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Alaskan Trucking Fleets Promise $150K Driver Salaries Amid Drilling Boom

Alaskan Trucking Fleets Promise $150K Driver Salaries Amid Drilling Boom

By Rachel Premack of FreightWaves

As more drilling and mining projects are approved in Alaska, local trucking fleets are planning to hire drivers around the United States to haul equipment, chemicals and other loads — particularly on its fearsome Dalton Highway, a remote, 414-mile road that connects Fairbanks to oil fields near the Arctic Ocean.

The developments, particularly ConocoPhillips Alaska’s Willow project, have been controversial as they may mar some of Earth’s most remote land. However, for the residents of the United States’ third-least-populated state, the new investments could bring an economic boom that many locals say the state needs. 

The construction of the Trans-Alaska Pipeline System in the 1970s and oil boom of the 1980s transformed Alaska. The pipeline brought in some 70,000 workers and often their families. Many of them stayed; Alaska’s population grew three times as fast as the rest of the country in the 1970s and 1980s. As of 2013, more than half of Alaska’s housing stock was built in those decades. 

Josh Norum, the president of Fairbanks-based Sourdough Express, said the impending explosion in mining and drilling could rival those frothy years. 

“We’re calling it our second pipeline,” Norum said. “(The Trans-Alaska Pipeline) was a huge boom. … We’re comparing that opportunity with this next phase.”

6-figure salaries for Alaskan truck drivers — but the job isn’t for everyone

In response, Alaskan trucking companies are searching for truck drivers to haul equipment — and they’re paying them massive salaries.

Drivers who can tackle the so-called haul road, which is packed with ice in the winter and prone to dust and mud the other three seasons, are in particular demand. 

Norum said Sourdough Express drivers on the haul road earn $95,000 to $120,000, in addition to health care, retirement and paid time off benefits. Compensation has increased by 15% over the past two years. 

Sourdough Express currently employs 85 company drivers in addition to contractors, Norum said, adding that over the next few years the company will add 50 to 100 new drivers. 

Gage Schutte, vice president of freight operations for Alaska West Express, also said the company is looking to add 50 to 100 new drivers to its fleet. According to a federal database, the company currently has 121 drivers.

Alaska West Express increased driver compensation by 11% this year. Each round trip between Fairbanks and Prudhoe Bay on the haul road pays around $1,500, Schutte said. Drivers can expect to make 100 to 115 trips to Prudhoe a year. That means Alaska West Express drivers can earn around $150,000 to $170,000 a year, in addition to benefits.

That might be enticing for truck drivers who are struggling with slumping freight volumes and looking for a well-paid gig. Thousands of trucking authorities have already shut down this year as gigs available for drivers dry up. According to federal data, tractor-trailer drivers earn a median annual wage of around $48,000

However, these aren’t easy jobs. The best conditions on the haul road are in the winter, when temperatures in the negative 20s give the ice-packed highway its best traction. Fall and spring make the road slushy, while summertime means the haul road is dusty or slick with calcium that’s used to make it less dusty. 

Robb Christenson, the director of sales and pricing at Sourdough Express, was a truck driver around his native Alaska for nearly three decades, including some 50 runs on the haul road. He said those loads weren’t easy, but hauling chemicals and heavy equipment near the Arctic Circle was certainly memorable.

“The equipment that you haul you’ve never seen before in your life,” Christenson said. “Being a part of that and doing that, it means something special as well.”

Large sections of the Dalton Highway are gravel. (Photo: Shutterstock)

Safety is the most important feature for these trucking executives. Those at Alaska West and Sourdough said they prefer to hire Alaskan residents. However, there’s such a demand for truck drivers now that they’ll likely have to recruit from the lower 48. 

Schutte said few truck drivers who apply to these haul road driving positions already have haul road experience. Some are able to catch on quicker — for example, those with log trucking experience in the Pacific Northwest.

Jeff Russell, who is the superintendent of maintenance of operations in the Alaska Department of Transportation’s Dalton district, which includes the haul road, can concur that running on this road isn’t for everyone. Drivers stuck in a snowdrift might not be able to get rescued for a day or more. And they’ll need to know how to fix their own trucks — tow trucks aren’t exactly heading up to Prudhoe on a whim. 

“Trying to find personnel that’s willing to take on that challenge is unique,” Russell said, “not just for those who need to maintain the road but for the trucking community who needs to have people that are willing to drive in those conditions. They’re not a dime a dozen. I can tell you that.”

Alaska’s longtime dependence on energy production

Alaska has a complex history with energy exploration and production. The state has long been highly dependent on diesel fuel for heating, transportation and power generation. Fuel is expensive to import.

Oil production drove Alaska’s economic growth in the 20th century. The 1977 completion of the Trans-Alaska Pipeline, which has a carrying capacity of 2.1 million barrels per day (bpd), unlocked more oil production but also depleted Alaska’s oil reserves. Production on Alaska’s North Slope peaked in 1988 at just over 2 million bpd and has fallen more than 75% since then.

Alaska’s oil production has been slowly declining for the past 10 years. Before that, there were two more punctuated periods of sharper decline, from 1988 to 1998 when crude oil production was cut in half from 2 million bpd to 1 million bpd, and another decline from 2004 to about 2011.

It’s easiest to drive on the Dalton Highway in the winter, when the road is packed with ice and has good traction. (Photo: Shutterstock)

Today, the question is whether Alaskan oil production is poised for a rebound that would see it retake the 500,000 bpd mark — approximately 25% of the state’s 1988 peak.

Alaska’s oil production, when multiplied by the price of oil, helps determine the payout amounts for the Alaska Permanent Fund, the annual oil and gas dividend that every person who’s lived in Alaska for longer than 12 months is eligible to receive. That payout has bounced between $1,000 and $2,000 annually, but could see a resurgence if Alaska pumps more barrels in a rich price environment. 

According to the U.S. Energy Information Administration, Alaska North Slope crude fetched $76.62 per barrel in January, a price that was down from recent peaks but still very high compared to the 1980s to 2000s.

A local boon — with international controversy

The $8 billion ConocoPhillips Willow project, approved by the Biden administration in mid-March, represents the largest investment in Alaska energy infrastructure in decades and is projected to produce as much as 200,000 bpd over the next 30 years. ConocoPhillips did not respond to a FreightWaves request for comment.

Oil production on the North Slope could grow by 40%, and ConocoPhillips officials have said that the Willow project’s wells could be used to develop newly discovered fields farther west.

Another project on the North Slope, a joint venture by Australian firm Oil Search and Spain’s Repsol, will invest $2.6 billion to develop the Pikka project, forecast to produce 120,000 bpd by 2026.

While that kind of production growth would have a significant positive impact on the Alaska Permanent Fund payouts to everyday Alaskans, a  renaissance of Alaska’s oil and gas industry would immediately spike demand for construction, oilfield services and transportation jobs in the remote, frigid North Slope, likely raising wages significantly.

Other projects may contribute to that boom as well. A proposed gold mine in southwest Alaska would take three to four years to construct and operate for about 27 years. It would employ hundreds of workers each year.

Alaskan lawmakers, the oil industry, labor unions, trades, Alaska Native groups and some North Slope residents have all rallied behind the Willow project, as The New York Times reported

Climate activists, however, have slammed it as a “carbon bomb.” Burning all of the oil the Willow project would produce would equal 9.2 million metric tons of carbon pollution annually, or 2 million additional cars. Meanwhile, some Alaska Natives say the proposed gold mine could endanger their access to fish and game resources.

Tyler Durden
Sat, 05/06/2023 – 21:30

New Mexico And Florida Most Dangerous States For Pedestrians

New Mexico And Florida Most Dangerous States For Pedestrians

New Mexico and Florida are the most dangerous states for pedestrians in the U.S., according to a report by NGO Smart Growth America. The two U.S. metro areas with the highest average rates of pedestrian deaths are also located in these states. South Carolina, with the top 5 most dangerous metro to pedestrians, is the only other state that counted an annual average of more than 3 pedestrian deaths per 100,000 of population between 2016 and 2020.

As Statista’s Kathraina Buchholz reports, the data shows that states where pedestrians are most often killed in traffic are typically located in the American South and Southwest. Delaware is the only state not following this pattern and is the fifth most dangerous for pedestrians in the nation at almost 2.9 people per 100,000 inhabitants killed on average in recent years. Smart Growth America believes this is because Southern and Southwestern metros are more likely to be designed for cars rather than for a variety of road users. For example, these cities experience more sprawl, which is again linked to more pedestrian deaths.

