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Ford Reportedly Idling F-150 Lightning Production For Seven Weeks Amid Sluggish Demand 

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Ford Reportedly Idling F-150 Lightning Production For Seven Weeks Amid Sluggish Demand 

Demand for the Ford F-150 Lightning pickup must be so abysmal that the legacy automaker is reportedly planning to shutter the production line for the EV truck in the coming weeks through the end of the year. This should be no surprise to readers, given that the Tesla Cybertruck has become America’s best-selling electric pickup.

“Ford Motor Co. plans to stop building its F-150 Lightning from mid-November through the end of the year amid lower-than-expected demand for the electric pickup,” Automotive News’ Michael Martinez reported on Thursday morning. 

At the start of October, John Lawler, Ford’s vice chair and CFO, told reporters in a conference call, “We’re seeing a tremendous amount of competition,” adding, “In fact, S&P Global … said that there are about 143 EVs in the pipeline right now for North America — and most of those are two-row and three-row SUVs.”

Ford scrapped plans to roll out an all-electric three-row SUV in August. This year has been doom and gloom for legacy automakers (from the US to Europe) as they aggressively scale back on EV investments.

The reality is that the Biden-Harris administration, lawmakers, and Wall Street, all wearing climate crisis blinders, stoked the most massive green energy bubble that collapsed. In doing so, legacy automakers who poured billions of dollars into EVs, severely misjudged consumer demand – and now paying the consequences:

Remember when Ford CEO Jum Farley was raving about the F-150 EV? 

Also, by the way, F-150 EV used prices on Bring A Trailer imploded…

Meanwhile, the Tesla Cybertruck has become America’s best-selling electric pickup… 

“Tesla’s Cybertruck was the third best-selling electric vehicle in the United States in the third quarter, beating out every other EV not made by Tesla. The only two vehicles that sold better were the Model 3 sedan and Model Y SUV,” according to TechCrunch. 

The revival of Americana certainly shows that tastes among the younger generation are abruptly changing towards cool, innovative brands, such as the ones Musk owns.

Tyler Durden
Thu, 10/31/2024 – 09:35

Lame Yuck! With Nothing To Lose, Biden Goes On Baby-Mouthing Spree At White House Halloween Party

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Lame Yuck! With Nothing To Lose, Biden Goes On Baby-Mouthing Spree At White House Halloween Party

One night after punching a new hole in the sinking ship that is the Kamala Harris campaign — and with no political future of his own to tamp down his impulse to put his mouth on children — President Joe Biden went on a baby-biting binge at a White House Halloween party on Wednesday night, leaving the internet collectively mortified. 

For anyone who’s somehow unaware, Biden has a long, rich history of mouthing, sniffing and grabbing children and women. This video gives just a small sampling of Biden’s uninvited touching that has fully earned him the nickname “Creepy Joe”: 

After multiple women came forward to say Biden had made them uncomfortable with his touching, Biden issued a video apology in 2019, saying, “Social norms are changing. I understand that, and I’ve heard what these women are saying. Politics to me has always been about making connections, but I will be more mindful of personal space in the future.”

However, with no second term on the line Wednesday night, Biden gleefully abandoned his personal-space pledge. Given his record, it would have grabbed major attention if Biden only mouthed a single baby. However, like an alcoholic falling off the wagon with great abandon, he indulged himself over and over.  

Biden opened his mouth wide on the thigh of this baby dressed as a chicken (Nathan Howard/Reuters via Fox News)

No doubt realizing this would be one of the last such opportunities he will ever have, the 81-year-old lame duck proceeded to mouth baby after baby that parents served up to him in a receiving line. Those parents appeared to politely tolerate their offspring being christened with presidential saliva, but we can imagine his handlers facepalming as Biden gave way to his compulsion to bestow oral affections.  

This parent smiled as Biden mouthed her baby’s foot…

(Nathan Howard/Reuters via Fox News)

The video is even worse, showing Biden repeating the unsettling act: 

This father didn’t seem nearly as enthusiastic as Biden kissed his infant daughter’s toes…

(AFP via Getty Images)

Showing he’s not just a leg-and-foot man, Biden mixed things up and went for this baby’s arm…

The baby-mouthing blitz capped quite a 24-hour stretch for Biden. On Tuesday evening, just as Kamala Harris was delivering her highly-promoted “closing argument” speech on the Capitol Ellipse, Biden undercut his replacement on the Democratic ticket by telling an audience that “the only garbage I see floating out there is [Trump’s] supporters.“

The White House scrambled to claim that Biden was stuttering, and that there should be a possessive apostrophe (supporter’s) — supposedly indicating he was singling out an insult comedian at Trump’s Madison Square Garden rally who likened Puerto Rico to a pile of garbage — many people aren’t buying it, and the Trump campaign is using the gaffe to enormous advantage.

