Biden’s Natsec Team Is Conventional in Style—and, Unfortunately, Policy

Joe Biden, Antony Blinken

President-elect Joe Biden’s selection for secretary of defense is rumored but, as of this writing, yet undetermined. The rest of his national security team, however, has been announced ahead of every other slate of cabinet-level nods. For secretary of state, Antony Blinken; for United Nations ambassador, Linda Thomas-Greenfield; for national security adviser, Jake Sullivan; for director of national intelligence, Avril Haines; and for director of homeland security, Alejandro Mayorkas.

It is a list which delivers on Biden’s core campaign promise of a return to normalcy and conventional Washington.

The trouble is that this conventionality isn’t only a matter of style, which in isolation is plenty welcome. The Biden national security team is shaping up for a thoroughgoing conventionality on policy, too, which means maintaining the failed status quo of the post-9/11 era.

Take Blinken, an old school upper crust diplomat who will undoubtedly be far more interested in actual diplomacy than sitting Secretary of State Mike Pompeo has ever been. Blinken supported the development of the Iran nuclear deal and will likely spearhead the Biden administration’s move to jettison the Trump team’s disastrous “maximum pressure” approach to U.S.-Iran relations and rejoin the Joint Comprehensive Plan of Action. So far, so good.

But Blinken is also fundamentally an interventionist who has yet to learn that the U.S. cannot manage the planet. In his remarks accepting Biden’s nomination, he rightly noted Washington “can’t solve all the world’s problems alone”—but then, he went on to suggest our government can solve all the world’s problems if only it partners with other governments.

Thus did Blinken support U.S. military action in LibyaYemen, and Syria. And though he has since regretted the Yemen call, he believes the mistake in Syria was a failure to escalate. He has even attempted to rebrand Biden’s 2002 vote to invade Iraq as a “vote for tough diplomacy.” It was a vote for war—and after nearly two decades, tens of thousands of casualties, and trillions of dollars, we might at least be spared drivel about how endorsing a war is somehow a move for diplomacy.

Thomas-Greenfield may provide some counterbalance to that oddly military-focused mindset in a top diplomat. After 9/11, she recently wrote in a coauthored article at Foreign Affairs, the State Department became “too narrowly focused on terrorism and too wrapped up in magical thinking about the United States’ supposed power to transform regions and societies.” Thomas-Greenfield’s call there for “greater restraint and discipline” in U.S. foreign policy should be heeded, but whether the U.N. ambassador is able to influence policy (vs. simply communicating it) has varied widely in administrations past.

Next is Sullivan, who also worked on the Iran deal. He was an architect of the Libya debacle when he served under then-Secretary of State Hillary Clinton, a role in which he developed a reputation as a diligent, effective, and pleasant hawk. “On the spectrum of people in our administration, he tended to favor more assertive U.S. engagement” and “responses that would incorporate some military element,” Obama adviser Ben Rhodes told Vox of Sullivan in 2015.

Haines for director of national intelligence is a thoroughly establishment choice. She helped build the Obama administration’s drone warfare program—”Haines was sometimes summoned in the middle of the night to weigh in on whether a suspected terrorist could be lawfully incinerated by a drone strike,” Newsweek reported in 2013. (In 2012, a New York Times exposé revealed the Obama team maintained a secret drone “kill list” and counted “all military-age males in a strike zone as combatants,” allowing deceptively low civilian casualty counts.) Haines also supported the Trump administration choice for CIA director of Gina Haspel, who helped lead the CIA unit involved in Bush-era torture.

The final name on the list is Mayorkas at the Department of Homeland Security (DHS). His work to normalize U.S.-Cuba relations during the Obama years is an interesting history and could portend diplomatic progress to come in other antagonistic relationships, like U.S.-Iran or U.S.-North Korea engagement, insofar as DHS is involved. Mayorkas is expected to revive the DHS focus on counter-terror work (which faded into the background of the Trump administration’s attention to immigration), but his record is in prosecution and immigration, so it’s not yet clear what that will mean for policy.

