Chevron Downsizes California HQ While Upsizing Texas Presence With New 77-Acre R&D Facility

Chevron Downsizes California HQ While Upsizing Texas Presence With New 77-Acre R&D Facility

Development firm Howard Hughes Holdings Inc. announced Chevron Corp. purchased 77 acres in its new Bridgeland community in Cypress, Texas, to build a new research and development campus. The purchase comes as Chevron expands corporate offices in Texas. 

“Chevron’s acquisition marks a pivotal moment for Bridgeland as the community enters its next phase of development as a leading job center for the region,” said Jim Carman, President of the Houston Region for Howard Hughes. 

Carman continued, “One of the top-selling communities in the country, Bridgeland is poised to benefit from the influx of businesses and their employees seeking to live and work in a centralized location that offers commercial opportunities as well as single-family and multifamily housing options to meet growing demand.”

Chevron has expanded operations in Texas in recent years due to the shale boom in the Permian Basin, which now makes up 25% of the company’s total global output. Bloomberg noted the oil company recently announced plans to downsize its headquarters in the San Francisco Bay area and allowed employees to move to Houston, where 7,000 employees and contractors work out of a downtown office tower. 

“The potential research-and-development facility would provide office and laboratory research space to enable new capabilities and provide flexibility for future activities,” Chevron told Bloomberg in a statement. 

“Chevron is attracted to the opportunities Bridgeland has to offer and views this acquisition as a strong addition to our asset portfolio,” said Daniel Abate, Head of Corporate Real Estate for Chevron. 

Abate said, “We take pride in contributing to the communities where we live and work and are excited about the potential of establishing a research and development campus in Bridgeland to advance our work toward achieving a lower carbon energy future.”

The oil giant’s downsizing of California headquarters with upsizing in Texas is yet another sign the exodus out of the crime-ridden progressive state continues. 

Some of the largest companies that have abandoned high crime and high-taxed states for Texas in recent years include: 

The list of companies relocating to Texas continues to expand. And this trend might last a decade, according to hedge fund manager Kyle Bass. 

Tyler Durden
Tue, 09/05/2023 – 12:35

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K-12 Education Satisfaction In US Ties Record Low: Gallup

K-12 Education Satisfaction In US Ties Record Low: Gallup

By Gallup,

Americans’ satisfaction with the quality of K-12 education in the U.S. has fallen six percentage points in the past year to match the record-low 36% reading on this measure, which Gallup has tracked for 24 years.

In contrast, parents of K-12 students remain largely satisfied with the quality of the education their oldest child is receiving, as 76% say they are “completely” or “somewhat” satisfied, significantly higher than the 67% low on that measure from 2013.

Since 1999, when Gallup started asking these two questions every August, there has been a consistent, significant gap between parents’ satisfaction with their child’s education and Americans’ views of U.S. education in general, averaging 31 percentage points.

The latest readings, from an Aug. 1-23 poll, find that Americans’ overall satisfaction with the nation’s K-12 education quality is nine points below the 45% historical average for this metric. At the same time, parents’ satisfaction with the quality of their school-aged child’s education matches the historical average for the measure.

All told, 35% of parents of K-12 students are “completely satisfied” with their child’s education, 41% are “somewhat satisfied,” 12% are “somewhat dissatisfied” and 9% “completely dissatisfied.” Meanwhile, 8% of Americans are completely satisfied with K-12 education nationally, 28% are somewhat satisfied, 38% somewhat dissatisfied and 25% completely dissatisfied.

Parents’ more-positive views on education are reserved for their direct experience with their own children. They are only a bit more satisfied with education nationally (41%) than the public at large is (36%).

Parents of K-12 students are not just satisfied with the quality of the education their children are receiving but also with their children’s teachers. Nearly three-quarters of parents say the performance of their children’s teachers is “excellent” (36%) or “good” (37%), while 20% offer a “fair” and 7% a “poor” rating. These ratings, which are similar to the previous time the question was asked in 2018, may explain, at least in part, why parents rate their children’s education so positively.

Satisfaction With K-12 Education in Both Parties at or Near Record Lows

Lower satisfaction from Republicans and Republican-leaning independents since Joe Biden became president has driven the overall decline in ratings of the nation’s K-12 education quality. The 25% of Republicans who say they are at least somewhat satisfied with U.S. education is the lowest recorded for the group, five points below the previous low recorded last year and about half of what it was in 2019 and 2020.

While partisans on both sides of the aisle have not been overwhelmingly satisfied with education in the U.S. throughout the trend, Republicans’ latest satisfaction is 18 points below the 43% historical average for the group.

Meanwhile, the 44% of Democrats and Democratic-leaning independents who are at least somewhat satisfied with the nation’s education is five points lower than the average since 2000.

The latest divergent readings among partisans are in stark contrast to 2000, the last time overall satisfaction among U.S. adults was at today’ level. At that time, there was little difference between partisans’ satisfaction levels.

The intensity of partisans’ satisfaction also differs, with more than three times as many Republicans (38%) as Democrats (12%) in 2023 saying they are completely dissatisfied. For their part, a 43% plurality of Democrats say they are somewhat dissatisfied.

Bottom Line

Americans’ satisfaction with the quality of K-12 education in the U.S. has fallen to a record low point as a new school year begins. Both party groups are at or near record-low satisfaction levels, but Republicans are significantly less likely to be satisfied than Democrats are.

