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Bring Out Your Dead: Mall Retailer ‘The Body Shop’ Files For Chapter 7 Bankruptcy

Bring Out Your Dead: Mall Retailer ‘The Body Shop’ Files For Chapter 7 Bankruptcy

Another one bites the dust.

Following the endless list of mall-retailer bankruptcies that have occurred since Covid further made in-person shopping more irrelevant than it was in years prior, one more name is joining the list: The Body Shop. 

Since its inception in 1976 by Anita Roddick in the United Kingdom, The Body Shop has navigated through various ownerships, and recently, it has been embroiled in a highly publicized struggle for survival, The Street reported last week. 

This struggle was initially signaled by the closure of half its UK stores, subsequently leading to a restructuring process in Canada and a sudden shutdown of its operations in the U.S. on March 4.

“Bring out your dead!”

“The Canadian subsidiary of the global beauty and cosmetics brand announced it has started restructuring proceedings by filing a Notice of Intention (NOI) to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). In the same release, the company said that, as of March 1, 2024, The Body Shop US Limited has ceased operations,” a report from Chain Store Age said days ago. 

A vague message on the U.S. website of the company hinted at temporary maintenance; however, the persistence of this message, coupled with a new filing, indicates a permanent closure rather than a temporary outage

According to The Street, the company’s website reads: “We’re currently undergoing planned maintenance, but don’t worry we’re due to be back online soon.”

The Guardian followed on by reporting: “The US arm of the ethical cosmetics group has ceased trading at its 50 outlets. On Saturday (March 9), it filed for Chapter 7 insolvency, under which assets are sold off to clear debts, putting about 400 jobs at risk including those in a distribution center that still holds millions of dollars worth of stock.”

Tyler Durden
Mon, 03/11/2024 – 16:40

The Anti-Democratic Democratic Left

The Anti-Democratic Democratic Left

Authored by Victor Davis Hanson via American Greatness,

Joe Biden has claimed that his opponents are assaulting democracy on the basis of the January 6, 2020, buffoonish riot.

Aside from the fact that storming the Capitol Rotunda sometimes is apparently deemed permissible – as in the recent pro-Hamas takeover of it – or aside from the fact that disrupting a federal government proceeding is deemed exempt – as in the recent pro-Hamas throng that blocked the route of the presidential motorcade and thus delayed the State of the Union address to the nation by 26 minutes – who really is attacking democracy?

Take the Supreme Court. After the Court went to a 6-3 conservative majority, liberal law professors, progressive activist groups, and many ends-justify-the-means Democrats in Congress began advocating “packing the court” to gain additional new billets for left-wing judges.

In other words, the left had little confidence that it would hold the White House and the Senate when a judicial opening came up, so it sought to force the issue while it had the power in both.

Formerly, any such notion would have been written off as lunatic and dangerous, given that the nine-justice Supreme Court has been canonized for 155 years since 1869. Second, during the last time Democrats attacked the nine-justice Supreme Court over its supposedly too conservative rulings – Franklin Roosevelt’s 1937 notorious court-packing scheme – even fellow liberals opposed the toxic gambit. They knew that it would only lead to a tit-for-tat fluid court every time a new administration took power.

Then there was the public demonization of the court, which saw efforts to scare it into “correct” rulings. The effort was multifaceted.

Sometimes the left-wing method was direct intimidation. So in 2020, then Senate Minority Leader Sen. Chuck Schumer (D-NY) led a throng of pro-abortion protestors to the court’s very doors, threatening Justices Gorsuch and Kavanaugh by name. He was not subtle in his warnings: 

“I want to tell you, Gorsuch. I want to tell you, Kavanaugh. You have released the whirlwind, and you will pay the price. You won’t know what hit you.” 

Hit you? Pay the price?

Later, when left-wing mobs thronged at the private homes of some conservative judges with the intention of intimidating them and leveraging their decisions—in violation of a 1950 federal law—the Biden administration did nothing. No wonder a potential assassin soon showed up near the home of Justice Kavanaugh, and, fortunately, did not go through with his planned attack.

Nor was the 2022 leaker ever found who illegally disclosed confidential memos on the court’s future rulings on abortion. In the recent State of the Union address, Joe Biden spoke directly to the seated justices and seemed to level yet another threat: “With all due respect, justices, women are not without electoral or political power…You’re about to realize just how much.” In some sense, Biden was following the precedent of Barack Obama, who in his 2010 State of the Union address made a direct attack on the justices of the Supreme Court, many of whom were in attendance.

In sum, during the years of liberal majorities, the left once defended the sacrosanct nature of the third branch of government. Now, when rulings do not always go their way, they seek to discredit and impugn it. And they employ direct intimidation, willful blindness to threats to the justices’ private homes, and plans to alter the makeup of the court to fit their ideological agendas.

