“It’s A Weapon For The US” – China Official Renews Calls To Dethrone The Dollar

“It’s A Weapon For The US” – China Official Renews Calls To Dethrone The Dollar

Via SchiffGold.com,

Last year, we reported extensively on a push toward de-dollarization by countries like Russia and China and their desire to undermine the ability of the US to weaponize the dollar as a foreign policy tool. Europe was even starting to push to dethrone the dollar as the reserve currency.

With the Federal Reserve running the dollar printing press at full speed and the US government expanding the national debt into the stratosphere, there are renewed calls for a currency to replace the dollar as the world reserve.

This week, Shanghai Gold Exchange (SGE) President Wang Zhenying called for a new super-sovereign currency to replace the greenback.

Reuters reports:

Concern has mounted among some market participants over the dollar-denominated system as the US Federal Reserve cut interest rates to near-zero and embarked on unlimited quantitative easing to contain the economic damage of the coronavirus pandemic.”

Wang said that the Fed’s monetary policy in response to COVID-19 would eventually tank the dollar even though the current crisis has triggered a scramble for greenbacks.

When the Fed turns on the liquidity tap, the US dollar will, in theory, be in a long-term depreciatory trend.”

Peter Schiff has been predicting that the dollar is going to tank for quite some time. It’s a matter of when, not if.  As the coronavirus crisis began to unfold and the Fed fired up the printing press, Peter said that with the central bank and government response to the coronavirus, hyperinflation has gone from being the worst-case scenario to the most likely scenario.

Peter has also said he thinks people will eventually start dumping dollars.

Nobody can hold dollars. Nobody can hold any bonds denominated in dollars. This is now like a game of musical chairs where nobody wants to get caught with dollars when the music stops playing.”

Wang not only expressed concern about the long-term stability of the dollar; he also echoed an oft-repeated criticism of the US controlling the reserve currency. America uses the privilege as a foreign policy tool. For instance, in 2014 and 2015, the blocked several Russian banks from SWIFT as relations between the two countries deteriorated. Last fall, the US threatened to lock China out of the dollar system if it didn’t follow UN sanctions on North Korea. Wang said this needs to end.

It is a weapon for the US, but a source of insecurity for other countries. The currency the world ultimately chooses for global trade must not be one that gives someone privilege, while exposing others to insecurity.”

A gold standard that prevented central banks from manipulating the money supply would be ideal. Peter has said that the US went off the gold standard in 1971, but he thinks the world is going to go back on it.

The days where the dollar is the reserve currency are numbered and we’re going back to basics. You know, everything old is new again. Gold was money in the past and it will be money again in the future.”

Regardless of what form it takes, it seems likely that efforts to push the dollar off its perch will only increase. The powers that be in America should be concerned about their currencies future as the world reserve. And Americans should be concerned about the future purchasing power of their dollars.


Tyler Durden

Wed, 04/29/2020 – 19:45

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

“BU Investigating Whether Students Cheated on Online Exams”

So reports the Boston Globe (Deirdre Fernandes):

[O]n Saturday night, BU chemistry professor Binyomin Abrams sent an e-mail to one of his classes warning them that he had become aware of potential violations of the code of conduct and that there are consequences to cheating.

“We have learned that some of you have used various means, including websites such as Chegg [a tutoring and homework help service], to get help during the quizzes given remotely,” Abrams wrote. “Doing so is a clear violation of the academic conduct code.”

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“BU Investigating Whether Students Cheated on Online Exams”

So reports the Boston Globe (Deirdre Fernandes):

[O]n Saturday night, BU chemistry professor Binyomin Abrams sent an e-mail to one of his classes warning them that he had become aware of potential violations of the code of conduct and that there are consequences to cheating.

“We have learned that some of you have used various means, including websites such as Chegg [a tutoring and homework help service], to get help during the quizzes given remotely,” Abrams wrote. “Doing so is a clear violation of the academic conduct code.”

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Kentucky Attorney General vs. Kentucky Governor (and Kentucky District Court) in Church Shutdown Litigation

From Judge David J. Hale’s order in Maryville Baptist Church, Inc. v. Beshear (Apr. 18), rejecting a challenge to the Gov. Beshear’s shutdown order that included religious worship:

Plaintiffs first argue that the Governor’s orders amount to unconstitutional restrictions on their rights to free speech and assembly…. [T]o support their argument that the orders “are content-based restrictions on constitutionally protected liberties,” Plaintiffs appear to mischaracterize the Commonwealth’s prohibition on gatherings.

The order in question states in no uncertain terms that “[a]ll mass gatherings are hereby prohibited.” This prohibition applies not only to faith-based gatherings, but to “any event or convening that brings together groups of individuals, including, but not limited to, community, civic, public, leisure, … or sporting events; parades; concerts; festivals; conventions; fundraisers; and similar activities.” The “19 categories of businesses” allowed by subsequent order to continue operating are not, as Plaintiffs repeatedly suggest, exceptions to the prohibition on mass gatherings. Rather, by the plain terms of the March 19 Order, “[a]ll mass gatherings are … prohibited.”

Plaintiffs seek to compare in-person attendance at church services with presence at a liquor store or “supercenter store[].” The latter, however, is a singular and transitory experience: individuals enter the store at various times to purchase various items; they move around the store individually—subject to strict social-distancing guidelines set out by state and federal health authorities—and they leave when they have achieved their purpose. Plaintiffs’ desired church service, in contrast, is by design a communal experience, one for which a large group of individuals come together at the same time in the same place for the same purpose.

A more apt comparison, then, is a restaurant or entertainment venue—where patrons are gathered simultaneously for a longer period of time to eat and socialize—or a movie, concert, or sporting event, where individuals come together in a group in the same place at the same time for a common experience. And all such activities are temporarily prohibited.

Similarly unpersuasive is Plaintiffs’ contention that the orders violate their right to freely exercise their religion by discriminating against religious conduct. Again, the order temporarily prohibits “[a]ll mass gatherings,” not merely religious gatherings. Religious expression is not singled out. And further, contrary to Plaintiffs’ assertions, there are no identified exceptions to the prohibition on mass gatherings [such as for liquor, warehouse, and supercenter stores]. {In service of their argument, Plaintiffs make liberal use of the term “gather.” Merriam-Webster defines “gather” as “to come together in a body”; a “gathering” is an “assembly” or “meeting.” These terms do not, as generally understood, encompass separate, uncoordinated shopping trips by unrelated individuals. Presumably, no coordinated gathering in a grocery or liquor store would be permitted under the temporary restrictions.}

Finally, to the extent Plaintiffs argue that the orders violate the Kentucky Religious Freedom Restoration Act by substantially burdening the exercise of their sincerely held religious beliefs, the Court finds, based on the materials submitted by Plaintiffs, that the Governor will likely be able to meet the Act’s requirement of “clear and convincing evidence that [the government] has a compelling governmental interest in” the restrictions “and has used the least restrictive means to further that interest.” Plaintiffs do not contend that the Commonwealth lacks a compelling governmental interest in restricting mass gatherings to prevent the spread of COVID-19.

