WTI Drops Below Pre-Saudi-Cut Levels After API Signals Big Product Builds

WTI Drops Below Pre-Saudi-Cut Levels After API Signals Big Product Builds

Oil prices dipped lower today, back to basically unchanged since Saudi’s production cuts were announced as persistent economic uncertainty weighs on the outlook for demand.

Saudi Arabia’s production cuts “will take some supply off the market, but demand will need to continue to rise if we are to see much higher prices,” said Dennis Kissler, senior vice president of trading at BOK Financial Securities.

The next sign we get is from API tonight (after last week’s surprise crude build) for signs of demand slowing.

API

  • Crude -1.71mm (+1.1mm exp)

  • Cushing +1.535mm

  • Gasoline +2.417mm (+200k exp) – biggest build since Feb 2023

  • Distillates +4.50mm (+1.0mm exp) – biggest build since Dec 2022

Crude stocks, according to API, unexpectedly drew-down last week but products saw unexpectedly large builds (distillates biggest weekly build since Dec 22).

Source: Bloomberg

WTI was hovering around $71.50 (pre-Saudi cuts) ahead of the API print and barely moved on the inventory data.

Finally, we note that the Biden administration sold another 1.8 million barrels of crude last week from the SPR – down to a fresh 40-year low.

Tyler Durden
Tue, 06/06/2023 – 16:38

via ZeroHedge News https://ift.tt/b8xokmX Tyler Durden

The Cloward-Piven Strategy

The Cloward-Piven Strategy

Authored by Martin Armstrong via ArmstrongEconomics.com,

Overburden the bureaucracy to break the system, create controlled chaos, usurp power as civil unrest peaks, and offer government aid as the only solution.

This was the basis behind the Cloward-Piven strategy created by sociologists Frances Fox Piven and her husband, Richard Cloward.

The four steps of the Cloward-Piven Strategy:

1. Overload and Break the Welfare System

2. Have Chaos Ensue

3. Take Control in the Chaos

4. Implement Socialism and Communism through Government Force

The couple published their theory in The Nation Magazine on May 2, 1966, entitled “The Weight of the Poor: A Strategy to End Poverty.”

This was a decade of political activism in America. The war in Vietnam was raging on and the alternative hippie lifestyle became prominent as people protested the violence. The Black Freedom Movement and the push for equal civil rights had peaked and helped to end the Jim Crow laws in the South by 1965. The LA race riots, also known as the Watts Rebellion, occurred in 1965 as well after the police beat a black man who was arrested for a DUI. That particular riot lasted for six days and led to 34 deaths, 1,032 injuries, and over 3,000 arrests. This began a string of riots in America where black Americans and supporters clashed with police, similar to the events that occurred after the death of George Floyd that started the Black Lives Matter movement.

We had major political activists such as Martin Luther King Jr. making real change in America. The intelligence agencies had a close eye on him, and his death in 1968 is a topic for another post. On the other side were the likes of Malcom X, who originally did not advocate for peace as King did. The cohesive movement fell apart with mass unrest and no one at the helm. The movement began with African Americans asking for basic human rights and understandable anger. The purpose of the movement, again similar to BLM, became lost, and the government aimed to use the civil unrest to its advantage.

“[T]he strategy we propose, is a massive drive to recruit the poor onto the welfare rolls,” the sociologists wrote in their theory. This theory aimed to overburden social programs at the state level to give the federal government the power to control the people.

“Widespread campaigns to register the eligible poor for welfare aid, and to help existing recipients obtain their full benefits, would produce bureaucratic disruption in welfare agencies and fiscal disruption in local and state governments. These disruptions would generate severe political strains, and deepen existing divisions among elements in the big-city Democratic coalition: the remaining white middle class, the white working-class ethnic groups and the growing minority poor.”

Cloward and Piven noted that civil unrest was necessary to create change and encouraged the government to antagonize the masses. “The poor are most visible and proximate in the local community; antagonism toward them (and toward the agencies which are implicated with them) has always, therefore, been more intense locally than at the federal level.” As the anger brews and protests erupt, the government will lasso in the masses, acted as both the hero and the villain.

“In order to generate a crisis, the poor must obtain benefits, which they have forfeited. Until now, they have been inhibited from asserting claims by self-protective devices within the welfare system: its capacity to limit information, to intimidate applicants, to demoralize recipients, and arbitrarily to deny lawful claims.”

