Archive for the ‘Waste and Fraud’ Category

New PayPal Walmart Phishing Scam Making The Rounds

Monday, August 22nd, 2022

There’s a new phishing scam making the rounds. I’ve received examples of this one twice myself over the last week, and since it’s a lot more sophisticated and polished than the average email phishing scam, I think it’s worth taking a look at.

Scammers are using invoices sent through PayPal.com to trick recipients into calling a number to dispute a pending charge. The missives — which come from Paypal.com and include a link at Paypal.com that displays an invoice for the supposed transaction — state that the user’s account is about to be charged hundreds of dollars. Recipients who call the supplied toll-free number to contest the transaction are soon asked to download software that lets the scammers assume remote control over their computer.

KrebsOnSecurity recently heard from a reader who received an email from paypal.com that he immediately suspected was phony. The message’s subject read, “Billing Department of PayPal updated your invoice.”

While the phishing message attached to the invoice is somewhat awkwardly worded, there are many convincing aspects of this hybrid scam. For starters, all of the links in the email lead to paypal.com. Hovering over the “View and Pay Invoice” button shows the button indeed wants to load a link at paypal.com, and clicking that link indeed brings up an active invoice at paypal.com.

Also, the email headers in the phishing message (PDF) show that it passed all email validation checks as being sent by PayPal, and that it was sent through an Internet address assigned to PayPal.

Both the email and the invoice state that “there is evidence that your PayPal account has been accessed unlawfully.” The message continues:

“$600.00 has been debited to your account for the Walmart Gift Card purchase. This transaction will appear in the automatically deducted amount on PayPal activity after 24 hours. If you suspect you did not make this transaction, immediately contact us at the toll-free number….”

As always, look at every message from any financial institution as a potential phishing attack, so never click on links sent in email. Use your regular browser login to see if it’s a real issue, and if it’s a phishing scam, be sure to report the email in question.

Let’s be careful out there…

LinkSwarm for August 19, 2022

Friday, August 19th, 2022

Greetings, and welcome to a Friday LinkSwarm…on Friday! What are the odds?

  • More dispatches from the Biden Recession: “Homebuyers are GONE.” Home sales are cratering nationally, companies that bought up lots of properties are slashing prices, and the number of homes being built is also cratering.
  • From the same guy: The 10 locations housing prices will crash the most. #5? Austin. “This is a market in absolute free-fall.” I know prices in my neighborhood have probably lopped off a good $100,000 or so, forcing me to rely on my vast book holdings to remain a millionaire…
  • Are we witnessing an end to the tranny pander panic?

    The other day, I saw on Twitter someone saying that they are a good liberal and all that, but they are really worried about what they’re seeing regarding the emerging culture of the medical and teaching professions encouraging children to transition to the opposite sex. “But,” said this person, “I don’t want to surrender to a moral panic.”

    I submit to you that a moral panic is precisely the correct response to this egregious phenomenon. That is, what is happening is so hideous, and so widespread, and the reaction by most people to this point has been so muted to non-existent, that if you are not panicking, you are not paying attention.

    Most people are not on Twitter, and if you’re one of these people, you may not be aware of the extent of the insanity. The media are not covering it, of course. It falls to badasses like Matt Walsh, Chaya Raichik (who runs the Libs Of Tik Tok account), Christina Buttons, and Chris Elston, the guy who runs the Billboard Chris website and Twitter account, to sound the alarm.

    The things they document are not nut-picking (the practice of finding extreme weirdos, and falsely using them as an example of the whole). They are completely mainstream. These are things that, if we had a functional media instead of a Narrative-massaging industry, would be widely reported, and discussed intensely.

    (Hat tip: Stephen Green at Instapundit.)

  • Libs of TikTok on how the radical social justice groomer left wants to sever the connection between parents and children.

    The Left’s agenda to groom your children has taken another turn. Various states across America have begun implementing laws and policies to allow children to make healthcare decisions without a parent or guardian’s consent — and the medical industry is promoting it. Many of these states are using these new laws to allow for drastic medical decisions to be made without parental consent including hormone therapy, gender reassignment surgery, and medicated mental health treatment.

    In Washington, children as young as 13 are now allowed to undergo gender reassignment surgery and other questionable medical treatments without parental consent.

    One Washington dad alleged in a viral TikTok video that a school gave his 15-year-old child antidepressants without informing him. Sounds completely insane and illegal, right? Well . . . it sounds that way, but it isn’t. Under Washington law, this is 100% legal and is allegedly being carried out by schools.

    New York has hopped on the bandwagon of removing parents from the treatment room as well. New York-Presbyterian recently sent out emails to their patients explaining that accounts for 12-17-year-olds must be updated to reflect the adolescent’s personal email address as the primary contact as New York State law allows children “to keep their sensitive medical information private and to consent to some of their own medical treatment.”

    Twelve-year-old children will now have the ability to be the primary decision-maker for many of their medical treatments and procedures. Children will also have the ability to completely revoke medical record access for their parents or guardians. 12-year-old children who can barely do their own laundry now have authority over their healthcare.

    Snip.

    One concerned parent in Kennebunk, Maine shared photos with us of a medical questionnaire for patients 12 years of age and older which read “To be filled out by patient only.” The questionnaire included questions about sexuality, asking children what gender they’re attracted to, and if the child has ever been in a romantic relationship or had sex. Separate questions ask the children if they’ve ever had questions about their gender identity and what their preferred pronouns are.

    The parent spoke to me regarding the questionnaire and stated her child was given the forms right after he turned 13. Naturally, her son was uncomfortable and confused by the questions and asked his mom for help. However, the mom claims the doctor made her leave the room and refused to allow her to be present while her son was answering the questionnaire.

    Why would a doctor need to secretly know the sexual preference and gender identity that a 13-year-old child claims without his mom present? Why would any child be required to share answers to all these invasive questions and bar any parental involvement?

    It’s not just Maine, Arizona, New York, and Washington — the removal of parents from important decisions in their children’s lives is becoming a nationwide policy trend aggressively pushed by the Left.

  • Given how much Libs of TikTok has uncovered of the groomer agenda, it’s no wonder that Facebook has banned her:

  • Austin Fire Department Chaplain Fired over Blog Post Objecting to Males in Women’s Sports.” No surprise to followers of Austin politics, given the way their union has been taken over by the radical left.
  • Related: “Twitter Is Objectively Pro-Groomer.”
  • “Sanctuary cities not enjoying actually being used as sanctuaries.”

    To the great consternation of liberal Democratic mayors in the northeast, the governors of Texas and Arizona continue to send busloads of illegal migrants to New York and Washington to lessen the burdens on their states and draw more attention to the Biden border crisis. This has put the municipal governments of these self-defined sanctuary cities in a bit of a tough position politically. They are supposed to represent bastions of hope for the migrants and freedom from the “oppression” of ICE and the Border Patrol. But now that the migrants are arriving in larger numbers and doing so in a very public way, it’s becoming clear that this is a problem that the mayors were not prepared to handle. As Charles Lipson explains in Newsweek today, these so-called sanctuary city claims were clearly more of a case of virtue signaling than anything else, but when the cost of invoking such policies began to rise, the backlash came quickly.

