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REI To Close Portland Store, Citing ‘Safety Of Our Employees’ And ‘Out-Of-Control’ Thefts

REI To Close Portland Store, Citing ‘Safety Of Our Employees’ And ‘Out-Of-Control’ Thefts

Add outdoor retail giant REI to the growing list of companies planning to close stores in Portland, Oregon, because of rampant lawlessness in the Democrat-controlled city. 

Oregon Live said REI notified customers on Monday about plans to close its store in Portland’s Pearl District early next year. The retailer said its store in Portland “had its highest number of break-ins and thefts in two decades, despite actions to provide extra security.”

“While we do not believe a downtown Portland location will be possible in the near term, our stores in Tualatin, Hillsboro, and Clackamas remain open and ready to outfit you with the gear and advice you need to enjoy life outside,” REI told customers.

REI spokesperson Megan Behrbaum told the local media outlet that REI had made numerous investments in theft prevention, including hiring private security, surveillance technology, and security glass. She said despite all of this, the break-ins and shoplifting continued. 

“The extra security measures required to keep customers and employees safe are not financially sustainable.

“We will continue to invest in these areas through the remainder of our lease, but cannot justify continuing this expense through a lease extension beyond early 2024,” Behrbaum said. 

REI has been added to the list of major retailers shuttering stores in Portland. Walmart and Cracker Barrel called it quits last month. Nike also closed a store to public access, telling city officials that shoplifting was the cause.

According to the Portland Police Bureau, burglaries, robberies, vehicle thefts, and vandalism have surged over the last several years. The jump in violent crime comes just after the city elected a progressive district attorney in 2019 that implemented social justice reforms that have largely backfired. 

Portland was once known as the ‘crown jewel of the West Coast’ for its trendy art and food shops but is now transforming into a liberal hellhole of lawlessness as businesses have no choice but to exit to protect margins.  

More broadly, Portland isn’t the only liberal metro area experiencing business flight. Out-of-touch city leaders in Chicago were furious last week with Walmart’s plan to close stores.

Tyler Durden
Wed, 04/19/2023 – 21:20

The House GOP Effort To Defund – Not Police, But Wokeness

The House GOP Effort To Defund – Not Police, But Wokeness

Authored by Ben Weingarten via The Epoch Times (emphasis ours),

Through executive orders and budget requests, the Biden administration has sought to embed “diversity, equity, and inclusion” principles across the entirety of the federal government – and in turn to touch the lives of every American. Now members of  the Republican House majority, who see this whole-of-government effort as a woke assault on America and its core values, are working to combat it using the power of the purse. 

In a series of letters to House appropriations leaders, Rep. Jim Banks and like-minded colleagues have identified and called for the defunding of all “‘woke’ programs and initiatives that are rooted in discrimination and promote far-left ideology in the federal government” in 2024 spending bills. 

The letters, obtained exclusively by RealClearInvestigations, are a product of Banks’ Anti-Woke Caucus, a 26-member group of House Republicans launched by the former chair of the Republican Study Committee earlier this year, and notably counting among its members Rep. Elise Stefanik, chair of the House Republican Conference, members of the House Freedom Caucus, and others. 

Banks and caucus members delivered the letters to the chairmen and ranking members of each of the 12 House Appropriations Committee subcommittees in late March following the release of President Biden’s $6.8 trillion 2024 budget request.  

Each letter flags examples of “woke” offices or policies to which Congress allocated funding in relevant 2023 spending bills, and the associated dollars, and calls for those “and all programs that discriminate based on race, gender, and sexual orientation or seek to disparage our nation’s core ideals and history [to] be decreased to $0” in the 2024 versions of the bills. 

A narrow reading of the line items characterized as woke in the letters – which represent only a partial accounting of such programs and initiatives – shows that such programs totaled over $900 million in 2023. 

Some of the 2023 programs the Republican members seek to zero out in 2024 include: 

  • The Commerce, Justice, Science, and Related Agencies Appropriations Act’s more than $200 million in spending on programs aimed at increasing race-based hiring and recruitment in STEM. 

  • The State, Foreign Operations, and Related Programs Appropriations Act’s $200 million for the Gender Equity and Equality Action Fund. 

  • The Interior, Environment, and Related Agencies Appropriations Act’s $108 million for “environmental justice” activities. 

The $900 million outlay excludes broader items highlighted in the letters, like the $3.5 billion earmarked for energy efficiency and renewable energy in the 2023 Energy and Water Development, and Related Agencies Appropriations Act. Given that the letters represent only a partial accounting of such programs, the vagueness of budget language, and the discretion with which federal agencies can act, tax dollars advancing such efforts may well substantially dwarf these figures. 

The letters also target language in the 2023 versions of: 

  • The Commerce, Justice, Science, and Related Agencies Appropriations Act, claiming that “white supremacists and violent anti-government domestic extremists” are “infiltrating security and law-enforcement agencies.” 

