The Full Belmonte, 1/20/2023
Supreme Court has failed to find leaker of abortion opinion
By MARK SHERMAN and JESSICA GRESKO
FILE - Light illuminates part of the Supreme Court building at dusk on Capitol Hill in Washington, Nov. 16, 2022. The Supreme Court said Thursday, Jan. 19, 2023, that it has not determined who leaked a draft of the court's opinion overturning abortion rights, but that the investigation continues. (AP Photo/Patrick Semansky, File)
“WASHINGTON (AP) — The Supreme Court said Thursday an eight-month investigation that included more than 120 interviews and revealed shortcomings in how sensitive documents are secured has failed to find who leaked a draft of the court’s opinion overturning abortion rights.
Ninety-seven employees, including the justices’ law clerks, swore under oath that they did not disclose a draft of Justice Samuel Alito’s opinion that overturned Roe v. Wade, the court said.
It was unclear whether the justices themselves were questioned about the leak, which was the first time an entire opinion made its way to the public before the court was ready to announce it.
Politico published its explosive leak detailing the Alito draft in early May. Chief Justice John Roberts ordered an investigation the next day into what he termed an ‘egregious breach of trust.’
On Thursday, the court said its investigative team ‘has to date been unable to identify a person responsible by a preponderance of the evidence.’
The investigation has not come to an end, the court said. A few inquiries and the analysis of come electronic data remain.
The court said it could not rule out that the opinion was inadvertently disclosed, ‘for example, by being left in a public space either inside or outside the building.’
While not identifying the leaker, the investigation turned up problems in the court’s internal practices, some of which were exacerbated by the coronavirus pandemic and the shift to working from home.
Too many people have access to sensitive information, the court’s policies on information security are outdated and, in some cases, employees acknowledged revealing confidential information to their spouses. It was not clear from the report whether investigators talked to the justices’ spouses.
Some employees had to acknowledge in their written statements that they ‘admitted to telling their spouses about the draft opinion or vote count,’ the report said.
Investigators looked closely at connections between court employees and reporters, and they found nothing to substantiate rampant speculation on social media about the identity of the leaker.
The investigation concluded that it ‘is unlikely that the Court’s information technology (IT) systems were improperly accessed by a person outside the Court,’ following an examination of the court’s computers, networks, printers, and available call and text logs.
The ‘risk of both deliberate and accidental disclosures of Court-sensitive information’ grew with the coronavirus pandemic and shift to working from home, the report said. More people working from home, ‘as well as gaps in the Court’s security policies, created an environment where it was too easy to remove sensitive information from the building and the Court’s IT networks,’ the report said.
Roberts also asked former Homeland Security Secretary Michael Chertoff, himself a onetime federal judge, to assess the investigation. Chertoff, in a statement issued through the court, described it as thorough.
Politico published the draft decision on May 2. Less than 24 hours later, Roberts confirmed the draft’s authenticity and said he had directed the court’s marshal, former Army Col. Gail Curley, to lead the investigation.
Since then, there had been silence from the court — until Thursday.
The court had declined to say anything about the status of the investigation or whether an outside law firm or the FBI has been called in or whether it had taken steps to try to prevent a repeat. Speaking in Colorado in September, Justice Neil Gorsuch said he hoped a report was coming ‘soon’ but he did not say whether it would be made public.
Gorsuch joined Roberts in condemning the breach of trust the leak engendered. Justice Clarence Thomas spoke in even starker terms about the leak’s effect on the justices.
‘When you lose that trust, especially in the institution that I’m in, it changes the institution fundamentally. You begin to look over your shoulder. It’s like kind of an infidelity that you can explain it, but you can’t undo it,’ Thomas said while speaking at a conference in Dallas less than two weeks after the leak became public.
The leak itself sparked protests and round-the-clock security at justices’ homes. Alito said it made the conservative justices who were thought to be in favor of overturning Roe v. Wade ‘targets for assassination’ that ‘gave people a rational reason to think they could prevent that from happening by killing one of us.’