As to whether the Commonwealth has employed “the least restrictive means to further that interest,” Plaintiffs merely point to orders issued in other states that declared religious gatherings exempt from mass-gathering prohibitions. They offer no evidence that such exemptions are equally effective in preventing the spread of the disease. Given that COVID-19 is widely understood to be transmitted through person-to-person contact, including persons with and without symptoms of illness, Beshear will likely be able to demonstrate that restricting large in-person gatherings is the least restrictive means of accomplishing the Commonwealth’s objective.

Now, from the Kentucky AG’s friend-of-the-court brief for the Commonwealth in Maryville Baptist Church, Inc. v. Beshear, filed today, supporting plaintiffs’ motion for an injunction pending appeal:

On March 19, Governor Beshear banned Kentuckians from participating in all faith-based gatherings of any kind. Six days later, he ordered the closure of any business or organization that he does not consider “life-sustaining”—a vaguely defined term that includes newspapers, law firms, liquor stores, and hardware stores, but not churches, synagogues, or mosques. These restrictions apply no matter how large the gathering might be, no matter where the people might get together, and regardless of whether they practice safe social-distancing and good hygiene. This is unconstitutional….

The Court made two overarching errors in declining to grant a restraining order. First, the Court mistakenly found that Governor Beshear’s restrictions are neutral toward religion and generally applicable, overlooking well-established precedent to the contrary that requires the Court to “survey meticulously the circumstances”ofthecase.

Second, the Court mistakenly declared, without significant analysis, that the Governor’s orders are likely the “least restrictive means” of addressing the Covid-19 pandemic. And it did so despite the availability of clear, reasonable alternatives to such a sweeping prohibition, which other states currently use. Both errors merit this Court’s reconsideration and entry of an injunction pending appeal.

[I.] Governor Beshear’s executive orders target religious activity for disfavored treatment.

This case is primarily about two executive orders that Governor Beshear issued in response to the current Covid-19 pandemic. Together, these two orders amount to an outright ban on traditional, in-person religious services of any kind.

The first order, issued on March 19, prohibits “[a]ll mass gatherings.”  Unlike other states adopting similar measures, “mass gathering” is not defined. Rather, Governor Beshear vaguely describes the scope of his order as “includ[ing] any event or convening that brings together groups of individuals, including, but not limited to, community, civic, public, leisure, faith-based, or sporting events; parades; concerts; festivals; conventions; fundraisers; and similar activities.” The broad sweep of this prohibition is undeniable: It applies to gatherings of any number of people. It applies to gatherings in confined spaces as well as the outdoors. It applies to gatherings in which people remain 6 feet apart, and it applies to gatherings in which people drive up and never leave their cars. This order is written as broadly as possible, and it leaves no doubt that all “faith-based” gatherings are illegal.

That’s not to say, however, that the order is without exception. It in fact contains two. First, the order states that “a mass gathering does not include normal operations at airports, bus and train stations, medical facilities, libraries, shopping malls and centers, or other spaces where persons may be in transit.” Second, the order provides that a mass gathering “does not include typical office environments, factories, or retail or grocery stores where large numbers of people are present, but maintain appropriate social distancing.” Religious activities are not included in either exemption.

Six days after prohibiting the vaguely-defined-but-broadly-applicable “mass gatherings,” Governor Beshear issued an executive order closing all organizations that are not “life-sustaining.” “Life-sustaining” is defined in the order as any organization “that allow[s] Kentuckians to remain Healthy at Home.” It includes approximately 19 different categories of businesses and organizations. Religious organizations are not among them.

What does Governor Beshear consider life-sustaining? “Media,” is one example, which he defines as, “Newspapers, television, radio, and other media services.” Also included on the list are law firms, accounting services, real estate companies, liquor stores, and hardware stores.

The lone reference to religious organizations in the March 25 order allows for religious charities to continue operating to the extent that they “provid[e] food, shelter, and social services, and other necessities of life for economically disadvantaged or special populations, individuals who need assistance as a result of this emergency, and people with disabilities.” So while the order does not permit religious organizations to provide religious services to their parishioners and members, it does allow them to provide the kinds of services that the Governor has pre-approved.

Together, the March 19 and March 25 orders impose a sweeping prohibition against religious activity throughout every corner of the Commonwealth. Even though these same orders broadly permit individuals to crowd into hardware stores and law offices, or newsrooms, liquor stores and grocery stores, they do not permit people to attend religious services at a church, mosque, synagogue, or other house of worship, even if they follow social-distancing guidelines. This is, without question, an unconstitutional targeting of religious activity.

The Court mistakenly found that the executive orders do not target religious conduct because “[r]eligious expression is not singled out.”  It went on to state that “there are no identified exceptions to the prohibition on mass gatherings.” This is, respectfully, not accurate. As explained above, the mass-gathering ban permits gatherings in airports, grocery stories, office spaces, and other places “where large numbers of people are present.”

Only wordplay allows one to reach a different conclusion. The Court explained that to “gather” ordinarily means “to come together in a body,” and that a “gathering” is an “assembly” or “meeting.” So, the Court reasoned, “uncoordinated shopping trips by unrelated individuals” at a grocery store or liquor mart do not qualify.

That conclusion, however, overlooks a significant carve-out from the March 19 order. The order permits people to continue their daily routine in “typical office environments,” which surely includes “meetings” as the Court explains it. In a “typical office,” employees show up together, working for a common purpose during similar hours and often in close proximity. It is exactly the kind of coordinated activity that the Court says is a prohibited mass gathering. Yet the March 19 expressly exempts “typical office environments” from its coverage, while simultaneously singling out “faith-based” activities for no such exemption.

“If the law appears to be neutral and generally applicable on its face, but in practice is riddled with exemptions … the law satisfies the First Amendment only if it advances interests of the highest order and is narrowly tailored in pursuit of those interests.” Said another way, even orders that appear facially neutral are not treated as such when they are filled with exemptions for secular activities. Governor Beshear’s orders single out faith-based activities for prohibition, while simultaneously allowing similarly risky secular activities to continue. This is quintessential discrimination against religion requiring the state to meet the high burden of strict scrutiny.

