Mike Godwin, the Creator of Godwin’s Law, Is Suing Trump Over His TikTok Executive Order

xnaphotostwo262658

Social media and China: two beloved scapegoats of the current administration. But the president might be foiled in his latest attempts to bully a tech company—in this case, TikTok—into banishment and use executive power to put U.S. TikTok employees out of jobs. TikTok is fighting, and so is famed constitutional lawyer Mike Godwin.

On Monday, the same day TikTok announced that it’s suing the Trump administration over attempts to ban the popular video app, Godwin also filed a lawsuit challenging President Donald Trump’s recent executive order on TikTok and the messaging app WeChat.

Godwin—perhaps best known as the creator of Godwin’s Law, the early internet axiom that “as an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches 1″—and the Blackstone Law Group are representing TikTok employee Patrick S. Ryan. Their suit—filed against Trump and Secretary of Commerce Wilbur Ross in the U.S. District Court for the Northern District of California—was brought “to prevent the implementation of the President’s August 6, 2020 Executive Order purporting to ban all ‘transactions’ with TikTok, to the extent that order would prevent TikTok from paying its U.S. employees their wages and salaries when the order takes effect on September 21,” the complaint states.

Trump’s “sweepingly broad” order nixes “any transaction” between a business or person subject to U.S. laws and TikTok parent company ByteDance Ltd., notes the suit. That includes transactions involving its U.S. subsidiary, TikTok Inc., which was legally incorporated here and employs around 1,500 people in the U.S.

Trump’s stated rationale for the order was that TikTok is owned by a Chinese company and therefore is supposedly beholden to the demands of the Chinese Communist Party. But while ByteDance started in China, it’s now based out of the Cayman Islands. And subsidiary TikTok Inc.’s headquarters are in Culver City, California, with servers in Virginia.

“TikTok is neither owned, operated, nor controlled by China or the Chinese government. Indeed, TikTok does not even operate in China,” the lawsuit states.

“A lot of the things that people were saying on what to worry about with TikTok was crazy,” Godwin tells Reason.

“There’s nothing unique about TikTok and there are plenty of other apps that gather” the same sort of user information, he says, challenging the idea the data TikTok users give it is particularly threatening to their privacy. “What’s the blackmail model for TikTok? Your dance moves? No matter how bad they are, they’re not that bad!”

When he would ask TikTok critics about what the actual “threat model” is, many “would look at me like ‘isn’t it obvious?'” says Godwin. “They would get upset—’why am I even raising these questions about whether the Chinese are somehow using TikTok in a bad way? Of course they are!'”

“So that was troubling,” Godwin adds. “I know what moral panics look like; they look kind of like this.”

Now, U.S. workers of TikTok are now caught up in the crosshairs.

ByteDance may be able to sell TikTok Inc.—both Microsoft and Oracle have been interested. But that offers no protection or solace for the company’s workers here, Godwin points out. “If TikTok gets sold to Microsoft or Oracle, that’s no guarantee now that [current employees are] going to have a job” or that they want to work for these companies.

“The 1,500 TikTok employees working in the U.S.—as well as their families—need to know whether they will be paid next month,” states the lawsuit. “These employees include U.S. citizens that have families to feed, rents and mortgages to pay, and health care to manage. In addition, many TikTok employees working in the United States are here on H1B Visas, which require that their employer sponsor their visa status. These workers, lawfully present in the United States and acting in reliance on their employment relationship with TikTok, as well as in reliance on the U.S. government’s H1B visa process, face having to leave the U.S . immediately—or risk deportation—if their employment status is constructively terminated by the effect of the Executive Order.”

“We realized the employees had a sort of analytically distinct set of complaints they could make against the government,” Godwin says. In this case, employees have a situation where “the company contracted with you to make you an employee, but now the government is reaching in to destroy that contract.”

“Nothing illegal has happened,” says Godwin. “What you have are these very speculative harms, there’s no actual evidence that anybody’s using TikTok data in any way that would trouble a parent, much less, you know, the U.S. government.”

“You just get this sense that [Trump is] cruising around for something that he could do to show that he can punish a social media platform,” he adds.

Trump’s executive order contains a lot of speculation about how TikTok could be dangerous. Yet it relies entirely on the idea that apps with any ties to China could—in some yet to be determined way—become a national security threat.

It’s “like the notion of pre-crime in [the film] Minority Report,” says Godwin.

