Monthly Archives: May 2017

Outside Donald Trump’s offices, pigs will fly – The indy100 (satire)

Posted: May 8, 2017 at 12:29 am

Picture: Facebook / Flying Pigs on Parade

Sometimes it's had to block out hearing or seeing Donald Trump's name, with him being the president of the US and all.

But how about with gold helium balloon pigs? Four of them will soon be floating outside Trumps tower in Chicago, right over that smug logo.

Flying Pigs on Parade calls itself a visual representation of animal farm, to provide visual relief to the citizens of Chicago by interrupting the view of the ostentatious Trump Tower Chicago sign.

The website states:

The project is a bold visual response to the loud, illogical and frequently hateful expressions that engulfed the elections and now define the activities of U.S. leadership. We see this folly as a gesture in support of those of more rational, optimistic and inclusive minds. We are proud and rational Americans.

The scheme is currently raising money, because the cost of the instillation, which will only be up for one day, will be around $100,000. No one said art was cheap.

A 30-foot inflatable pig was held above Battersea Power Station in a recreation of Pink Floyd's 'Animals' album cover on September 26, 2011 in London, England. The original balloon 'Algie' went up in 1977 for the album cover, but broke free on the second day of the photo shoot. (Picture: Oli Scarff/Getty Images)

Many believed Donald Trump had little chance from winning the US presidency.

The expression "When pigs fly" comes to mind...

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Outside Donald Trump's offices, pigs will fly - The indy100 (satire)

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Martha Stewart Appears to Give Donald Trump the Middle Finger – Vanity Fair

Posted: at 12:29 am

Its not every day that, while taking a photo of two celebrities, another sneaks their way into it. While attending Andres Serranos show at Frieze New York, a guest was about to snap a photo of portraits of Donald Trump and Snoop Dogg hanging side-by-side when who should show up but Martha Stewart, armed with the bird in one hand and a peace sign in the other.

The photo, first spotted by The Cut, quickly went viral, with more than 3,000 likes on the original photo at time of writing.

Neither Stewart nor Snoop is a big fan of Trump, the former voicing her support for Hillary Clinton throughout last years campaign, and the latter having just released a music video featuring himself shooting a clown dressed as Trump.

Stewart shared a more safe-for-work version of the photo on her own Instagram accountas well as an announcement about her show with Snoop on VH1:

So, thats twenty more episodes of Martha and Snoops Potluck Dinner Party, plus the two will be appearing at Sundays 2017 MTV Movie & TV Awards. And what better way to advertise it than by crashing an art show and flipping the bird at the president? If Snoops not around, at least Stewart had a convenient portrait to stand in for him.

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This is the No. 1 reason Americans file for bankruptcy – USA TODAY

Posted: at 12:28 am

Maurie Backman, The Motley Fool 4:02 p.m. ET May 5, 2017

When we think about consumer debt, we tend to point a finger at folks for whom shopping sprees are a way of life. But the real reason a large number of Americans wind up in financial trouble has nothing to do with self-indulgence or an inability to resist temptation. Rather, it's a matter of medical debt.

According to the Kaiser Family Foundation (KFF), more than a quarter of U.S. adults struggle to pay their medical bills. This includes folks who have insurance, whether independently or through an employer. In fact, medical debt is the No. 1 source of personal bankruptcy filings in the U.S., and in 2014, an estimated 40% of Americans racked up debt resulting from a medical issue.

Now it's not shocking to learn that countless Americans struggle with medical debt, but whatissurprising is the extent to which insured individuals have trouble keeping up. Last year, TheNew York Timesreported that 20% of Americans under 65 with health insurance had trouble paying their medical bills over the past year. Of those, 63% claim to have used up all or most of their savings to tackle their healthcare expenses, while 42% took on an extra job to cover their costs.

Unfortunately, having health insurance in no way guarantees that you won't fall victim to medical debt. But if you take steps to build an emergency fund, you'll be better protected in the face of an unanticipated bill.

A big reason so many people wind up in debt over medical issues is that they don't have adequate savings to cover an unexpected cost. According to a recent GoBankingRates survey, 69% of Americans have less than $1,000 in savings, while 34% have no money in the bank whatsoever. But there's a reason we're all advised to sock away enough savings to cover three to six months' worth of living expenses. Even those of us with insurance are vulnerable in the face of a costly injury or illness, and without ample savings, collectively, we're taking a pretty big risk.

That said, there are things you can do to ramp up your savings, which can help you avoid medical debt that might ultimately result in bankruptcy. For starters, create a budget so you can accurately track your spending and identify ways to cut corners. Next, reduce your spending for all categories that aren't essential living expenses. These include leisure, restaurant meals, and even cable (you can probably downgrade your current package and still enjoy your share of TV).

If that doesn't do the trick, then you'll need to consider more significant changes, such as downsizing your living space, unloading a vehicle, or working a side job to generate extra income. The key is to save up enough money so you're protected at all times.

Now you may be thinking: "So what if I end up filing for bankruptcy as a result of medical debt?" But here are some things you ought to know about bankruptcy. First, it stays on your record for 10 years, during which time you may have difficulty renting an apartment, getting an auto loan, or even finding a job. That's a long time to be saddled with a glaring financial disadvantage.

Second, one of the most ironic things about bankruptcy is that it costs money -- a lot of money -- to file. Because the bankruptcy code is complex, you'll need to hire a lawyer, and any filing fees you incur will be passed directly to you.

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Furthermore, there's no obvious distinction between filing for bankruptcy as a result of medical debt versus reckless spending. A bankruptcy filing on your record is a black mark regardless of why it happened, and when you apply for a new line of credit, your lender won't necessarily care or know the difference.

Tempting as it may be to look at bankruptcy as a fallback option when your medical expenses get out of control, a better bet is to work on building your savings and hope it suffices in helping you cover your costs. Another option? Examine your health insurance plan more closely and see if it makes sense to pay a higher premium for more comprehensive coverage. In some cases, you'll come out way ahead by opting for a costlier plan that offers better benefits and lower copayments and deductibles.

Finally, don't neglect health issues in their early stages, because that's when they're typically the easiest and least expensive to treat. The longer you wait to address a medical problem, the greater your risk of having it escalate into a series of bills you just can't keep up with.

