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      Democrat Derek Tran ousts Republican rival in key California House seat

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      Democrat Derek Tran ousted Republican Michelle Steel in a southern California House district Wednesday that was specifically drawn to give Asian Americans a stronger voice on Capitol Hill.Steel said in a statement: “Like all journeys, this one is ending for a new one to begin.” When she captured the seat in 2020, Steel joined Washington state Democrat Marilyn Strickland and California Republican Young Kim as the first Korean American women elected to Congress.Tran, a lawyer and worker rights advocate and the son of Vietnamese refugees, declared victory earlier this week. He said his win “is a testament to the spirit and resilience of our community. As the son of Vietnamese refugees, I understand firsthand the journey and sacrifices many families in our district have made for a better life.”The contest is one of the last to be decided this year, with Republicans now holding 220 seats in the House, with Democrats at 214. The Associated Press has not declared a winner in California’s 13th district, where Democrat Adam Gray was leading Republican John Duarte by a couple of hundred votes.Steel held an early edge after election day, but late-counted ballots pushed Tran over the top.Steel filed a statement of candidacy on Monday with federal regulators, which would allow her to continue raising funds. It wasn’t immediately clear if she planned to seek a return to Congress.In the campaign, Tran warned of Republican threats to abortion rights. Steel opposes abortion with exceptions for rape, incest or to save the life of the pregnant woman, while not going so far as to support a federal ban. Tran also warned that Donald Trump’s return to the White House would put democracy at risk.On Capitol Hill, Steel has been outspoken in resisting tax increases and says she stands strongly with Israel in its war with Hamas. “As our greatest ally in the Middle East, the United States must always stand with Israel,” she said. She advocates for more police funding and has spotlighted her efforts on domestic violence and sexual abuse.The largest demographic in the district, which is anchored in Orange county, south-east of Los Angeles, is Asian Americans, and it includes the nation’s biggest Vietnamese community. Democrats hold a four-point registration edge.Incomplete returns showed that Steel was winning in Orange county, the bulk of the district. Tran’s winning margin came from a small slice of the district in Los Angeles county, where Democrats outnumber Republicans by nearly two to one. More

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      Republican senator introduces bill to abolish US Department of Education

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      A bill that would accomplish Donald Trump’s goal of abolishing the federal Department of Education has been introduced into the US Senate.The Republican senator Mike Rounds of South Dakota introduced the bill, called the Returning Education to Our States Act, on Thursday. If passed, the bill would see $200bn in funding and the work of the education department redistributed to other federal agencies and states.“The federal Department of Education has never educated a single student, and it’s long past time to end this bureaucratic department that causes more harm than good,” Rounds said in a statement announcing the bill.He added: “For years, I’ve worked toward removing the federal Department of Education. I’m pleased that president-elect Trump shares this vision, and I’m excited to work with him and Republican majorities in the Senate and House to make this a reality. This legislation is a roadmap to eliminating the federal Department of Education by practically rehoming these federal programs in the departments where they belong, which will be critical as we move into next year.”Major responsibilities of the Department of Education would be rerouted to other offices: the administration of federal student loans would become the responsibility of the treasury department; the Individuals with Disabilities Education Act, which enforces protections for the 7.5 million students with special needs, would fall under the Department of Health and Human Services; the Fulbright-Hays Program would be overseen by the Department of State.The bill would require a supermajority of 60 votes in the soon-to-be Republican-controlled Senate to get passed. Notably, Rounds believes he can pass the bill with 50 votes, according to the Argus Leader. That feat would happen through reconciliation, a congressional loophole which allows the enactment of legislation on taxes and spending with only a majority. Despite Rounds’s ambition, reconciliation does not look promising as Democrats and some independents who oppose eliminating the department are still in control of the Senate and White House.Rounds could reintroduced the bill next term, when Republicans take control, but it would still require 60 votes to pass the Senate.Education and policy experts have expressed their concerns should the bill pass and for what else is ahead in another Trump administration.David DeMatthews, a professor in the University of Texas’s department of educational leadership and policy, said he did not think the education department “will be abolished ultimately, but I do have a lot of fears”.Education is one subject that “really cut[s] across the political divide”, he said.“People who are Republicans who voted for Trump, they may have a child with a disability or a traumatic brain injury that is in a special program that would cost that family $50-60,000. They want their child to be in a high-quality program that’s evaluated by the state. They want rights if the state is not doing a good job, and all of that comes from the federal special education law ‘Idea’ [the Individuals with Disabilities Education Act], and all of that is monitored and enforced by the US Department of Education.”It has long been a key objective of the Republican party to abolish the Department of Education since it was launched in 1980 by then president Jimmy Carter. Within that same year, Carter’s successor, Ronald Reagan, even campaigned on eliminating the newly formed department – though that desire was quashed after Reagan’s first education secretary, Terrel Bell, penned a report that “advocated for a strong federal role to ensure students received a high-quality education”, according to ChalkBeat.skip past newsletter promotionafter newsletter promotionSince then, the department has seen a push and pull depending on the party in office. Under Democratic administrations, the department has leaned more progressive. A recent example was the Biden administration issuing new Title IX rules in April that offered more protections for LGBTQ+ students, victims of sexual misconduct and pregnant students; in July, House Republicans blocked it.In his campaign, Trump repeatedly emphasized that one of his education policies was to shutter the Department of Education and “create a new credentialing body that will be the gold standard anywhere in the world to certify teachers who embrace patriotic values support our way of life and understand that their job is not to indoctrinate children”.He has also pledged to return school choice to the states and cut federal funding for any school or program that teaches “critical race theory, gender ideology or other inappropriate racial, sexual or political content”.Shortly after winning the 2024 presidential election, Trump baselessly claimed the education department was staffed by many people who “in many cases, hate our children” and said “we want states to run the education of our children, because they’ll do a much better job of it” in a video.Earlier this month, Trump chose the former World Wrestling Entertainment executive Linda McMahon to serve as his as secretary of education, tasked with running the department he has vowed to close – a move DeMatthews calls “concerning”.“Across the board, what we’re seeing is already people in the Trump administration and some Republicans really trying to walk back some basic civil rights victories that happened in the 60s and 70s to support students with disabilities, low-income families, English learners,” DeMatthews said. “I think if the public understood it and knew about it, they wouldn’t be for taking away supports to help some of the most marginalized children in our country.” More