Meanwhile, social media lit up over Biden’s creepy Halloween display, including a positively ghastly yet somehow fully appropriate horror-movie treatment: 

 

Tyler Durden
Thu, 10/31/2024 – 08:55

High Yield Bonds: Excess Spread Vs Excess Optimism?

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High Yield Bonds: Excess Spread Vs Excess Optimism?

Authored by Charles de Quinsonas via BondVigilantes.com,

With the US Treasury curve yielding above 4%, high yield (HY) bonds still offer mid-single digit yields.

As of the end of September, US high yield, European high yield and emerging markets (EM) corporate high yield bonds were offering 7.0%, 6.1% and 7.4% respectively.

Credit spreads, however, have plummeted to multi-year lows and the eternal debate between all-in yield vs credit spreads continues.

Source: M&G, BofA Global Research, as at 30 September 2024

Credit spreads matter because, at an index level, they need to overcompensate for future defaults.

Otherwise, there would be no reason to invest in high yield bonds, as adjusted for default loss, high yield returns would be in line with the risk-free rate (or worse, if default losses were greater than credit spreads).

Therefore, credit spreads have two main components:

(i) default-implied spreads, which provide a forward-looking view on future defaults and recovery, and

(ii) excess spreads, which, simply put, represent the overcompensation of default risk.

Active management will aim to reduce default loss and increase excess spread.

To calculate the actual excess spreads across the US, European, and emerging markets high yield markets, one can subtract from credit spreads the realised subsequent twelve month default rate (adjusted by recovery value).

For example, the US high yield market had credit spreads of 440bps in September 2014. The subsequent 12 months (to Sep-2015) saw a 3% default rate with a recovery rate of 40%, leading to a default loss of 1.83%.

Therefore, investors who bought US high yield in September 2014 enjoyed an actual excess spread of 257bps (440bps minus 183bps of default loss).

Source: M&G, as at 30 September 2024

The results over time are surprising.

While the excess spread in the European high yield market consistently overcompensates for default risk, US high yield and emerging markets corporate high yield excess spreads were negative during some periods, i.e. realised one-year default losses were greater than credit spreads a year earlier.

However, this can be explained by one-off events, namely COVID-19 for US high yield and the Russia/Ukraine conflict for emerging markets high yield.

With that in mind, we believe median numbers are more representative.

Between January 2014 and September 2023, the median excess spreads of US, European and emerging markets high yield were remarkably similar, ranging from 280 to 310bps.

Taking today’s historically tight high yield credit spreads and using 300bps as our base case excess spread, we can derive the implied default loss expectation of the market for the next 12 months. As of end of September 2024, the implied default loss expectations were 0.1% for US high yield, 1.4% for European high yield, and 0.9% for emerging markets high yield. This compares to broker research expectations of 2.5-3% default rates for 2025, across the US, European and emerging markets high yield markets.

Even when adjusted for recovery rates, next year’s default losses are expected to be greater than what current credit spreads are pricing in.

Which will prevail in the next 12 months: excess optimism or excess spreads?

Tyler Durden
Thu, 10/31/2024 – 07:20

Halloween Spending Expected To Fall Short Of 2023 Record

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Halloween Spending Expected To Fall Short Of 2023 Record

After hitting a record high in 2023, U.S. consumer spending for Halloween items like candy, decorations and costumes is expected to drop by $600 million to $11.6 billion, according to data from the industry group National Retail Federation (NRF).

Despite the decrease, Statista’s Florian Zandt notes that this still marks the second-highest expected spending in the past decade.

Infographic: Halloween Spending Expected To Fall Short of 2023 Record | Statista

You will find more infographics at Statista

While the coronavirus pandemic was responsible for the most recent drop before the 2024 Halloween season, growth had been stagnant before the Chinese virus’ impact on public and social life around the world.

For example, after consumer spending increased by $2.2 billion between 2015 and 2017, 2018 and 2019 saw drops of $100 million and $200 million, respectively, compared to the previous year.