Yet unlike the president’s earlier order concerning Twitter and Section 230, the order against TikTok and WeChat actually has teeth, Godwin notes. In fact, “it’s all teeth.” And yet “you can’t actually look at it and determine how you could avoid being punished by it.”

In terms of the suit’s success, the president’s invocation of “national security” is a hurdle.

“A number of national security law professors and lawyers are pretty certain that no foreign-owned company can really resist the superpowers the president has … regarding foreign investment and divestments and so on. But I think they’re wrong!” says Godwin. “They’ve gotten used to thinking of a ‘national security’ claim” by the president “as being like a royal flush—the highest possible hand that no other hand can beat—but I think it’s like a full house. It’s a really good hand, but there are some other hands that can beat a full house.”

The hand they’re playing is “individual rights,” Godwin says. And he thinks that just might prevail, if they can “get this order in front of a judge, and create a narrative and a throughline that allows a court to realize how bad it is.”

You can read their full complaint here.

from Latest – Reason.com https://ift.tt/3gq834y
via IFTTT

Wisconsin Governor Sending National Guard To Kenosha

Wisconsin Governor Sending National Guard To Kenosha

Tyler Durden

Mon, 08/24/2020 – 17:49

Authored by Zachary Stieber via The Epoch Times,

National Guard members are rushing to Kenosha to help patrol city streets in the wake of rioting overnight Sunday.

Wisconsin Gov. Tony Evers announced that 125 members will be in the city by Monday night “to help protect critical infrastructure and assist in maintaining public safety and the ability of individuals to peacefully protest.”

Evers, a Democrat, said the “limited mobilization” was ordered based on requests from local officials.

National Guard members will be focused “on supporting the needs of local first responders to protect critical infrastructure, such as utilities and fire stations, and to ensure Kenoshians are able to assemble safely,” he added in a statement released by his office.

Maj. Gen. Paul Knapp, Wisconsin’s adjutant general, said soldiers and airmen are prepared to help preserve public safety.

A group of Black Lives Matter protesters hold a rally on the steps of the Kenosha County Courthouse, which was closed because of damage inflicted by rioters just hours earlier, in Kenosha, Wis., on Aug. 24, 2020. (Morry Gash/AP Photo)

In a separate video announcement, Evers urged people gathering to protest to remain peaceful and wear masks because of the COVID-19 pandemic.

Chaos erupted in Kenosha, a town of some 100,000 on Lake Michigan south of Milwaukee, late Sunday after police officers shot Jacob Blake while responding to a 911 call.

Rioters smash windows at the Kenosha County Administration Building during unrest following the police shooting of Jacob Blake in Kenosha, Wis., on Aug. 23, 2020. (Mike De Sisti/Milwaukee Journal Sentinel via USA TODAY via Reuters)

Rioters burned a number of businesses and looted others.

Law enforcement officers in riot gear were seen Monday protecting buildings from further harm.

Kenosha County officials said both the courthouse and a nearby administration building would be closed for at least one day because of damage inflicted by rioters.

The county later declared a statement of emergency and said a curfew will begin at 8 p.m. and run through 7 a.m. Tuesday, east of I-94.

“The public needs to be off the streets for their safety,” officials said in a press release.

A protestor shines a flashlight in the direction of Kenosha County Sheriffs Deputies outside the Kenosha Police Department in Kenosha, Wis., late Aug. 23, 2020. (Mike De Sisti/Milwaukee Journal Sentinel via USA TODAY via Reuters)

Democrats immediately condemned the shooting even though the video clip that circulated widely online was just 19 seconds.

“This was not an accident. This wasn’t bad police work. This felt like some sort of vendetta being taken out on a member of our community,” Lt. Gov. Mandela Barnes, a Democrat, said during a virtual briefing. He claimed that Blake was “trying to de-escalate” the situation.

“Yet another Black American is a victim of excessive force,” Democratic presidential nominee Joe Biden said in a statement.

Garbage and dump trucks were set ablaze by rioters near the Kenosha County Courthouse where they had been set up to prevent damage to the building, in Kenosha, Wis., on Aug. 23, 2020. (Sean Krajacic/Kenosha News via AP)

Republican President Donald Trump was being briefed before noon on the matter, the White House said.

Other officials asked the public to wait until an investigation is finished into the shooting.

“I support a full and thorough investigation into the events leading up to yesterday’s officer-involved shooting in Kenosha,” Sen. Ron Johnson (R-Wis.) said in a statement. “While emotions are understandably running high in the Kenosha community and elsewhere, I urge any demonstrators to remain peaceful and give our justice system the opportunity to work.”

