US engineering artificial Russian default – analyst

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Washington is trying to prevent Moscow from servicing its sovereign debt

The latest US decision to not extend the general license waiver that allows Russia to make sovereign debt payments is an attempt to force the sanctions-hit nation into an “artificial default,” according to Kyle Shostak, the director & CEO at Navigator Principal Investors.

The move will “effectively turn Russia’s liabilities to the category of default as it is commonly understood and interpreted by international rating agencies,” Shostak said in an interview with TASS.

“This situation can be called nothing but enforcement of an artificial default, as Russia now has enough funds to service its external debt.”

On Tuesday, the US Treasury Department announced that it would not extend the sanctions waiver that allowed Russia to make sovereign debt payments to American investors, in a move officials previously said would cause Moscow to be in a technical default on its debt obligations. The license waiver expired at 04:01am GMT on Wednesday.

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US tries to force Russian default

According to Shostak, Russia could theoretically service the debt in euros, pounds, or Swiss francs, but these payments are difficult to process, due to the position of banks that could block them over fears of being accused of violating sanctions.

“If attempts to provide payments in foreign currencies are unsuccessful, the Russian Ministry of Finance will offer creditors [the opportunity] to open ruble accounts,” he said.

Commenting on the latest news, Russian State Duma Speaker Vyacheslav Volodin said Moscow plans to make foreign debt payments in rubles, adding that the country has all the necessary monetary resources for payments.

“The US and the satellites supporting Washington’s decisions should get used to the ruble,” Volodin said on his Telegram channel on Wednesday, citing Russia’s experience requiring ruble payments for gas shipments as an example of how settlements could work.

Delmarva beaches are more popular than ever. That’s creating new challenges

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This is part of WTOP’s coverage of the Delmarva beaches leading into the summer season. Read more.

More people than ever are visiting the Delmarva beaches during the summer. That increased popularity, combined with post-pandemic realities facing the hospitality industry, have created more challenges for the local economy.

Carol Everhart, with the Rehoboth Beach-Dewey Beach Chamber of Commerce, said she could make a ton of money making signs that read “Now Hiring All Positions.”

“We do have a tremendous staffing shortage,” Everhart said.


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Like many places in the country, she said filling restaurant and retail openings in Rehoboth has become harder to do.

“It’s not just restaurants,” Everhart said. “The shortages in people and the shortages in supplies — it’s tremendous. Every industry we have has a staffing shortage. And every industry we have is saying, if it’s not a shortage, it’s a limited supply.”

In Lewes, Delaware, along the calm waters of Delaware Bay, the beaches will be without lifeguards for the first time in years.

“We had a total of four applicants,” said City Manager Ann Marie Townshend. “We usually have 10 lifeguards. Two of the applicants that we had have never guarded before, so this would be their first time.”

Townshend said the applicant shortage is still happening, even after the city hiked the hourly pay rate to over $16 per hour.

“It’s not something we take lightly, and it’s not something we’re at all happy about,” she said. “We did not think it was appropriate to try to guard the beaches with an insufficient number and insufficiently experienced lifeguards and give the people a sense that the beaches is more professionally guarded than it is.”

What does that mean for people swimming in Delaware Bay?

“Families need to keep eyes on their kids,” she said. “Look for people. It’s not just kids who can sometimes have issues.”

Businesses on the move

NICOLA PIZZA
Nicola Pizza in Rehoboth Beach, DE. (Photo WTOP / Luke Lukert)

It’s not just workers who are leaving businesses at the beach. Some businesses themselves are moving away from the downtown areas.

The Frogg Pond, a mainstay in downtown Rehoboth for decades, has moved to a new location on Coastal Highway between Rehoboth and Lewes.

And this will be the last summer you’ll find Nicola Pizza operating in downtown Rehoboth. It’s moving toward Lewes, near the Five Points intersection, this fall.

