Own a home in the suburbs? BRACE YOURSELF! thumbnail

Own a home in the suburbs? BRACE YOURSELF!

By John Eidson

Prior to the 2020 election, I posted a New York Post article on my local Nextdoor website, which has 39,000 subscribers within a 5-mile radius of my suburban Atlanta home. The article was about Biden’s plan for a federal takeover of local zoning laws, a move that would enable his administration to saturate suburban communities with new, high density public housing projects. Within an hour of my posting, two Nextdoor subscribers posted accusations that I was a racist trafficking in right-wing propaganda. I am not a racist, and the New York Post article was not propaganda. As recently reported by USA Today, Biden’s plan to torpedo the suburbs is already in motion, with funding from the $350 billion Covid rescue plan earmarked for construction of “affordable housing” smack in the middle of suburbia.

Please consider sharing the article below with every suburban homeowner you know.

What Biden’s “affordable housing” plan will do to suburbia

Joe Biden’s 2020 campaign website revealed plans for a federal takeover of local zoning laws. If enacted, the plan will force suburban jurisdictions with single-family homes and minimum lot sizes to permit construction of “affordable” high-density housing (apartments) on lots currently zoned for single-family living.

The professed purpose of the takeover is “to invest in our communities through housing by rebuilding the middle class and ensuring that this time everyone is included.” Translation: Inundate the suburbs with public housing projects.

The actual purpose of the takeover is to eviscerate Republican voting strength in the suburbs by relocating millions of government-dependent voters from inner city public housing projects to suburbia.

Some elected Democrats aren’t waiting for Biden to act. Last month, California governor Gavin Newsom signed a new law abolishing local ordinances that call for minimum lot sizes. The new law allows up to four residential units (apartments) to be built on lots that previously were zoned for single-family housing. It’s likely but a matter of time before the Democrat-run state increases the number of apartments allowed per lot by a substantial amount.

A federal takeover of local zoning laws would wreak havoc on nearly every middle class suburban neighborhood in America, including the one where I’ve lived for 44 years. With 800 homes on half-acre-plus lots zoned for single-family living, the heavily forested subdivision I live in has a beautiful lake surrounded by a walking trail, greenbelt areas that provide habitat for deer and other wildlife, eight lighted tennis courts, a 25-meter swimming pool, and a two-story clubhouse. One of the safest and most livable residential communities in suburban Atlanta, the subdivision is located in one of the highest rated school districts in Georgia. When houses in this area of Atlanta’s suburbs are put on the market, they sell quickly, often at top-dollar prices.

Here’s how a federal takeover of local zoning laws could affect the community where I live. Let’s say I decide to sell my house, and that federal rezoning allows up to eight apartments per half-acre lot. Let’s say I get two offers, one from a family that wants to live in the house, the other from a real estate speculator who wants to raze the house and build an 8-unit apartment building in its place. My lot would be far more valuable to the speculator, so he makes a much higher offer, and I accept. Once the apartment building is finished, my current neighbors would suddenly be living next door to eight family units instead of one.

Let’s say that in subsequent years, half of the other residents in my subdivision also sell their property to a real estate speculator. That means that at some point in the future, 400 of the 800 total lots would have an 8-unit apartment building, causing the subdivision’s population density to sharply increase, from 800 families to 3,600 families.

Due to nothing more than simple economics, the same thing would happen to surrounding subdivisions, causing the quality of living to plummet and traffic congestion to worsen significantly. The local jurisdiction would be forced to build new schools and larger water and sewer systems to accommodate higher density living.

More people would invariably result in more crime, and a once-safe residential area would become a more challenging place to raise a family. With Democrats committed to defunding the police and confiscating guns, suburban families would be virtually defenseless against street crime and home invasions.

“Too safe, too clean, too white, too Republican”

Initial planning for a federal takeover of local zoning laws began during the latter part of the presidency of Barack Obama, who viewed the suburbs as too safe, too clean, too white, too Republican. President Trump derailed those plans, but the plans are now poised to be resurrected under Biden’s “infrastructure” bill.

Now being negotiated in Congress, the bill allocates $213 billion for what he describes as “affordable housing.” In truth, the funding would be used to salt single-family neighborhoods in suburbia with Section 8 apartment buildings. If enacted into law, federal zoning mandates will turn peaceful suburban communities into the kind of urban war zones that exist in inner city areas of every Democrat-run city in America, no exceptions.

Biden’s “affordable housing” wrecking ball will lay waste to tens of thousands of single-family suburban neighborhoods presently inhabited by middle class homeowners of all races, ethnicities and political persuasions. More details of the planned takeover of local zoning laws are described in the New York Post article, “Biden’s ‘infrastructure’ plan wages war on the suburban dream.”

A half-century of Democrat rule has decimated the quality of life in urban America. Now that Democrats control the reins of government, they intend to do the same to the suburban neighborhood where you and your family live.

©John Edison. All rights reserved.

RELATED ARTICLE: Biden Nationalizes the DEI Bureaucracy

Biden Gives ANOTHER HALF A BILLION DOLLARS To Ukraine, $0 To Ohio thumbnail

Biden Gives ANOTHER HALF A BILLION DOLLARS To Ukraine, $0 To Ohio

By The Geller Report

That’s over 80 billion American taxpayer dollars to a corrupt money laundering dictatorship. NOTHING to the sick, the struggling  in toxic Ohio. Biden should stay in Ukraine and run for office there.

Biden Gives $500M In Aid To Ukraine, $0 To Ohio

By: Lucretia Hughes, February 22, 2023:

President Joe Biden has shown where his priorities lie after making a secret trip to war-torn Ukraine on Monday in support of Kyiv, and even announced a new $500 million aid package for the country, which includes shells for howitzers, anti-tank missiles, air surveillance radars and other aid.

That is rich considering the president has yet to visit East Palestine, Ohio after a train derailed earlier this month hauling toxic chemicals, which were then exploded into the air, water, and soil via a “controlled release,” creating a “Chernobyl” style catastrophe.

The ecological disaster has polluted water ways, including the Ohio River, and killed off a vast majority of fish and wildlife in the area. Nearby residents have even reported their pets dropping dead, and many in the area have had headaches and developed rashes.

Ohio Governor Mike DeWine requested federal aid to deal with the disaster last week, yet Biden denied it. I guess now we know why….he needed to send half a billion to Ukraine instead.

Today in Kyiv, President Biden announced a new delivery of critical equipment for Ukraine.

This package includes artillery ammunition, anti-armor systems, and air surveillance radars to help protect the Ukrainian people from aerial bombardments. pic.twitter.com/ThHG6I4uOx

— The White House (@WhiteHouse) February 20, 2023

When our border is in crisis, Joe Biden goes home to nap in Delaware.

When Ohio burns with toxic chemicals, Biden’s admin says everything is fine.

So on Presidents’ Day, I’m not surprised that Biden is ditching America for Ukraine. He ditched America’s interests since the… https://t.co/svkwSunZTJ

— Rep. Matt Gaetz (@RepMattGaetz) February 20, 2023

Keep reading.

AUTHOR

Pamela Geller

EDITORS NOTE: This Geller Report is republished with permission. ©All rights reserved.

If China is Helping Russia, What Do We Do? thumbnail

If China is Helping Russia, What Do We Do?

By Neland Nobel

Is China helping Russia in its invasion of Ukraine? If so, what does that mean for the conflict?

Secretary of State Blinken suggested that China is supplying Russia with “non-lethal” aid during a recent trip to Turkey.

This statement came just before a “secret” trip to Ukraine by President Biden, which was only a secret to Americans. Clearly, the Administration is upping the attention it is giving to the conflict.

This in turn comes from a steady increase in the type of weaponry the US will deliver to Ukraine and a commitment to support Ukrainian pensions.

China for its part said that it was not involved in the war and seeks a negotiated settlement. Chinese Foreign Ministry spokesman Wang Wenbin said further that “the U.S. is not qualified to give orders to China” and that “we will never accept U.S. criticism, even coercion and pressure on China-Russia relations.”

That sounds friendly, doesn’t it?

What is non-lethal aid? Does buying oil from Russia qualify? Financial help such as loans? What if they supplied intelligence and logistical support? How would we know? It seems that it would be very difficult to draw borders around the definition itself, since any aid, except medical support, helps a nation inflict casualties on its opponent and thus could be construed as lethal.

If Ukraine can call on its friends for money and arms, why can’t Russia? Why would Russia not do so?

You see, that is the reason this situation is becoming so dangerous and why a full-throated debate needs to be had in this country right now about our commitment to Ukraine. The chances of this war widening are growing by the day and the Democrat Party which always called to “give peace a chance” and always calls for negotiated peace agreements, is utterly not interested in peace talks.

Not only that, the current President and his family have had close personal financial ties to the country the rest of us are supposed to protect.

Meanwhile, the Republican Party is becoming split between those who want to enlarge the US military role and the MAGA wing of the party that thinks a major war in Ukraine violates  principles of good foreign policy, such as:

The war must be in the direct self-interest and for the safety and security of the US. The war must be winnable, there must be a clear definition of victory, and not be another failed nation-building project. There should be a declaration of war declared by Congress as prescribed by the Constitution and the case made clear to the American people. The war needs to be paid for by taxes and not add further to the already towering deficit which is spiraling completely out of control. As another European war, the US should expect that the bulk of the expense and casualties be suffered by our European allies, who are most directly threatened by Russian expansion. Do we have a coalition to fight this war? Germany and France, are you ready to stand up?

Advocates such as Nikki Haley and Lindsey Graham say the war is about “freedom” and discouraging aggression. The aggression part we get but the freedom part is difficult to grasp due to its vagueness. If the US should go to war with every country to does not permit “freedom”, we will be at war with most of the nations on earth. Besides we could use a lot more “freedom” at home before we go about exporting it by force abroad.

The other thing we are told is that aid should continue “as long as it takes.” Again, what does this phrase really mean?

There is the 1994 agreement to support Ukraine and its territorial integrity, for which they in return gave up their nuclear weapons. But if you read the memorandum, support is not really defined. That agreement was violated in 2014 by Russia with the incursion into Crimea and we did not go to war.  Article  4 suggests if Ukraine is invaded, we take the issue to the UN. With Russia having a veto as a permanent member, how was that supposed to work?  President Clinton was clearly a genius.

Read the agreement yourself.  Explain where we are committed to going to war.  Show me the provision to support Ukrainian pensions.

To be sure, we have given our “word”, but what does that mean?  Our word to take it to the UN?  Yet we hear we must step up the conflict or the world will not believe “our word.”

Yes, our words should mean something but since Viet Nam, the second Gulf War (WMD that were not found), and Afghanistan, our words have not meant that much.

These and other arguments need to be made and debated by the American people and the citizens of Europe.

Given our current political situation of low trust in government and the current administration, how likely will it be to unite the American people to fight a land war in Asia against two nuclear powers? How likely is it that Europe will be a united front for war?

If China were to “openly” aid Russia, it would change the entire context of the war in Ukraine in a very dangerous way.

What seems clear is that we are sliding into war with little debate and no definition of victory. It will put us into conflict with two gigantic countries, Russia and China, both of whom have nuclear weapons.

If the threat of nuclear annihilation can hold the conflict to a conventional war, the US will have to fight a long-distance conflict with two countries with immense geography and manpower. That means a land war with incredibly long logistical lines and a war that cannot be won unless we are willing to invade and bomb their territory to disrupt their logistical lines of support. It is not clear we have the industrial capacity, sea lift capacity, oil, or manpower to fight such as war as many of our basic industries have been hollowed out and transferred to China.

We are already running out of military stores with the aid we have already provided to Ukraine.

Thus, if we are “lucky”, this would be a land war in  Eurasia. We clearly would have to bring back the draft and mobilize the entire economy for war.

