Finance

President Trump Morphs into George McGovern! Didn’t See THAT Coming!

/ Jack Marshall / 31 Comments

In 1972, on the way to an epic trouncing by Richard Nixon in that year’s Presidential race, nice, clueless, ultra-liberal Sen. George McGovern’s flower child-fueled campaign was roundly mocked for a proposal to give a thousand dollars to every man, woman and child. This was called the ultimate nanny state hand-out plan, among the more polite criticisms of it. Now President Donald Trump, hardly one for tie-dyed shirts, says he wants to give most Americans a $2,000 handout funded from tariffs.

“A dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” the President wrote last week in a Truth Social post. U.S. Treasury Secretary Scott Bessent told Fox News that the rebates would likely be given to families making “less than, say, $100,000.”  They might get a puppy and candy too.

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Talk About “The Wrong Hill To Die On”: Lisa Cook’s Refusal To Obey The President’s Lawful Dismissal Is Just Defiance

/ Jack Marshall / 2 Comments

The woman doesn’t have a metaphorical leg to stand on, except the disgusting (but still reflex), “There goes that racist Trump again, trying to bring down a black woman.”

“I strongly recommend that you suspend Ms. Cook from the Federal Reserve Board immediately,” states senior DOJ Ed Martin’s letter to Federal Reserve Chairman Jerome Powell. Of course. If he doesn’t suspend her, that’s grounds to fire Powell. “No one believes it’s appropriate for her to remain in her role while serious questions linger,” wrote Martin. That’s not quite right: Democrats and the Trump Deranged believe that everyone should just refuse to acknowledge that Donald Trump is President of the United States.

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An Incomplete Preview of Coming Attractions (Or Upheavals, or Reforms, Depending on One’s Point of View…)

/ Jack Marshall / 18 Comments

I have hinted here at various times recently of a major ethics project that I am working on relating to a growing and so far barely recognized scandal in the civil justice system. It is time to reveal a few details.

There are corrupt tactics and practices in the legal world centering on the litigation of mass torts. They are responsible for losses totaling billions of dollars inflicted on the victims of injury, plaintiffs, corporate shareholders, and taxpayers. These have metastasized over the last decade, spread by the opportunities created by too-loosely regulated law firms being allowed to include non-lawyer partners (in D.C., Arizona, and Utah), the rapid explosion of litigation financing provided directly to lawyers and law firms after a century of being regarded as an unethical practice to be avoided, and a tsunami of unethical and deceptive maneuvers that have been largely ignored by or unreported to the legal profession’s ethics watchdogs.

Quite by accident, I became aware of these practices in my legal ethics practice, frequently by being retained by lawyers and law firms who were the victims of them, and whose clients were at risk as a result. I was stunned at the depth of ignorance of this scandal among most lawyers, which, of course, is one major reason why it continues unabated. I began having regular discussions with legal ethics authorities, and, upon finding a whistleblower who had been an architect of many of these practices, began assembling a coalition, still growing, to expose the bad actors, tighten up the laws, regulations and legal ethics rules that have allowed them to thrive, and to overhaul the system itself that is neither trustworthy nor safe.

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Witness to “Pay to Play”

/ Jack Marshall / 14 Comments

I am not quite ready to write about the project I am currently involved in, but when I do, it will be a major story, and not just on Ethics Alarms. I found myself, mostly by happenstance, at Ground Zero in a massive scandal for the legal profession. Now I am working to expose it, make the public and the legal profession aware of it, and to both fix the problem and take measures in multiple sectors to ensure that it is permanently fixed. I’m not doing this alone; indeed I am focusing primarily on the ethical regulation front. However, the alliance is growing, and includes an insider whistle-blower, several public interest organizations, litigators, law firms, and at least one national association.

Regard the foregoing as a preview of coming attractions. This post is about a conversation I witnessed that continues to bother me, and will probably bother you as well. Some of the participants in the project were meeting with a prominent, well-connected D.C. attorney with a long history of legislative involvement. The topic was whether an Executive Order from the President would super-charge our effort. The lawyer said that he was close to an individual who “meets with the President every week” and that the contact was capable of carrying the EO request into the Oval Office.