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      Trump picks Keith Kellogg to serve as special envoy to Ukraine and Russia

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      Donald Trump has picked Keith Kellogg to serve as a special envoy for Ukraine and Russia, a newly conceived role given the ongoing war between the two countries.Kellogg, an 80-year-old retired US army lieutenant general, would start in the role as Russia’s invasion of Ukraine continues into its third year.“Keith has led a distinguished Military and Business career, including serving in highly sensitive National Security roles in my first Administration. He was with me right from the beginning! Together, we will secure PEACE THROUGH STRENGTH, and Make America, and the World, SAFE AGAIN!” Trump said in a Truth Social post.Kellogg previously served as a national security adviser to the former vice-president Mike Pence during Trump’s first presidency. Kellogg later became acting security adviser to Trump himself after Michael Flynn resigned in 2017.As per his plan to end Russia’s war in Ukraine, Kellogg previously told Reuters that he would emphasize getting the two countries to the negotiating table.“We tell the Ukrainians: ‘You’ve got to come to the table, and if you don’t come to the table, support from the United States will dry up,’” Kellogg said in a June interview. “And you tell [Vladimir] Putin [that] he’s got to come to the table and if you don’t come to the table, then we’ll give Ukrainians everything they need to kill you in the field.”Early reactions to Kellogg’s potential confirmation have been tepid, the Hill reported.“It was a gulp – not horrible, not amazing,” said one security analyst based in Washington DC, who spoke anonymously to the publication.Oleh Shamshur, a former Ukrainian ambassador to the US, told the Hill he was pessimistic about Kellogg’s potential appointment.“As I understand, he totally accepts the logic of Trump’s ‘peace plan’ as related by [vice-president-elect JD] Vance,” said Shamshur, referring to Vance’s support of ceding Ukrainian territory to Russia and rejecting plans for Ukraine to join Nato.Luke Coffey, a senior fellow at the Hudson Institute, a conservative thinktank, noted to the New York Times in September that Vance’s plans weren’t “a realistic proposal for peace”.skip past newsletter promotionafter newsletter promotion“He offered a plan for a Russian victory,” Coffey told the Times.Trump’s upcoming presidency has prompted questions about the outcome of Russia’s war in Ukraine. He pledged to bring a quick end to the war as one of his main campaign promises, though he has not elaborated on how he will do so.Some Ukraine supporters have voiced concerns that Trump’s steps to end the war could be detrimental to the country’s security or see Ukrainian land ceded to Russia, while Ukraine’s president, Volodymyr Zelenskyy, says he is certain the war with Russia will “end sooner” than it otherwise would have once Trump takes office.Zelenskyy reportedly had a “constructive exchange” with Trump during a conversation in the aftermath of Trump’s victory the US presidential election. More

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      Will the Democrats finally realize that Big Tech is not an ally? | Zephyr Teachout

