Economics

Jul312025

Episode 1097 – When Should Race Be The Story?

Donald Trump continues winning and the media has no idea how to handle it.

Kamala Harris paves the way for a 2028 presidential run.

And when should we and shouldn’t we bring race up as a subject of a story.

News

Here is some news:

  • Kamala Harris will not run for governor of California.
  • The Commerce Department said U.S. gross domestic product—the value of all goods and services produced across the economy—rose at a seasonally and inflation adjusted 3% annual rate in the second quarter. That is up from a 0.5% contraction in the first quarter.
    • Consumer spending, the main engine of the U.S. economy, increased at a 1.4% pace in the second quarter, picking up from the first quarter as a steady labor market underpinned households’ spending power.
    • But that growth was offset by weaker business spending on buildings and equipment.
    • Trade alone boosted the second-quarter headline GDP number by nearly 5 percentage points, the most on record going back to 1947, as imports plunged after businesses front-loaded purchases in the first quarter.
  • US private sector employment rebounded strongly in July with companies adding 104,000 jobs, marking the largest increase since March and far exceeding forecasts of around 75,000 positions
    • The hiring surge comes after a revised loss of 23,000 jobs in June, reversing what had been the first decline since March 2023.
    • Annual pay growth remained stable at 4.4% for workers who stayed in their jobs and 7% for those who changed positions.
  • The Federal Reserve held rates steady for a fifth straight meeting Wednesday but faced rare dissents from two officials seeking an immediate cut.
    • Trump is pissed. He believes the tariffs will take care of inflation and keeping the interest rates high is unnecessary and interfering with job growth.
    • Trump wants to replace income taxes with tariffs.
  • The U.S. and South Korea agreed to a trade pact that will see the U.S. apply 15% tariffs to Korean goods in return for duty-free treatment on many American products, President Trump said Wednesday.
    • U.S. products won’t be charged a tariff in Korea, the president posted on Truth Social. South Korea would contribute $350 billion for investments “owned and controlled” by the U.S. and a further $100 billion in energy purchases.
  • President Donald Trump announced Wednesday that he will impose a 25% tariff on Indian goods starting August 1, plus additional unspecified penalties for India’s purchases of Russian oil and military equipment, citing India’s high tariffs on U.S. goods and its role as Russia’s largest energy buyer alongside China.
    • The move comes after failed trade negotiations and could significantly disadvantage Indian exporters in sectors like electronics, pharmaceuticals, and textiles compared to competitors from Vietnam, Bangladesh, and potentially China.
  • France, the United Kingdom and Canada have decided to recognize Palestine as a real state.
    • They are doing it because of the continued war between Hamas and Israel.
    • Israel has condemned the action.
    • All other countries, including the United States, have yet to comment.
  • The Trump administration announced a sweeping proposal Tuesday to rescind the Obama-era “endangerment finding” that has served as the legal foundation for federal climate regulations, marking what EPA Administrator Lee Zeldin called the “biggest deregulatory action in U.S. history”.
    • The move would eliminate all greenhouse gas emissions standards for vehicles, including the last remaining tailpipe rules targeting carbon pollution from cars and trucks.
    • The proposal centers on repealing the 2009 endangerment finding, which declared that greenhouse gases like carbon dioxide and methane endanger public health and welfare.

https://nypost.com/2025/07/30/us-news/kamala-harris-wont-run-for-california-governor-clearing-way-for-possible-2028-white-house-bid/?utm_medium=social&utm_source=twitter&utm_campaign=nypost
https://www.wsj.com/economy/us-gdp-q2-2025-359c022b?st=3WGoPi
https://www.perplexity.ai/discover/you/canada-joins-uk-and-france-in-opwwInMGS_isjwiOeGfnsg
https://www.perplexity.ai/discover/you/trump-epa-moves-to-roll-back-o-pEUWTDtiSAWf4Ge4jJEWNg

Here We Go Again!

A mass shooting occurred in Midtown Manhattan on the evening of July 28, 2025, at a high-rise office building located at 345 Park Avenue, which houses businesses including Blackstone and the NFL headquarters. The attack resulted in the deaths of four people, including an NYPD officer, with the gunman also dying by suicide. Several others were injured, at least one critically.

Key details:

  • The shooter has been identified as 27-year-old Shane Devon Tamura from Las Vegas, Nevada.
  • Tamura arrived in a black BMW and entered the building armed with an M-4 rifle, opening fire in the lobby, immediately killing an off-duty NYPD officer, Didarul Islam, and a woman.
  • He proceeded to the 33rd floor, firing more shots and killing another person before fatally shooting himself.
  • In total, four people (two men and two women, including the officer) were killed, and a fifth was critically wounded; four others sustained minor injuries while fleeing.
  • Tamura left behind a suicide note mentioning grievances with the NFL and claiming to suffer from CTE (chronic traumatic encephalopathy), though an exact motive has not been formally established.
  • He had a documented mental health history, and authorities are investigating why he chose this location.
  • There is no indication of accomplices; the shooter acted alone.

The incident caused widespread panic in Midtown Manhattan, leading to a massive police response, lockdown procedures, and temporary traffic and transit disruptions. The crime is one of the city’s deadliest shootings in years and remains under active investigation, with authorities combing through evidence from the suspect’s vehicle and background.

No credible link has been found to external organizations or terrorism; although two people were briefly detained during the chaos, they were determined to be unrelated to the shooting.

https://www.foxnews.com/sports/nyc-gunman-appeared-have-grievance-against-nfl-went-wrong-elevator-bank-deadly-rampage-mayor-says
https://www.perplexity.ai/search/mass-shooting-in-manhatten-5IzHT.nTSU2JnwFy__vbvQ

This IS Actually an Issue

Reports of an attack involving two people in downtown Cincinnati over the weekend are accurate, but Cincinnati Police have clarified that the incident was not related to the Cincinnati Music Festival. The violent brawl occurred at around 3 a.m. in the downtown area, during which a man was assaulted by several people—suffering kicks and stomps—while two other men associated with him were also attacked. A woman who attempted to intervene was violently struck and left unconscious.

Authorities have charged five individuals in connection with the assault and are continuing their investigation, with the potential for additional arrests. Cincinnati Police Chief Teresa Theetge emphasized that the fight did not stem from or have ties to the music festival or other major events held the same night. The brawl was described as an isolated, sudden dispute between individuals, not connected to the festival venue or its attendees.

Key Points:

  • Not linked to Cincinnati Music Festival: The attack occurred in downtown Cincinnati but was unrelated to the festival.
  • Five people charged: Police have not released names or detailed charges yet, and more arrests may follow.
  • Victims: A man and a woman (the latter knocked unconscious) were notably harmed during the incident.
  • Wider context: The event garnered significant online attention; some political figures, including Vice President JD Vance, publicly commented on the violence.

If seeking updates on safety regarding the Cincinnati Music Festival, authorities have reiterated that the festival itself was undisturbed and the isolated street fight should not be considered representative of festival safety or atmosphere.

https://www.foxnews.com/us/cincinnati-mayoral-candidate-vp-vances-half-brother-slams-city-leadership-after-brutal-beatdown
https://www.perplexity.ai/search/two-people-attacked-at-cincinn-y5bnYB7HTeyKpSGjUNMLyg

https://www.foxnews.com/us/two-arrested-brutal-cincinnati-mob-attack-one-freed-bail-despite-serious-charges

Idiocy

France has announced it will formally recognize the State of Palestine during the United Nations General Assembly in September 2025, making it the first major Western and G7 country, as well as the largest EU member, to do so. President Emmanuel Macron confirmed the decision publicly and communicated it directly to Palestinian Authority President Mahmoud Abbas.

