“The Common Objects of their Love”

In his inaugural address this past January, President Biden quoted, of all people, the Fifth-Century Christian saint, Augustine of Hippo. In City of God, Augustine famously defined a “people”–what we would today think of as a political society–as “an assemblage of reasonable beings bound together by a common agreement as to the objects of their love.” President Biden paraphrased that definition to make a point about Americans today:

Many centuries ago, Saint Augustine, a saint of my church, wrote that a people was a multitude defined by the common objects of their love.

What are the common objects we love that define us as Americans?

I think I know.

Opportunity.

Security.

Liberty.

Dignity.

Respect.

Honor.

And, yes, the truth.

I have been puzzling over this appropriation of Augustine. Let’s leave aside the switch of “reasonable beings,” which for some reason discomfited the speechwriters, to “a multitude.” In what sense are Americans today united by common objects of affection? The president listed several values he believes we share–several things that all of us love, as Americans. But one doesn’t have to probe too deeply to see that, even if we share some abstract commitment to these values, Americans do not agree on what they entail in any particular context. Everything, it seems, has become partisan; even a pandemic has failed to bring us together. President Biden was no doubt trying to bridge our divisions, which is understandable and an old tradition in inaugural addresses. But it’s hard to see how his words reflect our present reality.

My colleague Marc DeGirolami and I discuss all this, as well as other aspects of City of God, in our most recent episode of Legal Spirits, our podcast series on issues in law and religion. You can listen to the episode here.

 

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UCLA Students Are Claiming That Automatic Soap Dispensers Are Racist

UCLA Students Are Claiming That Automatic Soap Dispensers Are Racist

In case you’re looking for further proof that the “woke” world has gone to hell in a handbasket, look no further than a University of California, Los Angeles op-ed. 

The op-ed, penned by Sullivan Israel, shares that some UCLA students are claiming that automatic soap dispensers – yes, the things you find in restrooms that dole out soap without having to be touched – are racist. 

The basis for the claim is a student who says the dispensers “don’t see her hands” because of the color of her skin, The Blaze reported.

A second student said that the dispensers force “black and brown bodies” to show their palms — which are “the only light areas of the skin”. 

Israel’s op-ed deftly debunked the idiotic notion, calling the idea that “systemic racism and white supremacy is all around us, and in everyone, and everything, a person encounters” and that it is a “a secret force that exists everywhere, permeates all things, and wields power over society” nothing more than a “conspiracy theory”. 

Then, Israel used “the science” to further debunk the notion: “First of all, let me just debunk the basis of this claim: for anyone who doesn’t know, the sensors on soap dispensers don’t see human hands; they don’t have eyes. They work using a simple device called a PIR sensor that recognizes infrared light, which is emitted by all people, regardless of color (as long as they’re not dead).”

“Also, I don’t know about you, but those darn things never work for me. I can’t remember how many times I’ve banged on one to try to get soap out (yet it never occurred to me to blame anti-Semitism as the cause),” he continued.

He concluded: “But I digress. The point here isn’t how a soap dispenser works. It’s the idea that students at UCLA actually thought that they were designed with white supremacy in mind. This, and other claims like it, were not unique perspectives shared by one lone student, but rather a world-view that was reiterated and supported by the over 80 students who attended, or more accurately zoom-bombed, the debate.”

You can read the op-ed here.

Tyler Durden
Mon, 04/26/2021 – 17:20

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The American Humanist Association’s Withdrawal of a 25-Year-Old Award to Richard Dawkins

The withdrawal was apparently over this Tweet:

Robby Soave’s analysis today strikes me as quite sound, as is that from two other AHA award winners (at least for now), Rebecca Goldstein and Steven Pinker:

[A]n association of “freethinkers” has deemed certain thoughts unthinkable, nor that it is enforcing dogmas and catechisms by excommunicating a heretic.

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“The New Taboo: Quoting Epithets in the Classroom and Beyond” Now Published

It’s at 49 Capital University Law Review 1, and you can read it here. A short excerpt that captures the heart of our affirmative argument:

The question of how legal discussions should deal with fact patterns that include epithets is not, of course, original to law schools. Rather, it has long arisen in the profession for which law schools train their students. We might, then, ask: How do lawyers and judges deal with this question?

