Stocks Scream To “Most Expensive Ever” In Greatest Month Since ’87

Stocks Scream To “Most Expensive Ever” In Greatest Month Since ’87

US stocks have exploded higher in April… (ended weak on what many suspect is simple rebalance flows)

This is the best month for the S&P 500 since January 1987 (and was the best since 1974’s 13.17% gain until today’s drop)

Despite the loss of over 30mm jobs…

Despite the collapse in economic data (far worse than expected)…

Source:Bloomberg

Despite a plunge in earnings expectations…

Source:Bloomberg

Oh and Despite an ongoing surge in COVID Deaths…

Source:Bloomberg

As Avenue Capital’s Marc Lasry shockingly told CNBC:

“none of this [equity rally] is based on fundamentals, this is all about what The Fed is doing… and sooner or later reality will reassert itself.”

Source:Bloomberg

So, everything is awesome?

Well, Jim Bianco warns  that any recovery from here will be “slow and long” and adds that:

“I understand the market has been up a lot since the March low. But what I see in the market is a retracement rally that looks very similar to the first type of rallies that you get in protracted bear markets.”

Bianco added, ominously that:

“we’ll revisit the 2,200 S&P low, if not make a lower low – probably by late summer,” he said.

“That’s going to come because we’re going to find out now is a critical time for the market.”

Oh and in case you were thinking of buying the dip, Warren Buffett’s favorite stock market indicator is signaling “sell, mortimer, sell” as it pushes to its most expensive ever…

The Dollar is unch in April, bonds are barely higher (in price), Gold showed some gains (as oil crashed), but stocks were panic-bid…

Source:Bloomberg

After a mid-month meltdown after earnings, bank stocks all managed gains in April…

Source:Bloomberg

Virus-impacted sectors were mixed with airlines ugly but cruise lines positive…

Source:Bloomberg

Overall, the “virus-fear” trade eased off in April…

Source:Bloomberg

Despite stock market gains, bonds ended the month lower in yield, led by the long-end (all despite massive Fed-sponsored corporate issuance)…

Source:Bloomberg

However, today’s late-day spike in rates, once again recoupled them with stocks briefly…

Source:Bloomberg

The Dollar ended the month lower, thanks to 5 straight down days…

Source:Bloomberg

And as the dollar dipped, Bitcoin soared to test $9,500 intraday today…

Source:Bloomberg

It was a big month for all of crypto with Ethereum best…

Source:Bloomberg

Commodities were mixed with crude collapsing (chart shows the June contract – the May contract was down 300% at its worst) as gold, silver, and copper rallied in April…

Source:Bloomberg

Gold futures were clubbed back below $1700 as the end of month gold-dump played out once again…

Silver was also hit today to end the month on the downswing…

WTI was a bloodbath…

It would appear the new normal post-COVID is an economy that does not require commodities…

Source:Bloomberg

Finally, as Bloomberg notes, the Nasdaq Stock Market’s biggest companies may have reached a “major top” relative to the smaller ones that make up the Russell 2000 Index, according to David Halloran, director of portfolio strategies at Greenwood Capital Associates LLC.

Source:Bloomberg

Halloran cited the ratio between the Invesco QQQ exchange-traded fund, tracking the Nasdaq-100 Index, and the iShares Russell 2000 ETF in an email Wednesday. The ratio fell 11% between April 16 and Wednesday after surging 42% earlier in the year, according to data compiled by Bloomberg. At its high, the ratio came within 4% of a record set in September 2000.

As The Fed continues to taper its bond-buying (quietly), we enter the month of May with nothing but hope holding stocks up. We give Jim Bianco the last words…

“What the market seems to be thinking is we’re going to restart, and we’re all going to pretend that it’s 2019,” said Bianco.

“And, we’re all going to stand on the subway platform with 500 other people waiting for the next train.”

“We are moving to a lower growth environment, and I think the market is a little ahead of itself right now in what that means,” Bianco said.

“There’s going to be more changes and more evolution that the economy is going to have to go through before we’re ready to start a full on bull market.”

It seems for now that the Boomers are panicking…

Oh and one more thing – AAPL tonight… and it’s all about fundamentals, NOT!

Source:Bloomberg


Tyler Durden

Thu, 04/30/2020 – 16:00

via ZeroHedge News https://ift.tt/35lYmjB Tyler Durden

A Formerly Secret Memo Explains the DEA’s Long Delay in Approving New Producers of Marijuana for Research

Since the Drug Enforcement Administration (DEA) was founded in 1973, it has allowed only one entity to produce marijuana for research: the National Center for Natural Products Research at the University for Mississippi, which grows cannabis under a contract with the National Institute on Drug Abuse (NIDA). According to a newly disclosed 2018 memo, the Justice Department’s Office of Legal Counsel (OLC) thinks that 47-year-old arrangement has always been illegal.