  • The Department of Homeland Security Appropriations Act, directing Immigrations and Customs Enforcement to detain transgender illegal aliens at facilities only with staff who have received “LGBTI Sensitivity and Awareness Training,” and medical personnel with experience delivering hormone therapies. 

  • The Energy and Water Development, and Related Agencies Appropriations Act, requesting that the Department of Energy consider social equity and environmental and energy justice in state and community energy programs. 

“We believe that the House Republican majority has a responsibility to use its spending powers to ensure that we do not contribute further funding to anti-American and divisive initiatives,” the signatories to each letter wrote. 

Tough Odds

They face tough odds given Democratic control of the Presidency and Senate and the persistence of budgetary gridlock in Congress. Though the House has primary power under the Constitution to tax and spend, only three times in the last 47 years has Congress completed a budget in advance of the subsequent fiscal year, which begins October 1 — often relying instead on continuing resolutions that temporarily fund the government at existing levels. This year spending disagreements extend to negotiations to avert a U.S. debt default by relaxing the limit on federal borrowing, a ceiling some expect the government to reach this summer; in those talks, the Biden administration has refused to contemplate any cuts at all.

Should Congress pass and President Biden ultimately compromise on a budget that does not wholly comport with his progressive priorities, his administration could be expected to circumvent the anti-woke constraints. In a recent precedent, President Trump declared a national emergency to justify redirecting funding to build a southern border wall that Congress had not so allocated. The courts ultimately blessed that effort. But in his first day in office, President Biden froze it.  

When asked about chances of GOP success in the present effort, Rep. Banks told RCI that:  

This needs to be the Republican majority that says enough is enough. Speaker Pelosi famously said “show me your budget and I’ll tell you your values.” This appropriations cycle, Republicans need to show that we value liberty, patriotism and legal equality and that we reject dividing Americans based on race, anti-Americanism, radical gender ideology and climate hysteria. 

Even if the defunding effort fails, the Banks-led coalition may see a political benefit to pursuing it: pushing Democrats in the 2024 election cycle to stake out positions on more deeply ideological – and presumably less broadly popular – programs.

RCI asked ranking Democrats on several of the appropriations subcommittees for comment on the Banks letters, and had not received any responses at the time of publication. 

The House Anti-Woke Caucus members’ budget requests represent its most extensive legislative effort to date. 

In March, the caucus reportedly held its inaugural dinner and endorsed its first piece of legislation, the Fairness, Anti-Discrimination and Individual Rights (FAIR) Act. Sponsored by Anti-Woke Caucus member Tom Tiffany, a Republican from Wisconsin, the bill would bar any federal agency, contractor, state, or private entity that receives federal funding from discriminating against or granting preferential treatment on the basis of race, color, or national origin. 

Banks announced he would be establishing the Anti-Woke Caucus in January, pledging to “fight institutionalized wokeness” – an announcement that came just days before he would declare his candidacy for an open U.S. Senate seat in Indiana in 2024.  

In an interview for RealClearPolitics in February, the Indiana congressman indicated that the caucus had three missions – the first two to which the appropriations subcommittee letters seem to aim: To “Identify Wokeism, defund it and uproot it, and then hold those accountable for it.” 

Banks added that wokeism is “a cancer that’s going to eat our country inside out and kill us if we don’t do something about it.” 

Tyler Durden
Wed, 04/19/2023 – 21:00

Home Foreclosures And Missed Credit Card Payments Surge As Consumers Buckle

Home Foreclosures And Missed Credit Card Payments Surge As Consumers Buckle

In the first quarter of this year, home foreclosures surged, as reported by property data firm Attom. Following a two-year lull, pandemic-related housing assistance programs are winding down. Homeowners who chose not to make mortgage payments are now either negotiating new terms with lenders, selling their properties, or, as current trends suggest, facing foreclosure. This troubling rise coincides with consumers falling behind on their credit card payments.  

While still below pre-pandemic levels, foreclosure filings during the first quarter of 2023 totaled 95,712 properties, up 6% from the previous quarter and 22% from a year ago. This was the 23rd consecutive month with a year-over-year increase in foreclosure activity. 

“Despite efforts made by government agencies and policymakers to try and reduce foreclosure rates, we are seeing an upward trend in foreclosure activity,” Rob Barber, CEO at ATTOM, said in a statement. He continued:

“This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.”

Much of Attom’s data was recorded before Silicon Valley Bank’s demise. A credit crunch followed and sparked further busting of the tech bubble that added capital destruction in private equity and venture capital firms. Now real estate investments, primarily commercial real estate, are being significantly reevaluated as more financial stress is boiling up. 

Making matters worse is 24 months of negative real wage growth for consumers who’ve maxed out credit cards and drained personal savings. Lower-tier consumers are coming under pressure as big banks are beginning to notice a startling uptrend in credit card and loan payment delinquencies. 

“We’ve seen some consumer financial health trends gradually weakening from a year ago,” Wells Fargo Chief Financial Officer Mike Santomassimo said on an earnings call last Friday.

Banks have tightened their lending standards ahead of expected turmoil among consumers. 

Wells Fargo set aside $1.2 billion in the first quarter to cover potential loan losses.

Bank of America provisioned $931 million for credit losses in the quarter, much higher than the $30 million a year prior but below the fourth quarter $1.1 billion provision.

JPMorgan more than doubled the amount it set aside for credit losses in the first quarter from a year earlier to $2.3 billion, reflecting net charge-offs of $1.1 billion. –Epoch Times

UBS analysts led by Erika Najarian believes mounting macroeconomic headwinds would lead to “credit deterioration throughout 2023 and 2024 with losses eventually surpassing pre-pandemic levels given an oncoming recession.” 

Najarian said loan defaults are forecast to stay “below the peaks experienced in prior downturns.” 

However, we’re noticing that consumers are buckling under financial pressure—an ominous sign of trouble ahead

Tyler Durden
Wed, 04/19/2023 – 18:40

Chinese Lab Developed COVID-19 Virus, Senate Report Claims

Chinese Lab Developed COVID-19 Virus, Senate Report Claims

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

The COVID-19 virus originated in a Chinese laboratory and was leaked unintentionally, a new U.S. Senate report concludes.

The virus, SARS-CoV-2, leaked from the Wuhan Institute of Virology (WIV), which tests bat coronaviruses, twice in 2019, researchers conducting the report say.

The preponderance of information supports the plausibility of an unintentional research-related incident that likely resulted from failures of biosafety containment during SARS-CoV-2 vaccine-related research,” the 301-page report, released on April 17, states.

Sen. Roger Marshall (R-Ky.), a member of the Senate Health Committee, released the report, which was produced by a team that included Dr. Robert Kadlec, a longtime former government health official who played a key role in developing the COVID-19 vaccines, and staffers on the U.S. Senate Committee on Health, Education, Labor, and Pensions, where Marshall chairs the Subcommittee on Primary Health and Retirement Security. The final report updates an interim report released in the fall of 2022.

Researchers started with two hypotheses, Marshall told reporters in a briefing. One was that the virus started in animals before spilling over to humans, known as a natural origin. The other was a leak from the Wuhan lab, located in the same city where the first COVID-19 cases were detected in late 2019.

They exhausted every piece of evidence that they could find, every resource witness that they could talk to, to come up with conclusions,” Marshall said.

Kadlec’s team of consultants spent approximately 18 months probing the COVID-19 origins and concluded that the available evidence supports a lab leak.

More specifically, there was likely an aerosol leak that caused an infection of lab personnel or the virus may have been released to the outside environment due to biocontainment failures. One theory revolves around cleaning agents causing corrosion of welded seams in the lab, a possibility mentioned in multiple 2019 documents on upgrading the lab.

“Patents addressed biocontainment faults with animal transfer cabinets, biosafety autoclaves, leaky airtight doors, and excessive corrosive disinfectants affecting stainless steel laboratory equipment and biocontainment structures,” the report states.

Sen. Roger Marshall gives a briefing in Washington on April 16, 2023. (Zachary Stieber/The Epoch Times)

Both domestic and foreign bodies have for years raised concerns about biosafety at the WIV. A 2018 U.S. State Department cable, for instance, (pdf) reported that the then-newly opened biosafety level four lab at the facility had a “serious shortage” of trained technicians to safely operate the lab.

Researchers at the lab, before the pandemic, reported experimenting on mice, bats, and palm civets to find coronaviruses that were more capable of infecting humans, and sometimes experimented at sub-biosafety level four conditions. A more recent summary showed scientists conducted experiments that increased the function of a bat coronavirus. WIV’s refusal to reveal the full results of their experiments resulted in U.S. officials ending a subgrant after the pandemic started.

Research-related lab biosafety issues can unfold in a number of ways, while most infections acquired in laboratories due to lapses are never conclusively determined, researchers have said previously.

Chinese reports, communications, and notices were offered as support for the lab leak theory, including an attempt in November 2019 to procure an air incinerator at the lab. That suggested “some concern about the risk of an infectious aerosol escape,” researchers say in the new report. They also noted that WIV staffers underwent a remedial biosafety training course that same month.

Characteristics of SARS-CoV-2 suggest the virus was manmade, including the presence of a furin cleavage site at the same location that was proposed in a grant proposal by EcoHealth Alliance, the report concludes. EcoHealth funneled U.S. taxpayer money to scientists in Wuhan.

Read more here…

Tyler Durden
Wed, 04/19/2023 – 18:20

Biden Admin ‘Mishandling’ Hunter Biden Investigation Says IRS ‘Criminal Supervisory Agent’ In Charge Of Probe

Biden Admin ‘Mishandling’ Hunter Biden Investigation Says IRS ‘Criminal Supervisory Agent’ In Charge Of Probe

In what should come as a surprise to absolutely no one, an IRS supervisor has stepped forward to blow the whistle on the Biden administration for improperly handling the criminal investigation into the President’s son, Hunter Biden.

In a Tuesday letter sent to Congress by a “career Internal Revenue Service criminal supervisory special agent,’ the whistleblower claims to have information that would contradict sworn testimony by a “senior political appointee,” as well as a “failure to mitigate clear conflicts of interest in the ultimate disposition of the case,” according to the Wall Street Journal, citing the letter.

What’s more, the supervisor says he has evidence showing “preferential treatment and politics improperly infecting decisions and protocols that would normally be followed by career law enforcement professionals in similar circumstances if the subject were not politically connected.”

According to the report, the supervisor has been overseeing an “ongoing and sensitive investigation of a high-profile, controversial subject since early 2020,” which insiders say is Hunter Biden.

Hunter Biden is facing a criminal investigation related to his taxes and whether he made a false statement in connection with a gun purchase. When he said in December 2020 that his tax matters were under investigation, Hunter Biden said he was “confident that a professional and objective review of these matters will demonstrate that I handled my affairs legally and appropriately.”

Investigators have believed for months they had enough evidence to indict the younger Mr. Biden, the Journal and other news outlets have reported. Prosecutors have also weighed whether Hunter Biden’s well-documented drug addiction would present a defense against a potential criminal tax case, the Journal previously reported. He hasn’t been charged with any wrongdoing. -WSJ

Mark Lytle, a lawyer for the IRS agent, said in the Tuesday letter addressed to both Republican and Democratic leaders on the Senate and House Judiciary Committees, that his client is seeking whistleblower protections in exchange for his information.

“Despite serious risks of retaliation, my client is offering to provide you with information necessary to exercise your constitutional oversight function and wishes to make the disclosures in a nonpartisan manner to the leadership of the relevant committees on both sides of the political aisle,” reads the letter, signed by Lytle, who claims that the employee previously disclosed the information internally at the IRS and to the DOJ inspector general.

US Attorney David Weiss, the top federal prosecutor in Delaware under the Biden administration, has been leading the DOJ’s investigation of Hunter. According to AG Merrick Garland, Weiss has broad authority to pursue charges.

“He has been advised he is not to be denied anything he needs,” Garland told the Senate Judiciary Committee on March 1. “I have not heard anything from that office to suggest that they are not able to do everything the U.S. attorney wants to do.

Tyler Durden
Wed, 04/19/2023 – 18:00

White House Slams Brazil After Lula Accuses US Of ‘Encouraging’ War In Ukraine

White House Slams Brazil After Lula Accuses US Of ‘Encouraging’ War In Ukraine

Authored by Kyle Anzalone via The Libertarian Institute, 

The White House has accused Brazilian President Luiz Inacio Lula da Silva of repeating Russian and Chinese propaganda. While visiting China, Lula said that the US should stop “encouraging” the war in Ukraine and seek peace instead.

Speaking with reporters on Tuesday, the White House’s National Security Council’s Spokesperson, John Kirby, lashed out at Lula. “Brazil has substantively and rhetorically approached this issue by suggesting that the United States and Europe are somehow not interested in peace or that we share responsibility for the war,” Kirby said. “In this case, Brazil is parroting Russian and Chinese propaganda without at all looking at the facts.”

Via Reuters

The spokesman went on to call Lula’s statement “simply misguided” and “deeply problematic.”

Kirby’s statement comes as the Brazilian president scrutinized NATO’s role in the Ukraine war and sought to bring Moscow and Kiev to the negotiating table. “The United States needs to stop encouraging war and start talking about peace,” he said Saturday. “The European Union needs to start talking about peace so that we can convince Putin and Zelensky that peace is in the interest of everyone and that war is only interesting, for now, to the two of them.”

On Sunday, Lula further disputed the Western narrative about the war in Ukraine by arguing Kiev and Moscow both bear responsibility for the conflict. Both Russia and Ukraine “had decided to go to war,” he remarked. 

While visiting China last week, Lula proposed forming a coalition to pursue an end to the conflict in Ukraine. “I have a theory that I have already defended with Macron, with Olaf Scholz of Germany, and with Biden, and yesterday, we discussed at length with Xi Jinping.” He continued, “It is necessary to constitute a group of countries willing to find a way to make peace.”

The Brazilian Foreign Minister Mauro Vieira met with his Russian counterpart, Sergey Lavrov, on Monday. Vieira called for an immediate ceasefire in Ukraine and criticized Western sanctions for harming the global economy. 

Lavrov explained the Kremlin was happy with the role Brazil was willing to play in resolving the conflict. “As for the process in Ukraine, we are grateful to our Brazilian friends for their excellent understanding of this situation’s genesis.” He said, “We are grateful (to them) for striving to contribute to finding ways to settle it.”