So while the implementation of social distancing rules was certainly one cause for the drop of $800 million or ten percent in comparison with 2019, the industry had been bracing for decline for some time before the pandemic.

Zooming in on what U.S. residents are spending their money on shows most will go towards costumes and decorations.

Additional NRF data indicates that overall consumers in the United States will allocate $3.8 billion each in both categories, with candy coming in second at $3.5 billion.

The greeting card industry, however, will hardly profit from Halloween, with approximately $500 million spent on this specific type of Halloween item.

Tyler Durden
Thu, 10/31/2024 – 06:55

Harvard Memorial Church To Host “Reading Taylor Swift As A Sacred Text” Event

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Harvard Memorial Church To Host “Reading Taylor Swift As A Sacred Text” Event

Authored by Jennifer Kabbany via The College Fix,

A Harvard Memorial Church student program is slated to host a “Reading Taylor Swift as a Sacred Text” tonight.

The Tuesday evening event is organized by the Memorial Church Student Program Coordinator & Multifaith Engagement fellow.

“What can reading the texts that matter to us as sacred tell us about ourselves and our lives? Discover a new way to engage with the Taylor Swift canon that honors the important emotional and spiritual role her work plays in many peoples’ lives. Bring your favorite Taylor Swift song and we’ll bring the sacred reading practices,” the event description states.

The RSVP page also states the gathering is “open to people from all religious, ethical, and spiritual backgrounds.”

“We will be using Lectio Divina, an ancient Christian monastic reading practice, but the insights you gain from this practice will not necessarily be connected to the Christian tradition or ‘religious’ in nature. Students are invited and encouraged to bring insights and wisdom from their own lives, traditions, and backgrounds.”

Harvard is no stranger to Swift adoration.

It offered a class dedicated to the pop star last spring.

That class even hosted an all-nighter to review the release of her new album “The Tortured Poets Department.”

As The College Fix previously reported, the University of Florida’s Honors Program offered a course on Swift last semester.

As it relates to the intersection between Swift and religion, The Fix reported in July about a class at Duke University that involved Swift and the occult:

At Duke University, a first-year writing course called “Radical Magic,” will analyze why magic and the supernatural “have been coded as feminine, irrational, and sinister.” Students also will discuss why people accuse Taylor Swift of witchcraft.

Course instructor Cheryl Spinner told The Fix via email [at the time] her class will look at footage of Swift’s Eras Tour and “use gender and feminist studies to parse out what’s really going on with these accusations.”

Spinner said she had productive discussions in previous classes about the pop star, including the lyrics from one of her songs: “I leap from the gallows and I levitate down your street,” which Swift sings on a moving stage that appears to make her float.

The class also will examine the literacy quality of tarot cards, spells, and incantations. Their final project will be to create a grimoire, or spellbook that records “magical insights and oral traditions that might otherwise be forgotten,” according to Spinner.

An entire academic conference has also been dedicated to Swift in the past, zeroing in on topics such as gender, capitalism and feminism. 

Tyler Durden
Thu, 10/31/2024 – 06:30

Kamala Harris’ Bizarre Marketing Campaign Appeals To The Worst In Humanity

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Kamala Harris’ Bizarre Marketing Campaign Appeals To The Worst In Humanity

You can tell a lot about a political candidate and their party by their marketing campaigns.  Most importantly, do they explain the views of their candidate and their policies?  Or, do they simply seek to manipulate voters into believing something that’s not true?

The Kamala Harris campaign has actually gone one step further in the past month with a bizarre series of ads that, when examined altogether, showcase an ideological degeneracy that appeals to the worst in humanity.  While Donald Trump and conservatives are often accused of being “mean” or blunt in their rhetoric, at least it’s sincere and speaks to actual issues rather than subconscious desires.  On the other hand, if you’re looking for any kind of class in a candidate, there’s none to be found among the Democrats.

Taking a page from the Edward Bernays school of advertising that taps into the grimy recesses and narcissism of the dregs of society, the marketing for Harris has been odd – It encourages dishonesty among families, relies on shaming techniques instead of critical thinking and it’s often sexually charged in the ugliest way.

Some of these ads are not directly created by Harris operatives, but generally speaking most ads are approved by the candidate or political party officials before they’re released.

