Connect with us

Government

The Dollar: Too Much of a Good Thing or Bear-Trap Profit-Taking Ahead of the Weekend?

It was a dramatic week in the capital markets. Equities and commodities got hit hard while the dollar soared, especially against the major currencies typically seen as levered to world growth and whose central banks are perceived to be ahead of the Federa

Published

on

It was a dramatic week in the capital markets. Equities and commodities got hit hard while the dollar soared, especially against the major currencies typically seen as levered to world growth and whose central banks are perceived to be ahead of the Federal Reserve.  These include the dollar-bloc currencies and the Norwegian krone.  The RBNZ held off its rate hike amid a virus-induced lockdown. Nevertheless, Governor Orr made it clear a rate hike was still necessary, most likely for the next meeting on October 5.  On the other hand, Norway's central bank confirmed it was on track to hike next month.  Nevertheless, the Norwegian krone, Australian and New Zealand dollars fell over 2.5%-32% last week, the biggest decline so far this year.  

The greenback gained against nearly all the emerging market currencies.  The Brazilian real and South African rand were the weakest, depreciating by about 2.5% and 3.7%, respectively.  The JP Morgan Emerging Market Currency Index fell every day last week for a cumulative loss of nearly 1.2%, the largest in two months.  It was the sixth decline in the past eight weeks.  

There seemed to be two overriding drivers. First, the Fed confirmed what many participants have long thought.  Tapering will likely begin later this year, barring a fresh significant shock.  Although some observers may disagree that this has been the dominant view, the fact of the matter is that the short-end of the curve hardly changed in response to those FOMC minutes.  The implied yield of the June and December Fed funds futures were barely changed last week.  The latter has a hike fully discounted and the former, nearly so.  

The second driver is the spread of the pathogen.  Some observers mock New Zealand, which instituted a nationwide lockdown on discovering a single case, though several other cases have been reported.  However, the "just live with it" mantra works if many people have been vaccinated. Unfortunately, this is not the case in New Zealand and many other countries outside of North America and Western Europe.  That said, Japan is coming in strong and could surpass the US inoculations proportionately by the end of next month. However, the vaccine hesitancy in the US has eased in the face of the surge, which in a handful of states has seen ICU capacity nearly exhausted.  

Dollar Index:  The Dollar Index reached its best level since early November last week, a little below 93.75.  The high was set ahead of the weekend before it succumbed to a bout of profit-taking that snapped the winning streak at four and put in a possible bearish shooting star candlestick.  Still, the roughly 1.0% gain was the best week of the year.  The high from around the US election last year was set near 94.30, and the (38.2%) retracement objective of the slide from the pandemic peak in March 2020 (~103.00) is found closer to 94.50.  Technically, it looks stretched, flirting with the upper Bollinger Band (~93.65).  However, while the momentum indicators are elevated, they have not begun turning lower.  That said, a break of 93.10-93.20 area would be the first sign that the bulls may be tiring.  

Euro:  The euro fell below $1.1700 for the first time in nine months last week.  The week's high was set on Monday just above $1.18, and it held above $1.17 until the middle of the week, and despite intraday penetration, it still closed back above that threshold.  Nevertheless, it barely traded above it the following day, and ahead of the weekend, a new marginal low was made slightly below $1.1665. It finished the week slightly below $1.17.  In the 12-weeks since the end of May, the euro has risen four times, and during this run, the euro has depreciated by around 5.5 cents (~4.5%).  The MACD and Slow Stochastics are not flashing any strong signal that the euro has gone too far too quickly, but the lower Bollinger Band is nearby ($1.1650).  Below there, the next important technical area is $1.1600. Initial resistance extends toward $1.1720. 

Japanese Yen:  The dollar held the JPY109-level at the start of last week.  It has not closed below there in three months.  The recovery stalled around JPY110.25 on August 19 before consolidating ahead of the weekend.  With only a few exceptions, the greenback has been in a JPY109-JPY111.00 trading range since the end of May.  The momentum indicators are not particularly helpful presently.  The lower Bollinger Band is found near JPY109, while the upper one is slightly below JPY110.70.  If the US 10-year yield is key, it is important to note that it is at the lower end of its range, around 1.20% (though it has spiked lower, it has not closed below 1.17% since February).  Provided it holds, the bias would be for a stronger dollar.  