Tell the people that they are victims and instill a sense of entitlement for their neighbor’s assets. Remind the people consistently that they are oppressed and only an equal distribution of wealth can save them from the confines of poverty. Cloward and Piven insisted that hard work could not “elevate the poor en-mass from poverty.”

“The ultimate objective of this strategy–to wipe out poverty by establishing a guaranteed annual income,” the theory clearly stated. The theory stated that the creation of unions was a good start to bargain collectively, but still not enough to solve poverty. “Union leaders have understood that their strength derives almost entirely from their capacity to provide economic rewards to members,” the theory noted. “A federal program of income redistribution has become necessary to elevate the poor en masse from poverty,” meaning a shift away from capitalism entirely.

Cloward and Piven stated that a minimum standard of living must be provided to the people through federal welfare. That right must be guaranteed to end oppression, thereby ensuring Guaranteed Basic Income. Furthermore, there could be no conditions for benefits as it “results in violations of civil liberties.” Therefore, expecting able-bodied people to work would be an attack on the welfare system. The sociologists insisted that most people were in fact eligible for welfare and encouraged the government to advertise in brochures, schools, stores, churches, civic centers, and public housing projects. They even advised the government to send people door-to-door to explain to people that they are oppressed and deserving of GBI as a “civil education drive will lend it legitimacy.”

“As the crisis develops, it will be important to use the mass media to inform the broader liberal community about the inefficiencies and injustices of welfare.” To succeed, the shift away from capitalism required “mass influence” and “publicly visible disruption.” “Crisis can occur spontaneously (e.g., riots) or as the intended result of tactics of demonstration and protest, which either generate institutional disruption or bring unrecognizable eruption to public attention.”

The bigger the crisis, the more power the government could usurp.

They noted that politicians paid attention to massive uprisings, and they had been used to “reinforce the allegiance of growing ghetto constituencies to the national Democratic Administration.” The sociologists noted that the Conservative Republicans would decry a public welfare system and that the Democrats needed to appeal to the emotions of the people over logic. They also urged for “a coalition between poor whites and poor Negroes” to turn the race war into class warfare.

“Once eligibility for basic food and rent grants is established, the drain on local resources persists indefinitely.” Cloward and Piven wanted to overburden the welfare system at the state level to eliminate state rights.

Therefore, under this theory, government is encouraged to market a crisis, antagonize the people, and offer a solution. The only solution being to replace capitalism with socialism or communism by which the people would be entirely dependent on government. You will own nothing and be happy.

Tyler Durden
Tue, 06/06/2023 – 16:20

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Massive Short Squeeze Sends Small Caps Soaring; Bitcoin Bounces Back Bigly

Massive Short Squeeze Sends Small Caps Soaring; Bitcoin Bounces Back Bigly

No US macro data today but European retail sales were not pretty and Canadian building permits plummeted. Nevertheless, US equity futures were conspicuously quiet overnight – too quiet some said. The overnight destruction of a dam in Russia-controlled region of Ukraine didn’t even bother futs.

And then the cash equity market opened and a buying-frenzy suddenly hit Small Caps/Most-Shorted/Regional Banks as The Dow, S&P, and Nasdaq went nowhere.

Spot The Odd One Out!

Bear in mind – perhaps – that the last 3 days have seen Small Caps rise 5% – the last time they did this marked the local top in early Feb…

Source: Bloomberg

Regional banks extended their comeback…

Which is interesting given the massive deposit outflows they are still suffering – even if The Fed is trying to cover it up.

The Fed reports that domestic (large and small) commercial banks saw NSA flows of -$28.4 billion, while SA flows were +$102.5 billion!

As if it needs to be said, non-seasonally-adjusted deposit flows are ‘actual flows’? And why do we care about ‘seasonally-adjusted’ deposits – they aren’t real assets?

For some more context, the deposit delta (between real outflows and SA outflows) since March 1 is now $150BN+

It seems The Fed is using the ‘fog of banking crisis war’ – knowing this data drops late on a Friday night – to pull the wool over depositors and investors eyes.

