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A Deeper Dive Into The Role Of Spike Protein In Myocarditis And Blood Clotting After COVID-19 Vaccination

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A Deeper Dive Into The Role Of Spike Protein In Myocarditis And Blood Clotting After COVID-19 Vaccination

Authored by Allison Kruig, MPH and Dr. Ram Durlseti via The Epoch Times (emphasis ours),

In this series, “Promise or Peril: Alarming COVID-19 mRNA Vaccine Issues,” we explore how the introduction of mRNA technology lacked an adequate regulatory framework, setting the stage for serious adverse events and other concerns related to inadequate safety testing of lipid nanoparticles, spike protein, and residual DNA- and lipid-related impurities, as well as truncated/modified mRNA species.

Previously: In Part 1, we introduced how the U.S. Food and Drug Administration (FDA) relaxed the rules for mRNA vaccines compared to mRNA therapies and discussed the available data regarding LNP distribution throughout the body based on animal testing, the fact that human testing was not done, and the lack of mRNA or spike protein biodistribution data. In Parts 2 and 3, we explored how the LNPs are constructed and how they behave in the body and affect health.

(Naeblys/Shutterstock)

Now we turn to another problem—the cargo contained in the LNP capsules: the mRNA and its encoded spike protein. We introduce the inflammatory response to the spike protein and one of its subunit proteins and how they may contribute to serious adverse events such as myocarditis and blood clotting.

Rochelle Walensky, former director of the U.S. Centers for Disease Control and Prevention (CDC), stated on “Good Morning America” in June 2021 that myocarditis cases are “really quite rare … minor, self-limited, they generally resolve with rest and standard medications.” However, this assertion was made based on a preliminary review of 300 cases and before conducting long-term follow-up.

A study published on Aug. 1 followed 40 adolescents in Hong Kong for up to a year. Follow-up testing performed in 26 patients with initial abnormal findings revealed that 58 percent of those with vaccine-associated myocarditis had persistent heart muscle scarring. The authors concluded: “There exists a potential long-term effect on exercise capacity and cardiac functional reserve during stress.”

This series demonstrates how exposure to the spike protein results in downstream cardiovascular issues. Given that vaccination causes the body to produce more spike protein, it is clear that additional research was needed to understand the health impacts of vaccination prior to licensure.

Summary of Key Facts

  • The SARS-CoV-2 spike protein and its S1 subunit have known impacts on the cardiovascular system, such as an increased risk of blood clotting.

  • The vaccine-induced spike protein and its S1 subunit have been found in the blood following vaccination.

  • In lab studies, the spike protein activates white blood cells and may trigger an inflammatory response or clotting.

  • Free spike protein was found in the blood of adolescents and young adults with post-mRNA vaccine myocarditis but not in healthy control subjects without myocarditis.

  • The S1 subunit can interact with ACE2, platelets, and fibrin and may be what leads to an inflammatory response driving serious adverse events, including clots, myocarditis, and neurological problems.

  • As discussed in Part 3, lipid nanoparticles (LNPs) act as adjuvants, stimulating the immune system. This innate immune response peaks within six hours of vaccination and returns to baseline by about day nine, temporally corresponding to the onset of myocarditis, which typically occurs within the first seven days following mRNA COVID-19 vaccination.

  • Studies have not been done to evaluate how vaccination affects those who have already been infected with SARS-CoV-2.

  • The spike protein was implicated in small vessel microclots during COVID-19 illness; thus, postvaccination cardiovascular effects should have been anticipated.

  • The first deadline for FDA-mandated post-authorization safety studies has passed, yet to the best of our knowledge, the full report has not been made available to the public.

The spike protein protrudes from the SARS-CoV-2 virus like a crown of sticky handles. The job of the spike protein is to grab onto the ACE2 receptor so the virus can enter the cell. The ACE2 receptor is found in many human cells in the lungs, kidneys, gut, heart, and the lining of the blood vessels.

Spike protein is comprised of two parts: the S1 and S2 subunits. The S1 subunit protein sits at the tip of the spike protein and is responsible for attaching to the ACE2 receptor. Once bound to the receptor, the spike protein changes shape to allow the virus to enter. Having accessed the inside of the cell, the SARS-CoV-2 virus uses the cell’s own protein manufacturing process to make new viral proteins.

Effective vaccines select recognizable antigens that induce a robust immune response. The spike protein was chosen for the mRNA COVID-19 vaccine because it is responsible for attaching to cells and gaining entry. However, research suggests that the spike protein and its S1 subunit may also be responsible for cardiovascular complications following both infection and vaccination.

The S2 subunit may also interfere with tumor suppression, potentially explaining why COVID-19 can be more severe for cancer patients.

(Jaitham/Shutterstock)

Research shows that the spike protein is found in the blood following COVID-19 infection and vaccination. The spike protein modifies blood clotting and can stimulate an overactive immune response. A better understanding of these findings and the specific roles the spike protein and its S1 subunit play will help us determine who is most at risk for severe disease or vaccine adverse events.

Cardiovascular Effects of Spike Protein Following Infection

Although the studies are small, the spike protein has been found in the blood and clots of severely ill COVID-19 patients. The clinical evidence suggests a fingerprint of the spike protein’s cardiovascular effects.

In a study of 41 patients published in Frontiers in Immunology, 30.4 percent of the 23 hospitalized were found to have significant levels of spike protein in their circulation. None of the remaining 18 uninfected or mildly ill individuals had circulating spike protein.

A small case-control study detected the spike protein in clots retrieved from COVID-19 patients with acute ischemic stroke and myocardial infarction.

Another study detected the S1 subunit in the plasma of 64 percent of COVID-19-positive patients, and S1 levels were significantly associated with disease severity. The nucleocapsid (N) protein, a marker for COVID-19 infection, was also detected. The authors speculated that the presence of S1 and N in plasma suggests that virus fragments enter the bloodstream, potentially due to tissue damage.

The exact chain of events is not fully understood. Still, laboratory, clinical, and biopsy findings offer converging evidence suggesting a role for the spike protein and its S1 subunit in blood clotting and heart injury.

Blood Clots Associated With Spike S1 Subunit

In laboratory experiments like those performed in the Frontiers in Immunology study, the spike protein S1 subunit causes a chain reaction that sets up the right conditions for clots to form. In this chain reaction, the S1 protein binds to the ACE2 receptor on the cells lining the blood vessels. Binding to ACE2 then activates immune cells.

This domino effect can also stimulate platelet binding, increasing clotting risk. Platelets are essential clotting agents that stop blood loss following injury by clumping together. The authors further noted that in vitro, “our group recently documented that exposing sera from severe COVID-19 patients to endothelial cells induced platelet aggregation.”

In other words, the S1 subunit is of interest because, in vitro (in a test tube), it appears to cause changes to clotting mechanisms. If the S1 subunit can affect clotting agents like fibrin, complement 3, and prothrombin, this may be a mechanism through which SARS-CoV-2 can cause cardiovascular complications. Clotting causes changes in blood flow, potentially leading to thrombosis, stroke, and heart attack.

Atypical Blood Clots

Providing blood thinners to decrease the risk of clot formation did not appear to reduce the clotting risk in COVID-19 inpatients or outpatients. This may be because the clots formed after exposure to the S1 subunit may not be typical blood clots. Three findings suggest that the S1 subunit is important to clotting risk.

1. Clots Resist Normal Breakdown

First, when the S1 subunit was added to healthy blood in the lab, it created dense, fibrous clot deposits. These fibrous “amyloid” clots formed even when blood taken from healthy people was exposed to the S1 subunit.

The S1 subunit appears to be associated with clotting resistant to fibrinolysis—the normal breakdown of clots necessary to restore blood flow after injury. These amyloid clots are shown in Figure 1 below.

Amyloid clots occur when a protein is damaged and begins to fold abnormally on itself. When these abnormal amyloid proteins accumulate in the body, they can interfere with normal function.

Figure 1. Amyloid Clots Formed in Response to Spike Protein S1

Figure 1. Amyloid clots formed in response to spike protein S1. (National Center for Biotechnology Information)

2. S1 Subunit Can Induce Amyloid Substances

Second, these dense clots may be caused by certain protein segments on the S1 subunit. The spike protein has seven protein segments (peptides) that can induce fibrous (amyloid) substances. While the fully intact spike protein (S1 and S2 subunits attached to form the full spike) did not form this amyloid, the S1 subunit did. This finding is interesting because it suggests that the subunits of the spike protein may have unique effects on cells.

3. Spike Blocks Other Clot-Inhibiting Proteins

Third, spike protein can outcompete other proteins, which prevent clots from forming. In another laboratory experiment designed to understand how this process plays out, scientists found that the spike protein blocks proteins important to breaking down clots.

In summary, the in vitro (laboratory-based) research suggests that the spike protein subunit S1 can induce clot formation and impair clot dissolution. While we do not know precisely how this translates to processes in the body, Epoch Times’ Jan Jekielek explored clotting and the role of spike protein with pathologist Dr. Ryan Cole on June 3 and Dr. Paul Marik on May 23. In the interview, Dr. Cole explained that the spike protein persists in the body longer, inflames tissues wherever it lands, and acts as an irritant or toxin in the body.

Spike Protein Found in COVID-19-Vaccinated Myocarditis Patients

Studies of COVID-19-vaccinated patients diagnosed with myocarditis found spike protein in the patients’ blood and heart muscles but not in those without myocarditis.

Found in Blood

The full-length spike protein has been found in the blood of vaccinated adolescents with myocarditis but not in the blood of those without myocarditis.

It is unclear why the spike protein was circulating freely or unbound by antibodies. The adolescents who developed myocarditis had similar immune markers to those who did not develop myocarditis. In other words, the group with myocarditis did not appear to have any immune problems.

Rather, these adolescents may have had an overactive natural immune response. Strong natural (“innate”) immunity helps the body fight off disease without any prior exposure. However, the first responders (inflammatory cytokines) can sometimes be exuberant. If the innate immune response overreacts, it may trigger myocarditis.

Found in Heart Muscle

The spike protein coded by mRNA has also been found in heart muscle cells. An endomyocardial (heart muscle) biopsy study was conducted among 15 patients with myocarditis following vaccination. No other viral infection could be found that might have caused the myocarditis.

