NYC Doubles Down on Petty Law Enforcement: Respecting Authority is What Democracy Is About

but he has such a beautiful family!As New York City continues to
produce bad news
it’s becoming harder and harder to feel sympathetic for the
residents subject to the abuses of its government. New York City’s
mayor and police commissioner have announced that, despite the
death of a man taken into police custody
because
of suspicion he was selling untaxed cigarettes, the
city’s police force (the world’s seventh largest army!) won’t
re-examine how aggressively they enforce minor legal infractions.

Via Gothamist
:

According to Mayor [Bill] de Blasio and Police Commissioner
[Bill] Bratton, the NYPD will continue to strictly enforce laws
against loosie [loose cigarettes] peddlers and subway dancers. “I
can understand why any New Yorker may say, that’s not such a big
deal,” de Blasio said. “But a violation of the law is a violation
of the law.”

Commissioner Bratton added, “It’s important that when an officer
does approach you to correct your behavior, that you respect them.
That’s what democracy’s all about.”

Keep voting for progressives if you want, New York City, but
don’t expect things to change. New York residents weary of their
overbearing government and its abuses should heed the warning of
Malcolm X, who made a home in New York City in the later part of
his life: “if you form the habit of taking what someone else says
about a thing without checking it out for yourself, you’ll find
that other people will have you hating your own friends and loving
your enemies.” The disaster that Bill De Blasio is showing himself
to be so soon after a rather decisive (if low voter turnout)
victory makes Malcolm X’s warning that much more relevant. It
wasn’t the Tea Party that killed Eric Garner and it wasn’t the Tea
Party that supported the kind of laws that lead to confrontations
like the one police had with Garner in the first place either.

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NSA Surveillance Causes Journalists to Have to Act Like Drug Dealers to Protect Sources

I spy, with my little Internet- and phone-trawling technological Panopticon ...Fake information trails and
burner phones. If you’re wondering how journalists who cover
sensitive federal government issues have adapted to the discovery
that there’s even more snooping going on than all but the most
paranoid of them thought, it’s a complicated mess. Human Rights
Watch and the American Civil Liberties Union interviewed nearly
four dozen journalists about how their jobs have changed in the
wake of both Edward Snowden’s leaks and the propensity for
President Barack Obama’s administration to prosecute leakers (or
those who leak things the government doesn’t want leaked, anyway).
It’s probably not news to anybody at this point that journalists
have seen a chilling effect from their sources as a result of the
government’s behavior. But it is interesting to note how
far
it has gone for them:

While sources’ employers sometimes have legitimate reasons for
discouraging conversations about certain matters with the press,
the stakes and the consequences have increased substantially in
recent years, making conversations about declassified or innocuous
subjects not worth the risk. One journalist described a source who
was eventually fired when his or her employer found signs of the
source’s initial contact with journalists a year earlier, even
though the source had not leaked classified information.

At the same time, the fact that senior government officials
themselves routinely appear to authorize “leaks” of classified
information has bred cynicism about the government’s claims that
these prosecutions are merely about enforcing the law. “Of course,
leaks that help the government are sanctioned,” observed Brian
Ross, chief investigative correspondent for ABC News. Bart Gellman,
senior fellow at The Century Foundation, and the winner of multiple
Pulitzer Prizes, argued that official, sanctioned leaks reveal much
more classified information than unofficial ones.

Yet, beyond the leak investigations and administrative efforts
to prevent leaks, many journalists said that the government’s
increased capacity to engage in surveillance—and the knowledge that
it is doing so on an unprecedented scale—has made their concerns
about how to protect sources much more acute and real.

In fact, some believed that surveillance may be a direct cause
of the spike in leak investigations. “It used to be that leak
investigations didn’t get far because it was too hard to uncover
the source, but with digital tools it’s just much easier, and
sources know that.” observed Bart Gellman. Peter Maass, a senior
writer at The Intercept, concurred: “Leak investigations
are a lot easier because you leave a data trail calling, swiping in
and out of buildings, [and] walking down a street with cameras.
It’s a lot easier for people to know where you’re going and how
long you’re there.” Charlie Savage raised a similar point:
“[E]lectronic trails mak[e] it easier to figure out who’s talking
to reporters. That has made it realistic [to investigate leaks] in
a way that it wasn’t before.” Peter Finn, the National Security
Editor at the Washington Post, expressed concern that “the
government’s ability to find the source will only get better.”

