Have Chicago residents finally had enough of rankling lower on the totem pole than the illegal aliens that seem a top priority of the Democratic Party?
“You want to take the little scraps of resources that we have and put us at the bottom of the bar? That’s not fair!”
“Illinois warns to prepare for up to 25 buses of migrants a day as state pleads for help from the federal government. And now the good people of the city of Chicago have had enough.”
“Now the good people of the city of Chicago have had enough and said this needs to stop, and these woke policies of open borders and ‘we want to be a sanctuary city’ needs to end.”
Illinois is one 11 states that have declared themselves a “sanctuary state,” i.e. they passed laws prohibiting some forms of cooperation with ICE and won’t hold the fact that they’re illegal aliens against them when doling out government welfare state goodies.
Under Lori Lightfoot, the city would actually interfere with ICE conducting raids.
Other Democrats, like Senator Dick Durbin, were all on-board with the pro-illegal alien agenda.
“Now, because of Chicago’s love of immigrants and welcoming nature, Texas was like ‘Well, hey, if the immigrants are coming here and you guys want the immigrants and we don’t want them, let’s just send them to you. You guys can obviously take care of the millions and millions of immigrants coming across the border.’ So they started bussing immigrants to Chicago.”
Naturally Lightfoot called Abbott’s bussing strategy “racist” and “Xenophobic.”
“Guess what’s going on in Chicago now? Well, it’s turned into a quote unquote migrant crisis, and now the governor is asking the federal government to step in and ‘Stop! We have too many! We have too many! It was okay when it was going on in Texas, but it’s going on in Illinois and we need money, resources, and the border to be closed!'”
“The governor directly asked President Biden to intervene in the border busing program that has brought thousands of migrants to Chicago. He went on to call the situation ‘untenable’ and again asked for expedited work authorizations. He said the state is struggling to find more housing for the migrants as tensions rise throughout the city.”
“In Chicago, you have poor black and brown people who are American citizens, and they needed help and weren’t getting the help from the city. But now the city all of a sudden can spend tens of millions of dollars on illegal immigrants coming to the city to shelter them, house them, feed them and clothe them. So the city residents are like ‘What the hell, bro? What about us? We’ve already been here! This is ridiculous!'”
“The Southside has been underresourced, underfunded for years for decades. We have schools that need to be reopened, we have buildings that are abandoned that need to be business operated.” Yet I’m willing to be that during those years and decades of underfunding, you and your friends kept pulling that “D” lever no matter what. And Democrats know you’re not going to stop voting for them, so why should they work to solve your problems when they know they’ll get your vote anyway?
“The true kicker here is because people who live in Chicago who are poor who don’t have those resources are wondering ‘Well, hell, when I’m homeless here in Chicago, they weren’t building new tent cities for me, they weren’t putting me in hotels.’ It was kind of like well, be damned good luck to you, but now you get somebody coming from Venezuela, now we’re opening up the pocketbook for them?”
“The people of Chicago seem to be finally waking up. But we’ll only see when there’s the next election because, are they going to vote for this mayor? Are they going to vote for this city council? Because those are the people who are screwing them.”
Of course those are the people who are screwing them. And of course they’re going to vote for them again. Their entire focus seems to be “Other people are getting goodies from the government, and I want those goodies!” Not: “How can I make safer communities for private enterprise to invest in and provide jobs?”
Those people will never stop voting for Democrats. And Democrats know it. So they have no incentive to dispense crumbs from their graft machine when there are new victimhood identity politics groups to pander to.
Well, I’ve had better weeks. In addition to my job ending, my dog had to get $1,700 worth of veterinary work done (removing and testing a lump on his chest, and while he was getting that I got his teeth cleaned). So feel free to hit the donation jar at the bottom of the post.
A prosecutor overseeing the Hunter Biden tax probe likely intervened to protect President Biden from Department of Justice scrutiny, Eileen O’Connor, former assistant attorney general for the Justice Department’s Tax Division, testified at the first House Oversight impeachment hearing Thursday.
The impeachment inquiry, which was formally opened earlier this month without a full House vote, builds on the committee’s months-long probe into Biden’s alleged foreign influence peddling.
U.S. attorney for the District of Delaware David Weiss led the investigation into Hunter Biden’s taxes, which began in 2018, and was assisted by assistant U.S. attorney Lesley Wolf.
IRS whistleblowers who worked on the probe, and have since provided a trove of information to the committee, identified many deviations from standard procedure, which they claim were driven by Weiss and his staff as well as officials at main Justice in an attempt to slow walk or otherwise obstruct the probe.
The whistleblowers highlighted the fact that attorneys from the DOJ’s tax division suggested the removal of Hunter’s name from documents, including subpoenas, and pointed out that prosecutors at the U.S. attorney’s office in Delaware prohibited IRS and FBI investigators from asking about or referring to “the big guy” or “dad” in witness interviews.
Wolf also ordered investigators not to escalate the tax probe into a campaign-finance probe, according to a document the GOP committee obtained from the whistleblowers. Specifically, she told them not to pursue the possibility that a hefty sum Hunter received from a major Democratic donor to pay his back taxes may have constituted an illegal campaign-finance contribution.
Why, it’s almost as if there’s a different rule for powerful Democrats than for other Americans…
“Adam Schiff Funneled Millions To Defense Contractors After Taking Donations.” Of course he did. “This financial maneuvering coincided with Schiff receiving $8,500 in contributions from PMA Group PAC and two family members of Paul Magliocchetti, founder and owner of the lobbying firm retained by both defense companies. In 2011, Paul Magliocchetti was sentenced to 27 months in prison for making illegal campaign contributions.”
Target closes nine stores in Portland, San Francisco, Oakland, Seattle and New York City, citing losses from crime.
States are fighting back against ESG companies trying to destroy their oil and gas industries.
“Oklahoma is a natural gas and oil industry state,” [Oklahoma State Auditor Cindy Byrd] said. “These things are very important to us, and we’ve seen that shut down over the last few years, which is really hurting Oklahoma.”
Increasingly, the environmental social and governance (ESG) industry is coordinating efforts among banks, insurance companies, and asset managers to cut America’s production of fossil fuels. It coordinates these efforts through a coalition of net-zero associations under the umbrella of the U.N.-affiliated Glasgow Financial Alliance for Net Zero (GFANZ).
The net-zero clubs that are part of GFANZ encompass virtually all elements of global finance, including the Net Zero Banking Alliance (NZBA), the Net Zero Insurance Alliance (NZIA), the Net Zero Asset Managers initiative (NZAMi), the Net Zero Asset Owners Alliance (NZAOA) and the Net Zero Financial Service Providers Alliance (NZFSPA). Members of these alliances pledge to work together to achieve UN goals of net zero CO2 emissions by 2050 or sooner.
We thought about investments, getting good returns, trying to make money with your money, and that was the prominent thought when I first got in office,” said Kentucky State Treasurer Allison Ball. “I remember when I first started coming to events, I began to hear about an initiative called ESG, and I thought at the time that this was academic; I didn’t really take it very seriously.
“In the course of the last couple of years, it began to become very aggressively pushed,” she told The Epoch Times. “There’s been an effort to really make it the only game in town, to really shift that mentality from investing to make money, making sure you’re getting good returns, to using investments as leverage to push certain mostly political ideas.
“Coal and oil and gas industries, those are signature industries in Kentucky,” Ms. Ball said. “And they’ve been targeted very strongly by the E part of ESG, so I began to see real impacts on the economy of Kentucky, my home area.”
