Why water heaters, dryers and freezers aren’t eligible I couldn’t tell you, but if you needed to get any covered appliances, this weekend is a good time.
There is no such evidence in the unmasking list that acting national intelligence director Richard Grenell provided to Senators Chuck Grassley (R., Iowa) and Ron Johnson (R., Wis.). I suspect that’s because General Flynn’s identity was not “masked” in the first place. Instead, his December 29 call with Kislyak was likely intercepted under an intelligence program not subject to the masking rules, probably by the CIA or a friendly foreign spy service acting in a nod-and-wink arrangement with our intelligence community.
“Unmasking” is a term of art for revealing in classified reports the names of Americans who have been “incidentally” monitored by our intelligence agencies. Presumptively, the names of Americans should be concealed in these reports, which reflect the surveillance of foreign targets, primarily under the Foreign Intelligence Surveillance Act. Broadly speaking, FISA governs two kinds of intelligence collection.
The first is “traditional” FISA — the targeted monitoring of a suspected clandestine operative of a foreign power. If the FBI shows the Foreign Intelligence Surveillance Court (FISC) probable cause that a person inside the United States is acting as a foreign power’s agent, it may obtain a warrant to surveil that person. If the foreign power’s suspected agent communicates with Americans, the latter are incidentally intercepted even though they are not the targets of the surveillance.
The second kind of FISA collection occurs under Section 702 of the statute. It brings under FISC jurisdiction various intelligence-collection programs that target categories of non-Americans outside the United States. These foreigners also communicate with Americans, so the latter are incidentally intercepted.
Under federal law, both kinds of FISA collection are subject to so-called minimization procedures. These aim to safeguard the privacy of Americans who have been incidentally monitored. When raw intelligence is refined into intelligence reports (including transcripts of recorded conversations) that are disseminated to U.S. officials, the identities of these Americans do not appear. Rather, a designation such as “U.S. Person” is substituted — the “mask,” as it were.
If, upon reviewing intel reports, an official with national-security or foreign-relations responsibilities believes that the reporting is critical, and that the identity of the U.S. person must be known in order for our government to reap the full benefit of the intelligence, then that official may request unmasking. Decisions on such requests are made by specialists assigned to the agency that reported the intelligence in question — usually the FBI or the NSA for intelligence collected, respectively, inside or outside the United States. Our intelligence agencies, led by the Office of the Director of National Intelligence (ODNI), keep records of these requests. This underscores that unmasking — because of its privacy implications, because foreign intelligence must never be a pretext for government spying on Americans — is a big deal that should be done only rarely and carefully.
With that as background, let’s get back to Flynn.
For three years, we’ve been led to believe that Flynn’s December 29 conversation with Kislyak was intercepted because the latter was “routinely” monitored. (Kislyak was replaced as ambassador in 2017.) That is, Kislyak was an overt agent of Russia, stationed at its embassy in Washington, so the FBI kept tabs on him. Indeed, the “routine”-surveillance story line was repeated by the New York Times just this week.
The implication is that Kislyak was probably subjected to traditional FISA surveillance by the FBI; or, since he lived in Russia and traveled to other places when not in America, perhaps he was also a FISA Section 702 target. In either event (or both), Kislyak was interacting with Americans, who were thus incidentally intercepted.
That, the story goes, is what must have happened to Flynn. Trump’s designated national security advisor was unmasked because, once intelligence agents intercepted the December 29 phone call, they decided it was essential to identify the person with whom the Russian ambassador was discussing sanctions that President Obama had just imposed against Moscow.
I no longer buy this story. If it were true, there would be a record of Flynn’s unmasking. DNI Grenell has represented that the list he provided to Senators Grassley and Johnson includes all requested unmaskings of Flynn from November 8, 2016 (when Donald Trump was elected president) through the end of January 2017 (when the Trump administration had transitioned into power). Yet, it appears that not a single listed unmasking pertains to the December 29 Kislyak call.
Timeline details and Strzok-Page comms snipped.
Well, the possibility that first leaps to mind is: Maybe Flynn was a FISA surveillance target. That is, his interception was not incidental. Rather, the FBI was monitoring him under FISA because he was a suspected agent of a foreign power — the theory based on which the bureau opened their counterintelligence investigation of Flynn in August 2016. But that can’t be right. After an exhaustive investigation of the FBI’s abuse of FISA, Justice Department Inspector General Michael Horowitz concluded that there is no evidence the FBI “requested or seriously considered FISA surveillance of . . . Flynn.” (IG Report’s “Executive Summary,” p. vi.)
It is more likely, then, that the Flynn–Kislyak call was captured by intelligence operations that are not governed by FISA.
Snip.
Readers of my book Ball of Collusion know I have argued that the Obama administration’s Trump–Russia probe/political-narrative long predated the FBI’s July 2016 opening of “Crossfire Hurricane.” I believe there were several strands of the Trump–Russia probe, and that they trace back to 2015, around the time of Donald Trump’s entry into the race for the Republican presidential nomination.
The CIA played a central role. The agency collaborated — I’m tempted to say colluded! — with a variety of friendly foreign intelligence services, especially NATO countries that Trump made a habit of bashing on the campaign trail.
Barack Obama warned his successor against hiring Michael Flynn. It was Nov. 10, 2016, just two days after Donald Trump upset Hillary Clinton to become the 45th president of the United States. Trump told aide Hope Hicks that he was bewildered by the president’s warning. Of all the important things Obama could have discussed with him, the outgoing commander in chief wanted to talk about Michael Flynn.
The question of why Obama was so focused on Flynn is especially revealing now. The Department of Justice recently filed to withdraw charges against the retired three-star general for making false statements to the FBI in a Jan. 24, 2017, interview regarding a phone call with a Russian diplomat. The circumstances surrounding the call and subsequent FBI interview have given rise to a vast conspiracy theory that was weaponized to imprison a decorated war hero and a strategic thinker whose battlefield innovations saved countless American lives. There is no evidence that Flynn “colluded” with Russia, and the evidence that Flynn did not make false statements to the FBI has been buried by the bureau, including current Director Christopher Wray.
So if the Obama administration wasn’t alarmed by Flynn’s nonexistent ties to Russia, why was he Obama’s No. 1 target? Why were officials from the previous administration intercepting his phone calls with the Russian ambassador?
The answer is that Obama saw Flynn as a signal threat to his legacy, which was rooted in his July 2015 nuclear agreement with Iran—the Joint Comprehensive Plan of Action (JCPOA). Flynn had said long before he signed on with the Trump campaign that it was a catastrophe to realign American interests with those of a terror state. And now that the candidate he’d advised was the new president-elect, Flynn was in a position to help undo the deal. To stop Flynn, the outgoing White House ran the same offense it used to sell the Iran deal—they smeared Flynn through the press as an agent of a foreign power, spied on him, and leaked classified intercepts of his conversations to reliable echo chamber allies.