Beyond normalcy, Biden has campaigned on most (though not all) foreign policy issues as a relative moderate, a liberal internationalist who has learned from the mistakes of the last 20 years. He’s said he’ll “end the forever wars,” and govern from the conviction that “use of force should be our last resort, not our first—used only to defend our vital interests, when the objective is clear and achievable, and with the informed consent of the American people.”

Unfortunately, on balance, these appointments will make it difficult for Biden to keep that promise.

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Attorney General Barr Says There Is No Evidence of Election Fraud that Would Have Changed Election Outcome

Michael Balsamo of the Associated Press reports:

In an interview with The Associated Press, Barr said U.S. attorneys and FBI agents have been working to follow up specific complaints and information they’ve received, but they’ve uncovered no evidence that would change the outcome of the election.

“To date, we have not seen fraud on a scale that could have affected a different outcome in the election,” Barr told the AP. . . .

“There’s been one assertion that would be systemic fraud and that would be the claim that machines were programmed essentially to skew the election results. And the DHS and DOJ have looked into that, and so far, we haven’t seen anything to substantiate that,” Barr said. . . .

“Most claims of fraud are very particularized to a particular set of circumstances or actors or conduct. They are not systemic allegations and. And those have been run down; they are being run down,” Barr said. “Some have been broad and potentially cover a few thousand votes. They have been followed up on.”

These comments reflect what careful observers of the 2020 election have already concluded. The various viral claims of widespread voter fraud are bunk. The only think surprising about AG Barr’s comments is that he is willing to contradict so directly the wild election frauds claim made by President Trump. While AG Barr may be willing to take the President’s direction about what matters and which people to investigate, he is not wiling to make up facts or discredit the electoral process.

 

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Another problem with self-pardons

Jonathan Adler’s post sets out some of the legal problems with a purported self-pardon by the President. (For more, see the arguments that Andrew Hyman laid out here.)

Those arguments make sense to me, but there’s also a practical problem involved. An attempt at self-pardon might also be self-defeating: it might encourage precisely the federal prosecution it’s intended to prevent.

Winning candidates usually don’t try to jail the losers. That’s for good reason: you want the incumbents to leave office peacefully, and you want the challengers to seek office peacefully.

Many people objected to the chant of “Lock Her Up” in 2016. It wasn’t because—or wasn’t just because—they believed Secretary Clinton to be factually innocent of any infraction of federal law whatsoever. It was also because a world in which elections determine who goes to prison is a world in which you can expect even more electoral mischief than we might see today.

Prosecuting former presidents is, in general, a bad precedent to set. That’s one reason why it’s important to deny the office to those whose conduct might force the issue. Whatever its virtues, the system of criminal law enforcement is not that great at handling crimes by those in high office. There’s a good deal of discretion and rough-justice inherent in the system, and when high officers are in the crosshairs, that can reallocate political power to the wrong people. (Cf. why J. Edgar Hoover was bad.)

Normally, the real checks on presidential lawbreaking aren’t criminal prosecutions and prison sentences. Rather, a presidential lawbreaker will face election losses, damage to their political party, and the undermining of a broader policy agenda. (Which is another reason why it’s important to deny the office to those who are relatively indifferent to such things.)

An attempted self-pardon, though, threatens to set precedent in the other direction. If future Presidents think they can get away with it, they might try all sorts of unusual things while in office, secure in their ability to self-pardon before they leave.

So, if President Trump claims to issue himself a pardon, the Department of Justice in a Biden Administration might see the balance as pointing the other way. They might see it as crucial to restore a consensus that such pardons are invalid. And the only effective way to do that, once a President has challenged the consensus publicly, would be to bring such a prosecution and to have the pardon tested in court.

In other words, an attempt by President Trump to grant a pardon to himself could well result in the very prosecution that the Biden DoJ might otherwise forgo.

(It’s yet another way in which the current administration can be both a symptom of the decay of crucial norms of behavior, and a cause of further such decay.)

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AG Barr: No Evidence Of Fraud That Would Have Changed Election Outcome

AG Barr: No Evidence Of Fraud That Would Have Changed Election Outcome

Tyler Durden

Tue, 12/01/2020 – 14:29

Attorney General William Barr said Tuesday the Justice Department has not uncovered evidence of widespread voter fraud that would change the outcome of the 2020 presidential election.

Last month, Barr issued a directive to U.S. attorneys across the country allowing them to pursue any “substantial allegations” of voting irregularities, if they existed, before the 2020 presidential election was certified.

And today, in an interview with The Associated Press, Barr said U.S. attorneys and FBI agents have been working to follow up specific complaints and information they’ve received, but they’ve uncovered no evidence that would change the outcome of the election.

“To date, we have not seen fraud on a scale that could have affected a different outcome in the election,” Barr told the AP.

Additionally, while Barr didn’t name Sidney Powell specifically, he added:

“There’s been one assertion that would be systemic fraud and that would be the claim that machines were programmed essentially to skew the election results. And the DHS and DOJ have looked into that, and so far, we haven’t seen anything to substantiate that.”

In the meantime, here are 20 ‘facts’ that don’t pass the smell test that perhaps AG Barr and his crack DoJ election team could probe a little harder…

We will not be holding our breath for President Trump’s response to AG Barr’s ‘findings’.

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Market Euphoria Surpasses Dot Com Levels: What’s An Investor To Do?

Market Euphoria Surpasses Dot Com Levels: What’s An Investor To Do?

Tyler Durden

Tue, 12/01/2020 – 14:25

As Knowledge Leaders Capital poetically puts it, there couldn’t be a greater bullish cocktail of recent news, with three COVID vaccines showing strong promise against a backdrop of zero interest rates, a record fiscal deficit and an uber-dove – Janet Yellen – in charge of it all.

There is another way of putting it: extreme euphoria, the likes of which surpass even the dot com bubble.

Naturally, stocks have taken the recent newsflow very well, with prices hitting record highs despite elevated valuations. In fact, as discussed here recently, the November rally has been driven by the most shorted stocks, taking the S&P 500 to technical levels not seen in years, while valuations are back to 2000 levels.

Confirming yet again what we said most recently last August in “Going Against The Wall Street Crowd Has Been The Most Profitable Strategy“, KLC notes that the November rally was clearly a short covering rally. As shown below, the most shorted stocks were up 28.48% since November 2, while the S&P 500 is up about 11.1%. The Goldman Sachs Most Shorted Index’s RSI reading is 84.14, only eclipsed by June 20, 2018.

However, as we also showed two weeks ago, shorts are now almost extinct, and as KLC notes, the tank appears to be running low. Indeed, looking at the median stock in the S&P 500, short interest is the lowest in 15 years.

However, it’s not just forced short covering that is driving the meltup: activity in the options market is just “downright euphoric” in and according to KLC, a huge source of potential dislocation. As of last week, call volumes were 4x normal, and even more striking: call buying has just gone parabolic and now represents about 40% of NYSE total volume. This is the highest reading in history.

At the same time, the put/call ratio is at multi-year lows.

To be sure, the euphoria is not just in calls, it’s everywhere with 92.5% of S&P 500 stocks now trading above their 200-day moving average, reaching an overbought level last seen in 2014.

AAII bulls minus bears hit +30 recently, a two standard deviation event not seen since January 2018.

At the same time, the Sentiment Trader percent of indicators showing excessive optimism minus the indicators showing excessive pessimism is at record levels of net optimism…

… while Sentiment Trader’s Options Speculation Index is in historically elevated territory, a function of the surge in call buying:

This flood into equities has pushed the forward P/E of the S&P 500 back to 2000 levels. This is also a function of the surge in money growth.

But, as KLC points out, across a variety of indicators this market euphoria is increasingly disconnected from economic variables, like consumer confidence which has recently rolled over.

The University of Michigan consumer sentiment has plunged to levels associated with much lower valuations.

Financial divergences are becoming more widespread too, with the SMART Money Flow index tumbling as stocks rise, indicating a continued distribution from whales to retail investors.

It is also disconnected from the potential escalation of the COVID pandemic, which will likely see even more cases in the coming weeks. Consider that Canada celebrated its Thanksgiving on Monday October 11, 2020. Daily new COVID cases have surged by 3.5x since the holiday.

If Canada is any template, the US could see daily new cases rise to 600,000/day by Christmas.

At the same time, as discussed last week, the economy faces a double whammy from the expiration of extraordinary unemployment benefits at the end of the year.

Meanwhile, inflationary pressures – no matter how hard the Fed tries to ignore them – are building: the PMI Composite Output Price index just posted its highest reading ever.

Inflation will only become more pressing if Democrats win the Senate: while still low, odds for a Democratic controlled Senate are rising, and were at 30% last.

With the disconnected between markets and the economy stretched like a rubberband, what are investors to do: go all in stocks hoping the biggest bubble in history keeps growing, or pull back?

And further to that point, the question whether gold a leading indicator for the stock market?

Consider that market leaders Apple and Amazon peaked on September 2, 2020 (yet still sit some 20% above their 200-day moving average). According to KLC, “the consolidation in these names portends further drops”:

Meanwhile gold peaked about a month before the FAAMGs, and has fallen 10%, testing the 200-day moving average (gold miners already crossed through their 200-day moving average on November 23, 2020).

The S&P 500 has underperformed gold since 2018, and this is the third time that the S&P 500 has rallied back to its downward
trendline relative to gold since 2018.

In this context, it shouldn’t come as a surprise that KLC believes that while stocks are poised to drop, gold should rise for two reasons: 1) TIPS yields and 2) USD.

TIPS yields have been falling all month, from -79bps to -93bps, yet gold has failed to recouple.

And while the DXY Index has broken down to new lows for the year, gold has also retreated. This means that gold has a catch-up period relative to the USD.

The authors’ conclusion: “Going into the end of the year, we think the risks in the equity market are high while gold and gold miners look relatively attractive.”

via ZeroHedge News https://ift.tt/2KYiH8w Tyler Durden

Berkeley Prof: “Law And Order” Is A Racist Dog-Whistle

Berkeley Prof: “Law And Order” Is A Racist Dog-Whistle

Tyler Durden

Tue, 12/01/2020 – 14:05

Authored by Benjamin Zeisloft via Campus Reform,

Ian Haney Lopez, a University of California-Berkeley law professor, created a series of videos that explains why terms like “law and order” are “dog whistles” for racism.

Race-Class Academy, a 12- part video series that shows viewers how to “beat dog whistle politics by building cross-racial and cross-class solidarity,” is based on Lopez’s book Dog Whistle Politics: How Coded Racial Appeals Have Reinvented Racism and Wrecked the Middle Class. The book describes how “politicians and plutocrats deploy veiled racial appeals to persuade white voters to support policies that favor the extremely rich yet threaten their own interests.”

Lopez, whospecializes in Critical Race Theory,” created the video alongside documentary director Jacob Kornbluth and social justice activist Brittaney Carter.

Lopez’s first video takes on 1964 Republican presidential candidate Barry Goldwater, who allegedly “wanted to return the country to a time when the government mainly worked for the wealthy.”

Lopez says that Goldwater and other Republicans used terms like “law and order” not to decry crime in general, but to condemn the civil rights movement.

Dog whistle politics “allows politicians to promote social hatreds, especially but not only racism, while pretending they honor equality,” explained Lopez.

Another video explains that politicians use “strategic racism” when engaging in dog-whistle politics. Lopez read a “dog whistle message” about rebuilding the economy from COVID-19 and stopping riots in the streets. Although most listeners — white, black, and Latino alike — agreed with the statement, Lopez said that their agreement was due to “unconscious racism.”

In a third video, Lopez said that the “wages of whiteness” were too attractive for white citizens to surrender in favor of an integrated society. He said that the same can be true of non-white individuals with lighter skin tones. He explained that “whiteness” today carries less weight, as it is now associated with Donald Trump and Charlottesville protesters.

