My Automated, Rush Transcript of Dobbs v. Mississippi

In advance of the Court’s official transcript, you can use this automated, rush transcript. I ran the YouTube feed through Otter.ai. I can’t vouch for its accuracy. Please, if you are writing an Op-Ed or blog post about the case, quote from the transcript, and not your recollection of the transcript. Now, I will begin to write my op-ed, which will appear in Newsweek tomorrow.

(It will take some time to process, so please refresh the page if the entire transcript isn’t loaded yet).

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Only A Banking Crisis Or Higher Rates Can Stop Inflation Now: Trader

Only A Banking Crisis Or Higher Rates Can Stop Inflation Now: Trader

Submitted by QTR’s Fringe Finance

This is Part 2 of an exclusive interview with Rosemont Seneca, a U.S. based professional trader focused on event-driven and distressed situations. Rosemont spent their career on the buy-side working as a financials analyst and their investing/trading style is inspired in equal parts by Icahn and Druckenmiller.

Like me, Rosemont is not an RIA and does not hold licenses. Market commentary and opinion expressed in this interview are personal views, not investment advice or solicitation for business.

QTR’s Note: The point of this blog is to bring to the reader information and perspectives they, or the mainstream media, may not otherwise find on their own. The cool thing about FinTwit is that you get to meet people based on their ideas and investing acumen and not their identities. I have been following Rosemont on Twitter for years and love their perspective and takes on the market – their takes often stand at odds with my own and they have helped me broaden my horizon and be less bearish on markets, while still maintaining my skepticism about monetary policy. They have chosen to remain completely anonymous with me, which I respect, and I have never personally met or otherwise know anything about the identity of Rosemont. That doesn’t matter, however, because I like their ideas and their commentary. You can follow Rosemont on Twitter here.

Part 1 of this interview can be read here.

Bernard Baruch, 1919 / Photo used for @rosemontseneca’s Twitter profile

Q: What’s your take on how we’re handling Covid? You’ve mentioned what happened to our economy over the last 18 months was “economic terrorism”. Will we learn – either through people revolting or negative consequences – or will we continue down this Orwellian path?

It’s very disappointing to see how politicized the pandemic became in the United States. It obviously didn’t help that COVID struck in an Election year, but there will be plenty of blame to go around the table when a proper post-mortem analysis is conducted years from now. We hope that Bethany McLean (Enron: The Smartest Guys in the Room) will eventually write a thoroughly unbiased expose on the timeline of policy decisions in 2020. We’re of the firm belief that our Leaders in Washington D.C. did more harm than good in the early months of this pandemic.

We can safely conclude the 2020 COVID shutdowns are the direct cause for the supply chain dislocations and hyperinflation that Americans are about to suffer. The shutdowns that we witnessed in the United States were a flawed policy decision akin to willful pilot error or ‘economic terrorism;’ Federal and State Governments suffocated millions of livelihoods and permanently destroyed hundreds of thousands of perfectly viable small & medium family-owned businesses. The larger, better capitalized multinational corporations capable of accessing capital markets and Government Stimulus Programs not only survived, they eventually thrived.

What happened can only be described as a crime.

Does the Fed and the Biden administration have a handle on the inflation problem? Why or why not?

If you study the history of inflation in the U.S., whenever CPI surpasses 5.0% outside of wartime, the only thing that prevents inflation from marching higher is a banking crisis (’92, ’08) or significantly higher interest rates, which occur with a considerable lag. Capital market participants today are of the consensual view that the Fed is hamstrung from raising their Target Rate significantly higher due to Treasury’s debt service and interest burden. We don’t buy that premise; if CPI inflation trends 10% or higher they will have to act with Volckerian resolution.

Our supply chains have been diligently outsourced overseas during the last three decades. The physical goods we import ($3.0 trillion/year) and consume will probably continue to see tremendous inflation in 2022-2023, the worst since the Carter years. There is absolutely nothing Biden can do (not even SPR releases) to change this paradigm as tremendous damage was done in 2020; a patient who suffers a debilitating stroke may take many months or years to learn to walk again. The same goes for our global economy. In the meantime, inflation will gallop away.

When China exits the crypto market, could it be because they are worried about a crash – or do you think it’s just so it doesn’t compete with the digital yuan?

We’ve been in regular touch with China-based crypto traders in Shenzhen and Hong Kong since 2015. What we gather (and this was widely commented) is the CCP didn’t want energy resources and coal being wasted on crypto mining during a time of energy supply shortages post-COVID.

