Tag: news

After setting the stage for a new millionaire tax, and hiking gasoline taxes by 22.5%, New Jersey – which has emerged as the most hated state in the US – which is home to both the incorrectly named “New York” Stock Exchange (the TV studio may be located in Manhattan but the actual exchange with the microwave and laser towers  is located in Mahwah) and the Nasdaq, proposed a tax on high frequency trading. Yet while both former taxes were meant to shore up the state’s depleted coffers, the purpose of the “hi-freq” tax was a mystery. That mystery was revealed earlier today when senior NJ administration officials said that revenue from a proposed tax on electronic Wall Street trading to expand his “social-justice agenda.”

NJ governor Murphy saw the potential windfall as a shot to expand what he calls his “stronger, fairer” agenda to close New Jersey’s wealth gap, according to the administration officials, who spoke on condition of anonymity because the legislation is in early stages. While to most this simply means even more backroom dealings in one the country’s most corrupt states, to Murphy this is the pursuit of nobility – Murphy prides himself in enacting free county college tuition for undocumented immigrants and expanding no-cost pre-kindergarten in needy communities. And by “free” we of course mean paid for in the form of soaring taxes from all other documented and legal residents.

Perhaps it’s only fitting that those who benefit the most from HFTs end up paying a few pennies on the dollar for every dollar they make frontrunning retail investors via their unofficial subsidiary, Robinhood (something which the regulators finally figured out today).

Additionally, Bloomberg reports that while any proceeds from levies on hundreds of millions of trades processed at data farms inside the state wouldn’t be scored for the fiscal year that starts Oct. 1, the bonanza from the first-of-its-kind state tax could ultimately become a long-term annual source of revenue for New Jersey.

Oh, and it would of course boost progressive appeal for Murphy, a Democrat and retired Goldman Sachs Group senior director, if he campaigns, as expected, for a second term next year. What is it about former Goldman execs – such as Jon Corzine – running the Garden State (right into the ground)? But we digress.

As reported previously, a bill sponsored by Democratic Assemblyman John McKeon calls for a quarter-of-a-cent tax on stocks, options, futures and swaps trading via northern New Jersey electronic data centers. McKeon, in an interview Wednesday, said the state could collect $10 billion annually from entities engaged in at least 10,000 transactions per year, which is about how many transactions HFTs make every second.

Naturally, Wall Street has revolted at the prospect of paying fractions of a cent every time it has to frontrun retail traders, and some industry executives said such a tax would raise nowhere near such projections, predicting it could undermine the functioning of markets and New Jersey’s standing as the center of U.S. financial-data processing. Servers are warehoused in Mahwah, Secaucus, Carteret and other locations.

McKeon, the Assembly sponsor from West Orange, described the quarter-of-a-cent rate as flexible — “a good placeholder, and now conversations take place.” He cast doubt on the ability of data centers to easily move from the Manhattan area, as trading speed can decay over distance.

“It’s not like they can flip a switch, and that’s one motivating factor to get them to work with us,” McKeon said. Within five years, he said, he expected that trades will be done wirelessly, a disincentive to build expensive new centers elsewhere.

In response, the NYSE has already threatened to depart the moment a tax was enacted: “We have data centers in various states and the ability to move trading outside of New Jersey in a business day,” said Hope Jarkowski, co-head of government affairs for New York Stock Exchange parent Intercontinental Exchange. Yes, Hope, but what happens when all the states in which you have data centers follow NJ in establishing a paywall for ultra fast trades which do nothing to make the market more efficient unless one counts surging flash crashes “efficiency.”

The major exchange operators previously have gone to court over proposals that they said would harm markets. NYSE, Nasdaq Inc. and Cboe Global Markets even took the extreme step of suing their main regulator, the U.S. Securities and Exchange Commission, over a transaction-fee pilot program last year. They won.

“A financial transaction tax is a recycled idea with a lousy track record — all over the world,” said the Equity Markets Association, a trade group that represents the three companies.

The move by New Jersey would “cause unintended and irreparable harm to the U.S. capital markets,” Cboe said in a separate statement. “A transaction tax is a direct cost shouldered by investors, who will also end up paying for the price of diminished liquidity and wider spreads in our markets.”

Well of course those who would be taxes by the proposal would say that, and as for diminished liquidity, go shove it: there is already zero “liquidity” in this “market”. If anything, the market parasite that is HFT should be uprooted, Reg NMS should be torn apart, and broken markets should restart from scratch, ideally while eliminated the Fed. But we digress again.

