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The global economy’s growing risks: stagflation, refugees and lockdowns

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This was speculated to be the yr the world financial system recovered from the shock of Covid-19. By the tip of 2022, official forecasters anticipated the US, European and Chinese language economies nearly to have returned to the paths they had been cruising alongside earlier than the pandemic. Different rising economies had been lagging behind, however additionally they anticipated to be rising at fast charges and slowly getting again to regular.

Inflation was an issue, for positive, the IMF stated in its October evaluation, but it surely stated that fast worth progress “ought to steadily lower as supply-demand imbalances wane in 2022 and financial coverage in main economies reply”.

The fund was not naive. It famous geopolitical and pandemic dangers in its evaluation, however hoped they’d be dodged. Three months into 2022, these warnings have grow to be actuality and the worldwide financial system is now dealing with the chance of a pointy deterioration.

Russia’s invasion of Ukraine is imposing a extreme stagflationary shock, elevating costs as power provide is threatened and squeezing family and company incomes as important commodities grow to be costlier.

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With the biggest conflict on European soil for nearly 80 years, the specter of escalation undermines confidence to spend and Europe should take care of a fair bigger inflow of refugees than in 2015. The return of coronavirus to China as soon as once more threatens international provide chains, amplifying upward pressures on costs and downward strain on output.

These developments all undermine international financial prospects. However they’re additionally shrouded in a lot uncertainty that Mathias Cormann, head of the OECD, stated this week that the organisation was “not ready to current” its standard international financial outlook.

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Nathan Sheets, international chief economist at Citi and a former US Treasury official, has been extra keen to place a really tough estimate on the potential hurt. Earlier than the conflict, international progress was anticipated to be within the area of 5 per cent in 2022, however Sheets reckons “if the [Ukrainian] tensions are extended or escalate additional, the markdowns to this yr’s progress outlook might have to be denominated in share factors”.

The world over, policymakers have been taking motion and pivoting in the direction of a extra gloomy outlook. Just a little over a month in the past, Christine Lagarde, president of the European Central Financial institution, offered an upbeat view of the eurozone outlook, predicting “progress ought to rebound strongly”, however this week she modified her tune, saying current occasions “posed vital dangers to progress”.

Worrying in regards to the surge in US inflation, Federal Reserve chair Jay Powell initiated a sequence of rate of interest will increase, saying he was “conscious about the necessity to return the financial system to cost stability and decided to make use of our instruments to do precisely that”. China’s prime financial official, Liu He, was sufficiently frightened in regards to the state of affairs to make a uncommon intervention on Wednesday, promising the federal government would “enhance the financial system within the first quarter”, in addition to introduce “insurance policies which might be beneficial to the market”.

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Being closest each geographically and economically to Ukraine, Europe’s financial system is most weak. Whereas the OECD didn’t produce forecasts, it revealed a simulation of the possible results of the conflict and commodity worth adjustments lasting all yr. This confirmed drops in progress nearly twice as giant within the eurozone as within the US. “There’s a actual distinction between US and Russian fuel costs and the shock is bigger [in Europe] as a result of it has rather more dependence on Russian fuel,” says Laurence Boone, chief economist of the OECD.

The organisation simulated a 1.4 share level hit to Europe’s financial system in 2022, based mostly on the consequences thus far, however officers are frightened this underestimates the true financial influence. Though oil costs have fallen this week, partly because of a worse international financial outlook, officers aren’t taking a lot consolation from these developments.

Talking privately to the Monetary Occasions, one senior European financial official was frightened about “a very large confidence impact” on households and corporations as soon as the true penalties of Russia’s actions and disruptions to European provide chains had been felt.

The official added that the battle would additionally require enormous pan-European solidarity with Poland and different jap European international locations dealing with the biggest burden of discovering lodging and assist for the 3mn refugees which have already crossed the Ukrainian border, with many extra hundreds of thousands anticipated.

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Protesters in Athens rally against the rising cost of living. European governments are cranking up their policy levers in a bid to protect households from higher commodity prices
Protesters in Athens rally in opposition to the rising price of dwelling. Governments are cranking up their coverage levers to guard households from larger commodity costs © Louisa Gouliamaki/AFP/Getty Photos

Already, governments in Europe are cranking up their coverage levers in a bid to guard households from a number of the worst results of upper commodity costs on their dwelling requirements. The French and Irish governments have agreed to subsidise larger gas prices, with Germany signalling it might quickly observe swimsuit.

