Joe Biden Had A Deal

Progressive-Democrat President Joe Biden had a deal with Venezuela’s MFWIC, Nicolás Maduro: if Maduro would allow Maria Corina Machado, a Venezuelan opposition leader, to run in a free, unfettered election for the Venezuelan office of President, Biden would lift the oil and gas sanctions former President Donald Trump (R) had imposed over the Maduro government’s continued and rank misbehaviors.

And so it came to pass that Biden lifted those sanctions.

However.

On Thursday Venezuela’s president of the national assembly said Ms Machado won’t be allowed to run. The next day Mr Maduro’s hand-picked Supreme Court echoed that declaration, upholding the ban, with charges that she had engaged in conspiracies against the regime. The only “conspiracy” is that she opposes the regime.

Who benefits from the deal that lifted the oil sanctions? Not the US. Venezuela’s government men and women do. The People’s Republic of China does.

Either Joe Biden is incapable of matching wits with a thuggish dictator’s machinations, or he knew this would be the outcome, and he agreed the deal anyway. Either way, Joe Biden is unfit for a second term.

More Reasons to Disband

Now the Biden administration is actively seeking to undermine our friends and allies on top of destroying our energy industry.

The White House on Friday announced a temporary pause on pending decisions of exports of liquefied natural gas to non-free trade countries, until the Energy Department can factor climate change into its reviews of the projects.

Two changes (for starters) are badly needed, and these changes badly need significant majorities in the House and Senate and a Republican in the White House (which puts a premium on the elections this fall).

One of those changes is enactment of a statute giving the relevant approval authority(s) 10 calendar days in which to approve an export application or to provide a detailed explanation for denial, which explanation must have only concrete, measurable reasons, be devoid of generalities, and be publicly available NLT the 11th day. Absent such a decision, the application must be deemed approved.

The other change is the disbandment of the Department of Energy with all Department personnel returned to the private sector, not reassigned elsewhere in the Federal government. The only functions remotely worth retaining are ARPA-Energy and Science and Innovation, which should be folded into ARPA with circumscribed funding authorities.

Another change, in furtherance of the concept of the second change, is the disbandment of the Environmental Protection Agency, with its personnel also returned to the private sector, rather than reassigned within the Federal government. This agency—the managers in charge of it, along with its employees, have for too long conflated environmental protection with climate “protection,” with its cockamamy decisions exemplified by its ruling that plant food in our atmosphere—CO2—is a pollutant.

A Gen-Zer is Upset

The young woman is tired of her generation being called lazy because they—she in particular—are working 40-hour weeks, “barely getting by,” and don’t want to do that for the rest of their lives. They have other things they want to do. She then insisted that today’s economy is not the one in which prior generations started out, and Gen-Zers starting out have it hard today compared to earlier generations when we were starting out.

She has a beef in some respects.

However.

Here is what was available to this Boomer when I was just starting out.

The house I grew up in was all of 1232 square feet, compared with today’s median size of 2500 square feet. That house didn’t have central air conditioning. We were some years into it before we got a window air conditioner for our living room. Such basics as a thermostat for the furnace was a manually set mercury-based affair, not today’s programmable with its variety of part-of-day or -night or vacation settings.

We didn’t spend $250 and more per month on cable TV—it didn’t exist.

We didn’t spend $50-$100 per month on an Internet connection—there was no Internet.

We didn’t spend $80-$120 per month on cell phone service—it didn’t exist.

We didn’t drop $800 on a new cell phone—they not only didn’t exist, the phone company gave us our landline instrument as part of their POTS service. (Don’t know what that is? Welcome to my starting out world. Go look it up, if it doesn’t interfere too badly with modern priorities.)

We didn’t hire Uber or Lyft or Door-Dash or anything of that ilk—that ilk didn’t exist. We drove ourselves, or went shanks mare. And doggy to go bags were our takeout.

We didn’t have much in the way of shipping costs, other than moving our household, or the occasional order from a Sears or Montgomery Ward catalog—there was no such thing as eTail.

We couldn’t even order our books online. We used the local library, or we drove (or did that shanks mare thing) down to the local bookstores. Of course, the library or the bookstore could special order a book we wanted. By sending a letter or making a POTS call. And we could go pick up the book at the library or bookstore when it arrived.

We spent nothing on programs for our personal computers or laptops or aps for our cell phones—that kind of software programming didn’t exist, and neither did the personal computers or laptops, or cell phones to run them on. Spreadsheets? Those were paper-printed grids on which we used pencil or pen. Word processors? Manual typewriters, or pencil/pen and paper. We did have actual (hand-cranked) adding machines, though, so it wasn’t all pencil and paper.

If we wanted to talk to our neighbors, we visited them or they us. If the ones we wanted to talk with lived far away, we wrote postcards and letters. International mail was something else, with its folding envelopes on which we wrote our letters, and then folded them to become the international mail envelope to save the weight of an additional sheet of paper. Or we called long distance (haven’t heard of that? Welcome to another aspect of the modern world, which isn’t what I started out with) on our landline POTS service. International calls were both especially expensive and faint of voice on both ends. There was no concept of electronic social media.

The list goes on and on.

If Gen-Zers want to start out with costs similar to those earlier starting-out generations, they need to learn to live without all of today’s technology.

Further, regarding today:

When I finally walked out the door in retirement from my skilled professional job, I still was working 50-60 hour weeks. That schedule wasn’t universal, but it was quite common throughout those earlier start-outers’ careers. We had families to support and kids’ college to plan for. Family mattered, not personal wants. Indeed, family was central to our personal wants, and gladly so. We weren’t centered exclusively, or even primarily, on our selves.

The mom-and-pop HVAC folks who deal with my current house’s heating and air conditioning (central, mind you, today) not only work those 60-hour weeks, they work holidays, too, including Christmas. It’s the same for the plumbers, electricians, carpenters, road builders, all the trades.

One last fillip. This particular Boomer did have a somewhat easier time handling my starting out costs. I’d enlisted in the USAF, getting commissioned through my college’s ROTC. With that military career as my first, I was given structure, a place to live, and a grocery store that was a bit cheaper than the local economy grocery stores. The young woman, and others of her cohort, might think about enlisting in one or another branch of our military, whether as enlisted or as an officer. They’d be helping out their nation’s security, and they’d learn what work truly is and how rewarding it can be.

India vs PRC

The Wall Street Journal has an interesting piece comparing the People’s Republic of China’s economic future with India’s. In the second paragraph (the semi-lede?), there’s this:

The country’s population surpassed China’s last year. More than half of Indians are under 25.

A couple of graphs from the CIA World Factbook put the two nation’s population structures in sharp relief, and at this stage of the two nations’ economic development, those structures are their future.

This is the structure of India’s population (scroll down a skosh):

This is the structure of the PRC’s population (again, scroll a tad):

India’s population of new workers is growing, so the nation’s economic capacity is capable of growing. The PRC’s population of new workers is shrinking. Not only is the PRC incapable of growing very much, economically, it’s becoming and will continue to become increasingly difficult to support its old folks, even as that portion of the nation’s population continues to grow.

Bank Capital Requirements

The Federal Reserve is looking hard at increasing the amount of capital that banks must hold in the Fed’s effort to boost bank liquidity, or their ability to handle sharply increased withdrawal rates.

There is pushback against this proposal, including objections that it might make it harder for banks to lend to folks on the lower economic tiers, even that it might make American banks less competitive than foreign competitors. That last often (not always) is just political Newspeak for “be more like Europe.”

However, the problem can be preempted—or at least pushed a considerable way down the road, allowing for more thought—by doing something different that IMNSHO is a better move, anyway.

Rather than increasing capital requirements, require all banks to mark to market (semiannually? quarterly?) all of the debt instruments the banks hold in satisfaction of existing capital requirements.

Then leave that requirement in place for some period of time (5 years, say) in order to get a serious look at how well, or poorly, that requirement supports bank liquidity during economic downturns.