Larry Kudlow, Trump’s New Economic Adviser, Is a Longtime Advocate for Low Taxes and Free Trade: New at Reason

Veronique de Rugy has hope for Trump’s newest economics adviser:

On Thursday, economist and CNBC contributor Larry Kudlow was named the new director of the National Economic Council at the White House. Kudlow is a longtime advocate for low taxes, free trade, and looser immigration restrictions. Although he has softened slightly on the last two, I am hopeful he will use his new perch to continue to advocate forcefully for all of them.

To many in Washington and New York, Kudlow is known for being one of first supply-siders. He was a supply-sider when supply-side wasn’t even a thing. And he has remained loyal to that way of thinking. In other words, he likes his and everyone else’s taxes low—especially as they apply to capital.

Needless to say, he was happy with the tax reform plan passed and signed into law last December, especially the reduction of the corporate tax rate from 35 to 21 percent. Being more politically savvy than I, he probably had more tolerance than I for the whole “middle class tax relief” part of the plan. In my humble opinion, if Congress and the president won’t cut spending, they shouldn’t implement tax cuts with no apparent economic growth payoff.

When you are engaged in a tax policy battle, having Larry Kudlow on your side is an asset.

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In “Cyber-Related Statement”, US Sanctions “Putin’s Chef”, Russian Troll Farm

The US Treasury’s Office of Foreign Assets Control has posted a new and improved list of cyber-related sanctions targeting several Russian individuals and entities.

Among those sanctioned are Yevgeniy Prigozhin, a Russian caterer known as “Putin’s Chef.”

As Bloomberg reports, The U.S. issued financial sanctions against two major Russian intelligence agencies along with a St. Petersburg-based “troll farm” and other Russian citizens and businesses indicted by Special Counsel Robert Mueller on charges of meddling with the 2016 U.S. presidential election.

The penalties listed Thursday on the Treasury Department’s website follow the February indictment and more than a year of criticism from Democrats and some Republican lawmakers that Trump has been too slow to act against Russia for intruding in the election.

The sanctions cover the Internet Research Agency and all other businesses and entities included in Mueller’s Feb. 16 indictment, which alleged a vast scheme to interfere with the campaign through social media and help President Donald Trump win.

Treasury also points to 2017 ‘NotPetya’ attack, which the U.S. says was “the most destructive and costly cyber-attack in history.”

NotPetya resulted in billions of dollars in damage across Europe, Asia and U.S., disrupted global shipping, trade and medicine production, and rendered several U.S. hospitals unable to create electronic records for more than a week.

*  *  *

Specially Designated Nationals List Update

The following individuals have been added to OFAC’s SDN List:

AFANASYEV, Sergei (a.k.a. AFANASYEV, Sergey), Russia; DOB 16 May 1963; Gender Male (individual) [CAATSA – RUSSIA] (Linked To: MAIN INTELLIGENCE DIRECTORATE).

ASLANOV, Dzheykhun Nasimi Ogly (a.k.a. ASLANOV, Jay; a.k.a. ASLANOV, Jayhoon), Russia; DOB 01 Jan 1990; POB Azerbaijan; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

BOGACHEVA, Anna Vladislavovna, Russia; DOB 13 Mar 1988; Gender Female (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

BOVDA, Maria Anatolyevna (a.k.a. BELYAEVA, Maria Anatolyevna), Russia; DOB 21 Feb 1986; Gender Female (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

BOVDA, Robert Sergeyevich, Russia; DOB 27 Aug 1989; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

BURCHIK, Mikhail Leonidovich (a.k.a. ABRAMOV, Mikhail), Russia; DOB 07 Jun 1986; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

BYSTROV, Mikhail Ivanovich, Russia; DOB 21 Dec 1958; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

KAVERZINA, Irina Viktorovna, Russia; DOB 18 Jul 1986; Gender Female (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

KRYLOVA, Aleksandra Yuryevna, Russia; DOB 01 Jul 1986; Gender Female (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

MOLCHANOV, Grigoriy Viktorovich; DOB 01 Jan 1956 to 31 Dec 1956; citizen Russia; Gender Male (individual) [CAATSA – RUSSIA] (Linked To: MAIN INTELLIGENCE DIRECTORATE).

