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    Why is so little known about the 1930s coup attempt against FDR? | Sally Denton

    Why is so little known about the 1930s coup attempt against FDR?Sally DentonBusiness leaders like JP Morgan and Irénée du Pont were accused by a retired major general of plotting to install a fascist dictator Donald Trump’s elaborate plot to overthrow the democratically elected president was neither impulsive nor uncoordinated, but straight out of the playbook of another American coup attempt – the 1933 “Wall Street putsch” against newly elected Franklin Delano Roosevelt.America had hit rock bottom, beginning with the stock market crash three years earlier. Unemployment was at 16 million and rising. Farm foreclosures exceeded half a million. More than five thousand banks had failed, and hundreds of thousands of families had lost their homes. Financial capitalists had bilked millions of customers and rigged the market. There were no government safety nets – no unemployment insurance, minimum wage, social security or Medicare.Many are disillusioned with American democracy. Can Joe Biden win them over? | Francine ProseRead moreEconomic despair gave rise to panic and unrest, and political firebrands and white supremacists eagerly fanned the paranoia of socialism, global conspiracies and threats from within the country. Populists Huey Long and Father Charles Coughlin attacked FDR, spewing vitriolic anti-Jewish, pro-fascist refrains and brandishing the “America first” slogan coined by media magnate William Randolph Hearst.On 4 March 1933, more than 100,000 people had gathered on the east side of the US Capitol for Roosevelt’s inauguration. The atmosphere was slate gray and ominous, the sky suggesting a calm before the storm. That morning, rioting was expected in cities throughout the nation, prompting predictions of a violent revolution. Army machine guns and sharpshooters were placed at strategic locations along the route. Not since the civil war had Washington been so fortified, with armed police guarding federal buildings.FDR thought government in a civilized society had an obligation to abolish poverty, reduce unemployment, and redistribute wealth. Roosevelt’s bold New Deal experiments inflamed the upper class, provoking a backlash from the nation’s most powerful bankers, industrialists and Wall Street brokers, who thought the policy was not only radical but revolutionary. Worried about losing their personal fortunes to runaway government spending, this fertile field of loathing led to the “traitor to his class” epithet for FDR. “What that fellow Roosevelt needs is a 38-caliber revolver right at the back of his head,” a respectable citizen said at a Washington dinner party.In a climate of conspiracies and intrigues, and against the backdrop of charismatic dictators in the world such as Hitler and Mussolini, the sparks of anti-Rooseveltism ignited into full-fledged hatred. Many American intellectuals and business leaders saw nazism and fascism as viable models for the US. The rise of Hitler and the explosion of the Nazi revolution, which frightened many European nations, struck a chord with prominent American elites and antisemites such as Charles Lindbergh and Henry Ford. Hitler’s elite Brownshirts – a mass body of party storm troopers separate from the 100,000-man German army – was a stark symbol to the powerless American masses. Mussolini’s Blackshirts – the military arm of his organization made up of 200,000 soldiers – were a potent image of strength to a nation that felt emasculated.A divided country and FDR’s emboldened powerful enemies made the plot to overthrow him seem plausible. With restless uncertainty, volatile protests and ominous threats, America’s right wing was inspired to form its own paramilitary organizations. Militias sprung up throughout the land, their self-described “patriots” chanting: “This is despotism! This is tyranny!”Today’s Proud Boys and Oath Keepers have nothing on their extremist forbears. In 1933, a diehard core of conservative veterans formed the Khaki Shirts in Philadelphia and recruited pro-Mussolini immigrants. The Silver Shirts was an apocalyptic Christian militia patterned on the notoriously racist Texas Rangers that operated in 46 states and stockpiled weapons.The Gray Shirts of New York organized to remove “Communist college professors” from the nation’s education system, and the Tennessee-based White Shirts wore a Crusader cross and agitated for the takeover of Washington. JP Morgan Jr, one of the nation’s richest men, had secured a $100m loan to Mussolini’s government. He defiantly refused to pay income tax and implored his peers to join him in undermining FDR.So, when retired US Marine Corps Maj Gen Smedley Darlington Butler claimed he was recruited by a group of Wall Street financiers to lead a fascist coup against FDR and the US government in the summer of 1933, Washington took him seriously. Butler, a Quaker, and first world war hero dubbed the Maverick Marine, was a soldier’s soldier who was idolized by veterans – which represented a huge and powerful voting bloc in America. Famous for his daring exploits in China and Central America, Butler’s reputation was impeccable. He got rousing ovations when he claimed that during his 33 years in the marines: “I spent most of my time being a high-class muscle man for big business, for Wall Street and for bankers. In short, I was a racketeer for capitalism.”Butler later testified before Congress that a bond-broker and American Legion member named Gerald MacGuire approached him with the plan. MacGuire told him the coup was backed by a group called the American Liberty League, a group of business leaders which formed in response to FDR’s victory, and whose mission it was to teach government “the necessity of respect for the rights of persons and property”. Members included JP Morgan, Jr, Irénée du Pont, Robert Sterling Clark of the Singer sewing machine fortune, and the chief executives of General Motors, Birds Eye and General Foods.The putsch called for him to lead a massive army of veterans – funded by $30m from Wall Street titans and with weapons supplied by Remington Arms – to march on Washington, oust Roosevelt and the entire line of succession, and establish a fascist dictatorship backed by a private army of 500,000 former soldiers.As MacGuire laid it out to Butler, the coup was instigated after FDR eliminated the gold standard in April 1933, which threatened the country’s wealthiest men who thought if American currency wasn’t backed by gold, rising inflation would diminish their fortunes. He claimed the coup was sponsored by a group who controlled $40bn in assets – about $800bn today – and who had $300m available to support the coup and pay the veterans. The plotters had men, guns and money – the three elements that make for successful wars and revolutions. Butler referred to them as “the royal family of financiers” that had controlled the American Legion since its formation in 1919. He felt the Legion was a militaristic political force, notorious for its antisemitism and reactionary policies against labor unions and civil rights, that manipulated veterans.The planned coup was thwarted when Butler reported it to J Edgar Hoover at the FBI, who reported it to FDR. How seriously the “Wall Street putsch” endangered the Roosevelt presidency remains unknown, with the national press at the time mocking it as a “gigantic hoax” and historians like Arthur M Schlesinger Jr surmising “the gap between contemplation and execution was considerable” and that democracy was not in real danger. Still, there is much evidence that the nation’s wealthiest men – Republicans and Democrats alike – were so threatened by FDR’s policies that they conspired with antigovernment paramilitarism to stage a coup.The final report by the congressional committee tasked with investigating the allegations, delivered in February 1935, concluded: “[The committee] received evidence showing that certain persons had made an attempt to establish a fascist organization in this country”, adding “There is no question that these attempts were discussed, were planned, and might have been placed in execution when and if the financial backers deemed it expedient.”As Congressman John McCormack who headed the congressional investigation put it: “If General Butler had not been the patriot he was, and if they had been able to maintain secrecy, the plot certainly might very well have succeeded … When times are desperate and people are frustrated, anything could happen.”There is still much that is not known about the coup attempt. Butler demanded to know why the names of the country’s richest men were removed from the final version of the committee’s report. “Like most committees, it has slaughtered the little and allowed the big to escape,” Butler said in a Philadelphia radio interview in 1935. “The big shots weren’t even called to testify. They were all mentioned in the testimony. Why was all mention of these names suppressed from this testimony?”While details of the conspiracy are still matters of historical debate, journalists and historians, including the BBC’s Mike Thomson and John Buchanan of the US, later concluded that FDR struck a deal with the plotters, allowing them to avoid treason charges – and possible execution – if Wall Street backed off its opposition to the New Deal. “Roosevelt should have pushed it all through and then welshed on his agreement and prosecuted them,” presidential biographer Sidney Blumenthal recently said.What might all of this portend for Americans today, as President Biden follows in FDR’s New Deal footsteps while democratic socialist Bernie Sanders also rises in popularity and influence? In 1933, rather than inflame a quavering nation, FDR calmly urged Americans to unite to overcome fear, banish apathy and restore their confidence in the country’s future. Now, 90 years later, a year on from Trump’s own coup attempt, Biden’s tone was more alarming, sounding a clarion call for Americans to save democracy itself, to make sure such an attack “never, never happens again”.If the plotters had been held accountable in the 1930s, the forces behind the 6 January coup attempt might never have flourished into the next century.
    Sally Denton is the author of The Plots Against the President: FDR, a Nation in Crisis, and the Rise of the American Right. Her forthcoming book is The Colony: Faith and Blood in a Promised Land
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    The US jobs report was a warning sign – even before the Omicron surge | Robert Reich

    The US jobs report was a warning sign – even before the Omicron surgeRobert ReichThe Fed wants to raise interest rates and coronavirus support programs are ending. Millions of families stand to suffer Friday’s jobs report from the Department of Labor was a warning sign about the US economy. It should cause widespread concern about the Fed’s plans to raise interest rates to control inflation. And it should cause policymakers to rethink ending government supports such as extended unemployment insurance and the child tax credit. These will soon be needed to keep millions of families afloat.US workforce grows by just 199,000 in disappointing DecemberRead moreEmployers added only 199,000 jobs in December. That’s the fewest new jobs added in any month last year. In November, employers added 249,000. The average for 2021 was 537,000 jobs per month. Note also that the December survey was done in mid-December, before the latest surge in the Omicron variant of Covid caused millions of people to stay home.But the Fed is focused on the fact that average hourly wages climbed 4.7% over the year. Central bankers believe those wage increases have been pushing up prices. They also believe the US is nearing “full employment” – the maximum rate of employment possible without igniting even more inflation.As a result, the Fed is about to prescribe the wrong medicine. It’s going to raise interest rates to slow the economy – even though millions of former workers have yet to return to the job market and even though job growth is slowing sharply. Higher interest rates will cause more job losses. Slowing the economy will make it harder for workers to get real wage increases. And it will put millions of Americans at risk.The Fed has it backwards. Wage increases have not caused prices to rise. Price increases have caused real wages (what wages can actually purchase) to fall. Prices are increasing at the rate of 6.8% annually but wages are growing only between 3-4%.The most important cause of inflation is corporate power to raise prices.Yes, supply bottlenecks have caused the costs of some components and materials to rise. But large corporations have been using these rising costs to justify increasing their own prices when there’s no reason for them to do so.Corporate profits are at a record high. If corporations faced tough competition, they would not pass those wage increases on to customers in the form of higher prices. They’d absorb them and cut their profits.But they don’t have to do this because most industries are now oligopolies composed of a handful of major producers that coordinate price increases.Yes, employers have felt compelled to raise nominal wages to keep and attract workers. But that’s only because employers cannot find and keep workers at the lower nominal wages they’d been offering. They would have no problem finding and retaining workers if they raised wages in real terms – that is, over the rate of inflation they themselves are creating.Astonishingly, some lawmakers and economists continue to worry that the government is contributing to inflation by providing too much help to working people. A few, including some Democrats like Joe Manchin and Kyrsten Sinema, are unwilling to support Biden’s Build Back Better package because they fear additional government spending will fuel inflation.Joe Biden needs to stand up and fight Manchin like our lives depend on it | Daniel SherrellRead moreHere again, the reality is exactly the opposite. The economy is in imminent danger of slowing, as the December job numbers (collected before the Omicron surge) reveal.Many Americans will soon need additional help since they can no longer count on extra unemployment benefits, stimulus payments or additional child tax credits. This is hardly the time to put on the fiscal brakes.Policymakers at the Fed and in Congress continue to disregard the elephant in the room: the power of large corporations to raise prices. As a result, they’re on the way to hurting the people who have been taking it on the chin for decades – average working people.
    Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
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    British Gas owner appoints Amber Rudd as a director

    Former minister Amber Rudd – who as energy secretary oversaw the development of the energy price cap – is joining the board of British Gas owner Centrica, just as the government is facing pressure to change the cap.Ms Rudd, also a former home secretary, was a high-profile opponent of Brexit before the referendum, warning during the campaign that electricity costs could soar if the UK quit the EU single energy market.She will become a non-executive director of Centrica just as energy companies are seeking to have the price cap for consumers raised so they can pass on more of the wholesale price rises in people’s bills.They want the government to remove environmental taxes from energy bills and suspend VAT.Average annual household bills are forecast to shoot up by around 56 per cent, to £2,000, in April when the price cap is recalculated.Scott Wheway, Centrica chairman, said: “As secretary of state for energy and climate change, Amber was the driving force in the UK’s participation in the Paris climate change agreement, the first legally binding global commitment to reduce national carbon emissions.”In 2016, Ms Rudd warned of “a massive electric shock”, saying British bills would soar by the equivalent of around £1.5m a day, and giving Russian president Vladimir Putin more influence over Europe.She also backed plans to keep Britain’s oldest nuclear power plants generating electricity for up to seven years longer than planned.Centrica’s chief executive, Chris O’Shea, said the company was not interested in receiving a government bailout to help it reduce the effect of soaring energy bills on consumers.Ms Rudd’s other private-sector roles include senior adviser to cybersecurity firm Darktrace, adviser at public relations firm Teneo and senior adviser at Finsbury Glover Hering, founded by her brother, Roland Rudd. More

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    Justice in the US Is an Art Form

    On any given day, US media will offer an abundance of reports on the sometimes strange workings of its justice system. This first week of January has proved to be rich in examples, with the high-profile cases of Ghislaine Maxwell and Elizabeth Holmes complemented by a host of stories about smaller cases over the antics of local judges or the ambiguity of legislation in particular states.

    The ultimate effect of these stories may appear to justify the remark made by Mr. Bumble, in Charles Dickens’ “Oliver Twist,” who cited the proverbial phrase, “the law is an ass.” Dickens painted Bumble as an appalling hypocrite and the hapless husband of a tyrannical wife. When told that “the law supposes that your wife acts under your direction,” Bumble correctly identifies the gap between the principles expressed in the law and reality. Reacting to the supposed “suppositions” of the law, Bumble wishes “that his eye may be opened by experience — by experience.”

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    In this comic passage, Dickens identified one of the central problems of any system of law, the friction created when suppositions concerning human behavior meet the facts of actual human experience. In most people’s minds, the notion of equality before the law requires that the letter of the law be applied uniformly to everyone, regardless of circumstance. But justice requires two things not contained in the law. Application of the law should take into account variable circumstances. But it should also mobilize the human ability to treat language — the wording of the law — as the not quite reliable artifact all language tends to be. The latter seems to represent a formidable challenge.

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    A New York Times article with the title, “Language Mistake in Georgia Death Penalty Law Creates a Daunting Hurdle” exposes how the careless wording of a Georgia law has inverted its intended logic. At one point it quotes a pearl of wisdom from 2013 uttered by future Supreme Court Justice Brett Kavanaugh. “It is essential,” Kavanaugh opined, “that we follow both the words and the music of Supreme Court opinions.”

    Today’s Daily Devil’s Dictionary definition:

    Music:

    1. A sublime art form practiced in all human cultures that derives from the ability to modulate the pitch, rhythm and sympathetic resonance of sounds produced by both the human voice and the skillful manipulation of a wide variety of physical objects

    2. A useful metaphor that consists of using the art form’s absence of propositional content to make irresponsible assertions sound as if they reflect deep and serious reasoning

    Contextual Note

    Perhaps Kavanaugh imagines the US criminal justice system as something akin to the pre-Copernican universe in which the sun was believed to revolve around the Earth and where, at the summit of the heavens, one could hear the celestial music of the spheres. That is a far cry from the more accurate description of the law’s workings by Mr. Bumble, who wished the law might descend from its principled heights and open its eyes to deal with human experience.

    The verdict in the trial of Theranos founder Elizabeth Holmes confirmed the spectacular fall of a one-time darling of the techno-financial-political establishment and youthful billionaire. It also illustrates that while Kavanaugh’s imaginary legal music didn’t play much of a role in determining the verdict, a certain form of cultural mythology figured prominently.

    Under the headline, “EXCLUSIVE: Juror speaks out after convicting Elizabeth Holmes,” ABC News reports on how the jury’s deliberation reached a verdict that ended up blaming Holmes for bilking the millionaires and billionaires who invested in her company but found her innocent of conning a gullible public into purchasing a fraudulent product.

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    One of the jurors, Wayne Kaatz, described by ABC News as “a daytime Emmy-award-winning TV writer,” observed a phenomenon that any author of fiction and media professional would be expected to notice. “It’s tough,” Kaatz explained, “to convict somebody, especially somebody so likable, with such a positive dream.” He insisted that the jury “respected Elizabeth’s belief in her technology, in her dream.” He added that in their mind, Holmes “still believes in it, and we still believe she believes in it.” In US culture, believing in a “positive dream” is in itself an act of moral virtue. Believing in those whom you believe is nearly as good.

    Historical Note

    The idea of the American dream was first promoted by the businessman and historian James Truslow Adams. In his best-selling 1931 book “Epic of America,” he described it as the “dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.” Later commentators, according to music historian Nicholas Tawa, “would claim that the American Dream was mostly the quest for financial betterment and the accumulation of bigger and better material goods.” Truslow launched the phrase describing his “positive dream” just about the time Edward Bernays, the godfather of public relations, was consolidating the ideology that would underpin the growth of the consumer society in subsequent decades.

    Martin Luther King cleverly exploited the idea of the American dream in his famous “I have a dream” speech. Instead of putting it in a consumerist framework, Reverend King framed the black American’s dream in terms of future justice. The justice-inspired dream has consistently challenged Truslow’s consumerist version aggressively promoted by Bernays and the powerful agencies of Madison Avenue.

    In other words, even within the US justice system, it isn’t King’s dream of justice but Truslow’s consumerist model that dominates, unconsciously orientating the average American’s perception of the world. The vaunted personal belief in one’s money-making dream (and scheme) typically contains some wildly positive outcome for the world.

    In the case of Elizabeth Holmes, what the jury called a “positive dream” was the promise of an instantaneous deciphering of every citizen’s state of health thanks to a drop of blood produced with a pinprick. For the incomparably successful Elon Musk, it’s the return of the planet to ecological health thanks to expensive electric cars. Or, alternatively, the colonization of Mars when the emerging truth about the failure of electric cars to save the Earth offers humanity no other choice than to escape to another planet.

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    These generously optimistic beliefs held by brave entrepreneurs (funded by equally brave billionaires) may be seen to justify lying and other forms of skulduggery. After all, if you have a great idea and don’t accept to play hardball by aggressively promoting the dream you are intent on turning into reality, you will fail and return to the dustheap from which you came: the cohort of anonymous losers. The jury admired Holmes for trying, even though the effort required some serious lying to a gullible public. 

    In contrast, the jury had no trouble finding Holmes guilty of the much more serious crime of pulling the wool over the eyes of America’s nobility, the wealthy elite who agreed to back her dream with their cash. In a guest article for The New York Times, Vanity Fair’s Bethany McLean admits to hoping that justice would be served with the opposite verdict. She wanted Holmes “convicted on the charges of lying to patients but found not guilty of the charges that she defrauded investors.” McLean believes that they “should have done the homework that others who refused to give Theranos money did.”

    The A-list investors and political celebrities who backed Holmes’ dream had the means to do due diligence but, charmed by the music of the dream, didn’t bother. Worse, the confidence projected by such prestigious investors — including former Education Secretary Betsy DeVos, Henry Kissinger, Oracle’s Larry Ellison, James Mattis (Donald Trump’s future defense secretary), Rupert Murdoch and the Walton family — gave added credibility to the lies Theranos’ patients were subjected to.

    Holmes is now awaiting sentencing. She will probably serve significant time in prison, though that may be attenuated and her time in prison reduced thanks to the kind of prevailing sympathy that exists for those who believe in their dream (especially young white females). That sympathy may have been a factor in the lenient sentence given to sex-trafficker Jeffrey Epstein in 2008, though no jury was involved. Perhaps that’s just one feature of the music of the law that Justice Kavanaugh believes to be real, always ready to produce its seductive strains, at least in those moments when it isn’t braying like an ass.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Energy crisis: Britain leans on gas shipments from Qatar to ease supply squeeze

    Britain has tapped Qatar as an informal natural gas supplier of last resort in the face of soaring gas prices, The Independent has learned, after foreign secretary Liz Truss visited the Gulf nation in October.Pressure to ensure gas supply has mounted as prices have risen at record rates across the EU and UK. Pandemic production disruption, lack of UK storage capacity and slimmer stores in major EU economies have left many countries scrambling to top up supplies of natural gas this winter.Energy suppliers this week described soaring gas prices as a “national crisis” and industry estimates suggest that consumers could face a doubling of energy bills when the price cap is reviewed in April. The business secretary Kwasi Kwarteng, along with the Office of Gas and Electricity Markets (Ofgem) and energy suppliers, was set to continue crisis talks this week after failing to reach a solution.Two sources familiar with the talks have suggested nothing short of a radical intervention – such as scrapping VAT or green levies – will be enough to mitigate the hit to households. The Europe-wide energy crunch has seen Serbia curb supplies to consumers, and last week, Kosovo’s distribution system operator announced it would introduce rolling two-hour blackouts to conserve energy from Thursday. Major European economies France and Germany are also grappling with energy price spikes while the UK faces a twin problem of cost and safeguarding supply. Against a backdrop of diminished capacity to store gas domestically, the UK brokered an informal arrangement with Qatar to keep gas deliveries flowing, as it prepares for a full strategic partnership agreement in 2022.The government has denied that Qatar is performing a “formal” role as a supplier of last resort. But sources familiar with shipments into the Isle of Grain terminal near London, and the QatarEnergy co-owned South Hook LNG terminal in Wales, believe there has been an increase in shipments since MsTruss visited the gulf state for talks in October.The sources say these shipments are in addition to those agreed by contracts in place earlier in 2021.This effort is aimed at reducing dependence on Norway and the US. “It avoids putting our eggs in too few baskets,” according to a source with knowledge of the Qatar talks. Existing commercial relationships between Qatar and UK-based buyers, such as Centrica, make it easier for the government to encourage greater supply without saying that it has directly requested additional shipments, The Independent understands.Mr Kwarteng is also understood to have been party to some discussions with Qatari counterparts in recent months. A government spokesperson said: “Qatar continues to be a supplier of liquefied natural gas to UK buyers but is not a formal supplier of last resort and we have not requested or secured any additional shipments from the Qatari government.” Britain’s gas supply remains “absolutely secure” with enough delivery capacity to meet demand, the spokesperson insisted.Centrica declined to comment, while the government of Qatar did not respond to a request for comment. More

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    Crisps, PS5s and petrol: The year the UK ran out of everything

    Boris Johnson hailed 19 July 2021 as “Freedom Day”, easing the last of the social restrictions imposed on the British public since the onset of the coronavirus pandemic 16 months earlier and drawing a line under some of the darkest days in our recent history.The vaccine rollout had been a triumph, Covid-19 appeared to be on the ropes, Gareth Southgate’s boys had done us proud at Euro 2020 and a summer heatwave had descended. What could go wrong?That question was answered just three days later, when eerie photographs of barren supermarket shelves began to appear on social media, forcing both the stores themselves and government ministers to urge shoppers not to engage in panic-buying in response to the apparent shortage of everyday goods.The phenomenon felt like a return to the bad old days of March 2020 and the very beginning of the pandemic, when frantic consumers raced to gather up as many six-packs of toilet rolls and bottles of hand sanitiser as they could carry to ensure plentiful supplies at home should society indeed collapse in the manner of a Netflix zombie movie.This fresh instalment of hysteria was blamed initially on a “pingdemic”, an explosion of notifications from the NHS Test and Trace app advising employees to self-isolate for 10 days after coming into contact with someone who has tested positive for the virus and therein causing chaos at workplaces across the country.With no exceptions made and official policy still one of “contact isolation” rather than “contact testing”, the UK economy was apparently being hard-hit by staff absences in response to the smartphone-issued quarantine orders, a problem affecting every sector, from retail and hospitality to transport, tourism and manufacturing, causing shifts to be rescheduled and services to run late or be cancelled altogether.But supermarket aisles left empty for the want of stackers or stock would prove to be merely the most immediately visible symptom of a range of issues that had been festering and were beginning to surface.Given the highly intricate and interconnected nature of the global supply chain, in which outsourcing is common and a single product is seldom manufactured, assembled, packaged and shipped by one outfit alone, the chaos being wrought by Covid was not simply confined to Britain but playing out across the map, with sickness absences at factories anywhere potentially leading to bottlenecks and delays everywhere.The NHS app was retooled to be less sensitive on 2 August, meaning fewer employees were unable to work at home, but still the problems persisted, prompting the pundits to look a little deeper for the root cause.An underlying shortage of HGV drivers was also clearly playing a part, a long-term headache already exacerbated by Brexit and worsened by the complications associated with the pandemic.The UK haulage industry estimated that Britain had lost 25,000 European lorry drivers in the wake of the EU membership referendum as they were forced to return to their countries of origin by tighter visa rules and the loss of free movement of labour principles.The three successive national lockdowns imposed in response to the Covid outbreak meanwhile meant that as many as 40,000 applicants to the DVLA in Swansea hoping to take a lorry driver’s test had been unable to do so, their forms piled high and gathering dust.Throw in an ageing workforce and British hauliers were facing a shortfall of as many as 100,000 drivers.Iceland’s managing director Richard Walker told BBC Radio 4’s Today programme in late August that the lack of drivers had to be addressed by the government and was “impacting the food supply chain on a daily basis”.“We’ve had deliveries cancelled for the first time since the pandemic began, about 30-40 deliveries a day,” he said. “Things like bread, fast-moving lines, are being cancelled in about 100 stores a day.”Asked whether he blamed Brexit for the situation, Mr Walker did not hesitate to say yes, branding Britain’s decision to leave the EU “a self-inflicted wound”.His sentiments were echoed by other supermarket bosses, members of the Shadow Cabinet and, eventually, even by transport secretary Grant Shapps and the Office of Budget Responsibility, the latter pointing to a 15 per cent fall in British trade with Europe as a contributor to the shortages.For Trades Union Congress general-secretary Frances O’Grady, the rapid growth of zero hours contracts and the “casualisation” of work through the gig economy was another key factor.“It’s not just about pay and conditions,” she said. “It’s about the business models that we have seen mushroom over the past 10 or 20 years.“Supply chains are in peril. That should be a wake-up call for all of us. The solutions are quite simple. It’s about evening up that collective bargaining power and about treating people with dignity and decency at work.”When the problems began to manifest anew in the shape of the flash fuel crisis of late September and early October, prompting drivers across the country to queue around the block for access to desolate service station forecourts, Mr Johnson’s Cabinet was forced to act.It drafted in Army drivers to ferry petrol deliveries from distribution terminals to the pumps under Operation Escalin (a Brexit emergency backup plan hurriedly retrieved from a drawer), begged retirees to get back in their cabs and offered temporary visas to European hauliers, who were, understandably, not particularly inclined to help out.That episode – propelled to an extent by some unhelpfully alarmist media coverage, centred around the inevitable shots of snaking lines of traffic – did eventually ease, but not before post-Brexit Britain had been likened to “boycotted Cuba” by Europe’s newspapers.From the disastrous disappearance of Haribo to the nightmarish prospect of a world with no Irn-Bru, Walkers Crisps or Weetabix, here is a reminder of some of the key products we ran dry of in 2021, the year we went without.HariboOne of the first victims of the HGV driver crisis was the German confectioner, who first reported supply issues on 2 July before the extent of the problem became frontpage news – a dire turn of events for Tangfastics loyalists.Trade magazine The Grocer reported that Haribo had told its wholesale and retail customers that it was “faced with several challenges throughout our supply chain including a shortage of drivers” but was “working flat out to manage the situation”. 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    New York attorney general vows Trump investigation will proceed ‘undeterred’

    New York attorney general vows Trump investigation will proceed ‘undeterred’Former president sues Letitia James on grounds of political bias in effort to halt inquiry into his business affairs

    Trump unnerved as Capitol attack investigation closes in
    The New York attorney general, Letitia James, said on Monday her investigation of Donald Trump’s business affairs would continue “undeterred”, despite Trump suing to stop it on grounds of political bias, “because no one is above the law, not even someone with the name Trump”.How Trump’s $50m golf club became $1.4m when it came time to pay taxRead moreThe New York Times first reported Trump’s lawsuit, filed in federal court in Syracuse, New York. It alleges that James, a Democrat, “is guided solely by political animus and a desire to harass, intimidate and retaliate against a private citizen who she views as a political opponent”.James is investigating whether the Trump Organization manipulated valuations of its real estate properties.In one such instance, as Trump ran for president in 2016, the Guardian reported on differing valuations of a golf club outside New York City. The headline: How Trump’s $50m golf club became $1.4m when it came time to pay tax.The Washington Post and other outlets have reported similar alleged practices at other Trump properties.Last year, investigators working for James interviewed Eric Trump, one of the former president’s sons and a Trump Organization executive. James went to court to enforce a subpoena and a judge forced the younger Trump to testify, after his lawyers canceled a deposition.In an investigation that could only result in civil charges, James recently said she would seek to question Donald Trump under oath.It is rare for law enforcement agencies to issue a civil subpoena for testimony from a person also the subject of a related criminal investigation, partly because the person could simply cite their fifth amendment right to remain silent.It is unlikely Trump’s lawyers would allow him to be deposed unless they were sure his testimony could not be used against him in a criminal case.Trump’s business and tax affairs are also the subject of a criminal investigation run by the Manhattan district attorney, Cyrus Vance, which has been in progress for more than three years. James joined that investigation in May.The Manhattan case includes a focus on whether the Trump Organization overstated the value of some real estate assets to obtain loans and tax benefits.In their lawsuit against James, who recently announced a run for governor of New York before stepping back, Trump and the Trump Organization claim the attorney general has violated their rights under the US constitution by pursuing a politically motivated investigation.Trump and the company pointed to public statements James made before she was elected as attorney general.The lawsuit also made a plainly political play of its own, echoing Trump’s language in office and on the campaign trail when it said: “Rather than diligently prosecuting actual crimes in the state of New York – which are steadily on the rise – James has instead allocated precious taxpayer resources towards a frivolous witch hunt.”Trump and the Trump Organization are seeking a court order barring the investigation from going forward.In a statement, Trump’s attorney, Alina Habba, said: “By filing this lawsuit, we intend to not only hold her accountable for her blatant constitutional violations, but to stop her bitter crusade to punish her political opponent in its tracks.”In her own statement, James said: “The Trump Organization has continually sought to delay our investigation into its business dealings and now Donald Trump and his namesake company have filed a lawsuit as an attempted collateral attack on that investigation.“To be clear, neither Mr Trump nor the Trump Organization get to dictate if and where they will answer for their actions. Our investigation will continue undeterred because no one is above the law, not even someone with the name Trump.”James also noted that in August 2020 she “filed a motion to compel the Trump Organization to provide … documents and testimony from multiple witnesses regarding several, specific Trump Organization properties and transactions.“Since then, the court has ruled in Attorney General James’ favor multiple times.”Last month, Trump’s former lawyer and fixer Michael Cohen – who served a three-year sentence for offences including campaign finance violations relating to a payoff to the porn star Stormy Daniels, who claims an affair with Trump – was asked about the prospect of Trump being indicted in the criminal investigation in Manhattan.Cohen said he was confident prosecutors could “indict Donald Trump tomorrow if they really wanted and be successful”.Asked if he was “confident you did help Donald Trump commit crimes”, Cohen told NBC: “I can assure you that Donald Trump is guilty of his own crimes. Was I involved in much of the inflation and deflation of his assets? The answer to that is yes.”In July, the longtime Trump Organization chief financial officer, Allen Weisselberg, pleaded not guilty to criminal charges in what a prosecutor in Vance’s office called a “sweeping and audacious” 15-year tax fraud.TopicsDonald TrumpUS politicsNew YorkUS taxationnewsReuse this content More

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    Government ‘not closing down businesses’ says Rishi Sunak – but no new help for firms hit by cancellations

    Rishi Sunak insisted the government was “not closing down businesses” today as he cut short a trip to California amid a growing backlash from firms demanding more state support to weather a sharp rise in Covid cases.The chancellor resisted calls for more help as businesses reported an alarming drop-off in trade in response to the rapid spread of the omicron variant. He pointed to existing measures including business rates relief, a reduced rate of VAT and around £250m available through local authorities.“My immediate priority is to make sure that money gets to those businesses as quickly as possible,” he told US broadcasters. “I appreciate that it is a difficult time for the hospitality industry, that’s why I was on the phone earlier today with various industry leaders from the hospitality space.”The chancellor brought forward his return flight from California after facing mounting criticism that he was not in the country to oversee the financial response to a rapidly deteriorating situation.Industry groups issued a desperate plea for help during crisis meetings with senior Treasury officials on Thursday, expressing frustration that the government’s increasingly bleak public health messaging has not been matched with economic assistance.The chancellor is understood to have held one-on-one talks with three senior hospitality industry figures on Thursday but no package of state help for the sector has yet been announced. More