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Trump Declares Trade War On India, Imposes New Tariffs

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Originally appeared at ZeroHedge

President Trump has a victory present for newly re-elected Prime Minister Narendra Modi – and it’s the economic equivalent of a flaming bag of feces left on India’s doorstep.

In his latest act of protectionist aggression in what has already been an action-packed week, Trump late Friday announced that his administration was terminating India’s designation as a developing nation under a trade program that allowed Indian exporters to ship 2,000 products into the US duty free. The decision to revoke India’s preferential trade status, which mirrors Trump’s decision to revoke Turkey’s status under the program a few weeks back, comes one day after Modi was sworn in for a second term.

Under the decades-old program – known as the Generalized System of Preferences – Indian companies were able to avoid some $5.7 billion in duties back in 2017.

The new standards will take effect June 5.

“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” Trump said in a proclamation on Friday evening. “Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”

The decision isn’t unexpected: The White House warned back in March that it could end India’s preferential treatment if India didn’t agree to certain reforms, but it decided to hold off so as to not hurt Modi politically during the run up to the election. According to Bloomberg, Trade Representative Robert Lighthizer has become increasingly frustrated with India’s trade barriers and practices. The trade rep has taken issue with the country’s self-designation as a developing nation at the World Trade Organization.

The White House’s Friday proclamation also imposes tariffs on solar cells and washing machines from India and Turkey. Those tariffs had been imposed by Trump in 2018, but India and Turkey had been exempt because of their status as developing nations under the GSP.

One critic of Trump’s decision warned that ending the designation for India would cost American businesses hundreds of millions of dollars a year.

Dan Anthony, executive director of the Coalition for GSP, a trade group, said that the decision “will cost American businesses over $300 million in additional tariffs every year.”

“There are no winners from today’s decision,” Anthony said in a statement.

“American importers will pay more, while some American exporters will continue to face current market access barriers in India and others, including farmers, are very likely to be subject to new retaliatory tariffs.”

Read the White House order below:

Subject: Proclamation to Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

1. In Executive Order 11888 of November 24, 1975, the President designated India as a beneficiary developing country for purposes of the Generalized System of Preferences (GSP) (19 U.S.C. 2461 et seq.).

2. Pursuant to section 502(d)(1) of the Trade Act of 1974, as amended (the “1974 Act”) (19 U.S.C. 2462(d)(1)), the President may withdraw, suspend, or limit the application of the duty-free treatment accorded under the GSP with respect to any beneficiary developing country. In taking any action under section 502(d)(1) of the 1974 Act, the President shall consider the factors set forth in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 2461 and 2462(c)).

3. Section 502(c)(4) of the 1974 Act (19 U.S.C. 2462(c)(4)) provides that, in determining whether to designate any country as a beneficiary developing country, the President shall take into account, among other factors, the extent to which such country has assured the United States that it will provide equitable and reasonable access to the markets and basic commodity resources of such country and the extent to which such country has assured the United States that it will refrain from engaging in unreasonable export practices.

4. Consistent with section 502(d)(1) of the 1974 Act, and having considered the factors set forth in sections 501 and 502(c), I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.

5. Section 502(f)(2) of the 1974 Act (19 U.S.C. 2462(f)(2)) requires the President to notify the Congress and the affected beneficiary developing country, at least 60 days before termination, of the President’s intention to terminate the affected country’s designation as a beneficiary developing country, together with the considerations entering into such decision. I notified the Congress and India on March 4, 2019, of my intent to terminate India’s designation, together with the considerations entering into my decision.

6. Pursuant to section 203 of the 1974 Act (19 U.S.C. 2253), and after receiving a report from the International Trade Commission prepared under section 202 of the 1974 Act (19 U.S.C. 2252), the President may implement a measure in the form of a safeguard to address increased imports of articles that are a substantial cause of serious injury to a domestic industry producing like or directly competitive products. When acting pursuant to section 203 of the 1974 Act, the President shall take action that he determines will facilitate efforts of the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs.

