Trump Says China Is Paying for His $16 Billion Tariff Bailout to Farmers. That’s Simply Not True.

For the past year, much of the debate over President Donald Trump’s tariffs has been focused, stubbornly, on who is paying for them.

The truth is that Americans are paying. When tariffed goods from China arrive at American ports, the importers must pay a tax of 10 percent (soon to increase to 25 percent). Importers pass that cost along to buyers, who pass it along to distributors, who pass it along…until it gets to you.

This isn’t exactly a state secret. It’s basic economics. It has been demonstrated to be true not only in theory but in several studies of how Trump’s tariffs are affecting the cost of goods. Perhaps most obviously, here is how goods subject to tariffs have increased in price over the past year relative to non-tariff goods:

Nonetheless, this has been subject to debate, because the president has built an alternate reality in which none of these obvious facts are true. In Trump’s fantasy world, the tariffs are basically free money pouring into federal coffers from China. He has made this claim in tweet after tweet, and high-ranking administration officials have repeated it in public statements. Treasury Secretary Steve Mnuchin tied himself in knots earlier this week to avoid stating the obvious—that Americans pay for the tariffs—and Trump was reportedly unhappy with Larry Kudlow, one of his senior economic aides, after Kudlow admitted to Fox News that the tariffs are being paid by Americans.

This might seem like nothing more than a snoozeworthy debate over semantics or economic theory or government PR strategies. But it matters a lot.

Case in point. In response to American tariffs on Chinese goods, China has effectively cut off purchases of many American farm goods—soybeans, most prominently. Previously, about 40 percent of all American-grown soybeans were exported to China. The loss of that export market has caused a glut of supply, leading prices to fall by as much as 25 percent and leaving farmers in the lurch. So yesterday Trump announced a second round of bailouts for American farmers stung by those retaliatory tariffs. This new round of farm bailouts will cost $16 billion, on top of the $12 billion that was redistributed to farmers last year.

Here’s why the debate over who pays for the tariffs matters. Listen to how Trump justified the new round of bailouts on Thursday:

“It all comes from China,” he said. “We’ll be taking in, over time, hundreds of billions of dollars in tariffs and charges on China, and our farmers will be greatly helped.”

The farm bailout is costless, Trump is arguing, because he’s taking money from China and giving it to American farmers. That argument could only hold water if China wer paying for the tariffs.

To repeat: Americans are paying for the tariffs.

Even if you believe, as some Trump supporters routinely argue, that China will ultimately “pay” for the tariffs in the form of lost American investment and a reduction in long-term growth—which is possible, yes—that does not change the basic fact that the tariff revenue being collected by the federal government today and redistributed to farmers tomorrow is coming out of American wallets.

Again: Americans are paying for the tariffs.

For what it’s worth, Trump is wrong about the numbers too. The federal government has collected about $40 billion in tariff revenue since last year—not hundreds of billions of dollars. That means the $28 billion spent bailing out farmers accounts for about 70 percent of all tariff revenue.

It’s also obvious political favoritism. Sure, farmers have been hit hard by the trade war, but so have plenty of other industries. How long before they start lining up for their own bailouts?

There are plenty of other questions about the farm bailout program, from the technical to the esoteric. The funding will flow through a New Deal–era agriculture insurance program. Taxpayers for Common Sense, a fiscal watchdog, describes the arrangement as “a backdoor revival and expansion” of a discredited farm subsidy program, “but with a few twists that make it more confusing and more costly.”

Or as trade lawyer and Cato Institute scholar Scott Lincicome put it:

Honestly, I can see why this seems repetitive.

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The Week That Finally Burst The Tesla Stock Bubble

It was a week that Elon Musk will want to forget: after a chorus of skepticism about Tesla from the very same analysts that have been bullish on Musk and the automaker for years, the Tesla stock bubble is officially bursting, according to Bloomberg

The week started with Wedbush proclaiming that the company faces a “Kilimanjaro-like uphill climb” to hit its profitability goals for the second half of the year. Analyst Dan Ives also slashed his price target from $275 to $230 and called the company‘s current state of affairs a “code red situation”.

