Under COVID Lockdown, Shanghai’s People Are Running Out of Food and Meds While Pets Get Killed in the Streets


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In Shanghai, which is three times the size of New York City, residents have been under strict pandemic lockdown since March 27 in some parts, and since March 31 in others, with no end in sight.

Having detected a huge surge in cases, with more than 20,000 new cases being found daily, Chinese authorities locked the city of 25 million down, forcing residents into situations of extraordinary deprivation and subjecting them to brutal containment and control measures. With residents unable to leave their houses, food supplies are dwindling, and government workers attempting to deliver supplies to homes and apartments, frequently failing to do so in a timely or consistent manner. People are running out of the medicines they need to stay healthy or alive. Some people experiencing medical emergencies, CNN reports, have died after being turned away; they were unable to access care without negative COVID tests. “We are not killed by Covid, but by the Covid control measures,” read a viral post on social media site Weibo.

Due to strict containment and isolation measures in place for COVID-positive people, some mothers report being forcibly separated from their COVID-infected children by authorities. Health authorities allege parents will be able to appeal this and seek permission (!) to accompany their COVID-positive children to hospitals and isolation wards. It is unclear how this will actually apply in practice and whether this will end the brutal measure of separating parents from their young, sick children.

“In this country it’s not the virus that scares us, but the chaotic anti-Covid measures that have caused risks to the well-being of the elderly, the children and companion animals,” Shanghai resident Lily Chen told Bloomberg. “I now realize we can only rely on ourselves—not the government—to protect our own families.”

A video that has gone viral in China shows one family in Shanghai being taken off to COVID quarantine as their pet corgi chased the van in pursuit of its people. They had ostensibly released the dog into the city, assuming possible survival, instead of letting it stay in the family home during the quarantine period (where it would die without care). The dog was promptly killed by a COVID prevention worker wielding a spade. (This is not the first time Chinese authorities have come under fire for brutal treatment of pets in pursuit of COVID containment.)

Those who do violate or attempt to violate state-mandated quarantine or lockdown are subjected to punishment, though it is difficult to know the full extent due to the Chinese Communist Party’s (CCP) aggressive censorship. In other cities like Shandong, which was also recently forced under lockdown, videos of harsh punishments have circulated:

(Some on social media site Weibo suggest that the above could be a parody, while others elsewhere note that “forcibly shaving only the left side” is a callback to “an insulting practice widely used during the Cultural Revolution.”)

All such measures are part of the CCP’s “COVID Zero” strategy, which aims to entirely eliminate COVID spread within China’s borders, often through imposition of aggressive regional lockdowns like the one seen in Shanghai, as well as strict border control and frequent testing. Only about half of China’s above-80 population is fully vaccinated, with Chinese vaccines proving less effective than their Western counterparts. It’s unclear what the death toll looks like as this COVID outbreak takes it course, and CCP-sourced numbers are notoriously unreliable.

What is clear is the degree to which residents of Shanghai are disturbed by the state of deprivation they’ve been forced to endure; an unusually high amount of government criticism has emanated from Weibo and other platforms, which are typically heavily censored. “We don’t want to starve to death,” chanted residents of one suburb.

“Control your soul’s desire for freedom,” one drone told them as it aerially broadcasted COVID control policies throughout the city, emblematic of how seriously CCP authorities take citizens’ concerns.

The post Under COVID Lockdown, Shanghai's People Are Running Out of Food and Meds While Pets Get Killed in the Streets appeared first on Reason.com.

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Short Circuit: A Roundup of Recent Federal Court Decisions

Please enjoy the latest edition of Short Circuit, a weekly feature from the Institute for Justice.

New on the Short Circuit podcast: A special live edition on the D.C. Circuit with former D.C. Circuit clerks (as well as frequent Supreme Court arguers) Lisa Blatt, Kelsi Brown Corkran and Paul Clement.

