Nomi Prins: World’s Most Important Bank Issues Urgent “Zombie Alert”

Authored by Nomi Prins via The Daily Reckoning,

It’s been a decade since the world’s major central banks reacted to the financial crisis by cheapening the value of money through record low, zero or negative rates.

What my research for my book Collusion: How Central Bankers Rigged the Worldrevealed was how central bankers and massive financial institutions have worked together to manipulate global markets for the past decade.

Major central banks gave themselves a blank check with which to resurrect problematic banks; purchase government, mortgage and corporate bonds; and in some cases — as in Japan and Switzerland — buy stocks, too.

They have not had to explain to the public where those funds were going or why. Instead, their policies have inflated asset bubbles while coddling private banks and corporations under the guise of helping the real economy.

The zero interest rate and bond-buying central bank policies prevailing in the U.S., Europe and Japan have been part of a coordinated effort that has plastered over potential financial instability in the largest countries and in private banks.

It has, in turn, created asset bubbles that could explode into an even greater crisis the next time around.

So today we stand near — how near we don’t yet know — the edge of a dangerous financial precipice. The risks posed by the largest institutions still exist, only now they’re even bigger than they were in 2007–08 and operating in an arena of even more debt.

Now the Bank for International Settlements (BIS), or the “central bank of central banks,” is sounding a new alarm on this policy.

In its recent quarterly report, the BIS warned that low rates have catalyzed an increase in the number of “zombie” firms. The number of such firms has now risen to an all-time high.

Zombie firms are companies “that are at least 10 years old, yet are unable to cover their debt service costs from profits.” Their prospects for future growth aren’t so hot either.

According to the BIS, these zombies are still piling on debt and sucking money out of the real economy. Zombies “took on more debt and disposed of fewer assets after 2000.” This behavior accelerated after the financial crisis because of low interest rates.

The problem is that once a company becomes a “zombie” it tends to stay a zombie. That phenomenon is only getting worse. The BIS disclosed that “whereas in the late 1980s zombie firms had a 60% chance of staying in that condition the following year, the probability reached 85% in 2016.

Zombies created from an influx of central bank money aren’t good long-term investments. It’s one thing for a company to take on debt to grow, but it is another to take on debt simply to re-pay other debt.

When the debt bomb finally detonates, it’s the rest of us who will suffer. Because of the collusion that’s gone on and continues to go on among the world’s main central banks, that problem is now an international one.

You can avoid the worst of the fallout by staying away from such firms and targeting ones with healthier balances of debt and debt-payment abilities.

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A Sign Of The Times? Political Divide In America The Worst It’s Ever Been

The political divide between Democrats and Republicans is the worst it has ever been, according to a new Michigan State University report.

In the report, Zachary Neal, associate professor of psychology and global urban studies, applies a stochastic Degree Sequence Model to data on bill co-sponsorship in both the US House of Representatives and US Senate, from 1973 (93rd session) to 2016 (114th session) of political relationships among legislators, which uncovers a startling trend in congressional polarization to be the most divided in five decades.

“What I’ve found is that polarization has been steadily getting worse since the early 1970s,” he said. “Today, we’ve hit the ceiling on polarization. At these levels, it will be difficult to make any progress on social or economic policies.”

US House 96th Session (1979/1980) – shows weak polarization among Democrats and Republicans

US House 114th Session (2015/2016) – shows extreme polarization among Democrats and Republicans

Published last week in the journal Social Networks, the study found although thousands of bills are introduced each year, the average representative or senator co-sponsors only about 200. And when they decide with whom to co-sponsor bills, they view nearly half of their colleagues as “the opposition,” said MSU Today.

While it is hard to think incivility among Democrats and Republicans today could get worse, it likely will, Neal said.

Increasing polarization among Democrats and Republicans have been in a 45-year bull run.

Polarization has created political turmoil in Washington:

Neal said the Patient Protection and Affordable Care Act of 2010 is a prime example. The Democrats held a narrow majority and passed the bill. Then seven years later when Republicans took control with a slim majority, they tried to repeal it.

“We’re seeing lots of animosity in politics,” he said. “Although bills do occasionally get passed, they don’t stick around long enough, or never get fully implemented, and therefore don’t have lasting impact. This kind of partisanship means that our democracy has reached a kind of stalemate.”