Tyler Durden
Wed, 04/19/2023 – 17:40

MTG Bares Fang-Fangs, Throws House Meeting Into Chaos Over Swalwell ‘Sexual Relationship With A Chinese Spy’

MTG Bares Fang-Fangs, Throws House Meeting Into Chaos Over Swalwell ‘Sexual Relationship With A Chinese Spy’

All hell broke loose during a Homeland Security Committee meeting on Wednesday, when Rep. Marjorie Taylor Greene accused Rep. Eric Swalwell (D-CA) of ‘having a sexual relationship with a Chinese spy.’

“That was quite entertaining from someone that had a sexual relationship with a Chinese spy. And everyone knows it!” Greene said, kicking off her five minutes of allotted time.

New York Democrat Daniel Goldman immediately offered a motion to have her words “taken down,” which would strike them from the official hearing record and bar her from speaking further. The committee’s GOP majority voted to table the motion, and Ms Greene was permitted to resume speaking. –Independent

Swalwell allegedly banged an alleged Chinese spy who helped him fundraise in 2014. After an FBI briefing on the woman, the top Democrat said he cut all ties with the woman – Christine Fang, also known as Fang Fang.

The relationship caused then-House minority leader Kevin McCarthy (R-CA) to call for Swalwell’s removal from Congress – asking Fox News host Laura Ingraham; “Why is he still on the Intel Committee and why is he still a member of Congress?”

Mccarthy noted that the intel committee has access to information that no one else does.

“Remember what the intel committee gets. Information that no other members are able to see,” McCarthy said. “And remember what this member did. He was so preoccupied going after this president he was not protecting our country from bad actors.”

Tyler Durden
Wed, 04/19/2023 – 17:20

Victor Davis Hanson: Can We Do Anything About America’s Decline?

Victor Davis Hanson: Can We Do Anything About America’s Decline?

Authored by Victor Davis Hanson via AmGreatness.com,

The remedies are agreed upon, but the needed medicine is feared more than the disease. Because today, the government is the cause of our many crises…

Twenty-first-century America was on a trajectory of gradual decline—until it began to implode.

Was the accelerant the COVID-19 pandemic and unhinged lockdowns? Or was the catalyst the woke revolution fueled by the 2020 summer of exempted rioting, looting, arson, and violence? Or was it perhaps the deranged fixation on removing Donald Trump from the presidency and destroying the rule of law in the process? Or all that and more? 

Now with the election of Joe Biden, what had been a fast-tracked decline has accelerated at such an astonishing rate we can scarcely recognize our country.

Our largest cities are becoming uninhabitable—dilapidated, dangerous, and dysfunctional. The challenge is not just rampant crime, but the realization that if you, the citizen, are stabbed, shot, or beaten up on the street, the perpetrators may well be exempt from most punishments. And the victim either will be forgotten in his misery or, indeed, blamed for bringing such violence upon himself.

Urban schools are not places of instruction anymore. That fact is accepted by teachers’ unions, whose operative principle seems to be that the more hopeless the idea of educating urban youth is understood to be, the less burdensome the workload, and the greater their hazardous duty pay.

Urban chain stores are closing down on the principle that if police cannot or will not stop consumer violence and theft, then consumers there should not have any store to buy anything, anyway. If there is no store, how can it be looted or shop-lifted?

The only mystery remaining is how long these Democrat-controlled, racially charged, and corrupt municipalities can sustain their budgets and pension commitments with increasingly declining revenue. One can tax the well off, and perhaps even gouge them as California does. But one cannot insult and ridicule them in the process. Being highly taxed is one thing, being highly taxed while hated is quite another.

How eerie that medievalism – defecting, urinating, fornicating, injecting in the street – is relabeled “homelessness – as if the problem is merely a shortage of apartments or tent cities. Somehow cities developed the notion that it was crueler to be told not to pull down one’s pants and defecate in the street than it was for a pedestrian to step into infectious human excrement.

In the next five years, either cities will seek new governance to reduce taxes, break up municipal unions, mandate charter schools, restore police funding and manpower, recalibrate pensions, and prosecute criminals and corrupt officials—or Los Angeles, San Francisco, Seattle, Portland, Minneapolis, and a score of others will become Detroit.

One of the strangest phenomena amid our current debility are the millions of affluent leftists and liberals who have fled their unworkable, now unlivable blue-run, but naturally beautiful cities like San Francisco or Portland. They seem to lack an abstract recognition why they are leaving, or why and how their new chosen destinations are so different and therefore so inviting to them. Is their motto, “I am fleeing what I created, but I still hate those who created what I want”?

To have a “border problem,” one must have a border. The United States has no southern border.

Upwards of 7 million illegal entries since the Biden inauguration are proof enough of that tragedy. Mexico brags that 40 million have come into the United States. It urges them to vote Democratic. And it relies on still more illegal entries to ensure yearly increases in its current $60 billion in remittance income sent from its expatriates in the United States. The donors apparently grow fonder of Mexico—the more they are safely distant from it.

America could close the border tomorrow and actually “make Mexico pay for the wall” by simply slapping a 10 percent export tax on all remittances sent to Mexico. Or we could make it illegal to send money out of the country if one is receiving federal subsidies and aid. Or we could fine employers for hiring those who are here illegally. Or, as a deterrent to future illegal entries, we could immediately deport all who illegally entered and reside in the United States—if they came within the last five years, or if they have a criminal record, or if they are not working and are on public assistance.

The result would not just be a restoration of American sovereignty, and decline in spiraling social service costs. There would follow better relations with Latin America and Mexico. Both treat us with contempt as a hectoring weakling because, unlike themselves, we do not believe in our own physical space, our own borders, and our freedom to do as we please rather than what others tell us to do.

Abroad, our allies and neutrals are distancing themselves from America—France, Saudi Arabia, Egypt, India, Turkey, South Korea—on the Ukraine War, China, the dollar as the global currency, and our popular culture.

Why? Our increasingly former friends conclude it is now dangerous to ally openly with the United States and for a variety of reasons:

1) They see the once indomitable United States as weak—as a possible liability rather than an asset. After China’s balloon surveillances, the Afghanistan flight, the inability to achieve strategic victory after intervening in Iraq and Libya, the current embarrassing Pentagon leak, the Anchorage mini-summit, the woke obsessions in the U.S. military, and the inability to ensure its military is well-staffed, apolitical, and equipped with the world’s most plentiful and cutting-edge weaponry, allies assume that the United States will not necessarily win any intervention it undertakes but may well drag them down with it.

2) The United States may suddenly turn on an ally, demonize it, and refuse to meet with its leaders, as Biden gratuitously maligned Saudi Arabia and Israel.

3) America asks allies to join its cause of the day regardless of whether it is in those nations’ own interest. So South Korea, Japan, India, or Egypt do not believe boycotting Russian oil or openly selling Ukraine weapons is necessarily in their interests. 

4) Our woke revolution is so volatile, irrational, and unpredictable that allies never know when they will be accused of being homophobic, transphobic, racist, or sexist and treated accordingly—or whether the United States will be eternally crippled by internal woke dissension and civil unrest.

5) The allies do not believe the United States can keep secrets, especially after the latest leak. From the Dobbs draft leak and the Comey leak of a confidential conversation with President Trump to the Vindman-Ciaramella-Schiff impeachment psychodrama leaks to Chelsea Manning and Edward Snowden, leakers and “whistleblowers” feel there are few consequences to leaking classified information (unless it is embarrassing to leftist administrations), or indeed leaking to the media to overturn institutions and presidencies.

America must reform the entire Pentagon process of spending and appropriations. It must end woke and identity politics, ideological indoctrination, and return to a meritocracy. It should prohibit retiring generals and admirals from revolving into defense contractor boards and lobbyists. It should finally enforce the Uniform Code of Military Justice that prohibits active and retired high-ranking officers from publicly attacking their current commander-in-chief. It should charge leakers with felonies and prosecute perjury. Had the government done that with Andrew McCabe, John Brennan, James Comey, and James Clapper the accruing deterrence would have discouraged others with lower profiles. 

Biden is on schedule to run up a $2 trillion annual deficit, adhering to the Bush, Obama, and Trump legacy of unfettered spending. In Biden’s case, he insanely printed over $4 trillion at a time when labor participation rates were already in decline, COVID-suppressed demand was returning, and transportation and production interruptions were reducing supply. He raised taxes, increased regulations, cut projected increases in gas and oil production, and canceled energy projects. The result was the highest inflation in 40 years, near-record energy costs, soaring interest rates, the largest modern percentage of debt to GDP at 130 percent, the greatest debt in our history at $33 trillion, and stagnant GDP. All that and more prompt the current Chinese-led effort to dethrone the dollar as the world’s currency. 

The remedies are agreed upon, but the needed medicine is feared more than the disease. Our elected leaders know we must, but never even attempt to, cut spending, reduce the size of the federal government radically, simplify the tax code and reduce taxes, deregulate, recalibrate Medicare and Social Security, develop our mineral, gas, and oil resources, and require labor participation for able-bodied entitlement recipients.

Never have Americans spent more on K-12 and higher education and never have they received less in return. The education industry is woke and nonmeritocratic. Research is diverted, sidetracked, and polluted by ideological commissars, endangering the U.S. lead in science, math, engineering, and the professions. Even scientists have become deductive, starting out with a preconceived woke conclusion they feel will win influence, grants, and notoriety and then scrambling to warp evidence to fit it.

The solutions are straightforward. Tax university endowment income—and lots of superfluous and harmful programs will vanish. 