Infographic: New Mexico and Florida Most Dangerous States for Pedestrians | Statista

You will find more infographics at Statista

According to the source, pedestrian deaths have been climbing steadily in the United States to more than 6,500 people in 2020 – up from around 5,500 in 2015. For 2021, the organization’s preliminary estimate assumes that a record 7,300 people have been killed while walking in the country. This is in line with the Governors Highway Safety Associations’ estimate of a 40-year high of pedestrian deaths that year. The trend did not let off in the first half of 2022, the latest point in time for which data exists.

The study also highlights that older people, poor people and people of color are killed while walking in higher numbers. In the time frame of the study, an average of 4.2 in every 100,000 Native Americans and 3.0 in every 100,000 Black Americans died in such a way every year. In comparison, the average annual death rate in the country was just 1.9 in 100,000 during these years. This is because poorer and marginalized communities most often live close to high-speed roadways and in places with inadequate pedestrian infrastructure.

Tyler Durden
Sat, 05/06/2023 – 21:00

High Levels Of Toxic Metals Found In Widely Consumed Drinks: Study

High Levels Of Toxic Metals Found In Widely Consumed Drinks: Study

Authored by Katabella Roberts via The Epoch Times (emphasis ours),

A new study has found that some commonly consumed beverages such as fruit juice and artificial soda contain levels of toxic metals including arsenic, cadmium, and lead that exceed federal drinking water standards.

A woman shops for frozen foods on an aisle across from sodas and other sugary drinks for sale at a superrmarket in Monterey Park, California, on June 18, 2014. (Frederic J. Brown/AFP/Getty Images)

Researchers from Tulane University, Louisiana, measured 25 different toxic metals and trace elements in 60 soft beverages, including single fruit juice, mixed fruit juice, plant-based milk, artificial soda, and tea.

The drinks were purchased in New Orleans and are commercially available in supermarkets across the United States.

Researchers found that five of the 60 beverages tested contained levels of a toxic metal above federal drinking water standards.

Two mixed juices had levels of arsenic above the 10 microgram/liter standard. Meanwhile, a cranberry juice, a mixed carrot and fruit juice, and an oat milk each had levels of cadmium exceeding the three parts per billion standard.

What Are Arsenic and Cadmium?

Arsenic is a naturally occurring tasteless, colorless, and odorless, chemical element that can be found in the environment, including in food and water, according to the Centers for Disease Control and Prevention (CDC). The element persists in the environment and does not deteriorate.

The  U.S. Environmental Protection Agency (EPA) adopted a 10 parts per billion (ppb), or 10 microgram/liter standard for arsenic in public drinking water in 2001, replacing the old standard of 50 microgram/liter.

However, long-term exposure to high levels of arsenic can result in skin disorders, an increased risk for diabetes, high blood pressure, and several types of cancer, according to the CDC.

Cadmium, meanwhile, is another naturally occurring element used in products such as batteries, pigments, metal coatings, and plastics but also found in plant and animal foods, according to the CDC.

When consumed in large amounts, cadmium can cause stomach issues and when inhaled at high levels, it can lead to lung damage or death. Cadmium is considered a cancer-causing agent.

“Exposure to low levels of cadmium in air, food, water, and particularly in tobacco smoke over time may build up cadmium in the kidneys and cause kidney disease and fragile bones,” the CDC notes.

Fruit Juices, Plant-Based Milks Contain Higher Levels

In total, 7 of the 25 elements measured by researchers in their study exceeded drinking water standards in some of the drinks, including nickel, manganese, boron, cadmium, strontium, arsenic, and selenium, while lead was detected in more than 93 percent of the 60 samples, although the majority contained levels below one part per billion.

The highest level (6.3 micrograms/kg) was found in a lime sports drink, though that is still below standards for drinking water set by the EPA and the World Health Organization.

Overall, mixed fruit juices and plant-based milks, including oat and almond milk, contained higher levels of toxic metals than other drinks analyzed in the study, researchers said.