  • Cemetery company buys 180-acre property in Readington Twp., N.J. (that is zoned for cemetery use) and makes significant concessions to township officials: 73 acres to be available for public use, no herbicides or pesticides, preexisting buildings to be renovated, no headstones visible to passersby, and more. Officials: Yeah, but still. No permit for you. District court: A state law that says localities must consent to new cemeteries is unconstitutional because it gives officials “unfettered discretion” to reject applicants for any reason, including “cronyism, economic protectionism, ethnic or racial bias, or a preference for a particular religion.” Third Circuit (nonprecedentially): Reversed. The law gives discretion to local legislators—not police, judges, or juries—so it’s fine.
  • After a trip to the Supreme Court, the question of whether Baltimore officials’ suit against 26 multinational fossil fuel companies over climate change (and attendant floods, heat waves, auto accidents, and power outages within city limits) will proceed in state or federal court returns to the Fourth Circuit. Which, over the course of 93 pages, reviews the defendants’ eight distinct arguments for federal jurisdiction and rejects all of them. To Baltimore City Circuit Court!
  • After the Fairfax County School Board in Virginia eliminated standardized tests from the admissions criteria for the prestigious Thomas Jefferson High School for Science & Technology, Asian-American enrollment dropped from an average of 71% to 54% for the class of 2025. District Court: Which violates equal protection. Fourth Circuit (with concurrence and dissent): The ruling is stayed pending appeal.
  • Attorney Steven Biss is most widely known for filing frivolous lawsuits on behalf of former congressman Devin Nunes against, among others, The Washington Post, Esquire, CNN, and a Twitter cow. As a result, like the boy who cried wolf, judges tend not to give him the benefit of the doubt. But at least in this Fourth Circuit case, the trial court was wrong to impose Rule 11 sanctions against him; on the record before it, the district court could not have concluded that Biss’s arguments had “no chance of success” (even if the Fourth Circuit sympathizes with its frustration).
  • When Defense Distributed put CAD files on the internet for a 3D-printable single-shot pistol back in 2013, the feds went after them for violating international arms-trafficking laws. Because nothing on the internet ever really goes away, the files remain widely available, even though Defense Distributed remains prohibited from sharing them. In the latest update to this First/Second Amendment saga, the Fifth Circuit (over a dissent) issues a rare mandamus order, instructing the district court to undo its partial severance and transfer of claims against the New Jersey AG to the District of New Jersey.
  • The Federal Reporter abounds with ways lawyers can lose their cases. But district judges within the Fifth Circuit can lose cases too—in the sense of reassignment to different jurists. And if you preside over an antitrust case while criticizing antitrust law and suggesting that Standard Oil wasn’t a real monopoly …
  • By a vote of 2 to 1, the Fifth Circuit dissolves a district court’s nationwide preliminary injunction of Executive Order 14043, which requires all federal executive branch employees to get vaccinated against COVID-19. Any employees who get fired for refusing the vaccine can ultimately be reinstated with backpay if the suit is successful, so they don’t face irreparable harm in the meantime.
  • Man flees from police through several downriver Michigan communities, winds up in Detroit River (in January) and, after a bit of a struggle, submits to arrest. When he’s handcuffed facedown and no longer resisting, one or maybe two officers allegedly kick him in the face repeatedly, breaking his nose. Officer: Okay, but he said he couldn’t be 100 percent sure who kicked him. Qualified immunity? District court: Nope. Sixth Circuit: Nope (on jurisdictional grounds). Concurrence: Nope (on the merits).
  • Landlord: Minnesota’s COVID-19 eviction moratorium prevented me from evicting a tenant who “operated a car and boat repair shop … in violation of city ordinances” and others who “threw raucous parties.” An unconstitutional taking? A Contract Clause violation? District court: Party on, raucous dudes! I’m throwing this complaint out. Eighth Circuit: Turn the music down at least. The complaint at least states a cause of action. Remanded.
  • Randolph County, Mo. court clerk refuses to give 17-year-old an application to obtain judicial permission to get an abortion without notifying her parents. Can she sue the clerk? Clerk: The judge told me to do that! Eighth Circuit: If that’s so, the clerk is protected by quasi-judicial immunity, but the judge says he doesn’t remember the case and wouldn’t usually give such a direction. So (over a dissent) no QJI. And, because the right to apply for judicial permission for abortion without parental notice is clearly established, no qualified immunity either.
  • Creighton University fraternity brothers get pledge black-out drunk and high on marijuana at chapter house and then leave him on campus at 1 a.m. He wanders into the dorm room of a random student and slashes her across the neck with a pocketknife. (She survives.) Can she sue the fraternity? The Eighth Circuit says no.
  • Man steals pistol from his parents, starts driving from Wyoming to Washington, DC, with vague plan to shoot then-President Trump. When he reaches Nebraska, he abandons his plan, calls his dad, and accepts his dad’s advice to return home and seek psychiatric help. Yikes! He’s convicted (and sentenced to time served—20 months) of making a threat against the president based on hearsay testimony from medical staff about the phone call with his dad. Eighth Circuit: Doesn’t seem like this was the best use of prosecutorial resources, but the conviction stands.
  • Oklahoma dental anesthesiologists sue the Oklahoma Board of Dentistry after their requests for specialty licenses are denied (they had wanted to use the licenses in advertisements). Tenth Circuit: But Oklahoma changed the law and the Board says it will now grant the licenses if the dentists reapply, mooting their prospective claims. As for their retrospective claims for damages, the dentists managed to waive all those arguments on appeal.
  • After two Palm Beach County, Fla. firefighters are disciplined for criticizing their union’s executive vice president in violation of the department’s social-media policy, the fire fighters sue, alleging a variety of First Amendment theories. Eleventh Circuit: And their free speech and overbreadth claims can go forward. Their vagueness and free association claims, however, are out.
  • Allegation: Without warning, Madison County, Ala. officer body slams suicidal, non-resisting veteran on his head, causing serious neck injury (requiring the surgical removal of a vertebra, insertion of a metal rod, and fusion of two remaining vertebrae). Eleventh Circuit: The excessive force claim against the officer should not have been dismissed. And, because the then-sheriff apparently never investigated or disciplined officers who used excessive force, the claim for supervisory liability shouldn’t have been dismissed either.

On Brittany Coleman’s 25th birthday, Brookside, Ala. police pulled her over for a bogus infraction. Then they handcuffed her and forced her to stand in the hot sun for no reason while they searched every nook and cranny of her car for over 30 minutes. Finding nothing, they falsely charged Brittany with marijuana possession as a pretext to tow her car. Even though the charge was dropped, she was forced to pay nearly $1k in towing fees and court costs—making her just one of thousands of victims of the police department’s predatory pursuit of profit. In 2020, the last year for which Brookside has made numbers available, the town got 49 percent of its revenue from fines and forfeitures—a more than 1,000% increase in such revenues since 2017. This week, IJ filed a class action. Read all about it in AL.com.

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Short Circuit: A Roundup of Recent Federal Court Decisions

Please enjoy the latest edition of Short Circuit, a weekly feature from the Institute for Justice.

New on the Short Circuit podcast: A special live edition on the D.C. Circuit with former D.C. Circuit clerks (as well as frequent Supreme Court arguers) Lisa Blatt, Kelsi Brown Corkran and Paul Clement.

