Global Markets Swoon as Worries Mount Over Superpowers' Plans

Well, my investment portfolios are going to take a hit, but they'll swing back, despite what bonehead Biden does.

At NYT, "The S&P 500 closed down 1.7 percent over a number of jitters, like China’s sputtering real estate market and the phasing out of stimulus measures in the United States":

Investors on three continents dumped stocks on Monday, fretting that the governments of the world’s two largest economies — China and the United States — would act in ways that could undercut the nascent global economic recovery.

The Chinese government’s reluctance to step in and save a highly indebted property developer just days before a big interest payment is due signaled to investors that Beijing might break with its longstanding policy of bailing out its homegrown stars.

And in the United States, the globe’s No. 1 economy, investors worried that the Federal Reserve would soon begin cutting back its huge purchases of government bonds, which had helped drive stocks to a series of record highs since the coronavirus pandemic hit.

The sell-off started in Asia and spread to Europe — where exporters to China were slammed — before landing in the United States, where stocks appeared to be heading for their worst performance of the year before a rally at the end of the trading day. The S&P 500 closed down 1.7 percent, its worst daily performance since mid-May, after being down as much as 2.9 percent in the afternoon.

The catalyst for the swoon was the continued turmoil at China Evergrande Group, one of that country’s top three developers of residential properties. The company has an estimated $300 billion in debt, and an interest payment of more than $80 million is due this week.

Analysts said Evergrande’s plight was severe enough that it would be unlikely to survive without Chinese government support. “The question is to what degree are there spillover risks within Chinese equities and then cascading into the global markets,” said John Canavan, lead analyst at Oxford Economics.

Few entities move markets the way the American and Chinese governments can, by their actions and inaction, and the worldwide tumble on Monday made this clear. Until recently, investors seemed content to ignore a variety of issues complicating the recovery — including the emergence of the Delta variant and the supply chain snarls that have bedeviled consumers and manufacturers alike.

But beginning this month, as Evergrande began to teeter and the likelihood of the Fed’s scaling back — or tapering — its bond-buying programs grew, the market’s protective bubble began to deflate. Some U.S. investors are also concerned that tax increases are in the offing — including on share buybacks and corporate profits — to help pay for a spending push by the federal government, the signature piece of which is President Biden’s proposed $3.5 trillion budget bill. Separately, Congress also must act to raise the government’s borrowing limit, a politically charged process that has at times thrown markets for a loop.

On Monday, those currents combined, reflecting the interconnectedness of the global markets as investors everywhere sold their holdings.

The decline was ugliest in Asia, where Evergrande’s woes — its shares fell 10.2 percent — dragged down other Chinese real estate companies’ stocks by 10 percent or more. Markets on the Chinese mainland were closed for the day, but Hong Kong’s Hang Seng index fell 3.3 percent.

For decades, Chinese growth was driven by investment in infrastructure, including the market for residential property, which was financed with huge sums of borrowed money. Banks often lent to developers at the direction of the government, which looked at property building as a source of jobs and economic growth.

“Beijing says lend, so you lend; when or even whether you get your money back is secondary,” wrote analysts with China Beige Book, an economic research firm.

Many lenders therefore viewed companies such as Evergrande as having an implicit guarantee from the government, meaning that if the company couldn’t pay its debts, the government would ensure creditors get repaid...

Pfft.

We should be hammering the Chinese economy: Dump all Chinese listings off U.S. capital markets and retaliate against Chinese currency manipulation, protectionist trade practices, and theft of U.S. technological know-how. And if Xi attacks Taiwan, we should bomb Chinese cities and military-industrial centers and destroy the Chinese navy.

Still more.

Xi Jinping Aims to Rein In Chinese Capitalism, Hew to Mao’s Socialist Vision

Rein in? Yeah, we need to rein in Beijing, the freakin' lyin', cheatin,' heathen rogue regime of the new new world order. 

Jeez, I can't stand China. (Though I'm around Chinese folks all the time in Irvine, and they're just fine; indeed, I see them as hitting the lottery, coming here, getting citizenship, bringing their folks over from the Mandarin prison state; hittin' the lottery indeed.)

At Wall Street Journal, "Going beyond curbing tech giants, he wants the Communist Party to steer flows of money and set tighter limits on profit making":

Xi Jinping’s campaign against private enterprise, it is increasingly clear, is far more ambitious than meets the eye.

The Chinese President is not just trying to rein in a few big tech and other companies and show who is boss in China.

He is trying to roll back China’s decadeslong evolution toward Western-style capitalism and put the country on a different path entirely, a close examination of Mr. Xi’s writings and his discussions with party officials, and interviews with people involved in policy making, show.

For most of the 40 years after Deng Xiaoping first unleashed economic reforms in China, Communist Party leaders gave market forces wider room to flourish. That opening helped lift hundreds of millions of people out of poverty and created trillions of dollars in wealth, but also led to rampant corruption and eroded the ideological basis for continued Communist rule.

In Mr. Xi’s opinion, private capital now has been allowed to run amok, menacing the party’s legitimacy, officials familiar with his priorities say. The Wall Street Journal examination shows he is trying forcefully to get China back to the vision of Mao Zedong, who saw capitalism as a transitory phase on the road to socialism.

Mr. Xi isn’t planning to eradicate market forces, the Journal examination indicates. But he appears to want a state in which the party does more to steer flows of money, sets tighter parameters for entrepreneurs and investors and their ability to make profits, and exercises even more control over the economy than now. In essence, this suggests that he aims to rewrite the rules of business in what could someday be the world’s biggest economy.

“China has entered a new stage of development,” Mr. Xi declared in a speech in January. The goal, he said, is to build China into a “modern socialist power.”

Mr. Xi’s overhaul has generated more than 100 regulatory actions, government directives and policy changes since late last year, according to a Journal tally, including steps aimed at breaking the market dominance of companies such as e-commerce behemoth Alibaba Group Holding Ltd., conglomerate Tencent Holdings Ltd. and ride-sharing leader Didi Global Inc.

The government’s recent measures to tame housing prices are worsening a cash crunch at China Evergrande Group , a heavily indebted real-estate developer, sending chills across global markets. Beijing is unlikely to bail out Evergrande the way it has rescued many state firms, analysts say, and could further tighten the regulatory screws on other private developers.

Mr. Xi has signaled plans to go much further. During a leadership meeting in August, he emphasized a goal of “common prosperity,” which calls for a more equal distribution of wealth. This would be achieved in part through more government intervention in the economy and more steps to get the rich to share the fruits of their success.

An Aug. 29 online commentary circulated by state media called it a “profound revolution” for the country.

“Xi does think he’s moving to a new kind of system that doesn’t exist anywhere in the world,” said Barry Naughton, a China economy expert at the University of California, San Diego. “I call it a government-steered economy.”

A number of countries closely regulate industry, labor and markets, set monetary policy and provide subsidies to help boost their economies. In Mr. Xi’s version, the government would have a level of control that would allow it to steer the economy and industry along a path of its choosing, and channel private resources into strengthening state power.

The big risk for China and Mr. Xi is that the push winds up suppressing much of the entrepreneurial energy that has powered China’s boom and years of innovation.

For foreign businesses, the campaign likely means more turbulence ahead. Western companies have always had to toe the party line in China, but they are increasingly asked to do more, including sharing personal user data and accepting party members as employees. They could be pressed to sacrifice more profits to help Beijing achieve its goals.

“Supervision over foreign capital will be strengthened,” said a person familiar with the thinking at China’s top markets regulator, “so it won’t be able to obtain ultra-high profits in China through monopoly and capital-market operations.”

The Information Office of the State Council, China’s top government body, didn’t respond to questions for this article.

Before this year, Mr. Xi was distrustful of capital, but he had other priorities. Now, having consolidated power, he is putting the whole government behind his plans to make private business serve the state.

A once-in-a-decade leadership transition due for late 2022, when Mr. Xi is expected to break the established system of succession to stay in power, provided an impetus to act and show he is doing something big for the people to justify longer rule, officials involved in policy making say.

At internal meetings, some of them say, Mr. Xi has talked about the need to differentiate China’s economic system. Western capitalism, in his view, focuses too heavily on the single-minded pursuit of profit and individual wealth, while letting big companies grow too powerful, leading to inequality, social injustice and other threats to social stability.

Early this year, when Facebook Inc. and Twitter Inc. took down former U.S. President Donald Trump’s accounts, Mr. Xi saw yet another sign America’s economic system was flawed—it let big business dictate what a political leader should do or say—officials familiar with his views said.

A few months later, when the Chinese Communist party celebrated its centenary on July 1, Mr. Xi donned a Mao suit and stood behind a podium adorned with a hammer and sickle, pledging to stand for the people. After the speech, he sang along with “The Internationale” broadcast across Tiananmen Square. In China, the song, a feature of the socialist movement since the late 1800s, has long symbolized a declaration of war by the working class on capitalism.

Such gestures, once dismissed as political stagecraft, are being taken more seriously by China watchers as it becomes evident Mr. Xi is more ideologically driven than his immediate predecessors.