The OLC does not think this marijuana monopoly is too restrictive. It thinks the arrangement is not restrictive enough.

The memo, which says an international treaty requires tighter controls on the production and distribution of marijuana, explains why the DEA has been so slow in following through on a 2016 commitment to allow alternatives to NIDA’s supply. The DEA agreed to disclose the memo yesterday as part of a settlement agreement with Arizona’s Scottsdale Research Institute (SRI), which is investigating marijuana’s potential as a treatment for post-traumatic stress disorder.

For decades, medical researchers have complained about the quality and variety of the marijuana provided by NIDA, which is notably inferior to the offerings of state-licensed dispensaries on both counts. SRI President Sue Sisley found that the marijuana she was compelled to use for her federally approved PTSD study was a “powdery mishmash of stems, sticks and leaves.” Laboratory tests detected relatively high levels of mold, which the researchers ultimately decided did not pose a threat to the subjects. The tests also found that the THC and CBD concentrations were not quite what NIDA had promised, which already was not quite what the researchers had wanted.

NIDA’s monopoly also creates an insurmountable obstacle for anyone planning to market cannabis as a medicine, since the marijuana it supplies cannot be used for commercial purposes. The Food and Drug Administration, meanwhile, requires that clinical studies be conducted with the same product that would be used by patients if the drug is approved.

The solution to these problems seems obvious: Instead of requiring researchers to use inferior marijuana from a government-created monopoly, allow competing producers to suppy what scientists actually want. But while the DEA has long permitted more than one organization to produce other Schedule I substances for research, marijuana was always an exception.

The Multidisciplinary Association for Psychedelic Studies, together with University of Massachusetts horiticulturist Lyle Craker, began trying to break NIDA’s monopoly in 2001, and it obtained a favorable ruling from an administrative law judge in 2007. But Michele Leonhart, then the DEA’s acting administrator, overrode that decision in 2009, and Craker could not persuade federal courts to intervene.

All of that seemed to change in August 2016, when the DEA announced that it would begin accepting applications from additional marijuana suppliers. Three dozen would-be producers sought the DEA’s approval, but their applications seemed to go nowhere, notwithstanding multiple, bipartisan inquiries from members of Congress and a 2019 order by a federal appeals court demanding that the DEA explain itself. Press reports suggested that the DEA had encountered resistance from the new attorney general, Jeff Sessions, an old-fashioned drug warrior who as a senator had famously declared that “good people don’t smoke marijuana.”

In April 2018, Sessions testified that the DEA and the DOJ were “moving forward” with the licensing process but alluded to an “international treaty” that required revision of “the previous proposal.” Two months later, the OLC issued its memo, in which Deputy Assistant Attorney General Henry Whitaker fleshes out what Sessions had in mind.

Breaking with nearly half a century of policy under administrations of both parties, Whitaker concludes that the federal government’s handling of research marijuana is inconsistent with the Single Convention on Narcotic Drugs of 1961, an international treaty that the Senate approved in 1967. Three years later, Congress incorporated the Single Convention’s requirements into parts of the Controlled Substances Act. The Single Convention allows the cultivation of marijuana for scientific or medical purposes, but it requires that it be done in accordance with the same restrictions that apply to opium poppies.

Among other things, those rules require that “a single government agency” oversee cultivation and “take physical possession of such crops as soon as possible, but not later than four months after the end of the harvest.” The Single Convention also requires that the agency “have the exclusive right of importing, exporting, wholesale trading and maintaining stocks other than those held by manufacturers” of medical products. Whitaker concludes that the longstanding DEA/NIDA arrangement with the University of Mississippi’s marijuana growers does not meet those requirements.

First, the program involves more than one federal agency: While the DEA, a division of the Justice Department, licenses the University of Mississippi’s marijuana growers, NIDA, part of the Department of Health and Human Services, oversees production. Second, the DEA never “take[s] physical possession” of the crops, which the National Center for Natural Products Research ships directly to scientists approved by NIDA. Third, the DEA does not have “exclusive right[s]” when it comes to “wholesale trading and maintaining stocks,” which are handled by the center under NIDA’s supervision.

Whitaker concedes that the International Narcotics Control Board, which is supposed to monitor compliance with the Single Convention, has never objected to the U.S. marijuana program or to similar arrangements in other countries. But he says the treaty’s requirements, which are mandatory under the Controlled Substances Act, clearly rule out the current approach.

The OLC’s position clarifies the motivation for the little-noticed marijuana regulations that the DEA published on March 23. According to the summary of the proposed rule, the DEA wants to “amend its regulations to comply with the requirements of the Controlled Substances Act, including consistency with treaty obligations, in order to facilitate the cultivation of marihuana for research purposes and other licit purposes.” The DEA noted that the Justice Department “undertook a review of the CSA, including the provisions requiring consistency with obligations under international treaties such as the Single Convention, and determined that certain changes to its 2016 policy were needed.”

