Domino’s Will Build the Roads

People often ask who would build the roads in a libertarian society. This week brought a new answer: Domino’s.

On Monday, the pizza company unveiled its “Paving for Pizza” initiative, promising to partner with customer-nominated towns to fix up pot holes, repair road surfaces, and otherwise help provide a service many Americans think of as an exclusively public responsibility.

“Have you ever hit a pothole and instantly cringed? We know that feeling is heightened when you’re bringing home a carryout order from your local Domino’s store,” said company president Russell Wiener in a press release. “Domino’s cares too much about its customers and pizza to let that happen.”

So far, Domino has helped fix up roads in one town apiece in Texas, Georgia, Delaware, and California. The company has plans to partner with as many as 20, according to Domino’s Public Affairs Director Jenny Fouracre.

Each of those 20 cities is getting a $5,000 grant, so Domino’s is committing as much as $100,000 to its infrastructure initiative. That won’t buy you much blacktop, but some cities are still happy to have it.

“For us it really paid off and it’s been viewed as a positive in our community,” says Eric Norenberg, city manager of Milford, Delaware, whose town put their $5,000 grant toward fixing up 40 potholes.

Yearly road maintenance, says Norenberg, can take up about 10 percent of his city’s operating budget. The state covers just a little bit of that and the federal government none, so the corporate sponsorship is welcome.

“It’s not something we’ve done before. In a situation like this, if all other things were equal, we would try to something similar. I really hope this means that other companies will look to step up.”

Of course even this small private grant has been enough to stoke fears of an imminent corporate takeover of the nation’s roads.

“This feels like something from a William Gibson cyberpunk dystopia novel, where the government has become so weak and useless, private corporations have been taking over the basic upkeep of the nation,” writes Jason Torchinsky over at Jalopnik.

“What kind of state are we in as a society when Domino’s pizza takes a responsibility to fill potholes. Filling potholes is a function of government. Ultimately the goal for Domino’s is to sell more pizzas. That shouldn’t be the reason to fill potholes,” opined one Twitter user.

Yet this is exactly the reason the government fills pot holes. Well, one of the reasons at least.

Roads exist to service people’s transportation needs, whether that’s getting to and from work, schlepping freight between cities, or, yes, delivering freshly cooked pizza. Aligning the funding of roads with the purposes they’re used for would make infrastructure more responsive to the end user.

Moving to a more user-focused highway system could look like something radical, such as selling or leasing whole urban highways to private companies (as they’ve done in Santiago, Chile), or it could look a bit more mundane, such as spending people’s gas tax dollars on actually building and maintaining the roads they drive on.

Either option would be far different from how the public sector manages our roads in a lot of states, says Baruch Feigenbaum, a transportation expert with the Reason Foundation (the nonprofit that publishes this website).

“In some states the road conditions are terrible,” says Feigenbaum, speaking of interstate highway conditions. “There hasn’t been much of new capacity, and in terms of offering in terms of what we would call services” like towing, car repair, and food and drink options at rest stops. (Federal law prohibits the commercialization of interstate rest stops.)

These poor conditions often result from politicians siphoning money away from road infrastructure that people actually use to build out bike lanes and transit systems that politicians would prefer them to use.

Take California, which has some of the highest gas taxes in the country—and also some of the worst maintained highways. In 2017 state politicians upped their gas tax even more on the promise of fixing up its roads, then took $2.4 billion of that extra money and put it toward buying light rail vehicles and electric buses.

Feigenbaum says it would be relatively easy—technically, if not politically—to sell or lease poorly maintained interstate highways to private entities, who would then be contractually obliged to maintain them in a certain condition, making back their investment with tolls.

This is, of course, pretty theoretical. As much as libertarians might wish for a Snow Crash–like future of private highways knitting together semi-sovereign suburbs, officials and voters and even corporations themselves are still skeptical of the idea.

Asked what Domino’s position on privatizing roads was, Fouracre said it had none.

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Trump Isn’t Pushing Back Against Senate Plan To Kill His ZTE Deal

Now that President Donald Trump has notched what he views as another foreign policy victory in his historic meeting with North Korean leader Kim Jong Un, Republican lawmakers have noticed something unusual: Trump isn’t trying to dissuade lawmakers from supporting a measure that would thwart a White House deal with Chinese telecoms giant ZTE – a deal that many viewed as a sop to secure Chinese President Xi Jinping’s blessing for this week’s summit with North Korea, according to the Wall Street Journal.