The difference between his vision and Western-style capitalism, he has said at internal meetings, is that in China, “Capital serves the people.”

Industries that Mr. Xi views as being led astray by a capitalist spirit, including not only tech but also after-school tutoring, digital gaming and entertainment, are bearing the immediate brunt.

A policy aimed at turning private education companies into nonprofit entities all but killed New Oriental Education & Technology Group Inc., which has provided English lessons to generations of students studying abroad. Its shares have plunged about 90% this year.

Founder Yu Minhong, nicknamed “Godfather of English Training” in China, broke into tears during a recent company meeting, according to an employee. “It’s devastating to him, and to all of us,” the employee said.

Mr. Xi’s policy changes have dashed more than $1 trillion in stock-market value and erased over $100 billion of wealth for entrepreneurs such as Alibaba founder Jack Ma and Tencent’s Pony Ma. Private companies and their owners are being encouraged to donate profits and wealth to help with Mr. Xi’s common-prosperity goals. Alibaba alone has pledged the equivalent of $15.5 billion. State-owned companies, having already bulked up under Mr. Xi’s rule, are marching into areas that were pioneered by private firms but are increasingly seen as crucial to national security, such as management of digital data.

A ministry supervising state companies, the State-owned Assets Supervision and Administration Commission, is mapping plans to set up more government-controlled providers of cloud services for data storage, people familiar with the agency’s workings say. Such services have been dominated by private companies, including Alibaba and Tencent.

The city of Tianjin has ordered companies it supervises to migrate data from private-sector cloud platforms to state-owned ones within two months of the expiration of existing contracts, and by September 2022 at the latest, according to an official notice dated Aug. 12. More localities are expected to follow suit, the people say.

Government-controlled entities are acquiring stakes and filling board seats in more companies to make sure they fall in line with the state’s goals. ByteDance Ltd., owner of the video-sharing app TikTok, and Weibo Corp. , which runs Twitter-like microblogging platforms, recently have sold stakes to state-backed companies.

Mr. Xi is fully in charge of the campaign, instead of delegating details to Vice Premier Liu He, his chief economic adviser, as in the past. A central party office reporting directly to Mr. Xi has been sending out directives instructing ministries to take actions and coordinate policies...

 

Tax the Rich? Okay, But How Much is 'Rich'?

Following-up, "House Democrats Consider 26.5% Corporate Tax Rate (VIDEO)."

One of these days Democrats will describe my income, as a college professor, as "rich." 

Seems like "rich" has been defined down consistently over the last two decades. Four-hundred thousand annually is usually the number you hear, but inflation's never figured into Democrat numbers, so people just making good money, but by no means wealthy (which in my opinion are folks with wealth in the tens of millions, at least), are always caught in the trap, as the clutches of government reach down farther and farther as time goes on.

At NYT, "Proposed Tax Changes Focus on the Wealthy":

So how do you define who’s wealthy?

The latest proposed tax changes from the House Ways and Means Committee essentially say a wealthy individual is someone who earns $400,000 a year or a couple with $450,000 in annual income.

“Rich is just the term we use to describe people who have more than us when we don’t think they deserve it,” said Brad Klontz, a financial psychologist in Boulder, Colo. “The definition of rich is entirely subjective,” adding that “$400,000 is just an arbitrary number — it might make you ‘rich’ in Middle America but middle class on the coasts.”

Four years ago, when the last changes to the Internal Revenue Code were made, the emphasis was on a lower tax rate for corporations and for super-wealthy individuals, particularly those who owned real estate and could profit from a very specific tax-deferral strategy on property.

This time around, corporations aren’t going to be paying significantly higher taxes, at least not as high as some progressives wanted. Instead, the tax legislation focuses on raising revenue from the wealthy.

“All of this legislation is focused on the individual and upping the ante for the wealthy,” said Michael Kosnitzky, a partner at the law firm Pillsbury Winthrop Shaw Pittman. “Increasing the corporate tax rate does not get at the wealthy because corporate taxes are paid by the shareholders, who get less dividends, the employees who get less salary, and the consumer, who pays more for goods and services. These proposals get at personal income tax.”

The proposed top income tax rate of 39.6 percent looks like the old top rate of 39.6 percent from 2017. It kicks in at $400,000 of income for an individual and $450,000 for a couple, which is slightly lower than the income level in 2017. Currently, the highest income tax bracket, at 37 percent, starts at $523,600 for an individual and $628,300 for a couple.

But those affected by the new rate would also pay more because there are fewer deductions than there were in the tax code before the 2017 changes.

“You have to look at the effective rate,” said Pam Lucina, chief fiduciary officer and head of trust and advisory services at the financial services firm Northern Trust. “We have far fewer deductions, so that 39.6 percent rate is a much higher rate.”

The one that affected many people was the loss of the full deduction for state and local taxes, or SALT. In the 2017 changes, the deduction was limited to $10,000 and primarily affected people who lived in Democratic-controlled states in the Northeast and on the West Coast, where state income and property taxes are high.

Limiting it brought the U.S. Treasury more money. In 2017, the unlimited deduction cost the federal government an estimated $122.5 billion; the cap brought that number down to $24.4 billion the next year.

The details of the tax proposal are still being negotiated, and lawmakers representing the states affected said they hoped that they could reinstate more of the SALT deduction. One proposal would double the deduction to $20,000, not a wholesale return to what it had been.

The tax that has defined this year’s discussion has been capital gains. The proposal in the legislation — raising the rate to 25 percent, from 20 percent, for people earning over $400,000 — came as a relief to two sets of taxpayers: the very wealthy and anyone who might inherit property.

The Biden administration began the year talking about raising the capital gains rate to the ordinary income tax rate for high earners and disallowing a provision that enables people to inherit property free of capital gains.

The administration’s original proposal talked about having a top capital gains rate of 43.4 percent — the top income tax rate plus the 3.8 percent surtax on investment income that pays for Obamacare — for people earning above $1 million. But most of the attention was drawn to President Biden’s proposal to end the so-called step-up in basis at death — which erases all the taxable gains in assets that are passed on to heirs. Repealing that would have brought in an extra $11 billion in tax revenue annually.

That proposal has since been dropped.

“No loss of the step-up in basis is a big win for wealthy families,” said Edward Renn, a partner in the private client and tax group at law firm Withersworldwide.

But that change wasn’t made to save wealthy families. It was done because the change could hurt families of more modest means who had assets to pass on to their children.

“The provision benefits very wealthy people who have built businesses,” said Justin Miller, the national director of wealth planning at Evercore Wealth Management. “But it also benefits any person who is inheriting a home from their parents and grandparents that could have hundreds of thousands of dollars that could be subject to capital gains tax. It would have impacted a lot of people, not just the top 1 percent or the top 0.1 percent. It would not have been a popular strategy.”

Taxes affecting estates and large gifts have long been ripe for tax changes. One change would bring the estate tax exemption back to the level it was at in the Obama administration. But that isn’t likely to raise more revenue from megamillionaires and billionaires. While the proposed exemption would fall to about $6 million a person from $11.7 million, the estate tax rate would remain at 40 percent. That’s what matters to the largest estates...

 

Biden's Bad Day

Ooops!

From yesterday, at NYT, "Pentagon Acknowledges Aug. 29 Drone Strike in Afghanistan Was Tragic Mistake."

And posted here yesterday, "The Masking of the Servant Class," and from Thursday, "Why Australia Bet the House on Lasting American Power in Asia" and "In Submarine Deal With Australia, U.S. Counters China but Enrages France."

And today, at A.P, "One stunning afternoon: Setbacks imperil Biden’s reset":

WASHINGTON (AP) — It was an hour President Joe Biden would no doubt like to forget.

On Friday, the Pentagon acknowledged that a drone strike in Afghanistan killed 10 civilians, including seven children, not terrorists. A panel advising the Food and Drug Administration voted to not recommend COVID-19 booster shots for all Americans over age 16, dashing an administration hope. And France announced it was recalling its ambassador to the United States out of anger for being cut out of a secret nuclear submarine deal Biden had struck with the United Kingdom and Australia.

The headlines, all within an hour, underscored the perils for any president from situations that can define a term in office.

Already, Biden has seen public approval numbers trend downward as the pandemic has deepened and Americans cast blame for the flawed U.S. withdrawal from Afghanistan.

The administration had hoped to roll out tougher vaccine guidelines, a new international alliance to thwart China and a recommitment to what Biden has done best: drawing on his years on Capitol Hill and knowledge of the legislative process to cajole fellow Democrats to pass the two far-reaching spending bills that make up the heart of his agenda.

Those ambitions are now more difficult to achieve.

Biden has proclaimed defeating the pandemic to be the central mission of his presidency. But the United States is now averaging more than 145,000 confirmed COVID-19 cases per day, compared with a low of about 8,500 per day three months ago.

The president has tried to shift the blame for the resurgence of cases to the more than 70 million Americans who have not gotten a vaccine and the GOP lawmakers who have opposed his increasingly forceful efforts to push people to get a shot. Aides had hoped for full FDA approval for the boosters, yet the advisory panel only recommended them for those over age 65 or with underlying health conditions or special circumstances.

