The G7 plan to create another economic sanction against Russia by capping the price anyone could pay for Russian oil has a serious downside.  If Russia slows down the export of oil, global oil prices will jump dramatically.   That policy outcome would mean a massive increase in the price of gasoline for U.S. consumers.

Because the consequences are horrible, that’s precisely the reason Joe Biden might push to have the Russian price cap.  Every policy Joe Biden has historically supported, has been the exact opposite of what should have been done.  Biden has a profound and innate ability to screw up anything.

[Bloomberg] – Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude-output cuts, JPMorgan Chase & Co. analysts warned.

The Group of Seven nations are hammering out a complicated mechanism to cap the price fetched by Russian oil in a bid to tighten the screws on Vladimir Putin’s war machine in Ukraine. But given Moscow’s robust fiscal position, the nation can afford to slash daily crude production by 5 million barrels without excessively damaging the economy, JPMorgan analysts including Natasha Kaneva wrote in a note to clients.

For much of the rest of the world, however, the results could be disastrous. A 3 million-barrel cut to daily supplies would push benchmark London crude prices to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.

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Much has been made of comments by Federal Reserve Chairman Jerome Powell in his brief explanation of what the Fed got wrong.  Last week Powell made comments during a European Central Bank forum on bank policy, implying the absence of unvaccinated workers returning to the labor force is part of the US inflation problem.

Powell’s comments seem to align with the government vaccine mandate position which ignored the rights of the worker. Considering the responsibility of the Fed to anticipate price and labor issues, Powell’s sense of credulity toward those workers who dropped out of the labor force rather than inject an untested vaccine into their body is quite remarkable.  Inartful and arrogant are soft terms for his commentary.

However, there’s a bigger “tell” in the segment of what the Fed got wrong, when you listen to Powell talk about the supply side issues and how the Fed Reserve had no model to predict the mandated lockdowns, economic activity stoppages and consequences.   Notice how Powell completely dismisses the structural energy policy, the Build Back Better agenda, that lies at the heart of the current supply side inflation issue.  Video Prompted to 01:03:34, WATCH:

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Throughout the discussion the primary focus to control inflation is reliant on a demand side cause.   The goal to reduce demand is seen as a way to mitigate and reduce inflation.  Thus, this worldview, as mistaken as it was/is, explains the justification for why the Fed waited to increase interest rates.  They never saw the radical energy policy as a structural driver of supply side inflation.

According to Powell, they thought the supply side issues would moderate quickly, without giving any consideration at all to how a radically new energy policy would embed.  He just ignores the issue completely; again, pretending not to know.  But perhaps it’s actually worse.  Perhaps he really doesn’t see a radical new energy policy as a driving force behind current inflation.  If that’s true, and he genuinely does not see it, then Fed policy in the future is going to make the recession much worse.

If you ignore massive energy price impacts, the FED will keep interest rates high despite demand dropping, and then eventually get to a place where demand has dropped so low the recession is deep, while turning toward each other and asking why are prices still so high?

Keep that disconnect in mind.

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As we gather with family and friends for this Independence Day celebration; as we still hold the memories of how government responded to the COVID-19 pandemic by dispatching liberty; we remind ourselves that freedom is a valuable and precious gift worth fighting for.

There are many current anxieties, frustrations and feelings of despondency as our July 4th, 2022, celebrations take place. However, we would be well served to remember that we alone control our responses to events around us.

We can choose to put aside all of the challenges and issues that seem beyond our control, and we can gather in joyful fellowship with our family and friends to celebrate the reason our forefather’s defeated tyranny.

We Americans come from solid stock.

We carry in our DNA a fortitude of individual identity that is not dependent on government for affirmation or permission.  We are the beneficiaries of those who believed in stubborn independence.  What takes place at your picnic, gathering or assembly of fellowship is your independent choice.

I am reminded of an article written more than two decades ago, that still rings true to this day.

“An American credo, By Don Feder”:

I am an American. I was conceived at Plymouth, born in Lexington and Concord, and reached maturity at Philadelphia.

