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Technocensorship: When Corporations Serve As A Front For Government Censors

Authored by John & Nisha Whitehead via The Rutherford Institute,

“Once a government is committed to the principle of silencing the voice of opposition, it has only one way to go, and that is down the path of increasingly repressive measures, until it becomes a source of terror to all its citizens and creates a country where everyone lives in fear. We must, therefore, be on our guard against extremists who urge us to adopt police state measures. Such persons advocate breaking down the guarantees of the Bill of Rights in order to get at the communists. They forget that if the Bill of Rights were to be broken down, all groups, even the most conservative, would be in danger from the arbitrary power of government.”

- Harry S. Truman, Special Message to the Congress on the Internal Security of the United States (August 8, 1950)

Nothing good can come from allowing the government to sidestep the Constitution.

Unfortunately, the government has become an expert at disregarding constitutional roadblocks intended to protect the rights of the citizenry.

When these end-runs don’t suffice, the government hides behind the covert, clandestine, classified language of national security; or obfuscates, complicates, stymies, and bamboozles; or creates manufactured diversions to keep the citizenry in the dark; or works through private third parties not traditionally bound by the Constitution.

This last tactic is increasingly how the government gets away with butchering our freedoms, by having its corporate partners serve as a front for its nefarious deeds.

This is how the police state has managed to carry out an illegal secret dragnet surveillance program on the American people over the course of multiple presidential administrations.

Relying on a set of privacy loopholes, the White House (under Presidents Obama, Trump and now Biden) has been sidestepping the Fourth Amendment by paying AT&T to allow federal, state, and local law enforcement to access—without a warrant—the phone records of Americans who are not suspected of a crime.

The government used a similar playbook to get around the First Amendment, packaged as an effort to control the spread of speculative or false information in the name of national security.

As the House Judiciary Select Subcommittee on Weaponization of the Federal Government revealed, the Biden administration worked in tandem with social media companies to censor content related to COVID-19, including humorous jokes, credible information and so-called disinformation.

Likening the government’s heavy-handed attempts to pressure social media companies to suppress content critical of COVID vaccines or the election to “an almost dystopian scenario,” Judge Terry Doughty warned that “the United States Government seems to have assumed a role similar to an Orwellian ‘Ministry of Truth.’

Restricting access to social media has become a popular means of internet censorship.

Dare to voice politically incorrect views in anything louder than a whisper on social media and you might find yourself suspended on Twitter, shut out of Facebook, and banned across various social media platforms. This authoritarian intolerance masquerading as tolerance, civility and love is what comedian George Carlin referred to as “fascism pretending to be manners.”

Social media censorship runs the gamut from content blocking, throttling, and filtering to lockouts, shutdowns, shadow banning and de-platforming.

In fact, these tactics are at the heart of several critical cases before the U.S. Supreme Court over who gets to control, regulate or remove what content is shared on the internet: the individual, corporate censors or the government.

Yet what those who typically champion the right of corporations to be free from government meddling get wrong about these cases is that there can be no free speech when corporations such as Facebook, Google or YouTube become a front for—or extensions of—government censors.

This is the very definition of technocensorship.

On paper—under the First Amendment, at least—we are technically free to speak.

In reality, however, we are now only as free to speak as a government official—or corporate entities such as Facebook, Google or YouTube—may allow.

Clothed in tyrannical self-righteousness, technocensorship is powered by technological behemoths (both corporate and governmental) working in tandem to achieve a common goal: to muzzle, silence and altogether eradicate any speech that runs afoul of the government’s own approved narrative.

This is political correctness taken to its most chilling and oppressive extreme.

This authoritarian impulse to censor and silence “dangerous” speech masquerading as tolerance, civility and a concern for safety (what comedian George Carlin referred to as “fascism pretending to be manners”) is the end result of a politically correct culture that has become radicalized, institutionalized and tyrannical.

You see, the government is not protecting us from “dangerous” disinformation campaigns. It is laying the groundwork to insulate us from “dangerous” ideas that might cause us to think for ourselves and, in so doing, challenge the power elite’s stranglehold over our lives.

