Thursday, December 15, 2022

Transgender lawmaker hopes her presence brings understanding


Zooey Zephyr, right, attends a legislative training session at the state Capitol in Helena, Mont., on Nov. 16, 2022. Zephyr, who is one of the first two transgender candidates elected to the Montana Legislature, says she hopes her presence will help fellow lawmakers better understand the trans community and lead them to avoid proposing legislation that can legitimize violence against the transgender community.
 (Thom Bridge/Independent Record via AP) (ASSOCIATED PRESS)Less

AMY BETH HANSON
Tue, December 13, 2022 

HELENA, Mont. (AP) — Zooey Zephyr worked behind the scenes during Montana’s 2021 legislative session to oppose an ultimately unsuccessful effort to ban transgender minors from receiving gender-affirming health care, including puberty blockers, cross-sex hormones and surgery.

When the 2023 session starts next month, she'll face a similar challenge after a Republican lawmaker recently revealed he'll run the proposal again. The move comes as GOP lawmakers nationwide are expected to continue to push for limits on transgender rights.

This time, though, Zephyr will have a seat at the table. And a vote.

Zephyr and SJ Howell are the first two openly transgender people to be elected to the Montana Legislature. They are among a record 10 transgender lawmakers who will be serving next year in state legislatures in Colorado, Delaware, Minnesota, New Hampshire, Vermont and Virginia, according to the LGBTQ Victory Fund. The first openly transgender lawmaker in the United States took office in 2018.

It’s part of a larger movement in which LGBTQ people are being elected in record numbers. At least 519 LGBTQ candidates won elective office this year, in positions ranging from school board up to Congress and governor, according to the Victory Fund. In California, 10% of the legislature identifies as LGBTQ.

“My hope is that by being present there ... that people will begin to understand what it means to be trans, what it means to be a trans adult and what it is we hope for for trans children," Zephyr said. "That they get to live their life, that they don't have to hide the way I had to hide, the way other trans adults from past generations had to bury themselves."

Zephyr and Howell are both Democratic members of the House Judiciary Committee, which could eventually hear a bill by Sen.-elect John Fuller, in which he again seeks to ban health care providers from treating transgender minors with puberty blockers, hormones or gender-affirming surgery.

Fuller’s proposed bill for the session that starts Jan. 2 is still being drafted in an effort “to make it unassailable,” he said.

Fuller introduced two bills in 2021 seeking to block medical providers from offering gender-affirming care to minors, but both failed.

He also sponsored a bill to prevent transgender women from competing on female sports teams. That measure was signed by Republican Gov. Greg Gianforte, but a judge overturned the law as it applied to college students and it's not believed to have affected any high school students, said Brian Michelotti, the executive director of the Montana High School Association.

Fuller said he’s bringing forward the medical care legislation again because “we know a lot more about the consequences of those things and we have a lot more information than we had two years ago." Lawmakers, he said, want to protect children from the debilitating effects of “a lifetime medical dependency.”

He declined to cite any studies, but said he had a pile of them on his desk.

It's not clear how the legislation might fare. While Republicans gained four seats in the Legislature and have a supermajority, not all Republicans supported the bills during the 2021 session. Fuller's first effort failed narrowly in the House and his second bill passed the House before being killed in the Senate.

Opponents of the proposal also have more research backing their arguments that gender-affirming medical care saves the lives of children suffering from gender dysphoria — the sense of unease that a person might have because their biological sex does not match their gender identity.

The World Professional Association for Transgender Health said this year that it believed treatment could begin earlier than previously recommended, with some patients beginning hormone therapy as young as age 14 and some surgical procedures starting as young as 15 and 17.

Transgender rights and medical treatment for transgender minors are highly charged issues around the country, leading to threats and violence.

The Montana bill comes as Arkansas, Alabama and Arizona have all passed legislation to ban gender-affirming medical care for minors. The Arkansas and Alabama laws have been subject to legal challenges.

A Texas judge has temporarily blocked a law that would have allowed the state to investigate parents for child abuse if their minor children received transgender medical care.

Fuller rejects the idea that his legislation means he hates the LGBTQ community. Instead, in a letter to the editor of the Daily Inter Lake, he said his proposal is meant “to protect children from being spayed, neutered and mutilated.”

Zephyr said legislation like Fuller’s, whether intended or not, “legitimizes" attacks against trans people.

“The far-right influencers who do want to paint LGBTQ people as pedophiles and groomers, they use this legislation as a way to amplify that violent rhetoric, which is exactly what drives the violence we’ve seen rising across the country, and events like Club Q,” Zephyr said.

Zephyr was referencing a recent shooting at a gay nightclub in Colorado Springs, Colorado, in which five people were killed. The suspect has been charged with murder and hate crimes.

Montana lawmakers may also consider other bills that affect transgender residents.

Republican Rep. Braxton Mitchell has proposed a bill to forbid minors from attending drag shows and ban drag story hours in libraries, daycare facilities, pre-K or after-school programs, according to emails Mitchell sent to legislative staff.

For her part, Zephyr plans to introduce two bills to protect the LGBTQ community — one would ban the “gay/trans panic” defense as a legal defense in Montana and another would protect the right of transgender people to adopt children.

The gay/trans panic defense asks jurors to find that a victim’s sexual orientation or gender identity is to blame for the defendant’s violent reaction that led to the criminal charges, according to the American Bar Association. Fifteen states and the District of Columbia ban the use of such a defense, according to the Movement Advancement Project, a Colorado-based think tank.

Montana has protections allowing gays and lesbians to adopt children, but does not have specific protections for trans folks, Zephyr said.

Jason Pierceson, a professor at the University of Illinois-Springfield, whose expertise includes gender and politics, said legislation attacking the LGBTQ community is “really an attempt by the religious right and tied to the Republican Party to erase trans people from public life, to enact policies erasing all kinds of legal protections and in some ways trying to erase them more fundamentally from society.”

Zephyr and Howell's presence in the Montana Legislature could help make a difference, he said.

“We know that representation like this matters in state legislatures,” Pierceson said, “particularly for expanding lesbian and gay rights.

Zephyr said she hopes to work with moderate Republicans “to help push back against what are extreme and dangerous attacks — attacks that deny trans people lifesaving medication.”
ETHIOPIAN WAR OF AGGRESSION
As Tigray calms, Ethiopia sees growing conflict in Oromia



 Ethiopia's Prime Minister Abiy Ahmed addresses lawmakers at the parliament in Addis Ababa, Ethiopia Thursday, July 7, 2022.

