Criminal Justice, Gun Regulations, and Labor Unions


updown

Senior Editor Robby Soave subs for Katherine Mangu-Ward on The Reason Roundtable this week, sitting in with Matt Welch, Peter Suderman, and Nick Gillespie to discuss criminal justice reform at the federal and local levels, Biden’s gun regulations, unions, and media bias.

Discussed in the show:

1:49: Minnesota’s latest police shooting

21:54: Biden’s effort to curb gun violence

31:01: A union drive fails at Amazon amid Biden’s pro-union policies, and media bias surrounds the story

43:38: Weekly Listener Question: Explain to me how the left can find racism under every rock yet not recognize that the drug war, minimum wages, and gun control directly stem from racism?

47:19: Media recommendations for the week.

This week’s links:

Send your questions by email to roundtable@reason.com. Be sure to include your social media handle and the correct pronunciation of your name.

Today’s sponsors:

  • Get an up-close look at the history of the Constitution with the Institute for Justice’s new podcast, Bound by Oath. Available wherever you check out podcasts.
  • Donor-advised funds are the simple, tax-friendly, secure way to give. Why not work with the fund that matches your values? For Roundtable listeners, that’s DonorsTrust. Get your free Donor Prospectus to see how DonorsTrust can be your principled charitable partner at DonorsTrust.org/Reason.

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Criminal Justice, Gun Regulations, and Labor Unions


updown

Senior Editor Robby Soave subs for Katherine Mangu-Ward on The Reason Roundtable this week, sitting in with Matt Welch, Peter Suderman, and Nick Gillespie to discuss criminal justice reform at the federal and local levels, Biden’s gun regulations, unions, and media bias.

Discussed in the show:

1:49: Minnesota’s latest police shooting

21:54: Biden’s effort to curb gun violence

31:01: A union drive fails at Amazon amid Biden’s pro-union policies, and media bias surrounds the story

43:38: Weekly Listener Question: Explain to me how the left can find racism under every rock yet not recognize that the drug war, minimum wages, and gun control directly stem from racism?

47:19: Media recommendations for the week.

This week’s links:

Send your questions by email to roundtable@reason.com. Be sure to include your social media handle and the correct pronunciation of your name.

Today’s sponsors:

  • Get an up-close look at the history of the Constitution with the Institute for Justice’s new podcast, Bound by Oath. Available wherever you check out podcasts.
  • Donor-advised funds are the simple, tax-friendly, secure way to give. Why not work with the fund that matches your values? For Roundtable listeners, that’s DonorsTrust. Get your free Donor Prospectus to see how DonorsTrust can be your principled charitable partner at DonorsTrust.org/Reason.

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‘Extremely Dangerous’ Radioactive Material Stolen In “Violent” Truck Robbery 

‘Extremely Dangerous’ Radioactive Material Stolen In “Violent” Truck Robbery 

The Mexican government warned nine states, including its capital, Mexico City, that a truck carrying radioactive material was “violently robbed” in the early hours on Sunday. 

According to a statement released by the Secretariat of Security and Citizen Protection, a Toyota Hilux transporting highly radioactive material was hijacked from Teoloyucan, a city and municipality located in the State of Mexico. Details about the hijacking have been scant so far. What has been made public is that a possible criminal gang hijacked the vehicle carrying Iridium-192. 

Mexico’s National Commission for Nuclear Safety and Safeguards (CNSNS) reported the incident to the National Civil Protection Coordination (CNPC), who posted this alert on social media:

The government warned anyone with “direct contact with the source [radioactive material] for hours or days, and its effects can be fatal.” They also suggested a “30-meter perimeter should also be established around the device in case it is found.” 

So far, local authorities have yet to voice their concern about the probabilities that the dangerous material could fall into criminal gang hands where they could attach it to explosives and produce a dirty bomb. 

It’s still not clear which bad actors obtained the radioactive material and what their intentions could be. The question we have is if the criminals specifically targeted the vehicle carrying the radioactive material or if this was just a hapless carjacking.

With the location of the radioactive material unknown and the Mexico–US border in crisis, flooded with immigrants – this could pose a severe threat to the US. 

Over the years, there’s been a handful of carjackers who had stumbled upon radioactive material, one in 2011 when a car thief stole iridium-192 and another in 2013 when carjackers stole cobalt-60. Still, the Mexican government hasn’t learned its lesson in securing radioactive material.  