Burned out vehicles are seen in Kenosha, Wis., Aug. 24, 2020. Many of the cars were set on fire during protests Sunday night after a police shooting in the city. (Morry Gash/AP Photo)

“Until that investigation is completed, we ask that you withhold prejudgment about the incident and please let the process take place,” Pete Deates, president of the Kenosha Professional Police Association, a police union, said in a statement to news outlets.

“As always, the video currently circulating does not capture all the intricacies of a highly dynamic incident,” he added.

Pemonstrators march in protest of last night’s police shooting, in Kenosha, Wis., on Aug. 24, 2020. (Scott Olson/Getty Images)

The video shows two officers following Blake as the man reached into a vehicle before being shot.

In a brief statement, the Kenosha Police Department said officers were responding to a domestic incident.

After the shooting, officers provided immediate aid to Blake and he was taken via Flight for Life to a hospital in Milwaukee, the police said. Blake was in serious condition.

The Wisconsin Department of Justice’s Division of Criminal Investigation is investigating the officer-involved shooting, with help from the Wisconsin State Patrol and the Kenosha County Sheriff’s Office.

The officers involved were placed on administrative leave.

According to court records, Blake had an arrest warrant issued last month for trespassing, third-degree sexual assault, and disorderly conduct.

Evers on Monday also signed an executive order convening a special session of the state legislature on policing accountability and transparency.

Jake Loewen is seen cleaning up through a broken window at the Harborside Academy in Kenosha, Wis., on Aug. 24, 2020. (Morry Gash/AP Photo)

Bills he wants to be passed would establish statewide use of force standards for all law enforcement agencies, create a $1 million grant program to fund community organizations, and prohibit no-knock warrants.

Evers is upset that the legislature has so far refused to take up legislation dealing with the issues despite his urging.

“This is not the time for politics. I am urging Republican leadership to rise to this important moment in history, to put people before politics, and to put lives of black Wisconsinites above politics,” Evers said at the virtual briefing.

Windows are boarded up at a school near the Kenosha County Courthouse in Kenosha, Wis., on Aug. 24, 2020. (Scott Olson/Getty Images)

Wisconsin Assembly Speaker Robin Vos, a Republican, said in response that he spoke to Evers earlier in the day by phone and requested he work with lawmakers through a task force on racial disparities that Vos formed on Monday.

“We have an opportunity to bring people together to find solutions. Instead, the governor is choosing to turn to politics again by dictating liberal policies that will only deepen the divisions in our state,” he said in a statement.

But some lawmakers signaled support for Evers’ move. “The time for change is now,” Senate Minority Leader Janet Bewley, a Democrat, said in a tweet.

via ZeroHedge News https://ift.tt/3jfmA4R Tyler Durden

Daily Briefing – August 24, 2020

Daily Briefing – August 24, 2020


Tyler Durden

Mon, 08/24/2020 – 17:41

Real Vision senior editor Ash Bennington hosts managing editor Ed Harrison to make sense of a series of financial news stories — from the so-called “K-shaped” recovery to the struggles American college towns are facing to Facebook CEO Mark Zuckerberg’s ringing the alarm bell on TikTok. They also evaluate Tesla’s meteoric rise, looking at comments made by Joel Greenblatt, a legendary investor as well as a Real Vision guest, that he “can’t explain it.” Lastly, Ed and Ash scrutinize the rise of “investing gurus” on social media platforms. In the intro, Jack takes another look at the U.S. housing market.

via ZeroHedge News https://ift.tt/2FV4Ptd Tyler Durden

“The General Public Gets It”: Sheila Bair Blasts Fed For Creating Income Inequality, Slams Politicians For Keeping Silent

“The General Public Gets It”: Sheila Bair Blasts Fed For Creating Income Inequality, Slams Politicians For Keeping Silent

Tyler Durden

Mon, 08/24/2020 – 17:25

Since its inception, this website has preached that at the root of all evil in US – and frankly any other society which prints its own currency – is the central bank. Month after month, year after year, we have warned that the Fed, which Thomas Jefferson among the founding fathers prophetically warned against in a warning that carried all the way until 1913 when, following a secret meeting at the aptly named Jekyll Island, the Fed was sprung into existence, just in time for the first World War.

