Saudi Arabia Sentences Journalist to Five Years in Prison for Insulting the Kingdom’s Rulers

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Over the weekend, I published a post titled Al Jazeeza Presenter to Saudi Ambassador – “Why Support Democracy in Syria but Not Saudi Arabia? in which the Saudi Ambassador claimed subjects of Saudi Arabia don’t want or need elections because they are so enamored with the absolute monarchy’s management of society. Yes, and I just had lunch with the Easter Bunny.

Here’s the clip if you missed it:

Not that you need additional evidence demonstrating the ridiculousness of his answer, but I’ll provide some anyway. Reuters reports:

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Is This Fed President An Idiot? Read These Two Headlines And Decide

As if The Federal Reserve's credibility was not already circling the drain faster than Kanye West's, San Francisco Federal Reserve President John Williams just dropped the ultimate tape-bomb of ignorance and flip-flopping…

In January, as the market begain to accelerate to the downside, a confident Fed explains why it is "not too concerned" about China's collapse: "We've built in a weakening path for China. I don't see that as a significant risk to the forecast" for the U.S. economy…China doesn't affect the US market that much at all."

While he fell one short of using the 'c' word, the implicit statement was that China risk was "contained," and would not lead to any pain in the US.

And then, less than 3 months later, Williams utters the following painfully hypocritical comments:"We have a domestic mandate…but that said, we understand that we're in a global economy so what happens in Brazil or China has a huge impact on the U.S. in terms of our inflation and employment goals."

 

We can only imagine that The Fed members have simply given up on any sense of credibility, instead desperately reaching for any excuse (around the world) not to hike rates.

So to sum up, The Fed "wasn't concerned" about China's economic collapse… until suddenly it's impact is "huge."

As a reminder, these are the unelected career economists and central planners that are entrusted – by the banks – to run the world.

h/t @VexMark


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The Hits Just Keep On Coming: Valeant CEO To Tesity Under Oath, Following Accusation Of Merger Agreement Violation

It’s been a terrible month for investors in Valeant (and Pershing Square) and it is about to get even worse following news that the outgoing CEO of the troubled company, which is under scrutiny for dramatically hiking the price of older drugs, has been summoned to testify at a U.S. congressional hearing on April 27, the panel said on Monday.

According to Reuters, the Senate Special Committee on Aging hearing comes as the Canadian-based company is coping with a variety of federal investigations into its accounting practices that led to a restatement and delays in the filing of its annual report.

Valeant said last week CEO Michael Pearson would step down, after a board committee probing the company’s ties to specialty pharmacy Philidor Rx Services had found accounting problems dating back to December 2014. Billionaire William Ackman, whose Pershing Square Capital Management owns a 9 percent stake in Valeant, has joined the company’s board.

Pearson’s testimony under oath will take places as prosecutors in Massachusetts and Manhattan are probing Valeant’s pricing and distribution channels, while the Securities and Exchange Commission is investigating its accounting and disclosure issues.

The Senate committee is one of two congressional bodies that are looking into aggressive prescription drug pricing.

Both committees are particularly focused on Valeant and Turing Pharmaceuticals, a private company founded by Martin Shkreli, a 32-year-old entrepreneur who has come under fire for raising the price of the drug Daraprim by more than 5,000 percent to $750 a pill.

In February, the U.S. House Committee on Oversight and Government Reform held a long and contentious hearing on drug pricing. At that hearing, Shkreli, who is facing unrelated securities fraud charges, asserted his Fifth Amendment right against self-incrimination.

Pearson did not testify at the hearing in the U.S. House of Representatives because he was on medical leave. Howard Schiller, Valeant’s then-interim CEO and former chief financial officer, testified in Pearson’s place. This is the same Schiller who since then has been publicly accused of “improper conduct” which helped contribute to a misstatement of its financial results.  Schiller, through his attorneys, has denied any wrongdoing.

In short, bring out the popcorn, this will be one epic spectacle, one which sooner or later culminate with one or more people in prison as Valeant revealed to be the pharma industry’s Enron we predicted months ago it would ultimate devolve into.

But wait, that’s not all.

Over the weekend, Bloomberg reported that investors in Sprout, the female libido pill maker bought by Valeant Pharmaceuticals International Inc. for $1 billion last year, said Valeant has failed to successfully commercialize the treatment by setting the price too high and neglecting to market it, putting the drugmaker at risk of violating the merger agreement.

