Showing posts with label inflation. Show all posts
Showing posts with label inflation. Show all posts

Sunday, January 28, 2024

Monday, January 28, 1974. End of the Siege of Suez.

The Israeli siege of the Egyptian city of Suez ended at noon.  The IDF withdrew and the 20,000 encircled Egyptians were able to withdraw across the Suez Canal.

Suez.

Both Time and Newsweek's covers dealt with the Nixon tape. U.S. News & World Report's cover was on inflation.  

Sports Illustrated had a cheesecake photo, although it hadn't crossed over into pornography on the cover yet, for its swimsuit issue. Ann Simonton was the cover model, who was actually relatively covered.

Indonesian President Suharto took control of the country's internal security agency.

Bolivia was declared to be in a state of siege following a peasant uprising at Cochambamba.


Mohammed Ali and Joe Frazier fought for a second time in a non-title fight.  Ali won.

George Foreman was the heavyweight champion at the time.

Friday, January 19, 2024

Saturday, January 19, 1974. The Battle of the Paracel Islands.

The People's Republic of China and the Republic of South Vietnam engaged in combat, mostly naval, but some ground, over the Paracel Islands. The events had been preceded by maneuvers and landings the prior few days after South Vietnam found the Chinese had landed on an island and had armed vessels nearby.


The following day, January 20, the Chinese would prevail.

The South Vietnamese defeat would later be regarded as a Vietnamese one in general as North Vietnam also did not welcome the Chinese incursion and would, post Vietnam War, demand that the Chinese depart, which they have not.  North Vietnam, upon taking over the entire country, praised the efforts of the South Vietnamese troops who attempted to defend the islands.


The People's Republic of China, Republic of China (Taiwan) and Vietnam, all claim the islands

The French government floated the franc, which would continue for six months, in order to maintain its value.

Monday, January 15, 2024

Tuesday January 15, 1924. New Parliament, First Radio Play, The Frac, and the German Navy takes a tour.

King George V and Queen Mary opened a new session of Parliament.

The first radio play, ever, was broadcast by the BBC. The play was entitled Danger.  The play, which as endured and been rebroadcast over the years, involves a plot featuring a young couple and an older man trapped in a pitch-black flooding mine.

The French Cabinet drafted a plan to stabilize the cascading franc.  It called for tax hikes and a reduction in the size of the civil service.


The SMS Berlin of the republican German navy, the Reichsmarine left for a two-month tour of the North Atlantic, the first German warship to do so since World War One.

Ensign of the Reichsmarine.

The current German Navy is called the Deutsch Marine.  Its ensign is as follows:


The Berlin was a prewar ship that had been retained under the Versailles Treaty.  She would not be in service much longer, being decommissioned in 1929, even though she had been modernized and recommissioned in 1922.  She became a barracks ship in Kiel that year, and survived World War Two.  in 1947 she was loaded with chemical weapons and towed out and sank thereby becoming a lasting problem to later generations.

Thursday, January 4, 2024

Friday, January 24, 1924. Claiming control of the oilfields.

 De la Huerta's confederates claimed control of Mexico's oil.



The German government issued the Emminger Reform abolishing juries in favor of a mixed system of professional and lay judges as a cost savings measure.  Lay judges were in turn abolished by the Third Reich on September 1, 1939.

The jury system is uncommon in continental Europe, in any event.  It was briefly restored in Germany between 1948 and 1950, but upon formation of the Federal Republic of Germany it was again removed save for Bavaria, which adopted the system as it existed prior to this date.

Conclusions were being drawn about French inflation.

Tuesday, November 21, 2023

Subsidiarity Economics. The times more or less locally, Part XV. The 2% solution?

 August 9, 2023

3%

That is what inflation has fallen to.

The target rate is nonsensically 2%, which still robs workers of their wages.  Given the recent inflation, a more sensical target would be at or about 0%, or better yet a slight deflationary rate of 1%.

That's the core inflationary rate, by the way. Real inflation is at about 4.1%.

The US is banning private equity investment in China and investment in some Chinese technology companies.

August 12, 2023

The EPA estimates that by 2055 most petroleum fueled vehicles will have attrited off the road.

August 16, 2023

From the Oil City News:
CASPER, Wyo. — Rocky Mountain Power, the state’s largest electric utility, is proposing to raise its energy rates by 29.2%.
August 24, 2023

Before more consolidation of everything is just what we needed:

Subway sandwich chain sells itself to Dunkin’ owner Roark Capital

August 27, 2023

France will spend €200 million to destroy excess wine in hopes of shoring up the struggling wine industry.  Wine consumption in Europe has been falling, while production increasing.

September 7, 2023

Chinese exports, upon which that nation depends, have decreased every month of 2023.  China's economy is dependent upon exports and there is serious discussion on the country going into a recession.

September 11, 2023

Alexandria Ocasio-Cortez faced severe criticism from her constituents, after sharing a video on Instagram from the Kiwi left-wing Aotearoa Liberation League that accredited rising prices solely to corporations and described the discussion surrounding inflation as propaganda.