  • Cemetery company buys 180-acre property in Readington Twp., N.J. (that is zoned for cemetery use) and makes significant concessions to township officials: 73 acres to be available for public use, no herbicides or pesticides, preexisting buildings to be renovated, no headstones visible to passersby, and more. Officials: Yeah, but still. No permit for you. District court: A state law that says localities must consent to new cemeteries is unconstitutional because it gives officials “unfettered discretion” to reject applicants for any reason, including “cronyism, economic protectionism, ethnic or racial bias, or a preference for a particular religion.” Third Circuit (nonprecedentially): Reversed. The law gives discretion to local legislators—not police, judges, or juries—so it’s fine.
  • After a trip to the Supreme Court, the question of whether Baltimore officials’ suit against 26 multinational fossil fuel companies over climate change (and attendant floods, heat waves, auto accidents, and power outages within city limits) will proceed in state or federal court returns to the Fourth Circuit. Which, over the course of 93 pages, reviews the defendants’ eight distinct arguments for federal jurisdiction and rejects all of them. To Baltimore City Circuit Court!
  • After the Fairfax County School Board in Virginia eliminated standardized tests from the admissions criteria for the prestigious Thomas Jefferson High School for Science & Technology, Asian-American enrollment dropped from an average of 71% to 54% for the class of 2025. District Court: Which violates equal protection. Fourth Circuit (with concurrence and dissent): The ruling is stayed pending appeal.
  • Attorney Steven Biss is most widely known for filing frivolous lawsuits on behalf of former congressman Devin Nunes against, among others, The Washington Post, Esquire, CNN, and a Twitter cow. As a result, like the boy who cried wolf, judges tend not to give him the benefit of the doubt. But at least in this Fourth Circuit case, the trial court was wrong to impose Rule 11 sanctions against him; on the record before it, the district court could not have concluded that Biss’s arguments had “no chance of success” (even if the Fourth Circuit sympathizes with its frustration).
  • When Defense Distributed put CAD files on the internet for a 3D-printable single-shot pistol back in 2013, the feds went after them for violating international arms-trafficking laws. Because nothing on the internet ever really goes away, the files remain widely available, even though Defense Distributed remains prohibited from sharing them. In the latest update to this First/Second Amendment saga, the Fifth Circuit (over a dissent) issues a rare mandamus order, instructing the district court to undo its partial severance and transfer of claims against the New Jersey AG to the District of New Jersey.
  • The Federal Reporter abounds with ways lawyers can lose their cases. But district judges within the Fifth Circuit can lose cases too—in the sense of reassignment to different jurists. And if you preside over an antitrust case while criticizing antitrust law and suggesting that Standard Oil wasn’t a real monopoly …
  • By a vote of 2 to 1, the Fifth Circuit dissolves a district court’s nationwide preliminary injunction of Executive Order 14043, which requires all federal executive branch employees to get vaccinated against COVID-19. Any employees who get fired for refusing the vaccine can ultimately be reinstated with backpay if the suit is successful, so they don’t face irreparable harm in the meantime.
  • Man flees from police through several downriver Michigan communities, winds up in Detroit River (in January) and, after a bit of a struggle, submits to arrest. When he’s handcuffed facedown and no longer resisting, one or maybe two officers allegedly kick him in the face repeatedly, breaking his nose. Officer: Okay, but he said he couldn’t be 100 percent sure who kicked him. Qualified immunity? District court: Nope. Sixth Circuit: Nope (on jurisdictional grounds). Concurrence: Nope (on the merits).
  • Landlord: Minnesota’s COVID-19 eviction moratorium prevented me from evicting a tenant who “operated a car and boat repair shop … in violation of city ordinances” and others who “threw raucous parties.” An unconstitutional taking? A Contract Clause violation? District court: Party on, raucous dudes! I’m throwing this complaint out. Eighth Circuit: Turn the music down at least. The complaint at least states a cause of action. Remanded.
  • Randolph County, Mo. court clerk refuses to give 17-year-old an application to obtain judicial permission to get an abortion without notifying her parents. Can she sue the clerk? Clerk: The judge told me to do that! Eighth Circuit: If that’s so, the clerk is protected by quasi-judicial immunity, but the judge says he doesn’t remember the case and wouldn’t usually give such a direction. So (over a dissent) no QJI. And, because the right to apply for judicial permission for abortion without parental notice is clearly established, no qualified immunity either.
  • Creighton University fraternity brothers get pledge black-out drunk and high on marijuana at chapter house and then leave him on campus at 1 a.m. He wanders into the dorm room of a random student and slashes her across the neck with a pocketknife. (She survives.) Can she sue the fraternity? The Eighth Circuit says no.
  • Man steals pistol from his parents, starts driving from Wyoming to Washington, DC, with vague plan to shoot then-President Trump. When he reaches Nebraska, he abandons his plan, calls his dad, and accepts his dad’s advice to return home and seek psychiatric help. Yikes! He’s convicted (and sentenced to time served—20 months) of making a threat against the president based on hearsay testimony from medical staff about the phone call with his dad. Eighth Circuit: Doesn’t seem like this was the best use of prosecutorial resources, but the conviction stands.
  • Oklahoma dental anesthesiologists sue the Oklahoma Board of Dentistry after their requests for specialty licenses are denied (they had wanted to use the licenses in advertisements). Tenth Circuit: But Oklahoma changed the law and the Board says it will now grant the licenses if the dentists reapply, mooting their prospective claims. As for their retrospective claims for damages, the dentists managed to waive all those arguments on appeal.
  • After two Palm Beach County, Fla. firefighters are disciplined for criticizing their union’s executive vice president in violation of the department’s social-media policy, the fire fighters sue, alleging a variety of First Amendment theories. Eleventh Circuit: And their free speech and overbreadth claims can go forward. Their vagueness and free association claims, however, are out.
  • Allegation: Without warning, Madison County, Ala. officer body slams suicidal, non-resisting veteran on his head, causing serious neck injury (requiring the surgical removal of a vertebra, insertion of a metal rod, and fusion of two remaining vertebrae). Eleventh Circuit: The excessive force claim against the officer should not have been dismissed. And, because the then-sheriff apparently never investigated or disciplined officers who used excessive force, the claim for supervisory liability shouldn’t have been dismissed either.