The felony convictions of four former Navy officers in one of the worst bribery cases in the maritime branch’s history were vacated Wednesday due to questions about prosecutorial misconduct, the latest setback to the government’s years-long efforts in going after dozens of military officials tied to Leonard Francis, a defense contractor nicknamed “Fat Leonard.”
U.S. District Judge Janis Sammartino called the misconduct “outrageous” and agreed to allow the four men to plead guilty to a misdemeanor and pay a $100 fine each.
California Democratic Senator Dianne Feinstein dead at 90.
“A group of five Harris County residents filed a petition in state district court on Friday seeking to remove Harris County Judge Lina Hidalgo from office, arguing that she has abandoned her duties and responsibilities as the elected chief executive of the state’s most populous county….petitioning to remove Hidalgo under Texas Local Government code allowing for removal of an unfit or incompetent elected official.” She’s been on “mental health leave” since July.
“Prosper ISD Taxpayers Debate Priciest High School Stadium in Texas.” As in $94.8 million pricey. And that’s after they already built one for $53 million, the fifth priciest in the state, that opened in 2019. And they’ve already built two high schools that cost $200 million each, presumably with gold-plated microscopes and Tito Puente as the music teacher…
San Diego tries enforcing the law, a sampler of the lies Obama told about his life, Blade-Runners take on Big Brother’s cameras, a nuke rises in Texas, and a Cthuloid horror swims the chilly waters of Antarctica. It’s the Friday LinkSwarm!
San Diego tries “this one weird trick” to deal with homeless problem: Enforcing the law.
Police began enforcing San Diego’s controversial new camping ban Monday, and although officials said they’ve so far focused only on Balboa Park, the new ordinance combined with other enforcement of laws long on the books has already made notable changes in the encampment landscape.
The “Unsafe Camping Ordinance” allows officers to force people off public land if they’re sleeping within two blocks of a school, shelter, trolley station, waterway or park “where a substantial public health and safety risk is determined.”
Capt. Shawn Takeuchi, head of the city’s neighborhood policing division, said his five-member team did arrest several homeless people Monday by Balboa Park, but only for existing warrants.
Others were given a warning, he said. If any of the same people are found illegally camping a day later, they’ll get a ticket even if they’ve moved locations.
Nobody in Balboa Park accepted offers for shelter Monday, the captain added. Enforcement will continue to focus on schools and parks in the near future, and officials declined to say where the team might move next.
Do you think Austin’s government might start enforcing the city’s camping ban? Of course not. Then how are they supposed to rake off the graft? (Hat tip: Instapundit, who offers some takeaways worth highlighting:
1. The homeless respond to policy and incentives like anyone else. The mere announcement of a future camping ban (plus some enforcement of other existing rules) rapidly cleared out major problem areas.
2. The provision of shelter or housing is neither necessary nor sufficient to accomplish these clear-outs. Of the people asked to leave Balboa Park on the first day of enforcement (issuance of warnings), none accepted offers of shelter.
3. The NGOs that have colonized the homeless problem have neither the incentive nor the knowledge to solve it. The head of one shelter was confused by the magical disappearance of his potential clients. “Where did they go?”
There is a fascinating passage in Rising Star, David Garrow’s comprehensive biography of Barack Obama’s early years, in which the historian examines Obama’s account in Dreams from My Father of his breakup with his longtime Chicago girlfriend, Sheila Miyoshi Jager. In Dreams, Obama describes a passionate disagreement following a play by African American playwright August Wilson, in which the young protagonist defends his incipient embrace of Black racial consciousness against his girlfriend’s white-identified liberal universalism. As readers, we know that the stakes of this decision would become more than simply personal: The Black American man that Obama wills into being in this scene would go on to marry a Black woman from the South Side of Chicago named Michelle Robinson and, after a meteoric rise, win election as the first Black president of the United States.
Yet what Garrow documented, after tracking down and interviewing Sheila Miyoshi Jager, was an explosive fight over a very different subject. In Jager’s telling, the quarrel that ended the couple’s relationship was not about Obama’s self-identification as a Black man. And the impetus was not a play about the American Black experience, but an exhibit at Chicago’s Spertus Institute about the 1961 trial of Adolf Eichmann.
At the time that Obama and Sheila visited the Spertus Institute, Chicago politics was being roiled by a Black mayoral aide named Steve Cokely who, in a series of lectures organized by Louis Farrakhan’s Nation of Islam, accused Jewish doctors in Chicago of infecting Black babies with AIDS as part of a genocidal plot against African Americans. The episode highlighted a deep rift within the city’s power echelons, with some prominent Black officials supporting Cokely and others calling for his firing.
In Jager’s recollection, what set off the quarrel that precipitated the end of the couple’s relationship was Obama’s stubborn refusal, after seeing the exhibit, and in the swirl of this Cokely affair, to condemn Black racism. While acknowledging that Obama’s embrace of a Black identity had created some degree of distance between the couple, she insisted that what upset her that day was Obama’s inability to condemn Cokely’s comments. It was not Obama’s Blackness that bothered her, but that he would not condemn antisemitism.
Snip.
Perhaps the most revealing thing about Jager’s account of her fight with Obama, though, is that not one reporter in America bothered to interview her before David Garrow found her, near the end of Obama’s presidency. As Obama’s live-in girlfriend and closest friend during the 1980s, Jager is probably the single most informed and credible source about the inner life of a young man whose election was accompanied by hopes of sweeping, peaceful social change in America—a hope that ended with the election of Donald Trump, or perhaps midway through Obama’s second term, as the president focused on the Iran deal while failing to address the concerns about rampant income inequality, racial inequality, and the growth of a monopoly tech complex that happened on his watch.
The idea that the celebrated journalists who wrote popular biographies of Obama and became enthusiastic members of his personal claque couldn’t locate Jager—or never knew who she was—defies belief. It seems more likely that the character Obama fashioned in Dreams had been defined—by Obama—as being beyond the reach of normal reportorial scrutiny. Indeed, Garrow’s biography of Obama’s early years is filled with such corrections of a historical record that Obama more or less invented himself. Based on years of careful record-searching and patient interviewing, Rising Star highlights a remarkable lack of curiosity on the part of mainstream reporters and institutions about a man who almost instantaneously was treated less like a politician and more like the idol of an inter-elite cult.
Snip.
Progressive theology is built on a mythic hierarchy of group victimhood which has endured throughout time, up until the present day; the injuries that the victims have suffered are so massive, so shocking, and so manifestly unjust that they dwarf the present. Such injuries must be remedied immediately, at nearly any cost. The people who do the work of remedying these injustices, by whatever means, are the heroes of history. Conversely, the sins of the chief oppressors of history, white men, are so dark that nothing short of abject humiliation and capitulation can begin to approach justice.
It goes to say that nothing about the terms of progressive theology is original. It is the theology of Soviet communism, with class struggle replaced by identity politics. In this system, Jews play a unique, double-edged role: They are both an identity group and a Trojan horse through which history can reenter the gates of utopia.
Read the whole thing to see all those facts about Obama that the media ignored…including his fantasies about having sex with men.
Members of the IPCC, such as Pedro Moura-Costa (above) and Gareth Philips, had major conflicts-of-interest. They owned, created and/or worked for businesses — such as Ecosecurities and SGS Forestry — that would directly profit from the report’s conclusions.
In fact, the IPCC panel members’ companies were positioned to earn millions of dollars from the report. But the mainstream media did not report these conflicts and instead piled on the “global warming” and “carbon offset” bandwagons.
Solar energy portal Ecotopia reported that members of the IPCC “…had vested interests in reaching unrealistically and unjustifiably optimistic conclusions about the possibility of compensating for emissions with trees… [and] should have been automatically disqualified from serving on an intergovernmental panel charged with investigating impartially the feasibility and benefits of such ‘offset’ projects.”
According to accounts of four people with knowledge of the situation, M. Kaleo Manuel, a Native Hawaiian cultural practitioner and DLNR’s deputy director for water resource management, initially refused West Maui Land Co.’s requests for additional water to help prevent fires from spreading to properties managed by the company. Manuel eventually released water but not until after the fire had run its course.
His office has not yet commented on the delay of water resources.
How much damage could have been prevented with the extra water is not yet known. However, the question of “Why?” needs to be addressed in the wake of one of the worst natural disasters in Hawaii’s history. Though bureaucratic red tape might be the most obvious suggestion, a recent interview with M. Kaleo Manual offers some interesting and disturbing insight. Manuel waxes philosophical on “water equity” (“equity” being a pervasive woke buzzword) and an ancient “reverence” of water as god-like. He uses these beliefs to support his rationale for keeping tight controls over Hawaiian water supplies; not as a resource to be used, but as a holistic privilege offered by the government.
Economist who named BRICS says the idea of a common BRICS currency is “embarrassing.”
“It’s just ridiculous,” [Lord Jim O’Neill] told the Financial Times in an interview on Monday. “They’re going to create a BRICS central bank? How would you do that? It’s embarrassing almost.”
The economist spoke ahead of the 15th BRICS summit next week, where the nations will meet to decide whether to expand membership to other countries and may also float the idea of the common currency.
The following story was related to me by a former Governor of Minnesota, who was of Norwegian descent. A number of years ago, a Norwegian dignitary (the Prime Minister, I think) visited Minnesota. Talking to our governor, the Prime Minister tut-tutted about Minnesota’s crime rate, saying that there was much less crime in Norway. Minnesota’s governor replied, “We don’t have a crime problem with our Norwegians, either.”
That anecdote came to mind when I read, in the London Times, “Sweden’s slide from peaceful welfare state to Europe’s gun-killings capital.”
Today, Sweden is Europe’s capital of gun homicide. Last year, according to the Swedish national council for crime prevention, 63 people were shot and killed: more than double the European average and, per capita, multitudes higher than London or Paris.
… The effect on Swedish society has been striking. As well as the lives lost, the violence has brought down a government, changed laws and policies, and become the biggest talking point in a country that once prided itself on its reputation as a peaceful welfare state.
Violent crime will do that, although, to be fair, Sweden’s homicide rate is considerably lower than ours. But it is now significantly higher than homicide rates in quite a few other European countries, including Norway. Why is that? Have Swedes suddenly started getting violent? No.
It has also kicked the hornet’s nest of integration. Today, one fifth of all people living in Sweden were born outside the country.
Dow Chemical is planning to build a small nuclear reactor to power their plant in Calhoun County. Good for them. The TRISO-X fuel they’re using sounds like it will be a pebble bed reactor design.
“Target Sales Dipped in Last Quarter Due to Pride Backlash.”
More Biden Crime Family evidence surfaces, another mysterious Chinese bio-lab (this one much closer to home than Wuhan), more blue city real estate disaster, and Tim Scott screws up. It’s the Friday LinkSwarm!
President Joe Biden vehemently denied ever talking business with his son, “or with anyone else” in the run-up to the 2020 election. In fact, Biden even fat-shamed an Iowa voter who approached the subject during the Democratic primaries. On the debate stage with Donald Trump, the former vice president peddled conspiracies of Russian interference when emails from Hunter Biden’s laptop revealed otherwise.
On Sunday night, the New York Post reported on anticipated testimony from Hunter Biden’s former business partner, Devon Archer. The 48-year-old who went golfing with the Bidens in 2014 is expected to tell the House Oversight Committee how Hunter Biden put his father in contact with foreign businessmen and potential investors at least 24 times. According to the Post, such meetings were either in person or by speakerphone, with Hunter Biden often dialing in Joe.
Beyond those meetings, there are more than 180 other episodes where the president interacted with his son’s business partners, contrary to his campaign claims of “absolute” separation.
As the evidence for at least an impeachment inquiry into President Joe Biden mounts, Sen. Ted Cruz (R-TX) and co-host Ben Ferguson discussed the latest bombshell – 170 suspicious activity reports (SARs) from six banks over the past few years – on their podcast with House Oversight Chairman James Comer (R-KY).
As Townhall reports, these SARs are submitted and sent to the Treasury Department when banks “have a strong suspicion” that a crime has been committed, so as to protect the bank.
As Comer emphasized, these are submitted “very seldom.”
If someone were to have two, the chairman explained, it would be hard for that person to open up a bank account.
Submitting an SAR, Comer added, also is “inviting the regulators to come in and regulate,” which is the last thing banks want.
The full transcript from Devon Archer’s sworn testimony before the House Judiciary Committee from Monday, July 31, has been released. During that testimony, Archer told Rep. Dan Goldman that Hunter Biden had been placed on the board of directors for Ukrainian energy company Burisma in order to “legally” intimidate people.
During that question period, Goldman asked Archer “So based on everything you saw, heard, and observed, did you have any knowledge of Joe Biden having any involvement with Burisma?”
Archer said that while he did not have “direct” knowledge, it was his view that Burisma would not last were in not for Joe Biden’s involvement. “My only thought is that I think Burisma would have gone out of business if it didn’t have the brand attached to it. That’s my, like, only honest opinion,” Archer said. He went on to say that the company was able to survive for as long as it did because Hunter was on the board.
“Just because of the brand,” Archer said. The “brand” refers to the Biden name. Speaking with The Post Millennial, Congresswoman Marjorie Taylor Greene said that the brand was not only Biden, but the vice presidency during Biden’s tenure.
“How does that have an impact?” Goldman asked.
“Well, the capabilities to navigate D.C.,” Archer said, “that they were able to, you know, basically be in the news cycle. And I think that preserved them from a, you know, from a longevity standpoint. That’s like my honest—that’s what I—tht’s like how I think holistically.”
“But how would that work?” Goldman asked.
“Because people would be intimidated to mess with them,” Archer replied.
“In what way?” Goldman pressed.
“Legally,” Archer said.
Archer also spoke about the meetings during which Joe Biden would call in, or be called. “He put him on speakerphone, again, occasionally. Specifics, like, you know, dinner—you know, dinners occasionally.” Archer was asked to describe the dinners, and said “I remember a dinner in Paris with a French energy company that was—we were speaking to an advisor, and then—we were speaking to. And it was really a Rosemont Seneca Advisors type of—a Rosemont Seneca Advisors kind of a pitch, at the end of the day. And there was a talk, and he said that we’re at this—you know, we’re at this restaurant in Paris, and he put him on the speaker. So that did happen. There were other people there.”
That dinner, specifically, was attended by “myself; Hunter; Eric Schwerin; and then the executives from the French energy company,” Archer said.
Another was in “Beijing, at, you know, some restaurant,” Archer said, “—or Chengdu or something like I don’t remember the—I don’t remember specifics. This was just—it was not—t was like a, you know—especially with the time zone difference, there was—you know, there were meetings where his dad would call and he would be talking to him or put him on speaker. I’m not going to—you know, that’s—that happened.”
