“We’re On A Very Dangerous Path” – Pelosi’s Page-Ripping ‘Resistance’ Is Harbinger Of Things To Come

“We’re On A Very Dangerous Path” – Pelosi’s Page-Ripping ‘Resistance’ Is Harbinger Of Things To Come

Authored by Michael Snyder via TheMostImportantNews.com,

It is a rare thing to witness a truly iconic moment happen on live television, but that is precisely what tens of millions of Americans had the opportunity to do on Tuesday night. At the conclusion of President Trump’s State of the Union address, House Speaker Nancy Pelosi ripped her copy of Trump’s speech in half in front of a nationwide audience. We have never seen anything like that before in the entire history of this country, but of course so many unprecedented things have taken place during Trump’s presidency. Pelosi is claiming that she did not plan in advance to rip the speech in half, and at that moment she probably wasn’t doing much thinking at all, but it is a moment that will live in all of our memories for the rest of our lives. Pelosi shocked the entire nation by tearing the speech in two, but more importantly I believe that her action was a perfect metaphor for what is about to happen to America.

We are more deeply divided than we have ever been, and during this election season I believe that we will see very frightening eruptions of anger and frustration all across the United States.

Nobody expected Trump and Pelosi to be friendly with one another on Tuesday night, and Trump immediately made national headlines when he refused to shake Pelosi’s hand

Pelosi omitted the customary language about it being a high privilege and a distinct honor to introduce the president. Trump then handed the traditional copies of his speech to Vice President Mike Pence and to Pelosi, but when she reached out to shake his hand, he turned his back on her.

If you have not seen video of that moment yet, you can watch it happen right here.

Considering the fact that Pelosi has been leading the charge to impeach Trump for the last several months, it really wasn’t a surprise that he didn’t want to shake her hand.

But when Pelosi ripped up Trump’s speech in front of the entire nation right after Trump concluded his remarks, it surprised everyone. The following comes from USA Today

In a remarkable display, House Speaker Nancy Pelosi tore up the text of Trump’s speech and tossed it aside before Trump had left. Pelosi later waved the ripped pieces in the air, and audience members left in the chamber and public-viewing gallery could see Trump’s prominent signature.

I think that Pelosi will later deeply regret doing that, but I also believe that it will go down as one of the most iconic moments of 2020.

Following the speech a reporter asked her why she ripped Trump’s speech in half, and this was her reply

“Because it was the courteous thing to do… It was the courteous thing to do considering the alternative.”

So precisely what would “the alternative” have been?

I wish that somebody would have asked Pelosi that question.

Subsequently, the official White House Twitter account harshly criticized Pelosi for her unprecedented gesture…

Speaker Pelosi just ripped up:

One of our last surviving Tuskegee Airmen.

The survival of a child born at 21 weeks.

The mourning families of Rocky Jones and Kayla Mueller.

A service member’s reunion with his family.

That’s her legacy.

Of course the left was absolutely thrilled by what Pelosi did, and they can’t say enough good things about her right now.

Sadly, this is yet another example of how deeply divided we are as a nation.

When Pelosi tore those pieces of paper in half, I believe that it was symbolic of what will happen to our entire country.

In other words, I believe that it is possible that we may have just witnessed what is known as a “harbinger”. The following is how that word is defined by Merriam-Webster’s dictionary

something that foreshadows a future event something that gives an anticipatory sign of what is to come

During the 2020 election season, America is literally going to be torn in half. Right now, many Democrats absolutely hate President Trump, his family and his supporters, and that hatred is only going to intensify as we get closer to next November.

On the other side, many Republicans absolutely hate Nancy Pelosi, Chuck Schumer, Joe Biden, Bernie Sanders and all of their supporters, and that hatred will also intensify as we get closer to next November.

No matter who wins the election, the coming months are not going to be pretty. In fact, I believe that we are about to witness the most chaotic election season in American history.

And once the election is over, a large portion of the country will not be willing to accept the result. So I actually expect the aftermath of the election to be even worse than the election season itself. We are on a very dangerous path, and I cringe when I think about what is coming.

To get an idea of where we stand at this moment, just consider the results of a recent Gallup survey

According to Gallup, the 82-point partisan gap between Republican approval of the job Trump is doing (89%) and Democratic approval (7%) is the largest in the 74-year history of the poll. That gap breaks the previous record of 79 points that Trump set in his second year in office, in 2018. (Trump’s first year in office, 2017, was the sixth most partisan in history.)

But of course this trend did not begin when Trump entered the White House.

In fact, Gallup says that the “10 most partisan years in history” have all been within the past 16 years

The 10 most partisan years in history have all occurred in the last 16 years, as measured by Gallup. Those 10 years include years from the presidencies of George W. Bush and Barack Obama as well as Trump.

“There have always been partisan gaps in ratings of president, just not to the degree seen over the past two decades,” wrote Gallup’s Jeffrey M. Jones in an analysis of the data.

No matter who wins next November, it isn’t going to heal this very deep divide.

Instead, we are about to see America ripped apart like never before.

So even though Nancy Pelosi didn’t even realize what she was doing, I think that she perfectly foreshadowed what is about to happen.

Very dark days are approaching, and the United States of America will never be the same again.


Tyler Durden

Wed, 02/05/2020 – 13:50

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L.A. Politicians Want To Seize Private Apartment Building to Prevent Rent Increases

Los Angeles politicians will make housing affordable, by force if necessary.

On Friday, City Councilmember Gil Cedillo introduced a motion that asks city staff to draft plans for using eminent domain to seize Hillside Villa Apartments, a 124-unit, privately-owned development in the city’s Chinatown neighborhood to avoid rent increases at the property.

The property is currently under an affordability covenant that requires its owner to rent out a number of its units at below-market rates. That covenant is set to expire soon, meaning rents on some 59 units will increase to market rates—which means rent hikes of up to $1,000 per unit.

“We think it is important enough that we need to take action to preserve those units. We don’t want to generate more homeless people,” Conrado Terrazas Cross, Cedillo’s communications director, tells Reason, saying that many tenants would not be able to afford the coming rent increases.

“I think it’s a brilliant idea but I need to know: Are we in Cuba or Venezuela?” says Tom Botz, the L.A.-area developer who owns the building, about the proposal to seize his property.

Botz tells Reason he purchased the development company that built Hillside Villa roughly 20 years ago. The building’s construction had been financed by a number of government grants and loans, including a $5.4 million loan from Los Angeles’ since-abolished Community Redevelopment Agency in 1986.

A condition of that loan was that the developer rent out units in the building at below-market rates for 30 years. Other government grants and loans that helped finance the building came with their own specific affordability requirements.

The affordability requirements from the redevelopment loan were supposed to expire in June 2019. Beginning in May 2018, tenants in Hillside Villa started to receive notices that their below-market rents would be increasing in a year’s time. In March 2019, tenants were given the option of signing new leases at the increased rates or face eviction.

In June 2019, several tenants, with the assistance of the Legal Aid Foundation of Los Angeles and the National Housing Law Project, sued Botz, claiming the eviction notices tenants received did not give them proper notice.

That lawsuit was dropped in July after a compromise was tentatively reached in which Botz agreed to extend the affordability covenant on his property for another 10 years in exchange for the city wiping away the debt he still owed on the redevelopment loan.

Botz eventually decided to not go through with that deal. He says that he had no hope that once the extended affordability requirement expired, activists and the city wouldn’t just try to pressure him again into maintaining below-market rents at the building.

The past six months have seen bitter feuding between Botz, tenant organizers, and Cedillo’s office. Activists picketed his home, according to The Malibu Times.

Cedillo has accused Botz of reneging on their agreement to not raise rents. Botz contents nothing concrete was ever agreed to. The dispute has now culminated in Cedillo asking the city to seize Botz’s property.

Extreme as it might be, this use of eminent domain could well be constitutional says Jim Burling of the Pacific Legal Foundation, a public interest law firm.

“It’s theoretically possible for the city to thread the needle to make this work constitutionally,” Burling tells Reason, saying the government would probably be within its rights to condemn a property for the purpose of preserving affordable housing.

But the devil is in the details, he says. “If [the city] get[s] sloppy or they get greedy and don’t want to pay what this property is actually worth, there could be some serious constitutional challenges.”

Regardless of whether this seizure meets constitutional muster, it will certainly erode property rights, says Burling.

“Why are you going to spend 30 years maintaining a property and keeping it in good shape if you know that at the end of the day, the government can basically rip up the agreement?” he says.

Terrazas Cross says that eminent domain could be deployed to seize other properties where affordability covenants are set to expire.

Cedillo’s motion asks the city’s Bureau of Engineering to consult with the city attorney and then prepare a report on seizing Hillside Villa within 30 days. Botz says he will fight any effort to seize his property in court.

Ideally, tenants currently receiving subsidized rents at Hillside Villa would be able to find adequate market-rate housing, even if rents at their current residence shot up. That they can’t is a product of Los Angeles not allowing enough construction of new housing at rates that would keep rents stable over time.

The solution to that, however, would be allowing more private housing construction. Instead, the city is now looking at just taking over the limited number of private developments government regulation has allowed to be built.

In 2019, the Los Angeles City Council voted unanimously to oppose SB 50, a state bill that would have legalized four-unit homes on most residential land and mid-rise apartment buildings near major transit stops and job centers.

Should the city go down the path of seizing private developments to preserve units, it will discourage investment in developing new housing.

The Los Angeles Times reports that Cedillo’s motion will now head to the city council’s housing committee, which he chairs.

