A Group of Prosecutors Want SCOTUS To Save Death Row Inmate James Dailey

James Dailey, a Florida death row inmate, has gained an interesting group of supporters. Eight current and former prosecutors and attorneys general, some of whom have stood behind death sentences, filed a brief asking the U.S. Supreme Court to review Dailey’s death sentence. 

As Reason previously reported, Dailey was sentenced to death over the murder of Shelly Boggio. Boggio’s body was found on May 6, 1985. She was naked and her body had been stabbed multiple times. Dailey’s former roommate, Jack Pearcy, who had actively tried to spend intimate time with the Boggio, admitted to stabbing her at least once and provided details of the crime to investigators. He owned a knife consistent with the stab wounds and was the only person identified by eyewitness the night she was murdered. Now serving a life sentence for murder, he has also confessed that he was solely responsible for the crime at least four times. Twice he’s told other inmates that Dailey was innocent.

Dailey was ultimately convicted based on the testimony of unreliable jailhouse informants like Paul Skalnik.

Skalnik is recognized for being one of the most prolific and egregious jailhouse informants in history. Not only is Skalnik’s truthfulness still being questioned to this day, but it is apparent that his cooperation in convicting Dailey earned him a reward. Though he promised the jury he was receiving nothing for his testimony, he was released from jail just five days after Dailey was sentenced to death. A Florida Parole and Probation Commission memo cited his “cooperation with the State Attorney’s Office in the first-degree murder trial” as the reason for his early release despite his parole officer already labeling him a flight risk and a danger.

This was not the first time Skalnik was rewarded for his cooperation. Prosecutors once dismissed a child-sex charge involving a 12-year-old girl in exchange for his testimony, a fact withheld from the jury in Dailey’s case.

The eight prosecutors and attorney generals who signed the amicus brief in support of reviewing Dailey’s case believe prosecutors took on too much risk by relying on the “inherently unreliable” testimonies of jailhouse informants, especially when no physical evidence tied Dailey to the crime. 

“We know, as former or current prosecutors and attorneys general, the inherent risk that jailhouse informants give false testimony to gain personal benefits,” they wrote. “Because informant testimony is inherently unreliable, prosecutors have an obligation to present an accurate and complete picture of the benefits received so that jurors can consider in context the credibility to which the testimony is entitled.”

The brief cites two sources showing jailhouse testimony to be the leading factor in convictions for death row cases that were eventually exonerated. A Center on Wrongful Convictions study from 2005 found that of the 111 exonerations carried out following the re-establishment of the death penalty in 1973, jailhouse informants had accounted for 45 percent of the wrongful convictions.

“The use of jailhouse informants like [Skalnik] is one of the great abuses in criminal trials across America,” Bennett Gershman tells Reason. Gershman, who was a New York prosecutor for ten years and is now a professor at Pace Law School and a leading voice on prosecutorial misconduct, signed the brief.

Identifying Skalnik as the “worst of the worst” of jailhouse informants, Gershman says his inclusion made a “mockery” of the idea that Dailey received a fair trial. When asked what could be done to avoid similar missteps in the future, Gershman notes that the jury is predisposed to believe the prosecutor’s evidence. Because of this, prosecutors have the responsibility of making sure they are using credible witnesses and presenting reliable evidence. Corroboration of the jailhouse informant’s testimony, he says, would help.

Gershman believes if Florida Gov. Ron DeSantis, a Republican, looks “extra closely” at the facts of the case, he too would conclude that the case against Dailey was a “travesty of justice.” He adds that he’s always believed that the death penalty was “an ineffective punishment.”

“No one should be put to death unless we are absolutely certain that he committed the crime and that he committed it with the intent which is necessary before we find him guilty and sentence him to death,” former Florida prosecutor Bruce Jacob says. He also signed the brief. “In this case, the facts are not clear. It’s even possible that he did not commit the crime.”

Harry Shorstein, another Florida prosecutor who signed the brief, previously wrote in The Miami Herald that Dailey should receive executive clemency before it was too late. He argued that the jury was never given the full picture of Skalnik’s cooperation with prosecutors or even his own criminal past.

Dailey’s supporters also include the Innocence Project of Florida and an interfaith coalition that recently sent another letter to the governor asking for clemency.

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Carrie Lam Caves, Closes All Hong Kong Crossings Into Mainland China

Carrie Lam Caves, Closes All Hong Kong Crossings Into Mainland China

Carrie Lam finally knows what it feels like to be brought to her knees by the people of Hong Kong.