In her most recent campaign, Harris ads attempt to sow discord among married couples, suggesting that women should hide their political views from their husbands and vote for Harris without them knowing.  Or, the goal is to suggest that American men are somehow controlling their wives and coercing them into voting for Trump:

In the Democrat fantasy world the only reason a woman would vote for Trump is because her husband is forcing her to.  It’s a rather insulting portrayal of women, but it also taps into the leftist assumption that all minorities and women are their political property.  If a woman or a minority votes conservative, Democrats assert that it’s because they’ve been brainwashed into it.

Beyond that, any man who has been married for even a short period of time is well aware of his wife’s political ideals and will not be surprised how she votes.  It’s strange that the Harris camp is trying to portray voting as if it should be treated like an extra-marital affair.  Of course, this is the kind of behavior that progressives commonly encourage women to engage in, it’s just weird to see it so blatantly promoted in a campaign ad. 

Then there’s the efforts to shame men into voting for Harris which have clearly not gone over so well.  Her support among men is dismal, even among Gen Z, and this can be attributed directly to the decade long propaganda war on masculinity perpetrated by leftists.  Men remember, and they’re certainly not going to vote for the same people that have called them “incels” or “rapists” or “toxic” for years.

Shaming is a traditionally feminine psychological tactic.  This ad gives us an example of the reality that Democrats operate from a highly estrogenated world view and they don’t understand men in the slightest.

By extension, Democrats may have made an epic blunder with this grotesque ad featuring a man masturbating in bed while watching porn, only to be disrupted by a cliche Republican invading his privacy and telling him he’s not allowed to punish his porpoise anymore.

The ad itself is far creepier than the Republican it tried to lampoon, insinuating that masturbation is on the ballot and that this is something the average male voter should be focused on.  For progressives, everything is about sex.  A root obsession of narcissists, sexual gratification is a core value for them and sexual identity a proxy making up for a lack of any legitimate personality. 

Furthermore, the conservative efforts against pornography are specifically aimed at enforcing age limits online so that children don’t have access (a pervasive problem in the digital era). It’s a reasonable position, but Democrats desperately want kids to have access to sexual content for some reason.

Sticking with the theme of sexual gratification, let’s not forget this little gem of an ad which features a black man trying to match with women on a fake dating show, only to be denied by all of them because he says he’s not voting.  The message?  Vote for Harris or you won’t get laid.

The marketing is also aimed at women, much like the voting in secret ad, teaching them to treat men like the enemy unless those men vote Democrat.  There are dozens of other ads like this beyond those listed here, with a host of Dem candidates following Kamala’s lead.  This is truly the dark side of political content, reducing voters down to their most base animal instincts and avoiding any mention of actual policy. 

To be sure, Democrats understand the mentality of their core supporters well, but these ads would not appeal to anyone outside of the most rabid leftist activists.  For posterity, the Harris marketing campaign should be studied as a window into the progressive mind; future generations should be dissecting this material for decades to come as an example of one of the most unsettling chapters in American political history.    

Tyler Durden
Thu, 10/31/2024 – 05:45

Trump Holds Press Conference In Garbage Truck En Route To Green Bay Rally

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Trump Holds Press Conference In Garbage Truck En Route To Green Bay Rally

Update: (630pm): Late last night, after all the garbage drama had finally quieted down, we suggested that if Trump shows up in a garbage truck tomorrow, the media would explode.

Fast forward to this afternoon when, in a move that may very well seal the election, Trump took this advice and after landing in Green Bay, Wisconsin, he conducted a brief press conference in a garbage truck which he then rode to his rally.

And, as we suggested last night, the media is currently losing their minds as they have no choice but to cover Trump in a garbage truck.

Meanwhile, here is Brett Favre who will surely speak next to Trump shortly.

Here is Trump at his Green Bay rally:

You can watch the Green Bay rally below:

* * *

Update (1045ET): Vice President Kamala Harris has responded to Biden’s ‘garbage’ comment – saying “first of all, he clarified his comment” – referring to the ham-fisted attempt to suggest he was talking about one Trump supporter, Tony Hinchcliffe, and not what we all heard.

“I strongly disagree with any criticism of people based on who they vote for,” Harris continued, before launching into word salad mode.

Oh really?

h/t @mgEyesOpen

*  *  *

Update (2147ET): President Trump has responded to Biden’s comments, saying “Remember Hillary, she said deplorable… Garbage I think is worse.”

Does Harris agree?

And of course, the media is already spinning this – suggesting that Biden said ‘Trump’s supporter’s‘ – singular, as if he was only referring to Hinchcliffe.

Trump running mate JD Vance responded as well – calling out journalists trying to spin this:

*  *  *

You may have heard. During Donald Trump’s 7-hour, celebrity-packed rally at Madison Square Garden, comedian Tony Hinchcliffe called Puerto Rico a “floating island of garbage,” in reference to the US territory’s well known problem with overflowing landfills.

The left went into absolute hysterics,

Liberal comedian Jon Stewart was the voice of reason…

And just when you thought the dust had settled, President Biden called 80 million Americans human garbage:

“Donald Trump has no character. He doesn’t give a damn about the Latino community…just the other day, a speaker at his rally called Puerto Rico a floating island of garbage?…The only garbage I see floating out there is his supporters,” reports NBC News’ Gabe Gutierrez.

Update: Then he lied about it!

Even CNN isn’t buying it…

Meanwhile, Puerto Rican Trump supporters responded with a pro-Trump caravan…

Puerto Rican politician Zoraida Buxó came out for Trump at a Tuesday rally…

Stay classy, Biden…

 

Tyler Durden
Thu, 10/31/2024 – 05:44

British Public Demands Answers From Gov’t After Latest Revelations In Southport Terror Attack

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British Public Demands Answers From Gov’t After Latest Revelations In Southport Terror Attack

Authored by Thomas Brooke via Remix News,

New details emerging about the Southport terror attack have intensified scrutiny on U.K. Prime Minister Keir Starmer and Home Secretary Yvette Cooper, as revelations surfaced indicating the attacker was in possession of Al-Qaeda training materials and the lethal poison ricin.

The revelations have prompted urgent questions about what the government knew about the attacker and why this information was kept from the public at a time of palpable anger and civil unrest.

Axel Rudakubana, the 18-year-old son of Rwandan immigrants who is accused of stabbing to death three young girls attending a Taylor Swift-themed dance class on July 29, appeared via videolink at Westminster Magistrates’ Court on Wednesday following two further terror-related charges.

On Tuesday, Merseyside Police confirmed that Rudakubana had been charged with production of a biological toxin, namely ricin, and for possessing “a PDF file entitled ‘Military Studies in the Jihad Against the Tyrants: The Al-Qaeda Training Manual.’

These charges are on top of the three charges of murder, 10 charges of attempted murder, and one charge of possession of a knife following the heinous attack in the northwest English town this summer.

The attack led to mass riots against asylum accommodation across England and a demand for a radical change in the government’s approach to mass immigration.

The government adopted an overzealous response to the protests, promising that those involved would face the full weight of the law. This led to many individuals, some of whom had not even been present at the riots but posted about them on social media, controversially being handed hefty jail sentences.

Now, the leadership candidates for the U.K.’s opposition Conservative Party are demanding the prime minister reveal what he knew about the Southport attacker and when.

“The BBC says the government learned about the new charges ‘in recent weeks.’ Can Keir Starmer please explain when he learned the attacker allegedly had an Al-Qaeda manual and biological weapon? The public deserve the truth,” Robert Jenrick wrote on social media.

He added that he is “seriously concerned facts may have been withheld from the public.”

His leadership rival, Kemi Badenoch added that there are “serious questions to be asked” of both the government and the police.

Many on social media attempted to dismiss suggestions that the slaughter of young girls by Rudakubana was an Islamist-related attack, noting that he his parents originated from Rwanda, a predominantly Christian country. However, the latest charges suggest his radicalization by Islamist terror cells.

Downing Street has refuted any accusations that senior politicians withheld information, insisting this is “not correct” and called for the media to remain focused on the victims of the attack.

“The most important thing is to get justice for Bebe, Alice, and Elsie and their heartbroken families, and all those affected by the attack, and nobody should put that at risk,” Home Secretary Yvette Cooper added.

Read more here…

Tyler Durden
Thu, 10/31/2024 – 03:30

China Hemorrhages Third Of All Billionaires Amid Property Market Crisis 

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China Hemorrhages Third Of All Billionaires Amid Property Market Crisis 

Chinese billionaires have lost massive wealth due to the property market downturn and turmoil in the world’s second-largest economy. In response, Beijing has rolled out yet another stimulus package, this time on Tuesday, as the Communist Party of China seeks to appear more proactive in supporting the economy amid a decades-long, investment-driven growth model that has hit stumbling blocks over the last several years.