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      As Democrats think about how to counter the Trump administration, they need to accept a very simple lesson from the last eight years. Big tech and big business are part of the political opposition working on behalf of Donald Trump, not the Democrats’ allies working against Trump and Trumpism.It shouldn’t seem necessary to point out what seems to be an obvious fact. Nonetheless, there are some Democrats trying to stay close to big tech, or downplaying the importance of anti-monopoly policy when it comes to authoritarian risks. For example, a few days ago, Priorities USA, the largest Democratic party Super Pac, held a big resistance strategy session hosted by “our friends at Google”.As another example, Adam Jentleson, a political writer and a former chief of staff for US senator John Fetterman, wrote a recent piece for the New York Times that among other things criticized fighting monopolies as a “niche issue”. He argued that there’s a dichotomy between kitchen table issues and challenging corporate power, and we should focus on the former.The belief that big tech, and more broadly big business, is helpful to Democrats has already been tried – and found to be untrue.When Trump was elected in 2016, one central pillar of the Democratic resistance involved using big tech platforms as a counterweight. If you remember, the CEO of Google even joined anti-Trump protests. Google, Facebook, YouTube, Instagram and pre-Elon Musk Twitter were scolded for using technologies that enabled extremism, but instead of aggressively moving to regulate the algorithmic design, change liability rules or break them up, Democrats focused on nudging platforms on editorial policy.The assumption was they could be corralled into the “right” set of editorial practices, ones that would help defeat Trump and Maga-ism, and limit the reach of his rhetoric in the short term. This was the context in which the “misinformation and disinformation” framework was born.We use the phrases all the time now, but it is worth reflecting on how strange they are. Sometimes misinformation refers to inadvertent lies, and disinformation describes purposeful lies, but sometimes the terms encompass factually correct but misleading information, or as Barack Obama argued in 2022, the “suppression of true information” if such suppression was done for, among other things, “political gain” or “targeting those you don’t like”.Not only did these new categories infuriate those who were caught in the broad, fuzzy definitions, but they focused Democratic attention away from questions of power. The mis/disinformation framework fit part and parcel with joining with big tech as an anti-fascist alliance. “We”, the science-grounded Democrats, would successfully work hand in hand with the biggest tech companies in the world to protect America.Eight years later, the Democrats have lost the White House, House of Representatives and Senate. The big tech platforms are awash in extremist content. Big tech should not look like the ally anymore. Not only is Musk fully ensconced at the head of the power table, right next to Trump, but the CEOs of Meta, Alphabet, Apple and Amazon all reached out to Trump before the election, perhaps taking seriously his threat to put Mark Zuckerberg in jail if he opposed him, perhaps just realizing that Trump is a deregulatory juggernaut.Musk reportedly joined a recent phone call between Trump and the CEO of Google. We can anticipate dozens of such meetings at the highest levels, and strong relationships being born. And instead of repeatedly insisting that tech titans have too much power, we have spent eight years arming them with language that can be used to suppress dissent.Repeated polling has shown that voters actually hate corporate monopolies, and antitrust politics are extremely popular. I don’t want to overclaim the point – antitrust politics disappeared in America for the 30 years between 1980 and 2020, and it is fair to argue that anti-monopoly policy, especially against big tech, can use more experimentation in how we talk about it. On the substance, however, we should be very concerned.Facebook, Google and Amazon have destroyed the actual bulwark against autocratic leaders – local journalism – while cozying up to actual autocracy. They now control the digital ad industry. According to one recent research report, if they paid news organizations what they make off them by standing as a middleman between readers and writers, they would be handing over between $12bn and $14bn a year. The very journalists and news organizations we rely on for fact-finding and fact-checking are scared of being shadowbanned – Jeff Bezos’s fear of Trump being exhibit A of how that can impact editorial content.Google, thankfully, has officially been called an illegal monopolist by a court, thanks to the work of the Department of Justice under assistant attorney general Jonathan Kanter, and other antitrust cases regarding Facebook and Amazon are winding their way through the court system. But even if Google is forced to divest Chrome, which seems possible, the failure of Democrats in power to put serious tech-busting legislation to a vote now seems grotesque. It looks like we didn’t even try to stop the incoming power couple of Trump and tech.While pundits are trying to sort through the messaging lesson of how Kamala Harris lost what seemed like a winnable election, we would do well to look further back, and remember the real lessons from 2016: joining hands with big tech oligarchs is joining hands with the destruction of the Democratic party and democracy.

      Zephyr Teachout is a professor at Fordham Law School and the author of Break ’Em Up: Recovering Our Freedom from Big Ag, Big Tech, and Big Money More

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      Canada PM under pressure to stand up to Trump over tariff plan; US motorists could face higher gas prices – live

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      Other members of Canada’s parliament are calling on prime minister Justin Trudeau to ready a “war room” for the coming battle over tariffs with the United States.“The only thing a bully responds to is strength. So where is our plan to fight back?” Jagmeet Singh, leader of the New Democratic Party, asked Trudeau. “Where is the war room?”“I don’t think the idea of going to war with the United States is what anyone wants. What we will do is stand up for Canadian jobs,” Trudeau said. “Stand up for the prosperity we create when we work together.”Meanwhile, members of Canada’s liberal and conservative parties are debating ways Trudeau could promote a “Canada First” policy or work collaboratively with “our US partner.”In an election post-mortem today, top Harris campaign officials said there was little else Kamala Harris could have done to win the 2024 election.Speaking on the podcast “Pod Save America”, David Plouffe, Jen O’Malley Dillon, Quentin Fulks and Stephanie Cutter said Harris couldn’t have distanced herself further from Joe Biden because she was loyal and faced backlash over inflation that’s hurt incumbent politicians across the globe this year.“She had tremendous loyalty to President Biden,” Cutter said. “Imagine if we said, ‘Well, we would have taken this approach on the border.’ Imagine the round of stories coming out after that, of people saying, ‘Well, she never said that in the meeting.’”Plouffe added that the campaign’s internal polling never showed Harris leading president-elect Donald Trump.“We didn’t get the breaks we needed on Election Day,” he said. “I think it surprised people, because there was these public polls that came out in late September, early October, showing us with leads that we never saw.”Fulks noted that Democrats could learn from how Republicans support their own, even amid controversy.“Democrats are eating our own to a very high degree, and until that stops, we’re not going to be able to address a lot of the things that just need to be said,” he said.During a thank-you call today, Kamala Harris told small-dollar donors that they helped to raise $1.4 billion over the course of her 107-day campaign.“The outcome of the election, of this election, obviously, is not what we wanted. It is not what we worked so hard for, but I am proud of the race we ran and your role was critical — what we did in 107 days was unprecedented,” she said. “The fight that fueled our campaign, a fight for freedom and opportunity, did not end on November 5th.”Harris’s running mate, Minnesota governor Tim Walz, joined the call and urged supporters to “find the place in your community to heal both yourselves and your community.” He acknowledged feels of grief that supporters might be feeling and added, “You did everything that was asked.”Donald Trump’s team has announced that it has signed transition paperwork with the White House, which the incoming administration appeared to be dodging after failing to sign the agreement by its 1 October due date. The agreement, which directs $7.2m in federal funding to the transition, requires the incoming presidential administration to agree to an ethics pledge and cap private donations.The announcement that Trump’s team had signed the memorandum of understanding with the White House came in a press release from Trump’s chief-of-staff Susie Wiles.“After completing the selection process of his incoming Cabinet, President-elect Trump is entering the next phase of his administration’s transition by executing a Memorandum of Understanding with President Joe Biden’s White House. This engagement allows our intended Cabinet nominees to begin critical preparations, including the deployment of landing teams to every department and agency, and complete the orderly transition of power,” she said.Speaking from the White House, Joe Biden has announced a ceasefire agreement between Israel and Hezbollah.“Under the deal reached today, effective at 4am tomorrow local time, the fighting across the Lebanese-Israeli border will end,” he said. “This is designed to be a permanent cesation of hostility.”Explaining the terms of the deal, Biden said, the Lebanese army will take control of the region as Israel withdraws its forces over the next 60 days. Hezbollah will not be allowed to rebuild its infrastructure. “There will be no US troops deployed in southern Lebanon,” he said, adding that the US and France would continue to provide support to Lebanon. If Lebanon fails to abide by the terms of the agreement, Biden said, Israeli retains the right to defend itself.“Now Hamas has a choice to make,” Biden said, gesturing to the ongoing war in Gaza. “Over the coming days, the United States will make another push – with Turkey, Egypt, Qatar, Israel and others – to achieve a ceasefire in Gaza.”A day after Elon Musk claimed to have met with “senior military officers,” the Pentagon told reporters it was not aware of any meetings with Trump transition officials, the Washington Post reports.“The president-elect’s transition team has not contacted the department yet to conduct those transitions, so I’m not aware of any official meetings,” Pentagon press secretary Patrick Ryder told reporters. Donald Trump’s transition team has declined to sign paperwork that would require the incoming administration to agree to an ethics pledge and cap private donations, which has slowed the transition.Yesterday, Musk claimed to have met with “senior military officers today” in a social media post responding to a statement from Vivek Ramaswamy about government efficiency.“In a meeting with senior military officers today, they told me that it now takes longer to renovate stairs (24 months) in the Pentagon than it took to build the WHOLE Pentagon (16 months) in the 1940s!!” Musk wrote.Speaking at an emergency gathering of the Canadian parliament today, Justin Trudeau urged unity while leaders of two of the country’s largest industrial and oil-rich provinces raised concerns over US-Canada relations, Reuters reports.The premier of Ontario, the country’s industrial heartland, said Trump had good reason to be worried about border security.“Do we need to do a better job on our borders? 