The answer, it turns out, is that they routinely quote the epithets literally and precisely, without euphemisms or expurgation. A Westlaw query for nigger & date(aft 1/1/2000) finds over 9,500 Westlaw-accessible opinions (including cases, trial court orders, and administrative decisions). And that does not include the nearly 5,000 such opinions from before 2000, plus whatever is present in the vast set of trial court orders that don’t appear on Westlaw. A search for (nigga niggaz) & date(aft 1/1/2000) finds over 2,300 opinions. A similar search for “fag” yields over 3,000 references, though a few of those are false positives.

Nor is this a reflection of some special callousness towards these two epithets; courts also accurately quote other epithets. To give just one illustration, the word “cunt” appears in over 1,500 Westlaw-accessible opinions, over 3,500 appellate briefs and trial court filings, and over 650 law review articles. Unsurprisingly, these documents are written by both male and female authors; just to take as a sample the dozen most recent authored federal appellate opinions containing this word, five were written by women and seven by men—not far removed from the general female/male ratio on
the federal appellate bench.

This is not a sign, we think, that judges are generally vulgar or sexist. We expect many of them would never use the word as an epithet themselves, orally or in writing; but when the word is part of the record, they quote it. They insist on accuracy and directness much more than do newspapers: searching through Lexis’s Major U.S. Newspapers database (which archives articles in 48 major newspapers) reveals exactly one quotation of “cunt,” in a 2009 article from the music calendar section of the San Antonio Express News, as part of the name of a “hardcore death metal band.”

We see the same for other vulgarisms of the sort that newspapers view as  “unprintable.” Consider this for comparison: the word “motherfucker” and its variants have never appeared in the print editions of 38 out of the 48 major United States newspapers; in the remaining ten, it appeared only sixteen times put together. But it has appeared in over 10,000 Westlaw-accessible opinions, including six from the United States Supreme Court (dating back to 1974) and over 500 from federal appellate courts. Judges seem to value direct and accurate quoting. [Further details omitted. -EV] …

These are serious, thoughtful judges, many of them liberal luminaries. It is worth considering that they might have made a sound decision in quoting the words fully and accurately.

Now the judges rarely explain why they made such a decision, but we think we can plausibly infer two things:

1. They likely concluded that, in legal matters, direct and accurate reporting of the facts is a key facet of rendering justice, even when an expurgated version or an indirect description would convey much the same information. Thus, for instance,  … People in Interest of R.D. (Colo. 2020) notes, “We reluctantly reproduce this racial slur and other pejorative terms from the record to give an uncensored account of the facts.” … And from a 2015 Rhode Island Supreme Court case:

We note that, in the testimony of both troopers, the various epithets allegedly uttered by defendant on the night of his arrest were transcribed without redaction. We have chosen to reproduce their testimony in this opinion in a similarly unbowdlerized fashion because what defendant is alleged to have actually said is so central to the issues on appeal. Unfortunately, many of the words in question are likely to cause real offense to some readers, but we are convinced that an unflinching examination of  defendant’s speech is critical to a just analysis of his arguments.

2. The judges also appear to adopt the use-mention distinction …. Though they doubtless think that using an epithet as an insult is wrong, they apparently see it as quite proper to mention it as a fact from the record or in a quote from a precedent (and see it as no serious burden on their audience).

This is well-established as to vulgarities: Though “courts condemn counsel’s use of profanity in the courtroom,” “courts generally find it permissible for a prosecutor to repeat profanity in argument when the profanity is part of the evidence presented at trial.” Similarly, consider In the Matter of Cullins, where the Kansas Supreme Court suspended a trial judge for using vulgarities and epithets—”fuck,” “bitch,” and “cunt”—and in the process itself quoted the words forty-four, nine, and nine times, respectively, indeed without apologizing for or even remarking on its quotations. The court was apparently drawing a sharp line between a judge saying offensive things, which it was punishing, and a judge quoting the words in discussing the facts of the case.

And courts follow the same pattern as to racial slurs. To give one example, consider this sentence from a 2020 [Ninth Circuit] opinion …: “We have considerable difficulty accepting … that, at this time in our history, people who use the word ‘nigger’ are not racially biased.” Surely that’s right, but surely the judges did not think this makes them racially biased for including the word, or for quoting it six other times in the opinion. Rather, the judges are again distinguishing mentioning the word (which they apparently view as quite proper) from using it (which they recognize is strong evidence of racial bias).