Key details and context:

  • Timing and Forum: The formal declaration is planned for September 2025 at the UN General Assembly in New York.
  • Policy Rationale: Macron framed the step as consistent with France’s historic commitment to a negotiated two-state solution and as a means to keep diplomatic hope alive, despite the ongoing Gaza conflict and deteriorating conditions for Palestinians.
  • International Standing: Over 140 countries already recognize Palestinian statehood, but France will be unique as the first among the G7 and a permanent UN Security Council member, joining China and Russia in recognition. The US and UK remain opposed, which may further isolate them diplomatically on this issue.
  • Reaction: Palestinian officials welcomed the decision, regarding it as support for their right to self-determination. Israel strongly condemned the move, with Prime Minister Netanyahu arguing it “rewards terror” after Hamas’s October 2023 attack.
  • Domestic Implications: France, which has Europe’s largest Jewish and Muslim communities, has long supported a two-state solution, but previous French governments deferred formal recognition.
  • Potential Impact: Analysts note the decision could generate momentum, encouraging other Western nations to follow suit, but caution it will not alone transform circumstances on the ground for Palestinians in the near-term.

France’s recognition marks a significant diplomatic shift and could move a broader international debate, but the practical impact on peace negotiations and daily realities for Palestinians remains uncertain.

https://www.perplexity.ai/search/france-recognizes-palestinian-quv5v2HoQ2yryHEKr5Lx5w

Prime Minister Keir Starmer has announced that the United Kingdom will recognize the State of Palestine at the United Nations General Assembly in September 2025—unless Israel agrees to a ceasefire in Gaza, allows humanitarian aid, and commits to a renewed peace process based on a two-state solution.

Key points:

  • Recognition Deadline: The UK government plans to officially recognize Palestine in September, aligned with the UN General Assembly, unless substantive changes occur.
  • Conditions on Israel: Recognition can be delayed if Israel takes “substantive steps” to end the crisis in Gaza, including agreeing to a ceasefire, allowing sustained humanitarian access, and committing to no annexations in the West Bank as part of a long-term path toward a two-state solution.
  • Conditions on Hamas: Starmer also said Hamas must release all hostages, accept disarmament, and agree to play no role in Gaza’s future government.
  • International Context: This follows a similar declaration from France, and if both the UK and France proceed, the US would become the only permanent UN Security Council member not recognizing Palestine. Currently, roughly three-quarters of UN member states recognize Palestinian statehood.
  • Political Pressure: The move comes amid increased pressure from within the Labour Party, as well as international shifts—especially after France’s stated intention to recognize Palestine in September.

Starmer emphasizes that no party (neither Israel nor Palestinian factions) will have a veto over the UK’s decision, which is being driven by the worsening humanitarian crisis in Gaza and the perceived dwindling prospects for a negotiated two-state solution.

The British government will reassess the situation and its conditions ahead of the September UN gathering, and the final decision will depend on the extent to which these conditions have been met.

https://www.perplexity.ai/search/starmer-says-country-will-reco-yN_r3sRTRI6BRuI6f37sqA

Israel’s Reactions

Israel has reacted with strong condemnation to both England (the UK) and France moving toward recognizing the State of Palestine. Israeli officials have characterized these actions as rewarding terrorism and undermining peace, warning of potentially destabilizing consequences for the Middle East.

  • Reaction to England (the UK):
    • High-level Israeli officials have denounced the UK’s planned recognition of Palestine, with statements warning it could undermine regional stability and complicate any negotiated two-state solution. The recognition is broadly seen by Israel as applying international pressure in a way that benefits adversaries and emboldens Palestinian factions, particularly amid ongoing conflict in Gaza.
  • Reaction to France:
    • Israeli Prime Minister Benjamin Netanyahu and other top officials have strongly condemned France’s announcement, saying it “rewards terror and risks creating another Iranian proxy, just as Gaza became.” Netanyahu went so far as to say that recognizing a Palestinian state under the current conditions would make it “a launch pad to annihilate Israel—not to live in peace beside it.” Other Israeli officials have criticized the move as “absurd and unserious,” and warned of possible retaliatory measures, including revisiting intelligence-sharing and other aspects of bilateral cooperation.
    • Israel’s Foreign Minister stated that “a Palestinian state would be a Hamas state,” underscoring deep mistrust of the current Palestinian leadership and process.
    • Some senior Israeli politicians have even argued that such unilateral recognition by countries like France could force Israel to take actions such as expanding sovereignty or annexing parts of the West Bank.

Summary of Israel’s Position:

  • Israel sees Western recognition of Palestinian statehood—especially by major powers like England and France—as a dangerous precedent.
  • Israeli leaders argue it will increase instability, serve as a reward to groups like Hamas, harm the prospects for direct negotiations, and may prompt harsh countermeasures by the Israeli government.
  • The moves by the UK and France have intensified already strained diplomatic relations, with Israel warning of negative consequences for bilateral ties.

https://www.perplexity.ai/search/starmer-says-country-will-reco-yN_r3sRTRI6BRuI6f37sqA

spacer
Jul292025

Episode 1096 – Rest in Peace, Ryno!

Major League Baseball loses a legend and a really good guy.

Donald Trump is in Scotland and gets some major wins.

And a judge makes an insane ruling about the defunding of Planned Parenthood.

News

Here is some news:

