Federal Agents Beat Retiree at Border Crossing, Claim His Wounds Were ‘Self-Inflicted’

Larry KirschenmanYesterday, I
highlighted the case of
Clarisa Christiansen
, who was rousted by roving Border Patrol
agents on a road well within the United States and left stranded
after they slashed her tire.

But good, old-fashioned border crossings are a great place to
get roughed up by federal employees, too. Larry Kirschenman, a
75-year-old Vietnam Veteran and retiree living in a border
community, who was in the habit of heading to Mexico “to get
haircuts or dental work, or sometimes just for lunch” (Mexico is a

popular destination for affordably dentistry
), was pulled over
at the Nogales port of entry. He ended up in the hospital.

That’s him pictured above right, holding photos from the
hospital of his injuries.

At the American Civil Liberties Union blog, he
tells his story
:

When I got to the border crossing where customs officers checked
my passport, I was told to pull over into what’s called secondary –
a parking area where they search vehicles for contraband. The agent
there took my keys and in a gruff voice ordered me to get out of my
truck, put my hands on the vehicle, and said he was going to search
me. I did exactly as he said, then turned and asked him, in a calm
and polite voice, whether he needed some kind of probable cause to
search me. He answered “No I don’t!” Then he grabbed me in an arm
lock, slammed a pair of handcuffs down on my wrists hard enough to
split the skin, and pushed my wrists up behind my neck so far that
my shoulders started to go out of joint. It hurt so badly I started
screaming “Please stop, please stop, you’re hurting me.” I wasn’t
resisting at all, but he just kept on while I cried out in
pain.

Larry KirschenmanNext the
officer marched me to a holding cell. There he picked me up by the
seat of my pants and slammed my head onto the tile floor. I blacked
out for a moment, then I woke up with a head wound that had peeled
a chunk of skin off the top of my head. I was still bleeding when
an officer handcuffed me to the side of a bench so tightly that I
couldn’t even stand up. And they kept on questioning me, “Why do
you come here so often? What are you doing over there?

Unshockingly, Kirschenman started having chest pains. The agents
agreed to call on ambulance, “but only if I agreed to pay the
hospital bill, which I did.”

According to him, the ER doc called the police, in fury over the
injuries inflicted by the Border Patrol agents.

In a release at the time of the incident, Customs and Border
Protection insisted that Kirschenman’s lacerations were “self-inflicted
injuries
” which he sustained after becoming combative. He must
have thrown himself against the agents’ batons, over and over
again. 

The stop, claim the feds, was actually because of an outstanding
California warrant which turned out to be “non-extraditable and no
further charges are pending.” Well, that’s nice.

Kirschenman is still trying to get the Border Patrol to
surrender survellance footage of the incident. Below is a video
presentation of his story.

The ACLU filed a
lawsuit Monday to force the federal government to be more
forthcoming
about its agents’ conduct along border.

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Mediate: ‘Here Are the Best Moments from Hannity’s Clownshow Weed Panel’

I'm in there somewhere. |||Last Friday,
April 25
, I was one of 20 or so townhall-audience panelists on
a special episode of Hannity titled “Stoned in America.” As
mentioned in this space
last week
,

I am a vocal part of the
outnumbered legalize-it caucus. I don’t know how
the thing will play on television, but it was a pretty amazing
exchange in the room, and I suspect that Hit & Run readers
might find it of interest….

Well, Andrew Kirell of Mediaite found it of interest,
and wrote a clip-heavy post titled “Here
Are the Best Moments from Hannity’s Clownshow Weed Panel
.”
Here’s one section and clip that involves me:

Unlike the majority of videos here, which fall under “so bad
it’s good” categorization, this clip
is actually good. Vice co-founder Gavin
McInnes
 started off by talking about his own
recreational drug use and how he doesn’t want the government
telling anyone what they can and cannot put in their body.

The panel’s designated “Hollywood reporter,” however, claimed
it’s government’s job to foster a “role model”-based society that
shuns drug use (she also had a bizarre aside about Obama’s
affiliation with former coke dealer Jay Z);
and a former Miss America concurred on that point.

Enter a visibly
frustrated Reason editor-in-chief Matt
Welch
 who derailed the segment (in a good way) by
triumphantly scolding the panel: “But by locking them up in human
cages for what they choose to put in their bodies, what kind of
culture is that? Did you listen to the cop about what he did on the
streets when he tried to enforce this? That
is not moral, that
is not conservative.”

