Texas AG: Price Gouging Is 'Like Porn, You Know It When You See It'

Texas Attorney General Ken Paxton joined Thursday’s “The Glenn Beck Radio Program” to talk about Texans’ “remarkable” response to Tropical Storm Harvey as well as the politics of price gouging.

“Overall, it’s been a remarkable effort,” Paxton said. “Any loss of life is horrible, but it’s been amazingly low given the magnitude and the length of this storm.”

Texas Gov. Greg Abbott and state and federal officials have worked together to mitigate damage from the storm and make sure stranded people are rescued. They have been joined by volunteers from around the country.

“This is the toughest time in my lifetime,” Glenn Beck said. “I’ve never seen our country more divided. And look at what the people of Texas [are doing] coming from all over the region just to go in and help.”

There will be some fluctuation for the price of water, gasoline and other necessities simply because the storm has shut down the country’s biggest oil refinery, reducing how much gas is available to use and to transport goods.

“Gas will go up to some degree,” Paxton said. “Supply and demand is going to be affected here.”

While some expense is normal, an unreasonable increase to products that the government defines as price gouging is against the law.

“Do you remember when the Supreme Court had to deal with pornography, and they basically said, 'We know it when we see it?'  When I see gas prices at $20 a gallon, I know it’s price gouging. When I saw water at $100 a case, I know it’s price gouging,” Paxton said. “When I see gas at $2.57, it’s probably not price gouging.”

Based on historic price and context from the current market, officials use discretion to keep people from being ripped off, he asserted.

“We’re not talking about price gouging as it relates to anything other than things that really are critical to people surviving,” Paxton said.

This article provided courtesy of TheBlaze.

GLENN: Lots to talk about today. First, I don't know what it's like in your part of the country, but here in Texas, I think there's going to be a lot of people that are late for work. Because anybody who got up this morning and was driving in and saw the little red light go on and went, "Uh-oh, I got to go get gas," you are now sitting in a line. And that line is getting longer. We could be out of gas in Texas by the -- by the weekend.

Ninety percent of all of the gasoline that fuels the cars at least in Texas -- and I bet it's the greater southwest region, comes out of Houston. Forty-two percent of all of the jet fuel comes out of Houston. Those refineries are now gone, or at least shut down.

We don't know when they will start refining again and when trucks will be replenishing again. This is going to affect all of us. We just have to keep our heads about us. And we also have to discuss, how are we going to get some of the -- how is this going to affect the people who are just getting on the road with their trucks and their cars, and they're going to help?

You can't really drive down to Houston, four hours away, if you can't get gas somewhere along the way to get you back.

We've had another wrinkle added now to the hurricane in Houston. We begin there and also talk a little about price gouging with the attorney general in Texas. Ken Paxton joins us. We begin, right now.

(music)

GLENN: This is a really weird situation because the -- the -- if I warn you about gas, it's going to make people go and sit in lines and everybody starts to hoard gas. And I got to get my lawn mower filled. It's probably not the right move.

But I warn you now because I want you to think about this weekend. This is Labor Day Weekend. Especially if you're in the -- in the Dallas area or the Texas area, we get our gas from those refineries.

JEFFY: Yeah, but nobody has to worry until after this program is over.

GLENN: Right.

JEFFY: Then it's fine. Once I go fill up my car, after the show, then -- then they can worry.

GLENN: Right. Well, we got the tweet from a guy in New York just a little while ago that said -- what was it? It went up 17 cents in an hour, or half an hour?

STU: Yeah, another person writes: Gas here in Cincinnati went up 2.23 to 2.59 in the day.

GLENN: I mean, you know, it's going to impact all of us, this hurricane. It's going to impact us hard. But those oil refineries -- it's my understanding, these oil refineries were locked down tight. We didn't have a problem with winds, just flooding. And it's my understanding that, you know, this can and will come back online as soon as the waters recede. And they're going to start those plants back up. Is that your understanding, Stu? Not really?

STU: Yeah. I'm not...