In any case, while the Assembly bill hasn’t had a hearing scheduled, and neither has an identical version, sponsored by Senate President Steve Sweeney, New Jersey’s highest-ranking state lawmaker, at a Monday news conference Murphy said the concept “is something we like a lot,” although fraught with litigation risk.

But what the HFTax will really go toward is funding some of the ultra-liberal state’s massive underfunded pensions. New Jersey, one of the most indebted U.S. states, has unfunded pension and benefits obligations of well over $200 billion. The officials said some revenue ideally would go toward shoring up the state’s finances. But they also said the trades tax would help expand educational programs and finance new initiatives to boost middle- and low-income earners.

Murphy said such tax revenue couldn’t be counted on for the coming fiscal year because litigation almost certainly would hold up collections. But if the proposal withstood legal challenges, the administration officials said, it could fund such programs as “baby bonds” — $1,000 investment accounts for infants from lower-income families, to be used for education or to buy a home or start a business.

What was left unsaid is that by the time the babies turn 18, $1,000 won’t be enough to buy a hotdog thanks to the Fed’s new Average Inflation Targeting mandate.

Submitted by Market Crumbs,

At the beginning of the coronavirus pandemic, Apple and Google announced they would work together to develop a COVID-19 Exposure Notification API. Initially, access to the contact tracing software required users to download an app from their local health authorities and opt-in to receive Exposure Notifications.

The two companies announced yesterday that the COVID-19 Exposure Notification technology will be built directly into iOS and Android. If opted-in, the technology uses Bluetooth signals to determine how closely and for how long two phones were together and warns the other if the user tests positive for the coronavirus.

The move is in large part due to a lack of adoption as health authorities have struggled to roll out their apps. The introduction of Exposure Notifications Express will eliminate the need for health authorities to develop and maintain their own app.

Only about 20 countries and regions have introduced contact tracing apps, while only six of 50 U.S. states have done so. Only half of U.S. states are even considering building their own contact tracing app.

“As the next step in our work with public health authorities on Exposure Notifications, we are making it easier and faster for them to use the Exposure Notifications System without the need for them to build and maintain an app,” Apple and Google said.

“Exposure Notifications Express provides another option for public health authorities to supplement their existing contact tracing operations with technology without compromising on the project’s core tenets of user privacy and security.”

Public health authorities can now simply submit a configuration file with their contact information and guidance, while users will be notified to opt-in once their state or region is available. Public health authorities will still be able to maintain other apps they’ve built if they choose to.

“Public health agencies are carrying an extraordinary load in managing the novel coronavirus response,” CEO of the Association of Public Health Laboratories Scott J. Becker said.

“Offering a turn-key solution such as EN Express can greatly reduce their burden and eliminate many of the up-front requirements of building an app and setting up servers.”

The software will be built into iOS 13.7, which was released yesterday, while the Android version will be available later this month on Android 6.0 or higher.

The rising price of Ford pickup trucks in the U.S. is nothing compared to what Australians now have to pay to get one of the iconic pickups in their country. Premiums on imported Ford pickup trucks can now be as much as $60,000 above the sticker price, according to a new report by Ford Authority. 

Since importing is the only option to get Ford trucks in Australia, where they are no Ford dealerships, a new Ford Super Duty or F-150 is likely to be marked up significantly, the report says. 

It points out that a 2020 Ford F-350 Lariat equipped with Ford’s 6.7L Power Stroke diesel is listed as $172,750 Australian dollars (about $127,000 USD). In the U.S., the MSRP for the same truck is about half that price.

Australian importer Maracoonda Automotive also sold a 2020 Ford F-150 Limited equipped with Ford’s 3.5L EcoBoost V6 for about $170,000 Australian dollars. It also has a Tuscany F-150 that it is seeking to sell for $209,000.

As of now, the Ford Ranger is the only model pickup that is available widely in Australia without an import premium. But for those that want a medium duty or heavy duty truck – prospective owners will have to ask if paying a nearly $60,000 Australian dollar premium is worth it. 

Meanwhile, imports from Europe could become fewer and further between, as we reported days ago that Ford was planning on slashing 10,000 jobs and closing 6 factories in Europe. 

This news came days after it was announced that Ford would be replacing its CEO on relatively short notice. Ford said last month it had tapped Jim Farley to replace a relatively still-newly appointed Jim Hackett as CEO. Hackett replaced former CEO Mark Fields and, for the most part, has failed to inspire confidence during his tenure at Ford. 