Trump hasn’t resorted to using any of his favorite tactics for whipping up votes (for example, using Twitter to bash lawmakers who oppose him), and, in fact, has done little to stop the measure – which the Senate yesterday attached as an amendment to a “must-pass” defense authorization bill – from moving forward.

ZTE

Trump’s lack of enthusiasm for saving ZTE has prompted some lawmakers to speculate that he “doesn’t care” about saving the company, which would effectively be forced to shut down if it’s cut off from buying US exports.

“I don’t think the president cares about ZTE,” Sen. Bob Corker (R., Tenn.) told reporters. “Someone told me that he gave [GOP lawmakers] a wink and a nod and told them he didn’t care. I don’t know if that’s true or not, but I think he did what he did for the Chinese leader but he doesn’t really care what Congress does.”

Representatives for the White House, the Commerce Department and ZTE didn’t immediately comment.

ZTE shares plunged 41.5% last night – the company’s largest one-day drop in its history – when they opened for trading in Hong Kong after being suspended for two months. The drop wiped out some $8 billion in market value. Shraes of NXP fell 1.4% in premarket trading in the US Wednesday extending a weekly decline on news that the amendment to kill the ZTE deal might go through.

ZTE

In the weeks leading up to Trump’s meeting with Kim, the president spent hours in private meetings trying to convince Republicans to support the White House’s decision to give ZTE another chance. But Trump’s pleas did little to disabuse lawmakers of their opposition to the deal. In fact, the Senate is expected to pass the defense bill – with the ZTE-killing amendment attached – later this week. And it’s looking increasingly likely that the House will adopt a similar measure during the conference committee for the bill.

Sen. Tom Cotton, one of the amendment’s main backers, said he believes Trump won’t veto the defense bill if it passes with the ZTE measure attached – though he wouldn’t say where he got the idea.

On Monday, Mr. Cotton predicted that Mr. Trump wouldn’t use his veto power to reject the defense bill over the ZTE language. Mr. Cotton, who speaks regularly to Mr. Trump, declined to say whether the president had given him a personal guarantee. “I don’t reveal my private conversations with the president,” Mr. Cotton said.

In a Tuesday interview, Mr. Van Hollen said: “If the president’s backing down, that’s a good thing for the country.” He added: “We would welcome a statement from the president saying he made a mistake and that he now supports the bipartisan amendment on this.”

The Commerce Department announced in April that it would prohibit US companies from selling parts to ZTE, a move that effectively doomed the company. Roughly a month later, Trump tweeted that he and Chinese President Xi Jinping were searching for an alternative way to deal with the ZTE problem as Trump declared “too many jobs in China lost!”

While that tweet incensed many lawmakers and officials involved in the defense and intelligence sectors (many have long suspected ZTE and other Chinese telecoms firms of aiding Chinese intelligence gathering efforts), it suggested that ZTE would be a key component of the grand “deal” that Trump is seeking to forge with China (though Wilbur Ross has insisted that the administration’s decision to spare ZTE wasn’t part of a broader quid pro quo).

Instead of banning ZTE from buying US goods, the company will pay a $1 billion fine, and place an additional $400 million in escrow to be paid out if the company again violates its settlement with the US government. In addition, the company has promised to replace its senior leadership and its entire board, while also funding a compliance operation that will continue for the next decade.

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Power Goes Out Across All Of Crimea: Entire Peninsula Loses Electricity

According to Reuters and local news agency Kryminform, on Wednesday the entire peninsula of Crimea lost power around 3:25 p.m., local time.

“All Crimea and Sevastopol are without power. It’s down everywhere. We’re looking into the cause,” a source told the website. Locals have also reported problems with mobile phone service.

  • MAIN CITIES IN CRIMEA SUFFER POWER BLACKOUT – TWO WITNESSES – Reuters
  • HEAD OF CRIMEA CONFIRMS POWER BLACKOUT ON THE WHOLE TERRITORY OF CRIMEA

As Meduza.io reports, Kubanenergo (the Kuban Power and Electrification Open Joint Stock Company) confirmed a large-scale “technical shutdown” of the power line that feeds electricity to the Crimean peninsula, telling Kryminform that it expects to fix the issue within two hours.