The multi-year economic downturn has roiled the billionaire class in China, with many losing their billionaire status and being downgraded to centi-millionaire. 

Financial Times cites new data from research group Hurun, which shows the number of dollar billionaires plunged by over one-third in the last three years. The destruction of the billionaire class has been met with a barrage of stimulus measures to address underlying structural problems (debt, fertility crisis, deflation, property market woes, ect…), crushing the economy into a slow growth regime.

Hurun data shows that at the 2021 peak, there were 1,185 dollar billionaires in China. By the second half of 2024, that number plunged to 753, or about a 36% plunge, surpassing a 10% drop in the renminbi’s value against the dollar over the same period. This year alone, the number of dollar billionaires in China tumbled 16%, when the renminbi only depreciated by 2.5% against the dollar. 

Source: Financial Times

China’s decades-long investment-led growth boom in the property market minted billionaires upon billionaires. However, the downturn has wiped out many entrepreneurs with huge fortunes tied to property developer firms. 

Rupert Hoogewerf, chair of the Hurun Report, commented on the billionaire list, indicating it “has shrunk for an unprecedented third year running, as China’s economy and stock markets had a difficult year.”  

Topping the list is ByteDance founder Zhang Yiming. He surged to the top, beating out “bottled water king” Zhong Shanshan, with a net worth of $49.3 billion. 

Source: Financial Times

The Hurun report said that newly minted billionaires represent a “new generation of entrepreneurs in China that is much more international than their predecessors.” 

As we explained early Tuesday following the announcement of yet another Chinese stimulus package, the 10 trillion yuan package may be insufficient to kickstart the economy … and explained in “Why China’s Rally Won’t Have Legs” … is that China’s peak credit impulse – the all-important reflationary variable that propagates across the global economy – has dwindled, and so has the boost to growth.

In other words, to achieve the same stimulus level as a % of GDP, China would need to inject tens of trillions more. And since it can’t do that, at least not without its middle class kicking and screaming (literally), China’s house price will continue to slide, having recently tumbled by a record YoY amount…

What does this mean for the Chinese billionaires tied to the housing market? Well, the pain train will continue until Beijing unleashes a real stimulus bazooka.

Tyler Durden
Thu, 10/31/2024 – 02:45

Regional Conflict Vs World War III?

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Regional Conflict Vs World War III?

Authored by Daniel Oliver via American Greatness,

In a recent National Review, John O’Sullivan makes a compelling case for aiding Ukraine but not a convincing one. There are several problems, and they are worth rehashing one more time before the election.

If Trump wins, we know what happens.

If Harris wins, we really have no idea what will happen.

She is likely to bungle along as our current mentally challenged president has for the last two years: sandwiched between her anti-Semitic supporters and a lot of traditional Jewish Democrat supporters who – for some reason, no one (not even Norman Podhorets in the 352 pages of his 2010 book, Why Are Jews Liberals) has quite been able to explain – still vote Democrat.

O’Sullivan’s chief argument is the Hitler comparison: before World War II began, no one really believed that Hitler would sweep across Europe. But he did. And so, the thinking goes, will Putin. Maybe. But maybe not.

O’Sullivan writes:

“At their last summit meeting in Istanbul in November 1999, President Bill Clinton was surprised to be asked by Russian president Boris Yeltsin: Why don’t we agree that Russia can have Europe while the U.S. gets the rest of the world? His exact words were, ‘I ask you one thing. Just give Europe to Russia. The U.S. is not in Europe. Europe should be the business of Europeans. Russia is half European and half Asian.’”

“Andrei Illarionov, who was Putin’s economic adviser for several years (and a very successful one), has on several occasions testified that the Russian president has a well-worked-out long-term strategy to divide continental Europe from America and the U.K., to reach a Treaty of Rapallo–like agreement with Germany and France, and subsequently to wage a long campaign of subversion to weaken the Anglosphere powers.”

O’Sullivan also notes the amount of Russian spending on its military:

“The most conservative estimate of Russian spending is 6.5 percent of GDP. Other estimates go as high as 14 percent—though [O’Sullivan concedes] recent events suggest that President Putin is not getting a good bang for his buck.”

Those are not uninteresting points, but as O’Sullivan also concedes, Putin’s military seems to be second-rate, at best.

“If Russia is struggling to defeat Ukraine and even to defend its territory from Ukrainian advances, then it’s very clear that Russia could never win a conventional war against NATO.”