After successfully resisting the pro-democracy movement’s demands (aside from withdrawing the hated extradition bill, a decision that likely had Beijing’s backing) for months and months, Lam lasted all of about two days after thousands of health-care workers decided to go on strike in the face of a worsening epidemic poised to be the worst infectious outbreak in the city since SARS (SARS killed 300 after ripping through the city’s financial district).

On Wednesday, Lam said all travelers from mainland China, including local residents re-entering the country, will be required to be quarantined for 14 days. The new policy takes effect on Saturday, giving travelers 48 hours to figure out where they need to be.

However, Lam didn’t explain how the ‘quarantine’ will be enforced, sowing doubts about the city’s ability to forcibly house that many people, particularly after protesters persuaded the city government not to use a newly built public housing project to isolate infected patients.

Lam also apologized for a controversial comment made on Tuesday when she chided public officials not to wear masks except under dire circumstances to help conserve supplies.

The strikers forced Hong Kong’s hospitals to cut services for a second day as they demanded that Carrie Lam acquiesce and shut the border with the mainland.

HK confirmed its first coronavirus death on Tuesday – the second outside mainland China. That’s another reason why Lam’s government might have caved. On Tuesday and Wednesday, the city confirmed six new cases, increasing the total to 21. The three confirmed cases on Tuesday had no travel history.

“It is worrying…the coming 14 days will be key,” she added.

“The situation has entered another critical stage. After consulting medical experts, I am announcing the further reduction of cross-border traffic.”

The chief executive said the government would also suspend immigration services at Kai Tak Cruise Terminal and Ocean Terminal.

Lam said the city would set up a $1.28 billion (HK10 billion) fund to help combat the outbreak. She also begged citizens to “unite” to fight the outbreak, a reference to lingering protests and resentment between the people and the government (and particularly the police).

“We must unite and set aside our differences, so that we can win this war against the disease,” Lam said.

By folding, Lam is likely infuriating her backers on the mainland, including President Xi, who managed to ‘convince’ the WHO that China isn’t unsafe and that border closures and travel restrictions targeting Chinese citizens aren’t necessary.

Still, the news that China’s special administrative regions are joining the rest of the world in cutting ties to the mainland is hardly reassuring. But markets still look set to notch their first back-to-back gains in a week, even as quarantines are being set up on the Chinese base of iPhone maker Foxconn, at land borders with Hong Kong, on a cruise ship docked in Japan and US military bases.


Tyler Durden

Wed, 02/05/2020 – 12:50

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All Hail Greta, The Great Carbon Hypocrite

All Hail Greta, The Great Carbon Hypocrite

Authored by Michael Shedlock via MishTalk,

Above all else, Greta Thunberg is a world class carbon hypocrite.

Al Hail Greta

Greta Demands Action Now!

Greta gets accolades for demanding the world Immediately and Completely Divest From Fossil Fuels.

We demand at this year’s World Economic Forum, participants from all companies, banks, institutions and governments: immediately and completely divest from fossil fuels,” said Greta.

Even if you are convinced man and not the sun is the overwhelming force in climate change, the idea that we can immediately divest from fossil fuels and have “real zero” emissions is economic nonsense.

Such statements do not merit praise, they merit ridicule. And her parents deserve scorn for putting her on stage to be used in this way.

The media treats Greta like she is some sort of saint. Actually, she is little but a pawn in someone else’s game on a fool’s mission to achieve the impossible.

Success Defined

Ironically, Greta’s message is so absurd that if we did what she asked, there would be panic and a global economic collapse.

Among other things, food production would collapse. Of course, if 90% of the people died from starvation from her idiotic proposal, we would come close to her goal of “success”.

Meanwhile, Greta travels the world to preach her silly message wearing shoes and clothes with a high carbon footprint. Worse yet is the carbon footprint of her travels.

Greta’s Carbon Footprint

Greta sometimes travels by an alleged zero-emission sailboat.

However, please take a look at Greta Thunberg’s Not-So-Little Carbon Footprint.

She most recently traveled to the United States, and is now about to embark on a whirlwind tour as part of her global climate strike, and won’t return to Europe for nine months. She’ll now be heading to Canada, then Mexico, and then in December Greta will head to Chile for the UN climate conference. That’s a lot of traveling.

So how does Greta get around to all her speaking engagements on behalf of the planet?

You might be surprised to learn that Greta didn’t come to the US by air. No, Greta came by boat. And not just any boat—we’re talking about a zero-emissions sailboat called the Malizia II, which took her weeks. Malizia II has solar panels and underwater turbines that generate electricity onboard. Experts say that the Malizia II offers the lowest-carbon way to cross the Atlantic. Fantastic!

