There was a December story I never got to cover properly, and that was my delight over Bird Scooter’s bankruptcy.
Electric scooter company Bird Global announced Wednesday that it has filed for bankruptcy protection in an attempt to stabilize its wobbly finances.
The move marks a sobering comedown for a formerly high-flying startup that was trying to make it easier to get around big cities in an environmentally friendly way with its fleet of electric scooters. The concept attracted about $500 million in investments from prominent Silicon Valley venture capital firms such as Sequoia Capital and Accel Partners before becoming a publicly traded company in 2021.
The things have been annoying ubiquitous in downtown Austin, from Bird and other firms like Lime.
Now, the Miami-based company finds itself struggling to survive after losing more than $430 million since the end of 2021.
Bird has lined up $25 million in financing from MidCap Financial, a division of Apollo Global Management, as it tries to reorganize under Chapter 11 bankruptcy protection in Florida.
Michael Washinushi, Bird’s interim CEO, predicted the company will be able to bounce back and continue its “mission to make cities more livable” by providing vehicles that don’t clog the roads nor burn fuel. But investors seemed doubtful as Bird’s stock lost nearly 80% of its remaining value Wednesday to close at 8 cents per share, a far cry from its price of about $154 at the end of 2021.
I have no objections to electric scooters themselves, or even renting electric scooters. What I object most strenuously to is the business model Bird and their ilk have pursued, which is: Just leave your scooters any damn place and we’ll pick them up later.
This is an abuse of both the commons and any patches of private property these scooter-renting Eloi happen to leave their discarded vehicles scattered onto. We have laws against littering, and they should apply equally to people who dump these things on lawns and sidewalks.
Bird and their ilk seem both a sneaky assault on private property, and an ill-considered investment scheme of companies trying to gin up a new market far in advance of real demand, much like WeWork. And this “ride sharing” idea already failed miserably in China with multiple non-electric bike startups going bust and leaving behind mountains of unused bikes.
Thanks to their abuse of the commons, Bird deserves to go bust.
And now a bonus Family Guy clip:
(Note: BlueHost is still going dog slow. I’ll try to chat with someone there tomorrow.)
Happy Black Friday, everyone! (Here’s my prepping/gift guide, if you haven’t seen it already.) I hope everyone had a great Thanksgiving. Some interesting international election results, unreasonable gun control legislation gets struck down in two different states, more legal trouble for Houston Democrats, and a weed company goes bankrupt. It’s the Friday LinkSwarm!
The average price American families will have to pay to celebrate Thanksgiving with a traditional dinner will be the most expensive in history after years of sky-high inflation that experts attribute partially to President Joe Biden’s policies, according to data from the Bureau of Labor Statistics (BLS).
The price of all goods has risen dramatically under Biden following a period of sustained high inflation, which peaked at 9.1% in March 2022 and has since remained elevated, measuring at 3.2% in October, while the index for food rose 3.3% year-over-year for the month. The total increase in costs for a Thanksgiving dinner is about 26% since the beginning of Biden’s term, culminating in the most expensive Thanksgiving dinner in history.
Don’t buy the cookies. “Girl Scouts To Host Training Sessions On ‘Internalized Racism,’ ‘White Supremacy Culture.'” (Hat tip: Instapundit.)
In a surprising turn of events, Argentina has elected the libertarian outsider Javier Milei as its new president. The hotly contested presidential run-off saw Milei defeating left-wing candidate Sergio Massa — a consequential shift in the country’s political landscape. Massa brusquely conceded on Sunday night, stating, “Milei is the president elected for the next four years.”
The victory of Milei, a self-proclaimed “anarcho-capitalist,” introduces an unconventional leader with what are considered to be radical economic views relative to Argentina’s neighbors. His campaign, characterized by anti-establishment rhetoric and metaphorical gestures such as wielding a chainsaw to show his fervor for cutting taxes, resonated with voters frustrated by Argentina’s economic decrepitude, including triple-digit inflation. One of Milei’s key proposals is the adoption of the U.S. dollar as Argentina’s national currency, an unprecedented move for a country of its size (Argentina is home to some 45.8 million people).
Massa — a lifelong politician and representative of Argentina’s left-wing political establishment — emphasized his government’s actions to address inflation during his tenure.
But Milei’s appeal, particularly among the younger generation, suggests a desire for change to break free from the cycle of economic crises.
Milei’s victory has produced excitement and concern alike. While some see him as the catalyst for much-needed economic reforms, others fear the potential austerity measures tied to his plans, such as shutting the central bank and slashing spending. Despite the uncertainty, Milei’s supporters view him as the only viable option to break the political status quo and address Argentina’s persistent and extreme economic challenges.
The election is not just a political shift but also a generational one, with Milei’s popularity among the youth reflecting a desire for a new direction. The effect of Milei’s win extends beyond Argentina’s borders, potentially influencing trade relationships, especially with his criticism of China and Brazil and his preference for stronger ties with the United States. As for the U.S., the hour is late, and we’ll take all the friends we can get, and Argentina is doubly welcome because the Millennium must be nigh if a libertarian won an election outside of New Hampshire.
Note: Linking to MSN rather than NRO because the latter has now raised it’s war against ad-blockers to obnoxious levels. Year-by-year, the TDS-infected NR has become ever-more sad and useless.
Geert Wilders, the Dutch populist whose anti-Islam comments have led to death threats, could become the next leader of the Netherlands following an election upset for his Freedom Party (PVV) on Wednesday.
After 25 years in Dutch politics without holding office, Wilders was set to lead coalition government talks and has a good chance of becoming prime minister.
An exit poll on Wednesday evening showed the PVV in a clear lead, 10 seats ahead of its closest rival, Frans Timmermans’ Labour/Green Left combination.
“We will have to find ways to live up to the hopes of our voters, to put the Dutch back as number one”, Wilders said in his first response, adding that “the Netherlands will be returned to the Dutch, the asylum tsunami and migration will be curbed.”
Maryland is one of 14 states that require background checks for all firearm purchases, whether or not the seller is a federally licensed dealer. Since 2013, Maryland has imposed an additional requirement on handgun buyers: They must first obtain a “handgun qualification license,” which entails completing at least four hours of firearm training and undergoing a seemingly redundant “investigation” aimed at screening out people who are legally disqualified from owning guns. According to the U.S. Court of Appeals for the 4th Circuit, that process, which can take up to 30 days, violates the Second Amendment.
In a decision published on Tuesday, a divided 4th Circuit panel concluded that Maryland’s handgun ownership licensing system is not “consistent with this Nation’s historical tradition of firearm regulation”—the constitutional test that the U.S. Supreme Court established last year in New York State Rifle & Pistol Association v. Bruen. Writing for the majority in Maryland Shall Issue v. Moore, 4th Circuit Judge Julius Richardson notes that Bruen “effected a sea change in Second Amendment law,” making a variety of gun control laws newly vulnerable to constitutional challenges. Maryland’s handgun licensing law is the latest example.
Speaking of unconstitutional gun laws being struck down: “It turns out that bullets are an essential part of a gun, and limiting the number of rounds in a gun violates the Oregon constitution. A county judge in Oregon made that decision on Tuesday overturning Measure 114, a citizen-passed measure that outlawed what gun grabbers call ‘high capacity magazines’ and required that Oregon serfs get a permit to be allowed to purchase a gun.” (Hat tip: Stephen Green at Instapundit.)
Funny how no Arab nation wants to take in Palestinians. They know the simple truth: They suck.
The Palestinians tried to take over Jordan in the 1970s, leading to the late King Hussein declaring war on them and driving them out. They were booted from Kuwait after collaborating with Saddam Hussein’s forces before the Gulf War. They set off a powder keg in Lebanon, a nation that has yet to recover from its brutal civil war that lasted 15 years. No Arab country wants these people because they bring instability and trouble.