North Korea, Iran and Venezuela proactively hack and mine crypto currencies today. The cynical conclusion is that China wanted to save this nefarious business for the State. The CCP is already in the business of industrial espionage and stealing U.S. intellectual property; operating within a $2.5 trillion crypto market with a large addressable market with far fewer diplomatic consequences seems like a better business.

What stocks/sectors would you avoid at all costs right now?

There are many sectors that are in a clear and present mania:

–       Most electric vehicle companies (Tesla included)

–       crypto currency and NFT-related equities

–       majority of Meme Stocks    

–       90% of SPAC-linked structures   

–       Emerging Market equities (why send precious U.S. Dollars to die abroad?)

–       80% of stocks in the ARKK fund (ARK Invest analysts are glorified journalists)

Is it “different” this time? Will we normalize at these PE ratios and this balance of growth vs. value? Or will PEs eventually crash back under 10 and will value be a virtue again?

It’s never different this time.

Cycles get longer or shorter, the catalysts change, but the progression of boom-bust cycles never changes. Warren Buffett likes to gauge total U.S. market capitalization / GDP levels, Pierre Lassonde tracks the Dow / Gold ratio. At extremes these metrics provide interesting signals to be cautious or greedy. By those measures the U.S. equity market seems extremely overstretched at present.

The Shiller PE Ratio (38x) is also back at 1999-2000 levels.

We would probably need a very acute banking crisis similar to 2008 or a Fed Fund Target Rate in the 8-10% range for the market multiple to de-rate down to 10x. Given the schizophrenic high-frequency nature of our equity market, it’s very hard to predict growth/value factor rotations, timing and duration.

We’ll defer to competent equity market Strategists like Mike Wilson or Tom Lee to go in-depth with you on this question.

You can read Part 1 of this interview hereZerohedge readers always get 10% off a subscription to my blog for life by using this link.

DISCLAIMER: 

It should be assumed I or Rosemont Seneca has positions in any security or commodity mentioned in this article. None of this is a solicitation to buy or sell securities. Neiher I nor RS hold licenses or are investing professional. None of this is financial advice. Positions can always change immediately as soon as I publish this, with or without notice. You are on your own. Do not make decisions based on my blog. I exist on the fringe. The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I get shit wrong a lot. 

Tyler Durden
Wed, 12/01/2021 – 12:37

via ZeroHedge News https://ift.tt/3lqCvR4 Tyler Durden

Country Braces For Historic SCOTUS Decision That Could Uproot Roe V Wade

Country Braces For Historic SCOTUS Decision That Could Uproot Roe V Wade

Most of the justices on the Supreme Court have indicated they are open to setting new limits on the right to abortion.

During Wednesday oral arguments over a Mississippi law which bans virtually all abortions after 15 weeks of pregnancy, conflicting with the 1973 landmark Roe v. Wade decision which prohibits states from outlawing abortions prior to when a fetus is viable outside the womb, or around 24 weeks.

On Wednesday, the court’s conservatives led by Chief Justice John Roberts – a six-member majority, questioned how firmly rooted Roe’s viability standard is, according to The Hill.

“If you think that the issue is one of choice, that women should have the choice to terminate their pregnancy, that supposes that there is a point at which they’ve had the fair choice, the opportunity to choice. And why would 15 weeks be an inappropriate line? Viability, it seems to me, doesn’t have anything to do with choice. But if it really is an issue about choice, why is 15 weeks not enough time?” said Roberts.

Developing…

Tyler Durden
Wed, 12/01/2021 – 12:16

via ZeroHedge News https://ift.tt/3I8kr8d Tyler Durden

After Rebounding Sharply From Tuesday’s Rout, Stocks Face A Big Gamma Test

After Rebounding Sharply From Tuesday’s Rout, Stocks Face A Big Gamma Test

As expected, yesterday’s bearish month-end rebalancing which saw over $8 billion in MOC for sale orders has given way to the traditional strong December equity inflows, sending futures sharply higher.

So now that reflexive fund flows have reversed and the narrative is quickly changing to one where both the bearish Omicron and Powell developments have been mitigated, at least according to today’s price action, the question is what comes next.

One answer comes from our friends at SpotGamma who look at the latest option exposure and continue to see major support down near 4550 noting that one of their largest combo strikes filled in at 4565 overnight. “This implies the “base” in options positions is building” and should the market revisit that area “price action would stall – and that would lead to a drop in implied volatility. In turn this incentives traders to close put options, which leads to dealers buying back futures.

