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Post #79: Federalism to the rescueGov. Ron DeSantis (R-FL) decried lockdowns and mandates (while promoting monoclonal antibodies)

Federalism led by the Sunshine State government
Very impressive and much too rare in today’s age. Freedom over tyrannyScience and statistics over lies, scaremongering, oxygen deprivation, and unconscionable, forced vaccinations of the very cohort, young people, that are least likely to succumb to the Corona virus. Sanity over destructive insanityHumanity over inhumanitySovereignty over a wide open southern border.  And penalties for FL-based employers, both public and private, that demand Corona virus vaccine documentation, which the Sunshine State governor and legislature view as infringements of 4th Amendment privacy rights and, I strongly assume, as infringements of unenumerated, yet inalienable rights codified in the 9th Amendment.  In short, penalties for documentation demands that threaten employee discrimination and termination and violate state and federal medical privacy rights are being addressed by the pivotal executive and legislative branches of the Florida State government.  

Isn’t this what we should expect from every governor who took an oath to uphold his/her respective state’s constitution, which closely mirrors the US Constitution to which the original states gave birth, and to which every state is bound, as concerns the Bill of Rights protections for all Americans, thanks to the 14th Amendment to the US Constitution?  Isn’t this what we should expect from every state level legislator that took the same oath, especially if the federal government acts tyrannically, i.e., if the separation of powers doctrine between the legislative, executive, and judicial branches, clearly enumerated and limited powers, and the 10th Amendment enshrined into the US Constitution fail to prevent tyranny and uphold freedom?  Isn’t it then — now — up to the states, which gave birth to the US government and clearly “ring-fenced” its power over both states and individuals, to fight for a revival of the very inalienable rights protections they insisted upon when drafting and signing off on the US Constitution, very much including the incorporation of the Bill of Rights?

Federalism in limited, but stout action:
Go Freedom Ron! Go Florida State legislature, which has worked with the governor to recover various inalienable rights that were indefinitely and unconstitutionally suspended or stripped from the people of Florida by tyrannical bureaucrats at county, state or federal levels.  These usurpations were a) a violation of the 10th Amendment to the US Constitution assuring substantial state and citizen rights not explicitly delegated to the United States in the federal constitution; b) and/or a violation of the Takings Clause of the 5th Amendment thanks to prolonged, bankrupting lockdowns imposed especially on small businesses and churches; c) and/or a violation of the US Constitution’s Commerce Clause, whose prime purpose is to underpin international and interstate trade at the federal level, not to impede it, as per the CDC’s long-standing sailing ban, which Florida succeeded in getting overturned; and/or d) a violation of other aspects of state or federal statutory or constitutional law that protect the rights and powers of individuals while limiting the extent to which government can “lord over them,” very much including daily masking up, for up to eight hours a a time, five days a week, of the very school children that are at virtually zero risk to the Corona virus, even if parents opposed it.   

How did the Florida legislature specifically reinstate greater freedom for Floridians?  Via new bills issued by the legislature which were signed into law by the governor to ban unconstitutional usurpations (“Governor Ron DeSantis Signs Landmark Legislation to Ban Vaccine Passports and Stem the Tide of Local and State Government Overreach“) and, in truly landmark fashion, to end increasingly destructive indoctrination over education. Recall that statutory laws, which have deference only to constitutional law, or the supreme law of the state (and country), have constitutional primacy and legitimacy over any executive orders issued by governors, the true nature of which is not legislation, but to execute statutory law in a constitutional order where only the legislature gets to legislate, not the executive or judicial branch, or an un-elected, unaccountable bureaucracy, as is befitting of a representative republic featuring separation of powers.  Plus, executive orders are easy to overturn, as we have seen since the early days of the Biden administration.  Legislation, in contrast, is much strictly construed and harder to overturn, much as it is harder to institute, as it requires majority votes in both legislative chambers in favor of a bill (would be legislation) as well as the governor’s or the president’s signature to become a new statutory law.