That last bit is contained in this YouTube excerpt:

More clips and commentary at
Mediaite
.

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Pop QEez: Guess The Number Of Words In Today’s FOMC Statement

In addition to the relentless growth in the Fed’s balance sheet, elsewhere also known as the S&P 500, one of the persistent trends over the past five years has been the exponential surge in Fed “messaging complexity” shown most clearly by the rising (and currently record) number of words in each and every FOMC statement.

This trend, which curiously mirrors the rise in Fed assets is shown most clearly on the chart below courtesy of @Not_Jim_Cramer.

Zooming in on just the the last two years, one can see how much more convoluted the Fed’s message has become, as its statement has more than doubled in size from 420 words to the current record of 877 words.

 

So for today’s Pop QEez: will today’s Fed statement, due out in less than two hours, become a new record of over 877 words, or will the Fed finally begin tapering, not only of its bond purchases, but of the confused message it is trying to send to HFT algos and whatever carbon-based traders are left?




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Presenting Russian East Ukraine: These Are The Cities Controlled By “Separatists”

Vladimir Putin ‘confirmed’ yesterday that there were no Russian forces ‘boots on the ground’ in Ukraine and so it seems the daily growing list of cities that are falling to pro-Russian separatist forces throughout Eastern Ukraine – as the following chart shows – suggests an ever more divided nation is verging on civil war, despite the best efforts of the West to sanction their way to a fix. As Turchinov warned this morning, there is “real danger of the Russian Federation beginning a land war against Ukraine… our armed forces are on full military readiness.”

 

 

Source: AFP

As Reuters reports,

Ukraine’s armed forces are on full military alert in case of a Russian invasion, the country’s acting president said on Wednesday, reiterating concern over Russian troops massed on the border.

 

“I once again return to the real danger of the Russian Federation beginning a land war against Ukraine,” Oleksander Turchinov told a meeting of regional governors in Kiev, Interfax-Ukraine reported.

 

“Our armed forces have been put on full military readiness,” he said.

 

Russia says it has no plan to invade eastern Ukraine following its annexation of the Crimean peninsula in March, but Turchinov’s remark made clear the pro-Western government in Kiev saw no reason to reduce the readiness of its armed forces.

 

Kiev, however, accuses Moscow of orchestrating an armed uprising in the industrial east by Russian-speaking separatists who have seized government buildings in a strong of towns and cities, largely unopposed by police.

Given NATO’s moves we charted here, and the map above, we could not help but find the following statement somewhat ironic…

  • RUSSIA’S PUTIN, ITALY’S PM DISCUSS UKRAINE ON THE PHONE, URGE ALL SIDES TO STICK TO GENEVA DEAL ON DE-ESCALATING CRISIS – INTERFAX CITES KREMLIN

Nothing to see here.

And in the latest news… another city just fell…




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Deja Vu All Over Again: Fannie, Freddie Would Need Another $190 Billion Bailout When Things Go South

While it will come as a surprise to exactly nobody, certainly nobody who understand that the US financial system is no better financial shape than just before the Lehman crash as nothing has been fixed and everything that is broken has been merely swept under the rug (for details see Paul Singer’s explanation posted last night) of epic-er leverage, the news that when (not if) the US economy succumbs to a severe economic downturn Fannie and Freddie would require another taxpayer funded bailout, one of $190 billion or even more than the first $187.5 billion-funded nationalization of the GSEs, can only bring a smile to one’s face.

A smile because according to some idiots, the GSEs are viable, standalone enterprises whose “net income” should be given on a silver platter to institutional investors who will then make a killing courtesy of what were years and years of government liquidity injections. Sure, do that. Just answer this: will those same investors who demand full ownership rights also put up the hundreds of billions of capital that will be needed when the next bailout bill comes due, as the alternative is the complete collapse of US housing. We didn’t think so.

The “hypothetical” downturn that would crush the GSEs:

From Bloomberg:

The two mortgage-finance giants, which have already taken $187.5 billion in taxpayer aid since 2008, would need more funds to stay afloat if home prices plummeted in a severe downturn, the Federal Housing Finance Agency said in a report today. The stress tests, mandated by the Dodd-Frank Act, use the same assumptions that the Federal Reserve does in gauging the ability of the nation’s largest banks to withstand a recession.