The solution to this dangerous polarization: elect more centrists to Congress, Neal added. But that will be extremely tough today because American voters are leaning towards nationalism, who are increasingly polarized too.

“This study raises new questions about the future of Congressional politics,” he said. “In truth, the only thing that is bi-partisan in Congress is the trend toward greater polarization.”

The political divide in America did not happen overnight. The trends at play took many decades to unfold, but now, it is only being realized.

Today’s extreme polarization could be part of the Strauss–Howe generational theory, also known as the Fourth Turning theory, which could give way to a new era of politics once the political deadlock is over. Perhaps, maybe, that is a key indication the swamp draining is on the horizon. Turmoil is coming. Strap in.

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How Amazon’s Minimum Wage Hike Benefits Jeff Bezos

Authored by Brittany Hunter via The Foundation for Economic Education,

How Bezos would benefit from a federal minimum wage hike…

Amazon made headlines earlier this week after it announced it would raise its minimum wage to $15 an hour, a move that will impact more than 350,000 of its U.S. employees beginning November 1st. This decision came in the wake of harsh criticisms claiming that the online retailer both underpays and mistreats its workers. And while these accusations are largely exaggerated if not completely unfounded, CEO Jeff Bezos still caved in and appeased his critics.

To be sure, it is better for a private company to raise its own wage rates than for it to be forced to by the government. But how voluntary is it really when you have powerful government figures constantly making threats against the company? The minimum wage may be an act made under duress, in order to forestall government regulation and punishment.

Moreover, before we roll out the red carpet and celebrate Bezos for this move, it would be wise to take a closer look at why he did it. Once you look beneath the surface, the company’s motives seem less than pure.

The War on Amazon

Amazon is by no means an underdog in the world of online retail. However, while the company is beloved by consumers, it has been the target of politicians and leftists who hate the rich and are obsessed with income inequality. The higher Jeff Bezos’ net worth rises, the more criticism he seems to attract. But this criticism isn’t limited to the left alone.

President Trump has had a love affair with condemning the company and has even accused Bezos of killing American jobs and chastised him for taking advantage of corporate tax breaks. Trump has also frequently blamed the company for the death of brick-and-mortar retailers, as well as for owning The Washington Post, which is sometimes critical of the president. But most of the flack Bezos’ has received has come from the left.

Senator Elizabeth Warren has routinely attacked the company and accused it of violating antitrust laws. And in a not-so-subtle blow, Senator Bernie Sanders recently introduced a bill blatantly named the “Stop BEZOS Act.” While the bill’s title is actually an acronym for “Stop Bad Employers by Zeroing Out Subsidies Act,” its name was clearly not an accident.

Sanders’s bill is a direct attack on Amazon and seeks to levy a 100 percent tax on government benefits, like food stamps, utilized by its employees. Though the bill would apply to any company with over 500 employees, Sanders called out Amazon by name and accused Bezos of paying his employees so little that they had no choice but to turn to the government for help.

Sanders also commented:

In other words, the taxpayers of this country would no longer be subsidizing the wealthiest people in this country who are paying their workers inadequate wages. Despite low unemployment, we end up having tens of millions of Americans working at wages that are just so low that they can’t adequately take care of their families.”

The bill was introduced last month, right after it was announced that Amazon’s market cap had reached $1 trillion and that Bezos was now the richest man in the world—a level of success that progressives like Sanders despise. But accusing the company of forcing its employees on food stamps is extremely misleading. Many of Amazon’s employees are temp or seasonal workers who were already using government welfare programs prior to their employment with the company. In fact, when Snopes dug deeper into the claim, it found that 11.8 percent of Amazon’s Ohio employees might be on food stamps, but that this number was merely an estimate that could not be confirmed.

This perpetual criticism from progressives has turned Bezos into something of a hero to those who support the free market. But this latest wage increase may change all that, as it has led many to wonder if the tables have turned and the bullied has now become the bully.

The Bullied Becomes the Bully

It is one thing for Amazon to independently come to this decision on its own and to take it upon itself to actively encourage other companies to do the same. After all, in a truly free market, it would be up to each company to work with its employees to set wage rates without the government intervening. But that isn’t what Amazon has done. Instead, Bezos also recently announced that it would begin lobbying for an increase in the federal minimum wage, using the government to coerce other companies into raising their rates, as well. And the timing of this decision was not random.

