Posts Tagged ‘supply chain’

LinkSwarm for October 15, 2021

Friday, October 15th, 2021

Biden is bumbling, borders are crumbling, bankers are plotting, and Art is out. Welcome to another Friday LinkSwarm!

  • Stephen Green finds out the real reason behind the supply chain SNAFUs: California Democrats changing the rules because they weren’t getting enough kickbacks and graft from an efficiently functioning transportation system.

    The immediate problem, the one in Los Angeles, has been caused by the state’s vindictively regulatory state government.

    We’ll get to the trucker shortage in just a moment, but California also faces a shortage of trucks for them to drive.

    Twitter user Jerry Oakley reminds us that “Carriers domiciled in California with trucks older than 2011 model, or using engines manufactured before 2010, will need to meet the Board’s new Truck and Bus Regulation beginning in 2020.” Otherwise, “Their vehicles will be blocked from registration with the state’s DMV,” according to California law.

    Snip.

    As a result, trucks aren’t being purchased to replace the ones being regulated out of business.

    But even if there were plenty of trucks in California, there wouldn’t be enough truckers to drive them — and it isn’t because the truckers are too old.

    “Traditionally the ports have been served by Owner Operators,” Oakley says, who are non-union. But under AB-5, “California has now banned Owner Operators.”

    Just like the union longshoremen, union truckers work under a whole host of work rules that simply can’t accommodate crisis conditions like the ones in Los Angeles.

    In fact, those work rules helped create the crisis conditions.

    The exact language of AB-5 was copied and pasted into Presidentish Joe Biden’s $5 trillion (Or: Five Million Million Dollar) “Build Back Better” bill currently stalled in the Senate.

    It’s one thing for Californians to screw themselves over, but AB-5 is hurting the entire country’s economy — and Washington Democrats want to take AB-5 nationwide.

  • Social Justice doesn’t want to win, it wants to destroy you:

    If you’re unaware, [David] Shor was canceled for accurately summarizing the contents of an academic paper. Shor made a point that he felt was important for the messaging of the Democrats. At the time the country was exploding in riots aligned with BlackLivesMatter and driven by anger over the deaths of George Floyd and Breanna Taylor. Shor linked to a paper that argued that riots have bad political consequences for Democrats. This would not seem to be particularly inflammatory; people indiscriminately burning and smashing shit has little obvious utility for the marginalized or anyone else. But Shor lost his job for tweeting that paper and agreeing with its thesis. Similarly, the Intercept’s Lee Fang was absolutely mobbed for the crime of recording an interview with a young Black man who was critical of the riots and the protest movement from which they sprang. He almost lost his job, as well.

    (Here’s a fun tip for you all: if you have the power to get someone fired or otherwise ruin their life you are not a powerless, marginalized Other.)

    Not that they had rebutted a particularly coherent pro-riot argument. There was little in the way of defense of riots in 2020 at all, really. Many attempted to invoke Martin Luther King in that regard, which is hilarious and bizarre concerning a man who among many other critiques of riots said that they “are not revolutionary but reactionary because they invite defeat; they offer an emotional catharsis, but they must be followed by a sense of futility,” and that close to the end of his life. (In their defense, almost no one who invokes MLK has actually read him.) But what Shor and Fang were guilty of was not of breaking with some intellectual mandate within liberalism but with speaking out of turn, with criticizing the wrong people. The difference between Shor and Fang’s criticism of the pro-riot side and the behavior of those who rose against them is that Shor and Fang never tried to destroy anyone, didn’t tweet at anyone’s boss in an attempt to get them fired, didn’t have the inclination or the power to punish those who dared to disagree with them. But those who targeted them were operating in a bizarre liberal discursive culture where, if you dress up what you’re doing in vague language about oppression, you can operate however you’d like without rebuke and attempt to ruin the life of whoever you please.

    Snip.

    The left-of-center is in a profoundly strange and deeply unhealthy place. In the span of a decade or less a bizarre form of linguistically-radical but substantively-conservative identity neoliberalism descended from decaying humanities departments in elite universities and infected social media like Tumblr and Twitter, through which it conquered the media and entertainment industries, the nonprofit industrial complex, and government entities as wide-ranging as the U.S. Department of Education’s Office for Civil Rights and the brass of the Pentagon. That movement now effectively controls the idea-and-story generating power of our society, outside of explicitly conservative media which exists in a large silo but a silo all the same. On any given day the most powerful institutions in the world go to great lengths to mollify the social justice movement, to demonstrate fealty, to avoid its wrath. It’s common now for liberals to deny the influence and power of social justice politics, for inscrutable reasons, but if the current level of control over how people talk publicly is insufficient, I can’t imagine what would placate them. Are most of these institutions false friends? Of course. But that, too, is not much of a defense.

