Month: July 2017

There Has to Be a Line beyond Which the Democratic Party Tells a Public Figure to Go Pound Sand

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In North Carolina, Governor Roy Cooper, ostensibly a Democrat, just signed a bill purposed designed to cripple the farmworkers union in the state.

The bill was promulgated by a Republican state senator who had been successfully sued by the union for wage theft:

Earlier today, North Carolina Governor Roy Cooper, a Democrat, signed the state’s Farm Act, which prohibits farmworkers’ unions from collecting union dues directly from workers’ paychecks.

Labor activists say that the provision in the bill, SB 615, was aimed at the Farm Labor Organizing Committee, which represents 10,000 farmworkers in North Carolina. Earlier this year, FLOC was able to force a major settlement from North Carolina State [Senator] Brent Jackson.

“This attack on farm workers’ rights is most likely in retaliation for a series of lawsuits brought by farm workers and their union (Farm Labor Organizing Committee) over wage theft and mistreatment on several farms in Eastern NC — including one owned by Sen. Brent Jackson, who sponsored this bill and chaired the Senate conference committee” said North Carolina AFL-CIO Secretary-Treasurer MaryBe McMillian. “It is a clear conflict of interest and blatant abuse of power for legislators who are also growers to push policies that allow them to gain more and more profit on the backs of their workers.”

Organized labor had hoped that Democratic Governor Roy Cooper would veto the bill,meeting with him twice to lobby against it. Yesterday, however, they received word that the Governor intended to sign it.

Normally, I’d be supportive of someone like Governor Cooper, but he could have vetoed it, even though there was a veto proof supermajority, or he could have allowed it to become law without his signature, signifying his disapproval.

He did neither, and I will neither forgive nor forget.

Feel Good Story of the Day

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“Bernie called me the day after our election here,” Jeremy Corbyn said in an interview published Thursday by the Intercept. “I was half-asleep watching something on television. And Bernie comes on to say, well done on the campaign, and I was interested in your campaigning ideas. Where did you get them from? And I said, well, you, actually.”

Corbyn, who won the leadership of the Labour Party in 2015 and held it after a 2016 challenge, has frequently been cited by Sanders as an example of how left politics can win. This year, a snap election that began with predictions about Corbyn driving Labour into the wilderness ended with a series of surprise gains, and Prime Minister Theresa May clinging to power in a controversial deal with Northern Ireland’s Democratic Unionist Party. According to a post-election analysis by Ipsos Mori, over half of eligible British voters under age 30 turned out — double the youth turnout rate in some American elections. That led to surprising Labour gains in cities with large universities, with student turnout overturning large Conservative majorities.

This amuses me no end.

But of Course………

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You know that clusterf%$# of a healthcare bill that Mitch McConnell is trying to push through the Senate?

It turns out that it exempts the US Senate from their “reforms”. Funny that, huh?

Senate Republicans included a provision that exempts members of Congress and their staff from part of their latest health care plan.

This exemption could have the effect of ensuring that members of Congress have coverage for a wider array of benefits than other Americans who purchase their own coverage.

A Senate Republican aide confirmed that the exemption existed but was unable to comment as to the specific effect it would have. The aide said it was included to ensure that the bill hewed to the chamber’s strict reconciliation rules that limit the policies this health bill can include.

The exemption is similar to the one that existed in the House health bill. After Vox reported on its existence, the House voted to close the loophole — and the Senate aide expected their chamber to follow the same path.

The revised Senate health bill draft released Thursday lets health insurers offer plans that do not cover the Affordable Care Act’s essential health benefits, which requires insurers to include a wide array of benefits such as maternity care and mental health services.

Insurers can offer plans without these benefits — unless they’re selling coverage to members of Congress and their staff, who are required to buy coverage on the health law marketplaces. The exemption says this part of the law still applies to any plans sold to Congress.

So not a surprise.

