Delta’s first-ever Boeing 767 jet was bought for $30 million in 1982 with the help of employees and the public. See the historic plane’s full history.

Business Insider 

The Spirit of Delta 767 in 1982.

Delta Air Lines just celebrated the 40th anniversary of its first-ever Boeing 767-200 aircraft.
The plane, dubbed the “Spirit of Delta,” was purchased by employees for $30 million in 1982.
The jet helped the carrier crawl out of hard times with its improved fuel efficiency and passenger comfort.

Delta Air Lines’ first-ever Boeing 767 has a unique story behind it.The Spirit of Delta 767.
The carrier, like most others, was suffering from financial losses after President Jimmy Carter signed the Airline Deregulation Act in 1978.Jimmy Carter signing the Airline Deregulation Act of 1978

It used to be illegal for an airline to cancel routes the way Delta just took 3 cities off its flight list

This is partially due to increased competition from low-cost airlines, which could more easily enter the market thanks to the new law, and was exacerbated by the recession in the early 1980s.A 1968 photo of three flight attendants for Southwest Airlines, which was one of the budget carriers that rapidly expanded after deregulation.
Unfortunately, many of the once-great carriers didn’t survive the downturn, like Pan Am and Eastern Airlines. However, Delta, American Airlines, and United Airlines were able to power through due to strong management and financing.Braniff International Airways Boeing 747.

Source: The National Air and Space Museum, Photos show the glory days of Pan Am, a symbol of a bygone era of luxurious air travel before the airline went bust 29 years ago

But, that doesn’t mean they weren’t feeling a hole in their wallets. In 1982, Delta posted a $17 million annual loss — its first since 1957 — while United posted an operating loss of about $67 million.A United Airlines aircraft passes by a Continental Airlines aircraft as it taxis to takeoff from the runway of Ronald Reagan National Airport August 16, 2006 in Washington, DC.

Source: The New York Times, Aviation Pros

While most airlines opted to cut their workforce to cope, Delta, in a surprising move, actually decided to give everyone an 8.5% pay raise that year. Though, the carrier was criticized for its decision.Delta Air Lines pilots in the cockpit of a Boeing 747 in 1973.

Source: Delta Air Lines

However, the criticism empowered three flight attendants — Diane Carvelli, Virginia (Ginny) Oxford, and Jean Owens — to give back to the company.Delta CEO Dave Garrett with the three Project 767 flight attendants.

Source: Delta Air Lines

In September 1982, the women decided to buy Delta an aircraft as a symbol of gratitude.The Spirit of Delta 767.

Source: Delta Air Lines

To make this happen, over 18,000 employees donated at least 2.5% of their paychecks for one year, and donations were collected from retirees and local businesses.The Spirit of Delta 767.

Source: The New York Times

In just three months, the flight attendants raised $30 million to pay for Delta’s first-ever Boeing 767-200, which was already on order when Project 767 started.The Spirit of Delta 767 in 1982.

Source: The New York Times

“We were amazed at how many people volunteered,” Carvelli said in a 2022 press release. “Delta people are special folks. Every department, every place—when they work together, they can do pretty wonderful things.”The Spirit of Delta 767.

Source: Delta Air Lines

Dubbed the “Spirit of Delta,” over 7,000 people, including employees, friends, family, and the media, unveiled the widebody plane in a hangar during a ceremony in Atlanta, and it soon became a workhorse for the carrier.The Spirit of Delta 767 in 1982.

Source: Delta Flight Museum

“The Spirit of Delta galvanized our people during a difficult period in our company’s history,” Delta told Insider in a statement.Delta employees at the 767’s unveiling ceremony in 1982.
Speaking on how the 767 helped Delta during its troubled times, a spokesperson told Insider that the “pivotal aircraft” supported the recovery of the business…The Spirit of Delta 767.
…and contributed to Delta’s “continued growth over the past four decades.”A Delta 767 brochure in 1982.
Specifically, the widebody plane helped develop the carrier’s “intermediate and transcontinental routes…”The Spirit of Delta in 2006 on its way to its retirement ceremony.
…and offered an improved customer experience and 30% greater efficiency compared to older aircraft, according to the carrier.A collage of the aircraft’s interior.
Moreover, the plane’s cockpit was similar to the Boeing 757, which entered Delta’s fleet in 1984, so pilots did not have to undergo additional training to operate both types.Pilots and flight attendants on the Spirit of Delta in 1982.

Source: Delta Flight Museum

During its 23 years of service, the Spirit of Delta flew about 70,700 hours and over 34,000 cycles, meaning one takeoff and one landing.The Spirit of Delta 767.

Source: Delta Flight Museum

Over the decades, the plane also sported several paint jobs to celebrate historic events, like the Atlanta Olympics in 1996…The Spirit of Delta 767 in the 1996 Atlanta Olympics livery.

Source: Delta Flight Museum

…and Delta’s 75th anniversary in 2004.The Spirit of Delta 767 in the company’s 75th anniversary livery.

Source: Delta Flight Museum

The Spirit of Delta retired in 2006 in its original 1982 livery after completing a two-week farewell tour, stopping in 12 cities along the way.The Spirit of Delta 767 being repainted to its original livery.

Source: Delta Flight Museum

A permanent exhibition was created for the 767 at the Delta Flight Museum in Atlanta that same year.Moving the Spirit of Delta 767 to its permanent home in 2006.

Source: Delta Flight Museum

Onboard, visitors will find most of the aircraft has been gutted and set up with displays of old flight attendant uniforms, pictures, posters, glassware, and other memorabilia.The Spirit of Delta 767 exhibit in Atlanta.

Source: Delta Flight Museum

The items and information together tell the story of Delta’s first 767 plane and showcase the history of the airline’s jet age starting in 1959.The Spirit of Delta 767 exhibit in Atlanta.

Source: Delta Flight Museum

But, the celebration of the historic Spirit of Delta doesn’t stop there.The Spirit of Delta 767 in 2006.
December 15, 2022, marked the aircraft’s 40th birthday. In honor of the jet’s legacy, company CEO Ed Bastian pledged $300,000 to the Delta Care Fund, which gives money to employees in need.The Spirit of Delta 767.