 Even as Ethiopian Prime Minister Abiy Ahmed attends the U.S.-Africa summit this week to promote last month's peace agreement between his government and authorities from the country's Tigray region, the larger region of Oromia appears increasingly unstable 
(AP Photo, file)

CARA ANNA
Wed, December 14, 2022 at 1:20 AM MST·5 min read

NAIROBI, Kenya (AP) — As one deadly conflict in Ethiopia begins to calm, another is growing, challenging a government that’s eager to persuade the international community to lift sanctions and revive what was once one of Africa’s fastest-growing economies.

Even as Ethiopian Prime Minister Abiy Ahmed attends the U.S.-Africa summit this week to promote last month’s peace agreement between his government and authorities from the country’s Tigray region, the larger region of Oromia appears increasingly unstable.

Africa’s second most populous country, with 120 million people, is again wrestling with deadly tensions between ethnic groups and their armed allies. Both the Oromo and Amhara ethnic groups, the country’s largest, allege killings and blame the other. With telecommunications often cut and residents often fearing retaliation if they speak out, the death toll in the violence in Oromia is unknown.

Speaking to The Associated Press on condition of anonymity out of fears for their safety, several residents of Oromia described deadly attacks in recent weeks.

One witness in the region’s Kiramu district said his father and cousin were among at least 34 people killed since Nov. 24. He blamed soldiers under the control of the Oromia regional government, saying he saw their uniforms.

“It all started with a confrontation between a single local militia and members of the Oromia special forces,” he said. “The special forces killed the militia who was a member of the Amhara community, and then a week-long killing followed." He estimated that hundreds of people have since fled the area.

An ethnic Oromo resident of Kiramu, however, accused an Amhara armed group known as the Fano of attacking and killing civilians and said he had seen more than a dozen bodies and buried four of them on Nov. 29.

“This militia group is killing our people, burning villages and looting everything we own,” Dhugassa Feyissa told the AP. “They shoot at anyone they find … be it public servants, police officers or teachers.”

The Oromo and Amara have lived together for years, he said, but they had never seen fighting like this before.

The deputy administrator of the Gidda Ayanna district, which also has seen some of Oromia’s worst violence in recent weeks, also blamed the Amhara Fano fighters.

“Civilians in our area are being killed, displaced and looted. This group is heavily armed, so it is no match for farmers who are defenseless,” Getahun Tolera said, noting that his district now hosts some 31,000 people who fled nearby districts. “We are still going house-to-house and discovering bodies.”

Ethiopian federal government officials declined to comment on the killings in Oromia and have not yet openly spoken about them. The prime minister last week said only that some “enemies with extreme views” were trying to destabilize the country, without giving details.

Ethiopian security forces, Oromo insurgents and Amhara militia are all battling each other in Oromia, Ethiopia’s largest region, said William Davison, an analyst with the International Crisis Group.

“Amid an intensifying government struggle against the rebels, all three have targeted civilians, particularly ethnic Amhara, which has led to an increase in violence by Amhara militia claiming to be defending their communities,” he said.

As Ethiopian federal security forces battle the Oromo Liberation Army, which the government has called a terrorist group, Oromo and Amhara residents and their armed allies also fight each other over grievances old and new.

Amhara settlers first moved en masse to Oromia in the 1980s during a famine in northern Ethiopia. They lived peacefully there until the past three years. The OLA split from an Oromo political organization and reportedly began targeting Amhara, at times as revenge for its losses to government forces. Amhara militia reportedly began targeting Oromos, and regional security forces became involved.

Oromos are Ethiopia’s largest ethnic group, followed by the Amhara, who have dominated the country’s politics for generations. Many Oromos were jubilant when Abiy, who identifies as Oromo, became prime minister in 2018. But that excitement has changed to frustration with the growing violence.

Rallies protesting the killings have been held in some communities in recent days. Last week, the government-appointed Ethiopian Human Rights Commission said “hundreds” of people had been killed in a “gruesome manner” in the past four months across 10 zones in the Oromia region, and it confirmed the presence of government forces, Amhara militia and the OLA in areas where repeated killings occur.

“The deliberate attacks against civilians in these areas are made based on ethnicity and political views … with the assertion that one supports one group over the other,” the commission said, urging the federal government to take urgent action.

Opposition parties also are speaking up. The Ethiopian Peoples’ Revolutionary Party, All Ethiopia Unity Party and Enat Party called for more security for the affected communities, and a senior Ethiopian official from the opposition National Movement of Amhara asked the federal government to intervene.

“The totality of us have become a country that shows no strong aversion to a continued bloodshed of innocents, wherever it may happen,” Belete Molla said in a Facebook post earlier this month.

Another prominent political figure, Oromo opposition politician Jawar Mohammed, earlier this month asserted that at least 350 people had been killed and over 400,000 displaced “just in the last 48 hours” in the Kiramu, Horo Guduru, Kuyu and Wara Jarso areas of Oromia.

“The government needs to quit pretending as if nothing is happening,” Jawar said in a Facebook post. “The conflict is fast becoming a communal war involving civilians. If not contained soon, it will likely spread to other parts of the two regional states and beyond.”
Eritrean troops murdered my uncle - WHO head Tedros


Wed, December 14, 2022 

Dr Tedros still looked visibly shaken at Wednesday's briefing in the Swiss city of Geneva

The head of the UN's public health body has accused Eritrean troops of killing his uncle in Ethiopia's war-torn Tigray region.

Dr Tedros Adhanom Ghebreyesus, of the World Health Organization, said he was told more than 50 other people were arbitrarily killed in the same village.

"I was not in good shape," admitted the still visibly shaken Ethiopian, whose family hails from Tigray.

Eritrea has so far made no public comments on the accusation.

Speaking at Wednesday's WHO briefing in Geneva on the latest Covid-19 issues, Dr Tedros said: "On Saturday, I was informed that my uncle was murdered by the Eritrean army.

"I spoke to my mother, and she was really devastated because he was the youngest from their family. And he was almost the same age [as me]," said the 57-year-old WHO director general. He provided no details about the timing of the alleged attack or the location of the village.

