The Darsch Report: January 25 to 31

Ken Paxton Goes After San Antonio Mayor

According to KSAT, in an amended petition regarding an ongoing lawsuit on San Antonio’s sanctuary city’s status, Mayor Ron Nirenburg has been implicated for the first time in the case. The lawsuit accuses the city of defying a state law requiring local governments to cooperate with federal immigration authorities.

In the petition Attorney General Ken Paxton accuses Nirenburg of instructing city staff not to contact federal authorities after 12 people believed to be immigrants without documentation were found inside a tractor-trailer in Dec. 2017.

The claims made in the petition state that the mayor told high-ranking officials that he “does not want ICE called,” and that releasing them without being handed over to federal immigration officials as a “Christmas gift” for their families.

This decision to release the suspected illegal immigrants by SAPD Chief William McManus’ has been described by Paxton as in violation of Senate Bill 4. Nirenburg called the criticism of the release as “nothing more than political theater based on a fictitious narrative.”

Texas vs Biden

On Tues., Jan. 26, Texas Attorney General Ken Paxton declared “Victory” on Twitter after a federal judge issued a temporary restraining order to stop President Joe Biden’s deportation freeze.

According to U.S. District Judge Drew Tipton in the Southern District Court of Texas, the Biden Administration will not be allowed to pause deportations of illegal immigrants. Biden had tried to do so on his first day in office, but Paxton sued the administration, arguing the president’s move was “unlawful and perilous.”

In the order, Tipton wrote that the Biden Administration had failed to “provide any concrete, reasonable justification for a 100-day pause on deportations.”

“*This* [sic] was a seditious left-wing insurrection. And my team and I stopped it.” Paxton stated on Twitter.

This executive order was one of many the Biden Administration has signed attempting to overturn many Trump Administration policies. Other orders include stopping funding for border wall construction, reentering the Paris Climate Accord, and canceling the Keystone XL pipeline project.

After Tipton’s order, Paxton celebrated the decision to “prioritize the law and safety of our citizens.”

“The Court’s decision to stop the Biden Administration from casting aside congressionally enacted immigration laws is a much-needed remedy for DHS’s unlawful action. A near-complete suspension of deportations would only serve to endanger Texans and undermine federal law,” Paxton said in a press release.

Reddit Takes on the Stock Market

Over the past week, the internet and the stock market have both been on fire as thousands upon thousands of Reddit users from r/WallStreetBets (WSB) have decided to take on hedge fund Melvin Capital and save GameStop.

Investors from the Reddit page noticed that Melvin Capital was attempting to heavily drop the price of GameStop stock ($GME) by shorting around 140% of the $GME stock that they owned. In response, they gathered as many WSB users they could and told them to buy the stock as a meme with the potential of the rise in price hurting Melvin and leaving them with some capital gains in the end. This meme has now spread to all corners of the internet and $GME as of Friday closed at a price of $328.34 compared to the price from a month ago of around $17.

Short-selling hedge funds have suffered heavily from this buying of $GME with a year-to-date mark-to-market loss on the stock of around $19.75 billion, according to data from S3 Partners

In response to the dramatic increase in stock price, brokerage apps such as E*Trade, RobinHood, TD Ameritrade, etc halted and/or limited trading of dozens of different stocks with the heaviest limitations placed on stocks being targeted by WSB like $GME, AMC Entertainment Holdings Inc. ($AMC), Blackberry Ltd ($BB), Nokia ($NOK), etc.

Still, though, short-sellers are holding onto their bearing positions or are being bought by other short sellers willing to take the bet. However, WSB is still claiming to hold or buying more of the stock and will refuse to sell.

This new week may prove who has the greater resolve, who is more stubborn, or both.

US Economy

The stock market has not been responding well to the news of Reddit taking on hedge funds as over the week the Dow Jones decreased to 29,982.62 on Friday, decreasing by -977.38 points, or -3.16 percent over its Jan. 25 close of 30,960.00. The S&P 500 decreased by -141.12 points or -3.66 percent on Friday. In addition, the Nasdaq decreased on Friday by -4.15 percent.

Military Coup in Myanmar

As of this moment, a military coup is taking place in the Republic of the Union of Myanmar (formerly known as Burma). Myanmar’s military has detained Aung San Suu Kyi and other elected leaders of the country and has declared a one-year state of emergency.

The move follows a landslide win by Suu Kyi’s party in an election the army claims was marred by fraud.

In a letter written in preparation for her impending detention, she said the military’s actions would put the country back under a dictatorship and has urged supporters to not accept this coup and to protest against it.

Aung San Suu Kyi was one of the leading voices pushing for democratic reforms in Myanmar during the military rule that ended in 2011. She was internationally hailed as a beacon of democracy and received the Nobel Peace Prize in 1991. However, her reputation heavily suffered after an army crackdown on the mostly Muslim Rohingya minority that some have described as a genocide.

Time will tell how this will change Myanmar but for now, the military has replaced all of the ministers, arrested many leaders of the National League for Democracy (NLD), and have installed former vice-president and retired Gen. Myint Swe as the temporary president.

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