Biden suspends free at-home COVID tests: https://www.usnews.com/news/us/articles/2022-08-29/u-s-govt-to-suspend-free-covid-19-test-orders-next-week . Congress has not passed adequate funding for the program. WSJ: More: https://www.wsj.com/articles/u-s-government-to-pause-free-at-home-covid-19-tests-11661791266 .
Jill Biden negative for COVID: https://www.usnews.com/news/top-news/articles/2022-08-29/u-s-first-lady-jill-biden-tests-negative-for-covid-19 . The President and his wife have certainly demonstrated the limits of current Paxlovid therapy.
WSJ: Many Americans continue COVID isolation: https://www.wsj.com/articles/why-some-americans-are-still-isolating-from-covid-19-11661713438 .
Sotomayor allows NYC vaccine mandate: https://www.usnews.com/news/top-news/articles/2022-08-29/u-s-supreme-courts-sotomayor-keeps-new-york-city-covid-vaccine-mandate .
Federal appeals court narrows vaccine mandate injunction: https://apnews.com/article/biden-covid-health-government-and-politics-georgia-860fa72a878c6d0cb24bfea66c9fcf59 .
WSJ: Effects of Obamacare subsidy extensions in Inflation Reduction Act: https://www.wsj.com/articles/health-insurers-are-big-winners-in-bidens-inflation-law-11661716372 . This article misleads by simply quoting Centene’s revenue growth without mentioning that much of that has come from acquisitions: https://en.wikipedia.org/wiki/Centene_Corporation .
China raises COVID restrictions again: https://www.usnews.com/news/world/articles/2022-08-30/populous-chinese-cities-including-shenzhen-ramp-up-covid-curbs . This unwillingness to deal with reality continues to crush their economy, and things are getting worse. More: https://www.usnews.com/news/world/articles/2022-08-29/it-felt-like-my-insides-were-crying-china-covid-curbs-hit-youth-mental-health .
China’s Zero COVID policy causes US firms to back off investments there: https://money.usnews.com/investing/news/articles/2022-08-29/u-s-firms-rethink-china-investment-on-covid-concerns-business-group-survey .
WSJ: China’s property market continues to unravel: https://www.wsj.com/articles/chinas-property-slowdown-sends-bank-shares-tumbling-11661765601 .
Even the Chinese are speaking against Zero COVID: https://apnews.com/article/covid-health-china-united-states-f0518bba56de9e97a6e81923cf8c1c0e . Given the rarity and risks of dissent in China, this is a strong indication of dissatisfaction within China.
The global recession: China’s debt bomb and Zero COVID: https://asia.nikkei.com/Opinion/China-s-debt-bomb-looks-ready-to-explode . This CMC professor is well known, well informed and highly respected. Here is an even more strident warning: https://thehill.com/opinion/international/3619006-how-chinas-dim-prospects-may-turn-into-disaster/ . This article contains the eye-popping assertion that China’s government debt will reach 275% of GDP this year, with much of the debt uncollectible.
As we have argued for some time, China’s growth must slow as the real estate debt contagion grows. Also, their rapidly aging population means the growth slowdown will be long-term. And you thought we had economic problems.
European energy prices go through the roof: https://www.cnn.com/2022/08/29/energy/europe-power-prices/index.html . Again, this will affect not only European inflation but US inflation as well. More: https://markets.businessinsider.com/news/commodities/european-natural-gas-prices-electricity-plunge-biggest-decline-since-march-2022-8 . The second article does not contradict the first. European energy prices are volatile and quite high. WSJ: EU meets to address energy costs: https://www.wsj.com/articles/eu-set-to-tackle-soaring-energy-prices-with-electricity-market-overhaul-11661801614 .
Can better targeted policy avoid a US recession?: https://www.courant.com/opinion/op-ed/hc-op-robert-reich-09042022-20220829-vou36ka2bzh2ho6s4af4alpkaa-story.html . Robert Reich raises an important point here. If (as we all know) interest rates are a poor tool to correct current inflation, could other policy alternatives control inflation without creating the risk of recession? Yes. Reich dismisses the two he mentions, but I’m not sure why. The Nixon administration adopted wage and price controls, so price controls at least are not out of the question. However, a windfall profits tax (his alternative) is less likely to control current inflation.
There is a larger issue we need to get our head around, and that is the nature of work. My parents’ generation included many who worked 35 years at the same company and retired with a comfortable pension. Today, pensions are mostly limited to the public sector. Now you are lucky to stay 5 years in the same job in the private sector. This does not bode well for things like 30-year mortgages.
A major component of this rethinking is automation. For just one example, truck drivers are ever nearer to displacement: https://www.autoblog.com/2022/08/29/tesla-self-driving-end-of-2022-elon-musk/ . So what is the solution to the changes in work? Society continues to place an ever increasing premium on innovation, so today’s student should pivot toward broad skills development with an emphasis on creative thought. Those not having an academic bent should consider niche employment in an industry where they can run their own small company (for example, plumber or electrician) and ongoing demand continues long-term.
In short, young people are going to need to think creatively about their own situation to secure a stable longer-term future. And the first question is and must remain, what do you enjoy doing?
Ukrainians commence new offensive in the south: https://www.nbcnews.com/news/world/ukraine-counteroffensive-russian-held-south-kherson-rcna45265 . WSJ: More: https://www.wsj.com/articles/ukraine-says-it-has-launched-counteroffensive-in-south-11661781304 .
