How a black man ‘outsmarted’ a neo-Nazi group and became their new leader

To understand how Stern came to overtake Schoep’s organization, you first must understand how the Michigan neo-Nazi came to find the California activist.

Stern says that while serving prison time in Mississippi for mail fraud, he formed a relationship with his cellmate and onetime Ku Klux Klan Grand Wizard Edgar Ray Killen. The KKK leader had been convicted in the “Mississippi Burning” killings of three civil rights workers. Though Killen regularly called Stern a racial slur, he nevertheless granted his cellmate power of attorney over his life story and estate.

Stern was paroled from prison in 2011. In 2016, he used his legal discretion to dissolve the Klan organization that Killen once led. That was his first successful infiltration, and the lore of Stern’s relationship with the KKK leader is what Stern says first drew Schoep in.

In 2014, Schoep called Stern to inquire about his relationship with Killen, the activist said. Schoep asked to see the man’s prison ID card and said Stern was the first black man his organization had reached out to since Malcolm X. Stern said he searched Schoep’s name, discovered he was a white supremacist, then arranged for the two to meet in California for a small race-relations summit.

The two fostered a strange kind of relationship, Stern said.

Schoep and Stern remained firmly entrenched in their political camps, he said, fundamentally opposed to what the other represents. But they also engaged in regular debate: about the Holocaust, the ugliness of the Nazi swastika, the fallibility of Schoep’s white-nationalist ideals and, most critically, the fate of his hate group.

The goal, Stern claims, was always to try to change Schoep’s mind.

“From day one, I always told him: ‘I don’t agree with you; I don’t like you,’ ” Stern said. “I talked to him because I wanted to hope to change him.”

Stern did not change Schoep’s beliefs.

But according to Stern’s version of recent events, he was able to accomplish the next best thing.

In early 2019, Stern said Schoep came to him for legal advice on the lawsuit, which was filed in 2017 by a Charlottesville counterprotester against NSM and other white-nationalist groups that attended the Unite the Right rally.

Schoep seemed “rattled,” Stern said, and began talking about making a change. “I was hoping he was talking about his ideology,” Stern said.

Instead, Stern said the white-nationalist leader called NSM an “albatross hanging around his neck” and said he was looking for ways to get out. He still held the same beliefs, Stern said, but he was ready to cut ties with NSM and start a new organization because he felt underappreciated by his followers and left out of the mainstream white-nationalist movement that had swept the country in the wake of the 2016 presidential election.

Schoep was concerned about the repercussions of the Charlottesville lawsuit and the legal bills he was shouldering, Stern said, and he confided in the California activist as he sought solutions.

“I saw a crack in that armor,” Stern said.

So he encouraged Schoep to get a fresh start by handing Stern the control of the Detroit-based organization and website.

Schoep said yes.

“He knew that he had the most vulnerable, the most loose-cannon members that they had ever had in the organization,” Stern said. “He realized somebody was going to commit a crime, and he was going to be held responsible for it.”

Stern says he’s preparing for what comes next and is seeking guidance from Jewish leaders. He said he does not plan to dissolve the corporation because he doesn’t want Schoep’s followers, or others in the white-nationalist movement, to reincorporate it.

Stern admits his plans for the website are still evolving, but his primary goal is to offer it as a reclaimed space to Jewish organizations that could help him educate NSM’s followers on the history of the Holocaust.

“Everything is out in the open,” Stern said. “My plans and intentions are not to let this group prosper. It’s my goal to set some hard records right.”

Schoep took control of NSM in 1994 and was responsible for growing its membership and brand as an organization of Holocaust deniers and Adolf Hitler acolytes. The group maintains a website that draws in millions of visitors from around the world, Stern said, and has organized public rallies across the county.

The group, whose members wear SS-like uniforms that mirror those worn in Nazi Germany, was founded under a different name in 1974 by two former officials of the American Nazi Party, according to the Southern Poverty Law Center. “Signing over leadership of an organization this old is the equivalent of a death sentence in the white-nationalist movement,” said Keegan Hankes, an SPLC research analyst. “It’s one of the strangest things I’ve seen since I started tracking these things five years ago.”

Several of the people listed on the NSM website as leaders within the organization did not respond to a request for comment from The Post on Friday. One man, who identifies himself as SS Capt. Harry L. Hughes III and is listed as the public relations director for NSM, said in an email that he is “not involved in the NSM’s legal affairs” and was “not at liberty to discuss anything, until Commander Schoep personally makes a statement.”