But before speculation builds that this is some US government black hat hacker launching a cyber war against Ukraine Russia, Tass cites a source in Russia’s emergency management service who said that the reason for the power outage is an accident at the “Taman” substation in the Krasnodar Territory. Google translated:

The reason for the power outage on the Crimean peninsula was an accident at the substation “Taman” in the Krasnodar Territory. A source in emergency services told Tass.

“According to preliminary data, because of the accident at the substation” Taman “, located in the Krasnodar Territory, the power supply on the Crimean peninsula was violated,” the source said.

Correspondents Kryminform reported that in the center of Simferopol trolley buses stopped, traffic lights did not work, lifts were disconnected in apartment houses. Government buildings, bank branches, some stores are connected to backup power sources.

In the Kubanenergo electric grid company, Kryminform was informed of a large-scale shutdown of the line supplying electricity to the Crimean peninsula. And information about the disconnection of the entire territory of the peninsula from energy conservation Kryminformug was also confirmed by two sources in the enterprises of the telecommunications sphere in the Crimea.

That said, with the World Cup starting in Russia tomorrow, and with 2 World Cup stadiums near by Crimea – in Rostov-on-Don and in Sochi, a lightbulb has just gone off above the Pentagon’s head.

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Trump Nominated For Nobel Peace Price… By Norway

The summit in Singapore has made US President Donald Trump “a man of peace,” according to two Norwegian parliamentary representatives (from the Frp party), and as NRK reports, they have nominated him for the most gifted award of all of them.

Representatives Christian Tybring-Gjedde (Frp) and Per-Willy Amundsen (Frp) believe it qualifies Trump for the Nobel Peace Prize.

What’s happening now is historical. A process is underway to ensure world peace in the future. It’s a fragile process, but we must of course do what we can to help this process bring good results. I think that we can do by sending a clear signal by giving Trump the peace prize.”

And amid all the left’s dismay at just what was agreed, the two Norwegian parliamentarians, however, do not believe that a peace-winning nomination is too early.

“It’s not a binding agreement, but it’s an initiative to visit both ways, it’s an initiative to end the disaster going on and to put a damper on the military exercises the United States has with South Korea. As such, this is a push to Donald Trump to continue what he has already started,” says Tybring-Gjedde.

“It would not be the first time giving the peace prize to anyone involved in a process. It has happened before. Obviously, we will follow the process carefully, but at least you have arrived, I think is worth a peace prize, “says Amundsen.

The Norwegian nomination follows a group of 18 GOP lawmakers led by Rep. Luke Messer of Indiana, who signed a letter formally nominating President Trump for the 2019 Nobel Peace Prize in May.

We can think of no one more deserving of the Committee’s recognition in 2019 than President Trump for his tireless work to bring peace to our world.”

Mission Accomplished?

The Nobel Committee received peace prize nominations at Donald Trump in both 2016, 2017 and 2018. However, this year the alarm went off, and the Nobel Institute linked the police because they thought they had received a fake nomination on Trump .

Trump’s nomination this year will be for the 2019 Nobel.

“In this situation, Trump is obviously a man of peace. He tries to get something that others have not gotten, and when he makes it, he deserves fame,” says Tybring-Gjedde.

Amundsen adds that he thinks the summit and the agreement between Trump and Kim, go right into Nobel’s testament.

“This goes straight into the core of the Nobel testament. It’s about disarmament and about creating peace. These are the results that count.”

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Mark Sanford Loses Primary, the Nightmares Continue for Trump’s Republican Skeptics: Reason Roundup

SanfordTuesday’s primary results were bad for Republicans in general, but even worse for those on the right who dare to criticize President Donald Trump. Rep. Mark Sanford (R–S.C.), a fiscal conservative whose libertarian leanings made him skeptical of Trump, lost his re-election bid to state Rep. Katie Arrington. (Arrington will face Democrat Joe Cunningham in November.) Sanford conceded late Tuesday night, admitting that “the numbers indicate I am not going to win this race.”

The fact that Trump issued a tweet Tuesday afternoon imploring primary voters to pick Arrington over the “very unhelpful” Sanford probably didn’t help his chances.

The former governor is best known for disappearing for several days in 2009. It turned out he had flown to Argentina to spend time with his girlfriend, with whom he was having an extramarital affair. Trump’s tweet is a reference to the infamous episode, though the president is certainly in no position to criticize other married men for such mistakes.

Aside from the visit to Argentina, Sanford is remembered for vetoing pork-barrel spending and rejecting stimulus funds with the zeal of a Ron Paul groupee. And he’s been increasingly at odds with Trump as of late, frequently voting against the president.

