Joe Biden Wants To Spend Trillions on Infrastructure. His Environmental Reforms Ensure He’ll Have To.


reason-power

President Joe Biden has ambitious plans to “Build Back Better” by spending trillions more on a broad array of infrastructure projects. At the same time, his administration wants to reverse regulatory reforms that tried to speed up the delivery of those projects.

Late last week, the White House’s Council on Environmental Quality (CEQ) announced that it intends to undo the prior president’s changes to the regulations implementing the National Environmental Policy Act (NEPA).

Passed in 1969, NEPA requires federal agencies to study the environmental impacts of actions they take, whether that’s funding a new highway or approving a new pipeline. Over the decades, the burden imposed by NEPA has grown: The environmental reviews it mandates take years on average to complete and can run hundreds if not thousands of pages.

Donald Trump’s administration tried to streamline things a bit by limiting the environmental effects that agencies had to examine and by putting definitive time and page limits on NEPA reviews.

Even those marginal changes, implemented in September 2020, proved controversial with many environmentalists. Their concerns have resonated with the Biden administration.

“The basic community safeguards we are proposing to restore would help ensure that American infrastructure gets built right the first time, and delivers real benefits—not harms—to people who live nearby,” said CEQ Chair Brenda Mallory on Thursday.

The proposed rule published by the CEQ in the Federal Register would make a number of changes.

Most significantly, it would restore requirements that agencies’ NEPA reviews take into account the indirect and cumulative effects of projects.

The short-lived Trump changes said agencies generally didn’t have to study impacts of projects that are “remote in time, geographically remote, or the product of a lengthy causal chain.” According to the Biden administration, that narrower requirement prevented agencies from properly accounting for longer-run climate change impacts.

The Trump administration’s NEPA reforms also treated CEQ rules as a ceiling, meaning agencies couldn’t impose additional requirements of their own. The Biden administration would instead treat CEQ rules as a floor, giving agencies the power to perform reviews that go beyond what the council requires.

Environmentalist groups have generally praised these changes.

“Restoring the obligation to consider direct, indirect, and cumulative emissions is critical for disclosure of climate and environmental justice impacts,” the Sierra Club announced last week. “Reviews that don’t look at indirect and cumulative effects of fossil fuel projects (such as coal mines, gas leases, pipelines), miss 95 percent of climate emissions and their impact on communities.”

Other NEPA experts are more critical, arguing that this is an ineffective and potentially counterproductive way to address climate change.

“All it does is create a little more paperwork,” says Eli Dourado, a senior research fellow at Utah State University’s Center for Growth and Opportunity. “Given the need to build a lot of infrastructure and new technologies and physical stuff in the world, NEPA is probably on net harming our response to climate change.”

Indeed, NEPA has slowed down a number of projects that environmentalists would typically support for their emission-reducing potential.

The U.S. Bureau of Ocean Energy Management’s 2019 decision to perform a cumulative impact analysis under NEPA of a massive wind farm being constructed off the coast of Massachusetts has significantly delayed that project.

It will likewise take years for the federal government to perform a NEPA-mandated review of a plan to charge drivers a toll to enter lower Manhattan. Environmentalists and transit advocates have generally praised that congestion pricing plan for its potential to reduce carbon emissions and to raise money for public transit. The tolls were supposed to be up and running in January 2021. The need to perform an environmental assessment for the project will mean that it now won’t start until 2023 at the earliest.

All the additional green investments the Biden administration and Democrats in Congress want to fund with their $1 trillion infrastructure bill and $3.5 trillion Build Back Better legislation could run into a similar fate.

“It’s making some of the infrastructure projects they want to do radically more expensive,” says Neil Chilson, a senior research fellow at Stand Together. He says the regulatory changes will also empower the nation’s NIMBYs to slow down projects they dislike.

The NEPA process allows third parties to file complaints with federal agencies claiming that the environmental impacts of a project haven’t been thoroughly studied enough. Once that complaint is raised, the agency then has to decide if there’s any merit to it.

“That process just takes forever,” says Chilson, during which time project sponsors are prevented from moving ahead with whatever they’re trying to build. NEPA also allows third parties to sue over supposedly inadequate environmental reviews, which can drag things out even longer.

By expanding the number of effects that have to be considered in the NEPA process, the Biden administration is giving project opponents more room to claim that an environmental review is insufficient.

Federal agencies and private project sponsors, in turn, will have to spend more time preparing litigation-proof environmental documents to preempt these complaints, says Chilson.

That could be particularly damaging for solar plants that are proposed to be constructed on public lands in the American west, and which have attracted fierce opposition from local groups concerned about their impact on endangered species and recreational lands.

The White House isn’t getting rid of every Trump NEPA reform. The new rule doesn’t touch requirements that environmental assessments be no more than 75 pages long and environmental impact statements no longer than 300 pages. “Shot clock” requirements that these reviews be completed in one to two years are also left in place.

CEQ has said that reversing those Trump-era tweaks is only the first phase of its planned rulemaking. In a second phase, the administration says, it plans to make more substantive changes that create “efficient and effective environmental reviews.”

That leaves open the possibility that we’ll get more productive reforms later on, says Dourado.

“Nobody says everything is fine in permitting world. I expect [the administration] to at least have some constructive ideas for how to improve permitting,” he tells Reason.

The average Environmental Impact Statement—the most stringent level of review mandated by NEPA—takes 4.5 years to complete and runs around 669 pages. That’s up from 2.2 years in the 1970s.

Dourado thinks the federal government should expand the use of categorical exclusions that allow projects to skip the NEPA process entirely. Chilson says Congress should take still more sweeping action if it really wants to pare back NEPA—which, he notes, can trip up a lot more than just infrastructure projects.

Everything from approval of new vaping products to forest management programs has to go through the NEPA process. Every year, federal agencies produce roughly 176 environmental impact statements and 10,000 environmental assessments (a less onerous version of NEPA review that can still take years).

Because “it’s been interpreted so broadly, and because the federal government has a hand in the approval of so many things, many things that would otherwise be private changes now implicate NEPA and all the red tape that comes with it,” says Chilson.

Sens. Mike Lee (R–Utah), Ted Cruz (R–Texas), and Kevin Cramer (R–N.D.) have proposed a package of bills that would permanently streamline the NEPA process. The infrastructure bill passed by the Senate also includes an extension of some temporary NEPA streamlining measures.

Not all, or even most, of the new infrastructure spending Congress is mulling should be considered a wise investment. But Biden’s proposed NEPA changes only ensure that more federal money will be spent on red tape.

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Mexican Cartel Seen Firing Machine Guns Into US, Above National Guard Recon Post 

Mexican Cartel Seen Firing Machine Guns Into US, Above National Guard Recon Post 

President Biden’s inconsistent border policies have transformed the Mexico–US border into a chaotic mess. An immigration crisis continues to fester, and Mexican cartel members are now firing machine guns across the border. 

Fox News’ Bill Melugin captured the gunfire on camera Thursday from Roma, Texas, and said Guardsmen stationed at an observation post on the border had bullets zipping over their heads. Guardsmen he was with were stunned by the rare gunfire into the US. 

Guardsmen told Melugin cartel members with “AK-47s” have taunted them while standing on the otherwise of the Rio Grande. 

The Texas Department of Public Safety (DPS) said Wednesday there had been several instances of cartel members brandishing weapons this week. The gunmen were photographed wearing military tactical vests with assault rifles.

“As we work closely with the Texas Military Department, any potential threats toward law enforcement and the Texas Military Department will be fully investigated, and those responsible will be arrested and charged to the fullest extent of the law,” the Texas DPS said in a statement.

Texas has been committed to securing the southern border while the Biden administration turns a blind eye to the crisis. 

Governor Greg Abbot has continued increasing Guardsmen into the area to stabilize the situation as he warns of “increased caravans attempting to cross the border caused by Biden’s open border policy.”

Meanwhile, the border crisis continues to drag down Biden’s polling numbers nationwide as Republicans highlight the reversal of former President Trump’s strict border policies that have resulted in today’s mess. Republicans could gain an edge in the midterms next year, possibly “retaking the House majority,” said Susan Crabtree via RealClearPolitics, due to Biden’s inability to arrest migrant US inflows. 

Tyler Durden
Mon, 10/11/2021 – 16:40

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

Radically Incomplete Reports of Legal Proceedings as Libels

Introduction

Say that I accurately write that you have been convicted of a crime, but I knowingly fail to mention that the conviction has been reversed.[1] To make the matter particularly stark, say the conviction has been reversed on grounds that show you were innocent (rather than just for procedural reasons). Or say that I accurately write that you were charged with a crime, but knowingly fail to mention that you were acquitted.

Is that libelous? This question arose in the course of my writing a separate article in this issue, which deals with whether a later reversal triggers an obligation to remove or modify the account of the original conviction.[2] But the question is important even apart from that separate question, so the editors kindly allowed me to answer it in this separate short article.

[I.] Libel by Omission

It turns out that the cases dealing with this question overwhelmingly answer it “yes.” The law recognizes that even something that is literally true may be so incomplete and therefore misleading in its “gist”—its overall tenor—that it might be actionable libel. “[T]he law of libel has long recognized that omissions alone can render a statement false.”[3] “[M]aterial omission of facts that would render the challenged statement(s) non-defamatory” can yield “implied defamation”—”a defendant does not avoid liability by simply establishing the truth of the individual statement(s); rather, the defendant must also defend … the omission of certain facts.”[4]

The classic example is Memphis Pub. Co. v. Nichols, where the Memphis Press-Scimitar wrote,

A 40-year-old woman was held by police in connection with the shooting [of Mrs. Ruth Nichols] with a .22 rifle. Police said a shot was also fired at the suspect’s husband.

Officers said the incident took place Thursday night after the suspect arrived at the Nichols home and found her husband there with Mrs. Nichols.[5]

What do you, as a reasonable reader, think happened? Well, here’s what really happened, but the story neglected to mention: “The undisputed proof showed that not only were Mrs. Nichols and [the shooter’s husband] at the Nichols’ home but so, also, were Mr. Nichols and two neighbors, all of whom were sitting in the living room, talking, when [the shooter] arrived.”[6]

The article was therefore a half-truth, with “the clear implication … that Mrs. Nichols and [the shooter’s husband] had an adulterous relationship”[7]—an implication that would have been absent had the omitted details been included. And this made the story potentially actionable as libel. Such a theory is sometimes called libel by omission, which is a special case of libel by implication or by innuendo.[8]

[II.] Libel by Omission of Critical Legal Context

Such libel-by-omission claims generally prevail only in cases where the omission is particularly stark and critical to the story. But omitting a reversal when talking about a conviction would generally qualify. “It is a misleading half-truth to say that a person was convicted … without including the fact that his conviction was overturned on appeal.”[9]

Likewise, liability may thus be imposed when “a defendant widely publicizes that a plaintiff was charged with a criminal offense but knowingly [does] not mention that the charge was found to be baseless.”[10] “The failure to report that [plaintiff] was acquitted, leaving the impression that he was guilty of the [charge mentioned in the article] was clearly more damaging to his reputation in the mind of the average reader than the truth would have been,” which is enough to make the partial account libelous.[11]

[III.] Not a “Full and Fair” Report

Another way of reaching the same result is through the “full and fair” element of the fair report privilege. Usually, fair reports about court proceedings and court documents are immune from defamation liability, regardless of whether there may have been some false statements within those proceedings or documents. The privilege exists because people need to be free to discuss formal allegations made in official court proceedings being considered by governmental actors.

But the reports have to be “full, fair, and accurate reports”[12] and “[a] report may not be ‘fair’ if it fails to reveal the ultimate outcome of the reported accusation.”[13] “[A]ccurately reporting a … charge … but failing, in the same article, to report the subsequent dismissal of the charge is not covered by the fair-report privilege.”[14] “The fair report privilege may not protect a publication that only reprints the allegations but not the favorable verdict.”[15]

In a sense, this is a version of the libel by omission theory:

  1. Under the libel law republication rule, repeating false and reputation-injuring allegations is generally itself libelous, even if the repetition accurately summarizes the allegations: saying “A said that P stole money from petty cash” is libelous if P didn’t steal the money, even if it’s accurate that A said that P stole the money.[16]
  2. The fair report privilege is a limit on this republication rule. Saying “The indictment said that P stole money from petty cash” or “The civil complaint said that P stole money from petty cash” isn’t libelous, even if P didn’t steal the money, so long as the summary of the legal documents is full, fair, and accurate.[17]
  3. But saying “The indictment said that P stole money from petty cash,” but omitting P‘s acquittal, is no longer a “full and fair” report, precisely because it omits an important fact.

In such a situation, “[t]he falsity … lies not in what was said but in what was left unsaid…. For example, a person who is arrested erroneously, based on mistaken identity, thereafter should not be subject to media reports citing his arrest while ignoring his subsequent vindication.”[18]

[IV.] No Liability for Not Reporting Settlements or Expungements

To be sure, sometimes omitting the follow-up information doesn’t sharply change the gist of the original information: an expungement or settlement, for instance, doesn’t demonstrate innocence of the original charge. In that situation, omitting that information isn’t libelous. Thus, for instance, it isn’t libelous to mention an arrest without mentioning that it was expunged or that charges were dismissed for non-innocence-related reasons.[19]

It similarly isn’t libelous to mention that a lawsuit was filed without mentioning that it was settled.[20] “A settlement … is different from a favorable verdict. A settlement generally ‘reflects ambiguously on the merits of the action’ and is not a determination of whether the allegations are true or false.[21]

But mentioning a prosecution yet omitting the acquittal may well be libelous, precisely because it does change the gist of the overall story. Likewise with mentioning a conviction yet omitting the reversal. Reporting on lawsuits and criminal prosecutions is broadly protected against libel liability—but not when the outcome of those proceedings is omitted, and the reader is left hearing only about an indictment or conviction and not the acquittal or reversal.

[1] For purposes of this article, it’s enough to assume that I knowingly fail to mention this; but in principle I could be liable if I merely negligently fail to mention it, if you’re a private figure and you can show that you have suffered damages as a result of my negligent falsehood.

[2] See Eugene Volokh, The Duty Not to Continue Distributing Your Own Libels, __ Notre Dame L. Rev. __ (2022).

[3] Morse v. Fusto, 804 F.3d 538, 549 n.8 (2d Cir. 2015).

[4] Toney v. WCCO Television, Midwest Cable & Satellite, Inc., 85 F.3d 383, 387 (8th Cir. 1996).

[5] 569 S.W.2d 412, 414 (Tenn. 1978).

[6] Id.

[7] Id. at 421.

[8] See, e.g., Strada v. Connecticut Newspapers, Inc., 477 A.2d 1005, 1012 (Conn. 1984).

[9] Wiest v. E-Fense, Inc., 356 F. Supp. 2d 604, 610 (E.D. Va. 2005); see also, e.g., Martin-Trigona v. Kupcinet, No. 87 C 3347, 1988 WL 93945, *5 (N.D. Ill. Sept. 2); Purcell v. Westinghouse Broad Co., 191 A.2d 662 (1963); LaMon v. Butler, 722 P.2d 1373 (Wash. Ct. App. 1986), aff’d on other grounds, 770 P.2d 1027 (Wash. 1989); Karuza v. Chance, 81 Wash. App. 1014, 1014 (1996) (characterizing LaMon as concluding that “[a] true statement can also be defamatory if it has been legally voided”); Martin v. Griffin, No. CV 990586133S, 2000 WL 872464, at *18 (Conn. Super. Ct. June 13) (suggesting that mentioning a felony coupled with “the omission to mention the reversal of the conviction” could be libelous); see also Garcia v. Puccio, No. 108964/02, 2003 WL 25594218 (N.Y. Sup. Jan. 6) (reporting on complaint against plaintiff filed with the school but without mentioning “that the accusation was ultimately found to be baseless and expunged from plaintiffs teaching record” may be libelous under a “defamation by implication” theory, as not being the “substantial truth”); Reilly v. Gillen, 423 A.2d 311, 313–14 (N.J. Super. Ct. App. Div. 1980) (likewise); Entravision Commc’ns Corp. v. Belalcazar, 99 S.W.3d 393, 398 (Tex. App. 2003) (reporting on lawsuit against plaintiff but without mentioning that plaintiff had been dropped from that lawsuit may be libelous); Express Pub. Co. v. Gonzalez, 350 S.W.2d 589 (Tex. Civ. App. 1961) (same). But see Hoyt v. Klar, No. 2020-235, 2021 WL 841059 (Vt. Mar. 5) (holding that defendant’s mentioning plaintiff’s criminal charges but “fail[ing] to mention” that they “were later dismissed” didn’t constitute false light invasion of privacy, and presumably also didn’t constitute defamation).

[10] G.D. v. Kenny, 15 A.3d 300, 308 (N.J. 2011).

[11] Klentzman v. Brady, 456 S.W.3d 239, 268 (Tex. App. 2014), aff’d on other grounds, 515 S.W.3d 878 (Tex. 2017).

[12] E.g., Petro-Lubricant Testing Labs., Inc. v. Adelman, 184 A.3d 457, 471 (N.J. 2018); see also Restatement (Second) of Torts § 611.

[13] Fortenbaugh v. New Jersey Press, Inc., 722 A.2d 568, 573–74 (N.J. Super. Ct. App. Div. 1999); Mitan v. Osborn, No. 10-3207-CV-S-SWH, 2011 WL 4352550, *7 (W.D. Mo. Sept. 16, 2011) (“the fair report privilege” cannot “be met by pulling statements out of a brief filed in an official proceeding without reporting … the ultimate outcome of the proceeding”); Torres v. Playboy Enters., 7 Media L. Rep. (BNA) 1182, 1185 (S.D. Tex. Oct. 22, 1980); see also Lee v. TMZ Prods. Inc, 710 F. App’x 551, 558 (3d Cir. 2017) (noting that the fair report privilege applied because “Lee’s ultimate exoneration is not determinative. At the time the articles in question were published, the NYAG’s allegations against Lee were actively pending.”); O’Keefe v. WDC Media, LLC, No. CIV.A. 13-6530 CCC, 2015 WL 1472410, *5 (D.N.J. Mar. 30, 2015) (“Courts … have held that reports were not entitled to the protection of the fair-report privilege where the articles in question omitted ultimate exculpatory facts in ways that were misleading.”). But see Jenzabar, Inc. v. Long Bow Group, Inc., No. 2007-2075H, 2008 WL 7163549, *4 n.5 (Mass. Super. Ct. Aug. 5, 2008) (concluding that there’s no duty to “publish [a] follow-up” to an initial story when charges are retracted).

[14] Salzano v. N. Jersey Media Grp. Inc., 993 A.2d 778 (N.J. 2010).

[15] Petro-Lubricant Testing Labs, 184 A.3d at 472.

[16] Restatement (Second) of Torts § 578 cmt. b (Am. L. Inst. 1977).

[17] Restatement (Second) of Torts § 611 cmt. f. (Am. L. Inst. 1977).

[18] LaMon, 722 P.2d at 1377.

[19] Martin v. Hearst Corp., 777 F.3d 546, 553 (2d Cir. 2015); G.D. v. Kenny, 15 A.3d 300, 314–15 (N.J. 2011); Bahr v. Statesman Journal Co., 624 P.2d 664, 666 (Or. Ct. App. 1981). Likewise, in a case where a newspaper article mentioned an alleged police brutality incident, but didn’t mention criminal prosecution or acquittal, the court held that the article wasn’t “defamatory by the omission of the fact that the officers were later acquitted of criminal charges” because including that information “would not have placed the officers in any better light in the public mind.” Casper v. Wash. Post Co., 549 F. Supp. 376, 378 (E.D. Pa. 1982).

[20] Petro-Lubricant Labs., Inc. v. Adelman, 184 A.3d 457, 472 (N.J. 2018).

[21] Id.

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Our Economy Is Starting To Break Down On A Very Basic Level

Our Economy Is Starting To Break Down On A Very Basic Level

Authored by Michael Snyder via TheMostImportantNews.com,

Do you remember how much optimism there was in January? 

Many Americans were entirely convinced that really bright days were just around the corner, but instead things have taken a dramatic turn into the dumpster over the last 9 months. 

The Afghanistan debacle was the worst foreign policy embarrassment in modern American history, the Biden administration is trying to deal with an unprecedented crisis on our southern border, and the way that our politicians are handling the pandemic is causing extremely deep divisions throughout our society.  In addition, our economy is starting to break down on a very basic level.  On a widespread basis, goods are not getting to the places they need to be when they need to be there, and services are often not available when people need them.  As time has passed, the “malfunctioning” of our economy has spread, and now the coming mandates threaten to make things a whole lot worse.

Just look at the chaos that was caused in Florida on Sunday

Southwest has canceled 1,018 Sunday flights as of 2 p.m. ET, according to flight tracker FlightAware. That’s 28% of the the airline’s scheduled flights and the highest of any U.S. airline by a wide margin.

American Airlines has canceled 63 flights, or 2% of its operation, while Spirit Airlines canceled 32 flights, or 4% of its flights, according to FlightAware.

Overall, more than 1,800 flights were canceled during the weekend, and Southwest is publicly blaming the problems on “weather challenges”

“We experienced weather challenges in our Florida airports at the beginning of the weekend, challenges that were compounded by unexpected air traffic control issues in the same region, triggering delays and prompting significant cancellations for us beginning Friday evening,” the spokesperson told FOX Business.

“We’ve continued diligent work throughout the weekend to reset our operation with a focus on getting aircraft and crews repositioned to take care of our customers,” the spokesperson added. “With fewer frequencies between cities in our current schedule, recovering during operational challenges is more difficult and prolonged. We’re working diligently to accommodate our customers as quickly as possible, and we are grateful for their patience.”

Of course that is complete and utter nonsense.

A large number of Southwest pilots in Florida engaged in a “sickout” over the weekend to protest Southwest’s vaccine mandate, and apparently at least some air traffic controllers joined them…

On the record, they’re denying any sort of protest — but there are reports, citing airline sources, that a massive “sickout” went down, and that ripple effects are still being felt.

Regardless of what the truth here is … it’s screwing a lot of people, and causing a lot of problems. And, IF there is merit to the sickout speculation — it could also be a bad sign of what’s to come in other industries that might try to enforce vaccines on employees.

As I write this article, there are rumblings that pilots at American Airlines are organizing similar efforts.

Good for them.

In fact, we need bold people in every industry in America to start doing this sort of thing.

Perhaps if enough people start standing up, those that are trying to impose these mandates will start backing down.

Right now, we are already facing the most epic labor shortage in U.S. history, and economic activity is badly gummed up as a result.  If millions more qualified people are thrown out of work in the months ahead due to these absurd mandates, that is going to cause unprecedented chaos all across America.  A weekend of canceled flights might be bad, but it is nothing compared to the complete and utter nightmare our society will be facing if all of these mandates go through.

Even the military will be deeply affected.  On Sunday, it was being reported that “hundreds of thousands” of our service members have chosen to resist the mandates…

Hundreds of thousands of U.S. service members remain unvaccinated or only partially vaccinated against the coronavirus as the Pentagon’s first compliance deadlines near, with lopsided rates across the individual services and a spike in deaths among military reservists illustrating how political division over the shots has seeped into a nonpartisan force with unambiguous orders.

So what would it do to the state of our military if hundreds of thousands of service members are kicked out in the months ahead?

That is a question that we need to be asking, because it appears that this is actually what is going to happen.

On top of everything else, now we are facing a severe global energy crisis

Energy is so hard to come by right now that some provinces in China are rationing electricity, Europeans are paying sky-high prices for liquefied natural gas, power plants in India are on the verge of running out of coal, and the average price of a gallon of regular gasoline in the United States stood at $3.25 on Friday — up from $1.72 in April.

Most Americans may not realize it yet, but this is a really big deal.

There are more than 1.3 billion people living in India, and coal is in such short supply there that officials are warning that there could soon be widespread blackouts

Just like Chinese authorities ordering energy firms to conserve supplies at all costs, numerous power plants across India could be forced to adopt rolling blackouts as coal supplies run low. A minister in Indian capital New Delhi warned Sunday that blackouts could rock the massive city over the next two days. But the nation’s capital city isn’t alone in suffering energy shortages: it joins two Indian states – Tamil Nadu and Odisha – which have issued warnings about the growing possibility of blackouts due to dwindling coal supplies.

Other nations are facing similar issues.  In fact, Lebanon just emerged from a blackout that lasted about 24 hours

LEBANON has finally got the lights back on some 24 hours after the country was plunged into total darkness by fuel shortages.

The Mediterranean country is battling one of the planet’s worst economic crunches since the 1850s in the wake of last year’s devastating blast that levelled a huge part of the capital Beirut.

If things are this bad already, how crazy will things get in the middle of winter when demand for energy is at the highest?

People need to wake up, because the times that we are moving into are going to be completely different from what we have grown accustomed to.

It isn’t just the U.S. economy that is crumbling.  Literally, the economic infrastructure of the entire globe is falling to pieces, and experts are warning that things will continue to break down in the months ahead.

So many of the things that you have been warned about are starting to transpire right in front of our eyes, and this winter looks like it will be very dark indeed.

*  *  *

It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.

Tyler Durden
Mon, 10/11/2021 – 16:20

via ZeroHedge News https://ift.tt/3v1GzLm Tyler Durden

Radically Incomplete Reports of Legal Proceedings as Libels

Introduction

Say that I accurately write that you have been convicted of a crime, but I knowingly fail to mention that the conviction has been reversed.[1] To make the matter particularly stark, say the conviction has been reversed on grounds that show you were innocent (rather than just for procedural reasons). Or say that I accurately write that you were charged with a crime, but knowingly fail to mention that you were acquitted.

Is that libelous? This question arose in the course of my writing a separate article in this issue, which deals with whether a later reversal triggers an obligation to remove or modify the account of the original conviction.[2] But the question is important even apart from that separate question, so the editors kindly allowed me to answer it in this separate short article.

[I.] Libel by Omission

It turns out that the cases dealing with this question overwhelmingly answer it “yes.” The law recognizes that even something that is literally true may be so incomplete and therefore misleading in its “gist”—its overall tenor—that it might be actionable libel. “[T]he law of libel has long recognized that omissions alone can render a statement false.”[3] “[M]aterial omission of facts that would render the challenged statement(s) non-defamatory” can yield “implied defamation”—”a defendant does not avoid liability by simply establishing the truth of the individual statement(s); rather, the defendant must also defend … the omission of certain facts.”[4]

The classic example is Memphis Pub. Co. v. Nichols, where the Memphis Press-Scimitar wrote,

A 40-year-old woman was held by police in connection with the shooting [of Mrs. Ruth Nichols] with a .22 rifle. Police said a shot was also fired at the suspect’s husband.

Officers said the incident took place Thursday night after the suspect arrived at the Nichols home and found her husband there with Mrs. Nichols.[5]

What do you, as a reasonable reader, think happened? Well, here’s what really happened, but the story neglected to mention: “The undisputed proof showed that not only were Mrs. Nichols and [the shooter’s husband] at the Nichols’ home but so, also, were Mr. Nichols and two neighbors, all of whom were sitting in the living room, talking, when [the shooter] arrived.”[6]

The article was therefore a half-truth, with “the clear implication … that Mrs. Nichols and [the shooter’s husband] had an adulterous relationship”[7]—an implication that would have been absent had the omitted details been included. And this made the story potentially actionable as libel. Such a theory is sometimes called libel by omission, which is a special case of libel by implication or by innuendo.[8]

[II.] Libel by Omission of Critical Legal Context

Such libel-by-omission claims generally prevail only in cases where the omission is particularly stark and critical to the story. But omitting a reversal when talking about a conviction would generally qualify. “It is a misleading half-truth to say that a person was convicted … without including the fact that his conviction was overturned on appeal.”[9]

Likewise, liability may thus be imposed when “a defendant widely publicizes that a plaintiff was charged with a criminal offense but knowingly [does] not mention that the charge was found to be baseless.”[10] “The failure to report that [plaintiff] was acquitted, leaving the impression that he was guilty of the [charge mentioned in the article] was clearly more damaging to his reputation in the mind of the average reader than the truth would have been,” which is enough to make the partial account libelous.[11]

[III.] Not a “Full and Fair” Report

Another way of reaching the same result is through the “full and fair” element of the fair report privilege. Usually, fair reports about court proceedings and court documents are immune from defamation liability, regardless of whether there may have been some false statements within those proceedings or documents. The privilege exists because people need to be free to discuss formal allegations made in official court proceedings being considered by governmental actors.

But the reports have to be “full, fair, and accurate reports”[12] and “[a] report may not be ‘fair’ if it fails to reveal the ultimate outcome of the reported accusation.”[13] “[A]ccurately reporting a … charge … but failing, in the same article, to report the subsequent dismissal of the charge is not covered by the fair-report privilege.”[14] “The fair report privilege may not protect a publication that only reprints the allegations but not the favorable verdict.”[15]

In a sense, this is a version of the libel by omission theory:

  1. Under the libel law republication rule, repeating false and reputation-injuring allegations is generally itself libelous, even if the repetition accurately summarizes the allegations: saying “A said that P stole money from petty cash” is libelous if P didn’t steal the money, even if it’s accurate that A said that P stole the money.[16]
  2. The fair report privilege is a limit on this republication rule. Saying “The indictment said that P stole money from petty cash” or “The civil complaint said that P stole money from petty cash” isn’t libelous, even if P didn’t steal the money, so long as the summary of the legal documents is full, fair, and accurate.[17]
  3. But saying “The indictment said that P stole money from petty cash,” but omitting P‘s acquittal, is no longer a “full and fair” report, precisely because it omits an important fact.

In such a situation, “[t]he falsity … lies not in what was said but in what was left unsaid…. For example, a person who is arrested erroneously, based on mistaken identity, thereafter should not be subject to media reports citing his arrest while ignoring his subsequent vindication.”[18]

[IV.] No Liability for Not Reporting Settlements or Expungements

To be sure, sometimes omitting the follow-up information doesn’t sharply change the gist of the original information: an expungement or settlement, for instance, doesn’t demonstrate innocence of the original charge. In that situation, omitting that information isn’t libelous. Thus, for instance, it isn’t libelous to mention an arrest without mentioning that it was expunged or that charges were dismissed for non-innocence-related reasons.[19]

It similarly isn’t libelous to mention that a lawsuit was filed without mentioning that it was settled.[20] “A settlement … is different from a favorable verdict. A settlement generally ‘reflects ambiguously on the merits of the action’ and is not a determination of whether the allegations are true or false.[21]

But mentioning a prosecution yet omitting the acquittal may well be libelous, precisely because it does change the gist of the overall story. Likewise with mentioning a conviction yet omitting the reversal. Reporting on lawsuits and criminal prosecutions is broadly protected against libel liability—but not when the outcome of those proceedings is omitted, and the reader is left hearing only about an indictment or conviction and not the acquittal or reversal.

[1] For purposes of this article, it’s enough to assume that I knowingly fail to mention this; but in principle I could be liable if I merely negligently fail to mention it, if you’re a private figure and you can show that you have suffered damages as a result of my negligent falsehood.

[2] See Eugene Volokh, The Duty Not to Continue Distributing Your Own Libels, __ Notre Dame L. Rev. __ (2022).

[3] Morse v. Fusto, 804 F.3d 538, 549 n.8 (2d Cir. 2015).

[4] Toney v. WCCO Television, Midwest Cable & Satellite, Inc., 85 F.3d 383, 387 (8th Cir. 1996).

[5] 569 S.W.2d 412, 414 (Tenn. 1978).

[6] Id.

[7] Id. at 421.

[8] See, e.g., Strada v. Connecticut Newspapers, Inc., 477 A.2d 1005, 1012 (Conn. 1984).