Thus far, the tech giants have been able to sidestep the First Amendment by virtue of their non-governmental status, but it’s a dubious distinction at best when they are marching in lockstep with the government’s dictates.

As Philip Hamburger and Jenin Younes write for The Wall Street Journal: “The First Amendment prohibits the government from ‘abridging the freedom of speech.’ Supreme Court doctrine makes clear that government can’t constitutionally evade the amendment by working through private companies.”

It remains to be seen whether the Supreme Court can see itself clear to recognizing that censorship by social media companies acting at the behest of the government runs afoul of the First Amendment.

Bottom line: either we believe in free speech or we don’t.

The answer to the political, legal and moral challenges of our day should always be more speech, not less.

Any individual or group—prominent or not—who is censored, silenced and made to disappear from Facebook, Twitter, YouTube and Instagram for voicing ideas that are deemed politically incorrect, hateful, dangerous or conspiratorial should be cause for alarm across the entire political spectrum.

To ignore the long-term ramifications of such censorship is dangerously naïve, because whatever powers the government and its corporate operatives are allowed to claim now will eventually be used against the populace at large.

These social shunning tactics borrow heavily from the mind control tactics used by authoritarian cults as a means of controlling its members. As Dr. Steven Hassan writes in Psychology Today: “By ordering members to be cut off, they can no longer participate. Information and sharing of thoughts, feelings, and experiences are stifled. Thought-stopping and use of loaded terms keep a person constrained into a black-and-white, all-or-nothing world. This controls members through fear and guilt.”

This mind control can take many forms, but the end result is an enslaved, compliant populace incapable of challenging tyranny.

As Rod Serling, creator of The Twilight Zone, once observed, “We’re developing a new citizenry, one that will be very selective about cereals and automobiles, but won’t be able to think.”

The problem is that we’ve allowed ourselves to be persuaded that we need someone else to think and speak for us, and we’ve bought into the idea that we need the government and its corporate partners to shield us from that which is ugly or upsetting or mean. The result is a society in which we’ve stopped debating among ourselves, stopped thinking for ourselves, and stopped believing that we can fix our own problems and resolve our own differences.

In short, we have reduced ourselves to a largely silent, passive, polarized populace incapable of working through our own problems and reliant on the government to protect us from our fears.

As Nat Hentoff, that inveterate champion of the First Amendment, once observed, “The quintessential difference between a free nation, as we profess to be, and a totalitarian state, is that here everyone, including a foe of democracy, has the right to speak his mind.”

What this means is championing the free speech rights of those with whom we might disagree.

That’s why James Madison, the author of the Bill of Rights, fought for a First Amendment that protected the “minority” against the majority, ensuring that even in the face of overwhelming pressure, a minority of one—even one who espouses distasteful viewpoints—would still have the right to speak freely, pray freely, assemble freely, challenge the government freely, and broadcast his views in the press freely. He understood that freedom for those in the unpopular minority constitutes the ultimate tolerance in a free society.

The government has no tolerance for freedom or free speech of any kind that challenges its chokehold on power.

At some point or another, depending on how the government and its corporate allies define what constitutes “disinformation,” “hate” or “extremism, “we the people” might all be considered guilty of some thought crime or speech transgression or other.

Yet as I make clear in my book Battlefield America: The War on the American People and in its fictional counterpart The Erik Blair Diaries, it’s a slippery slope from censoring so-called illegitimate ideas to silencing truth.

Eventually, as George Orwell predicted, telling the truth will become a revolutionary act.

Ultimately, the government’s war on free speech—and that’s exactly what it is—is a war that is driven by a government fearful of its people.

As President John F. Kennedy observed, “[A] nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people.”

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Leap-Of-Faith: Feb Favored Bitcoin-Bulls, Bond-Bears, AI-Advancers, & Anti-Obesity Advocates

Overall February was great for crypto, good for stocks, bad for bonds, and ugly for rate-cut doves.

Endlessly hawkish FedSpeak (confirmed by the FOMC Minutes), and troublingly sticky inflation prints (hard and soft) sent 2024 rate-cut expectations reeling from over 6 cuts (154bps) at the start of the month to less than 4 cuts (84bps) at the end, as better-than-soft-landing data spoiled the "rescue-me" fantasy so many had for The Fed...

Source: Bloomberg

...and expectations for the start of rate-cuts is getting pushed further back with July now moist likely. Quite shift in February from 60% odds of a March-cut to basically 0 and a May-cut fully priced to just 18% now...

Source: Bloomberg

The market is suddenly aware that this disinflationary path may not be as easy as the world and their pet rabbit was hyping at the start of the year. Breakevens have soared higher this year with February pushing 5Y BEs back up near their highest since April 2023...

Source: Bloomberg

And small businesses are obviously price-gouging (well, that's what President Biden told us anyway)...

We are not amused...

But stocks didn't care...

Source: Bloomberg

Inflation and AI (well CPI and NVDA) were all that mattered really... All the US Majors were higher in February, led by Nasdaq and S&P as The Dow lagged (but still closed Feb to the upside).

Source: Bloomberg

The algos did everything they could to close the Nasdaq Composite above 16,057 - its prior record closing high...

Fun fact:

Consumer Discretionary and Industrial outperformed in February while Utes lagged (but closed higher on the month)...

Source: Bloomberg

But as Goldman's Chris Hussey explained, there is some heavy-lifting ahead if stocks are to withstand this:

"For now, markets have sided in favor of the better growth over the higher rates when considering stock valuations -- a product perhaps of just how much skepticism in the US growth trajectory remained a month-plus into 2024.

But as we move forward, the ability of this better growth narrative to continue to surprise to the upside may be critical to keeping stocks working (at least from a top-down standpoint)"

Anti-Obesity drug-related stocks massively outperformed In Feb...

Source: Bloomberg

And while AI-related stocks also outperformed, they lagged the GLP-1 Analogs...

Source: Bloomberg

But AI didn't float all boats as while NVDA rose 29% in Feb, GOOGL dropped 2% as Gemini's launch was a massive woke embarrassment. AAPL was alos down 2% in Feb (abandoned its EV car idea after decades)...

Source: Bloomberg

MAG7 stocks overall were up over 7% on the month but really have gone nowhere since the initial thrust into the month...

Source: Bloomberg

MSFT overtook AAPL and remains the only $3TN market cap name while NVDA over took GOOGL and AMZN right up against $2TN market cap...

Source: Bloomberg

And all that exuberantly-added market cap means stocks are anything but cheap...

Source: Bloomberg

As rate-cut expectations fell and better-than-soft-landing data showed up (and stickier than expected inflation data), so bonds were battered in February with the short-end monkey-hammered over 40bps higher in yield while the long-end rose around 20bps...

Source: Bloomberg

Which means the yield curve (2s30s) is bear-flattening significantly...

Source: Bloomberg

The dollar was up for the second straight month in a row in Feb

Source: Bloomberg

It was a big month for crypto with Ethereum outperforming Bitcoin (+49% vs +45%)...

Source: Bloomberg

Bitcoin traded just shy of $64,000...

Source: Bloomberg

And Ethereum traded just shy of $3500...

Source: Bloomberg

Flows into Bitcoin ETFs soared in February (+$5.9BN) with IBIT inflows dominating...

Source: Bloomberg

...and overall since inception, Bitcoin ETFs have seen +$7.4BN flows while Gold ETFs have seen $2.9BN outflows...

But, despite the outflows, gold managed to end February unchanged. Oil was up while NatGas was ugly...

Source: Bloomberg

Oil prices bounced off January's close four times this month, with WTI testing up to $79...

Source: Bloomberg

Finally, the better-than-expected macro data in February should not have been a surprise as we had been warning about the renaissance of 'animal spirits 2.0' due to the lagged effect of the massive loosening of financial conditions that occurred in Q4...

Source: Bloomberg

But, be careful, as that tailwind is set to run out right as the Ides of March strike, which would line up rather ominously with the dot-com peak analog...

Source: Bloomberg

Will The Fed allow a market crash in an election year? Or close to the election will The Fed wait for its first (completely apolitical) cut?

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Stocks Slip As Crypto Rips & Dips On Record ETF Volumes

Well that escalated... and de-escalated quickly... but in the end, bitcoin was best...

Bitcoin rallied a stunning 13% to with a few bucks of $64,000 before a wave of selling pressure appeared (seemingly from perp futures) and triggered Coinbase chaos, wiping out $5,000 of the gains before bouncing back up again. By the end of the US equity trading session, bitcoin was at $60,000, still up 6%...

Source: Bloomberg

Near record highs intraday...

Source: Bloomberg

ETF net (in)flows have accelerated remarkably in recent days...

Source: Bloomberg

And BTC ETF volumes have exploded, driven mostly by trading activity in IBIT...

Source: Bloomberg

Ethereum had a huge day, ripping up to almost $3500, before it all fell apart and ended unch-ish...

Source: Bloomberg

ETH has notably lagged BTC in recent days after surging up (relatively speaking) to its highest since the launch of the BTC ETFS...

Source: Bloomberg

Away from crypto, stocks were lower led by Small Caps and Nasdaq today. Most of the selling pressure hit at the European open (and we bounced back into the European close), but those bounce gains wouldn't hold. The Dow ended the day as the least ugly horse in the glue factory...

But skews are back near record lows as there remains no fear...

Source: Bloomberg

Treasuries were bid across the curve with the short-end outperforming (2Y -5bps, 30Y -2bps). That pulled 2Y and 5Y yields lower on the week...

Source: Bloomberg

This prompted some bull-steepening in the 2s30s curve...

Source: Bloomberg

The dollar jumped to one-week highs after drifting lower for a few days...

Source: Bloomberg

Gold dipped early then ripped to close green...

Source: Bloomberg

Oil prices ended lower on the day after surging above $79.50 (WTI) before sliding back after the DOE print...

Finally, about that 'strong consumer' - The Credit Managers' survey shows that the rate of rejections for credit applications and the number of accounts moved to 'collections' is surging back to near GFC levels...

Source: Bloomberg

How the hell will all of these struggling Americans afford the $20 a month for a chatbot to tell them that the founding fathers were fat, black, lesbians?

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FAA Finds 17 Corrective Actions For SpaceX After Second Starship Explosion

The US Federal Aviation Administration has completed its investigation into the second flight of SpaceX's Starship rocket, which ended in an explosion in late 2023. Following the investigation, the space exploration company and the FAA agreed on new procedures before the next launch. 

SpaceX pinpointed the root causes of the explosion, which were then acknowledged and accepted by the FAA. These corrective measures include hardware redesigns, updated control system modeling, re-evaluation of engine analyses, updated engine control algorithms, operational changes, flammability analysis updates, and installation of additional fire protection. 

"Prior to the next launch, SpaceX must implement all corrective actions and receive a license modification from the FAA that addresses all safety, environmental and other applicable regulatory requirements," regulators wrote in an emailed statement. 

"The FAA is evaluating SpaceX's license modification request and expects SpaceX to submit additional required information before a final determination can be made," they added.

To recap on the Starship mishap during the mid-November launch that prompted an FAA investigation, Houston Chronicle explains here: 

During the launch on Nov. 18 that sparked the review, all 33 of the Super Heavy rocket engines ignited and burned for their full duration. Then the rocket separated from the Starship spacecraft using a new hot-stage technique that fired Starship's engines while it was still attached to the rocket.

Super Heavy was supposed to land in the Gulf of Mexico. It ignited 13 of its 33 engines to return for the landing, but several engines began shutting down and one engine "failed energetically," SpaceX said. The booster ultimately blew up more than three and a half minutes into the flight when the rocket was about 55 miles above the Gulf of Mexico, SpaceX said in an update released Monday.

Meanwhile, the Starship spacecraft successfully lit its six engines and began traveling toward its intended landing site off the coast of Hawaii. It began venting liquid oxygen propellant as planned, but a leak developed that led to a fire. Communications were lost between the spacecraft's flight computers. 