Tyler Durden
Mon, 04/12/2021 – 17:20

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Supreme Court Blocks California’s COVID-19 Restrictions on Private Prayer Groups


Gavin-Newsom-4-2-21-Newscom

The U.S. Supreme Court has blocked enforcement of California’s pandemic-inspired restrictions on at-home religious gatherings, saying the plaintiffs are likely to prevail in their claim that the state’s rules violate the First Amendment. The Court previously had issued emergency injunctions against California’s limits on gatherings in houses of worship, and Friday’s decision confirms that the same principles apply to services in people’s homes.

The rule at issue in Tandon v. Newsom limits private Bible study and prayer meetings to people from no more than three households. In February, a federal judge rejected the plaintiffs’ request for an injunction against that restriction, viewing it as a valid exercise of Gov. Gavin Newsom’s public health powers. The U.S. Court of Appeals for the 9th Circuit last month refused to issue an emergency injunction pending appeal.

“The Ninth Circuit’s failure to grant an injunction pending appeal was erroneous,” the Supreme Court says in a per curiam opinion supported by Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett. The Court cites four principles that should have been “clear” to the 9th Circuit from prior cases involving COVID-19 restrictions and religious freedom:

1. “Government regulations are not neutral and generally applicable, and therefore trigger strict scrutiny under the Free Exercise Clause, whenever they treat any comparable secular activity more favorably than religious exercise….It is no answer that a State treats some comparable secular businesses or other activities as poorly as or even less favorably than the religious exercise at issue.”

2. “Whether two activities are comparable for purposes of the Free Exercise Clause must be judged against the asserted government interest that justifies the regulation at issue….Comparability is concerned with the risks various activities pose, not the reasons why people gather.”

3. “The government has the burden to establish that the challenged law satisfies strict scrutiny. To do so in this context, it must do more than assert that certain risk factors ‘are always present in worship, or always absent from the other secular activities’ the government may allow….Instead, narrow tailoring requires the government to show that measures less restrictive of the First Amendment activity [such as masks, physical distancing, or less onerous size limits] could not address its interest in reducing the spread of COVID.”

4. “Even if the government withdraws or modifies a COVID restriction in the course of litigation [as California did in this case], that does not necessarily moot the case. And so long as a case is not moot, litigants otherwise entitled to emergency injunctive relief remain entitled to such relief where the applicants ‘remain under a constant threat’ that government officials will use their power to reinstate the challenged restrictions.”

The five justices in the majority express some annoyance that the 9th Circuit has failed to apply these principles. “This is the fifth time the Court has summarily rejected the Ninth Circuit’s analysis of California’s COVID restrictions on religious exercise,” they note.

Chief Justice John Roberts thought an emergency injunction was not appropriate, although he did not explain why. In a dissent joined by  Justices Stephen Breyer and Sonia Sotomayor, Justice Elena Kagan argues that California’s rule is neutral and generally applicable, meaning it does not trigger strict scrutiny, because it applies to all private gatherings.

“If the State also limits all secular gatherings in homes to three households, it has complied with the First Amendment,” Kagan writes. “And the State does exactly that: It has adopted a blanket restriction on at-home gatherings of all kinds, religious and secular alike.”

Kagan does not think it is appropriate to consider how the state treats settings such as stores and hair salons. And even if that comparison were relevant, she says, there are sound reasons to believe gatherings in homes pose greater risks of virus transmission than gatherings in such businesses: Homes are apt to be smaller and not as well-ventilated, private gatherings tend to last longer, and people in private settings may be less likely to wear masks and practice physical distancing.

“In ordering California to weaken its restrictions on at-home gatherings, the majority yet again ‘insists on treating unlike cases, not like ones, equivalently,'” Kagan says. “And it once more commands California ‘to ignore its experts’ scientific findings,’ thus impairing ‘the State’s effort to address a public health emergency.'”

The Supreme Court first enjoined COVID-19 restrictions on religious activity last November, after the Roman Catholic Diocese of Brooklyn and Agudath Israel of America challenged New York’s limits on houses of worship. The following month, the Court vacated a district court decision upholding Colorado’s occupancy limits on religious services. In February, the Court issued emergency injunctions against California’s restrictions on religious services in South Bay United Pentecostal Church v. Newsom, Harvest Rock Church v. Newsom, and Gateway City Church v. Newsom. That same month in Gish v. Newsom, it vacated a district court decision upholding California’s rules.

Breyer, Kagan, and Sotomayor dissented in all of those cases, arguing that the challenged regulations did not implicate the First Amendment because they did not actually treat religious conduct differently from secular conduct that was similar in all relevant respects. As Kagan put it on Friday, “the law does not require that the State equally treat apples and watermelons.”