I’m also referring to the fine Republican Florida legislature working in tandem with a liberty-loving, gutsy, common sense Republican Florida governor who put out the first executive order by any governor in the nation on September 25th, 2020 to end months of  mandates and lockdowns.  These are mandates and lockdowns which made a mockery of 5th Amendment property right protections.  In the process, they have ruined so many small businesses (the Corona virus policy insanity and tyranny has resulted in 44% less small US businesses) without leading to lower Corona virus death rates per 100,000 residents since January 21st, 2020 in heavily locked down states such as Pennsylvania, Michigan, North Dakota, and New Mexico.

Furthermore, I’m referring to the Florida legislature working with the Florida governor to eliminate mask mandates and forced vaccinations, which eviscerate bodily integrity protections clearly afforded by the encompassing 9th Amendment, as well as by the God-given right to breathe freely and to determine which substances we allow to enter our bodies. As regards the latter, I’m not only referring to the executive branch working with the legislative branch to make “vaccine passports” illegal in Florida — and, by extension, adding teeth to statutory law by fining public or private employers that insist on such information $5,000 per (reported) incident — I’m referring more broadly to Florida preserving the pivotal, constitutional right of medical privacy and overall privacy, for if you have no privacy, you clearly have no freedom.

Finally, the elimination of Corona virus mandates (distancing, capacity limitations, masks, vaccinations, etc.) and lockdowns thanks to the Florida State government striking down unduly, irrationally, counter-productively, and unconstitutionally imposed diktats, whether at the county, state or federal level, is all the more sensible given the following truisms: first, if masks work, then the masked are protected against the unmasked, so why should the masked worry about the unmasked?  Second, if inoculations work, then the inoculated are protected against getting infected by the Corona virus, so why should they worry about the uninoculated?

Isn’t it wonderful when politicians uphold their constitutional oaths, and when this dovetails with science, i.e., as long as same hasn’t become politicized, which has sadly become more of an exception than a rule?  Isn’t this how it is supposed to be in a country that has the most constitutional individual freedom and inalienable rights protections?  A constitutional, federalist, representative order is designed to protect individual liberty, maximize local decision-making authority, and limit the reach and tyranny of the federal government.  Why isn’t every governor and every state legislature, or at least the vast majority of red state governors and legislatures, doing exactly what the Florida governor and legislature are doing here and elsewhere when constitutionally protected inalienable rights are being usurped, especially by fascistic, demonic Coronacrats?  Didn’t state level politicians swear to uphold their state constitutions, in which inalienable rights protections are an integral part?  Therefore, shouldn’t our elected representatives become very active when these rights are being taken away by any source, be it bureaucratic, judicial, corporate or other?  And even if neither the governor nor the legislature can trump judicial tyranny in the short-term, at least they can make a principled stand against it and take their appeal to the ultimate sovereigns, the people, so that the state level legislature gets “we the people support” to reconfigure courts (via new appointments as judges retire — no “court-packing” — or via more prevalent term limits) or even to impeach unconstitutional judges, which a liberty-loving governor such as Ron DeSantis would certainly back? 

Will Florida’s federalism revival fail to get coattails?  (Please scroll down to post publication developments that I want to “carve out” at very bottom of this piece.)
What the heck is wrong with all the governors and legislatures falling down on “job one,“  especially in “red” states?  Where are all the “other Floridas?”  We’re going to need much more than just one state really endeavoring to consistently peel back federal, bureaucratic, and judicial tyranny, which is all the more urgent given how incredibly unhinged and destructive the US government has become be it fiscally, monetarily or culturally.  Have the deadbeat governors and the legislators been bought off by the feds or by Corporate America?  Have they been blackmailed?  Are they spineless wimps?  Do they not understand the oaths they have taken to uphold their states’ constitutions? Or, are too many of them fully aware of the oaths they’ve taken, yet are too addicted to the power and rush of despotism or to the allure of unimaginable financial gains thanks to fiat money-enabled redistributionism and cronyism, respectively?  In other words, constitutions, oaths to uphold them, decency, sovereignty, freedom, and humanity be damned? Or, are such governors and state legislators utterly convinced that they will be able to sustain their privileges and wealth as the country and living standards crumble? Or, are our elected leaders simply reflections and manifestations of an increasingly uncivil society more interested in handouts and alleged safety over precious and rare freedom married to personal responsibility?