Still, parents of elementary and secondary school students remain quite satisfied with the education their child is getting, and they offer mostly positive reviews of the performance of their children’s teachers. If parental satisfaction wanes, however, parents may choose to move their child to a different school.

Tyler Durden
Tue, 09/05/2023 – 12:15

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Responding to Reader Comments on The Five Internet Rights

I want to thank Eugene again for inviting me to guest-blog last week about my new article, The Five Internet Rights. See Parts I, II, III, IV, and V. I thought I’d follow up with just one more post to respond to some of the reader comments I received on the series.

In the first place, it was certainly an interesting (and educational) experience trying to distill a 100-page, heavily footnoted, academic article into five short-form blog posts. That translation forced me to elide over many important details and caveats that were addressed in the article, some of which readers focused on. For example:

Technical Objections

On the technical side, the savvy DNS practitioner might point out that having one’s domain name suspended doesn’t amount to getting kicked off the internet (just ask gab.com and ar15.com). Often, when a registrar suspends a domain name, it gives the registrant an opportunity to find another registrar. Given that more than a thousand ICANN-accredited registrars currently offer their services to the public, a registrant faced with a suspension for purely ideological reasons can usually find a substitute. Or a truly beleaguered speaker could theoretically become her own registrar (with a fair amount of money and effort). And even if a top-level domain registry (as distinct from a registrar) permanently deprived you of your domain name (say, example.com), you could probably register another string in a different top-level domain (say, example.xyz or even example.ru).

Likewise, even if a regional internet registry (RIR) revoked your IP addresses, you might manage to procure substitute address space within another RIR’s service region. I address these nuances in a section of the article that distinguishes between “strict” and “fuzzy” classes of intermediaries and notes the hierarchy of control from registrars to registries to ICANN. But obviously, that would have been too in the weeds for a blog series (as would have been any description of the seven-layer OSI network stack).

Another important clarification is that even if a person lost her domain name, IP address, and commercial internet connection, those actions would only kick her website off the internet; they wouldn’t necessarily kick her off the internet. She could probably continue to leverage the internet to express her viewpoints using non-web technologies, such as email, FTP, peer-to-peer, or video conferencing. I acknowledge as much in the article. But I also argue that websites enjoy a special status when it comes to online expression. Websites alone combine control, social valence, accessibility, discoverability, authority, and permanency. Not so with spoof-able emails, undiscoverable file objects, or ephemeral Zoom-casts. A viewpoint that is denied a home on every website might not be banished from the internet entirely, but it would be effectively banished from the public internet.

Messy Anecdotes

Some readers focused on certain anecdotes I used to illustrate the evolution of content moderation as it has progressed down the internet stack. Did GoDaddy suspend ar15.com simply because GoDaddy disliked lawfully expressed viewpoints on the site, or did GoDaddy find instances of actual (unlawful) incitement to violence? Did LACNIC revoke IP addresses used by Parler because it wanted to take the unpopular social media platform offline, or was it simply enforcing neutral policies?

As I address in the article, instances of deplatforming will often be messy or ambiguous. Take LACNIC, for example, which supposedly revoked IP addresses belonging to DDoS-Guard (Parler’s cloud hosting provider) because DDoS-Guard had used a shell company in Belize to obtain the addresses. Yet corporations often create local subsidiaries (with no employees) in foreign jurisdictions solely to obtain licenses or other resources granted only to local entities. And as any telecom lawyer who has incorporated local subsidiaries in different countries to obtain telecom licenses for a global OTT service will tell you, that is a perfectly acceptable practice. Moreover, the provision at issue, § 1.14 of the LACNIC Policy Manual, requires only that address holders be “legally constituted within [the LACNIC] service region”; it contains no requirements as to a minimum of employees.

Perhaps DDoS-Guard lost its IP addresses because it did not use them primarily to serve networks in Latin America, which is also contemplated by LACNIC policy. If DDoS-Guard had violated that principle (and I’ve seen no reporting stating that it had), then that might indeed have been a viewpoint-neutral reason for the revocation. But the fact that many address holders are likely in a similar position highlights another problem: the opportunity for selective enforcement. If there is any desire to see an unpopular speaker deplatformed, it will often be possible to find some technical violation. Many intermediaries prohibit “objectionable” content (which is usually not defined), GoDaddy may cancel a domain name if it receives an “excessive amount of complaints” from the public, and RIPE, another RIR, reserves the right to revoke IP addresses from any holder that merely “cause[s] damage” to its name, which theoretically could be interpreted to encompass situations where enough people criticize RIPE for enabling an unpopular site to stay online. As one commentator noted, in 2021, GoFundMe demonetized the Canadian trucker protesters based on only three instances of minor illegality while continuing to fund protests in Portland that “set fire to police stations, vandalized city hall, wielded weapons and injured police officers.”

And just as concerning, I would argue, was Ukraine’s attempt to revoke Russia’s IP addresses and top-level domains. That attempt perhaps serves as a cleaner example of the growing interest in using internet architecture as a tactical weapon (not to take anything away from Ukraine’s cause, which I otherwise support).

In any event, and circling back to my opening remarks, it’s important to understand that The Five Internet Rights is ultimately a theoretical piece. Its point is not to demonize any particular intermediaries or to claim to know their motives. And its thesis doesn’t depend on any particular instances of deplatforming or my interpretation of them. Rather, it offers a theory of interventionism—an answer to the thorny question of when, if ever, the state should intervene in private content moderation.