Rep. Katie Porter, D-Calif., criticized her own party’s coronavirus legislation this week as House Speaker Nancy Pelosi, D-Calif., pressured the Republican-controlled Senate to adopt what Porter described as a Democratic “wish list.”
“The HEROES Act is dead on arrival,” Porter said Tuesday, referring to the $3 trillion package the House passed last week as a follow-up to the CARES Act. Her comments during an online meeting hosted by the Tustin [Calif.] Democratic Club were first reported by the Washington Examiner.
“There was no bipartisan negotiation here and no effort at bipartisan negotiation,
Snip.
But tucked into the legislation are provisions that rankled the Republicans, including expanding $1,200 checks to certain undocumented immigrants, restoring the full State and Local Tax Deduction (SALT) that helps individuals in high-taxed blue states, a $25 billion rescue for the U.S. Postal Service, allowing legal marijuana businesses to access banking services and early voting and vote-by-mail provisions.
“I did find myself, Porter said, “on the House floor thinking [of] my Republican colleagues who said, ‘This bill is a Democratic wish list written by a handful of Democrats, and shoved down the throats of the rest of the Congress.’
Restoring SALT is a giveaway to blue state billionaires. Sounds like the marijuana banking part should be passed, but there’s no reason to cram it into a coronavirus relief bill. And the early voting and vote-by-mail provisions are designed to help further voting fraud. Speaking of which:
A former Judge of Elections in Philadelphia, Pennsylvania, has been charged and pleaded guilty to illegally adding votes for Democrat candidates in judicial races in 2014, 2015, and 2016.
On Thursday, the Department of Justice (DOJ) announced charges against former Judge of Elections Domenick DeMuro, 73, for stuffing the ballot box for Democrats in exchange for payment by a paid political consultant.
The charges, and guilty plea, include conspiracy to deprive Philadelphia voters of their civil rights by fraudulently stuffing the ballot boxes for specific Democrat candidates in the 2014, 2015, and 2016 primary elections and a violation of the Travel Act.
“The Trump administration’s prosecution of election fraud stands in stark contrast to the total failure of the Obama Justice Department to enforce these laws,” Public Interest Legal Foundation President Christian Adams said in a statement. “Right now, other federal prosecutors are aware of cases of double voting in federal elections as well as noncitizen voting. Attorney General William Barr should prompt those other offices to do their duty and prosecute known election crimes.”
As Judge of Elections, DeMuro was paid to oversee the election process in the 39th Ward, which encompasses Philadelphia.
DeMuro’s guilty plea states that he was paid by a political consultant to illegally add votes for particular Democrat candidates in primary judicial races. The political consultant who allegedly paid DeMuro had been hired by those Democrat candidates.
According to the indictment, the political consultant allegedly solicited payments from Democrat candidates who hired him, classifying them as “consulting fees.” The payments — which ranged from $300 to $5,000 — were then allegedly used to pay Election Board Officials, such as DeMuro, in exchange for those officials illegally adding votes for the consultants’ Democrat candidates.
In addition to certifying fraudulent results to help Democrats, DeMuro also took a hands-on approach to voting fraud: “Demuro fraudulently stuffed the ballot box by literally standing in a voting booth and voting over and over, as fast as he could, while he thought the coast was clear.” (Hat tip: Chuck DeVore.)
Several posts here suggested that Sweden’s model of reaching herd immunity might be a better method than what we were doing. Now that the data is in: not so much. “Sweden becomes country with highest coronavirus death rate per capita.”
Speaking of data, the way media dashboards count the numbers are skewed high. “At the time of Colorado’s announcement on Friday, the CDC-definition tally, used in CNN’s “dashboard” and all the other media reports, stood at 1,150 statewide. But only 878 of those, more than 23 percent less, are identified as deaths due to COVID-19.”
CNN has staked out a position in its coverage of Wuhan virus that can only be explained in one way. They perceive a drawn-out lock down of America as something that will damage President Trump’s reelection chances and therefore it is something to be preserved. The move by a handful of governors to re-open their states to normal life despite the latest pronouncement from the latest M.D. or Ph.D. who fancies himself as Galactic Commander, threatens to reveal the Wuhan virus’s new clothing, so to speak. Therefore, anything that can be done to discredit the incontrovertible data that shows whatever threat Wuhan virus presented is now largely abated must be discredited.
More tests are being given, and the positives rate is actually declining.
Oregon’s Democratic governor Kate Brown: “No shopping in open counties for those in closed counties!”
Speaking of California: More suicides than coronavirus deaths? I know that “data” is not the plural of “anecdote,” but maybe somebody should run the numbers…
Is Tesla planning a Gigafactory near Austin? There are still big tracks of land available out near 130…
Wargaming a war between the U.S. and China in 2030. Don’t be so sure they could knock out our carriers with hypersonic missiles, and our drones and submarines would wreck havoc with their trade.
Case Western Reserve University School of Medicine professor and former Cleveland Clinic employee was arrested Wednesday over his alleged ties to China.
The Justice Department announced that Qing Wang was arrested at his Shaker Heights, Ohio home as part of a joint operation conducted by the FBI and the Department of Health and Human Service Office of the Inspector-General. Wang was charged with wire fraud related to more than $3.6 million in grant funding that Wang and his research team at the Cleveland Clinic had received from the National Institutes of Health.
According to the criminal complaint, Wang failed to disclose affiliations with Chinese universities. He also allegedly failed to disclose that he had received grants from the National Natural Science Foundation of China for a nearly identical research project. He held the title Dean of the College of Life Sciences and Technology at Huazhong University of Science and Technology.
Cleveland Special Agent-in-Charge Eric Smith said this wasn’t “a simple case of omission, ” adding that “Wang deliberately failed to disclose his Chinese grants and foreign positions and even engaged in a pervasive pattern of fraud to avoid criminal culpability.”
The 40-year old girlfriend of 74-year old former Texas Lt. Governor David Dewhurst cracked two of his ribs. (Hat tip: Dwight.)
Magazine publisher Conde Nast lays off about 100 employees. Maybe the entire Teen Vogue Anal Sex department got laid off. Hopefully there are some good Python courses available in their area…
Universally respected mystery expert Otto Penzler was let go as editor of the Best American Mystery Stories of the Year so the publisher could pick stories based on “affirmative action” criteria rather than excellence.
When you're 24 and break into a 73 year-old’s house and threaten him and his wife with a knife and don't know he was a boxer, a marine, and hand-to-hand combat instructor. pic.twitter.com/Ep5pao8GKN
Recall just days ago we reported that Tesla was sending people back to work at its Fremont factory in Alameda County before the area’s lockdown expired.
Late last week, Alameda County responded by telling Musk that he could not re-open his factory. “We have not given the green light. We have been working with them looking at some of their safety plans. But no, we have not said that it is appropriate to move forward,” Erica Pan, interim health officer for the Alameda County Public Health Department, said on an online town hall meeting on Friday.