The investigators found SARS-CoV-2 spike protein in nine of the 15 patients. Immune cells (CD4+ T) were also detected in the biopsy samples. These observations suggest an inflammatory reaction to the spike protein.

The authors concluded: “Although a causal relationship between vaccination and the occurrence of myocardial inflammation cannot be established based on the findings, the cardiac detection of spike protein, the CD4+ T-cell-dominated inflammation, and the close temporal relationship argue for a vaccine-triggered autoimmune reaction.”

A 2022 modeling study also suggests that the spike protein can cause an autoimmune response by mimicking human molecules, causing antibodies to bind to “self” proteins.

Spike S1 Detected in the Blood of Vaccinated Adults

Another study found that 11 of 13 adults vaccinated with Moderna’s mRNA-1273 had the S1 subunit in their blood as early as one day after vaccination.

Plasma was collected from 13 participants at various times during the first month after each dose. The antigens S1 and spike were measured to estimate the amount of mRNA translation into protein products.

After the first 100-microgram dose, S1 antigen was detected in the plasma of 11 participants. In contrast, the spike antigen was detected in three of 13 participants. The S1 antigen peak was detected on average five days after vaccination. Again, the timing of this peak for S1 seems to add to the clues suggesting an autoimmune response in the week after vaccination.

mRNA Detected in the Blood and Lymph Nodes After Vaccination

Vaccine mRNA, which encodes the spike protein and its S1 subunit, also persists in the blood and lymph nodes. Following vaccination, spike-encoded mRNA has been found in the blood for 15 days and in lymph nodes for up to 60 days. Spike-laden exosomes have been found circulating in the blood for up to four months. This finding is important because it refutes the CDC’s claim that the mRNA is so fragile that it dissolves quickly at the injection site (see Figure 2a in Part 1).

The lymph nodes continue creating better-fitting antibodies after any viral infection. This is a critical way that our bodies prepare for new variants naturally. However, persistently high levels of vaccine-induced mRNA and spike protein may not be helpful when the immune system is asked to respond to future variants. In other words, if the immune system is tasked with continuing to pump out antibodies to a previous variant, it may be less nimble when asked to create a high-quality antibody for a new variant.

Inadequate Clinical Trials Leave Unresolved Questions

Given what we know about the harmful effects of the SARS-CoV-2 virus, we should not have assumed that the vaccine-encoded spike protein would be harmless.

And, given what we know about clotting issues following COVID-19 infection, future studies should test whether the S1 subunit produced in response to vaccination can also cause clotting issues via the same pathway. These studies should include both lab experiments and human observations.

In addition, we do not know the relative amounts of free spike protein in circulation following infection versus vaccination.

In the case of the COVID-19 vaccines, the active ingredient was not studied prior to authorization. The manufacturers used mRNA that encodes for a substitute protein (luciferase) to test the safety and biodistribution of the mRNA vaccines.

Pfizer submitted animal biodistribution data to regulatory agencies using the surrogate RNA encoding for luciferase, as discussed in Part 1 of this series.

However, these studies were inadequate in describing how mRNA, the spike protein, its S1 subunit, and the LNP carrier would affect the human body.

In this article, we described laboratory findings showing clotting associated with the S1 subunit. Studies like these reinforce why thorough preclinical studies are so crucial. The studies conducted by pharmaceutical companies were not sufficient to address these questions.

We had very little information about how people would respond to vaccination depending on age, sex, immune status, overall health, or history of prior SARS-CoV-2 infection. The original clinical trials did not enroll enough people who had already recovered from COVID-19; they were not designed to provide an understanding of how prior infection would affect a person’s response to vaccination.

Required Pfizer Post-Authorization Safety Study Unavailable to Public

Pre-authorization studies were clearly inadequate. Post-authorization, the FDA has only acknowledged that passive surveillance is insufficient to establish safety. The agency responded to adverse event reports by requiring Pfizer to conduct additional studies, with the first monitoring report due October 2022.

On page 6 of the approval letter, the FDA acknowledges this fact (see Figure 2 below):

“We have determined that an analysis of spontaneous postmarketing adverse events reported under section 505(k)(1) of the FDCA will not be sufficient to assess known serious risks of myocarditis and pericarditis and identify an unexpected serious risk of subclinical myocarditis.

“Furthermore, the pharmacovigilance system that the FDA is required to maintain under section 505(k)(3) of the FDCA is not sufficient to assess these serious risks. Therefore, based on appropriate scientific data, we have determined that you are required to conduct the following studies. …”

Has the FDA received the monitoring report from Pfizer, which was due by Oct. 31, 2022? The next report, the interim report, will be due in October.

Figure 2. FDA Postmarketing Safety Study Requirements

FDA BLA Approval Letter, Aug. 23, 2021. (U.S. Food and Drug Administration)

Read Part 1: FDA Overhaul Needed for New Vaccines and mRNA Therapies

Read Part 2:Health Implications of Poor COVID-19 mRNA Testing: Miscarriage, Vision Loss, Immunotoxicity

Read Part 3: Pulling Back the Curtain: mRNA Lipid Nanoparticle Design Created Potential for Clotting and Triggering Immune Overdrive

Next: In Part 5, we will discuss the mRNA manufacturing issues affecting contamination with double-stranded DNA and the potential for genome integration.

For all references, click here.

Tyler Durden
Fri, 09/08/2023 – 21:40

‘Defund The Police’ Democrat Politician Left With Broken Leg, Bloodied Face, After Violent Carjacking In Minnesota

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‘Defund The Police’ Democrat Politician Left With Broken Leg, Bloodied Face, After Violent Carjacking In Minnesota

Authored by Katabella Roberts via The Epoch Times (emphasis ours),

The second vice chairwoman for Minnesota’s Democratic-Farmer-Labor Party, who previously vowed to “dismantle” the Minneapolis Police Department amid widespread Black Lives Matter (BLM) protests, is now calling for tougher crime laws after she was violently carjacked this week.

In a lengthy Sept. 7 post on Facebook, Shivanthi Sathanandan claimed the carjacking incident took place in the driveway of her Minneapolis home in front of her children, who are aged 4 and 7.

The incident left her with a broken leg, deep lacerations on her head, and bruising and cuts all over her body.

Ms. Sathanandan shared a photo of herself with what appeared to be blood pouring down her face alongside the post.

Four very young men, all carrying guns, beat me violently down to the ground in front of our kids,” she wrote. “The young men held our neighbors up at gunpoint when they ran over and tried to help me. All in broad daylight.”

Look at my face in the picture. This is the face of a mother who just had the [expletive] beaten out of her,” she continued. “A mother whose only thought was, ‘let me run far enough and fight hard enough so that my kids have a chance to get away.’ This is the face of a mother who just listened to her four-year-old daughter screaming non-stop, her 7-year-old son wailing for someone to come help because bad guys are murdering his Mama in the back yard, her neighbors screaming in outrage… all while being beaten with guns and kicks and fists.”

Attackers Must be ‘Held Accountable’

“These men knew what they were doing. I have NO DOUBT they have done this before. Yet they are still on OUR STREETS. Killing mothers. Giving babies psychological trauma that a lifetime of therapy cannot erase. With no hesitation and no remorse,” Ms. Sathanandan wrote.

“I’m now part of the statistics. I wasn’t silent when I fought these men to save my life and my babies, and I won’t be silent now. We need to get illegal guns off of our streets, catch these young people who are running wild creating chaos across our city, and HOLD THEM IN CUSTODY AND PROSECUTE THEM,” she said.

Look at my face. REMEMBER ME when you are thinking about supporting letting juveniles and young people out of custody to roam our streets instead of HOLDING THEM ACCOUNTABLE FOR THEIR ACTIONS,” the Democrat wrote.

A report from the Minneapolis Police Department obtained by KSTP states that Ms. Sathanandan’s vehicle was later abandoned by the suspects and recovered.

It is not clear if any suspects have been arrested. The Epoch Times has contacted the Minneapolis Police Department for further comment.

Demonstrators march to Brooklyn Center Police Department to protest the fatal shooting of Daunte Wright during a traffic stop in Brooklyn Center, Minn., on April 13, 2021. (John Minchillo/AP Photo)

‘Dismantle the Minneapolis Police Department’

The alleged attack on Ms. Sathanandan and her subsequent comments come roughly three years after she accused police of having “systematically failed the Black Community,” and vowed to “dismantle the Minneapolis Police Department.”

 
In a post on Facebook at the height of the BLM protests taking place throughout the country, sparked by the death of George Floyd while in police custody, Ms. Sathanandan wrote: “We are going to dismantle the Minneapolis Police Department. Say it with me. DISMANTLE The Minneapolis Police Department.

“MPD has systematically failed the Black Community, they have failed ALL OF US. It’s time to build a new infrastructure that works for ALL communities,” she wrote. “If you are still disagreeing with that BASIC FACT, I’m not sure what to say to you.”

In her post on Thursday detailing the alleged carjacking, Ms. Sathanandan vowed that the criminals would not win.

“We need to take back our city. And this will not be the last you hear from me about this,” she said.

The Democrat concluded the lengthy post by thanking the “incredible Minneapolis 4th Precinct Officers, Mayor Frey, Chief O’Hara, Paramedics, neighbors, friends and DFL family” who “all came to our aide during this terrifying experience.”

“I’m so grateful for this community that wraps us in love,” she wrote.

 

Tyler Durden
Fri, 09/08/2023 – 21:00

Power Vacuum: How The State Wants To Suck Electricity From The SUV You Are Required To Buy

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Power Vacuum: How The State Wants To Suck Electricity From The SUV You Are Required To Buy

Authored by Thomas Buckley via The Mises Institute,

A literal power vacuum – that’s what California Senate Bill 233 proposes.

And what is to be sucked? Your electric car.

The bill – which has passed the Senate and is now winding its way through the Assembly – states that all new electric vehicles to be sold in California after 2030 be “bidirectional.”

Because the state has decided to essentially go all electric without having the ability to actually provide enough electricity, the climate warriors have gotten a bit creative and now see the millions of electric vehicles (EVs) in the state as tiny batteries to make up for their incompetence.

Currently, not every EV can send power back to the grid (like home solar panels that ship excess power to their local utility.) The bill—almost certain to pass because this is California—would change that.

The bill, however, is only the first step in the process of being able to drain your EV, as the technology to get the electricity back onto the grid does not actually exist. As with so many other Golden State climate-related projects, it is based on being able to do it someday . . . probably . . . maybe.