Researchers did not identify the specific brands they studied but noted that they can be purchased at local supermarkets and retail stores.

The findings of the study, titled, “Toxic metals and essential elements contents in commercially available fruit juices and other non-alcoholic beverages from the United States,” were published in the Journal of Food Composition and Analysis.

Read more here…

Tyler Durden
Sat, 05/06/2023 – 20:30

Prominent Russian Novelist Wounded In Car Bomb Assassination Attempt

Prominent Russian Novelist Wounded In Car Bomb Assassination Attempt

One of Russia’s best-known novelists has been targeted in an apparent attempted assassination near the city of Nizhny Novgorod on Saturday. RIA Novosti is reporting that a native of Ukraine is in custody related to the attack.

Zakhar Prilepin was wounded by a car bomb, which killed his driver. Immediately after the blast he was seriously injured but reportedly conscious, after which a suspect was quickly detained, according to Russia’s Interior Ministry.

Russian writer Zakhar Prilepin in Moscow in 2017, presenting his book “Platoon. Officers and rebels of Russian Literature”. via AFP

“The search for possible accomplices continues,” the government statement said.  “Law enforcement officers are now investigating the circumstances and causes of the incident. Zakhar is OK,” the regional governor said.

Prilepin is not only a contemporary literary giant in Russia, but he’s considered to be very active in support of the Ukraine war, with the BBC and other Western sources describing him as a prominent commentator of ultranationalist politics. He’s a former member of the State Duma and has been very active in conservative political movements within the country.

Further according to BBC, a pro-Ukraine opposition group has claimed responsibility for the attack:

The explosion reportedly took place on a remote road some 80km (50 miles) from the town of Bor. State media said the blogger suffered a concussion and fractured bones.

The partisan group Atesh, which is made up of Ukrainians and Crimean Tartars, claimed it was behind the attack.

“We had a feeling that sooner or later he would be blown up,” they wrote on Telegram. “He was not driving alone, but with a surprise on the underside of the car.”

The group said further it “had been hunting Prilepin since the start of this year.”

A Crimean opposition group “Atesh” –  reportedly associated with the Main Intelligence Directorate of Ukraine, has claimed responsibility in a social media post.

Below is a brief biographical snapshot of Prilepin and some of his novels via Russia’s RT:

After the Western-backed coup in Kiev in 2014, Prilepin emerged as a staunch supporter of the Donetsk and Lugansk People’s Republics, which broke free from Ukraine’s rule and later joined Russia. In 2017, he formed his own volunteer battalion, taking the position of political officer. In late January, the writer’s press service said that Prilepin had signed a contract with Russia’s National Guard and set off for the conflict zone.

Prilepin has also authored several books, most notably ‘The Pathologies’, a novel about the Chechen War, as well as ‘Some Will Not Go To Hell’, describing the hostilities in Donbass.

State media sources have described the explosion as occurring on a highway, with the device having been previously planted underneath the car, and which could have been detonated by remote signal.

It marks the third in a string of assassination operations on Russian soil since the invasion of Ukraine began. In April pro-Kremlin military blogger Vladlen Tatarsky was killed when a bomb detonated inside a St. Petersburg event when he was leading a talk. Moscow has blamed Ukrainian intelligence, as well as pointed the finger to Kiev’s Western backers for providing support for an emerging cross-border ‘dirty war’.

In August the daughter of well-known Russian philosopher and political commentator Aleksandr Dugin was killed in a car bombing. Darya Dugina’s death shocked Russia and grabbed global headlines, setting off speculation that Aleksandr Dugin himself was the likely target. Father and daughter reportedly may have switched cars at the last moment while traveling back from a Russian national festival event outside Moscow.

Tyler Durden
Sat, 05/06/2023 – 20:00

Hunter Laptop Letter Pitched To Ex-Spooks As ‘Debate Talking Point’ To Help Biden

Hunter Laptop Letter Pitched To Ex-Spooks As ‘Debate Talking Point’ To Help Biden

The infamous Hunter Biden laptop letter signed by 51 ex-intel officials was pitched to them by its co-author, Mike Morell, as a way to help Joe Biden with a “talking point” during a crucial debate with Trump, the Washington Examiner‘s Jerry Dunleavy reports.