    This tendency to be promiscuous in enthralling elites and powerful institutions should be a clue to the fact that, despite its radical self-branding, the contemporary social justice movement fundamentally serves to empower the status quo. Effective left politics are about convincing various people who are unalike that they have a shared self-interest, that society can do best for them when we do best for others, too. That’s how you build a mass movement, by appealing to people’s sense of self-interest and showing them how they can help their neighbors while they help themselves. But because the social justice movement’s first dictate is to establish a hierarchy of suffering, and to tell those that are purported to suffer less that their problems aren’t problems, no such mass movement is coming. The social justice movement is not just incidentally antagonistic to organizing everyone and recognizing all kinds of people as worthy of our compassion and support. That antagonism is existential. When you ask many people within the movement, “what could we do to convert the white working class to our values?,” they will simply tell you that they don’t want to convert them, that they are not worthy of being a part of their movement. They would rather have targets than converts, to lose as an exclusive moral caste than win as a grubby populist coalition.

    Core to understanding this moment is to realize that the vast majority of people who enforce these politics don’t actually believe in them. They don’t, that is, think that social justice politics as currently composed are healthy or just or likely to result in tangible positive change. There’s a core of true-believers who do, and there’s a group of those who profit directly from the hegemony of social justice politics in elite spaces. (The former two groups have some overlap, but it’s not a perfect circle.) There’s conservative critics, who are both the most natural targets of social justice ire and yet those the social justice movement seem least interested in targeting. There’s an island of misfit toys of left and leftish critics of social justice politics like me. And then there’s the great big mass of people who are just scared.

  • Do global elites have incentives for pushing “Green Energy”/”Climate Change” nonsense? $150 trillion of them.

    Now, in case someone is still confused, none of these institutions, and not a single of the erudite officials running them, give a rat’s ass about the climate, about climate change risks, or about the fate of future generations of Americans (and certainly not about the rising water level sweeping away their massive waterfront mansions): if they did, total US debt and underfunded liabilities wouldn’t be just shy of $160 trillion.

    So what is going on, and why is it that virtually every topic these days has to do with climate change, “net zero”, green energy and ESG?

    The reason – as one would correctly suspect – is money. Some $150 trillion of it.

    Snip.

    How much would this green utopia cost, because if the “net zero”, “ESG”, “green” narrative is pushed so hard 24/7, you know it will cost a lot.

    Turns out it does. A lot, lot.

    Responding rhetorically to the key question, “how much will it cost?”, BofA cuts to the case and writes $150 trillion over 30 years – some $5 trillion in annual investments – amounting to twice current global GDP!

    At this point the report gets good because since it has to be taken seriously, it has to also be at least superficially objective. And here, the details behind the numbers, do we finally learn why the net zero lobby is so intent on pushing this green utopia – simple answer: because it provides an endless stream of taxpayer and debt-funded “investments” which in turn need a just as constant degree of debt monetization by central banks.

    Consider this: the covid pandemic has so far led to roughly $30 trillion in fiscal and monetary stimulus across the developed world. And yet, not even two years later, the effect of this $30 trillion is wearing off, yet despite the Biden’s admin to keep the Covid Crisis at bay, threatening to lock down society at a moment’s notice with the help of the complicit press, the population has made it clear that it will no longer comply with what is clear tyranny of the minority.

    And so, the establishment needs a new perpetual source (and use) of funding, a crisis of sorts, but one wrapped in a virtuous, noble facade. This is where the crusade against climate change comes in.

    Imagine a central banker, destroying your bank account through hyperinflation…forever.
    

  • The Biden Administration has discarded $100 million worth of border wall segments and is paying workers $5 million a day not to build the wall.
  • They’ve also halted worksite immigration enforcement.
  • Controlling (barely) all three branches of government, you wouldn’t expect Democrats to show this much panic.

    he results in 2020 came as a shock to Democrats for several reasons. First, Joe Biden’s official margin of victory, while slightly larger than Obama’s in 2012 at 51.26% to 46.8%, was half the size that polls, such as Nate Silver’s 538, had showed, at 51.8% to 43.4%. But even more concerning for Democrats, the locations of the polling error tended to be not in places where Democrats were strong, but rather either in swing areas where they hoped for gains, or areas where Obama had done well in 2008 and 2012, but Trump had won in 2016. In effect, Democrats won areas they felt were moving in their direction such as Arizona, Pennsylvania, Nevada, and Wisconsin by far less than they expected, and lost states they thought were close such as Iowa, Ohio, and Florida by much larger margins.