Doesn’t your thesis require you to support net neutrality?

For the most part, yes. My thesis is that an intermediary’s “content moderation” practices—its decision to revoke a resource used by a third party to publish lawful content on the internet—should be subject to regulation (in the U.S.) if (and perhaps only if) the revocation of that resource presents the risk of viewpoint foreclosure. That is, if (1) that resource class is essential to operating a public website and (2) a person deprived of that resource cannot realistically create a substitute. By my reckoning, three resource classes satisfy this test: networks, IP addresses, and domain names. The “five internet rights” call for non-discrimination protections across these three classes and only these three classes.

That thesis is bound to upset some folks on both the left and the right (no one loves a moderate). Conservatives might complain that it doesn’t touch social media (or any other websites), search engines, app stores, or even cloud computing (inclusive of content delivery networks and DDoS mitigation services). Google would remain free to de-index 4chan, Apple could keep Parler out of the App Store, and Amazon could boot Parler off AWS. After all, none of those actions would take the targeted site permanently offline. By contrast, progressives might oppose any policy that would keep the worst kinds of content online, even if that online presence is limited to backwater websites that few visit or link to.

Net neutrality (before it was repealed) guaranteed only a right to “accessibility”—the right not to have one’s users blocked from accessing her lawful website by their ISPs (their last-mile networks). But it didn’t protect a website operator’s ability to connect her website to the internet in the first place, to maintain a static IP address and a resolvable domain name, or to have her website’s packets faithfully routed through intermediate backbone networks. For those, you need additional rights of connectivity, addressability, nameability, and routability.

Some have told me that they think of the five internet rights as a kind of expanded net neutrality (perhaps it might be called “internet neutrality” or “infrastructure neutrality”). That’s true in a sense, but there’s an important distinction. From the beginning, the concerns that motivated the political left to pursue net neutrality were economic in nature. The left wanted to prevent ISPs from leveraging their networks and their access to subscribers (in telecom parlance, their “terminating access monopolies”) to extract rents from websites in the form of tolls, paid prioritization, or zero-rating or to advantage their OTT services over those of competitors. By contrast, the concerns that have motivated the political right to pass laws like those in Texas and Florida in recent years have been moral in nature (in the deontological sense and not to make any value judgments about the moral rightness of those efforts). The right has wanted to prevent websites like social media platforms from discriminating against users for ideological reasons. Both are non-discrimination enterprises, but their theoretical foundations differ.

What the right and the left should appreciate is that their interests now align. The FCC’s 2015 Open Internet Order prevented ISPs from blocking their subscribers’ access to lawful websites and applications. That broad prohibition wasn’t conditioned on whether an ISP might block a website for economic reasons (to charge a toll or disadvantage a competitor) or for moral reasons (to counter the viewpoints expressed on the site). If the right is concerned about private “censorship” on the internet, it should consider giving the left the economic neutrality it has long desired in exchange for the ideological neutrality the right now craves. Given that the ISP ecosystem already abides by net neutrality principles (whether because of state net neutrality laws, the EU Open Internet Regulation, or market forces), that seems like a small concession. Ideally, the left and the right could agree on a broad neutrality framework that encompasses all aspects of the network (beyond net neutrality’s focus on last-mile, mass market access), as well as DNS and the IP address system, and that protects against both economic and ideological discrimination. (Precisely what the “five internet rights” are designed to do.)

At least, that seems like a sensible compromise to me.

The post Responding to Reader Comments on <i>The Five Internet Rights</i> appeared first on Reason.com.

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Meeting Of ‘Pariahs’: Kim Jong Un To Visit Putin For Arms Deal Talks

Meeting Of ‘Pariahs’: Kim Jong Un To Visit Putin For Arms Deal Talks

Moscow is shrugging of recent accusations from the Biden administration that it is getting weapons from North Korea and its international ‘pariah’ leader Kim Jong Un. Instead, both countries are apparently set to forge greater defense ties, as the US government is now alleging Kim might soon travel to Russia to meet President Vladimir Putin for a potential major weapons deal.

The US National Security Council issued a statement Monday warning that such arms negotiations between Russia and North Korea are “actively advancing” – so clearly they are thumbing their noses at Washington in the face of threats.

This comes on the heels of Russian Defense Minister Sergei Shoigu’s July trip to Pyongyang, where he and his delegation met with his North Korean counterpart and top officials, and were on hand to observe 70th anniversary celebrations of the end of the Korean War, referred to in the north as “Victory Day”.

“We have information that Kim Jong Un expects these discussions to continue, to include leader-level diplomatic engagement in Russia,” NSC spokesperson, Adrienne Watson, said in a fresh statement. There was no indication of timeline or location for the meeting from the NSC comments.

During Shoigu’s July visit, North Korea’s Defense Minister, Kang Sun Nam, reportedly said his government fully supports Russia’s “battle for justice” and protection of its sovereignty, but there was no indication that Kim himself invoked the Ukraine conflict directly. Shoigu had reportedly at the time praised the north’s army as among the world’s “strongest”.

