The Scam of Book Sales thumbnail

The Scam of Book Sales

By Bruce Bialosky

The Left has gone after members of the U.S. Supreme Court on drummed-up ethics charges. Whether the Justices have violated any ethics rules (which they have all denied in specificity as to their filings and their actions) is in the eye of the beholder. What we want to explore is how people in public office make significant income from book sale advances and then book sales.

The issue recently exploded because of an Associated Press (AP) story that focused on the left-leaning Justice Sonia Sotomayor. The big issue regarding Justice Sotomayor was how she milked sales through her speeches. Instead of receiving speaking fees at her favorite “nonprofit” or university, the speech sponsor would buy hundreds of her books to be distributed to the guests at the events. The left-of-center press actually picked up this story.

The conflict’s focus delineated by the AP is that Sotomayor used her Supreme Court staff to arrange the sales. The AP pointed out that this use of staff is illegal (unethical) for people in Congress or the Executive Branch. What the AP does not point out is that Congressional members just kick this function to their campaign committees. Needless to say, members of the Supreme Court don’t have campaign committees. Nevertheless, the end result (book sales) is the same.

If you enter a bookstore (I know that it is kind of old-fashioned) you will find an amazing number of political memoirs. My question is, who is reading all of these books? It seems like every elected official or former elected official has a memoir out or did at one point. Quite frankly, I have little or no interest in them at all. And I say that as a certified political junkie.

Mitch McConnell, U.S. Senate minority leader, has authored two books. God knows who writes these things. It is hard to tell how many books he has sold, but we do know he received an advance of $145,000 for the last one in 2015. Can we guess how many books were handed out to his biggest contributors? How many were sold as part of the speeches he gave?
It is nearly impossible to discover what the actual sales are for most of these books. The publishers are paying money to elected officials or highly influential appointed officials that we have no idea whether they are recouping.

Let’s be clear. These are capitalistic companies with a profit motive. They are paying money out in the hopes of recouping those monies and more to create profit, that evil word to the tender ears of the Left.

It just seems that book sales are exempted from any kind of oversight. What is the justification for that being an acceptable form of income and other forms such as speaking fees are not?

Many years ago, I was part of a select team who were advising Dennis Prager on a potential run for Barbara Boxer’s U.S. Senate seat. Among the many considerations for Mr. Prager – like with many candidates (Republicans) — was a financial consideration. He comes from private industry and not career politics. His streams of income would be prohibited if he were elected except for book sales. Dennis is a legitimate author who writes his own books, but his latest – The Rational Bible – is not aimed toward heavy sales. His anticipated loss of income was one of the many reasons you don’t see him in the United States Senate today.

The only books that seem to warrant these huge advances are the ones coming from national figures. Presidents walk out of the White House signing book deals in the stratosphere like the Obamas’ deal with a $65 million advance. The Clintons have been able to wrangle book deals on a continuous basis. So have the Bushes. At least they sell books. We still have no idea whether these are profitable deals or disguised bribes.

Then there is the case of the Supremes who have lifetime jobs and restricted outside revenue. They make a genuinely nice salary — $274,200 as of 2022 — which is a pittance compared to what they would make in the private sector. In the case of Sotomayor, she has collected $3.7 million from book sales since her 2009 appointment to the Court. As opposed to many of the people mentioned above, I am confident the Supremes write their own books. After all, they do a lot of writing as part of their job even though sometimes that writing can be murky.

The emphasis in the case of Sotomayor is her use of staff to arrange speeches with book sales. The stench of so many of our elected officials, in and out of office, profiteering on their positions by writing books (if they actually write them) has become somewhat of a joke. Fat advances and no accounting for whether the publishers make the money back is the problem.

The fact that this is the only exempt area is quite interesting. It is still better than members of Congress making individual stock trades or providing insider information to their spouses (hello Nancy Pelosi and Dianne Feinstein). The bigger question is how do all these elected officials increase their net worth by so much while receiving their government salaries?

*****

This article was published by Flash Report and is reproduced with permission from the author.

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Show Trial, American Style thumbnail

Show Trial, American Style

By T.J. Harker

The indictments of Donald Trump represent a power play, not the interests of justice.

Special Counsel Jack Smith has indicted President Trump. Again. To spare you the pain of reading them, let me summarize the recent 45-page “election fraud” indictment and the June 44-page “documents” indictment: in June, Smith indicted Trump for stealing the government’s office paper. In August, he indicted Trump for claiming the 2020 election was fraudulent.

Lavrentiy Beria, Stalin’s head of the Soviet secret police, once remarked, “Show me the man, and I’ll show you the crime.” From personally torturing political dissidents to overseeing the massacre of more than 15,000 Polish officers in the infamous Katyn Forest, Beria wrought horrors upon Stalin’s enemies—real and perceived. He kept it up for more than 20 years until, in a predictable irony, fate caught up with him and he was “tried” in 1953. He was shot in the head two days before Christmas. At his “trial,” Beria was not afforded the protections of due process. His was a “show trial.” There are echoes of Beria in Jack Smith; while Trump may be afforded due process, we already know the prosecution is substantively illegitimate. With these recent indictments, Americans are going to have their first national experience of a “show trial.”

At common law, a crime was an intentional act that ordinary people understood to be substantively wrong in itself—murder, rape, robbery, arson, burglary, and mayhem, etc. By the time we abandoned the federal common law in 1938, Congress was comfortable empowering the administrative state to enforce regulations with criminal penalties. The ensuing 80 years are a testament to Congress’ insatiable appetite for criminalizing things it didn’t like. Today, all sorts of inane activities are “crimes”—a bastardization of the moral nature of law well documented nearly 15 years ago by Harvey Silverglate and Alan Dershowitz in Three Felonies a Day: How the Feds Target the Innocent.

At the federal level (and in many states), evidence supporting an allegation must be presented to a grand jury. The grand jury then votes on whether to return an indictment. Unanimity is not required, only a majority. The standard of proof is “a preponderance of the evidence,” which is legalese for “probably.” This means that a criminal indictment may stand on thin ice: 51 percent of the jurors vote that a defendant probably did the arguably bad thing.

After the “crimes” are charged, the trial is supposed to do some substantive work. The object of a legitimate trial is to ferret out the truth through a courtroom dance mediated by the rules of evidence and criminal procedure and tempered by the inherent conservatism of the jury. Its purpose is to protect our form of government on the supposition that the form of government protects our way of life. If the object of a trial is perverted, an injustice may result. If its purpose is perverted, our way of life is threatened. The object of Beria’s trial was not to ascertain the truth, and its purpose was not to sustain a rules-based order. Instead, because it was a show trial, its object was a public demonstration of raw political power. Its purpose was to imbue that raw political power with the patina of legal legitimacy—by coopting the majesty of the law’s processes while ignoring its substance. The same is true of the pending trials of Donald J. Trump.

The “Election Fraud” Case

The election fraud case has four counts. Count One alleges a conspiracy to defraud the United States by obstructing the “lawful federal government function,” which Smith defines as “the nation’s process of collecting, counting, and certifying the results of the presidential election.” The crux of the allegations is that Trump and the alleged co-conspirators lied to Congress, the Vice President, and various state officials to induce them to delay or alter the likely outcome of the election certification pending on January 6, 2021. The indictment is, in the parlance of our day, “problematic.” I’ll focus on two points relating to the first count. (The other three charges, which incorporate the allegations in the first count, will likely rise or fall with count one.)

First, the indictment presupposes that there was no election fraud. It then characterizes Trump’s contrary assertions from November 14, 2020, through January 20, 2021, as “false,” as though this were self-evident. This is weird. In a fraud trial, the prosecution typically follows a three-step process: prove the truth, prove the defendant knew the truth, and prove the defendant lied about it. It’s common sense. How can you prove a lie if you haven’t established the truth? Here, however, Smith skips the first step. Instead of alleging there was no election fraud on November 3, Smith alleges that Trump knew beginning November 14 that election fraud claims were false but pressured Vice President Pence and others anyway. These are not the same thing.

And, the latter is not legally sufficient. As a matter of law, it’s not enough to prove that after November 14 some of the President’s advisors told him they disbelieved the election fraud claims; yet Smith’s indictment contains literally dozens of paragraphs to this effect. It won’t even be enough to prove Trump disbelieved them. As a legal matter, the prosecution has to prove they are false in fact. If this is confusing, consider that in the 45 pages of this election fraud indictment, there is no reference to fraud on election day. By all appearances, it seems Smith doesn’t intend to prove the November 3 election was legitimate. He simply declares it.

On page seven, Smith’s indictment repeats the well-trodden quote that the 2020 election was “the most secure in American history.” Smith’s aim is further suggested by the dates of the alleged conspiracy: from “on or about November 14, through on or about January 20, 2021.” That is, 11 days after the election. Expect this date range to appear in government motions to block discussion by the defense of election fraud prior to the alleged conspiracy—i.e., fraud on election day. Smith knows these motions will be decided by District Court Judge Tanya Chutkan, a sympathetic ear.

Filing and winning these motions is important to Smith’s case. After all, it’s apparent he’s not quite sure if the lie is that there was any fraud or only “outcome-determinative fraud.” At trial, Smith can gloss over this difficulty only by assuming the premise (there was no fraud) and preventing the defense from challenging it. He has apparently built in the “outcome determinative” language as a fallback position. In other words, if the court prevents Trump from demonstrating any fraud, Smith hopes the jury will assume there wasn’t any. A D.C. jury probably will. Alternatively, in the unlikely event, the court allows Trump to show some fraud on election day, Smith will have to rebut it by arguing it wasn’t “outcome determinative.” In either case, this is an absurdity. If after almost three years, the nation can’t agree on this issue, then no legitimate jury could agree on it in a few days of deliberations. Of course, Smith knew this when he venued the case in Washington D.C., where the jury pool is eager for a show trial and already believes the 2020 election “was the most secure in American history.”

But there’s a larger reason why the election fraud case is a sham. From election day through January 20 (and even now), millions believed there was election fraud. This was a grievance held by American citizens, Donald Trump among them. They had the right to assemble and petition their government to redress their grievances. The First Amendment doesn’t qualify this right by inquiring whether the grievances are sincerely held, or if the grievances are backstopped by evidence, or if the petitioners are being deceitful. It’s political speech. In this respect, the indictment’s extensively documented examples of Trump’s badgering and misrepresentations are irrelevant. He had a grievance, and his actions from November 14 through January 20 must fall within the First Amendment’s meaning of “petition the government.” If it doesn’t, then neither does shouting at your congressman about election fraud. Smith knew all of this. The indictment says as much: “[Trump] had a right, like every American, to speak publicly about the election and even to claim, falsely, that [it was fraudulent.]” That he indicted Trump anyway indicates this will be a show trial. Its purpose is not to find out if Trump lied or even if there was election fraud. Its purpose is to demonstrate publicly that questioning the regime narrative will not be protected by the First Amendment.

The “Documents” Case

The same is true of the documents case. What truth, exactly, is this trial supposed to discern regarding the two types of alleged offenses: retaining secret documents and lying about it (obstruction)? Is it that President Trump who on January 20, 2021, was entitled to know all the country’s secrets continued knowing them two days later as former president? No. Perhaps it’s that those secrets were written on sheets of paper? Not quite. After all, Trump could lawfully know the secrets on January 20, 2021, and he could lawfully write them down from memory on his own paper after the inauguration. This leaves one interpretation: the first set of charges against the former President amount to allegations that he stole the government’s office paper.

As for the obstruction charges, back in June, former Attorney General Bill Barr made an astounding claim: “[a]t its core, this is an obstruction case. Trump would not have been indicted just for taking the documents in the first place…[nor]…even if he delayed returning them.” Let that sink in. He would not have been indicted just for…one thing or even for some other thing, but for concealing those things. Well, that was just too much. In other words, “it’s not the crime, it’s the coverup.”

Barr’s breathless contention that Trump only doomed himself by obstructing justice is plainly wrong. Smith’s second indictment of Donald Trump is proof to the contrary. His analysis is also backwards. Obstruction is not the culmination of an increasing litany of serious but “overlookable” charges; it’s the fallback charge of an uncertain prosecutor who lacks the humility to be deterred by uncertainty. In essence, Trump is being prosecuted for concealing the existence of documents. This may not seem problematic until one considers that he was originally being investigated for retaining those same documents precisely because the government knew he had them. They were never concealed.

Hell Is Full of Laws

The rule of law, embodied in the trial, is an instrument the purpose of which is to sustain our civilization. It might seem strange to say that the ultimate purpose of a trial is something other than to determine the guilt or innocence of a particular defendant. After all, if a trial doesn’t serve some larger social purpose, actual guilt or innocence is irrelevant. In this way, the show trial perverts the entire process by making victory in a political power struggle its object and subversion of our way of life its purpose.