Linkage

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I have always wanted horns on my helmet, but I’ve wanted to have squeeze bulb type horns.

In any case, this note shows that the Norse were far more sophisticated than the generally thought.

Bad Day At The Office

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In dry dock bow view


In dry dock, stern view


Hull patch


More Damage


Another view of patch

Following its collision with a cargo ship, the USS Fitzgerald (DDG-62) is in dry dock, and it got seriously damaged.

Now we have pictures, and this ain’t just door dings:

A new series of photos released on Wednesday by U.S. 7th fleet now show the hidden damage suffered by USS Fitzgerald (DDG-62) from its June 17 collision with a merchant vessel.

The pictures of the guided missile destroyer from the Navy’s dry dock facility in Yokosuka, Japan show the size of the hole the bulbous bow of ACX Crystal punched into Fitzgerald’s starboard side amidships below the waterline.

Four five foot by 20-foot hull patches have been installed to cover the hull breach welded in place by divers since the ship was been pier-side following the collision.

While published images from Fitzgerald show the extensive damage to the ship’s superstructure above the waterline – including the collision’s effect on the ship’s A/N-SPY-1D(v) radar and the crushed commander’s cabin – the Wednesday images are the first that show how badly the destroyer was wounded below the waterline.

The below-the-waterline collision flooded two berthing spaces and one machinery space and resulted in the death of seven sailors.

This really is kind of horrifying to look at in detail.

I do look forward into an inquiry as to what happened, but US Navy culture being what it is, it is clear that the career of the Fitzgerald’s skipper is over.

Cuomo, the NYC Subway, and Drip, Drip, Drip

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When Cuomo declared an emergency in the New York City subway, and I noted that the emergency was largely precipitated by Cuomo’s hostility to and neglect of mass transit in New York City.

Well, now some of the specifics are coming out, and now we know that just a year ago, Andrew Cuomo ordered the MTA to cut a $5 million dollar check to ski slopes in upstate New York:

What’s come to be known as “the winter that wasn’t” in 2015-16 was so bad for business at state-owned ski centers such as Whiteface Mountain that Gov. Andrew Cuomo swooped in late last winter and directed a major downstate authority, cash-strapped in its own right, to expedite funds to this region’s state Olympic Regional Development Authority.

In March 2016, Cuomo’s administration directed the downstate-based Metropolitan Transportation Authority, the largest public transit authority in the U.S., to write a $4.9 million check to ORDA after its ski centers ailed from a lack of business amid 2015-16’s mild weather. ORDA owns and operates Whiteface Mountain Ski Center in Wilmington, Gore Mountain Ski Center in North Creek and Belleayre Ski Center in the Catskills.

The inter-authority transfer of funds was atypical, as Cuomo’s administration told the MTA to send the money directly to ORDA rather than to the state’s Division of Budget, which could then reallocate funds to ORDA.


………

Cuomo also has pledged $20 million worth of upgrades to its winter sports facilities at Whiteface and Gore mountains and at Mount Van Hoevenberg in Lake Placid, with a specific focus of emphasizing year-round attractions. At Mount Van Hoevenberg — currently home of the state’s bobsled-luge-skeleton track, cross-country skiing and biathlon venues — the state wants to finance the construction of the longest “mountain coaster” in the United States. At Whiteface, the state plans to build one of the longest zip lines in North America. Cuomo said in January that Whiteface and Gore aren’t good enough to compete globally without upscale amenities and conveniences and year-round attractions.

What a complete sh%$heel, which probably means the DNC is probably grooming him to be the 2020 Democratic nominee for President.

Best Analogy Ever

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Dean Baker, who called the housing bubble collapse, and sold his house before it happened has a remarkably evocative and accurate description of modern economics. He calls them the inept firefighters club:

Suppose that our fire department was staffed with out-of-shape incompetents who didn’t know how to handle a fire hose. That would be really bad news, but it wouldn’t be obvious most of the time because we don’t often see major fires. The inadequacy of the fire department would become apparent only when a major fire hit and we were left with a vast amount of unnecessary death and destruction. This is essentially the story of modern economics.

The problem is not that modern economics lacks the tools needed to understand the economy. Just as with firefighting, the basics have been well known for a long time. The problem is with the behavior and the incentive structure of the practitioners. There is overwhelming pressure to produce work that supports the status quo (i.e. redistributing to the rich), that doesn’t question authority, and that is needlessly complex. The result is a discipline in which much of the work is of little use, except to legitimate the existing power structure. In terms of the poor quality of work, it is easy to point to the failure to recognize the size and risks posed by the housing bubble in the last decade. This failure has been unbelievably costly to the United States and the rest of the world. If we compare the most recent estimates of the potential GDP of the U.S. economy from the Congressional Budget Office (CBO) with the projections made in 2008, before the severity of the crash was recognized, the difference is $1.8 trillion. This is an annual figure; it implies a loss of $18 trillion over the course of the decade. This amount averages out to more than $54,000 for every person in the country. Other countries have seen even larger losses.

………

I have suggested that economists who prescribe policies that turn out badly, or who can’t see multi-trillion dollar housing bubbles coming whose collapse sinks the economy, ought to pay a price in terms of their careers. Invariably people think I am joking. When they realize I am serious, they think I am crazy or vindictive.

Leaving aside motives, let me just speak to the economics. If we have a profession in which people are rewarded with high pay and career advancement for saying the same thing as everyone else, and never face any consequences when the accepted wisdom proves to be wrong, then we should expect to see economists like the firefighters mentioned at the beginning of this piece. They aren’t qualified to do the job and our only hope is that we don’t see any more major fires.

Read the rest of the article, because it addresses some more serious deficiencies in economics, particularly the tendency of people in the field to take simple concepts and obfuscate.

More of This

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Tronc, the company formerly known as Tribune Publishing, has failed in its bid to buy the Chicago Sun Times and the Chicago Reader.

Instead, a group of investors, including the Chicago Federation of Labor, purchased the publisher of the two papers, maintaining its independence of one of the largest media conglomerates in the nations:

In the end, one man made all the difference.

Edwin Eisendrath, the former Chicago alderman who ran losing campaigns for governor and congressman earlier in his career, just won the most unlikely challenge he’d ever undertaken: He kept the Chicago Sun-Times independent and out of the clutches of Chicago Tribune owner tronc. “It was bashert,” Eisendrath told me, using the Yiddish word for “destiny.” How else to explain the odds he overcame to make it happen?


On Wednesday, Eisendrath and a coalition of labor unions and individual investors closed on the purchase of the daily Sun-Times and the alternative weekly Chicago Reader from Wrapports Holdings LLC. Terms of the deal were not disclosed, but sources said the key was securing more than $11.2 million in escow to cover projected operating losses over the next two years.

“Today’s deal to buy the Sun-Times preserves two independent newspaper voices in Chicago, a rare thing in America these days,” Eisendrath tweeted. “We wanted to make sure that Chicago had a genuine voice with honest and good reporting that connects with working men and women.”

Eight weeks ago it seemed all but certain tronc would take over the Sun-Times in a move that many believed would have stifled competition and led to the inevitable demise of the city’s No. 2 newspaper. All that stood in the way of the deal was the vigilance of the U.S. Department of Justice Antitrust Division.

Alone in answering the Justice Department’s call for alternative bidders was Eisendrath, backed by the Chicago Federation of Labor and a belief that the Sun-Times was too vital to the life of the city to forfeit its independence.

My guess is that the (probably pre-Trump) DoJ call for bidders had a lot to do with Tronc losing the bid, because it implied a lot of litigation if the two big Chicago papers merged.

I’d like to see more official moves against consolidation.

Clearly, Global Warming is a Myth

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This is anthropogenic climate change, or a giant wants the 2nd largest martini ever.

an ice berg the size of Delaware has detached from the Larson-C ice sheet:

A hunk of ice the size of Delaware broke off from the Antarctic Peninsula.

Sometime in the last few days, scientists say an iceberg weighing roughly a trillion metric tons separated from the Larsen C Ice Shelf and began its long, slow drift northward through the Weddell Sea.

The 2,400 square-mile mass of ice won’t immediately raise sea levels, but its loss has probably altered the profile of the continent’s western peninsula for decades to come, scientists say.

The Larsen Ice Shelf consists of a series of many floating ice chunks. It is named for Norwegian explorer Capt. Carl Anton Larsen, who discovered it in 1893.

By the time it was first photographed in the 1960s, the fateful crack was already visible, according to NASA.

………

The release of this iceberg has reduced Larsen C, the largest ice shelf in the Larsen formation and the fourth-largest on the continent, by more than 12%. Scientists says the remaining ice shelf could now be less stable, which could pave the way for a more severe event: disintegration.

“This ice shelf is on the trajectory to collapse in the coming decades,” said Eric Rignot, a UC Irvine glaciologist and research scientist at NASA’s Jet Propulsion Laboratory in La Cañada Flintridge.

While this has no direct impact on sea level, the ice was already floating in the water, it does have the effect of clearing the path for increased ice flows from land based glaciers, like removing a cork from a bottle, which could raise sea levels.

Also, the weight of ice over the land in Antarctica and Greenland has actually pushed the land down, so not only will the water melt eventually cause sea level rise, but more land will erupt which will further raise sea levels.

This is something that we need to address sooner rather than later.

Wrong Lesson Learned

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Adopting Delta Seating?

Amtrak is looking at making train travel more like flying Delta, because, much like the major airlines, they hate their passengers.

Amtrak is missing a key fact about their situation:  Unlike the airlines sitting in their fortress hubs, they have a lot of competitors.

A bus is cheaper and only slightly slower than passenger rail:+

If there’s one thing that riding the rails has over flying, perhaps it’s comfort: Train passengers have a bit more legroom than on planes, and can get up and walk around at any time. We all may need to stretch our legs a bit more if Amtrak decides to pack in more seats.

The outgoing co-chief executive of Amtrak says the rail system — which is in need of a major financial boost — is thinking about possibly making it less comfortable in economy class by adding additional seats, Reuters reports.

He didn’t just say that Amtrak is considering adding more seats; he outright admitted that tightening up seat pitch — the distance between the seatback and the seat in front of it — is just one “creative” change under consideration that could make things worse for passengers.

“There will be some other things that just don’t make it quite as comfortable,” Wick Moorman told reporters at a National Press Club talk this week.

Cramped seating is likely nothing new for Amtrak’s recent hire, former Delta Air Lines CEO Richard Anderson. He joined the company as president and co-CEO on Wednesday, and will be sharing the top spot until Moorman steps down on Dec. 31.

When I first read this, I hadn’t realized that the new HMFIC at Amtrak was actually from Delta, I just defaulted to Delta as a standard avatar as agony in air travel.

Delta has long been the standard for poor quality in customer service in airlines, well, it was until United Airlines said, “Hold my beer.”

FWIW, here is John Mulaney on Delta Airlines:

This is What Happens When Government Plays Footsie with Real Estate Developers

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The plans for a new FBI headquarters have been scrapped.

As much as I hope that a new headquarters would remove the name of J. Edgar Hoover, this was rather complex deal, which involves various “incentives” from competing state and local governments and a byzantine property swap for services to lower cost, and as such, it seemed to be a recipe for a fiasco:

The federal government is canceling the search for a new FBI headquarters, according to officials familiar with the decision, putting a more than decade-long effort by the bureau to move out of the crumbling J. Edgar Hoover Building back at square one.

The decision follows years of failed attempts by federal officials to persuade Congress to fully back a plan for a campus in the Washington suburbs paid for by trading away the Hoover Building to a real estate developer and putting up nearly $2 billion in taxpayer funds to cover the remaining cost.

Officials from the General Services Administration, which manages federal real estate, said they plan to announce the cancellation in a phone call with bidders and in meetings on Capitol Hill on Tuesday morning. They spoke on the condition of anonymity because they were not authorized to disclose the decision before it was announced.

For years, FBI officials have raised alarms that the decrepit conditions at Hoover constitute serious security concerns. But the plan to replace the building grew mired in a pit of government dysfunction and escalating costs with no end in sight.

………

The GSA’s unconventional strategy of trying to offset the development cost by trading the Hoover Building downtown to the winning bidder was aimed at saving the government money but became a laborious and expensive complication.

As the search dragged on, both the federal government and developers bidding on the project began to bear inordinate costs.

Real estate companies pursuing the deal spent years and millions of dollars attempting to make their case for the project. The GSA, meanwhile, is housing many of the bureau’s 9,500 headquarters employees using expensive short-term leases at about a dozen locations throughout the Washington region because the staff long ago outgrew the Hoover Building.

………

President Barack Obama had sought $1.4 billion toward construction of the project, but in May, Congress left it underfunded by more than a half-billion dollars. Congressional leaders had pulled together $523 million toward the project and possibly $315 million more through transfers of existing funds previously meant for other uses.

That was on top of $390 million that had been previously appropriated for the project.

Then in June, House appropriators rescinded $200 million from the project, drawing exasperation from local officials who have been pushing for the government to decide among three final locations: Greenbelt, Md., Land­over, Md., or Springfield, Va.

At the time the House took back the $200 million, Minority Whip Steny H. Hoyer (D-Md.) and Rep. Anthony G. Brown (D-Md.) called the decision “reprehensible.”

………

Acting GSA administrator Timothy Horne is scheduled to testify before a House subcommittee Wednesday at a hearing about “Maximizing Taxpayer Returns and Reducing Waste in Real Estate.”

Hopefully, he will be aggressively questioned, because a cost more than $1½ billion for the building AFTER giving away some of the most attractive real estate in indicates that, “Maximizing Taxpayer Returns and Reducing Waste in Real Estate,” is not a governing principle here.

Quote of the Day

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What centrists are missing is that elites have too much power and too little competence.

—Chris Dillow

Mr. Dillow is noting that the Blairites have missed the reality, that their base, the highly paid managerial class is not particularly good at their jobs, and so are grossly overpaid, which costs the rest of us.

It’s a very specific critique that nicely frames the complete intellectual bankruptcy of the Blairites, because it is predicated on ignoring that, “Parasitic managerialism caused the financial crisis, greatly contributed to the productivity slowdown and is now wreaking damage to universities. New Labour’s fetishizing of “leadership” and targets helped to legitimate this.”

Keep the USPTO Away From Toilet Paper, They Will Sign Anything

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What the F%$# was the USPTO Thinking?

Case in point, they just issued a patent for using a computer to count calories:

This month’s stupid patent, like many stupid patents before it, simply claims the idea of using a computer for basic calculations. U.S. Patent No. 6,817,863 (the ‘863 patent) is titled “Computer program, method, and system for monitoring nutrition content of consumables and for facilitating menu planning.” It claims the process of using a computer to track nutrition information like calorie or vitamin intake. It is difficult to think of a more basic and trivial use for a computer.

The ‘863 patent is owned by a patent troll called Dynamic Nutrition Solutions, LLC. Dynamic Nutrition filed a lawsuit this month in the Eastern District of Texas accusing Australian company Fatsecret of infringing the ‘863 patent. Dynamic Nutrition had filed four other lawsuits. Consistent with a pattern of nuisance litigation, each of those earlier suits settled very quickly.

What “invention” does the ‘863 patent purport to cover? Claim 1 of the patent is reproduced in full below (with comments in brackets):

A computer program comprising a combination of code segments stored in a computer-readable memory and executable by a processor to provide nutrition content information related to consumables, the computer program comprising:

a code segment operable to receive and store an input related to consumption of consumables, and to associate the input with a calender [sic] date [i.e. program a computer to track daily food intake]; and

a code segment operable to generate an interactive display screen, wherein the interactive display screen includes— [i.e. include some kind of user interface]

one or more lists of consumables and related nutrition content information, and [i.e. list food options and nutrition information]

a summary section of past consumption of consumables. [i.e. list past food intake]

In other words, program a computer to help people keep track of meals and calorie or vitamin intake.

The USPTO may be more dysfunctional than the Pentagon, and that is saying a lot.

Not The Onion

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Real headline from the Los Angeles Times:

Nevada Has a Drug Problem: Shops Are Running out of Marijuana

Nevada is running out of pot, and the Department of Taxation is freaking out, because they have been making serious bank from this new industry.

Basically, it’s an artifact of lobbying from (you guessed it) liquor distributors, who were opposed to competition for chemically induced stupid:

Nevada officials have declared a state of emergency over marijuana: There’s not enough of it.

Since recreational pot became legal two weeks ago, retail dispensaries have struggled to keep their shelves stocked and say they will soon run out if nothing is done to fix a broken supply chain.

“We didn’t know the demand would be this intense,” Al Fasano, cofounder of Las Vegas ReLeaf, said Tuesday. “All of a sudden you have like a thousand people at the door.…We have to tell people we’re limited in our products.”

In declaring a state of emergency late last week, the state Department of Taxation warned that “this nascent industry could grind to a halt.”

As bad as that would be for marijuana consumers and the pot shops, the state has another concern: tax revenue. A 10% tax on sales of recreational pot — along with a 15% tax on growers — is expected to generate tens of millions of dollars a year for schools and the state’s general fund reserves.

………

In the run-up to last year’s state referendum over legalization — which was overwhelmingly approved by voters, allowing people aged 21 and over to buy or possess up to an ounce of marijuana — the state’s powerful alcohol lobby worried that legalized weed would cut into liquor store sales.

So in a concession to the the alcohol industry, the ballot measure stipulated that for the first 18 months of pot sales only wholesale alcohol distributors would be allowed to transport marijuana from cultivation facilities to the dispensaries.

When legalization took effect July 1, nearly 50 dispensaries — all of them already in the medical marijuana business — had been licensed to sell recreational pot. But no alcohol distributors had been approved to transport it.

The state Department of Taxation, which regulates legal marijuana, said it had received about half a dozen applications from alcohol distributors but that none had so far met the state licensing requirements, which include background checks and security protocols.

As a result, the dispensaries have had to rely on marijuana already in stock.

Dispensaries and state officials had anticipated the problem, and in late June the Department of Taxation attempted to loosen the licensing rules to allow dispensaries to transport their own marijuana.

But a District Court judge blocked the request, arguing that the state needed to go through the regulatory process to determine how many distributors were needed. The state appealed the decision to the Nevada Supreme Court.

Needless to say the juxtaposition of legislative cowardice and regulatory and judicial missteps has created a complete clusterf%$#, which has the state of Nevada scrambling to secure a reliable supply of weed.

Under normal circumstances, I’d be asking, “What the f%$# were they smoking when they came up with this?” but in this case, I think that we actually know what they were smoking.

Deep Thought

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I’m trying to figure out a way to comment on the rapidly accumulating major f%$# ups by Donald Trump and his Evil Minions™.

I’m think that every time I refer to a Trump-related scandal, I should append the phrase, “and zombies,” to the end.

So, it would be, “Russiagate, and zombies,” and “Jared Kushner’s business dealings, and zombies,” or, “Anything involving Betsy Devos, and Zombies.”

I would appreciate comments from my reader(s) about this.

