31 January 2024

Daily Newsletter

Delaware Court Voids Musk's $56B Tesla Pay Package

The Facts

  • On Tuesday, a Delaware judge annulled the $56B pay package Tesla awarded to Chief Executive Officer Elon Musk in 2018, ruling that the company's board had failed to justify the "unfathomable" sum.

  • In striking down his "excessive" compensation, Judge Kathaleen St J McCormick questioned whether Tesla could establish that the money was "necessary to retain Musk and achieve its goals."


The Spin

Narrative A

Elon Musk joined Tesla at a time when the company was in deep crisis. He worked almost around the clock to fix the problems at the now-iconic electric vehicle manufacturer. Even when he testified in court in November 2022, the company had achieved 11 of the 12 benchmarks set before Musk to fulfill his pay package deal. The pay, though it may seem gigantic, is fully justified.

Narrative B

Tesla's company board needs a few independent directors who could apply fair standards to initiate the restructuring of Musk's exorbitant pay package. Musk may argue that the firm hasn't lost anything since he hasn't exercised his stock option, but his salary is a disservice to shareholders and the firm must address the governance issues that led to this situation.

Nerd narrative

There's an 11% chance that Elon Musk will become the first trillionaire, according to the Metaculus prediction community.

See sources

Rep. Cori Bush Reveals Investigations Into Security Spending

The Facts

  • The US Dept. of Justice (DOJ) has begun investigating US Rep. Cori Bush's (D-Mo.) financing of private security services. The investigation, sparked by a lawsuit by the Foundation for Accountability and Civic Trust, is looking into her decision to hire her husband as part of her security detail and pay him with campaign funds.

  • In her statement confirming the investigation, Bush claimed that her use of campaign funds on security services was "permissible" and in compliance "with all applicable laws and House rules." She cited "relentless threats" to her "physical safety and life" as justification for the expenditure. She further stated that her husband's employment within her security team was "at or below a fair market rate."


The Spin

Republican narrative

The hypocrisy and irony of Cori Bush incessantly demanding for police to be defunded while paying hundreds of thousands for private security is untenable. Bush has previously argued that it's time for people to"suck it up" and defund the police — it's time for her to face the consequences of the illegal abuses of her government office.

Democratic narrative

Cori Bush — like many members of the female- and minority-led Squad — continues to be the target of dangerous threats and incessant criticism from the far right. Paying family members a fair price for services using campaign finance is legal. This brings to question whether she would face such scrutiny from the right if she hadn't been a leader in the Black Lives Matter movement.

Nerd narrative

There's a 50% chance that at least 14 percent of black voters will vote for a Republican president in the 2024 US presidential election, according to the Metaculus prediction community.

See sources

Reports: Zelenskyy Might Still Replace Top General

The Facts

  • Following rumors that Valerii Zaluzhnyi, commander-in-chief of Ukraine's Armed Forces, was dismissed earlier in the week — prompting denials from the Ukrainian president's office — new reports in Western media have suggested that Pres. Volodymyr Zelenskyy may still be preparing to sack the army leader.

  • Speculation started to swirl when Zaluzhnyi, who's been in the role since July 2021, was summoned for a meeting with Zelenskyy on Monday. Reports about his alleged dismissal soon started to appear in a number of prominent Ukrainian news outlets and other media.


The Spin

Narrative A

Zaluzhnyi is a widely trusted general and has commanded Ukraine's Armed Forces since before the Russian invasion. Losing a competent, respected, and combat-tested leader at a time when the country is hanging on for territory would be a colossal mistake and one that should be avoided. No one is more suitable for the job than him.

Narrative B

While Zaluzhnyi is a trusted leader, reports suggest that disagreements between Zelenskyy and him date back to the spring of 2022 and have again flared in recent weeks. Though sacking him may be unpopular, the decision to fire him needs to be taken as Ukraine cannot have a situation where its military and political leadership are not coordinated.

Nerd narrative

There's a 68% chance that Volodymyr Zelenskyy will be re-elected president in the next Ukrainian elections, according to the Metaculus prediction community.

See sources

UNICEF Touts 'Game-Changing' Nutrition Pill for Africa

The Facts

  • UNICEF has been trialing a new all-in-one nutritional supplement that combines 15 vitamins and minerals in Nigeria, Ethiopia, and Rwanda to address childhood malnutrition as well as malnutrition during pregnancy, which can lead to several adverse outcomes including stunting and below-average growth in children.

  • This comes as, since the COVID pandemic outbreak, the number of pregnant and breastfeeding women and girls affected by severe malnutrition has reportedly spiked from 5.5M to 6.9M. Delivered in multiple forms, the multiple micronutrient supplements are customized to provide optimal amounts of essential ingredients.