On Brittany Coleman’s 25th birthday, Brookside, Ala. police pulled her over for a bogus infraction. Then they handcuffed her and forced her to stand in the hot sun for no reason while they searched every nook and cranny of her car for over 30 minutes. Finding nothing, they falsely charged Brittany with marijuana possession as a pretext to tow her car. Even though the charge was dropped, she was forced to pay nearly $1k in towing fees and court costs—making her just one of thousands of victims of the police department’s predatory pursuit of profit. In 2020, the last year for which Brookside has made numbers available, the town got 49 percent of its revenue from fines and forfeitures—a more than 1,000% increase in such revenues since 2017. This week, IJ filed a class action. Read all about it in AL.com.

The post Short Circuit: A Roundup of Recent Federal Court Decisions appeared first on Reason.com.

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Palladium, Platinum Soar After London Market Blocks Russian Products

Palladium, Platinum Soar After London Market Blocks Russian Products

First Russian gold and silver, then diamonds, now platnium and palladium.

On Friday, newly refined Russian platinum and palladium was suspended from trading in London, denying Russia access to the metals’ biggest trade hub in the latest in a growing list of measures against Russian interests because of the conflict in Ukraine. Of course, the Russian physical metal ban also means that commodity traders will now have to buy much more for physical – not paper – metal.

The London Platinum and Palladium Market (LPPM), an industry association, said the situation in Ukraine prompted it to review its list of “good delivery” refiners accredited to deliver metal into the London trading system. The LPPM said it would suspend with immediate effect both Russian refiners on its list, JSC Krastsvetmet and the Prioksky Plant of Non-Ferrous Metals.

The suspension blocks platinum and palladium produced by these refiners after April 8 from trading in London, though products they made while accredited remain eligible to trade, the LPPM said.

The decision comes a month after a similar industry group, the London Bullion Market Association (LBMA), suspended the accreditation of Russian refiners, blocking new Russian gold and silver from London.

Prices of palladium surged as much as 11%, with traders fearing the move could worsen a shortage of the metal automakers use in exhaust pipes to reduce emissions.

Just how reliant is the world on Russian metals? Russia’s Norilsk Nickel produces 25-30% of the world’s palladium supply and about 10% of platinum, which is also used to curb vehicle emissions as well as in other industries and to make jewellery. The company’s website says that it sends metals to Krastsvetmet, Prioksky and another refinery, Uralintech, for refining.

A source close to Nornickel said the LPPM decision would restrict its ability to sell to banks but sales to manufacturers, which form the bulk of its business, would be unaffected. However, speaking to Reuters, industry sources in London said the move increases pressure on manufacturers to reject Russian platinum and palladium similar to what happened with Russian oil, which just means even higher prices.

Indeed, recyclers and miners in South Africa and North America, the other main producers, stand to benefit from any boycott of Russian material. 

The European Union on Friday adopted its fifth package of sanctions, including bans on the import of coal, wood, chemicals and other products.  EU governments have also frozen about 30 billion euros ($32.6 billion) of assets linked to oligarchs and other sanctioned people with ties to the Kremlin. read more

Tyler Durden
Fri, 04/08/2022 – 15:35

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In Threatening Disney Over Copyrights, House Republicans Are Right for the Wrong Reasons


dreamstime_l_33028497

Republicans are reportedly fed up with The Walt Disney Company for its perceived “far-left activis[m]” and “giv[ing] in to the woke mob.” As a result, they are considering retaliating by refusing to legally extend copyright terms that would apply to Disney characters like Mickey Mouse. If allowed to lapse, Mickey would be in the public domain as soon as January 1, 2024.

Punishing a company for political speech is wrong and arguably an abuse of power. Instead, Republicans should allow the copyright to lapse because it’s simply the right thing to do, specifically when considering the constitutional purpose of copyright law.

As National Review reported Thursday, Republicans in the House of Representatives are looking to punish Disney for its recent opposition to Florida’s controversial Parental Rights in Education law. Detractors have referred to the bill, which Gov. Ron DeSantis signed into law in March, as the “Don’t Say Gay” bill for its admonitions against “classroom discussion about sexual orientation or gender identity…in a manner that is not age-appropriate…for students.” While Republicans insist that the law merely formalizes the common-sense principle that any talk about sex and sexuality should be conducted only with an appropriate audience, the vagueness of the wording threatens to stifle even the slightest mention of the topics in the classroom.

Disney, which runs its largest theme park in Florida, said nothing before the bill passed the state Legislature, which ironically led to widespread condemnation from Disney employees over the company’s silence. After the bill’s passage, Disney CEO Bob Chapek apologized for the company’s lack of response and stated that it was Disney’s wish that the law be repealed.

In response, House Republicans including Indiana’s Jim Banks and Ohio’s Jim Jordan are threatening to let Disney’s copyright on Mickey Mouse run out without passing any legislation that would lengthen copyright terms. Currently, the law stipulates that for works published before 1978, copyright lasts 95 years from the date of publication. Mickey’s first published appearance was the 1928 silent short Steamboat Willie, meaning his copyright term lasts until the end of its 95th year, 2023.

But copyright law was not always so generous. Article I, Section 8 of the U.S. Constitution gave Congress the power to “secur[e] for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.” The first such law, the Copyright Act of 1790, established a period of 14 years, with the option to renew for another 14 if the author was still alive after the first period lapsed. When Walt Disney released Steamboat Willie, those terms had doubled to 28 years each, meaning that Mickey Mouse would become fair game by 1984. But Congress has since extended those terms twice—each time by 20 years, and each time right before Mickey’s copyright was set to lapse.

