in such safety that they can’t even handle being upset.

This has not only insulated children from the consequences of their own actions and the normal pains of growing up, but also gives the impression that no matter what their problems, “adults” are ready to step in and save the day at any moment.

It’s worth noting that, in recent years, there has been a sharp rise in mental illness among young people, both on campus and off, including those with severe mental health problems.

Cops and the 24-Hour News Cycle

There are two other cultural phenomena worth exploring: The television series Cops and the 24-hour cable news cycle. As of April 2020, Cops is still on the air, having moved from Fox to Spike TV in 2013.

Cops was more than just a TV series, it was a cultural phenomenon that changed television. The cinéma vérité style used by the show was to be copied in the 90s by virtually every reality show you can name. Curiously, it came out around the same time that crime rates had plummeted comparatively to the 70s and 80s. And just at that time, people started having the worst in human behavior beamed into their homes for entertainment every Saturday night.

At the same time, CNN was bringing news into your home 24 hours a day without end. This meant they had to fill programming around the clock – and most news is bad news. So in addition to a hugely popular program centered around chasing criminals in the act, Americans also had a constant stream of bad news and dangerous events pumped into their homes. The result was the end of the “free range child,” the kind who learned through play and discovered risk management through trial and error. This was replaced with children whose entire existence was micromanaged by adults, with little to no unsupervised play time.

The ability to learn through failure is a well-established principle going back to the Greeks, who called it pathemata mathemata (“guide your learning through pain”). The knowledge and wisdom gained through failure and pain are arguably more lasting and valuable than those learned in school.

The Generation Gap: Millennials and Gen Z

Older generations (Generation X and Baby Boomers) have a tendency to conflate Millennials and Gen Z (also known as “Zoomers”). However, there are two key differences, one cultural and one clinical: First, Zoomers are much more digital natives than their Millennial counterparts. They didn’t get constant internet access or mobile access at college. They’ve had it since they were in middle school in many cases.

While this is bound to create secondary cultural differences, we know of one clinical difference between Millennials and Zoomers: Zoomers are much more prone to mental illness, specifically depression, anxiety, alcoholism and self-harm.

Depression and anxiety in particular are through the roof for girls, with moderate increases for boys. While self-reported cases are up, we also have harder clinical data: There has been a 62 percent increase in hospital admissions.

The Baby Boomers and Gen Xers created an environment where it is safer than ever to be a child, but at what cost? There has been widespread and verifiable psychological damage done to the younger generation, which is likely being compounded by the coddling taking place in our nation’s universities.

Screen Time and Social Media

“Screen time” is the new obsession for parents, especially among, ironically, those who work in high-tech Silicon Valley jobs such as Steve Jobs, father of the iPhone. But there seems to be an emerging consensus among those who have actually studied the topic that the problem isn’t “screen time” per se, but rather the more specific use of it in the form of social media. This has been identified as the cause of depression and anxiety, particularly among girls.

Why is social media usage particularly impactful among girls? Dr. Haidt and others postulate that it’s because they are more sensitive to the “perfect” lives being lived by beautiful social media influencers – at least the lives that they lead online. What’s more, there is a lot of exclusion and bullying taking place on social media. In days past, you only heard about the party you didn’t get invited to, but now you get to watch it unfold in real time on Snapchat or other platforms. And cyberbullying is much harder to track and police than its real world equivalent.

There’s a related bubble wrapping going on with regard to a different sort of screen time: Kids today are often forbidden from playing with plastic guns or even finger guns. There is the notorious case of the 7-year-old child who was suspended for biting a Pop Tart toaster pastry into the shape of a gun. But millions of children come home (from the same schools where finger guns can warrant a suspension) to play Grand Theft Auto for hours on end.

Indeed, there is some evidence that suggests that violent movies and video games can trigger violent thoughts in some, but not all, people who view them. The National Institute of Mental Health has done an extensive study detailing the impact that violent media has on those who view it.

A Nation Divided

There’s not much hyperbole in saying that America is barely a single nation anymore. We talk about “red states” and “blue states,” but the divide is much deeper than that. Even the coastal states largely have an urban college-educated Democratic population and a rural non-college-educated Republican population.