Dr Tedros also expressed hopes that a ceasefire agreement signed in November between the Ethiopian government and the Tigray People's Liberation Front (TPLF) "will hold and this madness will stop".

But Eritrean troops and forces from Ethiopia's neighbouring Amhara region were not party to the deal.

The conflict in Tigray erupted in late 2020 when Ethiopian Prime Minister Abiy Ahmed ordered a military offensive against local forces in the country's northern region.

He said he did so in response to an attack on a military base housing government troops.

The escalation came after months of feuding between Mr Abiy's government and leaders of Tigray's dominant political party.

The fighting devastated the populous country in the Horn of Africa, leaving thousands of people dead with 350,000 others living in famine conditions.


Map
CRIMINAL CRYPTO CAPITALI$M TOO
Binance Founder ‘CZ’ Insists We Can Trust His Crypto Exchange – but Can We?



Sam Kessler
Wed, December 14, 2022 

Monday’s arrest of Sam Bankman-Fried (“SBF”) capped off a historic period in the world of memes, money and mayhem that is the cryptocurrency industry. The arrest of the FTX exchange founder drew mainstream headlines that greatly overshadowed the other big crypto story of the day: questions around the solvency of Binance, the largest cryptocurrency exchange by trading volume.

If the collapse of FTX was catastrophic for the burgeoning crypto industry, a collapse of Binance would be apocalyptic.

This article originally appeared in Valid Points, CoinDesk’s weekly newsletter breaking down Ethereum’s evolution and its impact on crypto markets. Subscribe to get it in your inbox every Wednesday.

FTX – at one point the third-largest crypto exchange by spot volume – processed around $37 billion in spot trades in October, the month before it collapsed, according to CryptoCompare. The second-largest exchange, Coinbase, processed $47 billion that month. Meanwhile, Binance’s spot trading volume in October totaled a whopping $390 billion.

For over a month, Binance CEO Chanpeng Zhao (“CZ”), like other exchange leaders, has been on a quest to convince users that his product is wholly different from FTX – the SBF-led exchange that became insolvent after misusing user funds.

Like FTX, though, Binance is largely unregulated, and not everyone is buying CZ’s repeated assurances of propriety. Over the past week, a shoddy audit of the exchange’s reserves – followed by news of criminal investigations into Binance executives – alarmed users enough to catalyze record withdrawals from the platform.

While Binance appears to be weathering the storm so far (there are no glaring signs that the exchange has misappropriated user funds FTX-style), recent events have drawn attention to the fact that Binance, which exists beyond the scope of regulators and tracks customer holdings on its own servers rather than on public blockchains, asks for a tremendous amount of trust from its users in order to operate. In the “trustless” world of cryptocurrency, this is a bit hard to square.
Trusting Binance

The biggest players in crypto are centralized exchanges – platforms like FTX, Coinbase, Kraken and Binance – that take direct custody of user cryptocurrency (rather than leave tokens in a user’s own blockchain wallet) in order to facilitate trades.

After investors were burned by FTX – the largest crypto exchange to collapse after abusing the trust of its depositors – people have grown wary of trusting other, similarly centralized platforms. But not all cryptocurrency exchanges that custody user funds have earned the same degree of skepticism.

Unlike U.S.-regulated exchanges like Coinbase and Kraken, Binance (like FTX) operates in a sort of regulatory gray area. The firm was originally founded in China but left the country in 2017 just before its government banned cryptocurrency trading. Today, Binance deliberately obfuscates where it is headquartered.

While there are jurisdiction-specific versions of Binance, like Binance.US, which operate independently from the main Binance platform, the main, largely unregulated version of Binance is the biggest by far. (Binance.US doesn’t even rank among the top 10 crypto exchanges by spot trading volume.)

Coinbase, Kraken, Binance.US and other jurisdiction-specific Binance platforms make routine accounting disclosures and face strict oversight from regulators. The main Binance platform, however, isn’t subject to the same regulatory scrutiny as its peers. As such, it can offer relatively low fees along with products that it would be unable to run in the U.S. and many other countries – like sophisticated derivative contracts and margin trading facilities that allow users to borrow money in order to make bigger, riskier bets.

As a consequence of Binance’s regulation dodging, though, the platform’s users need to trust Binance’s word on whether their money is where it purports to be.
Record withdrawals

Fears of a Binance insolvency reached a fever pitch over the weekend after a much-derided “proof-of-reserves” report from the exchange failed to convince onlookers that it was fully collateralizing assets behind the scenes.

Widespread skepticism towards the report – which users criticized for its lack of thoroughness and selective disclosures – sparked record outflows from Binance, with investors pulling nearly a billion dollars from the exchange in a period of just 24 hours over the weekend.

Money continued to pour out of the exchange on Monday after a report from Reuters detailed a U.S. Department of Justice investigation into Binance – one of several ongoing probes into the firm from global law enforcement agencies. According to Reuters, federal prosecutors are weighing whether to charge Binance executives, including CZ, with money-laundering violations.

News of Binance’s legal troubles opened the floodgates even wider; users were soon criticizing Binance for everything from its ability to change the ledger of its “decentralized” BNB blockchain, to the solvency of “bridged” versions of BUSD, Binance’s stablecoin.

“Binance FUD” (meaning fear, uncertainty and doubt) briefly trended on Twitter.

The USDC pause


On Monday, Binance saw another $2 billion in net withdrawals from its platform – the largest withdrawal event for the exchange since this past June, according to crypto analytics firm Nansen.

The outflows were large enough to force Binance to temporarily pause withdrawals of USDC, the second-largest stablecoin – a vital instrument in crypto financial markets that stays “pegged” to the price of one dollar.

Binance said it needed to pause USDC withdrawals in order to facilitate a “token swap” of USDC stablecoins for its own BUSD stablecoins – a sort of practical measure necessary to loosen up liquidity for further withdrawals.

However, the move sparked worrying headlines, including one from CNBC, reflecting that some users saw the pause as yet another signal that Binance might not be fully collateralizing user assets behind the scenes. (Notably, pausing stablecoin withdrawals was one of the last actions FTX took before filing for bankruptcy.)

Despite the uproar, Binance’s explanation for why it paused USDC withdrawals is plausible on its face. Moreover, Nansen’s accounting of Binance-linked blockchain wallets shows that the exchange has at least $60 billion in on-chain reserves – more than enough liquidity to handle customer withdrawal demands and vastly more than FTX had (as a percentage of overall user assets) when it collapsed.