The Wall Street Journal has astutely described Bezos’ decision as “political insurance.” Not only does the wage increase help the company look more sympathetic and provide some protection against the likes of Sanders and Warren, but it also helps squash the competition.

As it stands today, the market for warehouse workers is highly competitive. And with the holiday season quickly approaching, online retailers will be hiring a decent number of seasonal employees to keep up with increased consumer demand. Amazon, for example, plans to hire 100,000 temporary employees this season. And for the companies who cannot afford to shell out $15 an hour for seasonal employees, this means missing out on high-quality workers.

Competition, and especially competition for highly-skilled workers, is key to the market process, but this is not what Bezos is doing. As the Wall Street Journal says, “Mr. Bezos’s $15 wage would be a lot more praiseworthy if he hadn’t combined it with a plea for government to raise the labor costs of his competitors.” But unfortunately, the situation is actually even murkier than this.

Amazon has already begun automating many of its warehouse positions, especially in China. In fact, one of its warehouses in China currently has only four human workers. With the rapid rate in which Amazon has been automating, it is likely that the rise in the minimum wage won’t really impact the company. If only a handful of your employees are human, then raising the minimum wage means very little. And since other companies cannot afford to incorporate AI as quickly as Bezos can, this puts the competition in a rough spot.

Again, all this would be fine if Amazon wasn’t simultaneously pushing for the government to get involved in regulating the wage rates of its competitors, intentionally putting them at a disadvantage.

Summing up the entire situation perfectly, financial investor and commentator Peter Schiff writes:

Bezos is no fool. He will reduce his headcount, and step up his automation effort to eliminate as many low-skilled jobs from Amazon. Then he will lobby Congress to increase the minimum wage for his competitors that still employ lower-skilled workers. As these competitors will lack the resources to automate, they will be driven out of business, and all their workers will lose their jobs. Less competition will make it easier for Amazon to raise prices.”

As an entrepreneur, Jeff Bezos is an absolute hero and a benefactor of the human race. But our crony-capitalist political system can corrupt even the best of us.

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Nearly 40% Of Americans Consume Fast Food Every Day; Guess Who Eats The Most?

A new study from the CDC reveals that 36.6% of American adults consume fast food every day, and that rich people eat more of it than those in the lower income brackets. Americans at 130% or less of the Federal Poverty Level (FPL) consumed the least fast food, while those at 350% of FPL ate the most

Broken down by age, those 20-39 consumed the most fast food, while Americans over 60 consume the least. 

By race, non-Hispanic black Americans lead the pack at 42.4% eating fast food on any given day, while Asians consume the least at 30.6%. 

By time of day, lunch takes the cake – with 48.3% of men vs. 43.7% of women opting for fast food, followed closely by dinner. 

The CDC would like all of us to know that fast food consumption is associated with increased intake of calories, fat, and sodium. Also worth noting is an increased risk of diabetes and other expensive yet largely preventable health conditions. 

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Renowned Cosmologist Warns: Earth Could Be Crushed By Particle Accelerator

Authored by Mac Slavo via SHTFplan.com,

Martin Rees, a well-respected British cosmologist, has a warning about particle accelerators. There is a small, but very real possibility of disaster.  Rees claims Earth could be crushed to the size of a soccer field by particle accelerators.

The Large Hadron Collider, which is a particle accelerator, shoots particles at incredibly high speeds, smashes them together, and scientists observe the fallout. According toScience Alert, these high-speed collisions have helped us discover a lot of new particles, but according to Rees, these discoveries come with several risks to humanity. In a new book, called On The Future: Prospects for Humanity, he gives some pretty dire possible outcomes of this type of advancement in science.

“Maybe a black hole could form, and then suck in everything around it,” he writes, as Sarah Knapton reported over at the Telegraph.

“The second scary possibility is that the quarks would reassemble themselves into compressed objects called strangelets. That in itself would be harmless. However, under some hypotheses, a strangelet could, by contagion, convert anything else it encounters into a new form of matter, transforming the entire earth in a hyperdense sphere about one hundred meters across.”

 That’s about the length of one soccer field or 330 feet.

But there’s an even more sinister way that Earth could be destroyed by the particle accelerators built on it. According to Rees, this would be a “catastrophe that engulfs space itself.”

“Empty space – what physicists call the vacuum – is more than just nothingness. It is the arena for everything that happens. It has, latent in it, all the forces and particles that govern the physical world. The present vacuum could be fragile and unstable,” Ress said.  