However these actions aren’t stopping financial results of the invasion turning into all too seen to customers and corporations. German carmakers have idled factories as a consequence of shortages of components made in Ukraine, and a few Italian supermarkets are even working in need of pasta. Spanish truck drivers went on strike this week in protest at excessive gas prices, creating empty cabinets in supermarkets.

Herbert Diess, the chief government of Volkswagen, advised the FT this week {that a} extended conflict in Ukraine risked being “very a lot worse” for the European financial system than the coronavirus pandemic, as a consequence of provide chain disruption, power shortage and inflation.

World provide chains have already been closely disrupted by the pandemic and bottlenecks, however the conflict in Ukraine presents a contemporary threat to the availability of key supplies. For example, Ukraine provides 70 per cent of neon fuel, which is required for the laser lithography course of used to make semiconductors, whereas Russia is the main exporter of palladium, which is required to make catalytic converters.

People queue for Covid tests for  in Shenzhen, in China, where a resurgence of the virus once again threatens global supply chains
Individuals queue for Covid checks in Shenzhen, China, the place a resurgence of the virus as soon as once more threatens international provide chains © AFP/Getty Photos

The worst-case state of affairs modelled by economists and central banks is that if Russian power provides to Europe are lower off. Jan Hatzius, chief economist of Goldman Sachs, estimates an EU ban on Russian power imports would trigger a 2.2 per cent hit to manufacturing and set off a eurozone recession, outlined as two consecutive quarters of financial contraction.

Rishi Sunak, UK chancellor, has been telling colleagues the hit could be bigger and would rapidly trigger a downturn price £70bn, or 3 per cent, of gross home product within the UK, given its still-close ties to the continental European financial system.

Whereas there have been hopes that Europe’s financial system would possibly develop sooner than the US in 2022, few now suppose that possible. Vitor Constâncio, the previous vice-president of the ECB, warns a recession is feasible, no matter what occurs within the conflict, if confidence is misplaced. “With quantitative shortages progress may go down much more and maybe even flip destructive this yr, as a result of we might have panic and animal spirits could be very low, whereas financial savings would enhance.”

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Lorries queue to cross the Ukraine-Poland border. Volkswagen CEO Herbert Diess says supply chain disruption caused by the war risked being ‘very much worse’ for the European economy than the pandemic
Lorries queue on the Ukraine-Poland border. VW CEO Herbert Diess says provide chain disruption brought on by the conflict risked being ‘very a lot worse’ for the European financial system than the pandemic © Angel Garcia/Bloomberg

Few policymakers are but in panic mode, however, far faraway from jap Europe, they’re all now searching for to keep up confidence to stop a lot worse financial outcomes in 2022. Actions differ as a result of the issues aren’t uniform within the main economies.

In distinction to Europe, the US financial system is working too sizzling, with unemployment at 3.8 per cent in February nearly again to the pre-pandemic price of three.5 per cent, and inflation at a multi-decade excessive final month, with client costs 7.9 per cent larger than a yr earlier.

After imposing the primary rate of interest rise because the pandemic, the Fed signalled this week it meant to repeat the method of quarter-point rises six extra instances this yr and three extra in 2023. The target, within the Fed’s eyes, is to make financial coverage restrictive for the primary time because the international monetary disaster, with rates of interest of virtually 3 per cent.

The enormity of this shift in the direction of searching for to sluggish the US financial system might be proven by how a lot the Fed’s messaging has modified. A yr in the past it was guiding that rates of interest could be barely 0.5 per cent by the tip of subsequent yr.

A firefighter walks past a bombed apartment building in Kyiv, Ukraine. With the largest war on European soil for almost 80 years, Europe is dealing with an even larger influx of refugees than in 2015
A firefighter walks previous a bombed house constructing in Kyiv, Ukraine. Europe is now coping with a fair bigger inflow of refugees than in 2015 © Vadim Ghirda/AP

Though within the US financial coverage is taking a number of the pressure in searching for to information the financial system via a tough time, around the globe there’s an rising recognition that fiscal coverage is prone to be higher suited to restoring confidence in financial constructions.

The US can not simply provide additional stimulus for its overheating financial system, however that possibility ought to be utilized in Europe, in keeping with Reza Moghadam, chief financial adviser at Morgan Stanley. “The coverage device actually needs to be fiscal this time,” he says, including there’s solely a lot even this may obtain. “Governments can offset a number of the prices to customers and companies however it’s tough to offset the influence on commerce or the hit to confidence from larger power prices.”