Also in Virginia, Republican voters chose Corey Stewart to challenge Sen. Tim Kaine in November. You may or may not be surprised to learn that Kaine was Hillary Clinton’s vice presidential pick in the 2016 election. (Seriously, he’s quite forgettable.) You also may or may not be surprised to learn that the challenger, Stewart, was previously pals with some white nationalists and is a big defender of Confederate monuments.

Elsewhere, Democrats picked up a Wisconsin state senate seat in a district that Trump won by 16 points in 2016. All in all, it was a pretty good night for the Democrats, except in South Carolina’s 5th Congressional District, where admitted wife-beater Archie Parnell routed his primary opponents to clinch the Democratic nomination. He recently lost all support from the party, and his campaign staff, who resigned en masse.

FREE MINDS

The Foundation for Individual Rights in Education (FIRE) finds that a majority of students support due process protections for those accused of underrage drinking, sexual misconduct, or otherwise breaking rules on campus. The poll, which was released this morning, was conducted by YouGov:

The survey reveals that many college and university policies do not reflect student attitudes toward due process on campus. American students think their classmates deserve many of the procedural protections outlined by FIRE in the 2017 Report. In fact, in all but one situation described in the survey, a majority of student respondents supported the ten fundamental elements of due process highlighted in the 2017 Report….Not only do the vast majority of students think their classmates should have due process rights, but they also feel that these rights are important: 98 percent of students think that it is very important or important that students have due process protections in college.

The key finding: “A majority of student respondents support nine of the ten fundamental elements of due process.” Respondents were less supportive of due process when it came to sexual misconduct cases, but solid majorities still backed fundamental fairness.

FREE MARKETS

The AT&T merger with Time Warner is happening—the Department of Justice lost its bid to block the sale on Tuesday. Reason‘s Scott Shackford describes the federal government’s attempt to stop the merger as “ill-advised” and notes that the outcome is undoubtedly good news:

AT&T is a service provider buying up a content producer, making a single, stronger company that’s better able to compete. This doesn’t produce less competition in the marketplace.

The decision is also a blow to Trump, Berin Szoka tells Politico:

“Trump’s meddling in law enforcement actions, his attacks upon particular companies, and his utter unpredictability have created the kind of legal uncertainty common in ‘banana republics,'” said Berin Szóka, president the libertarian group TechFreedom. “At least in antitrust law, the courts, not Trump officials, will have the final say on what the law really is.”

QUICK HITS

  • After maligning the women of the #MeToo movement, Turning Points USA’s Candace Owens is losing support. Her boss, Charlie Kirk, has apparently asked conservative activists not to criticize her publicly.
  • Chip and Joanna Gaines, stars of the HGTV home improvement show Fixer Upper, have been ordered to pay $40,000 to the Environmental Protection Agency for failing to follow proper lead paint safety protocols. The government is also forcing them to discuss the issue on an upcoming episode.
  • People really care about a raccoon stuck to the side of an office building in St. Paul, Minnesota.
  • The Atlantic‘s Conor Friedersdorf eloquently answers a question posed by a feminist academic in The Washington Post: “Why can’t we hate men?”
  • We can all hate Bill Clinton, though.

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Career State Department Officer Rages: 5 Media Myths Of Trump-Kim Summit

In the midst of Tuesday’s historic Trump-Kim summit and accompanying myriad pundits giving their hot takes on mainstream news networks, 24-year State Department veteran and geopolitics expert Peter Van Buren began an epic rant on twitter with the following: “If you’re keeping score at home, every pundit and MSM head who claimed the summit would never happen, or Trump would blow up, is now 100% and forever wrong. Still watching CNN????”

Van Buren is best known as a whistleblower who was ousted from a successful career as a foreign service officer after he chronicled the astronomical amount of US government waste, fraud, criminality and abuse in post-Saddam Iraq based on his experience leading two reconstruction teams for the State Department. 

His 2011 book, We Meant Well: How I Helped Lose the Battle for the Hearts and Minds of the Iraqi People, which precipitated a lengthy legal battle with the US government as he stood accused of leaking allegedly sensitive and classified information in the book, initially earned him the ire of beltway bureaucrats, mainstream pundits, fanatical neocons, and liberal interventionists alike. But he was proven right

Career State Department officer and U.S. Envoy to Iraq Peter Van Buren. Image source: We Meant Well

During and after the Trump-Kim meeting Van Buren live tweeted in reaction to the cable news shows repeatedly slamming the whole event as a charade merely meant to score domestic propaganda victories for both leaders.

Here are 5 media myths which persisted throughout the day’s wall-to-wall mainstream coverage based on career State Department expert Peter Van Buren’s analysis…

* * *

Myth #1: Trump “betrayed” US ally South Korea

No, the South Korean’s were not “betrayed” or “abandoned” as Vox , MSNBC, and many others claim — the reality is opposite: the peace efforts are being led by the South Koreans, as President Moon Jae-in’s own unambiguous words indicate, saying he was very happy with the meeting. 

“I offer my heartfelt congratulations and welcome the success of the historic North Korea-United States summit,” Moon’s statement begins.

The fact remains that 81% of South Koreans supported the summit, and 88% supported the prior Kim-Moon summit. Moon also has an 86% approval rating. 70% of Americans support the meeting.

The pundits now claiming “betrayal” of South Korea have no clue what they’re talking about.

Myth #2: Trump “empowered” and “legitimized” Kim

Most government pundits still making the rounds on the cable news shows are either former Obama-era officials or raving necons: as Van Buren points out they were part of the problem to begin with, creating a constant haze of impressions that Washington and Pyongyang must of necessity be on a permanent war footing.

As Van Buren writes in his new Reuters op-ed piece“Trump did not empower Kim. Meeting with one’s enemies is not a concession. Diplomacy is not a magic legitimacy powder the United States can choose to sprinkle on a world leader. The summit acknowledges the like-it-or-not reality of seven decades of Kim-family rule over a country armed with nuclear weapons.”

Van Buren outlines the failures of those who previously revolted at the State Department due to a claimed “void” at the center of the Trump White House’s Korea policy and diplomacy:

Only a few months ago State Department North Korean expert Joseph Yun’s retirement triggered a round of dire claims of “a void at [the] head of Trump’s Korea diplomacy”. Similar predictions were made over the lack of an American ambassador in Seoul. The State Department was decimated. (“The Trump administration has lost the capacity to negotiate with other countries,” wrote one journalist.) The Council on Foreign Relations assessed the chances of war on the peninsula at 50 percent.

“They’re the last people anyone should be listening to at this point” as it was their “earlier failures” in diplomacy that “made the summit necessary,” Van Buren concludes.

Myth #3: The summit marks a “propaganda victory” for North Korea

Media commentators throughout the day were outraged to see the American and North Korean flags displayed on equal footing.

Van Buren responds by pointing out what is obvious and common protocol for all such historic summits, even the potentially contentious ones, including Obama’s trip to Havana to mend US-Cuban relations in 2016:

The Cuban and American flags together: President Obama and President of Cuba Raúl Castro at their joint press conference in Havana, Cuba, March 21, 2016. Image source: Flickr

Myth #4: Trump “gave away the store” with “too many concessions”

The ink was barely dry on the Trump-Kim signed agreement when Bloomberg ran this headline: “Trump Gives Away the Store in Singapore”.

Nope, says Van Buren. He responds: “What didn’t happen in Singapore is also important. Trump did not give away ‘the store.’ In fact, there is no store Trump could have given away. The United States agreed to suspend military exercises which have been strategically canceled in the past, and which can be restarted anytime. The real deterrent is off-peninsula anyway: B-2s flying from Missouri, and missile-armed subs forever hidden under the Pacific.”

Myth #5: The agreement will fail for lack of details and its vagueness 

Van Buren writes: “It is easy to announce a morning-after defeat for Trump: to criticize the agreement as vague and lacking in specific commitments regarding denuclearization. But those critics ignore Kim’s moratorium on nuclear and ballistic missile testing, the return of American prisoners, the closing of a ballistic missile test site, and the shutting down of a major nuclear test facility without opening a new one.”

And he points out just how close the world was to major war a mere months ago: “It is easy to forget that a few months ago North Korea was still testing nuclear devices to spark fears of a dark war. Calling the Singapore summit a failure in light of more detailed agreements and different efforts from the past ignores the reality that all of those past agreements failed.”

And finally, Van Buren says there’s reason to be cautiously optimistic after Tuesday’s summit:

Success on the Korean peninsula, as in the Cold War, will be measured by the continued sense that war is increasingly unlikely.

The summit created the platform. The key to what happens next is how Trump, Moon and Kim work to resolve that issue.

