Saturday Soother – December 24, 2022

The Daily Escape:

Santas on the Grand Canal in Venice 2017 photo via WSJ

(This column is late coming to you since the big storm left the Mansion of Wrong with no internet for two days, due to a large tree falling across our road. The high winds prevented crews from working to remove it for 24 hours. It also may be Wrongo’s last column until Jan. 4th.)

The New Year will continue to bring us the chaos that we’ve sadly become accustomed to. The 118th Congress and its Republican House majority will again test America’s norms. The 2024 presidential election is going to bring an extra silly season of political news, so take a real break if you can.

One thought for year end is to set out a framework for thinking about America’s commitment to Ukraine.

We know that a significant number of Republicans and some Democrats want to pull the plug on our support for Ukraine in its war with Russia. For now, the majority think it should remain a “whatever it takes, for as long as it takes” situation. Implicit in the second viewpoint is that American soldiers are never going to be combatants in Ukraine, and that we’re not talking about another 20-year war like in Afghanistan.

A few things to think about. Do we have a choice to support Ukraine, or is supporting them a necessity? We have talked about the difference between “wars of choice” and “wars of necessity” throughout Wrongo’s adult life. Two of our worst military experiences were in wars of choice: Vietnam and Afghanistan. We didn’t have to intervene in either, but our political leaders decided that America’s national security had a true connection to both conflicts. The clear wars of necessity for America were the US Civil War, and the two World Wars. All threated the existence of the US homeland.

Somewhere in between wars of choice and necessity is Ukraine. It isn’t an ally where we are obligated by a treaty, like we have with Europe via NATO. We are obligated to defend any NATO member who is attacked. For example, that would mean a war against Latvia is a war against the US.

We spent 20+ years fighting in Afghanistan. Given what we learned there, would America ever spend a minute fighting for Latvia? When Trump was president he flirted with saying we wouldn’t immediately commit to defending just any NATO country, and he wasn’t alone in that thinking.

That means we could consider choosing not to defend NATO at all, or not to defend individual NATO countries.

We’re facing Cold War II with China and Russia. Our new Omnibus budget allocates 10% more money to national defense than last year, largely because of the possibility of fighting both countries at great distances from home. The budget implies that our national security is threated by both of them.

Russia’s invasion of Ukraine could become a generation-long rolling war between Russia and the small NATO countries that border either Russia or Belarus, if Ukraine loses. Would America then rally and support NATO? Where would we draw the red line? Support for Germany but not for Poland? Ok, we’ll support Poland, but not Latvia?

We need to think through our priorities. We fought in Afghanistan because we believed fighting a far enemy (al-Qaeda) was better than waiting and fighting them as a near enemy. That is also the basis of why we created and remain a member of NATO: Fighting Russia over there was smarter than fighting it nearby, like in Cuba.

Neither China nor Russia are presently our near enemies. If China invades Taiwan, direct involvement by the US would be another war of choice with a far enemy. Ukraine represents a war of choice with a different far enemy, but one in very close proximity to our treaty partners, an enemy that could cross NATO’s trip wire at any time.

Our history suggests that the American people will agree to wage wars of choice if they are relatively cheap and short in duration. What we call a cheap war is mostly a partisan political question. But talking about the cost of a war of choice is a proxy for how Americans value the country that we’re intent on supporting.

Ukraine is a proxy war of choice. We have very few people on the ground and none in a direct combat role. The twin goals are to preserve Ukrainian independence and to bleed Russia of its conventional military capability. Americans need to consider the following implications for national security:

  • Since our resources are limited, should we choose between containing Russia or containing China?
  • What is the goal of containing either or both?
  • How important are the small NATO counties to our national security?
  • If Ukraine loses its fight with Russia, would our national security be weakened?
  • If yes, can we live with that, or should we be doing more now?

On to a Saturday that’s also Christmas Eve! Forget tree-trimming and the last-minute Amazon shopping for a few minutes. It’s time to unplug and land on a small oasis of soothing in the midst of all of the chaos.

Gaze out at the last few leaves on the trees, and listen to the late Greg Lake, of Emerson, Lake, and Palmer, perform 1985’s “I Believe in Father Christmas”. Although most people think of it as a Christmas song, Lake wrote the song to protest the commercialization of Christmas. Here Lake, along with Jethro Tull’s Ian Anderson on flute perform it live at St. Bride’s Church, in the City of London along with the church’s choir:

The last line of the song says: “The Christmas you deserve is the Christmas you get.”

That might be considered harsh in some circumstances, but it might also be true. Anyway, Merry Christmas, Happy Festivus, Happy Chanukah, Happy Kwanzaa, and Happy New Year to all. Let’s hope the deep divisions in our country can be somehow healed by a seasonal miracle.