The week then continued with Morgan Stanley analyst Adam Jonas, who on a call with investors mid-week, said “supply exceeds demand, they’re burning cash, nobody cares about the Model Y, they raised capital near lows” and there’s been “no strategic buy-in”.  Ominously, he added: “Tesla’s is not seen as a growth story, it’s seen as a distressed credit and restructuring story.” 

This came after Jonas’ note  on Tuesday, which saw the investment bank lower its “bear case” target to on the company to just $10 per share.

Later in the same week, longtime Tesla bull Gene Munster capitulated and issued a stern warning that he believed Tesla will miss its 2019 delivery target range. Munster cited shrinking sales in China and the ongoing trade war as the reason for his increasingly bearish commentary. Munster cut his estimate for Tesla’s full year global car sales by about 10%, to 310,000 vehicles, versus the 360,000 vehicle target that the company put out back in March.

Citigroup and Robert W. Baird analysts also slashed their target prices during the week. 

The 10% drop in Tesla’s stock this week leaves it down about 43% for the year, wiping out about $23 billion in shareholder value and putting the company back below GM and Ford in terms of market cap. The company’s 2025 bonds also continued to get crushed, closing the week trading at about 81 cents on the dollar and sporting a nearly 9.3% yield.  

The only positives during the week were short lived – namely when the stock tried to bounce on Thursday after a failed pump “leaked” email from Elon Musk stated that the company was conveniently going to have a “record” second quarter. By Friday, that shine had worn off, and the stock had continued its fall. 

The timing for Wall Street to lose faith in Tesla is stunning: it’s just five months after many thought the company was going to be able to reach sustainable profitability. Tesla stock had ended 2018 on an upbeat note, soaring on year end sales and production numbers.

Musk’s claim in an e-mail last week that the company risked running out of cash in 10 months without “hardcore” cost cuts didn’t help his cause. It also didn’t help that this narrative starkly stood at odds with what he told people on a call when he was trying to close the company’s recent $2.4 billion financing. 

And this came after we reported a former NHTSA head and Consumer Reports both shed continued skepticism on the company’s Autopilot feature, with the former saying it should be recalled and the latter calling it “far less competent than a human”. This likely cast doubt on Musk’s already batshit crazy optimistic prediction of having “a million robotaxis” on the road in coming years. 

This week was also preceded by three price cuts on Tesla models over three months, Musk warning that a “difficult” road was ahead and a massive $700 million loss in Q1. In late April, even short-seller Citron Research abandoned his controversial long position in the company.

Barclays analyst Brian Johnson said: “Tesla’s stock for a while was wildly inflated as many investors thought that the company could not only become a very profitable large automaker, but will also dominate other fields like solar energy, energy storage and autonomous mobility. But now the auto part seems to be headed more towards a niche automaker. Those other businesses? Nowhere to be seen.” 

Roth Capital Partners analyst Craig Irwin said: “Investors now care more about units, average pricing, gross margins and the expectations of profits.”

Bradford Meikle, a senior analyst for Williams Trading concluded: “Electric vehicles are certainly the future of transportation, but I don’t think Tesla will be the one that profits from it. The value of the brand is going down every day.”

With the “growth” story now over, until proven otherwise, we eagerly look forward to what next week brings. 

via ZeroHedge News http://bit.ly/2HSPIxK Tyler Durden

Crossfit Deletes Facebook and Instagram After User Group Is Deplatformed

For all the the talk of arbitrary, capricious, or ideologically motivated deplatforming of people, publications, and groups by Facebook, Twitter, YouTube, and other social media platforms, there’s been less discussion about high-profile individuals and companies deleting their accounts in response to what they see as unfair, unethical, or misguided behavior.

That might change now that CrossFit, the immensely popular exercise and nutrition enterprise, has announced that it is permanently pulling its Facebook and Instagram accounts. According to an official statement published yesterday:

Facebook deleted without warning or explanation the Banting7DayMealPlan user group. The group has 1.65 million users who post testimonials and other information regarding the efficacy of a low-carbohydrate, high-fat diet. While the site has subsequently been reinstated (also without warning or explanation), Facebook’s action should give any serious person reason to pause, especially those of us engaged in activities contrary to prevailing opinion….

