WTI Slides After Huge Crude Build, Record Production

WTI slid lower overnight amid signs of a sharp increase in U.S. crude inventories from API and concerns over the strength of economic growth in China, but rebounded back to pre-API level ahead of this morning’s official inventory data as the dollar tumbled.

Prices also slid as an attempted uprising against President Nicolas Maduro in OPEC member Venezuela appeared to fizzle.

“The market is currently witnessing the largest number of barrels subject to potential outage in many years, between Venezuela, Iran, Nigeria, Algeria and Libya,” said Leo Mariani, a KeyBanc Capital Markets Inc. analyst.

API

  • Crude +6.81 mm (+1.5mm exp)

  • Cushing +1.353mm

  • Gasoline -1.055mm (-1.5mm exp)

  • Distillates -2.058mm (-1mm exp)

DOE

  • Crude +9.93mm (+1.5mm exp) – highest since Nov 2018

  • Cushing +265k

  • Gasoline +917k (-1.5mm exp)

  • Distillates -1.307mm (-1mm exp)

US crude inventories rose for the 5th week in the last 6 with a 9.934mm build – the biggest since November. At the same time, the 10-week streak of draws in gasoline inventories is over as stocks rose 917k last week…

“Amid this host of bullish catalysts is one deepening pocket of weakness — U.S. oil stocks are swelling due to an upswing in crude inventories,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.

“Glum alarm bells are ringing louder in the U.S.”

US Crude production rose to a new record high, bucking the lower rig count trend…

Notably, February crude output was 11.68 million barrels a day in the latest monthly report released Tuesday. As Bloomberg notes, that’s quite a bit lower than the 12 million in the EIA’s weekly figures for the month.

After erasing the post-API drop. the machines started to lose control into the DOE print and after the major build, WTI prices slipped lower…

via ZeroHedge News http://bit.ly/2USQM99 Tyler Durden

Tesla’s ‘Dirty’ Little Earnings Secret: Pollution, Not Profits, Saved Musk

Authored by Wolf Richter via WolfStreet.com,

The surprise in the SEC 10-Q filing when no one was supposed to pay attention.

On April 29th, when no one was supposed to pay attention any longer, Tesla filed its quarterly report Form 10-Q with the SEC. Tesla had reported “earnings” on April 24, a doozie of a net loss of $702 million. But today, after the hoopla of its earnings report had died down, Tesla disclosed a slew of things that it hadn’t disclosed last week, including a record amount of sales of pollution credits.

Without those taxpayer-funded pollution credits that Tesla gets from the government and sells to other companies, its loss as automaker and solar-panel company would have been $918 million and its negative cash flow wouldn’t have been a cash drain of $919 million but a cash sinkhole of $1.14 billion

Tesla calls these taxpayer-funded pollution credits – part of the package of rich corporate welfare programs that Corporate America benefits from in numerous ways – “regulatory credits.”

The sales of these regulatory credits are booked as revenue, so they increase revenues by that amount. Since there are no costs associated with them, they also inflate by that amount gross profits, income from operations, net income, and cash flow. In other words, those taxpayer-funded credits are at the core of Tesla’s business model and flow straight from the top line all the way down to the bottom line.

Tesla discloses these “regulatory credits” – when it finally discloses them – in two categories:

  • Zero Emission Vehicle (ZEV) credits and

  • Non-ZEV regulatory credits.

On April 24, as I noted at the time, Tesla disclosed merely its $15 million in ZEV credits. But it kept its non-ZEV credits secret, and for a very good reason, with this kind of earnings chart:

On April 29th, in its 10-Q filing, it disclosed what was really going on with one sentence in a note discussing the composition of its revenues under the heading, “Automotive & Services and Other Segment” (I added the bold):

“Additionally, there was an increase of $170.6 million in sales of non-ZEV regulatory credits to $200.6 million in the three months ended March 31, 2019.”

Those regulatory credits in Q1 of $15 million in ZEV credits plus $200.6 million in non-ZEV credits amount to $215.6 million, or 4.8% of the Tesla’s revenues. These disclosures show to what extent it depends on the taxpayer for revenues, profits (well, lower losses), and cash flow.