“Some of the businesses have stated that parking is part of their problem,” said Everhart. “If I’m a customer and I can pull into a business or restaurant somewhere on Route 1, and not have to worry about parking, nor do I have to pay for parking, that’s very enticing to the customer.”

Nick Caggiano, whose parents opened Nicola Pizza in 1971, said he’s moving primarily because he owned the land in Lewes, and running back and forth between properties was too difficult during the summer.

Caggiano said that parking and the traffic aren’t the primary reasons for the move (he called them “the icing on the cake”), but he did acknowledge they can be a hindrance to his local customers and seasonal employees, who have been priced out of the area. He said the downtown property where his restaurants have been has already been sold.

Everhart said the business lobby has been pushing the city to open a big parking garage downtown to address these concerns. But city leaders and residents who own homes there are strongly against the idea. In fact, they see the relocation of businesses away from the downtown as a good thing.

“It’s really not because they were hurting or unsuccessful,” said Rehoboth Beach Mayor Stan Mills. “We believe it was because of their success. They were so successful, they wanted more parking. And in Rehoboth Beach, we’re limited on parking. Parking is a premium.

“It’s my belief they just wanted to go out of town, where parking is essentially more plentiful as well as free,” said Mills.

The housing problems Caggiano cited in Rehoboth are also being experienced in Ocean City.

“Finding seasonal housing is difficult, more difficult today than ever before,” said Ocean City Mayor Rick Meehan. “During the pandemic … a lot of the property owners repurposed the units that had previously been for seasonal housing and made them rental properties. That took an awful lot of that type of housing out of the inventory.”

Meehan said some businesses have started providing housing to workers, but that it’s barely made a dent in the need.

Meanwhile, longer-term solutions are being sought. In the spring, Ocean City and Worcester County asked the State of Maryland to approve special, low-interest financing to help develop new housing for thousands of seasonal workers.

Meehan said town leaders have been working with Holtz Companies, which would build and operate the “dorm concept” housing project in West Ocean City.

“It’s probably a couple of years away,” he added.

In one proposed plan, Holtz would build and operate the facilities, while Ocean City would provide transportation back and forth.

“It would be a two or three-building complex and house anywhere from a thousand to 1,500 seasonal workers,” said Meehan.

Meehan estimated 3,000 to 3,500 beds are needed for seasonal workers in the area.

In addition, the number of foreign workers who used to come work in Ocean City every summer is down by around 3,000, compared to pre-pandemic levels. This means businesses are having a hard time hiring as well.

“That’s going to continue to put a strain on our local businesses,” Meehan admitted. But he also said many businesses are learning how to adjust.

“So we’re still going to have some help shortages, but I don’t think it’s going to be as noticeable as it might have been a year or so ago,” he said.

Prince George’s Co. teachers seeking raises, better work-life balance

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Teachers in Prince George’s County, Maryland, are asking for pay raises and a lightened workload, which they say has been overburdened by unnecessary paperwork and documentation.

Prince George’s County Public Schools and its teachers union — which represents about 10,000 educators — are in the midst of contract negotiations to replace its current contract, which expires June 30.



Both sides have agreed to negotiate a three-year contract, but they appear to be far apart over the level of pay raises.

“We are trying to increase teacher pay so that we have competitive salaries that are more in line with what it will take to fill all of these staffing shortages…we came back with 8% in the first year, 7% in the following two years, which is a little bit closer to where inflation is right now, and they came back with 4%; so we’re still quite a ways apart,” said Donna Christy, president of the Prince George’s County Educators’ Association.

“Right now, because of the pandemic, there’s staffing shortages everywhere, but this a problem that preceded the pandemic,” Christy said. “These staffing shortages have existed for a long time…there are over 800 vacancies just within our unit, 770 of those being classroom teachers.”The PGCEA also said that the county’s school system is burdened by chronic staffing shortages.

Another key bargaining issue for the union is the daily time allotted to teachers for them to plan lessons, which some say is often eaten up by growing administrative duties.

