Louisiana Bans BofA, Citi From Bond Sale Over “Restrictive Gun Policies”

The blowback against bank virtue signaling has begun.

Louisiana’s state’s bond commission voted 7 to 6 Thursday to ban Bank of America and Citigroup from working on its upcoming debt sale because of the banks’ “restrictive gun policies,” the state treasury said in a statement, according to Bloomberg.

As states begin using the bond market in retaliation against Wall Street and to stick up for the Second Amendment, Bank of America and Citigroup – the two top-ranked underwriters of long-term municipal debt – stand to lose millions in muni revenue.

“I personally believe the policies of these banks are an infringement on the rights of Louisiana citizens,” Treasurer John Schroder said in a statement. “As a veteran and former member of law enforcement, I take the Second Amendment very seriously.”

As a reminder, Bank of America in April said it would stop making new loans to companies that make assault-style rifles for civilian use. At the time, the bank said at least 150 of its employees had been affected by gun violence over the years.

One month earlier, Citigroup became the major banking institution to set restrictions on the firearm industry in March, when it announced plans to prohibit retailers that are customers of the bank from offering bump stocks or selling guns to people who haven’t passed a background check or are younger than 21. The restrictions applied to companies that rely on the bank for store credit cards, lending and other services.

Citigroup’s Brandee McHale, the company’s head of corporate citizenship, defended the bank’s policies at the state’s bond commission meeting. “This policy does not infringe on constitutional rights, and certainly not the right to bear arms,” she said at the meeting.

But if banks thought their recent “virtue signaling” would not cost them, Louisiana just showed the way how the counter-resistance can extract its own pound of flesh.

As Bloomerg notes, the ban is the latest example of how corporate America has been drawn into the nation’s polarizing debate over gun control.

Earlier this year, Chicago Mayor Rahm Emanuel proposed using the city’s business to push for stricter gun controls by limiting work with Wall Street firms that didn’t cut ties with companies that sold firearms to people under the age of 21 or dealt in high-capacity magazines. Emanuel’s diversion from the city’s inability to contain its own gun problems has not gone unnoticed, and just last weekend some 66 people were shot and 12 killed in the latest weekend of Chicago gun violence. There were no arrests made.

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Russia Deploys Nuclear-Capable Strategic Bombers Near Alaska

As NATO continues to “defensively” position an increasing number of troops, infrastructure, missile launchers, and missile shield systems, it appears the Russians are inching up their border protections at the other side of the world.

As AP reports, the Russian military says that two nuclear-capable strategic bombers have flown to the easternmost Chukotka Peninsula, near Alaska, as part of an air force exercise.

The Russian Defense Ministry said that the Tu-160 bombers flew about 7,000 kilometers (4,350 Miles) from their home base near Saratov in southwestern Russia to Anadyr, on Chukotka, before returning to their home base.

The ministry said the mission was the first time the bombers had flown to Chukotka, which faces Alaska across the Bering Strait.

The ministry said the air force exercise also involved the Tu-95 strategic bombers and tanker planes.

The move comes just three months after two Russian long-range bombers were intercepted off the coast of Alaska by a pair of F-22 Raptor fighter jets.

The Tu-95 bombers were flying in the Air Defense Identification Zone in the Bering Sea north of the Aleutian Islands, where they were visually identified and shadowed by the U.S. jets at 10 a.m., said Navy Capt. Scott Miller, a North American Aerospace Defense Command spokesman.

The bombers did not enter North American sovereign airspace, he said in a statement. Miller declined to say how close the bombers came to U.S. land. Fox News reported they flew as close as 55 miles off Alaska’s west coast.

The Russian military has increased the intensity and scope of its drills amid strain in relations with the U.S. and its allies.

We wonder if Sarah Palin can see the bombers from her house?

The flight demonstrated that Russian bombers could be deployed close to the U.S. and will likely prompt a response from the likes of John McCain imploring a ‘defensive’ attack to protect America’s northern border.

