Tag Archives: Biden

Current Events, Recent Posts

Train Wreck in Slow Motion.

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I know some of you are probably tired of my posting these sort of comments as they are somewhat hard to understand and follow without some education in that confusing world of Economics; however, I love it. Read carefully and try to get a grasp of what he is saying and showing you in the charts. Chart #7 is an eye opener of me. As he says, we are about to watch a train wreck in slow motion. I agree with his advice, keeping that money in your bank or under your mattress is not the way to get through this perfect storm we are about to experience. Hard assets will always win out.

Good luck Brothers and Sisters.

Calafia Beach Pundit
Monetary policy is a slow-motion train wreck

Posted: 13 Oct 2021 06:32 PM PDT

There is no shortage of things to worry about. 

That’s a phrase I have used several times over the past decade. I used it as a foil to argue that since the market was quite cautious (and nervous), then a surprise downturn or selloff wasn’t a serious risk. Recessions usually happen when nearly everyone is feeling optimistic. Today there again is no shortage of things to worry about, and the market is within inches of its all-time high. Most disturbing, however, is that neither the Fed nor the administration nor Congress nor the bond market are very worried about inflation. Inflation and all its nasty consequences are, arguably, big things to worry about today.

Fed policy, as laid out in today’s FOMC minutes, is amazingly blasé about the risks of higher inflation. The Fed currently plans to begin “tapering” its purchases of Treasuries and mortgages sometime next month, and to finish tapering by mid-2022. That’s not a tightening of monetary policy; it’s only making policy less accommodative over a prolonged period. Actual tightening—which would consist of draining reserves (i.e., selling bonds) and/or raising the interest rate it pays on reserves (i.e., higher short-term interest rates)—won’t begin until sometime late next year.

The market has apparently agreed that this is a sensible course of action. Inflation expectations embedded in bond prices are somewhat high, but still a relatively tame 2.75% per year (average) over the next 5 years. The bond market is currently pricing in one or two 25 bps “tightenings” by the end of next year (i.e., short-term interest rates of roughly 0.4% to 0.5%), and a 1.5% fed funds rate 3 years from now. By any standard, that would be a supremely gradual pace of monetary tightening. But at a time when inflation is at levels not seen in over 30 years?

This is almost certainly an unsustainable situation. The Fed and the bond market are almost certainly underestimating the risks of higher-than-expected inflation.

How do I know this? It’s all about incentives. Today, the incentives to borrow are huge. Short-term interest rates are below the current level of inflation and will likely remain so for at least the next year. (Even 30-yr fixed rate mortgages are lower than the rate of inflation.) Smart investors and consumers won’t find it hard to arbitrage these variables. In fact, the process is already underway. You simply borrow money and buy anything that is a productive asset and which also has roots in the nominal economy (e.g., commodities, equities, farms, factories, cars). Leverage is your friend and ally in a high-inflation, low-interest-rate world.

How does one place a bet on an asset (in this case the dollar) that is expected to decline in value (because of inflation eroding its purchasing power)? You sell it if you own it, or you sell it short (you borrow it and then sell it). You buy it back when inflation settles back down and/or interest rates rise to a level that is greater than inflation. One way to “short” the dollar is to simply borrow dollars. And a common way to do that is to get a loan from a bank. And when the bank lends you money, the bank can actually create the money it lends you, which in turn expands the money supply. Banks are uniquely able to create money, provided they have sufficient reserves on hand to collateralize their deposits. Since the banking system currently has upwards of $3 trillion in “excess” reserves, thanks to the Fed’s gargantuan purchases of notes and bonds, banks have an almost unlimited ability to increase their lending.

So it’s not surprising that the M2 money supply has expanded at an unprecedented rate over the past 18 months, a time in which the Fed has bought almost $3 trillion of notes and bonds and bank deposits have swelled by some $5 trillion. And it’s also not surprising that in the past six months consumer price inflation has posted a 6-7% annualized rate of growth—a rate last seen in late 1990.

