Monthly Archives: July 2022

In a Nutshell

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In a Wall Street Journal article on the rising price of natural gas resulting from the current spate of hot weather, there’s this regarding the broader role of natural gas prices in inflation.

Pricier natural gas adds not just to the cost of dialing down the thermostat but also to that for making fertilizer, steel, cement, plastic, and glass.

And, through that fertilizer price increase, the cost of food—directly in the cost of wheat-, corn-, soya bean-based foodstuffs, and indirectly in the cost of beef, chicken, and other meat animals that are fed these plants.

And, through corn’s role in ethanol production, the cost of fuel.

Which is pretty much the full reach of our economy.

The inflation resulting from limits on natural gas production also results from similar limits on oil and coal production.

But hey, we can all just go out and buy electric cars….

“Misquote”

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US District Judge Charles Atchley, Jr, issued a preliminary injunction barring the Federal government from enforcing President Joe Biden’s (D) Executive Order and his Department of Education’s “guidance” equating sex and gender identity that

unilaterally redefin[ed] federal law to not only prohibit male-female distinctions in school sports, restrooms, and locker rooms, but also compel employers to use employees’ preferred pronouns

The Biden administration, further, is threatening to withhold “substantial federal funding” if institutions did not comply.

In his ruling, Atchley

…chided the feds for ignoring the explicit text of the Bostock decision [Bostock v Clayton County, decided in 2020] even while citing it for support, noting the majority “explicitly refused to decide” the issue of bathrooms, locker rooms, and dress codes under Title VII. The guidance documents “advance new interpretations” of two federal laws and “impose new legal obligations on regulated entities.”

The judge was being generous in stopping there regarding ignoring the Supreme Court’s actual ruling. Biden and Miguel Cardona, Secretary of the DoEd, knew what they were doing, and they did it anyway. They easily could have been held in contempt of court for their deliberate distortion of the ruling and sanctioned accordingly.

Damping the Benefits of Globalization

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In one of the few sensible pushes members of the Biden administration is making, Secretary of the Treasury Janet Yellen, in her meetings in Seoul, Republic of Korea, pushed for the US and our friends and allies to shift away from dependency on the People’s Republic of China for supplies and instead to friend-shore the supply chain: get the supply components and raw materials either domestically or through trade with friends and allies.

Friend-shoring is about deepening relationships and diversifying our supply chains with a greater number of trusted trading partners. The purpose is to lower risks for our economy and theirs[.]

There are, of course, criticizers of such a change in emphasis.

…some economists have cautioned that such a shift could damp the benefits of globalization and lead to higher prices.

But this is to misunderstand, or to ignore, the real risks to globalization: dependency on our enemies for Critical Items in our supply chain. The PRC, for instance, already has attempted to corner the market on rare earths, and it already has attempted to use that monopoly to coerce Japan by embargoing rare earth sales and shipments to them. Russia is already restricting supplies of natural gas to Europe.

Walking away from the PRC, and Russia, and our other enemies on supply chain matters may or may not lead to higher prices; most likely, higher prices will be limited to the period of transition away from our enemies.

The higher cost, though, from continuing dependency on enemy nations is to our national security and to the uncertainty premium resulting from those enemies engaging in restricting or outright embargoing critical supply items in order to coerce.

Where in the World is Joe Biden?

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Again?

Ukraine’s First Lady, Olena Zelenska is in DC this week. On her itinerary was last Monday’s meeting with SecState Antony Blinken; Tuesday’s (scheduled as I write this Tuesday morning) meeting with the US’ First Lady, Jill Biden; and an address to Congress today.

Absent from her itinerary is a meeting with the man who occasionally sits in the Oval Office, Joe Biden (D).

Biden refuses to go to Kyiv to meet with Ukraine’s President Volodymyr Zelenskyy or any other of Ukraine’s government officials, and now that Ukraine has come to DC, he still won’t meet Ukrainian government officials, not even unofficial officials like First Lady Zelenska? All he’s done is give her a photo op on the White House South Lawn as though he was a monarch granting a boon.

What is it that Biden is so desperate to avoid?

Now It’s Mandatory

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House Speaker Nancy Pelosi (D, CA) is planning to visit the Republic of China next month. Zhao Lijian, Deputy Director of the People’s Republic of China’s Foreign Ministry Information Department, speaking for the PRC’s Foreign Minister demurred.

It [the visit] will have a severe negative impact on the political foundation of China-US relations, and send a gravely wrong signal to “Taiwan independence” separatist forces. China firmly opposes such a visit.

That pretty well settles the matter. Now it’s critical that Pelosi not only travel to the Republic of China, she also must meet with RoC President Tsai Ing-wen, Premier Su Tseng-chang, and the President of the Legislative Yuan, Yu Shyi-kun.

Maybe meet with National Defense Minister Chiu Kuo-cheng, too, although matters of national defense are outside Pelosi’s portfolio.