Biden Admin Touted EV Charging Company To Support Climate Agenda. Now, Its Stock Is Tanking thumbnail

Biden Admin Touted EV Charging Company To Support Climate Agenda. Now, Its Stock Is Tanking

By The Daily Caller

The Biden administration held up the electric vehicle (EV) charging company ChargePoint to support the president’s climate agenda on several occasions. Now, the company is facing considerable economic and legal headwinds.

In February, the White House highlighted ChargePoint’s deals with other companies as proof that the administration’s “actions on EVs have spurred network operators to accelerate the buildout of coast-to-coast EV charging networks.” However, in the nearly ten months since, the company’s stock price has lost significant value, ChargePoint CEO Pasquale Romano has stepped down from his post and the company now faces a class action lawsuit.

The White House promoted ChargePoint’s partnership with Mercedes-Benz and MN8 Energy “to deploy over 400 charging hubs with more than 2,500 publicly accessible (direct current) fast charging ports across the U.S. and Canada,” as well as the company’s partnership with Volvo and Starbucks “to deploy 60 (direct current) fast chargers at up to 15 locations along the 1,350-mile pilot route between Seattle and Denver to be completed by summer 2023.” Additionally, the White House touted ChargePoint’s agreement with SMTC Corporation to expand charger manufacturing capacity in California. 

Sen. Stabenow (D-MI): “I drove my electric vehicle from Michigan to here last weekend and went by every gas station and it didn’t matter how high it was.”

Just wait until she finds out how electricity is produced pic.twitter.com/OS5TN78gbz

— Daily Caller (@DailyCaller) June 7, 2022

The White House also commended ChargePoint for “[investing] in equitable workforce development and [training] a diverse pipeline of  skilled workers to build our nation’s infrastructure” in a November 2022 press release focusing on examples of “major progress” made by President Joe Biden’s climate agenda. The administration also mentioned the company in several other press releases recapping positive developments in the EV charging industry, including the one from February.

ChargePoint operates the largest public network of EV charging stations in the U.S. as of August, according to Edmunds.

In August 2022, several months before the White House issued the February press release, Biden appointed Romano to the National Infrastructure Advisory Council, a group of private sector and state or local government officials tasked with advising Biden on how to best reduce risks to the nation’s critical infrastructure. Despite the appointment, Romano stepped down as CEO on Nov. 16, as did CFO Rex Jackson, according to Bloomberg News. Between the day before the announcement that Romano was leaving and the day after, the company’s stock lost nearly 40% of its value, according to data from Google Finance.

The company’s stock price peaked at $46.10 per share on Dec. 24, 2020, and it stood at $13.38 per share on Feb. 15, 2023, the most recent that the White House mentioned the company in writing. As of Tuesday, it is trading at around $2.24 per share, according to data from Google Finance. The share price is down by nearly 75% year-to-date.

The company’s third quarter financial filings also show the company’s revenue was 12% lower than it was in last year’s third quarter. ChargePoint posted a net loss of $158.2 million for the quarter, up from the $84.5 million the company lost during last year’s third quarter.

There is also a class action lawsuit against the firm, which alleges that the company and some of its top executives violated the Securities Exchange Act of 1934. Specifically, the suit, which covers the time between June 1 and Nov. 16, alleges that the company’s share price became artificially inflated because of false and misleading statements made by company executives. The lawsuit alleges that the company was experiencing elevated component costs and supply overruns, factors that were likely to decrease the company’s profitability by forcing costly impairments.

The company’s supply chain issues ultimately forced it to announce a $42 million impairment, or reduction, to the value of its inventory in November, according to its third quarter filings.

“Based on recent investor interactions and multiple negative datapoints across the EV value chain, sentiment in the EV charging space has been muted and we are not surprised that ChargePoint F3Q (third-quarter) revenues would track below expectations,” JPMorgan analysts, led by Bill Peterson, wrote in a November investor note, according to Reuters. “However, the magnitude of the miss and the deceleration late in the quarter doesn’t bode well for near-term fundamentals for ChargePoint or the broader EV value chain in general, and EV charging specifically.”

ChargePoint’s story shares some characteristics with that of Li-Cycle, a battery recycling company with which the administration reached a conditional commitment for a $375 million loan package in February. Li-Cycle had cleared the Department of Energy’s (DOE) due diligence process while it was accused of defrauding its investors, and the company’s stock price has since tanked.

Charging infrastructure remains a key obstacle to the Biden administration’s wider EV agenda, which aims to have 50% of all new car sales be EVs by 2030. Most charging stations are densely concentrated in more densely-populated, coastal regions of the U.S., according to the DOE.

The Biden administration has set billions of dollars aside to help the EV industry build out a nationwide charging network. The administration has committed billions to subsidize EV manufacturing infrastructure, and also to provide consumer tax credits to increase the appeal of the pricier vehicles.

However, auto manufacturers are mostly losing considerable amounts of money on their EV product lines, consumer demand is not reaching projected levels and auto executives are backing off some of their short-term production targets.

The White House, ChargePoint and the DOE all did not respond immediately to requests for comment.

AUTHOR

NICK POPE

Contributor.

RELATED ARTICLE: Biden’s EV Push Undermined By Scarce And Faulty Charging Stations

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.


All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Argentina Returning to Free Market Capitalism! thumbnail

Argentina Returning to Free Market Capitalism!

By Geoff Ross

The nation of Argentina here in beautiful South America is just about bankrupt. After years of insane out of control socialist deficit spending the people of Argentina finally had enough of this tax payer fleecing.

So they elected a conservative libertarian capitalist entrepreneur as their president. His name President , considered as South Americas Donald Trump.

His first action was to announce massive spending cuts to get the out of control inflation under control.

The new Economy Minister Luis Caputo stated “there is no more money.”  Thus when president Zelensky of Ukraine recently visited Argentina, he was told to put his hands back in his pockets and look for handouts elsewhere.

The Argentinian government has now commenced spending cuts equivalent to 2.9% of its gross domestic product.

The socialists and the communists In Argentina will soon be cut off from their former government handouts and instead will now have to work for a living.

Also, massive cuts to Argentinian energy companies (who are also used to getting free tax payer money) they too will be cut from the handout loop saving another 0.5% of GDP.

Plus, massive tax payer reductions to the government transportation system will be implemented saving another 0.2%, according to the government’s estimates.

Much like Amtrak in the USA that fleece millions of dollars from us tax payers in the USA while providing a crappy service. Time to privatize.

President Milei’s economic advisers also stated they will eliminate half of the government ministries, like the do nothing ministry of education and commerce and labor, cutting tax payer cash transfers to provinces and totally suspending public works.

The International Monetary Fund (IMF) is praising this swift and decisive leadership thus ending the socialist sucking machine draining tax payer money from the citizens wallets of Argentina.

The IMF said – “Their decisive implementation will help stabilize the economy and set the basis for more sustainable and private-sector led growth,”

Inflation is climbing at more than 140% so it’s time to cut off the socialists from their free tax payer spending spree and block the out of control spending insanity for the sake of future generations.

In my opinion and don’t be surprised If President Milei totally scraps Argentines currency altogether, and replaces it with the U.S. dollar.

The Venezuelan Bolivar is also totally worthless after the Chavez/Maduro Communist dictatorship their decimated its economy and they too now only use U.S. dollars.

The United States is following the same inflationary out of control spending path as Venezuela. The President of Argentina saw the same thing happening to his country and has stepped in to make Argentina great again.

In November 2024 Trump will be re-elected and will block the Communist Socialist UniParty from destroying our free market capitalist republic here in North America. No doubt Trump will be making friends very quickly with President Milei.

©2023. Geoff Ross. All rights reserved.

Arizona Chamber Writes Biden Admin Warning About EPA Proposal thumbnail

Arizona Chamber Writes Biden Admin Warning About EPA Proposal

By Cameron Arcand

The Arizona Chamber of Commerce and Industry is one of the many organizations that signed a letter to the Biden administration asking them not to raise the standards for particulate matter.

The letter includes signatures from leaders all over the country, including many manufacturing, mining, and oil and gas associations, asking them not to implement the proposal that’s being looked into by the White House. The opponents say it could make certain projects harder to abide by environmental standards and have the potential to harm economic development.

“The undersigned state and regional associations representing sectors and industries across the U.S. economy urge you to maintain the existing National Ambient Air Quality Standards for particulate matter (PM2.5),” the letter states.

“This proposal could put nearly 40% of the U.S. population in areas of nonattainment, risking jobs and livelihoods across the nation and making it significantly more difficult to obtain permits to build new factories, bridges, and roads that will power our economic growth,” the letter continues. “Implementation of the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act have the potential to infuse substantial investments into our states and communities, but all of that is now threatened by the permitting restrictions that would flow from this proposal.”

The Center Square reported in May that Phoenix could be one of the cities likely impacted by the proposed standard increase, as the city is already considered to be a “nonattainment” area for both PM10 and ozone, according to the Arizona Department of Environmental Quality website.  

“The best example: despite hosting some of the nation’s fastest population and economic growth over the past three decades, Arizona’s overall air quality has actually improved. We fear the EPA’s proposal to more stringently regulate fine particulates known as PM2.5 will create dubious public health and environmental benefits, but will cost jobs and hurt employers at a time they can least afford it. This EPA plan needs to return to the drawing board,” Danny Seiden, president and CEO of the Arizona Chamber of Commerce and Industry, told The Center Square in a statement at the time.

Even though they oppose the possible increase, the signers of the letter told Jeff Zients, who is the White House Chief of Staff, that they want to keep the current standards.

“We strongly encourage your administration to maintain the existing standards, which will ensure that we remain among the countries with the cleanest air in the world while also supporting much-needed economic growth,” the letter states. 

*****

This article was published by the Center Square and is reproduced with permission.

Image Credit: Shutterstock

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

Meta Will Censor Adult Detransitioners but Not Pornographic Content for Minors thumbnail

Meta Will Censor Adult Detransitioners but Not Pornographic Content for Minors

By Family Research Council

In September, detransitioner Chloe Cole, widely known for her testimony about the dangers of transgender operations, was censored on Instagram so that her content would not appear to non-followers in any capacity. As the warning she received stated, “Your account and content won’t appear in places like Explore, Search, Suggested Users, Reels, and Feed Recommendations.”

For several years, conservatives have been skeptical of censorship from social media platforms, of which Cole is the most recent victim. In a 2020 Pew Research poll, results showed most Americans share this concern. Out of 4,708 U.S. adults, the survey stated “roughly three-quarters of U.S. adults say it is very (37%) or somewhat (36%) likely that social media sites intentionally censor political viewpoints that they find objectionable. Just 25% believe this is not likely the case.”