7. In Proclamation 9693 of January 23, 2018, pursuant to section 203 of the 1974 Act, I implemented a safeguard measure on imports of certain crystalline silicon photovoltaic (CSPV) cells, whether or not partially or fully assembled into other products (including, but not limited to, modules, laminates, panels, and building-integrated materials) (“CSPV products”). In Proclamation 9694 of January 23, 2018, pursuant to section 203 of the 1974 Act, I implemented a safeguard measure on imports of large residential washers.

8. The safeguard measures implemented by Proclamations 9693 and 9694 exempt imports of covered products from developing countries that are Members of the World Trade Organization (WTO), including India, if such a country’s individual share of total imports of the product does not exceed 3 percent and if imports of all such countries with less than 3 percent import share do not collectively account for more than 9 percent of total imports of the product.

9. Consistent with my determination that it is appropriate to terminate the designation of India as a beneficiary developing country under the GSP, effective June 5, 2019, I have determined to remove it from the list of developing country WTO Members exempt from application of the safeguard measures on CSPV products and large residential washers. To reflect India’s removal from the list, I have determined that it is appropriate to revise subdivision (b)(2) of U.S. note 17 and subdivision (b) of U.S. note 18 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTS) to delete the references to India.

10. Section 604 of the 1974 Act (19 U.S.C. 2483) authorizes the President to embody in the HTS the substance of the relevant provisions of the 1974 Act, and of other Acts affecting import treatment, and actions thereunder, including removal, modification, continuance, or imposition of any rate of duty or other import restriction.

11. In Proclamation 9887 of May 16, 2019, I terminated the designation of Turkey as a beneficiary developing country for purposes of the GSP and removed the exemption for Turkey from application of the safeguard measures on CSPV products and large residential washers. To reflect this termination and removal, I made certain modifications to the HTS, effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 17, 2019.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States of America, including title V and sections 203 and 604 of the 1974 Act, do hereby proclaim that:

(1) The designation of India as a beneficiary developing country is terminated, effective June 5, 2019.

(2) To reflect this termination, general notes 4(a) and 4(d) and pertinent subheadings of the HTS are modified as set forth in Annex A to this proclamation.

(3) Any provisions of previous proclamations and Executive Orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

(4) The exemption for India from application of the safeguard measures on CSPV products and large residential washers is removed, effective June 5, 2019.

(5) To reflect this revision, subdivision (b)(2) of U.S. note 17 and subdivision (b) of U.S. note 18 to subchapter III of chapter 99 of the HTS are each modified as set forth in Annex B to this proclamation.

(6) Any merchandise from India or Turkey subject to the safeguard measures implemented by Proclamation 9693 and Proclamation 9694 that is admitted into a United States foreign trade zone on or after 12:01 a.m. eastern daylight time on June 5, 2019, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to the safeguard measures implemented by Proclamation 9693 and Proclamation 9694.

IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of May, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.

DONALD J. TRUMP

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  • John

    lol …………. creating friends everywhere!!! All the more reason for them to throw in with the SCO and BRI. I guess they will increase their purchases of Iranian oil and start to restrict military cooperation with the US soon. India goes under the bus. What’s next for an encore?

    • FlorianGeyer

      ” What’s next for an encore? ”

      The bus driver is declared to be clinically insane perhaps and thrown off the bus :)

      • John

        lmao!!

      • AM Hants

        that will come in London, no doubt.

        • FlorianGeyer

          When I look at the fencing , massive and overblown security, together with the government of Farage, who is a personal friend of Trump etc, it appears that the UK deep state has decided to wrap up Trump in a cocoon environment that will insulate him from any communication with the populace that the UK government+ others are desperate to prevent.

          One reason I suspect is the threat that Trump would rightfully and publicly expose, with irrefutable evidence, that the British Government was the incubator of the whole anti Trump and anti Russian hysteria within and without the USA.

          • AM Hants

            I have just read two articles over on the Daily Mail, one by Jonathan Aitken, the Conservative Cabinet Minister, who ended up going down for perjury, owing to his friendship with arms dealers and corruption and the other with regards Alistair Campbell, courtesy of Peter Hutchens or is it Peter Hitchins, always get the surname muddled. Well, it led me going on a ramble, as memories of politics, in 90s UK, came flooding back. The comment is copied below.

