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Having Solved All Other Problems, California Sets Its Sights On Banning Skittles

Sometimes after you solve all of the major crises your state is facing, as California has clearly done with rioting, looting, shoplifting, drug abuse, homelessness, insane taxes and public defecation, you have to move on to smaller issues.

Like Skittles.

At least that's what's happening in California, where a proposed bill "could force popular candies like Skittles to change their recipes — or stop selling them in California altogether", according to a new report from SF Gate

Assemblymember Jesse Gabriel introduced Assembly Bill 418 earlier this year, which seeks to "prohibit the manufacture, sale and distribution of food products containing five chemicals linked to cancer and other health risks". 

One of those chemicals is titanium dioxide, listed as an ingredient in Skittles. 

A lawsuit was filed in California last year alleging that Skittles were "unfit for human consumption", but it was thrown out. In 2016, Mars, the parent company of Skittles, promised to phase out the use of the chemical in its candy. 

Assemblymember Jesse Gabriel put out a press release last month stating: “Californians shouldn’t have to worry that the food they buy in their neighborhood grocery store might be full of dangerous additives or toxic chemicals.” 

"Many of the dangerous additives currently banned in the EU and other nations are found in processed foods and candies that are marketed to children, low-income consumers, and communities of color in the United States," the release states. 

Eleven organizations, including the Consumer Brands Association, the National Confectioners Association and the California Grocers Association, all wrote a letter to the California Assembly Committee on Health last week opposing the bill, however. 

"All five of these additives have been thoroughly reviewed by the federal and state systems and many international scientific bodies and continue to be deemed safe," they wrote. Signatories claimed that the bill "usurps the comprehensive food safety and approval system for these five additives and predetermines ongoing evaluations."

"We’re aware of the opposition letter and believe that the lack of meaningful arguments, data, and evidence actually strengthen the case for our legislation," Gabriel volleyed back. 

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California Man Arrested 10 Times In 31 Days, Faces 33 Charges

Authored by Jason Blair via The Epoch Times (emphasis ours),

A man in Fresno County, California was arrested 10 times within a span of 31 days, according to the Clovis Police Department.

Keith Chastain. (Courtesy of Clovis Police Department)

Keith Chastain’s first arrest was on Feb. 19, and his tenth was on March 21. He was booked by Clovis police six times and other agencies four times.

Chastain, 38, faces 18 felonies and 15 misdemeanors. Charges include six stolen vehicles, vandalism, DUI, possession of a controlled substance, fraud, and more, according to authorities.

“I don’t know what is happening in his life to cause him to steal so many people’s vehicles and property. It’s sad; I hope he gets some help,” Clovis Police Corporal Meredith Alexander told KMPH Fox 26.

On his tenth arrest, police received a tip over the phone and caught Chastain driving a stolen truck in Old Town Clovis. Police said he was on his way to the police station in the stolen vehicle to pick up his personal property.

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US Extends Carrier Deployment To Provide Military "Options" In Syria

Following last week's deadly attacks on US bases in northeast Syria by what the Pentagon called pro-Iran forces, the United States has announced an extension of the George HW Bush Carrier Strike Group's deployment in the Mediterranean region

"The extension of the George HW Bush Carrier Strike Group, inclusive of the USS Leyte Gulf, the USS Delbert D. Black, and the USNS Arctic, allows options to potentially bolster the capabilities of CENTCOM to respond to a range of contingencies in the Middle East," US Central Command (CENTCOM) spokesman Colonel Joe Buccino said Friday.

The George HW Bush carrier is currently near Italy and Sicily. Like with prior US military intervention in Syria, for example the major anti-government strikes on Damascus and elsewhere in 2017 and 2018 under the Trump administration, the Pentagon typically launches missiles from the Mediterranean.

According to Reuters, "Buccino also noted a scheduled, expedited deployment of a squadron of A-10 attack aircraft to the region."

"One U.S. official, speaking on condition of anonymity, said the Bush strike group was expected to remain in the European Command area of responsibility," the report continues.

Last Thursday, US forces mounted attacks against Iranian-linked groups in Syria after a US contractor was killed and five military service members and another US contractor were wounded in a drone strike conducted by an unknown group.

But the Pentagon has now revised the number of American wounded upward to 12, citing "traumatic brain injuries", per CNN

Six US service members have been diagnosed with traumatic brain injuries as a result of attacks from Iran-backed groups in Syria last week.

Four US troops at the coalition base near al Hasakah that was attacked on March 23 by a suspected Iranian drone, and two service members at Mission Support Site Green Village attacked on March 24, have been identified as having brain injuries in screening since the attacks, Pentagon spokesman Brig. Gen. Patrick Ryder said Thursday.

Gen. Ryder explained, "As standard procedure, all personnel in the vicinity of a blast are screened for traumatic brain injuries." He added: "So these additional injuries were identified during post-attack medical screenings."

Traumatic brain injuries among US troops were last reported on a large-scale in February 2020 after Iran launched cruise missiles on an American base in neighboring Iraq, in retaliation for the Jan. 3rd US killing of IRGC General Qassem Soleimani in drone strike at the Baghdad airport.

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Bitcoin & Bullion Soar In Q1 As The Dollar Dumps, Banks Battered, Big-Tech Booms

Q1 2023 - and even more specifically the month of March - can be summarized with one simple image...

Bank crisis in US and EU, global war rhetoric rising, de-dollarization actions escalating, US layoffs exploding? Makes you wonder about the state of the dollar eh?

Source: Bloomberg

BUT Everything must be ok right - the S&P 500 is above pre-SVB levels (just ignore the bank stocks collapse)...

Source: Bloomberg

However, a bigger picture look paints a different picture as the dollar suffered its second straight quarterly decline) as Bitcoin soared over 70% and Gold jumped almost 9% (bonds and stocks were also higher in Q1)...