But without a full accounting of Binance’s assets and liabilities, the exchange’s health is impossible to judge definitively.

Why should Binance be trusted?

Despite Binance’s opaqueness, users continue to rely on the platform.

The largest crypto exchange offers users the ability to trade more kinds of tokens, with higher liquidity and lower fees, than virtually any other platform – centralized or decentralized. It also offers strategies that are inaccessible, in many jurisdictions, to anyone other than licensed investors.

But the fact that Binance is the only shop in town for certain trading activities isn’t the only reason why some investors continue to trust CZ with their money.

Wave Financial CEO David Siemer told CoinDesk that while he is wary of all centralized exchange platforms, he is relatively unconcerned that Binance will face FTX-type insolvency.

For one thing, says Siemer, Binance was founded in 2017 and simply has a longer track record than FTX, which was founded in 2019.

Siemer also noted that Binance has been relatively conservative in terms of the features it offers users – at least compared to FTX. “From a functionality standpoint,” said Siemer, “Binance rolls things out that are pretty tried and true.”

FTX, says Siemer, partially failed because it advertised a high-tech – but error-prone – cross-margining system. In essence, the system was supposed to allow a user to take multiple separate positions against a single pool of collateral; if one of a user’s bets went bust, the whole pool was subject to liquidation (meaning the FTX exchange would have automatically claimed the user’s collateral).

In Siemer’s experience, this system didn’t always work as advertised; users were sometimes able to make big bets that weren’t auto-liquidated when they should’ve been – meaning investors might have lost the exchange’s (and, it seems, other users’) money on bets that they should’ve lost.

Unlike FTX, Binance “[doesn’t] allow a lot of crazy, weird margining” features like cross-margining, said Siemer.

And then, says Siemer, there’s the fact that Binance “doesn't have an Alameda.” Alameda Research was the SBF-linked trading firm that collapsed after it apparently invested (and lost) funds belonging to FTX users.

“Because [FTX] had Alameda,” said Siemer, “both sides were able to just kind of prop each other up for a long, long time.”

While it’s technically possible that Binance is using or loaning out user funds behind the scenes (the firm is apparently under investigation for money laundering), there’s no sister firm like Alameda to which Binance would have obviously funneled money.
The importance of PR

While one can find some differences between Binance and FTX, it’s impossible to know what’s really going on at Binance behind the scenes. CZ, for his part, seems acutely aware of the fact that his exchange will live or die based on the trust of its users.

Amid all the “FUD,” the Binance founder – at one point more of a behind-the-scenes operator – has become uncharacteristically active on social media in recent months as the market has soured and the FTX debacle has continued to unfold.

In between tweets defending Binance, CZ has also found time to joke around with his followers, and he recently retweeted a tweet from 2019 in which he explained that he was “a normal guy, nothing fancy” and aimed to “seek and provide positive energy.”

In this way, one finds a striking similarity between CZ and SBF, his one-time nemesis. Both founders realize that in a world of centralization and lax regulations – perception is everything.

Binance sees $3.6 billion in outflows in a week as customers pull funds from the exchange - but CEO Changpeng Zhao says its 'business as usual'

Phil Rosen
Wed, December 14, 2022 

Changpeng Zhao
Chinese-Canadian businessman


Binance Co-Founder and CEO Changpeng Zhao delivers a speech at the opening event of Europe's largest tech conference, the Web Summit, in Lisbon on November 1, 2022.
Patricia De Melo Moreira/AFP/Getty Images

Binance has seen heavy withdrawals as the FTX implosion continues to shake confidence in the sector.

The exchange saw roughly $3.66 billion in net outflows over the last week, per Nansen data.

Binance CEO Changpeng "CZ" Zhao tweeted that the flows were "busines as usual."


Binance, the world's largest cryptocurrency exchange, has seen $3.66 billion in net outflows over the last week, according to data compiled by Nansen.

Customers have pulled a total of $8.78 billion out of the crypto exchange, while $5.12 billion have flowed into company, per Nansen's exchange flows dashboard.

Despite the sizable withdrawals, Binance still holds about $58.9 billion in assets, according to Nansen data cited by Decrypt.

Amid the outflows from the exchange, Binance CEO Changpeng "CZ" Zhao, shrugged off any concerns about customers withdrawing funds.

"We saw some withdrawals today," CZ tweeted Tuesday. "We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us."



His comments come shortly after the exchange temporarily froze customer withdrawals of the USDC stablecoin. The company announced withdrawals had resumed Wednesday.

Separately, the exec warned employees in an internal memo that he expects the "next several months to be bumpy," Bloomberg reported Wednesday.

A "historic moment" is beginning, he said, as repercussions from FTX's collapse continue to rattle the industry, but Binance is financially secure enough to survive a downturn.

Meanwhile, on Monday, Reuters said that the US Department of Justice has been investigating Binance over money laundering violations, reporting that the exchange had processed over $10 billion worth of illegal payments in 2022.


Binance resumes USDC withdrawals 

after temporary halt as FTX fallout 

ripples through crypto industry

Binance, the largest crypto exchange by trading volume, resumed customer withdrawals for the stablecoin USDC Tuesday after announcing a brief halt earlier in the day.

That halt came as Binance saw a massive wave of withdrawals as crypto markets continued to be unsteady in the wake of FTX's collapse last month.

According to blockchain data platform Nansen, over the 24 hour period ending at 1 a.m. on Wednesday, Binance saw about $3 billion in total outflows, its largest customer withdrawal event since June.

Assets tracked in known Binance controlled wallets by Nansen amount to $59 billion in assets, $36 billion of which is held in the BNB and BUSD tokens Binance has created.

"I wouldn't be surprised if they are intentionally making it harder for USDC users to withdraw, while other stables and tokens are being withdrawn at ease," Conor Ryder, a researcher with Kaiko told Yahoo Finance.

As Ryder noted, in recent months Binance has worked to phase out the use of USDC on its platform in exchange for its own stablecoin, BUSD. That means it converts USDC deposits on its platform to BUSD, and must convert them back to meet withdrawal requests. The exchange's BNB token, which carries use as a native token for its own blockchain, is used on the platform for fee discounts like to FTX's failed FTT token.

“If there’s any risk that we fail, it all depends on how we fail,” Binance’s founder and CEO Changpeng Zhao said during an Ask Me Anything over Twitter.

