Jo Jorgensen on Black Lives Matter: ‘I Think We Should Support the Protesters’

Jo Jorgensen

It’s Thursday in Nashville. Libertarian presidential nominee Jo Jorgensen has parked her blue campaign bus in Centennial Park for her “Real Change For Real People” tour. There are tables with masks and hand sanitizer. Supporters gather early, their excitement seemingly unaffected by the pandemic precautions. A few cars slow down to observe the gathering in the park. After a mic check, Jorgensen is introduced and begins to speak.

Almost immediately, her speech covers the two most pressing topics of the summer: criminal justice reform and the COVID-19 pandemic.

Back in June, Jorgensen attended a Black Lives Matter vigil for victims of police brutality. Her presence there received mixed reviews, with libertarians who distrust the official Black Lives Matter organization for some of its political and economic views facing off those who believe libertarians should be present in the Black Lives Matter movement protests. (The differences between Black Lives Matter the organization and the movement are explained here.) Regardless of the potential backlash, Jorgensen doubled down on her stance.

“We need change, and I’m glad [the protests] are getting the attention,” Jorgensen tells me on the bus after the speech.

Jorgensen says that the Libertarian Party agrees with the national Black Lives Matter organization on several issues, such as the drug war, no-knock raids, and qualified immunity.

“But their answer is more government,” she says, and “big government is what got us here to begin with.”

Jorgensen mentions a meeting she had with a Black Lives Matter activist in Tulsa, Oklahoma. (The activist was not affiliated with the official Black Lives Matter organization.) They discussed the government’s role in discrimination, with Jorgensen pointing out that the buses in the famous Montgomery Bus Boycott were publicly run and that segregation laws were enforced even though black residents made up the majority of the ridership. “Now imagine today, if Uber decided to discriminate against the majority of their customers. What if they treated their best customers that way? They would go out of business,” she argued. Jorgensen says the activist told her that the experience was “opening his eyes.”

“Libertarians have been talking about these issues for 40 years,” she says. “I think we should support the protesters, but, at the same time, get rid of the opportunistic people hijacking the movement.” Jorgensen points to the people who have used the protests to loot and commit violence: “They are going around basically inserting themselves into peaceful protest. And I’ve seen many clips of the protesters saying, ‘Stop it. Go away. You’re not helping us. We don’t want you here.'”

When the demonstrations first began in May, black organizers and protesters across the nation desperately attempted to keep the violence in check. In one video, D.C. protesters hand-deliver a young man to nearby police after seeing him destroy a sidewalk. In her firsthand account of the Nashville protests, author Nancy French tweeted a video of a black protester arguing with white protesters over property destruction. 

“We need to do what we can to keep the protests on target,” Jorgensen adds.

The conversation then shifts to the COVID-19 pandemic.

“We’re all adults, and it shouldn’t be against the law to be stupid,” Jorgensen says. 

Jorgensen notes that with personal freedom comes responsibility. While she doesn’t support mask mandates (“unless we’re talking about a government building”) or even a forced vaccine in the event that one is developed, Jorgensen sees private companies enacting mask policies as a sign that most Americans are taking the pandemic seriously.

“That just shows what libertarians have been saying for decades, which is just because the government doesn’t tell you to do it doesn’t mean it won’t get done,” she says. “We still have entities who are requiring us to wear masks. We don’t have to wait until the government tells us to. But this way, we have choice.”

Jorgensen adds that private companies wouldn’t enact mask policies if they thought doing so would harm their profits: “I don’t think they’d be requiring a mask if they thought that people would stop shopping in their store and they’d go out of business. So ultimately this is coming from the individual.”

What does Jorgensen think the executive branch should be doing in the pandemic? “I think the president has the obligation to lead the country and to get information out there to warn people,” she says. She is upset at President Donald Trump for saying, “If you don’t have [COVID-19] symptoms…don’t get the test.” Given the disease’s asymptomatic spread and long incubation period, she says, this was irresponsible advice.

Jorgensen also notes the variety of ways the Food and Drug Administration (FDA) and other federal agencies have restricted access to mass testing. Such testing, she notes, contributed greatly to South Korea’s flattening of the outbreak curve.

“We lost tens of millions of jobs,” she says. “If we had the testing out there, if we didn’t have the FDA obstacles, if we didn’t have so many other government obstacles, we could’ve had widespread testing. And then we could have known which people should have stayed home and which could go out.”

Our conversation concludes with a question about the current debate over voting by mail.

“It’s fine with me if we have mail-in votes,” she says. “As long as we do it through FedEx.”

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US Consumer Credit Rises For The First TIme Since The Covid Crisis

US Consumer Credit Rises For The First TIme Since The Covid Crisis

Tyler Durden

Fri, 08/07/2020 – 15:30

After three months of record declines, total US consumer credit posted its first increase in the month of June since the covid crisis, rising by a modest $8.9 billion, below the $10 billion expected, but the positive print since February nonetheless.

In total, June consumer credit rose 2.6% at an annual rate to $4.125 trillion up from $4.116 trillion in May, according to the latest G.19 statement.

Broken up into its components, revolving credit actually posted another modest drop, but nothing compared to the record credit card repayment seen in April when credit card balances shrank by nearly $60 billion.

Meanwhile, the trend higher in auto and student loans, i.e., non-revolving credit, continued apace rising by $11.3BN in June after a $10.3bn increase in May and a rare contraction in April.

Finally, when looking at the biggest component of US household debt after mortgages, namely auto loans and student loans, it’s as if nothing every happened, with both series hitting new all time highs.

With total credit now once again positive, and revolving credit likely having gone green in July, it appears that life in America – where virtually everyone spends well beyond their means – is back to normal. At least until the next forced state shutdowns a few weeks from now to ensure that the economy is in complete shambles by the time Nov 3 rolls by.

via ZeroHedge News https://ift.tt/3a4NFnS Tyler Durden

Portland Mayor Turns On Protesters, Accuses Them Of ‘Attempting To Commit Murder’

Portland Mayor Turns On Protesters, Accuses Them Of ‘Attempting To Commit Murder’

Tyler Durden

Fri, 08/07/2020 – 15:10

Three weeks ago, Portland Mayor Ted Wheeler was standing shoulder to shoulder with angry protesters, gagging on tear gas in a show of solidarity against federal agents sent there to restore order.

Now, the federal agents are gone as Wheeler’s city continues to spiral out of control.

On Thursday evening, Wheeler condemned rioters who tried to torch a police precinct after blocking the exits while officers were still inside, according to Fox News.

“When you commit arson with an accelerant in an attempt to burn down a building that is occupied by people who you have intentionally trapped inside, you are not demonstrating, you are attempting to commit murder,” said Wheeler in a joint press conference with Police Chief Chuck Lovell.

“Don’t think for a moment that you are if you are participating in this activity, you are not being a prop for the reelection campaign of Donald Trump — because you absolutely are,” he added. “You are creating the B-roll film that will be used in ads nationally to help Donald Trump during this campaign. If you don’t want to be part of that, then don’t show up.”

On Wednesday, a riot was declared after protesters swarmed the Portland Police Bureau’s East Precinct Building – breaking glass doors, lighting a fire using an accelerant, throwing fireworks and other objects at officers, and spray-painting over security cameras. According to the report, someone in a truck also tried to run over police officers.

The front doors of the precinct were barricaded before the fire was started with more than 20 officers and civilian employees inside, police said, according to FOX 12.

Officers used tear gas to disperse the rioters and at least eight people were arrested. A federal court order bars police from using tear gas unless a riot is declared.

I believe that city staff could have died last night,” Wheeler said. “I cannot and I will not tolerate that. This is not peaceful protests. This is not advocacy to advance reforms.” –Fox News

“If you are a nonviolent demonstrator and you don’t want to be part of intentional violence, please stay away from these areas,” said Wheeler. “Our community must say that this violence is not Portland, that these actions do not reflect our values and these crimes are distracting from reform, not advancing.”

Wheeler says he anticipates “additional planned attacks on public buildings” in the next few days – and has authorized police to do what is necessary to respond as long as peaceful protesters aren’t threatened.

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

Inequality Has Never Been Bigger: Financial Assets Hit A Record 620% Of GDP

Inequality Has Never Been Bigger: Financial Assets Hit A Record 620% Of GDP

Tyler Durden

Fri, 08/07/2020 – 14:55

It was about a year ago when we showed a snapshot of the outrages wealth imbalance in the US with the help of just one metric: as of Aug 2019, Wall Street (US private sector financial assets) was 5.5x the size of Main Street (US GDP), and as BofA’s Michael Hartnett pointed out, between 1950 & 2000 the norm was 2.5-3.5x. His conclusion, as recent events have sadly confirmed “Wall Street is now “too big to fail”.