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Trump Bashes Socialism While Endorsing a Status Quo Socialism of His Own

Most people probably wouldn’t think of President Donald Trump as a socialist. At last night’s State of the Union address, he repeatedly inveighed against the ideology, in both foreign and domestic settings. He touted the diplomatic coalition aligned “against the socialist dictator of Venezuela, Nicolás Maduro,” who he cast as an “illegitimate ruler” and “a tyrant who brutalizes his people.” He warned of an impending “socialist takeover of our health care system,” criticized Democrats who supported a government-run plan, and promised that he “will never let socialism destroy American health care.” 

“Socialism destroys nations,” he said. “But always remember: Freedom unifies the soul.” 

There can be no doubt of Maduro’s tyranny, and when the leading proponent of Medicare for All is a self-declared democratic socialist, it is more than fair to cast single-payer health care, and its backers in Congress, in this light as well. With Sen. Bernie Sanders (I–Vt.) currently a front-runner for the Democratic presidential nomination, Trump was previewing a likely attack strategy for this year’s presidential contest, and attempting to exploit a growing rift in Democratic Party politics over its leftward drift. 

There are sound political reasons for Trump to adopt this strategy. Polls show that Republican voters are widely opposed to socialism, and although Democrats are substantially more favorable, they are, relatively speaking, more divided. The presidential campaigns of both Sen. Kamala Harris (D–Calif.) and Sen. Elizabeth Warren (D–Mass.) showed how practical questions about how to pay for and implement Medicare for All can drag down presidential campaigns, even in a nominally receptive Democratic primary race. (Sanders, for his part, has largely dismissed such questions as impossible to answer.) Trump is on solid political ground running against America’s nascent socialist movement and its primary project, the remaking of the nation’s health care system. 

Yet Trump’s fervent anti-socialism makes for an odd fit with much of the rest of his speech, which boasted of various spending and infrastructure projects, along with a new branch of the military, Space Force. The disjointedness was particularly notable in his dual commitment to “always protect your Medicare” and “always protect your Social Security,” a line punctuated by a final “always,” as if to say that old-age entitlements are forever sacred. 

Although Trump recently suggested, in a brief and somewhat vague exchange, that the programs might eventually be up for some sort of cost-saving reform, he has historically positioned himself as a defender of those programs. As with his attacks on socialism, there is a clear political logic to this stance: The programs are popular, and they benefit seniors, who make up a disproportionate share of Trump’s voter base. 

Trump’s speech was a warning to these voters that Democrats would threaten their benefits by extending them to outsiders, in particular to illegal immigrants. Democratic proposals, he said, “would raid the Medicare benefits of our seniors and that our seniors depend on, while acting as a powerful lure for illegal immigration.” (Nevermind that California, which he cited as an example, spends only a tiny fraction of its gargantuan health care budget on undocumented immigrants.) 

Yet what are Medicare and Social Security except socialist programs limited by age requirements? They are not mandatory savings systems, as many believe, but direct transfer programs in which young workers fund the benefits of older retirees; on average, today’s seniors will receive benefits that far exceed what they paid in. Indeed, the mismatch between expected revenues and the expected cost of paying for those benefits is why both programs have substantial long-term shortfalls, and why they are, in tandem, the biggest drivers of long-term federal debt. 

Trump isn’t a democratic socialist in the Sanders mold. But by casting Medicare and Social Security as sacrosanct, as untouchable foundations of the American project, Trump is endorsing a kind of debt-funded socialism for seniors, in which the way to access the benefits of massive government welfare programs is to turn 65. It’s no wonder, really, that Bernie Sanders’ base of support is younger voters; Sanders is promising, in many ways, to expand the sort of benefits that Trump wants to protect for seniors to the young and middle-aged. 

There are obvious policy problems with Trump’s brand of big-government anti-socialism, chief among them that it ignores the costs of running an entitlement system that was designed under wildly different demographic assumptions. 

But the rise of Sanders specifically and youth socialism generally is a reminder that there are serious political ramifications as well. The seniors-only entitlement state that Trump has vowed to preserve has created an expensively protected beneficiary class. Eventually, those who are not part of that class will want benefits of their own, at even greater expense. So it’s true that Sanders’ particular brand of socialism is especially unaffordable and that it would exacerbate the fiscal problems associated with today’s entitlement system. But Trump’s preferred alternative is a politically convenient status quo that is destructive and unsustainable on its own terms. 

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A Group of Prosecutors Want SCOTUS To Save Death Row Inmate James Dailey

James Dailey, a Florida death row inmate, has gained an interesting group of supporters. Eight current and former prosecutors and attorneys general, some of whom have stood behind death sentences, filed a brief asking the U.S. Supreme Court to review Dailey’s death sentence. 

As Reason previously reported, Dailey was sentenced to death over the murder of Shelly Boggio. Boggio’s body was found on May 6, 1985. She was naked and her body had been stabbed multiple times. Dailey’s former roommate, Jack Pearcy, who had actively tried to spend intimate time with the Boggio, admitted to stabbing her at least once and provided details of the crime to investigators. He owned a knife consistent with the stab wounds and was the only person identified by eyewitness the night she was murdered. Now serving a life sentence for murder, he has also confessed that he was solely responsible for the crime at least four times. Twice he’s told other inmates that Dailey was innocent.

Dailey was ultimately convicted based on the testimony of unreliable jailhouse informants like Paul Skalnik.

Skalnik is recognized for being one of the most prolific and egregious jailhouse informants in history. Not only is Skalnik’s truthfulness still being questioned to this day, but it is apparent that his cooperation in convicting Dailey earned him a reward. Though he promised the jury he was receiving nothing for his testimony, he was released from jail just five days after Dailey was sentenced to death. A Florida Parole and Probation Commission memo cited his “cooperation with the State Attorney’s Office in the first-degree murder trial” as the reason for his early release despite his parole officer already labeling him a flight risk and a danger.

This was not the first time Skalnik was rewarded for his cooperation. Prosecutors once dismissed a child-sex charge involving a 12-year-old girl in exchange for his testimony, a fact withheld from the jury in Dailey’s case.

The eight prosecutors and attorney generals who signed the amicus brief in support of reviewing Dailey’s case believe prosecutors took on too much risk by relying on the “inherently unreliable” testimonies of jailhouse informants, especially when no physical evidence tied Dailey to the crime. 

“We know, as former or current prosecutors and attorneys general, the inherent risk that jailhouse informants give false testimony to gain personal benefits,” they wrote. “Because informant testimony is inherently unreliable, prosecutors have an obligation to present an accurate and complete picture of the benefits received so that jurors can consider in context the credibility to which the testimony is entitled.”

The brief cites two sources showing jailhouse testimony to be the leading factor in convictions for death row cases that were eventually exonerated. A Center on Wrongful Convictions study from 2005 found that of the 111 exonerations carried out following the re-establishment of the death penalty in 1973, jailhouse informants had accounted for 45 percent of the wrongful convictions.

“The use of jailhouse informants like [Skalnik] is one of the great abuses in criminal trials across America,” Bennett Gershman tells Reason. Gershman, who was a New York prosecutor for ten years and is now a professor at Pace Law School and a leading voice on prosecutorial misconduct, signed the brief.

Identifying Skalnik as the “worst of the worst” of jailhouse informants, Gershman says his inclusion made a “mockery” of the idea that Dailey received a fair trial. When asked what could be done to avoid similar missteps in the future, Gershman notes that the jury is predisposed to believe the prosecutor’s evidence. Because of this, prosecutors have the responsibility of making sure they are using credible witnesses and presenting reliable evidence. Corroboration of the jailhouse informant’s testimony, he says, would help.

Gershman believes if Florida Gov. Ron DeSantis, a Republican, looks “extra closely” at the facts of the case, he too would conclude that the case against Dailey was a “travesty of justice.” He adds that he’s always believed that the death penalty was “an ineffective punishment.”

“No one should be put to death unless we are absolutely certain that he committed the crime and that he committed it with the intent which is necessary before we find him guilty and sentence him to death,” former Florida prosecutor Bruce Jacob says. He also signed the brief. “In this case, the facts are not clear. It’s even possible that he did not commit the crime.”

Harry Shorstein, another Florida prosecutor who signed the brief, previously wrote in The Miami Herald that Dailey should receive executive clemency before it was too late. He argued that the jury was never given the full picture of Skalnik’s cooperation with prosecutors or even his own criminal past.

Dailey’s supporters also include the Innocence Project of Florida and an interfaith coalition that recently sent another letter to the governor asking for clemency.

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L.A. Politicians Want To Seize Private Apartment Building to Prevent Rent Increases

Los Angeles politicians will make housing affordable, by force if necessary.

On Friday, City Councilmember Gil Cedillo introduced a motion that asks city staff to draft plans for using eminent domain to seize Hillside Villa Apartments, a 124-unit, privately-owned development in the city’s Chinatown neighborhood to avoid rent increases at the property.

The property is currently under an affordability covenant that requires its owner to rent out a number of its units at below-market rates. That covenant is set to expire soon, meaning rents on some 59 units will increase to market rates—which means rent hikes of up to $1,000 per unit.

“We think it is important enough that we need to take action to preserve those units. We don’t want to generate more homeless people,” Conrado Terrazas Cross, Cedillo’s communications director, tells Reason, saying that many tenants would not be able to afford the coming rent increases.

“I think it’s a brilliant idea but I need to know: Are we in Cuba or Venezuela?” says Tom Botz, the L.A.-area developer who owns the building, about the proposal to seize his property.

Botz tells Reason he purchased the development company that built Hillside Villa roughly 20 years ago. The building’s construction had been financed by a number of government grants and loans, including a $5.4 million loan from Los Angeles’ since-abolished Community Redevelopment Agency in 1986.

A condition of that loan was that the developer rent out units in the building at below-market rates for 30 years. Other government grants and loans that helped finance the building came with their own specific affordability requirements.

The affordability requirements from the redevelopment loan were supposed to expire in June 2019. Beginning in May 2018, tenants in Hillside Villa started to receive notices that their below-market rents would be increasing in a year’s time. In March 2019, tenants were given the option of signing new leases at the increased rates or face eviction.

In June 2019, several tenants, with the assistance of the Legal Aid Foundation of Los Angeles and the National Housing Law Project, sued Botz, claiming the eviction notices tenants received did not give them proper notice.

That lawsuit was dropped in July after a compromise was tentatively reached in which Botz agreed to extend the affordability covenant on his property for another 10 years in exchange for the city wiping away the debt he still owed on the redevelopment loan.

Botz eventually decided to not go through with that deal. He says that he had no hope that once the extended affordability requirement expired, activists and the city wouldn’t just try to pressure him again into maintaining below-market rents at the building.

The past six months have seen bitter feuding between Botz, tenant organizers, and Cedillo’s office. Activists picketed his home, according to The Malibu Times.

Cedillo has accused Botz of reneging on their agreement to not raise rents. Botz contents nothing concrete was ever agreed to. The dispute has now culminated in Cedillo asking the city to seize Botz’s property.

Extreme as it might be, this use of eminent domain could well be constitutional says Jim Burling of the Pacific Legal Foundation, a public interest law firm.

“It’s theoretically possible for the city to thread the needle to make this work constitutionally,” Burling tells Reason, saying the government would probably be within its rights to condemn a property for the purpose of preserving affordable housing.

But the devil is in the details, he says. “If [the city] get[s] sloppy or they get greedy and don’t want to pay what this property is actually worth, there could be some serious constitutional challenges.”

Regardless of whether this seizure meets constitutional muster, it will certainly erode property rights, says Burling.

“Why are you going to spend 30 years maintaining a property and keeping it in good shape if you know that at the end of the day, the government can basically rip up the agreement?” he says.

Terrazas Cross says that eminent domain could be deployed to seize other properties where affordability covenants are set to expire.

Cedillo’s motion asks the city’s Bureau of Engineering to consult with the city attorney and then prepare a report on seizing Hillside Villa within 30 days. Botz says he will fight any effort to seize his property in court.

Ideally, tenants currently receiving subsidized rents at Hillside Villa would be able to find adequate market-rate housing, even if rents at their current residence shot up. That they can’t is a product of Los Angeles not allowing enough construction of new housing at rates that would keep rents stable over time.

The solution to that, however, would be allowing more private housing construction. Instead, the city is now looking at just taking over the limited number of private developments government regulation has allowed to be built.

In 2019, the Los Angeles City Council voted unanimously to oppose SB 50, a state bill that would have legalized four-unit homes on most residential land and mid-rise apartment buildings near major transit stops and job centers.

Should the city go down the path of seizing private developments to preserve units, it will discourage investment in developing new housing.

The Los Angeles Times reports that Cedillo’s motion will now head to the city council’s housing committee, which he chairs.

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Trump Bashes Socialism While Endorsing a Status Quo Socialism of His Own

Most people probably wouldn’t think of President Donald Trump as a socialist. At last night’s State of the Union address, he repeatedly inveighed against the ideology, in both foreign and domestic settings. He touted the diplomatic coalition aligned “against the socialist dictator of Venezuela, Nicolás Maduro,” who he cast as an “illegitimate ruler” and “a tyrant who brutalizes his people.” He warned of an impending “socialist takeover of our health care system,” criticized Democrats who supported a government-run plan, and promised that he “will never let socialism destroy American health care.” 

“Socialism destroys nations,” he said. “But always remember: Freedom unifies the soul.” 

There can be no doubt of Maduro’s tyranny, and when the leading proponent of Medicare for All is a self-declared democratic socialist, it is more than fair to cast single-payer health care, and its backers in Congress, in this light as well. With Sen. Bernie Sanders (I–Vt.) currently a front-runner for the Democratic presidential nomination, Trump was previewing a likely attack strategy for this year’s presidential contest, and attempting to exploit a growing rift in Democratic Party politics over its leftward drift. 

There are sound political reasons for Trump to adopt this strategy. Polls show that Republican voters are widely opposed to socialism, and although Democrats are substantially more favorable, they are, relatively speaking, more divided. The presidential campaigns of both Sen. Kamala Harris (D–Calif.) and Sen. Elizabeth Warren (D–Mass.) showed how practical questions about how to pay for and implement Medicare for All can drag down presidential campaigns, even in a nominally receptive Democratic primary race. (Sanders, for his part, has largely dismissed such questions as impossible to answer.) Trump is on solid political ground running against America’s nascent socialist movement and its primary project, the remaking of the nation’s health care system. 

Yet Trump’s fervent anti-socialism makes for an odd fit with much of the rest of his speech, which boasted of various spending and infrastructure projects, along with a new branch of the military, Space Force. The disjointedness was particularly notable in his dual commitment to “always protect your Medicare” and “always protect your Social Security,” a line punctuated by a final “always,” as if to say that old-age entitlements are forever sacred. 