While Republicans remain the most skeptical about social media censorship, other concerns are making their way to court. Investigators in New Mexico filed a lawsuit after they created minor profiles on Facebook and Instagram that were, as the suit stated, “exposed to nudity, pornographic videos, and sexually suggestive images of young girls.” Additionally, as The Epoch Times reported, when the investigators used the fake profiles to report pornographic videos sent to it, Meta “said it investigated and found no violation of its community standards.”

Additionally, “Meta also offered the profile a professional account, which would enable her to make money. Meta would provide information on her audience, which was largely male and adult.” Although, its not just the New Mexico investigators that are showing concern.

A bipartisan letter addressed to Mark Zuckerburg, CEO of Meta, from the United States Senate disclosed “deep concerns about Meta’s apparent failure to comply with the Children’s Online Privacy Protection Act (COPPA), as alleged in a recently unsealed complaint filed by 33 states against [the] company.” The letter detailed the ways in which “Meta has not even tried to obtain informed parental consent to continue collecting data on those kids — in direct violation of COPPA.”

COPPA is the only online federal privacy law for children, and the states’ complaints emphasized in the letter are based on substantial evidence that Meta has and continues to violate it. The letter concluded, “Meta’s goal here is clear: To do everything in its power to avoid gaining actual knowledge — or, at least, create the perception that it never gained actual knowledge — that a user is a child. In so doing, Meta sought both to continue monetizing that child’s account and establish a lucrative, long-term relationship with them.”

Chris Gacek, senior fellow for Regulatory Affairs at Family Research Council, commented to The Washington Stand, “It’s almost beyond imagining that” Meta is not aware of the exploitation of minors occurring on its platforms. He explained how, in the last couple years, Elon Musk has managed to take control of Twitter (now X) and clean up a fair amount of the obscenity that was on the app. As far as Gacek is concerned, if Musk is accomplishing this, Meta could do the same. “They can clean this up if they want to,” he said. “So if it’s there, they want it to be there.”

Gacek noted that part of Meta’s indifference about these accounts and the explicit content is because it’s a “mechanism by which they’re making money.” But there is also “this sort of an ideological contour map,” he added, that can contribute even more to the equation. As Gacek put it, what this investigation seems to navigate is that “Chloe Cole can’t be seen, but the pervs can.”

He concluded, “There [could be] hundreds of millions of people watching” or coming across “this stuff, right? I can’t believe there aren’t more people reporting these things.”

AUTHOR

Sarah Holliday

Sarah Holliday is a reporter at The Washington Stand.

EDITORS NOTE: This Washington Stand column is republished with permission. All rights reserved. ©2023 Family Research Council.


The Washington Stand is Family Research Council’s outlet for news and commentary from a biblical worldview. The Washington Stand is based in Washington, D.C. and is published by FRC, whose mission is to advance faith, family, and freedom in public policy and the culture from a biblical worldview. We invite you to stand with us by partnering with FRC.

Pima County Is to Prosperity What N. Korea Is to Democracy thumbnail

Pima County Is to Prosperity What N. Korea Is to Democracy

By Craig J. Cantoni

The county’s 13-point Prosperity Initiative won’t reduce the poverty that it and the City of Tucson have caused.

The Pima County Board of Supervisors recently passed a 13-point Prosperity Initiative to increase prosperity and reduce poverty and its effects in metro Tucson. The initiative calls for the county to work with the City of Tucson and the small and essentially powerless surrounding suburbs.

I should be delighted at the news. When my wife and I moved to Tucson six years ago for family reasons from metro Phoenix, I was appalled by the metropolis’ poverty, rundown conditions, high crime, under-performing K-12 schools, and apparent aversion to high-wage industry. With the help of a local radio host, I formed a nonpartisan group with the objective of recommending ways to increase prosperity and reduce poverty.

Silly me. I had underestimated the forces wanting to maintain the status quo and had overestimated my abilities. The overestimation came from my success as an activist and columnist in metro Phoenix, and, before that, my success on the Jersey side of metro New York, where I was honored by a major newspaper on its Sunday front page as a Community Service Volunteer of the Year. If I could bring about change in the tough, corrupt, and highly populated metropolis of New York, my foolish thinking went, I could certainly do the same in a metropolis of 1.08 million people.

Overcoming the Mafia in New Jersey is easier than overcoming the hidebound establishment in metro Tucson, where the City of Tucson and Pima County have a political and jurisdictional monopoly covering over 88 percent of the metropolis and thus don’t face any political or municipal competition of note. Making the situation worse, over a third of metro Tucson is the unincorporated county, including the wealthiest part known as the Foothills.

The unincorporated third is an amorphous blob without a center, a defining character, or the public amenities and services that only an incorporated municipality can provide. In the roughly 30 square miles of the Foothills, for example, there is not one public park, community center, or ball field, other than ball fields at local schools. However, there is an abundance of crumbling streets, lousy landscaping of public rights-of-way, illegal and tacky signage, and litter and trash.

Regarding litter, my wife and I pick up litter at our advanced ages on our daily five-mile walks, because the county doesn’t pick it up. Likewise, in a reflection of a lack of civic pride, litter is also not picked up by owners of properties that front major streets, including businesses, gated communities, resorts, and exclusive golf courses, especially those patronized by snowbirds who don’t care about the larger community. Thank goodness that some civic-minded groups try to compensate for the slackers.

Naturally, the situation is far worse in the many high-poverty areas of the metropolis, especially the high-poverty areas of the City of Tucson, which has a poverty rate of twice the national average, as well as all of the human misery, crime, and homelessness that come with poverty.

This tragedy has been inflicted for decades on the metropolis by the establishment, not necessarily out of any meanness, maliciousness, or selfishness, although, as I have documented elsewhere, the public-sector part of the establishment is well-off relative to the typical Tucson household. The causes are hubris, the aforementioned political monopoly, and a provincialism that blinds the establishment to how the metropolis compares to other Sunbelt metropolises and how it appears to visiting corporate executives from other parts of the country.

I’m just as guilty of being blind to reality. I’ve written scores of policy papers showing how Tucson compares to other cities on key measures and aesthetics, not realizing that the local establishment doesn’t want to know. Judging by attitudes, policies, and results, the establishment seems to want Tucson to be an impoverished backwater like Albuquerque instead of a dynamic economy like Phoenix or a rising economy like San Antonio.

Speaking of San Antonio, long ago I lived for five years in a barrio of the Alamo City. The progress that the city has made since then is admirable and puts Tucson to shame.

Likewise, corporations are making a staggering amount of capital investments in metro Phoenix. In the semiconductor industry alone, a European semiconductor company just announced the building of a $300 million research facility in Scottsdale. The week before, another semiconductor company announced a $2 billion facility in Peoria. And last year, the Intel Corporation and Taiwan Semiconductor Manufacturing Company made separate announcements about the building of new fabs in metro Phoenix, for a total investment between them of approximately $20 billion.

By contrast, recent Tucson business news was about Starbucks opening a location in downtown Tucson.

With respect to downtown, it remains to be seen whether the ongoing redevelopment of downtown Tucson will attract high-wage businesses to the metropolis instead of low-wage restaurants, bars, and coffee shops. It has been seen, though, that the downtown redevelopment district squandered approximately $200 million years ago at the start and had to be rescued by the state. Based on the median household income in the City of Tucson, the $200 million is equal to the yearly income of about 4,000 families. Squandering the income of 4,000 families doesn’t seem like a good way of increasing prosperity and reducing poverty.

To be fair, Tucson is affected by demographics and immigration largely outside of its control. But so are San Antonio and Phoenix. All three have large populations of Latino migrants, a high percentage of whom lag in skills and education, as was the case for my immigrant Italian grandparents and my working-class parents. But it is a truism that the more vibrant the local economy, the more opportunities for advancement. It follows, then, that Tucson lags behind the other two cities in opportunities.

That’s also true for graduates of the Tucson-based University of Arizona. There aren’t many opportunities for them in Tucson.

This situation is exacerbated by the University of Arizona being a laggard in spinning off new businesses and industries in Tucson, although it is a research institution. Arizona State University in the Phoenix suburb of Tempe is not a research institution, per se, but has contributed a lot more to the Phoenix economy.

To make matters worse, the University of Arizona is having a financial crisis due to mismanagement and a university president who doesn’t seem to have the vision or the political and organizational skills of the president of ASU.

In any event, Pima County’s Prosperity Initiative doesn’t mention any of these points. Instead, speaking in generalities, platitudes, and clichés, it describes a typical smorgasbord of progressive wishes, some of which are at cross-purposes. For example, one wish is to increase housing availability and affordability, but another is to make it more difficult for landlords to evict tenants, which would work as a disincentive for the building of rental units.

See for yourself. Here’s a link to the initiative:

https://www.pima.gov/3137/The-Prosperity-Initiative

Warning: Don’t read it if you’re allergic to pabulum.

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

Argentina Agonistes: The Separation of Money and State thumbnail

Argentina Agonistes: The Separation of Money and State

By Michael Munger

It is interesting to think about what future generations will look back on and think, “How barbaric and backward. Did those people really believe _______?” From our current vantage point, for example, we look back on religion that way. For thousands of years, church and state were symbiotically linked, but many now see the separation of church and state as being a necessary condition for a stable and liberal government.

What’s next? Argentina has a new “libertarian” president, Javier Milei. A big part of Milei’s platform was “dollarization,” or the abandoning of the valueless peso in favor of having accounts and assets recoded as being valued in United States dollars (USD).

It now appears, however, that when Milei takes office on December 10 he will not pursue full dollarization, certainly not immediately and perhaps not at all. Argentina is in many ways an advanced nation with a moronic government, saddled with the ditzy wishful thinking of Peronism. Argentina has a tax collection/compliance rate of less than 40 percent, more characteristic of a third world nation. As Leonidas Zalmanovitz pointed out last week, the real problem is a consensus on reducing inflation, not fiddling with rules.

Still, rules and institutions matter. Combining the “generosity” of Peronism, albeit generosity with the money of others, and the inability to collect taxes, has meant that the government has systematically gutted the value of the already threadbare peso. That issue, more than any other, is the reason that an outsider such as Milei was able to win by nearly 20 percent of the vote, a landslide rejection of orthodoxy. It is worth taking a step back and considering the sources of these “Argentina Agonistes,” and thinking about Milei’s core promise: the separation of money and state. I wonder if future generations will look back and wonder, “what took them so long?”