That was enough to trigger a total Elon Musk meltdown. The CEO, who has been going off on diatribes about civil liberties on conference calls and podcasts alike, Tweeted out on Saturday that he is going to be suing Alameda County for not allowing him to re-open
Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.
The question is what took him so long. Thanks to one party Democratic rule, California constantly ranks as one of the worst states to do business in. High taxes and a brutal regulatory environment made California prohibitively expense to do business in long before the Wuhan coronavirus lockdown provided the final straw.
Come to Texas! We would welcome Tesla HQ in Texas. We love jobs & Texans very much want to open up & get back to work (while still staying safe & following sound science). We make lots of cars & trucks in Texas, and we’d love more!! 🇺🇸🇺🇸🇺🇸 https://t.co/F9O0N3yase
Come to Texas. Enjoy no state income tax, friendly people, best queso on earth, and freedom. Just don’t bring blue voting, or you’ll mess it all up. https://t.co/WJwyW6bEDEpic.twitter.com/E6tdO3edWj
Is this just a negotiating ploy to pressure the county into allowing Tesla to resume manufacturing? Possibly. But plenty of companies have already moved operations from California to Texas, including Toyota, Kubota, and Charles Schwab. And that exodus just keeps continuing.
I used to do a regular Texas vs. California update, detailing how bad California’s business climate was and detailing all the California businesses going bankrupt or moving to Texas. Eventually I got so far behind that the in-progress post simply got too huge to finish. (And this was right around the time I started doing the Clown Car Update, which sucked up huge amounts of my time.) And then the Wuhan Coronavirus came along to wallop everyone’s economy, so most of those links are probably moot. I have a very strong suspicion that ending the unreasonable lockdown conditions earlier than most states will help Texas recover more strongly, and increase it’s lead as a business-friendly environment over California.
Welcome to a Friday the 13th LinkSwarm! Try to avoid hockey-mask-wearing serial killers today.
Although I feel slightly dirty putting up a link to Vox, this piece on how Alaska’s Permanent Fund Dividend warps the politics of the state is worth reading, even if you have to factor in Vox’s anti-conservative bias. And I was unaware that Alaska now has the highest unemployment rate in the country…
Chicago, Los Angeles and New York are among the worst-run cities in the country, and residents are leaving. If only there was one single common (D)enominator to all those cities…
President Trump seeks a ban on flavored vaping. This is a very stupid approach to something that is largely a non-problem. It’s not the government’s purpose to protect people from themselves, even if it were vaping is several orders of magnitude less dangerous to your health than smoking, and this is appropriately handled at the state or local (not national) level. Plus there is a sufficient framework of laws to making sales to minors illegal anywhere they’re not already illegal. President Trump is simply wrong here.
Brexit is already changing the British economy. For the better.
The economy overall expanded by 0.3 per cent in July, significantly faster than the 0.1 per cent expected, and better than most of our main rivals. Next, we found out that the trade deficit narrowed slightly as imports fell. Finally, we learned that employment was at record highs and that wages were still growing at record rates. Add in a Chancellor who is about to start spending money with carefree abandon and there is no reason why it shouldn’t improve from here. It isn’t fantastic. But it is a decent performance from a mature economy facing what is meant to be its biggest economic challenge in a generation.
The best data we have suggest that the vast majority of Americans view political correctness as a problem, and that, contra the claim of many progressives, this is not a battlefield consisting of resentful ranting whites on one side and oppressed people on the other, the latter simply asking to be treated and spoken of with decency. In fact, the people most enthusiastic about intense forms of language-policing tend to be more privileged and more white, according to a national political-correctness survey conducted by the firm More in Common that made headlines last year. As Yascha Mounk wrote in his writeup in The Atlantic, “While 83 percent of respondents who make less than $50,000 dislike political correctness, just 70 percent of those who make more than $100,000 are skeptical about it. And while 87 percent who have never attended college think that political correctness has grown to be a problem, only 66 percent of those with a postgraduate degree share that sentiment.” Moreover, “Whites are ever so slightly less likely than average to believe that political correctness is a problem in the country: 79 percent of them share this sentiment. Instead, it is Asians (82 percent), Hispanics (87 percent), and American Indians (88 percent) who are most likely to oppose political correctness.”
Now, people have criticized that survey on the grounds that if you ask people whether “X is a problem,” where X is a culture-war buzzword, you’re likely to get a lot of positive responses. I think there’s something to this critique, but the numbers are too overwhelming to fully discount it. I also think that if you’re going to argue that PC is just a synonym for “being a decent person” you should then explain why so many Americans think that concept is a problem. Are Americans that invested in indecency?
Plus, it would be one thing if this survey were some sort of strange outlier, but if you look at the data we have on specific culture-war blowups of relevance to the PC and/or cancel-culture debates, you find the same pattern over and over. Almost always, the opinions most commonly represented in mainstream progressive outlets are not held by the masses, including by the groups seemingly with the most at stake. I’ve written about this before: On issues ranging from Ralph Northam’s blackface scandal to the Washington football team name to what term(s) should be used to refer to people of recent Latin American descent, woke-progressive opinion is often very out of line with that of the majority of members of the groups in question. Not only do the wokest progressives not speak for Americans; they don’t speak for the groups they’re claiming to want to protect. A 40-year-old American Indian from Oklahoma — that paragon of wealth and privilege and white resentment, of course — made this point pretty succinctly when he was interviewed for a focus group which accompanied the release of the More In Common survey: “It seems like everyday you wake up something has changed … Do you say Jew? Or Jewish? Is it a black guy? African-American? … You are on your toes because you never know what to say. So political correctness in that sense is scary.”
“It’s new,” Stone says of cancel culture, the term used to refer to boycotts started (usually via social media) when a person or group is offended by a star or brand. “I don’t want to say it’s the same as it’s always been. The kids are fucking different than us. There’s a generational thing going on.” Currently, Dave Chappelle is in the crosshairs for his latest Netflix stand-up special, Sticks and Stones. “I know some people have been canceled for genuinely, like, personal behavior, but Dave is not getting canceled anytime soon,” Stone says, joking that South Park and Chappelle are “grandfathered” out of the culture.
Stone also shared his theory as to why critics were so hard on the latest Chappelle special, while viewers seemed to enjoy it far more. “I feel bad for television critics and cultural critics,” he explains. “They may have laughed like hell at that, and then they went home and they know what they have to write to keep their job. So when I read TV reviews or cultural reviews, I think of someone in prison, writing. I think about somebody writing a hostage note. This is not what they think. This is what they have to do to keep their job in a social media world. So I don’t hold it against them.”