            Reminds me of the times we are in now. How a movement gave us Tony or was it Miranda Blair? Is a similar movement gaining power, at the moment? So funny, if the same crowd are taken down, using the same tricks, that they excelled at, back in the 90s? Common Purpose Crowd, of little nobodies, with so much power. Would so love to see their days come to an end and just go back to when life was simple and you could have a laugh.

            …………………..

            Remember, Maggie Thatcher, resigned in 1990 and how it was owing to the actions of her cabinet, who turned on her. Whether you like her or not. She was replaced by John Major, the Grey Man, so loyal to Bush, he even achieved a position with Cheney and Bush in the Carlisle Group and loyal to the EU. He lost the election in 1995, when Tony Blair became our Prime Minister, over in the UK. Loyal to Common Purpose, and with Blair came Mandelson and Campbell, again Common Purpose Members, like many politicians/Prime Ministers.

            …………………

            Today I came across two articles, over on the Daily Mail, which reminded me of these times. Both relevant then as they are today.

            The first, Alistair Campbell, one of Tony Blair’s henchmen. Remember Dr David Kelly and how Campbell reacted? Not only with regards his death, but, also how he did not agree with Sadam having weapons of mass destruction. At the time Anthony Blair or is it Miranda Blair, was telling Parliament the opposite.

            …………………..

            Over to Peter Hitchins:

            PETER HITCHENS: I’m glad Alastair Campbell got the chop – he’s much more dangerous than Corbyn… https://www.dailymail.co.uk

            …………………

            Then you have this article by Jonathan Aitken, again a 90s politician, involved in shady deals with arms dealers, who ended up telling Porkies in Court and the Guardian sued him for perjury. The Guardian were successful, and Jonathan Aitken, a member of the Privvy Council was sent down, in 1999. Reverend Aitkens, well prison chaplain, has an interesting history, together with his family connections. He is the great-nephew of newspaper magnate and war-time minister Max Aitken, 1st Baron Beaverbrook (Lord Beaverbrook). His sister is the actress Maria Aitken and his nephew is the actor Jack Davenport. He is godfather to James Abbott, the son of Labour left-winger Diane Abbott. Aitken was born in Dublin, Ireland. His grandfather Lord Rugby was in 1939 the first British representative to the newly independent Irish state. Not forgetting his links to ‘TV-am’, the creation of morning media, run on TV. In business Aitken Hume, the company became the largest stakeholder in TV-am.

            …………………………..

            Sorry as I ramble, but, Blair was so fortunate, prior to coming to power. The late John Smith, who passed away from a heart attack. Unfortunate timing, but, not for Blair.

            Then you had all the Conservative scandals, Aitken, brown envelopes, and others taken out, owing to political corruption and being found out.

            So similar to events today.

            When did the Aitken story break?

            When were the brown envelopes starting to gain attention?

            Neil Hamilton, who resigned in 1997.

            The same year Princess Diana died, and Blair and Campbell were instrumental in the Queen’s year of ‘annus horribilis’.

            There were other scandals, with Blair’s henchmen Campbell and Mendelson, controlling the show and media exploitation.

            Campbell, who previously used to be the editor of the Daily Mirror. Wasn’t that during the time Maxwell had raided the ‘Mirror Pension Scheme’?

            Didn’t Campbell punch the Guardian Jounalist, who made a joke abount ‘Bouncing Bob’, when Maxwell, who was loyal to Mossad, died following an accident on his yacht?

            Gosh, seems so long ago, but, so similar to events of today.

            …………………….

            I’d rather be back in jail with Noel the Razor than sit with the second-raters in today’s House of Commons, writes JONATHAN AITKEN… https://www.dailymail.co.uk

          • FlorianGeyer

            Thank you for your fascinating chronology of Faux UK Democracy in action within our lifetime. Accurate history has always been a silver bullet for political charlatans.