So journalists have to resort to all sorts of tricks and
countermeasures to try to make sure their sources are protected,
which may sound like some sexy All the Presidents’ Men
stuff, but in actuality is probably very burdensome to the task of
actually getting information:

In addition to seeking security in a combination of more and
less advanced technology, a number of journalists have adapted
their use of conventional tools to make it more difficult to track
down their sources through surveillance. One approach involves
deliberately creating a misleading electronic trail. For example,
one journalist described a colleague who calls a large number of
possible sources before a story comes out in order to obscure the
identities of those who actually provided information. Another
reported booking “fake” travel plans for places he never intended
to visit.

Journalists and sources have also made creative use of common
technologies to hide their interactions. The most common such
approach is to use “burner” phones—cell phones with limited
identifiable links to the owner, and which one disposes of after a
matter of days or weeks. A significant number of journalists
described elaborate processes by which they managed to obtain such
phones, limit their traceability, and make them operable for a
short period.

Others described a variety of similar techniques for sharing
information with sources electronically while minimizing the trace
left behind. Some detailed the inventive use of email accounts or
phones, as well as tricks for hiding purchase records related to
reporting activity.

Journalists also have made efforts to better protect their
information. Due to the traceability of GPS information from cell
phones, and the possibility of turning cell phones into listening
devices (even if they are off), several journalists reported
turning off cell phones or taking out their phone batteries before
speaking with people in person, or even leaving phones behind
altogether when visiting sources. One journalist reported keeping
his files “on a flash drive in [his] pocket all the time,” and
taking additional precautions with his notes—such as writing them
by hand and encoding them. A couple of others have employed codes
for discussing stories or sources, whether within an office or
otherwise.

While the part of the report that discusses the chilling
behavior of surveillance on the work of journalists is getting most
of the attention, the report also discusses the potential impact of
government snooping on lawyers, too, as ample evidence shows the
feds have been gaining access to privileged communication between
lawyers and clients. When Glenn Greenwald
finally revealed some names
of actual individuals targeted for
surveillance by the government—though they were not suspected of
any crimes themselves—two were representing foreign government or
organizations that were suspected of terrorist ties. Lawyers are
left not knowing how safe it is to speaking openly with their
clients:

As a result of recent surveillance revelations, a couple of
attorneys reported feeling duty-bound to warn their clients that
information related to their case may not remain private. Linda
Moreno noted, “Given the now publicly admitted revelations that
there is no privacy in communications, including those between
attorneys and their clients, I feel ethically obligated to tell all
clients that I can’t guarantee anything [they] say is privileged …
or will remain confidential.” Similarly, Nancy Hollander, who
focuses on criminal defense including in national security
contexts, has begun including a bolded auto-signature in her
work-related emails with the same effect: “Warning: Based on recent
news reports, it is possible that the NSA is monitoring this
communication.” Overall, however, without a clear sense of the
boundaries of US government surveillance, and the effectiveness of
various countermeasures, it is difficult to discern what steps
lawyers might be obliged to take to protect their information.

Gillers cautioned lawyers about the use of phone, email, and
text communications, noting that when it comes to electronic data,
“it doesn’t matter what the vehicle is.” An experienced criminal
defense attorney observed similarly that, based on what we knew
about US government surveillance programs before the Snowden leaks,
overseas travel (instead of international electronic communication)
was likely ethically required for attorneys handling certain types
of cases. Now, he argued, “Lawyers have to assume any electronic
communication they have is going to be intercepted.” Although the
risk that poses will vary with the nature of the communications,
and might be mitigated in some instances by security measures,
lawyers need to treat the likely collection of electronic
communications as a “fact of life.”

In its conclusion, the report calls for reforms, such as an end
to the overclassification of government documents, additional
disclosure about the nature of the surveillance programs, and
enhanced protections for whistleblowers. Read the entire report
here.

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Jury Frees Man Charged With Shooting at Cops Who Raided Wrong House

Brandon WatsonCops raid the
wrong house, shots are fired…You know where this is going, right?
It’s another innocent person plugged by police officers who can’t
read street addresses, or another sleepy homeowner charged with
murder for shooting an intruder who happened to be a government
employee with a bad sense of direction.

But this story has a happy-ish ending. Nobody was injured. And
the man who fired at the late-night wrong-way raiders was
ultimately cleared by jurors who thought the police behaved
poorly.

From
KHON2
:

Brandon remembers, “We ran upstairs very quickly … she saw guys
in all black from right here in this window looking down.” Watson
said he couldn’t immediately find his cell phone to call 911 so he
ran downstairs with his firearm and stood at the foot of the
stairs, shielded by a wall.

“I announced myself, ‘Who is that? Who is that? I have a gun.’
And as soon as I said that, two red laser beams were on my chest,”
Watson said. “so I looked at the red laser beams on my chest, and I
fired a warning shot.”

A single shot through a window, and then Watson ran to get help
from his neighbor across the street, a Virginia State Police
deputy.

As I came out of the house … they said, ‘stop,’ and I said,
‘Who?’ They then said, ‘Who just fired the shot out the back
window?’ I said I did … and I was holding a gun, and they said,
‘put down the gun.’”

Watson dropped his handgun and said he received shocking
news.

“They said, ‘we just got news you shot at an officer.’ I said,
‘An officer? Nobody came to my door. What do you mean an officer? I
didn’t know there were any officers in my backyard,’” he told
WAVY.com.

Then he learned the dark figures in his backyard were Portsmouth
police officers who had not announced themselves.

Watson was charged with misdemeanor reckless handling of a
firearm for the shot he fired, after a warning, at assailants who
hadn’t identified themselves.

His first trial, before a judge ended in a guilty verdict. He
appealed.

The second trial ended in a mistrial.

The third trial took place before a jury, which found Brandon
Watson not guilty.

Jurors believed Watson showed restraint by firing one shot, and
that police had no business raiding the wrong address (they counted
down houses along the block rather than check number plates). They
also thought the laser sight indicators on Watson’s chest proved
the cops were full of shit when they claimed to have their weapons
aimed at the ground.

“The police kept saying they had their weapons pointed at the
ground at all times. At the same time, they said they were using
their TAC lights on the gun to illuminate whatever they were
looking at,” Barnes said. “You can’t be doing both at the same
time, that’s contradictory.”

WAVY asked Chief Hargis if a light could have gone into the
window.

“Yes, but I don’t think it was there for any long period of
time,” he said.

We asked him if the red lights appearing on Watson’s chest were
possible.

“It is possible, sure,” he replied.

The incident could have ended a lot worse. Cory Maye, whose case
was highlighted
by Radley Balko in Reason, spent 10 years in prison for
killing a police officer during a wrong house raid. Kathryn
Johnston
was among those killed for trying to defend their
homes.

Watson essentially lost a year of his life. But he’s free. When
cops screw up, it’s rare for the subject of the screwup to come out
the other end so relatively unscathed.

Maybe public attitudes toward police raids are changing. Earlier
this year, a Texas grand jury
declined to indict Henry McGee
who killed a police officer
during a raid actually targeted at his house.

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Marc Faber Responds To CNBC Mockery, Asks “How Has CNBC’s Portfolio Done Since 1999?”

Having provided his clarifying perspective on why the markets are extremely fragile and due for a 20-30% correction, Marc Faber was assaulted by CNBC’s Scott Wapner reading off a litany of recent calls that have not worked out as planned. His response was notable: “I started to work in 1970, and over that career, somehow, somewhere, I must have made some right calls; otherwise I wouldn’t be in business.” What CNBC then edited out of the transcript was Faber pointing out his 22% annualized return in his publicly-viewable funds since then and asking – sounding somewhat frustrated at the anchor’s mockery (and background snickers) – “I wonder what the CNBC portfolio would look like since 1999?” The response: silence.

 

Here are some recent thought summing up his view of the Fed:

It’s pointless to talk to Fed members about economics because they are academics who believe in money printing. Some of them believe they didn’t print enough, and so with these kinds of people, it is like running to the pope.

 

What do you want to tell them? It’s pointless to spend time with these people trying to convince them that their monetary policies have been very destructive.

 

They bailed out Mexico in 1994, and there was an EM bubble until 1997. They then bailed out LTCM (Long-Term Capital Management), which gave a signal to leverage up…then they had the Nasdaq bubble, then they printed again and had the housing bubble.