“Just like you and the rest of the media, I’m waiting in suspense, too,” Hughes added.

Matthew Heimbach, a leading white-nationalist figure who briefly served last year as the organization’s community outreach person, told the Associated Press that there has been conflict between NSM’s leaders, including Schoep, and its membership. Heimbach estimated the group had 40 dues-paying members last year.

The biggest challenge the group has faced, Hankes said, was being outshone by the more refined efforts of new alt-right leaders such as Richard Spencer. There was tension within the organization about the need for a shift to a less violent, less explicit brand of neo-Nazism, he said.

“A lot of these groups see [NSM] as extremely detrimental to anything regarding identity politics,” Hankes said.

Stern told The Post that he and Schoep discussed this infighting and that Schoep expressed a desire to leave NSM behind and start a new organization with less baggage.

Schoep offered a different perspective in his statement: “I realize that there is a lot of confusion right now, and ongoing legal matters prevent me from being more thorough in my explanation of events. Regardless, it is important for me to communicate that my actions are always done for a reason, and I would never purposefully damage the organization I have spent so many years serving.”

Though Schoep is no longer legally affiliated with NSM, he still faces the lawsuit because he is listed as a defendant.

“It’s definitely not good for him, and it shouldn’t be good for him,” Stern said. “You spend 25 years terrorizing people, you can’t rebrand overnight. It doesn’t work like that.”

Stern, who runs Racial Reconciliation Outreach Ministries, is still sorting through the legal intricacies his NSM leadership entails. He is listed as the attorney representing NSM in court filings, but a judge ruled Friday that he cannot be NSM’s lawyer because corporations are not legally authorized to represent themselves in court.

Stern said he is working on hiring an outside lawyer to refile his motion for a summary judgment on the lawsuit. He has also offered the plaintiff’s attorneys full access to NSM social media accounts, he said, because he claims to own those, too.

“Say what you want about me,” Stern said. “But I’ve done this twice now.”

Time for Netanyahu to Go

Israel’s prime minister increasingly resembles America’s 37th president.

When the final chapter on Benjamin Netanyahu’s political life is written — and it may be a long time from now — he is likely to go down as the Richard Nixon of Israel: politically cunning, strategically canny, toxically flawed.

The flaws came further to light on Thursday when Attorney General Avichai Mandelblit announced that he would indict the prime minister on charges of bribery, fraud and breach of trust. Netanyahu called the inquiry “a witch hunt” and accused Mandelblit of being “weak,” sounding (surely not by coincidence) just like Donald Trump on the subject of Jeff Sessions and the Russia investigation.

Israeli law allows Netanyahu to contest the indictment through a hearing, a process that could take as long as a year. He has no intention of resigning and hopes to win a fifth term when elections are held on April 9.

Perhaps he will. He shouldn’t.

That’s not because Netanyahu is necessarily guilty, or guilty of much. Previous Israeli leaders, including Yitzhak Rabin, have been subject to legal inquests that hinge on relatively trivial crimes. The charges against Netanyahu — the most serious of which involves the claim that he helped a businessman obtain favorable regulatory decisions in exchange for positive media coverage — are still far from conclusive.

Netanyahu’s solution has been to scrounge for votes on the farther — and farthest — right. A few of those votes will come from Otzma Yehudit (or “Jewish Power”), a racist party descended from Rabbi Meir Kahane’s outlawed Kach Party. Its leader, Michael Ben-Ari, was denied a United States visa because Washington rightly considers Kach a terrorist organization. If Netanyahu manages to cobble together a ruling coalition, Ben-Ari could become a power broker within it.

That alone is reason enough to want to see Netanyahu given the boot. Add to the list his

Netanyahu is a man for whom no moral consideration comes before political interest and whose chief political interest is himself. He is a cynic wrapped in an ideology inside a scheme.

Nor is the blight simply moral. Jews the world over face a swelling and increasingly deadly tide of anti-Semitism, while Zionism has become a dirty word in left-wing circles. To have an Israeli prime minister lend credence to the slur that Zionism is a form of racism by prospectively bringing undoubted racists into his coalition is simply unforgivable. It emboldens the progressive assault on Israel. It leaves its defenders embarrassed and perplexed.