Authored by Ryan McMaken via The Mises Institute,

It’s increasingly clear to even the average American that if riots come to your neighborhood, you’re on your own. The message received is increasingly be this:

if your plan is to wait until the police show up to provide “protection,” be prepared to wait a long time.

Consequently, as violence appears to surge in America’s cities, millions of Americans have become first-time gun owners.

Government Officials Aren’t Keeping Us “Safe”

There are two trends at work which are making Americans doubt government law enforcement is reliable and effective.

• On the one hand, the public is witnessing nightly displays of looting, rioting, and general civil unrest.

• At the same time, many police officers don’t appear particularly able or willing to defend the public against looters and rioters.

Homicide rates in New York, for example, have surged among accusations of a “police slowdown.” A number of police departments (including those in Los Angeles and Atlanta) are rumored to be using strategies such as the “blue flu” in which police personnel pretend to be ill as a negotiating tactic for obtaining political favors from lawmakers. But even when police personnel are able, there are not enough of them in most cases to truly address ongoing nightly violence in many cities. And in some cases, elected officials, like in Portland and Chicago, appear uninterested in confronting rioters with much enthusiasm at all.

It easy to see how ordinary Americans could look on current events with increasing alarm. On August 29, a man was allegedly murdered by at least one protestor among the many who have been protesting, rioting, and looting in Portland for more than three months. Two weeks ago, a truck driver sustained serious injuries, also in Portland, when he was attacked by a group of “protestors” while reportedly attempting to help a woman who was being robbed. Last week in Kenosha, protestors were seen attacking a teenager who had been attempting to protect businesses from looting and vandalism. The teen reportedly opened fire in self defense.  In Washington, DC, a mob threatened restaurant patrons, and in Minneapolis, dozens of businesses have been burned and looted.

But even before the current rash of arson, looting, and violence, the police response to serious crime was never terribly impressive. For violent crimes, studies have shown police may take up to an hour to respond more than one-third of the time. (This summer, response times fo rthe NYPD are up by four minutes, compared to last year.) And if one survives an attack from violent criminals, one shouldn’t assume justice will be done. Fewer than half of violent crimes are ever “solved” in the United States.

Gun Purchases Are Growing

Meanwhile, gun purchases have surged.

According to new estimates from the National Shooting Sports Foundation, using the FBI’s National Instant Background Check System, “there were over 12 million guns bought in the first seven months of 2020—up more than 70 percent over the same time span in 2019. This number is likely to include nearly 5 million first-time gun owners so far this year.”

Moreover, as noted in an unsigned editorial at the Wall Street Journal,

The FBI’s most recent gun-sale figures are stunning. They show that in July the bureau carried out 3.6 million background checks, the third highest month on record. [T]his translates to 1.8 million gun sales for July 2020—a 122% increase over July 2019. The 12,141,032 gun sales through this July is just shy of the 13,199,172 sales for all of 2019.

Gun retailers saw a 95% increase in firearm sales and a 139% increase in ammunition sales in the first six months of this year compared with the same period in 2019.

Statistically, it remains unclear that life for the average American is much more dangerous this year than it was over the past five years. After all, in 2014, the homicide rate in America hit a 51-year low. But the American public has never been one to sit back and conclude everything is fine just because homicides are relatively low.

After all, gun purchases were already surging even before the apparent killing of George Floyd touched off a wave of protests followed by riots and looting. Gun purchases that had been fueled by general uncertainty and anxiety over the Covid-19 panic soon became gun purchases fueled by far more immediate fears of violent crime.

Also notable is that many new gun owners are outside groups known as the usual suspects, when it comes to gun purchases. The NSSF reported that 58 percent of the new firearms purchases were by black men and women, while “women comprised 40% of first-time gun buyers.”

Millions Aren’t Buying the Usual Pro-Gun-Control Claims

Needless to say, these trends are going very much against the grain of the usual narrative employed by gun control advocates; a narrative that generally employs several main tenets we’ve seen many times. They include:

• Government police agencies provide better protection than a private firearm ever could.

• If you’re in danger, it’s best to call 911 and then wait.

• If you buy a gun, the gun is more likely to kill someone you love, rather than stop a criminal.

• America would be safer if fewer people had guns.

• People who buy guns are mostly just rightwing hayseeds. Hillary Clinton calls these people “deplorables.”