WSJ: Ukraine war continues to reduce US armaments stockpile: https://www.wsj.com/articles/ukraine-war-depleting-u-s-ammunition-stockpiles-sparking-pentagon-concern-11661792188 . Again, we have a capacity to ramp up arms production which the Russians simply cannot match.
WSJ: UN inspectors head to Ukrainian nuclear plant: https://www.wsj.com/articles/u-n-inspectors-head-to-ukraine-nuclear-plant-as-safety-fears-grow-11661764952 .
DOJ concludes a limited number of documents in Mar-a-Lago search may contain attorney-client privileged material: https://apnews.com/article/florida-donald-trump-mar-a-lago-government-and-politics-92eadcf7c102d1f64b8603caa816e796 . WSJ: More: https://www.wsj.com/articles/some-attorney-client-protected-documents-found-in-mar-a-lago-search-justice-department-says-11661788066 . It seems clear that the classified information must be returned to the government; that should not be made available to another set of eyes. Most non-classified information should also be returned to the government if it is government property. Documents which are not government property are likely outside the search warrant and should be returned to OJ. That leaves a very narrow category of documents for special master review.
In short, DOJ is making a smart and constructive attempt to limit delays caused by the special master process.
Media babbles about OJ’s defense problems: https://www.benzinga.com/news/22/08/28663222/trump-hastily-assembles-legal-team-to-fight-mar-a-lago-raid-case-but-defense-arguments-could-fall-fl . The best information on OJ’s legal team problems was provided by Claire McCaskill on Meet the Press yesterday (Sunday). She said she was aware of several major law firms who turned down representation, and one top attorney who received a call but did not return it. When you have an unwinnable but highly public case together with a long-term reputation for not paying fees you owe, capable people walk away. Remember, OJ even stiffed Rudy. OJ is also a terrible client who is seriously damaging his weak/nonexistent case: https://www.rawstory.com/trump-legal-problems-2657958627/ .
OJ demands reinstatement as “rightful president”: https://www.msn.com/en-us/news/politics/trump-demands-reinstatement-as-rightful-president-or-a-new-election-immediately-as-some-republicans-seek-distance-from-him/ar-AA11fn5o?cvid=3d0d3006975f4551865124e3e34cbb80 . Seriously, what does it take for GOP voters to walk away from this lunatic?
January 6 insurrectionist gets 55 months in prison: https://apnews.com/article/capitol-siege-donald-trump-prisons-congress-proud-boys-a3edd8bbd5c7262a5528284655d23c1b . As noted before, the sentences lengthen as the prosecutors work their way up the food chain. While his attorney feels the sentence is disproportionately long because his client didn’t assault anyone, this ignores (1) this guy was a Proud Boys member (2) who was already on probation and was wearing an ankle bracelet at the Capitol.
Musk says asteroid will wipe out mammals on Earth: https://www.benzinga.com/news/22/08/28679310/elon-musk-warns-just-a-matter-of-time-before-event-that-led-to-extinction-of-dinosaurs-repeats . What a remarkably stupid statement from an engineer. We are already tracking asteroids and working on ways to divert them from Earth. That is a vastly simpler problem than terraforming Mars. After this bizarre comment, it appears Musk’s drift toward the GOP was the initial symptom of approaching senility.
GOP searches for a plaintiff in student loan debt relief fight: https://www.yahoo.com/news/republicans-search-someone-sue-over-225753593.html . As noted here previously, standing is a major procedural problem for this lawsuit. This article makes the interesting point that the Supreme Court’s recent ruling involving the EPA could put their new “major issues” thrust to good use in this case. But that does not overcome the standing problem.
Surfside condo lawyers awarded over $70 million in fees: https://apnews.com/article/miami-florida-surfside-building-collapse-56d9824ebe0127f3a35a2e2f3d7f7f09 . The article suggests that the fee award is somehow egregious. Lawyers charge an hourly or flat rate in routine cases. In major liability cases like this one, it is common for lawyers to receive a contingency fee of one-third of the judgment.
Here, the over $1 billion achieved in settling the case is indeed unprecedented, as is resolving this complex litigation in about a year. The settlement money comes from 37 sources, so settling the case took a ton of time. And the fee award is about 6½% of the award. The attorneys were generous in this case based on common compensation standards.
WSJ: The immortal jellyfish: https://www.wsj.com/articles/scientists-move-closer-to-unlocking-the-secrets-of-the-immortal-jellyfish-and-possibly-human-aging-11661799139 .
NASA Artemis launch scrubbed due to fuel line issue: https://www.nbcnews.com/science/space/artemis-launch-scrubbed-due-engine-issue-rcna45244 . The launch has been postponed until the technical issue can be overcome. WSJ: More: https://www.wsj.com/articles/nasa-set-to-blast-off-rocket-on-crucial-artemis-i-mission-11661765728 .
Clarification: Yesterday, I commented on the Union Stations across the country reflecting the Civil War. To be fair, that name derives from the Union Pacific railway. However, the Union Pacific was founded in Washington, DC, on July 1, 1862. So the railroad was indeed named after the Union, and the names of the stations reflected the company name. And, hey, Union Station abbreviates as US. You may also recall that UP’s logo is a stylized shield utilizing the stars and stripes.