Most seriously, it weakens a central element in the defense of Israel and the Jews: moral self-confidence. Anti-Israel slanders may abound, but they will do little to hurt the state if a majority of Israelis understand they have no serious foundation in truth. Netanyahu’s behavior jeopardizes that confidence.

From Economic Crisis to World War III

The response to the 2008 economic crisis has relied far too much on monetary stimulus, in the form of quantitative easing and near-zero (or even negative) interest rates, and included far too little structural reform. This means that the next crisis could come soon – and pave the way for a large-scale military conflict.

BEIJING – The next economic crisis is closer than you think. But what you should really worry about is what comes after: in the current social, political, and technological landscape, a prolonged economic crisis, combined with rising income inequality, could well escalate into a major global military conflict.

The 2008-09 global financial crisis almost bankrupted governments and caused systemic collapse. Policymakers managed to pull the global economy back from the brink, using massive monetary stimulus, including quantitative easing and near-zero (or even negative) interest rates.

But monetary stimulus is like an adrenaline shot to jump-start an arrested heart; it can revive the patient, but it does nothing to cure the disease. Treating a sick economy requires structural reforms, which can cover everything from financial and labor markets to tax systems, fertility patterns, and education policies.

Policymakers have utterly failed to pursue such reforms, despite promising to do so. Instead, they have remained preoccupied with politics. From Italy to Germany, forming and sustaining governments now seems to take more time than actual governing. And Greece, for example, has relied on money from international creditors to keep its head (barely) above water, rather than genuinely reforming its pension system or improving its business environment.

The lack of structural reform has meant that the unprecedented excess liquidity that central banks injected into their economies was not allocated to its most efficient uses. Instead, it raised global asset prices to levels even higher than those prevailing before 2008.

In the United States, housing prices are now 8% higher than they were at the peak of the property bubble in 2006, according to the property website Zillow. The price-to-earnings (CAPE) ratio, which measures whether stock-market prices are within a reasonable range, is now higher than it was both in 2008 and at the start of the Great Depression in 1929.

As monetary tightening reveals the vulnerabilities in the real economy, the collapse of asset-price bubbles will trigger another economic crisis – one that could be even more severe than the last, because we have built up a tolerance to our strongest macroeconomic medications. A decade of regular adrenaline shots, in the form of ultra-low interest rates and unconventional monetary policies, has severely depleted their power to stabilize and stimulate the economy.

If history is any guide, the consequences of this mistake could extend far beyond the economy. According to Harvard’s Benjamin Friedman, prolonged periods of economic distress have been characterized also by public antipathy toward minority groups or foreign countries – attitudes that can help to fuel unrest, terrorism, or even war.

For example, during the Great Depression, US President Herbert Hoover signed the 1930 Smoot-Hawley Tariff Act, intended to protect American workers and farmers from foreign competition. In the subsequent five years, global trade shrank by two-thirds. Within a decade, World War II had begun.

To be sure, WWII, like World War I, was caused by a multitude of factors; there is no standard path to war. But there is reason to believe that high levels of inequality can play a significant role in stoking conflict.

According to research by the economist Thomas Piketty, a spike in income inequality is often followed by a great crisis. Income inequality then declines for a while, before rising again, until a new peak – and a new disaster.

This is all the more worrying in view of the numerous other factors stoking social unrest and diplomatic tension, including

  • technological disruption, a
  • record-breaking migration crisis,
  • anxiety over globalization,
  • political polarization, and
  • rising nationalism.

All are symptoms of failed policies that could turn out to be trigger points for a future crisis.

.. Voters have good reason to be frustrated, but the emotionally appealing populists to whom they are increasingly giving their support are offering ill-advised solutions that will only make matters worse. For example, despite the world’s unprecedented interconnectedness, multilateralism is increasingly being eschewed, as countries – most notably, Donald Trump’s US – pursue unilateral, isolationist policies. Meanwhile, proxy wars are raging in Syria and Yemen.

Against this background, we must take seriously the possibility that the next economic crisis could lead to a large-scale military confrontation. By the logicof the political scientist Samuel Huntington , considering such a scenario could help us avoid it, because it would force us to take action. In this case, the key will be for policymakers to pursue the structural reforms that they have long promised, while replacing finger-pointing and antagonism with a sensible and respectful global dialogue. The alternative may well be global conflagration.