PODKOPAEV, Vadim Vladimirovich, Russia; DOB 01 May 1985; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

POLOZOV, Sergey Pavlovich, Russia; DOB 13 Oct 1987; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

VASILCHENKO, Gleb Igorevich, Russia; DOB 13 Apr 1991; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

VENKOV, Vladimir, Russia; DOB 28 May 1990; Gender Male (individual) [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

The following entity has been added to OFAC’s SDN List:

INTERNET RESEARCH AGENCY LLC (a.k.a. AZIMUT LLC; a.k.a. GLAVSET LLC; a.k.a. MEDIASINTEZ LLC; a.k.a. MIXINFO LLC; a.k.a. NOVINFO LLC), 55 Savushkina Street, St. Petersburg, Russia [CYBER2].

The following changes have been made to OFAC’s SDN List:

ALEXSEYEV, Vladimir Stepanovich; DOB 24 Apr 1961; Passport 100115154 (Russia); First Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE). -to- ALEXSEYEV, Vladimir Stepanovich; DOB 24 Apr 1961; Passport 100115154 (Russia); First Deputy Chief of GRU (individual) [CYBER2] [CAATSA – RUSSIA] (Linked To: MAIN INTELLIGENCE DIRECTORATE).

CONCORD CATERING, Nab. Lieutenant Schmidt D. 7, von Keyserling Mansion, St. Petersburg 119034, Russia; Ulitsa Volkhonka Dom 9, Moscow 119019, Russia [UKRAINE-EO13661]. -to- CONCORD CATERING, Nab. Lieutenant Schmidt D. 7, von Keyserling Mansion, St. Petersburg 119034, Russia; Ulitsa Volkhonka Dom 9, Moscow 119019, Russia [UKRAINE-EO13661] [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

FEDERAL SECURITY SERVICE (a.k.a. FEDERALNAYA SLUZHBA BEZOPASNOSTI; a.k.a. FSB), Ulitsa Kuznetskiy Most, Dom 22, Moscow 107031, Russia; Lubyanskaya Ploschad, Dom 2, Moscow 107031, Russia [CYBER2]. -to- FEDERAL SECURITY SERVICE (a.k.a. FEDERALNAYA SLUZHBA BEZOPASNOSTI; a.k.a. FSB), Ulitsa Kuznetskiy Most, Dom 22, Moscow 107031, Russia; Lubyanskaya Ploschad, Dom 2, Moscow 107031, Russia [CYBER2] [CAATSA – RUSSIA].

GIZUNOV, Sergey (a.k.a. GIZUNOV, Sergey Aleksandrovich); DOB 18 Oct 1956; Passport 4501712967 (Russia); Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE). -to- GIZUNOV, Sergey Aleksandrovich (a.k.a. GIZUNOV, Sergey); DOB 18 Oct 1956; Gender Male; Passport 4501712967 (Russia); Deputy Chief of GRU (individual) [CYBER2] [CAATSA – RUSSIA] (Linked To: MAIN INTELLIGENCE DIRECTORATE).

KOROBOV, Igor (a.k.a. KOROBOV, Igor Valentinovich); DOB 03 Aug 1956; nationality Russia; Passport 100119726 (Russia); alt. Passport 100115101 (Russia); Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE). -to- KOROBOV, Igor Valentinovich (a.k.a. KOROBOV, Igor); DOB 03 Aug 1956; nationality Russia; Gender Male; Passport 100119726 (Russia); alt. Passport 100115101 (Russia); Chief of GRU (individual) [CYBER2] [CAATSA – RUSSIA] (Linked To: MAIN INTELLIGENCE DIRECTORATE).

KOSTYUKOV, Igor (a.k.a. KOSTYUKOV, Igor Olegovich); DOB 21 Feb 1961; Passport 100130896 (Russia); alt. Passport 100132253 (Russia); First Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE). -to- KOSTYUKOV, Igor Olegovich (a.k.a. KOSTYUKOV, Igor); DOB 21 Feb 1961; Passport 100130896 (Russia); alt. Passport 100132253 (Russia); First Deputy Chief of GRU (individual) [CYBER2] [CAATSA – RUSSIA] (Linked To: MAIN INTELLIGENCE DIRECTORATE).