Biden aides in recent days had quietly expressed relief that the Afghanistan withdrawal — like the war itself for much of its nearly two decades — has receded from headlines. That feeling was shattered Friday afternoon when the Pentagon revealed the errant target for what was believed to be the final American drone strike of the war...

The Mystery of 22-Year-Old Gabby Petito (VIDEO)

My was was telling me about this story last night, when it was really breaking into the big leagues.

You can make hunches about what happened, especially because the young woman's boyfriend --- with whom she was traveling cross-country, visiting the national parks --- has refused to answer questions, and that's after not reporting his girlfriend missing after arriving back in Florida.

At Deseret News, "Florida police say there are holes ‘to be plugged’ in Gabby Petito missing case."

And the Orlando Sentinel, "Police: Missing Florida woman and slain couple unrelated":

A Utah county sheriff said Friday detectives have determined there is no connection between the disappearance of a Florida woman who went missing during a cross-country trip with her boyfriend and a still-unsolved slaying of two women who were fatally shot.

Police in Florida had said Thursday a possible connection was being explored because the women were found dead in the same tourist town of Moab, Utah, where the missing woman, Gabrielle “Gabby” Petito, and her boyfriend Brian Laundrie had an emotional fight to which police had been called.

Petito and her boyfriend Brian Laundrie were in Utah when the victims in the double homicide, Kylen Schulte and Crystal Turner, disappeared, WFLA reported.

Petito and Laundrie were in Moab on Aug. 12.

Body camera video shows the police pulling the couple over after a witness reported seeing them arguing and hitting each other, WFLA reported.

According to the Grand County Sheriff’s Department, Turner, 38, and Schulte, 24, were last seen Friday evening, Aug. 13, at a local tavern in Moab. The two women were found shot to death on Aug. 18 in the South Mesa area of the La Sal Mountains.

Friends of Schulte and Turner told authorities the couple told police someone near their campsite was intimidating them and that “if something happened to them, that they were murdered,” WFLA reported.

 

The Sharp U.S. Pivot to Asia Is Throwing Europe Off Balance

Following-up.

At the New York Times, "In Submarine Deal With Australia, U.S. Counters China but Enrages France":

BRUSSELS — Until this week, the so-called “pivot to Asia” by the United States had been more of a threat than a reality for Europe. But that changed when the Biden administration announced a new defense alliance against China that has left Europe facing an implicit question:

Which side are you on?

It is a question that European leaders have studiously sought to avoid since former President Barack Obama first articulated that America should “pivot” resources and attention to Asia as part of its rivalry with China. European leaders hoped that the relationship between the two superpowers could remain stable and that Europe could balance its interests between the two.

Then the Trump administration sharply raised the temperature with China with tariffs and other trade barriers. And now the Biden administration on Wednesday announced an alliance between the United States, Britain and Australia that would help Australia deploy nuclear-powered submarines in the Pacific — and, in doing so, also tore up a $66 billion deal for Australia to buy a French fleet of diesel-powered subs.

“Europeans want to defer the moment of truth, to not make a choice between the two,” said Thomas Gomart, director of the French Institute of International Relations, or IFRI. “The Biden administration, like the Trump one, is provoking the moment of choice.”

France was enraged. Yet if it was a humiliation — as well as the cancellation of a lucrative defense deal — it possibly did have a silver lining for France’s broader goals. President Emmanuel Macron of France has been Europe’s loudest proponent of “strategic autonomy,” the idea that Europe needs to retain a balanced approach to the United States and China.

“We must survive on our own, as others do,” said Josep Borrell Fontelles, the European Union’s foreign policy chief, echoing the French line.

The French embarrassment — the Americans also announced the submarine deal with little if any warning — came after the disastrous fall of Afghanistan. European allies were furious with the Biden administration, blaming the Americans for acting with little or no consultation and feeding Mr. Macron’s argument that the United States is no longer an entirely reliable security partner.

“The submarines and Afghanistan, it reinforces the French narrative that you can’t trust the Americans,” said Ulrich Speck of the German Marshall Fund in Berlin.

But whether France will succeed in turning this bilateral defeat into a way to promote strategic autonomy is doubtful, analysts suggest. “Many Europeans will see this as a transparent way for the French to leverage their own interests,” said Robin Niblett, director of Chatham House, the London-based research institution.

Even so, there seems little doubt that Europe’s balancing act is becoming trickier to maintain.

“Europe needs to think hard about where it sits and what it does,” said Rosa Balfour, director of Carnegie Europe. A Europe that spends more on defense is to be desired, but it also needs allies — including Britain and the United States, she said. And a Europe that does more to build its own security capacity “is the best way to be listened to more by its partners,” she added...

 

Facebook Knows Instagram Is Toxic for Teen Girls, Company Documents Show

As a professor of teenagers, this is something that's worrisome to me, and I try to keep abreast of what's going on. I'm not young, though, and of course I don't use Instagram, so it's hard. 

This is an excellent piece, at WSJ, "Its own in-depth research shows a significant teen mental-health issue that Facebook plays down in public":

About a year ago, teenager Anastasia Vlasova started seeing a therapist. She had developed an eating disorder, and had a clear idea of what led to it: her time on Instagram.

She joined the platform at 13, and eventually was spending three hours a day entranced by the seemingly perfect lives and bodies of the fitness influencers who posted on the app.

“When I went on Instagram, all I saw were images of chiseled bodies, perfect abs and women doing 100 burpees in 10 minutes,” said Ms. Vlasova, now 18, who lives in Reston, Va.

Around that time, researchers inside Instagram, which is owned by Facebook Inc., were studying this kind of experience and asking whether it was part of a broader phenomenon. Their findings confirmed some serious problems.

“Thirty-two percent of teen girls said that when they felt bad about their bodies, Instagram made them feel worse,” the researchers said in a March 2020 slide presentation posted to Facebook’s internal message board, reviewed by The Wall Street Journal. “Comparisons on Instagram can change how young women view and describe themselves.”

For the past three years, Facebook has been conducting studies into how its photo-sharing app affects its millions of young users. Repeatedly, the company’s researchers found that Instagram is harmful for a sizable percentage of them, most notably teenage girls.

“We make body image issues worse for one in three teen girls,” said one slide from 2019, summarizing research about teen girls who experience the issues.

“Teens blame Instagram for increases in the rate of anxiety and depression,” said another slide. “This reaction was unprompted and consistent across all groups

Among teens who reported suicidal thoughts, 13% of British users and 6% of American users traced the desire to kill themselves to Instagram, one presentation showed.

Expanding its base of young users is vital to the company’s more than $100 billion in annual revenue, and it doesn’t want to jeopardize their engagement with the platform.

More than 40% of Instagram’s users are 22 years old and younger, and about 22 million teens log onto Instagram in the U.S. each day, compared with five million teens logging onto Facebook, where young users have been shrinking for a decade, the materials show.

On average, teens in the U.S. spend 50% more time on Instagram than they do on Facebook.

“Instagram is well positioned to resonate and win with young people,” said a researcher’s slide posted internally. Another post said: “There is a path to growth if Instagram can continue their trajectory.”

In public, Facebook has consistently played down the app’s negative effects on teens, and hasn’t made its research public or available to academics or lawmakers who have asked for it.

“The research that we’ve seen is that using social apps to connect with other people can have positive mental-health benefits,” CEO Mark Zuckerberg said at a congressional hearing in March 2021 when asked about children and mental health.

In May, Instagram head Adam Mosseri told reporters that research he had seen suggests the app’s effects on teen well-being is likely “quite small.”

In a recent interview, Mr. Mosseri said: “In no way do I mean to diminish these issues.…Some of the issues mentioned in this story aren’t necessarily widespread, but their impact on people may be huge.”

He said he believes Facebook was late to realizing there were drawbacks to connecting people in such large numbers. “I’ve been pushing very hard for us to embrace our responsibilities more broadly,” he said.

He said the research into the mental-health effects on teens was valuable, and that Facebook employees ask tough questions about the platform. “For me, this isn’t dirty laundry. I’m actually very proud of this research,” he said.

Some features of Instagram could be harmful to some young users, and they aren’t easily addressed, he said. He added: “There’s a lot of good that comes with what we do.”

What Facebook Knows

The Instagram documents form part of a trove of internal communications reviewed by the Journal, on areas including teen mental health, political discourse and human trafficking. They offer an unparalleled picture of how Facebook is acutely aware that the products and systems central to its business success routinely fail.

The documents also show that Facebook has made minimal efforts to address these issues and plays them down in public.

The company’s research on Instagram, the deepest look yet at what the tech giant knows about its impact on teens and their mental well-being, represents one of the clearest gaps revealed in the documents between Facebook’s understanding of itself and its public position.

Its effort includes focus groups, online surveys and diary studies in 2019 and 2020. It also includes large-scale surveys of tens of thousands of people in 2021 that paired user responses with Facebook’s own data about how much time users spent on Instagram and what they saw there.

