Iran And Israel In Unprecedented Indirect Talks Over Syria: Report

After continuing escalation in Syria last week in which Syria accused both the US and Israel of conducting two separate airstrikes on pro-government forces, there are new reports of unprecedented indirect talks being held between Iran and Israel. And related unconfirmed reports suggest the Syrian government may have asked Iranian forces to withdraw their presence from key bases previously targeted in Israeli airstrikes. 

Though neither side has yet to confirm the events first reported in Saudi media and subsequently picked up in some Israeli media outlets (and are likely not going to), it could constitute the closest the two longtime Middle East enemies have come to engaging in diplomatic dealings over the crisis in Syria.

Israeli military personnel look from the Golan Heights over southwest Syria, November 2017. Image source: Reuters via EA Worldview 

The news also comes after the May 10 massive exchange of missiles between Israel and Syria in what was described as the “most direct confrontation between Israel and Iran in decades,” and after Putin told Assad there is a need to withdraw “all foreign forces” from Syria, though it was unclear at the time whether the Russian president meant foreign jihadists and Western forces like the United States, or (as most US outlets reported) Iran’s heavy troop presence in Syria. 

The Saudi-owned news site Elaph first revealed that the indirect Iran-Israel talks took place this weekend at a hotel in Amman. Elaph has lately become known for gaining a surprising level of access to Israeli officials, giving it a reputation as a news source Israel uses to communicate its message across the Arab world. 

Middle East Eye summarizes the Arabic language story as follows:

Iran reportedly pledged to stay out of fighting in southwest Syria between Syrian forces and rebel groups while Israel said it will not intervene in battles near the Israeli-occupied Golan Heights or the Israel-Jordan border so long as Hezbollah and Iranian-backed militias are not involved.

For the negotiations, Iran’s ambassador to Jordan, Mostafa Moslehzadeh, stayed in a hotel room with Iranian security personnel next door to a room of senior Israeli security officials, including the deputy head of Mossad, Elaph reported.

Jordanian officials served as mediator, shuttling messages between the two rooms, according to the report.

Apparently, the two sides did come to some agreement of terms. Middle East eye continues:

One participant told Elaph that the Iranians “arrived at a quick agreement” that its forces would not intervene in fighting near the Golan Heights and the Israel-Jordan border, surprising the Israeli representatives.

Currently, Damascus is preparing for a showdown in the south, mustering its forces to take back all of Deraa and Quneitra provinces where fighting began during the opening months the war starting in 2011. Syrian state media has reported that government planes have dropped leaflets over towns in the region, warning anti-Assad forces that they must disarm or face military attack. 

Deraa and Quneitra are regions in the south and southwest where anti-Assad militants, most of them al-Qaeda linked, have received strong support from the US-Gulf coalition and Israel. As the Wall Street Journal has long acknowledged, Israel has given direct support to al-Qaeda forces as it sees the terror group as a “lesser evil” compared to Assad and Iran. 

And perhaps less well-known is that both current and former Israeli military leaders have express their preference for ISIS on their border, as opposed to pro-Shia Iran forces. 

Wall Street Journal: Israel’s main concern is “Iran, not ISIS”:

 

Confirmed in Israeli media: a large ISIS pocket neighboring the Israeli occupied Golan Heights 

Meanwhile, President Assad has long vowed to regain “every inch” of Syria; however, this is unlikely to happen without the close military and diplomatic support of allies Iran and Russia. 

On Monday Prime Minister Benjamin Netanyahu reiterated Israel’s position that it would not tolerate Iran’s present along the Golan border. “Our position on Syria is clear,” he told his parliamentary faction in televised remarks, “We believe that there is no place for any Iranian military presence, anywhere in Syria.”

This follows a US State Department statement last Friday which threatened that the US would take “firm and appropriate measures” against Syrian government forces, claiming repeat “ceasefire violations” and concerned over the reports of the new military operation in Deraa.

US State Department spokeswoman Heather Nauert referenced the thus far tenuously-holding deal between the US, Russia, and Jordan struck last November which among other stipulations proposed efforts for “the reduction, and ultimate elimination of foreign forces and foreign fighters from the area to ensure a more sustainable peace.” This was widely interpreted at the time as calling for an “Iran-free zone” in southern Syria, as Israel has long threatened to go to war should Iranian troops be present near its border.