British Pound:  Sterling fell by about 1.75% last week, its largest decline in two months against the dollar, and it was the third weekly decline.  It continued to trade heavily against the euro after rising to its best level since February 2020 on August 10. The MACD and Slow Stochastic are still moving lower, and the close was the lowest in six months even though cable held above last month's low (~$1.3570). Nearby support is extended to around $1.3550, and a convincing break could spur a move toward $1.3400.  A caveat comes from the Bollinger Band (~$1.3665), sterling closed below for the last two sessions.  It probably takes a move above $1.3700 to boost the probability that a low is in place.  

Canadian Dollar:  The US dollar spiked to almost CAD1.2950 ahead of the weekend, a new high for the year.  A lethal cocktail of a Fed preparing to taper, a virus mutation again deterring a return to "normal" and raising questions over demand, and a sharp drop in commodities, including a 7.6% drop in WTI and nervous equity investors weighed on the Loonie.  It looks overdone.  At its peak before the weekend, the greenback was more than three standard deviations above the 20-day moving average (~CAD1.2875).  Despite the paring of its earlier gains, it finished the week with two consecutive closes above the Bollinger Band (~CAD1.2775), set at two standard deviations above the 20-day moving average  The momentum indicators are still trending higher.  Previous resistance around CAD1.28 may now offer support.  Still, ahead of the weekend,  a bearish shooting star candlestick had been formed.  

Australian Dollar:  The Aussie was the weakest of the major currencies, losing nearly 3.2% last week, dropping to its lowest level since last November.  It stabilized ahead of the weekend after falling to almost $0.7100.  The $0.7000-$0.7050 area offers the next technical targets.  It, too, looks terribly oversold by some measures.  It closed below its lower Bollinger Band for the past four consecutive sessions.   Both the MACD and Slow Stochastic are overextended, though neither is poised to turn higher in the near term.  Much technical damage has been done.  Initial resistance is seen in the $0.7160-$0.7180 area.  The New Zealand dollar also fell to its lowest level since last November ($0.6800) and closed for the fourth session below its lower Bollinger Band (~$0.6850). A break of $0.6800 could signal a move toward $0.6700.  The Aussie has approached key support against the Kiwi near NZD1.0400. 

Mexican Peso:  The dollar rose against the peso every day last week, and the biggest push came before the weekend.   The 1% gain pre-weekend advance accounted for a sizeable part of the week's 2.4% gain.  The combination of poor risk appetites, Fed tapering, and broad weakness in emerging markets weighed on the peso.  The MSCI Emerging Market Index fell 7% in July and is off by almost 4% here in August.  The JP Emerging Market Currency Index fell by about 1.25% last week.  The greenback briefly traded above MXN20.45 and closed above the 200-day moving average (MXN20.1150) for the first time in a couple of months.  The June high, which is the next important technical area, was set near MXN20.75.  Initial support may be encountered near MXN20.25.

Chinese Yuan:  The greenback's strength proved too much for the redback, closing above CNY6.50 for the first time in a month. For the most part, since mid-June, the dollar has been in a CNY6.45-CNY6.50 range.  Yet, while the yuan is soft against the dollar, it is near five-year highs against its trade-weighted basket (CFETS).   The PBOC's reference rate for the dollar has been set mostly in line with expectations.  Given that the PBOC may cut reserve requirements again while the Fed moves toward tapering, under-performance of Chinese stocks, and the ongoing campaign to rein in Chinese businesses, one would have expected the yuan to weaken.  Still, the bout of profit-taking seen in North America before the weekend saw the dollar slip against the offshore yuan back below CNY6.50 in late dealings.  


Disclaimer 

Read More

Continue Reading

Spread & Containment

Gates-backed PhIII study tuberculosis vaccine study gets underway

A large study of an experimental vaccine for the world’s biggest infectious disease has finally kicked off in South Africa.
The Bill & Melinda Gates…

Published

on

A large study of an experimental vaccine for the world’s biggest infectious disease has finally kicked off in South Africa.

The Bill & Melinda Gates Medical Research Institute (MRI) will test a tuberculosis vaccine’s ability to prevent latent infections from causing potentially deadly lung disease. Last summer the nonprofit said it would foot $400 million of the estimated $550 million cost of running the 20,000-person Phase III trial.

It’s a pivotal moment for a vaccine whose origins date back 25 years when scientists identified two proteins that triggered strong immunity to the bacterium that causes tuberculosis. A fusion of those proteins, paired with the tree bark-derived adjuvant that helps power GSK’s shingles shot, comprise the so-called M72 vaccine.

Thomas Scriba

After decades of failures in the field, the vaccine impressed scientists in 2018 when GSK found that it was 54% efficacious at preventing lung disease in a 3,600-person Phase IIb study.

But the Big Pharma decided that a full-blown trial was too expensive to conduct on its own. Gates MRI stepped in to license the vaccine in early 2020, right before the Covid pandemic shifted global vaccine priorities towards the coronavirus, further stalling the tuberculosis shot.

“There’s been frustration that it’s taken so long to get this trial up and running,” Thomas Scriba, deputy director of immunology for the South African Tuberculosis Vaccine Initiative, told Endpoints News last summer.

At last, the vaccine is getting a chance to prove itself in a bigger study. If successful, it could lead to the first new shot for tuberculosis in over a century.

Emilio Emini, CEO of the Gates MRI, told Endpoints that the initial results may come in roughly four to six years. “Hopefully this will galvanize a refocus on TB,” he said. “It’s been ignored for many, many years. We can’t ignore it anymore.”

A substantial impact

Even though an existing vaccine helps protect babies and children against severe tuberculosis, the bacterium responsible for the disease still causes roughly 10 million new cases and 500,000 deaths each year.

Emilio Emini

By vaccinating adolescents and adults who test positive for infections but don’t have symptoms of lung disease, the Gates MRI hopes the shot will help prevent mild infections from becoming severe ones, curtail transmission of the bug, which is predominantly driven by people with lung disease, and reduce deaths.

“The impact would be substantial,” Emini said. But he cautioned that the biology behind mild and severe diseases is still mysterious. “The reality is that no one really knows what keeps it under control.”

The study, which will take place at 60 sites across seven countries, will include some people who are not infected with tuberculosis to ensure that the vaccine is safe in that broader population.

“Having to pre-test everybody is not going to make the vaccine easy to deliver,” Emini said. If the vaccine is ultimately approved, it will likely be used in targeted communities with high tuberculosis, rather than across a whole country, he added. “In practice, you would immunize everybody in those populations.”

Emini described the Gates MRI’s rights to the vaccine as “close to a worldwide license.” GSK retained rights to commercialize the vaccine in certain countries but declined to specify which ones.

A spokesperson for GSK said that the company “has around 30 assets under development specifically for global health … none of which are expected to generate significant return on investment.”

“It is not sustainable or practical in the longer term for GSK to deliver all of these alone. So we continue to work on M72, but in partnership with others,” the spokesperson added.

If the shot works, Emini said that the Gates MRI will sublicense it to a manufacturer that will be responsible for making and marketing the vaccine. The details are still being worked out, he noted.

Read More

Continue Reading

Government

Choosing over the counter drugs for COVID 19? It’s complicated

COVID-19 illness may include symptoms such as a sore throat, fever, cough and fatigue. In January, the United States Centers for Disease Control and Prevention…

Published

on

COVID-19 illness may include symptoms such as a sore throat, fever, cough and fatigue. In January, the United States Centers for Disease Control and Prevention (CDC) issued its most recent guidelines for the use of over the counter (OTC) drugs for COVID-19. Specifically, its guidelines state that most people with COVID-19 have mild illness and can recover at home while treating symptoms with OTC medicines such as acetaminophen (Tylenol) or ibuprofen (Motrin, Advil). 

Credit: Florida Atlantic University

COVID-19 illness may include symptoms such as a sore throat, fever, cough and fatigue. In January, the United States Centers for Disease Control and Prevention (CDC) issued its most recent guidelines for the use of over the counter (OTC) drugs for COVID-19. Specifically, its guidelines state that most people with COVID-19 have mild illness and can recover at home while treating symptoms with OTC medicines such as acetaminophen (Tylenol) or ibuprofen (Motrin, Advil). 

Researchers from Florida Atlantic University’s Schmidt College of Medicine and academic colleagues say it’s more complicated. They suggest that selecting an OTC medication to alleviate mild symptoms of COVID-19 should be based on the entire benefit-to-risk profile of the patient. Moreover, they say clinical decisions should be made by the health care provider for each of his or her patients.

In a review, published in The American Journal of Medicine, researchers take a closer look at both the potential benefits and risks of acetaminophen, non-steroidal anti-inflammatory drugs (NSAIDs) – such as ibuprofen, as well as aspirin for the selection of OTC drugs to treat mild symptoms of COVID-19.

Traditional nonspecific NSAIDs such as the shorter acting ibuprofen and longer acting naproxen have been used to treat COVID-19. These widely used OTC drugs reversibly and non-specifically inhibit both cyclooxygenase enzyme isoforms. This results in systematic reduction in the synthesis of prostaglandins resulting in anti-inflammatory and fever-reducing effects. The researchers caution, however, that both ibuprofen and naproxen have similar but greater side effect profiles than aspirin, such as gastroenteritis and peptic ulcers.

Acetaminophen is one of the most frequently used OTC drugs in the U.S. and worldwide as a treatment for fever, allergic symptoms, headaches, myalgia, symptoms of the common cold, and most recently COVID-19. Acetaminophen was originally marketed as an alternative to aspirin for treatment of mild to moderate pain based on reduced mucosal gastrointestinal side effects. The authors caution that even at daily doses of 4,000 milligrams per day, generally accepted as safe for adults, acetaminophen can be toxic to the liver and may result in the onset of acute liver failure. In the U.S., acetaminophen is the leading reason for calls to Poison Control Centers with more than 100,000 cases per year. These circumstances account for more than 2,600 hospitalizations and 450 deaths in the U.S. due to acute liver failure. 

Aspirin, or acetylsalicylic acid, inhibits the production of prostaglandins, which are responsible for mediating pain, inflammation and fever. The authors say that the beneficial effects of aspirin include anti-platelet, analgesic, antipyretic or anti-fever and anti-inflammatory properties. Aspirin is rapidly absorbed when taken orally and has a half-life of around four hours, after which it is mostly metabolized by the kidneys.

The researchers note that the anti-inflammatory benefits of aspirin should provide symptomatic relief of fever and body aches in COVID-19. They underscore, however, that health providers should view these in the context of the increased risks of bleeding, principally gastrointestinal. Further, COVID-19 itself may already predispose individuals to bleeding as well as to clotting abnormalities.

“We believe that health care providers should make individual clinical judgments for each of his or her patients in the selection of OTC drugs to treat symptoms of COVID-19. This judgement should be based on the entire benefit to risk profile of the patient,” said Charles H. Hennekens, M.D., Dr.PH, senior author, first Sir Richard Doll Professor and senior academic advisor in FAU’s Schmidt College of Medicine. “It is our belief that the individual health care provider knows far more about each of his or her patients than anyone, including expert members of guideline committees.”

The authors conclude that when the totality of evidence is complete, health care providers can make the most rational individual clinical judgements for their patients and policymakers for the health of the general public.

The authors believe that, at present, the totality of evidence is incomplete and requires reliable evidence from large- scale randomized trials designed a priori to do so, which is necessary to develop rational guidelines. They also believe that any guidelines should provide only guidance to health care providers. Currently, these considerations pose new clinical challenges for health care providers in prescribing OTC drugs to treat COVID-19. 

“The astute and judicious individual clinical decision making of health care providers for each individual patient based on all these considerations has the potential to do far more good than harm. Finally, guidelines should provide guidance to individual health care providers,” said Hennekens.

Study co-authors are Gage Collamore, a second-year medical student; Mark J. DiCorcia, Ph.D., an associate professor and associate dean for educational affairs and admissions; Yash Nagpal, a second-year medical student; and Larry Fiedler, M.D., a board certified gastroenterologist and an affiliate associate professor, all within FAU’s Schmidt College of Medicine; Michael A. Garone, M.D., a board-certified gastroenterologist and clinical assistant professor at George Washington University Hospital; and David L. DeMets, Ph.D., emeritus Halperin Professor and founding chair of biostatistics and informatics; and Dennis G. Maki, M.D., the Ovid O. Meyer Professor of Medicine; both at the University of Wisconsin School of Medicine and Public Health.

Hennekens and Maki served for two years as lieutenant commanders in the U.S. Public Health Service as epidemic intelligence service (EIS) officers with the CDC. They served under Alexander D. Langmuir, M.D., who created the EIS and directed the epidemiology program at the CDC, as well as Donald A. Henderson, M.D., chief of the Virus Disease Surveillance Program at the CDC. Langmuir and Henderson made significant contributions to the eradication of polio and smallpox using widespread vaccinations and public health strategies of proven benefit and had extraordinary collaborations with local, state, federal and international health authorities.   