            It appears that the EU,US,UK deep states are at their most dangerous stage as they struggle to stay afloat in the barrel of filth that sustains their survival.

            I am always impressed by your erudite and HIGHLY organised delivery of historical truths, and your opinions.

          • AM Hants

            Thank you.

          • FlorianGeyer

            Banal events seems to be the discussion at most dinner parties these days.
            It appears that Fiddling Whilst Rome Burns is the order of the day.
            Did Liverpool win by the way :)

          • AM Hants

            Yep, Liverpool won. I got a phone call from my son, which i missed, inviting me to go with him and celebrate with the Liverpudlians. By the time I returned the call, he was already there. Quite sad to have missed out haha.

            Must admit, I did laugh, when the Russian swimwear model invaded the pitch. Gotta love Russia, getting the headlines haha. Do believe she was the best part of the match, if you were a hormonal male haha.

            https://uploads.disquscdn.com/images/619b241e396225c01b74f9fff1edfb076e12f8ceff1fdd7654a2cc08172b48c2.jpg

          • FlorianGeyer

            I bet Putin put her up to it.
            Russian meddling in OUR football is a foul too far :)

            She certainly has a lot of balls.

            Or is it forbidden to say that these days ?

          • AM Hants

            Didn’t notice her balls, but, everything else was clear to see.

            If she did have balls, it would be perfectly acceptable, in order to keep the LGBT and 62 varieties, crowd happy.

          • FlorianGeyer

            A closer inspection is needed I think.
            Where can I volunteer :)

          • AM Hants

            Do believe you might need My Name Is Al, to chaperone you.

          • FlorianGeyer

            Al would be an excellent choice. Lets not forget our Apache friend as well.

          • AM Hants

            Haha, enjoy.

          • FlorianGeyer

            I edited my grammar a wee bit. I was distracted :)

          • AM Hants

            Haha, can understand why. My technical grammar is appalling, especially when in chat mode on forums.

          • FlorianGeyer

            Yes, I find that I type with more errors than when I write with a pen.
            I also find that my spelling has suffered because of poor spelling in newspapers and on line. That’s my excuse anyway.

            Even a TV house search programme today used the term ‘ Makers Mark ‘ for an inscription on an ancient oak beam. In my opinion the term ‘ Craftsman’s or Carpenters signature or mark’ would have been more appropriate :)

            Even listening to the Weather forecast on TV is a journey to a junior school :)

          • AM Hants

            Know exactly what you mean, with regards spelling deterioration. I was better at spelling in primary school, then now, thanks to ‘spell check’, ‘us computer language’ and basically laziness, on my part.

            So many skills we have lost, in such a short period of time.

          • FlorianGeyer

            Its all very sad really, ‘innit’.

          • AM Hants

            LOL. Yeah mate.

          • AM Hants

            Meet Miranda Blair.

            https://uploads.disquscdn.com/images/2ec93efec1a4959f75fe4f88f27e2a6ca31c42a34cfd23bc71848970e066d08a.jpg

            do you remember her good mate Mandelson? Together with Campbell.

            Did have an image of Mandelson in his robes, complete with stockings and suspenders. Lost it, but, not an image you wish to see, owing to not being able to erase the experience.

            https://uploads.disquscdn.com/images/6e8421fe23141cc5e2a270760db224dedbc909fa1b9e98587e58a516db0d37b3.jpg

            https://uploads.disquscdn.com/images/a0fa0a9010a4a5d1afbc02f4f93ea43d97a3f9637b5e769bbf8239d3a82c173b.jpg

  • Michael Dwyer

    I’m american this is completely out of control its already hurting american farmers its not good for anybody except trumps ego

  • occupybacon

    What a title…

    • PZIVJ

      When I first read it I was thinking.
      YELLOW CLOWN DECLARES TRADE WAR ON WORLD
      Look at Modi’s expression, like “What the hell”.

      • occupybacon

        You see, I’m already used with this type of titles from CNN, MSNBC and BBC tabloids, I don’t even click those articles anymore.