  • A federal judge has blocked enforcement of a key provision in President Donald Trump’s recently enacted “One Big Beautiful Bill” that sought to strip Planned Parenthood and its affiliates of Medicaid funding. The provision, though not mentioning Planned Parenthood by name, was written to bar Medicaid dollars for one year to healthcare providers performing abortions and receiving more than $800,000 in annual Medicaid reimbursements—a description that, in practice, applied almost exclusively to Planned Parenthood.
    • Judge Indira Talwani, based in Boston, ruled that the law likely violated the Constitution on multiple grounds:
      • Bill of Attainder: The judge held that Congress unconstitutionally singled out Planned Parenthood for punitive treatment without a judicial trial, effectively targeting the organization vicariously through legislative language.
      • Equal Protection & First Amendment: The ruling also found that the law infringed on the equal protection rights of Planned Parenthood members and may have violated their freedom of association, since it penalized clinics merely associated with Planned Parenthood—even those not performing abortions themselves.
      • Judge Talwani issued a nationwide preliminary injunction, ensuring that all Planned Parenthood clinics can continue to bill Medicaid for services while the litigation works through the courts
  • Donald Trump was in Scotland this weekend and things went pretty well.
    • The trade deal with the European Union will “provide Americans with unprecedented levels of market access to the European Union,” the White House said Monday afternoon, noting that it rebalances the economic relationship between the two countries, “marks a generational modernization of the transatlantic alliance.”
      • Under the terms of the deal, the United States and European Union reached a Cooperation Agreement on Reciprocal, Fair and Balanced Trade, enabling American farmers, ranchers, fishermen, and manufacturers to increase their exports and expand their opportunities as well as reduce the goods trade deficit with the European Union.
      • The European Union will purchase $750 billion of United States energy exports during the duration of the president’s time in office, strengthening American energy dominance and reducing Europe’s reliance on Russia. The EU will also invest $600 billion in the United States throughout the president’s term, in addition to over $100 billion invested in the United States every year by EU companies.
    • Also, during his British travels, the president negotiated a ceasefire between Thailand and Cambodia.
      • “Just spoke to the Acting Prime Minister of Thailand and Prime Minister of Cambodia. I am pleased to announce that, after the involvement of President Donald J. Trump, both Countries have reached a CEASEFIRE and PEACE,” Trump said on Truth Social Monday.
      • “Congratulations to all! By ending this War, we have saved thousands of lives. I have instructed my Trade Team to restart negotiations on Trade. I have now ended many Wars in just six months — I am proud to be the President of PEACE!”
    • He threatened Russia with more economic penalties if they don’t end the fighting with Ukraine.
      • “We thought we had that settled numerous times, and then President Putin goes out and starts launching rockets into some city, like Kyiv, and kills a lot of people in a nursing home or whatever,” Trump said Monday. “You have bodies lying all over the street. And I said, ‘That’s not the way to do it.’”
      • “I’m going to make the new deadline of about 10 or 12 days from today. There’s no reason in waiting,” he added. “We just don’t see any progress being made.”
    • He also addressed the rumors of starvation in Gaza and Bibi’s denial that there is starvation.
      • “We’re gonna be getting some good, strong food,” the president noted. “We can save a lot of people. Those kids — that’s real starvation. I see it. You can’t fake that.”
      • “We’re gonna be even more involved,” he added. “We did some airlifts, airdrops. And the people are running for it. And, the PM is gonna help us, they’re very effective with that. It’s not very hard to do.”
  • Ryne Sandberg, Hall of Fame second baseman and Chicago Cubs legend, died on July 28, 2025, at the age of 65 after a long battle with metastatic prostate cancer.
    • Sandberg was first diagnosed with metastatic prostate cancer in January 2024 and underwent intensive chemotherapy and radiation treatments.
    • He was initially declared cancer-free in August 2024, but in December the cancer returned and spread to other organs.
    • Sandberg passed away at his home in Illinois, surrounded by family.
    • Sandberg was celebrated as one of the greatest second basemen in baseball history, renowned for his combination of power, speed, and defensive excellence during his 16-season MLB career, most notably with the Chicago Cubs.
    • He was a 10-time All-Star, the 1984 National League MVP, and won nine consecutive Gold Glove awards.
    • Sandberg was inducted into the Baseball Hall of Fame in 2005 and is remembered as an icon both for his athletic achievements and his sportsmanship.

https://www.dailywire.com/news/president-trumps-scotland-trip-yields-peace-deals-and-trade-deals?author=Mary+Margaret+Olohan&category=undefined&elementPosition=3&row=3&rowHeadline=Latest+News&rowType=Vertical+Carousel&title=President+Trump%E2%80%99s+Scotland+Trip+Yields+%E2%80%98Peace+Deals+And+Trade+Deals%E2%80%99
https://www.perplexity.ai/search/mass-stabbing-at-a-walmart-ZJzUg4YlT064vJI_.xFDGw
https://www.perplexity.ai/search/death-of-ryan-sandberg-HoWLYBgMQ.OqidlIoAWq6Q
https://www.perplexity.ai/search/judge-rules-big-beautiful-bill-o5hXFXGxRNGCMhim88NSjQ

spacer
Jul222025

Episode 1093 – It’s Time to Make Some Arrests!

Donald Trump signs a couple of big bills into laws. More wins.

Late night television loses a “celebrated icon.” At least that’s what the media is calling him.

And another conspiracy theory sounds like it is true. I have some ideas on what we need to do.

News

Here is some news:

  • President Trump is suing The Wall Street Journal for libel following a report on his alleged relationship with Jeffrey Epstein and has now called for the release of related grand jury testimony.
  • The House passed the GENIUS Act Thursday in a 308-122 vote, with more than 100 Democrats joining most Republicans to advance the legislation. The bill, which establishes the first federal regulatory framework for stablecoins, is expected to be signed into law as early as today at a White House ceremony.
    • A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its price to an external reference asset, such as a fiat currency (like the U.S. dollar), a commodity (such as gold), or another financial instrument.
  • President Donald Trump has signed a bill enacting $9 billion in federal spending cuts, primarily targeting public broadcasting (including PBS and NPR) and foreign aid initiatives.
    • About $1.1 billion is eliminated for the Corporation for Public Broadcasting, which includes funding for PBS, NPR, and their affiliates.
    • Nearly $8 billion is cut from a range of foreign aid programs, primarily those operated by the U.S. Agency for International Development (USAID).
    • Vote margins: The House approved the bill 216–213, with all Democrats and two Republicans voting against it. The Senate passed its version 51–48, largely along party lines.
    • The Senate removed a proposed $400 million cut to the global PEPFAR AIDS program, softening the total from Trump’s original $9.4 billion proposal to $9 billion.

Yeah, It Was Trump

According to the Daily Wire:

CBS will pull the plug on late-night comedian Stephen Colbert’s “The Late Show” next year in a “purely financial decision,” the network announced on Thursday.

Colbert’s late-night comedy news show will air its final episode in May 2026, according to a statement released by CBS. The announcement marked the end of a nearly 11-year run Colbert has had hosting “The Late Show,” which first began in 1993 under former host David Letterman.

The network said that it is scrapping “The Late Show” franchise and will not move on to another host after Colbert.

“We consider Stephen Colbert irreplaceable and will retire ‘THE LATE SHOW’ franchise at that time. We are proud that Stephen called CBS home. He and the broadcast will be remembered in the pantheon of greats that graced late night television,” CBS said in a statement.

“This is purely a financial decision against a challenging backdrop in late night. It is not related in any way to the show’s performance, content or other matters happening at Paramount,” it continued.

Colbert announced the news from his host chair at the top of his Thursday episode.

Then, he did three segments with Adam Schiff. Yeah, I wonder why he got cancelled.

Year/SeasonAvg. Nightly Viewers
2015–2016~2.5–3 million
2016–20173.2+ million
2017–20183.1 million
20183.81 million
2019~3.0 million
2020~2.9 million
2021~2.8 million
2022~2.7 million
2023~2.6 million
2024 (Q1)2.59 million
2025 (Q2)2.42 million

Along with the rating cratering, the show is losing $40 million a year (might have to do with 200 people working on it).

The Gutfeld! show, which the media doesn’t consider late night, is averaging a million more viewers.

That doesn’t matter. The media knows who to blame. How we blame Trump.

So boring.

https://www.dailywire.com/news/leftists-lash-out-after-cbs-cancels-colbert-kimmel-tells-network-f-you-and-your-sitcoms?author=Amanda+Harding&category=undefined&elementPosition=24&row=3&rowHeadline=Latest+News&rowType=Vertical+Carousel&title=Leftists+Lash+Out+After+CBS+Cancels+Colbert%2C+Kimmel+Tells+Network+%E2%80%98F+You%E2%80%99+And+Your+Sitcoms
https://www.dailywire.com/news/cbs-cans-ultra-leftist-stephen-colberts-late-show-all-just-going-away?author=Tim+Pearce&category=undefined&elementPosition=39&row=3&rowHeadline=Latest+News&rowType=Vertical+Carousel&title=CBS+Cans+Ultra-Leftist+Stephen+Colbert%E2%80%99s+%E2%80%98Late+Show%E2%80%99%3A+%E2%80%98All+Just+Going+Away%E2%80%99
https://www.perplexity.ai/search/what-were-stephen-colbert-s-ra-EMYhzNdrTXimQSXnZQmQwg

Someone Needs to Go to Prison

This was last week during questioning about who knew Joe Biden was senile:

All these people should be given immunity so they have to testify.