1,000 percent … we do have to listen to the threat of too many illegals crossing the border,” Doug Ford told reporters. “We have to squash the illegal drugs, the illegal guns.”Ford has called on Trudeau to abandon the U.S.-Canada-Mexico trade deal in favor of a bilateral agreement with the US, and called Trump’s comparison of Canada to Mexico “the most insulting thing I have ever heard”.Likewise, the premier of the oil-rich province of Alberta said yesterday that Trump had valid concerns over border security.“We are calling on the federal government to work with the incoming administration to resolve these issues immediately, thereby avoiding any unnecessary tariffs on Canadian exports to the U.S.,” Danielle Smith said in a social media post. She added, “The vast majority of Alberta’s energy exports to the U.S. are delivered through secure and safe pipelines which do not in any way contribute to these illegal activities at the border.”A federal judge has rejected Rudy Giuliani’s request to reschedule a January trial date for after Donald Trump’s inauguration. The judge has ordered Giuliani to pay two Georgia election workers $148 million for spreading falsehoods after the 2020 election. The 16 January trial had been set to determine whether Giuliani would have to relinquish assets such as a Palm Beach condo and Yankees World Series rings to pay the judgement.“My client regularly consults and deals directly with President-elect Trump on issues that are taking place as the incoming administration is afoot as well as inauguration events,” Giuliani’s attorney Joseph Cammarata said. “My client wants to exercise his political right to be there.”“The defendant’s social calendar does not constitute good cause [to delay the trial],” US District Court Judge Lewis Liman said. He did suggest that he would be open to moving the trial forward a few days.Other members of Canada’s parliament are calling on prime minister Justin Trudeau to ready a “war room” for the coming battle over tariffs with the United States.“The only thing a bully responds to is strength. So where is our plan to fight back?” Jagmeet Singh, leader of the New Democratic Party, asked Trudeau. “Where is the war room?”“I don’t think the idea of going to war with the United States is what anyone wants. What we will do is stand up for Canadian jobs,” Trudeau said. “Stand up for the prosperity we create when we work together.”Meanwhile, members of Canada’s liberal and conservative parties are debating ways Trudeau could promote a “Canada First” policy or work collaboratively with “our US partner.”Canadian prime minister Justin Trudeau is discussing the United States’ proposed tariffs with the leader of the opposition, Pierre Poilievre, before the Canadian parliament. Poilievre has criticized Trudeau, calling on him to “put Canada first” in its relations with the United States and do more to fix Canada’s “broken borders” and “liberalization of drugs”.“The prime minister’s disastrous legalization and liberalization of drugs has the Americans worried,” Poilievre said. “Where’s the plan to stop the drugs and keep our border open to trade?”Canadian prime minister Justin Trudeau is expected to speak shortly at today’s gathering of the nation’s parliament, just a day after Donald Trump threatened to levy 25% tariffs against the US’s northern neighbor.Trudeau spoke with Trump earlier today, and said “it was a good call,” adding that they “obviously talked about laying out the facts, talking about how the intense and effective connections between our two countries flow back and forth.”Donald Trump’s team is discussing pursuing direct talks with North Korean leader Kim Jong Un, hoping a fresh diplomatic push can lower the risks of armed conflict, according to two people familiar with the matter, Reuters reports.Several in Trump’s team now see a direct approach from Trump, to build on a relationship that already exists, as most likely to break the ice with Kim, years after the two traded insults and what Trump called “beautiful” letters in an unprecedented diplomatic effort during his first term in office, the people said.The policy discussions are fluid and no final decisions have been made by the president-elect, the sources said.Trump’s transition team did not respond to a request for comment.What reciprocation Kim will offer Trump is unclear. The North Koreans ignored four years of outreach by outgoing president Joe Biden to start talks with no pre-conditions, and Kim is emboldened by an expanded missile arsenal and a much closer relationship with Russia.
      We have already gone as far as we can on negotiating with the United States,” Kim said last week in a speech at a Pyongyang military exhibition, according to state media.
      During his 2017-2021 presidency, Trump held three meetings with Kim, in Singapore, Hanoi, and at the Korean border, the first time a sitting US president had set foot in the country.Their diplomacy yielded no concrete results, even as Trump described their talks as falling “in love.” The US called for North Korea to abandon its nuclear weapons, while Kim demanded full sanctions relief, then issued new threats.North Korea has sent troops to fight alongside Russia in its war with Ukraine.Donald Trump’s pledge to impose 25% tariffs on Canadian and Mexican imports in his first day in office does not exempt crude oil from the trade penalties, two sources familiar with the plan told Reuters today.Oil producers already warned that tariffs on crude would drive up the price of gas for US motorists, the FT reported earlier.“A 25% tariff on oil and natural gas would likely result in lower production in Canada and higher gasoline and energy costs to American consumers while threatening North American energy security,” Lisa Baiton, head of the Canadian Association of Petroleum Producers, told the business-focussed newspaper.In the vagaries of the markets and geopolitics, oil prices rose earlier on news of Trump’s tariffs pledge, over predictions they would discourage production, thereby raising prices, but now have dropped slightly, Reuters reports, on news of a pending ceasefire between Israel and Hezbollah in Lebanon, apparently because Wall Streeters, leaping 10 steps ahead, imagine it could lead to a relaxing of sanctions on Iran and therefore a glut of oil supply, suppressing prices…. More