And what about the environment? No, we are not being snarky.  Democrats have been screaming that global warming is an existential threat that will end life on earth maybe by the end of this decade. Millions of our young people actually believe this. Clearly, there are not the resources to fight a major protracted land war and fight global warming. And the carbon emissions of a war of this scale would clearly doom us all if you extend the logic of their arguments. Just destroying Nordstream released immense amounts of methane.

How difficult will it be to get this younger generation ready to fight trench warfare on frozen ground? Most of them can’t qualify for military service and clearly, women will have to be drafted given the current laws. And if not, men can get out of the draft by saying they identify as women. Is the Administration ready to make the case to our young people for their sacrifice?

It is doubtful we are culturally, politically, spiritually, or economically ready for this war to expand beyond where it is today. And the history of war is that once started, they do expand. 

However, there is no reasonable guarantee that the war could be limited to conventional means. Is the country ready to be destroyed in a nuclear war, and to destroy our adversaries, over the eastern part of Ukraine, which historically has been Russian?

After fighting a two-front war in World War II, suffering immense casualties on Iwo Jima and Okinawa,  Truman decided to end the war by dropping the bomb. Why would not Russia and China reach similar conclusions? But when Truman made his decision, it was against an enemy that did not have the bomb or the means to deliver a counterstrike.

That clearly is not the case today, so the “best case” is a gigantic land war. Are you ready for that over who occupies Donbas?  How many people even know where that is?

Are our leaders thinking ahead about what would be entailed to take on two nuclear powers at one time, with the hope the war would only be conventional? If China has stepped into the war with aid to Russia as Blinken suggests, what are we prepared to do about it?

Is the Debt Ceiling Lunacy? thumbnail

Is the Debt Ceiling Lunacy?

By William Luther

The United States is bumping up against the debt ceiling once again. The Treasury department has begun taking extraordinary measures to ensure it can continue to service its debts on time. Secretary Yellen has said these measures should be sufficient until June. Some project they might work until August.

Many pundits act as if there is no good reason to have a debt ceiling. They say Congress implicitly approves an increase in debt when it passes revenue and spending bills. They think requiring Congress to explicitly raise the limit on issuing debt is unnecessary and—since it increases the odds of default—unnecessarily risky. Some go so far as to describe it as lunacy.

David Beckworth discussed the debt ceiling with Michael Strain on a recent episode of Macro Musings. Strain, who is the Director of Economic Policy Studies and the Arthur F. Burns Scholar in Political Economy at the American Enterprise Institute, provides a clear statement of the view described above:

[…] the gap between spending and revenues is implicitly determined by Congress. It doesn’t make any sense to require Congress to explicitly authorize these periodic debt ceiling increases.

The debt ceiling puts the President and the Executive Branch in a weird position of kind of picking which laws it will break and will not break. You know, it would be illegal for the Treasury department to issue additional debt if Congress didn’t raise the debt ceiling. It is also illegal for the Treasury department not to spend the money that it is required by law to spend. So, which of those two laws is Treasury going to break?

Given Congress’s implicit consent to raise the debt ceiling, Strain argues, there is no reason to require explicit consent.

I am sympathetic to Strain’s broader argument. We are a nation of laws. Our laws should be consistent. The government should not make promises and then fail to keep them. We should keep our promises and honor our debts.

That said, I don’t buy the implicit consent argument. And I don’t think the debt ceiling is lunacy. To the contrary, I think the debt ceiling might serve as a useful constraint.

On Implicit Consent

To be honest, I have never quite understood the implicit consent argument. If passing a spending bill that exceeds the revenues authorized by Congress implies consent for raising the debt ceiling, why is raising the debt ceiling so difficult? That it is so difficult suggests that a majority in the House or Senate has not already consented to a higher debt level.

We have known that majority voting systems can produce inconsistencies since the 18th century. One should not assume Congress prefers A to B just because they have indicated they prefer B to C and C to A. They might also prefer B to A. Therefore, it is inappropriate to assume that passing a spending bill that exceeds authorized revenues necessarily means Congress is willing to raise the debt ceiling. And, if Congress is not willing to raise the debt ceiling, it is not obvious why its decisions on revenues and spending should force it to change its decision on the debt ceiling. One might just as easily argue that its decision not to raise the debt ceiling should force it to change its decision on revenues or spending.

On Constraints

A binding constraint prevents one from doing what he or she would like to do. Relaxing such constraints, therefore, generally makes us better off. But it is naive to think all constraints are bad. Sometimes constraints make us better off.

Think about dieting. In principle, anyone can lose weight: just burn more calories than you take in. And, yet, many of us struggle to do so. You might say, “Just don’t eat the chips. It’s inconsistent with your goal of losing weight.” But, for some of us, having chips in the house is a temptation we can’t resist. If we are serious about losing weight, we adopt hard rules like “Never buy chips.”

Can one lose weight while still enjoying the occasional handful of wavy Lay’s? Sure. But, if we are likely to err in the eat-too-many direction (and likely to do so frequently), going cold turkey might be a better option.

The Potential for Strategic Interaction

Richard Thaler and H. M. Shefin describe self-control problems, like the dieting decision discussed above, as a problem of two selves. My future self wants to be thinner. My current self wants to eat chips. The hard constraint aligns the decisions of my current self with the goals of my future self.

The need for hard constraints is perhaps even more clear when we are dealing with truly separate selves: different people with different objectives. With separate selves, we must think seriously about strategic interactions: individuals make decisions today based, in part, on the decisions they expect others will make in the future. If there is scope for strategic interactions, hard constraints might make us all better off.

There is certainly scope for strategic interaction in Congress. Congress is not a single acting entity: the decisions of Congress are actually the decisions of a majority of its members. Moreover, the majority specifying how much to spend might not be the same as the majority specifying how much can be raised in taxes. And the decisions individual members of Congress make with respect to how much to tax and how much to spend depend, in part, on the decisions they expect others to make in the future. By treating Congress as a single acting entity, those advancing the implicit consent argument obscure the potential for strategic interactions.

A simple example serves to illustrate. Suppose a Senator supports higher spending and higher taxes. A spending bill comes up, which he would happily support if he knew taxes would be increased to cover the additional spending. His colleagues assure him that they will support a tax increase in the near future.

What‘s a budget-balancing Senator to do?

If he doesn’t support the spending bill today, he risks seeing that bill fail. That’s bad, in his view, because he thinks the additional spending is warranted.

If he supports the spending bill today, he faces the risk that his colleagues will renege when a tax bill comes up in the future. That’s bad, in his view, because he thinks the additional spending should be paid for with additional tax revenues.

The potential for parties to engage in ex-post negotiation makes it harder to reach an agreement ex-ante.

Enter the Debt Ceiling
The debt ceiling provides a limit on the potential for ex-post renegotiations. Our hypothetical budget-balancing Senator can vote for the spending bill today, knowing that in the future his colleagues will be forced to grapple with the imbalance. They must either raise taxes (as he’d prefer), forgo the additional spending (his second best policy outcome), or—if he’s in the minority—raise the debt ceiling.

Obviously, this is a simple example. But it illustrates an important point: sometimes constraints make us better off.

Conclusion

It’s tempting to think that all constraints are bad. In fact, we often impose constraints on ourselves and our counterparties to achieve better outcomes than would be possible in the absence of constraints.

Left unconstrained, many individuals will eat more calories than they should. That’s why they impose constraints on themselves! Likewise, unconstrained politicians are likely to authorize more borrowing than they should. The debt ceiling might provide a useful—if somewhat limited—constraint against excessive borrowing.

*****
This article was published by AIER, American Institute for Economic Research and is reproduced with permission.

Arizona Lawmakers Closer to Banning Local Renters tax thumbnail

Arizona Lawmakers Closer to Banning Local Renters tax

By Cameron Arcand

Legislation that would scrap the rent tax in municipalities has made its way out of the Arizona Senate.

Senate Bill 1184, is sponsored by Sen. Steve Kaiser, R-Phoenix. He described it as a way to save taxpayers money on top of already increasing rent costs in the region.

“When I think about my constituents waking up Jan. 1, 2024, starting a new year, we’re still gonna be in tough economic times in January, and this is the absolute soonest that we can get this tax relief to my constituents and everyone’s constituents in this chamber,” Kaiser said in the Senate Committee of the Whole meeting Thursday.

“Can you imagine starting that new year with one less bill you have to pay?”

Kaiser was alluding to the fact that if it were signed into law by Democratic Gov. Katie Hobbs, it would go into effect at the start of next year, according to the current version of the legislation.

“This targets only renters. Why are we targeting renters?” he later added.

The vote was along party lines, with some Democrats concerned that landlords would ultimately take advantage of the proposed relief. Some municipalities also expressed opposition, as it would result in less revenue for them.

“I am convinced that this tax break is going to help landlords and not renters. I believe that landlords are going to increase their rents,” Sen. Eva Burch, D-Mesa, said in the third reading of the bill.

Similar legislation is working its way through the House of Representatives.

*****
This article was published by The Center Square – Arizona and is reproduced with permission.

San Francisco Cries Uncle on Seven-Year Boycott of Red States thumbnail

San Francisco Cries Uncle on Seven-Year Boycott of Red States

By Family Research Council

When San Francisco decided to boycott the country’s red states, they were hoping it would have an economic impact. Trouble is, it did. Just not on conservatives. For seven years, the city has stubbornly clung to its travel bans and contracting blackouts for states with sane policies on life and gender — only to find out that the side paying the biggest price is their own.

In the latest sign that Republicans are winning the woke wars, city officials are quietly trying to walk back their petty payback of conservative states who’ve passed laws protecting the unborn, election integrity, girls’ sports, and privacy. At a city meeting February 13, leaders poured over a new report about the effects of the boycott policy, known as 12X, from the last several years. In a damning assessment, San Francisco’s City Administrator’s Office (CAO) said it was “not able to find concrete evidence suggesting 12X has influenced other states’ economies, or LGBTQ, reproductive, or voting rights.”

On the contrary, the authors wrote, “12X has created [an] additional administrative burden for City staff and vendors and unintended consequences for San Francisco citizens. … Few, if any other jurisdictions implement travel or contracting bans as expensive as the City’s.”

By refusing to outsource or partner with red states, San Francisco’s contracting costs went through the roof — up 10-20% just over the past few years. “It’s an ineffective policy that complicates the business of San Francisco government,” Supervisor Rafael Mandelmanm insisted, “and makes it very likely that we pay more than we should for goods and services.”

In a state where residents are already running for the exits, the last thing cities should be doing is giving people another excuse to leave. And a 20% surcharge for San Francisco’s intolerance is just one in a long line of absurdities. Since COVID, the moving vans have been in a perpetual, one-way convoy out of California, as 508,903 people called it quits on the state with sky-high costs, crime, taxes, and regulation.

This latest revelation, that even the city’s cultural retaliation is a failure, will only push more locals to the brink. A whopping 30 states are on San Francisco’s official blacklist now (up from eight in 2016), making it virtually impossible for the city to conduct national business. If the idea was to create a “compelling deterrent to states considering [conservative] policies,” COA admitted, it failed. In the game of chicken between deep-blue California and the rest of America, San Francisco is blinking. More than one official has said they’re moving to either strike the seven-year-old policy or, at the very least, repeal the most onerous parts of it.

That’s a major coup in California where the radical dogma is thicker than smog. But then, this isn’t the first time the forces of wokeness have been backed into an embarrassing corner. Ever since 2016, when North Carolina became ground zero in the bathroom wars, Democrats have been eating crow. One of the Left’s biggest lies — which they repeat to this day — is that passing pro-family laws will cost states billions of dollars in business. The opposite is almost always true.