“As long as we fail honorably and credibly, we let people withdraw their funds because the company ran out of money, that’s okay,” Zhao added.

As Zhao pointed out, crypto exchanges aren’t banks. That means when faced with a run of heavy customer withdrawals, crypto exchanges should still be able to give customers all their money back, even if the process puts them out of business.

A logo of Binance is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier

As Reuters reported earlier this week, the Justice Department is now weighing whether to press charges against Binance for violating sanctions and money laundering laws after a multi-year investigation.

Along with other exchanges such as Houbi, Bitmex, and Bybit, Binance has gone to great lengths to publish a proof of reserves report, in addition to a report from auditing firm Mazars a week ago.

The Mazars report was an Agreed Upon Procedure (AUP), not an audit, and showed 97% of Binance's bitcoin holdings ($9 billion) were collateralized, meaning it hadn’t achieved a 1:1 backing of bitcoin deposits to liabilities.

However, the report noted it did not include "out-of-scope assets," meaning margin and loans taken out for BTC in other tokens. With those other tokens, Binance's bitcoin deposits would be “101% collateralized” according to Mazars' findings.

When asked why Binance doesn’t show more transparency surrounding what Mazars called "out-of-scope assets," Zhao said proving asset reserves "is not as simple of an exercise as people think" and that the company will roll out more information “in the next couple of weeks.”

“I don’t know exactly," Zhao said in reference to the timing on additional reserves data. "In Binance, internally, we don’t use a lot of deadlines. People work pretty fast already. We try not to push."

FTX fallout

On Monday night, FTX’s founder and former CEO Sam Bankman-Fried was arrested in The Bahamas. On Tuesday, the U.S. Justice Department, Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC) filed charges against the 30-year old, alleging he and his company committed fraud by spending FTX customer deposits.

The shocking collapse has put the money of more than a million customers into the hands of Chapter 11 bankruptcy, and caused major investors from Sequoia, to BlackRock, to Temasek, and the Ontario Teacher’s Pension Plan to write off their equity investments in the exchange to zero.

According to data tracked by blockchain forensics company, Chainalysis, the impact of the FTX collapse has proven to be the third largest sell off in digital coins this year.

In May, the collapse of algorithmic stablecoin Terra (UST) cost crypto holders an estimated realized loss $20.5 billion, while the bankruptcies of Three Arrows Capital, Voyager Digital, and Celsius Network a month later accounted for as much as $33 billion in weekly realized losses.

FTX’s demise has left investors with a largest weekly realized loss of $9 billion. Over the course of this year, the overall value of crypto assets has dropped by about two-thirds.

Credit: Chainalysis
Chainalysis

Recent revelations regarding how FTX handled customer funds has also forced many crypto investors to reassess the viability of the emerging asset class, with hearings on Capitol Hill this week seeing the industry again under pressure amid an onslaught of criticism from lawmakers.

"FTX is just the latest in the series of major crypto industry failures, failures of centralized crypto intermediaries like Celsius, and failures of DeFi offerings like Terra Luna," Hilary Allen, a professor at American University Washington College of Law said during a Wednesday Senate Banking, Housing and Urban Affairs Committee hearing on FTX.

"These failures arose in large part because of a feature that is unique to the crypto industry, crypto assets can be made up out of thin air."

David Hollerith is a senior reporter at Yahoo Finance covering the cryptocurrency and stock markets. Follow him on Twitter at @DsHollers


Read the full memo the CEO of Binance sent to staffers after the exchange was hit by more than $1 billion of withdrawals in a day amid the FTX fiasco


Nidhi Pandurangi
Wed, December 14, 2022 

Binance CEO, Changpeng Zhao.
REUTERS/Darrin Zammit Lupi

Shortly after jittery investors withdrew over $1 billion from Binance on Tuesday, its CEO sent a memo to staffers.


Changpeng "CZ" Zhao seemed to try to assuage market fears amid the implosion of crypto peer FTX.


In the memo, CZ wrote Binance expects "the next several months to be bumpy."


On Tuesday, jittery investors withdrew more than $1 billion from Binance, the world's largest crypto exchange. Hours later, the company's CEO, Changpeng "CZ" Zhao, sent a memo to staffers where he seemed to try to assuage market fears in the aftermath of the implosion of crypto peer FTX.

"Binance will survive any crypto winter," CZ wrote in the memo.

Tuesday's withdrawals marked the biggest single-day withdrawal the exchange had seen since June, per blockchain research group Nansen.

Insider's Phil Rosen reported on Wednesday that Binance has seen about $3.66 billion in net outflows in the seven days preceding December 13, also citing data compiled by Nansen.

Publicly, CZ appeared to shrug off concerns about customers withdrawing funds, tweeting on Tuesday: "We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us."

But in the memo to staff, CZ wrote that Binance expects "the next several months to be bumpy." He added that the company will "get past this challenging period."


In the memo, CZ also seemingly referred to the troubles plaguing crypto peer FTX and its founder and ex-CEO Sam Bankman-Fried — who was arrested in the Bahamas Monday — writing: "With all that is going on, we know that we are at a historic moment in crypto. Rest assured, this organization was built to last."

Binance declined Insider's request for comment for this story.

Read the full memo Changpeng "CZ" Zhao sent to staff on Tuesday.

"Team:

You may have seen some of the latest news regarding Binance. The fallout from the FTX implosion has brought with it a lot of extra scrutiny and tough questions. The good news is that, even though the news stories don't always reflect it, we can answer the tough questions thrown at our business.

For example, despite today's news regarding withdrawals, we are in a strong financial position. We often process more than $1b in deposits or withdrawals on a daily basis. So, it's nothing unusual today. User assets at Binance are all backed 1:1 and Binance's capital structure is debt free. We maintain hot wallet balances to ensure that we always have more than enough funds to fulfill withdrawal requests and we top up hot wallet balances accordingly.

With regard to questions on the temporary halt of withdrawals of USDC, because we auto convert USDC to BUSD in order to retain large liquidity pools, we generally retain USDC deposits for future withdrawals. In today's case, many people deposited BUSD or USDT to withdraw USDC. When this happens, we need to convert. Our current conversion channels are clunky. We have to go through a bank in NY in USD, which is slow. We will improve this going forward.

