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Pardon Me, Again

The Hunter Biden pardon dominated a second news cycle, sucking up the vast majority of the oxygen. Here's a rundown of some of the more significant storylines:

And that's the rundown for today. We're in touch, so you'll be in touch. (Z)

Trump Gets an Early Christmas Grift

This story might be more significant than the Hunter Biden pardon. In fact, it may be WAY more significant. And yet, it's getting a tiny fraction of the attention. We will leave it to readers to decide for themselves why that might be (for our part, we can think of numerous possibilities).

This weekend, we had a question about whether or not Donald Trump would be able to skim a million dollars here, and a million dollars there, from the federal budget. Our answer was that it would be difficult and risky, and that there are better ways for him to enrich himself, using his outside businesses. It took a grand total of 48 hours before we got an object lesson in exactly how he might do that.

Recall that the Trump family recently got into the crypto game, with a project called World Liberty Financial (WLF). It is hard to call WLF a business, because the crypto it sells is currently not "currency." The only thing that you get if you buy it is the right to vote when decisions are made about WLF. And that is not likely to change anytime soon, or maybe ever, making WLF a rather poor "investment."

In view of this, WLF hasn't been doing too well, and looked like it might be headed for the same graveyard as Trump Vodka, Trump Steaks, Trump Airlines, etc. However, over the weekend, it got a huge "investment" from Justin Sun, who is a crypto entrepreneur (and a Chinese national, incidentally). Here is Sun announcing his new purchase:

We are thrilled to invest $30 million in World Liberty Financial @worldlibertyfi as its largest investor. The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump! TRON is committed to making America great again and leading innovation. Let's go!

Sun is generally trying to cultivate an image as a wild and crazy guy who might do something unpredictable at any time—sort of a Richard Branson on steroids. Readers may have seen the story about the "investor" who bought an artwork composed of a banana duct-taped to a wall for $6.2 million a little over a week ago? Well, the buyer was Sun, and he promptly ate the banana. This used to be called conspicuous consumption. It brings to mind the potlatches practiced by some Native American tribes in the Pacific Northwest and Canada. People would spend hundreds of hours making intricate blankets and other items and then they would ceremonially burn them (or give them away) as a statement of: "I am so rich I can afford to lose this valuable property."

Turning back to WLF, let us now point out how the venture is structured. Under the terms of incorporation, the first $30 million in income goes into the bank for operating costs. Thereafter, 75% of all income goes right to the Trumps. Prior to Sun's "investment," WLF's take was $22 million. Add in the Sun money, subtract the "into the bank" money, and calculate 75% of the residue, and the upshot is that Sun just gave the Trumps a $16.5 million holiday bonus. Or, if you prefer, a $16.5 million bribe.

Now, what might Sun be interested in here? Maybe he's a MAGA True Believer and just wants to support the movement. Or maybe this is part of his public branding as a wacky guy who does wacky things. Or possibly this is some lobbying on behalf of the Chinese government, so as to influence the President-elect's thinking about tariffs. Or maybe, just maybe, Sun is worried about the fact that he's been charged with securities fraud by the SEC, and he could sure use a friend who could help him out with that. Sun says he's not looking for anything in exchange for his "investment." If you believe that, then please do contact us, because we have a banana we'd like to sell you. At only $2 million, it's a bargain compared to what some other bananas are going for. You do have to provide your own duct tape and wall, however (although we do have a used roll of tape available for $2,500).

In any case, are we crazy in thinking that the incoming president taking what appears to be a $16.5 million bribe is a much bigger story than the outgoing president letting his kid off the hook? Heck, even the banana art story has gotten more coverage than the WLF "investment." (Z)

And Then There Was One

At the outset of last week, there were three House seats still up in the air. Now, the total is one, and even that one is probably just a day or two from being decided.

The first seat among the trio to be resolved was the one in CA-45. Democratic challenger Derek Tran is up by about 600 votes, and Rep. Michelle Steel (R) concluded that there was no circumstance under which that gap would be erased. The fact that all the major outlets had called the seat for Tran probably helped bring some clarity to her thinking. In any event, she has conceded.

Next up was the seat representing IA-01. Rep. Mariannette Miller-Meeks (R) was up by just 801 votes when the initial counting was concluded, so challenger Christina Bohannon asked for a recount. As we have noted many times, the votes that change during a recount are almost exclusively leaner non-votes that become votes and leaner votes that become non-votes. Barring some systematic problem with the ballot design, or the voting process, it's basically a series of coin flips. And one candidate is not going to win 800 more coin flips than the other. In fact, once all was said and done, Bohannon picked up... three votes. So, Miller-Meeks is now your official winner.

That means that the only seat that is still unresolved is CA-13, where Rep. John Duarte (R) is trailing Adam Gray by 143 votes out of a little over 310,000 cast. The good news for Duarte is that, over the weekend, he gained ground on Gray, picking up about 80 votes. The bad news is that time is running out. The only remaining ballots are ones that need to be "cured," and volunteers for both campaigns spent the Thanksgiving weekend knocking on doors trying to reach the casters of those ballots. After so much effort has already been expended, the Duarte camp is not likely to be able to find another 143 uncured voters, especially since the deadline for certifying the results is supposed to be today. So, this one is almost certainly going to go to the Democrat Gray.

Assuming Gray does hold on, then there will be 220 Republicans in the House and 215 Democrats. And even if Gray stumbles at the finish line, there will be 214 members of the blue team. Interestingly, and we have not seen anyone who has pointed this out, either way it means the Democrats will have more members in the 119th House than they had at any time during the meeting of the 118th House. In the 118th, the Democrats largely alternated between having 212 and 213 members, dropping to 211 on one occasion for about a month (from the death of Bill Pascrell on Aug. 21, 2024, until the seating of LaMonica McIver as the replacement for Donald Payne on Sept. 18, 2024).

Meanwhile, the Republican Conference in the 118th House started at 222 members, dropped as low as 217 members, and mostly hovered around 219-220 members. Assuming Gray wins, then the 119th House will have 220 Republican members. So, the cat herding will be just a bit harder this time than it was last time (because more Democrats, same number of Republicans). And, of course, the moment the 119th House convenes, 3 Republicans will vanish, as Matt Gaetz' resignation becomes official, and Elise Stefanik and Mike Waltz will depart for jobs in the Trump administration. So, Speaker Mike Johnson will start with a 217-215 "advantage." As we have pointed out, that will mean that every Republican member will have a veto for the next several months, as long as the Democrats stay united. Good luck with that, Mike (and keep reading). (Z)

Will Mike Johnson Be Able to Herd the House Cats?

As we note, the current score on the House is 214 D, 220 R, with CA-13 still hanging in the balance, but likely to go Democratic, for a final tally of 215 D, 220 R. Subtract the three exiting GOP members, and it's 215 D, 217 R. With a 1-vote margin of error, at least for the first 100 days or so, it means that Mike Johnson will get to deal with 217 Joe Manchins.

Most House Republicans will follow Johnson's orders, but most doesn't do the job. All does the job. There are at least five groups and things Johnson will have to worry about, and some of them will be issues even beyond the three special elections that will return his majority to 220-215. Here is a brief rundown of the lay of the land:

Rep. Nancy Pelosi (D-CA) was one of the greatest cat herders in the past century. We may soon find out if Johnson's skills can match hers. (V)

It's Beginning to Look a Lot Like Christmas, Day 2: Gifts for Kamala Harris

Oops, we accidentally did this out of order. It was supposed to be Kamala Harris first, then Donald Trump. Oh, well. Here, for your viewing pleasure, are half a dozen reader suggestions for what Santa should bring the VP this year:

Tomorrow, it is Joe Biden, followed by J.D. Vance, and then Mike Johnson. There is still time, if readers have suggestions. (Z)


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