The OECD estimated that fiscal firepower — stimulus in Europe and China whereas delaying consolidation within the US — could be ample to halve the direct hits to financial output from the conflict in Ukraine and this may not be inflationary if it had been focused to poorer households, who’re a lot tougher hit by larger meals, heating and electrical energy prices.

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China’s sign that it might convey ahead a package deal of assist because the Omicron wave threatens to increase lockdowns throughout giant areas of the nation got here as the federal government additionally paused plans to develop trials of a brand new property tax. Liu’s pledges to assist the financial system had been unspecific however halted a rout in Chinese language equities — even when analysts had been unconvinced the federal government was ending its punishing regulatory overhaul of enterprise.

A shopper searches half-empty shelves at a supermarket in Naples, Italy, where even supplies of pasta are running short
A consumer searches half-empty cabinets at a grocery store in Naples, Italy, the place even provides of pasta are working brief © Kontrolab/LightRocket/Getty Photos

Within the US, the administration is leaning extra on browbeating business. President Joe Biden took to Twitter this week to lambast US oil corporations for not reducing gas costs rapidly for drivers on the pumps as international oil costs fell again. “Oil and fuel corporations shouldn’t pad their income on the expense of hard-working People,” he stated.

Nobody is assured they know the way these coverage responses, drawn up in haste to the fast-changing financial actuality, will work. All most economists are keen to say is that the worldwide outlook in 2022 will likely be worse than they beforehand anticipated and the way unhealthy will depend on the conflict.

As Joseph Capurso, head of worldwide economics on the Commonwealth Financial institution of Australia, wrote this week: “Struggle, above all else, is the final word expression of politics. Politicians, relatively than enterprise folks or bureaucrats, have made selections that if not reversed, may have profound implications for the world financial system within the brief and long run.”

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Europe needs a bolder plan for capital markets

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Europe needs a bolder plan for capital markets

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The author is vice-chair at Oliver Wyman

How will Europe fund the huge sums needed to invest in energy transition, digital infrastructure and defence? Despite a vast €33tn pool of savings, Europe has a plumbing problem. Its capital markets are under-developed, while its banking sector is insufficiently sized to handle the growing demands for capital expenditure. To address the investment conundrums, deeper capital markets are needed.

The requirement is enormous: the European Commission has estimated that the green transition requires an additional €620bn each year to 2030, with another €125bn needed for digital transformation. Moreover, Vladimir Putin’s invasion of Ukraine, and the prospect of a second Donald Trump presidency in the US, are escalating demands for greater military expenditure.

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Yet despite multiple bazookas from the European Central Bank, growth in lending to companies in the region since 2014 has been less than half that of the US. The gap in economic performance between the two has long nagged at Europe’s policymakers. A widening divide makes this angst acute.

“We need to mobilise private savings on an unprecedented scale, and far beyond what the banking system can provide,” former Italian prime minister and ECB president Mario Draghi argued ahead of publication of his upcoming report on enhancing Europe’s competitiveness. 

Despite some progress, there remains a vast gap in venture capital relative to GDP between Europe and the US. European companies have fewer funding options to help them invest and grow.

There is a growing chorus of calls to dust off the unfinished plans for a capital markets union, led by ECB president Christine Lagarde. Recent heavyweight reports by former Italian Prime Minister Enrico Letta and former French central bank governor Christian Noyer also argue the case.

But the idea of a single market for capital across Europe has been stalled for a decade. Bold ideas often get bogged down.

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The recent European elections are likely to make things even more difficult, so perhaps it’s time to change tactics. To clear the system-wide blockages, policy architects should team up with financial plumbers, especially from the private sector.

Revitalising securitisation is the place to start, enabling insurers and pension funds to support Europe’s growth. Securitisation allows banks to transfer assets to investors, in turn freeing up their own lending capacity. This is particularly important as banks provide the majority of credit to European small and mid-sized businesses, which account for almost two-thirds of jobs.

Rules written in response to the financial crisis harshly penalised securitisations and the European market for them has never really recovered. An unintended consequence is that banks have resorted to complex synthetic transfers of risk, which only the largest can undertake, thus holding back regional banks.

Solvency II, the rule book for insurers, makes it economically unappealing to fund a long-term infrastructure project or buy a package of small business loans too, reducing potential returns and limiting available financing.

It’s time to recalibrate securitisation rules to better reflect the true risk profile of assets, keep pace with evolving capital markets and encourage investment for European growth. Reforms to Solvency II rules are also essential, along with system-wide tweaks to the banking framework and financial market standards.

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The venture capital ecosystem must be nurtured, private credit harnessed and the cumbersome sustainability rules for funds recalibrated.

Above all, Europe needs a more flexible and diversified financial market. If capital markets union plans fail to deliver it may result in lower growth. It’s time to call in the plumbers.

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As a young hitchhiker, he survived a ride with a serial killer. Now he’s telling his story | CNN

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As a young hitchhiker, he survived a ride with a serial killer. Now he’s telling his story | CNN



CNN
 — 

Steve Fishman was still in his teens when he came face-to-face with a serial killer.

At 19, he was hitchhiking from a friend’s place in Boston to Norwich, Connecticut, where he was an intern at a newspaper.

Fishman was not far from his destination and sticking out his thumb when a man pulled over in a green Buick sedan, said his name was “Red,” and told him to hop in. The man appeared friendly and had a balding head with wispy patches of red hair, likely the reason for his nickname.

But as Fishman would learn later, the man harbored a dark secret: His name was Robert Frederick Carr III, and he was a serial killer who preyed on young hitchhikers.

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Three years earlier, Carr had raped and strangled two 11-year-old boys and a 16-year-old girl who’d hitched a ride with him in the Miami area. When he gave Fishman a ride, he was on parole after serving time for a rape in Connecticut.

Fishman’s ride lasted only about 15 minutes — Carr dropped him off unharmed — but his memories of that fall 1975 encounter have haunted him for decades.

About six months later, Carr was arrested for an attempted rape of a hitchhiker in the Miami area and then startled detectives when he confessed to kidnapping and raping more than a dozen people and killing four of them. Edna Buchanan, the Pulitzer Prize-winning Miami police reporter who wrote a book about Carr, once said: “He was about the most evil person I ever met.”

Fishman was stunned when he saw Carr’s picture on a breaking news alert. He recognized him instantly as the talkative man who’d given him a ride.

In retrospect, Fishman said, he missed several major red flags that day. First, the sedan’s door latch on the passenger side was jammed and Fishman had to roll down the window and open it from the outside. And Carr had casually mentioned he had just got out of prison.

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“I’m an intern at a local newspaper. And I’m thinking, ‘Wow, that could be a good story about a guy getting out of prison, trying to reintegrate into the community,” Fishman told CNN. “I really didn’t stop to think or ask him what the crime was. I didn’t have any idea.”

Nearly five decades later, Fishman and Carr’s daughter, Donna, are unraveling lingering questions about the pedophile and killer in a new season of the “Smoke Screen” podcast titled, “My Friend, the Serial Killer.”

In the podcast, they explore Carr’s brutal crimes and and deceptions by digging through confession tapes, a box of his personal items from prison and hours of interviews with detectives.

Although her father died in a Florida prison in 2007, Donna continues to struggle with her family’s dark past. And Fishman still wonders how he made it out of Carr’s sedan alive.

In the 1970s, hitchhiking was considered a safe way to get from point A to B.

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“It was a pretty regular mode of transportation back then,” said Fishman, who as an intern constantly relied on random strangers to drive him where he wanted to go.

“Depending on where you lived, we hitchhiked a lot. It was so safe, there were moms who picked me up hitchhiking, with their kids in the backseat with groceries,” he said.

Carr may have played on this belief to carry out his crimes, which mostly targeted hitchhikers.

A TV repairman and car salesman, Carr lived in Norwich with his wife and two kids: Donna and her younger brother. But he traveled nationwide for work and used that opportunity to prey on underage children. Nearly all his crimes, which occurred in the 1970s, involved children under age 18.

Robert Frederick Carr III discusses the slaying of a Hartford, CT, woman with a Connecticut State Trooper Harry Boardsen a the Dade County Detention Center. Carr had previously refused to discuss the slaying of Rhonda Holloway, but told newmen from the Norwich Bulletin he confessed. (Photo by Bettmann Archive/Getty Images)

In 1972, Carr picked up two 11-year-old hitchhiking friends, raped and strangled them, then buried them in Louisiana and Mississippi.  He also picked up a 16-year-old girl and drove her from Miami to Mississippi before he strangled her. He strangled his fourth victim, Rhonda Holloway, 21, not long after his encounter with Fishman and buried her in Connecticut.