Whatever is going on, none of it is good.  None of it augurs well.  To the contrary, happy federalism exceptions notwithstanding, including fighting federally mandated vax tyranny (please scroll down to very bottom of post).  Will more slacker state legislatures address the pivotal 2020 election fraud and unconstitutionality, in the process re-asserting their federalist constitutional right and duty while moving to mitigate the risk of “electing” another  illegitimate president.  Ultimately, people get the government they collectively deserve, freedom lovers and the blueprints to sustain them and free market capitalism — and thus the wealth of nations — be damned.

Fortunately, there are some signs that more and more Americans are ready to ignore the Coronacrats’ unconstitutional diktats on the masking front, on the physical distancing front, on the lockdown front, and on the socially, emotionally, and physiologically disastrous  “stay at home and isolate” front.  Not only are everyday Americans increasingly aware of the Coronacrats’ hypocrisy regarding “all that,” whether it is how they lead their own lives or how they conduct their lavish, unmasked parties, or when the leftist elites’ favorite unmasked anarchists demonstrate and smash innocent citizens and their property (that long, hot summer of 2020), but more and more Americans are gathering peacefully in large numbers in a natural, healthy, happy, and social manner, whether it is at July 4th festivals in small town Florida or at late summer ball games across America:

Enough such Americans, endowed with the requisite civil courage, civic duty, ethics, common sense, and honesty engaging in sustainable behavior  — especially when they are totally sober and their like-minded buddies aren’t nearby, but a tough, every day situation “singles them out” — will be required to counter a long-standing, increasingly self-mutilating societal collapse; a “Jonestown” event at the national level (much the same can be said for the majority of OECD nations).  Perhaps, just perhaps, enough such Americans will in fact encourage reticent state level leaders to revisit the oaths they took and push them into tyranny-defusing policy action.

In any event, “freedom field generals,” such as President Trump and Governor DeSantis, will very much need at least a small “army” of such Americans ready to also nullify (“no, we won’t close” or “just say no“) unconstitutional, freedom-robbing decrees if society is to have any hope of restoring inalienable rights and the rule of law.  A general can’t lead a fight against a cancerous enemy — a despotic, deeply entrenched, destructive, lawless, rent-seeking enemy that controls virtually all institutions — wanting to eviscerate the last remaining vestiges of individual freedom, Main Street property right protections, and constitutional fidelity without at least a stout minority of “we the people” being on the “battlefield for liberty.”  This is even true, no especially true, if it seems like a lost cause, and even if it will often feel very lonely, at least initially.  Last but not least, this is all the more true given what is sadly obvious, and was presciently predicted would occur some 64 years ago, namely today’s status quo:

“When you see that trading is done, not by consent, but by compulsion – when you see that in order to produce, you need to obtain permission from men who produce nothing – when you see that money is flowing to those who deal, not in goods, but in favors – when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you – when you see corruption being rewarded and honesty becoming a self-sacrifice – you may know that your society is doomed.”  ~ Ayn Rand

Or, a tyrannical, increasingly centralized status quo formulated brilliantly and frighteningly by Mark Levin:
“They (the statists/lefists) created a massive leviathan, they want to double its size in two weeks, and they’re using this leviathan, which is an appendage of the Democratic party and visa versa, let’s be honest — so they’ve used the CDC to go after landlords and guns, they’re using OSHA to go after the “unvaccinated,” they are using the Department of Education to violate federalism and the 10th Amendment and to go after a governor (Ron DeSantis). … You can see the enormous destruction to our constitutional system, to the police powers of the states, to undermining of states’ authority vis-a-vis their school systems, the centralization of power that is taking place whether it is the virus, whether it is taxation, whether it is voting, we are under assault.  The entire system is under assault.   