With all that is going on, we know that we are at a historic moment in crypto. Rest assured, this organization was built to last. As long as we continue to offer users the best product, user experience, and frictionless trading environment – Binance will survive any crypto winter.

While we expect the next several months to be bumpy, we will get past this challenging period – and we'll be stronger for having been through it. As always, I'm grateful to each of you for your incredible dedication and hard work and I'm proud of the incredible business we've built together.

CZ"





STARVING 
Exam finds famed LA mountain lion may have been hit by car



This Nov. 2014, file photo provided by the U.S. National Park Service shows a mountain lion known as P-22, photographed in the Griffith Park area near downtown Los Angeles. The famous Hollywood-roaming mountain lion known as P-22 is drastically underweight and probably was struck and injured by a car, according to wildlife experts Tuesday, Dec. 13, 2022, who are giving him a health exam amid concerns about his behavior, including killing a leashed dog. 
(U.S. National Park Service, via AP, File)More


Tue, December 13, 2022

LOS ANGELES (AP) — The famous Hollywood-roaming mountain lion known as P-22 is drastically underweight and was probably struck and injured by a car, wildlife experts who conducted a health examination on the big cat said Tuesday.

The male cougar, whose killing of a leashed dog has raised concerns about its behavior, probably won't be released back into the wild and could be sent to an animal sanctuary or euthanized, depending on its health, the California Department of Fish and Wildlife said.

“Nobody is taking that kind of decision lightly,” spokesperson Jordan Traverso said during a videoconference. He added the agency understands “the importance of this animal to the community and to California," and “we recognize the sadness of it."

P-22 was captured and tranquilized on Monday in the trendy Los Feliz neighborhood near his usual haunt of Griffith Park, an island of wilderness and picnic areas in the midst of the Los Angeles urban sprawl.

State and federal wildlife officials announced last week that they were concerned the aging cat “may be exhibiting signs of distress” due in part to aging, noting the animal needed to be studied to determine what steps to take.

Tuesday's examination found the cat had an eye injury, probably received from being hit by a car and more tests would be conducted to determine if the animal suffered additional head trauma, said Deana Clifford, the senior wildlife veterinarian with the department.

A computerized tomography scan is scheduled for later this week to look into other possible chronic health issues that may have caused his decline, Clifford said.

P-22 was first captured in 2012 and fitted with a GPS tracking collar as part of a National Park Service study. The cougar is regularly recorded on security cameras strolling through residential areas near Griffith Park.

P-22 is believed to be about 12 years old, making him the oldest Southern California cougar currently being studied. Most mountain lions live about a decade.

“This is an old cat, and old cats get old-cat diseases,” Clifford said. “Any of us who had cats at home have seen this."

“We’re working through all of those issues and we’ll take a totality of the findings into account to try to make the best decision we can for the cat,” she said.

P-22 usually hunts deer and coyotes, but in November the National Park Service confirmed that the cougar had attacked and killed a Chihuahua mix that was being walked in the narrow streets of the Hollywood Hills.

The cougar also is suspected of attacking another Chihuahua in the Silver Lake neighborhood this month.

P-22 has lived much of his life in Griffith Park, crossing two major freeways to get there. He was the face of the campaign to build a wildlife crossing over a Los Angeles-area freeway to give big cats, coyotes, deer and other wildlife a safe path to the nearby Santa Monica Mountains, where they have room to roam.

Ground was broken this year on the bridge, which will stretch 200 feet (some 60 meters) over U.S. 101. Construction is expected to be completed by early 2025.
ZIONIST FASCISM
Israeli jurists warn against Ben-Gvir's bid for more powers over police



: Israeli far-right lawmaker Itamar Ben-Gvir holds a news conference ahead of Israel's election, in Jerusalem

Wed, December 14, 2022
By Dan Williams

JERUSALEM (Reuters) - Legal advisers to Israel's parliament and outgoing government on Wednesday criticised a bid by a far-right politician to give himself expanded powers as next police minister, warning that his proposed changes clashed with democratic principles.

Itamar Ben-Gvir of the Jewish Power party was promised the National Security Ministry, with authority over police, under a coalition deal with Prime Minister-designate Benjamin Netanyahu.

Though Netanyahu's hard-right new government has yet to be finalised, Ben-Gvir has already submitted a bill that would amend police regulations. It would give him, as minister, greater control over the police chief and police investigations.


Ben-Gvir, who placed third in a Nov 1 election thanks in part to his law-and-order platform, has defended the bill as consolidating a chain of command between government and police.

But centre-left lawmakers have warned that the amendments could politicise criminal probes and prosecutions - and noted Ben-Gvir's record that includes 2007 convictions for incitement against Arabs and support for an outlawed Jewish militant group.

"The draft does not strike an appropriate balance ... between the powers of the minister and the professional independence of law enforcement bodies," Amit Merari, deputy attorney-general, told a parliamentary panel convened to discuss the bill after it passed its first reading on Tuesday.

"Taken together, the proposed directives have the potential to deal real and grave damage to the core principles of democratic rule in the State of Israel," she said, adding that any amendment should be sought after the government is sworn in.

A parliamentary legal adviser, Miri Frenkel-Shor, said the draft was inconsistent with principles set out by a state commission of inquiry that "police must be totally free in its investigations, with only the authority of the law above it".

Ben-Gvir has disavowed some of his past conduct. He says that, in cabinet, he will serve all of society. But he has also played down violence by Jewish settlers against Palestinians in the occupied West Bank, and wants Israeli security forces to be freer to open fire when faced with Arab unrest.

Seeking to allay domestic and foreign concern at the far-right rise, Netanyahu - who has already served a record 15 years in top office - says he will ultimately set Israeli policy.

Yet the issue of police independence has also touched a nerve among Netanyahu's critics given his ongoing corruption trial, in which he denies all wrongdoing and accuses law-enforcement authorities of a politicised witch-hunt against him.

Addressing the parliamentary panel, Ben-Gvir called his bill "an historical correction that would be requisite for any democratic country". Sitting beside him, the Israeli police chief, Inspector-General Yaacov Shabtai, was more circumspect.

"We are not opposed to changes, but it is important that such dramatic changes be implemented through deep discussion," Shabtai said. "The police is not an army. The police interacts with civilians and not, like an army, with a designated enemy."