The curious thing is that the show trial does all of this while hewing to recognizable procedures. As a law student nearly 20 years ago, I enrolled in a natural law seminar. The professor, an artefact of a more serious time, once observed, “Hell is full of laws, and due process is strictly observed.” This is the essence of the show trial. It uses due process as a subterfuge. And it is this subterfuge that has confounded so many people of common decency: from ordinary Americans to high-ranking former officials like former Attorney General Barr.

As Beria understood, legal process can be marshaled to gussy up a rotten thing. The form can triumph over substance. That the great reputation of the law can be subverted by its lesser surrogates (statutes and process), and opportunistic powerbrokers can gain by the subversion, is the sine qua non of a show trial. Smith and the ruling regime hope to convince Americans that the indictment and pending trials of the former President of the United States are legitimate by heralding their processes in a way that obscures their rotten substance. If you have spent any time wondering whether Trump is “guilty,” then the psyop has succeeded on you.

The object of the pending trials of Donald Trump is not to determine if he really believed his election fraud claims, if he stole office paper, or if he lied about it. Their object is to demonstrate to 80,000,000 Americans that dissent will not be tolerated: that they should reconsider the next time they decide to assemble and complain. These trials will not sustain our form of government but replace it and, with it, our cherished way of life.

*****

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

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A Cartoon Graveyard – An Analysis of the Left’s Postmodern Attack on Excellence thumbnail

A Cartoon Graveyard – An Analysis of the Left’s Postmodern Attack on Excellence

By Conlan Salgado

There is an old idea that excellence in any discipline is difficult to achieve.  Perhaps that idea suggests another similar, though unconnected one: that those who have achieved excellence are difficult to enslave.In the movie 13 Assassins, Shinrokuro Shinmada says, “Ruling is convenient, but only for rulers. The people must learn to serve.” He might have said, “Ruling is possible, but only for rulers. The people must learn to serve.” Notwithstanding that this is the philosophy of the world elite, our reformulation begs two interesting questions: what are the qualities of a ruler? What are the qualities of a servant?

 Historically, there have been many answers offered for both. Mostly, they are unsatisfying, but some answers to the first question include: bloodline, extraordinary wealth, special knowledge, etc. Though the Western inheritance is partly Greek, even the Greek philosophers believed that self-governance was the privilege of a very few. Aristotle believed in natural slaves, people who by their nature would be better off governed by others.

Plato did not believe in self-governance. He was one of the first Western philosophers to articulate the idea that expertise, or possession of special knowledge, is what empowered one to rule over others (instead of the expert, he called such an individual a philosopher-king). Furthermore, if Plato’s conception of the philosopher-king has any validity, then in a Republic governed by the people and for the people, every man must in some sense become a philosopher-king. Unfortunately, that is impractical.

For the Founding Fathers, impracticality was not an option; an experiment in popular government, one in which both poor and rich would vote, educated and uneducated, had to take into account the wildly varying dispositions of the American public.

This is why the American Founders were conservative in their orientation towards institutions.  As long as churches, schools, the free press, and other guardians and educators of public thought and action thrived, the Republic which the Founders established was protected against the inevitable stupidity, vices, and weakness inherent in human nature.  This, in fact, is the point of having strong institutions such as the Church, the free press, etc., and it is also the point of being a conservative—to preserve the institutions which offset the worst of mankind’s tendencies.

On that score, we’ve run into problems, the biggest of them, at the moment, being that our institutions have been stolen from us and corrupted. This is why conservativism is no longer practical; for the near future, populism must be our political orientation.

The founding generation understood this too: there was a time when they realized their freedoms were being taken from them, that they could not preserve them through the usual means of institutions. They realized that they had to become revolutionaries, not for the sake of revolution, but for the sake of winning their freedoms back. It was only then that they could re-assume their natural conservative ethic. Our choice is nothing more or less. A revolutionary moment is upon us; wars are being waged on our freedoms. We cannot conserve what we do not have.

For the remaining paragraphs, I’d like to ponder only one of those wars, perhaps the most important of all for a free and self-governing people: the war on excellence. This war was declared almost 120 years ago with the advent of postmodernity, and what Nietzsche would have called the attack on foundations.

 Like most attacks in most wars, this one was tactical. In order to destroy excellence (and therefore virtue, which is the individual expression of excellence), the enemies of the West first had to destroy the standards which enshrined excellence as good, as desirable.  So gradually there emerged the notion that beauty was not objective; rather, it was a way of pulling the wool over people’s eyes.  It was a clever method of justifying the preferences of white European males at the expense of everyone else’s preferences.

Likewise, truth was not objective.Truth, as a normative concept, emerged out of the institutions established to preserve the status quo—the power of white European males.  Tradition gave Truth the guise of respectability; normativity made sure it could not be questioned.  It followed logically (there’s irony for you) that truth could not be timeless, could not be meaningfully normative or objective, in short; truth changed, if not day to day, at least century to century, or era to era.

In an age of popular government, the post-moderns took advantage of the crumbling philosophical standards and the newly ascendant politics based on consent of the governed.  To hold people to standards which they hadn’t consented to, such as tradition supplied in the forms of objective truth or beauty, was akin to governing another without his consent. Consent became the foundation of every action, from sex (consensual sex is always “good”, no matter how perverse the actual act) to art (what I prefer may not be what you prefer).

The essential problem was never with popular government, but always with postmodernity. Consent can be the basis of the exercise of power over others, especially a community of adult citizens, but it cannot be the basis of what makes knowledge legitimate, because of the very nature of knowledge itself. Namely, that knowledge itself is a commonwealth, added to over time, improved and perfected over time. The “over time” part is where tradition comes in.

 Likewise, consent cannot be what justifies standards of beauty because in order to discern beauty one must have some sort of aesthetic education (though the education need not be formal); all education is rooted in a tradition because—well, because education is meant to impart knowledge, and knowledge is accumulated over time, or as I put it, in a tradition.

Moreover, the artifacts of beauty—artworks—are generated using specific techniques, specific symbols, in short, specific forms of know-how. Again, know-how is a form of knowledge, so we’re back at education which is rooted in the accumulation of knowledge which is preserved and propagated within a tradition. I assume I don’t have to rehearse why consent can’t justify the standard of what is Truth (although I’ll just mention it has something to do with knowledge and tradition).

If only it were that easy. As it turns out, the post-moderns had a simple response. Remember how I said that consent can be the justification of the exercise of power? The post-moderns took that and ran: everything, they said, is a form of power. Love, beauty, truth—they are all functions of power.  The conclusion (ironically again) was only logical: if everything is a form of power, consent can be the justification of everything. It can be the justification for having a baby, for God’s sake; if I, as a woman, don’t want to have a child, abortion is my right. MY RIGHT!

Of course, all of that jabbering about power was only a front Is it any surprise that a group of people so obsessed with power were after power themselves?  The whole postmodern explanation of power and historical oppression was a reverse-justification of taking power and reapportioning it generously to themselves.

After destroying the standards of excellence, excellence itself evaporated. Math is racist, intelligence is racist, logic is racist, truth is racist, beauty is racist, goodness is racist, wanting to be physically fit is racist. Why?  Because all of the above require the cultivation of virtue to achieve, and people who are excellent are not easy to enslave. Fatphobia is bad, but not fatness, because fatness is a form of mediocrity. Unlike fitness, which requires at least discipline and self-control, fatness requires no virtue. It may even require vice (laziness, sloth). Fatness is not an unattractive trait, because unattractive is purely subjective.  You can’t hold me up to your standards (but they can sure as hell hold you down to theirs).

The last problem the post-moderns had to solve was how to spread mediocrity around like butter on bread. The answer: simply reverse the process by which a society cultivates excellence. Take over the institutions and have them form people poorly.

 Let the universities dumb people down instead of smarten them up. Let the press tell falsehoods instead of truths. Let the churches preach the message of anti-christ, instead of Christ. Let them say that virtue is not required to attain salvation, only social justice. Let the entertainment business weaken imagination through graphic images and cliché-ridden stories, rather than stimulate imagination through subtle, refined, symbolic imagery and complex stories.  (I’ve always suspected a connection between when our understanding of the human person became more caricatured and cartoonish and so did our artistic depictions of him.)

Create identity groups and tell people they must belong to them and tell them that they are expected to parrot certain traits to signify their membership within these identities. Let these traits be easy to adopt, hard to get rid of, and absolutely unfulfilling to the deepest needs of the human heart.  Create stereotypes, suggesting that all members of a certain group possess negative traits, such as all white people are oppressive; create stereotypes suggesting all members of a certain group possess positive traits, such as all black people are oppressed.  And these are only examples: the assault is on all fronts.

Friends, we are on the verge of losing this war, as we are with so many others. We need a photo opportunity. We want a shot at redemption. Otherwise, we’re going to end up cartoons in a cartoon graveyard.

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From Stoves To Ceiling Fans: The Biden Administration Has A Bad Regulation For Every Room In The House thumbnail

From Stoves To Ceiling Fans: The Biden Administration Has A Bad Regulation For Every Room In The House

By Ben Lieberman

2023 began with federal regulators targeting gas stoves, but we have since seen a host of other proposals going after washing machinesrefrigeratorsdishwashersceiling fanswater heaters, and others. They are all part of the Biden administration’s prioritization of the climate change agenda over the interests of consumers. Each runs the risk of boosting appliance prices, limiting choice, and compromising performance. And cumulatively, they add up to substantial headaches for homeowners that will only grow in the years ahead.

The proposed new Department of Energy (DOE) efficiency regulation for dishwashers may be the worst of the lot, since dishwashers are already badly overregulated by the agency.  Four rounds of successively tighter energy and water use limits have increased the time it takes to clean a load of dishes from about an hour in older models to more than two in federally-compliant ones.  Even DOE admitted that its past rules have caused this problem. In its words, “[t]o help compensate for the negative impact on cleaning performance associated with decreasing water use and water temperature, manufacturers will typically increase the cycle time.” Cleaning performance has also been compromised. And now, the agency seeks to tighten the screws yet again. (RELATED: SUZANNE DOWNING: Biden’s Climate Change Fantasies Are Infiltrating A Key Government Department)

Incidentally, DOE estimates that its proposed rule would save dishwasher owners a paltry $1.12 per year on their utility bills. But if it makes you feel any better about it, the agency also claims the measure will help address “the need to confront the global climate crisis.”

DOE’s proposed water heaters rule, like the one for stoves and a 2022 furnace proposal, stands out as being particularly hard on consumer choice. The reason is that these appliances come in both natural gas and electric versions, but the climate activists in the administration see natural gas as a hated fossil fuel and are using these regulations to skew the market towards electric.  It’s a profoundly anti-consumer thing to do, especially given that DOE estimates that natural gas costs less than a third that of electricity on a per unit energy basis. Nonetheless, the climate change-inspired push to wean homeowners off natural gas is well underway, and the water heater proposal is a part of it. (RELATED: BETSY MCCAUGHEY: Dems’ ‘Net Zero’ Fantasies Are Pie In The Sky)

Air conditioner regulations also deserve a dishonorable mention for the reason that they are targeted not only by DOE but also by the Environmental Protection Agency (EPA). The one-two regulatory punch from these agencies is impacting both the cost of repairing existing central air conditioning systems as well as the price tag for a new unit.  Things could get really bad next summer when tougher quotas take effect on the refrigerants needed to service most existing home air conditioners. The reason for the costly crackdown on these refrigerants, if you were wondering, is that they are blamed for contributing to climate change.

Keep in mind that none of these restrictions would ever help consumers. Anyone who wants to spend extra for an ultra-efficient dishwasher and doesn’t mind how long it takes to get the job done is always free to make that choice, with or without new regulations.  Similarly, homeowners who really believe that replacing their natural gas water heater with an electric one will help save the planet don’t have to wait for the government to impose new restrictions.  The only thing these regulations do is force the supposedly climate-friendly choice on everyone, whether they like it or not. Of course, most won’t.

The Biden appliance agenda isn’t just an assault on homeowners, it’s also an assault on our freedoms.

*****

This article was published by The Daily Caller News Foundation and is reproduced with permission.

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Bond Agency Downgrades US Sovereign Debt thumbnail

Bond Agency Downgrades US Sovereign Debt

By Neland Nobel

US government bonds are considered by the investment community to be “risk-free.”  They are low risk to be sure, given the ability of the US government to both tax and print money, but risk-free with our current fiscal trajectory seems a stretch.

So, Fitch, the bond rating agency called it as they saw it: the fiscal position of the US government is deteriorating.  S&P did a similar rating downgrade on August 5, 2011.  The stock market at that time fell 7% on that news and then the story gets lost to history.  However, it is noteworthy that two of the three major bond ratings agencies have now downgraded US debt.

Treasury Secretary Janet Yellen, on whose watch as both FED chairman and Treasury Secretary many fits of fiscal abuse have occurred, was quick to suggest the downgrade was a mistake.  She called the action “entirely unwarranted” and pointed to what she sees as improvement under Biden.  Like most defenders of Biden, she ascribes the recovery from the unprecedented Covid lockdown to the wisdom of Joe Biden. This is like a doctor taking credit for a patient’s recovery because the esteemed doctor quit standing on the patient’s throat.

CNN predictably called the downgrade a “black eye” but not much more.

Actually, if you read the Fitch analysis, they were not so much pointing to the present as they were the immediate future, the next three years or so.

In the very first paragraph which critics seem to conveniently overlook, they said:

“The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA-rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”

How dare they suggest the emperor has no clothes!  We have gone year after year with massive deficits and Congress has been so dysfunctional we have not even had a formal budget for years and have been running on “continuing resolutions”.  Often at midnight, it seems, every pork barrel idea is loaded into the hopper and pushed into an “omnibus budget”, wherein the whole glop of spending must be approved with no ability to discriminate between the necessary and wise and the unnecessary and profligate.  It is either vote for this fiscal mess or risk shutting down the government. It is not a process that engenders confidence.

But deficits no longer produce much political backlash. So, politicians gain more from spending than they lose by running up deficits.  That is because the political benefits are concentrated on important political constituencies in the present and the economic pain is dispersed and pushed back in time into the ethereal future.  Eventually, though, the future becomes today.

The result is spending has been rising much faster than revenue and the US government now had a debt-to-GDP ratio of 122%, meaning our debt burden is now more than the entire output of the economy.

Now it has improved a bit since the Covid crisis but still stands far higher than it did in the past and large deficits remain in the pipeline.  And some improvement should be expected after the economy was allowed to operate. What is remarkable is how little it has improved, in terms of overall trends.

We have pointed out before that about 80% of US spending is now on “automatic pilot” and does not even get voted on.  The partisan bickering is now over a relatively small slice of the budget.  The bulk of spending is “baked in the cake” in giant demographically driven programs like Social Security and Medicare.

So unlike Fitch, we would suggest it is not so much current political gamesmanship,  as it is a structural deficit, built into the system years ago.  Believe it or not, much of it goes back to August 15, 1971, when President Nixon “temporarily” broke the Bretton-Woods treaty, the last remnant of the gold standard which disciplined the US government from spending too excessively. The gold standard put the government in a fiscal straitjacket of sorts, and much of our recent political history is the President and Congress wriggling out of every constraint put on their spending. Still, it is remarkable that so many long-term negative trends can be traced to this event, that there is a whole website devoted to the problems created downstream from this decision.  It is worth a visit.  Here is just one chart, that is somewhat dated, that shows the trend since “the crime of ’71” through 2015.  Incidentally, if updated, FED inflation just exceeded 3,000%!

While Fitch is surely correct about our political dysfunction, demographics play a critical role because these systems were designed years ago as a “pay-as-you-go system.”  That is, what you pay into programs like Social Security wherein your contributions funded your parent’s benefits, and your children are funding your current benefit.  There is no trust fund or “lockbox”.  In fact, what is being paid out today is more than is coming into the system, causing the trustees of Social Security to become net sellers of treasury bonds and running negative cash flow.

In 1940, shortly after the program began, about 42  people were working for every Social Security recipient.  Today it is below 3:1 and headed toward 2:1.  We have very large and expensive elderly populations which must now be supported by an ever dwindling number of young people.

Because of this, both Social Security and Medicare are heading toward insolvency.  Social Security under current economic assumptions, will run out by 2033.  Medicare is expected to run out as well.  Part A in Medicare is expected to go cash flow negative by 2025 and run out by 2031.

Fitch does not even mention much of this problem, but they hint at it by the expectation of constant growth in deficits.  If these giant systems go negative, the US government will either have to borrow or print vast sums to make up the difference.  Hence, deficits are structurally on a path to grow rapidly.

Does that sound like a sound financial system to you?  Was Fitch out of line to point much of this out?

Look at the trends in deficits that have occurred well before our “entitlement” systems go bust.

Notice that a return to “normal” being touted by the Biden defenders, leaves us with a deficit about where it was during the height of the financial crisis in 2008-2009.  That does not say a lot of good things about “normal” when normal is equal to the greatest financial crisis of our era.

In the marketplace, lower-quality borrowers normally have to pay more to borrow than higher-quality borrowers. They are a greater risk. Hence, this move by both rating agencies likely means the US government will have to pay more to borrow.  With rates already high, interest cost will soon be the largest budget item, eclipsing defense.  The sheer volume of government borrowing risks “crowding out” the needs of the private sector for funds as well.

It is important to note that higher rates not only make it more difficult for the government to borrow but for all the rest of us in the private sector.  As rates rise, we run the risk of recession, and during that event, deficits run wild.  Revenue coming into the government collapses while “social entitlement spending” soars as people fall into the social safety net.  We are literally getting to the point where we can’t afford to run the risk of recession.  But since politicians can’t outlaw the business cycle, an even more severe deficit crisis looms ahead.

To be fair, both parties are responsible for where we are financially speaking.  Republicans used to tout themselves as “fiscally responsible”, but on the rare occasions they have held sway in both Congress and the Presidency, they could not reform government either.  Balanced budgets, which used to be a staple of conservative rhetoric, never seemed to be argued with the urgency it deserves.  Legacy conservative leadership has learned to lose gracefully and the insurgent MAGA movement has avoided the subject.

Democrats have been more at fault, particularly their demagoguing of any attempt at entitlement reform. It always seems a variant of “pushing grandma off a cliff.”  Even worse, with full knowledge of the financial weakness of these key programs upon which millions depend, they have advanced even more new programs, spending and wasting billions.  It would seem at the least, if you are going to make people dependent on the government, you better be damned sure the government is well-run and solvent.

Unfortunately, that is not the case.  Barring major reform, fiscal trends in the future do look quite negative.

The latest number from the Congressional Budget Office suggests that US debt is now on track to rise $5.2 BILLION per DAY for the next 10 years.

By 2033, US debt is projected to hit a record $50 trillion.

Likely over 20% of government revenue will go toward interest expense. This will expose the silliness of the expression, ” We owe it to ourselves.”

Between bankrupt entitlement systems that will have to be funded and soaring interest costs, there won’t be much left of the budget to fight over.

charts courtesy of the Kobeissi Letter

The “deficit problem” is really a derivative of a spending problem.  There would be no borrowing excess without a deficit, and there would be no deficit with excessive spending.

Today, government spending, as a percentage of output, during peacetime, hovers at the peak of World War II.  After WWII, the country was united, we had a Baby Boom, and the US stood dominant in the world markets.  We also had some conservative governance as chronic deficits did not start until the 1970s.  We were able to pay down the debt.  Now we face a demographic catastrophe and fierce competition from China.  We won’t have favorable circumstances to pay down our debt.  On the contrary, it will get worse.

How the world that uses US Treasury Bonds and the US dollar as their “banking reserve” will take all these negative trends remains to be seen.  Maybe they will want a reserve that can’t be inflated into oblivion.

No, Fitch got it right.  The US government is no longer a AAA credit.

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How Can Mail-In Voting Be ‘Secure’ When Postal Theft Is Rampant thumbnail

How Can Mail-In Voting Be ‘Secure’ When Postal Theft Is Rampant

By Shawn Fleetwood

Democrats’ deceptive talking point that universal mail-in voting is completely “safe” and “secure” is collapsing as postal theft becomes rampant throughout the country.

Within the last week alone, CBS News Chicago released several articles detailing a series of incidents involving mail theft and crime throughout the Windy City. On July 31, for instance, the outlet reported blue drop-off mailboxes in Frankfort and Orland Park “were cut open by thieves,” with local law enforcement advising residents to “monitor their financial accounts or credit profiles for fraudulent activity.”

On the same day, CBS News Chicago revealed it obtained data from the U.S. Postal Service (USPS) purportedly showing that the agency “hadn’t been keeping track of arrow key thefts until 2021” and “hadn’t made a single arrest for an arrow-key-related theft between 2020 and March 2023.” For context, arrow keys are used to open blue drop-off boxes and larger mailboxes found in apartment complexes or condos. An official with the U.S. Postal Inspectors, USPS’s law enforcement arm, claimed he felt such information “might not be 100 percent correct.”

CBS News Chicago also released two additional articles in the following days detailing other mail-related crimes in the city.

But Chicago is hardly the exception. In fact, the city is a microcosm of the rampant mail theft increasing throughout the nation.

In May, USPS announced it was enacting a series of countermeasures designed to crack down on what they described as “rising mail theft, robberies of carriers, change-of-address fraud and counterfeit postage.” According to Reuters, these policies included installing 12,000 “high-security blue collection boxes” throughout the country in order to “make access more difficult for criminals” and replacing 49,000 “antiquated arrow locks with electronic locks” to stop mail theft.

“USPS also said there have been more than 25,000 reported thefts from mail receptacles including blue collection boxes in the six months ending March 30 compared with 38,500 for all of 2022,” the report reads. A local Florida news outlet separately reported last week that Postal Inspector arrests for mail theft and fraud have declined since 2018, despite an increase in such crimes.

But how could this be? The American public has been assured time and again by Democrats and their legacy media allies that there are no risks to voting by mail and that the practice is totally secure. Sure, there are numerous examples of mail-in voting gone wrong, but those are irrelevant, right?

The reality is that Democrats care about secure elections about as much as they do the well-being of the American people. Widespread, unsupervised mail-in voting is merely a tool that allows leftist activists to harvest low-effort votes. Along with the use of well-funded, left-wing nonprofits, the Democrat Party election machine is able to run highly partisan voter registration and get-out-the-vote campaigns that accrue them an advantage over Republicans ahead of Election Day.

At the end of the day, Democrats don’t care about the security in-person Election Day voting brings or the integrity of U.S. elections. All they care about is acquiring and maintaining power. If that means embracing risky voting policies like mail-in voting, then so be it.

*****

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

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Getting Conservative History Straight thumbnail

Getting Conservative History Straight

By Paul Gottfried

Matthew Continetti: The Washington Post’s go-to authority on conservatism

Washington Post reached for superlatives last year in describing Matthew Continetti’s The Right. This voice of the establishment Left explained that Continetti, besides being an AEI senior fellow and a one-time distinguished editor of the Washington Free Beacon, may be the premier intellectual historian of the American Right. Continetti’s admirers found something exceptional in his analytic examination of his controversial subject. He spared no effort telling us a harsh truth: American conservatism is beset by right-wing extremists, like the hoi polloi who just “can’t be weaned away” from Donald Trump. This movement also includes other more conventional conservatives who are putting up with extremism in their ranks. Conservatives need vigilant gatekeepers, and Continetti believes he is up to the job.

According to the Post, “Continetti tells a story of conservatism that has often been marked by an elite inability or unwillingness to police extremism, and at times an active embrace of it.” Moreover, “in Continetti’s telling, those events partly represented long-festering tendencies inside the movement and the GOP. When racist, white supremacist, and alt-right elements sought to violently overturn democracy, he writes, ‘all of the unreason and hatred that had been slowly growing in the body of the Right burst into the open.’”

Supposedly these telltale tendencies did not first emerge in the last few years. Repeatedly falling prey to its own extremism, ”the right’s noninterventionist streak during the lead-up to World War II too easily collapsed into Charles Lindbergh’s antisemitism and flirtation with Nazism. The anti-communism of the 1950s too easily shaded into support for Joe McCarthy’s witch hunts.” Continetti just can’t get certain facts straight. For example: Conservative anti-Communism did not collapse into “McCarthyite witch hunts.” Many of those whom the late Wisconsin senator accused of being Communist collaborators or unreliable government workers for security reasons, were exactly what McCarthy and congressmen of both parties stated they were. Not only the conservative researcher M. Stanton Evans but the more centrist historian Arthur Herman demonstrates that the investigations of McCarthy and his colleagues were usually something more than “witch hunts,” although these hearings were not always conducted as dispassionately as they might have been.

Further, there is a superabundance of scholarship by widely respected historians Wayne Cole and Justus Doenecke that proves that neither Nazi sympathy nor hatred for Jews was a mainstream sentiment in the America First movement. Although Lindbergh and his associates gravely underestimated the danger posed by Nazi Germany, Nazi ideology had nothing to do with their position. America Firster Hamilton Fish, the congressman from FDR’s district in upstate New York, was an early advocate of black civil rights; and another prominent America Firster John Borah, an Idaho U.S. Senator, was a left-of-center Progressive. Many members of America First, who opposed having the U.S. enter the European war between 1939 and 1941, came unmistakably out of the Left.