    (Hat tip: Ed Driscoll at Instapundit.)

  • New Minnesota union contract requires laying off teachers based on race rather than ability or seniority. Can you say illegal? (Hat tip: Sarah Hoyt at Instapundit.)
  • Longtime CNN anchor, leftwing tool and known potato Brian Stelters had his show cancelled and was laid off. There’s not a violin small enough.

  • How the left abandoned Salman Rushdie.

    I still don’t understand Obama’s deep infatuation with Iran’s mullahs, or why he sent them pallets-full of currency, or why he desperately wanted to get nuclear technology to Iran. But I suspect his enthusiasm for providing nuclear technology to Iran was in equal proportion to his enmity toward Israel.

    So how was the American left supposed to keep championing Mr. Rushdie when Barack Obama, their Lightbringer, was such a fan of the mullahs who wanted Rushdie dead? Barack Obama had taken American tax dollars and sent it to the mullahs so that they could then turn around and use that money to pay the bounty to whomever successfully pulled off the fatwa against Rushdie. To stay true to Obama, America’s liberal elites had to now ally themselves with the men trying to murder Rushdie.

    Conservatives, of course, always supported Rushdie’s right to free speech and always decried the fatwa on him. But for those who matter most in elite society, the fatwa now reflected poorly on Rushdie, not those who imposed the fatwa.

    Rushdie was abandoned by the left, because they were now aligned with the mullahs who wanted him dead.

  • Over in London, unions are working on their Winter of Discontent cosplay by launching a Tube strike.
  • Families are getting the hell out of north Portland due to the huge increase in drug-addicted transients ts infecting their neighborhood. This is your city on social justice.
  • Turkey’s wild and crazy president Recep Tayyip Erdogan continues his innovative “lower interest rates during hyperinflation” gambit. Result? The Lira has crashed to an all time low.
  • Remember San Angelo police chief Tim Vasquez, who accepted bribes via gigs for his Earth, Wind & Fire cover band Funky Munky? Well he just got sentenced to 15 years in the slammer. I guess he’s no longer a shining star…
  • Also on the crime beat: Charges filed in Whitey Bulger whacking. “Fotios Geas, Paul J. DeCologero and Sean McKinnon have been charged with crimes related to the murder of Whitey Bulger.”
  • New York Times decides it can’t run an editorial by a black Republican senator unless it gets the permission of the white Democratic majority leader first.
  • More New York Times editorial judgment on display: “NYT Cuts Ties With Reporter Who Called For ‘Killing,’ ‘Burning’ Jews ‘Like What Hitler Did.’” The surprise is that they actually fired her. How do you think that conversation went? “Sure, lots of us have called for death to the Jews, but the ‘burning’ part just crosses the line…”
  • Boom:

  • “20-Year-Old Student Acquires 6% Of Bed Bath & Beyond, Makes $110 Million In 3 Weeks.”
  • Annnnnd….then he dumped it all.
  • “You’ll never catch me alive, coppers!”

  • Ill-Advised Semiconductor Subsidies Pass

    Thursday, July 28th, 2022

    Semiconductor subsidies passed the Senate and House and now will become law.

    The House on Thursday passed the bipartisan Chips and Science Act, which aims to increase domestic production of computer chips to allow the U.S. to become more competitive against China in the global technology market.

    The bill passed the House in a 243-187 vote one day after passing the Senate in a 64-33 vote. The legislation now heads to the desk of President Joe Biden.

    Biden called the passage of the bill on Thursday “exactly what we need to be doing to grow our economy right now.”

    “Today, the House passed a bill that will make cars cheaper, appliances cheaper, and computers cheaper,” Biden said. “It will lower the costs of every day goods. And, it will create high-paying manufacturing jobs across the country and strengthen U.S. leadership in the industries of the future at the same time.”

    Twenty-four Republicans voted to pass the measure, despite Republican leadership making a last minute push to discourage GOP lawmakers from supporting the bill. GOP leaders sought to keep the bill from passing after news broke on Wednesday that Senator Joe Manchin (D., W. Va.) had reached a deal with Democratic leaders on a nearly half-a-trillion dollar spending package targeting energy and climate, health care, and increased taxes on the wealthy.

    Snip.

    The measure includes $39 billion to “build, expand, or modernize domestic facilities and equipment” for semiconductors, $2 billion to specifically manufacture semiconductors and $11 billion for Department of Commerce research and development.

    “Research and development” is no doubt going to be a rich conduit of graft to Democratic Party cronies having nothing to do with semiconductors.

    For reference, $29 billion is probably just enough to build two state-of-the-art 300mm chip fabrication plants.

    As I’ve argued before, the reasoning behind the bill is specious and it won’t result in a single new chip being fabbed in the next two years.

    The most recent stats I can find show that the United States has some 47% of the semiconductor market. We (and Taiwan, and South Korea) are kicking China’s ass in semiconductors.

    The chips China make are generally either: A.) Cheap, or B.) intended for their internal market. No one sends cutting edge chips to be fabbed in China because they don’t have the tech to do it and everyone know they’ll steal your designs and crank out knock-offs on the sly whenever possible. China’s semiconductor industry is mostly smoke and mirrors all the way down.

    Semiconductor subsidies have all the hallmarks of a classic Washington boondoggle: The wrong action at the wrong time for the wrong problem.

    First, there are already signs that the automotive semiconductor crunch is easing, thanks not to the Biden Administration but to the actions of the free market.

    Second, the shortage wasn’t the result of a “chip shortage,” it was the result of “a lack of available foundry wafer starts.” Automakers cancelled their orders for display drivers when it looked like Flu Manchu lockdowns were going to depress the economy for a while, and were caught off-guard by the V-shaped recovery under Trump, and got sent to the back of the line to get their product fabbed after they changed their mind. Remember, just about all foundries are running flat-out 24/7/365, pausing only to switch to different chips for different customers. There’s no slack in the system, and those wafer starts are already spoken for (and possibly paid for) by other customers well in advance. Just as nine woman can’t give birth to a fully grown baby in one month, you can’t just “make chips quicker” in an existing fab.

    Third, remember that cutting edge semiconductor fabs are hideously expensive. Moore’s second law states that the cost of a new, cutting edge semiconductor plant doubles every four years. Samsung’s planned fab in Taylor, Texas is going to cost $17 billion.

    Fourth, nothing about these subsidies will address the real problem with American semiconductors, which is that the overwhelming majority of cutting edge chip designs have to flow through TSMC fabs in Taiwan. What will solve that problem is TSMC opening a state-of-the art fab in Arizona in 2024. No amount of U.S. taxpayer money will make that already-under-construction fab start producing chips any quicker.

    Could these subsidies boost American semiconductor manufacturing 2-3 years from now? Possibly. Knowing the cycling nature of the industry and the tendency of government subsidies to backfire, new/upgraded fab lines might come online just as the industry is experiencing a glut.