Although Trump recently suggested, in a brief and somewhat vague exchange, that the programs might eventually be up for some sort of cost-saving reform, he has historically positioned himself as a defender of those programs. As with his attacks on socialism, there is a clear political logic to this stance: The programs are popular, and they benefit seniors, who make up a disproportionate share of Trump’s voter base. 

Trump’s speech was a warning to these voters that Democrats would threaten their benefits by extending them to outsiders, in particular to illegal immigrants. Democratic proposals, he said, “would raid the Medicare benefits of our seniors and that our seniors depend on, while acting as a powerful lure for illegal immigration.” (Nevermind that California, which he cited as an example, spends only a tiny fraction of its gargantuan health care budget on undocumented immigrants.) 

Yet what are Medicare and Social Security except socialist programs limited by age requirements? They are not mandatory savings systems, as many believe, but direct transfer programs in which young workers fund the benefits of older retirees; on average, today’s seniors will receive benefits that far exceed what they paid in. Indeed, the mismatch between expected revenues and the expected cost of paying for those benefits is why both programs have substantial long-term shortfalls, and why they are, in tandem, the biggest drivers of long-term federal debt. 

Trump isn’t a democratic socialist in the Sanders mold. But by casting Medicare and Social Security as sacrosanct, as untouchable foundations of the American project, Trump is endorsing a kind of debt-funded socialism for seniors, in which the way to access the benefits of massive government welfare programs is to turn 65. It’s no wonder, really, that Bernie Sanders’ base of support is younger voters; Sanders is promising, in many ways, to expand the sort of benefits that Trump wants to protect for seniors to the young and middle-aged. 

There are obvious policy problems with Trump’s brand of big-government anti-socialism, chief among them that it ignores the costs of running an entitlement system that was designed under wildly different demographic assumptions. 

But the rise of Sanders specifically and youth socialism generally is a reminder that there are serious political ramifications as well. The seniors-only entitlement state that Trump has vowed to preserve has created an expensively protected beneficiary class. Eventually, those who are not part of that class will want benefits of their own, at even greater expense. So it’s true that Sanders’ particular brand of socialism is especially unaffordable and that it would exacerbate the fiscal problems associated with today’s entitlement system. But Trump’s preferred alternative is a politically convenient status quo that is destructive and unsustainable on its own terms. 

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As Rich Dump To The Poor, Tesla Daytrading Millennials Dream Of Untold Riches

As Rich Dump To The Poor, Tesla Daytrading Millennials Dream Of Untold Riches

If you have found yourself recently wondering what stage of this record-long, Fed-induced bull market we are in, here is the answer: the “dump to the masses” stage. Indeed, we are in that delightful time where the hype surrounding the stock market, as evidenced by such totally normal moves as cash furnace Tesla doubling in just a few days, has hit a fever pitch. And this, as Goldman points out, is always the time when the “smart money” dumps their equities to the unsuspecting and excitable, yet horribly uninformed, retail crowd. 

The evidence has been trickling in every day.

For instance, recently released data from the Federal Reserve Board shows us a couple of trends that are worth keeping an eye on. The two following charts indicate that as recessions begin, the top 1% begins to sell their holdings, while the bottom 90% continues to try and “buy the dip”.

The first chart shows the top 1% dumping as the market falls entering recession. Of late, we can see that selling has happened in spurts by the top 1%:

For the bottom 90% it’s just the opposite: the vast majority of unsophisticated retail investor start to chase momentum at the worst possible time, as they buy stocks en masse just as a recession begins, which in turn craters the market. In the Goldman chart below, we can see that the share of equities owned by the 90% jumps just as recession begin.

In laymens terms, the rich dump their stock to the poor just before the market crashes.

The technical term is “distribution.”

And when it comes to other signs of both recession and “dumping to the bottom 90%” as of late, there’s plenty.

Despite the stock market rallying to new heights, sectors like automotive have been mired in recession for the better part of the last 18 months globally. Recent housing data also suggests that we could be on our way to recession in 2020, as we have pointed out. We also pointed out recently that 9 states were heading to recession over the course of just six months – numbers that we haven’t seen since the 2008 financial crisis. 

There also remains the existential threat of the coronavirus, whose economic damage won’t be knownfor weeks. It has, however, put a damper on the newly signed U.S./China trade deal, paralyzing the country of China just days after that volatility was putting downward pressure on the market (if you can even call it that). 

Going back to Tesla again, it was posted on Robintrack , a site that monitors the buying and selling habits of Robinhood users, that 21,000 new users on Robinhood have bought Tesla stock since the beginning of February during the stock’s wild ascent. Of course, Robinhood users – whose frontrun orderflow has made the CEOs of some of the most notorious HFT companies in the world unbelievably rich – are about as “retail” as it gets.

Case in point: the following video posted on T`witter, shows a young girl claiming she “paid off her student loans” by trading stocks while in class. The video then shows her, in class, on Thinkorswim, trading. She also shows a photo of her P/L, where its clear that she owns both Microsoft and (of course) Tesla.

“This is how to make money in school as a college student,” the millennial daytrader cheerfully says, before directing people to open a TD account and download Thinkorswim (perhaps she is an influencer?) Alas, we have a feeling this video will soon be followed up of her crying into a Starbucks frappuccino, just as soon as Tesla flash crashes and has a circuit breaker halt lower.

We’ll keep an eye out for it. Until then, we hope to have answered the question “what stage of the cycle is this”

 


Tyler Durden

Wed, 02/05/2020 – 13:30

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

Liberal White Women Pay $2,500 To Be Lectured About How Racist They Are

Liberal White Women Pay $2,500 To Be Lectured About How Racist They Are

Authored by Paul Joseph Watson via Summit News,

Liberal white women across America are paying $2,500 to attend dinners at which they are lectured by two non-white women about how racist they are.

Yes, really.

The Guardian reports on Race to Dinner, a scheme where co-founders Regina Jackson, who is black, and Saira Rao, who “identifies” as Indian-American, make white guilt-riddled rich white women admit to their subconscious bigotry.

“Recently, I have been driving around, seeing a black person, and having an assumption that they are up to no good,” said Alison Gubser.

“Immediately after I am like, that’s no good! This is a human, just doing their thing. Why do I think that?”

Maybe she’s been reading too many FBI crime statistics.

Participants were also asked, “What was a racist thing you did recently?”

Jess Campbell-Swanson struggled to prostrate herself adequately, stuttering, “I want to hire people of color. Not because I want to be … a white savior. I have explored my need for validation … I’m working through that … Yeah. Um … I’m struggling,” before giving up.

She subsequently committed to writing a journal to note down “thoughts that could be considered racist.”

Another woman, Morgan Richards, admitted that she was still potentially racist despite adopting two black children. When someone patronizingly labeled her a ‘white savior’ for adopting them, Richards responded, “What I went through to be a mother, I didn’t care if they were black.”

“So, you admit it is stooping low to adopt a black child?” Rao challenged her, to which Richards responded by accepting that the undertone of her statement was “racist.”

The organizers say the events are proving extremely popular and that 15 dinners have been held so far (total cost $37,500).

“I understand polls show liberal white women are the only racial group on the planet who view their own in-group negatively but dropping $2,500 on a dinner just to wallow in ethnomasochism seems like a bit much,” commented Chris Menahan.

One respondent on Twitter commented, “ladies you can also pay me 2500 american dollars to come to your home, eat all your food, and insult you.”

Clown world strikes again.

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Tyler Durden

Wed, 02/05/2020 – 13:10

via ZeroHedge News https://ift.tt/3bh7wjI Tyler Durden

A Group of Prosecutors Want SCOTUS To Save Death Row Inmate James Dailey

James Dailey, a Florida death row inmate, has gained an interesting group of supporters. Eight current and former prosecutors and attorneys general, some of whom have stood behind death sentences, filed a brief asking the U.S. Supreme Court to review Dailey’s death sentence. 

As Reason previously reported, Dailey was sentenced to death over the murder of Shelly Boggio. Boggio’s body was found on May 6, 1985. She was naked and her body had been stabbed multiple times. Dailey’s former roommate, Jack Pearcy, who had actively tried to spend intimate time with the Boggio, admitted to stabbing her at least once and provided details of the crime to investigators. He owned a knife consistent with the stab wounds and was the only person identified by eyewitness the night she was murdered. Now serving a life sentence for murder, he has also confessed that he was solely responsible for the crime at least four times. Twice he’s told other inmates that Dailey was innocent.

Dailey was ultimately convicted based on the testimony of unreliable jailhouse informants like Paul Skalnik.

Skalnik is recognized for being one of the most prolific and egregious jailhouse informants in history. Not only is Skalnik’s truthfulness still being questioned to this day, but it is apparent that his cooperation in convicting Dailey earned him a reward. Though he promised the jury he was receiving nothing for his testimony, he was released from jail just five days after Dailey was sentenced to death. A Florida Parole and Probation Commission memo cited his “cooperation with the State Attorney’s Office in the first-degree murder trial” as the reason for his early release despite his parole officer already labeling him a flight risk and a danger.

This was not the first time Skalnik was rewarded for his cooperation. Prosecutors once dismissed a child-sex charge involving a 12-year-old girl in exchange for his testimony, a fact withheld from the jury in Dailey’s case.

The eight prosecutors and attorney generals who signed the amicus brief in support of reviewing Dailey’s case believe prosecutors took on too much risk by relying on the “inherently unreliable” testimonies of jailhouse informants, especially when no physical evidence tied Dailey to the crime. 

“We know, as former or current prosecutors and attorneys general, the inherent risk that jailhouse informants give false testimony to gain personal benefits,” they wrote. “Because informant testimony is inherently unreliable, prosecutors have an obligation to present an accurate and complete picture of the benefits received so that jurors can consider in context the credibility to which the testimony is entitled.”

The brief cites two sources showing jailhouse testimony to be the leading factor in convictions for death row cases that were eventually exonerated. A Center on Wrongful Convictions study from 2005 found that of the 111 exonerations carried out following the re-establishment of the death penalty in 1973, jailhouse informants had accounted for 45 percent of the wrongful convictions.

“The use of jailhouse informants like [Skalnik] is one of the great abuses in criminal trials across America,” Bennett Gershman tells Reason. Gershman, who was a New York prosecutor for ten years and is now a professor at Pace Law School and a leading voice on prosecutorial misconduct, signed the brief.

Identifying Skalnik as the “worst of the worst” of jailhouse informants, Gershman says his inclusion made a “mockery” of the idea that Dailey received a fair trial. When asked what could be done to avoid similar missteps in the future, Gershman notes that the jury is predisposed to believe the prosecutor’s evidence. Because of this, prosecutors have the responsibility of making sure they are using credible witnesses and presenting reliable evidence. Corroboration of the jailhouse informant’s testimony, he says, would help.

Gershman believes if Florida Gov. Ron DeSantis, a Republican, looks “extra closely” at the facts of the case, he too would conclude that the case against Dailey was a “travesty of justice.” He adds that he’s always believed that the death penalty was “an ineffective punishment.”

“No one should be put to death unless we are absolutely certain that he committed the crime and that he committed it with the intent which is necessary before we find him guilty and sentence him to death,” former Florida prosecutor Bruce Jacob says. He also signed the brief. “In this case, the facts are not clear. It’s even possible that he did not commit the crime.”

Harry Shorstein, another Florida prosecutor who signed the brief, previously wrote in The Miami Herald that Dailey should receive executive clemency before it was too late. He argued that the jury was never given the full picture of Skalnik’s cooperation with prosecutors or even his own criminal past.

Dailey’s supporters also include the Innocence Project of Florida and an interfaith coalition that recently sent another letter to the governor asking for clemency.

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Carrie Lam Caves, Closes All Hong Kong Crossings Into Mainland China

Carrie Lam Caves, Closes All Hong Kong Crossings Into Mainland China

Carrie Lam finally knows what it feels like to be brought to her knees by the people of Hong Kong.

After successfully resisting the pro-democracy movement’s demands (aside from withdrawing the hated extradition bill, a decision that likely had Beijing’s backing) for months and months, Lam lasted all of about two days after thousands of health-care workers decided to go on strike in the face of a worsening epidemic poised to be the worst infectious outbreak in the city since SARS (SARS killed 300 after ripping through the city’s financial district).

On Wednesday, Lam said all travelers from mainland China, including local residents re-entering the country, will be required to be quarantined for 14 days. The new policy takes effect on Saturday, giving travelers 48 hours to figure out where they need to be.

However, Lam didn’t explain how the ‘quarantine’ will be enforced, sowing doubts about the city’s ability to forcibly house that many people, particularly after protesters persuaded the city government not to use a newly built public housing project to isolate infected patients.

Lam also apologized for a controversial comment made on Tuesday when she chided public officials not to wear masks except under dire circumstances to help conserve supplies.

The strikers forced Hong Kong’s hospitals to cut services for a second day as they demanded that Carrie Lam acquiesce and shut the border with the mainland.

HK confirmed its first coronavirus death on Tuesday – the second outside mainland China. That’s another reason why Lam’s government might have caved. On Tuesday and Wednesday, the city confirmed six new cases, increasing the total to 21. The three confirmed cases on Tuesday had no travel history.

“It is worrying…the coming 14 days will be key,” she added.

“The situation has entered another critical stage. After consulting medical experts, I am announcing the further reduction of cross-border traffic.”

The chief executive said the government would also suspend immigration services at Kai Tak Cruise Terminal and Ocean Terminal.

Lam said the city would set up a $1.28 billion (HK10 billion) fund to help combat the outbreak. She also begged citizens to “unite” to fight the outbreak, a reference to lingering protests and resentment between the people and the government (and particularly the police).

“We must unite and set aside our differences, so that we can win this war against the disease,” Lam said.

By folding, Lam is likely infuriating her backers on the mainland, including President Xi, who managed to ‘convince’ the WHO that China isn’t unsafe and that border closures and travel restrictions targeting Chinese citizens aren’t necessary.

Still, the news that China’s special administrative regions are joining the rest of the world in cutting ties to the mainland is hardly reassuring. But markets still look set to notch their first back-to-back gains in a week, even as quarantines are being set up on the Chinese base of iPhone maker Foxconn, at land borders with Hong Kong, on a cruise ship docked in Japan and US military bases.


Tyler Durden

Wed, 02/05/2020 – 12:50

via ZeroHedge News https://ift.tt/2S2EWuQ Tyler Durden