Basics of Public Finance

As a private citizen, if I want to spend more than my income, I have two choices:

  1. I can find more income, by working more hours or finding a higher-paying job; or
  2. I can borrow money, assuming I can find someone willing to loan me the cash at an interest rate I am willing to pay.

If I fail to repay the loan, including the contracted interest, then I will likely forego future opportunities to use the “borrow” option, because I will have revealed the fact that I cannot be trusted to repay the loan.

Governments that want to spend more than their revenue have something analogous to the first two choices:

  1. they can raise taxes, or
  2. they can sell bonds or promise to repay a loan in the future but they can also simply:
  3. print piles of the national currency, and then spend that.

As many heterodox theorists have pointed out, #3 is not actually all that different from #2. Fiat currencies are just a zero-coupon bond, which promise that the state will pay you one unit of that currency if you want to liquidate it. Unsurprisingly, just as with standard bonds, you can take a capital loss if you hold currency-bonds during a period of inflation.

And there is another relationship: Just as the failure of a private citizen to pay back a debt results in an inability to borrow, the failure of a state to maintain the value of currency results in an unwillingness to accept that currency as payment face value. If you want to pay debts using that currency, creditors will require a discount, meaning that more of the currency will be required to offset the inflation.

The “solution” is for the state to bind its hands somehow, to promise credibly that it will never use option #3 to finance spending in excess of revenue. That is the explicit rationale for creating an “independent” central bank, a clerisy of monetary shamans whose ritualized sacrament is maintaining the value of the currency. The problem is that political officials are sorely tempted to press the shamans for inflation to escape the debt burden that results from using state spending to buy votes in every election, or to bail out the banks that have taken on excessive portfolio risk as a way of raising their stock price.

There are many critiques of capitalism that object to such short-term profit maximization of corporate CEOs paid in stock options. But politicians may be worse: The political time horizon never extends beyond the next “most important election of our lives.” For politicians in the US, the longest they ever look ahead is 729 days, and that’s only on the Wednesday after an election.

Argentina has used deficit financing strategy #3 — print piles of money — in a way that is not innovative, but which is quite effective. In the short run, the creation of money allows the government to “sell” peso-bonds at face value, recognizing that the promise to accept the pesos later will be made much cheaper by the sharp decline in the capital value of those pesos because of inflation.

Inflation has been the very lifeblood of Peronism. From 1980 to 2022, the average inflation rate exceeded 200 percent. It’s not hard to see how this works as a debt repayment strategy: If I borrow $1000 from you, and then pay you back $1000 in a year, 200 percent inflation means that I am repaying an equivalent value of only $250, having stolen $750. Argentina can often bilk international agencies of such loans, but by and large, politicians have chosen instead to cut out the middleman and simply steal the value of their own currency from their own citizens. Let’s follow the money.

Why MONEY?

We all learned that monetary policy — management of the currency — is separate from fiscal policy — the policies of taxing and spending.

In fact, the argument for an activist central bank assumes that there are two distinct entities, something like a “Treasury Department” which manages markets in government debt, and something like a “Federal Reserve Open Market Committee” which manages the money supply. Obviously, the two activities can be connected,

But that division of jurisdictions can be collapsed. The US tried to play it straight (sort of), by having the Treasury Department “sell” new debt to finance the deficit, but with the understanding that much of the new debt would be purchased directly by the Fed, using its bottomless checking account. This was, and is, “new money,” meaning that the government was buying its own debt with printed money.

As a result, the “balance sheet” of the Fed, the list of assets it has “purchased” with fiat money, went from about $1 trillion in 2007 to nearly $9 trillion in 2022. Far and away most of those assets are I.O.U.s, promises to borrow even more money in the future to pay off the T-bills that the Fed bought to finance current deficits.

Argentina didn’t have the patience for that kind of financial kabuki dance. They cut out the middleman and just issued new “debt” directly in the form of that specialized bond called pesos. The separation between fiscal and monetary policy evaporated. If someone asked the endless series of Peronist regimes, “How many pesos do you have?” the answer was always just, “How many do you need?” As a result, the Argentine peso has lost 93 percent of its value in just the past 4 years. (Please read that sentence again, I can wait. Seriously: 93 percent).

In a terrific Econtalk a year ago, Devon Zuegel described the problems of managing even basic transactions in a hyperinflating environment. Anyone who could manage to carry out transactions using dollars always did so; holding pesos was little different from simply setting your wealth on fire. But actually “dollarizing,” as Ecuador, El Salvador, and Panama have done, requires a substantial cash reserve in dollars to manage liquidity. Argentina, of course, does not have that, at least not in government hands. So, the campaign promise of Javier Milei to dollarize is not feasible.

The interesting thing is that Milei is not actually a fan of dollars, precisely because the US currency is also managed by the politicized discretion of a central bank. His goal seems to be a change in the very economic constitution of Argentina, forcing a permanent separation of money and state. The advantage of dollars, in the near term at least, is that there is little that Argentina can do to affect the value of dollars, or to create new dollars in a way that will allow it to “repay” debts by depreciating the value of those debts. Thus, dollarization is not a full separation of money and state, but it is a significant step in that direction.

The paradox, and the central hope of the Milei economic program, is that removing the ability to cheat on debts will sharply reduce the cost of borrowing. Argentina has daunting problems, but it is also possessed of many highly educated and motivated people and an impressive array of natural resources. The level of wrenching social change that will be required means that success is years away if it happens at all. However, achieving a separation of money and state is an important first step.

*****

This article was published by AIER, American Institute for Economic Research, and is reproduced with permission.

Image Credit: Wikimedia Commons

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

The NatCons Are Dead Wrong thumbnail

The NatCons Are Dead Wrong

By Stephen Moore

In the last several months I have had the occasion to debate some of the intellectual leaders of a group called the “national conservatives.” I consider myself a conservative (on most issues, though I lean more libertarian). They are well-meaning and make some very valid points about the things that are going in the wrong direction in America culturally and economically – especially in the post-Covid world under Biden.

Sometimes it really does feel like our country is decaying. Our government-run schools are rotten, there are more suicides and more drug overdoses, our border is out of control, our debt is growing exponentially, our basic First Amendment rights are under assault, the left wants to take away our air conditioners, our cars, our gas stoves, control of our home thermostats, our cities are starting to resemble third world countries, and everything is more expensive. President Biden, who pledged to be a unifier, is driving the country over a progressive cliff.

Need I go on?

But they take their argument a step further and maintain that this squeeze on middle-class/blue collar Americans predates Bidenomics, and America has experienced a 40-year secular decline of disappearing factories, income inequality, the decline of union power, and shrinking wages. (RELATED: JOSH HAMMER: The ‘New Right’ Is Here To Stay, Even If Its ‘Dead Consensus’ Critics Want It To Disappear)

There are several prominent Senate Republicans – including Marco Rubio of Florida, J.D. Vance of Ohio, and Josh Hawley of Missouri to name a few – who have dabbled in this movement. They want activist government to raise the fortunes of the middle class.

What is weird is that they are making many of the same arguments that left-wing and avowed “Democratic socialist” Bernie Sanders of Vermont is saying to his progressive supporters.

They want more restraints on “big business” (such as through anti-trust enforcement and price controls on what industries can charge), more protectionist trade policies, tax policies that provide credits and deductions for having more children, restrictions on legal immigration, and even higher taxes on the rich. They are, in short, arguing for a more activist role of government for the supposed failures of the free market.

The nat cons inside and out of Congress seem to have forgotten the famous quip told by Ronald Reagan some fifty years ago: “the most frightening nine words in the English language are: “I’m from the government, and I’m here to help.”

A weird thing is happening politically in Washington. A new wing of the GOP – national conservatives or ”Nat Cons” – are adopting the declinist rhetoric of Bernie Sanders. That middle-class America has fallen behind over the last 40 years, and that all of the economic gains have gone to the richest Americans and big corporations.

Except this argument that all of the gains of the last 40 years – the greatest period of wealth creation and technological advance in world history – is flat-out false. Actually, it may be hard to appreciate given the last three depressing years of COVID-19, lockdowns, and then Bidenomics, but the last 40 years have been a golden age of prosperity for virtually every income group – including the middle class. Median family income reached $78,000 in 2020, which is $20,000 a year HIGHER than it was in 1983. That’s about a 35% after-inflation increase over the period.

Those income measures don’t include the much wider availability of more non-cash benefits – such as health care coverage, more vacation, and 401k and other retirement benefits – that make middle-class families almost 50% better off than in the late 1970s. They don’t take into account the cleaner air and water, the vast improvements in combating diseases like cancer and heart disease, the vast superiority of the quality of products we buy today, and the fact that virtually all Americans now have a device in their pockets that puts the whole world and the entire Library of Congress at their fingertips – with access that is virtually free.

Even though it is true that money can’t buy love or happiness or grace, the material well-being of the middle class and the poor is much more secure than in the supposed golden days of the 1950s, 1960s, and 1970s. I would refer readers to a book that I wrote several years ago with the late Julian Simon called “It’s Getting Better All the Time,” for a review of all the economic and financial advances for the middle class over the last 50 to 100 years. When Trump was president, the middle class made some of the fastest gains, with middle-class incomes rising by more than $6,000 in four short years. (RELATED: STEPHEN MOORE: The Left’s Green Dreams Are Going Up In Smoke)

What launched the more than $50 trillion in American wealth over the last four decades was an era of lower tax rates, freer trade, a stable dollar, declining union dominance, a vast expansion of right-to-work laws, a generous legal immigration process that allowed the U.S. to import more than 25 million talented immigrants who became Americans and expanded the pie for everyone.

I can understand why an avowed Democratic Socialist like Bernie Sanders might want to reject these realities.

What’s scary is that we now have some conservative intellectuals – who should know better – telling us that we need more government restrictions on business, less immigration, more trade protectionism, more union power, and even more redistributive tax policies. This is an ahistorical playbook that would guarantee to make America – and virtually all Americans – poorer.

*****

This article was published by the Daily Caller News Foundation and is reproduced with permission.

Image Credit: YouTube screenshot

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

10 Major Reasons to Exit the World Health Organization thumbnail

10 Major Reasons to Exit the World Health Organization

By ACT For America!

U.S. and Individual Sovereignty Under Threat of Global Medical Tyranny!


THE WHO IS ABSOLUTELY DESPICABLE

The WHO is not an honest participant in their negotiations. They have committed voting fraud. They are conspiring to violate Article 55. They are openly participating in genocide.