Without those credits:

  • Gross profit wouldn’t have been $566 million but merely $350 million.

  • Net loss wouldn’t have been $702 million but $917.6 million, which would have been its largest loss ever by far.

  • Operating cash flow wouldn’t have been the whopper of a negative $919.5 million that it disclosed on April 24, but a negative $1.137 billion!

This is the reason Tesla doesn’t disclose these credits fully during its earnings release when the media might jump on it (possibly) but delays the disclosure until it files its quarterly 10-Q with the SEC usually the following week.

Without the revenues from selling those taxpayer-funded credits to other companies, Tesla’s operations as an automaker and a solar-panel maker would look a whole lot worse than they already do. And this comes on top of the enormous benefits Tesla still reaps from the now phasing-out taxpayer-funded credits that buyers of its vehicles obtain from the federal government and from some state governments.

The ruse that helped Tesla’s shares jump 20%. Read...  Tesla Reports Another Doozie

via ZeroHedge News http://bit.ly/2GTGBNY Tyler Durden

Victims of Communism Day 2019

Bones of tortured prisoners. Kolyma Gulag, USSR.

Today is May Day. Since 2007, I have advocated using this date as an international Victims of Communism Day. I outlined the rationale for this proposal (which was not my original idea) in my very first post on the subject:

May Day began as a holiday for socialists and labor union activists, not just communists. But over time, the date was taken over by the Soviet Union and other communist regimes and used as a propaganda tool to prop up their [authority]. I suggest that we instead use it as a day to commemorate those regimes’ millions of victims. The authoritative Black Book of Communism estimates the total at 80 to 100 million dead, greater than that caused by all other twentieth century tyrannies combined. We appropriately have a Holocaust Memorial Day. It is equally appropriate to commemorate the victims of the twentieth century’s other great totalitarian tyranny. And May Day is the most fitting day to do so….

Our comparative neglect of communist crimes has serious costs. Victims of Communism Day can serve the dual purpose of appropriately commemorating the millions of victims, and diminishing the likelihood that such atrocities will recur. Just as Holocaust Memorial Day and other similar events promote awareness of the dangers of racism, anti-Semitism, and radical nationalism, so Victims of Communism Day can increase awareness of the dangers of left-wing forms of totalitarianism, and government domination of the economy and civil society.

While communism is most closely associated with Russia, where the first communist regime was established, it had equally horrendous effects in other nations around the world. The highest death toll for a communist regime was not in Russia, but in China. Mao Zedong’s Great Leap Forward was likely the biggest episode of mass murder in the entire history of the world.

November 7, 2017 was the 100th anniversary of the Bolshevik seizure of power in Russia, which led to the establishment of the first-ever communist regime. On that day, I put up a post outlining some of the lessons to be learned from a century of experience with communism.  The post explains why most of the horrors perpetrated by communist regimes were intrinsic elements of the system. For the most part, they cannot be ascribed to circumstantial factors, such as flawed individual leaders, peculiarities of Russian and Chinese culture, or the absence of democracy. The latter probably did make the situation worse than it might have been otherwise. But, for reasons I explained in the same post, some form of dictatorship or oligarchy is probably inevitable in a socialist economic system in which the government controls all or nearly all of the economy.

While the influence of communist ideology has declined since its mid-twentieth century peak, it is far from dead. Largely unreformed communist regimes remain in power in Cuba and North Korea. In Venezuela, the Marxist government’s socialist policies have resulted in political repression, the starvation of children, and a massive refugee crisis—the biggest in the history of the Western hemisphere. The regime continues to hold on to power by means of repression, despite growing international and domestic opposition. The struggle for freedom in Venezuela is continues even as I write these words.

In Russia, the authoritarian regime of former KGB Colonel Vladimir Putin has embarked on a wholesale whitewashing of communism’s historical record. In China, the Communist Party remains in power (albeit after having abandoned many of its previous socialist economic polcies), and has recently become less tolerant of criticism of the mass murders of the Mao era (part of a more general turn towards greater repression). In the West, only a small minority advocates communism. But many more tend to downplay its evils, or are simply unaware of them.