Some portfolio allocation food for thought given our status quo:
How does this all tie in to asset allocations and asset prices?  Like this: in an age of fiat government and fiat money and the resulting cronyism, increasing redistributionism from makers to takers, ever-rising regulatory complexity impediments and an estimated $1.75trn in annual regulatory compliance costs for the small business backbone of the economy, evisceration of price discovery (imperfect, albeit it sound market-based allocations underpinning productivity enhancement and rising standards of living), ZIRP and QE-determined asset valuations, and the unsustainable rise in debt fathered by artificially low interest rates, most assets are mis-priced, and real economic growth prospects are going from bad to worsewhich will require even more electronic money printing!  Talk about a vicious cycle.  In the interim, the valuation disconnect between the very bonds and stocks most impacted by fiat money and the underlying economy most distorted and ravaged by unsound money and unconstitutional government remains both the reallocation (away from overvalued assets) opportunity and the overvaluation risk for accounts featuring substantial exposure to those bubble valuation assets.

In a related manner, and I know you’ve heard this from me too many times, it will behoove investors who are ignoring Mr. Market’s boom to bust history to stop ignoring it and to instead ignore the perennially self-serving Wall Street advice to stay “fully invested” in so-called traditional assets.  Specifically, investors should prepare themselves for the long overdue and inevitable reversion from today’s overvaluation boom to “tomorrow’s” undervaluation bust.  That bust will result in bond and stock valuations that will make mean valuations such as a 4.5% yield on a 10-year Treasury and a P/E on the S&P 500 of 16 look like bubbles.  Consider realizing the “bubble-blowing” valuation gifts in bonds and stocks still on offer.  Consider reallocating a material portion of your investable portfolio elsewhere.  To gain incredibly valuable “optionality,” start by purchasing short-term government bonds of OECD nations that have no interest rate risk. Put up with ZIRP and nominally negative real yields to to avoid a very stout interest rate-induced bond and stock valuation compression (please see figure 10 and hone in on the graphed section between 1970 and 1981), also known as sharply rising interest rates.  For framing purposes, recall that the 10-year Treasury’s yield topped out at over 15% during 1981, a point in history when America had a hugely better balance sheet and manufacturing base, and an incomparably smaller monetary base in both absolute terms and, more importantly, relative to the size of the economy.  Said differently, bond valuations stand to get drubbed even much more significantly than they did in the late ’70s and into the early ’80s, especially when considering our historically low bond yields.

Furthermore, as regards purchasing US T-bills or their foreign equivalents, count on fiat governments putting their fiat banks’ printing presses to work to repay you when you invest in short-term government bonds, should tax collections fall short, which they invariably will, and already are, by increasingly gaping margins.  Then capitalize on that “optionality” to venture into attractively-valued real asset investments, an investment window that could well appear on a fleeting or tactical basis thanks to a “risk-off” persuasion associated with increasingly pronounced economic weakness.  Invest in particular in the vital and scarce energy and ag arenas.  Such assets will become even scarcer and more valuable over time (strategically) as the last remnants of free market capitalism threaten to disappear throughout developed nations.  Perpetually rising crony capitalism and fascism will  serve to further fuel unrivaled currency debasement (ZIRP and $120bn of monthly QE in the US), as they and other forms of plutocracies or oligarchies always do.  Meanwhile, amidst spreading signs of increasingly intractable parts shortages, rapidly rising producer price inflation (both the inevitable progeny of virus policy-induced supply problems), an inescapable move away from just-in-time inventory to getting stocked up, sustained policy incentives not to work, progressively more strident vax tyranny, and unparalleled money creation over the past 15 years starting to move from the financial economy to tangible assets, we may be on the brink of igniting the mother of all stagflations.  (Note that hyperinflation has always accompanied economic weakness and usually outright contraction.)

Last but not least, and especially if the stagflation of the ’70s and early ’80s was but a “warm up” of what is ahead, don’t forget to get portfolio insurance, also known as physical silver and gold.  Such an allocation, if only of satellite size, could well offset, and potentially even overcome, those assets in your portfolio that get substantially repriced to the downside, despite timely repositioning efforts away from bubble valuation assets.  This way, if what remains of inalienable rights and sanity gets taken away together with much of your property, at least you’ll have some discreet and transportable wealth which will be poised to explode in dollar and other fiat currency terms.  Said could prove highly valuable in terms of procuring adequate amounts of energy, food, and other critical supplies and tools down the road as our economic system breaks down.  Bullion may also prove useful to bribe corrupt government officials or border guards, should that become necessary.  Monetary, economic, and political history unfortunately tells us such bribes may again occur in the developed world. Sadly, this time around, they may well first become common in the biggest banana republic of all in the making, the US, with much of the erstwhile rule-of-law developed world a few steps behind, but heading to, and then off, the same cliff.

And if, against all odds, spreading federalism abetted and enabled by civil courage can help return us to a liberty-drenched, representative, constitutional republic, then those freedom-loving individuals that have the means to underpin and propel such a wonderful outcome may be able to play a critical role not only to benefit themselves, their family, and their friends, but on behalf of future generations that will also yearn to live free, a desire as natural as breathing.  After all, this is precisely what the unparalleled American Founders and Framers bestowed upon us, at tremendous cost in blood and treasure for hundreds of thousands of Americans at the time.  It would be nice if we could take a page out of their “Mission Impossible, Made Possible” book. 

Dan Kurz, CFA
DK Analytics 

The obligatory boilerplate:
This commentary is not intended as investment advice or as an investment recommendation. Past performance is not a guarantee of future results. Price and yield are subject to daily change and as of the specified date. Information provided is solely the opinion of the author at the time of writing.  Nothing in the commentary should be construed as a solicitation to buy or sell securities. Information provided has been prepared from sources deemed to be reliable but is not a complete summary or statement of all available data necessary for making an investment decision.  Liquid securities can fall in value.

FYI: select edits, grammatical improvements/corrections, and/or additional links have been incorporated into this post past the initial publishing date of September 8th, 2021.  That said, neither the thrust of the piece nor the overarching message that was communicated at the initial publishing date will be altered in the slightest.  Separately, I am grateful, as always, for various links to great articles and graphs that my friends Doug and Debi furnished me with.  Said often find their way into my publications.  Thank you, D&D!

Post publication developments that I want to “carve out:”  Older ones near top, newer ones near bottom.
Federalism spreading!  (19 Governors, 2 AGs Resist Biden’s Vaccine Mandates)
— A gutsy Lee County, FL state representative is involved in removing a tyrannical Lee County education department bureaucrat that refuses to leave it up to parents to determine whether their kids masked up (I was deeply involved in trying to achieve same for nearly one year.  Related links, from the first to the second to the third effort. The first one was an appeal to the bureaucracy, the second one to the governor, the third one to parents.) 
DeSantis Responds to Biden’s Vaccine Mandate: ‘In Florida, We Will Fight Back.’
— If you can’t beat ’em, join ’em.  If Big Pharma working in cahoots with our political, fascistic FDA and CDC can’t demonize and ban Ivermectin enough, well then Pfizer will reformulate it to make billions of $.  Suddenly, Ivermectin will no longer be a horse de-wormer, but FDA-approved and CDC-marketed “Pfizermectin.”

