Indian Prime Minister Modi’s Lawless Reign of Terror

When Indian Prime Minister Narendra Modi promised to bring his Gujarat Model to the rest of the country, everyone thought he meant the pro-growth reforms that had allegedly done wonders for his home state’s economy. But recent events suggest that the real Gujarat Model that Modi had in mind was something else entirely: a government that looks the other way as private militants violently attack disfavored groups. It’s a model that infamously resulted in the slaughter of more than 1,000 men, women, and children, mostly Muslims, over the course of a few days in 2002 when Modi was the state’s chief minister.

Now Modi has done a mini-reenactment at Jawaharlal Nehru University (JNU), a prestigious college in the heart of New Delhi where the opposition has long irritated him. This is no doubt a warning shot to the growing youth resistance against his “papers, please” citizenship law.

Here’s what happened at JNU:

On Sunday evening, January 5, 40 to 50 hoodlums, mostly men but also a few women, faces partially wrapped in scarfs, armed with clubs, iron rods, and sledgehammers, stormed the campus. Eyewitness accounts and video footage suggest that several of these people were members of Akhil Bharatiya Vidyarthi Parishad (ABVP), a student union associated with Modi’s party. They approached a group of students protesting a sudden, massive fee hike and began thrashing them. They bloodied the student president, Aishe Ghosh, and many others.

Then, chanting that the students were traitors who deserve to be shot for opposing the administration, the attackers barged into dorm rooms and went on a rampage, taking care to spare rooms that sported ABVP posters. Muslim students were of course fair game. And so was a blind Hindu student, a Sanskrit scholar and a student of Hinduism no less, whose wall sported a picture of Dr. B.R. Ambedkar, India’s reformist founding father. (Ambedkar has fallen from grace in pro-Modi circles because he was a vigorous opponent of the caste system and other regressive Hindu practices and because his ideas are fueling the constitutional case against Modi’s Hindu nationalism.)

JNU’s vice-chancellor, who is appointed by the central government, failed to mobilize campus security to stop the mayhem. The Delhi police, which is under the command of the Modi government rather than local authorities, ignored the frantic calls of students for over an hour. A veritable battalion of cops was standing right outside the campus gates, but not a single one went in to stop the attack. The cops even stood by as ambulances were vandalized right in front of them.

Modi hasn’t said a word condemning the violence at JNU. No assailant has been charged or arrested. The police claim they’re zeroing in on some suspects, but—judging by how they have handled cow vigilantes lynching Muslims suspected of consuming beef—you shouldn’t be surprised if anyone arrested faces no more than a slap on the wrist.

At the exact same time that the JNU students were getting bashed, the cops were preparing a rap sheet against some of them, including Ghosh, for allegedly vandalizing university computer servers the day before to stop students from registering. Ghosh denies the allegation. The ABVP circulated a video—retweeted by the vice chancellor—that purported to show that the Sunday violence was triggered by a prior episode when a “lefty student” punched an ABVP member. But it turned out to be the opposite: An ABVP supporter appears to have been attacking a “lefty student.”

All of this—law enforcement standing by as private militants allied with the ruling party go on a violent spree, criminalizing the victims, spreading disinformation to confuse the public—was Modi’s modus operandi in Gujarat. And the ominous parallels with that grisly episode don’t stop there.

The Gujarat carnage was preceded by a long vilification campaign against Muslims, a strategy he Modi has been replicating in miniature against the university. The prime minister has long castigated JNU students and faculty as communists and traitors who want to break up the country—never mind that last year’s Nobel laureate in economics along with two of Modi’s own cabinet ministers hail from the university. Modi’s home minister and right-hand man, Amit Shah, known for his brass knuckles politics, has repeatedly said the university’s “tukde tukde gang“—meaning the gang that wants to dismember India piece by piece—needs to be “taught a lesson.” Modi popularized this moniker a few years ago when some of JNU’s firebrand student leaders harshly protested the abrupt hanging of a Muslim man who had allegedly attacked the Indian parliament.

Such statements signaled to Modi and Shah’s most extreme supporters that they wanted the university targeted, without having to bother with actually giving orders to law enforcement authorities. Not that Modi’s crew is shy about issuing orders when they think it’s necessary. A few weeks ago, cops appeared to vandalize Jamia Millia University, a Muslim institution in New Delhi. Modi’s comrade, Yogi Adityanath, the chief minister of Uttar Pradesh, went even further. His police showed up at Aligarh Muslim University and roughed up students protesting Modi’s faith-cleansing policies that would strip an untold number of Indian Muslims of citizenship.

Over 60 students were injured, three critically. Several students have just disappeared. A Muslim female journalist who was covering a protest in nearby Lucknow was arrested and allegedly assaulted by police.

Such tactics are backfiring. The anti-government protests, especially on college campuses, are spreading. Students at many elite colleges have gone on strike and are holding candlelight vigils to protest the events at JNU and AMU as well as Modi’s citizenship law.

A normal politician would back off in the face of such public opposition and extend an olive branch, especially given how quickly Modi’s carefully cultivated squeaky-clean image is getting trashed in India and abroad. But Modi and Shah are doubling down.

Previously, they had dubbed secularists defending religious freedom as “Muslim appeasers.” Now even moderate free-market conservatives or middle-of-the-road liberals expressing concern over the direction of the country are being branded as the radical left, according to Madhvan Narayanan, a veteran Indian journalist.

Why is Modi doing this? What’s his endgame?

Many fear he is deliberately baiting protesters and fomenting widespread unrest to build an excuse to cancel elections in Delhi next month and put the city under the president’s rule. His party is expected to lose handily, just as it has done in other state elections in recent months, thanks to the growing dismay over his assaults on citizenship. There is even speculation that he is preparing to suspend India’s constitution and declare an emergency, just as Indian Prime Minister Indira Gandhi notoriously did in 1975.

That may or may not be the case. But one open question about Modi always has been whether he was pushing an extreme Hindu nationalist agenda to gain power or pursuing power to push his agenda. His growing enemies list—and the private and state violence he will apparently deploy against those on it—suggests that the former might be the case.

This means no one outside of Modi’s band of merry brothers is safe in India anymore. All of India is Gujarat now. Dissent is out. Violence is in.

As one poster at a protest noted: “First AMU. Then JNU. Next You.”

A version of this column appeared in The Week.

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Blain: Is Donald Trump Just An Extremely Lucky Guy?

Blain: Is Donald Trump Just An Extremely Lucky Guy?

Blain’s Morning Porridge, submitted by Bill Blain

“Scientists have calculated that the chances of something so patently absurd actually happening are millions to one. But magicians have calculated that million-to-one chances crop up nine times out of ten.”