Democracy is also endangered by radical efforts to alter decades of voting protocols to achieve short-term political advantage. Never has a political party organized its state attorney generals and kindred courts to ban their likely opposing presidential candidate from state ballots.

Yet Colorado, Illinois, and Maine did just that in an effort to erase Trump’s name from their state ballots, on grounds that he was an “insurrectionist,” despite never being charged with, much less convicted, of “insurrection.” The anti-democratic effort was designed to deprive millions of voters of their right to vote for the candidate of their choice and to diminish the chances of down-ballot state and local Republican candidates.

In 2020, under the guise of the COVID lockdowns, anti-democratic liberal activists sued or sought out sympathetic bureaucrats in numerous states to overturn state voting laws, a right traditionally given to the state legislatures by the Constitution. They proved so successful that, in a historical first, 68% of Americans in 2020 did not vote on Election Day. By design, the vast majority of them were Biden voters—even as the rejection rate of less verifiable mail-in and early voting ballots radically declined.

At various times since the 2017 Trump inauguration, Democratic activists have sought to neuter the 235-year-old Electoral College by circumventing it through the so-called “National Popular Vote Interstate Compact. The effort would force electors to reflect the national rather than their own states’ votes. Earlier, following the 2016 election, the Left organized a concentrated effort—saturating the media with ads featuring Hollywood celebrities— to convince electors to reject the popular vote counts in their states that Trump had won, and instead to become “faithless electors” and swing the election to Hillary Clinton.

The anti-democratic left has railed about ending the 187-year-old filibuster—but only when Democrats are a minority in the Senate. And many in the Democratic Congress have lobbied to admit Puerto Rico and Washington, DC, as states in order to gain four new left-wing senators, thus ending the 65-year-old 50-state union.

Never before had impeachment been envisioned as a normal political ploy to weaken a first-term president once he lost his House majority. Yet the Democratic House majority, for the first time in history, impeached a first-term president twice. And also, for the first time, Democrats tried him as a private citizen in the Senate and rushed to judgment without a special counsel investigation or report.

There are two themes in the left-wing assault on American democracy’s rules, protocols, and long-held traditions.

One, the left advocates changing or ending an institution only when it has lost control of it.

And two, it would charge as “insurrectionary” any similar Republican effort to do the same.

The January 6, 2020, riot was a stupid and dangerous gambit. But the buffoonish act was certainly not an “insurrection” that justified militarizing the capital for weeks, stocking a congressional investigating committee with partisans, or using the day to permanently delegitimize the Trump candidacy.

No one arrested was armed. Many of the rioters were let into the Capitol by law enforcement. And we now know that Trump actually did request 10,000 guardsmen to keep the peace, a fact covered up by the January 6 committee.

Insurrectionists do not advise their partisans to march “peacefully and patriotically” to the Capitol. Of the five who died on January 6, four likely died from natural causes. The left spread a gargantuan lie that Capitol Officer Sicknick was killed by “insurrectionists.” But in fact, he died the following day from natural causes.

The left also suppressed news of the circumstances surrounding the one violent death of Trump protestor Ashli Babbitt – the unarmed military veteran who was lethally shot while entering a broken window. The name of the shooter, an officer of the Capitol police, in a first, was deliberately suppressed by the media for months.

A prize-winning New York Times reporter claimed that the FBI informants were numerous among the crowd. The number, nature, and purpose of such informants were never disclosed by the FBI.

Of course, not all riots that threaten federal property and functions are deemed the same. In summer 2020, Antifa and BLM fueled 120 days of street violence. The result was $2 billion in property damage, 35 deaths, 1,500 officers injured, and 14,000 arrests.

The violent looters, arsonists, and demonstrators likewise focused on government facilities. But rather than swarming the Capitol, they torched a federal courthouse, a police precinct, and a historic Washington, DC, church. They tried to swarm the very White House grounds and harm the president, who was whisked by the Secret Service to a secure bunker—a fact mocked by the New York Times.

There are two other symptoms of the Democratic assault on democracy.

One is the use of the courts to nullify the candidacy of the left’s presidential opponent in the 2024 election. Many things can be said of the lawfare waged against Donald Trump, but two themes are uncontestable: one, if he had not run for reelection in 2024, he would not have been targeted; and two, were he a man of the left, he now would have no legal worries. Trump’s fate, by design, will be in the hands of big blue-city, left-wing prosecutors, judges, and jury pools.

There are commonalities in such lawfare: Laws are being used in novel fashion solely to “get Trump.” Statutes of limitation are suddenly waived to go after Trump. Federal laws are being bootstrapped by state prosecutors. Some of the prosecutors are themselves compromised and have likely either violated judicial canons or may be subject to prosecution.

