Is the Senate Filibuster a ‘Jim Crow Relic’ That Should Be Abolished in the Name of Democracy?

Obama-John-Lewis-funeral-7-30-20-Newscom

During his eulogy yesterday for Rep. John Lewis (D–Ga.), a leading figure in the civil rights movement, former President Barack Obama expressed support for eliminating the Senate filibuster, which he called a “Jim Crow relic.” That position contradicted the one Obama took as senator in a chamber controlled by Republicans, and his historical framing was more than a little misleading. The filibuster, which in its current form prevents a vote on legislation without 60 votes to cut off debate, was first used in 1837 during the controversy over the Second Bank of the United States, and it has been deployed many times since for reasons having nothing to do with government-enforced white supremacy.

It is true that segregationists used the filibuster to oppose civil rights legislation in the 1950s and ’60s. Most famously, Sen. Strom Thurmond, then a Democrat representing South Carolina, spoke for more than 24 hours to impede passage of the Civil Rights Act of 1957, which aimed to protect the voting rights of African Americans in the South. Southern legislators—including Sen. Robert Byrd (D–W.Va.), an ardent defender of Senate traditions—also used the filibuster in an unsuccessful attempt to block the Civil Rights Act of 1964, which banned segregation in public schools and racial discrimination in voting requirements, employment, and places of public accommodation.

But that is just a snapshot of the filibuster’s potential uses, which can be either malign or beneficial, depending on the target and one’s view of the legislation’s merits. Just as the principle of federalism does not qualify as a “Jim Crow relic” simply because segregationists invoked it, the filibuster cannot be deemed irredeemable simply because they found it useful. Like other restraints on the majority’s will—including those mandated by the Constitution, such as requiring bicameral approval of legislation and the president’s assent in the absence of a congressional supermajority—the filibuster is an ideologically neutral obstacle that makes it harder to pass laws. Whether you think its net impact is good or bad is apt to depend not only on which party happens to be in power but also on your general view of the work that Congress does.

The filibuster was not part of the original constitutional design. It arose from a rule change that Vice President Aaron Burr urged in 1805. As George Washington University political scientist Sarah Binder explained during a 2010 Senate hearing, Burr thought the chamber’s rule book was cluttered with unnecessary provisions, including what was known as the “previous question” motion, which it turned out could be used to close debate with a simple majority. Unlike the Senate, the House of Representatives retained that rule.

“Today, we know that a simple majority in the House can use the rule to cut off debate,” Binder said. “But in 1805, neither chamber used the rule that way. Majorities were still experimenting with it. And so when Aaron Burr said, ‘Get rid of the previous question motion,’ the Senate didn’t think twice. When they met in 1806, they dropped the motion from the Senate rule book.” In other words, “the filibuster was created by mistake.”

However inadvertent its inception, the filibuster has proven useful to legislators of various parties during the last two centuries, as its persistence demonstrates. And while the very term filibuster—derived from the French flibustier, referring to pirates in the West Indies—suggests a lawless hijacking, there is nothing illegitimate about the tactic, since it is authorized by the Senate’s rules.

When they are in the majority, senators may complain that the filibuster is undemocratic. But the same could be said of many constitutional provisions that prevent a legislative majority from doing whatever it wants, including the restrictions imposed by the Bill of Rights, not to mention the basic principle that Congress may exercise only those powers it has been explicitly granted.

Three decades elapsed between the Senate’s rule change and the first recorded use of the filibuster. In 1837, Whig senators used the tactic in an attempt to keep Democrats from expunging an 1834 resolution that censured President Andrew Jackson for removing federal funds from the Second Bank of the United States. The Democrat-controlled Senate nevertheless nullified the resolution by a five-vote margin.

While “there were very few filibusters before the Civil War,” Binder noted, they were common by the 1880s, deployed against civil rights legislation but also against election law changes, nominations, and the appointment of Senate officers. In 1917, Woodrow Wilson, outraged by Republican senators’ filibustering of his proposal to arm merchant ships as a deterrent to German U-boats, demanded reform to disempower this “little group of willful men.” The Senate responded by adopting Rule 22, which empowered a two-thirds majority to cut off debate—a compromise between Democrats who favored a simple-majority rule and Republicans who resisted any change. In 1975, the Senate reduced the majority required for cloture from two-thirds to three-fifths, or from from 67 to 60 votes in a chamber with 100 members.

“Adoption of Rule 22 occurred because Wilson and the Democrats framed the rule as a matter of national security,” Binder noted. “They fused procedure with policy, and used the bully pulpit to shame senators into reform.” While that description suggests senators who opposed American involvement in World War I were engaged in shameful obstruction, a more skeptical view of that senseless and disastrous conflict suggests otherwise, and the defeat of the Wilson-backed bill inspired a chapter of Profiles in Courage.

Whatever your view of Wilson or World War I, it is indisputable that senators have used the filibuster for what they sincerely believed were sound, public-spirited reasons going beyond petty partisan interests. To take an example that appeals to libertarians, Sen. Rand Paul (R–Ky.) protested the Obama administration’s policy of “targeted killing” via drone with an old-fashioned 13-hour talking filibuster against the nomination of CIA Director John Brennan in 2013. Those of a different political persuasion may admire the eight-and-a-half-hour filibuster that Sen. Bernie Sanders (I–Vt.) pulled off in 2010 to protest the extension of federal tax cuts.

Both Democrats and Republicans have used filibusters or the threat of them to block the nomination of judges and justices whose records they found alarming. That option was largely foreclosed in 2013, when a Democrat-controlled Senate, frustrated by Republican opposition to Obama’s judicial picks, approved a rule that allowed a simple majority to end debate on almost all presidential nominations except for the Supreme Court—an exception that was eliminated four years later, after Republicans regained control of the Senate in 2014 and Donald Trump was elected president in 2016. Both changes were accomplished via the “nuclear option,” a parliamentary maneuver that allows a simple majority to approve rule changes.

Majority Leader Harry Reid (D–Nev.), who had opposed the nuclear option as a threat to venerable Senate norms when George W. Bush was president and Republicans ran the Senate, switched positions in 2013. So did Minority Leader Mitch McConnell (R–Ky.), who as the majority whip during the Bush administration had threatened to make the rule change that Reid resisted.

McConnell warned Democrats that they would regret their shortsighted move. And presumably they did once McConnell, converting again, greased the skids for Trump’s Supreme Court nominees and the president began reshaping the federal judiciary. As the Cato Institute’s Gene Healy noted in 2013, “Serious political movements shouldn’t try to knock down all the barriers to power whenever they temporarily enjoy it, because nothing is permanent in politics save the drive for more federal power, and the weapons you forge may someday be detonated by the other side.”

When politicians are in the mood to defend filibusters (i.e., when their party is not in charge of the Senate), they often say that preserving the tactic helps ensure that the minority’s views receive adequate consideration as legislation is crafted. Bipartisanship for its own sake is a dubious goal. Joe Biden, who is trying to replace Donald Trump as the guy who gets to make nominations without worrying about filibusters, has famously cited his collaboration with Strom Thurmond—yes, the same senator who tried to block a civil rights bill with the longest filibuster in U.S. history—as an inspiring example of bipartisanship. That collaboration produced the Comprehensive Crime Control Act of 1984, a godawful piece of legislation that set the pattern for a decade of indiscriminately punitive criminal justice policies.