And while superficially the charter of the Fed – which to this day remains a fully private institution unlike most of its peers

Source: Based on de Kock (1965), Rossouw (2018) and information from central banks’ websites

… has operated under the superficially noble mandate to “promote effectively the goals of maximum employment, stable prices, and moderate long term interest rates”, yet by constantly prompting a inflationary mandate and debasing the dollar, has spawned a series of boom-bust cycles, which have resulted in an unprecedented wealth (and income) divide, with a handful of people owning the vast majority of financial assets, while the rest of the population – including the vast majority of the middle class – has seen its purchasing power decline year after year.

Yet despite, or perhaps due to the Fed’s bubble-blowing powers which have now culminated in the Fed effectively nationalizing the bond market and going so far as purchasing corporate bonds from such companies as Apple, Berkshire Hathaway and Intel (implicitly funding their shareholder friendly actions), and terminally breaking price discovery in the process, few among the establishment – either financial or political – have ever dared to join our crusade against central banks.

Which is why we were pleasantly surprised when over the weekend, none other than Sheila Bair broke ranks with the establishment, when in a serious of tweets the former bank regulator dared to say the unspeakable: the truth about the Fed, and that it’s policy of “sustained low interest rates help the big get bigger, stifling innovation and productivity, while inflating the value of financial assets overwhelming owned by the rich.”

Bair started off innocently enough, commenting on a recent Princeton research paper, which came to the “shocking” conclusion that low rates are deflationary (i.e., “aggregate productivity growth declines as the interest rate approaches zero”), something we first pointed out months ago…

… when she said that she is “all for robust antitrust enforcement. Markets don’t work without competition. Yet, overlooked is the role of low interest rates in driving market concentration.”

And not just “concentration” – which can readily be seen in the handful of megatech stocks such as Apple, Amazon, Google and Microsoft whose market caps are on either side of $2 trillion – but as Bair warns, the Fed’s actions have led to such “side effects” as “yawning wealth and income inequality, sustained low interest rates help the big get bigger, stifling innovation and productivity, while inflating the value of financial assets overwhelming owned by the rich.”

And in a stunning follow up which exposes just how deep the institutional rot has spread, her next tweets hits right at the $64 trillion question: “no one in either party talks about this.” In fact, “if there is bipartisan consensus on anything, it is to rely more, not less, on cheap debt to fuel economic growth.”

The piece de resistance was her final tweet, in which Bair dared to call out the naked emperor, and asked – why, in a world where even “the general public gets it”, is our political leadership so “unwilling to fundamentally rethink the role of monetary policy in our economy.

While Bair doesn’t follow up on her own rhetorical observation, we are happy to do so: the reason our “political leadership” refuses to address the fundamental driver of inequality in the US, the bubble-blowing machine behind the stock market, and the primary driver for growing class, ethnic and race hatred within the country’s population, is because US political ceased to matter long ago. In fact, one can argue that both parties only exist to stoke even greater polarization within society which serves as a convenient smokescreen to deflect attention from the true source of most things that are rotten in US society: the Federal Reserve. Meanwhile, the Fed’s money printing merely enables the existing flawed system to get even more entrenched, with consequences which have led to a nation that is on the tipping point – and in some cases beyond – armed violence with itself.

And unfortunately, since there is nothing that will force this “political leadership” to take any measures to fundamentally restructure the role monetary policy plays in our economy, the greatest catastrophe in US history awaits.

via ZeroHedge News https://ift.tt/3j7rOj1 Tyler Durden

Illinois Worsens Retirement Home Deaths Fiasco With More Failed Executive Orders

Illinois Worsens Retirement Home Deaths Fiasco With More Failed Executive Orders

Tyler Durden

Mon, 08/24/2020 – 17:05

Authored by Ted Dabrowski and John Klingner via Wirepoints.org,

The failure to protect retirement home residents from COVID-19 is one the biggest failures of Gov. J.B. Pritzker administration’s handling of the pandemic. Questions have been raised repeatedly by Wirepoints and others on whether more could have been done. More than 55 percent of the state’s nearly 7,900 COVID-19 deaths have been tied to nursing homes.

Now, reporting by the Chicago Reader and the Chicago Tribune raise other questions as to how and why the Illinois Department of Health (IDPH) handled retirement homes the way it did. At issue are several executive orders issued by Pritzker early on – and renewed as the pandemic worsened – that suspended several core tasks of IDPH. The result of those orders left hundreds of complaints of neglect and abuse uninvestigated for over three months.

Retirement homes have been at the heart of Illinois’s COVID-19 outbreak from the start. In many counties across the state, the majority of deaths reported have come from Long-Term Care facilities. Total COVID-19 deaths by county, and the percentage of those deaths coming from retirement homes are shown in the graphic.