The dissenters obviously disagree with their colleagues about what counts as an apple or a watermelon. But more fundamentally, they always seem inclined to accept the public health judgments embodied in governors’ COVID-19 edicts, even when those judgments seem scientifically dubious, even when they change in the midst of litigation, and even when they result in policies that privilege politically influential industries (such as gambling in Nevada and entertainment in California) or explicitly treat religious gatherings as a disfavored category (as New York’s rules for “houses of worship” did).

It is reasonable to argue, based on the Court’s pre-pandemic precedents, that some COVID-19 regulations are constitutional even if they happen to impinge on religious activity. But at this point it is not clear that Kagan et al. can imagine a disease control policy that would violate the Free Exercise Clause, provided it was presented as necessary for the protection of public health, as such policies always are.

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Janet Yellen Is Serious, And That’s Really Sad

Janet Yellen Is Serious, And That’s Really Sad

Authored by John Tamny via RealClearMarkets.com,

What’s the most common “people” sight in any public place, anywhere? At this point in our evolution the answer is easy: hunched over individuals tapping away on smartphones.

It doesn’t matter one bit if the locale is rich or poor. The gadgets are everywhere.

The other day at the library your writer spied a homeless man, surrounded by presumably all of his worldly possessions. Those possessions included a smartphone. He had it hooked up to a power source outside the library’s main entrance.

Please think about this for minute or two. A homeless American man was charging a communications device that wasn’t available in capability and speed to the richest of the rich probably even five years ago. Certainly not ten.

It’s a reminder that what the rich enjoy exclusively is always and everywhere a preview of what we’ll all eventually enjoy if markets remain free, and wealth largely stays where it’s created: in the private sector.

About wealth more broadly, its creation is largely a consequence of entrepreneurs mass producing the former baubles of the rich. Those who wring their hands about inequality unwittingly expose themselves as doltish, and heartless too. In truth, a soaring wealth gap is the surest sign of a shrinking lifestyle gap. See the homeless man at the library in 2021 America.

Which brings us to Janet Yellen, President Biden’s Treasury secretary. Without anything remotely resembling a smirk, or a wink, Yellen called for politicians around the world to band together on corporate taxes. She seeks equality when it comes to tax rates. In Yellen’s words, “Together, we can use a global minimum tax to make sure the global economy thrives based on a level playing field in the taxation of multinational corporations.” Yellen was serious.

Where do we begin?

Up front, Yellen’s implicit acknowledgement is that members of the American right were correct all along. Businesses are people, and people respond to tax rates. If they become too onerous, people migrate away from them. It turns out people are mobile, which means corporations are.

Yellen wants to ensnare corporations. This explains her call to allegedly avoid a “race to the bottom” whereby corporations take their wealth and talent to the tax situations that most protect the wealth of their shareholders. In other words, if non-U.S. countries would just stop competing with the U.S. by lowering their corporate tax rates, Yellen et al wouldn’t have to fear U.S. companies exiting the U.S. Yes, Yellen aims to trap U.S. businesses.

It speaks to how simplistic and mean-spirited is her seriously expressed view about taxation. Yellen wants the U.S. Treasury to own more of the profits of U.S. companies, but she doesn’t want to have to compete. Better if other countries pursue tax mediocrity of the U.S. kind. If other countries are not dynamic, and aren’t forward thinking in their approach to taxes, then the U.S. won’t have to be.

To be clear, dynamic and correct when it comes to corporate taxation is a zero tax rate. To understand why, never forget that corporations as taxpaying entities are a fiction. Shareholders pay taxes. By definition. They have shares because they saved a portion of their after-tax income. Which means a corporate tax amounts to double taxation of individual earnings.

Yellen wants more of U.S. corporate profits, but doesn’t want to work for them. More specifically, Yellen plainly feels individual U.S. tax rates aren’t high enough, so she seeks global tax harmonization on the corporate level in order to get another swipe at individuals. On their own, Yellen’s desires rate ridicule. As evidenced by the trillions Treasury collects every year from taxpayers in order to fund a government with powers “few and defined,” Americans are already overtaxed.

Yellen might respond that the citizens of other countries pay more, but then those countries aren’t governed by a Constitution explicitly written to limit government. Furthermore, why would we want to emulate the others? They want to be us. That’s why people continue to risk their lives to get to the United States, and it’s why people in heavily taxed countries have been migrating to the U.S. for centuries.