(Writing by Dan Williams, Editing by William Maclean)
Analysis-China's massive older chip tech build up raises U.S. concern


People visit a booth of Semiconductor Manufacturing International Corporation (SMIC), at China International Semiconductor Expo (IC China 2020) following the coronavirus disease (COVID-19) outbreak in Shanghai

Tue, December 13, 2022 
By Jane Lanhee Lee, Josh Horwitz and Alexandra Alper

OAKLAND, Calif./SHANGHAI/WASHINGTON (Reuters) - China’s largest chip maker SMIC is ramping up production of a decade-old chip technology, key to many industries' supply chains, setting off alarm bells in the United States and prompting some lawmakers to try to stop them.

The United States and allied nations could further step up restrictions if China announces a trillion yuan ($144 billion) support package for its chip industry, as Reuters exclusively reported on Tuesday, said TechInsights' chip economist Dan Hutcheson.

Starting with the Trump administration, the United States has been tightening the noose around China's high-tech ambitions. It cut off the world's largest telecommunications firm Huawei Technologies from the U.S. market and technologies, as well as cut off air supply to China's advanced chip making through a series of rules this year.

But why worry about older chip technology?


China, which in 2020 had 9% of the global chip market, has a track record of dominating key technologies by flooding the market with cheaper products and wiping out global competition, say China watchers.

They did it with solar panels and 5G telecom equipment, and could do it with older technology chips, said Matt Pottinger, former Deputy National Security Advisor of the United States during the Trump administration who has been studying chip policy at the Hoover Institution.

“It would give Beijing coercive leverage over every country and industry - military or civilian - that depend on 28 nanometer chips, and that's a big, big chunk of the chip universe," he said.

“28 nanometer” refers to a chip technology commercially used since 2011. It is still widely used in automotive, weapons and the explosive category of internet of things gadgets, said Hutcheson.

Hutcheson, who has been monitoring chip production capacity for four decades, said the concern is that Semiconductor Manufacturing International Corp and other chipmakers in China could use government subsidies to sell chips at a low price. And a possible new round of financial support from Beijing would increase chip production even further.

“The Chinese could just flood the market with these technologies,” he said. “Normal companies can't compete, because they can't make money at those levels.”

U.S. LAWMAKERS PUSHING AGAINST SMIC


Those concerns have pushed some lawmakers to use legislation for setting the defense budget hold back SMIC.

While the measure is weaker than what was initially proposed, this week U.S. Senators are expected to pass the annual National Defense Authorization Act 2023 that includes a section barring the U.S. government from using chips from SMIC and two other Chinese memory chip makers. It is not clear what impact the restriction, which kicks in five years after it becomes law, will have on SMIC.

Founded in 2000 with backing from Beijing, SMIC has long struggled to break into the ranks of the world’s leading chip manufacturers.

But it is a giant in older technology, including chips that regulate power flows in electronics. And its revenue was close to $2 billion in the third quarter this year, roughly double the same period last year on the back of the global chip shortage.

SMIC FILLING SUPPLY GAP


With U.S. export controls making it impossible to produce advanced chips, SMIC is doubling down on mature technology chips and has announced four new facilities, or fabs, since 2020. When those come online, it would more than triple the company’s output, estimates Samuel Wang, Gartner chip analyst. He said there is a huge ramp up in new chip fabs across China.

“All this will start to have an impact from early 2024 and will be full blown by 2027,” said Wang, adding the chip supply increase will put downward pressure on chip prices.

The importance of older chip technology hit the industry in the face in 2021 as a shortage of those chips prevented manufacturing of millions of cars and consumer electronics.

Mark Li, Bernstein Research’s chip analyst in Asia, said the company is becoming a formidable competitor to Taiwan's UMC Microelectronics Corp and U.S.-headquartered GlobalFoundries Inc.

“SMIC has been much more willing to add capacity than other fabs at the low-end, and especially in this shortage we’ve seen in the past two years,” he says. “It’s not an issue now...but who knows, maybe in a few years there will be another shortage and capacity will be a big problem.”

($1 = 6.9430 Chinese yuan renminbi)

(Reporting By Jane Lanhee Lee in Oakland, Calif and Josh Horwitz in Shanghai, and Alexandra Alper in Washington D.C.; Editing by Josie Kao)
WAIT, WHAT?
India's solar boom reverses gas momentum, cements coal use: Maguire



Men stand by a car near a coal-fired power plant in Shanghai

Tue, December 13, 2022 at 6:11 PM MST·3 min read
By Gavin Maguire

LITTLETON, Colo. (Reuters) -India's rapid advances in solar power production have been widely celebrated for showing how fast-developing economies can accelerate the decarbonisation of their energy systems without jeopardising economic growth.

But while the pace of India's solar rollout has been impressive, the advances have come mainly at the expense of natural gas - they have had little impact on the country's use of coal as the primary source of electricity.

Indeed, India increased the amount of electricity generated from coal in the opening 10 months of 2022 compared with the same period in 2021, and slashed gas-powered generation by nearly 40%, according to data from Ember.

This has resulted in a continuing climb in India's power sector emissions, even as solar's share of the country's electricity generation mix has more than doubled since 2019.

SOLAR SURGE

Between 2017 and 2021, India's solar power production capacity more than tripled, ranking third globally in terms of solar capacity additions during that window, according to the BP Statistical Review of World Energy.

And the country plans to more than double that solar capacity base again by 2025, leaving it highlighted by the International Energy Agency (IEA) as a key driver behind its recent dramatic upward revision to its global renewable energy supply outlook.

On paper, such rapid advances in green energy supplies should result in reduced pollution from the country's energy producers.

However, cumulative emissions from India's power sector have scaled new highs in the opening 10 months of 2022, topping 818 million tonnes of carbon dioxide and equivalent gases. That's up nearly 7% from the same period in 2021.

The main driver of the climb in power pollution has been a 7.7% climb in discharges from coal-fired generation, which accounted for 72% of the country's electricity and 97% of power sector emissions through October, Ember data shows.

GAS SQUEEZ
E

While coal's share of India's electricity mix has remained fairly flat at that elevated level, the share of gas-fired electricity has fallen sharply in 2022 to just 1.6%, the lowest since at least 2019.

Record high liquefied natural gas (LNG) prices were the main reason behind this downturn in gas use, as cost-conscious utilities balked at paying more than twice as much for spot LNG cargoes in 2022 as the 2021 average.

Reduced demand for LNG was also reflected in India's LNG import totals. These dropped by 16% through November from the same period in 2021, according to ship-tracking data by Kpler.

Those sharply lower LNG imports by India - the fourth largest importer in 2021 - freed up LNG cargoes for others in 2022, and helped alleviate the power crisis in Europe resulting from sharply lower Russian pipelined natural gas supplies amid the war in Ukraine.

However, for India's power producers, with limited options for generating baseload electricity, less gas simply meant they have had to burn more coal in 2022.

This is because while non-emitting solar power adds to overall electricity supplies during the day, India's overall grid requires a steady supply of baseload power at all times, and especially at night. This can be produced effectively by burning fossil fuels.

Natural gas had been expected to displace coal as that preferred baseload fuel over time in India, thanks to planned investments in gas import infrastructure and pipelines, as well as policy support to scale back use of high-polluting coal in power generation.

But the recent surge in gas prices is now threatening to not just stall, but reverse those trends, halting gas-related investments and supporting continuing reliance on coal.

Solar will remain the new fuel of choice for utilities developing additional power generation capacity in India, thanks to government subsidies and widespread support for green energy expansions.

But if global gas prices remain elevated throughout 2023, Indian electricity producers will continue to burn more coal than ever to generate baseload power, undermining the environmental benefits of record-setting renewable supply expansions.

(Reporting by Gavin Maguire; Editing by Kenneth Maxwell)
MONOPOLY CAPITALI$M
Microsoft offered to share Activision’s crown jewel to move forward the $68.7 billion takeover

Ananya Bhattacharya
Wed, December 14, 2022

Some kind of antitrust warfare.

Microsoft is struggling to curry favor for its Activision Blizzard merger, with an offer to share the video game developer’s popular title Call of Duty with other platforms getting the cold shoulder from regulators.

Microsoft’s $68.7 billion push to buy Activision Blizzard, the maker of Call of Duty, World of Warcraft, and mobile game Candy Crush, prompted concerns about competition and consumer choice related to titles becoming exclusive to Xbox and Game Pass, its subscription content and cloud-gaming business. In the US, the Federal Trade Commission (FTC) recently sued to block the deal. Competition watchdogs in the EU and in the UK have both launched probes of their own.

The acquisition would make the Redmond-based software company the third-largest video game maker in the world after Sony and Tencent. But Microsoft has repeatedly said it won’t take the titles off the market. To prove it, the firm even offered to sign a legally-binding consent decree with the FTC to provide Call of Duty games to rivals including Sony, for a decade, Microsoft president Brad Smith said at the annual shareholder meeting yesterday (Dec. 13). But the FTC apparently shot it down.

“I’m disappointed that the FTC didn’t give us the opportunity to even sit down with the staff to even talk about our proposal, to even see if there was a solution there,” Smith said. “…If there’s one thing we all know, whether you’re a government, or a business, or a parent talking to your children, you will never solve a problem if you don’t try.”
Microsoft’s Call of Duty is coming to Nintendo Switch, but Sony rejected the offer

Microsoft has forged a 10-year-deal with Nintendo to make Call of Duty available on the Kyoto-based company’s consoles, including Switch, and committed to make the first-person shooter video game franchise available to Valve Software’s online gaming platform Steam. However, these are not key players that derive much traffic from the title. The partner Microsoft needs to bag is Sony.

But Sony has rejected the idea more than once.

Back in September, PlayStation chief Jim Ryan criticized Microsoft’s offer to keep Call of Duty on PlayStation for three years after the current agreement between Activision and Sony ends, calling it “inadequate on many levels.”

The offer of an additional seven years to make the wildly popular game available on Sony’s console, as well as its Game Pass-style subscription service PlayStation Plus, didn’t moved the needle. Sony didn’t accept the proposal.

While Microsoft downplays Call of Duty’s ability to impact the gaming industry’s makeup, Sony argues otherwise. In an Oct. 28 comment to UK’s Competition and Markets Authority (CMA), Sony laid out various reasons why Call of Duty is different to the other games: It has the highest number of monthly active users among the top 10 gaming franchises in 2020 and 2021; it has a relentless release cycle; and it is unique among AAA games because of its popularity, loyalty, and the enormous resources Activision commits to developing the franchise.

“Call of Duty is not replicable. Call of Duty is too entrenched for any rival, no matter how well equipped, to catch up,” the Japanese company said.

Call of Duty, by the digits

425 million: Lifetime unit sales for the Call of Duty franchise.

$30 billion: Call of Duty series’ lifetime revenue.

125 million: Registered players for CoD: Warzone since its launch in March 2020.

650 million: Downloads Call of Duty: Mobile has generated since its launch in 2019.

3,000: People working on the Call of Duty franchise.

3-5 years: How long each release takes to develop

Over $300 million: Budget for each release
Microsoft’s take on the antitrust backlash, in the Microsoft president’s words

“The FTC’s case is really based on a market that they’ve identified that they say has two companies and two products, Sony PlayStation, and Microsoft Xbox. If you look at the global market, Sony has 70% of that market, and we have 30%. So the first thing a judge is going to have to decide is whether the FTC lawsuit is a case that will promote competition or is it really instead of a case that will protect the largest competitor from competition.” —Brad Smith during the Dec. 13 annual shareholder meeting
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Primatologist Jane Goodall Watched A Montage Of Trump And Her Analysis Was Something

Famed primatologist and environmental activist Jane Goodall hasn’t changed her opinion on former President Donald Trump.

In 2016, Goodall likened the then-presidential candidate’s behavior to the aggression displayed by a male chimpanzee.

Goodall echoed that view in a lengthy interview with MSNBC’s Ari Melber that aired on Tuesday’s broadcast of “The Beat.”

Melber played Goodall a montage of Trump stalking behind Democratic rival Hillary Clinton during one of their 2016 presidential debates, hugging and kissing the American flag, and calling himself a “perfect physical specimen.”

“What do you see there?” Melber asked Goodall.

Goodall chuckled, then replied: “I see the same sort of behavior as a male chimpanzee will show when he is competing for dominance with another.”

“They’re upright, they swagger, they project themselves as really more large and aggressive than they may actually be in order to intimidate their rivals,” Goodall continued.

Goodall later lamented how the divisiveness created in America ― by Trump and others ―“is a tragedy” that “can have a ripple effect around the world.”

Watch Goodall’s Trump analysis from the 29:30 mark here: