Solicitor General: “At least five Justices explicitly rejected the balancing test” that considers the “benefits and burdens” under Whole Woman’s Health

Today, the Solicitor General filed an application for a stay in FDA v. American College of Obstetricians and Gynecologists. In this case, the U.S. District Court for the District of Maryland issued a nationwide injunction, blocking the FDA from enforcing “longstanding safety requirements for dispensing of Mifeprex, a drug indicated for termination of pregnancy during the first ten weeks.” That court held that these regulations, in light of the CVOID-19 pandemic, “pose an undue burden on abortion access” under Casey. The Fourth Circuit denied a stay.

The application provides what I think is the Solicitor General’s first interpretation of Whole Woman’s Health following June Medical. The SG argues that the District Court was “mistaken” in its consideration of the “benefits and burdens of the safety requirements” under WWH.

Respondents’ failure to show that the challenged requirements pose a substantial obstacle should end the judicial inquiry. Yet the district court alternatively concluded that even if respondents had not established a substantial obstacle, it could balance the benefits and burdens of the safety requirements under this Court’s decision in Whole Woman’s Health. App., infra, 62a. That was mistaken. In June Medical Services L. L. C. v. Russo, 140 S. Ct. 2103 (2020), every Justice of this Court stressed the importance of demonstrating that a law poses a substantial obstacle to abortion access in order to obtain relief. See id. at 2112, 2120, 2130 (plurality opinion); id. at 2135-2139 (Roberts, C.J., concurring in the judgment); id. at 2153-2154 (Alito, J., dissenting). And at least five Justices explicitly rejected the balancing test that the district court here adopted. See id. at 2135-2139 (Roberts, C.J., concurring in the judgment); id. at 2153- 2154 (Alito, J., dissenting); id. at 2182 (Kavanaugh, J., dissenting).

The SG expressly adopts the Chief Justices’s reading of WWH–the discussion of “benefits” was dicta:

The district court nevertheless held that it could weigh the safety requirements’ benefits and burdens based on its conclusion that June Medical did not “overrule[]” “Whole Woman’s Health and its balancing test.” App., infra, 37a. But Whole Woman’s Health contains no holding adopting such a test. As the Chief Justice explained, “the discussion of benefits in Whole Woman’s Health was not necessary to its holding,” and that decision “explicitly stated that it was applying ‘the standard, as described in Casey.’ ” June Medical, 140 S. Ct. at 2139 & n.3 (concurring in the judgment) (quoting Whole Woman’s Health, 136 S. Ct. at 2309). The standard described in Casey, as the Chief Justice further observed, ” ‘squarely foreclosed’ ” any argument that a law not posing a substantial obstacle is “invalid” merely because it lacks ” ‘any health basis.’ ” Id. at 2138 (quoting Mazurek v. Armstrong, 520 U.S. 968, 973 (1997) (per curiam)).

The SG reads June Medical the same way that Judge Willett and the Eighth Circuit did read it.

Accordingly, June Medical confirms that the undue-burden standard adopted in Casey continues to “requir[e] a substantial obstacle before striking down an abortion regulation.” Id. at 2139; see also Hopkins v. Jegley, No. 17-2879, 2020 WL 4557687, at *2 (8th Cir. Aug. 7, 2020) (per curiam) (vacating preliminary injunction of abortion regulations in light of June Medical because the district court had applied a “cost-benefit standard”).3

But the SG punts on the Marks rule issue.

FN3: 3 The district court also concluded that the Chief Justice’s opinion in June Medical rejecting the court’s reading of Whole Woman’s Health is not the narrowest one under Marks v. United States, 430 U.S. 188 (1977), and therefore is not controlling. But that is beside the point here, because the four dissenting Justices in June Medical agreed with the Chief Justice on the substantial-obstacle requirement, 140 S. Ct. at 2154 (Alito, J.), and thus the district court’s contrary view is likely to be reversed by this Court if affirmed by the Fourth Circuit.

I had expected Texas’s petition for rehearing en banc to tee up the first major challenge to WWH. But the Court may resolve this question on the shadow docket. Indeed, the SG relies on the Chief’s opinions’ in June Medical and South Bay:

That sort of judicial management of public-health policy is inappropriate. The “Constitution principally entrusts ‘the safety and the health of the people’ ” to officials who must ” ‘act in areas fraught with medical and scientific uncertainties,’ ” and who generally “should not be subject to second-guessing by an ‘unelected federal judiciary,’ which lacks the background, competence, and expertise to assess public health.” South Bay United Pentecostal Church v. Newsom, 140 S. Ct. 1613, 1613-1614 (2020) (Roberts, C.J., concurring in denial of application for injunctive relief) (brackets and citations omitted). And that is especially true when the second-guessing amounts to a conclusion that a “woman’s liberty interest” outweighs “the State’s interests” in protecting her “health”—a comparison of “imponderable values” that is not “a job for the courts.” June Medical, 140 S. Ct. at 2136 (Roberts, C.J., concurring in the judgment).

Stay tuned.

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CDC Issues New Guidelines That Discourage COVID-19 Diagnostic Testing

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“With smaller testing we would show fewer cases!,” tweeted President Trump back on June 23 with regard to diagnostic COVID-19 tests. “Instead of 25 million tests, let’s say we did 10 million tests. We’d look like we were doing much better because we’d have far fewer cases. You understand that,” Trump said on CBN News. The president told the participants at his Tulsa campaign rally in June, “I said to my people, ‘Slow the testing down, please!'” White House press secretary Kayleigh McEnany later told reporters, “It was a comment that he made in jest.” Trump almost immediately contradicted McEnany, telling a reporter, “I don’t kid, let me just tell you, let me make it clear.”

And it turns out that the president really wasn’t kidding. The New York Times is reporting that the Centers for Disease Control and Prevention (CDC) was pressured by officials in the White House to change its testing recommendations.

U.S. Public Health Service Admiral Brett Giroir, a physician, denies being pressured. “Let me tell you right up front that the new guidelines are a C.D.C. action,” said Dr. Giroir. “As always, guidelines received appropriate attention, consultation and input from task force experts—and I mean the medical and scientific experts—including C.D.C. director Redfield and myself.”

The CDC’s new guidelines issued on Monday do in fact discourage Americans from getting tested for COVID-19 infections. Before changes were made Monday, the CDC website said testing was recommended “for all close contacts of persons with SARS-CoV-2 infection.” The revised guideline reads:

If you have been in close contact (within 6 feet) of a person with a COVID-19 infection for at least 15 minutes but do not have symptoms: You do not necessarily need a test unless you are a vulnerable individual or your health care provider or State or local public health officials recommend you take one.

One problem is that if you wait to get tested until after symptoms appear after being exposed to an infected person, you can become an unwitting presymptomatic spreader of the virus. For example, one recent study found that nearly 50 percent of infections were transmitted while folks were presymptomatic. It is also possible that asymptomatic people who could be identified via a more robust testing regime may also be inadvertently infecting other people. In fact, the CDC’s own current best estimate scenario assumes that asymptomatic people are 75 percent as infectious as those who have symptoms.

Instead of discouraging people from seeking COVID-19 tests, the U.S. should be massively ramping up testing as part of a comprehensive effort to control the pandemic and enable the safe reopening of the economy.

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Daily Briefing – August 26, 2020

Daily Briefing – August 26, 2020


Tyler Durden

Wed, 08/26/2020 – 18:25

Senior editor, Ash Bennington, joins managing editor, Ed Harrison, to discuss risk assets, credit markets, and the fiscal cliff. Within an environment of secular stagnation, they talk about the cross-asset play between bonds and equities as well as how overall credit tightening in the financials sector and the velocity of M2 money plummeting will have pernicious effects on growth. They also consider the dichotomy of monetary and fiscal policy and why the Fed will have to continue throwing all their chips in should fiscal authorities continue to be hawkish. In the intro, Nick Correa gives an overview of the tightening of credit markets.

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Marxism Is Coming At Breathtaking Speed – Do This Before It’s Too Late

Marxism Is Coming At Breathtaking Speed – Do This Before It’s Too Late

Tyler Durden

Wed, 08/26/2020 – 18:25

Via InternationalMan.com,

International Man: So-called “Woke” culture and political correctness have spread like wildfire across the West.

What do you think are the ramifications of this?

Chris MacIntosh: The “woke culture” is simply Marxism writ large.

It’s been with us for at least two generations, educating our children in the West with neo-Marxist ideologies. They’ve simply become more and more egregious. It started with gender studies and feminism studies.

We’re at the point now where we’re having debates around whether two plus two should equal four—because it’s a white supremacist ideal.

It’s the notion that science, technology, engineering, and mathematics, also known as STEM, is a white, male patriarchal construct that should be abolished.

I don’t know about you, but when I drive across a bridge or walk into a building, I’d like to know that mathematics and science have played a part in constructing that.

I don’t want to drive across a bridge built by somebody who won’t acknowledge that two plus two equals four.

So, what are the ramifications? Where do I start?

I had a conversation many years ago, which only came back into my consciousness three or four years ago. I was still about 20 years old at the time. I met a gentleman who said something about how to figure out where our country is going.

He was an asset manager who I just bumped into while doing a hike up Table Mountain.

He said, “If you watch what’s taking place in the universities, if there’s a very strong zeitgeist in one way or the other, watch that. Whatever that zeitgeist is, you’re going to find that, within five to ten years, in the country.”

The reason is that the leaders of the country—the CEOs, the people in management, in politics, in the courts, all come from those universities. If you look at what has been transpiring in the West over the last decade at least, in the universities—it is frightening.

It’s not a surprise now that we find these people are in positions of power. They’re instituting their vision of how the world should work. Their ideology—their zeitgeist—is Marxism. So, this woke culture is just Marxism.

Unfortunately, it is now in the DNA of the West.

As much as I want to believe that we could eliminate that, it starts with the universities and being able to educate a whole new class of people correctly.

When I say correctly, I mean, principles that adhere to civil liberties and the like.

These people don’t believe that at all. So, we’re seeing it now coming into the political landscape and the legal landscape. It’s not good.

The ramifications are that the West is committing suicide.

International Man: What does this cultural shift mean for anyone with savings and wealth?

Chris MacIntosh: If you realize that the Bolsheviks are coming – which they are – realize that they will come after anybody with any wealth.

Because there is this desire to create an equal society, what they call equity, which is really just is a redistribution of wealth. There’s one thing, having the ability to see what sectors can benefit and investing in them. But it would be a tragedy to do that only to find that the Bolsheviks come and take it away from you.

That’s another whole different topic. How any person deals with that is particular to their own set of circumstances.

The first step is to realize that they will come for your savings and your wealth.

Firstly, the savings will be taken away via an inflationary impact. That’s fine; you can protect yourself against that. But certainly, they’re going to come after anybody that is deemed to not be with the revolution.

“We’re all in this together.”

Remember?

That’s what we’re seeing now with COVID, how we’re all in this together. Well, the hell we are.

Let’s look at it like this.

How many lockdowns would we have globally if every politician that instituted those lockdowns simultaneously lost all of their income?

This is essentially what they’ve forced many millions of people globally to do. They’ve forced them to lose their income.

But politicians don’t lose their income. They still earn their big fat salaries, their perks, and their travel allowances.

Yet they stand there saying, “We’re all in this together.” We’ve seen this playbook before. It is now coming down the train tracks at breathtaking speed. And you needed to prepare yesterday.

*  *  *

Disturbing economic, political, and social trends are already in motion and now accelerating at breathtaking speed. Most troubling of all, they cannot be stopped. The risks that lie ahead are too big and dangerous to ignore. That’s why contrarian money manager Chris Macintosh just released the most critical report on these trends, What Happens Next. This free special report explains precisely what’s coming down the pike and what it means for your wealth and well-being. Click here to access it now.

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New York’s MTA Is Losing An Astounding $200 Million Per Week

New York’s MTA Is Losing An Astounding $200 Million Per Week

Tyler Durden

Wed, 08/26/2020 – 18:05

New York’s MTA is losing an astonishing $200 million per week as a result of the drop in ridership associated with the coronavirus pandemic. As a result, the organization is doing what all underprepared organizations are doing when forced upon hard times: begging the government for more help. 