Source: Delta Air Lines

The goal is to raise $30 million — the same amount the flight attendants raised in 1982 to buy the first 767.The Spirit of Delta 767 in 1982.

Source: Delta Air Lines

Today, Delta has 77 Boeing 767s in its fleet and has operated all four aircraft types since 1982, including the 767-200, 767-300, 767-300ER, and the 767-400ER.Delta 767.

Source: Delta Flight Museum, Planespotters

According to the carrier, the -200 and -300 versions were retired in 2006 and 2019, respectively, but Delta still flies the ER models.Flying on Delta’s Boeing 767-300ER.

I flew on Delta’s Boeing 767 from Sweden to New York in economy and it was the best transatlantic flight I’ve taken in a long time

While the -300ER/400ER aircraft were on their way to retirement by 2025 as a result of the pandemic, Delta has since decided to be more flexible on the timeline.Flying on Delta’s Boeing 767-300ER.

Source: Insider

“It’s hard enough to say what we’ll be flying in January, let alone what we’ll be flying in 2027,” Delta President Glen Hauenstein said during a November 2021 pilot webinar. “You don’t want to get yourself in a box where you’ve committed specifically to flying or retiring those planes.”Flying on Delta’s Boeing 767-300ER.

Source: Airline Weekly

Although the carrier does plan to eventually retire its 767s, Delta is updating its -300ERs in the meantime.Delta 767-300.
Specifically, the upgraded “76K” layout will feature a new Premium Select cabin, as well as other improvements, like LED lights and adding power ports to economy.Delta Premium Select.
“Newer and larger versions of the Boeing 767 equipped with modern cabins and technology remain a workhorse for Delta’s fleet on transcontinental and transoceanic routes,” Delta told Insider.The Spirit of Delta 767 in 2006.
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Apple is coming off a terrible year and Wall Street is torn on whether it’s set for more pain or about to skyrocket.

Business Insider 

Happy Friday eve, team. Phil Rosen here, reporting from Los Angeles. 

Something to note right off the bat: The Fed released minutes from its December meeting  yesterday, and policymakers seem concerned that bullishness from investors could make fighting inflation harder. 

Basically, if markets rally in part because of expectations for cooling inflation, the opposite could become true.

Asset prices could rocket higher again if investors believe the central bank is about to pull back. This has been shown in the speedy decline of US Treasury yields, which in part reflects investors’ outlook on further rate hikes. 

While the meeting minutes don’t tell us exactly what the Fed will do next month, generally they are worth paying attention to for hints into the thinking of central bankers.

For now though, let’s turn to the mightiest tech stock in the world. 

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Apple CEO Tim Cook

1. Apple is coming off a rotten year, shedding $846.34 billion in value in 2022. 

Shares fell further on Tuesday and Wednesday after a Nikkei report said demand for MacBooks, AirPods, and Apple Watches is weakening

The tumble brought the tech giant’s market cap below $2 trillion. It was the last company standing above that threshold. 

But Loup Funds’ Gene Munster said Apple stock should be worth double its current value, given that it’s one of the world’s greatest companies. 

He said December weakness isn’t something that will last because customers are loyal to the brand.  

“Ultimately consumers may delay for three, six, nine months, but they’re going to come back, they’re going to be upgrading iPhones, Macs, iPads [and] I think that’s something investors can lean into,” Munster said.

Over at Wedbush Securities, Apple got its price target slashed by almost 13%

It maintained its outperform rating, but analysts said supply chain checks in Asia remain suspect heading into the coming quarters, reflecting a softening consumer environment.

Still, Wedbush’s Dan Ives noted that demand for the core iPhone 14 Pro looks to be more stable than feared, which will make the overall landscape more resilient than Wall Street expects.

“[W]e believe baked into the stock is a massive amount of bad news ahead,” Ives wrote, adding that Apple is still a tech-favorite.

Still, there are more than 200 million iPhone units that haven’t been upgraded in four years, and that’s a key part of Apple’s underlying demand story. 

Ives pointed out, too, that the next iPhone model is expected to come out alongside an augmented reality headset, dubbed “Apple Glasses,” which should help the company remain a “Rock of Gibraltar name into 2023.” 

What’s your outlook for Apple stock this year? Tweet me (@philrosenn) or email me ([email protected]) to let me know.

In other news:

ussian President Vladimir Putin at Artifical Intelligence Journey Conference in Moscow, Russia, on November 24, 2022.

2. US stock futures are seesawing early Thursday, as investors weigh just how hawkish the Fed was in the minutes from its last meeting. Here are the latest market moves. 

3. On the docket: Constellation Brands, Walgreens Boots Alliance, and Helen of Troy, all reporting.

4. RBC recommends buying these 30 stocks right now. This batch of names are poised for returns in the first quarter of 2023. Strategists also broke down why it’s safe to bet on Facebook parent Meta this year.

5. Sam Bankman-Fried’s $470 million Robinhood stake is set to be seized by US authorities, an attorney said. The move would likely temporarily halt a four-way battle for the FTX founder’s stake. Read the full report.

6. Russia’s war revenue dropped by $15 million during the last week of 2022. Crude exports also fell to the lowest mark of the year in a sign that sanctions are having an impact on President Vladimir Putin’s warring nation.

7. Tesla stock is at a “fork in the road.” Wedbush analyst Dan Ives said Elon Musk must lead the EV maker through weakness in demand. He said that the stock has been “way oversold,” but Musk must outline a path as competition rises.  

8. The president of a real-estate firm shared her predictions for mortgage rates in 2023. She also broke down which regions will see the steepest price corrections and the type of properties that will have the largest spike in demand. 

9. Goldman Sachs recommends buying stocks in these 15 emerging markets. In the firm’s view, these countries offer upside for 2023 — and are set to outperform the US as earnings weaken in the new year.