LIMITED LIABILITY COMPANY CONCORD MANAGEMENT AND CONSULTING (a.k.a. KONKORD MENEDZHMENT I KONSALTING, OOO; a.k.a. LLC CONCORD MANAGEMENT AND CONSULTING; a.k.a. OBSHCHESTVO S OGRANNICHENNOI OTVETSTVENNOSTYU KONKORD MENEDZHMENT I KONSALTING), D. 13 Litera A, Pom. 2-N N4, Naberezhnaya Reki Fontanki, St. Petersburg 191011, Russia; Registration ID 1037843002515 [UKRAINE-EO13661]. -to- LIMITED LIABILITY COMPANY CONCORD MANAGEMENT AND CONSULTING (a.k.a. KONKORD MENEDZHMENT I KONSALTING, OOO; a.k.a. LLC CONCORD MANAGEMENT AND CONSULTING; a.k.a. OBSHCHESTVO S OGRANNICHENNOI OTVETSTVENNOSTYU KONKORD MENEDZHMENT I KONSALTING), D. 13 Litera A, Pom. 2-N N4, Naberezhnaya Reki Fontanki, St. Petersburg 191011, Russia; Registration ID 1037843002515 [UKRAINE-EO13661] [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

MAIN INTELLIGENCE DIRECTORATE (a.k.a. GLAVNOE RAZVEDYVATEL’NOE UPRAVLENIE (Cyrillic: ГЛАВНОЕ РАЗВЕДЫВАТЕЛЬНОЕ УПРАВЛЕНИЕ); a.k.a. GRU; a.k.a. MAIN INTELLIGENCE DEPARTMENT), Khoroshevskoye Shosse 76, Khodinka, Moscow, Russia; Ministry of Defence of the Russian Federation, Frunzenskaya nab., 22/2, Moscow 119160, Russia [CYBER2]. -to- MAIN INTELLIGENCE DIRECTORATE (a.k.a. GLAVNOE RAZVEDYVATEL’NOE UPRAVLENIE (Cyrillic: ГЛАВНОЕ РАЗВЕДЫВАТЕЛЬНОЕ УПРАВЛЕНИЕ); a.k.a. GRU; a.k.a. MAIN DIRECTORATE OF THE GENERAL STAFF; a.k.a. MAIN INTELLIGENCE DEPARTMENT), Khoroshevskoye Shosse 76, Khodinka, Moscow, Russia; Ministry of Defence of the Russian Federation, Frunzenskaya nab., 22/2, Moscow 119160, Russia [CYBER2] [CAATSA – RUSSIA].

PRIGOZHIN, Yevgeniy Viktorovich (a.k.a. PRIGOZHIN, Evgeny), Russia; DOB 1961; Gender Male (individual) [UKRAINE-EO13661]. -to- PRIGOZHIN, Yevgeniy Viktorovich (a.k.a. PRIGOZHIN, Evgeny), Russia; DOB 01 Jun 1961; Gender Male (individual) [UKRAINE-EO13661] [CYBER2] (Linked To: INTERNET RESEARCH AGENCY LLC).

*  *  *

One wonders if there are any Russians (or Russian entities) left to sanction?

Apparently there are – Treasury Secretary Stephen Mnuchin said that more Russian officials and oligarchs are to face sanctions.

And for now, the most obvious reaction to these new sanctions is further selling of the Ruble – to one-month lows…

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Larry Kudlow: Fed Should Let Economy “Rip” And Not “Overdo It” With Rate Hikes

The White House didn’t officially confirm that CNBC’s Larry Kudlow would replace Gary Cohn as director of the National Economic Council until this morning, but last night, Kudlow demonstrated that he’s already comfortable in the role during a wide-ranging interview with his (soon-to-be-former) colleagues on America’s No. 1 business news network.

To wit, Kudlow surprised investors by offering his views on certain topics that are typically left to the Treasury Secretary of Federal Reserve officials.

Kudlow

Investors were surprised to hear Kudlow declare, with little warning, that he would “buy the dollar and sell gold,” adding that he has “no reason to believe the president doesn’t support a strong, stable dollar.”