I went through the fires of Shiloh, Gualdacanal, the Chosin Resovoir, Khe Sanh and a thousand other battlefields, and emerged rededicated to the ideals on which America was founded.

I am an American. Ever ready to defend my liberty and independence, to make any sacrifice and bear any burden – still, I seek no quarrel.

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If you look beyond the condescending, sanctimonious and unintelligent questioning and pantomime from CBS News Margaret Brennan, there are some very interesting aspects outlined by German Chancellor Olaf Scholz.  [Transcript Here] I was looking for how CBS would inject the pending global food shortage into the interview, and what narrative angle they would use.  The coordinated media political talking point, ‘Russia starving the world‘, comes up in the last third of the interview.

Germany is the largest and most heavily industrialized economy in the European Union (EU). As a result, Germany makes most of the decisions about how the EU operates. Former German Chancellor Angela Merkel always played the role of supporting NATO; however, her approach to government was one of the most closed, controlling and nationalist hypocrisies within the European Union.  If it was in Germany’s interest it was done. If it was not directly beneficial to Germany, it was never done.

Merkel’s replacement, Olaf Scholz, is not that different from his predecessor in regard to the economics of nationalism, the predominant view for any German leader. However, Scholz is more of a collaborator, an outward looking Chancellor; seemingly more globally and communally minded than Merkel. Scholz is more accepting of Biden (USA) influence than Angela Merkel was.  Scholz is also spending more on German military than Merkel would ever consider.

In this interview, Scholz outlines the conflict in Ukraine while overlaying his perspective of Russian President Vladimir Putin as an outcome of their discussions.  WATCH:

[Transcript] – MARGARET BRENNAN: Mr. Chancellor, thank you so much for making time in your busy schedule for us.

OLAF SCHOLZ: Good morning.

MARGARET BRENNAN: So I read your biographer says you don’t often answer directly, but I’m going to try my best today. You speak with Vladimir Putin. Do you think that Russia is a terrorist state as president Zelenskyy says?

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In an effort to keep the Daily Open Thread a little more open topic we are going to start a new daily thread for “Presidential Politics”. Please use this thread to post anything relating to the JoeBama Administration and Presidency.

“This is no small thing, to restore a republic after it has fallen into corruption. I have studied history for years and I cannot recall it ever happening. It may be that our task is impossible. Yet, if we do not try then how will we know it can’t be done? And if we do not try, it most certainly won’t be done. The Founders’ Republic, and the larger war for western civilization, will be lost.”

“But I tell you this: We will not go gently into that bloody collectivist good night. Indeed, we will make with our defiance such a sound as ALL history from that day forward will be forced to note, even if they despise us in the writing of it.”

~ Mike Vanderboegh

This thread will refresh daily and appear above the Open Discussion Thread.

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Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen †

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This administration is a lesson in abject silliness.  Everyone knows that Joe Biden has no clue who or what is being done in the energy policy of his administration; heck, he could not even name his Interior Secretary.   That said, whoever controls his Twitter account is now just making him look even more stupid as Biden blames the gas stations.

[Tweet Source]

I would draw attention to the most overlooked quote from Joe Biden as it pertains to gas prices.  This statement was made May 23, 2022, and it proves he knows the gas price is directly related to his choice to implement the Green New Deal by executive policy:

…”Here’s the situation.  And when it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels when this is over.”…  [source]

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This week Neil Oliver talks about the new Utopia we are being instructed to accept.  A world in which there are no rights, only permissions.

Everything including the modification of diets and the eating of bugs and fake meat; to the type of carbon footprint home we are permitted, to the energy we may use or the acceptable car we must drive; permissions, assuming of course, our social media profile and accompanying score is in line with regulatory inspection.

Nope.  Not happening.  There are more of us than them.  We will not eat the bugs.  WATCH: 

[Transcript] – What’s being done to us, or tried on us at least, isn’t working … and it isn’t working and won’t work because what we’re being pushed to accept as the new world makes no sense. The supposed utopia we’re being promised – or, rather, having rammed down our throats – is one in which there is no universal truth, no absolute and trusted truth, but only personal truth that trumps all else.