Naturally, this is just part of the argument (the article is 65 pages long, with lots of further analysis and evidence); other parts deal, among other things, with counterarguments, such as proposed distinctions between written and oral references, proposed distinctions between the classroom and the courtroom, claims about trauma, and more. I hope our readers find it interesting.

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The American Humanist Association’s Withdrawal of a 25-Year-Old Award to Richard Dawkins

The withdrawal was apparently over this Tweet:

Robby Soave’s analysis today strikes me as quite sound, as is that from two other AHA award winners (at least for now), Rebecca Goldstein and Steven Pinker:

[A]n association of “freethinkers” has deemed certain thoughts unthinkable, nor that it is enforcing dogmas and catechisms by excommunicating a heretic.

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What’s Yours Is Now Mine: America’s Era Of Accelerating Expropriation

What’s Yours Is Now Mine: America’s Era Of Accelerating Expropriation

Authored by Charles Hugh Smith via OfTwoMinds blog,

The takeaway here is obvious: earn as little money as possible and invest your surplus labor in assets that can’t be expropriated.

Expropriation: dispossessing the populace of property and property rights, via the legal and financial over-reach of monetary and political authorities.

All expropriations are pernicious, but the most destructive is the expropriation of labor’s value while the excessive gains of unproductive speculation accrue to the elite that owns most of the nation’s wealth.

In a nation in which the leadership has finely honed the art and artifice of legalized looting and financial legerdemain, it’s not surprising that the expropriation of labor’s value takes many forms. For the self-employed and small business proprietor, the list is practically endless:

1. Proliferating junk fees for permits, license renewals, applications, late fees, penalties, fines for violating obscure regulations, etc. (Never mind if you’re losing money; by definition, as a business owner you’re “rich” and deserve petty expropriations. If you’re Amazon, however, we’ll shower you with subsidies and tax breaks.)

2. Sky-high liability insurance, disability insurance and workers compensation insurance, because all the fraud and friction in these systems adds expense and you’re the one who will pay for it all.

3. Sky-high rent. Now that the Federal Reserve jacked up the “market value” of a $1 million commercial building to $10 million via asset inflation, rents have soared even though no improvements have been made to the tenants’ spaces. Thanks to the Fed, rents are many multiples of what they would be if the Fed hadn’t jacked up real estate to absurd overvaluations.

4. Taxes on wages. Consider the Self-Employed in a High-Tax State: let’s start with the 15.3% federal self-employment tax on wages up to $142,000, then add federal tax rates that quickly reach 32% and up and state taxes that hit 10% and higher in high-tax states, and then don’t forget the extra 3.9% Medicare tax above $125,000, and when we add all this up, the total tax rate exceeds 61%. (You want to quibble? OK, make it 55%. How much difference does this make? None.)

Now this may be acceptable in Scandinavian nations where you receive virtually free healthcare and higher education, but here in the Accelerating Expropriation USA, the Self-Employed in a High-Tax State has to pay insanely costly healthcare insurance out of the 39% that’s been oh-so-generously left to live on, as well as the insanely high student loans that were taken out to attend university.

Factor those in and the Self-Employed in a High-Tax State gets a third or less of her labor’s value. This only rises slightly in so-called lower-tax states, which tend to compensate for lower income taxes with high sales taxes and property taxes (“they get you coming and going.”)

Inflation is stealth expropriation, and like all expropriation, we’re told it’s for our own good, just like any other beating delivered by authorities. So as the Fed pushes asset inflation to Mars and whines that real-inflation isn’t high enough yet, the Self-Employed in a High-Tax State are experiencing a monthly expropriation of the purchasing power of what little labor value has been left to them.

I received an insightful email on this topic from A.C.:

“Expropriation.

Once you’ve had it done to you personally (as I did through my business) you view the world in a whole new light.

Without assets in which you can store the excess value of your labor minus the worry of debasement or theft, the incentive to create that excess goes away. That’s why the BLS ‘take this job and shove it’ JOLT measure is staying so stubbornly high.

Unfortunately, it’s that excess labor that funds what we call civilization.