Archer said that the conversation at that dinner, with Jonathan Li, was primarily niceties. But it was his contention that getting the vice president on the phone, showing off that kind of access, was what those calls were all about. Archer testified that Hunter Biden would say things like “Hey, guys, my dad’s on the phone.”
Another call, which Archer revealed during questioning by Rep. Jim Jordan, took place in Dubai. During this impromptu meeting, Hunter Biden was contacted by Burisma’s CEO Zlochevsky, who said “We’re under pressure. We need to go—we want to talk to Hunter.” Hunter called DC, and Archer was “not in the earshot” of that call.
It was only 5 days after that call that Joe Biden “has a trip to the Ukraine, and he makes a statement: ‘It’s not enough to set up a new anti-corruption bureau and establish a special prosecutor fighting corruption. The Office of the General Prosecutor desperately needs reform.” That was in 2015, and Biden withheld $1 billion in loan guarantees from Ukraine until such time as the prosecutor Viktor Shokin was fired.
Bill Stevenson, who was married to Jill Biden between 1970 and 1975, told Newsmax last week that the president’s brother, Frankie Biden, tried to intimidate him during his divorce with Jill, and claimed the family threatened him with repercussions.
“Frankie Biden of the Biden crime family comes up to me and he goes, “Give her the house or you’re going to have serious problems,”” Stevenson said. “I looked at Frankie and I said, “Are you threatening me?” and needless to say, about two months later, my brother and I were indicted for that tax charge for $8,200.”
When asked to clarify whether he thinks Joe Biden was behind the tax charge, Stevenson told host Greg Kelly: “I not only think it, but I know it,” adding that he “could not believe the power of Joe Biden and the Department of Justice. I couldn’t believe it.”
Kelly also noted the parallels between Stevenson’s case and Hunter Biden’s ongoing tax troubles – noting that Hunter was hit with just two misdemeanor counts for $2.2 million in unpaid taxes, while Stevenson and his brother were slapped with two felonies for just over $8,000 in unpaid taxes.
This is a weird, disturbing story: Mysterious Chinese bio-lab discovered in Reedley, CA in the central San Joaquin Valley.
Court documents detail the horrors and dangerous nature of an illegal lab found in Reedley, California, exposed several months ago by a city code enforcement officer. What was found inside prompted the fire chief to send a letter to city officials describing it as a “potential disaster for the city.”
An investigation into the warehouse was prompted by a simple garden hose that was illegally attached and coming out of a wall in the back of the building.
“Frankly, we knew that should not have been there and when she went to investigate, she found that there was activity or operation or something happening within that building,” said Reedley City Manager Nicole Zieba.
The city then obtained a search warrant to look inside what should have been an ordinary warehouse. Inside, they found thousands of vials, many of which contained bio-hazardous materials like human blood, and other unknown substances.
“There was over 800 different chemicals on site in different bottles of different acids. Unfortunately, a lot of these are being categorized under ‘unknown chemicals,’” said Assistant Director of the Fresno County Department of Public Health Joe Prado. “A lot of these labels have been removed from bottles so there was only so much testing we could do [on] those chemicals.”
Health officials also discovered nearly 1,000 lab mice, 200 of which were dead.
Prado said the warehouse occupants claimed they were “doing some testing on laboratory mice that would help them support [and develop] the COVID test kits that they had on-site.”
According to court documents, officials with the Centers for Disease Control and Prevention tested what they could and determined that at least 20 potentially infectious viral, bacterial, and parasitic agents were present, including E. coli, malaria, and the virus that causes COVID-19.
“Scientists Call for Full Retraction of Nature’s Proximal Origin Paper, as Fraud Accusations Mount.” Their response was simplicity itself: They lied.
A growing number of people, including prominent scientists, are calling for a full retraction of a high-profile study published in the journal Nature in March 2020 that explored the origins of SARS-CoV-2.
The paper, whose authors included immunology and microbiology professor Kristian G. Andersen, declared that evidence clearly showed that SARS-CoV-2 did not originate from a laboratory.
“Our analyses clearly show that SARS-CoV-2 is not a laboratory construct or a purposefully manipulated virus,” the authors wrote in February.
Yet a trove of recently published documents reveal that Andersen and his co-authors believed that the lab leak scenario was not just possible, but likely.
“[The] main thing still in my mind is that the lab escape version of this is so friggin’ likely to have happened because they were already doing this type of work and the molecular data is fully consistent with that scenario,” Andersen said to his colleagues, according to a report from Public, which published a series of Slack messages between the authors.
Anderson was not the only author who privately expressed doubts that the virus had natural origins. Public cataloged dozens of statements from Andersen and his co-authors—Andrew Rambaut, W. Ian Lipkin, Edward C. Holmes, and Robert F. Garry—between the dates January 31 and February 28, 2020 suggesting that SARS-CoV-2 may have been engineered.
” …the fact that we are discussing this shows how plausible it is,” Garry said of the lab-leak hypothesis.
“We unfortunately can’t refute the lab leak hypothesis,” Andersen said on Feb. 20, several days after the authors published their pre-print.
The rap on Tim Scott is that he is too nice to be a modern Republican, but that’s wrong – he’s too weak to be a modern Republican. The man consistently defaults to submission to the woke left, but the times call for a warrior and his brand is soft surrender. Yeah, it would be nice to live in an era where we have the luxury of a president who dodged the draft in the culture wars, but we do not live in that time. Tim Scott needs to stay right where he is, an affable but unaccomplished senator firmly within the tradition of the political puffballs that South Carolina’s GOP inexplicably turns out. Let him be nice somewhere where his alleged niceness won’t shaft us again.
It could have been different, but that would require a different man than Tim Scott. There are moments that define a candidate, moments where they have a choice and the choice they make makes or breaks them. Kamala Harris decided to take what is essentially a footnote within the Florida history standards and contort it into some sort of lie about how Ron DeSantis loves slavery. It’s one of those issues where the claim is so facially ludicrous that you have to wonder if Kamala is stupid or cynical – and come to the conclusion that she is probably both. But she went with it and DeSantis pushed back and we were moving on when someone in the regime media asked Tim Scott about it.
This was his decision point. It was an opportunity to show who he is. And Tim Scott whiffed.
Taking the wrong side in the social justice war is disqualifying. Scott has gone from being maybe my third favorite candidate in the field and a strong Veepstakes possibility to being behind Doug Bergrum and Vivek Ramaswamy.
Oakland residents are sick and tired of our intolerable public safety crisis that overwhelmingly impacts minority communities. Murders, shootings, violent armed robberies, home invasions, car break-ins, sideshows, and highway shootouts have become a pervasive fixture of life in Oakland. We call on all elected leaders to unite and declare a state of emergency and bring together massive resources to address our public safety crisis…
Failed leadership, including the movement to defund the police, our District Attorney’s unwillingness to charge and prosecute people who murder and commit life threatening serious crimes, and the proliferation of anti-police rhetoric have created a heyday for Oakland criminals. If there are no consequences for committing crime in Oakland, crime will continue to soar.
People are moving out of Oakland in droves. They are afraid to venture out of their homes to go to work, shop, or dine in Oakland and this is destroying economic activity. Businesses, small and large, struggle and close, tax revenues vanish, and we are creating the notorious doom-loop where life in our city continues to spiral downward. As economic pain increases, the conditions that help create crime and criminals are exacerbated by desperate people with no employment opportunities.