 

The results reflect the terms of the companies’ bailout, which require them to send to the Treasury all of their quarterly profits above a minimum net worth threshold. That money, counted as a return on the U.S. investment, prevents them from rebuilding capital or paying down debt to taxpayers.

 

“These results of the severely adverse scenario are not surprising given the company’s limited capital,” Fannie Mae (FNMA) Senior Vice President Kelli Parsons said in a statement. “Under the terms of the senior preferred stock purchase agreement, Fannie Mae is not permitted to retain capital to withstand a sudden, unexpected economic shock of the magnitude required by the stress test.”

 

The companies would need $84 billion to $190 billion by the end of 2015 in the worst circumstances, depending on accounting assumptions, the tests showed.

 

 

The stress test results come as congressional momentum for winding down Fannie Mae and Freddie Mac appears to be stalling and shareholders push to keep the companies alive.

Of course, since this is a stress test that uses “the same assumptions that the Federal Reserve does” it means it is i) wrong (see Bank of America) and ii) woefully optimistic (as usual). But more importantly, all it confirms is that the GSEs are still nothing more than a massively levered bet on the general direction of housing. Yes, Fannie and Freddie have returned billions to the Treasury, but that is only because of the trillions monetized by the Fed. Trillions, incidentally, which have been insufficient to stimulate a self-sustaining housing rebound now that the fourth dead cat bounce in housing is over and home prices are once again rapidly rolling over.

Which means that any decision about the future of the GSEs will be determined not by Congress, by Obama, by Fairholme or by Ackman, and will be purely in the hands of the market once again – a market which increasingly appears ready to roll over, and take everything down with it. Among the things to be taken down? Another at least $190 billion in taxpayer funds.

Again.




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John Stossel on How American Dreams Are Stifled by Government Regulations

In the United States, it’s OK to fail
and fail and try again. Some of America’s biggest successes came
from people who failed often. Henry Ford’s first company failed
completely. Dr. Seuss’s first book was rejected by 27 publishers.
Oprah was fired from her first job as a reporter. 

They all kept striving—and succeeded. But those happy
experiments are less likely to happen today, John Stossel writes.
Now there are many more rules, and regulators add hundreds of pages
of new ones every week. And the more the government “protects” us,
the more it puts obstacles in the way of us trying new things and
taking new chances. 

View this article.

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The United States of Regulation: Compliance Costs Consume Huge Chunks of Our Economy

This is the paperwork needed to request the paperwork needed to comply with the Paperwork Reduction Act of 1995 If the money spent in America
on enforcing and complying with federal regulations was used
instead to start a whole new country, this new country would be a
major economic player on the world stage. So calculates Clyde Wayne
Crews at the Competitive Enterprise Institute in his annual
survey
of the state of federal regulation, titled “Ten Thousand
Commandments.”

Though there’s no easy way to quantify private regulatory costs
because they’re not the kind of things that show up on budgets,
Crews calculates that Americans paid a grand total of $1.863
trillion in federal compliance costs for 2013.  That’s more
money than the entire Gross Domestic Products of countries like
Australia, Canada, and India.

Just imagine the paperwork you'd have to fill out to run for president of this country.

Working through Bureau of Labor Statistics data calculating the
number of households in America and an average household income of
$65,000, Crews attempts to calculate how much of each family’s
budget is consumed by the cost of federal regulations, assuming
logically that businesses pass the costs along to consumers. Crews
acknowledge his attempted calculations aren’t fully scientific, but
he estimates that if the costs of regulation are completely passed
through to consumers, each household pays nearly $15,000 a year in
hidden regulatory costs. That’s nearly a quarter of the average
household income before taxes and higher than any other expense
outside of housing.

Hmmm ... wonder why people buy clothes from retailers who turn to sweat shops?

Crews is only focusing on the costs of federal regulations, by
the way. Imagine what additional burdens are faced by residents of
high-regulation states like California and New Jersey.