But wait, Yellen’s boss in President Biden has things he’d like to do with the trillions Yellen aims to vacuum in by equalizing global tax rates. About this, just once it would be nice if a senator or congressmen were to ask Yellen what amazing things government does with the wealth it extracts. It would also be nice if they asked her why people want “money” in the first place. Odds are she doesn’t know. Odds are she would stutter. Which is the point.

This explains why this piece began with smartphone example. Enterpreneurs with expansive minds and who were matched with capital have made it so that the poorest of poor Americans have supercomputers among their meager possessions. Entrepreneurs have made smartphones near universally accessible.

It’s all a reminder of what Yellen would stutter about simply because she doesn’t know. People want money for what it can be exchanged for, and it’s increasingly true that very little money can be exchanged for staggering value. See the ubiquity of smartphones yet again.

All of which speaks to the abject foolishness behind Yellen’s plea to other countries to join the U.S. in overtaxing corporations. She’s calling for the confiscation of the very wealth that is relentlessly pushed to higher uses in order to create more and more once-out-of-reach goods for the masses. The U.S.’s poorest have smartphones today, so what will it be tomorrow?

That’s the unknown question. The only thing the mildly sapient know is that if Yellen gets her way, tomorrow won’t be as abundant as it should be. It won’t be because Yellen believes her boss and his lieutenants in Congress are better at allocating resources than the world’s greatest companies. That’s really sad.

Tyler Durden
Mon, 04/12/2021 – 17:00

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Supreme Court Blocks California’s COVID-19 Restrictions on Private Prayer Groups


Gavin-Newsom-4-2-21-Newscom

The U.S. Supreme Court has blocked enforcement of California’s pandemic-inspired restrictions on at-home religious gatherings, saying the plaintiffs are likely to prevail in their claim that the state’s rules violate the First Amendment. The Court previously had issued emergency injunctions against California’s limits on gatherings in houses of worship, and Friday’s decision confirms that the same principles apply to services in people’s homes.

The rule at issue in Tandon v. Newsom limits private Bible study and prayer meetings to people from no more than three households. In February, a federal judge rejected the plaintiffs’ request for an injunction against that restriction, viewing it as a valid exercise of Gov. Gavin Newsom’s public health powers. The U.S. Court of Appeals for the 9th Circuit last month refused to issue an emergency injunction pending appeal.

“The Ninth Circuit’s failure to grant an injunction pending appeal was erroneous,” the Supreme Court says in a per curiam opinion supported by Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett. The Court cites four principles that should have been “clear” to the 9th Circuit from prior cases involving COVID-19 restrictions and religious freedom:

1. “Government regulations are not neutral and generally applicable, and therefore trigger strict scrutiny under the Free Exercise Clause, whenever they treat any comparable secular activity more favorably than religious exercise….It is no answer that a State treats some comparable secular businesses or other activities as poorly as or even less favorably than the religious exercise at issue.”

2. “Whether two activities are comparable for purposes of the Free Exercise Clause must be judged against the asserted government interest that justifies the regulation at issue….Comparability is concerned with the risks various activities pose, not the reasons why people gather.”

3. “The government has the burden to establish that the challenged law satisfies strict scrutiny. To do so in this context, it must do more than assert that certain risk factors ‘are always present in worship, or always absent from the other secular activities’ the government may allow….Instead, narrow tailoring requires the government to show that measures less restrictive of the First Amendment activity [such as masks, physical distancing, or less onerous size limits] could not address its interest in reducing the spread of COVID.”

4. “Even if the government withdraws or modifies a COVID restriction in the course of litigation [as California did in this case], that does not necessarily moot the case. And so long as a case is not moot, litigants otherwise entitled to emergency injunctive relief remain entitled to such relief where the applicants ‘remain under a constant threat’ that government officials will use their power to reinstate the challenged restrictions.”

The five justices in the majority express some annoyance that the 9th Circuit has failed to apply these principles. “This is the fifth time the Court has summarily rejected the Ninth Circuit’s analysis of California’s COVID restrictions on religious exercise,” they note.

Chief Justice John Roberts thought an emergency injunction was not appropriate, although he did not explain why. In a dissent joined by  Justices Stephen Breyer and Sonia Sotomayor, Justice Elena Kagan argues that California’s rule is neutral and generally applicable, meaning it does not trigger strict scrutiny, because it applies to all private gatherings.

“If the State also limits all secular gatherings in homes to three households, it has complied with the First Amendment,” Kagan writes. “And the State does exactly that: It has adopted a blanket restriction on at-home gatherings of all kinds, religious and secular alike.”

Kagan does not think it is appropriate to consider how the state treats settings such as stores and hair salons. And even if that comparison were relevant, she says, there are sound reasons to believe gatherings in homes pose greater risks of virus transmission than gatherings in such businesses: Homes are apt to be smaller and not as well-ventilated, private gatherings tend to last longer, and people in private settings may be less likely to wear masks and practice physical distancing.

“In ordering California to weaken its restrictions on at-home gatherings, the majority yet again ‘insists on treating unlike cases, not like ones, equivalently,'” Kagan says. “And it once more commands California ‘to ignore its experts’ scientific findings,’ thus impairing ‘the State’s effort to address a public health emergency.'”

The Supreme Court first enjoined COVID-19 restrictions on religious activity last November, after the Roman Catholic Diocese of Brooklyn and Agudath Israel of America challenged New York’s limits on houses of worship. The following month, the Court vacated a district court decision upholding Colorado’s occupancy limits on religious services. In February, the Court issued emergency injunctions against California’s restrictions on religious services in South Bay United Pentecostal Church v. Newsom, Harvest Rock Church v. Newsom, and Gateway City Church v. Newsom. That same month in Gish v. Newsom, it vacated a district court decision upholding California’s rules.

Breyer, Kagan, and Sotomayor dissented in all of those cases, arguing that the challenged regulations did not implicate the First Amendment because they did not actually treat religious conduct differently from secular conduct that was similar in all relevant respects. As Kagan put it on Friday, “the law does not require that the State equally treat apples and watermelons.”

The dissenters obviously disagree with their colleagues about what counts as an apple or a watermelon. But more fundamentally, they always seem inclined to accept the public health judgments embodied in governors’ COVID-19 edicts, even when those judgments seem scientifically dubious, even when they change in the midst of litigation, and even when they result in policies that privilege politically influential industries (such as gambling in Nevada and entertainment in California) or explicitly treat religious gatherings as a disfavored category (as New York’s rules for “houses of worship” did).

It is reasonable to argue, based on the Court’s pre-pandemic precedents, that some COVID-19 regulations are constitutional even if they happen to impinge on religious activity. But at this point it is not clear that Kagan et al. can imagine a disease control policy that would violate the Free Exercise Clause, provided it was presented as necessary for the protection of public health, as such policies always are.

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Steve Cohen Dumps Manhattan Penthouse At Stunning 74% Discount

Steve Cohen Dumps Manhattan Penthouse At Stunning 74% Discount

Billionaire hedge fund manager Steve Cohen, first put his gorgeous Upper East Side duplex penthouse on the market in 2013 for $115 million.

He bought the place for $24 million back in 2005. He hired late architect Charles Gwathmey to transform the space.

And now, the 9,000-square-foot (836-square-meter) duplex at 151 East 58th St. is finally under contract in Manhattan’s priciest deal last week, according to a report Monday by luxury brokerage Olshan Realty Inc.

The most recent listing seeking $29.5 million, according to StreetEasy.

It’s been a wild (and one-way) ride from the initial listing in 2013. The apartment was listed for $98 million in 2015, then again for $82 million, then for $79 million, and then for $72 million in 2016. In 2016 it was reduced to $67.5 million and in 2017 down to $57.5 million. The last price drop was in early 2019 when it dropped to $45 million.

Located at One Beacon Court – part of the Bloomberg Tower complex – it’s in a prime location on the southeast corner of Central Park.

The final sale price won’t be known until the deal closes, but at $29.5 million, it’s a 74% haircut from the original ask price and, including the cost of the transformation and 8 years of upkeep, fees, and taxes, we suspect the hedge fund billionaire barely broke even.

Tyler Durden
Mon, 04/12/2021 – 16:40

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City Council Member Owes $47K in Attorney Fees, for Losing Harassment Restraining Order Case Against Critics

From The Coast News:

A Vista Superior Court judge awarded more than $47,000 in attorneys’ fees to Noel Breen and Anthony “Tony” Bona on April 9 after ruling Carlsbad Councilwoman Cori Schumacher had violated their First Amendment rights.

Here are more details on the underlying case, which I blogged about a month ago:

Carlsbad City Council member Cori Schumacher got a temporary civil harassment restraining order against Carlsbad resident Tony Bona and former resident Noel Breen over their speech, essentially claiming their speech about her was threatening; they moved to dismiss under the California anti-SLAPP statute, and on Thursday, Superior Court Judge Cynthia Freeland granted the defendants’ motion (filed by lawyer Erik Jenkins). A bit of factual background, from The Coast News (Steve Puterski):

Court documents show Bona’s posts centered on rumors Schumacher didn’t actually live in the district she represented and should be disqualified from holding public office.