More importantly, and in keeping with what we said last week (“Is This A Real Crash? Keep An Eye On The VIX For The Answer“), SG points out that “implied volatility is down sharply this morning (black line today, blue y’day), as indicated in the graph below.” This shows that the VIX complex (aka implied volatility) is decompressing, which is a tailwind for equities.

So looking forward, the first hurdle for the S&P to clear is that of the Volatility Trigger/gamma flip line of 4640 – which is where futures are trading right now – and which markets could gain a bit of positive gamma support according to SpotGamma.

Alternatively, if we dip back below that line elevated market volatility is likely to remain.

But more critically for bulls is for the market to enter the “orbit” of the large 4700 gamma strike, which would initiate more positive gamma pull. That said, it will likely take some type of macro catalyst such as a reduction in fear around Covid, clarity on policy from Powell or a clear resolution on the debt ceiling that leads to a real release in this elevated implied volatility. Naturally, any continued drop in implied volatility should be seen as fuel for higher prices – this, as SG reminds us, is the vanna component that is critical to rallies.

Finally, the most efficient way to view the composite picture is through the gamma profile below. Here SpotGamma notes that one can see the positive strike distribution that starts at ~4670 and builds up into 4717. From 4650 below there gamma remains quite neutral which is why markets are “fluid” – read volatile – in that price area.

 

Tyler Durden
Wed, 12/01/2021 – 12:08

via ZeroHedge News https://ift.tt/3Edwyi7 Tyler Durden

Brickbats: Soviet Edition


bb2

Soviet culture officials in the late 1940s attempted to downplay the accomplishments of Europe and America by renaming imported foods to make them seem Russian and by claiming credit for various innovations. Camembert was renamed zakusochnyi (“snack cheese”) to disguise its French origins. A newspaper declared that the Palace of Versailles was a knockoff of palaces built by Peter the Great. Soviet encyclopedias incorrectly attributed the first successful airplane flight not to the Wright brothers but to Russian inventor Alexander Mozhaysky.

Following World War II, Josef Stalin approved the expansion of car production for individual purchase. But with only 6,000 produced in 1946 and 10,000 produced in 1947, there weren’t enough to go around. Trade unions organized waiting lists that stretched as long as 6 years.

In 1970, a Soviet criminologist determined that—due to widespread scarcity of housing, consumer goods, and materials needed for manufacturing—corrupt economic practices like bribery and embezzlement accounted for one-quarter of all crimes in the Soviet Union.

To deal with agricultural shortcomings, Soviet leader Nikita Khrushchev promoted the expansion of corn as a crop well-suited to feeding both people and livestock. From 1954 to 1955, the amount of corn the country grew boomed from 4.3 million to 18 million hectares. It reached 37 million hectares by 1962. But while the country focused on increasing the amount of corn it grew, it did not emphasize efficient or sustainable farming or give much consideration to appropriate growing conditions. In 1962, a cool, rainy spring and summer killed off 70–80 percent of the plantings.

In 1966, the Soviet Union mandated that all companies begin spending 1 percent of their revenue on advertising, despite the absence of market competition or even goods to promote.  From 1967 to 1991, the country’s only advertising agency produced ads for minced chicken, hot air showers, cars, and more than 6,000 other products, many of which did not actually exist, would never be produced, and Russian citizens could not buy.

Humorous game show KVN, which featured teams of competing college students, launched on Soviet television in 1961. Part quiz show, part improvisational comedy, it quickly became a national craze. But as the Soviet political climate grew more repressive in the late 1960s and early 1970s, censors grew hostile to the show’s humor. It was canceled in 1972 despite its popularity. It returned to the airwaves in 1986 and is still on today.

Under Khrushchev, a “thaw” allowed state-funded Soviet artists to experiment in styles other than the utopian propaganda of Socialist Realism. But at an art exhibition in Moscow in 1962, Khrushchev condemned and insulted the experimental and abstract artwork that his policies had led to. He suggested that several of the artists were “pederasts” and “parasites” and threatened them with imprisonment. Though he didn’t follow through on his threats, the thaw faded and adherence to Socialist Realism was once again enforced.