Crews’ report focuses a lot more on just these figures. There
are all sorts of terrifying numbers in his 89-page report. Some
highlights from his summary:

  • This is the 21st edition of Ten Thousand Commandments. In that
    time, 87,282 final rules have been issued. That’s more than 3,500
    per year or about nine per day.
  • The “Unconstitutionality Index” is the ratio of regulations
    issued by agencies compared to legislation passed by Congress and
    signed into law by the president. The ratio stood at 51 for 2013.
    That means there were 72 new laws and 3,659 new rules – 51 rules
    for every law, or a new rule every 2 ½ hours.
  • The top six federal rulemaking agencies account for 49.3
    percent of all federal rules. In 2013, these were the Departments
    of the Treasury, Commerce, Interior, Health and Human Services, and
    Transportation and the Environmental Protection Agency.
  • Small businesses pay more in per-employee regulatory costs.
    Firms with fewer than 20 employees pay an average of $10,585 per
    employee, compared to $7,755 for those with 500 or more
    employees.

Read the full report
here
(pdf). Despite the length and subject matter, I find the
report very accessible.

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Pre-FOMC Market Update: Chaos

ADP “beat” sent stocks and USD up, bonds and gold down. GDP “miss” sent stocks and USD down, bonds and gold up… and now the Fed’s emergency meeting has sent all asset classes into a Tapering-the-taper frenzy as chaos hits markets sending stocks up to highs of day (less Taper), Bond yields to lows of day (low growth less taper), USD tumbling (less taper, moar QE vs ECB), and Gold jumping higher (less taper, more QE)… correlation is crumbling everywhere as the Fed’s calming communications cause chaos…

 

 

Chart: Bloomberg




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Conservative Millennials More Likely to Vote in Midterm Elections Than Young Liberals

Democrat, Republican, or independent, millennials
aren’t likely to be flocking to the voting booth
come November.
A new national poll from Harvard’s Institute of Politics (IOP)
finds less than a quarter of 18- to 29-year-olds say they will be
“definitely” be voting this fall. Yet young conservatives are more
likely to be among midterm voters than young liberals.

Thirty-two percent of self-identified conservatives said they
would definitely vote in the November 2014 elections, compared
to only 22 percent of self-identified liberals. Of millennials who
voted for Mitt Romney in 2012, 44 percent say they’ll vote this
fall, compared to 35 percent of those who voted for President
Barack Obama in 2012. 

This isn’t too surprising. In general, midterm elections tend to
draw out more base voters for the party not in power, and many
millennials full of Hope® in 2008 or 2012 have spent the past
several years becoming disillusioned with Democrat power. 

In fact, Gen Y trust in politicians and government institutions
is at a five-year low, according to the IOP poll. Trust in Obama
has dropped to 32 percent, and trust in the Supreme Court is at 36
percent. Trust was highest for the U.S. military, at 47 percent.
Additionally, 62 percent of respondents agreed with the statement,
“elected officials seem to be motivated by selfish reasons,” and
nearly a third agreed that “political involvement rarely has any
tangible results.” 

“To inspire the next generation to public service—and to improve
our communities—our elected officials need to move past the bitter
partisanship and work together to ensure progress and restore trust
in government,” said IOP Director Trey Grayson. 

It’s a lovely sentiment, but he might as well have said our
elected officials need to start pooping unicorns in top hats.
“Moving past bitter partisanship” doesn’t seem like something
either Republicans or Democrats are terribly interested in. When
you’re out of touch, out of ideas, and have no consistent political
philosophy, bitter partisanship is really your best bet. 

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Why Did The Fed Hold An Emergency Meeting Yesterday?

Everyone knows that the FOMC announcement, due today at 2 pm, will be the culmination of an orderly, traditional 2-day meeting which started yesterday, April 29.

What few know, however, is that in addition to the generic FOMC meeting which started yesterday at 10:30 am, at about the same time, the Fed also held an “expedited” emergency meeting between the four board governors Yellen, Tarullo, Stein, and Powell.

As the WSJ adds, “The four members of the board met to discuss “medium-term monetary policy issues,” according to a meeting notice posted on the Fed’s website…. A Fed spokesman declined to say if the two meetings were combined, or how long the board meeting lasted.” The WSJ also notes that the “last time the Fed board met to discuss “medium-term monetary policy
issues” was on April 26, 2011, according to analysts at BNP Paribas.

The notice:

So what was discussed? We won’t know because the “meeting was closed to public observation by Order of the Board of Governors because the matters fall under exemption(s) 9(A)(i) of the Government in the Sunshine Act (5 U.S.C. Section 552b(c)), and it was determined that the public interest did not require opening the meeting.”

Ironic, because nothing the Fed does is in the public interest. Or, to be specific, 99% of the public…




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