JAMES ROGUSKI | Substack | DEC 5, 2023 | Condensed

10 Reasons to #ExitTheWHO:

  1. The Working Group for Amendments to the International Health Regulations (WGIHR) is scheduled to meet on December 7-8, 2023.
  2. The Senate never gave its consent to the 1969 International Health Regulations, nor did it consent to the 2005 or 2022 amendments. They have no standing in this issue unless they challenge the IHR at its core. Over the past 18 months, not one Senator said even one word in opposition to the May 2022 amendments. They allowed the December 1, 2023 deadline to pass without saying anything. They should all be ashamed of themselves.
  3. The WHO has clearly committed voting fraud in regards to the 2022 amendments.
  4. In Canada, a Parliamentary petition requesting a Parliamentary discussion of the 2022 amendments that collected 18,973 signatures in 30 days was ignored.
  5. In Australia, a Parliamentary petition requesting a Parliamentary discussion of the 2022 amendments that collected 55,673 signatures in 30 days was also ignored.
  6. In the United Kingdom, the Foreign, Commonwealth and Development Office failed to present the 2022 amendments to the UK Parliament so that they could consider rejecting them for 21 sitting days as is required by statute.
  7. The UK government also ignored a Parliamentary Petition that requested a Parliamentary debate of the 2022 amendments even though it collected over 116,000 signatures from April 3, 2023 to October 3, 2023. Disgustingly, they finally got around to scheduling a “debate” for December 18, 2023, which is obviously after the December 1, 2023 deadline.
  8. The Working Group for amendments to the International Health Regulations is clearly conspiring to violate Article 55’s requirement to provide a final version of the amendments 4 months in advance of the 77th World Health Assembly from May 27 – June 1, 2024. They openly admit this by having scheduled meetings for February 5-9, 2023 and April 22-26, 2023.
  9. The WGIHR is actively considering amendments that exceed its Constitutional authority.
  10. For 76+ years, the World Health Assembly has failed to EVER adopt regulations for any of the issues in Article 21, sections b, c, d, and e listed below. Their complete and total failure to set standards in the past, and their complete and total failure to even consider any amendments regarding these issues during the current negotiations is absolutely UNACCEPTABLE.

WHO CONSTITUTION

ARTICLE 21

(b)  nomenclatures with respect to diseases, causes of death and public health practices;

(c)  standards with respect to diagnostic procedures for international use;

(d) standards with respect to the safety, purity and potency of biological, pharmaceutical and similar products moving in international commerce;

(e) advertising and labelling of biological, pharmaceutical and similar products moving in international commerce.


Take Action to Defund and Exit the WHO!


EDITORS NOTE: This ACT! for America column is republished with permission. ©All rights reserved.

Fake Meat: More Entrée or Agenda? thumbnail

Fake Meat: More Entrée or Agenda?

By Phillip W. Magness

Editors’ Note: A variety of ideas to “fight climate change” are afoot. Some are directly pushed by the government that uses its taxing and regulatory power to substitute its judgment for those of its citizens.  They want to dictate what kind of dishwasher, stove, or heating system you will use. Other methods are subsidization and tax breaks, for things like solar power or electric vehicles. Outside of direct government coercion, some products come from entrepreneurs who believe a wave of change is coming and they want to get in front of it. That is fine. It’s their money, as long as we are not forced to buy their stuff, they are free to produce what they think people will want. Where possible, the use of force by the government to dictate choices and outcomes should be resisted. Certainly, in the private sector, those who fail to heed the real signals of the marketplace must be allowed to fail and no government bailout should be allowed. If they believe their own woke agenda, and people are not buying either their products or their propaganda, these firms must be allowed to fail.

The Fed’s aggressive interest rate hikes, the surge in retail trader activity, and pandemic-driven valuations have led many previously high-flying public firms to face a sudden reversal of fortunes. Transitioning from pandemic-era policies to a more typical economic environment, firms again need strong business fundamentals to survive in a competitive landscape. A reality check has arrived for the “meme stocks” like GameStop and AMC Theatres, the SPACs (Special Purpose Acquisition Companies) like WeWork and Virgin Orbit Holdings, and even firms with tangible post-pandemic prospects, like Zoom and Netflix.

Among the casualties are a growing number of plant-based meat substitute companies that initially garnered substantial investor interest but have since grappled with low and diminishing consumer demand. In June of this year, UK-based Meatless Farm shut its doors not long after Heck, a maker of meatless sausages, announced that it would substantially reduce its consumer offerings. Nestlé-owned Garden Gourmet also pulled its vegan offerings from UK shops in March 2023. Canada’s Very Good Food Company, a vegan food producer which soared 800 percent on the day of its public offering in 2020, recently collapsed after revealing it had never been profitable.

By far the biggest turnabout has occurred in the most prominent plant-meat substitute enterprise, Beyond Meats. The corporate flagship of the sector conducted its IPO in May 2019 priced at $25 per share, opening at $46 and rising to as high as $72 on its first day of trading. By July 2019 the stock price briefly surpassed $230 per share, spiking above $150 per share several times during the pandemic. But since mid-2021, the stock price fell from over $100 to recently close below $6. For six consecutive quarters, the company has reported negative sales growth amid not only a loss of market share but a contraction in the size of the fake meat market. Nearly one-fifth of the firm’s non-production workforce was laid off early in November 2023. Financial analysts have characterized the firm as in survival mode, with its financial deterioration bringing about a “going concern” risk.

So why are so many plant-based “alternative” meat companies faltering at the same time? Part of the answer, we propose, may derive from a pattern of noisy market signals that we dub Conspicuous Production.

Conspicuous Production refers to the creation of goods that are not necessarily sought by a large consumer base, but that are thought to convey certain social signals when they are marketed to the public. It’s a supplier’s counterpart to the more famous concept of Conspicuous Consumption, wherein consumers purchase products to show off the status, wealth, tastes, or social desirability that ownership of a good is perceived to convey. In the case of conspicuously produced goods, the supplier offers a product that caters to certain social trends and causes, whether or not people are willing to purchase it.

It is not difficult to see how artificial “meat” companies fall into a pattern of Conspicuous Production. These plant-based alternatives are presented as more environmentally friendly alternatives to meat. They ostensibly facilitate the reduction of meat-based diets, which is an increasingly vocal political demand of climate activists. Many of these products are also marketed as vegan under an ideological presumption that eating plants is more ethical than eating animals. A retailer might accordingly choose to carry large selections of plant-based “meat” products out of the belief that it will gain them reputational accolades from their shoppers by signaling social responsibility, sustainability, and similar sentiments. Similarly, a restaurant may add a meat-colored congealed vegetable patty to their burger lineup, hoping to garner goodwill from diners who perceive this offering as environmentally ethical.

But what happens if very few people buy these same conspicuously produced food items?

We suspect that many vegan food companies have mistakenly interpreted the social signaling of “alternative meat” store displays and menu items as indicative of a much larger consumer base than they actually possess. It’s only when they unexpectedly encounter financial difficulties due to sluggish sales that the true state of affairs becomes evident. Furthermore, the prolonged shelf life of plant-based alternatives to meat, attributed to the numerous chemicals and binding agents used in their production, could be convenient for those seeking to showcase their company’s social consciousness by stocking their freezers. As we’ve witnessed during events such as hurricanes, COVID-induced grocery store rushes, and similar natural or political crises, what Pete Earle has termed “Magness Effects” are undeniably real.

To elaborate, even in situations where there is a glaring and widespread shortage of essential food items due to emergency circumstances, the vegan section of the freezer aisle often remains largely untouched. The majority of consumers simply have no desire to consume such products (and the small minority that does may already have well-stocked freezers filled with these items, again benefitting from their long shelf lives).

Yet, there is an underlying economic rationale behind the existence of these Magness Effects. Rather than aligning their product offerings with genuine consumer preferences, most grocery stores seem to allocate prime shelf space to faux-meat products as a way of projecting a particular image of social responsibility. They hope that when customers pass by a prominently displayed shelf of vegan goods, they may infer that the store is actively promoting values like saving the planet or protecting animals. It’s akin to establishments that prominently place recycling bins in public view, even though, in reality, the recyclables often end up mixed with regular trash once they’re out of sight. 

While the vast majority of shoppers are unlikely to open the vegan freezer door and select a package of artificially colored and molded celery stalks masquerading as chicken tenders, a substantial minority perceive this shelf as a testament to the store’s corporate social responsibility toward the environment. Meanwhile, the subset of the population that does consume these products maintains an ongoing oversupply relative to their market share. Since there’s little demand from others, they can walk into the store during a hurricane, blizzard, or other run on groceries and the artificial meat shelf will appear virtually unchanged from a typical Tuesday.

The news is not encouraging for plant-based meat entrepreneurs. A November 18th Telegraph UK article reports that the plunging fortunes of vegan food makers have occurred alongside the resurgence of interest in real meat. “Smashed burgers” account for a substantial part of the renewed interest, with eateries offering twists on the recipe in towns all across the UK. (Unsurprisingly, it’s a style that originated in the United States.) As for meat consumption trends in the US, the USDA estimates per-capita retail weight consumption of 224.6 pounds of red meat and poultry in 2022: 10.3 pounds higher than the average observed from 2012 to 2021.

The desperation of the grass-meat constituency is clear in the headlines of ideologically aligned media supporters. A widely-syndicated 16 November Associated Press article implored readers: “Plant-based meat is a simple solution to climate woes — if more people would eat it.”

Yet despite consumers speaking about as clearly as they ever do, an arrow remains in the quiver of the grass-burger constituency. Impossible Foods CEO (and former Stanford University biochemist) Pat Brown recommends a meat tax, drawing comparisons with the levies currently charged on tobacco, marijuana, and sugar products in various jurisdictions. If consumer tastes won’t salvage the market for animal-part-shaped blocks of dyed soy extract, its boosters and beneficiaries are hoping that government interventions will.

In the meantime, the plant-based alternatives industry appears to be facing its first true market test and doing poorly. True, the consumer base for fake meat is not zero. It’s simply a much smaller market than producers perceived, due to the noisy signals and political distortions of Conspicuous Production. The result is a plant-based alternative food industry that far outpaced the interest in what it had to offer, and is now seeing a rapid contraction as the consumer sovereignty corrects those misread signals.

*****

This article was published by AIER, American Institute for Economic Research, and is reproduced with permission.

Image Credit: Shutterstock

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

U.S. Housing Market under an Intentional Marxist Collapse thumbnail

U.S. Housing Market under an Intentional Marxist Collapse

By Geoff Ross

The Communist Biden administration working closely with uniparty Socialist (Republican in Name Only) Todd Young from Indiana and Communist Democrat Ben Cardin from Maryland have devised a plan to redistribute your hard earned tax money and give it away to hundreds of thousands of households to help them buy a new home.