    But the real key to restoring America to the cutting edge of semiconductor manufacturing is the already-in-progress inshoring of cutting edge foreign owned fabs from Samsung and TSMC, and having American semiconductor manufacturers like Intel and GlobalFoundries master sub-10nm chip fabrication processes, something they have heretofore been unable to do. (Intel is closer, having been on the cutting edge until they lost their way, while GlobalFoundries stopped all development on their 7nm node because they couldn’t find a way to make the investment pay off.)

    Throwing buckets of budget-busting borrowed taxpayer money around isn’t going to make any of those things happen any faster.

    LinkSwarm for July 23, 2022

    Saturday, July 23rd, 2022

    Paying people not to work makes them worse off, Democrats sleepwalk toward disaster, another would-be assassin of a Republican congressman walks away without bail, more Democratic judicial officials who refuse to obey the law, and a disturbing number of pedophiles in our school systems. Welcome to a special Saturday LinkSwarm!

  • News flash: Universal basic Income makes recipients lives worse.

    The “experts” didn’t expect it to turn out this way. An experiment conducted by Harvard University and University of Exeter social scientists found no-strings-attached handouts harmed low-income recipients rather than help them.

    Funded by an anonymous nonprofit, the study centered on an experiment in which 2,073 low-income people were randomly selected to receive a single, unconditional cash transfer of either $500 or $2,000. Another 3,170 low-income study subjects received no money from the study.

    The experiment was conducted from July 2020 to May 2021. On average, the subjects were earning roughly $950 a month while receiving another $530 in food stamps and other government benefits. A little over half were unemployed and 80% had children.

    Over a 15-week period, participants were periodically surveyed about their financial, physical and mental health. Across a wide range of financial and non-financial attributes, researchers found no positive effects on those who received free money — but plenty of negative ones.

    For a few weeks, people who received the extra money spent more than the control group — $182 a week for the people who received $500, and $574 a week for the ones given $2,000.

    The additional spending didn’t bolster their financial health. The handout recipients reported the same rate of overdraft fees, late-payment charges and cash advances as did those who didn’t receive the extra money. And it was all downhill from there. The handout recipients reported:

    • Less earned income
    • Less job satisfaction
    • Lower work performance
    • More financial stress
    • Less liquidity
    • Worse sleep
    • Worse physical health
    • More anxiety
    • More loneliness

    The Wall Street Journal’s Allysia Finley writes:

    “It’s no surprise that people who received a large percentage of their monthly income for doing nothing were less motivated to work and less satisfied with their work.

    Earning a paycheck can give workers a sense of personal agency that encourages them to make better financial and health decisions. Receiving a handout may do the opposite.”

  • The Democratic Party’s embrace of social justice lunacy has them sleepwalking toward disaster:

    The editors of The Economist beg the Democratic Party’s leaders to “wake up” to the fact that they’re about to get demolished in the upcoming midterms. Politico reports that, “The gubernatorial race in Pennsylvania has begun to look more competitive than either party expected.” The Economist blames the loud voices of the hard-left fringe, and warns that Democrats must “moderate, or die.” But this is just about the least likely moment for centrist Democrats to launch a new fight against the Alexandria Ocasio-Cortez types, and Democrats won’t have that fight until a midterm thrashing forces them to — and even then, Democrats may well choose to learn the wrong, but more comforting lessons, from a sweeping defeat.

    The editors of The Economist, sensing an impending midterm blowout and the ensuing empowerment of a Trump-friendly GOP, beg the Democratic Party’s leaders to distance themselves from their fringe elements:

    Fringe and sometimes dotty ideas have crept into Democratic rhetoric, peaking in the feverish summer of 2020 with a movement to “defund the police”, abolish immigration enforcement, shun capitalism, relabel women as birthing people and inject “anti-racism” into the classroom.

    Snip.

    First, out of all the possible times for the leaders of the party and its centrist members to embrace a fight with their hard-left grassroots, four months before Election Day is perhaps the worst time. Right now, Democrats desperately need progressives — the Bernie Bros, the Squad fans, and your crazy Aunt Edna with the Ruth Bader Ginsburg prayer candles — to turn out in November; they’re disappointed enough with Joe Biden already. The future of Senators Raphael Warnock of Georgia, Catherine Cortez Masto of Nevada, Maggie Hassan of New Hampshire, and Mark Kelly of Arizona depends upon frustrated and impatient progressives in those states.

    Second, rebuking the fringe Left is going to be difficult, and few people embrace difficult change until they hit bottom. Nobody likes admitting that they got something wrong, and nobody in politics wants to admit that their approach didn’t work — until after they’ve paid a high price at the ballot box.

    The disappointing results of 2020 were clearly not enough. Shortly after the election, Representative Abigail Spanberger of Virginia seethed about her party’s left wing: “Tuesday was a failure, it was not a success. . . . If we don’t mean defund the police, we shouldn’t say that. . . . And we need to not ever use the word ‘socialist’ or ‘socialism’ ever again. Because while people think it doesn’t matter, it does matter, and we lost good members because of that. If we are classifying Tuesday as a success from a congressional standpoint, we will get f***ing torn apart in 2022.”

    Do the Democrats seem more centrist and results-focused now than they did in 2020?

    Democrats can’t rebuke their social justice warrior radicals because the shock-troops of that “fringe” has taken control of vast swathes of the party machinery. The SJW faction is willing to endure electoral disaster as along as it lets them sieze full control of the party machinery and thus all the spigots party patronage.

  • How bad is it? Ruy Teixeira, whose “emerging Democratic majority” thesis is is so central to Democratic administrations refusing to enforce border controls, is leaving the Center for American Progress because it’s gotten too radical.

    Ruy Teixeira, a prominent scholar at the left-leaning think tank Center for American Progress (CAP), is leaving his job for a conservative organization because of liberals’ obsession with race, gender and other identity issues, according to Politico.

    The obsession with identity politics at CAP made it difficult for him to do work involving class and economics, he told the outlet, so he’s leaving for the conservative think tank American Enterprise Institute. Left-leaning think tanks have given in to demands of junior staffers and made it difficult for scholars to discuss crime, immigration and other issues beyond a narrow set of default assumptions, according to Teixeira.

    The culture within left-leaning organizations “sends me running screaming from the left,” Teixeira told Politico. “It’s just cloud cuckoo land … the fact that nobody is willing to call bullshit, it just freaks me out.”

  • Attack a Republican congressman? Enjoy your Get-Out-Of-Jail-Free card. “A 43-year-old man [David G. Jakubonis] accused of attacking Representative Lee Zeldin (R., N.Y.) with a sharp object at a campaign stop in upstate New York on Thursday evening was charged with a felony and released from custody just hours after his arrest, police said…Jakubonis was charged with attempted assault in the second degree and was released on his own recognizance.”
  • The groomer plague is not your imagination. “At least 181 K-12 teachers, principals, and staff have been arrested for child sex crimes in the United States so far this year.”
  • “Self-Proclaimed Socialist Judge in Harris County Facing Removal by Judicial Conduct Commission. Judge Franklin Bynum allegedly ordered the sheriff not to collect DNA samples required by law and repeatedly dismissed domestic and family violence cases for no probable cause.”
  • Cost of living index for cities worldwide. Weirdly, Austin is still pretty affordable in relation to purchasing power compared to most of the world. Also weirdly, New York City is the index city…
  • “Man found dead in Georgia house used by black nationalist communist group ‘Black Hammer.'”
  • Things the media doesn’t want you to know: “10-Year-Old Rape Victim’s Mom Is in Domestic Relationship With Child’s Alleged Illegal Alien Rapist.”
    