    The implications of this in the Presidential race were obscured by the fact that the numbers showed Biden won. But they were keenly felt in the Senate races, where Democrats lost races in Iowa and North Carolina where they believed they were favored, and their candidates did worse than Biden even where he won, such as in Michigan and Maine. The result at the time was to leave the Senate at 50 Republicans and 48 Democrats, a situation transformed by the victory of Democrats Jon Ossoff and Raphael Warnock against a dysfunctional Georgia GOP in January 2021. Nonetheless, it was ominous and it set the tone for Democratic behavior in 2021.

    In light of these results, we can understand that the reason Democrats are now obsessing the filibuster is not because they have a mere 50 seats in the Senate. When Senator Chris Murphy of Connecticut calls out Joe Manchin and Kyrsten Sinema for blocking legislation that 48 Democrats support, he is doing so not because he believes they are likely to be 50 or 52 Senators for it in the future but because he is pretty sure 50 is as good as it is going to get. In 2008, Democrats won 60 Senate seats, and while with hindsight we can see this was a high-water mark, at the time Democrats dreamed bigger. After all, Mitch McConnell had only won 53%-47% in 2008. There were also open seats in states Obama had won in 2008 such as New Hampshire, North Carolina and Florida coming up in 2010, and there was a path to a Democratic supermajority.

    That is not the case after 2020. In 2020, only Susan Collins won reelection in a state won by the Presidential candidate of the opposing party. Democratic challengers, including strong ones such as Montana’s two-term governor, Steve Bullock lost, and lost badly (by 10% in Bullock’s case). This was also not just a 2020 phenomenon. Despite a good year for Democrats overall in 2018, Democratic incumbent Senators lost in Florida, Indiana, and Missouri that year.

    Biden’s underperformance scared Democrats because it indicated a ceiling, rather than a floor for their strength.

    In 2022, Democrats will be defending Senate seats in Arizona, Georgia, Nevada, and New Hampshire, all states that went to Biden, but within margins whereby strong GOP challengers, which exist in all those states, could win. More problematically, the list of Democratic targets includes only Pennsylvania and Wisconsin among states Biden won, and North Carolina and Florida among states Trump won by less than landslide margins. Matching Biden exactly would get the Democrats a gain of two seats; but even in 2020 most Democratic candidates ran behind Biden, and Biden is himself deeply unpopular today.

    The situation in the House is, if anything, worse for the Democrats. Democrats lost 12 House seats in 2020. The impact of redistricting is overblown – Republicans will gain a marginal advantage from the lines, but census results show the areas growing most quickly lean Democrat – yet nonetheless, the Democrat position is so weak that any deterioration in Biden’s position will be fatal to their 2022 hopes.

    In effect, the 2021 Democratic majorities are on a “death watch,” and Democrats’ confused attempts to deal with that realization is determining their current erratic behavior.

    The split in the party is not so much between the moderates and the progressives. It is between progressives and moderates who desire political futures and those who know they have none. Pelosi is able to generally pass left-wing legislation in the House despite her narrow majority because many of her moderates know they are doomed no matter what, and are willing to cast their votes for the progressive agenda. In turn, AOC and the Squad feel free to sabotage any compromises because their own seats are safe and they believe they have time to fight another day, even if it is ten years from now. By contrast, both Sinema and Manchin seem to resent the efforts of other Democrat officials to pressure them to commit political suicide or behave as if they personally are doomed, just because it is true of some of their colleagues. In particular, rhetoric out of the Democrat caucus that Manchin is “probably in his last term anyway” or that Sinema “won’t win reelection” seems predicated on the idea that both should act as if they are finished and behave accordingly.

    But think about the deeper implications of that statement: All moderate Democrats (with the possible exceptions of Manchin and Sinema) are aching to do The Will of the Party and push the most radical, leftmost agenda possible if only it weren’t for the pesky problems of winning elections. Even moderate Democrats are leftwing radicals.

