Category: Playlist

Eric Boehlert, RIP

The Daily Escape:

Woodenshoe Tulip Festival, near Salem, OR, with Mt. Hood in background – April 2022 photo by Mitch Schreiber Photography

Eric Boehlert, a senior fellow at Media Matters for America, who wrote commentary and media criticism in his “PRESS RUN” newsletter, was killed on Monday while riding his bike in Morristown, NJ.

Boehlert skewered today’s journalism and its practitioners. He hated journalistic laziness and took great pains to call out the mainstream media’s daily obsession with Both Siderism. We have often quoted him at the Wrongologist. He did a great job of researching his material and his arguments were ferocious.

Whenever Wrongo saw something with Boehlert’s byline, it was sure to be interesting, important, and reliable. He usually posted on Mondays, Wednesdays, and Fridays. Wrongo was surprised when he didn’t post this past Wednesday. But as someone who doesn’t always post on a reliable schedule, I thought that something just came up.

This is a particularly terrible time to lose such an important voice, but it’s always a terrible time to lose a good person. James Fallows paid tribute to Boehlert in his “Breaking the News” newsletter, Framing: In Honor of Eric Boehlert:

“We have lost a crucially incisive voice, and a kind and generous person….Here is an attempt to continue in his spirit.”

Fallows continued about the unspoken assumptions that the media bring to its political coverage:

“This means, for example: the press’s assumption that the most interesting aspect of any development is the politics of it—“What does this mean for the midterms?” “Are the Democrats in disarray?” “Who can out-Trump Trump?”

Or that you should get to the truth of an issue by quoting both a Republican and then a Democrat, or better yet having them argue on screen.

Wrongo didn’t know Boehlert but read his newsletters each week. That somehow, makes the news of his death more painful. It’s interesting how when someone that you have never met dies, it can still feel like a huge loss. In some ways, the loss is very much like losing someone you knew in real life.

And yet, Dick Cheney and Mitch McConnell still walk the earth. Why not Cruz? Hawley? Clarence Thomas? Or any of the other assholes who pollute and poison our politics?

America has far too few voices speaking truth about the corrosive behavior of the US political media. Now, it’s lost one of our most important critics of that industry. Hopefully, others who do this important work will redouble their efforts in homage to Eric’s efforts. Wrongo will try harder.

As Boehlert would say in his sign-offs, “Stay healthy. Be kind.” He was a good man that fought the good fight.

Boehlert concluded each of his columns with music. Let’s try to honor him by watching and listening to the Celtic Woman perform “The Parting Glass” live in 2018 in Ireland’s Johnstown Castle. The parting glass was the final hospitality offered to a departing guest in Scotland and Ireland. It has become a tune used to celebrate the lives of the dearly departed:

Lyrics:

Oh all the money that e’er I spent
I spent it in good company
And all the harm that e’er I’ve done
Alas, it was to none but me

And all I’ve done for want of wit
To memory now I can’t recall
So fill to me the parting glass
Good night and joy be with you all

Oh all the comrades that e’er I’ve had
Are sorry for my going away
And all the sweethearts that e’er I’ve had
Would wish me one more day to stay

But since it falls unto my lot
That I should rise, and you should not,
I’ll gently rise and I’ll softly call
Good night and joy be with you all
Good night and joy be with you all

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MLK’s Assassination

The Daily Escape:

Vermontville, NY with Whiteface Mountain in the background – April 2022 photo by William Adamczak Photography

Just a short note today to say that we shouldn’t forget that Dr. Martin Luther King Jr. was murdered in Memphis 54 years ago yesterday. On April 4, 1968, Dr. King was fatally shot on the balcony of the Lorraine Motel in Memphis, a site that’s now a museum dedicated to the civil rights champion’s life.

We should also remember that at the time, he was pursuing economic justice, building the Poor People’s Campaign and supporting the striking sanitation workers of Memphis, TN.

When you look at 1968 versus 2022, in a lot of ways we’ve become more like the country we were back in the 1960s. We’ve seen the near-gutting of the Voting Rights Act by the Supreme Court. We also see efforts to end any teaching in schools of the truth about race in America, and about King’s legacy.

We’re being told by Republicans that a highly qualified Black woman isn’t Supreme Court material.

We spend more time celebrating Dr. King’s birth than acknowledging where he was politically when he was killed. Beyond economic justice, perhaps more than any other social-movement leader in American history, King proved capable of looking at different strands of political and social injustice, then tying them together to form a coherent narrative capable of leveraging dissent into concrete policy change.

That’s what we should remember: There’s less than three months between the observance of King’s birthday and his martyrdom. The way each is recognized by politicians reveals the contradictions in his legacy. Politicians of all ideological stripes extol the virtues of racial equality, while most ignore his criticisms of war and poverty.