 

David Hume and Irving Fisher said bubbles are very destructive to the majority of market participants. They lose money, the minority makes money. The Fed doesn’t see it that way so it is pointless to talk to these people.

Faber on the health of the market, money-printing, and his recommendations…

At around 1:00, the tension rises… (before the hit phrase that incriminates CNBC in the bubble blowing falls to the cutting room floor).

*  *  *
It doesn’t take long to remember various CNBC calls from the past that have not worked out too well … or the treatment of Peter Schiff before the last crash to feel a sense of permabullish support for whatever cheerleader is advertising next.




via Zero Hedge http://ift.tt/1znMwyX Tyler Durden

Marc Faber Responds To CNBC Mockery, Asks "How Has CNBC's Portfolio Done Since 1999?"

Having provided his clarifying perspective on why the markets are extremely fragile and due for a 20-30% correction, Marc Faber was assaulted by CNBC’s Scott Wapner reading off a litany of recent calls that have not worked out as planned. His response was notable: “I started to work in 1970, and over that career, somehow, somewhere, I must have made some right calls; otherwise I wouldn’t be in business.” What CNBC then edited out of the transcript was Faber pointing out his 22% annualized return in his publicly-viewable funds since then and asking – sounding somewhat frustrated at the anchor’s mockery (and background snickers) – “I wonder what the CNBC portfolio would look like since 1999?” The response: silence.

 

Here are some recent thought summing up his view of the Fed:

It’s pointless to talk to Fed members about economics because they are academics who believe in money printing. Some of them believe they didn’t print enough, and so with these kinds of people, it is like running to the pope.

 

What do you want to tell them? It’s pointless to spend time with these people trying to convince them that their monetary policies have been very destructive.

 

They bailed out Mexico in 1994, and there was an EM bubble until 1997. They then bailed out LTCM (Long-Term Capital Management), which gave a signal to leverage up…then they had the Nasdaq bubble, then they printed again and had the housing bubble.

 

David Hume and Irving Fisher said bubbles are very destructive to the majority of market participants. They lose money, the minority makes money. The Fed doesn’t see it that way so it is pointless to talk to these people.

Faber on the health of the market, money-printing, and his recommendations…

At around 1:00, the tension rises… (before the hit phrase that incriminates CNBC in the bubble blowing falls to the cutting room floor).

*  *  *
It doesn’t take long to remember various CNBC calls from the past that have not worked out too well … or the treatment of Peter Schiff before the last crash to feel a sense of permabullish support for whatever cheerleader is advertising next.




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Why Herbalife Is Crashing After Hours In Two Charts

While one can relish the recent record surge in Herbalife stock on the day in which Bill Ackman was supposed to bury the stock, instead sending it up by the highest intraday gain in history, the reality is that Herbalife – just as we warned last quarter – continues to send out flashing red alerts, and nowhere more so than in the numbers which were just reported.

No, it wasn’t the Q2 revenue or the EPS which mattered: those are so doctored they are completely irrelevant to the cash burn/stock buyback story at hand story. The only thing that matters is what we noted last quarter: how much cash does the company generate organically, how much it generates through debt issuance, and how much is spent on stock buybacks.

The answers:

  • in Q2 HLF reported $157 million in cash from operations. This was the lowest cash creation by Herbalife since Q2 2013, and is the third consecutive quarter of decline.
  • In Q2 HLF did not raise any new debt but it more than made up for that with the $1.15 billion convertible offering in Q1, virtually all of whose net proceeds were used to buyback stock.
  • In Q2 HLF repurchased $581 million in stock. This brings the total amount repurchased in 2014 to a record $1.3 billion (compared to a paltry $166 million in the 2013 comparable period). And the year is only half way done!

And here are the two most important charts which explain why the stock is crashing over 11% after hours. 

 

First, Herbalife cash from operations and stock buybacks. The party may be ending:

 

And the real reason why the party may be ending is that HFL’s net debt has exploded in the past year by over $1 billion. In other words, all the company’s cash creation and all of its debt issuance in 2014 has gone exclusively toward buying back its stock.

At this rate quite soon HLF will have no additional debt capacity for futher buybacks. Worse, even if its were to use all its organic cash to repurchase stock it will be nowhere near enough to match what buybacks have been in the past year, which some may argue is the only reason why the stock has stay afloat at its current levels.