Both countries remain in US crosshairs and under far-reaching sanctions. Shoigu’s visit had indeed likely kick-started serious dialogue, given it marked the first visit by a Russian defense ministry to North Korea since the 1991 collapse of the Soviet Union. So the next step may very well be an ultra-provocative Kim trip to Moscow.

Last week top White House NSC official John Kirby predicted, “Following these negotiations, high-level discussions may continue in coming months.” That’s also when the NSC first alleged that the two sides are negotiating over “significant quantities and multiple types” of weapons to use in Ukraine.

The Kremlin has yet to confirm any potential talks or deal for weapons…

Washington has over the course of the Ukraine conflict at various points accused North Korea of supplying the Russian military with additional artillery ammo. US intelligence has in the recent past alleged that train shipments between the two countries included covert ammo supplies, but something which has not been proven.

The two countries actually share a small border. More recently, there have been accusations that Wagner Group, which is now on the outs with Moscow in the wake of the mutiny in June and after Yevgeny Prigozhin’s death, purchased large quantities of arms and equipment from the Kim Jong-Un government.

Tyler Durden
Tue, 09/05/2023 – 11:55

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‘Mitch Did Not Glitch’ Say McConnell’s Doctors

‘Mitch Did Not Glitch’ Say McConnell’s Doctors

Mitch McConnell’s doctors insist he’s just fine, and didn’t have some sort of medical episode when he completely froze up for the second time in four weeks while giving a press conference.

According to McConnell’s doctor, Brian P. Monahan, McConnell underwent “brain MRI imaging, EEG study and consultations with several neurologists for a comprehensive neurology assessment,” he concluded that “There is no evidence that you have a seizure disorder or that you experienced a stroke, TIA or movement disorder such as Parkinson’s disease.

CNN reports that four neurologists signed off on McConnell after his second freezing episode.

So, McConnell was just being unprofessional and is otherwise on his A-game, and this isn’t a desperate attempt to cling to the ring of power like Gollum?

Right…

And four weeks prior:

 

Tyler Durden
Tue, 09/05/2023 – 11:33

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SoftBank’s Arm Targets $4.87 Billion In Downsized IPO Offering

SoftBank’s Arm Targets $4.87 Billion In Downsized IPO Offering

SoftBank Group’s semiconductor unit, Arm Holdings, updated its initial public offering filing on Tuesday morning with the Securities and Exchange Commission that revealed it aims to raise up to $4.87 billion, a smaller amount than what was previously announced in August. 

The amended F-1 filing with the SEC said UK-based chip designer Arm planned to offer 95.5 million American depositary shares between $47 and $51 each and apply to list its ADSs on the Nasdaq Global Select Market. Bloomberg said the revised deal would value Arm at the top of about $54.5 billion. 

Ten of Arm’s customers — including Advanced Micro Devices, Apple, Nvidia, Alphabet’s Google, Intel, MediaTek, TSMC, Synopsys, and Cadence Design Systems — have all “indicated an interest in purchasing up to an aggregate of $735 million of the ADSs offered in this offering at the initial public offering price and on the same terms and conditions as the other purchasers in this offering,” according to the filing. 

Even at $4.87 billion, Arm’s IPO could be the largest of the year, expected to surpass the $4.37 billion listing by Johnson & Johnson consumer health spinoff Kenvue Inc. 

“Arm’s listing could also break ground for IPOs by dozens of tech startups and other companies whose plans to go public in the US have been stuck in the mud during the deepest, longest listing trough since the financial crisis in 2009,” Bloomberg said. 

The amended filing also noted that SoftBank Group Corp. will own about 90% of Arm’s shares after public offering. In 2016, SoftBank’s Vision Fund purchased Arm for around $32 billion. 

Financial Times said Arm’s roadshow will begin in New York on Tuesday. Depending on how well received the roadshow goes, the company which is a crucial part of the semiconductor supply chain, especially in chip designing for smartphones — could raise even more money from investors, though some tailwinds include the push into semiconductor companies due to artificial intelligence, while headwinds with highest interest rates in two decades dent optimism for speculation. 

Tyler Durden
Tue, 09/05/2023 – 11:15

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Teachers’ Union To Teachers: Destroy Evidence Of Student Gender-Identity Survey

Teachers’ Union To Teachers: Destroy Evidence Of Student Gender-Identity Survey

Via The College Fix,

A Colorado affiliate of the nation’s largest teachers union, the National Education Association, told its teachers to destroy any evidence of having given students a gender identity survey, according to a recent report.

CBS Colorado notes that while the JeffCo Public Schools district says it is “unclear” whether surveys about “preferred pronouns” are in violation of state law, it advised teachers against using them as lawsuits are ongoing.

Federal and state law forbid mandatory surveys that ask about kids’ “protected information,” and voluntary surveys must include a parent opt-out.

But an email from the Jefferson County Education Association told teachers that if they give such surveys, to make sure to they are pencil and paper … because “any digital records are more permanent and may be requested under federal law.”

The email also “encouraged” teachers to “make […] notations about students and not hold on to the documents.”

The union claims the district has “given contradictory directions” about such surveys; however, information sent by the district to teachers clearly states “please no preferred pronoun/gender identity questionnaire. Do not promise to keep information from parents.”

JeffCo parents claim that since the union’s guidance, “dozens” of district teachers have made use of gender identity surveys. Parents say they’re not opposed to students using preferred pronouns and respect transgender students’ right not to be “outed,” just to the union telling teachers “to break the law and hide the evidence.”