Just as troubling is Governor Beshear’s refusal to define religious activity as “life-sustaining” for those Kentuckians with sincerely held beliefs about communal worship. Not every state has taken the same discriminatory path. Ohio, a state that has also implemented aggressive social-distancing protocols and shelter-in-place orders, recognized the danger in categorizing some activities as essential but excluding religion from that list …. Governor Beshear issued a similar order three days later, when he set out the 19 differentcategoriesof”life-sustaining”businessesthatcanremainopen.Whilemuch of the wording is the same, Governor Beshear excluded religious organizations from the list of permissibleactivity ….

The exclusion of religious organizations from the list of “life-sustaining” activities is no small matter. Governor Beshear has publicly declared that attending worship service is not life-sustaining, while allowing liquor stores and retailers to continue operating. It is mind-boggling discrimination. Or as the court noted in a similar case, “if beer is ‘essential,’ so is Easter.” On Fire Christian Ctr., 2020 WL 1820249, at *7. The fact that Governor Beshear has identified 19 categories of activities that are, in his judgment, more essential than in-person church services is proof positive of impermissible targeting of religious exercise.

{Nor does it lessen the discriminatory sting that Governor Beshear has recommended Kentuckians attend virtual services as an alternative. With respect, the point of the First Amendment is that Governor Beshear does not get to decide whether a virtual gathering is sufficient for every person of every faith. On this issue, Governor Beshear has gone remarkably far in dictating how Kentuckians should exercise their religion. At his Good Friday daily press conference, the Governor chastised people about what a true “test of faith” is. He proclaimed: “It is not a test of faith in whether you’re going to an in-person service, it’s a test of faith that you’re willing to sacrifice to protect your fellow man, your fellow woman, your fellow Kentuckian, and your fellow American.” Yet the First Amendment exists precisely to protect the beliefs of those who disagree.}

The thrust of the March 19 and March 25 orders are clear: Despite the First Amendment and Kentucky’s own uniquely strong protections for religious liberty, Governor Beshear has failed to adopt neutral or generally applicable laws to address the current crisis, instead choosing to target religious organizations for disfavored treatment. It is, “‘beyond all reason,’ unconstitutional.” On Fire Christian Ctr., 2020 WL 1820249, at *2 (quoting Jacobson v. Massachusetts, 197 U.S. 11, 31 (1905)).

[II.] The ban on religious worship is not narrowly tailored….

The First Amendment prohibits the government from burdening one’s “free exercise” of religion…. In practice, that means the government cannot implement laws “targeting religious beliefs as such.” But it also means that “[o]fficial action that targets religious conduct for distinctive treatment cannot be shielded by mere compliance with the requirement of facial neutrality.” Public officials, in other words, cannot target religion through selective enforcement of otherwise neutral laws. Rather, laws must be neutral and generally applicable in both text and reality to survive constitutional scrutiny. And “[a] law that targets religious conduct for distinctive treatment or advances legitimate governmental interests only against conduct with a religious motivation will survive strict scrutiny only in rare cases.”

No one doubts that the government has a compelling interest in preventing the spread of Covid-19 during the current pandemic. But so far, Governor Beshear has offered no explanation as to why it is necessary to prohibit religious activities that pose exactly the same risk as similar, non-religious activities. And in denying the Plaintiffs a temporary restraining order, this Court never even addressed the issue. Instead, the Court reasoned in a conclusory fashion that the Governor was likely to prevail in his assessment that the broad, ill-defined prohibitions against all religious gatherings are the least-restrictive means of prohibiting the spread of Covid-19.  That is, at best, highly implausible.

The error here is most pronounced in the Court’s assessment of what it means to “gather.” As the Court explains it, a “gathering” is distinct from an “uncoordinated shopping trip[] by unrelated individuals.” But presumably, the coronavirus does not care about whether people are “coordinating” or not. And it does not care whether they are in a store as friends, neighbors, or individuals. Rather, as the Court explained, Covid-19 “is widely understood to be transmitted through person-to-person contact,” regardless of whether those people came into contact in a “meeting” or in a grocery aisle. So the obvious, least-restrictive means of preventing the spread of Covid-19 is not to target the purpose for which people come into close contact, as Governor Beshear’s March 19 order does, but to target the close contact itself. By simply implementing the same social-distancing measures for religious gatherings as for liquor stores, retail chains, and offices, the Governor could achieve the same state interest in a less-restrictive manner.

In fact, the Court’s decision implicitly reveals just how imprecise and overbroad the March 19 order is. The Court held that “Beshear will likely be able to demonstrate that restricting large in-person gatherings is the least restrictive means of accomplishing the Commonwealth’s objective.” But the word “large” is nowhere to be found in the March 19 order’s definition of “mass gathering.” The term is used in defining one of the exemptions—”office environments … where large numbers of people are present.”

So in finding that Governor Beshear’s order is the least-restrictive means, the Court actually showed that there are additional ways in which Governor Beshear could restrict his order further. Presumably, for example, the order could permit small gatherings, or gatherings based upon the size of the space in which people meet. Could a congregation of ten individuals, for example, meet for worship in a large auditorium? Surely this would pose no more serious risk of transmitting the virus than an office where “large numbers of people are present.” But under the March 19 order, it is impermissible.

Moreover, there is ample evidence to suggest that broadly banning church services is not the least restrictive way of preventing further danger from Covid-19. Tennessee, for example, has not closed its places of worship. Yet Kentucky’s hospitalization rate for Covid-19 is more than twice that of Tennessee’s, and Tennessee has had 40 percent fewer deaths per capita. And to this date, Governor Beshear has failed to offer any evidence of any kind that closing religious services is more effective than mandatory strict social distancing.

And on the point of geography, Governor Beshear’s orders face other problems as well. Governor Beshear has insisted on maintaining a statewide lockdown that does not take into account varying infection rates in different places. Currently, there are 8 counties in Kentucky that have zero reported cases and another 56 counties that have between one and ten. While residents of Jefferson County are free to continue shopping at big box retailers and grocery stores, where they might run into countless strangers as they turn the corner of an aisle, residents in Harlan where there are no reported cases are forbidden from attending church on Sunday. It defies logic to label this as the least-restrictive means of stopping the spread of Covid-19.

Nor can Governor Beshear find support in Jacobson v. Massachusetts. Even under Jacobson, a law is invalid if “purporting to have been enacted to protect the public health, the public morals, or the public safety, [the law] has no real or substantial relation to those objects, or is, beyond all question, a plain, palpable invasion of rights secured by the fundamental law.” That is precisely the problem with Governor Beshear’s executive orders here. Singling out religious activity for disfavored treatment is the kind of “palpable invasion of rights” that even a pandemic cannot justify. On Fire Christian Ctr., 2020 WL 1820249, at *8 n.73.