When I read the headline, I actually wondered if she'd reposted something of Robert Reich's. . . 

The bloom has really been off AoC's rose in recent months.

Trump has been heard at campaign dinners indicating that if re elected he will cut taxes, which are too low to start with, and use tariffs as a trade weapon.

September 15, 2023

The United Auto Workers are out on strike.


September 20, 2023

Ford Motors in Canada reached a deal with is union to avoid a strike there.

Republican infighting kept two budget bills from advancing there.

Cont:  

A drought in Spain has caused a 50% increase in the price of olive oil, which in turn is causing a spike in olive oil theft.

September 27, 2023

The Writers Guild of America has reached an accommodation with the entertainment industry and has ended its strike.

U.S. regulators and seventeen states have sued Amazon on Tuesday over allegations it uses its position in the economy to inflate prices.

The Senate has drafted a stopgap funding bill it will likely pass, but there's no certainty the dysfunctional House of Representatives will.

September 28, 2023

Kevin McCarthy, prisoner of GOP populists, will not take up the Senate bill to fund the government, making a shutdown impossible to avoid.

The House of Representatives is, quite frankly, dysfunctional.

And given this, we will close out this edition of Subsidiarity Economics, even though its barely gone, and start one focused on that theme.

But not before noting that the U.S. economy recently grew 2.1%.

October 1, 2023.

Crisis postponed. 

The following crisis that is:

Subsidiarity Economics. The Shutdown edition.

September 28, 2023


Kevin McCarthy, prisoner of GOP populists, will not take up the Senate bill to fund the government, making a shutdown impossible to avoid.

The House of Representatives is, quite frankly, dysfunctional.

And given this, we will close out this edition of Subsidiarity Economics, even though its barely gone, and start one focused on that theme.

Kevin McCarthy should hang his head in shame.

What all will close, assuming that the House doesn't get its act together today, isn't clear. Some things will, but "vital" things apparently will not.  Some Federal employees will be asked to work without pay, which is interesting, as working without pay is involuntary servitude, and was banned by a post Civil War constitutional amendment.

Congress, oddly, will get paid. 

The mail will continue to be delivered, as the U.S. Post Office funds itself.

Arizona and Utah have voted to spend state funds to keep their National Parks open.  Senator John Barrasso asked the Secretary of the Interior to use park entry fees to do the same.

Fat Bear Week is off due to the dysfunctional House of Representatives having been taken hostage by populists.

Government contracts and modifications to contracts will not be issued.

Medicaid will continue to be paid. Medicare will continue on.

The FHA will have limited staff and loans it processes will be delayed.

The SBA will shut down.

The ATF might not process background checks, which may lead to a complete halt on the sale of firearms by licensed firearm's dealers.

The latter is the thing that Wyomingites are likely to complain about right away.  People in industries supported by tourism are likely to notice the closure of the parks rapidly.

All of this, of course, is because this will be a managed shut down, which is really a limited shutdown or a slow-down.  If things continue for some time, and this time they might, a real shutdown may creep in, which Wyomingites, in spite of apparently disdaining the Federal Government, would really feel.  A closure of the airports, for example, could be expected at some point, And a cessation of petroleum production on Federal lands due to a lack of Federal oversight.  Perhaps a cessation of grazing on the Federal domain for the same reason.  And a lack of highway funds.

None of that will happen rapidly, of course.  Or maybe at all.

September 30, 2023.

We’re likely to avert a shutdown, but the clown show continues

Let the grousing now being.

Not from Reich, with whom I obviously have a love/hate relationship, but from the MAGA far right out in the hinterlands, who will be outraged, outraged I tell you, and they'll tell you on their way from the television to the refirgerator for a Coors Lite (can't touch that Bud, of course) who would, they'll say, have enjoyed the shutdown. . .right up until they didn't, and then somehow, it would have been the Democrats fault.Congress passed a 45-day stopgap spending bill yesterday.  In doing so, Speaker McCarthy noted:

We’re going to be adults in the room. And we’re going to keep government open.
Well now he has 45 days to see if he can do that.

The bill omitted funding for Ukraine.  President Biden noted that in his address regarding the stopgap bill.
Tonight, bipartisan majorities in the House and Senate voted to keep the government open, preventing an unnecessary crisis that would have inflicted needless pain on millions of hardworking Americans. This bill ensures that active-duty troops will continue to get paid, travelers will be spared airport delays, millions of women and children will continue to have access to vital nutrition assistance, and so much more. This is good news for the American people.
 
But I want to be clear: we should never have been in this position in the first place. Just a few months ago, Speaker McCarthy and I reached a budget agreement to avoid precisely this type of manufactured crisis. For weeks, extreme House Republicans tried to walk away from that deal by demanding drastic cuts that would have been devastating for millions of Americans. They failed.
 
While the Speaker and the overwhelming majority of Congress have been steadfast in their support for Ukraine, there is no new funding in this agreement to continue that support. We cannot under any circumstances allow American support for Ukraine to be interrupted. I fully expect the Speaker will keep his commitment to the people of Ukraine and secure passage of the support needed to help Ukraine at this critical moment.