While this approach allows solons and nabobs to tout their green-a-fides, set even more absurd future goals by assuming things will work eventually, increase state spending to fund such projects, and create an excuse to not actually do anything practical—like build natural gas generators—to shore up the state’s extremely wobbly grid, it does nothing to address California’s self-imposed “energy insecurity.”

The idea becomes even more absurd when one considers that shortly after announcing all new vehicles sold in the state by 2035 must be electric, the state asked the public to not charge their EVs after work because the grid couldn’t handle it.

In theory, this bill raises the specter of electricity being drained out of your full Tesla to power your neighbor’s empty Volt.

Furthermore, the concept is extremely dangerous. Imagine an emergency situation in which you have to leave your home immediately but you cannot because the state drained your car. The implications for fire evacuations, earthquake response, etc. are terrifying.

And its not terribly clear if you would get paid for your power and/or if you would have to buy it back.

Beyond the impracticalities, the concept does shine a light, as it were, on how easily the electrical power supply can be controlled and—if the grid is your only power option (no gas cars, no gas stoves, no propane, etc.)—how easily the public can be controlled through it.

From “The Psychology of Electricity”:

Now, a person can go to a gas station, put solar panels on their roof, buy propane at the hardware store, use natural gas in their home, even cut down trees to burn for heat. In other words, there are options other than electricity; there are literally millions of ways to not need to use electricity.

But imagine a literally all-electric world—you are reduced, confined, required to get the energy you need to live from one source, one centrally (by necessity) controlled source that everything you own runs on, one centrally controlled source that can cut the power to your specific home anytime it wants.

Conceivably—see China/social credit systems/central bank digital currency/“you’ll own nothing and be happy” and smart city concepts—[the] reasons for the power being cut will move beyond just being bill-related but conduct-related.

The power of energy as a social control lever is nearly limitless.

And that’s another reason why this legislative initiative is a very bad idea.

Tyler Durden
Fri, 09/08/2023 – 19:00

Biden’s New Campaign Ad Presents Him As Last Action Hero Entering Ukraine “Under The Cover Of Night”

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Biden’s New Campaign Ad Presents Him As Last Action Hero Entering Ukraine “Under The Cover Of Night”

He entered Ukraine under the cover of night. And in the morning, Joe Biden walked shoulder to shoulder with our allies in the war-torn streets,” the narrator of a new one-minute Biden campaign ad begins. “Standing up for democracy in a place where a tyrant is waging war to take it away.”

Ahead of the 2024 presidential election, where he’ll likely face Trump as the Republican nominee, the Biden team is focusing the reelection campaign around his surprise visit to Ukraine which took place last February. It’s being touted as the first time in American history that a sitting president traveled to an allied nation at war. “In the middle of a war zone, Joe Biden showed the world what America is made of,” the narrator says. “That’s the quiet strength of a true leader, who doesn’t back down to a dictator.” Watch the one-minute ad below:

So while his critics sarcastically refer to him as “sleepy Joe” – his supporters are envisioning him as some kind of last action hero being covertly whisked into a dangerous “war zone” in the dark of night. “Air raid sirens blared as the two men walked together,” the clip dramatically continues, showing Biden shoulder to shoulder with Zelensky.

The video was timed to be released to coincide with Biden’s trip to the G20 summit in India, where he’ll likely have strong words for Putin, who will not be attendance. NBC writes of the spot entitled simply “War Zone”:

The new, 60-second advertisement will air in battleground states this weekend during the prime-time broadcast of “60 Minutes” while Biden is due to attend the G-20 Summit here, a gathering of leaders of the world’s largest economies that won’t include two geopolitical rivals, Russia’s Vladimir Putin and China’s Xi Jinping.

This comes as he’s set to pour yet billions more of American taxpayer dollars into Kiev’s coffers. Yet war observers and analysts have of late expressed intensifying concern over uncontrollable escalation in what’s now obviously a US-NATO proxy war against Russia. But Biden is doubling or tripling down, showing the world “what America is made of”, apparently.

At a moment Congress is mulling Biden’s latest request for more than $24 billion for Ukraine, one independent commentator has compiled a list of the mammoth aid sent so far. Again, the below is all “courtesy” of the American taxpayer, many of them unwilling of course…

  • 2/20/2023 $500 Million
  • 2/23/2023 $10 Billion
  • 2/24/2023 $2 Billion
  • 3/3/2023 $400 Million
  • 3/20/2023 $350 Million
  • 4/04/2023 $2.6 Billion
  • 4/19/2023 $325 Million
  • 5/08/2023 $1.2 Billion
  • 5/18/2023 $3 Billion
  • 5/19/2023 $375 Million
  • 5/19/2023 $40 Billion
  • 5/31/2023 $300 Million
  • 6/09/2023 $2.1 Billion
  • 6/13/2023 $325 Million
  • 6/16/2023 $205 Million
  • 6/20/2023 $6.2 Billion
  • 6/26/2023 $500 Million
  • 07/07/2023 $800 Million
  • 07/18/2023 $1.3 Billion
  • 07/21/2023 $400 Million
  • 08/13/2023 $13 Billion
  • 08/15/2023 $200 Million
  • 08/29/2023 $250 Million
  • 09/05/2023 $125 Million
  • 09/06/2023 $1 Billion
  • 09/07/2023 $600 Million

…and these are just the publicly disclosed funds spent – never mind what’s likely a massive CIA black budget for Ukraine.

Meanwhile, look how Huffington Post and the “never Trump” MSM is already framing the “issues” going into 2024… the GOP is supposedly “appeasing Putin”. According to the far left outlet, “As GOP Argues About Whether To Appease Putin, Biden Leans In On Support To Ukraine”:

Tyler Durden
Fri, 09/08/2023 – 18:40

Reinventing Democracy

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Reinventing Democracy

Authored by Charles Hugh Smith via OfTwoMinds blog,

The whole point of democracy and free markets is to force competition on elites who are desperate to eliminate competition.

What’s the point of discussing reforms that aren’t even possible in the current status quo? That’s a good question, as any discussion of major systemic changes can be dismissed as pointless (since they’ll never be adopted), and a distraction from the “real work” that can be managed within the current system.

On the other hand, we might ask: what’s the point of discussing what is do-able in the status quo, i.e. superficial feel-good policy tweaks that change nothing in the power structure? In other words, everything is ultimately a superficial feel-good policy tweak if it doesn’t change how power, “money,” credit and resources are amassed and distributed.

The argument for discussing “impossible” systemic changes is this: we must ponder other ways to structure who has power for two reasons: 1) to validate how far we descended into neofeudalism and neocolonialism, and thus how desperately we need to re-arrange the power structure, and 2) to explore different models of governance and economic incentives, with an eye on the value of competition between ideas and systems.

Richard Bonugli and I discuss ways to restore or reinvent democracy in our recent podcast, The Roundtable Insight Vision Series: Democracy (29:36).

Although this sounds cynical, it isn’t: democracy is not really about self-rule, it’s about keeping an elite-run system stable by institutionalizing a safety valve and a governor on elite greed, corruption and mismanagement.

Democracy gives the rabble a restricted voice as a means of limiting elite misrule, which is the natural path taken by elites everywhere, in all eras. The elite echo-chamber is: we’re entitled (by birth, rights granted by the gods, superior intelligence, merit, etc.) to rule, and therefore whatever we decide is wise–even if it is self-serving and delusional.

Other models of governance rely on competition between elites to keep whichever elite is currently dominant from destroying the whole arrangement via their hubris, narcissism, greed, corruption, stupidity, delusions of grandeur and all the other pathologies of power.

These models tend to fail because the dominant elite tends to see eliminating competitors as a very good strategy for consolidating power–just like corporations always seek monopolies or cartel arrangements to eliminate the pesky risks of open competition–which as we all know, introduces the possibility of losing, which a bad thing. To eliminate the possibility of losing, eliminate competition: what an excellent solution!

This is why “capitalism” isn’t really about free markets, any more than colonialism is about “civilizing the natives;” it’s all about eliminating competition and rigging markets. In this way, “capitalism” and democracy are a perfect partnership, as each claims a noble cloak to obscure the actual machinery of elite self-service.

The strength of democracy in system terms is it introduces a feedback loop that serves to limit systemically dangerous extremes, for example, a dictatorship that requires everyone to wear their underwear on the outside of their clothing, or (ahem) a system like ours that has boiled away social mobility and financial security, leaving a rapaciously exploitive machine that feeds off persuading poor people to borrow even more money to convince themselves that they’re not poor and powerless.

The wealthy own the income-producing capital, the poor “own” debt: the wealthy own the mortgage / auto loan / student loan, the poor owe the mortgage / auto loan / student loan. Funny how neofeudalism works: the financial aristocracy is in the castle, protected by the Central State, and the debt-serfs are toiling away down there, protected by, well, no one. But by all means, vote for your favorite actor on the tawdry side-stage erected to amuse the public: what flourishes, what emotion, what comedy.

(Please pardon the outburst of “truthiness.” I’ll try not to let it happen again.)

If democracy is boiled away, the only pressure-relief valve and governor-on-greed left is messy uprising or a messy uprising plus the wholesale abandonment of the status quo by the technocrat class that keeps the whole thing glued together (what I call opting out).

The prime directive in governance is to always, always, always centralize power to extend the reach of the elite currently at the wheel, and to limit the number of grubby hands trying to reach the wheel. Centralizing political power makes life considerably easier for elites, as they only need to bribe, blackmail or persuade a handful of folks at the top to cement their power / monopoly /cartel.

I discuss this in my book Resistance, Revolution, Liberation.

Consider the difficulties of cementing a quasi-monopoly on banking if banking were restricted to the county level. The would-be cartel grifters would have to bribe, blackmail or persuade 3,000+ county councils, all of whom are far closer to voters and far more exposed to competition than federal regulators or the Federal Reserve or Congress-critters, who as we all know, are re-elected like clockwork except in a few cases that are basically signal noise.

This illustrates the value of Subsidiarity in a democracy, with Subsidiarity defined as “the principle that a central authority should have a subsidiary function, performing only those tasks which cannot be performed at a more local level.”

The Subsidiarity principle only works in a democracy if capital is also democratized. What’s conveniently forgotten or left unsaid is: capital always “votes” three times.

1) Capital’s beneficiaries, allies and employees will vote to keep their gravy train running;

2) Capital influences the public with ad campaigns and public relations, all of which are quite affordable;

3) Capital influences the political / regulatory power players in private, a.k.a. lobbying, revolving doors between corporations and the political/regulatory agencies, junkets, farcically bloated speaking fees, etc.

The only possible conclusion: if we don’t democratize capital, democracy is boiled away. I wish this could be sugarcoated, but it’s much like my other aphorism: if we don’t change the way money is created and distributed, we’ve change nothing.

In other words, if we don’t change the money/credit system and democratize capital, then all we’ll ever have is more superficial feel-good policy tweaks: all sound and fury, signifying nothing.

There are ways to re-structure the system to restore / reinvent democracy. Ellen Brown has made a persuasive case for public / community banking for many years, and the same idea can be applied to private-sector companies: How Community Companies Can Smash Monopolies (via Sadie).

It seems impossible at this point to decentralize power and capital, but with the pressure-relief valve and governor-on-greed of democracy both disabled, the system is starting to shake apart at the seams. I’ve often discussed the various classes and elites jostling for power in the U.S., and it’s possible some elite might awaken to the necessity to restore the possibility that those with the vast majority of wealth and power might actually lose, i.e. restore real competition in the economy and our system of governance.

This competition starts with the competition of ideas. That’s the point of our discussion on Democracy (29:36), which covers many other interesting ideas for decentralizing / reinventing democracy.

Where to start? Here: the whole point of democracy and free markets is to force competition on elites who are desperate to eliminate competition.

(via K.K.)

*  *  *

My new book is now available at a 10% discount ($8.95 ebook, $18 print): Self-Reliance in the 21st Century. Read the first chapter for free (PDF)

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Tyler Durden
Fri, 09/08/2023 – 18:20

BofA Warns Clients Detroit Auto “Strike Almost Guaranteed”

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BofA Warns Clients Detroit Auto “Strike Almost Guaranteed”

The United Auto Workers are nearing the end of their negotiations with Detroit’s “Big Three” automakers – General Motors, Ford, and Stellantis, the producer of Chrysler – concerning a new four-year labor agreement for approximately 146,000 workers. The current labor contract expires next Thursday as the union has made demands that even the UAW’s own president calls “audacious.” 

General Motors and Ford have already sent their proposal contracts to UAW earlier this week and last — only to get quickly rejected. On Friday, Stellantis made its first proposal on wages of around 14.5% — still well under UAW President Shawn Fain’s demand of 46% over four years

The automakers’ underwhelming offers put President Biden in a tough spot ahead of next week. “Union Joe,” while relaxing at his beach house in liberal white-elitest Rehoboth Beach last week, said he ‘wasn’t too worried about potential strikes.’ 

Fain has described the labor talk discussions with Detroit’s Big Three as a battle between billionaires and the working class. As the deadline looms, none of the proposals have met the union’s demands, which has led John Murphy, a senior auto analyst at Bank of America Securities, to warn clients on Friday: “Strike almost guaranteed” next week. 

Murphy expects negotiations will result in a 25-30% increase in labor costs over the next four years with “sizable cash signing bonuses and adjustments to other benefits” once contracts are finalized. 

He said the word on the street is “UAW may offer a counter-proposal to the OEM offers shortly” but warned, “We continue to believe a strike is very likely after the Master Agreement expires next Thursday, September 14.” 

Murphy explained if a strike was to occur next Thur., then negative headlines could weigh down automaker stocks: 

Should this occur, it could drive some headline-related downwards movement to the stocks, but our discussions with investors and the valuations for GM and Ford (with the stocks down – 15% and – 9%, respectively since 7/31 vs. – 3% for S&P 500) suggest the stocks largely reflect the risks of a material strike. The UAW’s strike with GM in 2019 lasted 6 weeks and a one – to two-month strike appears to be the likely outcome here, in our view.

When BofA’s note was published, Stellantis had not disclosed their proposal to the union. Below is a comprehensive overview of the offers from Ford and GM and how they match up with UAW’s demands.

Everyone is eagerly awaiting UAW’s counter-offer before the deadline next Thursday. Union Joe may care a little more this weekend. 

Tyler Durden
Fri, 09/08/2023 – 18:00

The Rise Of Unapologetically Partisan News Reporting

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The Rise Of Unapologetically Partisan News Reporting

Authored by Carl M. Cannon via RealClear Wire,

The Huffington Post was envisioned from its inception as a progressive answer to conservative talk radio and various right-leaning voices being amplified by new technology. Most specifically, it was designed as a counterpoint to the Drudge Report, a widely read and highly profitable website with populist sensibilities. The players involved in planning the new venture belonged to a select clique of Hollywood liberals and political activists in Arianna Huffington’s orbit.

Among the cast of characters were film mogul David Geffen, a prodigious Democratic Party donor, along with Democratic political consultants Peter Daou and James Boyce. Jonah Peretti, a 30-year-old marketing whiz kid (and future BuzzFeed founder), was present at HuffPo’s inception, as was Kenneth Lerer, a New York investor who secured most of the money for the new venture.

The least likely member of the core group was Andrew Breitbart, a creative and energetic conservative blogger in his mid-30s who had worked on the Drudge Report himself. Although he passed muster with the group because he was relatively liberal on social issues, Breitbart’s real connection to the enterprise was that he had known Arianna Huffington since the 1990s — when she was still an outspoken conservative. The most charismatic collaborator, of course, was the eponymous founder herself.

“Arianna,” as everyone called her, first attained prominence in California politics as the wife of one-term Republican Congressman Michael Huffington, heir to a family fortune made in oil and gas exploration. Michael Huffington lost his 1994 Senate campaign, and the couple divorced in 1997. By 1998, Arianna was rejecting party labels and asserting that conventional “left-right divisions are so outdated.” Her evolution was just beginning. In 2001 she joined forces with environmental activist Laurie David in an endeavor dubbed the Detroit Project, which sought to shame automakers (and the Bush administration) into phasing out gas-guzzling cars and trucks.

By April 2004, Arianna was endorsing Democratic presidential nominee John Kerry on Jon Stewart’s “The Daily Show.” In July of that year, when asked during an interview in her stylish Brentwood home what she wanted out of life, Arianna replied, “I want George Bush defeated.”

Although this answer struck Los Angeles magazine writer Steve Oney as glib, it turned out to be sincere. When her wish didn’t come true — when Bush won reelection by defeating Kerry — Huffington pursued the online journalism venture that still bears her name. Meeting in that same house in the weeks after the 2004 presidential election, a new and overtly partisan outlet was fast-tracked. It launched on May 9, 2005.

Many traditional reporters and editors were troubled by the new direction journalism seemed to be taking. It wasn’t only the creation of the Huffington Post. Veteran political writers at venerable news organizations complained privately how sneering at Republicans, President Bush in particular, had become commonplace in their newsrooms. The legacy media had been considered left-of-center for decades, but something was changing. Conservatives had long complained about their treatment in the press (while progressives simply denied the existence of “liberal bias”), but open partisanship in newsrooms had long been discouraged.

The Huffington Post didn’t engage in any such charades. As it gained traction in the first decade of the new millennium, its editors made no pretense about which side of the ideological spectrum it occupied. Arianna certainly didn’t.

We are opposed to the war in Iraq,” she told Washington Post media reporter Howard Kurtz in 2007. “We think the troops should come home. [Huffington Post] headlines are going to reflect what is in the best interests of the country.”

A handful of media critics considered this trend not just refreshing for its candor, but an improvement over the old journalism model. For starters, they found it more intellectually honest. Also, at a time when the old advertising foundation was cracking, Huffington Post’s ability to quickly attract a huge readership showed that the Fox News business model might translate to the Internet. “Attitude is a huge positive, not a negative,” Ken Lerer told Kurtz. “People don’t have to love you. Maybe people come to you because they don’t love you.”

“Attitude” was only part of the Huffington Post formula. Initially, celebrity journalism was an ingredient of its secret sauce. Well-known Hollywood liberals such as Warren Beatty, Diane Keaton, Robert Redford and Julia Louis-Dreyfus graced its pages with their (typically liberal) takes. HuffPo gave space to prominent progressives ranging from Dennis Kucinich and Melinda Gates to Alec Baldwin and Bernie Sanders. Lefty activists Ralph Nader and Michael Moore were contributors, as were more traditional Democrats Gary Hart and John Conyers.

Their work was supplemented by the hiring of respected journalists such as Thomas B. Edsall and Mickey Kaus. The success of the enterprise also depended on the sheer volume of the site’s content. This was accomplished by several additional strategies. One was aggressively appropriating other outlets’ work, a practice that gave way to the slightly more kosher ploy of doing quick rewrites of other journalists’ work. (“Lynn Sweet: Obama Reorganizing Campaign, Reinforcing Leadership Ranks”). Finally, traffic was also driven by an army of “citizen journalists” who reported and wrote for HuffPo without remuneration.

All these efforts were overseen by a cadre of editors who carefully monitored readership traffic and changed headlines or swapped out stories that weren’t doing well. The site’s success inspired copycats, some of them on the right. Just as HuffPost was a response to Drudge, conservative properties such as the Daily Caller were launched as antidotes to what their founders considered a mostly liberal landscape, including Arianna Huffington’s new online powerhouse. (Once again, the ubiquitous Andrew Breitbart was in the middle of it.)

For the most part, these imitators mimicked the ideological imbalance of HuffPo. This view of the press — as a weapon for political advocacy — has only gained traction in the ensuing years, among partisans on both sides of the political divide.

“One reason conservatives hate the ‘mainstream media’ is that it pretends to be something it isn’t,” British columnist Nathan Robinson wrote in The Guardian. The editor of Current Affairs, an online socialist publication, Robinson suggested in his 2019 essay that readers are alienated by hypocrisy more than ideology. “The best course of action is to acknowledge where we’re coming from,” he wrote. “If we show an awareness of our own political leanings, it actually makes us more trustworthy than if we’re in denial about them.”

Some conservatives arrived at the same conclusion. Amid the feeding frenzy accompanying the Brett Kavanaugh Supreme Court confirmation process, a headline in The Federalist gave voice to this view: “The Entire Media Is Biased: They Should Just Embrace It.”