In early June, a man carrying a gun, a knife and zip ties was arrested near Justice Brett Kavanaugh’s house in Maryland after threatening to kill the justice. The man told police he was upset by the leaked draft.
Responding to protests outside the court, officials ringed the building with hard-to-climb fencing, the same barrier that was in place for months following the Jan. 6, 2021, attack on the Capitol.
When the final decision was released on June 24, it was remarkably similar to the draft that was leaked. Alito, Thomas, Gorsuch, Kavanaugh and Justice Amy Coney Barrett voted to overturn Roe.
Speculation has swirled since the draft’s release about who might be the source. Only the justices, a small number of staff and the justices’ law clerks, young lawyers who spend a year at the court helping the justices with their work, would have had access to the document.
Conservatives pointed fingers at the liberal side of the court, speculating that the leaker was someone upset about the outcome. Liberals suggested it could be someone on the conservative side of the court who wanted to ensure a wavering justice didn’t switch sides.
It would have taken just one conservative justice to side with Roberts to alter the decision. Instead of overturning Roe entirely, Roberts favored weakening abortion rights.” [AP News]
John Moore/Getty Images
“The FAA says contractors unintentionally grounded thousands of flights last week when they deleted files while working on the Notice to Air Missions(NOTAM) system. Investigators have found no evidence of malicious intent.” [NPR]
As Roe v. Wade marks 50th anniversary, advocates push further
“Crowds are expected to gather this weekend for a march dubbed ‘Bigger Than Roe’ in support of reproductive rights. The gathering on Roe v. Wade's 50th anniversary comes as advocates feel mixed emotions about the future of abortion access.
The background: The Dobbs v. Jackson Women's Health Organization decision in June 2022 that overturned Roe v. Wade devastated abortion access in large swaths of the country. Abortion clinics in restrictive states began to shutter almost immediately. People seeking abortion care were forced to travel across state lines. And in states where abortion remains legal, providers were quickly overwhelmed by patients.
•Galvanized by a surge in organizing energy after last year’s ruling, abortion advocates are using the momentum to reimagine access from the ground up with efforts in state courts and legislatures, as well as grassroots aid like abortion funds.
•Recent wins for increased abortion access: An FDA green light for pharmacies to provide abortion pills, a Justice Department decision to allow the United States Postal Service to deliver the pills and challenges to state abortion bans.
•Anti-abortion protesters will gather Friday at the annual March for Life, days before the 50th anniversary of Roe with the theme ‘Next Steps: Marching in a Post-Roe America.’ For anti-abortion activists, the Dobbs decision was also a motivating moment and ‘an enormous milestone,’ one advocate said.” [USA Today]
Pro-life activists try to block the sign of a pro-choice activist during the 2018 March for Life January 19, 2018 in Washington, DC.
Alex Wong, Getty Images
U.S. hits debt ceiling
“The United States hit its borrowing limit and started taking ‘extraordinary measures’ on Thursday to avoid defaulting on what it owes, Treasury Secretary Janet Yellen told Congress. The amount of time the Department can continue taking steps to avoid defaulting on the debt unless the $31.381 trillion limit is raised is uncertain, Yellen wrote in her letter to lawmakers. But the government is expected to be able to keep operating until at least June. Some House Republicans are insisting Democrats agree to spending cuts in exchange for Congress raising the debt limit, while the White House insists the limit be raised ‘without conditions.’” Read more at USA Today
Treasury Secretary Janet Yellen speaks at the Treasury Department in Washington, Jan. 10, 2023.
Carolyn Kaster, AP
Stamping out organic fraud
Illustration: Sarah Grillo/Axios
“The government has new rules to determine what's really organic and what's a sham.
Why it matters: The term ‘organic’ has been stretched over the years as these foods become increasingly popular — and pricey. Products labeled organic that don't meet government standards are hitting store shelves, Axios' Erica Pandey writes.
Case in point: The Justice Department recently charged several individuals in a multimillion-dollar scheme to sell ordinary soybeans from Eastern Europe as organic in the U.S.
Organic soybeans cost up to 50% more than their nonorganic counterparts.
Driving the news: The Department of Agriculture is cracking down on fakes with its biggest-ever overhaul of organic guidelines, released today.
The changes include requiring those in the middle — such as traders and brokers — to be certified alongside the food producers themselves, per The Washington Post. There will also be more inspections and required certification for imports.
The big picture: U.S. organic food sales hit $57.5 billion in 2021 — more than double what they were about a decade ago, per Food Dive.
Reality check: ‘Though some consumers view 'organic' as a synonym for 'healthy,' the science on whether organic food is healthier is mixed,’ The Washington Post's Laura Reiley writes.” [Axios]
Snowstorm
“A large swath of the Northeast US is gearing up for several days of heavy snow, freezing rain -- or a mix of both -- that could create treacherous road conditions. About 7 million people in the storm's path were under winter weather alerts early this morning as the first round of snow began in Vermont, New Hampshire, Massachusetts and Maine. The forecast has prompted some officials to urge residents to prepare for the storm and be ready for potentially hectic commutes. Weather warnings in the region show some cities could pick up between six and nine inches of snow. This comes after the storm already proved hazardous in parts of the Midwest, where dozens of car crashes were reported in Minnesota earlier this week.” [CNN]
Biden
“President Joe Biden on Thursday made his first public remarks since batches of classified documents from his time as vice president were found at his private Washington, DC, office and Wilmington, Delaware, home. ‘I think you're gonna find there's nothing there. I have no regrets,’ Biden said about not revealing earlier that the documents had been discovered. Special counsel Robert Hur is investigating how the president and his team handled the Obama-era classified documents that were recently found in his private possession. The first documents were found on November 2, days before the midterm elections, but not publicly revealed until last week when CBS first reported their existence. The White House has pledged full cooperation with the investigation but is largely downplaying the political effects of the probe.” [CNN]
Immigration
“The Biden administration on Thursday unveiled a new program to allow private citizen groups to sponsor refugees from around the world. Under the program, groups of at least five individuals can apply to sponsor refugees to live in the US and help them acclimate to life in the country with the help of a consortium of non-profit resettlement organizations. The program, called the Welcome Corps, was billed by Secretary of State Antony Blinken as ‘the boldest innovation in refugee resettlement in four decades.’ The sponsor groups must raise a minimum of $2,275 per refugee, and those funds will provide initial support for expenses like apartment security deposits, clothing and furniture. All refugees being supported through the program will be cleared through the same extensive security vetting required for all refugees admitted to the US, a senior State Department official said.” [CNN]
New Details Emerge of Meeting Between Proud Boys and Oath Keepers
Prosecutors in the Proud Boys sedition trial disclosed more about an encounter in a garage between leaders of the far-right groups the day before the attack on the Capitol.
By Alan Feuer and Zach Montague
Jan. 19, 2023
“It has always been one of the most intriguing stories surrounding the storming of the Capitol: On the evening of Jan. 5, 2021 — a day before the building was attacked — the leaders of the two far-right groups that ultimately played a central role in the assault came face-to-face in an underground parking garage on Capitol Hill.
The mysterious meeting brought together Enrique Tarrio, the chairman of the Proud Boys, and Stewart Rhodes, the leader of the Oath Keepers militia. Now part of Capitol riot lore, it has been described alternately as proof of a conspiracy between the organizations and as an innocuous encounter by two like-minded men who were both in Washington that day to support President Donald J. Trump.
On Thursday, prosecutors overseeing the seditious conspiracy trial of Mr. Tarrio and four other members of the Proud Boys revealed new details about the meeting that only served to make it more tantalizing — and elusive.
Without the jury present, the prosecutors told Judge Timothy J. Kelly, who is presiding at the trial, that a video of the get-together taken by a documentary filmmaker included a portion in which someone could be heard saying aloud: ‘It’s inevitable. It’s going to happen. We just have to do it strong, fast, together.’
The revelation of the exchange came as the filmmaker who took the footage, Nick Quested, appeared as a witness at the trial in Federal District Court in Washington. Mr. Quested testified that he had followed Mr. Tarrio and the Proud Boys with his cameras from mid-December 2020 until shortly after Jan. 6 as part of a project exploring “divisions in America.”
Lawyers for Mr. Tarrio and his co-defendants — Joseph Biggs, Ethan Nordean, Zachary Rehl and Dominic Pezzola — immediately challenged the admissibility of the video clip, saying it would prejudice the jury against their clients.
The government ultimately decided not to play the video for the jury. But the description of it offered by prosecutors raised more questions about what had happened during the encounter and what importance it had to the violence that unfolded at the Capitol the next day.
It was not clear, for instance, who among those at the meeting had expressed the idea of acting together — or who was meant to do so. Nor was it at all certain what was “inevitable” and “going to happen.”
Prosecutors never asked Mr. Quested for his opinion about the exchange.
The video of the meeting was first made public in 2021 after Mr. Quested, who is British, released a portion of it to a British news channel….” Read more at New York Times
Judge Orders Trump and Lawyer to Pay Nearly $1 Million for Bogus Suit
In a scathing ruling, the judge said the suit against Hillary Clinton and dozens of the former president’s perceived political enemies was “brought in bad faith for an improper purpose.”
By Michael S. Schmidt and Maggie Haberman
Jan. 19, 2023
“In a scathing ruling, a federal judge in Florida on Thursday ordered Donald J. Trump and one of his lawyers together to pay nearly a million dollars in sanctions for filing a frivolous lawsuit against nearly three dozen of Mr. Trump’s perceived political enemies, including Hillary Clinton and the former F.B.I. director James B. Comey.
The ruling was a significant rebuke of Mr. Trump, who has rarely faced such consequences in his long history of using the courts as a weapon against business rivals and partners, as well as former employees and reporters.
And it was the latest setback for Mr. Trump as he faces a broad range of legal problems and criminal investigations. His lawyers are increasingly under scrutiny themselves for their actions in those cases, as well as divided in the advice they are offering him.
‘This case should never have been brought,’ U.S. District Judge Donald M. Middlebrooks wrote in a 46-page ruling. ‘Its inadequacy as a legal claim was evident from the start. No reasonable lawyer would have filed it. Intended for a political purpose, none of the counts of the amended complaint stated a cognizable legal claim.’…” Read more at New York Times
“No default | Senate Republican leader Mitch McConnell dismissed concerns that the US government will default on its obligations later this year when the Treasury Department risks running out of money, as hard-line conservatives demanding spending cuts gear up for a fight over raising the debt limit. The pending clash has stoked worries that the US faces a repeat of 2011, when an entrenched fight over raising the ceiling roiled financial markets and crimped an economic recovery.” [Bloomberg]
“US no-show | A prominent group was conspicuously absent from a meeting this week of global elites at Davos: Americans. US policy was central to discussions over everything at the Swiss ski town, from the climate-and-tax law President Joe Biden ratified in August to the globally important question over whether the US will default on its debt. Yet, neither he nor anyone from the White House attended.” [Bloomberg]
The head of the CIA held a meeting with Ukraine’s president.
“ we know: William Burns traveled to Kyiv last week to share U.S. intelligence with Volodymyr Zelensky about Russia’s next steps in Ukraine, The Post reported yesterday.
Why it’s important: The visit comes at a critical point in the war. Ukraine is getting ready for a major counteroffensive while Russia is attacking the eastern city of Bakhmut.” [Washington Post]
Defense leaders meet amid dissent over tanks for Ukraine
By LOLITA C. BALDOR and TARA COPP
“RAMSTEIN AIR BASE, Germany (AP) — Defense leaders gathered at Ramstein Air Base in Germany heard an impassioned plea for more aid Friday from Ukrainian President Volodymyr Zelenskyy as they struggled to resolve ongoing dissent over who will provide battle tanks and other military aid to his embattled country.
‘This is a crucial moment. Russia is regrouping, recruiting and trying to re-equip,’ U.S. Defense Secretary Lloyd Austin warned as the meeting opened.
Zelenskyy, speaking live via video link, told the gathering that ‘terror does not allow for discussion.’ He said ‘the war started by Russia does not allow delays.’
Calling it a decisive moment for Ukraine and a ‘decisive decade for the world,’ Austin said the group’s presence in Germany signaled their unity and commitment to continue supporting Ukraine.
‘We need to keep up our momentum and our resolve. We need to dig even deeper,’ Austin told the gathering of as many as 50 defense leaders who were attending in person and by video…..” Read more at AP News
“Legacy moment | After more than a million people took to the streets yesterday in protest at the French government’s plan to raise the retirement age to 64 from 62, it’s clear that Emmanuel Macron has a fight on his hands. As William Horobon reports, with neither the president nor labor unions leaving room for compromise, the stage is set for a prolonged struggle.” [Bloomberg]
“March on Lima | Protesters from rural areas of Peru traveled hundreds of miles in trucks and buses to downtown Lima yesterday to rally against the fragile government of President Dina Boluarte. As the nation’s political crisis entered its seventh week, police in riot gear fired tear gas near congress, while clashes between crowds and security forces continued outside the capital where more than 100 highway blockades remain.” [Bloomberg]
Demonstrators clash with riot police in Arequipa on Thursday. Photographer: Diego Ramos/AFP/Getty Images
The Impact of Jacinda Ardern’s Departure
“Following New Zealand Prime Minister Jacinda Ardern’s surprise announcement that she is resigning, much of the rest of the world responded by expressing admiration.
Anthony Albanese, prime minister of Australia, said Ardern had ‘shown the world how to lead with intellect and strength … She has demonstrated that empathy and insight are powerful leadership qualities,’ while U.S. ambassador to New Zealand, Tom Udall, said she was an “incredible world leader.’
Further afield, Canadian Prime Minister Justin Trudeau offered that Ardern had made an ‘immeasurable’ difference. European Parliament President Roberta Metsola said Ardern was ‘a friend to Europe who has been a trailblazing example—to young women in particular—showing how politics can be a force for positive change.’
Ardern announced that she was resigning because she didn’t have enough of herself left to give to the job. She also had her lowest poll numbers since 2017, and New Zealand is holding elections this fall.
That Ardern decided that it was better for the people of New Zealand, if she were to step aside is no small thing, Leslie Vinjamuri, the dean of the Queen Elizabeth II Academy for Leadership in International Affairs at Chatham House, wrote in an email to Foreign Policy. ‘Jacinda Ardern’s decision to resign is radical in an era where so many leaders are clinging to power. Contrast this with the former US President who went as far as to incite an insurrection in an attempt to block a peaceful and democratic transition of power.’
It also stands in stark contrast to Brazil, where former President Jair Bolsonaro attacked the integrity of the presidential election shortly before losing it (his supporters stormed government buildings on Jan. 8; the first charges against protesters were made earlier this week).
‘But even for normal leaders in normal times, Ardern’s announcement is decisive, bold, and unconventional. It could, perhaps should, inspire leaders everywhere to rethink the purpose of their power,’ Vinjamuri added. Ardern, she noted, is young enough to take a break and then go off to do whatever it is she’s most passionate about. ‘Maybe this will be an important example that shows that leading a country can in fact be a mid-career job and also not meant to be forever.’” [Foreign Policy]
Fla. rejects AP Black history class, saying it ‘lacks educational value’
“Florida will not recognize a newly created Advanced Placement African American studies course, with officials arguing that the lessons are illegal under state law and that the class ‘significantly lacks educational value.’
The decision is the latest volley in Gov. Ron DeSantis’s long-running war on what he considers to be overly ‘woke’ curriculum. The Republican governor is widely seen as positioning himself for a possible presidential run in 2024 and has made culture-war issues central to his political identity.
Florida’s legislature has enacted laws limiting how teachers can talk about subjects including race. A measure signed last spring, for instance, seeks to ensure that students are not made to feel guilty for racist acts carried out by others. ‘A person should not be instructed that he or she must feel guilt, anguish, or other forms of psychological distress for actions, in which he or she played no part,’ the law states.
It was not clear, though, exactly what in the new AP class runs afoul of those limitations.
The decision was communicated to the College Board, which runs the AP program, in a letter last week that was released to reporters Thursday.
‘In its current form, the College Board’s AP African American Studies course lacks educational value and is contrary to Florida law,’ Cassie Palelis, spokeswoman for the Florida Department of Education, said in a statement. ‘If the course comes into compliance and incorporates historically accurate content, the Department will reopen the discussion.’
She said that under Florida law, districts need state approval to offer a course to their students.
The AP African American studies course, an interdisciplinary class that draws from history, literature, political science, art and other subjects, is being piloted in about 60 public high schools across the country, the first new course offering from the College Board since 2014. It was unclear whether any Florida schools are included in the pilot program.
Revisions will be made based on early experience, and the course frameworks ‘often change significantly,’ the College Board said. Details of the class will be posted for interested parties to see in spring 2024. It will be available to all interested schools beginning in the 2024-2025 school year.
The College Board statement said that the class does not aim to push any point of view and depends on students immersing themselves in primary sources.
“The course is designed to encourage students to examine each theme from a variety of perspectives, without ideology, in line with the field’s tradition of debates,” the College Board said. “Students will encounter evidence, weigh competing viewpoints and come to their own conclusions. AP students are never required to agree with a particular opinion or adopt a particular ideology, but they are expected to analyze different perspectives.”
Florida state Sen. Shevrin Jones, a Democrat from the Miami area,noted on Twitter that Florida schools offer AP classes in European history as well as Japanese, German, Italian and Spanish language and culture. ‘It’s crazy how AP African-American studies made the chopping block in FL,’ he wrote.” [Washington Post]
Mental health
“The new 988 national mental health crisis line has seen a significant rise in call volume since its transition six months ago from the former 1-800-273-TALK number. More than two million calls, texts and chats to 988 have been routed to a response center, according to a CNN analysis, with the majority being answered in less than a minute. The new three-digit number is intended to be easy to remember, similar to how people can dial 911 for medical emergencies. ‘People are getting help more quickly,’ said Hannah Wesolowski, the chief advocacy officer for the National Alliance on Mental Illness. The 988 lifeline is just one tool in the ongoing effort to improve our nation's mental health for those who are feeling that they're approaching a crisis situation or are in crisis, she added.” [CNN]
January 20, 2023
By German Lopez
Good morning. A political fight is again putting the economy at risk.
The Treasury Department will use ‘extraordinary measures’ to allow the government to pay its bills.Kenny Holston/The New York Times
Routine crisis
“The U.S. government hit the legal limit on how much money it can borrow yesterday, prompting fears that the country soon may not be able to pay its bills.
The fight over the debt limit, which is now more than $31 trillion, can sound technical, but it could affect everyone. If the U.S. defaults on its debts, it could shatter financial markets. Your 401(k) and other investments could follow. As the flow of money dries up, businesses could be forced to close or downsize, taking jobs with them.
‘While no one really knows what would happen if you breach the debt limit, not many people would speculate that good stuff happens after that,’ Christopher Campbell, a former Treasury official, told my colleagues Jim Tankersley and Alan Rappeport. ‘It’s a cascade of how bad it gets.’
It’s a grim scenario — one the country has flirted with repeatedly since the 1990s.
The good news: The government has time to act. Analysts estimate that the Treasury Department can use so-called extraordinary measures to avoid a default until the summer, giving Congress the next several months to pass a bill increasing the debt limit.
The bad news: Democrats and Republicans are divided. House Republicans say they want to use a debt-limit increase — and the threat of default — as leverage to cut government spending. Top Democrats have likened the Republican stance to a hostage-taking situation. The sides can’t agree even on whether to negotiate.
Today’s newsletter will explain the debt limit and how it became a constant source of near-crisis in the U.S.
Self-imposed limits
There is a lot of confusion around the debt limit, largely because it’s so odd. But it’s relatively uncomplicated.
Congress regularly passes government spending bills. Since this legislation typically spends more money than it brings in, it adds to the debt.
In most countries, that would be the end of the spending process, and the government would simply take on more debt. After all, Congress is effectively saying that it’s willing to add to the debt when it passes spending bills that do just that. If Congress wanted to reduce spending, those bills seem like the most logical avenue to address such concerns.
