Big Banks Predict Recession, Fed Pivot in 2023

Hmm.

Let's see if these predictions hit gold.

At the Wall Street Journal, "More than two-thirds of economists at 23 major financial institutions expect the U.S. to have a downturn this year."

'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."

Voters Overwhelmingly believe American Democracy is Under Threat, But No One Wants to Lift a Finger to Save It

You gotta love this country, especially all the gullible lambs being led to the slaughter. Oh, the country's on the brink? Who cares?!!

Actually, democracy's not on the ballot, is not in danger, and this poll shows it. The New York Times asks leading questions and the rubes parrot what they've heard in the leftist press --- and on Twitter! (Hi Meathead!)

Here, "Voters See Democracy in Peril, but Saving It Isn’t a Priority":

In less than a month we will determine whether we want to continue living in a Constitutional Democracy or let our 246 year experiment in Self Rule give way to Fascism. There is only one way to avoid the latter: Pull the lever for a Democrat.

— Rob Reiner (@robreiner) October 11, 2022

Voters overwhelmingly believe American democracy is under threat, but seem remarkably apathetic about that danger, with few calling it the nation’s most pressing problem, according to a New York Times/Siena College poll.

In fact, more than a third of independent voters and a smaller but noteworthy contingent of Democrats said they were open to supporting candidates who reject the legitimacy of the 2020 election, as they assigned greater urgency to their concerns about the economy than to fears about the fate of the country’s political system.

The doubts about elections that have infected American politics since the 2020 contest show every sign of persisting well into the future, the poll suggested: Twenty-eight percent of all voters, including 41 percent of Republicans, said they had little to no faith in the accuracy of this year’s midterm elections.

Political disagreements appear to be seeping into the fabric of everyday life. Fourteen percent of voters said political views revealed a lot about whether someone is a good person, while 34 percent said it revealed a little. Nearly one in five said political disagreements had hurt relationships with friends or family.

“I do agree that the biggest threat is survival of our democracy, but it’s the divisiveness that is creating this threat,” said Ben Johnson, 33, a filmmaker from New Orleans and a Democrat. “It feels like on both sides, people aren’t agreeing on facts anymore. We can’t meet in the middle if we can’t agree on simple facts. You’re not going to be able to move forward and continue as a country if you can’t agree on facts.”

The poll showed that voters filtered their faith in democracy through a deeply partisan lens. A majority of voters in both parties identified the opposing party as a “major threat to democracy.”

Most Republicans said the dangers included President Biden, the mainstream media, the federal government and voting by mail. Most Democrats named Donald J. Trump, while large shares of the party’s voters also said the Supreme Court and the Electoral College were threats to democracy.

Seventy-one percent of all voters said democracy was at risk — but just 7 percent identified that as the most important problem facing the country.

These ostensibly conflicting views — that voters could be so deeply suspicious of one another and of the bedrock institutions of American democracy, while also expressing little urgency to address those concerns — may in part reflect longstanding frustrations and cynicism toward government.

Still, among voters who saw democracy as under threat, the vast majority, 81 percent, thought the country could fix the problem by using existing laws and institutions, rather than by going “outside the law,” according to the poll. Those who said violence would be necessary were a small minority. “If we’re just talking about freedom, having freedom, and that we get to have a say in our choices, then I think we still have that,” said Audra Janes, 37, a Republican from Garnavillo, Iowa. She added, “I think that we need to stop trying to rewrite the Constitution and just reread it.”

Overall, voters’ broader frustration with a political system that many view as dangerously divided and corrupt has left them pessimistic that the country is capable of coming together to solve its problems, no matter which party wins in November.

The poll’s findings reinforce the idea that for many Americans, this year’s midterm elections will be largely defined by rising inflation and other economic woes — leaving threats to the country’s democratic institutions lurking in the back of voters’ minds...

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...

 

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). 

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

 Yeah, I'm sure.

At AoSHQ, "Funflation!"