The Spin

Pro-establishment narrative

Due to war and climate change, sub-Saharan Africa is suffering the worst malnutrition crisis in the world, with tragically high numbers of children suffering from rapid weight and muscle loss and stunted growth. Systems must be put in place to better detect these ailments, after which these issues can be solved when the international community provides them with the necessary foods or supplements to grow properly and thrive.

Establishment-critical narrative

Climate change isn't causing regional conflicts and famines. In reality, it's the West and its nongovernmental organizations, international organizations, and propaganda outlets that are instigating civil strife. When governments in Africa refuse to play along with the likes of NATO and the US, the West responds by stirring up conflict which results in the tragedies we see in the news today. Real solutions require addressing these deep systemic issues.

Nerd narrative

There's a 15% chance that there will be fewer than 375M people in extreme poverty by 2030, according to the Metaculus prediction community.

See sources

France: 18 Arrested as Farmers Blockade Vegetable Market

The Facts

  • French police on Wednesday arrested 18 people for "interfering with traffic" after protesting farmers blocked the Rungis wholesale food market near Paris — a major supply point for the 12M residents of the French capital region.

  • An additional 200 to 300 tractors coming from the southwest were blocked by police along the A6 highway leading to Rungis, with police checkpoints deployed around the market.


The Spin

Pro-establishment narrative

These protesters have genuine grievances that must be tackled, but the growing threat of violence is also a cause for worry. French farmers mean it much more than their peers in other countries when they warn of "direct action," and the size of the protests this time around is ominous. This is despite the government making the right promises, including protections against imports.

Establishment-critical narrative

The government is not meeting the farmers' needs, this protest enjoys widespread grassroots support — 89% according to one estimate — even from outside the farming circle. The farmers' call to save the rural way of life is resonating with a wide section of French society. Even 81% of the ruling party supports this movement, showing popular disdain for the new prime minister and his policies.

Nerd narrative

There's a 5% chance that Emmanuel Macron will cease being President of France before 2027, according to the Metaculus prediction community.

See sources

Putin Challenger Submits Bid to Run for Russian President

The Facts

  • A prominent critic of Russian Pres. Vladamir Putin, Boris Nadezhdin, says he has collected enough signatures to qualify for Russia's upcoming presidential election.

  • The former member of parliament, who has become well-known for his critiques of Russian President Vladimir Putin and his calls for an end to Russia's invasion of Ukraine, announced on Wednesday that he had received the required 100K signatures needed to be considered.


The Spin

Establishment-critical narrative

Despite his overwhelming outpouring of support, it would be surprising if Nadezhdin isn't barred from running for president, given Putin's history of persecuting political rivals and shutting down any genuine political opposition. Democracy in Russia is performative, as no candidates actually capable of beating Putin are allowed to run — something that must change if Moscow wants to align with the rules-based international order.

Pro-establishment narrative

None of the other candidates campaigning against Putin stand any chance due to the president's current popularity. All of Russia is united in favor of this longstanding successful leader. At times of turmoil, like Russia being at war with Ukraine, it's especially important that the Russian people come together and vote for stability in the face of a threatening, hegemonic West.

Nerd narrative

There's a 50% chance that Vladimir Putin will cease to hold the office of President of Russia by October 2028, according to the Metaculus prediction community.

See sources

Oregon Declares State of Emergency Over Fentanyl Crisis

Photo: Unsplash

The Facts

  • Oregon Gov. Tina Kotek, alongside the Mayor of Portland Ted Wheeler and Multnomah County Chair Jessica Vega Pederson, declared a 90-day state of emergency in downtown Portland on Tuesday over concerns about the drug fentanyl. The declaration will see all three levels of government allocate resources and establish a "command center" to address the issue.

  • The command center will connect drug addicts with first responders and give them access to resources, including drug treatment centers, behavioral health doctors, and food benefits. The Portland police will also partner with the state police in patrolling the city's downtown for sales of fentanyl.


The Spin

Democratic narrative

The health and safety factors at play have never been lost on the government, but the rate at which this drug has infected the streets has been difficult for everyone to catch up with. The danger of fentanyl is unlike any other drug, which is why each level of government in the state has been developing coordinated programs to combat the issue. This emergency declaration is Oregon's strongest anti-fentanyl effort yet, and it will also be the most impactful.

Republican narrative

All of the Democrats' favorite policies have come together to create this tragedy. After the city defunded the police in 2020, drug use and homelessness skyrocketed, prompting them to increase the police budget by over $5M a year later. And after they decriminalized drugs, both drug addiction and overdose deaths soared through the roof. This is a manmade crisis that could've been avoided if the state, county, and city governments had chosen common sense over politics.