So add corporate lawsuits to civil and criminal: the board will be very busy (assuming there is one in a few weeks). 

The group, representing all Sprout shareholders at the time of the acquisition, sent Valeant a letter on March 14 requesting materials showing that the drugmaker can fulfill its obligations under the deal going forward. Among the documents, the investors are seeking evidence that Valeant plans to spend $200 million for marketing and research and development for 2016 and half of 2017, as part of the agreement. They also ask for assurance that Valeant will keep a sales force of 150 to distribute the drug, called Addyi, which has posted disappointing sales since its introduction five months ago.

 “Valeant predatorily priced Addyi at $800 a month even though Sprout had established a price point of approximately $400 a month for the drug based on market research,” the investor group said in the letter. “As a result of this predatory pricing, insurance companies refused to cover the drug, which has led to the drug not being affordable for millions of women.”

Oh the irony: a drug which has been a speculatcular flop (and which the “investors” would have loved to see Valeant sell at $800 per month) is now said that it would sell better if only the price was cut in half.

Valeant has received the letter and will respond in due course, spokeswoman Laurie Little said in an e-mail. “While confidentiality obligations under the merger agreement prohibit us from commenting on specific contractual terms, Valeant intends to comply with all of its obligations under our agreement with the former shareholders of Sprout, including as they relate to marketing spend, number of sales reps, and post-marketing studies.”

The investor group, represented by Boies Schiller & Flexner LLP managing partner Jonathan Schiller, received cash in the acquisition, but they stand to collect royalty payments if the drug is successful. They are requesting that Valeant provide all “books, contracts, documents and records” related to the development and commercialization of Addyi by April 13, according to the letter.

“The Sprout shareholders have a contractual right to obtain the information that we have requested of Valeant,” Schiller said by e-mail.

“They also have legal remedies under the merger agreement to pursue claims against Valeant for its failure to perform its obligations.”

Sprout is one of four business lines that have performed poorly and need fixing, Pearson told senior managers this month. The struggling unit has started to cut jobs and eliminated the positions of its two national sales directors, according to people familiar with the matter, who asked not to be identified because the moves aren’t public. In addition, about 12 regional sales directors have been asked to interview for their jobs, the people said.

At the time of the merger agreement in August — within days of its approval by the U.S. Food and Drug Administration — both parties expected Addyi to hit $1 billion in net sales in the first full seven quarters following its introduction, the investors said in their letter.

Now, not so much, as suddenly Valeant’s entire rollup enterprise is under threat of imminent collapse.


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Don’t Blame It All On Donald Trump

Submitted by Tom Englehardt via TomDispatch.com,

The other week, feeling sick, I spent a day on my couch with the TV on and was reminded of an odd fact of American life. More than seven months before Election Day, you can watch the 2016 campaign for the presidency at any moment of your choosing, and that’s been true since at least late last year. There is essentially never a time when some network or news channel isn’t reporting on, discussing, debating, analyzing, speculating about, or simply drooling over some aspect of the primary campaign, of Hillary, Bernie, Ted, and above all — a million times above all — The Donald (from the violence at his rallies to the size of his hands). In case you’re young and think this is more or less the American norm, it isn’t. Or wasn’t.

Truly, there is something new under the sun. Of course, in 1994 with O.J. Simpson’s white Ford Bronco chase (95 million viewers!), the 24/7 media event arrived full blown in American life and something changed when it came to the way we focused on our world and the media focused on us. But you can be sure of one thing: never in the history of television, or any other form of media, has a single figure garnered the amount of attention — hour after hour, day after day, week after week — as Donald Trump. If he’s the O.J. Simpson of twenty-first-century American politics and his run for the presidency is the eternal white Ford Bronco chase of our moment, then we’re in a truly strange world.