And while opponents of private gun ownership rarely say this explicitly, the sum total of their narrative is this: only police and military personnel should own guns. The basic idea here is that private gun owners cannot be trusted, and that government officials will keep us safe. But as so often occurs when there are riots—as happened in both Ferguson (in 2014) and Kenosha (in 2020) police officers and other government “public safety” personnel mostly just protect government property. The private sector must just fend for itself.

Many Americans appear to have gotten the message.

India recorded the largest single-day spike (78,761) of new COVID-19 cases on Sunday since the pandemic began. The country is easing out of strict lockdowns despite an accelerating virus pandemic—a move to restart its crashed economy that saw a record plunge in second-quarter growth. But new power generation data from the government, seen by Reuters, reveals power usage in the western industrial region of the country continues to slump, a red flag that is suggestive of a faltering recovery. 

For the sixth consecutive month, India’s electricity generation continued to decline in August, driven by a drop in power usage from western industrial states such as Maharashtra and Gujarat: 

August power generation fell 0.9%, a Reuters analysis of daily load despatch data from federal grid operator POSOCO showed, slower than the 1.8% decline seen in July.

In the second half of August, electricity generation declined 4.5%, compared with a 2.6% increase during the first fifteen days of the month.

Power use during the second half of August in states such as Maharashtra and Gujarat, among the country’s largest electricity consumers, declined by about 15% each, compared to near parity compared to August 2019 during the first 15 days of the month. -Reuters 

Reuters notes India’s annual electricity demand is expected to fall for the first time in four decades. The industrial sector accounts for half the country’s electricity consumption. This is just more bad news for the world’s fifth-largest economy by GDP will remain in recession through 2020. The world economy cannot recover without India.

A flare-up in geopolitical tensions between Indian and Chinese troops along the Line of Actual Control could be what the Modi government needs to distract the world from a severely damaged Indian economy.

Authored by Patrick Buchanan via Buchanan.org,

In northeast Syria last week, a U.S. military vehicle collided with a Russian armored vehicle, injuring four American soldiers.

Both the Americans and Russians blame each other for failing to follow established rules of the road. Had an American been killed, we could have had a crisis on our hands.

Query: With the ISIS caliphate dead and buried, why are 500 U.S. troops still in Syria a year after Donald Trump said we would be pulling them out? What are they doing there to justify risking a clash with Russian troops who are in Syria as the invited allies of the Damascus regime of Bashar Assad, whether we approve of his regime or not?

Nor was this the only U.S.-Russian faceoff last week.

Over the Black Sea, two Russian military jets swept past the nose of an American B-52, one of the bombers on which the airborne leg of our strategic deterrent depends. The Russian Su-27s flew so close to the B-52 that their afterburners shook the eight-engine bomber.

What was a nuclear-capable B-52 doing over the Black Sea, which is to Russia what the Caribbean and Gulf of Mexico are to us?

That B-52 overflight of the Black Sea was part of an exercise in which six U.S. B-52s overflew all 30 NATO nations in one day — from the U.S. and Canada to Spain and the Balkans and to the eastern Baltic Sea — in a military exercise to test Russian air defenses.

At the end of August, the Russian navy conducted its own war games near Alaska, involving dozens of ships and aircraft, the largest such drill in these northern seas since Soviet times.

Russia’s navy chief, Adm. Nikolai Yevmenov, said 50 warships and 40 aircraft took part in the Bering Sea exercise, which involved multiple practice missile launches. Said the admiral:

“We are holding such massive drills there for the first time ever.”

As Trump rebuilt the U.S. military, Vladimir Putin reciprocated.

And, last week, Putin had a pointed warning for any nation that meddles in Belarus. With Alexander Lukashenko, the Belarusian autocrat facing huge and hostile demonstrations demanding he resign, Putin put out word that outside intervention to effect Lukashenko’s removal could cause Russian special forces to intervene.

The fall of Lukashenko from power, after 25 years ruling Belarus, could lead to a crisis as NATO allies Lithuania and Poland both border on the former Soviet republic of 9.5 million people.

Also in late August, on the other side of the world, China conducted a huge naval exercise in the South and East China seas and Taiwan Strait.

After an American U-2 overflew its ships during the exercise, Beijing denounced the “naked provocation” and test-fired four ballistic missiles into the South China Sea. Two of those missiles have been described as “carrier killers.” They are said to have been developed to attack aircraft carriers such as the 100,000-ton vessels that serve as the backbone of the fleets the U.S. Navy deploys in these same waters.

The U.S. has been sending its own warships into what an angry China claims are its territorial waters around the atolls and reefs it has fortified and converted into air and naval bases in the Paracel and Spratly islands.