Also:
One of the most notable aspects from last season was the lack of any political dealings, specifically the nearly total absence of Donald Trump via the Mr. Garrison persona. “It was nice for us,” Parker says. “It was nice to not come in and talk about Donald Trump. And I think it was nice for people to watch and go, ‘Oh, yeah, there is still comedy outside of fucking Donald Trump. There is still funny shit as the world goes on.’ And you can get your Trump comedy on so many other shows.”
Every segment they air is selected because they think/hope it will damage President Trump and disenfranchise the tens of millions of Americans who voted for and support him. They don’t report news. They select only stories that they think will damage President Trump, and ignore or otherwise downplay and dilute the stories that don’t.
MyPayrollHR, a now defunct cloud-based payroll processing firm based in upstate New York, abruptly ceased operations this past week after stiffing employees at thousands of companies. The ongoing debacle, which allegedly involves malfeasance on the part of the payroll company’s CEO, resulted in countless people having money drained from their bank accounts and has left nearly $35 million worth of payroll and tax payments in legal limbo.
Snip.
Financial institutions are supposed to ignore or reject payment instructions that don’t comport with precise formatting required by the National Automated Clearinghouse Association (NACHA), the not-for-profit organization that provides the backbone for the electronic movement of money in the United States. But Slavkin said a number of financial institutions ended up processing both reversal requests, meaning a fair number of employees at companies that use MyPayrollHR suddenly saw a month’s worth of payroll payments withdrawn from their bank accounts.
Fake influencer exposed. Oh wait, let me rephrase that: More fake than usual influencer exposed. I’m not on Instagram, and I’m incredulous that “influencer” is even a thing. Maybe I could start an “anti-influencer” channel, with just videos of me reading a book while occasionally sipping from a can of off-brand diet root beer. Maybe I could get famous brands to me not to wear their clothing…
Permit me to list just a few of the more troubling accounts I was privy to during the committee’s meeting. Far more times than I would care to mention, the name “Indiana Jones” (the adopted title Dr. Jones insists on being called) has appeared in governmental reports linking him to the Nazi Party, black-market antiquities dealers, underground cults, human sacrifice, Indian child slave labor, and the Chinese mafia. There are a plethora of international criminal charges against Dr. Jones, which include but are not limited to: bringing unregistered weapons into and out of the country; property damage; desecration of national and historical landmarks; impersonating officials; arson; grand theft (automobiles, motorcycles, aircraft, and watercraft in just a one week span last year); excavating without a permit; countless antiquities violations; public endangerment; voluntary and involuntary manslaughter; and, allegedly, murder.
(Hat tip: Greg Benford on Facebook.)
Poland frowns on Greenpeace’s shenanigans:
No messing about 💪
Armed Polish border guards board Greenpeace 'Rainbow Warrior' ship blocking the delivery of coal to the port of Gdansk.
Greenpeace have accused Polish authorities of using excessive force.
I’ve reported on the problems of Tesla Motors before. Elon Musk’s California-based electric car company has a slavishly-devoted fanbase quick to attack critics, but thus far Tesla has produced more hype than profits. “The more cars it sells the more cash it burns.”
Now Coyote Blog has offered an extensive roundup of just how dire the economic straits that Tesla is in are:
The first quarter of 2019 was a disaster, with deliveries down despite initiation of Model 3 sales in Europe. Worse, since the Model 3 seems to be cannibalizing Model S and X sales, Tesla was not only selling fewer cars but its mix shifted to lower priced less profitable cars. It lost an enormous amount of money, and only after the conference call with analysts about first quarter results did Tesla reveal that this loss would have been far worse without a huge sale of government EV credits
Tesla burned a staggering amount of cash in the first quarter, and was forced to pay off nearly a billion dollars in debt when the stock price did not remain high enough for the debt to convert. While Tesla’s cash balance at the end of the quarter looked OK, there were two huge red flags. First, the cash barely covered a huge hole Tesla had in its net working capital. Second, given the large number of vehicles Tesla sold in its end of quarter push in the last 2 weeks of the quarter, it appears that Tesla was nearly out of cash in Mid-March and perhaps days away from a default (analysis below).
The Tesla financial statements still include a number of unexplained oddities, including a billion dollars of accounts receivable, or about 20% of quarterly revenues. How does a company that demands payment in advance before delivery have 20% of its quarterly revenues tied up in receivables?
Tesla announced, out of the blue, that it was closing all its retail stores and going online only. Given the drop in demand for the quarter, it was a head-scratcher as to why eliminating the sales force was going to help. The decision seemed to be almost off the cuff, as Tesla seemed surprised that they would still have to continue paying their expensive long-term mall leases. After this was revealed, Tesla partially reversed the closure decision, but no one — including their own retail folks — seems to know what the plan is now.
Tesla constantly fiddled with its prices and model lineup. It cut prices several times, but also announced a small raise as well. It eliminated certain options for cars, added new ones, and then reintroduced eliminated ones. Even long-time Tesla watchers are confused about the model lineup today.
Tesla continued to see an outflow of executive talent, including the exit of their very well-respected new General Counsel after just over one month on the job (Mr. Buttswinkas returned to his old law firm and purged Tesla from his resume). This seemed to parallel the rapid exit of an outside chief accounting officer last year who gave up millions of dollars to exit in just 60 days.
April car deliveries stayed on the same pace as the first quarter — ie, way worse than Tesla’s guidance
Elon Musk continued to get in trouble with the SEC, firing off production and sales guidance on Twitter that was different from Tesla’s official published guidance. Mr. Musk and Tesla are still guiding to a total delivery number for the next year that is well in excess of what most anyone else looking at the first four months believes is possible
Tesla announced a reveal of their Model Y crossover that will not go on sale until at least the end of 2020. Unlike past Tesla reveals, this one seemed hastily set up and the prototypes shown were weird. They looked more like the existing Model 3 with a few modifications than a promised crossover that could incorporate a third row of seats. Tesla asked customers to start making deposits (skeptics will argue that the whole point of the reveal was just to get some free financing from Tesla fanboys) but unlike past reveals, this one fell flat. There was apparently little interest in making deposits, though Tesla (unlike with past products) has not revealed the deposit numbers.
On top of all this, it announced out of the blue that it’s going to be make itself into an “autonomous taxi company”:
Musk has a demonstrated pattern that whenever he needs the stock price to be higher, or he needs to sell stock, or he needs some other kind of favorable financial outcome, he will do a new product demo. It worked for battery swap and the solar shingle and the model 3 and the semi, so it would work again. The model 3 reveal had collected hundreds of millions of dollars of cash in the form of deposits. That’s what he needed now. The problem is, they didn’t have a prototype to show. I believe Musk had the company hastily create a Model Y prototype built on top of a model 3. It did not really have to work, it just had to be something he could talk about. Interestingly, his VP of engineering quit at exactly this time, for reasons unknown — was their some internal dissention about this Y prototype?