In 1985, not long after taking charge of the Soviet Union, Mikhail Gorbachev began a campaign to try to reduce alcoholism. He prohibited alcohol sales before 2 p.m. and shut down distilleries and vineyards in republics such as Moldavia (now Moldova) and Georgia. Like America’s attempts at prohibition, the efforts resulted in spikes in organized crime and black markets. The state also lost revenue, enough to cause budget deficits, and Gorbachev abandoned the campaign in 1987.

Sources: “Seventeen Moments in Soviet History” archive, Michigan State University; “Soviet Spiel: Why the U.S.S.R. Produced Ads for Non-existing Products,” Rakesh Krishnan Simha, Russia Beyond; “Political Corruption in the U.S.S.R,” J.M. Cramer, Western Political Quarterly, Volume 30, Issue 2

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Facebook Fact-Checkers Are Stifling Open Debate


Screen Shot 2021-12-01 at 10.57.49 AM

I’ve reported how Facebook censors me.

Now I’ve learned that they also censor environmentalist Michael Shellenberger, statistician Bjorn Lomborg, and former New York Times columnist John Tierney.

Facebook’s “fact-checkers” claim we spread “misinformation.”

In my new video, Tierney argues that the “people guilty of spreading misinformation are Facebook and its fact-checkers.”

He’s right.

Facebook doesn’t do its censoring alone. It partners with groups approved by something called the Poynter Institute, a group that claims “a commitment to nonpartisanship.”

But Poynter isn’t nonpartisan. It promotes progressive jargon like “decolonize the media,” and it praises left-leaning journalists. Once they even proposed blacklisting conservative news sites.

One “fact-checker” Poynter approved is a Paris-based group calling itself “Science Feedback.”

Science Feedback objected to an article Tierney wrote that says forcing children to wear masks can be harmful. He cited a study, which later passed peer review, in which parents complained about masks “giving their children headaches and making it difficult for them to concentrate.” Facebook calls Tierney’s article “partly false.”

That “partly false” label is nasty because it leads Facebook to stop showing Tierney’s work to many people.

But his article was accurate. Science Feedback censored it because parents’ comments are not a random sample. But it’s obvious that such comments are not random. Tierney acknowledges that in his article.

What should be labeled “false” is Science Feedback’s sloppy fact-check. It includes a “key takeaway” that says that masks are fine for children over 2. But “that’s not something that most scientists believe,” says Tierney. “Not what the World Health Organization believes.”

Again, he’s right. The World Health Organization says kids under 5 should generally not be required to wear masks.

“There are all kinds of well-documented effects of wearing a mask,” adds Tierney. “Workers who wear masks for a couple hours in Germany have to stop and take a half-hour break. This shouldn’t be a controversial thing to say.”

No, it shouldn’t.

Facebook often censors things that should be talked about. They banned discussion of the idea of that COVID-19 escaped from a lab, only reversing course when the Biden administration did.

Science Feedback also doesn’t like articles questioning the “climate crisis.” That’s what got Shellenberger punished.

“They censored me for saying we’re not in a sixth mass extinction,” Shellenberger complains. “We’re not!”

Lomborg was censored for pointing out “rising temperatures have actually saved lives.” That’s because cold weather kills more people than warm weather.

No scientific study has yet proven that a recent drop in deaths was caused by the temperature rise. But so what? His main point—temperature-related deaths fell while the planet warmed—is true.

Yet Science Feedback works with Facebook to keep that out of your Facebook feed.

Lomborg says the “fact-checkers” want people alarmed by climate change. “It makes it a lot easier to get people to donate money.”

Science Feedback’s leader now plans to expand his censorship powers—so he can censor not only Facebook, but other social media.

That’s frightening.

I sympathize with Facebook. Some users spread lies. Politicians blame Facebook and demand the company “do something.”

But there’s no way Facebook can police all the posts, so it does destructive things like partnering with Poynter Institute “fact-checkers.”

The fact-checkers “have a mission outside just facts,” says Lomborg. “They also want you to not know stuff. That’s not fact check. That’s simply saying, ‘We don’t want to hear this opinion in the public space.’ Frankly, that’s terrifying….The goal is nice…less misinformation on the internet. But you could very well end up in a place where we only have approved facts that fit the current narrative. That would be a terrible outcome.”

But that’s the outcome we’ve got.

Facebook and its censors are now the enemy of open debate.

“They’re trying to suppress people whose opinions and whose evidence they don’t like,” concludes Tierney. “They’re not fact-checkers, they’re fact-blockers.”

The world doesn’t need fact-blockers.

We need more freedom to speak, not less.

COPYRIGHT 2021 BY JFS PRODUCTIONS INC.

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Brickbats: Soviet Edition


bb2

Soviet culture officials in the late 1940s attempted to downplay the accomplishments of Europe and America by renaming imported foods to make them seem Russian and by claiming credit for various innovations. Camembert was renamed zakusochnyi (“snack cheese”) to disguise its French origins. A newspaper declared that the Palace of Versailles was a knockoff of palaces built by Peter the Great. Soviet encyclopedias incorrectly attributed the first successful airplane flight not to the Wright brothers but to Russian inventor Alexander Mozhaysky.

Following World War II, Josef Stalin approved the expansion of car production for individual purchase. But with only 6,000 produced in 1946 and 10,000 produced in 1947, there weren’t enough to go around. Trade unions organized waiting lists that stretched as long as 6 years.

In 1970, a Soviet criminologist determined that—due to widespread scarcity of housing, consumer goods, and materials needed for manufacturing—corrupt economic practices like bribery and embezzlement accounted for one-quarter of all crimes in the Soviet Union.

To deal with agricultural shortcomings, Soviet leader Nikita Khrushchev promoted the expansion of corn as a crop well-suited to feeding both people and livestock. From 1954 to 1955, the amount of corn the country grew boomed from 4.3 million to 18 million hectares. It reached 37 million hectares by 1962. But while the country focused on increasing the amount of corn it grew, it did not emphasize efficient or sustainable farming or give much consideration to appropriate growing conditions. In 1962, a cool, rainy spring and summer killed off 70–80 percent of the plantings.

In 1966, the Soviet Union mandated that all companies begin spending 1 percent of their revenue on advertising, despite the absence of market competition or even goods to promote.  From 1967 to 1991, the country’s only advertising agency produced ads for minced chicken, hot air showers, cars, and more than 6,000 other products, many of which did not actually exist, would never be produced, and Russian citizens could not buy.

Humorous game show KVN, which featured teams of competing college students, launched on Soviet television in 1961. Part quiz show, part improvisational comedy, it quickly became a national craze. But as the Soviet political climate grew more repressive in the late 1960s and early 1970s, censors grew hostile to the show’s humor. It was canceled in 1972 despite its popularity. It returned to the airwaves in 1986 and is still on today.

Under Khrushchev, a “thaw” allowed state-funded Soviet artists to experiment in styles other than the utopian propaganda of Socialist Realism. But at an art exhibition in Moscow in 1962, Khrushchev condemned and insulted the experimental and abstract artwork that his policies had led to. He suggested that several of the artists were “pederasts” and “parasites” and threatened them with imprisonment. Though he didn’t follow through on his threats, the thaw faded and adherence to Socialist Realism was once again enforced.

In 1985, not long after taking charge of the Soviet Union, Mikhail Gorbachev began a campaign to try to reduce alcoholism. He prohibited alcohol sales before 2 p.m. and shut down distilleries and vineyards in republics such as Moldavia (now Moldova) and Georgia. Like America’s attempts at prohibition, the efforts resulted in spikes in organized crime and black markets. The state also lost revenue, enough to cause budget deficits, and Gorbachev abandoned the campaign in 1987.

Sources: “Seventeen Moments in Soviet History” archive, Michigan State University; “Soviet Spiel: Why the U.S.S.R. Produced Ads for Non-existing Products,” Rakesh Krishnan Simha, Russia Beyond; “Political Corruption in the U.S.S.R,” J.M. Cramer, Western Political Quarterly, Volume 30, Issue 2

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Russia Orders More US Diplomats To Leave In Retaliatory Measure

Russia Orders More US Diplomats To Leave In Retaliatory Measure

Russia has booted more US diplomats from the country, days after the foreign ministry confirmed the United States had ordered an additional 27 Russian diplomats to leave by end of January (which would bring the recent total expelled to 50). Russian Foreign Ministry Spokeswoman Maria Zakharova made the announcement Wednesday, awkwardly coming a day before US Secretary of State Antony Blinken is expected to meet with his Russian counterpart Sergey Lavrov on the sidelines of the Organization for Security and Cooperation on Europe (OSCE) summit in Stockholm.

“We view the US demand as an act of expulsion and intend to resort to retaliatory measures,” she vowed. “Members of the US Embassy in Russia, who have been on their mission here for more than three years, must leave Russia before January 31, 2022.”

US embassy in Moscow, via Reuters

Calling it an affront on “diplomatic norms” Zakharova said of the 27 diplomats expelled from the US: “Russia sent them there on their mission based on the staff policy of our ministry and the diplomatic service,” according to TASS. “[Our] American partners devised for us how Russian diplomats should leave the United States by terminating their duties.”

“I would like to emphasize that the choice is not ours,” she explained in Wednesday’s briefing. “Our American partners have forced us to play that way. We have long and persistently tried to reason with them and still direct them to some kind of constructive solution to the issue, but they made their choice.” However, Russia has held out that if Washington reverses its own latest decisions, Moscow too would not carry out the expulsion order. 

This comes after several similar tit-for-tat moves which has left both sides complaining about severe staff shortages inside their embassies, also as Russia struggles to maintain its consulates outside of D.C. as well. As Al Jazeera reviews:

The US embassy in Moscow is the last operational US mission in the country, which has shrunk to 120 staff from about 1,200 in early 2017, Washington says.

Further reductions in US embassy staff would put pressure on an operation that Washington has previously described as being close to a “caretaker presence”.

This past summer the Russian government in a devastating blow for US Embassy-Moscow staffing imposed a ban on local Russian citizens being hired for staffing positions at the embassy.

Some Congressional leaders have argued for more. In October Congressional hawks actually proposed an even bigger wave of expulsions, which would damage relations to the point of potentially breaking US-Russia communications altogether.

Citing the refusal of Moscow to in a timely manner issue more visas for American employees of the Moscow embassy, leading Senators had called for the US banning as many as 300 Russian diplomatic staff from the US. Given what’s looking to be multiple waves of expulsions, it’s possible that high number could eventually be reached at this rate.

Tyler Durden
Wed, 12/01/2021 – 11:45

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

Facebook Fact-Checkers Are Stifling Open Debate


Screen Shot 2021-12-01 at 10.57.49 AM

I’ve reported how Facebook censors me.

Now I’ve learned that they also censor environmentalist Michael Shellenberger, statistician Bjorn Lomborg, and former New York Times columnist John Tierney.

Facebook’s “fact-checkers” claim we spread “misinformation.”

In my new video, Tierney argues that the “people guilty of spreading misinformation are Facebook and its fact-checkers.”

He’s right.

Facebook doesn’t do its censoring alone. It partners with groups approved by something called the Poynter Institute, a group that claims “a commitment to nonpartisanship.”

But Poynter isn’t nonpartisan. It promotes progressive jargon like “decolonize the media,” and it praises left-leaning journalists. Once they even proposed blacklisting conservative news sites.

One “fact-checker” Poynter approved is a Paris-based group calling itself “Science Feedback.”

Science Feedback objected to an article Tierney wrote that says forcing children to wear masks can be harmful. He cited a study, which later passed peer review, in which parents complained about masks “giving their children headaches and making it difficult for them to concentrate.” Facebook calls Tierney’s article “partly false.”

That “partly false” label is nasty because it leads Facebook to stop showing Tierney’s work to many people.

But his article was accurate. Science Feedback censored it because parents’ comments are not a random sample. But it’s obvious that such comments are not random. Tierney acknowledges that in his article.

What should be labeled “false” is Science Feedback’s sloppy fact-check. It includes a “key takeaway” that says that masks are fine for children over 2. But “that’s not something that most scientists believe,” says Tierney. “Not what the World Health Organization believes.”

Again, he’s right. The World Health Organization says kids under 5 should generally not be required to wear masks.

“There are all kinds of well-documented effects of wearing a mask,” adds Tierney. “Workers who wear masks for a couple hours in Germany have to stop and take a half-hour break. This shouldn’t be a controversial thing to say.”

No, it shouldn’t.

Facebook often censors things that should be talked about. They banned discussion of the idea of that COVID-19 escaped from a lab, only reversing course when the Biden administration did.

Science Feedback also doesn’t like articles questioning the “climate crisis.” That’s what got Shellenberger punished.

“They censored me for saying we’re not in a sixth mass extinction,” Shellenberger complains. “We’re not!”

Lomborg was censored for pointing out “rising temperatures have actually saved lives.” That’s because cold weather kills more people than warm weather.

No scientific study has yet proven that a recent drop in deaths was caused by the temperature rise. But so what? His main point—temperature-related deaths fell while the planet warmed—is true.

Yet Science Feedback works with Facebook to keep that out of your Facebook feed.

Lomborg says the “fact-checkers” want people alarmed by climate change. “It makes it a lot easier to get people to donate money.”