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This is the No. 1 reason Americans file for bankruptcy - USA TODAY

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Puerto Rico’s bankruptcy is the next step in its slow dance of default – The Hill (blog)

Posted: at 12:28 am

Last Wednesday, the Financial Oversight and Management Board for Puerto Rico, created by Congress last year, formally requested the appointment of a federal judge to oversee bankruptcy proceedings for the indebted U.S. territory. The proceedings are authorized under Title III of the Puerto Rico Oversight, Management and Economic Stability Act of 2016 (PROMESA).

The well-choreographed move fits into the larger sequence of events intended in PROMESA. A 10-month stay on litigation against the government of Puerto Rico expired last Monday, precipitating a rush to the courthouse by creditors. But with initiation of the Title III bankruptcy proceedings, the stay goes back into place, putting the lawsuits on ice for another 120 days.

His encouragement was unnecessary. Puerto Rico Gov. Ricardo Rossell had sent a request to initiate Title III a few minutes before Weiss took the stage. By the end of the day, the Oversight Board had approved and filed the governors request.

The 10-month stay improved Puerto Ricos position at the bargaining table. It froze debt payments, so Puerto Rico could default on $2 billion since PROMESA was signed. The stay also allowed Puerto Rican voters time to choose a new governor to guide them through the process and to preemptively initiate reforms. Finally, the governor and the board agreed on a fiscal plan under cover of the stay.

The governors first draft of a fiscal plan called for repaying $1.2 billion of the approximately $3 billion per year owed to creditors. The Oversight Board rejected that plan as too optimistic, and they approved one that budgets $800 million a year in repayments. The plan also calls for a 10 percent cut to pension outlays by 2020.

PROMESA stipulates that the governors fiscal plan will guide bankruptcy proceedings. If Title III survives court challenges brought by bond insurers, then the size of the creditors pie is fixed, at least for the next several years, and the judges job is to dole out the scraps.

One section of PROMESA remains little used. Title VI provided for mostly-voluntary agreements between creditors and the government. But, as Rachel Greszler and I wrote in 2016, collective action clauses are little comfort to a creditor facing an oversight board with a fiscal plan of its own and the power to enforce it with the normal legal process sidelined.

Among the creditors, the big winners are those who lent to the Puerto Rico Electric Power Authority (PREPA), the islands public electric utility. PREPA was the canary in the coal mine, and its creditors organized themselves early and had the structure of a voluntary debt restructuring reached before PROMESA was drafted. Negotiations continued through April, resulting in an agreement (pending Oversight Board approval) that would give creditors 85 cents on the dollar.

The contrast between the PREPA deal which was largely worked out under existing law prior to PROMESA and the likely fate of creditors of other public utilities is instructive. Existing law provided tough but fair discipline for publicly owned corporations that did not pay their debts. They could go into receivership or even be privatized. In the case of the electric utility, reform means cutting off freeloading customers, stopping paychecks to absentee workers, and developing public-private partnerships for power generation.

In the Title III process, however, the other indebted utilities will get to default on more of their debt, and reform will be filtered through the political process. That serves the people of Puerto Rico poorly. Politics has meant patronage for the few and poor service for the many. While PROMESA averted lawsuits, it also averted some badly-needed reforms. As Gov. Rossell himself said at The Heritage Foundation last week, If you can find it in the Yellow Pages, you need to ask yourself if the government should be doing it.

Under PROMESA, the governor will be fighting an uphill battle against entrenched political interests wherever he tries to shrink the bureaucracy or privatize a service that belongs in the Yellow Pages. Without PROMESA, creditors would have forced the issue.

Puerto Ricos slow dance of default may continue for years as creditors battle the Oversight Board in local and federal courts. Bond markets will watch that fight with interest. Others, however, are already turning to the key player: Gov. Rossell.

He can give Puerto Rico a chance of success by building on early reforms to labor markets and construction permitting and by delivering on his campaign promise to shrink the governments 131 agencies down to a svelte 40. Introducing him last week, I said he had the hardest job in politics. It is not about to get easier.

Salim Furth is a research fellow specializing in macroeconomics at The Heritage Foundations Center for Data Analysis.

The views expressed by contributors are their own and are not the views of The Hill.

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Caesars: Poised For A Takeoff Or A Rocky Post-Bankruptcy Landing This Summer? – Seeking Alpha

Posted: at 12:28 am

"If it is reorganization, a new deal and a change you are seeing, it is Hobson's Choice. I am sorry for you but it is really vote for me or not vote at all"

- Woodrow Wilson

Let's face it: were you Caesars Entertainment's (NASDAQ: CZR) newly minted CEO Mark Frissora, preparing for a 1Q17 earnings call conference, the only logical footwear you could reasonably be expected to wear to the party would be tap-dancing shoes. Leading the once iconic casino company focused on the day to day business as it struggles through a bankruptcy war with its bondholders, you'd be left with little other choice. Lawyers gleefully logging mega-hours through the maelstrom understandably warned management to stay muzzled about the future. Just run the place. Make happy talk, cut costs, don't you dare breathe a word about a Caesars that could emerge on the other side of bankruptcy late this summer two and a half years after the original filing.

The idea is, get the doors open every day, staff the casinos right, make sure the buffet line doesn't get too long, get the dated rooms upgraded, reinforce a culture of strong customer service when employees are worried about their jobs. So, if shareholders expected anything but a nice buck and wing out of management during the earnings call, they were bound to be disappointed.

But that is exactly what Frissora and company have done. Even within the legal strictures of what is prudent to talk about post bondholder deal, the earnings release at best was thin gruel.

CZR is still a Tinkertoy construction until the exit

It is to be remembered that CZR is a jerry-built cluster of subsidiaries cobbled together pre-bankruptcy by the company, it asserted, to protect its asset base. In the company's view, it was perfectly legal. In a court appointed investigator's opinion, it was at best borderline, if not a demonstrably, fishy construct. But many parts of that Three-Card-Monte game of asset shuffles remains in place today and will remain until the company finally emerges out of bankruptcy into two projected entities: An OpCo that will operate all the company's casino assets, and a PropCo REIT that will own all its realty controlled by bondholders.