While some animosity between different areas of the political spectrum, or even resentment of cities by the countryside and vice versa, is nothing new, the rancor took off sharply in the early 2000s following the controversial election of George W. Bush and his expanded imperial presidency after 9/11.

Social media makes it easier for extremes to amplify their anger. What’s more, it’s much easier for people to become part of an online crusade – or witch hunt – than it is for them to do so without it.

This is a big part of what is behind the string of disinvitations and protests on American college campuses. No one, especially young people (where “young” means “under 30”), can bear to listen to the opinions of someone they don’t agree with. Disinvitations aren’t limited to highly controversial figures like MILO and Richard Spencer, or even the decidedly much more vanilla Ann Coulter. Condoleeza Rice, the first black female Secretary of State, was disinvited in 2014, as was the first female head of the IMF and the first female finance minister of a G8 nation, Christine Lagarde.

Because Americans increasingly refuse even to listen to arguments from the other side, inserting instead a strawman in favor of reasoned debate, there is no reason to believe that the American political and ideological divide will not increase.

The Evolution of Victimhood Culture

America and the West have largely adopted a victimhood culture. It is worth taking a minute to trace this radical transformation of values in the West from its origins.

The earliest societies in the West were honor cultures. While it sounds like a no-brainer that we should return to an honor culture, we should unpack precisely what this means. An honor culture usually means a lot of interpersonal violence. Small slights must be dealt with through dead violence – because a gentleman cannot take any kind of stain on his honor. Dueling and blood feuds are common in these kinds of cultures.

This is superseded by dignity culture. Dignity culture is different, because people are presumed to have dignity regardless of what others think of them. In a dignity culture, people are admired because they have a “thick skin” and are able to brush off slights even if they are seriously insulting. While we might find ourselves offended, even rightfully so, it is considered important to rise above the offense and conduct ourselves with dignity. Everyone heard some variant of “sticks and stones may break my bones but words will never hurt me” growing up as a child. This is perhaps the key phrase of a dignity culture.

Victimhood culture is concerned with status in a similar manner to honor culture. Indeed, people become incredibly intolerant of any kind of perceived slight, much in the manner of an honor culture. However, in a victimhood culture, it is being offended, taking offense, and being a victim that provides one with status.

Victimhood culture means that people are divided into classes, where victims are good and oppressors are bad. There is an eternal conflict with eternal grievances that can never fully be corrected or atoned for. People feel the need to constantly walk on eggshells and censor themselves. This leads to an overall emphasis on safety, as even words become “violence” – we need trigger warnings and safe spaces to protect us.

Victimhood culture is closely associated with safety culture. Safety culture is, above all else, debilitating. Those who choose a marginalized identity – and in the contemporary West, a marginalized identity is almost always a choice – become more fragile and more dependent on the broader society. At the same time, the powerful elements in society gain a stake in reinforcing this marginalized identity. The Great Society provides a case study in this dynamic.

Those who do not receive the so-called “benefits” of safety culture are frequently more prepared for the real world. Who would you rather hire? Someone who studied hard in a rigorous discipline for four years or someone who spent four years being coddled in what is basically a day care center for twentysomethings? With this in mind, it’s not too big of a leap to see that straight white men might actually have become “privileged” through the process of not having access to the collective hugbox in higher education.

The Role of Lawyers and Litigation

There is a relationship with the litigious society in which we live with warning labels everywhere, often for hazards that would seem incredibly obvious to most observant people. In previous generations, even power tools didn’t come with warnings to roll your sleeves up or take off your watch. This information was either common sense or passed along in high school shop classes or on the job.

However, the American legal system has no penalty for frivolous lawsuits, which has led to an explosion in the number of lawsuits. There is a massive army of lawyers in the United States (which has a surplus of some 40 percent) whose profession revolves around finding aggrieved parties who weren’t properly “warned” – or indeed to be able to help write the warning labels themselves. These labels do not even exist for actual safety. The same type of person who is going to do the thing being warned against is likely the same type of person who doesn’t read warnings. The labels are simply there as a form of “CYA” for the firms who make them.