In relation to the rumor, Bona shared an image of a cartoon character from the children’s book “Where’s Waldo,” writing that instead of finding Waldo, residents should join him in playing a game of “Where’s Cori?”  The rumors about Schumacher’s residence have since been debunked….

Schumacher also claimed a YouTube video on Bona’s channel “Regular Guy in Carlsbad” constituted harassment. The video in question featured a clown face superimposed over Schumacher’s head during a Carlsbad City Council meeting and later exploded from “apparent confusion,” per Freeland’s ruling.

Here’s an excerpt from the tentative order, which Judge Freeland adopted as her final order:

[T]o obtain a CHRO [civil harassment restraining order], Schumacher must prove through clear and convincing evidence that she suffered … “unlawful violence, a credible threat of violence, or a knowing and willful course of conduct directed at a specific person that seriously annoys, or harasses the person, and that serves no legitimate purpose.” A “credible threat of violence” is a “knowing and willful statement or course of conduct that would place a reasonable person in fear for the person’s safety or the safety of the person’s immediate family, and that serves no legitimate purpose.” “Constitutionally protected activity is not included within the meaning of ‘course of conduct.”‘ …

{Schumacher [argues] that the request for a civil harassment restraining order “only arises from specific threats that were made to (a) force Petitioner to move out of her home, (b) surveil and stalk Petitioner using ‘high tech surveillance,’ and (c) threatening to blow Petitioner up with a bomb by posting a video of an explosion superimposed over her speaking.”} [But the speech here is not punishable threats.] Bona commented on a Facebook post about a council meeting after previously asking Schumacher to step down that she should get ready to “move” out of the city…. Bona posted about neighbors surveilling her [apparently in relation to the rumors that she didn’t actually live in the city -EV] alongside a picture of Waldo and the words “Where’s Cory?” … Bona added a brief animated explosion similar to a comic book (along with various other animations added to the video) over Schumacher’s face in the middle of a council meeting that appears to reference Schumacher’s head exploding from confusion.

Neither Bona’s “non-neighborly” comments on Nextdoor, his [California Public Records Act] request, nor his threat to sue over unanswered questions about COVID during a Facebook Live event provide context that would lead a reasonable person to believe that he intended to physically force Schumacher from her home, join forces with the neighborhood to unlawfully stalk her through high tech surveillance at the expense of her safety, or build a bomb. Simply calling these posts threats is not enough; some modicum of clear and convincing evidence is required to establish a prima facie case….

The result is the same as to Breen. Merely comparing Schumacher’s leadership to that of East Germany is not a threat to her safety, but rather pure political criticism. Although many people may disagree, or find such a comparison to be crude and offensive method of stating his opposition, even unpopular opinions are entitled to protection. Nothing in the August 9, 2020 blog post Schumacher submitted can reasonably be construed as a threat to her safety or other unconstitutional activity.

The same is true of the September 7, 2020 blog post Schumacher submits that repeatedly includes the term “GTFO.” … [T]he blog post itself notes it is “borrow[ing] a line from the Councilwoman” that she had put “squarely in the public domain”—an apparent reference to Schumacher’s August 21, 2020 Twitter post telling [Tony Krvaric (chairman of the San Diego Republican Party)] to take his “brand of white nationalist, regressive, traditionalist/authoritarian toxic & destructive politics” and “GTFO of North County.” Breen’s blog post thereafter uses GTFO not as a threat to Schumacher, but as a mantra with phrases like “Never again will ‘guilt by association’ carry the day GTFO” and “Never again will you be bullied into silence GTFO.”

[T]he Court does not consider whether Breen’s unpled conduct cornering Schumacher and monopolizing her time at political events in years past would independently entitle her to a CHRO. But even if the Court considers the evidence for the purpose of putting the pleaded allegations (Breen’s blog) in context, this evidence simply does not color these posts from a year later as threats that Breen would physically force Schumacher from her home or otherwise put her in physical danger. The only reasonable interpretation of these posts is political commentary, not personal threats….

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The “Helicopter Parent” Fed & The Fatal Crash Of Risk

The “Helicopter Parent” Fed & The Fatal Crash Of Risk

Authored by Charles Hugh Smith via OfTwoMinds blog,

All the risks generated by gambling with trillions of borrowed and leveraged dollars didn’t actually vanish; they were transferred by the Fed to the entire system.

The Federal Reserve is the nation’s Helicopter Parent, saving everyone from the consequences of their actions. We all know what happens when over-protective Helicopter Parents save their precious offspring from any opportunity to learn from mistakes and failures: they cripple their child’s ability to assess risk and learn from failure, guaranteeing fragility and catastrophically blind-to-risk decisions later in life.