But the corruption goes much deeper. According to the Daily Wire:

Director of National Intelligence Tulsi Gabbard declassified documents Friday revealing that the Obama administration changed intelligence assessments after the 2016 election to create a narrative of Russian interference, despite earlier intelligence community findings that Russia “did not impact” the election through cyber activities.

The intelligence community concluded before the election that Russia was “probably not trying … to influence the election by using cyber means,” according to the declassified records obtained by Fox News. However, following Trump’s unexpected victory over Hillary Clinton, their tone appeared to have changed.

“On Dec 8, 2016, IC officials prepared an assessment for the President’s Daily Brief, finding that Russia ‘did not impact recent U.S. election results’ by conducting cyber attacks on infrastructure,” Gabbard wrote in a thread on X. “Before it could reach the President, it was abruptly pulled ‘based on new guidance.’ This key intelligence assessment was never published.”

The presidential brief prepared for President Obama on December 8, 2016, stated: “We assess that Russian and criminal actors did not impact recent US election results by conducting malicious cyber activities against election infrastructure,” noting that any Russian activities “probably were intended to cause psychological effects, such as undermining the credibility of the election process and candidates.”

The brief concluded that it was “highly unlikely” Russian interference “would have resulted in altering any state’s official vote result.”

“Criminal activity also failed to reach the scale and sophistication necessary to change election outcomes,” it stated.

The FBI raised immediate objections to the brief and requested that its publication be delayed until the bureau could address its concerns. Under then-Director James Comey, the FBI drafted a formal “dissent” to the original briefing.

Subsequently, the Office of the Director of National Intelligence postponed internal publication of the Presidential Daily Brief, citing “new guidance” as the reason for the delay.

Just one day later, on December 9, a meeting was called in the White House Situation Room to discuss Russian election interference with top officials, including then-CIA Director John Brennan, then-National Security Advisor Susan Rice, then-Secretary of State John Kerry, and then-Attorney General Loretta Lynch.

Following this meeting, then-Director of National Intelligence James Clapper threw out the old analysis and tasked intelligence leaders with crafting a new assessment “per the president’s request,” detailing “tools Moscow used and actions it took to influence the 2016 election.”

Gabbard revealed: “According to whistleblower emails shared with us today, we know Clapper and Brennan used the baseless discredited Steele Dossier as a source to push this false narrative in the intelligence assessment.”

Intelligence sources told Fox News the new report “was based on information that was known by those involved to be manufactured i.e. the Steele Dossier or deemed as not credible,” and the CIA had previously dismissed it as filled with “internet rumor[s].”

By January 6, 2017, a new Intelligence Community Assessment was released that “directly contradicted the IC assessments that were made throughout the previous six months,” the ODNI office told Fox News.

Intelligence officials told Fox News they consider the assessment to have been blatantly “politicized” after it “suppressed intelligence from before and after the election showing Russia lacked intent and capability to hack the 2016 election.”

“The information we are releasing today clearly shows there was a treasonous conspiracy in 2016 committed by officials at the highest level of our government,” Gabbard told Fox News. “Their goal was to subvert the will of the American people and enact what was essentially a years-long coup with the objective of trying to usurp the President from fulfilling the mandate bestowed upon him by the American people.”

“No matter how powerful, every person involved in this conspiracy must be investigated and prosecuted to the fullest extent of the law, to ensure nothing like this ever happens again,” Gabbard said. “The American people’s faith and trust in our democratic republic and therefore the future of our nation depends on it.”

Gabbard concluded: “As such, I am providing all documents to the Department of Justice to deliver the accountability that President Trump, his family, and the American people deserve.”

Someone over the last 15 years needs to be arrested, perp-walked, tried, convicted, and serve the rest of their lives in prison.

https://www.dailywire.com/news/obama-admin-suppressed-intel-showing-russia-didnt-impact-2016-election-tulsi-reveals?author=Nathan+Gay&category=undefined&elementPosition=15&row=3&rowHeadline=Latest+News&rowType=Vertical+Carousel&title=Obama+Admin+Suppressed+Intel+Showing+Russia+Didn%E2%80%99t+Impact+2016+Election%2C+Tulsi+Reveals

spacer
Jul202025

Episode 1090 – If You Don’t Like It, Stop Doing It!

Tariffs are finally hitting the economy. What will be the next step by the Trump administration.

Gavin Newsom keeps telling us that illegal aliens are the backbone of the Californian economy. I argue that is the primary reason California needs to deport illegal aliens.

And Karen Bass, the mayor of Los Angeles, feels real bad for illegal aliens too afraid to go to work in her city. That’s means there’s going to be a tax hike.

News

Here is some news:

  • The Trump Administration has stated that illegal aliens will no longer be able to bond out by a judge.
  • The Supreme Court ruled that Trump can proceed to gut the Department of Education.
    • This comes after Linda McMahon fired half the people in the department.
    • Completely shutting down the department may require congressional approval.
  • Donald Trump announced an arms deal where Ukraine will get weapons purchased from the United States by NATO.
    • NATO will foot the bill.
    • NATO is thrilled by the deal.
    • Trump has also put more tariffs on Russia and has threatened tighter sanctions.
  • The inflation rate has jumped to 2.7%
    • This was expected.
    • A lot of this has to do with the tariffs.
    • It is a good thing that the Fed did not lower interest rates.

He Doesn’t Get It

In summary:

  • Direct state government debt: about $158 billion
  • Combined state and local government long-term debt: over $510 billion
  • Total debt including all unfunded obligations: about $1.6 trillion

California also faces significant annual budget deficits, with projections of a $12 billion–$70 billion shortfall for the 2024–25 fiscal year.

Based on the most recent and reputable estimates, California spends between $22.8 billion and $30.9 billion annually on benefits and services for undocumented immigrants (often referred to as “illegal aliens”). The costs include health care, education, public assistance, and law enforcement:

  • Health Care: California’s expansion of Medi-Cal to cover undocumented immigrants is projected to cost over $8.4 billion per year for the 2024-2025 fiscal year.
  • Education: Education is historically the largest cost driver. Earlier detailed breakdowns estimate that K-12 education for children of undocumented immigrants and related services (like English language instruction) reaches $12.3 billion per year.
  • Law Enforcement and Justice: Costs for policing, incarceration, and courts attributable to undocumented immigrants are over $4.4 billion annually.
  • Other Services: Additional expenses include public assistance programs and general government services, adding over $2 billion more.

https://www.perplexity.ai/search/how-much-does-california-spend-6CMDv5AcTT6TODSmUvlBZg
https://www.perplexity.ai/search/how-much-in-debt-is-the-state-7Vd.jLT.THuCp.HXKyse_g

It Just Gets Better:

According to L.A. Times:

Mayor Karen Bass announced a plan Friday to provide direct cash assistance to people who have been affected by the Trump administration’s sweeping immigration raids.

The aid will be distributed using cash cards with a “couple hundred” dollars on them, which should be available in about a week, Bass said at a news conference.

“You have people who don’t want to leave their homes, who are not going to work, and they are in need of cash,” she said.

Bass spoke about a family she met who needed two incomes to afford their rent. After one of the breadwinners was detained in an immigration raid, she said, the family is concerned they may face eviction.

It was not immediately clear what the qualifications will be needed to receive the cards.

The mayor emphasized that the money will not come from city coffers but from philanthropic partners. The cards will be distributed by immigrants rights groups such as the Coalition for Humane Immigrant Rights of Los Angeles.

The city will coordinate between philanthropists and organizations distributing the cards, according to the mayor’s office.

https://www.newsmax.com/us/los-angeles-karen-bass-immigration/2025/07/11/id/1218496
https://www.latimes.com/california/story/2025-07-11/l-a-will-provide-cash-assistance-to-immigrants

What? Again?

According to Fox News:

A federal judge in Los Angeles late Friday issued a sweeping temporary restraining order (TRO) against Immigration and Customs Enforcement (ICE), ruling that the agency likely violated constitutional protections through its immigration enforcement practices in California.

In a 53-page order issued Friday, U.S. District Judge Maame Ewusi-Mensah Frimpong, a Biden appointee, barred ICE from conducting detentive stops in the Central District of California unless agents have “reasonable suspicion” that a person is in the country unlawfully. 

Frimpong’s ruling explicitly prohibits ICE from relying solely on race or ethnicity, speaking Spanish or English with an accent, location, or type of work when forming suspicion, citing the Fourth Amendment.

The order also requires ICE to keep and turn over detailed records of each stop and agents’ reasoning for them, develop official guidance for determining “reasonable suspicion,” and implement mandatory training for agents.

A couple of things:

  • This judge is overstepping her bounds. She can’t tell law enforcement how to practice their craft.
  • This is a blanket TRO. If there is evidence of wrong-doing of an individual, fine. But you can’t just say no to it all.
  • The Supreme Court has ruled on this when it came to stop and frisk.

https://www.foxnews.com/politics/federal-judge-issues-temporary-restraining-order-curtailing-trumps-immigration-enforcement-california

This Is How to End Illegal Immigration

According to the New York Post:

The Trump administration moved Thursday to block illegal immigrants from accessing taxpayer-funded aid to enroll in educational programs and receive health care benefits.

The departments of Education, Agriculture, Labor, Justice and Health and Human Services made separate announcements Thursday, touting savings of around $40 billion.

HHS called the change a “significant policy shift” that will “ensure that taxpayer-funded program benefits intended for the American people are not diverted to subsidize illegal aliens.”

“Under President Trump’s leadership, hardworking American taxpayers will no longer foot the bill for illegal aliens to participate in our career, technical, or adult education programs or activities,” Education Secretary Linda McMahon also said in a statement. 

“The Department will ensure that taxpayer funds are reserved for citizens and individuals who have entered our country through legal means who meet federal eligibility criteria.”

Agriculture Secretary Brooke Rollins announced that states should also be preventing migrants from accessing benefits through the Supplemental Nutrition Assistance Program (SNAP).

https://nypost.com/2025/07/10/us-news/trump-moves-to-bar-illegal-immigrants-from-aid-for-education-health-programs?utm_source=nypost&utm_campaign=android_nyp&utm_medium=social

spacer
Jul072025

Episode 1084 – Snatching Defeat From the Jaws of Victory!

Alligator Alcatraz is almost up and running and will hold some of the most dangerous illegal aliens in the country until they get deported. I have a story about one.

Alligator Alcatraz is not only going to break illegal aliens hopes of a pleasant life in the United States, it has broken a bunch of low-IQ individuals on the Left.

And Republicans sure know how to lose a sure bet.

Grasping Defeat from the Jaws of Victory

According to the Daily Wire:

Speaker Mike Johnson has President Donald Trump’s signature bill at the finish line.

During a marathon overnight session that at times appeared doomed, Republicans voted 219-213 at about 3:30 a.m. to send the bill to a final vote.

The late hour was not due to procedure, but rather indecision on the Republican side of the aisle. After five Republicans voted against the rule to proceed, coupled with a handful of Republicans who were holding out, Johnson had to scramble to not only find votes, but also get Republicans to switch theirs.

Just before midnight, Johnson said he would hold the vote open for as long as it needed, and started to whip votes, with a helping hand from Trump.

We are waiting for the final vote, but leave it to Democrats to stall. Hakeem Jeffries has decided to use his right to use the “magic minute” that allows him to filibuster about the bill.

The “magic minute” is a right that the leaders have a house to make a speech as long as he wants about the bill. Basically, it’s a filibuster.

Hakeem Jeffries walked into the chambers at about 5 AM with three large binders and he started. He has been talking ever since and is not expected to stop until some time this afternoon.

https://www.dailywire.com/news/big-beautiful-bill-at-finish-line-after-trump-and-johnson-rally-overnight-support?topStoryPosition=undefined&author=Daily+Wire+News&category=News&elementPosition=0&row=1&rowHeadline=Top+Stories&rowType=Top+Stories&title=%E2%80%98Big%2C+Beautiful+Bill%E2%80%99+At+Finish+Line+After+Trump+And+Johnson+Rally+Overnight+Support

He Totally Belongs in Our Country

According to the Daily Wire:

Homeland Security Secretary Kristi Noem on Tuesday shared a disturbing tale of an illegal immigrant, which she said underscored the importance of the Trump administration’s deportation efforts.

“The other day I was talking to some marshals who had been partnering with ICE,” Noem said. “They said they had detained a cannibal and put him on a plane to take him home and while they had him in his seat he started to eat himself, and they had to get him off and get him medical attention.”

“You know, what bothered me the most is that this U.S. Marshal just said it like it was normal,” Noem said in an interview with FOX News. “He said he was literally eating his own arms. That is what he did. He called himself a cannibal and ate other people and ate himself that day.”

“These are the kind of deranged individuals that are on our streets in America that we’re trying to target,” Noem added.” We’re trying to get them out of our country because they are so deranged they don’t belong here.”

The secretary then slammed news outlets that “lie every single day about what these operations are.”

“We are going after murderers and rapists and traffickers and drug dealers and getting them off the streets, and getting them out of this country because Joe Biden let the worst of the worst come in here.”

“They shouldn’t be walking the streets with our children. And they shouldn’t be living in communities with our families who just want to raise their children to grow up and get a job and to live the American dream,” she added.

The press briefing comes after a visit to Florida’s latest ICE detention facility, dubbed Alligator Alcatraz, alongside President Donald Trump.

https://www.dailywire.com/news/illegal-immigrant-cannibal-tried-to-eat-himself-on-deportation-flight-dhs-secretary-says?author=Isabel+Garcia&category=undefined&elementPosition=8&row=3&rowHeadline=Latest+News&rowType=Vertical+Carousel&title=Illegal+Immigrant+Cannibal+Tried+To+Eat+Himself+On+Deportation+Flight%2C+DHS+Secretary+Says

Dumbasses of the Day

No One Is Going to Watch

According to the Daily Wire:

On July 4th, the movie “Sinners” will become the first show to be interpreted into “Black American Sign Language (BASL),” per a press release from Warner Bros.

The entertainment company described it as “a major step forward in accessibility, representation, and visibility in streaming.”