  • Democrats really want to get their hands on all your banking information. Remember how Obama weaponized the IRS? That was just a foretaste. (Hat tip: Director Blue.)
  • Biden: The war against terror is over! Supreme Court: Then why are you still doing all these things that are only legal if a war’s still on? Biden Administration: Yeah, when we said the war against terror was over, we didn’t mean it was over over…
  • You know Merrick Garland’s social justice warrior problem? It gets worse:

    We learned, too, that Merrick Garland’s son-in-law, through his company, Panorama Education, sells CRT materials to public schools. And yesterday, it turned out that Panorama is also spreading material calling Trump and his supporters “white supremacists”

    Alexander “Xan” Tanner, a very White man, is married to Merrick Garland’s daughter. Tanner co-founded Panorama Education, which purports to provide a data platform that delves into students’ psychosocial issues in order to help schools intervene in problems and improve the school climate. In a word, it’s creepy…

    The educational workshop released by Panorama Education, co-founded by Alexander “Xan” Tanner, the group’s president, revolves around “systemic racism” and includes an article as a resource that states the Ku Klux Klan and attendees of Trump’s rallies are both “examples of white supremacy.”

    Garland should be forced to resign.

  • “More Hunter Biden Questions: Art Gallery Repping Him Gets Big Federal COVID Loan.” Try to contain your shock.
  • A husband and wife were arrested for trying to sell U.S. submarine secrets. “Navy nuclear engineer Jonathan Toebe, 42, and wife, Diana, 49, were charged Saturday with selling secret information to an unidentified foreign country.” Bonus! “The woman arrested with her Navy nuclear engineer husband for allegedly selling secret information about nuclear submarines to an undercover FBI agent appears to be vocally in support of Black Lives Matter and ‘resistance’ movements on her social media.” There’s a lot of shocked face in this LinkSwarm…
  • Michigan charges three women with more of that 2020 election fraud that doesn’t exist.

    Investigators determined Trenae Myesha Rainey, 28, a facility employee, did not contact residents as set by procedure and instead filled out the applications and forged the resident’s signature to each application….

    Investigators determined Nancy Juanita Williams, 55, planned to control absentee ballots for legally incapacitated persons under her care by fraudulently submitting 26 absentee ballot applications to nine identified city and township clerks.

  • Sydney Lockdown Finally Ends After 106 Days.” Now Sydney residents just need to track down the people who ordered it and throttle them
  • “School district equity chief canned after racist, anti-white videos surface.” That’s a good start, but every “chief equity officer” should be canned. (Hat tip: Instapundit.)
  • It’s FBI informants all the way down.
  • Empty Shelves Joe.
  • Morgan Freeman still isn’t having any of your defund the police lunacy. “I am not in the least bit for defunding the police.”
  • Democratic Virginia gubernatorial candidate and Clinton toady Terry McAuliffe lies again.

    Democratic gubernatorial candidate Terry McAuliffe incorrectly stated on Thursday night that there were 1,142 children in Virginia’s intensive care unit beds, a gross overestimation of the virus’s current impact in the state.

    “We in Virginia today, 1,142 children are in ICU beds,” McAuliffe stated during a roundtable discussion with local reporters. The statistic is a massive overestimation. Virginia Department of Health statistics show that there are a total of 443 people of all ages currently in ICU beds, a fraction of the figure McAuliffe put forth for children.

    The state database shows the number of Virginians in ICU beds infected with COVID-19 has never come close to 1,142 since the first hospitalizations in March 2020—the peak of individuals hospitalized in the ICU with COVID-19 was on Jan. 13, when there were 587 cases. State records show that just 1,094 individuals younger than 19 years old have been hospitalized with COVID-19 since the beginning of the pandemic. Children, who rarely get seriously ill from the virus, have never made up a significant chunk of hospitalized individuals.

    McAuliffe also said during the roundtable Virginia had “8,000 cases on Monday,” another exaggerated statistic. On Monday, Oct. 4, Virginia saw 1,220 “confirmed” cases and 864 “probable” cases, according to the Virginia Department of Health.

    The state has never seen 8,000 confirmed cases in a day. According to the department, Virginia’s 7-day moving case average peaked at 5,904 on Jan. 8, 2021—a number thousands short of McAuliffe’s case assessment.

    (Hat tip: Instapundit.)

  • Oregon county declares “illegal pot emergency.” On the other hand, the “emergency” is that they can’t seem to regulate illegal pot farms.
  • Eight Texas Constitutional questions are on the November 2nd ballot.
  • “Longtime politician Mark Ridley-Thomas and the former dean of the School of Social Work at a university in Southern California were indicted today on federal corruption charges that allege a bribery scheme in which a Ridley-Thomas relative received substantial benefits from the university in exchange for Ridley-Thomas supporting county contracts and lucrative contract amendments with the university while he served on the Los Angeles County Board of Supervisors.” This is the fed indictment notice, so it doesn’t mention that he’s a lifetime Democrat, in addition to being an LA City Councileman and former state rep.
  • Dwight has more details.
  • Art Acevedo out in Miami. Sounds like a mixture of BS and real Acevedo stupidity. And it’s generally not a good idea to compare Miami Cubans to commies…
  • This is why the left feels compelled to crush police unions: “Chicago Police Union to Defy Vaccine Mandate and Dare the City to Enforce It.” (Hat tip: Stephen Green at Instapundit.)
  • “Buy an electric vehicle,” they said. “They’re just as good and you’ll be saving the earth,” they said. Well surprise! “UK Readying New Law Mandating Home EV Chargers Be Shut Down During Peak Hours.” Also: “Beginning May 30, 2022, all chargers that are installed must be ‘smart’ chargers connected to the internet, allowing their functions to be limited between 8am to 11am and 4pm to 10pm.” Big brother in his squad car’s coming near…
  • Communist China demands that Christian pastor denounce himself for daring to preach the gospel in violation of state doctrine. Oh wait, did I say Communist China? I meant “Canada.”
  • Texas House passes Save Girls Sports act to keep them from having to compete against men.
  • UK: “Sir David Amess: Conservative MP stabbed to death. Police said a 25-year-old man was arrested on suspicion of murder after the attack at a church in Leigh-on-Sea.” Police seem awful tight-lipped on details about the murderer…
  • “Wyoming teenager hauled out of high school in handcuffs for refusing to wear a mask.” Every. Knee. Must. Bend.
  • British baker busted for selling cookies with illegal sprinkles.
  • Amy Alkon posts negative review for company trying to game Amazon reviews. result: Amazon deletes the review.
  • Heh:

  • John Deere workers go on strike.
  • Freedom Flu protest outside Southwest Airlines Monday, October 18:

  • “Southwest Airlines Offering Free Flights To All Passengers Who Are Vaccinated And Can Fly A Plane.
  • When the federal government banned sliced bread, supposedly due to helping the war effort in World War II. But nobody would admit who ordered it, or what scarce wartime commodities it was supposed to save, and the ban was lifted after two months. Sound familiar? Well, except for that whole “admitting the mistake and quickly reversing course” part…
  • You may be metal, but are you reach your hand into a shark’s mouth to remove a hook metal?
  • Armadillocon is this weekend.
  • Get hyped!

  • Supply Chain Disruption Update for October 11, 2021

    Monday, October 11th, 2021

    Supply chain problems have gotten so bad that Derek Thompson at The Atlantic deigns 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.”
    

  • The latest industry to suffer shortages: paints and plastics.

    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.
  • Adding to shipping woes: Marine fuel is at a seven year high.
  • India institutes rolling blackouts over a coal shortage.
  • Brazil is also having to import more natural gas.
  • Energy problems are only expected to get worse:

    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 and roofing supplies are also facing shortages.

    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.

  • Also in short supply: HVAC parts:

    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.

  • Even oats, the lowly horse and breakfast food, is hitting all-time highs.

    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.

  • Retailers say they’re getting ready for a lot of bare shelves.

    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.

  • That’s one reason big retailers like Walmart are chartering their own vessels. (Hat tip: Director Blue.)
  • There’s even a backup for ships to unload at the Port of Houston:

  • Why does UK have a truck driver shortage? Evidently they get treated like garbage compared to European drivers.
  • Are Biden’s Vaccine Mandates About To Destroy The Airline Industry?

    Sunday, October 10th, 2021

    It appears that the Biden Administration vaccine mandate (for which no written rule actual exists) is doing for the American airline industry what it and other Flu Manchu restrictions have already done for the global supply chain.

  • I’m seeing multiple reports that a walkout by air traffic controllers in Jacksonsville have caused hundreds of flight cancellations:

  • It looks like Southwest Airlines pilots are having a massive sickout over the vaccine mandate.

  • Their union is suing the federal government over it:

    In what appears to be one of the first cases of a union pushing back against the new COVID vaccination requirements handed down by the Biden Administration, a union representing pilots at Southwest Airlines is suing to stop the vaccine requirement from being forced until a lawsuit is resolved.

    Bloomberg reports that the union representing Southwest’s pilots has asked a court to grant a temporary stay against the federal vaccination rules until an ongoing lawsuit over what they allege are violations of US labor laws is resolved.

    In a court filing on Friday, the Southwest Airlines Pilots Association also asked for an immediate hearing on the request before a federal court in Dallas, claiming the carrier has continued to take unilateral actions that violate terms of the Railway Labor Act, which governs relations between airlines and employee unions. The “unilateral action” in question is the company’s attempt (at the Biden Administration’s direction) to force workers to either get the jab, or be fired or sent on unpaid leave, Bloomberg reports.

    “The new vaccine mandate unlawfully imposes new conditions of employment and the new policy threatens termination of any pilot not fully vaccinated by December 8, 2021,” the legal filing said. “Southwest Airlines’ additional new and unilateral modification of the parties’ collective bargaining agreement is in clear violation of the RLA.”

    According to the guidelines set out by President Biden (and “voluntarily” embraced by most of the major airlines), Southwest has a deadline of Oct. 4 under the federal mandate for employees to get jabbed or have an approved medical or religious exemption. SW is affected by the mandate because it has contracts with the federal government (like many large businesses).

    The union represents 9,000 pilots at the airline, and a strike could easily disrupt American air travel (remember the air traffic controllers strike in the 1980s?)

  • Keep in mind that almost all the airlines are set to fire pilots that don’t comply. What happens when just about all the airlines are grounded because of employee strikes and sickouts? If you think Biden’s poll numbers are bad now, just wait.
  • It’s not just pilots and air traffic controllers. All sorts of professions, from bus drivers to police officers to ferry operators, are staging sickouts over vaccine mandates in various parts of the country.
  • There’s something about vaccine mandates that are so holy to our leftwing ruling class that they’re willing to tear the country apart to impose them. Some have said money from drug companies, but that explanation seems too simple for how hard they’re fighting to impose them no matter the cost, and the lengths to which the Democratic Media Complex is willing to go to suppress any mention of disagreement with The Holy Narrative.

    This is about control.

    It must be resisted.

    Update: Southwest just cancelled 1,000 more flights. And I’m seeing rumors on Twitter that other airlines crews are joining in:

    LinkSwarm for October 9, 2021

    Saturday, October 9th, 2021

    Biden sinking, China stinking, Facebook’s fake whistleblower, and more border woes. Enjoy a special Saturday LinkSwarm!

  • Of course the Biden Administration tucked a multibillion dollar handout to illegal aliens into the reconciliation bill. It’s what they do. (Hat tip: Stephen Green at Instapundit.)
  • Does this border look controlled to you?

    

  • Related: “69 Percent of Hispanics Disapprove of Biden’s Handling of Immigration.”
  • Indeed, Biden’s poll numbers are so low that even CNN has noticed. “Just 32% of independents approved of how Biden is handling his job while 60% disapprove in a new Quinnipiac University national poll… In 2010, the Republicans picked up 63 seat, with being up 19 points among independents.”
  • Short-term debt limit extension bill passes. Tastes like chicken…
  • The reconciliation bill is deeply hostile to marriage. Well, it’s no surprise, since happily married couples with children are increasingly an obstacle to Democratic Party control…
  • This explains a lot:

    U.S. Attorney General Merrick Garland recently instructed the FBI to begin investigating parents who confront school board administrators over Critical Race Theory indoctrination material. The U.S. Department of Justice issued a memorandum to the FBI instructing them to initiate investigations of any parent attending a local school board meeting who might be viewed as confrontational, intimidating or harassing.

    Attorney General Merrick Garland’s daughter is Rebecca Garland. In 2018 Rebecca Garland married Xan Tanner. Mr. Xan Tanner is the current co-founder of a controversial education service company called Panorama Education. Panorama Education is the ‘social learning’ resource material provider to school districts and teachers that teach Critical Race Theory.

  • Remember Joe Biden’s vaccine mandate? It doesn’t exist.

    So far, all we have is his press conference and other such made-for-media huff-puffing. No such rule even claiming to be legally binding has been issued yet.

    That’s why nearly two dozen Republican attorneys general who have publicly voiced their opposition to the clearly unconstitutional and illegal mandate haven’t yet filed suit against it, the Office of the Indiana Attorney General confirmed for me. There is no mandate to haul into court. And that may be part of the plan.