Helicopter Parents generate a perfection of moral hazard, defined as there is no incentive to hedge risk because one is protected from its consequences. Moral hazard perversely increases the incentives to take on more risk because Mommy and Daddy (the Fed) will always save me / bail me out.

For example, when Mommy and Daddy make their reckless teen’s DUI charge go away, the teen’s already potent sense of godlike liberation from real-world consequences floats even higher. So next time the teen gets into his car drunk and takes his friends on a high-speed spin down Mulholland Drive, he loses control and kills everyone in the car–not just himself but those who trusted his warped sense of risk.

The Fed is the ultimate Helicopter Parent, protecting all the power players in our economy and society from the consequences of their risky actions. By crushing interest rates to near-zero, the Fed has perversely incentivized increasingly risky expansion of credit, and given the green light to there’s no limit, spend as much as you want government borrowing.

The Fed’s implicit promise to never let the stock market drop for more than a few days–the Fed Put–has incentivized every punter from billionaires to corporations to unemployed people with stimmy checks to max out their credit (or margin accounts) to increase their bets in the market casino.

The Fed has implicitly informed the bigger players that they can bet as big as they want because the Fed will always bail them out, transferring private losses to the public via Fed bailouts, lines of credit, backstops, etc.

The Fed has also signaled it will change the rules as needed to save its Players from loss. Mark-to-Market reveals the insolvency of the Players? Well, we’ll just get rid of that. All fixed! (heh)

Once the path of moral hazard has been taken, a fatal feedback loop takes hold: as reckless punters take on more risk to boost their gains, the fragility and brittleness of their positions increases geometrically. This soon endangers not just their own bets but the entire financial system, as it’s not just one punter who responds to the Fed’s Helicopter Parenting promise of no consequences for taking on more risk–every punter gets the green light to take on more risk because the Fed has our back.

Indeed, now that the Fed Put has been established as unbreakable, it would be irrational not to max out margin to increase one’s exposure to risky bets. And voila, margin debt has soared as the Fed has signaled its commitment to bail out every risky bet in the market casino.

Now that every punter has maxed out their margin account to increase their bets on markets lofting ever higher, the Fed has no choice but to increase the system’s moral hazard: as punters respond to the Fed’s incentives to take on more risk, the Fed has to expand its protection of punters from the consequences of their recklessness, which then increases their recklessness.

Nobody’s ever had a more generous and godlike Helicopter Parent than the Fed. But alas, just as actions have consequences (first-order effects), those consequences have consequences (second-order effects): in the case of the Fed, credit and markets, the second-order effects are as catastrophic as the drunken teen’s there’s no risk I can’t handle last race down Mulholland: all the risk that the Fed has supposedly dissipated into nothingness has been transferred to the entire financial system.

All the risks generated by gambling with trillions of borrowed and leveraged dollars didn’t actually vanish; they were transferred by the Fed to the entire system, which is itself now too fragile and brittle to withstand even the slightest intrusion of consequence.

The entire financial system is now careening down a treacherous stretch of curves and blind spots, absolutely confident that being dead-drunk on the Fed’s promise of never-ending gains in the market poses no risk whatsoever because the Fed has our back.

Unfortunately for the drunken teen, Mommy and Daddy could make the DUI go away but they can’t bring the lifeless bodies of those who reckoned their distorted view of risk was actually accurate back to life.

Once the fragile, brittle, disconnected-from-reality system the Fed has created crashes, the Fed will be as powerless as all the other grief-stricken Helicopter Parents to reverse the irreversible consequences of their meddling with moral hazard.

*  *  *

Of related interest:

The West’s Descent into ‘Cultural Revolution’ 1/18/19

Can’t Get You Out of My Head (2021) – Part 1 of 6– Adam Curtis documentary series which includes extensive footage and commentary on China’s Cultural Revolution.

Resistance, Revolution, Liberation: A Model for Positive Change (book)

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (book)

Inequality and the Collapse of Privilege (book)

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.

Tyler Durden
Mon, 04/12/2021 – 16:20

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City Council Member Owes $47K in Attorney Fees, for Losing Harassment Restraining Order Case Against Critics

From The Coast News:

A Vista Superior Court judge awarded more than $47,000 in attorneys’ fees to Noel Breen and Anthony “Tony” Bona on April 9 after ruling Carlsbad Councilwoman Cori Schumacher had violated their First Amendment rights.