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Zelensky’s Visit

The Daily Escape:

Conga line of Santas warming up for their Santa Run, Victoria Park, London, UK – 2018 photo by Yui Mok/PA

When Wrongo heard that Ukraine’s President Zelensky was likely to visit Biden, he was concerned for Zelensky’s safety, since he would be exposed for a significant period of time. It turns out that he flew on a US military plane:

“Flight data shows a US Air Force plane landed at Joint Base Andrews…shortly after noon after taking off from Rzeszow, Poland, which is located near the Ukrainian border. Polish television station TVN24 posted footage of Zelensky in Rzeszow, saying he took a train to Poland before boarding an aircraft.

The Air Force describes the plane, a C-40B, as an ‘office in the sky’ for senior military and government leaders, including capability to conduct secure voice and data communication.”

The Biden administration was so completely behind Zelensky coming to DC that they worked to insure both his safety and his ability to talk to his generals while enroute.

The question of “why now?” is easy to answer. The Omnibus Bill that is yet to pass Congress includes a significant aid package for Ukraine. Zelensky will be home long before the Omnibus Bill is approved by both Houses, which needs to happen before year end.

Wrongo and Ms. Right watched Zelensky’s speech to Congress, and Wrongo can report that he’s never wearing a tie to address Congress again! The contrast between a wartime leader wearing essentially the clothes he wore on the war’s front lines 24 hours before, hammered home the relative difference between our soft Congresscritters and what Ukrainians are facing each day.

There was a notable absence of Republican House members at the joint address. CNN estimated that only 80-some of the GOP House caucus were there. Apparently, all of the GOP Senators were there since Mitch McConnell is a functioning caucus leader, unlike House Minority Leader, Keven McCarthy, (R-CA) who couldn’t wrangle his caucus to attend.

That’s a sure sign of what is to come in January when the GOP controls the House of Representatives.

Despite what House Republicans think, Ukraine’s cause remains popular in the US, with two-thirds of Americans supportive of sending money and arms. The bad part is that this new poll shows Republican support for either sending additional military aid or additional economic aid to Ukraine are now down to 55% and 50%, respectively; worse, 43% of Republicans want the US to withdraw all support for Ukraine.

America desperately needs to have a discussion about Ukraine’s war with Russia, particularly about whether there are limits to our support for Ukraine. Our support so far has been necessary but it hasn’t been sufficient to cause Russians to leave Ukraine, or to compel them to negotiate about leaving.

The issue of the extent of our support will become a big political issue when Congress reconvenes in January, so we should start the discussion now.

A couple of final observations: Zelensky is patriotic, courageous, and charismatic, and a compelling speaker. He delivered his speech in English. It was to Wrongo, an endearing effort to reach out to Americans on an emotional level. And at least for Wrongo, it worked.

In the end, the two most important parts of Zelensky’s speech were first, to remind Americans that sacrifice is necessary to defend democracy. And that unless Russia is pushed back within its borders, few of us, particularly in Europe, are safe. Second, Zelensky pointed to the burgeoning relationship between Russia and Iran, and that Iran’s participation has been unchecked while it wreaks devastation on Ukraine.

We should develop a strategy to interdict the movement of Iran’s drones to Russia. That’s an escalation that makes sense to Wrongo.

By underlining that Ukraine needs still more military and humanitarian aid, Zelensky was calling on reluctant Republicans to do the right thing when it comes to funding what is likely to be a prolonged and open-ended war. We have to hope that they will.

Zelensky’s trip to military front lines in Bakhmut the day before allowed him to deliver a gift to Biden of a Ukrainian soldier’s battlefield medal. Biden’s response was perfect:

“It is undeserved but appreciated.”

People keep forgetting Biden is good at this. Zelensky’s camaraderie with Biden was reassuring. His speech before Congress was motivating. Overall, it was a great day for Zelensky.

Let’s listen to “Silent Night”, here performed in 1980 by the Temptations. This was their second recording of it, this time with Dennis Edwards, Melvin Franklin & Glenn Leonard on vocals. The song begins with Dennis saying, “In my mind, I wish all to be free”, not the traditional way to start “Silent Night”.

Questlove, speaking with Terry Gross, says that when a Black performer starts with “In my mind” as Dennis Edwards does here, you know you’re going deep:

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Releasing Trump’s Taxes

The Daily Escape:

Surfing Santa via Pinterest

After more than 3Âœ years of pursuit, Rep. Richie Neal (D-MA), Chair of the House Ways and Means Committee finally was given access to Donald Trump’s tax returns. Trump had refused to provide them and sued to prevent the IRS from giving them to Congress.

But after a federal district court waited 2 Âœ years before opining and a subsequently, a federal appeals court ruled in favor of the Committee, the Supreme Court declined to block the release of the returns to the panel last month. The Committee debated over whether to release Trump’s returns to the public and decided by a Party-line vote to do so.

The NYT tells us about the big takeaway from the release:

“The Internal Revenue Service failed to audit former President Donald J. Trump during his first two years in office despite a program that makes the auditing of sitting presidents mandatory, a House committee revealed on Tuesday after an extraordinary vote to make public six years of his tax returns.”

It’s called the Mandatory Presidential Audit Program, but the IRS never even got around to looking at Trump’s. It was only after the Committee asked about Trump’s returns in 2019 that the IRS finally opened an investigation of Trump’s 2016 returns, even though it had been tasked by that time with auditing him from 2015 through 2018.

That he wasn’t audited is strange, to put it mildly. Getting his returns has validated the Committee’s stated premise for opening the case. The Committee is now recommending that the Mandatory Audit Program, which has been in place since the Carter administration, be codified into law.

While not auditing the president, the IRS was quite busy auditing the returns of the FBI’s James Comey and Andrew McCabe, two enemies of Trump instead.

The Republican objection to releasing Trump’s returns was based on the idea that even public servants have a right to privacy about their financial matters. Wrongo has some sympathy for that, but the tax returns of all top government officials should be made public by law.

Rep. Kevin Brady (R-TX) warned that releasing Trump’s tax returns could lead to the release of tax returns of Supreme Court Justices:

Are you trying to hurt the Democrats, Kevin? Shouldn’t we routinely audit every senior government employee? Shouldn’t those audits be public? And especially the Supreme Court Justices, for whom ethics seem to be optional.

There’s also the threat that Republicans who will control of the House in January, will release the tax returns of Democrats. Wrongo thinks they should release any elected official’s return. After all, a government employee is paid by your taxes, so you have some right to transparency.

The difference is that Trump refused to release his, while most politicians release theirs after they are nominated for office.

For those Democrats who are now saying that it was a mistake to release them because of the Republicans’ possible retaliation, the last 30 years have been about Republicans going after Democrats with investigations and inventing scandals out of thin air for partisan political reasons. They will continue to do this irrespective of whether Trump’s tax returns were released.

Some media are reporting that Republicans are saying:

“….the Democrats don’t want to go down the road of releasing tax returns because where will it stop? with releasing tax returns of ordinary citizens?”

This is hyperbole. The media should ask Republicans who say this:

“Why are you so concerned about the House releasing the tax returns of ordinary citizens? Your Party will control the House. Are you concerned that your fellow Republicans would release tax returns of ordinary citizens?”

Next thing you know they’ll be asking for official college transcripts! Or, certified birth certificates. Oh, wait, they’ve already done that.

Because the Committee released Trump’s tax returns, we now know is that the IRS did not even begin its mandatory audits of Trump’s taxes until 2019 and hasn’t completed any of them.

Let’s close today with a tune for Hanukkah which this year is at almost the same time as the Christmas holidays. Let’s watch and listen to the Maccabeats perform “Latke Recipe” to the tune “Shut Up And Dance” originally performed by Walk the Moon. It’s fun, and who doesn’t like latkes?:

 

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The Criminal Referrals

The Daily Escape:

Gateway Crossing Bridge, Houlton, ME – December 2022 photo by Christopher Mills Photography

The Jan. 6 Select Committee has completed its job. On Monday it approved a criminal referral for Trump, a former President, and a current Presidential candidate, on a series of charges that include insurrection and conspiring to defraud the US. Marcy Wheeler summarizes the findings of the Committee perfectly:

“Trump corruptly tried to prevent Congress to certify the electoral victory of Trump’s opponent. He did so by committing other crimes. He did so by mobilizing a violent mob. He did so using fraudulent documents. And most importantly, he did so for personal benefit.”

The Committee will publish their final report next week. They will turn over the unredacted interview material to the Department of Justice (DOJ) and its Special Counsel, Jack Smith. According to Punchbowl, the Committee has already begun cooperating with Smith, who apparently sent the Committee a letter on Dec. 5 requesting all of the panel’s materials from the 18-month probe.

Sadly, it seems that their report ignores the policing failures that occurred both before and on Jan. 6.  One of the objectives of the Select Committee was to make recommendations about how the US Capitol could avoid a similar attack in the future. But it doesn’t seem that subject has been properly addressed.

While Wrongo believes that the investigation into Jan. 6 was critical and that it may eventually result in the DOJ indicting Trump at some point, conspiracy is a very high bar to prove against a common thief, much less against a former president who is used to communicating like a mob boss.

As Dan Pfeiffer says:

“…we will all wake up and go about our business. Donald Trump will continue to be the frontrunner for the GOP nomination and a legitimate contender to be the next President of the United States. The vast majority of Republicans will continue to stand with Trump — and most will do so enthusiastically.”

Before issuing any indictment, DOJ  prosecutors must decide if there is a case to be made that includes sufficient evidence to convict the former President beyond a reasonable doubt.

And it could take the DOJ a year or more to get a grand jury to indict Trump. While the DOJ has had grand juries up and running and considering evidence about Jan. 6 for a very long time, building such a complex case may take long enough that by the time they’re ready to bring a case, it will be near the time of the GOP primaries.

The Mar-a-Lago secret documents case is an easier one to make. We know that an FBI search of the former President’s Mar-a-Lago home in Florida found more than 300 classified documents.

Trump’s removal of official government records from an office of the US is one possible charge. A second separately chargeable offense is theft of government records. Those two crimes carry maximum three-year and 10-year sentences respectively.

Then there’s the Espionage Act, which also carries a sentence of 10 years in prison. We know that before January 20, 2021, the Acting Archivist of the US asked for those records to be returned, and Trump’s White House Counsel Pat Cipollone agreed that Trump needed to return them before his term ended.

After Trump left DC with the documents, a grand jury subpoena demanded that all of them be returned to a courthouse located in Washington, DC.

These three crimes are relatively straightforward to prove. Garland and his team might decide that charging them alone suffices, without adding a fourth offense of obstructing a pending federal criminal investigation, into improperly taking and retaining the stolen documents.

Obstruction carries a 20-year maximum sentence — double the penalty for violating the Espionage Act. That shows how seriously that charge is considered under the law.

We know that Trump and his attorneys stonewalled the government for more than a year, refusing to return the 13 boxes of classified documents that the FBI’s August 8, 2022 search recovered. Most of this year has been an effort by Trump to delay the FBI and the DOJ from inventorying all of the classified documents that Trump took to Florida.

The DOJ has a strong case against Trump on the charges described above. They are easier to prove, and existing laws are very clear what the penalties are when it comes to the theft of classified documents. And there’s plenty of legal precedent for putting people who steal US government secrets in jail for a long time. If we want Trump taken off the battlefield before 2024, the theft of classified documents case is the best shot.

Let’s close with “Christmas Must Be Tonight“, a 1975 tune written by Robbie Robertson. It was released on the Band’s 1977 album “Islands”. This version is from that album. The tune appeared in the movie “Scrooged” in 1988. There is Rick Danko’s singing along with Robbie Robertson’s lyrics. It doesn’t get any better than this:

Chorus:

How a little baby boy bring the people so much joy
Son of a carpenter, Mary carried the light
This must be Christmas, must be tonight

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What Should Happen When A Candidate Lies On Their Resumé?

The Daily Escape:

Christmas Tree, Cape Porpoise Harbor, Cape Porpoise, ME – December 2022 photo by Eric Storm Photography

Wrongo doesn’t like to write “Dems in Disarray” articles, but here goes. Monday’s NYT had a long article about a Republican Congressman-elect from Queens and Nassau County in NY. George Santos won and is set to be sworn in on Jan. 2. He ran as the “embodiment of the American dream”, something he wanted to safeguard for the rest of us. Turns out his back story is extremely difficult to confirm.

From the NYT:

“His campaign biography amplified his storybook journey: He is the son of Brazilian immigrants, and the first openly gay Republican to win a House seat as a non-incumbent. By his account, he catapulted himself from a New York City public college to become a “seasoned Wall Street financier and investor” with a family-owned real estate portfolio of 13 properties and an animal rescue charity that saved more than 2,500 dogs and cats.”

Ok, here’s the issue:

“….a New York Times review of public documents and court filings from the US and Brazil, as well as various attempts to verify claims that Mr. Santos, 34, made on the campaign trail, calls into question key parts of the rĂ©sumĂ© that he sold to voters…..Citigroup and Goldman Sachs, the…Wall Street firms on Mr. Santos’s campaign biography, told The Times they had no record of his ever working there. Officials at Baruch College, which Mr. Santos has said he graduated from in 2010, could find no record of anyone matching his name and date of birth graduating that year.

Grab your popcorn. More:

“There was also little evidence that his animal rescue group, Friends of Pets United, was, as Mr. Santos claimed, a tax-exempt organization: The Internal Revenue Service could locate no record of a registered charity with that name.”

Maybe Santos can explain. His financial disclosure forms say he has money.  He lent his campaign more than $700,000 during the midterm election, has donated thousands of dollars to other candidates in the last two years and reported a $750,000 salary and over $1 million in dividends from his company, the Devolder Organization. But several times, he was evicted for failure to pay rent:

“In November 2015, a landlord in the Whitestone neighborhood of Queens filed an eviction suit in housing court accusing Mr. Santos of owing $2,250 in unpaid rent. In May 2017, Mr. Santos faced another eviction case, from a rent-stabilized apartment in Sunnyside, Queens. Mr. Santos’s landlord accused him of owing more than $10,000 in rent stretching over five months and said in court records that one of his tenant’s checks had bounced. A warrant of eviction was issued, and Mr. Santos was fined $12,208 in a civil judgment.”

He sure sounds legit. How does someone who was evicted for non-payment of a total of about $14,500 in rent wind up in a position where he can loan $700k to his campaign? What caused his sudden change of fortune?

But Democrats, why are we only learning about this after the election? Why wasn’t this seriously negative information available before/during the election? Democrats do opposition research, even in a state like NY where they expect to win most seats.

And it gets worse. Santos ran and lost in the same district in 2020. So the Democrat’s state political higher ups had YEARS to do opposition research on Santos, but they didn’t. The Chair of the NY state Democratic Committee is Jay Jacobs, who is also Nassau County Democratic Chairman. Under his leadership, the Democrats lost four Congressional seats in November.

Within days after the election, dozens of Democratic officials from across the state signed a letter calling for Jacobs to be replaced. They accused him of sleepwalking into the midterms. Was Jacobs asleep at the wheel? Jacobs blames low voter turnout, but it’s his responsibility to get Democrats to the polls, to motivate voters to show up. And to check out the backstories of the opposition.

BTW, the NYT reached out to Santos for comment:

“We could not locate the congressman-elect and a person living at his stated address had no knowledge of his existence.”

The federal government has a False Statements Act for material omissions or misrepresentations on personal financial disclosures. It carries a maximum penalty of $250,000 and five years in prison. We’ll see. The House also has internal procedures for investigating ethics violations, but because Republicans who will control the House with Santos’ help, have no bottom for the ethical lapses they’ll accept, NY is now probably stuck with this guy.

Let’s close with another version of the Mariah Carey hit “All I Want for Christmas is You”  this time performed in 2021 by the Welsh of the West End, a group of UK theater performers:

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Monday Wake Up Call – December 19, 2022

The Daily Escape:

Skiing Santas at Sunday River Ski Resort, Newry, ME – Dec. 11, 202, AP Photo/Robert F. Bukat

(As we cruise towards Christmas, each day this week we will feature pictures of Santas and/or Christmas trees, along with loopy songs vaguely representative of the season. You’ve been warned.)

The war in Ukraine has once again reminded policy makers of the importance logistics plays in winning on the battlefield. In reading a Defense One post by Marcus Weisgerber, Wrongo learned that demand for weapons by Ukraine — combined with worker shortages, inflation, and other factors — has made it more difficult and more expensive to produce the most in-demand weapons. This describes the current problem:

“The US has sent 13 years’ worth of Stinger production and five years’ worth of Javelin production to Ukraine…”

That’s in 10 months. And a newsletter by CDR Salamander states the overall problem clearly:

“The Ukrainians would have run out of weapons and ammunition months ago if the former Warsaw Pact nations in NATO didn’t empty what inventory they had left of Soviet Era weaponry and the rest of NATO led by the USA didn’t wander the world trying to soak up as much available inventory money could buy. That and the rapid adoption of NATO compatible equipment by the Ukrainians is helping, but that has revealed other problems – who says the West has enough to give?”

It is said that amateur warriors deal in tactics while professional soldiers deal in logistics. Both sides in this war are burning through their weapons stockpiles at unsustainable rates even though the war seems (at least momentarily) to be a stalemate. The US and NATO had little in stockpiled weapons even before the Russo-Ukrainian War, able to mount only a very limited or short war as they did (poorly) in Libya. This has been true for the past 20 years. Now those limitations are out in the open.

US defense spending could rise 10% percent in 2023. A good chunk of the increase is meant to rush weapons to Ukrainian forces fighting the Russian invasion, along with replenishing the US missiles, artillery and other weapons sent to Ukraine.

But the sad truth is that it isn’t clear that US or European defense companies, along with the thousands of small businesses that supply them, can meet this increased demand. There are plenty of reasons, including worker shortages and supply-chain disruptions that have been exacerbated by the pandemic and the global current economic outlook.

And the Pentagon was slow to award contracts to rebuild weapon stockpiles. Those that were awarded quickly had to be fast-tracked by top-level Biden administration officials. And it gets worse. Many defense firms are short-staffed relative to what’s needed to fulfill anticipated Pentagon orders to replace weapons sent to Ukraine. Defense One quotes Raytheon Technologies CEO Greg Hayes:

“The real question is, can we actually build it?….They can appropriate all the money, but…if we take months and months and months to get on contract, that’s months and months of delay.”

Raytheon builds the Stingers that are so depleted.  They are willing to ramp up, but it takes investment and lead time to grow production. More from Hayes:

“We want to be prepared to meet the demand that’s out there….I wish I could snap my fingers and then all of a sudden miraculously, throw a building up and train 500 people [to build them], but it just takes time.”

American business calls this “Lean Manufacturing“.

A final illustration of how a simple part that gets caught in the supply chain becomes a big problem: The Eurasian Times reports that German ammunition manufacturers have warned about delays in receiving cotton linters. They are a necessary component for propelling charges from small guns and artillery. All European ammunition producers depend on China for cotton linters, even though it is a commodity produced and traded globally. The time to get them to Europe has tripled to nine months.

Much like we learned during the height of the pandemic, our supply chain is only as strong as its weakest link. Lean Manufacturing and “Just-in-Time” supply chains drove the prices of imported goods through the roof, but increased demand meant that we still had to wait months to get what we ordered. Have we learned anything?

Like during the pandemic, the Russo-Ukrainian War is sending a clear warning to everyone throughout the West: We need to ramp up production, capacity, and have a more reliable – if somewhat less efficient, supply chain to support our military. This is a hard lesson, because unlike jets, missiles and ships, ammunition and expendables are hidden away in bunkers. And if your governments and diplomats do their job, they will never be used.

However, if/when you need them, like right now, the need is existential. Time to wake up America! We can’t depend on capitalism only to solve our supply chain problems. To help you wake up, take a moment to watch the Foo Fighters, who closed 2017’s Christmas episode of Saturday Night Live with an extended performance of “Everlong” that morphs into a pair of seasonal classics:

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Saturday Soother – December 17, 2022

The Daily Escape:

18th Annual Las Vegas Santa Run – Saturday, Dec. 3, 2022.  Source: L.E. Baskow/Las Vegas Review-Journal @Left_Eye_Image

Lost in the back and forth of the year-end Congressional sausage-making was the unwelcome news that the deal to protect dreamers and to reform our immigrant asylum system has died.

From Greg Sargent in the WaPo:

“For a fleeting moment this month, a deal to protect 2 million “dreamers”…appeared within reach. Two senators with a history of bipartisan compromises were earnestly haggling over details…. The talks were endorsed by influential right-leaning opinion-makers, and even encouraged by the conservative Border Patrol union.”

The two Senators are Sens. Thom Tillis (R-NC) and Kyrsten Sinema (I-AZ). Back to the WaPo:

“What happened? Tillis and Sinema were negotiating over bill text, much of which had been written, as late as Wednesday night. But Senate Minority Leader Mitch McConnell (R-KY) informed Sinema and Tillis that he wouldn’t allow it to be attached to the end-of-year spending omnibus bill, effectively killing it…”

Passing it was always a long shot. It looks as if the Republicans want immigration as a political issue more than they want a solution.

If you follow what’s going on at the southern border, you know that using Title 42, to allow police and border officers to expedite the expulsion of illegal immigrants is ending. A federal judge ordered the Biden administration to stop using it by Dec. 21, stating that it was “arbitrary and capricious.”

Immigrants are now crossing the border in large numbers, expecting that it will soon be impossible for US Border Patrol to simply send them back without reliance on Title 42. More from Sargent:

“The framework would have created new processing centers that would detain incoming asylum seekers — with increased legal and health services — until screenings could determine whether they have a “credible fear” of persecution if they were returned home. Those who passed would get a final hearing much faster than under the status quo, due to major investments in legal processing. Those who failed would be expelled promptly.”

The proposed Tillis/Sinema bill was designed to disincentivize exactly what the Republicans keep yelling about: Migrants who arrive seeking asylum, who then disappear into the interior and fail to show up for hearings. More from Sargent:

“What’s deeply frustrating about this moment is that the fundamental principles underlying reform were real and workable. Many Republicans recognize the absurdity of banishing the dreamers….And on asylum, these reforms represented a good-faith effort to come up with a solution that both sides could accept.”

The bill would have discouraged the exact sort of abuses that the Republicans constantly call the “border crisis” while retaining  the US commitment to provide a fair hearing to all who seek refuge here.

Now, the border infrastructure that intercepts and processes migrants will be strained past the breaking point once Title 42 is lifted. But solving the problem doesn’t provide a political payoff to Republicans, who want to keep the “border crisis” hot as a 2024 campaign issue.

The Sinema/Tillis plan was a worthwhile effort. But there weren’t even 10 Republicans willing to break the filibuster. This is why, according to Gallup, more Americans say government is our biggest problem. And they’re saying so for the seventh time in the past 10 years. “Government” is a broad category of dissatisfaction that includes the President, Congress, Party politics and of course, gridlock.

There will be no end to gridlock unless and until bi-partisan efforts are rewarded. So, not in Wrongo’s lifetime.

But now’s the time to let go of the hot steaming mess that is our politics. Grab a few moments of calm and distance before we turn to a weekend of sourcing more Christmas presents and wearing our ugliest seasonal sweaters to family parties. It’s time for our Saturday Soother.

Here on the Fields of Wrong, we still have patchy snow on the ground, although the much-hyped winter storm that made it to the Northeast after wreaking havoc elsewhere seemingly has missed us entirely.

Let’s kick back and brew up a hot steaming mug of Ethiopia Uchoro Nansebo Washed ($27/12oz.) coffee from Floyd, VA’s (pop. 432), Red Rooster Coffee. The roaster says it is surprisingly savory and creamy with notes of apple cider, lemon-lime, and stewed peaches.

Now grab a comfy chair by a window and listen to Michael BublĂ© perform “Christmas (Baby Please Come Home)” with Hannah Waddingham (Rebecca Welton on Ted Lasso). Her singing is a revelation. It’s hard to believe she could make BublĂ© look and sound like a guy in the chorus. It’s from his 10th Anniversary “Christmas in the City” show:

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Will New House Prices Go Down?

The Daily Escape:

Mt. Hood viewed from Timberline Lodge – December 2022 photo by Mitch Schreiber Photography

We have all watched house prices go through the roof since the start of the pandemic. Of Wrongo and Ms. Right’s six kids, two do not currently own a home, and despite having good jobs, and wanting to buy, they’re priced out of their local markets. Houses near Wrongo’s daughter on Cape Cod, MA have nearly doubled in price since the start of the pandemic. The same is true for Wrongo’s son in Bergen County, NJ.

But house sales in US have been slowing down in the past few months as interest rates climb. Wolf Richter at Wolf Street says there are now too many new houses for sale:

“Inventory of new houses for sale…has ballooned to 470,000 houses, up by 21% from the already high levels a year ago, and the highest since March 2008….Which destroys the theory that home prices are high because the industry isn’t building enough houses…”

Wow, nearly a half-million unsold new houses! Much of this inventory of unsold new houses were built in locations that are far from the big suburbs and the cities. After the pandemic started, US businesses redefined the office to include working from home. That further moved to “live anywhere” remote work for some firms.

Now, firms are bringing people back to their physical offices. That makes selling houses at great distances from the office a tough proposition for new home builders. It means buying a lower price rural home based on a big remote salary is no longer in the cards for many workers.

According to Bloomberg, Lennar a major home builder, has been approaching the big corporate rental landlords with an inventory listing about 5,000 houses that it wants to offload:

“Lennar is circulating lists of properties to potential acquirers, according to people familiar with the matter….Many of the properties are located in the Southwest and Southeast…with the builder giving landlords the chance to acquire entire subdivisions in some cases.”

It’s an industry-wide problem. Home builders have pitched at least 40,000 new houses to rental operators in recent months. Bloomberg says that many of these houses had originally been sold to individual buyers who later canceled their purchase contract.

According to a survey by John Burns Real Estate Consulting, the purchase contract cancellation rate spiked to 26% in October, up from a rate of 8% a year ago, and up from 11% in October 2019. The cancellation rates were highest in the Southwest at 45%, up from 9% a year ago. In Texas, the cancellation rate spiked to 39%, up from 12% a year ago. That’s understandable since mortgage rates have been rising so quickly.

This tells us that a part of the “housing shortage” is both local and price-driven. We know that house prices are driven by building costs, which have spiked in the past two years. Prices are also driven by the quality of the schools in the area, or whether the location is near a tourist destination. Retirees can move anywhere, but they generally want to be close to doctors and medical centers and will pay a premium for location rather than pay a lower price to live in the middle of nowhere.

Entire subdivisions sold as a rental community is better from the viewpoint of an individual home buyer instead of a percentage of that development’s homes being sold into a rental pool. No one should buy into a development that is partially sold and partially rented. The big landlords will rarely improve them beyond the least amount possible. So the overall value of all the homes in that community will be diminished by the presence of a rental pool.

We saw that in California in the 2007-2009 real estate bubble, where a few houses in otherwise nice neighborhoods would have overgrown lawns and trash lying in the yard, a clear sign of vacancy. That didn’t help the property values of the individual homeowner neighbors.

How far will housing prices fall? Nobody knows. Here is a chart showing average housing prices since 2019:

Comparing 2019 to 2022, average house prices have risen by 39%. Your area’s average may be even higher, particularly if you live in or near a large city.

It’s clear that the US housing market needs a price correction. Wrongo would like to say that people shouldn’t be offering anything higher on the house they want than it would have sold for in 2019. But, we may not get back to that price level anytime soon.

A price correction alone won’t solve America’s housing crisis, but a 20% correction sure would be a nice start.

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Monday Wake Up Call – December 12, 2022

The Daily Escape:

Oak Creek in snow, Sedona, AZ – November 2022 photo by Ray Redstone Photography

What is it with our national politicians? There are only a few days left for the House and Senate to increase the country’s debt limit, but both Parties have been screwing around, and now it looks like they may punt the problem to the incoming Congress.

From the NYT:

“Congressional leaders have all but abandoned the idea of acting to raise the debt ceiling this month before Democrats lose control of the House, punting the issue to a new Congress when Republicans have vowed to fight the move, and setting up a clash next year that could bring the American economy to the brink of crisis.”

The plan had been for Democrats to act during the lame-duck post-election session to increase the legal borrowing limit. That would take advantage of the Dems’ final month of control of both Houses of Congress. It would head off a pissing contest with Republicans when they take over the House in January. Republicans have threatened to block the increase once they are in charge of the House. They plan to hold it hostage until the Democrats agree to substantial cuts to domestic spending and Social Security, Medicare, and Medicaid.

There are several problems here. The debt ceiling which the US will reach sometime next year; the expiration of the last stopgap funding bill that expires on Dec. 16; and passing an overall budget for the current fiscal year.

The Dems had planned to attach a series of other priorities to the big funding package, including the reform of the Electoral Count Act (ECA), a critical reform that helps prevent election denier shenanigans in 2024. On December 3, Wrongo warned that this was a high risk gambit: (emphasis by Wrongo)

“…the Democrats need Mitch McConnell and other GOP Senate leaders to agree to attach ECA reform to a spending bill and enlist the 10 GOP Senators to support it. That means the GOP controls whether this bill is enacted.”

Now we’re hearing that the leadership of both Parties can’t get to an agreement on the big package. More from the NYT:

“Republicans and Democrats remain at odds over how to split funding between military and social programs. Talks are set to continue through the weekend ahead of the Dec. 16 deadline, though aides said lawmakers could pass a one-week stopgap bill to give negotiations additional time.”

So America’s Christmas present from Congress will be no Electoral Count Act reform and no new budget, and no debt ceiling increase. Instead, we’ll get another Continuing Resolution that will fund the government until early in 2023 when the Republicans will try once again to toss the US credit rating off a high cliff with their far Right ideological theories on US government debt.

Under the last debt limit increase passed late in 2021, the federal government can borrow $31.381 trillion. Total national debt has been slightly above that level, but since a small portion of the debt is exempt from the debt ceiling, we’ve stayed in compliance. As of last week, total debt subject to the debt limit got as close as $31.345 trillion.

The consequences of failing to extend the debt limit are immediate and bring great risk. For example, it could force the government to choose between paying Social Security checks or paying the interest due on the country’s debt. That happened in 2011, when Congressional Republicans pressured President Obama to accept similar spending cuts in exchange for raising the debt limit.

That standoff led to downgrading the credit rating of the US. It rattled American investors and the US economy. This time, it could have global economic implications, given that the world is facing a global recession.

Before you say: Well, these birds learned this lesson back then, so they surely will make a deal this time. Consider that Goldman Sachs reports that less than a quarter of Republicans and less than a third of Democrats who will serve in the House in 2023 served there in 2011.

Time to wake up, Congress! Sure, some of you are very old, and want to go home for the holidays. But we pay you to fix things, not to make them worse. Schumer and Pelosi should make them all stay in DC until they vote on what the country needs.

To help them wake up, watch, and listen to a live version of the Allman Brothers’ “Midnight Rider” with Vince Gill, Gregg Allman and Zac Brown from a 2014 performance at the Fox Theater in Atlanta. One of the wonders of live music is what happens when artists collaborate in a live setting:

We’re also seeing Chuck Leavell on keyboards and Kenny Aronoff on drums.

Sample Lyric:

And I don’t own the clothes I’m wearing
And the road goes on forever
And I’ve got one more silver dollar
But I’m not gonna let ’em catch me, no
Not gonna let ’em catch the midnight rider

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Sunday Cartoon Blogging – December 11, 2022

Wrongo subscribes to John Dick’s, CEO of Civic Science, weekly newsletter. Last week Civic Science was first up with an opinion poll on the Brittney Griner prisoner swap. Turns out America wasn’t happy with it:

“Fifty-two percent of Americans disagreed with the decision, compared to just 37% who agreed (11% had no opinion, somehow)…..Political affiliation was highly correlated, with strong Rs opposing the move at 82% and strong Dems supporting it at 72%. Folks in the middle were anything but balanced, however, where 53% of moderates rejected the swap, while just 33% celebrated it.”

They sampled 1,876 American adults:

It’s a conundrum to Wrongo why 52% of Americans think it’s a bad decision. Would people rather we walked away from any deal just to keep Viktor Bout in jail and leave Brittney Griner in a Russian penal colony? Not wanting to let Bout go before his sentence was completed is understandable. What’s not understandable is whatever happened to American compassion and empathy? On to cartoons, although there isn’t much to laugh at here.

Why so hypocritical?

Trump delivered for Dems:

Mitch and Chuck agree:

Hershel Walker and another guy who needs a walker:

Kyrsten enters the game:

Trump’s business is a tax fraud, but he’s still taxing:

 

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