Buffett’s Berkshire Slashes Wells Fargo Stake By 42%

Buffett’s Berkshire Slashes Wells Fargo Stake By 42%

Tyler Durden

Fri, 09/04/2020 – 17:25

Two weeks after jaws dropped across Wall Street when the latest Berkshire 13F revealed that the Warren Buffett, now 90, had dumped his entire stake in Goldman and trimmed most of his other bank holdings (including cutting his Wells Fargo holdings by about a quarter) while buying Barrick Gold in a bet on “hard assets” that was formerly seen as anathema for Buffett…

… moments ago it emerged that Buffett has continued to pare his bank exposure and according to its latest Berkshire 13G filing, Berkshire Hathaway showed that as of Sept 4 it had sold another 100 million shares of Wells, taking its position to just 136.3 million. The reduction is a 42% drop in Berkshire’s last disclosed position of 237.6 million shares; Berkshire’s stake is now 3.3% of Wells stock, down from 5.96% previously.

Considering that for years Wells Fargo was synonymous with Buffett’s long-running bet on US banks – and on America in general – the move is certainly ominous for all those predicting an imminent bank stock renaissance (and comes at a time when Buffett is also pivoting toward Japan’s largest trading houses).

The 13G showed that in addition to 136.3 million shares held by Berkshire, another 1.2 million shares were held directly by Warren Buffett, and another 7.7 million shares by Nebraska Furniture Mart, The Fechheimer Brothers Company and BH Finance LLC.

As a reminder, heading into Q2, Buffett trimmed his stake from 323.2 million as of March 31 to 237.6 million shares at the end of Q2. The continued liquidation of about 100 million share every month suggests that Buffett is well on its way to dumping his entire Wells stake. The question now is whether Buffett was also dumping other US banks – failing to see a rebound catalyst – or his liquidation was confined solely to the bank which has emerged as the most distressed among US money center banks.

via ZeroHedge News https://ift.tt/31ZyGsT Tyler Durden

China Surprises World With First Launch Of Reusable Space Craft

China Surprises World With First Launch Of Reusable Space Craft

Tyler Durden

Fri, 09/04/2020 – 17:25

Beijing isn’t letting a global pandemic and deteriorating relations with the US stop it from pursuing eternal national glory in the final frontier – space.

According to reports in mainland state-backed media picked up by the SCMP, China has successfully launched a reusable experimental spacecraft.

The launch took place in the northern province of Inner Mongolia, where the reusable vessel was launched via a Long March-2F rocket from the Jiuquan satellite center in Inner Mongolia on Friday. It’s scheduled to return to the landing site after orbiting the earth for a period.

The spacecraft will test reusable technologies during its flight “providing technological support for the peaceful use of space.”

The latest mission was shrouded in secrecy: a copy of an official memo circulating on social media warned staff and visitors not to take any video, or allow any details about the event to leak.

A memo that served as a warning read that “all units should strengthen personnel security education and personnel management during missions to ensure that there is no leakage of secrets.”

A military source confirmed the document’s authenticity to the SCMP, saying “there are many firsts in this launch. The spacecraft is new, the launch method is also different. That’s why we need to make sure there is extra security.”

Over in the US, Boeing is developing the US X-37B, which experts noted appears to be similar to China’s new reusable space craft.

For those who aren’t familiar with it, the US X-37B is an unmanned space plane that operates like a smaller version of a space shuttle. It’s launched into space by a rocket and cruises back to earth for a runway landing, allowing the vessel to be reused.

SCMP says the Chinese reusable space plane has flown on missions before, but never before in a test of space flight. It’s only the latest development in China’s space program, which also recently launched the first independent probe mission to Mars. US Space Force’s official website said the primary objectives of the X-37B missions were to develop “reusable spacecraft technologies for America’s future in space and operating experiments which can be returned to, and examined, on earth.”

Given all the similarities to the X-37B, we wonder how long it will take for Peter Navarro to tell Fox or, better yet, CNN that Beijing stole the original technology from the US before building on it.

via ZeroHedge News https://ift.tt/2EPXb3d Tyler Durden

“Coffee Mug ‘Canceled’ For Promoting Domestic Violence”… & Other Absurdities

“Coffee Mug ‘Canceled’ For Promoting Domestic Violence”… & Other Absurdities

Tyler Durden

Fri, 09/04/2020 – 17:05

Authored by Simon Black via SovereignMan.com,

Are you ready for this week’s absurdity?