10. “Everything is going down.” This hedge fund manager has returned 163% over the last year, and he’s anticipating more pain to come for stocks. This is how he’s laying bets for a rocky 2023.

Curated by Phil Rosen in Los Angeles. Feedback or tips? Tweet @philrosenn or email [email protected]

Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.

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FTX’s ex-top lawyer is reportedly cooperating with investigators, revealing details about what Sam Bankman-Fried did with customer funds

Business Insider 

FTX’s founder and ex-CEO Sam Bankman-Fried.

FTX’s ex-top lawyer has cooperated with US agencies investigating the crypto exchange, per Reuters.
Daniel Friedberg spoke about how Sam Bankman-Fried used customer funds to finance the FTX empire.
FTX’s ex-CEO is facing fraud charges, and billions of dollars of customer funds are missing.

FTX’s former top lawyer has cooperated with US authorities investigating the crypto exchange’s collapse and told them about how Sam Bankman-Fried’s handled customer funds, according to a Reuters report.

Daniel Friedberg, until recently the chief regulatory officer at FTX, met with more than 20 investigators on November 22, Reuters reported Thursday, citing a source familiar with the matter.

Friedberg shared his knowledge about the way Bankman-Fried used the billions of dollars of funds to finance his crypto group, per the report. He also spoke about conversations between FTX execs on that activity and gave insight on how FTX’s sister trading arm Alameda Research operated.

Since FTX collapsed in November, reports have emerged that billions of dollars in trading customer funds were funneled to Alameda to prop up the crypto hedge fund. Other reports have revealed unusual business practices, such as FTX having customers wire money to a fake electronics retailer — again, to ultimately support the trading arm.

New York prosecutors have set up an FTX Task Force to trace and recover the missing customer money, estimated to total over $2 billion at least. Meanwhile, Bankman-Fried has pleaded not guilty to the fraud and other criminal charges laid against him in US court.

In a now-deleted blog on FTX’s website in 2020, Bankman-Fried wrote that Friedberg was FTX’s legal advisor “from the very beginning,” and said he had been “with us through thick and thin,” per Reuters.

FTX’s former regulatory chief was willing to share information about the crypto exchange right after it filed for bankruptcy on November 11, the report said. He then requested FTX waive his attorney-client privilege so he could work with the authorities.

“I want to cooperate in all respects,” he told two FBI agents in an email at the time, seen by Reuters. 

Investigators from the Department of Justice, the FBI, and the Securities and Exchange Commission were at the meeting with Friedberg at the office of the US Attorney for the Southern District of New York in late November, Reuters said.

Friedberg and his lawyer, Telemachus Kasulis, and FTX did not immediately respond to Insider’s request for comment. The US agencies involved did not respond to a similar request.

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Study: Two-thirds of glaciers on track to disappear by 2100

Top News: US & International Top News Stories Today | AP News 

FILE – Chunks of ice float on Mendenhall Lake in front of the Mendenhall Glacier on Monday, May 30, 2022, in Juneau, Alaska. A study of all of the world’s 215,000 glaciers published on Thursday, Jan. 5, 2023, finds even if with the unlikely minimum warming of only a few tenths of a degrees more, the world will lose nearly half its glaciers by the end of the century. With the warming we’re now on track to get, the world will lose two-thirds of its glaciers and overall glacier mass will drop by one-third while sea level rises 4.5 inches just from melting glaciers. (AP Photo/Becky Bohrer)

The world’s glaciers are shrinking faster than scientists thought, with two-thirds of them projected to disappear by the end of the century at currentclimate changetrends, according to a new study. (Jan. 5)

The world’s glaciers are shrinking and disappearing faster than scientists thought, with two-thirds of them projected to melt out of existence by the end of the century at current climate change trends, according to a new study.

But if the world can limit future warming to just a few more tenths of a degree and fulfill international goals — technically possible but unlikely according to many scientists — then slightly less than half the globe’s glaciers will disappear, said the same study. Mostly small but well-known glaciers are marching to extinction, study authors said.

In an also unlikely worst-case scenario of several degrees of warming, 83% of the world’s glaciers would likely disappear by the year 2100, study authors said.

The study in Thursday’s journal Science examined all of the globe’s 215,000 land-based glaciers — not counting those on ice sheets in Greenland and Antarctica — in a more comprehensive way than past studies. Scientists then used computer simulations to calculate, using different levels of warming, how many glaciers would disappear, how many trillions of tons of ice would melt, and how much it would contribute to sea level rise.

The world is now on track for a 2.7-degree Celsius (4.9 degrees Fahrenheit) temperature rise since pre-industrial times, which by the year 2100 means losing 32% of the world’s glacier mass, or 48.5 trillion metric tons of ice as well as 68% of the glaciers disappearing. That would increase sea level rise by 4.5 inches (115 millimeters) in addition to seas already getting larger from melting ice sheets and warmer water, said study lead author David Rounce.

Hub peek embed (apf-science) – Compressed layout (automatic embed)

“No matter what, we’re going to lose a lot of the glaciers,” Rounce, a glaciologist and engineering professor at Carnegie Mellon University, said. “But we have the ability to make a difference by limiting how many glaciers we lose.”

“For many small glaciers it is too late,” said study co-author Regine Hock, a glaciologist at the University of Alaska Fairbanks and the University of Oslo in Norway. “However, globally our results clearly show that every degree of global temperature matters to keep as much ice as possible locked up in the glaciers.”

Projected ice loss by 2100 ranges from 38.7 trillion metric tons to 64.4 trillion tons, depending on how much the globe warms and how much coal, oil and gas is burned, according to the study.

The study calculates that all that melting ice will add anywhere from 3.5 inches (90 millimeters) in the best case to 6.5 inches (166 millimeters) in the worst case to the world’s sea level, 4% to 14% more than previous projections.

That 4.5 inches of sea level rise from glaciers would mean more than 10 million people around the world — and more than 100,000 people in the United States — would be living below the high tide line, who otherwise would be above it, said sea level rise researcher Ben Strauss, CEO of Climate Central. Twentieth-century sea level rise from climate change added about 4 inches to the surge from 2012 Superstorm Sandy costing about $8 billion in damage just in itself, he said.