Yes, but: could it win a conventional war against Europe without the U.S.’s NATO contribution?

What should the U.S. do? And whatever the U.S. does, should it do it for Europe or only, or at least primarily, for the U.S.?

If it is so obvious that Putin really intends to gobble up much of Europe, why don’t the Europeans gird their loins, fasten on their breastplates, and get ready for war?

At a meeting of sophisticated policy types in Europe a few weeks ago, one European “reminded” the gathering that in 2008, the GDP of the U.S. and Europe were about equal. Today, the U.S. GDP is 75 percent larger. Not only that, Europeans are enacting laws designed to restrict U.S. companies from doing in Europe the things that have made the U.S. GDP so much larger than the EU’s GDP. The Wall Street Journal ran a piece making the same points on October 15.

So what? So the Europeans claim they don’t have the economic muscle to fight Putin alone and therefore need U.S. assistance. What’s wrong with that picture?

But there’s more. In the Summer 2024 issue of The Claremont Review, Christopher Caldwell notes that France plans to reduce its manpower in Central and West Africa (where it has been booted out of one country after another) to 600 troops and asks, “So how does it propose to join the Ukrainians in a major European ground war against Russia, which has several hundred thousand troops who have withstood an American proxy war for the better part of three years?”

And, writes Caldwell, “If you exclude [Britain’s] nuclear deterrent, its military spending has fallen to 1.8 percent; Britain is now spending less to defend itself than to pay the interest on its vast debt. In an interview with the Financial Times in early July, a former director of the British Ministry of Defence’s Office of Net Assessment judged the U.K. military unprepared for ‘conflict of any scale.’”

And “the Baltic states—Latvia, Lithuania, and Estonia—have fewer than 50,000 soldiers and not a single main battle tank.”

So Europe’s economy is in shambles and European countries don’t really have functioning armies. They could have better economies (if they tried the free market), which would enable them to have better armies. And the smart money is betting on that happening when pigs learn to fly.

Pending which, is the U.S. supposed to bail the Europeans out again?

In 1951, Eisenhower said, “If in ten years, all American troops stationed in Europe for national defense purposes have not been returned to the United States, then this whole project will have failed.” Did he sense that the Europeans wouldn’t bother to provide for their own defense?

A faux argument that has been trotted out by the Biden administration and other supporters of U.S. aid to Ukraine untutored in economics is that by spending gazillions of dollars on military hardware that we would then give to the Ukrainians, we are really helping America by paying American workers. But where does that money come from? Either from taxes on productive workers (when you tax an activity, you get less of it) or from loans to be paid off by our productive children and grandchildren. If paying some Americans to build bombs for Ukraine is such a good idea for America, why don’t we pay all American workers to build bombs for Ukraine?

One contribution the U.S. could make is to turn on its oil spigots—turned off by the climate crazy—and mentally challenged—Joe Biden, whose policy is surely supported by Kamala Harris. That would lower the world price of energy and drastically decrease Russia’s revenue—and wouldn’t cost the U.S. a cent.

Over the last decade, oil and gas have provided the largest single source of revenue for the Russian government, accounting for up to 50 percent of Russia’s budget.

In October 2024, Alexandra Prokopenko, an economist at the Carnegie Endowment for International Peace, estimated that “at current exchange rates, a $20 fall in oil prices would lead to a 1.8 trillion ruble ($20 billion) fall in [Russia’s] revenues . . . equivalent to about 1 percent of Russia’s GDP.”

Flooding the market with oil would also create financial hardship and perhaps calamity for Iran too (yes, Virginia, there is a Santa Claus).

Trump would do that. Harris would not. (Vote early and often.)

Meanwhile, back on the global stage, the U.S. must turn its attention to the growing threat from China, a far more serious threat than Russia—a point O’Sullivan seems to disagree with. He writes: “It is inevitable that an America that is now, if anything, too aware of China’s challenge (having ignored it for too long) will move money and troops from Europe to counter that challenge.” Well, yes. Precisely.

O’Sullivan’s comparison of Putin to Hitler may be correct, but he underestimates the threat that China poses—and also, probably underestimates the benefit to Europe that containing China provides.

The U.S. can’t do everything, and the sooner the Europeans grow up and recognize that and then act on that recognition, the better off they—and we—will be.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge.

Tyler Durden
Thu, 10/31/2024 – 02:00