So, is Ackman going to have the last laugh? Or will Ichan end up LBOing the company – even if at a huge ultimate loss – just to spite the fellow hedge fund manager with whom he has supposedly kissed and made up? We will find out soon, because if Herbalife is to be LBOed, Icahn knows that the window in which bond investors are willing to take a gamble on this melting icecube is closing fast.




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Most Transparent Insider Trading Congress Ever Tells SEC To Shove it

“Do as we say, not as we do,” appears the modus operandi of the current administration’s increasingly totalitarian regime. Today’s edition of ‘wait, what?’ comes from The WSJ who report that The U.S. House of Representatives told a federal court Friday it should dismiss a lawsuit filed by the SEC (regarding the long-running insider-trading investigation) because Congress is lawfully allowed to ignore requests to turn over records and testimony to the executive branch agency. Arguing “sovereign immunity” and responding in a rather snarky (almost “do you know who we are?” manner), House attorneys blasted the SEC’s “fool’s errand.”

 

As WSJ reports,

The U.S. House of Representatives told a federal court Friday it should dismiss a lawsuit filed by the Securities and Exchange Commission because Congress is lawfully allowed to ignore requests to turn over records and testimony to the executive branch agency.

 

“Rather than acknowledge the fool’s errand on which it has embarked, the SEC instead invites this court to join it by disregarding fundamental limitations on judicial authority,” wrote House attorneys in a new court filing.

 

The SEC filed a lawsuit last month in the U.S. District Court for the Southern District of New York seeking to force House lawyers to turn over documents sought by the agency in a long running insider-trading investigation.

 

 

House lawyers largely repeated arguments they made in an earlier motion asking the court to dismiss the SEC case.

 

They say neither Mr. Sutter nor the committee have done anything improper and argued they are not required to comply with the subpoenas under provisions in the Constitution that shield legislative activity from outside scrutiny.

 

They also argue “sovereign immunity,” which protects the government from legal liability without an explicit waiver, also shields it from a suit filed by a government agency.

*  *  *

And summing it all up

 

 

Source: Investors.com




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Here Are The Most Shorted S&P And Russell Stocks (Yes, Trulia Is One Of Them)

Earlier today, countless investors who still foolishly believe that in the new normal “fundamentals” matter, screamed out in terror when Zillow announced that it would acquire Trulia for $3.5 billion, a 20% premium to the Friday close, and were suddenly silenced. The reason: with 38% of its float short (making it the 30th most shorted stock in the Russell 2000), this was one of the most dramatic confirmations of what we said was the best trading strategy under the Fed’s artificial capital misallocation regime, namely “buying the most hated names to generate the most alpha.”

In fact, for the benefit of our readers who also wanted to think like a central planner, criminal or five year old (or all of the above combined) we started compiling the list of most shorted stocks some time back in 2012. It was then that we said:

By now it should be no secret that under the New Centrally-Planned Normal, good is great, but worst is far greater. It is therefore no surprise that in the past year, some of the highest returning stocks have been the companies which have seen wave after wave of shorts come in, attempting to ride the underlying equity value to zero, only to see themselves scrambling to cover short squeezes, generated either due to the pull of borrow by an overeager shareholder, or due to bad news not being horrible enough, leading to short covering ramps.

Since then the most shorted stock category continues to make fools out of all those who still believe that under ZIRP things like cash flow, earnings growth, covenant, leverage, or going concern matter (as they experienced most recently today with TRLA), and have outperformed the broader market by several orders of magnitude.

So for all those who still believe that the market has quite a ways to go under the yoke of the Fed’s centrally-planning before it all crashes into a house of rigged cards, here is the list of the most shorted stocks in the S&P 500 and Russell 2000, sorted by descending short interest as a % of float.

First, the S&P 500:

 

And the Russell 2000:

Source: CapitalIQ




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Here Are The Most Shorted S&P And Russell Stocks (Yes, Trulia Is One Of Them)

Earlier today, countless investors who still foolishly believe that in the new normal “fundamentals” matter, screamed out in terror when Zillow announced that it would acquire Trulia for $3.5 billion, a 20% premium to the Friday close, and were suddenly silenced. The reason: with 38% of its float short (making it the 30th most shorted stock in the Russell 2000), this was one of the most dramatic confirmations of what we said was the best trading strategy under the Fed’s artificial capital misallocation regime, namely “buying the most hated names to generate the most alpha.”