Some have speculated that the concentrated energy created when particles crash together could trigger a ‘phase transition’ that would rip the fabric of space. This would be a cosmic calamity, not just a terrestrial one.”

But CERN alleges that there is no cause for concern.

“The LHC Safety Assessment Group (LSAG) reaffirms and extends the conclusions of the 2003 report that LHC collisions present no danger and that there are no reasons for concern,” CERN writes on their website. 

“Whatever the LHC will do, nature has already done many times over during the lifetime of the Earth and other astronomical bodies.”

The late Stephen Hawking even said the hadron collider is not a bad thing. 

“The world will not come to an end when the LHC turns on. The LHC is absolutely safe. … Collisions releasing greater energy occur millions of times a day in the earth’s atmosphere and nothing terrible happens,” said Hawking.

“Nevertheless, physicists should be circumspect about carrying out experiments that generate conditions with no precedent, even in the cosmos,” Rees writes.

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The 30-Year Has “Broken Out” – Jeff Gundlach Warns Stocks And Bonds Are Going Lower Together

Having broken above its multi-decade trendline, 30Y Yields are starting to levitate faster than even the equity markets can handle…

Following this week’s bond-market rout, DoubleLine’s Jeff Gundlach noted that the 30 Year Treasury yield “has broken above its multi-year base” which “should lead to significantly higher yields for investors.”

During a webcast last month, Gundlach said the effect that stimulus has on markets is akin to the effect that miracle grow can have on plants. Too much of it burns them out – which is why it’s not encouraging that deficits are widening this late in the cycle.

And if yields continue to rise, the selling rout in both bonds and equities – a twin rally that has been fueled by QE and rising US debt levels – will likely worsen. Indeed, the bond market is facing a crucial test.

During that webcast, Gundlach pointed out that the S&P 500 and US debt outstanding have climbed in tandem since the bull market began.

SNP

And with the Fed in quantitative tightening mode, the markets are slowly losing a crucial source of support. While it’s possible that rates could drop again, Gundlach said this is merely conjecture. Yields are on the cusp of a crucial breakout.

“As I have been saying, two consecutive closes above 3.25 percent on the benchmark 30-year Treasury means that my statement in July 2016 that we were seeing the low – I said italicized, underlined and in boldface – is now, looking at the charts, thoroughly corroborated,” Gundlach told Reuters.

The 30-year is “the last man standing” in the Treasury market. And if the curve continues to steepen, equities will move lower, particularly if yields climb at an “alarming” pace.

“Also, the curve is steepening a little in this breakout, which is another sign that the situation has changed.”

Already, “the stock market has started to take notice,” Gundlach warned “and will continue to… particularly if the speed at which rates rise becomes alarming.”

Gundlach finished his interview with another bold call. Namely, that stocks outside the US are already down significantly from the Jan. 26, 2018, synchronized high, “which will go down in history as the peak for the global stock market for this cycle.”

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The Tyranny Of “The Collective” By The Illusions Of Narratives

Authored by Doug “Uncola” Lynn via TheBurningPlatform.com,

“We know that no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end.”

    – George Orwell, “1984”, part 3, chapter 3,

Tyranny:

1 : oppressive power  especially : oppressive power exerted by government

4 : an oppressive, harsh, or unjust act : a tyrannical act

It is a fact the election of Donald Trump exposed certain undeniable realities in the United States for those willing to see.   Perhaps first and foremost of the various revelations is the bona fide existence of The Collective.  Also known as the Uniparty or The Establishment, The Collective is comprised of the following:  The Democratic Party, Republican’s in Name Only (RINOs), Neo-conservatives (Neocons), the Mainstream Media, the Corporatocracy, globalists, elite bankers and unelected government bureaucrats and officials; also often referred to as The Deep State or Military Industrial Complex.

All of these entities have attained singularity through the decades while, for the most part, retaining some “plausible deniability” of their collusive connectivity prior to the 2016 Presidential Election.  But now the veil has been lifted.  As The Collective has unified in polar opposition against everything Trump, so has its immorality and lawlessness been additionally exposed; like nude streetwalkers performing dirty tricks in broad daylight on busy corners.

Over the past half century, if not before, The Collective has politicized, and weaponized, everything it could subvert.  From the Federal Bureau of Investigation (FBI) to the courts, from professional football to late night comedy, from Hollywood to advertising, from social media to education, from race to gender, to sex. Especially sex; and in ways seemingly derived from the nightmares of George Orwell and Aldous Huxley.

Paradoxically, however, it is more often the values of conservatives onlythat are called into account. The Collective will string up blacks like Clarence Thomas via high-tech lynchings and bully free-thinking Afro-Americans like Kanye West, Candace Owens, and Stacy Dash by labeling them “Uncle Toms”. The Collective will pass judgement on conservative Supreme Court nominees with no evidence beyond slander and innuendo.  In fact, it is The Collective desiring One World Under Them, which wields Orwellian Newspeak terminology such as racistmisogynisthomophobicxenophobe, and Islamophobia, like the proverbial pitchforks and torches.

The Collective sows the politics of personal destruction in order to reap the whirlwinds of division. It shills rancor and broken dreams in order to form a new reality in its own image.  A world where timeless moral principles are set aside for (they claim) the good of all.

Notwithstanding, The Collective’s new religion is as phony as Michael Avenatti’s concern for clients.

Now social media companies have purged “thought criminals” on their respective platforms, even as the rogue special counsel investigator, Robert Mueller, has exploited imaginary crimes in order to conceal actual government corruption and, likely, treason.  The Collective preaches the tolerance of transgender men in the bathrooms of our daughters and wives while actively bullying and defaming those they consider as dissidents.  Falsehoods from contrived, and illegal, government “leaks” are published and broadcast as being true while real facts are slandered as “fake news”.

A public that can no longer distinguish between truth and fiction is left to interpret reality through illusion.  Random facts or obscure bits of data and trivia are used either to bolster illusion and give it credibility, or discarded if they interfere with the message…

When opinions cannot be distinguished from facts, when there is no universal standard to determine truth in law, in science, in scholarship, or in reporting the events of the day, when the most valued skill is the ability to entertain, the world becomes a place where lies become true, where people can believe what they want to believe.  This is the real danger of pseudo-events and pseudo-events are far more pernicious than stereotypes.  They do not explain reality, as stereotypes attempt to, but replace reality. Pseudo-events redefine reality by the parameters set by their creators. These creators, who make massive profits selling illusions, have a vested interest in maintaining the power structures they control.

– Hedges, Chris (2009). “Empire of Illusion”, Nation Books, New York, NY, 2009, page 51

Kabuki Theater? Or Political Darwinism?  Either way, conservatives lose political ground whenever they swallow the moral premises of The Collective.  This is because The Collective utilizes deception to conceal their actual motives while simultaneously gaslighting and blackmailingconservatives by means of conservative values.

In a manufactured reality, pseudo-events are designed to create consensus in order to manipulate outcomes.  In other words, The Collective spins illusionby means of narrative.

In the gun control and immigration debates, for example, The Collective doesn’t really care for “the children”. In truth, they use “the children” as a means to consolidate political power. Certainly, The Collective weaponizes the morality of conservatives against said conservatives; and whenever the twisted virtue of The Collective is accepted, the new global religion expands.

Consider the Kavanaugh debacle.  Underlying all of the Supreme Court nomination theater, the desire of those opposing the judge is simply this: To project a woman’s right to choose.  Whether or not Kavanaugh is actually a threat to that right is beyond the point. He is perceived as a threat to “Roe v. Wade” by his opponents. This means a man’s reputation has now been slandered, and without any real evidence, in order to protect a woman’s right to abort her fetus at will.

At the same time, it’s quite possible The Collective has staged the Kavanaugh production in order to further decimate America’s institutions in pursuit of global objectives.

You win, they win. You lose, they win.

Dirty politics are merely a subset of politics; and politics define Man’s relations with Man. If the U.S. Constitution was set-up to facilitate political, economic, and religious freedom – then wouldn’t an ideal system designed to control the masses, tear down these same conceptions?  And how would such a system take hold? Perhaps by combining opposites through a twisted sort of immoral ecumenicalism: law plus corruptionandrogynyrace and gender divisions by means of political correctnessslanderaccusations, and lies – and all for the purposes of a new global singularity.

It’s no surprise how The Collective confounds the logical. It loudly laments children being separated from their parents at the border AND Judge Kavanaugh for threatening the freedom of mothers who choose separation in the womb.  If old-fashioned virtues such as logic, reason, morality, and law, no longer apply in politics today, then progress now simply requires faith; or, rather, what people believe. Even so, who says the theological premises currently conveyed by The Collective should be accepted at all?  They do. That’s who.

Unfortunately, in all circumstances electronically programmed, or manufactured, the consensus remains real nevertheless.

Therefore, the actual enemy of common sense and decency currently, is not only The Collective, but moreso those who support The Collective with their votes, and by believing its liesinnuendoaccusations, and slander.  Therein also lies the dialectical dilemma of the mushy-minded middle; including Republican Senators like Jeff Flake, Susan Collins, and Lisa Murkowski:  As The Collective descends further into criminalitycorruption, and dishonor, these blind centrists now lament the lack of “cooperation” and “compromise” in America.

Turning and turning in the widening gyre

The falcon cannot hear the falconer;

Things fall apart; the centre cannot hold;

Mere anarchy is loosed upon the world,

The blood-dimmed tide is loosed, and everywhere

The ceremony of innocence is drowned;

The best lack all conviction, while the worst

Are full of passionate intensity.

– Yeats, William Butler (1920). “The Second Coming”.

Only one of the bimodal goalposts has significantly moved over the past six decades, yet the lukewarm lament the widening gyre and blame both teams. In the long term, these people cannot save the nation.

So is it all just politics, or reality television? The differences, of course, are in the consequences. Reality can never be denied for long and this is reality: We’ve passed the point of no return.  America is circling the drain. All of her institutions are under attack currently and, barring any great and unforeseen circumstances, won’t survive. In order to truly drain the swamp, a lot of people would have to die. Conversely, so, too, must others be removed prior to the establishment of the New Faith.

Therefore, a larger question remains:  Who dies and who survives?

The Russian investigation has decimated the trust of fifty-percent of the country in the voting system. The credibility of the FBI and Department of Justice (DoJ) has been destroyed in the eyes of the other fifty percent. Half of America hates Trump as Congress now experiences abysmal approval ratings.  Most recently, the Kavanaugh affair has acted as a splitting maul in a country of felled trees; while the Supreme Court nomination process, and likely the Court itself, now falls to the sound of “timber”.

Is it that simple? As easy as left and righthe saidshe said, and black and white? Either way, there are no participation trophies awarded in Political Darwinism. Many on the right are playing the voting game while The Collective establishes its new religion In truth, The Collective will sacrifice everything you have and blame you all the way down. Be assured it is their plan because compromise is no longer an option.  The Rubicon has been crossed and there are those who will die to defend their New World Order. How about you?

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L.A. Mayor Says Gas Taxes Are Needed to Fix Roads While Standing in Front of Rail Station Funded By Gas Taxes

Opponents of Proposition 6, a California ballot initiative that would repeal the state’s recent $5-billion-a-year gasoline tax increase, are playing a difficult double game. They argue that any additional money motorists pay at the pump is needed to fix the state’s dilapidated roads and bridges, while insisting that eliminating the revenue will jeopardize mass transit projects those motorists don’t use.

Yesterday, for instance, Los Angles Mayor Eric Garcetti gave a full-throated endorsement to the No on Prop. 6 campaign while standing in front of a $150 million train station funded by the gas tax hike. “If we see this repealed, we will pay—make no mistake,” Garcetti said. “We’ll pay in lives, we’ll pay in dollars, we’ll pay in broken axles, we’ll pay in popped tires, we’ll pay during earthquakes.” He was surrounded by hardhat-wearing construction workers waving signs reading “stop the attack on road and bridge safety.”

A news release promoting that event mentions rail funding in passing before listing a bunch of highway projects threatened by the ballot initiative. On Twitter, Garcetti warned that “California’s #Prop6 would delay or eliminate 900 L.A. projects that are working to ease congestion, fix local roads, and improve bridge safety.”

The official No on Prop. 6 campaign also has been leaning heavily on the road funding angle. This week saw a new ad blitz featuring the hardhat-wearing president of the American Society of Civil Engineers, Kristina Swallow, arguing that “crumbling bridges and roads put lives at risk every day” and that a repeal of the gas tax would cost Los Angeles some $6.3 billion in dedicated transportation funding. The ad does not mention how much of this transportation funding is actually mass transit funding. The answer is a lot.