Hunter Biden smokes crack, source: his laptop

Morell admitted that now-Secretary of State Antony Blinken “triggered” him to write the October 2020 letter, co-authored by he and former senior CIA operations officer Marc Polymeropoulos, suggesting that the Hunter Biden laptop reported by the NY Post was likely Russian disinformation.

The recruitment email from Morell was sent to former intelligence officials and included the laptop letter co-authored by him and former senior CIA operations officer Marc Polymeropoulos as an attachment.

The quoted language from the Morell email, sent on Oct. 18, 2020, was read to the Washington Examiner verbatim and identically by two independent sources who had access to the email.

Morell’s email explained that both he and Polymeropoulos believed Russia was involved in the Hunter Biden laptop stories and that Trump likely planned to attack Biden over the laptop revelations in the upcoming debate. -Washington Examiner

We want to give the VP a talking point to use in response,” Morell wrote in the email.

Morell previously admitted under oath that his involvement in the letter was designed to help Joe Biden “because I wanted him to win the election.”

Mark Zaid, an attorney representing Polymeropoulos and several other laptop letter signers (and ex-ABC Senior News producer James Gordon Meek who was indicted on child porn charges, and who bragged about “getting clearances for guys who had child porn issues,” and who loves hanging out at Disney World alone), told the media last month that “when the draft was sent out to people to sign, the cover email made clear that it was an effort to help the Biden campaign.”

The letter was ultimately signed by 51 ex-intelligence officials, and published October 19, 2020, days before the Trump-Biden debate, and furthered the disinformation that the laptop was the product of Russian disinformation – a narrative which the Biden campaign picked up on and amplified.

“There are 50 former national intelligence folks who said that what he’s accusing me of is a Russian plan. They have said that this has all the characteristics — four, five former heads of the CIA, both parties, say what he’s saying is a bunch of garbage,” said Joe Biden during the debate.

To which Trump replied: “You mean the laptop is now another Russia, Russia, Russia hoax?” Joe Biden replied: “That’s exactly what we’re told.”

Here we go again with Russia,” Trump replied.

Last month it was revealed Morell told House investigators he had no intention to write the laptop letter, but admitted his phone call with Blinken, then a top advisor for Biden’s 2020 campaign, “triggered” him to do so. Morell said it was his “guess” Blinken called him because the future secretary of state wanted it “out” in public that “the Russians were somehow involved.”

House Republicans wrote that the same day of the Blinken-Morell call, Blinken “also emailed Morell an article” published in USA Today which alleged the FBI was examining whether the laptop was part of a Russian “disinformation campaign.” The article was then cited in the laptop letter.

Reps. Jim Jordan (R-OH) and Mike Turner (R-OH) also said Morell received a call from then-Biden campaign chairman Steve Ricchetti after the presidential debate to thank him for “putting the statement out.” -Washington Examiner

The October 2020 letter made numerous suggestions as to Russian involvement in the laptop reporting, arguing “if we are right, this is Russia trying to influence how Americans vote in this election” and expressing “our view that the Russians are involved in the Hunter Biden email issue.”

Emails obtained from Hunter Biden’s laptop implying Joe Biden was receiving 10% of Hunter’s ill-gotten gains.

According to the letter’s authors, the laptop story “has all the classic earmarks of a Russian information operation,” and “our experience makes us deeply suspicious that the Russian government played a significant role in this case.”

As Dunleavy notes, “Konstantinos “Gus” Dimitrelos, a cyber forensics expert and former Secret Service agent, conducted an examination of the laptop for the Washington Examiner last year, concluding “there is a 100% certainty that Robert Hunter Biden was the only person responsible for the activity on this hard drive and all of its stored data” and that “the hard drive is authentic.””

Tyler Durden
Sat, 05/06/2023 – 19:00

Doug Casey On The Debt Ceiling Farce And Why The US Should Declare Bankruptcy

Doug Casey On The Debt Ceiling Farce And Why The US Should Declare Bankruptcy

Authored by Doug Casey via InternationalMan.com,

International Man: The US federal government has raised the so-called debt ceiling 104 times since 1944.

Shouldn’t they call it a debt target instead of a debt ceiling?

Is this whole thing a farce?