People without the margins which excess labor can create tend to revert, for their own security, to community groupings based on familial bonds. They’re a store of value that’s stable and can’t be inflated away.

Those without such bonds are SOL. Hunger goes a long way in mitigating the personality disorders which impair the creation of such bonds.”

Here’s the takeaway: Any “wealth” denominated in financial instruments will be expropriated by one means or another, so “wealth” has to be denominated in some other “currency”, social, cultural, skills / intellectual, that is beyond the grasp of monetary and political authorities. This is the primary reason why crazy risky speculation is being pursued with such intensity: there is no way to escape the grinding impoverishment of expropriation for most wage-earners except to make more “wealth” via crazy-risky gambles than is being expropriated.

The Only Way to Get Ahead Now Is Crazy-Risky Speculation.

There’s another dynamic few grasp: When the Empire runs out of colonies to exploit, it brings its expropriation machinery home to stripmine the domestic populace. I explained this dynamic back in 2012:

Neofeudalism and the Neocolonial-Financialization Model (4/24/12)

Welcome to Neocolonialism, Exploited Peasants! (10/21/16) October 21, 2016

Why are we not surprised that as expropriation accelerates on all fronts, the Middle Class Now Holds Less Wealth than Top 1 Percent? (brookings.edu) Thanks to the magic of pay-to-play “democracy,” the super-wealthy and corporate elites escape all the expropriation machinery stripmining wage earners. The corporate taxes collected are a tiny slice of the hundreds of billions corporations spend on stock buybacks, the only purpose of which is to enrich insiders and the super-wealthy who own most of the nation’s financial assets.

The takeaway here is obvious: earn as little money as possible and invest your surplus labor in assets that can’t be expropriated. Develop low-overhead gigs and enterprises that are 100% yours so you can legitimately write off expenses and control how much work you decide to take on. Keep accurate records and pay whatever taxes are due, but by minimizing net income then taxes will be modest. Invest your best self, time and energy in assets that can’t be assessed, taxed or expropriated: your skills, networks, value you create and invest in your own self-sufficiency, sharing and good living of the kind that can’t be bought or sold or expropriated.

*  *  *

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

*  *  *

My recent books:

A Hacker’s Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).

Tyler Durden
Mon, 04/26/2021 – 17:00

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A New Study of COVID-19 Transmission Questions the Adequacy of the Six-Foot Rule and the Rationale for Many Occupancy Limits


social-distancing-sign-tim-mossholder-unsplash

A new MIT study of COVID-19 transmission casts doubt on both the adequacy of physical distancing guidelines and the rationale for occupancy limits in large, well-ventilated indoor settings. The study, published this week in Proceedings of the National Academy of Sciences, highlights the danger from tiny respiratory droplets that circulate throughout a room, which cannot be avoided by maintaining a distance of six feet from other people, as long recommended by the Centers for Disease Control and Prevention.

The authors—Martin Bazant, a professor of chemical engineering and mathematics, and John Bush, a professor of applied mathematics who specializes in fluid dynamics—note that the six-foot rule assumes “the primary vector of pathogen transmission is the large drops ejected from the most vigorous exhalation events, coughing and sneezing.” The rule makes sense based on that assumption, since “high-speed visualization of such events reveals that [six feet] corresponds roughly to the maximum range of the largest, millimeter-scale drops.”

But “there is now overwhelming evidence that indoor airborne transmission associated with relatively small, micron-scale aerosol droplets plays a dominant role in the spread of COVID-19.” The six-foot rule does not address that risk. In fact, Bazant and Bush say, “one is no safer from airborne pathogens” at 60 feet than at six feet when the air is well-mixed.

“We argue that, in the context of airborne transmission in a well-mixed space, the benefits of the six-foot rule are limited,” Bazant told Fox News. “As everyone in the room is breathing the same air, they share the same risk. Social distancing may thus be giving you a false sense of security. However, we note that the six-foot rule is valuable in limiting transmission by respiratory jets [such as those emitted by coughs and sneezes], which pose a heightened risk when people are not wearing masks.”

Using data from earlier research, including studies of COVID-19 superspreading events, Bazant and Bush developed a model that estimates indoor transmission risk based on factors such as ventilation, the size of the space, the number of people present, the level of activity (e.g., singing, shouting, or exercising vs. quiet speech or resting), the use of face masks, and the amount of time spent in the space. They found that some safeguards can have a dramatic impact on the likelihood that a carrier will spread the virus.