“The members of PGCEA are seeking manageable workloads that allow teachers to focus on our students and their successes while maintaining a healthy work-life balance,” Christy said.

How Biden’s efforts to protect trans students are primed to stumble

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Three words in the Constitution are crushing Miguel Cardona’s efforts to protect transgender students in the classroom: freedom of speech.

The Education secretary believes students have the right to be called “he,” “she,” “they” and other pronouns in school that match their gender identity. The courts see it differently.

Shawnee State University in Ohio paid out $400,000 in April to Nick Meriwether, a professor who sued the institution for violating his rights and levying an unfair punishment when he refused to refer to a transgender student by her pronouns. Similar cases have occurred at public schools across the K-12 level, including in Virginia and Kansas, with educators suing on the grounds that using pronouns they don’t agree with violates their First Amendment rights to free speech and the exercise of their religion.

Cardona’s new proposed rule for Title IX, the federal education law that prohibits sex-based discrimination, is expected to go public in June and include protections based on sexual orientation and gender identity for the first time. Enforcing the policy may prove difficult for Title IX administrators. And the pending rule will tee up more legal battles over competing philosophies on gender ideology, forcing institutions to tiptoe between potentially costly settlements in courts and protecting transgender students on campus.

“It’s very hard to say to a student: ‘I know that you are being othered. I know that you are being treated as less than. I know that you are not being honored in your identity,’” said Brett Sokolow, president of the Association of Title IX Administrators, “’and we as an institution can’t do anything about it.’”

Political tension has escalated in the past two years over transgender students’ access to bathrooms and locker rooms that match their gender identity and which sports teams they play on. It’s unclear how the courts will ultimately resolve those cases, but pronouns appear to face a more difficult legal landscape.

Misgendering and refusing to use the correct pronouns are the most common Title IX complaints filed by transgender students, administrators say, and using the right gender pronouns is vital to inclusivity, according to The Trevor Project, a nonprofit that focuses on LGBTQ mental health. While a student’s complaint is covered by the Title IX office, getting a faculty member to comply may be a challenge after Shawnee State’s court case and recent settlement.

Judge Amul Thapar, a Donald Trump appointee to the 6th Circuit Court of Appeals, in what is considered the first major ruling on the use of pronouns in the classroom, wrote Shawnee State University “punished a professor for his speech on a hotly contested issue. And it did so despite the constitutional protections afforded by the First Amendment.”

Lawsuits over pronouns aren’t a regular part of the Title IX process. Educators say they aren’t looking to intentionally harm their students by refusing to use their pronouns and, most of the time, Title IX investigators say they are able to reach a solution that’s agreeable to both sides.

“But 20 percent of [educators] or so are dug in and they’re doing this as a political statement,” Sokolow said. “They want the publicity and they want the school to try to punish them because then they can make this a cause and they can pose this as the conflict of woke ideology against the maintenance of traditional values.”

In the courts

Alliance Defending Freedom, a conservative Christian legal group, is one of the organizations at the center of pronoun challenges in court — and it says they’ve kept their arguments simple.

“The Supreme Court has been very clear throughout its opinions on speech,” said Ryan Bangert, ADF’s senior counsel and vice president of legal strategy. “Freedom of speech always includes the right not to speak messages that cut against the speaker’s core belief. And that’s precisely what these policies do.”

The same strategy is also being applied to a case in Kansas at the K-12 level, Bangert said. Kansas middle school teacher Pamela Ricard sued USD 475 Geary County School Board in March over a policy that required her to refer to students by their preferred first name and pronouns that match their gender identity. But the school’s policy prohibited her from using a student’s pronouns and names when speaking to their parents.

While the district court this month found that Ricard was “unlikely to experience irreparable harm” from the school’s enforcement of its policy, it granted a preliminary injunction saying Ricard’s “free exercise claim” has merit.

Ricard “has testified that she is a Christian and believes the Bible prohibits dishonesty and lying,” the court wrote. “She believes it is a form of dishonesty to converse with parents of a child using one name and set of pronouns when the child is using and being referred to at school by a different name and pronouns.”

