Happy New Year! The Biden Administration is made of lies (which you already knew), a few links about guns, mysterious deaths in Tarrant County jails, Russian finds new, embarrassing ways to lose equipment, Hasbro destroys D&D’s legacy, and a look at biblical werewolves. It’s the Friday LinkSwarm!
One of Biden’s main legacies: Corrupting official government economic statistics:
Another 653,000 fake jobs revised away by govt statisticians. They were faking the data during 2023 and 2024 to try to boost Joe Biden and Kamala Harris.
In the revisions, they have also admitted to 818,000 fake jobs being removed from the 2023 data.
A brand new investigation from the Wall Street Journal has revealed that scientists knew early on that the COVID-19 virus was an engineered virus that escaped a lab, but the information was suppressed by intelligence agencies and removed from all presidential briefings on the matter.
Three scientists from the National Center for Medical Intelligence, John Hardham, Robert Cutlip and Jean-Paul Chretien, had reported their findings that the virus was manipulated in a lab. They shared their findings with the FBI, but were soon told to stop.
In August of 2021, Biden was briefed on the origins of COVID-19 after a 90-day investigation from intelligence agencies. National Intelligence Director Avril Haines briefed the President and left out all research pointing to a lab leak from her briefing.
Sarah Hoyt has a pretty good plan moving forward: We win, they lose.
It’s going to take a long time for us to stop flinching and deciding we’re going to be betrayed. 2020 left scars in the collective psyche, and scars take a long time to fade if they ever do.
The last four years we were hunching our shoulders and just enduring the blows, and that will take a long long time to fade.
And sure, there are things that won’t go our way. But you shouldn’t worry too much about that.
Look, the edifice that supports the boot on our necks is not only rickety. It always was rickety.
Keeping the big lie of the all powerful centralized government in place was a full scale production, and it required a fully coordinated media, fully coordinated panels of “experts”, and a trusting public that believed all of it. Or at least a majority of the public that believed all of it.
It has been eroding for a while, since social media and blogs got really big in the wake of 9/11. Despite their best efforts at censorship, a massed multitude of — what did they call us? — hobbits is harder to control than a few journalists who want to be invited to the right parties.
Trump’s election in 2016 was the first time the media lost to the hobbits. Really lost, publicly. They didn’t like it. The hell the establishment has put us through since is their payback.
It came with unexpected consequences though. The main ones being: their masks were yanked off; and we don’t believe them anymore.
This is the sort of thing that not all the king’s horses and not all the king’s men can put together ever again.
Sure, we’ll “lose” some. Sure, they’re making cunning plans to thwart the will of the people.
But be not afraid. If we win even a few places, it’s enough for the whole edifice of oppression and lies to come tumbling down.
It has been tumbling down, already, even while they were nominally in power, which is why we won 2024.
Be not afraid. This is very important. The rest will fall into place, provided you keep your heads and remember you’re Americans.
Until a few years ago I was working as a mid-career research scientist, no I won’t tell you what field. Within my collaboration I was known for being extremely productive. I’ve seen jaws drop when I show colleagues my publication list.
Then it came time to start applying for junior professor positions.
Got a few interviews, but doors kept getting slammed in my face. It’s a very opaque process ofc, they never tell you why. In one case however I had the dean – a portly Hispanic woman – tell me two minutes into the interview that “women in STEM are very important to me”, and ultimately heard informally from one of the profs at that dept that I hadn’t been hired because of interference from the dean, despite all of the profs on the committee wanting me, and that instead they’d hired … no one.
One of the many controversial chunks of the short-term spending bill that sparked debate recently included funding for the State Department’s Global Engagement Center.
But what’s the problem? After all, who doesn’t like “Global Engagement”?!
Well, this agency — formed by Barack Obama — has been moonlighting as a censorship czar, handing out taxpayer dollars like candy to groups that spend their time suppressing conservative voices online.
(In other words, your average Obama administration government office.)
But after widespread backlash, the new version has no room for the Global Engagement Center.
Snip.
Reports from the Washington Examiner indicated that the GEC bankrolled groups like the Global Disinformation Index and NewsGuard, organizations that basically police speech with the finesse of a drunk mall cop. The Federalist and the Daily Wire even sued the GEC over its role in suppressing right-leaning voices.