Is Donald Trump just a very lucky guy? 

It’s difficult to imagine he foresaw, calculated and planned this outcome.  After poking the fire-hornets’ nest and picking an apparently insane fight with Iran by assassinating its military leader, everyone feared the worst in terms of a never-ending morass of instability, conflict and terror.  Instead, the Iranian’s proved themselves incompetent clowns – successfully managing to miss American troops with multiple missiles, while tragically taking out an airliner instead. Revolution on the streets again. Confidence in the govt is “strained”. A revolution is being whispered.  

No doubt Iran’s Shiite militant groups will continue to follow every instruction from Tehran, but globally, Iran looks a neutered numpty.  It will have to refocus its efforts on domestic repression.  Chalk one up for Trump.  And more to the point, let’s reassess likely scenarios across the Middle East in terms of investment opportunities and outcomes – suddenly it all looks less bleak and possible. Maybe even Aramco will provide Saudi with a base to expand upon?

Trump also looks lucky on China: he will get a signed trade deal ahead of his election campaign, while China faces not only the festering pustule of Hong Kong, but also Tsai Ing-Wen’s landslide victory in Taiwan – putting it on collision course with Beijing. Tsai has made the point she won because voters agreed it’s been the irreconcilable differences between what Hong Kong citizens want and what Beijing demands – “one country, two systems” doesn’t work, and doesn’t work for the Island.

Geopolitics as a market force looks dented. Don’t believe it. Stay vigilant. 

But, let’s not forget US elections are “all about the economy, stupid..” What did Friday’s US data tell us? Nothing particular.. Not galloping forwards, but hardly heading for recession – but enough to stall rising stocks. Does it matter? Most Americans I speak with made their minds up about Trump a long-time ago. The distractions of the when of the impeachment trial now looks increasingly irrelevant. 

So… what is there to worry about in market terms?

The first big Geo-P challenges of the new year quickly proved hollow threats. Nothing to worry about. Put yer buying boots on and spend, spend, spend. Market buzz is all about the primary debt market explosion as everyone seeks to borrow more and more readies. Apparently, it was a record week for bond fund inflows on the back of the Iran tension.  That will be good news for the European sovereigns front loading 2020 funding plans. 

Which should maybe get us thinking about the big risks of 2020.  I reckon its going to be bonds. What’s the likely trigger? A misstep by central bankers? An outbreak of Italian bond flu? 

This week’s German economic data is likely to show the economy slowing to its weakest level since 2013 – begging the question why? Everyone cites how Germany is un-prepared for the end of the Auto-Era, the growing irrelevance of its unrivalled skills in machine tooling and complex engineering, or its consumption potential. Despite pretty much full employment – why is Germany such an economic disappointment? 

Maybe it’s just something about the way countries function. Investors used to love Dull, Boring and Predictable as a mantra. That’s certainly still true in bonds – if I lend money I want to be pretty damn sure I am going to get my money back. And that promotes a certain investment and political mindset – which should be ringing bells on the back of some of the news this morning: 

  • In France, Macron will likely give concessions to revolting French workers and agree not to raise the retirement age to 64 in return for watered down pensions reform. 

  • In the UK, Radio 4 was talking to a pensions consultant about the Rail pensions scheme describing it in very unflattering terms, while a blunt union boss was explaining there is nothing wrong with the fund, except a political agenda to switch final salary schemes to personal pensions, thus robbing workers of their “rights”. 

Therein lies the challenge – how many nations can continue to reward their bloated nomenklaturas of bureaucrats and state services with final salary schemes paid for by tax-payers responsible for their own pensions provision? It’s a variation on how dull, boring, predictable becomes a problem. 

There is the story the UK will be spending £1.10 of every £1.00 collected in taxes on pensions for state employees by 2030.

I might have told the story before about a health manager I met complaining their pension was a mere £150,000… they had no idea what size of pension pot they’d have had to save for that, and considered it a right after their service to the state! I’ve heard much the same from lifers in a well-known UK bank: it’s their payback for years of pointless unrewarded drudgery – my expectations of a healthy return from their stock doesn’t figure much in their work life balance. 

I’m not arguing against pensions – definitely not – but about the incipient bureaucratic creep they have become part of.  I’m wondering just how much more attention should we pay to sovereign ratings in terms of not only their pension obligations, but the influence of the bureaucracy/pension complex in society? To say that parts of Europe are heading for bust without pension reform would be a No Sh*t Sherlock moment.  

Where the primary reason for an employee to take a job is pension security rather than economic opportunity – you have to ponder what the upside in that business or country is. 


Tyler Durden

Mon, 01/13/2020 – 10:50

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“In A Divorce, Everyone Is The Loser” – Nissan Reportedly Planning Split From Renault

“In A Divorce, Everyone Is The Loser” – Nissan Reportedly Planning Split From Renault

The long-rumored breakup of the Nissan-Renault-Mitsubishi alliance, an often-mimicked arrangement first devised by former CEO Carlos Ghosn more than 20 years ago, might finally be on the cusp of happening.

With all the added strain that Ghosn’s ‘Great Escape’ and press conference has put on the already-tense relationship between the two partners, senior executives at Nissan are reportedly devising a contingency plan to disentangle Nissan’s operation’s from Renault’s in preparation for a potential split. The war-gaming includes a total divide of their shared engineering and research operations, as well as changes to Nissan’s board. The plans have been “ramped up” since Ghosn’s great escape, the Financial Times reports.

Shareholders are probably hoping that cooler heads prevail. Because despite the mutual suspicion and Nissan’s staunch opposition to a full merger, one twitter user pointed out that the break would be scuttling “years” of work, and that “in a divorce, everyone is the loser.”

As Ghosn explained during last week’s rambling press conference, he had proposed a new corporate structure for the alliance that would have brought Nissan and Renault together under one board, while maintaining quasi-independent operations, Ghosn denied that this was tantamount to a merger, but it’s clear that the Japanese felt differently. Ghosn says senior executives inside Nissan engineered his legal downfall because they were fearful that he would lead the Japanese company to a full merger.

But suspicion has been festering on both sides since Ghosn’s arrest. Renault’s new Chairman, Jean-Dominique Senard, who replaced Ghosn after his imprisonment, expressed his doubts about the partnership enduring.

Though the Japanese seem convinced that continuing to partner with the French isn’t the way to go, a full split would leave both companies at a disadvantage in a world of automaker consolidation.

Both companies would probably eventually need to find new partners, according to the FT.

