“Internet Platforms Aren’t Arbiters Of Truth” – Zuckerberg Blasts Twitter For Tagging Trump Tweets As “Misinformation”

“Internet Platforms Aren’t Arbiters Of Truth” – Zuckerberg Blasts Twitter For Tagging Trump Tweets As “Misinformation”

Tyler Durden

Thu, 05/28/2020 – 07:52

As President Trump prepares to sign an executive order targeting “left-leaning bias” on American social media platforms, Facebook CEO Mark Zuckerberg has embarked on a round of interviews with cable news – ostensibly to discuss Facebook’s new Work From Home policy – where he castigated Twitter CEO Jack Dorsey for voluntarily transforming Twitter into an “arbiter of truth”.

Asked to comment in Twitter’s decision to tag two Trump tweets as “misinformation” by CNBC’s Andrew Ross Sorkin, Zuckerberg replied that “I don’t think that Facebook or internet platforms in general should be arbiters of truth…Political speech is one of the most sensitive parts in a democracy, and people should be able to see what politicians say.”

Although Facebook does use independent fact-checkers to screen content, they’re really only there to “catch the worst of the worst stuff.”

“The point of that program isn’t to try to parse words on is something slightly true or false…in terms of political speech, again, I think you want to give broad deference to the political process and political speech,” Zuck said.

This isn’t exactly a surprise: Facebook said back in October that it would allow political ads on its platform, even if they contained “misinformation”. The left threw a screaming tantrum over this decision, while conservatives applauded the Facebook CEO for standing up to the left’s rage politics.

Still, Facebook has lines that nobody – including politicians – are allowed to cross. Zuck cited a recent incident where Facebook removed a post by Brazilian President Jair Bolsonaro touting hydroxychloroquine and chloroquine as ‘miracle cures’ for the coronavirus, despite research showing the medications might be harmful to patients suffering from severe COVID-19 symptoms.

“There are clear lines that map to specific harms and damage that can be done where we take down the content,” he said. “But overall, including compared to some of the other companies, we try to be more on the side of giving people a voice and free expression.”

Zuckerberg made similar comments during a recent appearance on Fox News.

Asked about Trump’s threat to crack down on social media companies for discriminating against conservatives, the CEO said that fighting censorship with censorship didn’t strike him as the correct response.

“I have to understand what they actually would intend to do,” Zuckerberg said in response to the president’s warning. “But in general, I think a government choosing to to censor a platform because they’re worried about censorship doesn’t exactly strike me as the the right reflex there.”

In a series of tweets, Twitter CEO Jack Dorsey doubled-down on his decision, and insisted that Twitter wasn’t positioning itself as an “arbiter of truth”.

But as Zuckerberg pointed out during his conversation on CNBC, there’s already been a flood of media coverage of Trump’s tweets, plus thousands of angry replies calling Trump a racist and a liar.

If Twitter users can’t “connect the dots” on their own, is it really Twitter’s responsibility to do readers’ critical thinking for them?

Watch CNBC’s full Mark Zuckerberg interview below:

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Senator Says China Tariffs Will Now Apply To Hong Kong As Beijing Approves “National Security” Law

Senator Says China Tariffs Will Now Apply To Hong Kong As Beijing Approves “National Security” Law

Tyler Durden

Thu, 05/28/2020 – 07:06

Update (0800ET): During an interview on CNBC Thursday morning, GOP Sen. Pat Toomey said he expects China tariffs will be expanded to also apply to Hong Kong as the US prepares to strip the ‘special administrative region’ of China of its preferred trade status. Wall Street analysts pointed out on Wednesday that the move could disrupt some $38 billion in bilateral trade between the US and HK.

* * *

One day after the US declared that Hong Kong is no longer “autonomous” from Beijing, China’s Politburo Standing Committee on Thursday officially wove a controversial new “National Security” resolution that was approved during last week’s National Party Congress into Hong Kong’s ‘Basic Law’ – the de facto constitution left by the British – in defiance of President Trump, and a broader backlash across the West, which has repeatedly stood up to defend Hong Kong’s freedoms.

According to the NYT, Beijing will probably initiate a far-reaching ‘crackdown’ to impose the new law on Hong Kong once it takes effect in September.

Activist groups could be banned. Courts could impose long jail sentences for national security violations. China’s feared security agencies could operate openly in the city.