Thanks to the new continuing resolution, the GEC finally met its own doom, with yet another scrap of Barack Obama’s legacy shuffling off into the sunset like Joe Biden’s last remaining marble.
Sounds like some companies are asking for a lawsuit:
Just got a dm from someone who works in recruiting at one of big tech companies. He said it's internal policy within the team he works for to reserve roles for what they call “outside talent”.
They are not allowed to recruit Americans for these roles but must go through the…
Suspicious. “North Texas Activist Is Latest to Die in Tarrant County Jail. Mason Yancy was the ninth person to die in Tarrant County Jail custody this year….Yancy was well known to grassroots activists in North Texas and across the state as an advocate for limited government and First and Second Amendment rights. He co-founded Open Carry Texas with activist-turned-attorney CJ Grisham.”
Anti-Chinese riots in Africa, following a disputed election in which Daniel Chapo of the ruling FRELIMO (socialist, formerly communist) party was declared the winner. Seems like the citizens of Mozambique aren’t big fans of Belt and Road…
Waterloo records in Austin is relocating under new ownership. “Caren Kelleher, founder and president of Gold Rush Vinyl, confirmed Thursday she and business partner Trey Watson (CEO of Armadillo Records) will be taking over Waterloo Records. The vinyl shop has operated in Austin for more than 40 years, including 35 years at its current location along West Sixth Street and North Lamar Boulevard.” I used to spend a fair amount of time searching their used CD bins, but I all but stopped going downtown during the “homeless camping” fiasco. (Hat tip: .)
Israel hits Iran, everyone wants to delete illegal aliens, Kamala loses a one-person debate, WaPo refuses to pick Kamala over Hitler, the WNBA continues to bleed cash, and Tim Walz gets his ABBA on. It’s the Friday LinkSwarm!
Reminder: Early voting in Texas is going on now and extends through November 1st, and Joe Rogan’s interview with Donald Trump is tonight.
A new Fox News poll shows that two-thirds of American voters favor deporting illegal aliens—a dramatic increase over the past decade.
Republican presidential candidate Donald Trump has made mass deportation a major policy promise throughout his campaign, as the open border policies of the Biden-Harris administration have allowed millions of illegal aliens to enter the U.S.
The October 2024 poll of registered voters shows that support for deportation has increased dramatically since 2015. Among nonwhite voters, 57 percent now support mass deportations, while only 33 percent said they did in 2015.
Additionally, 91 percent of Republicans now say they support deportations—a 21-point increase since 2015. Rural voters’ support has risen by 20 points, urban voters by 19 points, and men’s support increased by 16.
Democrat support for deportations has increased to 42 percent from 34 percent in 2015.
Voters were also asked if they were in favor of allowing illegal aliens who have jobs to apply for legal status. While 68 percent said they were in favor in 2015, it dropped to 58 percent in favor this year.
Another Fox News poll shows that immigration is voters’ second top issue as they head into the November election. The economy is the number one issue for 40 percent of voters, while 17 percent said immigration and 15 percent said abortion.
is out of gas. The weather is choppy, the navigation system completely unreliable, and the best guess is that you’re still short of the runway. (Oh, and the captain had a stroke while in the cockpit a few hours ago, leaving only a flight attendant as the pilot. She refuses to read the instruction manual or listen to the passengers.) Yes, it’s easy enough to spin up lovingly bespoke metaphors for how the Harris campaign is handling the late stages of the 2024 race — a race they very much could still win, I must always emphasize — but I’ll conclude this one by saying that if last night’s Kamala Harris CNN town hall (with Anderson Cooper hosting in the Philadelphia suburbs) is any indication, the plane may already be disintegrating in midair, before it even hits the ground.
You may have noticed that I’ve had a decidedly muted reaction to Harris’s other recent “serious” media interviews, whether Bret Baier at Fox News or Bill Whitaker on 60 Minutes, in the sense that while Harris was predictably awful in both sit-downs (almost relentlessly so), she was boring and unrevelatory in her awfulness. In other words, we learned nothing new about the depths to which she is capable of sinking performatively that we didn’t already know. They were water-treading exercises for the most part.
Last night’s CNN town hall, on the other hand, was memorably bad. This is the moment her campaign dreaded, the moment when the fundamental emptiness and inadequacy of their candidate was revealed for all the world to see without helpful edits or someone to bail her out. There Harris stood exposed — with an unpersuaded audience and a moderator in Cooper who handled his task without showing any particular solicitude for her electoral fortunes — and she withered in the spotlight. (As Dylan might have said, “Even the vice president of the United States sometimes must have to stand naked.”) There are moments from this event — many moments, oh so terribly many of them — that will haunt Harris in retirement forever should she lose, the sorts of ghastly stammering failures destined to go into YouTube clip reels ten years later explaining “How We Got Here….”
As for myself, I found Harris’s answer to Anderson Cooper’s pointed question about the border fence to be perhaps the lowest moment of her entire public career to date, and I mean that in the specific sense that nobody who watches it — not even her fiercest partisans — will be able to come away from it with anything save a reflex-level revulsion.
I did not have Anderson Cooper cooking Kamala on my bingo card but here we are.
She’s exposed as a total hypocrite here. First the wall was racist, stupid and xenophobic but now that she needs votes she’s pandering. pic.twitter.com/ctk6nmQcvZ
“What was most remarkable about the disaster is how even CNN’s own analysts panned Harris’s performance as well, some with a palpable sense of disgust.”
Some excerpts of that:
NEW: CNN’s Scott Jennings says Kamala Harris is a “double-threat” because she can’t think on her feet and can’t answer the expected questions.
CNN has railed on Harris after her town hall event.
Next, after weeks of courting Gov. Josh Shapiro as her running mate, Harris rejected him for Gov. Tim Walz of Minnesota – the state that gave us Gov. Jesse “the body” Ventura and Saturday Night Live’s Al Franken as a U.S. Senator.
Another misstep for Harris. While Shapiro isn’t Biden, he is well known in greater Philadelphia and seems comfortable campaigning in Scranton and towns like it across the state.
It still isn’t clear if Harris rejected Shapiro because he is Jewish and supports Israel’s right to defend itself or because he is a tireless campaigner, well-received on the stump, who might show her up. Did she reject Shapiro because picking him would offend “the Squad” in Congress and endanger the electoral votes of Michigan, home to a large Muslim population? Or did she spurn the Pennsylvania governor because she didn’t want her supporters murmuring: “We should’ve run him?
Harris compounded her mistake by picking Walz, who represents the Democratic Party’s modern left wing. Walz won’t help Harris win votes in Pennsylvania; in fact, he makes it harder. She picked someone who is un-relatable everywhere, from Philadelphia’s neighborhoods to small town and rural Pennsylvania. And, he’s just plain “weird.”
It gets worse. Her message, agenda, and policies are not resonating here.
She has tried to stress that the economy is actually good – “Bidenomics is working,” she maintained. They tried charts, graphs, and “experts.” No one in Philadelphia’s neighborhoods is buying it, especially blacks and Hispanics, who are being crushed by inflation and violent crime.
So Harris pivoted to a new message: she would “fix” the economy and “fight” inflation. Her now comically repeated line about being “raised in a middle-class family” draws blank stares, laughs, or anger, even among some in her usual base.
It’s even worse in rural Pennsylvania, where Walz and “second man” Doug Emhoff tried a “real men for Kamala tour,” complete with ads and Zoom calls about why men should support her.
Then they sent “Elmer Fudd” – aka Walz – out hunting. In newly purchased hunting clothes, using the wrong rifle (plus demonstrating that he didn’t know how to load it), Walz resembled something like King Charles attending the Indianapolis 500.
Harris was against fracking – that is, before she was for it, as she now claims to be. No one in rural Pennsylvania is buying it. Her “values haven’t changed,” as she herself says. Rural Pennsylvanians know that her preferred policy would hurt the economy of northern, central and western Pennsylvania, to say nothing of the national economy and national security.
Democrats want to win Pennsylvania, of course – but they have selected the wrong candidate, through the wrong method. Harris then dug the hole deeper by picking the wrong running mate. And to top it off, they’re running on a misguided, if not delusional, platform.
“Black, Latino, and Asian Trump supporters shout down white, liberal Harris supporters in Lancaster.”
The left-wing, liberal, and Democratic narrative about former President Donald Trump being a racist is falling apart.
For years, labeling Trump as a racist was an integral part of Democrats’ political strategy. It was never really true, mind you. It was just baseless hyperbolic hysteria that was at the foundation of the Democratic political propaganda machine. They have used it against every Republican presidential candidate for the last 40 years.