Anyway, the Model Y reveal was essentially a flop, and likely garnered few deposits. Certainly not enough to fill in Tesla’s growing cash hole. And by Mid-March, Tesla may have been almost out of cash. Tesla says it delivered half its vehicles for the quarter in the last 10 days of March, so about 31,500 were delivered in those hectic days. At an average price of $50,000 each that would mean Tesla brought in nearly $1.6 billion in cash those last 10 days (this is conservative, may have been more if the average price was higher). But they only had $2.2 billion at the end of the quarter, meaning Tesla was scraping bottom in mid-March, particularly since hundreds of millions of that cash is restricted and not supposed to be spent.
Somewhere in this period of March-April, after his usual product reveal trick with the Y did not work, I think Musk came to the conclusion that the Tesla car business as currently defined was not going to work. Or, more accurately, it was never going to make enough money to support its sky-high stock valuation. I have always said that Tesla would make a fine $10 billion niche car company, but nothing about it justifies a $50 or $60 billion valuation. But at this point Musk can’t accept a $10 billion company, even though that would ostensibly still leave him a very rich man. But like Ken Lay at Enron, Musk has borrowed against at least half his Tesla stock and a falling stock price could lead to financial death by margin call (Musk, for some reason, also mortgaged all his multi-million dollar homes last December). His other investments are also struggling — SpaceX has been unable to attract the capital it needs of late and Musk has poured a lot of money into the Boring company, an absolute embarrassment of a company that helps refute, in my mind, his “smartest guy in the world” rep.
As Musk looked around for a way to save the stock valuation, the Lyft and Uber IPO’s must have had an influence. Uber is losing as much money as Tesla and folks are talking about it IPO-ing at a market cap of $70 billion. What if Tesla could call itself a ride-sharing company, only better. Wouldn’t that garner Tesla an even higher valuation?
Having not read The Smartest Guys in the Room, I am at something of a disadvantage when it comes to the collapse of Enron, but it seems to me that Enron was a profitable venture before wild over-expansion, shady regulatory arbitrage and outright accounting fraud brought it to bankruptcy. By contrast, Q4 2018 was the first time Telsa ever posted back-to-back profitable quarters.
Tesla could be a profitable company if it concentrated on manufacturing luxury cars and selling them through a traditional dealer network, just like Mercedes and BMW do today. Instead, Musk continues to chase the Next Big Thing in order to keep the overinflated stock prices high. (And it wouldn’t hurt if they did their manufacturing in a state with much saner cost, tax and regulatory structures than California.)
As the author notes: “This is the company that is going to spawn a thousand business school case studies.”
There’s a much criticized spending bill with a lot of poison pill provisions and a tiny bit of border wall funding President Trump is expected to sign, and then declare a national emergency to get the wall built.
While that’s up in the air, enjoy a Friday LinkSwarm:
Democrats don’t want to detain or deport violent felons. If that’s the hill they want to die on, bring on the shutdown. (Hat tip: Director Blue.)
“National Border Patrol Council president Brandon Judd told Breitbart News Tonight on Wednesday that Congress had ignored the advice of experts when reaching a deal to provide less than $1.4 billion for border fencing.”
The ludicrous nature of the Democrats’ “Green New Deal” continues to haunt them, leading to a lot of walking back economically insane socialist goals. NPR has the original text of the proposal.
These people think that they can adequately plan and run — for all time — an economic system from Washington that would guarantee: “a job with a family-sustaining wage, adequate family and medical leave, paid vacations, and retirement security to all people of the United States” as well as “access to nature.”
But they can’t even plan the roll out of a non-binding resolution and some press-release materials? And, when confronted by their own words, their immediate response was to accuse their enemies of sabotaging them? Gosh, by all means, let’s give them control of the entire economy. That couldn’t work out badly. I mean “Mistakes happen when doing time launches like this coordinating multiple groups and collaborators,” when uploading FAQs, not when doing anything as simple as commandeering the bulk of the U.S. economy.
Amazon cancels it’s New York City HQ2 expansion plans. Government shouldn’t be throwing subsidies at targeted corporations (nor picking winners and losers). The decision is also rich, zesty schadenfreude for Rep. Alexandria Ocasio-Cortez screwing over New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio, who both pushed hard for the Amazon deal.
This story should be absolutely infuriating to everyone on all sides of the political spectrum: rather than preserving or processing DNA rape kits, Oklahoma destroyed them.
How do Democrats expect to get socialism to work nationwide when they can’t even get it to work at one Panera Bread location?
Twitter bias is real. “Of 22 prominent, politically active individuals who are known to have been suspended since 2005 and who expressed a preference in the 2016 U.S. presidential election, 21 supported Donald Trump.” (Hat tip: Director Blue.)
Those pesky peasants are threatening the EU by daring to vote for parties of which the EU elite disapproved.
Brexit update:
Today I asked my successor as Brexit Secretary @SteveBarclay to confirm that, if the EU are not willing to agree a deal by 29 March, we will be leaving without a deal. He confirmed this is the case. pic.twitter.com/BGqecyUti5
New frontiers in unconstitutional legislation: “The Los Angeles City Council voted yesterday to require companies who want to contract with the city to disclose their relationships with the National Rifle Association.” (Hat tip: Ace of Spades HQ.)
Disgraced former Democratic state senator Carlos Uresti sentenced to five years for bribery. Unfortunately it will run concurrently with his fraud conviction, and therefore result in no additional time in prison. (Hat tip: Dwight.)
“Millennials Have Discovered ‘Going Out’ Sucks.” And they only discovered this after cities pushed densification policies to hurd them all downtown where the clubs and bars are… (Hat tip: Millennial Conservative.)
Job interviews and book-related work have taken up the majority of my waking hours this week. Also, The Burning Time has fully arrived here in central Texas. It’s supposed to hit 108° on Monday…
There are plenty of risks with President Donald Trump’s trade strategy in China, but China faces risks of its own:
The smartest short-term decision Beijing can make is simply to absorb the next round of blows and hold its punches. For instance, if Washington moves ahead to impose 25% tariffs on $16 billion of Chinese imports, Beijing would withhold fire, in the hope of enticing Washington into a ceasefire, which in turn could create an opportunity to negotiate a face-saving way to avoid further and much more costly escalations.
The most compelling rationale behind this strategy of quick capitulation is to protect China’s centrality in the global manufacturing supply chain. About 43% of Chinese merchandise trade in 2017 (totaling $4.3 trillion) is, according to the Chinese Ministry of Commerce, “processing trade” (which involves importing intermediate goods and assembling the products in China). What China gains from processing trade is the utilization of its low-cost labor force, factories, and some technological spillover. Processing trade generates low value-added and profitability. For example, Foxconn, the Taiwanese company that assembles iPhones in China, had an operating margin of only 5.8% last year.
One of the greatest risks China faces in a prolonged trade war with the U.S. is the loss of its processing trade. Even a modest increase in American tariffs can make it uneconomical to base processing in China. Should the U.S.-China trade war escalate, many foreign companies manufacturing in China would be forced to relocate their supply chains. China could face the loss of millions of jobs, tens of thousands of shuttered factories, and a key driver of growth.
However, capitulating to a “trade bully,” as the Chinese media calls Trump, is hard for Xi, a strongman in his own right. Worse still, it is unclear what Trump wants or how China can appease him. The terms his negotiators presented to Beijing in early May were so harsh that it is inconceivable that Xi could accept them without being seen as selling out China.
Even if the trade war with the U.S. could be de-escalated with Chinese concessions, Beijing faces another painful decision. The trade war in general, and in particular the forced shutdown of the Chinese telecom equipment maker ZTE after Washington banned the company from using American-made parts have highlighted China’s strategic vulnerability from its economic interdependence with the U.S. Before the two countries became geopolitical adversaries, economic interdependence was a valuable asset for China. It could take advantage of this relationship to build up its strength while the mutual economic benefits cushioned their geopolitical conflict.
But with the overall U.S.-China relationship turning adversarial, economic interdependence is not only hard to sustain (as shown by the trade war), but also is rapidly becoming a serious strategic liability. As the economically-weaker party, China is particularly affected. In the technological arena, China now finds itself at the mercy of Washington in terms of access to vital parts (such as semiconductors) and critical technologies (operating systems such as Android and Windows). Should the U.S. decide to cut off Chinese access for whatever reason, a wide swathe of Chinese economy could face disruption.
China’s somewhat vulnerable on semiconductors, but it’s severely vulnerable on semiconductor equipment.
Democratic U.S. House candidate and socialist darling Alexandria Ocasio Cortez: “We need to occupy every airport.” Yeah. I can’t possibly see that backfiring. Sayeth Powerline’s John Hindraker:
Yes, please! Please go straight to LaGuardia and shut it down. But don’t stop there! “Every airport” needs to be occupied and shut down by Democrats. Between now and the midterm elections, Democrats should do all they can to make air travel inconvenient, and preferably impossible.
This actually happened not too long ago, in the fall of 2001. Ocasio-Cortez may be too young to remember it clearly, but all of America’s airports were closed for a few days as a result of al Qaeda’s terrorist attacks. Ocasio-Cortez is more ambitious, of course. She doesn’t just want to shut down “every airport” for a few days, she wants to make it long-term. Terrific, I say! Led by Ocasio-Cortez, the Democratic Party could be as popular as al Qaeda by November.
Congress breaks record confirming trump picks. Also, check out this from Sen. Dianna Feinstein (D-CA): Oldham’s record “could not be more extreme and overtly political.” Really? Did he order kittens to be slaughtered in his chamber so he could bath in their blood while invoking Satan? No? In that case, I’d say he his a lot of headroom on the “more extreme” front… (Hat tip: Instapundit.)
The most difficult times I faced during my years with the LAPD were during the years Bernard Parks served as its chief. Parks, in an overreaction to the Rampart scandal (which, though a genuine scandal, was confined to a handful of officers at a single police station), had disbanded the LAPD’s gang units and instituted a disciplinary system that placed a penalty on proactive police work. It was under Chief Parks that I attended a supervisors’ meeting after a week in which my patrol division had seen four murders and a wave of lesser crimes. Despite these grim statistics, not a single word at this meeting touched on the subject of crime. What did we talk about? Citizen complaints. And even at that we didn’t discuss them in terms of the corrosive effect they were having on officer morale. Instead, we talked about the processing of the paperwork and the minutia of formatting the reports. Fighting crime, it seemed, had taken a back seat to dealing with citizen complaints, even the most frivolous of which required hours and hours of a supervisor’s time to investigate and complete the required reports.
As one might have expected, officers reacted to these disincentives by practicing “drive-and-wave” policing. Yes, they responded to radio calls as ever, but it became all but impossible to coax them out of their cars to investigate suspicious activity when they came upon it. As one might also have expected, the crime numbers reflected this change in police attitudes. Violent crime, which had been falling for seven years, began to increase and continued to increase until Bernard Parks was let go and replaced by William Bratton.
Which brings us back to Baltimore, where, USA Today informs us, 342 people were murdered in 2017, bringing its murder rate to an all-time high and making it the deadliest large city in America. (Baltimore’s population last year was about 611,000. In Los Angeles, by comparison, with a population of about 3.8 million, there were 293 murders last year.)
The Baltimore crime wave can be traced, almost to the very day in April 2015, that Freddie Gray, a small-time drug dealer and petty criminal, died in police custody. When Baltimore State’s Attorney Marilyn Mosby made the ill-considered decision to charge six officers in Gray’s death, she sent a clear message to the rest of the city’s police officers: concerns about crime and disorder will be subordinated to the quest for social justice.
As was the case in Los Angeles years ago, the result was entirely predictable. Officers disengaged from proactive police work, minimizing their risk of being the next cop to be seated in the defendant’s chair in some Marilyn Mosby show trial. The prevailing thought among Baltimore’s cops was something like this: They can make me come to work, they can make me handle my calls and take my reports, but they can’t make me chase the next hoodlum with a gun I come across, because if I chase him I might catch him, and if I catch him I might have to hit him or, heaven forbid, shoot him. And if that happens and Marilyn Mosby comes to the opinion that I transgressed in any way . . . well, forget it. Let the bodies fall where they may, and I’ll be happy to put up the crime-scene tape and wait for the detectives and the coroner to show up.
Andrew Cuomo fundraising tidbits. Cuomo has $31.1 million cash on hand and spent more on TV advertising ($1.5 million) than Cynthia Nixon has raised in total. Bonuses: Low-level shenanigans (one guy gave 69 donations totally $77) and Winklevoss twins!
Defeated Republican state representative Jason Villalba calls for President Trump’s impeachment. Thanks for reminding Republican primary voters, yet again, why they dumped you for Lisa Luby Ryan.
“Kicking, screaming, biting Kansas councilwoman finally taken down with Taser, arrested.” Bonus 1: She later bite a deputy’s thumb so hard she broke a bone. Bonus 2: She was elected to the Huron (population: 73) city council with a grand total of 2 votes.
Republicans have serious leads in West Virginia, where incumbent Democrat Joe Manchin trails by 14 points; North Dakota, where incumbent Democrat Heidi Heitkamp trails by 8; Indiana, where incumbent Democrat Joe Donnelly trails by 5; Missouri, where incumbent Democrat Claire McCaskill trails by 5; Montana, where incumbent Democrat Jon Tester trails by 5; Florida, where incumbent Democrat Bill Nelson is locked in a near-deadlock with Rick Scott; and Pennsylvania and Ohio, where incumbent Democrats Bill Casey and Sherrod Brown are leading by less than two points each, plus Virginia, where Tim Kaine leads by just 3 on the generic ballot.