Facebook…serves as a de facto authority over the public square, arbitrating a worldwide exchange of information as well as overseeing the security of the individuals and communities who entrust their ideas, work, and private data to this platform. This mandates a certain responsibility and assurance of good faith, transparency, and due process.

CrossFit, Inc., as a voluntary user of and contributor to this marketplace, can and must remove itself from this particular manifestation of the public square when it becomes clear that such responsibilities are betrayed or reneged upon to the detriment of our community.

The statement lists eight additional complaints about Facebook (which owns Instagram), These include the platform’s willingness to censor certain accounts or pages at the insistence of governments, its “weak intellectual property protections,” and its alleged willingness to act “in the service of food and beverage industry interests” by removing “accounts of communities that have identified the corrupted nutritional science responsible for unchecked global chronic disease.” Despite CrossFit’s strong condemnation—at one point, the statement declares that by purging dissenting views about low-carb, high-protein diets, “Facebook is complicit in the global chronic disease crisis”—the company does hold open the possibility of returning if Facebook and Instagram restore “good faith, transparency, and due process.”

This is one way that marketplaces—whether for goods and services or for ideas—are supposed to work. In the parlance of political economist Albert O. Hirschman, CrossFit is not simply exercising its right of “exit” by leaving Facebook but also its right of “voice” by complaining publicly.

In the best of all worlds, such actions wouldn’t be necessary. Instead of taking it upon themselves to police more than true threats and instead of calling for government regulation of expression, Facebook and other social media services would treat their platforms as free-speech zones and focus instead on providing users with tools to personalize their experiences.

But that isn’t the world we live in, so CrossFit’s public excoriation of Facebook serves an important corrective function. If more high-profile individuals, companies, content creators, and accounts take similar action, it’ll be a more libertarian outcome than the government regulation increasingly supported by both liberals and conservatives.

Bonus video: Six years ago, Reason interviewed CrossFit founder Greg Glassman, who talked about being “a rabid libertarian” and a contrarian when it comes to workouts, diets, and more:

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Crossfit Deletes Facebook and Instagram After User Group Is Deplatformed

For all the the talk of arbitrary, capricious, or ideologically motivated deplatforming of people, publications, and groups by Facebook, Twitter, YouTube, and other social media platforms, there’s been less discussion about high-profile individuals and companies deleting their accounts in response to what they see as unfair, unethical, or misguided behavior.

That might change now that CrossFit, the immensely popular exercise and nutrition enterprise, has announced that it is permanently pulling its Facebook and Instagram accounts. According to an official statement published yesterday:

Facebook deleted without warning or explanation the Banting7DayMealPlan user group. The group has 1.65 million users who post testimonials and other information regarding the efficacy of a low-carbohydrate, high-fat diet. While the site has subsequently been reinstated (also without warning or explanation), Facebook’s action should give any serious person reason to pause, especially those of us engaged in activities contrary to prevailing opinion….

Facebook…serves as a de facto authority over the public square, arbitrating a worldwide exchange of information as well as overseeing the security of the individuals and communities who entrust their ideas, work, and private data to this platform. This mandates a certain responsibility and assurance of good faith, transparency, and due process.

CrossFit, Inc., as a voluntary user of and contributor to this marketplace, can and must remove itself from this particular manifestation of the public square when it becomes clear that such responsibilities are betrayed or reneged upon to the detriment of our community.

The statement lists eight additional complaints about Facebook (which owns Instagram), These include the platform’s willingness to censor certain accounts or pages at the insistence of governments, its “weak intellectual property protections,” and its alleged willingness to act “in the service of food and beverage industry interests” by removing “accounts of communities that have identified the corrupted nutritional science responsible for unchecked global chronic disease.” Despite CrossFit’s strong condemnation—at one point, the statement declares that by purging dissenting views about low-carb, high-protein diets, “Facebook is complicit in the global chronic disease crisis”—the company does hold open the possibility of returning if Facebook and Instagram restore “good faith, transparency, and due process.”