The real question should be why can’t Americans afford a new home anymore?

The real question should be why is our economy in the economic septic tank?

Why is the Republican controlled congress still spending us into economic oblivion?

Why are we printing dollars and flooding our economy with this soon to be worthless currency?

These actions by the uniparty Congress have driven up inflation thus increasing the value of homes exponentially.

Then the Marxist led Federal Reserve step in and intentionally force interest rates to go up to artificially control inflation which in turn raises the bar beyond the reach of many Americans who get priced out of the once affordable housing market.

It is not the governments job to reduce housing costs, it’s not the governments job to increase the supply of affordable homes and mitigate the rising expenses of paying for a house.

The Marxist Biden administration has stolen this home ownership opportunity from Americans by its incompetent economic decisions and it’s now only a few can achieve this dream.

Biden’s solution is being the hero to buy votes using the redistribution of our hard earned tax dollars to pay for this insane idea. Pure Communist idealism.

Affordable home ownership is the job of the free markets with a congress that can create a balanced budget and eliminate the fraud waste and abuse of our tax money.

The current housing market is flopping around and slowing dying like a goldfish on the dining room table after it inadvertently jumped out of its bowl.

The Marxist Federal Reserve has viciously raised interest rates burying our economic growth as is evident by the historical data showing it’s the worst housing market since the 1980s.

Mortgage rates have not been this high in twenty years and home prices have jumped resulting in a rapid decrease in supply of homes.

The government response is not to cut the insane wasteful spending, they continue to flood our economy with devalued dollars, they won’t cut interest rates. It’s an intentional assault on our economy my opinion.

The uniparty useless Congress working with Biden instead print or borrow more money from Communist Chinese for unconstitutional redistribution of your declining and potential worthless dollars.

The Communists in the White House stated it was trying to reduce costs for first-time buyers through the the Federal Housing Administration program. Somebody in congress tell them “It’s not their job”!

The best thing the Marxist Biden Administration and the socialist Republican controlled uniparty congress can do is balance the federal budget and reign in wasteful spending. Obviously the Congressional pigs with their snouts in the tax payer trough will not do the right thing at this juncture.

The do nothing Republican controlled Congress should defund and eliminate useless Federal departments like the Department of Education and Labor and Commerce as a start.

They should totally defund the Communist inspired Green New Deal and let the free market capitalists and entrepreneurs who built this country restore confidence once again in the once booming financial sound housing market.

©2023. Geoff Ross. All rights reserved.

RELATED ARTICLES:

Net Zero Housing: The Dark Side of ‘Smart’ Living and Personal Autonomy

The Fed Is ‘Chasing Its Own Tail’ On Inflation, And The Housing Market Is Paying The Price, Expert Says

There’s an Easy Fix That Would Solve Our Housing Crisis: Light Touch Density

‘248% Increase In Price’: Video Reveals Kevin McCallister’s Grocery Bill In Biden’s Economy thumbnail

‘248% Increase In Price’: Video Reveals Kevin McCallister’s Grocery Bill In Biden’s Economy

By Julianna Frieman

Editors’ Note: This little exercise performed by a TikTok user is illustrative of how painful inflation is, especially for the poor who don’t own assets to any extent. They get through life largely by living from paycheck to paycheck. It has been 33 years since the movie was made so if you divide the 248% inflation by 33, you get an average inflation rate of 7.5% per year. This is the hidden “tax” levied on the populace by a government and central bank that can’t control spending, and pay for their excesses by depreciating the value of money. In December of 1990, the S&P 500 was about 330 and today it is almost 4600. Gold was about $400 per ounce at the end of 1990, and today it is $2,080. Both advanced much faster than Kevin’s grocery basket. So those who can afford to buy assets and leave them alone for the long term, have done OK, but most of us can’t put the bulk of our wealth in investments. The policies of deficit spending, allegedly justified by programs to “help the poor”, turn out in fact to be policies that hurt the poor the most. We would not need to fund government through money printing if our political leaders would balance the budget and we got back to a system of stable money that held its purchasing power.

Kevin McCallister would need more than $20 to pay off his grocery bill in President Joe Biden’s economy.

TikTok user Geoffrey Lyons determined that the shopping trip in “Home Alone” would not be as affordable in 2023 as it was in the film, which was released in 1990, according to the New York Post. Many were left wondering how the math of modern inflation would impact this Christmas classic.

Kevin’s shopping list consisted of the following ten items: TV dinner, a load of Wonder Bread, frozen Mac and cheese, cling wrap, a half-gallon of milk, tide laundry detergent, toilet paper, a half-gallon of orange juice, a pack of army men and dryer sheets, according to the outlet. With a $1 off coupon for the orange juice, Kevin paid $19.83. (RELATED: Joe Pesci Reveals Worst Injury He Suffered While Filming ‘Home Alone’)

Lyons revealed the current price of each item on Kevin’s grocery bill in the United States, concluding that the child would have to fork over $63.73 before tax, the outlet reported. The total would be $68 including the coupon — a 248% increase in price from 30 years ago.

“So, I broke it down, $4.50 for the orange juice. $4.50 for the saran wrap. TV dinner: couldn’t find the same one, so we did $5 for that one because it had the food inside,” Lyons said. “$13.00 for the Tide. $3.00 for the Wonder Bread. $3.50 for the frozen mac. $4.60 for the milk. You got $8.79 for the dryer sheets. You got $8.00 for the toilet paper, and you got just $9.00 for the toy soldiers.”

The video received more than 3 million views and several comments expressing shock at the economic shift.

“A $100 bill is the new $20 bill,” one user wrote.“

I bet the cashier’s wage is still the same in 2023,” another commenter wrote.

“Self-checkout I’m still paying 19.38 today,” a third user wrote.

*****

This article was published by The Daily Caller News Foundation and is reproduced with permission.

Image Credit: YouTube screenshot of the movie Home Alone produced by 20th Century Fox

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

“Unrealized Losses” on Securities Held by Banks Jump by 22% to $684 Billion in Q3, Oh Lordy thumbnail

“Unrealized Losses” on Securities Held by Banks Jump by 22% to $684 Billion in Q3, Oh Lordy

By Wolf Richter

“Unrealized losses” on securities – mostly Treasury securities and government-guaranteed MBS – at FDIC-insured commercial banks at the end of Q3 jumped by $126 billion (or by 22%) from the prior quarter to $684 billion, according to the FDIC’s quarterly bank data release on Wednesday.

These unrealized losses were spread over the two accounting methods:

  • Unrealized losses on held-to-maturity (HTM) securities jumped by $81 billion from the prior quarter, to $391 billion.
  • Unrealized losses on available-for-sale (AFS) securities jumped by $45 billion from the prior quarter to $293 billion.

These paper losses occur predictably when interest rates rise. As yields rose in Q3, the market prices of those bonds fell, and the unrealized losses stacked up. For example, the 10-year Treasury yield jumped from 3.81% at the beginning of Q3 to 4.59% at the end of Q3. In periods when yields fell and bond prices rose, banks had “unrealized gains” (green).

“Unrealized losses” on securities held by banks don’t matter because at maturity in 7 or 10 or 25 years, banks will be paid face value, and the losses are only temporary, so to speak. They don’t matter until they suddenly do.

Banks, via a quirk in bank regulations, don’t have to mark these securities to market value but can carry them at purchase price. The difference between market value and the purchase price is the “unrealized gain or loss” that the bank must disclose in its quarterly financial filings, so that we the depositors can see them and get spooked by them and yank our money out, us billionaires and centimillionaires first, on the two fundamental principles of investing: 1, he who panics first, panics best; and 2, after us the deluge.

And thanks to today’s electronic fund transfers, the bank that we yank our money out collapses at lightning speed, see Silicon Valley BankSignature Bank, and First Republic.

The accumulated unrealized losses of $684 billion were not a record, but we are still $6 billion lower than the record in Q3 2022, because the FDIC took over the three regional banks earlier this year, and sold their assets, including their securities, at something close to market value, and thereby ate those paper losses…..

Rethinking Economic Analysis and Strategy thumbnail

Rethinking Economic Analysis and Strategy

By Amil Imani

The latest data on the Consumer Price Index (CPI) reveals contrasting trends, raising questions about the effectiveness of recent Federal Reserve actions and the potential impact on everyday Americans. As of October 2023, the annual CPI rose 3.2%, primarily due to the “fortuitous plunge” in energy prices. However, a deeper dive into the numbers exposes an inflation rate curtailed by falling energy costs. The core CPI, which sidesteps the volatility of food and energy, remained resilient, clocking in at 4.0%.

The divergence between headline and core inflation rates underscores the interplay of economic factors.

The Federal Reserve’s aggressive interest rate hikes were expected to quell inflationary pressures. Yet, the core CPI’s stubborn rise suggests a more tempered impact on the segments excluded from the headline index. Why?

Firstly, the interest rate hikes have inadvertently tilted the playing field against renewable energy technologies. As interest rates climbed, the levelized cost of electricity (LCOE) for renewables soared, jeopardizing their competitiveness vis-à-vis fossil fuels. It is a cautionary tale, reminding us that monetary policy can have unintended consequences on our pursuit of a greener future.

Higher interest rates shouldn’t impede progress toward sustainable energy – yet here we are, grappling with the repercussions on our journey towards a low-carbon economy.

The elevated interest rates provided legacy oil and gas producers a lifeline. Shielded from the onslaught of low-carbon alternatives, these traditional energy giants could maximize revenues from their aging assets. A dichotomy emerges – the Fed’s pursuit of economic stability inadvertently bolsters sectors that contribute to environmental concerns.

Are we inadvertently sacrificing our environmental goals in the pursuit of economic stability?

Moreover, the core inflation rate is not a monolithic entity; it responds to a myriad of influences. Rising shelter prices, a crucial component, witnessed a slowdown in growth due to falling hotel prices, not reductions in rent or homeowners’ equivalent rent.

It’s not just about energy and food but also the intricacies of housing costs that shape the economic narrative.

As we contemplate the repercussions of interest rate hikes, we must recognize the tangible impacts on individuals and businesses. Homeowners with mortgages face increased monthly repayments, potentially inducing financial stress. Simultaneously, enterprises grappling with higher borrowing costs might curtail investments, a potential drag on economic growth.

How are these interest rate hikes affecting you? Is your monthly budget feeling the strain, or is your business reassessing growth plans?

Furthermore, the indirect effects on the economy are equally profound. Higher interest rates could set off a wage-price spiral – a cycle of rising wages leading to higher prices, fueling further wage increases. This self-fulfilling prophecy can spawn an inflationary loop that is challenging to break.