In April, L.A. Metro, Los Angeles County’s main transportation agency, was awarded some $330 million, mostly from gas taxes, for a slate of rail and other mass transit projects. The city of Los Angeles got another $33 million to buy new electric buses. Intercity rail connecting San Diego and Los Angeles got another $180 million in these grants. L.A. Metro has warned that if Prop. 6 succeeds, the agency will lose some $4.9 billion in grants.

These projects are getting scant mention in gas tax proponents’ messaging in the lead-up to Election Day, and it’s not hard to understand why. Some 83 percent of Californian workers drive to work (either alone or in some form of car or van pool) on some of the nation’s worst-maintained, most congested roads, while paying the second highest gas taxes in the country.

Whatever hope gas tax proponents have of getting these motorists to vote for keeping their gas taxes so high rests on convincing them that the new money will pay for road repair and maintenance. Highlighting the billions of dollars of gas tax revenue being siphoned away from these repairs to pay for mass transit does not make that task any easier.

At the same time, getting urban liberals, environmentalists, and other members of the pro-transit coalition to show up and vote no on the gas tax repeal requires occasional references to all those rail and bus projects. Walking this tightrope requires press conferences like Garcetti’s, where all the talk is about road repair, while in the literal background is nothing but gas-tax-funded transit.

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Anti-Kavanaugh Protesters Descend On Senate; 100 Arrested Including Amy Schumer

At least 100 protesters were arrested on Thursday afternoon after a mob descended on the Hart Senate Office building to protest the confirmation process of Supreme Court nominee Brett Kavanaugh. 

Loud chants could be heard throughout the Senate building, which is structured so the hallways of each floor open up and look out onto the first floor, where dozens of protesters were staged.

Kavanaugh’s nomination has been embroiled in controversy since Christine Blasey Ford, a college professor from California, accused him of sexually assaulting her when the two were in high school more than three decades ago. Two women have since come forward with their own sexual misconduct allegations against Kavanaugh, all of which he has denied. –The Hill

Among those arrested was comedian and Chuck Schumer relative, Amy Schumer. 

Model Emily Ratajowski says she was also arrested. “Today I was arrested protesting the Supreme Court nomination of Brett Kavanaugh, a man who has been accused by multiple women of sexual assault. Men who hurt women can no longer be placed in positions of power,” she tweeted. 

Prepare for weeks of protests after Kavanaugh’s likely confirmation to the Supreme Court.  

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Elon Musk Openly Mocks the SEC on Twitter, Calls them “Shortseller Enrichment Commission”

Just hours after we reported that a judge was seeking further explanation on the fairness of the settlement between Elon Musk and the Securities and Exchange Commission, a tweet from Elon Musk’s Twitter account openly mocked the government agency. In a Tweet by Musk just after 4PM EST, he referred to the SEC as the “Shortseller Enrichment Commission“.

When called out about the typo (of leaving the word “say” out in between “to” and “that”), Musk doubled down on his comments, seemingly saying about the SEC, that it’s “their mission” and “what they do”.

As a reminder, one of the conditions of Elon Musk’s proposed settlement with the SEC was that he was to have all of his tweets vetted by the company before he put them out. The settlement required “Tesla Inc. to put in place a system to monitor his public communication.” 

So did Musk just jeopardize the terms of his settlement? As we also noted earlier, Musk’s agreement with the SEC still has not been finalized as a judge is awaiting further details before signing off on it. 

Following Musk’s tweet, Tesla shares fell 2.4% to $275 in after hours trading on concerns that Musk might again be in jeopardy with the SEC, threatening the considerable “Musk premium” that has for years been the most valuable component of Tesla stock.

Tesla shares erased nearly all of their gains from September last week when Musk revealed that he would fight the SEC as it sought to hold him accountable for a reckless tweet that he had secured private funding to take Tesla private at $420 a share. The agency revealed that Musk knew the tweet was disingenuous – in fact, the $420 takeout figure was meant to be “an inside joke” between Musk and ex-girlfriend, the Canadian musician Grimes, involving “drug culture.”

But after Musk rejected the SEC’s initial offer, sending shares sharply lower, he changed his mind and agreed to pay a $20 million penalty (while Tesla would pay another $20 million) and surrender his chairman role on the company’s board, while agreeing to pre-clear tweets with the company in the future.

We wonder what that judge – and more importantly – the SEC, are thinking right now. 

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