There are to be no facts like those observed by biologists, just as a for instance, and only feelings based on personal preferences that change from day to day. It will be a world in which we might have no inalienable rights, rights we are born with – just permissions granted one by one by the state … and then only if we do as we are told and do without cars and warm homes and eat our bugs and fake meat and take our medicine on demand. It is a world in which 2+2 might equal 5 if some faceless, unelected bureaucrat says it does – and if any of us says no, 2+2 always and only equals 4, then our bank accounts won’t give us any money until we accept our arithmetical and moral error.

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Two weeks ago, a NATO blockade of Kaliningrad, an outpost of Russia, was triggered when Lithuania blocked the transport of goods through Suwalki corridor.  According to the Lithuanian justification they were following through on NATO sanctions against Russian goods.  However, the escalation was very provocative toward Russia and discussions between Russia and NATO countries were tense.

Apparently, Germany was increasingly concerned the blockade was creating a scenario where Russian military were going to escort the transport of railroad goods to Kaliningrad, and that would lead to escalated military conflict with Russia. “German Chancellor Olaf Scholz is eager to avoid unnecessary provocations of Russia. He has repeatedly emphasized that he would do everything in his power to ensure that NATO does not become a party to the war between Russia and Ukraine. German soldiers are stationed in Lithuania and could become involved in a possible conflict.” {link}

The EU has now dropped the blockade and the transport of goods between Kaliningrad and Russia will resume.  The EU decision was made before the NATO meeting in Madrid concluded; however, it looks like NATO postponed the announcement until after Biden left in order to save face on the reversal of position.

GERMANY – The European Commission plans to issue a clarification that will allow Russia to resume sending supplies to the exclave of Kaliningrad via Lithuania. Berlin supports the idea, but some in Vilnius are not pleased.

[…] The move will put an end to a disagreement that had not only been a significant source of tension between Russia and Brussels – but also exposed deep rifts within the EU regarding the correct approach to Moscow.

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It is very curious timing in this article from Newsweek, containing massive geopolitical implications, using identified Saudi Arabia sources, would come in advance of Joe Biden’s visit to the Kingdom of Saudi Arabia.

Is this strategic geopolitical pressure from Saudi leader Mohamed Bin Salman (MbS) ahead of the meeting with Biden; or is this a genuine possibility that looms as likely?  If the former, then Joe Biden is being geopolitically slow roasted by Saudi Arabia for his previous disparagements and ideological hypocrisy in his visit.  If it is the latter, well, then the tectonic plates of international trade, banking and economics are about to shift directly under our American feet.

We have been closely monitoring the signs of a global cleaving around the energy sector taking place.  Essentially, western governments’ following the “Build Back Better” climate change agenda which stops using coal, oil and gas to power their economic engine, while the rest of the growing economic world continues using the more efficient and traditional forms of energy to power their economies.

This article from Newsweek is exactly about this dynamic with Saudi Arabia now potentially joining the BRICS team.

NEWSWEEK – Finland and Sweden’s green light to join NATO is set to bring about the U.S.-led Western military alliance’s largest expansion in decades. Meanwhile, the G7, consisting of NATO states and fellow U.S. ally Japan, has adopted a tougher line against Russia and China.

In the East, however, security and economy-focused blocs led by Beijing and Moscow are looking to take on new members of their own, including Iran and Saudi Arabia, two influential Middle Eastern rivals whose interest in shoring up cooperation on this new front could have a significant impact on global geopolitical balance.

The two bodies in question are the Shanghai Cooperation Organization (SCO) and BRICS. The former was established in 2001 as a six-member political, economic and military coalition including China, Russia and the Central Asian states of Kazakhstan, Kyrgyzstan and Tajikistan before recruiting South Asian nemeses India and Pakistan in 2017, while the latter is a grouping of emerging economic powers originally consisting of Brazil, Russia, India and China (BRIC) upon its inception 2006, and including South Africa in 2010.

Here is the money quote:

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