For all of the Left’s hyperventilating, the aftermath of the H.B. 2 debate was nothing like the Chicken Littles predicted. North Carolina’s tourism numbers broke records; its population grew faster than any state in the union; and the state’s GDP was even higher than the national average. The booming economic climate even caught Forbes’s attention, who ranked the Tar Heels the second best state for doing business that year, a title it won the next three: 20172018, and 2019. Suddenly, the tough talk about retaliation from corporations and other organizations was being exposed for what it was: empty threats from big-mouthed bullies.

Bruce SpringsteenPearl JamNick Jonas, and Demi Lovato and other musicians did their typical chest-thumping, pulling out of tour stops in places like Raleigh over their insistence that men be allowed into girls’ restrooms — but at the end of the day, the financial damage was small enough to be considered a “rounding error.” Experts crunched the numbers and found that “concerts, conventions, and sports” don’t actually bring much to the table in terms of state revenue. “Let’s suppose you buy some tickets, and you pay $100 per ticket,” John Connaughton, a professor of economics, explained. “Well, $80, $90 of that ticket gets on the bus and leaves with the performer the next day. Or later that night.”

College sports promised more of the same when the fight over girls’ sports and kids’ gender transitions broke out a few years later. “The NCAA threatened states over anti-transgender bills,” the big print of The Washington Post read. “But the games went on.” All of the tough talk proved toothless when so many states passed conservative legislation that NCAA had nowhere left to go. Suddenly, tournaments that weren’t supposed to be awarded to places like Arkansas, Alabama, and Tennessee got the news that they would still be hosts after all.

“I guess the NCAA boycott of Florida is over after two weeks,” state Rep. Chris Latvala tweeted. Turns out, the tug of the Left may be strong, but so is the $730 million in revenue from the Southeastern Conference. Conservative influence as red states, Texas Governor Greg Abbott (R) pointed out, is bigger than we think. “Will they even be able to have sports events anymore in the United States [if they boycott us]? I don’t think so.”

And who could forget Hollywood, who, after Alabama and Georgia passed their strongest pro-life laws in 2019, vowed to take their filmmaking elsewhere? It was all very theatrical when Netflix, Disney, WarnerMedia, and Sony Pictures started shaking their fists at red states and making hollow threats about canceling productions. For most conservatives, it was a familiar scene. After all, the entertainment industry had been using the same script since North Carolina, when celebrities climbed on their moral high horses to browbeat voters who believe in biological gender.

They would be reevaluating their projects, Disney’s Bob Iger promised at the time. “We are watching it very carefully,” he reassured his allies. In the end, most CEOs’ posturing amounted to nothing. Even when California tried to dangle new tax breaks over producers — “Move your film to a state with a better appreciation for killing babies!” they seemed to say — the modest incentives were still offset by the state’s suffocating regulations and higher costs. Deep down, even Hollywood understood: they stand to punish themselves more than the locations they theatened to leave.

“It speaks to the unsustainability of the Left’s wokeness,” Family Research Council President Tony Perkins told The Washington Stand. “They’re painting themselves in a corner.”

He’s right. Ultimately, these stunts hurt the social extremists more than they’ll ever scare conservatives, especially in this refuse-to-be-intimidated era sponsored by governors Brian Kemp (R-Ga.) and Ron DeSantis (R-Fla.).

FRC Action Vice President Brent Keilen agreed. “The move by San Francisco is the latest example that, despite receiving a lot of attention from the media, boycotts of pro-family and pro-life states don’t have much of an impact.”

In today’s climate, even San Francisco’s giants of liberalism are coming to the realization: the biggest losers of the culture wars will always be the bullies.

AUTHOR

Suzanne Bowdey

Suzanne Bowdey serves as editorial director and senior writer at The Washington Stand.

EDITORS NOTE: This Washington Stand column is republished with permission. ©All rights reserved.


The Washington Stand is Family Research Council’s outlet for news and commentary from a biblical worldview. The Washington Stand is based in Washington, D.C. and is published by FRC, whose mission is to advance faith, family, and freedom in public policy and the culture from a biblical worldview. We invite you to stand with us by partnering with FRC.

French clothing manufacturer offers ‘anti-knife neck guards’ and other safeguards against beheading thumbnail

French clothing manufacturer offers ‘anti-knife neck guards’ and other safeguards against beheading

By Jihad Watch

Sign of the times.

“When you meet the unbelievers, strike the necks…” (Qur’an 47:4)

Celebrate diversity! It is France’s commitment to that alleged virtue that has given rise to this line of clothing. If your nation and civilization is being destroyed, you might as well make a profit off its destruction.

Get your anti-knife neck guards and other Islamophobic gear here.

AUTHOR

ROBERT SPENCER

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EDITORS NOTE: This Jihad Watch column is republished with permission. ©All rights reserved.

Are Electric Vehicle Charging Stations Really Worth Taxpayer Money? thumbnail

Are Electric Vehicle Charging Stations Really Worth Taxpayer Money?

By Steve Goreham

Charging at home is a favored feature of electric vehicles (EVs). But public charging stations are needed for long trips and to maximize market penetration of EVs. However, it’s unlikely that charging fees can cover the capital and operating costs of public chargers or make money for investors.

According to Kelly Blue Book, Americans purchased more than 800,000 new electric cars last year, or about 5.8 percent of all new cars sold. EV sales grew by 65 percent over 2022. The Inflation Reduction Act of 2022 extended and expanded tax credits for EV purchases and for residential and commercial charging stations. Some predict that electric vehicles will become more than half of the vehicles on the road by 2050.

Last week, Travel Centers of America, or TA, announced that it would open 1,000 EV charging stations in 200 locations over the next five years. TA’s announcement follows similar announcements from convenience store chains Pilot and Love’s. These new chargers will add to the more than 160,000 currently in operation in the US.

Most people charge their electric vehicles at home. Home charging accounts for about 80 percent of charging in the US and Europe.

Home chargers are 120 volt, 3.3 or 7.4 kilowatt (kW), AC chargers that can charge an electric car up to 100 kilometers (62 miles) of range in about three to seven hours. Today, about 80 percent of US public chargers are 240 volt, 10 or 22 kW AC chargers that can charge an EV to 100 kilometers in one to three hours. Experience shows that these existing AC public chargers are too slow, so most new public chargers being installed are DC fast chargers. DC fast chargers of 50 kW or 120 kW can charge an EV in 30 minutes or less.

But the business case for public charging service is poor. Because most charging is done at home, public charger utilization rates are low. Fast DC chargers needed for public charge points are expensive. Most studies find that charging stations can’t pay for themselves over a 10-year period.

Let’s compare a traditional gas pump to a fast DC charger. A gas station fuel pump costs about $20,000 and can serve a customer in less than six minutes. A 50-kilowatt fast DC charger costs about $100,000 and can serve an EV customer in about 30 minutes. The pump can serve five times as many customers for one-fifth of the capital cost of a high-speed charger.

Electrify America (EA) is the second largest charging company in the US behind Tesla. Last October, EA announced that it had 3,500 charging stations at the end of 2021, which provided 1.45 million customer charging sessions during the year. This means that, on average, each EA charging station supported just over one charging session per day. While this will increase with more EVs on the road, EA charging stations will never recover their investment costs with such low levels of charging.

Tesla sold more than 60 percent of new electric cars in the US in 2022. Tesla provides a network of almost 17,000 chargers in the US and more than 40,000 worldwide. The firm’s chargers are 90 kW up to 250 kW fast DC chargers. But Tesla’s charger network is paid for by revenues from car sales.

Charging is problematic for residents of multi-unit housing. About 32 percent of US residents and 46 percent of Europeans have apartments. Will apartment building owners install chargers that are money losers?

Most charging stations today reside at unmanned locations. Many drivers won’t want to wait a half hour to charge a vehicle in a remote parking lot location after dark. Remote locations also encourage thieves to cut off charging cables to steal the copper, even while a vehicle is being charged. Public chargers may need to be at manned sites, further increasing costs.

The cost of electricity is a key factor in the price of electric mobility. As part of the world energy crisis, Europe’s electricity cost rose by a factor of six in the last 18 months. Running an EV is now more expensive per mile than a petrol car in many locations in Europe.

It’s unlikely that commercial charging of electric vehicles will become a sustainable free-market business. Look for charging stations to eventually be owned by electric utilities, paid for by higher electricity prices and government subsidies.

*****
This article was published by CFACT and is reproduced with permission.

Getting Serious About Responsible Defense Spending thumbnail

Getting Serious About Responsible Defense Spending

By Kevin Roberts

Another Congress, another debt limit showdown. It might seem there is nothing new under the sun.

But something is different this time: In my conversations with members of Congress in recent weeks, conservatives repeatedly mentioned their willingness to tackle the thorny challenge of military spending reforms, in addition to the out-of-control non-defense spending conservatives typically confront. This boldness is a refreshing change from the Washington status quo.

For too long, Republicans considered it a victory to increase defense and non-defense spending by equal dollar amounts, without cutting a dime from the deficit. Congress accepted the D.C. canard that a bigger budget alone equals a stronger military. But now, facing down a record debt to the tune of $242,000 per household, conservatives are ready to tackle an entrenched problem and confront the political establishment, unaccountable federal bureaucrats, and well-connected defense contractors all at once in order to keep the nation both solvent and secure.

Our national debt stands at over 120 percent of GDP, the largest sum since World War II. Most of this debt is the result of a bloated federal bureaucracy, of domestic programs that Congress allows to run at a deficit, and of bipartisan spending sprees like the “emergency” Covid-19 packages. Republicans owe it to their constituents to use the debt limit as an opportunity to reduce spending and shrink the administrative state.

Most Republicans generally give lip service to the idea of cutting spending, but blink when it comes down to the wire. In the end, Democrats hold defense spending hostage from Republican hawks and Washington plays along, with bigger defense and discretionary spending as the deficit balloons. As lawmakers face an impending debt limit deadline yet again, they can’t behave as they’ve done in the past. Defense and non-defense spending must both be on the table.

Today’s Pentagon is approaching a 13-figure annual budget. Congress needs to put away its kid gloves and put the Department of Defense and other agencies alike under the knife to excise wasteful spending. It is a top priority to save our nation, particularly the next generation, from the yoke of debt and an unaccountable, over-funded federal bureaucracy.

Of course, paramount to the goal of fiscal sanity is the goal of a strong national defense. A robust military deters any would-be attackers and protects American interests around the globe. On our military readiness, however, the sirens are blaring: Heritage’s 2023 Index of U.S. Military Strength rated the state of our nation’s military as “weak” for the first time. Our military is too outdated to fully protect American interests at home and abroad. We need a stronger military overall, and especially a force able to deter the rising threat of communist China and 21st-century threats.

The task at hand today is to achieve both goals: restore fiscal sanity and ensure our military protects our citizens from today’s threats. Republicans must defund unnecessary programs and unneeded bureaucrats, while also ensuring our military is ready to confront the nation’s threats. It will not be easy, but with enough political will, it can be done.

To get into the right mindset, Congress should refamiliarize itself with Oakland A’s general manager Billy Beane, who was handed a team in 2002 with the third-lowest payroll in the MLB, one-third as much as the Yankees. By defying the prevailing practices of MLB old-timers, who valued the looks of their players ahead of on-base percentage, Beane took a more efficient, data-driven approach and squeezed the most out of every dollar. He took his band of misfits to a 103-59 season and a postseason berth—the same number of wins as the well-funded Yankees.

Congress needs to take a Moneyball approach to our national defense, a much larger contest with life and death consequences if we get it wrong. Instead of engaging in a debate over topline spending numbers and throwing money at old programs and systems, Congress should insist that every dollar is used to advance military lethality and readiness while saving taxpayers as much as possible.