Despite efforts to improve relations on both sides, the partnership with Renault – which produces 10m cars a year – had become toxic, said two of the people, with many senior Nissan executives now believing the French carmaker is a drag on its Japanese counterpart.

A full split would probably force both carmakers to seek new partners in an industry grappling with falling sales and rising costs from the shift to electric vehicles. It would also leave both businesses smaller at a time when rivals are bulking up, with Fiat Chrysler and PSA merging and Volkswagen and Ford forming their own alliance.

A split would also disrupt Nissan’s plans for going electric. Nissan is preparing to launch the Ariya, an all-electric sport utility vehicle, within the next three years. But the vehicle was built using a new platform co-developed with Renault. It’s not clear how a split would impact that.

But after all that’s happened, and all that’s been reported in the press, it’s difficult to imagine the two partners patching things up. Even though, by giving up their synergies and scale, one might argue that they are in violation to their fiduciary duties to their shareholders.

Renault drops as much as 2.9% in Paris, the steepest intraday decline since Nov. 12, though they’ve trimmed some of those losses in recent trading.


Tyler Durden

Mon, 01/13/2020 – 10:35

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“Nothing Can Go Wrong… Right?” Trader Warns Everyone’s All-In

“Nothing Can Go Wrong… Right?” Trader Warns Everyone’s All-In

As we noted over the weekend, everyone’s all-in…

Despite 77% of CFOs now admitting  the market is significantly overvalued, retail investor (super) sentiment, via the CNN Fear and Greed Index, has printed at all time series highs.

What about institutional sentiment? Well, contrary to several goalseeked indicators which erroneously repeat week after week that whales and other prominent institutional traders remain “on the fence” despite the now daily record highs in the S&P, the truth is that virtually everyone is now all in: from simple human-driven discretionary, to macro funds, all the way to algo and CTAs.

In fact, as Deutsche Bank’s Parag Thatte writes in his weekly flow report, “positioning in equities has been rising and is now in the 96th percentile on our consolidated measure, with a wide variety of metrics very stretched.”

And, as we have noted previously, equity flows as well as “equity positioning, like the market itself, has run far ahead of current growth as investors price in a global growth rebound.

And as Bloomberg’s Richard Breslow notes, last week highlighted this extremely well as the schizophrenic market crashed and roared back with irrational exuberance.

All-time highs are being racked up in U.S. equities with casual abandon. And if you didn’t buy the dip, it felt like a mistake rather than just a missed opportunity. As this week beckons, there is an optimism that has spread among investors which is sapping all of the fear side of the equation out of traders’ outlooks. It took 10 years to get here and everyone now wants to jump in. Nothing can go wrong.

The question is, are people starting to feel more upbeat about the global economy or is this just another round of central bank dovishness designed to propel asset prices higher? The answer appears to be, yes. Weakness will be met with overt accommodation. Strength with silence.

  • The numbers out of the U.K. have underwhelmed. There has been no shortage of BOE officials setting the table for a potential rate cut.

  • China has forecast that its economy will defy predictions and print a strong 6% or higher GDP number on Friday. No one expects them to put on the breaks.

  • German growth seems to be showing signs of stabilizing. The calls for additional fiscal stimulus are growing louder.

  • The latest U.S. non-farm payrolls report disappointed, but was no disaster. You can be sure that the Fed officials scheduled to speak in the next few days will intend to soothe any frayed nerves, should they actually exist.

It’s easy to conclude that economic numbers have less relevance for trading if they won’t get a balanced response from the authorities. The market will feast on that for a while. But letting things run hot, should it come to pass, won’t have an infinite shelf-life. Especially if it starts to manifest itself in the price data. Which makes tomorrow’s CPI data all the more interesting, where the economist estimates look mostly uniform but the whisper number hints at a possible upside bias. Retail sales on Thursday could also show enduring consumer strength.

It’s been a Japanless start to the week and volumes show it. Coming of Age Day seems like a quaint idea. What do markets look like as we get going and what’s in play? After last week’s dramatics, Brent crude has gone from threatening to blast-off to wondering if support will hold close to $64. Positions have probably been cleared out and this will be an important test of the market’s resiliency. And will go a long way in determining economic forecasts for the Asian economy.

The Chinese yuan has been appreciating at an accelerating pace. It’s about to reach important support. Traders have gotten this one wrong. And are paying the price. It had better start to hold or analysts will have to consider reevaluating their outlook and understanding of the PBOC’s reaction function. The yuan crosses are certainly on the move. So much for yen strength. Another example of traders having positioned incorrectly.

Maybe I’m fooling myself, but global bond yields look like they just need to probe higher. Treasuries continue to frustrate those looking for a breakout, one way or the other. But bunds look like they want to try to test yields not seen since the first half of last year. Should they rise from right here, things could get interesting.

The dollar wants to trade great, but, in truth, is not doing as much as it seems. At the end of the day, it is probably range-bound. For the Dollar Index, 97-98 might be all we can muster for the week. Getting out of that range becomes fun.

As far as equities are concerned, it would be easier to like them if everyone would stop telling me it’s so obvious where they are going. No matter what the economic numbers bring.

This market is being described as remarkably straightforward (ZH: one might argue ignorant, but we are just splitting hairs)…

My guess is a lot more stop losses have been in play than is being credited. The year hasn’t been decided yet.


Tyler Durden

Mon, 01/13/2020 – 10:15

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No Sealing of Photos and Plans of $20M, 29,000 Sq. Ft. House (with 55,000 Sq. Ft. of Improvements)

Vernon W. Hill and Shirley Hill own “what [they] describe as the largest single-family home in Southern New Jersey, consisting of 29,236 square feet of living space and an additional 55,543 square feet of improvements on a 7.21-acre portion of a 44-acre parcel. Its 2008 assessment was $20,814,500.

Completed in 2002, the home is built in an Italianate style and boasts a Barre granite facade, granite terraces, cascading waterfalls and several reflecting pools. There are six bedrooms and eleven full bathrooms. The walls and floor of the two-story foyer are marble. A fountain of black onyx marble anchors a circular marble staircase to the second floor. The living room is topped by a large circular dome with a Venetian plaster finish. There are three kitchens (two on the first floor and a full-size commercial kitchen in the basement), a gym, a library, two massage rooms, a hair salon, a billiards room, six storage or pantry rooms, laundry and trash rooms, a wine cellar, and two “viewing rooms” for admiring the landscape. The two-story “Lemon Room,” a sort of orangery for lemon trees, was added in 2006.