Stop federal student loan guarantees, and soaring tuition and room-and-board costs will decline to the annual rate of inflation once universities must guarantee their own student loans. 

Require universities that receive federal funds of any sort to honor existing laws from the Bill of Rights to the 1964 Civil Rights Act. That would end segregated dorms and graduations. The next time administrators at Stanford or San Francisco State either aid or ignore student efforts to shout down or disrupt speakers and suppress free expression, their institutions should quickly be fined by the U.S. government or have their federal funding yanked.

If SAT and ACT entrance tests are being abolished, then they could be rebooted as exit tests required for a bachelor’s degree analogous to a bar exam. With such minimum standards, we might ascertain what, if anything, students had learned upon graduation. College graduates should be able to choose between an academic master’s degree or the school of education credential to teach K-12. Most would flee the latter option. Right-to-teach laws and the end to mandatory teacher union dues, along with the end of tenure and its replacement by five-year contracts with required minimum standards of achievement, would all bring some accountability to what is now an entirely unaccountable profession.

Race is no longer an accurate barometer of either victimhood or legitimate grievance. If “affirmative” action were to continue, it should be based entirely on class considerations, not the current system of Elizabeth Warrenesque fakery or delusions that the elite children of Eric Holder, the Obamas, the Duchess of Sussex, or LeBron James are in some need of compensatory privilege for college admissions, appointments, or hiring.

Because America is now multiracial, with untold ethnic and racial agendas, and countless and contorted collective grievances, it is impossible to sort out victimizers and victims. Junk the entire illiberal and patently illegal system of racial discrimination, and there would be an organic return to merit, and with it, race would become incidental, not essential to American identities. After 1964, it seems Orwellian that liberal institutions could continue to assign dorms by race, segregate graduations, and impose racial requisites to participate in special programs.

America’s former strength—the most transparent, accurate, and trustworthy elections in the world—have descended into its greatest liability. In the space of a mere eight years, and especially in reaction to radical political changes made under the cover of the COVID lockdown, we have gone from 70 percent of the electorate in most states voting on election day to a mere 30 percent. Yet the ballot rejection rate somehow diminished, with the flood of non-Election-Day ballots that overwhelmed accustomed audit and verification.

Election night is a mere construct. It is mostly meaningless. Local, state, and federal election results are stalled and descend into days, weeks, and sometimes even months of bickering, counter charges of ballot tampering and fraud, ballot harvesting and curing, and a loss of confidence in the integrity of the final result. Debates mean little anymore, once a large portion of the electorate has already voted. No wonder deceased candidates can win. Gaffes are now determined by whether they occur before or after the majority of voters has cast their ballots. 

There should be a national uniform standard that allows states to set their ballot procedures—as long as they result in 70 percent of the electorate voting in person on election day. 

America is in a similar position to where it was in 1861, 1929, 1941, and 1968—only perhaps worse, given in all those cases, there was at least a president and Congress that identified and reacted to the crisis, whereas today our elected government is what caused the crisis.

Tyler Durden
Wed, 04/19/2023 – 16:24

Regional Banks Rip Higher As Inflation Spooks Bonds, Bitcoin, & Bullion

Regional Banks Rip Higher As Inflation Spooks Bonds, Bitcoin, & Bullion

Hotter-than-expected UK CPI spooked markets overnight but a lack of any really scary items in bank earnings (and NFLX big bounce back) offered BTFDers lots of opportunities today.

Small Caps outperformed (small financials heavy) as The Dow lagged (not getting green at all). Nasdaq and the S&P managed to squeeze back into the green. With about 15mins to go though, a major selling wave hit, dragging Nasdaq and S&P red and erasing most of the Small Caps gains…

TICK shows the sudden late-day wave of selling…

Source: Bloomberg

However, despite the bounce back in stocks, JPMorgan traders warned:

if the MegaCaps fail to change this quarter’s earnings profile, e.g., shifting expectations for EPS growth of -7% to perhaps flat/up, then we may be poised for a pullback in markets. Despite the moves over the last month, it is almost unanimous among client conversations that they remain bearish. What would change that view? A Fed pause/pivot and positive EPS growth are the two variables most commonly listed.

0DTE dominated the action once again. Early gains supported by a non-stop positive delta flow (dominated by call-buying not put-selling) but around 1140ET, put-buying started to accelerate (not call-selling) but stocks kept going higher (amid a classic short squeeze) which around 1345ET sparked a big cover in puts and sent the index to the highs of the day…

Source: SpotGamma

‘Most Shorted’ dumped at the open then ramped all the way back…

Source: Bloomberg

VIX plunged to fresh lows not seen since Nov 2021 (16.17 intraday lows)…

And VIX has slid lower as VIX calls have exploded higher relative to puts…

Source: Bloomberg

Regional banks shares surged to two-week highs despite reporting widespread declines in loan demand, ongoing credit tightening, and modestly rising mortgage delinquency rates.

