Trump Pumps the Brakes on Obama-Era Fuel Standards

The Trump administration wants to freeze Obama-era requirements that force automakers to manufacture more fuel-efficient vehicles.

Under the Obama administration’s Corporate Average Fuel Economy (CAFE) standards, new cars sold in the U.S. must average about 54 miles per gallon by 2025. But a joint proposal released today by the Environmental Protection Agency (EPA) and Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) would freeze those standards for post-2020 models, meaning cars would only have to average about 37 mpg by 2026.

The Trump administration is also trying to stop California and other states from being able to impose their own, stricter fuel-efficiency standards. NBC reports that

by lifting the California waiver put in place in 1975 as part of the original Clean Air Act, President Donald Trump’s administration is effectively neutering a potentially significant challenge to any rollback of the Corporate Average Fuel Economy, or CAFE, standards. By setting levels of automotive CO2 emissions, California regulators could effectively retain higher mileage targets. The 10 other states and the District of Columbia that have adopted the tougher California guidelines would also be impacted by the White House move.

Acting EPA Administrator Andrew Wheeler says the proposal would make cars more affordable and save lives. “We are delivering on President Trump’s promise to the American public that his administration would address and fix the current fuel economy and greenhouse gas emissions standards,” a statement from Wheeler reads. “Our proposal aims to strike the right regulatory balance based on the most recent information and create a 50-state solution that will enable more Americans to afford newer, safer vehicles that pollute less. More realistic standards can save lives while continuing to improve the environment.”

Environmental groups are already expressing their outrage over the plan. “How can we justify rolling back the most effective tool we have to fix global warming?” Rob Sargent, energy program director for Environment America, tells USA Today. “This latest move by the Trump administration means that our cars will continue to pump billions of metric tons of carbon pollution into the atmosphere, further destabilizing the climate and sparking increasingly severe impacts of global warming,” he adds.

But automakers and free market groups have hailed the proposal. “The administration’s announcement that it will relax future fuel economy (CAFE) standards is good news for consumers,” Myron Ebell, director of the Competitive Enterprise Institute’s Center for Energy and Environment, said in a statement. “It means that the federal government will have slightly less control over the kinds of cars and trucks people can buy. It might even cause car prices to stop increasing so rapidly.”

The Alliance of Automobile Manufacturers and Global Automakers, two trade groups that represent some of the biggest carmakers in the world, issued a joint statement expressing similar sentiments. “We applaud the president and the administration for releasing this much anticipated proposal that includes a variety of standards for public consideration,” they said. “Automakers support continued improvements in fuel economy and flexibilities that incentivize advanced technologies while balancing priorities like affordability, safety, jobs and the environment.”

The EPA and NHTSA are giving the public 60 days to provide feedback to the new proposal. A final rule is expected this winter.

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Gartman: “We Fear That The “Music” Has Stopped”

It was exactly two weeks ago that Dennis Gartman urged readers of his newsletter to “prepare for a breakout in the Dow above 30,000.” Why? Because “the past 6 ½ months has been nothing more than a massive consolidation phase in what is still a bull market, consolidating the gains earned over the course of the bullish run that began in early ’16 when the Dow traded down to 15,700.” As a result “huge gains, perhaps sufficient to carry the Dow to 30,000+… as exaggerated and as stunning as that may sound… is technically possible.”

Well, no more. As he writes in his latest note, today “has the “opportunity,” if we can call it that, to become a very, very ugly day in the global capital markets with the dollar trading higher and thus putting pressure upon foreign shares right from the start.”

He explains:

US stock index futures are trading slightly for the worse as we write, with “earnings” still at the fore and with most of the earning’s surprised coming to the upside rather than to the down. But even these vaunted earnings shall take a very second seat to what is happening and what has just happened in China; US shares cannot and will not withstand the broadside hits from China today.

Furthermore, what two weeks ago was consolidation to push the market to 30,000 is now a game of musical chairs that is ending:

So, we fear that the great game of investment “musical chairs” may be ending; we fear that the “music” has stopped and we fear that everyone shall be dashing for that last available seat with injuries along the way. The “reversals” to the downside we had noted last week are still extant; the “gaps” to the downside in the US markets former leaders such as Twitter, Facebook, Netflix, Tesla et al are open and ominous. Protection of capital is now the first order of the day.