Doug CaseyThe situation is completely and irredeemably out of control. It’s a farce. Quite laughable, except for the fact it’s so deadly serious.

Can they reduce the debt ceiling or the amount of debt? Or even slow down its growth at this point? No.

The situation is beyond redemption because most US government expenditures go to pay entitlements—Social Security, Medicare, Medicaid, food stamps, and numerous other types of welfare.

Those things will be very hard to cut at this point; breaking the doggy dishes of millions of corrupted Americans would cause unrest. Plus, the so-called “defense” budget, which mostly supports the military/industrial complex while fomenting conflict. It’s actually much larger than disclosed because it should include $50 billion of foreign aid, the cost of running outrageously large embassies over the world, the CIA, and black budgets of all types.

Meanwhile, all US government agencies are bent on expanding themselves. The bureaucrats who run them realize that if they don’t grow the budget every year, they reduce their chances of going from one GS level to the next. Their success is based upon managing more people and spending more money. Naturally, all these agencies grow like cancers.

As a result, the “debt ceiling” is a fiction. It will stay out of control unless there is a total reorganization of the government—which itself would be risky. And that’s not going to happen until we have a financial catastrophe that leaves absolutely no alternative.

International Man: You have previously stated the US government should default on the national debt.

What are the reasons for that?

Doug CaseyI know it sounds outrageous to propose the US government default on its national debt. Of course, they don’t think it will ever be necessary because, as several high-level government officials have pointed out, they can just print money to pay off the debt.

However, I disagree. What are the reasons for doing something as seemingly catastrophic as defaulting on the debt? I’ll give you at least five. Stick with me. Let’s conduct an outrageous but not unreasonable thought experiment.

First, barring default, future generations of Americans will be turned into serfs to pay off the debt. Profligate people have run up the debt, but everybody’s children and grandchildren are stuck with having to pay it off. That’s simply immoral. If you have any care for the future at all, future generations should be saved from becoming serfs to pay it off.

Second, it would punish the enablers who lend the US government money. People who lend the US government money facilitate it by doing all the stupid and destructive things it does. They shouldn’t be rewarded; they should be punished.

Third, official default is better than the alternative. It’s like a hundred-story building that’s about to collapse. If that’s the case, should you wait until it collapses randomly and unpredictably, or should you have a controlled demolition? It’s not a pleasant alternative, but it’s the better alternative.

Fourth, default would make further borrowing on the part of the US government impossible, at least for a while. It would be exposed as an untrustworthy entity, like the Argentine government, which defaults all the time. People would still idiotically lend it more money, but a default might slow down the rate of increase in the US government’s size.

Fifth, it’s almost necessary that the debt goes away to help de-financialize the US economy. The US is tremendously over-financialized. It’s all about buying, selling, creating, and packaging financial instruments. Government debt, with the help of the Fed, is the actual engine of inflation. Defaulting on the national debt would pave the way for the reinstitution of a sound, redeemable, commodity-based money. People would have to concentrate more on real wealth than phony financial wealth, actual engineering, as opposed to financial and social engineering.

Of course, an objection reasonable people would make is: “If you default on the debt, it’s going to be a catastrophe.”

My answer is that just because all the paper debt of the US government goes away doesn’t mean the real wealth in the world will disappear. The farms, factories, technologies, and the skills of the workers, will still exist. But on a sound foundation. And with some new owners.

Furthermore, I’d point out that the US Government isn’t “we the people.” It’s become a discreet entity with its own interests, like a giant corporation. If it declares bankruptcy, it’s a problem for its employees and clients much more than for you, the taxpayer.

Those are some of the arguments I’d make for defaulting on the national debt. But it’s just a rather academic thought experiment. The powers-that-be will prefer to build the current house of cards higher, probably propping it up with FX controls, Central Bank Digital Currencies, a Social Credit System, much higher taxes, more inflation, price controls, and god knows what else in the years to come.

The default will happen, but more gradually, through the subtle fraud of inflation, which is actually the very worst and most dishonest way to default.

International Man: Paul Krugman and other mainstream economists have proposed the US government issue a trillion-dollar coin to buy up the federal debt.

That “serious” people can put forward such a clownish solution illustrates that it’s all a ridiculous charade.

What is your take?

Doug CaseyWhen you’re using funny money as a substitute for real money, it’s inevitable that soothsayers will come up with ridiculous solutions. Krugman isn’t an economist; he’s a political apologist. And a fool. He doesn’t describe the way the world works, but the way he’d like to make it work—using coercion and fraud, not voluntarism and the market. Every idea he has is so stupid that it’s criminal.

The solution to this problem is to go back to a commodity money. Money should be, once again, just a medium of exchange and a store of value. It could no longer be used as a political football.

And the US government should be cut in size by 50, 75%, or 95%. Who knows how deeply you can cut the size of the US government until you try doing it? But it’s necessary, at least if what’s left of the idea of America is going to survive.

Using commodity money will, itself, greatly downsize the US government. The US State has become a behemoth and a parasite. It’s a far bigger danger to the average American than the Russians, the Chinese, the Iranians, or all of them together. Returning to sound money and a tiny government would make for a more pleasant, prosperous, and safer world—although the process of doing it would be unpleasant for some people.

On the bright side, the only people who will be seriously hurt are the parasites living off the government. I say to hell with the parasites. They should be inconvenienced.

International Man: It’s hard to believe the US government was ever debt-free.

But it happened once—in 1835—thanks to President Andrew Jackson. He was the first and only president to completely pay off the national debt.

Jackson also shut down the Second Bank of the United States, the precursor to the Federal Reserve, the US’s current iteration of a central bank.

It’s unthinkable a modern US president could or would do such things.

Given the practical reality of the world today, where do you see the federal debt going, and what are the implications?

Doug Casey: It was wonderful that Andrew Jackson paid off the national debt, something that Alexander Hamilton, with his warped ideas of economics, sold to the country. But it’s now absolutely impossible to pay off $32 trillion of acknowledged debt, scores of trillions of contingent liabilities, and scores of trillions more of unacknowledged debt.

I’d like to point out that there actually have been previous defaults by the US government. For example, Abraham Lincoln, during the War between the States, defaulted by printing up so-called Greenback currency.

Roosevelt defaulted on the debt by fraudulently devaluing the dollar, raising the price of gold from $20.50 to $35, but only after confiscating it from citizens. That was a default. Then there was Nixon, in 1971, defaulting on the promise to pay foreign governments at $35 gold. Now the dollar is only worth 1/2000th of an ounce of gold.

International Man: Is there any way to turn lemons into lemonade and profit from this situation?

Doug Casey: Let’s not sugarcoat the situation. The real question is how to profit from the collapse of an overextended and corrupt empire.

It makes sense to look at the historical precedent, like the Roman Empire. Was there any way to profit from the collapse of the Roman Empire? Well, some people did, I suppose. But the standard of living collapsed for almost all its residents during the ensuing Dark Ages.

Is there any way to profit from the collapse of Western civilization? That’s so serious that it’s almost like asking whether it’s possible to profit from an asteroid hitting the Earth. The best you can hope to do is insulate yourself as much as possible.

At this point, the best way to be hurt least, or possibly even profit within a very bad scenario, is to own gold, silver, and other commodities. And to improve your skills as a speculator. Remember, most of the real wealth in the world is still going to exist; it’s just going to change ownership.

*  *  *

We’re on the cusp of a global economic crisis that could eclipse anything we’ve seen before. Most people won’t be prepared for what’s coming… That’s precisely why bestselling author and legendary speculator Doug Casey and his team just released this urgent PDF report on how to survive and thrive in this chaotic environment. Click here to download it now.

Tyler Durden
Sat, 05/06/2023 – 18:30

Tennis Legend Martina Navratilova: “Women’s Sports Is Not The Place For Trans Athletes”

Tennis Legend Martina Navratilova: “Women’s Sports Is Not The Place For Trans Athletes”

Authored by Steve Watson via Summit News,

Multi-time grand slam winning tennis champion Martina Navratilova has taken a stand for women’s sports, voicing her objections to trans identified male athletes competing against biological women.

Navratilova pointed to the fact that a trans athlete identifying as a woman, Austin Killips, won the women’s category of the Tour of the Gila bicycle race in New Mexico this week.

