Supreme Court Strikes Down Federal Law That Prohibited States From Legalizing Sports Gambling

In a major victory for federalism advocates, the U.S. Supreme Court today struck down a provision of federal law that prohibited state governments from legalizing sports gambling. “That provision unequivocally dictates what a state legislature may and may not do,” the Supreme Court observed in Murphy v. National Collegiate Athletic Association. “It is as if federal officers were installed in state legislative chambers and were armed with the authority to stop legislators from voting on any offending proposals. A more direct affront to state sovereignty is not easy to imagine.”

At issue in Murphy v. N.C.A.A. was a provision of the Professional and Amateur Sports Protection Act of 1992 (PASPA), which made it illegal for “a governmental entity to sponsor, operate, advertise, promote, license, or authorize by law or compact” sports betting.

The state of New Jersey ran afoul of PASPA after voters amended the state constitution in order to legalize sports betting at racetracks and casinos. State lawmakers followed up by enacting a partial repeal of the existing state ban.

That partial repeal drew the ire of the National Collegiate Athletic Association, the National Basketball Association, the National Football League, the National Hockey League, and the Office of the Commissioner of Baseball, all of which went to court in an effort thwart the Garden State’s legalization effort. The sports leagues argued that the state had explicitly contravened the federal rule barring state legalization as spelled out in PASPA. The U.S. Justice Department agreed with the leagues and filed a supporting brief urging SCTOUS to rule against New Jersey.

In its opinion today, the Supreme Court acknowledged that New Jersey had indeed violated PASPA, but then concluded that the provision at issue was itself unconstitutional under the federalism principles contained in the 10th Amendment. “The legislative powers granted to Congress are sizable, but they are not unlimited,” the Court observed. “The Constitution confers on Congress not plenary legislative power but only certain enumerated powers. Therefore, all other legislative power is reserved for the States, as the Tenth Amendment confirms. And conspicuously absent from the list of powers given to Congress is the power to issue direct orders to the governments of the States.”

The majority opinion in the case was written by Justice Samuel Alito and joined by Chief Justice John Roberts and Justices Anthony Kennedy, Clarence Thomas, Elena Kagan, and Neil Gorsuch. Justice Stephen Breyer concurred in part and dissented in part. Justice Ruth Bader Ginsburg dissented in full, joined by Justice Sonia Sotomayor.

The Supreme Court’s opinion in Murphy v. N.C.A.A. is available here.

Click below to watch a Federalist Society video on the case featuring yours truly.

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Supreme Court Strikes Down Federal Sportsbetting Ban

In a decision that could rob the American Mafia of one of its few remaining sources of income – and potentially save the ailing Atlantic City – the Supreme Court on Monday struck down a federal ban on sportsbetting, saying states should be free to decide whether to legalize the business. The decision, according to the Washington Post “is sure to set off a scramble among the states to find a way into a billion-dollar business.” It could also negatively impact revenues in Las Vegas because, until Monday, betting on live sporting events was only legal in Nevada – though a few other states have sports lotteries.

Mafia

For example, the state of New Jersey, famously the setting of the landmark television series “the Sopranos,” could use the ruling to help revitalize its ailing Atlantic City casinos by legalizing sportsbetting at the facilities.  Indeed, the bankrupt city that was once the only alternative to Las Vegas on the east coast could reap a badly needed windfall from the decision (which is great news for anybody who threw caution to the wind and bought the city’s debt).

WaPo estimates that the underground sportsbetting economy – an underworld that is dominated by various criminal groups – could be worth as much as $150 billion a year (give or take a few kneecaps). Former New Jersey Gov. Chris Christie spearheaded efforts to legalize sportsbetting.

Back in 2011, New Jersey voters – already crushed by some of the highest taxes in the nation – approved a proposal to allow sports betting. Christie signed a law authorizing it and dared the federal government to “try and stop us.”

Tony Soprano couldn’t have said it better himself.

Of course, Christie’s tough talk was ultimately ineffective. A court struck down the law because it violated the Professional and Amateur Sports Protection Act (the same law that was rendered effectively toothless by Monday’s decision) and, later, a lower court closed a loophole that would’ve allowed Jersey to drop criminal penalties for the practice.

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Breaking down America’s worst long-term challenges: #1- Debt.

On October 22, 1981, the national debt in the United States crossed the $1 trillion threshold for the first time in history.

It took nearly two centuries to reach that unfortunate milestone.

And over that time the country had been through a revolution, civil war, two world wars, the Great Depression, the nuclear arms race… plus dozens of other wars, financial panics, and economic crises.

Today, the national debt stands at more than $21 trillion– a milestone hit roughly two months ago.

This means that the government added $20 trillion to the national debt in the 37 years between October 22, 1981 and March 15, 2018.

That’s an average of nearly $1.5 BILLION added to the national debt every single day… $62 million per hour… $1 million per minute… and more than $17,000 per SECOND.

But the problem for the US government is that this trend has grown worse over the years.

It took only 214 days for the government to go from $20 trillion in debt to $21 trillion in debt– less than eight months to add a trillion dollars to the national debt.

That’s an average of almost $52,000 per second.

Think about that: on average, the US national debt increases by more in a split second than the typical American worker earns in an entire year.

And there is no end in sight.

At 105% of GDP, America’s national debt is already larger than the size of the entire US economy. (By comparison the national debt was just 31% of GDP in 1981.)

Plus, the government’s own projections show a steep increase to the debt in the coming years and decades.

The Treasury Department has already estimated that it will borrow $1 trillion this fiscal year, $1 trillion next year, and another trillion dollars the year after that.

They’re also forecasting the national debt to exceed $30 trillion by 2025.

To be fair, debt isn’t always bad. In fact, sometimes debt can be useful.

Businesses and individuals use debt all the time to shrewdly finance productive investments.

Real estate investors, for instance, often borrow most of the money they need to purchase a property once they determine that the rental income should more than cover the debt service.

In this way, when applied prudently, debt can actually help build wealth.

And the US federal government did the same thing in its early history.

It was an incredibly astute move on the government’s part, for example, to go into debt to finance the Louisiana Purchase back in the early 1800s, which dramatically expanded the size of the budding nation.

These days, however, the government flushes money down the toilet in the most wasteful ways imaginable, both big and small.

We’ve covered some of the more ridiculous examples in our normal conversations, from that $2 billion Obamacare website to the $856,000 that the National Science Foundation spent teaching mountain lions to run on treadmills.

Even the government’s more legitimate expenses are absolutely colossal now.

Last year the government spent HALF of its budget just to pay for Social Security and Medicare.

The situation is so dire that the government spends more than its entire tax revenue just on these mandatory entitlement programs, plus Defense and interest on the debt.

Even if you could eliminate entire departments of government, they would still be running a budget deficit and going deeper into debt.

The larger the national debt becomes, the more interest the government has to pay each year.

And interest payments increase even more rapidly as rates continue to rise… which is exactly what’s happening now.

A few years ago, the government paid less than 1.5% on its 10-year Treasury note. Today the rate has doubled.

This has a profound impact on Uncle Sam’s cash flow: they have to borrow MORE money just to pay interest on the money they’ve already borrowed… and spend a larger and larger share of the budget on debt service.

It’s a financial death spiral.

Think about it: if the government is having this much trouble making ends meet when they’re paying 2% interest on $21 trillion in debt, what’s going to happen when they’re paying 5% on $30 trillion?

It’s foolish to think that this trend has a consequence-free outcome. No nation in history has ever become prosperous by borrowing record amounts of debt to finance reckless spending.

Source

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Tesla Bonds Extend Slide As Musk Announces “Thorough Reorganization”

While Tesla’s stock price is modestly higher this morning, seemingly glued to the $300-ish level, the car-maker’s bonds are leaking lower in price as Elon Musk told employees in a memo that he has been undertaking “a thorough reorganization of our company.

Following a two-hour pitchfest by long-time TSLA uber-bull Ron Baron on this morning’s CNBC, telling investors “we’re going to make 20-times our money on Tesla,” The Wall Street Journal reports that Tesla will undergo a restructuring to flatten its management structure.

Following a number of senior-level resignations, Musk said in the memo…

“To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company.

“As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission.

He added that the company will continue to hire workers.

So does this mean that even more of the company will report direct to Musk, while he sleeps on the shop-floor?

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Spotify Partners with the Southern Poverty Law Center to Purge ‘Hate Content’ from Its Music

Following in the steps of Facebook and YouTube, Spotify is trying to scrub its platform of controversial content. The streaming music service has released a new “hate content and hateful conduct” policy, outlining how it intends to identify and deal with music that violates the company’s core principles of “openness, diversity, tolerance and respect.”

According to the policy, any tracks or artists identified as “hate content”—defined as music that “principally promotes, advocates, or incites hatred or violence against a group or individual based on characteristics, including, race, religion, gender identity, sex, ethnicity, nationality, sexual orientation, veteran status, or disability”—will be either removed from Spotify altogether or suppressed in promotions and stripped out of any platform-generated playlists.

The “hateful conduct” part of the policy will take aim at musicians’ off-the-clock behavior. “When an artist or creator does something that is especially harmful or hateful,” the company explains, that will affect the company’s dealings with them. R. Kelly, who has been accused of sexually abusing underage girls, appears to be the first casualty of this policy: The singer’s music will still stream at Spotify but will no longer be promoted there.

Several advocacy groups will help Spotify identify “hate content.” Among them: the Southern Poverty Law Center, the Anti-Defamation League, and GLAAD.

Fighting bigotry is a fine goal, and I am sure Spotify’s intentions are pure. It also goes without saying that a private company can moderate content however it wants.

That said, the this “hate content” policy is an ambiguous mess doomed to failure. Music, including a lot of incredibly popular music, is full of hateful, racist, sexist, homophobic, and otherwise appalling messages. Attempting to sort the truly objectionable from the merely edgy or dated will only lend itself to arbitrary enforcement.

Take “Gangsta Gangsta,” from NWA’s 1988 album Straight Outta Compton. The rap has racked up an impressive 31 million streams on Spotify, dazzling listeners with lyrics like “dumb-ass hooker ain’t nothing but a dyke” and “life ain’t nothing but bitches and money”:

Or take Dire Straits’ “Money for Nothing,” which reached the top spot on the Billboard charts back in 1985 and now has been streamed some 88 million times on Spotify. This popular rock song contains such gems as “See the little faggot with the earring and the make-up/Yeah buddy, that’s his own hair/ That little faggot got his own jet airplane/That little faggot he’s a millionaire”:

Savvy listeners can certainly muster defenses of these tracks. “Money for Nothing,” for example, was based on a conversation that Dire Straits’ Mark Knopfler overheard in a store; it would be a mistake to declare the singer homophobic just because a character in his song is. But the language could still offend people. How exactly Spotify should adjudicate that is anyone’s guess.

At any rate, both songs peddle in homophobic and misogynistic slurs. Do they rise to level of “hate content,” though? One might argue that these songs aren’t “principally” promoting or inciting hate, as required by Spotify’s policy. But that again is a fuzzy line. Is misogyny the principle message of “Gangsta, Gangsta” or just an ancillary theme?

Then there are questions about songs that do explicitly promote hate and violence are going to be treated. We live in a time, after all, when some states are adding the police to the protected classes in their hate crimes laws. So consider another popular NWA track, “Fuck tha Police.” It’s undeniably hateful. And it includes explicit calls for violence against law enforcement, with lines like “Beat a police out of shape/And when I’m finished, bring the yellow tape”:

At a time when some states are adding the police to the protected classes in their hate crimes laws, you can see where this is going. Were Spotify to employ its “hate content” criteria neutrally across its entire platform, it would almost certainly have to suppress this song. Remember, the new policy bars incitement against groups marked by a potentially limitless set of characteristics, not just the ones explicitly listed.

Yet NWA’s invocation of violence was itself a reaction to police racism and violence. Hatred, anger, and violent fantasies are real, predictable, even common reactions to injustice. Part of what makes songs like “Fuck tha Police” so powerful and enduring is that they capture that hate and turn it into popular art that speaks to an audience. Will they have to go nevertheless?

Spotify’s new policy acknowledges this dilemma by saying that “cultural standards and sensitivities vary widely” and that “there will always be content that is acceptable in some circumstances, but is offensive in others, and we will always look at the entire context.”

OK, good. But that raises more questions than it answers.

What context might make violent or hateful lyrics safe for Spotify? Would they have to be a response to injustice, as with “Fuck tha Police”? A lot of people like being titillated by dark, violent, and grotesque images. This is particularly true of music, where whole genres of music exist to horrify their audiences with obscenely violent lyrics and themes. Try to apply Spotify’s standards to large swaths of rap, punk, and metal without barring them entirely will become an exercise in absurdity.

Take death metal superstars Cannibal Corpse’s song “Hammer Smashed Face” (5 million listens on Spotify):

The lyrics here include “I smash your fucking head in, until brains seep in through the cracks.” That might survive the cut, since they refer to a neutral “you” rather than a “you” whose race, gender, sexual orientation, or veteran’s status has been specifically stated. The band might run into more problems for its song “Entrails Ripped from a Virgin’s Cunt” (212,000 listens), since—as the name suggests—it includes some graphic descriptions of violence against women. But is smashing someone’s head in with a hammer less hateful than pulling her innards through her vagina? I guess Spotify will have to decide.

The company’s policy becomes even more troublesome when one considers that the Southern Poverty Law Center will help to guide and enforce it. Given that group’s history of using exceptionally broad definitions of “hate” and “hate groups,” one can be forgiven for being pessimistic about their ability to vet musical content with a light and sensitive touch. (I reached out both Spotify and the Southern Poverty Law Center to ask how this identification of hate content will work in practice but did not receive a reply.)

Inevitably, some songs will cross lines of acceptable expression. Part of musical exploration is finding where that line is for yourself. But now Spotify plans to put itself in the role of defining where that line has to be, undercutting its own value as a library for listeners to explore.

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Goldman Trading Co-Heads Quit

Now that the vol – and trading boom – of the fist quarter is ancient history, many are wondering how revenues look like for the second quarter, which tomorrow will be half-way over. According to this update from Bloomberg, it’s hardly glowing.

Goldman’s Pablo Salame and Isabelle Ealet, two of the three co-heads of the securities trading division, will leave the bank next month, Bloomberg reported citing a letter from CEO Lloyd Blankfein, who is also reportedly on his way out.

Pablo J. Salame, global co-head of the Securities Division at Goldman Sachs

 

Isabelle Ealet, global co-head of the Securities Division at Goldman Sachs

The departures mean that Ashok Varadhan will run the trading division singlehandedly, according to an internal memo Monday from Chief Executive Officer Lloyd Blankfein.

Salame, 52, led the trading business since 2008 and was named a vice chairman of the firm in 2016, meanwhile Ealet, 55, rose up through the commodities business and was named partner in 2000. Perhaps they were not enthused to watch as their once proud, FDIC-backed hedge fund has been forced to sell loans to subprime consumers using “Instragram personality” JoJo Fletcher as spokesperson for its home-improvement loans to “build excitement.”

Bloomberg adds that Salame and Ealet will become senior directors after they leave, according to the memo, although it wasn’t clear where since, after all, they are leaving the company.

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Watch: Fed’s Bullard Bashes Cryptocurrencies, Holds Q&A

In an odd convergence, a sworn protector of the fiat currency regime, St. Louis Fed president James Bullard is presenting on the topic of cryptocurrencies, or rather “Non-Uniform Currencies and Exchange Rate Chaos” at the blockchain tech conference in New York.

Bullard notes that while he is “a fan of technological innovation as a driver of economic growth, and blockchain and related technologies are promising”, he is far less enthused by the concept of cryptocurrencies, for an obvious reason: cryptocurrencies, unlike fiat, are not created by any central bank; cryptocurrencies, like fiat, are only worth whatever someone believes they are worth.

In other words, in a time when central bankers are losing credibility by the day, there is no a legitimate platform to express this loss of faith, i.e. by purchasing bitcoin and other cryptos. Which is also why central banks are doing everything in their power to suppress the rise of cryptos, just as they did the same to gold several years ago.

Predictably, Bullard’s conclusion is hardly crypto-friendly: ‘Cryptocurrencies may unwittingly be pushing in the wrong direction in trying to solve an important social problem, which is how best to facilitate market-based exchange.”

Actually, cryptocurrencies are very wittingly pushing in the direction of the biggest social problem of the past hundred years: the existence of central banks, and how to finally eliminate them.

Courtesy of the St. Louis Fed, here are some of the key slides:

The Bullard Q&A can be seen live in the feed below:

And the whole presentation can be read here (pdf link)

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Sears Shorts Crushed After Company Starts Process To Sell Assets (To Eddie Lampert)

Like clockwork, the moments a certain number of Sears shorts accumulate, a press release or a statement from Eddie Lampert unleashes a violent short squeeze, and today was just such a day.

With the short interest SHLD rising to the highest level since last October…

… Sears said a special committee started the formal process to explore the sale of various assets, including its Kenmore brand, the Sears Home Improvement Products unit as well as the Parts Direct business of the Sears Home Services division, and reported that Sears had received a proposal for these assets from ESL Investments in April.

Translated: Eddie Lampert, who is the biggest shareholder of Sears, is looking to buy the bulk of what Sears has to sell to keep the melting ice cube alive for a few more quarters. Which somehow is perfectly legal in this bizarro investing universe.

For those confused, Eddie Lampert has constructed another check-kiting scheme, whose only purpose is to bump Sears stock higher by slamming the shorts once again. And sure enough, that’s precisely what happened as Sears shares surged as much as 15% before fading some of their gains.

From the press release:

Sears Holdings Announces Initiation Of Formal Process To Explore Potential Sale Of Assets

Sears Holdings Corporation (the “Company”) (SHLD) today announced that a special committee of the board of directors (the “Board”) of the Company (the “Special Committee”) is initiating a formal process to explore the sale of its Kenmore brand and related assets, the Sears Home Improvement Products business of the Sears Home Services division and the Parts Direct business of the Sears Home Services division (collectively, the “Sale Assets”). As previously reported, the Board received a letter from ESL Investments, Inc. (“ESL”) expressing interest in participating as a purchaser of all or a portion of the Sale Assets. The Board established the Special Committee, which consists solely of independent directors, to evaluate ESL’s proposal, to actively solicit third-party interest in the Sale Assets, and to explore any other alternatives with respect to the Sale Assets that may maximize value for the Company. The Special Committee has retained Centerview Partners LLC to serve as its investment banker and Weil, Gotshal & Manges LLP to serve as its legal counsel.

All inquiries from potential third party purchasers concerning the Sale Assets should be directed to Centerview Partners LLC.

No assurances can be given that any formal detailed proposal will be made by ESL or any third party purchaser, or, if made, as to the terms and conditions of such proposal and the Sale Assets to which it relates, that any proposal made by ESL or third party purchaser regarding a proposed transaction will be recommended to the Board by the Special Committee, that definitive documentation relating to any such transaction will be executed, or that a transaction will be consummated in accordance with that documentation, if at all.

The Company does not intend to comment further with respect to the Sale Assets unless and until it determines that additional disclosure is appropriate.

As previously disclosed in our annual report, the Company is exploring ways to unlock value across a range of assets, including the Sale Assets.

But the biggest way the Company unlocks value is by launching wave after wave of short squeezes to prevent the stock of the effectively defunct company from hitting its “fair value.”

 

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WSJ: “Mueller’s Investigation Crosses the Legal Line”

The Wall Street Journal continues to counter the liberal mainstream media’s anti-Trump-ness with today’s op-ed from Steven Calabresi, who served as a special assistant to Attorney General Edwin Meese (1985-87) and a law clerk to Justice Antonin Scalia (1987-88). Calabresi proclaims that Mueller’s investigation has crossed the legal line, explaining that it’s unconstitutional under ‘Morrison vs Olson’ – the decision, not the dissent…

Via The Wall Street Journal,

Judge T.S. Ellis has expressed skepticism about the scope of special counsel Robert Mueller’s investigation. “What we don’t want in this country is… anyone with unfettered power,” Judge Ellis, who is to preside over the trial of former Trump campaign manager Paul Manafort, told prosecutor Deputy Solicitor General Michael Dreeben May 4. “So it’s unlikely you’re going to persuade me that the special prosecutor has unlimited powers.”

Judge Ellis is right to be skeptical. Mr. Mueller’s investigation has crossed a constitutional line, for reasons the U.S. Supreme Court made clear in the 1988 case Morrison v. Olson. That case is best known for Justice Antonin Scalia’s powerful lone dissent arguing that the post-Watergate independent counsel statute was unconstitutional. But Chief Justice William Rehnquist’s opinion for the court, while upholding the statute, set forth limits that the Mueller investigation has exceeded.

At issue is the Constitution’s Appointments Clause, which provides that “principal officers” must be appointed by the president with the Senate’s consent. Rehnquist wrote that independent counsel Alexia Morrison qualified as an “inferior officer,” not subject to the appointment process, because her office was “limited in jurisdiction” to “certain federal officials suspected of certain serious federal crimes.”

Mr. Mueller, in contrast, is investigating a large number of people and has already charged defendants with many different kinds of crimes, including – as in Mr. Manafort’s case – ones unrelated to any collaboration between the Trump campaign and Russia. That’s too much power for an inferior officer to have. Only a principal officer, such as a U.S. attorney, can behave the way Mr. Mueller is behaving. Mr. Mueller is much more powerful today than any of the 96 U.S. attorneys. He is behaving like a principal officer.

Rehnquist’s majority opinion has never been overturned. In Edmund v. U.S. and in Free Enterprise Fund v. Public Company Oversight Board, the justices said that an officer cannot be inferior unless he has a boss – as Mr. Mueller does in Deputy Attorney General Rod Rosenstein, who appointed him. But that’s not a sufficient condition. As a principal officer, Mr. Rosenstein could legally have brought all the indictments Mr. Mueller has. But he may not delegate that authority to Mr. Mueller, any more than President Trump could delegate his veto power to Mr. Rosenstein.

The Framers struggled long and hard over the Appointments Clause. For better or worse, they arrived at the process of presidential nomination with senatorial consent. The Justice Department’s Office of Legal Counsel should confirm the analysis set forth above in a legal opinion to guide Mr. Rosenstein in the exercise of his duties. Judge Ellis should dismiss the indictment against Mr. Manafort on Appointments Clause grounds. All other defendants Mr. Mueller charges, and witnesses he subpoenas, should challenge the constitutionality of his actions on Appointments Clause grounds.

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ICE Investigates Twitter Joke About Cultural Appropriation: Reason Roundup

Watch what you tweet. When it comes to taking a joke, the feds make progressive college-kids look like George Carlin. Two recent stories highlight how aggressively Immigration and Customs Enforcement (ICE) and the FBI are policing speech on social media, seeing “threats” and “terrorism” in statements clearly not intended as such. (Sound familiar, woodchipper fans?) In the first, ICE opened an investigation into Brooklyn comedian Jake Flores because of his Twitter jokes about Cinco de Mayo, cultural appropriation, and ICE agents.

On May 5, Flores started by questioning chattering-class priorities. “It would be cool if we talked about cultural appropriation after we ABOLISH ICE,” Flores tweeted. “One of these things is a problem that we can actually solve that people are frankly not doing much about, and one of these is an unsolvable symptom of culture that we’ve built an industry around endlessly analyzing fueled by scolding, guilt, and clicks.”

These tweets were followed up by Flores laying out a modest proposal for how Cinco de Mayo should work:

White people are allowed to culturally appropriate on the condition that you help to destroy ICE. You kill 1 ICE agent and you get to wear a sombrero. 2 kills and you can wear a pancho.

3rd kill you can draw a mustache on your face in sharpie. 5 kills and you can do skull paint. It goes on and on like this up to 100…

After you kill 100 ICE agents you area allowed to be full on racist and no one can give you sh-t about it. Drive a lowrider, call people wetbacks, get a weird tattoo of a chola that’s also a clown for some reason. No one can stop you. You earned it.

The next day, Homeland Security allegedly showed up at Flores’ apartment door.

ICE Press Secretary Jennifer Elzea has at least confirmed that the agency opened an investigation into Flores after reading his tweets (no word from Elzea on the alleged apartment visit). “The kind of language expressed…even in an allegedly joking manner, is reckless and irresponsible,” she tells Splinter News. “It potentially puts at risk those who have taken an oath to uphold the law and protect public safety.”

Meanwhile, The Guardian offers up an all-too-similar story. Rakem Balogun of Texas fell under FBI surveillance for making Facebook posts that didn’t sit right with the bureau. In December of last year, agents raided Balogun’s house and arrested him; they kept him in jail for five months (with no bail allowed). But the “case [against Balogun] fell apart,” notes New York:

Eventually, the Feds resigned themselves to busting the man for illegally owning a firearm; a judge found that charge to be bogus. He was freed; but while the government had kept him locked up for the crime of expressing an affection for guns—and opinions the deep state didn’t like—he lost his car, job, home, and the opportunity to witness the first year of his newborn’s life.

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Polarization in “Real America” pales in comparison to tribalism among elites. “In our current culture, it’s precisely the elites who seem to be driving tribal identity and thought,” writes Andrew Sullivan in his latest New York magazine column. Sullivan points to a new book from Lilliana Mason detailing how “the more highly educated also tend to be more strongly identified among political lines.”

“Our elite debate,” suggests Sullivan, “has become far less focused on individual issues as such, and the complicated variety of positions, left, right and center, any thinking individual can take. It has become rather an elaborate and sophisticated version of ‘Which side are you on?'”

It’s a bad breeding ground for libertarianism. In such a “deeply tribal” atmosphere, writes Sullivan, “the individual is always subordinate to the group” and “the ‘I’ is allowed only when licensed by the ‘we.'” Read the whole thing here.

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Make China Great Again?

QUICK HITS

  • Israeli troops killed at least 37 Palestinian civilians and wounded several dozen others who were peacefully protesting near the Gaza border Monday. Along with general occupation complaints, the Palestinian protesters were upset over today’s U.S. Embassy opening in Jerusalem.
  • A white police officer at a Wisconsin mall was caught on camera punching a black teenager in the face. His department said the video shows “only a small segment of the interaction between the suspect and the officer,” who was called by mall security about the teen and four others causing a “disturbance.”
  • Kansas cops can no longer have sex with people in their custody and claim it’s consensual.
  • Seattle leaders are scheduled to consider a controversial “jobs tax” today. (Read J.D. Tuccille for more on this nonsensical proposal.)
  • Financial institutions “are increasingly wary” of doing business with recreational marijuana shops, “so it’s especially important for Congress to…pass a federal solution that will allow banks to handle funds from what is now largely a cash business,” says the Boston Globe editorial board.
  • In New York City, “black people were arrested on low-level marijuana charges at eight times the rate of white, non-Hispanic people over the past three years,” according to a New York Times analysis. “Hispanic people were arrested at five times the rate of white people.”
  • The average gasoline price in America are expected to soon reach $3 per gallon again.
  • How Trump may have “dealt religious freedom a blow with his new White House Faith and Opportunity Initiative.”
  • “My colleague Mike Allen, who has spent nearly 20 years covering the White House, says we learn more about what’s going on inside the Trump White House in a week than we did in a year of the George W. Bush presidency,” writes Jonathan Swan. It prompted him to start asking White House leakers why they do what they do—and how they ensure they don’t get caught. One leaker told Swan, “To cover my tracks, I usually pay attention to other staffers’ idioms and use that in my background quotes.”

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