Hill, as I understand it, is a past chairman and CEO of Commerce Bancorp, and founder of Metro Bank UK; a Fortune article called him “the P.T. Barnum of banking.” (He was also a party to an interesting copyright / work-for-hire / injunction case, TD Bank N.A. v. Hill (3d Cir. 2019), related to a business book that he wrote.)

The Hills sued in N.J. Tax Court to challenge their 2008 tax assessment, and litigated the case up to the state’s intermediate appellate court, the Appellate Division. They lost, though it sounds like they could have lost more, had the assessor so argued: “[A]lthough the property was assessed at $20,814,500, [the tax] court determined its true market value to be $34,426,812 and, because the municipality did not file a counterclaim, the court did not raise the assessment on the property.”

Now, though, the financial dispute is over, and what’s left is the sealing dispute. The case apparently wasn’t supposed to be sealed:

Plaintiffs filed a complaint in this court challenging the tax year 2008 assessment. At the request of the parties, the court entered a consent protective order in which the parties agreed to maintain the confidentiality of documents and information exchanged during discovery. The consent protective order did not provide that documents and information filed with the court would be sealed from public disclosure pursuant to Rule 1:38-11…. [T]his court denied plaintiffs’ post-trial motion pursuant to Rule 1:38-11 to seal the trial court record ….

But the record appears to have been treated as sealed, so the Appellate Division case was marked “Record Impounded,” which drew the interest of Larry S. Loigman, a New Jersey lawyer who had litigated state public records cases before. He then intervened to unseal the case, and Monday Tax Court Judge Patrick DeAlmeida agreed (Hill v. Township of Moorestown, 2020 WL 116112 (N.J. Tax Ct.)), though the decision won’t take effect for 30 days, to give the parties the time to appeal.

Indeed, the court largely rejected even the Hills’ much-narrowed request (they “no longer request that the entire record be sealed,” but focus only on a few items). The court concluded that, under New Jersey law (and especially the New Jersey open court rules, drafted by the Supreme Court Special Committee on Public Access to Court Records), nearly everything in the record should be unsealed, except some personal e-mail addresses and information about the location of a security system on the property:

The Special Committee’s rejection of an exemption for appraisal reports submitted to this court highlights two salient points. First, the public interest in judicial resolution of local property tax appeals outweighs the privacy interests of the taxpayer to information in an appraisal report submitted to this court, at least in the context of proprietary business information. Second, public disclosure of appraisal reports submitted to this court is favored whenever the court uses the reports to facilitate resolution of the appeal, even when the reports are not admitted into evidence. This is significant because it is apparent to this court that the Special Committee’s discussion of appraisal reports was premised on the assumption the reports would be subject to public disclosure if admitted into evidence at trial….

Plaintiffs argue they have a constitutional right to privacy that includes the right to exclude the public from viewing their home and its contents and to prevent public disclosure of the details of their premises … [including the appraisal report that must be submitted with a challenge, and that contains] a detailed description of the property, interior and exterior photographs, and a floor plan…. While recognizing the Special Committee considered and rejected recommending excluding appraisal reports submitted in Tax Court matters from public disclosure, plaintiffs argue the Special Committee considered only those reports containing proprietary commercial information and not appraisal reports concerning the privacy interest of a taxpayer in their residence.

Plaintiffs also argue that … the information that is the subject of their motion is of limited value to the public, because this court issued a written decision explaining at length how it determined the true market value of plaintiffs’ home for tax year 2008 and most of the Hill Appeal record, including portions of the parties’ appraisal reports, is available for public disclosure.

In addition, plaintiffs submitted a certification asserting the construction of their home was “the subject of intense public scrutiny and media attention[,]” including “attempts by the paparazzi to invade the privacy of the home[,]” which is not wholly visible from the street.

Plaintiffs have hosted events at the home at which Governors and the Speaker of the House of Representatives were guests. On those occasions, a secret service detail and security personnel were required to secure the property. Plaintiffs have taken steps to ensure the privacy, safety, and security of the property for themselves and their guests by regularly requiring those who visit the property, including the appraisers involved in this matter, to sign a confidentiality agreement.

According to plaintiffs, “the interior home photographs and in depth descriptions” of the property “are extremely sensitive and private, and release could jeopardize not only the safety, health and security of [their] family, but of those honored guests [they] choose to invite into [the] home.” Plaintiffs recognize this court’s opinion affirming the tax year 2008 assessment contains a description of their home, but argue “the items [they] seek to protect are much more descriptive, personal and intrusive and could be used by someone wishing to breach the security systems [they have] taken steps to provide.”

Loigman argues this matter is a “garden variety” appeal of an assessment on a residential property, of the type routinely tried in the Tax Court without a sealed record. He argues the grand nature of plaintiffs’ home is insufficient to distinguish it from any other residential property and the potential injuries asserted by plaintiffs are speculative. He notes plaintiffs should have expected their decision to challenge the tax year 2008 assessment on their property would result in public scrutiny of their home, as is the case with any taxpayer who files a residential tax appeal.

Loigman argues the public has a right to know plaintiffs have not been treated with favoritism by the municipal tax assessor and how this court determined the true market value of plaintiffs’ home for local property tax purposes. He points out that although the property was assessed at $20,814,500, this court determined its true market value to be $34,426,812 and, because the municipality did not file a counterclaim, the court did not raise the assessment on the property….

The court almost entirely sided with Loigman, reasoning in particular:

[A.] [A]erial photographs of the property included in an appraisal report submitted at trial. The photographs each contain the word “Google” in the lower righthand corner, suggesting they were obtained from a commonly available resource.

The court concludes plaintiffs have not established disclosure of the photographs “will likely cause a clearly defined and serious injury to any person or entity” under Rule 1:38-11. While the court finds plaintiffs and their home have been the subject of intense public interest and scrutiny, there is nothing in the motion record establishing by a preponderance of the evidence how plaintiffs would be injured by release of the aerial photographs or that any injury would be serious or likely to occur.

Moreover, this court adopts the rationale of the Special Committee that the public interest in assuring the fairness of the process by which property taxes are levied outweighs the taxpayers’ privacy interest in personal information contained in appraisal reports submitted to this court. While the Special Committee considered appraisal reports containing proprietary commercial information, this court concludes its rationale is equally applicable to appraisal reports containing information about a taxpayer’s residence, absent a showing disclosure will likely cause serious injury to the taxpayer or any other person….

[B.] [F]loor plans of the house. Again, the court concludes plaintiffs have not established release of the floor plans “will likely cause a clearly defined and serious injury to any person or entity” under Rule 1:38-11. The court acknowledges plaintiffs’ interest in maintaining their privacy and the security of their home. The floor plans, while detailed, are on small scale and are difficult to read. Plaintiffs do not identify any depiction on the floor plans of security systems protecting the home. In addition, as noted above, the public interest in disclosure of appraisal reports submitted to, and used by, this court to determine true market value is significant and outweighs plaintiffs’ purported privacy interest in these documents….