Source: Bloomberg

In equity-land, the divergence across the majors in Q1 is quite shocking as long-duration mega-cap tech (and trash) soared while Big-Caps (Dow) and Small-Caps (Russell 2000 - heavy with small financials) ended around unchanged.

That was the Nasdaq's best quarterly performance since Q2 2020 (and before that to Q1 2012)...

Source: Bloomberg

For the month, the Nasdaq is up over 8%, its biggest March advance since 2010. The Russell 2000 and Trannies were the ugliest horse in March's glue factory...

Source: Bloomberg

Dow surged to its best week since November, but Small Caps outperformed, up over 3%...

The last 3 Friday have seen fear over SVB, CS, & DB respectively, so 4th time was the charm this week with a major melt-up as early 0DTE negative delta flows (as the S&P broke above 2065 JPM Collar Call Strike) were rapidly unwound as stocks continued to squeeze higher and that accelerated the gains...

Source: SpotGamma

The S&P rallied all the way back up to the key 4100 level today...

The S&P 500's performance in Q1 was dominated by just 15 stocks...

In fact, it gets worse, according to Bianco Research, META, AAPL, AMZN, NFLX, GOOGL, MSFT, NVDA, TSLA account for all of the S&P's YTD return. They are up +4.6%. The other 492 stocks collectively are down for the year (-.99%).

Source: Bianco Research

Mega-Cap techs saw market caps soar with AAPL back above $2.5 trillion, MSFT back above $2 trillion, AMZN back above $1 trillion, and META and TSLA back above $500 billion...

Source: Bloomberg

Tech and Discretionary dramatically outperformed in Q1 while Energy and Financials lagged...

Source: Bloomberg

European markets were mixed in March with Germany and France ending green while UK was the biggest loser...

Source: Bloomberg

On the month, European banks are modest underperformers relative to US banks, but both are ugly...

Source: Bloomberg

March was a wake-up call for commercial real estate, as Office REITs crashed hard...

Source: Bloomberg

US growth stocks have dominated Q1, crushing value stocks (until this week when the ratio of Russell 1000 Value/ Growth hit the August lows). For context, this is the biggest growth/value quarter since Q1 2020 (and before that Q1 2009)

Source: Bloomberg

March saw bond vol (MOVE) explode relative to equity vol (VIX) - to the same extent as October 2008...

Source: Bloomberg

Thanks to March ugliness (and basically no issuance), corporate bond spreads in US and EU are wider in Q1 after blowing out wider in March, erasing all the compression from Jan/Fed...

Source: Bloomberg

While stocks bounced back above pre-SVB levels, the credit market remains much more stressed (even with the rally of the last 2 days)...

Source: Bloomberg

Q1 was a wild one for bonds with Treasury yields exploding higher on hawkish Fed realizations and then collapsing lower on safe-haven/recession anxiety over the bank crisis. Amid all the chaos, yields ended the quarter surprisingly grouped, down around 30bps or so (with the belly outperforming)...

Source: Bloomberg

March was a big month for the yield curve with its biggest monthly steepening since May 2013 (2s10s +32bps), ending Q1 unchanged...

Source: Bloomberg

Yields were all higher on the week (with the short-end underperforming)...

Source: Bloomberg

The market's expectations of The Fed's actions has swung violently in Q1 from a post-payrolls-beat, post-hawkish-Powell surge (expecting rates to  be over 100bps higher by year-end) to a post-SVB failure collapse (expecting rates to be almost 100bps lower by year-end). The quarter ends with coin-flip odds of one more rate-hike before The Fed is done and then cuts starting by September...

Source: Bloomberg

Interestingly, the short-term yield curve is ending Q1 just a little more dovish than it started it - having been dramatically more hawkish and dovish intra-quarter...

Source: Bloomberg

The dollar is set to end the quarter 1.4% lower, its first consecutive quarterly loss since 2020, amid easing concerns about the global banking sector and money market wagers on Federal Reserve interest-rate cuts. This is the 5th monthly drop in the dollar out of the last 6 months...

 

Source: Bloomberg

All the major cryptos had a good Q1, with Solana outperforming and Bitcoin gaining more than Ethereum (and that was in spite of 'Operation Choke Point 2.0')...

Source: Bloomberg

Bitcoin is up for the 3rd month in a row for its best quarterly gain since Q1 2021, back above $28,500 (and Ethereum is also up for 3 straight months (best Q since Q1 2021), nearing 7 month highs at $1850)...

Source: Bloomberg

NatGas was the standout commodity performance in Q1, collapsing 50% as warmer weather spoiled Putin's party plans. Gold was the quarter's best performer (along with copper - China reopening hopes) as crude closed lower...

Source: Bloomberg

Gold is up for the second quarter in a row (up over 19% in the  last 6 months - its best such gain since 2016), with its highest quarterly close in history. March saw gold rally almost 9% -its best month since July 2020 (topping $2000) once again...

Oil has been on a tear for the last two weeks with WTI back above $75, but remains down on the year, after breaking below its Jan/Feb range...

And finally, Q1 saw over $450 billion of inflows into Money-Market funds and over $300 billion in deposit outflows from US domestic banks...

Source: Bloomberg

And in case you were wondering what has sparked this sudden panic-buying in bonds, bullion, bitcoin, and big-tech? That's easy - The Fed!!! Just as we warned would happen mid-March...

It's the 'old QE' trade writ large. But what happens next (as The Fed balance sheet actually shrunk modestly last week) and Goldman's US Activity Index just dropped into contraction...

With recessionary signals growing louder, maybe pricing in some 'easing' by The Fed is 'fair' but that appears fully priced-in to stocks at near-record high valuations (esp. mega-cap tech).

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Yellen Warns Next Crisis Could Come From 'Shadow Banks' And Regulators Must Act

Authored by Tom Ozimek via The Epoch Times (emphasis ours),

Treasury Secretary Janet Yellen on Thursday said banking rules may need to be tightened after the recent failures of Silicon Valley Bank (SVB) and Signature Bank, while warning of structural vulnerabilities that must be addressed in the “shadow bank” sector that includes things like hedge funds and money market funds.

Treasury Secretary Janet Yellen testifies before the Senate Finance Committee in on Capitol Hill, in Washington, on March 16, 2023. (Chip Somodevilla/Getty Images)

In remarks prepared for delivery to the National Association for Business Economics (NABE), Yellen said that banking regulation and supervisory rules need to be reexamined in the wake of the twin collapses of SVB and Signature, which were sparked by bank runs.

“Anytime a bank fails, it is cause for serious concern. Regulatory requirements have been loosened in recent years. I believe it is appropriate to assess the impact of these deregulatory decisions and take any necessary actions in response,” Yellen said.

Yellen said a 2018 roll-back of bank capital requirements and stronger supervision for smaller and mid-size banks with assets below $250 billion should be reevaluated.

She added that regulatory reforms put in place after the 2008 financial crisis have helped the U.S. financial system cope with shocks, but that gaps remain and there’s scope to bolster resiliency.

“But the failures of two regional banks this month demonstrate that our business is unfinished,” Yellen said, adding that the U.S. financial system is now considerably more robust to shocks than it was during the previous crisis a dozen or so years ago.

This is perhaps best illustrated by the fact that we’ve seen relative stability in the overall banking sector this month, even as concerns grew about specific institutions,” she said.

Smaller community and regional banks have seen a rise in deposit outflows following the failures of SVB and Signature while big banks seen as “too big to fail” and more likely to be bailed out have been the beneficiaries. This has led to concerns that as deposits flee local banks, their provision of credit will dwindle, with negative economic impacts, especially on small businesses.

Yellen said it was important for regulators to assess whether the current supervisory and regulatory regimes are adequate for the risks that banks face and, if not, then policymakers “must act.”

While she made no specific proposals for tighter regulatory and supervisory standards, she said any next steps must take into account the “health and competitiveness of our vibrant community and regional banking institutions,” which could face an outsized impact from more regulations.

She acknowledged that more regulation means bigger and costlier burdens on banks in general, but that such costs “pale in comparison to the tragic costs of financial crises.”

Shadow Banks in Crosshairs

In her speech, Yellen called for tighter regulation of the growing non-bank or “shadow bank” sector, which includes money market funds, hedge funds, and crypto assets.

In the traditional banking sector, there are rules and measures in place to reduce the risk of bank runs. Alongside capital and liquidity requirements for banks, there are also deposit guarantees provided by the Federal Deposit Insurance Corporation (FDIC), which all reduce the likelihood that depositors will rush to withdraw their savings at the first sign of trouble.

“Yet the financial stability risks posed by money market and open-end funds have not been sufficiently addressed,” Yellen cautioned.

Money market funds, in particular, are vulnerable to runs and fire sales, Yellen said, in part due to the so-called “first-mover advantage” that established an incentive for investors to redeem “at the whiff of a problem.”

The first-mover advantage in context of money market funds means that the first redeemers can exit the fund at $1 per share, while those who wait may be subject to a reduced market value and so take a haircut. This creates an incentive for investors to redeem at the first sign of a problem, which can lead to runs and panic sales that pose a risk to financial stability.

During the 2008 financial crisis, expected losses on Lehman Brothers commercial paper led to a run on the $62 billion Reserve Primary Fund, which in turn sparked concerns about commercial paper issued by other banks and led to runs on other money market funds.

The first-mover advantage was also at play in March 2020 amid the pandemic shock, when a record $255 billion flowed out of bond mutual funds, Yellen noted.

This and other structural vulnerabilities regarding money market and open-end funds aren’t new, and the Securities and Exchange Commission (SEC) has, over the past two years, sought to address them through new regulatory proposals.

In particular, the SEC’s proposals would reduce the first-mover advantage and also require new liquidity management tools and mandate that these funds provide investors and the SEC with more comprehensive and timely information.

‘Negative Spiral of Margin Calls’

Hedge funds, meanwhile, which had nearly $10 trillion in gross assets in 2021, face leverage risks, Yellen said.

“Leverage can support economic growth, but excessive leverage is dangerous. It can add fuel to fire sales by triggering a negative spiral of margin calls and rapid asset liquidations,” she said. These fire sales can transmit stress to other market participants, including large, systemically important banks.

Post-crisis banking regulations have helped reduce the potential of spillovers to the banking system. But spillovers from these fire sales to other market participants remain a risk,” Yellen said.

Yellen said that, in an effort to address these risks, the multi-regulator Financial Stability Oversight Council’s restored Hedge Fund Working Group will continue to monitor them and develop policy recommendations.

Also on the Treasury secretary’s radar for systemic vulnerabilities that could seed a financial crisis are digital assets. Of particular concern are stablecoins, which could also be forced into asset fire sales in times of stress.

“A run on one stablecoin can lead to panicked runs on other stablecoins—causing even broader selloffs,” Yellen said, adding that Congress should pass legislation to establish a comprehensive prudential regulatory framework for stablecoin issuers and for other digital assets.

Yellen said the Biden administration is studying the potential for systemic risks from digital assets.

“And we are also exploring broader policy issues around the future of money and payments, including the possibility of a central bank digital currency,” Yellen said.

Meanwhile, global banking regulators have been discussing stepping up scrutiny of how risks from systemically important shadow banks could destabilize lenders.

Pablo Hernández de Cos, chair of the global Basel Committee, which writes bank capital rules that are applied across the world, said in a speech last week that additional guidance for managing shadow bank risks should be rolled out sometime this year.