Here’s our Friday roll-up of the most ridiculous stories from around the world that are threats to your liberty, risks to your prosperity… and on occasion, inspiring poetic justice.

Mark Zuckerberg predicts civil unrest in November

File this one away under “No sh*t, Sherlock…” In a yet-to-be aired interview with Axios HBO, Mark Zuckerberg states the obvious that, come election night in the Land of the Free, there most likely won’t be a winner declared because it will take days, if not weeks, to count all the mail-in ballots.

Moreover, says Zuckerberg, there is “a heightened risk of civil unrest” especially between the end of voting and the time the results are announced.

(And to be even more obvious, depending on who wins the Presidency, we believe the resulting civil unrest will make all the rioting we’ve seen so far in 2020 look like a picnic in the park… but that’s another story.)

Disney cancels “Zip-a-dee-doo-dah” song 

There may be no other large corporation that’s more woke than Disney. The media giant has changed everything– its shows, movies, rides, and attractions, to conform to the Twitter mob.

Disney has now opted to remove the song “Zip-a-dee-doo-dah” from its Disneyland theme park.

Zip-a-dee-doo-dah was released as part of Disney’s 1946 film Song of the South… and as you can probably imagine, Song of the South didn’t handle the issue of race as delicately as it would be treated today.

(I mean, the movie title has the word ‘south’ in it, so it is automatically offensive to the Twitter mob.)

OK great. So the movie offends the Twitter mob. But Disney is cancelling a SONG that was part of the movie’s original soundtrack. WHY?

According to Disney’s official response, “The removal of the song from Downtown Disney’s background music is part of a continuous process to deliver an environment that features stories that are relevant and inclusive.”

What exactly are the lyrics of Zip-a-dee-doo-dah that make it so inflammatory?

“My oh my what a wonderful day / plenty of sunshine headin’ my way.”

Rage! Fury!

Click here to read the full story. 

Coffee mug cancelled for promoting domestic violence

Finally, the real source of domestic violence has been identified and eradicated.

The Twitter mob successfully secured the removal of a coffee mug from the British grocery chain, Sainsbury’s.

The mug featured a quote from the classic children’s book Matilda by Roald Dahl.

The mug said, “A brilliant idea hit her.”

After multiple Twitter-mobsters took note of the mug, the leader of a women’s group also got in on the action.

They claimed that the mug promoted domestic violence against women, because it could be read, “A brilliant idea: hit her.”

The grocery store apologized, and removed the mug.

Well done ladies! (But not in the cooked meat sense of the term.)

Click here to read the full story. 

University creates tech to scan Twitter for misogynist Tweets

An Australian University is developing a technology that can identify misogynist and sexist Tweets.

Currently, Tweets have to be reported before they are deleted, which the team sees as a problem.

This technology will make it easier to censor the Tweets automatically– or at least send the Twitter mob after fresh victims.

Think of this as a way to automate the thought police, so that no stone goes unturned in identifying microaggressions. And in the future, it can be expanded to any woke principles that the Twitter mob sees fit.

Of course, the algorithm is only partially accurate. So the misidentified will just have to take one for the team.

Click here to read the full story. 

German man fined €1,500 for flipping off speed camera

For driving 9 km/h over the speed limit (about 5 mph) Germany usually issues a €20 ticket.

But when the automatic traffic cameras flashed to take a picture of the minor infraction, one man decided to flip it the bird.

The picture of him with his middle finger up made it to the German authorities. And they decided to fine him €1,500 ($1,775) instead, for the crime of being offensive.

He also had his license revoked for a month.

But at least he wasn’t caught walking his dog for only 59 minutes per day otherwise the penalties would have been even more severe!

Click here to read the full story. 

Pregnant Australian woman arrested for social media post about COVID

Police in Victoria, Australia entered a pregnant woman’s home, handcuffed, and arrested her in front of her two young children.

It was all because of a post she made encouraging people to attend an anti-lockdown protest.

The woman was also served with a search warrant for her electronics.

The encounter was recorded until police apparently turned off the recording in order to seize the cell phone it was being filmed on. “Any device in the house, we’re taking,” the officer in the video says.

The woman was taken into custody, and charged with incitement.