[C.] [T]he expert’s detailed description of the interior and exterior characteristics of the home. The pages describe the history of the construction of the home, various materials used to build the house, finishes, ceiling heights, room features, amenities, and exterior improvements. In addition, the documents provide a detailed description of the tax year 2008 assessment and the zoning restrictions applicable to the property. Plaintiffs have not established the disclosure of this information is likely to cause a clearly defined and serious injury to them or others….

[D.] [T]he expert’s detailed discussion of how he formulated his opinion of the true market value of the property under the cost approach to valuation. The discussion includes details of the actual costs incurred by plaintiffs when constructing the home, the expert’s estimate of some costs, and his opinion of the hypothetical cost to replace the home. This page contain a description of the expert’s analysis of a type routinely submitted to this court to determine true market value under the cost approach. There is nothing in this document suggesting its disclosure is likely to cause a clearly defined and serious injury to plaintiffs or any other person….

[E.] [P]hotographs of the interior and exterior of the home, the roadways near the home, entrance gates to the property, an aerial photograph of the property marked “Microsoft Virtual Earth[,]” a map of the neighborhood in which the property is located marked “Microsoft Virtual Earth[,]” a tax map (which most certainly is a public document), a topographical map of the property, floor plans (with no interior walls or features depicted), a letter from an architect stating his opinion of the amount of the livable square footage of the home, floor plans with interior walls and features depicted, a summary of expenses incurred by plaintiffs when constructing the home, and a flood hazard map of the area surrounding the property.

These documents are typical of those submitted to this court with appraisal reports and do not contain confidential information. The only aspect of these documents that cause the court pause are the photographs of the interior of the home. Some of the photographs depict plaintiffs’ furniture, table settings, and other personal property, none of which is obviously embarrassing or of an intimate nature.

Those photographs, however, also depict features of the home. The appearance of plaintiffs’ personal property in the photographs is incidental to the depiction of the interior of the home. The court used the photographs when determining the true market value of the home, as the house’s characteristics are relevant to its value in the marketplace. While disclosure of the photographs will expose some of plaintiffs’ personal property to public view, the court concludes plaintiffs have not established disclosure is likely to cause a clearly defined and serious injury to them or others. The court, therefore, finds plaintiffs have not established good cause for sealing these documents under Rule 1:38-11….

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No Sealing of Photos and Plans of $20M, 29,000 Sq. Ft. House (with 55,000 Sq. Ft. of Improvements)

Vernon W. Hill and Shirley Hill own “what [they] describe as the largest single-family home in Southern New Jersey, consisting of 29,236 square feet of living space and an additional 55,543 square feet of improvements on a 7.21-acre portion of a 44-acre parcel. Its 2008 assessment was $20,814,500.

Completed in 2002, the home is built in an Italianate style and boasts a Barre granite facade, granite terraces, cascading waterfalls and several reflecting pools. There are six bedrooms and eleven full bathrooms. The walls and floor of the two-story foyer are marble. A fountain of black onyx marble anchors a circular marble staircase to the second floor. The living room is topped by a large circular dome with a Venetian plaster finish. There are three kitchens (two on the first floor and a full-size commercial kitchen in the basement), a gym, a library, two massage rooms, a hair salon, a billiards room, six storage or pantry rooms, laundry and trash rooms, a wine cellar, and two “viewing rooms” for admiring the landscape. The two-story “Lemon Room,” a sort of orangery for lemon trees, was added in 2006.

Hill, as I understand it, is a past chairman and CEO of Commerce Bancorp, and founder of Metro Bank UK; a Fortune article called him “the P.T. Barnum of banking.” (He was also a party to an interesting copyright / work-for-hire / injunction case, TD Bank N.A. v. Hill (3d Cir. 2019), related to a business book that he wrote.)

The Hills sued in N.J. Tax Court to challenge their 2008 tax assessment, and litigated the case up to the state’s intermediate appellate court, the Appellate Division. They lost, though it sounds like they could have lost more, had the assessor so argued: “[A]lthough the property was assessed at $20,814,500, [the tax] court determined its true market value to be $34,426,812 and, because the municipality did not file a counterclaim, the court did not raise the assessment on the property.”

Now, though, the financial dispute is over, and what’s left is the sealing dispute. The case apparently wasn’t supposed to be sealed:

Plaintiffs filed a complaint in this court challenging the tax year 2008 assessment. At the request of the parties, the court entered a consent protective order in which the parties agreed to maintain the confidentiality of documents and information exchanged during discovery. The consent protective order did not provide that documents and information filed with the court would be sealed from public disclosure pursuant to Rule 1:38-11…. [T]his court denied plaintiffs’ post-trial motion pursuant to Rule 1:38-11 to seal the trial court record ….

But the record appears to have been treated as sealed, so the Appellate Division case was marked “Record Impounded,” which drew the interest of Larry S. Loigman, a New Jersey lawyer who had litigated state public records cases before. He then intervened to unseal the case, and Monday Tax Court Judge Patrick DeAlmeida agreed (Hill v. Township of Moorestown, 2020 WL 116112 (N.J. Tax Ct.)), though the decision won’t take effect for 30 days, to give the parties the time to appeal.

Indeed, the court largely rejected even the Hills’ much-narrowed request (they “no longer request that the entire record be sealed,” but focus only on a few items). The court concluded that, under New Jersey law (and especially the New Jersey open court rules, drafted by the Supreme Court Special Committee on Public Access to Court Records), nearly everything in the record should be unsealed, except some personal e-mail addresses and information about the location of a security system on the property:

The Special Committee’s rejection of an exemption for appraisal reports submitted to this court highlights two salient points. First, the public interest in judicial resolution of local property tax appeals outweighs the privacy interests of the taxpayer to information in an appraisal report submitted to this court, at least in the context of proprietary business information. Second, public disclosure of appraisal reports submitted to this court is favored whenever the court uses the reports to facilitate resolution of the appeal, even when the reports are not admitted into evidence. This is significant because it is apparent to this court that the Special Committee’s discussion of appraisal reports was premised on the assumption the reports would be subject to public disclosure if admitted into evidence at trial….