Still, there is something to be said for mechanisms that require the majority to slow down, reflect a bit, and maybe even read legislation before passing it. Biden used to think so. Last February, while he was competing for the Democratic nomination, he said he was against eliminating filibusters. But this week, contemplating a victory that looks increasingly likely, he is having second thoughts.

Despite his adulation of compromise and consensus, Biden now thinks it may be time to remove this impediment to presidential agendas. “It’s going to depend on how obstreperous [Republicans] become,” Biden told reporters on Monday. “But I think you’re going to just have to take a look at it.”

The situational ethics of filibusters could be seen as evidence that the time-honored tradition is nothing more than a tricky maneuver that members of both major parties praise when it’s convenient and condemn when it’s not. But the relevant question is whether that tricky maneuver, on balance, gives us better or worse government. When you think about the gratuitous, pernicious, and blatantly unconstitutional legislation that Congress manages to pass even when the filibuster option is available, it is hard to imagine that eliminating this obstacle would improve the situation.

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Is the Senate Filibuster a ‘Jim Crow Relic’ That Should Be Abolished in the Name of Democracy?

Obama-John-Lewis-funeral-7-30-20-Newscom

During his eulogy yesterday for Rep. John Lewis (D–Ga.), a leading figure in the civil rights movement, former President Barack Obama expressed support for eliminating the Senate filibuster, which he called a “Jim Crow relic.” That position contradicted the one Obama took as senator in a chamber controlled by Republicans, and his historical framing was more than a little misleading. The filibuster, which in its current form prevents a vote on legislation without 60 votes to cut off debate, was first used in 1837 during the controversy over the Second Bank of the United States, and it has been deployed many times since for reasons having nothing to do with government-enforced white supremacy.

It is true that segregationists used the filibuster to oppose civil rights legislation in the 1950s and ’60s. Most famously, Sen. Strom Thurmond, then a Democrat representing South Carolina, spoke for more than 24 hours to impede passage of the Civil Rights Act of 1957, which aimed to protect the voting rights of African Americans in the South. Southern legislators—including Sen. Robert Byrd (D–W.Va.), an ardent defender of Senate traditions—also used the filibuster in an unsuccessful attempt to block the Civil Rights Act of 1964, which banned segregation in public schools and racial discrimination in voting requirements, employment, and places of public accommodation.

But that is just a snapshot of the filibuster’s potential uses, which can be either malign or beneficial, depending on the target and one’s view of the legislation’s merits. Just as the principle of federalism does not qualify as a “Jim Crow relic” simply because segregationists invoked it, the filibuster cannot be deemed irredeemable simply because they found it useful. Like other restraints on the majority’s will—including those mandated by the Constitution, such as requiring bicameral approval of legislation and the president’s assent in the absence of a congressional supermajority—the filibuster is an ideologically neutral obstacle that makes it harder to pass laws. Whether you think its net impact is good or bad is apt to depend not only on which party happens to be in power but also on your general view of the work that Congress does.

The filibuster was not part of the original constitutional design. It arose from a rule change that Vice President Aaron Burr urged in 1805. As George Washington University political scientist Sarah Binder explained during a 2010 Senate hearing, Burr thought the chamber’s rule book was cluttered with unnecessary provisions, including what was known as the “previous question” motion, which it turned out could be used to close debate with a simple majority. Unlike the Senate, the House of Representatives retained that rule.

“Today, we know that a simple majority in the House can use the rule to cut off debate,” Binder said. “But in 1805, neither chamber used the rule that way. Majorities were still experimenting with it. And so when Aaron Burr said, ‘Get rid of the previous question motion,’ the Senate didn’t think twice. When they met in 1806, they dropped the motion from the Senate rule book.” In other words, “the filibuster was created by mistake.”

However inadvertent its inception, the filibuster has proven useful to legislators of various parties during the last two centuries, as its persistence demonstrates. And while the very term filibuster—derived from the French flibustier, referring to pirates in the West Indies—suggests a lawless hijacking, there is nothing illegitimate about the tactic, since it is authorized by the Senate’s rules.

When they are in the majority, senators may complain that the filibuster is undemocratic. But the same could be said of many constitutional provisions that prevent a legislative majority from doing whatever it wants, including the restrictions imposed by the Bill of Rights, not to mention the basic principle that Congress may exercise only those powers it has been explicitly granted.

Three decades elapsed between the Senate’s rule change and the first recorded use of the filibuster. In 1837, Whig senators used the tactic in an attempt to keep Democrats from expunging an 1834 resolution that censured President Andrew Jackson for removing federal funds from the Second Bank of the United States. The Democrat-controlled Senate nevertheless nullified the resolution by a five-vote margin.

While “there were very few filibusters before the Civil War,” Binder noted, they were common by the 1880s, deployed against civil rights legislation but also against election law changes, nominations, and the appointment of Senate officers. In 1917, Woodrow Wilson, outraged by Republican senators’ filibustering of his proposal to arm merchant ships as a deterrent to German U-boats, demanded reform to disempower this “little group of willful men.” The Senate responded by adopting Rule 22, which empowered a two-thirds majority to cut off debate—a compromise between Democrats who favored a simple-majority rule and Republicans who resisted any change. In 1975, the Senate reduced the majority required for cloture from two-thirds to three-fifths, or from from 67 to 60 votes in a chamber with 100 members.

“Adoption of Rule 22 occurred because Wilson and the Democrats framed the rule as a matter of national security,” Binder noted. “They fused procedure with policy, and used the bully pulpit to shame senators into reform.” While that description suggests senators who opposed American involvement in World War I were engaged in shameful obstruction, a more skeptical view of that senseless and disastrous conflict suggests otherwise, and the defeat of the Wilson-backed bill inspired a chapter of Profiles in Courage.

Whatever your view of Wilson or World War I, it is indisputable that senators have used the filibuster for what they sincerely believed were sound, public-spirited reasons going beyond petty partisan interests. To take an example that appeals to libertarians, Sen. Rand Paul (R–Ky.) protested the Obama administration’s policy of “targeted killing” via drone with an old-fashioned 13-hour talking filibuster against the nomination of CIA Director John Brennan in 2013. Those of a different political persuasion may admire the eight-and-a-half-hour filibuster that Sen. Bernie Sanders (I–Vt.) pulled off in 2010 to protest the extension of federal tax cuts.

Both Democrats and Republicans have used filibusters or the threat of them to block the nomination of judges and justices whose records they found alarming. That option was largely foreclosed in 2013, when a Democrat-controlled Senate, frustrated by Republican opposition to Obama’s judicial picks, approved a rule that allowed a simple majority to end debate on almost all presidential nominations except for the Supreme Court—an exception that was eliminated four years later, after Republicans regained control of the Senate in 2014 and Donald Trump was elected president in 2016. Both changes were accomplished via the “nuclear option,” a parliamentary maneuver that allows a simple majority to approve rule changes.