Here are more details on the underlying case, which I blogged about a month ago:

Carlsbad City Council member Cori Schumacher got a temporary civil harassment restraining order against Carlsbad resident Tony Bona and former resident Noel Breen over their speech, essentially claiming their speech about her was threatening; they moved to dismiss under the California anti-SLAPP statute, and on Thursday, Superior Court Judge Cynthia Freeland granted the defendants’ motion (filed by lawyer Erik Jenkins). A bit of factual background, from The Coast News (Steve Puterski):

Court documents show Bona’s posts centered on rumors Schumacher didn’t actually live in the district she represented and should be disqualified from holding public office.

In relation to the rumor, Bona shared an image of a cartoon character from the children’s book “Where’s Waldo,” writing that instead of finding Waldo, residents should join him in playing a game of “Where’s Cori?”  The rumors about Schumacher’s residence have since been debunked….

Schumacher also claimed a YouTube video on Bona’s channel “Regular Guy in Carlsbad” constituted harassment. The video in question featured a clown face superimposed over Schumacher’s head during a Carlsbad City Council meeting and later exploded from “apparent confusion,” per Freeland’s ruling.

Here’s an excerpt from the tentative order, which Judge Freeland adopted as her final order:

[T]o obtain a CHRO [civil harassment restraining order], Schumacher must prove through clear and convincing evidence that she suffered … “unlawful violence, a credible threat of violence, or a knowing and willful course of conduct directed at a specific person that seriously annoys, or harasses the person, and that serves no legitimate purpose.” A “credible threat of violence” is a “knowing and willful statement or course of conduct that would place a reasonable person in fear for the person’s safety or the safety of the person’s immediate family, and that serves no legitimate purpose.” “Constitutionally protected activity is not included within the meaning of ‘course of conduct.”‘ …

{Schumacher [argues] that the request for a civil harassment restraining order “only arises from specific threats that were made to (a) force Petitioner to move out of her home, (b) surveil and stalk Petitioner using ‘high tech surveillance,’ and (c) threatening to blow Petitioner up with a bomb by posting a video of an explosion superimposed over her speaking.”} [But the speech here is not punishable threats.] Bona commented on a Facebook post about a council meeting after previously asking Schumacher to step down that she should get ready to “move” out of the city…. Bona posted about neighbors surveilling her [apparently in relation to the rumors that she didn’t actually live in the city -EV] alongside a picture of Waldo and the words “Where’s Cory?” … Bona added a brief animated explosion similar to a comic book (along with various other animations added to the video) over Schumacher’s face in the middle of a council meeting that appears to reference Schumacher’s head exploding from confusion.

Neither Bona’s “non-neighborly” comments on Nextdoor, his [California Public Records Act] request, nor his threat to sue over unanswered questions about COVID during a Facebook Live event provide context that would lead a reasonable person to believe that he intended to physically force Schumacher from her home, join forces with the neighborhood to unlawfully stalk her through high tech surveillance at the expense of her safety, or build a bomb. Simply calling these posts threats is not enough; some modicum of clear and convincing evidence is required to establish a prima facie case….

The result is the same as to Breen. Merely comparing Schumacher’s leadership to that of East Germany is not a threat to her safety, but rather pure political criticism. Although many people may disagree, or find such a comparison to be crude and offensive method of stating his opposition, even unpopular opinions are entitled to protection. Nothing in the August 9, 2020 blog post Schumacher submitted can reasonably be construed as a threat to her safety or other unconstitutional activity.

The same is true of the September 7, 2020 blog post Schumacher submits that repeatedly includes the term “GTFO.” … [T]he blog post itself notes it is “borrow[ing] a line from the Councilwoman” that she had put “squarely in the public domain”—an apparent reference to Schumacher’s August 21, 2020 Twitter post telling [Tony Krvaric (chairman of the San Diego Republican Party)] to take his “brand of white nationalist, regressive, traditionalist/authoritarian toxic & destructive politics” and “GTFO of North County.” Breen’s blog post thereafter uses GTFO not as a threat to Schumacher, but as a mantra with phrases like “Never again will ‘guilt by association’ carry the day GTFO” and “Never again will you be bullied into silence GTFO.”

[T]he Court does not consider whether Breen’s unpled conduct cornering Schumacher and monopolizing her time at political events in years past would independently entitle her to a CHRO. But even if the Court considers the evidence for the purpose of putting the pleaded allegations (Breen’s blog) in context, this evidence simply does not color these posts from a year later as threats that Breen would physically force Schumacher from her home or otherwise put her in physical danger. The only reasonable interpretation of these posts is political commentary, not personal threats….

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