But allowing Disney, a worldwide mega-conglomerate, to hold onto the exclusive rights to one of its characters for decades upon decades, is antithetical to the purpose of copyright in the first place.

The Constitution’s stated purpose in allowing the establishment of copyrights was not to financially benefit publishers, but rather to “promote the progress of science and useful art.” In other words, copyrights were not intended to be century-long monopolies but to spur innovation. Keeping Mickey Mouse under the sole custody of one company, despite the fact that Steamboat Willie itself borrowed from films of its day, is completely contrary to the spirit of the Constitution, as well as free enterprise. Walt Disney was not guaranteed 95 years of exclusivity in 1928, and he still saw fit to release Steamboat Willie—clearly, the existing laws did not deter innovation in animation.

In 2012, Derek Khanna, a staffer with the House Republican Study Committee (RSC), drafted a memo that called for an overhaul of the U.S. copyright structure. Based on the premise that the U.S.’ copyright laws do not currently spur innovation, the document advocated for sharply limiting copyright terms, as well as expanding exceptions like fair use and lowering the punitively high dollar amounts that can be assessed for violations (the likes of which Disney jealously polices).

But the memo rankled lobbying groups for content-creating industries. The RSC retracted the memo within a day, and Khanna was fired. Ironically, the chairman of the RSC at the time was Jim Jordan, the Congressman who now attests that “Congress should not add to Disney’s 90+ years of federal copyright protection to incentivize its new far left agenda.” Ideally, Congress would not give any company 90 years of copyright protection, regardless of its political agenda. By singling out Disney for its political speech as the reason not to carve out further sweetheart deals for the entertainment industry, Jordan looks to be doing the right thing for seemingly corrupt reasons.

“I can’t think of an idea that’s so facially unconstitutional,” Khanna told Reason this week after the news broke. “[Jordan] is threatening to expire Disney—yes, copyright should expire, and that’s what the [RSC memo] said. But it was equal for everyone. I would never sanction this activity.”

The post In Threatening Disney Over Copyrights, House Republicans Are Right for the Wrong Reasons appeared first on Reason.com.

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In Threatening Disney Over Copyrights, House Republicans Are Right for the Wrong Reasons


dreamstime_l_33028497

Republicans are reportedly fed up with The Walt Disney Company for its perceived “far-left activis[m]” and “giv[ing] in to the woke mob.” As a result, they are considering retaliating by refusing to legally extend copyright terms that would apply to Disney characters like Mickey Mouse. If allowed to lapse, Mickey would be in the public domain as soon as January 1, 2024.

Punishing a company for political speech is wrong and arguably an abuse of power. Instead, Republicans should allow the copyright to lapse because it’s simply the right thing to do, specifically when considering the constitutional purpose of copyright law.

As National Review reported Thursday, Republicans in the House of Representatives are looking to punish Disney for its recent opposition to Florida’s controversial Parental Rights in Education law. Detractors have referred to the bill, which Gov. Ron DeSantis signed into law in March, as the “Don’t Say Gay” bill for its admonitions against “classroom discussion about sexual orientation or gender identity…in a manner that is not age-appropriate…for students.” While Republicans insist that the law merely formalizes the common-sense principle that any talk about sex and sexuality should be conducted only with an appropriate audience, the vagueness of the wording threatens to stifle even the slightest mention of the topics in the classroom.

Disney, which runs its largest theme park in Florida, said nothing before the bill passed the state Legislature, which ironically led to widespread condemnation from Disney employees over the company’s silence. After the bill’s passage, Disney CEO Bob Chapek apologized for the company’s lack of response and stated that it was Disney’s wish that the law be repealed.

In response, House Republicans including Indiana’s Jim Banks and Ohio’s Jim Jordan are threatening to let Disney’s copyright on Mickey Mouse run out without passing any legislation that would lengthen copyright terms. Currently, the law stipulates that for works published before 1978, copyright lasts 95 years from the date of publication. Mickey’s first published appearance was the 1928 silent short Steamboat Willie, meaning his copyright term lasts until the end of its 95th year, 2023.

But copyright law was not always so generous. Article I, Section 8 of the U.S. Constitution gave Congress the power to “secur[e] for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.” The first such law, the Copyright Act of 1790, established a period of 14 years, with the option to renew for another 14 if the author was still alive after the first period lapsed. When Walt Disney released Steamboat Willie, those terms had doubled to 28 years each, meaning that Mickey Mouse would become fair game by 1984. But Congress has since extended those terms twice—each time by 20 years, and each time right before Mickey’s copyright was set to lapse.

But allowing Disney, a worldwide mega-conglomerate, to hold onto the exclusive rights to one of its characters for decades upon decades, is antithetical to the purpose of copyright in the first place.

The Constitution’s stated purpose in allowing the establishment of copyrights was not to financially benefit publishers, but rather to “promote the progress of science and useful art.” In other words, copyrights were not intended to be century-long monopolies but to spur innovation. Keeping Mickey Mouse under the sole custody of one company, despite the fact that Steamboat Willie itself borrowed from films of its day, is completely contrary to the spirit of the Constitution, as well as free enterprise. Walt Disney was not guaranteed 95 years of exclusivity in 1928, and he still saw fit to release Steamboat Willie—clearly, the existing laws did not deter innovation in animation.

In 2012, Derek Khanna, a staffer with the House Republican Study Committee (RSC), drafted a memo that called for an overhaul of the U.S. copyright structure. Based on the premise that the U.S.’ copyright laws do not currently spur innovation, the document advocated for sharply limiting copyright terms, as well as expanding exceptions like fair use and lowering the punitively high dollar amounts that can be assessed for violations (the likes of which Disney jealously polices).