Under the proposed rule, “all registered manufacturers who cultivate cannabis shall deliver their total crops of cannabis to DEA.” It adds that the DEA “may accept delivery and maintain possession of such crops at the registered location of the registered manufacturer authorized to cultivate cannabis consistent with the maintenance of effective controls against diversion.” In other words, the DEA is still reading “physical possession” as requiring something short of what that phrase seems to imply. “If DEA determines that no suitable location exists at the registered location of the registered manufacturer authorized to cultivate cannabis,” the rule says, “then DEA shall designate a location for the authorized grower to deliver the crop.”

Similarly, the DEA plans to assert its “exclusive right” over “importing, exporting,
wholesale trading, and maintaining stocks,” which “shall not extend to medicinal cannabis or cannabis preparations,” by “authorizing the performance of such activities by appropriately registered persons.” Their transactions must have the DEA’s “express written authorization.”

The upshot is that the DEA plans to insert itself as a middleman in the distribution of marijuana for research, although it’s not clear how much more onerous that arrangement will be than the current DEA/NIDA system. In a letter she sent members of Congress yesterday, SRI’s Sisley criticizes a “highly irregular administrative process” based on “a secret re-interpretation of an international treaty from 1961.” She notes that Congress could streamline production and distribution of research marijuana through new legislation. But she also argues that the DEA could use a different provision of the Controlled Substances Act to achieve a similar result.

That provision says “the Attorney General may, by regulation, waive the requirement for registration of certain manufacturers, distributors, or dispensers if he finds it consistent with the public health and safety.” Unlike the part of the law that the OLC was interpreting, Sisley notes, this provision “does not mention international treaty obligations.” Given “the undisputed urgency of the need for this research,” she argues, “waiving certain registration requirements to allow already-licensed Schedule I researchers obtain marijuana” from other sources “would be ‘consistent with the public health and safety.'”

Sisley suggests the DEA could, for example, “exempt licensed Schedule I marijuana researchers from having to obtain a separate registration to manufacture marijuana, provided those researchers agree not to distribute any marijuana they manufacture.” Alternatively, she says, “it could permit licensed Schedule I marijuana researchers to obtain marijuana from state-legal dispensaries.”

One way or another, it looks like the DEA is finally “moving forward” with approval of alternative marijuana suppliers. But given decades of intransigence, followed by years of foot dragging, one could be forgiven for being skeptical.

from Latest – Reason.com https://ift.tt/2xm744I
via IFTTT

Federal Judge Rules Forced Catheterization by South Dakota Police Violates Fourth Amendment

A federal judge ruled Wednesday that South Dakota law enforcement’s practice of involuntary catheterizations to obtain urine samples from suspected drug users violated the Fourth Amendment’s protections against unreasonable searches.

Chief Judge Roberto Lange of the U.S. District Court for the District of South Dakota ruled that a civil rights lawsuit by six plaintiffs who allege they were forcibly catheterized can proceed to trial on Fourth Amendment grounds. Lange found that the mere suspicion of low-level drug crimes did not appear to justify the invasive, potentially dangerous, and painful procedures.

The suit named three South Dakota cities, several police officers from those towns, and a South Dakota Highway Patrol trooper as defendants.

“Defendants’ need to obtain the plaintiffs’ urine to prove a low-level drug crime did not justify subjecting the plaintiffs to involuntary catheterization, a highly invasive—and in these cases—degrading medical procedure,” Lange wrote.

Under South Dakota law, ingesting drugs is a crime. The plaintiffs allege that they were held down and subjected to involuntary catheterization after police obtained search warrants for urine samples to detect the presence of drugs. But in the cases of two of the plaintiffs, Gena Alvarez and Aaron Peters, they were not arrested for suspected drug crimes at all.

Lange’s ruling, and the facts behind the case, are worth quoting at length:

Consider Alvarez’s case. The law enforcement need for Alvarez’s urine was not so great that it was reasonable for a male officer to hold down her bare leg, as a nurse ran a tube up her urethra and into her bladder, as Alvarez lay naked from the waist down screaming, even though she had told all present about having been sexually assaulted and was visibly distraught. Indeed, by the time of the forcible catheterization of Alvarez, law enforcement already had evidence of her driving under the influence of alcohol, so law enforcement’s purpose in her involuntary catheterization was merely to see if evidence of some other charge of ingestion—in her case of marijuana—might also be brought. There is no community interest in involuntarily catheterizing an emotionally distraught woman with a history of having been raped just to see if evidence exists to tack a drug ingestion charge onto an ironclad case of driving under the influence of alcohol. Peters’s case also illustrates the point. Peters was arrested on a bench warrant for failing to pay a court-ordered financial obligation after having been seen outside an apartment complex. The point of catheterizing Peters was to see if he could be charged with a drug-ingestion offense. A video shows Peters being catheterized with four officers holding him down and with his feet twitching as he screams in pain repeatedly.