From the story:

“The leadership actually provided an avenue to get around the law and basically saying it was OK,” says school board member Susan Miller.

She says the union put teachers’ jobs at risk – those that violate the law can lose their licensure.

[Parent Denice] Crawford says it also put teachers relationship with parents at risk.

“I don’t feel I can trust the teachers,” she said.

She says she reported her son’s survey to his principal but hasn’t heard back. She says she’s not anti-LGBTQ. Her nephew, she says is transgender and her daughter is gay.

“This is not political. It’s just they’re breaking the law,” she said.

When asked what action should take place she responded, “the same thing that would happen to anybody breaking the law accountability and correction.”

Miller agrees, “I want parents to know the district takes this very seriously.”

JCEA President Brooke Williams (pictured) avoided the issue of telling teachers to trash evidence of gender-related surveys, and instead reiterated district policy and complained about the “politicization” of the matter.

“By allowing students an optional avenue to share their preferred pronouns while maintaining student privacy, we can better ensure that students feel safe, respected, and validated,” Williams said in a statement.

“Transgender and gender nonconforming students have the right to discuss and express their gender identity and expression openly and to decide when, with whom, and how much to share private information.”

Tyler Durden
Tue, 09/05/2023 – 10:55

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“He ain’t never done nothin’ but get shot in Dallas. . .”

When the first shot rang out at Dealey Plaza on November 22, 1963, most bystanders didn’t even realize that it was the sound of gunfire.

But Texas Governor John Connally was an avid hunter. He recognized the sound, sensed danger, and turned behind him to check if President Kennedy was OK.

Moments later, the second shot was fired, striking Connolly in his back. And as he looked down and saw his blood-soaked shirt, he shouted, “My God, they’re going to kill us all.”

President Kennedy, of course, did not survive. But Connally eventually made a full recovery. And, having achieved near mythical status in the State of Texas, he was re-elected twice more as governor.

Then, in 1971, President Richard Nixon asked Connally to be Treasury Secretary. Connally accepted the post despite having almost zero experience in finance or economics. And when questioned later by reporters about his obvious lack of credentials, he famously quipped, “I can add.”

(Connally later declared personal bankruptcy.)

The US economy was in bad shape at the time; Nixon’s predecessor, Lyndon Johnson, had spent aggressively on the Vietnam War while simultaneously spending billions of dollars– a prodigious sum in the 1960s– on education, anti-poverty, and welfare programs.

And inflation rose to around 6% thanks in large part to this excessive government spending.

Developed countries around the world began to rapidly lose confidence in the US dollar and the American government’s ability to manage its finances. And the Treasury Department started receiving demands from foreign governments who wanted to redeem their US dollars for gold.

Nixon was in a bind about how to fix the economic mess. And it was Connally– full of Texas swagger (and little else)– who convinced the President to formally end the dollar’s convertibility into gold.

Nixon made the announcement on Sunday night, August 15, 1971, unilaterally ending the “Bretton Woods” international monetary system that had been in place since 1944.

The announcement became known as the “Nixon Shock”. And “shock” is probably the right word. Foreign governments were in a panic; their entire financial system had been snatched away, overnight, without any warning. And politicians don’t tend to handle uncertainty very well.

This is where Connally stepped in yet again to smash foreign governments in the face with their new reality. “The dollar is our currency,” he told his fellow finance ministers in late 1971, “but it’s your problem.”

Connally was essentially pointing out that the rest of the world didn’t have an alternative to the US dollar. Nearly every nation on earth conducted international trade in US dollars. And because they had no other alternative, the US government could do whatever it wanted… including rack up huge deficits and painful inflation.

And that’s what happened. With no reason to restrain itself or have any financial modesty whatsoever, US government spending soared. Deficits piled up year after year, leading to a particularly nasty episode of stagflation in the 1970s.

Connally was a major architect of this mess, leading one of his critics to later say, “He ain’t never done nothin’ but get shot in Dallas. . .”

In fairness to Connally, that judgment isn’t entirely true. One of his lasting legacies was scaring the world into setting up an alternative to the US dollar.

Europeans in particular were freaked out by the Nixon Shock… so much, in fact, that western European nations eventually banded together to form their own currency as an alternative to the US dollar; today the euro has about a 20% share of global financial reserves.

But with a 60% market share, the US dollar is still dominant. For now.

More than fifty years after the Nixon Shock, the US government still has no financial restraint. Annual deficits easily top $2 trillion, nearly 10% of GDP. America’s fiscal situation is so bad that, within the next decade, 100% of tax revenue may be consumed just to pay for mandatory entitlements (like Social Security) and interest on the debt.

If that weren’t bad enough, the Treasury Department has also made a habit of weaponizing the US dollar, i.e. threatening individuals, businesses, and foreign governments to bend it its will or else be cut off from the global financial system.

It’s no wonder that there’s been so much in the news lately about alternatives to the US dollar. Late last year, for example, Saudi Arabian officials said that they were “open” to selling oil in a currency other than US dollars (i.e. Chinese yuan).

And just a few weeks ago, members of the “BRICS” alliance expanded their membership in an effort to directly challenge the dollar’s dominance.

Now, I’ve been writing about the eventual decline of the US dollar for several years. More than a decade ago, for example, I argued that the market would seek an alternative to the US dollar “gradually, rather than suddenly”.

