Bidenomics: Nasdaq: -33%; S&P: -20%; Dow: -9%; Bonds: -12% thumbnail

Bidenomics: Nasdaq: -33%; S&P: -20%; Dow: -9%; Bonds: -12%

By Dr. Rich Swier

“Americans have lost $13.5 trillion in household wealth.” — Julio Gonzalez, @TaxReformExpert


As we approach January 1st, 2023 Americans have now had nearly two years of Biden’s Build Back Better agenda.

As a tweet by Carlos Löwenbraü put it, “If U hate Trump after this 24 month shitshow your commitment to stupidity is impressive.”

We must agree.

We have labeled those who elected Biden “the depraved electorate.” The depraved are the 87% of Democrats who give Biden and his administration, “positive marks for the job he is doing.” The “depraved electorate” are willfully ignorant of what is really happening around them.

Our enemies are all taking advantage of this American fool while they can.

It will be far easier to limit and undo the follies of a Biden presidency that to restore the necessary common sense and good judgement of this depraved electorate willing to have such a man for their leader.

The problem is much deeper and far more serious than Mr. Biden, who is a mere symptom of what ails America. Blaming the prince of fools should not blind anyone to the vast confederacy of fools that made him their prince.

The republic can survive a Biden, who is after all, merely a fool.

It is less likely to survive a multitude of fools, such as those who made and now defend him as their president!

Time to focus on the depraved electorate who defend, encourage and support Biden, the prince of fools.

Will November 2024 be a reckoning? Will the electorate give us a conservative president and majorities in both the U.S. House and Senate?

If not gird your loins. Armageddon is coming!

©Dr. Rich Swier. All rights reserved.

Under The Biden Economy, The Average Family Lost $7,100 thumbnail

Under The Biden Economy, The Average Family Lost $7,100

By Isabelle Morales

President Biden’s policies have now cost the average American family about $7,100according to a new report by the Heritage Foundation. While Democrats have proven time and time again that they value their social agenda more than Americans’ economic security, the level of harm represented in this figure is shocking… and infuriating.

As the Heritage report outlines, the average family has lost $5,800 due to inflation and $1,300 due to higher interest rates:


Under Biden, prices have risen so much faster than wages that the average family has lost $5,800 in real annual income. That loss is thanks to the ‘hidden’ tax of inflation, caused by the Biden administration and congressional Democrats’ policies.

Higher interest rates are now costing the typical family another $1,300 annually. Combined with a lower real income, this effectively costs families a total of $7,100 in annual income under Biden.

In January 2021, before Joe Biden took over the presidency, annual inflation was at a stable 1.4%. Since then, the high inflation rate has broken numerous 40-year records, has significantly outpaced wage growth, and has driven Americans to take on more debt than ever.

Today, over a year since inflation began surging, the consumer price index is still at an alarming rate of 7.1%. The price of food has increased by 10.6% over the year: staples like rice and poultry have increased by 14.1% and 13.1%, respectively. Energy prices have risen by 13.1%, with the cost of fuel oil increasing by an astounding 65.7% and energy services by 14.2%.

Wages are also falling behind. In November, the real average weekly earnings decreased by 3%. This trend has also been consistent for over a year.

At this point, a significant majority of Americans—63%—are living paycheck to paycheck. In fact, many are losing money each month and taking on debt to pay for essentials. The total credit card debt in the United States is now at $930 billion after a 15% jump in balances—the largest annual jump in more than 20 years. Not only are Americans taking on more debt, but they’re carrying these balances for long periods of time, making it even harder to pay off as interest piles. Among Americans who carry credit card debt from month to month, 60% have been in debt for over a year.

Because most credit cards have a variable rate, millions of Americans are directly and negatively affected by the Biden administration’s interest rate hikes.

On top of the Biden administration’s monetary policies, Americans have primarily been harmed by the Administration’s fiscal policies that have driven inflation.

President Biden has passed bills and executive orders that paid Americans not to workexpanded tax creditspaused federal student loan repaymentscanceled the Keystone Pipeline, and more.

Just a few months ago, during this time of high inflation and a recession, Democrats passed a massive tax-and-spend plan. Democrats’ reconciliation bill contained substantial tax hikes including a 15% corporate alternative minimum tax, a $6.5 billion natural gas tax, a $12 billion crude oil tax, a $1.2 billion coal tax, and several more. The reconciliation bill also included careless spending on climate initiatives, Obamacare subsidies, and supersizing the IRS.

Both tax hikes and reckless spending have driven inflation. According to a 2020 National Bureau of Economic Research paper, 31% of the corporate tax rate is borne by consumers through higher prices of goods and services. Further, the federal government has flooded the economy with so much money that demand is growing too fast for production to keep up, also resulting in inflation.

A $7,100 donation to one family, in many circumstances, could be life-changing. The theft of $7,100 over the course of the year is equally life-altering, though Democrats had hoped it would simply go unnoticed. They should not get away with it. For ineffective climate subsidies and COVID funds that disappeared before our very eyes, the Left has stolen thousands of dollars from working families.

*****

This article was published by Independent Women’s Forum and is reproduced with permission.

Bob Farrell’s 10 Rules and the Market in 2023 thumbnail

Bob Farrell’s 10 Rules and the Market in 2023

By Neland Nobel

Banks, brokerage houses, and financial pundits are all issuing their post-mortem reflections on 2022 and looking into the new year. They will attempt to tell us what is likely for stocks, bonds, real estate, gold, and crypto for the coming year.

We will make our own attempt in due time, but we admire the effort of the financial community. We humans just don’t have reliable ways of looking into the future and there are many unpredictable variables that can influence the outcome.  So, we admire that some would stick their necks out knowing full well they could have them chopped off by unpredictable events.

Bob Farrell for many years was the chief technical analyst for Merrill Lynch. This was long before Mother Merrill got absorbed into a giant bank. As such, Farrell taught an entire generation, a generation now dying off, about how to think about markets. Over 40 years ago, we listened to his daily commentaries.

Farrell saw the benefit in what is called technical analysis. This basically is a system that subjects market price fluctuations to tools such as trendlines, moving averages, momentum indicators, sentiment indicators, and many other systems. It is based on the notion that prices are information. Further, it is based on the idea that price patterns can be helpful in predicting market movement in the future. Much like in the physical world, once price starts in one direction, it will tend to persist in that direction, at least for a while.

For technical people, price action is not random, but follows identifiable patterns and rules. In this sense, they disagree with academics that say investing is a “random walk”, and the only way to succeed is to buy and hold. No, technical people think there is a good and bad time to invest.

In some sense, this is the same as fundamental analysis which studies the economy, earnings, and accounting data in an attempt to determine if conditions are good or bad, cheap or expensive, for investing in stocks or other investments.  Fundamentalists believe that by studying the economy and companies, one can identify the good conditions to invest in and the bad conditions to avoid.  Think of Warren Buffet.

In his long years of dealing with the practical aspect of investing, Farrell came up with 10 Rules, and more recently, added one more.

There are some variations of this list one can find on the internet, but the following are from Walter Deemer, who worked alongside Farrell at Merrill for many years.

1. Markets tend to return to the mean over time.

2. Excesses in one direction will lead to an opposite excess in the other direction.

3. There are no “new eras” – excesses are never permanent.

4. Exponentially rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways.

5. The public buys the most at the top and the least at the bottom.

6. Fear and greed are stronger than long-term resolve.

7. Bull markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names. 

8. Bear markets have three stages: sharp down, reflexive rebound, and a drawn-out fundamental downtrend.

9. When the experts and forecasts agree – something else is going to happen.

10. Bull markets are more fun than bear markets.

Subsequent to his retirement, Farrell added one more:

11. Though business conditions may change, corporations and securities may change, and financial institutions and regulations may change, human nature remains essentially the same.

In his book, Deemer on Technical Analysis, he says:  …”what Bob Farrell’s Rules do is to elevate you past the basics; they make you think about the stock market and your investments, not just follow them via some mechanical interpretation of some rules.”

The coming year is likely to be turbulent. The FED will tighten they say until the inflation fever is broken. They are raising rates into an already slowing global economy that is badly overburdened with debt and runaway government spending. The range of possible scenarios is from the “soft landing” predicted by most, to something much more ugly on the downside. It could vary from inflation to actual deflation.

Keeping your cool won’t be easy. When stressed, consider these rules.

Deemer himself has come up with one final rule worth pondering. When it is time to buy stocks, you won’t want to.

18 Absurdities of the McConnell-Schumer Omnibus Spending Bill thumbnail

18 Absurdities of the McConnell-Schumer Omnibus Spending Bill

By Richard Stern

Congressional leaders have dropped 6,825 pages of text for their “omnibus” spending bill, plus explanatory materials that include a list of at least 4,000 earmarks, on the doorstep of every American family.

When announcing the gargantuan spending bill, its authors put “the federal government” before “American families,” and that is exactly what this bill is intended to do.

However, it’s only the beginning of the list of absurdities in this spending bill.

In a stunning betrayal of the American electorate, Senate Minority Leader Mitch McConnell, R-Ky., worked with Senate Majority Leader Chuck Schumer, D-N.Y., and other Democrat leaders to author this example of congressional corruption. (House Republican Leader Kevin McCarthy, D-Calif., expected to succeed fellow Californian Nancy Pelosi as House speaker Jan. 3, leads GOP opposition to the spending package in that chamber.)

Far from the guise of keeping government’s light on, the foundation of this omnibus spending bill is a vast collection of special-interest handouts and fuel for the fires of inflation and the woke, leftist establishment.

The burdens of this bill, tragically, will stifle our economy and accelerate the dissolution of the fabric of our civil society for many years to come.

Here are 18 of the absurdities of the omnibus, compiled by myself and fellow Heritage Foundation policy experts Doug Badger, Preston Brashers, Lindsey Burke, Matthew Dickerson, David Ditch, Leslie Ford, Rachel Greszler, Edmund Haislmaier, Melanie Israel, Robert Moffit, Lora Ries, Thomas Spoehr, and Katie Tubb. (The Daily Signal is Heritage’s multimedia news organization.)

1. An Egregious Oversight

In under two weeks, the new GOP majority in the House finally will have the chance to use the power of the purse to rein in the reckless administration of President Joe Biden.

Instead, Republicans seem poised to give up this oversight power without firing even a single shot. This omnibus bill would provide a full year’s worth of funding to the administration—locking in its regulatory regime and capacity to abusively wield the power of the executive branch.

Blocking this $1.85 trillion omnibus, and passing a short-term continuing resolution, would allow the new Congress to set funding levels for the federal government in an appropriate and transparent manner after convening Jan. 3.

This would allow Congress to work in the interest of the American people and stop Biden’s abuse of power.

2. Promoting a Culture of Death

The omnibus monstrosity retains longstanding pro-life and conscience protection riders such as the Hyde Aamendment, which prohibits the Department of Health and Human Services from spending tax dollars on elective abortions.

Including these consensus policies that have applied to federal spending bills for decades is a bare-minimum expectation for policymakers to meet. However, the spending bill includes provisions that are cause for concern for pro-life Americans.

In perhaps the clearest example of the frame of mind of the authors, the $575 million in a global health section allocated for “family planning/reproductive health, including in areas where population growth threatens biodiversity or endangered species.” This section quite literally puts plants before people.

This provision portrays humanity as a parasite, as a threat to the plants and animals that the bill’s drafters clearly see as vastly more important than the Americans and their families who Congress is supposed to protect.

As Rep. Dan Bishop, R-N.C., points out, this is a nod to the long-disproven notions of Thomas Malthus.  In the 18th century, Malthus argued that population growth would overtake our ability to grow food and other resources, ending in mass starvation.

Of course, history proved Malthus wrong: Mankind’s penchant to innovate and adapt instead has led to vast expansions of our ability to provide resources for our world’s burgeoning population, making each new generation more prosperous than the last.

Dire Malthusian predictions were wrong in the 1700s, and they’re still wrong in the 21st century. In practice, authoritarian responses to “overpopulation” have caused significant human rights abuses. Take China’s devastating one-child (later two-child) policy, for example.

Incredibly, the omnibus gives a wink and a nod to curbing population growth not for the sake of people, but for the sake of plants and animals. Government spending decisions reflect not just priorities, but values. To say the bill’s crafters missed the mark is an understatement.”

Make sure you’re seated before you continue reading through the rest of the absurdities of this omnibus.

3. Costing at Least $1.85 Trillion, Then More Later

The press releases from the House and Senate Appropriations committees and congressional leadership describe the omnibus as costing $1.7 trillion. However, this is only a selective accounting, hiding the total costs to taxpayers.

In reality, the legislation would cost at least $1.85 trillion in fiscal year 2023, which began Oct. 1, once the additional provisions attached to the 12 regular appropriations bills are included.

Waiving enforcement of what is known as Statutory PAYGO would increase outlays by $132 billion in fiscal 2023 relative to what the underlying law prescribes. The supplemental appropriations for Ukraine would add $45 billion and those for natural disasters would cost another $41 billion.

Considering the PAYGO provision, “emergency” funding, increases in baseline budget authority, and expected increases in debt-servicing cost, this bill would increase the 10-year deficit by $2.65 trillion—$20,000 per household—adding to current inflationary pressures.

4. No Lawmaker Has Read This Package

No member of Congress is physically able to read all of this spending package before voting on it.

In addition to the 12 regular appropriations bills, the omnibus bill includes two supplemental spending acts and 21 other separate divisions spanning topics as complex and varied as the Electoral Count Act, public land management, and antitrust enforcement.

As mentioned, the package contains 6,825 pages: 4,155 pages of legislative text plus 2,670 pages of explanatory materials that instruct agencies how to carry out the provisions and include at least 4,000 earmarks to pay for the pet projects of representatives and senators.

All totaled, this material is roughly twice as long as the Bible, and lawmakers planned to vote on it in fewer than four days.

5. Offering an Unprecedented Pork-ibus of Earmarks

Incredibly, the 4,155 pages of the omnibus bill don’t cover everything Congress wants to spend your taxpayer dollars on. The other 2,670 pages of “explanatory statements” contain many key details.

Included in the extra documents are hundreds of pages that detail some 4,000 earmarks, aka pork projects, costing billions of dollars that the federal government doesn’t have—and that will come out of your wallets.