As for Biden, his approval rating is now down to an abysmal 38%. His administration has committed a series of blunders, most notably with the Afghanistan withdrawal. His top priority now is to pass two bills chock full of new social spending and new taxes which he preposterously claims will cost the economy “zero.” Meanwhile, inflation has risen to multi-decade highs, yet both the administration and the Fed keep insisting it’s just transitory. Things will almost certainly get worse if trillions of new taxes and spending, additional layers of bureaucracy, and hundreds of billions of dollars of new handouts and subsidies get lavished on the middle class. My good friend and talented artist Nuni Cademartori sums it up in this cartoon:

As the battle in Congress over Biden’s “Build Back Better” agenda rages, I would urge everyone who thinks this agenda will actually help the economy grow and prosper to read the recently released study by the Texas Public Policy Foundation in collaboration with my good friend, Steve Moore of the Committee to Unleash Prosperity.

The key findings:

• The cost of the Biden Build Back Better plan spread across two bills will reach $6.2 trillion over the next decade.

• The higher tax rates on corporate income, small business income, capital gains, and so on will raise the cost of capital and reduce national investment and the capital stock.

• Compared to baseline growth, the negative impact of these taxes over the next decade will result in 5.3 million fewer jobs, $3.7 trillion less in GDP, $1.2 trillion less in income, and $4.5 trillion in new debt.

While I’m on the subject of Steve Moore, whom I’ve known since the mid-1980s, I will once again recommend you read and subscribe to the Committee to Unleash Prosperity’s free daily newsletter. I read it every day, as do more than 100,000 citizens and Washington policymakers. (One of his recent issues featured Nuni’s cartoon, and another featured some of my recent charts.)

In the study mentioned above you will find details on a plethora of Biden’s tax proposals (e.g., a 12.5% payroll tax on all income over $400K, a reduction in the estate tax exemption of $8 million, and an increase in the top marginal tax rate to 65%) and their likely negative impact on the economy and employment. It’s frightening to think that the people who came up with these proposals apparently believe that the overall impact of BBB will be stimulative. Have they no common sense? Here’s a fundamental supply-side truth: when you tax productive activity and success more, you will get less of it. And when the government borrows trillions only to redistribute the money to favored groups and industries, you get a weaker, less efficient economy. And you also risk boosting already-high inflation.

I’ll wrap things up with some updated charts and commentary:

Chart #1

Nothing illustrates better the supply-chain bottlenecks that currently plague the global economy than Chart #1. Used car prices have literally skyrocketed; in inflation-adjusted terms, used car prices are higher than they have ever been. In nominal terms they are up over 50% since March ’20.

Chart #2

Chart #2 shows how almost half of small businesses in the US report paying higher prices. The last time this occurred was in the 1970s. It’s hard to escape a higher inflation Deja vu conclusion.

Chart #3

 

As Chart #3 shows, bank reserves are very near their all-time high. The vast majority of these reserves are “excess” reserves, meaning they are not required to collateralize bank deposits. Banks thus have enough reserves on hand to collateralize an ungodly increase in deposits via new lending (i.e, money creation). If the Fed doesn’t increase the interest rate it pays on these reserves by enough to make them more attractive, on a risk-adjusted basis, than the interest rate banks can expect to earn on new lending, bank lending will surely continue to expand, and that will fuel a prolonged expansion of the money supply and ever-higher inflation.

Chart #4

 

Chart #4 shows the 6-mo. annualized rate of growth of the CPI (including the ex-energy version). I think this is a fair way to measure what’s happening now, since we are well past all the distortions of last year and the turmoil earlier this year. Inflation by this measure hasn’t been this high since late 1990.

Chart #5

Chart #5 compares the year over year growth in the CPI (I’m being conservative with this) to the level of 5-yr Treasury yields. Yields haven’t been this low relative to inflation since the 1970s. Recall what happened back then: millions of households made a fortune borrowing money at fixed rates and buying houses. Negative real interest rates cannot be sustained for long, mainly because of the incentives they create to borrow and buy.

Chart #6

Chart #6 is an updated version of the one featured in Steve Moore’s newsletter. It’s important to note that the multi-decade trend rate of M2 growth is 6-7% per year. This has been blown away in the past 18 months. If the public tires of holding $3.8 trillion more in bank deposits than they normally would at this time, that’s a tsunami of money that could float higher prices for nearly everything in the next year or so. It’s also worth noting that M2 has been growing at a 10-11% annualized rate so far this year.