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      Trump’s cabinet isn’t as anti-Wall Street as voters might want to believe | Robert Reich

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      Will anything stop Trump?He’s got control over both chambers of Congress, a tractable supreme court, a political base of fiercely loyal Magas, a media ecosystem that amplifies his lies (now including Musk’s horrific X as well as Rupert Murdoch’s reliably mendacious Fox News) and a thin majority of voters in the 2024 election.He doesn’t worry about another election because he won’t be eligible to run again (or he’ll ignore the constitution and stay on).Of course, there are the midterm elections of 2026. But even if Democrats take back both chambers, Trump and his incipient administration are aiming to wreak so much damage on America in the meantime that Democrats can’t remedy it.The Republican-controlled Senate starting 3 January won’t restrain Trump. Yes, Trump overreached with his pick of Matt Gaetz for attorney general. Apparently even Senate Republicans can’t abide alleged sex trafficking of girls for drug-infested sex parties, but this is a very low bar. (Gaetz denies any wrongdoing.)So, as a practical matter, is anything stopping Trump?Yes, and here’s a hint of what it is: on Friday, Trump picked Scott Bessent to serve as US secretary of the treasury.Bessent is the man Elon Musk derided only a week ago as the “business-as-usual choice” for treasury secretary, in contrast to Howard Lutnick, whom Musk said would “actually enact change”.Musk’s view of “change” is to blow a place up, which was what Musk did when he bought Twitter.Over the last two weeks, Musk has convinced Trump to appoint bomb-throwers Robert F Kennedy Jr to health and human services and Pete Hegseth to defense and to put Musk and Vivek Ramaswamy in charge of cutting $2tn from the federal budget.But Bessent is the opposite of a bomb-thrower. He’s a billionaire hedge fund manager, founder of the investment firm Key Square Capital Management, and a protege of the Maga arch-villain George Soros. (He’s also gay, which the Maga base may not like, either.)Why did Trump appoint the “business-as-usual” Bessent to be treasury secretary? Because the treasury secretary is the most important economic job in the US government.Trump has never understood much about economics, but he knows two things: that high interest rates can throttle an economy (and bring down a president’s party) and that high stock prices are good (at least for Trump and his investor class).Trump doesn’t want to do anything that will cause bond traders to raise long-term interest rates out of fear of future inflation and he wants stock traders to be so optimistic about corporate profits they raise share prices.So he has appointed a treasury secretary who will reassure the bond and stock markets.Stock and bond markets constitute the only real constraint on Trump – the only things whose power he’s afraid of.skip past newsletter promotionafter newsletter promotionBut wait. What about Trump’s plan to raise tariffs? He has floated a blanket tariff of 10% to 20% on nearly all imports, 25% on imports from Mexico, and 60% or more on Chinese goods.Tariffs of this size would increase consumer prices and fuel inflation – driving interest rates upward. (The cost of tariffs are borne by American businesses and households, rather than foreign companies.)Tariffs could also invite retaliation from foreign governments and thereby dry up export markets for American-based corporations – in which case the stock market would tank. (The last time America raised tariffs on all imports – Herbert Hoover’s and congressmen Smoot and Hawley’s Tariff Act of 1930 – the Great Depression worsened.)In short, tariffs will rattle stock and bond markets, doing the exact opposite of what Trump wants.So Trump has appointed a treasury secretary who will soothe Wall Street’s nerves – not just because Bessent is a Wall Street billionaire who speaks its language but also because Wall Street doesn’t really believe Bessent wants higher tariffs.Bessent has described Trump’s plan for blanket tariffs as a “maximalist” negotiating strategy – suggesting Trump’s whole tariff proposal is a strategic bluff. Wall Street apparently thinks tariffs won’t rise much when other countries respond to the bluff with what Trump sees as concessions.Instead, Wall Street expects Bessent to be spending his energies seeking lower taxes, especially for big corporations and wealthy Americans, and helping Musk and Ramaswamy cut spending and roll back regulations.It’s a sad commentary on the state of American democracy when the main constraint on the madman soon to occupy the Oval Office is Wall Street.I suppose we should be grateful there’s any constraint at all.

      Robert Reich, a former US secretary of labor, is a professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His newest 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 More

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      Trump camp rivalries come to fore over efforts to oust top adviser

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      Internal rivalries spilled into public view on Monday as Boris Epshteyn, a top adviser to Donald Trump, found himself at the center of an ouster effort over accusations he asked potential administration nominees to pay monthly consulting fees in exchange for lobbying for them to the president-elect.The maelstrom engulfing Epshteyn suggested that barely 20 days since Trump won the election, the knife-fight culture of the first Trump presidency, where bitter aides took any opportunity to remove rivals, had returned.Over the weekend, David Warrington, the Trump 2024 campaign’s general counsel, finalized the main conclusions of a review into Epshteyn that found he had unsuccessfully solicited tens of thousands of dollars from potential nominees including Scott Bessent, who has been tapped to be Treasury secretary.According to the review, one day after Trump met with Bessent for the first time in February, Epshteyn invited him to lunch at a hotel in Palm Beach, where he asked for a monthly retainer of at least $30,000 to promote his name at Mar-a-Lago in case Trump won the election.Bessent declined and complained to an aide that Epshteyn tried to shake him down. Later, when Epshteyn asked Bessent to invest $10m in a three-by-three basketball league, he declined but told associates Epshteyn would probably give him better access if he had taken up the offer.The review into Epshteyn, a longtime Trump adviser who has wielded outsized influence with Trump over cabinet picks and positions in key departments, also concluded Epshteyn’s employment and access to Trump should be terminated, according to two people briefed on the findings.But Epshteyn remained part of Trump’s inner circle as of Monday evening, with Trump riding high on the news that special counsel prosecutors had moved to dismiss the two federal criminal cases against him – a victory he credited to Ephsteyn.The first person that Trump called when prosecutors withdrew the cases against him was Epshteyn, according to two people with Trump at the time, which occurred just as CNN first reported the existence of the review into Epshteyn’s consultancy scheme.For the remainder of the day, Epshteyn was on the offensive as his allies dismissed the review as an attempt by Warrington to decapitate Epshteyn after he successfully pushed for Bill McGinley to be the White House counsel, rather than Warrington, who had also been in contention for the role.Epshteyn’s allies later portrayed the review as a political hit job capitalizing on Epshteyn’s role in pushing for the former congressman Matt Gaetz to get the nomination for attorney general before it sank under the weight of sexual misconduct allegations.Epshteyn denied the allegations. “I am honored to work for President Trump and with his team,” he said in a statement. “These fake claims are false and defamatory and will not distract us from making America great again.”If the failure of the Gaetz nomination was seen as an opportunity to oust Epshteyn, even in part, it may have been a miscalculation since the original idea to have Gaetz lead the justice department came from Trump himself, according to a person with direct knowledge of that conversation.One Trump adviser who does not care for Epshteyn speculated on Monday night that his influence was weakened by the allegations. But another Trump adviser suggested Epshteyn may have emerged stronger. “Trump isn’t impressed by a pile-on because that’s what all those prosecutors did to him,” the adviser said.Epshteyn’s staying power with Trump has remained constant over the years and surprised newcomers to Trump’s orbit. Elon Musk, the world’s richest man, and former Fox News host Tucker Carlson have both remarked to associates that they did not understand why Trump placed so much trust in Epshteyn.The principal reason for that trust in the last two years, according to multiple aides and associates, has been because Trump has regarded him as a major reason for how he sidestepped legal peril during the 2024 campaign.Epshteyn assembled and oversaw the Trump legal team during the criminal investigations and in the multiple criminal cases, including when Trump found it nearly impossible to find capable lawyers to represent him. “Boris was always right,” Trump is said to have remarked about Epshteyn’s legal strategy.That endeared him to Trump, who has taken Epshteyn seriously on policy and personnel suggestions, even if they were derided by others on the Trump team. When Trump named his top picks for the leadership of the justice department, they were Trump’s personal lawyers who had all been recruited by Epshteyn. More

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      in US Politics

      Donald Trump slams federal cases against him after special counsel moves to drop them – live