And all on the back of another huge short squeeze. The biggest 6-day surge in ‘most shorted’ stocks since the local peak in early Feb…

Source: Bloomberg

Notably, the outperformance of Small Caps relative to Nasdaq is a dramatic reversal of the recent trend which lifted the ratio to the all-time high from Feb 2000…

Source: Bloomberg

VIX plunged to fresh cycle lows, tumbling to a 13 handle (lowest since Feb 2020) and VIX1D fell back to single-digits…

Source: Bloomberg

Perhaps the biggest headline of the day was the SEC suing Coinbase, which initially sent bitcoin lower (mimicking yesterday’s Binance reaction), but that quickly ended and Bitcoin ripped higher, erasing all of yesterday’s losses…

Source: Bloomberg

Treasuries were mixed with the long-end outperforming today (2Y +6bps, 30Y -1bp) but the day was very choppy compared to stocks.

Source: Bloomberg

The dollar ended the day unchanged after testing lower then higher intraday. The overnight rally filled the gap down from Friday’s payrolls print, then the selling hit during the US session…

Source: Bloomberg

Gold managed very modest gains today, holding on to yesterday’s bounce-back gains…

Oil prices dropped significantly intraday before bouncing back to end basically at pre-Saudi cut levels…

Finally, as a reminder, the world and their pet rabbit is short S&P futures right now…

Source: Bloomberg

Does make you wonder what happens next?

Tyler Durden
Tue, 06/06/2023 – 16:00

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Rogue Republicans Tank GOP Bills To Spite McCarthy

Rogue Republicans Tank GOP Bills To Spite McCarthy

Eleven House Republicans – most of them in the Freedom Caucus – joined Democrats on Tuesday in voting against a rule to advance four bills attempting to overturn Biden administration regulations to control gas stoves, in order to send a big ‘f-you’ to Speaker Kevin McCarthy for breaking his promises to the Caucus and negotiating a debt deal that largely favors the Democrats.

The move was enough to tank the rule and block the legislation from advancing to the floor.

Just before the vote closed, House Majority Leader Steve Scalise (R-La.) changed his vote to oppose the rule as well so he could bring the rule back up later. The final vote was 206-220.

The revolt made for a dramatic scene on the House floor, where Scalise huddled with more than a dozen conservatives in the back of the chamber in a tense effort to flip votes and allow the bills to advance to the floor. -The Hill

We’re frustrated at the way this place is operating,” said Rep. Matt Gaetz (R-FL).

“We took a stand in January to end the era of the imperial Speakership, and we’re concerned that the fundamental commitments that allowed Kevin McCarthy to assume the Speakership have been violated as a consequence of the debt limit deal. And, you know, the answer for us is to reassert House conservatives as the appropriate coalition partner for our leadership instead of them making common cause with Democrats.”

The Epoch Times explains what’s in two of the GOP bills;

One bill, the Gas Stove Protection and Freedom Act, would prevent the CPSC from banning or substantially raising the price of gas stoves. That agency made a formal request for information related to gas stoves in March.

The other bill, dubbed the Save Our Stoves Act, would keep the Department of Energy from implementing a proposed energy efficiency rule for gas stoves.

Concerns about a ban were ignited in part by comments from CPSC Commissioner Richard Trumka, Jr., to Bloomberg News in January.

“This is a hidden hazard. Any option is on the table. Products that can’t be made safe can be banned,” he said.

Tyler Durden
Tue, 06/06/2023 – 15:25

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In Rebuke To Trump, DeSantis Says “Woke” Is “Existential Threat To Our Society”

In Rebuke To Trump, DeSantis Says “Woke” Is “Existential Threat To Our Society”

Authored by Steve Watson via Summit News,

After Donald Trump proclaimed at the weekend that he doesn’t like the term ‘woke’ because nobody knows what it really means, his GOP challenger Ron DeSantis charged that those who do not treat it as an “existential threat” are missing the point.

Commenting to reporters on Trump’s comments, DeSantis noted “Woke is an existential threat to our society,” adding that “to say it’s not a big deal, that just shows you don’t understand what a lot of these issues are right now.”

DeSantis described woke as a “form of Cultural Marxism,” and “basically a war on the truth,” adding “it’s about putting merit and achievement behind identity politics.”

“As that has infected institutions, and it has corrupted institutions. So, you’ve got to be willing to fight the woke, we’ve done that in Florida, and we proudly consider ourselves the state where woke goes to die,” DeSantis urged.

Watch:

Trump said Friday at a Q&A in Iowa “We have school systems that don’t even want to talk to the parents about their children. You talk about changing gender and things where the child can make a choice and the child can be unbelievably young — the country has gone sick. It’s gone sick. And I don’t like the term ‘woke,’ because I hear the term “woke, woke, woke,” … it’s like just a term they use, and half the people can’t define what it is. 

Trump continued, “you look at these things like women getting competing with men that were men and are men. And out there swimming and setting records. Do you see the records being broken?”

He added “It is so crazy. And that is all woke. I guess they define that as woke. But that’s all woke. We have to bring common sense back to the country. People say, “You are conservative.” Yeah, I am conservative, but more importantly, I’m a person with common sense.

Watch:

Trump has somewhat flip flopped on this, likely because DeSantis has made it such a central part of his campaign. Trump was more than happy to define woke in 2020 before the election:

Still, Trump is leading DeSantis by 28 points according to PredictIt…

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Tyler Durden
Tue, 06/06/2023 – 15:00

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Third Circuit Holds That at Least Some Felons Retain Second Amendment Rights

Today’s en banc decision in Range v. Attorney General so concludes, in a majority opinion by Judge Hardiman, which got the votes of nine of the fifteen judges. The challenger in this case pleaded guilty in 1995 to making a false statement to obtain food stamps; because this was in theory punishable by up to five years in prison under Pennsylvania law, that made him a felon for federal gun law purposes (even though his actual sentence was just three years’ probation plus “$2,458 in restitution, $288.29 in costs, and a $100 fine”). But the logic of the majority opinion suggests that this might apply to many felons, perhaps even including people convicted of violent felonies, at least as I read the court’s rationale.

Judge Ambro, joined by Judges Greenaway and Montgomery-Reeves concurred, but would have excluded felons whose crimes suggest that they “would, if armed, pose a threat to the orderly functioning of society,” such as “murderers, thieves, sex offenders, domestic abusers, and the like.” Judge Greenaway also joined the majority, but the other two did not. (Judge Porter also wrote a separate concurrence focusing on federal power.)

Judges Shwartz, Restrepo, Krause, and Roth dissented, generally arguing that felon disarmament laws are categorically constitutional. Judge Krause’s separate dissent is particularly detailed. I don’t have the time to excerpt the opinions, which are 107 pages long, and contain much detailed historical argument; you can read them here.

It seems to me nearly certain that the Supreme Court will agree to hear the case, perhaps in conjunction with the Fifth Circuit domestic civil restraining order automatic disarmament case, U.S. v. Rahimi. As a practical matter, this is a much more important case than Rahimi (which itself is quite important); the federal government is nearly certain to seek review by the Supreme Court; the decision invalidates a federal statute; there is a circuit split; the broad reasoning of the decision is in tension with the Court’s statements that felon disarmament laws are presumptively constitutional. All of these are factors cutting in favor of Supreme Court review, and put together they make such review extremely likely.

The post Third Circuit Holds That at Least Some Felons Retain Second Amendment Rights appeared first on Reason.com.

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Merck Sues HHS, Claims Drug Price Negotiation Program Violates First and Fifth Amendment

Today, Merck challenged the constitutionality of the Drug Price Negotiation Program for Medicare, under the Inflation Reduction Act. Generally, the word “negotiation” suggests a voluntary transaction between two parties. But negotiating with the government is seldom voluntary. You can’t just walk away. The New York Times describes the process this way:

Experts noted that the negotiation process gives drug makers leeway to reject Medicare’s final offer and walk away without a deal if they are not happy, subject to a tax.

And how much is that “tax”? The amount starts at 186% of the drug’s daily revenue, and increases to 1900% of the drug’s daily revenue. Merck claims that it would have to pay tens of millions of dollars on the first day after it refuses to negotiate, and that amount could escalate to hundreds of millions per day after a few months. Is this a tax? Or a penalty? For those keeping track at home, Congress projected that the exaction, whatever it is, would raise no revenue, since non-compliance would bankrupt any company.

Sounds familiar? This framework reminds me of the Affordable Care Act’s Medicaid Expansion. The Obama Administration gave the states a choice: expand Medicaid or risk losing their entire Medicaid budget. Ultimately, the Court found this spending program was unconstitutionally coercive. Chief Justice Roberts recognized that the states did not actually have a meaningful choice of whether to expand Medicaid. Roberts explained in his controlling opinion:

More importantly, the size of the new financial burden imposed on a State is irrelevant in analyzing whether the State has been coerced into accepting that burden. “Your money or your life” is a coercive proposition, whether you have a single dollar in your pocket or $500.

