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Facebook Is Banning Leftwing Users Like Me - and It's Going Largely Unnoticed Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=58084"><span class="small">Akin Olla, Guardian UK</span></a>   
Friday, 29 January 2021 13:21

Excerpt: "Facebook placed a number of leftwing organizers on a restricted list during Biden's inauguration. It's part of a much bigger problem."

'It sets a dangerous precedent, one made more alarming by Facebook's history of suppressing Black viewpoints and its tendency to see far left and far right activists as the same.' (photo: iStock)
'It sets a dangerous precedent, one made more alarming by Facebook's history of suppressing Black viewpoints and its tendency to see far left and far right activists as the same.' (photo: iStock)


Facebook Is Banning Leftwing Users Like Me - and It's Going Largely Unnoticed

By Akin Olla, Guardian UK

29 January 21


Facebook placed a number of leftwing organizers on a restricted list during Biden’s inauguration. It’s part of a much bigger problem

n response to the fascist riot at the US Capitol, Facebook engaged in a flurry of dangerous and misguided corporate authoritarianism. I, along with a number of other leftwing organizers, was deemed a threat to the inauguration of Joe Biden and placed on a restricted list that limited my ability to communicate with others. My account could no longer create Facebook groups or events, two tools that I’ve used over the last decade to coordinate protests and build entire organizations. I was also banned from commenting in Facebook groups, liking Facebook pages, and messaging Facebook pages. The restriction was to be removed the Saturday after the inauguration, but it only fully ceased apparently after public backlash. This is part of a long history of Facebook treating leftwing activists as if they were far-right extremists, and a pattern of silencing those who speak out against racism and fascism.

Facebook’s latest sweep went relatively unnoticed by most media outlets and was simply framed as a restriction of events in and around Washington DC leading up to the inauguration. Gizmodo was one of the first publications to pick up the story but the majority of its article barely mentions the fact that leftwing users in the United States were targeted and effectively silenced. Most of the relevant content of the article was pulled directly from a blogpost from Facebook itself. Gizmodo, like most other outlets that reported on the decision, seemed to imply that these bans were a net positive and, if anything, a little later than it would have preferred.

The lack of in-depth reporting on what was a massive new development in Facebook’s struggle to monitor itself is unfortunate. This sweep wasn’t as simple as restricting events around a certain location, which should be a troubling development on its own. Facebook targeted users across the US, and while Facebook has publicly claimed it sought out users with past violations, many of the leftwing users targeted had no such violations, according to Facebook itself. Attempts to seek clarity or appeal the decisions have been shut down by Facebook, and the scope of the restrictions have not been made public.

Strictly speaking, this may not be a legal or constitutional infringement on free speech; Facebook, as a private company, sets its own policies about who can use its platform and what opinions they can express. But it sets a dangerous precedent, one made more alarming by Facebook’s history of suppressing Black viewpoints and its tendency to see far-left and far-right activists as the same.

In August 2020, Facebook expanded its “Dangerous Individuals and Organizations policy”, aimed at removing the presence of far-right extremists from its website. It rid itself of many QAnon groups and far-right militias. But it is also struck at leftwing organizations, seeming to accept Trump’s post-Charlottesville “both sides” moral equivalency with little thought. Facebook removed It’s Going Down, a platform that has long provided on-the-ground analysis of mass protests. It also removed CrimethInc, an anarchist publication that provided a teenage me with a new lens in which to view formative events like the invasion of Iraq and the 2008 economic crisis. While both these sites are keystones of the left, they were quickly disappeared from Facebook with little public attention or reaction.

Facebook has also targeted individuals for merely speaking out against racism or responding to hate crimes. Natasha Marin, a Black anti-racism consultant, was temporarily banned for sharing a screenshot of a racist message she received. In response to Liam Neeson’s confession that he once roamed the streets looking for Black men to harm, Carolyn Wysinger, an activist and high school teacher, posted that “White men are so fragile and the mere presence of a Black person challenges every single thing in them.” It was a reasonable response to Neeson’s remarks and the long history of white men murdering random Black men. Facebook responded by deleting the post and threatening Wysinger with a temporary ban. The list goes on.

While Facebook may place the blame on complicated algorithms that they are working to address, it is clear the problem is deeper than that. In 2018, Mark Luckie, a Black former Facebook employee, illustrated a racist culture at Facebook. He and other Black employees have made frequent complaints about being aggressively accosted by security, dissuaded from joining Black working groups, and being called aggressive or hostile for simply sharing their thoughts in meetings. One employee shared a story in which they were asked to clean up after two white employees, despite being a program manager. In June 2020, Mark Zuckerberg declared that Black Lives Matter. A few months later, he restricted political posts in Facebook’s internal employee forum and banned the placement of text on profile pictures, preventing both employees who wanted to “Make America Great Again” or proclaim that “Black Lives Matter” from expressing themselves outside of specific, moderated groups – or through the use of pre-approved profile frames.

The conflation of the far-right with those speaking out and organizing against injustice continues to this day. On top of restricting my profile, and the profiles of others, Facebook has also moved to ban a new slate of leftwing organizations and individuals. The Socialist Equality party and the International Youth and Students for Social Equality were banned earlier this month with no warning or reason. Facebook has recently reversed this decision, but only after inquiries from the Financial Times. And now, Facebook is considering removing posts that critique Zionism.