Or let me put it another way: this is not an election. I know the word “election” is being used every five seconds and somewhere along the line significant numbers of Americans (particularly, this season, Republicans) continue to enter voting booths or in the case of primary caucuses, school gyms and the like, to choose among various candidates, so it’s all still election-like. But take my word for it as a 71-year-old guy who’s been watching our politics for decades: this is not an election of the kind the textbooks once taught us was so crucial to American democracy. If, however, you’re sitting there waiting for me to tell you what it is, take a breath and don’t be too disappointed. I have no idea, though it’s certainly part bread-and-circuses spectacle, part celebrity obsession, and part media money machine

Actually, before we go further, let me hedge my bets on the idea that Donald Trump is a twenty-first-century O.J. Simpson. It’s certainly a reasonable enough comparison, but I’ve begun to wonder about the usefulness of just about any comparison in our present situation. Even the most nightmarish of them — Donald Trump is Adolf Hitler, Benito Mussolini, or any past extreme demagogue of your choice — may actually prove to be covert gestures of consolation, reassurance, and comfort. Yes, what’s happening in our world is increasingly extreme and could hardly be weirder, we seem to have the urge to say, but it’s still recognizable. It’s something we’ve encountered before, something we’ve made sense of in the past and, in the process, overcome.

Round Up the Usual Suspects

But what if that’s not true?  In some ways, the most frightening, least acceptable thing to say about our American world right now — even if Donald Trump’s overwhelming presence all but begs us to say it — is that we’ve entered uncharted territory and, under the circumstances, comparisons might actually impair our ability to come to grips with our new reality.  My own suspicion: Donald Trump is only the most obvious instance of this, the example no one can miss.

In these first years of the twenty-first century, we may be witnessing a new world being born inside the hollowed-out shell of the American system.  As yet, though we live with this reality every day, we evidently just can’t bear to recognize it for what it might be.  When we survey the landscape, what we tend to focus on is that shell — the usual elections (in somewhat heightened form), the usual governmental bodies (a little tarnished) with the usual governmental powers (a little diminished or redistributed), including the usual checks and balances (a little out of whack), and the same old Constitution (much praised in its absence), and yes, we know that none of this is working particularly well, or sometimes at all, but it still feels comfortable to view what we have as a reduced, shabbier, and more dysfunctional version of the known.

Perhaps, however, it’s increasingly a version of the unknown.  We say, for instance, that Congress is “paralyzed,” and that little can be done in a country where politics has become so “polarized,” and we wait for something to shake us loose from that “paralysis,” to return us to a Washington closer to what we remember and recognize.  But maybe this is it.  Maybe even if the Republicans somehow lost control of the House of Representatives and the Senate, we would still be in a situation something like what we’re now labeling paralysis.  Maybe in our new American reality, Congress is actually some kind of glorified, well-lobbied, and well-financed version of a peanut gallery.

Of course, I don’t want to deny that much of what is “new” in our world has a long history.  The present yawning inequality gap between the 1% and ordinary Americans first began to widen in the 1970s and — as Thomas Frank explains so brilliantly in his new book, Listen, Liberal — was already a powerful and much-discussed reality in the early 1990s, when Bill Clinton ran for president.  Yes, that gap is now more like an abyss and looks ever more permanently embedded in the American system, but it has a genuine history, as for instance do 1% elections and the rise and self-organization of the “billionaire class,” even if no one, until this second, imagined that government of the billionaires, by the billionaires, and for the billionaires might devolve into government of the billionaire, by the billionaire, and for the billionaire — that is, just one of them.

Indeed, much of our shape-shifting world can be written about as a set of comparisons and in terms of historical reference points.  Inequality has a history.  The military-industrial complex and the all-volunteer military, like the warrior corporation, weren’t born yesterday; neither was our state of perpetual war, nor the national security state that now looms over Washington, nor its surveilling urge, the desire to know far too much about the private lives of Americans.  (A little bow of remembrance to FBI Director J. Edgar Hoover is in order here.)

And yet, true as all that may be, Washington increasingly seems like a new land, sporting something like a new system in the midst of our much-described polarized and paralyzed politics.  The national security state doesn’t seem faintly paralyzed or polarized to me.  Nor does the Pentagon.  On certain days when I catch the news, I can’t believe how strange and yet humdrum this uncharted new territory is.  Remind me, for instance, where in the Constitution the Founding Fathers wrote about that national security state?  And yet there it is in all its glory, all its powers, an ever more independent force in our nation’s capital.  In what way, for instance, did those men of the revolutionary era prepare the ground for the Pentagon to loose its spy drones from our distant war zones over the United States?  And yet, so it hasAnd no one even seems disturbed by the development.  The news, barely noticed or noted, was instantly absorbed into what's becoming the new normal.

Graduation Ceremonies in the Imperium

Let me mention here the almost random piece of news that recently made me wonder just what planet I was actually on.  And I know you won’t believe it, but it had absolutely nothing to do with Donald Trump.