They used it to brainwash, scare, and manipulate racial minorities and white liberals in the previous two presidential elections, in which Trump was the GOP nominee. They wanted to create a narrative that the only people who supported Trump were a bunch of lowly, uneducated, racist white people. It worked in 2016, and it worked in 2020. It’s not working in 2024.
The sanctimony of white, liberal Democrats is predicated on their unhinged arrogance of moral superiority involving race. The white, liberal Democrats think racial minorities cannot succeed in the United States without white, liberal Democrats saving them. The white, liberal Democrats think they are more intelligent, enlightened, and compassionate than Republicans. So, imagine their surprise when, outside the venue that hosted a town hall for Trump in Lancaster, Pennsylvania, on Saturday, it was black, Latino, and Asian Trump supporters shouting down Vice President Kamala Harris’s white, liberal supporters.
I witnessed, firsthand, white, liberal Harris supporters screaming that Trump is a racist and then demeaning the many black, Latino, and Asian Trump supporters holding Trump signs and wearing MAGA hats and shirts. These smug, arrogant white people were trying to tell racial minorities what was best for them. It was a sight to behold, but not one that has not become commonplace in American society. It was a reflection of just how out of touch with reality white, liberal Harris voters are.
Dominicans for Trump sign holders outside Trump town hall in Lancaster, Pennsylvania. (Photo by Christopher Tremoglie)
The crowd at the town hall was diverse, with a larger-than-expected minority presence, given the tall tales of Harris supporters’ fails regarding diversity and race among Trump supporters. It was immediately noticeable upon arriving at the town hall. Those in attendance were greeted by boisterous Asian Americans waving American flags in front of Trump posters, wearing red MAGA hats, and chanting the name “Trump!”
A few hundred feet away, a group of Dominican Trump voters were cheering for the former president and shouting down anyone who dared insult the GOP nominee. They stood outside the venue holding signs that read “Dominicans for Trump” and “Boricuas for Trump.”
A Harris supporter passed the group and chastised them, asking how they could be a minority and support a racist and a bigot. A person holding a “Boricuas for Trump” sign shouted back at them, asking the white Harris supporter who they thought they were telling a Dominican who to support. The Harris supporter kept walking. Other incidents played out similarly nearby.
Later, this group gathered at a main intersection near the Lancaster Convention Center and engaged in a shouting match with a group of Harris supporters, who had gathered to protest Trump. There did not appear to be any mention of race, just two groups shouting back and forth at each other. However, again, I noticed the Harris supporters were white, and the most vocal Trump supporters were black, Latino, and Asian.
Also: “Initial GOP Early Vote Turnout in Texas Substantially Higher Than 2020 Levels.”
But don’t get cocky! “Schumer-Backed Democratic PAC Makes $5 Million Texas Ad Buy Backing Allred….Schumer’s group, Senate Majority PAC (SMP) had mostly abstained from the Texas race, playing ball in other, seemingly more competitive races like in Ohio and Montana — much to Congressman Colin Allred’s (D-TX-32) chagrin. But clearly the calculus has changed for the group, which has now put substantial skin in the game in Texas.”
The Democratic Party’s election dirty tricks begin. “Montana Dem Operative Caught Tampering With Ballot Box…The operative, Laszlo Gendler, has been paid by the Democratic Senatorial Campaign Committee (DSCC), according to OpenSecrets.org, as Montana Talks reported. The DSCC is attempting to help incumbent Democrat Senator Jon Tester against GOP senatorial candidate Tim Sheehy.”
A decade and a quarter of a billion dollars later, students and faculty are more frustrated than ever….
A decade ago, Michigan’s leaders set in motion an ambitious new D.E.I. plan, aiming “to enact far-reaching foundational change at every level, in every unit.” Striving to touch “every individual on campus,” as the school puts it, Michigan has poured roughly a quarter of a billion dollars into D.E.I. since 2016, according to an internal presentation I obtained. A 2021 report from the conservative Heritage Foundation examining the growth of D.E.I. programs across higher education — the only such study that currently exists — found Michigan to have by far the largest D.E.I. bureaucracy of any large public university. Tens of thousands of undergraduates have completed bias training. Thousands of instructors have been trained in inclusive teaching.
Michigan inaugurated what it now calls D.E.I. 1.0, it intentionally placed itself in the vanguard of a revolution then reshaping American higher education. Around the country, college administrators were rapidly expanding D.E.I., convinced that such programs would help attract and retain a more diverse array of students and faculty.