That’s the picture that Greta supporters would like you to focus on. But there’s another side to this eco-friendly journey: Two crewmembers had to fly across the Atlantic to New York to bring the boat back, and two of the crewmembers that made the original voyage had to fly across the Atlantic from the US to return homeThat’s four flights to keep Greta from making two.

We won’t even mention the train trip Greta took to get to Plymouth, England, in order to set sail, nor will we mention the numerous freeze-dried meals, which we assume are encased in some single-use plastic product, which by our estimations, the two-man crew, Greta, her father, and some cameraman documenting the experience equated to over 200 meals. We also won’t talk about how Greta will return home, since the boat has since returned to Europe.

In a nutshell, the 5,337-kilometer flight times four people generated 2,134,800 grams of C02 by our calculations, just for the flights alone.

Trump Threatens Retaliation On Proposed Carbon Taxes

The above article is from October 2019, but I just came across it while researching Trump Threatens Retaliation on Proposed EU Carbon Taxes.

Comments From Acting Man on Carbon Taxes

The EU and Germany in particular is committing economic suicide to battle a non-problem. This is too absurd for words; of course, politicians in Europe never let an opportunity to raise taxes pass them by – and they try to make others pay as well now, because they know Europe is losing on every front in terms of tax and regulatory competition. I’m opposed to Trump’s trade war, but in this case his threat of retaliation actually deserves to be supported, if only because it may lead to the EU thinking twice about imposing yet another layer of taxes for absolutely nothing.

In Germany electricity prices have gone through the roof, and for what? We hear that global temperatures continue to rise (based on highly dubious, very likely outright fraudulent data) and CO2 in the atmosphere also continues to rise inexorably year after year. What exactly are Germany’s citizens making this sacrifice for? 100ds of thousands are living in “energy poverty” by now and can no longer afford to heat their homes properly in the winter. Germany used to export electricity to the rest of Europe – today it is now dependent on imports to prevent its grid from collapsing when there is not enough wind or sunlight. And all of this happened under the “conservatives” of Merkel!!

The above accurate comments from Pater Tenebrarum at the Acting Man Blog.

Fashionista Report

Also consider the Fashionista report IS YOUR GRETA THUNBERG T-SHIRT CONTRIBUTING TO CLIMATE CHANGE?

The problem with T-shirts, even those purporting to promote climate action, is they’re especially hard on the environment. Just growing the cotton that goes into one can take 2,700 liters of water — enough for a person to drink for two-and-a-half years — and, if it isn’t farmed organically, a third of a pound of pesticides and other agricultural chemicals. T-shirts, particularly those with “heathered” yarns of mixed colors, may contain polyester and other synthetic fibers, which are derived from crude oil and emit greenhouse-gas emissions from extraction to disposal. They’re also linked to the production of microplastics: minuscule fragments of plastic, tinier than one-fifth of an inch, that slough off during laundering to pollute the oceans, tap water, table salt and the guts of every species of sea turtle.

Greta might not be able to control T-Shirts with her name on them, so cut her some slack for that, but not the fools buying them in her name.

The important point is Greta cruises and jet sets accompanied with a film crew in the name of zero emissions while having a carbon footprint greater than nearly everyone else on the planet.

She demands we do as she says, not what she does, knowing full well if we actually did what she asked, there would be a global economic collapse.

All hail Greta, the great carbon hypocrite.


Tyler Durden

Wed, 02/05/2020 – 12:30

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Get Ready For Impeachment 2.0: House Dems To Subpoena Bolton After Senate’s Refusal

Get Ready For Impeachment 2.0: House Dems To Subpoena Bolton After Senate’s Refusal

Ge ready for ‘impeachment 2.0’.

CNN reports that the Judiciary Committee Chairman Jerry Nadler is planning to subpoena John Bolton to testify in the House, after moderate Senate Republicans refused to join Democrats in demanding that the Senate call Bolton to testify about claims made in an upcoming book. Republicans argued that collecting testimony was the House’s job (even though the leaked Bolton manuscript conveniently surfaced shortly after the trial began). And they eventually won the day.

Now, the Democrats are hoping to take a mulligan – just like Biden and Buttigieg now that Bernie Sanders was robbed in Iowa. And instead of limiting the testimony to Ukraine, they’re jonesing to let Bolton talk about anything and everything that’s weighing on his mind (though he might want to hold off on some spoilers for the sake of book sales).