It’s a provocative point of view, but it raises other questions. Let’s start with one point raised by Nathan Robinson: “more trustworthy” to whom? Ideologues who agree with you already? Partisans who despise you, but give you credit for being honest? Perhaps. But what about moderates or political independents — or fair-minded partisans who crave a more fact-based diet of political news without the relentless spin? This cohort, which ranges from a significant minority to a plurality of the voting public depending on the issue, seems vastly underrepresented in the new landscape of political journalism.

Yes, it’s true that Fox News’ regular viewers generally find the network credible. Ditto for devotees of MSNBC. But these audiences are, by design, self-selecting peer review panels. Fox News’ motto since 2017 has been “Most Watched. Most Trusted.” The logic here is circular. Fox is trusted by those who watch it precisely because they know they’ll see what they want, which is bashing of Democrats and liberal elites and reflexively defending conservative personalities, politicians, policies, and culture. MSNBC and an increasing bloc of legacy media companies are Fox’s mirror image.

The original slogan at Fox News, coined by Roger Ailes when he and Rupert Murdoch launched the network in 1996, was “Fair and Balanced.” This claim, which has resurfaced recently, induced apoplexy among liberals, which was partly Ailes’ intent. But that’s not all it was meant to signify. Inside the network, the mantra was understood to represent an intention that wasn’t cynical at all. Operating in a predominately liberal media landscape, Fox was promising to be “fair” to Republicans and their voters by providing the “balance” conservatives found missing in the rest of the press.

One prominent Fox News journalist told me that those who dismissed Fox programming as being targeted to “a niche” market revealed the problem — and the key to Fox’s success. “Quite a niche,” he quipped. “Half the country.”

Profitability of a Partisan Press

Modern journalism — or, at least, modern American journalism education — dates to 1908 at the founding of the journalism school at the University of Missouri. The “J-school” is situated in the heart of the sprawling campus, which is fitting because the program has long been a source of pride for Mizzou graduates as well as journalists who’ve never even visited the college.

Walter Williams, the visionary who started the program and later became president of the university, wrote a “journalist’s creed” that has been etched in bronze at the National Press Club in Washington, D.C., since 1958, the 50th anniversary of the founding of Missouri’s journalism school. Some of its language sounds stilted today, but the larger question is whether the values of the creed are considered outdated in the 21st century.

Let’s consider three items memorialized by Williams’ creed:

  • A media property is “a public trust … and acceptance of a lesser service than the public service is betrayal of this trust.”
  • “Clear thinking and clear statement, accuracy and fairness are fundamental to good journalism.”
  • “Suppression of the news, for any consideration other than the welfare of society, is indefensible.”

Powerful forces in contemporary America are working to undermine those tenets. Financial considerations are one of them. In 2008, Fox News surpassed $500 million in annual profits. This was nearly as much as CNN ($410 million) and MSNBC ($148 million) netted combined — and a $200 million increase over 2007.

What happened in the centennial year of America’s first journalism school that made a television network with a readily identifiable point of view so profitable? Here’s part of the answer: A national political campaign took place featuring two Democratic presidential candidates whom Bill O’Reilly and other Fox News commentators pilloried relentlessly. These attacks appealed to conservatives, who flocked to Fox for the nightly skewering of Hillary Clinton and Barack Obama. Higher ratings translated into higher advertising revenues.

Executives at rival networks noticed. Progressive commentators, too. One anchorman in particular had been seething over Fox’s influence for years. As Howard Kurtz noted, MSNBC anchorman Keith Olbermann had already consciously positioned his nightly program as “a liberal alternative” to O’Reilly’s show. Years before Donald Trump arrived on the political scene, Keith Olbermann conducted public discourse like a New York insult comic.

Once, at a television award show, Olbermann gave O’Reilly a Nazi salute. When he wasn’t saying George W. Bush and Dick Cheney had committed impeachable offenses and should resign, Olbermann was accusing the president and vice president of being stupid, dishonest, cowardly, and hypocritical. Olbermann framed one segment on Bush thusly: “Pathological presidential liar or an idiot-in-chief?” On Valentine’s Day in 2008, he called Bush “a fascist,” and later that year urged John McCain to “suspend” his campaign. Most incongruously — and in an eerie foreshadowing of Trump’s own slurs against McCain — Olbermann declared that the acclaimed Vietnam War hero displayed a “disturbing lack of faith in America.”

Periodically, the suits at NBC would give lip service to reining Olbermann in, but their hearts weren’t in it. For one thing, the feud he initiated with Bill O’Reilly led to skyrocketing ratings. Liberal audiences loved it, and his show was one of the few MSNBC ever aired that made money. And after his contract was not renewed in 2011, it was clear that MSNBC had found its own niche. Olbermann’s place was taken by Rachel Maddow, a colleague he had mentored. The new anchor was brainy and hard-working, but just as liberal in her commentary. MSNBC had moved on from Keith Olbermann’s style, but not his substance. By August 2012, New York Times media critic Alessandra Stanley wrote a story titled “How MSNBC Became Fox’s Liberal Evil Twin.”

The context for Stanley’s essay was MSNBC’s coverage of the Republican National Convention that nominated Mitt Romney. Stanley wrote that the network’s “hyped up panelists” routinely dismissed Republican assertions as “lies,” while taking various cheap shots (Chris Matthews claimed that the GOP looks upon welfare recipients as “looters”). Stanley noted that in “recasting itself as a left-leaning riposte to Fox News,” MSNBC drew significantly more GOP convention viewers than CNN.

“That’s because,” she added, “MSNBC offers counterprogramming, not coverage.”

Four years later, Donald Trump’s victory pushed CNN into the MSNBC camp. The New York Times followed suit. What had once been known as the “mainstream media” began to feature entire platoons of Keith Olbermanns not only among commentators and anchors, but even among supposedly nonpartisan White House correspondents tasked with covering the news.

In the runup to Trump’s reelection campaign, journalist Matt Taibbi wrote a book about this development called “Hate, Inc.” In it, Taibbi attributed much of the press partisanship to bottom-line concerns. I initially thought his book title was too strong and that what openly partisan journalists were selling was indignation and outrage — and fear, maybe — but not hate. The events of Jan. 6, 2021, and their aftermath revealed that this may be a distinction without a difference.

Whatever one calls it, this much can be said: In contrast to New York Times owner Adolph Ochs’ 1896 vow that his newspaper would “give the news impartially without fear or favor, regardless of party, sect, or interest” (and unlike Walter Williams’ creed calling suppression of the news “indefensible”), 21st century media outlets have a habit of hyping and inventing negative information harmful to the political faction they disapprove of, while downplaying or censoring facts detrimental to the side they favor. For much of the 20th century, this wouldn’t have been considered journalism at all.

Rationalizing Regression

It’s not a cop-out to concede that the arrival of the digital age posed historic challenges to the economic model and cherished assumptions of traditional media. Amid the chaos, novel arguments were proffered. Many were simply acknowledgements of new realities. Some were conscious challenges to the status quo, while others sought to rationalize problematic behavior on the part of the media. Here are four such arguments:

  • Defenders of the new free-wheeling style of journalism point out, not inaccurately, that for much of America’s history the press was unabashedly partisan. Objective, non-biased reporting aimed at a mass audience was a post-World War I development that is no longer relevant to modern audiences, or even economically viable.
  • In an unfettered media landscape, news consumers can find a multitude of views and choose from among them. What could be more egalitarian? If you dislike Rachel Maddow, switch to Tucker Carlson. The old model was staid and boring, these advocates say — and elitist. If one disparages television or radio shows or podcasts with high ratings, isn’t one denigrating the American people?
  • Reprising a theme from the 1960s, another critique of the traditional model comes from those who attack the very concept of objectivity. Arguing from the standpoint of identity politics, these critics dismiss the term as a standard “that was dictated by male editors in predominately white newsrooms and reinforced their own view of the world.” In this school of thought, the exigencies of covering race, sexual identity — and even climate change — necessitate going beyond what’s disparagingly called “bothsidesism.”
  • The trend of conflating opinion and news was a defense mechanism to cope with a presidential candidate who arrived on the scene with no experience and no desire to tell the truth — and who used social media to circumvent the media’s traditional gatekeeper role. This point of view was notably offered in an influential August 2016 column by New York Times media critic Jim Rutenberg, who framed the dilemma this way: “If you’re a working journalist and you believe that Donald J. Trump is a demagogue playing to the nation’s worst racist and nationalistic tendencies, that he cozies up to anti-American dictators and that he would be dangerous with control of the United States nuclear codes, how the heck are you supposed to cover him?” Although he posed the dilemma as a question — and pointed out the pitfalls of appearing partisan — Rutenberg suggested that reporters who found the idea of a Trump presidency a danger would naturally “move closer than you’ve ever been to being oppositional.” Many did just that.

For purposes of this essay, let’s stipulate that those reasons are offered in good faith by people who care about the civic life of this nation. That does not make them right.

Back to the Future

Whatever one thinks of partisan journalism, those who say that it’s not a new phenomenon are correct. The first newspaper to cover politics on these shores, the New York Weekly Journal, is not only the publication that inspired the name of this series. A partisan organ, it helped foster the idea of a free press on this continent in 1735.

It’s also true that a partisan press helped bring America into existence. In 1776, the American Colonies had 50 newspapers, many of them agitating openly for revolution. By the time George Washington completed two terms as president, this number had quintupled. The Colonial-era press took sides in the nation’s most fractious disputes: The Federalist Party we associate with Alexander Hamilton and John Adams (and the Democrat-Republicans of Thomas Jefferson and James Madison) were identifiable by the newspapers that supported them. Six decades later, partisan newspapers stoked the passions that led to civil war.

“Editors unabashedly shaped the news and their editorial comment to partisan purposes,” Harvard historian William E. Gienapp noted in a study of 1850s American newspapers. “They sought to convert the doubters, recover the wavering, and hold the committed.”

Partisanship was extreme on both sides,” Lincoln scholar Richard Allen Heckman wrote a century after the Civil War ended. In what seems like a contemporary description, Allen added, “Republican and Democratic papers often arrived at opposite conclusions after witnessing the same event.”