In a 2012 post, I explained why May 1 is a better date for Victims of Communism Day than the available alternatives, such as November 7 (the anniversary of the Bolshevik seizure of power in Russia) and August 23 (the anniversary of the Nazi-Soviet Pact). I also addressed various possible objections to using May Day, including claims that the date should be reserved for the celebration of labor unions.

But, as explained in my 2013 Victims of Communism Day post, I would be happy to support a different date if it turns out to be easier to build a consensus around it. If another date is chosen, I would prefer November 7; not out of any desire to diminish the significance of communist atrocities in other nations, but because it marks the establishment of the very first communist regime. But I am more than willing to endorse almost any other date that could command broad support. Unless and until that happens, however, May 1 will continue to be Victims of Communism Day at the Volokh Conspiracy.

NOTE: Much of this post is adapted from last year’s Victims of Communism Day post.

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Victims of Communism Day 2019

Bones of tortured prisoners. Kolyma Gulag, USSR.

Today is May Day. Since 2007, I have advocated using this date as an international Victims of Communism Day. I outlined the rationale for this proposal (which was not my original idea) in my very first post on the subject:

May Day began as a holiday for socialists and labor union activists, not just communists. But over time, the date was taken over by the Soviet Union and other communist regimes and used as a propaganda tool to prop up their [authority]. I suggest that we instead use it as a day to commemorate those regimes’ millions of victims. The authoritative Black Book of Communism estimates the total at 80 to 100 million dead, greater than that caused by all other twentieth century tyrannies combined. We appropriately have a Holocaust Memorial Day. It is equally appropriate to commemorate the victims of the twentieth century’s other great totalitarian tyranny. And May Day is the most fitting day to do so….

Our comparative neglect of communist crimes has serious costs. Victims of Communism Day can serve the dual purpose of appropriately commemorating the millions of victims, and diminishing the likelihood that such atrocities will recur. Just as Holocaust Memorial Day and other similar events promote awareness of the dangers of racism, anti-Semitism, and radical nationalism, so Victims of Communism Day can increase awareness of the dangers of left-wing forms of totalitarianism, and government domination of the economy and civil society.

While communism is most closely associated with Russia, where the first communist regime was established, it had equally horrendous effects in other nations around the world. The highest death toll for a communist regime was not in Russia, but in China. Mao Zedong’s Great Leap Forward was likely the biggest episode of mass murder in the entire history of the world.

November 7, 2017 was the 100th anniversary of the Bolshevik seizure of power in Russia, which led to the establishment of the first-ever communist regime. On that day, I put up a post outlining some of the lessons to be learned from a century of experience with communism.  The post explains why most of the horrors perpetrated by communist regimes were intrinsic elements of the system. For the most part, they cannot be ascribed to circumstantial factors, such as flawed individual leaders, peculiarities of Russian and Chinese culture, or the absence of democracy. The latter probably did make the situation worse than it might have been otherwise. But, for reasons I explained in the same post, some form of dictatorship or oligarchy is probably inevitable in a socialist economic system in which the government controls all or nearly all of the economy.

While the influence of communist ideology has declined since its mid-twentieth century peak, it is far from dead. Largely unreformed communist regimes remain in power in Cuba and North Korea. In Venezuela, the Marxist government’s socialist policies have resulted in political repression, the starvation of children, and a massive refugee crisis—the biggest in the history of the Western hemisphere. The regime continues to hold on to power by means of repression, despite growing international and domestic opposition. The struggle for freedom in Venezuela is continues even as I write these words.

In Russia, the authoritarian regime of former KGB Colonel Vladimir Putin has embarked on a wholesale whitewashing of communism’s historical record. In China, the Communist Party remains in power (albeit after having abandoned many of its previous socialist economic polcies), and has recently become less tolerant of criticism of the mass murders of the Mao era (part of a more general turn towards greater repression). In the West, only a small minority advocates communism. But many more tend to downplay its evils, or are simply unaware of them.