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      Trump has broken his silence on the decisions by prosecutors to drop the election interference charges and the classified documents case against him.In a post on Truth Social, the president-elect said: “These cases, like all of the other cases I have been forced to go through, are empty and lawless, and should never have been brought.”He continued:
      Over $100m Dollars of taxpayer Dollars has been wasted in the Democrat Party’s fight against their Political Opponent, ME. Nothing like this has ever happened in our Country before. They have also used State Prosecutors and
      District Attorneys, such as Fani Willis and her lover, Nathan Wade (who had absolutely zero experience in cases such as this, but was paid MILLIONS, enough for them to take numerous trips and cruises around the globe!), Letitia James, who inappropriately, unethically, and probably illegally, campaigned on “GETTING TRUMP” in order to win Political Office, and Alvin Bragg, who himself never wanted to bring this case against me, but was forced to do so by the Justice Department and the Democrat Party.
      It was a political hijacking, and a low point in the History of our Country that such a thing could have happened, and yet, I persevered, against all odds, and WON. MAKE AMERICA GREAT AGAIN!
      Joe Biden and First Lady Jill Biden will attend Donald Trump’s inauguration in January, a White House spokesman told Reuters.“The president promised that he would attend the inauguration of whomever won the election,” said Andrew Bates, senior deputy press secretary at the White House. “He and the First Lady are going to honor that promise and attend the inauguration.”Just hours after Joe Biden pardoned two turkeys in an event marking the official start of the holiday season in Washington, First Lady Jill Biden received the White House Christmas tree. The Frasier fir was delivered to the White House from the Blue Ridge Mountains in North Carolina, a region recently impacted by Hurricane Helene.Jack Smith is planning to release a final report into his investigations into Donald Trump’s classified documents and election interference cases, CNN reports.Attorney general Merrick Garland will publicly release the report, as he has past special counsel reports, a source familiar with the matter tells CNN. However, it remains unclear how much information will be included in the reports.Philadelphia District Attorney Larry Krasner has dropped his office’s lawsuit against Elon Musk and his America Pac. Krasner had sued Musk over his super Pac’s $1m-a-day lottery, where swing state voters were entered into a drawing every day before the presidential election in exchange for signing a petition.Teddy Schleifer of Puck News first posted a screen capture of the court case today, marking it “Discontinued and Ended”.A Philadelphia judge had rejected Krasner’s request for an injunction, on the basis that Musk’s lottery violated state election laws, on 4 November.Donald Trump has declined to sign presidential transition paperwork that requires disclosure of private donors. The memorandum of understanding, which requires an incoming president to disclose the names of private donors and caps their donations at $5,000, would give Trump access to up to $7.2m in federal funding.Here’s Robert Tait with more:Sidestepping it means Trump can raise unlimited amounts of cash from rich backers to finance his return to the White House while concealing what they are being promised in return.He is the first incoming president not to sign the federal transition funding agreement, which is dictated by the Presidential Transition Act.Transition funds are typically raised to pay for staff, office space and travel needed to put together an administration.Trump’s decision to avoid the standard procedure has alarmed ethics experts, who warn that it enables wealthy individuals to influence the makeup of a new administration without their names or potential conflicts of interest being disclosed.It also means the president-elect can accept unlimited donations from foreign donors, who – in contrast to rules prohibiting foreigners from contributing to election campaigns – are legally allowed to donate to transitions.Chuck Schumer, Senate majority leader, has scheduled Senate Democrats’ leadership elections for 3 December, according to reports.According to CNN, the leadership elections will start at 9:30am, per a Democratic leadership aide.Meanwhile, the Democratic national committee announced earlier today that it will select its next chair during a 1 February vote. The committee also plans to hold four forums for candidates in January.Trump has broken his silence on the decisions by prosecutors to drop the election interference charges and the classified documents case against him.In a post on Truth Social, the president-elect said: “These cases, like all of the other cases I have been forced to go through, are empty and lawless, and should never have been brought.”He continued:
      Over $100m Dollars of taxpayer Dollars has been wasted in the Democrat Party’s fight against their Political Opponent, ME. Nothing like this has ever happened in our Country before. They have also used State Prosecutors and
      District Attorneys, such as Fani Willis and her lover, Nathan Wade (who had absolutely zero experience in cases such as this, but was paid MILLIONS, enough for them to take numerous trips and cruises around the globe!), Letitia James, who inappropriately, unethically, and probably illegally, campaigned on “GETTING TRUMP” in order to win Political Office, and Alvin Bragg, who himself never wanted to bring this case against me, but was forced to do so by the Justice Department and the Democrat Party.
      It was a political hijacking, and a low point in the History of our Country that such a thing could have happened, and yet, I persevered, against all odds, and WON. MAKE AMERICA GREAT AGAIN!
      While the case involving classified documents case will be dropped against Donald Trump, prosecutors say they will continue to pursue the case against two of his employees.According to CNN, special counsel Jack Smith said that while he is dropping the prosecution of Trump for allegedly mishandling classified documents, prosecutors will proceed with the case against two of his employees – Walt Nauta and Carlos de Oliveira – who are co-defendants in the case.Both individuals, who work for Trump, are accused of assisting the former president in obstructing the federal investigation into sensitive government documents.CNN noted that the case is now before the 11th US circuit court of appeals, which is reviewing a judge’s order dismissing all charges.Vice-president-elect JD Vance has responded to the news that prosecutors have dropped election interference charges and the classified documents case against Donald Trump.“If Donald J. Trump had lost an election, he may very well have spent the rest of his life in prison,” Vance wrote. “These prosecutions were always political.”He continued: “Now it’s time to ensure what happened to President Trump never happens in this country again.”In statement, Steven Cheung, the communications director for the president-elect, said: “Today’s decision by the DOJ ends the unconstitutional federal cases against President Trump, and is a major victory for the rule of law.“The American People and President Trump want an immediate end to the political weaponization of our justice system and we look forward to uniting our country,” he added.Federal prosecutors have also moved today to abandon the classified documents case against Donald Trump, similarly to the election interference case, in light of longstanding justice department policy that says sitting presidents cannot face criminal prosecution – even though Trump has not yet been inaugurated.The announcement in an appeals court filing in Florida came shortly after the similar filing was made by prosecutors in Washington DC, where they asked to dismiss the case accusing Trump of plotting to overturn the 2020 election, the Associated Press reports.The move amounts to a predictable but nonetheless stunning conclusion to a criminal case that just one year ago had been seen as the most perilous legal threat that he faced. It reflects the practical consequences of Trump’s electoral victory, ensuring he enters office free from scrutiny over his hoarding of top secret documents at his Mar-a-Lago residence in Florida after leaving office in January 2021 – conduct that prosecutors said had jeopardized national scrutiny.The dismissal had been foreshadowed in recent weeks by the revelation that special counsel Jack Smith was evaluating how to wind down both that case and a separate pending prosecution he brought charging Trump with plotting to overturn the results of the 2020 election.Justice department legal opinions dating back decades say sitting presidents cannot be indicted or prosecuted while in office and the government’s filings today indicate that, although unprecedented, they have decided this also applies to a president-elect who was charged while still a private citizen. More