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More Biden Madness: Asking Black Americans On Census if They Are Slave Descendants

By Mish Shedlock of MishTalk

Please note another ultra-Left mad proposal is underway: U.S. Considers Asking Black Americans on Census if They Are Slave Descendants

In a proposed update to how the government tracks Americans’ race and ethnicity, the Biden administration is asking the public for input on how it might go about differentiating Black people who are descendants of slaves in America from those whose families arrived more recently as immigrants from sub-Saharan Africa, the Caribbean or other countries.

Supporters of the change say one reason they are pushing it is to quantify who would be eligible to receive reparations for slavery should the government ever agree to pay them.

The Biden administration has proposed combining existing race and ethnicity questions so that “Hispanic or Latino” would no longer be a separate question, but instead would be one of several choices on the race question. It has also proposed creating a new race question category for Americans of Middle Eastern or North African heritage.

In its proposed rule on those broader changes, the administration asked whether the term “American Descendants of Slavery” or “American Freedmen” would be the best terms to describe the group. Some have suggested the term “Foundational Black Americans.”

The White House’s Office of Management and Budget, which is spearheading the race-category overhaul, declined to comment on the idea.

Last Living Slave

Sylvester Magee (claimed May 29, 1841 – October 15, 1971) claimed to be the last living former American slave. If this claim were true, Magee would not only have been the last surviving American Civil War veteran, but the oldest recorded person to have ever lived.

Assuming the claim is true, the last slave died 52 years ago. 

More realistically, assuming a very generous average age at death of 80 and not 130 years, nearly all slaves died 100 years or more ago. That means most of the direct descendants have passed as well.

Thus, we are talking about reparations to descendants of descendants of descendants all of which had the benefit of growing up in the greatest country on earth, with all of the associated benefits. 

Questions Abound

Let's give reparations to descendants of slaves, but let's not even call them slaves, let's call them "Foundational Black Americans,” muting the reason for the reparation.

And what percentage ancestry fits the bill? 5%, 10%, 50.01%? 

Does an 88% descendent get twice as much as a 44% descendent? Was he or she twice as harmed? Harmed at all? 

Do we have everyone take genetic tests or do we take people's word for it? If a boy can proclaim to be a girl, can I proclaim to be black? 

Does the process unite or further divide the United States? 

San Francisco Board Unanimously Supports $5 Million Per Person Reparation Payments

On March 17, I noted San Francisco Board Unanimously Supports $5 Million Per Person Reparation Payments

I did the math based on the number of households in San Francisco. The price tag would be $192 billion. The city budget is $13 billion.

But note the bill did not pass. It was "supported" unanimously. 

If the board actually approved this nonsense, I suspect everyone who voted in favor would immediately be voted out of office in special elections and the bill would be quickly struck down as unconstitutional.

Slave State Analysis

The 15 slave states were Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas, and Virginia.

Elsewhere, people who never owned slaves would make payments to people who never were slaves in states that never had slaves.

Political Race Baiting

One cannot undo a wrong of 200 years ago by taking money from people who had nothing to do with the problem and solve the wrong by giving money to people who were never harmed in process. 

Anyone sponsoring this idea knows reparations cannot possibly pass Congress. 

Expense bills need to garner 60 votes in the Senate. And many Democrats would not stomach a vote for it. Reparations would be  dead on arrival. 

Seriously Crazy?

The reparation idea seems seriously crazy. But is it? 

Team Biden knows reparations will never pass. The proposal is nothing but race-baiting, virtue-signaling meant to further divide the United States.

Blacks will not benefit from this. 

No one will benefit from this except perhaps the politicians who see a benefit in further dividing the county to enhance their political goals. 

This post originated at MishTalk.Com.

Addendum - Biden Declares Transgender Day of Visibility

“NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim March 31, 2023, as Transgender Day of Visibility.”

https://www.whitehouse.gov/briefing-room/presidential-actions/2023/03/30/a-proclamation-on-transgender-day-of-visibility/

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Lockheed's Bad Week Ends With F-35 Software Upgrade Delay, Termination Of Hypersonic Missile Program

Defense contractor Lockheed Martin Corp. has faced a challenging week. 

First, the US Air Force announced that the Lockheed Martin hypersonic weapons program would be terminated due to test failures. Now, the defense contractor faces significant software delays for its stealth fighter jets. Despite Washington elites showering the defense firm with significant amounts of taxpayer funds, its ability to develop and produce cutting-edge weaponry is encountering difficulties amid threats of global conflict

The latest news from Bloomberg highlights additional F-35 software delays by Lockheed for at least a year, making it 16 months behind schedule. The stealth fighter was set to receive a substantial technological upgrade, increasing processing power by 37 times and memory by 20 times, enabling it to carry more advanced weapons and enhance surveillance capabilities. 

Representative Rob Wittman, a Virginia Republican, first disclosed the delays could last until April 2024. He said Wednesday at a House hearing:

"We're learned that the late delivery is now impacting existing fighter squadrons" awaiting the upgraded F-35s.

"To quote a senior Air Force official I've met with on the subject: 'We're paying for great capability but we currently only have good capability,'" Wittman continued. 

"The F-35 is essentially a flying computer, with more than 8 million lines of code. The delayed software upgrade is known as TR-3," Bloomberg said. 

Air Force Lieutenant General Michael Schmidt, F-35 program manager, told a House Armed Services subcommittee headed by Wittman that the TR-3 delivery schedule "has been affected by delays associated with hardware and software development as well as testing of the Integrated Core Processor — the brains of TR-3."

"The key risks ahead of us are centered around maturity and stability of the final integrated software, flight test execution with an aging fleet of test aircraft and infrastructure and delivery of TR-3 hardware to the production line," Schmidt said. 

The first F-35 equipped with the new software upgrade took flight in January. Around that time, readers might remember, an F-35 crashed at the Naval Air Station Joint Reserve Base Fort Worth. It was suspected that the problem was related to the jet's engine.

Besides the stealth fighter jet having hundreds of software and hardware flaws that could impact combat missions, Lockheed was busy this week with another significant issue: the UASF terminated its AGM-183A Air-launched Rapid Response Weapon hypersonic missile program after test failures. 

Investors could care less about the mounting issues Lockheed has come across with its stealth jets and hypersonic missile. 

While the US is at the forefront of developing and deploying stealth fighters and soon stealth bombers, the world's largest military spender has yet to master hypersonic missile technology, a feat already achieved by Russia and China.

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BlackRock's Larry Fink And The New Post-ESG Realism

Authored by Rupert Darwall via RealClear Wire,

As regular as the turn of the seasons, each January sees Larry Fink, founder and CEO of BlackRock, the world’s largest asset manager, publish a lengthy letter on the state of the world and its implications for finance and investors. This year, January turned to February, and still no letter. Instead, February saw Tim Buckley, CEO of Vanguard, global number-two asset manager, give a groundbreaking interview explaining Vanguard’s decision late last year to quit the Net Zero Asset Managers (NZAM) initiative, which had been formed ahead of the 2021 Glasgow climate conference to reallocate capital in line with net zero emissions targets.

“It would be hubris to presume that we know the right strategy for the thousands of companies that Vanguard invests in,” Buckley told the Financial Times, adding that Vanguard was “not in the game of politics.” He warned investors against expecting superior returns from environmental, social, and governance (ESG) investing. “Our research indicates that ESG investing does not have any advantage over broad-based investing.”

Writing five days later in the Wall Street Journal, Terrence Keely, former BlackRock executive and author of Sustainable, zeroed in on the conflict of interest highlighted by Vanguard’s departure from NZAM and NZAM’s net zero goal. Swept along by climate-change fervor, an investment manager “can’t make such commitments without reneging on its fiduciary duties,” Keeley argued. Membership of an alliance committed to achieving net zero demands clairvoyance that no investment manager can promise. “If Mr. Buckley is right, then hundreds of other financial institutions with trillions of assets under management are wrong”—Keeley’s unstated implication being that if Vanguard is right, BlackRock is also wrong.

When it came earlier this month, Fink’s 2023 letter colored in the new investment climate adumbrated by BlackRock’s chief competitor. Whereas Fink’s 2021 letter to CEOs mentioned net zero 22 times and his 2022 letter, nine times, net zero was referred to only once this year—and then, only in passing (“European governments are also developing incentives to support the transition to a net zero economy and drive growth.”) Similarly, mentions of ESG have fallen from ten in 2021, to one last year, to none this year. How times have changed.

Two years ago, BlackRock made a blunt demand of the companies that it invests in: “We are asking”—that’s an instruction; you can hardly say no to the world’s largest investor—“companies to disclose a plan for how their business model will be compatible with a net zero economy.” This hasn’t been entirely walked back. BlackRock, Fink says, has been vocal in the past about companies disclosing how they plan to navigate the energy transition, but the tone now is softer and less vocal. It is not the role of an asset manager like BlackRock to engineer a particular outcome in the economy, Fink writes, and it’s not its place to tell companies what to do. Forswearing the clairvoyance that Keeley criticizes, Fink says that BlackRock doesn’t “know the ultimate path and timing of the transition,” a position that is not as crystalline as Buckley’s but is hard to reconcile with BlackRock’s continued membership of NZAM. Had this been BlackRock’s position two years ago, it would have been noisily condemned by climate activists and BlackRock would have been accused of sabotaging the Glasgow climate conference. So far, there has scarcely been a murmur. The world is quietly moving on from net zero.

So have BlackRock’s priorities. Whereas climate rates five mentions this year, compared with 27 two years ago, there are 122 mentions of clients—over four times the number in the BlackRock Global Executive Committee’s “Dear Clients” letter two years ago. Even more revealing is the change in the number of mentions of trust and fiduciary. There are 21 mentions of trust this year and one in the 2021 letter. That letter, billed “Net zero: a fiduciary approach,” contained only one other mention of fiduciary, a lapse that bears out Keeley’s argument on the incompatibility of imposing climate targets on asset portfolios and investment managers discharging their fiduciary duties.

Fink’s emphasis has changed, too. Two years ago, Fink compared climate change with the Covid pandemic as an existential threat exposing the fragility of society. This year, Russia’s invasion of Ukraine and heightened geopolitical tensions bring national and economic security “front and center.” In the short term, making supply chains more resilient is highly inflationary, Fink writes, and it’s fair to say that Fink doesn’t believe that the Inflation Reduction Act will reduce inflation. “I believe inflation is more likely to stay closer to 3.5 percent or 4 percent in the next few years.”

The crisis that Fink highlights in this year’s letter is not a climate crisis, but a silent crisis of people not saving and investing sufficiently for their retirement. Results of an Edelman Trust Barometer survey asking whether people thought their families would be better off in five years were at an all-time low in 24 out of 28 countries. “When people are afraid, they may save, but they won’t invest,” Fink observes. “We need leaders today who will give people reasons to be hopeful, who can articulate a vision for a brighter future.” Amen to that. It’s high time to end talk about existential crises to be addressed with extraordinarily costly measures that make people poorer, weaken national and economic security and, instead, turn attention to tackling soluble problems with positive solutions.

Rupert Darwall is a senior fellow of the RealClear Foundation and author of  Climate-Risk Disclosure: A Flimsy Pretext for a Green Power Grab.

Tyler Durden Thu, 03/30/2023 - 19:00
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Belief In Traditional American Values Plummeting: WSJ Poll

Authored by Eric Utter via American Thinker (emphasis ours),

According to a depressing new poll from The Wall Street Journal, belief in the importance of traditional American values has plummeted in the United States in recent decades.

The poll queried U.S. respondents about the importance of patriotism, religious faith, having children and other traditionally American values in their lives. Only 39% of Americans surveyed said their religious faith is very important to them, and just 38% said patriotism is very important.

The Journal compared those numbers to the results from the first time it ran the poll in 1998… when 62% of Americans said religion was very important to them, and 70% said patriotism was. And that was during the Clinton administration!

So, apparently, a majority of Americans no longer believe either religion or patriotism is important.

If that is the case, Democrats will never be out of power again. They never tire of dissing the country, its founders…and the concept of objective truth, morality…and God. (“Male and female He made them? Screw that, I decide if I am male or female…or any other gender, including ones I make up out of whole cloth!”)

Remarkably, the survey also purported to find that a plurality of Americans believe the U.S. has not gone far enough in promoting equality between men and women, accepting people who are gay, lesbian or bisexual, or in promoting racial and ethnic diversity in business and universities. If we go any further down that road, no one but members of the BIPOC LGBTQ Community will ever again be allowed to head a company or attend college.

The results of this poll, if they are reasonably accurate depictions of Americans’ values, or lack thereof, are disheartening to say the least. If, essentially, 23% of Americans lost their belief in a higher power, and 32% lost their belief in the goodness of their country in just the past 25 years…it is time to turn out the lights, as the party is unquestionably over.

The founders knew this was a distinct possibility at some point. John Adams famously observed, “Our Constitution was made only for a moral and religious People. It is wholly inadequate to the government of any other.” This is one reason “progressives” disdain them so. They disdain the very concepts of morality and religion, as they tend to put boundaries on people’s behavior. A God would be competition for them, and that they cannot countenance.

Conservatives, on the other hand, wish to conserve the best of the past, and pass on the accrued wisdom and best practices of millennia past. (We are not reflexively against change, such as voting Democrats out of office, potentially eliminating the National Endowment for the Arts, defunding National Public Radio, proposing school choice and voucher initiatives, or re-funding the police.)

It is no coincidence that testosterone and sperm levels have fallen during this same period. Or that IQs have declined, too. It all ties together. As Andrew Breitbart averred, it is true that politics is downstream from culture. And the current cultural cesspool feeds the stream that flows through—and poisons—our political class.

Objectively, this leads to one inescapable conclusion: sickeningly, the incessant lies that “progressive” Democrats—and their sycophantic lapdogs in the mainstream media—have told the American people…have been effective. Bullshit is viable.

Indoctrination works.

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While We're Obsessing About The Economy & The Fed, Society Is Unraveling

Authored by Charles Hugh Smith via OfTwoMinds blog,

The market and the government will continue to promote and support a neofeudal status quo until they are forced by society to restore the common good and opportunity.

Of the three primary dynamics of human endeavor--the market, government and society--we focus almost exclusively on the first two. Society is rarely considered as a force of its own. It is implicitly viewed as reactive to the market economy and government, the churning wake left as the market and government chart the course.

In other words, society is secondary to the economy and governance, the venue of fashions, trends, entertainment, culture wars, etc., fodder for media and social media, a reflection of what's happening in the market and government.

As I explain in my book Global Crisis, National Renewal, this is a misunderstanding of society's role as a force that changes the economy and governance in profound ways.

We give social transformation short shrift because it's not easy to study or understand. Social change is amorphous and doesn't lend itself to quantification like the market or the legal structures of government policy. We end up relying on snapshots such as opinion polls that are inherently limited in scope and accuracy. Respondents tend to give answers they they believe are expected or reflect their views of the moment. Other data is collected from groups that are self-selecting.

Despite these limitations, it's clear that American society is unraveling and undergoing profound changes that will eventually upend markets and governance. We will come to realize society is transforming markets and governance, not the other way around.

Charts of the stock market and economy in the 1960s do not reflect the social changes in values that made the 1960s so tumultuous and consequential. Three social movements--civil rights, the environment and women's rights--all changed the economy and governance in the 1970s, unleashing forces that continue to shape our economy and government to this day.

The market and government didn't lead these changes, social forces changed the market and government. The market and government were perfectly happy to maintain the status quo of rampant industrial pollution and systemic restrictions of civil rights. Society forced economic and political change: the government was forced to enact environmental regulations limiting pollution and industrial waste, and enact legislation removing barriers that enforced an oppressive, unjust, two-tier society and economy.

In the 1970s, these environmental, women's rights and civil rights advances forced on the market and government transformed the economy for the better. Women entered the workforce en masse and women and minorities gained access to institutions that that had previously excluded them. Environmental and efficiency regulations transformed the American economy and landscape from an industrial dumping ground to a much cleaner, more sustainable, more efficient and productive industrial base.

I discussed this recently in The Forgotten History of the 1970s and The 1970s: From Rotting Carcasses Floating in the River to Kayak Races.

Much work remains to be done, of course, but much has been accomplished by the citizenry concluding the status quo is no longer acceptable.

In my analysis, the nation's social fabric is unraveling due to the breakdown of civic virtue, social cohesion and the social contract. The dominance of finance (hyper-financialization) and corporate self-interest (hyper-globalization) has fatally undermined civic virtue, social cohesion and the social contract. Rather than the market serving society, society now serves the market and finance in a painfully obvious two-tiered neofeudal structure in which the few garner the vast majority of the wealth and political power.

Locking in vast private wealth is now the Prime Directive of the elite, an elite which in previous generations understood that every elite ultimately serves at the behest of those they rule (i.e. consent of the governed), and so the elite must apply some of their wealth and power to pursue the common good rather than their own self-interest.

Soaring wealth-income inequality leads to vast concentration of political power. "The people" rule in name only. Any attempt to end the two-tiered neofeudal structure of our economy at the ballot box is futile.

As for the social contract of equal opportunity for all, in the real world, the rungs in the ladder of social mobility have been broken. Those who bought homes and assets a generation or two ago have acquired wealth in a credit-asset bubble economy, while those who borrowed a fortune for a college degree find the value is uncertain or marginal in all but the top-tier of credentials--and connections still matter.

The net result is people are dropping out, opting out or burning out. This is the result of what I call social defeat: the odds are now stacked against all but the super-achievers and the well-connected. Given the instability and inequality of the financialized, globalized "market economy" (heh), a family and home are out of reach financially for many, so they give up. Others see their hard-won gains wiped out by medical expenses (the leading cause of household bankruptcies) or a collapse in the speculative bubble-du-jour. We see the same trends in stagnant economies elsewhere (Japan, for instance): the decline of marriage, family and having children and the abandonment of social / community ties.

As this Wall Street Journal poll reveals, the traditional forces of social cohesion are collapsing before our eyes. As Peter Turchin has explained, social cycles of integration and disintegration occur every 50 years or so. In integrative phases, people find reasons to cooperate. In disintegrative phases, people find reasons to disagree and fragment into divisive, polarized camps. Clearly, we're well into a disintegrative phase, and what could bring us together is not even visible.

America Pulls Back From Values That Once Defined It, WSJ-NORC Poll Finds (WSJ.com)

The rising emphasis on money reflects the insecurity and instability that characterize the economy. If history teaches us anything, it's that piling up private stashes of wealth can't buy social cohesion, restore the social contract or rebuild social ties. Speculative gain is the ultimate false god. The belief that if we all barricade our own private wealth, everything will be fine is the acme of social dissolution.

We have a great opportunity for national renewal, but there is precious little in the market or governance that offers common ground. The common ground must be found in social changes in what we value and what is no longer acceptable. The market and the government will continue to promote and support a neofeudal status quo until they are forced by society to restore the common good and opportunity.

*  *  *

My new book is now available at a 10% discount ($8.95 ebook, $18 print): Self-Reliance in the 21st CenturyRead the first chapter for free (PDF)

Become a $1/month patron of my work via patreon.com.

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The Great Food Reset Has Begun

Authored by Thomas Fazi via UnHerd.com,

We all lose from the global war on farmers...

France is in flames. Israel is erupting. America is facing a second January 6.

In the Netherlands, however, the political establishment is reeling from an entirely different type of protest — one that, perhaps more than any other raging today, threatens to destabilise the global order.

The victory of the Farmer-Citizen Movement (BBB) in the recent provincial elections represents an extraordinary result for an anti-establishment party that was formed just over three years ago. But then again, these are not ordinary times.

The BBB grew out of the mass demonstrations against the Dutch government’s proposal to cut nitrogen emissions by 50% in the country’s farming sector by 2030 — a target designed to comply with the European Union’s emission-reduction rules. While large farming companies have the means to meet these goals — by using less nitrogen fertiliser and reducing the number of their livestock — smaller, often family-owned farms would be forced to sell or shutter. Indeed, according to a heavily redacted European Commission document, this is precisely the strategy’s goal: “extensifying agriculture, notably through buying out or terminating farms, with the aim of reducing livestock”; this would “first be on a voluntary basis, but mandatory buyout is not excluded if necessary”.

It is no surprise, then, that the plans sparked massive protests by farmers, who see it as a direct attack on their livelihoods, or that the BBB’s slogan — “No Farms, No Food” — clearly resonated with voters. But aside from concerns about the impact of the measure on the country’s food security, and on a centuries-old rural way of life integral to Dutch national identity, the rationale behind this drastic measure is also questionable. Agriculture currently accounts for almost half of the country’s output of carbon dioxide, yet the Netherlands is responsible for less than 0.4% of the world’s emissions. No wonder many Dutch fail to see how such negligible returns justify the complete overhaul of the country’s farming sector, which is already considered one of the most sustainable in the world: over the past two decades, water dependence for key crops has been reduced by as much as 90%, and the use of chemical pesticides in greenhouses has been almost completely eliminated.

Farmers also point out that the consequences of the nitrogen cut would extend well beyond the Netherlands. The country, after all, is Europe’s largest exporter of meat and the second-largest agricultural exporter in the world, just behind the United States — in other words, the plan would cause food exports to collapse at a time when the world is already facing a food and resource shortage. We already know what this might look like. A similar ban on nitrogen fertiliser was conducted in Sri Lanka last year, with disastrous consequences: it caused an artificial food shortage that plunged nearly two million Sri Lankans into poverty, leading to an uprising that toppled the government.

Given the irrational nature of the policy, many protesting farmers believe it can’t simply be blamed on the urbanite “green elites” currently running the Dutch government. They suggest one of the underlying reasons for the move is to squeeze small farmers from the market, allowing them to be bought out by multinational agribusiness giants who recognise the immense value of the country’s land — not only is it highly fertile, but it is also strategically located with easy access to the north Atlantic coast (Rotterdam is the largest port in Europe). They also point out that prime minister Rutte is an Agenda Contributor of the World Economic Forum, which is well known for being corporate-driven, while his finance minister and Minister of Social Affairs and Employment are also tied to the body.

The struggle playing out in the Netherlands would seem to be part of a much bigger game that seeks to “reset” the international food system. Similar measures are currently being introduced or considered in several other European countries, including Belgium, Germany, Ireland and Britain (where the Government is encouraging traditional farmers to leave the industry to free up land for new “sustainable” farmers). As the second-largest contributor to greenhouse gas emissions, after the energy sector, agriculture has naturally ended up in the crosshairs of Net Zero advocates — that is, virtually all major international and global organisations. The solution, we are told, is “sustainable agriculture” — one of the UN’s 17 Sustainable Development Goals (SDGs), which form their “Agenda 2030”.

This issue has now been pushed to the top of the global agenda. Last November’s G20 meeting in Bali called for “an accelerated transformation towards sustainable and resilient agriculture and food systems and supply chains” to “ensure that food systems better contribute to adaptation and mitigation to climate change”. Just a few days later, in Egypt, the COP27 annual Green Agenda Climate Summit launched its initiative aimed at promoting “a shift towards sustainable, climate-resilient, healthy diets”. Within a year, its Food and Agriculture Organization aims to launch a “roadmap” for reducing greenhouse emissions in the agricultural sector.

The endgame is hinted at in several other UN documents: reducing nitrogen use and global livestock production, lowering meat consumption, and promoting more “sustainable” sources of protein, such as plant-based or lab-grown products, and even insects. The United Nations Environment Programme, for example, has stated that global meat and dairy consumption must be reduced by 50% by 2050. Other international and multilateral organisation have presented their own plans for transforming the global food system. The EU’s Farm to Fork strategy “aims to accelerate our transition to a sustainable food system”. Meanwhile, the World Bank, in its climate change action plan for 2021-2025, says that 35% of the bank’s total funding during this period will be devoted to transforming agriculture and other key systems to deal with climate change.

Alongside these intergovernmental and multilateral bodies, a vast network of “stakeholders” is now devoted to the “greening” of agriculture and food production — private foundations, public-private partnerships, NGOs and corporations. Reset the Table, a 2020 Rockefeller Foundation report, called for moving away from a “focus on maximising shareholder returns” to “a more equitable system focused on fair returns and benefits to all stakeholders”. This may sound like a good idea, until one considers that “stakeholder capitalism” is a concept heavily promoted by the World Economic Forum, which represents the interests of the largest and most powerful corporations on the planet.

The Rockefeller Foundation has very close ties to the WEF, which is itself encouraging farmers to embrace “climate-smart” methods in order to make the “transition to net-zero, nature-positive food systems by 2030”. The WEF is also a big believer in the need to drastically reduce cattle farming and meat consumption and switch to “alternative proteins”.

Arguably the most influential public-private organisation specifically “dedicated to transforming our global food system” is the EAT-Lancet Commission, which is largely modelled around the Davos “multistakeholderist” approach. This is based on the premise that global policymaking should be shaped by a wide range of unelected “stakeholders”, such as academic institutions and multinational corporations, working hand-in-glove with governments. This network, cofounded by the Wellcome Trust, consists of UN agencies, world-leading universities, and corporations such as Google and Nestlé. EAT’s founder and president, Gunhild Stordalen, a Norwegian philanthropist who is married to one of the country’s richest men, has described her intention to organise a “Davos for food”.

EAT’s work was initially supported by the World Health Organization, but in 2019 the WHO withdrew its endorsement after Gian Lorenzo Cornado, Italy’s ambassador and permanent representative to the UN in Geneva, questioned the scientific basis for the dietary regime being pushed by EAT — which is focused on promoting plant-based foods and excluding meat and other animal-based foods. Cornado argued that “a standard diet for the whole planet” that ignores age, sex, health and eating habits “has no scientific justification at all” and “would mean the destruction of millenary healthy traditional diets which are a full part of the cultural heritage and social harmony in many nations”.

Perhaps more important, said Cornado, is the fact that the dietary regime advised by the commission “is also nutritionally deficient and therefore dangerous to human health” and “would certainly lead to economic depression, especially in developing countries”. He also raised concerns that “the total or nearly total elimination of foods of animal origin” would destroy cattle farming and many other activities related to the production of meat and dairy products. Despite these concerns, raised by a leading member of the world’s top public health body and shared by a network representing 200 million small-scale farmers in 81 countries, EAT continues to play a central role in the global push for the radical transformation of food systems. At the 2021 United Nations Food Systems Summit, which originated from a partnership between the WEF and the UN Secretary-General, Stordalen was given a leading role.

This complete blurring of the boundaries between the public and the private-corporate spheres in the agricultural and food sectors is also happening in other areas — with Bill Gates standing somewhere in the middle. Alongside healthcare, agriculture is the main focus of the Bill and Melinda Gates Foundation, which finances several initiatives whose stated aim is to increase food security and promote sustainable farming, such as Gates Ag One, CGIAR and the Alliance for a Green Revolution in Africa. Civil society organisations, however, have accused the Foundation of using its influence to promote multinational corporate interests in the Global South and to push for ineffective (but very profitable) high-tech solutions which have largely failed to increase global food production. Nor are Gates’s “sustainable” agricultural activities limited to developing countries. As well as investing in plant-based protein companies, such as Beyond Meat and Impossible Foods, Gates has been buying huge amounts of farmland in the US, to the point of becoming the biggest private owner of farmland in the country.

The problem with the globalist trend he embodies is obvious: ultimately, small and medium-scale farming is more sustainable than large-scale industrial farming, as it is typically associated with greater biodiversity and the protection of landscape features. Small farms also provide a whole range of other public goods: they help to maintain lively rural and remote areas, preserve regional identities, and offer employment in regions with fewer job opportunities. But most importantly, small farms feed the world. A 2017 study found that the “peasant food web” — the diverse network of small-scale producers disconnected from Big Agriculture — feeds more than half of the world’s population using only 25% of the world’s agricultural resources.

Traditional farming, though, is suffering an unprecedented attack. Small and medium-scale farmers are being subjected to social and economic conditions in which they simply cannot survive. Peasant farms are disappearing at an alarming rate across Europe and other regions, to the benefit of the world’s food oligarchs — and all this is being done in the name of sustainability. At a time when almost a billion people around the world are still affected by hunger, the lesson of the Dutch farmers could not be more urgent, or inspiring. For now, at least, there is still time to resist the Great Food Reset.

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