What worries me the most right now is how this all sorts out. The Fed seems determined to avoid even the semblance of tightening for the next 12 months. Yet if inflation turns out to not be transitory as they currently expect, how long will it be before policy becomes tight enough to threaten the economy’s health?

Chart #7 

Chart #7 provides some historical context which may help answer that question. Note that every recession on this chart (shaded bars), with the exception of the last, was preceded by 1) a flat or negatively-sloped Treasury yield curve, and 2) a very high real Fed funds rate. Both of those conditions confirm the existence of very tight monetary policy that was intended to keep inflation pressures at bay. Neither condition is in place today, however, which strongly suggests that monetary policy poses no threat to the economy at this time.

Past Fed tightenings, however, were different from what a tightening would look like today. To really tighten policy, the Fed would have to 1) start raising the interest rate it pays on reserves, and 2) start draining reserves by selling bonds. It might take years to get rid of all the excess reserves, however, and no one knows for sure how the economy will respond to higher short-term rates in the presence of abundant reserves—that’s never happened before. In the past, the Fed simply drained reserves until they were in such short supply that the banks were willing to pay ever-higher interest rates in order to acquire enough of them to collateralize their deposits. A scarcity of reserves led to a liquidity shortage, and high real borrowing costs led to bankruptcies and weak investment. Eventually, economic growth ceased, and the inflation cycle was broken.

The dilemma for investors: we might be years away from a return to these conditions, so selling risky assets right now might be premature. And, by the way, holding cash is a guaranteed way to lose money. But how long can you wait, knowing that another economic collapse looms on the horizon?

In the meantime, the prospects for Biden’s Build Back Better lollapaloosa are declining by the day, thankfully, and the spreading disarray in Washington only makes that more likely. I’m willing to bet that if any of his bills survive, it will be in greatly reduced form, and thus much less damaging to the economy. Just letting the economy sort things out on its own would be a great relief to everyone, in my view.

Nobody said investing was easy. There are a lot of things to worry about these days. But I wouldn’t panic just yet. The next year or so might be likened to watching a train wreck in slow motion.

Rik is a great friend and brother Marine with whom I served several times. Thanks Rik, I love this stuff. Give him a call .


 

 

Originally posted 2021-10-17 16:27:42.

Recent Posts

Parents Beware!

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From one of the few newspapers that tell it like it is — the Wall Street Journal. Make no mistake about it parents and grandparents, your children are at risk

Merrick Garland Has a List, and You’re Probably on It

By Gerard Baker

Merrick Garland’s got a little list.

The attorney general is compiling a steadily lengthening register of “society offenders who might well be underground and who never would be missed,” as Ko-Ko, the hypervigilant lord high executioner, sings in Gilbert and Sullivan’s “The Mikado.”

Mr. Garland’s list of society offenders is compendious. At the top are right-wing extremists who’ve been officially designated the greatest domestic threat to U.S. security, but whose ranks seem, in the eyes of the nation’s top lawyer, to include some less obviously malevolent characters, including perhaps anyone who protested the results of the 2020 election. Then there are police departments not compliant with Biden administration law-enforcement dicta, Republican-run states seeking to regularize their voting laws after last year’s pandemic-palooza of an electoral process, and state legislatures that pass strict pro-life legislation.

They’d none of them be missed.

Oddly, the list doesn’t seem to extend to the hundreds of thousands of people who have crossed the southern border so far this year and are now presumably at large somewhere in the U.S. without a legal right to be in the country. Nor to those benevolent folk who have reduced several of the nation’s urban centers to crime-infested wastelands.

Which is presumably why the latest names on his roll are those parents who have had the temerity to challenge local school boards about the mandates they are imposing on their pandemic-ready classes and what the children are learning.

That wasn’t how the attorney general presented it when he announced the news. Citing a “disturbing trend” in harassment, intimidation and threats of violence against school-board members, teachers and other school employees, he declared that he was directing the Federal Bureau of Investigation to work with local and state law enforcement to develop “strategies” for dealing with the problem.