“But it will cost you,” the lawyer said. “Access isn’t free.” “How much?” one of my delegation asked. “You give me a figure,” was the answer, “and I’ll let you know what would get it done.” The lawyer shook his head and smiled at $100,000, and kept giving a negative response until the number reached $100 million.” Now you’re talking,” he said. “That’s what this kind of thing takes.”

The group is confident that it could raise that kind of money—the scam we will expose and undo involves billions—but its ethics consultant, me, pointed out that our mission is to eliminate widespread and destructive unethical conduct. Using unethical means to accomplish that goal will taint the whole enterprise, corrupt it, and undermine trust in its motives and participants.

There will be no $100 million pay-to-play cash deals, at least as long as I am involved. However, the bland, “it’s always done this way”/”that’s just how Washington works” response we got from that prominent lawyer is by turns chilling, disillusioning, and discouraging.

Comment of the Day: “Important Note on the News Media’s War on President Trump”

/ Jack Marshall / 6 Comments

Yesterday was another Axis media freak-out day over Trump Administration II. The first hundred days were officially over, thus it was a fine time for the Trump Deranged pimping for a socialist future and trying to pretend that they hadn’t propped up a fake President for four looooong years to tell us the nation is doomed because this time we know who is President and he is orange Hitler-Satan. It was really quite a spectacle, almost screaming-at-the-sky-level nuts. I regret not posting Chris Marschner‘s excellent Comment of the Day on tariffs then for contrast. It’s clear that the vast, vast, vast number of your progressive friends and mine literally don’t know what the hell they are talking about regarding tariffs, and the news media most people are likely to read as well as broadcast news regard the topic as the equivalent of a public reading of Proust. So all the whiners in the echo chamber know is that tariffs are bad. Then again, today’s doomsday chorus is almost as vocal as yesterday. Let’s see…there are at least eleven “Trump is a monster and going to destroy us” headlines on the New York Times home page if you count cleverly deceptive ones like In an Uncertain Economy, McDonald’s Sees Spending Decline. (McDonald’s has been charging obscenely high prices for crummy food since Democrats inflicted higher minimum wages on their unskilled workforce and inflation spiked during Biden’s presidency, so the “spending decline” has nothing to do with Trump. I’ve declined to go to a nearby Mickey D’s when I want a quick semi-edible meal since in 2022…)

Here is Chris’s Comment of the Day on the post, “Important Note on the Newsmedia’s War on President Trump”:

***

Americans in general have become spoiled. They do not seem to want to look beyond the immediate present to consider what is best for the nation in the long term.

[Commenter] Marrissa said “Everyone including people who love Trump want a good economy, low prices, and not have our important information leaked by someone who knows better.”

The question is at what cost? Low prices come at a cost to someone. Every dollar we give to China is one more they use to advance their Belt and Road strategy of global dominance. We fought a war here over the issue of slavery because it was at our doorstep but today we turn a blind eye to factory farms of China on which people are virtually imprisoned so we can get low prices on all sorts of products. I suppose it is not that we are against slavery we just don’t want to see it.

Just ten years ago the MXN Peso was worth about a dime and it is now worth less than a Nickel which means goods produced there cost half as much in terms of dollars. How is that possible if the US trade deficit with Mexico has exploded in that time frame? Demand for Mexican goods drive the value of a countries currency. The answer is foreign government manipulation.

What exactly does a good economy look like? Does it mean full employment even if that employment means part time work in multiple jobs or does it mean a balance between temporal value creation in service work and long term value creation in manufacturing. I say it means the latter even if it requires periodic realignments of resources between industrial production.

[Commenter Extradimensional Cephalopod] stated “People don’t like Trump because he seems almost actively hostile to the idea of demonstrating foresight and conscientiousness, even when it would work out better for his actual goals and his public image.”

How can EC say this? Is EC privy to the President’s deliberations? Trump had four years to develop a strategy and the say that he is hostile to demonstrating foresight and conscientiousness comes only from what he is able to glean from news reports. The exact same argument can be turned around on Trump’s critics because they are only looking toward the next election and not the impact on future generations.

EC questions the use of tariffs but there are few other tools in a presidential arsenal to limit the amount of American wealth being transferred to the CCP. How effective would moral suasion work on the American people with a fireside chat by Trump explaining the need to buy American products to protect our industries? It wouldn’t. Every country believes its consumers are an economic asset. Every dollar they spend on domestic goods and services directly benefits the domestic economy. Imports are treated as wealth leakages. We try to offset our wealth leakages with our exports that brings new wealth to our economy.

Much ink has been spilled condemning the tariffs but very little on some of the positive effects.

U.S.-based investments in President Trump’s second term:

Source: TRUMP EFFECT: A Running List of New U.S. Investment in President Trump’s Second Term – The White House

  • Project Stargate, led by Japan-based Softbank and U.S.-based OpenAI and Oracle, announced a $500 billion private investment in U.S.-based artificial intelligence infrastructure.
  • Apple announced a $500 billion investment in U.S. manufacturing and training.
  • NVIDIA, a global chipmaking giant, announced it will invest $500 billion in U.S.-based AI infrastructure over the next four years amid its pledge to manufacture AI supercomputers entirely in the U.S. for the first time.
  • IBM announced a $150 billion investment over the next five years in its U.S.-based growth and manufacturing operations.
  • Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment in U.S.-based chips manufacturing.
  • Johnson & Johnson announced a $55 billion investment over the next four years in manufacturing, research and development, and technology.
  • Roche, a Swiss drug and diagnostics company, announced a $50 billion investment in U.S.-based manufacturing and research and development, which is expected to create more than 1,000 full-time jobs and more than 12,000 jobs including construction.
  • Eli Lilly and Company announced a $27 billion investment to more than double its domestic manufacturing capacity.
  • United Arab Emirates-based ADQ and U.S.-based Energy Capital Partners announced a $25 billion investment in U.S. data centers and energy infrastructure.
  • Novartis, a Swiss drugmaker, announced a $23 billion investment to build or expand ten manufacturing facilities across the U.S., which will create 4,000 new jobs.
  • Hyundaiannounced a $21 billion U.S.-based investment — including $5.8 billion for a new steel plant in Louisiana, which will create nearly 1,500 jobs.
    • Hyundai also secured an equity investment and agreement from Posco Holdings, South Korea’s top steel maker.
  • United Arab Emirates-based DAMAC Properties announced a $20 billion investment in new U.S.-based data centers.
  • France-based CMA CGM, a global shipping giant, announced a $20 billion investment in U.S. shipping and logistics, creating 10,000 new jobs.
  • Merck announced it will invest $8 billion in the U.S. over the next several years after opening a new $1 billion North Carolina manufacturing facility.
  • Clarios announced a $6 billion plan to expand its domestic manufacturing operations.
  • Stellantis announced a $5 billion investment in its U.S. manufacturing network, including re-opening its Belvidere, Illinois, manufacturing plant.
  • Regeneron Pharmaceuticals, Inc., a leader in biotechnology, announced a $3 billion agreement with Fujifilm Diosynth Biotechnologies to produce drugs at its North Carolina manufacturing facility.
  • NorthMark Strategies, a multi-strategy investment firm, announced a $2.8 billion investment to build a supercomputing facility in South Carolina.
  • Chobani, a Greek yogurt giant, announced a $1.2 billion investment to build its third U.S. dairy processing plant in New York, which is expected to create more than 1,000 new full-time jobs — adding to the company’s earlier announcement that it will invest $500 million to expand its Idaho manufacturing plant.