But given the centrality of a weak dollar to Trump’s trade-focused agenda, one Twitter user wryly pointed out that the comment was Kudlow’s first documented lie in his new job…

 

And although he doesn’t get his own “dot” on the Fed’s dot plot, Kudlow apparently felt comfortable offering his two cents on how the central bank should go about raising interest rates, cautioning that the Fed shouldn’t rush to hike rates four times this year.

We’d like to know: Does Kudlow realize that, 819 days into the hiking cycle, stocks actually love higher rates (despite all the chatter from market strategists)? …for now!

Fed

Given the “goldilocks” economy that we’re living in (though that perception is already unraveling) Kudlow says the Fed shouldn’t rush to hike rates, and should instead just “let it rip” when it comes to growth…

Evans: Guys, thanks for joining us we love this concept. Karen, whats your Larry trade now? No pressure cause it is not like he is listening or anything.

Karen Finerman: All right, yeah I mean, I love Larry I got to say, going into today, long a lot of puts, didn’t love the Gary Cohn change, but of everyone out there, im most excited about this choice, outstanding hell do a great job I think –

Kudlow: Thank you

Finerman: A very, very great job, not just on policy, but the other parts you talked about, communication. Which is maybe equally or sometimes more important. You have the skills to do both so I think you’re an outstanding choice.

Kudlow: Thank you, Karen, much appreciated.

Tim Seymour: Larry, congratulations, and major yes buyers as we say on Larry, mostly because if you look at the market over the last couple days, we’ve gone with being concerned about overheating to a place where now we question growth granted, there’s been a couple macro points, retail sales, PMIs around the world slowing a little bit, but bottom line is the world needs to understand, I should say markets need to understand what the world understands. Were in a better environment globally as Larry pointed out yes better to punish your enemies and not your friends at the same time we are learning this now, who is pro or against, fair deals or not. Regardless the momentum for corporate EPS and where are with in the country right now is still bullish.

Kudlow: Yes.

Seymour: The fact in three days we have sold to different places in the market, and sentiments, have caution on that view, and, therefore, Larry is a fresh voice in the equation, and if that takes us higher, I’m a yes buyer on Larry Kudlow.

Kudlow: thank you, thank you very much look, somebody said profits are the mothers milk of stocks. I cant remember who that was.

Evans: it could have been a wise guy on CNBC. I’m going to put him on the spot really now

Kudlow: the profit picture is good. It’s looking real good, and growth is not inflationary just let it rip for heaven’s sakes. The market is going to take care of itself. The story takes care of itself let it rip the fed will do what it has to do, but I hope they don’t overdo it.

Kudlow worked at the New York Fed early in his career. More recently, Kudlow had said that the Trump tax cuts would give the central bank more room to raise interest rates more quickly – to help ensure that the central bank is ready for the next crisis.

Gary Cohn, Kudlow’s predecessor was more circumspect. As Bloomberg reminds us, Cohn deferred to the Fed when asked for his views on the central bank’s policy.

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Trump’s Wall Is Performance Art, Not Border Security: New at Reason

Donald Trump loves the ceremonial parts of his job, writes Steve Chapman, and his trip to California to inspect prototypes for a border wall was pure theater. He got to project toughness, point to something tangible, make big promises, and take credit—without actually accomplishing anything. He’s not a president; he’s a performance artist.

Of all his campaign pledges, none was more appealing to those at his rallies than the border wall. And as Chapman observes, none was more harebrained.

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“Curb Your Enthusiam!”

Authored by Kevin Muir via The Macro Tourist blog,

It’s 819 days since the start of the Fed tightening cycle. Why would I know that so precisely? Because I just finished creating a chart of the stock market performance before and after the first fed tightening.

Indexing the stock market performance around certain events like the first Fed hike is not novel. Tons of market strategists create these sorts of visuals. But Ned Davis created a chart I found so fascinating – what’s that line about good and great artists? Well, I am stealing it.

Actually, I just wanted to see it updated, so I thought it was worth recreating from scratch, but all the credit goes to Ned.

As I mentioned, in a lot of ways it’s just a regular piece of research. The truly insightful part of Ned’s chart was to divide the tightening cycles into slow and fast campaigns. For example, when the Fed began hiking in April of 1955, they raised rates at a gradual, slow pace. This was in contrast to November of 1967 when the Federal Reserve raised rates quickly.

Taking each Fed funds tightening cycle, Ned divided them into slow or fast campaigns. He then took the return of the S&P 500 around those periods. Day 0 represents the first hike and at that point, the S&P 500 is indexed to 100. Taking each bucket, an equal weighted average of the S&P 500 performance is created.

So without further ado, here is the chart of the performance of the S&P 500 before and after the first tightening, but grouped by the speed at which the Fed raised rates.

The fast tightening cycles have typically seen an initial underperformance. But then, they catch up, and by the third year, they actually outperform slower tightening campaigns.

The really interesting part? Today, we are sitting at the outperformance peak for the slow cycles. So if you accept that the current slow tightening cycle plays out like previous ones, then the stock market is about to drift lower in the coming year.

And what does the current stock market performance look like compared to previous ones? To no great surprise, this latest cycle has blown the doors off typical returns.

I would have thought the best development for the stock market would have been an economic pause that allows the Fed to slow down their hikes. Yet this data suggests that what we really should hope for is a rip-roaring economy that causes the Fed to tighten quickly.

There is no doubt that this cycle is different due to QE and other unusual factors, but history suggests it might be time to temper the enthusiasm as the slow cycle rally is about all played out.

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Broward County Sheriff Scott Israel Refuses to Explain His Office’s Failures to Congress

CommitteeScott Israel, the embattled sheriff of Florida’s Broward County, won’t answer Congress’s questions about a collective failure to prevent the mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida.

Israel was asked to appear before the Senate Judiciary Committee’s hearing on school safety and gun control this week. Both Israel and Florida Department of Children and Families Secretary Michael Carroll refused the request, earning a stern rebuke from Sen. Chuck Grassley (R-Iowa), who chairs the committee.

“By thumbing their noses at Congress, Sheriff Israel and Secretary Carroll have let the American people down and also the citizens of Florida they serve,” said Grassley, according to The Hill. “[T]he Broward County Sheriff and Department of Children and Families are integral to the Parkland fact pattern.”

Perhaps it’s no surprise that Israel and Carroll were unwilling to subject themselves to Congressional criticism, but Israel was perfectly happy to appear on television in the immediate wake of the tragedy, before his own office’s mistakes became the story. Israel really does seem like a consummate media opportunist: eager to commandeer the spotlight when it makes him look strong and decisive, uninterested in being held publicly accountable for the numerous errors his officers committed. Recall Israel’s own appraisal of his leadership: “amazing.”

The Department of Children and Families, Florida’s version of child protective services, has plenty to answer for as well. In 2016, the agency mistakenly determined that Nikolas Cruz posed no threat to himself or others.

At the hearing on Wednesday, FBI Deputy Director Bill Bowdich took some responsibility for his agency’s missteps. The FBI had learned that Cruz was mutilating small animals, possessed a cache of weapons, had threatened other family members, and was planning to shoot up a school, but agents did not follow up on this information.

“We made mistakes here, no question about it,” said Bowdich, according to The Los Angeles Times. “That said, even if we had done everything right, I’m not sure we could have stopped the attack.”

It’s true that not every horrific tragedy can be prevented by law enforcement, even if everyone does their jobs. But the public entities involved in the Parkland incident did everything wrong: in the weeks leading up to the shooting, and even as it was unfolding. They should be held accountable; Israel, too.

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Russian Plane Loses Tons Of Gold And Precious Metals On Takeoff

In the west there is “helicopter money.” In Russia, they do “airplane gold.”

Gems, precious metals and diamonds rained over Russia’s coldest region when a Russian plane with ten tons of gold, platinum and diamonds lost a significant part of its cargo upon take off from Yakutsk airport today.

The precious rain then continued as the aircraft gained height.

The Nimbus Airlines AN-12 cargo plane hit problems during takeoff, resulting in a breach in the hull that allowed its precious cargo to fall all over the runway.

The plane then dropped some bars of gold as far as 26kms from the airport.

The crew decided to land at the nearby airport of Magan, some 26km north-west of Yakutsk.