Scientists say future sea level rise will be driven more by melting ice sheets than glaciers.

But the loss of glaciers is about more than rising seas. It means shrinking water supplies for a big chunk of the world’s population, more risk from flood events from melting glaciers and about losing historic ice-covered spots from Alaska to the Alps to even near Mount Everest’s base camp, several scientists told The Associated Press.

“For places like the Alps or Iceland… glaciers are part of what makes these landscapes so special,” said National Snow and Ice Data Center Director Mark Serreze, who wasn’t part of the study but praised it. “As they lose their ice in a sense they also lose their soul.”

Hock pointed to Vernagtferner glacier in the Austrian Alps, which is one of the best-studied glaciers in the world, but said “the glacier will be gone.”

The Columbia Glacier in Alaska had 216 billion tons of ice in 2015, but with just a few more tenths of a degree of warming, Rounce calculated it will be half that size. If there’s 4 degrees Celsius (7.2 degrees Fahrenheit) of warming since pre-industrial times, an unlikely worst-case scenario, it will lose two-thirds of its mass, he said.

“It’s definitely a hard one to look at and not drop your jaw at,” Rounce said.

Glaciers are crucial to people’s lives in much of the world, said National Snow and Ice Center Deputy Lead Scientist Twila Moon, who wasn’t part of the study.

“Glaciers provide drinking water, agricultural water, hydropower, and other services that support billions (yes, billions!) of people,” Moon said in an email.

Moon said the study “represents significant advances in projecting how the world’s glaciers may change over the next 80 years due to human-created climate change.”

That’s because the study includes factors in glacier changes that previous studies didn’t and is more detailed, said Ruth Mottram and Martin Stendel, climate scientists at the Danish Meteorological Institute who weren’t part of the research.

This new study better factors in how the glaciers’ ice melts not just from warmer air, but water both below and at the edges of glaciers and how debris can slow melt, Stendel and Mottram said. Previous studies concentrated on large glaciers and made regional estimates instead of calculations for each individual glacier.

In most cases, the estimated loss figures Rounce’s team came up with are slightly more dire than earlier estimates.

If the world can somehow limit warming to the global goal of 1.5 degrees Celsius (2.7 degrees Fahrenheit) of warming since pre-industrial times — the world is already at 1.1 degrees (2 degrees Fahrenheit) — Earth will likely lose 26% of total glacial mass by the end of the century, which is 38.7 trillion metric tons of ice melting. Previous best estimates had that level of warming melting translating to only 18% of total mass loss.

“I have worked on glaciers in the Alps and Norway which are really rapidly disappearing,” Mottram said in an email. “It’s kind of devastating to see.”

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Republican Freedom Caucus Pushes for New Committee to Investigate the Surveillance State

The Intercept 

In the proposed rules package for the new 118th Congress, the Republican Party wants to create a subcommittee to investigate law enforcement and surveillance agencies.

The pledge to form the new committee on the “Weaponization of the Federal Government” is one of the concessions the far-right Freedom Caucus is demanding of Rep. Kevin McCarthy, R-Calif., in exchange for supporting his bid to become speaker of the House. Rep. Marjorie Taylor Greene, R-Ga., has cited it as a reason to support McCarthy.

Freedom Caucus members routinely rail against the FBI’s investigations of President Donald Trump and [cut]what they describe as[/cut] excessive domestic surveillance. The “Weaponization of the Federal Government” committee would give them power to investigate the purported abuses under the auspices of the Judiciary Committee. Freedom Caucus members said they want to model the new body after the Church Committee that ran investigations into intelligence abuses in the mid-1970s, leading to significant reforms.

Democratic members of the House were quick to condemn the comparison of the “Weaponization” subcommittee with the legacy of Sen. Frank Church, the Idaho Democrat who led on intelligence reforms. Rep. Ro Khanna, D-Calif., who lauded the original Church Committee, warned that the rebranded one could be a distraction from passing bipartisan legislation to rein in the very agencies Republicans are probing.

“To compare these is a total misunderstanding of what the Church Committee did,” Khanna told The Intercept. “The question is, if we are going to focus on making sure the government isn’t engaged in surveillance, we should be engaged in passing the Internet Bill of Rights and engaged in passing legislation that will prevent that surveillance. I don’t want a committee that will start casting political aspersions on law enforcement agencies.”

“I don’t think there is any potential merit because it’s already tainted.”

There will be little Democratic buy-in for the panel, according to interviews with minority party members, who cast the committee as one interested merely in embarrassing Democrats. “I don’t think there is any potential merit because it’s already tainted,” said Rep. Raul Grijalva, D-Ariz. “The preface to this has been all the comments the Republican majority in the House have made relative to the FBI, relative to spying on Trump, relative to going through our mail and conspiracy theories. It’s already tainted. It has no value. It’s not a Church commission. It’s more of a McCarthy commission” — a reference to the notorious, and notoriously overzealous, investigations into communists run by Sen. Joseph McCarthy in the 1950s.

The proposed committee would effectively investigate the “deep state,” a term popularized by Trump devotees to refer to machinations of unelected security apparatuses, though the phrase traces its roots to left-wing civil liberties advocates, suggesting at least the potential for some trans-ideological collaboration. Republicans were once closely aligned with the FBI but many turned against the federal law enforcement agency following its investigation into collusion between Russia and Trump’s 2020 campaign. In August, dozens of federal agents raided Trump’s Mar-a-Lago estate and recovered classified documents taken from the White House. The former president and his supporters in Congress were enraged. In recent months, GOP lawmakers have also called for investigations into the FBI’s role in shaping social media discourse around revelations concerning Hunter Biden.

The outgoing chair of the Rules Committee, Rep. Jim McGovern, D-Mass., echoed the condemnation of comparisons between the new proposed committee and historical reform efforts: “I think it’s insulting to the Church Committee to compare this to that.”