Lange concluded that “forcing the Plaintiffs to undergo catheterization was unreasonable given the extreme intrusion on the Plaintiffs’ dignitary interests, the nature of the suspected crime, and the availability of less intrusive means to collect evidence of guilt.”

However, Lange did grant qualified immunity to the law enforcement officers named in the suit, shielding them from liability.

The lawsuit was filed by the American Civil Liberties Union of South Dakota following a 2017 investigation by the Argus Leader, which found that even children had been subject to forced catheterization—one as young as 3 years old.

The ACLU of South Dakota filed a second lawsuit on behalf of the child. It alleged that his mother was coerced by state social services officials into giving consent for her son to be catheterized to test his urine for drugs. As a result, the lawsuit claims, the boy suffered emotional trauma and developed a staph infection.

from Latest – Reason.com https://ift.tt/2yZ5Exo
via IFTTT

When the Supreme Court Upheld a Compulsory Vaccination Law

Assume that a COVID-19 vaccine is invented tomorrow and soon becomes widely available. Most Americans will undoubtedly line up eagerly for a dose, but a small number may refuse. Do state governments have the authority to compel such refusers to get vaccinated on threat of punishment?

In Jacobson v. Massachusetts (1905), the U.S. Supreme Court confronted a state law that allowed local governments to require smallpox vaccinations when the local health authorities deemed them necessary. Cambridge resident Henning Jacobson balked at his city’s vaccination requirement and was fined $5. He contested that penalty and took his case all the way up to the highest court in the land.

What was Jacobson’s legal argument? In the words of the Court, Jacobson “insists that his liberty is invaded when the State subjects him to fine or imprisonment for neglecting or refusing to submit to vaccination; that a compulsory vaccination law is unreasonable, arbitrary and oppressive, and, therefore, hostile to the inherent right of every freeman to care for his own body and health in such way as to him seems best.”

The Supreme Court rejected that argument. The 7–2 majority opinion, written by Justice John Marshall Harlan, agreed that the “power of a local community to protect itself against an epidemic threatening the safety of all might be exercised in particular circumstances and in reference to particular persons in such an arbitrary, unreasonable manner, or might go so far beyond what was reasonably required for the safety of the public, as to authorize or compel the courts to interfere for the protection of such persons.” But this case, he concluded, did not rise to that standard. The law was ruled to be a reasonable regulation.

“Whatever may be thought of the expediency of this statute, it cannot be affirmed to be, beyond question, in palpable conflict with the Constitution,” Harlan held. “Nor, in view of the methods employed to stamp out the disease of smallpox, can anyone confidently assert that the means prescribed by the State to that end has no real or substantial relation to the protection of the public health and the public safety.”

It would be one thing if Jacobson’s health or medical history put him at risk of severe injury or death from the vaccine. To force such an individual to be vaccinated “would be cruel and inhuman in the last degree,” Harlan acknowledged. But Jacobson “was himself in perfect health and a fit subject of vaccination.” The requirement was therefore constitutional as applied to him.

Justices David Brewer and Rufus Peckham dissented. They presumably believed that Jacobson’s liberty was violated by the compulsory vaccination law, but they kept their reasoning to themselves: They did not write an opinion.

Related:Police Powers During a Pandemic: Constitutional, but Not Unlimited

from Latest – Reason.com https://ift.tt/3aY21p6
via IFTTT

“I Don’t Need A Lecture”: Pelosi Praises Biden For His Response To Sexual Assault Allegations Despite Biden Not Responding

“I Don’t Need A Lecture”: Pelosi Praises Biden For His Response To Sexual Assault Allegations Despite Biden Not Responding

Authored by Jonathan Turley,

Speaker Nancy Pelosi went on CNN to praise former Vice President Joe Biden for his response to the sexual assault allegations by former Biden staffer Tara Reade.

Biden however has not personally responded to the allegations and continues to refuse to release his Senate documents being kept under key by the University of Delaware

We previously disclosed the glaring disconnect in the positions of Democrats like Pelosi in prior demands that women “must be believed” when the allegations were directed by Justice Brett Kavanaugh. 

Pelosi also supported Bill Clinton through his various allegations by multiple women ranging from sexual harassment to rape. 

Pelosi told CNN:

Well, I have great sympathy for any women who brings forth an allegation; I’m a big strong supporter of the #MeToo movement. I think it’s made a great contribution to our country and I do support Joe Biden. I’m satisfied with how he has responded, I know him, I was proud to endorse him Monday, very proud to endorse him, so I’m satisfied with that.”

Pelosi was praising Biden for his response as even liberal media outlets are running editorials  and columns calling for Biden to respond rather than continue his silence.