The MTA is currently in “survival mode” according to a new report by Bloomberg that highlights that the agency is seeking $12 billion worth of federal funds to help cover its budget deficits through 2021. 

Pat Foye, the MTA’s chief executive officer, said earlier this week: “Our sole focus now is on survival, how to reduce costs, maintain service and minimize reductions in force while protecting the capital program.”

The organization’s Board has convened an emergency meeting in August to discuss its finances. It faces a $16 billion deficit through 2024 and has told the government that, without help, it will need to boost fares, freeze wages, reduce service and stop major capital projects – you know, all the things a business should do when its customers start to wane. 

But apparently these types of business adjustments are no longer acceptable, as the organization believes it should be able to press on as normal, including with its expansion of the Second Avenue subway and its direct access projects from Penn Station to Connecticut, despite not having any customers. 

Subway ridership is down 75% from pre-pandemic levels; the Metro-North railroad has seen a drop of 83% and the LIRR has dropped 76% from pre-pandemic levels. 

The MTA already secured $451 million last week from a new $500 billion lending program put in place by the Federal Reserve. At 1.92%, the rate was lower than what Wall Street offered the MTA, equating to about $12 million savings over the course of the 3 year loan. 

And while this cash helps the MTA in the short term, its long-term outlook is still questionable. Bob Foran, the MTA’s chief financial officer, said: “We don’t have unlimited reserves. We cannot continue to spend money unless we have assurance that we’re going to receive this federal support. So that’s why we’re asking for the $12 billion for this year and for next year so that we don’t run off a cliff beginning in January.”

Brrr…

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Trump Wants Biden Drug Tested Before First Debate

Trump Wants Biden Drug Tested Before First Debate

Tyler Durden

Wed, 08/26/2020 – 17:45

President Trump says he wants both he and Joe Biden to take drug tests before their first debate on September 29, according to an Oval Office interview with the Washington Examiner.

Trump “expressed suspicion at what he said was a sudden, marked improvement in Biden’s debate performance during the Democratic primary season,” which Trump thinks was due to the use of performance-enhancing drugs, according to the report.

“Nobody thought that he was even going to win,” Trump said of Biden – who participated in 11 debates during the primary season. Trump suggested that there was a big difference in Biden’s performance between the first debates against a crowded Democratic field and the last debate on March 15 against Sen. Bernie Sanders.

“… his debate performances were so bad. Frankly, his best performance was against Bernie. We’re going to call for a drug test, by the way, because his best performance was against Bernie. It wasn’t that he was Winston Churchill, because he wasn’t, but it was a normal, boring debate. You know, nothing amazing happened. And we are going to call for a drug test, because there’s no way — you can’t do that.”

More via the Washington Examiner:

Q: “What do you think was going on?”

“I don’t know how he could have been so incompetent in his debate performances and then all of a sudden be OK against Bernie,” Trump answered. “My point is, if you go back and watch some of those numerous debates, he was so bad. He wasn’t even coherent. And against Bernie, he was. And we’re calling for a drug test.”

Q: “Is this like a prizefight, where beforehand you have a test?”

“Well, it is a prizefight,” Trump answered. “It’s no different from the gladiators, except we have to use our brain and our mouth. And our body — to stand. I want all standing; they want to sit down.”

The president based his call entirely on his own observations, and not on any actual knowledge of Biden’s actions. “All I can tell you is that I’m pretty good at this stuff,” he said. “I look. I watched him in the debates with all of the different people. He was close to incompetent, if not incompetent. And against Bernie he was normal…And I say how does that happen?

The first Trump-Biden debate, to be held at Case Western Reserve University in Cleveland, Ohio, is little more than a month away. The president gave no indication of when he would make his drug test request, or even to whom. But he appeared to know that there is little chance such a thing would actually happen. “I think it’s appropriate,” Trump said. “I don’t know that they’ll let me do it, but I think that they should do it.”