Carr would later take investigators on a cross-country trip to show them where he’d buried his victims.

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“What he did to those children was truly unprintable,” David Simmons, a detective involved in his arrest, said in a 2007 interview. “In my 33-year career in law enforcement, Carr ranks as the most dangerous child sexual predator-murderer I ever investigated.”

A daughter changes her last name to escape her father’s shadow

Five decades later, Donna is still living in the shadows of her father’s horrific legacy. She is married, with another last name, and asked CNN to withhold her full name for safety reasons.

In an exclusive interview with CNN, Donna tearfully described an adolescence filled with bullying and jokes about having a serial killer dad. She barely looked people in the eye as a child, she said. Those who knew who she was pointed and talked about her father in hushed tones.

Donna said she first learned about her father’s murderous rampage when she was 12. But she didn’t believe he was the monster he was portrayed to be until he led police on a road trip to unearth his buried victims in Louisiana, Mississippi and Connecticut.

“When he agreed to take the detectives on the search for the bodies, the denial could no longer be. Just every range of emotions you could possibly think of for a 12-year-old girl to go through,” said Donna, 60, who now lives in West Virginia. “And that’s when I started to withdraw.”

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Serial killer Robert Carr’s daughter, Donna, in an undated photo he'd kept with him in prison.

Today Donna has a 27-year-old daughter and worries that a public connection to her father could lead to a new wave of harassment for them. She dropped her father’s last name years ago in favor of her married name, and has told her daughter about his history.

“Sometimes in life, his name can come up on things like background checks for employment, and so on,” Donna said. “I raised my daughter to be very mature and to understand things. I didn’t want to lie to her.”

Donna said she wishes people would show more compassion for relatives of convicted killers. They grieve too, but dare not verbalize their loss, she said.

“No one sees what’s happening in the lives of those people just by hearing about a news story,” she said. “They’re humans and they have feelings and they get hurt, and they suffer trauma. And they are very much victims, too, but in a different sense.”

After her father’s crimes became public, Donna spent much of her adolescence holed up inside their Norwich home with her mother. But one day Fishman, still an intern at the newspaper, knocked on their door after her father’s arrest. He pleaded with Donna’s mother to let Carr know that the guy whose life he’d spared months earlier would like to visit him in jail for an interview.

Fishman finally got a chance to interview Carr in prison in the mid-1970s after numerous attempts.

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In hours of recorded jailhouse interviews, Carr never pretended to be a saint, Fishman said. He talked about how he stole cars and offered sex to men for money when he was younger. He confessed to killing his victims and sounded not the least bit remorseful, Fishman said.

Steve Fishman in a recent photo. After Carr's arrest he interviewed the killer in prison and asked, “Why not me?

“One of the questions that I had for him was, ‘Why not me?’ And that feels like a really bizarre question to ask. But I did. And he basically shrugged and said, ‘I thought you were too big,’” Fishman said.

Fishman’s paper published his interview with Carr. But as Fishman grew up, got married and became a dad, he started rethinking the tone of his coverage.

“An interview with a serial killer was a big story. It was a big journalism scoop that really kind of sent me on the path to be a journalist. And yet, it was a story that I didn’t really like to think about because I did it when I was 19 and 20, and I was really afraid of what my focus had been,” Fishman said.

Fishman said he believes his friendly conversation with Carr during the ride may have clouded his perspective and humanized the killer a little too much.

“I was really afraid that I had gotten the story wrong, that I somehow didn’t understand or appreciate the horror of the story,” he said. “Back then, I looked at it as a societal problem of how do we treat criminals? How do we rehabilitate rapists? And the utter depravation of it kind of slipped by me.”

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That is partly why Fishman is excavating the story in his podcast. He hopes that by understanding Carr better, he can correct the record from a more mature and nuanced viewpoint.

“I’m a father now a few times over. I think about crime and victims differently,” Fishman said. “And that’s kind of why I went to look for Donna.”

After deciding to make the podcast, Fishman sent Donna a Facebook message introducing himself. “She immediately responded with, ‘I’ve been wondering what happened to you,” Fishman said.

Turns out, Donna had spent her lifetime trying to understand her father. She’d wondered: Did he kill people because he was mentally ill and had no access to psychiatric treatment — as Fishman had once written? Or was he just an inherently evil person?

She’d tried reaching out to Fishman over the years and even had called the Norwich paper.