Are we on the brink of a wage-price spiral? The interconnectivity of wages and prices can have cascading effects on our economy.

Beyond these direct and indirect impacts, such hikes can reshape expectations about future inflation and interest rates. If core inflation remains high despite rate hikes, it could dampen investment sentiments, potentially slowing economic growth.

It’s imperative to question the unintended consequences of policy decisions and their ripple effects on our collective pursuit of a prosperous and sustainable future.

The 3.2% annual increase in the US Consumer Price Index (CPI) has profound implications for the economy and individual households. Let’s dissect the potential fallouts of this uptick:

As a measure of the average price change for a basket of goods and services, the CPI signifies an augmented cost of living. This escalation strains household budgets, particularly those reliant on fixed or low incomes. The 3.2% CPI increase amplifies the financial challenges faced by everyday consumers, raising pertinent questions about the adequacy of income levels in the face of rising prices.

How does the increased cost of living impact your household budget? Are you making ends meet with the recent price surge more challenging?

Historically, the Federal Reserve responds to mounting inflation by raising interest rates. While this strategy proves effective, it concurrently amplifies the cost of borrowing, potentially slowing economic growth. The ripple effect extends to the stock market, where higher interest rates render bonds more attractive than stocks, influencing investment decisions and market dynamics.

How are you adjusting your investment strategy in response to potential shifts in interest rates? Are higher borrowing costs affecting your financial decisions?

If wages fail to keep pace with inflation, workers’ real purchasing power diminishes, culminating in a decline in the standard of living. This scenario poses challenges for individual households and introduces the specter of social unrest and heightened pressure on employers to reassess wage structures.

Have you noticed a stagnation or decline in your real purchasing power? Are calls for wage increases becoming more pronounced in your workplace or community?

The interplay between businesses passing on higher costs to consumers and anticipating prolonged high inflation can set the stage for a self-sustaining cycle known as ‘sticky’ inflation. If left unchecked, this phenomenon poses a formidable challenge for central banks as breaking the cycle becomes increasingly complex.

Do you perceive a sustained trend of rising prices, and how does this impact your expectations for future economic conditions?

The upward push of inflation can translate into elevated costs for servicing government debt, particularly if it leads to higher interest rates. This potential uptick in government expenditure on debt servicing could exert budgetary pressures, prompting government service cutbacks or tax increases.

Are you concerned about the potential repercussions of increased government debt servicing costs on public services and taxes?

While a 3.2% increase in the CPI may not be deemed excessively high by historical standards, its repercussions resonate significantly throughout, and the role of interest rates cannot be underestimated. Their direct and indirect impact is felt across various sectors and individual lives, shaping the contours of our economic reality.

How confident are you in the economic outlook? Are you adjusting your investment strategy based on expectations of future inflation?

So, are we treading the right path, or do we need to recalibrate our economic strategies?

‘Zero Tolerance’: These Are The Massive Corporations That Have Recently Ceased Advertising On Elon Musk’s X thumbnail

‘Zero Tolerance’: These Are The Massive Corporations That Have Recently Ceased Advertising On Elon Musk’s X

By The Daily Caller

Eight major corporations have recently withdrawn their advertising from billionaire Elon Musk’s X, formerly known as Twitter, according to reports.

Several advertisers left X shortly after a recent report by left-wing activist group Media Matters alleged that ads show up next to antisemitic content on the platform, as well as a post by Musk that was interpreted by some as antisemitic. Apple, Comcast, IBM, Lionsgate, Paramount Global, Sony and Warner Bros. Discovery all pulled their advertising from the platform following these antisemitism controversies, according to reports.

So then why is Disney boycotting 𝕏, yet spending millions on other platforms? pic.twitter.com/vIX5hhc8RS

— Elon Musk (@elonmusk) December 1, 2023

Walmart was reportedly the last major advertiser to pull out of X, Reuters  reported on Friday. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokesperson told the outlet.

However, X clarified that Walmart is still using the platform in a statement shared with the Daily Caller News Foundation. “Walmart did not pause because of recent events and has not advertised on X since October, instead the company has just been organically connecting with its community of more than one million people on X,” X’s head of operations Joe Benarroch stated. He added that Walmart is still posting on the platform to its large audience even though it has ceased advertising.

X CEO Linda Yaccarino backed Musk in a Thursday internal memo following his inflammatory comments to advertisers in an interview at The New York Times’ DealBook summit on Wednesday, according to CNBC, which obtained the document. Musk went off on an expletive-laced rant against advertisers, describing their actions as extortion.

“IBM has zero tolerance for hate speech and discrimination and we have immediately suspended all advertising on X while we investigate this entirely unacceptable situation,” an IBM spokesperson told CNBC after Media Matters’ report showed its ads on antisemitic content.

Advertising accounted for about 90% of Twitter’s revenue prior to Musk purchasing the platform in October 2022, according to The New York Times.

Musk replied to an alleged anti-semitic post about Western Jews advocating for “dialectical hatred against whites” by stating, “You have said the actual truth.”

“By him taking the position he took, we felt that the association with that position, and Elon Musk and X, was not a positive one for us,” Disney CEO Bob Iger said at the summit, according to The Verge.

“Don’t advertise,” Musk said at the summit. “If somebody is gonna try to blackmail me with advertising, blackmail me with money, go fuck yourself. Go fuck yourself. Is that clear? I hope it is.”

Yaccarino praised Musk’s comments and echoed his objective of making X a free speech platform, even if it costs the company financially in the memo.

“Our mission at X is bold: to be an open platform without censorship of thought – one that provides people information and the freedom to make up their own minds,” Yaccarino wrote in the memo. “Our principles do not have a price tag, nor will they be compromised – ever. And no matter how hard they try, we will not be distracted by sideline critics who don’t understand our mission.”

Walmart did not immediately respond to the DCNF’s request for comment.

AUTHOR

JASON COHEN

Contributor.

RELATED ARTICLES:

Org That Defunds Conservatives Tries To Sic Biden FTC On Elon Musk’s X

In Three Words, Elon Musk Showed How To Dismantle The Deep State

POSTS ON X:

pic.twitter.com/cK5KFEUhvS

— Elon Musk (@elonmusk) December 1, 2023

Dana White to the liberal mob: “Go f*** yourself.”

Tucker Carlson to the liberal mob: “F*** you.”

Elon Musk to the liberal mob: “Go f*** yourself… Hi Bob!”

There are few men with real influence in this country who have the guts and are willing to raise the middle finger to… pic.twitter.com/wRKIRm4z2I

— Collin Rugg (@CollinRugg) December 1, 2023

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.


All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

OPEC+ Is Cutting Oil Production Again thumbnail

OPEC+ Is Cutting Oil Production Again

By The Daily Caller

OPEC+ announced a new round of cuts to oil production on Thursday, The Wall Street Journal reported.

The oil cartel, which is responsible for about 40% of the world’s oil production, said that it would reduce production by an additional 1 million barrels per day, equivalent to about 1%of total global daily consumption, according to the WSJ. The fresh round of production cuts will likely keep oil prices at elevated levels as tensions remain high in the Middle East.

The move “essentially shows the group wants to prevent the oil market from being oversupplied, keep control of oil market fundamentals and keep playing the role of central bank in oil markets,” Giovanni Staunovo, a commodity analyst at the Union Bank of Switzerland (UBS), told the WSJ. The cartel’s member countries reportedly disagreed about the size and distribution of the cuts, but the organization agreed in the end to move forward.

Biden, after canceling the Keystone XL Pipeline, is now blaming Russia and OPEC for high gas prices. https://t.co/RYn7hnkKWC

— Daily Caller (@DailyCaller) November 2, 2021

As part of the agreement, Saudi Arabia also will extend its 1 million barrel per day cut, which it announced initially in June, the WSJ reported. The cartel also invited Brazil to join its ranks, but Brazilian officials have reportedly not yet decided whether to accept the invitation.

Oil and gas prices in the U.S. have retreated from their high levels earlier this year and during the summer of 2022, but they still remain elevated relative to prices seen before the pandemic. Thursday’s announced cuts will likely keep oil prices between $80 and $90 per barrel for an extended period of time, market analysts told the WSJ.

Notably, that projected floor price is slightly above the Biden administration’s stated target price to purchase supply to refill the strategic petroleum reserve (SPR). President Joe Biden opted to release about 180 million barrels from the SPR in the months leading up to the 2022 midterm elections, but the vast majority of those sales have yet to be replenished.

The SPR’s low levels have come back into focus given the degree of geopolitical uncertainty in the Middle East as Israel wages war against Hamas. Some energy policy experts told the Daily Caller News Foundation that the SPR’s current condition leaves the U.S. more vulnerable to oil price shocks if the war boils over into a more widespread conflict.

Neither the White House nor the Department of Energy responded immediately to requests for comment.

AUTHOR

NICK POPE

Contributor.

RELATED ARTICLE: Biden Begged Russia And OPEC For Oil Last Year. Now He’s Just Begging OPEC

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.


All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Illegal Migration Has Cost Americans $150.7B thumbnail

Illegal Migration Has Cost Americans $150.7B

By Catherine Salgado

As of the beginning of 2023, the net cost of illegal immigration for American taxpayers altogether, including federal, state, and local costs, was at least $150.7 billion—and under Biden, it’s going up steeply all the time.

The Federation for American Immigration Reform (FAIR) came out with a report on the heavy cost of illegal migration in America in March. FAIR noted that the net cost of illegal immigration was about $116 billion as of 2017, meaning that almost $35 billion has been expended just in five years. The cost to each taxpayer is $1,156 annually.

Meanwhile, the Biden border crisis has become ever more catastrophic; for instance, just in one border sector (Tucson) recently, 2,800+ illegal aliens crossed into the U.S. in one day and over 15,000 in one week.

  • FAIR arrived at this number [$150.7B] by subtracting the tax revenue paid by illegal aliens – just under $32 billion – from the gross negative economic impact of illegal immigration, $182 billion…
  • Illegal immigration costs each American taxpayer $1,156 per year ($957 after factoring in taxes paid by illegal aliens).
  • Each illegal alien or U.S.-born child of illegal aliens costs the U.S. $8,776 annually.

Share

  • Evidence shows that tax payments by illegal aliens cover only around a sixth of the costs they create at all levels in this country.
  • A large percentage of illegal aliens who work in the underground economy frequently avoid paying any income tax at all.
  • Many illegal aliens actually receive a net cash profit through refundable tax credit programs.

It’s completely disgusting that American taxpayers are being drained to support people who should never have been in the country in the first place.

*****

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

Over the last ten years, Turkey has made 249 requests every day for removal of content from Google thumbnail

Over the last ten years, Turkey has made 249 requests every day for removal of content from Google

By Jihad Watch

Who controls your access to information, and determines what you can see and what you cannot? To a surprising degree, Recep Tayyip Erdogan does.

Turkey has requested removal of massive amount of online content from Google in 10 years

Turkish Minute, November 23, 2023:

Turkish government agencies have requested the removal of a total of 90,400 web pages and other content from Google in the last decade, Voice of America (VOA) Turkish edition reported on Wednesday, citing data from a report by the virtual private network company Surfshark.

According to the report, 150 countries have submitted a total of 335,000 removal requests to Google in the last 10 years. These requests included the removal of 3,870,000 different websites and pages claimed to be “objectionable.”

Turkey was the fourth country, after Russia, North Korea and India, that most frequently requested the removal of content from Google, submitting 18,900 requests for the removal of 90,400 web pages and other content in 10 years, which corresponds to an average of 5 pieces of online content per day.

During the same period, Russia submitted a total of 215,000 content removal requests to Google, accounting for 85 percent of all requests. North Korea came in second, submitting 27,000 content removal requests to Google over the past decade, and India was in third place with 20,000 requests.

The report showed that “national security” is the most common reason cited by governments to get unwanted content removed, with 27 percent, followed by “copyright” (19 percent) and “defamation” (10 percent). Turkey leads in citing defamation as the reason, representing over a fifth of all defamation claims with more than 7,600 requests.

According to the report, the number of requests worldwide has increased approximately 13 times, rising from 7,000 annually to 91,000 in the past 10 years, or from 19 requests per day to 249….

Read more.

AUTHOR

ROBERT SPENCER

RELATED ARTICLES:

Maine: Star of David removed from town’s holiday light display after Muslim complaints

Michigan: Muslim cleric says ‘Palestinians’ are ‘fighting on behalf of the entire nation of Muhammad’

In Germany, Police Call Crime Wave By Migrants ‘Frightening’

The Nazi Roots of Hamas

Francisco-Gil White’s shocking revelation about Hamas-Israel war

Woke millennial leftist feminist justifies Qur’an’s call to beat disobedient women

How Hamas Treats the Hostages

Germany: Muslim teens planned jihad massacre at Christmas market or synagogue

RELATED VIDEO: This Week In Jihad with David Wood and Robert Spencer

EDITORS NOTE: This Jihad Watch column is republished with permission. ©All rights reserved.

Weekend Read: How Do You Invest For Deflation? thumbnail

Weekend Read: How Do You Invest For Deflation?

By Neland Nobel

A few essays ago, we suggested that given the extreme financial leverage (overuse of debt) in both the governmental and private sectors, the risk of a deflationary period may be higher than many believe.

You might remember the extreme events during the Great Financial Crisis of 2007-2009.  We are still living with the echo from that period. Money market funds failed and had to be rescued. Brokerage houses like Merrill Lynch failed and had to be sold off to Bank of America.  Lehman Brothers failed, and they had been in business since the Civil War.  There were increased bankruptcies.  Real estate declined.  In the Phoenix area, one of the hottest markets in the country, we suffered about a 50% decline in the value of residential housing.  The S&P 500 declined over 50% in value.  In short, it was a scary and painful period, even with all the governmental attempts to reverse the process.

Stocks declined by over 50% and indexing did not help at all.  It took years to recover.

So, while we readily admit that the bias of our system (constant fiscal and monetary stimulation) is towards inflation, deflationary interludes have and likely will occur in the future. 

Inflation is something we are all used to and we know what to do. Buy assets: stocks, gold, commodities, real estate, and valuable collectibles like art and gemstones. Go into debt and pay your creditor back with cheaper dollars than those you borrowed and leverage your inflationary gains. However, what to do in deflation is a bit foreign to many investors.

A deflationary period suggests that authorities either lose control of events or are simply overwhelmed by events.  If history is any guide, they will attempt to re-inflate, and the FED will pivot back to lower interest rates and the use of Quantitative Easing.  That of course will take time and there is still lots of leeway to get hurt in declining markets.

Thus, deflationary investing is more like an intermediate trade rather than long-term compounding based on the historic growth of the economy.  The attempt is to make money and reduce losses elsewhere, for the duration of the contraction, knowing that the inherent bias of our system is towards inflation or currency depreciation.  In this sense, investing for deflation is not long-term investing, but it is not day trading either.  Likely positions will be held for several years, but usually, that is about all.

If we are correct that deflation poses a threat at least at some level of probability, then the question is:  what as private citizens and investors can we do about it?

Assuming we will be able to determine the change in the economic weather in time (this is much more difficult than we are making it sound), here are some basic ideas to work with.

The most important thing to remember is that financial leverage that is so beneficial on the way up, has the same leverage on the way down.  This suggests paying down debt before the recession.  Very often loans are collateralized based on the value of a stock portfolio or a real estate. If those assets decline in value, you might be placed in a liquidity crisis.  The bank may ask you to pay down the loan because the collateral has fallen below or near the value of the loan. You may not have the cash to do that.  The result may be a fire sale environment for your assets that will destroy much or all of their value.

So, the first broad observation is to reduce debt and financial leverage and increase holdings in cash-like instruments.  Today, with interest rates at least as high as inflation, seek those cash-like instruments that have the highest credit rating.  That would include things such as insured CDs and US Treasury Bills.  The returns now are pretty decent and they are not a bad place to set out the storm.  Avoid the siren song of high yields.  Things that have high returns do so for a reason, they are higher in risk.  Deflationary investments are basically de-risking the portfolio.

Notice this is not a strategy to make a lot of money.  It is basically an attempt to get out of harm’s way and make at least a decent return while doing so.

No doubt this sounds boring but boring is good sometimes.

There are some quite dynamic positions that can be taken, but you must understand the trade-offs between risk and return.

Shorting the market (betting on the downside) does not work very well for the retail investor.  Perhaps the safest is buying put options since your risk is limited to the premium you pay for the options, but your timing must be very good or the options can expire worthless.  However, timing is extremely difficult and overwhelmingly retail investors lose when they buy either put or call options.  For most people, this is not a good strategy because timing is just too tricky.

There are now a number of reverse funds available today.  Unlike options, they don’t have the time constraint.  However, they often don’t track the market well and many brokers restrict the retail public from buying them.

In most previous cycles, once it is clear the economy is in trouble, interest rates start to fall for two reasons.  One is the drop in demand for loanable funds since there is little need to borrow money when business is contracting.  Secondly, the government and the Federal Reserve typically respond by pushing rates downward.  Stocks may benefit from falling rates, but it is not a sure thing.  We are talking about conditions where profits are falling and investors are scrambling for cash by selling things, including stocks.

The play with the higher probability of success is to buy longer-dated quality bonds.  Bond prices go up when interest rates go down.  The lower the coupon on the bond, and the longer the maturity, the more “duration” you get.  The ultimate would be a long-dated, zero-coupon bond.  They can be purchased individually or you can buy them in a fund such as Pimco’s ZROZ.

Unlike put options, the longer you hold a zero coupon bond (assuming interest rates are stable), the more valuable they become (they accrete interest).  You also get considerable leverage, without using debt to get that leverage.  Leverage in this sense means you get a lot of appreciation, for a relatively small outlay of cash.  The gains you hope for will offset losses you may be suffering elsewhere.  The term usually used to describe this process is “hedging”.   You use a modest amount of funds to do a lot of work, hoping to protect the overall value of a larger portfolio.

ZROZ was not available at the beginning of the crisis but it went on to go up fourfold in value.  A little bit of zeros did a lot of work. Note that they have fallen sharply after rates began to rise in 2020.  These are very much a creature of the interest rate cycle.

Another popular choice is the exchange-traded fund, TLT.

Bonds went up about 60% during the collapse of many other markets.

Certainly, a decline in rates has been a feature of all the last few cycles.  However, in today’s environment, even this has to be considered a “trade.”

The reason is this business cycle happens to come in the middle of a historic shift in demographics.  The peak of the baby boom was in 1957.  Most people get Medicare at age 65 and basically full Social Security benefits at 66 or so.  Add 66 to 1957 and you get 2023.  In short, a historic wave of the elderly will hit both “entitlements” over the next decade while the number of younger taxpayers is shrinking.  The end result will be to drive spending and deficits through the roof.  Coupled with the wild expansion of spending under Biden, the markets will have to digest a huge outpouring of Treasury Bonds.  These circumstances will likely drive interest rates back up.  If so, the “bond trade” will have a relatively short window:  the beginning of the bond recession and the immediate response of the government to it.

Not too long afterward, the longer-term financial crisis (the government selling huge quantities of debt) could depress bond prices (another way of saying interest rates will rise again), or rates will not fall as far as in past cycles.  We just don’t know.

Gold should get an honorable mention. Gold is still a key international banking asset and its role has been increasing as central banks have been buying at the fastest pace since the 1971 devaluation of the dollar and the end of the Bretton-Woods treaty arrangements.

During the last deflationary cycle, gold just about doubled in price.

Gold can’t default, and therefore, is a good holding during a period where defaulting can be an epidemic. Gold is the only international asset that is not someone else’s contractual obligation. In addition, gold tends to do well when central banks panic about economic contraction and go the other way by printing excessive amounts of money.  Either inflation or deflation, gold can work during times of economic instability.  It tends to do the worst in periods of stability.

We would note that the unwinding of the world’s biggest-ever debt bubble will likely be the antithesis of stability.

We can’t say if all patterns seen in the last financial crisis will prevail.  But history does tend to repeat itself.

Reduce debt, raise cash, have safe cash instruments, have some longer-dated bonds, and own some gold.  These are strategies to consider if deflation develops.

*****

Charts are courtesy of stockcharts.com and are drawn by the author.

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

UN COP 28 Is Not A Democracy thumbnail

UN COP 28 Is Not A Democracy

By David Wojick

Reading the breathless Green coverage of the soon-to-be COP 28, the UN conference on climate change (CFACT is on the way!), I noticed a fundamental fallacy occurring endlessly. The analysts seem to assume that decision-making is democratic, such that what you need to pass a rule is a majority vote along the lines of Congress or Parliament.

The reality is extremely different. Every member Country has veto power. This dramatically changes what is possible. The analysts consistently miss this, especially by talking about possibilities that are, in fact, impossible.

A good example is a recent Washington Post article discussing the possibility that COP 28 will adopt a decision calling for the phasing out of not just coal but all fossil fuel use. They correctly report that some countries are all for this while others are strongly against it.