GLENN: Can we get? Keith! Let's see if we can get somebody on from the oil industry. I know they're probably not busy at all, but to give us some information about these oil refineries. And perhaps Ken Paxton knows a little about this, even though this is not his area of expertise. He is our attorney general.

Ken, how are you, sir?

KEN: I'm doing well. How are you this morning?

GLENN: I'm good. Thank you for all of the hard work, and please pass on to the governor how proud we are of him and what a good job he is doing.

KEN: You know, I would have to totally agree. The magnitude of the storm and what they've had to deal with over a long period of time, and obviously still continues. I'm amazed, the job that both the federal and state government have done working together.

GLENN: You know, I know that there was a disagreement -- and I -- I would have been on the wrong side of this disagreement, I think. And I don't know who had what side, and it doesn't matter.

But there was a disagreement on when to evacuate people. And I think the city of Houston said, "No, no, we're not going to evacuate." Which in New Orleans, worked out horribly.

The way this is stacking up, it might have been a blessing that we didn't have a whole bunch of people, a million people on the road, stuck in traffic on Houston when this thing rolled in.

KEN: Yeah, it's so hard to know. Because you've got 7 million people or more down in the Houston area. And to try to evacuate that -- we're not talking about evacuating some small town. We're talking about a massive effort. I don't even know how you get that many people out.

So I don't know, maybe some could have evacuated. We could look at that later.

I do think overall, it's been a remarkable effort. And if you look at loss of life, obviously any loss of life is horrible, but it's been amazingly low, given the magnitude and the length of this storm and what we're still dealing with.

GLENN: I have to tell you, I can't get my arms around how low those numbers are.

Are we concerned that when the waters recede, we're going to just start going through homes, and we're just going to find a lot of people, or are we pretty sure that this is relatively stable? I mean, we know we're going to find a lot more people, but that we haven't lost an eye-bleed amount of people, is astonishing.

KEN: Yeah. You just think about the magnitude of the storm coming to shore, we could have lost hundreds, if not thousands of people. And who knows what the future holds and what we're going to find. I can just say, I think they've done an amazing job rescuing people. They've gotten resources in place.

The federal government was there early and quick and offered up everything we needed. And Abbott and his team have done an amazing job, just keeping this thing going and making sure that we get this thing done right.

GLENN: I will tell you that this is where -- you know, having the governor and the -- and the president and everybody on board come in handy as now cleanup and real big, huge infrastructure pieces need to be moved.

But I have been -- it is -- it is proof to me why I moved here five or six years ago, when I said on the air, "There are going to be tough times, and you just have to know that the people around you have the same kind of attitude, that when push comes to shove, we're all neighbors."

I mean, we've never been -- I don't remember the 1960s. I was like four.

KEN: Me too.

GLENN: But I know those were tough times in our -- in my lifetime. This is the toughest time in my lifetime. I've never seen our country more divided. And look at the people of Texas, coming from all over the region, just to go in and help. Without the government, without anybody organizing, just, "I got a boat. I'm going in."

KEN: Well, not only that, hundreds of people have done that, and it wasn't like it was not risky for them. They were risking their lives.

GLENN: I know.

KEN: You know, there's just so much at stake for them personally. They didn't have to do it. You would think people would want to go out and save their own families, and yet they came back to help. So it does say a lot about the type of people that live in Texas, and it's really encouraging, given what you just talked about, the divisive nature of what's going on in our country and how difficult it is. And yet, you see in Texas, we -- we've had a devastating hurricane, devastating storms. And yet, you know we'll come back.

GLENN: Ken, I know this is not in your purview, and I'm sorry to hit you with this and even the questions I'm asking you. Because this is not what you do for a living.

But have you heard any talk at all about the gasoline situation? We're seeing -- I mean, stopping at four different gas stations here in the Dallas area on the way into work, four of them had signs on the pumps, out of gas. Ninety percent of all of the fuel coming into Texas is coming in from those refineries that have all been shut down. Are we concerned at all about running out of gas temporarily? Do you have any clue as to what's happening with the gas situation?