But the memo rankled lobbying groups for content-creating industries. The RSC retracted the memo within a day, and Khanna was fired. Ironically, the chairman of the RSC at the time was Jim Jordan, the Congressman who now attests that “Congress should not add to Disney’s 90+ years of federal copyright protection to incentivize its new far left agenda.” Ideally, Congress would not give any company 90 years of copyright protection, regardless of its political agenda. By singling out Disney for its political speech as the reason not to carve out further sweetheart deals for the entertainment industry, Jordan looks to be doing the right thing for seemingly corrupt reasons.

“I can’t think of an idea that’s so facially unconstitutional,” Khanna told Reason this week after the news broke. “[Jordan] is threatening to expire Disney—yes, copyright should expire, and that’s what the [RSC memo] said. But it was equal for everyone. I would never sanction this activity.”

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The FBI Decided Not To Knock Down a Suspect’s Front Door Because ‘It Was an Affluent Neighborhood’


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The U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments yesterday in United States v. Abou-Khatwa, an insurance fraud case. While most of the argument focused on D.C. insurance broker Tarek Abou-Khatwa’s appeal of his 2019 conviction, toward the end Judge Patricia Millett brought up an aspect of the case that troubled her: When FBI agents served a search warrant at Abou-Khatwa’s home in Kalorama Heights, a swanky D.C. neighborhood “favored by diplomats and power brokers,” there was no answer at the door. But instead of breaching the front door, the agents went around the back to preserve “the aesthetics” of an “affluent neighborhood.”

While that issue was not part of Abou-Khatwa’s appeal, Millett said, “I found this deeply disturbing.” When it became clear that a forced entry was necessary, an FBI agent testified, “the decision was made, since it was an affluent neighborhood,” to do it inconspicuously. “Due to the aesthetics of the neighborhood,” he said, “we decided to use a rear entrance so as to maintain the integrity of the front of the residence.”

Addressing Justice Department attorney Finnuala Tessier, Millett asked, “Are you aware that the FBI has a policy of deciding not to break down the front doors in rich neighborhoods?” Tessier replied that she “was not aware of that.” While “I don’t mean to blindside you,” Millett said, “this is such outrageous behavior by the FBI.” If “there really is a policy out there that in nonaffluent neighborhoods we’ll break down the front door, but for the rich people we’ll go in quietly in the back door,” she said, “that’s deeply troubling,” and “it’s shocking to me that it didn’t get more attention.”

Judge Robert Wilkins thanked Millett for raising the issue. “I was a public defender here for 10 years,” he said. “I can’t tell you how many times my clients had their front doors bashed in. I don’t remember a single time where any agent or police officer was worried about the aesthetics of what their house would look like after they executed a search or arrest.”

When Slate‘s Mark Joseph Stern noted these comments on Twitter, Jabari-Jason Tyson-Phipps, an attorney and former Foreign Service special agent, replied: “I can tell you that is not protocol. The problem is there are two justice systems: 1 for poor people and minorities and 1 for rich people and generally white people. You see it when you are one of the few black agents. Everyone is not equal.”

It’s not clear whether the FBI agents who searched Abou-Khatwa’s house were doing him a favor by eschewing a front-door entry. The agent’s testimony makes it sound as if the main concern was the impact that knocking down Abou-Khatwa’s front door would have on his wealthy neighbors.

Either way, the rationale suggests that people lucky enough to live in places like Kalorama Heights, where the median household income is about $175,000 and nearly three-quarters of the residents are white, but unlucky enough to attract the FBI’s attention can expect better treatment than people who live in, say, Anacostia, where the median household income is about $22,000 and 93 percent of the residents are black. While that would be true regardless of the suspect’s race, such a class-based distinction is apt to have a racially disproportionate impact, as Tyson-Phipps notes.

That point aside, the agent’s concern about neighborhood “aesthetics,” if it reflects a broader practice, means that people who can easily afford to fix the damage caused by an FBI raid are apt to have lower bills than people of modest means who would struggle to cover the expense. It also means that rich people are less likely to be humiliated by a conspicuous front-door entry because it would bother the neighbors.

Tessier, the Justice Department lawyer, did not try to defend the FBI’s wealth-based distinction between criminal suspects. “I will pass that on to my management,” she said. “I understand the court’s concern. I understand why it’s upsetting to the court.”

The post The FBI Decided Not To Knock Down a Suspect's Front Door Because 'It Was an Affluent Neighborhood' appeared first on Reason.com.

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No Convictions For FBI-Directed ‘White Supremacists’: Whitmer Kidnapping Suspects Acquitted, Jury Deadlocked In Political Prosecution

No Convictions For FBI-Directed ‘White Supremacists’: Whitmer Kidnapping Suspects Acquitted, Jury Deadlocked In Political Prosecution

In a system with a 98%+ conviction rate, where grand juries will indict a ham sandwich – as the old saying goes – the federal government failed to secure a single conviction in the case against four men accused of plotting to kidnap Michigan’s Democratic Gov. Gretchen Whitmer.

The massive prosecutorial failure (which shouldn’t have been a surprise given the absurd levels of corruption and criminality exposed among the FBI agents who led the investigation, behavior that ultimately led to the lead investigating agent being fired by the bureau) will unquestionably undermine the Biden Administration’s claim that far-right ‘white supremacist’ terror is the biggest internal threat to the US.

Two of the four men were acquitted Friday for their role in the alleged plot (which, in reality, was cooked up by a gang of confidential informants embedded within the group, one of whom rose to second-in-command), while the other two ultimately faced a hung jury, according to the Associated Press.

The jury’s verdicts against Daniel Harris and Brandon Caserta were read in the federal court in Grand Rapids, Michigan, in the case presided over by U.S. District Judge Robert Jonker. Jurors said they couldn’t agree on verdicts again Adam Fox and Barry Croft Jr. Prosecutors described Fox as a ringleader of an anti-government group.

Michigan AG Dana Nessel has gone to great lengths to paint the men as “extremists” and “white supremacists” during interviews with friendly media outlets, like NPR.

But in an interview with NPR, Michigan Attorney General Dana Nessel said multiple white supremacist and anti-government groups acted “in concert based on a shared extreme ideology.”

“The people that we charged are affiliated with this Wolverine Watchmen group,” Nessel said, adding that it is a Michigan-based group. “But there are multiple white supremacy groups and militia groups that have been acting in accordance with one another.”

Prosecutors relied on testimony from undercover agents, an informant and two men who pleaded guilty to the plot during the trial. Jurors also read and heard secretly recorded conversations, violent social media posts and chat messages. However, their defense lawyers effectively argued that the scheme had been dreamed up by government agents and informants who had been embedded within the group specifically to manipulate the men.

Get ready for the mainstream media to lash out at America’s justice system once again (although this time, it won’t be because of alleged police brutality).

Tyler Durden
Fri, 04/08/2022 – 15:03

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Buchanan: Who Wins, Who Loses Gen. Milley’s Long War?

Buchanan: Who Wins, Who Loses Gen. Milley’s Long War?

Authored by Pat Buchanan,

Speaking of the seven-week war in Ukraine ignited by Vladimir Putin, Gen. Mark Milley, chairman of the Joint Chiefs of Staff, is warning us to expect a war that lasts for years.

“I do think this is a very protracted conflict … measured in years,” Milley told Congress.

“I don’t know about a decade, but at least years, for sure.”

As our first response, said Milley, we should build more military bases in Eastern Europe and begin to rotate U.S. troops in and out.

Yet this sounds like a prescription for a Cold War II that America ought to avert, not fight. For the territorial integrity and sovereignty of Ukraine, while a declared goal of U.S. policy, is not a vital U.S. interest to justify risking a calamitous war with Russia.

Proof of that political reality lies in political facts.

For 40 years of the Cold War, Ukraine was an integral part of the Soviet Union. In 1991, Bush I warned Ukrainian secessionists, who wanted to sever ties to Russia, not to indulge such “suicidal nationalism.”

And though we brought 14 new nations into NATO after 1991, Bill Clinton, George W. Bush and Barack Obama never brought in Ukraine.

Indeed, during the seven weeks of this war, President Joe Biden has refused to transfer to Ukraine the 28 MIG-29s that Poland offered to make available, if the U.S. would replace the Polish MIGs with U.S. fighter jets.

Biden has warned that this could ignite a collision with Russia that could lead to World War III. And he is not going to risk a third world war that could escalate to nuclear war — for Ukraine.

What is Biden saying by denying the MIGs to Ukraine?

That preventing Russia from amputating Donbas, Crimea and the Black Sea coast of Ukraine is not a U.S. interest so vital as to be worth our risking war with Russia. Ukraine is not only outside NATO; it is outside the perimeter of U.S. vital interests justifying war.

This crisis in Ukraine is calling forth the larger question:

For whom and for what should the United States go to war with a nation with a larger nuclear arsenal than our own, but which does not directly threaten us?

Currently, the Beltway war hawks and neocons are bristling with demands the U.S. send the MIGs to Ukraine, and the S-300 air-defense system, and anti-ship missiles to sink Russia’s Black Sea fleet.

They tell us Putin is blustering and bluffing when he suggests that Moscow might use tactical nuclear weapons rather than accept defeat and humiliation in Ukraine.

Yet, looking at a cost-benefit analysis of continuing this war, it would appear that the sooner it ends, the better.

For who would be the likely winners and the losers of Milley’s “protracted conflict” that will last “at least years for sure”?

The greatest losers would be the nation and people of Ukraine.

Already, in seven weeks, 10 million Ukrainians have been uprooted from their homes, and 4 million of them have fled the country. That is a fourth of the nation uprooted, and a tenth lost to Ukraine.

Thousands of Ukrainian soldiers and civilians have died resisting the invasion. Thousands may have been murdered. Cities like Kharkiv have been horribly damaged, with Mariupol on the Sea of Azov destroyed.

President Volodymyr Zelensky’s willingness to negotiate with Putin after the proven atrocities and to accept temporary occupation of part of Ukraine suggests that he knows that, from here on out, Ukraine, which has won the first battles, could steadily lose the longer war.

Indeed, if the known huge losses for Ukraine came from the first seven weeks of fighting, what will be the losses from a second seven weeks, or a third, on the bloody road to Milley’s long war?

Putin’s Russia is a second loser in this war.

The initial invasion failed to capture Kiev or Kharkiv. The Russian army around Kiev has departed and, reportedly, many thousands of Russian troops have been killed, wounded, captured or gone missing.

The Russian economy is suffering from severe sanctions.

Yet over 80% of the Russian people still support Putin and his war. And Russia’s renewed drive into the Donbas and to take the Black Sea coast of Ukraine from Crimea to Odessa is not yet lost.

But while Ukraine and Russia have suffered greatly, the U.S. and NATO have suffered barely at all. Nor has China, which stands to be the major beneficiary when a bleeding, isolated Russia goes in search of support.

What Americans have to worry about is the long war that Gen. Milley is predicting, and the possibility that Russia’s continued bleeding causes it to resort to tactical nuclear weapons to end the losses and humiliation and prevent an outright defeat.

Thus, the sooner this war ends, the better for us and our friends — even if it means having to talk to the man Biden cannot stop calling a war criminal and clamoring for his prosecution.