Those who were antiwar were understandably upset that the American government pulled the country into World War I, a bloodbath that ended in a grossly unjust peace treaty. These anti-interventionists mistakenly viewed Hitler’s romp across Europe as a repetition of the struggle among the European Great Powers that erupted in 1914. But I wouldn’t expect Continetti to delve very deeply into such matters. As the Post’s go-to authority on conservatism, Continetti may not have to worry about irksome historical details.

New York magazine loves Continetti’s scholarly insights almost as much as does the Post: “Continetti, after studying the intersection of conservative thought and politics over the last century, finds cranks and bigots were there all along, hardly powerless, and frequently working hand in hand with Buckley and other conservatives who had supposedly banished them.” It is easy to understand why Continetti has such fans. He tells the “opposition” exactly what it wants to hear. But he also receives from the conservative establishment (remarkably enough) equal honors. For several years Continetti occupied among the Fox news Allstars the position that had been held by his father-in-law Bill Kristol. This occurred after Bill had unequivocally joined the Left. Matt, who didn’t bother to change sides, is now basking in the exuberant approval of the liberal and conservative establishments alike.

If this historian of the Right was less fixated on his left flank, he might have raised some obvious questions while talking to the Washington Post. For example, he might have inquired whether anyone there was playing a similar gatekeeping role to the one he’d assumed for the Right. Does the leftist national press go after those on its left for being too extreme? Do the Post’s editors denounce its own left wing in language as abrasive as that which Continetti hurls at Trump and Trump’s supporters? It would also be fair to ask whether the Post would care about Continetti’s historical opinions if he didn’t devote such energy to kicking around the Right. There is a vast literature on the American Right, which the Post’s editorial board has certainly never praised as extravagantly as it has Continetti’s modest achievement. But then most self-described conservative historians of the American Right (and I can think of multitudes) don’t try to sound like the Post’s editorial page.

Finally, I would note that Continetti and his book easily fit the pattern that John O’Sullivan ascribed to organizations when this esteemed conservative journalist gave as his “first law”: “All organizations that are not actually right-wing over time become left wing.” O’Sullivan’s law, we may assume, describes authors and histories as well as other entities.

*****

This article was published by American Greatness and is reproduced with permission.

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Let’s Get Serious About Eliminating The Department Of Education thumbnail

Let’s Get Serious About Eliminating The Department Of Education

By Dr. Thomas Patterson

“The Department of Education shall terminate on December 31, 2023”.  If you’ve read this far, you have completed HR899, introduced by Rep.Thomas Massie.

Abolishing the DOE isn’t a new idea. The department was created in 1979 by the Carter administration, fulfilling a campaign promise to the NEA, the teachers union, which in turn gave him their first-ever presidential endorsement.

But skepticism over the department was present even at its inception. The bill passed by just four votes in a heavily Democratic House. Ronald Reagan, always concerned about over-centralized power, immediately campaigned to unwind it. Several Republican education leaders since have endorsed its elimination.

But, 1979 hardly marked the beginning of a glorious new age for American education. Per pupil, spending on education since then has more than tripled, inflation adjusted, but there is little to show for it.

Achievement scores have been stagnant and still lag behind many of our peer nations in the developed world. The racial gap in academic achievement persists in spite of the Department’s high-profile efforts. The bureaucrats and interest groups receiving the funding are fine with it, of course, but for the rest of us, it hasn’t accomplished much.

The DOE isn’t really designed to make an impact. It doesn’t establish or approve a curriculum. It doesn’t operate one school or educate one student. It doesn’t administer or create tests. It doesn’t establish standards for colleges and universities. We wouldn’t want it to do any of those things, but it naturally raises the question: is the DOE needed at all?

The Department has over 4000 employees who do research and write policy papers on education that are read mostly by each other. They administer the beleaguered student loan program and federal aid for education.  Over 500 workers toil in the Office of Civil Rights.

Senator Joni Ernst notes that 94% of DOE‘s staff were deemed nonessential during a government shutdown. As one official summarized “It really is just a grant-making entity with a huge bureaucracy.“

Americans rightly respect the importance of education and are apprehensive about failing to support anything labeled “education”.  The Department doesn’t stir public animosities like Justice, Homeland Security, and other cabinet departments often do.

  1. Luke Wood, a professor of education at San Diego State University, asserts the attempt to eliminate the DOE has nothing to do with federalism or any legitimate substantive argument. No, the real motivation is…racism!

Yes, those darn Republicans are at it again, advancing unrelated pseudo-arguments to provide cover for their race hatred. They are engaging in “racelighting”, i.e. racial gaslighting which is an “act of psychological manipulation where people of color receive racial messages which distort the realities and lead them to second-guess themselves”.

Opponents claim HR899 is just an attempt to shape curricula that teach a “fairy tale“ history, omitting the ills of slavery as well as ignoring Jim Crow, miscegenation, and redlining. Furthermore, it is purposely intended to strip civil rights protections for minority students.

Yikes! Just being around Republicans, you would never imagine that they are such over-the-top bigots. Then again, maybe it is Professor Wood and his ilk who are the racial dividers, seeing racism as the explanation for nearly everything.

If they are so concerned about the civil rights of minority students, why not embrace school choice and charter schools?  These reforms have demonstrated their capability to actually improve educational outcomes and lift children out of poverty.

Some see HR 899 as a quixotic endeavor. Maybe it is. Bureaucracies, whatever their failings, are skilled, aggressive, and usually successful at defending themselves.

But there is one overarching reason why the DOE needs to go. We can’t afford it.

America is in big trouble financially. We have normalized intergenerational fiscal theft to finance so much wasteful, politically motivated spending that we are now $32 trillion underwater. Interest on the debt is crowding out other priorities and $50 trillion is in view.  Still the Biden administration, with an election looming, continues to propose yet more new spending programs.

We should instead be desperately seeking out nonessential expenditures that could be cut without any significant harm. The Department of Education is an ideal place to start.

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Arizona News: August 8, 2023 thumbnail

Arizona News: August 8, 2023

By The Editors

The Prickly Pear will provide current, linked articles about Arizona consistent with our Mission Statement to ‘inform, educate and advocate’. We are an Arizona based website and believe this information should be available to all of our statewide readers.

Arizona Lawmakers Share Concerns With Election Procedure Manual Development

Goldwater Institute Education Expert Fact-Checks Hobbs’ ESA Claims

Arizona Democratic Lawmakers Say Border Crisis Is Sensationalized

Arizona AG Fights To Keep Government Collusion With Social Media Companies

Attorney General Mayes Fighting Idaho’s Travel Ban For Minors Seeking Abortions

AG Candidate Hamadeh Appeals To Arizona Supreme Court For New Trial

Arizona plays starring role in latest Trump indictment

Why Proposed Rural Groundwater Control Legislation Is Bad For Arizona

Poll: Arizonans want homeless off streets, hint at distrust of spending

Coyotes: The lynchpin to human smuggling operations

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A World Dedollarized is Gold Remonetized thumbnail

A World Dedollarized is Gold Remonetized

By Peter C. Earle

From August 22 through 24th, an extended coalition of over 40 nations which has become known as BRICS+ will meet in Johannesburg, South Africa. Among the likely topics of discussion is the feasibility of setting up a jointly-owned international financial institution. It would be funded by gold deposits, issue a currency, and extend loans tied to the spot value of gold. There are substantial reasons to doubt the workability of the growing consortium’s plan. But to dismiss it summarily, whether as bad economics or rote anti-American propaganda, is to dismiss a moment five decades in the making.

Throughout the 1990s and into the early dawn of the 21st century, national governments looked down upon a world they credited themselves with creating. A Federal Reserve-engineered ‘soft landing’ in the mid-1990s buttressed the perception of monetary policy as a perfectable science. The Third Way – not free markets, but a hampered, highly regulated mixed economy – had outlasted and arguably defeated Communism. Technological innovation was vaulting beyond anyone’s wildest expectations. Space was at the forefront of science again, with the launch of the Hubble Space Telescope and construction starting on the International Space Station. Protease inhibitors, bioengineered foods, and the first hybrid vehicles arrived.

US Dollar Index (DXY), Fall of USSR – present

(Source: Bloomberg Finance, LP)

At that time political figures all around the globe, elected and appointed, surveyed a world built upon paper money and financialization. They looked upon it with great, in many cases smug, satisfaction. And among other self-congratulatory measures, they began selling their long-held gold reserves – by the ton. England, the Netherlands, Australia, Belgium, Canada, and even precious metal stalwart Switzerland liquidated physical stocks of gold. The US did as well, a bit later. Some explained those sales as a means for diversifying central bank holdings. Others claimed that the proceeds would benefit the poor or be used to pay down government debt. A new millennium was at hand, the towpath to which was paved not by soft yellow metal but by batteries of workstations armed with Pentium III processors, silently churning out solutions to partial differential equations.

Twenty-five years later the poor are still poor, national debt is at record levels, and the price of gold in US dollars is eight to ten times the price that governments and central bankers sold almost 5,000 metric tons for. Multi-trillion dollar wars have been fought to inconclusive ends: not lost, really, but far from won. Orders of magnitudes typically only found in astronomy textbooks,  invoking trillions (and in Japan, quadrillions) regularly surfaced in the descriptions of monetary and fiscal policy measures of developed nations. Then, on the heels of a highly politicized response to a public health event, inflation returned from a four-decade sojourn. One dollar printed during the Y2K scare today purchases roughly 56 percent of what it did then.

Nevertheless, the US dollar has remained the indisputable and essentially singular global reserve currency, acting as a medium of exchange, unit of account, and settlement instrument for the lion’s share of daily international trading. Despite policy missteps and distractions, the Fed has arguably performed better than most of the world’s other central banks: in the land of the blind, the one-eyed man is king. But the weaponization of the US dollar in 2022 has exposed greenback dependency as a vulnerability of existential proportions. With the banning of most Russian banks from the Swift (Society for Worldwide Interbank Financial Telecommunication) messaging system, and despite the dollar’s advantages for use in global trade, a line was crossed.

Despite petulant insistences to the contrary by the most well-known economist today (regrettably), a wave of de-dollarization is very much underway. It would be interesting to know how Krugman, who scoffed at the description of ejecting a nation from SWIFT as “weaponization,” would characterize French Finance Minister Bruno Le Maier’s dubbing the move a “financial nuclear weapon.”

None of this means that the dollar is “doomed,” and certainly not imminently. Neither is the US dollar “dead.” But its use as a sanctioning instrument likely represents the crossing of a rubicon whereby nations habitually using the dollar need to have currency alternatives ready. US Treasury Secretary Janet Yellen, even while citing the entrenched nature of the dollar in global trade, conceded that “diversif[cation]” in global foreign exchange reserves is underway earlier this month.

The argument that few if any other nations have currencies (and/or economies underlying them) that meet the requirements of a global reserve currency is a cogent one. Of course, one needn’t necessarily replace the dollar. What matters is having a ready means of transacting outside dollar-based systems and institutions in exigent circumstances: to maintain continuity of trade, and to hedge against the policy errors of central bankers. What is the most marketable, least manipulable means of shifting away from the dollar (and possibly back to it, once tensions have abated) with the lowest switching costs? Gold.

Gold in USD, Fall of USSR – present

(Source: Bloomberg Finance, LP)

Saudi Arabia, not a particular fan of the current Presidential administration, has indicated that it will invest billions of dollars into its expanding gold sector over the remainder of this decade. India recently launched an international gold bullion exchange. The imposition of (almost) unprecedented non-pharmaceutical interventions in early 2020 saw the price of gold rise to record highs. At the end of last year, central banks were buying gold at the fastest rate since 1967As of May, 70 percent of central banks indicated believing that gold reserves would increase over the next year. Experimentation with using gold alongside dollarsand as money, including in some innovative, familiar formats here in the US, has been growing in just the last few years.

Specific details on the proposed currency union have not yet been released. They may not yet exist outside the minds of their promoters. Suffice to say that drawing scores of nations together from different continents and cultures, with different histories and remarkably diverse resource endowments will be a heavy lift, organizationally speaking. Smaller members are likely to find their interests marginalized, with the resulting dynamic closer to what’s seen in the United Nations than, say, OPEC. And few of the proposed members have confidence-inspiring track records where property rights are concerned.

The form and function of the BRICS+ financial institution, if any is indeed forthcoming, is of secondary importance. What matters is that the slow creep of de-dollarization is, on its flip side, an inexorable push toward the re-monetization of gold. And whether that means sound money through innovation or pressuring global central banks to reform their practices, those outcomes are welcome, to say the least.

*****

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

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Household Names Helping Ban Gas Stoves: Patient Zero thumbnail

Household Names Helping Ban Gas Stoves: Patient Zero

By Ken Braun

Author and New York Times columnist Thomas Friedman wrote The World Is Flat: A Brief History of the 21st Century. The 2005 book wasn’t advocating the agenda of the Flat Earth Society, and Friedman likely hasn’t used the proceeds to help fund such a ludicrous group. But the charitable foundation he runs with his wife has done something almost as silly by giving money to the Rocky Mountain Institute (RMI), one of the nation’s most radical anti-energy, left-wing nonprofits.

The Friedmans are not alone. General Motors, Fed Ex, United Airlines, Amazon, Bank of America, and dozens of billionaires, major corporations, and big foundations have become huge donors to RMI. In 2002, the Rocky Mountain Institute was a kooky, enigmatic group with just over $5.1 million in total revenue.

A lot changed after that.

A December 2022 study published by the RMI asked a scary question: “What do secondhand smoke and gas stoves have in common?”

Just weeks later, in January of this year, a commissioner with the Consumer Products Safety Commission cited the RMI study and suggested the government agency might implement a federal ban. By the first week of May, New York notched the dubious distinction of becoming the first state to prohibit the installation of natural gas stoves and furnaces in new buildings and home construction.

Improbably, the once ignorable RMI has launched a legitimate policy war against natural gas, a low-carbon, abundant source of American-produced fuel.

For most of the prior 40 years, RMI’s impact was difficult to notice. The CNN website search engine appears to hold stories at least as far back as 2011, and a June 2023 search for “Flat Earth Society” yielded only 11 references. A search for “Rocky Mountain Institute” revealed only 14 stories in the database.

But 11 of RMI’s CNN references were from 2019 or later. The Rocky Mountain Institute’s influence and budget have exploded in recent years. In 2007, the group reported almost $9.7 million total revenue. Similarly, in 2012, the year before RMI first appears in the CNN search database, it reported total revenue of $10 million.

Then, the money started flooding in, making huge leaps each year. RMI received almost $16.5 million in 2013 revenue, was up to $29.5 million for 2016, went past $53.5 million in 2019, and topped $115 million in 2021.

Since 2012, the nonprofit has grown from 50 employees to more than 600. In addition to multiple locations in Colorado, RMI now has offices in Oakland, California; New York City; Washington, DC; and Beijing, China.

Patient Zero: Amory Lovins

In 1982 the Rocky Mountain Institute was founded in Snowmass, Colorado, by physicist Amory B. Lovins and his former wife, Hunter Lovins. Amory remains chairman-emeritus of RMI, and his ideology still animates its policies. The RMI website hosts a page titled “Inside Amory’s Brain” that describes him as the “Einstein of energy efficiency” whose “earth-shaking ideas on energy security, efficiency, and renewables have changed the field for more than 40 years.”

Except for the dubiously flattering comparison, the rest of this is not inaccurate. Since at least the mid-1970s, Lovins has made it a habit to crank out crackpot ideas that hoodwink supposedly wise people.

The first of “Amory’s Classics” celebrated by RMI is “Energy Strategy: The Road Not Taken,” a 1976 essay he wrote for Foreign Affairs, the journal of the Council on Foreign Relations. He wrote it as a representative of Friends of the Earth.

His central goal was to convince the industrial world to ditch its use of “hard” energy technologies—coal, natural gas, oil, and (especially) nuclear power—and choose instead “soft” technologies, the so-called “renewables.” Ever since Lovins and RMI have promoted that big picture point.

“Recent research suggests that a largely or wholly solar economy can be constructed in the United States with straightforward soft technologies that are now demonstrated and now economic or nearly economic,” he wrote, in one of many points that were unintentionally prophetic.

Nearly a half century later, “recent research” from similarly gullible sources continues to project economic viability for weather-dependent energy. Solar and its intermittent power wonder-twin, wind energy, regularly get re-subsidized to the tune of hundreds of billions more dollars in this nation alone.

These money gushers are shrouded in increasingly lofty lies, such as the “Inflation Reduction Act,” and the supposedly “soft” solar technology is being built at hard-labor camps in China.

A critical feature of the wind and solar fable today (and probably back in 1976 as well) is a flawed measuring stick called the “levelized cost of energy” (LCOE). In simplified terms, LCOE divides the cost of obtaining power over the lifetime of the power source (construction, maintenance, fuel inputs, and so forth) by the amount of power produced.

LCOE is an imperfect but useful comparison for power systems that run on stored fuel that can be dispatched when needed. But LCOE is grossly misleading when used to compare these mostly reliable systems to those that run on weather-dependent energy.

The real value of a powerplant is not that it can generate low-cost electricity: a lightning bolt can do that exceedingly well. Instead, what makes an energy system truly useful is that it can generate that power when it is needed. Lightning bolts, the wind, and then sunshine follow the demand of Mother Nature and celestial mechanics, not consumer demand.

Even though the value of a watt is inextricably related to when it is created, RMI repeatedly misuses LCOE to sell the supposed superiority of non-reliable power.

“Higher amounts of variable renewable energy on the system also creates a mismatch between energy demand and supply, increasing the risk of renewable curtailment—the forced reduction in power output—when other inflexible generators like coal and nuclear are unable to ramp down during periods of high renewable availability,” wrote RMI researchers in a February 2018 report.

Translation: “The problem with reliable energy is that it’s TOO reliable and wants to keep working even when our weather-dependent princesses decide to wake up and help out.”

Imagine the Rocky Mountain Institute as a diner: “Due to their willingness to work for slightly less, we’ve hired some cooks who show up whenever they want to. But our labor market has been ruined by the more expensive, yet punctual and reliable cooks, who inflexibly refuse to punch out when the cheaper staff decides to come in.”

Nonetheless, they keep the faith.

January 2018 RMI report asked: “Will 2018 be the year when solar power reaches so-called grid parity, providing a cost of energy over its operating life that is equal to or less than the cost of energy from existing conventional energy sources?”

Their dubious answer: “This levelized cost of energy (LCOE) comparison informs new grid investments and, as a result, the evolving resource mix of the grid. . . . Looking across the energy landscape, there is reason to believe solar’s time truly has arrived.”

Yes, just as in 1976, solar is STILL the energy of the future! And . . . always will be.

*****

This article was published by Capital Research and is reproduced with permission.

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The Stealth Bull and Bear Markets In Gold and Bonds

By Mark Wallace

Almost a half-century ago, legendary trader Richard Dennis of C&D Commodities put on a famous trade:  long (soy)beans and short bonds.  The trade reflected the established bull market in commodities and bear market in 30-year U.S. Treasury Bonds.  It was an era of high inflation (peaking at 14 percent during the disastrous Carter Administration).  Bonds (and equities) continued sinking until 1982, whereupon the markets reversed, with commodities moving to the doghouse and equities and bonds rallying year after year.

Equities are still in their 41-year rally mode, with the S&P 500 trading at 4505.14 (as of this writing — it will surely be different by the time you are reading this) as against a 52-week high of 4607.07 and an all-time high at 4808 in late 2021.

Bonds are a dramatically different story.  Legendary and now-deceased stock market analyst Richard Russell long contended that the bond market is both much more important and much more dominated by savvy investors than the stock market.  Bonds were trading at a low of 102 in March 2004 (compare to a low of around 55 in 1982) and rose with various advances and setbacks to a high of 190 in March 2020.  (These numbers are based upon nearby Treasury Bond Index futures).

The last three and one-half years have not been kind to bonds.  They fell to 117 in October 2022 and as of this writing are at about 120.  The 70-point drop from the 190 high to 120 is about a 37 percent drop.  It would be as if the S&P 500 dropped from its high of 4800 to about 3000.  In other words, bonds have been in a slow-moving crash — a fairly nasty bear market.  Yet, there are relatively few stories in the financial press or the mainstream media about this development.  It can fairly be termed a “stealth bear market.”

Gold has been very much a despised investment since the 1980 peak of over $800 per troy ounce.  In September 1987, just as the stock market was getting ready to crash, gold had crawled back only to about $465.  From there, things only got worse for the yellow metal.  In June 2001, gold put in a low of approximately $265.  Gold then commenced a long but little-noticed bull market, rising in fits and starts to $1923 in September 2011 (all gold quotes are based on nearby Comex futures).  Disappointment followed again, with gold falling for the next five years back to $1045 in December 2015.

After 2015, gold commenced a slow but relatively steady advance to $2089 in August 2020 (an almost precise doubling of its price since December 2015).  During the last three years, gold has been see-sawing between a low of $1618 in November 2022 and, most recently, at just around $2000.  The fact that gold has pretty much held its own during the last three years is all the more remarkable because the U.S. Dollar was rising sharply during that period, making gold more expensive for the rest of the world.  In May 2021 the Dollar Index was at about 89.5.  It rose sharply to 114 by September 2022, due to the Fed’s actions in raising interest rates.  At last glance, the DX was at about 102.

The total market return on exchange-traded funds invested in shares of gold mining companies during the 2015-2023 period mirrors the stealth gold bull market.  SPDR Gold Shares (symbol GLD) had a total market return of a disappointing minus 10.67 percent in 2015.  Thereafter, the total market return was largely excellent:  8.03 (2016), 12.81 (2017), minus 1.94 (2018), 17.86 (2019), 24.81 (2020), minus 4.15 (2021), minus 0.77 (2022) and 8.94 through the first quarter of 2023.

The relative lack of comment in the financial press about the significance of the U.S. Treasury Bond bear market is matched and indeed perhaps even exceeded by the near-total radio silence about the significance of the post-2015 gold bull market.

The absolute worst investment to have during a long period of rising inflation is a 30-year fixed-interest rate bond.  Inflation consistently eats away at the real (i.e., after inflation) value of the bond, and by the time you get your money back after 30 years, it’s worth far less than the inflation-adjusted value of what you paid to buy it.

Gold, on the other hand, is the classic inflation hedge.  During the catastrophic hyperinflation of Weimar Germany in the early 1920s, the real, after-inflation return on gold was about 100 to 1.

So what’s the takeaway from all this?

The market in U.S. Treasury Bonds is screaming at us that the Fed will, in the end, capitulate to inflation and reluctantly accept regular, periodic inflation above its 2 percent annual target over a policy of raising interest rates to bring inflation back down to 2 percent.  The Fed will do this because it prefers inflation above 2 percent to another Great Depression.  The Fed talks a good game about “doing whatever it takes to bring down inflation” but the bond market’s price action over the last three years tells us the bond market doesn’t believe what the Fed is saying publicly.

Markets, especially wide and deep markets like the bond market, know more about the future than you or I do.  Occasionally markets do get things wrong — for example, the scary 1987 Crash did not generate a new Great Depression — but they rather quickly correct.  The fact that U.S. Treasury Bonds have been declining for over three years is of enormous significance and is not some kind of mistake.  By parallel reasoning, the gold stealth bull market is not some kind of mistake.

Equities are likely to re-price to a much lower level during the upcoming months and years because high-interest rates and inflation represent an unfriendly environment for them.  The Cult of Equities that’s been the road to riches over the past 40 years may be nearing its final end.  When it finally does end, when the final top is finally put in, what follows will confound large portions of the public and the investment community.

Consider this:  when the British stock market collapsed during the South Sea Bubble in the 1720s, stocks went into a bear market that lasted for over 60 years.  Across the pond in Tojo-Land, the Japanese Nikkei put in a top just below 40,000 in 1989.  Today, 34 years later, in 2023, the Nikkei was at 31,975 as of this writing.

As a nation, we are probably more politically divided now than at any time since the Civil War.  However, you can be sure that no political party wants the economy to collapse into a depression while it is holding the reins of power.  This goes hand-in-glove with the analysis that the Fed when push comes to shove, will choose inflation over financial collapse and depression.  That’s what the bond and gold markets are telling us right now, and that’s what common sense is telling us.

There have been numerous reports in the press about “slowing inflation”, a “soft landing” and a “possible recession”.  Suffice it to say that if the bond market and its highly sophisticated investors believed these things, the bond market would be rallying strongly, not continuing to erode week by week and month by month.

Still, markets are unpredictable, and “Black Swan” events can and do occur and catch everyone by surprise (including a very large and sophisticated bond market).  If I had to guess, the greatest risk may be a “straw that broke the camel’s back” – a type of scenario caused by the higher interest rates now being engineered by the Fed.  The amount of credit and debt in our society is of gigantic proportion, and if major chain-reaction defaults started occurring all of a sudden as the result of rising interest rates, there might be just too many fires for the Fed to put out.  If the initial result were a severe recession or another Great Depression, the printing presses will be used to extricate the Federal government and the country from the catastrophe (because history tells us the alternative is politically impossible and unacceptable), likely bringing gold to the fore again as the premier safe haven — unless it is confiscated once again as it was in the 1930s.

All food for thought.

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Latest ‘Facebook Files’ Confirm Biden Admin Censors Think You’re Too Stupid To Govern Yourself thumbnail

Latest ‘Facebook Files’ Confirm Biden Admin Censors Think You’re Too Stupid To Govern Yourself

By Jordan Boyd

The White House put immense pressure on the Big Tech company to limit what Americans were exposed to online.

President Joe Biden’s White House demanded an increase of censorship from Facebook in 2021, new emails reveal — confirming once again that the administration believes Americans are stupid.

In part three of what he deemed the “Facebook Files,” Republican Rep. Jim Jordan released more communications obtained from Facebook detailing the immense pressure the Big Tech company received from the executive branch to limit what Americans saw online.

Emails show Courtney Rowe, then-White House director of strategic communications and engagement for Covid-19 response, praising Facebook in April 2021 for offering the White House suppression data “broken down by region and demographics.” One sentence later, she petitioned the Big Tech company to answer “how do we work with you all to push back on it[?]” because she believed that “if someone in rural Arkansas sees something on FB, it’s the truth.”

Jordan said Rowe “mocked Real America’s ability to determine what’s true and what isn’t” because the Biden administration “didn’t think you were smart enough to decide for yourself.”

In April 2021, Biden’s then-Director of Digital Strategy Rob Flaherty also sent Facebook several suppression demands to censor right-wing commentators and publications. According to Flaherty, outlets like the Daily Wire are “polarizing” and not “authoritative news source[s].”

“You wouldn’t have a mechanism to check the material impact?” Flaherty questioned.

On behalf of the White House, Flaherty even asked Facebook to reduce visibility for the New York Post, which debuted reporting about Hunter Biden’s “laptop from hell” and Biden family corruption six months earlier.

“I’m curious – NY Post churning out articles every day… What is supposed to happen to that from Policy perspective. Does that article get a reduction, labels?” Flaherty asked the censors.

Flaherty eventually concluded that his preference for controlling online speech was to convince Facebook to “kick people off” of the social media platform.

“We’re keen on what platforms are doing to reduce the spread of bad information, that platforms are not funneling people towards bad content,” Flaherty wrote. “That’s our primary concern.”

The censors at the Silicon Valley giant explained that they couldn’t “remove” every user or post deemed problematic by the White House but eventually agreed to demote certain posts even when the posts did not explicitly violate Facebook’s terms and conditions.

Facebook claimed that posts complaining about the “government overreach” of the Biden administration’s Covid jab mandates were reduced because they fed a “vaccine-negative environment.”

“The company ADMITTED to the White House that it reduced content of certain posts – even if the posts didn’t violate the company’s terms and contained TRUE information,” Jordan explained.

Weaponizing the censorship industrial complex against Americans isn’t the only time Biden and his Democrat cronies have revealed their belief that Americans are stupid and can’t think for themselves.

As early as 1988, Biden was telling voters to their faces that they were not credentialed enough to criticize him.

“I think I probably have a much higher IQ than you do, I suspect,” then-Sen. Biden infamously proclaimed to a voter who asked him to explain his lies about his academic track record.

The ruling regime’s contempt for Americans was made even more abundantly clear during the pandemic. While Democrats demonstrated their disdain for their voters with hypocritical visits to hair salons and fancy restaurants during the height of lockdowns, Biden tried to force Covid shots on hardworking Americans who he apparently thought were not educated well enough to thoughtfully reject the jab.

*****

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

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Team Biden Outmaneuvered by China?

By Eric Rozenman

U.S. policy toward China appears to be suffering from a belief in magic – that, for instance, withdrawing from Afghanistan would be a great idea; that Putin would be happy with a “minor incursion” into Ukraine; that the Chinese spy balloon was “silly;” that the mission of education and the military should be to ensure “equity,” leading one veteran to say that the US is “trying to out-pronoun our enemies;” and that America’s southern border, with agents trying to process reportedly 8,000 illegal migrants each day, thereby leaving vast swaths of land open to traffickers, smugglers, and terrorists, is “secure.”

Regrettably, the Biden Administration seems to be letting itself be outmaneuvered in countering the imminent threat of war posed by China’s leader Xi Jinping and his ruling Communist Party.

Three cases in point:

John Kerry, Biden’s climate envoy, landing in China in mid-July, declared that the country was doing an “incredible job developing renewable energy sources. He also asked it to reduce its world-leading coal-fired electricity production.

Not exactly likely. On January 24, 2022, the Chinese ruler told party leaders that carbon goals should not undermine energy or food supplies. China opens two new coal-fired generating plants a week, according to multiple reports.

Then there was Secretary of State Antony Blinken’s visit to China in June. Even before Blinken could deplane, Xi let Washington know who he thought was boss. When the secretary of state arrived — for the first trip to China by a top U.S. diplomat since 2018 — no senior Chinese official went to the airport to greet him: no red carpet, no ceremony. This non-encounter took place after Blinken’s journey had been postponed following the February shoot-down of a Chinese spy balloon that had snooped its way over many of the most sensitive military installations across the United States. Blinken swallowed the airport insult and met anyway with, among others, his Chinese counterpart and Xi himself. They held what the State Department called “a productive conversation, a real exchange.” Chinese officials likewise said the talks were “candid, in-depth, and constructive.” Good, so we have nothing to worry about!

Secretary of the Treasury Janet Yellen apparently thought so too. When she arrived on her pilgrimage ahead of Kerry in July, she actually bowed repeatedly, as Fox News showed—in the Chinese fashion of an inferior kowtowing to a superior—three times, “optics the Chinese love,” before Chinese Vice Premier He Lifeng.

Doing business

“Criticism of Yellen’s apparent obsequiousness was ‘just noise’”, Mary Lovely of the Washington, D.C.-based Petersen Institute for International Economics told Bloomberg News. The treasury secretary went to Beijing “to do business” and put guardrails up to decrease tensions and “manage” U.S.-China relations.

What have Xi and his hand-picked team atop the party-government pyramid been doing to install guardrails and manage the critical relationship? Here are a few recent illustrations:

  • The Wall Street Journal revealed that China uses Cuba for extensive surveillance of the United States and military training. Miles Yu, who was China’s policy advisor to then Secretary of State Mike Pompeo, wrote in a June 29 Wall Street Journal op-ed that “China’s spying installations and military training in Cuba reflect the Communist Party’s plans for global dominance”;
  • China maintains “police stations” in at least 53 countries around the world — as well as in Manhattan — from which, according to reports, to intimidate expatriate dissidents and others, and threaten them with “arrest” — meaning kidnapping and imprisonment in a Chinese gulag;
  • Former Canadian Conservative Party leader Erin O’Toole, in a speech to Parliament, said he had been told that Beijing used proxy agents to spread disinformation about his party via the Chinese-operated WeChat instant messaging service. This followed similar charges by parliamentarian Michael Chong;
  • The Chinese Communist Party hacked the e-mails of senior U.S. officials, including Commerce Secretary Gina Raimondo before her planned trip to China.
  • Beijing decided early in July to restrict exports of germanium and gallium, key elements in semiconductors and missile systems. China retaliated against U.S. trade restrictions, citing “national security”.

Xi’s real purpose

At home, Xi has continued to tighten party control over the economy even as economic growth has faltered and unemployment climbed. Why pursue antagonistic policies abroad and counter-productive ones at home?

J. Kyle Bass, the founder of the Texas-based hedge fund Hayman Capital Management, thinks it is due to China’s vulnerability to petroleum and liquid national gas sanctions. Bass said on July 12 that Xi’s objectives are not economic growth or good relations but rather to insulate China from outside sanctions and other pressure like that, orchestrated by the United States and NATO against Russia for its invasion of Ukraine.

According to Bass, in 2020, China possessed 100 intercontinental ballistic missile launchers, and last year, the tally reached 450. This year, he said, Fujian province, opposite Taiwan, opened 18 new air raid shelters, and a major military hospital, and conducted a large-scale blood drive.

Holding U.S. dollars, China “should be buying short-term Treasury notes,” Bass stressed. Instead, “the curve is going in the opposite direction.” Beijing is building its gold reserves.

“The day Yellen landed in China, Xi told the Eastern Military Command to prepare for war. I think it is highly likely he invades Taiwan,” Bass said. Not by 2027, as estimated by U.S. intelligence, but “in 12 to 18 months.”

Bass said he believes the United States and its allies can prevail against China in a conflict over Taiwan and its democratically-governed 24 million people, but only if everything needed for defense “is on the island on day one.”

Also, it must be added, only after American leaders drop their belief in magic and speak realistically to the public.

*****

This article was published by the Gatestone Institute and is reproduced with permission.

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Happy 111th Birthday, Milton Friedman, Your Wish Has Come True

By Jay Greene and Jason Bedrick

On the occasion of his “eleventy-first” birthday, the hobbit Bilbo Baggins famously disappeared. On July 31, we celebrate[d] what would have been the 111th birthday of another man who was diminutive in size but larger than life in spirit: Milton Friedman. Were he to reappear today, he would likely marvel at how much progress has been made on issues about which he cared so deeply.

In particular, Friedman would likely be amazed at the expansion of education freedom over the last year as well as the landmark Supreme Court decision to eliminate racial preferences in education.

In the past three years alone, more than 20 states have enacted new education choice policies or expanded existing ones, including eight states that are in the process of implementing Friedman’s vision of universal school choice.

And last month, the Supreme Court decided jointly in two cases brought by Students for Fair Admissions against Harvard and the University of North Carolina that the equal protection clause prohibits discrimination on the basis of race, including in college admissions.

For Friedman, these two issues were closely connected. He was convinced that black Americans could not obtain equality of opportunity unless they had access to school choice. But he also understood that if those educational opportunities were allocated with racial preferences, that system might help a few but would inevitably undermine access to quality options for most black Americans.

Friedman once remarked, “If you think that there is a way out of this by getting government to pass laws especially to benefit [black Americans] you are kidding yourself. That isn’t going to happen.”

The problem, he astutely observed, is that majorities pass laws and black Americans are a relatively small minority. It is unreasonable, he argued, to expect majorities to pass laws that would undermine their own interests while advancing the interests of a minority. As he put it:

Temporarily … affirmative action may benefit some blacks, some low-income people, but if you believe that Supreme Court decisions are going to be able to stop a majority of the population, which is prejudiced, from using this power to benefit themselves rather than the people who are disadvantaged, you’re kidding yourself. That’s not the way out.

Affirmative action may have elevated select members of minority groups, but it did so at the expense of others, particularly Asian Americans. According to author Kenny Xu:

In the case of Harvard, race is not simply used as a tiebreaker in admissions. A 2013 internal Harvard study revealed by the [Students for Fair Admissions] lawsuit showed that had Harvard only considered academics, Asians would make up 43% of Harvard’s student body. Adding legacy, athlete recruitment, “extracurriculars,” and a “personal” score lowered Asians to 26%. Finally, in the years the internal Harvard study looked at, Asians actually made up only 19% of the student body.

Even the supposed beneficiaries of racial preferences in college admissions are harmed by them in at least three ways. First, artificially advancing some applicants undermines incentives for achievement within their racial communities, as it detaches accomplishments from rewards.

Second, as the great economist Thomas Sowell (a former student of Friedman) observed, racial preferences lead to a mismatch effect that leaves “many blacks and Hispanics who likely would have excelled at less elite schools … in a position where underperformance is all but inevitable because they are less academically prepared than the white and Asian students with whom they must compete.”

And third, as Justice Clarence Thomas has argued, racial preferences “stamp [their beneficiaries] with a badge of inferiority” that “taints the accomplishments of all those who are admitted as a result of racial discrimination” as well as “all those who are the same race as those admitted as a result of racial discrimination” because “no one can distinguish those students from the ones whose race played a role in their admission.”

Friedman was very clear that meaningful progress depended on abolishing both racial discrimination and racial preferences:

We want a society in which people can celebrate their own special ethnic background. But that’s a very different thing from a society which somehow takes ethnic characteristics as a criterion for preference or lack of preference, from a society which moves away from the doctrine of color-blindedness to the doctrine of so-called affirmative action. That’s the problem.

There are many advocates within the school choice movement who agree with Friedman on the benefits of expanding educational freedom but somehow ignore his message about the harms of racial preferences. They favor private school choice, but only for urban school districts with large minority populations or only when programs are targeted toward low-income families. They favor charter schools, but only those that focus on minority students with “culturally responsive” models. They believe that students learn the most from teachers who share the same skin pigmentation and they seek preferential funding, training, and hiring of black teachers to accomplish this.

Friedman would be thrilled to see that all students, regardless of class, color, or creed, are now eligible for private school choice in eight states. But he would be aghast that some claiming to favor school choice would prefer that these opportunities be allocated with racial preferences.

Friedman had no objection to people maintaining strong racial and ethnic identities: “I believe it’s highly desirable for people to be able to pursue their own values, to have whatever ethnic values they want, provided they do it voluntarily and do not interfere with the freedom of others to do it also. We want a society of variety and diversity.”

But he would have objected vigorously to the idea that government policies, such as critical race theory in public school curriculum, matching the race of students to teachers, or racial targeting of education opportunities, were necessary to cultivate those group identities and achieve progress for members of those communities.

Friedman was once asked directly about this issue: “Don’t you think it’s through ethnic solidarity that many minority groups were able to make advances in the American society?”

To which Friedman replied, “Not in the slightest. If you look at the way in which ethnic minorities made advances, it was not through ethnic solidarity. It was through the free market.”

On Milton Friedman’s 111th birthday, we should celebrate the remarkable growth toward a free market in education that we have seen in recent years. But we should also heed Friedman’s warning that those benefits of freedom can only be enjoyed if we avoid the coercion of racial preferences.

*****

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

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The ‘Mainstream’ Media’s Radical Rebellion Against God thumbnail

The ‘Mainstream’ Media’s Radical Rebellion Against God

By Tim Graham

The line between radical activism and “mainstream” journalism has been obliterated, especially when it comes to the LGBTQ+ lobbyists. The war on traditional Christianity is on. It was splashed all over the front page of the July 25 USA Today.

The headline above the photograph was “Christian transgender man says fighting LGBTQ+ discrimination has increased his faith.” The big headline underneath was the trans man’s quote: “This is what I was supposed to be doing.

Zayn Silva was refused admission to a Christian seminary in New York and is part of a lawsuit trying to destroy any religious exemption for schools that hold true to biblical teaching. On the libertine Left, it’s believed God often cruelly “assigns” people the wrong gender at birth.

The large color photograph is Silva sitting in front of a stained-glass window at the First Presbyterian Church of Brooklyn, where he is an elder. The church members call themselves “intentionally inclusive.”

But it goes deeper than that. The “LGBTQ+ Fellowship” page on their website includes a video titled “Queer Mary, Trans Christ,” showing a “queer pastor” reading passages about “the cross-dressing Jesus” in “false eyelashes” from the book “Indecent Theology: Theological Perversions in Sex, Gender, and Politics.”

There is a word for this theology: heresy. But the word never surfaces in our secular press as they seek to undermine traditional religion in all its forms. Forsaking God is the objective.

The outfit gaining all this free publicity in USA Today calls itself the Religious Exemption Accountability Project, which is misleading. It’s a Religious Exemption Obliteration Project. Their website explains they “advocate for human rights while shining a light on the dangers and abuses of a major educational pipeline of white Christian Supremacy.”

There’s one nod to the religious-liberty counterpoint from Gregory Baylor of Alliance Defending Freedom. Baylor said some religious schools could have “very different perspectives,” but these lawsuits “are trying to diminish those choices.” In other words, activists like Silva can find a nominally Christian school that’s “intentionally inclusive,” but the lawsuit route is more appealing.

USA Today summarized its official disdain in the subhead: “Counterargument: Lawsuits threaten religious ‘choice.’” There can be no “diversity” of opinion. The new orthodoxy is secular and leftist.

On the same day USA Today campaigned on the front page, NPR’s “Morning Edition” aired a more balanced story on the battle inside the United Methodist Church, where a significant sliver of churches is leaving. NPR reporter Jason DeRose interviewed minister Glen Haworth, complaining the Methodists were “drifting from what he calls traditional biblical teachings” on homosexuality and marriage. “What he calls” is NPR’s subtle method of wanting to deconstruct the Bible.

NPR’s opposing view came from Grant Hagiya, president of the Methodist seminary in Southern California, Claremont School of Theology. He clearly set orthodox Christians on edge by suggesting the LGBTQ+ view is for “justice, something he believes even a medieval theologian could support.”

Hagiya claimed Thomas Aquinas “would say that if a law is unjust, it’s not a law. Laws are human-made. And they can be wrong, immoral. And we believe that this is true of this particular case of exclusion.” What Aquinas actually wrote is, “An unjust law is a human law that is not rooted in eternal law and natural law.” The libertines are at war with “eternal law and natural law.”

“Justice” in the eyes of the Left is defined as bending the arc away from the Bible (and the Torah and the Quran) and creating a new God that believes exactly what the Left believes, a malleable deity who evolves exactly as the Left evolves.

*****

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

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DOJ Indictment Of Trump Is A Declaration Of War Against American Voters thumbnail

DOJ Indictment Of Trump Is A Declaration Of War Against American Voters

By John Daniel Davidson

It’s not about Trump. It’s about criminalizing dissent and punishing the millions who voted for him — and warning them not to do it again.

On Tuesday, President Joe Biden’s Justice Department took the unprecedented step of indicting former President Donald Trump — Biden’s chief rival in the upcoming 2024 election — for repeatedly expressing his opinion that the last election was stolen, rigged, and unfair.

It’s an opinion millions of Americans share, and to which they are unquestionably entitled thanks to the First Amendment. That includes Trump, who has said repeatedly (and recently) that the 2020 election was stolen. He’ll probably keep saying it until his dying day, and he has every right to do so.

The idea that our Justice Department can indict someone, especially the sitting president’s main political rival, over speech that’s protected by the First Amendment is simply insane. It puts us firmly into banana republic territory, where tinpot dictators jail their political opponents ahead of election day to ensure their “reelection.”

Simply put, this indictment is nothing more than a declaration of war against American voters and their constitutional right to free speech. As Jonathan Turley noted on Twitter, “If you take a red pen to all of the material presumptively protected by the First Amendment, you can reduce much of the indictment to haiku.”

Consider what’s alleged, and what isn’t, by DOJ Special Counsel Jack Smith (who, let’s not forget, was once rebuked by a unanimous Supreme Court after he tried to put a GOP governor in prison during the Obama administration). The charges against Trump do not include incitement to violence on Jan. 6, 2021. You might be surprised to hear that after Smith’s hyperbolic press conference Tuesday, in which he went on and on about the Jan. 6 Capitol riot and how horrible it was.

Instead, the charges are that Trump committed conspiracy to obstruct an official proceeding, obstruction of and an attempt to obstruct an official proceeding, and conspiracy against rights. Sounds scary, but what it amounts to is the criminalization of opinions with which Jack Smith and the Biden Justice Department happen to disagree.

Crucially, Smith’s indictment alleges that Trump’s claims about the 2020 election were false and that he knew they were false. As evidence, Smith cites a bunch of Trump officials and federal bureaucracies that told him there was no evidence of widespread election fraud. He even cites the infamous Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, which we now know, thanks to the “Twitter Files,” directly interfered in the 2020 election by censoring Americans by proxy.

Yet despite the likes of CISA telling him otherwise, Trump kept claiming the election was stolen, so he must have been lying. Or so goes the reasoning here.

I know, I know. You’re probably thinking this can’t be real, that no one would be so stupid as to hang charges on the idea that Trump secretly believed he’d lost the election because a bunch of deep-state officials told him so, but lied about it in hopes of pulling off a grand “conspiracy.”

But it doesn’t matter. Whether Trump knew he lost the election and lied about it is a political matter, not a legal one. It’s precisely the kind of thing that can only be settled by voters, not by DOJ thugs in the Biden administration.

Think of it this way. If Smith can indict Trump for speaking out about the election, for arguing that it was stolen or rigged, then rest assured the DOJ under Biden could indict every one of the millions of Americans who agree with Trump about 2020 and have said so publicly. Hell, Smith could probably indict me for writing this article (and especially this one).

Forget about Trump for a minute. This indictment sets a terrifying precedent that puts all Americans at risk. If the prosecution of Trump succeeds, it means the First Amendment is a dead letter in America. It means you’re not allowed to have opinions that contradict the Justice Department’s official narrative — and if you do, you’d better not have the temerity to run for high office.

Seen in that light, this latest indictment of Trump — who has now been charged with more than 75 crimes, many of them by the Biden DOJ — is an exercise in raw power. It’s not that Democrats are playing some kind of 4D chess in hopes of ginning up support for Trump among the base to ensure he’s the nominee because they think they can beat him in the general election.

No, they just want to put him in prison. They think Trump’s a criminal for opposing them, and they think the same thing about his supporters. The left wants to criminalize dissent. They don’t really think you should get a vote, much less an opinion. That’s what this indictment is about. If you think this is bad, just wait.

*****

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

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Weekend Read: The Cunning Tyranny of Abstract Notions of the “Common Good” thumbnail

Weekend Read: The Cunning Tyranny of Abstract Notions of the “Common Good”

By Thomas Harrington

While I come from what might be called the traditional left, or what today can perhaps be called the RFK, Jr left, I have always been very interested in reading thinkers from other schools of political thought, especially libertarians. This, owing to their generalized disdain for war and empire, their fierce belief in the need to protect our constitutional rights, and their marked ability—in comparison to so many people in today’s left and mainstream right —to engage in frank, vigorous, and respectful debate.

That said, I’ve never been a huge fan of the ever-present Tyler Cowen. And even less so since he, a supposed lover of liberty, acquiesced (I’m being kind), during the Covid emergency to what Justice Neil Gorsuch rightfully termed “the greatest intrusions on civil liberties in the peacetime history of this country.”

A few days ago, however, he made himself look good by comparison by debating the high priest of animal rights and hedonistic utilitarianism (his term not mine), Peter Singer. 

Reading and listening to Singer, it is easy to get seduced by the vision of the future he paints, one in which human populations will, little by little, come to embrace the kinder angels of their nature and usher in a world marked by much less cruelty to both human beings and animals.

Who could be against that?

The problem lies in the methods he proposes, or perhaps more accurately, obliquely suggests for getting us from here to there.

He speaks a lot about “happiness” and the “general good” and the essential role that “rationality” plays in achieving them.

But he never, at least in this admittedly relatively brief exchange with Cowen, comes close to admitting the immensely problematic nature of all of these concepts.

Who decides what is “happiness” or the “universal” or “general good” in a society? Is it true that “rationality” is coterminous with knowing, or that rationality is the only true path to happiness and moral improvement? Or, for that matter, who exactly is it that has decided that general happiness, however defined, is the supreme moral good? Billions of Christians and Buddhists around the world, to take just two examples, with their belief in the fundamental value and importance of human suffering, might oppose that notion rather strenuously.

When Cowen rightly tries to gain more clarity on his ideas on happiness—by talking about what one should do in a putative encounter between humans and extraterrestrials supposedly possessed of the ability to generate and spread happiness better than humans—Singer admits the possibility that there may not a common metric for happiness between such groups, and should this be the case, he wouldn’t know what to do in terms ceding to, or fighting against, the alien invaders.

Similarly, when Cowen challenges the difficulties of firmly establishing an idea of the common or general good in society, Singer simply changes the subject and repeats his belief in the concept.

COWEN: How do we know there is a universal good? You’re selling out your fellow humans based on this belief in a universal good, which is quite abstract, right? The other smart humans you know mostly don’t agree with you, I think, I hope.

SINGER: But you’re using the kind of language that Bernard Williams used when he says, “Whose side are you on?” You said, “You’re selling out your fellow humans,” as if I owe loyalty to members of my species above loyalty to good in general, that is, to maximizing happiness and well-being for all of those affected by it. I don’t claim to have any particular loyalty for my species rather than the general good.

Are you catching on to the game?

Singer goes around mouthing immensely problematic concepts like these, and building an edifice of ethical imperatives around them for others to follow. But when challenged on basic aspects of their coherence he is unwilling to provide any answers. 

Let’s be serious.

Do you really think someone, a supposedly really smart someone, who immediately admits, in the example of the extraterrestrials he and Cowen used, the inoperability of his theory of the common good in the absence of a common metric of happiness, is incapable of seeing the enormous question it begs about his vaunted theories about the same thing when applied to the immense cultural, and therefore value diversity of the human species?

I don’t for a moment think he’s incapable of seeing this obvious point. I think he simply does not want to go there.

And why might he not want to go there?

We get the first hint as to why when, in a response to a Cowen query about the existence or not of a “general faculty of reason”—the thing which Singer had just presented as the fundamental source of a more evolved human ethics—he speaks of the possible need of a more rational and therefore presumably more moral elite to effectively impose their superior ways of seeing things on the less enlightened majorities. And again notice the initial hedging when pressed about a fundamental element of the moral edifice he uses to generate very non-ambiguous moral imperatives for others.