But the U.S. has an extra step in the process: a congressionally set debt limit. This caps how much money the U.S. can borrow, which is, essentially, a ceiling on spending. (‘Debt ceiling’ is another term often used to refer to the congressionally set limit.) If the U.S. breaches the debt limit, it can no longer borrow money, and has to default on its existing debts. (Denmark is the only other country with a similar debt ceiling, although it raises its cap well in advance of nearing it.)
For most of the debt limit’s century-long existence, increases were largely uncontroversial.
But that has changed over the past three decades. Republicans, in particular, have used the passage of bills increasing the limit as leverage to try to force spending cuts on Democratic administrations. Democrats, too, have used it as a political tool: In 2006, Joe Biden, then a senator, joined his Democratic colleagues in opposing a debt ceiling increase to protest the cost of tax cuts and the Iraq war.
A crucial ingredient in this brinkmanship is divided government. Raising the debt ceiling is less of a problem when the same party holds power in both chambers of Congress and the White House. But when the government is divided, it makes the current scenario possible: A Republican-controlled House threatens to block a debt-limit increase that Democrats who control the Senate and White House would like to pass.
‘The fastest way to guarantee that we have debt rating problems is to keep spending money we don’t have, and keep piling up debt, and that’s what we’re doing,’ Representative Chip Roy, a Texas Republican, told CNN.
In short: If lawmakers have a problem with spending, the debt ceiling offers a way to protest. But the willingness of some Republicans to risk going into default poses potentially dire consequences.
A central role
Why does this matter? Because of the crucial role that U.S. debt plays in the global financial system.
When the U.S. borrows money, it issues U.S. Treasuries. (Heard of bonds that help pay for wars? Treasuries are like that.)
Because the U.S. always pays its debts, the financial system treats Treasuries as a very safe investment. Governments, companies and people around the world buy American bonds and other securities as a way to ensure that their money is safe. They are so widely purchased, in fact, that they support much of the financial system — giving investors a backstop to take on riskier opportunities.
But if the U.S. can no longer pay its debts and defaults, the reliability and trust that make Treasuries such a safe investment vanish. Money once considered secure is now seen as precarious. That realization could spawn the equivalent of a bank run, as people rush to get their money out of the financial system. The system would then buckle, crushing everyone’s investments, big and small.
It’s as bad as it sounds. Mark Zandi, chief economist at Moody’s Analytics, has said a U.S. debt default ‘would be financial Armageddon.’
So what can seem like a technical, political squabble can suddenly become very important to everyone. The TV show “The West Wing” captured this reality in 2005: “So this debt ceiling thing is routine, or the end of the world?” “Both.”” [New York Times]
“Elon Musk oversaw the creation of a 2016 video that exaggerated the abilities of Tesla’s driver-assistance system Autopilot, even dictating the opening text that claimed the company’s car drove itself, according to internal emails viewed by Bloomberg. Musk wrote to Tesla’s Autopilot team in October 2016 to emphasize the importance of a demonstration drive to promote the system, about which he made a big announcement a week later. In a call with reporters and blog post at the time, Tesla said all of its cars would ship with hardware necessary for full self-driving capability. Musk and Tesla went on to make claims about those capabilities—capabilities that have yet to materialize and claims that have triggered federal civil and criminal investigations.
Elon Musk Photographer: Joshua Lott/Getty Images
Meanwhile over in San Francisco federal court, Musk’s lawyers are arguing that the billionaire made a “split-second decision” back in 2018 to tweet that he was ‘considering’ taking Tesla private—a post including Musk’s now-infamous ‘funding secured’ claim—because he’d just read a news report that Saudi Arabia was investing heavily in his company. Tesla shareholder lawyers alleged the tweet was just one of several ‘lies’ that cost investors millions of dollars. A jury will decide who is telling the truth, and whether Musk defrauded investors of billions of dollars when they bet on a tweet that turned out to be false.” [Bloomberg] —David E. Rovella
Alec Baldwin
“Actor Alec Baldwin, who fatally shot a cinematographer on the set of the movie ‘Rust’ in 2021, and the film's armorer, Hannah Gutierrez Reed, will each be charged with two counts of involuntary manslaughter, prosecutors said Thursday. The family of Halyna Hutchins, who was the film's director of photography, thanked prosecutors for their decision. ‘It is a comfort to the family that, in New Mexico, no one is above the law,’ the family said in a statement. Baldwin has maintained he was not aware the gun he used during a rehearsal contained a live round and has said he did not pull the trigger. “ [CNN]
Google to lay off 12,000 workers, becoming the latest tech company to cut staff “Google announced Friday it was laying off 12,000 workers after rapid expansions during the COVID-19 pandemic have worn off. It’s the latest tech firm to announce large layoffs - earlier this week, Microsoft announced 10,000 job cuts, or nearly 5% of its workforce. Amazon is cutting 18,000 jobs and Facebook parent Meta is shedding 11,000 positions.” [USA Today]
Chatbot swamped
Screenshot from Open AI's ChatGPT
“OpenAI's chatbot has ignited such fascination that the tool is intermittently unavailable:
I waited 5+ minutes to get on yesterday morning, and it even took a few tries as I type this in the wee hours.
ChatGPT entertains you while you wait, generating status updates in the form of a radio ad ... a guided meditation ... an inspirational speech ... an acrostic poem ... a stand-up comedy routine ... rap ... a screenplay ... a sonnet ... in pirate-speak ("Arrr!") ... and in the style of Shakespeare.” [Axios]
There’s a backlash against new treatment guidelines for childhood obesity.
“What are they? The guidelines, released last week, urge therapy for children as young as 6, weight loss drugs for those as young as 12 and surgery for teens as young as 13.
Why? Experts said the old approach, with more focus on healthy lifestyle training, didn’t work.
The reaction: People are worried about the consequences of putting millions of children on drugs or under the knife.” [Washington Post]
“The period underwear brand Thinx settled a class-action lawsuit alleging that its products — long marketed as a safer, more sustainable approach to menstrual hygiene — contain potentially harmful "forever" chemicals.” [NPR]
Harry sells 3 million copies
Prince Harry talks with ABC "Good Morning America" co-host Michael Strahan in L.A. on Jan. 3. Photo: Richard Harbaugh/ABC via AP
“Prince Harry's "Spare" sold more than 3.2 million copies worldwide — half of those in the U.S. — after just one week of publication, making it one of the bestselling memoirs of all time, AP's Hillel Italie reports.
Why it matters: It's a number comparable to first-week sales for two other blockbusters — President Obama's "A Promised Land" and former first lady Michelle Obama's "Becoming," which has sold more than 17 million copies since coming out in 2018.
By the numbers: "Spare" sold 400,000 copies in the U.K. in all formats — hardback, e-book and audio — on its first day. First-week U.S. sales were 1.6 million copies.
The total of 3.2 million is for print, audio and digital editions in the major English-language markets — the U.S., U.K., Canada and Australia.
The book is out in 15 other languages. Ten more languages are expected.
Reality check: "Spare" may set records for nonfiction. But no book in memory approaches the sales pace for another Harry — the final Harry Potter novel, "Harry Potter and the Deathly Hallows," which in 2007 sold more than 10 million copies in its first 24 hours.” [Axios]
David Crosby, Folk-Rock Voice of the 1960s Whose Influence Spanned Decades, Dies at 81
He was an original member of the Byrds and a founder of Crosby, Stills & Nash. But he was almost as well known for his troubled personal life as for his music.
David Crosby in 1976. He was inducted twice into the Rock & Roll Hall of Fame, as a founding member of the Byrds and Crosby, Stills, Nash & Young.Credit...Gijsbert Hanekroot/Redferns, via Getty Images
By Jim Farber
Jan. 19, 2023
“David Crosby, the outspoken and often troubled singer, songwriter and guitarist who helped create two of the most influential and beloved American bands of the classic-rock era of the 1960s and ’70s, the Byrds and Crosby, Stills, Nash & Young, has died. He was 81…..” Read more at New York Times