The onboard flight termination system blew up the spacecraft when it was roughly 93 miles above the Earth, according to SpaceX.

Before the next launch, SpaceX must implement corrective actions and receive a license modification from the FAA. 

"More Starships are ready to fly, putting flight hardware in a flight environment to learn as quickly as possible," the company said. 

Some X users speculate the next Starship launch could happen as soon as next month. As noted above, SpaceX would have to receive the launch license first. 

Earlier this month, Elon Musk posted an image of the Starship stack at SpaceX facilities in Boca Chica, Texas. 

Is Jeff Bezos still in the rocket game? There is very little news coming from Blue Origin.

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'Stop The Weapons, Start The Talks': Third Year Of Ukraine War Begins

Authored by Jon Queally via Common Dreams,

Two years of fighting after Russia's brutal 2022 invasion of Ukraine has the world asking what peace between the two nations can possibly look like and what is the possible path to end a war that has left a nation shredded and hundreds of thousands dead.

Calling the full-scale Russian invasion of Ukraine a violation of the UN Charter and international law, UN Secretary-General António Guterres on Friday said the war has created "an open wound at the heart of Europe" that only diplomacy could fix. "It is high time for peace—a just peace, based on the UN Charter, international law, and General Assembly resolutions," declared Guterres.

Image: Shutterstock

The Secretary-General condemned the invasion as a "dangerous precedent" set by Russian President Vladimir Putin, who has claimed eastern regions of Ukraine rightfully belong to Russia and justified the war as necessary to block the ongoing expansion of NATO that betrayed earlier promises by the military alliance.

As the war enters its third year, foreign policy experts argue that the current standstill—in which Russia has realized it cannot possibly take the whole country by force and Ukraine is unlikely to have the might to push the invading army back over the border—proves there is no military solution.

In a brief published to mark the two-year anniversary of the war's start, Quincy Institute for Responsible Statecrafts analysts Anatol Lieven and George Beebe argue that the people of Ukraine have much more to win than lose by seeking a diplomatic solution.

"Conventional wisdom holds that a negotiated end to the Ukraine war is neither possible nor desirable," Lieven and Beebe's paper states. "This belief is false."

The pair war that resistance to diplomacy is "also extremely dangerous for Ukraine"s future because the bloody war—in which over 10,000 Ukrainian civilians have been killed and more than 5 million displaced—"is not trending toward a stable stalemate, but toward Ukraine’s eventual collapse."

The New York Times reports Sunday that while Ukrainians are "weary" of the bloody war that has taken so much from them, "but ever determined to repel the invaders."

The Times interviewed Dr. Maryna Prokopenko, a surgeon at Kharkiv Regional Hospital, who said the battered bodies and suffering she sees inform her desire for "this war to end," but said ceding territory to the Russians was unacceptable.

Via Quincy Institute for Responsible Statecraft

But with the Ukrainian military "outgunned and outnumbered against a more powerful opponent," as the Associated Press reports—and additional foreign military assistance stalled in the U.S. Congress and by other allies in Europe due to domestic concerns about prolonging support for a war with no end in sight—the idea of a negotiated settlement has deep appeal for many.

"As things stand, neither side has won. Neither side has lost. Neither side is anywhere near giving up. And both sides have pretty much exhausted the manpower and equipment that they started the war with," claimed Richard Barrons, a retired British general and current co-chair for Universal Defence & Security Solutions, a military consultancy firm.

While militarists argue the U.S. and other NATO countries must double-down on their support for Ukraine to combat Russian aggression, critics of endless war say it is Ukranian civilians paying the biggest price over the refusal to forge a negotiated settlement leading to a peace agreement to end the war.

"To resolve the ongoing crisis, diplomatic engagement through negotiations and mediation needs to be given more consideration," says Omotola Adeyoju Ilesanmi, a senior research fellow at the Nigerian Institute of International Affairs, in a memo this week. "Further, it ought to take precedence over other inefficient measures, such as using military force to accomplish political goals."

The U.S.-based peace group CodePink issued a statement Friday similarly arguing that two years of war have proved that there is no military solution and that another $61 billion in U.S. military assistance—mostly in the form of more bombs, missiles, and other armaments—would not do more than the $113 billion already spent overall on assistance.

"Prolonging the war in Ukraine will not stabilize the region nor bring peace to Ukrainians; only peace talks and diplomacy can do that," the group said. "Stop the weapons. Start the talks."

Contrary to conventional wisdom, Lieven and Beebe argue in their assessment that the United States and other powerful allies to Ukraine have more leverage now to bring Russia to the negotiating table even as the Ukraine army appears weaker than at previous intervals in the war. As they write:

Russia cannot conquer, let alone govern, the majority of Ukraine, nor can Russia secure itself against the ongoing threats of Ukrainian sabotage or potential NATO strikes absent a costly permanent military buildup that would undermine its civilian economy. Reducing the deep dependence on China created by the invasion will also sooner or later require Russia to seek some form of détente with the West.

As a result, the United States has significant leverage for bringing Russia to the table and forging verifiable agreements to end the fighting. But this leverage will diminish over time. The United States should therefore quickly challenge Putin to make good on his insistence that Russia is willing to negotiate by publicly supporting calls from China, Brazil, and other key Global South actors for talks to end the war.

In a recent column promoting a new kind of engagement by the U.S. government, Lauren Evans, program assistant for peacebuilding at the Friends Committee on National Legislation (FCNL), mourned the "devastating conflict and catastrophic harm to civilians" across Ukraine over the last two years and said the "situation cannot improve un the war stops."

"While the U.S. cannot and should not dictate terms of peace," wrote Evans, "it can be a better champion of a diplomatic resolution and help envision a new security paradigm in Europe based on the principles of shared security, not the threat of force."

Those pushing for the diplomatic path acknowledge it will be a hard path, but say the alternative of war cannot be the permanent choice. "Even if the United States embarks seriously on an effort to create a path to negotiations, the process of compromise will not be easy or simple," Lieven and Beebe conclude. "But the alternatives—for Ukraine and the world—will be far worse."

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Crypto Rips, Mag7 Dips, As Super-Short-Squeeze Sends Small-Caps Soaring

Horrible housing data and anecdotally awful manufacturing signals from Texas were the only macro of note as the world awaits an avalanche of FedSpeak and the latest core PCE print later in the week.

Rate-cut expectations continue to slide (June is now a 50-50 for the start and 2024 now pricing in only 3 cuts)...

Source: Bloomberg

Two ugly bond auctions (2Y and 5Y) helped spur Treasury yields higher (as we note that February's damage has come amid huge supply and a record $153 BN corporate bond sales). Yields were up around 3bps across the curve, erasing much of Friday's decline in yields (especially at the short-end)...

Source: Bloomberg

Bitcoin soared up above $54,500 today, the highest since early Dec 2021...

Source: Bloomberg

As net inflows into BTC ETFs re-accelerated (and GBTC outflows slowed to a trickle)....

Source: Bloomberg

Ethereum also soared, getting within a tick or two of $3200, its highest since April 2022...

Source: Bloomberg

Mag7 stocks continued to limp lower after NVDA's exuberance last week...

Source: Bloomberg

But 'most shorted' stocks were aggressively squeezed up to pre-President's Day highs today...

Source: Bloomberg

Which helped pull Small Caps up today and lead the pack as S&P, Dow, and Nasdaq all faded into the red in the last hour...

The dollar was very quiet today once again ending practically unchanged for the second day in a row...

Source: Bloomberg

Gold closed marginally lower on the day, but bounced intraday to hold its 50DMA...

Source: Bloomberg

But oil surged, with WTI testing $78 intraday, erasing Friday's losses...

Source: Bloomberg

Finally, NVDA was only able to add a de minimum 0.6% today, losing momentum three times intraday and completing an inside day (lower high and higher low)...

Does make you wonder, eh?

Source: Bloomberg

Still, at least we have Bitcoin...

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