The announcement looked as though it had been carefully coordinated with the National School Boards Association (NSBA), which had asked the Biden administration to do exactly this.

Decent people everywhere acknowledge that violence is intolerable—whether perpetrated by Black Lives Matter agitators torching buildings, Trump supporters smashing federal property, or parents who throw projectiles at school board members.

But the letter from the NSBA contained barely any evidence of actual violence. It cited mostly antisocial behavior and threats, and some of the offenses referenced—such as a parent making a mock Nazi salute to a school board—are, however offensive, constitutionally protected speech.

And, as has been widely noted, when acts of violence occur, they can and have been dealt with by local or state law enforcement. There is no federal interest in any of these infractions.

All this merely underscores what the real objective of the attorney general’s action was—and we don’t need to engage in speculation because it was recently spelled out to us by another leading member of President Biden’s party, Terry McAuliffe, the Democratic candidate for governor of Virginia.

In a rare moment of honesty from a politician, Mr. McAuliffe made clear, in a television debate with Republican Glenn Youngkin, the Democrats’ conception of the role that parents should have in their children’s education: none whatever.

“I don’t think parents should be telling schools what they should teach.”

Aside from the jaw-dropping disdain for families, Mr. McAuliffe’s prescription is at odds with Article 26.3 of the United Nations’ Universal Declaration of Human Rights, the sort of grand multilateral pronouncement the Democrats usually fetishize, which states: “Parents have a prior right to choose the kind of education that shall be given to their children.”

This flagrant attempt to intimidate parents into handing their children over to the mercies of the state is as sinister as anything the modern progressives who now control the Democratic Party have done.

The message is clear, and it has been the character of education in totalitarianism systems through history: These are not your children; they are wards of the state, and the state (in this case through the teachers unions that fund the Democratic Party) will determine what they learn and how.

Democrats like Mr. McAuliffe insist that pernicious racial doctrines teaching the ubiquity of white supremacism and the inherent racism of American society and encourage racial segregation aren’t actually taught in schools. But this is laughable. The same Democrats have spent the last year insisting on racial “equity” as the defining objective of their social program. Why would they leave it out of the schools they mostly control?

Mr. Garland’s brazen attempt to intimidate will likely backfire as more parents—including many who aren’t especially conservative—become alarmed by what they see and hear in their children’s schools. By placing them on his little list, he may have done us all a favor.

Originally posted 2021-10-12 15:01:23.

Current Events, Recent Posts

China VS U.S.

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Received the following from a highly resected Brother Marine referred to as “Mustang,” which many of you know what that moniker means. Anyway, I don’t watch TV except Netflix and Amazon Prime. Would enjoyed watching this episode however. Enjoy and thank you Mustang, it is definitely blog worthy! Really there isn’t much to enjoy as it is all so true and scary as hell.

 

“Real-Time” host Bill Maher closed his show Friday night by sounding the alarm on China’s growing dominance over the United States. Why are Americans sleeping?

 

We aren’t sleeping, we are spending our time teaching and assisting little boys how to become little girls! And, if we aren’t busy doing that we have the Sec of Defense, responding to an order from the ‘commander’ in chief, designing stylish new uniforms for pregnant ‘soldiers’.

 

“You’re not going to win the battle for the 21st century if you are such silly people. And Americans are all silly people,” Maher began the monologue, alluding to a “Lawrence of Arabia” quote.

 

Do you know who doesn’t care that there’s a stereotype of a Chinese man in a Dr. Seuss book? China,” he said. “All 1.4 billion of them couldn’t give a crouching tiger flying f— because they’re not silly people. If anything, they are as serious as a prison fight.”

 

Maher acknowledged that China does “bad stuff” from the concentration camps of Uyghur Muslims to its treatment of Hong Kong. But he stressed, “There’s got to be something between an authoritarian government that tells everyone what to do and a representative government that can’t do anything at all.”

 

“In two generations, China has built 500 entire cities from scratch, moved the majority of their huge population from poverty to the middle class, and mostly cornered the market in 5G and pharmaceuticals. Oh, and they bought Africa,” Maher said, pointing to China’s global Silk Road infrastructure initiative.