That said, to a certain degree, the “litigious society” is a myth. The oft-cited McDonald’s coffee burn is actually more reasonable than people are aware: The elderly woman in question who was burned simply wanted McDonald’s – who kept their coffee extra hot to prevent people from taking part of their “free refills” policy – to pay for her skin graft resulting from the burn. When McDonald’s refused to settle this out of court and the case went to trial, they were rewarded for their efforts at stonewalling with punitive damages.

So the main example of frivolous lawsuits is a big strawman. But to be clear – frivolous lawsuits are real. One great example of an actually frivolous lawsuit was the man who sued his dry cleaner for $67 million because they delivered his pants to the wrong person. There was no actual damage here and it’s difficult to express just how ridiculous the dollar figure claimed was. This case was thrown out of court, as most of these types of cases are. Still, litigants pursue them either to get media attention or to harass the defendant or both, a phenomenon known as “lawfare.” And these cases clog up genuine claims in the courts.

Civil trials are long and drawn-out things. And with 40 million of them in the United States every year and over a million lawyers, it’s unsurprising that the system has become clogged with lawsuits, many of which are either totally frivolous (remember – there’s no penalty for filing a frivolous lawsuit in America) or just the type of thing that should be either settled or handled through binding arbitration.

While the litigious society exists in parallel to the “safe spaces” of college campuses, it is worth noting because it is part of the larger bubble wrapping of the American landscape. The same kids who were raised with helicopter parents and a general sense that they had a “right” to never be offended were likewise raised in an environment where people could be sued for anything or, at the very least, this was the public perception. It is just another factor of risk aversion in American life.

There are other consequences of having too many lawyers around and having them congregate within our political class: Words are chosen to obfuscate and laws proliferate, as legislation becomes a sort of “jobs program” for lawyers. The more laws we have, the less free we are and the less social trust we have. As laws, regulations, and agencies take the place of civil society, the state grows at the expense of everything else and the less trust we have in our society.

Overreacting to the Wuhan Coronavirus

In 2020, the Wuhan Coronavirus broke out of China and spread all around the world. The world had not seen a deadly, contagious virus with such scope since the Spanish flu pandemic of 1918 to 1920. At first, the response was denial and apathy. However, this quickly gave way to what could be considered a massive overreaction: Shutting everything down.

There was a certain logic to this: If people gathering together were what was spreading the virus, then simply keep people apart until the whole thing blows over. However, this is also potentially a huge overreaction. It is a medical solution in the driver’s seat without any nod to the economic, social or military consequences that flow from it. Even if one agrees that medical solutions are to be the primary driver, it does not follow that they are the only driver.

Because of the lopsided and often hysterical reaction, many of the proposed solutions don’t even make sense: For example, telling everyone they can go to the supermarket while prohibiting them from going to small offices, or shutting down the border between the United States and Canada – two countries with highly infected populations and a sprawling border that is largely unpatrolled.

A brief disclaimer: None of us are epidemiologists or virologists. And we defer to their superior knowledge on this subject.

However, during the Spanish flu pandemic, life did not shut down quite so completely as it has during the Coronavirus pandemic. The methods used during the Spanish flu were isolation of the sick, mask wearing in public, and cancellation of large events. In places where these were practiced rigorously, there was a significant decline in the number of infections and death. St. Louis in particular is known as an exemplar of what to do during an easily transmissible epidemic.

“The economy” has been cited as a reason the total shutdown of life during the Coronavirus pandemic was a poor idea. This might sound frivolous, but the mass unemployment not only leads to destitution for those when the economy is so paralyzed that there are no other jobs forthcoming. It also leads to a spike in the suicide rate. There is a certain calculus that must be done – how much unemployment is worth how much death from Wuhan Coronavirus?

The reaction to this virus is noteworthy, because it is the first major pandemic of this new, insulated and coddled age. Rather than reasonable measures to mitigate death, the choice made was to do anything and everything possible to prevent death entirely. Not only might this be an unwise decision, it might be a fool’s errand: The virus seems to be much more contagious than was previously thought, as well as much less lethal.