In “a typical American classroom, designed for an occupancy of 19 students and their teacher,” for instance, “the safe time after an infected individual enters the classroom is 1.2 [hours] for natural ventilation and 7.2 [hours] with mechanical ventilation.” That’s assuming “a quiet classroom,” where “resting respiration is the norm.” When masks are added, “these bounds are increased dramatically, to 8 and 80 [hours], respectively.” If students spend six hours a day in the classroom, “a school group wearing masks with adequate ventilation would thus be safe for longer than the recovery time for COVID-19,” and “school transmissions would be rare,” which jibes with what has been observed after schools are reopened.

Bazant and Bush’s estimates are much less reassuring for “elderly homes and long-term care facilities, which account for a large fraction of COVID-19 hospitalizations and deaths.” Based on New York City’s rules for nursing homes, which allow up to three residents per room and require at least 80 square feet each, and assuming natural ventilation, “the Six-Foot Rule fails after only [three minutes] under quasi-steady conditions, or after 17 [minutes] for the transient response to the arrival of an infected person.” Even with mechanical ventilation, “three occupants could safely remain in the room for no more than 18 [minutes]” in the steady-state scenario.

“This example provides insight into the devastating toll of the COVID-19 pandemic on the elderly,” Bazant and Bush write. “It underscores the need to minimize the sharing of indoor space, maintain adequate, once-through ventilation, and encourage the use of face masks.”

Bazant and Bush’s calculations also suggest that government-imposed occupancy limits, a common response to the pandemic, make sense only in some indoor settings. “Our analysis shows that many spaces may be safe to reopen at full occupancy, while others carry significant risk,” Bazant told Fox News, “depending on the amount of time people spend together, the ventilation rate, whether face masks are worn, and other factors.”

Bazant and Bush have created an online app that calculates the maximum recommended cumulative exposure time (CET) in various settings. The parameters include age group, viral strain, “room specifications” (classroom, living room, church, restaurant, etc.), and “human behavior,” including mask use and activity level. The “advanced mode” of the app includes additional factors, such as infection prevalence and population immunity.

After a person infected by the Wuhan strain enters a church occupied by 100 people who are wearing masks and speaking but not singing, for instance, the basic app says the CET should be no more than 17 hours. Assuming a one-hour service, the app recommends an occupancy limit of 211 people. For a commercial airliner with the same number of people, the maximum CET is 54 hours. The recommended maximum occupancy for an eight-hour flight is 160 passengers. Those estimates assume that a 10 percent risk of airborne transmission is tolerable.

“Often times the space is large enough, the ventilation is good enough, and the amount of time people spend together is such that those spaces can be safely operated even at full capacity, and the scientific support for reduced capacity in those spaces is really not very good,” Bazant told CNBC, mentioning large university classrooms as an example. “I think if you run the numbers, even right now, for many types of spaces, you’d find that there is not a need for occupancy restrictions.”

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GameStop Soars After Successful $551 Million Equity Raise

GameStop Soars After Successful $551 Million Equity Raise

GameStop shares are surging in after-hours trading following a statement by the firm that it has successfully completed an “at-the-market” equity offering program, selling 3.5m shares for gross proceeds of about $551m.

That is an average price of $157 per share (and the stock is trading around $180 after hours)…

The full GameStop press release is below…

GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that it has completed its previously announced “at-the-market” equity offering program (the “ATM Offering”).

GameStop disclosed on April 5, 2021 that it had filed a prospectus supplement with the U.S. Securities and Exchange Commission to offer and sell up to a maximum of 3,500,000 shares of its common stock from time to time through the ATM Offering. The Company ultimately sold 3,500,000 shares of common stock and generated aggregate gross proceeds before commissions and offering expenses of approximately $551,000,000.

Net proceeds will be used to continue accelerating GameStop’s transformation as well as for general corporate purposes and further strengthening the Company’s balance sheet.

Earlier this month, GameStop disclosed that it issued an irrevocable notice of redemption to redeem $216.4 million in principal amount of its 10.0% Senior Notes due 2023 on April 30, 2021.