We are in crisis and elected leaders must declare a state of emergency and bring resources together from the city, the county, and the state to end the crisis. We are 500 police officers short of the number that experts say Oakland needs. Our 911 system does not work. Residents now know that help will not come when danger confronts them. Worse, criminals know that too…
There is nothing compassionate or progressive about allowing criminal behavior to fester and rob Oakland residents of their basic rights to public safety. It is not racist or unkind to want to be safe from crime. No one should live in fear in our city.
Speaking of blue city retail apocalypses: “Field Office, a Trophy Complex Unable to Find Tenants, Defaults on $73.8 Million Loan. Goldman Sachs and Lincoln Property stopped making payments.”
The owners of Field Office, a 290,375-square-foot office complex near the Willamette River, have defaulted on their $73.8 million loan after being unable to find enough tenants, becoming the latest office owners to throw in the towel on Portland’s struggling office market.
Field Office is owned by New York investment bank Goldman Sachs and Lincoln Property Co., a Dallas-based real estate firm with operations in Portland. The pair bought Field Office from local developer Project^ and National Real Estate Advisors, an investment firm based in Washington, D.C., for $118 million in April 2019, according to public records.
Funny how letting antifa/#BlackLivesMatter rioters and crime run rampant through your downtown destroys property values. #ThisIsYourCityOnSocialJustice
Black Florida State University professor who published numerous studies on “systemic racism” is fired for just making shit up. (Hat tip: Dwight.)
You’re a Texas republican congressman who’s also an ER doctor and you try to assist a teenage girl having a medical emergency? That’s a handcuffing.
A former employee of a large food service corporation is suing the company in federal court after it fired her for refusing to participate in a program that discriminates against white male employees.
Courtney Rogers worked for Charlotte, North Carolina-based Compass Group USA Inc. from her home office in San Diego, California.
The company had more than 280,000 employees and $20.1 billion in revenue in 2019, according to its LinkedIn profile.
“Back in 2018, NBA megastar LeBron James opened his I Promise School in Akron, Ohio with the noble goal of transforming the lives of at-risk students and parents in his hometown. But it appears that the school has some major challenges five years into its existence. According to a report from the Akron Beacon Journal, the I Promise School’s fall class of eighth graders has has not seen a single student pass the state’s math test in five years – since the group was in the third grade.”
Big Medicare fraud ring busted in Houston. How big? $142 million big.
The Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU) has made a series of arrests and seized assets related to a fraud case in Houston.
Lily Tran Daniel, Kenneth Reynolds, and Lillian Thai were all arrested on suspicion of their “involvement in a major healthcare fraud scheme” associated with ApolloMDx, a genetic testing company.
According to a release from the OAG, AplloMDx had involvement in a $142 million healthcare fraud scheme where they would offer illegal kickbacks in order to purchase recipient information form marketers and orders for genetic testing from doctors.
The statement from the OAG details how ApolloMDx would make alterations on the dates of service on testing orders, making it appear that they collected multiple DNA samples on different dates, so they could bill for multiple dates of service to increase their Medicare reimbursement on genetic testing claims.
Since the inception of the national Medicare Fraud Strike Force to crack down on Medicare fraud in 2007, Texas has been at the center of many investigations, including what was at the time the country’s largest-ever Medicare fraud takedown in Dallas.
Medicare and Medicaid are two U.S. government programs that were created in the 1960s to provide low-income citizens with a rudimentary form of health insurance coverage. While Medicare covers persons age 65 and older, Medicaid was established for persons under 65 years and those over that age who had exhausted their Medicare benefits. It is also funded jointly by the federal and state governments.
The Texas MFCU worked in conjunction with the Department of Health and Human Services’ (HHS) Office of Inspector General and the Federal Bureau of Investigation to investigate the ApolloMDx case. The prosecution will be carried out by the U.S. Department of Justice’s Health Care Fraud Strike Force. The U.S. Attorney’s Office for the Southern District of Texas is assisting with forfeiture.
In addition to uncovering the fraud scheme, the MFCU seized sports cars, a sailboat, and three properties for a total of $7.1 million, funded by the illegal proceeds accrued from the ApolloMDx operation.
Texas and the federal government jointly finance and administer Medicaid and the Children’s Health Insurance Program, which comes to a total of over $40 billion.
The more money that flows through public welfare systems, the more susceptible to fraud they are. And it wouldn’t surprise me to learn that all the additional money flooding the system has made it that much easier for people to commit fraud.
In Friday’s LinkSwarm, I had a link that asked if Portland was finally sobering up.
Well, for a lot of people and businesses, it’s too late. Such as Kevin Howard, for whom the City of Portland refused to do anything about the homeless people breaking into his property and trashing the place.
And who then fined him because the place was trashed.
“This property was listed in January of 2021 for $795,000. Yesterday we sold it for $412,000,” said Howard.
A significant loss, but Howard says he had nothing left in the tank. The tiny piece of property off Southeast Powell Boulevard, a former pizza parlor, has been a nightmare for the past three years.
“The supposed homeless came in and kicked in the door, the front door, and lived in it,” said Howard. “And I waited until they came out, and I had to board it up.”
But Howard says that didn’t do much. They just broke in again and again, living inside and outside, even in his dumpster enclosure which they eventually set on fire. Howard says he got nowhere when he called the police.
“I said, ‘Well, what does a homeowner do? What does a property owner do?’ and they said, ‘Call Central City Concern,'” said Howard. “I said “What will they do?’ and they said, ‘Well, they’ll probably come out and give them a cup of coffee and some hot soup.'”
Howard looked into hiring a security guard, but that was too expensive at roughly $15,000 a month. So, he decided to get a fence, but the wait was four months.
“I said, ‘Why?’ and they said, ‘Because homeowners like mad are fencing their property to keep the, you know, the drug addicts and the homeless out,'” said Howard.
So, the trash piled up, and Howard tried to keep up, but it wasn’t enough. Last summer, the city hit him with a nuisance fine of nearly $540.
Howard paid the fine.
A month later, he got an even bigger bill, the original amount plus a penalty. The city told him they had lost his check. So, he paid the bill again, plus the extra $100.
“Two weeks later, they sent me another bill for 639 dollars and 71 cents,” said Howard. “I called them up, and they said, “Well, this might be a duplicate bill, but we’ve already put a lien on your property.”
“I just remember the phrase ‘The City That Works.’ The city that jerks, I mean, how can you be this dysfunctional?”
Easy. You let Social Justice Warriors take over your city.
Busy as hell and I have a cold, but I soldier on. LinkSwarm! Russian coup! Texas! Pedophiles! Portland! Braaaaiiiinnnnnns!
I cover the world!
“The owner of the Wagner private military contractor made his most direct challenge to the Kremlin yet on Friday, calling for an armed rebellion aimed at ousting Russia’s defense minister. The security services reacted immediately by calling for the arrest of Yevgeny Prigozhin…Prigozhin claimed early Saturday that his forces had crossed into Russia from Ukraine and had reached Rostov, saying they faced no resistance from young conscripts at checkpoints and that his forces ‘aren’t fighting against children.'” Unconfirmed reports of fighting elsewhere in Russia. Developing…
The City of Dallas is requiring employees to undergo taxpayer-funded transgender reeducation training any time one of their co-workers comes out as “transgender.”
According to internal documents obtained from the City of Dallas by The Dallas Express, “non-transitioning” employees are being forced to undergo reeducation training “to support an inclusive and productive workplace environment for all employees.”
The City of Dallas’ “gender transition toolkit” explains that a transitioning employee should find a “trusted” supervisor or manager as a “first point of contact” to help them through their workplace transition.
