Bernie Sanders’ War on the Poor: New at Reason

Bernie Sanders is waging a war on the poor. J.D. Tuccille explains:

As befits a socialist, Sanders intends to soak the rich, and indeed he tries to hit them harder than he slams the rest of the population. The Tax Policy Center finds that “All income groups would pay some additional tax, but most would come from high-income households.”

But researchers find that people who are more likely to succeed economically are also more likely to dodge taxes. And targeting them specifically increases the likelihood that they’ll hide their money from the authorities. No matter what he intends, Sanders’ proposed tax hike looks destined to fall most heavily on those who can least afford to pay the tab for his promised goodies.

View this article.

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Peter Pan(demonium) Erupts As BoJ “Disappoints” With No Change

USDJPY was in full chaos mode ahead of tonight's BOJ statement. With only 5 of 40 economists expecting further actions by Kuroda (and close Abe advisor Hamada suggesting "I think the BOJ wouldn't take further action right now… probably it will be a wise decision," The BoJ decide to stay put – holding rates flat at -10bps, holding QQE buying flat, and maintaining its ETF buying program at expected levels.. After 'mixed' results following its NIRP bomb in January, perhaps it is wise to give the 'economy' time to absorb the craziness as Japan's Peter-Pan-ic continues. The initial reaction was weaker Nikkei and stronger JPY.

USDJPY algos were utterly confused by every headline before the release:

 

And then the chaos erupted:

  • *BOJ MAINTAINS MONETARY BASE TARGET AT 80T YEN
  • *BOJ MAINTAINS POLICY BALANCE RATE AT MINUS 0.100%
  • *BOJ:FROM APRIL, ETFS TO INCREASE AT 3.3T YEN ANUALLY AS PLANNED
  • *BOJ SAYS IT NEEDS TO BE MINDFUL OF RISK TO PRICE TREND
  • *BOJ'S BOARD VOTES 7-2 TO KEEP NEGATIVE RATE UNCHANGED
  • *BOJ CITES RISKS TO DELAY IN CHANGING DEFLATIONARY MINDSET

So nothing for now – more is always possible – and the board is split. Of course while expectations were for no change (from economists) the market seems disappointed…

 

Since Kuroda unleashed NIRP, things have been mixed…

Stocks are 'just' unchanged, JPY is stronger…

 

But the good news is yields have collapsed…

 

Bear in mind, this is the central bank that conjured the concept of Peter Pan to represent its efforts:

I trust that many of you are familiar with the story of Peter Pan, in which it says, "the moment you doubt whether you can fly, you cease forever to be able to do it." Yes, what we need is a positive attitude and conviction.

In other words – you have to believe to receive – or the entire ponzi collapses.

Perhaps alternative forms of stimulation are required:

 

Charts: Bloomberg


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Having Killed Their Equity Market, China Unleashes “Tobin Tax” For FX Market

In September last year, Chinese regulators stepped on the throat of a 'fair' market in equity futures trading and for all intent and purpose killed the Chinese equity market. Tonight – after 2 days of Yuan weakness – having warned everyon from Soros to Kyle Bass that "betting against the Yuan can't possibly work," The PBOC just unleashed plans for so-called "Tobin Tax" on FX transactions (which implicitly taxes each transaction, reducing liquidity, raising margins and reducing leverage).

Deputy central bank governor Yi Gang raised the possibility of implementing a Tobin tax late last year in an article written for China Finance magazine, and now, as Bloomberg reports, it is on!

China’s central bank has drafted rules for a Tobin tax on currency trading, according to people with knowledge of the matter.

 

Rules are aimed at curbing speculative trading, say the people, who asked not to be identified as the discussions are private

 

An initial tax rate may be set at zero so as to allow authorities time to set up rules without immediately implementing the levy, people say

 

Tax is not designed to disrupt hedging and other FX transactions undertaken by companies, people say

 

Rules still need final approval by central government and it’s not clear how quickly they may be implemented, people say

 

People’s Bank of China doesn’t immediately respond to faxed request seeking comment

What happens next? Well that's easy… This!~

NOTE: Yes that is real… and Yes there is 'some' volume there

Good luck unwinding those levered shorts… and even if the hedgies are profitable, we suspect the tax will be tiered to enable the maximum pain to be extracted from so-called speculators.

 

Charts: Bloomberg


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America’s Gestapo: The FBI’s Reign Of Terror

Submitted by John Whitehead via The Rutherford Institute,

We want no Gestapo or secret police. The FBI is tending in that direction. They are dabbling in sex-life scandals and plain blackmail. J. Edgar Hoover would give his right eye to take over, and all congressmen and senators are afraid of him.”—President Harry S. Truman

Don’t Be a Puppet” is the message the FBI is sending young Americans.

As part of the government’s so-called ongoing war on terror, the nation’s de facto secret police force is now recruiting students and teachers to spy on each other and report anyone who appears to have the potential to be “anti-government” or “extremist.”

Using the terms “anti-government,” “extremist” and “terrorist” interchangeably, the government continues to add to its growing list of characteristics that could distinguish an individual as a potential domestic terrorist.

For instance, you might be a domestic terrorist in the eyes of the FBI (and its network of snitches) if you:

  • express libertarian philosophies (statements, bumper stickers)
  • exhibit Second Amendment-oriented views (NRA or gun club membership)
  • read survivalist literature, including apocalyptic fictional books
  • show signs of self-sufficiency (stockpiling food, ammo, hand tools, medical supplies)
  • fear an economic collapse
  • buy gold and barter items
  • subscribe to religious views concerning the book of Revelation
  • voice fears about Big Brother or big government
  • expound about constitutional rights and civil liberties
  • believe in a New World Order conspiracy

Despite its well-publicized efforts to train students, teachers, police officers, hairdressers, store clerks, etc., into government eyes and ears, the FBI isn’t relying on a nation of snitches to carry out its domestic spying.

There’s no need.

The nation’s largest law enforcement agency rivals the NSA in resources, technology, intelligence, and power. Yet while the NSA has repeatedly come under fire for its domestic spying programs, the FBI has continued to operate its subversive and clearly unconstitutional programs with little significant oversight or push-back from the public, Congress or the courts. Just recently, for example, a secret court gave the agency the green light to quietly change its privacy rules for accessing NSA data on Americans’ international communications.

Indeed, as I point out in my book Battlefield America: The War on the American People, the FBI has become the embodiment of how power, once acquired, can be easily corrupted and abused.

When and if a true history of the FBI is ever written, it will not only track the rise of the American police state but it will also chart the decline of freedom in America.

Owing largely to the influence and power of the FBI, the United States—once a nation that abided by the rule of law and held the government accountable for its actions—has steadily devolved into a police state where justice is one-sided, a corporate elite runs the show, representative government is a mockery, police are extensions of the military, surveillance is rampant, privacy is extinct, and the law is little more than a tool for the government to browbeat the people into compliance.

The FBI’s laundry list of crimes against the American people includes surveillance, disinformation, blackmail, entrapment, intimidation tactics, harassment and indoctrination, governmental overreach, abuse, misconduct, trespassing, enabling criminal activity, and damaging private property.

And that’s just based on what we know.

Whether the FBI is planting undercover agents in churches, synagogues and mosques; issuing fake emergency letters to gain access to Americans’ phone records; using intimidation tactics to silence Americans who are critical of the government; recruiting high school students to spy on and report fellow students who show signs of being future terrorists; or persuading impressionable individuals to plot acts of terror and then entrapping them, the overall impression of the nation’s secret police force is that of a well-dressed thug, flexing its muscles and doing the boss’ dirty work of ensuring compliance, keeping tabs on potential dissidents, and punishing those who dare to challenge the status quo.

The FBI was established in 1908 as a small task force assigned to deal with specific domestic crimes. Initially quite limited in its abilities to investigate so-called domestic crimes, the FBI has been transformed into a mammoth federal policing and surveillance agency. Unfortunately, whatever minimal restrictions kept the FBI’s surveillance activities within the bounds of the law all but disappeared in the wake of the 9/11 attacks. The USA Patriot Act gave the FBI and other intelligence agencies carte blanche authority in investigating Americans suspected of being anti-government.

As the FBI’s powers have grown, its abuses have mounted.

The FBI continues to monitor Americans engaged in lawful First Amendment activities.

 

COINTELPRO, the FBI program created to “disrupt, misdirect, discredit, and neutralize” groups and individuals the government considers politically objectionable, was aimed not so much at the criminal element but at those who challenged the status quo—namely, those expressing anti-government sentiments such as Martin Luther King Jr. and John Lennon. It continues to this day, albeit in other guises.

 

The FBI has become a master in the art of entrapment.

 

In the wake of the 9/11 terrorist attacks the FBI has not only targeted vulnerable individuals but has also lured them into fake terror plots while actually equipping them with the organization, money, weapons and motivation to carry out the plots—entrapment—and then jailing them for their so-called terrorist plotting. This is what the FBI characterizes as “forward leaning—preventative—prosecutions.”

 

FBI agents are among the nation’s most notorious lawbreakers.

 

In addition to creating certain crimes in order to then “solve” them, the FBI also gives certain informants permission to break the law, “including everything from buying and selling illegal drugs to bribing government officials and plotting robberies,” in exchange for their cooperation on other fronts. USA Today estimates that agents have authorized criminals to engage in as many as 15 crimes a day. Some of these informants are getting paid astronomical sums: one particularly unsavory fellow, later arrested for attempting to run over a police officer, was actually paid $85,000 for his help laying the trap for an entrapment scheme.

 

The FBI’s powers, expanded after 9/11, have given its agents carte blanche access to Americans’ most personal information.

 

The agency’s National Security Letters, one of the many illicit powers authorized by the USA Patriot Act, allows the FBI to secretly demand that banks, phone companies, and other businesses provide them with customer information and not disclose the demands. An internal audit of the agency found that the FBI practice of issuing tens of thousands of NSLs every year for sensitive information such as phone and financial records, often in non-emergency cases, is riddled with widespread violations.

 

The FBI’s spying capabilities are on a par with the NSA.

 

The FBI’s surveillance technology boasts an invasive collection of spy tools ranging from Stingray devices that can track the location of cell phones to Triggerfish devices which allow agents to eavesdrop on phone calls.  In one case, the FBI actually managed to remotely reprogram a “suspect’s” wireless internet card so that it would send “real-time cell-site location data to Verizon, which forwarded the data to the FBI.”

 

The FBI’s hacking powers have gotten downright devious.

 

FBI agents not only have the ability to hack into any computer, anywhere in the world, but they can also control that computer and all its stored information, download its digital contents, switch its camera or microphone on or off and even control other computers in its network. Given the breadth of the agency’s powers, the showdown between Apple and the FBI over customer privacy appears to be more spectacle than substance.

 

James Comey, current director of the FBI, knows enough to say all the right things about the need to abide by the Constitution, all the while his agency routinely discards it. Comey argues that the government’s powers shouldn’t be limited, especially when it comes to carrying out surveillance on American citizens. Comey continues to lobby Congress and the White House to force technology companies such as Apple and Google to keep providing the government with backdoor access to Americans’ cell phones.

 

The FBI’s reach is more invasive than ever.

 

This is largely due to the agency’s nearly unlimited resources (its minimum budget alone in fiscal year 2015 was $8.3 billion), the government's vast arsenal of technology, the interconnectedness of government intelligence agencies, and information sharing through fusion centers—data collecting intelligence agencies spread throughout the country that constantly monitor communications (including those of American citizens), everything from internet activity and web searches to text messages, phone calls and emails.

 

Today, the FBI employs more than 35,000 individuals and operates more than 56 field offices in major cities across the U.S., as well as 400 resident agencies in smaller towns, and more than 50 international offices. In addition to their “data campus,” which houses more than 96 million sets of fingerprints from across the United States and elsewhere, the FBI is also, according to The Washington Post, “building a vast repository controlled by people who work in a top-secret vault on the fourth floor of the J. Edgar Hoover FBI Building in Washington. This one stores the profiles of tens of thousands of Americans and legal residents who are not accused of any crime. What they have done is appear to be acting suspiciously to a town sheriff, a traffic cop or even a neighbor.”

 

If there’s one word to describe the FBI’s covert tactics, it’s creepy.

 

The agency’s biometric database has grown to massive proportions, the largest in the world, encompassing everything from fingerprints, palm, face and iris scans to DNA, and is being increasingly shared between federal, state and local law enforcement agencies in an effort to target potential criminals long before they ever commit a crime.

 

This is what’s known as pre-crime.

If it were just about fighting the “bad guys,” that would be one thing. But as countless documents make clear, the FBI has no qualms about using its extensive powers in order to blackmail politicians, spy on celebrities and high-ranking government officials, and intimidate dissidents of all stripes.

It’s an old tactic, used effectively by former authoritarian regimes.

In fact, as historian Robert Gellately documents, the Nazi police state was repeatedly touted as a model for other nations to follow, so much so that Hoover actually sent one of his right-hand men, Edmund Patrick Coffey, to Berlin in January 1938 at the invitation of Germany’s secret police. As Gellately noted, “[A]fter five years of Hitler’s dictatorship, the Nazi police had won the FBI’s seal of approval.”

Indeed, so impressed was the FBI with the Nazi order that, as the New York Times revealed, in the decades after World War II, the FBI, along with other government agencies, aggressively recruited at least a thousand Nazis, including some of Hitler’s highest henchmen, brought them to America, hired them on as spies and informants, and then carried out a massive cover-up campaign to ensure that their true identities and ties to Hitler’s holocaust machine would remain unknown. Moreover, anyone who dared to blow the whistle on the FBI’s illicit Nazi ties found himself spied upon, intimidated, harassed and labeled a threat to national security.

So not only have American taxpayers been paying to keep ex-Nazis on the government payroll for decades but we’ve been subjected to the very same tactics used by the Third Reich: surveillance, militarized police, overcriminalization, and a government mindset that views itself as operating outside the bounds of the law.

This is how freedom falls, and tyrants come to power.

The similarities between the American police state and past totalitarian regimes such as Nazi Germany grow more pronounced with each passing day.

Secret police. Secret courts. Secret government agencies. Surveillance. Intimidation. Harassment. Torture. Brutality. Widespread corruption. Entrapment. Indoctrination. These are the hallmarks of every authoritarian regime from the Roman Empire to modern-day America.

Yet it’s the secret police—tasked with silencing dissidents, ensuring compliance, and maintaining a climate of fear—who sound the death knell for freedom in every age.


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Central Banks – The New Nukes?

You know something is strange when "the riskiest" country in the world is the nation whose central bank everyone is relying on to 'save the world' and "the safest" stock market in the world is from a nation whose neighbor is actively test-firing nuclear missiles? It appears activist central banks – following Draghi's "kitchen sink" – have become the new normal's 'nukes'.

As Goldman notes,  Brazil & Japan vol is highest and Korea lowest on %-ile basis

Mises' Ryan McMaken warns,

The obsession with deflation among central banks is leading them to try the same thing over and over again with nothing to show for it, but continued economic stagnation.

 

On the other hand, an interesting thing is happening. As the ECB and the Bank of Japan have loosened the easy-money spigot even more, their respective currencies have actually gained on other currencies. The reasoning is apparently that the latest moves represent the bottom to how low the central banks are willing to go. That is, investors are betting that after this, the central banks will start to tighten.

 

Maybe. But we’ll see. Right now, we’re only talking about “bazookas” and “kitchen sinks.” We haven’t even started talking about “heavy artillery” or “going nuclear.”

 

It ain’t over ’til it’s over, and as George Magnus wrote today, “helicopter money” may be next: “If today’s kitchen sink episode ends with a whimper, as seems likely, and governments continue to stand aside from the economic fray, Europeans may demand still more of their central bank.”

How does this end well?


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343,916 Reasons Why The Fed Is Anything But Independent

Just a week ago we were surprised to find that current Federal Reserve Governor Lael Brainard gave $750 in three contributions to Clinton’s campaign between November and January, according to Federal Election Commission records.

And while Fed officials sometimes identify with either major political party, as Bloomberg correctly notes, "donations to a presidential candidate by a senior policy maker are unusual, particularly at a time when the central bank is trying to guard its independence from politics. The Fed’s authority has been criticized during the campaign, and both Democratic and Republican lawmakers have questioned decisions about regulation and monetary policy."

 

And here is the Republican soundbite for when the Trump campaign shifts to important things like the Fed:

At a time when Federal Reserve officials are making the case that monetary policy needs to be non-partisan and independent, a sitting governor has given money to Hillary Clinton.

 

Hardly a glowing endorsement for the apoliticalness, or for that matter intelligence, of the Fed and as Bloomberg's Craig Torres writes, Brainard’s donations "could provide fuel for Republican narratives about the proximity of the Fed and the board to the Obama administration," said Sarah Binder, a senior fellow at the Brookings Institution who is writing a book about politics and the central bank.

But it is not a "one-off" – very far from it…

Since the 2004 Presidential election, Bloomberg reports that individuals listing the Fed as their employer have made legally capped donations totaling $436,555 to federal candidates, parties and partisan political action committees. Of that, $343,916, or 79 percent, went to Democrats.

And Zero went to Donald Trump…

 

The partisan preference has grown stronger since the 2012 presidential election. Through January, Fed employees in this cycle have contributed $54,235, with 88 percent going to Democrats.

The falling Republican support comes at a time when the central bank is trying to protect its independence from critics in Congress and the top Republican candidates are calling for more scrutiny of the institution.

 

Trump, Rubio and Cruz have all backed legislation that would subject monetary-policy decisions to increased congressional scrutiny. Fed officials have said that would politicize deliberations that should focus purely on economics.

 

“I always felt that sustaining the institution against the political arena was the important thing,” said Robert Smith, who retired in 2011 after working for 43 years at the Dallas Fed.

Another former Fed employee mostly agreed, but added that political outlook can sway economic research.

“If a person leans to being on the liberal side of the political spectrum they’re more likely to favor intervention,” said Daniel Thornton, a former economist at the St. Louis Fed and now an adjunct scholar at the conservative Cato Institute. “You’d like to say it’s all based on facts, but when you talk about macro-economics, the facts are pretty fungible.”

An Un-independent Fed and "fungible facts" – just what we need to centrally-plan an economy!


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The Liquidity Endgame Begins: Whiting’s Revolver Cut By $1.2 Billion As Banks Start Slashing Credit Lines

Earlier today we reminded readers about the circular (and why note fraudulent conveyance) scheme hatched by JPMorgan to reduce its secured loan exposure to Weatherford, when just two weeks ago none other than JPM underwrote an WFT equity offering in which it sold equity in the company, and which proceeds were promptly used by the company to repay the JPMorgan revolver.

We then showed that it wasn’t just Weatherford: most of the “uses of funds” from the recent record surge in oil and gas equity offerings, have been used to repay the secured debt/revolver facilities, thereby eliminating funded and unfunded balance sheet exposure of major US banks.

But while lender banks are all too eager to take advantage of the brief surge in equity prices just so they can “help” their clients dilute their shareholder base so to repay the very same lender banks, they know quite well that the equity offering window is rapidly closing; in fact it will slam shut as soon as the price of oil resumes its downward trajectory.