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But the decision to be a part of the podcast was not easy.

“I was hesitant, because I really have not spoken much about it. Very few people know that part of my life,” she said. “It took me a little while to make that decision, and then I decided if I was going to do it with anyone, it was going to be Steve.”

June 11, 1976: James Parish Sheriff Gordon Martin looks at the shallow grave site which contained the body of Todd Payton, 11, of Miami. The sheriff was lead to the site by Robert Frederick Carr III of rowich, CT. Carr also led officers to two other gravesites where they found the bodies of a 16 year old girl and another 11 year old boy. (Photo by Bettmann Archive/Getty Images)

Donna said she believes her father had manipulated Fishman, like he did with everyone in his life. So she and Fishman agreed to meet at her West Virginia farm to understand the complexities of the story from a new point of view.

They looked through boxes stuffed with Carr’s items from prison, including letters Donna had sent him at age 15.  “Dear Dad, I love you. I’m sorry I haven’t written in so long,” one said.

Her father responded with letters urging her to find Jesus. He claimed he had found Jesus, too. But he also sent her sexually suggestive letters, leading her to cut off communication with him.

Donna told CNN that she knew her dad was a monster, but she was holding on to the childhood dream of having a nuclear family. In between her flashes of terror and anger, there were happy memories of family camping trips and the Christmas when her father unwrapped a large stereo he’d bought for the family.

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Donna said the inappropriate letters from her father finally gave her the strength to severe ties with him. But they were so unnerving that she said she constantly called the prison to make sure he had not been released on parole.

One day in the summer of 2007 she found out he was no longer listed as being in prison and had a brief moment of panic, thinking he’d been set free.

But a call to the prison confirmed that her father had died of prostate cancer. He was 63.

Only after his death did her sense of peace slowly start creeping back.

Donna said that despite her initial reluctance, working on the podcast has been a therapeutic experience that has given her a better sense of who her father was.

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“As many diagnoses as my father had as far as his mental state — and there were a lot — I believe he was just born evil,” she said. She’s in counseling and hopes to keep making steps toward healing.

“I kept everything boxed in for so many years. I would just push everything down,” she said.  “It was nice to finally talk about it freely.”

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Judge pauses deadlines in Trump classified documents case over immunity questions

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Judge pauses deadlines in Trump classified documents case over immunity questions

Former U.S. President Donald Trump speaks during a rally at Greenbrier Farms on June 28 in Chesapeake, Va. The judge in the classified documents case against him has paused some deadlines.

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The federal judge overseeing the classified documents case against former President Donald Trump has paused a few deadlines after Trump’s legal team requested a review of the U.S. Supreme Court’s ruling on presidential immunity.

On Friday, Trump’s legal team presented a filing to the court that said this week’s ruling from the nation’s high court means he has blanket immunity from prosecution for his “official acts.” As part of an effort to have the case dismissed, attorneys for the former president asked Judge Aileen Cannon to rule whether or not the conduct involved was official.

Trump’s legal team had also asked to argue the immunity issue before Cannon between now and early September, which would have effectively delayed all aspects of the case for at least two months.

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Cannon’s order issued Saturday does not give a date for any discussion of the immunity issue to be held, but does allow for a short pause related to two deadlines for Trump’s lawyers and one deadline for prosecutors. The order gives federal prosecutors until July 18 to respond to Trump’s request for an extended delay. Trump’s legal team will then be due to reply to the prosecution on July 21.

Trump has argued that his removal of classified documents from the White House and then relocating them to his Florida resort home at Mar-a-Lago constituted an official act — and that the Supreme Court’s ruling should translate to charges brought by Special Counsel Jack Smith being dropped.

In Friday’s court filing, attorneys for Trump also pointed to Justice Clarence Thomas’ concurring opinion in the immunity decision, which questioned Smith’s appointment and authority in the classified documents case. Trump’s team also has sought to have the case dismissed on those grounds, arguing that Smith’s appointment is unconstitutional.

Smith has said the Supreme Court’s decision does not apply to the classified documents case because the documents were taken as Trump was leaving office — and that the former president obstructed FBI investigators from recovering them from Mar-a-Lago once he was no longer president.

Cannon has yet to set a date for a trial in the case. The Trump appointee has been criticized for indefinitely suspending the start date for the trial after announcing she needed more time to examine pretrial motions from the former president’s legal team requesting that the case be dismissed.

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