Earmarks were banned for 10 years, but lawmakers from both parties have brought them back. A small sampling of this year’s rancid pork includes:

  • $1.5 million to encourage people to eat outdoors in sunny Pasadena, California.
  • $1.1 million for a solar array in cloudy Kirkland, Washington.
  • $2 million for B360, a group that promotes dirt-bike culture in Baltimore.
  • $3 million for the tiny and remote island of St. George, Alaska, for water infrastructure and $2.5 million for harbor improvements, for a total cost of over $82,000 per resident.
  • $500,000 for a skate park in Rhode Island.
  • $4.8 million for an environmental impact report on the possible expansion of Chicago’s rail transit system. Bureaucracy at work.
  • $13 million to expand the airport in the tiny city of Abbeville, Alabama.
  • $4 million for “Soy-Enabled Rural Road Reconstruction” in Iowa.
  • $2.35 million for the Leahy Center in Vermont, named after Sen. Patrick Leahy, D-Vt. The member who requested the earmark? Sen. Patrick Leahy.
  • Funding for a wide array of woke organizations and left-wing activists.

While hardworking families struggle under the weight of inflation caused by Washington’s reckless spending spree, Congress is going hog-wild with wasteful and inappropriate earmarks.

Calling this shameless would be an understatement.

6. Waiving Statutory PAYGO Enforcement, Increasing Inflationary Spending

In an extraordinary example of fiscal irresponsibility, the omnibus spending bill includes a provision that would waive enforcement of Statutory PAYGO this year and next, resulting in a $132 billion government spending increase in each of the next two years.

The Statutory Pay-As-You-Go Act of 2010, often called PAYGO, is a budget law put into place by President Barack Obama that requires Congress to pay for new deficit spending over time with cuts elsewhere in the budget.

Today, Biden’s irresponsible spending spree, including the $1.9 trillion American Rescue Plan and the misleadingly named Inflation Reduction Act, have egregiously violated these rules and would trigger $132 billion in spending cuts in January.

If Biden and Congress didn’t want the reductions specified in Obama’s Statutory PAYGO to take effect, they could have replaced them with other targeted reductions, such as repealing the doubling of the size of the IRS.

Unfortunately, by waiving the budget rules, deficit-financed government spending would be much higher in 2023 and 2024 if this package passes, increasing inflationary pressures.

7. Encouraging Borrowers to Take Advantage of Debt Amnesty

The omnibus includes $2.3 million for Biden’s secretary of education to contact student loan borrowers to let them know they may qualify for cancellation of student loan debt, and to “encourage borrowers to enroll in a qualifying repayment plan.”

8. Intensifying Biden’s Border Crisis

The Biden administration’s open border and NGO processing operations have quickly resulted in America’s worst-ever border crisis.

The omnibus spending bill would prolong this crisis and spend more good money on bad policies. Congress should reject the omnibus, defund these operations, and, at the beginning of the next Congress, pass a border security bill that would truly end the crisis.

The omnibus spending bill would give the Justice Department more money ($234 million) for state and local detention in the State Criminal Alien Assistance Program to collect information on aliens and provide it to federal law enforcement. This would occur even though the Biden administration implements a “sanctuary country,” prohibiting U.S. Immigration and Customs Enforcement from enforcing immigration laws or cooperating with state and local law enforcement regarding criminal aliens.

The spending bill would give $20 million to the Secretary’s Office at the Department of Homeland Security to transfer to the Federal Emergency Management Agency’s Federal Assistance for the Alternatives to Detention Case Management pilot program.

This program simultaneously allows the left to gut immigration detention while using the facade of (alternatives to) detention without tracking the aliens, while also giving money to their preferred nongovernment organizations, or NGOs, that manage the caseload.

U.S. Customs and Border Protection also would be required to transfer $800 million to FEMA-Federal Assistance. Of that, $785 million would go for emergency food and shelter to “families and individuals encountered by the Department of Homeland Security, CPB’s parent agency.

The omnibus spending bill would require Customs and Border Protection to transport more unaccompanied alien minors, whom the Biden administration continues to entice to cross the border illegally and unaccompanied.

The bill also would provide $4.2 billion to U.S. Immigration and Customs Enforcement, or ICE, for enforcement, detention, and removal operations. These include more transportation of unaccompanied alien minors.

Another $11.2 million would be given to ICE to fund or reimburse other federal agencies for costs associated with the care, maintenance, and repatriation of smuggled aliens unlawfully present in the U.S.

In addition to the DHS secretary’s office and Customs and Border Enforcement’s transfer of money to the Federal Emergency Management Agency to care for illegal aliens, FEMA would directly receive $130 million from Congress for their food and shelter.

The spending bill also would extend a prohibition last year on using funds to construct border fencing in certain areas.

The omnibus would provide the Department of Health and Human Services with $6.4 billion over three years to house, assist, and educate refugees and aliens, especially unaccompanied minors.

The bill would provide an additional $27 million for the next two years if the number of unaccompanied minors exceeds 13,000 in any month. It must be noted that the number of Border Patrol encounters with such minors exceeded 13,000 a month 12 times since Biden took office Jan. 20, 2021.

9. Even More Funding for Leftist Groups Involved in Immigration

The omnibus also would provide significant money to other departments for immigration grant programs. Several of the same NGOs receiving money in the programs outlined above also receive money from these grants.

An immigration industrial complex has developed in this country and abroad and Congress needs to cease feeding it more money, including the proposed:

  • $13 million to the Department of Health and Human Services for migrant and seasonal Head Start programs.
  • $29 million to the Justice Department for services and activities provided by the Legal Orientation Program for illegal aliens.
  • $97.4 million to the Labor Department for migrant and seasonal farmworker programs, including housing.

The bill also would give $25 million to U.S. Citizenship and Immigration Services for the Citizenship and Integration Grant Program. The NGOs that regularly receive this grant money are some of the same organizations that receive money in other grant programs cited above.

Congress has rapidly and significantly increased this grant amount. For years, it gave $10 million annually, but doubled it last year to $20 million. Now, Congress proposes to provide $25 million.

10. Rewarding CDC for Incompetence

Since March 2020, Congress repeatedly has increased funding for the Centers for Disease Control and Prevention, despite the agency’s poor response to the COVID-19 pandemic.

The bill would reward the CDC for refusing to modernize its data systems—despite a statutory requirement in effect since 2006—by lavishing the agency with more money for data modernization.

The additional money for the CDC would come without holding it accountable for recommendations that schools remain closed for extended periods, that 2-year-olds wear masks, and other policies that harmed children.

The agency also escaped scrutiny for its unlawful decision to impose a moratorium on evictions and a mandate to wear masks on public transportation. Nor has Congress held the CDC accountable for misinformation in several of its published studies.

The fiscal 2019 budget authority for the Centers for Disease Control and Prevention was $6.5 billion. The omnibus would allocate $9.2 billion for fiscal 2023, an increase of 42% over a period during which the agency’s dysfunction became evident.

These are appropriated amounts and don’t include additional mandatory allocations. Congress may believe that money buys competence, but in the case of the CDC, that faith is misplaced.

11. Providing Self-Defeating Environmental Credits

One part of the omnibus spending bill, Section 201 of Title I, illustrates yet again the incoherence of a too-big government. The bill would create a verification and registration framework managed by the Agriculture Department for voluntary environmental credit markets.

Farmers, ranchers, and owners of private forestland would be able to generate credits to be sold for projects that “prevent, reduce, or mitigate greenhouse gas emissions.”

Given Biden’s liberal use of executive power and his campaign focus on global warming as an existential crisis—requiring an “all of government” response—it is anyone’s guess how long these programs will actually remain voluntary.

Ironically, one activity that would qualify for a credit is “prevention of the conversion of forests, grasslands, and wetlands.” It’s ironic because other federal subsidies and programs—namely the Renewable Fuel Standard and exorbitant biofuel tax credits—incentivize and indeed have caused the conversion of millions of acres into corn and soybean fields. These measures actually may increase greenhouse gas emissions.

The other irony: Expanding these programs likely would increase costs for consumers while having a negligible impact on global temperatures, regardless of one’s opinion of global warming.

When the government is working at cross-purposes with itself, perhaps it’s a sign that government has grown too big.

12. Doubling Down on Distortion of Energy Supply

The Jones Act requires that products shipped between U.S. ports be carried only on the small number of vessels that comply with the law by being U.S.-made, flagged, and crewed.

Because of the Jones Act, it’s often cheaper for states to import petroleum from other countries rather than do business with oil refineries in the U.S. It’s why what little oil the U.S. used to import from Russia was going to Northeastern states and one reason why those same states face real supply insecurity this winter.

And yet, the authors of the omnibus spending bill seem not to care about this very real crisis; shockingly, page 692 would increase barriers to waiving Jones Act restrictions in times of emergency. The bill would prevent waivers to deliver oil from the Strategic Petroleum Reserve on non-Jones Act ships without first going through yet more paperwork to approve such a waiver by the Homeland Security, Energy, and Transportation departments.

Theoretically, the Strategic Petroleum Reserve is meant for situations of severe supply disruptions and emergencies. In such a situation, the last thing victims want to hear is that fuel couldn’t arrive in time because the paperwork wasn’t done yet.

13. Increasing Funding for IRS

The so-called Inflation Reduction Act included $80 billion in new supplemental and mandatory funding for the Internal Revenue Service.

Despite that, the omnibus spending bill would leave unchanged the prior year’s level of spending in the IRS budget for enforcement and other main categories.

This would lock in the looming threat of a doubled IRS army coming for every American family and small business.

14. Providing a Chauffeur for IRS Chief

A provision in the spending bill reads:

Notwithstanding section 1344 of title 31, 17 United States Code, funds appropriated to the Internal Revenue Service in this Act may be used to provide passenger carrier transportation and protection between the Commissioner of Internal Revenue’s residence and place of employment.

15. Raiding Social Security to Fund Woke Union Agenda

The Congressional Budget Office just reported that Social Security will be insolvent by 2033.

Yet this massive spending package would allow money to be diverted from Social Security’s trust fund—and then reimbursed by taxpayers—to cover union expenses.

The trust fund also could be used to pay Social Security Administration employees to work for their union instead of performing the jobs they were hired to do for America’s seniors and retirees.

16. Using Defense Funding for Other Purposes

The defense funding levels of the omnibus generally follow the National Defense Authorization Act and would favorably affect our national defense capabilities, but they do come with the usual waste and inefficiency.

Of the additional $45 billion in aid slated for Ukraine, only 62% of it would go toward military activities. A total of $17 billion would go to economic assistance and efforts to support the Ukrainian government.

The omnibus also would direct $2 billion in defense dollars toward so-called clean energy investments. Billions more would go toward research and woke items unrelated to the military, such as implementation of recommendations from bureaucratic independent review boards.

At a time when rising autocratic powers threaten the interests of the American people, our allies, and the free world, our defense investments must be aimed at bolstering our military capabilities rather than empowering the woke, radical Left or entrenching civilian bureaucracies here and abroad.

17. Throwing Good Money After Bad at NIH, Biden Initiative

The omnibus spending bill would award the National Institutes of Health a 5.6% increase in funding, bringing the total to a whopping $47.5 billion.

And yet, NIH has been uncooperative with Congress on vital issues, including the origin of the COVID-19 pandemic and the troubling revelations about agency leadership’s response to scientific dissent on the issue of comprehensive lockdowns.

The omnibus also would give $1.5 billion to something called the Advanced Research Projects Agency for Health, or ARPA-H. This Biden administration initiative is supposed to “support the development of high-impact research to drive biomedical and health breakthroughs.”

The administration’s justification? “Whereas most NIH proposals are ‘curiosity-driven,’ ARPA-H ideas would be largely ‘use-driven’ research—that is, research directed at solving a practical problem.”

If the initiative does indeed offer a more effective and promising approach, then it would make sense to take some of NIH’s current $45 billion in annual funding and redirect it to the new project. Instead, the omnibus would give $2.5 billion more to NIH (bringing its budget to $47.5 billion) and then throw another $1.5 billion at ARPA-H.

Apparently, the Biden administration and congressional Democrats don’t believe their own press releases, since they would increase funding for NIH’s current activities (which they claim are suboptimal) by more than what they would spend on ARPA-H.

18. More Wasteful Food Stamp Funding

In the omnibus spending bill, Congress has punted on real accountability for the food stamp program. The lawmakers would fully fund food stamps, including the Thrifty Food Plan increase, for fiscal 2023.

This comes just after the General Accountability Office released its final report investigating the process by which the Agriculture Department updated the Thrifty Food Plan. As GAO detailed, this update was the first “increase beyond inflation for the first time in 45 years,” resulting in an unprecedented 21% increase in food stamp benefits.

The report illustrates how a lack of documentation and transparency unilaterally increased spending for the food stamp program, also known as SNAP, by $256 billion.

The omnibus would require a report on the extent of skimming from electronic benefit transfers, in which criminals attach to point-of-sale or POS machines and PIN pads to steal from EBT cards. However, even before Congress knows the full extent of this problem, this bill would require states to provide at least two months of “replacement” benefits for recipients who simply report money “stolen” by way of EBT skimming.

Before Congress investigated the effectiveness of “Pandemic EBT,” where the Agriculture Department sent schoolchildren temporary emergency nutrition benefits loaded on EBT cards, lawmakers authorized a permanent program to send summer EBTs to families with children who qualify for free or reduced-price meals during the school year.

This massive omnibus spending bill would significantly increase the size and scope of the federal government and inflation-driving deficits, at a time when American families are suffering from a high inflation tax and the national debt is reaching record levels.

Passage of this package would advance a radical liberal policy agenda that has been rejected by voters across the country. With the next session of Congress beginning in less than two weeks, lawmakers instead should allow the House’s new Republican majority to write responsible funding bills that cut excessive spending and reflect the priorities and values of the American people.

*****

This article was published by The Daily Signal and is reproduced with permission.

The EPA’s Latest Regulation Could Devastate The Trucking Industry thumbnail

The EPA’s Latest Regulation Could Devastate The Trucking Industry

By The Daily Caller

  • The Environmental Protection Agency finalized a rule Tuesday that will impose stricter emissions standards on new heavy-duty vehicles, a regulation that will significantly raise operating costs for truckers, experts and industry representatives told the Daily Caller News Foundation.
  •  “The costs associated with this are also a concern because these are costs that not only the industry will bear … prices will go up for everybody,” Texas Trucking Association President John Esparza told the DCNF.
  • “It’s an overreach that is indicative of this administration’s tendency to set aside balance to achieve the goals of activists that they are politically aligned with,” Mandy Gunasekara, a senior policy analyst for the Independent Women’s Forum and former EPA Chief of Staff during the Trump administration, told the DCNF.