 

He continued: “In China alone, they have 40,000 kilometers of high-speed rail. America has none. We’ve been having Infrastructure Week every week since 2009 but we never do anything. Half the country is having a never-ending woke competition deciding whether Mr. Potato Head has a dick and the other half believes we have to stop the lizard people because they’re eating babies. We are such silly people.

 

“Nothing ever moves in this impacted colon of a country. We see a problem and we ignore it, lie about it, fight about it with each other, endlessly litigate it, sunset clause it, kick it down the road, and then write a bill where a half-assed solution doesn’t kick in for 10 years,” Maher explained. Then the half-assed bill is forgotten.

 

“China sees a problem and they fix it. They build a dam. We debate what to rename it.”

 

The HBO star cited how it took “ten years” for a bus line in San Francisco to pass its environmental review and how it took “16 years” to build the Big Dig tunnel in Boston, comparing that to a 57-story skyscraper that China constructed in only “19 days” and Beijing’s Sanyuan Bridge, which was demolished and rebuilt in “43 hours.”

 

“We binge-watch, they binge-build. When COVID hit Wuhan, the city built a quarantine center with 4,000 rooms in 10 days and they barely had to use it because they quickly arrested the rest of the disease,” Maher said. “They were back to throwing raves in swimming pools while we were stuck at home surfing the dark web for black market Charmin. We’re not losing to China, we LOST. The returns just haven’t all come in yet. They’ve made robots that check a kid’s temperature and got their asses back in school. Most of our kids are still pretending to take Zoom classes while they watch TikTok and their brain cells fully commit ritual suicide.” Our teachers unions are finding every single way to keep themselves on the payroll, but keep students out of the classrooms. WAKE UP AMERICA! That means ALL of YOU.

 

Maher then blasted New York City Mayor Bill de Blasio, accusing him of degrading school standards by eliminating merit and substituting a lottery system for admittance to schools for advanced learners. Our country is going down the toilet.

 

“Do you think China’s doing that, letting political correctness get in the way of nurturing their best and brightest?” Maher continued. “Do you think Chinese colleges and universities are offering courses in ‘The Philosophy of Star Trek, ‘The Sociology of Seinfeld,’ and ‘Surviving the Coming Zombie Apocalypse’? Can this be real? Well, let me tell you, China is real. And they are eating our lunch. And believe me, in an hour, they’ll be hungry again.”

 

A somber message, isn’t it? But, where is Maher wrong? I guess the good news is that unlike the Chinese our young people have free text messaging and iPhone games.

Originally posted 2021-09-29 15:16:37.

Current Events

Beware of Halloween Spooks

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Hello followers. I hope this missive finds you and yours in the best of health and staying safe. My bride and I returned from our getaway to St. Lucia very early this morning. Truly a relaxing place for the late twenty to late thirty crowd. For the early eighty crowd, not so relaxing; glad I purposely did not bring my Hearing Aids. Not quite my genre of music; in fact, it was unbearable. However, the place is so large and dissected in such a way we found a quiet pool away from all that. Anyway, we both had a great time, lots of fun in the sun.

I arrived home to find an excellent treatise by Greg on the current state of the economy in this once vibrant and glowing country of sane people. And as usual, I totally concur with all he states. It is coming folks. For those living off their 401K’s beware!! I and most who think like me have been selling for the past several weeks, and I shall continue during the ups and downs of Wall Street. I shall also do some selective buying, but inflationary companies, which are many, will not be on my sought-after lists.

The highlights in red within Greg’s treatise are mine.

October Instincts

By: G. Maresca

The Executive Director of JPMorgan Chase admitted that the stock market’s “biggest nightmare periods have tended to be October. You go back to obviously the crash in 1929, but the 1987 crash, and in 1989… was in October. You tend to have these October moments.”

Financially most are feeling pretty good as brokerage accounts never looked healthier and home prices are over-the-top. Over the past year, the S&P 500 has closed at new, all-time highs over 50 times and in so doing has created the illusion that the market only rises.

This results in taking more chances when investing.

The K-shaped economy and booming stock market underscore that Main Street and Wall Street are at a major disconnect. Many dismiss the growing rate of inflation, the unprecedented intervention by the Federal Reserve’s nonstop money-printing and increased debt believing that the dollar today is worth the same as it was last year.