We wholeheartedly agree: this week has brought many reasons to be hopeful for the future of US-North Korean relations. 

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The ‘Real’ America: 21.5% Unemployment, 10% Inflation, And Negative Economic Growth

Authored by Michael Snyder via The Economic Collapse blog,

Every time the mainstream media touts some “wonderful new economic numbers” I just want to cringe.  Yes, it is true that the economic numbers have gotten slightly better since Donald Trump entered the White House, but the rosy economic picture that the mainstream media is constantly painting for all of us is completely absurd. 

As you are about to see, if honest numbers were being used all of our major economic numbers would be absolutely terrible.  Of course we can hope for a major economic turnaround for America under Donald Trump, but we certainly are not there yet.  Economist John Williams of shadowstats.com has been tracking what our key economic numbers would look like if honest numbers were being used for many years, and he has gained a sterling reputation for being accurate.  And according to him, it looks like the U.S. economy has been in a recession and/or depression for a very long time.

Let’s start by talking about unemployment. 

We are being told that the unemployment rate in the United States is currently “3.8 percent”, which would be the lowest that it has been “in nearly 50 years”.

To support this claim, the mainstream media endlessly runs articles declaring how wonderful everything is.  For example, the following is from a recent New York Times article entitled “We Ran Out of Words to Describe How Good the Jobs Numbers Are”

The real question in analyzing the May jobs numbers released Friday is whether there are enough synonyms for “good” in an online thesaurus to describe them adequately.

So, for example, “splendid” and “excellent” fit the bill. Those are the kinds of terms that are appropriate when the United States economy adds 223,000 jobs in a month, despite being nine years into an expansion, and when the unemployment rate falls to 3.8 percent, a new 18-year low.

Doesn’t that sound great?

It would be great, if the numbers that they were using were honest.

The truth, of course, is that the percentage of the population that is employed has barely budged since the depths of the last recession.  According to John Williams, if honest numbers were being used the unemployment rate would actually be 21.5 percent today.

So what is the reason for the gaping disparity?

As I have explained repeatedly, the government has simply been moving people from the “officially unemployed” category to the “not in the labor force” category for many, many years.

If we use the government’s own numbers, there are nearly 102 million working age Americans that do not have a job right now.  That is higher than it was at any point during the last recession.

We are being conned.  I have a friend down in south Idaho that is a highly trained software engineer that has been out of work for two years.

If the unemployment rate is really “3.8 percent”, why can’t he find a decent job?

By the way, if you live in the Boise area and you know of an opening for a quality software engineer, please let me know and I will get the information to him.

Next, let’s talk about inflation.

According to Williams, the way inflation has been calculated in this country has been repeatedly changed over the decades

Williams argues that U.S. statistical agencies overestimate GDP data by underestimating the inflation deflator they use in the calculation.

Manipulating the inflation rate, Williams argues in Public Comment on Inflation Measurement , also enables the US government to pay out pensioners less than they were promised, by fudging cost of living adjustments.

This manipulation has ironically taken place quite openly over decades, as successive Republican and Democratic administrations made “improvements” in the way they calculated the data.

If inflation was still calculated the way that it was in 1990, the inflation rate would be 6 percent today instead of about 3 percent.

And if inflation was still calculated the way that it was in 1980, the inflation rate would be about 10 percent today.

Doesn’t that “feel” more accurate to you?  We have all seen how prices for housing, food and health care have soared in recent years.  After examining what has happened in your own life, do you believe that the official inflation rates of “2 percent” and “3 percent” that we have been given in recent years are anywhere near accurate?

Because inflation is massively understated, that has a tremendous effect on our GDP numbers as well.

If accurate inflation numbers were being used, we would still be in a recession right now.

In fact, John Williams insists that we would still be in a recession that started back in 2004.

And without a doubt, a whole host of other more independent indicators point in that direction too.  The following comes from an excellent piece by Peter Diekmeyer

Williams’ findings, while controversial, corroborate a variety of other data points. Median wage gains have been stagnant for decades. The U.S. labour force participation rate remains at multi-decade lows. Even our own light-hearted Big Mac deflator suggests that the U.S. economy is in a depression.

Another clue is to evaluate the U.S. economy just as economists would a third world nation whose data they don’t trust. They do this by resorting to figures that are hard to fudge.

There, too, by a variety of measures—ranging from petroleum consumption to consumer goods production to the Cass Freight Index—the U.S. economy appears to have not grown much, if at all, since the turn of the millennium.