The Left's Assault on the Middle Class (VIDEO)

Here's Batya Ungar-Sargon, author of, Bad News: How Woke Media Is Undermining Democracy, for the Rising on the Hill TV: 

Escape From C.A.? Los Angeles and San Francisco Lead the Way (VIDEO)

I love my state but Democrats have destroyed it. It's tragic.

I can't leave. I'm locked down career-wise at my college, teaching until I retire. In a decade or so I'll be able to, though. I'll have plenty of time to consider my options. Nevada or Wyoming? Idaho or Tennessee? Florida or Texas?

Who knows? 

Maybe California will be red state by then, with California's plurality Hispanic population following South Texas's lead? Never say never. Stranger things have happened. 

But as you can see, people who are free to flee, leave. It's a thing and getting bigger.

At the Los Angeles Times, "California exodus continues, with L.A., San Francisco leading the way: ‘Why are we here?’":

After living in the Bay Area for nearly seven years, Hari Raghavan and his wife decided to leave for the East Coast late last year.

They were both working remotely and wanted to leave California because of the high cost of living and urban crime. So they made a list of potential relocation cities before choosing Miami for its sunny weather and what they perceived was a better sense of safety.

Raghavan said that their Oakland house had been broken into four times and that prior to the pandemic, his wife called him every day during her seven-minute walk home from the BART station because she felt safer with someone on the phone. After moving to Miami, Raghavan said they accidentally left their garage door open one day and were floored when they returned home and found nothing had been stolen.

“We moved to the Bay Area because we had to be there if you want to work in tech and start-ups, and now that that’s no longer a tether, we took a long hard look and said, ‘Wait, why are we here again?’ ” Raghavan said.

He said there wasn’t much draw in California’s quality of life, local or social policies, or cost of living. “That forced us to question where we actually wanted to live,” he said.

An acceleration of people leaving coastal California began during the first year of the pandemic. But new data show it continued even after lockdowns and other COVID restrictions eased.

California ranks second in the country for outbound moves — a phenomenon that has snowballed during the pandemic, according to a report from the Federal Reserve Bank of Chicago, which tracked data from moving company United Van Lines. Between 2018 and 2019, California had an outbound move rate of 56%. That rate rose to nearly 60% in 2020-21.

Citing changes in work-life balance, opportunities for remote work and more people deciding to quit their jobs, the report found that droves of Californians are leaving for states like Texas, Virginia, Washington and Florida. California lost more than 352,000 residents between April 2020 and January 2022, according to California Department of Finance statistics.

San Francisco and Los Angeles rank first and second in the country, respectively, for outbound moves as the cost of living and housing prices continue to balloon and homeowners flee to less expensive cities, according to a report from Redfin released this month.

Angelenos, in particular, are flocking to places like Phoenix, Las Vegas, San Diego, San Antonio and Dallas. The number of Los Angeles residents leaving the city jumped from around 33,000 in the second quarter of 2021 to nearly 41,000 in the same span of 2022, according to the report.

California has grappled with extremely high housing prices compared with other states, according to USC economics professor Matthew Kahn. Combined with the pandemic and the rise in remote work, privileged households relocated when they had the opportunity.

“People want to live here, but an unintended consequence of the state’s environmentalism is we’re not building enough housing in desirable downtown areas,” Kahn said. “That prices out middle-class people to the suburbs [and creates] long commutes. We don’t have road pricing to help the traffic congestion, and these headaches add up. So when you create the possibility of work from home, many of these people ... they say ‘enough’ and they move to a cheaper metropolitan area.”

Kahn also pointed out that urban crime, a growing unhoused population, public school quality and overall quality of life are driving out residents.

“In New York City, but also in San Francisco, there are all these fights about which kids get into which elite public schools,” he said. “The rich are always able to hide in their bubble, but if the middle class looks at this quality of life declining, that’s a push factor to leave.”

Redfin chief economist Daryl Fairweather cited a June report that tracked the change in spending power of a homebuyer on a $2,500 monthly budget. While 11.2% of homes in Los Angeles were affordable on that budget, using a 3% interest rate, that amount swelled to about 72% in Houston and about 50% in Phoenix.