– FAU –

About the Charles E. Schmidt College of Medicine:

FAU’s Charles E. Schmidt College of Medicine is one of approximately 157 accredited medical schools in the U.S. The college was launched in 2010, when the Florida Board of Governors made a landmark decision authorizing FAU to award the M.D. degree. After receiving approval from the Florida legislature and the governor, it became the 134th allopathic medical school in North America. With more than 70 full and part-time faculty and more than 1,300 affiliate faculty, the college matriculates 64 medical students each year and has been nationally recognized for its innovative curriculum. To further FAU’s commitment to increase much needed medical residency positions in Palm Beach County and to ensure that the region will continue to have an adequate and well-trained physician workforce, the FAU Charles E. Schmidt College of Medicine Consortium for Graduate Medical Education (GME) was formed in fall 2011 with five leading hospitals in Palm Beach County. The Consortium currently has five Accreditation Council for Graduate Medical Education (ACGME) accredited residencies including internal medicine, surgery, emergency medicine, psychiatry, and neurology.

 

About Florida Atlantic University:
Florida Atlantic University, established in 1961, officially opened its doors in 1964 as the fifth public university in Florida. Today, the University serves more than 30,000 undergraduate and graduate students across six campuses located along the southeast Florida coast. In recent years, the University has doubled its research expenditures and outpaced its peers in student achievement rates. Through the coexistence of access and excellence, FAU embodies an innovative model where traditional achievement gaps vanish. FAU is designated a Hispanic-serving institution, ranked as a top public university by U.S. News & World Report and a High Research Activity institution by the Carnegie Foundation for the Advancement of Teaching. For more information, visit www.fau.edu.


Read More

Continue Reading

Government

Supreme Court’s questions about First Amendment cases show support for ‘free trade in ideas’

These cases have asked the justices to consider how to apply some of the most sweeping constitutional protections – those of free speech – to an extremely…

Published

on

Clouds float over the Supreme Court building on March 15, 2024. Celal Gunes/Anadolu via Getty Images

This term, the U.S. Supreme Court has heard oral arguments in a total of five cases involving questions about whether and how the First Amendment to the Constitution applies to social media platforms and their users. These cases are parts of a larger effort by conservative activists to block what they claim is government censorship of people who seek to spread false information online.

The most recently heard case, on March 18, 2024, was Murthy v. Missouri, about whether the federal government’s direct communication with social media platforms, specifically about online content relating to the COVID-19 public health emergency, violated the First Amendment rights of private citizens.

The case stemmed from the Biden administration’s efforts to combat misinformation that spread online, including on social media, during the pandemic. The plaintiffs said White House officials “threatened platforms with adverse consequences” if they didn’t take down or limit the online visibility of inaccurate information – and that those threats amount to the unconstitutional suppression of free speech from private individuals who shared content that contained debunked conspiracy theories and contradicted scientific evidence.

It is not uncommon for government officials to informally pressure private parties, like social media platforms, into limiting, censoring or moderating speech by third parties. As Justice Amy Coney Barrett seemingly implied during the Murthy v. Missouri oral arguments, “vanilla encouragement” by government officials would be constitutionally permissible. But when the informal pressure turns into bullying, threats or coercion, it may trigger First Amendment protections, as the Supreme Court ruled in another case called Bantam Books v. Sullivan, from 1963.

But the Biden administration said its effort to fight COVID misinformation was normal activity, in which the government is allowed to express its views to persuade others, especially in ways that advance the public interest.

Two men in suits stand in a room with screens and flags.
President Joe Biden and Surgeon General Vivek Murthy attend a meeting in 2022. Kevin Dietsch/Getty Images

Several justices seemingly agreed with the Biden administration and accepted its view that ordinary pressure to persuade is permissible.

More broadly, the Supreme Court has wrestled with the application of the First Amendment to cases involving social media platforms. Earlier this term, the court heard several cases that involved content moderation – both by the platforms themselves and by public officials using their own social media accounts. As Justice Elena Kagan put it during one round of oral arguments: “That’s what makes these cases hard, is that there are First Amendment interests all over the place.”

Perhaps most fundamentally, the court seeks to evaluate the relationship between social media platforms and public officials.

A public official or a private social media user?

On March 15, the Supreme Court released its unanimous decision in Lindke v. Freed – another case involving social media platforms. The issue in that case was whether a public official can delete or block private individuals from commenting on the official’s social media profile or posts.

This case involved James Freed, the city manager of Port Huron, Michigan, and Facebook user Kevin Lindke. Freed initially created his Facebook profile before entering public office, but once he was appointed city manager, he began using the Facebook profile to communicate with the public. Freed eventually blocked Lindke from commenting on his posts after Lindke “unequivocally express(ed) his displeasure with the city’s approach to the (COVID-19) pandemic.”