Tyler Durden
Fri, 04/08/2022 – 14:47

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“Screaming Recession” – Rates Fully-Priced For Hawkish Fed, Stocks Repositioning For Eventual Contraction

“Screaming Recession” – Rates Fully-Priced For Hawkish Fed, Stocks Repositioning For Eventual Contraction

In the absence of “upside inflation surprises”, Nomura’s Charlie McElligott points out in his latest note this morning that it seems the rates market is approaching “fully-priced” for now for a “hawkish tightening cycle”, and is now focused on the (negative) economic implications of tighter financial conditions.

Locally, the Nomura strategist notes that equities are again bearing the brunt of said Rates move as macro catalyst – particularly the tightening in FCI as expressed per the enormous multi-week spasm in Real Yields – while flow-wise, now feeling the pain of the resumption of Dealer “Short Gamma vs Spot” immersion, leading us back to increasingly spastic intraday overshoots, as the market is just so impossibly convex due to the vast-majority of options flow now being in the 0-5 days-to-expiration bucket on SPX / SPY level.

US Equities continue to do their “Fed Shorting (wide strike) Strangles” range-trade thing between 4200 and 4650, which continues to be the right call for months and particularly as any time we rally, Financial Conditions are too “EASY” and forces an upgrading of “inflation hawk” rhetoric from the Fed (as they are de facto “selling Calls”) which creates overhead resistance…

  • That said, the recent 3-wk Equities directional stabilization off the Op-Ex / March Fed hike lift-off–lows has been very-much in-line with our “front-loaded Fed tightening cycle” analog we ran and have discussed ad nauseum over the course of Q1.

  • Per said analog, the median return of the prior 8 instances of this trigger sees that within the first two months after the initial hike of a “4+ hikes in the first 12m” front-loaded Fed cycle, the max Equities drawdown has been made…and out 6m- and 12m-, we see a grinding “little-bit of everything” rally thereafter…before the full implications of the tightening eventually catches-up with the economy thereafter, of course

Hence, the market focus is seemingly transitioning from its “front-loaded tightening cycle” obsession which began in 4Q21…which as of now, in the absence of new upside inflation data surprises (i.e. next Tuesday’s US CPI release for March), looks increasingly priced-in after such an impulsive shift anticipating “restrictive” Fed policy-rate territory in extremely short-order, with a much higher “terminal” level in ‘23 than anybody thought was possible just weeks ago…

  • 94bps of hiking priced for June shows the market is “locked” on upcoming back-to-back 50bps hikes alongside QT commencement in May

  • 134bps of hikes by July—in other words, pushing towards THREE consecutive 50bps hikes by mid-Summer, while also expecting QT to hit “max caps” by August

  • And now at 223bps of implied hikes by Dec ’22 Fed meeting…

As Nomura’s Andy Chaytor points out, rates are fully-priced for The Fed… 2-year fwd 1mo USD rates are above the Median Fed ‘Dot’ for the first time since 2014…

…and 5-year fwd 5Y rates have pushed above The Fed’s median long-term ‘Dot’ for the first time since the “QT Tantrum” in 2018…

The theme in the US Equities market is that we look to be immersed in the process of “moving-on” from the policy tightening brought about by the inflation- and labor- overshoot, and are now operating under an assumption of US economic contraction / recession eventuality

As the table above shows, the thematic signs of a pre-emptive “Defensive” re-allocation / rotation trade brewing, further confirming the optics of ED$ and OIS curves which are telling us that the market is beginning to position for a “hard-landing” as soon as mid-’23, as the Fed’s plans to run restrictive policy simultaneously with a heavy-handed balance-sheet run-off will push the economy into “Recession”.

And critically, look at US Eq Risk-Prem / Thematic behaviors – where the only of our main “Factor Pairs” in the green so far in April are “Low Risk,” “Size” (Big minus Small), “Quality,” “Momentum” and “Dividend,” all screaming recession / contraction…while High Beta / Spec is again getting hit hard.

So where do we go from here?

As per Nomura Economic Quadrant work, we have been in the “Slowdown” phase for months… but the most likely course from here is into “Contraction” a.k.a. “Recession,” as tighter financial conditions begin to bite…

According to backtested Nomura data, there is a 26% chance of shifting into “contraction” within 3 months.

So from a historical US Equities Factor behavior perspective, what is the trade in the “Contraction / Recession” Quadrant?

Well, it looks a lot like ‘more of the same’ that has been happening this last week…

As we have previously explained – the broad Equities de-risking signal is not curve inversions (although it is a critical part of the overall sequencing, of course)… but instead, is when we get the steepening after inversion.

This pivot from “bear-flattening” / inversion into “steepening” tells you that the market has “smelled the recession,” rushing to price-OUT Fed HIKES and instead, price-IN Fed EASING thereafter, unwinding that hard “bear-flattening” we’ve been immersed within on the “tightening” policy pivot.

(FWIW, the recent steepening was more about how increasingly difficult it is to hold flatteners—hence, profit taking / unwind…I don’t believe this is the move yet)

Ultimately, however, once the Recession is “real” and the market anticipates / front-runs the Fed pivoting again towards QE (mid- / late- ’23?) – there is likely a bull-flattening, which again, from US Equities Factor perspective, looks a lot like the “Long Duration Barbell” of old-times…

Tactically, for now, 4500 remains the key level to watch for the S&P 500

As SpotGamma notes, there is a fair amount of SPY gamma <=450 expiring today (~20% of total gamma) which can expand volatility for today.

If we hold the 4500 level into mid day, then the fuel builds in the bulls favor due to put decay and vanna flows and we could see a fairly strong move higher, with 4550 a reasonable target.

Conversely, a break of 4500, particularly into the close indicates a higher level of risk to markets due to the onset of negative gamma. As mentioned last night, one has to respect that markets have twice now bounced from 4450 despite the elevated IV and elevated negative gamma. The setup was in place for an extended drawdown, but the S&P has held on.

Tyler Durden
Fri, 04/08/2022 – 14:25

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