The presently crazy Biden U.S. is for it despite being the world’s biggest per capita user of fossil fuels. Russia is sanely against it as fossil fuel exports are their primary revenue source.

It is then consistently reported as a maybe yes, maybe no situation, like Congress debating a controversial Bill. The obvious reality is that absent a miracle, this measure has no chance whatsoever. It is, as the saying goes, dead on arrival.

An even better example is the ridiculous proposal from France and, again the U.S. that the member countries all agree to, somehow, stop the private financing of coal-fired power plants. Given that China and a number of big developing countries are betting their electrical future on coal this is clearly nothing more than political posturing. Even a miracle could not save this nonsense. But it is dutifully reported and analyzed as a real possibility. At least it is here in America and likely in France, too.

Wishful COP 28 thinking is not news nor analysis, but it fills the pages. The reality is that none of these big-ticket issues that we read so much about have the slightest chance of happening.

The one big issue where something might actually happen is loss and damage. But it will be small, hyped as huge.

Recall that at COP 27, there was reported to be a great advance, creating a Loss and Damage Fund. This is where the developed countries will pay the developing ones something toward their supposedly climate-caused losses and damages: crop losses and food damages, for example.

In reality, all that was created is a name, an idea if you like. A Committee was established to give, or at least propose, form and substance to this nebulous idea. That has not happened because the issues are overwhelming. After all, every country gets bad weather. The U.S. has said it will donate millions of dollars while developing countries are talking trillions.

However, this loss and damage concept is so vague that there is room for moving forward without being so specific or dangerous, that we start getting vetos.

For example, they might agree on where this little fund will be established. This is presently controversial but probably not a deal breaker because the developing countries want to see money moving.

Or they might all agree that the first, small funds go to the Least Developed Countries or maybe to the poorest Small Island States. This is a feel-good first step that makes the fund real. It carefully avoids the issue of who gets how much of them trillions.

This is how COP diplomacy works. Find little steps that everyone is willing to allow while pushing the big issues down the road. Then, report these small steps as big breakthroughs. Of course, there is truly serious green stuff going on, but that is at the national level. COPs are just a carnival.

So, as you watch yet another COP play out, keep in mind that the grand schemes endlessly reported and analyzed at great length are going nowhere fast. Full of sound and fury, signifying nothing. Or as they say in Texas, all hat, no cattle.

Be amused, not angry.

Stay tuned to CFACT for jovial coverage of the COP 28 circus.

*****

This article was published by CFACT, The Committee for A Constructive Tomorrow, and is reproduced with permission.

Image Credit: screenshot COP website

TAKE ACTION

As we move through 2023 and into the next election cycle, The Prickly Pear will resume Take Action recommendations and information.

Americans Put the Holiday Hurt on Disney, Target, Others as Boycotts Bleed into Christmas thumbnail

Americans Put the Holiday Hurt on Disney, Target, Others as Boycotts Bleed into Christmas

By Family Research Council

When Disney CEO Bob Iger sat down to talk with employees about his bumpy year at the helm Tuesday, he said, “I knew there were myriad challenges that I would face.” What he didn’t count on was those “myriad challenges” being millions of still-angry Americans. After management ran the brand into the ground over a popular parental rights’ law last year, nothing seems to be rehabilitating the company’s image. Even the second coming of Iger, who was behind the wheel for some of Disney’s best chapters, hasn’t brought back the magic for consumers. Now, staring down a holiday season with crashing stocks, box office losers, and even less goodwill, will Iger stop riding this polarized express?

Experts have their doubts. Stephen Soukup, who’s spent years analyzing Disney’s radical evolution, worries that as long as Iger is in charge, the right lessons won’t be learned. Still, the author of “The Dictatorship of Woke Capital” was encouraged by last week’s news that Disney was at least admitting that it was on the wrong side of public opinion when it comes to their extreme LGBT advocacy.

In its annual report to the Security and Exchange Commission, management conceded that they “face risks relating to misalignment with public and consumer tastes for entertainment, travel and consumer products, which impact demand for our entertainment offerings and products and the profitability of any of our businesses.”

“What they’re saying,” Soukup translated, “is that their values differed from what the values of their expected audience are — and that’s a big deal,” he underscored on “Washington Watch.” “For a long time, Disney has professed to be the arbiter of values. And it turns out that the American public said, ‘No thanks. We’re not interested in allowing you to tell us what we should or should not believe. We’re not interested in having you inculcate our children in what they should believe, and we’re not going to spend our hard-earned money rewarding you for trying to do so.’”

But is that enough to force them back to neutrality on an agenda that includes, among other shockers, the open “queering” of children? “It should be,” Soukup agreed. “I think Disney faces a couple of very serious problems in trying to recover from this ‘misalignment,’” he explained. “The first of these is the fact that it’s in the business of selling values. You know, storytellers from Aesop to Jesus to the Grimm Brothers all the way forward, have been in the business of using storytelling to transmit values and virtues from one generation to the next, and that’s the business that Disney [is] in. If its values and virtues do not align with the public, then it becomes a serious problem. It’s not as if they can simply say, ‘You know what? … We’re going to take politics and social policy out of our films. We’re no longer going to tell stories that have values.’ I mean, that’s the business they’re in. They have to tell stories that have morals. They tell stories that are intended to transmit values from one generation to the next. And that makes it very difficult.”

The second problem, Soukup insisted, is the guy at the top of the food chain: Iger himself. The two-time CEO, who was behind the wheel of Disney’s woke transformation from 2005 on, is the author of a lot of the extremist tendencies that got his company in hot water in the first place. And while there were some who thought Iger would find a way to rein in Disney’s activism, the last 12 months have given them zero reason for hope. “Disney is a political organization because of Bob Iger,” Soukup insisted.

“This didn’t start this year. It didn’t start in Florida. It didn’t start with Governor Ron DeSantis. As I note in my book, ‘The Dictatorship of Woke Capital,’ Bob Iger has been fighting a political battle, particularly against conservatives, for at least the last decade. He’s fought the battle in North Carolina. He’s fought the battle in Georgia. He’s fought the battle in Florida. This is something that he believes firmly in. And the fight against Governor DeSantis in Florida that made so much news over the last several months was, in fact, Bob Iger’s doing.”

“If you look at what Disney has said about when it decided to get involved,” the vice president of the Political Forum continued, “it was when Bob Iger emailed the then-current leadership and said, ‘We have to do something about this law in Florida. We can’t sit idly by and allow this to happen.’ And what Disney decided to do was fire [CEO] Bob Chapek and bring back Bob Iger. So I think Disney has two serious problems. Their business model is one of selling values. And the man who runs the company is an aggressively and overtly political player.”

And it’s not just Disney who’s thumbing their nose at shareholders. Target, Bud Light, Starbucks, Nike, and a slew of other companies made a very intentional corporate calculation to prioritize politics over profits. “In order for any of these businesses that have been punished by the public over the last year for being political, in order for any of them to make any headway in winning back their customers, they first have to get it,” Soukup emphasized. “It’s become clear, for example, that Target does not get it. That Target does not understand why its customers left it behind, why its customers got upset, why its customers started to boycott, and that they’re doubling down on the tactics that in fact alienated [people].”

While Target CEO Brian Cornell talks a good game, telling investors, “We are firmly focused on getting back to growth,” shelves of rainbow Santas and the hire of a senior-level Pride Lead say otherwise. “It was bad enough when they decided to politicize and sexualize the month of June,” Soukup said, “… but now they’re doing very much the same to Christmas. Their Christmas displays are reportedly very aggressively sexualized and very aggressively politicized. And that is a demonstration of the fact that the management of Target doesn’t understand or is unwilling to accept the verdict delivered to it by the public.” Until they do, they’re “courting the wrath of both customers and shareholders,” he insisted.

Maybe these Fortune 500 companies thought this wave of consumer activism rocking the country was a fad, that it would just blow over, and we’d all return to business as usual. But, as the latest quarterly reports for TargetDisney, and Bud Light prove, Americans’ outrage has staying power. At a time when retail sales are up, these trans-embracing giants are underwater.

“I think the public is exhausted with politics being everywhere and in everything. It’s not that Target is left-wing. It’s not that Bud Light embraced left-wing values. It’s not that Disney is liberal. They are,” Soukup said. “… But that’s not the point. The point is that people are tired of having politics shoved down their throat at every possible occasion. They’re just exhausted with the whole thing, and it’s not something that’s going to go away as long as they keep doing this. This is something that the public is going to react to negatively.”

And while these businesses can survive a good bit of public pressure, “The question is, how long does management survive?” Soukup asked. “How long do the boards and the shareholders agree to keep Bob Iger on, for example, if he doesn’t get it — if he continues to pursue the agenda that got Disney into trouble in the first place? … He may have built Disney into a giant entertainment company, and he may be the nicest man in entertainment, as everybody says. But … eventually, the Disney board and Disney shareholders are going to get tired of what he’s doing and his inability to recognize that he’s a big part of the problem.”

For now, the biggest takeaway is that Americans are finally sending a message companies can’t ignore. Sure, some CEOs will stubbornly carry on, willing to kamikaze their brands for radical causes, but there are plenty of rational executives who see the writing on the wall.

“I think it’s pretty clear that the general zeitgeist in American business is to depoliticize as much as possible at this point,” Soukup pointed out. “Sometimes that’s going to be very difficult, given positions that have been taken just in the last three, four, five years. But I think that a great many executives and managers have seen just how potent customer reaction can be.” And that’s a significant change from decades past.

“It used to be the case that nobody feared conservative consumers very much because conservative boycotts always failed. I don’t think that’s the case anymore. I think that even though these are not organized boycotts, they have been very effective — and they have certainly sent a message to the companies that have been affected and to others who might go down that same road. … To use The Godfather analogy, these guys are Luca Brasi [sleeping] with the fishes. They’re the warning to the rest of business that if you push this too far, you will end up the same way. So I think that what we’re starting to see among a great many corporate leaders is a desire simply to get out of the politics business.”

Whether Disney ever wakes up and joins them is anyone’s guess. Until then, Soukup advises, make the most of this Christmas season: “Vote with your dollars and invest with your dollars.”

AUTHOR

Suzanne Bowdey

Suzanne Bowdey serves as editorial director and senior writer at The Washington Stand.

EDITORS NOTE: This Washington Stand column is republished with permission. All rights reserved. ©2023 Family Research Council.


The Washington Stand is Family Research Council’s outlet for news and commentary from a biblical worldview. The Washington Stand is based in Washington, D.C. and is published by FRC, whose mission is to advance faith, family, and freedom in public policy and the culture from a biblical worldview. We invite you to stand with us by partnering with FRC.