This is one way that marketplaces—whether for goods and services or for ideas—are supposed to work. In the parlance of political economist Albert O. Hirschman, CrossFit is not simply exercising its right of “exit” by leaving Facebook but also its right of “voice” by complaining publicly.

In the best of all worlds, such actions wouldn’t be necessary. Instead of taking it upon themselves to police more than true threats and instead of calling for government regulation of expression, Facebook and other social media services would treat their platforms as free-speech zones and focus instead on providing users with tools to personalize their experiences.

But that isn’t the world we live in, so CrossFit’s public excoriation of Facebook serves an important corrective function. If more high-profile individuals, companies, content creators, and accounts take similar action, it’ll be a more libertarian outcome than the government regulation increasingly supported by both liberals and conservatives.

Bonus video: Six years ago, Reason interviewed CrossFit founder Greg Glassman, who talked about being “a rabid libertarian” and a contrarian when it comes to workouts, diets, and more:

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“GlobalCoin” – Facebook Aims To Launch Payments-Focused Cryptocurrency In 2020

Authored by Marie Huillet via CoinTelegraph.com,

Social media giant Facebook plans to launch its own payments-focused cryptocurrency “Globalcoin” in 2020, according to a BBC news report published on May 24.

image courtesy of CoinTelegraph

The BBC reports that tests for the forthcoming digital currency are planned to take place by the end of 2019. While Globalcoin is ostensibly the coin’s current name within the company, it has not been confirmed that it will retain the same name once development of the project is completed.

According to the BBC, Facebook founder Mark Zuckerberg met Bank of England governor Mark Carney last month to discuss the prospects and risks involved in its cryptocurrency launch.

Aside from this, the firm has reportedly consulted with United States Treasury officials on operational and regulatory matters — in particular in regard to identity checks procedures and mitigating money laundering risks, the BBC claims.

The report also refers to Facebook’s ongoing discussions with global payments services provider Western Union, reportedly as part of its research into providing affordable access to money transfer services for the unbanked.

The social media giant’s forthcoming native cryptocurrency will purportedly seek to disrupt or altogether bypass banking networks in order to remove financial barriers and lessen consumer costs.

To realize its crypto payments network, the company will need to cooperate with banks and brokers worldwide to access currency exchange services and fiat on-ramping, the BBC notes. This is ostensibly the motivation behind its newly-created financial tech firm, Libra Networks LLC, which was registered in Geneva earlier this month.

As reported, rumors of Facebook’s plans to integrate a cryptocurrency for WhatsApp users first surfaced in December 2018. Further alleged details of the highly secretive project emerged this February, with sources claiming the forthcoming crypto will be a fiat-pegged stablecoin.

Notably, Facebook purportedly plans to rehaul its messaging infrastructure and integrate its three wholly-owned apps — WhatsApp, Messenger and Instagram — under one canopy, bringing its cryptocurrency potential exposure to a combined 2.7 billion users each month.

Facebook is reportedly seeking $1 billion in backing for the project from Visa and MasterCard and has also allegedly met with VC mogul Tim Draper to discuss possible investment.

On May 10, Cointelegraph reported that the U.S. Senate and Banking committee wrote an open letter to Facebook seeking information on its alleged crypto project, inquiring how the company plans to ensure consumer protection and safeguard financial information.

 

via ZeroHedge News http://bit.ly/2QoJQjt Tyler Durden

Latest China Tariffs Will Cost American Households $831 Per Year, Fed Says

It’s tempting to believe President Trump’s insistence that Chinese companies will bear the costs of US tariffs, but as a chorus of emergent trade experts have pointed out, this simply isn’t true.

American consumers will bear at least some of the costs of the new tariffs, though the extent will depend on how companies react to the new taxes (that is, whether they will pass it on to consumers, tolerate the gross margin hit, or decide to rejigger their supply chains).

NYFED

But as analysts scramble for a ‘ballpark’ figure representing how much this latest round of tariff escalation (going to 25% from 10% on $200 billion in Chinese goods) will cost the average American household, a team of researchers working with the Federal Reserve Bank of New York have an answer of their own: $831.