[III.] Constitutional requirements aside, the Kentucky Religious Freedom Restoration Act requires enjoining the Governor’s orders.

Kentucky law could not be more clear: “Government shall not substantially burden a person’s freedom of religion.” “Burden” is defined to include “indirect burdens such as withholding benefits, assessing penalties, or an exclusion from programs or access to facilities.” There is no question that the worshippers of Maryville Baptist Church have been assessed a penalty due to their exercise of sincerely held religious beliefs—they were, after all, ordered to quarantine. There is also no question that the Governor’s orders burden “access” to the facilities of Maryville Baptist Church—the Governor has, after all, ordered that no one attend service at the church.

The question, then, is whether the Governor is likely to prove “by clear and convincing evidence that it has a compelling governmental interest in infringing the specific act or refusal to act and has used the least restrictive means to further that interest.” Rev. Stat. 446.350. He has not, and he cannot meet his evidentiary burden in light of his orders—particularly his decision to permit the continued operation of “typical office environments, factories, or retail or grocery stores where large numbers of people are present, but maintain social distancing.”

Simply put, permitting worshippers to attend a service where everyone typically remains in the same spot throughout (all the while social distancing) will logically place fewer Kentuckians within six feet of one another than shopping at a grocery store, hardware store, or other retail business where they will continuously pass one another, stand in line together, or bump into one another as they turn a corner. And that is not to mention that in such retail establishments shoppers will pick up and put back goods, push the same shopping carts, and touch the same credit card machines….

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Kentucky Attorney General vs. Kentucky Governor (and Kentucky District Court) in Church Shutdown Litigation

From Judge David J. Hale’s order in Maryville Baptist Church, Inc. v. Beshear (Apr. 18), rejecting a challenge to the Gov. Beshear’s shutdown order that included religious worship:

Plaintiffs first argue that the Governor’s orders amount to unconstitutional restrictions on their rights to free speech and assembly…. [T]o support their argument that the orders “are content-based restrictions on constitutionally protected liberties,” Plaintiffs appear to mischaracterize the Commonwealth’s prohibition on gatherings.

The order in question states in no uncertain terms that “[a]ll mass gatherings are hereby prohibited.” This prohibition applies not only to faith-based gatherings, but to “any event or convening that brings together groups of individuals, including, but not limited to, community, civic, public, leisure, … or sporting events; parades; concerts; festivals; conventions; fundraisers; and similar activities.” The “19 categories of businesses” allowed by subsequent order to continue operating are not, as Plaintiffs repeatedly suggest, exceptions to the prohibition on mass gatherings. Rather, by the plain terms of the March 19 Order, “[a]ll mass gatherings are … prohibited.”

Plaintiffs seek to compare in-person attendance at church services with presence at a liquor store or “supercenter store[].” The latter, however, is a singular and transitory experience: individuals enter the store at various times to purchase various items; they move around the store individually—subject to strict social-distancing guidelines set out by state and federal health authorities—and they leave when they have achieved their purpose. Plaintiffs’ desired church service, in contrast, is by design a communal experience, one for which a large group of individuals come together at the same time in the same place for the same purpose.

A more apt comparison, then, is a restaurant or entertainment venue—where patrons are gathered simultaneously for a longer period of time to eat and socialize—or a movie, concert, or sporting event, where individuals come together in a group in the same place at the same time for a common experience. And all such activities are temporarily prohibited.

Similarly unpersuasive is Plaintiffs’ contention that the orders violate their right to freely exercise their religion by discriminating against religious conduct. Again, the order temporarily prohibits “[a]ll mass gatherings,” not merely religious gatherings. Religious expression is not singled out. And further, contrary to Plaintiffs’ assertions, there are no identified exceptions to the prohibition on mass gatherings [such as for liquor, warehouse, and supercenter stores]. {In service of their argument, Plaintiffs make liberal use of the term “gather.” Merriam-Webster defines “gather” as “to come together in a body”; a “gathering” is an “assembly” or “meeting.” These terms do not, as generally understood, encompass separate, uncoordinated shopping trips by unrelated individuals. Presumably, no coordinated gathering in a grocery or liquor store would be permitted under the temporary restrictions.}

Finally, to the extent Plaintiffs argue that the orders violate the Kentucky Religious Freedom Restoration Act by substantially burdening the exercise of their sincerely held religious beliefs, the Court finds, based on the materials submitted by Plaintiffs, that the Governor will likely be able to meet the Act’s requirement of “clear and convincing evidence that [the government] has a compelling governmental interest in” the restrictions “and has used the least restrictive means to further that interest.” Plaintiffs do not contend that the Commonwealth lacks a compelling governmental interest in restricting mass gatherings to prevent the spread of COVID-19.

As to whether the Commonwealth has employed “the least restrictive means to further that interest,” Plaintiffs merely point to orders issued in other states that declared religious gatherings exempt from mass-gathering prohibitions. They offer no evidence that such exemptions are equally effective in preventing the spread of the disease. Given that COVID-19 is widely understood to be transmitted through person-to-person contact, including persons with and without symptoms of illness, Beshear will likely be able to demonstrate that restricting large in-person gatherings is the least restrictive means of accomplishing the Commonwealth’s objective.

Now, from the Kentucky AG’s friend-of-the-court brief for the Commonwealth in Maryville Baptist Church, Inc. v. Beshear, filed today, supporting plaintiffs’ motion for an injunction pending appeal:

On March 19, Governor Beshear banned Kentuckians from participating in all faith-based gatherings of any kind. Six days later, he ordered the closure of any business or organization that he does not consider “life-sustaining”—a vaguely defined term that includes newspapers, law firms, liquor stores, and hardware stores, but not churches, synagogues, or mosques. These restrictions apply no matter how large the gathering might be, no matter where the people might get together, and regardless of whether they practice safe social-distancing and good hygiene. This is unconstitutional….

The Court made two overarching errors in declining to grant a restraining order. First, the Court mistakenly found that Governor Beshear’s restrictions are neutral toward religion and generally applicable, overlooking well-established precedent to the contrary that requires the Court to “survey meticulously the circumstances”ofthecase.

Second, the Court mistakenly declared, without significant analysis, that the Governor’s orders are likely the “least restrictive means” of addressing the Covid-19 pandemic. And it did so despite the availability of clear, reasonable alternatives to such a sweeping prohibition, which other states currently use. Both errors merit this Court’s reconsideration and entry of an injunction pending appeal.

[I.] Governor Beshear’s executive orders target religious activity for disfavored treatment.

This case is primarily about two executive orders that Governor Beshear issued in response to the current Covid-19 pandemic. Together, these two orders amount to an outright ban on traditional, in-person religious services of any kind.