  • Soros-backed Los Angeles District Attorney George Gascon has hired the highest paid attorney in the country to fight against being forced to obey the law.

    Gascón’s prosecutors sued him so they could “charge repeat offenders to the fullest extent of the law.” The DA wants to appeal in front of the California Supreme Court:

    In June, the Second Appellate District Court upheld portions of a lower court’s injunction that said Gascón cannot refuse to charge three-strike cases, which can dramatically increase prison sentences for some of the most serious repeat offenders.

    Gascón is hoping to have the court’s order overturned, arguing that it is “draconian,” creates “a dangerous precedent” and amounts to “taking the charging decision out of a prosecutor’s hands.”

    “The district attorney overstates his authority,” the Second Appellate District ruling reads. “He is an elected official who must comply with the law, not a sovereign with absolute, unreviewable discretion.”

    Don’t the peasants know that laws are for the little people?

  • Good. “San Francisco’s New DA Goes On Firing Spree After Voters Recall Soros-Backed Predecessor…”The new district attorney in San Francisco fired at least 15 employees from the prosecutor’s office after her left-wing predecessor Chesa Boudin was recalled last month.
  • “Charlene Carter, a flight attendant who had worked at Southwest Airlines for 20 years but was fired in 2017 because she had publicly opposed the use of her union dues to fund pro-abortion protests, has now won a $5.1 million lawsuit against both Southwest and her union.” Good. Coerced speech violates the First Amendment. (Hat tip: Sarah Hoyt at Instapundit.)
  • Kill someone in self-defense? GoFundMe will close your account. Get Darwinated after shooting at police? GoFundMe is A-OK with your family raising money off your dimwitted corpse.
  • “Starbucks CEO Howard Schultz blames Dem-run cities for store closures.” As well he should. (Hat tip: Sarah Hoyt at Instapundit.)
  • Mario Draghi resigns as Italy’s prime minister after losing a no-confidence vote, which will trigger a new election.
  • How do we know Ray Epps is a fed? Because the New York Times is going to great lengths to defend him.
  • North Carolina town hires new woke city manager. Result: Town’s entire police force quits. Bonus: She was fired from her last job. (Hat tip: Stephen Green at Instapundit.)
  • Beto O’Rourke gets a $1 million donation from George Soros. Well, at least that’s $1 million that won’t go toward burning down small businesses and defunding the police. Also, remember how Democrats are always saying they want to get money out of politics? They never mean it.
  • “I’m a big fan of American airlines. They’re screwing us around a whole lot on this trip.” Plus: Monster Trucks!
  • The small part of Yellowstone national park where you can theoretically get away with murder.
  • An amazing 1949 Cadillac Fastback restomod.
  • Whoa!
  • Boing!

  • LinkSwarm for July 15, 2022

    Friday, July 15th, 2022

    The Biden Recession continues to wreck the pocketbooks of Americans, EU economies are sucking even worse than ours, more Bidens Behaving Badly, and unlimited abortion is not nearly as popular among the American public as it is among New York Times staffers.

  • Another month, another 40 year inflation high.
  • More Biden economic magic: “New Job Openings Drop In 47 States, Nationally Down 17%.”
  • The Euro has now reached parity with the dollar for the first time in 20 years.
  • Cold comfort from Peter Zeihan: The economy and food security is going to get much worse, but Europe is going to suffer much worse than America.
  • Support for unlimited abortion is deeply unpopular:

    (Hat tip: Stephen Green at Instapundit.)

  • Widespread criticism of Jill Biden’s failed hispander proves that Democrats are no longer interested in excusing Joe Biden’s many manifest failures.

    Democrats are just tired of Joe Biden and of having to explain away his poor performance. Since Biden was elected, the only thing that has gone right is that the Covid-19 pandemic effectively ended and the unemployment rate has remained low. Inflation is out of control, gas prices are at record highs, grocery bills are skyrocketing, the stock market is getting battered and people’s 401(k)s are shrinking, crime remains high, mass shootings keep bedeviling America’s public spaces, Russia’s invading Ukraine, there’s a global food and commodity crisis, and the Taliban is running Afghanistan and oppressing women again. Democrats are apoplectic that the Supreme Court struck down Roe v. Wade, a New York State gun law, and the EPA’s right to regulate carbon emissions without explicit approval from Congress. Parents are up in arms, the teachers’ unions look like callous fools who kept schools closed and harmed a generation of schoolchildren, and “abolish the police” looks like a suicidal public policy. Republicans notice that waves of illegal immigrants headed north shortly after Biden’s inauguration and haven’t stopped coming since.

    You didn’t even mention the Social Justice insanity and all the transexual madness.

    That New York Times poll found that 64 percent of Democrats want a different presidential nominee in 2024. Nobody’s willing to cover for this guy anymore; no one is inclined to avert their eyes when Biden or his wife blurts out something tone-deaf now.

    There are some of us who would argue that Joe Biden has always been an insecure, abrasive, presumptuous, disingenuous, demagogic, insufferable blowhard who was largely protected by a cozy, all-too-friendly relationship with a press inclined to airbrush his glaring character faults, presenting him as a wacky neighbor or a kindly, ice-cream loving grandpa.

    What we see now is what happens when much of the national media, the Democratic Party establishment, and liberal interest groups stop playing along with the narrative that Biden is a wiser, sharper, kinder, more energetic and sensitive man than he is. And the truth isn’t pretty.

  • Speaking of unwanted Bidens: “Hunter Biden could face prostitution charges for transporting hookers across state lines and disguising checks to them as payments for ‘medical services.'” I’ll believe Hunter Biden prosecution when I see it. Also, I’ve been treating the 4Chan “Hunter Biden iPhone leak” with a certain amount of skepticism. Certainly the Hunter laptop revelations were real, and Hunter is a big enough scumbag to do the the things alleged iPhone leak materials depict. But I try to be cautious about anything that fits too neatly into my preconceptions. (Hat tip: The Other McCain.)
  • “Left-Wing Nonprofit Scores $171.7 Million-$1 Billion Government Contract To Help Illegal Immigrants Avoid Authorities.”

    A liberal non-profit group has been given a taxpayer-funded government contract worth at least $171.7 million — which could potentially reach just under $1 billion — for assisting illegal immigrant minors in avoiding capture or incarceration by U.S. Border Patrol and state officials.

    The Department of the Interior was the awarding agency and “The Vera Institute of Justice,” based out of New York — which supports the “defund the police” movement and has lax views on immigration enforcement — was the beneficiary.

    (Hat tip: Director Blue.)

  • Is paper gold being manipulated?
  • China bubble update: Alibaba just just laid off one-third of its strategic investment team.
  • A look at the sniping war in Ukraine. (Hat tip: Dwight.)
  • Houston demonstrates the case against zoning.

    Thanks in part to a lack of zoning, Houston builds housing at nearly three times the per capita rate of cities like New York City and San Jose. It isn’t all just sprawl either: In 2019, Houston built roughly the same number of apartments as Los Angeles, despite the latter being nearly twice as large. This ongoing supernova of housing construction has helped to keep Houston one of the most affordable big cities in the U.S., offering new arrivals modest rents and accessible home prices even amid seemingly endless demand.

    Houston is by no means a model for planning. Like every other Sun Belt city, it struggles with segregation and sprawl. Yet its continued success as one of America’s most affordable and prosperous cities reveals the workability—indeed, the desirability—of non-zoning. Houston is a profoundly weird place, resistant to seductive oversimplifications. But it provides insight into what comes after the arbitrary lines that have misshapen our cities—and how we might get there.

    So why didn’t Houston adopt zoning like every other U.S. city? The answer comes down partly to process. Unique among major cities, Houston subjected zoning to a citywide vote. While most city councils had, historically, quietly adopted zoning after a few perfunctory public hearings, the Bayou City invited voters to decide on zoning in 1946, 1962, and 1993. Voters rejected it each time—a reality that calls into question the often-postulated popularity of zoning.

    Zoning critics rightly dispensed with the comforting myths surrounding zoning—that its purpose was to merely rationalize land use—and zeroed in on its tendency to restrict new housing construction, limit access to opportunity, institutionalize segregation, and force growth outward. Far from being duped, Houston’s working-class residents exhibited a subtler understanding of the purposes of zoning than many contemporary planners and rejected it accordingly.

    But the answer to why Houston remains unzoned also comes down to politics. Zoning proponents didn’t merely lose the referendums—they were also tactfully bought off by being allowed to have something resembling zoning in their immediate vicinity. Indeed, the dark little secret of non-zoning in Houston is that it depends on a system of land-use regulations known as deed restrictions, which empower certain communities—principally middle- and upper-class homeowners—to effectively “opt out” of non-zoning, writing their own land-use rules for their own neighborhoods. In exchange, Houston is able to protect the vast majority of the city from the types of arbitrary-use distinctions, density limits, and raucous public hearings that cause so much harm in every other U.S. city. That is to say, in exchange for respecting pockets of private land-use regulation, Houston is able to grow, adapt, and evolve like no other city.

    Deed restrictions are private, voluntary agreements among property owners—typically the homeowners of a particular subdivision or neighborhood—regulating how they can and cannot use their land. These rules are literally tied to the deed, meaning that a property owner must agree to them as a condition of the sale. Since the failed 1962 zoning referendum, the city has enforced these agreements on behalf of the relevant parties, refusing to issue permits that run afoul of their provisions and bringing legal action against violators.

    Is this system of publicly enforced deed restrictions “basically zoning,” as some might argue? On the one hand, deed restrictions—like zoning—demarcate specified areas subject to a distinct set of stricter land-use rules. Both zoning and deed restrictions in Houston are enforced by the government, principally with the aim of propping up home values and maintaining a certain quality of life. Many deed restrictions even have rules banning apartments and enforcing a strict two-and-a-half-story height limit.

    Yet, the similarities end there, and Houston’s system of deed restrictions is a significant improvement over zoning. For starters, deed restrictions only cover an estimated quarter of the city, largely in areas with low-rise, detached, single-family housing. Industrial areas, commercial corridors, mixed-use and multifamily neighborhoods, urban vacant lots, and yet-to-be-developed greenfields are virtually never subject to their provisions. This means that roughly three-quarters of Houston—including its more dynamic sections—are largely free to grow without anything even resembling zoning holding them back.

    Another key difference is that deed restrictions must be voluntarily opted in to. This serves to discipline deed restrictions in a way that is rarely true of zoning: If the rules are stricter than what prospective homebuyers might prefer, or not strict enough, or simply focus on the wrong concerns, this may translate into lower home values. This in turn nudges homeowners to think through the optimal form of land-use regulation to a degree that rarely happens with zoning.

  • Speaking of Houston, a new poll shows Harris County judge Lina Hidalgo in a dead heat with Republican challenger Alexandra del Moral Mealer. November will be a good time to determine if the Hispanic realignment in Texas extends to America’s fourth largest city.
  • After deciding to let drug-abusing transients use their restrooms, Starbucks is now closing 16 stores because of rising violence, and the fact that transients are shooting up in their restrooms. Golly, who could have possibly seen that coming?
  • “White progressives do not have the moral authority to excommunicate a black man from his race because they disagree with him.”
  • Best gun oil? Project Farm does some testing, and Clenzoil and BreakFreeCLP come out on top.
  • Beto O’Rourke Lags in the Polls.” Try to contain your shock. And I bet the polls overstate his popularity…
  • Score another one for the good guys.

    Another Texas school superintendent has stepped down amid criticism from parents concerned about liberal indoctrination in their children’s classrooms.

    At a special meeting Monday afternoon, Clear Creek Independent School District’s board of trustees accepted the retirement of Superintendent Eric Williams, effective in January 2023.

    Conservative parents in the Houston-area district had complained that Williams, who started in early 2021, was subjecting their students to liberal ideologies he brought from his former job as superintendent of

  • Justice for Jim Thorpe.
  • Somebody didn’t listen to Jack Handy. (Hat Tip: Ann Althouse.)
  • “San Francisco DA Announces Innovative New Plan To Arrest People For Breaking The Law.”
  • Been super hot in Austin this week, but there are ways to keep cool:

  • Two Doses of Neil Oliver

    Wednesday, July 13th, 2022

    First up: Scottish commentator Neil Oliver wonders about all the questions we’re not allowed to ask about Flu Manchu.

    Daily Mail online carried a headline on the 8th of June: Healthy young people are dying suddenly and unexpectedly from a mysterious syndrome – as doctors seek answers through a new national register.

    This is SADS – an acronym that stands for Sudden Adult Death Syndrome – and according to the Royal Australian College of GPs, it occurs most commonly in people under 40. This is properly scary; I don’t mind telling you. Healthy young people are going to their beds of an evening and not waking up ever again, or otherwise going about their everyday business and dropping dead, for no identifiable medical reason.

    The best anyone in the health professions can apparently do is describe it as mysterious, baffling even, that there are people under 40 dropping in their traces for no known cause. At the same time, around the world, there have been reports of many hundreds of sports men and women dying suddenly and unexpectedly in the past year – super fit individuals uniquely focused on their own health – keeling over dead, often on the field of play.

    Here at home we have had updated information campaigns about how important it is to be aware of the incidence of heart attacks and strokes. It has been deemed appropriate to remind us as well that heart attacks are not unknown in children. It’s almost as if we’re not to be unduly alarmed by the sight of passers-by dropping to their knees and clutching at their chests. Elsewhere there is a poster campaign about a rise in the number of cases of shingles. The small print on the posters mentions shingles may strike people with lowered immune systems. Fancy that.

    Deaths have been attributed by coroners to the Covid vaccines. The numbers are disputed, but people have died on account of the jabs. That much at least is undeniable. Around the world there are millions of cases of alleged adverse reactions to the jabs – lives severely compromised in some cases. I won’t get into the numbers, because those are always disputed too – but the facts remain. People are dying.

    The elephant in the room here is the Covid-19 vaccines – and again I make no apology at all about banging on about this topic week after week. The push to move on, to leave all talk of Covid and pandemic behind us, is palpable and, I would say, downright sinister. I am nowhere near ready to move on – not while there is still so much we do not know, so much we are not allowed to say, think and ask.

    We are told all about Covid 19 – and all manner of ways in which it might affect health long after a person has recovered from the initial infection. But as well as the pandemic, the other momentous arrival among us – indeed in just the past year and a half – is the biggest mass vaccination campaign in the history of the world – vaccination with products that had emergency approval, but in my opinion are experimental and for which no long-term data is available – on account of their being brand new and just out of the box.

    Billions of people around the world have submitted to the procedure. In a coercive and bullying atmosphere created by politicians and the media, that was mandatory in feel, if not in fact, unknown and unknowable numbers of people did so simply to keep their jobs, to get on a plane and go on holiday or to a gig – and yet in the midst of one report after another of otherwise unexplained sudden deaths in the past 18 months or so, the only emergent variable, the only new thing in the world that we are not allowed to discuss, absolutely not allowed to discuss far less point accusatory fingers at, is the mass vaccination programme.

    Again, I ask the question I posed at the top of this piece – are we stupid? Or are we just being treated as if we’re stupid? Which is it?

    Next: Oliver notes how mass protests and even open revolt against the green globalist/Build Back Better agenda are being downplayed or ignored by the media:

    Sri Lanka was a product of that government following, you know, the the madness of [World Economic Forum] inspired policies: Net Zero, the stripping of fertilizers, and all the rest of it…wholesale strife, collapsing crops and all the rest of it. You would think in a sane world the politicians in each of the countries would respond to the people, but I suspect they won’t. We saw something similar in Canada with the trucker’s freedom convoys, but look what happened there. Obviously Justin Trudeau was was told to get a grip of that situation. He clamped down on it violently, arrested bank accounts and took away the funding for that movement.

    Bit on Sri Lanka skipped.

    I think what you’re looking at in The Netherlands, for example, is the deliberate dismantling of the land owning class. 85% percent of the of the land in The Netherlands is held by farmers, and has been for generations, and that’s an inconvenient situation for globalist leftist politicians who’ve got other ideas for the land, which is specifically to build houses to cope with the with the levels of immigration that are going on. They’ve empowered themselves the politicians to help themselves to 30 percent of the Dutch farmer’s land, and surprise, surprise! Just as I suspect you would or I would, if the government came into our homes and said they were taking 30% everything we had we owned and had worked for, the farmers have said no…It’s a blatant land grab.

    It gets harder and harder to ignore the intent by by leftist globalist governments to return us to some form of feudalism. All these people like us owning property, owning homes, living lives independent of the state. You know what the intention is there, to take people’s independence away. Take away their property, take away the land, and if you control the farmland, you control the food. And if you control the food, you control the people. So you can plainly see what the agenda is.

    One need not agree with every one of Oliver’s conclusions to agree that the pattern he deduces, of elites acting against the best interests of the countries they govern and the people they ostensibly serve, seems very real.

    (Hat tip: Director Blue.)

    Texas Woman Pleads Guilty To 26 Counts Of That Voter Fraud Democrats Swear Doesn’t Exist

    Sunday, June 26th, 2022

    Don’t look now, but the Texas Attorney General’s office just announced a woman pleading guilty to 26 counts of that voter fraud Democrats swear doesn’t exist.

    Texas Attorney General Ken Paxton announced his office’s latest election integrity prosecution in Victoria County. Monica Mendez of Port Lavaca pleaded guilty to 26 felony counts of voter fraud, including three counts of illegal voting, eight counts of election fraud, seven counts of assisting a voter to submit a ballot by mail, and eight counts of unlawful possession of a mail ballot. Mendez ran a vote-harvesting operation on behalf of a subsidized housing corporation in order to influence the outcome of a utility board election.

    A utility board election. Stakes that low and here’s demonstrable proof that someone thought it was worth committing voter fraud. Imagine how much more temptation there must be to commit voting fraud in a presidential election?

    Texas Scorecard has more details.

    A Victoria County grand jury indicted Mendez on 31 felony election fraud counts:

  • 7 counts of illegal voting (second-degree felony—2 to 20 years in prison, fine up to $10,000)
  • 8 counts of unlawfully assisting a voter voting by mail (third-degree felony—2 to 10 years in prison, fine up to $10,000)
  • 8 counts of unlawful possession of a ballot (state jail felony—180 days to 2 years in jail, fine up to $10,000)
  • 8 counts of election fraud (state jail felony)
  • The charges relate to eight mail-in ballots in a May 2018 water district board election in Bloomington, a town of around 2,000 residents near Victoria.

    The Texas Secretary of State referred the case to the AG’s office for criminal investigation after receiving reports from residents of possible illegal voting activities ahead of the election, including about 275 new voters who registered using the same mailing address—a P.O. box associated with a local nonprofit housing provider ALMS.

    Tenants said ALMS threatened to raise their rent if they didn’t vote for their landlord’s preferred water board candidates. ALMS wanted to oust the incumbents because they said the water district overcharged for services at their rental properties.

    In 2016, Texas Rangers investigated similar allegations that ALMS coerced tenants to vote for certain candidates.

    Authorities haven’t said which candidate or candidates may have benefited from Mendez’ alleged ballot harvesting.

    A total of 563 ballots were cast in Bloomington’s 2018 water district election. Each voter chose up to three of the six candidates, and the top three were elected.

    Just 12 votes separated the third- and fourth-place finishers.

    I’ve seen various reports that Mendez is a Democrat (which the “subsidized housing corporation” part would suggest), but I am unable to find definitive proof of that. If you have any, feel free to share it in the comments below.

    LinkSwarm for June 17, 2022

    Friday, June 17th, 2022

    The Fed goes Volcker, more Welcome Back Carter cosplay, Big Yellow moves to Texas, and Florida Man makes a run for the ocean.
    
    FYI, Blue Host has been acting weird today, giving errors when you tried to save, even though everything appears to be there upon reloading. (Shrugs.)
    
    

  • Fed hike rates 75 basis points. The attempt to Volckerize inflation during the Biden Recession has begun.
  • Speaking of St. Volcker, there were a lot of other factors that helped kill inflation in the early 1980s:
    • Oil was one of the primary causes of the 1970s inflation and everyone remembers the oil crisis. During the decade, oil ran all the way from $2 to $39. However, the flipside to this story is that with a lag, high oil prices will eventually incentivize production. The issue was that the US specifically disincentivized US producers and importers. Ronald Reagan signed an Executive Order in January of 1981 to eliminate oil price controls and then removed Jimmy Carter’s idiotic Windfall Profits Tax a few years later. As expected, global production expanded rapidly and with the removal of price controls, that production flooded into the US. By the middle of the decade, despite repeated production cuts by OPEC, there was a global glut of oil and by 1985, oil had collapsed all the way to $7. It wasn’t interest rates that made oil decline, it was government policy on the deregulation side, along with rapid production increases from non-OPEC countries.
    • President Reagan’s Economic Recovery Tax Act was signed into law in August of 1981, designed to reduce tax rates and incentivize investment by rewarding risk-taking by businesses. In particular, the Accelerated Cost Recovery System served to accelerate depreciation, reducing taxes for those that invested in productive capacity. Once again, government policy, not interest rates led to an increase in investment and ultimately supply, helping to tame inflation.
    • It wasn’t just Reagan working on de-regulation; The Staggers Act of October 1980, deregulated the railroads, The Motor Carrier Act of July 1980, deregulated the trucking industry, and the Airline Deregulation Act of October 1978 effectively deregulated transport industries. The net effect was dramatic price competition, better ability to invest and innovate, and the ability to eliminate unprofitable business that was funded by profitable business. Almost immediately after passage, pricing for transport services collapsed and the ease of transporting goods expanded.
    • Organized labor was also dealt a near-fatal blow when Reagan fired the air traffic controllers in August of 1981. This may have reduced the wages for a generation of middle-class workers, but it sure wasn’t inflationary. It also accelerated the decline of unions which had already peaked out as a percentage of workers. More importantly, it reduced the militancy of unions and took the teeth out of their ability to disrupt businesses, leading to better efficiency and lower costs for consumers.
    • At the same time, when it comes to macroeconomics, demographics equals destiny. In this case, Volcker simply got lucky. Think of the Baby Boom generation, the last of whom was born in 1964. By 1982, these last Boomers hit 18 and started joining the workforce. The eldest Baby Boomers, born in 1946, were already 36 by then. Look at the massive increase in workers starting in the late 1970s and into the 1980s, which tamped down wages and tamed inflation—especially as female participation in the workforce expanded dramatically. This added labor slowed a key component of the inflation.

    The Biden Administration looks capable of pursuing none of those policies, and the Baby Boomers are starting to retire…

  • More Biden Magic: “The Dow has now had 11 down weeks out of the last 12. This has never happened before… (in Nov 1929, The Dow fell for 10 of 11 weeks)…”
  • How did we get here? Well, in addition to those SUPERgeniuses in the Biden Administration, decades of deficit spending, and loose Fed money printing, there’s the Flu Manchu lockdowns.

    For weird reasons, some people, many people, imagined that governments could just shut down an economy and turn it back on without consequence. And yet here we are.

    Historians of the future, if there are any intelligent ones among them, will surely be aghast at our astounding ignorance. Congress enacted decades of spending in just two years and figured it would be fine. The printing presses at the Fed ran at full tilt. No one cared to do anything about the trade snarls or supply-chain breakages. And here we are.

    Our elites had two years to fix this unfolding disaster. They did nothing. Now we face terrible, grim, grueling, exploitative inflation, at the same time we are plunging into recession again, and people sit around wondering what the heck happened.

    I will tell you what happened: the ruling class destroyed the world we knew. It happened right before our eyes. And here we are.

    Last week, the stock market reeled on the news that the European Central Bank will attempt to do something about the inflation wrecking markets. So of course the financial markets panicked like an addict who can’t find his next hit of heroin. This week already began with more of the same, for fear that the Fed will be forced to rein in its easy-money policy event further. Maybe, maybe not; but recession appears impending regardless.

    The bad news is everywhere.

  • More Welcome Back Carter 70s throwbacks: labor unions want to wage war strikes against the U.S. food chain.
  • A closer look suggests that Democrats are actually doing worse than their horrible polls suggest.

    The polling error for the 2020 election was roughly 4% nationwide, the largest in the last 40 years.

    Fast-forward to today. Inflation is 8+ percent, the price of food and gasoline is way up, crime is up, there is a nationwide shortage of baby formula, and don’t get me started on the border crisis. Yet Joe Biden’s job approval is close to 40% positive. That means almost four out of every ten Americans think Joe is doing a good job if you believe the RealClearPolitics average. And I don’t.

    Snip.

    If the polls are overestimating approval numbers for Biden and other Democrats, how bad is it? The political climate today is different since the 2020 election, but the Democrat poll bias seems intact, which was 4% nationwide. Since nonresponse bias, 4%, and registered voter bias, 2.6%, should be mutually exclusive, we can add them together. This gives us a total Democrat bias of roughly 6.5%

    What does this mean? Until pollsters switch to sampling likely voters right before the election, you can subtract a solid 6 percent from Joe Biden’s approval numbers. And if nothing changes before the election, any Democrat who leads by 3 percent or less is likely to lose.

  • Another Russian ship sunk.
  • “Paxton Wins Lawsuit Against Lax Biden Immigration Policy.”

    Texas Attorney General Ken Paxton is enjoying a victory against a Biden administration policy that has allowed illegal aliens to cross the southern border without consequence.

    In 2021, President Joe Biden’s Department of Homeland Security issued a rule giving immigration law enforcement officials the power to decide whether or not to detain illegal aliens who attempt to cross the border (in contradiction to federal law, which says they must all be detained).

    This policy caught the attention of Texas Attorney General Paxton and Louisiana Attorney General Jeff Landry, who sued to stop the rule change, arguing that Biden was violating federal law when refusing to take custody of criminal migrants.

    Paxton bashed President Biden, arguing that the policy was contrary to federal law and was instituted without following the proper procedure. Over a year since the original lawsuit was filed, a federal judge issued a ruling against the Biden administration on Friday.

    Federal District Judge Drew Tipton said in his decision that the rule was “an implausible construction of federal law that flies in the face of the limitations imposed by Congress.” Tipton added, “Whatever the outer limits of the authority, the executive branch does not have the authority to change the law.”

    After a legal fight lasting almost a year, Texas judges ruled a final judgment banning Biden’s detention-discretion rule.

  • The Sheriff’s Office of Isabella County, Michigan has to stop responding to some 911 calls due to rising gasoline prices.
  • Sixty years ago came the birth of the New Left via Tom Hayden, Students for a Democratic Society and the Port Huron Statement. (Hat tip: Stephen Green at Instapundit.
  • Most of what you know about Watergate is probably wrong. (Hat tip: Dwight.)
  • Leaked internal emails showing Twitter employees debate banning Libs Of Tik-Tok for crimes against social justice.
  • Round Rock ISD Trustee Sues Superintendent Over Alleged Illegal Investigation. The saga continues in Round Rock ISD as trustee Mary Bone files against scandal-plagued Superintendent Hafedh Azaiez.”
  • Caterpillar is moving their headquarters to Texas.

    (Hat tip: Stephen Green at Instapundit.)