Of course, Merck is not a state, and the Inflation Reduction Act does not violate the Tenth Amendment. But there are other constitutional provisions at play.

First, Merck raises a claim under the Takings Clause of the Fifth Amendment. Here, the pharmaceutical products are “private property” under Horne v. USDA (2015). Moreover, the drugs are patented, which creates another species of property rights. Here is the crux of the argument:

Under the IRA, the Government will take Merck’s patented products by forcing Merck to provide third parties with “access” to those products at steeply discounted prices. That compelled transfer of title effects a classic, per se taking. See, e.g., Horne, 576 U.S. at 362; Cedar Point Nursery v. Hassid, 141 S. Ct. 2063, 2072 (2021) (taking occurs whether the Government takes property “for itself or someone else”). This Program deprives Merck of the “rights ‘to possess, use and dispose of'” its property. Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419, 435 (1982). Just as the statute in Horne effected a classic per se taking by requiring raisin farmers to turn over a portion of their crop to the Federal Government, see 576 U.S. at 361, the IRA’s forced-sale regime does the same by compelling drug manufacturers to surrender their patented drugs to third parties for the Government’s benefit.

Horne and Cedar Point provided robust protection of property rights. Indeed, Cedar Point–in my view, at least–quietly rewrote decades of Takings Clause precedent. The IRA program is somewhat different from Horne, in that the government is not physically taking the pills from Merck’s factory–like the trucks that showed up to collect the Horne’s raisins. Rather, the federal government is effectively forcing Merck to “negotiate” with Medicare, and then to sell the drugs at that “negotiated” rate. And all of this is done without providing any just compensation. Again, I put scare quotes around “negotiate” because the tax/penalty is so ruinous that there is no actual ground for arms-length bargaining. Your money, or your company’s life.

Congress could, assuming there is a “public use,” simply seize Merck and the drugs it produces pursuant to the Takings Clause, by paying just compensation. Remember, Congress could have seized the Youngstown Sheet & Tube Company, and required it to manufacture steel for the war efforts; the President could not act unilaterally. But taking over Merck, a la Venezuela, would have been politically unpalatable. Congress could have also dictated the prices at which the drugs were sold. But again, such a move would have been a political non-starter. Instead, the program was sold under the cheerful banner of “negotiation.” Sort of like when the exaction that enforced the ACA was labelled a “penalty” rather than a “tax.” Who wants to pay new taxes? But the Inflation Reduction Act’s shortcut runs directly into the Takings Clause.

Merck also argues that they are required to “agree” that HHS’s prices are “fair.” Merck asserts that they are compelled to communicate “state propaganda,” and thereby deceive the public.

In short, when the Government seeks to influence the public, it must do so as a genuine participant in the marketplace of ideas. It cannot seize additional megaphones by commandeering the voices of others. The IRA’s dystopian parody of “negotiation” violates those principles. First, by forcing manufacturers to “agree” with HHS on a “maximum fair price”—as opposed to just forcing manufacturers to sell at that price—the Program compels those businesses to parrot an ideological message inimical to their own views.

In many regards, this case reminds me of the original challenge to the Affordable Care At in 2010. The case is brought by Yaakov Roth of Jones Day, who was one of the lawyers involved with NFIB v. Sebelius. Indeed, we once again have something of a synergy between big business and conservative constitutional jurisprudence (the Takings Clause and compelled speech doctrine). More and more of late, there is a greater disconnect between these pillars, but at least here, all the stars seems to line up.

Stay tuned.

The post Merck Sues HHS, Claims Drug Price Negotiation Program Violates First and Fifth Amendment appeared first on Reason.com.

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U.K. Think Tank Warns Government Not To Get Into E.V. ‘Subsidy Race’


A line of luxury vehicles.

The United Kingdom is courting an automaker to build a new factory within its borders, and it’s willing to spare no expense to do so. In a new report, a British think tank suggests letting the market have a say.

Tata Motors, an Indian conglomerate that owns Jaguar Land Rover, plans to build an electric vehicle (E.V.) battery cell factory somewhere in Europe. Reuters reported in February that the company was deciding between Spain and Great Britain. At that time, the company leaned toward Spain, partly on the basis that the country was spending billions of euros in European Union pandemic relief funds to attract developments by E.V. manufacturers.