Majority Leader Harry Reid (D–Nev.), who had opposed the nuclear option as a threat to venerable Senate norms when George W. Bush was president and Republicans ran the Senate, switched positions in 2013. So did Minority Leader Mitch McConnell (R–Ky.), who as the majority whip during the Bush administration had threatened to make the rule change that Reid resisted.

McConnell warned Democrats that they would regret their shortsighted move. And presumably they did once McConnell, converting again, greased the skids for Trump’s Supreme Court nominees and the president began reshaping the federal judiciary. As the Cato Institute’s Gene Healy noted in 2013, “Serious political movements shouldn’t try to knock down all the barriers to power whenever they temporarily enjoy it, because nothing is permanent in politics save the drive for more federal power, and the weapons you forge may someday be detonated by the other side.”

When politicians are in the mood to defend filibusters (i.e., when their party is not in charge of the Senate), they often say that preserving the tactic helps ensure that the minority’s views receive adequate consideration as legislation is crafted. Bipartisanship for its own sake is a dubious goal. Joe Biden, who is trying to replace Donald Trump as the guy who gets to make nominations without worrying about filibusters, has famously cited his collaboration with Strom Thurmond—yes, the same senator who tried to block a civil rights bill with the longest filibuster in U.S. history—as an inspiring example of bipartisanship. That collaboration produced the Comprehensive Crime Control Act of 1984, a godawful piece of legislation that set the pattern for a decade of indiscriminately punitive criminal justice policies.

Still, there is something to be said for mechanisms that require the majority to slow down, reflect a bit, and maybe even read legislation before passing it. Biden used to think so. Last February, while he was competing for the Democratic nomination, he said he was against eliminating filibusters. But this week, contemplating a victory that looks increasingly likely, he is having second thoughts.

Despite his adulation of compromise and consensus, Biden now thinks it may be time to remove this impediment to presidential agendas. “It’s going to depend on how obstreperous [Republicans] become,” Biden told reporters on Monday. “But I think you’re going to just have to take a look at it.”

The situational ethics of filibusters could be seen as evidence that the time-honored tradition is nothing more than a tricky maneuver that members of both major parties praise when it’s convenient and condemn when it’s not. But the relevant question is whether that tricky maneuver, on balance, gives us better or worse government. When you think about the gratuitous, pernicious, and blatantly unconstitutional legislation that Congress manages to pass even when the filibuster option is available, it is hard to imagine that eliminating this obstacle would improve the situation.

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You Can Now Be Fined, Jailed, & Assaulted For Not Wearing A Mask In America

You Can Now Be Fined, Jailed, & Assaulted For Not Wearing A Mask In America

Tyler Durden

Fri, 07/31/2020 – 17:30

Authored by Simon Black via SovereignMan.com,

Are you ready for this week’s absurdity? Here’s our Friday roll-up of the most ridiculous stories from around the world that are threats to your liberty, risks to your prosperity… and on occasion, inspiring poetic justice.

Governors proclaim chicken wings are not a meal

The pandemic has made Governors so power hungry that they are now telling restaurants what counts as a meal.

States like California and New York are forcing restaurants and bars to only serve alcohol with meals.

That prompted some establishments to add special menu items so that patrons who just wanted a drink didn’t have to order an entire meal.

But now that tactic has caught the eye of Comrade-Governors Newsom and Cuomo.

They have decided that not only is it within their power to tell restaurants if they are allowed to serve drinks and food, but these Governors also claim the power to dictate what counts as a meal.

The dictator of California officially decreed that buffalo chicken wings are not a meal.

Nor are reheated frozen entrees, “pizza bites (as opposed to a pizza)”, or “any small portion of a dish that may constitute a main course when it is not served in a full portion or when it is intended for sharing in small portions.”

And the dictator of New York said the food available has to be “More than just hors d’oeuvres, chicken wings, you had to have some substantive food. The lowest level of substantive food were sandwiches.”

There you have it, sandwiches are a meal, chicken wings are not. So says the politburo.

Click here to read the full story.

A&E loses half its viewers after canceling “Live PD”

Amid calls for police accountability, A&E canceled its reality TV show “Live PD” to try to appease the Twitter mob.

Does this seem counterintuitive to you? It does to me. Following cops around with a camera seems like it would INCREASE police accountability.

But A&E seems to think that if they stop filming the police, then transparency and accountability will improve. In other news, 2+2 = 5.

But it turns out bowing to the Twitter mob isn’t necessarily good for business.

A&E’s total prime time viewership dropped by over 50% in the week after the show was cancelled.

And the channel has hardly recovered since then. Compared to this time last year, A&E has suffered a 36% total decline in viewers.

“Live PD” and its spin-offs were by far the most successful shows on A&E and sometimes made up 85% of its programming.

The shows brought in almost $300 million last year in advertising revenue.

Oops.

Click here to read the full story.

California State Universities now require Social Justice course

The California State University system is adding its first new general education requirement in 40 years.

Students at all 23 college campuses will now be required to take a class on either social justice, or ethnic studies.

But this new requirement was met with ANGER by the California Faculty Association.

They said it was “deplorable and disrespectful” that this requirement was passed without the consultation of CSU Council of Ethnic Studies.

And they were disappointed that the new rule didn’t go far enough, because some of the classes that fulfill the requirement are not closely enough related to ethnic studies.

This is a great reason to absolutely NEVER try to appease the Twitter mob– they won’t be satisfied, they will always want more. And YOU might even become a target for being the wrong kind of woke.

But this is a great way to truly mark the point where a college degree becomes worthless (especially when you are paying full tuition for online classes).

Click here to read the full story.

Woman pepper-sprays couple for not wearing masks during picnic

A couple went to a San Diego park to have lunch.

They set up their picnic, properly socially distanced from other park-goers, and removed their masks to eat.

That’s when they began being harassed by an older woman. She flipped them off, and yelled obscenities about them not wearing masks in public.

Then this woman walked up to the picnicking couple and pepper sprayed them.

It was all caught on camera by another person at the park. As the culprit walked off, she claimed she was defending herself… against people in an outdoor park, minding their own business, eating lunch.

So now, because of the Covid hysteria, people think it’s “defense” to physically attack strangers for not wearing a mask. That’s where we are as a society.

Click here to read the full story.

Indiana Executive Order carries 6 months in jail for no mask

First it was individual towns threatening jail time over not wearing masks.

Now the entire state of Indiana will force residents to wear masks anytime they are in public, with the threat of jail hanging over anyone who does not comply.

The Governor of Indiana thinks six months in jail is appropriate for people who don’t wear a mask in public.

But he said, “We are going to continue to try to appeal to Hoosiers to do the right thing… mask police will not be patrolling Hoosier streets.”

So then what’s that six months in jail for?

Click here to read the full story.

… but Mask Police WILL be patrolling Miami streets

The mask police have formed a 39-officer-strong unit in Miami to look for violators showing their dirty faces in public.