“Go back and watch his performances in some of those debates,” Trump continued. “He didn’t know where he was. And all of a sudden he was not good, he was normal, and I don’t understand how. I don’t know if there is or not, but somebody said to me he must be on drugs. I don’t know if that’s true or not, but I’m asking for a drug test. Both candidates. Me, too. I take an aspirin a day.”

Meanwhile, Biden supporters have been looking for ways to wriggle out of an in-person debate altogether, while Notre Dame – which withdrew from hosting the first Trump-Biden debate after the St. Joseph County deputy health director recommended against it, and the college cited a “diminished educational value.”

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New Jersey Police Slashed a Man’s Tires and Smashed His Window After He Filed a Complaint Against Them

Smashed window

Two New Jersey police officers pleaded guilty this week to fourth-degree criminal mischief charges stemming from the retaliation they took against a city resident who filed an internal affairs complaint against them in September 2019.

On Tuesday, Asbury Park police officer Stephen Martinsen and former city Special Law Enforcement Officer Thomas Dowling admitted to vandalizing vehicles belonging to Ernest Mignoli after he filed an internal affairs complaint against them with the police department, according to a statement released Tuesday by the Monmouth County Prosecutor’s Office. The pair smashed a window on one of Mignoli’s vehicles and used a knife to slash tires on that vehicle and another, inflicting $500 worth of damage.

Mignoli told New Jersey 101.5 that a few days before his vehicles were vandalized, he had filed a complaint after seeing a drunk officer riding an electric scooter and performing tricks on a sidewalk outside of a bar frequented by police. In a 2019 interview, Mignoli described himself as an “outspoken critic of Asbury Park Police Department” and says he has documented multiple instances of what he believes to be inappropriate behavior carried out by local police. 

When the charges against Martinsen and Dowling were announced last year, the prosecutor’s office told the Asbury Park Press it could not speak to the nature of the administrative complaint, but said the police officers wore disguises on the night they damaged Mignoli’s property. Martinsen was initially suspended without pay while Dowling was terminated.

“Spiteful retaliation from law enforcement officers towards a citizen for any reason is an unacceptable option,” said Monmouth County Prosecutor Christopher J. Gramiccioni in the Tuesday statement. “This is in no way condoned at any level, for any reason.”

Asbury Park Police Chief David Kelso, who previously denounced the officers’ lack of “professionalism,” told Reason, “These officers were held accountable for their actions and misconduct and we will continue to hold our officers responsible to build upon the trust of the community that we serve.”

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New Jersey Police Slashed a Man’s Tires and Smashed His Window After He Filed a Complaint Against Them

Smashed window

Two New Jersey police officers pleaded guilty this week to fourth-degree criminal mischief charges stemming from the retaliation they took against a city resident who filed an internal affairs complaint against them in September 2019.

On Tuesday, Asbury Park police officer Stephen Martinsen and former city Special Law Enforcement Officer Thomas Dowling admitted to vandalizing vehicles belonging to Ernest Mignoli after he filed an internal affairs complaint against them with the police department, according to a statement released Tuesday by the Monmouth County Prosecutor’s Office. The pair smashed a window on one of Mignoli’s vehicles and used a knife to slash tires on that vehicle and another, inflicting $500 worth of damage.

Mignoli told New Jersey 101.5 that a few days before his vehicles were vandalized, he had filed a complaint after seeing a drunk officer riding an electric scooter and performing tricks on a sidewalk outside of a bar frequented by police. In a 2019 interview, Mignoli described himself as an “outspoken critic of Asbury Park Police Department” and says he has documented multiple instances of what he believes to be inappropriate behavior carried out by local police. 

When the charges against Martinsen and Dowling were announced last year, the prosecutor’s office told the Asbury Park Press it could not speak to the nature of the administrative complaint, but said the police officers wore disguises on the night they damaged Mignoli’s property. Martinsen was initially suspended without pay while Dowling was terminated.

“Spiteful retaliation from law enforcement officers towards a citizen for any reason is an unacceptable option,” said Monmouth County Prosecutor Christopher J. Gramiccioni in the Tuesday statement. “This is in no way condoned at any level, for any reason.”

