Inequality

Return of the State-Owned Enterprise

Image result for state owned enterprises

A new investor to Japan once asked CM how to categorise corporate behaviour in the land of the rising sun. CM replied, “Japan is not capitalism with warts, but socialism with beauty spots.

Latest reports confirm the Bank of Japan (BoJ) has now become a top 10 shareholder in almost 50% of listed stocks. In a sense, we have a trend which threatens to turn Japan’s largest businesses into quasi-state-owned enterprises (SoE) by the back door. The BoJ now owns $250bn of listed Japanese equities. It is the top shareholder in household Japanese brands such as Omron, Nidec and Fanuc. At current investment rates, the BoJ is set to own $400bn worth of the market by 2020-end.

The original reason for this move was to boost the ETF market and hope that Mrs Watanabe would pocket her winnings and splurge them at Mitsukoshi Department Store to increase consumption. Sadly all she has done is stuff it under the futon.

Although the government has been very public about the drive for good corporate governance, a stewardship code that drives to unwind cross-shareholdings, improve liquidity and lift returns, sadly the BoJ essentially reverses free-float and confounds the ability of companies to be attractive investments. What will happen if one day the BoJ announces it needs to pare its balance sheet back or that its holdings become too noticeable? These stocks will crater and Mrs Watanabe will become even more gun shy.

We shouldn’t forget that behind the walls of the BoJ, there is discussion to buy all $10 trillion of outstanding Japanese Government Bonds (JGBs) and convert them into zero-coupon perpetual bonds with a mild administration fee to legitimise the asset. Global markets won’t take nicely to wiping out 2 years worth of GDP with a printing press. Such a reckless experiment has yet to hit the Japanese Diet for discussion because such a move will require legislation to approve it. If it happens, the inflation the BoJ has now given up on will turn into a tsunami.

Ohio Democrat suggests heartbeat bill exclude African American women

Ohio passed the “Heartbeat Bill” last week to make it illegal to abort a fetus once a heartbeat is detected. State Rep Janine Boyd (D) proposed an amendment that African American women should be exempted from the legislation. It was defeated.

Her argument?

Black slaves were once treated like cattle and put out to stud in order to create generations of more slaves…Our country is not far enough beyond our history to legislate as if it is.”

Note that 70% of Planned Parenthood abortion clinics are located in low income areas. While African Americans are 13% of the population, 37% of pregnancies are terminated. In NY, more black babies are aborted than born.

Who knew that abortion should be race based?

Peter Ridd wins unfair dismissal action

Congratulations to Prof Peter Ridd, who has won his court case for unfair dismissal. Ridd, who was unceremoniously dumped by James Cook University for challenging the orthodoxy about the deterioration of the Great Barrier Reef, exposed the Marxism rife within our government funded universities.

The whole point of university is to encourage new thought and fresh ideas. Not sack those who disagree. So much for mounting a credible argument to debunk Ridd’s assertions. If anything he has proved the faculty couldn’t disprove him with facts.

He has won on all counts with respect to unfair dismissal. Will the Dean move to sack/sanction/demote those who encouraged the sacking?

Populist Finns Party set to more than double number of seats

The nationalist, anti-immigrant and eurosceptic Finns Party is set to grow seats from 17 in 2015 to 38 in today’s election, or represent around 17% of parliament. The party election video is an interesting one to say the least.

Whatever one’s personal views on populism, in Europe it is the fastest growing segment in politics. With 118m Europeans below the poverty line, 50% higher than 2007 is it any wonder the citizens of many member states have had enough of EU control. Finland has only 15.7% (up from 12.6% in 2007) poverty as a percentage vs 22.4% (16% in 2007) in the EU-28 but that is enough to trigger the ice cold welfare state to revolt.

Mrs May, do you understand more EU members don’t want to be held captive by Brussels?

The irony in “They’re all yours, Sanctuary Cities”

Will Trump’s tactics to expose the hypocrisy of sanctuary cities work? Democrats remain stubborn over funding border security. In his view, if sanctuary cities are all publicly open arms about accepting illegals then they should be happy to welcome busloads of them. The great irony of these virtue-signalling Democrat controlled cities is that they’re upset that this reality may dawn, although publicly stating they’ll be welcome. The greater irony is that a growing number of illegal immigrants are choosing to move OUT of sanctuary cities. In 2007, 7.7mn (63.1%) lived in the 20 largest metros to 6.5mn (60.7%) in 2016 according to Pew. During that time 1.5m illegal immigrants were deported (12.2mn ->10.7mn).

Despite one’s views of illegal immigration and the use of people as political pawns, ICE has just released its 2018 statistics. The numbers are staggering.

ICE’s 2018 annual report notes the following situation at the border:

U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) has continued to use resources as effectively and efficiently as possible to enforce the nation’s immigration laws.

In FY2018, ERO arrested 158,581 aliens, 90% of whom had criminal convictions (66%), pending criminal charges (21%), or previously issued final orders (3%). The overall arrest figure represents an 11% increase over FY2017.

  • 2015: 101,800
  • 2016: 110,104
  • 2017: 143,470
  • 2018: 158,581

The number of individuals detained by ERO is driven by enforcement actions taken by ICE and apprehensions made by U.S. Customs and Border Protection (CBP). In FY2018, 396,448 people were initially booked into an ICE detention facility, an increase of 22.5% over FY2017.  Book-ins to detention resulting from CBP arrests increased by 32% over the previous year, illustrating a surge in illegal border crossings.

  • 2015: 307,342
  • 2016: 352,882
  • 2017: 323,591
  • 2018: 396,448

In FY2018, ERO removed 256,086 illegal aliens, reflecting an increase of 13% over FY2017. The majority of removals (57%) were convicted criminals. Additionally, 5,914 of the removed illegal aliens were classified as either known or suspected gang members or terrorists, which is a 9% increase over FY2017.

  • 2015: 235,413
  • 2016: 240,255
  • 2017: 226,119
  • 2018: 256,086

Here are some of the reasons for arrest – both criminal convictions and charges – for 2017 (2018):

  • Driving under the influence : 80,547 (80,730)
  • Dangerous drugs: 76,503 (76,585)
  • Immigration violation:  62,517 (63,166)
  • Assault: 48,454 (50,753)
  • Larceny: 20,356 (20,340)
  • Burglary: 12,836 (12,663)
  • Fraud: 12,398 (12,862)
  • Illegal weapon possession: 11,173 (11,766)
  • Sex offences: 6,664 (6,888)
  • Stolen Vehicles: 6,174 (6,261)
  • Forgery: 5,210 (5,158)
  • Homicide: 1,886 (2,028)
  • Kidnapping: 2,027 (2,085)
  • Prostitution racketeering: 1,572 (1,739)

Since the initial surge at the Southwest border (SWB) in FY2014, there has been a significant increase in the arrival of both family units (FMUAs) and unaccompanied alien children (UACs). In FY2018, approximately 50,000 UACs and 107,000 aliens processed as FMUAs were apprehended at the SWB by the U.S. Border Patrol (USBP). These numbers represent a marked increase from FY2017 when approximately 41,000 UACs and 75,000 FMUA were apprehended by USBP.

While USBP routinely turns FMUA apprehensions over to ICE for removal proceedings, ICE is severely limited by various laws and judicial actions from detaining family units through the completion of removal proceedings. For UAC apprehensions, DHS is responsible for the transfer of custody to the Department of Health and Human Services (HHS) within 72 hours, absent exceptional circumstances. HHS is similarly limited in their ability to detain UACs through the pendency of their removal proceedings. When these UACs are released by HHS or FMUA are released from DHS custody, they are placed onto the non-detained docket, which currently has more than 2,641,589 cases and results in decisions not being rendered for many years. Further, even when removal orders are issued, very few aliens from the non-detained docket comply with these orders and instead join an ever-growing list of 565,892 fugitive aliens.”

Switching to compassionate grounds, who wants to see screaming kids? No-one. Locked in cages? Even less. Separated? Well, there is a good reason for that. When even the likes of left-leaning HuffPo admitted in December 2014 that 80% of women and girls are sexually assaulted while trying to make it across the border there is a good reason to question the proof of identity of the supposed parents. Even if 90% of parent/children pairs are legit, what of the 10% that aren’t? Do ICE risk it? Australia had an experience of a mother from Nepal (a democracy not at war) who deliberately poured boiling water on her infant to expedite processing on the mainland. Are these the values of people we should provide refuge to? We should not forget that many people make the journey knowing ALL the risks that confront them yet still attempt it despite the warnings.

To emphasize the danger of lax screening,  multiple kids were found dead after being abandoned once across the border as their usefulness as a golden ticket on compassionate grounds was expended. If that isn’t some of the worst forms of child abuse then what is? Moreover, these people are hardly the type that decent Americans would want to embrace with open arms!

In Jan 2016 WaPo noted, “The Office of Refugee Resettlement, an agency of the Department of Health and Human Services, failed to do proper background checks of adults who claimed the children…several Guatemalan teens were found in a dilapidated trailer park near Marion, Ohio, where they were being held captive in squalid conditions by traffickers and forced to work“. So slave labour to repay human traffickers? Let’s encourage more to attempt the crossing?

Then ICE has the trouble of finding the parents/guardians (sponsors) already living (often) illegally to collect their unaccompanied children at pre-arranged court hearings. The media went into a frenzy saying that ICE had lost the records. The truth came out in Feb 2016 that,

“The head of ICE’s removal operations, Thomas Homan, told members of the Senate Judiciary Committee that 7,643 immigrants who arrived as children were sent home between the 2012 and 2015 budget years…More than 171,000 children, mostly from Honduras, El Salvador and Guatemala, were arrested at the border during that same time…The number of children caught crossing the border illegally spiked in 2014 [see impacts in NY Times graphic] and the Obama administration promised that those who were not eligible for protection in the United States would be swiftly sent home… And with an immigration court backlog of more than 474,000 pending cases, some cases can take years to move through the court system…

…about 40% of immigrants are no shows at court…Finding immigrant children with outstanding deportation orders is also complicated by the fact that they often are no longer at the addresses provided to the government.”We are out looking,” Homan said. “But they are hard to find. A lot of these folks who don’t show up in court, we don’t know where they’re at.”

The pictures of kids in concentration camp style cages were from 2014. Yet don’t let that get put in the way of a narrative to show the nationalist tendencies of the current administration.

While we can express outrage at the treatment of illegal immigrants at the border, the tougher laws have started to resonate with Ana Garcia Carias, wife of Honduran President Juan Orlando Hernandez, who said, Stay in the country and let’s look for solutions to support you. She visited the border and said that she didn’t recommend her citizens go to the US undocumented.

In summary, Americans want their borders safe. Rasmussen Reports notes that most citizens do not want to abolish ICE. The polling firm noted,

only 25% of Likely U.S. Voters favour getting rid of ICE whose duties include border control. Fifty-five percent (55%) are opposed…Sixty-nine percent (69%) of Republicans and 53% of voters not affiliated with either major political party oppose getting rid of ICE. Democrats agree by a narrower 44% to 36% margin.”

AS CM always says, if people don’t like the laws, then move to change them. Trump’s tactics are unorthodox but will expose the hypocrisy of those that push forward the idea of protecting illegal immigrants.

And so the lunatics try to legislate

Well done the 235 Democrats and 2 left wing Republicans looking to sponsor a bill that will make it law to allow transgender students to be able to play on the team of their chosen gender. The bill is being called the Equality Act. Yes, the identity politics of the left want to defy basic biology. This is not to deny their rights to be regarded as their chosen identity but to stop this nonsense of men playing women’s sports.

The US Army conducted a study on the physical differences between men and women.

It found:

1) women had 60-70% of the isometric force of men.

2) women had 60% of the weight lifting power of men

3) women had 78% of the power/body weight of men

4) blood pumps through a woman’s heart at 30% less than a man

5) women have 6% fewer red blood cells and 10-14% less hemoglobin than men meaning recovery rates are slower because males have more oxygen in the system.

Whatever one thinks of the Equality Act, Usain Bolt or Michael Phelps could have easily identified as a woman and cleaned up gold in all the same Olympic events they swept in the men’s equivalents. Would the world have been happy with that? Heavyweight boxing perhaps?

While we are littered with examples of men identifying as women competing in women’s sports there are next to no examples of the reverse. If the Democrats did their homework they’d realize there are numerous women who identify as women compete against men. Some winning without distorting biological reality.

21yo Spanish rider Ana Carrasco became the first woman to win a world championship in motorcycle racing. She won the World Supersport 300s crown. If there was ever a better display of rising to a challenge in a sport dominated by males, this was it!

CM wrote in January about her first ever race win last year on equal machines with the boys. Shows that grit, determination and skill can make the difference without this recent desire to throw handicaps to even it out. Great job indeed to win on identical bikes. CM remembers seeing her in 2015 on the RBA Racing Moto3 bike in Motegi. Impressive.

We shouldn’t forget the performance of Michele Mouton who finished runner up in the 1982 World Rally Championship against an all male field with zero free kicks? She won four races in the season. Call it raw talent. She didn’t require complex formulas, spreadsheets and laws to give her a handicap. She won on her own merits.

Isn’t that the thrill of competition? To compete on equal terms even if the underdog?

Spare a thought for the poor girls who train hard that may never achieve what they were rightfully owed because of gender based identity politics supported by government.

Ted Lieu smears Owens as a supporter of Hitler but refuses right of reply

So true to form, Democrat House Rep from California Ted Lieu, tried to smear Candace Owens as a supporter of Hitler with an edited recording which took all context away from the question she was being asked of her.

Such was the circus, Lieu provided Owens no right of reply. It took another member of Congress to yield their time so she could answer.

More embarrassing was Chairman Jerry Nadler (D) incorrectly censuring her for calling Lieu “stupid” when in fact she questioned whether Rep Lieu “thought black people were stupid and would not pursue the full clip in its entirety.” She quipped it was OK for them to call her “despicable

So desperate are the Democrats looking to paint narratives of division that they only need to stare in the mirror to see where it is coming from. How could Lieu make the claim that he knew nothing about Owens yet managed to have an edited recording?

Even if his team supplied it, it would have made sense for the Rep to do his homework on the subject matter save him getting slapped down by the eloquence of Owens. She was right to call his refusal to allow a reply as telling as to she was to criticize him for being “unbelievably dishonest“.

Maybe Lieu might reflect on hate crime as reported by the FBI in his own community.

Anti-Asian hate crime has fallen from a peak of 527 in 1996 to 131 in 2017. In 2017, Asians were 0.00069% likely to suffer a hate crime relative to the Asian American population.