Today that revolution is under withering attack. Energized by backlash to the Black Lives Matter movement and the right-wing campaign against “critical race theory” in public institutions, at least a dozen states have banned or limited D.E.I. programs at public universities. After the Oct. 7 attacks, as campuses across the country erupted with protests against Israel, critics accused D.E.I. programs of fostering antisemitism. In the fever of the 2024 campaign, Republican influencers and politicians have recast D.E.I. as an all-purpose boogeyman — the root cause of defective airplanes, the collapse of a Baltimore bridge and the near-assassination of Donald J. Trump.
But even some of Michigan’s peer institutions have soured on aspects of D.E.I. Last spring, both the Massachusetts Institute of Technology and Harvard’s Faculty of Arts and Sciences said they would no longer require job candidates to submit diversity; such “compelled statements,” M.I.T.’s president said, “impinge on freedom of expression.”
Michigan hasn’t joined the retreat. Instead, it has redoubled its efforts, testing the future of an embattled ideal. A year ago, the university inaugurated what it calls D.E.I. 2.0. At Michigan’s flagship Ann Arbor campus, the number of employees who work in D.E.I.-related offices or have “diversity,” “equity” or “inclusion” in their job titles increased by 70 percent, reaching 241, according to figures compiled by Mark J. Perry, an emeritus professor of finance at the university’s Flint campus and a D.E.I. critic. (The school’s own figures, which count the D.E.I. work force differently, show less growth over time and a much smaller staff as of last year.) When school began in August, brightly colored flags around campus promoted the goals of D.E.I. 2.0.
According to a confidential report I obtained, a committee appointed by Michigan’s provost — and stocked with professors with D.E.I.-related appointments — urged the school this summer to continue using diversity statements in hiring and promotion, arguing that eliminating them “would be seen as a capitulation to the winds of political expediency.”
In many respects, Michigan’s entire D.E.I. initiative can be understood as a sustained act of defiance against such pressures. Nearly two decades ago, voters in Michigan banned racial preferences in university admissions and hiring. When the Supreme Court outlawed affirmative action across the land last year — stripping selective colleges of their most powerful tool for building racially diverse classes — Michigan’s president, Santa J. Ono, went on PBS’s “NewsHour” to offer his university as the model for achieving diversity in a post-affirmative action world.
But over months of reporting this year, I found a different kind of backlash building, one that emanated not from Washington or right-wing think tanks but from inside the university’s own dorms and faculty lounges. On Michigan’s largely left-leaning campus, few of the people I met questioned the broad ideals of diversity or social justice. Yet the most common attitude I encountered about D.E.I. during my visits to Ann Arbor was a kind of wary disdain.
D.E.I. at Michigan is rooted in a struggle for racial integration that began more than a half-century ago, but many Black students today regard the school’s expansive program as a well-meaning failure. The university now has a greater proportion of Hispanic, Asian and first-generation students and a more racially diverse staff. But in a state where 14 percent of residents are Black, the school’s Black undergraduate enrollment has long hovered stubbornly at around 4 percent, before ticking up just past 5 percent this fall. (The figures are slightly higher if, as school officials strongly urged, you include students who identify as more than one race.) …
Michigan’s own data suggests that in striving to become more diverse and equitable, the school has also become less inclusive: In a survey released in late 2022, students and faculty members reported a less positive campus climate than at the program’s start and less of a sense of belonging. Students were less likely to interact with people of a different race or religion or with different politics — the exact kind of engagement D.E.I. programs, in theory, are meant to foster.
Social Justice is racist garbage that destroys everything it touches.
'We must not publish a study that says we're harming children because people who say we're harming children will use the study as evidence that we're harming children, which might make it difficult for us to continue harming children.' pic.twitter.com/hS4CcswkXg
Hezbollah launches a drone attack against Israeli Prime Minister Benjamin Netanyahu’s house, though they cause no injuries. Honestly, this is a huge step up from their usual targeting of women and children, as a country’s political leaders are a legitimate war target.
“Half of Millennials and Gen Z homeowners are, quote, trapped in their starter homes, which are now losing tens of thousands in value thanks to the same Federal Reserve that put them in a housing hell to begin with.”
Ammo.com sent over a report on defensive gun use in the U.S. “Although many dispute the plausibility of more than one million DGUs yearly, it is entirely plausible. With millions of gun owners in the U.S. and millions of unreported crimes, more civilians likely stop threats than are harmed by them. Furthermore, states with permitless carry and stand-your-ground laws experience reduced violent crime rates. Therefore, armed civilians are, at least, not a danger to society.”
Another one. “North Texas Teacher Arrested for Sexual Relationship With Former Student. Carroll ISD middle school teacher Angela Barnes was charged with sexual assault of a child and improper relationship between an educator and student.”
Lin Chen pleaded guilty in federal court today to illegally exporting U.S. technology to a prohibited end user in China, in violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR). The plea was accepted by the Hon. William Alsup, Senior U.S. District Judge.
In pleading guilty, Chen, 65, a citizen of the People’s Republic of China (PRC), admitted to acting on behalf of Jiangsu Hantang International Trade Group Corp., Ltd. (JHI), a company headquartered in Nanjing, PRC, to procure a wafer cutting machine on behalf of Chengdu GaStone Technology Co., Ltd. (GaStone), an entity located in Chengdu, PRC. Chen admitted to knowing that GaStone was designated on the U.S. Department of Commerce’s Entity List on Aug. 1, 2014. Federal regulations restrict the export of certain items to companies, research institutions, and other entities identified on the Department of Commerce’s Entity List. Under applicable Department of Commerce regulations, wafer cutting machines, which are used to cut thin semiconductors used in electronics (also known as silicon wafers), require a license for export to end-users such as GaStone.
According to the plea agreement, by no later than Dec. 4, 2015, Chen knew that GaStone was prohibited from receiving restricted exports without a license, including a DTX-150 Scribe and Break Machine, a machine for processing silicon wafer microchips. On approximately Dec. 10, 2015, Chen worked with a co-defendant to arrange the sale of a DTX-150 to GaStone by shipping it to the PRC in the name of JHI without an export license from Commerce. Chen used JHI’s status as an intermediary to conceal GaStone as the true end-user of the technology.
That’s a slice-and-dice machine, not some cutting-edge process tech that’s embargoed to China. They might have been able to get that legally by just filling out the proper forms.
The last full-sized Kmart closes. I would say “Thanks, Joe Biden,” but this particular death, thanks to Walmart and Amazon, has been a long time coming.
“WNBA will lose $40 million this season. So naturally the players are thinking of opting out of their labor agreement to ask for more money… (Hat tip: Dwight.)
Postcards From Barsoom has an extensive, reasonably compelling case that men gravitate toward jobs that allow them to compete with other men, mainly to impress women, and as become the majority in each of these fields, those particular arenas no longer convey status for achievement, because men do not win status by defeating women. Thus men who enter female-dominated fields for greater access to women are barking up the wrong tree, because even their co-workers will view them as low status. This theory has a certain amount of explanatory power, and posits that the feminization of academia begat social justice, not vice versa, but seems to me to be too totalizing an explanation for our current woes. (Hat tip: Sarah Hoyt at Instapundit.)
Supply chain problems have gotten so bad that Derek Thompson at The Atlanticdeigns to notice them:
The coronavirus pandemic has snarled global supply chains in several ways. Pandemic checks sent hundreds of billions of dollars to cabin-fevered Americans during a fallow period in the service sector. A lot of that cash has flowed to hard goods, especially home goods such as furniture and home-improvement materials. Many of these materials have to be imported from or travel through East Asia. But that region is dealing with the Delta variant, which has been considerably more deadly than previous iterations of the virus. Delta has caused several shutdowns at semiconductor factories across Asia just as demand for cars and electronics has started to pick up. As a result, these stops along the supply chain are slowing down at the very moment when Americans are demanding that they work in overdrive.
The most dramatic expression of this snarl is the purgatory of loaded cargo containers stacked on ships bobbing off the coast of Los Angeles and Long Beach. Just as a normal traffic jam consists of too many drivers trying to use too few lanes, the traffic jam at California ports has been exacerbated by extravagant consumer demand slamming into a shortage of trucks, truckers, and port workers. Because ships can’t be unloaded, not enough empty containers are in transit to carry all of the stuff that consumers are trying to buy. So the world is getting a lesson in Econ 101: High demand plus limited supply equals prices spiraling to the moon. Before the pandemic, reserving a container that holds roughly 35,000 books cost $2,500. Now it costs $25,000.