My colleagues at the Heritage Foundation are committed to helping our lawmakers find more savings. In February, we’ll convene top experts in national security and defense to scrutinize the Pentagon’s budget, line by line. Already, we’ve identified some top ways in which Congress can help our military give the taxpayer a square deal. Here’s a sample:

First, Congress and the Pentagon should ruthlessly target wokeness and waste. In the middle of a recruiting crisis, Secretary Lloyd Austin and the Pentagon prioritized onerous vaccine requirements and anti-American “diversity, equity, and inclusion” programs. And at a time when the military is increasingly weak, appropriators have jammed about $1.4 billion in non-defense research into the defense budget. Appropriators should immediately slash any program that doesn’t contribute to improved warfighting capabilities.

Second, Congress should go after inefficient and outdated weapons systems and other programs. Individual members of Congress have often insisted on funding programs that serve the wants of their home districts or of defense contractors, putting special interests ahead of overall readiness. For instance, the Army asked to terminate the CH-47 Chinook helicopter for three years running, but Congress keeps adding money back in.

The Pentagon has been telling Congress it has too many bases and facilities for years now. In 2016 the Pentagon estimated they were carrying 22 percent excess infrastructure: unnecessary bases, buildings, and facilities. But since 2005, Congress has been unwilling to consider closing any infrastructure, despite estimated savings of over $2 billion a year. A frustrated Pentagon has now given up on asking for authorization to consider a closure process. It is time for Congress to authorize a new round of Base Realignment and Closure (BRAC), which overcomes parochial interests to close down unneeded bases in a fair and strategic manner, and to apply the same philosophy to the rest of the budget, regardless of how much defense contractors protest.

Third, the United States must insist that its allies do their part, particularly in Europe. Our friends across the Atlantic have for decades enjoyed the protection of the American military and were content to spend less than the NATO goal of 2 percent of their GDP on defense while Uncle Sam protected their backyard, even while countries such as Germany enjoyed budget surpluses. It is time for them to end their free riding, pick up the tab, and meet their NATO obligations. We should use our considerable leverage to insist on it. This doesn’t mean abandoning Europe—far from it. But pushing our allies to take a greater role in defending their own continent will allow the United States to repurpose funds, troops, and programs to counter the larger global threat of communist China.

There are far more programs and ways for Congress to right-size the Pentagon budget, but the first step is to stop running the same old Swamp playbook and start playing Moneyball. Congress has the chance to show it can walk and chew gum at the same time, keeping our homeland safe while prioritizing Americans first, if it is willing to make the hard decisions necessary to do so.

Conservatives on the Hill must step up and face the challenge head-on, or face the righteous fury of the American people if they vote for business as usual. I am optimistic they’ll make the right choice.

*****
This article was published by The American Conservative and is reproduced with permission.

‘Lucrative Business’: The Child Sex Change Industry Is Exploding In The US thumbnail

‘Lucrative Business’: The Child Sex Change Industry Is Exploding In The US

By The Daily Caller

  • The child sex change industry is massive and growing, and children undergoing cross-sex treatments can bring a massive cash influx to hospitals, pharmaceutical companies and others in the medical industry. 
  • From 2017-2019 at least 56 genital surgeries and 776 mastectomies were performed on minors as part of the gender transition process in the U.S., but even this figure is outdated and vastly underestimates the scope of the child sex change industry by excluding certain patients. 
  • “There is no question that financial rewards play a role in the adoption of gender affirming care. Hospitals and physicians generate substantial payments from insurers or self pay patients when children enter into the transition protocols,” Dr. Stanley Goldfarb, board chair of Do No Harm and former Associate Dean for Curriculum at the University of Pennsylvania School of Medicine, told the Daily Caller News Foundation.

Child sex changes procedures, including puberty blockers, cross-sex hormones and surgeries, have become a rapidly-growing, multi-million-dollar industry, according to a Daily Caller News Foundation investigation.

While there is no comprehensive data set tracking the number of children undergoing cross-sex procedures, and the cost of these procedures varies widely, existing data and experts in the field have shed light on a highly profitable and quickly growing market offering largely irreversible procedures to minors. Mastectomies and breast augmentations cost about $10,000, cross-sex genital surgeries cost about $25,000, plus several thousand dollars for anesthesia and a hospital stay, and facial and other cross-sex surgeries range from $2,000 to $15,000, according to the Philadelphia Transgender Surgery Center’s (PTSC) 2019 price list; those prices have gone up in recent years, an employee told the DCNF, but the clinic has not released an updated list and wouldn’t disclose its new prices without a patient consultation.

“There is no question that financial rewards play a role in the adoption of gender affirming care,” Dr. Stanley Goldfarb, board chair of Do No Harm and former Associate Dean for Curriculum at the University of Pennsylvania School of Medicine, told the DCNF. “Hospitals and physicians generate substantial payments from insurers or self-pay patients when children enter into the transition protocols.”

“No matter what other motives come into play, there is no way that the surgical and medical activities would be embraced by various gender clinics and hospitals if they were financially harmed by these clinical activities,” Goldfarb added. (RELATED: ‘Groomed And Preyed Upon’: Young Woman Was Pressured Into Mastectomy, Testosterone As A Child — Now She Regrets It)

About 300,000 children in the U.S. identify as transgender, according to the University of California Los Angeles Williams Institute, though not everyone who adopts a transgender identity seeks a medical transition. While many of these children undergo surgical procedures, particularly mastectomies, a larger portion receive puberty blockers and/or hormones, which provides a continuous stream of revenue to pharmaceutical companies and medical providers.

There are more than 100 gender clinics in the U.S. that treat children, according to Reuters, and each of these clinics would need to see at least 100 patients annually to be successful but are likely seeing as many as 300 a year, Goldfarb told the DCNF. By that estimate, there are likely at least 10,000 to 30,000 children undergoing some form of gender transition in the U.S. each year.

The overall cross-sex surgery market was valued at $1.9 billion in 2019 and is projected to rise to $5 billion by 2023, according to Grand View Research, which attributed rising market value to the increased prevalence of transgender identification and improved insurance coverage for the procedures. The rise in transgender identification has been heavily concentrated among the youth population.

The medical industry is acting on these financial incentives: Johns Hopkins Medicine has been lobbying the Maryland legislature to expand Medicaid coverage of transgender procedures to include a host of interventions typically considered cosmetic, such as Adam’s apple reduction, facial contouring and laser hair removal, according to a DCNF investigation. The American Society of Plastic Surgeons, a professional association, has been fighting against state legislation restricting child sex change procedures and advocating for expanded coverage of trans procedures since at least 2017.

A woman identified as Dr. Shayne Taylor of the Vanderbilt University Medical Center (VUMC) reportedly touted the profitability of gender surgeries during a lecture in 2018, the same year VUMC opened its gender clinic, according to the Daily Wire. VUMC offered hormones and double-mastectomies to minors who identified as transgender to help them present as the opposite sex until it paused the procedures in late 2022 following pressure from the state legislature.

“This is only including top surgery, this isn’t including any bottom surgery, and it’s a lot of money. These surgeries make a lot of money,” Taylor said. “So a female to male chest reconstruction can bring in $40,000. A patient who just got routine hormones treatment who I’m only seeing a few times a year can bring in several thousand dollars without requiring a lot of visits and labs. It actually makes money for the hospital.”

From 2017-2019 at least 56 genital surgeries and 776 mastectomies were performed on minors in the U.S., though this data only includes minors who had formal gender dysphoria diagnoses and had their surgeries covered by insurance, according to insurance data analyzed by health technology company Komodo Health Inc and originally reported by Reuters. The data set doesn’t account for the likely much higher numbers of children undergoing such surgeries in more recent years amid skyrocketing rates of youth transgender identification.

“There’s money to be made, but not from the single cost of a procedure,” Mary Hasson, director of the Person and Identity Project at the Ethics and Public Policy Institute, told the DCNF. “The gender docs are creating a steady money stream by converting adolescents with healthy bodies into ‘consumers’ of drastic medical procedures that turn them into lifelong medical patients, dependent on additional drugs, surgery, and psychological help to live a stable life.”

“Unfortunately, as we know from the suicide studies, the promised long-term happy result is illusory,” Hasson said.

Based on PTSC’s estimates, the 259 minors annually undergoing top surgery prior to 2020 likely brought in about $2.6 million — and this only includes minors whose surgeries were covered by insurance and who had formal gender dysphoria diagnoses. Genital surgeries are rare for children, but if about 19 minors had those procedures annually prior to 2020, as Komodo’s data suggests, that would bring in $570,000 per year for child genital surgeries.

A sex change patient who begins treatments during puberty incurs massive costs immediately; the puberty blocker Lupron-Depot-PED costs about $2,000 a month, according to Drugs.com, so a youth patient who takes the drug from age 14 to 16 would spend $48,000 over two years of treatment. Cross-sex hormones, the next step of medical transition, are far less expensive than blockers. They’re typically offered at age 16, according to England’s National Health Service, and though some may eventually stop taking them, patients must continue treatments for the duration of their lives to continue seeing its full effects, according to Duke Health.

Hormones cost about $10 per month, according to Lurie Children’s Hospital; a patient who starts hormones at 16 and continues until age 80, would spend about $7,600 on the drugs over the course of a lifetime. The cost of routine medical visits to monitor a hormone patient would presumably be much higher; Taylor estimated hospitals rake in “thousands” each year from one patient taking hormones.

Advocates for child gender transitions argue that the procedures are medically necessary to address the mental health and suicide risks among transgender people and to allow them to live as their authentic selves. Several DCNF investigations and reviews have disputed claims that medical gender transitions reduce mental health problems and suicide risks.

“While transgender activists have tried to pass off their cause as a civil rights movement, it is more accurate to describe it as a profit-making machine,” Terry Schilling, president of American Principles Project, a group that opposes child gender transitions, told the DCNF. “‘Gender transitions’ are a lucrative business, enriching Big Pharma as well as numerous hospitals and clinics. And as the number of people claiming a transgender identity has exploded, so has the industry catering to their desires.”

AUTHOR

LAUREL DUGGAN

Social issues and culture reporter.

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.


All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

CBO: Interest on Debt to Triple by 2033, Surpass Defense Spending by 2028 thumbnail

CBO: Interest on Debt to Triple by 2033, Surpass Defense Spending by 2028

By Family Research Council

Here’s one ballooning problem the military can’t simply knock out of the sky: net interest payments on the U.S. government’s debt are projected to triple over the next 10 years, totaling 300% of 2022 outlays in 2033, according to a new report published this week by the Congressional Budget Office (CBO).

According to CBO projections, interest on the debt (which claimed 7.5% of federal government spending in 2022) will rise sharply to 10.3% of spending in 2023 and then continue rising steadily, surpassing defense spending (11.9% of spending in 2022) in 2028 and reaching 14.4% of spending by 2033.

This bad news on rising interest costs comes amid another, short-term crisis regarding the debt ceiling. The U.S. government hit its statutory debt limit of $31.4 trillion on January 19 of this year. Treasury Secretary Janet Yellen has resorted to “extraordinary measures” to “borrow additional funds without breaching the debt ceiling,” the CBO explained, but they estimate that “the Treasury would exhaust those measures and run out of cash sometime between July and September of this year” unless Congress acts to raise the debt ceiling. For every penny Congress raises the debt ceiling, it will only aggravate the interest problem more.

The increase in net interest payments has two primary causes: interest rates and deficit spending.

First, the Federal Reserve’s interest rate hikes to fight inflation contribute to higher interest rates the U.S. must pay on preexisting debt, with a small lag in time. The Federal Reserve has raised the federal funds interest rate eight times in the past 12 months, from a targetrange between 0.25%-0.00% in January 2022 to a range between 4.50%-4.25% today.

“Net outlays for interest, which rose by 35 percent last year, are projected to increase by 35 percent again this year,” said the CBO. “The projected increase in 2023 occurs primarily because the average interest rate that the Treasury pays on its debt has risen sharply this year and is expected to rise further as maturing securities are refinanced at rates that are higher than those that prevailed when they were initially issued. For example, the interest rate on 10-year Treasury notes averaged 1.3 percent in 2021 and 2.4 percent in 2022; that rate averages 3.8 percent in 2023 in CBO’s current economic forecast.”

Second, continued deficit spending increases the volume of debt on which the U.S. government must pay interest. (To clarify, “debt” is the total, cumulative amount owed, while “deficit” is the difference between expenditures and revenues over a given period of time.) “Debt held by the public (in nominal terms) is on track to increase by 6 percent from 2022 to 2023,” said the CBO, which “projects a federal budget deficit of $1.4 trillion for 2023.”

In fact, the CBO projects the federal government will run an annual deficit of $1.4 trillion-$2.8 trillion (amounting to 5.4%-7.3% of estimated Gross Domestic Product [GDP]) for every year, 2023-2033. In their February report, the CBO added 20% to their projected deficit over the next 10 years, due to changing economic and legislative factors.

Assuming that “current laws governing taxes and spending generally remained unchanged,” CBO projects that “federal debt held by the public is projected to increase in each year of the projection period and to reach 118 percent of GDP in 2033 — higher than it has ever been.”

Rising interest payments will only exacerbate the U.S. government’s budget shortfalls. According to the CBO project, the percentage of the budget devoted to paying interest will nearly double from 2022-2033. Other slices of the pie must get smaller as a result. But, as Figure 1 shows, the decreases won’t come from mandatory spending (it’s mandatory, after all), which is already a majority of federal spending. Instead, the increasing interest payments mean a smaller slice of the pie is left over for discretionary spending — including a vital subset, defense spending. The CBO estimates that defense spending will decline from 13.2% of federal expenditures in 2024 to 11.1% in 2033 (with nondefense spending declining proportionally), as interest payments increase from 11.5% to 14.4% over the same period.

VIEW: Figure 1: CBO Projection – Spending by Category (in Pct.)

Of course, one often overlooked feature of the spending “pie” analogy is that the pie can grow in size — through either expanding revenues or assuming additional debt. As Figure 2 makes clear, the CBO doesn’t predict that discretionary spending — either for defense or nondefense purposes will shrink in absolute terms. Rather, it will grow more slowly than interest payments, mandatory spending (mostly Social Security, Medicaid, and Medicare), and by implication, the whole economy as well.

VIEW: Figure 2: CBO Projection – Spending by Category (in $Billions)

One major asterisk to CBO estimates is their assumption that “current laws governing taxes and spending generally remained unchanged.” There’s nothing wrong with projecting from that assumption — it’s their job at the Congressional Budget Office, actually. But a lot can change over 10 years. For one thing, “forecasting interest rates is particularly challenging,” the CBO admitted in 2020. Three presidential elections and two midterm elections give plenty of time for political coalitions to change “current laws.”

It’s not implausible that America might experience a recession, or even two, over a 10-year period; this, too, could radically alter taxation and spending priorities. Foreign events may also interject themselves; a foreign conflict with, say, China could substantially increase military spending. All these plausible variables could dramatically alter the shape of actual government spending, 10 years down the road.

What the CBO projection can tell us is that our current policies are needlessly backing us into a corner. Just paying the interest on our current national debt will cost more and more, and the government continues to overspend its revenues to the tune of trillions (with a “T”) per year. Meanwhile, the CBO predicts mandatory spending will increase by 60% from 2023 to 2033, primarily due to the population aging into Social Security benefits. The combined pressure of these factors will reduce the federal government’s freedom to spend discretionary funds (on everything else), trimming them from 26.5% of total spending in 2022 (and somehow 29.1% in 2024) to 23.9% of total spending in 2033.

If the CBO’s projection is accurate, when Congress gets around to allocating funds in 2033, they will have less than a quarter to work with out of every dollar that they spend. That quarter must cover all discretionary spending, including defense spending.

Net interest payments are far from the most expensive category of federal spending, as Figures 1 and 2 illustrate, so why do they matter so much? One reason is that they perpetuate the deficit spiral. The CBO called the “net interest outlays increase … a major contributor to the growth of total deficits.” These deficits add to the debt, which then increases the interest the U.S. government must pay even further.

Another reason is the irresponsible folly it implies. The U.S. government is in the situation of a person who has gotten up to their eyeballs in credit card debt. Yet the government not only continues to finance purchases with credit, but only ever pays the interest that comes due, and never pays down the ever-growing principal. Sooner or later, those chickens will come home to roost, and, when they do, everything will smell like chicken houses.

A third reason to worry about the growing interest payments is that it complicates the math for any plan to reach a balanced budget. “Opportunities to trim costs are limited, with only about one-third of federal spending labeled as discretionary,” wrote analysts at The Wall Street Journal. Those opportunities shrink further as discretionary spending is crowded out by interest payments.

A fourth, and related, reason is it leaves us less prepared for any crisis. Apart from possible military crises, the CBO forecasted last month that Social Security will become insolvent in 2033, 10 years away. Analysists have recognized for decades that the entitlements time bomb is most likely to kill us when it finally detonates, but America lacks the political will to address that issue yet.

Still, the U.S. government can be better or worse prepared when that time comes. Our best escape route is to free up some funds to deal with the ultimate insolvency of Social Security. Instead, we continue to spend money we don’t have. It’s as if we are trapped in a corral with a deadly bull lying fast asleep. We could choose to flee before the bull awakes. Yet America has not only remained in the ring, but we have backed ourselves into a corner, limiting our chances to dodge its gory horns. And, on top of that, we occupy ourselves by stringing barbed wire across our best escape route. When the bull finally awakes, we will deserve all the consequences of our folly.

If America’s fiscal situation is dangerous, even desperate, why haven’t we confronted our fiscal irresponsibility yet? One reason is that historically depressed interest rates kept legislators from feeling the consequences of their actions. For 11 out 14 years from 2008-2020, the federal funds effective rate lay under 1% (and most of that time it was under 0.2%). In 2015, the interest rate on a three-month Treasury bill, which averaged almost 5% in 2007, had dropped to 0.03%. This created an era of cheap debt, where Congress could overspend with hardly any consequences. Now, as interest rates rise, as we always knew they would, the U.S. government not only has to shoulder an interest burden to which it is unaccustomed, but it has also lost the habit — or even the façade — of fiscal restraint.

According to the latest CBO report, 2028 represents a shocking threshold: the year when the U.S. government will have to spend more paying the interest on our $31.4 trillion of debt than it will spend on national defense. Whether we reach this landmark a few years early or late, the point is that our profligate legislature is spending our country into a pointless crisis.

Just as no one wants to be the team down by three touchdowns at the two-minute warning, no country should willingly bury itself under so much debt that it’s mathematically impossible to escape. Alas, the only similarity between wisdom and Washington is that both begin with “W.”

AUTHOR

Joshua Arnold

Joshua Arnold is a staff writer at The Washington Stand.

EDITORS NOTE: This Washington Stand column is republished with permission. ©All rights reserved.


The Washington Stand is Family Research Council’s outlet for news and commentary from a biblical worldview. The Washington Stand is based in Washington, D.C. and is published by FRC, whose mission is to advance faith, family, and freedom in public policy and the culture from a biblical worldview. We invite you to stand with us by partnering with FRC.

Time to Ditch Davos Autocrats, Woke Companies & their Insane Agenda thumbnail

Time to Ditch Davos Autocrats, Woke Companies & their Insane Agenda

By Karen Schoen

Over the years, what have we constantly heard, from the lying left… BOYCOTTS DON’T WORK.

Fact:  What action made the largest impression during the Civil Rights movement? The Boycott of the Montgomery Busses.

“The Montgomery Bus Boycott was a civil rights protest during which African Americans refused to ride city buses in Montgomery, Alabama, to protest segregated seating. The boycott took place from December 5, 1955, to December 20, 1956, and is regarded as the first large-scale U.S. demonstration against segregation.”

The Globalists are only interested in Money, Power, and Control. Any policy that is a threat to their bottom line is devastating. So why are we constantly told Boycotts don’t work? Because the left is so afraid of losing money, and they know we can put them out of business. Just look at Vanguard, Disney, Hollywood, and Bed Bath and Beyond, now broken; these companies have lost millions due to patriots directing their dollars to companies that support Americans like My Pillow, and Chic-Fil-A.

The Globalists boycott any company that is not WOKE while we watch. Only you will never know because the boycott has a new name: Cancel Culture.

It’s time for us to cancel the Globalists and the CCP. Can you stop using a product produced by a woke culture designed to destroy the family, women, American families, and God?

Let’s look at the soda industry. Woke-A-Cola is pushing LGBTQ and helped to push MLB out of Georgia by telling lies about voter integrity. By accepting Human Rights violations in China, the company could not care less about Americans. In addition, for all those greenies: all soda, beer, and bubbly wines are filled with CO2. How can you “control climate” if our drink of choice adds to the problem? Time to cancel drinks filled with CO2. Will you join us?

Florida Governor Ron DeSantis, who routinely says that “Florida is where woke goes to die,” just shut down another woke corporate (NHL) scheme in the Sunshine State.

Let’s make 2023 the year of action. Let’s send a message. Starting in February, NO MORE CO2 drinks. No more Woke-a-Cola. No more CCP Smithfield Foods! No more World Economic Forum stakeholders! Please share…

©The Prism of America’s Education. All rights reserved.

RELATED VIDEO: Elon Musk Torches One-World Government at World Government Summit.

Microsoft Advertising Removes Labels on Conservative Outlets Describing Them as Disinformation thumbnail

Microsoft Advertising Removes Labels on Conservative Outlets Describing Them as Disinformation

By The Geller Report

This needs to happen at Google which accounts for the largest majority of online advertising. Needless to say, Geller Report has been banned from these online advertising companies.

Disinformation Inc: Microsoft removes conservative sites from blacklist ‘defunding’ outlets

This is part of a Washington Examiner investigative series about self-styled ‘disinformation’ tracking groups that are secretly blacklisting and trying to defund conservative media outlets. Here you can read other stories in this series.

EXCLUSIVE — Microsoft has removed negative flags for conservative media outlets that have blocked them from reaping key advertising dollars amid the corporation launching an internal review and suspending its subscription to a “disinformation” tracking group’s blacklist used to “defund” disfavored speech, according to internal data obtained by the Washington Examiner.

The Microsoft-owned Xandr, a major advertising company, previously abided by a secret blacklist of conservative news compiled by the Global Disinformation Index, a British organization with two affiliated U.S. nonprofit groups. Now, as Microsoft appears to be taking steps to distance itself from GDI , the company has, for the time being, deleted flags such as “false/misleading” and “reprehensible/offensive” for right-leaning websites, data show.

DISINFORMATION INC: MICROSOFT SUSPENDS RELATIONSHIP WITH GROUP BLACKLISTING CONSERVATIVE NEWS

“I just checked in Xandr’s platform again and can confirm that all rejection flags have been removed from domains,” a senior executive in the ad industry, who was granted anonymity to speak candidly, told the Washington Examiner.

Xandr had labeled 39 conservative domains as, overwhelmingly, “false/misleading,” the Washington Examiner reported on Friday. Townhall, a website under a Christian publisher called Salem Media Group, was flagged as “reprehensible/offensive.”

Read more.

Retreat: Microsoft “suspends” use of GDI after secret targeting of conservative sites exposed; Update: Retreat confirmed

It’s a win. It might only prove temporary, but it’s still a win for now.

Last week, the Washington Examiner’s Gabe Kaminsky exposed secret blacklists of conservative sites created by the “Global Disinformation Index.” Those blacklists included Hot Air, Townhall, RedState, and Twitchy, and lots of other conservative sites under the ambiguous guise of “disinformation.” No one from GDI or its sponsors ever bothered to contact us to discuss their “assessment,” nor did their reports ever cite any specific data for any of the sites blacklisted, despite a lengthy yet completely data-free discussion of their “methodology.”

GDI’s main partner appears to be advertising units, including Xander, acquired and used by Microsoft. After Kaminsky’s report, Microsoft announced that they would suspend the use of GDI’s services and conduct an internal review of how those blacklists got used. Score another one for Kaminsky:

The Microsoft-owned Xandr, an advertising company, has abided by a blacklist of conservative websites secretly compiled by the Global Disinformation Index, an organization that intends to “defund” and shut down disfavored speech. In the wake of the Washington Examiner‘s reporting, Microsoft has launched a review of its relationship with GDI and has suspended usage of the group’s services.

“We try to take a principled approach to accuracy and fighting foreign propaganda,” a spokesperson said on Saturday evening. “We’re working quickly to fix the issue and Xandr has stopped using GDI’s services while we are doing a larger review.”

Xandr subscribed prior to GDI’s exclusion list, which is said to include at least 2,000 websites, according to public documents. Microsoft’s backpedaling comes after the Washington Examiner revealed on Friday how Xandr has blocked conservative websites from receiving key ad dollars and labeled them as “false/misleading,” “hate speech,” or “reprehensible/offensive.”

The term “disinformation” relates specifically to the use of foreign propaganda. GDI’s blacklists essentially accused the sites targeted of cooperating with regimes hostile to the United States. This is not just wrong but is a terrible injustice to those of us who fall under GDI’s bogus and corrupt targeting. And it’s made worse by the revelation that some of GDI’s funding came from the State Department:

Read more.

AUTHOR

Pamela Geller

RELATED TWEET:

Some websites flagged as “false/misleading” included @dcexaminer @realDailyWire @RealClearNews @NEWSMAX @BreitbartNews @theblaze + @JudicialWatch

What this means is that Xandr slashed ad dollars from these websites based on the idea that their spreading disinfo pic.twitter.com/yhL2F2lXSz

— Gabe Kaminsky (@gekaminsky) February 10, 2023

EDITORS NOTE: This Geller Report is republished with permission. ©All rights reserved.

Don’t Fall For Joe Biden’s Economic Fairy Tale thumbnail

Don’t Fall For Joe Biden’s Economic Fairy Tale

By David Harsanyi

The president’s biggest whopper? ‘I’m a capitalist.’

Like Nero bragging about rebuilding Circus Maximus after burning it down, Joe Biden took to the podium tonight to take credit for solving a slew of problems he helped create.

At the top of his State of the Union address, the president boasted that he had “created more jobs in two years than any president created in four years.” No president — not Joe Biden nor Donald Trump — creates jobs. But Biden’s contention was exceptionally misleading, considering he inherited an economy that had been unplugged by an artificial, state-induced shutdown. If the government compels businesses to shutter, it doesn’t “create” jobs when allowing them to open.

On more than one occasion during the night, a mercurial Biden contended that Covid-19 had shut down the economy. No, states did. Politicians did.

Biden was an aggressive proponent of those shutdowns. During the 2020 presidential campaign, the president regularly attacked Republican governors for opening too early and for ignoring federal health officials. Even in August of 2021, after it was clear that shutdowns hadn’t saved any lives, Biden was still criticizing Florida’s Gov. Ron DeSantis for rejecting a new round of Covid authoritarianism, telling him to “get out of the way” of those trying to “do the right thing.”

Three years ago, the unemployment rate was at 3.5 percent. Today, Biden reminded us that it was at a historic low of 3.4 percent. More than 30 million people lost their jobs to Covid lockdowns. Biden claims to have “created” 12 million jobs during the past two years. The one big difference is that the labor participation rate still hasn’t recovered to pre-Covid numbers. It’s great that people are working again. But millions fewer are in the market for jobs.

Biden also boasted that Americans were seeing “near” historic unemployment lows for black and Hispanic workers. These historic lows were achieved before Covid lockdowns. So, if Biden deserves credit for this, doesn’t Trump? Of course, there is no specific Biden economic policy that brought us near-historic unemployment lows for minorities or an unemployment rate 0.1 percent lower than the previous administration. Washington wasted trillions of dollars propping up an economy that it previously shut down.

Speaking of spending, Biden claimed that the preposterously misnamed “Inflation Reduction Act,” which you might recall was initially called “Build Back Better,” had helped alleviate spiking prices. Only when inflation became non-transitory, and a politically problematic issue, did Biden begin arguing that more spending would mitigate inflation.

And only then did Democrats rename their bill, which was crammed with the same spending, corporate welfare, price fixing, and tax hikes — all long-desired progressive wish-list items. “The Inflation Reduction Act is also the most significant investment ever in climate change,” Biden said during his address, as if this sentence made any sense.

Presidents are often unduly blamed or given credit for economic events beyond their control. But it is no accident inflation took off as Democrats pumped hundreds of billions into a hot economy (in the case of the “infrastructure” bill, with the help of Senate Republicans) and aggravated foreseeable problems with policies that disincentivize work and undercut energy production. All this led to the biggest inflation spike since 1982. We are still at historic highs. A slew of products that consumers rely on still remain atypically expensive, and fears of additional price hikes have started to seriously corrode consumer confidence.

Biden lied that “25 percent” of the national federal debt was incurred by the previous administration when most of that debt was driven by entitlement programs passed, expanded, and revered by Democrats. And he misled the nation by claiming that his administration had “cut the deficit by more than $1.7 trillion — the largest deficit reduction in American history,” when, in fact, those “cuts” were sunsetting pandemic emergency spending that Democrats had complained wasn’t enough.

Biden went into his well-worn platitudes and myths about how the rich don’t pay taxes — “[n]o billionaire should be paying a lower tax rate than a school teacher or a firefighter!” — and proposed higher rates on the wealthy and corporations. He also promised to micromanage the economy with a slew of new regulations that would interfere in voluntary contracts struck between employees and employers and consumers and businesses.

Biden implored Congress to pass the PRO Act, a bill that would empower the government to impose unions on businesses and workers who want no part of them. Biden hawked an entire menu of crude economic populism — including price controls and protectionist trade policies that would undermine growth, competition, job creation, and innovation while driving up the cost of virtually every construction project in the country.

There were numerous lies, half-truths, and deceptions. There was a slew of antiquated economic ideas and sloganeering. But, surely, the president’s biggest lie of the night was to claim, “I’m a capitalist.”

*****
This article was published by The Federalist and is reproduced with permission.

MEDIA BLACKOUT: There Were OVER A THOUSAND Train Derailments in 2022 thumbnail

MEDIA BLACKOUT: There Were OVER A THOUSAND Train Derailments in 2022

By The Geller Report

Many of these derailments were acts of terrorism and yet they are rarely pursued or prosecuted. Instead, the Biden regime and his cloying clown Transportation secretary is whining and whining that there are too many white construction workers.

Buttigieg made no mention of the Ohio train derailment while speaking at a conference this morning but did find the time to say that there are too many white people who work construction. pic.twitter.com/q4WNcq10h9

— Greg Price (@greg_price11) February 13, 2023

BREAKING: Officials are now responding to another deadly train derailment near Houston, TX. Over 16 rail cars carrying “hazardous materials” crashed.

First Ohio, then South Carolina, and now Texas.
pic.twitter.com/uFXu1p50a8

— Antonio Sabato Jr (@AntonioSabatoJr) February 14, 2023

After the East Palestine, train disaster, there were two more derailments yesterday?

BREAKING: Another train derailment in South Carolina, the SECOND one this month. Something seems fishy! pic.twitter.com/ao9Z624d7k

— Preston Parra (@ThePrestonParra) February 13, 2023

Tucker Carlson: It’s not a good sign. There’s chaos on the ground to a lot of it. Ten, days ago, for example, a train derailed in East Palestine, Ohio. That’s about 50 minutes outside Pittsburgh. Apparently, there was some kind of mechanical failure. We still don’t have details on what that failure was. Of course, we don’t. We do know about 50 cars derailed. At least 10 of them were carrying thousands of gallons of highly dangerous chemicals, including funnel chloride, which causes cancer. Watch.

BIDEN ADMIN CRACKS DOWN ON WASHERS, FRIDGES IN LATEST CLIMATE ACTION: ‘OVERREGULATION ON STEROIDS’

JASON CARROLL, CNN CORRESPONDENT: It started with a thunderous boom and then a huge plume of thick, black smoke that could be seen for miles. This was the moment officials in East Palestine, Ohio, had been planning for a controlled release of toxic chemicals from several train cars at the site of a derailment, one that has forced thousands from their homes.  

MAN: All the way around, everybody’s frustrated, like to go home.  

JASON CARROLL, CNN CORRESPONDENT: The decision to conduct a controlled release came just days after the train derailed in the rural Ohio community sparking a massive fire. As the blaze continued to burn through the weekend, concerns quickly escalated. That’s because five of the train cars carried the chemical of vinyl chloride, an unstable material with the potential to explode, shooting deadly shrapnel up to a mile away and releasing toxic fumes into the air.  

We don’t want to second guess anybody. We got to assume everybody involved was doing their best under a highly stressful situation, but did you see that mushroom cloud? That was caused on purpose and maybe there’s a good reason. Again, no second guessing, but what it means is those clouds of toxic smoke flew up and out and that toxic smoke almost immediately began killing animals. Dead fish washed up on shore. As one hazardous material specialist put it, we basically nuked the town with chemicals.

So, then a representative from the EPA, the Environmental Protection Agency, arrived to restore calm. Yes, an EPA spokesman explained chemicals from the derailed train did enter the local watershed and yes, they did kill fish, but the drinking water supply remains totally safe. The fish are dead, but go ahead and fill your thermos and brew some coffee. Everything is fine.

Now, we don’t know if the locals in East Palestine are drinking the water tonight, but we can tell you the Biden administration doesn’t seem too concerned about it either way. Donald Trump got over 71% of the vote in the county in the last presidential election. That’s not exactly the Democratic Party’s core demographic.

Fentanyl. Toxic waste spill. Whatever. They’re not our voters and by the way, what does a chemical spill have to do with climate change? If you can’t use it to sell solar panels, it’s not really an environmental disaster. That’s the rule in Washington.

So, no one in the Biden administration bothered to issue warnings to communities that might be in the path of those toxic mushroom clouds you saw floating up from the train wreck because no one cared enough to do that. Pete Buttigieg is the official who’s supposed to be in charge of our transportation infrastructure. Technically, he’s the transportation secretary. At an appearance today, he seemed to have no idea that there was a train derailment in East Palestine, Ohio. His real concern, he explained, is that we have too many damn White construction workers in this country.

PETE BUTTIGIEG: We have heard way too many stories from generations past of infrastructure where you got a neighborhood, often a neighborhood of color, that finally sees the project come to them, but everyone in the hardhats on that project looking like, you know, doing the good paying jobs don’t look like they came from anywhere near the neighborhood. 

WHITE HOUSE CLIMATE CZAR MET PRIVATELY WITH ECO GROUP PUSHING GAS STOVE BANS

Yeah, that’s the problem, Mayor Pete – too many White guys in hardhats. Why didn’t we realize this before we built all this infrastructure that’s now crumbling? It’s actually not funny and future historians will marvel at just how much damage one incompetent narcissist can cause when he’s elevated to a serious job like Transportation secretary.

Here’s a guy who could not, on a bet, who could not at gunpoint, change his own tire, who oversees our roads, railways and airports, all of which are crumbling from mismanagement and neglect and not just from mismanagement and neglect, but also from actual acts of sabotage.