The Church Committee oversaw sweeping investigations into agencies with vast surveillance powers including the CIA and FBI. The precursor to the Senate Select Committee on Intelligence, the Church Committee, along with its House counterpart the Pike Committee, helped bring to light LSD experiments, propaganda campaigns overseen by the CIA against unwitting U.S. citizens, widespread domestic phone surveillance, and assassination plots against foreign leaders.

Despite Democrats’ skepticism toward the “weaponization” committee, there are dozens of oversight issues where they could find common cause with Republicans. Sen. Chuck Grassley, R-Iowa, recently revealed revelations about the FBI’s mishandling of hundreds of sexual harassment complaints against employees. In October, The Intercept reported that the Department of Homeland Security’s efforts to combat “disinformation” could potentially lead to influencing news stories unfavorable to the agency by affecting their distribution.

Rep. Lauren Boebert, R-Colo., one of the House GOP members holding out for concessions from McCarthy, refused three attempts for comment, despite her fellow Freedom Caucus members’ eagerness to see the committee formed.

“We’ve got a lot of oversight to do, and I think there will be a lot of committees involved,” said Rep. Matt Gaetz, R-Fla., one of the most outspoken members challenging McCarthy for concessions. “This is probably a longer discussion. In the course of a hallway discussion, I’m not sure I can break down the finer points.” On Tuesday morning, McCarthy said that his opponents had demanded to lead the upcoming committee.

Greene, a Freedom Caucus member friendly to McCarthy’s bid, was focused on the sole issue of securing her preferred speaker’s leadership position. “I’m so excited about all those things, but we can’t do them until 19 people decide to vote for Kevin McCarthy,” she said.

Rep. Mike Quigley, D-Ill., a long-standing member of the House Intelligence Committee, cast doubt on the prospects for bipartisanship on the “Weaponization” committee. “It’s an indication that this isn’t going to be about accomplishing anything,” he said of the Republicans’ apparent partisanship. “I would predict there will be double-digit select committees and special new subs on existing committees. This is all about attacking and going on the offense and very little about what bills are we going to pass.”

Quigley suggested that the “Weaponization” committee would set up a formal structure for the Republican Party’s right flank to air its worst conspiratorial views. Quoting the late writer Hunter S. Thompson, Quigley joked, “When the going gets weird, the weird turn pro.”

The post Republican Freedom Caucus Pushes for New Committee to Investigate the Surveillance State appeared first on The Intercept.

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The cashless future is here. So is Big Brother.

Just In | The Hill 

Story at a glance

Two-fifths of Americans used no cash in 2022.

Paper currency and coins have downsides: they are unsanitary, inconvenient, costly to handle and easy to steal.

Credit and debit cards leave a valuable digital trace but that also means they are easy to track.

America may soon be poised to go cashless. Now, the nation must decide if ditching the dollar bill is a good idea.  

Two-fifths of Americans used no cash in 2022. Back in 2015, by contrast, fewer than one-quarter of consumers went cashless, according to Pew surveys. In a separate poll, three-fifths of consumers told Gallup they used cash only on occasion last year, twice the share of five years ago.  

Paper currency and coins are unsanitary, inconvenient, costly to handle and easy to steal. Criminal enterprises thrive on the portable anonymity of the hundred-dollar bill. Cashless transactions solve those problems, advocates say. They also allow Big Brother to track the American consumer’s every move. 

“When you pay cash, I give you money, you give me a good, end of story,” said Jay Stanley, a senior policy analyst at the ACLU. “If you’re using your credit card for all of your transactions, then data is being collected about an enormous range of your activities, including medical conditions, political donations, sexual activities, how much liquor you buy, how many cigarettes you buy.” 

In left-leaning New York, Philadelphia and San Francisco, city leaders have enacted laws that require businesses to accept cash, ostensibly to protect the “unbanked,” a small but significant share of citizens who rely on currency.  

New York’s cash mandate seeded an epic battle between city regulators and Van Leeuwen, a chain of ice cream shops known for $6.50 scoops and cashless operations. Company owners held out for nearly two years before changing the rules last fall. 

That was but one skirmish in a larger battle over the future of cash in American society. 

Consumers used cash for 20 percent of all payments in 2021, down from 31 percent in 2016, according to the Federal Reserve. In place of cash, shoppers favored the credit card (28 percent) and debit card (29 percent). 

“People have literally been changing the way they pay for goods and services,” said Lee Rainie, director of internet and technology research at Pew.  

COVID-19 hastened the cashless trend. The pandemic inspired fears, largely misguided, that the virus might spread on currency. Many consumers stopped carrying cash, spurring a national coin shortage.  

“I think it’s very much like the jump in e-commerce we saw during the pandemic,” said Ted Rossman, a senior industry analyst at Bankrate, the financial services company. “I think we’re going to continue to see a slow evolution away from cash.” 

Much of the nation hasn’t looked back. Three-fifths of wealthier Americans, those with six-figure household incomes, told Pew pollsters they used no cash in a typical week in 2022. More than half of the under-50 demographic told Pew they no longer worry about carrying cash.  

“There are good reasons why people change the way they pay, and it has to do with a combination of benefits to consumers and benefits to businesses,” said Todd Zywicki, a law professor at George Mason University who studies consumer finance.  

“When you ask retailers who’ve gone cash-free, they’re primarily small retailers, and a lot of them are pretty straightforward: ‘After my store got robbed the fifth time, I decided it wasn’t worth taking cash.’” 

Accepting bills and coins in 2022 is easier for a large, established business, harder for a small startup. “You have to have safes,” Zywicki said. “You have to have security cameras. You have to have a certain kind of cash register.” 

And while COVID-19 may not spread on dollar bills, paper currency is, in fact, filthy. Researchers have found scores of microorganisms on folding money, including microbes found in mouths and on genitalia. One analysis of dollar bills from different American cities found traces of cocaine on most of them.  

Zywicki likens the cashless trend of today to the decline of personal checks 15 or 20 years ago. American consumers used to routinely write checks to cover groceries and car repairs and appliance purchases. That changed with the new millennium, when consumers and merchants ditched checks for debit cards. Between 2000 and 2012, the number of transactions covered by checks declined by more than half.   