Plaintiffs argue they have a constitutional right to privacy that includes the right to exclude the public from viewing their home and its contents and to prevent public disclosure of the details of their premises … [including the appraisal report that must be submitted with a challenge, and that contains] a detailed description of the property, interior and exterior photographs, and a floor plan…. While recognizing the Special Committee considered and rejected recommending excluding appraisal reports submitted in Tax Court matters from public disclosure, plaintiffs argue the Special Committee considered only those reports containing proprietary commercial information and not appraisal reports concerning the privacy interest of a taxpayer in their residence.

Plaintiffs also argue that … the information that is the subject of their motion is of limited value to the public, because this court issued a written decision explaining at length how it determined the true market value of plaintiffs’ home for tax year 2008 and most of the Hill Appeal record, including portions of the parties’ appraisal reports, is available for public disclosure.

In addition, plaintiffs submitted a certification asserting the construction of their home was “the subject of intense public scrutiny and media attention[,]” including “attempts by the paparazzi to invade the privacy of the home[,]” which is not wholly visible from the street.

Plaintiffs have hosted events at the home at which Governors and the Speaker of the House of Representatives were guests. On those occasions, a secret service detail and security personnel were required to secure the property. Plaintiffs have taken steps to ensure the privacy, safety, and security of the property for themselves and their guests by regularly requiring those who visit the property, including the appraisers involved in this matter, to sign a confidentiality agreement.

According to plaintiffs, “the interior home photographs and in depth descriptions” of the property “are extremely sensitive and private, and release could jeopardize not only the safety, health and security of [their] family, but of those honored guests [they] choose to invite into [the] home.” Plaintiffs recognize this court’s opinion affirming the tax year 2008 assessment contains a description of their home, but argue “the items [they] seek to protect are much more descriptive, personal and intrusive and could be used by someone wishing to breach the security systems [they have] taken steps to provide.”

Loigman argues this matter is a “garden variety” appeal of an assessment on a residential property, of the type routinely tried in the Tax Court without a sealed record. He argues the grand nature of plaintiffs’ home is insufficient to distinguish it from any other residential property and the potential injuries asserted by plaintiffs are speculative. He notes plaintiffs should have expected their decision to challenge the tax year 2008 assessment on their property would result in public scrutiny of their home, as is the case with any taxpayer who files a residential tax appeal.

Loigman argues the public has a right to know plaintiffs have not been treated with favoritism by the municipal tax assessor and how this court determined the true market value of plaintiffs’ home for local property tax purposes. He points out that although the property was assessed at $20,814,500, this court determined its true market value to be $34,426,812 and, because the municipality did not file a counterclaim, the court did not raise the assessment on the property….

The court almost entirely sided with Loigman, reasoning in particular:

[A.] [A]erial photographs of the property included in an appraisal report submitted at trial. The photographs each contain the word “Google” in the lower righthand corner, suggesting they were obtained from a commonly available resource.

The court concludes plaintiffs have not established disclosure of the photographs “will likely cause a clearly defined and serious injury to any person or entity” under Rule 1:38-11. While the court finds plaintiffs and their home have been the subject of intense public interest and scrutiny, there is nothing in the motion record establishing by a preponderance of the evidence how plaintiffs would be injured by release of the aerial photographs or that any injury would be serious or likely to occur.

Moreover, this court adopts the rationale of the Special Committee that the public interest in assuring the fairness of the process by which property taxes are levied outweighs the taxpayers’ privacy interest in personal information contained in appraisal reports submitted to this court. While the Special Committee considered appraisal reports containing proprietary commercial information, this court concludes its rationale is equally applicable to appraisal reports containing information about a taxpayer’s residence, absent a showing disclosure will likely cause serious injury to the taxpayer or any other person….

[B.] [F]loor plans of the house. Again, the court concludes plaintiffs have not established release of the floor plans “will likely cause a clearly defined and serious injury to any person or entity” under Rule 1:38-11. The court acknowledges plaintiffs’ interest in maintaining their privacy and the security of their home. The floor plans, while detailed, are on small scale and are difficult to read. Plaintiffs do not identify any depiction on the floor plans of security systems protecting the home. In addition, as noted above, the public interest in disclosure of appraisal reports submitted to, and used by, this court to determine true market value is significant and outweighs plaintiffs’ purported privacy interest in these documents….

[C.] [T]he expert’s detailed description of the interior and exterior characteristics of the home. The pages describe the history of the construction of the home, various materials used to build the house, finishes, ceiling heights, room features, amenities, and exterior improvements. In addition, the documents provide a detailed description of the tax year 2008 assessment and the zoning restrictions applicable to the property. Plaintiffs have not established the disclosure of this information is likely to cause a clearly defined and serious injury to them or others….

[D.] [T]he expert’s detailed discussion of how he formulated his opinion of the true market value of the property under the cost approach to valuation. The discussion includes details of the actual costs incurred by plaintiffs when constructing the home, the expert’s estimate of some costs, and his opinion of the hypothetical cost to replace the home. This page contain a description of the expert’s analysis of a type routinely submitted to this court to determine true market value under the cost approach. There is nothing in this document suggesting its disclosure is likely to cause a clearly defined and serious injury to plaintiffs or any other person….

[E.] [P]hotographs of the interior and exterior of the home, the roadways near the home, entrance gates to the property, an aerial photograph of the property marked “Microsoft Virtual Earth[,]” a map of the neighborhood in which the property is located marked “Microsoft Virtual Earth[,]” a tax map (which most certainly is a public document), a topographical map of the property, floor plans (with no interior walls or features depicted), a letter from an architect stating his opinion of the amount of the livable square footage of the home, floor plans with interior walls and features depicted, a summary of expenses incurred by plaintiffs when constructing the home, and a flood hazard map of the area surrounding the property.

These documents are typical of those submitted to this court with appraisal reports and do not contain confidential information. The only aspect of these documents that cause the court pause are the photographs of the interior of the home. Some of the photographs depict plaintiffs’ furniture, table settings, and other personal property, none of which is obviously embarrassing or of an intimate nature.

Those photographs, however, also depict features of the home. The appearance of plaintiffs’ personal property in the photographs is incidental to the depiction of the interior of the home. The court used the photographs when determining the true market value of the home, as the house’s characteristics are relevant to its value in the marketplace. While disclosure of the photographs will expose some of plaintiffs’ personal property to public view, the court concludes plaintiffs have not established disclosure is likely to cause a clearly defined and serious injury to them or others. The court, therefore, finds plaintiffs have not established good cause for sealing these documents under Rule 1:38-11….

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Do you have a backup generator?

The news headlines read, “Deadly 6.4 Magnitude Earthquake Plunges Puerto Rico into Darkness”; and “Powerful Puerto Rico Earthquake Knocks Out Entire Island’s Power.”

It was enough to prompt my mother to call, four times, to make sure I was OK.