Science Feedback’s leader now plans to expand his censorship powers—so he can censor not only Facebook, but other social media.

That’s frightening.

I sympathize with Facebook. Some users spread lies. Politicians blame Facebook and demand the company “do something.”

But there’s no way Facebook can police all the posts, so it does destructive things like partnering with Poynter Institute “fact-checkers.”

The fact-checkers “have a mission outside just facts,” says Lomborg. “They also want you to not know stuff. That’s not fact check. That’s simply saying, ‘We don’t want to hear this opinion in the public space.’ Frankly, that’s terrifying….The goal is nice…less misinformation on the internet. But you could very well end up in a place where we only have approved facts that fit the current narrative. That would be a terrible outcome.”

But that’s the outcome we’ve got.

Facebook and its censors are now the enemy of open debate.

“They’re trying to suppress people whose opinions and whose evidence they don’t like,” concludes Tierney. “They’re not fact-checkers, they’re fact-blockers.”

The world doesn’t need fact-blockers.

We need more freedom to speak, not less.

COPYRIGHT 2021 BY JFS PRODUCTIONS INC.

The post Facebook Fact-Checkers Are Stifling Open Debate appeared first on Reason.com.

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More Police Officers Associated with More Black Homicides Prevented

An interesting article cowritten by a UCLA Public Policy school colleague of mine, Police Force Size and Civilian Race, forthcoming from Aaron Chalfin, Benjamin Hansen, Emily K. Weisburst and Morgan C. Williams, Jr. (I quote below from the May 4, 2021 draft). I’m not an expert on this subject, but I thought it worth passing along; I’d be glad, of course, to also excerpt and link to any articles that point out flaws in this one.

The background:

While there is now a strong consensus in the academic literature that the number of police officers (McCrary, 2002; Evans and Owens, 2007; Chalfin and McCrary, 2018; Mello, 2019; Weisburst, 2019b) combined with their presence and visibility (Sherman and Weisburd, 1995; Di Tella and Schargrodsky, 2004; Klick and Tabarrok, 2005; Braga et al., 2014; MacDonald et al., 2016; Weisburd, 2016) reduces crime, whether the effect of additional law enforcement is heterogeneous across Black and white Americans remains a surprisingly open question…. Using national data on police employment for a sample of 242 large U.S. cities over a 38-year period, this research provides novel evidence on the racial differences in public safety returns to law enforcement expansion in the United States….

The homicide findings:

We find that each additional police officer hired abates between 0.06 and 0.1 homicides [per year] …. The estimates suggest that investments in police manpower can save a life at a cost of between $1.6 and $2.7 million, far lower than common for accepted estimates of the value of a statistical life which typically exceed $7 million.

Although the total reduction in homicide is roughly equal across Black and white victims, the decline in homicide is twice as large for Black victims in per capita terms. {On a per capita basis, police force expansion has a larger effect on homicide victimization for Black civilians (0.006 0.012 homicides per 100,000 population [for each officer per year]) than for white civilians (0.002 0.008 homicides per 100,000 population). The per capita racial disparity in the effect of police force size on homicide victimization is significant … (p < 0.001).}

{On average, individuals living in the cities in our sample are 24% non-Hispanic Black, 19% Hispanic, and 49% non-Hispanic white…. In an average city-year in our data, there are 244 homicide victims, of which 138 (57%) are non- Hispanic Black and 64 (26%) are non-Hispanic white. Nationally, approximately half of homicide victims are Black—the proportion in our sample is slightly higher as we focus on large cities. In per capita terms, Black residents are approximately 4 times as likely to be the victim of a homicide compared to white residents….}

The quality of life arrest findings:

Next, we consider the extent to which investments in police manpower expand civilian interactions with the criminal justice system, or create “net widening” effects, focusing on differences by race in police enforcement activity. Here, we find that investments in police manpower lead to larger total numbers of low-level “quality of life” arrests, with each additional officer making 7-22 new arrests. These increases are driven by an increase in arrests for liquor violation and drug possession, with effects that imply that increases in these types of arrests are 2.5-3 times larger for Black civilians.