KEN: Well, I do think that we're going to start getting supplies from other places. But I think gas is going to go up to some degree. Obviously, supply and demand is going to be affected here. But I do think we're going to have other places that it's going to come from. The supply chain is going to change a bit until those refineries in Texas open back up.

GLENN: And the 42 percent of the fuel for jet fuel comes out of Houston. How long before these refineries can open up. Do you know that?

KEN: That I don't know. I think it's been so dependent on when the rain stops and the water receded. So I believe it will be -- I'm hopeful in the next week they'll open back up. It's an issue. But I do think, as I said, I think the supply chain is changing to address that. It's just prices are going to go up some.

GLENN: So that brings me to what we actually wanted to talk about, and that is price gouging. We just had a listener tweet in from New York and said, "I went. I brought my car in. It was, what? 2.41 or 2.43. I fill up. I go and I get my mom's car. I come back, and it's 2.57, 30 minutes later." And that was in New York.

KEN: That was in New York? Wow.

GLENN: Yes.

KEN: It's going to -- look, it's the natural supply and demand. Prices are going to go up, until the refineries are back open. That's just the reality. We're going to see higher gas prices, for at least, you know, the next few weeks.

GLENN: So I, in my head, can make the leap to things like water. I don't want -- I mean, water -- you have to have water to live. But that stops -- by not -- by saying you can't raise the price, that stops the trucker or the somebody else that might live, you know, in another state, who says, you know what, I'm going to go buy a bunch of water, because I'll be able to make it up. And I'm going to deliver a whole truckload of it, and I'm going to sell it.

So it actually, by -- by disrupting the capitalist system or the free market system, it actually can end up hurting the -- the efforts. How do you balance that?

How do you define price gouging and -- and -- and know where the line is?

KEN: Do you remember when the Supreme Court had to deal with pornography, and they basically said, "We know it when we see it?"

So when I see gas prices at $20 a gallon, I know it's price gouging. When I see water at $100 a gas, I know it's price gouging. When I see gas at 2.57, it's probably not price gouging.

So, you know, we take a look at it and we try to figure out based on the historic price, based on what's going on in the market, are these people taking advantage of people in crisis? And, you know, there is some -- there is definitely some discretion here. And we're not trying to stop the market from working. We're just trying to stop people from ripping people off.

STU: Ken, are you at all uncomfortable with -- and I know you're trying to do good work here and help people in need. But are you at all uncomfortable with the government making a standard of, we know it when we see it?

KEN: Well, so, you know, my job isn't to make laws. I have to deal with the laws I'm given. Whether I would have passed a law exactly like this --

GLENN: Yes.

KEN: As I know from being in the legislature, I never got to pass any law that I exactly liked. I get to -- I get to negotiate laws that were partly what I liked and partly what I didn't.

So, yeah. I'm a free market guy. But I don't think -- in this case, we're not talking about efficient markets. We are talking about really inefficient markets. And I don't think we necessarily have a free market right now in Houston. We have limited supplies. And we've got -- we're talking about critical supplies.

So we're not talking about price gouging as it relates to anything other than things that really are critical to people surviving.

GLENN: You know, Ken, there's an article. And I'm not going to mention where. You know, some person on the left said, "What we're seeing in Houston is not miraculous. People just -- people just rise to the occasion." And I think that's absolutely untrue. We have seen other places and other disasters where people don't necessarily rise to the occasion. And the bad guys take advantage of the occasion. And, you know, are doing some really horrible things.

Are we missing the stories of the violence and the looting and everything else that is happening in Houston? Because I know some of it is happening.

But are -- are we just not seeing a large level of that taking root in Houston?

KEN: You know, I don't think there's a large level. Look, I may -- we could be wrong. We may find more than there is. But part of it is, it's hard for looters to get in and out. They're limited by the same things we're limited by. And so it's made it difficult for them to loot. Now, as the water recedes, we may have more of a problem. But I know that local law enforcement is focused on that. Although, they're particularly focused on rescuing lives first.