What exactly is our ultimate goal here?

China has also been ramping up pressure on Taiwan by having military planes and warships circumnavigate the island and by sending aircraft across midpoint in the Taiwan Strait.

Taiwan recently purchased 66 US F-16s for delivery over the next 10 years. Yet, its armed forces are no match for Beijing’s. And China has put the world on notice that any move by Taiwan toward independence would cross a red line and be crushed by Beijing.

Is America prepared to fight China over fortified rocks and reefs in the South China Sea to which we have no territorial claim? Are we prepared to fight China to prevent the gradual absorption of Taiwan, which Richard Nixon conceded in 1972 we do not deny is a part of China?

In its confrontation with Iran, the U.S. seems about to suffer a setback in the Security Council. Our attempt to effect a “snapback” of U.N. sanctions on Iran, for violating the 2015 nuclear deal, seems certain to be rejected by our three principal NATO allies, as well as Russia and China.

How would Tehran’s victory in the U.N. over the U.S., which would open the door to sales and purchases of weapons by the ayatollah’s regime, be received?

Potential collisions between the U.S., Russia or China are not even back-burner issues this election year. Meanwhile, we are consumed by the coronavirus, the crashed economy, racial divisions and riots that have ripped apart cities like Portland, Seattle, Minneapolis and Kenosha since the Memorial Day death of George Floyd.

Still, Leon Trotsky had a point when he said, “You may not be interested in war, but war is interested in you.”

The feud between Trump and liberal cities which encourage protests which seeking to defund the police escalated sharply on Wednesday, when the President ordered the federal government to begin the process of defunding New York City, Portland, Seattle and Washington, cities where officials allowed “lawless” protests and cut police budgets amid rising violent crime.

In a five-page memo sent to federal agencies on Wednesday whose subject is “Reviewing Funding to State and Local Government Recipients of Federal Funds That Are Permitting Anarchy, Violence, and Destruction in American Cities” and signed by Trump, the president orders them to report to the White House Office of Management and Budget on any funding that could be redirected. New York City, Portland, Seattle and even Washington, DC are among the initial targets of the measure.

“My Administration will not allow Federal tax dollars to fund cities that allow themselves to deteriorate into lawless zones,” Trump says in the memo, which mentions New York Mayor Bill de Blasio by name twice. To ensure the federal funding is not wasted or “spent in a manner that directly violates our Government’s promise to protect life, liberty, and property, it is imperative that the Federal Government review the use of Federal funds by jurisdictions that permit anarchy, violence, and destruction in America’s cities.”

In a tweet late on Wednesday, Trump followed up the memo by saying that his administration “will do everything in its power to prevent weak mayors and lawless cities from taking Federal dollars while they let anarchists harm people, burn buildings, and ruin lives and businesses. We’re putting them on notice today.”

My Administration will do everything in its power to prevent weak mayors and lawless cities from taking Federal dollars while they let anarchists harm people, burn buildings, and ruin lives and businesses. We’re putting them on notice today. @RussVought45

— Donald J. Trump (@realDonaldTrump) September 3, 2020

In the memo, Trump writes that the city of Seattle “allowed anarchists and rioters to take over six square blocks of the city, an area the unlawful occupiers renamed the “Capitol Hill Autonomous Zone” and then the “Capitol Hill Occupied Protest.” Notwithstanding the fact that law-abiding citizens live and work in the invaded area, the local government effectively endorsed this lawlessness and taking of property by, among other things, abandoning the Seattle Police Department’s East Precinct building and forbidding the police force from intervening to restore order. Tragically, the Mayor allowed the unlawful occupation to persist until two teenagers were killed and at least two other persons suffered gunshot wounds. On July 1, Seattle declared the protest zone dismantled.” He also denounced the “failed leadership” in Seattle whose Mayor Jenny Durkan tolerated the local anarchists until protesters – led by a city council member – came to her own doorstep.

Likewise for New York, the memo said that the city has refused to prosecute rioters, rejected the offer of federal help, and cut the police budget despite an “unconscionable rise in violence.”

In New York City, officials have allowed violence to spike. In late May and early June, State and local officials allowed looting to take place for over a week, resulting in damage to an estimated 450 businesses. As of August 16, there have been 896 shootings in New York this year, compared to 492 shootings during the same period last year. The shooting victims include children as young as 1 year old. Shootings have been rising in recent weeks, and police reported 244 shootings last month compared to 88 in July 2019 — a 177 percent increase. While violence has surged, arrests have plummeted. In a 28-day period during the months of June and July, arrests were down 62 percent from the same period in 2019. Amidst the rising violence, Mayor Bill de Blasio and the New York City Council agreed to cut one billion dollars from the New York Police Department (NYPD) budget, including by cancelling the hiring of 1,163 officers.