The document includes a list of gender terms and definitions. It then moves on to require employees to work with gender-confused co-workers, allowing the “transitioning” employee to use whichever bathroom or locker room at work they feel most comfortable with, ignoring the comfort of other employees.
Speaking of pedophiles: “A former CNN television producer who had pleaded guilty to luring a 9-year-old girl into illegal sexual acts was sentenced Tuesday to more than 19 years in prison and an additional 15 years of supervised release during a U.S. District Court hearing in Vermont. John Griffin of Stamford, Connecticut, pleaded guilty in federal court in December to using interstate commerce to entice and coerce the girl to engage in sexual activity at his Vermont ski house.” (Hat tip: Ed Driscoll at Instapundit.)
In the summer of 2020, Portland, Oregon, became the poster child for American urban disaster zones. During the day, tens of thousands of citizens protested peacefully against police brutality following the murder of George Floyd in Minneapolis. But everything changed after dark. Nonviolent demonstrators with jobs, school assignments, and kids to raise went home; hundreds of anarchists swarmed in to take their place and waged a low-grade insurgency against the city. They fought pitched battles with the cops—throwing rocks, frozen water bottles, fireworks, buckets of excrement, and even Molotov cocktails. They attacked coffeehouses, immigrant-owned restaurants, mom-and-pop retail stores, banks, museums, churches, bus stops, and the Multnomah County Democratic Party headquarters with baseball bats, crowbars, and hammers. Most were military-age white males wearing all-black clothing and hiding their faces. The violence kept up, night after night, week after week, and month after month, into the winter, long after the rest of America had calmed down. My city had become the most politically violent place in the country, and I got worried e-mails from people I knew around the world—even in the Middle East!—asking me if I was okay and why on earth this was happening.
A crime wave followed. Shootings and homicides exploded 300 percent between 2019 and 2022, robberies rose 50 percent in 2022 alone, vehicle thefts hit record highs, and work-order requests for graffiti removal shot up 500 percent between 2020 and 2022. The City of Roses suffered 413 shootings in 2019 but 1,306 in 2022 and nearly twice as many homicides as San Francisco, though Portland is only three-fourths its size. Meantime, statewide crime actually declined from 2019 to 2021.
The homelessness crisis also intensified. The slow-motion collapse of Oregon’s mental-health infrastructure, a dramatic surge of cheap and deadly fentanyl and a far more potent and addictive form of psychosis-inducing meth, and a crippling housing shortage led to the formation of more than 700 tent cities in residential neighborhoods and business districts across the city.
But while it’s too soon to declare that Portland’s troubles have passed, the worst may now be over. Despite ongoing woes, Portland looks and feels much better than it did in dystopian 2020. The riots stopped, and the crime wave seems to have peaked, with shootings down by nearly 40 percent and homicides down more than 50 percent in the early months of 2023. A sober mood shift has taken over the city. Voters passed a ballot measure to restructure city government, while the three newest elected officials on the city council are steering Portland in a different direction. The city, county, and state are taking steps to reverse the decline.
Portland is suffering a serious livability crisis. Eighty-eight percent of respondents in early 2022 told the Portland Business Alliance that the quality of life is worsening. Portland is hardly the most dangerous city in America: the homicide rate in St. Louis is more than four times higher, with 65 murders per 100,000 people, compared with Portland’s 15 in 2022. Portland’s rate peaked at more than double the national average, but of all the cities with higher crime rates than Portland, only Chicago gets as many national headlines. That’s probably because Portland’s increase in crime was the worst in the country. No other city’s homicide rate rose so spectacularly. And unlike St. Louis, Baltimore, and other notorious hot spots, Portland was recently a destination city that touted its high quality of life as a reason to move there.
Of late, though, rather than attracting new residents, Portland has actually lost population, either to the suburbs or out of state. “I’ve never seen money move out of here,” commercial real-estate salesman Stu Peterson told Willamette Week. “Nobody ever wanted to leave Oregon. It’s a beautiful place. Most evacuees are high-wage earners who are fed up with the crime, taxes, and homelessness, in that order. There’s an ugly spiral.” Real-estate agent Justin Harnish described a client who left downtown Portland for the suburb of Lake Oswego after she saw a woman stab another woman in the face with scissors.
Accompanying the crime wave is a drastic staff shortage at the Portland Police Bureau. Portland now has fewer than 800 sworn officers, a smaller number than it had decades ago, when the city was barely half the size it is now. And with the surge in violent crime, the police have little time to deal with anything that isn’t life-threatening. Prioritizing shootings and other emergencies, they’re forced to neglect break-ins, stolen cars, vandalism, and just about everything else. The traffic police unit has been defunded, reduced to a single full-time traffic cop—not for ideological reasons but because the city has no one to staff that division.
Part of the blame rests with the months of demoralizing anti-cop violence in 2020, but Portland would probably be short of police officers anyway. Every city agency, from fire and rescue to the transportation bureau and the public defender’s office, faces staff shortages now. And while a shrunken police force didn’t cause Portland’s crime wave on its own, a police department that can barely react to anything but emergency calls aggravates the problem. Criminals behave as though they can get away with essentially anything and commit far more crimes than they would if they were investigated, arrested, and prosecuted swiftly. The Woodstock neighborhood, where Joe Biden won 88 percent of the vote, is considering hiring its own private security force.
Snip.
I spent more time talking to my neighbors that year than I ever had before or have since. A lot of us suddenly became friendlier outside our houses, and we weren’t talking about sports and the weather. Residents and business owners alike worried about where things were headed and expressed dismay at the city’s inability to defend itself. I didn’t talk with a single person who thought that everything was okay, that city hall was on top of it, or that the anarchists were not a menace. And nobody could understand why the homeless camps at the elementary school down the street or at the park hadn’t been cleared. No, I didn’t conduct my own scientific public opinion survey, but it was obvious that regular people were nearing the end of their rope and that the status quo was bound to be upended.
In 2021, that’s exactly what happened. A tsunami of outrage inundated the mayor, the city council, and the police bureau. Phones rang nonstop. Furious citizens shouted at meetings. Newspaper editors published scathing letters, and journalists at mainstream outlets covered distressed neighborhoods and interviewed disgruntled citizens while largely ignoring the activist set that booed every conceivable solution and told civilians that the problems were in their heads. Lawsuits against the city proliferated. Polls showed city council members languishing on political death row, with approval ratings in the teens.
Though most residents still wanted accountability for bad cops and citizen oversight of the police bureau, the complaints were primarily about crime, about how the police hardly ever show up anymore, and about disorder dragging neighborhoods down. Even some of the fashionable middle-class neighborhoods endearingly satirized in the Portlandia comedy series were enduring weekly gunfire.
In the fall of 2022, 82 percent of Portland respondents in an Oregonian poll said that they wanted more cops. If some Portlanders felt overpoliced a few years ago, hardly anyone felt that way after the chaos, with a mere 15 percent saying that they wanted fewer officers in 2021.
Before the city council elections got going in 2022, voters fired repeated warning shots in public opinion surveys. An overwhelming 85 percent of respondents said that they found the city council ineffective, with a clear majority describing it as “very ineffective.” For a while, it looked as though Portland was gearing up to fire every single official in a landslide election.
Two city council members, Dan Ryan and Jo Ann Hardesty, ran for reelection last year. Ryan managed to defy expectations and win despite the temper in the city, though it’s easy to understand why: he set aside his ideological views and changed with the times. Though he first ran during a special election in early 2020 on a campaign promising to cut police funding, he soon reversed himself. Anarchists vandalized his home seven times because he refused to cut the police budget.