Does this sound familiar? It should. After Hunter Biden’s business partner Devon Archer testified before the House Oversight Committee, most of the legacy media issued a verdict: Nothing to see here. Echoing Democratic Rep. Dan Goldman, The New Republic put this headline on its story: “New Transcript: Star Hunter Biden Witness Refuted Every GOP Talking Point. Hunter Biden’s former business partner, Devon Archer, undermined all of Republicans’ claims in his testimony.”

Meanwhile, Fox News had an entirely different take: The headline of its online story was “Devon Archer Transcript Shows How Democrat Rep. Goldman Spun ‘Illusion of Access’ Narrative.” Mind you, these are competing stories reporting on the very same transcript.

Not everyone sees this as a problem. But the events of Jan. 6, 2021, show what happens in a hyper-partisan political environment when “red” America and “blue” America have fundamental differences of opinion on something as basic as whether a presidential election was honest or a sham.

Americans of different races, creeds, generations, religions, geography, and political affiliation have always differed in their perceptions of politics and culture. But having a baseline set of shared facts turns out to be important. Political parties deliberately skew those facts for their own purposes. However, when journalists repeat those partisan narratives word for word — or, worse, amplify them — they are interfering with the prime directive.

Earlier this year, political scientists David Broockman and Joshua Kalla released a study showing how many Americans dwell in media “echo chambers” that not only bolster their existing political biases, but deepen their level of partisanship.

Most people who tune in to Fox News lean to the right, but Fox draws them further to the right,” Broockman explained. “Likewise, MSNBC is pulling those to the left further left. And neither side almost ever watches the other.

This is the succinct rebuttal to those with laissez-faire attitudes about partisan news coverage. Americans can get the other side of the story, if they try, but don’t often do so. Ken Lerer’s expressed hope that conservatives might read the Huffington Post to know what the other side is thinking is not how most people consume media.

It was always thus. In “The Press Gang: Newspapers and Politics, 1865-1878,” scholar Mark Wahlgren Summers wrote how common it was for publishers to knowingly print lies or simply ignore newsworthy events that reflected poorly on their party. “The truth was not suppressed,” Summers wrote. “It was simply hard to get in any one place.”

Readers who wanted to know what was really happening in local as well as national politics had to read several newspapers, not just one. The problem is that this is not how most citizens consume news, and it never was. My point here is that journalists in this country haven’t always even attempted to provide their readers, listeners, and viewers with the complete story. They haven’t always tried to tell the truth. But this elusive quest is the implied promise that helped create the idea of a free press in the first place.

‘The Best Cause’

Although rarely invoked today, the name John Peter Zenger still lingers in the recesses of American journalism’s institutional memory. The University of Arizona gives an annual award in his name. The National Press Club has a room named after him. A bronze plaque in New York City signifies the site of a local election, in 1733, covered by Zenger’s newspaper, The New York Weekly Journal.

For the better part of three centuries, Zenger’s sacrifice was praised whenever freedom of the press was mentioned. Arrested in November 1734 on charges of “seditious libel” after his newspaper criticized the royal governor of New York, Zenger persisted in publishing from jail with help from his wife and sons — and the political provocateurs who wrote the offending material. Nine months later, Zenger was acquitted in a sensational jury trial. Fifty years after that, Gouverneur Morris, a signer of the U.S. Constitution, wrote: “The trial of Zenger in 1735 was the germ of American freedom, the morning star of that liberty which subsequently revolutionized America.”

Although there is truth in this characterization, the story is not that tidy.

Peter Zenger, as he preferred to be called, arrived in New York harbor in 1709 speaking little English and facing daunting prospects. The Zenger family — Peter, his parents and two younger siblings — were among the 2,200 German refugees from the Palatinate region who sailed in a 10-ship flotilla to America in search of religious freedom. The crossing was harrowing: Some 470 of the migrants perished, among them Peter’s father. At 13, the oldest Zenger child needed to find a trade to help support his family.

The boy landed an apprenticeship with a publisher named William Bradford, a kindly Quaker who had followed his own father’s footsteps. In the early days of manual typesetting, publishing was an exacting, highly technical craft. There were other obstacles, too, including the scarcity of ink and paper. The biggest danger was running afoul of the authorities.

“To understate the matter, the printing trade was not much encouraged in colonial America,” Pulitzer Prize-winning author Richard Kluger noted wryly in his authoritative 2016 book, “Indelible Ink: The Trials of John Peter Zenger and the Birth of America’s Free Press.

William Bradford knew this lesson well. He’d essentially been chased out of Pennsylvania for running afoul of William Penn and the Quaker elders who controlled every aspect of life in the colony. Bradford’s sins — for which he was fined, briefly imprisoned, and had his printing presses confiscated — included the mere mention of Penn’s name in an annual almanac and daring to reprint the colony’s official charter.

But on both sides of the Atlantic, the most dreaded accusation was “seditious libel,” a felony. The American Colonies were ruled by Britain, where libel simply meant defaming or criticizing another person, especially someone associated with government. Under British common law dating to the notorious Star Chamber proceedings, truth was not a mitigating factor to the crime. “It is not material whether the libel be true or false,” the Star Chamber judges had ruled.

That’s because the aim of libel law wasn’t to regulate civic discourse in a way that made it more honest. The law’s intent was to preserve order and prevent rabblerousers from riling up the populace. The controlling legal authority in British common law, and by extension in the Colonies, was titled “A Treatise of the Pleas of the Crown.” Written by an English barrister named William Hawkins, it held that printers and authors were guilty of defamation if they wrote or printed words that exposed any person, alive or dead, “to public hatred, contempt, or ridicule.”

It did not matter if the defamed person already had a bad reputation. Taking Star Chamber logic to its ultimate, and ultimately perverse, conclusion, Hawkins explained “that it is far from being a justification of a libel that the contents thereof are true … since the greater the appearance of truth in any malicious invective, so much the more provoking it is.”

Political factions were just getting started in New York, then a city of 10,000 souls. Newspapers were a rarity as well. The only two printers in the colony were Willam Bradford and his former apprentice, Zenger. Neither man was much interested in the news business. Mostly they reprinted religious tracts and government-approved legal notices and texts, much of Zenger’s in Dutch and German. Eight decades before the dawn of the great New York publishing houses, all books in New York were imported from London.

This somnolent arrangement was disturbed by King George II’s 1732 appointment of a minor aristocrat and British military officer of little distinction named William Cosby to be the governor of New York and New Jersey. It was not an inspired appointment and Cosby’s preening nature and obvious greed immediately alienated the locals.

His initial grift, which ignited the political fires in New York, was his insistence that the previous acting governor turn over the portion of his salary from the time Cosby was named to the job — even though he didn’t arrive in New York for many months. His predecessor, a well-connected Dutchman named Rip Van Dam, sued Cosby. When the colony’s chief justice, Lewis Morris, ruled against the new governor, Cosby simply replaced Judge Morris. A powerful and formidable lawyer with a habit of holding grudges, Morris used numerous machinations to fight back. One of them was teaming with his friend and ally James Alexander, another powerful lawyer, to persuade John Peter Zenger to publish a new newspaper.

Appearing on Nov. 5, 1733 — 272 years before The Huffington Post — the first issue of the New York Weekly Journal carried the account of Lewis Morris’ political comeback: his election to the Assembly. For the next 10 months, in articles almost exclusively ghostwritten by James Alexander, the Journal published satire, limericks, and opinion pieces critical of Cosby, though never by name.

Nobody was fooled, however, least of all Cosby, who variously ordered the newspapers burned, pressured the colony’s other printer to respond in kind, and finally had Zenger arrested and charged with a crime. In preparation for trial, Cosby tried to pack the jury with his allies and installed a crony named James De Lancey as chief justice in the colony. When lawyer William Smith and his co-counsel James Alexander (the anonymous author of the anti-Cosby material in Zenger’s broadsheet) made a pre-trial motion for De Lancey to recuse himself, the judge instead kicked them off the case — and disbarred them on the spot.

This heavy-handed move backfired. Alexander sought the services of a Philadelphia lawyer named Andrew Hamilton. A native of Scotland, and not high-born, Hamilton had arrived in Virginia in his early 20s. He married into a Quaker family in Virginia, then moved to Maryland, where he helped write that colony’s laws and served in the legislature. After relocating to Pennsylvania in his 40s, Hamilton came to represent the family of William Penn, served as a member of the Pennsylvania Assembly, and supervised the construction of Philadelphia’s Independence Hall. Hamilton’s career signified the possibility of upward mobility in the New World. He was also considered the best trial lawyer on these shores. He would need to be.

As expected, the prosecutor argued that the libel laws of England were the de facto libel laws of New York and that any defamation against the crown — or its agents — was merely a matter of proving the identity of the author. In other words, insofar as the jury was concerned, there was no real defense at all.

Without exactly explaining why, Hamilton challenged this logic. He posited that the laws of England should not necessarily apply to New York. Judge De Lancey was utterly unpersuaded. “The jury may find that Zenger printed and published those papers and leave to the Court to judge whether they are libelous,” he responded. But the defense strategy was to talk past the judge — straight to the jury and, by implication, the wider court of American public opinion. Addressing his argument to Zenger’s peers, Hamilton was going for jury nullification: “I know that [the jurors] have the right beyond all dispute to determine both the law and the fact,” he intoned.

In his summation, Hamilton went further: “The question before the court and you, gentlemen of the jury, is not of small or private concern. It is not the cause of the poor printer, nor of New York alone,” he said. “No! It may in its consequence affect every free man that lives under a British government on the main of America. It is the best cause. It is the cause of liberty.”

The jury agreed with defense counsel. It returned quickly from its deliberations, and foreman Thomas Hunt called out the verdict: “Not guilty!” Hurrahs rang out through the courtroom, drowning out the demands of the judge for order. Something had been started that would be hard to quell.

Skeptics

As early broadcaster Westbrook Van Voorhis liked to say, time marches on. In the 1960s, a questioning era like our own, a slew of revisionist historians tossed cold water on the John Peter Zenger legend. For starters, he didn’t even write the material he was jailed for, they noted. And Gouverneur Morris, the Founding Father who eulogized the Zenger trial as “the germ of American freedom” and “the morning star” of liberty on these shores, was hardly an impartial chronicler: Lewis Morris was his grandfather.

Pulitzer Prize-winning constitutional scholar Leonard Levy characterized the image of Colonial America as a society that cherished freedom of expression as “a sentimental hallucination.” Stanley Katz, a star Princeton historian, wrote that libel laws were reformed, in due time, but not because of anything James Alexander wrote, Peter Zenger printed, or Andrew Hamilton argued to a New York jury in 1735. It was, Katz claimed, “as if Peter Zenger had never existed.”

Today, a more subtle kind of rethinking is taking place. Richard Kluger, who persuasively debunks the 1960s-era Zenger debunkers, gets to the heart of the matter. “William Cosby was almost surely an ignoble character during his 3½-year tenure in New York, but if he was in fact half the villain his colonial critics claimed, they failed to marshal firm evidence of it.”

Moreover, after its inaugural issue, the New York Weekly Journal never covered another election after Lewis Morris’ return to the Assembly. Instead, its pages were used to compare Cosby to Nero, refer to the governor as “our affliction from London,” and accuse him of cluelessly escorting a French naval officer around the town so he could see the city’s defenses. Consorting with the enemy was a serious charge then, as it is today, but Zenger’s paper wasn’t calling Cosby a traitor. It was accusing him of being “but one degree removed from an idiot.”

It was this kind of thing that prompted veteran newsman Bill Keller, in his New York Times review of Kluger’s book, to compare the New York Weekly Journal to the now-defunct gossip website Gawker. It was not intended as a compliment. More generally, ideologues on both sides invoke the style of America’s earliest newspapers to question the legacy, and even the virtue, of nonpartisan journalism and the striving for objectively.

In an interview with “Frontline” in the early days of online journalism, Scott Johnson, co-founder of the conservative online outlet Power Line, put it this way: “The fact that the press was partisan and wild and outrageous during the Revolutionary era, during the era in which the Constitution was ratified, was not only true then; it really is the tradition of the American press up until the Progressive Era, essentially yesterday. The press was always partisan.”

He’s not entirely wrong, but using this historic fact as an excuse to cover the news in a one-sided way today — trying to shape outcomes instead of merely to inform — misses the point of the jury’s verdict in the 1735 trial of Peter Zenger. His lawyer didn’t merely argue that government shouldn’t muzzle a free people. Andrew Hamilton compared a libel case in which a defendant couldn’t argue the truth of his statements to a murder trial in which the defendant couldn’t offer evidence that the victim was actually still alive.

This gambit was a bluff. No witnesses could prove the truth of the contention that Gov. Cosby was “but one degree removed from an idiot” any more than Keith Olbermann could prove the same about George W. Bush. In the Zenger trial, Judge De Lancey didn’t buy it anyway. Nonetheless, Hamilton risked contempt of court by pivoting directly toward the jury and saying, “Then, gentlemen of the jury, it is to you we must now appeal for witnesses to the truth of the facts we have offered and are denied the liberty to prove.”

Actually, neither side called any witnesses in that trial, but the jury took Hamilton’s point. Their verdict wasn’t an endorsement of defamation. It was a recognition that if a people are to be free, they have the right to pursue the truth and tell it as best they can — and that neither government nor any political faction has a monopoly on veracity. Pursuing truth, not partisanship, was the principle that carried the day in a New York City courtroom on Aug. 4, 1735.

Citizen Journalists

The Zenger saga has an instructive postscript. It occurred 273 years later, just three years after the launch of The Huffington Post.

As it turned out, Arianna Huffington’s interests went far beyond creating an online media counterweight to George W. Bush’s presidency. Focusing on the future of journalism at a time when the old media’s business model was already under financial stress, Huffington joined forces with well-known New York University journalism professor Jay Rosen to create an army of “citizen journalists.”

Launched in early 2007, the venture was named “OffTheBus,” a sly reference to Timothy Crouse’s classic 1973 book on presidential campaign reporting. This endeavor was a subversive response to the good-old-boy reporting network Crouse immortalized. OTB’s tag line was “Campaign coverage by people who are not in the club.”

Ultimately, it engaged some 1,700 unpaid writers to cover the 2007-2008 presidential cycle. This all-volunteer army was overseen by a tiny staff of professionals. One was Marc Cooper, a progressive political writer and University of Southern California journalism professor. Another was Amanda Michel, who today is director of global engagement at The Guardian but in 2007 was a 29-year-old wunderkind with no formal journalism training. Her talent was harnessing online communities, which she’d learned while working on the Howard Dean and John Kerry presidential campaigns.

Their team would produce thousands of stories and countless page views and attracted some 5 million unique visitors to Huffington Post’s website in October 2008 alone. Its best-remembered story, by far, was an account of an April 6, 2008, political fundraiser in Pacific Heights, a toney San Francisco neighborhood. The candidate was Barack Obama. The HuffPo citizen journalist in attendance was Mayhill Fowler, a 61-year-old native Tennessean who lived across the bay in Oakland.

In the decades since she’d graduated from Vassar and moved to the Bay Area to study at the University of California at Berkeley, Fowler had wed and worked sporadically, by her own account, as “a teacher, editor and writer, but mostly raised two daughters.” An uncommonly thoughtful person, she had quickly emerged as a favorite among OTB’s editors — and readers. In an October 2007 piece on OTB, New York Times political writer Katharine Seelye singled Fowler out as one of the site’s “emerging star correspondents.”

Fowler took a particular interest in Obama. She contributed the maximum $2,300 to his campaign, which was not only normal for OTB citizen journalists, but was encouraged, as it granted them increased access to campaigns they were covering. Fowler had previously traveled at her own expense to see Obama campaign in the Midwest and in Texas, but the San Francisco event was close to home so she wrangled an invite to the fundraiser, which was closed to the mainstream press. With Obama leading Hillary Clinton in pledged delegates, the conversation that night turned to the looming Pennsylvania primary. From the audience, some of whom were preparing to go east for the faceoff, came a question: What could they expect when they went to campaign in the Rust Belt?

“You go into these small towns in Pennsylvania and, like a lot of small towns in the Midwest, the jobs have been gone now for 25 years and nothing’s replaced them,” Obama replied. “And they fell through the Clinton administration, and the Bush administration, and each successive administration has said that somehow these communities are going to regenerate and they have not.”

So far, so good. Then Obama added: “And it’s not surprising then they get bitter, they cling to guns or religion or antipathy toward people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.”

Fowler had covered Obama when he campaigned across Pennsylvania and that’s not what he had said to the faces of those voters, and she was “taken aback” by his judgmental tone.

“I’m a religious person, and I grew up poor in a very wealthy family — sometimes we didn’t have enough to eat, but my larger family was rich,” she told Seelye in an April 2008 story, adding that her father was a hunter. “Immediately, the remarks just really bothered me,” Fowler added. “For the first time, I realized he is an elitist.”

Fowler had a dilemma. She was smart enough to know the sneering remarks about rural Americans might hurt the candidate whom she still wanted to win. She confided in her husband, who didn’t see anything particularly wrong with what Obama had said. But it nagged at her and she called Amanda Michel. To Michel’s credit, she advised Fowler, “If you’re going to cover the campaign, you have to not be partial or your coverage isn’t worth as much as it could be.”

So, following her gut feeling and her editor’s supportive advice, Fowler blogged about the incident. Hillary Clinton’s campaign pounced, and the mainstream media jumped on the story (often omitting Fowler’s name). Some Obama fanboys attacked her for being disloyal, but Team Huffington rallied behind her. Arianna defended her reporter in a blog post while vacationing on a yacht, lambasting Clinton’s campaign. Jay Rosen, one of the most level-headed advocates of the proposition that disclosure of bias is preferable to feigned objectivity, examined the ethical questions thoroughly on his blog. After the campaign was over, Michel did something similar for Columbia Journalism Review.

Almost two years later, Fowler published an e-book on the election, “Notes From a Clueless Journalist: Media, Bias and the Great Election of 2008.” It’s a nuanced and informative book, as anyone who read Fowler’s blog would expect. In the preface, she explains her motives, not just for writing about the Pacific Heights fundraiser, but also chronicling the inspiring saga of Barack Obama himself. “All I cared about,” she wrote, “was getting the election story.”

Notwithstanding the title of her book, traditional reporters who read it or followed her writing found Fowler anything but clueless. She came across as committed, empathetic, curious, intellectually honest, and highly ethical. It gave many of us hope for the future.

But here’s the rub, the postscript to the postscript, if you will: If something like that happened today, would an online media outlet with a clear point of view deign to report it? For that matter, would the legacy media? The treatment of the Hunter Biden laptop story suggests an answer, and it is not an encouraging one.

Tyler Durden
Fri, 09/08/2023 – 17:40

America’s Closer To “Imploding Under The Weight Of Its Own Absurdities” Than Many Realize

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America’s Closer To “Imploding Under The Weight Of Its Own Absurdities” Than Many Realize

Authored by James Howard Kunstler via Kunstler.com,

A Theory Of The Game

“…a system that has been hollowed out by a string of cascading failures runs into one more crisis than it can tolerate, and implodes under the weight of its own absurdities. We are much closer to such scenes in North America and Western Europe right now than I think most people realize.”

– John Michael Greer

Hillary Clinton’s 2016 loss was a bigger shock to the Washington DC deep state Blob than Donald Trump’s victory. But the dynamics of this trauma operated at many levels. At the most superficial level was the hysterical response of Democratic Party rank-and-file women who regarded Donald Trump as the most extreme and horrifying embodiment of an archetypal “bad daddy.” This was all sheer psychodrama of course, but women are engrossed with psychodrama — generating it and relishing it — which men often fail to appreciate.

In cases of madness, there is often a dark, sordid secret behind the weird behavior that presents outwardly.

In the group madness provoked by Hillary Clinton’s loss, the dirty secret was that she had actually bought the Democratic National Committee in 2016, meaning the machinery that runs the party. She used lavish contributions to the Clinton Foundation to accomplish that. And Hillary along with her foundation — and husband Bill, who had been reduced by late career misadventure to a kind of political fashion accessory — had committed any number of grave crimes against our country over the years, especially during her service as Barack Obama’s Secretary of State. Think: Skolkovo… Uranium One…. In 2016 Hillary used her ownership of the DNC to underhandly de-rail the likely Democratic primary winner, Bernie Sanders, from being nominated.