When Obama left the White House in a helicopter that horrible day, I had the impression our true father was leaving & the nation was stuck with a stepfather who was going to rape us. Now I increasingly believe that the media is the mother who won’t stand up for us & defy him.
Bill Clinton Bill Cosby and Roman Polanski have been expelled from The Academy of Motion Picture Arts and Sciences. “Forty years of tolerating a Hollywood director anally raping a 14-year old is enough!”
Israel steals a ton of documentation that proved that Iran lied about the nuke deal. Duh. Everyone in the world except Obama’s moronic clutch of idiot weasel sycophants knew Iran was lying.
Last night mother nature dumped a bunch of snow on Austin…very little of which stayed on the ground through this morning. Which is just fine for those of us who have jobs.
I’ll still sorting out the latest DOJ/FBI revelations to have them all filed in the next Clinton Corruption update, which should be ginormous.
Wisconsin’s infamous John Doe investigation was more sinister and politically driven than originally reported.
A Wisconsin Attorney General report on the year-long investigation into leaks of sealed John Doe court documents to a liberal British publication in September 2016 finds a rogue agency of partisan bureaucrats bent on a mission “to bring down the (Gov. Scott) Walker campaign and the Governor himself.”
The AG report, released Wednesday, details an expanded John Doe probe into a “broad range of Wisconsin Republicans,” a “John Doe III,” according to Attorney General Brad Schimel, that widened the scope of the so-called John Doe II investigation into dozens of right-of-center groups and scores of conservatives. Republican lawmakers, conservative talk show hosts, a former employee from the MacIver Institute, average citizens, even churches, were secretly monitored by the dark John Doe.
State Department of Justice investigators found hundreds of thousands of John Doe documents in the possession of the GAB long after they were ordered to be turned over to the Wisconsin Supreme Court.
The Government Accountability Board, the state’s former “nonpartisan” speech cop, proved to be more partisan than originally suspected, the state Department of Justice report found. For reasons that “perhaps may never be fully explained,” GAB held onto thousands of private emails from Wisconsin conservatives in several folders on their servers marked “Opposition Research.” The report’s findings validate what conservatives have long contended was nothing more than a witch-hunt into limited government groups and the governor who was turning conservative ideas into public policy.
“Moreover, DOJ is deeply concerned by what appears to have been the weaponization of GAB by partisans in furtherance of political goals, which permitted the vast collection of highly personal information from dozens of Wisconsin Republicans without even taking modest steps to secure this information,” the report states.
Snip.
The Department of Justice, however, recommends the John Doe judge initiate contempt proceedings against former GAB officials and the John Doe probe’s special prosecutor for “grossly” mishandling secret evidence. Schimel also recommends that Shane Falk, who served as lead staff attorney in the John Doe probes, be referred for discipline to the Wisconsin Court System’s Office of Lawyer Regulation. Falk took a job with a private law firm in August 2014, just as allegations of investigative abuse began to surround the political investigation.
Another sexual harassment followup on Democratic Rep. Ruben Kihuen: “Hey, Nancy Pelosi knew all about my sexual harassment charges last year, and threw money at me anyway. So why’s she getting her knickers in a knot now?”
“You know who doesn’t have a refugee problem? Japan.” This year Japan has taken in three refugees. Last year it was 28.
Hmmmm: “A federal judge in Argentina indicted former President Cristina Fernandez for treason and asked for her arrest for allegedly covering up Iran’s possible role in the 1994 bombing of a Jewish community center that killed 85 people, a court ruling said.”
Last Sunday premiered the newly formed Islamic anti-terrorism coalition, putting together leaders from Sunni Arab nations to denounce and combat fundamentalist terrorism throughout the Middle East and the world. It was another bold initiative towards the West of the young and energetic Crown Prince of Saudi Arabia, coming on the heels of other bold moves that have looked to consolidate political and religious power in the Kingdom.
Together, all of these initiatives couldn’t be more transparent. They represent a movement of the most economically powerful nation in OPEC towards social, cultural and economic change, the realization of the Saudi “Vision 2030”. It is a top-down Arab Spring movement that likely has a better chance of success than the populist movements that resulted in more chaos than change in 2010.
However, the ultimate success for Vision 2030 will rely upon achieving the main economic goal of this revolution – the divestiture of Saudi Arabia from the singularity of oil revenues. Because we know that ultimately money – and lots of it – will be needed to drive the engines for change, we get a far better picture of just how important these latest production extensions agreed to in Vienna were for the young Prince.
And here we’re brought back to the upcoming IPO of Saudi Aramco, still on tap for 2018.
Even the planned 5 percent offering of the Saudi state oil assets could yield an instantaneous $100 billion dollars, if the $2 trillion-dollar valuation of Saudi Aramco is accurate. That’s a lot of capital to start the process of rebuilding a Saudi economy from one that is now virtually completely reliant upon the State. 75 percent of the Saudi public is under 35 years old, and they are starving for a new economic infrastructure that will bring job opportunities, cultural diversity, music, education – global access of all kinds – the kind of freedoms that the 2010 Arab Spring uprisings were supposed to deliver. Only this time, the push for change is coming from the top down, not as a populist movement from the people upwards.
In a rare moment of sanity for Sports Illustrated, they named J. J. Watt and the Houston Astro’s Jose Altuve as co-sportsmen of the year. Next week I’m sure they’ll get back to their usual Social Justicing…
Texas writer Bill Crider enters hospice care. Bill’s not particularly political, but he is a friend of mine, and I have frequently stolen some of the lighter LinkSwarm items from his blog. He’s a prince among men and he will be missed…
I keep pouring news items into the next Texas vs. California Roundup bucket, but there’s so much in there it’s ceased to be a bucket, zoomed past bathtub, eclipsed swimming pool, and is now looking more like a flood retention pond. Maybe next week, if everything breaks right.
But one of the topics sloshing around there is the travails of Elon Musk’s media-darling electric car company Tesla. And there’s just enough news there to do a Tesla-only roundup:
One reason for the loss? An inability to reliably weld parts. I’m going to go out on a limb and suggest that this is a solved problem for most automobile manufacturers…
Tesla has no one who can run the new robotic welders – they are finding it impossible to regulate and apply the right amount of heat to do high-speed welding. He said that while Tesla may have the right robots, making them production ready is a highly specialized skill set and they don’t have it. His company was told to reduce production for the foreseeable future, until further notice, and produce to order, not in high volume.
Seeking Alpha has a lot more information on why many of Tesla plans and projections are mostly pie-in-the-sky dreaming.
And one of their writers goes so far as to say that, structurally, Tesla is doomed to failure. Including this pretty damning sentence: “The more cars it sells the more cash it burns.”
Telsa is facing a lawsuit by over 100 black employees alleging racial discrimination, including a “hostile work environment” and “use of the N-word.” Rent-seeking lawyers looking for an easy score? Probably. But Musk was the one who decided to build his plant in California…
California considers giving Tesla a $3 billion bailout, just as Tesla’s federal rebates are phased out. Because there’s no better use of taxpayer money than subsidies for status symbol cars for rich people.