This voluntary early redemption will cover the entire amount of the outstanding 10% Senior Notes, which represents all of the Company’s long-term debt.

Presumably this means the selling is over? Squeeze 3.0?

Tyler Durden
Mon, 04/26/2021 – 16:48

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More Signs Of Slowing US Vaccine Demand Emerge As Some States Turn Down Shipments

More Signs Of Slowing US Vaccine Demand Emerge As Some States Turn Down Shipments

As a surprising number of Americans (mostly millennials who face lower risks) miss their second COVID-19 vaccine dose, the Wall Street Journal has become the latest MSM media outlet to point out the fact that unused jabs are piling up in states across the US, despite the fact that every American over the age of 16 is now technically eligible.

And as President Biden introduces a tax credit for small businesses to enable them to offset any paid leave offered to employees as a result of receiving or recovering from their vaccinations, a growing number of states who led the charge during the early stages of the vaccine rollout have seen their efforts sputter. As we noted earlier, this has prompted public health officials to call for a more involved approach to distributing vaccines, creating more opportunities for those who are skeptical of the jab to receive their vaccines from their own doctors, in the hopes that it might coax them to comply.

Some states that led the way early in the vaccine rollout have found it hard to sustain their success. In mid-February, Alaska, New Mexico and West Virginia saw at least one in seven residents get a shot, well ahead of the one-in-10 rate nationally. But as vaccine eligibility has expanded, only New Mexico remains in the top 20 states for vaccination rates among those early leaders. In their place, states along the east and west coasts have emerged, though these states too are starting to see demand slacken.

Source: WSJ

States in the Mountain West and the South have led the slowdown, while a survey from the Census Bureau found that these states lead the US in vaccine skepticism.

Source: WSJ

As Dr. Scott Gottlieb recently warned, the biggest obstacle to vaccine-induced “herd immunity” isn’t supply, but Americans’ willingness to get the jab. Racial and ethnic divisions in terms of demand have largely disappeared, and in their place, are divisions by age group, and education level.

Source: WSJ

A separate national survey, conducted by the Kaiser Family Foundation, also found deep divisions along party lines, with Republicans nearly three times as likely as Democrats to express reluctance to being vaccinated, while rural Americans were also more reluctant than city-dwellers (perhaps because they live in less densely populated communities).

Source: WSJ

While focus on the vaccination drive intensifies, the global COVID-19 pandemic is accelerating at its fastest pace in months. The number of new global cases accelerated last week at its fastest pace yet, thanks to India’s worsening second wave. Some states have reportedly turned down vaccine shipments, with Louisiana no longer asking the federal government for its full allotment, according to USA Today.

Source: Johns Hopkins

Demand is falling even though no state has yet reached the threshold for “herd immunity”, a standard that some public health experts now believe may never be reached. More than 1 billion vaccines have been administered worldwide, according to Bloomberg’s vaccine tracker, though supplies overwhelmingly favor western developed nations like the US, and China.

While the US outbreak appears once again to have plateaued (despite the surge in India and concerns that it might lead to a broader resurgence), Dr. Anthony Fauci has finally flip flopped on requirements to wear masks outdoors, admitting finally that the risk of contracting the virus outdoors is minuscule.

Tyler Durden
Mon, 04/26/2021 – 16:40

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Rabo: Any Suggestion The Fed Was Totally Wrong Again Would Send Markets Into A Tailspin

Rabo: Any Suggestion The Fed Was Totally Wrong Again Would Send Markets Into A Tailspin

By Michael Every of Rabobank

Greenfinger (wah – waaah – wah!)

This week has Fed and BOJ meetings. Presumably both will do what has become the norm of late: keep on keeping on, and hoping everything works out fine in the end. That’s a strategy of sorts, even if the matching narrative is becoming increasingly strained.

For now the market is still split –if not evenly– between reflationistas and deflationistas. On that note US Democratic Senator Manchin is at it again. A few weeks ago, I noted ‘The Man of La-Manchina’ was potentially stopping the US heading off on a quixotic quest to tilt at windmills by refusing to abandon the Senate filibuster. Manchin has now told us he refuses to use the budgetary short-cut of ‘reconciliation’ to ram through the USD2.3 trillion infrastructure bill; opposes the huge slice of the fiscal package for social spending classified as infrastructure; and praises the Republican counter-proposal of USD600bn just for infrastructure as “a good start”. In short, we may get further US stimulus – but it may well be less than recent headlines suggested. The same is true for the subsequent USD1.5 trillion stimulus package and matching tax hikes.  