But as the waters recede, we'll see what happens. Hopefully, you know, there won't be a lot of that going on.

GLENN: You know, there was a story that came out that President Bush just allowed all of the sales of the transfer of, you know, some serious armaments or, you know -- you know, armed personnel, et cetera, to our local police. And that bothers me. It bothered me under George Bush. And it bothered me under Barack Obama. It bothers me under this president.

I don't understand why that's happening. I want our police to be effective and to be safe. But why isn't that equipment just being transferred to our National Guard. Because they're the ones that really need. We don't really need it to serve a warrant of arrest to somebody.

Why -- why is that happening? And what are we doing with that and our police? Do you know?

KEN: I don't know. I'm not involved in that transfer.

GLENN: Okay.

KEN: I don't know that I disagree with you, that local police shouldn't be armed like they're the US military. That would be better served put into the hands of the National Guard. So I tend to agree with your assessment of that. I have the same concerns you do.

GLENN: One last question: Besides prayer, what can we do to help the governor and everybody else in service the next week or so?

KEN: Well, that's a great question. I think you can pray. That's obviously very important. Still people that are in harm's way. Still people that are rescuing. And that will continue. But there's also great organizations on the ground. Like Samaritan's Purse. There's a group called Minute Man out of Texas, actually out of McKinney, Texas, that I'm very aware that are on the ground. We have groups like the Red Cross.

There are some really good groups that are -- that are down there doing -- also, Texas Baptist Men. So those are at least three or four of the groups that I know of, that are down there now that know what they're doing, that are, you know, legitimate organizations. And that are trying to make a difference.

So you can give money to them. I think they will make a difference down there.

GLENN: Ken, thank you very much. Appreciate it.

KEN: Thank you. Absolutely.

GLENN: By the way, yesterday, I got word that Mercury One -- this is about 3 o'clock in the afternoon, hit a million dollars from this audience. And we can't thank you enough. And you can donate.

Trouble ahead for the housing market

CHRIS J RATCLIFFE/AFP/Getty Images

Our good friend John Rubino over at DollarCollapse.com just released an analysis titled US Housing Bubble Enters Stage Two: Suddenly Motivated Sellers.

He reminds us that housing bubbles follow a predictable progression:

  • Stage One: Mania -- Prices rise at an accelerating rate as factors like excess central bank liquidity/loose credit/hot foreign money drive a virtuous bidding cycle well above sustainably afforable levels.
  • Stage Two: Peak -- Increasingly jittery owners attempt to sell out before the party ends. Supply jumps as prices stagnate.
  • Stage Three: Bust -- As inventory builds, sellers start having to lower prices. This begins a vicious cycle: buyers go on strike not wanting to catch a falling knife, causing sellers to drop prices further.

Rubino cites recent statistics that may indicate the US national housing market is finally entering Stage Two after a rip-roaring decade of recovery since the bursting of the 2007 housing bubble:

  • the supply of homes for sale during the "all important" spring market rose at 3x last year's rate
  • 30 of America's 100 largest cities now have more inventory than they did a year ago, and
  • mortage applications for new homes dropped 9% YoY

Taken together, these suggest that residential housing supply is increasing as sales slow, exactly what you'd expect to see in the transition from Stage One to Stage Two.

If that's indeed what's happening, Rubino warns the following comes next:

Stage Two’s deluge of supply sets the table for US housing bubble Stage Three by soaking up the remaining demand and changing the tenor of the market. Deals get done at the asking price instead of way above, then at a little below, then a lot below. Instead of being snapped up the day they’re listed, houses begin to languish on the market for weeks, then months. Would-be sellers, who have already mentally cashed their monster peak-bubble-price checks, start to panic. They cut their asking prices preemptively, trying to get ahead of the decline, which causes “comps” to plunge, forcing subsequent sellers to cut even further.
Sales volumes contract, mortgage bankers and realtors get laid off. Then the last year’s (in retrospect) really crappy mortgages start defaulting, the mortgage-backed bonds that contain their paper plunge in price, et voila, we’re back in 2008.

Rubino's article is timely, as we've lately been seeing a proliferation of signs that the global boom in housing is suddenly cooling. I've also recently encountered similar evidence that the housing market in my own pocket of northern California is weakening, and I'm curious to learn if other PeakProsperity.com are seeing the same in their hometowns.

The Global Housing Bubble

Housing, as they accurately say, is local. Conditions differ from region to region, making generalizations of the overall market difficult.

That said, the tsunami of $trillions printed by the world's central banking cartel since 2008 clearly found its way into the housing market.

The world real estate market is HUGE, over $200 trillion. That dwarfs the global debt and equity markets. So it's no surprise the central authorities did all they could to reverse the losses the GFC created for property owners.

As a result, many of the most popular locations to live are now clearly in bubble territory when it comes to home prices:

UBS map of global housing bubbles

The chart above displays the most bubblicious major cities around the world in red. But it's important to note that the merely 'overvalued' markets denoted in yellow, and even some of the green 'fair-valued' ones, are still wildly-unaffordable for the average resident.

For example, in "yellow" San Francisco, where the median home now costs $1.6 million, prices are well-above the excesses seen during the previous housing bubble:

And in 'fair-valued' New York City, the median household must spend 65% of its annual income on housing alone.

Is it any wonder that 70% of millennials who don't yet own a home fear they'll never be able to afford one?

Signs Galore Of Topping Markets

At the end of a speculative bubble, it's the assets that are most overvalued that correct first and correct hardest.

So we would expect that as the highest-priced real estate markets fare from here, the general real estate market will follow.

When we take a closer look at what's currently going on with the red-hot real estate markets noted in the chart above, we indeed see evidence supportive of Rubino's claim that the decade-long Stage One mania may now be ending.

Here's a spate of recent headlines about these cities:

Sure looks like Rubino's predicted Stage Two symptoms of rising supply and stagnating prices.

Local Signs, Too

As mentioned, I live in northern California, quite close to Santa Rosa.

Things here aren't as nuts as they are in San Franscico; but it's still a moderately-affluent region with lots of second homes. It's one of the semi-frothy areas I'd expect to see cooling off in first should there be a downwards turn in macroeconomic conditions.

Located less than an hour north of San Francisco, residential housing prices here have roughly increased 2x over the past six years as the Bay Area has boomed. Supply has been in chronic shortage, exacerbated by the loss of thousands of structures burned during last October's destructive Tubbs fire.

But recently, for the first time in many years, realtors here are beginning to talk of a softening they're seeing in the local housing market.

Median sale prices dropped from May to June, which is counter to previous years. And several towns are seeing year-over-year declines in median price -- something unheard of over the past 7 years.

Meanwhile, the days-on-market ratio for properties is beginning to creep up.

Of the greatest concern to the realtors in my area: bidding wars are no longer happening. Houses are selling either at or below asking prices now. That's a *big* development in a market where houses have routinely sold for $50-100K+ above the listing price.

In a similar vein, I'm hearing evidence of the softening rents down in San Franscico and the East Bay (Oakland/Berkeley). Wolf Richter has done a good job chronicalling the substantial volume of newly-constructed units that have recently hit the market threatening to depress rents, and I've heard from a multi-family unit owner down there how landlords in the area are now finding their rents ~$500 too high for the market to bear.

This is all early and anecdotal data. It's too little at this point to claim definitively that my local housing market has entered Stage Two.

But I'm curious to hear from other PeakProsperity.com readers. What are you observing in your local markets? Are you seeing similar signs of concern?

Please share any insights you have in the Comments section below. Collectively, we may be able to add clarity, in one direction or another, to Rubino's hypothesis.

Prepping For Stage Two

Whatever the timing, Stage Two is an inevitability for today's ridiculously-overpriced real estate markets. It's not a matter of if it (as well as Stage Three) arrives, but when.

Given the data above, I think Rubino is correct in his assessment. Or at least, correct enough that prudent action is warranted today.

This makes even greater sense when considered along with the current trends of rising interest rates and quantitative tightening. Remember, home prices and interest rates have a mathematically inverse relationship: as rates go up, home prices must go down (all else being equal). And as central banks start withdrawing in earnest the excess liquidity that inflated property values to their current nose-bleed heights, expect further downward pressure on prices.

To drive the urgeny home even harder, we haven't even yet talked about the damage an economic recession and/or a painful correction in the financial markets would wreak on the real estate market. With the current expansion cycle the second-longest on record and our all-time-high markets looking increasingly vulnerable, it seems very unlikely we'll avoid at least one of those crises in the near to mid-future.

Here are worthwhile steps we recommend at this point:

  • Consider selling: If you're a homeowner and are not committed to remaining in your property for the next decade+, do some scenario planning. If prices fell 20%, how much of a financial and emotional impact would that have on you? If you have substantial equity gains in your home, Stage Two is the time to protect them. If you have little equity right now, make sure you're fully aware of the repercussions you'll face should you find yourself underwater on your properity. What will your options be should you lose your job in the next recession? Whether to hold, or sell now and rent, is a weighty decision; and the rationale differs for each household -- so we strongly recommend making it with the guidance of your professional financial advisor.
  • Raise cash: The vicious cycle that begins as Stage Two transitions into Stage Three is deflationary. Lower prices beget lower prices. During this period, cash is king. By sitting on it, your purchasing power increases the farther home prices drop. And when the dust settles, you'll be positioned to take advantage of the resulting values in the real estate market. We've written at length about the wisdom of this strategy given current market conditions, as well as how, while waiting for lower prices, you can get 30x the return on your cash savings than your bank is willing to pay you, with lower risk. Our recent report on the topic is a must-read.
  • Educate yourself: Yes, real estate is overpriced in a number of markets. But it has been and will remain one of the best ways available to the non-elites to amass income and tangible wealth. And as mentioned, when the next Stage 3 brings prices down, there will be value to be had -- potentially extreme value. If you aren't already an experienced real estate investor, now is the time to educate yourself; so that you'll be positioned to take informed action when the time to buy arises. Our recent podcast interview on Real Estate Investing 101 is a good place to start.

In Part 2: The Case For Starting To Build A (Small) Short Position, we conduct a similar analysis into the overvaluation and growing vulnerability of the financial markets (which are highly likely to correct much faster, sooner and more violently than the housing market), including the details on a recent short position we've started building.

The tranquil "free ride" the financial and housing markets have had for nearly a decade are ending. The string of easy gains with little effort are over now that the central bank money spigots are turning off at the same time the "greater fools" pocketbooks are tapping out.

For a brief time, prices will waiver, as investors remain in denial and refuse to sell at lower prices. But soon that denial will turn to panic, and prices will plummet.

Make sure you're positioned prudently before then.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

It's a bad day when you've stepped in dog poop.

But it's an even worse day when you're stepping in human poop — especially when underneath the poop is a dirty needle. That's the glory that is San Francisco today.

The city doesn't know what to do. There's more human feces in the street than ever before. This is starting to look like human evolution in reverse. And I want to be a helper in this situation.

RELATED: What the 💩 is going on in San Francisco?

And so, as a helper, I've got an idea for San Francisco. And I'm going to share it with you — free — at absolutely no cost to you. This is a public service.

We made a little sign — "No Human Pooping" — because I think that's clear enough, even for those who may be high on heroin, to understand.

Feel free to download and print as many copies as you'd like, and post them on your property. Or click the buttons below to share on social media.

Something has got to be done about this 💩.

Click here to download your printable copy of the sign.

What the 💩 is going on in San Francisco?

Justin Sullivan/Getty Images

Finally, a beautiful Sunday in your picturesque bayside city. You paid good money to move here. Not cheap. The $150,000 range leaves you just about middle class. In Ohio, that'd buy you a small town. But this is better than Ohio, you tell yourself. Sure, the city isn't as scenic as the postcards, but here you are, at the YMCA fields. You're coaching your kid's soccer team. And today is the co-ed Under-8 soccer final. Really, it's their World Cup. You bought the good oranges and Capri-Sun—the special edition kind with cold-sensitive images on the front. You worked hard for this moment.

RELATED: Illegal Immigrant Hits Jackpot and Is Awarded $190K From San Francisco for Deporting Him

Your job is demanding. Sometimes, you're there 60, 70 hours a week. But somebody needs to coach this soccer team so here you are. And, what. What is that. Your son, he's dribbling past the kid shoving dandelions into the ant hill, and, is he going to score a goal? Yes. Yes, he is, but all of a sudden, right as your son's leg angled back to kick the ball, you hear an animalistic scream behind you. You turn around, and see a man shrieking as he squats over the sidewalk. What is he doing, you ask yourself quickly. Oh, God. You know what he's doing.

Following the death of Mayor Ed Lee, San Francisco Mayor London Breed inherited quite a mess. San Francisco is in shambles. Despite topping nearly every list of the nation's highest cost-of-living prices, San Francisco has been plagued by homelessness, often with unbelievable negative consequences.

I'd like to add that, the segment begins with footage of Mayor Breed walking around San Francisco, and as she passes a group of homeless people, at least one person is openly injecting themselves with a needle.

I shouldn't even have to say this, but helping disadvantaged people is a good thing. The Bible is very clear on the subject.

"Speak up for those who cannot speak for themselves, for the rights of all who are destitute. Speak up and judge fairly; defend the rights of the poor and needy." - Proverbs 31:8-9

San Francisco's approach to dealing with the poor is in fact detrimental to the poor.

"Whoever oppresses the poor shows contempt for their Maker, but whoever is kind to the needy honors God." - Proverbs 14:31

"Looking at his disciples, [Jesus] said: "Blessed are you who are poor, for yours is the kingdom of God. Blessed are you who hunger now, for you will be satisfied. Blessed are you who weep now, for you will laugh." - Luke 6:20-21

San Francisco's approach to dealing with the poor is in fact detrimental to the poor. Walk around the city and you'll see a lot of thousand-dollar tents that function as homes, gifts from good-natured but ultimately misguided people, who function more as enablers than rescuers. The city has set up injection sites, where homeless heroin addicts are provided with clean syringes and allowed to shoot up without punishment. May God bless them. And may we help them in a better way.

Revolutions are started by youth. And the left is desperate for young blood, or, worse, for fresh blood. They're turning on their own.

As reported by the Los Angeles Times, Sen. Dianne Feinstein is more often considered too radical. In a show of force, California Democrats have chosen Feinstein's opponent, Kevin de León, over her.

RELATED: 'I remember thinking liberals were the good guys': Dave Rubin on why he really left the left

Lynne Standard-Nightengale, a member of the Amador County Democratic Central Committee, said she wanted to "send a message."

I just think we need a younger, progressive person there. The Democratic Party in California has moved to the left, and he personifies those values.

Feinstein and de Leon will face each other again in November because California has an open primary system in which the top two finishers face each other, regardless of party.

The left is going hard left. When Dianne Feinstein is not left enough for you—where are the press reports of the extremists taking over? The trend is spreading. A growing number of Trump's base are former Democrats, who voted for Obama.

When Dianne Feinstein is not left enough for you—where are the press reports of the extremists taking over?

So, in response, Democrats are prowling after a new base, a new young base, who's never voted before.

Thankfully, many have predicted that the next generation of voters will be the most conservative generation since pre-WW2. I guess they've watched as their older siblings (or parents) have returned from college with pink hair, atheism, exorbitant debt, and infinite genders, only to decide that personal responsibility, a moral compass, and belief in God are preferable.