Tweets Worth Noting Including “Hoot of the Day” Candidates But No Time to Write Them Up

bowwow

4 years ago

Elizabeth Warren should follow-up on her lack of competition angle.

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JRM

4 years ago

So we are under MARTIAL LAW according to Pocohantas???

Her bill mentions in an “EMERGENCY”!!!!

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Six000mileyear

4 years ago

I’d like to submit Acting Comptroller of the Currency Michael Hsu: “The recent collapse of the TerraUSD stablecoin and associated sell-off
in crypto markets has shown that hype-driven growth can lead to bubbles,
harm consumers, and crowd out productive innovation,”

Mr. HSU is from the banking industry, which encourages people to rent money that was created out of nothing.

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RonJ

4 years ago

“Biden praises high gas prices as part of ‘incredible transition’”.

In other words, high gas prices are a feature, not a bug. We are deliberately meant to suffer.

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Dean_70

4 years ago

Reply to RonJ

This is typical of a government employee: Create the disaster then dedicate massive amounts of resources to clean up the mess. Following the situation declare victory over a mess that should have been avoided to begin with. Then campaign on how great of job that was performed and suckers will vote you back in office.

Multiply that scenario from local government all the way to the presidency, regardless of political affiliation.

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Jojo

4 years ago

Filled up my gas tank Monday.

18.316 gals cost me $113.54!

And this is at Costco, which is currently at least 60 cents to more than a $1 cheaper per gallon than most other local gas stations!!

https://drive.google.com/file/d/19YapG9DXk210yxnRFSaZJJ1jVuu7ngPq/view?usp=sharing

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TexasTim65

4 years ago

Reply to Jojo

Coming soon to the rest of the States 🙁

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Dr_Novaxx

4 years ago

The 17th Amendment to the US Constitution has turned the Senate into a freak show.

It’s past time to repeal that, but then again, there is some entertainment value here.

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dwkeller

4 years ago

Along for the ride. On the porch, beer in hand.

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Sunriver

4 years ago

Are we to have another 1929 – 1954 event in the markets? OR will the FED, in all their Genius, lower the FED funds rates to say -5% and increase their balance sheet to say $25 trillion to save our inflationary days!!!!

The charts at the top of this post are ominous. With the FED out of darts, the 1929 event may be the most probable path. This isn’t going to be one of those six month things unless the FED starts up their helicopters.

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Zardoz

4 years ago

Reply to Sunriver

War will provide convenient cover for the economic carnage and deprivation. When it’s over, only the rich will own anything.

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Maximus_Minimus

4 years ago

Reply to Sunriver

With Bernanke still in the loop and Greenspan still alive, anything is possible. Weapons of mass destruction.

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Billy

4 years ago

I agree with Elizabeth Warren, we need price controls.

So lets start with maxing out what lawyers can charge at 5 times minimum wage. Then we can go after big pharma because of price gouging.

Maybe then we can start controlling the money going into politics.

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davidyjack

4 years ago

Sanctions are hurting Russia. The Russian account surplus is much higher not only because of high energy prices but also because imports are way down. Some of these imports are critical parts used in Russian manufacturing. Sanctions are hurting, but not as much as many Western leaders had hoped. Lets see how Russia is faring economically by August.

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Matt3

4 years ago

Reply to davidyjack

I’m not sure how much sanctions are hurting Russia. I guess we will see.

The sanctions are certainly hurting the US economy and Europe through energy inflation. The sanctions are hurting the entire world through fertilizer costs which will lower crop production. Sanctions are also going to cause food scarcity. The sanctions may cause famine and starvation as well as social unrest in the underdeveloped economies.

Are these unintended consequences or are they welcomed changes?

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Lisa_Hooker

4 years ago

Reply to Matt3

The sanctions folks can’t think that far ahead.

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Eighthman

4 years ago

Reply to davidyjack

Their PM already has a parallel import needs list in action. Since a huge amount of manufacturing moved to Asia, there may not be much the US can hold hostage. They got the Renault plant nearly for free and might be able to build cars without computer chips there.

August? I completely agree. Let’s see how Russia is doing then.

OTOH, this sanctions craze might bring down the Euro project entirely.

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Roadrunner12

4 years ago

Reply to Eighthman

“OTOH, this sanctions craze might bring down the Euro project entirely.”

Europe really shooting them self in the foot and for good measure want to shoot themself in the head. The new Russia/Chinese natural gas pipeline will be ready in 2-3 years with a 30 supply agreement. Nordstream II is at their doorstep & could supply them with a constant supply of natural gas for the next 30 years. On top of it, the natural gas through Nordstream II would not be subject to transit fees which one would think would help Germany get a cheaper supply of natural gas. The transit agreement through Ukraine expires in 2 years and for now, the Russians are honoring that agreement. Current transit fees from Russia paid to Ukraine are in the 1-2 billion/yr range. Russia in 2 yrs will be in an exceptionally strong position to shut off the European gas supply.

The European position going forward will to be continually be in a constant quest for energy supplies unless their leadership starts looking to the interest of their people and signs some long term agreement with the Russians. For now Europe moving forward into an economic deadzone.

The US’s own natural gas looks to be getting into a quagmire itself. Natural gas supply has remained constant and actually even declined recently. Climate change policies have affected natural gas just like oil in regard to production and pipelines. While production has remained constant and even decline, it appears that it is more profitable to supply other countries with LNG than the native population.

8ish years of climate change policies look to be coming home to roost in the US this summer. Going forward I expect the story in the US to be one of continuing blackouts and energy shortages much like Europe experienced.

Google following:

EIA-914 monthly production report

U.S. Natural Gas Prices Rise As LNG Exports Reach 7-Week High | OilPrice.com

U.S. Natural Gas Prices Are Set For A Sustained Rally | OilPrice.com

Grid monitor warns of U.S. blackouts in ‘sobering report’ – E&E News (eenews.net)

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Lisa_Hooker

4 years ago

Reply to Roadrunner12

Next winter in America’s Midwest will be interesting if natural gas is still $9, or more.

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Roadrunner12

4 years ago

Reply to Lisa_Hooker

Natural gas was generally a land locked commodity meaning it was basically transported over a land mass by pipeline. Over the last 8ish years or so, more and more has been transported as LNG. Close to 20% according to Javier Blas. And over that time, climate change policies have limited exploration, development and pipelines and in fact, US natural gas production has actually declined recently. Natural gas is also at a peak and will decline going forward.

Some natural gas is being sold internationally at $38ish and domestically at 9ish. I am not sure as to the profit margins with either, is natural gas sold internationally more profitable to companies despite the LNG process and shipping?

I expect that we will be hearing more and more about the US restricting energy exports in the future.

The one thing that immediately struck me was when Biden, Trudeau were suddenly pledging to make up the European gas supply while shutting down their own industries. I read somewhere that it would cost the EU $240 billion to completely adopt to US, Canadian natural gas. Doesnt something seem off there? The US itself looks to be running into a shortage of natural gas shortly.

A European, Russian natural gas deal would surely have an impact on natural gas prices.

Google following regarding pipeline, production issues and natural gas shipments.

Natural gas production slowing in Appalachia as infrastructure fails to meet demand | Fortune

Amid Ukraine War, U.S. Gas Exports Deepen Inflation Woes at Home – Bloomberg

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Roadrunner12

4 years ago

Reply to Roadrunner12

Like I said, I believe the calls for restrictions on US energy exports to increase in the future.

The UK instituting a windfall tax on oil & gas companies.

U.K. slaps 25% windfall tax on oil and gas profits – BNN Bloomberg

“Boris Johnson’s government will impose a windfall tax on the profits of oil and gas companies, bowing to mounting pressure to support Britons facing a record squeeze on living standards.

The 25 per cent levy on energy firms will raise about £5 billion (US$6.3 billion) to finance one-off grants of £650 to more than 8 million of the poorest households in the UK, Chancellor of the Exchequer Rishi Sunak said in the House of Commons on Thursday. Sunak did not rule out applying a similar levy to power generators, but said more work needs to be done on the idea.”

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Zardoz

4 years ago

Reply to davidyjack

They already have to sell what oil they have for cheap… the strong ruble adds to the problem. Whoever will still sell to them will also demand a premium.

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KidHorn

4 years ago

Reply to davidyjack

Do you have a link to their import data?

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Jojo

4 years ago

Reply to davidyjack

Let’s see what happens with this.

———

U.S. will start blocking Russia’s bond payments to American investors.

May 24, 2022, 3:35 p.m. ET

WASHINGTON — The Biden administration will start blocking Russia from paying American bondholders, increasing the likelihood of the first default of Russia’s foreign debt in more than a century.

An exemption to American sanctions has allowed Russia to keep paying its debts since February. But that carve out will expire on Wednesday, and the United States will not extend it, according to a notice published by the Treasury Department on Tuesday. As a result, Russia will no longer be able to pay interest it owes on billions of dollars in debt held by American investors. As a result, Russia will be unable to make billions of dollars of debt and interest payments on bonds held by foreign investors.

Biden administration officials had debated whether to extend what’s known as a general license, which has allowed Russia to pay interest on the debt they sold, but officials ultimately determined that a Russian default would not have a significant impact on the global economy and allowed it to lapse.

Treasury Secretary Janet L. Yellen said at a news conference last week that the exemption was created to allow for an “orderly transition” so that investors could sell securities. It was always intended to be for a limited time, she said. She noted that Russia’s ability to borrow has already essentially been cut off.

…

https://www.nytimes.com/2022/05/24/us/politics/russian-debt-treasury.html

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Siliconguy

4 years ago

Reply to Jojo

“The Biden administration will start blocking Russia from paying American bondholders,”

So Biden has told Russia they no longer need to pay debt owed to Americans and this will hurt Russia? I’m missing something again.

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JRM

4 years ago

Reply to Siliconguy

No you are not, this is intended to hurt the USA, since BIDEN has declared war on the “USA”

Disarming the US military!!

ECT,ECT,ECT!!!!

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Maximus_Minimus

4 years ago

Reply to Siliconguy

Probably a mess-up between AI, and teleprompter that concoct Biden’s speeches.

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Jojo

4 years ago

Reply to Siliconguy

With a default on their record, future borrowing costs, should anyone agree to len d to them , will be higher than otherwise.

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JRM

4 years ago

Reply to Jojo

I see you love drinking the “COOL-AID” the MSM/INTEL are serving you!!!!

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JRM

4 years ago

Reply to davidyjack

Another person that is drinking the “COOL-AID” that the MSM/INTEL are serving them!!!!

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Tony Bennett

4 years ago

“This unwind is going to take more than one wave. Moreover, there will be bottom calls all the way, even from bears.”

…

Absolutely.

Fully expect a few weeks to several months rally(s) to suck everyone back into the pool before process over.

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Tony Bennett

4 years ago

“Corporations have price gouged consumers for extra profits—and gotten away with it—for too long,” said Sen. Elizabeth Warren.

…

She needs to scream louder … the Warren amp stuck on 11 following her call for Department of Justice to “investigate” poultry farmers for high turkey prices prior to Thanksgiving.

Uh, anyone have information on how THAT investigation going? …

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Crenvy

4 years ago

Reply to Tony Bennett

Warren is a shining example of a “showboat politician”. Name a single accomplishment of hers since ascending to the Senate.

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PreCambrian

4 years ago

It appears to me that almost everyone is more concerned about making money and insuring their own survival than doing what is right. Each corruption is built upon another corruption and I am waiting to see what it takes to bring this whole house of cards down.

Warren is right that there isn’t enough competition. The solution however is to have more competition, not to have the government try to enforce prices. The private side is much more nimble than the government and the government would just wind up chasing its own tail.

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KidHorn

4 years ago

Reply to PreCambrian

You don’t think there’s enough competition in the oil and gas industry? That’s why prices are so high.

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TexasTim65

4 years ago

Reply to PreCambrian

“It
appears to me that almost everyone is more concerned about making money
and insuring their own survival than doing what is right. Each
corruption is built upon another corruption and I am waiting to see what
it takes to bring this whole house of cards down.”

Your 1st sentence perfectly encapsulates what Capitalism is all about (each person doing what’s best for themselves). The problem with the last part of your sentence ‘doing what is right’ is that what is ‘right’ always depends on the point of view. When 2 people enter a transaction (whether its a sale of goods or negotiating wages or whatever) both people think they are doing what is right for themselves or else they wouldn’t be doing it. Sometimes both benefit equally, sometimes one benefits more than the other. Even social ‘rightness’ always depends on point of view as someone has to foot the bill for it so those who benefit think it’s right and those who pay don’t.

“Warren
is right that there isn’t enough competition. The solution however is
to have more competition, not to have the government try to enforce
prices. The private side is much more nimble than the government and the
government would just wind up chasing its own tail.”

No one yet has explained how will we get more competition? Entering the business space of large corporations (say oil and gas, cars, steel, poultry etc) takes billions if not 10s or hundreds of billions of dollars. Those businesses are essentially closed to new competition due to the start up costs. Splitting companies doesn’t work because they either re-merge (the baby bells after AT&T) or some weaker ones fail and you are back to only a few successful companies.

When I was a kid in the 70s, every town still made things locally. I remember coke/pepsi bottled locally. Same with milk. A local cannery canned local produce. My dad owned a printing company that did local printing etc. Over time as transportation costs came down and the internet made anyone able to reach anywhere for business with a click of a button all the local businesses were swallowed up or went out of business because they could not compete with larger companies. There is no way to get around that happening over and over again.

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Jojo

4 years ago

Reply to PreCambrian

Competition has nothing to do with it. Many companies have huge storage facilities where they have oil or gas that was brought/refined when prices were much lower. By all rights, they should have to run through what they have in storage at the old prices before they can increase current prices.

But that isn’t how it works, which explains the huge profits that oil companies make when the commodity price of oil increases.

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Matt3

4 years ago

Reply to Jojo

Just because the oil company paid less for the oil and the price went up doesn’t mean they should hold the price low. They have risk when holding inventory. This is the same for any business that has a commodity as a large portion of costs.

If you buy and hold a stock and it goes up a bunch, should I be able to purchase the stock from you at price that is comparative to what you paid and what is a “reasonable return” or should I have to pay the current market price?

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Crenvy

4 years ago

Reply to Jojo

And their kisses when the bet goes the other way. Any sensible business takes into account replacement costs, not just what they paid for inventory.

Politicians are typically terrible at business, but they do have other ways to enrich themselves.

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Crenvy

4 years ago

Reply to Crenvy

Interesting … How losses became kisses … ;D

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KidHorn

4 years ago

The good news is Hillary is done once and for all. Good riddance.

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Crenvy

4 years ago

Reply to KidHorn

I wouldn’t bet more than what’s in my pocket right now on that. And I wouldn’t bet a nickel that she suffers even a slap on the wrist.

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Tweets Worth Noting Including “Hoot of the Day” Candidates But No Time to Write Them Up

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