It’s not.

The duality of low interest rates and those stimulus payouts have devalued the dollar. Thanks to inflation and time, savings in fixed investments like CDs, bank accounts and money markets lose purchasing power. With yields registering next to nothing, where are investors expected to put their money?

As a result, savers seek more risk in order to obtain better returns leading to a stock market that is cooking and overvalued. Increasing stock prices coupled with a mushrooming federal debt is a brick road paved over with inflation.  As the Fed continues easy-money policies, the market will continue higher as the infusion of cheap dollars rules the day.

Most bankers, brokers, and politicians understand that these bouts with inflation are what economists call: “The Money Illusion.” It is when one’s wealth is measured in how many dollars they possess, rather than its purchasing power.

Among investors, the Money Illusion breeds risk taking and heightened speculation. It’s like watching a skilled magician work his stagecraft. It looks and appears amazing and impossible, but it is not at all what it seems.

Low interest rates did, in fact, rescue the market. The Fed slashed short-term interest rates to near zero at the onset of the COVID-19 debacle and bought large purchases of Treasury and mortgage bonds making dollars discounted. In so doing, The Fed propped up not only the bond markets, but stocks, too.

Many are in denial about what is truly happening throughout our financial system. To paraphrase writer Upton Sinclair, it’s difficult to get someone to look when their getting paid depends on not looking.

Adding to the illusion is that 40% of all U.S. currency in circulation has been printed since March 2020. Few comprehend the effects of so many trillions in our financial system. The Case-Shiller Index which measures home prices has risen 18.6% for the year, up from a record 16.8% the month before. The index is the proverbial rat in the financial mine that brings with it a healthy dose of inflation.

Financial storm clouds are forming as the economy experiences labor shortages, supply chain disruptions, rising prices, and increasing inflation. With too many dollars chasing too few assets, the good times won’t last forever.

One out of every four companies are on life support because of low interest rates. With rates near zero, and with inflation rising, The Fed cannot afford to keep them low forever.

Bankruptcies are on the horizon.

The federal debt continues to grow as trillions crowd the government’s balance sheet with the debt literally growing by the second. Inflation does to a degree keep the debt somewhat manageable. However, as inflation rises, Social Security, and other assorted fixed incomes like pensions will see their buying power shrink even further.

Eventually, a significant tax increase will hit all Americans hard and below the belt – regardless of income.

Rising stock prices are great, but when easy money begins to create social, political, and economic turmoil, something is seriously amiss. A White House which believes that global warming, systemic racism and COVID are our greatest threats, does not possess the foresight and wisdom to comprehend what is economically occurring.

The laws of economics cannot be repealed, no matter what one’s wishful thinking may be.

As October looms, consider this a heads-up.

Postscript: Beware of the ghouls of October, they are coming, meanwhile many Americans keep chasing those soon to be negligent goods and, to paraphrase Mack the Knife , “Spending like a Sailor.”

Originally posted 2021-09-20 14:39:12.

Current Events

Joe Dumbkirk

7 Comments

Tomorrow is a day that as Churchill stated many more years ago, “A day that live in infamy.’ For those who who were alive and coherent enough to remember that day, it was the most tragic incident of my lifetime. I was a mere year old when Pearl Harbour happened; therefore, this one is significant for me. I know, as I am sure you do as well, exactly where I was and what I was doing when it happened. I was mending fences on my ranch in Montana when my wife came streaming looking for me May we never forget that day and WHO it was that caused it.

Here’s another good one from my frequent contributor and friend Greg Maresca, a noted historian who only write facts!

By Greg Maresca

It was theatrical in its design and a Shakespearean tragedy in its unfolding. As the 20th anniversary of 9/11 approached, President Biden desperately desired a historical and symbolic end to the nation’s longest war.

Biden’s vision turned out to be nothing short of a ‘70s era U.S. military and intelligence debacle taken to an unprecedented scale paid for in American blood, fortitude and treasure.

Where are the resignations of all the generals and admirals who argued against capitulation?