The memo also cites NYPD Commissioner Dermot Shea’s June disbandment of plainclothes units. “Police officials have cited this decision as a factor contributing to the rise in violence,” the memo says.

In Portland, Oregon “officials have allowed violent anarchists to unlawfully riot and engage in criminal activity on the streets, including the destruction of property.”

These rioters have repeatedly tried to destroy property in the city, including the Federal courthouse. They have attacked Federal law enforcement personnel protecting the Federal courthouse with Molotov cocktails, mortar-style fireworks, hard projectiles, and lasers that can cause permanent blindness. Over several days in July, the rioters set fires in and around the Federal courthouse. To date, at least 140 Federal officers have been injured in Portland.”

Trump then goes on to slam state and local officials in Portland who “have taken insufficient steps to protect the Federal courthouse, and initially rejected offers of Federal law enforcement assistance” even after the apartment building of Portland mayor was set on fire.

The nation’s capital was not spared from Trump’s wrath: he said that “Washington, D.C., Mayor Muriel Bowser allowed rioters and anarchists to engage in violence and destruction in late May and early June, requiring me to call in the National Guard to maintain law and order in the Nation’s Capital.”

Predictably, the memo slam the performance of Democratic mayors in each city, as well as state leaders:

“As a result of these State and local government policies, persistent and outrageous acts of violence and destruction have continued unabated in many of America’s cities, such as Portland, Seattle, and New York.”

OMB Director Russell Vought, who according to the Post “applauded the review in a statement” was told to issue guidance on “restricting eligibility of or otherwise disfavoring, to the maximum extent permitted by law, anarchist jurisdictions in the receipt of Federal grants” within 30 days, while AG Bill Barr was given 14 days to put together a list of “anarchist jurisdictions” that “permitted violence and the destruction of property to persist and have refused to undertake reasonable measures” to restore order.

Vought told the NY Post that “American taxpayers who fund the great programs that our cities rely on deserve to be protected by their local city officials.” He added that the administration was “exploring all options to ensure federal resources flowing to lawless cities aren’t being squandered.”

“The lack of law and order surrounding these riots, and response from local leadership, is a dereliction of duty. Our men and women in blue cannot be handcuffed by local leadership in their efforts to respond to riots and protect their fellow citizens.”

The memo was drafted prior to last week’s incidents following the Republican National Convention, when angry mobs attacked those in attendance, including Senator Rand Paul in part because Bowser refused to allow additional security.

After months of referring to the frequent rioting and looting merely as “peaceful protests,” mainstream media outlets began blaming the riots on Trump after they themselves admitted that it makes Democrats look bad in the polls. Democrat presidential nominee Joe Biden denounced “all violence” earlier this week, but Republicans accused him of in effect threatening Americans with more violence unless they vote for him.

* * *

In response to the memo, New York Gov. Andrew Cuomo wasted no time in slamming President Donald Trump, and in a scathing statement Wednesday night, Cuomo said from the point of view of NYC, President Donald Trump is the worst president in history amid his threats to defund the city.

“Look, the best thing he did for New York City was leave,” Cuomo said. “Good riddance, let him go to Florida, be careful not to get COVID.”

Cuomo also slammed Trump’s handling of the COVID pandemic and said he is the cause of coronavirus in New York.

“It is his negligence that brought it here and his arrogance that he won’t provide state and local funding to help states and cities recover from the pandemic that his negligence caused,” Cuomo said. When was asked what would happen if the federal funding goes away, Cuomo said that NYC receives roughly $7 billion a year in federal aid for housing, medical, health and homeland security funding.

“I think it’s because he is from New York City and New York City rejected him always,” Cuomo said. He was dismissed as a clown in New York City.”

He may be a clown, but he is the clown who controls the money, and for the sake of Cuomo, Trump better not get re-elected or else New York will soon transform into hellhole it was for much of the 1970s and 1980s.

Americans will be ditching hotels and resorts, along with popular travel destinations in major US cities this upcoming Labor Day weekend, seeking refuge in secluded lake homes or mountain cabins or homes in rural communities as the virus pandemic continues to rage, reported Yahoo Finance. 

The shift in travel to rural communities has been absolutely devastating for major metropolitan areas that heavily rely on tourism. Hotel bookings are down 66% compared to this time last year, according to the American Hotel and Lodging Association. Major travel destinations from Oahu, Hawaii; Orlando, Florida; Miami, Florida; New York, New York; and San Francisco, California have seen unprecedented declines in travel and will see further drops this holiday weekend.

The virus pandemic isn’t the only reason why some folks will not vacation in metro areas. There are compounding issues such as depressionary unemployment, social unrest, and surging violent crime that has deterred people not just from traveling to but also triggered a mass exodus of city-dwellers who now are packing up their bags and moving permanently to suburbia. What’s also supercharging the exodus from cities is remote working. 

Over the last six months, despite the pandemic led to nationwide lockdowns causing mass Airbnb cancellations, triggering a collapse in rental income for hosts – the company was forced to bail out Superhosts with company funds –  there have been over 200,000 new hosts who have recently had their first bookings. Bookings, in a post-pandemic world, have surged across remote areas.  

“Meanwhile, high-density urban centers now make up approximately 20% of Labor Day trips this year, dropping from 40% over the same weekend in 2019,” Airbnb said. 

Top trending places on Airbnb this weekend include Hilton Head Island and Charleston, South Carolina; Big Bear Lake and Palm Springs, California; Scranton, Pennsylvania; and Fredericksburg, Texas.

Travel trends are quickly shifting this holiday weekend, from staying at hotels and resorts in popular metro areas to now rural communities for a handful of reasons mentioned above. This trend will persist for the remainder of the year and spillover into 2021.

Readers might be wondering what are the direct consequences of these travel shifts?

The answer could be found in our latest piece titled “Hedge Funds Start Piling Into “The Big Short 3.0,”” as we note, CMBX 9, with its outlier exposure to hotels, could be ready for further delcines. 

Authored by Thorstein Polleit via The Mises Institute,

The title of this article epitomizes what the Austrian economist Ludwig von Mises (1881–1973) called the “sound money principle.” As Mises put it:

The sound-money principle has two aspects.

1. It is affirmative in approving the market’s choice of a commonly used medium of exchange.

2. It is negative in obstructing the government’s propensity to meddle with the currency system.

And further:

It is impossible to grasp the meaning of the idea of sound money if one does not realise that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of right.

Mises tells us that sound money is an indispensable line of defense of people’s liberties against the encroachment on the part of the state and that sound money is a kind of money that is not dictated by the state but is chosen by the people in the free marketplace. The world we find ourselves in is a rather different place. Our monies – be it the US dollar, the euro, the Chinese renminbi, the yen, or the Swiss franc – represent fiat currencies, monopolized by the state.

Fiat money is economically and socially destructive – with far-reaching and seriously harmful economic and societal consequences, effects that extend beyond what most people would imagine. Fiat money is inflationary; it benefits a few at the expense of many others; it causes boom-and-bust cycles; it leads to overindebtedness; it corrupts society’s morals; and it paves the way toward the almighty, all-powerful state, toward tyranny.

Central Banking Is Marxist

It is certainly no coincidence that “the state” has been expanding ever since the world adopted an unfettered fiat money regime back in the early 1970s, and that as a result individual liberties and freedoms have been under pressure ever since. The state feeds itself on fiat money. It simply issues new debt, which is then monetized by the its central bank, which is at the heart of the fiat money regime.

Perhaps you will find it surprising that I believe that the concept of central banking is truly a Marxist concept. (I am not saying that central banking is only favored by Marxists. Not at all! There are also many other ideologies which approve of central banking.)

In their Communist Manifesto of 1848, Karl Marx (1818–83) and Friedrich Engels (1820–95) compiled a list of measures necessary to establish communism. Measure number 5 reads as follows:

Centralisation of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.

Against this backdrop there should be no doubt that once the state has become the absolute ruler of fiat money, the door is open for it to grow bigger and bigger, eventually turning into the dreaded deep state. And the deep state, as we know well from history, has little regard for individual freedoms and liberties.

Making Money Great Again: Returning to Sound Money

What needs to be done? Well, the challenge at hand is “Making Money Great Again”! This requires, first and foremost, ending the state’s money production monopoly and opening up a free market in money.  A free market in money means that people have the freedom to choose the kind of money they wish to use and that people have the freedom to provide their fellow men with alternative goods that may serve them well as money.

As things stand, however, a final solution to the “money problem” has not arrived yet—even considering the emergence of the cryptocurrency space. This is because the financial intermediation problem is still unsolved in the cryptocurrency ecosystem; we will come back to this issue in a moment.

But first let us address the question: How can we get from a state-controlled fiat money regime to a free market in money?

• The first strategy is monetary enlightenment – informing the widest possible audience about the evils of fiat money and how it affects their personal lives, families, and communities. This also includes explaining to people that there is a superior and practicable alternative to a fiat money regime, namely a free market in money.

• The second strategy is making progress in the field of alternative currencies and payment systems, especially in terms of technological disruptions and their economic profitability. This is the activity space for those among us who are propelled by entrepreneurial spirit.

The Limits of Cryptocurrency

The cryptocurrency community, the bitcoin community in particular, and also precious metals–based payment system providers have been making some headway in this area in recent years, but unfortunately victory has not yet been achieved.

For instance, bitcoin still has some scalability and performance issues. Currently, the bitcoin network settles a peak of around 350,000 transactions worldwide every day, and given its present configuration, it is presumably running at almost full capacity. By comparison, the German fiat money payment system alone processes more than 75 million transactions on average every business day. From the payment processing viewpoint, bitcoin cannot outshine fiat currencies yet.

What is more, a currency in a modern economy must provide for the possibility of financial intermediation (an issue I mentioned earlier). People typically demand payment or storage services for their money, or they want to lend and borrow money—irrespective of the kind of money they actually use. Often peer-to-peer is not enough, a third party is required.

Providing intermediation services outside existing state regulation is difficult. In fact, it would put an upper limit on the financial sophistication of any cryptocurrency. This is a heavy drag on their competitiveness compared to fiat currencies. And if a cryptocurrency comes out into the open space, it will have the state breathing down its neck, drowning it in business-destroying regulations and restrictions. Because the financial intermediation problem is still unsolved, one has reason to remain skeptical that—given the current circumstances—existing cryptocurrencies will succeed in pushing aside the state and replacing its fiat currency just like that.

Precious metals suffer from similar problems. In many countries, the state subjects gold and silver to value-added taxes and/or capital gains taxes. This makes them uncompetitive versus fiat currencies in terms of using them in daily transactions.

The Key to Free Market Money Is Deconstructing the State

In fact, is it possible that a free market in money can ever emerge as long as there is the kind of state we know today? The state is, as most of you probably know, the territorial monopolist of ultimate decision-making with the right to tax its citizens. We can rightfully expect that this kind of state will do its best to crush any competitor to its fiat money and prevent a free market in money from emerging.

So if we want a free market in money, the sobering logical conclusion is this: we need to reform, to deconstruct, the state (as we know it today).

Now the uncomfortable truth is out, because the state is possibly the fiercest adversary you could choose. How can we hope to achieve victory?

Well, there is certainly no magic spell. One possible and straightforward strategy might be appealing to people’s inner self, and that is their right to self-determination.

The right to self-determination is inalienable and it is an indisputable truth. Each and every individual is the owner of his or her body and the owner of goods acquired in nonaggressive ways (without violating the physical integrity of someone else’s property). We cannot dispute these words without causing a logical contradiction.

The right to self-determination implies that the citizens of a state have the right (1) to make it known, by a freely conducted plebiscite, that they no longer wish to be members of the state and (2) to form an independent state or to attach themselves to some other state. In other words: the right to self-determination includes the right of secession, that is, people’s right to break up the big state and to deconstruct it into smaller units.

Smaller political units are less powerful, more peaceful, and free market oriented. They keep taxation low, or may even go without it and become wealthier. Just think of, e.g., Shanghai, Hong Kong, Switzerland, Liechtenstein, or Monaco. This is because small political units must compete for capital and talents with other political units. They must behave themselves nicely. Otherwise, people and capital will leave their territory. Given a great number of small political units, there is a good chance that some of them will allow for, even encourage, a free market in money, setting an example that creates emulators.

Conclusion

It is hard to say which route would be the most effective in “Making Money Great Again.”

Perhaps the cryptocurrency community will somehow succeed in ending the state (as we know it today), leaving a truly free market in money in its place.

In the meantime, however, it certainly would not hurt if we (1) kept educating the wider audience about what good money is and what bad money is and also (2) kept unmasking the state (as we know it today), showing that it is incompatible with and a violation of the inalienable right to self-determination of each and every human being.

In any case, it is of the utmost importance to wrest the money monopoly out of the hands of the state. Otherwise, there is indeed little hope that the free society (or what little is left of it) can survive.