Dr. Gal Luft, the “missing witness” from the Biden corruption investigation, told the NY Post last week that he was arrested in Cyprus to stop him from testifying in front of the House Oversight Committee that the Biden family received payments from individuals linked to Chinese military intelligence, and that they had an FBI mole who shared classified information with the Biden benefactors from the China-controlled energy company CEFC.
“I told the DOJ that Hunter was associated with a very senior retired FBI official who had a distinct physical characteristic—he had one eye,” Luft said.
That FBI official is widely believed to be former FBI Director Louis Freeh, who gave $100,000 to a trust for two of then-Vice President Joe Biden’s grandchildren in 2016 shortly before telling Hunter, “I would be delighted to do future work with you.”
Now, Biden’s DOJ has charged Luft with failing to register under the Foreign Agents Act (FARA), as well as Iranian sanctions violations. He’s alleged to have conspired with others to act in China’s interest, including recruiting and paying a former high ranking U.S. government official to support policies beneficial to China.
Democrats are turning the federal justice apparatus into banana republic keystone cops to hide their own crimes.
Speaking of Hunter: “How reckless Hunter Biden photographed himself driving at 172mph while behind the wheel of his Porsche en route to a days-long Vegas bender with prostitutes and pictured himself smoking CRACK while behind the wheel.” No doubt left-wingers will crow about how Hunter is “living his best life.” (Hat tip: Ed Driscoll at Instapundit.)
Federal judge blocks Biden’s censorship schemes. “Terry Doughty, a Louisiana federal judge, issued a preliminary injunction Tuesday blocking certain federal agencies and officials, including the FBI and the Department of Health and Human Services, from communicating with social-media platforms.” Good.
“When I decided to stand up on behalf of disadvantaged children in support of school choice, my Democrat colleagues didn’t stand by me,” [Georgia State House Rep. Mesha] Mainor explained of her decision in a statement to Fox News Digital. “They crucified me. When I decided to stand up in support of safe communities and refused to support efforts to defund the police, they didn’t back me. They abandoned me.”
“For far too long, the Democrat Party has gotten away with using and abusing the black community,” she added. “For decades, the Democrat Party has received the support of more than 90% of the black community. And what do we have to show for it? I represent a solidly blue district in the city of Atlanta. This isn’t a political decision for me. It’s a moral one.”
Remember how Turkey was blocking Sweden’s membership in NATO? Well, they’ve now flipped to backing Sweden’s membership.
Turkey’s President Recep Tayyip Erdogan has agreed to support Sweden’s bid to join Nato, the military alliance’s chief Jens Stoltenberg says.
He said the Turkish leader would forward Sweden’s bid to parliament in Ankara and “ensure ratification”.
Meanwhile, Swedish Prime Minister Ulf Kristersson said: “I am very happy, it is a good day for Sweden.”
Turkey had previously spent months blocking Sweden’s application, accusing it of hosting Kurdish militants.
As one of Nato’s 31 members, Turkey has a veto over any new country joining the group.
Reacting to the news, US President Joe Biden said he welcomed the commitment by President Erdogan to proceed with “swift ratification”.
“I stand ready to work with President Erdogan and Turkey on enhancing defence and deterrence in the Euro-Atlantic area. I look forward to welcoming Prime Minister Kristersson and Sweden as our 32nd Nato ally,” a White House statement said.
German Foreign Minister Annalena Baerbock tweeted: “At 32, we’re all safer together.” British Prime Minister Rishi Sunak said Sweden joining would “make us all safer”.
Mr Stoltenberg announced the agreement late on Monday following talks between the Turkish and Swedish leaders in the Lithuanian capital Vilnius.
The Nato chief described it as a “historic step”, but stressed that a “clear date” could not be given for when Sweden would join the military alliance – as this relied on the Turkish parliament.
Sweden and its eastern neighbour Finland, both long considered as militarily neutral, announced their intention to join Nato in May last year, several months after Russia launched its full-scale invasion of Ukraine. Finland formally joined in April.
Why the sudden turnaround on Sweden’s membership?
For one thing, they’re getting F-16s out of the deal. For another, Erdogan is pushing for EU membership again, and needs all the friends he can get if he wants to stop Turkey’s disasterous economic slide. Turkey is hemorrhaging foreign currency reserves thanks to Erdogan’s SuperGenius economic move of lowering interest rates to flight inflation, so maybe a promise of closer ties to Europe might staunch the bleeding a little.
It could also be Turkey’s age-old enmity with Russia coming to the fore. Or maybe Russia’s poor performance has finally led Erdogan to conclude that Russia is the “weak horse.”
But it’s not just Sweden: Erdogan also indicated approval for Ukraine joining NATO as well. “‘There is no doubt that Ukraine deserves membership of NATO,’ Erdogan told a joint press conference with the Ukrainian president in Istanbul early on Saturday, adding that the two sides should go back to peace talks.”
NATO leaders said on Tuesday that Ukraine should be able to join the military alliance at some point in the future but they stopped short of offering Kyiv an immediate invitation, angering Ukrainian President Volodymyr Zelenskiy.
The leaders were meeting at a summit in the Lithuanian capital Vilnius as Ukrainian troops struggled to make significant gains in a counteroffensive against the Russian invasion forces occupying parts of the country.
The leaders said in a declaration: “Ukraine’s future is in NATO”. But they offered no timeline for the process.
“We will be in a position to extend an invitation to Ukraine to join the alliance when allies agree and conditions are met,” the declaration said, without specifying the conditions Ukraine needs to meet.
I’m sure one of the conditions is “Not having Russia occupying large parts of your country.”
Russia’s illegal war of territorial aggression has made the alliance more united than any time since the end of the Cold War. Clearly it’s in every NATO member’s interest to let Russia dash 50 years worth of Russo-Soviet miltech against the rock of Ukraine, so expect members of the alliance to keep feeding Ukraine’s armed forces for the immediate future.
But having a direct military conflict with a nuclear-armed Russia isn’t on anyone member’s preference card, no matter how badly NATO armies would maul their Russian counterparts. So don’t expect NATO membership for Ukraine until the Russo-Ukrainian War concludes.
The Europhilic, farmer-oppressing, climate cult-believing government of The Netherlands has fallen over immigration policies.
The Dutch government collapsed on Friday after failing to reach a deal on restricting immigration, which will trigger new elections in the fall.
The crisis was triggered by a push by Prime Minister Mark Rutte’s conservative VVD party to limit the flow of illegal immigrants to the Netherlands, which two of his four-party government coalition refused to support.
“It’s no secret that the coalition partners have differing opinions about immigration policy. Today we unfortunately have to conclude that those differences have become insurmountable. Therefore I will tender the resignation of the entire cabinet to the king,” Mr. Rutte said in a televised news conference.
Tensions came to a head this week, when Mr. Rutte demanded support for a proposal to limit entrance of children of war refugees who are already in the Netherlands and to make families wait at least two years before they can be united.
This latest proposal went too far for the small Christian Union and liberal D66, causing a stalemate.
Mr. Rutte’s coalition will stay on as a caretaker government until a new administration is formed after new elections, a process which in the fractured Dutch political landscape usually takes months.
News agency ANP, citing the national elections committee, said elections would not be held before mid-November.
Opposition parties in the Netherlands were pleased with the fall of the Rutte IV Cabinet. BBB frontwoman Caroline van der Plas tweeted a photo of herself smiling asking others to show the face they made when they heard the news.
“Goodbye Rutte, Kaag and the rest!” writes PVV leader Geert Wilders. He said he has requested a parliamentary debate.
PvdD leader Esther Ouwehand hopes for “the definitive end of the Rutte era.” She said, “Unprecedented that the prime minister created a new crisis in an attempt to save his own skin.”
Rutte’s government is the one that tried to seize land from farmers to prevent them from farming as part of their global warming/anti-meat/land seizure agenda. That government deserved to fall. Actually, what it deserved was having angry farmers armed with torches and hay rakes track members down in the streets and thrash them within an inch of their lives, but the Dutch haven’t been much in the revolution business since 1648.
From this remove, it would be nice if the elections could pave the way for a BBB/PVV Euroskeptic coalition focused on property rights, abandoning insane climate change mandates, restricting Islamist immigration, and protecting free markets and free speech. But European politics seldom proceeds along such (to us) logical lines.
Another half year gone. In one way, it seems impossible that it’s flown by so quickly. In another, I certainly feel tired enough for that, and then some…
There’s a zillion Biden corruption links I could have added to this week’s LinkSwarm, so feel free to share your favorites in the comments.
U.S. Attorney David Weiss wanted to bring charges against President Joe Biden’s son Hunter Biden in Washington, D.C., IRS whistleblower Gary Shapley said on Friday — and when he was reportedly barred from doing so, he told six witnesses.
Shapley testified on the matter last month, telling the House Oversight Committee that Weiss revealed in an October 2022, meeting that he had actually wanted to charge Hunter Biden in two federal districts but that he had been denied — and when Attorney General Merrick Garland denied that had ever happened, Shapley publicly named the witnesses he said Weiss had told.
“He surprised us by telling us on the charges, ‘I’m not the deciding official on whether charges are filed,’” Shapley told the committee when he testified in late May. “He then shocked us with the earth-shattering news that the Biden-appointed D.C. U.S. Attorney Matthew Graves would not allow him to charge in his district.
Shapley explained that by not allowing Weiss to file charges in D.C., Graves had effectively barred Weiss from seeking charges on crimes allegedly committed during 2014 and 2015 — including “foreign income from Burisma [Holdings] and a scheme to evade his income taxes through a partnership with a convicted felon … The purposeful exclusion of the 2014 and 2015 years sanitized the most substantive criminal conduct and concealed material facts.”
It was at that same meeting in October 2022 that Weiss said his request for special counsel authority had been denied, Shapley said. He was instead told to go through the regular process — which would have once again pitted him against a Biden-appointed U.S. Attorney.
The Supreme Court ruled Thursday that the race-conscious admissions policies of Harvard University and the University of North Carolina at Chapel Hill violate the Equal Protection Clause of the 14th Amendment.
“The Harvard and UNC admissions programs cannot be reconciled with the guarantees of the Equal Protection Clause. Both programs lack sufficiently focused and measurable objectives warranting the use of race, unavoidably employ race in a negative manner, involve racial stereotyping, and lack meaningful end points. We have never permitted admissions programs to work in that way, and we will not do so today,” wrote Chief Justice John Roberts for the six-justice majority.
However, universities may still consider an applicant’s discussion of how race affected his or her life, be it through discrimination, inspiration, or otherwise. Roberts clarified that this does not mean universities can simply establish through application essays or other means the regime declared unlawful by the Court. It means, explained Roberts, “the student must be treated based on his or her experiences as an individual—not on the basis of race.”
Of course our elite liberal institutions are furious, since they desperately want to discriminate the basis of race.
Paragraph 2: National Geographic magazine (now owned by Disney) laid off its last remaining staff writers. Paragraph 14: “Among those who lost their jobs in the latest layoff was Debra Adams Simmons, who only last September was promoted to vice president of diversity, equity and inclusion at National Geographic Media.” Usually it takes longer for DEI to destroy a company… (Hat tip: Stephen Green at Instapundit.)
Speaking of Disney disasters, Indiana Jones and the Dial Up Internet of Depravity: “What a fucking incomprehensible calamity of a film this is. I mean, I’d be lying if I said I went into it expecting great things, but Jesus Fucking Mother of Christ, this was worse than anything I could have imagined.”
“7 Simple Ways To Get Away With A Massive Foreign Bribery Scheme.” “Get one of your immediate family members elected to a powerful office: Like your father, for one completely random example.”
I’ve covered Peter Zeihan videos on China’s crashing demographics before. We already knew China was “the fastest aging society in human history, with the largest sex imbalance in human history.” Now he’s dug into new some new data.
It’s much worse than he thought.
“We’ve gotten some new data out of the Chinese that has made it way to the U.N, and so the updates have allowed us to update our assessment, and oh my God, it’s bad.”
“Here is the new data, and as you can see, the number of children who are under age 5 has just collapsed, and they’re now roughly twice as many that are age 15 as age 5.”
“What happened back in 2017, well before Covid, is that we had a sudden collapse in the birth rate, roughly 40% over the next five years among the Chinese, the ethnic Han population, and more than 50 percent among a lot of the minorities. And that is before Covid, which saw anecdotally the birth rate drops considerably more.”
“We’re never going to get good data on death rate, or at least not anytime soon, because the Chinese, when they did the reopening, just stopped collecting the data on deaths and Covid and everything because they didn’t want the world to know how many Chinese died, so they don’t know.”
And if you look at the data from the Shanghai Academy of Science, it’s even worse than the official state numbers.
“China aged past the point of demographic no return over 20 years, ago and it wasn’t just this year that India became the world’s most populous country, that probably happened roughly a decade ago. And it wasn’t in 2018 that the average Chinese aged past the average American, that was probably roughly in 2007 or 2008.”
“This is not a country that is in demographic decay, this is a country that is in the advanced stages of demographic collapse. And this is going to be the final decade that China can exist as a modern industrialized nation state, because it simply isn’t going to have the people to even try.”
“Labor costs you’re having now or as low as they’re ever going to be. Consumption is as high as it’s ever going to be.”
“So even before you consider the political complications or issues with operating environment or energy access or geopolitical risk or regulational risk, the numbers just aren’t there anymore so you have to ask yourself why you’re still there.”
Add to that the fact that China economy is probably overstated by 60%, and it looks like China’s brief days in the sun are already over.
he 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.
In a sign of how seriously the Kremlin was taking the threat, security was heightened in Moscow and in Rostov-on-Don, which is home to the Russian military headquarters for the southern region and also oversees the fighting in Ukraine.
While the outcome of the confrontation was still unclear, it appeared likely to further hinder Moscow’s war effort as Kyiv’s forces were probing Russian defenses in the initial stages of a counteroffensive.
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.”
“But we will destroy anyone who stands in our way,” he said in one of a series of angry video and audio recordings posted on social media beginning late Friday. “We are moving forward and will go until the end.”
He claimed that the chief of the General Staff, Gen. Valery Gerasimov, scrambled warplanes to strike Wagner’s convoys, which were driving alongside ordinary vehicles. Prigozhin also said his forces shot down a Russian military helicopter that fired on a civilian convoy, but there was no independent confirmation.
And despite Prigozhin’s statements that Wagner convoys had entered Rostov-on-Don, there was no confirmation of that yet on Russian social networks. Videos showed heavy trucks blocking highways leading to the city, long convoys of National Guard trucks were seen on a road outside Rostov-on-Don and armored vehicles were roaming the streets.
Prigozhin said Wagner field camps in Ukraine were struck by rockets, helicopter gunships and artillery fire on orders from Gerasimov following a meeting with Defense Minister Sergei Shoigu, at which they decided to destroy Wagner.
Seems insane on the surface, but people are bandying about the idea that 97% of the Russian army is invested in Ukraine.
"The Head of General Staff is not calming down: a mistake of any African dictator is to deal air strikes at civilian areas. Right now in the air are two planes numbered 523 and 546 that are trying now to deal these strikes.
Update 3: Random non-coup observation: Reporting from Ukraine hasn’t updated in two days. I don’t treat that guy as gospel, but I don’t think he’s missed a posting day since shortly after the war began.
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…
Finland’s newly elected parliament on Tuesday voted in favour of National Coalition Party leader Petteri Orpo to become prime minister, as widely expected, ushering in a right-wing government and ending Social Democrat Sanna Marin’s rule.
Orpo will lead a coalition of the conservative NCP, the nationalist Finns, the minority-language Swedish People’s Party and the Christian Democrats, which together won a majority of parliamentary seats in the April 2 election.
The new finance minister will be Riikka Purra, head of the eurosceptic Finns Party, while the NCP’s deputy leader Elina Valtonen will become foreign minister when the government takes office later on Tuesday.
“I warmly thank you for the confidence you’ve shown me,” Orpo told parliament shortly after the vote.
A self-styled fiscal conservative, Orpo campaigned on a promise to reduce the government’s budget deficit by cutting spending while also reducing taxes and seeking to boost private sector job creation.
The new coalition also shifts immigration policy to the right, aiming to cut refugee quotas, raise the bar for work-based visas and make it more difficult for foreigners to obtain citizenship, key priorities for the Finns Party.
Orpo is hardly a bomb-thrower, with previous stints on the boards of the European Investment Bank and the European Stability Mechanism, which are embedded very deep inside the EU’s deep state. Nor will Finland’s new coalition be mistaken for the second coming of Ronald Reagan.
But time and time again we’re told that the EU policies (just like Social Justice policies in the U.S.) are popular, while time and time again EU member states elect government that oppose many of those policies, especially those favoring unlimited Muslim immigration into member countries.
Finally, those who assert that Euroskeptacism goes hand in hand with appeasing Russia will find that they’re mistaken, as Orpo backed Ukraine and Finland joining NATO.
For Finland Russia’s proximity is a key geostrategic fact, and the war in Ukraine indicates how the problems associated with Russia’s aggressive behaviour have materialized. Russia is defining its interests in a way that threatens peace in Europe and creates insecurity in others. During the past decade, there have been uprisings in several of Russia’s neighbors, which the Kremlin has sought to violently suppress. Russia seeks a new sphere of influence and wants to halt the democratic development of other countries. Not NATO, but the people’s will to decide for themselves seems to be a threat to Putin’s regime.
Finland’s new government, like the old, is firmly in the NATO camp. Funny how fighting the Soviet Union/Russia repeatedly throughout the 20th Century will do that…
Independent journalist Wayne Dolcefino alleges that Lina Hidalgo’s hand-picked election coordinator Clifford Tatum deliberately shorted paper ballots to Republican precincts.
“If you’re a Democrat, you didn’t like the KHOU investigation that cites more than 120 locations that were under supplied with ballot paper, while millions of ballot sheets were available in a warehouse.”
Lots of precinct judges, of both parties, testified that locations ran out.
“It’s not just ballot paper problems. Election judges reported 119 polls, nearly 15%, that didn’t open up on time on election morning. Late in the day, a district judge ordered that polls stay open until 8 PM, but a lot of election judges either didn’t get the message, or didn’t care when they did. 64 polls closed at 7 PM even after the judge’s order.”
“It should force judge Hidalgo to release all remaining public records.”
Of course, she’s waging a lawsuit to prevent just that…
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…