The initial act of madness by the “Resistance” on Mr. Trump’s inauguration day was the women’s march of pink pussy-hats, so called, a symbolic exhibition of fleering female genitalia in Mr. Trump’s face, so to speak, as an act of defiance against the new national daddy figure (and his millions of deplorable supporters watching the ceremonies on TV). This proved to be a mere overture to the more extreme sexual acting-out that evolved in the years to follow, overall a campaign to horrify people of normal appetites, beliefs, and moral codes, culminating in the drag queen story hours aimed at maximally inducing outrage among people organized as families.

All of that psychodrama was hijacked, of course, by the serious neo-Marxists lurking among the Left, who used it in the usual neo-Marxian way: to overthrow everything in the established social order. And who were these? The circle around Barack Obama. And who was Barack Obama exactly? Good question. This mysterious figure who rose so swiftly from being, briefly, a mere state senator in Illinois, then to the US Senate — for only a few years, accomplishing next to nothing there — then to being nominated for president, and actually winning the 2008 election!

Since we’re speaking in terms of psychodrama, Mr. Obama was liberalism’s wish-fulfillment: a half-century after the Civil Rights movement, America elects the first black president (half-black, anyway)! Liberalism needed, above all, a sense of moral superiority, to heal an imperfect world, to be ahead-of-the-curve in mankind’s implacable march of progress toward perfection, and especially to set an example for how to live for all those gun-loving, bible-thumping, meth-smoking, opiate-scarfing, racist, rapist flyover rubes who would dare to vote for such misogynistic vermin as the TV-clown Donald J. Trump.

It was known, at the time, that Mr. Obama was a close associate (probably an apostle of) Chicagoan Bill Ayers, a former leader of the 1960s domestic terrorism group called The Weathermen. But by 2008, Mr. Ayers had managed to rehabilitate himself into professor of education at the U of Illinois Chicago campus, and hitched himself to Chicago school czar Arne Duncan, who would be appointed Secretary of Education by Mr. Obama, opening the doors for a neo-Marxist coup in the public schools — now on display in the battles raging over race-and-gender-Marxism installed in the Common Core State Standard Initiative.

To what degree was Mr. Obama a tool of other forces lurking in the deep background of world politics, and what are these forces?  Many of the non-Left will say they are a loose consortium of corporate and financial actors desperate to keep in motion a set of rackets that magically stabilize business-as-usual, which asset-strips the remaining wealth of the middle classes and transfers it to the already super-wealthy.

I’m not so sure about that, though the role of Davos remains persistently murky. Why, after all, would the super-rich invite as front-man a crypto-Marxist, as Mr. Obama is alleged to be, dedicated to destroying the existing social order that is the very ecosystem of the super-rich? Is it possible that Mr. Obama is fronting for nothing more than Mr. Obama now, desperately, as they say, weaponizing the “Joe Biden” government against its own people just to save Barack Obama from discovery, infamy, and loss of power?

Mr. Trump proved to be easily controllable in office. With the Blob and all its primary agencies marshalled against him, he was systematically disabled and humiliated by serial Blob hoaxes during his tenure, culminating in the bizarrely successful criminal plot to launch Covid-19 as an election-rigging device. Mr. Trump was thereby neatly disposed of in 2020. Of course, RussiaGate, The Mueller business, Impeachment No. 1, and Covid-19 were all essentially acts of treason and perfidy — that is, high crimes committed by the Democratic Party.

“Joe Biden” was Mr. Obama’s device for wresting control of the DNC from Hillary Clinton’s gang. But now “Joe Biden” has criminal problems of his own that threaten to take down not only his own presidency, but everything connected to it, namely his controller, Mr. Obama & Company, and the Democratic Liberal order itself driven insane by its own criminality. Meanwhile, his nemesis, Donald Trump has proven to be extraordinarily resilient in the remorseless war against him. And now that has culminated in the (so far) four cockamamie criminal cases cooked up by Obama / “Biden” as the final line of defense against the Golden Golem of Greatness — who obviously has no intention of surrendering.

It looks like Mr. Obama is now in the process of being “outed” as something other than the suave performer he was for two terms in the White House. The Tucker Carlson interview with one Larry Sinclair, a gay cruiser and druggie who claims to have frolicked with Mr. Obama before he was a celebrity, was met with ominous silence in the mainstream media. They didn’t even dare denounce it to avoid drawing more attention to it. And the mysterious “drowning” of the Obama family’s chef, Tafari Campbell, paddleboarding at night in the shallow bay off the Obama estate on Martha’s Vineyard, remains woefully under-investigated.

Will Barack Obama and “Joe Biden” end up sinking each other and the Democratic Party with them? And then, Will Robert F. Kennedy, Jr. be called in to rescue the darn thing while driving all the demons out of it?

*  *  *

Support his blog by visiting Jim’s Patreon Page

Tyler Durden
Fri, 09/08/2023 – 16:20

‘Better’ Data Buggers Bonds & Bullion; Beijing, Banks, & Big-Tech Batter Stocks

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‘Better’ Data Buggers Bonds & Bullion; Beijing, Banks, & Big-Tech Batter Stocks

A rebound in macro data, relative to expectations this week, was notable, but it was driven mostly by ‘soft’ data upside surprises (and worse still, inflation-expectations rose amid slowing growth signals)…

Source: Bloomberg

Nevertheless, the market saw strength and repriced STIRs hawkishly higher on the week

Source: Bloomberg

And that weighed on risk-assets.

Small Caps were clubbed like a baby seal this (holiday-shortened) week but all the majors ended lower…

Energy stocks dominated the week (and are up for the 9th day in the last 10) and along with Utes were the only sector in the green. Industrials and Materials were the laggards…

Source: Bloomberg

Apple suffered its second worst week since November (down 10% from highs in July) as Beijing started to clampdown on iPhone use…

AI Beneficiaries suffered this week as they failed to make a new cycle high and slipped lower…

Source: Bloomberg

…led by a big drop in NVDA, back below pre-earnings levels..

Regional bank stocks are down for the 5th week in the last 6…

…and judging by the continued surge in their usage of The Fed’s emergency funds, there could be more to go to the downside…

Source: Bloomberg

The big winners of the week were fat-loss-drug-peddling companies (GLP-1) which outperformed the market and so-called ‘at-risk’ companies (healthcare-related firms face pressure from lower obesity, reduced cardiovascular events)…

Source: Bloomberg

It has been a big trade YTD…

Source: Bloomberg

Treasuries were mixed again today with the long-end outperforming (30Y -1bps, 2Y +3bps). On the week, all yields were higher, led by the short-end…

Source: Bloomberg

2Y Yields spiked back above 5.00% early in the week but ended back below it as the the yield curve flattened significantly…

Source: Bloomberg

The dollar surged to its best week since February and its highest weekly close since December. The dollar has risen for 8 straight weeks…

Source: Bloomberg

China’s offshore yuan fell for 5 straight days against the dollar for its worst week since February to close at a record low against the greenback…

Source: Bloomberg

Notably though, the renminbi has traded stronger relative to its trade-weighted peers (i.e. against everyone but the dollar, the yuan is strengthening)…

Source: Bloomberg

Crypto had a quiet week, interrupted by yesterday’s pump and dump, with Bitcoin hovering just below $26,000…

Source: Bloomberg

Oil prices rallied for the 9th week of the last 11 with WTI pushing up towards $90 (its highest weekly close since November)

Gold was modestly lower on the week (using the same time period as the chart above for some context)…

NatGas, Silver, And Crude were all down hard on the week…

Source: Bloomberg

Finally, we point out comments from Goldman’s trading desk that Cyclical stocks and High-Yield credit (and credit-sensitive stocks) are priced extremely optimistically with the ‘soft-landing’ narrative now consensus…

However, as they highlighted, goldilocks is required as ‘too-strong’ data could lead to higher real rates (bad for risk assets), and ‘too weak’ data could severely disappoint current cyclical pricing.

Tyler Durden
Fri, 09/08/2023 – 16:00

Slide In Consumer Credit Accelerates As Excess Savings Exhausted, Average Credit Card Rate Hits 22%

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Slide In Consumer Credit Accelerates As Excess Savings Exhausted, Average Credit Card Rate Hits 22%

Last month’s consumer credit report was a big shock because it revealed that, for the first time since the covid crash, consumer revolving credit declined by $0.6 billion as Americans paid down their credit card debt, something they only do when a recession looms, which prompted us to conclude that the US consumer had finally tapped out.

Well fast forward one month, when consumers had two more major headaches to add to their list: i) the restart of student loan and interest payments, and ii) the exhaustion of over $2 trillion in excess savings from the covid crisis, according to JPM calculations.

But since Americans have only three modes: sleep, eat and shop (sometimes the three are combined into two or even one), it was not a surprise that with savings now exhausted, US households which had already maxed out their credit cards, had to dig extra deep in the month of July to “charge it”, which they did thanks to a surge in revolving credit (i.e., credit card debt) which surged by $9.6BN after June’s shocking $872 million drop.

The ~$10BN increase in revolving credit pushed the total outstanding to $1.271 trillion, a new all time high, and one which comes just as the personal savings rate drops to just 3.5%, the lowest since November 2022, and adding to the woes from the excess savings depletion. In other words, rarely if ever have US consumers been in worse shape.

But while revolving credit surged, if only out of necessity to keep up with an unsustainable lifestyle, non-revolving credit barely rose, and two months after suffering the biggest drop since the global financial crisis, non-revolving rose by just $0.8 billion, a stark outlier to a series which in the past decade had increase on average by an average of $10 billion monthly.

And while revolving credit did unexpectedly soar, the combined monthly increase in revolving and non-revolving credit confirms what we already know: the gradual decline since the peak levels of 2022, when the number was in the mid-$30 billion range every month, to just $10.4BN this month, down from $14.9 billion, confirms that the US consumer is increasingly retrenching, and the momnt hte black line turns decidedly black, one can declare the recession as started.

Drilling deeper into the non-revolving credit print reveals that not all is well here either, because while in Q2 auto loans increased by a healthy, if hardly, blockbuster $17.6 billion (to be expected when rates on 60-month auto loans are at all time high), student loans actually shrank by $9.1 billion, the first decline since Q2 2022, and at a time when most student borrowers are still in forebearance.

And now that repayment of student loans has officially resumed (we will get the September data in early November), watch out below.

Meanwhile, with average credit card interest rates rising above 22% to a new record high…

… the real drop in credit card debt is only just starting.

Tyler Durden
Fri, 09/08/2023 – 15:52