Following Up: Podcast Now On-Line of National Radio Interview on Pelosi Taiwan Visit and U.S. Stagflation Prospects

Tags

Asia-Pacific, China, decoupling, Following Up, geopolitics, Indo-Pacific, inflation, manufacturing, Market Wrap with Moe Ansari, Nancy Pelosi, national security, Pelosi, recession, sanctions, semiconductors, stagflation, Taiwan, tech, Trade, trade deficit

I’m pleased to announce that the podcast is now on-line of my interview last night on the nationally syndicated “Market Wrap with Moe Ansari.” Click here for a timely conversation on two headline issues:  how U.S. House Speaker Nancy Pelosi’s controversial visit to Taiwan could hit U.S.-China economic relations and America’s access to Taiwan’s world-class semiconductor manufacturing prowess; and why what’s in store for the U.S. economy could be even worse than the recession that’s now widely forecast.

And keep on checking in with RealityChek for news of upcoming media appearances and other developments.

Following Up: Podcast Now On-Line of National Radio Interview on the Biden-Xi Jinping Phone Call

Tags

Asia-Pacific, Biden, CBS Eye on the World with John Batchelor, China, Following Up, Gordon Chang, Indo-Pacific, innovation, national security, semiconductors, Taiwan, tech, Xi JInPing

I’m pleased to announce that the podcast is now on-line of my interview last night on the nationally syndicated “CBS Eye on the World with John Batchelor.”

Click here for a timely discussion, with co-host Gordon G. Chang, of what President Biden should have said today in his telephone conversation with Chinese dictator Xi Jinping, and whether or not the United States can avoid going to war with the People’s Republic to keep Taiwan’s world-leading semiconductor manufacturing prowess out of Beijing’s hands.

And keep checking in with RealityChek for news of upcoming media appearances and other developments.

Following Up: Podcast Now On-Line of Biden and the Supply Chain Crisis National Radio Interview

Tags

Biden, Biden administration, CBS Eye on the World with John Batchelor, Following Up, friend-shoring, Gordon G. Chang, health security, manufacturing, medical devices, national security, reshoring, semiconductors, supply chain

I’m pleased to announce that the podcast is now on-line of last night’s interview on the nationally syndicated “CBS Eye on the World with John Batchelor.” Click here for a timely discussion among John, co-host Gordon G. Chang, and yours truly on whether the Biden administration has a handle on the supply chain threats plaguing the U.S. economy in critical industries ranging from semiconductors to healthcare products.

And keep checking in with RealityChek for news of upcoming media appearances and other developments.

Following Up: A Gift and a Goof on Tariffs and Inflation

Tags

Biden, Biden administration, Bloomberg.com, business, CBS Eye on the World with John Batchelor, China, cost of living, economics, Following Up, inflation, prices, tariffs, Trade

Commentators usually don’t get gifts like the one I received in yesterday’s Bloomberg.com report on the latest developments in the continuing Will-He-Won’t-He drama concerning President Biden’s upcoming decision on cutting or eliminating some tariffs on U.S. imports from China in order to ease raging inflation.

As I’ve repeatedly emphasized (most recently in print, here), to anyone who knows anything about business, the idea that tariff levels and consumer prices have much to do with each other is nonsensical. The reason? It assumes that businesses base what they charge their customers on the costs they pay for the goods and services for whatever they’re trying to sell.

But actually, the predominant driver of their selling prices, at least over any significant period of time, is the level of demand for their products or services. If it remains strong, businesses will keep raising their selling prices as high as they can regardless of what their input costs are. That’s a great way to increase profits. And if they want to keep growing these profits (and what business doesn’t?), they’ll keep raising these prices as long as customers will pay them – as long as that demand stays strong.

When do businesses lower selling prices? For those that want to maximize profits (and what business doesn’t?), only when demand for their products and services weaken – that is, when customers decide for whatever reason that these prices have risen too high.

So there is absolutely no reason to believe that lower prices for inputs from China independent of demand will cause businesses to lower the prices they charge their customers, and thus help bring inflation rates down. Instead, they’ll just pocket the new profits. And according to the aforementioned Bloomberg piece, we just got confirmation from the horse’s mouth – businesses themselves.

Reported the Bloomberg correspondents:

“The White House has asked retail companies for a commitment to lower prices following any duty reductions but executives rebuffed that request and told US officials it was an unrealistic expectation,” said “people familiar with the deliberations, who asked not to be identified.”

And apparently there are no plans to seek public price-reduction commitments from sectors of the economy that receive any tariff relief. Maybe because at least some administration officials finally recognize how ludicrous the tariff-inflation connection has always been?

But even as the Bloomberg reporters gave me this gift on the subject, I made a goof. During my latest radio interview on the subject on “CBS Eye on the World with John Batchelor,” I spazzed out and several times referred to businesses never cutting their “costs” when their input costs fell. I hope that most listeners understood that I was trying to say that they never cut their selling prices, but the record needs to be set straight. Here’s a link to the podcast, and apologies for any confusion.

Following Up: Biden’s Belief that Cutting China Tariffs Can Cool Inflation is Doofier Than Ever

Tags

Biden, Biden administration, China, consumer price index, core CPI, cost of living, CPI, Following Up, import prices, inflation, tariffs

More than a month has passed since RealityChek last looked at the question of whether the Biden administration is right in claiming that cutting or eliminating some of the current U.S. tariffs on imports from China can help cool torrid inflation Now some new data releases from the federal government it’s running make clear that this belief has never looked more fact-free.

Those releases – both bringing their stories up to May – are the new figures on U.S. inflation, and the latest statistics on the prices of imports. And they continue to show that, throughout the recent period of super-high inflation, the prices of products Americans have been buying from China have risen much more slowly than the inflation rate both for the set of goods most closely approximating the nature of the nation’s purchases from the People’s Republic (the core rate that excludes food and energy prices), and for the overall imports that most closely approximate those Chinese imports (non-fuel imports).

Here are yearly percentage price increase figures by month for all three of these figures between the month when the annual core CPI began speeding up notably and May.

                               core CPI        non-fuel goods imports      imports from China

Oct. 2021                   4.59                        5.5                                    4.38

Nov. 2021                  4.95                        6.3                                    4.48

Dec. 2021                  5.48                        6.4                                    4.76

Jan. 2022                   6.04                        6.9                                    4.84

Feb. 2022                  6.42                        7.2                                    4.83

March 2022              6.44                        7.5                                     5.01

April 2022                6.14                        7.2                                    4.89

May 2022                 6.01                        5.9                                     4.57

For good measure, here’s how much these three inflation rates have increased altogether since October, 2021:

core CPI:                        30.94 percent

non-oil goods imports:    7.27 percent

China imports:                 4.34 percent

In other words, for the last eight data months, the inflation rate for imports from China has risen by less than half the rate of that for comparable imports from the entire world, and more than seven times more slowly than the core CPI.

Truth to tell, as I’ve written (in the above linked and other posts), the idea that the China tariffs have fueled U.S. inflation at all was always nonsensical even by the degraded standards of the last few years. After all, they represented a one-time cost increase – so they can’t possibly explain why American prices have been rising uusually strongly for months. These one-time increases were imposed in phases between 2018 and 2019 – years before U.S. inflation hit multi-decade highs and began speeding up ever faster from there. And many of the Made in China goods that the Biden administration calls “non-strategic” and for which tariffs therefore are supposedly expendable were never were tariffed to begin with.

In addition, the idea that, given China’s recent behavior, any steps should be taken that would help the economy of the People’s Republic, and in exchange for exactly nothing, is just whacko — at best. 

For many months, most Americans have been telling pollsters they have grave doubts about President Biden’s fitness for office. (Here’s the latest example.) Imagine what they’d think of abilities if it was widely reported that he’s keen on a policy move based on ideas about China tariffs and inflation that are utterly detached from reality. 

 

Following Up: Still No Signs That Abortion, Guns — or January 6th — Are Democratic Midterms Lifesavers

Tags

abortion, Biden, Buffalo shooting, Democrats, Donald Trump, election 2022, election 2024, Following Up, gun control, January 6 committee, mass shootings, midterms 2022, polls, RealClearPolitics.com, Republicans, Roe v. Wade, SCOTUS, Supreme Court, Uvalde shooting

Since early May, American politics has been rocked by the kinds of major shocks that I can’t recall coming so fast and furiously since at least the Nixon impeachment summer of 1974, and maybe since the spring of 1968 — when the Vietnam War’s Tet Offensive led to Lyndon Johnson’s withdrawal from that year’s presidential race,and was followed by the assassinations of civil rights leader Dr. Martin Luther King and New York Democratic Senator Robert F. Kennedy (for starters).

The last two months of this year alone have been marked by the leaked draft and final release of the Supreme Court ruling that ended nearly fifty years of a national right to an abortion, two appalling mass shootings (one racially motivated in Buffalo, New York, and one of school children in Uvalde, Texas), and televised Congressional hearings that have bombarded the nation with reminders of both the disgraceful January 6^th Capitol attack and former President Donald Trump’s reckless behavior that day.

On net, these developments would seem to damage Republicans’ chances of an midterms election landslide of epic proportions this November. As I’ve noted, even though the abortion developments could motivate heavily Republican anti-choice voters, too, the overturning of the 1973 Roe v. Wade decision at least gave Democrats one reason for optimism where none could plausibly be detected – because everything we know about public opinion tells us that Americans decisively favor keeping Roe. (The same arguments hold for mass shootings, IMO, as do poll results on gun control).

But at the end of May, I reported the absence of polling evidence that the guns and abortion issues were turning the tide. Now, a month later, they — along with the January 6th Committee hearings — still haven’t shown any midterms lifesaving potential for the Democrats. In fact, some survey measures suggest that the Republican position has strengthened somewhat.

As often, my sources are the averages of poll results compiled and updated on an ongoing basis by RealClearPolitics.com. Let’s start with an important indicator of midterm outcomes – presidential popularity.

The Politico.com scoop on the Supreme Court abortion draft leak appeared the evening of May 2, so May 3 seems like the baseline to use for measuring how the aforementioned news shocks have changed midterms prospects.

On May 3, according to the RealClearPolitics average, President Biden was underwater in terms of job approval ratings by 10.5 percentage points. As of today, the share of Americans admiring his performance in the White House stood at 38.4 percent and the share giving him thumbs downs was 56.9 percent. So his net negatives have nearly doubled, to 18.5 percentage points. In addition, that gap is only slightly narrower than the record 19.5 percentage points registered just yesterday.

And worse for the President, and his party: His popularity has deteriorated both because his approval ratings are as of today (38.4 percent) just off their all-time low and the disapproval numbers (56.9 percent) are just shy of their all-time high (both also set yesterday).

Pollsters also offer respondents a “generic Congressional ballot” – asking them whether they’d be likelier to cast ballots for Democratic or Republican candidates for House and Senate whoever the specific candidates on their ballots are. Although it deals with the elections that will actually determine which party winds up with majorities on both ends of Capitol Hill, its readings need to be viewed with caution because Congressional elections aren’t national but state-by-state and district-by-district. In fact, because of the Constitution’s approach to apportioning Senate and House seats, Republicans enjoy a built-in edge here, meaning that at least when it comes to the generic ballot, Democrats need to be winning by several percentage points to justify election day optimism.

According to RealClearPolitics, they’ve made some progress since May 3, but still have a ways to go.

The day after the Supreme Court leak, Republicans led the Dems by this measure by 4.1 percentage points. By May 29, that margin had shrunk all the way down to 1.5 percentage points. But as of today, though, it’s back up to 2.2 percentage points, and has remained stable overall since June 5.

Finally, and perhaps most discouraging for the Democrats given their efforts to portray most Republicans as backers of an extremist, Trump-y “ultra MAGA” agenda, the former President continues to lead Mr. Biden in polls asking about a head-to-head match-up in 2024. The website doesn’t post averages over time – just a single average figure that shows a Trump lead of 1.8 percentage points as of today.

Changes revealed in individual surveys can be interpreted as either favorable or unfavorable to President Biden depending on your baseline starting date. Specifically, in late April (just before the Politico leak), two polls showed him leading his predecessor by one and two percentage points. So since then, the President has lost ground. But a mid-May survey reported a three percentage point Trump lead. So since then, Mr. Biden has gained ground, though he’s still behind.

What does seem fair to say, though, is that no polls report any burgeoning public disenchantment with Trump since recent events that can credibly be argued have placed him, his views on gun control, and the Supreme Court Justices he appointed, in more negative lights. And revealingly, the latest set of Biden-Trump election results, in this Emerson (Massachusetts) College survey, showed Trump with his biggest edge (five percentage points) since late March – even though it was conducted the day of former White House aide Cassidy Hutchinson’s explosive anti-Trump testimony before the January 6^th Committee, and the day after.

All of these trends could easily reverse themselves in the months remaining before November – if only because more politically charged shocks could easily be in store. In addition, voters’ views on the recent shocks could grow more intense and likelier to influence their voting. (Here’s some new evidence for that proposition.)

But what seems most striking to me at this point is how stable the polls have been despite the recent string of arguably pro-Democratic bombshells – and consequently how dim their November prospects remain.

Following Up: Sense and Nonsense in the Abortion Debate

Tags

abortion, abortion rights, birth control, Clarence Thomas, Constitution, contraception, Dobbs v. Jackson Women's Health Organization, Following Up, gay marriage, Ninth Amendmen, Planned Parenthood of Southeastern Pennsylvania v. Casey, privacy, Roe v. Wade, same-sex marriage, Samuel Alito, Supreme Court

Even by the standards of the shameful misinformation- and sheer ignorance-dominated era in which we live, the national abortion debate is noteworthy for the shameful misinformation and sheer ignorance it’s generated, So I thought it would be useful to provide some crucial correctives.

First, the 1973 Supreme Court Roe v. Wade ruling just overturned by six of today’s Justices did not create an absolute Constitutional right to an abortion. That majority opinion specifically stated that

“appellant [Jane Roe, the pseudonym of the pregnant woman who brought the case] and some amici [individuals and organizations that provided supportive “friends of the court” briefs] argue that the woman’s right is absolute and that she is entitled to terminate her pregnancy at whatever time, in whatever way, and for whatever reason she alone chooses. With this we do not agree. Appellant’s arguments that Texas either has no valid interest at all in regulating the abortion decision, or no interest strong enough to support any limitation upon the woman’s sole determination, are unpersuasive. The Court’s decisions recognizing a right of privacy also acknowledge that some state regulation in areas protected by that right is appropriate. As noted above, a State may properly assert important interests in safeguarding health, in maintaining medical standards, and in protecting potential life. At some point in pregnancy, these respective interests become sufficiently compelling to sustain regulation of the factors that govern the abortion decision.”

The Roe majority added its agreement with prior federal and state court decisions that, although the right of privacy “is broad enough to cover the abortion decision; that the right, nonetheless, is not absolute and is subject to some limitations; and that at some point the state interests as to protection of health, medical standards, and prenatal life, become dominant.” .

Second, as a result, “codifying Roe” through Congressional legislation, as sought by many critics of the Court’s Dobbs v. Jackson [Mississippi] Women’s Health Organization ruling overturning Roe, would not create an absolute Constitutional right to an abortion, either. In fact, the specific legislation offered in the House and Senate would clash violently with both the Roe and the follow-on 1992 Planned Parenthood of Southeastern Pennsylvania v. Casey decision by preventing the state or federal governments from imposing any limits on abortions “after fetal viability.” as long as “in the good-faith medical judgment of the treating health care provider, continuation of the pregnancy would pose a risk to the pregnant patient’s life or health.”

Third, whatever was contained in legislation establishing national abortion rights, an act of Congress could well wind up providing only the most short-lived of guarantees. For that law would be likely targeted for abolition as soon as anti-abortion politicians gained sufficient control of both Houses of Congress and/or the Presidency (depending of course on whether a majority achieving this goal was veto-proof). And if the Senate filibuster is ended – another goal of many abortion rights backers – scrapping an abortion rights law would be even easier.

Fourth, I wrote on Friday that a Constitutional right to privacy is essential for any political system like America’s that claims to value individual liberties, whether it’s explicitly mentioned in the U.S. Constitution or not. As with all legitimate rights, it can’t be absolute – because in principle and in real life, too many of these can come into conflict. But without an underlying right to privacy, no limits on government’s authority to control individual behavior would exist save those that are explicitly mentioned in the Constitution.

These are numerous and important (like freedom of expression and religion, the right to keep and bear arms, to be protected against unreasonable searches and seizures). And although it’s often overlooked, the Ninth Amendment holds that “certain rights” not enumerated in the Constitution must be “retained by the people.”

But the text of the Ninth Amendment offers no examples or guidance of any kind. And without an underlying right to privacy, it’s not the slightest bit difficult to understand that despite the assurance offered by the Dobbs majority, many other current individual liberties could be endangered. Nor is the evidence limited to Justice Clarence Thomas’ opinion concurring with the Dobbs ruling, which argued that with the right to privacy out of the way, Supreme Court rulings legalizing contraception, same sex marriages, and same sex relationships should be overturned with the same logic.

Even now, politicians in some states are moving to outlaw certain kinds of birth control devices. And it’s surely pertinent to note that Dobbs opinion author Justice Samuel Alito – who insisted that “It is hard to see where we could be clearer” in stating that the majority opposed equating the legalit of abortion and the legality the other forms of intimate behavior mentioned above – himself opposed the 2015 pro same-sex marriage decision using the exact same kinds of arguments he made in Dobbs. So I certainly think he could have been clearer.

But there’s another important reason to prize a right to privacy.  It has to do with the nature of constitutions themselves. Their whole point (unless they’re the phony kind concocted by dictatorships) is establishing limits on government. Why else bother with such exercises? And what set of limits on government is more crucial than those determining how it can and cannot treat private individuals’ behavior? 

These four aspects of the abortion rights debate certainly don’t exhaust the list of  falsehoods and plain old hare-brained ideas warping a controversy that’s otherwise entirely legitimate and necessary. But the sooner they’re recognized and cashiered, the likelier the nation will be to craft (or re-craft, as I’d put it, given my belief that Roe and Casey got the basics right) an abortion consensus behind which Americans can unify.  

Following Up: Back on National Radio Tonight & Podcast On-Line of Yesterday’s Appearance

Tags

CBS Eye on the World with John Batchelor, China, Federal Reserve, Following Up, inflation, manufacturing, Market Wrap with Moe Ansari, monetary policy, recession, tariffs, Trade

I’m pleased to announce that the podcast is now on-line of my interview late last night on the nationally syndicated “Market Wrap with Moe Ansari.” Click here to and scroll down a bit till you see my name for a timely discussion about the Federal Reserve’s latest inflation-fighting moves, the odds that its tighter monetary policies will trigger a U.S. recession, and where President Biden’s trade policies toward China and the rest of the world may be heading.

In addition, as mentioned yesterday, I’m scheduled to return to the nationally syndicated “CBS Eye on the World with John Batchelor” to update the U.S. China policy story. The exact time for the segment hasn’t yet been set, but the show is broadcast weeknights between 9 PM and 1 AM EST, and is always worth tuning in.

If you can’t listen live on-line at websites like this one, as always, I’ll post a link to the podcast as soon as one’s available.

And keep checking in with RealityChek for news of upcoming media appearances and other developments

Following Up: Podcast Now On-Line of TNT Radio Interview

Tags

abortion, border security, Capitol riot, China, Following Up, Hvorje Moric, Immigration, inflation, January 6 committee, jihadists, Middle East, national security, partisanship, politics, recession, semiconductors, stagflation, Taiwan, terrorism, TNT Radio, tribalism, `

I’m pleased to announce that the podcast is now on-line of my interview last night on “The Hrjove Moric Show” on the internet radio network TNT Radio. Click here for a discussion on headline issues that ranged from the Ukraine war to the U.S. economy’s prospects to China’s future to U.S. immigation and anti-terrorism policies to the January 6^th Committee to growing tribalism in American politics.

And keep checking in with RealityChek for news of upcoming media appearances and other developments

Following Up: Podcast On-Line of Latest National Radio Radio Interview on Tariffs and Inflation

Tags

Biden, CBS Eye on the World with John Batchelor, China, economics, Following Up, Gordon G. Chang, inflation, Janet Yellen, tariffs, Trade

I’m pleased to announce that the podcast is now on-line of my appearance last night on “CBS Eye on the World with John Batchelor.” The segment features John, me, and co-host Gordon G. Chang discussing a bad recent idea that can’t seem to be killed off entirely – the proposal to fight lofty U.S. inflation by cutting tariffs on some goods imports from China. Here’s the link.

And keep checking in with RealityChek for news of upcoming media appearances and other developments.