{[W]hile the racial disparity that we estimate is not significant at conventional levels, this test is likely conservative since, due to arrest data limitations, Hispanic arrestees are overwhelmingly classified as white for this outcome. As research indicates important Hispanic-white disparities with respect to policing outcomes (Sanga, 2009), the white estimate which includes Hispanic arrestees estimate is likely to be larger than the non-Hispanic white estimate.}

{To the extent that policymakers conclude that the costs of making large numbers of arrests for “quality of life” offenses outweigh the potential public safety benefits, we note that a number of different avenues for reform could address racial disparities in the burdens of police enforcement. Consistent with our finding that the racially disparate effects of investments in police manpower are particularly large for drug possession arrests, the decriminalization of the possession of small amounts of drugs may be a particularly promising avenue for reducing racial disparities.}

And the findings on serious “index crimes” (“murder, rape, robbery, aggravated assault, burglary, grand larceny and motor vehicle theft”):

At the same time, we find that arrests for the most serious offenses (so-called “index crimes”) fall with investments police manpower. {Consistent with the prior literature (Evans and Owens, 2007; Kaplan and Chalfin, 2019; Weisburst, 2019b), we find that each police officer abates approximately 18-24 index crimes, an estimate which implies an elasticity of index crimes with respect to police is approximately -1.1. Since larger police forces lead to reductions in index crimes, the decline in index crime arrests that we observe suggests that larger police forces reduce serious crime primarily through deterrence rather than by arresting and incapacitating additional offenders (Nagin, 2013; Chalfin and McCrary, 2017; Kaplan and Chalfin, 2019).}

On a per capita basis, the decline in index crime arrests that we observe is between 4-6 times greater for arrests involving Black suspects. This finding is consistent with the idea that police hiring has the potential to create a “double dividend” (Bratton, 2011; Cook and Ludwig, 2011; Durlauf and Nagin, 2011) for both Black and white Americans by generating reductions in both crime and arrests for serious offenses.

The authors’ remarks on the broader policy implications:

Our estimates capture the historical opportunity cost of policing, by including controls that hold municipal spending fixed. In this vein, our results suggest that “de-funding” the police could result in more homicides, especially among Black victims.

Of course, reducing funding for police could allow increased funding for other alternatives. An array of high-quality research suggests that crime can, in certain contexts, be reduced through methods other than policing or its by-product, incarceration. Among the many alternatives to police for which there is promising evidence are place-based crime control strategies such as increasing the availability of trees and green space (Branas et al., 2011), restoring vacant lots (Branas et al., 2016, 2018; Moyer et al., 2019), public-private partnerships (Cook and MacDonald, 2011), street lighting (Doleac and Sanders, 2015; Chalfin et al., 2019), and reducing physical disorder (Sampson and Raudenbush, 2001; Keizer et al., 2008). There is also evidence that social service-based strategies such as summer jobs for disadvantaged youth (Heller, 2014; Gelber et al., 2016; Davis and Heller, 2017), cognitive behavioral therapy (Blattman et al., 2017; Heller et al., 2017), mental health treatment (Deza et al., 2020; Jácome, 2020) and local non- profits more generally (Sharkey et al., 2017) can have important crime-reducing effects. While social service interventions are often difficult to scale (Mofiitt, 2006; Ludwig et al., 2011), the increasing number of studies which show that there are ways to reduce crime outside the deterrence channels of the traditional model of Becker (1968) is encouraging.

Whether communities should invest less in law enforcement and more in alternative strategies remains an open question, as such a material change in our society’s approach to public safety has yet to be implemented at scale. Our research focuses on one crucial aspect of this policy debate—the effect of reducing police employment—an outcome which would likely result if proposals to reduce funding for municipal police departments are adopted in the future. This study provides an estimate of the historical trade-offs of investments in law enforcement and, critically, the resulting implications for communities of color.

To be sure, hiring police officers might also increase the number of blacks killed by police officers; the study notes that it “exclude[s] homicides committed in prisons or jails as well as felons killed in the commission of a crime as these are likely to fall under the legal definition of justifiable homicide” (and of course it’s possible that some of the “felons killed in the commission of a crime” were actually innocent, or at least innocent of any serious crime). It’s also possible that it might decrease that number, for instance by reducing the number of arrests for the serious index offenses, which may be especially likely to lead to police shootings.

But in any event, this feature is unlikely to affect the overall results of this study: The total number of blacks killed by police officers in 2020 was 241 (as compared to 457 whites), for a national average of about 0.5 per 100,000 population. Even if such shootings were positively correlated with additional police officers, that correlation is likely to be swamped by the 0.006-0.012 per 100,000 per police officer decline in homicides that the study observes. (Note that the total number of black murder victims in the U.S. was 9,913, as compared to 7,029 whites.)

 

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