The Environmental Protection Agency (EPA) finalized a rule Tuesday that will impose stricter nitrogen dioxide emissions standards on new heavy-duty trucks, a move that will substantially hike operating costs for truckers, experts and industry representatives told the Daily Caller News Foundation.

The EPA’s rule, which is more than 80% stricter than the previous regulation, will require large trucks, delivery vans and buses manufactured after 2027 to cut nitrogen dioxide emissions by nearly 50% by 2045, according to an agency press release. The agency’s rule is intended to push truckers to phase out diesel-powered vehicles and use electric vehicles (EV) instead; however, the compliance costs associated with such rules could suffocate an industry that is not ready to transition to EVs, experts told the DCNF.

“It’s an overreach that is indicative of this administration’s tendency to set aside balance to achieve the goals of activists that they are politically aligned with,” Mandy Gunasekara, a senior policy analyst for the Independent Women’s Forum and former EPA Chief of Staff during the Trump administration, told the DCNF. “It’s going to squeeze out the mid-sized and smaller trucking companies because they’re not going to be able to afford to purchase the new, extremely expensive equipment required to continue to do what they do.”

The new rules are intended to phase out older trucks that emit more nitrogen dioxide and will push drivers to purchase electric trucks or newer models of diesel trucks that do not produce as much nitrogen dioxide when they burn fuel, according to the EPA.

“If small business truckers can’t afford the new, compliant trucks, they’re going to stay with older, less efficient trucks or leave the industry entirely,” Owner-Operator Independent Drivers Association President Todd Spencer told trade publication Freight Waves. “Once again, EPA has largely ignored the warnings and concerns raised by truckers in this latest rule.”

EPA Administrator Michael Regan said that the rule would protect “historically overburdened communities,” that are disproportionately affected by trucking emissions as truck freight routes are often located near “vulnerable populations,” according to the press release. Nitrogen dioxide gas can exacerbate respiratory diseases like asthma and form acid rain in the atmosphere which can damage lakes and forests, according to the EPA.

“The EPA is happy to go easy on big trucking since they support regulations that will harm their smaller competitors far more,” Steve Milloy, Energy and Environmental Legal Institute senior legal fellow and former Trump administration EPA transition team member, told the Daily Caller News Foundation.

Regan announced the new rule in front of an electric garbage truck produced by Mack Trucks and following his remarks, Mack spokesman John Mies stated that his company supports the administration’s zero emissions targets for trucks and is working to cut “dangerous” emissions produced by diesel trucks, according to CNN.

“Companies have taken the initiative to electrify a certain percentage of their fleet by a certain year and have made plans to build the necessary infrastructure, but they are then told that there isn’t enough power to achieve what they’re seeking,” Texas Trucking Association President John Esparza told the DCNF. “The costs associated with this are also a concern because these are costs that not only the industry will bear … prices will go up for everybody.”

The EPA’s final rule is the first step in its “Clean Trucks Plan” which seeks to heavily regulate trucks’ emissions to push drivers to adopt electric trucks.

Gunesakara echoed Esparza’s comments and said that such targets were a “technological fantasy” that could cost truckers their jobs due to the high price of electric trucks. Gunesakara added that the EPA’s rules would force truck drivers to drive older, more polluting and less efficient vehicles for longer as diesel trucks will be rapidly phased out long before EVs can become a more viable alternative.

The EPA touted its new rule and said that it will result in up to 2,900 fewer premature deaths, 18,000 fewer cases of childhood asthma and 6,700 fewer hospital admissions as well as an overall annual net economic benefit of $29 billion due to fewer missed work days. The agency’s trucking rules are less strict than California’s regulations as heavy vehicles in the state must cut nitrogen oxide emissions by 75% starting in 2024, and 90% starting in 2027, according to a California Air Resource Board rule.

The EPA did not immediately respond to the DCNF’s request for comment.

AUTHOR

JACK MCEVOY

Energy & environment reporter.

RELATED ARTICLES:

EXCLUSIVE: House Republicans Urge EPA To End ‘Completely Arbitrary’ Regulations On Small Fuel Refiners

Speculative climate chaos v. indisputable fossil fuel benefits

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.

Secret Back Channel Between FTX and White House Closed the Day After FTX Filed for Bankruptcy thumbnail

Secret Back Channel Between FTX and White House Closed the Day After FTX Filed for Bankruptcy

By The Geller Report

What was the big guy’s cut?

The level of criminality and depravity in this administration is only matched by its contempt for the American people and the idea of a nation of laws. No wonder they are treating this degenerate crook like a prince. Do we have any law and order left in this country?

Secret Back Channel Between FTX and White House Closed the Day After FTX Filed for Bankruptcy

By: Jim  Hoft, TPG, December 24, 2022:

The far-left Washington Post reported on March 3 that Ukraine was dealing in crypto.

The Ukrainian government has gathered more than $42 million in cryptocurrency donations since Saturday, plus digital artwork including a limited edition worth roughly $200,000, according to blockchain analytics firm Elliptic. The challenge is how the country cashes in on these assets to fund its war needs.

Amid the Russian invasion of Ukraine, the CEO of FTX, Sam Bankman Fried has come forward to help a crypto donation project. He humbly announced that FTX will be supporting the Ukrainian Ministry of Finance and other communities in collecting crypto donations for the country. The Ukrainian government has received over $60 million in crypto donations from all over the world.

FTX’s CEO, Sam Bankman Fried highlighted that the war in Ukraine has been dragging on. The country is in full need of humanitarian help and access to global financial infrastructure. He also called attention to sanctions and crypto during this kind of situation. He indicated that crypto exchanges should enforce sanctions announced by the government seriously.

Keep reading…..

AUTHOR

Pamela Geller

RELATED ARTICLE: Biden’s Taliban: ‘A Woman Is a Man’s Property and Must Serve Him, Not Get Educated’

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

California Appeals Court Upholds Injunctions against Corporate Board Quotas thumbnail

California Appeals Court Upholds Injunctions against Corporate Board Quotas

By Judicial Watch

This is an important victory for Judicial Watch, as well as taxpayers and stockholders.

The California Court of Appeal has upheld two injunctions against California quota requirements for corporate boards.

Earlier this year, two California trial courts had found (here and here) state quota mandates for sex, race, ethnicity, and LGBT status unconstitutional. On December 1, 2022, the California Court of Appeal denied (here and here) two separate emergency requests by the California Secretary of State to lift the injunctions.

The California courts again have upheld the core American value of equal protection under the law. Our taxpayer clients are heroes for standing up for civil rights against the Left’s pernicious efforts to undo anti-discrimination protections. Our legal team has helped protect the civil rights of every American with these successful lawsuits.

Here’s the background.

We filed a gender quota lawsuit in Los Angeles County Superior Court in 2019 on behalf of three California taxpayers. The lawsuit challenged a 2018 law, Senate Bill 826 (SB 826), which mandated that every publicly held corporation headquartered in California have at least one director “who self-identifies her gender as a woman” on its board of directors. We successfully argued that the quota for women on corporate boards violates the Equal Protection Clause of the California Constitution. In May 2022, after a 28-day trial, the Superior Court delivered its verdict finding that “S.B. 826’s goal was to achieve general equity or parity; its goal was not to boost California’s economy, not to improve opportunities for women in the workplace nor not to protect California taxpayers, public employees, pensions and retirees.”

In 2020, we filed a separate taxpayer lawsuit challenging Assembly Bill 979 (AB 979), which Governor Gavin Newsom signed into law on September 30, 2020. The bill mandated boards of directors of California-based, publicly held domestic or foreign corporations to satisfy racial, ethnicity, sexual preference and transgender status quotas.

Our lawsuit successfully asked the Superior Court to declare the diversity quota scheme unconstitutional under California’s equal protection guarantee and to permanently enjoin its enforcement. On April 1, 2022, the Superior Court issued a ruling and opinion striking down AB 979’s diversity quotas and granting a permanent injunction in favor of our taxpayer clients enjoining the state from implementing the statute.

EDITORS NOTE: This Judicial Watch update is republished with permission. ©All rights reserved.

All of the 60 Largest Metros Experience Declines in Home Prices in November as Longest Boom Ends thumbnail

All of the 60 Largest Metros Experience Declines in Home Prices in November as Longest Boom Ends

By Edward Pinto

National Home Price Appreciation (HPA) Index – November 2022

Key takeaways:

  • National YoY HPA for November 2022 averaged 6.7%, down from 8.5% a month ago and 16.7% a year ago.
  • Historically, HPA in the low price tier has outpaced HPA in the upper price tiers.
  • YoY HPA varied significantly among the 60 largest metros. It ranged from -5.8% in San Jose (negative 12.9% when inflation adjusted) to 17.8% in Miami.
  • National Month-over-Month (MoM) HPA in November was -0.9%, and it is expected to keep declining in December and January based on the Optimal Blue data.
    • The West and the high price tier are showing the greatest amount of cooling.
  • Months’ supply continues to be extremely tight across the nation and all price tiers. Months’ supply stood at 2.5 months in November 2022, down from the pre-pandemic level of 3.0 months in November 2019, but up from 2.1 months in October 2022 and a trough of 0.9 months in May 2022.
  • November 2022 overall inventory was up 47% from a year ago but was still at only half of the 2017-2019 levels.

Full Report

To view more data on HPA and months supply, please visit our interactive.

PDF to full report

AUTHORS

Tobias Peter

Research Fellow and Assistant Director, AEI Housing Center.

How Blackrock Investment Fund Triggered the Global Energy Crisis thumbnail

How Blackrock Investment Fund Triggered the Global Energy Crisis

By F. William Engdahl

Most people are bewildered by what is a global energy crisis, with prices for oil, gas and coal simultaneously soaring and even forcing closure of major industrial plants such as chemicals or aluminum or steel. The Biden Administration and EU have insisted that all is because of Putin and Russia’s military actions in Ukraine. This is not the case. The energy crisis is a long-planned strategy of western corporate and political circles to dismantle industrial economies in the name of a dystopian Green Agenda. That has its roots in the period years well before February 2022, when Russia launched its military action in Ukraine.

Blackrock pushes ESG

In January, 2020  on the eve of the economically and socially devastating covid lockdowns, the CEO of the world’s largest investment fund, Larry Fink of Blackrock, issued a letter to Wall Street colleagues and corporate CEOs on the future of investment flows. In the document, modestly titled “A Fundamental Reshaping of Finance”, Fink, who manages the world’s largest investment fund with some $7 trillion then under management, announced a radical departure for corporate investment. Money would “go green.” In his closely-followed 2020 letter Fink declared,

“In the near future – and sooner than most anticipate – there will be a significant re-allocation of capital…Climate risk is investment risk.” Further he stated, “Every government, company, and shareholder must confront climate change.” [i]

In a separate letter to Blackrock investor clients, Fink delivered the new agenda for capital investing. He declared that Blackrock will exit certain high-carbon investments such as coal, the largest source of electricity for the USA and many other countries. He added that Blackrock would screen new investment in oil, gas and coal to determine their adherence to the UN Agenda 2030 “sustainability.”

Fink made clear the world’s largest fund would begin to disinvest in oil, gas and coal.  “Over time,” Fink wrote, “companies and governments that do not respond to stakeholders and address sustainability risks will encounter growing skepticism from the markets, and in turn, a higher cost of capital.” He added that, “Climate change has become a defining factor in companies’ long-term prospects… we are on the edge of a fundamental reshaping of finance.” [ii]

From that point on the so-called ESG investing, penalizing CO2 emitting companies like ExxonMobil, has become all the fashion among hedge funds and Wall Street banks and investment funds including State Street and Vanguard. Such is the power of Blackrock. Fink was also able to get four new board members in ExxonMobil committed to end the company’s oil and gas business…..

*****

Continue reading at Global Research.

Rapid Factory Growth in Arizona Led by Record-Breaking Commerce Authority Effort thumbnail

Rapid Factory Growth in Arizona Led by Record-Breaking Commerce Authority Effort

By Carly Moran

Last week, two technology companies announced new factories in Arizona, leading to over 500,000 total private sector jobs created by the Arizona Commerce Authority under Gov. Doug Ducey.

These three factories are a part of over a dozen manufacturing companies that announced their expansion in Arizona this year. In total, over 15,000 manufacturing jobs have been created under the Ducey Administration’s ACA since January 2015.

“The Governor’s tenure has been transformational for our state,” said Sandra Watson, CEO of the Arizona Commerce Authority. “With his leadership, the right business environment, and a thriving innovation ecosystem, Arizona has become an international hub of advanced manufacturing, bringing new opportunities for small businesses and rural communities across our state.”

The ACA includes aerospace and defense, bioscience, technology and manufacturing as its targeted industries. The rapid factory development in Arizona is only a small piece of the state’s innovation at work.

One of the two companies that announced new locations in Arizona is the Taiwan Semiconductor Manufacturing Company, hoping to return semiconductor production to the United States. The business seeks to build two plants in Phoenix, one by 2024 and the other by 2026.

“When complete, TSMC Arizona aims to be the greenest semiconductor manufacturing facility in the United States producing the most advanced semiconductor process technology in the country, enabling next generation high-performance and low-power computing products for years to come,” said TSMC Chairman Dr. Mark Liu. “We are thankful for the continual collaboration that has brought us here and are pleased to work with our partners in the United States to serve as a base for semiconductor innovation.”

Production of the two facilities is estimated to create 10,000 tech jobs and employ an additional 10,000 construction workers. The project is a $40 billion investment in the Valley of the Sun, with an estimated 600,000 wafer per year output.

The American Battery Factory was the other company to push Arizona to create 500,000 jobs. The group has plans to build a $1.2 billion lithium ion factory in Tucson, with the goal of 1,000 jobs on-site.

“With this first factory, we will secure a strategically positioned company headquarters while taking the critical first steps in making it possible to one day move the country and the entire world to 100% renewable power,” said Paul Charles, CEO of ABF. “We are honored to start this journey in Tucson and give back to the community through innovation, quality job creation, revenue generation and environmental protection.”

The nearly 2 million square foot campus will be the largest gigafactory in lithium iron phosphate production and is the first to break ground in a series of ABF locations nationwide.

“When we took office, our economy was broken, and fixing it was a top priority,” said Governor Ducey. “The engine of our economic growth has always been our people. Today, Arizonans have access to abundant jobs as well as the opportunity to work in good-paying industries with the potential for advancement. With this kind of momentum and our incredible talent, Arizona is unstoppable.”

*****

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

U.S. Media Outlet Has Extensive Partnerships, Financial Dealings With Orgs Tied To Chinese Communist Party Influence Operations thumbnail

U.S. Media Outlet Has Extensive Partnerships, Financial Dealings With Orgs Tied To Chinese Communist Party Influence Operations

By The Daily Caller

  • Approximately 20 organizations that may be headed by members of the Chinese Communist Party (CCP) or members of alleged Chinese influence operations have sponsored or partnered with The China Project (TCP), a China-focused New York media outlet, the Daily Caller News Foundation determined.
  • TCP recently denied working for or with the CCP after a former employee sent an Oct. 21 declaration to the Department of Justice and Congress accusing the outlet of harboring a pro-CCP bias. 
  • “We must help defend our fellow citizens and lawful permanent residents from pressure — and in many cases, transnational repression up to and including assassination attempts — by the Chinese Communist Party,” New Jersey Republican Rep. Chris Smith told the DCNF.

The China Project (TCP), a New York-based media outlet renowned for its China reporting, has had professional and financial ties with organizations that may have been headed by members of the Chinese Communist Party (CCP) or members of alleged Chinese influence operations, a Daily Caller News Foundation investigation found.

Over 20 organizations that may have been led by such individuals have apparently partnered with or financially sponsored TCP, including the China-United States Exchange Foundation (CUSEF) and the Confucius Institute, the DCNF found. Both groups apparently began professional relationships with TCP after the U.S.-China Economic and Security Review Commission (USCC) identified them as CCP influence operations in 2018. Furthermore, the DCNF found that TCP’s “board director,” Clarence Kwan, may have been simultaneously serving as a director of an alleged CCP front group at the time he joined TCP’s board and provided initial equity in the company.

Kwan did not respond to the DCNF’s request for comment.

These revelations come over a month after journalist Shannon Van Sant, a former TCP business editor, delivered a sworn declaration to Congress and the Department of Justice (DOJ) on Oct. 21, alleging TCP fired her in June 2020 for being out of “alignment” with the organization’s alleged pro-CCP bias.

Van Sant’s declaration also stated that after being fired she “conducted open source research and found links between the organization and China’s Communist Party,” however, Van Sant’s declaration did not provide any documentation to substantiate her claim.

“It is important to me to provide transparency and shed light on my experiences,” Van Sant’s declaration stated. “That is why I am doing this disclosure.”

Florida Republican Sen. Marco Rubio and New Jersey Republican Rep. Chris Smith — both of whom sit on the Congressional-Executive Commission on China — recently told Semafor that TCP “should be forced to register” under the Foreign Agents Registration Act (FARA), which requires the disclosure of service to foreign entities.

In response, TCP’s attorneys at Boies Schiller Flexner sent a 12-page letter to Semafor on Oct. 31, demanding Semafor retract their piece on Van Sant’s allegations. TCP’s attorneys allege Van Sant had been fired for “poor work performance” and had “an axe to grind.”

“Nothing in Ms. Van Sant’s ‘sworn declaration’ comes close to providing evidence, direct or circumstantial, that TCP is working for or has worked for the Chinese government,” Boies Schiller Flexner wrote to Semafor.

Neither TCP nor their attorneys at Boies Schiller Flexner responded to multiple requests for comment from the DCNF. Van Sant declined the DCNF’s request for comment through her representatives at Whistleblower Aid.

‘A Jewel In The Crown Of China Reporting’

TCP — which until September was known as “SupChina” — is a multimedia group that claims to reach “more than two million people per month” through a variety of platforms including news articles and podcasts. Former Ambassador to China Max Baucus — who recently came under fire for Nov. 11 and 12 meetings with alleged Chinese influence operatives — called TCP “a jewel in the crown of China reporting,” according to the outlet’s website.

The multimedia outlet also runs a nonprofit arm, Serica, which seeks “to educate and cultivate empathy around the issues of Sinophobia and anti-Asian hate,” according to its website. TCP also maintains a “United States Sinophobia Tracker” that’s collected numerous articles on CCP espionage allegations, such as a 2020 NBC News piece about the growing number of FBI counterintelligence cases, which TCP tags on its website as “paranoid rhetoric.”

TCP has also published articles and podcasts critical of the DOJ’s China Initiative — an anti-espionage program launched during the Trump administration which was ultimately terminated in February 2022 after the “civil rights community” expressed concern that the program had “fueled a narrative of intolerance and bias,” Assistant Attorney General Matthew Olsen said at the time.

China’s United Front

In her declaration to the federal government, Van Sant claims to have discovered links between TCP and the China Overseas Exchange Association (COEA), an organization which billed itself as an “important platform and bridge for people-to-people exchanges,” according to an archived version of COEA’s website.

China intelligence analyst and former senior analyst at the Canberra-based Australian Strategic Policy Institute Alex Joske identified COEA as a “key” United Front Work Department (UFWD) front group that merged with the China Overseas Friendship Association (COFA) in 2019 — an organization which USCC also identified as a UFWD front group.

Joske is the author of “Spies and Lies: How China’s Greatest Covert Operations Fooled the World” published in October 2022, which was well-received by the international press.

The UFWD is a Chinese government agency, which oversees CCP influence operations and reports directly to the CCP’s Central Committee, according to USCC. General Secretary Xi Jinping has repeatedly emphasized the importance of the UFWD. He even described the agency as the CCP’s “magic weapon” for “realizing the great rejuvenation of the Chinese nation” in a 2015 speech.

“The UFWD is essentially an intelligence agency of the CCP tasked with infiltrating different communities and organizations, co-opting and influencing them,” Salih Hudayar, Uyghur prime minister of the East Turkistan Government in Exile, told the DCNF.

While TCP’s attorneys conceded in their October letter to Semafor that Kwan formerly served as a COEA “director,” they claim his involvement with the group “was limited to participating in two trips to China in 2013 and 2014.” TCP’s attorneys also claimed Kwan’s COEA tenure preceded his joining TCP’s board and his providing nearly 2% of the outlet’s initial equity.

Yet, the DCNF discovered that archived versions of COEA’s website — which was deleted after the organization merged with COFA around 2019 — list Kwan as a “director” for two consecutive four-year terms running from 2013-2017 and 2017-2021. This appears to indicate that Kwan’s time at COEA overlapped with his $150,000 purchase of SupChina First Notes in September 2016, according to Security and Exchange Commission filings. Likewise, this indicates Kwan may have been serving as COEA’s director when he assumed the role of “director” of SupChina — now called TCP — in May 2017.

Kwan is currently listed as an “advisory board member” on TCP’s website.

Additionally, Kwan appears to have also held leadership positions in several companies that have financially sponsored TCP, including KCY Family OfficeEast West Bank and Piermont Bank, the DCNF found.

The Committee Of 100

TCP also appears to have partnered with, and donated $25,000 to, a New York-based organization called the Committee of 100 (C100) — a nonprofit that claims to seek “constructive dialogue and relationships between the peoples of the United States and Greater China.”

Yet, C100 members appear to have included Chinese government advisers and 10 COEA directors, including Kwan, who, based on the committee’s website, may have served as C100’s chairman while simultaneously serving as COEA’s director.

Moreover, in addition to TCP’s founder, Anla Cheng — a hedge fund manager by trade, who apparently is also a trustee and former C100 director — seven of TCP’s 23 advisory board members appear to belong to C100, including John LongS. Alice MongFrank WuLi ChengTed WangJanet Yang and Lesley Ma.

TCP’s attorneys accused Semafor’s article of relying on “racial profiling and stereotypes” by citing a C100 report which claimed “Asian defendants are more than twice as likely to be falsely accused of espionage” without acknowledging any financial or personnel ties between the two organizations.

C100 did not respond to multiple requests for comment.

‘CCP Agents Often Target The Chinese Diaspora’

Van Sant also claims in her 11-page declaration that the China Association for Science and Technology (CAST) told TCP’s founder, Cheng, in June 2020 about a Chinese scientist whom the U.S. government had charged with espionage, prompting Cheng to direct staff to “protect him.”

CAST is a unit of the Chinese People’s Political Consultative Conference (CPPCC), which oversees the UFWD, according to USCC. The CPPCC “operates as a way for the CCP to falsely claim that it represents the full breadth of Chinese society,” according to a 2020 report written by Joske, the intel analyst.

“In practice, those organizations are controlled by the CCP,” Joske wrote. “Their leaders are often party members, and, historically, some have been manipulated through inducement and coercion, including blackmail.”

Although TCP’s attorneys did not deny Van Sant’s allegation in their letter to Semafor, they claimed that “protecting a ‘wrongly investigated’ Chinese scientist” did not amount to “evidence of espionage.”

Yet, TCP listed CAST as a “partner organization” on flyers from a 2022 “Women’s Conference,” the DCNF found.

Furthermore, TCP appears to have partnered with around 10 organizations that may be led by members of the CCP or alleged UFWD fronts, the DCNF found. For example, the “About Us” tab on CAST’s website includes a section on “Leading Party Members” and features CAST’s Party Secretary Zhang Yuzhuo and five other Communist Party members.

Likewise, TCP partnered with another organization called NYO China for its 2019 “Women’s Conference.” NYO China appears to be headed by He Meivice chairman of the Center for China and Globalization (CCG), which was identified by USCC as a UFWD front back in 2018.

The year before the State Department designated the Confucius Institute as a UFWD “foreign mission” in 2020, TCP also partnered with the Chinese government-run propaganda center to host an event on “China’s Food Revolution.” Li Changchun, former CCP propaganda chief, once called Confucius Institutes “an important part of China’s overseas propaganda setup,” according to the State Department.

“Confucius Institutes are the United Front’s most well-known overseas outreach program,” Helen Raleigh, author of “Backlash: How China’s Aggression Has Backfired,” told the DCNF.

“Confucius Institutes have been noted to present students with only the CCP-sanctioned version of Chinese history, which omits the CCP’s human rights violations, and Chinese teachers at Confucius Institutes are all thoroughly vetted by Beijing,” Raleigh said.

In total, about 10 organizations that appear to have been headed by CCP members or alleged UFWD front members financially sponsored TCP, the DCNF determined. These organizations paid as much as $50,000 to sponsor events hosted by the multimedia outlet, according to various flyers.

Youhe Invest — whose website identifies its chairman Su Jie as a member of the CCP and CPPCC — is listed on TCP’s website as a sponsor of past events. Likewise, the China-United States Exchange Foundation (CUSEF) sponsored a TCP screening of a documentary on “the history and evolution of Afro-Chinese relations in America” in 2021.

CUSEF is a Hong Kong-based nonprofit registered under the Foreign Agents Registration Act that is involved in UFWD “influence operations,” according to USCC.

Several companies run by individuals from CUSEF’s leadership have also sponsored TCP, such as Wisdom Valley — whose founding director, Victor Fung, is listed as CUSEF’s vice chairman — and Value Partners — whose co-chairman, Cheah Cheng Hye, is one of CUSEF’s “counsellors.”

Rep. Smith told the DCNF that once Republicans take control of the House it will become a priority to investigate Chinese influence operations.

“Beyond national security concerns, we know that CCP agents often target the Chinese diaspora in the United States,” Smith said. “We must help defend our fellow citizens and lawful permanent residents from pressure — and in many cases, transnational repression up to and including assassination attempts — by the Chinese Communist Party.”

AUTHOR

PHILIP LENCZYCKI

Investigative reporter.

RELATED ARTICLE: EXCLUSIVE: CIA Director’s Former Think Tank Hired Experts From Nonprofits Controlled By Chinese Spy Agencies

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.

Prevalence of GSE Appraisal Waivers thumbnail

Prevalence of GSE Appraisal Waivers

By Edward Pinto

This report tracks trends for GSE appraisal waivers monthly and provides data on the risk characteristics of these loans.

To download the most recent data, please click here.

To read our comment letter to FHFA on appraisal-related policies, practices, and processes, please click here.

PDF to most recent report

Slide deck on GSE Appraisal Waiver Report

AUTHORS

Edward J. Pinto

Senior Fellow and Director, AEI Housing Center

Tobias Peter

Research Fellow and Assistant Director, AEI Housing Center

Previous Reports

Origination Month Analyzed
October 2022
September 2022
August 2022
June 2022
May 2022
March 2022
February 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
March 2021
February 2021
January 2021
November 2020
October 2020
September 2020
August 2020
July 2020
May 2020

EDITORS NOTE: This American Enterprise Institute report is republished with permission. ©All rights reserved.

Biden Claimed He Created 1 Million Jobs. Actual Number, 10,500 thumbnail

Biden Claimed He Created 1 Million Jobs. Actual Number, 10,500

By Jihad Watch

Come on, man. What’s a little rounding error between friends?


What’s a little rounding error between a corrupt hack and the country he’s running into the ground?

“In the second quarter of this year, we created more jobs than in any quarter under any of my predecessors in the nearly 40 years before the pandemic,” Mr. Biden said on July 8.

“The economy created more than 1.1 million jobs in the second quarter, or around 375k jobs per month,” the White House said in a statement on July 22.

A million or ten thousand. Come on, man. Who’s keeping track?

The Philadelphia Fed’s new assessment shows that employment numbers in 29 states and the District of Columbia were significantly lower than the Bureau of Labor Statistics reported for the March-through-June period.

The BLS, a division of the Department of Labor, estimated net job growth of 1,047,000 jobs in the second quarter. The Philadelphia Fed now says its data shows that 10,500 net jobs were created in that period.

Another reminder that anything from BLS or anything under the control of administration political appointees cannot be trusted. The Biden administration is actually worse than the Obama administration in this regard. Everything is corruptly politicized and appointees will flat-out tell the most outrageous lies.

Not that this comes as a surprise even to the media. How many times has this happened already?

Biden’s bogus boast of 1 million ‘construction jobs’ – Four Pinocchios – Washington Post

AP FACT CHECK: Biden’s fuzzy math on 1 million new auto jobs

Biden will still keep on lying anyway.

AUTHOR

DANIEL GREENFIELD

RELATED ARTICLES:

Sen. Sherrod Brown (D-Open Borders): Only the ‘far right’ care about immigration

India: Muslim kills his daughter for constantly talking on the phone

Spain: Muslim migrant takes a hammer to a Nativity display

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

Philadelphia Fed: Job Gains This Year OVERSTATED by 1.1 Million, It Was Only 10K thumbnail

Philadelphia Fed: Job Gains This Year OVERSTATED by 1.1 Million, It Was Only 10K

By The Geller Report

In the aggregate, 10,500 net new jobs were added during the period rather than the 1,121,500 jobs estimated by the sum of the states; the U.S. CES estimated net growth of 1,047,000 jobs for the period.


Anyone who believes anything coming out of government agencies is not just gullible, they’re a danger to themselves (and invariably all of us).

Have you wondered how everyone is broke, yet somehow the Biden economy is on fire, creating all these jobs? Turns out, that was all a massive lie, the Philadelphia Federal Reserve admits. (What totally convenient post-election timing!) https://t.co/r0pQaoiOLg

— Tara Servatius (@TaraServatius) December 16, 2022

Job Gains This Year Overstated by 1.1 Million, Philadelphia Fed Reveals

By Andrew Moran, The Epoch Times, December 16, 2022:

Labor data might have been overcounted by as much as 1.1 million jobs earlier this year, the Federal Reserve Bank of Philadelphia revealed in a new quarterly report.

According to the regional central bank’s second-quarter “Early Benchmark Revisions of State Payroll Employment” report (pdf), researchers’ estimated employment changes that occurred between March and June were different in 33 states and the District of Columbia compared to the data published by the Bureau of Labor Statistics (BLS).

During this period, Philadelphia Fed researchers found that there were higher adjustments in four states, lower changes in 29 states and the nation’s capital, and lesser revisions in the remaining 17 states. This included a 4.1 percent drop in payroll employment in Delaware and a 1.2 percent decrease in jobs in New Jersey.

As a result, employment gains might have been overcounted by more than 1.1 million.

“In the aggregate, 10,500 net new jobs were added during the period rather than the 1,121,500 jobs estimated by the sum of the states; the U.S. CES [Current Employment Survey] estimated net growth of 1,047,000 jobs for the period,” the report stated.

This also means that payroll jobs were flat in the March-to-June span. In addition, current estimates indicate that employment growth was 2.8 percent in the four months since June.

E.J. Antoni, a research fellow for Regional Economics in the Center for Data Analysis at The Heritage Foundation, tells The Epoch Times that this “feels like another pyrrhic victory.”

“The Philly Fed data aligns well with the household survey that shows a flat job market since March, contra the robust growth from the establishment survey,” he said. “The seasonal adjustments to the monthly headline jobs numbers this year from BLS have been abnormally large to the upside. December’s number will have to revised down 30% more than normal to essentially balance out the earlier large upward revisions. Job growth was technically ‘front loaded’ in 2022.”

The Philadelphia Fed explained how its calculations differ from how the BLS crunches the figures.

“The Federal Reserve Bank of Philadelphia has developed early benchmark estimates of monthly state payroll employment on a quarterly basis to predict the subsequent annual benchmark revisions by the Bureau of Labor Statistics (BLS). Our process enhances the monthly Current Employment Survey (CES) payroll employment data with the more comprehensive Quarterly Census of Employment and Wages (QCEW) payroll employment data. The CES provides a timely estimate of monthly state employment data, but the QCEW follows about five months later with a more complete picture, covering more than 95 percent of all employers. Our methodology was adapted from an approach pioneered by the Federal Reserve Bank of Dallas and modified to accommodate all 50 states and the District of Columbia,” the regional central bank noted in its methodology explainer (pdf).

Will this force the BLS to revise its figures lower in the coming months?

BLS Caught Overcounting

Critics have charged that there is something wrong with the monthly jobs report.

The BLS report is comprised of two chief surveys: establishment (businesses) and household. The former has recorded stronger-than-expected growth for most of 2022, while the latter has been roughly flat. Since March, the divergence has skyrocketed to 2.7 million workers.

The main explanation for this gap is that the BLS allows double counting. This means it will count every extra job a person possesses as another payroll. The household component does not permit this feature.

AUTHOR

Pamela Geller

RELATED ARTICLE: Lame-Duck Congress Pushes Omnibus Spending Disaster – $ 1.65 TRILLION

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

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Is Thomas Sowell one of the most important thinkers of our time?

By MercatorNet – Navigating Modern Complexities

‘Maverick’ is an outstanding intellectual biography of this prolific African-American economist.


Fans of Thomas Sowell have been eagerly awaiting the new biography by Jason Riley, with the appetite being whetted by the release of Riley’s one hour documentary on Sowell’s life in January.

This is not a standard biography.

Apart from providing a basic overview of Sowell’s life (his difficult upbringing in the segregated South and in Harlem, his late entry into academic life and meteoric rise as a public commentator), the author’s primary goal is to provide an introduction to Sowell’s voluminous body of work on matters as diverse as economics, education, cultural disparities and political ideology.

Like Sowell, Riley is a conservative African-American writer. A member of The Wall Street Journal editorial board, he is critical of the statist measures (expanded government, racial quotas, etc.) which many leftists advocate, arguing that they hurt blacks instead of helping them.

Four decades Riley’s senior, Sowell has a long track record of making similar arguments. Interestingly though, he initially held very different views.

A Marxist radical from a young age, Sowell overcame the burdens of being a school dropout and worked his way to a Harvard economics degree.

Finding that “smug assumptions were too often treated as substitutes for evidence or logic” among the Harvard elite, Sowell’s years of working within the government bureaucracy gradually led him to believe that it was not helping minorities: as shown by his fellow bureaucrats’ disinterest in evidence demonstrating that the higher minimum wage laws they advocated were increasing unemployment among disadvantaged groups.

One of the highlights of “Maverick” is Riley’s description of Sowell’s difficulties as a teaching professor in the 1960s and 1970s, prior to his appointment as a Senior Fellow in the Hoover Institution in 1980s, after which Sowell was able to concentrate on research and writing.

As someone who had been raised in a poor and uneducated family, Sowell understood the importance of education and was particularly eager to help educate other African-Americans.

Despite receiving offers of teaching positions at more prestigious colleges, Sowell decided to return to his original alma mater, the predominantly black Howard University.

His refusal to accept laziness or declining academic standards among his students caused him problems here and in other colleges at a time when American colleges were at the epicentre of a cultural revolution.

“Curricula were being reworked to accommodate ideological fashions. Race and gender and class were becoming preoccupations in student scholarship and faculty tenure decisions. And the notion that education must be “relevant” to the students – especially to minority students from different backgrounds – was ascendant,” Riley writes, and Sowell found it hard to adapt.

In addition to being something of a cultural anomaly for trying to uphold traditional standards, Sowell also refused to go along with politically correct social policies which he saw were not working.

While teaching at the prestigious Cornell University, Sowell observed that the college’s policy of admitting black students who did not meet their usual academic standards in the name of diversity was resulting in gifted students (who may have thrived elsewhere) struggling in their classes.

Though he appears to have initially been reluctant to engage on questions pertaining to race such as this, Sowell’s insistence on examining the facts and his willingness to criticise progressive ideology earned him the animosity of many in the black establishment.

This was often expressed in vicious ways: when it was rumoured that President Reagan would appoint Sowell to his cabinet, a leading NAACP (National Association for the Advancement of Colored People) official publicly compared him to the “house n*****s” of the plantation era.

A key criticism which Sowell levelled against so-called “leaders” of black America was their overemphasis on achieving political power (often sought for their own benefit) while members of their community suffered due to the breakdown of the traditional family and the poor-quality public services which those same political leaders were responsible for.

In a number of books on related topics – his titles included Ethnic AmericaRace and CultureConquests and Cultures and Affirmative Action Around the World — Sowell shone a light on how educational and income disparities came to exist between different groups, and how politically successful minorities (like Irish-Americans, who dominated America’s big cities as well as the hierarchy of the Catholic Church) sometimes lagged behind others in material terms while politically marginalised groups like the (Chinese diaspora in southeast Asia or the Jews of America) thrived economically and educationally.

Unsurprisingly, this did not endear him to politicians and activists who owed their positions and incomes to maintaining the view that income disparities were always the result of discrimination, which they of course maintained could only be addressed by political action.

Though Sowell’s courage and insights when it comes to issues of race are more necessary now than ever, his career offered so much more, as Riley makes clear here.

As an economist, Sowell earned the admiration of laymen with valuable and accessible books such as Basic Economics, while winning praise from other leading economists for more advanced materials such as Knowledge and Decisions.

Elsewhere, his informal trilogy about the history of ideas — A Conflict of Visions, The Vision of the Anointed and The Quest for Cosmic Justice – has helped to explain the differences in political psychology between Right and Left.

Sowell’s life has imbued in him a toughness which made him well-suited to the role he has played, one which has come at a cost.

“Sometimes it seems as if I have spent the first half of my life refusing to let white people define me and the second half refusing to let black people define me,” Sowell has reflected. Now in his 90s, he will probably never receive the recognition, which he richly deserves, as one of the world’s great intellectuals.

Throughout this excellent biography, Jason Riley provides an outstanding introduction to a truly great man whose work should continue to inspire us.

This content is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International license.

AUTHOR

James Bradshaw

James Bradshaw writes on topics including history, culture, film and literature. More by James Bradshaw

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

Why Business Should Dispense with ESG thumbnail

Why Business Should Dispense with ESG

By Samuel Gregg

“Milton Friedman’s shareholder doctrine is dead.” Such was the headline of a 2020 Fortune magazine article critiquing Friedman’s famous New York Times opinion piece which, fifty years earlier, had argued that the social responsibility of business is to increase its profits.

The Fortune article was just one of many op-eds, academic papers, and books penned over the past 52 years disputing Friedman’s thesis. Their authors haven’t been shy about proposing alternative models. One approach that has achieved prominence is the stakeholder theory of business, which has swiftly embraced Environmental, Social, and Governance (popularly known by its acronym, ESG) criteria as a means to realize its objectives.

By stakeholder theory, I am not referring to the practice of businesses prudentially assessing their surrounding economic, political, and social environment to identify those constituencies (“stakeholders”) with whom any company must work if it is to realize profit. Commercial enterprises have been doing this for centuries. Nor am I thinking of the need for businesses to reflect upon what economists call externalities—i.e., the costs or benefits incurred by one or more third parties because of a company’s activities. This too is an area that business executives have long understood as something to which they must pay attention to continue operating.

Rather, I have in mind those theories which maintain that the purpose of business goes far beyond profit and maximizing shareholder value. Expansive or pluralistic stakeholder theory, according to Harvard Law School scholars Lucian Bebchuk and Roberto Tallarita, “posits that the welfare of each stakeholder group has independent value, and consideration for stakeholders might entail providing them with some benefits at the expense of shareholders.”

But how do we assess whether a business is promoting its various stakeholders’ well-being? This is where the contemporary emphasis on ESG comes into the picture. It is, alas, also where many subsequent problems for business and society more broadly begin.

Welcome to ESG

ESG is big business. Today numerous ESG-designated funds are operated by investment giants like BlackRock. Scarcely a month goes by without global management consulting firms like McKinsey & Company publishing articles urging companies to make ESG “real.” Major financial advisory services counsel clients on how to invest according to ESG guidelines, while ESG reporting and ratings providers assess companies’ ESG performance on behalf of institutional investors.

In its essence, ESG is a framework that purports to help investors and those claiming stakeholder status understand how well companies are contributing to the realization of goals over and above profit. On the basis of pre-determined environmental, social, and governance standards, ESG promoters claim that investors, stakeholders, and CEOs can discern whether companies are sufficiently dedicated to managing specific externalities like their environmental impact or to integrating particular commitments, such as diversity, into their structures and practices.

What, some might ask, is wrong with this? Who could object to encouraging companies to promote particular values and stakeholders’ interests as they pursue profit? For many people, the claim that you can contribute to any number of good causes while simultaneously making money is an attractive proposition.

The decisions of companies and people’s investment choices certainly have moral dimensions. At a minimum, such choices involve a refusal to choose evil or to formally cooperate with other peoples’ evil.

One of ESG’s many difficulties, however, is that its goals and methods are characterized by an incoherence sufficient to call into question not just specific features of ESG but the conceptual integrity of the entire ESG endeavor. Another ESG problem is its tendency to blur ethics and sound business practices with the promotion of particular political causes. This mindset has spilled over into the outlook of financial regulators, and consequently threatens to facilitate widespread dysfunctionality in these agencies’ operations. Lastly, the adoption of ESG risks corroding understanding of the nature and proper ends of commercial enterprises—a development that has broader and negative implications for society as a whole.

A Failure in Ends and Means

Let’s begin by asking a very basic question: does ESG operate in the way that it claims to? Recent academic analyses of this topic have raised major doubts about this. In their Review of Accounting paper “Do ESG Funds Make Stakeholder-Friendly Investments?” for example, Aneesh Raghunandan and Shivaram Rajgopal asked whether “ESG mutual funds actually invest in firms that have stakeholder-friendly track records?”

Based on a large sampling of Morningstar-identified American ESG mutual funds from 2010 to 2018, Raghunandan and Rajgopal determined “that these funds hold portfolio firms with worse track records for compliance with labor and environmental laws, relative to portfolio firms held by non-ESG funds managed by the same financial institutions in the same years.” As if that is not enough, Raghunandan and Rajgopal conclude that “ESG funds appear to underperform financially relative to other funds within the same asset manager and year, and to charge higher fees.” In short, not only have such funds failed to deliver on many of their ESG goals; they also cost more and provide less by way of financial return.

A similar picture of ineffectiveness emerges when we take a closer look at the composition of ESG funds. In his analysis of the makeup of ESG funds managed by some major investment houses, the Wall Street Journal’s Andy Kessler found that their composition differed only marginally from non-ESG-labeled funds. He discovered, for instance, that BlackRock’s ESG Aware MSCI USA EFT had “almost the same top holdings as its S&P 500 EFT.” Nevertheless, Kessler noted, the ESG-labelled fund cost 5 times more by way of fees. If this was the subtext to Elon Musk’s tweet proclaiming that ESG “is a scam,” he may have had a point.

Another complication involves the stability of the issues that preoccupy ESG investment vehicles. The areas covered by ESG are numerous and fluctuating. Once upon a time, the focus was on products like tobacco. Then climate change became popular, thereby making fossil-fuel industries a major target of ESG ire. More recently, ESG has embraced the universal prominence given to diversity, equity, and inclusiveness.

These ongoing shifts in emphases have generated substantial disparities and disagreement within and between ESG ratings providers about, among other things, what counts as ESG and what doesn’t; how to measure ESG compliance; and how much weight should be assigned to a particular ESG goal (e.g., protect the environment) vis-à-vis other ESG objectives (e.g., promote diversity). In a May 2022 Review of Finance article surveying these methodological and measurement issues, Florian Berg, Julian F. Kölbel, and Roberto Rigobon found that ESG scores across six of the most prominent ESG ratings providers correlated on average only by 54 percent. You don’t need a degree in statistics to recognize that such a low number indicates significant disagreements about which measures and goals really matter. In an earlier 2021 article, Berg, Kornelia Fabisik, and Zacharias Sautner presented evidence of unexplained and undocumented retrospective alterations to the data on which ESG scores were based. Data alterations are not unusual. Not explaining the reasons for the alteration, however, is.

Some major ESG supporters have conceded that this lack of agreement and consistency concerning ESG’s content and measurement methods raises questions about ESG’s credibility. This is not simply because it creates difficulties for assessing ESG compliance across industries and economies. If the content of ESG is 1) unstable or effectively amounts to whatever you want it to be or whatever happens to be the cause célèbre at a given moment, and 2) there’s no universally agreed-upon measure of success, then whatever claim ESG has to coherence and universal applicability starts to look very thin indeed.

This has real consequences for some important topics that investors tend to care about—such as executive compensation. If ESG is to become part of the way that a firm assesses board, CEO, and senior management performance, then coherent and agreed-upon ESG criteria are necessary. Yet in their analysis of ESG-related executive compensation, Bebchuk and Tallarita found that ESG-based compensation disclosures generally offer “vague and underspecified goals, such as increasing sustainability, diversity, inclusion, or employee well-being, without any specific targets or additional information.”

Such imprecision suggests that ESG is unhelpful as a tool for assessing management compensation. Worse, it could potentially be used to diminish executive accountability for profit-performance. It is not a stretch to imagine how executives could appeal to their higher ESG responsibilities to justify lower returns to investors. Nor is it hard to see companies using these broad ESG commitments to curry favor with political leaders who prioritize specific causes. This would only exacerbate the already widespread problem of cronyism and help shift executive incentives further away from creating economic value and towards rent-seeking.

Internal Incoherence and Politicization

Even when a particular issue receives strong affirmation throughout the ESG world, other problems soon become apparent. Consider, for instance, ESG’s present focus on diversity, equity, and inclusiveness in things like the makeup of company boards and management. In ESG literature, diversity, equity, and inclusiveness are treated as self-evident, virtually unquestionable values. A moment’s reflection, however, soon illustrates the perils of this outlook.

Inclusion, for instance, suggests that there is something inherently problematic with exclusion. Certainly, there are unjust forms of exclusion. It is wrong to exclude someone from being considered for employment simply because she is, say, of Asian ethnicity. Yet it is not wrong to exclude an Asian woman from a board position if she lacks the formal qualifications or requisite experience; or has a track record of bad business judgments; or has been exposed in the past as dishonest.

In other words, there are just grounds on which we rightly exclude people, whatever their sex or skin color, from being given particular responsibilities. Prioritizing inclusivity is thus not as unquestionable as ESG marketing pitches often suggest. Treating it as such is likely to lead to seriously mistaken personnel decisions. At present, it is hard to find ESG schemes that acknowledge such common-sense limits to their conception of inclusion.

Or take ESG’s stress on diversity. ESG materials do not present diversity as a species of pluralism, understood as individuals, associations, and communities in a given society living out their freedoms in different ways while being bound together by some common commitments and obligations. Nor is it about promoting individuality. Instead, diversity reflects the idea that, as Peter Wood relates in Diversity: The Invention of a Concept, everyone is defined by membership in social groups and is largely the product of such groups’ collective experiences. That draws attention away from two things: first, our common human nature and the essential equality of all humans qua humans derived from that; and second, the idea that all of us are as much individuals as we are social beings and thus shouldn’t be boxed into particular unchanging and unchangeable categories, whether by custom or law.

These problems surrounding ESG’s present focus on inclusion and diversity point to another difficulty. This is the hard-to-deny fact that many ESG concerns have taken on a political slant—one that aligns closely with what would be conventionally called progressive priorities—and are being used by governments and regulators to advance such goals in questionable ways. In 2021, the Biden Administration announced its intention of imposing new ESG disclosure requirements on publicly traded companies. Upon examining the requirements in question, the legal scholar Todd Zywicki found that “the disclosures advance left‐​wing causes such as environmentalism and race, sex, and sexuality ‘diversity’ initiatives, not issues such as the rule of law, economic development, or affordable energy policy.”

ESG is also being used to shape how regulators expect corporations to address the political pressures to which they are inevitably subject. In his book The Dictatorship of Woke Capital, Stephen Soukup observes that under Securities and Exchanges Commission (SEC) rules, publicly-traded companies are allowed to exclude certain shareholder proposals if they receive permission to do so from the SEC. In 2019, Soukup writes, Apple asked the SEC to prohibit shareholders from voting on two propositions. One involved the promotion of intellectual diversity. The second focused on enhancing racial diversity. The SEC agreed that the intellectual diversity proposal would not appear on the shareholder ballot but allowed the racial diversity proposition to go ahead.

In short, racial differences were deemed more important by SEC officials than disparities in ideas. That is entirely consistent with ESG’s progressive slant—not to mention the SEC’s stated commitment to promoting diversity and inclusion within its own ranks, which, judging from the SEC Employee Affinity groups listed in the SEC’s Diversity and Inclusion Strategic plan, is overwhelming about ethnicity and sex rather than, say, religious or political affiliation…..

*****

Continue reading this article at Law & Liberty.

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Arizona Ballot Proposition Roundup

By Cameron Arcand

The Arizona-based Common Sense Institute released its 2022 Initiative Results & Free Enterprise Analysis report on Thursday, which analyzed how the proposition that voters approved will impact the economy.

Its report looked at four propositions, including Prop. 130, which has to do with property taxes, Prop. 132, which requires a 60% approval by voters for new taxes that make it to the ballot, and Prop. 209, which limits how much medical debt can be collected. 

Regarding property taxes, the analysis found that the proposition “would have minimal new fiscal impact” but could save some money on both the public and government sides. On the flip side, the institute estimated that proposition 209 could put 1,500 jobs at risk and may even result in a $500 million annual decrease in the state’s GDP, and it could have “broad implications” for the consumer credit market in Arizona. They cautioned that this is “speculative” due to the vague nature of the proposition, which passed with 72% approval.

The fiscally conservative group also celebrated the passage of Proposition 132 and the failure of Proposition 310, which would have increased the sales tax for 20 years to fund fire districts.

They argued that 132 would act as a necessary buffer to prevent tax hikes passed by a narrow majority, as many tax proposals make it to the ballots because they require two-thirds approval in the state legislature.

On 310, the institute estimated that a 0.1 cent sales tax hike would have cost “average Arizona households” $52 a year, but it would have also cut the state GDP back by $7.4 billion over the course of the time the hike is in place. As the proposition did not make it through narrowly, it speaks to the point of how the new 60 percent margin on tax proposals will become more notable in future election cycles. 

*****

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

Most Americans Think Inflation Is Still Increasing and Believe Twitter Engaged in Political Censorship thumbnail

Most Americans Think Inflation Is Still Increasing and Believe Twitter Engaged in Political Censorship

By Dr. Rich Swier

NEW YORK and CAMBRIDGE, Mass.Dec. 16, 2022 /PRNewswire/ — Stagwell (NASDAQ: STGW) today released the results of the December Harvard CAPS / Harris Poll, a monthly collaboration between the Center for American Political Studies at Harvard (CAPS) and the Harris Poll and HarrisX.

Joe Biden’s approval rating remains steady at 42% as two-thirds of Americans think inflation is still increasing. Ron DeSantis continues his ascent as the poll shows him defeating Biden in a 2024 matchup for the first time.

Strong majorities of voters think Twitter shadowbanned users and engaged in political censorship during the 2020 election. Seventy percent also want new national laws protecting users from corporate censorship. Download key results from the poll, which includes more on free speech, immigration, and inflation, here.

“Americans continue to show they are looking for new leaders. Ron DeSantis strengthens his grip as the Republican alternative to Donald Trump, and Elon Musk is in some ways the new Trump as the outsider taking on the establishment,” said Mark Penn, Co-Director of the Harvard-CAPS Harris Poll and Stagwell Chairman and CEO. “Americans also want more information: they are buying the Musk argument that there is an information chokehold in this country, whether by Big Tech, government, or mainstream media.”

AMERICANS THINK INFLATION IS INCREASING AND WILL LINGER

  • 66% of voters think inflation is increasing, and 61% of voters think inflation will continue for at least another year.
  • But Americans see economic troubles easing slightly: the percentage of voters who think the economy is heading in the right track and who are optimistic about their lives next year both increased by 3 points.
  • Voters are split on whether Biden’s policies caused inflation.

IT’S NOW A TWO-WAY GOP RACE BETWEEN TRUMP AND DESANTIS

  • Trump is still the GOP frontrunner in an open field: 48% of GOP voters would choose him in a primary, compared to 25% for DeSantis.
  • But in a GOP head-to-head, DeSantis defeats Trump by 4 points if GOP-leaning Independent voters are included; Trump wins the head-to-head by 10 points among only GOP voters.
  • For the first time, the poll shows DeSantis defeating Biden in a 2024 matchup, by 4 points; Trump would also defeat Biden by 5 points.

VOTERS BELIEVE TWITTER ENGAGED IN POLITICAL CENSORSHIP AND ARE ROOTING FOR ELON MUSK

  • Americans believe in the Twitter Files revelations: 64% think Twitter was secretly shadow banning users, and 64% also think Twitter engaged in political censorship during the 2020 election.
  • Americans like Elon Musk: 61% think Musk is trying to clean up Twitter from abuses, and his personal favorability is 8 points above water.
  • The Hunter Biden laptop story continues to generate controversy: 61% of voters think Twitter’s decision to ban tweets about the laptop was based on political bias; but 42%, including a majority of Democrats, believe the laptop is Russian disinformation.
  • 70% of voters, including strong majorities across the political spectrum, support new national laws protecting internet users from corporate censorship.

AMERICANS THINK ILLEGAL IMMIGRATION IS A SERIOUS ISSUE BUT DON’T KNOW THE NUMBERS

  • Voters are concerned about the effects of Biden’s immigration policies: 67% think they have encouraged illegal immigration, and 57% think they are increasing the flow of drugs and crime.
  • Americans are unfamiliar with the extent of illegal immigration: 64% correctly said the number of illegal border crossings has increased under Biden, but the median voter underestimated that number by a factor of 10 (250-500 thousand vs. 2-3 million).
  • Two-thirds of Americans want Biden to issue stricter policies to reduce the flow of illegal immigrants, when told the actual number of illegal crossings in the last year (over 2.75 million).

The December Harvard CAPS / Harris Poll survey was conducted online within the United States from December 14-15, 2022, among 1,851 registered voters by The Harris Poll and HarrisX. Follow the Harvard CAPS Harris Poll podcast at https://www.markpennpolls.com/ or on iHeart Radio, Apple Podcasts, Spotify, and other podcast platforms.

About The Harris Poll

The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations, and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing.

About the Harvard Center for American Political Studies

The Center for American Political Studies (CAPS) is committed to and fosters the interdisciplinary study of U.S. politics. Governed by a group of political scientists, sociologists, historians, and economists within the Faculty of Arts and Sciences at Harvard University, CAPS drives discussion, research, public outreach, and pedagogy about all aspects of U.S. politics. CAPS encourages cutting-edge research using a variety of methodologies, including historical analysis, social surveys, and formal mathematical modeling, and it often cooperates with other Harvard centers to support research training and encourage cross-national research about the United States in comparative and global contexts. More information at https://caps.gov.harvard.edu/.

©Harvard CAPS / Harris Poll. All rights reserved.

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Starting to Be Housing Bust 2 for Homebuilders & New Single-Family Houses

By Wolf Richter

To get rid of ballooning inventories amid spiking cancellations & plunging sales, builders try to sell to rental operations, but they pulled back too.

If a homebuilder cannot sell their ballooning inventory of unsold new houses to households, at current prices and mortgage rates, amid plunging sales and soaring cancellation rates of signed contracts – topping out at 45% in the Southwest and at 38% in Texas – despite aggressive incentives such as mortgage-rate buydowns to stimulate sales and prevent cancellations, well, whom are homebuilders supposed to sell those houses to?

Rental operations? That may be hard too because many have pulled back for all the same reasons as households: Prices are too high, and financing is too costly. Sales to single-family rental investors have plunged by 32% in Q3 from a year ago. So here we go with a good-luck nod…

Lennar, the second-biggest homebuilder by market capitalization, has been approaching big rental landlords with an inventory list of about 5,000 houses, that it wants to offload, according to sources cited by Bloomberg. Many of the houses are in the Southwest and Southeast. They include entire subdivisions.

Lennar has sold about 1,000 single-family houses to rental operators in its third quarter – and some of those houses it sold to its own rental operation. Last year, Lennar obtained $1.25 billion in equity commitments from Allianz Real Estate and Centerbridge Partners for its rental division to buy rental houses.


“Our program has taken a very disciplined approach to stepping back and waiting for the market to kind of reconcile itself,” Lennar Executive Chairman Stuart Miller told analysts in September. “Contrary to what you might have thought, we’re probably selling less to our own program and more to other SFR programs outside of Lennar.”

It’s across the industry: Homebuilders have pitched at least 40,000 new houses to rental operators in recent months, Jeff Cline, an executive director at commercial real-estate advisory SVN, told Bloomberg. He said that many of these houses had originally been sold to individual buyers who then canceled the purchase contract.

Cancellations of signed contracts with individual buyers have spiked. According to a survey by John Burns Real Estate Consulting of homebuilders that account for roughly 20% of all new home sales, the cancellation rate spiked to 26% in October, up from a rate of 8% a year ago, and up from 11% in October 2019.

The cancellation rates topped out in the Southwest at 45%, up from a cancellation rate of 9% a year ago. In Texas, the cancellation rate spiked to 39%, up from 12% a year ago (chart via Rick Palacios Jr., Director of Research at John Burns, click to enlarge):

With the median sold price of a new house currently at around $450,000, those 40,000 houses that builders are trying to offload to single-family rental operators would run around $18 billion…..

*****

Continue reading this article at Wolf Street.

Weekend Read: Plausibility But Not Science Has Dominated Public Discussions of the Covid Pandemic thumbnail

Weekend Read: Plausibility But Not Science Has Dominated Public Discussions of the Covid Pandemic

By Harvey Risch

“Attacks on me, quite frankly, are attacks on science.” ~ Anthony Fauci, June 9, 2021 (MSNBC).

Preposterous.

For one thing, Dr. Fauci has not reported accurately on scientific questions throughout the Covid-19 pandemic. For another, the essential dialectic of science is arguing, questioning, debating. Without debate, science is nothing more than propaganda.

Yet, one may ask, how has it been possible to present technical material to the American public, if not to the international public, for almost three years and achieve a general understanding that the matters were “scientific,” when in fact they were not? .I assert that what has been fed to these publics through the traditional media over the course of the pandemic has largely been plausibility, but not science, and that both the American and international publics, as well as most doctors, and scientists themselves, cannot tell the difference. However, the difference is fundamental and profound.

Science starts with theories, hypotheses, that have examinable empiric ramifications. Nevertheless, those theories are not science; they motivate science. Science occurs when individuals do experiments or make observations that bear upon the implications or ramifications of the theories. Those findings tend to support or refute the theories, which are then modified or updated to adjust to the new observations or discarded if compelling evidence shows that they fail to describe nature. The cycle is then repeated. Science is the performance of empirical or observational work to obtain evidence confirming or refuting theories.

In general, theories tend to be plausible statements describing something specific about how nature operates. Plausibility is in the eye of the beholder, since what is plausible to a technically knowledgeable expert may not be plausible to a lay person. For example—perhaps oversimplified—heliocentrism was not plausible before Nicolaus Copernicus published his theory in 1543, and it was not particularly plausible afterward for quite some time, until Johannes Kepler understood that astronomical measurements made by Tycho Brahe suggested refining the Copernican circular orbits to ellipses, as well as that mathematical rules seemed to govern the planetary motions along those ellipses—yet reasons for those mathematical rules, even if they were good descriptions of the motions, weren’t plausible until Isaac Newton in 1687 posited the existence of a universal gravitational force between masses, along with a mass-proportional, inverse-square distance law governing the magnitude of the gravitational attraction, and observed numerous quantitative phenomena consistent with and supporting this theory.

For us today, we hardly think about the plausibility of elliptic heliocentric solar system orbits, because observational data spanning 335 years have been highly consistent with that theory. But we might balk at thinking it plausible that light travels simultaneously as both particles and waves, and that making measurements on the light, what we do as observers, determines whether we see particle behavior or wave behavior, and we can choose to observe either particles or waves, but not both at the same time. Nature is not necessarily plausible.

But all the same, plausible theories are easy to believe, and that is the problem. That is what we have been fed for almost three years of the Covid-19 pandemic. In fact though, we have been fed plausibility instead of science for much longer.

Cargo-Cult Science

Charlatans purporting to bend spoons with their minds, or claiming to study unconfirmable, irreplicable “extrasensory perception” were very popular in the 1960s and 1970s. Strange beliefs in what “science” could establish reached such a level that physics Nobel Laureate Richard Feynman delivered the 1974 Caltech commencement address (Feynman, 1974) bemoaning such irrational beliefs. His remarks were not aimed at the general public, but at graduating Caltech students, many of whom were destined to become academic scientists.

In his address, Feynman described how South Sea Islanders, after World War II, mimicked US soldiers stationed there during the war who had guided airplane landings of supplies. The island residents, using local materials, reproduced the form and behaviors of what they had witnessed of the American GIs, but no supplies came.

In our context, Feynman’s point would be that until a theory has objective empirical evidence bearing upon it, it remains only a theory no matter how plausible it may seem to everyone who entertains it. The Islanders were missing the crucial fact that they did not understand how the supply system worked, in spite of how plausible their reproduction of it was to them. That Feynman felt compelled to warn graduating Caltech students of the difference between plausibility and science, suggesting that this difference was not adequately learned in their Institute educations. It was not explicitly taught when this author was an undergraduate there in those years, but somehow, we were expected to have learned it “by osmosis.”

Evidence-Based Medicine

There is perhaps no bigger plausibility sham today than “evidence-based medicine” (EBM). This term was coined by Gordon Guyatt in 1990, after his first attempt, “Scientific Medicine,” failed to gain acceptance the previous year. As a university epidemiologist in 1991, I was insulted by the hubris and ignorance in the use of this term, EBM, as if medical evidence were somehow “unscientific” until proclaimed a new discipline with new rules for evidence. I was not alone in criticism of EBM (Sackett et al., 1996), though much of that negative response seems to have been based on loss of narrative control rather than on objective review of what medical research had actually accomplished without “EBM.”

Western medical knowledge has accreted for thousands of years. In the Hebrew Bible (Exodus 21:19), “When two parties quarrel and one strikes the other … the victim shall be made thoroughly healed” [my translation] which implies that individuals who had types of medical knowledge existed and that some degree of efficacy inhered. Hippocrates, in the fifth-fourth century BCE, suggested that disease development might not be random but related to exposures from the environment or to certain behaviors. In that era, there were plenty of what today we would consider counterexamples to good medical practice. Nevertheless, it was a start, to think about rational evidence for medical knowledge.

James Lind (1716-1794) advocated for scurvy protection through the eating of citrus. This treatment was known to the ancients, and in particular had been earlier recommended by the English military surgeon John Woodall (1570-1643)—but Woodall was ignored. Lind gets the credit because in 1747 he carried out a small but successful nonrandomized, controlled trial of oranges and lemons vs other substances among 12 scurvy patients.

During the 1800s, Edward Jenner’s use of cowpox as a smallpox vaccine was elaborated by culturing in other animals and put into general use in outbreaks, so that by the time of the 1905 Supreme Court case of Jacobson v. Massachusetts, the Chief Justice could assert that smallpox vaccination was agreed upon by medical authorities to be a commonly accepted procedure. Medical journals started regular publications also in the 1800s. For example, the Lancet began publishing in 1824. Accreting medical knowledge started to be shared and debated more generally and widely.

Fast-forward to the 1900s. In 1914-15, Joseph Goldberger (1915) carried out a nonrandomized dietary intervention trial that concluded that pellagra was caused by lack of dietary niacin. In the 1920s, vaccines for diphtheria, pertussis, tuberculosis and tetanus were developed. Insulin was extracted. Vitamins, including Vitamin D for preventing rickets, were developed. In the 1930s, antibiotics began to be created and used effectively. In the 1940s, acetaminophen was developed, as were chemotherapies, and conjugated estrogen began to be used to treat menopausal hot flashes. Effective new medications, vaccines and medical devices grew exponentially in number in the 1950s and 1960s. All without EBM.

In 1996, responding to criticisms of EBM, David Sackett et al. (1996) attempted to explain its overall principles. Sackett asserted that EBM followed from “Good doctors use both individual clinical expertise and the best available external evidence.” This is an anodyne plausibility implication, but both components are basically wrong or at least misleading. By phrasing this definition in terms of what individual doctors should do, Sackett was implying that individual practitioners should use their own clinical observations and experience. However, the general evidential representativeness of one individual’s clinical experience is likely to be weak. Just like other forms of evidence, clinical evidence needs to be systematically collected, reviewed, and analyzed, to form a synthesis of clinical reasoning, which would then provide the clinical component of scientific medical evidence.

A bigger failure of evidential reasoning is Sackett’s statement that one should use “the best available external evidence” rather than all valid external evidence. Judgments about what constitutes “best” evidence are highly subjective and do not necessarily yield overall results that are quantitatively the most accurate and precise (Hartling et al., 2013; Bae, 2016). In formulating his now canonical “aspects” of evidential causal reasoning, Sir Austin Bradford Hill (1965) did not include an aspect of what would constitute “best” evidence, nor did he suggest that studies should be measured or categorized for “quality of study” nor even that some types of study designs might be intrinsically better than others. In the Reference Manual on Scientific Evidence, Margaret Berger (2011) states explicitly, “… many of the most well-respected and prestigious scientific bodies (such as the International Agency for Research on Cancer (IARC), the Institute of Medicine, the National Research Council, and the National Institute for Environmental Health Sciences) consider all the relevant available scientific evidence, taken as a whole, to determine which conclusion or hypothesis regarding a causal claim is best supported by the body of evidence.” This is exactly Hill’s approach; his aspects of causal reasoning have been very widely used for more than 50 years to reason from observation to causation, both in science and in law. That EBM is premised on subjectively cherry-picking “best” evidence is a plausible method but not a scientific one.

Over time, the EBM approach to selectively considering “best” evidence seems to have been “dumbed down,” first by placing randomized controlled trials (RCTs) at the top of a pyramid of all study designs as the supposed “gold standard” design, and later, as the asserted only type of study that can be trusted to obtain unbiased estimates of effects. All other forms of empirical evidence are “potentially biased” and therefore unreliable. This is a plausibility conceit as I will show below.

But it is so plausible that it is routinely taught in modern medical education, so that most doctors only consider RCT evidence and dismiss all other forms of empirical evidence. It is so plausible that this author had an on-air verbal battle over it with a medically uneducated television commentator who provided no evidence other than plausibility (Whelan, 2020): Isn’t it “just obvious” that if you randomize subjects, any differences must be caused by the treatment, and no other types of studies can be trusted? Obvious, yes; true, no.

Who benefits from a sole, obsessive focus on RCT evidence? RCTs are very expensive to conduct if they are to be epidemiologically valid and statistically adequate. They can cost millions or tens of millions of dollars, which limit their appeal largely to companies promoting medical products likely to bring in profits substantially larger than those costs. Historically, pharma control and manipulation of RCT evidence in the regulation process provided an enormous boost in the ability to push products through regulatory approval into the marketplace, and the motivation to do this still continues today.

This problem was recognized by Congress, which passed the Food and Drug Administration Modernization Act of 1997 (FDAMA) that established in 2000 the ClinicalTrials.gov website for registration of all clinical trials performed under investigational new drug applications to examine the effectiveness of experimental drugs for patients with serious or life-threatening conditions (National Library of Medicine, 2021). For related reasons involving conflicts of interests in clinical trials, the ProPublica “Dollars for Docs” website (Tigas et al., 2019) covering pharma company payments to doctors over the years 2009-2018 and the OpenPayments website (Centers for Medicare & Medicaid Services, 2022) covering payments from 2013 through 2021 were established and made publicly searchable. These information systems were created because the “plausibility” that randomization automatically makes study results accurate and unbiased was recognized as insufficient to cope with research chicanery and inappropriate investigator conflict-of-interest motives.

While these attempts to reform or limit medical research corruption have helped, misrepresentation of evidence under the guise of EBM persists. One of the worst examples was a paper published in the New England Journal of Medicine February 13, 2020, at the beginning of the Covid-19 pandemic, titled, “The Magic of Randomization versus the Myth of Real-World Evidence,” by four well-known British medical statisticians having substantial ties to pharma companies (Collins et al., 2020). It was likely written in January 2020, before most people knew that the pandemic was coming. This paper claims that randomization automatically creates strong studies, and that all nonrandomized studies are evidentiary rubbish. At the time of reading it, I felt it to be a screed against my entire discipline, epidemiology. I was immediately offended by it, but I later understood the serious conflicts of interest of the authors. Representing that only highly unaffordable RCT evidence is appropriate for regulatory approvals provides a tool for pharma companies to protect their expensive, highly profitable patent products against competition by effective and inexpensive off-label approved generic medications whose manufacturers would not be able to afford large-scale RCTs.

Randomization

So, what is the flaw of randomization to which I have been alluding, that requires a deeper examination in order to understand the relative validity of RCT studies vs other study designs? The problem lies in the understanding of confounding. Confounding is an epidemiological circumstance where a relationship between an exposure and an outcome is not due to the exposure, but to a third factor (the confounder), at least in part. The confounder is somehow associated with the exposure but is not a result of the exposure.

In such cases, the apparent exposure-outcome relationship is really due to the confounder-outcome relationship. For example, a study of alcohol consumption and cancer risk could be potentially confounded by smoking history which correlates with alcohol use (and isn’t caused by alcohol use) but is really driving the increased cancer risk. A simple analysis of alcohol and cancer risk, ignoring smoking, would show a relationship. However, once the effect of smoking was controlled or adjusted, the alcohol relationship with cancer risk would decline or disappear.

The purpose of randomization, of balancing everything between the treatment and control groups, is to remove potential confounding. Is there any other way to remove potential confounding? Yes: measure the factors in question and adjust or control for them in statistical analyses. It is thus apparent that randomization has exactly one possible benefit not available to nonrandomized studies: the control of unmeasured confounders. If biological, medical, or epidemiological relationships are incompletely understood about an outcome of interest, then not all relevant factors may be measured, and some of those unmeasured factors could still confound an association of interest.

Thus, randomization, in theory, removes potential confounding by unmeasured factors as an explanation for an observed association. That is the plausibility argument. The question though concerns how well randomization works in reality, and who exactly needs to be balanced by the randomization. Clinical trials apply randomization to all participating subjects to determine treatment group assignments. If in the study outcome event individuals comprise a subset of the total study, then those outcome people need to be balanced in their potential confounders as well. For example, if all of the deaths in the treatment group are males and all in the placebo group are females, then gender likely confounds the effect of treatment.

The problem is, RCT studies essentially never explicitly demonstrate adequate randomization of their outcome subjects, and what they purport to show of randomization for their total treatment groups is almost always scientifically irrelevant. This problem likely arises because the individuals carrying out RCT studies, and the reviewers and journal editors who consider their papers, do not sufficiently understand epidemiologic principles.

In most RCT publications, the investigators provide a perfunctory initial descriptive table of the treatment and placebo groups (as columns), vs various measured factors (as rows). That is, the percent distributions of treatment and placebo subjects by gender, age group, race/ethnicity etc. The third column in these tables is usually the p-value statistic for the frequency difference between the treatment and placebo subjects on each measured factor. Loosely speaking, this statistic estimates a probability that a frequency difference between treatment and placebo subjects this large could have occurred by chance. Given that the subjects were assigned their treatment groups entirely by chance, statistical examination of the randomization chance process is tautological and irrelevant. That in some RCTs, some factors may appear to be more extreme than chance would allow under randomization is only because multiple factors down the rows have been examined for distributional differences and in such circumstances, statistical control of multiple comparisons must be invoked.

What is needed in the third column of the RCT descriptive table is not p-value, but a measure of the magnitude of confounding of the particular row factor. Confounding is not measured by how it occurred, but by how bad it is. In my experience as a career epidemiologist, the best single measure of confounding is the percentage change in the magnitude of the treatment-outcome relationship with vs without adjustment for the confounder. So for example, if with adjustment for gender, treatment cuts mortality by 25% (relative risk = 0.75), but without adjustment cuts it by 50%, then the magnitude of confounding by gender would be (0.75 – 0.50)/0.75 = 33%. Epidemiologists generally consider more than a 10% change with such adjustment to imply that confounding is present and needs to be controlled.