Now that the bondholders have finally made nice with the company and its private equity owners Apollo Global and TPG, investors need to begin attempting to envision a post-bankruptcy Caesars that can be valued beyond the framework of the OpCo/PropCo split already public.

Let's begin with a capsule glance at the key elements of the May 2nd 1Q17 earnings release:

Net revenues: $2 billion, up 1% YoY.

Adjusted EBITDA: $551 million, up 1% YoY.

Adjusted EBITDA margins: 26.9%, up 64 bps YoY.

The centerpiece of the glad Q1 tidings really has a single high note:

There was strong cash ADR growth on the hotel side due to a price raise and what management ascribed to a room renovation program that had made company properties more competitive and thus able to gain pricing power:

ADR GROWTH

1Q16: $143

1Q17: $159, up YoY 11%.

OCCUPANCY:

1Q16: 83.81%

1Q17: 84.8%, up 1% YoY. This is fine, but it fundamentally means very little in a single quarter. Yet it is fair to state that management drawing a straight line between improved ADR and occupancy and its large scale renovation program is valid. Management expects that by the end of 2017 more than 50% of the CZR Las Vegas portfolio will have been upgraded since 2014. Nationally, throughout the current Caesars system 7,000 rooms will be renovated.

Market share of Las Vegas gaming volume, however, was flat:

1Q16: 25%

1Q17: 25.2%

The quarter was adversely bruised by a low hold percentage, which shaved an estimated $15 to $20 million from revenue, well above the expected normalized number of $10 million. Unless your casino floor is populated by turtle-like dealers, too much dated slot product, etc., hold percentage always lies in the realm of the gaming gods. Nobody's fault.

This is good news, but as with all reports of quarterly ADR up or down in the casino industry, they aren't indicative of long-term trends. There are so many factors that can impact ADR over a short time frame that the number, while positive, really doesn't lend much insight into the state of the nation, as it were.

INNOVATIONS: Skill-based games are under test at Planet Hollywood, Harrah's Tahoe and Harrah's Southern California. Results from our sources: Far too early to call, nothing great, nothing terrible so far. A panacea? Probably not. Will it take time to make a sound judgment call? Yes, it will.

FRONT DESK KIOSKS: Caesars is testing express check in and check out kiosks in selected properties and early results are encouraging. Waiting times have been reduced 40%. Expect this to expand.

VEGAS SUPPLY OUTLOOK: As of now, it would appear that no major additions to room supply fall within the short or intermediate term to challenge the two mega-multi-property operators, CZR and MGM (NYSE:MGM). The Fontainebleau project, launched in 2007, is still a sitting structural eyesore. Carl Icahn has bought the property in bankruptcy for $150 million against its projected $2 billion cost. He's agreed to cloak the building with a cover to reduce the eyesore factor. Alon Las Vegas has made zero progress. And even the most logical potential entrant of all, Genting's Resorts World Asia-themed property - announced in 2015 - has since moved little beyond shoveling dirt from one pile to another. Steve Wynn has moved his Paradise Park outdoor lagoon project to a master plan of sequenced opening, going ahead with his waterside attractions and amenities but holding back on the originally planned 1,000 room addition.

All this confirms our view that both occupancy and ADRs in Las Vegas will have a firm support base against projected visitation of between 43 and 45 million to the 2020 out years. This lends support to the projection by CZR that at least its Las Vegas portfolio room valuations are fairly solid.

But other than that core metric, there was very little in the earnings call signal to present a sensible entry point on the stock at its current price. Against this we have a one-year analyst price target at $13 against a current market cap of $1.6 billion. The most news about the Q1 CZR earnings release was that there was essentially no news.

Yet the stock has moved.

Nearly six months ago the shares were trading at $7.15 and now, at this writing, it's $11.15 - up 55%. Its 52-week range is $5.39 to $11.83, up 55%.

Yet we have this continuing flow of earnings reports that fundamentally tell us very little other than that Frissora and & Co. are doing their best to slash costs, fine, renovate rooms, fine, and keep employees smiling nice. All that is for the good, all that is under orders from the phalanxes of suspendered lawyers for management to just tend to its knitting.

So, why has the stock moved, where is it going and should you be a buyer, seller or holder now?

The company maintains a 65% institutional ownership profile spread among 113 holders. Of these, 68 transactions indicated increases in holdings, 39 decreased and 24 stood still. Topping the list is private equity holder Apollo Global with 26.4 million shares. This would appear to support the idea that despite the blistering Chapter 11 wars with the juniors, most institutional holders remain believers. This could be out of the conviction that the asset base will emerge shorn of over $10 billion in debt and will have to be valued up by the market.

Or, conversely, there is some opinion that the bondholders, who will essentially own control of the company post-bankruptcy, will be hanging up the for-sale sign on many of the company's laggards, particularly in the many soft-revenue regions in which they operate.

This school of thought posits the following, as expressed to me by a bond trader friend who has in the past owned lots of casino debt. He first asked me, as an industry person, to look over the portfolio in terms of existing properties, the market trends in which they operate and the prospects for those properties going forward.

Right now, CZR owns 34 properties nationally, manages another 7 and has an additional 8 properties scattered throughout the UK and Egypt. "Assume they all wind up in the PropCo REIT. How many are viable in your view?" he asked. "Look at it like a gaming guy, not a realty evaluator."

My answer: I think we will see a case for serious consideration by the new ownership group to offload whatever they can. I don't see a fire sale, but a concentrated effort to lighten up the portfolio. The circumstances that supported the idea of a massive chain of US regional casinos popping up in every nook and cranny where gaming was legal is an idea whose time has come and gone.

And the guy who built on that idea, former CEO Gary Loveman, is gone as well. He saw Caesars as a massive system linked by the highly successful Total Rewards program database that literally would chain customers to visit a Caesars property wherever they lived or traveled because they could generate points. That worked for a while, but it couldn't survive the undertow of recession and increasing competition from smart operators.