Campus Reform reached out to Lopez for comment but did not receive a response.

via ZeroHedge News https://ift.tt/3mub6wm Tyler Durden

Poetry Tuesday!: “God’s Grandeur” by Gerard Manley Hopkins

Here’s “God’s Grandeur” (1877) by Gerard Manley Hopkins (1844-1889).

For the rest of my playlist, click here. Past poems are:

  1. “Ulysses” by Alfred, Lord Tennyson
  2. “The Pulley” by George Herbert
  3. “Harmonie du soir” by Charles Baudelaire
  4. “Dirge Without Music” by Edna St. Vincent Millay
  5. “Clancy of the Overflow” by A.B. “Banjo” Paterson
  6. “Лотова жена” (“Lotova zhena”, “Lot’s wife”) by Anna Akhmatova
  7. “The Jumblies” by Edward Lear
  8. “The Conqueror Worm” by Edgar Allan Poe
  9. “Les Djinns” by Victor Hugo
  10. “I Have a Rendezvous with Death” by Alan Seeger
  11. “When I Was One-and-Twenty” by A.E. Housman
  12. “Узник” (“Uznik”, “The Prisoner” or “The Captive”) by Aleksandr Pushkin

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Another problem with self-pardons

Jonathan Adler’s post sets out some of the legal problems with a purported self-pardon by the President. (For more, see the arguments that Andrew Hyman laid out here.)

Those arguments make sense to me, but there’s also a practical problem involved. An attempt at self-pardon might also be self-defeating: it might encourage precisely the federal prosecution it’s intended to prevent.

Winning candidates usually don’t try to jail the losers. That’s for good reason: you want the incumbents to leave office peacefully, and you want the challengers to seek office peacefully.

Many people objected to the chant of “Lock Her Up” in 2016. It wasn’t because—or wasn’t just because—they believed Secretary Clinton to be factually innocent of any infraction of federal law whatsoever. It was also because a world in which elections determine who goes to prison is a world in which you can expect even more electoral mischief than we might see today.

Prosecuting former presidents is, in general, a bad precedent to set. That’s one reason why it’s important to deny the office to those whose conduct might force the issue. Whatever its virtues, the system of criminal law enforcement is not that great at handling crimes by those in high office. There’s a good deal of discretion and rough-justice inherent in the system, and when high officers are in the crosshairs, that can reallocate political power to the wrong people. (Cf. why J. Edgar Hoover was bad.)

Normally, the real checks on presidential lawbreaking aren’t criminal prosecutions and prison sentences. Rather, a presidential lawbreaker will face election losses, damage to their political party, and the undermining of a broader policy agenda. (Which is another reason why it’s important to deny the office to those who are relatively indifferent to such things.)

An attempted self-pardon, though, threatens to set precedent in the other direction. If future Presidents think they can get away with it, they might try all sorts of unusual things while in office, secure in their ability to self-pardon before they leave.

So, if President Trump claims to issue himself a pardon, the Department of Justice in a Biden Administration might see the balance as pointing the other way. They might see it as crucial to restore a consensus that such pardons are invalid. And the only effective way to do that, once a President has challenged the consensus publicly, would be to bring such a prosecution and to have the pardon tested in court.

In other words, an attempt by President Trump to grant a pardon to himself could well result in the very prosecution that the Biden DoJ might otherwise forgo.

(It’s yet another way in which the current administration can be both a symptom of the decay of crucial norms of behavior, and a cause of further such decay.)

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Poetry Tuesday!: “God’s Grandeur” by Gerard Manley Hopkins

Here’s “God’s Grandeur” (1877) by Gerard Manley Hopkins (1844-1889).