The opinions largely apply to the individual plaintiffs, Bangert said, though ADF believes that if the Title IX rule is finalized with protections for transgender students and includes pronouns, the “principles apply generally and others who find themselves in the same situation can surely take advantage of those opinions.”

Other cases are also emerging, including one in Virginia where a high school teacher said he was fired for refusing to use a student’s pronoun. Tension is also escalating in Wisconsin after a school district filed a Title IX complaint against three eighth-grade boys over using incorrect pronouns when addressing another student.

Bangert, however, said that the educators ADF has represented in court have “sought to find the middle ground,” which school districts have rejected. This includes using last names or sometimes a student’s preferred name, but not their pronouns or titles.

Despite the First Amendment challenges, advocates for transgender and nonbinary students say they’re confident the Biden administration will continue to push to protect these students.

“Previously, we didn’t have a Department of Education that was willing to step up and really push back against some of these challenges that existed,” said Alexis Rangel, policy counsel at the National Center for Transgender Equality, a nonprofit advocacy group. “But our voices are being listened to in ways that they never have been before, including by the most vocally supportive administration for trans people in the history of our country.”

Enforcement challenges

Education Department officials last June announced transgender students are covered under Title IX, a return to Obama-era discrimination protections for the group after they were revoked under the Trump administration.

The Biden administration’s interpretation of the law, which bans discriminating against someone based on sexual orientation and gender identity, is based on the landmark 2020 Supreme Court ruling in Bostock v. Clayton County. It also makes good on an executive order issued by President Joe Biden that said the court case about transgender rights in the workplace applies to Title IX.

“It’s essential for schools to be welcoming environments,” Cardona said in March, a statement the Education Department pointed to when asked about the pronoun lawsuits. “We know transgender students are among the most vulnerable not because of who they are, but because of the hostility directed at them.”

Despite the Biden administration’s best efforts to codify a rule to protect transgender students, legal challenges may hinder a school’s ability to enforce the pronoun part.

In higher education, colleges may be less likely to take on pronoun complaints against professors through a formal Title IX process due to fear of costly settlements — though, they will be required to investigate an issue. Academic freedom is also an issue, said Alyssa-Rae McGinn, vice president of investigations at Dan Schorr, LLC, a firm that specializes in Title IX cases.

“In any situation where something like academic freedom, freedom of speech or freedom of expression comes up in response to a claim of harassment, the decisionmaker essentially has to decide, ‘Was it a reasonable exercise of those rights?’” McGinn said. “’Did it infringe on this other person’s right to not be discriminated against on the basis of their gender?’”

The number of Title IX complaints from LGBTQ students is far lower in K-12 than higher education, and K-12 Title IX complaints usually stem from reports of sexual misconduct, McGinn said. “A lot of schools don’t really consider the pronouns issue and preferred names … as rising to the level of a Title IX issue, unless it meets that severe pervasive and objectively offensive standard.”

Educators refusing to use pronouns, McGinn said, is “at the most basic level, the kind of microaggressive behavior that chips away at a person, disaffirms a person and really continually reinforces that you are not your gender.”

But using correct pronouns could also be the difference between life and death for transgender and nonbinary youth, who are more vulnerable than their peers to suicidal ideations, according to The Trevor Project’s annual report on LGBTQ youth mental health. More than half of transgender youth contemplated suicide in the past year — and suicide risk is higher for LGBTQ kids ages 13 to 17.

Many schools are trying to balance these mental health risks with student privacy laws, their federal obligation to investigate a claim and cases where a child might not be out to their families.

“The school has to decide: ‘Are we in a jurisdiction where what we know, parents have a right to know?’” said Sokolow, the president of ATIXA. “‘Are we supposed to shield these children from their intolerant parents and help them in this transition process where they can at least live their true selves in school?”

“It’s a nightmare,” he said. “Schools are caught between the kids and the parents.”