More than one reasonable person has asked what would happen if we all just went about our lives making reasonable precautions, such as hand washing, mask wearing, social distancing, and the cancellation of large events like sports and concerts. This is effectively what Sweden has done and it appears to work, especially when contrasted with their neighbors in Finland who have done basically the same as America. How much sense does it make to have the entire community converge upon its grocery stores while not allowing anyone to go into an office, ever? Compare this with what has passed for reasonable reaction: Closing down every school, every dine-in restaurant, and the government dictating which businesses are essential and which aren’t.

A big motivator of this is a compulsion to not lose a single life to the Wuhan Coronavirus, which is a totally unreasonable goal. People are going to die. The question isn’t “how tightly do we have to lock the country down to ensure no one dies,” but rather “what are reasonable measures we can take to balance public safety against personal choice and social cohesion?”

The splintering and division of America in practice has meant that the establishment conservative media was largely in denial over the virus for weeks. It is not a liberal smear to say that the amount of denialism from establishment conservative media, pundits, think tanks, bureaucrats and elected officials has in practice meant that America responded much more slowly and conservatively than it might have with a more unified America body politic.

At the beginning of spring 2020, the virus seemed poised to devastate the American South, which largely stuck with the early conservative media denialism, eschewing social distancing, shuttering of certain public places and mask wearing. Again, a more united body politic and the media and trust in the media that goes along with that might have prevented a lot of illness and death.

Imagine the impact of Walter Cronkite or Edward Murrow going on television and telling the American public to mask up and maintain distance versus the impact of Rachel Maddow and Tucker Carlson doing it.

What Is Vindictive Protectiveness?

“Vindictive protectiveness” was a term coined by Haidt and Lukianoff to describe the environment on America’s college campuses with regard to speech codes and similar. However, it can refer more broadly to the cultural atmosphere in the United States and the West today. From the college campus to the corporate boardroom to the office, Americans have to watch what they say and maybe even what they think lest they fall afoul of extra-legal speech and thought codes.

Perhaps worst of all, an entire generation is being raised to see this not only as normal, but as beneficial. This means that as this generation comes of age and grows into leadership positions, that there is a significant chance that these codes will be enforced more rigorously, not less. And while there may be ebbs and flows (political correctness went into hibernation for pretty much the entire administration of George W. Bush – though to be fair, there was an imperfect replacement in the form of post-9/11 jingoism), the current outrage factory is much more concerning than the one that sort of just hung around in the background in the 1990s.

Put plainly: the next wave will be worse. We may not have Maoist-style Red Guards in America quite yet, but we’re not far off and the emphasis should be on “yet.”


Tyler Durden

Sat, 05/09/2020 – 22:20

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Some 5,000 People Waiting Out COVID-19 In Frozen, Virus-Free Antarctica

Some 5,000 People Waiting Out COVID-19 In Frozen, Virus-Free Antarctica

Antarctica is currently deemed the “safest place in the world” due to it being the only continent with no confirmed COVID-19 cases. 

Its dark, frozen, and harsh environs keep it cut off from the outside world, apart from researchers, scientists, and the occasional explorer or National Geographic team.

A new CNN report counts some 5,000 total people at over 80 international bases scattered across Antarctica, who are currently waiting out the pandemic in the remote location and intentionally not returning home until the crisis abates

Stijn Thoolen, a researcher with the European Space Agency has been in Antarctica since November watching the pandemic unfold in the rest of the world, via EPA/ABC News.

One American researcher, Keri Nelson, at the US base Anvers Island’s Palmer Station in a northern part of Antarctica told CNN via email: “I really don’t think there’s a person here right now who isn’t grateful to be here, and to be safe.”

“Some people are ready to head back home. To help people they love, and to be of use in other ways during this time in history,” Nelson added. “But all of us are very appreciative to be living in a place where this disease (and all of the health and lifestyle implications thereof) are absent.”

And further, a 29-year old researcher from Scotland, Robert Taylor, described: “It’s like being on the moon and looking down,” CNN reports. “We can see what’s going on, but it’s a long way away.”