Outgoing Houston Mayor Sylvester Turner gets to enjoy a new host of scandals on his way out.
As term-limited Houston Mayor Sylvester Turner finishes his final days at the helm of the state’s most populous city, a new set of scandals have emerged over city contracts and a dispute over who will pay for a book touting the mayor’s legacy.
In the most recent dustup, an investigation by Houston’s KPRC 2 discovered that city contracts for much-needed water repairs were awarded to two relatives of Houston Public Works (HPW) employee Patrece Lee, including one for $4.5 million to Lee’s brother, who had only created his company six months before the city council approved the “emergency contracts.”
When KPRC reporter Amy Davis attempted to question Turner about the issue at a public event last week, Turner became irate and told his communications director to escort Davis from the room.
“You are not going to get away with this,” said Turner to Davis. “You are rude.”
Late Friday, HPW Director Carol Haddock announced that the employee had been placed on leave while the city’s Office of the Inspector General investigated the allegations.
In another contract scandal, Houston Landing media reported last week that the Midtown Redevelopment Authority had referred information to law enforcement on a since-fired manager who allegedly steered more than $4 million in taxpayer-funded landscaping contracts to himself and another contractor.
The latest developments came hard on the heels of Turner’s squabble with Houston First Corporation, the city’s marketing organization. During the “State of the City” luncheon last September, hosted by Houston First, attendees were given copies of Turner’s book “A Winning Legacy,” which celebrates the mayor’s accomplishments during his eight years in office.
As first reported by Bill King, Turner told President and CEO Michael Heckman that Houston First must pay a $123,979 invoice for the 600 copies, but Heckman refused, saying it was not in the corporation’s budget and not an appropriate expense. Houston First Chairman David Mincberg later told FOX 26 that the corporation would develop a strategy to raise private funds to pay for the books.
Controversy has also surrounded Turner’s management of city finances. Last year, Controller Chris Brown warned that the city was using $160 million in federal COVID-19 relief funds to plug budget holes and even to cover ongoing expenses.
Speaking of governments in trouble for spending Flu Manchu funds on other priorities, Germany is also in trouble for pulling the same trick after their high court told them to stop. As Europeans, spending within their means is unacceptable, so they’re now plotting to suspend debt limits…
Texas Governor Greg Abbott endorses Donald Trump for President. This is interesting in that Abbott is a careful, cautious Republican, who might be more ideologically inclined to endorse Ron DeSantis or Nikki Haley. That Abbott has endorsed Trump indicates he thinks Trump is a lock for the 2024 nomination. He may be right.
“Stacey Abrams’ Brother-In-Law Arrested, Accused Of Human Trafficking, Choking Underage Girl…Jimmie Gardner, a well-known Georgia-based youth motivational speaker, is accused of human trafficking, lewd or lascivious touching, and battery…According to the Tampa Police Department, Gardner invited a 16-year-old girl to his hotel room in the early hours of Friday, offering to pay her for sexual acts.” Sounds like the wrong sort of youth motivation…
Happy Good Friday! The Biden Recession continues it’s downward spiral…
…a deep dive into how the Russian Conspiracy Hoax has corrupted institutions, Chicago doubled down on failure, and unions want to take your packages away. It’s the Friday LinkSwarm!
“Small Businesses File For Bankruptcy At Record Pace, Surpassing COVID Crash.” So much for a Biden presidency helping the little guy…
They could either keep doing what reporters had done since the beginning of time, confining themselves to saying things they could prove. Or, they could adopt a new approach, in which you can say anything is true or confirmed, so long as a politician or intelligence official told you it was.
We know how that worked out. I was never invited back, nor for a long time was any other traditionally skeptical reporter, while Nance — one of the most careless spewers of provable errors ever to appear on a major American news network — became one of the Peacock’s most familiar faces.
I don’t know Malcolm and don’t mean to get nasty about this, but: even before that January 2017 broadcast, he had an extraordinary record, one that should have scared away any retraction-averse producer. On August 20th, he went on with Joy Reid and said the Green Party’s Jill Stein “has a show on Russia Today.” This wasn’t true, as Stein quickly pointed out, but MSNBC refused to acknowledge the error. Media watchdog FAIR repeatedly asked for a correction, as did friend Glenn Greenwald at The Intercept, but they refused to budge.
This may not seem a big deal, but at the time it was still weird and something of a pioneering move for a major news organization to just refuse to fix a clear error.
Nance went on to make a lot more, some I would classify as important. A tweet of his in late 2016 was a major source for the pre-election misconception that the Wikileaks-leaked emails of Clinton campaign chief John Podesta were “riddled with forgeries” and “#blackpropaganda.” He would regularly make all sorts of claims without evidence, like that the K.G.B. had “been surveilling Donald Trump since 1977,” and that “little” comes from Trump’s mouth that isn’t “carefully planned to benefit the Russian Republic,” and all sorts of other nonsense.
I was quiet until he said Glenn “shows his true colors as an agent of Trump and Moscow,” “reports in to his masters in Russia,” and is “deep in the Kremlin pocket.” This was outrageous. I was shocked MSNBC didn’t fire him on the spot. Still, I voiced objections in a measured way I hoped might get through, either to Nance or to someone at the network. “I’ve been on the air with Malcolm Nance and he seemed like a nice guy,” I tweeted, “but this awful practice of calling people traitors and foreign agents based on no evidence has really gotten out of hand.”
Nance’s response was “Ok, you’ve convinced me. You need to be blocked. #Bye.” He remained a regular guest on the network, which didn’t cool on booking him until the Russia story fell apart with the release of the Mueller report the next year.
The Nance situation was symbolic of what happened at the network from the beginning of Trump’s term, really beginning in early 2017. It went from being a place where you had to be at least in the ballpark of demonstrably true to being a place where the factual standard was, “Whatever dogshit drops out of the mouth of any hack or spook.”
Moreover the network didn’t just re-report this stuff, it became the favored launching pad for all the most blatant blue-Anon disinformation, like California congressman Adam Schiff saying he had “more than circumstantial” evidence of collusion, or former Obama defense official Evelyn Farkas suggesting the Trump administration would try to destroy evidence if they “found out how we knew what we knew about the Trump staff’s dealing with Russians.” Farkas later testified under oath that she “didn’t know anything” about collusion.
Snip.
As we later found out, among other things via Jeff Gerth’s gigantic piece in the Columbia Journalism Review, the FBI said nothing about many stories it knew to be wrong, including the influential New York Times exposé, “Trump Campaign Aides Had Repeated Contacts With Russian Intelligence.” The possibility that officials can lie to us in this way — leaking, asking that attribution be limited to uncheckable “sources familiar with the matter,” then saying nothing as stories start taking water — is exactly why we don’t stick our necks out for such people.
Snip.
the network doubled down, seemingly hiring as contributors every unemployed prosecutor or natsec official they could find, especially from failed Russiagate probes. They’d already spent on names like ex-CIA head John O’Brennan, former assistant FBI counterintelligence chief Frank Figliuzzi, House Intel Director of Investigations and future congressman Dan Goldman (who met Adam Schiff in an MSNBC green room), and federal prosecutor Glenn Kirschner. Now, they added cadaverous Mueller sidekick Andrew Weissmann and, astonishingly, Weissmann’s deputy, the fired FBI lawyer Lisa Page. They also began bringing in Page’s lover, fellow FBI firee Peter Strzok, as a commentator.
America became familiar with Page and Strzok after their texts — referring to the Trump-Russia investigation as an “insurance policy,” and ripping “sandernistas,” among other things — became public. These were living monuments to press excesses of the Trump era. As Gerth wrote, Strzok quietly reported to bosses after the Times’s “repeated contacts” story came out, saying, “We are unaware of ANY Trump advisers engaging in conversations with Russian intelligence officials.” Strzok in other words was exactly the kind of person to whom Rachel might have been referring when she rhapsodized about FBI “not saying anything” to dissuade us from believing errors.
