Friday, October 23, 2020

Casualties of the COVID Recession



August 4, 2020

I guess this might as well also be a "trailing thread", there's becoming so many related entries on the topic.

Lord & Taylor, the oldest retailer in the United States, has filed for bankruptcy protection.  It's new owners, as of last year, the French retailer Le Tote Inc., also has.

So has Jos. A. Banks, the menswear retailer.

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August 5, 2020

Governor Gordon uses CARES Act funds to pay for higher education for unemployed and underemployed adults

CHEYENNE, Wyo. –  Adults who are unemployed or underemployed due to COVID-19 are now eligible for a grant to pay for education at one of the state’s community colleges or the University of Wyoming. This is possible due to funding Governor Mark Gordon provided to the new program.
The Governor has allocated $7.5 million in Coronavirus Aid, Relief, and Economic Security (CARES) Act funding to the Adult Education Grant Program, which will provide scholarships to Wyoming adults between the ages of 25 and 64 who are unemployed or underemployed due to the impacts of COVID-19.
“During this crisis these grants will help impacted workers obtain new skills and advance their careers,” Governor Gordon said. “They will also help Wyoming progress towards its goal of building a highly trained, well-equipped workforce.”
“The Wyoming Community College Commission strongly supports the Governor’s announcement of the Adult Education Grant Program,” said Dr. Ben Moritz, Deputy Director of the Commission. “Working adults are facing both economic and pandemic-related challenges and need training and education to obtain the skills employers are looking for. This grant program opens up these training opportunities to working adults who need it.”
The funds will be administered through an application process, with an opening date expected to be announced very soon. The Governor continues to work with the University and community colleges to develop a program to provide assistance to all students with financial need that have been impacted by COVID-19.
It follows on the heels of the recent allocation of $26.5 million to help aid UW with its safe reopening plan and $32.5 million for community colleges for their plans. The Governor has also allocated nearly $51.5 million in CARES Act funding to support the operations of K-12 schools around the state. Those funds will support the reopening of schools and include $42.5 million for technology to support distance learning, $7.3 million for Personal Protective Equipment (PPE) and $1.7 million to bolster food security programs.
These distributions are just a portion of the $1.25 billion Congress allocated Wyoming through the CARES Act. The State Legislature passed new laws during a May special session guiding how that money can be spent. To date, Governor Gordon has allocated approximately $710 million of those funds to address the impacts of the COVID-19 pandemic.
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August 6, 2010

The Metropolitan Museum of Art laid off 350 staff members.

The Peabody Coal Company devalued the North Antelope Rochelle Mine by $1.4B.

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August 9, 2020

Yesterday the President issued a series of executive orders that are aimed at economic relief due to the recession caused by COVID 19.  This came after negotiations in Congress failed to yield a deal on the competing provisions aimed at the same topic.

The legality of this move is very questionable and undoubtedly will be challenged in court.

Denbury Resources, the oil and gas producer, has taken out Chapter 11 bankruptcy.
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August 21, 2020

American Airlines is halting flights to fifteen small cities.

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August 23, 2020

JBS  has purchased the Mountain States Rosen meat packing plant and has announced it will convert its operations to ground beef.

If it carries through with this it will be a disaster for sheepmen as the result would mean that the lamb crop will exceed packing facilities by 20%.

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August 26, 2020

The state's jobless rate has fallen to 7%, down from 9% at the height of the crash.

American Airlines is eliminating 40,000 jobs in October, 19,000 through furloughs.

August 26, 2020, part two.

Governor Calls First 10% State Budget Cuts “Devastating but Necessary”

 

CHEYENNE, Wyo. – Governor Mark Gordon has finalized the first round of state budget cuts totaling more than $250 million, with an additional $80 million in cuts to maintenance of state buildings and those at the university and community colleges. The 10% cuts to state agencies, boards and commissions will have significant effects on Wyoming communities and citizens, as the cuts will impact important services that people depend on and will reduce general fund dollars that enter the private sector. 

The Department of Health, with the state’s largest budget, will see a 9% cut totaling approximately $90 million. Department of Health programs facing cuts and elimination include those that serve senior citizens, disabled individuals and those with very low incomes. Among the cuts are the phased elimination of the Wyoming Home Services program, an Aging Division program which provides services to individuals who are at risk of premature institutionalization; elimination of some immunization funding for children; and a reduction in funding for early childhood developmental and educational programs. 

The University of Wyoming and the state’s community colleges had their budgets cut by 10% as well. As the Boards of Trustees implement those cuts and address other revenue shortfalls, program cuts have already occurred and more are likely. These cuts will mean reduced higher education options for Wyoming students. One program cut was to Wyoming Works, an initiative the Governor supported to help enhance the state’s workforce. 

The Department of Family Services is eliminating vacant positions in the state office and field offices across the state, including at the Boys School in Worland and the Girls School in Sheridan. Additionally, this means fewer people to work on foster care and child protection. DFS cuts also mean the defunding of the Community Juvenile Services Boards, which are county-based diversion programs to prevent juvenile incarceration, and the burial program, which pays up to $500 to funeral homes for burial expenses for the indigent. 

The Department of Corrections will also see significant cuts to programs that keep the public safe. Parole agents will now be required to supervise additional offenders, and programs that help inmates re-enter Wyoming communities and not reoffend will see reductions in funding. 

“These cuts that we have made are devastating, but necessary given the state’s fiscal picture,” Governor Gordon said. “A third of our revenue has dried up since the beginning of the year. I am Constitutionally required to balance the budget. Our state cannot deficit spend the way the Federal Government can. Just to manage this crisis, difficult decisions had to be made.”

“None of them are easy, nor are they designed to highlight critical programs for political effect,” the Governor continued. “These are the types of cuts we will continue to have to make to get our budget in balance. These hurt, and what comes next hurts more. I recognize the impact these cuts will have on Wyoming families and I am truly saddened that we had to make them.”

The Department of Health, Corrections, Family Services, the University of Wyoming and the community colleges make up two-thirds of the state’s general fund budget. 

The Governor continues to consider options for addressing the remaining $500 million shortfall, an amount just slightly larger than the entire contribution from the State to the University of Wyoming. State agencies have already developed proposals on further cuts to services, and the Governor is working with legislators on other options, all of which require legislative action. 

On top of these cuts the Governor has put in place furloughs for higher paid state employees and is consolidating human resources across government. 

Additional details on each agency's budget cuts are now posted on the Budget Division’s website here.

-END-


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August 27, 2020

It's clear that this is going to result in a lot of layoff at the state level, and many other positions simply going unfilled.  There will undoubtedly be more on this story as it develops.

And, keep in mind, Wyoming's government had already sustained deep cuts.
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August 29, 2020

Antelope coal mine near Gillette laid off an additional 80 workers.

The state detailed is budget cuts on a per agency basis.





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August 31, 2020

United Airlines (and most other U.S. carriers) is doing away with its change fee.

Private donations to the University of Wyoming are up slightly from last year.

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September 2, 2020

A key U.S. economic indicator, the ISM's manufacturing index, rose, more than expected for August, demonstrating that a recovery of the economy is in progress and outperforming expectations.

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September 9, 2020

Saudi Arabia slashed crude prices yesterday resulting in an immediate drop in American crude prices down to $40/bbl or just below, the lowest prices since June.

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September 10, 2020

The National Finals Rodeo will be held in Arlington, Texas this year rather than in Las Vegas due to COVID restrictions.

A study projected the loss of 35,000 jobs in Wyoming if a ban on Federal oil and gas leasing was enacted. There are, however, no such proposals in the work or presently being seriously suggested.

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September 11, 2020

The Decker coal mine in the Powder River Basin furloughed 73 workers for the rest of the year.

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September 12, 2020

Chewy, the mail order dog food supplier, has seen sales increase 47% during the last quarter due to people buying dog food directly from them.

We're included in that story.

Missed in it is that part of the reason is that dog food hasn't been available locally due to food chain distribution problems.  Some people are ordering it as they don't want to go out, but others are because you can't get specific brands locally.  

In any event, my suspicion is that those who have gone over to mail delivery for this product, and others, will stay there.  Another way the virus is changing things (which we have a really long upcoming thread on).

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September 17, 2020

A little off topic, the State of Wyoming granted the Cryptocurrency firm Kraken a bank charter. The bank will be involved in the use of cryptocurrency.  The bank still needs to receive Federal authorization before commencing operations, which it reported on optimistically, but which I'm pretty skeptical it shall receive.

For the first time since records have been kept on the matter, the majority of adults 18 to 29 years old now live with their parents or a parent, with 52% of them having that domestic arrangement, as opposed to 48%, the last record high, which was in 1940.

Adobe's sales have increased 14% as a result of Coronavirus home bound workers.
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September 22, 2020

Enrollment at the University of Wyoming was reported to have only fallen by 420 students this semester, far fewer than feared.

Montana's coal production is down 21%

A committee of the Wyoming legislature has passed a bill advancing a Road Use Charge.  The RUC would track a vehicle's highway miles by use of a GPS and then bill the user.  There's obviously a lot of technology that I don't grasp on this one, not the least of which is that I don't have a single vehicle equipped with a GPS so I don't know how that would really work.
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September 23, 2020

Wyoming's jobless rate has fallen to 6.6%.  Natrona County's was the state's highest at 9.4%.

Sizzler, the nationwide chain restaurant, has filed for bankruptcy.  Premier Inns, a nationwide hotel chain I'm surprisingly not familiar with, is cutting 6,000 jobs.

Polls show that the American public feel that the economy is doing poorly, but that it has now stabilized.

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September 24, 2020

Cancellation of sporting events in Natrona County are estimated to have cost the county $14,000,000 in revenue.

California's Governor issued an executive order banning the sale of new petroleum burning vehicles by 2035. 

News reports on the action largely treat it as an accomplished act, but this will result in litigation and at least at first blush it seems apparent that by doing this he's grossly exceeding his authority.
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September 29, 2020


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October 1, 2020

United Airlines, which served the largest airport in Wyoming, is furloughing 13,000 workers.  American Airlines is furloughing 19,000 workers, although it held out hope of reversing its decision if Congress votes to aid the airlines.
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October 3, 2020

On September 30, 2020, President Trump issued an executive order on strategic minerals, which read:

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), and section 301 of title 3, United States Code,

I, DONALD J. TRUMP, President of the United States of America, find that a strong America cannot be dependent on imports from foreign adversaries for the critical minerals that are increasingly necessary to maintain our economic and military strength in the 21st century. Because of the national importance of reliable access to critical minerals, I signed Executive Order 13817 of December 20, 2017 (A Federal Strategy To Ensure Secure and Reliable Supplies of Critical Minerals), which required the Secretary of the Interior to identify critical minerals and made it the policy of the Federal Government “to reduce the Nation’s vulnerability to disruptions in the supply of critical minerals.” Pursuant to my order, the Secretary of the Interior conducted a review with the assistance of other executive departments and agencies (agencies) that identified 35 minerals that (1) are “essential to the economic and national security of the United States,” (2) have supply chains that are “vulnerable to disruption,” and (3) serve “an essential function in the manufacturing of a product, the absence of which would have significant consequences for our economy or our national security.”

These critical minerals are necessary inputs for the products our military, national infrastructure, and economy depend on the most. Our country needs critical minerals to make airplanes, computers, cell phones, electricity generation and transmission systems, and advanced electronics. Though these minerals are indispensable to our country, we presently lack the capacity to produce them in processed form in the quantities we need. American producers depend on foreign countries to supply and process them. For 31 of the 35 critical minerals, the United States imports more than half of its annual consumption. The United States has no domestic production for 14 of the critical minerals and is completely dependent on imports to supply its demand. Whereas the United States recognizes the continued importance of cooperation on supply chain issues with international partners and allies, in many cases, the aggressive economic practices of certain non-market foreign producers of critical minerals have destroyed vital mining and manufacturing jobs in the United States.

Our dependence on one country, the People’s Republic of China (China), for multiple critical minerals is particularly concerning. The United States now imports 80 percent of its rare earth elements directly from China, with portions of the remainder indirectly sourced from China through other countries. In the 1980s, the United States produced more of these elements than any other country in the world, but China used aggressive economic practices to strategically flood the global market for rare earth elements and displace its competitors. Since gaining this advantage, China has exploited its position in the rare earth elements market by coercing industries that rely on these elements to locate their facilities, intellectual property, and technology in China. For instance, multiple companies were forced to add factory capacity in China after it suspended exports of processed rare earth elements to Japan in 2010, threatening that country’s industrial and defense sectors and disrupting rare earth elements prices worldwide.

The United States also disproportionately depends on foreign sources for barite. The United States imports over 75 percent of the barite it consumes, and over 50 percent of its barite imports come from China. Barite is of critical importance to the hydraulic fracturing (“fracking”) industry, which is vital to the energy independence of the United States. The United States depends on foreign sources for 100 percent of its gallium, with China producing around 95 percent of the global supply. Gallium-based semiconductors are indispensable for cellphones, blue and violet light-emitting diodes (LEDs), diode lasers, and fifth-generation (5G) telecommunications. Like for gallium, the United States is 100 percent reliant on imports for graphite, which is used to make advanced batteries for cellphones, laptops, and hybrid and electric cars. China produces over 60 percent of the world’s graphite and almost all of the world’s production of high-purity graphite needed for rechargeable batteries.

For these and other critical minerals identified by the Secretary of the Interior, we must reduce our vulnerability to adverse foreign government action, natural disaster, or other supply disruptions. Our national security, foreign policy, and economy require a consistent supply of each of these minerals.

I therefore determine that our Nation’s undue reliance on critical minerals, in processed or unprocessed form, from foreign adversaries constitutes an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States. I hereby declare a national emergency to deal with that threat.

In addition, I find that the United States must broadly enhance its mining and processing capacity, including for minerals not identified as critical minerals and not included within the national emergency declared in this order. By expanding and strengthening domestic mining and processing capacity today, we guard against the possibility of supply chain disruptions and future attempts by our adversaries or strategic competitors to harm our economy and military readiness. Moreover, additional domestic capacity will reduce United States and global dependence on minerals produced in countries that do not endorse and pursue appropriate minerals supply chain standards, leading to human rights violations, forced and child labor, violent conflict, and health and environmental damage. Finally, a stronger domestic mining and processing industry fosters a healthier and faster-growing economy for the United States. Mining and mineral processing provide jobs to hundreds of thousands of Americans whose daily work allows our country and the world to “Buy American” for critical technology.

I hereby determine and order:

Section 1. (a) To address the national emergency declared by this order, and pursuant to subsection 203(a)(1)(B) of IEEPA (50 U.S.C. 1702(a)(1)(B)), the Secretary of the Interior, in consultation with the Secretary of the Treasury, the Secretary of Defense, the Secretary of Commerce, and the heads of other agencies, as appropriate, shall investigate our Nation’s undue reliance on critical minerals, in processed or unprocessed form, from foreign adversaries. The Secretary of the Interior shall submit a report to the President, through the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Assistant to the President for Trade and Manufacturing Policy, within 60 days of the date of this order. That report shall summarize any conclusions from this investigation and recommend executive action, which may include the imposition of tariffs or quotas, other import restrictions against China and other non-market foreign adversaries whose economic practices threaten to undermine the health, growth, and resiliency of the United States, or other appropriate action, consistent with applicable law.

(b) By January 1, 2021, and every 180 days thereafter, the Secretary of the Interior, in consultation with the heads of other agencies, as appropriate, shall inform the President of the state of the threat posed by our Nation’s reliance on critical minerals, in processed or unprocessed form, from foreign adversaries and recommend any additional actions necessary to address that threat.

(c) The Secretary of the Interior, in consultation with the heads of other agencies, as appropriate, is hereby authorized to submit recurring and final reports to the Congress on the national emergency declared in this order, consistent with section 401(c) of the NEA (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).

Sec. 2. (a) It is the policy of the United States that relevant agencies should, as appropriate and consistent with applicable law, prioritize the expansion and protection of the domestic supply chain for minerals and the establishment of secure critical minerals supply chains, and should direct agency resources to this purpose, such that:

(i) the United States develops secure critical minerals supply chains that do not depend on resources or processing from foreign adversaries;

(ii) the United States establishes, expands, and strengthens commercially viable critical minerals mining and minerals processing capabilities; and

(iii) the United States develops globally competitive, substantial, and resilient domestic commercial supply chain capabilities for critical minerals mining and processing.

(b) Within 30 days of the date of this order, the heads of all relevant agencies shall each submit a report to the President, through the Director of the Office of Management and Budget, the Assistant to the President for National Security Affairs, and the Assistant to the President for Economic Policy, that identifies all legal authorities and appropriations that the agency can use to meet the goals identified in subsection (a) of this section.

(c) Within 60 days of the date of this order, the heads of all relevant agencies shall each submit a report as provided in subsection (b) of this section that details the agency’s strategy for using the legal authorities and appropriations identified pursuant to that subsection to meet the goals identified in subsection (a) of this section. The report shall explain how the agency’s activities will be organized and how it proposes to coordinate relevant activities with other agencies.

(d) Within 60 days of the date of this order, the Director of the Office of Science and Technology Policy shall submit a report to the President, through the Director of the Office of Management and Budget, the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Assistant to the President for Trade and Manufacturing Policy, that describes the current state of research and development activities undertaken by the Federal Government that relate to the mapping, extraction, processing, and use of minerals and that identifies future research and development needs and funding opportunities to strengthen domestic supply chains for minerals.

(e) Within 45 days of the date of this order, the Secretary of State, in consultation with the United States Trade Representative, shall submit a report to the President, through the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Assistant to the President for Trade and Manufacturing Policy, that details existing and planned efforts and policy options to:

(i) reduce the vulnerability of the United States to the disruption of critical mineral supply chains through cooperation and coordination with partners and allies, including the private sector;

(ii) build resilient critical mineral supply chains, including through initiatives to help allies build reliable critical mineral supply chains within their own territories;

(iii) promote responsible minerals sourcing, labor, and business practices; and

(iv) reduce the dependence of the United States on minerals produced using methods that do not adhere to responsible mining standards.

Sec. 3. The Secretary of the Interior, in consultation with the Secretary of Defense, shall consider whether the authority delegated at section 306 of Executive Order 13603 of March 16, 2012 (National Defense Resources Preparedness) can be used to establish a program to provide grants to procure or install production equipment for the production and processing of critical minerals in the United States.

Sec. 4. (a) Within 30 days of the date of this order, the Secretary of Energy shall develop and publish guidance (and, as appropriate, shall revoke, revise, or replace prior guidance, including loan solicitations) clarifying the extent to which projects that support domestic supply chains for minerals are eligible for loan guarantees pursuant to Title XVII of the Energy Policy Act of 2005, as amended (42 U.S.C. 16511 et seq.) (“Title XVII”), and for funding awards and loans pursuant to the Advanced Technology Vehicles Manufacturing incentive program established by section 136 of the Energy Independence and Security Act of 2007, as amended (42 U.S.C. 17013) (“the ATVM statute”). In developing such guidance, the Secretary:

(i) shall consider whether the relevant provisions of Title XVII can be interpreted in a manner that better promotes the expansion and protection of the domestic supply chain for minerals (including the development of new supply chains and the processing, remediation, and reuse of materials already in interstate commerce or otherwise available domestically);

(ii) shall examine the meaning of the terms “avoid, reduce, or sequester” and other key terms in section 16513(a) of title 42, United States Code, which provides that the Secretary “may make guarantees under this section only for projects that — (1) avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and (2) employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued”;

(iii) shall consider whether relevant provisions of the ATVM statute may be interpreted in a manner that better promotes the expansion and protection of the domestic supply chain for minerals (including the development of new supply chains and the processing, remediation, and reuse of materials already in interstate commerce or otherwise available domestically), including in such consideration the application of these provisions to minerals determined to be components installed for the purpose of meeting the performance requirements of advanced technology vehicles; and

(iv) shall examine the meaning of the terms “qualifying components” and other key terms in subsection 17013(a) of title 42, United States Code.

(b) Within 30 days of the date of this order, the Secretary of Energy shall review the Department of Energy’s regulations (including any preambles thereto) interpreting Title XVII and the ATVM statute, including the regulations published at 81 Fed. Reg. 90,699 (Dec. 15, 2016) and 73 Fed. Reg. 66,721 (Nov. 12, 2008), and shall identify all such regulations that may warrant revision or reconsideration in order to expand and protect the domestic supply chain for minerals (including the development of new supply chains and the processing, remediation, and reuse of materials already in interstate commerce or otherwise available domestically). Within 90 days of the date of this order, the Secretary shall propose for notice and comment a rule or rules to revise or reconsider any such regulations for this purpose, as appropriate and consistent with applicable law.

Sec. 5. The Secretary of the Interior, the Secretary of Agriculture, the Secretary of Commerce, the Administrator of the Environmental Protection Agency, the Secretary of the Army (acting through the Assistant Secretary of the Army for Civil Works), and the heads of all other relevant agencies shall, as appropriate and consistent with applicable law, use all available authorities to accelerate the issuance of permits and the completion of projects in connection with expanding and protecting the domestic supply chain for minerals.

Sec. 6. The Secretary of the Interior, the Secretary of Energy, and the Administrator of the Environmental Protection Agency shall examine all available authorities of their respective agencies and identify any such authorities that could be used to accelerate and encourage the development and reuse of historic coal waste areas, material on historic mining sites, and abandoned mining sites for the recovery of critical minerals.

Sec. 7. Amendment. Executive Order 13817 is hereby amended to add the following sentence to the end of section 2(b): “This list shall be updated periodically, following the same process, to reflect current data on supply, demand, and concentration of production, as well as current policy priorities.”

Sec. 8. Definitions. As used in this order:

(a) the term “critical minerals” means the minerals and materials identified by the Secretary of the Interior pursuant to section 2(b) of Executive Order 13817, as amended by this order; and

(b) the term “supply chain,” when used with reference to minerals, includes the exploration, mining, concentration, separation, alloying, recycling, and reprocessing of minerals.

Sec. 9. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

DONALD J. TRUMP

THE WHITE HOUSE,


September 30, 2020.

It was endorsed yesterday by Wyoming's Governor Gordon.
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October 5, 2020

Wyoming reimposed its conservation tax on oil and gas which had been earlier suspended during the pandemic.

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October 6, 2020

The United States Supreme Court invited the Solicitor General to submit a brief in the suit filed by Wyoming on access for coal to ports of the Pacific Northwest.

Regal Theaters, one of the country's largest movie theater chains, is closing all of its theaters due to the pandemic.

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October 9, 2020

Sales of automobiles in the last quarter were up.

Warner Media is laying employees off due to its business being down during the pandemic.

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October 16, 2020

Both locally and nationwide meat packers have reported an upsurge in demand attributable to pandemic buying.

Walgreens reported better than average fourth quarter growth.

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October 23, 2020

Candidate Biden noted in yesterday's debate that he intends to work rapidly to phase out fossil fuels.

Arch Resources announced yesterday that its making a sharp transition to coking coal and away from thermal coal. As Wyoming's coal is thermal coal and as Arch is a major company in Wyoming this is another blow for Wyoming coal.
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