King’s last book, “Where Do We Go From Here: Chaos or Community?” posed a question that resonates more today than it did at the time of its release in 1967: Where do we go from here?

Here’s an idea: Develop a narrative that unites people to win back the country from the MAGAs and their fellow travelers. Take that narrative to your neighbors. Work to get out the vote.

Our democracy is in an existential crisis, and only you (and your narrative) can save it.

That was the lesson of Dr. King’s life.

Let’s close with a musical statement that echoes MLK’s message. Watch and listen to “Keep Your Eyes On The Prize“, a folk song from the American civil rights movement. Although the song was composed as a hymn well before World War I, the lyrics in this version were written by civil rights activist Alice Wine in 1956. It is based on the traditional song, “Gospel Plow”, which is also known as “Hold On”, and “Keep Your Hand On The Plow”.

In this version from 2006, Bruce Springsteen starts on vocals, but when Marc Anthony Thompson (with hat) joins him, it becomes a great soul-stirring anthem:

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Monday Wake Up Call – April 3, 2022

The Daily Escape:

Makapu’u Lookout, Oahu, HI – January 2022 photo by TwoBongs on Tour

Let’s talk about the “Wealth Effect”. It’s the notion that when households become richer as a result of a rise in asset values, such as stock prices or home values, they spend more and stimulate the broader economy. The idea is that consumers feel more financially secure and confident about their wealth, even if their income and costs are the same as before.

This concept has been endorsed by two recent former Fed Chairs, Janet Yellen and Ben Bernanke. It’s simply another term for trickle-down economics.

In 2019, after nearly 11 years of the Fed’s policy of adding money to the economy, by “Quantitative Easing” (QE), the National Bureau of Economic Research (NBER) did a study on the Wealth Effect, to quantify how much richer the rich would have had to become to have x% impact on the overall economy, and how long this boost lasts before it fades.

They found that QE makes 10% of the population a lot richer, producing immense concentration of wealth at the top 1%, and mind-boggling concentrations of wealth at the billionaire level. After which, there were some very muted trickle-down effects on the economy.

Wolf Richter used the Fed’s wealth distribution data to create a chart he calls the Wealth Effect Monitor. The Fed divides the US population into four groups by wealth: The “Top 1%,” the “2% to 9%,” the “next 40%,” and the “bottom 50%” to report on wealth.

Richter divides this data by the number of households in each category, to obtain the average wealth per household in each category. Here’s his chart for the past 21 years:

Note the immense increase in the wealth for the 1% households after the Fed’s latest QE effort that began in March 2020. They have been the primary beneficiaries of the Fed’s policies since 2020.

True to the Wealth Effect’s concepts, the Fed’s policies helped to inflate asset prices, and thus only asset owners benefited: The more assets held, the stronger the benefit. Here’s Richter’s analysis of average wealth (assets minus debts) per household, by category in the 4th quarter, 2021:

  • “Top “1%” household (red): $36.2 million
  • The “2% to 9%” household (yellow): $4.68 million
  • The “next 40%” household (purple): $775,000
  • The “bottom 50%” household (green): $59,000

The Fed doesn’t provide separate data on the 0.01% and the Billionaire class, but they were the biggest beneficiaries of the Fed’s monetary policies. The top 30 US billionaires have a total wealth of $2.12 trillion, sliced into 30 slices for a wealth of $70.8 billion per billionaire, according to the Bloomberg Billionaires Index.

Compare that to the bottom half of the US population (the “bottom 50%”) who have a combined wealth of just $3.7 trillion, divided into 165 million slices for each individual. The way percentages work, you would think that households in the bottom 50% would have the largest percentage gains since they start from a lower base. But because they own fewer assets, when adjusted by population, they stay mired in last place. From Richter:

“When the wealth of the bottom 50% increases by 5%, they gain about $3,000. And when the average wealth of the top 30 billionaires increases by 5%, they on average gain $3,500,000,000.”

More from Richter:

“In 1990, the wealth disparity between the average top 1% household and the average “bottom 50%” household was $5 million.”

Since March 2020, the wealth disparity between the average top 1% household and the average bottom 50% household has grown by $11.2 million per household.

The bottom 50% of Americans spend all or nearly all their income on housing, transportation, food, healthcare, etc. They hold few stocks and very little real estate. Add that to our current round of inflation, and in order to get by, the bottom 50% are spending nearly all of their income.

They’re the ones paying for the Fed’s policy of enriching asset holders.

We know that average wages and salaries have gone up a lot. Ben Casselman of the NYT says that the wages of low-wage workers have gone up by nearly 12% in the last year; but remember, that’s on a low base. So the worker bees in our economy have a long way to go, while the richest asset holders got vastly wealthier, thanks to the Fed’s policies.