“BASL is a distinct dialect of American Sign Language (ASL) with its own dynamic history and unique grammar, signing space, rhythm, facial expressions, and cultural nuances,” the release stated. “For the first time, the Black Deaf community will have streaming access to a more immersive experience in their language. Max subscribers, who sign in ASL but are unfamiliar with this dialect, will also be able to follow along with this interpretation.”

The press release noted that the interpretation will be done by Nakia Smith, “an influential voice in the Black Deaf community, who delivers a powerful interpretation with cultural depth and linguistic richness that aligns with the film’s themes and historical timeline.” 

“Accessibility within streaming is not a one-size-fits-all approach. Our goal at Max is to make these great stories accessible to all audiences in a way that is authentic to the content and the communities we serve,” Naomi Waibel, Senior VP of Global Product Management at Warner Bros. Discovery, said in a statement. “Sinners with Black American Sign Language is an example of how culturally nuanced access can enrich the viewing experience for our audiences.”

According to the movie’s summary, “Sinners” is about twin brothers who “return to their hometown to start again, only to discover that an even greater evil is waiting to welcome them back.” It was released in theaters in April 2025.

https://www.dailywire.com/news/sinners-to-debut-on-max-as-first-show-with-black-american-sign-language-translation?author=Amanda+Harding&category=undefined&elementPosition=1&row=3&rowHeadline=Latest+News&rowType=Vertical+Carousel&title=%E2%80%98Sinners%E2%80%99+To+Debut+On+Max+As+First+Show+With+%E2%80%98Black+American+Sign+Language%E2%80%99+Translation
https://www.perplexity.ai/search/what-is-the-linguistic-differe-Zqa_A04hSiyfTu_WJ_IJlw

They Hate You

The sun monster strikes again. According to the Daily Wire:

In 2023, the Teamsters signed a massive deal with UPS to guarantee a fleet of air-conditioned trucks.

“Our members just ratified the most lucrative agreement the Teamsters have ever negotiated at UPS. This contract will improve the lives of hundreds of thousands of workers,” Teamsters General President Sean M. O’Brien boasted at the time. “Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry.”

He may have started celebrating too early.

As temperatures climbed last month, the Teamsters sent a furious letter to UPS demanding information on the whereabouts of the air-conditioned vehicles.

“How does UPS expect to actually deliver 20,000 or more air-conditioned package cars and vans over the next two years, when the delivery giant is already so far behind?” O’Brien demanded. “The summer heat beating down on our members is no joke. UPS is playing a dangerous game with the lives of thousands of essential American workers.”

UPS, meanwhile, seems to have different concerns.

For years, the company has been focused on replacing its fleet with so-called green vehicles. A few years ago, UPS pledged to make 40% of its vehicles use “alternative fuel” by 2025. So far, UPS says it uses more than 1,000 electric or hybrid vehicles.

Drivers blasting their air conditioning in the sweltering Texas heat probably doesn’t help the shipping giant’s goal of reaching “carbon neutrality by 2050.”

https://www.dailywire.com/news/ups-push-for-electric-trucks-leaves-drivers-sweating-and-unions-furious?author=Mairead+Elordi&category=undefined&elementPosition=9&row=3&rowHeadline=Latest+News&rowType=Vertical+Carousel&title=UPS+Push+For+Electric+Trucks+Leaves+Drivers+Sweating+%E2%80%94%C2%A0And+Unions+Furious

Is This Real?

According to the New York Post:

Nearly no one enjoys getting stopped by Transportation Security Administration (TSA) authorities at the airport.

But when checkpoint alarm bells begin blaring around a traveler’s groin, as happened to one befuddled passenger not long ago, there is a chance it’s due to extreme wetness in their pants, insiders say.

“I flew for the first time in 15 years this week, and both airports flagged my crotch at the arms up scanner,” a confused tripper confessed on Reddit recently.

The wet wanderluster described herself as a “midsized adult woman (5-foot-8, 169 lbs.)” wearing bike shorts and normal underwear. The skyway siren assured social media readers that her private parts are neither pierced nor outfitted with medical devices. She claimed her pockets were totally empty. 

“I don’t care about the pat down, they were polite and professional and it doesn’t bother me,” said the baffled belle, “but I’m wondering what did it.”

Internet know-it-alls say it’s crotch sweat — and they’re likely right. 

“Sweat, feminine products (liners, pads, depends) could be anything but those seem to be culprits,” a Reddit commenter wrote. 

“Last time I flew out of my home airport of Tampa, I got searched too,” admitted an equally clammy jet-setter. “The [security] guard said something unnerving like ‘swamp rot’ or ‘swamp crotch’ or something similarly embarrassing.”

It’s a bodily function that can wrongfully trigger red flags, per TSA expert Shawna Malvini Redden.

“Perspiration is probably the weirdest thing that can set off the scanners,” Malvini Redden recently explained to Reader’s Digest. “It has to do with millimeter wave technology and how the waves bounce off water.” 

The insider added that because the machines often generate false alarms due to sweat, some countries, including France and Germany, have banned the scanners altogether.

But massive moisture isn’t the only reason the TSA technology might mistake one’s undercarriage for a dangerous weapon. 

“On-person screening technology effectively screens diverse populations of travelers every day,” TSA representatives previously told The Post, adding that their devices and screening algorithms are trained to recognize body composition.

Any unexpected abnormalities, including excess sweat, could potentially prompt an alert, they said.

https://nypost.com/2025/06/30/lifestyle/my-sweaty-crotch-set-off-tsa-alarm-at-airport-security-passenger?utm_source=nypost&utm_campaign=android_nyp&utm_medium=social

spacer
May072021

Episode 342 – Tsunami Inbound!

It’s coming. Like the cicadas. Like the Chinese rocket from space. It’s coming and it’s going to bite us all.

AOC is still an idiot.

Joe Biden needs to stop calling himself a Catholic.

And Andrew Cuomo, the guy who should have been impeached by now, is embracing segregation.

 

Things Aren’t Going Well

Joe Biden got some bad news. The jobs numbers came out today and it was one fifth of what was expected. This is going to have some consequences.

  • There were 266,000 jobs created in April.
  • The Budget Office expected almost a million jobs to be created in April.
  • The unemployment rate went up to 6.1%.
  • The unemployment rate is expected to be higher based on the fact a lot of people are not returning to the workforce.

Reasons why this is happening:

  • Schools are still closed.
  • The economy remains closed. It is opening but states like California and Michigan are still really restricting business.
  • The mixed messaging by the White House and Tony Fauci about the effectiveness of the vaccines and where we are in respect to the pandemic.
  • There have been reports that we may never reach herd immunity. This thing is never going to end.
  • The government has been giving out money for the last year and there are no plans by the Democrats to stop. People are being paid more to stay at home.
  • Businesses like McDonald’s can’t get low wage workers. They are offering $50 to people for just applying for a job.

Joe Biden thinks this is not a bad thing. He said today:

That’s a lie. He probably knows it though what he knows these days cannot be actually measured. But even CNN know this is really bad news.

It’s Coming Faster Than We Thought

CNN pretty much summed it up in a story today or yesterday. I was shocked:

The job numbers mean inflation is coming. Here’s the problem:

  • People have a lot of money right now. That’s because they have been given money for the last year.
  • Because people are making more money by staying home than working, they are not going to work.
  • Because there are less workers, supply lines and supply chains do not have enough people for products and services.
  • As demand goes up and supply goes down, prices for goods and services go up.
  • Walla! Inflation!
  • Who is this going to affect most? The poor and lower middle class. Their limited income is now going to buy less.