Impeachment was supposed to be a political shitstorm, a deeply shameful exposition of the president’s many iniquities, and the genesis of dozens of campaign ads. Instead, President Trump’s acquittal on Wednesday is a virtual certainty, and Trump is walking away from the third impeachment trial in the nation’s history more popular than ever. But that’s not all: The whole process was a snoozefest. An almost unbearable procession of ridiculous and hysterical soundbites like when Adam Schiff warned that Trump might trade Alaska to the Russians.

 

Like SNL joked in a surprisingly entertaining sketch, John Bolton is a messy bitch who loves drama, and he and the Dems are not ready to give up on ‘the trial you wish had happened’ just yet…

…but here’s the rub: Like SNL makes clear, it’s an impeachment ‘fantasy’.

Maybe the Dems can spice up the Bolton hearing with a little musical number.


Tyler Durden

Wed, 02/05/2020 – 12:10

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Apparently all white males are just mindless automatons

Recently the prominent investment bank Goldman Sachs announced that they would no longer work with companies whose Boards of Directors consisted exclusively of white males.

Specifically the bank will immediately require prospective clients to have at least one female or one non-white individual, on the Board of Directors. And by 2021, a company would need at least two ‘diverse’ directors, otherwise Goldman Sachs will refuse to underwrite that company’s Initial Public Offering.

(Obviously this doesn’t apply to Chinese or Middle Eastern companies; Goldman Sachs is happy to continue selling its soul to non-diverse companies in those parts of the world.)

But Goldman is just the latest bank to make this announcement.

BlackRock and State Street Global Advisors, two of the largest asset managers in the world, also recently stated that they would vote against directors at the companies in which they are shareholders, unless those Boards have at least one female member.

Everything about this is remarkably stupid.

In the case of BlackRock and State Street, there are literally ZERO companies in the S&P 500 anymore that have all-male boards. None. And a recent Harvard study showed that 80% of large-cap companies have at least two female directors, if not more.

So their supposedly bold proclamation is completely pointless, except to demonstrate their ‘wokeness’ to Millennials.

More importantly, though, it highlights a major revolution in capitalism itself.

Business and capitalism should be the ultimate meritocracy. Talent rises to the top. Mediocrity stagnates. And poor performance washes out.

But talent has no gender. It has no ethnicity. It has no sexual orientation.

Talent is measured by how well you can accomplish the mission and lead an organization to greater achievements.

This is what’s supposed to matter. And the shareholders (i.e. the OWNERS) of a business are supposed to elect their representatives to the Board of Directors based on this critical factor.

It shouldn’t matter if the entire board is white males, trans women of color, benevolent space aliens, or people who identify as seedless watermelons. Those shouldn’t even be factors.

I serve on a number of boards– including large companies that I’ve started, non-profits, and one company that’s traded on a major stock exchange.

Some of the best directors I’ve ever served with are women. And good thing, because I picked them myself.

But I didn’t pick them because they’re women. That would be a horrible insult to them. I picked them because they’re seriously freaking talented… which is the only reason that matters.

The common refrain among social justice warriors is that ‘diverse boards make better decisions because they come from different backgrounds, and the companies are better off for it.’

This is such a dumb thing to say. It presupposes that all white males are robotic automatons who think in exactly the same way. What a bunch of bullshit.

Moreover, Stanford University published an analysis last year of 11 different academic studies concluding that “evidence on board diversity and corporate outcomes is highly mixed.

In other words, there is no conclusive evidence that diverse boards create better companies.

But these social justice warriors, and the companies like Goldman, State Street, and Black Rock that bow to the pressure, are happy to ignore facts and data.

And even if it were true that diversity somehow makes better Boards, why stop at gender and race?

If you believe that it’s better to have people with different perspectives, then why not demand that every board also include someone who is physically disabled? Or someone who served in a combat zone? Or someone of a smaller religion or political affiliation?

I imagine that a blind gay vegan veteran Wiccan probably has a unique perspective. So why not demand one of those on every Board?

Because that would be ridiculous, right? Of course. But that’s what this entire movement is– ridiculous.

Capitalism is responsible for the greatest and widest level of prosperity in the history of the world. Without the free market we would still be Medieval serfs. Capitalism is not perfect, but it works. And it has a hell of a track record.

But these whacktivists are trying to replace the critical fundamentals of capitalism which drive prosperity (like talent) with a ridiculous value system that has no factual basis whatsoever.

And they’re winning.