There’s been a string of fairly strong earthquakes lately in Puerto Rico… which is incredibly unusual for this part of the world. It’s been more than a century since the island was rocked by anything of this magnitude.

But I explained to my parents that the press had blown things out of proportion as usual. They were running video footage that made it seem as if the island had been blasted back into the Stone Age.

It’s true that there were some displaced families and property damage near the epicenter.

But most of the island was not substantially affected. None of the major news organizations bothered to show footage of busy shopping malls, crowded restaurants, and packed movie theaters teeming with consumers.

It’s also true that the electrical grid went down: the island was without power for some time. Here in my community, the power came back on after 2 days. Some people had it on after a day, some after 3 or 4 days.

But here’s what people don’t realize– the electricity problems in Puerto Rico have a lot less to do with the seismic activity, and a lot more to do with the island’s decade-long economic depression.

Puerto Rico’s economy has been in the dumps since at least 2006. The government is bankrupt and defaulted on many of its debts as far back as 2015. And Puerto Rico’s Electric Power Authority (PREPA) is bankrupt as well, having defaulted on billions of dollars worth of bond obligations.

All of this financial insolvency means that neither the government nor PREPA has the resources to invest in the electrical grid.

And most of PREPA’s electrical production assets are in desperate need of replacement.

The largest power plant in Puerto Rico is the 820 MW Costa Sur facility, and according to PREPA, it was built in the 1950s!

This makes Costa Sur more than twice as old as the average power plant in the US.

They simply don’t have the money to modernize or upgrade their facilities. And people who live here understand this reality: the electrical grid in Puerto Rico is incredibly weak.

I’m serious. Power outages are commonplace here. The power at my house goes out at least 2-3 times a month, usually for a couple of hours.

That’s because every time a mouse farts on this island, something goes haywire at the electrical plants and the power goes out.

But again, Puerto Ricans know this. They have little confidence in their government, and even less confidence in the electrical grid.

So everyone who has the means in Puerto Rico owns a generator. It’s their Plan B. The power goes out, the generator comes on, and everything is OK.

My house is equipped with a huge generator… plus a backup cistern in case the water company goes down too.

This isn’t some wild conspiracy theory. In Puerto Rico, there’s nearly a 100% certainty that the system is going to fail… so having a backup generator is a perfectly sensible precaution to take.

And people who take this precaution are well-protected in the event that disaster strikes.

This way of thinking can obviously be applied to a lot of things… like retirement planning.

It’s no secret that government pension funds around the world are woefully underfunded.

University studies, non-profit research groups, mainstream financial press, and even government agencies themselves have reached the same conclusion: national, state, and local pension funds are trillions of dollars in the hole.

They simply do not have enough cash, nor will they have enough cash in the future, to pay the retirement benefits they owe.

Social Security in the United States is a great example.

Social Security’s Board of Trustees, which includes the United States Secretary of the Treasury, states quite plainly in their annual reports that Social Security’s primary trust funds will run out of money in 15 years.

Specifically, on page 5 of the 2019 Social Security Trustees Report, they state:

“Trust Fund asset reserves become depleted and unable to pay scheduled benefits in full on a timely basis in 2035.”

This isn’t some crazy conspiracy theory either. This is the US Treasury Secretary stating that in just 15 years, Social Security’s trust funds will be out of money and unable to pay the benefits that they’ve been promising people for decades.

This is just like Puerto Rico’s electrical issue: you know there’s nearly a 100% certainty that the program is going to run out of money.

I mean, seriously, the people in charge of program are telling you that it’s going to run out of money. It couldn’t be any more clear than that.

So it seems fairly sensible to have a backup generator for your retirement.

Everyone has a different situation– but there are plenty of options.

In the US, for example, tax deferred structures like a SEP IRA or Solo 401(k) can help you put away $50,000+ each year for your retirement in a really tax efficient way.

It’s even possible to use these structures combined with a side business like selling products on Amazon, renting out Airbnb units, etc. This means that you can channel income from your side business into your retirement account, helping you accumulate the savings you need to be comfortable in the future.

And, hey, even if Social Security is magically bailed out by benevolent space aliens, or some other crazy scenario, it’s not like you’ll be worse off having more retirement savings.

This is definitely worth considering and speaking to your tax adviser about.

Source

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Royal Family Holds Emergency Conclave To Discuss Prince Harry And Meghan

Royal Family Holds Emergency Conclave To Discuss Prince Harry And Meghan

Key players in Britain’s Royal Family are holding emergency crisis talks on Monday to discuss the future of the Duke and Duchess of Sussex after the couple announced last week that they would step down from their roles as senior members of the family.

Prince Charles flew back from Oman Sunday night to attend the conclave, held at Sandringham, the Queen’s private estate in Norfolk. Also in attendance will be the Queen, William, and Harry – while Meghan is expected to join them in a conference call from Canada, where she is flew last week with their baby, Archie.

An insider has told The Times that the pair both feel “tethered” by their responsibilities. The source added that the couple regarded themselves as having been pushed away by what they saw as a bullying attitude from the Duke of Cambridge. These claims have been strongly contested by sources close to the Cambridges, as well as some close to Prince Harry.

“She wants to leave,” the source said of the duchess. “She thinks, ‘It’s not working for me.’

He is under intense pressure to choose. It is sad. He loves the Queen. He loves this country. He loves all his military stuff. I think it will genuinely break his heart to leave. I don’t think that’s what he really wants. I think they want some halfway house.” –The Times

Prince William, meanwhile, has expressed “sadness” over the strained relations – telling the Times that the royal family was no longer “a team.”

“I’ve put my arm around my brother all our lives and I can’t do that any more; we’re separate entities,” William – the Duke of Cambridge, reportedly told a friend.

According to the Page Six, Harry and Meghan have been ‘hiding out’ at a home owned by Canadian billionaire and Clinton pal Frank Giustra – the former owner of Uranium One who donated $31.3 million to the Clinton Foundation – which was later followed by a pledge of at least $100 million.

According to the report, “The main house, called Mille Fleurs, was bought in 2014 and registered under a local country club to shield the identity of the owner. Even the neighbors haven’t known who the buyer is. The home is11,416 square feet, with five bedrooms and eight bathrooms, and the property also boasts a 2,349-square-foot guest cottage with three beds and two baths.”

On Thursday, Meghan flew back to the waterfront bolt-hole to join baby Archie, who was under the care of a nanny, following a trip to London earlier in the week, when she and Harry made their shocking announcement to quit the British royal family. Harry has stayed behind in the UK to deal with the fallout from “Megxit” but is expected to join Meghan in Canada later this week, after a pre-scheduled public engagement Thursday. –Page Six

Harry, who embarrassingly hit up Disney CEO Bob Iger to try and score Meghan a voice acting job, says they want to be financially independent and no longer wish to receive taxpayer money.