Given the carnage of America’s wars and conflicts across the Greater Middle East and Africa, which I’ve been following closely these last years, I’m unsure why this particular moment even got to me.  Best guess?  Maybe that, of all the once-obscure places — from Afghanistan to Yemen to Libya — in which the U.S. has been fighting recently, Somalia, where this particular little slaughter took place, seems to me like the most obscure of all.  Yes, I’ve been half-attending to events there from the 1993 Blackhawk Down moment to the disastrous U.S.-backed Ethiopian invasion of 2006 to the hardly less disastrous invasion of that country by Kenyan and other African forces. Still, Somalia?

Recently, U.S. Reaper drones and manned aircraft launched a set of strikes against what the Pentagon claimed was a graduation ceremony for "low-level" foot soldiers in the Somali terror group al-Shabab.  It was proudly announced that more than 150 Somalis had died in this attack.  In a country where, in recent years, U.S. drones and special ops forces had carried out a modest number of strikes against individual al-Shabab leaders, this might be thought of as a distinct escalation of Washington’s endless low-level conflict there (with a raid involving U.S. special ops forces following soon after).

Now, let me try to put this in some personal context.  Since I was a kid, I’ve always liked globes and maps.  I have a reasonable sense of where most countries on this planet are.  Still, Somalia?  I have to stop and give that one some thought to truly locate it on a mental map of eastern Africa.  Most Americans?  Honestly, I doubt they’d have a clue.  So the other day, when this news came out, I stopped a moment to take it in.  If accurate, we killed 150 more or less nobodies (except to those who knew them) and maybe even a top leader or two in a country most Americans couldn’t locate on a map.

I mean, don’t you find that just a little odd, no matter how horrible the organization they were preparing to fight for?  150 Somalis?  Blam!

Remind me: On just what basis was this modest massacre carried out?  After all, the U.S. isn’t at war with Somalia or with al-Shabab.  Of course, Congress no longer plays any real role in decisions about American war making.  It no longer declares war on any group or country we fight.  (Paralysis!)  War is now purely a matter of executive power or, in reality, the collective power of the national security state and the White House.  The essential explanation offered for the Somali strike, for instance, is that the U.S. had a small set of advisers stationed with African Union forces in that country and it was just faintly possible that those guerrilla graduates might soon prepare to attack some of those forces (and hence U.S. military personnel).  It seems that if the U.S. puts advisers in place anywhere on the planet — and any day of any year they are now in scores of countries — that’s excuse enough to validate acts of war based on the “imminent” threat of their attack.

Or just think of it this way: a new, informal constitution is being written in these years in Washington.  No need for a convention or a new bill of rights.  It’s a constitution focused on the use of power, especially military power, and it’s being written in blood.

These days, our government (the unparalyzed one) acts regularly on the basis of that informal constitution-in-the-making, committing Somalia-like acts across significant swathes of the planet.  In these years, we’ve been marrying the latest in wonder technology, our Hellfire-missile-armed drones, to executive power and slaughtering people we don’t much like in majority Muslim countries with a certain alacrity. By now, it’s simply accepted that any commander-in-chief is also our assassin-in-chief, and that all of this is part of a wartime-that-isn’t-wartime system, spreading the principle of chaos and dissolution to whole areas of the planet, leaving failed states and terror movements in its wake.

When was it, by the way, that “the people” agreed that the president could appoint himself assassin-in-chief, muster his legal beagles to write new "law" that covered any future acts of his (including the killing of American citizens), and year after year dispatch what essentially is his own private fleet of killer drones to knock off thousands of people across the Greater Middle East and parts of Africa?  Weirdly enough, after almost 14 years of this sort of behavior, with ample evidence that such strikes don’t suppress the movements Washington loathes (and often only fan the flames of resentment and revenge that help them spread), neither the current president and his top officials, nor any of the candidates for his office have the slightest intention of ever grounding those drones.

And when exactly did the people say that, within the country’s vast standing military, which now garrisons much of the planet, a force of nearly 70,000 Special Operations personnel should be birthed, or that it should conduct covert missions globally, essentially accountable only to the president (if him)? And what I find strangest of all is that few in our world find such developments strange at all.

A Planet in Decline?

In some way, all of this could be said to work.  At the very least, it is a functioning new system-in-the-making that we have yet to truly come to grips with, just as we haven’t come to grips with a national security state that surveils the world in a way that even science fiction writers (no less totalitarian rulers) of a previous era could never have imagined, or the strange version of media overkill that we still call an election.  All of this is by now both old news and mind-bogglingly new.

Do I understand it? Not for a second.

This is not war as we knew it, nor government as we once understood it, nor are these elections as we once imagined them, nor is this democracy as it used to be conceived of, nor is this journalism of a kind ever taught in a journalism school. This is the definition of uncharted territory. It’s a genuine American terra incognita and yet in some fashion that unknown landscape is already part of our sense of ourselves and our world. In this “election” season, many remain shocked that a leading candidate for the presidency is a demagogue with a visible authoritarian side and what looks like an autocratic bent. All such labels are pinned on Donald Trump, but the new American system that’s been emerging from its chrysalis in these years already has just those tendencies. So don’t blame it all on Donald Trump. He should be far less of a shock to this country than he continues to be.  After all, a Trumpian world-in-formation has paved the way for him.

Who knows?  Perhaps what we’re watching is the new iteration of a very old story: a twenty-first-century version of an ancient tale of a great imperial power, perhaps the greatest ever — the “lone superpower” — sinking into decline.  It’s a tale humanity has experienced often enough in the course of our long history.  But lest you think once again that there’s nothing new under the sun, the context for all of this, for everything now happening in our world, is so new as to be quite literally outside of thousands of years of human experience.  As the latest heat records indicate, we are, for the first time, on a planet in decline.  And if that isn’t uncharted territory, what is?


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WTF Chart Of The Day: Without “Pajama Traders”, Stocks Have Gone Nowhere In 11 Years

There appears to be two sure-fire ways to make money in these 'efficient' markets – Buy before The Fed speaks

 

 

or trade 'em after midnight…

Source: @NanexLLC

To be clear, this means without the gains achieved between midnight ET and 3amET, the S&P 500 futures market since 2005 would have gone nowhere!  – It seems the so-called "pajama traders" may be on to something after all?

Or is this The BoJ helping out the world with direct buying as its quid pro quo for the G-20 turning their head as the most-indebted nation in the world devalues its currency.


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Heaven Help California’s Non-Urban Cities Under a $15 Minimum Wage

ProtestIf anybody is wondering why so many California residents outside of the big cities want to break away and make their own states, just take note of the news today that California legislators have made a deal with the all-powerful unions to jack up the minimum wage for all industries and all employers across the state to $15 by 2022 and then tie future increases to inflation. Small business in California will have until 2023 to comply.

There are 13 counties in California that still have double-digit unemployment figures, according to the state’s own data. The data isn’t seasonally adjusted, so keep in mind that unemployment naturally rises at the start of a new year. But even taking into account an adjustment there are significant populations in the state struggling to find work. None of these high unemployment counties are connected to the big cities. They’re inland poor counties like Merced (12.6 percent unemployment), Tulare (12.1 percent unemployment), and Imperial (18.6 percent). They have smaller populations and very little influence in government or the outcomes of ballot initiative votes. It is doubtful that anybody is even thinking about what will happen to those communities or that they even care if the outcome is terrible.

The Los Angeles Times got the scoop on the deal, which may be formally announced by Gov. Jerry Brown today. The deal is intended to hold off a labor-backed ballot initiative that has gotten enough signatures for a public vote. The final minimum wage would be the same under the ballot initiative (read it here) but would provide a shorter window for businesses to comply.

It’s also very clear that these $15 pushes are being rushed before the consequences can be fully known post-implementation. But the economics are fairly clear, the Times notes today:

Last year, L.A. County commissioned a survey of 1,000 businesses around the county as part of a larger report on a minimum wage boost.

The economists concluded that as a result of the wage increase, “many prices will increase, including those that lower-income households commonly face; wages will rise for those in minimum wage jobs that remain employed; employment opportunities for those at the bottom of the skills ladder will be diminished” and “employment growth will slow.”

A majority of businesses surveyed — and 96% of those have minimum wage employees — said they would likely raise their prices to make up for the increased labor costs.

Only 6% of the businesses overall said it was likely they would reduce the number of minimum-wage workers they employ as a result of the increased wage, but 19% of businesses with minimum wage workers said it was likely they would.

Keep in mind, that 19 percent is just for Los Angeles County, which has a much higher per capita income than other counties with smaller populations. The average Los Angeles County resident makes more than $10,000 more per year than a resident of Imperial County, for example.

But even when considering Los Angeles, it’s tough to measure what isn’t even there. The elimination of low-level jobs actually drives up the median wage and unemployment figures don’t account very well for people abandoning the work force. Noam Scheiber took note last summer in The New York Times of the challenges of trying to estimate whether communities would be able to handle such a massive increase in the minimum wage. It’s clear that the politicos responsible for this deal are not thinking beyond their own borders. A statewide massive increase in the minimum wage would be horrible for many communities, even if large cities like Los Angeles and San Francisco could absorb the consequences. After looking at the list of cities that had recently passed hikes he notes:

Still, as a general rule, this list is filled with prosperous cities — places it might make sense to single out with high-impact minimum-wage increases. It’s their affluence that fuels the demand for low-wage jobs, exacerbating inequality.

“The demand is essentially either driven by higher-income consumers in that area, or by tourism,” [Economics Professor Arindrajit] Dube said. These are the very people, he added, who can afford to subsidize a higher minimum wage by paying more at restaurants and clothing stores.

Those are not going to be the same people you find in the farmlands of Imperial County.

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The Fourth Branch of Government is Out of Control: New at Reason

There’s a fourth branch of American government and it’s out of control.

A. Barton Hinkle explains:

America has witnessed a massive shift in government authority, says George Washington University law professor Jonathan Turley—one that “has occurred without a national debate and certainly not a national vote.” That shift has led to the de facto creation of a “fourth branch of government containing legislative, executive and judicial components but relatively little direct public influence.”

Turley made those remarks in recent testimony before a House Judiciary subcommittee. His talk waded deeply into the weeds of legal history and precedent, but the upshot was this: By failing to rein in regulatory agencies when they overstep their bounds, the Supreme Court and Congress have allowed those agencies not merely to administer law, but to create it—and run roughshod over the public in the process.

It’s hard to argue with the numbers: In one recent year alone, Congress passed 138 laws—while federal agencies finalized 2,926 rules. Federal judges conduct about 95,000 trials a year, but federal agencies conduct nearly 1 million. Put all that together and you have a situation in which one branch of government, the executive, is arrogating to itself the powers of the other two.

View this article.

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Stocks Breaking Down, Corporate Profits Imploding, and the US in Recession

This rally looks complete.

The S&P 500 has broken the rising wedge pattern that has sustained it throughout the bounce from the February lows.

This is hitting as new evidence suggests corporate profits are collapsing at a pace not seen since the 2008 meltdown.

This type of collapse does not occur outside of recessionary periods.

The US data has yet to show a recession hitting because:

1)   Most of the initial data points are too high and will be revised down in the near future.

2)   Recessions are usually announced when they’re already close to over for political purposes.

Regarding #1, consider the collapse in the Fed’s GDPNow measure. That initial great reading for 1Q16 of 1.4% is now showing a growth pace of only 0.6%.

 

This will likely be revised even lower in the coming months.

Regarding #2, recessions are usually announced towards their end. The reason? The aforementioned revisions and because there is considerable political pressure to portray the economy in the best light possible.

Consider the 2007-2008 meltdown. The recession was only announced in December 2008 once the entire economy was completely imploding.

The National Bureau of Economic Research said Monday that the U.S. has been in a recession since December 2007, making official what most Americans have already believed about the state of the economy…

Source: CNN MONEY (December 1, 2008)

What does this mean?

Stocks are a mere 4% off their all-time highs at a point in which corporate profits are collapsing at a 2008-pace. The economy is very likely already in a recession, though it won’t be announced until next year at the earliest.

Buckle up, a crisis is coming.

If you’ve yet to prepare for a bear market in stocks we just published a 21-page investment report titled Stock Market Crash Survival Guide.

In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.

We are giving away just 100 copies for FREE to the public.

To pick up yours, swing by:

http://ift.tt/1HW1LSz

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 


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Why the Merrick Garland Nomination Is a Disappointment to Progressives

President Barack Obama said he selected Judge Merrick Garland to replace the late Justice Antonin Scalia on the U.S. Supreme Court because of Garland’s sterling credentials. “I’ve selected a nominee who is widely recognized not only as one of America’s sharpest legal minds,” Obama announced, “but someone who brings to his work a spirit of decency, modesty, integrity, even-handedness, and excellence.”

Unfortunately for Obama, not all of his liberal allies seem to see it that way. “Judge Garland’s background does not suggest he will be a progressive champion,” protested Murshed Zaheed, political director of the liberal activist group CREDO. Left-wing pundit Mark Joseph Stern offered a similarly disapproving view. “President Barack Obama’s nomination of Merrick Garland to the Supreme Court is extremely disappointing,” Stern griped at Slate. Even Terry O’Neill, president of the National Organization for Women and normally a staunch friend to the Obama administration, took a shot at the president’s pick. “It’s unfortunate that President Obama felt it was necessary to appoint a nominee to the Supreme Court whose record on issues pertaining to women’s rights is more or less a blank slate,” O’Neill complained.

Why are so many progressives voicing complaints about the Merrick Garland nomination? One plausible explanation comes courtesy of liberal legal scholar Jeffrey Rosen, a contributing editor for The Atlantic and the president of the National Constitution Center. In Rosen’s view, the Garland nomination counts as a “victory for judicial restraint.” That victory is precisely why lots of progressives are unhappy. Here’s Rosen:

Garland clerked for two legendary judges—Henry Friendly and William Brennan. But he has embraced the deferential jurisprudence of Friendly, rather than the activist jurisprudence of Brennan. (Chief Justice John Roberts, who also clerked for Friendly, said admiringly, “Any time Judge Garland disagrees, you know you’re in a difficult area.”) As Damon Root, the libertarian writer accurately concluded, “While Garland is undoubtedly a legal liberal, his record reflects a version of legal liberalism that tends to line up in favor of broad judicial deference to law enforcement and wartime executive power.” That’s why Garland’s nomination may discomfit libertarians and progressives who want to use the courts to impose contested visions of social change on a divided nation. But, in any rational world, it should lead traditional conservative and liberal defenders of a limited judicial role to dance in the streets.

The idea behind judicial deference is that unelected judges should be extremely wary about overturning laws enacted by the democratically accountable branches of government. As Rosen suggests, modern progressives do sometimes favor this minimal approach to judging. In 2012, for example, as the Supreme Court was weighing the constitutional merits of the Patient Protection and Affordable Care Act, President Obama lectured the Court on why it had no business taking the “unprecedented extraordinary step of overturning a law that was passed by a strong majority of Congress.” Chief Justice John Roberts ultimately came to the same conclusion, voting to uphold Obamacare on the deferential grounds that, “it is not our job to protect the people from the consequences of their political choices.”

Most progressives probably thought that sort of judicial deference sounded exactly right. Yet just one year later, those same progressives probably thought differently when the Supreme Court weighed the constitutional merits of another law “passed by a strong majority of Congress,” the Defense of Marriage Act. In that case, United States v. Windsor, the Court adopted a wholly different approach to judging, gave no deference to Congress, and struck down a central provision of a democratically enacted federal statute. Not exactly “a limited judicial role” for SCOTUS.

Which brings us back to the Merrick Garland nomination. If Garland really is a true believer in judicial deference, that means Garland thinks judges should consistently tip the scales in favor of lawmakers, including in cases in which lawmakers have passed legislation that progressive activists don’t like (such as regulations that govern abortion providers).

In other words, the Garland nomination ended up delivering a surprising and unwelcome message to Obama’s progressive supporters, Namely, progressives can’t have it both ways and still claim to favor any sort of coherent judicial philosophy. No wonder they’re upset.

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Fox News: ‘2016 the best chance yet for a libertarian candidate?’

Great moments in cable television. ||| Fox NewsAt the end of last week I participated in a Red Eye w/ Tom Shillue episode on Fox News that included a discussion about the prospects of presidential aspirant Gary Johnson and the Libertarian Party in this year’s election. Move past the MacGuffin of Johnson’s toes (sorry, GarJo!), and focus instead not just on your narrator’s assertion that “eight months of Hillary versus Trump” is going to be “awful” and “make us feel bad to wake up every morning as Americans,” but rather on the robust support for libertarianism on the panel. Actor Matt Walton claims that “a lot of Americans identify with libertarian policies,” and thinks that the LP could stand a fighting chance within a couple of election cycles. And Joanne Nosuchinsky says “I do think that a lot of people are libertarians without realizing it.”

Watch part of the segment below:

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