That was considered a highly controversial assertion back then. Today, the dollar’s decline is a mainstream view.

But even though I held this view way before it became popular, I have to be contrarian now and say the burgeoning “BRICS” agreement is NOT the end of the dollar.

The BRICS members include Argentina– a country that is perennially in a state of default and hyperinflation; Ethiopia, which has a GDP per capita of just $925; and South Africa, a borderline failed state.

China is obviously the anchor of the BRICS alliance. But at the same time, no one really trusts the Chinese government. And America, for all of its problems, is still viewed as a more reliable steward of the global reserve currency than the CCP… whose threats against Taiwan are not inspiring confidence.

What is clear is that the international financial order is going to change. The United States can no longer impose the “Connally Doctrine,” i.e. the dollar is our currency but your problem.

This is hardly controversial anymore. The US cannot have a gargantuan debt, uncontrolled spending, incompetent leaders, and a weakened military, and yet still expect to be the world’s dominant reserve currency.

I think a far more likely scenario is that there will be an event… probably some time between 2028 and 2035, that triggers a formal agreement to reset the global monetary system.

It could be Social Security running out of money (currently projected in 2033), which requires Treasury to borrow $10+ trillion to bail it out. Or perhaps another debt ceiling showdown that results in a default on the national debt. Or it could be another major banking crisis. Or even a major global war.

Whatever the cause, I suspect this event will compel leading nations to call a formal conference, similar to the Bretton Woods conference in 1944 that established the first modern financial order.

The US will be much weaker at that point. But it will still have a seat at the negotiating table.

Today, BRICS is a very loose affiliation of countries who don’t trust each other. This isn’t going to replace the dollar.

My view is that whatever agreement ultimately knocks King Dollar from its throne will have the US Treasury Secretary’s signature on it.

But regardless of how it plays out– and what ultimately triggers it– the dollar’s decline remains an extremely likely outcome.

Technically the dollar’s problems are still fixable. The national debt is fixable. All problems are fixable.

However America’s pitiful leadership seems to lack both the ability and desire to enact real solutions. And as long as this trend holds, it makes sense to plan on the dollar’s eventual decline as the world’s primary reserve currency.

And this means real assets… and in particular exposure to gold.

Source

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Harriet McConnell Retford on Arizona v. Navajo Nation

As I noted in an earlier post, I’m delighted to report that we have two items on this June 2023 Supreme Court case today, both from people who know a great deal about Indian law; unfortunately, I know very little about the subject, but I know it’s important, and I’m glad to have a chance to pass along these items. This is from Harriet McConnell Retford, who is a member of the American Indian Law group and Greenberg Traurig LLP and the co-author of an amicus brief in Navajo Nation on behalf of the Coalition of Large Tribes (the views expressed are her own and don’t reflect those of Greenberg Traurig or the Coalition):

The Supreme Court’s decision in Arizona v. Navajo Nation, No. 21-1484 comes at the messy intersection of two of the least functional doctrines in federal Indian law: reserved water rights under Winters v. United States (1908) and Indian trust doctrine under United States v. Mitchell (1980).

It also showcases the now-familiar contrast between the Court’s two different approaches to conservative jurisprudence: the strict formalism of Justice Gorsuch—a stern insistence that the United States live up to the letter of its legal obligations come hell or high water—as opposed to the status-quo, stare decisis driven conservative jurisprudence of Justice Kavanagh and Chief Justice Roberts.

Justice Gorsuch would insist that if the United States serves as “trustee” for the lands and waters of Indian tribes then it has a duty to account for those waters and to make absolutely certain that it does not take any action that would divert those waters to other public or private purposes. The majority instead follows a long line of precedents that allow the United States to assert the privileges of trustee over Indian lands without assuming the corresponding obligations.

To be fair, however, there are significant problems with Arizona v. Navajo Nation as a vehicle for addressing these issues, especially the lack of clarity regarding the remedy being sought, so hopefully further opportunities will come to revisit these doctrines in a cleaner case.

Tribes have water rights in theory, but legal obstacles make the use of these rights prohibitively expensive.

When the United States set aside lands to be reserved as homelands for Indian tribes, it also reserved the water needed to make those lands livable and productive. Winters v. United States (1908). There is no dispute that Indian reservations have a legal right to associated water rights sufficient to build a permanent homeland for their people, and that these water rights apply not only to reservations created by treaty but also to the numerous reservations created by act of Congress or executive order.

The basic problem with reserved water rights is that they are not worth the paper that they are printed on, or rather not printed on. Indian water rights come in three types: unquantified, quantified, and “wet water”—actual water that can be physically delivered. Unquantified water rights are hypothetical water rights to unspecified amount of water and cannot be used until the tribe obtains a legal judgment stating that it has a legal right to specified amount of water from a particular water system.

The process for quantifying water rights is known as a general stream adjudication in which all the claimants to a particular watercourse participate and the court issues a decision determining the amount of water that everyone is entitled to and the priority of their claims in the event that there is not enough water for all rights-holders. Even for minor river systems these cases often drag on for decades, with several stages of multi-week trials and numerous expert witnesses, usually culminating in a settlement that must be approved by act of Congress. Every step of the process is massively contentious, and the legal standard is both vague and appallingly fact-specific.