Judges are not shy about expressing their dislike for Trump from the bench. Some prosecutors have coordinated with the White House. And the application of justice is blatantly asymmetrical, given that Trump is being tried for some crimes that Biden himself has committed but has been exempted from.

So our institutions have been corrupted in an anti-democratic and purely partisan fashion. The FBI, along with the Clinton campaign and its paywalls, hired a foreign national, Christopher Steele, to smear a presidential candidate in conjunction with the 2016 campaign. The agency also contracted social media censors to suppress news deemed unhelpful to the 2020 Biden campaign.

FBI directors have lied under oath or pled amnesia before Congress when questioned about the agency’s efforts to interfere in the election process. The Department of Justice has also been weaponized. It has sought to exempt the Biden family, violent pro-abortion protestors, and various radical groups from prosecution, even as it goes after pro-life activists and parents at school board meetings. It has segregated January 6 protestors in solitary confinement without charges being filed for months.

On campuses, it is the anti-democratic left, not the right, that has de facto suspended the First Amendment and denied free speech and expression. The left has repeatedly violated both the spirit of the Civil Rights Act and the letter of the law in its use of racial discrimination (the “good” “anti-racism”) to hire, promote, and admit on the basis of race and gender.

It has neutered the right to due process in its frequent kangaroo courts as it tries students for anti-woke thought crimes. And universities have violated freely and brazenly various civil rights statutes that prohibit racial segregation in housing and public spaces, as they institutionalized racially separate graduations, safe spaces, and dorms.

Most disturbing has been the weaponization of the U.S. military. It was on record, in promising to scour the ranks for so-called white supremacists. Yet by December 2023, the Pentagon admitted it discovered no such cabals. But it did drum out some 8,400 veteran soldiers for not being vaccinated, despite most having developed natural immunity from prior infections.

It instituted race- and gender-based protocols for recruitment and promotion and inaugurated an entire woke DEI apparat. Yet now it faces a shortfall of some 40,000 recruits. Mostly the dearth of manpower is due to the fiasco in Afghanistan, coupled with the loud accusations from the Secretary of Defense and Chairman of the Joint Chiefs on down that whites as a collective are somehow under automatic suspicion—supposedly dangerously embittered by the new Diversity/Equity/Inclusion woke Pentagon protocols.

The country has become wary of its own officers. During 2020, retired generals and admirals brazenly violated the uniform code of military justice by openly and publicly smearing and slandering their own Commander in Chief.

Some, along with a former Pentagon lawyer, called for a military intervention, a veritable coup, to remove the president, well apart from scheduled elections. The Chairman of the Joint Chiefs freelanced by contacting his communist Chinese counterpart to apprise him that should his own president call a state of emergency possibly involving nuclear weapons, Gen. Mark Milley would first forewarn the Chinese about the actual nature of the threat and intent of the American president.

The Left talks grandly of “democracy dies in darkness” as Joe Biden beats the dead horse of January 6 to warn that democracy is in its greatest peril. But all such rhetoric is projection.

The verbiage masks the most comprehensive effort in modern American history to radically change, destroy, or warp American laws, customs, and traditions for the short-term aim of gaining and retaining political power.

The rationale is that the left is of such superior morality and wisdom that it has the right to violate the Constitution or the hallowed traditions of the country to achieve the higher end of ensuring a progressive agenda.

In sum, the defense of those destroying democracy is that they are doing it to prevent others from doing what they would do, should they have been on the receiving end of exactly what they are now doing.

Tyler Durden
Mon, 03/11/2024 – 16:20

Crypto Crack-Up Continues As Stocks & Bonds Sink Ahead Of CPI

Crypto Crack-Up Continues As Stocks & Bonds Sink Ahead Of CPI

With all eyes, ears, fingers, and toes tingling ahead of tomorrow’s “most important data item in the whole wide world ever” CPI print (and PPI and Retail Sales later in the week), stocks stumbled on muted volume, bond yields rose, the dollar and gold flatlined, but crypto kept going to the moon…

Bitcoin face-ripped once again up to almost $73,000 – well above the prior record nominal high…

Source: Bloomberg

…and getting very close to its inflation-adjusted high…

Source: Bloomberg

Ethereum also surged today, testing up towards $4100 for the first time since Dec 2021…

Source: Bloomberg

It appears crypto (Ethereum in this case) is following the resurgence in inflation expectations priced into the market…

Source: Bloomberg

US Equity markets were less enthused on the day, with Nasdaq and S&P red (but Small Caps worst). The Dow desperately tried to cling to green…

NVDA is down almost 8% (close to close) over the past two days – its biggest two-day decline since October – and down almost 14% from its highs to today’s lows