Facebook has significant power and influence, and decisions like this are a clear argument for the desperate need to regulate the tech behemoths that increasingly decide who and what is heard. While my restriction was temporary, what is stopping Facebook from instating such measures again in the future, particularly during a moment of mass upheaval? The inauguration was such an event; Black radicals and others had every reason to protest the inauguration, but Facebook determined that any such protests were unacceptable. An organization which finds it so difficult to distinguish fascists from Black leftwing activists should not be trusted to make such decisions.

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FOCUS: The Biden Administration's Landmark Day in the Climate Fight Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=35861"><span class="small">Bill McKibben, The New Yorker</span></a>   
Friday, 29 January 2021 12:42

McKibben writes: "The climate movement has, finally, shifted the zeitgeist far enough for an Administration to act decisively, and Joe Biden has risen to the moment."

On January 27th, the president announced a series of climate actions that may well mark the beginning of the end of the fossil-fuel era. (photo: Anna Moneymaker/Getty)
On January 27th, the president announced a series of climate actions that may well mark the beginning of the end of the fossil-fuel era. (photo: Anna Moneymaker/Getty)


The Biden Administration's Landmark Day in the Climate Fight

By Bill McKibben, The New Yorker

29 January 21

 

anuary 27th was the most remarkable day in the history of America’s official response to the climate crisis, at least since that June afternoon in 1988, when NASA’s James Hansen told a congressional committee that the planet had begun to heat. On Wednesday, in the course of a few hours, the Biden Administration took a series of coördinated actions that, considered together, may well mark the official beginning of the end of the fossil-fuel era.

The Biden Administration temporarily paused the new leasing of federal lands and waters for fossil-fuel production, while speeding up the process of permitting renewables. The President pledged that the federal government would start buying electric cars in volume. His order sets up or strengthens offices in the Justice Department, the Energy Department, and the Environmental Protection Agency to focus on what he called “environmental justice.” He announced that climate change would become a national-security priority for the Pentagon. And all of this came after his earlier pledges to rejoin the Paris climate accord and to cancel the Keystone XL pipeline. There’s a shock-and-awe feel to the barrage of actions, and that is the point: taken together, they send a decisive signal about the end of one epoch and the beginning of another. And that signal, most of all, is aimed at investors: fossil fuel, Biden is making clear, is not a safe bet, or even a good bet, for making real money. Coal, oil, and gas are the past, not the future. They’re the present, too, of course—but you don’t make big-money bets on the present.

We may not get to that future fast enough to stave off truly disastrous global warming—the natural world made some announcements of its own this week, including the news that the melt from glaciers and ice sheets is in line with the worst-case scenarios that scientists have produced—and we won’t get to that safer future easily. The fossil-fuel industry is already hitting back hard against the Biden announcements, using the only argument it has left: jobs. But the Administration’s team was prepared for the onslaught—Biden styled his announcements as a job-creation scheme, predicting, for instance, that electric cars would create a million new jobs for autoworkers. And his aides made clear that they understood the need to cushion the blow in areas where oil, gas, and coal jobs are disappearing. “We’re going to make sure that nobody is left behind,” the domestic climate czar Gina McCarthy told reporters. “We need to put people to work in their own communities. That’s where their home is. That’s where the vision is. So we are creatively looking at those opportunities for investment, so that we can get people understanding that we are not trying to take away jobs.”

The difference between these actions and the responses of previous Administrations is that Biden isn’t hedging his bets. Probably the day’s most important development was the least remarked upon. The White House made clear that America would stop letting public funds from agencies such as the Export-Import Bank flow to fossil fuels, and that it would use its leverage at the World Bank and the International Monetary Fund to support the goals of the Paris accord. And then, crucially, John Kerry, who is coördinating the Administration’s global climate policy, made clear in a speech to virtual Davos that this dictum applied to natural gas. “The problem with gas is, if we build out a huge infrastructure for gas now to continue to use it as the bridge fuel—when we haven’t really exhausted the other possibilities—we’re going to be stuck with stranded assets in ten, twenty, thirty years,” he said. “Gas is primarily methane, and we have a huge methane problem, folks.”

This statement is enormously important, because gas has always been the Democratic Party’s climate vice. The Obama Administration was willing to take on filthy coal, but did little to rein in fracking for gas—Kerry’s predecessor as Secretary of State, Hillary Clinton, initiated a program within the State Department to encourage fracking abroad. It was that Administration’s concession to the power of the fossil-fuel industry, which has wagered much of its future on gas; since coal is in terminal decline and oil will see a slow but steady fall as the world electrifies its vehicle fleets, fracked gas was the last chance for real growth for the fossil majors. What Kerry is trying to do is foreclose that gas boom, and it’s likely to work. If you want a straw in the wind, consider the career of Heather Zichal, whose job put her at the center of the Obama Administration’s gas plan, and who, for a period after that Administration left office, served on the board of one of the nation’s largest liquefied-natural-gas exporters. Now she is the head of a new lobby called the American Clean Power Association, and on Wednesday she gave unflinching backing to the Biden plan. “If we’re going to remove 51 billion tons of greenhouse gas emissions annually and get to zero emissions in 30 years,” she told the Washington Post, “this is going to require drastic action.” Her members, she said, are prepared to invest a trillion dollars in the coming years on clean energy projects. “We see nothing but opportunity.”