See sources

US Senate Questions Top Social Media Execs on Child Safety

The Facts

  • Executives from the five leading social media companies Wednesday testified about child-safety protection measures on their respective platforms before the US Senate Judiciary Committee.

  • With the Chief Executive Officers of Meta, X, TikTok, Snap, and Discord in front of his committee, Sen. Dick Durbin (D-Ill.), the committee chairman, in his opening remarks said the companies are "responsible for many of the dangers our children face online" and he criticized them for their "failures to adequately invest in trust and safety."


The Spin

Narrative A

Congratulations are due to the bipartisan group of senators who are taking on this issue and confronting these CEOs who are profiting off the exploitation of children. Wednesday’s hearing was a step in the right direction. Still, much more needs to be done to protect children from the dangers of social media exploitation because too often these platforms have placed profit above safety.

Narrative B

These CEOs are truly sorry for any harm their platforms have caused. Many families have dealt with unthinkable suffering, but as studies have been released to help better mitigate the harms, the platforms are doing what they can to implement controls and tools to make their sites as safe as possible. More will be done moving forward to provide security for kids and improve industry standards.

Nerd narrative

There's a 20% chance that TikTok will be sold to a US entity before 2025, according to the Metaculus prediction community.

See sources

Israeli Official: Hostage Deal Could Move Ahead

The Facts

  • An unnamed Israeli official told NBC on Wednesday there are "strong indications" that a proposal regarding the phased release of Israeli hostages and a weeks-long ceasefire in Gaza will soon move ahead. However, the proposal, which is still being worked on, must be approved by the ruling cabinet, after which the Israeli public would have 24 hours to contest it before it becomes official policy.

  • As negotiations reportedly progress, US Secretary of State Antony Blinken asked the State Department to review possible US options for the recognition of a Palestinian state once the war in Gaza ends, according to two US officials. US policy, which hasn't changed, has traditionally been to only support the recognition of a Palestinian state as a result of direct negotiations between Israel and the Palestinian Authority.


The Spin

Pro-Palestine narrative

Israel is losing its war in Gaza. After over three months and over 26K dead Palestinians, Israel has failed to release hostages via military operations, to kill Hamas' top leaders, or to create conditions advantageous to ending this long drawn-out conflict. Even then, if Israel did manage to achieve the majority of its war goals, it still would be left without a clear plan of action for the day after the war. Destroying a group like Hamas is a fool's errand, and Netanyahu has dug Israel into a hole that it will have a tough time climbing out of. Israel should accept a comprehensive ceasefire.

Pro-Israel narrative

Though, of course, this war has not been easy, Israel has made steady progress in Gaza, first neutralizing Gaza City before moving on to other population centers like Khan Younis. Israel has substantially degraded Hamas' military capabilities and leadership and even partially degraded elite Hezbollah units stationed along Israel's northern border. Indeed, as Israel's enemies should recognize, Israel's raw military power should not even be up for debate, and the country will fight and negotiate as it sees fit to achieve its goals.

See sources

US Fed Holds Rates Steady, Not Yet Ready for Cuts

The Facts

  • The US Federal Reserve announced on Wednesday that it would hold interest rates steady, signaling that it would abandon its policy of continued rate hikes to bring inflation down to its goal of 2%. However, the Fed also poured cold water on hopes that it would start cutting rates for the first time in years.

  • The Federal Open Market Committee (FOMC) met for the first time this year and wrapped up its two-day meeting by releasing a statement that removed language about rate hikes.


The Spin

Establishment-critical narrative

Thankfully, the Fed seems to be moving beyond its overly hawkish policy of nonstop rate hikes, but instead of keeping rates constant and stalling the economy until inflation reaches 2%, it should cut interest rates immediately and allow the economy to grow. While some say the Fed is being moderate in its current approach, the fact remains that rates are still at a year high. The Fed’s policy has done little to bring down inflation, and any cool-down is due to natural economic cycles.

Pro-establishment narrative

The Fed has taken a deliberate approach to its rate-setting policy, and it seems like it has moved past its series of rate hikes. However, the Fed is rightfully wary of decreasing key rates as soon as the economy gets stronger. While some investors may get frustrated by this approach, the Fed’s patience has allowed the economy to continue growing at a stable rate while also slowing down rampant inflation. There are many moving parts that factor into rate decisions, and the Fed is prudently waiting for the economic picture to become clearer.

Nerd narrative

There's a 50% chance that the US Federal Funds Rate will be 4.9% or lower on May 31, 2024, according to the Metaculus prediction community.

See sources

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