  • Rob

    India should read history a bit that who has broken India in 1947. It was Jews of America and GB who has broken India. India still cannot differentiate between friends and foes. The regional countries want friendship with India and India run far away from them. India cannot run far away from those countries at their border.

    • You can call me Al

      Bollocks, Indian couldn’t even wipe their arses, before the Brits showed them how. Now 5% of all Indians use toilets and wipe their arses.

      • PZIVJ

        Surely more than 5%, though I have never visited there.
        I am sensing some hostility towards India from you.
        The British empire used this country for their own benefit in centuries past.

        • You can call me Al

          No, honestly I love India, when of course I am in the hotel with a bloody sit down toilet.

          I actually do love the place, nice people and lots to see and laugh at.

          No hostility at all in India, now if you want to talk about the millions of Indians in the UK; that is another story.

          Regards the empire, have we lost it yet, or has it just gone underground ?.

      • Rob

        LOL

  • Rob

    Avoid America and their US dollar because both are haram. Don’t visit America and don’t invest in America because the future of America is uncertain. Avoid both for your safety and your money.

    • Smith Ricky

      Invest in Bitcoin.

      • Rob

        I don’t trust bitcoin softmoney either. I trust only on hardmoney real currency.

        • Smith Ricky

          So you rather fiat currency, which is backed by thin air and which keeps inflating? 😅

  • Sorna Karbaschi

    Trump, Turning America, in to Great FOBAR!

    • You can call me Al

      I had to look that funny word up..”F.O.B.A.R. is an acronym for “fucked over beyond all reason.” It is similar in meaning to fubar, but proclaims a severe injustice.”

      What severe injustice ?, they deserve everything they get.

  • AM Hants

    Is there anybody he is trading with?

    Guess he does not realise these trade wars and sanctions, just isolate the US.

    Have they got the skills set and motivation, to become fully self dependent?

    • FlorianGeyer

      Only in shoot em up fantasy propaganda videogames really.

      Fantasy American Heroes Inc.

  • AM Hants

    Believe it or not, this article does go with the above.

    How are the sanctions and trade wars affecting the US Property Market (high end) and why?

    LA Developers Are Getting Desperate As Megamansion Glut Worsens…

    ‘… From Greenwich to the Hamptons to Billionaires’ Row, sellers of luxury homes have struggled to find buyers amid a glut of oversupply and the disappearance of the marginal bid from wealthy Chinese buyers, who were once willing to pay a premium for real-estate in places like NYC…’ https://www.zerohedge.com/news/2019-05-31/la-developers-are-getting-desperate-megamansion-glut-worsens

    The irony. Didn’t Trump run a Property Empire?

  • Arnte

    Cowboys and Indians…. That’s the only way to resurrect american economy: to brutally force other nations to buy their garbage. Make America Great Again – by terrorizing the rest of the world.

  • Tommy Jensen

    We in India will do everything to please you America. We don’t buy oil from Iran no more. We did everything you America said to us to sanction Iran and Syria and Venezuela, everything we did as you telling us.

    You remember India is also English like you. We have English in India history and India hearts as you have. We also have English Queen as you have. We also helped you with Monsanto.

    We helped you with Army and China. You must treat India better. We are closest friends with you and we are with you America.

    • James

      Gotta make that orientation to South America some how….

    • PZIVJ

      Just shut up India, and accept the new tariffs!
      This is US diplomacy in the the new modern age.
      Lick my boot heels or else.

  • Cook

    I knew this was going to happen because the us love Pakistan more and doesn’t like how India is getting close to america’s rivals of Russia and China.

  • Joe

    Don’t put your money there
    .. one day you see your money got sanctioned

  • paul ( original )

    I can see Trump’s point. Giving special status to countries because they are deemed to be ‘developing’ can not be a permanent arrangement. It is actually a long standing tactic to erect trade barriers in order to protect home industries. This idea has fallen out of use during the globalist ascendancy. May be Trump is beginning the long needed push back. If only he would build his wall.