Cowen: You’ve written plenty about many, many other examples. Is there really this general faculty of reason that overrides those evolved intuitions?

SINGER: I think there certainly can be, and I think there is for some people some of the time. The question would be, is everybody capable of that? Or even if not everybody, are we capable of getting a dominant group who do follow reason in general, universal directions, who use it to develop a more universal ethic that applies to a wider group of beings than their own kin and family and those that they’re in cooperative relationships with? I think there’s evidence that that is possible, and we don’t yet know to what extent that can spread and start to dominate humans in future generations.

Things become clearer still when we take the time to consult a paper, Secrecy in Consequentialism: a Defense of Esoteric Morality,  mentioned later in the interview, that the Australian philosopher wrote in cooperation with Katarzyna de Lazari-Radek in 2010.

In it, the authors defend Sidgwick’s concept of “esoteric morality,” which Singer and Lazari-Radek sum up in the following way:

Sidgwick famously divided society into ‘enlightened utilitarians’ who may be able to live by ‘refined and complicated’ rules that admit exceptions, and the rest of the community to whom such sophisticated rules ‘would be dangerous.’ Therefore, he concluded: ‘. . . on Utilitarian principles, it may be right to do and privately recommend, under certain circumstances, what it would not be right to advocate openly; it may be right to teach openly to one set of persons what it would be wrong to teach to others; it may be conceivably right to do, if it can be done with comparative secrecy, what it would be wrong to do in the face of the world; and even, if perfect secrecy can be reasonably expected, what it would be wrong to recommend by private advice and example.’ ” 

Maybe I’m being precipitous, but I find it hard to believe that, given his obvious intelligence and renown, Singer does not consider himself to be one of the ‘enlightened utilitarians’ who may be able to live by ‘refined and complicated’ rules that admit exceptions, and the rest of the community to whom such sophisticated rules ‘would be dangerous.’

If this is the case, would it be so wrong to suggest that when Singer blithely and repeatedly uses concepts he is unwilling to minimally subject to the scrutiny they clearly deserve, he might be playing the very game of “esoteric morality” he defends in his article on Sidgwick?

I don’t think so.

If we were to have the ability to eavesdrop on the uncensored internal train of Singerian reason, my guess is we’d find perorations similar to this:

I know most of the boobs out there are a lot less thoughtful than me and, again, unlike me, will probably never transcend their irrationality enough to ascend to see the truths of the new moral universe toward which I am trying to impel them. Therefore it is important for me and others in my enlightened caste to withhold a lot of details which would just get balled up in their convoluted minds, and instead keep the repeated rhetorical emphasis on vague and deeply compelling notions like increased happiness and the general good which will appeal to their less developed brains that will, in time, eventually allow them to be herded into “our” superior castle of ethics. 

I wish I could say Peter Singer is an exception in our current socio-political landscape, but he is not.

Rather, Peter Singer’s peek-a-boo world of vaguely defined, but at the same time supposedly deeply urgent, moral principles is the world toward which many, many very powerful forces are trying to drive us.  

Indeed, these same people just ran a very successful 3-year experiment in conditioning us to accept more debasement of our individual rights in the name of at best unprovable, and at worst, flat-out false ideas of the “common good.”

And given that so few rebelled and spoke out during this experiment in the name of the concrete individual human being with a name, a mortgage, and a pesky sense of his own dignity and destiny before the unfathomable complexity of creation, they’ll be back for more.

Will those who went along with the hustle have by then reconsidered the consequences of their meek acquiescence to these abstract schemas that insouciantly snuffed out so many people’s basic claims to dignity and autonomy?

One can only hope so.

For their sake as much as anyone else’s.

Why?

Because power has no loyalty.

For while this time around the conformists may have gained a sense of energy and virtue from being on the “right,” majoritarian side of the supposed campaign to enforce the abstract, and as it turned out, the completely lie-ridden notion of the common good—with all that this implied in terms of the ephemeral joy of demonizing others —there is no guarantee that the same rules and alignments will apply the next time around.

Indeed, one of the cardinal precepts of today’s Machiavellians and their esoteric court philosophers is the imperative of rewriting the operative rules early and often to the point where only the most stubborn and mindful among the rubes have the will to object to their carefully planned campaigns of moral disorientation.

Eventually, however, the campaign to change society in the name of abstract notions of the common good engineered by those avid for power will touch on something that the one-time cheerleaders for the Covid mob and now the Trans and Climate mobs deeply cherish as part of their essential humanity (that is if they haven’t yet abandoned that concept under the weight of external pressures) and they will once again have the choice of fighting or acquiescing.

Maybe then those suggestions they made about cries for bodily sovereignty and informed consent being mere fig leaves for justifying puerile Oedipal intransigence or flat-out scientific illiteracy, will look a little different to them.

Then again maybe they won’t.

Maybe they’ll simply go along with the stealthy extirpation of that thing they once cherished about their individual humanity without a fight and, after ceding to the messaging of self-anointed rational and moral clairvoyants like Peter Singer, convince themselves it was all necessary for guaranteeing the “march of progress” that will end in more happiness for all.

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This article was published by the Brownstone Institute and is reproduced with permission.

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Nebraska Law Implements Voters’ Demand for More Secure Elections thumbnail

Nebraska Law Implements Voters’ Demand for More Secure Elections

By Jack Fitzhenry

When Nebraskans went to the polls last November, nearly two-thirds of voters decided to amend Nebraska’s Constitution to require people to present a valid photo identification before casting a vote in future elections.

To implement the amendment, Nebraska’s Legislature recently passed a law setting forth the exact voter ID requirements and striking a proper balance between ensuring election integrity and enabling citizens to freely exercise their right to vote.

In an era when noncitizen voting gains currency as a serious proposal and when tech mavens spend millions lobbying to make voting as banal as sending a “like” on their social media platforms, it was heartening to see that this traditional means of safeguarding the integrity of elections remains popular with voters.

Still, after the voters spoke in November, there was work to be done. The newly adopted amendment left to the state’s Legislature the task of determining how the voters’ will would be implemented. And good intentions, like those the amendment expressed, never suffice to ensure good outcomes.

Fortunately, the bill proposed by state Sen. Tom Brewer, which was passed by a vote of 38-1 in Nebraska’s unicameral Legislature and signed into law by Republican Gov. Jim Pillen on June 2, largely delivered on the twin promises of election security and accessibility.

The law mandates that in any election, a person who appears at the polls to vote must first show a valid photo ID before he or she casts a ballot. Those choosing to vote by mail are obliged to provide either a copy of their photo ID or the number from their state driver’s license or state ID card with their ballot envelope. The law wisely prevents voters from signing an affidavit in lieu of providing a photo ID, a fraud-prone practice allowed in some states.

Finally, the law permits those who appear at the polls without the requisite ID to cast a provisional ballot, which ballot officials will count only if the voter returns on or before the Tuesday following the election to provide the necessary photo ID.

Narrow exceptions exist for voters with religious objections to being photographed and those with a recognized impediment. Collectively, these changes enable election officials to authenticate the identity of each person and ensure that only eligible voters are casting ballots.

To temper concerns about the ID requirement limiting ballot access for some, Nebraska’s law states that no fee will be charged to citizens seeking a state-issued photo ID for voting purposes. Nebraska thus eliminated any financial burden that might have fallen on voters needing to comply with the new law.

The Heritage Foundation tracks laws like Nebraska’s on its Election Integrity Scorecard, which ranks all 50 states and the District of Columbia based on 48 criteria reflecting best practices for administering free and fair elections. Prior to this law, Nebraska ranked 41st with a total score of 47 out of 100 possible points—among the lowest scores in the nation. The state earned not a single point in the category “Voter ID Implementation.”

With its latest law and the blessing of its voters, Nebraska now earns all 20 points in that category, bringing the state’s total score to a more respectable 67 points and putting it in sole possession of 18th place overall.

This is a great improvement and a testament to the good work legislators can do when they faithfully heed the electorate’s concerns.

While the new law is a significant accomplishment, the broader cause of election integrity offers other opportunities for voters and legislators alike. The need to keep voter rolls accurate, to manage the chain of custody for mail-in ballots, and limit opportunities for vote harvesting by unscrupulous campaign workers are all areas where Nebraskans could apply their improving energies in the next legislative session in 2024.

*****

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

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Why EVs Are ‘Piling Up’ at Dealerships, Despite Massive Taxpayer Subsidies thumbnail

Why EVs Are ‘Piling Up’ at Dealerships, Despite Massive Taxpayer Subsidies

By Jon Miltimore

Federal lawmakers created a glut of EVs with their meddling, and it’s likely to have an adverse impact on both the auto market and the environment.

Ford Motor recently announced it is slashing prices on its F-150 Lightning, an electric vehicle the company rolled out in 2021.

The Lightning now carries a suggested retail price of $49,995, about $10,000 lower than its previous recommended price tag ($59,974), a reduction the company says is possible because of lower “battery raw material costs and continued work on scaling production and cost.”

It’s certainly possible that reduced overhead from battery minerals and production costs played a role in Ford’s decision to trim its price tag by nearly 20 percent, but that may be only half the story.

Several reports show EVs are not exactly flying off dealership lots. In fact, there’s a glut of them.

“After a prolonged period in which EVs quickly disappeared from dealerships, the electric vehicle industry now has the opposite problem: unsold models are piling up,” reported Money last week. “About 92,000 EVs currently sit on dealers’ lots; that’s a 342% increase from a year ago, when only about 21,000 did so, according to automotive research firm Cox Automotive.”

Ford is not immune from the weakened demand for EVs. Sales of its flagship car, the Mustang Mach-E, have slumped, down 44 percent in May from the same month last year.

The Lightning, which won the title of EV king of pickup trucks after Ford moved nearly 16,000 units in 2022, has fared better but is still struggling to keep pace with 2022. And now the company is facing some stiff new competition. (More on that in a minute.)

This was not the scenario many people predicted.

In April, the International Energy Agency released a report in which it predicted EV sales to increase 35 percent after a record-breaking year. But economists I spoke with said such predictions were overly optimistic considering current macroeconomic conditions.

This invites important questions. Is the glut of EVs simply a product of tightened money supply?

Apparently not. As Axios noted, the 92,000 EVs currently sitting on lots are comparatively high relative to gasoline-powered cars.

“That’s a 92-day supply — roughly three months’ worth of EVs, and nearly twice the industry average,” wrote Joann Muller. “For comparison, dealers have a relatively low 54 days’ worth of gasoline-powered vehicles in inventory….”

In other words, dealerships are sitting on a lot more EVs than gasoline-powered vehicles—despite efforts to entice consumers to buy EVs with taxpayer-funded credits up to $7,500.

This is evidence that pretty much everyone—from central planners to auto manufacturers—misjudged the demand for EVs, which are not even as environmentally friendly as politicians would have you believe.

Not only do EVs require an astonishing amount of mining—an estimated 500,000 pounds of rock and minerals must be upturned to make a single battery, physicists point out—but their carbon footprint isn’t much smaller than gas-powered cars.

It turns out that EVs actually require a lot more CO2 to produce than gas-powered cars. EVs can make that up, but it takes a great deal of time because EVs also often run on electricity generated from fossil fuels. Just how long? In 2021, Volvo admitted that its C40 Recharge has to be driven 70,000 miles before its carbon impact is lower than its gas-powered version.

All of this is to say that a bunch of unused EVs isn’t just a financial headache for auto dealers and motor companies; it’s also an environmental problem.

That said, the weaker-than-expected demand for EVs doesn’t mean the future of electric vehicles is doomed. On the contrary, demand for EVs is likely to increase as battery technology and EV infrastructure improves. Ford’s Lightning, for example, only has half the range of its gas-powered F-150 because of its small battery—a clear concern when charging stations are not yet readily available in many places.

For now, however, motor companies are competing with one another to attract customers in a smaller-than-anticipated EV market. Which brings me to Elon Musk.

Tesla last week rolled out its much-hyped Cybertruck, which is a direct challenge to the Lightning and likely played a role in Ford’s price cut.

Federal lawmakers may have created a glut of EVs with their meddling, and it’s likely to have an adverse impact on both the auto market and the environment. But one of the virtues of capitalism is that consumers will ultimately decide who wins in the EV market and who loses.

Whether that turns out to be Musk’s Cybertruck or Ford’s Lightning remains to be seen. Either way, the competition is bringing down prices, which is a win for consumers looking to purchase an EV.

But the glut of electrical vehicles on the market reveals the danger in letting lawmakers decide what consumers should be driving.

*****

This article was published by FEE, The Foundation for Economic Education, and is reproduced with permission.

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.