In a 2012 post, I explained why May 1 is a better date for Victims of Communism Day than the available alternatives, such as November 7 (the anniversary of the Bolshevik seizure of power in Russia) and August 23 (the anniversary of the Nazi-Soviet Pact). I also addressed various possible objections to using May Day, including claims that the date should be reserved for the celebration of labor unions.

But, as explained in my 2013 Victims of Communism Day post, I would be happy to support a different date if it turns out to be easier to build a consensus around it. If another date is chosen, I would prefer November 7; not out of any desire to diminish the significance of communist atrocities in other nations, but because it marks the establishment of the very first communist regime. But I am more than willing to endorse almost any other date that could command broad support. Unless and until that happens, however, May 1 will continue to be Victims of Communism Day at the Volokh Conspiracy.

NOTE: Much of this post is adapted from last year’s Victims of Communism Day post.

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Julian Assange Sentenced to 50 Weeks in U.K. Prison for Skipping Bail

WikiLeaks founder Julian Assange was hit with a 50-week prison sentence in a British court on Wednesday for jumping bail.

In 2012, Assange faced allegations of sexual assault, with Sweden requesting he be extradited to that country. As a result, Assange successfully sought refuge at the Ecuadorian Embassy in London, where he stayed until Ecuadorian officials got tired of harboring him and revoked his asylum last month. British police quickly took him into custody.

“By entering the embassy, you deliberately put yourself out of reach, whilst remaining in the U.K.,” Judge Deborah Taylor said in court Wednesday, according to Sky News. “You remained there for nearly seven years, exploiting your privileged position to flout the law and advertise internationally your disdain for the law of this country.” His stay in the Ecuadorian Embassy cost British taxpayers 16 million pounds (about $21 million), Taylor said, as police had to continuously monitor the building until last month. “It’s difficult to envisage a more serious example of this offense,” Taylor said.

Swedish prosecutors have since dropped the assault charges against Assange. But as The New York Times notes, it’s possible they could reopen the case now that he’s no longer confined to the Ecuadorian Embassy. Assange’s efforts to seek asylum “undoubtedly affected the progress of the Swedish proceedings” regarding the sexual assault allegations, Taylor said, according to The Washington Post.

But to hear Assange’s attorney tell it, the whistleblower skipped out on his bail because he didn’t want to be extradited to the U.S. The WikiLeaks founder is perhaps most well-known for publishing hundreds of thousands of classified documents about the U.S. wars in Iraq and Afghanistan. He’s also been accused of working with the Russian government to release thousands of Democratic National Committee emails prior to the 2016 presidential election.

Assange “was living with overwhelming fear of being rendered to the U.S.,” his lawyer, Mark Summers, told the court, the Associated Press reported. Assange was worried U.S. authorities might send him to the Guantanamo Bay detention camp, which is normally reserved for terrorists, Summers said.

In a letter that Summers read to the court, Assange expressed regret for some of his actions. “I apologized unreservedly to those who consider that I have disrespected them by the way I have pursued my case,” he wrote, per the BBC.

“I did what I thought at the time was the best and perhaps the only thing that could be done—which I hoped might lead to a legal resolution being reached between Ecuador and Sweden that would protect me from the worst of my fears,” the letter added. “I regret the course that this took; the difficulties were instead compounded and impacted upon very many others.”

But Taylor wasn’t buying it. “Whilst you may have had fears as to what may happen to you, nonetheless you had a choice, and the course of action you chose was to commit this offense,” she said.

So what comes next for Assange? On Thursday, he’ll be in court again. This hearing could determine whether he’s extradited to the U.S., where federal prosecutors have charged him with helping to crack a password stored on government computers in order to access classified information back in 2010.

The organization Assange founded, meanwhile, doesn’t think he’s getting a fair shake. “Julian Assange’s sentence is as shocking as it is vindictive,” the group wrote on Twitter following his sentence. “We have grave concerns as to whether he will receive a fair extradition hearing in the UK.”

For more Reason coverage of Julian Assange, you can click here.