This complexity is why most tribes have failed to quantify their water rights even a hundred years after Winters was decided. And the mainstream of the Colorado is definitely not a minor river system.

Even if the rights were quantified, they would be largely useless without billions of dollars in infrastructure to treat and transport the water to the places where it is needed. Not only would these pipes and pumps need to be built over some of the rugged terrain in the United States, but the regulatory compliance requirements and environmental litigation would be prohibitively expensive. The Environmental Impact Statement alone would be thousands of pages long, and you could easily end up putting a dozen consultant and lawyer kids through college for each Indian household that finally gets running water.

Water rights in the western United States are usufructuary—use it or lose it—rights and can only be used, not sold, leased, or deliberately left in the river. Any water that is not physically removed by a senior appropriator is available for appropriation by another user—free of charge. There is no market price for water rights, which leads to the predictable shortages, rationing, and misallocation. This system is enormously economically inefficient and it works a great injustice to Indian tribes that do not have the funds to build giant infrastructure projects and are forced to donate their water to California farmers instead.

The entire system is unworkable and needs to change so that the tribes can make use of the valuable water that is their rightful property. My own policy preference would be some combination of marketability and an effort to develop a legal standard for calculating the acre-feet available to a tribe that is more mathematical and formulistic than the current approach, so that simple cases can disposed of quickly and cheaply. This would allow the tribes to lease their water to the best available use and then use that money to pay for improvements to their water delivery capabilities or for other useful projects.

The Navajo Nation, in its suit, had a different theory for how to address this problem. It believed—not without reason—that the United States as trustee over Indian water rights has an obligation to account for them and, at the very least, prevent them from being diverted to other uses.

The United States needs to honor the basic fiduciary duties of a trustee or get out of the Indian trust business—preferably the latter.

These reserved water rights are property of the United States, held in trust for the Tribes. But the United States is a shockingly incompetent trustee and exerts itself to manage these assets only in a haphazard fashion and in response to political pressure. For example, during the original adjudications of the upper basin of the Colorado, the United States asserted water rights on behalf of six tribes but not only refused to include the Navajo Nation but blocked its efforts to intervene on its own behalf.

The mismanagement by the United States might be tolerable if it did nothing at all, thus making it a “trustee” in name only as the majority held in Arizona v. Navajo Nation, but it is in fact active and interfering. Most water projects in the western United States were built with federal funds, and water remains a major target of pork barrel spending. The BIA is routinely expected to sign off on all major tribal land use decisions, a requirement that predictably adds six months of delay and significant regulatory compliance costs for no discernable benefit. Modern tribes have long since given up relying on the BIA and learned to hire their own legal counsel.

The majority is disingenuous about this point, claiming that the Navajo Nation is demanding that “the United States must do more than simply not interfere with the reserved water rights.” Slip. op. at 6 (emphasis in original). The United States interferes heavily and constantly; half the expense of these water projects is the environmental impact statement which is a federal mandate. And the tribes did not invent the prior appropriation doctrine, which favors parties that build large water diversions over people who were simply living and using the waters in the region. Nor did they erect the numerous legal obstacles that make it difficult for tribes to assert their claims.

Under binding Supreme Court precedent, it is perfectly permissible for the United States to take on the powers of the trustee without the associated duties and even to use these powers to serve interests other than those of the beneficial owner of the trust property. “Congress may style its relations with the Indians a trust without assuming all the fiduciary duties of a private trustee, creating a trust relationship that is limited or bare compared to a trust relationship between private parties at common law,” Navajo Nation, quoting U.S. v. Jicarilla Apache Nation (2011). It may even “structure[] the trust relationship to pursue its own policy goals”—goals which conflict with the tribes whose land is being managed.

The Court has shown a willingness to take the “bare trust” concept all the way to its logical conclusion. For example, in U.S. v. Navajo Nation (2003) the BIA approved a below-market royalty rate for Indian coal, over the objections of the Navajo Nation which was actively bargaining on its own behalf. The Court held that this was not a breach of trust; as long as the royalty rate was above the very-low statutory minimum the BIA owed no further legal duties to the Navajo Nation. Even more standard BIA decisions routinely take into account interests besides those of the beneficial owners of the property, mostly environmentalists and other NIMBYs groups.

Although the parties and amicus briefs (including ours) made an effort to distinguish this line of cases, they are an embarrassment and should be overruled. As Justice Gorsuch argued in dissent, when the United States is acting as a trustee, managing tribal assets on behalf of the tribes, it should be held to the same legal standard as a private trustee: “something stricter than the morals of the market place[,] [n]ot honesty alone, but the punctilio of an honor the most sensitive.” Meinhard v. Salmon (N.Y. 1928). The “morals of the marketplace” would actually be a substantial upgrade, which is why tribes always secure their own legal counsel and economic valuations when negotiating important contracts.

The United States should not be allowed to exercise the powers of a trustee without also shouldering the most basic and minimal duties that come with those powers: to identify the property held in trust, segregate that property from the trustee’s own property to the extent possible, and to refrain from conflicts of interest and self-dealing with regard to that property. Restatement (Third) of Trusts § 84 cmt. d (2012). The United States cannot simultaneously act as a trustee, a regulator, and the builder and operator of large dams and other structures that divert water away from tribal owners to more politically powerful interests.