And the fossil-fuel firms see nothing but trouble. Liam Denning, who edited the “Heard on the Street” column for the Wall Street Journal and wrote the “Lex” column for the Financial Times, explained yesterday for Bloomberg that two of the climate movement’s strategies for cutting off financial support for oil and gas are “delay and doubt.” He said, “The first erodes an investment’s value via the magic of the time value of money. The second does it by raising the cost of capital going in; if something looks riskier, it must clear a higher hurdle before anyone cuts a check to finance it.” Yesterday’s announcements “effectively cast a pall over the longer-term cash flows from oil and gas investments,” he added. “After a decade defined by easy financing and the safe assumption of continued growth, the past week’s politics reaffirm the 2020s present a far murkier prospect for oil and gas. Capital markets will price accordingly—and thereby shape the outcome.”

The climate fight is far from over—battles with the fossil-fuel industry will continue for the foreseeable future, and the outcome will determine the pace of the transition toward clean energy. (Keep an eye on the fate of the Dakota Access Pipeline and the Line 3 tar-sands pipeline in Minnesota—the new Administration’s climate logic should mean their cancellation, but it would be a heavy political lift.) But this week’s actions mark an unmistakable turning point. The climate movement has, finally, shifted the zeitgeist far enough for an Administration to act decisively, and Joe Biden has risen to the moment.

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Did Trump and His Supporters Commit Treason? Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=46091"><span class="small">Jeannie Suk Gersen, The New Yorker</span></a>   
Friday, 29 January 2021 09:22

Excerpt: "Punishments for disloyal acts are a means of insisting on who has legitimate power in our constitutional democracy, and of deterring those who are shown to be trying to destroy it."

Trump rioters at the U.S. Capitol. (photo: Samuel Corum/Getty)
Trump rioters at the U.S. Capitol. (photo: Samuel Corum/Getty)


Did Trump and His Supporters Commit Treason?

By Jeannie Suk Gersen, The New Yorker

29 January 21

 

or years, Carlton F. W. Larson, a treason scholar and law professor at the University of California, Davis, has swatted away loose treason accusations by both Donald Trump and his critics. Though the term is popularly used to describe all kinds of political betrayals, the Constitution defines treason as one of two distinct, specific acts: “levying War” against the United States or “adhering to their Enemies, giving them Aid and Comfort.” Colluding with Russia, a foreign adversary but not an enemy, is not treason, nor is bribing Ukraine to investigate a political rival. Ordering the military to abandon Kurdish allies in Syria, effectively strengthening ISIS, is not treason, either—though that is getting warmer. During Trump’s Presidency, Larson told me, his colleagues teased him by asking, “Is it treason yet?” He always said no. But the insurrection of January 6th changed his answer, at least with regard to Trump’s followers who attacked the Capitol in an attempt to stop Congress’s certification of the election. “It’s very clear that would have been seen as ‘levying war,’ ” he said.

Both of Trump’s impeachments, in 2019 and 2021, were for “high crimes and misdemeanors,” but the Constitution also names treason as an offense for which a President can be impeached. Individuals, including a former President, may also be criminally punished for treason, perhaps the highest offense in our legal system, carrying the possibility of the death penalty. Fearing abuse of treason charges, the Framers gave treason a narrow definition and made it extremely difficult to prove.

The Treason Clause dictates that a conviction can rest only “on the Testimony of two Witnesses to the same overt Act, or on Confession in open Court.” Partly as a result, there have been around forty treason prosecutions. No American has been executed for treason against the U.S., although Hipolito Salazar (a Mexican who officials thought was American) was federally executed for treason during the Mexican-American War, and some states have executed people for treason, including the abolitionist John Brown.

Larson wrote in his book “On Treason: A Citizen’s Guide to the Law,” from 2020, that the Framers “had a very specific image in mind—men gathering with guns, forming an army, and marching on the seat of government.” Few events in American history, if any, have matched that description as clearly as the insurrection of January 6th, which, court documents suggest, was planned by milita members who may have intended to capture elected officials. The American most associated with treason was one who did not “levy war” but rather gave “aid and comfort” to the enemy: Benedict Arnold. He at first fought heroically in the Revolutionary War but then attempted to aid the British; he fled to the enemy when his betrayal was discovered, and so was never punished. Treason prosecutions for levying war were brought against some individuals who took part in the Whiskey Rebellion of 1794, in which armed men burned down a tax collector’s house, and the Fries Rebellion of 1799, in which armed men stormed a prison and forced the release of tax resisters. Both resulted in conviction followed by pardon. The Jefferson Administration prosecuted the former Vice-President Aaron Burr, in 1807, for allegedly conspiring with a group of armed men to overthrow the U.S. government in New Orleans, but he was acquitted. In connection with that planned rebellion, the Supreme Court held that a mere conspiracy to levy war does not count as actually levying war. Another treason case resulted from the Christiana Riot, in which dozens of men fought the return of slaves to their owners as required by the Fugitive Slave Act. Supreme Court Justice Robert Grier, presiding at trial (as Justices did in those days), held that “levying war” had to involve an intent to overthrow the government or hinder the execution of law.

Southern secessionists who waged war against the United States were treasonous under any reading of the Treason Clause’s “levying war” standard. Jefferson Davis, the former U.S. senator turned President of the Confederacy, was indicted for treason in 1866. Before trial, however, Chief Justice Salmon Chase made clear his view that the Fourteenth Amendment, which had been ratified a few months earlier, precluded any other treason penalties for Confederates. Section 3 of the amendment bars from holding public office anyone who took an oath to support the Constitution and then “engaged in insurrection against” or gave “aid or comfort to the enemies” of the United States. Because of the Chief Justice’s interpretation, President Andrew Johnson gave up on the prosecution of Davis and granted amnesty to all former Confederates if they swore an oath to defend the Constitution and the Union.

In the past century, federal treason prosecutions generally have been “aid and comfort” cases. After the Second World War, a Japanese-American woman named Iva Toguri D’Aquino, better known as Tokyo Rose, was convicted of treason for broadcasting anti-American propaganda on Radio Tokyo; she was pardoned in 1977, after witnesses recanted. The poet Ezra Pound was famously prosecuted for Fascist propaganda broadcasts on Italian radio; the case was dropped in 1958, when he was found incompetent to stand trial. During the Cold War, Julius and Ethel Rosenberg were convicted and executed for conspiracy to commit espionage, not treason; the Soviet Union was not technically an enemy. After a half century of no federal treason cases, the indictment of the Al Qaeda spokesman Adam Gadahn, in 2006, was the first to concern giving aid and comfort to an enemy that was not a nation. Had Gadahn ever been tried, the defense might have argued that a terrorist group such as Al Qaeda isn’t an enemy as envisioned in the Treason Clause, though a federal district court assumed, in 2013, that it was. Gadahn was killed in Pakistan in 2015, by a C.I.A. drone strike.

Since the Capitol insurrection, there has been little talk of treason charges. Carlton Larson suggested that this was because “everybody now tends to think of treason as mostly aiding foreign enemies.” In his book “On Treason,” he even states that “levying war is arguably archaic, of interest only to historians,” and that, in the twenty-first century, “armed rebellions to overthrow the government are simply not going to happen.” But, to the Framers, such an insurrection was a paradigmatic case of treason. The founding-era Chief Justice John Marshall held in the treason trial of Aaron Burr that levying war entails “the employment of actual force” by “a warlike assemblage, carrying the appearance of force, and in a situation to practice hostility.” If some of those who attacked the Capitol assembled in order to incapacitate Congress—perhaps even by kidnapping or killing lawmakers—then their actions could be construed as an attempt to overthrow the government, and federal prosecutors could plausibly consider treason charges. As Larson put it, “At some point, you have to say, if that’s not levying war against the United States, then what on earth is?”

Last Tuesday, Mitch McConnell, who is now the Senate Minority Leader, said that the attackers “tried to use fear and violence to stop a specific proceeding of the first branch of the federal government which they did not like,” offering a narrower purpose than government overthrow. Investigators examining the emerging evidence on the scope of the plot might disagree. Federal law also makes it a separate felony for anyone who owes allegiance to the U.S. and knows of the commission of any treason to conceal it or not tell authorities. That vastly widens the net of those who could potentially be charged, including friends, acquaintances, and co-workers of the attackers. (Since the attack, many such individuals have, in fact, come forward to give information to law enforcement.)

The Treason Clause’s strict evidentiary rule of two witnesses to the act makes it exceedingly difficult to convict anyone of treason, even with so much conduct captured on video. But a treason case against Trump himself might conceivably be built, if prosecutors could establish that he knew in advance that his supporters planned to violently assault the Capitol, rather than peacefully protest; that he intended his speech urging them to “fight harder” to spur them to attack Congress imminently; and that he purposely didn’t do anything to stop the insurrection while it was unfolding—or, worse, intentionally contributed to a security failure that led to the breach. Then Trump would have engaged in treason along with supporters who attempted, in his name, to overthrow the U.S. government. At a minimum, it appears that Trump, along with top government officials, was aware that his followers were planning acts of violence. Trump did, however, say, in the midst of his incendiary speech, “I know that everyone here will soon be marching over to the Capitol building to peacefully and patriotically make your voices heard.”

Short of treason, a related federal law prohibiting rebellion or insurrection states that a person who incites “any rebellion or insurrection against the authority of the United States or the laws thereof, or gives aid or comfort thereto,” has committed a serious felony and is disqualified from holding federal office. This description is similar to the current article of impeachment against Trump: “for inciting violence against the Government of the United States.” If two-thirds of senators vote to convict Trump, a majority of the Senate could then vote to bar him from future federal office. But a Senate conviction requires the votes of at least seventeen Republicans and, so far, looks unlikely. A federal criminal conviction for inciting rebellion or insurrection may offer an alternative route to disqualifying Trump from holding office.

For the time being, the government has indicted more than a hundred and fifty people for crimes related to the insurrection, including unlawful entry, disorderly conduct, theft, destruction of property, firearms offenses, assault on police, conspiracy, obstruction of an official proceeding, obstruction of justice, and even curfew violation. Ongoing investigations will likely produce more indictments. In addition to potential homicide and terrorism charges, prosecutors have pledged to pursue the charge of “seditious conspiracy.” That crime overlaps with but covers more than treason; federal law defines it as any conspiracy “to overthrow, put down, or to destroy by force the Government of the United States, or to levy war against them, or to oppose by force the authority thereof, or by force to prevent, hinder, or delay the execution of any law of the United States, or by force to seize, take, or possess any property of the United States.”

While federal prosecutors could charge some of the leaders of the riot with treason, seditious conspiracy would be far easier to prove. It is clear that the rioters’ goal was, at a minimum, to delay Congress’s legally mandated counting of electoral votes. Prosecutors would need to prove that two or more people had agreed to undertake the seditious conduct, but, with respect to the rioters who were explicit about their aims and coördinated their actions, the evidence may well be sufficient, particularly given the violent result. More evidence might even enable charges against individuals who conspired to attack the Capitol but didn’t take part in the events. Some of those individuals might be elected officials. Representative Mikie Sherrill, a Democrat of New Jersey, has alleged that unnamed members of Congress “had groups coming through the Capitol that I saw on January 5th, a reconnaissance for the next day.” Soon afterward, the U.S. Government Accountability Office and the Capitol Police opened investigations into what roles members might have played in the siege.