Image via Swoop Antarctica 

He arrived at a British station on the icy continent months before the crisis first emerged in Wuhan, China:

“I remember the reports coming out of China in early January,” says Taylor, who arrived in Antarctica around six months ago.

“Then the first few UK cases, and thinking that this was something minor and far away, that wouldn’t affect me.”

“It dawned on me gradually, as it spread and grew in prominence in the media.”

Antarctica actually in normal times sees a regular annual influx of tourists, mostly via cruise ships and adventure excursion tours.

Long-term ecological research center, Palmer Station in Antarctica, via IPF.

For example 56,168 tourists visited during the 2018 to 2019 season, however, at this point the only people that remain are the thousands of professional researchers and surveyors who will for the time being remain physically cut off from the world. 

This also considering that to get back they would have to risk traveling back to their homes via multiple international airports and other travel hubs.


Tyler Durden

Sat, 05/09/2020 – 21:55

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Libertarian Party To Choose Its Presidential Ticket in Virtual Vote Over Memorial Day Weekend

The Libertarian Party’s National Committee (LNC) decided by a 13–4 vote today, after a tortuous 8-hour Zoom meeting, to divide the party’s convention business into two parts.

The first will be an online meeting over the same Memorial Day weekend during which the scotched in-person convention was supposed to occur in Austin, Texas. At this online meeting, “nomination and balloting for party candidates for President and Vice-President” will occur.

Then a follow-up physical convention will be held in Orlando, Florida, from July 8–12. While the LNC did not formally commit yet to a contracted venue, they received a presentation from the Rosen Shingle Creek resort that seems to be a favorite.

The realities of the pandemic led the original convention hotel to cancel the party’s reservation. Some expected that last Saturday the LNC would commit to a non-physical option, but instead, they voted to give themselves another 10 days to set up an alternate physical convention to occur before July 15.

Lots of debate stormed in the week between about parliamentary, legal, and physical possibilities and impossibilities. That debate continued during today’s marathon LNC meeting.

Some insisted the word “place” in the party’s bylaws (Article 10), had to mean a physical place, and thus conducting official convention business online would violate those bylaws. A vast amount of time today was spent on the metaphysical question of “what is a place?” and the proper reasonable meaning of “impossible.”

Others insisted that Robert’s Rules of Order was making new adjustments for the pandemic reality of electronic meetings; some argued that regardless of whether some electronic meetings are allowed under Robert’s, Article 12 of the party bylaws did mention that “Boards and committees may conduct business by teleconference or videoconference.” Yet! Article 10 did not specify that a convention could. Some believed that not mentioning virtual specifically as possible for conventions meant such online conventions were prohibited.

Some believed that if Robert’s Rules and the Libertarian Party bylaws prevented the organization from performing the very purposes that bylaws and Robert’s Rules are supposed to help with (not prevent), such stringent interpretation was perverse and unnecessary. Some mocked the idea that any available physical place could possibly hold nearly 1,000 people and conduct business with safe social distancing, but Orlando’s Rosen Shingle Creek thinks it can.

Some worried, during the meeting and in online chatter, that the progress of the law or the pandemic might make the party have to eventually cancel the in-person portion in July later anyway. Many also worry that the combination of the pandemic and the presidential vote having already occurred will encourage lots of would-be delegates to not show up in Orlando even if an in-person event does happen, leaving whoever wins the party officer positions (and other issues settled) at that in-person convention under a shadow moving forward.

Lots of back and forth happened today about whether it mattered much that it was merely difficult or inadvisable for people to travel to an in-person convention during a pandemic; after all, there is always some reason a delegate a state party picked might not make it to the actual convention. Some thought it made the party look criminally irresponsible to encourage 1,000 people to travel across the country to descend on a city, then scatter; some thought it made them look like they were kowtowing to tyrannical fears and supportive of shutting down American business to not do that.