My take: I see 10 Nevada properties as solid, another 5 strongly situated regionally and the rest varying from marginal to questionable in the longer term. The industry is headed toward regional consolidation either through the REIT structure or mergers. The timing is good for Caesars to do deals with strong regional operators with the balance sheets and operating smarts to acquire many of its properties. And I sense that is, without a doubt, an option the new bondholder/ownership group will need to entertain.

By unloading properties that will either fall into its REIT or remain owned and operated at sensible prices over time, CZR will be enabled to strengthen its balance sheet with both cash as well as the debt relief already in hand. It will be so strengthened that it will be in position to compete for a place in Asia, where it so badly missed the boat in the early 2000s.

My call

I think the CZR that was pre-bankruptcy has no reason to be in the gaming sector as it exists today. The economic collapse of 2007/8 was beyond its control, and the idea of gobbling up companies and properties willy-nilly just to feed the database was fine for a while, but the latter went wildly out of control.

A new post-bankruptcy CZR - bringing to the table one of the world's great gaming names, as well as a clutch of really good properties shrunken to fit its financial capacities and of a size lending itself to better management controls of the type that CEO Frissora is attempting to ignite now - could be a stock worth owning at the current entry point. But since nobody can read in the tolerance level of a bondholder, nor now know what the new management or its people will want to do, we have to conclude that somewhere between its current price and perhaps $15, CZR could be a buy for investors undaunted by a guessing game until summer.

If management seems to be clinging to the idea of a post-bankruptcy Caesars that is merely a pre-bankruptcy Caesars shorn of $10 billion in debt with no prospects of portfolio reduction in many of the weaker markets it now operates in, it's time to sell.

Beyond that it's either a hold, or given the other opportunities in the sector with strong regionals and global leaders poised for the big Japan moves later this year, it's a sell if you can take some money off the table now.

Author's note: My own gaming portfolio is held in a blind trust for my children and grandchildren so as to avoid any potential conflicts of interest with casino consulting clients, past, present or future.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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How to ignite growth and return South Africa to investment grade … – Thought Leader

Posted: at 12:28 am

The theme of the WEFAfrica 2017, Achieving inclusive growth through responsive and responsible leadership, could have been an appropriate and founding moral code and political philosophy for the incoming democratic government at the beginning of the transition period in 1994 because it captures, in a simple but profound manner, the essence of what needed to be done to reverse the racist practices of the colonialists and the apartheid regime that had existed for centuries.

The liberation struggle was premised on defeating apartheid and putting in place a democratic dispensation underpinned by the rule of law and human rights. This responsibility required a leadership that is motivated by a high moral code and a framework of values that put a high sense of consciousness for social justice at the centre.

However, 23 years into the transition period, serious questions are being raised about the pace of change and the extent of its inclusiveness as well as a breakdown in governance. Too many people legitimately feel left out of the democratic dividend and are now furiously calling for faster socio-economic transformation.

The legitimate and loud calls for Radical Economic Transformation reflect the shortcomings of our development strategy and trajectory that has left millions of poor and under-educated people out of employment and other opportunities for self-improvement. Many people, including some in the new middle class, have expressed their frustrations with what is perceived as White Monopoly Capital as the biggest constraint and barrier to inclusive growth and development. But resorting to slogans that clearly mask weaknesses in policy and strategy execution will not change the stark realities that confront us.

It may be helpful therefore in the circumstances to interrogate the context we inherited at the dawn of democracy and how we may best handle these increasing and strident new calls for a new and radical approach to economic transformation that is also radical and inclusive.

The apartheid legacy was profoundly challenging and daunting in material terms. The ANC-led democratic state was confronted with:

Under these circumstances the ANC-led government had a moral obligation to respond to these challenges through a comprehensive set of social welfare grants and other benefits, such as rolling out free housing, access to electricity and water in order to mitigate the crippling effects of poverty and inequality.

However, the ability to sustain this vital commitment had to be underpinned by building a healthy and resilient financial position of the state. Therefore, implementing fiscal discipline and reducing the national debt that was limiting expenditure allocations was indeed top priority. Building a strong, credible and competent Treasury and SARS necessarily became a compelling and urgent need. This was not an easy policy and strategy to execute but ultimately we manged to reduce our budget deficit from 4.5% of GDP in 1994 to a surplus of 1.0% in 2008. Government debt also fell from 43% of GDP in 1994 to 27% in 2009.

This is the consolidation we needed to achieve in order to create a solid basis for more aggressive socio-economic transformation going forward.

Notwithstanding these impressive achievements, the contextual reality that confronts us is that more than 23 years after apartheid, far too many South Africans live in poverty. The principal reason for this, and for our enormous inequalities, is that far too few South Africans are employed. This has serious implications for our politics and stability and the populist declarations that are being made by the ANC and its affiliate organisations are a response to this reality and the fact that electoral loss in 2019 is now a real prospect following its dismal performance in the 2016 local elections. What then should have been done to avoid the current situation? What follows are some of the critical policy choices we needed to have executed successfully.

First; building a capable and efficient state and supporting state institutions at the three levels of government is, and continues to be, a top priority in the context of high and growing inequality, poverty and unemployment. Efficient service delivery is impossible without achieving visible success on this question. There is no doubt that the ANC perfectly understood this compelling necessity however, in the last ten years, the biggest focus and energy of the current administration was diverted to building a very successful patrimonial state staffed with incompetent but compliant cadres. And this objective has been achieved successfully. This is at the heart of the under-performance and rot that has been documented at the key institutions of state and state owned enterprises.

The collapse of governance at all levels indicates a state of mind of a leadership that had deviated from the mantra of a responsive and responsible leadership that motivated the generation of Mandela. As a result, the promise of a better life for all especially at the local level remains a distant dream.

Second; South Africas economy has been characterised as having very high levels of concentration and vertical integration and that it is also capital intensive. The large number of very serious anti-competitive behaviour cases in the market place attest to this view. There is also a credible view that it marginalises and excludes the small and medium enterprise sector. This is the challenge that has been at the centre of the challenge and need for radical economic transformation and democratisation.

But what has been missing is a highly focused strategy and determination to fortify our competition laws and progressively, but aggressively, break the monopolies and oligopolies that still define our economic framework twenty three years into democracy. Why have we been hesitant in pursuing an aggressive strategy on this issue? Is it because politically connected individuals sit on the boards of these companies that could have been the target of such aggressive policies?

Third; policy uncertainty and confusion contributes negatively to creating an investor and business friendly environment. The fundamental question we have to deal with is whether the current menu of growth policy strategies: Reconstruction and Development Programme (1994), Growth, Employment, and Redistribution (1996), Accelerated and Shared Growth Initiative-South Africa (2006), the New Growth Path (NGP of 2010) and the NDP, will indeed deliver the desired outcomes. We have also been introduced to the Nine Point Plan which now seems to be overtaken by a new populist catchphrase Radical Economic Transformation.

Johannes Fedderke states that There is not one country in the world that has addressed the problem of poverty without first getting on to a high growth trajectory. Growth is not a sufficient condition for solving the problem of poverty but it is certainly a necessary condition. Until more than a month ago some of us were reluctantly convinced that the green shoots of potential better growth prospects were beginning to show. But all this has been destroyed by the junk status that the president has so recklessly and senselessly gifted us.

How we manage to grow out of this quagmire depends on how the new minister of finance, with the support of the president, manages to maintain a steady policy certainty and terrain and rebuild a credible social pact with the domestic investor community. Investment in all the areas that have been identified as critical to triggering renewed domestic investment appetite will not happen until the trust that has been destroyed is restored in the shortest period. And this has become very urgent in the context of stagnant economic growth and possible recession.

Finally;

Against this moral framework, the current leadership manifests gaping fault lines and shortfalls that can only be corrected by a total leadership overhaul at all key levers of power. For this to happen, the ANC must act quickly and decisively.

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Why Anti-War Libertarians Should Join Greens in Boycotting and Divesting from Nuclear Weapons – Being Libertarian

Posted: at 12:27 am

There are approximately 15,000 nuclear weapons in the world today. Thats about 15,000 chances for an accident to happen or some suicidal madman to start a fiasco that will render the Earth uninhabitable (or nearly so) for humanity. Even a single detonation, without any retaliation, could kill millions of people.

This is an extinction threat. A threat of mass, mass violence. Surely, the goal of avoiding such extreme violence, the kind with the potential to cause the extinction of humanity, ought to transcend all other differences of opinion.

Fortunately, we can wage nonviolence against nuclear weapons. One of the strategies we are using is to identify nuclear weapons producing corporations, and the banks and other financial institutions investing in those nuclear weapons producers. Then we boycott and divest from those banks and other financial institutions. Nonviolent campaigns actually have twice the effectiveness of violent campaigns: The more violence, the less revolution.

This is just as well, as many of us believe that its impossible or at least unlikely to achieve good results by violent means anyway. As stated in a green Anarchist Cookbook, that means determine endsthe use of horrifying means guarantees horrifying ends. To quote Leo Tolstoy:

Some persons maintain that freedom from violence, or at least a great diminution of it, may be gained by the oppressed forcibly overturning the oppressive government and replacing it by a new one under which such violence and oppression will be unnecessary, but they deceive themselves and others, and their efforts do not better the position of the oppressed, but only make it worse. Their conduct only tends to increase the despotism of government. Their efforts only afford a plausible pretext for government to strengthen their power.

Even if we admit that under a combination of circumstances specially unfavorable for the government, as in France in 1870, any government might be forcibly overturned and the power transferred to other hands, the new authority would rarely be less oppressive than the old one; on the contrary, always having to defend itself against its dispossessed and exasperated enemies, it would be more despotic and cruel, as has always been the rule in all revolutions.

While socialists and communists regard the individualistic, capitalistic organization of society as an evil, and the anarchists regard as an evil all government whatever, there are royalists, conservatives, and capitalists who consider any socialistic or communistic organization or anarchy as an evil, and all these parties have no means other than violence to bring men to agreement. Whichever of these parties were successful in bringing their schemes to pass, must resort to support its authority to all the existing methods of violence, and even invent new ones.

The oppressed would be another set of people, and coercion would take some new form; but the violence and oppression would be unchanged or even more cruel, since hatred would be intensified by the struggle, and new forms of oppression would have been devised. So it has always been after all revolutions and all attempts at revolution, all conspiracies, and all violent changes of government. Every conflict only strengthens the means of oppression in the hands of those who happen at a given moment to be in power.

[]

And of this mass of men so brutalized as to be ready to promise to kill their own parents, the social reformersconservatives, liberals, socialists, and anarchistspropose to form a rational and moral society. What sort of moral and rational society can be formed out of such elements? With warped and rotten planks you cannot build a house, however you put them together. And to form a rational moral society of such men is just as impossible a task. They can be formed into nothing but a herd of cattle, driven by the shouts and whips of the herdsmen. As indeed they are.

Even your own philosopher Mr. Rothbard found pragmatic reason to support nonviolent revolution, In the coming period, then, it becomes especially important for radicals in the anti-war movement to avoid as the plague any stigma of violence, which would reverse the process of radicalizing the liberal masses, and give Nixon the opportunity to move unopposed into open fascism.

Nuclear weapons producers include: Boeing, Honeywell International, Lockheed Martin, Airbus Group, Aecom, Northrop Grumman, Leonardo-Finmeccanica, Bechtel, Fluor, Orbital ATK, BAE Systems, Raytheon, Safran, General Dynamics, Huntington Ingalls Industries, Jacobs Engineering, Textron, Thales, Moog, Serco, BWX Technologies, Larsen & Toubro, Aerojet Rocketdyne, CH2M Hill, Engility, Charles Stark Draper Laboratory, and Walchandnagar Industries.

The top 10 banks and other financial institutions investing in nuclear weapons, based on the data we have available, are: BlackRock, Capitol Group, Vanguard, State Street, Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, Evercore, and Goldman Sachs.

All of these top 10 banks and financial institutions are US-based companies. To quote the specifics:

BlackRock (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 32,032 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included. [] BlackRock (United States) owns or manages bonds of the nuclear weapon companies for an amount of US$ 837 million []. Only holdings of 0.50% or more of the outstanding bonds at the most recent available filing date are included.

Capital Group (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 28,677 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included.

Vanguard (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 26,493 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included. [] Vanguard (United States) owns or manages bonds of the nuclear weapon companies for an amount of US$ 1,450 million []. Only holdings of 0.50% or more of the outstanding bonds at the most recent available filing date are included.

State Street (United States) provided loans for an estimated amount of US$ 352 million to the nuclear weapon companies []. The table shows all loans closed since January 2013 or maturing after August 2016. [] State Street (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 27,374 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included. [] State Street (United States) owns or manages bonds of the nuclear weapon companies for an amount of US$ 54 million []. Only holdings of 0.50% or more of the outstanding bonds at the most recent available filing date are included.

Bank of America (United States) provided loans for an estimated amount of US$ 10,048 million to the nuclear weapon companies []. The table shows all loans closed since January 2013 or maturing after August 2016. [] Bank of America (United States) underwrote share issuances for an estimated amount of US$ 4,114 million to the nuclear weapon companies since January 2013 [] Bank of America (United States) underwrote bond issuances for an estimated amount of US$ 4,216 million to the nuclear weapon companies since January 2013 [] Bank of America (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 6,646 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included.

JPMorgan Chase (United States) provided loans for an estimated amount of US$ 12,569 million to the nuclear weapon companies []. The table shows all loans closed since January 2013 or maturing after August 2016. [] JPMorgan Chase (United States) underwrote share issuances for an estimated amount of US$ 406 million to the nuclear weapon companies since January 2013 [] JPMorgan Chase (United States) underwrote bond issuances for an estimated amount of US$ 3,629 million to the nuclear weapon companies since January 2013 [] JPMorgan Chase (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 5,514 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included. [] JPMorgan Chase (United States) owns or manages bonds of the nuclear weapon companies for an amount of US$ 60 million []. Only holdings of 0.50% or more of the outstanding bonds at the most recent available filing date are included.

Citigroup (United States) provided loans for an estimated amount of US$ 12,989 million to the nuclear weapon companies []. The table shows all loans closed since January 2013 or maturing after August 2016. [] Citigroup (United States) underwrote share issuances for an estimated amount of US$ 348 million to the nuclear weapon companies since January 2013 [] Citigroup (United States) underwrote bond issuances for an estimated amount of US$ 4,184 million to the nuclear weapon companies since January 2013 [].

Wells Fargo (United States) provided loans for an estimated amount of US$ 6,302 million to the nuclear weapon companies []. The table shows all loans closed since January 2013 or maturing after August 2016. [] Wells Fargo (United States) underwrote bond issuances for an estimated amount of US$ 2,007 million to the nuclear weapon companies since January 2013 [] Wells Fargo (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 3,598 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included. [] Wells Fargo (United States) owns or manages bonds of the nuclear weapon companies for an amount of US$ 31 million []. Only holdings of 0.50% or more of the outstanding bonds at the most recent available filing date are included.

Evercore (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 10,843 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included.

Goldman Sachs (United States) provided loans for an estimated amount of US$ 3,495 million to the nuclear weapon companies []. The table shows all loans closed since January 2013 or maturing after August 2016. [] Goldman Sachs (United States) underwrote share issuances for an estimated amount of US$ 1,491 million to the nuclear weapon companies since January 2013 [] Goldman Sachs (United States) underwrote bond issuances for an estimated amount of US$ 3,599 million to the nuclear weapon companies since January 2013 [] Goldman Sachs (United States) owns or manages shares of the nuclear weapon companies for an amount of US$ 1,249 million []. Only holdings of 0.50% or more of the outstanding shares at the most recent available filing date are included. [] Goldman Sachs (United States) owns or manages bonds of the nuclear weapon companies for an amount of US$ 8 million []. Only holdings of 0.50% or more of the outstanding bonds at the most recent available filing date are included.

Here is the complete 2016 report, including all of the nuclear weapons investors we have data on, along with recommended nuclear weapons-free banking options for folks residing in the United Kingdom, Italy, or the Netherlands. You can find links to a number of country-specific Halls of Shame here. It is best to avoid all of the banks and other financial institutions listed in the Hall of Shame, but at the very least try to avoid the top 10. Possible alternatives include credit unions or small local banks not listed on the report. Its probably a good idea to write the pro-nuclear bank a letter explaining why you are divesting from them.

I realize the idea of a credit union may be distasteful to libertarians. Even so, consider how much worse it would be to blow up the world. Unless you wish to bring capitalist banks to cockroaches, surely avoiding pro-nuclear-weapon banks should be the priority. One of your own libertarian philosophers, Karl Hess, pointed out the impossibility of remaining neutral in situations such as these (short of not having a bank or credit union account at all), The impossibility of simple neutrality in this situation should be apparent. You cannot just say a pox on both of your houses because, unfortunately, you happen actually to live in one of the houses. By that act alone neutrality is made impossibleexcept for those very rare few who actually can withdraw totally, to dream out their isolation so long as, and only so long as, the unleashed dogs of the system, against which they have refused to struggle, are not set upon them.

The simple act of boycotting banks and other financial institutions is far less risky than the risk taken by green anarchist Henry David Thoreau, who while not as committed to nonviolence as most modern greens, went to jail for tax resistance in protest of the Mexican-American war, which was threatening to expand slavery into Mexico. If the alternative is to keep all just men in prison, or give up war and slavery, the State will not hesitate which to choose. If a thousand men were not to pay their tax bills this year, that would not be a violent and bloody measure, as it would be to pay them, and enable the State to commit violence and shed innocent blood. (We note that Thoreaus description of civil disobedience as a duty is rather reminiscent of Stoicism, see Epictetus for example.) And its much less risky than the risks taken by many modern greens, who are willing to risk things such as tear gas, rubber bullets, water cannons in freezing weather, and even death.

To quote Chase Iron Eyes:

Who are we to abandon our struggle? Who are we to forsake our ancestors sacrifices? Who are we to forsake the 550 people who have been arrested? Who are we to forsake those who have been shot with rubber bullets, those who have had their limbs blown open by law enforcement explosives? Who are we to forsake whove had their lives put in immediate risk by the water cannons in sub-freezing temperatures? Who are we not to stand up for our treaty rights, our human rights, our civil rights, and our constitutional rights, which are being brutally violated by the corporate state, by the police state. This isnt just a fight for our liberation, and the fight for our liberation is enough, enough on its own, but this is a fight for your constitutional rights, your human rights. This is a fight for a true dignified life. What youre asking us to do when you ask us to leave, is youre asking us to return to a state of imposed poverty. Youre asking us to return to a state of oppression, legal, economic, and political oppression, thats 500 years in the making. But we are also a new generation, with the tools, the mind, the strength, the fortitude, and the dignity, to dissect the institutions that this society has used to erase us, to try to make us feel ashamed of ourselves, and to try to disconnect us from our connections with the land, with the water. Thats why we cant leave. Whats happening here is an international monument, an international prayer monument, a living monument that lives in each and every one of us within which a sacred motion is at work, in every molecule of water on this earth. What we are saying is that we cant live like this anymore, and everybody whos here, everybody who has committed themselves to this struggle is here in love and compassion, bravery, and we are answering to our spiritual nature. Theres nothing to fear from us. We are not violent and we are unarmed, and because of that, we are stronger than any weapon, any bomb, any institution which seeks to brutalize our struggle. We will win this. This is how we win a peaceful revolution. But peace is not passive. Brothers and sisters, peace does not back down. Peace is power. And what you see here, in this whole camp is power, the power to connect with each other, and rely on each other.

If anything, banking with an institution that does not invest in nuclear weapons is probably safer. We are not demanding martyrdom here.

Your own libertarian philosophers, Mr. Rothbard and Mr. Childs, have written on the importance of nuclear disarmament and avoidance of war.

From Mr. Rothbards The Ethics of Liberty, Chapter 25, pages 190-191:

It has often been maintained, and especially by conservatives, that the development of the horrendous modern weapons of mass murder (nuclear weapons, rockets, germ warfare, etc.) is only a difference of degree rather than kind from the simpler weapons of an earlier era. Of course, one answer to this is that when the degree is the number of human lives, the difference is a very big one. But a particularly libertarian reply is that while the bow and arrow, and even the rifle, can be pinpointed, if the will be there, against actual criminals, modern nuclear weapons cannot. Here is a crucial difference in kind. Of course, the bow and arrow could be used for aggressive purposes, but it could also be pinpointed to use only against aggressors. Nuclear weapons, even conventional aerial bombs, cannot be. These weapons are ipso facto engines of indiscriminate mass destruction. (The only exception would be the extremely rare case where a mass of people who were all criminals inhabited a vast geographical area.) We must, therefore, conclude that the use of nuclear or similar weapons, or the threat thereof, is a crime against humanity for which there can be no justification. This is why the old clich no longer holds that it is not the arms but the will to use them that is significant in judging matters of war and peace. For it is precisely the characteristic of modern weapons that they cannot be used selectively, cannot be used in a libertarian manner. Therefore, their very existence must be condemned, and nuclear disarmament becomes a good to be pursued for its own sake. Indeed, of all the aspects of liberty, such disarmament becomes the highest political good that can be pursued in the modem world. For just as murder is a more heinous crime against another man than larceny so mass murder-indeed murder so widespread as to threaten human civilization and human survival itself-is the worst crime that any man could possibly commit. And that crime is now all too possible. Or are libertarians going to wax properly indignant about price controls or the income tax, and yet shrug their shoulders at or even positively advocate the ultimate crime of mass murder?

From Mr. Childs Review of Hospers Libertarianism:

Classical liberalism failed largely because of the pitfalls of utilitarianism, evolutionism, and its failure to confront in bold and uncompromising terms the growing militarism of the turn of the century. I think that this is the worst threat to libertarianism as well.

Mr. Rothbard, For a New Liberty page 334, the very nature of modern nuclear warfare rests upon the annihilation of civilians.

Mr. Rothbard, For a New Liberty page 347:

Many libertarians are uncomfortable with foreign policy matters and prefer to spend their energies either on fundamental questions of libertarian theory or on such domestic concerns as the free market or privatizing postal service or garbage disposal. Yet an attack on war or a warlike foreign policy is of crucial importance to libertarians. There are two important reasons. One has become a clich, but is all too true nevertheless: the overriding importance of preventing a nuclear holocaust. To all the long-standing reasons, moral and economic, against an interventionist foreign policy has now been added the imminent, ever-present threat of world destruction. If the world should be destroyed, all the other problems and all the other ismssocialism, capitalism, liberalism, or libertarianismwould be of no importance whatsoever. Hence the prime importance of a peaceful foreign policy and of ending the nuclear threat.

Mr. Rothbard, For a New Liberty page 366:

Since it is in the interest of all people, and even of all State rulers, not to be annihilated in a nuclear holocaust, this mutual self-interest provides a firm, rational basis for agreeing upon and carrying out a policy of joint and worldwide general and complete disarmament of nuclear and other modern weapons of mass destruction.

Mr. Rothbard, For a New Liberty pages 368-369:

To which we might add that anyone who wishes is entitled to make the personal decision of better dead than Red or give me liberty or give me death. What he is not entitled to do is to make these decisions for others, as the prowar policy of conservatism would do. What conservatives are really saying is: Better them dead than Red, and give me liberty or give them deathwhich are the battle cries not of noble heroes but of mass murderers. In one sense alone is Mr. Buckley correct: in the nuclear age it is more important to worry about war and foreign policy than about demunicipalizing garbage disposal, as important as the latter may be. But if we do so, we come ineluctably to the reverse of the Buckleyite conclusion. We come to the view that since modern air and missile weapons cannot be pinpoint-targeted to avoid harming civilians, their very existence must be condemned. And nuclear and air disarmament becomes a great and overriding good to be pursued for its own sake, more avidly even than the demunicipalization of garbage.

Granted, Mr. Rothbard and Mr. Childs leaned much further in the direction of pacifism than many modern libertarians, but even so, surely the important matter of not destroying the world should be sufficient cause for solidarity between greens and libertarians on this issue, regardless of our other differences?

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Head of UW-Madison student gov. leaves in a huff; blames racism, oppression – The College Fix

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Head of UW-Madison student gov. leaves in a huff; blames racism, oppression

The outgoing chair of the University of Wisconsin-Madison student government ripped her college upon departure, saying it lacks the capacity, courage, and integrity to protect communities of color.