Notably, a Reuters report acknowledges the US warning issued late Friday comes as 1) Syrian government forces have cleaned out the last ISIS pockets in the country’s south; and 2) Damascus is now “in its strongest position since the early months of the war in 2011”. Reuters notes further that the government has “recaptured all remaining insurgent areas near Damascus in recent weeks, including the densely populated eastern Ghouta area, as well as big enclaves in central Syria.” 

So essentially while warning against “Assad regime violations” and expansion, the State Department is reasserting the US position that Syria cannot “expand” within its own sovereign borders (borders obviously long recognized internationally and by the United Nations).

But if the new reports of indirect Israel-Iran talks are true, it could signal Israel’s willingness to back down from its dangerous months-long path of escalation in Syria. 

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Farrakhan Pivots Pro-Trump? “He’s Destroying Every Enemy Of Our Rise”

‘The Left’ may have a problem. Outspoken anti-Trump-ers such as Linda Sarsour, Maxine Waters, and Barack Obama may soon have to distance themselves from supporting anti-semitic leader of the Nation of Islam movement, Louis Farrakhan…

Because, as  Thomas Lifson via AmericanThinker.com explains, Farrakhan appears to have changed his opinion of Donald Trump since two years ago, when he warned black Americans:

“If Donald Trump becomes president, he will take America into the abyss of hell.”

Appearing on Chicago radio station WGCI, on a program titled “The Morning Takeover,” he stated that it may not have been the intent of this administration to help, but that Trump is destroying the enemies of the Nation of Islam. Included in this group are the Department of Justice and the FBI.

Farrakhan tweeted out a two-minute video of this sort-of endorsement of Trump:

Additionally, Farrakhan called for an end to white men, saying that their “nature is not in harmony with the nature of God.”

And as The Daily Caller’s Virgina Kruta notes, Farrakhan went on to claim that white men had squandered the time God gave them to rule, alleging that they had chosen not to rule with righteousness, truth, justice, or fairness.

So far, there has been barely a ripple from the media over this shocking statement.  I only came across it through a tweet from a parody artist who claims to be a Republican representative under the name Steven Smith of Georgia.

Farrakhan promises more to come on his opinion of President Trump.  It is far too soon to conclude that he is coming around to support the POTUS, but that is certainly a possibility.  And his statement so far is enough to help a significant number of black voters to start questioning the taboo enforced by any black organizations against support for any Republicans.  You can be sure that Democrats are worried sick.

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What Happens To Oil Next: The Well-Forgotten Answer?

The last four days have seen WTI Crude prices plunge almost 10% from their cycle peak near $73 to a $65 handle overnight.

This is the longest run of losses in almost four months as Saudi Arabia and Russia said they are discussing raising output to ease consumer anxiety after prices jumped to levels last seen in 2014.

Saudi Arabia and Russia signaled they’ll restore some of the output they cut as part of a deal between OPEC and its allies that took effect in January last year. Potential opposition from several producers could complicate the group’s effort to reach a consensus when it meets next month in Vienna.

“It was always going to be a tricky announcement of when to ease production cuts,” said Ole Sloth Hansen, head of commodities research at Saxo Bank A/S in Copenhagen. “Oil was already on the defensive.”

However, we have seen all this before – We are now at the peak of a similar shape and timed move as the 2008-2011 rebound…

After the $115 peak in 2011, oil ranged between $115 and $75 for 30 months. A similar dynamic this time would suggest a $70 to $50 multi-year range… which fits with what Russian President Vladimir Putin said last week – that oil prices at $60 fully suit Russia and the country doesn’t want them to spiral higher. Anything above that level “can lead to certain problems for consumers, which also isn’t good for producers,” he said. OPEC and his nation don’t plan to stick to existing output cuts, he said.

And while Goldman Sachs’ fundamental views are that oil prices will strengthen:

Saudi Arabia and Russia signaled today that they would likely ease their production cuts in the second half of the year. Comments by their Energy Ministers suggest that such a decision would be driven by concerns that high oil prices start to impact global economic activity and was spurred by pressure from the US and China to bring barrels back online. Oil prices have sold off on these comments.

While today’s announcement lifts some of the uncertainty on whether and when OPEC and Russia would increase production, we do not view this as a material change to our bullish oil outlook:

  1. this response is occurring because of a tight oil market,

  2. its magnitude is still uncertain but, even at 1 mb/d, such an increase would simply offset the involuntary production declines with the group still committed to restraining output,

  3. even at 1 mb/d, its gradual implementation would leave the market in deficit through 3Q18,

  4. ongoing disruptions in Venezuela and potential losses from Iran are likely to partially offset this higher supply, as well as

  5. require further increases in production in 2019, which will further reduce already limited spare capacity next year.