Tesla employees want to unionize. Well, there goes profitability and flexible manufacturing…
Tesla is also planning to unveil a semi-truck on Thursday. Seeking Alpha thinks this is more a distraction from the Model 3 problems than a real product.
Remember Tesla’s ill-advised purchase of Solar City, another Elon Musk company? Well, guess who’s also having layoffs? Between Tesla and Solar City, apparently over 1,200 employees have been let go.
It seems fairly clear at this juncture that Tesla was founded on more green energy hype than a solid business model, and that Musk probably should have focused on making one ambitious, capital-intensive startup profitable, not the (four? five? six? seven?) he’s founded since cashing out of PayPal. (In addition to Tesla and Solar City, there’s also Space X, Hyperloop, The Boring Company, Neuralink, and the (non-profit) OpenAI. Of course, right now, all Musk’s current ventures are “non-profit”…)
Musk is one of those classic boy-makes-good American stories you want to root for, but in splitting his focus, and not realizing how very much harder and more capital-intensive hardware development is than software development, Musk’s story looks a lot more like an even older story: hubris clobbered by nemesis.
California has earned quite a reputation for being openly hostile to business, as confirmed by numerous studies and surveys. Its plethora of taxes and regulations are driving away legions of entrepreneurs and workers, but they are doing wonders for one segment of the economy: the moving industry. It is almost as though that industry is secretly lobbying the state Legislature for its anti-business policies.
Joe Vranich, as president of Spectrum Location Solutions, an Irvine business relocation consulting firm, knows all about what drives businesses’ decisions to give up and leave for greener pastures. According to his research, in just the past seven years, approximately 9,000 businesses have decided to leave California or expand their operations out of state. Companies leaving California typically save between 20 percent and 35 percent of operating costs, he concluded.
Texas has been the biggest beneficiary of California’s business exodus.
Snip.
California’s litigious climate has become a common complaint of business owners. No wonder the American Tort Reform Foundation once again named California the No. 1 “Judicial Hellhole” in the nation last year, based on the state’s excessive laws and regulations and a flood of disability access, asbestos and food advertising and labeling lawsuits, frequently more opportunistic attempts at extortion than legitimate attempts to seek justice for victims who have been truly harmed.
California has proven to be a particularly harsh climate for manufacturing businesses. “Even if California were to eliminate the state income taxes tomorrow, that still would not be enough,” CellPoint Corp. CEO Ehsan Gharatappeh told the Dallas Business Journal of the Costa Mesa company’s move to Forth Worth.
General Magnaplate Corp., which has made reinforced parts for the aerospace, transportation, medical, oil and other industries for 36 years, decided to shut down its California facility in Ventura altogether. “This is a very sad day for our employees and for my family, who have a long history of job creation in this area, but the simple fact is that the state of California does not provide a business-friendly environment,” CEO Candida Aversenti said in a press release. “Increases in workers’ compensation costs and government regulations, combined with predatory citizens groups and law firms that make their living entirely by preying on small businesses, have left us with no other choice but to shut down our California facility. This is in stark contrast to our New Jersey and Texas facilities, which are flourishing in small business-friendly environments created by the respective local governments and environmental agencies.”
Yahoo’s 279 workers let go this year contributed to the 3,135 tech jobs lost in the four-county region of Santa Clara, San Mateo, Alameda and San Francisco counties from January through April, as did the 50 workers axed at Toshiba America in Livermore and the 71 at Autodesk in San Francisco. In the first four months of last year, just 1,515 Bay Area tech workers were laid off, according to mandatory filings under California’s WARN Act. For that period in 2014, the region’s tech layoffs numbered 1,330.
The nation’s largest public pension fund, the California Public Employees’ Retirement System, has one-fifth of its assets in bonds and is down 1.3% since July 1, according to public documents. The system, known by its abbreviation Calpers, also has 53.1% of its assets in stocks, 9% in real estate and 9.4% in private equity. In 2015, Calpers posted a return of 2.4%, below its target rate of 7.5%.
Nor is CalSTARS doing much better:
The nation’s second-largest public pension plan, the California State Teachers’ Retirement System, has shifted a significant amount of money away from some stocks and bonds to protect against a downturn. It moved assets into U.S. Treasurys and so-called liquid-alternative funds, which mimic hedge-fund strategies. Calstrs, as the pension is called, reported gains of 1.5% during a choppy 2015, with returns on its fixed-income investments up just 0.6%.
(Note: WSJ link, so you may need to do the Google thing.)
The newest outrage comes from the Governor’s Office of Planning and Research in the form of a proposed “road diet.” This would essentially halt attempts to expand or improve our roads, even when improvements have been approved by voters. This strategy can only make life worse for most Californians, since nearly 85 percent of us use a car to get to work. This in a state that already has among the worst-maintained roads in the country, with two-thirds of them in poor or mediocre condition.
Snip.
In essence, the notion animating the “road diet” is to make congestion so terrible that people will be forced out of their cars and onto transit. It’s not planning for how to make the ways people live today more sustainable. It has, in fact, more in common with Soviet-style social engineering, which was based similarly on a particular notion of “science” and progressive values.
In the same vein, it’s no wonder that Whole Foods opened it’s first semi-automated Whole Foods 365 store in Los Angeles. “Promoted as a ‘chain for millennials,’ the new ‘365’ stores use about one-third less square footage than the company’s traditional 41,000-square-foot Whole Foods stores, but they also slash almost two-thirds of workers with robots and computerized kiosks.” (Hat tip: Director Blue.)
Schedule for California high speed rail boondoggle pushed back four more years. Latest obstacle: wealthy equestrians. “Hey, this study says horses won’t mind a super-fast, super loud train zipping along right next to them.” “You mean the study from the institute that two bullet train authority members sit on? Get stuffed!”
“The State Assembly Subcommittee on Education voted Tuesday to delay funding to the UC system because of concerns with the UC Retirement Plan, proposed by UC President Janet Napolitano in March, which would cause the university to incur significant costs. The delay was announced after an actuarial report was released earlier that day by Pension Trustees Advisors, or PTA, which showed that the retirement plan would cost the university $500 million in savings, or $34 million a year, over the next 15 years.” (Hat tip: Pension Tsunami.)
Maywood, California (which had previously outsourced services to the corrupt city of Bell) is on the brink of bankruptcy. (Hat tip: Dwight.)
“Another aviation company has decided to move its corporate headquarters to Fort Worth to take advantage of the Lone Star state’s business friendly environment and the city’s longtime history in the aerospace industry. The move is historic for Burbank, California-based C&S Propeller — an FAA and EASA certified repair station for propeller and airplane maintenance — which has been in California for nearly five decades.”