“It’s really an affordability problem,” Fairweather said. “California for the longest time has prioritized single-family zoning, which makes it so people stay in their homes longer because their property taxes don’t reflect the true value. California is the epicenter of where the housing shortage is so people have no choice but to move elsewhere.”

While California experienced a major population boom in the late 20th century — reaching 37 million people by 2000 — it’s been losing residents since, with new growth lagging behind the rest of the country, according to the Public Policy Institute of California. The state’s population increased by 5.8% from 2010 to 2020, below the national growth rate of 6.8%, and resulting in the loss of a congressional seat in 2021 for the first time in the state’s history.

Although California has relied on immigration to offset its population decline for the past two decades, that flow has also shrunk, according to UCLA economics professor Lee Ohanian.

Delays in processing migration requests to the U.S. were compounded during the pandemic, resulting in the lowest levels of immigration in decades, according to U.S. Census Bureau data.

Estimates showed a net increase of 244,000 new immigrants between 2020 and 2021 — roughly half the 477,000 new immigrant residents recorded between 2019 and 2020 and a drastic reduction from more than 1 million reported from 2015 to 2016.

The state is also seeing a dwindling middle class...

The "middle class"? Ha! 

How about the Medieval class? The so-called middle class in California is now our postmodern neo-feudal peerage for the metaversal-future.

See Joel Kotkin, at City Journal (interview), "California’s Neo-Feudal Future."

'I Made A Huge Mistake Voting For Biden'

Ms. Zoe Nicholson from St. Louis:

Zoe, a Missouri resident: “I made a huge mistake voting for Biden.”

“I regret voting for him. I mean, it really was a terrible choice. " pic.twitter.com/EMki781Gu7

— RNC Research (@RNCResearch) July 11, 2022

Germany Reboots Coal-Fired Plants as Russia Chokes European Energy Supplies

This is a tough time for the climate change cult.

Reality's punching through their worldview of unicorns, rainbows, and electric cars.

At the Wall Street Journal, "Germany Steps Up Measures to Conserve Gas as Russia Slows Supply to Europe":

Berlin to restart coal-fired plants and auction gas to reduce consumption.

Gazprom has blamed the shortfall on missing turbine parts that were stuck in Canada due to sanctions. European officials and analysts dismissed the explanation.

Germany imports about 35% of its natural gas from Russia, down from 55% before the war, and uses most of it for heating and manufacturing, according to German government estimates. Last year, power generation using natural gas accounted for about 15% of total public electricity in Germany, Mr. Habeck said, adding that the share of gas in power production has likely fallen this year.

To accelerate the decline of gas in the power mix, Mr. Habeck outlined a number of steps the government was taking to reduce reliance on gas and build up stores for the coming winter.

In a U-turn for a leader of the environmentalist Green Party, which has campaigned to reduce fossil-fuel use, Mr. Habeck said the government would empower utility companies to extend the use of coal-fired power plants.

This would ensure that Germany has an alternative source of energy but would further delay the country’s efforts to slash carbon emissions.

“This is bitter,” Mr. Habeck said of the need to rely on coal. “But in this situation, it is necessary to reduce gas consumption. Gas stores must be full by winter. That has the highest priority.”

The legislation affecting the use of coal is expected to be approved on July 8 in the Bundesrat, the upper house of parliament, Mr. Habeck said. The measure expires on March 31, 2024, by which time the government hopes to have created a sustainable alternative to Russian gas.

Mr. Habeck also said the government would introduce an auction system that would motivate industry to reduce consumption.

The government released no details about how the auction would work, but Mr. Habeck said it would begin this summer.

Mr. Habeck said the new measures are aimed at diverting the dwindling gas deliveries from Russia into storage tanks to be used during the winter.

 

Why Aren't Democrats Dancing for Joy About Sky-High Gas Prices?

From Ed Driscoll, at Instapundit, "THE COUNTRY’S IN THE VERY BEST OF HANDS: Joe Biden Gets Smashed by Resurrected Clip, Karine-Jean Pierre Flails in Response."

It's a link-fest over there, with this hypersonic missile of truth on gas prices: