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Operation Choke Point 2.0 is Emerging

I was just thinking about this old Obama administration program this week as it is a web tag it used years ago. Additionally, there was a time that Congressman Darryl Issa came to Clearwater to speak, an event I attended and he spoke on this disgusting program among other topics.

Well, Kelsy Bolar is on the case and a big hat tip to her for the alarm she is sounding. Let’s keep in mind the moves that Bank of America made in partnership with the FBI to report their own customers’ banking records for that they asserted went to Washington DC to begin a revolution at the Capitol on January 6. You can imagine that this program is quite the top in the halls of Congress by progressives.

Operation Choke Point: The Government's Covert War on ...

Here goes:

Amongst the record-breaking number of executive actions taken by President Joe Biden was one related to a little-known, frightening Obama-era program called Operation Choke Point. The program, dubbed so under former Attorney General Eric Holder, uses the power of the federal government to target legal yet leftist-disfavored businesses. These include gun sellers, pawnshops, and short-term money lenders.

The Trump administration did its best to end this blatantly unconstitutional program that sought to discriminate against legal industries. In 2017, the Justice Department declared the program “formally over.” At the end of Trump’s term, the Office of the Comptroller of the Currency established the Fair Access rule to solidify its culmination.

Operation Choke Point... DOJ Cuts Businesses From Banks

But on Jan. 28, the Office of the Comptroller of the Currency under President Biden announced it would pause the Trump-era rule intended to prevent another Operation Choke Point from happening again.

The Backstory of Operation Choke Point

The Trump administration rule appeared innocuous enough, instructing banks to “conduct risk assessments of individual customers, rather than make broad-based decisions affecting whole categories or classes of customers when providing access to services, capital, and credit.”

Under Operation Choke Point, federal regulators instructed banks to do the opposite — to openly discriminate against entire industries the Obama administration found objectionable. Weaponizing the power of banking regulators at the Federal Deposit Insurance Corp. and the Office of Comptroller of the Currency, the Obama administration realized it could block entire industries from the banking system that it didn’t like. This made it difficult — if not impossible — for politically unfavored businesses such as gun sellers and short-term lenders to operate.

Essentially, by using the power of federal banking regulators to intimidate banks from providing their services to these industries, the administration choked off their access to the financial system, leaving them paying more for essential banking services, or unable to use a bank at all.

The Obama administration claimed the program was intended to root out fraud by cutting off “high risk” industries from the banking system. But the administration didn’t make any differentiation between legal and illegal “high risk” industries, intentionally grouping lawful industries such as firearms sellers with patently illegal activities like Ponzi and credit-card schemes.

Different agencies within the Obama administration denied wrongdoing in various ways. At least one bank, however, admitted to choking off three legal enterprises at the government’s behest. Dozens of business owners — many of them gun sellers and short-term lenders — said their bank accounts and access to credit card processing platforms were suddenly stymied or shut down with no explanation and no opportunity for recourse.

Given its stained reputation, we shouldn’t expect the Biden administration to bring back Operation Choke Point under the same shameless name. But the return of the larger strategy behind Operation Choke Point appears here to stay.

Whereas seven years ago the idea of using the powers of the federal government to choke certain Americans from public life was controversial enough for the Obama administration to deny wrongdoing, in today’s era of social justice and cancel culture, it’s applauded.

Build Your Own Banks

Within corporate America, an employee was run out of Boeing over an article he published 33 years beforehand arguing women shouldn’t serve in combat (a position many Americans hold today). In the media, a Jewish, pro-Israel, pro-choice, bisexual writer was choked from The New York Times for not being leftist enough.

In Hollywood, a conservative actress was choked from Disney for expressing politically incorrect views on her private social media account. In the beauty blogging world, a conservative blogger was ousted from her role as a Sephora representative.

For all intents and purposes, Operation Choke Point is happening every day on a massive scale. Yet instead of “just” choking off access to capital and banking services, we’re witnessing a stranglehold on information, speech, and the broader marketplace of ideas. Concerningly, the government is now playing an active role.

As exemplified by Parler and the recent Twitter purge, Big Tech is choking conservatives off their social media platforms while Democrats cheer it on. In an attempt to choke conservatives out of entire industries of employment, critical race theory training and pledges are being forced on schools, government workplaces, and the armed forces.

This Dynamic Is Now Worse

Signs of Operation Choke Point’s formal resurrection are symbolic of the larger attempt by government actors to choke politically disfavored industries and individuals from the mainstream. While cancel culture has led to a politicized economy, the federal government’s arbitrarily targeting of individuals, groups, and entire companies will increase the politicization of the country, where the only acceptable views are from those in power.

Operating in the dark corners of the federal bureaucracy, Operation Choke Point bypasses public input and the legislative process, leaving politically unpopular individuals and businesses to fend for themselves. If the Biden administration’s rule reversal is any sign, the next four years won’t be about unifying the country to “Build Back Better.”

After being choked from essential services in the economy, conservatives and right-of-center businesses will have no choice but to Build Your Own — if that’s even still tolerated or allowed. Build your own banks, build your own credit card processing companies, build your own web hosting platforms, build your own social media platforms, build your own companies, build your own media, build your own schools, and build your own country — because you’re choked from “ours.”

Of course, all this will do nothing to further the causes of bipartisanship, unity, and healing President Biden claims to desire. Capitalizing on the trend of cancel culture, a return of Operation Choke Point would devastate an already damaged country. By abusing the powers of federal regulators, Operation Choke Point 2.0 would solidify what most right-of-center Americans already know: Instead of unity, Democrats want you choked from everyday life.

Three years ago, former President Obama infamously claimed his administration “didn’t have a scandal that embarrassed us.” While it’s tempting to point to Operation Choke Point to refute this, perhaps Obama was right. With Biden sitting by Obama’s side, the Obama administration wasn’t the least bit embarrassed about using its powers to choke legal businesses from existence. Indeed, it was the entire goal and they appear poised to do it again.

U.S. Investment Funds Fuel China’s Economy to Our Peril

In part from the WSJ:

Shock waves rippled through the investment world when China halted the initial public offering of Ant, which would have been the world’s biggest. The decision was signed off by President Xi Jinping after controlling shareholder Jack Ma infuriated government leaders by criticizing government financial regulation in an October speech, The Wall Street Journal reported.

For the past several years, the retirement savings of America’s police, firefighters and teachers have increasingly found their way to private companies in China such as Ant. Anxious to meet ambitious return targets in a low-yield world, large North American pension funds have committed growing sums to both global private-equity managers active in China and managers local to China, according to pension officials and their advisers and investment reports.

This has contributed to a larger boom in Chinese deal making for U.S. institutional investors. Private-equity-backed deals of $300 million or more in China involving exclusively U.S.-based investment managers totaled nearly $13 billion between 2010 and 2019, according to Preqin data. Deal activity peaked in 2018 at $3.78 billion. For investors and investment managers world-wide in 2020, private-equity investment in internet and technology in China was $52 billion, according to consulting firm Bain & Co.

Outlook 2021: How to invest in China's equity market ...  source

***

To put a finer point on the matter:

China overtook the U.S. as the world’s top destination for new foreign direct investment last year, as the Covid-19 pandemic amplifies an eastward shift in the center of gravity of the global economy.

New investments by overseas businesses into the U.S., which for decades held the No. 1 spot, fell 49% in 2020, according to U.N. figures released Sunday, as the country struggled to curb the spread of the new coronavirus and economic output slumped.

China, long ranked No. 2, saw direct investments by foreign companies climb 4%, the United Nations Conference on Trade and Development said. Beijing used strict lockdowns to largely contain Covid-19 after the disease first emerged in a central Chinese city, and China’s gross domestic product grew even as most other major economies contracted last year.

The 2020 investment numbers underline China’s move toward the center of a global economy long dominated by the U.S.—a shift accelerated during the pandemic as China has cemented its position as the world’s factory floor and expanded its share of global trade.

While China attracted more new inflows last year, the total stock of foreign investment in the U.S. remains much larger, reflecting the decades it has spent as the most attractive location for foreign businesses looking to expand outside their home markets.

Foreign investment in the U.S. peaked in 2016 at $472 billion, when foreign investment in China was $134 billion. Since then, investment in China has continued to rise, while in the U.S. it has fallen each year since 2017.

The Trump administration encouraged American companies to leave China and re-establish operations in the U.S. It also put Chinese investors on notice that acquisitions in the U.S. would face new scrutiny on national security grounds—cooling Chinese interest in American deal making.

In 2020, the Washington Post reported:

The federal retirement fund is about to invest in China. Some former U.S. military leaders object.

National security adviser Gen. James Jones watches as President Barack Obama and South Korean President Lee Myung-Bak hold a joint press availability in the Rose Garden at the White House in 2009.

The retirement savings program for federal and military personnel is preparing to more than double the number of countries represented in its investment fund that tracks international stock markets.

One of the countries to be added is China — and that’s a problem for some people.

Eight former senior military leaders have issued an open letter seeking to prevent the change, which is set to take effect in the second half of this year. The letter has rekindled a controversy that has flared several times since the Thrift Savings Plan first committed to broadening its international stock fund, called the I Fund.

The result, the letter said, will be that a portion of money in the fund will be invested in Chinese companies including “weapons manufacturers, U.S.-sanctioned entities and other malevolent enterprises of the Chinese Communist Party.”

“It is especially intolerable to those of us who have proudly served the Nation in uniform that our retirement investments will help its enemies threaten our comrades-in-arms and the country we love,” said the letter, whose signers include two former White House national security advisers, retired Commandant of the Marine Corps Gen. James L. Jones and retired Navy Vice Adm. John M. Poindexter.

The letter was released in coordination with the Committee on the Present Danger: China, which defines its mission as “to educate and inform American citizens and policymakers about the existential threats presented from the Peoples Republic of China under the misrule of the Chinese Communist Party.” The group, a successor to similarly named Cold War-era organizations, was reconstituted last year by Stephen K. Bannon, former chief strategist to President Trump, and others who hold hawkish views on China.

The letter was meant to draw the attention of current military leaders, Trump, Congress and TSP investors, said Frank Gaffney Jr., vice chairman of the group, in a phone interview.

 

WHO Reports other Possible Diseased Animals and Covid

Per the WSJ in part: World Health Organization investigators are honing their search for animals that could have spread the new coronavirus to humans, identifying two—ferret badgers and rabbits—that can carry the virus and were sold at a Chinese market where many early cases emerged.

Members of a WHO team probing the pandemic’s origins say further investigation is needed into suppliers of those and other animals at the market, some of which came from a region of China near its Southeast Asian borders where the closest known relatives of the virus have been found in bats.

Team members say they have yet to establish all the creatures sold, legally or illegally, live or dead, at the market in the Chinese city of Wuhan that was tied to the first known cluster of cases in December 2019.

China’s National Health Commission and foreign ministry declined to comment.

The WHO team is juggling multiple competing hypotheses and still isn’t sure if the virus first jumped from animals to humans at the market or if it was circulating elsewhere first.

***

Has anyone asked what wildlife China exports to the United States? Hello investigative journalists, where are you? What would Customs and Border Patrol have to report on this matter? They do the inspections or should when not chasing illegal migrants coming across our Southern border or working with ICE to track down criminal aliens.

Looking a little deeper:

Wild products are regarded as superior to farm-raised, and the legal market simply makes it easier to launder poached animal products.

During a recent EIA investigation in China, undercover agents spoke with three different ivory traders who all said that at least 90 percent of what they trade legally is poached, said Thornton. A common method of feeding illegal products into the market is reusing and counterfeiting government-issued permits. Meanwhile, about 96 African elephants are killed each day for their ivory, a rate that could wipe them out within a decade.

China is the largest market for illegal wildlife products – and the market continues to grow. “Wildlife species that are bred in captivity for commercial purposes make some products widely available, which drives up consumer demand and increases poaching in the wild,” said Sharon Guynup, an environmental journalist and Wilson Center public policy fellow.

Reducing Demand, Stopping Trade

To reduce consumer demand in China, the non-profit International Fund for Animal Welfare (IFAW) has run several innovative outreach campaigns, said Grace Ge Gabriel, the regional director of IFAW’s Asia chapter.

In one campaign, Chinese pop stars, athletes, TV celebrities, and CEOs denounced buying wildlife products in a series of public service announcements and ads that were posted on billboards, buses, in airports, and other public places. Another initiative targeted the belief that ivory comes from elephant teeth and the extraction didn’t kill them. An IFAW survey found that in 2007, 70 percent of Chinese people didn’t know that elephants died for the ivory trade. Three years into a campaign to change this misconception, they found that of the 44 percent of people who had bought ivory in the past year, only seven percent said they would do so again.

More detail here.

Humm, it is quite the business it seems.  China Animal Exports to United States in 2018 was more than $2 million.

In 2018, the top partner countries to which China Exports Animal include Hong Kong, China, Japan, United States, Korea among others. Details here.

One must also ask what other countries trade animals with China that also partner with the United States that put health of humans at risk?

Last April, Fox News at least touched on the matter.

pangolin

China is offering tax incentives to wild animal exports despite banning their sale and consumption within the country amid fears that the practice was responsible for the global COVID-19 pandemic, according to a Sunday report.

SMALL-TOOTHED FERRET-BADGER LIFE EXPECTANCY

Although no consensus has been reached on the virus’ origins, multiple studies have pointed to so-called “wet markets” in the southeastern Chinese city of Wuhan, where wild animals were bought and sold for consumption.

COVID-19 is one of a “family” of coronaviruses commonly found in bats. It is suspected to have passed through a mammal, perhaps pangolins – the most-trafficked animal on the planet – before jumping to humans.

At these wet markets, live, wild-caught animals, farm-raised wild species and livestock frequently intermingle in unsanitary conditions that are highly stressful for the animals – circumstances that are ripe for infection and spillover.

In February, China’s government banned the sale and consumption of wild animals, saying that its “potential risk to public health has aroused wide public concern.”

But within a few weeks, the country’s Ministry of Finance and tax authority announced it would offer tax incentives to the export of wild animal products, The Wall Street Journal reported, citing government records.

Biden Ends Remain in Mexico, 25,000 Migrants Coming to U.S.

The plan offers one of the fastest pathways to citizenship of any proposed measure in recent years, it does so without offering any enhanced border security, which past immigration negotiations have used as a way to win Republican votes. Without enhanced security, it faces tough odds in a closely divided Congress.

The migrants are first in line to receive the Covid vaccine and the Biden immigration plan has no real chance to pass but in a comprehensive form but the president’s Executive Orders on immigration are forcing other other measures. ICE is not prepared and neither is Border Patrol. Further, schools, the medical systems along with housing, transportation, general employment are not prepared either. So, big taxpayer money will go to refugee resettlement along with free legal assistance to the migrant population. The plan includes $4 billion spread over four years to try to boost economic development and tackle corruption in Latin American countries.

Joe Biden's immigration reform plans must address enforcement

 

While the number of 11 million illegals has been broadcasted for years, that is hardly the real number. No one really knows how many are here, but various estimates from studies and agency reviews report the real number is closer to 20 million and could be as high as 30 million.

Meanwhile, there is no foreign policy discussions or plans to solve the issues in the failing countries such as Honduras, El Salvador, Mexico or Guatemala to list a few, just throwing money at those countries.

Biden's work cut out for him in plan to undo Trump ...

 

The first real mission is to challenge the exact number of how many illegals are in the United States and what the cost will be to taxpayers before any immigration legislation can move through Congress.

Biden’s plan includes the following:

  • An 8 year pathway to citizenship
  • Immediate green cards for agriculture workers
  • Green cards for Deferred Action for Childhood Arrivals (DACA)
  • No additional money for Border Patrol
  • $ billion over 4 years to confront corruption and foster prosperity (whatever that is)
  • Three 3 years to apply for citizenship
  • Re-unify children separated from parents (about 400 and most entered with mules and not parents as proven by DNA)
  • Reduce the time for citizenship from 13 years to 8 years.
  • For domestic arrests of illegals for criminal activity will require a phone call to Washington to get approval before the arrest.
  • Green cards for family members, how far within the family unit is unclear.
  • Changing word use including no more applying ‘alien’.
  • No consideration for visa over-stays or for E-Verify.
  • Increase diversity visas.

The Biden White House has posted a Immigration Bill Fact sheet

In part it includes:

  • Promote immigrant and refugee integration and citizenship. The bill provides new funding to state and local governments, private organizations, educational institutions, community-based organizations, and not-for-profit organizations to expand programs to promote integration and inclusion, increase English-language instruction, and provide assistance to individuals seeking to become citizens.
  • Grow our economy. This bill clears employment-based visa backlogs, recaptures unused visas, reduces lengthy wait times, and eliminates per-country visa caps. The bill makes it easier for graduates of U.S. universities with advanced STEM degrees to stay in the United States; improves access to green cards for workers in lower-wage sectors; and eliminates other unnecessary hurdles for employment-based green cards. The bill provides dependents of H-1B visa holders work authorization, and children are prevented from “aging out” of the system. The bill also creates a pilot program to stimulate regional economic development, gives DHS the authority to adjust green cards based on macroeconomic conditions, and incentivizes higher wages for non-immigrant, high-skilled visas to prevent unfair competition with American workers.

Grow the economy? Overload schools where many of them are not open?

  • Manage the border and protect border communities.  The bill provides funding for training and continuing education to promote agent and officer safety and professionalism. It also creates a Border Community Stakeholder Advisory Committee, provides more special agents at the DHS Office of Professional Responsibility to investigate criminal and administrative misconduct, and requires the issuance of department-wide policies governing the use of force. The bill directs the Government Accountability Office (GAO) to study the impact of DHS’s authority to waive environmental and state and federal laws to expedite the construction of barriers and roads near U.S. borders and provides for additional rescue beacons to prevent needless deaths along the border. The bill authorizes and provides funding for DHS, in coordination with the Department of Health and Human Services (HHS) and nongovernmental experts, to develop guidelines and protocols for standards of care for individuals, families, and children in CBP custody.

Manage Border Patrol? The real brain trust is already in the Border Patrol. Has President Joe even visited the border?