Observers say the couple is likely to generate income from a UK trademark from their brand, ‘Sussex Royal,’ which they applied for in June – along with sponsorships and speaking tours.

According to the Times, senior royal officials – including secretaries, press advisers and Sir Michael Stevens who handles royal finances, have been locked in talks for two days to work out various solutions to discuss on Monday.

The alternatives will cover central issues such as how much work the couple will carry out for the royal family and where they will live.

The Sussexes want to divide their time between Britain and Canada but their place of residence will have significant tax repercussions. Also on the table is Frogmore Cottage, the house in Windsor that was controversially renovated for at least £2.4 million at taxpayers’ expense. The couple are said to be prepared to give that up, although it is possible that they will remain there but pay a commercial rent.

The question of how much royal work they carry out may have an impact on the extent to which the Prince of Wales continues to fund them with the money he receives from the Duchy of Cornwall. –The Times

Also to be addressed on Monday will be security for the pair.


Tyler Durden

Mon, 01/13/2020 – 09:56

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TSLA Tops $500 For First Time

TSLA Tops $500 For First Time

With a market cap over $90 billion now (almost as big as VW – the world’s largest market cap automaker – which sold 10.9mm cars in 2019, compared to TSLA’s 367,500…)

Source: Bloomberg

TSLA shares have gone even more parabolic-er, opening up over 5%, topping $500 for the first time in its history, as the algos run the stops from last week’s highs…

So what’s driving the surge?

It’s not fun-durr-mentals…

Source: Bloomberg

Even though Oppenheimer & Co analyst Colin Rusch raised his target on the stock to $612 from $385

“While TSLA has stumbled through growing pains, we believe the company has reached critical scale sufficient to support sustainable positive FCF,” Oppenheimer’s Rusch wrote.

“At the same time, we believe the company’s risk tolerance, ability to implement learnings from past errors, and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace.”

Not everyone is a gung-ho…

Whatever is driving TSLA higher seems to be the same thing that is forcing AAPL higher every day…

Source: Bloomberg

Correlation is not causation when your salary depends on it…

Source: Bloomberg


Tyler Durden

Mon, 01/13/2020 – 09:40

via ZeroHedge News https://ift.tt/3a6nEEk Tyler Durden

More Holes in the ‘Imminent Threat’ Story on Soleimani

NBC is reporting that President Donald Trump was mulling the hit on Iranian Maj. Gen. Qassem Soleimani seven months ago, with war hawks such as John Bolton urging him to go for it. This further erodes the administration’s claim that the assassination was done to stop an “imminent” attack on U.S. lives.

“According to five current and senior administration officials,” NBC reports, Trump gave the order in June 2019, “with the condition that Trump would have final signoff on any specific operation to kill Soleimani.” Trump said that signoff would come if any Americans were killed, their sources said, which “explains why assassinating Soleimani was on the menu of options that the military presented to Trump two weeks ago for responding to an attack by Iranian proxies in Iraq.” That proxy attack killed a U.S. contractor.

The strike was carried out on January 3. Secretary of State Mike Pompeo quickly and repeatedly attributed it not to retribution but to an alleged imminent threat to dozens (sometimes “hundreds”) of American lives.

The killing looked like something former National Security Advisor John Bolton would have hatced, but Bolton has been gone since September. Now it seems that Bolton’s imprint may have been on this operation after all. From NBC:

After Iran shot down a U.S. drone in June, John Bolton, Trump’s national security adviser at the time, urged Trump to retaliate by signing off on an operation to kill Soleimani, officials said. Secretary of State Mike Pompeo also wanted Trump to authorize the assassination, officials said.

Yesterday, Defense Secretary Mark Esper told Face the Nation that he knew of no “specific evidence” to support the claim that Iran was planning embassy attacks. Rep. Justin Amash (I–Mich.) has been blasting the Trump administration for continuing to push this story:


FREE MINDS

Anti-Catholic law in Montana comes to Supreme Court. When it considers Espinoza v. Montana Department of Revenue later this month, the U.S. Supreme Court “has the opportunity to do more than just settle the fate of one controversial tax credit; it could also junk Montana’s Blaine Amendment, finding it in violation of the Constitution’s religious-freedom and equal-protection clauses,” writes Nick Sibilla at The Atlantic. “In doing so, it would set a strong precedent against any law born of bigotry.”

The case concerns “a modest tax-credit scholarship program in Montana,” notes Sibilla, but it “could have major ramifications for educational-choice programs across America, which help nearly half a million students attend private schools.”


FREE MARKETS

Times editorial board lays out plans to “fortify” the FDA. On Sunday, the New York Times editorial board praised the Food and Drug Administration while worrying over its (lack of) leadership and admitting that it often fails. Its proposed solutions for “fortifying” the agency? Giving it even more power, of course. (Sigh.) To fix the FDA’s flaws, the paper claims, “the agency needs to be made stronger, not weaker.”

“Fortunately,” they write, “options for fortifying the F.D.A. abound”:

For instance, laws that would make it easier for regulators to police the cosmetics industry and to hold medical device companies to account have been floating through Congress for years. A group of former F.D.A. commissioners last year proposed an even bolder fix: Restore the agency’s autonomy by extracting it from the Department of Health and Human Services. The F.D.A.’s decisions used to be final, but for decades now they have been subject to layers of political interference. Making the agency independent, as the Federal Reserve and the Social Security Administration are, could help reverse that trend.


ELECTION 2020

Vermin Supreme won the New Hampshire Libertarian Party convention’s pick for the party’s presidential nomination. Heavy explains what this means:

The Libertarian Party hosts a series of primaries and caucuses where non-binding votes are cast, indicating a state party’s preference for its presidential candidate. These preferences are not binding and delegates who are sent to the national convention can vote for whichever candidate they prefer. New Hampshire had the first primary. This self-funded presidential preference primary was actually conducted by mail, with results announced on January 11….

So the voting of Vermin Supreme was a statement of preference, but it does not bind the delegates when they vote at the national convention on May 21-25, 2020 in Austin, Texas.


QUICK HITS

  • It was sunny and reached 70 degrees in Washington, D.C., yesterday. The White House then tweeted this picture:

Presumably, it’s a picture from earlier last week, when it did snow, although the conspiracy theorists of Twitter are having a field day:

  • Baylen Linnekin explores the FDA’s changes to food nutrition labels.

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