That figure stems from an update of methodologies the team devised last year. Their calculations are based on two categories: taxes and ‘dead weight’ costs.

A ‘dead weight’ cost is incurred when tariffs push a company to find a new, less efficient source for a given product. For example: If a given Chinese import is hit with a 10% tariff, a company can either choose to pay the additional $10 per $100 in taxes, or it can find another producer of the same product that isn’t subject to tariffs. Say, for example, the company switches to importing the products from a Vietnamese factory where, because the factory isn’t as efficient, the same product for which the company once paid $100 will instead cost $109.

As of November 2018, the researchers calculated that American companies were paying $3 billion per month in added taxes, while shouldering another $1.4 billion in deadweight losses. Annualized, this amounts to $52.8 billion, or $414 per household.

The team plugged in the new tariff rates and came up with a new number: $831 per household per year. Though there is one other factor that they had to account for. Tariffs and deadweight costs don’t rise proportionally. Rather, as tariffs increase, more companies opt to shift to cheaper producers. Oftentimes, the tax revenue collected by the government actually falls. This is ultimately a net negative for the economy because, while tax revenue can theoretically be rebated (in the form of spending like, say, a farm bailout) losses to inefficiencies are simply lost.

Liberty

The Fed’s estimate is hardly the most extreme: A study published late last year by ImpactECON and commissioned by Koch-supported lobbyists warned that the tariffs, as they stood before the most recent escalation, would cost households $2,000 per year.

But if the researchers are correct, and the tariffs stir up more of that inflation the Fed has been waiting for, it could quickly become a self-perpetuating cycle of rising costs as the central bank confronts the fact that it has ‘no choice’ but to raise interest rates.

via ZeroHedge News http://bit.ly/2Qpj3Uq Tyler Durden

Watch: Sickly Nadler Passes Out During De Blasio Presser

Maybe he’s tired from signing all of those subpoenas.

One day after Nancy Pelosi publicly questioned President Trump’s mental health and suggested that his family should consider an ‘intervention’, Jerry Nadler – the chairman of the Judiciary Committee and point man for various Congressional investigations involving the president, staff from his 2016 campaign, and members of his administration – appeared to pass out during a press conference held by New York City Mayor Bill de Blasio. 

Footage shot by NBC New York shows de Blasio stopping a press conference at P.S. 199 in the Upper West Side of Manhattan to come to Nadler’s aid, offering the Congressman water, and remarking that he appeared to be dehydrated.

When de Blasio asked if he was okay, Nadler responded with a faint ‘no’.

Here’s video of the aftermath from another angle:

Nadler spokesman Daniel Schwartz told CNN that the congressman “is OK” and that he “seems to have been dehydrated and it was very warm in the room. He is now responsive and receiving a check-up.”

via ZeroHedge News http://bit.ly/2HAC1Es Tyler Durden

How Often Has the U.S. Supreme Court Struck Down a Federal Law?

Everybody knows that the American courts exercise the power to evaluate the constitutionality of legislation and declare those laws that violate the Constitution to be legally void and of no effect. To a surprising degree, it has been unclear how often the courts have exercised that power.

The problem started at the beginning. The U.S. Constitution is clear about such basic governance issues as whether the president has the power to veto bills, whether Congress can override that veto, and how bills become law. The Constitution famously does not say that the federal courts have the power of judicial review; it merely says that the “judicial Power of the United States” shall be vested in the Supreme Court and any inferior courts that Congress might create.

It is a myth that Chief Justice John Marshall invented, created or established the power of judicial review in his 1803 opinion in the case of Marbury v. Madison. Such a power was widely recognized in the years after the American Revolution and had been exercised by numerous courts, including the U.S. Supreme Court, prior to 1803.  But Marshall did provide a compelling account of that power, and his opinion eventually became a touchstone for those seeking to explain, justify or criticize such a power.

Because the Constitution does not explicitly set out the power of judicial review, it has been far more contested and far less systematically accounted for than other such basic features of the American constitutional system as the presidential veto. Even the name “judicial review” is a modern invention, coined by the young Princeton constitutional scholar Edward Corwin at the beginning of the twentieth century to provide a shorthand description for the increasingly prominent activity of the courts in scrutinizing the constitutionality of duly enacted statutes. Corwin coined the term in the midst of a scholarly and popular debate over the origins, scope and legitimacy of the power of judicial review.