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Julian Assange Sentenced to 50 Weeks in U.K. Prison for Skipping Bail

WikiLeaks founder Julian Assange was hit with a 50-week prison sentence in a British court on Wednesday for jumping bail.

In 2012, Assange faced allegations of sexual assault, with Sweden requesting he be extradited to that country. As a result, Assange successfully sought refuge at the Ecuadorian Embassy in London, where he stayed until Ecuadorian officials got tired of harboring him and revoked his asylum last month. British police quickly took him into custody.

“By entering the embassy, you deliberately put yourself out of reach, whilst remaining in the U.K.,” Judge Deborah Taylor said in court Wednesday, according to Sky News. “You remained there for nearly seven years, exploiting your privileged position to flout the law and advertise internationally your disdain for the law of this country.” His stay in the Ecuadorian Embassy cost British taxpayers 16 million pounds (about $21 million), Taylor said, as police had to continuously monitor the building until last month. “It’s difficult to envisage a more serious example of this offense,” Taylor said.

Swedish prosecutors have since dropped the assault charges against Assange. But as The New York Times notes, it’s possible they could reopen the case now that he’s no longer confined to the Ecuadorian Embassy. Assange’s efforts to seek asylum “undoubtedly affected the progress of the Swedish proceedings” regarding the sexual assault allegations, Taylor said, according to The Washington Post.

But to hear Assange’s attorney tell it, the whistleblower skipped out on his bail because he didn’t want to be extradited to the U.S. The WikiLeaks founder is perhaps most well-known for publishing hundreds of thousands of classified documents about the U.S. wars in Iraq and Afghanistan. He’s also been accused of working with the Russian government to release thousands of Democratic National Committee emails prior to the 2016 presidential election.

Assange “was living with overwhelming fear of being rendered to the U.S.,” his lawyer, Mark Summers, told the court, the Associated Press reported. Assange was worried U.S. authorities might send him to the Guantanamo Bay detention camp, which is normally reserved for terrorists, Summers said.

In a letter that Summers read to the court, Assange expressed regret for some of his actions. “I apologized unreservedly to those who consider that I have disrespected them by the way I have pursued my case,” he wrote, per the BBC.

“I did what I thought at the time was the best and perhaps the only thing that could be done—which I hoped might lead to a legal resolution being reached between Ecuador and Sweden that would protect me from the worst of my fears,” the letter added. “I regret the course that this took; the difficulties were instead compounded and impacted upon very many others.”

But Taylor wasn’t buying it. “Whilst you may have had fears as to what may happen to you, nonetheless you had a choice, and the course of action you chose was to commit this offense,” she said.

So what comes next for Assange? On Thursday, he’ll be in court again. This hearing could determine whether he’s extradited to the U.S., where federal prosecutors have charged him with helping to crack a password stored on government computers in order to access classified information back in 2010.

The organization Assange founded, meanwhile, doesn’t think he’s getting a fair shake. “Julian Assange’s sentence is as shocking as it is vindictive,” the group wrote on Twitter following his sentence. “We have grave concerns as to whether he will receive a fair extradition hearing in the UK.”

For more Reason coverage of Julian Assange, you can click here.

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ISM Plunges To Oct 2016 Lows As US “Manufacturers Seem Sceptical That Demand Will Persist”

Following Canada’s Manufacturing PMI plunge into contraction in April, Markit reported US Manufacturing saw a very modest rebound in April (from 52.4 to 52.6) despite the slowest growth in employment in two years.

ISM was considerably worse, plunging to its weakest since October 2016

The gauge for export orders fell below 50 for the first time in three years while imports missed the threshold for the first time in two years, the latest evidence President Donald Trump’s trade wars are weighing on factories.

The measure for new orders also slipped to near the weakest since 2016, indicating softer demand. At the same time, the inventoriesgauge increased, suggesting stockpiles continue to expand, a trend that will likely eventually reverse and be a drag on growth.

ISM’s employment gauge fell to near a two-year low, signaling weakness ahead of Friday’s U.S. jobs report.

The index of prices paid dropped to 50, a signal that inflation pressures are likely to remain muted.