I thought this wouldn’t happen for a couple of years and this inflation is not what we are going to see because of the trillions of dollars of spending. This is the inflation from low supply and high demand.

Prices from March 2020 to March 2021:

  • Lumber is up 65%. Great for the housing market.
  • Gas and crude oil is up 40%. Prepare for the cost of driving and flying to go way up.
  • Iron and steel up 38%. Don’t need to worry about gas if you can’t afford a car.
  • Copper is up 75%.
  • Cotton is up 35%.
  • Fertilizer is up 26%.

These are actual increases from last year to this year. The projections are far worse. They are projecting lumber to increase between 200-400%. Gas could be up 50-70% because crude oil could get to over $100 a barrel again since we stopped being energy independent with Biden’s garbage policies.

In 2008, Obama said that we should be prepared to skip things like travel because of the environment. He was with a Congress that told him to buzz off. Now, the insane crap that Obama wanted is now being realized and we are going to suffer.

https://www.dailywire.com/news/biden-struggles-disastrous-jobs-report-shows-america-is-on-the-right-track
https://www.forbes.com/sites/georgecalhoun/2021/05/05/commodity-price-increases-do-not-create-inflation/?sh=39f9ae2057cb

 

God, She’s Dumb

Did you know that Planned Parenthood actually saves lives? Yeah, I didn’t either. But here is the logic of the insane and stupid justifying the killing of babies by Planned Parenthood:

What she doesn’t get: Abortion is a policy that kills people. OK, there’s a lot to unpack here.

  • First off, AOC was born into an upper middle class family. I doubt her very well off family had anything to do with Planned Parenthood.
  • I love when people compare abortion to the death penalty. They really have nothing to do with each other.
  • I also trip out about the reverence people like AOC hold for Planned Parenthood
    • It was founded by Mary Sanger, a rabid racist and eugenicist.
    • She opened her clinics in black neighborhoods because she saw blacks and the disabled as inferior to whites.
    • Her clinics were for providing birth control, sterilization and abortion targeting the “inferior” people of color and the disabled.
    • The science community, including eugenicists, saw her as so radical, they rejected her, her research and her writings.
    • Planned Parenthood, this year, rejected Mary Sanger because people are beginning to learn a little bit about her and they do not want to be associated with her. It only took about a 100 years.
  • Now, on a more important note, Planned Parenthood kills 300,000 babies a year. With some adjustments, and don’t quote me on this because I have heard it is way higher, 10 million babies have been killed by Planned Parenthood.
  • Of that, less than 2%, and I’m being liberal here, are aborted due to rape, incest or danger to the mother. That means 98% of murdered babies are killed for convenience.

AOC is either really dumb or lying to you. I think it’s both. How she can up hold a clinic whose main purpose was to eradicate the United States of black people and the disabled.

https://www.dailywire.com/news/aoc-on-planned-parenthood-which-performs-300000-abortions-per-year-they-save-lives

 

Why Bother?

Yesterday was the National Day of Prayer. Joe Biden had something to say about it:

“Throughout our history, Americans of many religions and belief systems have turned to prayer for strength, hope, and guidance. Prayer has nourished countless souls and powered moral movements — including essential fights against racial injustice, child labor, and infringement on the rights of disabled Americans. Prayer is also a daily practice for many, whether it is to ask for help or strength, or to give thanks over blessings bestowed.

“The First Amendment to our Constitution protects the rights of free speech and religious liberty, including the right of all Americans to pray. These freedoms have helped us to create and sustain a Nation of remarkable religious vitality and diversity across the generations.

“Today, we remember and celebrate the role that the healing balm of prayer can play in our lives and in the life of our Nation. As we continue to confront the crises and challenges of our time — from a deadly pandemic, to the loss of lives and livelihoods in its wake, to a reckoning on racial justice, to the existential threat of climate change — Americans of faith can call upon the power of prayer to provide hope and uplift us for the work ahead. As the late Congressman John Lewis once said, ‘Nothing can stop the power of a committed and determined people to make a difference in our society. Why? Because human beings are the most dynamic link to the divine on this planet.’”

He’s not much of a Catholic but he’s a true Leftist. He does want you to pray every day. But he wants you to pray to the government, to the climate and to race. He doesn’t care about God or religion because, as Marx said, “Religion is the opiate of the people” and government will find it impossible to control a population that knows there’s a higher power.

Just sad.

https://www.dailywire.com/news/devout-catholic-bidens-day-of-prayer-proclamation-leaves-out-god-pushes-leftist-agenda

 

https://www.dailywire.com/news/cuomo-will-segregate-baseball-games-with-vaccinated-unvaccinated-sections-give-free-tickets-to-those-who-get-the-jab

spacer
Jan292021

Episode 287 – Rolling Those Dice

The stock market is all a-buzz over the shares of GameStop soaring over 1700% in the last week. Looks like a bunch of kids in social media set Wall Street on fire.

I had to really brush up on my economics to figure this one out. Because I think that the Democrats will make a big stink out of this (indeed, it’s already happening), we should talk about it.

 

How Does the Stock Market Work

So a bunch of Reddit users decided to mess with the stick market, targeting their ire on the hedge fund managers on Wall Street. Regular folks who do not know much about the stock market are celebrating this. I thought it was kind of funny and wasn’t sure how it was legal until I listened to Tucker Carlson and the Ben Shapiro Show (you should subscribe).

The stock market is there so that people can invest in a public company. What’s nice about this is an individual can actually own part of a company and the company is able to raise funds to reinvest into the company. If a company has a good strategy and is well run, they have a good chance at making a profit making the company more desirable, raising the stock price. Likewise, a company with crappy management and no strategy will force the stock price to go down. Basically, the stock market is good because it gives an actual value to a company.

Sometimes a company will not have the correct value. It will either be priced to low of priced to high. If the price of a stock costs too much, people who know the value of a company will buy the stock, raising the price of the stock until it reaches the appropriate price. If a stock is priced to high, well, enter the hedge fund manager.

This is how it works:

  • A hedge fund manager will “borrow” a stock for a certain amount of time with the promise to return the stock plus a fee. Let’s say I borrow a stock that is overpriced at $100. I promise that, in a week, I will return the stock plus give the guy $10.
  • The hedge fund manager sells the stock, getting $100.
  • The stock corrects to $20.
  • The hedge fund manager buys the stock for $20.
  • He returns the stock to the original owner plus the $10. The hedge fund manager makes $70 profit on the stock.
  • This is called a “shorting a stock.”

Now, things can go wrong and this is where there is a lot of issues people have with hedge fund managers. Lets say that stock doesn’t go down but goes up to $300 a share. Then the hedge fund manager gets screwed because he has to buy it at $300 to return the stock and still has to pay the $10. This is called a “short squeeze.” What people hate about this is the government will usually bail out the hedge fund manager but will not usually bail out the regular guy.

I understand why people get mad at the government for doing this but I don’t know why people blame the hedge fund managers. It’s like people playing with the tax laws to pay less taxes. It’s the government’s fault.

 

Now enter Game Stop

Game Stop is a video game store. They sell game new and used consoles, new and used video games and collectibles. It is an expensive store and cannot compete with companies like Amazon. It is not particularly profitable. The stock price was $17.25 a share in January.