Last month, the Chicago Reader wrote a detailed article on the administration’s handling of COVID-19. The Reader questioned Pritzker’s use of executive orders to suspend the IDPH’s enforcement of health regulations for the sector. It also criticized Pritzker’s grant of broad immunity to facility operators for potential negligence in the middle of the pandemic.

Unfortunately, the Reader article received little attention.

The article appeared shortly after two IDPH directors responsible for regulating retirement homes were replaced. But the apparent reason why the two directors were let go remained unclear – until now. While there is still no official response from the administration, the Chicago Tribune has uncovered a pretty solid reason for the firing.

The paper wrote last week that IDPH failed residents by neglecting their core task of investigating abuse “for nearly 3½ months during the coronavirus pandemic.”

“A health department spokeswoman said top administrators discovered July 8 that agency personnel had not investigated any of the abuse or neglect complaints it had received from mid-March until June 22 as required by state law. The most serious complaints require an investigation to begin within 24 hours, next-worst within seven days and least serious within 30 days.”

So, not only did the state fail to effectively protect retirement home residents from COVID, but in its rush to manage the situation it failed to protect them from neglect and abuse as well.

It’s no wonder then, that the IDPH has resorted to damage control, announcing that an outside firm will conduct a “a top-to-bottom review” of agency procedures and that a former federal prosecutor will examine several of the departments’ investigations.” Notably both will be focused on “recommending best practices” and “improving existing procedures.” Nothing has been said about holding anyone responsible for what happened.

It’s baffling that Pritzker would use executive orders to relax oversight of nursing homes during the worst part of the pandemic. It runs completely contrary to his other executive orders that led to one of the strictest lockdowns in the country.

Keep an eye on this as the story develops.

via ZeroHedge News https://ift.tt/2Ew4fBu Tyler Durden

Kamala Harris Furiously Backpedals Over Eliminating Private Health Insurance

Kamala Harris Furiously Backpedals Over Eliminating Private Health Insurance

Tyler Durden

Mon, 08/24/2020 – 16:45

Sen. Kamala Harris (D-CA) slick-talked her way around the topic of eliminating private health insurance, after she received gentle pushback from ABC News‘ David Muir over her false claim that she doesn’t want to eliminate private health insurance.

“I ask you this because you have pressure from the Left, you have pressure from the center, you’re trying to appeal to Republicans, and so on sort of the evolution on the issues when you talk about health care that you see eye to eye—do you see a day where private insurance would go away as you once proposed?” asked Muir.

No,” Harris claimed, despite her public record of supporting the elimination of private healthcare.

“And in fact that my plan, when I was running, was that we would not eliminate private insurance,” she continued – adding “And Joe and I –“

Even though you signed on for Medicare for All?” Muir interjected – to which Harris performed a whiplash-inducing pivot.

“I signed on to that. I signed on to a number of bills that were about great ideas to fix the problem,” she replied. “I want to fix the problem. And Joe has a plan to fix the problem, and I’m fully supportive of it.”

Watch:

The Daily Wire‘s Ryan Saavedra notes Harris’s very public stance on eliminating private health insurance – which she’s casually discarded heading into the 2020 election (emphasis ours):

*  *  *

Harris was “the first Democrat to announce she’ll co-sponsor Sen. Bernie Sanders’ single-payer health care bill when it’s introduced in September,” CNN reported in 2017.

The New York Times reported in March 2019:

At the heart of the “Medicare for all” proposals championed by Senator Bernie Sanders and many Democrats is a revolutionary idea: Abolish private health insurance. …

But doing away with an entire industry would also be profoundly disruptive. The private health insurance business employs at least a half a million people, covers about 250 million Americans, and generates roughly a trillion dollars in revenues. Its companies’ stocks are a staple of the mutual funds that make up millions of Americans’ retirement savings. …

Senators Cory Booker of New Jersey, Kirsten Gillibrand of New York, Kamala Harris of California, and Elizabeth Warren of Massachusetts co-sponsored Mr. Sanders’s bill in the last Congress. …

The concept, in broad strokes, appeals to many Democratic voters. But overall support diminishes by a third or more when people are told that the plan would involve eliminating private insurance, raising taxes, or requiring waits to obtain medical care, according to surveys from the Kaiser Family Foundation.

During a debate in June 2019, the candidates were asked “Who here would abolish [employer-provided] health insurance in favor of a government-run plan?” Harris raised her hand, but then tried to walk it back the next day.