Chris Williamson, Chief Business Economist at IHS Markit said:

“Although the PMI ticked higher in April, the survey remains consistent with manufacturing acting as a drag on the economy at the start of the second quarter, albeit with the rate of contraction easing. Historical comparisons indicate that the survey’s output gauge needs to rise above 53.5 to signal growth of factory production. As such, the data add to signs that the economy looks set to slow after the stronger than expected start to the year.

Employment growth also disappointed as hiring slipped to the lowest for nearly two years, albeit in part due to firms reporting difficulties finding staff amid the current tight labour market.

“There was better news on the order book front, however, with inflows of new business rising and firms signalling an improved export performance. Unfortunately, on balance, manufacturers seem sceptical that the rise in demand will persist, with future expectations of output growth slumping lower in April.

“Both input cost and factory gate price inflation rates meanwhile eased further, down to the lowest for over one and a half years, hinting that consumer price inflation rates will have continued to cool in April.”

So, probably best for Jay Powell to ignore the hard data and focus on the weak surveys to provide cover for his dovishness.

via ZeroHedge News http://bit.ly/2GP0eFK Tyler Durden

Watch Live: AG Barr Testifies Before Senate As Dems Demand He Resign Over ‘Mueller Letter’

Last night’s deep-state ‘leak’ of a letter penned by Robert Mueller to AG (and longtime friend and colleague) William Barr complaining that Barr’s summary of Mueller’s findings, released several weeks before the redacted report, didn’t capture the full “context, nature and substance” of the report was of course conveniently timed to hand Democrats plenty of ammunition to tear into Barr during Wednesday morning’s hearing before the Senate Judiciary Committee.

(Of course, as we’ve pointed out, when Barr pressed Mueller about whether Barr’s summary was inaccurate, the special counsel demurred, and affirmed that he didn’t think it was. Mueller’s letter was reportedly dated March 27. Barr released the summary on March 24.)

But the fact Barr insisted during back-to-back Congressional testimony on April 9 & April 10 that he didn’t know where the special counsel stood regarding the AG’s characterization of the report has already prompted some Democratic senators to demand Barr’s resignation, per the Washington Post.

Chris Van Hollen, the Senator who asked Barr about what he knew about Mueller’s feelings about the summary, demanded Barr resign and once again accused him of being a ‘propaganda chief’ for the president.

He labeled his position “the most recent example of the attorney general acting as the chief propagandist for the Trump administration instead of answering questions in a straightforward and objective manner.”

In a prepared statement for the committee, Barr defended his handling of the special counsel’s investigation.

“As Attorney General, I serve as the chief law-enforcement officer of the United States, and it is my responsibility to ensure that the Department carries out its law-enforcement functions appropriately. The Special Counsel’s investigation was no exception.”

Pelosi seized on the reports about the Mueller letter to demand that Barr release the full Mueller report and all the underlying docs that the Demos have subpoenaed.

House Judiciary Chairman Jerry Nadler demanded that Barr appear before the House Judiciary Committee on Thursday for another hearing, as the Dems have requested.

And Chuck Schumer demanded that Barr bring the full Mueller letter with him to Wednesday’s hearing, and also demanded that Mueller appear before Congress to testify.

The Dems lapdogs in the press have also piled on, with CNN’s Chris Cilizza warning that “William Barr is in deep trouble” in an editorial published Wednesday morning shortly before the hearing was set to begin.

With all the drama, Wednesday’s hearing is bound to be a lively one. Watch live below:

And Read Barr’s prepared remarks below:

AG Barr Written Statement for the Record to Senate Judiciary by Zerohedge on Scribd

via ZeroHedge News http://bit.ly/2Y25zQZ Tyler Durden

Robert Mueller Told William Barr His Memo to Congress on Collusion, Obstruction Lacked Context: Reason Roundup

Dissatisfied with media coverage of the results of his investigation into possible collusion between the Trump campaign and the Russian government, Special Counsel Robert Mueller wrote a letter to Attorney General William Barr in late March expressing frustration that Barr’s four-page memo to Congress summarizing Mueller’s findings “did not fully capture [their] context, nature, and substance.”