Among the issues in that debate was how often the U.S. Supreme Court had actually exercised the power of judicial review. The answers were surprisingly diverse. Since the Constitution did not specify that there was such a power of judicial review, it also did not specify the form by which it should be exercised. The Constitution specified that presidential vetoes should be recorded in the journal of each legislative chamber. The number of vetoes could be numbered and counted. There is no such requirement when the courts strike down a law as unconstitutional.

When, in 1792, the 2nd Congress first heard the news from a constituent that a federal judge had declared a federal statutory provision unconstitutional, there was a brief debate over what kind of response might be appropriate and whether a system needed to be put in place so that the legislature would be promptly informed when such actions were taken. But nothing was done. The courts made decisions and issued opinions, but no one designated instances of judicial review, reported such events to Congress, or put them down in an official record.

After the constitutional centennial, the Supreme Court’s reporter, Bancroft Davis, took it upon himself to compile a list of cases in which the Court had struck down an act of Congress as unconstitutional and included it in a historical appendix to a volume of the Court’s opinions in 1889. The Davis list proved to be controversial, and the historical debate over the incidence of judicial review was politicized. Populists and Progressives argued that the Court had rarely exercised the power of judicial review – and thus should rarely exercise it in the future since it was of dubious legitimacy. Conservatives argued that the Court had exercised the power of judicial review more often – and should keep on exercising it in the future to temper the passions of popular majorities. Some argued that John Marshall created the power of judicial review out of whole cloth and that the Court rarely dared exercise the power afterwards. Some went further and denied that even Marbury itself could properly be understood as an example of judicial invalidation of a federal law. Others argued that Marbury was just one of many instances of judicial review and was just one example of a venerable judicial practice.

Near the end of his career Edward Corwin played a big role in putting that debate to rest by compiling a now-canonical list of cases in which the Court invalidated a federal law. But Corwin’s list is wrong.

You’ll really know the rest of the story if you read Repugnant Laws. You’ll get another taste in a future blog post.

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New Julian Assange Indictment Crushes the Hopes of Journalists Who Thought Their Press Passes Would Save Them

Any hope that professional journalists may have had that the Justice Department’s prosecution of WikiLeaks founder Julian Assange would leave them and the First Amendment unscathed was decisively crushed by the indictment unsealed yesterday. While DOJ officials are still trying to assure reporters that the Trump administration values and respects their work (I know), it is now abundantly clear that the case against Assange is an unprecedented, sweeping, and deeply dangerous assault on freedom of the press.

“Some say that Assange is a journalist and that he should be immune from prosecution for these actions,” John Demers, the head of the Justice Department’s National Security Division, told reporters yesterday. “The department takes seriously the role of journalists in our democracy and we thank you for it. It is not and has never been the department’s policy to target them for reporting.” There is no need to worry, Demers suggested, because Assange is “no journalist.”

That distinction is not only debatable but constitutionally irrelevant, since “freedom of the press” refers to a method of mass communication, not a professional guild. It belongs to all of us, not just to people employed by respectable news organizations. Yet some of those people have endorsed this bogus distinction because they despise Assange, think they are entitled to special privileges because of their professional status and standards, and vainly hope their press passes will save them.

Assange, CNN contributor Frida Ghitis wrote last month, “is not a journalist and therefore not entitled to the protections that the law—and democracy—demand for legitimate journalists.” Washington Post columnist Kathleen Parker echoed that sentiment, endorsing the view that Assange is “a sociopathic interloper operating under the protection of free speech.” Real journalists, she said, go through “a lot of worry and process” before they publish embarrassing information that the government wants to keep under wraps. Assange, by contrast, “is not…a journalist, despite his claiming to be, because he isn’t accountable to anyone.”