For the rest of my playlist, click here. Past poems are:

  1. “Ulysses” by Alfred, Lord Tennyson
  2. “The Pulley” by George Herbert
  3. “Harmonie du soir” by Charles Baudelaire
  4. “Dirge Without Music” by Edna St. Vincent Millay
  5. “Clancy of the Overflow” by A.B. “Banjo” Paterson
  6. “Лотова жена” (“Lotova zhena”, “Lot’s wife”) by Anna Akhmatova
  7. “The Jumblies” by Edward Lear
  8. “The Conqueror Worm” by Edgar Allan Poe
  9. “Les Djinns” by Victor Hugo
  10. “I Have a Rendezvous with Death” by Alan Seeger
  11. “When I Was One-and-Twenty” by A.E. Housman
  12. “Узник” (“Uznik”, “The Prisoner” or “The Captive”) by Aleksandr Pushkin

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Florida Gov Slams Lockdown-Advocates As “Today’s Flat-Earthers”

Florida Gov Slams Lockdown-Advocates As “Today’s Flat-Earthers”

Tyler Durden

Tue, 12/01/2020 – 13:48

Republican Florida Gov. Ron DeSantis told reporters Monday that public schools will remain open despite the parabolic rise in COVID-19 cases, according to AP News. 

DeSantis strongly argued against lockdowns and stated they do not work:  

“Closing schools due to coronavirus is probably the biggest public health blunder in modern American history,” the governor said at a news conference.

“People who advocate closing schools for virus mitigation are effectively today’s flat-earthers.”

DeSantis said the state’s public school system would remain open while pointing out countries like Sweden, Denmark, Germany, and Switzerland all kept children in schools despite the rapid spread of the virus in their respective countries, adding that these European countries kept their schools open without negative consequences. 

The governor pointed out the rise in cases in the state, though he said other states have it worse.   

“We’ve seen cases increase but look at all the other states that are seeing them increase way, way more,” DeSantis said.

If you look at the per-capita hospitalizations, we are not even close to the top of the stuff. So I think people should put it in perspective.”

His comments come as Dr. Michael Osterholm, who serves as director of the Center of Infectious Disease Research and Policy at the University of Minnesota, and is the latest “scientist” to join Joe Biden “special coronavirus transition advisory team,” recently supported a “nationwide lockdownto drive down the number of new cases. 

A nationwide lockdown would drive the number of new cases and hospitalizations down to manageable levels while the world awaits a vaccine, Osterholm told Yahoo Finance on Wednesday.

“We could pay for a package right now to cover all of the wages, lost wages for individual workers for losses to small companies to medium-sized companies or city, state, county governments. We could do all of that,” he said. “If we did that, then we could lockdown for four-to-six weeks.”

There’s just one thing… as De Santis notes more vociferously than most, the real ‘science’ – where actual experiments are undergone, results noted, and theses concluded – shows that lockdowns do not work…

But as JPMorgan noted in a detailed study, there are no meaningful curve development differences between countries with and without strong curve intervention.

This makes the bank question if existing public health intervention (i.e., lockdown/ stricter social distancing) should remain in place next year, and leads JPM to conclude that “public health policy should consider approaches biased towards economic/pubic mental health over the urge to close the curve in 2021.”

To reach its “startling” conclusion, JPMorgan compared countries without lockdown, keeping the economy open under certain levels of social-distancing (Brazil, US, Sweden, Japan, Korea) to countries with strong curve intervention (UK, Germany, Italy, France, China, India) to see any meaningful differential in the curve development.

This outcome suggests that COVID-19 follows a similar diffusion and development process of other infectious diseases with certain life cycles. Therefore, JPMorgan would argue that public health policy should consider a bit more biased approach on economic/pubic mental health over the aim to close the infection curve in 2021 as lockdowns could be costly to the economy.

JPMorgan’s conclusion: “Keeping public activities open and tracing susceptible people leveraging technology looks to have better risk reward to us.” 

To further DeSantis’ point, a recent study in The Lancet found no correlation between the severity of lockdown and the number of covid deaths. 

On Sunday, Director of the National Institute of Allergy and Infectious Diseases Dr. Anthony Fauci told ABC’s “This Week” that children should be kept in school and the spread of the virus pandemic among children “is not really very big at all.” 

There’s enough evidence that supports schools should remain open – though Democrats continue their calls to lock down everything. 

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