As we reported last night, losing its ‘special status’ conferred by the US could strip Hong Kong of its ‘international city’ designation. As one expert said, Beijing no longer cares about “killing the golden goose” – that is, closing what has been for decades a critical portal to the West and the global financial system.

It’s still unclear how many of Hong Kong’s freedoms Beijing intends to strip away: this won’t become clear until later in the year.

Per the NYT, Hong Kong’s Chief Executive Carrie Lam appeared to hint that certain civil liberties might not be an enduring feature of Hong Kong life. “We are a very free society, so for the time being, people have the freedom to say whatever they want to say,” said the chief executive, Carrie Lam, noting, “Rights and freedoms are not absolute.”

Though US equity futures pointed to a higher open again on Thursday, analysts cautioned that the growing tensions could trigger a massive “risk off” move in markets in the situation escalates. Pictet’s Luca Paolini said on Bloomberg Television that markets seem to be ignoring this because they’re assuming it’s just rhetoric.

“For now it’s just words, but if the escalation takes place it’s the worst possible time to have this kind of escalation considering the global economy continues to be incredibly weak,” Paolini said.

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Houston Federalist Society Dialogue on the Future of Originalism

Earlier this month, I blogged about a brewing debate in Federalist Society circles about originalism, common-good originalism, and common-good constitutionalism. Our Federalist Society chapter in Houston organized a dialogue to discuss this fascinating topic. We invited Josh Hammer, Ilan Wurman, and F.H. Buckley to present their competing views on this topic. I encourage everyone interested in the future of originalism to watch this debate.

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Houston Federalist Society Dialogue on the Future of Originalism

Earlier this month, I blogged about a brewing debate in Federalist Society circles about originalism, common-good originalism, and common-good constitutionalism. Our Federalist Society chapter in Houston organized a dialogue to discuss this fascinating topic. We invited Josh Hammer, Ilan Wurman, and F.H. Buckley to present their competing views on this topic. I encourage everyone interested in the future of originalism to watch this debate.

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White House Expels Chinese Grad Students With Ties To People’s Liberation Army

White House Expels Chinese Grad Students With Ties To People’s Liberation Army

Tyler Durden

Thu, 05/28/2020 – 06:33

As President Trump prepares to sign a bill imposing new sanctions on Chinese officials involved with the country’s sprawling security state, the White House has just unveiled its latest measure to turn up the pressure on Beijing: Chinese grad students with ties to the PLA will be barred from returning.

The news comes as China’s Politburo Standing Committee officially weaves a new “National Security” law effectively barring political dissent into HK’s Basic Law, according to the NYT.

Per the NYT, the Trump administration plans to cancel the visas of thousands of Chinese graduate students and researchers studying at US Universities who have ties to the People’s Liberation Army, according to anonymous administration officials.

This isn’t the first time the White House has considered barring some or all Chinese students in the US. Back in 2018, the FT reported that  the Trump administration had considered banning all Chinese students from the United States – an idea that was attributed to Trump advisor Stephen Miller.

And according to the NYT, this measure has been in the works for some time, and was being considered before China moved to crack down on Hong Kong’s autonomy.

Moreover, this might not be the end of Trump’s retaliation: The president has a long list of possible responses to China’s plans to impose a national security law on Hong Kong, according to Assistant Secretary of State for East Asian and Pacific Affairs David Stilwell, who spoke to reporters last night.

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Woodrow Wilson’s Libertarian Lackeys

“I took this position because I believed in the freedom of the press,” said the nation’s chief censor. That way, he explained, he could “be in a position where I could help to guard it.”

It was 1917, and the assembled members of the media were listening to George Creel, the head of Washington’s wartime propaganda and censorship agency. The federal government had taken an authoritarian turn during World War I, and Creel was in the thick of it. In addition to assisting in the suppression of supposedly seditious material, Creel’s Committee on Public Information (CPI) published agitprop encouraging a Stasi-like state of vigilance. One ad circulated by the committee urged Americans to report anyone who “cries for peace, or belittles our efforts to win the war.”

But Creel kept repeating versions of that guarding-our-freedoms line. At a speech in Indianapolis, he declared that he had “never considered himself a censor”—after all, “censorship plays but a small part in the work of the committee.”

It sounds like a perverse joke. But the really perverse joke is that he meant it.

Woodrow Wilson was, famously, one of the least libertarian presidents in U.S. history. Less famously, he hired several figures with quasi-libertarian pedigrees. From Creel, the censor against censorship, to Newton Baker, the borderline pacifist who became secretary of war, the Wilson years offer a cautionary tale about people’s ability to fool themselves into collaborating with the evils they claim to oppose.

The story begins with Henry George, a 19th century reformer best known for his Single Tax plan: George wanted every tax—especially the tariff, which he particularly loathed—to be replaced with a levy on the unimproved value of land.

Historians sometimes have trouble comprehending George’s place in the political landscape. He is often lumped in carelessly with the critics of laissez faire, though his own views tended toward laissez faire when the subject was not land. And the sheer breadth of his influence is easy to miss, since it cuts across conventional political boundaries. At one end of the Georgist spectrum was the public intellectual John Dewey, whose Single Tax roots did not keep him from endorsing a highly interventionist government. At the other end was Spencer Heath, an engineer and longtime Georgist who came to espouse a sort of landlord-based anarcho-capitalism: Instead of a government taxing land values and using the proceeds to provide services, private “proprietary communities” would charge rent and use the proceeds to provide services.

A surprisingly large number of Georgists entered politics during the Progressive Era. The Progressives of the day are often sorted into two broad categories. One group favored “scientific” management of the economy, coercive moral reform, and a partnership between consolidated industry and the state. The other was skeptical of both big government and big business, favoring reforms that, as the historian Otis Graham put it, largely “stopped short at, and were designed to prevent, the growth of government.”

The Progressive Georgists usually fell into the second group. They were happy to, say, replace a government-enforced franchise monopoly with direct municipal ownership, but they were less enthusiastic about changes that smacked of regulation and regimentation.

That latter tendency was strong in Ohio, where several Georgists became mayors: Tom Johnson and then Newton Baker in Cleveland, Samuel Jones and then Brand Whitlock in Toledo. Many Progressives favored the strict regulation of personal habits, but these mayors (with the partial exception of Baker) were inclined to cut back on policing and to oppose laws that restricted drinking, gambling, or the sex trade. “These libertarian undertones to Georgism gave Ohio progressivism a substantively different tenor than the rest of the country, where it often went hand-in-hand with Christian moralism,” the historian Christopher England wrote in his 2015 doctoral thesis on George’s influence.

This reached its zenith under Jones, who was influenced not just by George but by the pacifist anarchism of Leo Tolstoy. Jones was basically a prison abolitionist: “If I could,” he said, “I would open the penitentiaries.” When the magistrate of Toledo’s police court was absent, Jones would appoint either himself or his assistant—future mayor Whitlock—as acting judge, then dismiss every case.

Jones was long dead by the time Wilson became president in 1913. But Whitlock was eventually made Wilson’s ambassador to Belgium, and several other Georgists took posts in the administration, including Creel at CPI, Baker at the Department of War, and Louis Post as assistant secretary of labor. Albert Jay Nock, a protégé of Whitlock’s who later became a founding father of the modern libertarian movement, did some work for the Department of State. Outside the government, many Georgists had high hopes for the president. Even Spencer Heath was initially enthusiastic.

When the U.S. entered World War I, Nock had already—in the words of the historian Kenneth Gregg—”left in horror over the directions that [Wilson’s] administration was going, never to return to politics again.” But he stayed in touch with his old comrades. “I think you have about the most detestable job in the world,” he wrote to Creel. But, he added kindly, “you are sincere and loyal to the core, and honestly and with splendid industry and diligence trying to make something out of your job that will reflect sincerity and loyalty….If you do not succeed—and you won’t—it is because it isn’t in the job.”

Post could credibly claim to have undermined the administration’s authoritarian policies, having used his position to block thousands of unjust deportations during the postwar Red Scare. It’s much harder to say anything like that about Creel, but he really does seem to have believed that he held back the illiberal tide. Years later, he recalled reading after the U.S. declared war “that some rigid form of censorship would be adopted.” Concerned, Creel “wrote a letter of protest to the President in which I explained to him that the need was for expression not repression.” Wilson hired him, and then…

Well, then the repression began. Creel occasionally interceded to vouch for the loyalty of a group under suspicion, but he spent much more time fomenting paranoia. In a moment that anticipated those Birchite conspiracy theories in which Moscow was manipulating both the civil rights movement and racist vigilante groups, he wrote an article accusing German agents of both inciting whites to lynch blacks and planting “thousands of propagandists among the negroes.” And while Creel disliked the mobs that attacked German Americans and suspected pacifists, he didn’t take responsibility for producing propaganda that might have helped inspire such assaults. Those attacks, he claimed, were themselves incited by the wily Hun.

Creel became convinced that the war itself could be bent to reformist ends, if only the president would make it an anti-imperial struggle. “Before we got into it,” he wrote to Wilson, “our entrance had its chief impulsion from our most reactionary and least democratic elements.” But the president had transformed it from “a reactionary trade-imperialistic war” to “a war for democracy”—for the moment. If Wilson didn’t stand up for the war’s progressive principles, Creel warned, “the reactionary patrioteers will defeat the whole immediate future of reform.”

Baker took a similar view. His appointment as secretary of war turned heads because of his pacifist reputation. But his anti-imperial and anti-aristocratic impulses led him to see the Great War as a chance to overthrow the Old World’s hierarchies. Baker argued before the Cabinet for entering the conflict; England quotes him commenting the next day that “this king business is pretty near over.” Soon he was enforcing conscription and commandeering large swaths of the economy. Never as socially tolerant as Ohio’s other Georgist mayors—he had shut down Cleveland’s vice district in 1914—Baker now launched a crackdown on prostitution near Army and Navy camps, eliminating more than 100 red light districts.

When Nock asked Baker if he could do something to stop the federal assault on the socialist magazine The Masses—”it seems a wretched contemptible business, even for a government,” Nock wrote—Baker agreed to help. But nothing came of it. Instead, Nock himself fell prey to the censors: In 1918, the feds temporarily banned The Nation from transit through the mail because of an anti-war article he had written. Thank goodness his friend Creel was guarding the freedom of the press.

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Woodrow Wilson’s Libertarian Lackeys

“I took this position because I believed in the freedom of the press,” said the nation’s chief censor. That way, he explained, he could “be in a position where I could help to guard it.”

It was 1917, and the assembled members of the media were listening to George Creel, the head of Washington’s wartime propaganda and censorship agency. The federal government had taken an authoritarian turn during World War I, and Creel was in the thick of it. In addition to assisting in the suppression of supposedly seditious material, Creel’s Committee on Public Information (CPI) published agitprop encouraging a Stasi-like state of vigilance. One ad circulated by the committee urged Americans to report anyone who “cries for peace, or belittles our efforts to win the war.”

But Creel kept repeating versions of that guarding-our-freedoms line. At a speech in Indianapolis, he declared that he had “never considered himself a censor”—after all, “censorship plays but a small part in the work of the committee.”

It sounds like a perverse joke. But the really perverse joke is that he meant it.

Woodrow Wilson was, famously, one of the least libertarian presidents in U.S. history. Less famously, he hired several figures with quasi-libertarian pedigrees. From Creel, the censor against censorship, to Newton Baker, the borderline pacifist who became secretary of war, the Wilson years offer a cautionary tale about people’s ability to fool themselves into collaborating with the evils they claim to oppose.

The story begins with Henry George, a 19th century reformer best known for his Single Tax plan: George wanted every tax—especially the tariff, which he particularly loathed—to be replaced with a levy on the unimproved value of land.

Historians sometimes have trouble comprehending George’s place in the political landscape. He is often lumped in carelessly with the critics of laissez faire, though his own views tended toward laissez faire when the subject was not land. And the sheer breadth of his influence is easy to miss, since it cuts across conventional political boundaries. At one end of the Georgist spectrum was the public intellectual John Dewey, whose Single Tax roots did not keep him from endorsing a highly interventionist government. At the other end was Spencer Heath, an engineer and longtime Georgist who came to espouse a sort of landlord-based anarcho-capitalism: Instead of a government taxing land values and using the proceeds to provide services, private “proprietary communities” would charge rent and use the proceeds to provide services.

A surprisingly large number of Georgists entered politics during the Progressive Era. The Progressives of the day are often sorted into two broad categories. One group favored “scientific” management of the economy, coercive moral reform, and a partnership between consolidated industry and the state. The other was skeptical of both big government and big business, favoring reforms that, as the historian Otis Graham put it, largely “stopped short at, and were designed to prevent, the growth of government.”

The Progressive Georgists usually fell into the second group. They were happy to, say, replace a government-enforced franchise monopoly with direct municipal ownership, but they were less enthusiastic about changes that smacked of regulation and regimentation.

That latter tendency was strong in Ohio, where several Georgists became mayors: Tom Johnson and then Newton Baker in Cleveland, Samuel Jones and then Brand Whitlock in Toledo. Many Progressives favored the strict regulation of personal habits, but these mayors (with the partial exception of Baker) were inclined to cut back on policing and to oppose laws that restricted drinking, gambling, or the sex trade. “These libertarian undertones to Georgism gave Ohio progressivism a substantively different tenor than the rest of the country, where it often went hand-in-hand with Christian moralism,” the historian Christopher England wrote in his 2015 doctoral thesis on George’s influence.

This reached its zenith under Jones, who was influenced not just by George but by the pacifist anarchism of Leo Tolstoy. Jones was basically a prison abolitionist: “If I could,” he said, “I would open the penitentiaries.” When the magistrate of Toledo’s police court was absent, Jones would appoint either himself or his assistant—future mayor Whitlock—as acting judge, then dismiss every case.

Jones was long dead by the time Wilson became president in 1913. But Whitlock was eventually made Wilson’s ambassador to Belgium, and several other Georgists took posts in the administration, including Creel at CPI, Baker at the Department of War, and Louis Post as assistant secretary of labor. Albert Jay Nock, a protégé of Whitlock’s who later became a founding father of the modern libertarian movement, did some work for the Department of State. Outside the government, many Georgists had high hopes for the president. Even Spencer Heath was initially enthusiastic.

When the U.S. entered World War I, Nock had already—in the words of the historian Kenneth Gregg—”left in horror over the directions that [Wilson’s] administration was going, never to return to politics again.” But he stayed in touch with his old comrades. “I think you have about the most detestable job in the world,” he wrote to Creel. But, he added kindly, “you are sincere and loyal to the core, and honestly and with splendid industry and diligence trying to make something out of your job that will reflect sincerity and loyalty….If you do not succeed—and you won’t—it is because it isn’t in the job.”

Post could credibly claim to have undermined the administration’s authoritarian policies, having used his position to block thousands of unjust deportations during the postwar Red Scare. It’s much harder to say anything like that about Creel, but he really does seem to have believed that he held back the illiberal tide. Years later, he recalled reading after the U.S. declared war “that some rigid form of censorship would be adopted.” Concerned, Creel “wrote a letter of protest to the President in which I explained to him that the need was for expression not repression.” Wilson hired him, and then…

Well, then the repression began. Creel occasionally interceded to vouch for the loyalty of a group under suspicion, but he spent much more time fomenting paranoia. In a moment that anticipated those Birchite conspiracy theories in which Moscow was manipulating both the civil rights movement and racist vigilante groups, he wrote an article accusing German agents of both inciting whites to lynch blacks and planting “thousands of propagandists among the negroes.” And while Creel disliked the mobs that attacked German Americans and suspected pacifists, he didn’t take responsibility for producing propaganda that might have helped inspire such assaults. Those attacks, he claimed, were themselves incited by the wily Hun.

Creel became convinced that the war itself could be bent to reformist ends, if only the president would make it an anti-imperial struggle. “Before we got into it,” he wrote to Wilson, “our entrance had its chief impulsion from our most reactionary and least democratic elements.” But the president had transformed it from “a reactionary trade-imperialistic war” to “a war for democracy”—for the moment. If Wilson didn’t stand up for the war’s progressive principles, Creel warned, “the reactionary patrioteers will defeat the whole immediate future of reform.”

Baker took a similar view. His appointment as secretary of war turned heads because of his pacifist reputation. But his anti-imperial and anti-aristocratic impulses led him to see the Great War as a chance to overthrow the Old World’s hierarchies. Baker argued before the Cabinet for entering the conflict; England quotes him commenting the next day that “this king business is pretty near over.” Soon he was enforcing conscription and commandeering large swaths of the economy. Never as socially tolerant as Ohio’s other Georgist mayors—he had shut down Cleveland’s vice district in 1914—Baker now launched a crackdown on prostitution near Army and Navy camps, eliminating more than 100 red light districts.

When Nock asked Baker if he could do something to stop the federal assault on the socialist magazine The Masses—”it seems a wretched contemptible business, even for a government,” Nock wrote—Baker agreed to help. But nothing came of it. Instead, Nock himself fell prey to the censors: In 1918, the feds temporarily banned The Nation from transit through the mail because of an anti-war article he had written. Thank goodness his friend Creel was guarding the freedom of the press.

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Swiss National Bank Ready To Buy Much More Tech Stocks To Weaken The Franc

Swiss National Bank Ready To Buy Much More Tech Stocks To Weaken The Franc

Tyler Durden

Thu, 05/28/2020 – 06:30

Two weeks ago, with traders and analysts wondering who has been aggressively buying stocks in the past 2 months as markets tumbled – besides retail investors of course – we gave the answer: the money-printing (literally) hedge fund known as the Swiss National Bank.

As we explained then, we showed that as the value of the SNB’s US equity holdings increased more than threefold, from $26.7 billion in Dec 2014 to $97.5 billion in Dec 2019….

… the SNB had kept its total holdings relatively flat for the past year, conserving its dry powder for just the right occasion, an occasion which materialized in March, and the Swiss National Bank went on a buying spree as markets crashed, adding roughly 22% (on average) to its top positions.

Also according to the SNB’s latest 13F, as of March 31, the central bank owned $4.5 billion in Microsoft shares, $4.4 billion in Apple, $3.2 billion in Amazon, $2.7 billion in Google and $1.6 billion in Facebook, also known as the FAAMG stocks which as everyone knows by now, have become the market leaders, accounting for over 20% of the S&P’s market cap.

And the punchline: the SNB added approximately 22% to its holdings of each of the FAAMGs in Q1 as follows:

  • MSFT: +23%
  • AAPL: +21%
  • AMZN: +23%
  • GOOGL: +22%
  • FB: +23%

In short, to keep the value of its portfolio of US stocks relatively flat at $100BN, the SNB unleashed a massive buying spree that boosted its FAAMG holdings by over 20%, which in turn sent the bank’s foreign currency reserves – roughly $100BN of which are parked in the US stock market – to an all time high.

As a reminder, the SNB is one of the few central banks – the BOJ being the other – which openly buys equities in order to keep the value of the Swiss franc from rising too rapidly. The fund flow is simple: the SNB prints CHFs, which it then sells for USDollars – in the process depressing the value of one of the world’s most sought after safe haven currencies – and uses the proceeds to buy US stocks of which it owns about $100 billion. In many ways, this is similar to what the Fed does, only instead of buying Tsys, MBS, and now corporate bonds, the SNB is buying equities.

Simple enough.

And now, in order to convinced currency speculators to stay away from the Swiss Franc which, similar to the dollar, has seen an impressive surge in recent months, the Swiss National Bank announced on Wednesday that is intervening more heavily in the foreign exchange market to weaken the franc and can further cut interest rates, if a cost-benefit analysis warrants such a step, SNB President Thomas Jordan said.

“We have room to maneuver for both instruments,” Jordan said at a panel discussion hosted by UBS Group AG. “It’s clear that we have the possibility to cut rates if necessary.”

He may be telling the truth, although some wonder: with the SNB having cut the Swiss deposit rate to a record low -0.75% plus a pledge to wage foreign exchange market interventions to keep the franc in check, some have suggested that it is approaching the reversal rate beyond which any further cuts hurt not help the economy. Yet with pressure on the haven currency rising as a result of the coronavirus pandemic, Bloomberg notes that Swiss central bank officials said they’d picked up the pace of activity, something we already discussed when we noted that in Q1 the SNB unleashed a massive buying spree of US stocks.

Addressing the SNB’s policy dilemma, whereby further rate cuts may now be self-defeating, Jordan said any policy step required a cost-benefit assessment and that the SNB would enlarge its balance sheet via interventions if the pros outweighed the cons. And due to the unique nature of the SNB, what Jordan really meant, is that he is willing to buy even more tech stocks should the franc continue to rise.

We bring this up just in case there is still confusion just who was buying FAAMGs and tech names as everything else crashed.

We also bring it up to bring some clarity to a truly bizarro world: one where, the worse the global economy gets, the more aggressively at least one central bank to buying US tech stocks.

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