Asbury Park Police Chief David Kelso, who previously denounced the officers’ lack of “professionalism,” told Reason, “These officers were held accountable for their actions and misconduct and we will continue to hold our officers responsible to build upon the trust of the community that we serve.”

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Is Andrew Cuomo Responsible For Thousands Of Nursing Home Deaths? The DoJ Is Trying To Find Out

Is Andrew Cuomo Responsible For Thousands Of Nursing Home Deaths? The DoJ Is Trying To Find Out

Tyler Durden

Wed, 08/26/2020 – 17:25

The DoJ is officially considering whether to launch high-profile federal investigations into a handful of mostly Democratic governors who adopted regulations requiring hospitals to return COVID-19 positive patients to nursing homes or other long-term care facilities, a blunder that has been described as perhaps the biggest policy error of the entire US outbreak.

Put another way – the DoJ (which Dems will undoubtedly castigate for ‘bowing to political pressure from the administration’) is trying to prove that Gov Andrew Cuomo really did kill grandma.

In a press release published Wednesday afternoon, the DoJ’s Civil Rights Division said it had requested data from New York, New Jersey, Michigan and Pennsylvania – all states with Democratic governors (though PA and MI are considered swing states) – about the timing of their mandatory return policies, and what input went into establishing them.

Cuomo has answered questions about the policy before; he’s claimed that he reversed it as soon as he was made aware of what was happening. But clearly not fast enough to stop the Empire State from reporting the largest death toll in the country, both per capita and in terms of the standalone total.

New York’s death rate by population is the second highest in the country with 1,680 deaths per million people. New Jersey’s death rate by population is 1,733 deaths per million people – the highest in the nation. In contrast, Texas’s death rate by population is 380 deaths per million people; and Texas has just over 11,000 deaths. According to Worldometer, NY reported a total of 32,984 deaths.

The goal is to determine whether there’s enough there to launch an investigation under the “Civil Rights of Institutionalized Persons Act” (CRIPA), which protects the civil rights of residents in state-run nursing homes. Specifically, they need to determine whether orders to mandate returning sick patients to the homes ultimately contributed to the higher rate of mortality.

Of course, even states like Texas, Florida and California, which are large states like New York, didn’t see such pronounced fatalities – or anything close to it. Those states are all in the ballpark of 10k deaths, and they only just reached that level recently.

Assistant Attorney General Eric Dreiband told the AP that the federal government has a responsibility to ensure that nursing home residents are adequately cared for with “dignity and respect”, and that their lives aren’t put at undue risk.

Cuomo hasn’t said anything about Wednesday’s DoJ announcement – he’s been too busy grandstanding about the new CDC guidelines, which he – and a group of other Democratic governors – claimed was part of a plot by Trump to cover up the coronavirus pandemic…or something like that.

It’s not like New York and these other states ever cared about federal guidelines before? Why should they start now?

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What Are You Going To Do As Our Money Dies?

What Are You Going To Do As Our Money Dies?

Tyler Durden

Wed, 08/26/2020 – 17:05

Authored by Adam Taggart via PeakProsperity6.com,

Central banks are killing our currency to protect the already-rich…

In our recent article It’s Time To Position For The Endgame, Chris Martenson explained how the US Federal Reserve and its sister central banks around the world have been engaged in the largest and most egregious wealth transfer in all of history — one that has been drastically exacerbated by the covid-19 pandemic.

The official response, tremendous monetary stimulus by the central banks paired with massive fiscal stimulus from national legislatures, has been pitched as “saving the system”.

Yet, in reality, it has merely served to accelerate the transfer of capital from the public into the pockets of the already-rich.

Anyone with eyes can see how the central banks have abandoned all pretense of monetary fiduciary responsibility and have simply cranked their printing presses up to “maximum”:

In concert with this surge of liquidity, national legislatures have added their own emergency measures. In the US alone, the CARES Act pushed nearly $3 trillion in fiscal stimulus into the system, and will highly likely soon be followed by another $1-3 trillion depending on which party’s bill gets passed.