That’s according to The Washington Post, which obtained a copy of the letter on Tuesday. The Post did not publish the letter in full, which means we are relying here on their interpretation of a letter that supposedly complains about Barr’s interpretation of Mueller’s report. From The Post:

The letter and a subsequent phone call between the two men reveal the degree to which the longtime colleagues and friends disagreed as they handled the legally and politically fraught task of investigating the president. Democrats in Congress are likely to scrutinize Mueller’s complaints to Barr as they contemplate the prospect of opening impeachment proceedings and mull how hard to press for Mueller himself to testify publicly.

At the time Mueller’s letter was sent to Barr on March 27, Barr had days prior announced that Mueller did not find a conspiracy between the Trump campaign and Russian officials seeking to interfere in the 2016 presidential election. In his memo to Congress, Barr also said that Mueller had not reached a conclusion about whether Trump had tried to obstruct justice, but that Barr reviewed the evidence and found it insufficient to support such a charge.

Days after Barr’s announcement, Mueller wrote the previously undisclosed private letter to the Justice Department, laying out his concerns in stark terms that shocked senior Justice Department officials, according to people familiar with the discussions.

“The summary letter the Department sent to Congress and released to the public late in the afternoon of March 24 did not fully capture the context, nature, and substance of this office’s work and conclusions,” Mueller wrote. “There is now public confusion about critical aspects of the results of our investigation. This threatens to undermine a central purpose for which the Department appointed the Special Counsel: to assure full public confidence in the outcome of the investigations.”

According to The Post, the two men talked on the phone after Barr received the letter, and this conversation was friendlier in nature.

Barr is scheduled to testify before the Senate Judiciary Committee on Wednesday and the House Judiciary Committee on Thursday. Barr previously testified that he didn’t know whether Mueller supported his conclusions.

FREE MINDS

“Camille Paglia should be removed from UArts faculty and replaced by a queer person of color,” reads a recent student-created petition calling for the firing of the legendary art critic whose views on gender and sex have occasionally offended the modern progressive left. “UArts: you are disrespecting your students and putting them in danger. Do better.”

This is hardly the first time Paglia has endured such calls. When her first book, Sexual Personae, was published in 1990, faculty members at Connecticut College compared it to Mein Kampf. At the time, it was intellectually curious students who defended the book.

Now the situation is largely reversed, notes The Atlantic‘s Conor Friedersdorf.

FREE MARKETS

The situation in Venezuela may be reaching a climax: Embattled dictator Nicolas Maduro had plans to flee the country but was convinced by Russian forces to stay, U.S. Secretary of State Mike Pompeo claimed on Tuesday. Maduro disputes this. According to NPR:

U.S. officials have been characterizing the situation in Venezuela as nearing its endgame, and opposition leader Juan Guaidó called for the “final phase” of the uprising Tuesday in his attempt to remove Maduro from power. But Venezuela’s military handily stamped out pockets of resistance, and despite word from American officials that key Maduro allies are abandoning him, the country’s defense minister proclaimed his continuing loyalty. More than 50 countries support Guaidó’s claim to power.

QUICK HITS

  • Islamic State leader Abu Bakr al-Baghdadi has appeared on video for the first time since 2014. The self-proclaimed caliph acknowledged ISIS’s loss of territory in Iraq and Syria but promised “there will be more to come after this battle.”
  • Japan has a new emperor.
  • Plymouth State University must pay $350,000 to an adjunct professor it fired for testifying in defense of a woman facing sexual assault charges.
  • Jacob Wohl’s brilliant political strategy, in his own words: “make shit up.”
  • Arizona Gov. Doug Ducey (R) accused of violating the separation of church and state with “He is Risen” Easter post.
  • The trailer for the upcoming Sonic the Hedgehog movie is the stuff of nightmares.

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Robert Mueller Told William Barr His Memo to Congress on Collusion, Obstruction Lacked Context: Reason Roundup

Dissatisfied with media coverage of the results of his investigation into possible collusion between the Trump campaign and the Russian government, Special Counsel Robert Mueller wrote a letter to Attorney General William Barr in late March expressing frustration that Barr’s four-page memo to Congress summarizing Mueller’s findings “did not fully capture [their] context, nature, and substance.”

That’s according to The Washington Post, which obtained a copy of the letter on Tuesday. The Post did not publish the letter in full, which means we are relying here on their interpretation of a letter that supposedly complains about Barr’s interpretation of Mueller’s report. From The Post:

The letter and a subsequent phone call between the two men reveal the degree to which the longtime colleagues and friends disagreed as they handled the legally and politically fraught task of investigating the president. Democrats in Congress are likely to scrutinize Mueller’s complaints to Barr as they contemplate the prospect of opening impeachment proceedings and mull how hard to press for Mueller himself to testify publicly.

At the time Mueller’s letter was sent to Barr on March 27, Barr had days prior announced that Mueller did not find a conspiracy between the Trump campaign and Russian officials seeking to interfere in the 2016 presidential election. In his memo to Congress, Barr also said that Mueller had not reached a conclusion about whether Trump had tried to obstruct justice, but that Barr reviewed the evidence and found it insufficient to support such a charge.

Days after Barr’s announcement, Mueller wrote the previously undisclosed private letter to the Justice Department, laying out his concerns in stark terms that shocked senior Justice Department officials, according to people familiar with the discussions.

“The summary letter the Department sent to Congress and released to the public late in the afternoon of March 24 did not fully capture the context, nature, and substance of this office’s work and conclusions,” Mueller wrote. “There is now public confusion about critical aspects of the results of our investigation. This threatens to undermine a central purpose for which the Department appointed the Special Counsel: to assure full public confidence in the outcome of the investigations.”

According to The Post, the two men talked on the phone after Barr received the letter, and this conversation was friendlier in nature.

Barr is scheduled to testify before the Senate Judiciary Committee on Wednesday and the House Judiciary Committee on Thursday. Barr previously testified that he didn’t know whether Mueller supported his conclusions.

FREE MINDS

“Camille Paglia should be removed from UArts faculty and replaced by a queer person of color,” reads a recent student-created petition calling for the firing of the legendary art critic whose views on gender and sex have occasionally offended the modern progressive left. “UArts: you are disrespecting your students and putting them in danger. Do better.”

This is hardly the first time Paglia has endured such calls. When her first book, Sexual Personae, was published in 1990, faculty members at Connecticut College compared it to Mein Kampf. At the time, it was intellectually curious students who defended the book.

Now the situation is largely reversed, notes The Atlantic‘s Conor Friedersdorf.

FREE MARKETS

The situation in Venezuela may be reaching a climax: Embattled dictator Nicolas Maduro had plans to flee the country but was convinced by Russian forces to stay, U.S. Secretary of State Mike Pompeo claimed on Tuesday. Maduro disputes this. According to NPR:

U.S. officials have been characterizing the situation in Venezuela as nearing its endgame, and opposition leader Juan Guaidó called for the “final phase” of the uprising Tuesday in his attempt to remove Maduro from power. But Venezuela’s military handily stamped out pockets of resistance, and despite word from American officials that key Maduro allies are abandoning him, the country’s defense minister proclaimed his continuing loyalty. More than 50 countries support Guaidó’s claim to power.

QUICK HITS

  • Islamic State leader Abu Bakr al-Baghdadi has appeared on video for the first time since 2014. The self-proclaimed caliph acknowledged ISIS’s loss of territory in Iraq and Syria but promised “there will be more to come after this battle.”
  • Japan has a new emperor.
  • Plymouth State University must pay $350,000 to an adjunct professor it fired for testifying in defense of a woman facing sexual assault charges.
  • Jacob Wohl’s brilliant political strategy, in his own words: “make shit up.”
  • Arizona Gov. Doug Ducey (R) accused of violating the separation of church and state with “He is Risen” Easter post.
  • The trailer for the upcoming Sonic the Hedgehog movie is the stuff of nightmares.

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