In the end, all that any of us really need to do is to just open our eyes and look at what is happening all around us.  We are on pace for the worst year for retail store closings in American history, and this “retail apocalypse” is hitting rural areas harder than anywhere else

This city’s Target store is gone.

So is Kmart, MC Sports, JCPenney, Vanity and soon Herberger’s, a department store.

“The mall is pretty sad,” says Amanda Cain, a teacher and mother. “Once Herberger’s closes, we’ll have no anchors.”

About two-thirds of Ottumwa’s Quincy Place Mall will be empty with Herberger’s loss.

Of course it isn’t just the U.S. economy that is troubled either.

We are living in the terminal phase of the greatest debt bubble in global history, many nations around the globe are already experiencing a very deep economic downturn, and our planet is literally in the process of dying.

So please don’t believe the hype.

Yes, we definitely hope that things will get better, but the truth is that things have not been “good” for the U.S. economy for a very, very long time.

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Local News Uncritically Publicizes Mother’s Kidnapping Freakout

AbductionThe headline is terrifying: “Mother gives warning after attempted abduction at rest stop.”

And yet the story is anything but. See if you feel the same.

“A woman is giving a stark warning after she says two women and three men attempted to abduct her daughter at a rest stop on Interstate 74 in Indiana,” reported 10TV.com in Columbus, Ohio.

Here’s the mom’s Facebook post:

PSA: so we are driving home from Cincinnati and got off at a rest stop for a quick bathroom break. Just my daughter and I went inside (i didn’t have my phone or purse on me). As we were walking in some lady who appeared to be on something, was trying to talk to my daughter, I held her hand the entire way in and walked swiftly ahead. As the lady was trying to talk to us she was also lighting a cigarette which she immediately extinguished upon us entering building. We went to far end handicap stall and went in together. I heard the lady enter and she was talking to another lady about us heard her say “the little girl”, I told my daughter we weren’t washing hands and I was going to carry her out. As we leave I passed both women and the one that I originally saw had changed clothes and started to leave after us leaving her bag on the floor of the stall she was in. The other lady with her was probably 6′. I then made a dead sprint to the car, threw my daughter in and locked doors. Once we were safely in car I noticed 3 men standing in front of a gold minivan with all the doors open…We called 911 and reported it and I have this terrible feeling that had I not been aware of my surroundings my daughter may have been taken from me. It is a terrifying world we are living in []. I wanted to share to try to remind everyone to be aware of your surroundings, hold on to your children and stay off your phones so you are not distracted!!!

She may have a “terrible feeling” that a kidnapping was about to take place, but stranger danger is so rare that even the National Center for Missing and Exploited Children—the folks who put missing kids pictures on the milk cartons and neglected to tell us most of them were run-aways or taken in custody disputes—has asked people to stop using the term. And David Finkelhor, head of the Crimes Against Children Research Center, told me he had heard of no children ever abducted from their parents in public for sex trafficking purposes, which seems to be the main fear these days.

A private citizen spreading fear on Facebook (perhaps innocently) is one thing. A media organization uncritically promoting this hysteria is quite another. This is reckless journalism. Nothing happened, and in all likelihood, nothing would have happened.

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China Trade War Is Back: Trump To Slap Beijing With Tariffs On Friday As Negotiations Collapse

The ceasefire in the US-China trade war is over.

As Fox News reported late on Tuesday, Trump rejected Beijing’s trade negotiation olive branch, saying that the proposed $80BN in agriculture purchase commitment from China was insufficient, and resetting bilateral trade talks back to square one.

In related news, Politico reports that Trump is expected to impose tariffs on Chinese goods as soon as Friday or next week, “a move that is sure to further inflame tensions and spark almost immediate retaliation from Beijing.” As discussed previously, on Friday the administration is planning to publish a final list of Chinese goods that will take the hit.

Trump’s China trade advisor, Peter Navarro, said on Tuesday that the president is planning to impose tariffs on a “subset” of Chinese imports that the administration included in an original list of roughly $50 billion in targeted products in April. Navarro’s comments suggest the Trump administration will move forward with tariffs but that it could impose penalties on a smaller group of products than those included on the original list of about 1,300.

After the public had a chance to weigh in, the original list is expected to remain largely intact but will be slightly reduced from what was first proposed, according to two sources briefed on the plans.

According to the report, Trump’s aggressive stance calls into question the future of talks between the two trade powers, which took a friendly turn in the weeks leading up to the North Korea summit as the U.S. sought China’s help, but have since deteriorated again.

To an extent that is understandable: China was seen as playing a key role in getting North Korean leader Kim Jong Un to the table with Trump, who has consistently linked his trade demands to Beijing’s willingness to help on North Korea; now that the summit is over and the wheels are turning, Trump no longer needs China’s aid.

And, sure enough, after the summit, while Trump defended his personal friendship with Chinese President Xi Jinping and said he would call the Chinese leader, he also said Beijing has not done an adequate job closing its border to trade with North Korea in recent months, which Trump seemed to blame for rising U.S.-China trade tensions.

“Which is a shame. But I have to do it. I have no choice. For our country, I have to do it,” Trump said at a press conference in Singapore, possibly referring to tariffs.

“I came away thinking that he was suggesting in the press conference in Singapore that although Xi Jinping was a close friend [and] that he’d provided help on North Korea, that the president had no choice but to turn up the heat on China,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies.

That’s precisely what is happening, but that’s not all.

As we reported yesterday, Congress is aggressively pushing back against the White House recently backing off on the ZTE seven-year ban, further complicating efforts to reach a deal with China. The Senate is expected to consider must-pass defense legislation this week that includes an amendment effectively rejecting the decision to roll back sanctions on ZTE.

In fact, as the WSJ reports, the ZTE deal “appeared to teeter on the brink of demise” as senior Republican senators signaled that President Donald Trump was unlikely to block a congressional effort to derail a deal he brokered to resuscitate the Chinese telecommunications giant.

According to the report, the president hasn’t issued tweets urging Republicans to stand down, and lawmakers detect no backlash building within Congress against the move to unravel the White House agreement.

“I don’t think the president cares about ZTE,” Sen. Bob Corker (R., Tenn.) told reporters. “Someone told me that he gave [GOP lawmakers] a wink and a nod and told them he didn’t care. I don’t know if that’s true or not, but I think he did what he did for the Chinese leader but he doesn’t really care what Congress does.”

Meanwhile, as we noted last night, ZTE shares resumed trading in Hong Kong on Wednesday morning after a halt of almost two months, plunging over 40% in the opening minutes — their biggest drop in history, wiping out nearly $8 billion in market value — as investors rushed to distance themselves from the troubled company.

Trump had spent the previous week in closed-door meetings trying to sell Senate Republicans on the deal, which coincided with his effort to build goodwill with Chinese President Xi Jinping ahead of this week’s talks with North Korea about denuclearization. And in a briefing late on Monday with GOP senators, Commerce Secretary Wilbur Ross again tried to get lawmakers to drop their resistance to the ZTE agreement.

However, now that Trump had his moment in the history books with his North Korea summit – whether it is successful or not – expect the old, trade belligerent Trump to make a triumphal return, and the trade war with China to return front and center in the next few days.

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Producer Prices Surge At Fastest Rate Since 2011

After yesterday’s surge to 7 year highs in consumer price inflation had zero impact on bonds or stocks, a very different regime than just a few months ago, one wonders what today’s producer price inflation print will do.

 

After slowing in April to +2.6% YoY, PPI surged in May by 3.1% YoY – the biggest price rise since Dec 2011…

Energy prices dominated the increase – rising 4.6% YoY.

Final demand goods details:

Half of the advance in the index for final demand goods is attributable to a 9.8-percent increase in gasoline prices. The indexes for jet fuel, fresh and dry vegetables, diesel fuel, beef and veal, and light motor trucks also moved higher. In contrast, prices for chicken eggs fell 31.2 percent. The indexes for residential natural gas and for plastic resins and materials also decreased.

Final demands Services details:

One-third of the May advance in prices for final demand services is attributable to a 1.5-percent rise in margins for machinery, equipment, parts, and supplies wholesaling. The indexes for chemicals and allied products wholesaling; outpatient care (partial); apparel, footwear, and accessories retailing; food retailing; and truck transportation of freight also moved higher. Conversely, prices  for guestroom rental fell 4.4 percent. The indexes for fuels and lubricants retailing and for hospital inpatient care also moved lower.

Core PPI also rebounded from April, rising at 2.6% YoY.

Just like yesterday’s CPI, bond yields are underwhelmed…

2Y Yields are up a shocking 1bps…

50bps rate-hike anyone?

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