It is a breach of law, under Covid rules, to gather in large groups. And encouraging people to break that law is also illegal.

It’s absolute insanity that this is where we are at.

The government can do whatever it wants to restrict the freedom of its citizens– right up to shackling and caging a pregnant woman, in front of her kids, over a Facebook post.

All in the name of safety from a virus.

Click here to read the full story and watch the video.

*  *  *

On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years. That’s why we published a new, 50-page long Ultimate Guide on Gold & Silver that you can download here.

via ZeroHedge News https://ift.tt/31ZRGHZ Tyler Durden

Watch Live: Trump Holds Press Briefing After Worst Market Rout Since March

Watch Live: Trump Holds Press Briefing After Worst Market Rout Since March

Tyler Durden

Fri, 09/04/2020 – 16:55

After dispatching Mike Pence to try and pump the market after Friday morning’s jobs number, President Trump announced that he would hold a briefing with the press at 11:30ET, before delaying it until 1700ET, an hour after markets have closed for the long holiday weekend.

While a story about a comment Trump allegedly made during a visit to France two years ago continues to dominate the political news cycle, we imagine Trump plans to deliver some more details on “Operation Warp Speed” and other initiatives to help obtain a vaccine for SARS-CoV-2 before the end of the year.

Of course, the late-week market rout will likely loom large over the briefing.

But that won’t stop the mainstream press from bashing Trump for wasting our time with another “lie-fest”, Biden’s latest ‘press briefing’ featured hand-picked reporters and one softball question after another.

via ZeroHedge News https://ift.tt/32WFAOR Tyler Durden

Facebook Need Not Remove “Russia State-Controlled Media” Label from Maffick’s “In the Now,” “Waste-Ed,” and “Soapbox” Pages

From Maffick LLC v. Facebook, Inc., decided yesterday by Judge James Donato (N.D. Cal.):

Plaintiff Maffick LLC seeks a temporary restraining order directing defendant Facebook, Inc., to take down a “Russia state-controlled media” label that Facebook posted on Maffick’s “In the Now,” “Waste-Ed” and “Soapbox” pages….

Maffick’s TRO application also raises a concern about prior restraint. A court order that forbids speech activities, which is what Maffick seeks, is a “classic prior restraint of speech.” “Prior restraints pose the ‘most serious and the least tolerable infringement on First Amendment rights,'” and there is a “historical and heavy presumption against such restraints.” …

Although Maffick asserted six causes of action against Facebook in its complaint, Dkt. No. 1, it seeks a TRO on just four of those claims: (1) libel under California Civil Code Section 45; (2) Section 43(a) of the Lanham Act (15 U.S.C. § 1125(a)(1)(A)); (3) the California Unfair Competition Law (Cal. Bus. & Prof. Code § 17200); and (4) interference with prospective economic advantage claim under California state law.

The merits inquiry is considerably streamlined by the fact that all four claims hinge on the proposition that the Russian media label is false. Consequently, to win a TRO, Maffick must demonstrate that it is likely to succeed in showing that the “Russia state-controlled media” label is false. It has not crossed that threshold.

Even assuming that the “Russia state-controlled media” label is a statement of fact—and not merely an opinion, as Facebook contends—the record before the Court establishes only that the question of falsity is disputed.

Facebook, on its part, has tendered a substantial amount of evidence in support of its view that Maffick is linked to the Russian government. For example, Facebook has established, without dispute by Maffick, that a prior entity, Maffick Media GmbH (“Maffick Media”), openly acknowledged significant ties to the Russian government. Maffick’s Soapbox, Waste-Ed, and In the Now channels on Facebook are virtually identical to the same channels Maffick Media previously sponsored under the same names. Maffick still uses Maffick Media email addresses for these channels—”hello@maffick.media” for In the Now; “waste-ed@maffick.media” for Waste-Ed; and “soapbox@maffick.media” for Soapbox.

Maffick’s current CEO, Anissa Naouai, expressly stated in a declaration accompanying the TRO application that she “owned a 49% interest” in Maffick Media, and that another “part-owner” was an entity known as Ruptly GmbH. Facebook submitted evidence that Ruptly is a subsidiary of RT (formerly Russia Today), which is “funded by the Russian government.” A “2017 report from the U.S. Director of National Intelligence about Russia’s meddling in the 2016 U.S. presidential election” stated that “RT is considered the ‘Kremlin’s principal international propaganda outlet.'”When Facebook temporarily suspended these pages in February 2019, “RT’s editor-in-chief, Margarita Simonyan, tweeted…: ‘Facebook has blocked our projects with billions of views!!!’ “Naouai’s reply declaration also states that while she is a United States citizen, she lived for years in Moscow, was employed by Russia Today, and hosted an opinion show for RT called “In the Now.”

This is a considerable amount of evidence in Facebook’s favor, and Maffick does not meaningfully contest it. Rather than challenging this evidence directly, Maffick relies almost entirely on declarations by Naouai, its CEO. For the most part, the declarations offer purely conclusory statements to the effect that Maffick is free and clear of Maffick Media and Russia. For example, Naouai avers that she “promptly formed a Delaware limited liability company called Maffick LLC” after moving to Los Angeles in June 2019. She states that while she “chose to continu[e] using the ‘Maffick’ name for the new LLC, Maffick LLC is not related to or associated with Maffick Media (or Ruptly).” Naouai also declares that “Maffick is not controlled operationally or editorially by the Russian government or by Russian state entities or officials,” and further, “RT does not exercise control over me, nor does it exercise control over the content on Maffick’s channels.”

This evidence is little more than ipse dixit from a party-affiliated declarant. In effect, Maffick contends that it is likely to succeed on the merits because its CEO says so. That is far from enough to establish a likelihood of success on the merits, particularly in light of the largely undisputed counter-evidence Facebook tendered.

This is not to say that Facebook has proven truth as a defense, which it was not required to do in opposition to the TRO, or that Maffick has no hope of prevailing on any of its claims. It means only that Maffick has not carried its burden of demonstrating a probability of success on the merits that might justify the extraordinary relief of an injunction….

In light of this determination of the merits issue, the Court need not reach Facebook’s argument that the Russian state media label is a non-actionable opinion. The Court also declines to formally rule on Facebook’s defensive argument that the proposed injunction would be an unconstitutional prior restraint. The TRO application has been denied for more straightforward reasons, and so definitively deciding the constitutional question Facebook poses at this time is not absolutely necessary….

The balance of the equities tips in Facebook’s favor, if anything. As the Ninth Circuit concluded in Garcia, the plaintiff’s “thin copyright claim” did not outweigh the “historical and heavy presumption against” prior restraints. So too here, where Maffick asks to restrain Facebook’s speech on uncompelling evidence of falsity. The Court also notes the public interest served by Facebook’s notices to “help its users better understand the sources of news content they see on Facebook” which can help them “make informed decisions about what they are reading.” The absence of proof that the balance of hardships tips sharply in Maffick’s direction further underscores that an injunction is not warranted, particularly with respect to the “serious question” inquiry….

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Facebook Need Not Remove “Russia State-Controlled Media” Label from Maffick’s “In the Now,” “Waste-Ed,” and “Soapbox” Pages

From Maffick LLC v. Facebook, Inc., decided yesterday by Judge James Donato (N.D. Cal.):

Plaintiff Maffick LLC seeks a temporary restraining order directing defendant Facebook, Inc., to take down a “Russia state-controlled media” label that Facebook posted on Maffick’s “In the Now,” “Waste-Ed” and “Soapbox” pages….

Maffick’s TRO application also raises a concern about prior restraint. A court order that forbids speech activities, which is what Maffick seeks, is a “classic prior restraint of speech.” “Prior restraints pose the ‘most serious and the least tolerable infringement on First Amendment rights,'” and there is a “historical and heavy presumption against such restraints.” …

Although Maffick asserted six causes of action against Facebook in its complaint, Dkt. No. 1, it seeks a TRO on just four of those claims: (1) libel under California Civil Code Section 45; (2) Section 43(a) of the Lanham Act (15 U.S.C. § 1125(a)(1)(A)); (3) the California Unfair Competition Law (Cal. Bus. & Prof. Code § 17200); and (4) interference with prospective economic advantage claim under California state law.

The merits inquiry is considerably streamlined by the fact that all four claims hinge on the proposition that the Russian media label is false. Consequently, to win a TRO, Maffick must demonstrate that it is likely to succeed in showing that the “Russia state-controlled media” label is false. It has not crossed that threshold.

Even assuming that the “Russia state-controlled media” label is a statement of fact—and not merely an opinion, as Facebook contends—the record before the Court establishes only that the question of falsity is disputed.