Anyone caught without a mask will be charged $50 for a first offense, then $100.

A third offense comes with a $500 fine, and arrest.

Click here to read the full story.

… yet somehow Federal employees are exempt from wearing masks

You can now be fined $1,000 in Washington DC for not wearing a mask in public.

But the Mayor exempted lawmakers, judges, and federal employees from the order. So apparently federal employees are unable to spread the virus?

That must be why the laws only apply to peasants like us, not to the important people making and enforcing the laws.

Click here to read the full story.

*  *  *

On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years. That’s why we published a new, 50-page long Ultimate Guide on Gold & Silver that you can download here.

via ZeroHedge News https://ift.tt/3k3krKS Tyler Durden

Store Brands Which Require Immediate Cancellation

Store Brands Which Require Immediate Cancellation

Tyler Durden

Fri, 07/31/2020 – 17:10

As the list of companies, organizations and institutions experiencing a racial awakening grows after decades of un-wokeness, it seems that some brands just aren’t taking this national enlightenment seriously.

Sure, Aunt Jemima, Eskimo Pie, and the Washington Redskins may have been successfully banished from the national consciousness – but institutions such as Yale University – founded by slave trader Elihu Yale, the Atlanta Braves, and Squaw Valley Ski Resort at Lake Tahoe have chosen to remain racistly named despite incalculable levels of insensitivity.

That’s not all. There are dozens of commonly sold grocery store items which also lack sufficient wokeness, and must be canceled immediately so that they no longer offend.

Watch:

What else has escaped the woke reckoning?

via ZeroHedge News https://ift.tt/2XbFnoY Tyler Durden

The Great Unraveling Has Begun

The Great Unraveling Has Begun

Tyler Durden

Fri, 07/31/2020 – 16:53

Authored by Michael Snyder via TheMostImportantNews.com,

We Are Experiencing Economic Devastation On A Scale That America Has Never Seen Before

For a very long time we have been warned that a U.S. economic collapse was inevitably coming, and now it is here.  Fear of COVID-19 and unprecedented civil unrest in our major cities have combined to plunge us into a historic economic downturn, and nobody is exactly sure what is going to happen next. 

On Thursday, we learned that U.S. GDP was down 32.9 percent on an annualized basis last quarter.  That officially makes last quarter the worst quarter in all of U.S. history, and many people believe that this new economic depression is just getting started.  But of course not all areas of the country are being affected equally.  According to USA Today, states such as Hawaii, Nevada, Michigan and New York were hit particularly hard last quarter…

Every state was walloped last quarter, though ones that rely heavily on travel and tourism, such as Hawaii and Nevada, were hit hardest by the downturn, according to employment figures analyzed by economist Adam Kamins of Moody’s Analytics. Michigan, the heart of the nation’s auto industry, was slammed as consumers put off car purchases. And densely populated Northeast states struck by the most severe virus outbreaks – like New York, New Jersey and Massachusetts – absorbed among the heaviest economic losses as governors shut down earlier and residents stayed home.

Originally, the mainstream media was telling us that the U.S. economy would come surging back to life during the third quarter, but we continue to get more signs that indicate that the economy is starting to slow down again.

For example, the Labor Department just released some new numbers that were more than just a little bit startling.  If you can believe it, another 1.434 million Americans filed new claims for unemployment benefits last week.  That was an increase over last week’s revised number, and it represents the second week in a row that initial claims have risen.

Overall, new claims for unemployment benefits have now been above one million for 19 weeks in a row.

Personally, I don’t know how this is even possible.  Prior to this year, the all-time record for a single week was just 695,000.  The numbers that we have been getting week after week are so obscene that they are truly difficult to believe.

Overall, a grand total of more than 54 million Americans have filed new claims for unemployment benefits during the last 19 weeks.

But there were only 152 million Americans working when employment peaked back in February.  So how is it possible that 54 million workers have filed initial claims for unemployment benefits so far this year?

Have things really gotten that bad?

Maybe they have.  Bloomberg just reported on a recent Census Bureau survey that found that 30 million Americans claim that they did not have enough food to eat during the week that ended on July 21st…

Food insecurity for U.S. households last week reached its highest reported level since the Census Bureau started tracking the data in May, with almost 30 million Americans reporting that they’d not had enough to eat at some point in the seven days through July 21.

In the bureau’s weekly Household Pulse Survey, roughly 23.9 million of 249 million respondents indicated they had “sometimes not enough to eat” for the week ended July 21, while about 5.42 million indicated they had “often not enough to eat.”

Once again, those numbers are so shocking that they are hard for me to believe.

Are there really tens of millions of Americans that cannot afford three meals a day right now?

Maybe there are, but it is still difficult to grasp the fact that we have fallen so far in such a short period of time.

Meanwhile, we just got more bad news about the restaurant industry.  According to the National Restaurant Association, at least 15 percent of all restaurants in the entire country will be shutting down.  The following comes from Zero Hedge

The National Restaurant Association has determined that at least 15% of all restaurants will close. This number could be a lot higher at the end of the year as Goldman Sachs reports the economic recovery is now reversing.

Small restaurant operators, who fear a double-dip recession, have now resorted to liquidating their eateries on Facebook Marketplace.

A simple search of “restaurant” on Facebook Marketplace, within 80 miles of Trenton, New Jersey, comes up with dozens and dozens and dozens of mom and pop eateries that are trying to get out of the game.

Actually, if we only lose 15 percent of our restaurants we should hold a massive celebration, because that will be a rip-roaring victory.

As fear of COVID-19 stretches on month after month, and as civil unrest becomes even worse, it will become increasingly difficult for restaurants, bars, movie theaters and other establishments where the public gathers to survive.

In the end, I think that we are going to lose hundreds of thousands of restaurants, and it deeply grieves me to say that.

Of course every industry is going to be devastated by this new economic depression, and even the biggest names are going to get hit really hard.

In fact, you know that things are starting to get really bad when even Walmart starts laying off workers

Walmart Inc. is joining the ranks of Macy’s and L Brands in eliminating hundreds of corporate jobs in order to cut costs.

Employees in the mega-retailer’s store planning, logistics, and real estate units have reportedly received pink slips, reported Bloomberg Thursday

If Walmart executives truly believed that the U.S. economy was going to be returning to normal, they would not have made such a move.

But at this point it should be clear to everyone that there isn’t going to be a return to normal.

Very challenging times are on the horizon, and what we have experienced so far is just the tip of the iceberg.

More big corporations are going to go bankrupt, more businesses are going to fail, more workers are going to be laid off, and the financial dominoes are going to start to fall at a pace that is absolutely breathtaking.

So many of the things that myself and so many other economic writers have been warning about are starting to happen.

A great unraveling has begun, and it is imperative for all of us to find a way to survive the severe economic pain that is ahead of us.

via ZeroHedge News https://ift.tt/3glkdMS Tyler Durden

Ficth Revises United States Credit Outlook To “Negative”

Ficth Revises United States Credit Outlook To “Negative”

Tyler Durden

Fri, 07/31/2020 – 16:36

Just over a month ago, Fitch Ratings downgraded Canada from AA+ to AA; and tonight, shortly after the market close – with bond yields at record lows – the ratings agency has revised its outlook for the United States from Stable To Negative, citing “ongoing deterioration in US public finances and the absence of a credible fiscal consolidation plan…”

Full Statement:

KEY RATING DRIVERS

The U.S. sovereign rating is supported by structural strengths that include the size of the economy, high per capita income and a dynamic business environment. The U.S. benefits from issuing the U.S. dollar, the world’s preeminent reserve currency, and from the associated extraordinary financing flexibility, which has been highlighted once again by developments since March 2020. Fitch considers U.S. debt tolerance to be higher than that of other ‘AAA’ sovereigns.

However, the Outlook has been revised to Negative to reflect the ongoing deterioration in the U.S. public finances and the absence of a credible fiscal consolidation plan, issues that were highlighted in the agency’s last rating review on March 26, 2020. High fiscal deficits and debt were already on a rising medium-term path even before the onset of the huge economic shock precipitated by the coronavirus. They have started to erode the traditional credit strengths of the US. Financing flexibility, assisted by Federal Reserve intervention to restore liquidity to financial markets, does not entirely dispel risks to medium-term debt sustainability, and there is a growing risk that U.S. policymakers will not consolidate public finances sufficiently to stabilize public debt after the pandemic shock has passed. Although a massive policy response has prevented a deeper downturn – such that Fitch expects a less severe contraction in the U.S. in 2020 than in many other advanced economies – the agency has revised down our macroeconomic projections since March and downside risks persist.

The U.S. had the highest government debt of any AAA-rated sovereign heading into the crisis, and Fitch expects general government debt to exceed 130% of GDP by 2021. Fitch’s debt dynamics analysis indicates that debt/GDP could stabilize temporarily from 2023 if fiscal balances return to pre-pandemic levels, but only assuming that interest rates stay very low. Health and social security costs are still set to rise over the medium-term while federal revenue in FY19 was close to its long-term average as a share of GDP.

Fitch expects the general government calendar year deficit to widen to over 20% of GDP in 2020. The agency expects the deficit to narrow to 11% of GDP in 2021 as economic support measures are rolled back. The cumulative federal deficit in the first nine months of FY20 (starting in October 2019) reached USD2.7 trillion, compared with USD747 billion in the same period of FY19. Spending rose by USD1.6 trillion, or by 49%. The Congressional Budget Office (CBO) estimated in April that the federal deficit would reach USD3.7 trillion in FY20. In the three months since this CBO estimate was published, Congress has made no major addition to the support packages. However, with Congress considering a further round of fiscal stimulus (Senate Republicans’ draft Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act would provide further transfers to households and extend supplementary federal unemployment benefits at a reduced level), Fitch assumes that a further USD1 trillion in measures will be passed in August to be spread over FY20 and FY21.

The U.S. government has once again demonstrated exceptional financing flexibility, borrowing just under $3 trillion between the end of February and the end of June, of which USD2.5 trillion was in the form of treasury bills, while the Fed has intervened to backstop financial markets (expanding its balance sheet by USD2.6 trillion since mid-March) and boost global dollar liquidity. Amid a borrowing surge, borrowing costs have fallen, with the 10-year treasury bond yielding 0.6%. Marginal government borrowing costs currently average below 1% for up to 20 years. The effective interest rate on the federal government debt stock fell (by 0.75 percentage points (pp) compared with a year ago) to 1.75% by June 2020, and should continue to fall.

In line with our assumption that the Federal Reserve will hold its policy rate at 0.25%, Fitch expects negative real interest rates to provide some support to public debt dynamics. If real growth also reverted to 2%, a debt stabilizing primary deficit for the general government by 2024 could be around 3%-4% of GDP, comparable with 2019 levels. But it is uncertain whether very low market rates will persist once growth and inflation pick up. At current levels of indebtedness, a 1% rise in the effective rate on the debt would add 1.2% of GDP to the interest bill in a single year.

The future direction of fiscal policy depends partly on November’s presidential and congressional elections. The odds of Democrats overturning the Republican majority in the Senate have shifted in their favor over the past quarter, but it is unlikely that either party will achieve a 60-seat majority. A continuation of policy gridlock is a risk. Political polarization may weaken institutions and reduces the scope for bipartisan cooperation, hindering attempts to address structural issues (including some highlighted by the pandemic and protests) but also longer-term fiscal challenges. The economic crisis has likely brought forward the point at which social security and healthcare trust funds are exhausted, demanding bipartisan legislative action to sustainably fund or reform these programs.

Fitch expects the economy to contract by 5.6% in 2020 and recover by 4% in 2021, with the massive fiscal policy response averting a deeper downturn. Personal income rose in 2Q20, despite this marking the trough of the recession, marked by a historic fall in employment and hours worked. Real GDP nevertheless contracted at a 33% annualized rate, in line with Fitch’s expectations, and there are downside risks to Fitch’s growth forecast, with high-frequency data starting to show a greater impact from the pandemic in parts of the country where the public health response has been deficient and fading fiscal policy stimulus. Unemployment, spiked to 14.7% in April as firms shuttered and laid off staff, but declined to 11.1% in June as some of those on furlough returned to work. The prolongation of this stressful economic period will weigh on human capital, financial stability and future growth potential. The deepest post-war recession will not only open up a large output gap, but also take a permanent toll on potential GDP. As the output gap closes, Fitch expects growth to average 2.2% in 2023-25, above our revised estimate of potential growth.

Fitch expects inflation to remain low, averaging below 1% in 2020-2022 Personal consumption expenditures (PCE) inflation was 0.5% in May and CPI was 0.6% in June); the crisis has disrupted both supply and demand. However it may have accelerated a number of trends that could bring about higher inflation over the medium to long-term. Market expectations of inflation as derived from yields on inflation-linked bonds have bottomed out and are rising. Having laid bare inequalities in the provision of health care and exacerbated widening wealth inequality (although government assistance to households focused substantial resources towards those on lower incomes), the crisis could also lead to pressure for higher public spending, greater state involvement in the economy, redistribution of incomes and moves to strengthen workers’ bargaining power.

The aims and policies of the Fed and Treasury have so far complemented each other. Longer-term, a resurgence of inflation might call for a rise in interest rates, potentially even bringing the goals of the Fed and the government into conflict, and adversely affecting debt dynamics, although this is not Fitch’s core forecast. It is a truism that the U.S. government cannot run out of money to service its debts. However, there is a potential (albeit remote) risk of fiscal dominance if debt/GDP spirals, posing risks to U.S. economic dynamism and reserve currency status.

Governance: United States has an ESG Relevance Score (RS) of 5 for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption, as is the case for all sovereigns. Theses scores reflect the high weight that the WBGI have in our proprietary Sovereign Rating Model. United States has a high WBGI, ranking at the 84th percentile, reflecting its long track record of stable and peaceful political transitions, well established rights for participation in the political process, strong institutional capacity, effective rule of law and a low level of corruption.

RATING SENSITIVITIES

The main factors that could, individually or collectively, lead to a negative rating action/downgrade:

  • Public Finances: Absence of a credible commitment to address medium-term public spending and debt challenges that would arrest the upward trajectory of the general government debt to GDP ratio after the pandemic shock;

  • Macroeconomic policy, performance and prospects: A decline in the coherence and credibility of U.S. policymaking that undermines the reserve currency status of the U.S. dollar and the government’s financing flexibility.

The main factors that could, individually or collectively, lead to a positive rating action

  • Public Finances: adoption of a set of policies consistent with a protracted reduction of the debt/GDP ratio after the pandemic shock.

What will this move do to gold? Or has it seen this coming for a while?

 

 

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Tom Cotton’s Only Challenger Is a Black Libertarian Prison Chaplain

Ricky Dale Harrington, Jr.

Sen. Tom Cotton’s Democratic challenger, Josh Mahony, dropped out of the U.S. Senate race just hours after the filing deadline closed. Between this and Cotton’s comments over the past few weeks, which range from calling slavery a “necessary evil” to calling for military force in American streets, many Arkansas voters worry that the Republican incumbent is running unopposed.

Actually, there’s Ricky Dale Harrington, Jr.

There is an alternative to Tom Cotton,” reads a Tuesday headline from the Arkansas Times, reminding voters that Cotton’s race is not as uncontested as some people believe.

A Libertarian prison chaplain who hopes to be Arkansas’ first black senator, Harrington is indeed a unique candidate. The 34-year-old Pine Bluff resident is a husband and a father. He’s also the son of a corrections officer and a nurse, which he says is particularly fitting since his campaign’s main issues are criminal justice reform and health care reform.

And he’s running, in part, to keep Cotton out of the White House.

“The Libertarian Party of Arkansas is very enthusiastic about the campaign of Ricky Dale Harrington, Jr. to unseat Senator Tom Cotton,” says Michael Pakko, the Libertarian Party’s state chair. “It is rare to find a high-profile race like this featuring a two-way contest between a Libertarian and an incumbent. We intend to make the most of the publicity.

“Ricky is an exceptional candidate,” Pakko adds. “He is an ordained minister who has experienced life as a missionary overseas, giving him a worldview that is both expansive and nuanced. His experience as a counselor in the Arkansas prison system has given him a first-hand view of the problems of our criminal justice system, providing him with the initial motivation to run for office.”

Ricky Dale Harrington Jr for US Senate/Facebook
Ricky Dale Harrington Jr for US Senate/Facebook

Harrington was brought to libertarianism by Ron Paul’s 2008 campaign for the Republican presidential nomination. Paul’s non-interventionist stance on American foreign policy won him over, Harrington recalls.

“I would have voted for him if he won the nomination,” says Harrington. “Going to war should be one of the last things humans do.”

Harrington decided to run for Senate for two reasons. The second, he says, is that “the executive branch is becoming exceedingly bloated and expanding its power.” And the first? “Tom Cotton.”

In a 2016 speech, Cotton insisted that America is actually suffering from “an under-incarceration problem.” The statement enraged Harrington. During an interview with Larry Sharpe, Harrington said he wanted to look Cotton in the face and challenge him on the statement.

“I think Tom Cotton is just placating people’s fears and uneducated proclivities. If he had a chance to walk in a penitentiary with any ounce of compassion, he would issue a public apology for a statement like that,” Harrington says.

If anyone is qualified to teach Cotton about the realities of the criminal justice system, it would be Harrington. Growing up, his father “scared him straight” with horror stories about the prison system. So when Harrington applied for a number of jobs after moving back to America from mission work in China, he was surprised that the only call back he received was for a position as a prison chaplain.

“I never thought I’d do something like this,” he says. “But it’s one of the best things I’ve ever done in my life.”

Harrington delivers death notifications, both to prisoners about their families and families about the prisoners. He was also tasked to be a chaplain for both the families of murder victims and families of death row inmates during executions.

He mentions the fight to posthumously test DNA evidence in the case of Ledell Lee, a death row inmate executed in 2017. The Innocence Project and the American Civil Liberties Union have filed a Freedom of Information Act suit to use DNA testing to see if Lee was innocent. If the DNA tests show that Arkansas killed an innocent man three years ago, Harrington says he will “vehemently oppose” the practice. As a chaplain for both the families of victims and the families of death row inmates, Harrington has seen how both sides are affected by capital punishment. “But,” he adds, “it’s hard to justify a system that executes an innocent person.”

Harrington has ideas about reforming other parts of the criminal justice system at the state and federal level, beginning with sentencing.

Harrington wants to change an Arkansas law that keeps prisoners who commit certain crimes ineligible for parole until they complete 70 percent of their sentence. Many of the crimes affected by this rule are violent, but it is also applied to such crimes as the manufacture and/or trafficking of methamphetamines. Harrington would like to see the end of mandatory minimums and the War on Drugs, the latter of which he says has “done more harm than good.”

“People shouldn’t be in prison where there is no victim,” he says. “They should deal with a doctor or a therapist, not be thrown in prison where they’re subject to gangs, abuse, sexual assault, or mental health issues.”

Here, Harrington turns to discussing the current protests against abusive policing. Just a week after returning to America from China, Harrington says, he was pulled over by aggressive officers in Sherwood, Arkansas. And encounters like Harrington’s are not uncommon.

“I’m thinking, ‘I just left a Communist country to come back to my own country and die,'” he says of the encounter.

Harrington’s children are autistic, so he worries each time he sees a story of poorly trained officers brutalizing or killing someone who is mentally handicapped (or their caretakers). He once worked as a takedown specialist at a psychiatric hospital, a job that primarily consisted of simply talking to patients when they seemed like they were about to become violent.

“I find myself perplexed that police officers can’t do the same thing.”

Harrington says he’s tired of hearing stories about no-knock raids and children being harmed by flash grenades. As he puts it, “You can’t sit here calling yourself pro-life while supporting babies being maimed over drugs.”

Ricky Dale Harrington Jr for US Senate
Ricky Dale Harrington Jr for US Senate/Facebook

Harrington’s other ideas include demilitarizing the police (“If police are using the equipment our fighting forces use to crush our enemies, what does that mean the police think about the people?”), better de-escalation techniques (“Every encounter does not need to end in violence or the threat of violence”), easing the burden on public defenders (“It’s hard to give someone a good fighting chance if they’re overloaded”), and promoting prison rehabilitation programs that offer inmates an education and teach basic life skills (“We want people to serve their time, get out, and never come back”).

Besides criminal justice reform, Harrington’s other major issue is health care. “My job is to try to remove government’s heavy hand in the system,” Harrington says. “We need health care revolution.”

In Harrington’s ideal health care system, communities and patients would have more power. He wants to remove regulatory hurdles like certificate-of-need requirements, which he says “keeps competition out” and “drives up cost.” He also rejects the idea that proposed top-down approaches like Medicare for All would lower the exorbitant health care costs passed on to patients.