If evidence were to emerge that members of Congress intentionally aided or incited the attack, they may face criminal consequences. It’s more likely, however, that Republicans who amplified Trump’s election-fraud lies will be sanctioned by their colleagues. Seven Democratic senators have filed an ethics complaint against the Republican Senators Ted Cruz, of Texas, and Josh Hawley, of Missouri, who led the effort to overturn the election in Congress. Representative Cori Bush, a Democrat of Missouri, has introduced a House resolution to investigate and potentially expel members of Congress who challenged states’ electoral votes. Bush said, in a tweet, that they “incited this domestic terror attack through their attempts to overturn the election.” Mitch McConnell may agree. He has pointedly acknowledged that the mob was “provoked by the President and other powerful people,” implying that fellow-lawmakers might bear responsibility. But, whatever moral condemnation or political remedy is appropriate, criminal charges cannot be brought against congresspeople such as Hawley and Cruz solely for using a legal process to challenge electoral votes in Congress. It is unlikely that any Republican politician thought they’d succeed in overturning the election, and it may be hard to distinguish their moves in Congress, at least legally, from a few Democrats’ challenges to states’ electoral votes in 2001, 2005, and 2017.

Even if Congress doesn’t censure or expel any of its members, the Senate declines to convict Trump, and federal prosecutors decline to bring charges against any of them, Trump and lawmakers who tried to overturn the election could still be held accountable through Section 3 of the Fourteenth Amendment, the same provision that was intended to prevent former Confederates from holding office. If Trump and the officials tried to run for office again, a lawsuit could claim that they “engaged in insurrection or rebellion” within the meaning of the Fourteenth Amendment, and, if the evidence bears it out, some could be disqualified from holding office. But, apart from any of these remotely possible legal remedies, Republicans who helped foment the attack are facing political repercussions: in the weeks since the riot, Hawley has had a fund-raiser and a book contract cancelled, and Missouri’s two biggest newspapers have called for his resignation. But, alas, in our divided country, Republican officials who denounced the insurrection or voted to impeach Trump may also face the ire of many Republican voters.

The past month has required both affirmation of the strength of our democracy and recognition of its fragility. Laws against treason, sedition, rebellion, and insurrection may seem obscure or arcane, but they are on the books for those real instances in which the expression of strong beliefs, which is constitutionally protected, crosses into actions that fundamentally betray and threaten our government. In times of intense division, such actions pose more danger even as their meaning becomes more contestable. The deep split that cracked open during one of the most consequential transfers of power in history—which, as it turned out, was militarized and not exactly “peaceful”—is apparent in the fact that one side’s patriot is the other side’s traitor. Punishments for disloyal acts are a means of insisting on who has legitimate power in our constitutional democracy, and of deterring those who are shown to be trying to destroy it. The legal terms may seem archaic, and sometimes have been misused or abused, but that should not blunt their precise relevance to our unfortunate contemporary situation.

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The GameStop Bubble Is a Lesson in the Absurdity and Uselessness of the Stock Market Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=56227"><span class="small">Doug Henwood, Jacobin</span></a>   
Friday, 29 January 2021 09:22

Excerpt: "The online pranksters behind the great GameStop bubble of 2021 are probably going to lose a lot of money. But they've done the world a service by reminding us of the utter uselessness of the stock market, an institution that serves no purpose besides making a small number of undeserving people rich."

The online pranksters behind the great GameStop bubble of 2021 are probably going to lose a lot of money. (photo: Getty)
The online pranksters behind the great GameStop bubble of 2021 are probably going to lose a lot of money. (photo: Getty)


The GameStop Bubble Is a Lesson in the Absurdity and Uselessness of the Stock Market

By Doug Henwood, Jacobin

29 January 21


The online pranksters behind the great GameStop bubble of 2021 are probably going to lose a lot of money. But they’ve done the world a service by reminding us of the utter uselessness of the stock market, an institution that serves no purpose besides making a small number of undeserving people rich.

ho knew GameStop would itself become such a game?

Last summer, the video game retailer was seen as a fading brick-and-mortar operation. It was losing money, sales had been shrinking for years, and the stock was trading for around $4 a share. As I’m writing this on the afternoon of Wednesday, January 27, its stock is trading at $339 a share. At the close of trading on Tuesday, it was a mere $148. Not a bad overnight return, 129 percent. Three days earlier, it was at $38. It was up nearly tenfold in less than a week. Why?

To answer that requires explaining the concept of short selling, which most civilians find nearly incomprehensible. A short sale is a bet that a stock (or any other speculative asset, like bonds or gold) is going to decline in price. But to make that bet, you have to sell something you don’t already own, which is not normal behavior. To accomplish this, you have to borrow the stock from somebody who does own it. As with any loan, you have to pay interest on the borrowed asset. And you also have to keep some collateral on deposit with your broker as an assurance you’re good for the money. The hope is that the price will fall, and you can buy the shares — cover the short, in the jargon — at a lower price. Your profit would be the difference between the original sale price and the closing purchase price, minus any interest paid on the borrowed asset.

