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October 2021

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Gobbling China’s exports, US sinks into dependency Illustrating the state of America’s supply chains, orders for US-made manufacturing equipment are at 1992 level David Goldman

By on October 14th, 2021

https://asiatimes.com/2021/10/gobbling-chinas-exports-us-sinks-into-dependency/

China’s exports rose 28% in September from the year-earlier level, more than the analyst consensus had forecast. More important is that China’s exports to the United States have risen by 31% since January 2018, when President Trump imposed tariffs on a wide range of US imports from China. At a seasonally adjusted annual rate, the US is buying $635 billion of Chinese goods, equal to a staggering 27% of US manufacturing Gross Domestic Product.

During the same period, China’s exports to South Korea rose by 50%, to Taiwan by 60%, and to Germany by 61%, but China imports almost as much from these three countries.

Demand for Chinese goods after the pandemic disruption has strained China’s production capacity, contributing to a power shortage that is now forcing cutbacks in key industries, including computer chips.

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ENVIRONMENT AND JUNK SCIENCE Comments turned off

Biden’s Climate Ambitions Are Too Costly for Voters And even if Americans were willing to pay, it’d have little impact on rising temperatures. By Bjorn Lomborg

By on October 14th, 2021

https://www.wsj.com/articles/climate-change-cost-economy-emissions-tax-per-person-net-zero-joe-biden-11634159179?mod=opinion_lead_pos8

Politicians across the world routinely promise unprecedented reductions of carbon emissions but make little mention of the cost, often covering with vivid projections of green jobs. Yet the economic damage these policies would do is much greater than what most voters would tolerate, while the climate benefits are smaller than many would imagine.

The annual cost of the promises to which President Obama signed on under the Paris climate agreement would have hit roughly $50 billion in 2030, or about $140 per person. Many studies show Americans are willing to pay a couple of hundred dollars a year to remedy climate change, but this data is highly skewed by a small minority willing to spend thousands of dollars. A recent Washington Post survey found that a majority of Americans would vote against a $24 annual climate tax on their electricity bills. Even if they’d hand over $140, it’d buy them little. If Mr. Obama’s agreement were sustained through 2100, it would reduce global temperatures by a minuscule 0.06 degree Fahrenheit.

President Biden is pushing much stronger climate policies with much higher price tags. Before his election, he promised to spend $2 trillion over four years on climate policies—equivalent to $1,500 per person per year. And Mr. Biden’s current promise—100% carbon emission reduction by 2050—will be even more phenomenally expensive.

A new study in Nature finds that a 95% reduction in American carbon emissions by 2050 will annually cost 11.9% of U.S. gross domestic product. To put that in perspective: Total expenditure on Social Security, Medicare and Medicaid came to 11.6% of GDP in 2019. The annual cost of trying to hit Mr. Biden’s target will rise to $4.4 trillion by 2050. That’s more than everything the federal government is projected to take in this year in tax revenue. It breaks down to $11,300 per person per year, or almost 500 times more than what a majority of Americans is willing to pay.

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NATIONAL NEWS & OPINION Comments turned off

Confronting the Supply Chain Crisis Joel Kotkin

By on October 14th, 2021

https://quillette.com/2021/10/13/confronting-the-supply-chain-crisis/

For a generation, the Long Beach and Los Angeles harbors in California handled more than 40 percent of all container cargo headed into the US and epitomized the power of a globalizing economy. Today, the ships—mostly from Asia—still dock, but they must wait in a seemingly endless conga line of as many as 60 vessels, sometimes for as long as three weeks. These are the worst delays in modern history, and the price per container has risen to as much as 10 times its cost before the pandemic. The shipping crisis is now projected to last through 2023.

A pandemic-driven shortage of parts and labor has combined with a congested transport system to create an inflationary spike, with shipping rates doubling on some routes. Prices for everything from soybeans to natural gas have soared as supplies take longer to produce and arrive, and this high inflation is wiping out wage gains in the US, the UK, and Germany. The chaos on the ground may not disturb the lifestyles of the tech and financial elites, but it is hurting the middle and working classes, the groups most threatened by surging inflation.

The supply chain disaster has also revealed the existence of crippling economic dependence, particularly on China, in high-income countries. Today, whole industries in the West—from medical equipment to chip and car makers to food—rely on China for finished products and key components. When China cannot (or decides not to) supply these parts, whole industries suffer debilitating supply chain shortages. The notion of a rational, self-regulating market system is unraveling and may yet presage the demise of the prevailing neoliberal era.

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NATIONAL NEWS & OPINION Comments turned off

Gas prices at 7-year high and rising as Biden wages offensive against domestic energy producers Oil and gas supply is too low to meet U.S. demand, due to a combination of factors, including halting of new leases on federal land, halting the Keystone Pipeline, and increasing regulatory burdens, industry analysts argue.By Bethany Blankley

By on October 14th, 2021

https://justthenews.com/politics-policy/energy/tugas-prices-seven-year-high-and-rising-biden-offensive-against-domestic-oil

“Average gas price: June 2020: $2.21 June 2021: $3.07 President Biden’s economy!” Rep. Jim Jordan (R-Ohio) tweeted during the summer. 

“You forgot to mention that gas prices are the same now as they were in June 2018,” White House Press Secretary Jen Psaki fired back. “Or that this time last year unemployment was 11.1% — today it’s 5.8%. @POTUS agrees families shouldn’t pay more at the pump — that’s why he’s opposed to GOP proposals to raise the gas tax.”

Yet, the Democrats’ $3.5 trillion budget reconciliation bill reportedly includes an estimated $6 billion worth of charges on U.S. oil and gas operators on federal lands, which could effectively put mom and pop small business, and minority and Native-owned operations out of business, in addition to killing tens of thousands of jobs.   

There isn’t enough oil and gas supply to meet U.S. demand, due to a combination of factors, including the Biden administration halting new leases on federal land, halting the Keystone Pipeline, increasing regulatory burdens, and other measures that will take years to correct, those in the industry argue.

In one of his first acts in office, President Joe Biden, through executive order, halted the issuance of new oil and gas leases on federal lands, effectively stopping much production for existing operations. He also eliminated low-cost Canadian crude from being processed by mid-continent and Gulf Coast and U.S. refiners by prohibiting the Keystone pipeline from opening. 

If Biden had not severely hampered domestic production, the U.S. would have an ample supply of oil and gas and commensurately lower costs at the pump, industry experts argue. 

The $6 billion in additional costs imposed on the industry included in the budget reconciliation bill include new methane fees, inspection fees, severance fees, and bonding requirements, as well as additional requirements for operating on federal lands.

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