Time to wake up America! The phony trickle-down theory has amazing persistence among US policy makers, despite being amazingly damaging to most of us.

To help you wake up watch an American icon, Taj Mahal perform “Good Morning Ms. Brown” in 2014 while riding in a mule-drawn carriage in the French Quarter in New Orleans:

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Saturday Soother – April 2, 2022

The Daily Escape:

The Devil’s Churn, Yachats, OR – 2022 photo by Bobbie Shots Photography

The war in Ukraine has brought with it a difficult information environment. We’ve had a hard time sorting the facts from the misinformation. When Biden said in his State of the Union that Russia is “isolated from the world,” that wasn’t exactly misinformation. But it wasn’t exactly true since much of the rest of the world doesn’t see it our way.

The sanctions on Russia are limited largely to the EU and NATO members plus a few other close allies like Australia, Japan, and South Korea. Other countries are much more open to continuing to trade with Russia. That was demonstrated this week by Russian Foreign Minister Sergei Lavrov’s visits to India and China.

China and India have refused to condemn Russia’s invasion outright. Both abstained from voting on UN resolutions demanding Moscow immediately stop its attack on Ukraine. At that vote in March, 144 countries condemned the invasion, but few world leaders other than those in the West have openly criticized Vladimir Putin since then.

After visiting China, where Beijing reiterated that its relationship (which is now even more vital for Russia due to the sanctions) “has no limits”, Lavrov traveled to India. US Commerce Secretary Gina Raimondo criticized India for discussing a rupee-ruble trade arrangement with Russia, which could undermine Western sanctions:

“Now is the time to stand on the right side of history, and to stand with the United States and dozens of other countries, standing up for freedom, democracy and sovereignty with the Ukrainian people, and not funding and fueling and aiding President Putin’s war,”

Visiting India is quite fashionable just now. Earlier this month, leaders from Japan and Australia held summits with their Indian counterparts. And this week, diplomats from Germany and the European Union are visiting Delhi. Lavrov’s visit coincides with a visit by Britain’s Foreign Secretary Liz Truss.

Russia has been critical to India’s increased weapons procurement. In 2018, it signed a $5 billion weapons deal with Russia for air defense missile systems. Some Western estimates say that 50% of India’s military equipment now comes from Russia.

Meanwhile, despite US pressure to increase oil production, the OPEC countries are standing by their deal with Russia. Reuters reported that when asked about Russia’s war with Ukraine at the OPEC meetings, Saudi Energy Minister Prince Abdulaziz bin Salman said that when they hold meetings:

“….everybody leaves his politics at the door”.

Japan also announced that it isn’t pulling out of the Sakhalin-1 offshore oil joint venture it has with Russia. Japanese officials have stressed since Russia’s invasion of Ukraine that the Sakhalin-1 project is crucial for Japan’s energy security.

Everyone knows that Russia is a top global exporter of energy, weapons, and wheat, so many countries are trying to say that Putin’s War isn’t their fight. These nations are all concerned about possible boomerang effects of Russian sanctions on their own economies.

Other nations including Brazil, Pakistan, and South Africa, are also staying on the sidelines.

The US spin is that these countries are actively undermining the effort to bring Russia to heel in Ukraine, but each of them has economic reasons for trying to steer a middle course on the conflict. Americans may see that as morally reprehensible, but they see it as enlightened self-interest.

Enough about geopolitics and whether countries should back the US play with Russia. It’s time for our Saturday Soother, where we try to forget about why Republicans are against capping the price for Insulin.

Or why they seem to be suddenly against what they’re calling “sportsball”. Apparently sports have become so woke that NBA, NFL and college teams are doing things like having woke slogans on their uniforms. That’s making Republicans like Ben Shapiro feel like he’s lost his safe space.

That won’t stop Wrongo and Ms. Right from watching both the men’s and women’s Final Four basketball championships this weekend.

Anyway, it’s time to let go of the internet and find a safe space of our own for a little relaxation. Let’s start by brewing up a mug of Big Trouble coffee ($16/12oz.) from Durham, NC’s Counter Culture Coffee.

Now grab a seat by a south-facing window and listen to the late Julian Bream play “The Miller’s Dance” from Manuel de Falla’s ballet. “The Three-Cornered Hat”. This performance was filmed in La Posada del Potro in CĂłrdoba, Spain in 1985. Bream was one of the most distinguished classical guitarists of the 20th century. He also played a significant role in reviving interest in the lute:

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Monday Wake Up Call – March 28, 2022

The Daily Escape:

Soaptree Yucca at sunset, White Sands, NP – March 2022 photo by SkyVista Photography by Steve Luther

Biden ended his four days in Europe with a speech. It was designed as a call to democratic countries to stay unified even as Putin’s forces trash Ukraine. But with nine ad-libbed words at the end of a 27-minute speech, Biden created a furor by calling for Russia’s President Vladimir Putin to be pushed out of office. Biden said:

“For God’s sake, this man cannot remain in power,”

That last line was a logical conclusion to Biden’s argument in the speech about the struggle between democracy and autocracy. But it prompted many pundits to treat what Biden said as a gaffe, since it changed his long-standing insistence that the US is not engaging in regime change but is supporting Ukraine’s right to exist.

From Charlie Sykes:

“The moment was electrifying — a sort of “Mr. Gorbachev, tear down this wall” moment — until the White House hastily walked it back, insisting that what the president really meant to say was that the butcher of Ukraine should not be allowed to exercise power over his neighbors.“

Sykes says: “Biden had it right the first time.” David Rothkopf hit the nail on the head with his reaction:

“There is within Biden’s comment a kernel of truth….Vladimir Putin can’t lay waste to a country, kill tens of thousands of civilians, commit serial war crimes, and expect to be welcomed back into the community of nations. If Russia wants to be part of the community of nations, then they are going to have to produce change.”

Support for Biden’s idea also came from former Russian Chess champion Gary Kasparov, who said what the world is thinking:

This is precisely correct. Many pundits are critical of Biden for saying something provocative. But there shouldn’t be a resumption of the status quo ante, even once there’s an agreement between Russia and Ukraine. By attacking Ukraine, Russia has become a pariah state. It will remain so as long as it threatens its neighbors and as long as Putin is in power.

There can be no lifting of sanctions or concessions of territory (unless Ukraine insists on conceding it), and no reward or face-saving after the fact for Putin’s War.

Biden’s goal isn’t to negotiate an end to the war. If Ukraine wants to make concessions to Putin which allow him to keep huge chunks of their country, pay no price for the damage he’s done, do nothing to rebuild Ukraine’s flattened cities, and wait a minute until the sanctions are lifted, they can make that call themselves. Neither Biden nor our allies should press that kind of decision on them.

But let Wrongo be the first to say that Russia must be made to pay reparations for the destruction of infrastructure in Ukraine. And keeping sanctions in place until Russia pays up is the right thing to do. You don’t just get grounded for a week when you invade another country.

Russia must leave Ukraine and pay reparations. Russia must work to rejoin the community of nations. That means reestablishment of normal diplomatic and economic relationships. That won’t be possible with Putin in charge.

Russia’s military leadership certainly understands this. And they’re the ones who will have to remove Putin from power and negotiate the peace. So Biden’s frank talk makes transparent what was sub-rosa: The West is using Putin’s War as a way to weaken him to the point where he is ousted from power.

So, when pundits and foreign policy experts get upset with Biden, saying that he gave Putin less reason to negotiate, you have to ask what is there to negotiate? And who, other than Zelensky, should be negotiating with him?

Putin will leave office one way or another, and what Biden said didn’t change that.

It’s time for the pundits and foreign policy wonks to wake up! While it’s true that words matter and can sometimes express risky things that cannot be taken back, what Biden said was worth saying. Biden wasn’t talking to Putin; he was speaking to Russians with the power to remove Putin. And that’s the right strategy.

To help them wake up, listen to Sting reprise his song “Russians” originally from his 1985 debut album titled “The Dream of the Blue Turtles”. The tune was based on the Cold War. Here is his March 2022 version for guitar and cello:

Sting says:

”I’ve only rarely sung this song in the many years since it was written, because I never thought it would be relevant again. But, in the light of one man’s bloody and woefully misguided decision to invade a peaceful, unthreatening neighbor, the song is, once again, a plea for our common humanity.”

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Saturday Soother – March 26, 2022

The Daily Escape:

Crocus in bloom, Holliston, MA – March 2022 photo by Karen Randall

Let’s take a look at three stories that didn’t get their due this week. First, from the LA Times, about gang infiltration of the LA County Sherriff’s department:

“The top watchdog for the Los Angeles County Sheriff’s Department has identified more than 40 alleged members of gang-like groups of deputies that operate out of two sheriff’s stations…..Inspector General Max Huntsman said his office has compiled a partial list that includes 11 deputies who allegedly belong to the Banditos, which operate out of the East L.A. sheriff’s station, and 30 alleged Executioners from the Compton sheriff’s station.”

Huntsman told the LA Times that about a third of the 41 deputies on his list had admitted that they had gang tattoos or belonged to the groups. Allegations aren’t proof but apparently, there is a long history of allegations like this one surrounding the LA Sherriff’s department.

Also consider this article in the WaPo about police wrongdoing:

“The Post documented nearly 40,000 payments involving allegations of police misconduct in 25 departments, totaling over $3 billion. Departments usually deny wrongdoing when resolving claims.”

They found that more than 1,200 officers in the departments surveyed had caused problems resulting in at least five payments each by their municipalities. More than 200 had 10 or more payments for actions that resulted in lawsuits. New York City leads the way with more than 5,000 officers named in two or more claims, accounting for 45% of the money the city spent on misconduct cases. There are 36,000 officers in the NYPD. That’s 13.8%.

Settlements rarely involve an admission of guilt or a finding of wrongdoing. City officials and attorneys representing police departments say settling claims is often more cost-efficient than fighting them in court. Since there’s no formal list of bad actors, there’s little reason to hold these officers accountable.

Law enforcement throughout America gives itself a black eye whenever stories like these are written.

Second, the NYT reported that several of the Republican Senators who suggested that Judge Ketanji Brown Jackson had given uncommonly lenient sentences to felons convicted of child sex abuse crimes had all previously voted to confirm judges who had given out similar prison terms below prosecutor recommendations, the very problem they had with Judge Jackson:

“But Mr. Hawley, Mr. Graham, Mr. Cotton and Mr. Cruz all voted to confirm judges nominated by President Donald J. Trump to appeals courts even though those nominees had given out sentences lighter than prosecutor recommendations in cases involving images of child sex abuse.”

You can read the article for the examples.

Hypocrisy is fuel for politicians, so maybe we shouldn’t be surprised. We know that Sen. Graham had voted only a year ago to confirm Judge Jackson, despite the sentencing decisions she had made as a district judge, the same ones that he now objects to.

Third, Bloomberg reported that private equity money is again pouring into residential real estate markets. They cite Phoenix, AZ as a prime example: (brackets by Wrongo)

“The median home [in Phoenix] was worth about $285,000 at the beginning of the pandemic; it was valued at $435,000 two years later.”

That’s a 53% increase. This is also true in NJ, where Wrongo’s son just got an all-cash offer from an investment group for his home, sight unseen, at 11% higher than the closest offer from a retail home buyer who needed a mortgage.

This is turning first-time home buyers into long-term renters, with real-world consequences.

Home equity represents a huge portion of individual wealth in the US, especially for moderate-income families that have few other opportunities to use borrowed money to purchase assets that can increase in value over time. Price appreciation lets owners accrue wealth which can be tapped later on when they have a large or unexpected expense.

Wall Street’s spin is that there just aren’t enough rentals for families who want to live in good neighborhoods but can’t afford a down payment. So they’re providing a necessary economic service. You be the judge.

Enough of this drama! It’s time to find a way to let go of the tragedy in Ukraine and the clown show surrounding Judge Jackson for a bit. It’s time for our Saturday Soother.

Here on the fields of Wrong, it’s time to take down the deer fencing and put up the bluebird nest boxes. We also need to watch what we can of college basketball’s March Madness.

To help you get ready for the weekend, grab a chair by a large window and listen to Mozart’s “Turkish March” played here on bamboo instruments. It was performed in 2015 by Dong Quang Vinh on a bamboo flute along with the Bamboo Ensemble Suc Song Moi, in Haiphong, Vietnam:

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Saturday Soother – March 19, 2022

The Daily Escape:

Cherry blossoms, Tanque Verde Ridge, AZ – February 2022 photo by Bel Meader

Wrongo and Ms. Right started our return trip from Florida yesterday. We said goodbye to being able to sit on the patio with our coffee at 8 am and to walk without wearing a jacket. Two observations from our visit: First, it’s clear that all older people there are members of a “club”. On our morning walks, everyone said hello, something that doesn’t routinely happen in the north. Second, virtually everyone is maskless in public spaces.

That’s largely due to the public health policies of Florida’s governor and legislature. This time around, it didn’t work out badly for them. But we all should be at least somewhat concerned about what’s visible on the Covid horizon.

We’re talking about the arrival of the Coronavirus BA.2 subvariant. The Omicron we know is BA.1. CNN reports that the BA.2 variant is 80% more transmissible than trusty old Omicron, and about as serious an illness. They also say that BA.2 has been growing steadily in the US. The CDC estimates it is causing about 12% of new Covid-19 cases in America.

Hong Kong is in the throes of a severe wave caused by BA.2. It currently has the highest Covid-19 death rate in the world. The WaPo reports this from China:

“China’s worst coronavirus outbreak in two years has reached almost all parts of the country, stretching medical resources, shuttering businesses, and manufacturing outfits, and raising questions about the government’s staunch commitment to its “zero covid” policy.”

Meanwhile, BA.2 now accounts for more than 50% of cases in the UK and in several European countries.

Here’s an interesting chart from Charles Gaba, showing the point at which Covid deaths in Red states overtook Covid deaths in Blue states:

They crossed when Biden was inaugurated. The graph includes all variants of Covid. It shows the cumulative Covid death rates in the reddest and bluest tenths of the US at the county level. The total population of the 50 US states, plus DC, is right around 331.4 million people. That puts each tenth of the population at around 33.1 million each.

The date may be a coincidence, but the data aren’t. You know why this happened.

We look like we’re about to have another surge. That’s depressing since we are barely past the Omicron surge. If the data coming in from places where Omicron BA.2 is surging hold up, it means that our vaccinations should mitigate the worst of it.

But if you are over 60 or are unvaccinated, or unboosted, or have any medical vulnerabilities, you’d better wear your mask when out and about, even in Florida.

A whole lot of people won’t do you the favor of wearing one, so you should be extra careful.

Time for our Saturday Soother, where we try to forget about what’s happening in Ukraine, or whether Jessie Smollett deserves to be out of jail on appeal. Let’s unplug and relax and think about how Spring is just around the corner. Of course that means yard work on the Fields of Wrong, but it also means enjoying weather like we were having in Florida.

To help you relax, grab a seat by a window and listen to Mozart’s Rondo from the Horn Concerto Number 4 KV 495. This is a trio arrangement played by Sarah Willis (horn), Tamás Velenczei (trumpet) and Jesper Busk Sorensen (euphonium). It was performed live in a virtual concert in the Berlin Chamber Music Hall for the Pacific Music Festival 2021:

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Helplessness Isn’t Solved by Playing Nuclear Chicken

The Daily Escape:

Sunset, Lake Waramaug, Warren, CT – February 2022 photo by Dave King

We’re feeling helpless as we watch what’s happening in Ukraine, because America and NATO won’t step up and stop Putin from laying waste there. Last week, Biden declared:

“I want to be clear: We will defend every inch of NATO territory with the full might of a united and galvanized NATO….But we will not fight a war against Russia in Ukraine. A direct confrontation between NATO and Russia is World War III. And something we must strive to prevent.”

Biden has drawn a red line. Unfortunately, he’s signaling to Putin the things we won’t do. The catch is that Biden’s red line doesn’t cover several non-NATO European countries that Putin might be interested in taking over. It creates a couple of strategic problems.

First, it puts a target on non-NATO countries. NATO fought for Kosovo and Kuwait in similar circumstances. And what about Finland or Taiwan? Second, what should NATO do if Putin uses WMD in Ukraine? Biden’s statement is a failure of strategy. Every time the US says, “We will defend every inch of NATO territory,” Russia hears, “It’s OK to take the rest.” When Putin learns that NATO will do nothing directly to stop his invasion, it decreases his costs of war, and increases what he will demand in the “peace” negotiations.

Back to helplessness. When we feel helpless, our level of anxiety goes up. When our anxiety is high, we say “We have to do something.” It doesn’t take long for us to say, “This is something, so let’s do it.”

That has led Ukrainians and Americans to talk about a No Fly Zone (NFZ) over Ukraine. Robert B. Hubbell had a practical take on what an NFZ requires: (brackets by Wrongo)

”…the no-fly zone over Washington, DC after 9/11 required twelve fighter jets in the air continuously…. DC is 68 square miles, and Ukraine is 233,031 square miles….Ukraine’s [landmass] is 3,400 times larger than DC….it would require a massive commitment of fighter jets to enforce a no-fly zone.”

Hubbell points out that jets on patrol must refuel every two hours, requiring KC-135 tankers to refuel them in mid-air over Ukraine. Our KC-135 tankers would be easy targets. The KC-135s can only stay aloft for six hours, requiring a constant rotation of multiple refueling tankers to keep our combat jets in the air.

We would have to establish air traffic control for our hundreds of aircraft over Ukraine. That would require AWACS aircraft to manage the airspace and detect oncoming threats from Russian jet fighters. Our AWACS would also be targeted by Russia’s advanced S-400 air defense systems that can see deep into Ukraine.

To maintain a no-fly zone in Ukraine, the first action necessary to protect US jets would be to attack S-400 missile systems on Russian territory — an act of war.

The threat of using nuclear weapons is palpable. We know that Putin has thousands of tactical nuclear weapons, while NATO has less than 100 in Europe. Putin declared two years ago that Russia reserved the right to use tactical nuclear weapons in response to conventional attacks. Nuclear weapons are real and deadly threats. We’re in a tight spot with Putin and he seems more willing to use the threat of nuclear weapons than is NATO.

Shay Khatiri offers a different view:

“It would be wrong to assume that, if the US military enters the conflict in Ukraine in some capacity, nuclear war would inevitably follow. First, it wouldn’t be the first time that Americans and Russians have killed each other. The Soviets reflagged their aircraft during the Korean and the Vietnam Wars and directly engaged with their American enemy. They also launched missiles at American aircraft during the war. The United States, on the other hand, has killed Russian mercenaries as recently as 2018 with no ramifications.”

There have been just two conflicts between two nuclear-armed states, (between China and Russia in 1969 and India and Pakistan in 1999). Both were border disputes rather than major wars, partly because the parties were wary of a nuclear escalation.

Nobody knows for sure how Russia and the US would react if they fought in earnest.

Direct military confrontation doesn’t always mean war, much less World War III. Remember that Turkey shot down a Russian warplane on the border with Syria in 2015, without setting off a global conflagration.

Is there a point when NATO will show Putin that it’s not afraid to act? Don’t count on that.

The pressure to act in the coming days will become enormous. The images of Ukrainian suffering already stirs the public, and the images will get worse. The calls for Biden to act will grow louder. American and NATO support to Ukraine has helped the country to resist so far. But Washington and its allies must be honest about the limits of that support and whether we have the willingness to step up to support Ukraine’s needs.

How will Biden handle the great dilemma presented by our feeling of helplessness in Ukraine? Will he play annihilation chicken with Putin?

Watch Fiona Apple’s cover of the Lennon/McCartney song “Across the Universe”. See if it provides you with any insight into Biden’s dilemma:

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Monday Wake Up Call – March 7, 2022

The Daily Escape:

Watson Lake, near Prescott, AZ –  February 2022 photo by Steve Matten

Last week, the Labor Department released its monthly Nonfarm payroll report. It showed strong hiring, and a substantial decrease in unemployment. Employment rose by 678,000 in February, the unemployment rate fell to 3.8%, wages rose by just 1 cent to $31.58 per hour, although wages have risen 5.1% over the past 12 months.

We still have 2.1 million fewer jobs (1.4%) than we had in February 2020 just before the start of the pandemic. At the average rate of jobs growth for the past 6 months, it’s about 4 more months before we get back to where we were. From Krugman:

“…what people are actually experiencing in their daily lives is a very strong job market. For example, according to the latest survey from the Conference Board, 53.8% of consumers said that jobs were “plentiful,” a near-record, while only 11.8% said that jobs were hard to get.”

More from Krugman:

“Yet the public doesn’t believe it. According to a new survey by Navigator Research, only 19% of Americans believe that the US economy is experiencing more job growth than usual, while 35% say that it is experiencing more job losses than usual.”

Pandemic unemployment peaked in April 2020 at 14.7%. Back then, Congress was afraid of the country entering another depression, or at best a recession similar to 2008. Congress decided to prop up the economy through a fiscal stimulus called the first CARES Act. Many politicians have talked about how the CARES Act was the financial jolt that has caused inflation to spike.

You probably didn’t realize just how large that unemployment aid was. When unemployment benefits were at their peak in June 2020, the government pushed $1.395 trillion dollars out to the unemployed. Here’s a chart from the St. Louis Fed that shows how fast and how high that cash injection into the economy moved:

Today, these unemployment payments have shrunk by 98% to $26.7 billion. So where in our economy did that $1.4 trillion go? It went primarily to goods purchased locally at Mom & Pop stores and supermarkets. It also went to the big box stores like Walmart, Costco, and Target. It went to Amazon and hundreds of online retailers. At the Mansion of Wrong, it also went to Peloton.  And it went to online services, like Netflix and online education.

Americans spent less than usual on services, so we saw huge job losses in the services sector. Statista reports that we are still short 3.75 million jobs in the services sector and less than .5 million in manufacturing. Leisure and hospitality account for 1.38 million of the total, while losses in education, health services and government also remain high.

Much of today’s inflation is the result of this trillion-dollar unemployment stimulus. Barry Ritholtz interviewed Rebecca Patterson, Director of Investment Research at Bridgewater Associates. She described how the one-two punch of monetary and fiscal stimulus led to a “Demand Shock” where demand for durable goods overwhelmed what manufacturers could supply. She says that while global manufacturers ramped up production by 5% above pre-pandemic levels, demand for those same goods rose by 20%. This is a large part of the inflation spike we’re experiencing, and why the Fed has called it a “transitory” problem.

America’s response to the pandemic reminds us that the way our government responds to crises brings different impacts to different parts of our society.

The Federal Reserve’s expansionary monetary stimulus since 2008 has primarily benefited corporations and the well-off who could buy ever more expensive assets with very cheap money. Fiscal stimulus like the CARES Act and like the new infrastructure bill mostly benefit the bottom 50% of the country: low-wage labor, the unemployed, and the middle class.

So the economy is doing just fine for the top 10% and the upper middle class. But people who make minimum wage aren’t flying to Barcelona this year. They’re not eating at high-end restaurants. When they shop, it isn’t at boutiques. They continue to split financial hairs trying to figure out how to feed their kids and keep a roof over their heads, because rents are rising everywhere in the US and the price of food is going out of sight.

Add to this the interest rate hikes we know are coming, and things aren’t getting better for the lower middle class or people in poverty.

The discussion of the impact that fiscal stimulus had on our labor market isn’t finished. No one really knows why so many people haven’t returned to work, despite the roaring economy.

Time to wake up America! Some Americans are going through hard times. Clearly, people in Ukraine are facing terror that is much worse than here at home. Maybe this cover of Neil Young’s “Harvest Moon” by The Brothers Comatose with AJ Lee can bring a momentary comfort in this age of discomfort:

Watch it, you won’t be disappointed.

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Saturday Soother – March 5, 2022

The Daily Escape:

Herring Cove, Provincetown MA – February 2022 photo by Karen Riddett

Wrongo and Ms. Right went to the big box store yesterday. Most of the things on our list were out of stock. We also needed to fill the car’s gas tank. Local prices ranged from $3.65 to $3.92/gal. We filled up at the place with the lower number.

This is before any effects of Putin’s War on prices here at home. One product that will be impacted is wheat. Russia is the largest exporter of wheat in the world, and Ukraine is #2. Reuters says that the two countries account for about 29% of global wheat exports. They also say that US wheat futures rose to a 14-year high earlier this week.

The reason is that major wheat exporters aren’t holding as much wheat in storage as they do usually. Wheat stocks are set to fall to a nine-year low of 57 million tons by the end of the 2021/22 season. The news gets worse: If Russia and Ukraine are excluded from those holdings, other major global wheat exporters account for just 16% of the global stock.

That’s enough wheat to feed the world for less than three weeks.

The majority of wheat stock that isn’t in the hands of major exporters is held by China. China’s expected to account for 47% of global inventories at the end of the year. And last Thursday, China started approving imports of Russian wheat that had been blocked for years over Beijing’s concerns about fungus and other contaminants. The countries had announced that China would begin importing Russian wheat and barley shortly after Putin visited China ahead of the Beijing Olympics.

Emptywheel reports that Russia imports a significant portion of the wheat seed it needs for each growing season:

“…where will Russia buy the wheat seed needed? (Depending on source, there’s a disparity in what percentage of wheat seed Russia imports, but it’s between 18-40% depending on spring, hard wheat, or other type.)”

Will Russia purchase seed from China and India? Will those two countries accept rubles? Or will they look to barter for something else in trade, like natural gas?

Ukraine is in an even worse position. Reuters says that Ukraine has confirmed stoppage of its grain exports until the end of the Russian invasion. There is a chance that supplies for the next season from both Ukraine and Russia could also be in jeopardy, pending the duration and outcome of the war.

They also report that Ukraine accounts for 16% of world corn exports. Ukraine and the US are the only world corn exporters until Argentina and Brazil gear up to export their crops. Apparently, Ukraine still has a good deal of its 2021 corn crop to ship, but given Russia’s closing of Ukraine’s access to the sea, that may be problematic.

As the Northern Hemisphere enters spring, grain planting is right around the corner for both Russia and Ukraine.  Corn is going in for Ukraine and spring wheat for Russia. It’s highly uncertain how Putin’s War will impact crop production this spring. Russia has yet to plant 30% of its 2022 wheat crop.

Brazil imports wheat because it can’t grow enough for its own consumption. After Trump closed soybean exports to China, Brazil moved land into soybean production for the Chinese market. Brazil could try to increase acreage dedicated to wheat, but new Brazilian acreage comes at the expense of further destroying their forests, a terrible tradeoff.

We are looking at the emergence of a global economic war of attrition brought about by the sanctions regime. The target is Russia, but economic costs will spill over to the rest of the world.

On that note, it’s time to unplug from the terrible news that for the moment, is mostly caused by a terrible country.

It’s time for our Saturday Soother. We can’t escape the cold blustery weather in Connecticut, so it’s another indoors weekend here at the Mansion of Wrong. Let’s start by brewing up a mug of Monarch Estate Gesha ($42/4oz.) from Honolulu’s own Monarch Coffee. The roaster says it has subtle, sweet flavors of berries, mango, honeydew, apple, and pear. Note the price. Coffee prices have spiked along with many other items.

Now grab a seat by a big window and listen to Hauser performing the cello solo in “Adagio” by Albinoni, accompanied by the Zagreb Philharmonic Orchestra in Zagreb, Croatia in 2017. This weekend, given the tragedy in Ukraine, it’s nice to listen to music that transports us to a place where there’s peace:

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