Despite greater clarity on the OPEC/Russia response function, today’s headlines by no means suggest the oil market is on a smooth path to rebalancing. Instead, the current level of the market deficit, the robustness of the demand backdrop, and the rising levels of disruptions all set the stage for inventories to fall further all the while OPEC spare capacity is drawn down. As a result, even if today’s headlines provide a cap on prices in the short term, we reiterate our $82.5/bbl 3Q18 Brent price forecast (which effectively embedded such a supply response) and still see risks to prices in 2H18-2019 as skewed to further upside. In fact, history shows that increases in OPEC production quotas in a strong demand environment (like today) are followed by higher prices in the subsequent months.

Goldman’s technical team sees significant downside as they warn that crude oil posted a bearish key week reversal…

WTI Crude tested and held the 1.618 extension target at $71.76…

This 71.76 level was the target for a 5th of 5-waves from Jun. ‘17 lows. It’s since posted a bearish key weekly reversal against negatively diverging oscillators. The market hasn’t posted one of these patterns (from a local high) since ‘13. 

Bottom line, there’s a good chance the market has completed a 5-wave sequence here, which means that it’s due to start a corrective process.

A short-term top is likely in place, it could take some before WTI is able to resume its uptrend.

Wedges are classic ending patterns that often result in sharp/impulsive breakouts. The breakout thus far has been pretty textbook.

The next congestion area to note is 66.8066.31; includes 23.6% from the Jun. ‘17 low.

The wedge itself suggests potential to retrace the full extent of its ascent to 61.73, near 38.2% retrace 62.23. 

View: Next congestion area below 66.80-66.31. Scope to retrace as much as 62.23-61.73.

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Free Speech Loses at University of Virginia: New at Reason

U.Va protestsIf any state university is right to limit speech by members of the public on its grounds, the University of Virginia is that university. Last summer it played unwilling host to a mob of torch-bearing white supremacists shouting “Jews will not replace us!” and other repellent things.

The next day, demonstrations by more white supremacists at Lee Park in Charlottesville led to violent clashes with counterprotesters and the murder of Heather Heyer. It was a shocking episode that made news around the globe.

So you can understand why the university has adopted a new policy restricting speech on the grounds by persons or groups not affiliated with the school. Under the new policy, those who wish to speak on the grounds may do so only in one of nine outdoor locations. Would-be speakers, pamphleteers, and the like must request a reservation at least seven days in advance (but no more than one month in advance), and the reservations are good only for two-hour blocks Monday through Friday. An applicant cannot make more than one reservation a week. Applicants cannot use a location that is in use by somebody else at the same time.

There’s just one thing, A. Barton Hinkle explains: No public university is right to do limit protests in this manner. Especially not U.Va..

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“Memorialize This!”

Authored by James Howard Kunstler via Kunstler.com,

War for the USA these days is a weird, inconclusive enterprise.

Our objectives are poorly discerned, hardly even articulated anymore, just a pattern of going through the motions as destructively as possible with no end in sight.

How many Americans can state what our mission in Afghanistan is after seventeen years of blundering around its bare mountains and valleys?

What exactly has been the point of our exercises in Syria?

To get rid of Bashar al-Assad, the wonks might say. Really? And replace him with what? With the ragtag ISIS maniacs we’ve been shoveling arms and money to?

What goes on in the Baghdad Green Zone these days with Operation Inherent Resolve still underway?

How come four US Special Forces soldiers were killed in Niger in 2017? Do you know what they were doing there?

How many Americans can even say where Niger is on a map? How much better is life in Somalia these days with American soldiers on-the-scene?

What was the net effect of our effort to liberate Libya in 2011 (Operation Freedom Falcon)?

What factions are US military advisors training in Ukraine?

And what for?

Defense Secretary James Mattis says, “We’re working with them on reform of their military.” Hmmm…. So they can be more like us?

Did you happen to notice Sunday that many Major League Baseball teams were sporting military-themed camo caps? What’s up with that? Are we planning to send Aroldis Chapman to throw 105mph fastballs at Hezbollah? In fact, camo has been a popular theme in civilian fashion for years so that everyone from truck drivers to millionaire rap stars can affect to be mighty warriors. Did you know that since 2009 the National Football League has been under contract with the US military to stage on-field patriotic tributes and warplane flyovers — and how much do these displays cost (taxpayer alert)?

I suppose that military prowess is all we’ve got left in the national pride bag in these times of foundering empire.

Few are fooled these days by the “land of opportunity” trope when so many young people are lucky to get a part-time gig on the WalMart loading dock along with three nights a week of slinging Seaside Shrimp Trios for the local Red Lobster. Of course, there are a few choice perches in venture capital out in Silicon Valley, or concocting collateralized loan obligations in the aeries of Wall Street – but nobody is playing Aaron Copeland’s Fanfare for the Common Man to celebrate these endeavors.

There’s a macabre equivalency between our various overseas war operations and the school shootings that are now a routine feature of American daily life. The purposes are equally obscure and the damage is just as impressive – many lives ruined for no good reason. But consider more lives are lost every year in highway crashes than in the Mexican War of the 1840s and more Americans are dying each year lately of opioid overdoses than the entire death toll of the Vietnam War. America’s soul is at war with its vaunted way-of-life.

It’s hard to be empire, for sure, but it’s even harder, apparently, to be a truly virtuous society. First, I suppose, you have to be not insane. It’s hard to think of one facet of American life that’s not insane now. Our politics are insane. Our ideologies are insane. The universities are insane. Medicine is insane. Show biz is insane. Sexual relations are insane. The arts are insane. The news media is utterly insane. And what passes for business enterprise in the USA these days is something beyond insane, like unto the swarms of serpents and bats issuing from some mouth of hell in the medieval triptychs. How do you memorialize that?

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Italian Banks, Bonds Crash As Di Maio Calls For Protests Against “The Arrogance Of Institutions”

Five Star leader Luigi Di Maio addressed the Italian nation on  a live Facebook feed this afternoon calling for them to mobilize against the institution represented by President Mattarella and demanding a new election as soon as possible.

“We can not stand watching, we must react immediately firmly. Today he will hang an Italian flag out the window and ask you to do the same. We claim the pride of being Italian…”

“There are tons of lies. I have said throughout the electoral campaign that we do not want to leave the euro. Savona would not take us out of the euro, he would have asserted Italy’s interests in the EU headquarters “.

“On June 2nd I invite everyone to come to Rome for a great demonstration.”

Yesterday – with the “no” of the Quirinale to the binding of Lega and M5s on the name of Sardinian economist Paolo Savona – “was the darkest night of democracy”, he added.

“We ask to go to the vote as soon as possible. Even in August? As soon as possible”, he clarified at the end of the meeting in the Chamber with Matteo Salvini.

“We are totally convinced to carry on” the impeachment.

“President Mattarella has decided to entrust the country to a technician in the mountains.”

“It is an ignoble act not to have allowed” the birth of the government governed by M5s and Lega.

“I was a deep admirer of the Democratic Party and I am really disappointed. Some of Mattarella’s advisors should be put on trial, but there is no such institution,” he adds.

“The president has shown that he is not an impartial guarantor for our highest democratic institutions and can no longer represent us .”

“For this reason I asked the more than 160 mayors of the Lega in Lombardy to remove the photo of Mattarella from their offices.

For those who have not been paying attention, The Associated Press offers a quick 4 point explanation of Italy’s political pendemonium.

The Italian president’s decisions to quash a proposed populist coalition and ask economist Carlo Cottarelli to assemble a politically neutral government sets up the steps to an early election that could have Italy’s voters going to the polls for the second time this year.

Italy is no stranger to chaotic politics, government crises and revolving-door executives. But recent developments were remarkable even by Italian standards.

Here’s a look at how Italy got to this point, and what could come next:

1. THE RUN-UP

A national election held March 4 produced a hung parliament. The anti-immigrant, right-wing League and the anti-establishment 5-Star Movement eventually set aside populist rivalries to draft a coalition platform, which included plans for a flat-tax, rolling pack pension reforms and government subsidies to the unemployed.

On Sunday night, President Sergio Mattarella ended plans to form Western Europe’s first populist government by vetoing their euroskeptic pick for economy minister. The president argued that Italy could not be perceived as entertaining an exit from the euro.

When the League refused to budge on having Paolo Savona as economy minister, Mattarella stuck to his constitutional prerogative to veto Cabinet ministers, and the populists were foiled in their quest to govern Italy. Mattarella then asked Cottarelli to set up a non-political government to lead the country to another election.

2. COTTARELLI’S CABINET

Cottarelli, a former International Monetary Fund official, promised to quickly assemble a Cabinet. Once Mattarella approves the proposed ministers, the new government can be sworn in within a day, or even hours.