  • GE Aerospace announced a $1 billion investment in manufacturing across 16 states — creating 5,000 new jobs.
  • Amgen announced a $900 million investment in its Ohio-based manufacturing operation.
  • Schneider Electric announced it will invest $700 million over the next four years in U.S. energy infrastructure.
  • GE Vernova announced it will invest nearly $600 million in U.S. manufacturing over the next two years, which will create more than 1,500 new jobs.
  • Abbott Laboratories announced a $500 million investment in its Illinois and Texas facilities.
  • AIP Management, a European infrastructure investor, announced a $500 million investment to solar developer Silicon Ranch.
  • London-based Diageo announced a $415 million investment in a new Alabama manufacturing facility.
  • Dublin-based Eaton Corporation announced a $340 million investment in a new South Carolina-based manufacturing facility for its three-phase transformers.
  • Germany-based Siemens announced a $285 million investment in U.S. manufacturing and AI data centers, which will create more than 900 new skilled manufacturing jobs.
  • Clasen Quality Chocolate announced a $230 million investment to build a new production facility in Virginia, which will create 250 new jobs.
  • Fiserv, Inc., a financial technology provider, announced a $175 million investment to open a new strategic fintech hub in Kansas, which is expected to create 2,000 new high-paying jobs.
  • Paris Baguette announced a $160 million investment to construct a manufacturing plant in Texas.
  • TS Conductor announced a $134 million investment to build an advanced conductor manufacturing facility in South Carolina, which will create nearly 500 new jobs.
  • Switzerland-based ABB announced a $120 million investment to expand production of its low-voltage electrification products in Tennessee and Mississippi.
  • Saica Group, a Spain-based corrugated packaging maker, announced plans to build a $110 million new manufacturing facility in Anderson, Indiana.
  • Charms, LLC, a subsidiary of candymaker Tootsie Roll Industries, announced a $97.7 million investment to expand its production plant and distribution center in Tennessee.
  • Toyota Motor Corporation announced an $88 million investment to boost hybrid vehicle production at its West Virginia factory, securing employment for the 2,000 workers at the factory.
  • AeroVironment, a defense contractor, announced a $42.3 million investment to build a new manufacturing facility in Utah.
  • Paris-based Saint-Gobain announced a new $40 million NorPro manufacturing facility in Wheatfield, New York.
  • India-based Sygene International announced a $36.5 million acquisition of a Baltimore biologics manufacturing facility.
  • Asahi Group Holdings, one of the largest Japanese beverage makers, announced a $35 million investment to boost production at its Wisconsin plant.
  • Cyclic Materials, a Canadian advanced recycling company for rare earth elements, announced a $20 million investment in its first U.S.-based commercial facility, located in Mesa, Arizona.
  • Guardian Bikes announced a $19 million investment to build the first U.S.-based large-scale bicycle frame manufacturing operation in Indiana.
  • Amsterdam-based AMG Critical Minerals announced a $15 million investment to build a chrome manufacturing facility in Pennsylvania.
  • NOVONIX Limited, an Australia-based battery technology company, announced a $4.6 million investment to build a synthetic graphite manufacturing facility in Tennessee.
  • LGM Pharma announced a $6 million investment to expand its manufacturing facility in Rosenberg, Texas.
  • ViDARR Inc., a defense optical equipment manufacturer, announced a $2.69 million investment to open a new facility in Virginia.

That doesn’t even include the U.S. investments pledged by foreign countries:

  • United Arab Emirates announced a $1.4 trillion investment in the U.S. over the next decade.
  • Saudi Arabia announced it intends to invest $600 billion in the U.S. over the next four years.
  • Japan announced a $1 trillion investment in the U.S.
  • Taiwan announced a pledge to boost its U.S.-based investment.

I don’t recall the media making much about this at all.

I challenge those who believe that Trump is leading us down a road to ruin with tariffs to put forth an alternative. If we would have recommended that all goods imported into the United States meet our stricter environmental and workplace safety standards in lieu of tariffs it would mean that virtually no Chinese goods could enter our consumption stream. Electric vehicles would become impossible to produce because the costs of extracting the raw materials would be prohibitively expensive without the child labor employed. Global workers would have to be paid in accordance to our minimum wage laws. We can’t have that either because we all want more stuff at the lowest possible price. Our grandkids be damned. Let them pay the bill.

How Dishonest Is Harvard? Here’s a Clue…

/ Jack Marshall / 5 Comments

My Spring edition of the Harvard alumni magazine just arrived. It was clearly written before Trump’s assault on the school had reached its current zenith, but the magazine’s spinning away of Harvard’s various ethical transgressions was still in evidence, as it always is.

I found one feature more head-exploding than the rest. An alum of recent vintage mocked a previous issue essay warning that Harvard’s “financial foundations” were “at risk” of being “shattered” because of Trump’s barbarians in Washington breaching the metaphorical gates. Pointing to his alma mater’s approximately 53 billion dollar endowment, the contrarian grad wrote, “Given the general Harvard ethos that taxing the rich is a virtue, you would think that taxing the richest—-Harvard—would be embraced, not cause for alarm. What hypocrisy.”

The editor tit-tutted that the writer was mistaken, because Harvard’s endowment per student was less than some other institutions, such as Princeton. Oh. What a neat way to minimize the size of an massive endowment! Amusingly, another letter in the same issue suggested that Harvard use that device, endowment dollars per student, to combat attacks, stating the endowment as “X dollars per student” rather than cumulatively.

Obviously, the staff adopted the suggestion immediately.

The YouGov. Poll: Maybe Americans Are Just Too Stupid and Unethical For Democracy to Survive After All…

/ Jack Marshall / 13 Comments

All research indicates that the majority of Americans, not having the IQ’s of Pet Rocks, recognize that our bloated government is corrupt, inept and wasteful. Pew Research polling concluded that 56% of Americans felt that way last year. “Nearly 2/3 of Americans fear that our government is run by corrupt officials, stated another survey. In January, A.P.-NORC researchers found that 70% of Americans believe corruption in the federal government is a serious problem.

Despite these beliefs, only 39 % of Americans polled gave DOGE a “favorable” rating in the latest The Economist/YouGov poll, with”unfavorable” at 36%, and the human slugs who chose “don’t know” came in at a whopping 25%. Another poll this month found only 49% approving DOGE’s cost-cutting efforts.

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Pop Ethics Quiz! What Is The Ethical Response To An Adult Who Posts This Fatuous Meme…

/ Jack Marshall / 48 Comments

…other than “You are an ignorant moron!”?

Surprise ! Open Forum!

/ Jack Marshall / 64 Comments

September and October 2024 are going down in the ProEthics annals as the busiest months since the pandemic freakout and among the busiest months of ethics consulting I’ve had ever. What this means, I do not know, but today, once again, I have legal training session that will occupy my attentions this morning. Thus I am opening the weekly free-for-all a day early.

The big news, but with no details yet, is that New York City Mayor Eric Adams is about to be indicted. I expected this, not necessarily with Adams but with one or more of the horrible crop of arrogant, autocratic Democrat mayors who run so many of our major cities. They have a collective chip on their shoulders the size of El Capitan, most of them are “of color” and determined to make up for lost time and opportunity. I expect more of this: the Democratic Party has spawned a culture of corruption that is dangerous and increasingly difficult to hide.

Speaking of a culture of corruption, Paul Pelosi once again read tea leaves or something and guessed what the Feds were about to do to Visa, so he dumped $500,000 in the company’s stock two months before the company was sued for anti-competitive business practices. He has done a lot of this investment management magic since his wife has been a power in Congress. The X account “Nancy Pelosi Stock Tracker” flagged the trade when the Department of Justice filed its lawsuit against Visa, alleging that the company maintained an illegal monopoly over the U.S. debit card market.

Nothing to see here, move along…

But I digress. The ethics topics are up to you.

THIS Is Ethics Zugzwang: The Infrastructure Problem

/ Jack Marshall / 15 Comments

The tweet above illustrates a modern ethics zugzwang phenomenon. I was struck by the tweet because I had recently had an argument with my relentlessly Democratic sister about the Supreme Court’s decision in Relentless v. Department of Commerce and Loper Bright Enterprises v. Raimondo, striking down the landmark 1984 decision in Chevron v. Natural Resources Defense Council that made federal agencies the presumptive lawmakers in matters Congress had not specifically addressed if an agency rule was “reasonable.” She believes that Chevron’s fall will be a disaster.

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