Are Store Shortages and Empty Shelves On Purpose?

At Issues & Insights, "As Shortages Persist Under Biden, It’s Time To Ask: Is This On Purpose?"

Did the United States suddenly become a socialist basket case? It’s hard not to come to that conclusion after reading about the endless shortages plaguing the nation. Each of which President Joe Biden either seems clueless to resolve or determined to make worse.

Let’s start with the biggest one: the shortage of diesel fuel. While Biden was busy draining the Strategic Petroleum Reserve to tamp down gas prices before the midterm elections, the real worry was that supplies of diesel fuel have been running short.

Two years after the short-lived COVID lockdowns ended, diesel inventories continued to trend downward to their lowest levels since 2008. The cost for a gallon of diesel fuel is 46% higher than it was a year ago, according to AAA, and now costs more than $5 a gallon.

That affects every corner of the economy because, while passenger cars mostly use regular gasoline, diesel powers just about everything else that makes the economy move, and many homes, especially in the northeast, rely on heating oil – a related product – to keep their families from freezing to death...

RTWT.

 

'Biden: Releasing 15 Million More Barrels of Oil Reserves Right Before Election ‘Not Politically Motivated at All!’'

From Ed Driscoll, at Instapundit, a huge roundup, "GREAT MOMENTS IN MALARKEY."

Russia Nationalizes ExxonMobil's Holdings in Sakhalin-2 Oil and Gas Project at Sakhalin Island, Russia

This should be front-page news everywhere. 

ExxonMobil wrote down $3.4 billion relating to it's exit from the Sakalin-2 development. 

I'm gobsmacked at stories like this. We've toppled Third World regimes for less. And now? The war in Ukraine drags on and on in its ugly attrition stalemate. How many times are we going to hear, "Ukraine Forces Make Gains in Zaporizhzhia!," or whatever? *Eye-roll.*

At the Wall Street Journal, "Russia Wipes Out Exxon’s Stake in Sakhalin Oil-and-Gas Project":

Energy company says it has left the country after Moscow transferred its holding to Russian entity.

The Kremlin has pushed Exxon XOM 0.18%▲ Mobil Corp. out of a major Russian oil-and-gas project and transferred the Texas oil giant’s stake to a Russian entity, according to the U.S. company.

Moscow blocked Exxon’s efforts to transfer operatorship and sell its 30% stake in the Sakhalin-1 venture in Russia’s Far East for months, and has now wiped out Exxon’s stake entirely. Exxon on Monday described Moscow’s move as expropriation and said it had pulled out of Russia.

The Kremlin didn’t provide any indication that it would pay Exxon for the value of its stake. Exxon said it has left its legal options open under its production-sharing agreement and international arbitration law. If the company pursues legal action, the matter could take years to resolve.

The largest U.S. oil company vowed in March to leave Russia shortly after the invasion of Ukraine, saying it would make no further investments in the country. It had cultivated ties with Russia for decades, but had withdrawn from at least 10 other joint ventures after the U.S. and its allies imposed sanctions on Russia following its 2014 invasion of Crimea. Sakhalin-1 hadn’t been covered by those sanctions.

Exxon declared force majeure in April, and reduced production from the Sakhalin Island development to about 10,000 barrels of oil and natural gas a day, from 220,000. It also took a $3.4 billion accounting charge related to its Russia exit in the first quarter.

European oil companies with interests in Russia have also worked to exit from the country. In February, Shell SHEL 0.06%▲ PLC said it would exit the Sakhalin-2 venture, another oil-and-gas project in Russia’s Far East, and BP BP 0.00%▲ PLC said it would exit its nearly 20% stake in state-run Rosneft.

Exxon’s exit was particularly complicated because it operated the project and is responsible for safety and environmental measures. The project hasn’t been fully shut down, in part because it provides power to the residents of Sakhalin Island, which is an environmentally sensitive area. Finding a counterparty capable of handling the complex project had been a difficult task. Exxon had operated Sakhalin-1 since the 1990s.

“Our priority all along has been to be a responsible operator by protecting employees, the environment and the integrity of operations at Sakhalin-1,” Exxon spokeswoman Meghan Macdonald said.

Reuters reported Exxon’s exit earlier Monday.

Exxon and its partners had a production-sharing agreement in place since the 1990s. Exxon Neftegas Ltd., a unit of the U.S. oil company, owned 30% of the project and was its operator. Rosneft owns 20%, while Japan’s Sodeco and India’s ONGC Videsh separately own portions.

Exxon expects about 700 employees of its Russian unit to transition to the new operator.

A decree from President Vladimir Putin this month handed Exxon’s stake to a newly created Russian company and said Exxon and other foreign partners of the Sakhalin-1 consortium could apply for ownership in the new entity. Exxon’s exit signals it has no plans to apply for ownership in the project...

Saudi Arabia Defied U.S. Warnings Ahead of OPEC+ Production Cut

The Saudis apparently coordinating a cut in production in both countries, at a time when the global economy needs the opposite.

At the Wall Street Journal, "Riyadh dismissed American officials who said the output reduction would be perceived as siding with Russia, in a new blow to relations":

RIYADH, Saudi Arabia—Days before a major oil-production cut by OPEC and its Russia-led allies, U.S. officials called their counterparts in Saudi Arabia and other big Gulf producers with an urgent appeal—delay the decision for another month, according to people familiar with the talks. The answer: a resounding no.

U.S. officials warned Saudi leaders that a cut would be viewed as a clear choice by Riyadh to side with Russia in the Ukraine war and that the move would weaken already-waning support in Washington for the kingdom, the people said.

Saudi officials dismissed the requests, which they viewed as a political gambit by the Biden administration to avoid bad news ahead of the U.S. midterm elections, on which control of Congress hangs. High gas prices and inflation have been central issues in the campaign.

Instead, the people said, the kingdom leaned on its OPEC allies to approve the cut, which is aimed at reducing production by 2 million barrels a day.

Adrienne Watson, a National Security Council spokeswoman, rejected Saudi contentions that the Biden administration efforts were driven by political calculations. U.S. officials questioned a Saudi analysis that the price of oil was about to plunge and urged them to wait and see how the market reacted. If the price did collapse, U.S. officials told their Saudi counterparts, OPEC+ could react whenever they needed.

“It’s categorically false to connect this to U.S. elections,” Ms. Watson said. “It’s about the impact of this shortsighted decision to the global economy.”

Since the OPEC+ decision, the White House vowed to fight OPEC’s control of the energy market. Lawmakers from across the political spectrum called on the U.S. to cut off arms sales to Saudi Arabia. And U.S. officials started looking for ways to punish Riyadh.

In one of its first responses, U.S. officials said, the Biden administration is weighing whether to withdraw from participation in Saudi Arabia’s flagship Future Investment Initiative investment forum later this month. According to people familiar with the matter, the U.S. has pulled out of a working group meeting on regional defenses next week at the Gulf Cooperation Council, based in Saudi Arabia.

Mr. Biden’s visit to Saudi Arabia in July was meant to repair relations after the president entered office with a vow to treat the kingdom as a pariah over human rights, particularly the 2018 killing of Saudi journalist Jamal Khashoggi at the hands of Saudi agents.

Images of the president’s fist bump with Crown Prince Mohammed bin Salman became a polarizing symbol of the trip.

But according to people inside the Saudi government, Mr. Biden’s July visit did little to change Prince Mohammed’s determination to chart a foreign policy independent of U.S. influence, in a break from almost 80 years of American-Saudi partnership.

If anything, said the people inside the Saudi government, the visit angered Prince Mohammed, who was upset that Mr. Biden went public with his private comments to the Saudi royal over Mr. Khashoggi’s death, which prompted Saudi officials to publicly contradict Mr. Biden’s characterization of their interaction.

U.S. officials said they saw no indications in their talks with Saudi leaders in recent months that Mr. Biden’s comments about Mr. Khashoggi had been damaging to ties...

 

Joe Concha, Come On Man!

At Amazon, Joe Concha, Come On, Man! The Truth About Joe Biden's Terrible, Horrible, No-Good, Very Bad Presidency.

Economic Issues Outweigh Concerns About Rights in Midterm Vote

Well, you would think. (*Eye-roll.*)

From Monmouth, "Biden gets poor marks on handling pivotal issues":

West Long Branch, NJ – Economic issues are a bigger factor in this year’s midterm elections than concerns about rights and democracy, according to the latest Monmouth (“Mon-muth”) University Poll. Democrats prioritize a fairly wide range of issues from climate change to abortion, while Republicans focus on a more limited set including inflation, crime, and immigration. Independents, though, tend to hone in on one issue above all: rising prices. Further dampening Democrats’ prospects are the poor numbers President Joe Biden gets for his performance on the issues most important to independents.

Republicans have made slight gains in the public’s preference for party control of Congress since the summer. Currently, 36% of Americans say they want the GOP in charge and another 11% have no initial preference but lean toward Republican control. Democratic control is preferred by 34% with another 10% leaning toward the Democrats. The combined 47% who choose Republican control is up from 43% in August, while the 44% support level for Democratic control is down from 50%.

A majority (54%) of Americans say it is very important to have their preferred party in control of Congress. This control importance metric is slightly higher among those who want Republicans (62%) than those who want Democrats (58%) leading Congress, which is a flip of the partisan result for this question in last month’s poll. Similarly, those who want Republican leadership (65%) are somewhat more likely than those who want Democrats in charge (58%) to say they are extremely motivated to vote this year.

“Because the congressional map favors the GOP, Democrats need to do more than ‘keep it close’ in order to hold onto their House majority. One roadblock for them is that the issue picture favors Republicans,” said Patrick Murray, director of the independent Monmouth University Polling Institute.

The poll asked about the importance of 12 issue areas for the federal government to address. Those rated either extremely or very important by the largest number of Americans include inflation (82%), crime (72%), elections and voting (70%), jobs and unemployment (68%), and immigration (67%). The next tier of issue concerns includes transportation and energy infrastructure (57%), abortion (56%), racial inequality (53%), gun control (51%), and climate change (49%). The least important issues for federal government action right now are the Covid pandemic (32%) and student loan debt (31%). About 8 in 10 Republicans put inflation, crime, and immigration at the top of their issue list. A similar number of Democrats prioritize climate change, racial inequality, elections and voting, gun control, and abortion, with about 3 in 4 also giving emphasis to jobs and inflation. However, the only issue which more than 3 in 4 independents place high importance on is inflation. Additionally, independents are more concerned about overall economic issues along with crime and immigration than they are by other issues.

When asked which group of issues is more important in their support for Congress this year, concerns about the economy and cost of living (54%) outpace concerns about fundamental rights and democratic processes (38%) among all Americans. Republicans prioritize the economy (71%), while Democrats prioritize rights (67%). Independents are more likely to give preference to economic issues (61%) than concerns about rights and democracy (29%).

“Democrats are all over the place when it comes to their key issues. This makes it difficult for the party to create a cohesive messaging strategy to motivate its base. Republicans, on the other hand, just have to hammer away at rising prices and ‘the wolf is at the door’ to get their voters riled up,” said Murray. He added, “A major problem for Democrats is their base messaging doesn’t hold as much appeal for independents as the GOP issue agenda does. Even though truly persuadable independents are a rather small group these days, this small difference can have a major impact given the expectation that congressional control will hinge on a handful of very close contests.”

Perception of President Biden’s performance on these key issues is not helping the Democratic cause. The only issue where he gets a net positive rating is handling the Covid pandemic (50% approve and 47% disapprove) – which is one of the public’s lowest priority issues right now. Only 3 in 10 Americans approve of the job Biden has done on the nation’s top concern – inflation (30%) – as well as other concerns that Republicans are focused on – i.e., crime (32%) and immigration (31%). Biden also gets similarly low marks on abortion (31%) and gun control (30%) – two issues that are important to Democrats. About 4 in 10 approve of the president’s performance on other issues covered in the poll.

Democrats are about twice as likely as independents – and many multiples more likely than Republicans – to give Biden high marks for handling each of these issues. Still, Democrats are relatively less prone to approve of the president’s performance on crime, inflation, abortion, immigration, and gun control – between 61% and 69% – when compared with the other seven issues covered in the poll. Biden gets between 77% and 82% approval from his fellow Democrats on these issues, except for Covid where he earns nearly universal approval (91%).

“Obviously, the Republicans are hitting away at issues where Biden – and by extension the Democratic Party – is weakest. But it’s also worth noting that Biden does not provide a rallying point for Democratic voters on some of the issues, such as abortion, that his party is leaning on to motivate its own base,” said Murray...

Keep reading (via Memeorandum). 

The Day After One of His Cultists Murders What He Claims Is an 'Extremist Republican' 18-Year-Old Boy, Joe Biden Urges His Demented Followers to ... 'Fight Extremist Republicans'

 At AoSPHQ, "Via Twitchy, despite having just incited one of his crazed followers to murder a teenager in the name of "fighting Republican Extremists," Joe Biden put out a statement telling his cultists to... fight Republican extremists some more."

Fentanyl Crisis Is an International Attack on America

From Greta Van Susteren, "Fentanyl crisis is an international attack on America. We must fight back":

Nearly 3,000 people were murdered on 9/11 by terrorists who entered the United States. Immediately, our government took action to prevent future attacks and protect Americans. We tightened security. We put checkpoints in our airports – and we began special screening procedures for people entering America from overseas. We changed our cockpit access. We created "no fly" lists. We didn’t just sit there and hope that the threat would go away.

After COVID-19 surfaced in January 2020, it was quickly apparent that our nation was again under attack, very much like that sunny Tuesday morning in September 2001. Except that this time the culprit was a virus from abroad. To respond, our government – and governments around the world – took similar decisive action to slow the spread. The United States and other nations temporarily closed their borders and restricted international travel until we could fully identify the problem and get this enemy under control. When travel reopened, we created new checks and tests to try to prevent infections from overwhelming our health care systems, until we had treatment options and a less lethal form of the coronavirus.

Yet when it comes to a third enemy coming from abroad, one that killed more than 71,000 Americans last year – many of them young people – our government is relying on outdated tactics and old ideas.

Fentanyl kills 195 Americans every day

I am talking about the fentanyl crisis, which is killing 195 Americans a day – one of those is country singer Luke Bell, who recently died of an accidental fentanyl overdose.

Fentanyl is a synthetic opioid that is 50 times stronger than heroin and up to 100 times more potent than morphine, according to the U.S. Centers for Disease Control and Prevention. A lethal dose may be as small as 2 milligrams.

When used illicitly, it can kill on the first use. The raw ingredients for illegal fentanyl come from China and are then sent to Mexico, where they are often pressed into pills – including what appear to be legitimate prescriptions like Xanax and valium or prescription pain medication. They could also be made into a powder, or combined with other illegal drugs to lower the cost and create a bigger “high” – a grisly imitation of putting fillers into foods to cut costs.

In one weekend, Sept. 17-18, U.S. Customs and Border Protection officers in Nogales, Arizona, confiscated about 400,000 fentanyl pills arriving from Mexico.

Are fentanyl deaths 'overdoses'? Or 'murders'?

Legitimate fentanyl is used in medical settings, but illicit fentanyl is different. We politely label fentanyl deaths “overdoses,” but a truer term would be “poisonings” – or, given the explosive rise in deaths over the past few years, “murders.”

Fentanyl kills far more Americans each year than gun violence. More and more schools around the nation have “Narcan stations,” the rescue drug that can reverse a fentanyl overdose.

According to the National Institute on Drug Abuse, law enforcement seized nearly 10 million fentanyl-laced pills last year, an astronomical rise from the fewer than 300,000 pills seized in 2018.

And what is our federal response to this deadly killer coming into our country?

When it comes to fentanyl, drug control is too late

The Biden administration is asking Congress for $42.5 billion for drug control programs – $3.2 billion more than this year. But when it comes to fentanyl, drug control – which is predominantly a combination of prevention and rehab strategies – is too late.

Fentanyl poisoning is often a one-time mistake. A teenager ingesting a fentanyl-laced pill does not simply become an addict needing rehab. Too often, tragically, all we can offer their family is a funeral home.

Last January, a 16-year-old high school sophomore and junior varsity basketball player in Bethesda, Maryland, died in a bathroom in his home after taking what turned out to be a counterfeit Percocet pill, laced with fentanyl. The pills were sold to him by a 23-year-old, according to Montgomery County police.

What about interdiction? The administration did set aside $275 million to disrupt drug trafficking across the nation through law enforcement programs. But by that time, fentanyl is already inside the USA.

It’s past time for all of us, Washington included, to uncover our eyes and see the situation for what it is: an international attack on our people...

 

Washington Post: Americans 'Resigned' to Inflation, 'Feeling Better' About Dealing With It

 Yeah, I'm sure.

At AoSHQ, "Funflation!"

President Biden's Primetime 'Soul of the Nation' Address Demonizes Tens of Millions of Americans (VIDEO)

If you're going to attack "MAGA Republicans" in a primetime address to the nation on the Donald Trump GOP's threats to democracy, just know that you're literally attacking millions upon millions of voters who pulled the lever for the Donald in 2020 (not to mention 2016). 

No, not everyone who voted for Trump was MAGA, and Old Joe (Stalin?) duly slides that in as an afterthought. No, he attacked the movement for America First principes as the most dangerous threat to our nation today. Really? That movement includes untold red-blooded patriotic Americans who have nothing to do with any of the "violence" the president decries. Biden makes no clear distinction. I mean, shoot, you don't need to put "MAGA" in front of "Republicans." They're all evil for leftist totalitarians. 

Anyone with a brain knows this is all politics, not abouit saving the union from incipient fascist tyranny. Biden's screed was a pre-midterm salvo to demonize the opposition, MAGA or not. That's it. The media's the bullhorn: You know, "Democracy Dies in Darkness" and all the other bullshit posituring by our elite betters in America's newsrooms. It's disgusting and should be repudiated, and with luck it will be in November. Don't trust the polls. Sure, leftists have been mobilized by the pro-life Dobbs ruling in June, but it's not the poor and down and out, who are destitute, homeless, mentally ill, drug-addled, and on Medicaid, public assistance, and SSI. 

Nope, it's white, wealthy "progressive" women. They're the one's who're pissed off, and they're driving this so-called surge of pro-choice voter agitation. They don't give a shit about the poor. They're craven virtue-signalers who claim they're better than you (they're not). 

Biden? His speech? THIS IS WHY AMERICANS HATE POLITICS.

See, Roger Kimball, at the Spectator, "Biden Declares War on Half the Country":

The malignant and divisive spirit of his speech will not soon be quelled.

Joe Biden’s speech at Philadelphia’s Independence Hall on Thursday was one of the most remarkable in living memory. By “remarkable,” I hasten to add that I do not mean “good.” On the contrary, it was a breathtaking act of what the psychoanalysts call “projection,” blaming others for the bad things you do yourself.

The speech itself was a malignant act of demagoguery that will have colonels and generalissimos everywhere catching their breath with envy. The neo-totalitarian stage set, replete with red lighting effects and military personal flanking the shouting, gesticulating Biden, was right out of central casting. Next time, perhaps Biden will wear epaulettes along with his signature aviators.

The speech was billed as a reflection on the “soul of the nation.” Remember, Biden was sold to the country as Mr. Normality, as someone who would bind up the nations’s wounds after four years of the bad, horrible, no good, unacceptable, supremely divisive Donald Trump.

It hasn’t worked out that way, notwithstanding Trump’s occasional zingers and rhetorical molotov cocktails that have kept the fires of outrage burning. In this respect, Biden’s speech typified the new Democratic dispensation, according to which the world is divided sharply in two. The good guys are those who espouse the Democratic agenda. The bad guys are anyone who dissents. What we are seeing, in fact, is the promulgation of a neo-Manichean philosophy. That heretical sect, named for a third-century A.D. Parthian seer called Mani, was an astringently dualistic creed that divided the world into light and dark, the saved and the damned. According to the creed of Biden and the elites who formulate his thoughts and speeches, the radical Democratic agenda of climate change, “green” intimidation, wealth redistribution, and sexual perversion is the gospel of light. Outer darkness is occupied by people who espouse such traditional American values as hard work, frugality, patriotism, individual liberty, and the canons of private property that guarantee those rights. It is a strange and unforgiving religion, one whose primary sacrament is excommunication. Ultimately, as some wag put it, its goal is a world in which everything that is not prohibited is mandatory.

That is the background. You often hear the world “democracy” uttered in these heady precincts, usually in the now-noxious phrase “our democracy” (translation: their prerogative”). As I note in a column on “Joe Biden and the Sovietization of America” for the October edition of the Speccie, it is a world in which “democracy” really means “rule by Democrats.” To the question “was the election fair,” what you need to know in order to answer is who won. If it was the Democrats, then the election was fair. If the Democrats lost, then the election was stolen.

In any event, Biden’s speech consisted of a series accusations directed at “Donald Trump and the MAGA Republicans [who] represent an extremism that threatens the very foundations of our Republic.”

Lest you think that attack on 74 million Trump supporters was an aberration, note that a week earlier at a Maryland fundraiser, Biden had insisted that the problem for those wishing to conserve the “soul of America” was “not just Trump, it’s the entire philosophy that underpins the…semi-fascism” of the MAGA agenda.

The sweeping denunciation of half the country was perhaps the thing that caught the alarmed attention of most observers. Also important was that element of projection I mentioned. Biden’s brief against Trump and “the entire philosophy” of MAGA rested primarily on three accusations...

 Keep reading.

Moscow’s Struggle to Sustain Its War in Ukraine

At Foreign Affairs, "Is Russia’s Economy on the Brink?":

In April, just weeks after he launched the invasion of Ukraine, Russian President Vladimir Putin maintained that the West could never strangle Russia’s economy. The barrage of American and European sanctions had not succeeded and would not succeed in bringing his country to its knees. “We can already confidently say that this policy toward Russia has failed,” he told his officials. “The strategy of an economic blitzkrieg has failed.”

Such defiant posturing can be expected of Putin and other Russian leaders. But now, six months after the beginning of the war and the imposition of sanctions, many observers are questioning whether Western sanctions have had the tough effects their architects promised. International observers such as the International Monetary Fund have revised their projections of Russian GDP upward from earlier this year. Compared with initial forecasts made right after the imposition of sanctions, Russia’s economy has done better than expected, partly because of deft technocratic Russian policymaking and partly because of tight global energy markets, which have kept the price of oil and gas high.

Russia’s economic overperformance must be placed in context, however. Few observers and policymakers expected sanctions to cause enough pain to force Russia out of the conflict in a matter of months, so Russia’s ongoing war shouldn’t be a surprise. Yet Russia’s economy is still hurting; it is suffering a steeper growth slowdown than was seen during the 2008 financial crisis and one that is unlikely to be followed by a postcrisis rebound. Living standards are being supported by social spending that will be difficult to sustain and that will likely force tough decisions about the government budget over the coming year. Thus far, Putin has promised Russians that he’s fighting a “special military operation,” not a war that could impose tough sacrifices on the population. As time passes, however, the cost of the war and the effects of sanctions on ordinary Russians will only grow.

BELTS TIGHTEN IN RUSSIA

For a health check on the Russian economy, start with some macroeconomic data. Russia’s GDP has shrunk by around five percent compared with last year, with the rate of decline increasing each month since the war began. Industrial production, which includes Russia’s oil and gas industries, has fallen by only about two percent compared with last year (a reflection of high energy prices), although the manufacturing segment of Russian industry has fallen by 4.5 percent. Inflation stands at just over 15 percent, down somewhat from the nearly 18 percent peak after the ruble slumped, then recovered, in March. Adjusted for inflation, monthly wages are down by about six percent compared with last year. (Some analysts have expressed skepticism about Russia’s official data, yet there is no evidence that the state statistics agency is engaged in large-scale manipulation.)

Russia’s inflation statistics may not fully capture the reality that buying certain products is now occasionally difficult (in the case of iPhones) or nearly impossible (in the case of Lexus automobiles). Similarly, inflation data struggle to quantify the impact of reduced quality. Russia’s government, for example, is changing regulations to allow the sale of vehicles without airbags or antilock brakes, which are now difficult to produce because of sanctions-induced supply chain problems. This degradation in quality won’t show up in inflation data, but it will eventually be felt by Russians, especially the urban, wealthier Russians who consume more of the imported goods that are now harder to access.

Even accounting for the inflation captured by government statistics, wages are trending sharply downward, around six percent lower compared with last year. Social welfare payments such as pensions, which are the primary income source for older Russians, have been eroded by inflation since the war began. The government increased pension payouts by over eight percent in June to compensate, but without more such expensive social spending increases in the coming months, the typical Russian’s income will decline in the second half of the year. The fact that retail sales are down by nearly ten percent suggests that consumers have already started saving in anticipation of tighter budgets to come.

THE OIL KEEPS FLOWING

Although households are only just beginning to feel the impact of lower living standards, some industries have already been hit hard. Rather than looking at aggregate industrial production data, which include both raw materials and manufacturing firms, it is more insightful to analyze each sector separately. The raw materials sector has been only slightly affected, which is no surprise given that prices are high and that Western sanctions have been designed to keep most commodities, thus far including oil, flowing freely.

The Russian economy owes much of its resilience to its trade in natural resources. With quiet diplomatic support from the United States, the United Kingdom and the EU have been watering down sanctions that were supposed to take effect against Russian oil exports later this year. To keep energy prices from spiking, the West has backed away from some efforts to stop Russia from redirecting oil exports to other customers, such as China and India. Now, under recent tweaks to sanctions, European firms will be allowed to ship Russian oil to third parties.

Because the West has implemented few significant sanctions on Russia’s oil and gas exports, and because the EU’s oil import ban doesn’t take effect until December, the volume of Russian oil exports is basically unchanged since sanctions were imposed. Sanctions are now forcing Russia to sell oil at around a $20 per barrel discount to global benchmark prices. Still, the latest monthly data that Russia’s government released on its revenue from taxing oil suggest the country is making roughly as much in export revenue as it did in January. By contrast, revenues from the export of natural gas—far less important to Russia than oil exports—have slumped after the Kremlin restricted its sale to Europe.

INDUSTRIAL WOES

Unlike Russia’s energy industry, the rest of Russia’s industrial sector has been hit hard. Among the worst affected sectors have been cars, trucks, locomotives, and fiber optic cables, each of which has seen production fall by over half. In other sectors less exposed to foreign ownership or complex supply chains, such as textiles or food processing, production is flat or in some cases has increased relative to last year.

One cause of this industrial disruption is the withdrawal of Japanese, U.S., and European firms that had factories in Russia. Some of these factories will reopen under new Russian ownership, but operating them independently may prove difficult. Manufacturers are also struggling to source necessary materials. Accessing components from abroad is now far trickier, because even products not under formal restrictions are harder to access, ship, and pay for. “I cannot say we’re facing a total blockade,” the CEO of Transmashholding, a Moscow-based railroad equipment firm, told Russian media, referring to the difficulties his firm has in shipping and paying for imported components. “But we face increased friction.”

A key question over the coming months is whether these industrial disruptions intensify or are resolved. On the one hand, Russia has now had nearly half a year to establish alternative payments and logistics networks, which should allow some crucial nonsanctioned imports to reach the country. On the other hand, Russian firms when surveyed say they are continuing to draw from existing inventories, implying that they are still struggling to source necessary components. Monthly data show that Russian imports of industrial goods and components remain far below prewar levels...

Still more.

 

Biden Will Summon His Supporters to Wage a War For the 'Soul of the Nation' Against Republicans Who Are 'Semi-Fascists' and a 'Threat to Democracy'

At AoSHQ, "If someone starts talking about political violence, and you try to talk him down, he'll say 'This country was founded upon revolutionary violence' and something like 'The right of the people to rebel against a tyrant is written out in black and white in the Declaration of Independence'."