Facebook, on its part, has tendered a substantial amount of evidence in support of its view that Maffick is linked to the Russian government. For example, Facebook has established, without dispute by Maffick, that a prior entity, Maffick Media GmbH (“Maffick Media”), openly acknowledged significant ties to the Russian government. Maffick’s Soapbox, Waste-Ed, and In the Now channels on Facebook are virtually identical to the same channels Maffick Media previously sponsored under the same names. Maffick still uses Maffick Media email addresses for these channels—”hello@maffick.media” for In the Now; “waste-ed@maffick.media” for Waste-Ed; and “soapbox@maffick.media” for Soapbox.

Maffick’s current CEO, Anissa Naouai, expressly stated in a declaration accompanying the TRO application that she “owned a 49% interest” in Maffick Media, and that another “part-owner” was an entity known as Ruptly GmbH. Facebook submitted evidence that Ruptly is a subsidiary of RT (formerly Russia Today), which is “funded by the Russian government.” A “2017 report from the U.S. Director of National Intelligence about Russia’s meddling in the 2016 U.S. presidential election” stated that “RT is considered the ‘Kremlin’s principal international propaganda outlet.'”When Facebook temporarily suspended these pages in February 2019, “RT’s editor-in-chief, Margarita Simonyan, tweeted…: ‘Facebook has blocked our projects with billions of views!!!’ “Naouai’s reply declaration also states that while she is a United States citizen, she lived for years in Moscow, was employed by Russia Today, and hosted an opinion show for RT called “In the Now.”

This is a considerable amount of evidence in Facebook’s favor, and Maffick does not meaningfully contest it. Rather than challenging this evidence directly, Maffick relies almost entirely on declarations by Naouai, its CEO. For the most part, the declarations offer purely conclusory statements to the effect that Maffick is free and clear of Maffick Media and Russia. For example, Naouai avers that she “promptly formed a Delaware limited liability company called Maffick LLC” after moving to Los Angeles in June 2019. She states that while she “chose to continu[e] using the ‘Maffick’ name for the new LLC, Maffick LLC is not related to or associated with Maffick Media (or Ruptly).” Naouai also declares that “Maffick is not controlled operationally or editorially by the Russian government or by Russian state entities or officials,” and further, “RT does not exercise control over me, nor does it exercise control over the content on Maffick’s channels.”

This evidence is little more than ipse dixit from a party-affiliated declarant. In effect, Maffick contends that it is likely to succeed on the merits because its CEO says so. That is far from enough to establish a likelihood of success on the merits, particularly in light of the largely undisputed counter-evidence Facebook tendered.

This is not to say that Facebook has proven truth as a defense, which it was not required to do in opposition to the TRO, or that Maffick has no hope of prevailing on any of its claims. It means only that Maffick has not carried its burden of demonstrating a probability of success on the merits that might justify the extraordinary relief of an injunction….

In light of this determination of the merits issue, the Court need not reach Facebook’s argument that the Russian state media label is a non-actionable opinion. The Court also declines to formally rule on Facebook’s defensive argument that the proposed injunction would be an unconstitutional prior restraint. The TRO application has been denied for more straightforward reasons, and so definitively deciding the constitutional question Facebook poses at this time is not absolutely necessary….

The balance of the equities tips in Facebook’s favor, if anything. As the Ninth Circuit concluded in Garcia, the plaintiff’s “thin copyright claim” did not outweigh the “historical and heavy presumption against” prior restraints. So too here, where Maffick asks to restrain Facebook’s speech on uncompelling evidence of falsity. The Court also notes the public interest served by Facebook’s notices to “help its users better understand the sources of news content they see on Facebook” which can help them “make informed decisions about what they are reading.” The absence of proof that the balance of hardships tips sharply in Maffick’s direction further underscores that an injunction is not warranted, particularly with respect to the “serious question” inquiry….

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Be Skeptical of Stories About TikTok ‘Benadryl Challenge’ Overdoses

Benadryl_1161x653

A teen in Oklahoma City reportedly died in August of an overdose of Benadryl pills, and this tragedy is fueling yet another social media “challenge” panic. Are teens really trying to convince other teens to take tons of allergy pills to get high?

As with all of these social media panics that start bouncing around the web and local news networks, this story has kernels of truth to it while suggesting a trend that is probably exaggerated. Remember the “Tide Pod challenge”? Some teens did genuinely post videos of themselves eating Tide Pods, and there was a temporary increase in calls to poison control for laundry detergent ingestion. But the kind of national panic that led to involvement by fearmongering lawmakers was just completely over the top relative to the actual risks.

Similarly, the “Benadryl challenge” starts with something real. Three teens in Texas in May sought medical treatment after overdosing on Benadryl. The hospital, Cook Children’s Hospital at Fort Worth, posted on its blog that the teens got the idea from a TikTok video that told them they could get high and hallucinate if they took several Benadryl pills. One girl took 14 of them and needed medical treatment.

The Fort Worth Star-Telegram and McClatchy News reached out to TikTok and were told that, yes, the company had removed content from the platform that was violating their community guidelines by encouraging people to take excessive amounts of Benadryl. So TikTok acknowledged the videos existed and has removed them.

Fast forward to the end of August. On August 28, Oklahoma City news outlet KFOR reported that a 15-year-old girl actually died from overdosing on Benadryl, ostensibly because she “fell victim to what’s been called the Benadryl Challenge on Tik Tok,” according to KFOR’s report. The story has bounced around several media sites now, including Newsweek and the Daily Mail.

The attribution for the cause of death comes from a Facebook post that has been subsequently deleted. The U.S. Sun and the New York Post identify the girl as Chloe Phillips, a sophomore at Blanchard High School, who died on August 21. The Facebook post apparently comes from her Great-Aunt Janette Sissy Leasure, who blamed the “Benadryl challenge.”

“This needs to stop taking our kids or putting them in the hospital,” she wrote.

KFOR’s reporting, however, leaves out any attribution and does not provide any actual comments from her family about the girl’s death. KFOR interviewed Scott Schaeffer, director of the Oklahoma Center for Poison and Drug Information, who explained to reporter Cassandra Sweetman how consuming large amounts of Benadryl can cause heart problems and seizures along with those hallucinations.

One might read Sweetman’s story and assume, then, that Schaeffer knew about what happened with Phillips and was doing his job informing the public. That assumption, however, would be incorrect. Schaeffer subsequently told Reason that he actually had no direct knowledge about the incident KFOR reported.

Furthermore, in an email, Schaeffer said, “[U]pon review of our records, [we] have found no cases that appear to have been inspired by the ‘Benadryl Challenge.'”

Sweetman has not responded to an email from Reason seeking attribution for the girl’s death and the circumstances behind it.

That there’s very little evidential attribution that a teen girl in Oklahoma actually died as a result of a TikTok video hasn’t stopped the story from going viral. And each story’s sole example of this “trend” points to the same overdoses of the teens in Fort Worth and videos that TikTok has already removed. (A company representative told Forbes they’re keeping an eye out for any new videos that might get posted.)

This is not a “trend.” It is, however, an easy way for media outlets to sow another round of panic and paranoia over social media and to convince stressed out parents that new technologies pose a danger to their kids.

While it’s true that there have been a small number of videos on TikTok encouraging Benadryl abuse, and that three teens in Texas decided to try it, there is very little evidence that a “Benadryl challenge” is something young people are doing (note the lack of actual links to TikTok videos in all this coverage), and so far, it’s unclear whether a teen in Oklahoma City actually died as a result of it.

What is true is that many, many media outlets have decided to use a deleted Facebook post as factual evidence of a widespread pandemic of teens deliberately attempting to overdose on allergy medication.

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Powell Says Jobs Report Was “Good” But Sees Low Rates “For Years”

Powell Says Jobs Report Was “Good” But Sees Low Rates “For Years”

Tyler Durden

Fri, 09/04/2020 – 16:37

In his first appearance since last week’s historic revision of the Fed’s mandate to one targeting higher inflation via an Average Inflation Targeting regime, Fed Chair Powell had some good and some not so good news about the economy. The former lawyer said that while the latest data on employment in the U.S. was “a good one”, he underscored that this is far from sufficient and repeated that the recovery has a long road ahead and that interest rates will remain low for a while, likely for “years.”

“Today’s jobs report was a good one,” Powell told National Public Radio in an interview Friday. “Through May and June, we got quite a few people back to work.” That of course is an understatement, considering that the unemployment rate plunged to 8.4% (as the economy added 1.4 million workers and nearly 3.8 million according to the Household survey) a number which is nearly 1% below the Fed’s own year-end unemployment projection of 9.3%.

And just to frontrun even stronger economic reports – because as of this moment the worst thing that can happen to the Fed is a full-blown recovery and a spike in inflation which would cripple the Fed’s credibility – in the weeks ahead of the election, Powell said that “the recovery will get harder from here.”

Of course, with AIT now firmly in place, no matter how low unemployment drops or how strong the recovery does get, the Fed will not hike rates and instead will justify ultra low rates – and thus no policy tightening – by simply noting that inflation has years to go before its returns to its hypothetical trendline of 2.0%, something the Fed has been unable to hit for years regardless. After all it is in the best interest of America’s middle class to see its purchasing power eroded as fast as possible.

And sure enough, Powell told NPR that he sees interest rates staying low for years: “We think that the economy’s going to need low interest rates, which support economic activity, for an extended period of time,” he said, adding that the period of low interest rates “will be measured in years.”

As a reminder, in the June meeting the Fed unanimously projected that the federal funds rate they target would remain near zero this year and next, with all but two FOMC members expecting rates to stay at that level in 2022 (even if the Fed kept its longer-run rate forecast at 2.5% although good luck with that).

Following its last meeting on July 28-29, the policy making Federal Open Market Committee said it expects to keep short-term interest rates pinned near zero “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price-stability goals.”

Separately, citing research from BofA, we noted that for the Fed to catch up to its AIT target, rates would need to stay ultra low for some 42 years.

Preceding Powell, a chorus of Fed members this week reiterated that they too were in no rush to build on the framework by providing more specific details on their interest-rate plans.

via ZeroHedge News https://ift.tt/331wC2K Tyler Durden

Be Skeptical of Stories About TikTok ‘Benadryl Challenge’ Overdoses

Benadryl_1161x653

A teen in Oklahoma City reportedly died in August of an overdose of Benadryl pills, and this tragedy is fueling yet another social media “challenge” panic. Are teens really trying to convince other teens to take tons of allergy pills to get high?

As with all of these social media panics that start bouncing around the web and local news networks, this story has kernels of truth to it while suggesting a trend that is probably exaggerated. Remember the “Tide Pod challenge?” Some teens did genuinely post videos of themselves eating Tide Pods, and there was a temporary increase in calls to poison control for laundry detergent ingestion. But the kind of national panic that led to involvement by fearmongering lawmakers was just completely over-the-top relative to the actual risks.

Similarly, the “Benadryl Challenge” starts with something real. Three teens in Texas in May sought medical treatment after overdosing on Benadryl. The hospital, Cook Children’s Hospital at Fort Worth, posted on their blog that the teens got the idea from a TikTok video that told them they could get high and hallucinate if they took several Benadryl pills. One girl took 14 of them and needed medical treatment.

The Fort Worth Star-Telegram and McClatchy News reached out to TikTok and were told that, yes, the company had removed content from the platform that was violating their community guidelines by encouraging people to take excessive amounts of Benadryl. So TikTok acknowledged the videos existed and has removed them.

Fast forward to the end of August. On August 28, Oklahoma City news outlet KFOR reported that a 15-year-old girl actually died from overdosing on Benadryl, ostensibly because she “fell victim to what’s been called the Benadryl Challenge on Tik Tok,” according to KFOR’s report. The story has bounced around several media sites now, including Newsweek and the U.K. Daily Mail.

The attribution for the cause of death comes from a Facebook post that has been subsequently deleted. The U.S. Sun and the New York Post identify the girl as Chloe Phillips, a sophomore at Blanchard High School, who died on August 21. The Facebook post apparently comes from her Great-Aunt Janette Sissy Leasure who blamed the “Benadryl Challenge”

“This needs to stop taking our kids or putting them in the hospital,” she wrote.

KFOR’s reporting, however, leaves out any attribution and does not provide any actual comments from her family about the girl’s death. KFOR interviewed Scott Schaeffer, director of the Oklahoma Center for Poison and Drug Information, who explained to reporter Cassandra Sweetman how consuming large amounts of Benadryl can cause heart problems and seizures along with those hallucinations.

One might read Sweetman’s story and assume, then, that Schaeffer knew about what happened with Phillips and was doing his job informing the public. That assumption, however, would be incorrect. Schaeffer subsequently told Reason that he actually had no direct knowledge about the incident KFOR reported.

Furthermore, in an email, Schaeffer said, “[U]pon review of our records, [we] have found no cases that appear to have been inspired by the ‘Benadryl Challenge.'”

Sweetman has not responded to an email from Reason seeking attribution for the girl’s death and the circumstances behind it.

That there’s very little evidential attribution that a teen girl in Oklahoma actually died as a result of a TikTok video hasn’t stopped the story from going viral. And each story’s sole example of this “trend” points to the same overdoses of the teens in Fort Worth and videos that TikTok has already removed. (A company representative told Forbes they’re keeping an eye out for any new videos that might get posted.)

This is not a “trend.” It is, however, an easy way for media outlets to sow another round of panic and paranoia over social media and to convince stressed out parents that social media platforms and new technologies pose a danger to their kids.

While it’s true that there have been a small number of videos on TikTok encouraging Benadryl abuse, and that three teens in Texas decided to try it, there is actually very little evidence that a “Benadryl Challenge” is something young people are doing (note the lack of actual links to TikTok videos in all this coverage) and so far, it’s unclear whether a teen in Oklahoma City actually died as a result of it.

What is true is that many, many media outlets have decided to use a deleted Facebook post as factual evidence of a widespread pandemic of teens deliberately attempting to overdose on allergy medication.

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Study Finds More School Arrests In Florida After the State Doubled The Number of Police in Schools

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In 2018, Florida schools saw a hiring surge for police officers. As a result, a new study says, the number of school arrests—which had been declining for years—suddenly started to rise. There was also a sharp increase in the use of physical restraint against students.

“The presence of law enforcement in schools was related to increases in the number of behavioral incidents reported to the state, the number of such incidents reported to law enforcement, and student arrests,” the report says. “The results suggest a need to reconsider whether law enforcement should be present in schools, and, if they are, how they can be implemented in a way that minimizes unnecessary exposure of students to law enforcement and arrests.”

The study was conducted by F. Chris Curran, director of the Education Policy Research Center at the University of Florida. It comes as school districts across the country, reponding to demands for policing reforms, are reconsidering the use of school resource officers (SROs).

Florida in particular has rapidly increased the number of police patrolling its school hallways in the last two years. After the 2018 mass shooting at a high school in Parkland, the state legislature passed a law requiring every K–12 school in the state to have a police officer or armed guardian. The law more than doubled the number of SROs in Florida schools. The majority of those new hires were assigned to elementary schools.

Florida has also been the site of several recent viral videos of small children being arrested. Last month, body camera footage emerged showing officers in Key West, Florida, trying and failing to handcuff an eight-year-old boy, whose wrists were too small for the cuffs. An Orlando SRO made headlines last September when he arrested a six-year-old girl. 

As Reason reported in June, civil liberties groups and disability advocates have been warning that the hiring surge has led to a disturbing number of arrests of children. The new study bears out at least some of their concerns. It found that the presence of SROs “predicted greater numbers of behavioral incidents being reported to law enforcement, particularly for less severe infractions and among middle schoolers.” While overall youth arrests in the state declined by 12 percent, the number of youth arrests at school increased 8 percent.

The study reported that police arrested elementary-aged children 345 times during the 2018–2019 school year. It also found four times as many incidents of physical restraint in 2018–2019 as there were in the previous year.

Groups like the American Civil Liberties Union (ACLU) and Southern Poverty Law Center (SPLC), have long contended that SROs contribute to the “school-to-prison pipeline” and lead to more arrests and harsher discipline, especially against minority students and students with disabilities. The study found that the increase in arrests was mostly attributable to increases in arrests of white students, while arrests of black students continued to decrease, though blacks are still disproportionately represented among student arrests.

The study’s conclusions broadly track with recent findings by researchers at the University of Maryland and the firm Westat, who studied several dozen middle and high schools in California and found that that increasing the number of SROs led to both immediate and persistent increases in the number of drug and weapon offenses and the number of suspensions and expulsions of students.

The SPLC and ACLU are calling on the state to repeal the 2018 law mandating SROs in every school.

“Florida is failing to meet the needs of its students,” Michelle Morton of the Florida ACLU said in a press release. “The security measures implemented by our state due to the fear of mass shootings have created school environments that are not conducive to learning.”

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