The researchers are Facebook employees in areas including data science, marketing and product development who work on a range of issues related to how users interact with the platform. Many have backgrounds in computer science, psychology and quantitative and qualitative analysis.

In five presentations over 18 months to this spring, the researchers conducted what they called a “teen mental health deep dive” and follow-up studies.

They came to the conclusion that some of the problems were specific to Instagram, and not social media more broadly. That is especially true concerning so-called social comparison, which is when people assess their own value in relation to the attractiveness, wealth and success of others.

“Social comparison is worse on Instagram,” states Facebook’s deep dive into teen girl body-image issues in 2020, noting that TikTok, a short-video app, is grounded in performance, while users on Snapchat, a rival photo and video-sharing app, are sheltered by jokey filters that “keep the focus on the face.” In contrast, Instagram focuses heavily on the body and lifestyle.

The features that Instagram identifies as most harmful to teens appear to be at the platform’s core.

The tendency to share only the best moments, a pressure to look perfect and an addictive product can send teens spiraling toward eating disorders, an unhealthy sense of their own bodies and depression, March 2020 internal research states. It warns that the Explore page, which serves users photos and videos curated by an algorithm, can send users deep into content that can be harmful.

“Aspects of Instagram exacerbate each other to create a perfect storm,” the research states.

The research has been reviewed by top Facebook executives, and was cited in a 2020 presentation given to Mr. Zuckerberg, according to the documents.

At a congressional hearing this March, Mr. Zuckerberg defended the company against criticism from lawmakers about plans to create a new Instagram product for children under 13. When asked if the company had studied the app’s effects on children, he said, “I believe the answer is yes.”

In August, Sens. Richard Blumenthal and Marsha Blackburn in a letter to Mr. Zuckerberg called on him to release Facebook’s internal research on the impact of its platforms on youth mental health.

In response, Facebook sent the senators a six-page letter that didn’t include the company’s own studies. Instead, Facebook said there are many challenges with conducting research in this space, saying, “We are not aware of a consensus among studies or experts about how much screen time is ‘too much,’ ” according to a copy of the letter reviewed by the Journal.

Facebook also told the senators that its internal research is proprietary and “kept confidential to promote frank and open dialogue and brainstorming internally.”

A Facebook spokeswoman said the company welcomed productive collaboration with Congress and would look for opportunities to work with external researchers on credible studies.

“Facebook’s answers were so evasive—failing to even respond to all our questions—that they really raise questions about what Facebook might be hiding,” Sen. Blumenthal said in an email. “Facebook seems to be taking a page from the textbook of Big Tobacco—targeting teens with potentially dangerous products while masking the science in public.”

Mr. Mosseri said in the recent interview, “We don’t send research out to regulators on a regular basis for a number of reasons.” He added Facebook should figure out a way to share high-level overviews of what the company is learning, and that he also wanted to give external researchers access to Facebook’s data.

He said the company’s plan for the Instagram kids product, which state attorneys general have objected to, is still in the works...

Still more, if you can read it. 

Tyler Stovall, White Freedom

At Amazon, Tyler Stovall, White Freedom: The Racial History of an Idea.

The Masking of the Servant Class

It's Glenn Greewald, on Substack, "Ugly COVID Images From the Met Gala Are Now Commonplace: While AOC's revolutionary and subversive socialist gown generated buzz, the normalization of maskless elites attended to by faceless servants is grotesque":

From the start of the pandemic, political elites have been repeatedly caught exempting themselves from the restrictive rules they impose on the lives of those over whom they rule. Governors, mayors, ministers and Speakers of the House have been filmed violating their own COVID protocols in order to dine with their closest lobbyist-friends, enjoy a coddled hair styling in chic salons, or unwind after signing new lockdown and quarantine orders by sneaking away for a weekend getaway with the family. The trend became so widespread that ABC News gathered all the examples under the headline “Elected officials slammed for hypocrisy for not following own COVID-19 advice,” while Business Insider in May updated the reporting with this: “14 prominent Democrats stand accused of hypocrisy for ignoring COVID-19 restrictions they're urging their constituents to obey."

Most of those transgressions were too flagrant to ignore and thus produced some degree of scandal and resentment for the political officials granting themselves such license. Dominant liberal culture is, if nothing else, fiercely rule-abiding: they get very upset when they see anyone defying decrees from authorities, even if the rule-breaker is the official who promulgated the directives for everyone else. Photos released last November of California Governor Gavin Newsom giggling maskless as he sat with other maskless state health officials celebrating the birthday of a powerful lobbyist — just one month after he told the public to “to keep your mask on in between bites” and while severe state-imposed restrictions were in place regarding leaving one's home — caused a drop in popularity and helped fueled a recall initiative against him. Newsom and these other officials broke their own rules, and even among liberals who venerate their leaders as celebrities, rule-breaking is frowned upon.

But as is so often the case, the most disturbing aspects of elite behavior are found not in what they have prohibited but rather in what they have decided is permissible. When it comes to mask mandates, it is now commonplace to see two distinct classes of people: those who remain maskless as they are served, and those they employ as their servants who must have their faces covered at all times. Prior to the COVID pandemic, it was difficult to imagine how the enormous chasm between the lives of cultural and political elites and everyone else could be made any larger, yet the pandemic generated a new form of crude cultural segregation: a series of protocols which ensure that maskless elites need not ever cast eyes upon the faces of their servant class.

Last month, a delightful event was hosted by Speaker of the House Nancy Pelosi (D-CA) for wealthy Democratic donors in Napa — the same wine region of choice for Gov. Newsom's notorious dinner party — at which the cheapest tickets were $100 each and a "chair” designation was available for $29,000. Video of the outdoor festivities showed an overwhelmingly white crowd of rich Democratic donors sitting maskless virtually on top of one another — not an iota of social distancing to be found — as Pelosi imparted her deep wisdom about public policy.

Pelosi's donor gala took place as millions face eviction, ongoing joblessness, and ever-emerging mandates of various types. It was also held just five days after the liberal county government of Los Angeles, in the name of Delta, imposed a countywide mask requirement for "major outdoor events.” In nearby San Francisco, where Pelosi's mansion is found, the liberal-run city government has maintained a more restrictive outdoor mask policy than the CDC: though masks were not required for outdoor exercising (such as jogging) or while consuming food, the city's rules for outdoor events required “that at any gathering where there are more than 300 people, masks are still required for both vaccinated and unvaccinated people.” Though Pelosi's fundraising lunch fell below the 10,000-person threshold for LA County's outdoor mask mandate, it may have fallen within San Francisco's mask mandate. Either way, it appears arbitrary at best: how would The Science™ of COVID risk have drastically changed for those sitting with no distancing, at densely packed tables, if there had been a few more tables of Pelosi donors? The CDC's latest guidelines for outdoor events urge people to “consider wearing a mask…for activities with close contact with others who are not fully vaccinated.”

Trying to find a cogent scientific rationale for any of this is, by design, virtually impossible. The rules are sufficiently convoluted and often arbitrary that one can easily mount arguments to legally justify the Versailles-like conduct of one's favorite liberal political leaders. Beyond the legalities, everything one does can be simultaneously declared to be responsible or reckless, depending on the political needs of the moment. But what was most striking about Pelosi's donor event was not the possibility of legal infractions but rather the two-tiered system that was so viscerally and uncomfortably obvious.

Even though many of the wealthy white donors had no food in front of them and were not yet eating, there was not a mask in sight — except on the faces of the overwhelmingly non-white people hired as servants, all of whom had their gratuitous faces covered. Servants, apparently, are much more pleasant when they are dehumanized. There is no need for noses or mouths or other identifiable facial features for those who are converted into servile robots...

Still more.

 

Newsom Prevailed on Strength of Coronavirus Response, But Failed on Everything Else. His Political Career's Still an Uphill Climb

California sucks. 

Come for the weather. Leave for the braindead leftist public policy failures.

At LAT, "A California in crisis awaits Newsom after landslide win in recall":

SACRAMENTO — Standing in an elementary school classroom in Oakland, Gov. Gavin Newsom paused when asked if he felt vindicated after voters saved his political career the night before and handed him a landslide victory in the recall election.

“I feel enlivened. I feel more energized, and I feel a deep sense of responsibility because people are counting on us and they need us. They need government, effective government,” Newsom said. “I’m also mindful of this: Challenges are in abundance in these positions.”

California voters and Newsom’s political allies stepped up to defend the governor from the GOP-led recall, delivering a win that helps pave the way to his reelection next year. Battle-tested but not bruised, the 53-year-old reaffirmed the mandate he walked into the governor’s office with three years ago after notching what appeared to be an even greater margin of victory Tuesday.

But just as wildfires, punishing drought, record homelessness, a housing shortage, a once-in-a-generation pandemic and a learning curve at the Capitol have challenged much of his term in office, Newsom returns to work facing those same problems and more.

“He has the same things to deal with today that he dealt with yesterday, minus the recall election,” said Dana Williamson, who worked as Cabinet secretary to former Gov. Jerry Brown. “I would think the election gives him a boost of confidence. He’s coming out of this in a stronger place than when he entered it, and it leveled his political playing field.”