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Pat Buchanan Asks: “Can America Ever Come Together Again?”

Authored by Patrick Buchanan via Buchanan.org,

If ex-CIA Director John Brennan did to Andrew Jackson what he did to Donald Trump, he would have lost a lot more than his security clearance.

He would have been challenged to a duel and shot.

“Trump’s … performance in Helsinki,” Brennan had said, “exceeds the threshold of ‘high crimes & misdemeanors.’ It was … treasonous.”

Why should the president not strip from a CIA director who calls him a traitor the honor and privilege of a security clearance? Or is a top-secret clearance an entitlement like Social Security?

CIA directors retain clearances because they are seen as national assets, individuals whose unique experience, knowledge and judgment may be called upon to assist a president in a national crisis.

Not so long ago, this was a bipartisan tradition.

Who trashed this tradition?

Was it not the former heads of the security agencies – CIA, FBI, director of national intelligence – who have been leveling the kind of savage attacks on the chief of state one might expect from antifa?

Are ex-security officials entitled to retain the high privileges of the offices they held, if they descend into cable-TV hatred and hostility?

Former CIA chief Mike Hayden, in attacking Trump for separating families of detained illegal immigrants at the border, tweeted a photo of the train tracks leading into Auschwitz.

“Other governments have separated mothers and children” was Hayden’s caption.

Is that fair criticism from an ex-CIA director?

Thursday, The New York Times decried Trump’s accusation that the media are “the enemy of the people.”

“Insisting that truths you don’t like are ‘fake news’ is dangerous to the lifeblood of democracy. And calling journalists ‘the enemy of the people’ is dangerous, period,” said the Times.

Fair enough, but is it not dangerous for a free press to be using First Amendment rights to endlessly bash a president as a racist, fascist, sexist, neo-Nazi, liar, tyrant and traitor?

The message of journalists who use such terms may be to convey their detestation of Trump. But what is the message received in the sick minds of people like that leftist who tried to massacre Republican congressmen practicing for their annual softball game with Democrats?

And does Trump not have a point when he says the Boston Globe-organized national attack on him, joined in by the Times and 300 other newspapers, was journalistic “collusion” against him?

If Trump believes that CNN, MSNBC, The New York Times and The Washington Post are mortal enemies who want to see him ousted or impeached, is he wrong?

We are an irreconcilable us-against-them nation today, and given the rancor across the ideological, social and cultural chasm that divides us, it is hard to see how, even post-Trump, we can ever come together again.

Speaking at a New York LGBT gala in 2016, Hillary Clinton said:

“You could put half of Trump’s supporters into what I call the basket of deplorables … racist, sexist, homophobic, xenophobic, Islamophobic … Some of those folks … are irredeemable, but … they are not America.”

When Clinton’s reflections on Middle America made it into print, she amended her remarks.

Just as Gov. Andrew Cuomo rushed to amend his comments yesterday when he blurted at a bill-signing ceremony:

“We’re not going to make America great again. It was never that great.” America was “never that great”?

Cuomo’s press secretary hastened to explain, “When the president speaks about making America great again … he ignores the pain so many endured and that we suffered from slavery, discrimination, segregation, sexism and marginalized women’s contributions.”

Clinton and Cuomo committed gaffes of the kind Michael Kinsley described as the blurting out of truths the speaker believes but desperately does not want a wider audience to know.

In San Francisco in 2008, Barack Obama committed such a gaffe. Asked why blue-collar workers in industrial towns decimated by job losses were not responding to his message, Obama trashed these folks as the unhappy losers of our emerging brave new world:

“They get bitter, they cling to guns or religion or antipathy to people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.”

These clingers to their Bibles, bigotries and guns are the people the mainstream media, 10 years later, deride and dismiss as “Trump’s base.”

What Clinton, Cuomo and Obama spilled out reveals what is really behind the cultural and ideological wars of America today.

Most media elites accept the historic indictment – that before the Progressives came, this country was mired in racism, sexism, homophobia and xenophobia, and that its history had been a long catalog of crimes against indigenous peoples, Africans brought here in bondage, Mexicans whose lands we stole, migrants, and women and gays who were denied equality.

The people who cheer Trump believe the country they inherited from their fathers was a great, good and glorious country, and that the media who detest Trump also despise them.

For such as these, Trump cannot scourge the media often enough.

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Satanists Use Freedom of Religion To Call for Installation of Demonic Statue in Arkansas State Capitol

|||Twitter/KATVMarineSatanists have taken their latest free speech battle to the Arkansas State Capitol.

The Associated Press reports that the Satanic Temple unveiled a statue of Baphomet, a demonic, goat-headed creature, and demanded that either their statue be placed in the capitol building or a recently installed Ten Commandments statue be removed. “If you’re going to have one religious monument up then it should be open to others, and if you don’t agree with that then let’s just not have any at all,” Satanic Arkansas cofounder Ivy Forrester argued at a Thursday rally.

Arkansas requires legislative sponsorship for all monuments in the state capitol. The Ten Commandments was sponsored by Republican state Sen. Jason Rapert in 2017 and quietly installed last year. In response, the Satanic Temple sent a letter to lawmakers later that year asking for their statue to also be installed. The Ten Commandments was later destroyed when a man rammed his car into the display, but was reinstalled about four months ago.

According to a petition circulated by the rally sponsors, Lucien Greaves, spokesperson for the Satanic Temple, said the demands for the statue were a matter of free speech. “This is a rally for all people who hold sacred the founding Constitutional principles of Religious Freedom and Free Expression that have fallen under assault by irresponsible politicians like Senator Rapert,” Greaves said.

“It will be a very cold day in hell before we are ever forced to put up a monument like the profane one they brought,” Rapert said after criticizing the Satanists as unserious. A sign underneath the Baphomet statue read, “Future home of the Baphomet monument…Presented in the spirit of religious pluralism by: The Satanic Temple with a special thanks to Senator Jason Rapert.”

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UMich Sentiment Slumps To 11-Month Lows As ‘Spending Plans’ Plunge

Led by a collapse in Americans’ views of the current situation, University of Michigan’s Sentiment Survey dropped to 11-month lows, dramatically missing expectations for a rise.

  • Sentiment index decreased to 95.3 (est. 98) from prior month’s 97.9; lowest since Sept., below all analyst estimates

  • Current conditions gauge, which measures Americans’ perceptions of their finances, fell to 107.8 from 114.4 in July; 6.6-point drop is biggest since Aug. 2011

  • Expectations measure unchanged at 87.3

As Bloomberg reports, consumers showed a broad drop in confidence about major purchases, a possible caution signal for spending following strong gains in the second quarter.

Buying conditions for large household durable goods slipped to the lowest level in almost four years;

Vehicle-buying views were the least favorable since 2013;

and home-buying conditions were seen less favorably than any time in about a decade.

“Consumers voiced the least favorable views on pricing for household durables in nearly ten years,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement. “The recent favorable GDP report had only a small positive impact on growth prospects for the economy and on unemployment expectations.”

Respondents also continued to express concern about how trade tensions may affect the economy. Negative references to levies remained widespread, with 32 percent citing unfavorable references to the trade policy in early August, according to the report, following 35 percent in July.

And this adds to the recent spate of soft survey data catching down to the uglier reality of US economic real data…

Hope is not a long-term strategy.

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Tesla Tumbles As Going Private Chaos Turns “Ominous”

In the aftermath of Musk’s bizarre, emotional tell all in the NYT, as Tesla’s “going private” chaos turns more “ominous”, and as the SEC continues to get ever closer while new lawsuits for market manipulation lawsuits filed daily by disgusted shorts against Elon Musk, investors are taking a step back Tesla stock is tumbling, and this morning TSLA plunged as low as 311%, down 7% and far below the “going private” price of $420, down $20 last as the narrative so carefully sculpted by Musk for years appears to finally be crumbling.

Meanwhile, as Bloomberg notes, the debate over the company’s Model 3 car rages on. On Thursday Evercore ISI analysts said production of the sedan was continuing unabated in the midst of the going-private confusion, and Tesla seemed “well on the way” to achieving a steady weekly production rate of 5,000 to 6,000 units per week. The Bloomberg tracker for Model 3 also shows a similar uptick.

However, on Friday, UBS analyst Colin Langan said the basic Model 3, which was once expected to be priced at $35,000, would lose about $6,000 per car. Understandably, the cash burning company is currently is not offering the base model on its website.

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Police Raided Their Home and Business, Seized Their Money, and Nearly Ruined Their Lives Over Some Weed

When police officers raided the home and business of Paul and Maricel Fullerton and held the Woodland, California, couple at gunpoint in February 2016, they brought back a big haul.

A local multi-agency narcotics task force seized $55,000 from the Fullertons, along with 22 pounds of processed marijuana and several firearms. It had all the appearances of a major drug bust, except for the targets: a retired fire captain and a hospice nurse.

Now, after two years of protracted court proceedings that nearly ruined the Fullertons’ lives and careers, and briefly led to their separation from their child, Yolo County law enforcement will walk away with around $2,000, split between several agencies, and a misdemeanor marijuana conviction and to show for its efforts.

The Yolo County District Attorney finalized a settlement on Monday to return $53,000 that the Yolo Narcotics Enforcement Team (YONET) seized from the Fullertons. The Fullertons mostly prevailed, and all it cost them was around $100,000 in legal fees, fines, and other costs.

The Fullerton’s case was only one of more than 3,000 asset forfeiture cases initiated in California in 2016, according to an annual report by the state attorney general, but it’s a small example of both how the drug war is prosecuted and how it is changing: In the middle of the Fullerton’s case, California voters decided that the sort of offense that led heavily armed YONET agents to raid the Fullertons’ home and business should instead be treated as a minor nuisance or business license violation.

“After this long time period, yeah, I’m relieved, but I’m still angry inside most of all, because I know that there’s a system that’s basically broken,” says Fullerton, 46, of Woodland, California. “And if an honest, hardworking, disabled fire captain can get rolled up in these cogs of injustice, to me it isn’t really over.”

Fullerton was a firefighter for 25 years until an on-the-job spinal cord injury ended his career and left him with 12 screws and three metal plates in his neck. He found relief from prescription pain pills through medical marijuana. In 2012 he opened up his own hydroponics store, Lil’ Shop of Growers, in Woodland and joined a local medical marijuana collective.

But his new business didn’t sit well with local law enforcement, which began investigating the former fire captain after allegedly receiving a tip that he was selling large amounts of marijuana out of his store.

Local police claim Fullerton gave 1.7 grams of marijuana—about a joint-and-a-half—to an undercover officer and later agreed to sell the informant more marijuana for $300. Video evidence of the transactions in hand, YONET agents raided Fullerton’s store and home on Feb. 18, 2016.

Fullerton had worked for decades alongside local police and says he, his wife, and his business had a good reputation in town. In 2008, a “Heroes Award Luncheon” put on by the Yolo County Chapter of the American Red Cross recognized Fullerton and three other UC Davis firefighters for their role in saving a man’s life.

But in 2016 he ended up splayed on the ground, looking up the barrel of an assault rifle being leveled at him by a masked police officer.

Yolo County prosecutors hit both Paul and Maricel Fullerton with a host of felony charges including marijuana sales, possession of marijuana for sales, cultivation of marijuana, importation of a large-capacity rifle magazine, and child endangerment.

“Maricel was prosecuted despite having been told by officers that this wasn’t about her, because it gave them more leverage over Paul,” Ashley Bargenquast, the Fullertons’ lawyer in their civil forfeiture case, says. “It was really a fairly ugly prosecution that demonstrates some of the more political and more manipulative patterns of investigations.”

Worse, because of the child endangerment charge, the Fullertons’ daughter was temporarily placed in protective custody.

“They took my daughter away and she wasn’t allowed to come home for 10 days… I’ve totally lost my faith. It’s scary that they can just wrongfully charge people,” Maricel Fullerton told The Daily Democrat. “I’m in constant fear of what’s going to happen to us—to my daughter.”

The Fullertons dispute nearly every part of the law enforcement narrative. Fullerton says the police informant baited him with a sob story about a sick friend. He attempted to just give the marijuana to the informant, who insisted on shoving money into his hand. He also says he put that money in a fireman’s boot on the desk, which he uses to collect cash to donate to charity.

The Fullertons also say the gun safe in their house was unlocked—part of the justification for the child endangerment charge—because police opened it.

Prosecutors dropped the gun charges after it was shown they were legally owned, and while the case was dragging on, California voters approved a ballot initiative that legalized recreational marijuana. The ballot measure also transformed the Fullertons’ marijuana charges into misdemeanor offenses.

As part of a plea deal, Paul Fullerton pleaded no contest to misdemeanor possession of marijuana for sales and sale of marijuana. All remaining felony charges, including those against Maricel, were dropped. Fullerton maintains he did nothing wrong and only took the deal to make the rest of the charges go away.

It was far from the end of their troubles, though.

Fullerton had to wear an ankle bracelet for 90 days, but part of the sheriff’s department conditions included not using marijuana. Instead of returning to prescription pills, Fullerton went through a private company for his ankle bracelet, driving two hours each way to Oakland to get to his regular appointments and paying $4,800 for the pleasure.

Despite the charges against Maricel Fullerton being dropped, the case also impacted her career as a vocational nurse. Maricel was banned from working in any state-licensed facilities after a YONET officer appeared at her administrative hearing and testified against her.

And there was still the matter of the Fullertons’ money, which had been seized through civil asset forfeiture—a practice that allows police and prosecutors to seize property suspected of being connected to criminal activity, even if the owner isn’t convicted or even charged with a crime.

“They seized every single asset that I had,” Fullerton says. “Every single cent. I had to borrow money from my mom to get medication for my spinal injury.”

To get their cash back, the Fullertons had to prove in court that the money was not connected to drug activity. They eventually were able to account for $53,000 out of the $55,000 seized. The remaining $2,000, they say, was partly vacation savings and partly from the private sale of some used car parts, but they agreed to settle with the D.A.

California passed an asset forfeiture reform bill in 2016 requiring law enforcement to obtain a criminal conviction in forfeiture cases under $40,000. It also requires more detailed annual reporting from the state attorney general’s office on forfeiture activities.

However, the numbers for Yolo County don’t appear in the attorney general’s latest report. Local district attorneys and police departments are not required to participate in the report, and the Yolo County D.A. was one of eight across California that chose not to.

Bargenquast, whose firm, Tully & Weiss, has handled numerous similar marijuana cases, says the attitude among California law enforcement about marijuana is changing, but more education and training is needed.

“We’re slowly coming into the paradigm where business shortcomings are treated as business shortcomings, not cartel activity, but baby steps,” she says.

“You just have way too many individuals who remember being called heroes and good ol’ boys for clearing cartels and irresponsible grows out of national forests, and now they are treating patients or licensees the same way instead of acknowledging they’re the citizens they’re sworn to protect and serve,” Bargenquast continued.

The Yolo County District Attorney’s office did not respond to a request for comment. However, Yolo County prosecutor Amanda Zambor told the Davis Enterprise: “After a lengthy financial investigation we were only able to meet our burden of proof on a portion of the money being illegally obtained. In these cases it is often challenging to follow the money trail when there are numerous businesses with poor financial record keeping.”

The Fullertons are still seeking the return of their personal electronics, firearms, and 22 pounds of marijuana from the collective Fullerton belongs to, according to the Enterprise.

In the meantime, Fullerton says Lil’ Shop of Growers is still up and running, and in fact doing better than ever, although they are still digging themselves out of a hole two years later. But it permanently affected how the Fullertons thought about law enforcement.

“It ruined my whole trust with police officers,” Fullerton says. “My daughter is eight now, and she is scared of police officers now. I don’t want my daughter to be scared of police officers, you know? It’s just a very disheartening.”

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One Trader Rages “If Your Blood Isn’t Boiling” You’re Not Paying Attention

“If your blood is not boiling,” begins former fund manager and FX trader Richard Breslow, “it’s fine to cut out” he threatens as it seems market participant ‘centrally-planned conditioning-biased’ ignorance or perhaps just blind faith in BTFD because of PPT and Midterms has left the US equity market the lone pretender in a world of de-risking.

Via Bloomberg,

I understand it’s a Friday in August. I get that people are claiming they’ve had a hard week and want to call it a day. It’s no surprise that weekend-position-aversion remains a problem for risk takers. But with so much going on, if traders can’t be inspired to trade and challenge the status quo, it is safe to conclude that markets remain well and truly broken…Maybe forever.

Or perhaps we just sleep-walk until a proper blow-up forces some sort of response.

Of course, if we are confronted with the accusation that we should have acted differently, we can always claim Ambien made us do it.

As I’ve been sitting here:

  • the Turkish lira dropped as much as 7%,

  • the Shanghai Composite closed at its lowest level since January 2016

  • and German bunds are trading back below 30 basis points.

  • The Governor of the RBA just said what every central banker wishes they could — that he encourages a weaker currency.

  • The Malaysian ringgit is the latest Asian currency to experience the effects of slowing growth, sliding to the lowest in nine months.

  • BTPs remain at levels the Italian government can’t afford as their equity markets continue to noticeably underperform their brethren.

  • And U.S. equities are impervious to it all.

There’s a lot going on and traders need to ditch their base case that monetary policy will, at the end of the day, save all.

And the really dumb one, that calmer heads will ultimately prevail causing geopolitical and trade tensions to ease.

Did you ever think there would be such a systemic need for a new generation of aggressive hedge funds?

Another fatality of quantitative easing. Why stay up at night selling currency when you can just roll into the office at a decent hour and buy whatever the sovereign wealth funds are currently feasting on?

Incidentally, “base case” is now joining my list of banned expressions and words. It’s just commentator speak for I could be totally wrong but hope to be right somewhere down the line. And I’ll get back to you when it happens. While I’m at it, Purchasing Power Parity and the ground meat version of it are also out. It’s just a useless way into a misguided mean-reversion argument.

How appropriate as next week brings the 20th anniversary of when LTCM went hat-in-hand to banks. Make money, make money, lose it all. Sadly, another word in exile, “existential”, is due to return with great fanfare when the Italian government negotiates its budget with the EU.

Strictly off the record, bullies get their way until someone proves they can be stood up to. It may turn out that Erdogan is the unlikely bearer of that message.

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Trump Suggests Buying More Jet Fighters With Money Saved By Postponing Military Parade

Local politicians in the nation’s capital are to blame for delaying an absurd military parade that only one person wants, President Donald Trump said Friday. But hey, at least now we can purchase more jet fighters, he added.

The Pentagon announced Thursday that it was pushing back Trump’s military parade, originally scheduled for November, until 2019. The Department of Defense and the White House “have now agreed to explore opportunities in 2019,” said Pentagon spokesperson Col. Rob Manning.

The timing of Thursday’s announcement was curious. The Associated Press had reported early in the day Thursday that the parade would cost an estimated $92 million—more than three times the White House’s highest projected cost. Trump responded Friday by blaming “the local politicians who run Washington, D.C.”

In a pair of tweets this morning, Trump complained about the cost of organizing a flamboyant display of militarism in one of the most security obsessed cities in the world. “When asked to give us a price for holding a great celebratory military parade, they wanted a number so ridiculously high that I cancelled it,” the president wrote.

“Never let someone hold you up! I will instead attend the big parade already scheduled at Andrews Air Force Base on a different date, & go to the Paris parade, celebrating the end of the War, on November 11th,” he tweeted. “Maybe we will do something next year in D.C. when the cost comes WAY DOWN.”

Trump also suggested that with the money he’s saving the country by not holding the parade in November, “we can buy some more jet fighters!” That assertion seems questionable at best, as a single F-35A fighter jet costs at least $98 million, according to defense contractor Lockheed Martin. That figure doesn’t include operating costs.

While Trump cited the parade’s high cost as the reason for its postponement, Defense Secretary James Mattis pushed back yesterday on the $92 million cost estimate. “Whoever told you that is probably smoking something that is legal in my state, but not in most states,” he told reporters. “I’m not dignifying that number with any reply.”

D.C. Mayor Muriel Bowser, meanwhile, responded to Trump’s tweet this morning by claiming she “finally got thru to the reality star in the White House.”

Though the military parade might still happen in 2019, it would probably be best to just ditch the idea. At least one poll shows that military personnel don’t seem to want it. And even the American Legion said in a statement today that until “we can celebrate victory in the War on Terrorism and bring our military home, we think the parade money would be better spent fully funding the Department of Veterans Affairs and giving our troops and their families the best care possible.”

As Reason‘s Eric Boehm argued yesterday, the parade wouldn’t be worth it even if it didn’t cost anything. “Marching a bunch of tanks through the capital city is something that should only happen in military dictatorships, dystopian movies, and France,” Boehm wrote. “This isn’t something that stable, democratic countries should do, and it’s certainly not something that American taxpayers should have to fund.”

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“Deeply Troubling” – Wall Street Journal Implores “What Was Bruce Ohr Doing?”

The Wall Street Journal continues to counter  the  liberal mainstream media’s Trump Derangement Syndrome, dropping uncomfortable truth-bombs and refusing to back off its intense pressure to get to the truth and hold those responsible, accountable (in a forum that is hard for the establishment to shrug off as ‘Alt-Right’ or ‘Nazi’ or be ‘punished’ by search- and social-media-giants).

And once again Kimberley Strassel  – who by now has become the focus of social media attacks for her truth-seeking reporting – does it again this morning, as she points out – hours after former CIA Director Brennan threw a tantrum over having his security clearance removed – that while Justice has released some damning documents – particularly on what Bruce Ohr was doing – much of the truth is still classified.

Via The Wall Street Journal,

What Was Bruce Ohr Doing?

The Federal Bureau of Investigation and Justice Department have continued to insist they did nothing wrong in their Trump-Russia investigation. This week should finally bring an end to that claim, given the clear evidence of malfeasance via the use of Bruce Ohr.

Mr. Ohr was until last year associate deputy attorney general.

He began feeding information to the FBI from dossier author Christopher Steele in late 2016 – after the FBI had terminated Mr. Steele as a confidential informant for violating the bureau’s rules. He also collected dirt from Glenn Simpson, cofounder of Fusion GPS, the opposition-research firm that worked for Hillary Clinton’s campaign and employed Mr. Steele. Altogether, the FBI pumped Mr. Ohr for information at least a dozen times, debriefs that remain in classified 302 forms.

All the while, Mr. Ohr failed to disclose on financial forms that his wife, Nellie, worked alongside Mr. Steele in 2016, getting paid by Mr. Simpson for anti-Trump research. The Justice Department has now turned over Ohr documents to Congress that show how deeply tied up he was with the Clinton crew – with dozens of emails, calls, meetings and notes that describe his interactions and what he collected.

Mr. Ohr’s conduct is itself deeply troubling. He was acting as a witness (via FBI interviews) in a case being overseen by a Justice Department in which he held a very senior position. He appears to have concealed this role from at least some superiors, since Deputy Attorney General Rod Rosenstein testified that he’d been unaware of Mr. Ohr’s intermediary status.

Lawyers meanwhile note that it is a crime for a federal official to participate in any government matter in which he has a financial interest. Fusion’s bank records presumably show Nellie Ohr, and by extension her husband, benefiting from the Trump opposition research that Mr. Ohr continued to pass to the FBI. The Justice Department declined to comment.

But for all Mr. Ohr’s misdeeds, the worse misconduct is by the FBI and Justice Department.

It’s bad enough that the bureau relied on a dossier crafted by a man in the employ of the rival presidential campaign. Bad enough that it never informed the Foreign Intelligence Surveillance Court of that dossier’s provenance. And bad enough that the FBI didn’t fire Mr. Steele as a confidential human source in September 2016 when it should have been obvious he was leaking FBI details to the press to harm Donald Trump’s electoral chances. It terminated him only when it was absolutely forced to, after Mr. Steele gave an on-the-record interview on Oct. 31, 2016.

But now we discover the FBI continued to go to this discredited informant in its investigation after the firing—by funneling his information via a Justice Department cutout. The FBI has an entire manual governing the use of confidential sources, with elaborate rules on validations, standards and documentation. Mr. Steele failed these standards. The FBI then evaded its own program to get at his info anyway.

And it did so even though we have evidence that lead FBI investigators may have suspected Mr. Ohr was a problem.

An Oct. 7, 2016, text message from now-fired FBI agent Peter Strzok to his colleague Lisa Page reads: “Jesus. More BO leaks in the NYT,” which could be a reference to Mr. Ohr.

The FBI may also have been obtaining, via Mr. Ohr, information that came from a man the FBI had never even vetted as a source—Mr. Simpson. Mr. Steele had at least worked with the FBI before; Mr. Simpson was a paid political operative. And the Ohr notes raise further doubts about Mr. Simpson’s forthrightness. In House testimony in November 2017, Mr. Simpson said only that he reached out to Mr. Ohr after the election, and at Mr. Steele’s suggestion. But Mr. Ohr’s inbox shows an email from Mr. Simpson dated Aug. 22, 2016 that reads, in full: “Can u ring.”

The Justice Department hasn’t tried to justify any of this; in fact, last year it quietly demoted Mr. Ohr. In what smells of a further admission of impropriety, it didn’t initially turn over the Ohr documents; Congress had to fight to get them.

But it raises at least two further crucial questions.

First, who authorized or knew about this improper procedure? Mr. Strzok seems to be in the thick of it, having admitted to Congress interactions with Mr. Ohr at the end of 2016. While Mr. Rosenstein disclaims knowledge, Mr. Ohr’s direct supervisor at the time was the previous deputy attorney general, Sally Yates. Who else in former FBI Director Jim Comey’s inner circle and at the Obama Justice Department nodded at the FBI’s back-door interaction with a sacked source and a Clinton operative?

Second, did the FBI continue to submit Steele- or Simpson-sourced information to the FISA court? Having informed the court in later applications that it had fired Mr. Steele, the FBI would have had no business continuing to use any Steele information laundered through an intermediary.

*  *  *

Strassel concludes with the point that she and The Wall Street Journal Editorial Board have been hammering for months…

We could have these answers pronto; they rest in part in those Ohr 302 forms. And so once again: a call for President Trump to declassify.

It’s time for things to get more serious than slaps on the wrist, firings, and self-inflicted black-eyes!

 

 

 

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