Source: Bloomberg

VIX has been bid into this event-risk-prone week…

Source: Bloomberg

Treasuries were sold today with the short-end underperforming…

Source: Bloomberg

The yield curve (2s30s) bear-flattened, erasing Friday’s payrolls steepening…

Source: Bloomberg

The dollar ended the day down (very very) marginally – for its 7th straight down day…

Source: Bloomberg

Gold mirrored the dollar, ending (very very) marginally higher…

Source: Bloomberg

Oil prices ended higher, with WTI finding support at $77, bouncing back above its 200DMA ($77.97)

Source: Bloomberg

Finally, back to crypto. Bitcoin is now ‘larger’ than Silver and Ethereum has overtaken WalMart in terms of Market Cap…

Source: 8MarketCap

Overall, the total crypto ecosystem’s value, according to CoinMarketCap, is now closing in on the previous record high around $2.8 trillion.

Tyler Durden
Mon, 03/11/2024 – 16:00

Grayscale, Coinbase Sit Down With SEC Over Spot Ether ETF

Grayscale, Coinbase Sit Down With SEC Over Spot Ether ETF

Authored by Ana Paula Pereira via CoinTelegraph.com,

Grayscale and Coinbase met with the SEC on March 6 to address concerns about the conversion of Grayscale’s Ethereum Trust into a spot ETF…

Crypto firms Grayscale and Coinbase recently met with United States Securities and Exchange Commission (SEC) officials to discuss a rule change for the launch of spot Ether exchange-traded funds (ETFs). 

Grayscale is seeking to convert its Ethereum Trust – which tracks the market price of Ether – into an ETF, similar to the conversion of its Bitcoin Trust to an ETF in January. The meeting, held on March 6, followed the end of the commenting period for the proposal and addressed concerns about possible market manipulation should the fund be approved.

According to a presentation shared by the SEC, Coinbase argued that the same reasoning that led to the approval of Bitcoin ETFs should be applied to Ether since the token has “mechanisms that significantly limit ETH’s susceptibility to fraud and manipulation.”

Presentation by Coinbase on March 6. Source: SEC

Another presentation point relates to Coinbase’s surveillance-sharing agreement with the Chicago Mercantile Exchange (CME). The mechanism was implemented for Bitcoin ETFs at the request of the SEC to improve trading monitoring.

Coinbase also emphasized the correlation between Ether futures and spot markets, similar to the Bitcoin market, noted Nate Geraci of ETF Store on X.

“Add-in that SEC approved CME-traded Ether futures ETFs and I’m not sure what grounds for disapproval of spot Ether ETFs would be.”

Grayscale is also proposing a second ETF for Ether futures trading. The main difference between spot and futures markets is that spot market assets are traded immediately, whereas, in the futures market, contracts are made to buy or sell assets at a future date for a specific price.

Some analysts have suggested that Grayscale may be using its futures ETF application as a “trojan horse” to corner the SEC into approving its spot Ether ETF.

Several asset managers, including Invesco, Galaxy Digital, Fidelity, Franklin Templeton and BlackRock, are seeking the green light for a spot Ether ETF. Final deadlines for an SEC decision are expected in May.

Bloomberg’s Eric Balchunas believes asset managers are still in the dark about regulators’ views on the crypto investment vehicle. “Normally I’d say this was [a] good sign but as far as I know the Staff has not given any comments yet to the issuers, which is not a good sign as we past when they gave comments on BTC ETFs,” Balchunas said.

Tyler Durden
Mon, 03/11/2024 – 15:40

Saudi Aramco Hikes 2023 Dividend To $98 Billion Despite Lower Profit

Saudi Aramco Hikes 2023 Dividend To $98 Billion Despite Lower Profit

In what may be an early signal that the cadence of “unexplained” oil supply-linked terrorism incidents is about to see a significant increase (wink wink), on Sunday, Saudi oil giant Aramco raised its total 2023 dividend payment by 30% to nearly $98 billion, assuring that Saudi Arabia continues to receive record income from its golden, or rather oil black, goose….even as the world’s largest oil firm by both production and market capitalization reported a 25% drop in earnings for 2023 due to lower oil prices, OilPrice reported.

The Kingdom has been restricting output by around 1.5 million barrels per day (bpd) for the better part of last year—500,000 bpd from cuts by several OPEC+ members that began in May 2023, and another 1 million bpd in extra voluntary production restrictions the Saudis started implementing in July 2023.

As a result of the Saudi production cuts and the lower oil prices in 2023 compared to 2022 when the Russian invasion of Ukraine sent crude to above $100 per barrel, Aramco reported a 25% decline in its net income—to $121.3 billion for 2023, down from a record-high of $161.1 billion for 2022.