In an 2019 NBC News report titled, “Kamala Harris wants to end private health insurance, a new Democratic litmus test,” NBC News highlighted remarks that Harris made during a town hall event.

“The idea is that everyone gets access to medical care, and you don’t have to go through the process of going through an insurance company, having them give you approval, going through the paperwork, all of the delay that may require,” Harris said. “Let’s eliminate all of that. Let’s move on.

The next day, Harris again tried to walk back her remarks after facing backlash from other Democrats who said that they did not support it.

*  *  *

In short, they’re trying to play both sides – and the left has begun to notice.

via ZeroHedge News https://ift.tt/31q7jbm Tyler Durden

Confessions Of A Reluctant Gold Investor

Confessions Of A Reluctant Gold Investor

Tyler Durden

Mon, 08/24/2020 – 16:25

Authored by Michael Maharrey via SchiffGold.com,

Vitaliy Katsenelson serves as the chief investment officer at Investment Management Associates in Denver. In an article he wrote for MarketWatch, he admits his company has resisted buying gold in the past.

But the company is buying gold now.

Why?

In a nutshell – currency debasement.

Gold hedges our clients against two scenarios: a weaker US dollar and the debasement of all currencies (the dollar declines and so do other currencies). Dollar outflows will be looking for homes. Some money will flow into euros, British pounds, and Swiss francs, and some into gold — an incorruptible asset class (central banks and politicians cannot create more gold).”

Katsenelson wrote that in the past, his rationale for not owning gold was that he’d rather own “good companies.” This is very similar to the strategy Warren Buffet has always advised to avoid inflation, as Peter Schiff explained in a recent podcast.

Warren Buffett has never been advocating that anybody buy a gold stock. In fact, when he’s been asked about gold, he’s kind of dismissed it as a non-producing asset, and he’s always been saying, ‘Look, if you’re worried about inflation, just buy equities, buy businesses.’ … That’s probably true when the inflation is manageable, when it’s small, maybe a few percent a year. But when you’re about to have massive inflation, a much higher degree of inflation, that’s what I think causes Warren Buffett to decide that now it’s time to hedge the old-fashioned way. I can’t just buy businesses, especially when they’re overpriced. I’ve got to buy gold businesses. I’ve got to get into physical gold.

Katsenelson said his company will continue to invest in “good companies,” but it will also add gold as “an unloved hedge.”

Meanwhile, the US will have its challenges and will adapt to them. As investors, we will adapt as well — we just like to be early.”

I’m not sure I would call getting into gold now “early.” But I suppose from a mainstream perspective, it might be.

Katsenelson spends the bulk of his column space talking about problems with the dollar. As the reserve currency, the greenback has enjoyed a privileged position. But as Katsenelson put it, being the envy of the world changes your behavior.

 You start believing that you are very special for reasons that are not grounded in reality. You start believing that bad things happen only to other people and nations because they are not as special as you. You can do anything you want — borrow and spend as much as you like — and nothing bad will happen to you. This behavior in turn starts to undermine the core reasons why people trusted your country and currency to begin with. This is what is now happening to the US.

Debt to GDP will likely exceed 120% this year and could even eclipse 130%. It’s easy to blame COVID-19 for the surge in debt. It has certainly exacerbated the problem. But the federal government was on pace for a $1 trillion-plus deficit this year even before the pandemic. As Katenelson put it, “The US has run huge budget deficits in bad times and in good, long before the virus.”

Katsenelson said it’s unlikely the US would outright default on its debt. Instead, it will “honor” its obligations via “massive money printing.”

“Which could bring massive inflation and tank the US dollar (who wants to own a currency that buys less and less?). God help you if you reached for yield and loaded up on long-term bonds (a trade that minted money for the past 30 years). Long-term bonds will be widow-makers in this scenario.”

As a result, Katsenelson says he believes the “strength the dollar has experienced over the past decade will likely fade.”

The dollar’s decline may bring higher prices, higher inflation (we are a net importer), and higher interest rates (the Fed will try to squash interest rates, until it cannot). In my firm’s portfolios we are already partially positioned for this shift by owning foreign stocks — a weaker dollar means foreign company earnings will go up in the US dollar terms. But there is another asset we’re buying — gold.

Peter Schiff has been talking about this scenario for years. Now even reluctant gold investors are starting to see the writing on the wall.

via ZeroHedge News https://ift.tt/3aV5GVX Tyler Durden

AAPLocalypse Now? Nasdaq & S&P Hit Record Highs, Bonds & Bullion Slide

AAPLocalypse Now? Nasdaq & S&P Hit Record Highs, Bonds & Bullion Slide

Tyler Durden

Mon, 08/24/2020 – 15:59

As the anticipated splits of AAPL and TSLA loom, both stocks hit new record highs today (before dumping and pumping.,, and dumping)…

AAPL hit a new record high at $515 today…

TSLA hit a new record high at $2129 today (but ended red ahead of its 4-for-1 split tonight)…

All of which was echoed in the major indices (after their overnight exuberance on COVID treatments faded at the open) which were extremely noisy intraday… Nasdaq lagged but The Dow led…

Energy stocks outperformed today.

“I love the smell of stock splits in the morning”…

But this is what many are starting to get concerned about. Breadth is ugly…

Source: Bloomberg

And the correlation between breadth and the market has collapsed…

Source: Bloomberg

Growth and Value stocks were both bid at the open but growth was sold all day from there…

Source: Bloomberg

Major shift in Value and Momentum today with the latter getting spanked…

Source: Bloomberg

Treasury yields traded in a very narrow range today but ended marginally higher…

Source: Bloomberg

 

 

Source: Bloomberg

 

 

 

Source: Bloomberg

The Dollar ended higher on the day, whipsawed once again today around the European close…

Source: Bloomberg

Cryptos managed modest gains from Friday’s close…

Source: Bloomberg

Gold and Silver surged in early trading before being clubbed like a baby seal (copper and crude managed very modest gains)…

Source: Bloomberg

The gold monkeyhammering began right at the London Fix, back below $1950…

Silver also slammed back below $27…

Given the potential impact of the double-whammy of storms looming over Gulf oil production, WTI ended only marginally higher…

And finally, if you thought AAPL was having a good year, Lumber is killing it…

Source: Bloomberg

And gold appears to be shrugging off the renewed pressure lower (a positive for gold) in real yields…

Source: Bloomberg

Time’s Up?

Source: Bloomberg

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

More in the Saga of the Escaped Cat, Here Meowing About “a Russian/Israeli Oligarch”

In today’s decision by Judge Ronnie Abrams (S.D.N.Y.) in Rollag v. Cowen Inc., plaintiff sued defendants on July 6, 2020 for violations of the Family and Medical Leave Act and related state and local laws; the case also involves (with some procedural twists too tedious to relate) a Sarbanes-Oxley Act retaliation claim and an OSHA claim:

The Complaint includes factual allegations that appear to relate to his anticipated Sarbanes-Oxley Act claim—namely, that Defendants retaliated against him after he repeatedly expressed concerns regarding Defendants’ solicitation of investments from an entity tied to Vitaly Malkin, whom Plaintiff describes as “a Russian/Israeli oligarch banned from Canada for 19 years, and reputed to be engaged in money laundering and arms dealing (among other ventures).”

Here’s the opening paragraph of the Complaint:

When Kevin Rollag, a former Director at Cowen, discovered that the new potential investor on a deal he was working on was Vitaly Malkin, a Russian/Israeli oligarch banned from Canada for 19 years, and reputed to be engaged in money laundering and arms dealing (among other ventures), he did not think the Bank could seriously consider allowing his participation.

This got a good deal of press attention:

On the day that Plaintiff filed his complaint, the legal news website Law360 ran an article entitled, “Banker Says Cowen Fired Him For Objecting To Oligarch,” describing both the OSHA complaint and this lawsuit. On July 8 or 9, 2020, Plaintiff’s counsel issued a press release entitled, “Lawsuit: Cowen Fired Top Investment Banker Who Raised Concerns About the Bank’s Business Ties to Russian Oligarch.” The press release also discussed the claims in both the OSHA complaint and this action and linked to both complaints. On July 9, 2020, the website Cash Crop Today published the full text of the press release.

But then, at the end of July, defendants tried to get the Complaint sealed:

On July 30, 2020, Defendants filed a motion to compel arbitration and stay this action. On July 31, 2020, Defendants filed a letter motion to seal the Complaint or, alternatively, to strike the Complaint and order Plaintiff to file a replacement thereof that substitutes pseudonyms for the names of Cowen’s clients, employees, and potential investors. Defendants contend:

“In connection with his employment with Cowen, Plaintiff entered into … confidentiality and non-disparagement [agreements] that prohibit Plaintiff from disclosing non-public confidential or proprietary information about Cowen’s employees, business, and clients, and from disparaging and defaming Cowen and its employees, both during and after the termination of Plaintiff’s employment. In direct  contravention of those agreements, Plaintiff chose to file this court action, containing false and inflammatory allegations that disparage Cowen, its employees, and certain current and potential clients and investors, and then engaged in a publicity campaign to generate press attention.”

Defendants maintain that Plaintiff’s “blatant falsehoods and accusations have nothing to do with Plaintiff’s actual asserted legal claims in his Complaint for discrimination and alleged wrongful termination related to his purported FMLA leave and parental status.” … [They] maintain that if the Court declines to order sealing or direct Plaintiff to file a complaint that uses pseudonyms, “it will encourage Plaintiff’s counsel and others to file complaints with salacious, irrelevant allegations in matters that can only proceed in arbitration, and to do so for the in terrorem value in extracting a settlement.” Defendants’ reply provides no explanation as to why Defendants waited until July 31, 2020 to file the motion to seal.

“The common law right of public access to judicial documents is firmly rooted in our nation’s history.” “In addition to the common law right of access, it is well established that the public and the press have a ‘qualified First Amendment right to attend judicial proceedings and to access certain judicial documents.'” … “A sealed complaint leaves the public unaware that a claim has been leveled and that state power has been invoked—and public resources spent—in an effort to resolve the dispute. These considerations indicate that public access to the complaint and other pleadings has a ‘significant positive role,’ in the functioning of the judicial process.”

“A proponent of sealing may overcome the presumption of access by demonstrating a substantial probability of harm to a compelling interest.” “[A] judge must carefully and skeptically review sealing requests to [e]nsure that there really is an extraordinary circumstance or compelling need.” “‘Generalized concern[s] of adverse publicity’ do not outweigh the presumption of access.” …

“… [W]here … a party fails to take immediate steps to request that publicly filed materials be sealed, its request to redact or seal may be denied for that reason.” … Defendants provide no justification for why they waited until July 31, 2020 to file their motion to seal—three and a half weeks after Plaintiff filed his Complaint, and over a month after Plaintiff alleges his attorney sent a draft thereof to Cowen. In fact, Defendants were put on notice of Plaintiff’s factual allegations and legal claims as early as June 12, 2020, when Plaintiff contends he sent Defendants a “detailed letter.” … Defendants’ “failure to act promptly plainly belies any … claim of harm.” The Court thus holds that Defendants have failed to overcome the presumption of public access.

This conclusion is reinforced by that fact that, “[b]y the time Defendants filed [this] motion[], news outlets had already reported on the allegations in the Complaint.” Courts in this Circuit have found that a defendant’s “countervailing privacy interest … cannot defeat the strong presumption of public disclosure where the material it seeks to seal is already in the public domain” due to media coverage. As the Second Circuit has noted, once “the genie is out of the bottle,” courts “have not the means to put the genie back.” In light of the existing press coverage of the Complaint, the Court concludes that sealing would be futile at this stage.

Finally, the Court notes that to the extent that Defendants maintain that Plaintiff breached confidentiality and non-disparagement contracts or engaged in unlawful defamation, they are free to bring suit against Plaintiff on those grounds in the appropriate forum….

from Latest – Reason.com https://ift.tt/31uH3wB
via IFTTT

Classes Today: “Enumerated Power I” and “Introduction to the Sales Contract”

Here are the videos from my class today. I finally figured out why there is a hissing sound in the background. The feedback will be fixed for classes on Wednesday. The problem was my lavalier microphone. The connection between the mic and my phone was loose. That loose connection created the hissing sound. I am also using a new lighting ring, which helps eliminate shadows.

Class 3: Enumerated Powers I – The Chase Court and the Progressive Courts (8/24/20)

  • The Chase Court
    • United States v. Dewitt (181-182)
    • Hepburn v. Griswold (183-186)
    • Altering the size of the Supreme Court (187-188)
  • The Progressive Era
    • United States v. E.C. Knight Co. (201-207)
    • Champion v. Ames (207-213)
    • Hammer v. Dagenhart (214-218)

Class 3: Introduction to the Sales Contract (8/24/20)

  • Introduction to buying and selling real estate, 553-554
  • Sample Contract, 554-567 (Skim)
  • The Statute of Frauds, 569-570
  • Hickey v. Green, 571-575
  • Marketable Title: Lohmeyer v. Bower, 576-581

 

from Latest – Reason.com https://ift.tt/3gkvtbq
via IFTTT