That does not mean they are out of options to reduce their exposure to US shale, however. Quite the contrary, and in fact the “exposure reduction” is about to begin in earnest. We hinted at what it would look like in early January when we reported that already some 25 of the most distressed shale companies have seen their revolving bases slashed by as much as 50%.

 

These were just the beginning. As Bloomberg wrote earlier, U.S. exploration and production companies must brace for further cuts to their borrowing-base credit lines this spring, as part of the spring 2016 borrowing base redeterminations.

According to Bloomberg, Royal Bank of Canada estimated that cuts to U.S. borrowing-base credit lines last fall averaged only 6%, while – ironically enough – JPMorgan predicts that the average cut may reach 20% over the next several months. JPMorgan expects some credit lines to be chopped by as much as 50%.

What is ironic is that the credit lines with the biggest cuts will be those issued by JPMorgan.

At least 10 E&P companies had fully utilized their credit lines by the end of February, either because their capacities were cut or because they borrowed the remaining amount available to build liquidity. Bloomberg adds that companies nearing current borrowing base limits may be most affected by any further reductions. Those include Vanguard Natural Resources (95 percent), Legacy Resources and Atlas Resource Partners (both at 85 percent), Memorial Production and Breitburn Energy.

“The cuts we saw in 2015 were less than what the market expected, which may imply that the banks were trying to give these companies time to find other ways to address their balance sheet problems,” Bloomberg analyst Spencer Cutter said in a telephone interview on March 12.

One company that expects significant borrowing base cuts is Memorial Production whose treasurer, Martyn Willsher, said in an e-mail on March 12 that his company expects its borrowing base to be reduced. Memorial is generating $70 million to $80 million of positive cash flow this year and has “other liquidity measures that will ensure we do not have to change our strategy due to a lack of liquidity,” Willsher said.

Despite its recent rebound above $35 a barrel, oil is still below where it was when borrowing bases were reset in the fall. It has averaged $32 a barrel in 2016, versus $45 in September.

When oil fell below $30 a barrel in January, “that fundamentally altered the mindset for everyone in the industry, including the banks,” Cutter said.

Furthermore, with banks facing increasing scrutiny about their exposure to the industry, “they may not be as patient this time,” he said. After all, it was the Dallas Fed which made it very clear to banks to do everything in their power to reduce their exposure to energy companies without unleashing a default tsunami in the process. Most banks are confident they have held up to their end of the bargain, and now the revolver slashing will begin.

Nowhere is this reduction in bank exposure more evident than in shale giant Whiting Petroleum. Jim Volker, the CEO of Whiting, which recently announced a halt to all fracking in the Bakken shale, said last Thursday that he expects his company’s credit line to be cut by more than $1 billion in an early May loan review, in a move which Reuters dubbed “the latest industry fallout from low oil prices crimping margins and fueling massive spending cuts.”

For those unfamiliar, the semi-annual review of credit access for small- and medium-sized oil companies is critical in determining not only the market value of their working capital but more importantly their accessible liquidity as a result; because loans tends to be backed by the value of oil reserves, falling crude prices erode the underlying collateral and force a redetermination.

Whiting is the canary in the coalmine: the company’s massive credit line cut  would prove to be one of the biggest of this price downturn and be larger than executives themselves expected as recently as last month.

Whiting, the largest oil producer in North Dakota’s Bakken shale formation, had $2.7 billion left on a loan revolver at the end of 2015. Its CEO Volcker said on Thursday he expects Whiting will have “at least $1.5 billion” left on the loan after the redetermination, implying a cut of $1.2 billion.

What is most troubling is that as recently as late February, or just a few weeks ago, Volker said he expected a cut of no more than 30 percent, which would have been roughly $800 million.

What this suggests is that even as the price of oil has surged since the February lows, the banks have suddenly gotten far more aggressive about trimming their unfunded (and funded in the case of Weatherford) exposure.