“Debit cards basically replaced checks,” Zywicki said.  

Yet, even in 2022, some Americans cling to cash. 

Older Americans still use cash for roughly one-quarter of purchases, according to Fed data. Low-income families, those earning less than $25,000 a year, rely on cash for more than one-third of their purchases.  

“There’s still a significant chunk of Americans who are either unbanked or underbanked,” Stanley said. “Underbanked” consumers have bank accounts but rely on overpriced alternatives such as payday loans and check-cashing shops.  

Credit card companies typically charge transaction fees that range from 1 to 3 percent of the purchase price. Together, Visa and Mastercard collected $138 billion in service fees in 2021. They are among the most profitable companies in the world.  

Shops generally pass that cost on to the consumer. To critics of the credit industry, those fees amount to a tax. “Can you imagine if we had a 1 to 3 percent national sales tax, what we could do with that money?” Stanley said.  

When shops build those fees into their prices, Stanley reasons, the credit system effectively penalizes the poor, who pay fees for cards they do not own.  

Stanley and left-leaning civic leaders fall on one side of the whither-cash debate. Zywicki falls on the other. 

“The first thing we should focus on is not trying to prop up cash,” Zywicki said. “What we should focus on is trying to facilitate access to bank accounts for anyone who wants one.” 

Take note, however, that the George Mason scholar shares the ACLU’s concern over shrinking privacy in financial transactions. 

To illustrate the vulnerability of consumer data, in a widely circulated 2019 article, a Washington Post columnist purchased a pair of bananas at a big-box retailer with his credit cards.  

“You might think my 29-cent swipe at Target would be just between me and my bank,” he reported. “Heavens, no. My banana generated data that’s probably worth more than the banana itself. It ended up with marketers, Target, Amazon, Google and hedge funds, to name a few.” 

Credit card companies and retailers conspire to sell consumer data to advertisers, who use it to predict — and even to subtly influence — the shopper’s next move. In this transaction, the consumer is the product. 

To counter the data spies and retain a modicum of free will, consumer advocates say, read the fine print on your card agreement, consider paying in cash, use a robust ad blocker and avoid clicking on anything that looks like a promotion. 

“All this data, it’s not empowering you, it’s empowering somebody else,” Stanley said. 

Soon, even the federal government may be able to harvest consumer data. Late last year, the Fed announced a pilot program for a central bank digital currency.  

The digital dollar would offer a federal alternative to cryptocurrency, backed by the government. Citizens could open a bank account directly with the Fed, accessing digital funds on an app or a prepaid card, said David Waugh, managing editor at the American Institute for Economic Research, in a column for The Hill.  

“Cash remains our strongest tool to promote financial inclusion while preserving privacy and security, and new digital tools should emulate it– not replace it,” said U.S. Rep. Jesús “Chuy” García, an Illinois Democrat, in support of legislation to develop a digital dollar.  

But a digital dollar would also give the government “direct control over citizens’ bank accounts,” Waugh writes. China’s government has touted its own digital currency as a means to control its citizens. 

“Yes, it’s obnoxious when Mastercard sells your data,” Zywicki said. “But in my view, if we empower the government to be able to issue programmable, digital currency, I think that’s a very dangerous thing.” 

​Arts & Culture, Changing America, Enrichment, money Read More 

Lawmakers say McCarthy Speaker fight portends debt ceiling crisis

Just In | The Hill 

The messy, drawn-out battle over electing the next Speaker is raising the danger of a debt limit crisis later this year, lawmakers in both parties warn.  

Conservative rebels in the House are demanding that the next Speaker, whether it’s Rep. Kevin McCarthy (R-Calif.) or someone else, make a stand against passing a clean debt limit increase, which would set up a major fight with Senate Democrats and President Biden.  

Congress has successfully avoided a debt limit crisis since 2011, which was also the first year of a new House GOP majority.  

That year, the standoff between the Republican-controlled House and the Democratic-controlled Senate and White House brought the federal government within days of defaulting on its debt obligations.  

Lawmakers say the nasty battle over electing a new Speaker portends another potential crisis later this year.  The Treasury Department won’t say when exactly the debt limit will expire, but the Committee for a Responsible Federal Budget estimates it will need to be raised sometime after July.

Conservative rebels who blocked McCarthy’s election as Speaker on six consecutive ballots say the Speaker must insist on using the debt limit as leverage to enact major spending reforms — something that Senate Democrats have dismissed as a non-starter over the past decade.  

“Us 20 want changes, and we’re going to stay here until we get it,” Rep. Ralph Norman (R-S.C.) told reporters Wednesday. “Could McCarthy all of a sudden morph into a fiscal conservative? We’ll see.” 

“Is he willing to shut the government down rather than raise the debt ceiling? That’s a non-negotiable item,” he added.  

A group of seven conservatives opposed to McCarthy’s bid to become Speaker circulated a “Dear Colleague” letter last month demanding that the next Speaker “commit to not raising the debt ceiling without a concrete plan to cap spending and operate under a budget that balances in 10 years.” 

Senate Republicans, however, warn that debt ceiling legislation with spending caps isn’t going to pass the Democratic-controlled Senate, setting up the two chambers for a stalemate that could put the nation’s credit rating at risk or the federal government on the verge of default.  

“That’s not going to get 60 votes. That’s math,” said a Senate GOP aide, who predicted that “it’s going to be a challenge” to pass legislation to raise the debt limit later this year.  

McCarthy said in October that he would be willing to use the debt limit legislation as leverage to force spending cuts, but conservatives have doubts about how hard he would push it when the stakes are high and default is a real possibility.  

But the bruising battle over electing a Speaker, which has played out over two days, has lawmakers in both parties worried that whoever winds up leading the House Republican majority this year will have a hard time passing debt limit legislation or regular spending bills given the staunch opposition of a small group of conservatives and the party’s slim five-seat majority. 

Sen. John Cornyn (R-Texas), an adviser to the Senate GOP leadership team, said raising the debt limit, which is expected to expire this summer, “will probably be the single biggest challenge the House will have.” 

Asked about the prospect of passing a debt limit bill that caps spending or balances the budget in 10 years, Cornyn replied, “Could you get 60 votes in the Senate for that?” 

“We’ll see how the story ends. I don’t know,” he added.  

Rep. David Joyce (R-Ohio) suggested the messy and protracted battle over electing Speaker doesn’t bode well for getting must-pass legislation done later this year.  

“You’re looking at a preview of coming attractions,” he quipped.  

Rep. Hal Rogers (R-Ky.), a senior member of the House Appropriations Committee, predicted that passing debt limit and spending legislation will be a heavy lift this year and said the possible outcome is hard to predict while the Speaker’s race remained in limbo.  

“It’s impossible to know at this point. It’s always hard,” he said, predicting the debt limit “will be” a big fight this year.  

Rep. Pete Sessions (R-Texas) said clean debt limit legislation won’t fly with conservatives this year — even though congressional leaders haven’t used it as a vehicle to pass fiscal reforms since Congress passed the 2011 Budget Control Act (BCA) as a way to end that year’s debt limit crisis.

“Who says it’s clean? That’s their point. They don’t want clean. They want constructive things like we’ve done in the past,” he said, referring to the BCA, which imposed caps on discretionary spending and established sequestration, the automatic reduction of certain mandatory spending programs. 

A Senate Democratic aide on Tuesday called the BCA “the worst piece of legislation passed” in recent memory, signaling that Senate Democrats have no appetite for agreeing to a major spending cut in a deal to raise the debt limit.  

Senate Majority Leader Charles Schumer (D-N.Y.) floated the idea of raising the debt limit in last year’s lame-duck session while Democrats still controlled the House, but Senate Minority Leader Mitch McConnell (R-Ky.) shot down the idea.  

Now Democrats warn Congress could be headed for a fiscal disaster later this year.  

“It’s very troubling,” said Rep. Lloyd Doggett (D-Texas) of the chances of a debt limit crisis later this year.  

“We put at risk the economic future not only of our country but the world,” he said.  

Doggett said whether McCarthy is elected as a weak Speaker or someone else steps in to fill the top leadership job, it’s likely “we’re going to have brinkmanship on [the debt limit] or shutting down the government.” 

Doggett said that “there certainly is that danger” that 2023 could turn into a reprise of 2011, when the deadlock over raising the debt limit dragged on for months and took the country so close to default that Standard and Poor’s downgraded the nation’s credit rating.  

McCarthy met with a group of his conservative opponents Wednesday evening in a last-ditch effort to persuade them to flip their votes, but he will have to make a strong commitment on using the debt limit to play hardball with the Senate to reduce the deficit if he is to sway them.   

“Obviously spending is a very important issue, especially to conservatives like me, and that has been part of our conversations,” said Rep. Marjorie Taylor Greene (R-Ga.), a Donald Trump-allied conservative who is supporting McCarthy’s bid to become Speaker. 

Mychael Schnell and Al Weaver contributed.  

​Senate, News, David Joyce, Debt crisis, Hal Rogers, House Speakership vote, Kevin McCarthy, Pete Sessions Read More 

Lobbyists relish return to Capitol after years of COVID restrictions

Just In | The Hill 

Lobbyists are celebrating their return to the Capitol as it reopens to the public, ending nearly three years of pandemic restrictions that severely limited physical access to lawmakers.

The decision by Capitol officials to end strict rules for visitors on Tuesday, which followed pleas from the lobbyists and House GOP leaders, will boost K Street’s visibility on the Hill in time for the new Congress. 

Thousands of lobbyists roamed the Capitol campus this week without an appointment or congressional escort for the first time since March 2020, when Congress implemented COVID-19 restrictions. 

“It really was a very nostalgic, almost emotional feeling, truly,” said Brian Pomper, a partner at Akin Gump Strauss & Feld and former Democratic Senate aide. “Talking to other people, I think they felt similarly that it just was so good to be back, and a reminder of just how important face-to-face interaction is for this business, which is very much a people business in many ways.” 

The pandemic restrictions, which were extended after last year’s Capitol attack, made it difficult for lobbyists to meet with lawmakers in their offices. Congressional aides and K Street representatives increasingly relied on Zoom calls because getting people into Capitol buildings required too much time and planning. 

The restrictions prevented lobbyists from loitering in Capitol buildings — taking away the chance encounters that hired guns often lean on to build connections with members of Congress — as well as traveling between offices to attend multiple meetings. 

Now, lobbyists are once again enjoying largely unfettered access to lawmakers and their staffers, something they had become accustomed to before the pandemic. 

“I think it’s always important for lawmakers and their staff to see your face and really hear you tell your story in person. It shows that with all the different draws on people’s time, that you want to make the time to come in and advocate for your issues. So, I do think it will have an impact,” said Carolyn Coda, a lobbyist at Invariant who specializes in taxes and financial services.

“If you want to really go deep in the weeds on an issue, being able to do that in person is going to be really advantageous for those that make the time to do it,” she added.

With pandemic restrictions no longer in place, C-suite executives and other high-profile clients will be more likely to meet with lawmakers in person, potentially boosting their influence, lobbyists said.

“More frequent client visits will probably be the name of the game now,” said Aaron Cutler, a former aide to House GOP leaders who heads lobbying at Hogan Lovells. 

Lobbyists said that the restrictions made it particularly difficult to conduct fly-ins, where hundreds or even thousands of individuals from a particular industry converge on Capitol Hill to meet with lawmakers. 

Some companies and trade associations held their fly-ins at other venues, such as Nationals Park, because the Capitol restrictions made the logistics too complicated.

“I think all of us are thrilled that we are finally returning to some normalcy after more than 1,000 days of limited access,” said Alex Vogel, a former Senate GOP aide who heads the Vogel Group. 

Lobbyists expect to keep relying on Zoom for its time-efficiency, particularly for meetings with congressional staffers, while relying more on in-person gatherings with members. 

Virtual meetings, meanwhile, didn’t stop Washington lobbying firms from raking in record-breaking earnings last year. 

The most profitable run in K Street’s history came under the COVID-19 restrictions, which also coincided with massive new government spending and Democratic control of Washington, both of which came with new opportunities and threats for deep-pocketed companies.

Total federal lobbying spending surpassed $3 billion through nine months of 2022, according to nonpartisan research group OpenSecrets, putting it on track to smash previous records. The vast majority of that spending comes from large corporations and their trade associations. 

House Sergeant-at-Arms William Walker announced last week that members of the public would be able to visit congressional offices without an official appointment or escort, according to a memo to lawmakers obtained by The Hill. 

The National Institute for Lobbying and Ethics, a trade association representing lobbyists, pushed those changes in meetings with lawmakers and the Capitol Police, whose leaders wanted to address staffing shortages before reopening the Capitol. 

“If not for our profession, temporary rules might have become permanent,” Paul Miller, the group’s board chairman, wrote in a blog post Wednesday.

Miller credited House Republican Leader Kevin McCarthy (Calif.) for crafting a reopening plan and spearheading the effort to lift restrictions. 

Shortly after the midterms, McCarthy wrote a letter to Capitol officials urging them to reopen Congress to visitors by the new year, arguing that Americans “have been restricted from exercising their constitutional right to petition the first branch of government” for several years. 

“Reopening the House is more than just a symbolic measure — a government of the people, by the people, for the people requires interaction with the people,’’ wrote McCarthy, who now finds himself locked in a tough fight to be the next Speaker. “It is for this reason that we must welcome Americans from across the nation back to the Halls of Congress.”

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Trump’s abortion remarks underscore political peril for GOP

Just In | The Hill 

Former President Trump’s criticism of hard-line abortion opponents is laying bare the tension over the issue within the GOP as the party looks to regroup after a bruising midterm election. 

On Monday, Trump accused Republicans, particularly those against abortion with no exceptions, of underperforming in the election. 

“It wasn’t my fault that the Republicans didn’t live up to expectations,” Trump wrote on his social media platform Truth Social. “I was 233-20! It was the ‘abortion issue,’ poorly handled by many Republicans, especially those that firmly insisted on No Exceptions, even in the case of Rape, Incest, or Life of the Mother, that lost large numbers of Voters.” 

The attack drew a response from the anti-abortion group Susan B. Anthony Pro-Life America, which was amplified by Trump’s former Vice President Mike Pence, underscoring the divide within the party over how to message on the issue. 

“There was ALSO a profound midterm lesson for future federal candidates: those who adopt the Ostrich Strategy on abortion lose,” the group said in a statement.

Terry Schilling, the president of the conservative American Principles Project, lambasted Trump’s statement as “stupid” in an interview with The Hill. 

“Ultimately I thought it was so unlike Trump,” Schilling said. “First of all, it’s not true. The candidates that he endorsed that lost all went with this strategy of deflecting and the ostrich method.”

At the root of the back and forth is the fact that Democrats have successfully used the abortion issue as a galvanizing force in the wake of the overturning of Roe v. Wade last summer. 

​​“The problem is either when candidates stick their head in the sand and don’t know how to deal with it or don’t want to talk about it,” one Republican strategist told The Hill. 

Conservatives point to a number of Senate candidates in tough races, such as Mehmet Oz, who lost to now-Sen. John Fetterman (D) in Pennsylvania in November. 

“All throughout the campaign Fetterman is accusing Dr. Oz of being an extremist on abortion,” Schilling said. “And Dr. Oz’s strategy, and this is not just him it was most of the candidates that lost, his strategy was to deflect, not address that claim, and then immediately shift it over to inflation. That’s a losing strategy.” 

There were other Trump-endorsed candidates that leaned in on abortion restrictions and ended up losing their races, including former Georgia Senate candidate Herschel Walker, who said he opposed exceptions. Additionally, former Pennsylvania gubernatorial candidate Doug Mastriano and Michigan gubernatorial candidate Tudor Dixon voiced opposition to exceptions and lost their races. 

Of course, there are also other factors as to why these candidates lost. Whether abortion was the main reason, or whether it was due to other factors like flawed candidates or ties to Trump, is a matter of debate. 

Indeed, Senate Minority Leader Mitch McConnell (R-Ky.) said last month that while abortion may have galvanized some support for Democrats, the GOP’s main problem was candidate quality. 

Throughout the midterm campaign, Republican candidates leaned on the three-fold strategy of focusing on rising inflation, crime and the flow of migrants over the southern border. 

As the smoke has cleared in the months since the midterms, more Republicans, including Republican National Committee Chair Ronna McDaniel, argue that candidates could have mirrored their Democratic opponents by taking a stronger approach on the issue.

Conservatives lay blame on the GOP’s leadership on Capitol Hill, arguing that they have set the tone for what they say is the party’s less-than-aggressive strategy on abortion. 

“When I talk about leadership, I’m not talking about the RNC,” Schilling said. “I’m more talking about McConnell and a lot of these House leaders who refuse to have any votes that put Democrats on the defense.” 

McConnell has thrown cold water on the idea of a national abortion ban, arguing that the issue should be dealt with at the state level. Anti-abortion advocates have strongly pushed back against that notion. 

“Don’t say it’s just up to the states now,” said Marilyn Musgrave, vice president of government affairs at the Susan B. Anthony List. “No, it’s up to the people and their elected representatives and that includes federally.” 

“Our candidates need to point out how extreme the other side is,“ she added. 

Many anti-abortion proponents say their best-case scenario would be a national 15-week ban on the procedure.  

“The winning strategy is endorsing an aggressive 15-week bill with exceptions,” Schilling said. 

Still, Republicans say the party needs to find its footing on the issue ahead of 2023’s off-year elections and the presidential election in 2024. 

“We’re the pro-life party, we’ve been the pro-life party,” said the GOP strategist. “How do you not know how to talk about it? We’ve been running on this issue for decades.” 

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