Outgoing LNC chair Nicholas Sarwark (he is not running for re-election) said in a phone interview before the meeting that he believed “the best [thing] for the party to do would be to set the national convention for Saturday and Sunday of Memorial Day weekend” (to honor the commitments of time already made by delegates), but hold it “in an online venue like Zoom, and have prepared a motion to modify the convention agenda” to move most convention business outside “LNC, judicial, presidential, and vice-presidential elections” to some later, potentially in-person convention, since most other business and motions would be difficult to do online. This is more or less what happened, though today’s recommendation has LNC and judicial votes pushed to the later in-person meeting.

Daniel Hayes, head of the convention oversight committee, said in a phone interview before the meeting that an in-person convention was vital for media attention; this is likely so, though shifting the presidential vote into the virtual earlier convention likely will drain some media interest from the physical followup. Out of an abundance of caution over whether some entity might later decide the decision of a virtual presidential vote was technically against the rules, the outcome of the Memorial Day online vote will need to be ratified by the July in-person convention.

LNC Secretary Caryn Ann Harlos was one of the leading voices, at first, for an in-person convention only, but was key in offering a version of the “presidential vote electronic, rest in person later” compromise. Overarchingly, she thinks talk of evading inconvenient bylaw interpretations for whatever reason is violating the “contract with members,” since she sees the bylaws as a contractual agreement the LNC has made with the party’s members.

Harlos thinks, though, that since their very purpose as a party is to run national candidates, a compromise that allows that and only that business to be done electronically was acceptable, as waiting much longer would conflict with certain state’s ballot access deadlines. However, she believes “merely being scared of a virus” was not a good enough reason to mess around with the bylaws’ clear language.

The LNC has been experimenting this week with Zoom meetings that emulate the functions of a normal convention, though some participants have found them lacking, subject to both technical glitches and giving presiding officers more power to control how delegates can communicate than in an in-person meeting.

The LNC doesn’t have the power to tell the actual delegates assembled that they can only do specific things at a convention, so the choice to only do the presidential vote at whatever electronic meeting commences will ultimately have to be made by the convention body itself.

Rep. Justin Amash (L–Mich.), the newly minted Libertarian congressman who is certainly a frontrunner, if not now the frontrunner, for the party’s presidential nomination said in an interview with The Fifth Column podcast this week (starring Reason‘s Matt Welch) that “For my part…I want every candidate to feel that they got a fair shot, including our campaign. We all want to be treated fairly under this process and that’s what’s important, that nobody feels like this was some kind of a setup one way or the other either for my candidacy, or against my candidacy, and every other candidate feels the same way about their own campaign.” Amash added, “I think it’s important that we not postpone it too late because if you postpone it too long, it makes the calendar more challenging and we want to make sure we get on the ballot in all these states too….A campaign has to get up and running and it would be better if it doesn’t go all the way to July or something like that.”

The matter is important because some state ballot petitioning rules require the actual named candidate, so the later the candidate is named, the harder it will be to meet those requirements. Candidate Jim Gray, former California Superior Court judge and former Libertarian vice presidential candidate in 2012, said in a phone interview this week that while it “would be much more preferable to have an in-person convention, for our campaign, for the party, for the country, since there will be less excitement and less give and take [likely online]—having said that, it’s a tradeoff.” If waiting for a reasonably safe and doable face-to-face meeting “would likely result in us losing ballot access in too many states,” then he understands.

Joe Bishop-Henchman, a candidate for LNC chair this year and a leader in the “online presidential vote” faction said in a phone interview before the convention that he worried if the party didn’t settle its presidential candidate question sooner rather than later that some state party affiliates might see it necessary to “defy [the national party] and go it alone.” In that case, he would not “hold it against them,” but he thinks the compromise reached today will “prevent that from happening, the danger of different presidential tickets in different states.”

While this question was not settled, many on the LNC seemed to think that if certain state delegations were prohibited by their own state’s travel restrictions from making it to Orlando, some allowance would likely be made by the delegates at that convention to allow them to participate in votes and debates virtually.