Harrington worries that his opponent has his eyes on the White House, something that concerns him given Cotton’s history of authoritarian comments. “We need to stop someone who has said the things that he’s said.”

It took a lot of work to get Harrington on the ballot. “In 2019 the state legislature raised the petition signature requirement by nearly 270 percent,” Pakko reports. The party then “embarked on a petition campaign while simultaneously challenging the new higher threshold in federal court. With the help of an injunction that survived a state challenge in the 8th Circuit Court of Appeals, the Libertarian Party and Ricky Harrington will be on the ballot in November.”

Meanwhile, the pandemic has made it hard to campaign. Still, Harrington has grabbed every opportunity he has to talk with voters.

“I always try to find common ground with people. It’s just like evangelization,” he says. “If Libertarians spent a lot more time sharing the portions of libertarianism that people already agree with, we’d probably bring a lot more people to our movement and we’d put a dent in the two-party system.”

Reason reached out to Cotton’s campaign for its thoughts on its Libertarian challenger but did not receive a response.

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Tom Cotton’s Only Challenger Is a Black Libertarian Prison Chaplain

Ricky Dale Harrington, Jr.

Sen. Tom Cotton’s Democratic challenger, Josh Mahony, dropped out of the U.S. Senate race just hours after the filing deadline closed. Between this and Cotton’s comments over the past few weeks, which range from calling slavery a “necessary evil” to calling for military force in American streets, many Arkansas voters worry that the Republican incumbent is running unopposed.

Actually, there’s Ricky Dale Harrington, Jr.

There is an alternative to Tom Cotton,” reads a Tuesday headline from the Arkansas Times, reminding voters that Cotton’s race is not as uncontested as some people believe.

A Libertarian prison chaplain who hopes to be Arkansas’ first black senator, Harrington is indeed a unique candidate. The 34-year-old Pine Bluff resident is a husband and a father. He’s also the son of a corrections officer and a nurse, which he says is particularly fitting since his campaign’s main issues are criminal justice reform and health care reform.

And he’s running, in part, to keep Cotton out of the White House.

“The Libertarian Party of Arkansas is very enthusiastic about the campaign of Ricky Dale Harrington, Jr. to unseat Senator Tom Cotton,” says Michael Pakko, the Libertarian Party’s state chair. “It is rare to find a high-profile race like this featuring a two-way contest between a Libertarian and an incumbent. We intend to make the most of the publicity.

“Ricky is an exceptional candidate,” Pakko adds. “He is an ordained minister who has experienced life as a missionary overseas, giving him a worldview that is both expansive and nuanced. His experience as a counselor in the Arkansas prison system has given him a first-hand view of the problems of our criminal justice system, providing him with the initial motivation to run for office.”

Ricky Dale Harrington Jr for US Senate/Facebook
Ricky Dale Harrington Jr for US Senate/Facebook

Harrington was brought to libertarianism by Ron Paul’s 2008 campaign for the Republican presidential nomination. Paul’s non-interventionist stance on American foreign policy won him over, Harrington recalls.

“I would have voted for him if he won the nomination,” says Harrington. “Going to war should be one of the last things humans do.”

Harrington decided to run for Senate for two reasons. The second, he says, is that “the executive branch is becoming exceedingly bloated and expanding its power.” And the first? “Tom Cotton.”

In a 2016 speech, Cotton insisted that America is actually suffering from “an under-incarceration problem.” The statement enraged Harrington. During an interview with Larry Sharpe, Harrington said he wanted to look Cotton in the face and challenge him on the statement.

“I think Tom Cotton is just placating people’s fears and uneducated proclivities. If he had a chance to walk in a penitentiary with any ounce of compassion, he would issue a public apology for a statement like that,” Harrington says.

If anyone is qualified to teach Cotton about the realities of the criminal justice system, it would be Harrington. Growing up, his father “scared him straight” with horror stories about the prison system. So when Harrington applied for a number of jobs after moving back to America from mission work in China, he was surprised that the only call back he received was for a position as a prison chaplain.

“I never thought I’d do something like this,” he says. “But it’s one of the best things I’ve ever done in my life.”

Harrington delivers death notifications, both to prisoners about their families and families about the prisoners. He was also tasked to be a chaplain for both the families of murder victims and families of death row inmates during executions.

He mentions the fight to posthumously test DNA evidence in the case of Ledell Lee, a death row inmate executed in 2017. The Innocence Project and the American Civil Liberties Union have filed a Freedom of Information Act suit to use DNA testing to see if Lee was innocent. If the DNA tests show that Arkansas killed an innocent man three years ago, Harrington says he will “vehemently oppose” the practice. As a chaplain for both the families of victims and the families of death row inmates, Harrington has seen how both sides are affected by capital punishment. “But,” he adds, “it’s hard to justify a system that executes an innocent person.”

Harrington has ideas about reforming other parts of the criminal justice system at the state and federal level, beginning with sentencing.

Harrington wants to change an Arkansas law that keeps prisoners who commit certain crimes ineligible for parole until they complete 70 percent of their sentence. Many of the crimes affected by this rule are violent, but it is also applied to such crimes as the manufacture and/or trafficking of methamphetamines. Harrington would like to see the end of mandatory minimums and the War on Drugs, the latter of which he says has “done more harm than good.”

“People shouldn’t be in prison where there is no victim,” he says. “They should deal with a doctor or a therapist, not be thrown in prison where they’re subject to gangs, abuse, sexual assault, or mental health issues.”

Here, Harrington turns to discussing the current protests against abusive policing. Just a week after returning to America from China, Harrington says, he was pulled over by aggressive officers in Sherwood, Arkansas. And encounters like Harrington’s are not uncommon.

“I’m thinking, ‘I just left a Communist country to come back to my own country and die,'” he says of the encounter.

Harrington’s children are autistic, so he worries each time he sees a story of poorly trained officers brutalizing or killing someone who is mentally handicapped (or their caretakers). He once worked as a takedown specialist at a psychiatric hospital, a job that primarily consisted of simply talking to patients when they seemed like they were about to become violent.

“I find myself perplexed that police officers can’t do the same thing.”

Harrington says he’s tired of hearing stories about no-knock raids and children being harmed by flash grenades. As he puts it, “You can’t sit here calling yourself pro-life while supporting babies being maimed over drugs.”

Ricky Dale Harrington Jr for US Senate
Ricky Dale Harrington Jr for US Senate/Facebook

Harrington’s other ideas include demilitarizing the police (“If police are using the equipment our fighting forces use to crush our enemies, what does that mean the police think about the people?”), better de-escalation techniques (“Every encounter does not need to end in violence or the threat of violence”), easing the burden on public defenders (“It’s hard to give someone a good fighting chance if they’re overloaded”), and promoting prison rehabilitation programs that offer inmates an education and teach basic life skills (“We want people to serve their time, get out, and never come back”).

Besides criminal justice reform, Harrington’s other major issue is health care. “My job is to try to remove government’s heavy hand in the system,” Harrington says. “We need health care revolution.”