Reduced refining and chemicals margins also contributed to the lower income, the Saudi oil giant said.

The slump in profits—which nevertheless were the second-highest ever—didn’t deter Aramco from significantly boosting its dividend payouts to shareholders, the biggest beneficiary of which is the Kingdom of Saudi Arabia, as it owns about 98% in the oil giant via direct ownership and the sovereign wealth fund.

Last year, Aramco paid as much as $97.8 billion in total dividends, a 30% jump compared to the 2022 dividend payout. The company’s board declared a 4% annual increase in Q4 2023 dividend to $20.3 billion and a 9% increase in the performance-linked dividend to $10.8 billion, compared to two payments of $9.9 billion in the second half of 2023.

In August last year, the oil giant said it would calculate the first performance-linked dividends based on the combined full-year results of 2022 and 2023, to be distributed over six quarters starting from the third quarter of 2023.  

Total full-year performance-linked dividend to be paid in 2024 is expected to be $43.1 billion, including the $10.8 billion in Q1, based on the previously announced mechanism and subject to Board approval, Aramco said.

Last year’s capital investments rose by 28% to $49.7 billion, while 2024 capital investments are expected to be between $48 billion and $58 billion.

Overall capital investment between now and 2028 is set to shrink by about $40 billion due to the Kingdom’s directive to Aramco in January to stop work on expanding its maximum sustainable capacity to 13 million barrels per day, instead keeping it at 12 million bpd. 

Capital expenditures will thus be lower than previously planned, “mainly from deferral of projects not yet commissioned and reductions in infill drilling,” the Saudi firm said.

“The recent directive from the government to maintain our Maximum Sustainable Capacity at 12 million barrels per day provides increased flexibility, as well as an opportunity to focus on increasing gas production and growing our liquids-to-chemicals business,” said Aramco president and chief executive Amin Nasser.

“At the same time, we continue to make progress on several strategic crude oil increments which will contribute to our reliability, operational flexibility and ability to seize market opportunities.”

Progress continues on the Marjan, Berri, Dammam, and Zuluf crude increment projects, Aramco said.

As the world’s largest oil firm bets on continued demand for oil and gas, Saudi Aramco is also rewarding its main shareholder – the Kingdom of Saudi Arabia – with billions of U.S. dollars in dividends, adding to the massive revenues from oil that the state receives.

The state and the Public Investment Fund (PIF), the sovereign wealth fund, are getting the lion’s share of dividends, as they jointly control 98% of Aramco.

The dividend hike last year is not only a boon to Saudi state finances. It could also be a move to attract potential new shareholders in a future new share sale, which Aramco is said to be considering. 

Tyler Durden
Mon, 03/11/2024 – 15:20

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%. 

The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the “really smart folks” are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.

Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.

We find the rent expectations surprising because it is happening just asking rents are rising across the country.

At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.

Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. “The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%.”

Mean unemployment expectations – or the mean probability that the U.S. unemployment rate will be higher one year from now – decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.

Turning to household finance, we find the following:

  • The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
  • Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
  • Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
  • The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
  • Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
  • The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
  • At the same time, perceptions and expectations about credit access turned less optimistic: “Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago.”

Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months

Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021… which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.

Tyler Durden
Mon, 03/11/2024 – 12:40

Passengers Boycott Boeing “Death Traps” With Use Of Kayak Plane Filter

Passengers Boycott Boeing “Death Traps” With Use Of Kayak Plane Filter

We penned a note on Saturday, recapping last week’s surge in aviation incidents across the US. The spike in mishaps appears concentrated on Boeing jets, from a midair engine fire to a tire separating from the landing gear to another landing gear issue. We asked if this was sabotage or just shoddy maintenance

Consumers quickly realize, especially after January’s midair door plug blowout incident on an Alaska Airlines flight involving a Boeing 737 Max 9 jet, that Boeing planes are flying “death traps.” 

In recent weeks, the online travel booking website Kayak has seen a noticeable uptick in users who are filtering out Boeing planes for Airbus when searching for flights, according to ABC News

We suspect this Kayak feature will spike in usage after this past week’s aviation incidents:

“If you know what’s happening with Boeing and don’t wanna fly on those death traps book your tickets on Kayak. They let you eliminate Boeing flights in your searches so you can stick to safer planes like Airbus,” one X user said. 

And the boycott of Boeing planes for commercial travel is taking off: 

Meanwhile, Airbus is outselling Boeing, as the Federal Aviation Administration capped production at the troubled plane maker due to quality control issues. 

A recent Al Jazeera hidden camera report into Boeing’s South Carolina facility, which builds the 787s, reveals workers wouldn’t fly on the very own planes they produce, citing quality control issues. 

Furthermore, Boeing’s largest labor union, the International Association of Machinists and Aerospace Workers, has called for a 40% pay increase over the next three to four years. 

Before the pay increase, Boeing and the union should consider a performance-based bonus for workers on quality control metrics—or perhaps no bonus at all. 

Tyler Durden
Mon, 03/11/2024 – 12:20

The Grinch Who Stole Freedom

The Grinch Who Stole Freedom

Authored by Jeffrey A. Tucker via The Epoch Times (emphasis ours),

Before President Joe Biden’s State of the Union address, the pundit class was predicting that he would deliver a message of unity and calm, if only to attract undecided voters to his side.

President Joe Biden delivers the State of the Union address in the House Chamber of the U.S. Capitol in Washington, D.C., on March 7, 2024. (Mandel Ngan/AFP/Getty Images)

He did the opposite. The speech revealed a loud, cranky, angry, bitter side of the man that people don’t usually see. It seemed like the real Joe Biden I remember from the old days, full of venom, sarcasm, disdain, threats, and extreme partisanship.

The base might have loved it except that he made reference to an “illegal” alien, which is apparently a trigger word for the left. He failed their purity test.

The speech was stunning in its bile and bitterness. It’s beyond belief that he began with a pitch for more funds for the Ukraine war, which has killed 10,000 civilians and some 200,000 troops on both sides. It’s a bloody mess that could have been resolved early on but for U.S. tax funding of the conflict.

Despite the push from the higher ends of conservative commentary, average Republicans have turned hard against this war. The United States is in a fiscal crisis and every manner of domestic crisis, and the U.S. president opens his speech with a pitch to protect the border in Ukraine? It was completely bizarre, and lent some weight to the darkest conspiracies about why the Biden administration cares so much about this issue.

From there, he pivoted to wildly overblown rhetoric about the most hysterically exaggerated event of our times: the legendary Jan. 6 protests on Capitol Hill. Arrests for daring to protest the government on that day are growing.

The media and the Biden administration continue to describe it as the worst crisis since the War of the Roses, or something. It’s all a wild stretch, but it set the tone of the whole speech, complete with unrelenting attacks on former President Donald Trump. He would use the speech not to unite or make a pitch that he is president of the entire country but rather intensify his fundamental attack on everything America is supposed to be.

Hard to isolate the most alarming part, but one aspect really stood out to me. He glared directly at the Supreme Court Justices sitting there and threatened them with political power. He said that they were awful for getting rid of nationwide abortion rights and returning the issue to the states where it belongs, very obviously. But President Biden whipped up his base to exact some kind of retribution against the court.

Looking this up, we have a few historical examples of presidents criticizing the court but none to their faces in a State of the Union address. This comes two weeks after President Biden directly bragged about defying the Supreme Court over the issue of student loan forgiveness. The court said he could not do this on his own, but President Biden did it anyway.

Here we have an issue of civic decorum that you cannot legislate or legally codify. Essentially, under the U.S. system, the president has to agree to defer to the highest court in its rulings even if he doesn’t like them. President Biden is now aggressively defying the court and adding direct threats on top of that. In other words, this president is plunging us straight into lawlessness and dictatorship.

In the background here, you must understand, is the most important free speech case in U.S. history. The Supreme Court on March 18 will hear arguments over an injunction against President Biden’s administrative agencies as issued by the Fifth Circuit. The injunction would forbid government agencies from imposing themselves on media and social media companies to curate content and censor contrary opinions, either directly or indirectly through so-called “switchboarding.”

A ruling for the plaintiffs in the case would force the dismantling of a growing and massive industry that has come to be called the censorship-industrial complex. It involves dozens or even more than 100 government agencies, including quasi-intelligence agencies such as the Cybersecurity and Infrastructure Security Agency (CISA), which was set up only in 2018 but managed information flow, labor force designations, and absentee voting during the COVID-19 response.

A good ruling here will protect free speech or at least intend to. But, of course, the Biden administration could directly defy it. That seems to be where this administration is headed. It’s extremely dangerous.

A ruling for the defense and against the injunction would be a catastrophe. It would invite every government agency to exercise direct control over all media and social media in the country, effectively abolishing the First Amendment.

Close watchers of the court have no clear idea of how this will turn out. But watching President Biden glare at court members at the address, one does wonder. Did they sense the threats he was making against them? Will they stand up for the independence of the judicial branch?

Maybe his intimidation tactics will end up backfiring. After all, does the Supreme Court really think it is wise to license this administration with the power to control all information flows in the United States?

The deeper issue here is a pressing battle that is roiling American life today. It concerns the future and power of the administrative state versus the elected one. The Constitution contains no reference to a fourth branch of government, but that is what has been allowed to form and entrench itself, in complete violation of the Founders’ intentions. Only the Supreme Court can stop it, if they are brave enough to take it on.

If you haven’t figured it out yet, and surely you have, President Biden is nothing but a marionette of deep-state interests. He is there to pretend to be the people’s representative, but everything that he does is about entrenching the fourth branch of government, the permanent bureaucracy that goes on its merry way without any real civilian oversight.

We know this for a fact by virtue of one of his first acts as president, to repeal an executive order by President Trump that would have reclassified some (or many) federal employees as directly under the control of the elected president rather than have independent power. The elites in Washington absolutely panicked about President Trump’s executive order. They plotted to make sure that he didn’t get a second term, and quickly scratched that brilliant act by President Trump from the historical record.

This epic battle is the subtext behind nearly everything taking place in Washington today.

Aside from the vicious moment of directly attacking the Supreme Court, President Biden set himself up as some kind of economic central planner, promising to abolish hidden fees and bags of chips that weren’t full enough, as if he has the power to do this, which he does not. He was up there just muttering gibberish. If he is serious, he believes that the U.S. president has the power to dictate the prices of every candy bar and hotel room in the United States—an absolutely terrifying exercise of power that compares only to Stalin and Mao. And yet there he was promising to do just that.

Aside from demonizing the opposition, wildly exaggerating about Jan. 6, whipping up war frenzy, swearing to end climate change, which will make the “green energy” industry rich, threatening more taxes on business enterprise, promising to cure cancer (again!), and parading as the master of candy bar prices, what else did he do? Well, he took credit for the supposedly growing economy even as a vast number of Americans are deeply suffering from his awful policies.

It’s hard to imagine that this speech could be considered a success. The optics alone made him look like the Grinch who stole freedom, except the Grinch was far more articulate and clever. He’s a mean one, Mr. Biden.

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

Tyler Durden
Mon, 03/11/2024 – 12:00

How Shadowy Network Of NGOs Supplies Mega-Corporations With Migrants To Exploit Cheap Labor

How Shadowy Network Of NGOs Supplies Mega-Corporations With Migrants To Exploit Cheap Labor

One week ago, we wrote a note describing how illegals are obtaining jobs through a federal government loophole enabled by the Biden administration as they await deportation proceedings. This caught the attention of Elon Musk, who said, “Wow, learn something new every day.” 

Now, we’re revealing how corporate interests have become deeply interconnected with immigration through a non-governmental organization called Tent Partnership for Refugees. This NGO comprises more than 400 major multinational companies committed to hiring “refugees.” 

Several NGO partnerships with mega corporations include RedRoof Inn, Royal Farms, Shopify, CSX, Delta Airlines, DoorDash, Etsy, and even Bloomberg. 

The NGO’s relationships run deeper than mega-corporations, in fact, all the way up to the Biden administration. 

In December of 2022, US Secretary of State Antony Blinken signed a memorandum of understanding with Tent Partnership to “expand economic opportunity for refugees” in the private sector. 

Since the Biden administration opened the floodgates, 10 million illegal immigrants invaded the nation. The NGO serves as an extension for mega-corporations to exploit cheap labor.

Since the summer of 2018, there has been zero job creation for native-born workers… 

… and that since Joe Biden was sworn into office, most of the post-pandemic job gains the administration continuously brags about have gone foreign-born (read immigrants, mostly illegal ones) workers.

This leads us to a Bloomberg report showing how meatpacker Tyson Foods Inc. is set to hire tens of thousands of migrants via Tent Partnership. Tyson already employs 42,000 migrants among its 120,000 US workforce. 

“We would like to employ another 42,000 if we could find them,” said Garrett Dolan, who leads Tyson’s efforts to eliminate employment barriers such as immigration status. 

“We’re recognizing there’s not a lot of people that are going to be working labor-manufacturing jobs that are American,” Dolan said, adding a large portion of new hires “are going to come from refugees and immigrants, so we’re now in the business of strategically thinking that through.”

In addition to efforts to influence elections and the Census through the influx of illegals, Democrats and their shadowy network of NGOs are pumping migrants to mega corporations, enabling the billionaires to exploit cheap labor. 

Tyler Durden
Mon, 03/11/2024 – 11:40

Expect Another Surge In Food Prices Fueled By ‘Dynamic Pricing’

Expect Another Surge In Food Prices Fueled By ‘Dynamic Pricing’

Authored by Mike Shedlock via MishTalk.com,

Restaurants are moving towards dynamic menu prices. Expect big surcharges for peak times. Don’t expect off peak prices to drop much. Labor costs are rising too.

CPI food indexes prices, data from the BLS, chart by Mish

Surge Pricing Is Coming to You

Restaurants are experimenting with surge pricing to deal with peak hours and staffing demand. They like it. You probably won’t.

The Wall Street Journal reports Surge Pricing Is Coming to More Menus Near You

Restaurants like San Diego-based Cali BBQ are experimenting with a form of the dynamic pricing long used by airlines, hotels and ride-hailing services. Technology providers are pitching services that enable restaurants to change prices weekly or monthly, increasing or slashing the cost of a taco or sandwich between a few quarters to several dollars, depending on demand and sales patterns.

Dynamic pricing—charging higher rates at peak times and dropping them at slower ones—has become commonplace in industries such as e-commerce, and mobile apps have made it easier for companies to study consumers’ buying and browsing and quickly adapt. Rising costs in recent years have led more retailers to implement it.

Restaurants are experimenting with the technology as the industry looks for ways to boost sales and increase profits. Many restaurants increased menu prices as labor, food and other costs have soared since 2021.

Wendy’s drew public scrutiny after the burger chain said in a mid-February earnings call that it was looking to test dynamic pricing. The chain said it would invest around $20 million in its U.S. restaurants to install digital menu boards by 2025 that could suggest items to customers and present different offerings depending on the time of day.

Other restaurants, particularly sit-down ones, are charging more for prime seats during peak hours. Gene and Georgetti, a historic Chicago steakhouse where Frank Sinatra once regularly dined, in late 2022 implemented dynamic pricing on two booths frequented by celebrity customers. Diners typically pay a $20 fee when they book the booths at busy hours, helping counterbalance the restaurant’s rising expenses, managing partner Michelle Durpetti said.

While some consumers tend to resent surge pricing, as Wendy’s discovered last month, they like happy-hour discounts and other deals at slow times, industry consultants said.

Discount Pricing

People like discounts. But that’s not how it will work.

Instead, prices will go up across the board. Then to get the discount you will have to go off peak. And so on and so forth.

CPI Food Index Levels at Home vs Away percent change from Year Ago

CPI food prices percent change from a year ago, data from the BLS, chart by Mish

Three Major CPI Food Categories Month-Over-Month

CPI food prices percent change from a year ago, data from the BLS, chart by Mish

Month-over-month food prices have bottomed. Expect food prices to put upward pressure on the CPI.

Cheeseburger Prices Soaring

On March 8, I noted Skyrocketing Costs Driving Cheeseburger Prices Up

In January, 59% of small-business owners reported higher labor costs were their biggest source of inflation, according to a survey of more than 425 entrepreneurs conducted for The Wall Street Journal by Vistage Worldwide, a business-coaching and peer-advisory firm.

Concerns Over inflation and Employment

ISM Services weakened slightly mainly due to a contraction in employment and faster deliveries. Prices remain a concern. The report hints at stagflation.

ISM chart and excerpts below by permission from the Institute for Supply Management® ISM®

On March 5, I noted ISM Services Respondents Share Concerns Over inflation and Employment

Price inflation is notable. Prices are up 81 consecutive months. 58.6 percent of respondents say prices rose in February, That’s down from a whopping 64 percent last month.

The report is a mixed bag that hints at stagflation. It does not suggest imminent rate cuts by the Fed.

70 Percent of the CPI Is Sticky

Some prices change frequently, notably gasoline. Most of the CPI changes infrequently. This post takes a look at the Atlanta Fed Sticky price project.

Sticky and Flexible CPI data from the Atlanta Fed, CPI from the BLS, chart by Mish

On February 26, I noted 70 Percent of the CPI Is Sticky, Including Rent, Insurance, Food Away From Home

The year-over-year weakening of the CPI and the Sticky CPI is partly due the fact that the change in trend is itself sticky. However, the price of gasoline appears to have bottomed and perhaps food prices have too.

If so, some of the benefit of lower year-over-year trend in rent may get chewed up by a rise in flexible CPI components.

Finally, for the next few months, the year-over-year comparisons are a bit harder to beat. So even if the monthly rent measures ease from the 0.40 percent 29 month-over-month trend, there may not be much of an improvement in the year-over-year measures.

We Are Not Over the Rainbow

Let’s check in with former Fed Vice-Chair Alan Blinder and his soft landing thesis.

My Hoot of the Day on February 27 was Alan Blinder’s victory prognosis “The Fed Has Reached the Soft Landing Runway”

Hello Toto (Alan Blinder and Jerome Powell)

The tools that worked in 2003 are not what the Fed can rely on here.

Global wage arbitrage is gone. Just in time manufacturing is gone. Union wage contracts are soaring. Home prices are out of sight.

Demographics require more spending on healthcare with fewer workers contributing to Medicare and Social Security.

And that does not address the Fiscal Cliff that Powell Sees but Blinder doesn’t.

A soft landing is now the consensus estimate. I strongly disagree.

Tyler Durden
Mon, 03/11/2024 – 11:21