The first order, issued on March 19, prohibits “[a]ll mass gatherings.”  Unlike other states adopting similar measures, “mass gathering” is not defined. Rather, Governor Beshear vaguely describes the scope of his order as “includ[ing] any event or convening that brings together groups of individuals, including, but not limited to, community, civic, public, leisure, faith-based, or sporting events; parades; concerts; festivals; conventions; fundraisers; and similar activities.” The broad sweep of this prohibition is undeniable: It applies to gatherings of any number of people. It applies to gatherings in confined spaces as well as the outdoors. It applies to gatherings in which people remain 6 feet apart, and it applies to gatherings in which people drive up and never leave their cars. This order is written as broadly as possible, and it leaves no doubt that all “faith-based” gatherings are illegal.

That’s not to say, however, that the order is without exception. It in fact contains two. First, the order states that “a mass gathering does not include normal operations at airports, bus and train stations, medical facilities, libraries, shopping malls and centers, or other spaces where persons may be in transit.” Second, the order provides that a mass gathering “does not include typical office environments, factories, or retail or grocery stores where large numbers of people are present, but maintain appropriate social distancing.” Religious activities are not included in either exemption.

Six days after prohibiting the vaguely-defined-but-broadly-applicable “mass gatherings,” Governor Beshear issued an executive order closing all organizations that are not “life-sustaining.” “Life-sustaining” is defined in the order as any organization “that allow[s] Kentuckians to remain Healthy at Home.” It includes approximately 19 different categories of businesses and organizations. Religious organizations are not among them.

What does Governor Beshear consider life-sustaining? “Media,” is one example, which he defines as, “Newspapers, television, radio, and other media services.” Also included on the list are law firms, accounting services, real estate companies, liquor stores, and hardware stores.

The lone reference to religious organizations in the March 25 order allows for religious charities to continue operating to the extent that they “provid[e] food, shelter, and social services, and other necessities of life for economically disadvantaged or special populations, individuals who need assistance as a result of this emergency, and people with disabilities.” So while the order does not permit religious organizations to provide religious services to their parishioners and members, it does allow them to provide the kinds of services that the Governor has pre-approved.

Together, the March 19 and March 25 orders impose a sweeping prohibition against religious activity throughout every corner of the Commonwealth. Even though these same orders broadly permit individuals to crowd into hardware stores and law offices, or newsrooms, liquor stores and grocery stores, they do not permit people to attend religious services at a church, mosque, synagogue, or other house of worship, even if they follow social-distancing guidelines. This is, without question, an unconstitutional targeting of religious activity.

The Court mistakenly found that the executive orders do not target religious conduct because “[r]eligious expression is not singled out.”  It went on to state that “there are no identified exceptions to the prohibition on mass gatherings.” This is, respectfully, not accurate. As explained above, the mass-gathering ban permits gatherings in airports, grocery stories, office spaces, and other places “where large numbers of people are present.”

Only wordplay allows one to reach a different conclusion. The Court explained that to “gather” ordinarily means “to come together in a body,” and that a “gathering” is an “assembly” or “meeting.” So, the Court reasoned, “uncoordinated shopping trips by unrelated individuals” at a grocery store or liquor mart do not qualify.

That conclusion, however, overlooks a significant carve-out from the March 19 order. The order permits people to continue their daily routine in “typical office environments,” which surely includes “meetings” as the Court explains it. In a “typical office,” employees show up together, working for a common purpose during similar hours and often in close proximity. It is exactly the kind of coordinated activity that the Court says is a prohibited mass gathering. Yet the March 19 expressly exempts “typical office environments” from its coverage, while simultaneously singling out “faith-based” activities for no such exemption.

“If the law appears to be neutral and generally applicable on its face, but in practice is riddled with exemptions … the law satisfies the First Amendment only if it advances interests of the highest order and is narrowly tailored in pursuit of those interests.” Said another way, even orders that appear facially neutral are not treated as such when they are filled with exemptions for secular activities. Governor Beshear’s orders single out faith-based activities for prohibition, while simultaneously allowing similarly risky secular activities to continue. This is quintessential discrimination against religion requiring the state to meet the high burden of strict scrutiny.

Just as troubling is Governor Beshear’s refusal to define religious activity as “life-sustaining” for those Kentuckians with sincerely held beliefs about communal worship. Not every state has taken the same discriminatory path. Ohio, a state that has also implemented aggressive social-distancing protocols and shelter-in-place orders, recognized the danger in categorizing some activities as essential but excluding religion from that list …. Governor Beshear issued a similar order three days later, when he set out the 19 differentcategoriesof”life-sustaining”businessesthatcanremainopen.Whilemuch of the wording is the same, Governor Beshear excluded religious organizations from the list of permissibleactivity ….

The exclusion of religious organizations from the list of “life-sustaining” activities is no small matter. Governor Beshear has publicly declared that attending worship service is not life-sustaining, while allowing liquor stores and retailers to continue operating. It is mind-boggling discrimination. Or as the court noted in a similar case, “if beer is ‘essential,’ so is Easter.” On Fire Christian Ctr., 2020 WL 1820249, at *7. The fact that Governor Beshear has identified 19 categories of activities that are, in his judgment, more essential than in-person church services is proof positive of impermissible targeting of religious exercise.

{Nor does it lessen the discriminatory sting that Governor Beshear has recommended Kentuckians attend virtual services as an alternative. With respect, the point of the First Amendment is that Governor Beshear does not get to decide whether a virtual gathering is sufficient for every person of every faith. On this issue, Governor Beshear has gone remarkably far in dictating how Kentuckians should exercise their religion. At his Good Friday daily press conference, the Governor chastised people about what a true “test of faith” is. He proclaimed: “It is not a test of faith in whether you’re going to an in-person service, it’s a test of faith that you’re willing to sacrifice to protect your fellow man, your fellow woman, your fellow Kentuckian, and your fellow American.” Yet the First Amendment exists precisely to protect the beliefs of those who disagree.}

The thrust of the March 19 and March 25 orders are clear: Despite the First Amendment and Kentucky’s own uniquely strong protections for religious liberty, Governor Beshear has failed to adopt neutral or generally applicable laws to address the current crisis, instead choosing to target religious organizations for disfavored treatment. It is, “‘beyond all reason,’ unconstitutional.” On Fire Christian Ctr., 2020 WL 1820249, at *2 (quoting Jacobson v. Massachusetts, 197 U.S. 11, 31 (1905)).

[II.] The ban on religious worship is not narrowly tailored….