In Harrington’s ideal health care system, communities and patients would have more power. He wants to remove regulatory hurdles like certificate-of-need requirements, which he says “keeps competition out” and “drives up cost.” He also rejects the idea that proposed top-down approaches like Medicare for All would lower the exorbitant health care costs passed on to patients.

Harrington worries that his opponent has his eyes on the White House, something that concerns him given Cotton’s history of authoritarian comments. “We need to stop someone who has said the things that he’s said.”

It took a lot of work to get Harrington on the ballot. “In 2019 the state legislature raised the petition signature requirement by nearly 270 percent,” Pakko reports. The party then “embarked on a petition campaign while simultaneously challenging the new higher threshold in federal court. With the help of an injunction that survived a state challenge in the 8th Circuit Court of Appeals, the Libertarian Party and Ricky Harrington will be on the ballot in November.”

Meanwhile, the pandemic has made it hard to campaign. Still, Harrington has grabbed every opportunity he has to talk with voters.

“I always try to find common ground with people. It’s just like evangelization,” he says. “If Libertarians spent a lot more time sharing the portions of libertarianism that people already agree with, we’d probably bring a lot more people to our movement and we’d put a dent in the two-party system.”

Reason reached out to Cotton’s campaign for its thoughts on its Libertarian challenger but did not receive a response.

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Hundreds Of Angry Protesters Gather Outside Hamptons Billionaire Mansions To Demand Wealth Tax

Hundreds Of Angry Protesters Gather Outside Hamptons Billionaire Mansions To Demand Wealth Tax

Tyler Durden

Fri, 07/31/2020 – 16:25

Over 200 protesters wielding pitchforks marched through the Hamptons Thursday to demand that Governor Andrew Cuomo (D) slap billionaires with a wealth tax.

According to Business Insider, the group – organized by a coalition of activist groups including New York Communities for Change, a homeless advocacy organization, and News Guild (CWA) marched throughout the ultra-wealthy vacation town. Stops included the homes of several billionaires, including investor Daniel Loeb, real-estate developer Steven Roth and Hudson Yards developer Steven Ross – all Cuomo donors, according to the report (citing The Guardian).

The protesters were joined by State Senatorial candidate Jabari Brisport, who said outside of Loeb’s East Hampton mansion “If there is one thing that makes me more mad than billionaires, it’s billionaires like Dan Loeb that push and advocate for charter schools,” adding “I’m sick of the attacks on our public school children, and I’m sick of people like this donating to Andrew Cuomo so he can sit there in Albany twiddling his thumbs about how to deal with this budget deficit.”

The economic crisis brought on by the coronavirus crisis has strengthened calls for a wealth tax, especially in New York, where Rep. Alexandria Ocasio-Cortex has proposed a special state tax on the ultrawealthy. The proposal has the support of at least 83 ultrawealthy people, including Ben & Jerry’s cofounder Jerry Greenfield and Disney heiress Abigail Disney, who penned an open letter arguing that such a tax would “ensure we adequately fund our health systems, schools, and security … immediately. Substantially. Permanently.”

Cuomo shot down the idea, saying that it would drive New York’s 118 billionaires out of state. At the same time, the governor announced cuts to state funding for schools, public housing, and hospitals amid a budget crisis brought on by the coronavirus crisis, sparking protests. Thursday’s march was the second protest in the Hamptons featuring pitchforks this month. The pitchforks used in the July 1 event were plastic ones purchased from a Halloween store, Patch reported at the time. –Business Insider

Later in the march, protesters began beating drums and chanting “Oh the rent is too damn high,” a phrase coined by former New York mayoral candidate Jimmy McMillan over a decade ago.

“The governor has a choice: He can either cut funding from students, nurses, seniors, and working families who keep our city running — or he can tax the rich,” said event organizer Alicé Nascimento, who serves as the Director of Policy & Research at New York Communities for Change. “And he keeps choosing cuts over taxes — because he’d rather protect his wealthy billionaire donors than protect working New Yorkers.”

via ZeroHedge News https://ift.tt/3ghFAi7 Tyler Durden

Mission Accomplished: Fed Officially Blows The Biggest Ever Bubble

Mission Accomplished: Fed Officially Blows The Biggest Ever Bubble

Tyler Durden

Fri, 07/31/2020 – 16:00

Mission Accomplished:

Stocks managed gains on the month (4th month in a row) – Nasdaq best, Dow worst…

Source: Bloomberg

And note that despite the epic surge in the mega tech stocks overnight… Yes, that is AAPL up 10%!! (GOOGL -4%)…MSFT  managed to rally back to unch after rumors of it buying TikTok…

Apple is up $170BN today, more than the market cap of Oracle, more than the GDP of Hungary; Apple’s value increase today would be the 33rd biggest company in the S&P500.

Nasdaq was not a one-way street today as CNBC stunningly remarked “nasdaq has now gone negative which is quite interesting…”

And you have to laugh at this – The Dow scraped by today… as AAPL’s insane squeeze higher dominated the rest of the entire index…

Source: Bloomberg

but that will change when AAPL splits.

BUT, it was in currency, commodity, credit, and crypto land that the real fun and games took place.

Bonds were bid pretty much all month with the long-end notably outperforming…

Source: Bloomberg

… and pushing to new record low yields…

Source: Bloomberg

Some highlights:

  • 2Y Treasury yields fell for the 8th month in a row

  • 30Y Treasury yields fell for the 5th month this year

  • 2s30s Curve flattened by the most since August 2019

Source: Bloomberg

Still a long way down for stocks if bonds are right…

Source: Bloomberg

Gold and silver screamed higher on the month.

  • Silver’s best month since 1979 (when the Hunt Brothers tried to corner the market)

  • Gold’s best month since 2011

Spot Gold reached a new record above Sept 2011 and Futures topped $2000…

Source: Bloomberg

Silver’s at its highest since June 2013…

Source: Bloomberg

Oil’s up for the 3rd month in a row, but has largely trod water all month…

Source: Bloomberg

Cryptos soared in July with Ethereum best (up over 50%, its 4th monthly rise in a row) and Bitcoin up 22%…

Source: Bloomberg

Ethereum closed at its highest since August 2018…

Source: Bloomberg

And helping all these assets rise in value, DXY Dollar Index suffered its biggest monthly drop since 2010…

Source: Bloomberg

Breaking a key up-trend line…

Source: Bloomberg

Did Washington mess with the ‘money’ one too many times?

Gold seems to think so…

Source: Bloomberg

Finally, we note that ‘soft’ survey macro data has surged full of hope to a region that has not ended well in the recent past

Source: Bloomberg

Better keep pumping…

Source: Bloomberg

Remember, Diversify, Diversify, Diversify… oh wait!

h/t @Not_Jim_Cramer

We’ve seen this before…

h/t KesslerCompanies.com

Trade accordingly.

So – summing up July – Stocks up, Bonds up, Gold up, Silver up, Oil up, Crypto up, Dollar Down (along with Fed credibility.)

via ZeroHedge News https://ift.tt/2XdaosQ Tyler Durden