According to the Siberian Times, police sealed off the runway and a vast search is underway.

The monetarist dream plane was en route to Krasnoyarsk and further to the Kupol Dome mine.

The cargo was reportedly to be owned by Chukota Mining and Geological company which is 75% owned by Canada’s Kinross Gold.

Meanwhile, the technical engineers at the Yakutsk airport who prepared the plane for takeoff have been detained.

The value of the load was put at 21 billion rubles, or $370 million.

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Loonie Tests 2018 Lows As Canada Existing Home Sales Crash To 5 Year Lows

The Canadian Dollar dropped, testing the lows of 2018, following CREA data showing existing home sales crashed to the lowest since 2013 and price appreciation slowed dramatically.

Home sales via Canadian MLS® Systems were down 6.5% in February. This marks the second consecutive monthly decline following the record set in December 2017 and the lowest reading in nearly five years.

February sales were down from the previous month in almost three-quarters of all local housing markets, with large monthly declines in and around Greater Vancouver (GVA) and Greater Toronto (GTA).

Toronto home sales are down 8.2% MoM!

Vancouver home sales are down 15.8% MoM!

Actual (not seasonally adjusted) activity was down 16.9% year-over-year (y-o-y) and hit a five-year low for the month of February. Sales also stood 7% below the 10-year average for the month of February. Sales activity came in below year-ago levels in 80% of all local markets in February, including those nearby and within Ontario’s Greater Golden Horseshoe (GGH) region.

“The drop off in sales activity following the record-breaking peak late last year confirms that many homebuyers moved purchase decisions forward late last year before tighter mortgage rules took effect in January,” said Gregory Klump, CREA’s Chief Economist.

“Momentum for home sales activity going into the second quarter is also likely to weighed down by housing market uncertainty in British Columbia, where new housing polices were introduced toward the end of February.”

Furthermore, CREA notes that the Aggregate Composite MLS® HPI rose by 6.9% y-o-y in February 2018. This was the 10th consecutive deceleration in y-o-y gains, continuing a trend that began last spring. It was also the smallest y-o-y increase since October 2015.

and the kneejerk reaction in the market is to sell the Loonie, now trading back at 2018 lows – the lowest since July 2017..

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A.M. Links: Stormy Daniels’ Lawyer Says More Women May File Suit Against Trump, Conor Lamb Wins Pennsylvania Special Election, Toys ‘R’ Us Closing All U.S. Stores

  • Michael Avenatti, the lawyer representing Stormy Daniels, says that other woman are contemplating legal action against President Donald Trump.
  • “President Trump boasted in a fundraising speech Wednesday that he made up information in a meeting with the leader of a top U.S. ally, saying he insisted to Canadian Prime Minister Justin Trudeau that the United States runs a trade deficit with its neighbor to the north without knowing whether that was the case.”
  • Democrat Conor Lamb has been declared the winner of the Pennsylvania special election for the U.S. House.
  • Russian Foreign Minister Sergei Lavrov says that his country will “certainly” expel British diplomats in retaliation for Britain’s expulsion of 23 Russian diplomats in the wake of the nerve agent attack in Britain on a former Russian spy.
  • Toys ‘R’ Us announced that it will be shuttering or selling off all of its 735 U.S. stores.
  • Supreme Court Justice Ruth Bader Ginsburg turns 85 years old today.

Follow us on Facebook and Twitter, and don’t forget to sign up for Reason’s daily updates for more content.

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France, Germany, US Demand Russia Explain UK Attack Despite Decrying May’s “Fantasy Politics”

Update: Just hours after Macron issued the statement below demanding “more proof” and decrying May’s “fantasy politics,” it appears a phone call with the UK has changed the attitude and Germany, US, and France have now issued a statement that says they agree with UK that “Russia must be responsible” for the UK attack.

The countries are “horrified” at the attack, according to the joint statement, and explain in full-Haley (Colin-Powell-esque) fearmongery, warn the attack “threatens the security of us all” and Russia must explain the UK attack.

As AP reports, the leaders of the United States, France, Germany and Britain say they are united in blaming Russia for a nerve agent attack on former spy Sergei Skripal.