More importantly, Pelosi is not calling upon Biden to release his official papers and the media is not pressing her on these points.

Once again, I have always maintained that women need to be heard and taken seriously in raising these allegations.  I have also objected to those who would toss aside due process and simply accept accusations without investigation. Notably, while most are remaining silent and refusing to respond to media inquiries, some Democrats are now adopting that approach for Biden and, rather than saying that Reade must be believed, they are now saying that she must be heard. 

Biden supporter Alyssa Milano tweeted out “I hear and see you, Tara.”  She notably did not say “I believe you,” in sharp contrast with the Ford allegation. 

During the Kavanaugh hearing, some of us were slammed for not treating the Ford allegations as per se dispositive.  Now Pelosi is adopting the same position that accusers deserve to be heard and taken seriously but not categorically believed.

In the meantime, when Chris Hayes asked for a response from Biden on the sexual assault allegation, MSNBC viewers have called for him to be fired

There is nothing more jarring in echo journalism than a dissonant note, even when asking for a simple direct response from a politician accused of rape.

However, when finally confronted on the story during her weekly press conference, Pelosi snapped “I don’t need a lecture.”

“I respect your question and I don’t need a lecture or a speech,” Pelosi said.

“I have complete respect for the whole #MeToo movement… there’s also due process Joe Biden is Joe Biden… There was never any record… I am so proud, the happiest day for me this week was to support Joe Biden for president of the United States.”

Peak hypocrisy?


Tyler Durden

Thu, 04/30/2020 – 15:45

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

Federal Judge Rules Forced Catheterization by South Dakota Police Violates Fourth Amendment

A federal judge ruled Wednesday that South Dakota law enforcement’s practice of involuntary catheterizations to obtain urine samples from suspected drug users violated the Fourth Amendment’s protections against unreasonable searches.

Chief Judge Roberto Lange of the U.S. District Court for the District of South Dakota ruled that a civil rights lawsuit by six plaintiffs who allege they were forcibly catheterized can proceed to trial on Fourth Amendment grounds. Lange found that the mere suspicion of low-level drug crimes did not appear to justify the invasive, potentially dangerous, and painful procedures.

The suit named three South Dakota cities, several police officers from those towns, and a South Dakota Highway Patrol trooper as defendants.

“Defendants’ need to obtain the plaintiffs’ urine to prove a low-level drug crime did not justify subjecting the plaintiffs to involuntary catheterization, a highly invasive—and in these cases—degrading medical procedure,” Lange wrote.

Under South Dakota law, ingesting drugs is a crime. The plaintiffs allege that they were held down and subjected to involuntary catheterization after police obtained search warrants for urine samples to detect the presence of drugs. But in the cases of two of the plaintiffs, Gena Alvarez and Aaron Peters, they were not arrested for suspected drug crimes at all.

Lange’s ruling, and the facts behind the case, are worth quoting at length:

Consider Alvarez’s case. The law enforcement need for Alvarez’s urine was not so great that it was reasonable for a male officer to hold down her bare leg, as a nurse ran a tube up her urethra and into her bladder, as Alvarez lay naked from the waist down screaming, even though she had told all present about having been sexually assaulted and was visibly distraught. Indeed, by the time of the forcible catheterization of Alvarez, law enforcement already had evidence of her driving under the influence of alcohol, so law enforcement’s purpose in her involuntary catheterization was merely to see if evidence of some other charge of ingestion—in her case of marijuana—might also be brought. There is no community interest in involuntarily catheterizing an emotionally distraught woman with a history of having been raped just to see if evidence exists to tack a drug ingestion charge onto an ironclad case of driving under the influence of alcohol. Peters’s case also illustrates the point. Peters was arrested on a bench warrant for failing to pay a court-ordered financial obligation after having been seen outside an apartment complex. The point of catheterizing Peters was to see if he could be charged with a drug-ingestion offense. A video shows Peters being catheterized with four officers holding him down and with his feet twitching as he screams in pain repeatedly.

Lange concluded that “forcing the Plaintiffs to undergo catheterization was unreasonable given the extreme intrusion on the Plaintiffs’ dignitary interests, the nature of the suspected crime, and the availability of less intrusive means to collect evidence of guilt.”

However, Lange did grant qualified immunity to the law enforcement officers named in the suit, shielding them from liability.

The lawsuit was filed by the American Civil Liberties Union of South Dakota following a 2017 investigation by the Argus Leader, which found that even children had been subject to forced catheterization—one as young as 3 years old.