The First Amendment prohibits the government from burdening one’s “free exercise” of religion…. In practice, that means the government cannot implement laws “targeting religious beliefs as such.” But it also means that “[o]fficial action that targets religious conduct for distinctive treatment cannot be shielded by mere compliance with the requirement of facial neutrality.” Public officials, in other words, cannot target religion through selective enforcement of otherwise neutral laws. Rather, laws must be neutral and generally applicable in both text and reality to survive constitutional scrutiny. And “[a] law that targets religious conduct for distinctive treatment or advances legitimate governmental interests only against conduct with a religious motivation will survive strict scrutiny only in rare cases.”

No one doubts that the government has a compelling interest in preventing the spread of Covid-19 during the current pandemic. But so far, Governor Beshear has offered no explanation as to why it is necessary to prohibit religious activities that pose exactly the same risk as similar, non-religious activities. And in denying the Plaintiffs a temporary restraining order, this Court never even addressed the issue. Instead, the Court reasoned in a conclusory fashion that the Governor was likely to prevail in his assessment that the broad, ill-defined prohibitions against all religious gatherings are the least-restrictive means of prohibiting the spread of Covid-19.  That is, at best, highly implausible.

The error here is most pronounced in the Court’s assessment of what it means to “gather.” As the Court explains it, a “gathering” is distinct from an “uncoordinated shopping trip[] by unrelated individuals.” But presumably, the coronavirus does not care about whether people are “coordinating” or not. And it does not care whether they are in a store as friends, neighbors, or individuals. Rather, as the Court explained, Covid-19 “is widely understood to be transmitted through person-to-person contact,” regardless of whether those people came into contact in a “meeting” or in a grocery aisle. So the obvious, least-restrictive means of preventing the spread of Covid-19 is not to target the purpose for which people come into close contact, as Governor Beshear’s March 19 order does, but to target the close contact itself. By simply implementing the same social-distancing measures for religious gatherings as for liquor stores, retail chains, and offices, the Governor could achieve the same state interest in a less-restrictive manner.

In fact, the Court’s decision implicitly reveals just how imprecise and overbroad the March 19 order is. The Court held that “Beshear will likely be able to demonstrate that restricting large in-person gatherings is the least restrictive means of accomplishing the Commonwealth’s objective.” But the word “large” is nowhere to be found in the March 19 order’s definition of “mass gathering.” The term is used in defining one of the exemptions—”office environments … where large numbers of people are present.”

So in finding that Governor Beshear’s order is the least-restrictive means, the Court actually showed that there are additional ways in which Governor Beshear could restrict his order further. Presumably, for example, the order could permit small gatherings, or gatherings based upon the size of the space in which people meet. Could a congregation of ten individuals, for example, meet for worship in a large auditorium? Surely this would pose no more serious risk of transmitting the virus than an office where “large numbers of people are present.” But under the March 19 order, it is impermissible.

Moreover, there is ample evidence to suggest that broadly banning church services is not the least restrictive way of preventing further danger from Covid-19. Tennessee, for example, has not closed its places of worship. Yet Kentucky’s hospitalization rate for Covid-19 is more than twice that of Tennessee’s, and Tennessee has had 40 percent fewer deaths per capita. And to this date, Governor Beshear has failed to offer any evidence of any kind that closing religious services is more effective than mandatory strict social distancing.

And on the point of geography, Governor Beshear’s orders face other problems as well. Governor Beshear has insisted on maintaining a statewide lockdown that does not take into account varying infection rates in different places. Currently, there are 8 counties in Kentucky that have zero reported cases and another 56 counties that have between one and ten. While residents of Jefferson County are free to continue shopping at big box retailers and grocery stores, where they might run into countless strangers as they turn the corner of an aisle, residents in Harlan where there are no reported cases are forbidden from attending church on Sunday. It defies logic to label this as the least-restrictive means of stopping the spread of Covid-19.

Nor can Governor Beshear find support in Jacobson v. Massachusetts. Even under Jacobson, a law is invalid if “purporting to have been enacted to protect the public health, the public morals, or the public safety, [the law] has no real or substantial relation to those objects, or is, beyond all question, a plain, palpable invasion of rights secured by the fundamental law.” That is precisely the problem with Governor Beshear’s executive orders here. Singling out religious activity for disfavored treatment is the kind of “palpable invasion of rights” that even a pandemic cannot justify. On Fire Christian Ctr., 2020 WL 1820249, at *8 n.73.

[III.] Constitutional requirements aside, the Kentucky Religious Freedom Restoration Act requires enjoining the Governor’s orders.

Kentucky law could not be more clear: “Government shall not substantially burden a person’s freedom of religion.” “Burden” is defined to include “indirect burdens such as withholding benefits, assessing penalties, or an exclusion from programs or access to facilities.” There is no question that the worshippers of Maryville Baptist Church have been assessed a penalty due to their exercise of sincerely held religious beliefs—they were, after all, ordered to quarantine. There is also no question that the Governor’s orders burden “access” to the facilities of Maryville Baptist Church—the Governor has, after all, ordered that no one attend service at the church.

The question, then, is whether the Governor is likely to prove “by clear and convincing evidence that it has a compelling governmental interest in infringing the specific act or refusal to act and has used the least restrictive means to further that interest.” Rev. Stat. 446.350. He has not, and he cannot meet his evidentiary burden in light of his orders—particularly his decision to permit the continued operation of “typical office environments, factories, or retail or grocery stores where large numbers of people are present, but maintain social distancing.”

Simply put, permitting worshippers to attend a service where everyone typically remains in the same spot throughout (all the while social distancing) will logically place fewer Kentuckians within six feet of one another than shopping at a grocery store, hardware store, or other retail business where they will continuously pass one another, stand in line together, or bump into one another as they turn a corner. And that is not to mention that in such retail establishments shoppers will pick up and put back goods, push the same shopping carts, and touch the same credit card machines….

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“It’s Just A Mess”: Over 200,000 H-1B Workers Risk Losing Legal Status In The US By June

“It’s Just A Mess”: Over 200,000 H-1B Workers Risk Losing Legal Status In The US By June

More than 200,000 people who are in the United States on an H-1B visa, which is a temporary work visa for people with specialized skills, could soon seen their status in the U.S. turn to “illegal”. 

One perfect example is Manasi Vasavada, who has worked at a NJ dental practice for almost two years. She has been on unpaid leave of absence since it closed in March. Her husband Nandan Buch is a dentist and the couple may not be able to stay in the U.S. – but can’t go back to their native India, which has also closed its borders.

Meanwhile, the couple has racked up $520,000 in student loans for advanced dental degrees in the U.S. 

“Everything is really confusing and dark right now. We don’t know where we will end up,” Vasavada told Bloomberg

And they are just a microcosm of the 200,000 guest workers in the U.S. that could be facing similar problems. Their legal status could be in jeopardy by the end of June and thousands more who are not seeking resident status could be forced home. About 75% of these visas go to the technology industry.

Already over 20 million Americans have lose their jobs of the last two months. But visa workers are tied to specific locations and being furloughed violates the requirements of their visas. If terminated, they have 60 days to find another job, transfer to another visa or leave the country. Even without losing their jobs, its sometimes difficult to get a visa renewal done in 60 days.

Doug Rand, who co-founded Boundless Immigration Inc., a company that helps people navigate the immigration system, called the impact of the virus a “catastrophe at a human level and an economic level.”

“It’s just a mess,” he continued.

A lobbying group that represents Apple, Amazon, Facebook, Google and Microsoft sent a letter to the State and Homeland Security departments on April 17 urging for relief for foreign born workers. The letter specifically requested a delay in work authorization expiration dates until September 10. 

The letter said: “Without action, these issues will lead to hundreds of thousands of unfilled jobs and have profound negative economic effects.”

Some companies are even choosing to furlough U.S. born workers and fire foreign employees whose visas require that they are paid. Other companies are keeping H-1B workers on staff to maintain their legal status while firing U.S. workers. 

The Trump administration, which has consistently taken a hard-line approach to immigration, has not responded to the letter yet. Non-immigrant visas have declined from 10.9 million in 2015 to 8.7 million in 2019, falling for four straight years. Last month, the administration shut down embassies and consulates with little to know guidance for people who risk losing their visas.

Meanwhile, in-person services at U.S. Citizenship and Immigration Services, are suspended until at least June 4. 


Tyler Durden

Wed, 04/29/2020 – 19:30

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MSNBC Attacks Trump For Using The DPA After Criticizing Trump For Not Using The DPA

MSNBC Attacks Trump For Using The DPA After Criticizing Trump For Not Using The DPA

Authored by Jonathan Turley,

President Donald Trump has used the Defense Production Act to ensure beef, pork, poultry and egg plants keep operating to avoid a food shortage. 

That did not sit well with MSNBC Chris Hayes who objected to Trump using the DPA after blasting Trump for not using the DPA.  For weeks, I have been raising what I view as a widespread misconception of the DPA and its function.  This is an example of how the DPA has become part of a media mantra to suggest that the Administration refused to use the Act when it could have addressed shortfalls.  This spin redirects the primary responsibility for the failure to prepare for a pandemic from governors, who ignored years of warnings of shortfalls and lack of stored material.  There are legitimate questions about mistakes made in this pandemic but the DPA has increasingly been used in a way disconnected from factual and legal foundations.

Hayes objects that the Trump Administration failed to use the DPA to force production of ventilators and other items. However, as I have said previously, there is no reason to use the DPA if the Administration believes that companies are at maximum input.  One legitimate objection that the Administration has made about the coverage is the widespread misrepresentations of the ventilator issue.  Dr. Deborah Birx and others have noted that no one was actually denied a ventilator and that states had a surplus.  We are currently producing an astonishing level of ventilators that far exceeds our expected needs by a sizable degree.

The point is that the DPA moves away obstacles or motivates companies when needed.  If companies are cooperating and meeting maximum projections, there is no reason to use the DPA.  The Administration has used the DPA in other areas to remove or motivate.  Clearly the Administration could have used DPS on everyone and everything to negate these criticisms.  However, it would simply create new levels of bureaucratic control and serve little real purpose if the companies are responding to government demands.  In this hue and cry over the DPA, there is a lack of specifics in how these companies would increase their effort further or what contractual obstacles need to be removed.

The latest DPA is a classic use of the Act.  The country has already faced panic buying on items like toilet paper.  Much of this trend is entirely irrational.  There was no reason why toilet paper should be the focus of panic buying but the result was a real shortage.  The chances of a panic buying on food is far far more serious.  There is already a drop of 25% in the food supply from these industries.  It could drop further.  The result is a serious threat to the nation as a whole in supplying the most basic necessity for life.

What is interesting about this use of the DPA is that it may be most valued due to its impact on liability.  By being forced to stay open, the companies can claim that they were not negligent because they were compelled to operate.  The question will be whether workers can be fired for refusing to work.  They cannot be forced to do so but could face threats over a refusal to work despite the obvious risk to them.

This is a real threat to the nation.  At a time of short food supply, we are seeing tens of thousands of animals slaughtered due to the reduction in processing It is not just confined to these meat plants and the virus outbreak among the work force.  We are seeing food destroyed due to interruptions in the supply chain or other market problems.  This is occurring when food banks are overwhelmed.  (This is an area where the government needs to act to pay farmers to allow for donations to food banks).

I remain highly suspicious of the failure of these companies to better protect workers.  These are startling numbers of affected workers and deaths.  The obvious response of the Administration should be to follow up with a greater federal presence in the operation and safety of these plants.  The Administration needs to bring federal resources and expertise to these plants to protect workers.

However, the use of the DPA to protect the food supply is exactly the type of national emergency that the Act was designed to address. 

The MSNBC  attack reflects a curious pattern in the media where it moves effortlessly in adopting diametrically opposed positions. The only common denominator is the target of the coverage.  For months the media decried the Administration for not taking control of the pandemic and state efforts despite some of us noting that this is a primary state responsibility. Then when Trump, wrongly, claimed that he could take control, the media cried foul that this is a violation of states rights.  Likewise, the media objected that the Trump Administration was not using its authority to grab needed PPEs and other materials. However, when the Administration started to grad such material and distribute them to hot spots, the media criticized the Administration for interfering with states from getting such material.  Now the Administration is blamed for using the DPA after being chastised for not using the DPA.  The most remarkable thing about this pattern of flips is the absolute ease with which it has occurred.

None of this is meant to clear the Administration. Many questions remain about early warnings and early actions. That includes the possible use (including DPA orders) on mask and PPE production. However, there has also been some remarkable successes. FEMA and the Army Corps of Engineers have done phenomenal jobs in ramping up production and building needed beds and resources. The speed of industry and government to address new therapeutics and treatments is also amazing.  As I have said before, the need for fair coverage has never been greater.  We should not paint with too broad a brush. Much coverage remains excellent and informative.  However, there is a clear agenda or bias in some of this coverage on issues like the DPA.  This bias can become outright misinformation on legal issues in pandemic from criminal claims to constitutional criticisms.    News coverage should have greater consistency than just the target of criticism.


Tyler Durden

Wed, 04/29/2020 – 19:10

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German Infection Rate Spikes After Merkel Eases Lockdown

German Infection Rate Spikes After Merkel Eases Lockdown

Despite German Chancellor Angela Merkel’s insistence that Germany proceed cautiously with its reopening, only to have the process somewhat abruptly accelerated by German industry, including the operators of the world’s biggest auto plant in Wolfsburg, Germany, the first numbers on the German reopening are in, and the results are more than a little discouraging.