With at least $24 million in his 2022 reelection campaign account and an activated army of union volunteers, Newsom will be a formidable incumbent when voters return to the polls next year, raising doubts that a well-known intraparty rival will step up to challenge him.

Newsom could also end up running against a cast of Republican candidates similar to the one he trounced Tuesday, some of whom have already announced their intentions to challenge him.

“There is no reelect after this,” said Dustin Corcoran, chief executive of the California Medical Assn.

Newsom’s campaign framed the recall as a proxy war against Trumpism playing out in a deep-blue state, shifting the focus off Newsom and his own record.

The governor took advantage of Larry Elder’s candidacy to contrast his leadership during the pandemic to the conservative talk show host’s promises to rescind mask mandates in schools and reverse the vaccine and testing rules Newsom ordered for healthcare workers, state employees, and teachers and school staff.

The decision to attack Elder’s position on vaccines proved smart in California and provided Newsom with an opportunity to tap into fears about the Delta variant and frustration with the unvaccinated. A recent preelection poll from the Public Policy Institute of California found strong support for requiring proof of vaccines for large outdoor events and to enter indoor businesses and predicted 80% of likely voters would be vaccinated.

“The campaign seized on that to create a simple choice for voters,” said Ace Smith, one of Newsom’s political advisors.

A week before the election, Smith argued that Sept. 14 would give Newsom “a clear mandate not only against the recall, but for sanity on something as important as public health.”

As a “final seal of approval” for his handling of the pandemic, Newsom’s triumph will also make it harder for Republicans to gain any traction during his reelection campaign with claims that he was too restrictive or took away personal freedom, said Juan Rodriguez, Newsom’s campaign manager.

The first governor in the nation to issue a statewide stay-at-home order, Newsom might be emboldened by Tuesday’s win to accelerate his approach to fighting the COVID-19 pandemic.

Democratic strategist Robin Swanson said many Californians, even Newsom supporters, are still frustrated from the school closures and shuttered businesses. She said the governor would be smart to acknowledge those feelings.

“People want to be heard in elections and the most gracious victors hear what their opponents say and hear what people say who didn’t vote for them,” Swanson said. “That’s how you build the sort of unity and healing that our state needs.”

In his brief election night speech, Newsom said he was humbled and grateful to the Californians who exercised their right to vote and expressed themselves “by rejecting the division, by rejecting the cynicism, by rejecting so much of the negativity that’s defined our politics in this country over the course of so many years.”

He extended more of an olive branch Wednesday...

Keep reading.

 

Nicki Minaj Causes the Establishment to Go DEFCON One

This story's a laugh riot.

From Jim Geraghty, at National Review.

In Submarine Deal With Australia, U.S. Counters China but Enrages France

Following-up, "Why Australia Bet the House on Lasting American Power in Asia."

At NYT, "In Submarine Deal With Australia, U.S. Counters China but Enrages France":

PARIS — President Biden’s announcement this week of a deal to help Australia deploy nuclear-powered submarines has strained the Western alliance, infuriating France and foreshadowing how the conflicting American and European responses to confrontation with China may redraw the global strategic map.

In announcing the deal on Wednesday, Mr. Biden said it was meant to reinforce alliances and update them as strategic priorities shift. But in drawing a Pacific ally closer to meet the China challenge, he appears to have alienated an important European one and aggravated already tense relations with Beijing.

France has reacted with outrage to news that the United States and Britain would help Australia develop submarines, and that Australia would withdraw from a $66 billion 2016 deal to buy French-built submarines. At its heart, the diplomatic storm is also a business matter — a loss of revenue for France’s military industry, and a gain for American companies.

Jean-Yves Le Drian, France’s foreign minister, told Franceinfo radio that the submarine deal was a “unilateral, brutal, unpredictable decision” by the United States, and he compared the American move to the rash and sudden policy shifts common during the Trump administration.

France canceled a gala scheduled for Friday at its embassy in Washington to mark the 240th anniversary of a Revolutionary War battle.

“This looks like a new geopolitical order without binding alliances,” said Nicole Bacharan, a researcher at Sciences Po in Paris. “To confront China, the United States appears to have chosen a different alliance, with the Anglo-Saxon world separate from France.” She predicted a “very hard” period in the old friendship between Paris and Washington.

The deal also seemed to be a pivot point in relations with China, which reacted angrily. The Biden administration appears to be upping the ante with Beijing by providing a Pacific ally with submarines that are much harder to detect than conventional ones, much as medium-range Pershing II missiles were deployed in Europe in the 1980s to deter the Soviet Union.

A statement from Mr. Le Drian and Florence Parly, France’s Armed Forces minister, called “the American choice to exclude a European ally and partner such as France” a regrettable decision that “shows a lack of coherence.”

The Australian vessels would have nuclear reactors for propulsion, but not nuclear weapons.

France and the rest of the European Union are intent on avoiding a direct confrontation with China, as they underscored on Thursday in a policy paper titled the “E.U. Strategy for Cooperation in the Indo-Pacific,” whose release was planned before the fracas.

It said the bloc would pursue “multifaceted engagement with China,” cooperating on issues of common interest while “pushing back where fundamental disagreement exists with China, such as on human rights.”

The degree of French anger recalled the acrimonious rift in 2003 between Paris and Washington over the Iraq war and involved language not heard since then.

“This is not done between allies,” Mr. Le Drian said. His comparison of Mr. Biden to Mr. Trump appeared certain to be taken in the White House as a serious insult.

And France said it had not been consulted on the deal. “We heard about it yesterday,” Ms. Parly told RFI radio.

The Biden administration said it had not told French leaders beforehand, because it was clear that they would be unhappy with the deal.

The administration decided that it was up to Australia to choose whether to tell Paris, said a U.S. official who spoke on the condition of anonymity because he was not authorized to address the matter publicly. But he allowed that the French had a right to be annoyed, and that the decision was likely to fuel France’s desire for a European Union military capability independent of the United States...

 

Why Australia Bet the House on Lasting American Power in Asia

So you would think.

I'm surprised the U.S. has waited this long to bring the Aussies into the nuclear loop.

At NYT, "Less than three years ago, Australia’s leader said his country need not choose between the U.S. and China. A nuclear submarine deal shows that much has changed since then":

SYDNEY, Australia — When Scott Morrison became Australia’s prime minister three years ago, he insisted that the country could maintain close ties with China, its largest trading partner, while working with the United States, its main security ally.

“Australia doesn’t have to choose,” he said in one of his first foreign policy speeches.

On Thursday, Australia effectively chose. Following years of sharply deteriorating relations with Beijing, Australia announced a new defense agreement in which the United States and Britain would help it deploy nuclear-powered submarines, a major advance in Australian military strength.

With its move to acquire heavy weaponry and top-secret technology, Australia has thrown in its lot with the United States for generations to come — a “forever partnership,” in Mr. Morrison’s words. The agreement will open the way to deeper military ties and higher expectations that Australia would join any military conflict with Beijing.

It’s a big strategic bet that America will prevail in its great-power competition with China and continue to be a dominant and stabilizing force in the Pacific even as the costs increase.

“It really is a watershed moment — a defining moment for Australia and the way it thinks about its future in the Indo-Pacific region,” said Richard Maude, a former Australian security official who is now a senior fellow at the Asia Society Policy Institute.

“It does represent really quite sharp concerns now in the Morrison government about a deteriorating security environment in the region, about China’s military buildup and about China’s willingness to use coercive power to pursue national interests,” he said.

“This is utterly irresponsible conduct,” Mr. Zhao said.

For the United States, the decision to bolster a close Asia-Pacific ally represents a tangible escalation of its efforts to answer China’s rapid military growth. The Defense Department said in its most recent report to Congress that China now had the largest navy in the world, measured in numbers of vessels, having built a fleet of approximately 350 ships by 2019, including a dozen nuclear submarines.

By comparison, the U.S. Navy has around 293 ships. While American vessels tend to be larger, China is also catching up with aircraft carriers while surpassing the United States with smaller, agile ships.

At the same time, China has moved aggressively to secure locations for outposts and missiles, building up its presence on islands that it constructed in the South China Sea. Security analysts believe that Australia would be likely to use nuclear-powered submarines to patrol the important shipping lanes there, in waters also claimed by Vietnam, the Philippines and Malaysia. The choice of vessel, they said, sends an unmistakable message.

“Nothing is more provocative to China than nuke stuff and submarine stuff,” said Oriana Skylar Mastro, who is a fellow at the Freeman Spogli Institute for International Studies at Stanford University and at the American Enterprise Institute. “China’s so weak in anti-submarine warfare in comparison to other capabilities.”

“To me,” said Ms. Mastro, a regular visitor to Australia, “it suggests that Australia is willing to take some real risks in its relationship to stand up to China.”

American and Australian officials, seeking to douse proliferation concerns, emphasized that the submarines were nuclear-powered but had nothing to do with nuclear weapons. The promise of eight American vessels coincided with Australia’s cancellation of a contract for 12 conventional French-designed submarines that had been delayed and running over budget. French officials reacted angrily, calling the abandonment of the deal a betrayal of trust...

The French are the biggest fucking babies. *Eye-roll.*

Still more.

 

Bernard Lewis, What Went Wrong?

At Amazon, Bernard Lewis, What Went Wrong? What Went Wrong?: The Clash Between Islam and Modernity in the Middle East.

House Democrats Consider 26.5% Corporate Tax Rate (VIDEO)

The top marginal tax rate for individuals could rise to a whopping 46 percent! Dang, maybe higher!  

Meanwhile, AOC's out the Met gala with a "tax the rich" gown, wtf!

Absolutely loathsome. I try not to hate --- anything or anyone, as it's against my values and not good for my health.

But Democrats make it hard, man.

At WSJ, "Lawmakers are expected to propose a smaller capital-gains tax increase than Biden wants":

WASHINGTON—House Democrats expect to propose raising the corporate tax rate to 26.5% from 21% and imposing a 3-percentage-point surtax on individual income above $5 million, according to two House Democratic aides familiar with the plans.

The tax increases would be part of the House Ways and Means Committee’s plans to pay for the party’s priorities in a fast-moving budget bill. Those items include an expanded child tax credit, a national paid-leave program and renewable-energy tax breaks.

House Democrats also are considering raising the minimum tax on U.S. companies’ foreign income to 16.5% from 10.5% and increasing the top capital-gains tax rate to 28.8% from 23.8%. Lawmakers are also expected to raise money by expanding Internal Revenue Service enforcement and might include other tax increases on corporations and high-income individuals.

Until now, House Democrats have been coy about their tax-increase plans as they try to navigate between moderates worried about the economic impact of raising taxes and progressives eager to tax the rich and expand the social safety net. Rep. Richard Neal (D., Mass.), the committee chairman, has said that detailing tax-increase plans too soon can give too much time for opposition to build.

The plans, aimed for a Ways and Means Committee vote later this week, will face challenges as Democrats try to determine how far they are willing to go in reversing the 2017 tax cuts and imposing stiffer burdens on corporations and high-income households.

Some Senate Democrats, including Joe Manchin of West Virginia and Mark Warner of Virginia, have said they don’t want to raise the corporate tax rate above 25% from its current 21%. The Biden administration and Democrats such as Senate Finance Committee Chairman Ron Wyden of Oregon have advocated for far more aggressive capital-gains tax increases than congressional Democrats are willing to support.

Andrew Bates, a White House spokesman, praised the committee’s ideas and said the administration looks forward to working with lawmakers.

“This meets two core goals the president laid out at the beginning of this process—it does not raise taxes on Americans earning under $400,000 and it repeals the core elements of the Trump tax giveaways for the wealthy and corporations that have done nothing to strengthen our country’s economic health,” he said Sunday.

The committee hasn’t yet released details of its proposed changes, effective dates for each provision or estimates of how much money each piece would raise. The proposals could change significantly as lawmakers debate and vote on them.

On Sunday, tax lobbyists and congressional aides were circulating a four-page document that roughly spells out how Democrats would get to $3.5 trillion to pay for their spending and tax cuts over a decade.

The document doesn’t say how final a plan it is or whether Democratic lawmakers have agreed to it. By showing the scale of the tax increases needed to hit that budget target, the document could prompt lawmakers to scale back their aims or issue debt to cover some of the cost.

It includes $1 trillion in tax increases on individuals, $900 billion on corporations, $700 billion from drug-pricing policy changes, and $120 billion from tougher tax enforcement. Adding miscellaneous other changes and an assumption that the economy will grow reaches $3.5 trillion.

Democrats have a narrow path. They can lose no more than three votes in the House and none in the Senate, and lawmakers such as Mr. Manchin are aiming to shrink the bill from the $3.5 trillion target that Democratic leaders have set.

Democrats agree broadly that they are willing to raise the corporate tax rate and the top individual tax rate. But other areas, particularly capital gains and international tax rules, have proven trickier.

The Biden administration’s capital-gains plan has been facing sustained opposition from rural Democrats. The administration plan would impose taxes on unrealized gains at death, with a $1 million per-person exemption and special rules to protect farms and family owned businesses. Under the Biden plan, the top tax rate would increase to 43.4%, the same as ordinary income.

But those protections haven’t swayed lawmakers from rural areas, despite the Biden administration’s arguments that foregoing change would allow billionaires to escape income taxation on their gains at death. Under current law, people who die with unrealized gains might owe estate taxes, but not income taxes. Their heirs pay income taxes only when they sell and only on gains since the prior owner’s death.

In the document circulating Sunday, those changes other than a smaller capital-gains rate increase aren’t included.

As outlined in the document, high-income households would face a series of tax increases. The top rate would increase to 39.6% from 37%, with that top bracket starting at $400,000 for individuals and $450,000 for married couples. Those thresholds are lower than what the Biden administration has proposed.

The committee also could pare back a tax break for businesses that pay their taxes on their owners’ individual tax returns. Those companies, such as partnerships and S corporations, would face caps on a deduction they got in the 2017 tax law.

According to the document, many business owners also would begin facing a 3.8% tax on their profits. Currently, a tax at that rate applies to wages of high-income individuals and to passive income, but active business profits are exempt. The proposal, like the administration’s plan, would impose that 3.8% tax on high-income business owners.

The combination of those changes would mean that some taxpayers could face a top marginal federal income-tax rate of 46.4%...

Obscene.  

Biden Campaigns for Newsom at Long Beach City College (VIDEO)

My school.

The security was intense.

At LAT, "In final campaign push with Newsom, Biden says ‘eyes of the nation’ are on California recall":

President Biden joined Gov. Gavin Newsom on Monday night for a final campaign stop in Long Beach on the eve of the recall election, lending his firepower to fight against the governor’s possible ouster and underscoring the national importance of defeating the effort.

“California, I’m not sure you know it but if you didn’t know it, you should,” Biden said. “This is not hyperbole: The eyes of the nation are on California. Because the decision you’re about to make isn’t just going to have a huge impact on California, it’s going to reverberate around the nation. And quite frankly, it’s not a joke, around the world.“ The rally capped a long day in the West for the president, and a months-long campaign for Newsom and his opponents. Earlier in the day, Biden traveled to Boise, Idaho, and Sacramento to survey wildfire damage and discuss his administration’s response.

A pre-show lineup of mariachi music and dignitaries from across Democratic Party ranks — including Democratic National Committee Chairman Jaime Harrison, California Democratic Party Chair Rusty Hicks and state elected officeholders — rallied the crowd of more than 1,000 invited labor representatives, college students and other Democrats at Long Beach City College before the president and governor’s arrival shortly before 7 p.m.

The president’s stop in California marked the closing campaign act for Newsom, who has touted support from several high-profile Democrats in recent weeks, including former President Obama, Sens. Elizabeth Warren of Massachusetts and Amy Klobuchar of Minnesota and independent Sen. Bernie Sanders of Vermont. Last week, Vice President Kamala Harris returned to California to court voters on behalf of the governor.

In a 15-minute address, Biden praised Newsom’s handling of the pandemic and urged attendees to vote for the governor because of his support for reproductive rights and efforts to mitigate climate change.

“Folks, send a message to the nation: Courage matters, leadership matters, science matters. Vote to keep Gavin Newsom,” Biden said.

The Biden administration has a vested interest in the recall’s outcome. A Newsom victory could lift Democrats after a politically challenging several weeks for the president, whose popularity has taken a hit due to the COVID-19 pandemic’s resurgence and the chaotic withdrawal from Afghanistan. The election of a Republican governor could be devastating to Democrats nationwide, with the possibility that the new governor would appoint a replacement for Sen. Dianne Feinstein (D-Calif.) should she retire and leave an open seat in theSenate.

On Monday, the president and governor pointedly attacked the recall as an effort led by Republicans supporting former President Trump. Biden likened conservative talk show host Larry Elder, the leading Republican candidate in the race, to Trump and told the audience “there’s too much at stake” to let him become governor.

“We may have defeated Donald Trump, but we have not defeated Trumpism,” Newsom said to the crowd before Biden took the stage. “Trumpism is still on the ballot in California and that’s why it’s so important, not just for all of us here 40 million Americans strong in the nation’s largest and most populous state, but also to send a statement, all across the United States of America, that Trumpism has no place here, and Trumpism will be defeated all across the United States of America, because we’re better than that.”

Recent polls suggest Newsom probably has little to worry about, after an early split among voters a few weeks ago developed into a strong showing of support for the first-term governor. A UC Berkeley Institute of Governmental Studies poll, cosponsored by the Los Angeles Times, released Friday showed that 60.1% of likely voters surveyed oppose recalling Newsom compared with 38.5% in favor of ousting the governor.

A crowd of pro-recall protesters gathered outside the Long Beach event Monday, chanting “Recall Newsom!”

“First Vice President Harris, now President Biden: it is baffling and insulting that Gavin Newsom would want either of them here campaigning to save his job while California children, women and families remain abandoned in Afghanistan by this Administration,” California Republican Party Chairwoman Jessica Millan Patterson said in a statement following the event. “It’s clear protecting those they were elected to serve comes second to politics. Lucky for Californians, we have a chance tomorrow to recall Gavin Newsom and replace him with a leader who finally puts their needs first.”...

Also at CBS 8 San Diego, "President Biden visits California in support of Governor Newsom ahead of recall election."

Colonial-Era Royal Carriage Stirs Up Modern Backlash in Netherlands

So lame. *Eye-roll.*

At the New York Times, "The “Golden Coach,” built for Queen Wilhelmina of Holland in 1896, is emerging as a new focus of debate over slavery, colonialist oppression and history":

AMSTERDAM — In 1896, the city of Amsterdam decided to build Queen Wilhelmina a very special gift: a carriage covered in gold. The “Golden Coach” was designed to represent the entire kingdom and its resources, with leather from Brabant, cushions filled with flax from Zeeland and teak from the Dutch colony of Java.

A prominent Dutch artist of the era, Nicolaas van der Waay, was commissioned to make panel paintings on all four sides. One of them, “Tribute from the Colonies,” depicts a virgin on a throne. On the left, Africans in loin cloths bow down before her. On the right, Southeast Asians in colorful batiks present her with gifts, as representations of the Dutch East Indies colony.

All of these component parts glorifying the empire would have been appreciated by most Dutch people in that era. But it is precisely these elements — reminders of slavery and colonial oppression — that make the carriage a source of pain in the Netherlands, particularly for descendants of formerly colonized people.

In the context of the worldwide Black Lives Matter protests, the coach has become a focus of anti-colonialist and antifascist protest. The controversy is an echo of similar debates in the United States over Confederate statues and other monuments, and in Europe over monuments honoring colonialists and slave traders.

An online petition to retire the Golden Coach has received more than 9,000 signatures.

The coach was first used in 1898 to carry Queen Wilhelmina to what the Dutch call her “inauguration,” eight years after she became queen at age 10. In recent years, the Golden Coach has been used primarily for the ceremonial opening of the Dutch Parliament in The Hague, and occasionally for weddings and coronations. Since the 1960s, royal trips in the carriage have often been met with street protests.

It was last used in 2015, without incident, after which it underwent a five-year, $1.4 million renovation before it was put on display at the Amsterdam Museum, where it will remain through Feb. 27, 2022.

“We must finally end this practice of parading colonial images as displays of power,” Sylvana Simons, a member of Parliament and the founder and leader of an anti-racist political party, BIJ1, said in June.

Gideon van Meijeren, a lawmaker with the Forum for Democracy, a right-wing populist party, had no patience with that. “We must not allow ourselves to be emotionally blackmailed by a small group of pushy extremists who see racism under every stone,” he said.

His comment echoed the 2020 Twitter sentiments of a populist Dutch politician, Geert Wilders, who characterized efforts to decommission the coach, known in Dutch as the Gouden Koets, as “left-wing, antiracism terror.” He continued, using a slang term for drop dead: “I say: Don’t bow, don’t kneel, let them all get the rambam!”

Last month, Emile Schrijver, director of the Jewish Cultural Quarter, wrote an opinion piece in the Amsterdam daily Het Parool, calling the coach “an outdated and unacceptable glorification of a colonial sense of superiority,” which should be decommissioned and permanently housed in a museum.

On July 16, King Willem-Alexander addressed the subject at a news conference, saying he was “listening” to public forums on the matter organized by the museum. “The discussion is ongoing,” he added. The carriage is scheduled to return to The Hague after the exhibition. “You will hear from us then,” he said.

The Golden Coach was hoisted over the top of the museum by crane in June for the grand opening of the exhibition, attended by the king, and is now displayed in a large glass box in the inner courtyard. The exhibition exploring its history from its 19th-century conception fills six rooms within the museum, with another room devoted to visual responses to the coach by 15 contemporary artists.

What will happen to it thereafter — whether to put it back in service to the king and queen; or keep it in the museum with lots of explanatory content; or store it somewhere out of sight; or destroy it — has become a matter of intense public debate. Ultimately, the decision will be made by the royal family...

Nine-thousand signatures, c'mon!

"Rambam" is right, sheesh.

 

Nearly Half of Californians Report Lasting Effect of 9/11

Actually, the number should be higher. 

What is wrong with these people.

At the Los Angeles Times, "Poll: Nearly half of Californians say 9/11 had lasting impact on their lives":

Two decades after the Sept. 11 terrorist attacks, a majority of Californians believe the surveillance laws passed in its aftermath were justified, while the state’s most conservative and most liberal voters are more skeptical, according to a new poll.

The survey from the Berkeley Institute for Governmental Studies, in partnership with the Los Angeles Times, found that the events of that day remain a vivid memory for three-quarters of the state’s voters, and nearly half say 9/11 has had a lasting effect on themselves or their families.

“It was a demarcation point in American life,” said Mark DiCamillo, the poll’s director. “Here we are 20 years later ... going through long lines at the airport, increased security. It all stems back from that day.”

A sizable number of California voters say they have been improperly treated because of increased safety measures. One in four voters report being harassed during security screenings at airports, for example. There is little difference between how Democrats and Republicans say they have experienced mistreatment, but substantial difference among racial and ethnic backgrounds. Roughly 25% of white, Latino and Asian voters in California say they have been harassed, compared with 39% of Black voters and 51% of American Indian/Native American respondents.

Still, the findings show that the immediacy of 9/11 is beginning to fade from Californians’ collective memory. Although roughly 90% of Californians over 50 say they have a clear recollection of that day — when terrorists hijacked four airplanes to attack targets in the U.S. — the number dwindles to less than 20% among those under 30, who were children or not yet born when the assaults occurred.

Young Californians are far less likely to say the events of Sept. 11 had a lasting effect on themselves or their families. Overall, voters in the state were nearly evenly split; 47% said they or their families experienced an enduring effect from the attacks, and 52% did not.

Voters under 40 are also more wary of the federal laws adopted after the attacks, which gave law enforcement more authority to conduct surveillance of the public. Less than half of those younger Californians say the policies are justified, compared with majorities of voters age 40 and older, with support climbing to 75% among people over 75.

Overall, 56% of the state’s voters back such laws, and 22% say the measures are unjustified with another 22% holding no opinion.

Attitudes do not neatly conform to partisan leanings. Republicans and Democrats support the laws in equal measure (roughly 60%), and half of voters with no party preference say the same.

Voters on the extremes of the ideological spectrum — strong conservatives and strong liberals — are less likely than moderate voters to see the policies as justified. And the share of voters who had no opinion on the laws climbed as their level of education increased; 29% of those with postgraduate degrees said they had no opinion, compared with 9% who did not have a high school degree.

Such a pattern is unusual among the most highly educated respondents, who are more likely to hold defined views, DiCamillo said.

In this case, the merit of surveillance laws “is a more complicated issue,” he said. “It’s not a straightforward yes or no.”

The findings also underscore how some views about the lasting impact of 9/11 defy the trend of hyper-polarization that has crept into nearly every corner of American life. Although party affiliation has some influence on Californians’ perspectives, DiCamillo said it has “kind of a modest influence.”

“It’s there, but lurking in the background,” he said, a vast difference from most topics he polls on, where there’s “just unbelievable partisan differences on viewing the realities of American life.”

Similarly, Democrats and Republicans report comparable attitudes about how fears of a terrorist attack influence their behavior. Twenty-one percent of Democrats and 17% of Republicans say they have skipped going to a theme park, sports stadium or large entertainment venue because of such safety concerns; 1 in 5 voters with no party preference report the same...

Still more.

 

9/11, Twenty Years Later

From Brian Stewart, at Commentary, "A new book highlights the enduring failure of liberalism’s approach to terrorism."

Stewart reviews Spencer Ackerman's, Reign of Terror: How the 9/11 Era Destabilized America and Produced Trump.

In doing so, he focuses a scorching microscope on the evil (but not new) anti-Americanism that has poisoned American politics in the wake of the September 11 attacks. 

Remembering 9/11 With Taliban Victory

From American Military News, at Pamela Geller's:

What we remember and forget on 9/11. The boy clings to the undercarriage of an evacuation plane leaving Kabul.

Remember Todd Beamer of United 93. His heroism on 9/11 drew from a lifetime of faith and character.

The Bush White House reveals its unfiltered 9/11 story in new documentary. The documentary “9/11: Inside the President’s War Room” looks at how the Bush White House responded to the events of Sept. 11, 2001, by interviewing officials about how they reacted in real time to events throughout the day.

Between then and now, they did not die in vain. I was among the first to parachute into Afghanistan in 2001. This is how I will remember the war.

The tragic price of forgetting 9/11. We will never forget. That was the solemn promise we heard again and again from our nation’s leaders after the devastation of 9/11.

Biden’s Afghan Disaster

SECDEF: al-Qaida may seek comeback in Afghanistan. The Taliban had provided al-Qaida with sanctuary while it ruled Afghanistan from 1996 to 2001.

Biden is embracing a redefinition of war — but not an alternative to war. For those of us present at the beginning of the war on terrorism, the effective surrender of Afghanistan to the Taliban just in time for the 20th anniversary of the 9/11 attacks has been a very jagged pill.

US Afghanistan withdrawal becomes ammo for disinformation attacks. The U.S. withdrawal from Afghanistan has given NATO’s adversaries ammunition for disinformation attacks intended to sow doubt about America’s reliability as a security partner, officials here say.

Army chief calls for Afghanistan review: ‘Let the cards fall where they fall.’ The Army’s chief of staff wants a review of the decisions that led to the fall of Kabul and the U.S. military’s withdrawal.

Countries are establishing relations with the Taliban even though none has offered formal recognition of the militant government. Nearly a month after its takeover, there has been no formal recognition of the Taliban as the legitimate government of Afghanistan. But that step appears increasingly irrelevant, at least for the short and medium term, as countries around the world have established varying degrees of relations with the militant regime.

AFGHAN EVACUATION

White House approves ‘partnership’ with vets evacuating U.S. citizens, Afghan allies. The White House has approved a recommendation by the nation’s top military officer that the administration create a “public/private partnership” with the ad hoc groups that have been working to evacuate American citizens and at-risk Afghans from the country, two State Department officials told POLITICO.

Dozens of Americans, other Westerners, to fly from Kabul on commercial flight. The large group of foreigners would depart Thursday on a Qatar Airways flight. Americans refuse to leave Afghanistan without their families as evacuation flights resume. In the days and weeks before the U.S. military’s hectic departure from Afghanistan, two former interpreters for the American military already resettled in the United States — one a naturalized U.S. citizen, the other a holder of a green card — journeyed back into the war zone to rescue stranded female relatives.

National Security

A ‘persistent, proximate threat’: Why the Navy is preparing for a fight under the sea. As Russia and China bolster their own submarine fleets and capabilities, the U.S. Navy has renewed its focus on undersea threats and has labeled anti-submarine warfare a priority for all sailors — and perhaps some Marines, too.

China, Russia loom over routine air operations across the globe. “What happens when our diplomats no longer have the might of the U.S. military or our economy as their backstop?” said Chief of Staff Gen. Charles “CQ” Brown.

The world 9/11 created: The waning of the American superpower. The aftermath of the Sept. 11, 2001, attacks marked the height of a particular American moment on the world stage.

China Threat

Taiwan commissions homemade ‘carrier killer’ warship. Taiwan’s president oversaw the commissioning of a new domestically made warship Thursday as part of the island’s plan to boost indigenous defense capacity amid heightened tensions with China.

Another Japan-based F-35 squadron is ready for operations. A second U.S. Marine Corps squadron in Japan has declared its F-35B fighters are ready for operations, less than a year after officially kicking off the process of transitioning to the stealthy fifth-generation aircraft.

Military

Less door-kicking, more resistance: Inside Army SOF’s return to unconventional warfare. For much of the past two decades, the American public has associated the Army’s special operations forces with counterterrorism, often conjuring images of night-time direct action raids.

Pentagon Watch

YES. THEY ARE – Army chief: We’re not pushing critical race theory. Just one day after the removal of Richmond’s Robert E. Lee statue, Army Chief of Staff Gen. James McConville pushed back on claims that the military is attempting to “indoctrinate” troops into critical race theory.

Who Is Responsible for the Darkness That Has Descended on Us?

From David Horowitz, at FrontPage Magazine, "The Treason Party":

The late author Susan Sontag once famously said, “Communism is fascism with a human face.” A more perfect description of what the Democrat Party has become would be hard to come by. For five years the Democrats have focused their energies on laying the foundations of a communist economy and a one-party state. In pursuit of the latter, they have tried to abolish the electoral college, change the election laws to undermine the integrity of the voting system, give non-citizens the right to vote, eliminate voter I.D.’s which connect legitimate voters to their ballots, pack the Supreme Court, end the filibuster, pass legislation that would put control of presidential elections in the hands of the Democrat-favoring Washington bureaucracy and remove that control from the fifty states, as the Constitution now requires.

These efforts led to massive irregularities in the presidential election results that put the brain-damaged, pathological liar in the White House and led directly to the crises on the southern border, in America’s streets, and in Afghanistan. They were accompanied by a campaign to demonize former President Trump and the 74 million Americans who voted for him as “white supremacists” and “cultists.” This was itself a dagger aimed directly at the heart of the democratic process which depends on respect for the political opposition and compromise on legislation. If an opposing political party is placed beyond the pale, the inevitable result is a one-party state.

Character assassination has become the Democrats’ first weapon of choice, with Trump’s multiple bogus impeachments providing examples of how far Democrats are prepared to go to tear up the Constitution and two-hundred and forty years of American political tradition. Trump is no longer president but as a private citizen he is still the target of a Pelosi “commission” or “committee,” stacked completely with members who voted to impeach him, whose sole purpose is to convict Trump of inciting a fake “insurrection” in an attempt to overthrow the government of the United States. This is one more despicable effort to demonize Trump and his 74 million voters as “domestic terrorists” and therefore enemies of America to be dealt with as such.

The same result is the purpose of Critical Race Theory, the 1619 Project and the Black Lives Matter racist narratives, developed by American Marxists, currently being inflicted on all the men and women who have volunteered to defend their country in America’s armed services. This travesty comes courtesy of a General Staff deliberately politicized by the Obama administration. The consequence of training enlisted personnel to view America as a racist slave state founded in 1619, which has racism in its DNA (as Obama proclaimed) and is “systemically racist” (as Biden maintains) is to undermine military morale and program soldiers to regard “white America” as the enemy rather than the Islamic terrorists who seek to murder and destroy us.

Yet this demonizing creed was the preoccupation of Secretary of Defense Lloyd Austin and Joint Chiefs’ Chairman General Mark Milley in the months they should have been focused on the withdrawal from Afghanistan and the potential massacre of Americans and their Afghan allies if the withdrawal wasn’t properly planned.

Inevitably that withdrawal was not properly planned. If the Chinese Communists had used their hammer over Joe Biden to dictate his decisions, the suicidal choices for which Biden is responsible wouldn’t be one iota different from the ones he actually made. No one in his or her right mind would have withdrawn American troops and abandoned American bases (and their weaponry) first, and then depended on the good will of Taliban terrorists not to behead the thousands of Afghans who had helped us during the twenty years we occupied their country.

“Partnering” with the Taliban, legitimizing them as a responsible government are the latest capitulations committed by Biden’s fascist-with-a-human face regime. Their cover for this betrayal is that the Taliban has changed and will be a responsible partner.

But here is what the religious zealots of the Taliban actually say: “We are the Taliban and this is our way and this will be our way till Judgement Day.” To encourage Biden’s treachery the Taliban’s spokesman put forward the reasonable-sounding offer to respect our culture if we will respect theirs. But what is their culture? Their culture is to throw acid in the face of any woman whose required Burka shows too much flesh, and to murder them if they are guilty of “fornication” - after a trial in which the jury is all male. Their culture is to behead an entire family in front of its father and then to behead him for working for the Americans. This atrocity occurred during the Kabul airlift after Joe Biden had made these barbaric killers the security for America’s withdrawal.

And it’s worse. Fearing America’s military might, which Joe Biden was busily crippling, the Taliban had actually offered America the privilege of providing the security for its withdrawal, which would have saved countless lives. Joe Biden rejected the offer.

In normal times, the remedy for Biden’s treason would be a firing squad or a life-term in a military prison. Today, who knows? Not a single general has been court-martialed for this disgraceful and dangerous surrender of American power, pride and national security. It is a surrender that will cost the lives of countless innocents not only in Afghanistan but around the world and in America itself. Biden’s response to this debacle? Full steam ahead and pretend defeat is - in Joe’s words - “an amazing success.” This is exactly the kind of response one would expect from a one-party regime.

After the Taliban took Kabul, and the country fell into the grips of Islamic barbarians, the Democrats in Congress were sitting up late into the night in the Capitol working on another emergency. They were putting together a $3.5 to $5 trillion bill to socialize the economy, and make every man, woman, and child in America dependent on the state. Their leader in this communist enterprise was Senator Bernie Sanders a lifelong half-wit supporter of Communist dictatorships and their failed economies, who is now the chairman of the Senate Budget Committee.

The Democrats proposed and inflicted all this damage with a one-vote majority in the Congress, which is the ultimate expression of their contempt for democratic order and their determination to establish a one-party state.

Unfortunately for them, but a light at the end of the tunnel for all Americans who love their country, the Democrat atrocities, aggressions, and failures have produced a reaction – a pro-American, pro-democracy counter-revolution that began with a parental revolt against indoctrination in the schools. This counter-revolution will sweep the Democrats from power in the coming mid-term elections, a transformation that cannot happen too quickly or too completely. The hour is very late and the condition of our country and our way of life is critical.

Brigitte Gabriel: United We Stood on September 11th

She's a good lady.

Thomas Ricks, Making the Corps

At Amazon, Thomas Ricks, Making the Corps (10th Anniversary Edition with a New Afterword by the Author).