But what if you’re wrong, and the price rises? Then you’re in trouble. When you buy a stock, your risk is that you could lose the entire purchase price — but no more. With short selling, if you’re wrong, there’s no predetermined limit to how much you can lose if the price keeps rising. And if the price keeps rising, your broker will demand more collateral in the form of real money. You have a choice between giving up — covering the short and taking the loss — or keep pouring more collateral into a losing position in the hope that things will finally turn your way.

Back to GameStop. Last August, the investor Ryan Cohen, who founded the online pet food merchant Chewy and sold it for a handsome profit, started buying GameStop shares. He told the company that it needed to get with the digital age, close a lot of stores, and move online. Investors, expecting a better future for the flailing retailer, snapped up shares, tripling their price by the end of November. That was unjustified optimism, perhaps, but not outlandish. But some hedge funds, notably Melvin Capital Management, began shorting GameStop, believing the tales of recovery were delusional.

Cue the habitués of the subreddit Wall Street Bets, with a user known as DeepFuckingValue among the ringleaders, who began talking up the stock and buying shares. They were motivated not merely by the prospect of making money, but also for the lulz of bankrupting some hedgies. They began buying the stock in size, as they say on Wall Street. The ensuing price rise forced the shorts like Melvin to cover. Their demand for the stock, plus the Redditors’, launched the share price on a moon shot.

GameStop has turned into one of the great bubbles of our time. On Tuesday, January 26, more stock in GameStop was traded than in Apple, the biggest stock of all, with a total market value 108 times the retailer’s. As James Mackintosh of the Wall Street Journal put it, the price action and trading volume together suggest “widespread disturbance to people’s judgment.”

Bubbles like this always end in a crash, and those Redditors who haven’t sold their shares will be left holding a very depleted bag. (Surprisingly, news that Melvin closed out its short position late on Tuesday seems not to have dampened the party. A bubble usually goes on far longer than mere rationalists can predict.) In the meanwhile, it’s funny to see some Wall Streeters complain that there’s something unfair about this action, since these are the sorts of games they play with each other and the general public all the time. They talk up stocks or talk them down, depending on their interests, and plot against what they see as weak or vulnerable players all the time. It’s just that the speculators with names like DeepFuckingValue who are savaging them for now are the wrong kind of people. They don’t live in Greenwich in houses with twenty-car garages.

Even more amusing are the earnest sorts who think these games somehow pervert the function of the stock market. As Business Insider columnist Josh Barro declared on Twitter: “I know people think this is fun but — why do we have a stock market? So productive firms can raise capital to do useful things. Detaching stock price from fundamental value (Gamestop is now worth almost as much as Best Buy) makes the markets serve the real economy worse.”

What’s funny about these comments, aside from their earnestness in the midst of low comedy, is that the stock market has almost nothing to do with raising money for productive investment. Almost all the stock that trades on the market, including GameStock, was issued years ago, meaning that companies don’t see a dime of the daily action. Firms do issue stock now and then, in so-called initial public offerings (IPOs), but over the last twenty years, according to finance professor Jay Ritter’s data, IPOs have raised a cumulative total of $657 billion, well under 2 percent of total business investment in things like buildings and equipment over the same period. In the real world, as opposed to Barro’s imagination, firms raise almost all their investment funds internally, through profits. Rather than raising money from shareholders, businesses shovel out vast buckets of money to them. Since 2000, the five hundred large companies that make up the Standard & Poor’s 500 stock index have spent $8.3 trillion buying their own stock to boost its price — over half their profits over the period, and equal to almost 20 percent of business investment over the two decades. Stock buybacks not only make the shareholders happy, but they also fatten CEOs’ paychecks, since bosses these days are paid mainly in stock.

Lulz aside, this drama, like the seemingly endless rise in stock prices since 2009, interrupted briefly by the COVID-19 scare last March, is a sign of a financial system totally out of touch with economic reality. Trillions in government aid to business and Federal Reserve infusions into the financial markets have created a monstrous gusher of money with nowhere to go but speculative assets, at a time when ICUs are at capacity and 24 million people tell Census Bureau interviewers that they’re having trouble getting enough to eat. Barro would do better to worry about that.

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Can Green Energy Power the Cannabis Boom? Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=35861"><span class="small">Bill McKibben, The New Yorker</span></a>   
Thursday, 28 January 2021 13:25

McKibben writes: "To see the Biden Administration starting to move on the climate challenge is invigorating, but it's worth remembering how far behind we are."

Agricultural communities around the country are commercializing the cannabis trade for the sake of tax revenue, and thus laws governing its cultivation will be needed. (photo: George Rose/Getty)
Agricultural communities around the country are commercializing the cannabis trade for the sake of tax revenue, and thus laws governing its cultivation will be needed. (photo: George Rose/Getty)


Can Green Energy Power the Cannabis Boom?

By Bill McKibben, The New Yorker

28 January 21

 

ast week’s newsletter was about the need to stop burning things, but there’s at least one area where I know that this advice is a lost cause. That’s at the small blaze at the end of a joint: marijuana stocks are booming in the wake of the U.S. Senate wins in Georgia, which gave the Democrats a majority in that chamber, since investors reckon that Democrats are likely to continue along the steady path toward legalization.

The amount of carbon produced by burning pot is not actually a concern. But it turns out that producing the crop, at least the way that it’s grown by large-scale entrepreneurs, requires huge amounts of electricity. As early as 2012, it was estimated that one per cent of the country’s electricity was used for raising pot. In California, the leading state in production, it was three per cent. An indoor growing facility can have the lighting intensity of a hospital operating room, which is five hundred times recommended reading levels; researchers from the National Coalition of State Legislatures found that a five-thousand-square-foot indoor farm in Boulder County, Colorado, was using 41,808 kilowatt hours per month, while an average household used about 630 kilowatt hours. Many growers apparently pair their bright lights with high-powered air-conditioning in order to “shorten a plant’s growing cycle.” The researchers added—and here I must confess my own preference—that “the energy used to produce one marijuana cigarette would also produce 18 pints of beer.”

Those numbers really are large and mean that, right at the moment when we need to be desperately reducing the amount of energy we use, we’ve found a huge new electricity hog. Yes, that energy can be produced by the sun, but for the foreseeable future the best use of new solar panels and wind turbines is to displace existing uses, not underwrite new ones. One of the first people to write me about the issue was a small-scale solar operator named Naoto Inoue, the C.E.O. of Solar Market, who began building arrays in New England about fifteen years ago. “So many people’s efforts to reduce the carbon footprint is going down the drain because of indoor-grow greed,” he said.

It’s an especially ironic use of power because of marijuana’s history in the otherwise green counterculture and because you can grow it outdoors—in the sunlight. In Vermont, where I live, each resident is allowed to grow six plants, and, although I haven’t taken advantage of the law, I know that six plants turns out to be a lot. Here, pot is the new zucchini, and if you leave your car unlocked when you go shopping you may return to find a sack of the stuff on the back seat. If any commodity could be left as a part of a local gift economy, it seems like it might be marijuana; but here, as in other places, we’re quickly commercializing the trade, in order to reap state-tax revenue. In which case, laws governing its cultivation will be required: Massachusetts is making larger growers use no more than thirty-six watts of electricity per square foot, down from a typical forty to forty-five watts; in Maine, growers can apply for state grants to make their operations more energy-efficient. Perhaps sun-grown pot, like shade-grown coffee, will catch on: last week, a prospective grower in the Berkshires sought local approval for a farm with promises about outdoor, artisanal cultivation.

Inoue’s solution is a heavy carbon tax for growers—with a high enough tariff, the advantage will switch back to outdoor growers. Barring that, new installations should come with their own renewable-energy construction. Barring that, I.P.A.s.

Passing the Mic

About half of all products on grocery shelves contain palm oil, and production has doubled in the past decade. The James Beard Award-winning food journalist Jocelyn Zuckerman has travelled from Indonesia and Malaysia to Brazil and India looking at the vast plantations where the oil palms are grown. Her forthcoming book, “Planet Palm,” is a compelling look at just how much trouble it’s possible to cause with a single plant. (Our conversation has been edited for length and clarity.)

Palm oil seems to cause more havoc per ounce than almost any commodity, and yet we’ve barely heard of it. Why is it so bad?

The main problem is its effect on the environment. The oil palm plant grows best at ten degrees to the north and south of the equator. Unfortunately, that swathe also corresponds with the planet’s tropical rain forests. Not only are these ecosystems important for sequestering carbon but they support more than half the world’s plant and animal species. We now know that global biodiversity is declining faster than at any time in human history, with far-reaching consequences in terms of pollination and pest control, among other things. The demise of a single species can lead to the collapse of an entire ecosystem, affecting local communities and ultimately destabilizing economies and governments. The region targeted for oil-palm development also overlaps with much of the earth’s peatlands—soils formed over thousands of years through the accumulation of organic matter—and draining and burning this terrain to make way for plantations sends massive quantities of carbon dioxide into the atmosphere. Finally, we’re flirting with pandemic disaster. Some seventy-five per cent of today’s emerging infectious diseases originate in animals, and sixty per cent of those can spread directly from them. Over the past few decades the number of such animal-to-human, or “zoonotic,” transmissions has skyrocketed. A third of these new diseases can be linked directly to deforestation and agricultural intensification, most of it involving tropical rain forests. Mowing down these natural treasures doesn’t just push iconic animals like the orangutan to the brink of extinction; it also sends virus-carrying wildlife like bats in search of new habitat, forcing them into closer contact with humans.

Do we really need this stuff to keep our economies functioning—and what about the economies of the countries it comes from?

I guess I’d start by asking whether our economies are “functioning” in the first place. The Labor Department just announced that 1.15 million workers filed for unemployment in the first week of 2021. The World Food Programme says that it will need to feed a hundred and thirty-eight million people this year—more than at any time in its sixty-year history. Meanwhile, the world’s richest one per cent owns forty-four per cent of the global wealth. Let’s also consider where the oil ends up. Some two-thirds of global production finds its way into food, most of it fried and/or ultra-processed. In recent years, rates of obesity and Type 2 diabetes have shot dramatically up, particularly in the low-income countries where Big Food is now focussed on dumping its industrial-palm-oil-enabled junk. What is the cost to those countries’ economies of treating the diseases resulting from these unhealthy new diets? How about the lost income of those sidelined laborers? Yes, the economies of Indonesia and Malaysia, which together account for some eighty-five per cent of the world’s palm-oil production, are deeply reliant on the commodity. But they are also facing public-health crises related to shifting diets. Palm-oil laborers in Southeast Asia, meanwhile, make around seven dollars a day, and studies have found that diets in communities where the palm-oil industry has moved in are far less healthy than those of traditional communities living in the same region. We won’t get into the agrochemicals that poison workers and local waterways.

What are the effective pressure points on the governments that allow this, and the corporations that encourage it? Are there some hopeful signs?

Unfortunately, as in Trump’s America and Bolsonaro’s Brazil, the governments in Southeast Asia tend to be a part of the problem, more concerned about cozying up to industry than protecting the health of their citizens or the planet. The Indonesian President recently signed an omnibus bill that will eliminate critical protections for workers and the environment. Next door in Malaysia, the government routinely spreads disinformation about the palm-oil industry’s environmental and social impacts, and has paid a D.C. lobbying firm some million dollars to counter opposition to it. Here as elsewhere, it’s been civil society and the private sector leading the way. Consumers and N.G.O.s have pushed traders and other companies to sign no-deforestation agreements and have raised awareness about institutional investors linked to palm-oil-related deforestation. Local communities from Cameroon to Guatemala and Papua New Guinea are stepping forward to sound the alarm about illegal oil-palm concessions, are demanding indigenous land rights, and are speaking out about labor and human-rights abuses. It’s a tough climb—there are massive interests at stake, and these people do not play pretty—but I think that, as more folks come to understand what this industry is all about and exactly what’s at stake, there may be room for some cautious optimism.

Climate School

To see the Biden Administration starting to move on the climate challenge is invigorating, but it’s worth remembering how far behind we are. As the Washington Post reports, new data from the journal Nature Communications on the Antarctic show that the Southern Ocean is warming “faster than predicted,” threatening to erode glaciers from below where they stretch out over the sea. “Like removing a doorstop, the collapse of these ice shelves can free up inland ice to move into the ocean, raising global sea levels and harming coastal communities.”

With the Keystone XL pipeline dead, indigenous campaigners are pushing the Biden Administration to shut down the Dakota Access pipeline, too, and stop construction on Minnesota’s Line 3. Dallas Goldtooth, a member of the Mdewakanton Dakota and Dine nations and the Keep It in the Ground campaign organizer for the Indigenous Environmental Network, said that the KXL decision “is a vindication of ten years defending our waters and treaty rights from this tar-sands carbon bomb. I applaud President Biden for recognizing how dangerous KXL is for our communities and climate, and I look forward to similar executive action to stop DAPL and Line 3 based on those very same dangers.” The Ponca elder Casey Camp-Horinek also wrote an eloquent letter to the President. Meanwhile, a United Nations commission chastised the Canadian government for not getting buy-in from First Nations on various pipeline and energy-development plans.

Oil executives talking to Bloomberg said that the KXL cancellation may end the era of “mega-pipelines.” “I can’t imagine going to my board and saying, ‘we want to build a new greenfield pipeline,’ ” the Williams Companies’ C.E.O., Alan Armstrong, said in an interview, noting that his company has seen pipeline projects shut down by regulators. “I do not think there will be any funding of any big cross-country greenfield pipelines, and I say that because of the amount of money that’s been wasted.”

Scoreboard

Columbia University has joined Cornell and Brown as the third Ivy to move toward full divestiture from fossil fuels. “There is an undeniable obligation binding upon Columbia and other universities to confront the climate crisis across every dimension of our institutions,” Lee C. Bollinger, the president of the university, said. “The effort to achieve net zero emissions must be sustained over time, employing all the tools available to us and engaging all who are at Columbia today and those who will follow us in the years ahead. This announcement reaffirms that commitment and reflects the urgent need for action.”

An Israeli company announced new batteries for electric cars that can be recharged in just five minutes. “The number one barrier to the adoption of electric vehicles is no longer cost, it is range anxiety,” Doron Myersdorf, the C.E.O. of StoreDot, the company that made the breakthrough, said. “You’re either afraid that you’re going to get stuck on the highway or you’re going to need to sit in a charging station for two hours. But if the experience of the driver is exactly like fuelling [a petrol car], this whole anxiety goes away.”

The Saudi oil giant Aramco misreported its carbon emissions—by half.

The Bank of France moved toward the head of the line of central banks greening their portfolios. It’s out of the coal business and, according to Reuters, the bank said in a statement that by 2024 it “would also exclude companies with more than 10% of revenue coming from oil or 50% from gas, which could potentially mean the central bank would have to shun groups like French energy major Total.”

The Times reports that, on Tuesday, Larry Fink, the C.E.O. of Blackrock, in his annual letter to investors, told the boards of companies in which it invests “to disclose a plan for how their business model will be compatible with a net-zero economy,” which he defined as limiting global warming to no more than two degrees Celsius above pre-industrial averages and eliminating net greenhouse-gas emissions by 2050.” On the same morning, New York City announced that its pension funds had divested four billion dollars from fossil-fuel companies. And the evening before, Senator Chuck Schumer, known in Washington as a champion of Wall Street, used far stronger language than he has in the past to demand climate action. “If there ever was an emergency, climate is one. So I would suggest that [the Biden Administration] explore looking at climate as an emergency, which would give them more flexibility,” he told Rachel Maddow, on MSNBC.

Warming Up

I find, in the absence of the ex-President’s tweets, that I’m able to let my guard down a little more these days. The musician Elori Saxl has produced an album perfect for decompressing, “a meditation on the effect of technology on our relationship with land/nature/place that ultimately evolved to be more of a reflection on longing and memory.” It combines digitally processed recordings of wind and water with electronic synthesizers and chamber orchestra. Half of the piece was written “in the Adirondack mountains of northern New York in summer surrounded by lakes, rivers, and moss-covered forest floors, and the other half on a frozen island in Lake Superior in deep winter.”

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