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March 2023

Who Is Poisoning Iranian Schoolgirls? The attacks, which have sickened thousands, are the latest evidence that the regime is losing its grip. By Reuel Marc Gerecht and Ray Takeyh

https://www.wsj.com/articles/who-is-poisoning-iranian-schoolgirls-khamenei-mullahs-irgc-protest-mahsa-amini-control-regime-9e17109b?mod=opinion_lead_pos6

Iranian news outlets began reporting three months ago that schoolgirls were falling ill with headaches, dizziness, nausea, fatigue and breathing difficulties. The shrine city of Qom, historic seat of the clerical establishment, appears to have been ground zero, but 25 of the country’s 31 provinces have reported similar outbreaks. A parliamentarian who is part of a fact-finding commission said that upward of 5,000 students and teachers might have been poisoned.

Official reaction ranged from surprise and denial to grudging acknowledgment. Last week the Interior Ministry reported the arrest of several suspects. Supreme Leader Ali Khamenei called the poisoning “a major and unforgivable crime.”

The threats to global stability and the US homeland are growing. How will the war in Ukraine end? Can China and the US develop a less combative relationship? Join historian and Journal columnist Walter Russell Mead and editorial page editor Paul Gigot for an interactive conversation on the threats to US security.

Yet there is little doubt that the clerical regime is responsible for this assault. The only two organizations capable of undertaking an operation of this scale are the Intelligence Ministry and the domestic intelligence service of the Islamic Revolutionary Guard Corps. The question is why the cagey supreme leader would opt for a course of action that was bound to unsettle further his wobbly theocracy. It’s hard to imagine his hand-picked men moving without his consent.

Since the outbreak of the “women, life and freedom” protest movement in September, which was sparked by the death of Mahsa Amini, the regime has tried to assert control over the streets without “excess” brutality. Beyond Iranian Baluchistan and Kurdistan, where the government has bloodily repressed dissent, the theocracy has veered away from firing automatic weapons on crowds, as it did in 2019 to suppress a near-insurrection. Authorities prefer to arrest Iranians by the thousand. That way fear spreads without massive bloodshed, burials and religious commemorations that invite more protests. The attack on the girls’ schools—most secondary schools in Iran are single-sex—was probably an effort to intimidate without killing, to create a paralyzing fear in parents and their children.

Biden’s Bank Bailout Whoppers The President offers assurances that markets don’t believe.

https://www.wsj.com/articles/president-biden-bank-failures-silicon-valley-bank-signature-bank-markets-white-house-fdic-deposit-insurance-fund-a5538900?mod=opinion_lead_pos1

President Biden tried to reassure Americans early Monday morning that the banking system is safe and not to worry about the failures of Silicon Valley (SVB) and Signature banks. Markets didn’t believe him because bank stocks took another plunge, with some down 60% or more.

Perhaps investors don’t believe the Administration’s Sunday interventions solve the problems. The Federal Deposit Insurance Corp. says it couldn’t find a private buyer for SVB, though a source tells us Treasury and the Federal Reserve favored one. FDIC Chairman Martin Gruenberg nixed it owing to hostility to bank mergers.

Instead the regulators offered solutions that bail out even uninsured bank depositors and other banks at unknown costs that Mr. Biden isn’t acknowledging. Take Mr. Biden’s pledge that “no losses will be borne by the taxpayers.” He said “the money will come from the fees that banks pay into the Deposit Insurance Fund.”

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That’s not nearly the full story. The FDIC’s Deposit Insurance Fund normally guarantees up to $250,000 in deposits, which protects small retail customers including mom-and-pop businesses. Banks pay for this guarantee with insurance premiums, but the insurance fund isn’t intended to backstop deposits of bigger customers with more capacity to weather losses if a bank goes under.

Yet after venture capitalists (Democratic donors) and Silicon Valley politicians howled, the FDIC on Sunday announced it would cover uninsured deposits at SVB and Signature Bank under its “systemic risk” exception. Apparently, Silicon Valley investors and startups are too big to lose money when they take risks. They benefited enormously from the Fed’s pandemic liquidity hose, which caused SVB’s deposits to double between 2020 and 2021. SVB paid interest of up to 5.28% on large deposits, which it used to fund loans to startups.

Bank collapses are a reckoning for Team Biden’s sheer economic incompetence By Betsy McCaughey

https://nypost.com/2023/03/13/as-banks-headed-for-crisis-team-biden-focused-on-prescribing-wokery/

The failure of three banks in the last two weeks, including Silicon Valley Bank and Signature Bank just this weekend, is a saga of utter government incompetence.

Call these bank collapses Biden’s Banking Busts. The administration has been obsessing on woke causes while banks teeter toward insolvency.

Three days before Silicon Valley Bank’s Friday failure, Treasury Secretary Janet Yellen cautioned that climate change puts the banking industry at risk.

Yellen was in la-la-land, speculating that future storms and tornadoes could diminish the value of banks’ assets.

Weather is a risk, but she was oblivious to the much more immediate problem facing banks — the plummeting value of the bonds they own. 

She was heedless to the impending downfall of SVB and possibly several other small banks that had purchased long-term bonds when interest rates were near zero.

After doing nothing to tame inflation the previous year, the Federal Reserve hiked rates repeatedly in 2022 to make up for its inaction.

Those rapid rate hikes, the most drastic in decades, made the banks’ bonds lose value.

A week before Yellen’s climate-change harangue, Moody’s Investors Service already had delivered SVB the bad news that it was about to be downgraded several notches because its bond inventory was not worth enough to repay depositors.

The day before Yellen’s loony speech, Federal Deposit Insurance Corp. Chairman Martin Gruenberg also warned that the diminishing value of banks’ bond holdings meant a $620 billion problem ahead.

Israel’s Judicial Reckoning by Evelyn Gordon

https://mosaicmagazine.com/essay/israel-zionism/2023/03/israels-judicial-reckoning/

Israel’s court is abnormally powerful and has caused half the nation to lose faith in its government. Reform will help, as long as it doesn’t cause the other half to do the same.

Anyone reading the press out of Israel these days would probably conclude that the country will soon cease being a democracy.

In January 2023, less than a month after taking office, Israel’s government unveiled a sweeping package of reforms to reduce the power of the nation’s Supreme Court, on the grounds that the court has undermined democracy by encroaching on traditional executive and legislative functions. The opposition, claiming that the reforms, not the court, are the true threat to democracy, responded almost immediately with massive protests. As the weeks have passed, the protests have intensified and spread beyond traditional opposition circles, and Israel has begun descending into chaos.

Where did this issue come from? Who is right? And what should Israel do now?

As someone who has written about the need to restrain the court’s excessive activism for three decades now—long before this became a partisan voting issue for many Israelis—in several major essays and dozens of shorter pieces, I consider most of these reforms not only within the bounds of normal democratic practice but in fact essential to bolstering Israel’s democracy. The current situation, in which half the public profoundly distrusts the Supreme Court, is clearly untenable for any country that wants to remain a democracy; because courts are a crucial mechanism for resolving disputes peacefully rather than through force, if they are widely distrusted, resorting to force becomes more likely. Yet at the same time, some of the concerns raised by opponents are valid and deserve to be taken seriously. Given the universal conviction that Israeli society is at a breaking point, balancing these two imperatives is an urgent task.