    According to several sources, so far it appears no such mandate has been sent to the White House’s Office of Information and Regulatory Affairs yet for approval. The White House, the Occupational Safety and Health Administration (OSHA), and the Department of Labor haven’t released any official guidance for the alleged mandate. There is no executive order. There’s nothing but press statements.

    Let the lawsuits against private companies firing people for refusing the vaccine for which no mandate exists begin!

  • “Ontario doctor resigns over forced vaccines, says 80% of ER patients with mysterious issues had both shots.”
  • Holy crap: “Wuhan and US scientists planned to create new coronaviruses.”

    Scientists from Wuhan and the US were planning to create new coronaviruses that did not exist in nature by combining the genetic codes of other viruses, proposals show.

    Documents of a grant application submitted to the US Defense Advanced Research Projects Agency (Darpa), leaked last month, reveal that the international team of scientists planned to mix genetic data of closely related strains and grow completely new viruses.

    A genetics expert working with the World Health Organisation (WHO), who uncovered the plan after studying the proposals in detail, said that if Sars-CoV-2 had been produced in this way, it would explain why a close match has never been found in nature.

    Here’s a novel thought: How about you not do that?

  • Did I mention that Wuhan scientists also wanted to genetically engineer coronaviruses that were more infectious to humans and release aerosols containing “novel chimeric spike proteins” among cave bats in Yunnan, China? And they also applied DARPA grant! Who the hell was asleep at the grant proposal switch while Chinese biological warfare scientists were going full Frankenstein?
  • Also: China started ordering more testing kits six months before we started hearing about the Flu Manchu outbreak.
  • Truth:

    (Hat tip: Director Blue.)

  • Another Chinese real estate developer defaults, this one an Evergrande-linked firm called “Jumbo Fortune Enterprises.”
  • Facebook’s fake “Whistleblower” Frances Haugen was part of the election meddling team that suppressed the Hunter Biden laptop story. Also: “She’s receiving ‘strategic communication guidance’ from former Obama aide Bill Burton’s public relations firm Bryson Gillette, which is run by Democratic operatives. White House Press Secretary Jen Psaki was a senior adviser there until September 2020.” Basically she’s a pawn to let Facebook suppress even more conservative stories.
  • Another day, another hate crime hoax.
  • Amtrak! Come for the crappy service, stay for the routine drug sweeps! (Hat tip: Dwight.)
  • Australian cop resigns over enforcing tyranny:

  • Bank of America, Citigroup and JPMorgan are all scheduled to lose out on Texas government bond underwriting due to their refusal to deal with companies that make modern sporting rifles.
  • Citizens sues five members of the Round Rock ISD school board for violation of the Texas Open records Act.
  • Another day, another shootout on Sixth Street. (Hat tip: Dwight.)
  • “Tesla is moving its headquarters from Palo Alto, California, to Austin, Texas, CEO Elon Musk announced at the company’s shareholder meeting on Thursday.” Given how crappy California’s business climate has become, this was pretty much a forgone conclusion. Come on down, Elon.
  • And here’s the supercondensed backstory:

    If you’re wondering who Lorena Gonzalez, she’s a Democratic California assemblywoman…

  • “Gavin Newsom Named U-Haul Salesperson Of The Year.”
  • Amazon is looking at leaving Seattle. “After years of deteriorating relations with their home city of Seattle and its ultra-progressive city council, Amazon’s CEO [Andy Jassy] made it known that the online giant may look for greener pastures. Citing the city’s hostility toward their presence, Jassy suggested that the suburbs are looking better and better for a new home to its 50,000-employee home base.”
  • Speaking of Seattle, over 400 police officers may be facing termination over refusal to get vaccinated. Good thing Seattle is a peaceful utopia where there are never any antifa riots…
  • Venezuela subtracts six zeros from its currency. This is your economy on socialism.
  • “Afghanistan is literally about to go back to the Dark Ages since the Taliban didn’t realize they have to pay their electric bills.”
  • The China/India border is getting frisky again. “Sources mentioned that patrol parties of both the countries came face-to-face in Arunachal Pradesh, which led to some jostling before they disengaged. The incident took place last week near Yangtse in the Tawang sector.” Arunachal Pradesh is basically the complete opposite end of northern India from where most of last year’s clashes occurred.
  • Did China lose coal shipments waiting for docks to open up to India? Source is a little “rah-rah India,” so grains of salt are probably in order.
  • Are you using the wrong plunger? This plumber seems to think that this one is the new hotness for clearing toilets.
  • Heh:

  • How to tell a prison from a public school.
  • “Hackers Warn That If Demands Aren’t Met They Will Reactivate Facebook.”
  • Let’s ride!