Page on April 10, 2017 got a text from Strzok, saying he wanted to talk to her “about [a] media leak strategy with DOJ.” This was a day before a Washington Post story that cited “law enforcement and other U.S. officials” in saying the secret FISA court found probable cause to believe former Trump aide Carter Page (no relation) was an “agent of a foreign power.” Whoever leaked this was sabotaging not just the Post, but every downstream media org picking up the story, because the story at its roots was wrong: Carter Page was not an “agent of a foreign power,” as the FISA court had been misled, by Steele and the FBI. MSNBC was one of the first outlets to regurgitate this thing.
When sources lie to you, you should be mad. At minimum, you should be ripping their names out of your Rolodex (or modern equivalent). MSNBC did the opposite, hiring seemingly everyone who’d helped them down this reputation-tarnishing path.
MSNBC bet everything on its switch in 2017, and though it paid handsomely at first — in spring of 2017 they became the first cable network in two decades to unseat Fox for the #1 spot, with Rachel owning the top-rated non-sports program on cable — the collapse of the Mueller investigation triggered a long, frankly earned, post-trout-fishing slide. No doubt the indictment of Donald Trump will reanimate things, but prior to that it was grim, as Fox was beating CNN and MSNBC combined by the end of January. The ratings picture for March showed that MSNBC’s top show was The Last Word with Lawrence O’Donnell, rated 11th, followed by The Beat With Ari Melber at 16th.
After all this, after throwing away all their standards, clowning themselves with years of wrong stories, doling out rice bowls to the procession of spooks who now clog their airwaves, and watching as their ratings predictably collapsed, now they want to give me a hard time. Not because I got anything wrong, but because they don’t like my opinions, or where things like the Twitter Files reports came from.
Stuck on stupid. “Far-Left Democrat Brandon Johnson Wins Chicago Mayoral Race.”
Johnson, 47, is a Cook County commissioner, a former social studies teacher, and a paid lobbyist for the radical Chicago Teachers Union. He ran as a decidedly far-left activist, and was backed by Bernie Sanders and the Democratic Socialists of America.
Johnson campaigned on promoting racial justice and uplifting the working class. He is an opponent of charter schools. In order to pay for a variety of new social programs, he has called for increased taxes on large corporations, wealthy residents, and suburbanites who visit the city. During his campaign, Johnson promised $1 billion in new spending.
Because Lori Lightfoot’s administration wasn’t enough of a disaster…
Speaking of unions behaving badly, the Teamsters are planning a UPS strike.
Yet another reason for the Trump charges to be thrown out. “The progressive daughter of judge presiding over Donald Trump’s hush money case in Manhattan who worked for Kamala Harris and Joe Biden…Manhattan Judge Juan Merchan’s daughter, Loren, 34, works for progressive digital strategies firm Authentic Campaigns. She was a digital director for Vice President Kamala Harris’ 2020 presidential campaign and has worked for a slew of other Democratic campaigns.”
Dispatches from the Soros-funded decline of New York City: “On Saturday, the New York Police Department announced that a man who shot a thief in self defense will be charged with attempted murder despite being shot twice and having to wrestle the firearm away from the thief.” (Update: Soros tool Alvin Bragg changed his mind.) (Hat tip: Ed Driscoll at Instapundit.)
“Texas Bill Would Create State-Issued Gold-Backed Digital Currency.” This would be a super-interesting story if I thought there was a snowball’s chance in hell of this passing and the Federal Reserve not quashing it.
Greetings, and welcome to another Friday LinkSwarm! I still haven’t had time to wrangle all those Twitter revelations into a coherent article, so that will have to wait for another post.
How different it feels this time around. Broadcasters are lustily cheering anti-lockdown protesters in China. Members of Congress offer unqualified support. President Joe Biden, although more guarded, is sympathetic.
No Western politician, as far as I can see, is insulting the protesters. They are not dismissed as selfish or sociopathic, nor as dupes of conspiracy theories. Sen. James Lankford (R-OK) captured the mood: “To the people of China — we hear you and we stand with you as you fight for your freedom.”
Broadcasters and columnists who spent 2020 calling anti-lockdowners kooks and criminals are now uncomplicatedly applauding their Chinese counterparts. They see ordinary people standing up against an authoritarian government the anti-COVID policies of which were crushing liberty.
So, what changed? Perhaps pundits tell themselves that the disease is less virulent now, or that vaccination has altered the balance of risk, or that, in some other way, Beijing’s crackdown is less proportionate than those of 2020. But none of these explanations stacks up.
Yes, the coronavirus became less lethal. All viruses that spread through human contact eventually become less lethal because they have an evolved tendency to want to keep their hosts up and active and therefore more infectious. For this to happen, they require a critical mass. Enough people need to be incapacitated or killed by the original version to give milder strains an advantage. And, yes, the vaccines helped, too.
But the trade-offs are essentially the same in China today as they were three years ago — coronavirus deaths versus other deaths. The current unrest was sparked by a fire in Xinjiang, which was allowed to become needlessly deadly because the authorities were following COVID protocols. In other words, they were elevating COVID above other forms of harm.
Most countries did the same in 2020 with, as we now see, disastrous results. The lockdowns did not just cause an economic meltdown from which we will take years to recover. They also failed on their own terms. They killed more people than they saved.
Guess which developed country had the lowest excess mortality between 2020 and 2022. Go on, have a guess. That’s right. Sweden, which refused to close shops or schools or to impose a mask mandate, saw cumulative excess deaths rise by 6.8%, the lowest figure in the OECD. By way of comparison, the equivalent figures were 18% in Australia, 24.5% in the U.K., and 54.1% in the U.S.
“Loudoun County Fires Superintendent over Handling of Sexual-Assault Cases. The Loudoun County school board fired Superintendent Scott Ziegler in a closed-door meeting Tuesday night after a special grand jury released a report blaming the district for failing to escalate cases of student sexual assault in 2021.” The black-pilled who proclaim that electing Republicans is useless aren’t considering the Glenn Youngkins of the world.
he Washington Post announced in October that it was welcoming a new communications chief. The paper’s official announcement lauded Kathy Baird, a veteran of Nike and the public relations giant Ogilvy, as a “key strategic partner” positioned to “realize our ambitious vision for the publication.”
It also noted her membership in the “Rosebud Sioux Tribe” and service on the board of IllumiNative, which it described as “a nonprofit working for accurate and authentic portrayal of Native people.”
That’s one way to put it. IllumiNative is a self-described “racial justice organization” funded by a dark money behemoth that encourages elementary school students to fight for Democratic Party initiatives like universal health care. Its purpose is similar to various far-left activist groups, focusing on “breaking through systems of white supremacy” and “grassroots organizing,” according to IllumiNative’s website.
Argentina’s Vice President (and former President, and former First Lady) and leftwing Paronist Cristina Fernandez de Kirchner is sentenced to six years of corrupt fraud.
Paralympian: “Hey, can I get a wheelchair ramp?” Veterans Affairs Canada: “Are you sure you wouldn’t like assisted suicide instead?” (Hat tip: Dwight.)
“Suspended Smith County Constable [Curtis Harris] Found Guilty of Theft, Official Oppression. Since his indictment, the 34-year-old Democrat has been jailed for violating the conditions of his bond and removed from office by a judge.” Smith County is in northeast Texas, and the biggest city is Tyler. Not to be confused with Deaf Smith County, which is completely different…
Great Pyrenees watchdog fights off 11 coyotes, killing eight. Good boy! I didn’t realize there were coyotes in Georgia, but evidently they’ve been extending their range from the southwest.
I’ve been writing about China’s bubble economy for over a decade, from the housing bubble to the Ghost Cities and even ghost collateral. And now China’s entire house of cards appears to be trembling thanks to a company called Evergrande, which owes more than $300 billion.