The ACLU of South Dakota filed a second lawsuit on behalf of the child. It alleged that his mother was coerced by state social services officials into giving consent for her son to be catheterized to test his urine for drugs. As a result, the lawsuit claims, the boy suffered emotional trauma and developed a staph infection.

from Latest – Reason.com https://ift.tt/2yZ5Exo
via IFTTT

When the Supreme Court Upheld a Compulsory Vaccination Law

Assume that a COVID-19 vaccine is invented tomorrow and soon becomes widely available. Most Americans will undoubtedly line up eagerly for a dose, but a small number may refuse. Do state governments have the authority to compel such refusers to get vaccinated on threat of punishment?

In Jacobson v. Massachusetts (1905), the U.S. Supreme Court confronted a state law that allowed local governments to require smallpox vaccinations when the local health authorities deemed them necessary. Cambridge resident Henning Jacobson balked at his city’s vaccination requirement and was fined $5. He contested that penalty and took his case all the way up to the highest court in the land.

What was Jacobson’s legal argument? In the words of the Court, Jacobson “insists that his liberty is invaded when the State subjects him to fine or imprisonment for neglecting or refusing to submit to vaccination; that a compulsory vaccination law is unreasonable, arbitrary and oppressive, and, therefore, hostile to the inherent right of every freeman to care for his own body and health in such way as to him seems best.”

The Supreme Court rejected that argument. The 7–2 majority opinion, written by Justice John Marshall Harlan, agreed that the “power of a local community to protect itself against an epidemic threatening the safety of all might be exercised in particular circumstances and in reference to particular persons in such an arbitrary, unreasonable manner, or might go so far beyond what was reasonably required for the safety of the public, as to authorize or compel the courts to interfere for the protection of such persons.” But this case, he concluded, did not rise to that standard. The law was ruled to be a reasonable regulation.

“Whatever may be thought of the expediency of this statute, it cannot be affirmed to be, beyond question, in palpable conflict with the Constitution,” Harlan held. “Nor, in view of the methods employed to stamp out the disease of smallpox, can anyone confidently assert that the means prescribed by the State to that end has no real or substantial relation to the protection of the public health and the public safety.”

It would be one thing if Jacobson’s health or medical history put him at risk of severe injury or death from the vaccine. To force such an individual to be vaccinated “would be cruel and inhuman in the last degree,” Harlan acknowledged. But Jacobson “was himself in perfect health and a fit subject of vaccination.” The requirement was therefore constitutional as applied to him.

Justices David Brewer and Rufus Peckham dissented. They presumably believed that Jacobson’s liberty was violated by the compulsory vaccination law, but they kept their reasoning to themselves: They did not write an opinion.

Related:Police Powers During a Pandemic: Constitutional, but Not Unlimited

from Latest – Reason.com https://ift.tt/3aY21p6
via IFTTT

Amazon To Use Banned Chinese Firm’s Orwellian Thermal Cameras To Scan Workers

Amazon To Use Banned Chinese Firm’s Orwellian Thermal Cameras To Scan Workers

A new Reuters investigation published Wednesday has exposed an Amazon-China bombshell, but which perhaps should come as little surprise. Chinese tech utilized in the communist state’s own deeply controversial repressive surveillance network monitoring citizens for signs of ‘dissent’ will now come to an Amazon warehouse near you:

Amazon.com Inc has bought cameras to take temperatures of workers during the coronavirus pandemic from a firm the United States blacklisted over allegations it helped China detain and monitor the Uighurs and other Muslim minorities, three people familiar with the matter told Reuters.

China’s Zhejiang Dahua Technology Co Ltd shipped 1,500 cameras to Amazon this month in a deal valued close to $10 million, one of the people said. At least 500 systems from Dahua – the blacklisted firm – are for Amazon’s use in the United States, another person said.

While a US Commerce Department’s Bureau of Industry and Security has ‘red flagged’ the procurement, it’s not ultimately considered illegal or a punishable violation of federal law, given the current blacklisting of select Chinese surveillance tech firms doesn’t stop the private sector from obtaining their products.

A Dahua thermal camera takes a man’s temperature during a demonstration, Lewis Surveillance/Handout via Reuters.

Current law only applies to federal agencies and government contracts, which it should be noted have recently been caught ‘inadvertently’ violating their own protocol in some instances. 

However, Amazon which also happens to be a major US intelligence community contractor regarding its cloud technology, hinted in a brief statement that its justification for rolling out with the controversial Chinese technology is all about ‘fighting the coronavirus pandemic’ amid a national shortage of domestic temperature monitoring devices.

Amazon said simply that it continues to “support the health and safety of our employees, who continue to provide a critical service in our communities” and that all of its procurement conforms to federal, state, and local law. But there’s an obvious Orwellian ‘creepy factor’ in terms of how Dahua’s cameras work, and the fact that Amazon has confirmed the thermal imagers will be erected at “multiple” manufacturer sites.

Reuters explains

To see if someone has a fever, Dahua’s camera compares a person’s radiation to a separate infrared calibration device. It uses face detection technology to track subjects walking by and make sure it is looking for heat in the right place.

An additional recording device keeps snapshots of faces the camera has spotted and their temperatures, according to a demonstration of the technology in San Francisco. Optional facial recognition software can fetch images of the same subject across time to determine, for instance, who a virus patient may have been near in a line for temperature checks.

Amazon denied that it will activate the facial recognition in its thermal cameras, however

Amazon said it is not using facial recognition on any of its thermal cameras. Civil liberties groups have warned the software could strip people of privacy and lead to arbitrary apprehensions if relied on by police.

“We implemented daily temperature checks in our operations locations as an additional preventative measure to support the health and safety of our employees, who continue to provide a critical service in our communities. We are now implementing the use of thermal imagers from multiple manufacturers for temperature screening to create a more streamlined experience for our employees,” the company told The Hill.

“None of this equipment has network connectivity, and no personal identifiable information will be visible, collected, or stored,” it sought to reassure.

Earlier this month Bezos paid a surprise visit to an Amazon warehouse in Dallas and received a temperature check from an employee, via Amazon News.

Though the convenient rationale at this point appears to be that manufacturers and understaffed warehouses must “preemptively prepare for their workforce coming back,” it remains the dangerous pattern is once certain cutting edge but legally and morally questionable technology gets put in place, there’s no going back.

And then there’s this ever-pressing concern, that: U.S. authorities have also worried that equipment makers like Dahua could hide a technical “back door” to Chinese government agents seeking intelligence, according to the Reuters report.


Tyler Durden

Thu, 04/30/2020 – 15:30

via ZeroHedge News https://ift.tt/3d2t83t Tyler Durden

Inflation Or Deflation? Mish Warns That Demand Collapse Trumps Supply Shocks

Inflation Or Deflation? Mish Warns That Demand Collapse Trumps Supply Shocks

Authored by Mike Shedlock via MishTalk,

The inflationists are coming out of the woodwork, but they are wrong.

Get Ready for the Return of Inflation, says Tim Congdon, in a Wall Street Journal op-ed.

The economists Milton Friedman and Anna Jacobson Schwartz demonstrated in “A Monetary History of the United States” that a collapse in the quantity of money was the main cause of the Great Depression. Hoping to avoid a repeat, the Federal Reserve in recent weeks has poured money into the economy at the fastest rate in the past 200 years. Unfortunately, this overreaction could turn out just as poorly; history suggests the U.S. will soon see an inflation boom.

Friedman and Schwartz used a broad definition of the quantity of money that included all bank deposits, and found that U.S. money stock shrank by 38% between October 1929 and April 1933. Some prominent economists—including Princeton’s Paul Krugman and Columbia’s Joseph Stiglitz—claim that money growth no longer matters much, but they’re wrong. After all, the 2007-09 recession showed that the ever-changing fortunes of the banking system have a significant effect on demand, output and employment. From 2010-18, growth rates of the quantity of money and nominal gross domestic product were virtually identical at 4% a year.

Policy makers have repeatedly called the battle against the novel coronavirus a war. As in wartime, federal expenditures are rising sharply while tax revenues are being hit by the lockdown. Both World War I and World War II—and, indeed, the Vietnam War—were followed by nasty bouts of inflation. If that happens again, policy makers today being cheered for their swift, decisive action will instead have to answer for their grave lack of foresight.

Inflation View is Wrong

The inflation view espoused above is widely held. Some even call for hyperinflation. 

However, the collapse in demand, dwarfs supply shocks and monetary printing.

The Fed Will Soon Need to Stem Deflation

Economist Tim Duy thinks along the right lines. Duy says The Fed Will Soon Need to Stem Deflation.

It was common early in the crisis to view the viral outbreak as a supply shock because, from the U.S. perspective, it appeared to be largely impacting the flow of goods from China. This original view suggested an inflationary impact from the virus.

The demand-side impact, however, now clearly dominates the economic outlook. Shutting large portions of the economy resulted in a collapse in spending and surging unemployment.  

Not only do we have a collapse in demand, but the eventual rebound in activity is likely to be anemic, too. 

The result will be a protracted, substantial output gap that will weigh not only on inflation but inflation expectations as well. That shift in expectations will weigh on demand. For instance, a student recently asked me if I thought this was a crazy time to buy a car. I said it would be better to wait a few months for prices to come down instead.

What About Wage Pressures?

Duy cited this interesting point from the recent Fed Beige Book of economic conditions. 

No District reported upward wage pressures. Most cited general wage softening and salary cuts except for high-demand sectors such as grocery stores that were awarding temporary “hardship” or “appreciation” pay increases. 

Deflation Summation

  1. Demographics

  2. No wage pressures

  3. Falling demand

  4. Anemic rebound

  5. Eurozone basket case supports the dollar

I find it amusing that people get huge inflation worries out of that mix. 