A bunch of Reddit users decided to screw with the market. What they did was get together and all of them started buying the Game Stop stock. This raised the price incredibly. One Reddit user bought 50,000 shares of the stock worth about $56,000. Hedge fund managers saw that the stock was inflated and thought they could make a killing (the stock doubled) so they went out to short sell the stock. But the Reddit users had different ideas.

Instead of selling their stocks, the Reddit users bought more. The stock ended up going to a little over $347 a share. That is over a 2000% increase in price! The hedge fund managers were screwed. I am not kidding when I say this: the hedge fund managers took billions of dollars in losses.

Today, the stock is dropping like a rock but the damage is done. As of this morning, shares of GameStop were down 44% and I’m sure it is going to be down by a lot more. The government is going to have to bail out those that lost their shirts and is very concerned about the situation.

Is this a good thing? Not really. It can be funny how the experts were completely fooled but it can also be true that this is not a good thing. It shows how easily the stock market can be manipulated. Don’t be surprised that this situation does not come up by the Left as showing how bad capitalism is. They will say it is an unstable system absent of any morality and that it needs to be changed.

So let’s get into that. First thing we need to take a look at is if this whole thing was legal.

 

Was This Legal?

The first thing I wondered was whether this was legal. Did these Reddit users break insider trading laws? The answer is no. Let me explain.

If Martha owns 1000 shares of the widget stock that is already at the market price, say, $10 a share. She may not make any money. She may decide that this isn’t good. So she calls all her friends and says that widgets are going to go straight up and they should buy as soon as possible before the stock soars. Her friends contact their friends and all start buying the stock. The stock begins to rise artificially based on Martha’s lie about the strength of the stock. When the stock hits $30 a share, Martha sells making a 200% profit. This is illegal. She artificially inflated the stock by lying to other buyers of the stock. This is fraud.

Insider trading violations can also occur in the opposite direction. If you didn’t know, I was talking about Marth Stewart, who served some time in jail for insider trading. She did not make a profit on those stocks but got a tip that her stocks would go down. She sold her stocks in order not to lose money. I think she ended up still losing $50,000.

But, in this case, the Reddit users did not hide anything. They said they were going to experiment with manipulating the stock market and screw the hedge fund managers. There was no lying and no fraud. So there were no laws broken. All it did was show the weakness of the stock market. These guys just made a lot of money while others lost their shirts.

 

Is This Unethical?

I had a conversation with a friend who lives with me. He wanted to know what this whole thing was about. That’s why I looked this up and learned what happened. We had the conversation about whether this was legal and I explained based of my understanding of this. But, then, he asked whether or not I thought this was ethical or moral. This is a great question and I had to think about it. I came up with an analogy.

One decides to go to a casino to gamble. Everyone knows that the goal of a casino is to take all your money so they can make a profit. Most people know that the slot machines are manipulated in order to payoff a certain amount. If I put in a dollar, I can expect the machine to payoff a certain amount to keep me playing. Every once in a while, the machine will payoff a jackpot. The casinos are not hiding this. They tell you, “These machines have the highest payouts.” Gamblers also know that once a machines hits a jackpot, he might as well find another machine because that machine will not payout anytime soon. In the old days, a winner would perform one more spin just so that other gamblers would not know the machine hit a jackpot, luring other gamblers to it.

Is the casino unethical for setting machines to only win at certain times? No because people already know or suspect this is happening.

Is the player that takes a spin unethical for taking a spin after winning a jackpot so other players will play the slot? No. He wants the machine to restart the count to another jackpot so he can play the machine later.

It might sound like a weird analogy but it’s not. The stock market is the casino of capitalism. Even the most professional stockbrokers know they could lose money at any time.

I’ll go a step further: I don’t blame the Reddit users for screwing around with the stock market, I blame the hedge fund managers for not doing their research. One would think that if a stock goes up 200% maybe one would ask why that is happening. Maybe, the hedge fund managers should have did a little more research before dumping billions of dollars into a stock without knowing what was happening with the stock. If one of those guys had jus read a Reddit post, they would have known what is going on. Or maybe they shouldn’t have just jumped on to this stock, right away, and waited to see what was happening.

So, no, I don’t think this is unethical. It is the risk one takes in the stock market. There is also a chance that the Reddit users could have failed and lost money also.

 

Was This Immoral?

I never like mixing morality with the stock market. That’s alright, I don’t mix morality with gambling (unless someone has a real problem). But I was asked if what the Reddit users did was moral and right.

I’d have to say no but maybe. Here’s why.

First thing I do is look at the motivation of the Reddit users.

First motivation, they wanted to experiment with manipulating the stock market. They were making an experiment. This, in itself, is not immoral. But remember this line from Shakespeare’s Romeo and Juliet: “The road to Hell is paved with good intentions” (OK, I know it wasn’t really Shakespeare who said this). They did not really research who would be hurt with this manipulation. I’m just not sure this makes what they did immoral based on my gambling analogy.

Second motivation was to screw hedge fund managers. I think this is immoral. They went out to hurt a specific group of people. I think that’s immoral no matter how rich they thought these people were. But, what’s worse, is the hedge fund managers aren’t going to get hurt as much as the casual, uneducated investors. The little guy is going to be the one holding the bucket. The hedge fund managers will get out in time and get a government bailout. It’s the individual that is going to lose their money. Screwing the average Joe, even the professional, I think is immoral.

Finally, they wanted to make money. The Reddit users took a risk, invested money on an experiment and succeeded. I see nothing immoral about this.

The question is if one motivation immoral does this make the entire action immoral? That’s a good question. But, again, I return to my casino analogy. The stock market is a game and it is gambling. One better be ready to deal with the losses. I lost nothing. That’s because I don’t gamble in the stock market. My 401K did not take a nosedive because I invest in preferred stocks. So, in the long run, I don’t think this was immoral. It is just about the motivations of the individual Reddit investor.

 

Was This a Good Thing for the United States or Capitalism

Two things can be true at once. I think this experiment was really funny and good for these folks for proving a point while working the system to make a ton of money. I do not hold any ill will against people who are clever.

That being said, I don’t think this was a great exercise for capitalism or Wall Street.

  • This screwed to little man. In screwed the casual, uneducated investor who has lost a lot of money.
  • It shows that the stock market has its vulnerabilities. This is inviting governmental regulations on the stock markets.
  • It shows the “evil” and “greed” of capitalism. Watch the Left say this is going to use this to “prove” that they need to change the system.
  • This is another excuse by Big Tech, supported by Democrats, to ban people. Already, that Reedit group was banned. A bunch of online trading apps have banned the trading of GameStop, Blackberry and AMC Theaters, all of which these Reddit users invested in. What was the reason? The group fomented hate speech and violence. What? This is bad. This the excuse Democrats and the Big Tech Bros will always use to limit the freedoms of people.

The last point is an important point. I even heard on Fox News’ The Five, mostly run by Conservatives that this could have been a Right Wing bucking of the system. Maybe, but usually the simple answer is the most accurate. Maybe it was a bunch of millennials with technical and economic experience that just wanted to mess around. Maybe this had nothing to do with overthrowing the system. Maybe these guys just wanted to experiment with the Stock Market.

Not everything, good or bad, must be political. It seems that even Conservatives forget that.

More reaction is coming.

https://www.dailywire.com/news/the-gamestop-controversy-what-you-need-to-know

spacer