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New Medical Codes For COVID-19 Vaccination Status Used To Track People, CDC Confirms

New Medical Codes For COVID-19 Vaccination Status Used To Track People, CDC Confirms

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

Medical codes introduced during the COVID-19 pandemic to show when people are unvaccinated or undervaccinated for COVID-19 are being used to track people, the top U.S. public health agency has confirmed.

The U.S. Centers for Disease Control and Prevention (CDC) made the confirmation in emails that The Epoch Times obtained through a Freedom of Information Act request.

The CDC had said in documents and public statements that the goal of the new codes, in the International Classification of Diseases (ICD) system, was “to track people who are not immunized or only partially immunized.”

The CDC now says it does not have access to the data, but that health care systems do.

“The ICD codes were implemented in April 2022, however the CDC does not have any data on the codes and does not track this information,” CDC officials said in the emails.

The codes were created to enable healthcare providers to track within their practices,” the officials added.

The emails were sent to news outlets. The CDC has not answered queries from The Epoch Times about the codes, which the CDC added to the U.S. ICD system in 2022.

One of the emails from the CDC regarding the new medical codes. (CDC via The Epoch Times)

 How Providers Are Using the Codes

The CDC proposed the codes in 2021. “There has been interest expressed in being able to track people who are not immunized or who are only partially immunized,” Dr. David Berglund, a CDC medical officer, said during a meeting about the proposal.

One code is for being “unvaccinated for COVID-19.” Another is for being partially vaccinated, or not having received a primary series of a COVID-19 vaccine.

In comments to the CDC about the proposal, health care providers said they supported adding the codes—with some detailing how they’d be used.

Identifying people who are unvaccinated or undervaccinated for COVID-19 “will help health insurance providers identify emollees [sic] who may benefit from outreach and further education about vaccination,” Danielle Lloyd, a senior vice president at America’s Health Insurance Plans (AHIP), and Adam Myers, senior vice president at the Blue Cross Blue Shield Association, said in a joint letter to the CDC.

Creating ICD-10 codes that can be tracked via claims would provide health insurance providers key information to help increase immunization rates,” they added.

In another missive, Nancy Andersen, a director with Kaiser Permanente Health Plan and Hospitals, and Erica Eastham, executive director at The Permanente Federation LLC, told the CDC: “These codes provide valuable data for understanding immunization rates and for follow-up with under-immunized patients.”

Andersen and Eastham urged the CDC to advise providers entering one of the new codes to also enter an additional code indicating why a person was unvaccinated or undervaccinated, with reasons including due to a contraindication or due to “belief or group pressure.”

The comments were obtained by The Epoch Times through the Freedom of Information Act.

Most of the providers and other health care groups, including the American Health Information Management Association (AHIMA) that commented did not respond to inquiries.

AHIP declined to say what education it offered to people tracked through the new codes. A spokeswoman pointed to a Feb. 28, 2022, article that outlines steps providers have taken to promote vaccination.

The codes are part of the ICD’s 10th edition. The World Health Organization of the United Nations holds the copyright for ICD-10 but has allowed the U.S. government to adopt the edition, according to the CDC. The new codes are not part of the World Health Organization’s ICD.

All health care entities covered by the Health Insurance Portability and Accountability Act must use the U.S. version of the ICD. The U.S. version is updated at least once a year. Coded ICD data from providers enable public health officials to “conduct many disease-related activities,” according to the CDC. Purposes include enabling a doctor seeing a new patient to easily retrieve the patient’s medical history.

Read more here…

Tyler Durden
Fri, 04/07/2023 – 22:30

“Explosive Growth”: Nashville, Austin Job Markets Are Hot, Hot, Hot

“Explosive Growth”: Nashville, Austin Job Markets Are Hot, Hot, Hot

The sunbelt cities of Nashville, Tennessee, Austin, Texas and Jacksonville, Florida are among the hottest job markets in the country right now, according to an assessment of 380 metro areas conducted by the Wall Street Journal and Moody’s Analytics.

Nashville, TN

Those Sunbelt cities benefited from a continued recovery in travel and a hiring boom at restaurants, hotels and music venues, consistent with the resurgent services sector driving the U.S. economy in recent months. Many remained relatively affordable as high inflation gripped the nation. Meanwhile, some Western job markets that heated up after the pandemic took hold—including Salt Lake City, Phoenix and Denver—cooled last year.  -WSJ

The rankings were based on five factors; the unemployment rate, labor-force participation rate, how employment levels have changed, the size of the labor force, and 2022 wages – all of which were used to determine the strongest labor markets in the country.

Last year and into 2023, employers added jobs across the country, while the unemployment rate hit a 53-year low of 3.4% in January, which ticked up to 3.6% in February.

Screenshot via WSJ.com

Contributing to the #1 spot for Nashville as the nation’s hottest job market is the labor-force participation rate, which ranked #3 in terms of the share of adults working or looking for jobs. Austin came in at #2, touting the strongest labor-force participation among large metro areas.

These fast-growing Southern state capitals with vibrant music scenes have drawn in many new workers and companies in recent years. Investment firm AllianceBernstein LP opened its new corporate headquarters in Nashville last year. Elon Musk’s electric-car maker Tesla Inc. moved headquarters to Austin in 2021, and he is laying plans for a new community outside of Austin, next to facilities of Boring Co. and SpaceX, two other companies he controls.

Jacksonville edged up in the rankings last year, becoming the third-hottest job market, after placing sixth a year earlier based on revised 2021 data. The region, positioned as a logistics hub in northern Florida, has been a magnet for remote workers and new companies during the pandemic, said Mike Brady, owner of two Express Employment Professionals staffing offices in Jacksonville. Affordable homes and Florida’s lack of state income tax are two big contributors, he said. -WSJ

“There has been explosive growth,” said Brady. “We’re still seeing warehouses being built. We’re still seeing companies move in.”

According to Brady, the surge in demand has been hard to meet.

“If we place somebody on a job, and they don’t like the job, then they will just simply go to another job,” he said.

In Jacksonville, FL, employers are hiking wages – causing the city’s weekly wages to grow at the fourth-fastest rate of any large metro area in 2022. Miami, meanwhile, logged the nation’s largest wage gains, according to the report.

Jacksonville, a logistics hub in northern Florida, became a magnet for remote workers and new companies during the pandemic.Photo: Visions of America/Universal Images Group/Getty Images

What’s more, the cost of living is relatively (emphasis on ‘relatively’) low compared to many coastal cities competing for tech and finance workers. That said, costs are rising – particularly housing costs, in several major Sunbelt  cities.

If current trends persist, Dallas, Texas is set to surpass Chicago as the 3rd largest metro area in the US by 2040.

Other cities which made notable gains in this year’s rankings include New Orleans, Orlando and Las Vegas, where more workers returned to the labor force last year – filling job vacancies at restaurants, bars and hotels. As the Journal notes, “In the U.S. as a whole, employers in leisure and hospitality have been on a hiring spree, driving a surprisingly resilient labor market in the face of rising interest rates and high inflation.”

Meanwhile, New York was among ‘the few large metros’ which lost workers from its labor force last year, while Los Angles experienced above-average unemployment and below-average wage growth.

Tyler Durden
Fri, 04/07/2023 – 21:55

Liberal Outrage After Abortion Pill Blocked Nationwide By Order From Texas Judge

Liberal Outrage After Abortion Pill Blocked Nationwide By Order From Texas Judge

In a decision which the liberal media called an “unprecedented” decision, late on Friday a federal judge in Texas issued an order that will shut down the prescription and distribution of mifepristone in seven days, one of two drugs used for medication abortions that has been on the market in the U.S. for more than two decades. However, it wasn’t immediately clear if it was the decision that was unprecedented, or that a member of the judicial branch did something that wasn’t immediately prompted by generous funding from George Soros.

The preliminary injunction – which suspends the US government’s decades-old approval of the key drug used in medication abortion – was issued by US District Judge Matthew Kacsmaryk, an appointee of President Donald Trump, could soon end the sale and distribution of mifepristone, used as part of a two-pill regimen to terminate a pregnancy within the first 10 weeks, while a lawsuit seeking a more permanent ban on the drug proceeds.

The FDA can appeal the decision and Kacsmaryk’s order will not go into effect for seven days, giving the Biden administration time to appeal his decision to the New Orleans-based 5th US Circuit Court of Appeals, which is considered one of the most conservative courts in the country.

And confirming that the US judicial system is now terminally broken and is no longer blind but divided into left and right “justice”, Kacsmaryk’s ruling was almost immediately followed on Friday by a decision by a federal judge in Washington state – US District Judge Thomas Rice, an appointee of President Barack Obama – who granted a request by several Democratic-leaning states for an order affirming FDA approval of mifepristone and blocking the government from further restricting its distribution.

Religious groups and anti-abortion advocates targeted the FDA – whose credibility was already torn to shreds after the whole “covid thing” – in a November lawsuit claiming the agency fast-tracked approval of mifepristone in 2000 without sufficient scientific evidence, something the agency certainly did with various covid “vaccines” meant not to protect the population but to enrich a handful of pharma execs.

Medical groups have defended the medication, arguing that studies show it is safer than Tylenol and Viagra and sends fewer people to the emergency room than those drugs. Abortion rights supporters have decried the lawsuit as politically motivated and not based in science.

Kacsmaryk, who sits in Amarillo, Texas, said it was clear that the FDA overstepped its authority when it first approved mifepristone for use and suggested that the agency “faced significant political pressure” to advance the drug.

“The Court does not second-guess FDA’s decision-making lightly,” Kacsmaryk said in his decision. “But here, FDA acquiesced on its legitimate safety concerns — in violation of its statutory duty — based on plainly unsound reasoning and studies that did not support its conclusions.”

The judge said the FDA’s stance had likely lead to death and injury among women taking the drug. “Whatever the numbers are, they likely would be considerably lower had FDA not acquiesced to the pressure to increase access to chemical abortion at the expense of women’s safety,” Kacsmaryk wrote.

If the ruling is not blocked by the conservative 5th Circuit, women seeking to end pregnancies will be left with two options: surgical abortion or a single pill called misoprostol, which is less effective when not used in combination with mifepristone. The latest data shows that 98% of medication abortions that occur in the US use the two-pill method, according to the Guttmacher Institute.

The high-profile Amarillo case has drawn focus from advocates on both sides of the issue, as well as health professionals and medical associations who have been bracing for a ruling on the temporary order for weeks. Dozens of states and advocacy organizations have filed briefs with the court, arguing for or against the order.

As Bloomberg notes, the abortion pill ruling isn’t Kacsmaryk’s final word on the case, with many court filings and a possible trial to come. But the injunction reflects his judgment that the plaintiffs are likely to succeed on the merits, among other factors.

Anti-abortion groups expected Kacsmaryk to be favorable to their case. Lawyers for the conservative religious-rights groups suing FDA chose to sue in Amarillo, where they were all but assured to get Kacsmaryk, who is assigned all civil and criminal cases. In December, Kacsmaryk tossed out a federal rule that aimed to expand teen access to birth control. In November, he rejected a federal policy that stopped doctors from discriminating against people based on their sexual orientation or gender identity.

The conservative group behind the lawsuit argues that the agency didn’t follow the appropriate protocol when it first authorized the use of mifepristone in 2000 and failed to study the safety of the drugs as required, putting “politics over science.”

FDA officials have refuted that characterization in public statements and court filings, arguing that the agency followed procedure when approving the medication and “extensively reviewed” the scientific evidence at hand to determine its safety and efficacy.

Mifepristone was first approved in 2000 for use through the first seven weeks of pregnancy. In 2016, the FDA extended that window to 10 weeks. It is the first pill used in the two-drug regimen most used to terminate a pregnancy and blocks a hormone called progesterone that is needed to support a pregnancy. It is followed by misoprostol, which prompts contractions that expel the contents of the uterus.

Kacsmaryk’s decision comes as the federal government has taken steps to loosen restrictions on abortion pills, allowing authorized pharmacies to dispense the pills instead of limiting their distribution to doctor’s offices. But Republican leaders of states with abortion restrictions have push backed against the new regulations, filing lawsuits and drafting letters to major drugstore chains to ensure the drugs cannot be dispensed at stores in their states or mailed to their residents.

A group of 21 Republican attorneys general urged Kacsmaryk to rescind FDA approval of the abortion pill prior to his decision, writing in a court filing that the agency under President Joe Biden has sought to establish a “mail-order abortion regime” that bypasses state limitations on the procedure.

“The FDA and the administration as a whole have no intention to respect the Constitution,” they wrote.

Outcry against the order was immediate with various leftist politicians and organizations vowing to fight the ruling.


And, as expected, a few hours after the Texas judge order, the DOJ has filed an appeal of Kacsmaryk’s ruling, saying it will also seek a stay.

Tyler Durden
Fri, 04/07/2023 – 21:10

Clearview AI Scraped Billions Of Facebook Photos For Facial Recognition Database

Clearview AI Scraped Billions Of Facebook Photos For Facial Recognition Database

Facial recognition firm Clearview has built a massive AI-powered database of billions of pictures collected from social media platforms without obtaining users’ consent.

In late March, Clearview AI CEO Hoan Ton-That told BBC in an interview that the company had obtained 30 billion photos without users’ knowledge over the years, scraped mainly from social media platforms like Facebook. He said US law enforcement agencies use the database to identify criminals. 

Ton-That disputed claims that the photos were unlawfully collected. He told Bussiness Insider in an emailed statement, “Clearview AI’s database of publicly available images is lawfully collected, just like any other search engine like Google.” 

However, privacy advocates and social media companies have been highly critical of Clearview AI. 

“Clearview AI’s actions invade people’s privacy which is why we banned their founder from our services and sent them a legal demand to stop accessing any data, photos, or videos from our services,” a Meta spokesperson said in an email to Insider. 

Ton-That told Insider the database is not publicly available and is only used by law enforcement. He said the software had been used more than a million times by police. 

“Clearview AI’s database is used for after-the-crime investigations by law enforcement, and is not available to the general public. Every photo in the dataset is a potential clue that could save a life, provide justice to an innocent victim, prevent a wrongful identification, or exonerate an innocent person.”

According to critics, using Clearview AI by the police subjects everyone to a “continuous police line-up.”

“Whenever they have a photo of a suspect, they will compare it to your face,” Matthew Guariglia from the Electronic Frontier Foundation, told BBC. He said, “It’s far too invasive.”

The AI-driven database has raised privacy concerns in the US to the point where Sens. Jeff Merkley and Bernie Sanders attempted to block its use with a bill requiring Clearview and similar companies to obtain consent before scraping biometric data.

In 2020, the American Civil Liberties Union sued Clearview AI, calling it a ‘nightmare scenario’ for privacy. The ACLU managed to ban Clearview AI’s products from being sold to private companies but not the police. 

Clearview AI is a massive problem for civil liberties. The easiest way to prevent Clearview AI from scraping photos from your social media accounts is to not be on social media. Alternatively, if you wish to maintain a social media presence, ensure that the images you post are not publicly accessible on the web. 

Tyler Durden
Fri, 04/07/2023 – 20:45

Source Of Starlink Outage Identified Musk Tweets, “Coming Back Online Now”

Source Of Starlink Outage Identified Musk Tweets, “Coming Back Online Now”

Update (2112ET):

Elon Musk tweeted that the widespread Starlink outage was caused by an “expired ground station cert.” He said, “We’re scrubbing the system for other single-point vulnerabilities.”

Musk said Starlink is “coming back online now. 

Here’s the outage timeline for the US East Coast. 

*   *   * 

On Friday evening, Starlink customers throughout the US complained that Elon Musk’s satellite-based internet service was down. 

Starlink users were greeted with a message when logging into their account that read:

“Your area is currently experiencing a service outage. Our team is investigating.” 

Downdetector, which tracks websites, showed Starlink users started reporting outages around 1945 ET. 

People are reporting outages in multiple states. Here’s what some are saying on Downdetector: 

Outages are also being reported in other countries. 

The outage is now trending on Twitter. 

Tyler Durden
Fri, 04/07/2023 – 20:34

Machiavelli & The Globalists: Why The Elites Despise Independent Thought

Machiavelli & The Globalists: Why The Elites Despise Independent Thought

Authored by David McGrogan via The Brownstone Institute,

The most important two sentences in the history of political philosophy since the ancient Greeks appears towards the beginning of Machiavelli’s The Prince.

‘[A] wise ruler,’ the author informs his reader, ‘must think of a method by which his citizens will need the state and himself at all times and in every circumstance. Then they will always be loyal to him.’

The history of the development of modern governance is essentially a riff on this basic insight. It tells us almost everything we need to know about our current predicament: those who rule us vigorously engaged in the task of making us need them, so that they can retain our loyalty and hence stay in power – and gain more of it.

Machiavelli was writing at a particular point in history when the thing which we now know as ‘the state’ first came into existence in European political thought. Before Machiavelli, there were kingdoms and principalities and the concept of rulership was essentially personal and divine. After him, it became secularised, temporal, and what Michel Foucault called ‘governmental’. That is, to the medieval mind, the physical world was a mere staging post before rapture, and the job of the king was to maintain spiritual order. To the modern mind – of which Machiavelli might be called the precursor – the physical world is the main event (rapture being an open question), and the job of the ruler is to improve the material and moral well-being of the population and the productivity of the territory and economy. 

Machiavelli’s maxim forces us to think more seriously about the doctrine for which he is nowadays famous – raison d’État, or ‘reason of state’, meaning in essence the justification for the state acting in its own interests and above the law or natural right. The way that this concept is usually described suggests an amoral pursuit of the national interest. But this is to overlook its caring aspect.

As Machiavelli makes quite clear in the lines I have just cited, reason of state also means obtaining and preserving the loyalty of the population (so as to maintain the position of the ruling class) – and this means thinking of ways to make it reliant on the state for its welfare. 

At the very moment that the modern state was coming into existence at the beginning of the 16th century, then, it already had at its heart a conception of itself as needing to render the population vulnerable (as we would nowadays put it) in order that they should consider it to be necessary. And it is not very difficult to understand why. Rulers want to maintain power, and in a secular framework in which the ‘divine right of kings’ no longer holds sway, this means keeping the mass of the population on side. 

In the centuries since Machiavelli was writing, we have seen a vast expansion in the size and scope of the administrative state, and as thinkers from Francois Guizot to Anthony de Jasay have shown us, this great framework of government has come into existence largely on the basis of this caring aspect of raison d’Ètat. It is not that, as Nietzsche had it, the state is merely a ‘cold monster’ imposing itself on society unbidden. It is that a complex series of interactions has developed, with the state convincing society that it is in need of its protection, and gaining society’s consent for its expansion accordingly. 

To return to Foucault (whose writings on the state are among the most important and insightful in the last 100 years), we can think of the state as having emerged as a series of discourses by which the population, and groups within it, are constructed as being vulnerable and in need of the state’s benevolent assistance. These groups (the poor, the old, children, women, the disabled, ethnic minorities, and so on) gradually increase in number such that they eventually make up more less the entire population.

The ultimate dream, of course, is for the state to find ways to make literally everyone vulnerable and in need of its help (for its status will then surely be forever secure) – and I hardly need to spell out for you why Covid-19 was seized upon with such gusto in this regard.

This, then, is the basic story of the development of the state since Machiavelli – essentially, legitimising the growth of state power on the basis of helping the vulnerable. And it is at the heart, and has always been at the heart, of the concept of raison d’Ètat

But the story does not stop there. It only takes us far as the end of the Second World War. We are now in an age – as we are frequently reminded – of international cooperation, globalisation and, indeed, of global governance. There is barely a field of public life, from posting parcels to carbon emissions, which is not in some way regulated by international organisations of one kind or another.

Though the decline of the state has time and again been shown to have been greatly exaggerated, we are indisputably in an age in which raison d’État has at least partially given way to what Philip Cerny once termed raison du monde – an insistence on centralised global solutions to a proliferation of ‘global problems’.

Like raison d’Étatraison du monde is dismissive of petty constraints – such as law, natural right, or morality – that might limit its field of action. It justifies acting in what is seen as the global interest irrespective of borders, democratic mandate, or public sentiment. And, as with raison d’État, it presents itself as a Foucauldian ‘power of care’, which acts where necessary to preserve and improve human well-being. 

We can all of us list the litany of areas – climate change, public health, equality, sustainable development – in which raison du monde displays an interest. And we can all, I hope, now see the reason why. Just as the state has since its inception at the time of Machiavelli seen its path to security as being through the vulnerabalisation of the population and the securement of its safety, so our nascent global governance regime understands that in order to grow and preserve its status, it must convince the people of the world that they need it. 

There is nothing conspiratorial about this. It is simply the playing out of human incentives. People like status, and the wealth and power that derive from it. They act robustly to improve it, and to keep it when they have it. What animated Machiavelli and those he was advising is thus the same thing that animates people like Tedros Adhanom Ghebreysus, Director-General of the WHO. How does one gain and preserve power? Convincing people they need you. Whether it’s raison d’État or raison du monde, the rest simply follows accordingly.

Thinking of things in this way also helps us to understand the vitriol with which the ‘new populism’ of anti-globalist movements has been treated. Whenever a campaign like Brexit succeeds in rejecting the logic of raison du monde, it threatens the very notion on which the concept rests, and hence of the entire global governance movement. If a state like Britain can ‘go it alone’ in some sense, then it suggests that individual countries are not so vulnerable after all. And if this is shown to be true, then the entire justification for the framework of global governance is called into question.

This same basic pattern, of course, underpins contemporary anxieties about such phenomena as the no-fap movementhomesteadingtradwives and bodybuilding; if it turns out that the population is not so vulnerable after all, and men, women and families can improve themselves and their communities without the aid of the state, then the entire structure upon which the edifice of raison d’État rests becomes radically unstable. This is at least part of the reason why these movements are so frequently smeared and traduced by the chattering classes which are so reliant themselves upon the state and its largesse. 

We find ourselves, then, at a crossroads in the trajectory of both the state and global governance. On the one hand, the imperatives of raison d’État and raison du monde seem to both have been spurred by rapid advances in technology with vastly more potential to both vulnerablise the populace and promise to assuage and ameliorate its every inconvenience. But on the other, political and social movements which reject this vision are growing in influence. Where this will lead us is a genuinely open question; we find ourselves, like Machiavelli, at the beginning of something – though there is absolutely no telling what.

*  *  *

Republished from the author’s Substack

Tyler Durden
Fri, 04/07/2023 – 20:10

Watch: Legislator Switches To GOP, Says Democrats “Villainize Anyone Who Has Free Thought”

Watch: Legislator Switches To GOP, Says Democrats “Villainize Anyone Who Has Free Thought”

Authored by Steve Watson via Summit News,

A North Carolina Democratic legislator handed a decisive victory to the Republican party Wednesday by defecting and ensuring a veto-proof majority.

Announcing the switch, Tricia Cotham declared that “The modern-day Democratic Party has become unrecognizable to me and others across the state,” adding “I will not be controlled by anyone.”

“If you don’t do exactly what the Democrats want you to do, they will try to bully you. They will try to cast you aside,” she further proclaimed, adding  

“They have pushed me out.”

“The party wants to villainize anyone who has free thought, free judgment, has solutions and wants to get to work to better our state,” the legislator continued, saying she’d rather dedicate her time to that than “just sit in a meeting and have a workshop after a workshop.”

Cotham expressed a desire to “Really work with individuals to get things done. Because that is what real public servants do.”

Cotham went on to explain that one factor that influenced her decision to switch parties came after she was heavily criticized and verbally attacked for using the American flag and praying hands emoji on social media.

Cotham claimed that Democrats have been “blasting me on Twitter to calling me names, coming after my family, coming after my children,” describing an incident where she was verbally abused at a store while shopping with her son.

“I am still the same person, and I am going to do what I believe is right and follow my conscience,” Cotham vowed.

The switch says a lot about the state of the Democratic party, given that Cotham is hardly a traditional conservative, having served in the legislature as a Democrat for five terms, from 2007 to 2016 and being reelected as one this year.

As documented by the New York Times, Cotham campaigned on a “platform of raising the minimum wage, protecting voting rights and bolstering L.B.G.T.Q. rights.”

She also once took to the floor of the North Carolina House and announced she had previously had an abortion, calling it a “deeply personal decision” and accused GOP lawmakers of just wanting to “play doctor”.

Now, Cotham has indicated that she is open to supporting new abortion restrictions.

In a statement, GOP chair Michael Whatley said “This announcement continues to reflect that the Democratic Party is too radical for North Carolina.”

“The values of the Republican Party align with voters, and the people of Mecklenburg County should be proud to have her representation in Raleigh,” Whatley said of Cotham.

*  *  *

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Tyler Durden
Fri, 04/07/2023 – 18:00

Chicago Braces For Tax Shock After Uber-Progressive Mayor Elected

Chicago Braces For Tax Shock After Uber-Progressive Mayor Elected

Residents of the Democratic stronghold of Chicago just elected another Democrat Mayor to replace Lori Lightfoot…

…yet, instead of perhaps voting for a centrist, mayor-elect Brandon Johnson is anything but – and the city is now bracing for more taxes.

As Bloomberg notes;

The mayor-elect’s proposed levies on corporations, financial securities and the rich would add pressure on the business community in the nation’s third-largest city that’s already grappling with rising crime, high-profile headquarter departures and fragile finances.

He wants to put more of the burden on the business community,” said Richard Caccarone, president-emeritus of municipal bond research firm, Merritt Research Services. “There’s some anxiety about the approach that he’ll use and solutions. You don’t want to start a negative spiral.”

Johnson’s unexpected victory on Tuesday comes as the city’s finances are under increasing strain – with pension funds short $34 billion as the city projects a $474 million deficit. In short, Chicago – which has been slower to recover from the pandemic than most other major cities – has to manage its way out of a mess amid high crime and several high-profile corporations bailing for greener (and safer, and lower-tax) pastures.

During his campaign, Johnson proposed $800 million in new taxes, without raising property levies, to deal with the deficit and invest in residents and neighborhoods across the city, not just downtown.

He also favors a $4-per-employee tax on large companies that have at least half of their operations in Chicago and has floated taxes on airlines that pollute the city’s air. Additionally, his plan includes a $1 or $2 tax per securities-trading contract — a measure opposed by Chicago’s iconic exchange giants, CME Group Inc. and Cboe Global Markets Inc. -Bloomberg

According to a spokesperson from CBOE, a securities tax would “only cause considerable harm,” on top of an environment where many traders have already relocated to other states such as Florida, Colorado and Tennessee.

“So if you’re going to tell the last remaining people that they are going to pay a $1 a contract, the floor would close overnight,” said P.J. Quaid, a senior vice president at R.J. O’Brien, adding “It’s just another piece of private industry that would be decimated by these tax policies.”

The feasibility of Johnson’s plan will be examined by the Civic Federation, which is tasked with tracking the city’s finances.

Meanwhile, Chicago will also fall under scrutiny from ratings agencies, and is being closely watched by investment managers.

“We’re hopeful mayor-elect Johnson will maintain fiscal discipline and continue on the path that earned the city several credit-rating upgrades last year,: said Nuveen senior muni analyst Molly Shellhorn. “Investors will be looking for additional detail on the potential impacts of some of Johnson’s new tax proposals.”

Tyler Durden
Fri, 04/07/2023 – 17:30

The Institutionalized Minds Of Most Americans

The Institutionalized Minds Of Most Americans

Authored by Kevin Porteus via AmGreatness.com,

We depend on the state for everything from government jobs and student loans to occupational licenses and the use of public resources. And we have the habits of mind to prove it…

I must have seen “The Shawshank Redemption” at least a hundred times. It was an ubiquitous staple of college life in the late 1990s, like “Friends” or The Dave Matthews Band. It’s the story of a young banker, Andy Dufresene (Tim Robbins), who tries to preserve his humanity and his hope while serving a life sentence after being wrongly convicted of the murder of his wife and her lover.

In the middle of the movie an elderly prisoner, Brooks Hatlen (James Whitmore), holds another inmate hostage at knifepoint. After Andy defuses the situation it is revealed that, after 50 years in prison, Brooks will be paroled. Brooks had spent his entire adult life in prison, and he didn’t want to leave, so he reasoned that by committing another crime he could remain in prison. While Brooks’ would-be victim surmises that Brooks is simply crazy, Andy’s best friend, “Red” Redding (Morgan Freeman), has a different explanation: “He’s just . . . just institutionalized.” 

Prison is the only world he knows; it’s the only world that makes sense to him. Red explains that “These walls are funny. First you hate ‘em, then you get used to ‘em. Enough time passes, you get so you depend on them. That’s institutionalized.” Brooks’ fears, and Red’s explanation, prove prescient. Paroled, Brooks is unable to adjust to the world outside prison, and he hangs himself in his apartment.

One doesn’t have to be in prison to be institutionalized, however.

Years ago, as a junior faculty member, I helped a young woman write her undergraduate honors thesis. She was a chemistry major, but the honors program required that her topic be interdisciplinary, so she chose to write on government funding of science in America. During this process I tried to impress upon her some of the obvious problems with our current system of government-funded science, and to get her thinking about alternatives. I assumed, as a newer faculty member, I’d find a receptive audience at a place like Hillsdale College.

How naïve I was. She could not fathom a world without government-funded scientific research. It was incomprehensible to her that “science” could happen in the absence of massive government funding and pervasive government supervision. Government funding is how “science” happens. For a scientific researcher, especially an academic one, obtaining a government grant from an entity like the National Science Foundation or the National Institutes of Health is critical, both to one’s research agenda and to one’s prestige and career advancement. Universities see it as a marker that one is important and doing important work. 

Medical professionals of all kinds are dependent on state licenses to ply their trades. Doctors and pharmacists are at the mercy of state pharmacy boards, the Drug Enforcement Agency, and the Food and Drug Administration when it comes to prescribing or dispensing pharmaceuticals. These people are practitioners, not academics or intellectuals, so when some government entity tells them that “the science is settled,” they have neither the time nor the inclination nor the resources to challenge the assertion. They’ve been conditioned to accept such assertions as orthodoxy, a conditioning that is reinforced by the possibility of losing their government-issued professional licenses. So your doctor leans on you to get the COVID vaccine, and your pharmacist won’t fill a legal prescription for Ivermectin because the CDC and his state’s board of pharmacy told him it is “horse dewormer.”

The entire modern state in America is one vast engine for institutionalizing its subjects. That state is so huge and so pervasive that essentially everyone is somehow dependent on it, whether they know it or not, whether they’d like to be or not. We depend on the state for everything from government jobs and student loans to occupational licenses and the use of public resources. All of these foster the dependence, and therefore the subservience, of the recipient on the state. A rancher must remain in the good graces of the Bureau of Land Management. Raytheon, and all its employees, are ruined if they don’t get a steady stream of Defense Department contracts. Radio and TV broadcasters need government permission in the form of an FCC license in order to work. To retain my access to federal student aid, my parents had to hand over sensitive tax information to the Department of Education. Failure to comply could result in loss of access to government largesse, with all the attending consequences.

The significance of the pervasiveness of government involvement in the scientific and medical fields goes far beyond the threat of loss of benefits and the promise of more benefits. For those who are enmeshed in it, the government-scientific complex is natural, beneficent, and indispensable. It predisposes them to believe that anyone who is outside the complex is not credible, and anyone who challenges it is a crank, a charlatan, or a conspiracy theorist. It fosters the mentality that any other arrangement is inconceivable. Defending that complex is thus a sine qua non of their very being, even when that complex is exposed as incompetent, corrupt, and even unscientific. The system is science.

Medical and scientific experts have, in the last couple of years, been accused of being stupid, crazy, or downright evil. Whatever is true in individual circumstances (Dr. Fauci, call your office), at the macro level these allegations miss the mark. They’re just . . . just institutionalized.

Tyler Durden
Fri, 04/07/2023 – 17:00

Small Bank Deposits Plunged $275 Billion In March, There’s Just One Thing…

Small Bank Deposits Plunged $275 Billion In March, There’s Just One Thing…

Update (1700ET): Forgive our furrowed brow and generally government-data-questioning nature, BUT… One rather notable thing though which throws all of this ‘transparency’ into doubt…

According to the prior week’s data, Small Banks saw a tiny $1.1 billion outflow (NSA), which prompted much rejoicing early on Monday when markets opened.

That tiny outflow was revised to a massive $47.5 billion outflow according to this week’s data!

So just how much will this last week’s data be revised next week?

*  *  *

US commercial bank deposits (ex-large time deposits) fell for the 10th straight week (to the week-ending 3/29), down $55 billion to their aggregate lowest since April 2021…

Source: Bloomberg

Rather oddly, on a non-seasonally-adjusted basis, total US commercial bank deposits (ex-large time deposits) ROSE $54 billion last week…

Source: Bloomberg

On the bright side, the pace of outflows has slowed  to $55.7 billion (from around $180 billion the previous two weeks), but the outflows look set to continue as Money Market fund inflows kept rising this week (a week ahead of the deposit data)…

Source: Bloomberg

Both large and small banks saw outflows once again, with large banks seeing $48 billion in outflows (to the lowest since March 2021) and small banks seeing a modest $7.2 billion in outflows (to the lowest since June 2021)…

Source: Bloomberg

On a seasonally-adjusted basis, Small banks saw around $275 billion in outflows in March (which included the week running up to SVB’s collapse) while large banks have seen $195 billion in outflows during that same period.

Last week saw outflows (SA) from large, small, and foreign banks

  • Large banks: -$39.9BN for week ended March 29, vs -$89.8BN last week

  • Small banks: -$44.8BN for week ended March 29, vs +$5.8BN last week

  • Foreign banks: -$26.4BN for week ended March 29, vs -$41.7BN last week

On a non-seasonally-adjusted basis, Small and Large banks saw inflows while foreign banks saw the 3rd straight week of outlows…

  • Large banks: $48.7BN for week ended March 29, vs -$92.2BN last week

  • Small banks: +$25.7BN for week ended March 29, vs $47.5BN last week

  • Foreign banks: -$32.1BN for week ended March 29, vs -$35.4BN last week

So with outflows continuing (and the spread between banks and TSY/MM fund yields), will banks start to compete for deposits? (Well not the biggest ones, for sure)…

“There are two key questions raised by the recent deposit turmoil,” Barclays Plc strategist Joseph Abate wrote in a note last week.

“How many deposits do banks ultimately lose to higher yielding money market funds? And how costly is it to replace this funding?”

Until now, when banks have lost deposits they haven’t had to compete aggressively so rates have lagged the Fed’s rate increases, and balances at government-only money fund balances had been flat since the hiking cycle began.

“But now that depositors have noticed, this dynamic is about to change,” Abate said.

And if the small ones start to ‘compete’ their profitability will collapse even further.

Which probably explains why regional banks just can’t bounce…

Still think this bank-run is over?

It’s easy to tell from here – as we detailed previously (and as far back as Nov) – as long as we are above the reserve constraint level for small banks, there is stability courtesy of the Fed’s massive reserve injection.

It appears Small banks are moving back towards the critical level, and the closer we get to that level, the greater the risk of bank failures and Fed panic.

Tyler Durden
Fri, 04/07/2023 – 16:45