Inflation Targeting Silliness

But Duy misses the boat too on one point.

Still, watch for deflation concerns to eventually reveal themselves in increasingly strong language reinforcing the Fed’s commitment to a 2% inflation target followed by forward guidance to more strongly lock in expectations that the central bank will not reverse policy easing anytime soon. 

Duy is on the right track, but he failed to blame the Fed.

Very Deflationary Outcome Has Begun

Very Deflationary Outcome Has Begun: Blame the Fed

Economic Challenge to Keynesians

Of all the widely believed but patently false economic beliefs is the absurd notion that falling consumer prices are bad for the economy and something must be done about them.

My Challenge to Keynesians “Prove Rising Prices Provide an Overall Economic Benefit” has gone unanswered.

BIS Deflation Study

The BIS did a historical study and found routine deflation was not any problem at all.

“Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive,” stated the BIS study.

Deflationary Outcome

The existing bubbles ensure another deflationary outcome.

Deflation is not really about prices. It’s about the value of debt on the books of banks that cannot be paid back by zombie corporations and individuals.

That is what the Fed fears. It takes lower and lower yields to prevent a debt crash. But it is entirely counterproductive and it does not help the consumer, only the asset holders. Fed (global central bank) policy is to blame.

So prepare for another round of debt deflation, possibly accompanied by a lower CPI especially if one accurately includes home prices instead of rents in the CPI calculation.

For a discussion of the BIS study, please see Historical Perspective on CPI Deflations: How Damaging are They?

Inflation targeting is one of the reasons why we are in such a mess for the third time in 20 years. 

Bubbles are Inherently Deflationary

It’s asset bubble deflation that is damaging, not routine price deflation.

When asset bubbles burst, debt deflation results.

Here we go again as Hyperinflationists Come Out of the Woodwork Again.


Tyler Durden

Thu, 04/30/2020 – 15:15

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

Sen. Josh Hawley Wants a Bogus Criminal Investigation Into Amazon

Sen. Josh Hawley (R–Mo.) has made opposition to tech companies a hallmark of his tenure on Capitol Hill. Now he has sent a letter to Attorney General William Barr requesting a criminal investigation into Amazon, which the senator claimed is using “predatory and exclusionary data practices to build and maintain a monopoly.”

Hawley’s renewed ire toward Amazon stemmed from a Wall Street Journal report that the tech behemoth is using data from its third-party sellers to create private-label Amazon brands. The senator calls that proof the company has breached criminal antitrust laws.

Others call it standard operating procedure. 

“It’s an extremely common practice,” says Alec Stapp, director of technology policy at the Progressive Policy Institute. “When major retailers are developing their own brands, they use all the data available they have. That includes sales data for individual suppliers in their stores or third parties, to see what’s selling well and which features customers seem to enjoy.” 

Frequent any major department or drug store and you’ll find a slew of private-label “off-brand” products developed by the retailer and put in direct competition with the name-brand third-party seller. Trader Joe’s has “Trader Jose’s” and “Trader Giotto’s” meal options. CVS has its own hygiene products, makeup, and vitamins, among other items. Nordstrom has brands for just about everything, from shoes to handbags to accessories. The list goes on.

Amazon doesn’t use the practice particularly prolifically—certainly not when compared to other retail giants. When it comes to retail revenue generated by private labeling, Walmart clocks in at 15 percent, Macy’s at 20 percent, and U.S. grocery stores around 19 percent. For Amazon, it’s 1 percent.

So why is Hawley zeroing in on the latter? The senator has an explanation, but it’s not sufficient: “Brick-and-mortar stores collect data,” his letter acknowledges, “but online retailers like Amazon can collect so much more… They can track how long a person’s attention lingers on a product, which features attract a person’s attention, which images a person views and for how long, and what reviews a person reads.” He likens that to a physical store “attaching a camera to every customer’s forehead.”

Yet many of those same stores have lucrative online marketplaces too. Walmart, for instance, spent about $1.18 billion on information technology in 2018—far higher than actual IT companies Microsoft and Facebook. Amazon spent more, shelling out about $1.37 billion. But that difference is hardly the stuff of which monopolies are made, considering that the Amazon’s marketplace consists almost entirely of online interaction.

While Hawley’s antitrust accusations don’t hold water, Amazon isn’t necessarily guilt-free. The company’s terms of service stipulate that it doesn’t scoop information from individual sellers, instead analyzing only aggregate data. It has no legal requirement to have such a rule, but it does, and the Journal claims that the company broke that promise. If so, Amazon may have engaged in misrepresentation. Such possible breaches should be investigated—but for the relevant reasons. Allegations of criminal antitrust behavior do not meet that criteria, however, and are grounded more in partisan interests than in reality.

from Latest – Reason.com https://ift.tt/2YmNgtk
via IFTTT