Last month, the BBC reported that Tata had since tilted toward the U.K. as the country offered up generous incentives of its own. In “the form of cash grants, energy subsidies and other training and research funding,” plus extra cash to “subsidise, upgrade, and decarbonise” Tata’s existing steel industry, the British government’s largesse is expected to “bring the total incentive package to Tata close to £800m” or $994 million USD.

The U.K. is desperate to build out its own E.V. supply chain: It produces relatively few electric vehicles and components compared to neighboring countries, and in a post-Brexit world, it faces 10-percent tariffs on any batteries it ships to E.U. nations. In a March report, the Society of Motor Manufacturers and Traders, the U.K. automotive industry’s trade association, warned that “Britain’s ability to compete as an electric vehicle (EV) production leader is at risk unless government responds urgently to increasingly fierce international competition.” Darren Jones, chair of the House of Commons Business and Trade Committee, told Bloomberg, “We have no capacity for battery manufacturing, which is essentially the entire future of car production.”

Part of the pressure comes from the United States. The Inflation Reduction Act established tax credits for purchasing E.V.s but required that a certain percent of the vehicles be built domestically from parts sourced in North America. That bit of protectionism, intended to exclude China, also left out the European Union. French President Emmanuel Macron complained in October 2022, “We need a Buy European Act like the Americans, we need to reserve [our subsidies] for our European manufacturers.”

In a report last week, the conservative U.K. think tank Policy Exchange had a plain message for the government: Let the market decide.

Geoffrey Owen, Policy Exchange’s head of industrial policy, wrote in the report that “virtually the whole of the industry is foreign owned” and “run by multinational companies” that “are not necessarily committed to the UK.” Multiple prime ministers over the past 15 years introduced and implemented government programs designed to shore up the country’s E.V. industry. But there was little lasting effect, at least in terms of new factory investment.

“The UK should not engage in a subsidy race with the EU and the US,” Owen cautioned. Instead, he recommends a lighter approach: “Where there are obstacles which discourage investment, such as high energy costs, the government should seek to remove or mitigate them.” More important than targeted subsidies, he argued, is “a greater degree of stability in government policy.”

The U.S. should take the same advice. States continue to shell out billions of dollars each year to attract investment, with little to show in return. And yet, research shows that while government incentives do contribute to a company’s decision on where to put a new development, they’re often not the primary motivating factor. As Owen noted about investment by Asian automakers in countries like Germany, “the principal reason why they went to the EU and not the UK was not the size of the subsidy but the size of the market. Germany had a far bigger auto industry than the UK and was the home to three of the largest European manufacturers – Volkswagen, Daimler Benz and BMW.”

The post U.K. Think Tank Warns Government Not To Get Into E.V. 'Subsidy Race' appeared first on Reason.com.

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DHS Faces Backlash Over App Used To Grant Would-Be Illegal Immigrants Entry To US

DHS Faces Backlash Over App Used To Grant Would-Be Illegal Immigrants Entry To US

Authored by Brad Jones via The Epoch Times,

Critics have accused the Biden administration of downplaying the number of potential illegal immigrants that could enter the United States under two separate programs used to grant “humanitarian parole” to applicants who use a mobile phone app to book appointments at U.S. ports of entry.

U.S. Customs and Border Protection (CBP), under the direction of Department of Homeland Security (DHS) Secretary Alejandro Mayorkas, expanded the CBP One app in April 2022.

Erin Heeter, a DHS spokesperson, told the Epoch Times via email that as of June 1, DHS increased CBP One appointments from 1,000 to 1,250 a day, which amounts to nearly 40,000 appointments per month.

However, it’s unclear how many people are included in such appointments, for example whole families, married couples, or single migrants, which means the actual number of people entering the U.S. on humanitarian grounds could be much higher.

Humanitarian parole allows people to temporarily enter the U.S. if there is a “compelling emergency and there is an urgent humanitarian reason or significant public benefit,” according to U.S. Citizenship and Immigration Services.

In addition, 30,000 humanitarian parole cases a month are already allowed under a program specifically for Cubans, Haitians, Nicaraguans, and Venezuelans and their immediate family members known as CHNV announced in January.

“CHNV is separate, and anyone who is approved through CHNV would be screened, vetted, and if approved, receive an advanced travel authorization to then fly into the U.S., not arrive at a land Port of Entry,” Heeter said.

“CBP One for those in northern Mexico is a tool to request appointments. Each individual or family is assessed on a case-by-case basis once they arrive, not before.”

The border wall near San Diego, Calif., on May 31, 2023. (John Fredricks/The Epoch Times)

According to DHS data, even if only one person per appointment is admitted to the U.S. under both processes, more than 800,000 total migrants per year would be allowed into the country on humanitarian grounds.

The recent increase in appointments is a continuation of the Biden administration’s “expansion of lawful pathways and opportunities to access them, including CBP One appointments,” Heeter said.

“The process cuts out smugglers while also providing a safe, orderly, and humane process for noncitizens to access ports of entry instead of attempting to enter the United States unlawfully. We are continuing to enforce consequences for migrants who cross unlawfully, and those who do not establish a legal basis to remain in the United States will be removed,” she said.

FOIA Request Foiled

Todd Bensman, a senior fellow on national security at the Center for Immigration Studies (CIS) and author of the book “Overrun: How Joe Biden Unleashed the Greatest Border Crisis in U.S. History,” told Epoch Times he has been stonewalled by DHS in his quest for more accurate figures on CBP One entries.

DHS did not comply with Bensman’s Freedom of Information Act (FOIA) request and a subsequent demand letter seeking accurate numbers sent to Mayorkas on March 24 by a group of House Republicans led by U.S. Rep. Tom Tiffany of Wisconsin, said Bensman.

“Mayorkas just blew them off,” he said. “They never got them.”

CIS has since sued CBP demanding it comply with the law regarding the FOIA request and render information about the total number of foreign nationals who have applied for humanitarian parole using the online CBP One system since the program’s inception as a pilot program in 2021, as well as the locations of all foreign airports from which CBP One migrants departed and U.S. airports that received foreign nationals approved through the program, among other details.

The American public has a right to know how many migrants are entering the country on humanitarian grounds using CBP One, Bensman said.

With the May 11 expiration of Title 42, which allowed Border Patrol agents to deny migrants entry into the U.S. during the Covid-19 pandemic for public health reasons, the Biden administration claimed the U.S. would return to tougher Title 8 policies and penalties for migrants who cross the border illegally.

But, that doesn’t appear to be happening, Bensman said.

Migrants captured by US Border Patrol agents go through a processing center near San Diego, Calif., on May 31, 2023. (John Fredricks/The Epoch Times)

Clarity on whether a CBP One “appointment” means one individual or an entire of family of migrants is also key to understanding the scope of this massive new wave of migration, he said.

“It’s important to know how many represent a single appointment. It used to be one person, one appointment as far as I know, and a family of four would have to do four applications,” he said. “I think they have changed that.”

Bensman said humanitarian parole applications via the CBP One app are not the same as asylum claims, which require a “credible fear” of returning to one’s country of origin.

“It’s not an asylum program of any sort. It never was, and it’s never been envisioned as such,” he said.

Bensman said at a recent speaking engagement and book signing in Orange County, California, that although there have been spikes in illegal migration in the past, the sheer magnitude of this wave that began a day after Biden’s inauguration in January, 2021, is unlike any other.

“We have seen nothing like this in American history. This is the worst border crisis,” he said.

“This one is sustained for years now. This one is different.”

If migration continues at current rates, Bensman expects more than 10 million immigrants will have entered illegally by the end of the President Joe Biden’s four-year term.

According to an analysis by the Federation for American Immigration Reform, a record-breaking 5.5 million illegal immigrants crossed into the U.S. under the Biden administration as of October 2022.

‘Smoke and Mirrors’

Manny Bayon, a National Border Patrol Council union leader in San Diego, told the Epoch Times that the Biden administration has orchestrated a “back door deal” for migrants who show up at a port of entry without a pre-arranged appointment on the CBP One app, so they are still able to apply for humanitarian parole.

An entire family of migrants can be processed at each “appointment” and granted humanitarian parole, he said.

DHS is “fudging” the numbers, he said, to make it appear as though the administration’s immigration policies are working smoothly, and that far fewer migrants are entering the country.

Handprints show an illegal border crossing near San Diego, Calif., on May 31, 2023. (John Fredricks/The Epoch Times)

But, that’s not the case, he said.

“It’s all smoke and mirrors,” Bayon said. “When they’re actually going through a port of entry and being released, they’re undocumented migrants but they’re not illegal anymore.”

In the week preceding the Title 42 expiration, Bayon said the Border Patrol was holding 26,000 to 28,000 migrants nationwide.

The once-steady flow of busloads of “illegal entrant aliens” that had been sent to inland Border Patrol stations in Indio, Murrieta and Blythe in California’s Riverside County for more than two years “dried up,” about a week after Title 42 expired, and would-be illegal border crossers now appear to be using the CBP One app to schedule appointments at ports of entry such as San Ysidro and Otay Mesa, Bayon said.

From these land ports of entry, and others, migrants from more than 160 countries are moved to processing facilities run by non-government organizations, or NGOs, such as one in Otay Mesa, before being released and transported to their chosen destinations in the U.S.

Deliberate Deceit?

Chris Harris, a retired Border Patrol agent and former union leader in San Diego, told The Epoch Times the Biden administration keeps changing immigration nomenclature and confusing the public about how many people are actually entering the U.S.

Harris dismissed the DHS narrative that the number of migrants entering the U.S. “illegally” has dropped dramatically since Title 42 expired, and accused the White House of going from “misfeasance” to “malfeasance” on the border crisis, he said.

“It’s very difficult to figure out what the real numbers are. They keep changing the terms and what they mean,” he said. “And now, they’re playing games with the parole system.”

Harris also suspects DHS deliberately uses the term “appointment” to mislead the media to believe one “appointment” means only person.

He contends humanitarian parole should not be granted to entire nations such as in the case of the CHNV program.

Under the law, humanitarian parole is supposed to be granted on a case-by-case individual basis, “not whole swaths of people,” he said. “So, I don’t know how you can say all Venezuelans or Cubans or Haitians can come in for parole. It’s a misuse of the law.”

Migrants who qualify for humanitarian parole are issued temporary visas—usually for one or two years, before they are supposed to apply for renewal—but according to Harris and Bayon that’s not an accurate picture of what’s really happening.

Tijuana, Mexico seen through the US border wall near San Diego, Calif., on May 31, 2023. (John Fredricks/The Epoch Times)

Harris, who served with the Border Patrol for more than 20 years under four administrations starting with President Bill Clinton before retiring in 2018, said the Biden administration has been the least transparent.

“They are the most opaque that we’ve ever seen,” he said.

“We do have an open border,” he said. “De jure we don’t, but de facto we do.”

The administration refuses to answer questions and breaks up numbers into different categories that are difficult for the press and the public to find and understand.

“They had a very simple reporting system on numbers before, and now it is gibberish,” he said.

Former President Donald Trump’s policies were curbing illegal immigration, Harris said.

“It was working fantastically well—lowest numbers ever,” he said. “He did fantastic stuff on the border.”

Texas Suing

Meanwhile, Texas Attorney General Ken Paxton has filed a lawsuit against the Biden administration over the CBP One app, claiming it allows immigrants to unlawfully enter the U.S.

In a press release, Paxton said the app is the Biden administration’s attempt to “circumvent” the law to “streamline” the process of illegal immigration. He said federal law is clear that “those entering the country illegally should be expelled from the United States, except in rare circumstances.”

“However, the Biden border app does not and cannot verify that an illegal immigrant would qualify for an exception, which would prevent them from being deported,” Paxton said in the release.

Tyler Durden
Tue, 06/06/2023 – 14:40

via ZeroHedge News https://ift.tt/pGXBnMm Tyler Durden

Boeing Sinks After New ‘Glitch’ Delays 787 Deliveries

Boeing Sinks After New ‘Glitch’ Delays 787 Deliveries

Another day, another Boeing airplane glitch?

Bloomberg reports that Boeing will delay deliveries of its 787 Dreamliner aircraft after uncovering flawed parts during production, a setback as the planemaker works to meet soaring demand for its long-range aircraft.

The flaw may affect about 90 already-built Dreamliners that the company has not yet delivered, Boeing said on Tuesday.

It will inspect each plane for improperly sized gap-fillers within the horizontal stabilizer, a tiny wing attached to a jet’s tail.

“We are inspecting 787s in our inventory for a nonconforming condition related to a fitting on the horizontal stabilizer,” Boeing said in a statement.

“Airplanes found to have a nonconforming condition will be reworked prior to ticket and delivery.”

BA shares were down around 4% on the news…

As a reminder, Boeing is also contending with a supplier defect affecting hundreds of its 737 Max jets, and is only just recovering from tiny structural defects that halted Dreamliner shipments during 2021 and 2022.

Tyler Durden
Tue, 06/06/2023 – 14:21

via ZeroHedge News https://ift.tt/QO8A1wJ Tyler Durden