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In California, Protecting Workers Means Outlawing Their Jobs

“As a freelancer, I have the flexibility to do work while I’m at school, or do work late at night, or, you know, not work that week because I’m busy,” Kassy Dillon, a journalist and graduate student at Pepperdine University, told Reason in late 2019.

On January 1, 2020, earning that extra cash got a lot more difficult. California Assembly Bill 5 was designed to constrain the growth of the so-called gig economy, based on the theory that companies like Uber, Lyft, and Postmates are taking advantage of contract labor.

Dozens of professions, including many jobs in health care, commercial fishing, grant writing, hair styling, and the fine arts, are exempt from the law. Journalists were allotted a partial exemption of 35 submissions per year per client, which was negotiated by the bill’s author, California Assemblywoman Lorena Gonzalez (D–80th District).

“Was it a little arbitrary,” Gonzalez told the The Hollywood Reporter regarding how she came up with that number, “Yeah. Writing bills with numbers like that are a little bit arbitrary.” (Gonzalez declined Reason’s interview request.)

Vox, which had hailed the new law as a “victory for workers everywhere,” announced in December that it will be ending contracts with more than 200 freelancers who lived in or covered California. Those 200 freelance contracts will be replaced with 20 part-time or full-time staff positions.

“This is a really unusual position for people in creative fields like freelance journalism to be in,” says Randy Dotinga, a San Diego-based freelance journalist and the former president of the American Society of Journalists and Authors. “By nature, most of us are liberal, progressive Democrats. We’re also pro-union for the most part. And here we are saying this goes too far.”

Journalists “might write on a blog post in 20 minutes and they might write dozens of blog posts every month or every year,” says Dotinga. “A lot of publications don’t have the resources to put someone like that on staff. So they’re either going to be limited in what they can write or they’re just going to be let go.” The American Society of Journalists and Authors has filed a lawsuit arguing that the bill is unconstitutional.

If regulating freelancers is a good idea, why were there so many vaguely defined exemptions written directly into the text of the law? In the lead-up to its passage, most lip service was paid to the plight of Uber and Lyft drivers.

Veena Dubal, a law professor at the University of California Hastings, thinks that drivers are mis-classified as independent contractors. “If you have such little bargaining power with the folks that you’re consulting with or you’re freelancing for,” says Dubal, “then it’s exploitative.”

Uber and Lyft maintain that drivers have flexible schedules and are therefore correctly classified as independent contractors. And 95 percent of California’s Uber and Lyft drivers say that the job’s flexibility is “extremely” or “very” important to them.

Coral Itzcalli, a spokesperson for Mobile Workers Alliance, which is trying to unionize the industry, says that Uber and Lyft “are paying workers very little wages. You’re looking at workers driving 14, 16 hours a day. There’s no flexibility in that.”

But California Lyft drivers spend an average of 3 hours per week on the app. And according to a 2019 study commissioned by Lyft, the company will likely have to end its arrangements with around 250,000 drivers, and the part-timers, who make up the majority, would be the first to go. 

For us,” says Itzcalli, “this is about focusing on ensuring that jobs are good jobs. If we have one or 100 jobs that are paying less than minimum wage, there is absolutely no benefit. I [would] rather have 50 good jobs than a 100 bad paying jobs.”

But who gets to make that choice? The labor movement or the freelancers taking those jobs?

I hope that there’s some way that the labor movement can look at freelancers of all types, and say this is a valid, honorable profession,” says Randy Dotinga. “We are workers too. And many of us choose this field. We are not exploited. We don’t exploit others. We’re not scabs. We’re small businesses and we deserve to be treated that way.”

Produced by John Osterhoudt. Camera by Osterhoudt, Zach Weissmueller, and James Marsh.

Photo credit: Vito Di Stefano/ZUMA Press/Newscom; Hayne Palmour Iv/ZUMA Press/Newscom; Earnie Grafton/ZUMApress/Newscom; Charlie Neuman/ZUMAPRESS/Newscom; Charlie Neuman/ZUMA Press/Newscom; KM2/Ken McCoy / WENN/Newscom; Andre Jenny Stock Connection Worldwide/Newscom; Chuck Myers/ZUMA Press/Newscom; ID 42987615 © trekandshoot | Dreamstime.com; ID 169721027 © Andrei Gabriel Stanescu | Dreamstime.com

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Bitcoin Price May Hit $27K All-Time High By Summer, Predicts Fundstrat’s Tom Lee

Bitcoin Price May Hit $27K All-Time High By Summer, Predicts Fundstrat’s Tom Lee

Authored by William Suberg via CoinTelegraph.com,

Bitcoin is primed for average gains of almost 200% over the next six months, one of its best-known supporters has told mainstream media. 

image courtesy of CoinTelegraph

Speaking to Yahoo! Finance on Feb. 4, Tom Lee, co-founder at Fundstrat Global Advisors, said one bullish technical factor, in particular, made him “really optimistic” about Bitcoin’s short-term potential.