In fact, for the benefit of our readers who also wanted to think like a central planner, criminal or five year old (or all of the above combined) we started compiling the list of most shorted stocks some time back in 2012. It was then that we said:

By now it should be no secret that under the New Centrally-Planned Normal, good is great, but worst is far greater. It is therefore no surprise that in the past year, some of the highest returning stocks have been the companies which have seen wave after wave of shorts come in, attempting to ride the underlying equity value to zero, only to see themselves scrambling to cover short squeezes, generated either due to the pull of borrow by an overeager shareholder, or due to bad news not being horrible enough, leading to short covering ramps.

Since then the most shorted stock category continues to make fools out of all those who still believe that under ZIRP things like cash flow, earnings growth, covenant, leverage, or going concern matter (as they experienced most recently today with TRLA), and have outperformed the broader market by several orders of magnitude.

So for all those who still believe that the market has quite a ways to go under the yoke of the Fed’s centrally-planning before it all crashes into a house of rigged cards, here is the list of the most shorted stocks in the S&P 500 and Russell 2000, sorted by descending short interest as a % of float.

First, the S&P 500:

 

And the Russell 2000:

Source: CapitalIQ




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America No Deus Ex Machina: John Kerry Can’t Even Get a Truce Between Israel and Hamas

not even for the camerasA year and a half ago when John Kerry took over
as secretary of state at the start of President Obama’s second
term, he set his sight on the quixotic holy grail of U.S. shuttle
diplomacy, a Palestinian-Israeli peace. Today, with Hamas and
Israel locked in a violent struggle, John Kerry has found he can’t
even negotiate a ceasefire between Israel and Hamas, with The
New York Times
reporting that Israel told U.S. officials they
did not need, and were not interested in, another round of “shuttle
diplomacy” by Kerry. The U.N.  Security Council has also
called on both sides to
cease fire
.

Egypt has taken the lead on negotiating a ceasefire between
Hamas and Israel, a role it’s assumed on and off since signing a
peace treaty with Israel in 1979. That treaty was negotiated at
Camp David with the help of President Jimmy Carter and insured by
the promise of billions of taxpayer’ dollars in U.S. aid aid to
Egypt and Israel, an arrangement that continues to this day. That
treaty ended a state of war between Egypt and Israel that began
during the 1948 war that followed Israeli independence, and was the
first time an Arab state recognized Israel. It also involved the
withdrawal of Jewish civilians and troops from the Sinai peninsula,
which Israel occupied after the Six Days’ War in 1967. The
Egyptian-Israeli peace treaty also led to Egypt being suspended
from the Arab League for a year and eventually the assassination of
Egyptian President Anwar Sadat by Islamist extremist s.

Thanks in large part to the annual U.S. aid, the peace treaty
has survived nearly 40 years despite widespread disapproval among
the Egyptian population and even when the Egyptian government was
headed briefly by a president from the Muslim Brotherhood. Mohammed
Morsi vowed to
respect
the peace treaty with Israel and
during the last flare-up
between Israel and Hamas he tried to
broker a ceasefire, as Egypt is doing again now.

John Kerry would desperately like to be able to claim some kind
of victory in the Israeli-Palestinian peace process but his failure
to make any progress so far, even as expectations are lowered,
illustrates why the American government is a less-than-ideal, and
hardly necessary, broker in whatever “peace process” may still
exist. The U.S., for example, does not recognize Hamas so on the
Palestinian side U.S. diplomats can only talk to Fatah, which has
effectively no power in Gaza. Because of its aid to Israel, U.S.
diplomats aren’t seen as unbiased brokers. And as Israel’s defense
minister Moshe Yaalon showed when
he said
he wanted John Kerry to win a Nobel Peace Prize so he
could leave Israel alone, there’s a sense that U.S. involvement in
Israeli-Palestinian peace process is more a matter of prestige than
peacemaking per se. The U.S. government should give Yaalon what he
wants: disengage from the peace process and stop
subsidizing
the Israeli military. Maybe it’ll open the door for
Israel and Palestine to settle their problems on their own the way
they want.

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