  • Vitex

    Running out of economies to burn. Sooner or later the USA will feel the fall-out at home of this criminal behaviour

  • jm74

    Trump is preparing for war hence all of these actions to fill US treasury and NATO surrounding Russia, Iran and ME. Looks like all of that arse licking from Modi didn’t pay off.

  • Oh dear ..

    Things do heat up while we are not looking ..

  • marcusbond

    I honestly can’t see the problem with the USA reviewing some tariff legislation on another country originally implemented in 1975.

    The other countries around the world, and the IMF, all seem to agree that they want to move away from using national currencies (like the US dollar) as global reserve currencies. Instead, they are developing the use of alternative mechanisms such as special drawing rights (SDR’s).

    I think it’s possible to see that recent changes to USA trading policies, are partially bound up with this issue of moving away from the US dollar as the global reserve currency. The IMF has stated it doesn’t want a sudden cliff edge change, but a slower gradual adjustment away from the US dollar.

    If the US dollar is to lose its status at the global reserve currency, I can see why the USA will need to review and make adjustments its trading policies, to start moving these policies back into some sort of balance with its foreign trading partners, so that it is not disadvantaged.

    If Trump encourages lots of manufacturing businesses back to the USA due to high tariffs, and the US dollar is no longer going to be the global reserve currency. Then at some point in the future when they have finished adjusting their trading policies to account for the new situation, I guess the USA will have the option to devalue the US dollar – if it really wanted to.

    • Ivan Freely

      I can’t see manufacturing jobs returning to the US. Already those manufacturing jobs lost to China have now left China to other nations such as Vietnam. South Korea is trying to mend fences with North Korea not because of reunification but access to cheap labor.

      • marcusbond

        Yeah, I have the same thoughts… I don’t have a crystal ball, so I can’t say where these changes are heading, or whether they will work. I’m just aware that there is general agreement to stop using national currencies as global reserve currencies (including the US Dollar), and penalise over/under trading nations with devaluations to rebalance world trade. What the USA is doing with its trading reviews seem to be in anticipation of this changes, and it may be the right thing for them in these circumstances..

        Another problem is resources for a nations manufacturing industries. The EU has so little natural raw material resources, it’s going for a recycling policy, to scavenge and reuse materials that will reduce its reliance on external resource sources.

        The USA is in a very different situation. It also has a massive military machine to enable it to secure raw material resources much further afield.

  • Lets not trade with US.

  • Brother Thomas

    “Art of the Deal” at work. So far complete failure with China, DPRK, and Iran. Did work with Canada and Mexico. Lesson is if you are vulnerable enough to be bullied, you will be.

  • Bob

    It’s all about the Indian energy sector continuing to import Iranian oil – Washington and its merry band of Neo-Con advisers and AIPAC lobbyists, who seek to determine all of US foreign policy, desperately want to decimate Iran’s economy.

  • frankly

    When most of the world leaders realize the CIA can no longer protect them from their domestic enemies and there is no where to escape to, we may witness a mass abandoning of the US ship. It’s like being stationed on an aircraft carrier, you want to be good at abandoning ship.

  • Peter Moy

    There are three types of countries on this planet: 1) those who are lapdogs, vassals and partners in mass killings and destruction of the USA, 2) countries that are so insignificant that Uncle Shmuel ignores and just let’s exist and 3) those countries that do not want be a slave, colony or be stepped on – usually a country that is a perceived, imagined or fabricated enemy of Uncle Shmuel. A country like India with a giant population (~ 1.35 billion people), should never permit itself to be harmed, threatened or surrender its interests to a pack of brain-damaged, mentally deranged, evil, murderous, degenerate freaks who direct US foreign policy. It is high time that Indian foreign policy stands up against this bullying by completely reckless, extremely foolish and ignorant morons in Washington, DC.

  • Dorji Namgyal

    The political world must start dealing with Trump separately from the real political world. It seems American politics takes the world on when Trump has run out of personal ammunition. A smart enough tactic when the political chips are down, and becoming all the more necessary now that the North American political Cabal is making political developments at home more insular.

  • Cook

    I’m sick of you government assholes screwing us over with you shitty policies and having to pay ridiculous taxes for your fruitless endless wars.