The container situation is even weirder than it looks. With demand surging in the United States, shipping a parcel from Shanghai to Los Angeles is currently six times more expensive than shipping one from L.A. to Shanghai. J.P. Morgan’s Michael Cembalest wrote that this has created strong incentives for container owners to ship containers to China—even if they are mostly empty—to expedite the packing and shipping of freights in Shanghai to travel east. But when containers leave Los Angeles and Long Beach empty, American-made goods that were supposed to be sent across the Pacific Ocean end up sitting around in railcars parked at West Coast ports. Since the packed railcars can’t unload their goods, they can’t go back and collect more stuff from filled warehouses in the American interior.
And what about the truckers who are needed to drive materials between warehouses, ports, stores, and houses? They’re dealing with a multidimensional shortage too. Supply-chain woes have backed up orders for parts, such as resin for roof caps and vinyl for seats. But there’s also a crucial lack of people to actually drive the rigs. The Minnesota Trucking Association estimates that the country has a shortage of about 60,000 drivers, due to longtime recruitment issues, early retirements, and COVID-canceled driving-school classes.
In short, supply chains depend on containers, ports, railroads, warehouses, and trucks. Every stage of this international assembly line is breaking down in its own unique way. When the global supply chain works, it’s like a beautifully invisible system of dominoes clicking forward. Today’s omnishambles is a reminder that dominoes can fall backwards too.
However, there are two important words missing from Thompson’s analysis: “vaccine” and “mandate.”
Like other manufacturers, petrochemical companies have been shaken by the pandemic and by how consumers and businesses responded to it. Yet petrochemicals, which are made from oil, have also run into problems all their own, one after another: A freak winter freeze in Texas. A lightning strike in Louisiana. Hurricanes along the Gulf Coast.
All have conspired to disrupt production and raise prices.
“There isn’t one thing wrong,” said Jeremy Pafford, managing editor for the Americas at Independent Commodity Intelligence Services (ICIS), which analyzes energy and chemical markets. “It’s kind of whack-a-mole — something goes wrong, it gets sorted out, then something else happens. And it’s been that way since the pandemic began.’’
The price of polyvinyl chloride or PVC, used for pipes, medical devices, credit cards, vinyl records and more, has rocketed 70%. The price of epoxy resins, used for coatings, adhesives and paints, has soared 170%. Ethylene — arguably the world’s most important chemical, used in everything from food packaging to antifreeze to polyester — has surged 43%, according to ICIS figures.
The root of the problem has become a familiar one in the 18 months since the pandemic ignited a brief but brutal recession: As the economy sank into near-paralysis, petrochemical producers, like manufacturers of all types, slashed production. So they were caught flat-footed when the unexpected happened: The economy swiftly bounced back, and consumers, flush with cash from government relief aid and stockpiles of savings, resumed spending with astonishing speed and vigor.
Suddenly, companies were scrambling to acquire raw materials and parts to meet surging orders. Panic buying worsened the shortages as companies rushed to stock up while they could.
Expecting these problems to be transitory? Dubai’s largest port operator says to expect supply chain problems to extend in 2023.
A global energy crunch caused by weather and a resurgence in demand is getting worse, stirring alarm ahead of the winter, when more energy is needed to light and heat homes. Governments around the world are trying to limit the impact on consumers, but acknowledge they may not be able to prevent bills spiking.
Further complicating the picture is mounting pressure on governments to accelerate the transition to cleaner energy as world leaders prepare for a critical climate summit in November.
Translation: Green energy mandates = blackouts.
In China, rolling blackouts for residents have already begun, while in India power stations are scrambling for coal. Consumer advocates in Europe are calling for a ban on disconnections if customers can’t promptly settle what they owe.
“This price shock is an unexpected crisis at a critical juncture,” EU energy chief Kadri Simson said Wednesday, confirming the bloc will outline its longer-term policy response next week. “The immediate priority should be to mitigate social impacts and protect vulnerable households.”
In Europe, natural gas is now trading at the equivalent of $230 per barrel, in oil terms — up more than 130% since the beginning of September and more than eight times higher than the same point last year, according to data from Independent Commodity Intelligence Services.
In East Asia, the cost of natural gas is up 85% since the start of September, hitting roughly $204 per barrel in oil terms. Prices remain much lower in the United States, a net exporter of natural gas, but still have shot up to their highest levels in 13 years.
Wait, you mean relying on Russian benevolence wasn’t an optimal strategy? Do tell.
There’s also panic buying to secure winter supplies, especially in China, where “the central government there has given state-owned energy companies a directive to secure winter energy supplies at any and all costs.”
Steel, roofing and insulation materials are some of the most difficult products to get right now, said Ken Simonson, chief economist at the Associated General Contractors of America. Bar joists, which are used to frame roofs, can have lead times of anywhere from 10 months to 14 months.
Costs have also soared, with the index for steel mill products rising 123% YoY in August, according to the Bureau of Labor Statistics’ Producer Price Index. Copper and brass mill shapes jumped 45.3% YoY, while plastic construction products saw increases of just under 30% YoY.
A few weeks ago I spoke with several people intimately involved with large companies in my industry and they all agree that we have probably another year of supply chain disruptions and problems. That wasn’t exactly music to my ears as the last year and a half has been an intense marathon trying to keep my buildings full of product that my dealers need. The reasons are everything that you have heard before here and on other media outlets – labor shortages, raw material issues and now, chip problems.
The chip problem could be a really big issue as those chips go into printed circuit boards that control furnaces – and we need furnaces now for Fall.
My one large exception mentioned above is that my inventory levels are absolutely enormous and we are setting new records daily. This is killing my turns and as a result cash, but this is the new model. We simply can’t predict when things will come in so we have to pile in sometimes a full years worth of a widget. We are absolutely bursting at the seams and it is extremely stressful trying to keep everyone happy. We don’t dare cancel any orders as we would go to the back of the line, so it is what it is.
Freight is a major issue right now. We get damage all the time and the LTL lines are all extremely slow and sloppy. Hardly a day goes by where we don’t have a freight problem.
Parts don’t really seem to be an issue. Sure, there are certain things that we have problems with, but in general the parts world is OK so there is that silver lining.
This year, a devastating drought in North American oat fields has resulted in the lowest harvest for the cereal grain in years, pushing prices to record highs, a warning sign that breakfast inflation is imminent.
Scorching heat waves in Candian oat fields slashed production to an 11-year low. Canada, the world’s biggest exporter, ships most of its oats to the US, its largest consumer.
The result so far has been a new record high in oats futures trading on the CME. The sudden spike in prices has yet to ripple through supply chains to affect consumers, though that will be coming.
According to Bloomberg, “the situation for North American farmers was so dire in the summer that many cut their losses and harvested damaged plants to be sold as feed for animals.”
What this means for consumers is that dwindling supplies and record-high prices will soon affect foods like cereals, oatmeal, and granola bars, all popular breakfast items.
Randy Strychar, president of Ag Commodity Research and Oatinformation.com, said Cheerios, the US’ most popular cereal, is made entirely of oats. He said there’s no substitute for the ingredient: “You can’t make a Cheerio out of barley.”
General Mills, the maker of Cheerios and Nature Valley granola bars, nor Quaker Oats Company, the maker of oatmeal, among others, have yet to announce price increase of their oat products, but that could be imminent or at least create an illusion of stable prices through shrinkflation.
Before retailers can make their sales, they need stuff to sell. That’s where the trouble is this year. Container ships are packed, ports are clogged, contracts with carriers are falling to the wayside. And the rush to ship goods for the holidays is only adding traffic to what was already intense congestion.
“There aren’t enough containers. There aren’t enough ships. There aren’t enough trucks or trains. There is more volume now than any part of the supply chain pipe can adequately handle,” Burlington Stores Chief Financial Officer John Crimmins told analysts in late August. Trying to accelerate and pull forward orders “even further increased the pressure on the supply chain, helping to drive even higher rates,” the executive added.
So not only are retailers competing with each other for sales, they are competing just to get cargo space to ship goods into the country. Freight has skyrocketed as a result, and shipments still lag or even fail to materialize. Many of the bottlenecks are tied to the unexpectedly swift surge in consumer demand in the U.S. this year, combined with capacity shortfalls at numerous points along the supply chain.
Reminder: Here in Texas, this weekend is a back to school sales tax holiday on clothing, school supplies, backpacks, etc. It starts Friday and runs through midnight Sunday.
So if you’ve been holding off buying some clothes or shoes, this weekend would be a good time…