The court ruled that on social media, where users, including government officials, often mix personal and professional posts, “it can be difficult to tell whether the speech is official or private.” But the court unanimously found that if an official possesses “actual authority to speak” on behalf of the government, and if the person “purported to exercise that authority when” posting online, the post is a government action. In that case, the official cannot block users’ access to view or comment on it.

The court ruled that if the poster either does not have authority to speak for the government, or is not clearly exercising that authority when posting, then the message is private. In that situation, the poster can restrict viewing and commenting because that is an exercise of their own First Amendment rights. But when a public official posts in their official capacity, the poster must respect the First Amendment’s limitations placed on government. The court sent a similar case, O'Connor-Ratcliff v. Garnier, back to a lower court for reconsideration based on the ruling in the Lindke case.

An illustration of a person surrounded by phone and computer screens spouting all manner of information and noise.
Online information can be a cacophony from which it is hard to discern truth and accuracy. Nadezhda Kurbatova/iStock / Getty Images Plus

Who controls what’s online?

At the root of the plaintiffs’ claims in both these cases is content moderation – whether a public official can moderate another user’s content by deleting their posts or blocking the user, and whether the federal government can interact with social media platforms to mitigate the spread of debunked conspiracy theories and scientifically disprovable narratives about the pandemic, for instance.

Ironically, though conservatives argue that the federal government cannot interact with the social media platforms to influence their content moderation, Florida and Texas – states governed by Republican majorities in the statehouse and Republican governors – enacted state laws that seek to restrict the platforms’ own content moderation.

While the laws in each state differ slightly, they share similar provisions. First, both laws contain “must-carry provisions,” which “prohibit social media platforms from removing or limiting the visibility of user content in certain circumstances,” according to the Knight First Amendment Institute at Columbia University.

Second, both laws require the social media platforms to provide individualized explanations to any user whose content is moderated by the platform. Both laws were passed to combat the false perception that the platforms disproportionately silence conservative speech.

The Florida and Texas laws were challenged in two cases whose oral arguments were heard by the Supreme Court in February 2024: Moody v. NetChoice and NetChoice v. Paxton, respectively. Florida and Texas argued that they can regulate the platforms’ content moderation policies and processes, but the platforms argued that these laws infringe on their editorial discretion, which is protected by well-established First Amendment precedent.

During oral argument in both cases, the justices appeared skeptical of both laws. As Chief Justice John Roberts stated, the First Amendment prohibits the government, not private entities, from censoring speech. Florida and Texas argued that they enacted these laws to protect the free speech of their citizens by limiting the platforms’ ability to moderate content.

But social media users do not have any First Amendment protections on the platforms, because private entities, like Facebook, are free to moderate the content on their platforms as they see fit. Roberts was quick to respond to Texas and Florida: “The First Amendment restricts what the government can do, and what the government’s doing here is saying you must do this, you must carry these people.”

Where are the online boundaries of free speech?

Collectively, these cases demonstrate the Supreme Court’s interest in defining the boundaries of First Amendment protections as they relate to social media platforms and their users. Moreover, the court seems focused on establishing the limits of the relationship between government and social media platforms.

The justices’ questions during the NetChoice cases suggest that they are skeptical of government regulation that forces social media platforms to carry certain content. In this way, the justices seem poised to affirm the principle that government cannot directly or formally force an individual or, in this case, a private company, to convey a message that it does not wish to carry.

But the justices’ questions during Murthy v. Missouri seem to suggest that it is not a violation of the First Amendment for government officials to informally interact or communicate with social media platforms in an attempt to persuade them not to carry material the government dislikes.

Considering all of these cases together, the court seems posed to further promote a robust “free trade in ideas,” which was a theory first invoked in 1919 by Justice Oliver Wendell Holmes in Abrams v. United States. In Lindke v. Freed, the court identified the distinction between private speech on social media platforms by a public official, which is protected by the First Amendment, and professional speech, which is subject to First Amendment limitations that protect others’ rights.

In the NetChoice cases, the court seems ready to limit a state’s ability to directly compel social media platforms to convey messages that they may moderate. And in Murthy v. Missouri, the justices seem ready to affirm that while indirect compulsion may be unconstitutional, ordinary pressures to persuade social media platforms are permissible.

This promotion of a robust marketplace of ideas appears to stem from neither giving the government extra powers to shape public discourse, nor excluding government from the conversation altogether.

Wayne Unger does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Read More

Continue Reading

Trending