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Barriers To Foreign Political Cash Look Like Swiss Cheese

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Barriers To Foreign Political Cash Look Like Swiss Cheese

Authored by Mark Hemingway via RealClear Wire,

The Swiss billionaire Hansjörg Wyss has a profound interest in American politics. Over the years, he has pumped $475 million that he has earned manufacturing medical devices into left-wing advocacy groups – $72 million in 2021 alone, according to a new report from the conservative watchdog group Americans for Public Trust. 

Although foreigners are prohibited from donating money directly to political causes, Wyss has given lavishly to progressive political organizations. Since 2016, some $245 million of his spending on American politics has gone to Arabella Advisors, which controls a vast network of progressive nonprofits that has financed hundreds of smaller groups campaigning for specific issues and candidates. Arabella raised $1.6 billion in 2021.

Critics argue that Wyss’s largesse illuminates a gaping loophole in political finance that essentially allows wealthy foreigners to launder their contributions – one exploited far more robustly by Democrats than Republicans. That may help explain why the issue became more prominent on Aug. 14, when House Republicans announced an investigation “into whether entities that qualify as tax-exempt under Section 501 of the U.S. Code are abiding by the statutory and regulatory prohibitions against … foreign sources of funding … being funneled through such organizations to influence America’s elections.”

Arabella, along with its subsidiary organizations, declined to comment for this article. 

Taking foreign donations has long been illegal, but the landscape shifted in 2010 with the Supreme Court decision in Citizens United vs. FEC. By holding that campaign finance laws violated free speech, the court broadly prevented the government from restricting independent political spending by corporations and other groups. Citizens United essentially allowed Wyss and other foreign billionaires to give unlimited amounts of money to political action committees and other organizations that did not coordinate their advocacy with specific candidates. 

The structure of Arabella Advisors is complicated and opaque by design. Arabella is comprised of a handful of smaller but still large and influential funds – New Venture Fund, Sixteen Thirty Fund, North Fund, Hopewell Fund, and Windward Fund. Those groups then create “pop-up” groups with generic names such as “Floridians for a Fair Shake” and “Arizonans For Responsible Government” to campaign for specific issues and candidates.

They’re little more than websites designed to look like fully independent, grassroots advocacy groups; yet they can be unplugged the minute a campaign wraps up,” according to a recent report on Arabella’s operations by Hayden Ludwig, Director of Policy Research at the Restoration of America, a right-leaning nonprofit that investigates the undisclosed donations to nonprofits commonly disparaged as “dark money.” The groups “don’t file IRS disclosures, nor do they reveal their staff, boards, or budget. They often solicit donations from unsuspecting liberals, some of whom might be bothered to realize they’re in fact supporting the biggest ‘dark money’ monster in politics and not a grassroots group.”  

With Arabella, donors’ money is extremely fungible. Because it is routed through two or three organizations before it gets spent, it is difficult to determine how donations from foreigners such as Wyss are disbursed. And given Arabella’s massive political spending, there’s no question the organization exerts political influence and is cozy with the Biden administration. This year, it was revealed that Arabella’s Eric Kessler was the only non-government employee on an email chain where Secretary of Agriculture Tom Vilsack and other USDA employees discussed policies to “transform” the U.S. food system and go after the meat industry for high prices, raising questions about whether the group is shaping the Biden administration’s agenda.  

With Arabella and their foreign megadonors working this closely with the White House, “I don’t see Democrats remotely concerned about the influence of foreign money, even though they spent years hammering Trump about being a supposed Russian asset,” says Ludwig. 

Two years ago, Americans for Public Trust filed a complaint with the FEC regarding Wyss and Arabella. While the FEC’s general counsel report on the matter concluded that there was “not currently enough information in the record to conclude that Wyss made indirect political contributions… that would be used for electoral purposes,” the report validated a number of concerns raised by Americans for Public Trust. Specifically, it concluded that the Sixteen Thirty Fund, a key part of Arabella Advisors network and funnel for Wyss’s money, had spent the lion’s share of its budget on electoral politics.

Ultimately, any hope for addressing foreign money in elections may lie with Congress. House Republicans recently introduced the “The American Confidence in Elections (ACE) Act,” which would make it illegal for foreigners to funnel money from nonprofits to Super PACs and other vehicles for electoral spending. And Sen. Marco Rubio reintroduced the Protecting Ballot Measures from Foreign Influence Act, which would make it illegal for a foreign national to contribute money, directly or indirectly, to state or local initiatives and referendums.

Curbing foreign influence in elections is an issue that large majorities in both parties support. “Americans of both political parties will say time and time again that they don’t want foreign money entering US elections,” says Ron Fein of clean-elections watchdog Free Speech for People. He also notes that state and local Democrats have embraced limiting foreign donations.

Mark Hemingway reports on the key institutions shaping public life, from lobbying groups to federal agencies to elections, for RealClearInvestigations. His writing has appeared in USA Today, Wall Street Journal, MTV.com, and The Weekly Standard.

Tyler Durden
Fri, 09/15/2023 – 06:30

The (Soaring) State Of Renting In Europe

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The (Soaring) State Of Renting In Europe

According to rental platform Housing Anywhere International, both Lisbon and Porto saw a 25 percent increase in the cost of renting an apartment in April through June 2023 compared to the same three month period last year.

As Statista’s Anna Fleck reports, this is an alarming rate, especially considering how local salaries (which are already low compared with much of the rest of Europe) are not rising at anywhere near the same pace.

The following chart is based on an analysis of more than 64,000 properties across 23 European cities. The following chart looks at the median rental price for a fully-furnished 1-bedroom apartment which are mostly geared towards mobile talents, i.e. young professionals and international students mostly aged between 18 and 35. More than 95.8 percent of the analyzed properties were fully furnished and 58 percent included bills.

Infographic: The State of Renting in Europe | Statista

You will find more infographics at Statista

In the same time period, Hungary’s capital of Budapest has seen its median price for an apartment jump by an astonishing 43 percent year-on-year to €1,100. Meanwhile, in Italy’s Florence and Turin, which have historically had much lower prices for renting accommodation than other parts of the country are starting to catch up as Florence saw a surge in its rental apartments of 21 percent (to a median of €1,700) and Turin saw a 12.5 percent (€900) increase.

Several phenomena are at work here.

Firstly, Europe is in the midst of a housing shortage crisis, which is pushing up the cost of renting an apartment drastically in many of the continent’s cities. But at the same time, new policies from the Covid work from home era mean that more ‘mobile talent’, or young skilled workers, are moving abroad, where they are driving up prices.

According to the report, the ranking of the biggest year on year changes varies depending on room type. When it comes to apartments, Budapest (42.9 percent), The Hague (27.8 percent), Utrecht (25.8 percent), Porto (25 percent) and Lisbon (15.8 percent) are the most extreme cases of the 23 analyzed cities.

In terms of the year on year change of a private room, however, it is: Lisbon (29.4 percent), The Hague (28.6 percent), Berlin (22.6 percent), Amsterdam (18.8 percent) and Frankfurt am Main (16.9 percent). While for studios it is: Lisbon (70.3 percent), Florence (33.3 percent), Hamburg (27.4 percent), The Hague (23.8 percent) and Porto (23.3 percent). Notably, both Lisbon and the Hague appear in all three of the top 5 roundups.

Tyler Durden
Fri, 09/15/2023 – 05:45

Wagner Sustains Significant Losses, Waning Support From Russia, In Central Africa Clashes

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Wagner Sustains Significant Losses, Waning Support From Russia, In Central Africa Clashes

Via Middle East Eye

The Wagner Group has sustained significant losses in the Central African Republic, according to images and video footage obtained by Middle East Eye. The CAR government is being supported by the Russian military group and Rwandan soldiers as it engages in a bloody conflict with rebel forces

The pictures and videos seen by MEE show rebel forces surrounding a dead Russian soldier, with stashes of money and weapons visible, as well as IDs. Opposition sources told MEE they had killed other Russian fighters in the clashes, but that Wagner had been able to evacuate the bodies of those slain fighters. 

A Russian officer from the Wagner Group provides presidential security in Bangui, July 2023. Source: Reuters

The military group has been weakened by disputes with the Russian government in the wake of the death of its leader, Yevgeny Prigozhin, who was killed in a plane crash on 23 August. Wagner is struggling to protect its presence in CAR, with opposition sources in the African country telling MEE that Russian fighters were being redeployed and replaced by Rwandans.

According to the sources, fighting has spread to the east, north and west of the country, with armed opposition groups advancing in some regions, most significantly around the northeastern town of Ndele and other areas known for their gold and diamond mines, which are protected by Wagner operatives.

Hundreds of Wagner mercenaries landed in CAR in 2018 in support of President Faustin-Archange Touadera, under the terms of a defence agreement with Russia

At the end of 2020, with Touadera threatened by a rebel offensive on the capital, Bangui, hundreds more joined them. The leader became known as “President Wagner” as a result, but as Africa Confidential recently reported, his attachment to Moscow has been weakening. 

After years of tension between CAR and former colonial power France, Touadera met his French counterpart Emmanuel Macron on Wednesday, as part of what Paris referred to as a “resumption of dialogue and positive dynamics in bilateral relations”. 

Nevertheless, Touadera told Macron that his partnership with Russia was “expected to continue”, and the African leader was in need of Wagner support to ensure victory – secured with 95 percent of the vote – in a July referendum that granted him the right to run for a third presidential term. In June, the US Treasury imposed sanctions on four companies connected to Wagner and to gold and diamond operations in CAR

According to MEE sources in Sudan and CAR, the Russian military group is also supporting the Sudanese paramilitary Rapid Support Forces (RSF), which has been at war with the Sudanese Armed Forces (SAF) since April.

Wagner has been involved in the transit of weapons across the border into the Darfur region of western Sudan, with opposition sources in CAR stressing that RSF soldiers have also crossed into eastern CAR from Sudan.

Dead soldier

The pictures and videos shared with MEE showed soldiers from the rebel Union for Peace in the Central African Republic (UPC), which is part of the Coalition of Patriots for Change (CPC), standing around the body of a Russian soldier.

According to CAR opposition sources, it was recorded after aggressive clashes between rebels and government forces backed by Wagner in the village of Bnaga Bingi in the northwest of the country. The pictures and videos also showed the rebels surrounding the body of the Russian soldier after taking off his clothes and sitting beside him with their guns. 

Another picture shows a uniform resembling that of the Wagner military, with ID cards believed to belong to the mercenary group. One video shows CAR rebels dancing, singing and happily shouting next to the body of the slain Russian. Another shows a Russian soldier killed in a forest, with one of the rebels calling for the mass killing of Russian soldiers in the region.

Wagner withdrawal

Abdu Buda, a UPC spokesperson, said that widespread fighting between rebel forces and Wagner mercenaries had erupted over the past week, with dozens of Russians killed in the clashes.

Below: a Washington Post infographic produced shortly before Prigozhin’s alleged death…

Sources in the CAR’s armed opposition told MEE that they were advancing against the government and Wagner forces in the north, east and west of the country. Buda also said that Wagner is gradually withdrawing – or at least redeploying – in the Central African Republic, following disputes with Russian President Vladimir Putin’s government and the death of Prigozhin.

“We believe that Wagner, which gave its full support to the government in Bangui, is currently trying to practise a gradual withdrawal from the country because of its international problems,” Buda told MEE. “We have seen them withdraw from some areas, where they have been replaced by government forces or Rwandan mercenaries brought in recently.

“We don’t know whether this is a tactic of redeployment by the enemy or if it’s a real withdrawal, as we have seen thousands of Rwandan forces, some of whom are from the Rwandan army and some of whom are mercenaries,” Buda added.

The UPC spokesperson said that fighting had intensified and that opposition forces intended to march on Bangui and “bring down the government and expel all the mercenaries from our country”.

Regional struggle 

The presence of Wagner forces in the Central African Republic has enabled Bangui to help Sudan’s RSF across the border. Buda confirmed that the Russian group and the CAR government had provided widespread military assistance to the Sudanese paramilitary, including large quantities of anti-aircraft guns and other kinds of weapons.

Despite reports from MEE and other publications about military support coming from the United Arab Emirates and across the border from CAR, the RSF has continued to deny that it is receiving any external help in its fight against the Sudanese army. 

“Wagner and the CAR government – and this may be part of the Wagner withdrawal tactic – are keen to secure the situation of their ally in Sudan, which is the RSF, so they have handed huge quantities of weapons to the RSF through the Sudanese-CAR borders,” Buda said. 

According to NGO sources working in CAR, the ties between the RSF in Sudan and Wagner in CAR are part of a wider regional competition between the West and Russia, which extends across the Sahel region and into other parts of Africa. 

There is wide regional competition between France and Russia in the region, including CAR, Sudan, Niger, Mali, Burkina Faso, Gabon and other west and central African countries in a movement that stands against the French influence in the region,” said a source from an international organisation, who asked not to be named because they are not authorised to talk to the media. 

“We knew that Russia was supporting the CAR government and the RSF, while France was indirectly standing behind the CAR opposition and the democratic groups that stand against the series of military coups in the region,” another NGO source said.

Touadera, though, has now met with Macron, with Paris and Bangui speaking of relaunching bilateral relations. 

Rwanda, a regional player whose influence in CAR is growing as it sends troops to the country and picks up mining concessions and agricultural projects, maintains good relations with the West and Russia.

Rwandan President Paul Kagame has agreed a deal with the British government to host migrants and asylum seekers deported from the UK, while Rwandan troops have protected oil workers from the French company Total in Mozambique. 

In eastern Congo, Amnesty found that fighters from the M23 rebel group, which is sponsored by Rwanda, had been guilty of summary execution and the rape of dozens of women. 

Tyler Durden
Fri, 09/15/2023 – 03:30

EV Investigation Irony: Europe’s Own Auto Manufacturers Utilize China’s Low Cost Manufacturing Base

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EV Investigation Irony: Europe’s Own Auto Manufacturers Utilize China’s Low Cost Manufacturing Base

The EU needs to realize that when it points one investigatory finger at Chinese EV subsidies, three more point back at it.

Among the ironies behind the EU launching an investigation into Chinese EV subsidies is the fact that Europe’s own automakers also take advantage of China’s low cost manufacturing base for vehicles.

Renault, for instance, markets its Dacia Spring as Europe’s most affordable EV, according to Bloomberg, yet the vehicle is manufactured in China’s Hubei province. It is priced at €20,800 ($22,300) in France, the report says. 

Meanwhile Chinese company BYD is pushing its most affordable vehicle in Europe at a price of €38,000. Bloomberg lists several other models that price cheaper in China than in Europe here

But that didn’t stop Commission President Ursula von der Leyen from saying earlier this week that: “Global markets are now flooded with cheaper Chinese electric cars, and their price is kept artificially low by huge state subsidies.”

She claimed: “This is distorting our market, and as we do not accept this distortion from the inside in our market, we do not accept this from the outside.”

But, as Bloomberg notes: “Models from Chinese-owned brands including MG, Polestar and Nio sell for much more in key European markets than back home.”

Recall earlier this week we wrote that the EU had launched an investigation into Chinese subsidies for electric vehicles. 

Speaking to parliament recently, von der Leyen said: “Their price is kept artificially low by huge state subsidies. This is distorting our market. And as we do not accept this distortion from the inside in our market, we do not accept this from the outside.”

China fired back in state mouthpiece The Global Times, which published a rebuttal late on Wednesday, claiming that the EU’s probe would likely “backfire” and that the EU’s economy would suffer as a result. 

The publication said that “…as the EU wields trade protectionist measures to suppress China’s EV industry, the European economy may suffer.”

The article claims that the EU isn’t bothered by the subsidies, but rather “the rapidly growing market influence of Chinese EV companies” and “the concern that homegrown European enterprises may be unable to compete.”

“Clearly, Europe is afraid,” The Global Times wrote. “They are afraid of competition from China, so they want to seek trade protectionism as a protective umbrella for European auto makers who are slowly transitioning toward electrification.”

Tyler Durden
Fri, 09/15/2023 – 02:45

“A Declaration Of War On Europe” – Salvini Says 6,000 Migrants Landing On 1 Day Threatens To Collapse Italian Society

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“A Declaration Of War On Europe” – Salvini Says 6,000 Migrants Landing On 1 Day Threatens To Collapse Italian Society

Via Remix News,

Social media has been awash with videos of migrants storming the shores of Italy in recent days, and Italy’s nominally conservative government is being forced to respond.

Italian Deputy Prime Minister Matteo Salvini, known for his hawkish stance on immigration during his tenure as interior minister in 2018, said on Wednesday that when 120 boats filled with migrants arrive on the shores of Italy at the same time, “it is not a spontaneous phenomenon, it is a declaration of war on Europe.”

The deputy prime minister of the right-wing government in Rome, who currently heads the Ministry of Infrastructure and Transport, referred to the fact that the boats with approximately 6,000 migrants docked on the island of Lampedusa in one day. He stressed that the problem was not exclusive to Lampedusa and that the situation threatened to “collapse Italian society as a whole.”

Salvini said he is convinced that mass migration to Europe was being orchestrated by criminal organizations, including human trafficking organizations. He added that Europe had completely abandoned Italy to protect its land and maritime borders and that Rome should act on its own to further tighten national security and migration regulations.

Salvini first met with League ministers, state secretaries and parliamentarians behind closed doors, before holding a press conference at the headquarters of the Foreign Correspondents’ Association in Rome. He also presented the issues on the RAI evening news program.

“The united center-right that came to government almost a year ago is working well in Italy, the same united center-right that gives us hope to make a difference in Europe,” Salvini said.

Video footage of boat after boat made waves on social media, with it serving as a visceral reminder of the spiraling immigration crisis Europe is facing.

Italian Prime Minister Giorgia Meloni ran on a campaign platform of blocking migrants and setting up a “naval blockade;” however, since coming to power, she has overseen a record number of illegal migrants arriving in Italy and has even approved plans for Italy to accept over 400,000 non-EU legal migrants per year.

Salvini, who managed to reduce illegal immigration dramatically when he served as interior minister, appears to value unity with Meloni at the moment and is not showing any public signs that he is ready to challenge his coalition partner. As Remix News previously reported, despite Meloni’s U-turn on immigration, she has maintained strong polling numbers in Italy, and the country’s growing immigration crisis does not appear to have dented her appeal with voters.

Salvini stated that uniting European conservatives and moderates is the only way to “send the socialists home,” referring to the European Parliament elections next year. He noted that the stakes of the elections amount to the future of Europe.

The immigration crisis could galvanize voters to swing to the right, but it could also backfire, especially if the scenes in Lampedusa and elsewhere in Italy begin to filter to the broader Italian populace, who may start to view the ruling the conservative government with skepticism. The EU, for its part, has done little to aid Italy, and if anything, could turn the screws on Meloni’s government if she takes any significant action to stem the immigration crisis.

Salvini also announced that on Saturday and Sunday the traditional annual meeting of the League, to be held in Pontida, Lombardy, will be attended by Marine Le Pen, leader of the French National Rally. Le Pen has come out in support of Salvini since the Meloni government formed, saying she is more ideologically aligned with the League party leader. Le Pen, in particular, says she rejects Meloni’s foreign policy stances.

The League leader also touched on the war in Ukraine, saying that a small state like the Vatican is doing more to stop the conflict than many major powers. Salvini said that Cardinal Matteo Zuppi, who is leading the peace mission launched by Pope Francis and is in Beijing for talks, has done more than the European Union.

The war in Ukraine remains another major point of contention between Salvini and Meloni, with Salvini seeking to disengage Italy from sending weapons to Ukraine, whereas Meloni has taken a more pro-Brussels stance and sought to escalate Italy’s role in the conflict.

Tyler Durden
Fri, 09/15/2023 – 02:00

You Can’t Fight The Culture War Without Making Movies

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You Can’t Fight The Culture War Without Making Movies

Authored by Michael Pack via RealClear Wire,

Conservatives complain that they are losing the culture wars. And they are right. That won’t change until conservatives actually produce culture, which would be good for everyone. American culture would be enriched by art made by artists with diverse viewpoints and experiences.

Conservatives could start with independent and documentary films; they are increasingly influential but much less expensive than Hollywood movies. Yet, many, on both sides, don’t believe conservatives can make good films.

I disagree, and I am in a position to know. Along with my wife and business partner, Gina Cappo Pack, I have been producing documentaries for many years. Over 15 of our films have been nationally broadcast on PBS. All have won awards and garnered many favorable reviews. (A full list of our films along with clips can be found here.) So, I am a practitioner, a maker of culture, rather than a critic or expert. 

In addition, I have run some major cultural institutions, including serving as president of the Claremont Institute, senior vice president for television programming at the Corporation for Public Broadcasting, and CEO of the United States Agency for Global Media, our government’s international broadcasters, including Voice of America. So, I also have the perspective of a media executive. Over the years, I have watched numerous conservative efforts to “take back the culture,” all pathetic failures.

Capturing the Culture

How did the left achieve cultural dominance? Not by accident or luck, but by hard work, a clear focus, and talent.

In the late 1960s, the New Left called for a “long march through the institutions,” intending eventually to dominate all the elements of civil society. The phrase is attributed to German Marxist student leader Rudi Dutschke, who was echoing Mao’s famed actual “long march” leading to the Communists’ revolutionary takeover of China. The concept was picked up by the Frankfurt School and has roots in the influential Italian Marxist Antonio Gramsci, who believed that cultural struggle inevitably precedes revolutionary class struggle. Student radicals knew they had failed to foment Marxist revolution in the 60s, so they turned to capturing the West’s cultural institutions.

Their first target was the university, where, as student radicals, they were already well-positioned. They soon expanded to Hollywood. For example, Bert Schneider, one of the producers of “Easy Rider,” helped finance and plan Black Panther leader Huey Newton’s flight to Cuba to evade charges of shooting a 17-year-old prostitute. To the Hollywood elite, Schneider was just earning his street cred. 

Today, their success is undeniable – in the universities, in Hollywood, the tech sector, woke corporations, and the permanent government bureaucracy. Along the way, their hard-core Marxism has morphed into a softer wokeism, at least for now.

The left owns the narrative. Their version of contemporary events and history dominates – we are told that the American Revolution was fought to preserve slavery, the Cold War ended thanks to Mikhail Gorbachev, transgender athletes have a civil right to compete in sports with biological women, and the rest of the woke litany. 

In the past, conservatives have downplayed the importance of culture, seeing its airy fictions as less serious than economics or politics. After losing many of their children and grandchildren to the progressive left, they have come to see the error of their ways, at least in theory. Many quote Andrew Breitbart’s aphorism that “politics is downstream of culture,” as if this were a new idea. It isn’t: In 1820, Percy Bysshe Shelley wrote that poets are “the unacknowledged legislators of the world,” and by “poets” he meant all artists. Plato and Aristotle understood this same idea thousands of years earlier, and they were none too happy about it, or at least ambivalent.

The Importance of Story

Conservatives talk about culture and storytelling all the time. But few of them really get it. 

I watch a lot of conservative films, especially documentaries. Few are very good, as I am often told by my friends on the left, and most don’t even coherently tell a story. Preaching at the audience isn’t telling a story. A series of anecdotes is not a story. A story is something that happens to a protagonist, or a group of protagonists, with a beginning, middle, and end. It has a story arc. Characters change and develop. Ideas emerge from the action. 

Let me offer two examples of how a story works, drawn from my own films. Our documentary, “Created Equal: Clarence Thomas in His Own Words,” tells the story of Justice Clarence Thomas, from growing up in the segregated South to the Supreme Court. We let him tell his story himself. He is the only person interviewed, except his wife, Ginni. He looks directly at the camera as if speaking directly to the viewer. 

The trailer can be found here.

The film deals with race in America, originalism, the principles of the Founding, being a black conservative, and much more. Not through experts telling us what to think but through Clarence Thomas his own life story. Viewers can see for themselves how his worldview arose from the events of his life. To make a compelling story, we needed to structure the narrative to build to the right climactic moments, employing music, editing rhythms, visual imagery, and the rest of the cinematic toolkit. 

Good documentary filmmakers reveal their biases not so much by distorting facts but by the stories they choose to tell. Several progressive filmmakers have chosen to tell the Ruth Bader Ginsburg story. Ginsburg was graced with two documentaries and a fictional feature film and became a pop culture heroine. All three films were widely acclaimed, and Robert Redford invited her to the Sundance Film Festival to celebrate her even more. We chose to tell Clarence Thomas’ story. America needs both. 

Our film, “The Last 600 Meters,” tells a different kind of story, depicting the biggest battles of the Iraq war, Fallujah and Najaf, in 2004. A climax is a scene toward the end of the film, one of the most intense firefights of the war, called Hell House. The clip can be found here.

I am gratified that many senior military leaders have praised the film. For example, Gen. James Mattis, who was in charge of the first battle of Fallujah, said: 

“The Last 600 Meters reveals the infantry’s world as it has seldom been seen by those who have not experienced it. “This film, uncaptured by politics or ideology, reveals the most bruising ethical environment on Earth and the character of the young men that our nation sends in harm’s way – its infantry. It does so without veneer or apology, and in the tumult shown, understanding builds to respect for those who do our nation’s bidding in the highly unforgiving environment of ‘The Last 600 Meters.’ This film is a classic, unique in its approach and unique in what it reveals.”

However, the film has not yet been released. The reasons reveal how differently the left and right respond to movies and understand stories. 

Although the Corporation for Public Broadcasting was the principal funder, PBS rejected the finished film, which had never before happened in my entire career. They said it was too pro-military and too sympathetic to the young soldiers and Marines. They accused me of using selective casting to make them look more attractive and articulate, as if they needed my help. In other words, PBS didn’t like what they took to be its message. 

Next, we tried to raise money to release the film in movie theaters hoping to generate audience buzz, and perhaps a good cable or streaming deal. I went around the country screening the film and meeting with wealthy donors. I was accompanied by one of our executive producers, Steve Bannon (yes, that Steve Bannon, then a movie guy, and clearly a great salesman). Consistently, these potential donors told us that, while the film was emotionally moving, they didn’t know at the end what they were supposed to think. Was it pro- or anti-war? Why was there no “call to action”? At that time, we failed to raise the necessary funds. 

Clearly, the film deals with issues like patriotism, honor, the nature of counterinsurgency warfare, and how the military functions – but through the medium of story. For our potential donors, it was not explicit enough. They were uncomfortable with the ambiguities of the story. But that was part of the point of the film. War is messy, and certainties vanish. (PBS executives, on the other hand, thought they could see past the ambiguities to what they took to be our message.)

We still hope to release the film. Perhaps its moment has come. With the war in Ukraine, the debacle in Afghanistan, and other ongoing worldwide threats, we need to decide how we want to wage war. It would be wise to look back at what happened last time, during the biggest battles since Vietnam, Fallujah and Najaf. 

What is wanted is not merely storytelling. Story is the beginning, not the end. The viewer’s mind must be teased to see more than just a rollicking good tale, through ambiguity, metaphor, and the rest. The story must be in the service of ideas. 

The Left’s Documentary Ecosystem

Not only does the left have a better intuitive grasp of story, but they are also more serious about developing the institutions to support story-telling culture. 

Over the last 50 years, the left has poured time, money, and creativity into this project. Looking only at documentaries and small independent features, I estimate that the left spends tens of billions of dollars annually. For example, the annual budget of public broadcasting, radio, and television is about $2.5 billion. Netflix, according to the Wall Street Journal, spent $17 billion last year on content. Not all of this money is going to left-leaning products, but much of it is. And these are only two out of many left-leaning media enterprises. On the other side, the right spends, maybe, tens of millions of dollars on films and television. So, over 50 years, this gap has grown to hundreds of billions of dollars, which has underwritten a progressive ecosystem of supportive and reinforcing institutions, in addition to many, many powerful films. 

The left starts nurturing young filmmakers right from the beginning of their careers and then at every step along the way. 

It starts with film schools. Virtually every college and university in America has a film school, and there are about 4,000 colleges. Almost every film school professor is a self-described progressive. I have never met one who is conservative. Every year, these film schools graduate hundreds of thousands of progressive aspiring filmmakers (along with camera operators, editors, film composers, etc.). Only a small percentage have the talent, ambition, and drive to succeed, and they become the basis for the next generation of progressive creative talent. On the right, we have no such winnowing process. We are left with the few filmmakers who fall off the left-wing apple cart. 

After film school, there are many training programs for progressive young filmmakers to sharpen their skills and make industry contacts. 

Then, when looking for their first job, they can apply to any of the vast networks of progressive film companies, which range from one-man shops to divisions of major studios. 

When our budding young progressive filmmakers have acquired enough experience and are ready to make their first big film, they can turn to an extensive network of progressive funding sources. All the largest American foundations, including the Ford Foundation, the MacArthur Foundation, and the Rockefeller Foundation, have divisions devoted to supporting “social justice” documentaries. The federal government funds documentaries through the Corporation for Public Broadcasting, the National Endowment for the Humanities, and the National Science Foundation, among others. The staff of these government entities is very focused, explicitly, on social justice and DEI, and their grants reflect that. 

For-profit funding is also available. Several boutique distribution and production companies have been created by wealthy leftist billionaires, often from Silicon Valley, to support woke films, such as Participant, bankrolled by eBay founder Jeff Skoll. HBO, Showtime, Amazon, Netflix, and other cable and streaming companies commission woke documentaries and nonfiction series, in addition to acquiring them. 

As these young progressives start to produce their films, they can rely on a talent pool of skilled artists and craftsmen, from cameramen and composers to editors and computer graphics artists, who proudly call themselves progressive, too. 

When their woke film is finished, how do they make sure a large audience sees it? Our up-and-coming progressive filmmakers have a host of options, especially among cable and streaming services. Years ago, we all hoped that these new companies, like Netflix, Amazon, and Hulu, would provide a diversity of programming, different from the standard Hollywood fare. This has failed to materialize, in part because they are run by the same progressive Hollywood and New York elites that run the legacy media companies. 

Finally, our progressive filmmakers can enter their films in prestigious film festivals, like Sundance or Telluride, or the many smaller ones, including ones dedicated to environmental, LGBT, or other niche markets. Then, they might be lucky enough to get an award, from the Oscars and Emmys to many others, all run by the same woke club. 

Not surprisingly, with all this attention and need for content, there is a renaissance of documentary and nonfiction filmmaking. Both feature-length documentary films and short documentaries are being produced in large numbers. Many are of very high quality, but almost all are very progressive, especially in the choice of subject. For example, the proposed Emmy nominees for nonfiction in one year included documentaries and series celebrating Stacey Abrams, Greta Thunberg, progressive Philadelphia DA Larry Krasner, and the ’70s black militant group MOVE, a virtual litany of woke causes and progressive heroes and victims. None had voices questioning the saintly nature of their protagonists. 

The Myth of the Left’s Artistic Superiority

The left’s dominance of the culture may seem daunting. This should not deter us. To put our problem in perspective, look back at how radical leaders felt when they began their march through the institutions. They, too, were discouraged. 

Frankfurt school writers decried the hopelessly bourgeois nature of mid-century America, narcotized, according to them, by TV shows like “Bonanza” and “Father Knows Best.” How would they ever radicalize these comfortable middle-class Americans? But they persisted and are now rewarded with success. We can succeed, too. A restoration is easier than a revolution. 

Cowards who want to surrender in the culture wars often claim we can’t fight back because “the left is naturally more artistic and given to storytelling. Our side is more interested in politics and making money.” This may describe our society as it is now, but it is not a natural law. 

I am not even sure what this assertion means. Great art and artists are hard to pigeonhole, and the politics of the past are very different from the politics of the present. Just to cite a few examples: Virgil’s Aeneid, the most influential poem in human history, glorified the Roman Emperor Augustus. Dante’s Divine Comedy longed for a reconstituted pan-European monarchy and a universal church. Shakespeare’s history plays celebrated and justified Elizabethan rule. 

Whatever you call these works, they are not left-leaning or anti-authoritarian. 

The trope of the radical artist defying convention and society is comparatively recent, a creation of the Romantic Movement, with its Byronic rebel artists and its critique of industrialization and the values of the rising bourgeoisie. But, over the last two centuries, there are plenty of exceptions to this Romantic myth, from Robert Frost to T. S. Eliot. 

My part of the cultural battlefield is the movies. The movie industry itself is the best rejoinder to the myth of leftist artistic superiority. Hollywood, in its golden age, from the 1920s through the 1950s, consistently made movies with a patriotic subtext, selling the American Dream to audiences here and all over the world. These movies celebrated faith, family, and individual opportunity. Hollywood moguls, like Louis B. Mayer, Jack Warner, and Samuel Goldwyn, were Jewish immigrants who fled oppression and pogroms in Eastern Europe. They prized American liberty and freedom, having bitter memories of its opposite. And, of course, selling the American dream was good business, leading to immensely popular movies, since these movies mirrored the values of their countrymen. 

The iconic American genre is the Western, whose greatest director was John Ford, and its greatest star was John Wayne. Ford’s movies, like “The Man Who Shot Liberty Valence” or “The Searchers,” tell complex stories of the settling of the West, which are basically positive but with complicating features. John Wayne often portrays the rugged individualist hero, who is maybe too violent for civilization but necessary for its success. These movies, and icons like Wayne, made people all over the world want to come to America and be Americans. 

When it comes to storytelling, in truth, the advantage is all on our side, not on the left’s. Our stories, especially about America, have heroes and villains, and great world-changing adventures. These are stories past generations of Americans have loved hearing. Moreover, they are actually true and reflect even deeper truths. The left has had to turn all this on its head, with anti-heroes, nihilistic postmodern Westerns, dystopian anti-free market fantasies, and the rest. With the help of deep pockets and the control of all cultural institutions, they have done surprisingly well with a weak hand. 

Solutions

America may be in a culture war, but only one side is fighting. The progressive left is making culture. We, on the conservative right, merely complain about it. Imagine a war where one side deploys troops and weapons, and the other side complains about the first group’s inhumane behavior. No wonder we are losing. We haven’t really begun to fight, to get our troops into the field. 

We need to start producing culture. To give you an idea of what can be accomplished, let me describe what my team is doing. We have launched a new production company, Palladium Pictures, to help fill this need. We aim to tell stories the progressive left ignores, downplays, or covers in a one-sided fashion. Fortunately, we have a generous multi-year grant to help us get started. Naturally, we will need to fundraise aggressively to realize the grandest of our ambitions.

Our plan has three parts: new long-form documentaries, short documentaries, and an incubator to train the next generation of right-of-center filmmakers.

Long-Form Documentaries

As is typical for a production company, we have many projects in development and the list is always growing. Let me briefly describe three from this list, without too much detail. 

“Seattle 2020” (working title): The protests and riots following the death of George Floyd, whatever their political goals, also led to billions of dollars of property damage and many violent crimes. Yet, there are no major documentaries about those riots, while, according to the Washington Post, there are over a dozen films in production about the Jan. 6, 2021, riot at the U.S. Capitol.

The events in Seattle that summer are a good window into what was happening across the country and into some of the movements and issues that are still with us. Immediately after George Floyd’s killing, protests and riots began, first in downtown Seattle and then in the fashionable Capitol Hill area. Eventually, the police decided to abandon the Capitol Hill police station and permit the protestors to run the six blocks around it as they saw fit, with barriers to entry and their own security force. The protestors first called the area The Capitol Hill Autonomous Zone (CHAZ) but later changed the name to The Capitol Hill Organized Protest (the CHOP). Police, fire, and EMS were forbidden entry. During the day there was free food, music, and speeches, while nighttime was more violent: Many stores were looted, there were several shootings, and, finally, two murders forced the city to clear the CHOP, though protests continued throughout the year. We will examine the story from all sides, giving all points of view, from protestors to police to city officials, a chance to speak.

“Fracking” (working title): Extracting natural gas through hydraulic fracturing and horizontal drilling, commonly called “fracking,” has revolutionized energy production in the U.S. We have gone from a net importer of petroleum products to a net exporter, not without controversy. Critics claim fracking is polluting drinking water and releasing large amounts of methane, a greenhouse gas, into the environment. Defenders of the method point to the huge new resources of natural gas that can be reached by horizontal drilling, fueling economic growth in America and around the world. They add that natural gas replacing coal has lowered America’s CO2 emissions.

Rather than feature the argument or profile victims, as is often done, we will follow a few fracking entrepreneurs as they try to drill for natural gas, encountering opposition from regulators, environmentalists, and government at all levels. Although all these people will get a chance to make their case fully, our story will be driven by our entrepreneurs’ ongoing efforts to find the energy the world needs and to pursue the American dream of success through achievement.

“Rediscovering Thomas Jefferson”: America’s Founding Fathers are under attack as never before, from tearing down their statues to the 1619 Project’s claim that the American Revolution was mainly about protecting slavery. So, this seems to us a good time to reexamine our founding. We have done two previous films on founders, “Rediscovering George Washington and “Rediscovering Alexander Hamilton,” which placed their lives in the context of today’s world. 

Next, we want to turn to Thomas Jefferson. These days he is under attack not only for being a slave owner who is believed to have fathered children with an enslaved woman, but also for his Enlightenment ideas, as realized in the Declaration of Independence, whose vision of “equality” differs from contemporary notions of “equity.” We will present him, warts and all, but not just the warts, the brilliance, too. 

These are three very different documentaries. Together they can begin to change the debate about the recent past, the present, and our history – and point the way for others to do so, too. A small number of well-crafted, fair-minded films can make a difference.

Short Documentaries

We are working with a major media organization to put out a series of short documentaries, telling the full story behind news items and recent events. Topics under consideration include aspects of the response to COVID-19, cancel culture, and the parent movement to challenge public schools.

These shorts will deal with issues by finding the human story that reveals the essence of what is at stake, rather than being issue-oriented essays, with a lot of explanation and narration. The format will be closer to the New York Times’ Op-Docs, rather than the video essays popular on conservative websites. Although topical, these films will not be advocacy. While relying on good reporting, presenting a fair consideration of the issues, and featuring all sides, these will be primarily emotional and thought-provoking films. The New York Times’ Op-Docs, and others on the left, do this well. We need to catch up.

Since are partnered with a major media organization and will be producing several every year, these shorts will be able to gradually grow their audience and become a brand. We will use all the new ways of delivering video, from streaming services to X (formerly known as Twitter) to new social media outlets.

These docs will enable us to deal with hot-button issues with a quicker turnaround time, before the conventional wisdom is settled. If the news is the first draft of history, these will be the second draft (and our longer docs, the third draft). In a world bogged down by the 24-hour news cycle, these docs will offer in-depth journalism that captivates as much as it investigates and informs. 

Incubator

In the future, who will make movies that will tell “the other side of the story,” neglected by Hollywood and today’s cultural establishment? How can we create the missing talent pool, cast aside by the progressive left’s ecosystem of institutions from film school to the Oscars?

To solve that problem in the nonfiction realm, we are launching an incubator program to train and nurture a core group of the next generation of right-of-center documentary filmmakers. Through a competitive process, we will select several fellows, whose short film project we will fully fund and distribute. These films will be made under our direct supervision and tutelage, so the filmmakers will receive mentorship and guidance. In the course of making these short films, a new generation of non-woke filmmakers will learn producing skills, narrative techniques, and journalistic judgment. 

Each year this network of young, talented filmmakers will grow. They will go on from our incubator to make bigger and better films. They will help and collaborate with each other. We are committed to helping them throughout their careers. Over time, as a group, they will change the documentary film landscape, challenging the notion that conservatives can’t make movies, not in theory, but by producing great films.

The program is outlined here.

Conclusion

Contrary to conventional wisdom, I am much more optimistic about the changing the culture, especially through the story-telling media, than about reforming politics and the government. Sure, conservatives can win elections, but the permanent bureaucracy has spent decades burrowing in and is protected by civil service rules so even victories at the ballot box don’t mean what they once did. Yet, anyone can make a movie. Although all the supporting institutions are on the left, entertainment remains a free market.

We can nurture our own filmmakers and make our own movies. Today, there are many more ways for a non-woke film to reach an audience. You can stream it from your own YouTube site. You can make a deal with one of the several new conservative streaming sites. It’s also possible that you can persuade one of the major streaming services to pick it up. After all, we have been successful for decades in getting our films nationally broadcast in primetime on PBS, hardly a right-wing outlet. The key is to have truly excellent content, whose value cannot be denied. Content is indeed king. 

We can also build cultural institutions of our own – and create an alternative ecosystem, modeled on the successful one the left has built over the decades. By learning from their experience, we can do it all much faster, using newer technology.

America, it is often said, is roughly divided into thirds: one-third on the left, one-third on the right, and one-third in the middle. I believe the latter two-thirds would support and welcome documentaries and feature films that present a positive, but accurate, portrait of America, reflecting traditional values without preaching and without distortion. 

We need to summon the will to do it – and the funding.

Michael Pack is a documentary filmmaker, who has produced over 15 award-winning documentaries which were nationally broadcast on public television, most recently “Created Equal: Clarence Thomas in His Own Words.” He has also served as a media, government, and non-profit executive.

Tyler Durden
Thu, 09/14/2023 – 23:40

As Historic Auto Union Strike Starts, White House Prepares Emergency Aid

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As Historic Auto Union Strike Starts, White House Prepares Emergency Aid

Update (2320ET): For the first time in history that the 146,000-member union has simultaneously gone on strike against Ford, General Motors(GM) and Stellantis, according to Reuters.

“Tonight, for the first time in our history, we will strike all three of the Big Three at once,” UAW President Shawn Fain says.

UAW President Shawn Fain announced that the strike would begin on Friday at three plants:

  • GM’s midsize truck and full-size van plant in Wentzville, Missouri;

  • Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and

  • Stellantis’ Jeep plant in Toledo, Ohio

…while not yet committing to a complete strike for all its members.

Pro-union President Biden is walking a very thin line.

Even though the president and other officials in his administration have repeatedly said they’re not concerned about impending labor action, the Washington Post reports Biden officials “are preparing economic measures to protect suppliers to the auto industry from long-term damage.” 

People familiar with internal conversations said the White House is very concerned about the strike that could “wipe out the thousands of suppliers” critical for Ford, General Motors, and Stellantis’ complex supply chains. The chaos at the supplier level “could impede the broader US auto supply chain even after the possible strike ends,” the people said.  

The type of support being offered is unclear, but one possibility could be in the form of grants via the Labor Department to assist workers at firms affected by strikes. Another option could be loans to these firms supplied by the Small Business Administration. 

“The administration wants to be sure to do what it can to protect the Detroit supply chains,” one of WaPo’s sources said, adding, “They have to worry about how some of the less well-capitalized firms could be at risk.”

If these sources are correct, it would contradict the president who stated ten days ago while at his luxurious beach house in Rehoboth beach: “I’m not worried about a strike. I don’t think it’s going to happen.” On Monday, Deputy Treasury Secretary Wally Adeyemo reaffirmed Biden’s position that ‘strikes will be averted’. 

On Wednesday, UAW boss Shawn Fain told members in a Facebook Live event that talks with General Motors, Ford, and Stellantis were still ‘far apart‘ and, “We are preparing to strike these companies in a way they’ve never seen before.”

This week, UAW dropped their wage hike demand from 40% to 36%, but even then, that’s still far off from auto companies offers:

Ford is proposing a 20 percent raise over 4½ years, up from its initial offer of 9 percent. General Motors is offering an 18 percent raise over 4½ years, up from 10 percent earlier. And Stellantis, the parent company of Jeep and Chrysler, is offering 17.5 percent raises over that same time period, up from 14.5 percent. -WaPo

Fain said a strike would begin in a “select few” manufacturing plants to keep automakers guessing where the next labor action will emerge:

“This is going to create confusion for the companies. It’s going to keep them guessing on what might happen next, and it’s going to turbocharge the power of our negotiators.” 

The union boss has a 2200 ET Facebook Live Event scheduled for tonight. 

Last week, Bank of America Securities warned clients that a “strike is almost guaranteed.” 

Tyler Durden
Thu, 09/14/2023 – 23:20

How To Select A Town The Rich Won’t Gentrify And Ruin

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How To Select A Town The Rich Won’t Gentrify And Ruin

Authored by Charles Hugh Smith via OfTwoMinds blog,

Let’s review how to select a town that the rich won’t ruin via gentrification / swarming in en masse and driving out locals who have to work for a living.

Yesterday I discussed how those enriched by two decades of Federal Reserve-inflated bubbles make housing unaffordable for the bottom 90% by gentrifying previously affordable neighborhoods and towns. Once the truly wealthy have snapped up all the most desirable properties in the most desirable enclaves, the merely millionaires start snapping up nearby properties, fueling a bidding war that soon pushes valuations out of reach of the working populace.

As I discussed in STVR/Airbnb Has Destroyed America’s Resort Towns (8/30/23), the net result is the workforce of the gentrified town can no longer afford to buy or rent shelter near their work place. This forces them to commute long distances or give up and move away, leaving the town short of people to actually do the work of keeping the town operating.

Let’s review how to select a town that the rich won’t ruin via gentrification / swarming in en masse and driving out locals who have to work for a living. 

Let’s start by dividing the wealthy seeking a nice place to live where we can park some of our excess capital into four very different classes:

1. The most desirable class of wealthy residents is old money, families with deep roots in the town who quietly fund needed improvements and services with their wealth and who are protective of what makes the town a nice place to live. They have the clout to protect the town from the entitled vultures seeking to make a quick buck off gentrification and low-quality development.

Recent arrivals (within the past 20 years) can qualify if they follow the same script of quietly donating large sums to local needs and quietly working to keep out the vultures of gentrification. This class of wealth isn’t interested in scooping up all the land for their own mini-empire; they own enough for their own comfort but are not trying to own the whole area like the wealthiest, greediest vultures.

2. The second most desirable class is the entrepreneurial wealthy, those who earned their capital via hard work, thrift and building enterprises that add value–in other words, the opposite of the entitled wealthy whose money is the unearned spawn of Fed-inflated bubbles.

The entrepreneurial wealthy are less likely to be toxically entitled, more likely to be down to earth and more likely to invest for the long-term in local businesses that provide employment and services.

3. The least desirable class is the entitled bubble-wealthy who are cluelessly self-absorbed and demanding. They expect locals to be uncomplaining servants / serfs who will do whatever the entitled wealthy want done for low wages. They arrive with bloated self-importance and a toxic sense of entitlement, as if everything they want should be available to them wherever they are on the planet. They are ignorant of local history and culture and have little interest in fitting in and zero interest in contributing any real work to the community.

4. The most destructive class is the vulture-developer class who want to swoop in, build a bunch of low-quality strip malls and shoddy houses for the entitled bubble-wealthy that overburden the town’s limited infrastructure of roads, water service, etc., ruining it for residents new and established alike.

Somewhat tongue in cheek, here is a list of attributes you want to look for to avoid, as they’re magnets for the entitled bubble-wealthy and the the vulture-developer class:

The click-bait articles touting “the 25 best towns in America” serve one useful function: cross those towns off your list, as they’ve already been ruined by the influx of entitled, self-absorbed outsiders.

A more valuable use of time is to research what the entitled wealthy are looking for, and avoid those towns and small cities that check all the boxes the wealthy consider “must-haves.”

This includes a nearby highly rated hospital, as the wealthy are anxious to access the same high-quality care they’re entitled to, should anything untoward happen to their precious bodily fluids.

High-end healthy cuisine is also a must. If haute cuisine isn’t available, there must be tony cafes and bistros offering fish tacos, fresh fusion-inspired sandwiches made with artisan bread and similar light fare, vegan and vegetarian options and an acceptable selection of wines, craft beers and other beverages.

The town must have a decent bakery and butcher, and a farmer’s market, of course, as the wealthy are too busy day-trading, logging onto conference calls or jetting off for their next vacation-business meeting to actually grow any real food themselves.

A handful of cutesy shops for browsing is also essential, as is some live entertainment venue.

A cafe that grinds its own coffee and stocks luxury beans for grinding at home is also a must, a place expensive enough that locals will stay away, so the wealthy newcomers can gather to complain about the scarcity of quality “help” locally, as they’re accustomed to hiring undocumented immigrants for scandalously low rates of pay.

The police or sheriff’s department must be responsive to their calls, of course, as they’re entitled to special consideration due to the taxes they pay (as if locals don’t pay taxes, too…).

An absolute must is a nearby major airport, as the wealthy are always jetting around and it’s terribly inconvenient to have to drive a tediously long way to a commercial airport.

Competent tradespeople, mechanics and techies are high on the priority list, as it’s extremely annoying not to have someone who can fix the pool pump in summer, trim the hedges just so, maintain the fast Internet connection and do all that bothersome work keeping the short-term vacation rentals spiffy.

Fast Internet service is of course a must; spotty Starlink service will nix a locale immediately.

If you want to find some place the entitled wealthy are unlikely to ruin because they won’t move there–or if you want to get there before the hordes of entitled but-not-quite-rich-enough-to-buy-an-elite-enclave arrive–find a town that lacks some or all of these essentials, a place the wealthy will turn up their noses to, a town with the few things you care about but not enough to spark the interest of the entitled wealthy.

A town with minimal tourism is a good start, as the wealthy are drawn to unspoiled rural idylls that they can “improve” (i.e. destroy) with their entitled demands for a neofeudal arrangement of locals serving their whims without complaint for low pay.

*  *  *

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Tyler Durden
Thu, 09/14/2023 – 23:00

China Data Dump Largely Beats Estimates As Slumping Economy Finally Rebounds

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China Data Dump Largely Beats Estimates As Slumping Economy Finally Rebounds

In retrospect it was clear that China was poised for a rebound when the latest edition of the BofA Fund Manager Survey published earlier this week – which without fail exposes the prevailing wrong groupthink on Wall Street and is one of the best sources of contrarian alpha – showed that China sentiment had hit rock bottom.

And indeed, just days after we reported that China’s new credit had rebounded sharply in August thanks to a surge in new mortgage loans, leading to a 3.12TN yuan jump in China’s Total Social Financing…

… moments ago we got the latest Chinese data dump for the month of August, which showed that – as expected – the world’s 2nd biggest economy has rebounded from the bottom and may be stabilizing. Here are the highlights:

  • August Retail sales +4.6%, beating exp. +3.0%, Last +2.5%
  • August Industrial Output +4.5%, beating exp. +3.9%, Last +3.7%
  • Jan-Aug Fixed Investment +3.2%, missing exp. +3.3%, Last 3.4%
  • Jan-Aug Property Development investment -8.8%, Last -8.5%
  • China apparent oil demand +22.7% to 14.74mm b/d, unchanged from July
  • New property construction falls -24.4% YTD y/y to 639MM sq.m
  • August new home prices, excluding affordable housing, -0.29% m/m

And while we would report the most important data point of all, China’s record youth unemployment which last month hit a record high of 21.3% (and which according to some is now 50% or more), we can’t because Beijing decided to suspend the data series in August after it was clear that the only way to avoid exposing the collapse of China’s labor market was to stop reporting about it altogether.

Commenting on the data dump, China’s National Bureau of Statistics said that domestic demand expanded as supportive policies were rolled out and employment situation improved in August, but challenges remain.

The domestic economy is still facing “structural and cyclical problems” and policy makers’ focus will be on expanding domestic demand, NBS spokesman Fu Linghui said at a briefing in Beijing Friday. Still, officials expect the domestic economy to continue to recover and improve.

Frances Cheung, a rates strategist at Oversea-Chinese Banking in Singapore, agreed and after the report said that China’s August economic data points to some some stabilization in economic activities, which will set a floor to CNY interest rates, says  “The improvement in industrial production and retail sales is encouraging”

Cheung also said that the policy strategy appears to be putting forward numerous measures within a short period of time to achieve some amplified impact, and added that “the outsized MLF together with the more permanent liquidity released from the RRR cut shall provide a strong support to the market.” The unchanged MLF rate suggests policy focus moves away from the price of money to more direct support via fiscal spending and liquidity injection; The cut in the rate on the 14-day reverse repo is simply a catch-up.

Tyler Durden
Thu, 09/14/2023 – 22:46

New Program Tracks Foreign Forces Killing Civilians With US Weapons

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New Program Tracks Foreign Forces Killing Civilians With US Weapons

Authored by Jessica Corbett via Common Dreams,

Human rights advocates and some congressional Democrats on Wednesday cautiously welcomed Washington Post reporting that the Biden administration has created a program to track and investigate allegations of foreign forces harming or killing civilians with weapons provided by the United States.

“The United States clearly has a vested interest in knowing what harm its weapons sales and security assistance cause to civilians,” Human Rights Watch (HRW) deputy Washington director Nicole Widdersheim told the newspaper. “Let’s see if the Biden administration puts political will behind this good idea.”

Jihadists in Syria, including ISIS, had displayed American weapons on videos and in photographs, via Flashpoint/NBC

Annie Shiel, U.S. advocacy director at the Center for Civilians in Conflict (CIVIC), called the initiative “an important step” but added that “of course, its impact will come down to the details of implementation.”

The Quaker group Friends Committee on National Legislation noted Shiel’s remarks on X—formerly Twitter—while celebrating the “positive news… on accountability for harm caused by U.S.-supplied weapons.”

The U.S. State Department, which is leading the program with the help of “personnel from the Pentagon, intelligence community, and other agencies,” announced the Civilian Harm Incident Response Guidance (CHIRG) in an August 23 cable to American embassies and consulates, according to the Post.

A State Department spokesperson told the Middle East Eye on Wednesday that “CHIRG establishes a process to respond to new incidents of civilian harm and prevent them from recurring, and to drive partners to conduct military operations in accordance with international law,” but declined to say whether the probes will be made public.

The new initiative resembles a Defense Department effort launched last year that focuses on injuries and deaths of noncombatants caused by American forces—one which Shiel said at the time “offers opportunities to address long-standing structural flaws in U.S. policy and practice, prevent future harm, and provide civilians harmed by U.S. operations with the recognition and response they deserve.”

U.S. Senate Foreign Relations Committee Chairman Bob Menendez (D-N.J.) said on social media that he was “pleased to see” the State Department adopting an element of the Safeguarding Human Rights in Arms Exports Act, which he introduced with House Foreign Affairs Committee Ranking Member Gregory Meeks (D-N.Y.).

Passing such legislation, the Post pointed out, “would ensure that the new procedures can’t be abolished by a future administration, along with establishing other steps to prioritize rights concerns in arms sales.”

U.S. Sen. Elizabeth Warren (D-Mass.) on Wednesday also welcomed the new program while highlighting her related efforts on Capitol Hill. Over the past year, she has joined Sens. Bernie Sanders (I-Vt.) and Mike Lee (R-Utah) in sending letters to the departments of Defense and State.

CIVIC advocacy and legal fellow John Ramming Chappell stressed on X that the program “comes after years of congressional pressure” and “would not have been developed without demand from the Hill.”

“Questions remain, of course,” he noted. “What will actually happen when U.S. officials find U.S. arms have been used in war crime or human rights violation? Will there be meaningful accountability, or will perpetrators just get a slap on the wrist? Will close partners get special treatment?

Former longtime HRW executive director Kenneth Roth also raised a question: “But what about forces armed by the U.S. that use other arms to kill civilians? That’s wrong, too.”

Brian Finucane, a former State Department lawyer who is now a Crisis Group senior adviser, wrote on social media that the program is “a notable step” in monitoring civilian deaths and injuries but also warned observers to “be wary of relying on U.S. embassies, given ‘clientitis.'”

Finucane added that such monitoring “is more likely to be effective” if it is “statutory-mandated” versus administrative policy, is “as independent as possible to insulate from those in bureaucracy with interests in selling arms,” and incorporates information from all sources.

Tyler Durden
Thu, 09/14/2023 – 22:20