McCarthy had to rely on Democrats to pass the bill, and will now surely face an effort aimed at his removal by his hard right. 

October 4, 2023

Facebook's parent company Meta is laying off 11,000 employees.

October 5, 2023

75,000 Kaiser Permanente employees went on strike Wednesday. Staffing levels are an issue.

October 8, 2023

California has put into effect a law requiring  requires public and private US businesses with revenues greater than $1 billion operating in California to report their emissions comprehensively.

October 9, 2023

Workers for Mack Truck are going out on a UAW strike.

October 11, 2023

The UAW's strike has expanded to include a Ford plant in Kentucky.

October 15, 2023

The price of oil has jumped 6% since April.

October 24, 2023

Icelandic women are on strike for wage equality.

October 27, 2023

The economy grew by 4.9% last quarter.

October 28, 2023

Governor Gordon sounded climate alarm bells in a speech at Harvard this past week, noting that Wyoming needed to decarbonize. This caused the Wyoming Freedom Caucus to freak out.

October 31, 2023
Robert Reich.

November 2, 2023

Headline:

Union sets its sights on Tesla

November 5, 2023

Voters in Maine are voting on a referendum to replace the state's two electric companies with consumer-owned Pine Tree Power Company.

The proposal goes to the polls on Tuesday.  It states:
















November 9, 2023

The Air Force wants Congress to restrict the placement of wind farms near nuclear missle silos.

November 10, 2023

Moody’s Investors Service is revising the outlook on the U.S. government’s ratings to negative from stable but affirming the long-term issuer and senior unsecured rating at AAA.

Lest anyone doubt, this is bad for the economy and reflects a years long inability to get the deficit under control.

November 21, 2023

Ontario Knife Co. was sold to Blue Ridge Knives and all 56 employees at its Frankliville, New  York plant lost their jobs as a result.  Blue Ridge owns 800 brand names.

Last prior edition:


Monday, November 20, 2023

Tuesday, November 20, 1923. Navy Debutantes, Not giving up, Germany returns to the Gold Standard, Traffic light patent.


The National Photo Company published some photographs of "Navy Debutantes", which were likely the daughters of Navy officers.



Oklahoma's governor had been impeached, but he wasn't giving up.




Germany returned to the gold standard as a successful measure to address hyperinflation.

Oddly, the Reichsbank's president, Rudolf Havenstein, died on this day at age 66.

Patent No. 1,475,024 was issued to Garret Morgan for the three position traffic light.

Morgan, an African American who had only a 6th Grade education, was an inventor with a number of inventions to his credit.  Very unusual for the day, he was also a party to a "mixed marriage", his wife being a Czech immigrant.

Monday, October 16, 2023

Tuesday, October 16, 1973. Doubling the price of oil and false peace.


OPEC doubled the price of oil from $2.18/bbl to $5.12/bbl.  It didn't consult with the oil companies before doing so, and in some ways initiated in the modern, post, post World War Two, economy.

$5.12?  Yes, that's what it was.

That would be $33.75 adjusted for inflation.

The UK and Iceland came to an agreement to end the Cod War.

Henry Kissinger and Lê Đức Thọ were awarded the Nobel Peace Prize.  The North Vietnamese negotiation, however, did not accept it, stating:

However, since the signing of the Paris agreement, the United States and the Saigon administration continue in grave violation of a number of key clauses of this agreement. The Saigon administration, aided and encouraged by the United States, continues its acts of war. Peace has not yet really been established in South Vietnam. In these circumstances it is impossible for me to accept the 1973 Nobel Prize for Peace which the committee has bestowed on me. Once the Paris accord on Vietnam is respected, the arms are silenced and a real peace is established in South Vietnam, I will be able to consider accepting this prize. With my thanks to the Nobel Prize Committee please accept, madame, my sincere respects.


Sunday, September 10, 2023

Cliffnotes of the Zeitgeist. 46th Edition. Fatigue.


September 3, 2023.

U.S. Rep. Cory Mills, R-Florida, and articles of impeachment, and issue/culture fatigue

Apparently, Rep. Mills has nothing to actually do.  Perhaps somebody can find something for him, so he has real problems to work on.

I can't help but note that District Attorney Willis in Georgia made a suggestion of that type to Representative Jim Jordan, expressing what is undoubtedly a widely held view that people are really tired of Congress acting like a bunch of children all the time.  

Most people are tired of this.  And by that, I mean a Congress that is monkeying around with bills that aren't going anywhere and are of the nature of throwing gasoline on a fire. We know that this impeachment is going nowhere. We know that a recent bill to do away with the Department of Education isn't either. We know that shutting the government down, which is going to happen soon, just causes the government to lose money.

Some people out in the audience of society may believe that all of this serves to get something done, but it sure isn't obvious.  Most people are simply tired.  Of course, this helps whip up a pre convinced base even though nothing is actually going to happen on a lot of these things.

Relating to fatigue, on another topic I posted on, that being the upcoming Synod on Synodality, I suspect a lot of Catholics are tired of this topic:

Dread and the Synod on Synodality.


At some point, constant change and the search to change things wears people down.  A good argument can be made right now that after Covid, and after a lot of people, would just like things to calm down for a while.  That's part of the reason, I suspect, that younger people are looking back to more traditional times, and maybe that the whole culture is, except in certain quarters.

That may explain why the leaders of the Church, or some of them, are keen on a synod on synodality, as difficult as it is to figure out what that means, while globably, in the pews, only at most 2% of Catholics participated in the survey process.  That alone should give the participants in the synod pause, as it may very well mean that the 2% that responded doesn't reflect anywhere near a statistically signficant number of Catholics.  It may well be that the maybe 5% or whatever of Trads in the parish this morning do.

Of course, part of the reason changed, including unwanted ones, occur is that most people are just busy living their lives. That means people who have what a lot of us do not, surplus time, tend to be reflected in change.  In some instances, that's because of the way that people are employed.  It's ofen noticed by some that institutions are resistant to change, but by the same token, change can be forced on members of an institution simply becuase somebody in charge wants to change things, and everyone else just has their shoulder to the wheel and can't really take note until the change arrives.

On people in different quarters, and obviously wanting things to be different, Saturday I was driving up a really busy city street and saw, on the sidewalk headed towards the center of downtown, which was far away, a young woman riding a bicycle.

She was probably around twenty, fairly thin, had a large tattoo running up her side, and was topless.

It was impossible not to see, and I wonder if she had done it before, as quite frankly she looked nervous.  She probably should have, as she wasn't like the late middle-aged woman, now deceased, who used to ride a Vespa around here topless.  It was always a shock to encounter her, but as impolite as it may be to say it, she wasn't attractive. This young woman was, and for any normal male, she was going to be noticed, an impact added to by the fact that she was well-endowed.

My guess is she was headed to David Street Station, where her breasts were going to be oggled at by many.  And the look on her face belied the fact that she no doubt would maintain that she was there to make some other point.

Another reason we really need to put the brakes on things until we take a look at Chesterton's Fence on all sorts of things.
There exists in such a case a certain institution or law; let us say, for the sake of simplicity, a fence or gate erected across a road. The more modern type of reformer goes gaily up to it and says, “I don’t see the use of this; let us clear it away.” To which the more intelligent type of reformer will do well to answer: “If you don’t see the use of it, I certainly won’t let you clear it away. Go away and think. Then, when you can come back and tell me that you do see the use of it, I may allow you to destroy it."

Indeed, something of this type, although not quite of this type, lead commentator Amy Otto, in an Op Ed written some years ago, to maintain "Men Did Greater Things When It Was Harder To See Boobs".  The caption on the article, which was flippant but which addressed a serious topic, if not idential one, not too surprisingly went viral.

Also not too surprisingly, this is a topic that's been pretty widely studied and the entire observational nature of this is hard-wired into men.  That some don't get this is another defiance of science.

And one putting all the burden, I'd note, on men.  I don't really want to be in the position of taking note of some 20-year-old woman's bare breasts, and I don't want to be seeing something that only a spouse should.  But now I have, and I can't get that back, nor can she, nor can the probably hundreds of men, most with fewer reservations than me, that saw her on Saturday and whose thought went where every they let them go.

US Suicide Rates at all-time high

US suicides hit an all-time high last year

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About 49,500 people took their own lives last year in the U.S., the highest number ever. That's according to new government data posted Thursday. The Centers for Disease Control and Prevention has not yet calculated a suicide rate for the year. But available data suggests suicides are more common in the U.S. than at any time since the dawn of World War II. Experts caution that suicide is complicated, and that recent increases might be driven by higher rates of depression or limited availability of mental health services. The American Foundation for Suicide Prevention says a main driver is the growing availability of guns.

A horrific story, to be sure.

It occured to me for some reason that all things being equal, a record number would likely to be set every year, as the American population continues to grow.  Having said that, the rates are very high, which is referenced in this article.

Predictably, the reporter blames it on the "growing availability of guns", but firearms have been easy to get throughout American history. Availability has grown from the mid 20th Century, which saw a lot of gun control provisions come in which have later faded, in part due to being found unconstitutional, with the 1970s probably the high watermark of that, but if we go back prior to the 1930s, we'd find that things were, in most places, wide open.  Even children could buy firearms in most of the US prior to the 1950s.

What has really changed is a society within any kind of foundation whatsoever.  In the entire Western World, the culture built on Catholicism, but heavily impacted by the Reformation, has seen the foundation attacked and dismantled to be instead one that's now centered on radical individualism.  It's not healthy, and it's killing people.  Added to that, the increasing corporatist culture work in a box life throughout the developed world, that removes people radically from nature, is levying a toll. The combination of both is deadly.

Everyone claims to want to do something about this, which seems to amount to doing something about it sort of clinically, rather than existentially.

Storm Warning

At least 55 people died on Maui. Residents had little warning before wildfires overtook a town

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Maui residents who made desperate escapes from oncoming flames have asked why Hawaii’s famous emergency warning system didn’t alert them as wildfires raced toward their homes. Officials have confirmed that Hawaii emergency management records show no indication that warning sirens were triggered before devastating fires killed at least 55 people and wiped out a historic town. The blaze is already the state’s deadliest natural disaster since a 1960 tsunami. The governor warned the death toll will likely rise. Hawaii boasts what the state describes as the largest integrated outdoor all-hazard public safety warning system in the world. But many of Lahaina’s survivors said in interviews that they only realized they were in danger when they saw flames or heard explosions nearby.

I really have to wonder how long a large segment of American society, and the official leaders of the GOP, are going to continue to pretend there's nothing going on climate wise.  It's extremely difficult to grasp why they won't face reality on this, unless of course it's an example of worshiping money as if it was as religion.

People are now dying. Shouldn't this be taken seriously?

Without fail, one of our state's Congressional delegation comes on television or other media to promote fossil fuels and at least two out of the three like to talk about "Biden's radical climate agenda".  Keeping a natural climate isn't a "radical agenda" and simply refusing to discuss this topic is foolish.

Speaking of the Maui fires, some real goofballs are claiming that it was caused by a "direct energy weapons", which they also claim the last devastating California fires were.

It's scary to realize that people who believe something so idiotic have the right to vote.

Lil Tay is not dead.

I'd never heard of Lil Tay, aka Tay Tian, aka Claire Hope, aka Claire Eileen Qi Hope, but this line from her Wikipedia entry says a lot:

Tay's father and manager sought for Tay to become more focused on professionalism, suggesting a music career for her, though her mother and half-brother encouraged her to continue her original boastful character.

Keep in mind, she hit the music scene as a foul-mouthed rapper at age 9.

That's frankly sick, and not "sick" in the good pop culture lexicology way.  Her parents deserve a dope slap for letting that happen in the first place.

Whatever her legitimate name is, her story illustrates the poverty of values in the Western World.  Her parents were simply shacked up over a prolonged time, never married.  At some point, they separated and shared custody of the child.  Somehow, they allowed her to enter into the world of hip hop, which is marked for its celebration of criminal culture and high death rate. That made the stories of her death seem pretty credible.  Hardly a week goes by without some hip hop artist with a made up name dying young, in all the ways that tragic young deaths occur.  Just this week, it might be noted, one such artist was sentenced for shooting another, the victim of the shooting being Megan Thee Stallion (yes, that's a made up name).

When it was revealed she wasn't dead, I wondered if it was a PR stunt.  I'ts being claimed her social medial was hacked.  I see I'm not the only one who was speculating on the stunt possibilities, however.

Regarding Tay, even at age 9 to 14 she's an interesting example of a certain public pseudonym phenomenon.

Entertainers have always affected false names, often due to being required to do so by reporters.  Actors with Jewish names, for example, almost had to take another name early on. Paul Newman, an exception to so many rules in the acting community, is notable here as his real name actually was Paul Newman.

That's pretty much stopped as cultural prejudice of that type diminished.  A peculiar modern phenomenon has been people, particularly women, of mixed Asian and Euro-American heritage adopting their Asian mother's surname as a stage name.  It seems clear enough that Chinese American Tay was given the name at birth of Claire Eileen Qi Hope, i.e., Clair Hope, a pretty generic European name, and when she was drop-kicked into hip hop she became Tay Tian, or at least around there somewhere she did, taking her mother's last name. Priscilla Natalie Hartranft, a Korean American, took her mother's name Ahn, becoming Priscialla Ahn for the stage.  The surprising exception is the very successful Michelle Zauner (Michelle Chongmi Zauner) a Korean American born in Korea, who has kept her given name.  Zauner is the front for Japanese Breakfast, which is eclectically named, however, as Koreans are not particularly fond of hte Japanese.

I guess that takes us to Asian Pop, or maybe K Pop.  It's bad, but seems huge.  I don't know why.  Like a lot of Japanese group, K Pop tends to be very Kwaaii

But not all Japanese music actually is:

While I should not note it, by the way, I'm going to note it anyhow.  And what I'm going to note is that the children of European ethnicity people and Asian ethnicity people look very Asian as a rule.

It's simply an observation. But as a genetic observation, the genes that contribute to appearance are obviously dominant for the contributing Asian partner.

When I was in college, I knew a student whose father was British and mother Japanese.  He looked very Japanese.  Zauner looks Korean (and yes, I've been to Korea).  Ahn also looks Korean, and Tay looks Chinese.  This is merely an observation.

Last Edition:

Cliffnotes of the Zeitgeist. XLVIII. Library withdrawals.

Friday, August 25, 2023

Saturday, August 25, 1923. Involuntary population exchanges.

The Greek government ratified the Convention Concerning the Exchange of Greek and Turkish Populations, following the Turkish ratification two days prior.

1.5 million Orthodox Christians from Turkey were accordingly involuntarily sent to Greece and 500,000 Greek Muslims involuntarily sent to Turkey.

Violence broke out in Carnegie Pennsylvania when 10,000 Ku Klux Klansman held a rally on a nearby hill and moved towards the heavily Catholic town.  Town residents threw rocks and ultimately a Klansman was shot dead.

Sometimes missed, the Klan was not only racist, but nativist, and anti-Catholic.

Memories of Klan violence still echo in Carnegie today


Germany put workers on the gold basis rate in an attempt to stem inflation.

The government was trying to stave off coal labor problems again.


And a lecturer declared Woodrow Wilson's idealism too advanced for the world.

Tuesday, August 8, 2023

Subsidiarity Economics. The times more or less locally, Part XIV. And now back to our regularly scheduled programming.

 


June 5, 2023

Saudi Arabia is cutting its petroleum production by 1M barrels a day.

June 6, 2023

Ukrainian wheat prices have jumped.

June 9, 2023

Wyoming will divest itself of investments in China.

June 22, 2023

Ground was broken yesterday, after a decade and a half was expended on permitting on the Trans West Transmission project.  The event took place near Sinclair.\

June 27, 2023

Ford Motors is laying off salaried workers and engineers in order to save costs.

June 28, 2023

WYDOT approved a grant to Jackson to use Federal money to purchase EV buses.

June 29, 2023

Walgreens is closing 150 stores in the U.S.

In a tragedy, National Geographic magazine laid off its last remaining staff writers.

The magazine has been independent of the National Geographic Society since 2015, when it was sold to Fox.

Wyoming and Colorado Sign MOU Regarding Direct Air Capture

MOU outlines commitment to exploring direct air carbon dioxide capture (DAC) industry development

BOULDER, Colo.  – The State of Wyoming and State of Colorado announced today that they have signed a Memorandum of Understanding (MOU) regarding direct air capture (DAC) activity and development. The bipartisan inter-state agreement will focus on the DAC industry’s potential to complement existing and emerging industries and increase jobs and economic development in both states while simultaneously reducing carbon dioxide in the atmosphere. Governors Mark Gordon and Jared Polis announced the news during the Western Governor Association meeting today in Boulder, Colorado.

Direct Air Capture is a method of carbon dioxide removal (CDR) in which CO2 is removed from the air and then sequestered and stored to produce high-quality carbon removal credits or used for industrial applications, such as enhanced oil recovery or as a chemical feedstock for other products. The federal government has established several significant incentives and competitive grant opportunities to test and scale direct air capture technologies and projects. The mountain west is uniquely positioned to lead on these efforts, and this bipartisan agreement represents the first such multistate partnership in the county. 

The MOU outlines the partnership between the states through potential collaborations such as: applying for grants, identifying necessary infrastructure, defining carbon removal measurement standards, analyzing atmospheric CDR markets and their growth opportunities, identifying a process for resolving issues with cross-border CO2 sequestration, developing a commercialization pipeline for nascent technologies, and ensuring that local, tribal, and state stakeholders are empowered participants in shaping the future of this innovative technology and its significant economic opportunity. 

“Wyoming is a longtime leader in carbon management practices and policy,” said Wyoming Governor Mark Gordon. “We believe direct air capture could complement efforts for point-source carbon capture and the related infrastructure. Colorado and Wyoming each have pieces of the puzzle necessary to develop a carbon removal market and industry. Together, we have a powerful combination of assets, infrastructure, policy, markets, people, geology and mindsets that are needed to accelerate the development of the industry. This agreement focuses on working together on the most important questions related to DAC, including measurement standards that work to create more transparency in markets and benefits to communities.”

“This exciting bipartisan partnership builds upon our nation-leading work in Colorado to achieve 100% renewable energy by 2040 while adding good-paying jobs. I am proud to partner with Gov. Gordon on this innovative work that benefits both Colorado and Wyoming as we continue to find creative ideas and common-sense solutions in the fight for clean air that won’t just benefit Colorado and Wyoming, but the entire world,” said Colorado Governor Jared Polis. 

The MOU highlights the combined assets, infrastructure, policy, markets, resources and geology that make the region a strong contender for developing a direct air capture industry. Wyoming has world-class carbon capture, use and sequestration (CCUS) assets, including permanent geologic storage – in addition to existing infrastructure, manufacturing and energy workforce. Colorado has been developing a policy environment to evaluate the regulatory, economic, technological, and research opportunities in the carbon dioxide removal and direct air capture area and is home to the world’s second-largest operating DAC facility. 

This agreement builds on further regional collaboration between Wyoming and Colorado with Utah and New Mexico to develop the Western Interstates Hydrogen Hub. This existing partnership will mobilize  billions of dollars of investment in clean hydrogen infrastructure, another emerging technology to reduce pollution and continue the West’s leadership on global energy solutions.  

For more information, read the Memorandum in full.

June 30, 2023

UW is receiving a Federal grant for nuclear chemistry research.  The grant is in the amount of $300,000.

A headline:

Sriracha prices soar amid ongoing supply shortage linked to droughts

July 3, 2023

In an effort to cause prices to rise, Russia is cutting petroleum production by 500,000 bbls per day.

July 12, 2023

Inflation has fallen to 3%.  Historically, while it's perfectly possible to have even lower inflation, or deflation, that's a pretty good rate.

That we allow for government induced inflation through monetary policy is inexcusable, however.

The official aim is for 2%:

Why does the Federal Reserve aim for inflation of 2 percent over the longer run?

The Federal Open Market Committee (FOMC) judges that inflation of 2 percent over the longer run, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with the Federal Reserve’s mandate for maximum employment and price stability. When households and businesses can reasonably expect inflation to remain low and stable, they are able to make sound decisions regarding saving, borrowing, and investment, which contributes to a well-functioning economy.

For many years, inflation in the United States has run below the Federal Reserve’s 2 percent goal. It is understandable that higher prices for essential items, such as food, gasoline, and shelter, add to the burdens faced by many families, especially those struggling with lost jobs and incomes. At the same time, inflation that is too low can weaken the economy. When inflation runs well below its desired level, households and businesses will come to expect this over time, pushing expectations for inflation in the future below the Federal Reserve’s longer-run inflation goal. This can pull actual inflation even lower, resulting in a cycle of ever-lower inflation and inflation expectations.

If inflation expectations fall, interest rates would decline too. In turn, there would be less room to cut interest rates to boost employment during an economic downturn. Evidence from around the world suggests that once this problem sets in, it can be very difficult to overcome. To address this challenge, following periods when inflation has been running persistently below 2 percent, appropriate monetary policy will likely aim to achieve inflation modestly above 2 percent for some time. By seeking inflation that averages 2 percent over time, the FOMC will help to ensure longer-run inflation expectations remain well anchored at 2 percent.

1% would be better.  0 would be even better.  Very difficult to achieve.

And in actuality, with a labor demand that exceeds employment, a slight deflation, over a decade, would be nice.

July 13, 2023

A study published in Joule maintains that ending fossil fuel use will impact the net worth of only the very wealthy.

Swiss voters have voted to reach net carbon zero by 2050.

July 16, 2023

Hollywood actors and writers are on strike, something that could carry on forever as far as I'm concerned, given the overall negative affects the industry has had.

July 19, 2023

Wheat prices have jumped 8% due to Russia pulling out of the Black Sea grain shipment arrangement.

July 20, 2023

NON-ENERGY MINERALS ON PUBLIC LANDS ARE A SIGNIFICANT CONTRIBUTOR TO ECONOMIC ACTIVITY AND JOBS

July 22, 2023

Fiat Chrysler Automobiles lost its renewed legal battle seeking to keep Mahindra & Mahindra Ltd. from selling the redesigned Roxor off-road vehicle in the US.

The lawsuit claimed the designed trespass on protected elements of the Jeep.  I don't know the details of the suit, but the Roxor is pretty clearly a Jeep externally, and more particularly the old CJ-5.

July 28, 2023

Supreme Court rules in favor of Mountain Valley Pipeline  

Or;

Supreme Court rules in favor of Mountain Valley Pipeline

Thumbs Up Emoji Costs Canadian Farmer $82,000

August 3, 2023

Sales of Bud Light have fallen 10%.

August 4, 2023

Saudi Arabia extended production cuts.  U.S. oil prices are at a nine-month-high.

August 8, 2023

Two out of three of the major credit rating entities have downgraded the US rating from AAA+ to AAA. This occured to the lunacy of current American politics and the high U.S. debt.

And, locally:

Environmental Groups Lose Appeal Of Wyoming 3,500 Gas Well Project at Jonah Field

Last prior edition:

Subsidiarity Economics. The times more or less locally, Part XIII. The Economic Doomsday Clock

Thursday, May 11, 2023

Some basic economics, for economists


The simple reason being, economist grasp almost nothing about the economy and how it actually works, on a more existential level.

Including, even why the economy exists.

And politicians, speaking about the economy, don't look at the whole, but the part, as the whole isn't very satisfactory in a right/left construct.

Indeed, left wing politicians would be horrified by a real deep reform of the economy in ways that would actually work, as would right wing politicians.

Witness the latest by economist Robert Reich:

The economic message that will get Biden reelected and give Dems a majority in both Houses of Congress

Indeed, let's break them down and look at the uncomfortable truth.

The economic goal should be more jobs at higher wages. Right?

Let's start there.  That seems reasonable enough, so I'll basically concede it. But perhaps a better position would be to state that the economic goal would be more worthwhile jobs that allow for individual family independence, at middle class reasonable wages. 

Because, what's an economy for? To serve people.

It isn't really "more decent jobs at higher wages".  Indeed, it would really be all jobs at family supporting wages.  That's not really the same thing.

I don't know that Reich would disagree with that, but it's important to keep it in overall mind.  Economist tend to think that all jobs are super nifty, not matter what they are, as long as 100% of everyone who can work is working, and for good wages.  

Actual people, however, don't think that way. They want decent jobs worth doing to support themselves, and their families if they have one, and most people do.

The irony here is that the left and the right have come around to the same position on this, over the year.  It's a very Soviet, warehouse the children you unfortunately had so that everyone can work, until they are old, of course, as the Boomer run the economy and it's okay if they retire.

We continue.

Yet the Fed, corporate economists, and the GOP have turned the goal upside down — into fewer jobs and lower wages. Otherwise, they say, we’ll face more inflation.

Bob can't quite seem to grasp that unless an overheated economy is slowed down, wages erode.  And the Fed, etc., isn't trying to depress wages.  Inflation itself erodes wages.  They're trying to slow inflation in the only method known to work.

He knows that, but he has a pet thesis that is, as he would put it: 

Rubbish.

And here, several paragraphs later, is the thesis. 

The Fed has raised borrowing costs at 10 consecutive meetings, pushing its benchmark rate to over 5 percent. Yet inflation has barely budged. In April, it dropped to 4.9 percent (year-over-year) from 5 percent in March — according to Wednesday’s Labor Bureau data.

Why are the Fed’s rate hikes having so little effect?

Actually, historically, that's not bad.

An ideal inflation rate would be 0%, or quite frankly slight, perhaps 1% or 2% deflation, to recover some lost ground.  5%, however, is headed in the right direction.  3% for much of my life was regarded as basically no inflation at all, and the extremely low inflationary rates we had until COVID were simply extraordinary.

Oh, COVID, remember that? The thing that closed the ports and kept good from coming in, reminding Americans that we make nothing.

A thing like that could almost have been inflationary.

A think like that may also have served to remind Americans that some of the jobs they had left, pre COVID, were awful.  Note the big decrease in long haul truck drivers, employees in an industry that had already seen a massive departure of Americans in favor of foreign nationals, and which is effectively subsidized, as we've noted elsewhere.

It's an awful job.  It's almost as if we might want to think about doing this more efficiently.

If only private companies could be induced to ship things by rail. . . .oh wait. . . 

Anyhow, raising interest rates hasn't worked as it hasn't been high enough, that's why.  5% is a joke.  It ought to be at least 8%.

And, additionally, because this inflationary cycle is global, that's also why.

Because, left wing economist, global food prices and energy prices have risen dramatically as a former far left wing operative, now politicians, and a person with a strange relationship (listening right wing politicians) with Donald J. Trump, has invaded a neighbor resulting in the first peer to peer, large scale, conventional war since the Korean War.

That's a lot of the reason why.

But, left wing economist states:

Because inflation is not being propelled by an overheated economy. It’s being propelled by overheated profits.

Okay, I'm a distributist, and I'd favor addressing this to the element it's the truth, but it's just frankly not very true.   One basic fact is that those supposedly profiteering business are taking in money that's worth less every day.  No wonder they feel they have to take in more.

But Bob says:

So, what’s causing inflation? Corporations with enough monopoly power to raise their prices and fatten their profits — which the Fed’s rate hikes barely affect.

Okay, well then let's go to a Distributist economy and limit the number of areas business enterprises can operate the corporate business form.  That would be extremely deflationary, make for more good jobs at a wider level, and be much more stable.  It'd do a whole lot more than raising taxes, as Bob suggest, which would be most likely passed on to everyone else.

Any regular economist in favor of that?

Absolute not, as they're all really just corporate capitalist economist and favor slightly tinkering with the mechanics of things. Basically, the difference between a conservative economist and a liberal economist is the difference motor heads of the 70s exhibited on whether they were Holly Carb or Edlebrock fans.

Big whoop.

But here's another uncomfortable truth.  Let's go back to the first item.

The economic goal should be more jobs at higher wages. Right?

Part of the reason that wages rose is that during COVID there was a big decrease in immigration, legal and illegal, into the United States.

For years, economist on the left and right have claimed that immigrants take jobs that Americans won't, never mind that they take what are frankly a lot of middle class jobs in some industries.  As they didn't come in, Americans took those jobs, but demanded living wages.

Supposedly, in the economist world, immigration had no impact on inflation, or jobs, and in fact boosted the economy.  They may have boosted the economy, but its now conclusively demonstrated that they did so by depressing wages.

And this worked an injustice for the native born, including the native born poor.  This was always known at some level as it provided the fuel to the occasional riots and domestic strife at the inner city urban level.

This has also caused liberals like commentator Chuck Todd to directly claim that we're experiencing inflation as we aren't seeing immigrants come in. But what this implicitly admits is that the high American immigration rate operates to keep wages low, and that is what was depressing inflation.  Absent the high immigration levels, wages would rise to their natural level.

And that's what they've been doing.

Setting aside Donald Trump's pal, Vlad "if Czar Nikki owned I still do" Putin, part of what is going on is at attempt at wage stabilization, at American living wage levels, something that was frustrated by decades of wage erosion due to immigration.