Over the last two years, the FBI has investigated more than 40 cases of rail sabotage in Washington State alone in one state. Now, a lot of those attacks involve so-called shunt devices. Those are wires stretched between tracks that interfere with the train’s electrical signals and cause derailments.

In one incident just before Christmas in 2020, a shunt caused a train to derail in Custer, Washington. That train spilled 30,000 gallons of crude oil and forced locals to evacuate their homes. Well, that’s not the environmental disaster that Joe Biden talks about because, of course, he can’t buy solar panels and the Chinese to fix it, but it was, objectively speaking, an act of terrorism. The interesting thing is very often, in fact, in the majority of cases, people who commit acts of terrorism against infrastructure, whoever they are, are never punished and the ones who are caught aren’t really punished.

IF CALIFORNIA IS OUR ENERGY FUTURE, BE AFRAID, BE VERY AFRAID, AMERICA

One woman who tried to destroy trains using a shunt got out of jail after only a year. Oh, so no one’s paying any attention and no one really seems to care because what does that have to do with environmental racism and climate? Possibly, as a result of that attitude, there are an awful lot of train derailments in this country, many more than you may realize.

In the last calendar year, more than a thousand trains went off the tracks in the United States. How’s that for a metaphor? Just today, two more trains derailed. One of them was in South Carolina and one was in Texas near Houston. The train near Houston was also carrying hazardous materials, as so many trains are. What’s going on here exactly? We’re not even going to guess, but we can tell you the chaos is not limited to our rail system. There have also been many recent attacks on our power grid. Very few of those attacks have been widely reported. Last year there were more than 100 attacks of them in the United States, attacks on our power grid.

In North Carolina this winter, for example, nearly 50,000 people lost their power in freezing temperatures when somebody shot up two energy substations and so on. Why is it not a big story? Oh, it’s not a story at all.

And of course, at the same time, we’ve also seen a series of bizarre accidents befalling the food industry, threatening our food supply. That would include unexplained fires and plane crashes and processing plants to chicken feed, that seems to stop egg production. Boy, next they’ll be coming for the water. Oh, wait, they are.

Less than a month into the Biden administration was also a highly sophisticated attack on the water supply outside Tampa.

CBS REPORTER: Pinellas County Sheriff Bob Gualtieri says a water treatment plant operator first noticed the remote access hack. The bad actor increased the amount of sodium hydroxide or lye in the water supply from 100 parts per million to more than 11,000 for the 15,000 residents of Oldsmar, Florida. The increase of sodium hydroxide in the water supply could have caused vomiting, chest and abdominal pain. 

PINELLAS COUNTY SHERIFF BOB GUALTIERI: This type of activity and this type of hacking of critical infrastructure is not necessarily limited to just water supply systems. It can be anything.  

Oh, an attack on our water supply. That’s weird. I didn’t read that in the New York Times, but what’s interesting. Not to connect the dots or anything, that was not the only attack on our water supply that year. In January 2021, there was a similar effort to poison the water treatment plant that serves the San Francisco Bay area. An unidentified hacker accessed the facility’s computers remotely. According to NBC, “After logging in, the hacker deleted programs that the water plant used to treat drinking water.”

Now, fortunately, in this case, somebody noticed it. The next day the attack was discovered in those programs were reinstalled, so nobody got poisoned, but they kept trying. There were similar hacks of water treatment facilities in California in August of 2021. There was one in Maine in July of 2021. There was one in Pennsylvania in May of 2021; in Nevada, in March; in New Jersey in September of 2020; in Kansas in March of 2019 and so on.

Who is looking after our water supply? Water, that’s kind of basic. That’s the job of the EPA. But what does protecting the water have to do with passing out cash in the name of remediating environmental racism? Oh, nothing. So, they’re not paying attention.

In fact, they’re not paying attention to such an extent that even The Washington Post, which is a shill for the administration, if there ever was one, pointed out that, “For more than two decades, the EPA has not been resourced or organized to secure the nation’s water and wastewater sector against physical and cyber threats.”

Wait a second. So, nobody is paying attention to the most critical infrastructure— not the racist roads but food, water, energy, transportation, infrastructure? Food, water, energy, infrastructure—what does it add up to? Oh, that adds up to a country. You can’t have a country without those things and in every single case, whatever the cause is, food, water, energy and infrastructure are being degraded. Who knows why? If you didn’t know any better, you think there might be a war going on.

Why is no one talking about this?

AUTHOR

Pamela Geller

RELATED ARTICLES:

‘Do We Stay?’: Ohioans Seek Answers After Massive Train Derailment Casts Toxic Plume Over Their Town

‘WE NUKED A TOWN”: Media Blackout On “Catastrophic” Environmental Disaster in Ohio Caused By Large Controlled Explosion, Journalists Covering It Arrested

Biden’s Sec of Transportation Buttigieg Launches $1 Billion Plan to Ensure ‘Racial Equity’ in Roads

Buttigieg’s DOT Spending $662M to Fix America’s Ports, But Only If The Projects Advances Destructive Far-Left Schemes (ESG)

Pete Buttigieg: ‘We Are All Lifted Up’ by Stories About Abortions

EDITORS NOTE: This Geller Report is republished with permission. ©All rights reserved.

The FED Meets and Speaks and the Stock Market Holds a Breakout thumbnail

The FED Meets and Speaks and the Stock Market Holds a Breakout

By Neland Nobel

We have just gone through another FED meeting and rate hike cycle. The FED delivered what was widely expected, another one-quarter of a percent interest rate increase.

And as usual, the action of the FED was heavily scrutinized as is the after-announcement presser and then comments from various FED Presidents.  A number of regional FED Presidents indicated that interest rates would continue to be raised but the smaller increase in rates signaled the FED is not in a panic to squash inflation. More statements after the meeting caused the market last week to hesitate and retreat modestly, even while holding on to the bulk of the breakout above resistance.

The market has been hoping for a pause in this interest rates hike cycle, and then a pivot to the downside.  Lower rates are presumed to be good for the market and good for the economy.

Despite that being common wisdom, that is not always the case.  It depends on why they are falling.  If it truly is a change in FED policy, that may be one thing.  However, if rates fall because the demand for loanable funds is collapsing, that may indicate severe economic weakness.  The latter is usually better for bonds while stocks are vulnerable to a decline in earnings under such conditions.

It is also a widely accepted dictum on Wall Street, often credited to the late Martin Zweig, that an investor should not “fight the FED.”  If the FED is raising rates, take the appropriate stance to exploit or guard against rate increases.  If the FED is lowering rates, take the correct stance to exploit that.  One is not supposed to defy or fight the FED.

But, the market seems to either be either in a mood to defy reality, defy the FED,  or just plain confused right now. FED Chairman Jerome Powell and other regional Presidents have made it quite clear that they do intend to continue to raise ratesThe market continues to hold the view that this is just talking and the FED won’t follow through.  As we pointed out last time, this skepticism by investors has largely been caused by previous FED actions and hence the FED is trapped in a predicament of its own making.

The FED over 20 years has repeatedly flooded the system with liquidity and lowered rates at every sign of trouble.  The market is convinced the FED will stay with that playbook and it will not risk recession to fight inflation.  Hence the market rallies while the FED increases interest rates expecting a U-turn in policy.

Despite a surprisingly strong employment number, the market acted like the FED would still ease off soon even though a tight labor market suggests “cost-push” inflation is alive and well. Late last week, revisions to the CPI numbers previously issued were all revised upward which added to concerns.  Inflation remains stubbornly higher than the supposed 2% target.

While the credibility of the FED remains at stake, the market also has also taken heart from many signs that the economy is slowing and that the jobs number is likely an outlier in the otherwise soft-looking data.

But if the economy is weakening, why would that be good for stocks?  Because it is asserted that economic weakness will cause the FED to relent, pause on rate hikes, and then pivot to rate reductions.

This confusion about the economic indicators and the belief that the FED is not really serious ironically has powered the market higher. While there are lots of contradictions, it is undeniable that over the past weeks, the market has been rising and putting off internal signs of strength.

The last time we visited the subject we noted that the stock market was on the verge of either breaking out above resistance or would fail at important resistance.  Our bias was, and remains, to the upside despite all the confusion.  The reason continues to be the strong internal action by the market.

The update is that the market succeeded in breaking the bear market linear trendline, and the moving averages that were clustering last time we commented, have succeeded at crossing, thus providing what technical types call a moving average buy signal.  Thus we have two pluses for the market and suggest further advance upward.

We continue to have strong internal days where the number of advancing issues dwarf those declining.  We also have a large number of shares hitting 52-week highs while a much smaller number are hitting 52-week lows.  About 90% of individual industry groups within the broad stock averages also are rising.

These are all indications of a market that “wants” to go up, even though the FED says it will persevere in pushing rates higher to get inflation back down, even if it risks recession and damages to the stock market.  And the market was able to break out and hold the breakout all while interest rates continue to move higher.

So, in a sense, the market is fighting the FED, which historically has been a dangerous thing to do.  Ironically, this makes the FED’s job that much harder and increases the chance of policy error.  The policy error would be to keep tightening right into the beginning of a recession thus making the recession potentially more severe than it needs to be.

Yields on the one-year Treasury are now nearing 5% after the latest inflation numbers indicate high prices are persisting and not sagging back as the market has hoped.

Usually, such a sharp rise in short rates is quite negative for stocks as it was last year but at least for the moment, the market remains sanguine believing that rates are about to retreat all the while they continue to rise.

We concluded last time that one other strong negative was that the market has become overbought in some momentum indicators and gotten very overbought in sentiment readings.  That continues to be the case.

The war in Ukraine continues to intensify as well.

What is the bottom line in this mish-mash of confused signals?  The market is climbing the ‘wall of worry.”

Our sense is the internal strength is real and that the market will most likely continue to move higher during the first quarter of the year.  However, as noted previously, the market does not usually make large or sustained advances when enthusiasm is running this hot.  Also, large sustained bull markets normally do not begin from already elevated valuation levels.  Rather, they usually begin when the market has overswung to low valuations.

It is also true that stock market action is not always connected well to economic indicators.  This seems to be one of those times. We still have serious problems to contend with.  Among these are a steady 8-month decline in the Leading Economic Indicators, an inverted yield curve ( the 2-year is .80 percent above the 10-year treasury), a contracting M-2 money supply, and a weaker real estate sector.  The last time the 2-year to the 10-year treasury was this inverted was in 1981.   We remember it well.  It wasn’t pleasant.

Enjoy the move for what it likely is: a strong bear market rally that will likely not sustain for the rest of the year.

Investors can make money in large rallies just as they can in bull markets.  But you do need to have an executable plan to protect profits since probabilities still favor that the rally will fade in the coming months.

Arizona Lawmakers Propose Ban on Taxing Rent Payments thumbnail

Arizona Lawmakers Propose Ban on Taxing Rent Payments

By Cameron Arcand

The Arizona House Ways and Means Committee voted to move forward a bill that would scrap the rent tax at the city, town and county levels.

If enacted, House Bill 2067 would not allow someone to face a tax if they’re leasing property for residential purposes, starting on Jan. 1, 2024.

Rep. Neal Carter, R-San Tan Valley, told the committee that this would serve as needed financial relief.

“A tax on rent is anti-progressive. It inordinately affects the poor. Those who are renting, after all, we don’t tax mortgages,” Carter said Wednesday. “There are states that do. I used to run a title company in New York and they had a stamp tax for mortgages. We do not, so we are instead shifting that tax burden to renters, who are typically lower-income people.”

This would not apply to lodging, like hotels and motels, “health care facilities” including long-term care, and “other transient lodging businesses,” according to the bill.

The Joint Legislative Budget Committee noted that municipalities would lose $89.6 million in revenue in the fiscal year 2024, and $230.2 million in the fiscal year 2025 as a result.

“We cannot afford to have any more cuts to our budget and our revenue. Rural communities do not have the opportunity, as many others do, to grow,” Superior Mayor Mila Besich-Lira said in opposition to the bill.

Sen. Steve Kaiser, R-Phoenix, has a similar bill making its way through the Senate, but it would instead start on Oct. 1, 2024, based on the current version of the bill.

*****
This article was published by The Center Square – Arizona and is reproduced with permission.

DeSantis Announces Plan To End ‘Woke Banking’ In Florida thumbnail

DeSantis Announces Plan To End ‘Woke Banking’ In Florida

By The Daily Caller

Republican Florida Gov. Ron DeSantis announced proposed legislation Monday designed to end “ESG woke banking” in the state, slamming ESG as an “elite-driven phenomenon” that seeks to impose policies which would otherwise “never win favor” with the public.

ESG, or environmental, social, and governance standards, are a “mechanism to inject political ideology into investment decisions, corporate governance, and really just the everyday economy,” DeSantis said during the press conference. His plan aims to eliminate its influence in the state by withdrawing government support from banks that use it and creating protections for citizens.

DeSantis highlighted ways he believes the standards negatively impact the United States and its citizens, from increasing the country’s dependence on China to violating company’s duties to their shareholders and undermining the democratic process.

“This is a distortion of a government by and for the people,” DeSantis said. “They are not accountable to you.”

Part of DeSantis’ proposal would put into statute a resolution he issued last August banning state pensions from considering ESG.

The resolution directed Florida’s fund managers to “to invest state funds in a manner that prioritizes the highest return on investment for Florida’s taxpayers and retirees” without regard to ESG.

Our legislative proposal will ensure that financial institutions will no longer be able to discriminate against hard-working Floridians and small businesses on the basis of political, religious or social beliefs. pic.twitter.com/kpaVCmY2zW

— Ron DeSantis (@GovRonDeSantis) February 13, 2023

The proposal would also create protections for Florida citizens against discrimination by big financial institutions for their “religious, political, or social beliefs.”

DeSantis argued the standards often target “disfavored” groups, such as Second Amendment advocates and companies like The GEO Group, a Florida-based private corrections company that holds a contract with U.S. Immigration and Customs Enforcement (ICE).

Brandon Wexler, owner of Wex Gunworks, spoke during the press conference on his experience having his accounts shut down by Wells Fargo after banking with the company for 25 years.

Wexler said he received a letter stating the company does not lend to “certain types of industries.”

DeSantis’ proposed legislation will also prohibit financial institutions from using “Social Credit Scores” in banking and lending decisions, ban the housing of state or local funds in institutions that promote ESG and ensure ESG is not used in investment decisions or issuing bonds at the state and local level. Additionally, it will direct the Attorney General and Commissioner of Financial Regulation “to enforce these provisions to the fullest extent of the law.”

“Florida, as usual, is leading the charge against this,” DeSantis said.

Florida Senate President Kathleen Passidomo and House Speaker Paul Renner also joined the press conference.

“The goal of corporate activism seen in environmental, social, and governance investing (ESG) is to bypass democracy and transform capitalism to serve an ideological agenda,” said Renner in a statement. “We will not allow these martini millionaires to push unsafe and unsound investment practices that silence debate in the political process, weaken investment strategies for Florida retirees, and discriminate against any individual’s beliefs. I am proud to stand with Governor DeSantis and Senate President Passidomo to put taxpayers, investors, and Florida retirees first.”

AUTHOR

KATELYNN RICHARDSON

Contributor.

RELATED ARTICLE: Republicans Plot Legislative Avalanche Targeting Progressive Big Biz

EDITORS NOTE: This Daily Caller column is republished with permission. ©All right reserved. All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Every Dollar The U.S. Throws At Ukraine Zaps Resources From Our Own Depleted Military thumbnail

Every Dollar The U.S. Throws At Ukraine Zaps Resources From Our Own Depleted Military

By Tyler Stone

The state of U.S. military production should be more concerning to the American public than Ukraine’s corruption.

Earlier this week, The New York Times reported on the Ukrainian government’s recent shake-up to fight corruption. “The dismissals appeared to reflect Mr. Zelensky’s goal of reassuring Ukraine’s allies — which are sending billions of dollars in military aid — that his government would show zero tolerance for graft as it prepares for a possible new offensive by Moscow,” according to the Times. Why did it take Volodymyr Zelensky 11 months to address the corruption issue? There have been signs of the problem for many months now.

Ukrainian-born Rep. Victoria Spartz, R-Ind., who at the beginning of the invasion was very supportive of Ukraine, more recently began to question Zelensky’s administration. Spartz wanted to have greater oversight on American aid to Ukraine, for which she was criticized by many in both parties.

With the recent removal of several officials, it appears there were grounds for questioning where the funds were being spent in Ukraine. The United States has been by far the largest supporter of military aid to that country, despite the European Union having similar GDP and 100 million more in population. Military equipment is the most important aid to keeping Ukraine’s military armed and fighting, which might be why Zelensky is trying to address corruption now.

With Republicans having control of the House of Representatives, several Republicans want greater oversight of the money being sent to Ukraine. It is unfortunate that it took a change in House leadership to make sure American taxpayer money is being spent properly overseas.

U.S. Military Production at Risk

The state of U.S. military production was another news story that broke this month — and this story should be more concerning to the American public than Ukraine’s problems. The Center for Strategic and International Studies think tank released a report on the U.S. defense industry and military aid to Ukraine. The report found that the United States’ “defense industrial base is not adequately prepared for the competitive security environment that now exists.” The United States is ranked third in casting production, which is necessary for creating weapon systems, and the lag time for the production of most weapons is more than a year.

CSIS believes the United States would run out of precision missiles and other advanced technology in less than a week in a Taiwan Strait conflict. If that were to happen, the United States would have to resort to more crude weapon types, just as Russia has resorted to in Ukraine. The 20 High Mobility Artillery Rocket Systems (HIMARS) that the United States sent to Ukraine could be replaced in about three years depending on the production surge rate. HIMARS have been very effective in Ukraine, but this highlights the continued danger of the United States’ ability to produce weapon systems. If America needs many of these weapon systems in short order, it appears the capability is not there to produce them.

A Depleted Military Can’t Overcommit

This is not a debate about aid to Ukraine but rather a debate on U.S. military production capabilities. The war in Ukraine should be viewed as a sideshow for the United States by capability alone. More than $100 billion in aid has been sent to Ukraine. This is not a small amount, but with a defense budget of more than $700 billion annually, the Ukraine war should not be straining our military. If a conflict did arise that threatened the United States, it would certainly expend more munitions and weapon systems than the Ukraine-Russian war has spent.

For a historical example, the battles fought over Ukraine in World War II committed roughly a third of Germany’s and the Soviet Union’s armies on the Eastern Front. If there is a larger conflict today, the United States would have to commit many more weapons in more theaters than just Ukraine.

Without a strong production capability, the United States would have to sacrifice its commitments in several regions throughout the world. Many Americans don’t want to hear this, and many policymakers ignore this reality, but unless the industrial production gets stronger, we might see many more Afghanistan withdrawals and friendly nations subjugated by great power rivals. Sen. Josh Hawley, R-Mo., wrote in December to Secretary of State Antony Blinken that there was a $18.7 billion weapons backlog for Taiwan. If the United States is falling behind in its support during peacetime, it would certainly fall further behind during a war.

For years, the United States ignored its industrial weakness and capability, and media outlets and politicians mocked the idea of shipbuilding and fleet sizes, only to find it a valid concern 10 years later. If the United States wants to compete in the coming decades on the world stage, it needs to address this clear weakness in its military. For the past 30 years, the United States has waged war on rogue nations and terrorists in distant regions. The world has changed, and those wars that were fought over the past decades should not be viewed as the standard for defense planners.

The CSIS report also mentions how high inflation is damaging U.S. production. Policymakers need to get the United States economy back on a strong footing, with a stronger dollar and a robust energy sector.

Hope in Historical Precedent

The good news is that this has been done before. In 1968, the United States was in a fairly similar situation as today. The Johnson administration had spent much on both domestic and foreign policy. The war on poverty and the Vietnam War had drained our nation’s budget, weakened its economy, and constrained its movement in the world. Throughout the 1970s the United States had high inflation, severe energy shortages, cultural divisions, and a defeated military. Due to the paralysis of the United States, the Soviet Union took advantage in the 1970s and expanded its influence in the world.

With the right reforms, the United States under President Ronald Reagan was able to challenge the Soviets by the mid-1980s and eventually win the Cold War to become the sole superpower in the 1990s. This is not that far off from where the United States is currently. The war on terror and war on Covid expended many of our nation’s resources, just as our chief rivals are becoming more aggressive.

The bad news is that the United States might not have long to right the ship. We need leaders and policymakers who can quickly make these important adjustments and have a clear and honest vision of what the future holds for the United States.

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This article was published by The Federalist and is reproduced with permission.s

86 House Democrats Vote Against Resolution Condemning Socialism thumbnail

86 House Democrats Vote Against Resolution Condemning Socialism

By Tyler O’Neil

The U.S. House of Representatives passed a resolution condemning socialism on Thursday [2/2/23], with nearly all Republicans and half of the Democrats supporting it.

H. Con. Res. 9, a resolution “Denouncing the horrors of socialism,” passed 328 to 86, with 14 Democrats voting present, and six members (three Republicans and three Democrats) not voting.

“This was a win for democracy,” Rep. Maria Elvira Salazar, R-Fla., the daughter of Cuban exiles who represents Miami-Dade County and who sponsored the resolution, told The Daily Signal in a statement Thursday.

“As the representative of the city of Miami, and daughter of Cuban exiles, I say that this resolution hits close to home for us all,” she added. “We know that socialism only brings misery, oppression, and exile, wherever it is tried.”

The resolution states “That Congress denounces socialism in all its forms, and opposes the implementation of socialist policies in the United States of America.”

It does not specifically define socialism, but describes “socialist ideology” as necessitating “a concentration of power that has time and time again collapsed into Communist regimes, totalitarian rule, and brutal dictatorship.”

It defines the United States of America as founded on an opposite belief: “the belief in the sanctity of the individual, to which the collectivistic system of socialism in all of its forms is fundamentally and necessarily opposed.”

The resolution also attributes the deaths of “over 100,000,000 people worldwide” to socialism, including 10 million people sent to the gulags in the Soviet Union; between 15 million and 55 million starving in the wake of the famine caused by the Great Leap Forward in China; 1 million people dead in the killing fields of Cambodia; and up to 3.5 million people starving to death in North Korea. It also notes that socialism devastated the once-thriving economies of Cuba and Venezuela.

“Every socialist is a dictator in disguise,” Salazar said in remarks on the House floor before the vote. “Today, Cubans by the thousands, throw themselves to the sharks in the straits of Florida looking for freedom and hoping to get to the district that I represent on this floor.”

“It is a lie that socialism will solve your problems, economic or social,” she added. “We cannot let this evil ideology take hold in this country.”

Many prominent Democrats voted against the resolution, including Reps. Julian Castro and Al Green of Texas, Jerry Connolly of Virginia, Rosa DeLauro of Connecticut, Pramila Jayapal of Washington, Summer Lee of Pennsylvania, Jerry Nadler and Alexandria Ocasio-Cortez of New York, Ilhan Omar of Minnesota, Ayanna Pressley of Massachusetts, Jamie Raskin of Maryland, and Rashida Tlaib of Michigan.

Lee responded to a group of Democrats who condemned socialism by saying, “They’re going to call you socialists anyways.” Ocasio-Cortez retweeted her.

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This article was published by FEE and is reproduced with permission.