In a broader sense, Arizona v Navajo Nation makes clear the need for a structural reform: the federal government’s Indian trust functions need to be segregated into an independent agency that answers only to its fiduciaries, with a clear understanding that no other groups have standing in court to challenge decisions made on behalf of a tribe.

But if the United States is permitted to administer a “bare trust,” then the tribes should be permitted to politely decline any unwanted trust services and BIA processes and to instead manage their own affairs. Under current law, the tribes suffer all the interference of a meddlesome trustee without any legal guarantee that the trustee uses those powers in their interests.

The post Harriet McConnell Retford on <i>Arizona v. Navajo Nation</i> appeared first on Reason.com.

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‘Free Speech Absolutist’ Elon Musk Threatens Anti-Defamation League With Defamation Lawsuit


Elon Musk and X | Jaap Arriens/ZUMAPRESS/Newscom

‘Free speech absolutist’ Elon Musk is threatening to sue the Anti-Defamation League (ADL). The group has allegedly tried to “kill” the social media platform X, formerly known as Twitter, with false accusations of antisemitism and advertiser boycotts, according to Musk. In a series of posts, the billionaire said that the ADL’s pressure campaign on advertisers to leave X over its content moderation policies was primarily responsible for a 60 percent drop in the site’s U.S. ad revenue.

“If this continues, we will have no choice but to file a defamation suit against, ironically, the ‘Anti-Defamation’ League,” said Musk. “If they lose the defamation suit, we will insist that they drop [sic] the ‘anti’ part of their name.”

In a subsequent post, Musk suggested that the ADL was responsible for destroying $22 billion of Twitter’s value.

The dispute between the ADL and X is not new.

Ever since Musk took over the platform late last year, the civil rights organization has accused the company of allowing hateful and antisemitic speech to proliferate through overly lax content moderation policies and practices.

The ADL was one of the groups reporting a dramatic rise in the use of racist and homophobic slurs on Twitter after Musk’s acquisition. It also complained that the company was now less responsive to its requests to remove content.

Back in December 2022, Reason‘s Jacob Sullum argued that the rise in hate speech reported by the ADL and others was being exaggerated. The few thousand additional tweets containing racist and antisemitic slurs were still a tiny fraction of the content on the site.

Nevertheless, the ADL has continued to pressure X to be more aggressive in taking down what it deems hateful content. In a report published last month, the ADL even accused the social media site of running a “hate machine” for suggesting people follow accounts that have tweeted antisemitic content and memes.

The ADL, alongside other civil rights groups, had participated in other pressure campaigns aimed at getting advertisers to leave Facebook over its (supposedly) lax content moderation. In recent years, critics of the ADL also have accused it of being overly partisan and using dodgy methodology to inflate the number of antisemitic incidents it tracks.

In July, X sued the nonprofit Center for Countering Digital Hate over what it claims were baseless accusations of failing to police hate speech.

Musk surely has some cause to dispute a lot of the claims the ADL is making about X. His company is within its rights to decline the group’s content moderation demands. Nevertheless, the ADL is also well within its rights to argue Musk is running a “hate machine” and lobbying advertisers to take their business elsewhere. By threatening legal action against the group, Musk is ceding whatever moral high ground he may have had as a defender of free speech.

Instead, he’s suggesting he might use the court system to bully the group into silencing their criticism of his company. That’s hardly the action of a “free speech absolutist.”


FREE MARKETS

The budget deficit is set to double this year, The Washington Post reports:

After the government’s record spending in 2020 and 2021 to combat the impact of covid-19, the deficit dropped by the greatest amount ever in 2022, falling from close to $3 trillion to roughly $1 trillion. But rather than continue to fall to its pre-pandemic levels, the deficit then shot upward. Budget experts now project that it will probably rise to about $2 trillion for the fiscal year that ends Sept. 30, according to the Committee for a Responsible Federal Budget, a nonpartisan group that advocates for lower deficits.

This explosion in debt is coming despite President Joe Biden’s repeated claims that he’s actually cutting the federal government’s fiscal deficit.


FREE MINDS

Americans are increasingly saying “skool suks.” Recent public opinion polls show that young Americans’ attitudes toward college are turning increasingly negative, according to The New York Times:

The percentage of young adults who said that a college degree is very important fell to 41 percent from 74 percent. Only about a third of Americans now say they have a lot of confidence in higher education. Among young Americans in Generation Z, 45 percent say that a high school diploma is all you need today to “ensure financial security.” And in contrast to the college-focused parents of a decade ago, now almost half of American parents say they’d prefer that their children not enroll in a four-year college.

Perhaps colleges being some of the last institutions to cling to insane COVID restrictions is playing a role:


QUICK LINKS

  • According to technology journalist Tim Lee’s parsing of data from the driverless taxi services of Waymo and Cruise, driverless cars might already be safer than human-operated motor vehicles.
  • National Review on how the New Deal harmed black Americans.
  • France is planning on banning all disposable vapes as part of an “anti-smoking” plan. Good luck with that!
  • Former Democratic governor of New Mexico and 2008 presidential candidate Bill Richardson has died.
  • Excavations at some Canadian residential schools are failing to turn up human remains in what were reported to be mass graves.
  • Attendees are finally leaving Burning Man after a sudden storm made travel out of the desert festival temporarily impossible.

The post 'Free Speech Absolutist' Elon Musk Threatens Anti-Defamation League With Defamation Lawsuit appeared first on Reason.com.

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