China Evergrande Group, until recently the world’s largest property developer, owns dozens of stalled sites like Sunny Peninsula across China. Buckling under more than $300 billion in liabilities, the company is close to collapse, leaving 1.5 million buyers waiting for finished homes.
That’s why Evergrande has reached its Lehman moment:
Instead of Evergrande making the announcement, it was the entity that will soon control the massively overlevered property developer that made it for them: the Chinese government.
According to Bloomberg, Chinese authorities told major lenders to China Evergrande Group not to expect interest payments due next week on bank loans, which takes the cash-strapped developer a step closer the nation’s largest modern-day restructurings, and guarantees that China’s “Lehman Moment” is now just a matter of days, if not hours.
According to Bloomberg, citing unnamed sources, the Ministry of Housing and Urban-Rural Development told banks in a meeting this week that Evergrande won’t be able to pay its debt obligations due on Sept. 20, and instead most of Evergrande’s working capital in now being used to resume construction on existing projects, the housing ministry told bankers, according to a Bloomberg source.
And since nonpayment of interest and principal will represent an event of default, the company is unlikely to make any subsequent interest, or principal, payments either since it will have already default even though Bloomberg claims that “Evergrande is still discussing the possibility of getting extensions and rolling over some loans.” It won’t, especially since the developer will also miss a principal payment on at least one loan next week, which means it’s game over.
Meanwhile, as reported previously, Chinese authorities are already laying the groundwork for a debt restructuring of the $300 billion company (which recently hired Houlhan Lokey to advise it during the upcoming historic bankruptcy), assembling accounting and legal experts to examine the finances of the group. With senior leaders in Beijing silent on whether they will allow Evergrande creditors to suffer major losses, bondholders have priced in slim odds of a rescue infuriating countless investors and creditors who have mobbed the company’s offices across the country and also gathered at its HQ, demanding the company “return their money.” It won’t happen.
Not only is Evergrande possibly facing complete liquidation, but word came down that the company might make payments on Chinese-owned debt, but stiff foreign debt holders.
But the word this morning is that the Chinese government is now telling them to avoid default on dollar-denominated bonds. After all, if investors worldwide decided that all Chinese debt was potentially toxic, that would leave connected Chinese communists in a world of hurt.
And we can’t have that.
The unusual thing about Evergrande is that they owe money to everyone:
It seems to me that what is interesting about Evergrande is not so much the magnitude of its debt problems but their variety. Evergrande owes money to Chinese banks. It owes money to foreign hedge funds, and foreign investors own its stock. It owes money to suppliers, and to Chinese retail investors in those wealth management products. And it owes apartments to buyers. And the retail investors who bought Evergrande wealth management products were often also Evergrande homeowners, because the products were sold at Evergrande buildings.
It even took out short-term loans from its own employees. Also, it’s evidently stopped paying some employees. I don’t know about you, but for me both those would be signs it was time to look for another job.
When a big company runs out of money, the basic questions are (1) who gets paid and who doesn’t and (2) should the government pay its debts for it? Those questions are interconnected. There is an ordinary way to answer the first question, some waterfall of claim seniority. You look at the company’s capital structure and say “well these people have senior claims and will get paid back, and these people have junior claims and won’t, and these other people are somewhere in the middle and might get some recovery.” And there are complex and subtle questions about the best way to preserve value in the business: Perhaps you have the legal right to stiff customers (perhaps their deposits aren’t particularly senior claims), but if you do that you’ll never get any more customers, so you treat them better than you are legally required to. And the managers of the business and the creditors and the lawyers work together to figure out a plan that maximizes the recovery for everyone.
But if the ordinary process to answer the first question ends up with an answer like “sympathetic ordinary people lose their life savings,” or “politically connected people lose everything,” or “the banking system loses a lot of money and becomes undercapitalized,” or for that matter “housing prices collapse,” then that is a good reason for the government to step in. And if the government is stepping in, there is no particular reason to assume that the ordinary claims of seniority will apply. If the government steps in to rescue small investors or the banking system or housing prices, that doesn’t necessarily mean it will also rescue foreign hedge funds.
Bloomberg’s Joe Weisenthal and Tracy Alloway did an Odd Lots episode with analyst Travis Lundy about this, in which he gives his best guess at a waterfall of repayment. “I think that if you start from the ranking of who ends up coming out well on this, if you had to ask, this is the Communist Party of China who’s the most important stakeholder in this,” he says, and then goes through a list of claimants ordered by, basically, how politically sympathetic they are. This seems like a more reasonable analysis than, like, looking at the corporate structure and legal document to see which claims are more senior.
After the subprime meltdown in 2008, steps were taken to reduce systemic risk in the American and European economies. China? Not so much.
Whatever the ultimately resolution of Evergrande, the Chinese real estate market still seems both way over-leveraged and horribly opaque.
That wasn’t Evergrande, but a dizzying succession of other firms:
The original developer was Kunming Xishan Land and Housing Development and Operation (Group) Co., Ltd. (hereinafter referred to as Kunming Xifang). The project covers an area of about 340 acres. It is planned to have residential, commercial and office buildings. It is divided into 4 plots for development and construction, namely A1, A2, A3, and A4. Among them, the A1 and A3 plots are commercial, and the A2 and A4 plots are residential, with a total construction area of approximately 630,000 square meters. Among them, the delivery of four high-rise residential buildings on the A2 plot has been completed, with a construction area of about 136,000 square meters.
In 2012, due to the break of Kunming Xifang’s capital chain, the project was taken over by Yunnan Tin Industry Real Estate Development and Management Co., Ltd. (hereinafter referred to as Yunxi Real Estate). The project was renamed Yunxi·Gemdale. In July 2013, due to various reasons, Yunxi Construction of Sikkim Land was suspended. 2014 was originally the delivery time for the A2 plot of Yunxi Jindi, but due to the suspension of the project, the delivery did not begin until March 2015. In addition to the 4 high-rise buildings in the A2 plot that have been delivered, the remaining three plots A1\A3\A4 totaling 15 high-rise buildings have been suspended since the end of 2013.
In order to solve the problems left over from the unfinished project, the government restarted the project through the listing and transfer of the Yunnan Provincial Property Rights Exchange. On December 29, 2020, Yunnan Honghe Real Estate Co., Ltd. obtained the right to develop the project through equity transfer.
According to Sun Zheng, general manager of Xifang Group’s Liyang Star City Phase II Project, on January 6 this year, Yunnan Honghe Real Estate Co., Ltd. acquired 100% of Kunming Xifang’s equity and 23,068,600 yuan of debt at a transfer price of 979 million yuan. At present, West Real Estate is a wholly-owned subsidiary of Honghe Land. In order to maintain the continuity of project development, Liyang Star City Phase II will continue to use West Real Estate as the main development entity.
Got all that? That’s just one development in one city you’ve never heard of. How many other ghost developments are there in China? Hundreds? Thousands?
Another real estate boondoggle: Why Shanghai Tower failed. “The Shanghai Tower is owned by Yeti Construction and Development, a consortium of state-owned development companies which includes Shanghai Chengtou Corp., Shanghai Lujiazui Finance & Trade Zone Development Co., and Shanghai Construction Group.”
Remember that declines in real estate holding values were huge drivers for Japan’s bubble bursting as well as the subprime meltdown that took out Lehman Brothers and Countrywide (among others).
Could China’s house of cards finally collapse in the same way? Very possibly. But remember this caveat:
China's economy can be about to collapse longer than you can remain short.
What has this desiccated, old weirdo achieved in his six weeks of semiconsciousness in the Oval Office? Well, there’s putting tens of thousands of Americans out of jobs, including union guys who voted for him. There’s telling the American people that their kids can’t go to school because public school teachers take priority over children because of science or something. There’s another war in the Middle East. Those are kind of accomplishments, but not really good ones.
His administration had someone named “Ducklo” who was mean to women. He had another who wants to be a woman and who wants to let your little boys be surgically turned into women. And Neera Tanden’s confirmation was blocked because she was a woman and totally not because she was an inept loudmouth.
If this is normalcy, what’s a freak show look like?
Are you * voters starting to feel a bit of buyer’s remorse? Let me ask it another way. Everybody enjoying your $2,000 check? Oh well. On the upside, they impeached Trump…and failed. Again, after sucking up two weeks of the Senate’s calendar. So, what do you have to show for yourself, * voters?
The massive coronavirus relief bill racing through Congress provides substantial new health-insurance subsidies to upper-income households. A 60-year-old couple with two kids making $200,000 would receive a subsidy of $12,000. In some parts of the country where premiums are high, families with incomes exceeding half a million dollars will qualify for thousands of dollars in subsidies to buy an ObamaCare plan. In contrast, a family of four making $40,000 receives an added benefit of just $1,600.
It also includes 25 weeks of paid leave for bureaucrats with children in closed schools. Meanwhile, parents with closed schools held hostage to teacher’s union who aren’t bureaucrats can drop dead.
Newly minted as a committeeman, Madigan was sent to the 1970 Illinois Constitutional Convention as a delegate representing Daley’s interests. He voted for the most constricting “pension protection” clause in the nation, which guaranteed government-employee unions benefits the government couldn’t afford in exchange for their backing of the Democratic machine, tying the state to an anchor of massive debt in perpetuity. He also voted for changes in the property-tax system that would later make him a millionaire through his law firm, Madigan & Getzendanner, which specialized in appealing the tax assessments of the most valuable real estate in the Midwest and skimming off the reductions granted by political allies who heard the firm’s appeals.
Later that year, Madigan was elected state representative for the 22nd House District of Illinois. He would go on to be reelected 25 times, eventually being elevated to House speaker after he was made gerrymanderer-in-chief following the 1980 Census. The redistricting process had been expected to hurt Democrats badly, but Madigan’s cartographical cunning staved off a political bloodbath and earned him the title of “political wizard” from the Chicago Tribune. Many representatives now owed their seats to his pen, and they elected him speaker in 1983.
For all but two of the next 38 years, he would hold the speaker’s gavel, wielding parliamentary rules that gave him more power than any other legislative leader in the country. His one-man rule was finally merged with the party power structure in 1998, when he became chairman of the Democratic Party of Illinois. This made him a one-stop shop for special interests looking to pass or kill legislation. Commonwealth Edison, the state’s largest utility provider, last year was forced to pay a $200 million fine for attempting to bribe Madigan by providing no-work contracts and other perks to the speaker’s inner circle. Though he denied wrongdoing, the scandal ultimately hastened his downfall.
The wreckage of Madigan’s decades-long reign is obvious. When he became speaker in 1983, Illinois had a perfect credit rating. Since 2013, it’s had the worst credit rating in the nation, just one notch above junk. The reason is that while Daley built his political army with federal money, Madigan built his with state money, specifically state debt. Political foot soldiers owed generous pensions, early retirements, and other perks to the speaker’s protection. His fingerprints are on nearly every bill that enhanced state pension benefits, borrowed money to cover their costs, or shorted contributions to the systems to avoid difficult choices over the course of his 50 years in power.
The result of all those unsustainable promises is the most severe public-pension crisis in U.S. history, one with far-reaching implications for Illinois government. Since 2000, the state has cut spending on child welfare and other programs that help those in need by one-third after adjusting for inflation. Over the same time, spending on pensions and pension debt has increased 501 percent. The same story plays out at the local level, as Illinoisans are saddled with property-tax bills on par with their mortgages — bills that sap home equity out of once-prosperous Black communities, particularly — in exchange for sub-par services that get worse each year.
If you haven’t read New York magazine’s interview with David Schor, an Obama campaign veteran and liberal data analyst, it’s worth your time.
His post-mortem of the 2020 election shows how Democrats have increasingly become a party of college-educated whites, whose hard-left views aren’t fully shared by the black and Hispanic communities they claim to champion. His findings echo the concerns of older progressive analysts such as John Judis.
Between the 2016 and 2020 elections, Schor finds, Democrats gained 7 percent among white college grads, but lost 2 percent of African Americans and 8 to 9 percent of Latinos, as well as about 5 percent of Asian Americans.
Socialism and “defund the police” were the chief reasons, Schor says: “We raised the salience of an ideologically charged issue that millions of nonwhite voters disagreed with us on.”
Even on immigration, “If you look at, for example, decriminalizing border crossings, that’s not something that a majority of Hispanic voters support,” Schor says.
Speaking of Biden nominations in trouble, Xavier “I Hate Nuns” Becerra’s nomination is no slam dunk either.
When I saw a headline on a deadly crash involving an SUV carrying 25 people, I went “Obviously it must have been full of illegal aliens.” Well, guess what?
In a just world not plagued by a fake and corrupt media, Gov. Andrew Cuomo (D-NY) would be on the edge of resigning his office today, not over a handful of times he allegedly got aggressive with women, but over his sociopathic executive order that required nursing homes to accept patients still infected with the coronavirus.
That, after all, is the real scandal here, the true scandal, an act so monstrous Cuomo knew he had to cover it up, which he did by falsely blaming the order on the Trump administration and then lying about just how many seniors died as a result.
But instead of being pressured to resign over that, he’s being hit with perfectly-timed allegations of sexual misconduct, two involving former staffers, one involving a complete stranger he met at a wedding.
As these things go, while his alleged behavior is inappropriate (especially in the workplace), it’s nothing compared to the credible allegations against His Fraudulency Joe Biden, which involve a full-blown sexual assault allegation. Biden got away with much, much worse, so…
So what’s going on? Why is America’s corrupt media not at all interested in some 15,000 dead senior citizens while they tar and feather Cuomo over the allegations he made three left-wing women uncomfortable?
The answer is obvious…
Four other Democrat governors issued the same sociopathic nursing home order as Cuomo. Four other Democrats ordered infected coronavirus patients be admitted into nursing home facilities where 1) the most vulnerable live, and 2) they’re not set up to handle an infectious virus.
What this means is that if the corrupt media were to do the right thing (like that will ever happen) and go after Cuomo over his deadly nursing home policy, it would open a Pandora’s Box against these four Democrat governors and the Democrat party as a whole, which is something our fake media will never do.
Democrats must be protected at all costs, even if the cost is thousands and thousands of lives.
So welcoming was the Kennedy clan that the exes of either sex stayed on as friends. Andrew put a stop to that. For Kerry, that meant no more former boyfriends, not even those whom the Kennedys regarded as family. That was the word, and Andrew was dead serious about it. The new rule reinforced the doubts the family had had about Andrew from the start: he wasn’t fun; he didn’t get fun. He was, to put it mildly, a spoilsport. Unlike the Kennedys, too, he didn’t mask his ambition with charm, and no one, not even his in-laws, would stand in his way. And, as Andrew’s star at HUD rose, he seemed increasingly to regard those in-laws with disdain.
He hated the gatherings in Hyannis; he always felt like the odd man out. The joshing around, the freewheeling talks—Andrew was just too tightly wound to join in. One night, as was typical, the family began singing songs, each member singing a favorite. “The Kennedys are terrible singers, but it’s one of the great joys,” explained Douglas Kennedy. “One time Joe [Jr.] is up there, and he sings ‘Danny Boy,’ and everyone is happy about it. Except Andrew. He’s on the couch with his arms folded, looking disgusted by the whole thing. Everyone is calling for someone else to sing a song. ‘Andrew, you sing,’ someone says. But he says, ‘No, I’m not Irish.’ So someone else says, ‘Sing something Italian.’ Andrew still won’t, so I sing ‘Volare.’”
Andrew stopped going to Hyannis at one point, a family member recalled. But he made sure to be with the clan at any gathering covered by the media. Early on, the family noticed that at every visit to Arlington Cemetery to honor their father or uncle, Andrew situated himself just so. “He would always find the exact perfect place to stand so he could be in the newspaper the next day,” recalled a relative. “So if that meant grabbing [Ethel’s] hand and walking to the grave, or standing next to John or Caroline, he would get himself in the frame. That was his whole thrust.”
[Kenneth Pollack’s Armies of Sand: The Past, Present, and Future of Arab Military Effectiveness] identifies key aspects of Arab culture relevant to the book: conformity, centralization of authority, deference to authority and passivity, group loyalty, manipulation of information, atomization of knowledge, personal courage, and ambivalence toward manual labor and technical work. One can see how these values and behaviors will negatively affect military performance, especially the most glaring problem for Arab armed forces: poor tactical leadership from junior officers. Consistently, these officers fail to show any initiative or creativity—they rarely if ever adapt quickly to changing circumstances in battle. This makes perfect sense, though, if one considers these soldiers were trained to conform and defer to authority. This stands in stark contrast to the Israeli military, whose soldiers were raised in the “Start-up Nation,” which encourages innovation from all ranks.
The education system in Arab societies drilled in these values to the point that they became central to soldiers’ behavior. “Typical Arab educational practices relentlessly inculcated the values, preferences, and preferred behavior—the culture—of the wider society,” Pollack writes.
Pollack also explains that Arab military programs are modeled on the educational methods of the larger society, reinforcing certain patterns of behavior and conditioning soldiers to act and think in “ways that reflect the values and priorities of the dominant culture.”
I was told on multiple occasions that discussing my personal thoughts and feelings about my skin color is a requirement of my job. I endured racially hostile comments, and was expected to participate in racially prejudicial behavior as a continued condition of my employment. I endured meetings in which another staff member violently banged his fist on the table, chanting “Rich, white women! Rich, white women!” in reference to Smith alumnae. I listened to my supervisor openly name preferred racial quotas for job openings in our department. I was given supplemental literature in which the world’s population was reduced to two categories — “dominant group members” and “subordinated group members” — based solely on characteristics like race.
Every day, I watch my colleagues manage student conflict through the lens of race, projecting rigid assumptions and stereotypes on students, thereby reducing them to the color of their skin. I am asked to do the same, as well as to support a curriculum for students that teaches them to project those same stereotypes and assumptions onto themselves and others. I believe such a curriculum is dehumanizing, prevents authentic connection, and undermines the moral agency of young people who are just beginning to find their way in the world.
Although I have spoken to many staff and faculty at the college who are deeply troubled by all of this, they are too terrified to speak out about it. This illustrates the deeply hostile and fearful culture that pervades Smith College.
Sad news: Austin-based movie theater chain The Alamo Drafthouse has filed for Chapter 11. That’s reorganization, so most theaters will stay open. A good thing, too, since I’ll probably see Godzilla vs. Kong there…
Papa Johns founder John Schnatter vindicated. Laundry Service “the branding company hired which was hired by Papa John’s to improve its image, was caught on a ‘hot mic’ brainstorming ways in which it could use comments made by Schnatter to damage his image.”
It’s also possible every guy they showed this too to get feedback was terrified he’d get fired for sexual harassment if he mentioned it looked like a money shot in a porn video.
"I have always put my own money into #tailsofjoy. For years, every time a dog walked by, my husband would say, 'There goes our beach house'."-@ElayneBoosler
This is going to be one heck of an interesting case. There are already so many glaring issues (or should I say “targets”?): venue, good faith filing, disclosures, the automatic stay the trustee question, fiduciary duties to pursue claims against insiders, executory employment contracts, the fate of Wayne LaPierre, and the generally overlooked governance provisions of the Bankruptcy Code. I’ll take quick aim at these all below.
Venue. Right off the bat, there’s a question of what the heck the NRA is doing filing in Dallas. The answer is that the NRA is engaged in one of the most blatant forum shopping maneuvers I’ve seen. The NRA is a New York non-profit corporation with its headquarters in Virginia. The NRA is claiming Dallas venue on the basis of an affiliate’s previous filing in the district. In other words, venue is only proper for the NRA if the venue is proper for the affiliate.Therefore, the propriety of the affiliate’s venue is what matters.
The affiliate is a sole-member Texas LLC called Sea Girt LLC that was only created 52 days ago, on November 24, 2020. Sea Girt’s bankruptcy petition indicates that it has less than 49 employees, under $50,000 in assets and between $50,000 and $100,000 in liabilities. Note that the petition form does not have an option of listing “zero” employees. Sea Girt’s petition does not include a completed Form 204, which would list is largest non-insider unsecured creditors. But I’m going dollars to donuts that Sea Girt does not have any outside creditors other than perhaps its law firm, and that it does not actually carry on any business.
Now the bankruptcy venue statute prescribes the appropriate venue as being the district in which the “domicile…of the entity that is the subject of such case [has] been located for one hundred and eighty days immediately preceding such commencement, or for a longer portion of such one-hundred-and-eighty-day period than the domicile … of such person were located in any other district.” So even though Sea Girt LLC has not been in existence for 180 days, the statute still provides for a Texas venue. But the venue here is so obviously contrived and the NRA has no particular connect to Texas, so I expect there to be an attempt to have the case transferred to SDNY.
Good faith filing. A second immediate issue seems to be whether the NRA (and Sea Girt) filed in good faith. Every circuit including the 5th) has a good faith filing doctrine. The doctrine in a nutshell is that if a bankruptcy case does not have a “valid reorganizational purpose,” it should be dismissed “for cause.” Attempting to evade liability in litigation is not a “valid reorganizational purpose,” and the NRA’s press release seemed to me a version of the press release in SGL Carbon, the leading 3rd Circuit good faith filing doctrine case. In SGL Carbon, the debtor foolishly said that it was filing for bankruptcy just to stiff a competitor that had an antitrust suit against it and assured its other creditors that they would be paid in full. That sounds an awful lot like “dumping New York” while saying that all valid claims will be paid in full. (My students might recall me cautioning them that a debtor’s attorneys should insist that they get to sign off on all press releases and communications related to the bankruptcy for just this reason…) Now, the NRA isn’t looking to avoid paying NY. Instead, it is looking to escape NY’s jurisdiction. But that seems a distinction without a difference. It isn’t hoping to use bankruptcy to reorganize its finances, but to get out of the lion cage.
Snip.
Disclosure. Filing for bankruptcy is a bit like entering a fishbowl. Everything is on display. First, creditors are entitled to conduct an “examination of the debtor” under oath at the initial meeting of the creditors (the “341 meeting.”) Additionally, an individual creditor may under Bankruptcy Rule 2004 undertake an examination of the debtor. (And that includes creditors who are creditors by virtue of by claims–that could include gun-control groups among others.) There’s certainly room there for questions that get to the reasons for filing, namely whether there was any financial reason for filing.
Automatic Stay? Another issue is whether the bankruptcy filing will in any way stop the NY AG’s action to dissolve the NRA. At the very least, the automatic stay should not. There is an exception in section 362(b)(4) from the stay for regulatory actions that are not seeking money from the debtor, and the NYAG suit seems squarely in that exception. It’s possible that the NRA will seek a supplementary injunction from the bankruptcy court, however.
Trustee or Conversion. While I would expect a venue motion or a motion to dismiss the case, I would also expect a motion for appointment of a trustee or conversion to chapter 7 (which would trigger a trustee). The NRA seems like a classic case for this—there are credible allegations of serious financial impropriety involving the current management (namely executive VP Wayne LaPierre). That both fits into the “fraud, dishonesty, incompetence, or gross mismanagement” route for a trustee’s appointment, or into the “best interests of the creditors” route. Two key things if a trustee is appointed. First, the trustee will hold the NRA’s attorney-client privilege, not Mr. LaPierre. Mr. LaPierre will not be able to claim privilege for any conversations he had with the NRA’s attorneys. Second, a trustee has every incentive to pursue all of the NRA bankruptcy estate’s claims, including against Mr. LaPierre. That brings us to the next topic, the debtor in possession’s fiduciary duties.
Fiduciary duties. The NRA as debtor in possession is a fiduciary for all of its creditors. That means, among other things, that if the NRA has potential claims against Mr. LaPierre or others, including fraudulent transfer claims, it must pursue them. Mr. LaPierre as EVP cannot decide whether to litigate against himself. If he’s too conflicted, that will mean that the court will either have to appoint a trustee or let a creditors’ committee pursue the claims.
Snip.
The fate of Wayne LaPierre. Putting aside Mr. LaPierre’s employment contract, he’s got another problem. The NY AG suit isn’t just against the NRA. It’s also against Mr. LaPierre and some of his lieutenants. LaPierre and his lieutenants have not filed for bankruptcy, and even if the NRA is able to convert to a Texas corporation, the NYAG’s suit against Mr. LaPierre can still proceed. The NYAG is seeking restitution from LaPierre as well as a bar from his ever soliciting funds for a nonprofit in NY (not just for a NY nonprofit). Moreover, if NY is successful, it might well create problems for LaPierre serving as an officer of a nonprofit in another state. All of which is to say that the NRA fleeing to Texas doesn’t address Mr. LaPierre’s problems.
Once again, LaPierre is the millstone dragging down the NRA. The best outcome would be for the NRA to successfully reincorporate in Texas…but without LaPierre and his cronies bleeding the organization dry.
The National Rifle Association announced Friday that it has filed for bankruptcy and will move out of New York and restructure the organization as a nonprofit in Texas.
The nation’s leading gun rights advocacy group said that the move to Texas will enable the group to “exit what it believes is a corrupt political and regulatory environment in New York.”
“By exiting New York, where the NRA has been incorporated for approximately 150 years, the NRA abandons a state where elected officials have weaponized the legal and regulatory powers they wield to penalize the Association and its members for purely political purposes,” the NRA said in a statement.
New York Attorney General Letitia James filed a lawsuit seeking to dissolve the NRA in August, alleging that senior leaders of the group misused tens of millions of dollars, diverting the funds for personal use and other illegal purposes.
The NRA denied the allegations and filed a lawsuit of its own against James, accusing her of violating the group’s free speech rights and requesting that her investigation be blocked. The move to Texas and restructuring of the group could prevent the New York attorney general from seeking the dissolution of the group.
The group filed Chapter 11 petitions in U.S. Bankruptcy Court in Dallas, listing assets and liabilities of $100 million to $500 million.
There are a lot of good reasons for the NRA to move from New York to Texas apart from the lawsuit (though that’s a pretty big one), but it won’t be restored to a fully functioning organization until Executive Vice President Wayne LaPierre is gone.
The NRA has been in crisis for over a year because LaPierre has engaged in what appears to be systematic looting through contracts to media company Ackerman McQueen and other entities that seem very, very chummy with LaPierre:
This 100-page document…contains unprecedented disclosures of where the money categorized as expenditures for “fund-raising” and “public relations” actually went. For example, it was revealed for the first time the Mercury Group, an Ack-Mac subsidiary run by LaPierre’s closest confidant, Tony Makris, received $5.8 million from NRA in that year; another Makris-run company, Under Wild Skies, got $2.6 million. Meanwhile, NRA has nearly exhausted its $25 million credit line (secured by a mortgage on its headquarters building), liquidated $2 million from an investment fund, borrowed close to $4 million from its officers’ life insurance policy and extracted about $5 million in office rent and overhead from the NRA Foundation.
This, in the same year that NRA’s 10 highest-paid executives received compensation aggregating over $8 million.
Unfortunately, the NRA is structured so that LaPierre has more institutional power than the NRA’s elected President, something Oliver North found out. The NRA needs LaPierre out and a forensic audit to uncover past abuses before gun owners give it another dime. I’ve let my membership lapse because of the crooked self-dealing on display by LaPierre and his cronies, and I suspect there are millions of other gun owners like me. Instead I joined Gun Owners of America, because I know my membership fees won’t be going to line Wayne’s pockets.
No Lawyers – Only Guns and Money has been following every twist and turn of the NRA/LaPierre problems for years, so go over there and start reading if you want all the deep background on the situation.
So what did it take to turn spineless lefty Portland Mayor Ted Wheeler into a law-and-order guy? Trying to create an “autonomous zone” on his own street. “By 1 a.m., elaborate barricades had been erected. But in the early hours of Thursday morning, police moved into the area, declaring it an unlawful assembly. Portland Police estimated about 50 people were in the area when they dispersed the autonomous zone.”
It’s certainly frustrating to watch a pack of reeking leftist scumbags declare a portion of an American city an “autonomous zone” – what is it with Democrats and their secession fetish? – but do not get frustrated because Donald Trump has not sent the 101st Airborne in to powerwash the human grunge from Seattle’s feces-bedecked streets.
That’s what the Democrats want. And Trump – a better strategic thinker than all the media geniuses, hack politicians, and Afghan War-losing generals who cry about him – is not only not going to give them the victory they crave. He’s going to jam their cheesy plan down their throats.
The libs’ plan to win in November corresponds to Trump’s plan to crush them yet again. Skeptical? Consider this. In the five years since he rode down that escalator bringin’ hell with him, how many times have they come at Trump and won? Zero. He’s spent half a decade on the edge of doom and he’s still here. Why would you think that the walls are suddenly closing in now? You shouldn’t.
Let’s understand the strategic scenario. The long-term strategic objective of the leftists is to turn the United States into Venezuela, and they want to be Maduro. The major strategic objective that will put them in position to do so is victory in the November elections. Everything happening right now is part of their overall strategy to achieve that objective. But what kind of operation are they using to achieve that objective? There are two types of operations relevant here – kinetic and information. A kinetic operation is actual warfare. It’s violence designed to defeat the enemy and cause his surrender by either physically destroying him or occupying his territory and compelling surrender. An information operation is designed to affect the perceptions, and thereby the actions, of the target. Kinetic ops tend to do something to the enemy; and info op tends to get the target to do something to himself.
Elections are usually information operations. They attempt to build a narrative and play on perceptions and cause the target to take the action that will lead to victory. That is, get the target (the electorate) vote for the candidate the info operator wants elected.
Okay, so what is the 2020 elections, with the rioting, vandalism, violence and occupations?
This still an information operation, not a kinetic one.
They want to convince us we are powerless, that everyone else supports their commie agenda, that we cannot win. Their tactics are designed to create that impression and crush our morale. These include the 24/7 media hype, the outright media lies, the movie stars with their dumb PSAs, the staged statue attacks, the corporate solidarity proclamations, the social media cancellations, and the craven kneeling by people who are supposed to stand up for us. But another tactic, familiar to any student of insurgencies, is to provoke an overreaction by those in power in order to undermine its moral authority. They want is to make us (including the president) think this is a kinetic operation, and get our side to make fundamental strategic errors by failing to recognize the true nature of the threat. They hope that such a mismatch between perception and reality will then lead to gravely damaging blunders. One of those would be Trump succumbing to his legit frustration and sending in a bunch of federal troops to crack skulls in Seattle.
Defining this insurgency as a kinetic operation supports the leftists’ information operation goal of making Americans perceive the situation as out of control, of there being chaos, and of making the election of Grandpa Badfinger being the only thing that will resolve the situation. But there is no kinetic situation to resolve – at least none that is strategically significant in a kinetic sense. Despite the hype, the protests may have involved a peak of 2 million people across the country – out of 330 million. That’s nothing kinetically; it’s significant informationally because it is pushed by so many cultural influencers. The scurvy scumbags of Antifa hold essentially no ground except the turf they are physically standing on at the moment, and that is minuscule. Even the hilarious Road Warrior Republic of Seattle is not even a rounding error of a rounding error in terms of US territory. It’s significant only in the context of an information operation.
Many of us cons are furious that Trump is “doing nothing.” This is the wrong thing to think. Trump is only doing nothing if this is a kinetic operation; because this is an information operation, not going kinetic (sending in the troops) is doing something. And in fact, Trump is employing the law enforcement component of his kinetic assets by having the feds wait and arrest Antifa types after the protests end, and hitting them with hardcore federal rioting-related charges. Previously, they would get ticketed and released; now, looking at a five-to-ten stretch, the lawyers their daddies hired to get these sunshine anarchists out of their beefs are going to be advising them to roll over so they can start back up at Cornell in September and not at Leavenworth.
Who benefits then from our national nervous breakdown that never seems to end?
It is the globalist elites who still govern most of our society today, despite the invasion of Donald Trump.
And those elites wish to continue that rule through what they fervently hope will come as the outcome of these demonstrations—more government control, particularly government control that helps them.
They have seen it done elsewhere with results they might want to emulate, at least until recently.
Call it China Envy.
The Chinese Communist Party has, over the years, found a way to regulate their society to an extraordinary degree via a form of communism that maximizes profits and power for those (party) elites while holding the masses largely at bay.
No wonder our elites are jealous.
People call ours “globalists” but they’re not really global. They’re selectively global, but actually just greedy and power-hungry, like the ChiComs.
Whether planned or not, or partially planned, the current confluence of catastrophes has offered them an opportunity to advance their cause against their natural adversary, Mr. Trump.
In macro, that is the landscape of election 2020—the globalist elites represented, for the moment anyway, by Joe Biden versus the American people, represented by Donald Trump.
Many of those American people, heavily influenced by the media and repelled by the president’s rhetoric, do not realize that he is representing them, but he is. Ignorant, often willfully, they oppose him tooth and nail.
An equal number, or possibly larger, as the one million plus requesting tickets to his Tulsa rally indicates, supports Mr. Trump.
We are in the midst of a Battle Royale for the soul of our nation, whether it remains more or less the democratic republic the Founders envisioned or becomes an Americanized version of what has been evolved by the CCP.
If the latter, ironically, then such groups as Black Lives Matter (BLM) and Antifa will be kicked to the curb once victory has been achieved and secured.
It’s always the same thing: Our newspapers are full of intense interest in Harvard’s admissions standards but have very little to say about New York City’s dropout rate. People can’t help being fascinated with themselves and their peers. If you want to know what is on the minds of the leaders of the American ruling class, it’s no secret. They’ll tell you, if you ask — and if you don’t.
George Floyd is still dead. Jacob Frey is still mayor of Minneapolis. Medaria Arradondo is still the chief of police. More than a third of black students will drop out of high school in Milwaukee. But Forbes has announced a change in its in-house stylebook and will henceforth honor the woke convention of uppercase Black vs. lowercase white. And George Floyd is still dead. Jacob Frey is still mayor of Minneapolis. Medaria Arradondo is still the chief of police.
Oh, but they got James Bennet, the opinion editor at the New York Times. And surely that is something? It is, indeed, a very useful illustration of the E-Class vs. S-Class divide. Bennet was fired after purportedly endangering the lives of black Times staffers — a charge no mentally normal adult actually takes seriously — by publishing a guest column about the riots and the Insurrection Act by Senator Tom Cotton. The campaign to end Bennet did not come from America’s poor black communities as the workers of the world looked up, stunned, from page A24 of the New York Times — the venom came straight and undiluted from 620 Eighth Avenue, New York, N.Y., with Bennet’s underlings and juniors more or less putting him on an ice floe and pushing him out to sea.
Bennet was pushed out on behalf of marginalized black Americans, which necessitated that Bennet immediately be replaced by . . . a well-off white woman who went to Georgetown and Columbia and won a Pulitzer Prize for writing about that great loathsome theater of American middle-class anxiety: restaurants. (“The real price of inexpensive menu items,” the Pulitzer people summarized.) Well-off white women from elite colleges run the diversity-and-sensitivity racket like the 17th-century Dutch ran the tulip racket, like the De Beers cartel used to run diamonds. Big Caitlyn is getting paid. Affluent white women are the main E-Class beneficiaries of the current headhunting project to clear a little room at the top, just as they have historically been the primary beneficiaries of affirmative-action programs, contracting set-asides, and other programs to help out the poor disenfranchised Georgetown alumni out there in the cold and dark.
“Police, Fire Reportedly Refused to Respond to Crime in Progress in Seattle’s Breakaway CHOP.” “This is where ‘defund the police’ will lead not just in Seattle, but wherever it’s thoughtlessly implemented. Probably not all the way to the segregationist, secessionist CHOP, but to crime-ridden streets into which police and fire are more circumspect about intervening.”
these riots and their associated melodrama might most accurately be called the Nov. 3 riots. It’s the prospect of the election, especially the possibility that President Donald Trump will be reelected, which provides the fuel for the current hysteria.
But Simon is right. A solid majority of voters are disgusted by what they see. There is a large overdraft on the country’s budget of white guilt. Expect a foreclosure on the account Nov. 3. Yes, yes, the situation is fluid and a week, as Harold Wilson once observed, is a long time in politics. But a biopsy of the body politic in mid-June 2020 doesn’t bode well for the old man in the basement or scriptwriters Nancy Pelosi and Chuck Schumer.
The longer this madness continues, the more likely it is that the president will enjoy a victory of historic proportions.
Another caveat about all those “Oh my God, Wuhan coronavirus cases are spiking in Florida,” etc. stories, take a look at these statistics. Assuming they’re accurate (a big assumption), new cases are going up (not spiking per se), but deaths are going down. It really looks like cases aren’t spiking, we’re just detecting milder and milder cases of it thanks to widespread testing.
Instead of #BlackLivesMatters, how about actually defending black lives? “National African American Gun Association (NAAGA) Membership Grows as Members Purchase Ammo in Record Numbers.” Good. (Hat tip: Say Uncle.)
Good news in a sea of bad: Austin Police Chief Brian Manley is not getting the axe. Finally, a scalp the radical left didn’t take.
Antifa members arrested in Austin for looting. “Lisa Hogan, Samuel Miller, and Skye Elder were arrested last week and charged with various state jail felonies after they smashed into a boarded-up Target, destroyed and ripped out surveillance cameras, and looted the store, stealing and damaging over $20,000 in property.” The mugshot:
Exactly the sort of Antifa winners you would expect to loot a Target
Chuck-E-Cheese files for bankruptcy. When they had to make it on the quality of their food, they were doomed…
Also filing for bankruptcy: 24 Hour Fitness. Hard to make a living when the government outlaws your business model. (Hat tip: Instapundit.)
Rocket fuel storage facility explosion in #China, the air catches fire before the explosion, the orange smoke is a clear indication of rocket fuel. The Shockwave shatters the glass of the nearby textile mill. You will not find this story on Chinese "news"
After being denied a review of his 2015 misdemeanor conviction by the Texas Court of Criminal Appeals, Democratic State Rep. Ron Reynolds (Missouri City) will likely serve a one-year jail sentence for illegal solicitation of legal services.
The sentence stems from a scheme in which chiropractic firms would persuade patients to unwittingly sign contracts rendering Reynolds their legal counsel without either his presence or even a physical examination. He was found guilty of 5 misdemeanor charges in 2015, after which he appealed his conviction to the Court of Criminal Appeals.
The kicker?
Although Reynolds will likely serve jail time, he is not required under Texas law to resign his Texas House seat, as the Texas Election Code only requires resignations in the case of felony convictions. Reynolds won his Democratic primary election in March with over 60% of the vote and faces no Republican opposition in November.
Someone in the state GOP fell down in the recruiting department…
(Also, I missed this: Rep. Reynolds had to file for Chapter 7 bankruptcy in 2016…)