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Kentucky Governor’s Order Violates Free Exercise Clause as to In-Person Worship Services

In today’s Roberts v. Neace, Sixth Circuit Judges Sutton, McKeague, and Nalbandian, granted an injunction pending appeal of a case challenging the Kentucky Governor’s shutdown order, as applied to in-person worship services. And in the process the panel concluded that the order likely violates the Free Exercise Clause, because it treats religious worship services worse than many exempted activities, including “typical office environments.”  The court concludes that the petitioner is entitled to conduct an in-person service tomorrow, though the state can impose the same social distancing requirements on it as it does on exempt entities:

Governor Beshear has issued two pertinent orders arising from the COVID-19 pandemic. The first order, issued on March 19, prohibits “[a]ll mass gatherings,” “including, but not limited to, community, civic, public, leisure, faith-based, or sporting events.” It excepts “normal operations at airports, bus and train stations, … shopping malls and centers,” and “typical office environments, factories, or retail or grocery stores where large numbers of people are present, but maintain appropriate social distancing.”

The second order, issued on March 25, requires organizations that are not “life-sustaining” to close. The order lists 19 broad categories of life-sustaining organizations and over a hundred sub-categories spanning four pages. Among the many exempt entities are laundromats, accounting services, law firms, hardware stores, airlines, mining operations, funeral homes, landscaping businesses, and grocery stores. Religious organizations do not count as “life- sustaining,” except when they provide “food, shelter, and social services.” …

The Governor’s restriction on in-person worship services likely “prohibits the free exercise” of “religion” in violation of the First and Fourteenth Amendments. On one side of the line, a generally applicable law that incidentally burdens religious practices usually will be upheld. On the other side of the line, a law that discriminates against religious practices usually will be invalidated because it is the rare law that can be “justified by a compelling interest and is narrowly tailored to advance that interest.”

These orders likely fall on the prohibited side of the line…. [A] law might appear to be generally applicable on the surface but not be so in practice due to exceptions for comparable secular activities. See Ward v. Polite, 667 F.3d 727, 738 (6th Cir. 2012); see also Fraternal Order of Police Newark Lodge No. 12 v. City of Newark, 170 F.3d 359, 365-67 (3d Cir. 1999)….

[T]he four pages of exceptions in the orders, and the kinds of group activities allowed, remove them from the safe harbor for generally applicable laws[.] … As a rule of thumb, the more exceptions to a prohibition, the less likely it will count as a generally applicable, non- discriminatory law. “At some point, an exception-ridden policy takes on the appearance and reality of a system of individualized exemptions, the antithesis of a neutral and generally applicable policy and just the kind of state action that must run the gauntlet of strict scrutiny.”

The Governor insists at the outset that there are “no exceptions.” But that is word play. The orders allow “life-sustaining” operations and don’t include worship services in the definition. And many of the serial exemptions for secular activities pose comparable public health risks to worship services. For example: The exception for “life- sustaining” businesses allows law firms, laundromats, liquor stores, gun shops, airlines, mining operations, funeral homes, and landscaping businesses to continue to operate so long as they follow social-distancing and other health-related precautions. But the orders do not permit soul-sustaining group services of faith organizations, even if the groups adhere to all the public health guidelines required of the other services.

Keep in mind that the Church and its congregants just want to be treated equally. They don’t seek to insulate themselves from the Commonwealth’s general public health guidelines. They simply wish to incorporate them into their worship services. They are willing to practice social distancing. They are willing to follow any hygiene requirements. They do not ask to share a chalice. The Governor has offered no good reason for refusing to trust the congregants who promise to use care in worship in just the same way it trusts accountants, lawyers, and laundromat workers to do the same.

Come to think of it, aren’t the two groups of people often the same people—going to work on one day and going to worship on another? How can the same person be trusted to comply with social-distancing and other health guidelines in secular settings but not be trusted to do the same in religious settings? The distinction defies explanation, or at least the Governor has not provided one.

 

No doubt, some groups in some settings will fail to comply with social-distancing rules. If so, the Governor is free to enforce the social-distancing rules against them for that reason and in that setting, whether a worship setting or not. What he can’t do is assume the worst when people go to worship but assume the best when people go to work or go about the rest of their daily lives in permitted social settings. We have plenty of company in ruling that at some point a proliferation of unexplained exceptions turns a generally applicable law into a discriminatory one. See, e.g., Tenafly Eruv Ass’n v. Borough of Tenafly, 309 F.3d 144, 165-70 (3d Cir. 2002); Fraternal Order of Police, 170 F.3d at 365; see also Cent. Rabbinical Cong. of U.S. & Can. v. N.Y.C. Dep’t of Health & Mental Hygiene, 763 F.3d 183, 196-98 (2d Cir. 2014).