Hardesty didn’t fare as well. Pushing bills to defund the police and opposing the cleanup of homeless camps, she put herself wildly out of step with her constituents. Mingus Mapps, a moderate on the council who had easily dispatched the left-wing populist Chloe Eudaly two years earlier, endorsed Hardesty’s challenger, Rene Gonzales, and bluntly said: “It is time to put ideology aside and elect people who will fight for Portland. I need colleagues who use debate, reason, and logic to solve our many crises.” Gonzales said, “Our once beautiful city is struggling in ways that were unfathomable a short time ago. . . . City hall’s ineffective, ideologically driven policies are ruining the city we used to proudly call home.” Gonzales won, and Portland replaced the city council’s last progressive firebrand with a centrist. It was the kind of event that marks the end of an era.
Sounds a lot like Austin, except for the sobering-up part. (Also, it’s good to read Michael Totten again. He seemed to disappear from view for several years. Probably because he was writing for The Bulwark…)
Speaking of Portland, the homeless drug addict who said that living on the streets of Portland was “too easy” is now back with her family and getting treatment. They thought she was dead…
Remember the old Chapter 313 program Texas used to dole out incentives to favored companies to relocate to Texas? It’s back under a new name.
House Bill 5, which author State Rep. Todd Hunter (R–Corpus Christi) calls the “Texas Jobs, Energy, Technology, and Innovation Act,” would create a new statewide economic incentive program to replace the state’s controversial Chapter 313 program, which ended after lawmakers declined to renew it during the 2021 legislative session.
Although both the Republican Party of Texas and the Democrat Party of Texas oppose corporate handouts in their platforms, State Sen. Charles Schwertner (R–Georgetown), has said “the majority of the Legislature does see value in a job-creating, economy-growing incentive program.”
HB 5 was a priority of House Speaker Dade Phelan (R–Beaumont) and approved by a vote of 120-24 in the House and 27-4 in the Senate.
However, Jeramy Kitchen, executive director of Texans for Fiscal Responsibility told Texas Scorecard the new law is a “contradiction and nothing more.”
“On one hand, he is telling Texans that he wants to see historic property tax relief and the elimination of the property tax, or more specifically the school M&O portion of the property tax,” explained Kitchen. “Both of those are things that TFR supports and encourages the legislature to take action on.”
“His signing of House Bill 5 however, points to a contradiction, as it ultimately will do nothing more than burden those same individual property taxpayers he purports to provide historic relief to, as large qualifying corporations receive a property tax abatement under the guise of economic development,” said Kitchen.
Like Chapter 313, HB 5 allows businesses to apply for a 10-year abatement—or reduction—of school district property taxes, which the state pays instead. To receive an abatement, the business would have to show it plans to hire a certain number of employees earning above-average wages for its particular industry.
Unlike the previous incentive program, HB 5 requires not just the applicant and school district to agree to the abatement, but also the comptroller, governor, and a seven-member legislative oversight committee composed of lawmakers from the state House and Senate.
This committee would have the final say on approving proposed projects and would provide periodic recommendations to the Legislature regarding which types of projects should be considered.
The problem with the old program was that it let government use taxpayer money to pick winners from the politically connected. Abbott has wanted the restoration of his economic incentive “carrot” ever since it expired. The new law even creates another level of politicos for businesses to suck up to get tax rebate goodies, and I bet competition to get assigned to that new “oversite committee” will be fierce.
The old program probably did incentivize a few edge-case businesses to move to Texas who wouldn’t otherwise, but Texas’ low-tax, low-cost and business-friendly regulatory environment already provides plenty of incentives to move here, as evidenced by the fact that businesses kept relocating here even in their absence.
At least there’s one improvement in the new version: “After Chapter 313 received much criticism for its funding of “renewable energy” projects, which Texas Scorecard previously examined in an extensive investigation, lawmakers also blocked such industries from receiving taxpayer funding through HB 5.”
Taxpayers are better served by keeping their own money than theoretically enjoying the down-the-line economic benefits of government functionaries showering their money on corporate welfare for businesses willing to do the requisite sucking-up to political figures in order to get paid to move here.
I have an in-process post titled “League of the Boned” in embryonic form, which was going to be about how each country in the League has been screwed by deficit spending, high interest rates and endemic corruption. But there so much boning to write about, and so many members of the League, that I thought it best to split it up into individual posts.
First up is Turkey, not because it’s the most boned, but the one whose immediate boning is made more acute by recent events, namely Recep Tayyip Erdogan’s reelection.
Recep Tayyip Erdogan’s supporters are celebrating after Turkey’s long-time president won Sunday’s vote, securing another five years in power.
“The entire nation of 85 million won,” he told cheering crowds outside his enormous palace on the edge of Ankara.
But his call for unity sounded hollow as he ridiculed his opponent Kemal Kilicdaroglu – and took aim at a jailed Kurdish leader and the LGBT community.
The opposition leader denounced “the most unfair election in recent years”.
Mr Kilicdaroglu said the president’s political party had mobilised all the means of the state against him and he did not explicitly admit defeat.
International observers said on Monday that, as with the first round on 14 May, media bias and limits to freedom of expression had “created an unlevel playing field, and contributed to an unjustified advantage” for Mr Erdogan.
President Erdogan ended with just over 52% of the vote, based on near-complete unofficial results. Almost half the electorate in this deeply polarised country did not back his authoritarian vision of Turkey.
Ultimately, Mr Kilicdaroglu was no match for the well-drilled Erdogan campaign, even if he took the president to a run-off second round for the first time since the post was made directly elected in 2014.
But he barely dented his rival’s first-round lead, falling more than two million votes behind.
Snip.
The president admitted that tackling inflation was Turkey’s most urgent issue.
The question is whether he is prepared to take the necessary measures to do so. At an annual rate of almost 44%, inflation seeps into everyone’s lives.
The cost of food, rent and other everyday goods has soared, exacerbated by Mr Erdogan’s refusal to observe orthodox economic policy and raise interest rates.
The Turkish lira has hit record lows against the dollar and the central bank has struggled to meet surging demand for foreign currency.
“If they continue with low interest rates, as Erdogan has signalled, the only other option is stricter capital controls,” warns Selva Demiralp, professor of economics at Koc university in Istanbul.
Tiny problem: Strict capital controls tend not to work. By the standards of the Middle East, Turkey is fairly open and fairly modern, and getting around currency controls is one of the use cases that cryptocurrencies are ideal for.
Indeed, the currency problem is so severe that Turkey’s foreign currency reserves just turned negative.
The Turkish central bank’s net forex reserves dropped into negative territory for the first time since 2002, standing at $-151.3 million on May 19, as the bank – following Erdogan’s strict orders – scrambled to counter demand for hard currencies (USD, gold, crypto) ahead of Sunday’s runoff vote.
Forex demand in Turkey surged to record levels ahead of May 14 on companies’ and individuals’ expectations that the lira, which lost 44% in 2021 and 30% in 2022, will plunge after the vote (spoiler alert: those fears have been justified).
As we discussed last week, the central bank’s forex reserves have sagged in recent years due to costly market interventions and other efforts to cool forex demand. The bank’s net reserves dropped by $2.48 billion in the week to May 19, to their lowest level since February 2002. They have dropped $27.7 billion since the end of 2022, and were at negative $3 billion as of May 19. The net forex reserves would be even more negative if outstanding swaps, courtesy of foreign central banks and which stood at $33.50 billion on Wednesday, are deducted (as they should be since the CBRT will have to repay these at some point).
And while the endgame here is clear to all, few are willing to say it out loud for fear of retaliation by the Erdogan regime (no really, he has been known to throw people in jail for recommending a Turkish lira short); yet one bank which decided to double down on Goldman’s dire view of how it all plays out is Morgan Stanley, which in a note last week (available to pro subscribers in the usual place), wrote that the turkish lira plummeting to 28 by the end of the year, is likely in the cards (in our view, that’s a rather optimistic take since the lira is about to become the new Bolivar where soon new zeroes are added daily if not hourly).
This is, I think, a bit of an exaggeration, since Turkey is a much bigger and more important country (and economy) than Venezuela, and while they’ve done several terribly stupid things with their economy, they haven’t gone full socialist starvation scenario on it.
The biggest concern when Erdogan came to party was his Islamist roots, and how he dismantled Turkey’s own peculiar systems of checks and balances, namely that anytime the government would move too far in an Islamist direction, the military would step in, depose the current government, rule for a while, and then step down once things had calmed down again. That doesn’t look very much like classic western democracy, but it served well enough for Turkey, partially insulating it from the wild swings between different despots common in the rest of the Islamic world.
The bad news is that Erdogan demolished those checks and balances in his drive to centralize power in his own hands, purging the military of anyone he thought might possibly oppose him. The good news is that, after all that, he turned out to mostly be a typical Middle Eastern strongman rather than a fervent jihadi. The bad news is that he’s also a complete economic ignoramus, and his stupidity is making Turkey’s economic problems much worse.
Here Patrick Boyle explains just how stupid:
On Erdogan’s idea that low-interest rates can cure inflation: “The official annual inflation rate in Turkey was 43.7% as of April. This is actually down from the 80% inflation rate that Turkey saw the prior year. There is no guarantee that this slowdown will persist. There is in fact widespread suspicion that the official numbers understate an inflation rate that according to independent experts is actually closer to 100%.”
The February earthquakes didn’t help.
“Another term for President Erdoğan would likely imply a continuation of the current policies with a heightened risk of persistent very high inflation and severe currency pressures.”
“The high inflation, along with government largess and efforts to prop up the currency are threatening economic growth and could push the country into a deep recession.”
The Lira is trading near record lows against the dollar.
“Net foreign assets, a proxy for the size of Turkey’s foreign currency holdings, have declined to minus $13 billion dollars from $1.4 billion dollars a year ago, according to central bank data.”
“Those figures include billions of dollars in funds borrowed from the domestic banking system through swaps. Pressure on international reserves has been ‘significant in recent weeks’ as the government made efforts to prop up the economy ahead of Sunday’s elections.”
“Turkey’s foreign currency and gold reserves tumbled $17 billion dollars in the six weeks leading up to the first round of the election according to the FT, a decline of 15 percent.”
“Turkey had a painful experience of high and chronic inflation from 1975 through to 2004 caused by political instability, poor institutions, high public sector budget deficits and depreciation of the Turkish Lira which culminated in a severe financial crisis in 2000-2001.”
“The establishment of an independent central bank in 2001, which focused mainly on fighting inflation along with tight fiscal policies implemented at the same time brought inflation under control.”
“During his election campaign, Erdogan showed no intention of changing his policies, doubling down on his claims that low interest rates would help the economy grow by providing cheap credit to increase Turkish manufacturing and exports. ‘You will see as the interest rates go down, so will inflation’ he told supporters in Istanbul in April.”
With the cost-of-living crisis on many voters’ minds, Erdogan launched a range of expensive policies in the lead up to the election aimed at reducing the immediate impact of inflation on voters. He raised the minimum wage repeatedly, announced a free month of natural gas for consumers, reduced electricity prices increased civil servant salaries and changed government policies to allow millions of Turks to receive early government pensions. Just days before the first round of the election He gave a 45% pay rise to 700,000 Turkish public sector workers, saying he would “not let anyone be crushed by inflation”.
So he combated inflation by guaranteeing there would be more inflation, just like Joe Biden.
Boyle thinks Turkeys problems can be solved by adopting sane economic policies. “For a country in crisis, Turkey’s problems are not that difficult to solve – it is not a total basket case economy like some other emerging markets. The country mostly just needs a sensible interest rate policy and an independent central bank. Turkey has a lot of positives, it has a diversified economy, growth is good, it has good demographics and an educated workforce.”
This is true, but it was also true before Erdogan got into power and screwed things up. Peter Zeihan thinks that Turkey has the right mix of geography and demographics to be a future regional power. But there’s an awful difficult present to get through before that happens…
Californians continue to flee the no-longer golden state, and many of them end up in Texas. ABC7 News in the bay area interviewed eight who fled as to why California dreaming has become a nightmare.
Some takeaways:
“In the span of two years, California’s population has dropped by more than a half million people.”
“I was assaulted twice on the BART.”
“I’ve never had a house this large in my life.”
“It is definitely a lower cost of living in Texas.”
“The home that I once remembered and knew back in the 1980s and the 1990s, a lot of that’s gone now.”
“Home prices are lower [in Texas], and there’s plenty of job opportunities.”
The former mayor of Ventura, CA moved to Texas in 2014. “One of the things I greatly fear about Venture and elsewhere in coastal California is that it’s not a place for everybody anymore, and especially not a place for young families. It’s a place basically where older, affluent people now live. And I think something has really been lost there.”
“Home prices in Texas cost less than half of homes in California. U.S. Census Bureau numbers show that the middle and lower classes are leaving California at a higher rate than the wealthy.”
“Many who have left in recent years say they simply couldn’t afford to stay.”
A mother with six kids says it’s simply impossible to afford a house large enough in California. “I feel like the California Dream was the American Dream in my grandparents’ and parents’ era. That’s just not possible for our generation to live that American Dream in that state anymore. It’s so expensive that you’re struggling every month just to get by and pay your rent and your mortgage and put food on the table.”
Food truck owner: “The reason why I left California, honestly, is just the cost. The cost of living, the cost of running a business, regulations.”
Mention of the Move to Texas Facebook group for Californians looking to get the hell out of their failing state.
“Some people are moving to Texas because of their conservative values.”
” It seems that the environment, politically in California, has just been a one-party rule. Republicans have done absolutely nothing to change anything in any way, it seems to me. They’ve been cowardly about it.”
“It’s very sad in Contra Costa County. You can’t even be conservative. You kinda have to hide if you’re conservative almost.”
Man whose family moved to California from South Korea in the 1970s: “Unfortunately my parent’s grocery stores were burned down in the L.A. riots, two of them, near Koreatown. And so that was, you know, quite a traumatic experience for my family.”
“I definitely think [California] is mismanaged. We moved primarily because of the crime. And, for me, it was not only the crime but also, you know, the amount of homelessness, needles. I was assaulted twice on the BART. Those particular assaults I really do think it had to do with the same kind of violence that I saw in the Bay Area towards Asian Americans.”
“I miss the ocean but not enough to move back.”
What would it take to move back to California? “Number one, the whole state would have to clean up. Get some of those rotten politicians. Be tough on crime again, like you should. People’s attitudes would just have to change. But for the most part, I really am happy here.”
“My commute is seven minutes to work.”
“Yeah, we definitely have not even contemplated moving back. We are just really happy out here.”
One party Democratic rule has hollowed out the state of California, and the people Democrats used to claim to represent (the working poor and the middle class) are the ones most harmed by the graft, corruption, incompetence, and radical social justice-engendered spiraling crime rates.
Until that changes, expect people to continue to flee California.