The premier-designate pledged that his “neutral” government would guarantee “prudent” management of Italy’s public debt, the second highest in Europe after Greece.

While vowing to press the European Union to respond to concerns generating discontent at home, Cottarelli stressed that Italy’s “role in the union is essential, as is our continued participation in the eurozone.”

3. PARLIAMENT’S ROLE

After being sworn in, every new government in Italy faces a mandatory confidence vote in each chamber of Parliament. The populists, who together account for a little more than half the seats in the legislature, have already given Cottarelli the thumbs down.

Should the government lose the confidence votes, Cottarelli said a new election would be scheduled as soon as “after August.” His government would then stay on in a caretaker role until the election.

Should his government pull off the confidence wins, Cottarelli said he would lead Italy through the end of the year to pass next year’s budget, after which the president would send Parliament packing and the election would be held in early 2019.

4. CAMPAIGN ALREADY OPEN

The 5-Stars and League responded to Mattarella’s veto with a chorus of criticism that Italy had ceded its sovereignty to the European Union and international financial markets.

Essentially, campaigning for the next election is up and running regardless of when the voting is done, promising a heavy dose of euro-skepticism and “Italians First” slogans, especially from the League.

Nicola Nobile, lead economist at Oxford Economics, predicted the “the next elections could become a de facto referendum on Italy remaining in the eurozone.”

In fact, you know it’s bad when Paul Krugman expresses his disappointment at the establishment’s actions…

Di Maio’s anti-establishment calls for a demonstration in Rome on June 2nd and demands for an election as soon as possible have sparked further downside in Italian capital markets…

Italian risk premia across the entire curve are exploding…

2Y Yields at the highest since May 2014; 10y yields climbed above 2.70% for the first time since June 2015… and the BTP-Bund 10y yield spread 231 bps, widest since 2013

Plunging bank stocks – with their massive sovereign debt holdings – into a bear market

And Italian redenomination risk soaring…

59-year old Rome resident, Nuzzi Luciana, summed up how many Italians feel…

“I think Italians had expressed themselves and what happened seems to be wanting to cancel the sign of this expression, so, even if I don’t really know this person (Cottarelli), we are left with a bitter taste here.”

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Turkish Lira Soars After Central Bank Changes Monetary Policy, But Reserves Emerge As Dire Concern

After days of getting pounded, today the Turkish Lira is the world’s best performing currency (even as the Brazilian real is getting crushed over the ongoing Trucker strike while the oil-worker union is about to stop work too) after overnight the Turkish central bank announced it was revamping its interest rate corridor, allowing it to tighten liquidity.

The reason for the surge in the Lira, which was up 2.5% to 4.5985 per dollar as of 10:30am EDT, snapping two days of declines amid a nauseating rollercoaster of moves over the past week…

… is that starting June 1, it would return to the structure of rates it was operating in 2016 with the one-week repurchase rate being the benchmark policy rate and the overnight borrowing and lending rates setting the bounds of the standard interest rate corridor. Meanwhile, the current main policy rate, the late liquidity rate, will instead become again a rate used in exceptional circumstances when individual banks face a temporary liquidity short fall. 

The TCMB set the one-week repo rate at 16.5% and therefore at the level of the current main policy rate, the late liquidity rate, which it hiked by 300bps last week. The overnight lending and borrowing rates will be set 150bp above and below the one week repo rate, in other words overnight lending rises from 9.25% to 18% while overnight borrowing jumps from 7.25% to 15%. In the statement, the TCMB also announced that the late liquidity rate will be set 150bp above the overnight lending rate, i.e. currently 19.5%.

As Bloomberg notes, “the absence of a single policy rate has long been criticized by investors who say it creates policy uncertainty.”

The use of a wide interest-rate corridor and multiple interest rates that began under Erdem Basci, Cetinkaya’s predecessor, allowed policy makers to adjust the cost of cash provided to commercial banks daily if they decided it was needed.

In kneejerk reaction to the implicit tightening and the attempt to stabilize the currency crisis, the yield on 10-year Turkish bonds plunged 53 basis points, the most since 2013, to 14.14%, while the Borsa Istanbul 100 Index climbed 3%, its biggest jump in more than a month.

Commenting on the move, SEB FX strategist Per Hammarlund said that “the selloff has tipped the balance in favor of increased central bank independence” adding that “a reversal of this stance and increasing political influence over monetary policy is unlikely in the coming months.”

In other words, Per is an optimist, and is convinced that Erdogan has learned his lesson to stay away from the central bank after last week’s crash. Spoiler alert: the fact that things are now somewhat stable will only embolden Erdogan to push even more to also dominate monetary policy.

That said, those who are happy at today’s developments will be able to indulge in even more Turkish exposure shortly: central bank governor Murat Cetinkaya and Deputy Prime Minister Mehmet Simsek are planning to meet with investors in London today (unclear why as it is a holiday) and tomorrow. Then again, even the most ardent Turkophiles may have had enough the “combination of a rising dollar, double-digit inflation, a widening budget deficit and Erdogan’s plan to have more say in monetary policy spurred a flight from lira assets” per Bloomberg.

Meanwhile, according to Hammerlund, “the real test of CBRT independence will come when the lira has strengthened, but inflation and inflation expectations remain high,” the FX strategist told Bloomberg. “For the time being though, the gains in the lira will be sustainable, putting 4.40 within striking distance against the dollar.”

Maybe not: according to GaveKal there is a far greater problem facing Turkey, namely the realization that its total reserves are woefully inadequate. Specifically, although total reserves at $135BN already fall well short of short term debt and current account obligations of $250BN, even this figure artificially inflated as roughly half of CenBank’s FX (ex-gold) consist of reserve positions posted in foreign currency by local banks at CBRT

In other words, as the inflationary feedback loop accelerates, and ends up draining even more reserves, Turkey will find itself in the untenable situation where only pushing its currency even weaker will stabilize the economy, which in turn will restart the currency crisis and potentially lead to far greater economic and political fallout.

In short: like it or not, Erdogan will soon be facing an acute social, political and economic crisis of his own inside Turkey.

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Caged Migrant Children Photo Goes Viral As Left Rages At Trump; Except It Happened Under Obama

A photograph of two migrant children sleeping in a cage at an ICE detention facility quickly went viral on Sunday after several prominent liberals tweeted it in a white-hot rage at President Trump’s immigration policy.

After a laundry list of journalists and public figures angrily tweeted the photo – including CNN’s Hadas Gold, NYT Mag’s editor-in-chief Jake Silverstein, Obama speechwriter Jon Favreau and former LA mayor Antonio Villaraigosa, they deleted their tweets in shame when it emerged that the photo was taken in 2014, under Obama

Indeed – nobody thought to check the date on the attached article, published in June of 2014. 

The award for the lamest excuse goes to CNN’s Hadas Gold, who wrote “Deleted previous tweet because gave impression of recent photos (they’re from 2014)”

Sorry Hadas. The internet never forgets: 

Jake Silverstein, editor-in-chief of NYT Magazine, threw his family under the bus for “distracting” him.

Obama speechwriter Jon Favreau cranked up the virtue-signaling up to eleven, tweeting “Look at these pictures. This is happening right now, and the only debate that matters is how we force our government to get these kids back to their families as fast as humanly possible.” 

Aaand it’s gone – but not forgotten: 

Then there’s Women’s March co-founder Linda Sarsour:

Former LA Mayor Antonio Villaraigosa also had egg on his face after tweeting “Speechless. This is not who we are as a nation.” 

As Caleb Hull – Senior Editor of The IJR and others pointed out, many of those who tweeted the picture on Sunday were awfully silent when it actually happened under Obama.

Of course, then there was the inevitable…

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Renewable Energy Mandates Are Making Poor People Poorer: New at Reason

Escalating electricity prices are regressive—poorer people pay a higher proportion of their incomes heating and cooling their houses than do richer people. Low-income folks also tend to live in draftier dwellings and retain older, less energy-efficient appliances and climate-control systems. Consequently, anything that raises the price of power will impose bigger relative costs on the poor.

As renewable energy mandates and rising “ecological” taxes have driven up electricity prices, an increase in energy poverty has become a problem in countries such as Germany and the United Kingdom, writes Reason‘s Ronald Bailey.

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The Long Nightmare of the Dreamers: New at Reason

A lot has happened in America since April 25, 2001—the 9/11 attacks, two major wars, the Great Recession, the first black president, the iPhone, a Cubs World Series title, and Donald Trump. That was the day the Dream Act, to protect young immigrants brought here illegally as children, was first introduced in Congress. Seventeen years later, observes Steve Chapman, they are still waiting for protection.

The fate of those immigrants, known as Dreamers, is stark evidence of the mind-numbing irrationality and dysfunction of our system of government. They did nothing wrong; they have contributed to American society; and they can be accommodated without harmful side effects.

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