The indictment highlights details that reinforce this view, noting that WikiLeaks published unredacted versions of Pentagon war documents and State Department cables that included names of informants who foreseeably could be arrested or killed once their identities were revealed. That kind of unethical sloppiness is indeed troubling, but it is not a necessary element of the charges Assange faces.

Counts 9 through 17 involve “disclosure of national defense information,” a felony punishable by up 10 years in prison. That penalty applies to anyone who “willfully communicates, delivers, transmits or causes to be communicated” such information to “any person not entitled to receive it.” This felony is the bread and butter of any journalist who covers national security issues and publishes information that the government would prefer to keep secret.

As First Amendment scholars have noted, that statute squarely applies to indisputably valuable journalism such as publication of the Pentagon Papers, the secret history of the Vietnam war that gave rise to the landmark 1971 Supreme Court case New York Times v. United States. In that decision, the Court unanimously ruled that the government could not prevent publication of stories based on the Pentagon Papers. But it did not address the question of whether publishers, editors, and reporters could be prosecuted after the fact. That is the question posed by the Assange indictment, no matter how much the Justice Department wants to pretend otherwise.

Count 1 alleges that Assange conspired to receive national defense information, and Counts 2 through 8 allege that he obtained it, all of which are likewise felonies punishable by up to 10 years in prison. Again, the indictment plays up conduct that most professional journalists avoid, such as publicly soliciting classified material (on the WikiLeaks website), asking for specific documents, and offering to help a source conceal his identity by cracking a government password. But these crimes do not require such unusual tactics. Any reporter who talks to a source with access to classified information, arranges to receive that information, and promises the source confidentiality is guilty of violating those provisions.

New York Times reporter Charlie Savage, who covers national security issues, understands all of that. “For the purposes of press freedoms,” he notes, “what matters is not who counts as a journalist, but whether journalistic activities— whether performed by a ‘journalist’ or anyone else—can be crimes in America.” Savage quotes Jameel Jaffer, director of Columbia University’s Knight First Amendment Institute. “The charges rely almost entirely on conduct that investigative journalists engage in every day,” Jaffer says. “The indictment should be understood as a frontal attack on press freedom.”

The Justice Department is hoping to blunt the backlash against that attack by picking a widely reviled figure as a test case. But anyone who actually believes in civil liberties understands that they mean nothing if they can be violated when the target happens to be unpopular. Just as the ACLU is not endorsing the views of Nazis or Klansmen when it defends their First Amendment rights, you don’t have to like Assange (or believe he is a real journalist) to recognize the importance of the principle at stake in his case.

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Red Flag For Oil Markets: Asian Refining Margins Plunge To 16-Year Low

Authored by Irina Slav via OilPrice.com,

Persistent pressure on profit margins has forced Asian refiners to start considering a reduction in their run rates, Reuters reports, citing unnamed sources from the industry. According to the sources, higher international oil prices are behind the unfavorable development, which has seen refiners’ margins drop to the lowest since the spring of 2003, according to Reuters data.

Among the refiners considering run rate cuts are South Korea’s SK Energy, the Singapore Refinery Company, and at least one refiner in Thailand. Some Chinese independent refiners are already running at less than 50 percent of capacity because of the pressure on margins, one Chinese analyst told Reuters.

International oil prices have risen since the start of the year on the back of OPEC+ production cuts, which has combined with U.S. sanctions on Venezuela and Iran to shrink supply. The recent spike in U.S.-Iran tensions has also been bullish for prices. Interestingly enough, even so, over the past month both Brent and West Texas Intermediate have generally trended lower despite several spikes. However, this decline has not been enough to push Asian refiners’ margins higher.

There may be another reason for this, too:fuel glut coming from China. An increase in refining capacity, particularly from the independent refiners, also called teapots, and another increase in oil product export quotas have seen a substantial increase in the availability of Chinese oil products in the region, and this increase has added its own pressure to refining margins.

Despite the glut and despite their run rate cuts, Chinese refiners will be processing even more crude this year: earlier this week Beijing allocated a new round of oil product export quotas and they were higher than the respective quotas last year. Since the start of the year, total oil product export quotas have hit 50 million tons.

via ZeroHedge News http://bit.ly/2Eq13o3 Tyler Durden