German public health officials have reported an uptick in the average infection rate of the virus within Germany – a rate known as “R-naught” – that cannot be ignored. Before Germany started allowing some more stores to reopen on April 20, officials said that if the R0 rate advanced back above “1”, that some lockdown measures might need to be reimposed.

After retreating to a low of 0.7 earlier this month, R0 jumped to 0.96 on Wednesday, according to a report released by the German government. Though officials insisted that it’s still too early to say whether the decision to lift some restrictions is responsible for the uptick, it certainly would be a whole lot more convenient if it had moved the other way.

The number of new cases in Germany increased by 1,018 on Monday, capping off five straight days of decline, before bouncing to 1,144 on Tuesday.

A top disease control expert from Germany’s Robert Koch Institute, a German federal agency charged with overseeing the response, said the reproduction rate is a critical metric for measuring the effectiveness of the rollback, as well as any emerging risks.

Lothar Wieler, head of Germany’s disease control centre the Robert Koch Institute, stressed the importance of the reproduction rate. “The number should stay below one, that is the big goal,” he told a news conference.

“The further it is below one, the more secure we can feel, the more leeway we have, but there are other numbers that are also important,” he said, adding that these included the number of cases per day, and testing capacity.

He urged people to continue complying with social distancing guidelines, wearing masks on public transport and in shops, and staying at home where possible.

“Against the background of the easing (of restrictions), let’s ensure we can continue to defend this success we have achieved together,” he said.

“We don’t want the number of cases to rise again. Let’s, insofar as is possible, stay at home, let’s stick to the reduced contact.”

160,000 Germans have been infected by the coronavirus, leading to 6,000 deaths compared to more than 20,000 who have died after contracting COVID-19 in the UK.

Education ministers of Germany’s 16 federal states agreed on Tuesday that schools across the country would slowly reopen classes for all ages until the summer holidays, although pupils would have to work and learn in smaller groups.

“There will be no regular classes before the summer holidays,” said Stefanie Hubig, head of the ministerial council for education.

Retailers with floor space of up to 800 sq meters were allowed to reopen last week, along with car and bicycle dealers, and bookstores. All open retailers were required to practice strict social distancing rules, although in retrospect some may not have taken the advice seriously. 

Chancellor Angela Merkel will discuss the next steps for the easing of lockdown restrictions in a telephone conference with the state premiers on Thursday. Meanwhile, NY Gov Andrew Cuomo brought up the situation in Germany during his press conference on Wednesday, arguing that the jump in the infection rate had given him pause and was yet another reason why NY must make take an extremely measured approach.


Tyler Durden

Wed, 04/29/2020 – 18:45

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Majority Of Canadians Think COVID-19 Vaccine Should be Mandatory, New Poll Shows

Majority Of Canadians Think COVID-19 Vaccine Should be Mandatory, New Poll Shows

Authored by Paul Joseph Watson via Summit News,

A new poll finds that the majority of Canadians – 60 per cent – think that when a vaccine for coronavirus becomes available it should be made mandatory.

The survey, conducted by Leger and the Association for Canadian Studies, found that “60 per cent of respondents believe people should be required to get the vaccine once it is ready.”

40 per cent think it should be voluntary.

Leger executive vice-president Christian Bourque said he was surprised support for a mandatory vaccine wasn’t even higher.

“It’s almost as if it’s seen as just another flu vaccine,” Bourque told The Canadian Press.

“I myself would have expected a higher number given the severity, given the crisis we’re in. But Canadians are kind of divided on this.”

Many experts have suggested that a vaccine may not even be successful due to the nature of the coronavirus family and the fact that it can mutate.

As we highlighted yesterday, one of the faces of Canada’s response to the coronavirus outbreak also appears to support punishing people who refuse to take the vaccine.

Canada’s current Chief Public Health Officer Theresa Tam appeared in a 2010 documentary in which she asserted that vaccine refusniks should be put under constant surveillance via electronic tagging.

“If there are people who are non-compliant, there are definitely laws and public health powers that can quarantine people in mandatory settings,” said Tam.

“It’s potential you could track people, put bracelets on their arms, have police and other set ups to ensure quarantine is undertaken,” she added.

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Tyler Durden

Wed, 04/29/2020 – 18:40

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As Detroit Automakers Target A May 18 Re-Open Date, Confusion Still Looms

As Detroit Automakers Target A May 18 Re-Open Date, Confusion Still Looms

Detroit’s major auto manufacturers have set their eyes on a date for re-opening: May 18.

GM, Ford and Fiat are all looking to mid-May to resume production at their U.S. factors after settling on a date with the United Auto Workers and Michigan’s governor, Gretchen Whitmer, according to the Wall Street Journal

Last week, the UAW had raised concerns about re-opening factories early next month, stating that it wouldn’t provide enough time for the companies to develop safety protocols necessary to prevent the risk of coronavirus infection. The union remains in talks with the companies on such safety protocols and the two parties have “made progress” in recent days. 

A Ford spokeswoman said: “We are continuing to assess public health conditions, government guidelines and supplier readiness to determine when the time is right to resume production.”

The auto companies will be providing protective gear for workers when they return and will look to implement social distancing protocols in their plants. 

Governor Gretchen Whitmer extended a stay-at-home order through May 15 last week. There’s no word on whether she plans on extending the order and/or whether or not auto makers could be considered “essential” exempt businesses from any additional order.

The auto makers would use the May 18 date to re-start production at all U.S. factories, not just in Detroit, despite some states’ orders lifting sooner than May 15.

Many of the auto suppliers necessary for the automakers to restart production also remain in a state of limbo. They are unsure whether or not they will be able to legally run their assembly lines or recall workers by the time the automakers will need them too. 

Detroit has been closed since about March 20, when positive coronavirus cases began to pop up at production facilities and the rest of the country shut down. Dealerships have continued to sell vehicles using sharply reduced prices and heavy discounts. The plant shutdowns, however, have still choked off revenue due to the fact that most automakers recognize revenue after cars leave the plant, on their way to the dealership. 

Foreign automakers are looking to restart production sooner, with Toyota seeking to go back to factory work on May 4 and Honda targeting May 8. 

Over the last 6 weeks, we have been reporting on how the global auto market has been at a standstill since the world has been on coronavirus lockdown. For instance, just yesterday, we reported that auto sales and registrations in Italy were down by an astounding 98% in April. 


Tyler Durden

Wed, 04/29/2020 – 18:25

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