We don’t doubt the Governor’s sincerity in trying to do his level best to lessen the spread of the virus or his authority to protect the Commonwealth’s citizens. See Jacobson v. Massachusetts (1905). And we agree that no one, whether a person of faith or not, has a right “to expose the community … to communicable disease.” Prince v. Massachusetts (1944). But restrictions inexplicably applied to one group and exempted from another do little to further these goals and do much to burden religious freedom. Assuming all of the same precautions are taken, why can someone safely walk down a grocery store aisle but not a pew? And why can someone safely interact with a brave deliverywoman but not with a stoic minister? The Commonwealth has no good answers. While the law may take periodic naps during a pandemic, we will not let it sleep through one.

Nor does it make a difference that faith-based bigotry did not motivate the orders. The constitutional benchmark is “government neutrality,” not “governmental avoidance of bigotry.” A law is not neutral and generally applicable unless there is “neutrality between religion and non-religion.” And a law can reveal a lack of neutrality by protecting secular activities more than comparable religious ones.

All of this requires the orders to satisfy the strictures of strict scrutiny. They cannot. No one contests that the orders burden sincere faith practices. Faith plainly motivates the worship services. And no one disputes the Church’s sincerity. Orders prohibiting religious gatherings, enforced by police officers telling congregants they violated a criminal law and by officers taking down license plate numbers, will chill worship gatherings.

At the same time, no one contests that the Governor has a compelling interest in preventing the spread of a novel, highly contagious, sometimes fatal virus. The Governor has plenty of reasons to try to limit this contagion, and we have no doubt he is trying to do just that.

The question is whether the orders amount to “the least restrictive means” of serving these laudable goals. That’s a difficult hill to climb, and it was never meant to be anything less. There are plenty of less restrictive ways to address these public-health issues. Why not insist that the congregants adhere to social-distancing and other health requirements and leave it at that—just as the Governor has done for comparable secular activities? Or perhaps cap the number of congregants coming together at one time?

If the Commonwealth trusts its people to innovate around a crisis in their professional lives, surely it can trust the same people to do the same things in the exercise of their faith. The orders permit uninterrupted functioning of “typical office environments,” which presumably includes business meetings. How are in-person meetings with social distancing any different from in-person church services with social distancing? Permitting one but not the other hardly counts as no-more-than-necessary lawmaking.

Sure, the Church might use Zoom services or the like, as so many places of worship have decided to do over the last two months. But who is to say that every member of the congregation has access to the necessary technology to make that work? Or to say that every member of the congregation must see it as an adequate substitute for what it means when “two or three gather in my Name,” Matthew 18:20, or what it means when “not forsaking the assembling of ourselves together,” Hebrews 10:25.

As individuals, we have some sympathy for Governor DeWine’s approach—to allow places of worship in Ohio to hold services but then to admonish all of them (we assume) that it’s “not Christian” to hold in-person services during a pandemic. But the Free Exercise Clause does not protect sympathetic religious practices alone. And that’s exactly what the federal courts are not to judge—how individuals comply with their own faith as they see it.

The Governor suggests that the explanation for these groups of people to be in the same area—intentional worship—creates greater risks of contagion than groups of people, say, in an office setting or an airport. But the reason a group of people go to one place has nothing to do with it. Risks of contagion turn on social interaction in close quarters; the virus does not care why they are there.

So long as that is the case, why do the orders permit people who practice social distancing and good hygiene in one place but not another for similar lengths of time? It’s not as if law firm office meetings and gatherings at airport terminals always take less time than worship services. If the problem is numbers, and risks that grow with greater numbers, there is a straightforward remedy: limit the number of people who can attend a service at one time. All in all, the Governor did not customize his orders to the least restrictive way of dealing with the problem at hand….

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