As I have observed, most RCT publications do not provide the magnitude of confounding estimates for their overall treatment groups, and never for their outcome subjects. So it is not possible to tell that the outcome subjects have been adequately randomized for all of the factors given in the paper’s descriptive table. But the potential fatal flaw of RCT studies, what can make them no better than nonrandomized studies and in some cases worse, is that randomization only works when large numbers of subjects have been randomized (Deaton and Cartwright, 2018), and this applies specifically to the outcome subjects, not just to the total study.

Consider flipping a coin ten times. It might come up at least seven heads and three tails, or vice versa, easily by chance (34%). However, the magnitude of this difference, 7/3 = 2.33, is potentially quite large in terms of possible confounding. On the other hand, occurrence of the same 2.33 magnitude from 70 or more heads out of 100 flips would be rare, p=.000078. In order for randomization to work, there needs to be sizable numbers of outcome events in both the treatment and placebo groups, say 50 or more in each group. This is the unspoken potential major flaw of RCT studies that makes their plausibility argument useless, because RCT studies are generally designed to have enough statistical power to find statistical significance of their primary result if the treatment works as predicted, but not designed to have enough outcome subjects to reduce potential confounding to less than 10% say.

An important example of this issue can be seen in the first published efficacy RCT result for the Pfizer BNT162b2 mRNA Covid-19 vaccine (Polack et al., 2020). This study was considered large enough (43,548 randomized participants) and important enough (Covid-19) that because of its assumed RCT plausibility it secured publication in the “prestigious” New England Journal of Medicine. The primary outcome of the study was the occurrence of Covid-19 with onset at least seven days after the second dose of the vaccine or placebo injection. However, while it observed 162 cases among the placebo subjects, enough for good randomization, it found only eight cases among the vaccine subjects, nowhere nearly enough for randomization to have done anything to control confounding.

From general epidemiologic experience, an estimated relative risk this large (approximately 162/8 = 20) would be unlikely entirely to be due to confounding, but the accuracy of the relative risk or its implied effectiveness ((20 – 1)/20 = 95%) is in doubt. That this vaccine in use was observed not to be this effective in reducing infection risk is not surprising given the weakness of the study result because of inadequate sample size to assure that randomization worked for the outcome subjects in both the treatment and placebo groups.

This “dive into the weeds” of epidemiology illuminates why an RCT study with fewer than, say, 50 outcome subjects in each and every treatment arm of the trial has little to no claim to avoiding possible confounding by unmeasured factors. But it also makes evident why such a trial may be worse than a nonrandomized controlled trial of the same exposure and outcome. In nonrandomized trials, the investigators know that many factors may, as possible confounders, influence the occurrence of the outcome, so they measure everything they think relevant, in order to then adjust and control for those factors in the statistical analyses.

However, in RCTs, investigators routinely think that the randomization has been successful and thus carry out unadjusted statistical analyses, providing potentially confounded results. When you see RCTs paraded as “large” studies because of their tens of thousands of participants, look past that, to the numbers of primary outcome events in the treatment arms of the trial. Trials with small numbers of primary outcome events are useless and should not be published, let alone relied upon for public health or policy considerations.

Empirical Evidence

After reading all of the foregoing, you might think that these arguments concerning randomized vs nonrandomized trials are very plausible, but what about empirical evidence to support them? For that, a very thorough analysis was carried out by the Cochrane Library Database of Systematic Reviews (Anglemyer et al., 2014). This study comprehensively searched seven electronic publication databases for the period from January 1990 through December 2013, to identify all systematic review papers that compared “quantitative effect size estimates measuring efficacy or effectiveness of interventions tested in [randomized] trials with those tested in observational studies.” In effect a meta-analysis of meta-analyses, the analysis included many thousands of individual study comparisons as summarized across 14 review papers.

The bottom line: an average of only 8% difference (95% confidence limits, −4% to 22%, not statistically significant) between the RCTs and their corresponding nonrandomized trials results. In summary, this body of knowledge—the empirical as well as that based upon epidemiologic principles—demonstrates that, contra so-called “plausibility,” randomized trials have no automatic ranking as a gold standard of medical evidence or as the only acceptable form of medical evidence, and that every study needs to be critically and objectively examined for its own strengths and weaknesses, and for how much those strengths and weaknesses matter to the conclusions drawn.

Other Plausibilities

During the Covid-19 pandemic, numerous other assertions of scientific evidence have been used to justify public health policies, including for the very declaration of the pandemic emergency itself. Underlying many of these has been the plausible but fallacious principle that the goal of public health pandemic management is to minimize the number of people infected by the SARS-CoV-2 virus.

That policy may seem obvious, but it is wrong as a blanket policy. What needs to be minimized are the harmful consequences of the pandemic. If infection leads to unpleasant or annoying symptoms for most people but no serious or long-term issues—as is generally the case with SARS-CoV-2, particularly in the Omicron era—then there would be no tangible benefit of general public-health interventions and limitations infringing upon natural or economic rights of such individuals and causing harms in themselves.

Western societies, including the US, take annual respiratory infection waves in stride without declared pandemic emergencies, even though they produce millions of infected individuals each year, because the consequences of infection are considered generally medically minor, even allowing for some tens of thousands of deaths annually.

It was established in the first few months of the Covid-19 pandemic that the infection mortality risk varied by more than 1,000-fold across the age span, and that people without chronic health conditions such as diabetes, obesity, heart disease, kidney disease, cancer history etc., were at negligible risk of mortality and very low risk of hospitalization. At that point, it was straightforward to define categories of high-risk individuals who on average would benefit from public health interventions, vs low-risk individuals who would successfully weather the infection without appreciable or long-term issues. Thus, an obsessive, one-size-fits-all pandemic management scheme that did not distinguish risk categories was unreasonable and oppressive from the outset.

Accordingly, measures promoted by plausibility to reduce infection transmission, even had they been effective for that purpose, have not served good pandemic management. These measures however were never justified by scientific evidence in the first place. The Six-Foot Social Distancing Rule was an arbitrary concoction of the CDC (Dangor, 2021). Claims of benefit for wearing of face masks have rarely distinguished potential benefit to the wearer—for whom such wearing would be a personal choice whether or not to accept more theoretical risk—vs benefit to bystanders, so-called “source control,” wherein public health considerations might properly apply. Studies of mask-based source control for respiratory viruses, where the studies are without fatal flaws, have shown no appreciable benefit in reducing infection transmission (Alexander, 2021; Alexander, 2022; Burns, 2022).

General population lockdowns have never been used in Western countries and have no evidence of effect for doing anything other than postponing the inevitable (Meunier, 2020), as Australia population data make clear (Worldometer, 2022). In the definitive discussion of public health measures for control of pandemic influenza (Inglesby et al., 2006), the authors state, “There are no historical observations or scientific studies that support the confinement by quarantine of groups of possibly infected people for extended periods in order to slow the spread of influenza. A World Health Organization (WHO) Writing Group, after reviewing the literature and considering contemporary international experience, concluded that ‘forced isolation and quarantine are ineffective and impractical.’ … The negative consequences of large-scale quarantine are so extreme (forced confinement of sick people with the well; complete restriction of movement of large populations; difficulty in getting critical supplies, medicines, and food to people inside the quarantine zone) that this mitigation measure should be eliminated from serious consideration.”

On travel restrictions, Inglesby et al. (2006) note, “Travel restrictions, such as closing airports and screening travelers at borders, have historically been ineffective. The World Health Organization Writing Group concluded that ‘screening and quarantining entering travelers at international borders did not substantially delay virus introduction in past pandemics … and will likely be even less effective in the modern era.’” On school closures (Inglesby et al., 2006): “In previous influenza epidemics, the impact of school closings on illness rates has been mixed. A study from Israel reported a decrease in respiratory infections after a 2-week teacher strike, but the decrease was only evident for a single day. On the other hand, when schools closed for a winter holiday during the 1918 pandemic in Chicago, ‘more influenza cases developed among pupils … than when schools were in session.’”

This discussion makes clear that these actions supposedly interfering with virus transmission on the basis of plausibility arguments for their effectiveness have been both misguided for managing the pandemic, and unsubstantiated by scientific evidence of effectiveness in reducing spread. Their large-scale promotion has demonstrated the failure of public-health policies in the Covid-19 era.

Plausibility vs Bad Science

An argument could be entertained that various public-health policies as well as information made available to the general public have not been supported by plausibility but instead by bad or fatally flawed science, posing as real science. For example, in its in-house, non-peer-reviewed journal, Morbidity and Mortality Weekly Reports, CDC has published a number of analyses of vaccine effectiveness. These reports described cross-sectional studies but analyzed them as if they were case-control studies, systematically using estimated odds ratio parameters instead of relative risks to calculate vaccine effectiveness. When study outcomes are infrequent, say fewer than 10% of study subjects, then odds ratios can approximate relative risks, but otherwise, odds ratios tend to be overestimates. However, in cross-sectional studies, relative risks can be directly calculated and can be adjusted for potential confounders by relative-risk regression (Wacholder, 1986), similar to the use of logistic regression in case-control studies.

A representative example is a study of the effectiveness of third-dose Covid-19 vaccines (Tenforde et al., 2022). In this study, “… the IVY Network enrolled 4,094 adults aged ≥18 years,” and after relevant subject exclusions, “2,952 hospitalized patients were included (1,385 case-patients and 1,567 non-COVID-19 controls).” Cross-sectional studies—by design—identify total numbers of subjects, whereas the numbers of cases and controls, and exposed and unexposed, happen outside of investigator intervention, i.e., by whatever natural processes underlie the medical, biological and epidemiological mechanisms under examination. By selecting a total number of subjects, the Tenforde et al. study is by definition a cross-sectional design. This study reported a vaccine effectiveness of 82% among patients without immunocompromising conditions. This estimate reflects an adjusted odds ratio of 1 – 0.82 = 0.18. However, the fraction of case patients among the vaccinated was 31% and among the unvaccinated was 70%, neither of which is sufficiently infrequent to allow use of the odds ratio approximation to calculate vaccine effectiveness. By the numbers in the study report Table 3, I calculate an unadjusted relative risk of 0.45 and an approximately adjusted relative risk of 0.43, giving the true vaccine effectiveness of 1 – 0.43 = 57% which is substantially different and much worse than the 82% presented in the paper.

In a different context, after I published a summary review article on the use of hydroxychloroquine (HCQ) for early outpatient Covid-19 treatment (Risch, 2020), a number of clinical trials papers were published in an attempt to show that HCQ is ineffective. The first of these so-called “refutations” were conducted in hospitalized patients, whose disease is almost entirely different in pathophysiology and treatment than early outpatient illness (Park et al., 2020). The important outcomes that I had addressed in my review, risks of hospitalization and mortality, were distracted in these works by focus on subjective and lesser outcomes such as duration of viral test positivity, or length of hospital stay.

Subsequently, RCTs of outpatient HCQ use began to be published. A typical one is that by Caleb Skipper et al. (2020). The primary endpoint of this trial was a change in overall self-reported symptom severity over 14 days. This subjective endpoint was of little pandemic importance, especially given that the subjects in studies by this research group were moderately able to tell whether they were in the HCQ or placebo arms of the trial (Rajasingham et al., 2021) and thus the self-reported outcomes were not all that blinded to the medication arms. From their statistical analyses, the authors appropriately concluded that “Hydroxychloroquine did not substantially reduce symptom severity in outpatients with early, mild COVID-19.” However, the general media reported this study as showing that “hydroxychloroquine doesn’t work.” For example, Jen Christensen (2020) in CNN Health stated about this study, “The antimalarial drug hydroxychloroquine did not benefit non-hospitalized patients with mild Covid-19 symptoms who were treated early in their infection, according to a study published Thursday in the medical journal Annals of Internal Medicine.”

But in fact, the Skipper study did report on the two outcomes of importance, risks of hospitalization and mortality: with placebo, 10 hospitalizations and 1 death; with HCQ, 4 hospitalizations and 1 death. These numbers show a 60% reduced risk of hospitalization which, though not statistically significant (p=0.11), is entirely consistent with all other studies of hospitalization risk for HCQ use in outpatients (Risch, 2021). Nevertheless, these small numbers of outcome events are not nearly enough for randomization to have balanced any factors, and the study is essentially useless on this basis. But it was still misinterpreted in the lay literature as showing that HCQ provides no benefit in outpatient use.

Conclusions

Many other instances of plausible scientific claptrap or bad science have occurred during the Covid-19 pandemic. As was seen with the retracted Surgisphere papers, medical journals routinely and uncritically publish this nonsense as long as conclusions align with government policies. This body of fake knowledge has been promulgated at the highest levels, by the NSC, FDA, CDC, NIH, WHO, Wellcome Trust, AMA, medical specialty boards, state and local public health agencies, multinational pharma companies and other organizations around the world that have violated their responsibilities to the public or have purposely chosen not to understand the fake science.

The US Senate recently voted, for the third time, to end the Covid-19 state of emergency, yet President Biden stated that he would veto the measure because of “fear” of recurring case numbers. My colleagues and I argued almost a year ago that the pandemic emergency was over (Risch et al., 2022), yet the spurious reliance on case counts to justify suppression of human rights under the cover of “emergency” continues unabated.

Massive censorship by the traditional media and much of social media has blocked most public discussion of this bad and fake science. Censorship is the tool of the undefendable, since valid science inherently defends itself. Until the public begins to understand the difference between plausibility and science and how large the effort has been to mass-produce science “product” that looks like science but is not, the process will continue and leaders seeking authoritarian power will continue to rely on it for fake justification.

References

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Alexander, P. E. (2022, June 3). CDC Refuses to Post the Fix to Its Mask Study. Brownstone Institute. https://brownstone.org/articles/cdc-refuses-to-post-the-fix-to-its-mask-study/

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Burns, E. (2022, November 10). Another Day, Another Terrible Mask Study. Let’s look under the hood of the newest piece of low quality science on masks. Substack. https://emilyburns.substack.com/p/another-day-another-terrible-mask

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Christensen, J. (2020, July 16). Hydroxychloroquine also doesn’t help Covid-19 patients who aren’t hospitalized, new study finds. CNN Health. https://www.cnn.com/2020/07/16/health/hydroxychloroquine-doesnt-work-hospitalized-patients/

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