And what was until mid July a floor, is now resistance:

We hope… we sincerely hope… that we are wrong about the serious effects upon European and North American stocks that are to be derived from what has happened in China today and that they can be avoided. We hope… we do indeed very sincerely hope… that the virtual collapses in China can be insulated, isolated and over-come, but we very seriously doubt that to be so. A movement below 2,775 in the S&P futures shall be a serious breach of technical support; a movement below 25,000 in the Dow futures would be the same and so too a movement below 7200 in the NASDAQ futures. Keep those levels very, very much in mind; the future of the markets depends upon those levels holding.

Of course, the above may explain this headline:

  • NASDAQ 100 ERASES 0.7% DROP; S&P 500 PARES DECLINE TO 0.2%

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Seriously!!

And just like that, Nasdaq’s losses were gone…

It seems the open of the US equity markets is a massively bullish ‘event’?!

Apple buybacks rescuing the world with Johnny 5…

AAPL tops $204 (remember $207.05 makes it a ONE TRILLION DOLLAR company).

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Core Factory Orders Growth Slowest Since Feb, Durable Goods Revised Lower

While headline factory orders rose 0.7% MoM (as expected), ex-transports, it rose just 0.4% in June (admittedly the 12th monthly rise in a row). Final durable goods data was all revised lower on the month.

 

Durable Goods Orders final for June was revised down from +1.0% to +0.8% (but has rebounded from the 0.3% drop in May).

Capital Goods New Orders (ex-defense, ex-aircraft & parts) rose just 0.2% MoM (dramatically revised down from the preliminary 0.6% rise in June) suggesting the tax-cut-driven capex-spike was not as large as expected.

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City Council President Wants Tougher Enforcement of Airbnb. Oh, He’s Also President of the State’s Hotel Lobby.

For several years, lobbyists for the hotel industry have been engaged in efforts to get local and state governments to make life more difficult for short-term rental and home-sharing platforms like Airbnb and VRBO.

But what happens when the lobbyists literally are the government?

We soon might get to find out, thanks to Kenny Glavan. He’s the city council president in Biloxi, Mississippi, and he recently pushed the city to step up enforcement of tax and licensing requirements for short-term rentals. But Glavan also happens to be the president of the Mississippi Hotel and Lodging Association, the state arm of a national organization that’s been on the forefront of legal and regulatory battles with Airbnb in New York City, Nashville, Washington, D.C., and elsewhere.

The Biloxi Sun Herald reports that Glavan called a special meeting of the city council this week—and then showed up 45 minutes late for it—for the purpose of outlining a strategy to ensure “compliance” from short-term rentals. Renting a home for less than 30 days in Biloxi requires special permission from the city government and landlords have to pay the state’s hotel tax, of which the city takes a slice. In residential areas zoned for single-family homes, short-term rentals are not permitted at all. Glavan told the Sun Herald that he knows most of the short-term rentals in the city are not complying with those rules.

Glavan told the paper that he does not believe there is any conflict of interest that would prohibit him or the city council from voting on updates to the existing short-term rental rules—but this week’s hearing did not produce any concrete policy proposals and city officials will revisit the issue later, according to WDAM-TV.

It is also worth noting that another official from the Mississippi Hotel and Lodging Association was invited to testify at this week’s hearing. Linda Hornsby, the group’s executive director, called unlicensed vacation rentals a tax and safety issue, according to the Sun Herald.

If there are public safety issues with a short-term rental, cities probably have other tools they could use to address them. And if a home is considered safe for people to reside in year-round, there’s no reason it wouldn’t be safe for visitors to use. Often, claims about unsafe short-term rentals are red herrings used to garner support for restrictive policies.

Short-term rentals have brought both tourists and income to Biloxi. Data from Airbnb shows that homeowners in the city earned $762,000 during 2017 from more than 5,000 guests who booked stays via the platform. Across the whole of the state, Mississippi homeowners earned more than $6.4 million from more than 50,000 visitors, with more than 1,300 homes in the state rented for at least one night.

If Glavan and the hotel association plan to crack down on short-term rentals in pursuit of more tax revenue, they might end up cutting off valuable income from Biloxi residents and businesses—after all, those 5,000 tourists were eating meals and spending money on other things, too.

Mostly, the situation in Biloxi is just a good illustration of the stark power asymmetry that exists when governments regulate Airbnb, even when a lobbyist isn’t pulling double duty as a city council president. Hotels and their trade associations have attorneys, lobbyists, and longstanding relationships with state lawmakers and city officials. In short, they know how to get what they want—and they have the time and incentive to keep up to date with the ins and outs of policymaking.

Most homeowners renting spare rooms via platforms like Airbnb have no such government relations experience—and in Biloxi, they are probably right to wonder whether they will get a fair hearing from their hotel lobbyist/city council president.

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Catholic Church Changes Doctrine To Oppose Death Penalty

The death penalty is “inadmissible” because it attacks human “dignity,” the Roman Catholic Church says.

In the past, the Catechism of the Catholic Church has supported the death penalty “if this is the only possible way of effectively defending human lives against the unjust aggressor.” But in May, Pope Francis approved a major change to the doctrine that says capital punishment is wrong in all cases. The update was published today, the Associated Press reports.

“The church teaches, in the light of the Gospel, that the death penalty is inadmissible because it is an attack on the inviolability and dignity of the person and she works with determination for its abolition worldwide,” the catechism’s new text reads.

The catechism acknowledges that capital punishment has long been seen as a “means of safeguarding the common good.” But there is now “an increasing awareness that the dignity of the person is not lost even after the commission of very serious crimes,” the doctrine says. “In addition, a new understanding has emerged of the significance of penal sanctions imposed by the state. Lastly, more effective systems of detention have been developed, which ensure the due protection of citizens but, at the same time, do not definitively deprive the guilty of the possibility of redemption.”

According to Cardinal Luis Ladaria, prefect of the Congregation for the Doctrine of the Faith, the church’s teachings on capital punishment have simply evolved. “If, in fact the political and social situation of the past made the death penalty an acceptable means for the protection of the common good, today the increasing understanding that the dignity of a person is not lost even after committing the most serious crimes,” Ladaria says in a letter explaining the change.

Though the church’s teachings have evolved, Francis’ views on the subject have not. During a 2015 trip to the United States, where the death penalty is legal, he told Congress that “from the beginning of my ministry,” he has advocated for it to be abolished.

Previous popes have had differing opinions. Francis’ immediate predecessor, Pope Benedict XVI, did not oppose the death penalty in all cases, according to the BBC. But Pope John Paul II, who came before Benedict, generally advocated for imprisonment instead.

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Europe’s ‘Massive Capital Flight’ TARGET-2 Reality Revisited

Authored by Pater Tenebrarum via Acting-Man.com,

Capital Flight vs. The Effect of QE

Mish recently discussed the ever increasing imbalances of the euro zone’s TARGET-2 payment system again in response to a few articles which played down  their significance. He followed this up with a nice plug for us by posting a comment we made on the subject. Here is a chart of the most recent data on TARGET-2 available from the ECB; we included the four largest balances, namely those of  Germany, Italy, Spain and the ECB itself.

The most prominent (largest) TARGET-2 imbalances in the euro area have reached new record highs this year. Is or isn’t this a reason for concern?

TARGET-2 is a settlement system without a settlement mechanism – which is a major difference between the euro-system and the Federal Reserve system, which settles internal payment imbalances by transferring gold certificates. In our comment posted by Mish we inter alia explained the mechanics of TARGET-2, so there is no need to rehash them here.

Just one additional remark on the structure of the system: TARGET-2 claims and liabilities of National Central Banks (NCBs) are against the euro-system, not directly against each other.

During the euro area sovereign debt crisis the growing imbalances served as a very good barometer of capital flight from the periphery (and demonstrated how it was surreptitiously “funded”, or rather, masked). We concede that those who say that these imbalances don’t matter are at least partially correct as long as the euro zone does not break apart. Just like stock market overvaluation or the growing corporate debt-berg, it is one of the many things that don’t matter until they do.

The euro area’s narrow money supply M1 has more than doubled in the past decade. A large part of this expansion is the direct result of QE. This is why we say that the assertion that TARGET-2 liabilities that are created in the course of QE “don’t matter” is not entirely correct even if one assumes that the euro area will remain intact. After all, it can hardly be expected that printing such vast amounts of additional money will be without consequences.

If Italy were to leave the currency union and readopt the lira, it is said that the Bank of Italy would be forced to immediately settle its liabilities with the ECB. We are not quite sure how it would be expected do so in practice and how it can actually be forced to do so. Last we looked, the ECB didn’t have an army, so it cannot possibly threaten to invade Italy for a spot of retaliatory plundering.

Moreover, since five countries participating in the TARGET-2 system are not members of the currency union (Bulgaria, Croatia, Denmark, Poland and Romania), why should it not be possible for a country that leaves the currency union to remain a member of the payment system? And if so, why should it settle its TARGET-2 related liabilities?

There is one important aspect of the recent growth of TARGET-2 imbalances we didn’t mention in our comment. Whenever ECB chief Mario Draghi is asked about these imbalances at ECB press conferences, he likes to point out that they are these days largely related to QE or the “asset purchase program” (APP – apparently the euphemism “quantitative easing” was thought to require a euphemism of its own) and hence are no reason for concern.

Dr. Mesmer, currently head of the ECB under the pseudonym Mario the Dragon. OK, maybe he won’t need an army.

Obviously, the chart shown above should immediately make one wonder why the ECB itself is sporting a growing TARGET-2 liability. Does it owe money to itself now, and if so, why?

The ECB is a supranational entity and in terms of the payment system it is treated as if it were a country of its own. Most of the debt purchases under the QE program are conducted by NCBs – in particular, every NCB is tasked with buying sovereign bonds issued by its own country of domicile.

However, the ECB is also engaged in direct bond purchases, and these create TARGET-2 liabilities as they necessarily involve the flow of central bank money from the ECB  to various NCBs in whose jurisdictions it buys bonds. If the NCBs concerned have a positive TARGET balance, total TARGET balances will increase – (The total TARGET-2 balance increases if central bank money flows from a country with a liability to a country with a claim, and decreases if money flows in the opposite direction. By contrast, flows between two countries with claims – or two countries with liabilities – change the composition, but not the value, of the total TARGET-2 balance).

As Draghi notes in his press conferences, roughly 40% to 50% of the purchases under the APP are from non-resident institutions (which may in turn act on behalf of their customers). Most of the trading with such institutions takes place in the largest financial centers in Europe, with Frankfurt in Germany a particularly active one.

Consider for instance a London-based subsidiary of a US bank that settles trades in Italian bonds through a correspondence bank located in Frankfurt. If the Bank of Italy purchases Italian government bonds from this entity, central bank money will flow from Italy to Germany (i.e., from a country with a TARGET-2 liability to one with a claim) and the securities will be delivered to the Bank of Italy. Total TARGET balances will increase, and so will the claims of the BuBa and the liabilities of the Bank of Italy.

Indeed, the chart above shows that TARGET-2 claims and liabilities initially decreased when the crisis subsided after 2012 and started to climb again around the time the APP began. So far, so good – it is certainly fair to assume that the APP is the main driver of the growing imbalances ever since.

One could also say: as long as the APP is underway, it is actually difficult to tell to what extent a rising TARGET-2 balance is driven by QE or by capital flight. For instance, it inter alia seems likely that recent political upheaval in Italy has given fresh impetus to capital flight from there. In fact, the political situation in Italy was fraught with uncertainty ever since the resignation of the Renzi government, and the growth of Italy’s TARGET-2 liabilities has accelerated since then.

However, there is another important point which Mr. Draghi neglects to mention when he insists that growing TARGET-2 imbalances are merely an APP-related technicality.

A call for prayer.

It is certainly true that when the Bank of Italy purchases Italian government bonds in Frankfurt from international banks which access TARGET-2 through the BuBa, the above mentioned effects on claims and liabilities in the payment system will arise – but why do they just continue to grow?

Why are the sellers of these bonds not using the proceeds to purchase other investment assets in Italy? Or putting it differently: What does this represent, if not capital flight?

It seems to us it doesn’t really matter that the purchases are conducted under the APP –  if no offsetting capital flows into Italy take place subsequently, it still means that someone got out of Dodge and decided not to return.

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A Former Veterans Affairs Employee Tried To Defraud a Disabled Vet of $680,000

|||Danny Raustadt/Dreamstime.comA former Veterans Affairs employee has been convicted on federal fraud charges after using his position to write himself into a disabled veteran’s will.

A press release from the U.S. Attorney’s Office in the Eastern District of Tennessee details Kenneth Richard Devore’s long list of crimes, beginning with the attempted defrauding of a disabled veteran. The veteran, identified by the government as D.N., was discharged from the military in 1986. After D.N. was officially declared incompetent, Devore, a VA field examiner, was tasked in 2013 with making sure D.N. received his VA benefits and that his assets were managed responsibly.

But that’s not what Devore did. Instead, he concocted a plan that would make himself rich. Devore convinced the unsuspecting veteran that he needed a will and then helped him write the document, listing himself as the sole beneficiary of D.N.’s assets. Devore then drove D.N. to the post office to have the documents notarized. He also forged D.N.’s initials in a notice sent to Regions Bank, which the DOJ says was D.N.’s legal guardian. Devore was poised to defraud the veteran of more than $680,000.

Devore was forced to resign for misconduct in 2015 after the forged documents were uncovered. He then applied for a position with the National Background Investigations Bureau, which conducts investigations into candidates for government positions that require security clearance. (Its website promises “efficient and effective background investigations to safeguard the integrity and trustworthiness of the Federal workforce.”) He failed to disclose his misconduct at his old job, and he also claimed to have attended Canterbury University, a school that was fabricated by Devore himself. Despite all this, he was hired.

But the misdeeds don’t end there. While working for both the VA and the National Background Investigations Bureau, Devore was drawing a separate income from the VA after claiming in 2009 that he was 100 percent disabled, which suggests that the federal government is perhaps an even easier mark than a mentally incompetent veteran.

As Public Information Officer Sharry Dedman-Beard explained to Reason, Devore was indicted in February 2017 after the Veterans Administration Office of Inspector General began an investigation into his behavior. Dedman-Beard also confirmed that Devore was “unsuccessful in his efforts to obtain the victim’s money.”

On July 25, a federal jury convicted Devore of “six counts of wire fraud, one count of theft of public money over $1,000, one count of willful mail fraud, one count of conflict of interest of a federal employee, two counts of making or using a false writing and one count of making a false statement.” His sentencing is scheduled for November 5.

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Here’s Why Trump Is Hiking Chinese Tariffs To 25%

One of the cited reasons behind today’s market slide which started in Asia and promptly swept the rest of the globe, is a belated appreciation of Tuesday’s news that the Trump administration is now considering more than doubling proposed tariffs on a further $200 billion worth of Chinese goods to 25%, up from an original 10%.

But what exactly prompted Trump to push for the sharp reset in Chinese tariffs?

The answer was actually first given by Trump first, when in a candid CNBC interview the president said that he was not only watching the US trade deficit with China, but also its currency, which had dropped “like a rock” recently, suggesting that trade war was morphing into currency war after he berated the Fed for hiking rates and pushing the dollar higher.

Fast forward to today, when the WSJ gives some further color, noting that while “the administration didn’t spell out a particular rationale for increasing the tariff…. the reasons include anger over the Chinese government’s failure to approve the merger of U.S.-based Qualcomm Inc. and Dutch chip maker NXP Semiconductors, which forced the companies to scrap a deal aimed at boosting Qualcomm’s reach into new markets.”

The WSJ also cites “industry officials who have discussed the move with the White House” and who said that another, perhaps far more important reason for the tariff increase “is to compensate for the decline in the value of the yuan by about 6% over the past two months.

“It’s important countries refrain from devaluing currencies for competitive purposes,” a senior administration official said, and although he didn’t accuse China of acting in that fashion, the implication was clear.

Yet another reason that forced Trump’s hand is that as several banks have recently pointed out, the Yuan devaluation to date has effectively offset the adverse impact to Beijing from the $34 billion in tariffs enacted on Chinese goods, mainly machinery and components (to which China retaliated with tariffs on the same amount of U.S. exports, especially farm products).

But whatever the reason, the longer the trade war continues, the more Trump will find himself in a bind: on one hand he wants lower rates and a weaker dollar, on the other he keeps escalating by enacting ever bigger (and higher) tariffs on China, which are sure to prompt a broad inflationary response in the US economy as we have already discussed. Here is the WSJ:

The proposed tariff increase poses big risks for both the U.S. and global economy. A 25% tariff would boost the cost of a range of U.S. imports at a time when inflation has begun to pick up. It would become another factor for the Federal Reserve to consider as it decides how quickly to raise interest rates.

“This gets you nothing,” said Fred Bergsten, founder of the Peterson Institute for International Economics, a Washington, D.C., free-trade think tank. “It adds to inflation pressure and interest rates and [would] strengthen the dollar, which makes trade situation even worse” for the U.S., he said.

Worse, not only are US farmers getting crushed by Trump’s tariffs, but domestic companies are starting to feel the burn:

Keith Weinberger, chief executive of Empire Today, a flooring company in Northlake, Ill., said he “might be able to offset” a 10% tariff on his purchases of Chinese vinyl flooring. “But there’s nothing you can do about 25.”

Meanwhile, in corporate America, it appears that there is just one thing executives are talking about: tariffs.

As for China’s response, there are two angles: what it says, what it does and what it could do.

Starting with the latter, and continuing the tit-for-tat retaliation in the trade/currency war, higher-than-anticipated tariffs will encourage Beijing to let the yuan slide even more, exacerbating the currency war and potentially making Trump dictate monetary policy to the Fed.

In fact, China can keep devaluing the Yuan until its capital controls “firewall” finally cracks: recall that this was the trigger that prompted a global bear market (from which the US was spared) in 2015/2016 when China lost a total of $1 trillion in reserves to defend its current against an onslaught of capital flight.

Then there is what China says and on Thursday, Beijing urged the United States to “calm down” and return to reason after news that Trump may hike the tariffs from 10% to 25%.

Wang Yi, the Chinese government’s top diplomat, said U.S. efforts to pressure China would be in vain, urging its trade policymakers to “calm down”.

We hope that those directly involved in the United States’ trade policies can calm down, carefully listen to the voices of U.S. consumers…and hear the collective call of the international community,” Wang, a member of the country’s state council, or cabinet, said in Singapore. “The United States’ method of adding pressure will not, I’m afraid, have any effect,” Wang told reporters on the sidelines of a regional forum.

Finally, when it comes to what China does, look no further than the Yuan, whose sharp devaluation started in mid-June, when Trump formally launched the trade war, announcing that new tariffs on $50BN in Chinese products will come into effect, followed just days later with the launch of the next, $200BN round of tariffs.

This is how China has responded so far.

And with the Yuan hitting the lowest level against the dollar in a year overnight, the ball is now in Trump’s court. Any further escalation will only accelerate the Yuan devaluation, strengthen the dollar, and – eventually – breach China’s capital control firewall at which point 2018 will finally become 2015 all over again.

And the biggest irony: it Trump really wants to defeat China, instead of criticizing the Fed for hiking, he has to encourage Powell to do precisely what he has been doing so far, as Eric Peters explained over the weekend:

“The best way to bring Beijing to its knees is by running a tight monetary policy in the US. China has the world’s most overleveraged, fragile financial system.” In 2008, China’s total debt-to-GDP was 140%. It is now roughly 300%, while GDP is slowing.

The economy is held together by capital controls. If those fail, the whole system fails.” The capital flight in 2015/16 cost the government $1trln in reserves, and that was with ultra-dove Yellen in charge. Imagine what would have happened with Volcker at the helm. “The Chinese are dying to get their money out.”

All Trump has to do, is help them do it and watch as China’s economy crumbles from the inside.

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School ‘Bias Response Team’ OK, Says Judge, So Long As Students Not Disciplined for Speech: Reason Roundup

“Bias Response Team” doesn’t violate student rights, federal court rules. The University of Michigan’s “Bias Response Team” (BRT) isn’t an implicit threat to student free speech rights, said U.S. District Court Judge Linda V. Parker. The program relies on student reports of “biased” speech on campus and contacts the alleged speaker to offer guidance on speaking in a school-approved way. Students who are contacted are not required to respond.

The issue may seem relatively minor, but it was big enough for the U.S. Department of Justice to get involved in May, issuing a statement of interest that accused the University of Michigan of imposing “a system of arbitrary censorship of, and punishment for, constitutionally protected speech.”

Under the school’s bias response program, “a student who voices a controversial or unpopular opinion—or who seeks to use humor, parody, or satire when discussing sensitive topics—could face severe punishment,” argued Speech First, a D.C.-based advocacy group that filed the lawsuit in May.

But the school countered that the team isn’t a disciplinary body and student participation is dependent on their consent. So long as administrators at the state school are only offering helpful hints on how students can make their speech and opinions more “inclusive,” no one’s First Amendment Rights have been threatened the school argued—and Judge Parker agreed.

Last year, Liz Wolfe wrote here about college bias response teams and a self-congratulatory study from academics finding that they “created a safer, more welcoming campus community.” Robby Soave has covered the topic many times, noting how these bodies fail to distinguish between speech that could actually be considered harassing—at the University of Michigan, for instance—and speech that is merely “bothersome to an individual.”

In June, the University of Michigan changed its definitions of biased speech, narrowing the definitions of bullying and harassing..

This was already in the works and not in response to DOJ’s intervention, the school told Michigan Radio. “When the Speech First lawsuit called out some of the things we were already working on, we were well-prepared to update and simplify these definitions,” said University President Mark Schlissel. But he also contended that the group’s lawsuit had mischaracterized the school’s Bias Response Team, offering as support the fact that similar situations were in place at “many schools.”

FREE MINDS

Powerful Pegasus spy software targets Amnesty International. The human rights group Amnesty International said that spying software linked to the Israeli company NSO Group was sent to an Amnesty staffer and to a Saudi Arabian rights activist via WhatsApp in June.

“NSO Group is known to only sell its spyware to governments,” said Joshua Franco, Amnesty International’s head of technology and human rights, in a Wednesday statement.

The potent state hacking tools manufactured by NSO Group allow for an extraordinarily invasive form of surveillance. A smartphone infected with Pegasus is essentially controlled by the attacker – it can relay phone calls, photos, messages and more directly to the operator. This chilling attack on Amnesty International highlights the grave risk posed to activists around the world by this kind of surveillance technology. … Amnesty International is concerned that these could be used to bait and spy on activists in countries including Kenya, Democratic Republic of Congo and Hungary, in addition to the Gulf.

An Amnesty International investigation connected the link in the Pegasus-spreading message to hundreds of other “suspicious websites which had been previously connected to NSO Group,” it said. In addition:

Last year Toronto-based research group Citizen Lab uncovered NSO Group’s involvement in a similar spyware scheme in Mexico. Activists, journalists and opposition party leaders were targeted by false messages containing Pegasus software in an attempt to silence government opposition. Pegasus was also used to target the Emirati award-winning human rights defender Ahmed Mansoor, who has been in prison in the United Arab Emirates since March 2017.

FREE MARKETS

NYC says no thanks to $100 million from ride-sharing companies. Uber and Lyft offered to bail out struggling New York City taxi drivers in exchange for city regulators backing off plans to require a minimum wage for drivers and cap the number of new Uber and Lyft vehicles permitted in the city.

The $100 million “hardship fund” would “support individual taxi medallion owners,” reports The Verge. But it was “summarily rejected” by Mayor Bill de Blasio and city leaders. “It’s a little bit astonishing to us,” Lyft’s vice president of public policy Joe Okpaku told the publication.

Uber and Lyft claim a cap on vehicle licenses would send wait times soaring and driver earnings plummeting. They also say a cap would disproportionately affect outer borough residents, including low-income communities and people of color. “The cap bill would set things back to a time when service levels were horrible in the outer boroughs,” Okpaku said.

QUICK HITS

Pressure on social media companies to allow only certain kinds of “political content” means the government always wins.

https://news.vice.com/en_us/article/594555/facebook-quietly-deleted-homeland-security-ads-from-political-content-archive

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