  • Supply Chain Disruption Update for September 28, 2021

    Tuesday, September 28th, 2021

    I didn’t expect to do another supply chain disruption update just two days after the last one, but there’s a lot more news popping up:

  • An energy shortage is plaguing China:

    Residents in three north-east Chinese provinces experienced unannounced power cuts as the electricity shortage which initially hit factories spreads to homes.

    People living in Liaoning, Jilin and Heilongjiang provinces complained on social media about the lack of heating, and lifts and traffic lights not working.

    Local media in China – which is highly dependent on coal for power – said the cause was a surge in coal prices leading to short supply. As shown in the chart below, Chinese thermal coal futures have more than doubled in price in the past year.

    There are several reasons for the surge in thermal coal, among them already extremely tight energy supply globally (that’s already seen chaos engulf markets in Europe); the sharp economic rebound from COVID lockdowns that has boosted demand from households and businesses; a warm summer which led to extreme air condition consumption across China; the escalating trade spat with Australia which had depressed the coal trade and Chinese power companies ramping up power purchases to ensure winter coal supply.

    Then there is Beijing’s pursuit of curbing carbon emissions – Xi Jinping wants to ensure blue skies at the Winter Olympics in Beijing next February, showing the international community that he’s serious about de-carbonizing the economy – that has led to artificial bottlenecks in the coal supply chain.

  • More than two hundred container ships are waiting to load up outside Chinese ports:

    There are over 60 container ships full of import cargo stuck offshore of Los Angeles and Long Beach, but there are more than double that — 154 as of Friday — waiting to load export cargo off Shanghai and Ningbo in China, according to eeSea, a company that analyzes carrier schedules.

    The number of container ships anchored off Shanghai and Ningbo has surged over recent weeks. There are now 242 container ships waiting for berths countrywide. Whether it’s due to heavy export volumes, Typhoon Chanthu or COVID, rising congestion in China is yet another wild card for the trans-Pacific trade.

    Snip.

    A major driver of congestion on both sides of the Pacific Ocean: Landside capacity (terminals, trucking, rail, warehousing) is limited, but the vessel capacity of a single ocean trade lane is highly flexible.

    While the number of ships in the world is finite, operators can shift ships to wherever they make the most money. And the trans-Pacific is now a particularly lucrative trade: Spot rates including premiums can top $20,000 per forty-foot equivalent unit (FEU).

    “These assets [ships] are super-mobile,” said Sundboell. “What’s happening now is the opposite of what dogged the industry for the past 20 years. Five years ago, people were asking: How can the trans-Pacific rate drop from $2,000 to $1,500 [per FEU] in the space of just six days? It was because you could take a vessel from one place and sail it someplace else, and suddenly there were more ships and a price war and rates dropped.

    “Now we’re seeing the opposite,” he said. As ship operators pile more capacity into the trans-Pacific, congestion rises, delays mount, the incentive for shippers to pay premiums is supported, and all-in rates remain at record highs.

  • Despite shortages, L.A. and Long Beach still don’t operate 24/7.

    Despite the backlog, the busiest U.S. port still shuts down for hours on most days and is closed on Sundays, the Wall Street Journal reports. “Tens of thousands” of containers remain stuck at the ports of Los Angeles and Long Beach. More than 60 ships are lined up to dock, the report says.

    More than 25% of all American imports pass through one of the two ports. LA and Long Beach collectively manage 13 private container terminals. Long Beach officials finally said last week they would try operating 24 hours a day between Monday and Thursday. LA says it’s going to keep existing hours and wait for the rest of the supply chain to extend their hours first.

  • More data points:

  • In Europe, a natural gas shortage has sent price soaring because surprise, surprise, Russia has cut supplies by 57%.
  • The supply chain shortages are hitting small businesses hard.
  • And to top it off, there’s a turkey shortage in Britain due to the aforementioned driver shortage.
  • Finally, the Biden’s Administration’s vaccine mandate is about to make things much worse. “The looming federal mandate on COVID-19 vaccines for large employers could make hiring goals more difficult to reach for warehousing and distribution operations, which are already short on employees, some supply chain experts say.”
  • Keep in mind: None of the supply chain issues are the result of Flu Manchu, but almost all are the result of government overreaction to it.