Despite these staggering sums, the amount of money trickling into the average US household has been meager and is drying up.

Instead, these $trillions are mostly finding their way into the coffers and share prices of corporations. We have seen the fastest and most extreme V-shaped recovery in the history of the financial markets since the March swoon. The major indices are now back to record all-time-highs, despite the major carnage covid-19 has wreaked on the global economy.

So who benefits from that? Oh yeah, the people who own those companies. The already-rich.

Remember: 84% of all stocks are owned by the top 10% of households.

So in a nutshell, the official response from our “leaders” in government to the pandemic threat has been: Rescue the markets at all costs!

Chris refers to this as the Leave No Billionaire Behind (LIBB) Program. As he describes:

Between March-April 2020, the Fed added a staggering $282 billion to the bottom-line wealth of US billionaires:

But that wasn’t enough.

So the Fed kept printing. And buying, buying, and buying more and more financial assets held – of course – mainly by the already-wealthy.

By May 2020 the total added became $434 billion, making all the US billionaires more billionaire-y:

But even that wasn’t enough for the Fed.  So it printed even more, increasing the total to $583 billion by June:

Yep, you guessed it. It didn’t stop there. By July, the grand total was up to $637 billion:

Considering that US GDP dropped by -32.9% (annual rate) and clocked in at an annual rate of $19,408 billion in the second quarter of 2020, the US Federal Reserve had granted an astonishing (truly!) 3.3% of the entire output of the entire country to US billionaires.  For doing absolutely nothing.

Yes, people have many reasons to be angry and to protest these days. But they ought to be furious with the Federal Reserve and its lackeys in Congress who have utterly and completely failed to check these egregious, unfair, and socially destructive policies that grossly reward the elite at the expense of the bottom 99%.

Let’s do a little math here. Handing 3.3% of the value of the entire economic output of 160,000,000 working people to roughly 600 individuals is the equivalent of granting each one of those 600 billionaires the entire yearly output of 9,020 people.

It’s like the Fed decided that each billionaire deserved to have 9,020 people become their slaves for the year.  How is that *not* psychopathic?  How is that fair?  What’s the plan here? Keep going until these 600 people own everything in the world?

And where’s the media on this? They happily parrot every statement the Fed makes, without asking even the slightest of critical questions. They are failing us badly, too.

Okay, so why should you care?

Because what the Federal Reserve is doing generates enormous systemic risks which could well destroy the economy and much of our future prosperity.

At heart, I am a conservative in the sense that I’d like to keep (i.e. “conserve”) what we’ve got, both ecologically and economically. I’d vastly prefer that we change our nation’s destructive path now on our own terms than being forced to on reality’s terms later on. As painful as the former may be, the latter will be much more so.

History is complete on the matter: one cannot print one’s way to prosperity.  It’s been tried over and over again and my view is that if it could be done, we’d all be speaking Latin because the Roman Empire with it brilliant engineers would have figured it out millennia ago and would never have collapsed.

If the Romans couldn’t work it out, it simply can’t be done.  Mathematically, it also doesn’t pencil out.  Money is a social agreement, a contract.  It’s not real wealth.  Taking the attempt to the extreme, what would happen if everybody had a billion dollars and nobody had to work?

So printing currency only manages to delay and exacerbate the inevitable by building up the energy for its own destruction.

And the longer the delay, the worse the reckoning when it ultimately arrives.

So to recap, the Fed et al have ensured that the covid-19 pandemic has resulted in a boom for the elites, while the rest of us are experiencing an economic Depression that could last for years:

So, with the central banks hell-bent on supporting the rich by sending the prices of all financial assets farther into the stratosphere, is high/runaway inflation the natural next stage from here?

Will those worrying about a systemic “crash” from all the intervention and deformation be proved wrong?

We addressed these questions earlier this month for Peak Prosperity’s premium subscribers in Chris report Is High Inflation Now A Bigger Danger Than A Deflationary Crash?

Every so often, we’re encouraged by our paying subscribers to share an important report with the general public. This is one of those times.

If you’re not yet a subscriber, you can read the report in full, for free, by clicking here. (free registration required)

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