In a rare joint statement, President Donald Trump, President Emmanual Macron, Chancellor Angela Merkel and Prime Minister Theresa May say “there is no plausible alternative explanation” to Russian responsibility in the March 4 attack in England.

They say Russia’s failure to respond to Britain’s “legitimate request” for an explanation “further underlines its responsibility.”

First use of nerve agent in Europe since World War II “threatens all of our security”

The leaders say the use of a chemical weapon is “an assault on U.K. sovereignty” and “a breach of international law.”

“We call on Russia to respond to all questions connected with the attack in Salisbury,” particularly those relating to its Novichok program

Britain has expelled 23 Russian diplomats and suspended high-level contacts with Moscow over the incident. Russia is expected to take retaliatory measures soon.

*  *  *

As we detailed earlier, UK Prime Minister made many of her European allies uneasy (particularly those who, like Germany, rely on Russia for supplies of LNG) on Monday when she accused the Russian government of masterminding an attack on former Russian spy Sergei Skripal and his daughter Yulia Skripal – an attack that left 18 bystanders and one law-enforcement officer hospitalized. 

And with Russia threatening to retaliate, France’s Emmanuel Macron – hardly a far-right authoritarian – is speaking up and undermining May’s push to rally international support for another round of sanctions against Russia, according to RT.

Macron said he wants more proof linking Russia to the attack – which occurred at a shopping center in Salisbury earlier this month. So far, the UK government has essentially admitted that its strongest evidence was the presence at the scene of a nerve agent known to have been developed in Russia. May has threatened sanctions in response to the attack. And on Tuesday, she ordered 23 Russian diplomats to leave the country. The reaction resembled the UK’s response to the death via radiation poisoning of Alexander Litvinenko.

May

Via a spokesman, Macron accused May of engaging in “fantasy politics.”

On Wednesday, May announced the expulsion of 23 Russian diplomats and the suspension of bilateral talks. May claimed Russia was “culpable” for the poisoning of former double agent Sergei Skripal and his daughter Yulia, which amounted to “unlawful use of force against the UK.”

However, President Emmanuel Macron’s spokesman suggested May was acting prematurely. “We don’t do fantasy politics. Once the elements are proven then the time will come for decisions to be made, Benjamin Griveaux told a news conference in Paris.

Griveaux added that France was waiting for “definitive conclusions” and evidence that the “facts were completely true” before taking a position. He said that the Salisbury poisoning was a “serious act” against a strategic ally, but France would await evidence of Russian involvement before taking a position.

Russian Foreign Minister Sergei Lavrov has asked the UK for a sample of the toxin that it’s citing as evidence so that it might be examined by Russia.

Lavrov has also threatened to retaliate by expelling British diplomats. Russia has also refused to respond to the UK’s demand that it furnish an explanation for how the nerve agent came to be found at the scene. Did Russia deliberately plan the attack? Or did it simply recklessly lose track of dangerous chemical weapons? The UK said it would give Russia a day to respond, infuriating the Kremlin.

In return, Russia has sternly rebuked the UK for its conduct, cautioning that “one does not give 24 hours notice to a nuclear power.”

In addition to refusing to share the toxin, the UK is resisting settling the issue through the proper channels – ie the Organization of the Prohibition of Chemical Weapons. Russia and the UK are both members.

Moscow’s permanent representative to the United Nations, Vassily Nebenzia, said Wednesday that “we demand that material proof be provided of the allegedly found Russian trace in this high-resonance event. Without this, stating that there is incontrovertible truth is not something that we can take into account.”

Even Labour leader Jeremy Corbyn has also challenged May’s evidence of Russian culpability. Corbyn believes there is not enough proof to conclude Russia was behind the incident.

“The government has access to information and intelligence on this matter which others don’t. However, there is also a history in relation to weapons of mass destruction and intelligence which is problematic, to put it mildly,” said Corbys spokesman Seumas Milne. “I think the right approach is to seek the evidence to follow international treaties, particularly in relation to prohibitive chemical weapons.”

* * *

However, as one Twitter user pointed out, if Russian President Vladimir Putin really did personally authorize the “wet job” – FSB-speak for assassination – then for a reportedly ‘smart guy’, he picked a remarkably ill-time moment to carry out such an attack…

 

 

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