But putting that in context, don’t get too excited…

The Big-4 US Banks also rallied recently (after earnings) and as we note below – rather oddly – found support at the level of market cap of the Big-4 Chinese bank stocks…

Source: Bloomberg

Debt Ceiling drama continues to ripple through market chatter as the T-Bill curve starts to misbehave, with a dramatic kink about a month out as anxiety over taxes (lower = sooner X-Date) get priced in…

In fact, as Bloomberg’s Cameron Crise noted this morning, that spread (which we track below using the generic 1m1m forward bill rate) isn’t completely accurate, because the dates of the May 16th (3.69%) and the June 13th (4.87%) bills don’t correspond precisely with those maturities.

But the sharp rise in the generic forward yield gives a pretty good indication of the kind of risk premium that’s been introduced into the bill curve –  it’s the highest since January 2, 2001, when the Fed funds rate was 6.5%.

Source: Bloomberg

Short-end Treasuries underperformed again with 2Y yields up 7bps (and 30Y yields unch) today…

Source: Bloomberg

2Y yields have just extended higher after breaking above 4.00% on Friday, now back at their highest since just after the SVB blowout…

Source: Bloomberg

Which sent the yield curve (2s10s) reeling back down to post-SVB inversion lows (still well off the record lows)…

Source: Bloomberg

May rate-hike odds topped 90% (for a 25bp hike) – new post-SVB highs…

Source: Bloomberg

The dollar ended higher against its fiat friends but all the gains were during the Asia and European sessions (with USD selling during the US session).,,

Source: Bloomberg

Crypto was puked overnight after the UK inflation data (amid considerable long liquidations) with Bitcoin plunging down towards $29,000 (hammered as it broke $30k)…

Source: Bloomberg

But Ethereum underperformed (after ripping higher relative to bitcoin since the ETH hard fork)…

Source: Bloomberg

Gold ended the day lower, but well off its lows as Gold futures found support and bounced back above $2,000…

Oil prices also ended lower, with WTI breaking back below $80 overnight after the inflation print. A choppy session though amid mixed data from EIA on inventories…

Finally, the fecal matter is starting to strike the rotating object in the corporate bond market as the yield spread between IG bonds and Fed Funds has collapsed to near record lows…

Source: Bloomberg

This, according to TD Securities, “heightened the risk of a correction in the US investment-grade corporate bond market.” And if IG bonds go, stocks won’t be standing around twiddling their thumbs. Although we do note that the pain in IG will likely be enough to force The Fed’s hand to pause or pivot sooner (but before you front-run it, The Fed won’t get there without the pain).

Tyler Durden
Wed, 04/19/2023 – 16:01

Biden Threatens To Veto GOP Bill Barring Transgender Athletes From Women’s Sports

Biden Threatens To Veto GOP Bill Barring Transgender Athletes From Women’s Sports

Authored by Jackson Richman via The Epoch Times (emphasis ours),

The White House announced on April 17 that President Joe Biden “strongly opposes” and would veto a bill that would prohibit taxpayer-funded institutions from allowing biological men to compete in women’s sports.

President Joe Biden speaks in Irvine, Calif., on Oct. 14, 2022. (John Fredricks/The Epoch Times)

The bill would “amend the Education Amendments of 1972 to provide that for purposes of determining compliance with [T]itle IX of such Act in athletics, sex shall be recognized based solely on a person’s reproductive biology and genetics at birth.”

In a Statement of Administration Policy, the White House claimed that the bill “would deny access to sports for many families by establishing an absolute ban on transgender students—even those as young as elementary schoolers—playing on a team consistent with their gender identity.” They called the proposed legislation “discriminatory.”

Politicians should not dictate a one-size-fits-all requirement that forces coaches to remove kids from their teams. At a time when transgender youth already face a nationwide mental health crisis, with half of transgender youth in a recent survey saying they have seriously considered suicide, a national law that further stigmatizes these children is completely unnecessary, hurts families and students, and would only put students at greater risk. Discrimination has no place in our nation’s schools or on our playing fields,” said the White House.

“Instead of addressing the pressing issues that families and students face today—such as raising teacher pay, keeping guns out of schools, addressing the mental health crisis our youth face, and helping students learn and recover academically from unprecedented disruptions—Congressional Republicans have instead chosen to prioritize policies that discriminate against children,” they continued.

However, the statement failed to address issues faced by female athletes due to the presence of males in competitions, which has historically never been allowed to happen due to the biological advantages males possess.

H.R. 734 is a direct challenge to a newly proposed Title IX rule by the Biden administration’s Department of Education (DOE) that seeks to make school policies illegal if they “categorically ban transgender students from participating on sports teams consistent with their gender identity just because of who they are.”

The rule is currently open to public comment.

Read more here…

Tyler Durden
Wed, 04/19/2023 – 15:45