Well fast forward one global pandemic and one unprecedented bailout later, which none other than Hartnett himself framed in the best possible way as follows…

“The monetary and the fiscal stimulus in terms of the announcements thus far, it comes to $20 trillion, $8 trillion of monetary stimulus and $12 trillion of fiscal stimulus. And that number is – it’s a little over 20% of global GDP. So it’s just astonishing and breathtaking and you have to sort of pinch yourself sometimes to sort of realize that it’s actually happening.”

… when in his latest Flows and Liquidity report, the BofA Chief Investment Officer provided an update on this most critical metric and it’s a doozy.

Dubbing it the “Nihilistic Bull”, Hartnett describes the current market as the consequence of a decade-long backdrop of Maximum Liquidity & Minimal Growth still Maximum Bullish, and more importantly, it has led to the value of US financial assets (Wall Street) now hitting an all time high 6.2X size of GDP (Main Street). In other words, not only is Wall Street now “even bigger to fail”, but in its attempt to “fix” inequality, the Fed has made it greater than ever, and the now daily violence on America’s streets is the most immediate consequence… if only those people protesting knew that they should target their anger not at the Capitol but the Marriner Eccles building.

Going back to the chart above, and the market that spawned it, Hartnett writes that “nothing matters but liquidity…GDP loss of $10tn & US claims 53mn numbed by $21tn policy stimulus, $2bn per hour central bank asset purchases.” Furthermore, according to the BofA credit strategist, “the structural view on low yields now shared by all…doesn’t mean to say it is wrong…but it’s inciting a bubble” which is why Hartnett is now confident that the scramble into all asset will not end until the S&P is at 4000, gold $3000, and oil $60, all of which are “probably inconsistent with 0% Treasury yields.”

And while not directly caused by it, it’s worth recalling that the top 5 stocks are now a record 23% og the S&P500, surpassing dramatically the tech bubble peak:

And in the latest indication of just how long in the tooth the current bubble has become, BofA is now recycling the worst puns of 2018 and 2019, to wit:

I’m so bearish, I’m bullish: Minimal Growth = Maximum Liquidity = Maximum Bullish; narrative of 2010s hardens in 2020 as massive Wall St recovery coincides with Main St recession.

Meanwhile, as the market is stuck in the biggest bubble every, the economy is disintegrating, as banks refuse to lend (as discussed extensively here), while states can’t spend, to wit:

Banks won’t lend: 71% of loan officers reported tighter bank lending standards in Q2, the tightest since Q4 ’08.


State & local governments can’t spend: state tax revenues down 37% YoY in New York, down 42% in California, down 53% in Oregon (Exhibit 1); US state & municipal shortfalls could be >$1tn worse-case in 2020 as no back-to-school, no back-to-office, no back-to-revenue.

All of this is of course happening as gold is exploding to daily all time highs as helicopter money is off the charts and deficits soaring: “U.S. federal budget deficit @ 25% of GDP if Phase IV fiscal stimulus >$1tn, highest since 1943 WWII peak of 27.5%.”

Meanwhile, as even Goldman notes, the Dollar’s reserve status is on borrowed time due to a tsunami of printing and debasing: as Hartnett writes, the US debt & deficits to be financed by:

  • Fed balance sheet (“Japanification” means higher UST holdings at Fed – Chart 5), and
  • Debasement of US dollar; big inflection points in US dollar always harbinger of leadership change (1971 = Stagflation, 1980 = Disinflation, 2001 = Globalization, 2020 = Inflation to solve Inequality).

What does all of this mean for markets? Three things – the “summer dip” Hartnett expected may not be coming after all, but 2020 will be the “big top “, and while 2020 is the megabull unleashed by central banks, 2021 will be the bear:

  • Summer dip: late-summer dip (SPX to 3050) thus far wrong but “air pocket” risk grows post +ve July payroll & Phase IV fiscal stimulus; Turkish lira at all-time low = 1st sign capital flow dislocations (as JPY approached 100); lower government yields bullish until credit spreads widen
  • Big top: 2020 risk asset peak most likely at time of vaccine, full capitulation by bears, higher interest rates; history of great bear market rallies predicts SPX 3300-3600 top between Aug-Jan; liquidity driving Wall St overshoots until weaker dollar/wider credit spreads signal credit event or fiscal stimulus/higher yields signal recovery.

His conclusion: “2020 = Bull; 2021 = Bear: bigger government, smaller world, US dollar debasement…big picture themes of 2021…buy volatility & inflation assets.” 

Translation: buy vix, buy gold.

via ZeroHedge News https://ift.tt/30AqONO Tyler Durden

Schiff: People Don’t Understand The Significance Of $2,000 Gold

Schiff: People Don’t Understand The Significance Of $2,000 Gold

Tyler Durden

Fri, 08/07/2020 – 14:42

Via SchiffGold.com,

Gold reached a new milestone Tuesday, breaking above $2,000 for the first time ever. The yellow metal closed just above $2,017 an ounce. Peter talked about gold’s new record high and what it’s telling us in his latest podcast. He says most people still don’t really understand the significance of $2,000 gold.

Peter noted that when gold first peaked its head above $2,000, it immediately sold off. He said that kind of nervousness is exactly what he wants to see in a gold bull market.

Instead of wanting to buy the breakout, they want to sell the high print. And that’s exactly what they did. And of course, once gold pulled back, all the buying that drove it up to $2,000 in the first place was still there. The problem for the sellers, or the shorts, is once it got back above 2,000 again, all the people who wanted to sell 2,000 gold had already sold and the smart money had bought it from them.”

Peter said gold could be building support above $2,000, although it’s too early to tell.

I’ve been saying that the support has been inching higher and higher and higher as more and more buyers enter the market and the supply of sellers is diminished.”

Peter said more evidence of the wall of worry is that we haven’t seen a big rush into gold stocks yet. They are doing well, but they are nowhere near their 2011 highs even though the price of gold is higher than it was at that peak.

I don’t think we’re going to see a meaningful correction in this market until we see that rush, until we see some money actually coming off the sideline, until we see some mainstream investors coming into gold.”

Peter said he was listening to CNBC and one analyst was explaining why gold’s move above $2,000 wasn’t a big deal and predicting the yellow metal will sell off as soon as real interest rates go positive.

I’m just laughing. I mean, just as soon as real interest rates go positive? When is that going to happen? I mean, that’s not even close to happening. Positive real interest rates aren’t even anywhere on the horizon. So, if you think gold is going to keep rising until real interest rates go positive, you should be buying it with both hands. I mean, obviously, there’s no way the Fed is ever going to get in front of the inflation curve and have nominal interest rates higher than the CPI, let alone the actual rate of inflation, which the CPI doesn’t even come close to capturing.”

Peter said if you’re actually worried about gold crashing, you should be more concerned about the stock market, or the real estate market, or the bond market, or the entire economy crashing.

The only reason anything is going up is because real interest rates are negative. So, if that’s your view on gold, you should have the same view on every single asset that there is. But no, I’m sure if you talk to that guy, he’s bullish on the stock market.”

In reality, gold is the only asset that’s not in a bubble because of negative real interest rates.

Silver has gone along for the ride with gold. The white metal was trading just below $26 when Peter recorded his podcast. By Wednesday morning, silver had surged to over $26.80. Peter said $26 silver is still a steal.

Don’t worry is you missed the bottom… You can keep buying now because we are still much closer to the bottom than to the top. You can buy gold and silver at SchiffGold.”

Peter said the only thing that really surprised him about $2,000 gold is that it took so long to get here.

But I think that the thousand dollar milestones are going to start dropping like dominoes here. And I think people are going to take notice, because today, very few people are noticing or commenting on the significance of gold going over 2,000 because they don’t understand it.”

The rising price of gold is telling us that the dollar is in trouble.

The dollar is on fire, and the fire may have begun with the dollar, but it’s going to spread to the financial markets and the entire economy and people just don’t get this.

Peter said that even though the rise in gold is vindicating and financially rewarding, he doesn’t feel like he can really celebrate gold going to $2,000.

This is not a happy occasion because it really portends some real big problems on the horizon. I mean, most Americans don’t have any gold. There is severe economic hardship that the vast majority of Americans are going to be enduring, and gold is basically letting you know that that hardship is on the way.”

Peter said he thinks that the dollar is close to a Wile E. Coyote moment where it drops off the cliff and plummets.

I think that’s what’s going to happen soon to people who are in the dollar. As soon as they look down and realize where they’re standing, the dollar is going to drop like a stone and that’s when the price of gold is going to skyrocket. And so, you’d better be on that rocketship before that ride begins.”

In this podcast, Peter also talks about bitcoin and the Fed’s willingness to commit to more inflation.

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He Wanted To Make Some Money for School Clothes by Selling Mexican Street Corn. The Government Says He Owes $1,415 in Permit Fees.

dreamstime_xxl_191071641

When high school sophomore Miguel Lozano started selling elotes—Mexican street corn—he hoped to use the money he made to buy clothes for school. The Yamhill County, Oregon, teenager will have to put that goal aside, though, because last week the local government shuttered his makeshift cart.

Though Lozano already has a food service card, he will need to come up with $1,415 for a permit should he want to continue his small operation. The stratospheric cost would deter many would-be entrepreneurs, much less a teenager who just wants to sell corn on the cob for a few extra bucks.

Enforcing health standards “is their duty,” Lozano told a local NBC affiliate. “The problem with that is that they’re not going to stop a kid from selling lemonade.”

Lozano might be surprised to know that in many places, health inspectors would do just that. Jurisdictions across the country have cracked down on kids’ lemonade stands for operating sans permit. Just last year, Colorado and Texas both legalized lemonade stands run by children, which is a sentence no one should have to write.

A woman who set up a free food pantry in Asotin County, Washington, has not been as fortunate as entrepreneurial children in Texas and Colorado. Kathy Hay’s makeshift charity was squashed after the county caught wind of it. If she continued to collect food for the needy without the proper licensing, they said, they would press criminal charges.

“The ideal outcome would be for the county to let me and anybody else who would like to have a little free pantry to be able to open one up without being afraid that they’re going to be charged with criminal behavior,” Hay told me in April.

Lozano offered a similar sentiment in a Facebook post. “I just wanted to help out my community and family,” he wrote. “But we all know how this world is.”

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Jo Jorgensen on Black Lives Matter: ‘I Think We Should Support the Protesters’

Jo Jorgensen

It’s Thursday in Nashville. Libertarian presidential nominee Jo Jorgensen has parked her blue campaign bus in Centennial Park for her “Real Change For Real People” tour. There are tables with masks and hand sanitizer. Supporters gather early, their excitement seemingly unaffected by the pandemic precautions. A few cars slow down to observe the gathering in the park. After a mic check, Jorgensen is introduced and begins to speak.

Almost immediately, her speech covers the two most pressing topics of the summer: criminal justice reform and the COVID-19 pandemic.

Back in June, Jorgensen attended a Black Lives Matter vigil for victims of police brutality. Her presence there received mixed reviews, with libertarians who distrust the official Black Lives Matter organization for some of its political and economic views facing off those who believe libertarians should be present in the Black Lives Matter movement protests. (The differences between Black Lives Matter the organization and the movement are explained here.) Regardless of the potential backlash, Jorgensen doubled down on her stance.

“We need change, and I’m glad [the protests] are getting the attention,” Jorgensen tells me on the bus after the speech.

Jorgensen says that the Libertarian Party agrees with the national Black Lives Matter organization on several issues, such as the drug war, no-knock raids, and qualified immunity.

“But their answer is more government,” she says, and “big government is what got us here to begin with.”

Jorgensen mentions a meeting she had with a Black Lives Matter activist in Tulsa, Oklahoma. (The activist was not affiliated with the official Black Lives Matter organization.) They discussed the government’s role in discrimination, with Jorgensen pointing out that the buses in the famous Montgomery Bus Boycott were publicly run and that segregation laws were enforced even though black residents made up the majority of the ridership. “Now imagine today, if Uber decided to discriminate against the majority of their customers. What if they treated their best customers that way? They would go out of business,” she argued. Jorgensen says the activist told her that the experience was “opening his eyes.”

“Libertarians have been talking about these issues for 40 years,” she says. “I think we should support the protesters, but, at the same time, get rid of the opportunistic people hijacking the movement.” Jorgensen points to the people who have used the protests to loot and commit violence: “They are going around basically inserting themselves into peaceful protest. And I’ve seen many clips of the protesters saying, ‘Stop it. Go away. You’re not helping us. We don’t want you here.'”

When the demonstrations first began in May, black organizers and protesters across the nation desperately attempted to keep the violence in check. In one video, D.C. protesters hand-deliver a young man to nearby police after seeing him destroy a sidewalk. In her firsthand account of the Nashville protests, author Nancy French tweeted a video of a black protester arguing with white protesters over property destruction. 

“We need to do what we can to keep the protests on target,” Jorgensen adds.

The conversation then shifts to the COVID-19 pandemic.

“We’re all adults, and it shouldn’t be against the law to be stupid,” Jorgensen says. 

Jorgensen notes that with personal freedom comes responsibility. While she doesn’t support mask mandates (“unless we’re talking about a government building”) or even a forced vaccine in the event that one is developed, Jorgensen sees private companies enacting mask policies as a sign that most Americans are taking the pandemic seriously.

“That just shows what libertarians have been saying for decades, which is just because the government doesn’t tell you to do it doesn’t mean it won’t get done,” she says. “We still have entities who are requiring us to wear masks. We don’t have to wait until the government tells us to. But this way, we have choice.”

Jorgensen adds that private companies wouldn’t enact mask policies if they thought doing so would harm their profits: “I don’t think they’d be requiring a mask if they thought that people would stop shopping in their store and they’d go out of business. So ultimately this is coming from the individual.”

What does Jorgensen think the executive branch should be doing in the pandemic? “I think the president has the obligation to lead the country and to get information out there to warn people,” she says. She is upset at President Donald Trump for saying, “If you don’t have [COVID-19] symptoms…don’t get the test.” Given the disease’s asymptomatic spread and long incubation period, she says, this was irresponsible advice.

Jorgensen also notes the variety of ways the Food and Drug Administration (FDA) and other federal agencies have restricted access to mass testing. Such testing, she notes, contributed greatly to South Korea’s flattening of the outbreak curve.

“We lost tens of millions of jobs,” she says. “If we had the testing out there, if we didn’t have the FDA obstacles, if we didn’t have so many other government obstacles, we could’ve had widespread testing. And then we could have known which people should have stayed home and which could go out.”

Our conversation concludes with a question about the current debate over voting by mail.

“It’s fine with me if we have mail-in votes,” she says. “As long as we do it through FedEx.”

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Trump’s TikTok, WeChat Ban Won’t End Up Blocking Fortnite and League of Legends

leagueoflegends_1161x653

After President Donald Trump put out a pair of executive orders banning transactions with the Chinese companies that own the popular communication apps TikTok and WeChat, people familiar with Tencent, the Chinese company that owns WeChat, started pointing out that Tencent outright owns or has major stakes in many high-profile U.S.-based video game companies. Did this mean, they asked, that some of the most popular games in the world are going to get banned in the United States?

Tencent owns the U.S.-based Riot Games, publisher of League of Legends, one of the most popular online competitive games. It owns 40 percent of Epic Games, publisher of the online gaming juggernaut Fortnite. It holds significant stakes in game companies that are probably less well-known to non-gamers, but suffice it to say that if you play video games online, it’s extremely likely that you’ve at some point been playing a game that Tencent has a stake in.

Here’s the vague and weird wording of the executive order as it pertains to Tencent:

The following actions shall be prohibited beginning 45 days after the date of this order, to the extent permitted under applicable law: any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd. (a.k.a. Téngxùn Kònggǔ Yǒuxiàn Gōngsī), Shenzhen, China, or any subsidiary of that entity, as identified by the Secretary of Commerce (Secretary) under section 1(c) of this order.

It looks at first that it only bans WeChat—which is bad enough. We absolutely should not accept the idea that the White House has the authority for a blanket order banning citizens from using media platforms. If it thinks these tools are a national security risk, it can stop (and apparently has stopped) the government’s own employees and contractors from using them.

But the paragraph also ropes in “any subsidiary of that entity,” which naturally made people start asking whether that covers the games that Tencent either owns outright or has major stakes in.

The White House says the answer is no: An official has told the Los Angeles Times that this order only bans WeChat. What the executive order actually says is that the secretary of commerce will decide which transactions will be subject to these rules. So as far as it’s possible to determine from the wording of the document, the WeChat order won’t ban these video game companies…as long as the secretary of commerce doesn’t include them.

We can be fairly confident that he won’t. Riot Games was formed in Los Angeles before it was sold to Tencent, and it employs more than 1,000 people here in the United States. Banning video games would cost thousands of American jobs. It would have devastating effects for the U.S. economy (especially during this pandemic) and would face extremely high public resistance.

Nevertheless, this confusion shows both how little the Trump administration grasps any number of issues around technology, communications, and the global economy and why executive orders are just a terrible tool for managing them.

After all: If data mining, surveillance, and censorship are reasons to justify the TikTok and WeChat bans, why wouldn’t games with Chinese connections be excluded? Video game companies also collect lots of data about their users, data that can be used to surveil people’s behavior. They are also communication platforms, and they can get tangled up in censorship. Just last year, the video game company Activision Blizzard (of which Tencent owns 5 percent) landed in controversy when it suspended a professional Hearthstone gamer for showing support for Hong Kong protesters. The relationship between game companies and the Chinese government has, in fact, become a big topic for debate among gamers, much in the same way that movies being edited or altered for Chinese distribution is a discussion among film folks.

These are complex matters that can’t be addressed by a simple executive order. Especially this mess of an executive order.

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Was the L.A. District Attorney’s Husband Acting in Self-Defense When He Threatened to Shoot Protesters on His Porch?

David-Lacey-pointing-gun

If you were jolted awake at 5 a.m. by an angry clamor in front of your house, followed by a ring of the doorbell, you probably would be alarmed. You might even grab a gun. That’s what David Lacey, husband of Los Angeles County District Attorney Jackie Lacey, did on March 2, when Black Lives Matter activists came to the couple’s home for a predawn protest. But what he did next resulted in three misdemeanor assault charges that California Attorney General Xavier Becerra’s office announced this week: Lacey pointed the gun at three protesters, told them to get off his porch, and threatened to shoot them if they didn’t.

The incident is broadly similar to the June 28 encounter that led to felony charges against Mark and Patricia McCloskey, who brandished guns in response to Black Lives Matter protesters passing by their house in a private neighborhood of St. Louis. In both cases, the gun wielders claim to have acted in self-defense based on fears that were reasonable in the circumstances. But since the Laceys are black, the Los Angeles incident does not fit the easy narrative of privileged white people who are irrationally fearful of dark-skinned demonstrators. It is therefore a useful opportunity to consider the legal principles that distinguish between assault and self-defense, uncolored by charges of racial prejudice.

Unlike the McCloskeys, who happened to live along the shortcut that protesters took on the way to St. Louis Mayor Lyda Krewson’s house, Jackie Lacey was the intended target of the demonstrators in Los Angeles, who say they were at her home to demand a meeting about her handling of excessive force allegations against police officers. But unlike the St. Louis protesters, who were trespassing on a private street, the vast majority of the 30 or so drum-banging, bullhorn-amplified L.A. protesters stayed on public property as three of them approached the front door of the Laceys’ house and rang the bell. Such an unsolicited visit, while obnoxious given the hour, is not inherently illegal.

Once David Lacey opened the door, he had every right to demand that the activists leave, just as any homeowner would have the right to turn away an unwanted salesman, missionary, or propagandist. The question is whether he had a right to point his gun at the people on his porch and threaten to shoot them. “Get off of my porch,” he says in the cellphone video of the incident while pointing a handgun at the protesters. “Are you gonna shoot me?” asks Melina Abdullah, co-founder the local Black Lives Matter chapter. “I will shoot you,” Lacey replies. “Get off of my porch.”

According to California’s jury instructions regarding assault with a deadly weapon, a defendant cannot be convicted if he acted “in self-defense” or “in defense of another.” That exception applies when the defendant used or threatened force because he “reasonably believed” he or someone else was “in imminent danger of suffering bodily injury”; “reasonably believed that the immediate use of force was necessary to defend against that danger”; and “used no more force than was reasonably necessary.” California does not require someone who faces such a threat to retreat from the confrontation, and deadly force is presumptively legitimate when used against someone who “unlawfully and forcibly” entered one’s home (which, assuming the protesters did nothing more than ring the bell and ask to speak with the D.A., does not describe this case).

Jackie Lacey, who is in the midst of a heated re-election race against former San Francisco District Attorney George Gascón and has been the target of weekly demonstrations at her office by protesters demanding her resignation, says her husband’s reaction was understandable in light of the “harassment” the couple had suffered prior to the incident. “My husband acted in fear for my safety after we were subjected to months of harassment that included a death threat no less than a week earlier,” she said on Tuesday in a statement from her re-election campaign. “Protesters arrived at my house shortly after 5 a.m. while I was upstairs. My husband felt that we were in danger and acted out of genuine concern for our well-being.”

Carl Douglas, an attorney representing Abdullah, says that explanation is “laughable” because the Laceys could see via their doorbell camera that the protesters were unarmed. Abdullah, who chairs the Department of Pan-African Studies at Cal State L.A., adds that Jackie Lacey knew her and the two other protesters, although it’s not clear whether her husband recognized them. “I would think that if you’re afraid you would stay in the house and call the police because you were in fear,” Abdullah told the Los Angeles Times. “They weren’t in fear. They were agitated.”

While the case does hinge partly on the distinction between anger and fear, the Laceys, assuming they were reasonably afraid, were under no obligation to cower in their house and wait for the police. David Lacey might have thought that pointing his gun at the uninvited guests was necessary to eliminate the threat he perceived. The question is whether a jury will agree that his perception was not only sincere but reasonable.

Abdullah notes that state prosecutors, who are handling the case to avoid a conflict of interest, could have charged David Lacey with felonies rather than misdemeanors. Assault with a firearm is a “wobbler” offense that can be charged as a misdemeanor punishable by up to a year in jail or as a felony punishable by up to four years in prison. Abdullah says the choice of misdemeanor charges suggests that Lacey is receiving preferential treatment because his wife is the D.A.

Loyola law professor Laurie Levenson, a former federal prosecutor, disagrees. Although she does not condone Lacey’s behavior, she thinks felony charges would be excessive in this case.

In an interview with the Los Angeles Times, Levenson noted several mitigating factors—including the earlier threats against Lacey’s wife, the fact that he was confronted at his home, and his clean criminal record—that might have influenced the decision to file misdemeanor charges. “I don’t know whether he is thinking particularly clearly at 5 a.m. when people are on his doorstep and there has been increasing harassment of his wife,” she said. “It’s easy to say he shouldn’t have been so afraid, he should have called the police, he made an unwise decision. But making an unwise decision doesn’t always end up with a felony or even a criminal charge.”

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Trump’s TikTok, WeChat Ban Won’t End Up Blocking Fortnite and League of Legends

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After President Donald Trump put out a pair of executive orders banning transactions with the Chinese companies that own the popular communication apps TikTok and WeChat, people familiar with Tencent, the Chinese company that owns WeChat, started pointing out that Tencent outright owns or has major stakes in many high-profile U.S.-based video game companies. Did this mean, they asked, that some of the most popular games in the world are going to get banned in the United States?

Tencent owns the U.S.-based Riot Games, publisher of League of Legends, one of the most popular online competitive games. It owns 40 percent of Epic Games, publisher of the online gaming juggernaut Fortnite. It holds significant stakes in game companies that are probably less well-known to non-gamers, but suffice it to say that if you play video games online, it’s extremely likely that you’ve at some point been playing a game that Tencent has a stake in.

Here’s the vague and weird wording of the executive order as it pertains to Tencent:

The following actions shall be prohibited beginning 45 days after the date of this order, to the extent permitted under applicable law: any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd. (a.k.a. Téngxùn Kònggǔ Yǒuxiàn Gōngsī), Shenzhen, China, or any subsidiary of that entity, as identified by the Secretary of Commerce (Secretary) under section 1(c) of this order.

It looks at first that it only bans WeChat—which is bad enough. We absolutely should not accept the idea that the White House has the authority for a blanket order banning citizens from using media platforms. If it thinks these tools are a national security risk, it can stop (and apparently has stopped) the government’s own employees and contractors from using them.

But the paragraph also ropes in “any subsidiary of that entity,” which naturally made people start asking whether that covers the games that Tencent either owns outright or has major stakes in.

The White House says the answer is no: An official has told the Los Angeles Times that this order only bans WeChat. What the executive order actually says is that the secretary of commerce will decide which transactions will be subject to these rules. So as far as it’s possible to determine from the wording of the document, the WeChat order won’t ban these video game companies…as long as the secretary of commerce doesn’t include them.

We can be fairly confident that he won’t. Riot Games was formed in Los Angeles before it was sold to Tencent, and it employs more than 1,000 people here in the United States. Banning video games would cost thousands of American jobs. It would have devastating effects for the U.S. economy (especially during this pandemic) and would face extremely high public resistance.

Nevertheless, this confusion shows both how little the Trump administration grasps any number of issues around technology, communications, and the global economy and why executive orders are just a terrible tool for managing them.

After all: If data mining, surveillance, and censorship are reasons to justify the TikTok and WeChat bans, why wouldn’t games with Chinese connections be excluded? Video game companies also collect lots of data about their users, data that can be used to surveil people’s behavior. They are also communication platforms, and they can get tangled up in censorship. Just last year, the video game company Activision Blizzard (of which Tencent owns 5 percent) landed in controversy when it suspended a professional Hearthstone gamer for showing support for Hong Kong protesters. The relationship between game companies and the Chinese government has, in fact, become a big topic for debate among gamers, much in the same way that movies being edited or altered for Chinese distribution is a discussion among film folks.

These are complex matters that can’t be addressed by a simple executive order. Especially this mess of an executive order.

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