Of course, that doesn’t deal with the current supply-chain snarl, which is generating cost-push inflation across the board. Fed economists whose models presume supply chains, like banks and money, don’t exist —what irony, and what accurate models of a financialized, globalized economy as a result!– need to compute how high inflation will go, because stuff *cannot* appear by magic; *and* how much damage that does to the real spending power of those who *didn’t* see savings magically appear in their bank accounts during Covid; and then how weak the economy is again on the other side. Or they can put on a rictus grin and keep their fingers crossed. Because any suggestion they may have been –how can one put it best?– totally wrong, again, would send markets into a tailspin. (I’ve mentioned before that this reflationista vs. deflationista battle of markets vs. central bank is playing out rapidly in Australia too: keep an eye on that front.)

Elsewhere we see another clash of strained narratives, which I dub ‘realista’ vs. ‘surrealista’.

China’s giant state asset management company Huarong is delaying the release of its 2020 audited results for a second time – always a good sign. Not to worry, however. The market meme is that Beijing will bail-out or bail-in investors via the sovereign wealth fund or the central bank, underlining yet again it only allows Potemkin defaults. And not only Beijing, of course. At the same time, Chinese firms are listing in the US at a record pace, with USD6.6bn raised via IPOs so far this year, oblivious to US legislation that says these firms will have to let the SEC read their audited accounts ahead. Maybe they think the US central bank also only allows Potemkin defaults now,…and are they wrong?

The EU, which in late December signed the CAI investment deal with China, and whose Merkel and Macron keep holding Zoom chats with Xi Jinping, today sees the following headline: EU slams China’s ‘authoritarian shift’ and broken economic promises. The thrust of the matter is that the EU now seems willing to work more closely with the Biden administration in this key area. Meanwhile, the US is scrambling to repair enormous diplomatic damage done to the tentative new arrangements it is building with India, now suffering a terrifying surge in virus deaths from a terrifying new Covid strain. The US refusal to either export excess vaccines to India or raw materials for their manufacture, and a Friday tweet stating it was in the world’s best interests for America to be vaccinated first, generated a huge political backlash across India. Belatedly, the US (and EU) are now offering assistance —after China and Pakistan(!)– but it remains to be seen what the long-run impact of this geostrategy snafu will be. Still, at least DC didn’t accuse India of genocide, a charge now leveled at Turkey for its actions back in 1915, and which underlines the rapidly-cooling relationship between the two NATO allies.

You think it’s hard to see through the thicket of news and data to project inflation vs. deflation? Try doing that when the political tectonic plates on which global supply chains will be built are shifting – and even ‘small’ policy decisions can exacerbate this process.

One other story should really grab our attention. MI6, the British version of the CIA, are now “green spying” on the world’s biggest polluters to make sure they keep their climate-change promises(!)

Yes, let’s all titter at the idea of 007 being sent on a mission to see how many lights have been left on at night, and if Russian households are using gas boilers or heat pumps: “Dr CO2”; “Greenfinger”; “You Only Recycle Twice”. Yet it’s really “The Living Daylights” of solar power; “The World is not Enough”; and “No Time to Die”, at the highest levels of state too, apparently – and it’s now not just the US saying the environment is the highest national security priority. That’s an even bigger story than Manchin perhaps slowing a US Green New Deal.

It also sits alongside other recent suggestions that the US is prepared to impose green tariffs and subsidize green technology exports, proposals already floated by the European Commission – and, of course, there is no risk at all of China subsidizing green tech to try to gain market share. Color me unsurprized: the belief that we would end up with Green Keynesianism and/or Green MMT —and green protectionism— is not a new one in this Daily; and if even the spooks are spooked, then serious wheels are indeed turning.

Yet does this mean 007 will be (flying?) around the world to look for climate-change cheats – or will he just be looking at accusations of institutional ‘greenwashing’ that point fingers at Wall Street titans and even the EU? Which narrative do you expect to see there, folks?

Tyler Durden
Mon, 04/26/2021 – 16:26

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