— Courts Will Rule Against Biden on Vaccine Mandate Penalties: Alan Dershowitz.  Excerpts: “No. 1, is this something the federal government can do as compared to the states?” Dershowitz told Newsmax. “The states have police power. The federal government doesn’t have police power. The federal government’s powers have to derive from the text of the Constitution.”  It’s likely that courts will say that the government can enforce vaccine mandates but will argue that it is only Congress that can order punishments and fines, he said (recall that only the legislative branch can legislate and create new statutory law, not the bureaucracy and not the courts, whether at the federal or the state level — Dan).  “I think the courts will say the federal government does have the power because this is a national issue across the state lines. It’s not limited to states. It’s contagious,” Dershowitz said. “I think they will say that in the event that science supports it, there can be mandated vaccinations with exceptions.”  But such mandates are “generally relegated to the legislature in our system of government, so I think the courts will focus on that issue first and say that the president may not have the authority to do this without congressional authorization,” Dershowitz said.
Prominent immunologist now regrets voting for Biden.  Excerpts: Dr.
Noorchashm slammed Biden’s White House and the Centers for Disease Control and Prevention in late August for an “irrational focus on mandated vaccination, instead of immunity,” which he claims causes harm by not promoting determination of medical necessity and vaccinating already immune individuals.  The last straw for Noorchashm came when Biden announced his sweeping vaccine mandate last Thursday.  “LET ME BE CLEAR @POTUS: To mandate vaccination of any COVID-recovered American against his/her will is unscientific, unethical and illegal,” Noorchashm wrote on Twitter. “@WhiteHouse U have overstepped and are operating in dangerous territory when it comes to already immune Americans. Cease and desist!”  Noorchashm, who voted for Biden in the 2020 presidential election, instantly regretted helping the Democrat get into the White House.  “I voted for Biden….As a McCain republican. It was an error and I now regret it,” the immunologist tweeted on Friday morning. “Last night’s chest beating press conference by @POTUS was one of the most destructive and divisive speeches ever given by a US president who claims 2 B a well-reasoned uniter, acting on science.”
Horowitz: As vaccinated COVID hospitalizations soar, government blocks the one option that work
s.  Excerpts: Now that the vaccines are no longer working and the mass vaccination appears to have made the virus worse through a leaky vaccine syndrome known as “the imperfect vaccine hypothesis,” why are we all not uniting behind early treatment? Notice how no other governor aside from Ron DeSantis is even promoting the monoclonal antibodies, much less making them more accessible and telling everyone to get treated on day one. I can’t tell you how many emails I get from my show listeners who complain they can’t access the monoclonal treatments for various reasons in some states. Why would our government not make sure every American is as inundated with information about the monoclonals as they are with information about the vaccines that are already obsolete?  There are no good answers to this question that do not reveal a very dark and sinister motivation. But the answer is likely related to why the government-medical establishment has declared war on all early treatments and has refused to approve outpatient antibiotics and steroids for treatment, much less ivermectin, hydroxychloroquine, and several dozen other promising therapeutics. By ensuring that there is zero approved outpatient treatment, our government has trapped nearly every American who has not been infected – vaccinated and unvaccinated – into a death trap in the overrun hospitals. And that seems to be exactly where they want us.
CDC Director: Agencies Urgently Working on COVID-19 Vaccine for Younger Children.  Excerpts: The UK Joint Committee on Vaccination and Immunisation (JCVI) earlier in September said it will take a “precautionary approach,” saying that “given this very low risk, considerations on the potential harms and benefits of vaccination are very finely balanced.”  In June, scientists from University College London, as well as the Universities of York, Bristol, and Liverpool, discovered that most children who died of COVID-19 had underlying health problems. Overall, the COVID-19 mortality rate among children is 2 deaths per 1 million children in England, they found (bold text courtesy of your author).
Members of Congress and Their Staff Are Exempt From Biden’s Vaccine Mandate
— Department of Education opens civil rights investigation into Florida ban on mask mandates; New CDC figures appear to bolster Gov. DeSantis argument for parental choice over mask mandates.  Excerpt: “This data was based on reports from 260 medical centers in the U.S. The major findings were that 1,790 kids were hospitalized with COVID during the period from August 2020 to August 2021, and a total of eight have died.”  (Bold text courtesy of this site’s author.)
Major Food Industry Employer- Biden’s Tyrannical Vaxx Mandate will be Met with 1776.  Alfie Oakes of joins The Alex Jones Show to call on people to urge Florida Governor Ron DeSantis to take a meeting with him by emailing him your concerns about Biden’s Medical Tyranny Lockdown: and text “USA” to (833)-501-0831 to show your support for Alfie Oakes.  TALK ABOUT CIVIL COURAGE and an action bias!  Two liberty giants at work!
Hot Mic Catches Israeli Health Minister Admitting Vaccine Passports Are About Coercion

— Arizona attorney general suing Biden administration slams ‘complete hypocrisy’ of COVID vaccine mandates
— It isn’t just against a tyrannical federal government that states should push back, but against the globalist elite also threatening to pursue medical tyranny, eviscerate affordable energy for the masses, end national sovereignty, and strip property rights from Main Street makers and job takers.
— A tactical win for freedom, parental rights, and sanity in strategic war against rapidly spreading despotism: Federal Judge Sides With DeSantis on Mask Mandate Ban.
— This is precisely what red states need to put down, led by the Sunshine State: Missouri Math Teacher Dismissed Following Private Conservative Facebook Posts