The Daily Cardinal reports that in a letter addressed to the entire UW-Madison community, Carmen Gosy wrote I was operating in a white position as a person of color [] Now I see the University was not designed for the success of minority communities; it was designed for white students to learn about my oppression while not having to participate in dismantling it.

She added all white people are racist and that her chairmanship of the Associated Students of Madison made her a token for white supremacists.

From Gosys letter (via The Daily Wire):

As I move on from the role as Chair of Student Council, I believe it is necessary to leave honestly. The University is on stolen, Ho-Chunk land, yet does little to recognize its historic significance. For the University to truly recognize this sacred land and its inhabitants it would have to acknowledge the resentment and oppression that people of color face every day. This institution perpetuates and suppresses the voices that are the most vulnerable. As Chair, I used to be hopeful. I used to be proud. I am no longer content with the Universitys action and active silencing of students of color on this campus. I ask people of color to reconsider your place at this institution. I ask parents of color to rethink sending your children to this institution.

Racism is an institutionalized structure which is embedded in ASM and the University. Racism is a system designed to disadvantage people of color and create inequalities in each pocket os society. All white people are racist. Not only by upholding a system of disadvantage but being born into a conditioned environment where you are many steps ahead. Being a racist is not an option, it is a condition. However, being an anti-racist is a choice. A choice that white people will have to make which boils down to what they are willing to do toactivelyparticipate in deconstructing racism.

Gosy signs off Your woke, ratchet23rdASM Chair CarmenGosy. (Wait isnt ratchet racist??)

Two First Wave UW-Madison students support Gosys statement, according to The Daily Cardinal. One of them, Cortez de la Cruz II (who helped to organize protests against Ben Shapiro and Steve Forbes), said the universitys slow response time to racist incidents is an example of it not protecting minority students.

He added: [Gosy] as well as POC bend over backwards to even just fight for the basic human rights that we should have on this campus.

MORE: Student gov. forced to recognize libertarian student group it called dangerous

MORE: Universitys student gov. restricts who can use the schools inclusion pledge

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Addicted to the war on drugs – NY Daily News – New York Daily News

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America and the world have learned hard lessons about the failings of the war on drugs.

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Trump is planning to effectively kill the office that has traditionally spearheaded the ‘War on Drugs’ – Yahoo News

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(Republican U.S. presidential candidate Donald Trump speaks, as New Jersey Governor Chris Christie (L) looks on, during Trump's five state primary night event in New York City, U.S., April 26, 2016.Reuters/Carlo Allegri) The Trump administrationplans tocut 96% of the budget ofthe Office of National Drug Control Policy (ONDCP), effectively eliminating the federal agency that has traditionally been used to spearhead the war on drugs, according to multiple media reports.

The White House Office of Management and Budget's proposed fiscal year 2018 budget reduces the funding request for ONDCP from $388 million in 2017 to $24 million, according to a leaked memofirstreported by CBS News.

The cuts would eliminate approximately half ONDCP's staff, around 33 employees, as well as "intelligence, research and budget functionsat the agency, as well as the Model State Drug Laws and Drug Court grant programs,"CBS reported Friday.

"These cuts are frankly heartbreaking and, if carried out, cause us to lose many good people who contribute greatly to ONDCP's mission and core activities," Acting Director Richard Baumwrote in an email to ONDCP staff obtained by CBS.

Baum added that news is "discouraging," but told staff "not to panic" and that "events are unfolding."

In addition, the budget proposes to eliminate multiple grant programs administered by ONDCP, including theHigh Intensity Drug Trafficking Areas (HIDTA) program and the Drug-Free Communities Supportprogram, which the memo called "duplicative of other efforts across the Federal government and supplant State and local responsibilities."

Staff was notified of the budget cuts on Friday. Baum, who was aware of the impendingcuts last week, had reportedly been lobbying Jared Kushner, Trump's senior adviser and son-in-law, to keep the agency's budget intact.

In February, when rumors first began circulating that Trump might cut ONDCP's budget, a coalition of medical and drug policy organizations sent a letter toMick Mulvaney, the director of the Office of Management and Budget, urging for ONDCP to remain at the center of efforts to fight drug use.

"At a time when drugs now kill more people than firearms or car crashes, it is more important than ever for ONDCP to remain a strong voice in the White House and a visible presence nationally," the letter read.

But some drug policy experts are cautiously optimistic at the agency's elimination.

"Unfortunately, the ONDCP has a history of advancing predominatively counter-productive policies,"Grant Smith,deputy director of national affairs at the Drug Policy Alliance, told Business Insider, notingthat DPA has supported the "dismantling" of the agency.

Smith noted that elimination of theagency could actually accelerate efforts to treat drug use as a public health, rather than criminal issue, if it means less funding for programs like HIDTA.

But that depends, Smith said, on ifthe nation's drug policy is in the hands of Attorney General Jeff Sessions, who has called for cracking down on drug offenders, or someone else.

The ONDCP was first created in 1988 by the Anti-Drug Abuse Act at the height of the crack epidemic and the so-called War on Drugs.

Tom Angell, the founder ofpro- marijuana legalization group Marijuana Majority, told Business Insiderthat it was only during the last years of the Obama Administration, under the direction of then-ONDCP director Michael Botticelli, that the agency made positive efforts towards harm reduction and treatment policies. Traditionally, according to Smith, the agency has been at the forefront of efforts to prosecute and stigmatize drug use.

ONDCP's proposed elimination comes after Trump signed an executive order in March to establish a national commission to address the opioid crisis, headed by New Jersey Gov.Chris Christie. The commission, which was due to receive "administrative support" from ONDCP, was tasked with coming up with strategies to address the crisis.

Many experts said the president's action is "underwhelming."

The reportscome one day after Rep. Tom Marino announced that he was withdrawing from consideration for the appointment of ONDCP director, the position more informallyknown as the Drug Czar, after more than a month of speculation that he would serve. The Pennsylvania Republican was one of Trumps earliest supporters in Congress.

The White House didn't immediately respond to a request for comment.

NOW WATCH: Yale history professor: Heres why it's useful to compare Trump's actions to Hitler's

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