  • Elon Musk: “Democrats ‘Would Rather Tesla Was Dead Than Be Alive And Non-Unionized.'” Of course they would. If they can’t rake graft off you, or harvest votes from your ghetto, you’re worse than useless to them.
  • Speaking of Musk: Several snowflakes working at SpaceX circulated a letter calling Musk “an embarrassment” and demanding the company be more “inclusive.” Result: He fired their ass. Good.
  • McDonald’s gives up on healthy food.
  • Florida Man Crime Blotter: Accused Medicaire fraudster Ernesto Graveran captured trying to escape to Cuba on a jet ski. (Hat tip: Dwight.)
  • How bad is the Biden economy? There’s now a Sriracha shortage.
  • San Antonio symphony orchestra shuts down and files for Chapter 7 bankruptcy. “The last bargaining session between the Symphony Society and the Musicians’ Union took place on March 8, 2022 after which the Union declined to return to the bargaining table, despite efforts of federal mediators and the Symphony. The Musicians’ Union has made it clear there is no prospect of the resumption of negotiations, absent the Board agreeing to a budget that is millions of dollars in excess of what the Symphony can afford.” (Hat tip: Dwight.)
  • “School District Announces Summer Enrichment Program For Kids Who Need Extra Grooming.”
  • Swim like no one’s watching.

  • China’s High Speed Rail Network Is A Trillion Dollar Debt Sinkhole

    Monday, June 13th, 2022

    Lefty sorts are always whining that other countries have high speed rail networks and we don’t. Many point to China’s extensive network of high speed rail as what we should be doing.

    Tiny problem: China’s high speed rail network is a giant, unprofitable sinkhole of $1.8 TRILLION worth of debt.

    Some take-aways:

  • The average operating loss for the system is $24 million per day.
  • The official amount for China National Railway debt for high speed rail is $900 billion, but since roughly half of the debt comes from local governments, the total is probably closer to $1.8 trillion.
  • For comparison sake, $1.8 trillion is about South Korea’s entire yearly GDP.
  • “Shanghai, the richest city in China, has a total GDP of $600 billion in 2020, which means that even the whole year of Shanghai’s GDP won’t be able to cover the debt of China National Railway.”
  • It’s extensive: 37,900km, nearly double the length from 2015.
  • Return on high speed rail investment is only about 2%, and the bulk of bond payments for loans are coming due over the next few years. “Cash flow from railway transportation revenue isn’t enough to cover the operating costs, let alone the ability to pay the debt and interest.”
  • Local government debt levels are around 100%.
  • “More than 85% of the funds raised through urban investment bonds are earmarked for repaying old debts with new ones.”
  • Even the most profitable high speed rail stretch, Beijing to Shanghai, only earns a return on investment of 5%.
  • Japan’s successful high speed rail network serves three metropolitan areas (Tokyo, Nagoya and Osaka) that have 55% of that nation’s population.
  • “A professor at the School of Economics and Management of Beijing Jiaotong University concluded that the operating costs are only just covered when the transport density of a high-speed rail line reaches 36 million passenger kilometers per kilometer. In China the average transport density is only about 17 million passenger kilometers per kilometer.”
  • High speed rail can’t transport heavy freight.
  • “The Lanzhou Uramuchi HSR in western China can run more than 160 trains per day. In reality, this route only runs four trains per day.”
  • High speed rail occupancy rate is only 30%, and is still too expensive for most Chinese to use.
  • High speed rail construction has squeezed out much-needed construction of regular rail. “China’s rail freight capacity can’t meet market demand. China’s market share of road freight turnover has risen rapidly to 49% market share in 2016.” China rail has jacked up freight costs to make up for losses on high speed rail.
  • China’s freight trucks get overloaded all the time.
  • China’s containerized shipping accounts for 40% of global trade, but “the proportion of China’s sea rail intermodal transport volume in 2017 was only about 2.5 percent.” 84% of port containers go out by road.
  • So why all the money poured into high speed rail? Opportunities for corruption.

    Officials see the high-speed rail project in which China is involved as a lucrative opportunity. China’s former minister of railways, known as the father of high-speed rail, was sentenced to death for corruption. Emerging industries such as high-speed rail, which offer both substantial commercial value and political achievements for local officials, have enormous room for corruption. In a systemically corrupt environment white elephant projects, that is a large project that falls significantly short of its goals, and the costs of upkeep outweigh its usefulness, are favored by many officials and businessmen looking to make a fortune. The vast majority of high-speed railways around the world can’t make ends meet on passenger revenues alone to cover their construction and operating costs. Most operate at a loss.

    In light of all that, why do American leftists keep complaining about America’s lack of high speed rail? Simple: It’s the corruption, stupid. High speed rail construction offers boundless opportunities for graft and corruption, and refusing to build any keeps them from getting their snouts into another giant trough of taxpayer money…

    (I didn’t expect this past week to become a string of “China’s economy is smoke and mirrors all the way down” posts, but I keep running into more examples.)

  • Chinese Corporate Scam + Green Subsidy Scam = Mountains of Abandoned New Cars

    Sunday, June 12th, 2022

    Here’s another entry for the “China’s economy is smoke and mirrors all the way down” file. Remember the previous story on the mountains of unused bikes for failed Chinese bike-sharing startups? Well, evidently the exact same thing happened with “green” cars:

    The mechanics of the scam:

    1. First they put together a down payment, order a batch of vehicles, and license them at a vehicle administration office.
    2. Then they contact government officials, present the vehicles in their hands and apply for permission on the grounds that they are operating an online car sharing business.
    3. The third step is to get the government’s permission, then go to the bank to get a loan.
    4. The fourth step is to find a financer and present the vehicles and the government papers to secure some venture capital from the financer.
    5. Last mortgage the vehicles to some smaller financial institutions to squeeze out their final value.

    After all these steps are completed, the scammers disappear. The bank, the financer and the small financial institution are left with triangular disputes while the vehicles rot somewhere in the wilderness.

    More takeaways:

  • China offers subsidies for new “green” cars.
  • Lots of these subsidized cars are bought by ride-sharing startups…
  • …that just happen to be subsidiaries of the the Chinese car companies manufacturing the cars being subsidized. (Presumably these are different companies than the pure scammers, but who the hell knows?)
  • Despite not being used, many have new license plates and up-to-date inspections.
  • Though there are minimum mileage requirements to get the subsidies, the businesses (in best Chinese fashion) just falsify the data.
  • “Especially the electric cars produced in previous years, the battery has a short range and the performance declines quickly. It’s worthless. At present it costs more to replace a new battery than the value of the old car.”
  • Most insane of all: China’s communist government required scrapping vehicles after 10 years or 100,000 kilometers. How’s that for “green”?
  • They later revised this to 15 years with annual inspections, then revised it again to a maximum of 600,000 kilometers.
  • And, of course, you can bribe inspectors to pass the inspection.
  • Green subsidy scams and failed startup detritus is hardly unknown in the U.S. (witness all those electric scooter sharing startups that are just now starting to go bankrupt), but China’s corner-cutting, get-rich-quick mentality combined with green government subsidies, interlocking corporate ownership, the usual Chinese scam artists and loose, bribe-able enforcement at various levels of Chinese government all combined for an especially appalling mountain of waste.