To be sure, Whiting is trying to put a favorable spin on it: “I’m sure we’ll still have lots of liquidity after our next borrowing base redetermination,” Volker said at the DUG Rockies conference in Denver. In Whiting’s case, its strong position in North Dakota as well as Colorado, combined with hedges for nearly half of its 2016 production, likely worked in its favor as it met with lenders earlier this month.

As we reported previously, aware that it would lose billions in liquidity, Whiting entered cash hibernation mode: last month the company slashed its 2016 capital budget by 80 percent and suspended fracking; as part of that, Whiting plans to build a backlog of 168 wells this year that are drilled but not brought online, a step should help Whiting save $530 million this year, Volker said.

“Delaying these completions will afford us optionality to resume growth as oil prices begin to rebound,” Volker said.

Unfortunately, if only judging by the lenders’ sudden hardball, the price of oil is not going to rebound; quite the contrary and banks are taking every opportunity of the current bounce to reduce or outright eliminate all secured exposure.

And while Whiting may be big enough to get funding even when the next leg lower in crude hits, others won’t be nearly as lucky and in a few short weeks, once redetermination season is over, we will have the full list of companies whose liquidity is collapsing alongside the plunging price of oil in what will be the most toxic feedback loop of 2016.

* * *

But what is most ironic in this whole situation is who is on the other side of Whiting revolver cut. The bank which is rapidly slashing its oil and gas exposure, first to Weatherford and now to Whiting is shown below.


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Licensing Tour Guides in Charleston: New at Reason

You can’t practice history on the streets of Charleston without a license. Eric Boehm writes:

Anyone who wants to talk about Charleston’s history must first obtain a license from the city. Getting that license means passing a 200-question written exam—a passing grade is 80 percent or higher—and then passing an oral exam conducted by taxpayer-funded city officials.

To pass both exams, would-be tour guides have to memorize pretty much the entire history of Charleston.

That’s bad news for people like Mike Warfield, who works as a volunteer at one of Charleston’s history museums. He planned to give tours of the city’s historic pubs and haunted spots—hey, that sounds like the kind of tour I’d want to take—but was told he could do it only if he could pass the city’s comprehensive history exam.

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Video Shows Fort Worth Police Officer Pepper-Spraying Passing Bikers

A Fort Worth Police Department (FWPD) officer, identified only as W. Figueroa, has been moved from patrol to administrative duties after video surfaced of him pepper-spraying passing motorcyclists from the side of a highway.

Figueroa, a six-year veteran on the force, reportedly documented his use of spray in a departmental report this past Sunday afternoon after pulling over a red pickup truck for “blocking traffic to rocord [sic] motorcycles driving recklessly.” The 40-second video, uploaded first to Facebook and then Youtube, shows Figueroa emerging from his cruiser holding a small black object in his hand.

During a slow-motion replay edit created by Fort Worth PD Officer Pepper Spraying BikersChase Stone, the video’s uploader and one of the passing bikers, reddish spray can be clearly seen coming out of the object in Figueroa’s hand. The FWPD told reporters that they will be reviewing both Figueroa’s body cam and dash cam as they conduct an investigation into the incident. 

It should be noted that Stone’s Youtube account contains video of he and others performing bike stunts on highways and other public roads. NBCDFW.com reported that “several motorists called 911 Sunday afternoon to report motorcyclists blocking traffic, racing and weaving through cars along Highway 287.”  A number of people have come to Figueroa’s defense on social media, pointing out that every state has a “Move Over Law,” requiring motorists to move one lane to the left of a police officer engaged in a traffic stop, or at least significantly reduce their speed.

Whatever reason Figueroa had for deploying the noxious gas, discourteous bikers don’t deserve a face full of Mace, and spraying a blinding agent into the eyes of people speeding down a crowded highway on two wheels can’t be possibly be considered in the interests of public safety. 

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