Ukraine War Is Depleting U.S. Ammunition Stockpiles, Sparking Pentagon Concern

At WSJ, "The level of one type of combat rounds in storage is ‘uncomfortably low,’ says a defense official":

WASHINGTON—The war in Ukraine has depleted American stocks of some types of ammunition and the Pentagon has been slow to replenish its arsenal, sparking concerns among U.S. officials that American military readiness could be jeopardized by the shortage.

The U.S. has during the past six months supplied Ukraine with 16 U.S. rocket launchers, known as Himars, thousands of guns, drones, missiles and other equipment. Much of that, including ammunition, has come directly from U.S. inventory, depleting stockpiles intended for unexpected threats, defense officials say.

One of the most lethal weapons the Pentagon has sent are howitzers that fire high-explosive 155mm ammunition weighing about 100 pounds each and able to accurately hit targets dozens of miles away. As of Aug. 24, the U.S. military said it had provided Ukraine with up to 806,000 rounds of 155mm ammunition. The U.S. military has declined to say how many rounds it had at the start of the year.

In recent weeks, the level of 155mm combat rounds in U.S. military storage have become “uncomfortably low,” one defense official said. The levels aren’t yet critical because the U.S. isn’t engaged in any major military conflict, the official added. “It is not at the level we would like to go into combat,” the defense official said.

The U.S. military used a howitzer as recently as last week to strike at Iranian-backed groups in Syria, and the depletion of 155mm ammunition is increasingly concerning for a military that seeks to plan for any scenario.

The Army said the military is now conducting “an ammunitions industrial base deep dive” to determine how to support Ukraine while protecting “our own supply needs.” The Army said it also asked Capitol Hill for $500 million a year in upgrade efforts for the Army’s ammunition plants. Meanwhile, the service is relying on existing contracts to increase production of ammunition, but it hasn’t signed new contracts to account for the higher amounts it will need to replenish its stocks, according to Army officials.

Chairman of the Joint Chiefs of Staff Army Gen. Mark Milley has been conducting monthly reviews of the U.S. arsenal to determine whether the readiness levels are still appropriate given the needs for the ammunition in Ukraine, according to U.S. military officials. The U.S. last week provided Ukraine with a different size howitzer ammunition, 105mm, a reflection, in part, of the concern about its stocks of 155mm ammunition, the officials said.

The looming ammunition shortage isn’t for lack of funds, according to those familiar with the issue. The U.S. announced this week that it was setting aside nearly $3 billion for long-term aid intended to help Ukraine, bringing the total spent on weaponry for the country to $14 billion, and the Biden administration’s Pentagon budget request for next year is $773 billion.

“This was knowable. It was foreseeable. It was forewarned, including from industry leaders to the Pentagon. And it was easily fixable,” said Mackenzie Eaglen, a senior fellow at the American Enterprise Institute, a think tank in Washington.

What is needed, she said, is for the government to spend money to fix the problem.

“There are some problems you can buy your way out of,” she said. “This is one of them.”

The Pentagon’s buying process generally starts with the military determining its requirements, which are then reviewed and then bids solicited from the private sector. But since Russia’s invasion of Ukraine in February, industry officials have complained that the Pentagon hasn’t always communicated those requirements, which often change, creating delays, and leaving defense contractors unable to prepare for more production.

Dormant supply lines often can’t be switched on overnight, and surging production of active lines can take time. Companies are already producing 155mm ammunition, but not at the capacity yet that the Pentagon will need to replenish its stocks...

 

Student Debt Forgiveness Will Make the Problem Worse (VIDEO)

Here's the beautiful Inez Feltscher Stepman (currently my crush on Twitter), for Prager Univerity:

The Mar-a-Lago Affidavit: Is That All There Is?

At the Wall Street Journal, "The redacted 38-pages add to the evidence that the FBI search really was all about a dispute over documents":

A federal judge on Friday released a heavily redacted version of the FBI affidavit used to justify the search of Donald Trump’s Mar-a-Lago home, and we can’t help but wonder is that it? This is why agents descended on a former President’s residence like they would a mob boss?

It’s possible the redactions in the 38-page document release contain some undisclosed bombshell. But given the contours of what the affidavit and attachments reveal, this really does seem to boil down to a fight over the handling of classified documents. The affidavit’s long introduction and other unredacted paragraphs all point to concern by the FBI and the National Archives with the documents Mr. Trump retained at Mar-a-Lago and his lack of cooperation in not returning all that the feds wanted.

A separate filing making the case for the redactions, also released Friday, focused on the need for witness and agent protection from being publicly identified. That filing also contains no suggestion of any greater charges or a larger investigation than the dispute over his handling of the documents.

As always with Mr. Trump, he seems to have been his own worst enemy in this dispute. He and his staff appear to have been sloppy, even cavalier, in storing the documents. Classified records found in boxes were mixed in with “newspapers, magazines, printed news articles, photos, miscellaneous print-outs, notes,” and presidential correspondence, the affidavit says. This fanned suspicion that important documents were still floating around the house, where bad actors hanging around the Mar-a-Lago resort might pilfer them.

The affidavit also contains references to comments by Mr. Trump and his associates that didn’t tell the truth about what was classified or what he had turned over to the National Archives before the search. This appears to have frustrated the bureau enough that it felt he might be guilty of obstruction of justice by his lack of cooperation. To put it another way, the FBI thought Mr. Trump was behaving badly, as he so often does.

But that didn’t mean the FBI and Justice Department had to resort to a warrant and federal-agent search that they knew would be redolent of criminal behavior. They had to suggest probable cause of criminal acts to get their extravagant warrant, which they knew would create a political firestorm.

Instead they could have gone to a district court and sought an order for the proper handling and storage of documents. It surely would have been executed. If Mr. Trump then failed to comply, he could have been held in contempt. On the evidence in the warrant and the affidavit, and even based on the leaks to the press so far which all focus on the demand for documents, the search on Mar-a-Lago was disproportionate to the likely offense...

 

Republicans, Once Outraged by Mar-a-Lago Search, Become Quieter as Details Emerge

 At the New York Times: 

In the minutes and hours after the F.B.I.’s search of former President Donald J. Trump’s residence in Florida this month, his supporters did not hesitate to denounce what they saw as a blatant abuse of power and outrageous politicization of the Justice Department.

But with the release of a redacted affidavit detailing the justification for the search, the former president’s allies were largely silent, a potentially telling reaction with ramifications for his political future.

“I would just caution folks not to draw too many conclusions,” Gov. Glenn Youngkin of Virginia, a Republican, said on Fox News. It was a starkly different admonition from his earlier condemnations of what he said were “politically motivated actions.”

Some Republicans will no doubt rally around Mr. Trump and his claim that he is once again being targeted by a rogue F.B.I. that is still out to get him. His former acting White House chief of staff, Mick Mulvaney, said on Twitter that “this raid was, in fact, just about documents,” which he called “simply outrageous.” Representative Andy Biggs, Republican of Arizona and an ardent Trump ally, was on the right-wing broadcaster Newsmax denouncing the F.B.I. as politically biased, though he notably did not defend the former president’s possession of highly classified documents.

But generally, even the most bombastic Republicans — Representatives Marjorie Taylor Greene of Georgia, Lauren Boebert of Colorado, Jim Jordan of Ohio — were at least initially focused elsewhere. Ms. Greene was posting on Friday about border “invasions.” Ms. Boebert noted on Twitter the anniversary of the suicide bombing of U.S. service members at the airport in Kabul, Afghanistan. Mr. Jordan was focused on an interview with Mark Zuckerberg, the Facebook founder. None tweeted about the affidavit.

The accusations against Mr. Trump have become increasingly serious. Classified documents dealing with matters such as Mr. Trump’s correspondences with the North Korean leader Kim Jong-un were stored in unsecured rooms at Mar-a-Lago, The New York Times reported this month. The untempered attacks on the F.B.I. after the initial search led to threats against federal law enforcement, opening up Republicans — long the self-proclaimed party of law and order — to charges from Democrats that they were trying to “defund” the agency.

And voters are again distracted by Mr. Trump in the political spotlight, even as Republicans try to direct their attention toward the economy and soaring inflation on a day when the Federal Reserve chairman Jerome Powell said efforts to control rising prices would exact pain on Americans.

All of this could mean that enough Republican voters grow weary of the division and drama around Mr. Trump and are ready to move on...

 

White House Press Secretary Karine Jean-Pierre Smears Republcans as 'Fascists'

On Twitter:

If this is what they believe—and they do—how do they allow “fascists” and “attackers of our democracy” to vote at all? Do you understand that this is where it’s going? https://t.co/7ndezQC9HQ

— David Reaboi, Late Republic Nonsense (@davereaboi) August 27, 2022

Biden, Without Congressional Authority, Announces He's Forgiving Student Loans For His Voters -- And Claiming That the 'Emergency' Powers He Has Due to Covid Allow Him to Act As a Tyrant, Apparently Forever

PREVIOUSLY: "Biden's Student Loan 'Forgiveness' Is an Abuse of Power."

At AoSHQ, "Note that Biden already declared an end to the covid emergency when he canceled Trump's Remain in Mexico policy, and his CDC just announced that we're effectively back to normal. But Biden won't formally say the "emergency" is over -- so he can continue acting as tyrant when he finds it politically useful to do so."

Biden's Student Loan 'Forgiveness' Is an Abuse of Power

PREVIOUSLY: "Outrage! Biden to Cancel $10,000 in Student Debt for Those Making Less Than $125,000 or Less Per Year."

From Dave Harsanyi, at the Federalist, "… not to mention a moral hazard, counterproductive, and fundamentally immoral."

Outrage! Biden to Cancel $10,000 in Student Debt for Those Making Less Than $125,000 or Less Per Year

This is fucking outrageous.

My grad school loans are just now nearly paid off --- 23 years after I finished my Ph.D. at UCSB. Is Old Joe going to make the debt relief retroactive, for the millions upon millions of judicious and hard-working Americans who made good on the debt they took out? 

Completely un-American, Minority Leader Mitch McConnell slammed debt cancellation as "socialist."

At the Los Angeles Times, "Biden will cancel $10,000 of student debt for many borrowers":

Individuals earning less than $125,000 annually would qualify for relief and those who received Pell grants could receive an additional $10,000.

WASHINGTON — President Biden moved Wednesday to cancel $10,000 in student debt for individuals earning less than $125,000 annually while extending a pause on loan repayments for all borrowers through the end of the year, all as part of a broader effort to overhaul the federal system and ease financial burdens for the middle class.

Biden’s action will also make people who received Pell grants to help cover the cost of college eligible for up to $20,000 in loan relief. And a new income-based repayment cap will ensure borrowers pay no more than 5% of their monthly income toward their undergraduate loans as long as they aren’t behind on payments. Some analysts believe that change may prove even more significant than the debt forgiveness.

Lamenting that “an entire generation is now saddled with unsustainable debt” because the cost of higher education has skyrocketed in recent years, Biden described his action as a matter of economic fairness that will “provide more breathing room for people” and boost America’s competitiveness.

“My plan is responsible and fair. It focuses the benefit on middle-class and working families. It helps both current and future borrowers and it will fix a badly broken system,” Biden said. “It’s about opportunity. It’s about giving people a fair shot.”

The overall package, which Biden said will benefit 43 million Americans, is a win for activists who have pushed for such action as a matter of economic fairness. But the amount of debt Biden has decided to erase is less than many activists had sought, complicating an issue the White House hopes will boost Democrats in the midterm election and drawing criticism from both parties. While progressives had hoped Biden would go even further, Republicans and some moderate Democrats bristled at the price-tag, asserting that spending an estimated $400-600 billion to cover the forgiven loans would exacerbate inflation.

“This announcement is gallingly reckless — with the national debt approaching record levels and inflation surging, it will make both worse,” said Maya McGuinness, president of the Committee for a Responsible Federal Budget, a Washington organization that opposes the student loan forgiveness program.

Biden, who returned from a two-week vacation Wednesday morning, had vowed to act before Aug. 31, when the latest pandemic-driven moratorium on federal student loan payments runs out. He said this extension would be the last one and that payments would resume in January 2023.

“It’s time for the payments to resume,” he said.

President Trump first suspended payments in March 2020, and Biden has granted four extensions. So far, the suspensions have cost the federal government more than $100 billion. More than 40 million Americans owe a collective $1.6 trillion in federal student loans.

A fight over student loans could slow the Democrats’ recent momentum and threaten their coalition’s cohesion. The president and his party have seen their poll numbers rise in recent months, buoyed by a series of events that have altered the political landscape in their favor.

The Supreme Court’s late June decision overturning Roe vs. Wade alienated women across political lines. The high-profile hearings further illuminating Trump’s key role inciting the Jan. 6, 2021, Capitol insurrection received broad television coverage and hardened perceptions of Republicans as the more extreme party. And Democrats’ passage of three major bills — a climate, prescription drug and tax overhaul, new funding to boost domestic manufacturing of microchips and enhanced healthcare for veterans exposed to toxic chemicals on the battlefield — has shown the public that Biden is far from a do-nothing president.

Before the abortion decision, the Jan. 6 hearings and the flurry of new legislation, some senior Biden aides believed significant student loan debt forgiveness was one of the few measures that could excite the Democratic base and help the party survive a tough election cycle. Despite public and private pressure from Senate Majority Leader Charles E. Schumer (D-N.Y.) and Sens. Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.) and Raphael Warnock (D-Ga.), Biden has long questioned whether forgiving as much as $50,000 in debt would be prudent.

Schumer spoke by phone with Biden on Tuesday night “to make a final push to the president to cancel as much student loan debt as he can,” according to a Democrat familiar with the conversation. On Wednesday, Schumer and Warren sought to quell criticism from the left, issuing a joint statement heralding Biden’s final decision as a historic first step.

“With the flick of a pen, President Biden has taken a giant step forward in addressing the student debt crisis by cancelling significant amounts of student debt for millions of borrowers. The positive impacts of this move will be felt by families across the country, particularly in minority communities, and is the single most effective action that the President can take on his own to help working families and the economy,” their statement said. “No president or Congress has done more to relieve the burden of student debt and help millions of Americans make ends meet. Make no mistake, the work — our work — will continue as we pursue every available path to address the student debt crisis, help close the racial wealth gap for borrowers, and keep our economy growing.”

Some activists also cheered the announcement. “Today, with President Biden’s announcement, 12 million American borrowers have had their educational debts erased,” said Melissa Byrne, executive director of We the 45 Million, a group that advocates for student debt forgiveness. “This is a historic first step — establishing the clear authority that the president has to cancel student debt — but this should just be the beginning.”

But key Democratic constituencies, including young voters, Black Americans and civil rights groups like the National Assn. for the Advancement of Colored People, have pushed hard for more forgiveness, and may be disappointed.

Derrick Johnson, president of the NAACP, had blasted Biden in a statement Tuesday, stating that if reports of the president having settled on $10,000 in debt forgiveness are correct, “we’ve got a problem,” likening the decision to past federal policies that have been detrimental to Black people...

I took out zero loans for my Bachelor's degree. I worked, and hard. At Fresno State, where I took my B.A. political science, I worked 35 hours a week pumping gas at the local Chevon station, not far from my dad's house. It was 2:00 to 9:00pm Sundays through Thurdays, and 4:00pm to Midnight on Fridays and Saturdays. I started that job at $4.25 miniumum wage, only getting bumped once with a raise to $4.75. On my days off I'd stay on campus all day, after classes, going to the cafeteria, the library, and the student union to hang out and study. My time was completely taken up and I had little for nightlife. I met my future wife in my last year, and she moved to Santa Barbara with me (before we were married) after I was accepted into the Ph.D. program. 

I paid my dues. 

In graduate school I ended up taking out about $65,000 to $70,000 total. I could have borrowed much, much more, but I was careful. I worked weekends (again at a Chevron station in downtown Santa Barbara) my first year in the program. I could've borrowed more, but my (future) wife and I didn't want to get too deep into debt. We had no idea I'd get a full four-year ride starting in my second year, the U.C. Regents Fellowship, which paid for everything. That was merit based, by the way. I fucking earned that fellowship by kicking ass that first year. I have great memories and wouldn't take back a thing.

I know, though, my story is like so many others, folks who themselves and their families scrimped and saved just for the chance to attend college, much less a Ph.D program. *That's the American way.* If Republicans don't campaigh the hell out of this issue they're bloody stupid. LOTS of folks will be pissed that their working- and middle-class tax dollars are going toward debt bailouts for college graduates who make more than they do, and will make way more in the future. 

It's class warfare. It's a fundamental violation of society's social contract, and bitterly unfair. 

Still more at that top link.