Also, I would be much obliged for any suggestions for alternate phrases.

Dried Out School Marm Cancels Recess

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By “School Marm”, I mean Mitch McConnell, and by “recess”, I mean that he is delaying the Senate recess in an attempt to pass some variant of TrumpCare.

I understand where he is coming from, Republican politicians are getting savaged at their public meetings by their constituents, and one of the things that goes on when the Congress is on recess is meetings with the public.

McConnell is clearly trying to minimize opportunities for members of his caucus to interact with the public before they vote on the bill, because being screamed at by the mother of a profoundly disabled child who would lose coverage tends to make politicians skittish.

If this weren’t literally a matter of life and death, I would be amused at the Republican discomfort at their current situation.

While We Are on the Subject of, Treason, Bribery, or Other High Crimes and Misdemeanors ………

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It does appear that Donald Trump (père, not fils) may have been using his position as President in an attempt to secure a bailout for a disastrous real estate deal made by Jared Kushner.

Specifically, Trump’s immediately taking the side of the House of Saud in their dispute with Qatar on Twitter may very well have been retaliation for their turning down a deal with his son-in-law:

Not long before a major crisis ripped through the Middle East, pitting the United States and a bloc of Gulf countries against Qatar, Jared Kushner’s real estate company had unsuccessfully sought a critical half-billion-dollar investment from one of the richest and most influential men in the tiny nation, according to three well-placed sources with knowledge of the near transaction.

Kushner is a senior adviser to President Trump, and also his son-in-law, and also the scion of a New York real estate empire that faces an extreme risk from an investment made by Kushner in the building at 666 Fifth Avenue, where the family is now severely underwater.

Qatar is facing an ongoing blockade led by Saudi Arabia and the United Arab Emirates and joined by Egypt and Bahrain, which President Trump has taken credit for sparking. Kushner, meanwhile, has reportedly played a key behind-the-scenes role in hardening the U.S. posture toward the embattled nation.

That hard line comes in the wake of the previously unreported half-billion-dollar deal that was never consummated. Throughout 2015 and 2016, Jared Kushner and his father, Charles, negotiated directly with a major investor in Qatar, Sheikh Hamad bin Jassim al-Thani, known as HBJ for short, in an effort to refinance the property on Fifth Avenue, the sources said.

Trump himself has unsuccessfully sought financing in recent years from the Qataris, but it is difficult to overstate just how important the investment at 666 Fifth Avenue is for Kushner, his company, and his family’s legacy in real estate. Without some outside intervention or unforeseen turnaround in the market, the investment could become an embarrassing half-billion-dollar loss. It’s unclear precisely how much peril such a loss would put Jared’s or his family’s finances in, given the opacity of their private holdings.

HBJ, a former prime minister of Qatar who ran the country’s $250 billion sovereign wealth fund, is a billionaire and one of the world’s richest men. He owns a yacht worth $300 million called Al Mirqab, the same name he gave to the private investment firm that Kushner pitched. The former emir of Qatar summed up HBJ’s power with a quip: “I may run this country, but he owns it.”

HBJ ultimately agreed to invest at least $500 million through Al Mirqab, on the condition that Kushner Companies could raise the rest of a multibillion refinancing elsewhere. The negotiations continued long after the election, carried out as recently as this spring by Charles Kushner. “HBJ basically told them, we’re good for 500, subject to a lot of things, but mainly subject to you being able to raise the rest,” said one source in the region with knowledge of the deal. The talks were confirmed by two additional sources with knowledge of the talks. One of those sources claimed that the potential deal was not contingent on the rest of the money being raised and that the HBJ investment was on hold as the overall structure of the financing was reconsidered. None of the sources would agree to talk on the record about a private financial transaction that has until now remained a secret.

………

The revelation of the half-billion-dollar deal raises thorny and unprecedented ethical questions. If the deal is not entirely dead, that means Jared Kushner is on the one hand pushing to use the power of American diplomacy to pummel a small nation, while on the other his firm is hoping to extract an extraordinary amount of capital from there for a failing investment. If, however, the deal is entirely dead, the pummeling may be seen as intimidating to other investors on the end of a Kushner Companies pitch.

………

On June 6, President Trump took sides, taking credit for the moves by the Gulf nations.

…extremism, and all reference was pointing to Qatar. Perhaps this will be the beginning of the end to the horror of terrorism!

— Donald J. Trump (@realDonaldTrump) June 6, 2017


So good to see the Saudi Arabia visit with the King and 50 countries already paying off. They said they would take a hard line on funding…

— Donald J. Trump (@realDonaldTrump) June 6, 2017


During my recent trip to the Middle East I stated that there can no longer be funding of Radical Ideology. Leaders pointed to Qatar – look!

— Donald J. Trump (@realDonaldTrump) June 6, 2017


On June 9, after Saudi Arabia and the UAE had begun to blockade Qatar, Secretary of State Rex Tillerson sought to calm nerves, calling for mediation and an immediate end to the blockade.

Within hours, Trump, at a White House ceremony, contradicted Tillerson, slamming Qatar again and claiming it had “historically been a funder of terrorism at a very high level.”

Trump’s White House remarks, Tillerson came to believe, had been written by UAE Ambassador Yousef Al-Otaiba and delivered to Trump by Jared Kushner.

(emphasis mine)

This is Teapot Dome level crap.

It’s easy to understand, and the violation of the law is clear.

What’s more from a power politics perspective, if this becomes a major political issue, it would scare off any potential investors for 666 5th Avenue, which would likely cripple the Kushner Company empire when the balloon payment comes due.

Quoting Billy Ray Valentine from the movie Trading Places, “The best way you hurt rich people is by turning them into poor people.”

OK, This is Now Officially a Legitimate Sh%$ Storm

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TheNew York Post states the obvious.*

OK, so now we know that in June of last year, Donald Trump, Jr., aka “Fredo”, was setting up a meeting with a Russian lawyer at the request of a publicist for a Russian to get dirt on Hillary Clinton. (Yes, this is profoundly weird and f%$#ed up)

This is now a big deal, not because this was necessarily a crime, I find the claims of a violation of Section 30121 of Title 52 to be a stretch in the world of Citizens United, but because we now have evidence of a conspiracy and a coverup.

It was a conspiracy to obstruct justice that took down Richard Nixon, after all.

I don’t think that this is the most impeachable thing that Trump has done (that will be a later post), but this has a potential to hamstring the Trump administration, particularly if the Democrats take back the House and Senate in 2018.

The underlying crime here is still a violation of campaign finance law, not espionage, not treason† or some similar heinous crimes.

From a political perspective, I do not think that this is a good thing for the Democratic Party.

This provides yet another opportunity for the Dems to miss the opportunity to reform, and ditch the incompetent and clueless deadwood that populate the party’s professional consultant class.

As opposed to a movement toward some sort of ideological coherence, the national Democratic Party will remain in, “A noun, a verb, and Vladimir Putin,” mode, which I do not believe will resonate with voters.

If hostility toward Russia were a political winner nationwide, Hillary Clinton would be President now.

My guess is that right now, Republicans will slow walk any investigation, saying that they need to wait for Special Prosecutor Muller’s report.

I expect months of overwrought press coverage over this, because this is a classic example of catnip for reporters.

*I cannot f%$#ing believe that I am f%$#ing citing the f%$#ing New York f%$#ing Post.
†It was never treason. Treason is specifically defined in the US Constitution because of at least a millennia of abuse in Europe, and this does not meet that very specific definition.‡
‡That being said, Nixon’s sabotage of Vietnam peace talks in 1968, and Reagan and Poppy Bush’s deal with Iran to keep the hostages held in Iran in 1980 might meet the statutory requirements of Article 3, Section 3 of the Constitution.