Robert Gates, the respected former secretary of defense under both George W. Bush and Barack Obama, wrote in his memoir that Biden had been wrong on “nearly every major foreign policy and national security issue over the past four decades.”

Some things never change.

Biden’s foreign policy rewards our enemies and punishes our allies.

It was in June as the Taliban began their march to Kabul that all U.S. embassies throughout the world celebrated sodomy via “Gay Pride Month,” as part of the Biden’s Administration’s foreign policy.

American exceptionalism was replaced with American perversion.

As Great Britain’s Neville Chamberlain is remembered for appeasement in the Nazi takeover of Sudetenland, Biden will be remembered for leaving Afghanistan to the Taliban, while abandoning thousands of America’s allies and rebooting Islamist fundamentalists the world over.

Allowing the Taliban to dictate the terms of withdrawal was reprehensible and irresponsible. As such, it raised the threat of terrorism to levels it had not witnessed in years.

Biden is a shoo-in for the Nobel Appeasement Prize for his military retreat – Dumbkirk.

Biden bequeathed the Taliban a reported $85 billion in military hardware that will allow them to wage war and terror for years. Moreover, Bagram Air Base is now China’s de facto world class central Asian integrated air headquarters courtesy of the American taxpayer. Likewise, Afghanistan is rich in rare earth minerals that China will certainly exploit and profit from.

Biden’s surrender plays daily throughout our fruited plain. Portland, Oregon is lawless permitting Antifa, and the Proud Boys to wage battle without consequences. In Los Angeles, Seattle, and San Francisco homeless bivouacs and unbridled crime have turned these cities into dystopian, democrat nightmares. In Chicago, gang warfare runs rampant with shootings far worse than what our military experienced in Afghanistan especially over the last 18 months going without casualties.

What Biden has succeeded in doing is uniting nearly two-thirds of Americans — all of whom believe his flight from Afghanistan was a colossal disaster.  It is the one-third who believe Biden is actually doing a good job that is most concerning.

In a successful military and intelligence campaign in Afghanistan, we had 2,500 troops with a strategic presence in central Asia’s foremost terrorist breeding grounds. Continued funding certainly could have been found in the series of COVID relief packages passed by Congress, of which less than half went to anything remotely COVID.

For over 70 years, we have maintained thousands of troops in South Korea, and since the end of World War II we have had troops in Japan and Germany. Maintaining a contingent of troops in Afghanistan that have been successful in deterring terrorism at home you think would be a given.

The Russians, Chinese, Iranians and the North Koreans will certainly test our defenses especially in cyberspace.

Come 9/11 our enemies will be dancing in the streets as our southern border is wide open and we are lectured about how vaccinations, global warming, and systemic racism are the most pressing problems facing the nation.

Perhaps Biden should send an army of social workers and psychologists into Afghanistan who could reason with the Taliban and show them the errors of their ways. Instructing them how they were wrongfully utilizing microaggression, ignorant of Facebook’s 58 genders, and the wonders and marvels of applied critical race theory.

Such a pathetic ending in Afghanistan was most unworthy of this 20-year epic struggle.

It was not a departure but an abandonment.

Could there have been any less planning and foresight?

Whatever possessed Biden to believe that the 20th anniversary of 9/11 was the right time for such a pullout?

 

 

 

 

 

 

The ensuing chaos at Kabul’s airport with people falling to their deaths from American Air Force planes is seared into the Biden legacy.

Postscript: This will be my last post for a little over a week. My bride and I will depart on the 11th, Saturday, on a LONG overdue Honeymoon (35 years). We never had one as I was in the middle of SOC workups , then deployed for six months. She understood completely as all Marine wives do. So we are going to some faraway place and hideout for a week. No, I won’t tell you until we return. No phones, no internet, and no TV. Swim, snorkel, scuba dive, sail board, relax, refresh, drink umbrella drinks under a canopy on the beach, and have a specially prepared dinner for us on our day — 13 September — on the beach under the same personal umbrella. 

I wish you all the best, stay safe, keep up the pressure on you know who and all the holders of his many puppet strings. I hope he hasn’t destroyed America so we have a place to which to return. Semper Fi; Jim and my bride of thirty-five years.

 

 

Originally posted 2021-09-10 13:38:27.