[9] Wiest v. E-Fense, Inc., 356 F. Supp. 2d 604, 610 (E.D. Va. 2005); see also, e.g., Martin-Trigona v. Kupcinet, No. 87 C 3347, 1988 WL 93945, *5 (N.D. Ill. Sept. 2); Purcell v. Westinghouse Broad Co., 191 A.2d 662 (1963); LaMon v. Butler, 722 P.2d 1373 (Wash. Ct. App. 1986), aff’d on other grounds, 770 P.2d 1027 (Wash. 1989); Karuza v. Chance, 81 Wash. App. 1014, 1014 (1996) (characterizing LaMon as concluding that “[a] true statement can also be defamatory if it has been legally voided”); Martin v. Griffin, No. CV 990586133S, 2000 WL 872464, at *18 (Conn. Super. Ct. June 13) (suggesting that mentioning a felony coupled with “the omission to mention the reversal of the conviction” could be libelous); see also Garcia v. Puccio, No. 108964/02, 2003 WL 25594218 (N.Y. Sup. Jan. 6) (reporting on complaint against plaintiff filed with the school but without mentioning “that the accusation was ultimately found to be baseless and expunged from plaintiffs teaching record” may be libelous under a “defamation by implication” theory, as not being the “substantial truth”); Reilly v. Gillen, 423 A.2d 311, 313–14 (N.J. Super. Ct. App. Div. 1980) (likewise); Entravision Commc’ns Corp. v. Belalcazar, 99 S.W.3d 393, 398 (Tex. App. 2003) (reporting on lawsuit against plaintiff but without mentioning that plaintiff had been dropped from that lawsuit may be libelous); Express Pub. Co. v. Gonzalez, 350 S.W.2d 589 (Tex. Civ. App. 1961) (same). But see Hoyt v. Klar, No. 2020-235, 2021 WL 841059 (Vt. Mar. 5) (holding that defendant’s mentioning plaintiff’s criminal charges but “fail[ing] to mention” that they “were later dismissed” didn’t constitute false light invasion of privacy, and presumably also didn’t constitute defamation).

[10] G.D. v. Kenny, 15 A.3d 300, 308 (N.J. 2011).

[11] Klentzman v. Brady, 456 S.W.3d 239, 268 (Tex. App. 2014), aff’d on other grounds, 515 S.W.3d 878 (Tex. 2017).

[12] E.g., Petro-Lubricant Testing Labs., Inc. v. Adelman, 184 A.3d 457, 471 (N.J. 2018); see also Restatement (Second) of Torts § 611.

[13] Fortenbaugh v. New Jersey Press, Inc., 722 A.2d 568, 573–74 (N.J. Super. Ct. App. Div. 1999); Mitan v. Osborn, No. 10-3207-CV-S-SWH, 2011 WL 4352550, *7 (W.D. Mo. Sept. 16, 2011) (“the fair report privilege” cannot “be met by pulling statements out of a brief filed in an official proceeding without reporting … the ultimate outcome of the proceeding”); Torres v. Playboy Enters., 7 Media L. Rep. (BNA) 1182, 1185 (S.D. Tex. Oct. 22, 1980); see also Lee v. TMZ Prods. Inc, 710 F. App’x 551, 558 (3d Cir. 2017) (noting that the fair report privilege applied because “Lee’s ultimate exoneration is not determinative. At the time the articles in question were published, the NYAG’s allegations against Lee were actively pending.”); O’Keefe v. WDC Media, LLC, No. CIV.A. 13-6530 CCC, 2015 WL 1472410, *5 (D.N.J. Mar. 30, 2015) (“Courts … have held that reports were not entitled to the protection of the fair-report privilege where the articles in question omitted ultimate exculpatory facts in ways that were misleading.”). But see Jenzabar, Inc. v. Long Bow Group, Inc., No. 2007-2075H, 2008 WL 7163549, *4 n.5 (Mass. Super. Ct. Aug. 5, 2008) (concluding that there’s no duty to “publish [a] follow-up” to an initial story when charges are retracted).

[14] Salzano v. N. Jersey Media Grp. Inc., 993 A.2d 778 (N.J. 2010).

[15] Petro-Lubricant Testing Labs, 184 A.3d at 472.

[16] Restatement (Second) of Torts § 578 cmt. b (Am. L. Inst. 1977).

[17] Restatement (Second) of Torts § 611 cmt. f. (Am. L. Inst. 1977).

[18] LaMon, 722 P.2d at 1377.

[19] Martin v. Hearst Corp., 777 F.3d 546, 553 (2d Cir. 2015); G.D. v. Kenny, 15 A.3d 300, 314–15 (N.J. 2011); Bahr v. Statesman Journal Co., 624 P.2d 664, 666 (Or. Ct. App. 1981). Likewise, in a case where a newspaper article mentioned an alleged police brutality incident, but didn’t mention criminal prosecution or acquittal, the court held that the article wasn’t “defamatory by the omission of the fact that the officers were later acquitted of criminal charges” because including that information “would not have placed the officers in any better light in the public mind.” Casper v. Wash. Post Co., 549 F. Supp. 376, 378 (E.D. Pa. 1982).

[20] Petro-Lubricant Labs., Inc. v. Adelman, 184 A.3d 457, 472 (N.J. 2018).

[21] Id.

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Stocks Pump’n’Dump, Bitcoin Jumps With Bonds Away For Columbus Day

Stocks Pump’n’Dump, Bitcoin Jumps With Bonds Away For Columbus Day

To celebrate Indigenous People’s Day, the bond market took the day off so there was less human ‘discipline’ in general in the market.

Treasury futures (prices) ended the day marginally lower, implying perhaps a 1bps rise in 30Y Yields…

Source: Bloomberg

And so the machines were in charge and they tried their best early on to ignite momentum, but that all fell apart as Europe closed.. The Dow was the laggard on the day with Small Caps the last to give up its gains but still outperforming the others…

In fact, as we detailed earlier, 4400 was the line in the sand for the S&P…

The dollar rallied on the day but remained in a relatively tight range…

Source: Bloomberg

And bitcoin had a strong day, pushing up towards $58,000…

Source: Bloomberg

Ethereum had a different day but ended higher in the end…

Source: Bloomberg

Oil prices ended higher on the day despite a small pullback after The White House urged OPEC to ramp up production again…

Finally, we note that the correlation among S&P 500 components has been rising notably recently…

Source: Bloomberg

The fact that individual stocks have started moving around in unison has portended trouble in the past. Rising correlations are “a sign of market fragility — you could see a market pullback if there’s a change in outlook,” Steve Kolano, chief investment officer at BNY Mellon Investor Solutions told Bloomberg.

Tyler Durden
Mon, 10/11/2021 – 16:00

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Beijing Cracks Down On Banks, Regulators In Latest Anti-Corruption Drive

Beijing Cracks Down On Banks, Regulators In Latest Anti-Corruption Drive

For everybody who speculated that Beijing’s fine against Meituan was a sign its crackdown on the private sector might be slowing, the reality is that President Xi Jinping and China’s top policy makers are merely moving on to their next priority now that Chinese tech giants have been reminded who’s in charge.

With China’s bond market in chaos thanks to the excesses of developers like Evergrande, Fantasia and others, the WSJ just reported that President Xi Jinping is launching an anti-corruption review of 25 Chinese financial institutions, including state controlled banks and private companies. Just like the “anti-monopoly” crackdown on Chinese tech behemoths like Alibaba, the crackdown on Chinese banks is intended to ensure complete CCP control over the “lifeblood” of the economy.

The investigation was announced in September with few details, but WSJ’s sources say it’s finally ramping up, as investigators try to determine whether state-controlled financial firms have become “too chummy” with the private sector.

Part of the crackdown will focus on compensation in the financial industry. Apparently, officials within China’s Ministry of Finance are concerned that compensation in China’s financial sector is “too high”.

Aside from the banks and firms themselves, China’s top anti-corruption agency, the Central Commission for Discipline Inspection, will also focus on whether regulators at the PBOC and other banking, insurance and securities watchdogs have been negligent in supervising companies. The suspicion is that they may have fallen under the spell of what is called “regulatory capture” in the US.

Over the coming weeks and months, employees from the commission will be fanning out to offices across the sector to review files, investigate lending activity and demand answers for how certain deals came to be. Zhao Leji, the head of the CCDI, said his investigators will “thoroughly search for any political deviations,” according to Xinhua.

WSJ added that it’s “notable” the crackdown is starting in the middle of the Evergrande crisis, which, as we have reported, is spreading to other developers. Chinese banks have already apparently gotten the memo, and banks have already started curtailing lending to private developers.

President Xi and others are concerned that aggressively lending to well-connected firms like Evergrande might be due to their close ties with state banks. Already, Chinese financial conglomerates that lent to Evergrande, including Citic Group, founded in the 1970s by Rong Yiren, an infamous “red capitalist”. State banks’ lending to Evergrande will also be examined.

One academic and China expert said Xi’s crackdown will hurt economic growth as banks sever business ties with private companies. “When uncertainty goes up, the only way to react is to stop doing what you’re doing,” said Michael Pettis, a finance professor at Peking University, to WSJ. “But a slowdown of economic activity in the private sector—from tech giants unsure of the regulatory climate to private developers whose lending spigot is cut off—presents a dilemma for Beijing. “Without ‘bad’ lending, you’re not going to achieve the growth target.”

And Evergrande isn’t the first Chinese firm to overextend itself. A few years ago, Beijing forced major private conglomerates like HNA Group to sell off pieces of their offshore portfolio following a global buying frenzy by a handful of major Chinese firms. HNA’s former chief executive is now in jail, and the company – once one of China’s high-flyers – has declared bankruptcy.

Despite Beijng’s warnings about real-estate lending, Citic has pumped more than $10 billion into Evergrande, per WSJ’s sources.

One of the managers responsible for lending to Evergrande, Xie Hongru, who ran Citic’s office in Guangzhou, close to EG’s home base in Shenzen, has been under investigation by the Party’s disciplinary investigators since last month, WSJ says.

But even more surprising than Citic (a private firm) is the fact that China’s sovereign-wealth fund, China Investment Corp, and several of China’s “Big Four” banks will face investigations over whether their ties to Didi helped the ride-share company’s application to IPO in New York sail through China’s regulatory framework. As officials at CIC brace for the Party investigators, a source inside the company told WSJ: “People are nervous.”

When it comes to the state-controlled entities, the big question will be: “Do those investments represent the state’s interests or those of a few individuals?”

To try and goose economic activity, the government could ramp up infrastructure investment and other elements of its old stimulus playbook.

Ultimately, Xi appears to have two goals: rein in the excessive lending that has created crises like the Evergrande debacle. And – most importantly – to make sure every financial firm private or otherwise remains completely loyal to the CCP.

Of course, when it comes to rooting out official corruption and inappropriate relationships between the state and financial firms, it looks like there’s plenty Chinese regulators can teach their American counterparts.

Tyler Durden
Mon, 10/11/2021 – 15:48

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Will Risk Parity Blow Up?

Will Risk Parity Blow Up?

Submitted by Adventures in Capitalism

For four decades, the US stock market has traded up and to the right. During those brief moments of setback, treasuries rallied strongly. The fact that these two asset classes seemed to offset each other, creating a smoothed-out return profile, was not lost on certain fund managers who created portfolios comprised of the two. Then, to better market this portfolio to the sorts of institutional investors who cannot bear drawdowns, the overriding strategy was given the pseudo-intellectual sounding Risk Parity moniker. Over time, the reliability of Risk Parity funds has astonished most observers, especially after being tested by fire during the GFC. As a result, portfolio managers took the logical next step and added copious leverage—because in finance, when you do a back-test, every return stream works better with leverage. Naturally, as Risk Parity continued to produce returns, inflows bloated these funds. Risk Parity strategies, in one form or another, now dominate many institutional asset allocations. While everyone makes their sausage a bit differently, trillions in notional value are now managed using this strategy—long equities, long treasuries. Are they highly-leveraged time-bombs??

Taking a step back, it’s important to ask, what created this smooth stream of Risk Parity returns? Was it investor brilliance or was it a four-decade period of declining interest rates that systematically increased equity market multiples while reducing bond yields? What if all the sausage-making was just noise? This then brings out the next logical question; what happens if the rate cycle has now turned and we have an extended period of both increasing interest rates and declining equity market multiples?

During the darkest Covid days of March 2020, I distinctly remember a few days where the equity market crashed along with treasuries. It was so highly unusual, that it was memorable. I kept saying to myself, “well, this is odd…” Later on, we learned that during the global margin call caused by Covid, multiple Risk Parity funds were forced to de-lever and sell both legs of their trade (dumping both equities and bonds). For the first time that I can remember, bonds did not act as the anticipated hedge to an equity market crack-up. They actually accelerated the crack-up as collateral values crashed.

When a strategy gets too crowded, particularly with excess leverage to augment returns, we often see that strategy act “funny” around stress-points. This is because when any large player gets into trouble, they de-gross, which starts a feedback loop, forcing someone else to get into trouble and also de-gross—it simply cascades. Fortunately for everyone, the Fed stepped in with unlimited liquidity. It turned out to be an excellent time to buy pretty much anything with a CUSIP. However, that week in March should have been a wakeup call for everyone in the Risk Parity world. Instead, I suspect they’ve made a few small tweaks and continued with their prior strategy.

For some time, I have been very clear that the disinflation cycle has been turning. Sure, I was a bit early, and the cycle overshot my wildest expectations. However, that’s how tops get made. Now, with each passing day, complete with new and bizarre forms of price inflation, it is increasingly obvious that the multi-decade disinflationary cycle has turned. We’re barely into the first innings and supply chains are breaking, while prices are soaring. Just wait until the Global Central Planners really get going with their “fixes” which will naturally accentuate the inflationary pressures. This will get nasty for many risk assets and their valuations will come in—at a time when treasuries also sell off due to inflationary pressures. I don’t think most Risk Parity portfolios are ready for what’s coming.

The Risk Parity sell-off of March 2020 was the warning that everyone should have paid attention to. Now, once again, bonds are getting wobbly while equities are also acting heavy. Some of the nastiest days over the past month were on days when both equities and treasuries sold off at the same time. Inflation expectations are starting to get priced into the markets—gradually, then suddenly.

What if the Fed is not there to backstop the Risk Parity funds? What if the Fed is forced to tackle a failed energy policy that was mangled by ESG? A 60/40 portfolio can suffer through bad periods if it isn’t levered. Put some leverage on that and watch out. Ever since March 2020, I’ve been convinced that these Risk Parity funds will blow up spectacularly with any rise in inflation expectations, as both legs of the trade get shredded. It’s getting closer to game-time on that theory. I’m not saying that this is a tomorrow sort of thing, maybe it takes a few quarters, but I think we’re well into the death-rattle stage for Risk Parity strategies. When something that is this widely adopted blows up, it tends to blow up spectacularly. I suspect this will get wild.

Tyler Durden
Mon, 10/11/2021 – 15:25

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Even If Requiring People Who Have Recovered From COVID-19 To Be Vaccinated Is Legal, That Doesn’t Mean It Makes Sense


VaccineBottlesDreamstime

A federal judge on Friday rejected a Michigan State University (MSU) employee’s motion for a preliminary injunction against the school’s requirement that staff members be vaccinated against COVID-19. Jeanna Norris, an administrator at the school, argued that her “naturally acquired immunity” made the mandate “unlawful” as applied to her and other staffers who have recovered from the disease. U.S. District Judge Paul Maloney concluded that, notwithstanding the scientific evidence that Norris cited to support her position, the public university’s policy easily satisfied the “rational basis” test.

That standard of review is highly deferential, so it is not surprising that Norris, who is represented by the New Civil Liberties Coalition, did not get the injunction she wanted. Maloney notes that the Supreme Court applied what was essentially a rational basis test (although that term had not been invented yet) in the 1905 case Jacobson v. Massachusetts, which involved a state-authorized requirement that Cambridge residents be inoculated against smallpox or pay a $5 fine (equivalent to about $155 today).

Maloney rejected Norris’ argument that the vaccination requirement violates her fundamental rights to privacy and bodily integrity, which would have triggered strict scrutiny under the 14th Amendment, a much more demanding standard of review. “Plaintiff is absolutely correct that she possesses those rights, but there is no fundamental right to decline a vaccination,” he writes. “She also does not have a constitutionally protected interest in her job at MSU, which Plaintiff’s counsel conceded. The MSU vaccine policy does not force Plaintiff to forgo her rights to privacy and bodily autonomy, but if she chooses not to be vaccinated, she does not have the right to work at MSU at the same time.”

That analysis suggests why similar legal challenges by people with naturally acquired COVID-19 immunity are unlikely to succeed in court. But it does not settle the question of whether mandates like MSU’s, even if “rational” in the legal sense, are fair or reasonable in light of the scientific evidence.

Norris “has already contracted and fully recovered from COVID-19,” her complaint says. “As a result, she has naturally acquired immunity, confirmed unequivocally by two recent SARS-CoV-2 antibody tests. Her immunologist, Dr. Hooman Noorchashm, has advised her that it is medically unnecessary to undergo a vaccination procedure at this point.”

Maloney heard from dueling scientific experts on the question of how much protection prior infection confers. “There is ongoing scientific debate about the effectiveness of naturally acquired immunity versus vaccine immunity,” he writes. But he adds that “even if there is vigorous ongoing discussion about the effectiveness of natural immunity, it is rational for MSU to rely on present federal and state guidance in creating its vaccine mandate.”

That legal conclusion is distinct from the policy question of whether it makes sense as a workplace safety measure to issue a vaccine mandate with no exception for people like Norris—an issue that could be important in evaluating the legality of the Biden administration’s pending regulation demanding that companies with 100 or more employees require them to be inoculated or undergo regular coronavirus testing. That rule, which the White House announced a month ago, still has not been published. But it is not expected to include an exception for employees who have recovered from COVID-19.

The administration is relying on the authority that Congress gave the Occupational Safety and Health Administration (OSHA) to issue an “emergency temporary standard” when it is “necessary” to protect employees from “grave danger.” The issue of whether unvaccinated people with natural immunity pose such a danger is therefore legally relevant. It is also relevant for employers who are deciding the details of their own policies.

A widely cited Israeli preprint study posted in August suggested that natural immunity is more effective than vaccination at preventing infection by the delta variant. The researchers studied the records of patients enrolled in Maccabi Healthcare Services, which covers 2.5 million Israelis, a quarter of the population. Compared to unvaccinated patients who had recovered from COVID-19 in January or February 2021, they found, vaccinated patients with no history of infection were 13 times as likely to be infected between June 1 and August 14, 2021, “when the Delta variant was dominant in Israel.”

When the researchers included patients who had been infected at any point from March 2020 to February 2021, the difference in risk was smaller, suggesting that the protection from natural immunity wanes over time. But the “SARS-CoV-2-naïve vaccinees” were still six times as likely to be infected. “This study demonstrated that natural immunity confers longer lasting and stronger protection against infection, symptomatic disease and hospitalization caused by the Delta variant of SARS-CoV-2, compared to the BNT162b2 two-dose vaccine-induced immunity,” the authors concluded.

Critics have pushed back against that conclusion, citing potential problems with the study’s retrospective design. James Lawler, an infectious disease specialist at the University of Nebraska College of Medicine, has noted that the vaccinated patients were more likely than the unvaccinated patients to be elderly and to have preexisting health conditions that made them especially vulnerable to COVID-19. The researchers tried to take that selection bias into account, but Lawler argued in an August 31 briefing that their adjustments may not have been adequate. He added that unvaccinated patients who died from COVID-19 were not included in the study, which also might have skewed the results.

One point on which the Israeli researchers and U.S. public health officials agree is that vaccination is beneficial even for people with natural immunity. The authors of the Israeli study noted that “individuals who were both previously infected with SARS-CoV-2 and given a single dose of the vaccine gained additional protection against the Delta variant.” A study that the Centers for Disease Control and Prevention published in August looked at Kentucky residents who had recovered from COVID-19, some of whom were subsequently vaccinated. The researchers found that unvaccinated people were more than twice as likely to be reinfected as fully vaccinated people.

But when it comes to vaccine mandates, the relevant question is whether an unvaccinated person with natural immunity is substantially more likely to catch and transmit the coronavirus than a vaccinated person without natural immunity. On that point, medical experts disagree.

Peter McCullough, a Dallas internist and cardiologist with a public health degree who testified in support of psychiatrist Aaron Kheriaty’s unsuccessful challenge to the University of California’s vaccine mandate, argued that the coronavirus “causes an infection in humans that results in robust, complete, and durable immunity”—a protective effect that is “superior to vaccination-induced immunity.” McCullough emphasized that antibody tests reflect only part of the immune response to a COVID-19 infection, which includes “antibodies to the nucleocapsid and to the spike protein, as well as T-helper cells, natural killer cells, B-cells, and innate immunity.”

By contrast, the Berkeley epidemiologist Arthur Reingold argued in the same case that the university’s blanket vaccine requirement was justified because the strength and longevity of natural immunity are unclear. “While individuals who have had a documented case of COVID-19 typically have antibodies to the SARS-CoV-2 virus detectable in their blood and are believed to have a reduced risk of getting COVID-19 again in the months that follow,” he said, “neither the completeness nor the durability of protection against a second case of COVID-19 has been established. The extent to which any such immunity resulting from having had COVID-19 provides protection against new variants of SARS-CoV-2 is also unknown.”

The British Society for Immunology (BSI) offers a similar gloss. “It’s likely that for most people vaccination against COVID-19 will induce more effective and longer lasting immunity than that induced by natural infection with the virus,” it says. But the rest of its summary paints a more complicated picture.

The BSI says the immune response to a COVID-19 infection “varies hugely between people.” Yet it also says the immune response to COVID-19 vaccine “varies,” although “most” vaccinations “produce a strong immune response,” even in “older people.” The BSI thinks vaccination “may produce a more robust immune response.”

The “length of protection” from natural immunity is “variable” and “not fully known,” the BSI says. But “protection tends to be lower in people who were mildly ill,” and it “reduces over time.” The length of protection from vaccination likewise is “still to be learnt,” although two-dose vaccines have “produce[d] long-term protection so far.” Assuming that protection wanes (the issue at the center of the debate about who should receive boosters and when), “booster vaccines could maintain a strong immune response.”

What about protection against variants? In people who have recovered from COVID-19, the BSI says, “reinfection [is] possible but uncommon.” Since “response to natural infection is variable,” the immune system “may not be able to recognize a viral variant.” Two-dose vaccines “provide strong protection against many currently identified variants,” which is more likely when “high antibody levels [are] produced.”

In both cases, then, immune responses vary from one person to another, may fade over time, and provide some protection against variants. Overall, the advantages of vaccination compared to waiting for an infection are clear, especially since people who catch the virus can transmit it to others and may suffer severe symptoms. But that does not mean unvaccinated people who already have recovered from COVID-19 pose a significantly higher risk than vaccinated people with no prior infections.

A private employer might conclude that a blanket vaccine requirement is easier to administer than one that makes an exception for previously infected people. The latter approach presumably would require documentation of prior infections. It might also require evidence, similar to the tests cited by Norris, of a robust immune response—although vaccinated people don’t have to produce such evidence, even though their immune responses also vary.

As a matter of public policy, however, that added complication does not seem unreasonably burdensome. The OSHA order described by the Biden administration already includes an exception for employees who agree to be tested at least once a week, which is more expensive and harder to arrange than a one-time requirement that employees document their COVID-19 histories.

Jeffrey Klausner, a clinical professor of population and public health sciences at the University of Southern California, co-authored a systematic review in the journal Evaluation & the Health Professions last month that found “the protective effect of prior SARS-CoV-2 infection on re-infection is high and similar to the protective effect of vaccination,” although “more research is needed to characterize the duration of protection and the impact of different SARS-CoV-2 variants.” As a result, he told Kaiser Health News, “From the public health perspective, denying jobs and access and travel to people who have recovered from infection doesn’t make sense.”

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Even If Requiring People Who Have Recovered From COVID-19 To Be Vaccinated Is Legal, That Doesn’t Mean It Makes Sense


VaccineBottlesDreamstime

A federal judge on Friday rejected a Michigan State University (MSU) employee’s motion for a preliminary injunction against the school’s requirement that staff members be vaccinated against COVID-19. Jeanna Norris, an administrator at the school, argued that her “naturally acquired immunity” made the mandate “unlawful” as applied to her and other staffers who have recovered from the disease. U.S. District Judge Paul Maloney concluded that, notwithstanding the scientific evidence that Norris cited to support her position, the public university’s policy easily satisfied the “rational basis” test.

That standard of review is highly deferential, so it is not surprising that Norris, who is represented by the New Civil Liberties Coalition, did not get the injunction she wanted. Maloney notes that the Supreme Court applied what was essentially a rational basis test (although that term had not been invented yet) in the 1905 case Jacobson v. Massachusetts, which involved a state-authorized requirement that Cambridge residents be inoculated against smallpox or pay a $5 fine (equivalent to about $155 today).

Maloney rejected Norris’ argument that the vaccination requirement violates her fundamental rights to privacy and bodily integrity, which would have triggered strict scrutiny under the 14th Amendment, a much more demanding standard of review. “Plaintiff is absolutely correct that she possesses those rights, but there is no fundamental right to decline a vaccination,” he writes. “She also does not have a constitutionally protected interest in her job at MSU, which Plaintiff’s counsel conceded. The MSU vaccine policy does not force Plaintiff to forgo her rights to privacy and bodily autonomy, but if she chooses not to be vaccinated, she does not have the right to work at MSU at the same time.”

That analysis suggests why similar legal challenges by people with naturally acquired COVID-19 immunity are unlikely to succeed in court. But it does not settle the question of whether mandates like MSU’s, even if “rational” in the legal sense, are fair or reasonable in light of the scientific evidence.

Norris “has already contracted and fully recovered from COVID-19,” her complaint says. “As a result, she has naturally acquired immunity, confirmed unequivocally by two recent SARS-CoV-2 antibody tests. Her immunologist, Dr. Hooman Noorchashm, has advised her that it is medically unnecessary to undergo a vaccination procedure at this point.”

Maloney heard from dueling scientific experts on the question of how much protection prior infection confers. “There is ongoing scientific debate about the effectiveness of naturally acquired immunity versus vaccine immunity,” he writes. But he adds that “even if there is vigorous ongoing discussion about the effectiveness of natural immunity, it is rational for MSU to rely on present federal and state guidance in creating its vaccine mandate.”

That legal conclusion is distinct from the policy question of whether it makes sense as a workplace safety measure to issue a vaccine mandate with no exception for people like Norris—an issue that could be important in evaluating the legality of the Biden administration’s pending regulation demanding that companies with 100 or more employees require them to be inoculated or undergo regular coronavirus testing. That rule, which the White House announced a month ago, still has not been published. But it is not expected to include an exception for employees who have recovered from COVID-19.

The administration is relying on the authority that Congress gave the Occupational Safety and Health Administration (OSHA) to issue an “emergency temporary standard” when it is “necessary” to protect employees from “grave danger.” The issue of whether unvaccinated people with natural immunity pose such a danger is therefore legally relevant. It is also relevant for employers who are deciding the details of their own policies.

A widely cited Israeli preprint study posted in August suggested that natural immunity is more effective than vaccination at preventing infection by the delta variant. The researchers studied the records of patients enrolled in Maccabi Healthcare Services, which covers 2.5 million Israelis, a quarter of the population. Compared to unvaccinated patients who had recovered from COVID-19 in January or February 2021, they found, vaccinated patients with no history of infection were 13 times as likely to be infected between June 1 and August 14, 2021, “when the Delta variant was dominant in Israel.”

When the researchers included patients who had been infected at any point from March 2020 to February 2021, the difference in risk was smaller, suggesting that the protection from natural immunity wanes over time. But the “SARS-CoV-2-naïve vaccinees” were still six times as likely to be infected. “This study demonstrated that natural immunity confers longer lasting and stronger protection against infection, symptomatic disease and hospitalization caused by the Delta variant of SARS-CoV-2, compared to the BNT162b2 two-dose vaccine-induced immunity,” the authors concluded.

Critics have pushed back against that conclusion, citing potential problems with the study’s retrospective design. James Lawler, an infectious disease specialist at the University of Nebraska College of Medicine, has noted that the vaccinated patients were more likely than the unvaccinated patients to be elderly and to have preexisting health conditions that made them especially vulnerable to COVID-19. The researchers tried to take that selection bias into account, but Lawler argued in an August 31 briefing that their adjustments may not have been adequate. He added that unvaccinated patients who died from COVID-19 were not included in the study, which also might have skewed the results.

One point on which the Israeli researchers and U.S. public health officials agree is that vaccination is beneficial even for people with natural immunity. The authors of the Israeli study noted that “individuals who were both previously infected with SARS-CoV-2 and given a single dose of the vaccine gained additional protection against the Delta variant.” A study that the Centers for Disease Control and Prevention published in August looked at Kentucky residents who had recovered from COVID-19, some of whom were subsequently vaccinated. The researchers found that unvaccinated people were more than twice as likely to be reinfected as fully vaccinated people.

But when it comes to vaccine mandates, the relevant question is whether an unvaccinated person with natural immunity is substantially more likely to catch and transmit the coronavirus than a vaccinated person without natural immunity. On that point, medical experts disagree.

Peter McCullough, a Dallas internist and cardiologist with a public health degree who testified in support of psychiatrist Aaron Kheriaty’s unsuccessful challenge to the University of California’s vaccine mandate, argued that the coronavirus “causes an infection in humans that results in robust, complete, and durable immunity”—a protective effect that is “superior to vaccination-induced immunity.” McCullough emphasized that antibody tests reflect only part of the immune response to a COVID-19 infection, which includes “antibodies to the nucleocapsid and to the spike protein, as well as T-helper cells, natural killer cells, B-cells, and innate immunity.”

By contrast, the Berkeley epidemiologist Arthur Reingold argued in the same case that the university’s blanket vaccine requirement was justified because the strength and longevity of natural immunity are unclear. “While individuals who have had a documented case of COVID-19 typically have antibodies to the SARS-CoV-2 virus detectable in their blood and are believed to have a reduced risk of getting COVID-19 again in the months that follow,” he said, “neither the completeness nor the durability of protection against a second case of COVID-19 has been established. The extent to which any such immunity resulting from having had COVID-19 provides protection against new variants of SARS-CoV-2 is also unknown.”

The British Society for Immunology (BSI) offers a similar gloss. “It’s likely that for most people vaccination against COVID-19 will induce more effective and longer lasting immunity than that induced by natural infection with the virus,” it says. But the rest of its summary paints a more complicated picture.

The BSI says the immune response to a COVID-19 infection “varies hugely between people.” Yet it also says the immune response to COVID-19 vaccine “varies,” although “most” vaccinations “produce a strong immune response,” even in “older people.” The BSI thinks vaccination “may produce a more robust immune response.”

The “length of protection” from natural immunity is “variable” and “not fully known,” the BSI says. But “protection tends to be lower in people who were mildly ill,” and it “reduces over time.” The length of protection from vaccination likewise is “still to be learnt,” although two-dose vaccines have “produce[d] long-term protection so far.” Assuming that protection wanes (the issue at the center of the debate about who should receive boosters and when), “booster vaccines could maintain a strong immune response.”

What about protection against variants? In people who have recovered from COVID-19, the BSI says, “reinfection [is] possible but uncommon.” Since “response to natural infection is variable,” the immune system “may not be able to recognize a viral variant.” Two-dose vaccines “provide strong protection against many currently identified variants,” which is more likely when “high antibody levels [are] produced.”

In both cases, then, immune responses vary from one person to another, may fade over time, and provide some protection against variants. Overall, the advantages of vaccination compared to waiting for an infection are clear, especially since people who catch the virus can transmit it to others and may suffer severe symptoms. But that does not mean unvaccinated people who already have recovered from COVID-19 pose a significantly higher risk than vaccinated people with no prior infections.

A private employer might conclude that a blanket vaccine requirement is easier to administer than one that makes an exception for previously infected people. The latter approach presumably would require documentation of prior infections. It might also require evidence, similar to the tests cited by Norris, of a robust immune response—although vaccinated people don’t have to produce such evidence, even though their immune responses also vary.

As a matter of public policy, however, that added complication does not seem unreasonably burdensome. The OSHA order described by the Biden administration already includes an exception for employees who agree to be tested at least once a week, which is more expensive and harder to arrange than a one-time requirement that employees document their COVID-19 histories.

Jeffrey Klausner, a clinical professor of population and public health sciences at the University of Southern California, co-authored a systematic review in the journal Evaluation & the Health Professions last month that found “the protective effect of prior SARS-CoV-2 infection on re-infection is high and similar to the protective effect of vaccination,” although “more research is needed to characterize the duration of protection and the impact of different SARS-CoV-2 variants.” As a result, he told Kaiser Health News, “From the public health perspective, denying jobs and access and travel to people who have recovered from infection doesn’t make sense.”

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