Lee: 200MA triggers 197% returns

“Notably in January – January is usually a week month, it was a great month for Bitcoin, up 26% – but it also recovered its 200-day moving average,” Lee explained. 

“That’s a big deal as you know, as anyone who’s a trend follower knows — when you’re back above your 200-day, you’re back in a bull market. Whenever Bitcoin breaks back into its 200-day, its average six-month gain is 197%.”

As Cointelegraph reported, the 200-day moving average has traditionally represented a major area of resistance for markets.

Bitcoin price; 200-day moving average.

BTC 2020 growth can beat 2019

Bitcoin, in fact, gained closer to 30% in January before continuing its growth to hit recent highs around $9,450. 

For some analysts, the cryptocurrency’s most successful January since 2013 is a sign that its next long-term bull cycle is already beginning

Lee also considered 2020 to have larger returns in store for BTC investors than last year, despite 2019 delivering gains which at one point crossed 300%.

Like many, he highlighted May’s block reward halving as a “catalyst” for Bitcoin price expansion. Not only will the event reduce the new Bitcoin supply by 50%, it will also take its inflation rate below that of both gold and the 2% inflation target of the United States Federal Reserve. 

A historically accurate price forecasting model, Stock-to-Flow, predicts the halving will trigger a bull run to around $100,000 by the end of 2021. 

Last month, Lee said the halving event was nonetheless not “priced in.” At the time, before the moving average crossover, he said that he envisaged Bitcoin’s 2020 gains topping out at 100%.


Tyler Durden

Wed, 02/05/2020 – 11:55

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Pelosi Shredded After Tearing Up SOTU Speech; Offers Lame Excuse

Pelosi Shredded After Tearing Up SOTU Speech; Offers Lame Excuse

House Speaker Nancy Pelosi (D-CA) was widely rebuked on both sides of the aisle after tearing up her copy of President Trump’s State of the Union Address Tuesday night.

On Wednesday, the White House Twitter account slammed Pelosi for dishonoring distinguished guests, writing “That’s her legacy.”

Meanwhile, Vice President Mike Pence told Fox & FriendsI wasn’t sure if she was ripping up the speech or ripping up the Constitution,” adding “The contrast here was a president who spent an hour-and-a-half making the speech about America and Nancy Pelosi in the final moments tried to make it about her.”

Several C-Span callers who identified as Democrats said that Pelosi’s stunt was beyond the pale.

And conservative attorney and impeachment witness Jonathan Turlley wrote in a Wednesday Op-Ed in The Hill, “the conduct of Speaker Nancy Pelosi at the State of the Union address this week will go down as a day of infamy for the chamber as an institution.”

While it has long been a tradition for House speakers to remain stoic and neutral in listening to the address, Pelosi seemed intent on mocking President Trump from behind his back with sophomoric facial grimaces and head shaking, culminating in her ripping up a copy of his address.

Her drop the mic moment will have a lasting impact on the House. While many will celebrate her trolling of the president, she tore up something far more important than a speech. She shredded decades of tradition, decorum, and civility that we need now more than ever. The House speaker is more than a political partisan, particularly when carrying out functions such as the State of the Union address. A president appears in the House as a guest of both chambers of Congress. The House speaker represents not her party or herself but the entirety of the chamber. At that moment, she transcends her political ambitions and loyalties. –Jonathan Turley via The Hill

Pelosi has responded to critics, telling House Democrats in a closed-door caucus meeting “He shredded the truth, so I shredded his speech,” adding that Trump’s address was “a manifesto of mistruths,” according to The Hill.

“You are supposed to talk about the state of the union,” Pelosi continued. “not the state of your alleged mind.”


Tyler Durden

Wed, 02/05/2020 – 11:33

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In California, Protecting Workers Means Outlawing Their Jobs

“As a freelancer, I have the flexibility to do work while I’m at school, or do work late at night, or, you know, not work that week because I’m busy,” Kassy Dillon, a journalist and graduate student at Pepperdine University, told Reason in late 2019.

On January 1, 2020, earning that extra cash got a lot more difficult. California Assembly Bill 5 was designed to constrain the growth of the so-called gig economy, based on the theory that companies like Uber, Lyft, and Postmates are taking advantage of contract labor.

Dozens of professions, including many jobs in health care, commercial fishing, grant writing, hair styling, and the fine arts, are exempt from the law. Journalists were allotted a partial exemption of 35 submissions per year per client, which was negotiated by the bill’s author, California Assemblywoman Lorena Gonzalez (D–80th District).

“Was it a little arbitrary,” Gonzalez told the The Hollywood Reporter regarding how she came up with that number, “Yeah. Writing bills with numbers like that are a little bit arbitrary.” (Gonzalez declined Reason’s interview request.)

Vox, which had hailed the new law as a “victory for workers everywhere,” announced in December that it will be ending contracts with more than 200 freelancers who lived in or covered California. Those 200 freelance contracts will be replaced with 20 part-time or full-time staff positions.

“This is a really unusual position for people in creative fields like freelance journalism to be in,” says Randy Dotinga, a San Diego-based freelance journalist and the former president of the American Society of Journalists and Authors. “By nature, most of us are liberal, progressive Democrats. We’re also pro-union for the most part. And here we are saying this goes too far.”

Journalists “might write on a blog post in 20 minutes and they might write dozens of blog posts every month or every year,” says Dotinga. “A lot of publications don’t have the resources to put someone like that on staff. So they’re either going to be limited in what they can write or they’re just going to be let go.” The American Society of Journalists and Authors has filed a lawsuit arguing that the bill is unconstitutional.

If regulating freelancers is a good idea, why were there so many vaguely defined exemptions written directly into the text of the law? In the lead-up to its passage, most lip service was paid to the plight of Uber and Lyft drivers.

Veena Dubal, a law professor at the University of California Hastings, thinks that drivers are mis-classified as independent contractors. “If you have such little bargaining power with the folks that you’re consulting with or you’re freelancing for,” says Dubal, “then it’s exploitative.”

Uber and Lyft maintain that drivers have flexible schedules and are therefore correctly classified as independent contractors. And 95 percent of California’s Uber and Lyft drivers say that the job’s flexibility is “extremely” or “very” important to them.

Coral Itzcalli, a spokesperson for Mobile Workers Alliance, which is trying to unionize the industry, says that Uber and Lyft “are paying workers very little wages. You’re looking at workers driving 14, 16 hours a day. There’s no flexibility in that.”

But California Lyft drivers spend an average of 3 hours per week on the app. And according to a 2019 study commissioned by Lyft, the company will likely have to end its arrangements with around 250,000 drivers, and the part-timers, who make up the majority, would be the first to go. 

For us,” says Itzcalli, “this is about focusing on ensuring that jobs are good jobs. If we have one or 100 jobs that are paying less than minimum wage, there is absolutely no benefit. I [would] rather have 50 good jobs than a 100 bad paying jobs.”

But who gets to make that choice? The labor movement or the freelancers taking those jobs?

I hope that there’s some way that the labor movement can look at freelancers of all types, and say this is a valid, honorable profession,” says Randy Dotinga. “We are workers too. And many of us choose this field. We are not exploited. We don’t exploit others. We’re not scabs. We’re small businesses and we deserve to be treated that way.”

Produced by John Osterhoudt. Camera by Osterhoudt, Zach Weissmueller, and James Marsh.

Photo credit: Vito Di Stefano/ZUMA Press/Newscom; Hayne Palmour Iv/ZUMA Press/Newscom; Earnie Grafton/ZUMApress/Newscom; Charlie Neuman/ZUMAPRESS/Newscom; Charlie Neuman/ZUMA Press/Newscom; KM2/Ken McCoy / WENN/Newscom; Andre Jenny Stock Connection Worldwide/Newscom; Chuck Myers/ZUMA Press/Newscom; ID 42987615 © trekandshoot | Dreamstime.com; ID 169721027 © Andrei Gabriel Stanescu | Dreamstime.com

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Rabobank: All Hail “Our Glorious Algos”

Rabobank: All Hail “Our Glorious Algos”

Authored by Michael Every via Rabobank,

“Let her rip!” So said the equity-market bulls yesterday, or rather a combination of the algos that can’t catch coronavirus if they wanted to, and the young traders who have never worked a day in a market in which they haven’t had at least one central bank somewhere promising to push asset prices higher in the name of the good of mankind. And rip she did, with the Nasdaq up 2%, the S&P up 1.5%, and even Asian markets bouncing. Naturally, bonds, like protective face masks, are oh-so last season.

This was despite the fact that: total deaths are now over 490; confirmed cases are over 24,000, with 176 globally, up from single figures a few weeks ago, still rising exponentially and with no direct Wuhan link in many of these new cases, showing localised human-to-human transmission; the UK government has told all British citizens to leave China; there are 10 cases on a giant, quarantined Japanese cruise ship; American and United airlines have just suspended flights to Hong Kong due to “lack of demand”, meaning that even that key Asian financial hub is at risk of de facto quarantine; Europe is considering a US-style flight ban from China; and the epidemiologist who led the fight against SARS has stated even travel bans won’t stop the coronavirus from spreading. What he says is needed are stronger national health-care systems – which the same markets now rallying have cheer-led being gutted for decades. Yes, the WHO says we have a window of opportunity to deal with this virus globally. So do the IMF when talking about global economic imbalances. So do the WEF when talking about inequality. So do the UN when talking about climate change. How are we doing so far?

We also have the US proceeding with new tariff measures against anyone engaging in currency manipulation, which deserves more space than I can spare here, but basically means a secular trend of a stronger USD, then higher tariffs, and then a yet stronger USD until something breaks; and we have Larry Kudlow saying coronavirus means China likely won’t be rushing to buy US agri goods (colour us unsurprised there); and we have Bloomberg reporting that there are still discussions taking place in the White House about limiting US portfolio inflows into Chinese capital markets on top of the current physical restrictions on access to China. Perhaps that has something to do with the 8% drop in Chinese stocks on Monday(?), but it certainly underlines the threat that a Chinese economy being hit hard by this virus–for example, the massive April Canton fair just got cancelled–might not see the USD inflows it will need to provide a counterweight to the flood of new CNY liquidity it will have to produce at home to try to re-float its economy. Consider that as you consider where USD/CNY might be heading, taking other crosses with it.

Regardless, it seems our glorious algos would be buying diamonds all day long as they trudged through a baking-hot desert – especially with central banks crying “free liquidity!” without the actual ability to make it rain.

Also being ripped up is political convention. In this case, hopes for an orderly US Democratic Party convention. The results of the Iowa caucus are finally dribbling in a day late, and with 71% of the total released, Mayor Pete Buttigieg seems to be ahead. That’s the same Mayor Pete whose campaign backers produced the voting app that has both singularly failed to work in Iowa, and which has put the relative unknown at the top of the caucus pack ahead of better-known politicians drawing far larger crowds. All very new normal. The populist outsider Bernie Sanders may still pip him to the post, however; and very much worth noting is that Democrat establishment’s (grand)father figure of Joe Biden has come out very poorly from Iowa.

Meanwhile, US President Trump gave a State of the Union address that was part campaign rally and part reality TV show. This is an election year, after all I suppose. The Democrat’s Speaker Nancy Pelosi then responded to this political theatre with the statesmanlike action of physically ripping up the speech on the podium. At least nobody burned down the Reichstag – yet. However, one has to say that the 2020 electoral season is not doing anything to relieve fears that populism is here to stay and getting worse, in the US of A.

Data-wise, today already saw Japan’s services PMI dip to 51.0 and China’s Caixin to 51.8, and we heard RBA Governor Lowe make the case for a policy rethink in terms of the embrace of monetary-fiscal policy coordination as an economic stabilizer (meaning permanent tool), suggesting that the runway is indeed being foamed for AUS-QE ahead. Just two rate cuts to go, and then it’s fiscal spending and the RBA bond-buying as far as the eye can see. And, as we see elsewhere, with no way back home afterwards. Can the AUD really hold up in the face of that kind of radical policy? Is it a USD in disguise? We shall soon find out. But with AUD at 0.6736 again today, the market is simply shrugging it all off. For a change. Free-money, money-on-trees, total-upending-of-how-everything-we-used-to-think-works-really-works. *Yawn* Buy stocks. *Yawn*

Indeed, not to worry – ever: as our Rates Strategy team put it so well yesterday, we live in a post-Minsky world. There are no consequences to our precarious debt levels; there are no consequences to our investment actions; and, for politicians, for most of their actions full-stop. Ask the Soviets how that worked out for them. Or just let nature continue to explain how things actually work.

*  * *

Nothing actually matters to markets anymore, so I am not sure why I am bothering to list what to look ahead to this week, but I guess I am my own auto-algo in that regard.


Tyler Durden

Wed, 02/05/2020 – 11:20

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