Cycling’s governing body, the UCI, defended its transgender policy after Killips won, stating “The UCI acknowledges that transgender athletes may wish to compete in accordance with their gender identity,” and adding “The UCI rules are based on the latest scientific knowledge and have been applied in a consistent manner.”

Last week, Navratilova also called out trans swimmer Lia Thomas for accusing critics of attempting to “hide transphobia” by saying they are feminists.

“NEWSFLASH Lia- it’s not fair,” Navratilova tweeted, adding “We shouldn’t have to explain it to you over and over. Also- stop explaining feminism to feminists….”

Navratilova previously praised the decision by the World Athletics international governing body that it will not allow trans identifying biological males to compete against biological women, calling it a “step in the right direction.”

World Athletics Bans Trans

Despite most of Navratilova’s Twitter feed being leftist fodder, it is peppered with posts that make her stance on trans athletes clear:

OK, cue the mob:

As we have highlighted, cycling is one of the major sports where trans identifying males are cleaning up in the women’s category.

Olympic medalist swimmer Sharron Davies, a staunch campaigner to protect women’s sports, also weighed in on the subject:

Related:

Former Olympian Swimmer Says Trans Hate Mob Has ‘Made My Life Hell’

Swimming’s World Governing Body Slaps Total Ban on Transgender Athletes

Another Sport Bans Trans

*  *  *

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Tyler Durden
Sat, 05/06/2023 – 18:00

California’s Cannabis Market Crashes, Northern Counties Brace For Impact

California’s Cannabis Market Crashes, Northern Counties Brace For Impact

Authored by Travis Gillmore via The Epoch Times (emphasis ours),

California’s cannabis industry is in a free-fall, with some municipalities in the northern part of the state making plans for significantly reduced tax revenues as a result of a collapse in wholesale prices.

A cannabis growing operation in the Santa Ynez Valley northwest of Santa Barbara, Calif., on Aug. 6, 2019. (David McNew/AFP via Getty Images)

Once selling for more than $4,000 per pound, bulk buyers are now shopping in the $300 to $500 range for fresh harvests, according to experts, and some growers reported clearing out their crops for less than $200 per pound for fear of being stuck with product.

The price represents a sharp drop from recent years, according to industry insiders.

“It’s been a steady decline since we got here in 2010, but with the passage of Proposition 64 in 2016, prices accelerated downward quickly,” Rachel Greene, a longtime grower with experience in Mendocino and Humboldt Counties’ cannabis programs, told The Epoch Times. “It was a combination of a lot of people getting in the game and the old corporate warfare model of operating at a loss to drown out the competition.”

Prop. 64—known as the Adult Use of Marijuana Act—was passed by voters and made recreational sales legal, creating the beginning of a regulatory framework to manage the industry.

Legitimate and illegitimate family businesses were severely impacted by the plunge in profits and salability of a once easy-to-move commodity, according to farmers.

Marijuana greenhouses in Carpinteria near Santa Barbara, Calif., on August 6, 2019. (David McNew/AFP via Getty Images)

“I used to pay trimmers $300 to manicure each pound, and now I can’t even sell them for that,” a Mendocino County local who asked to be called Jack, for fear of retaliation, told The Epoch Times. “This was a business that benefited families all over the mountains here, and now there are growers and their helpers looking for work. Nobody knows what to do.”

Farmers are reporting a “perfect storm” of conditions, with inflation causing the cost of doing business to escalate significantly over the last two years, while the saturated market in California has left many growers with few options.

A Purple Candy Cane strain grows in the Mendo Dope/Greenshock Farms garden.

“There were a bunch of pounds composted out here last year, and a lot of hopes and dreams went up in smoke with the crash,” Jack said. “We’re all kind of stunned by how fast it happened, and it’s not just us hurting. Look at all the empty storefronts. We were the lifeblood of this economy.”

Lost Tax Revenues

Plummeting prices are affecting more than just the cannabis market, as rural regions of the state have become reliant on the industry supporting retailers and the taxes generated by increased cashflows in the area.

The city of Ukiah, the county seat of Mendocino, is preparing for an estimated $1 million drop in tax revenues, in part due to the weakened cannabis industry.

Revenues grew steadily year over year until experiencing a dip last year, with the busiest shopping season—the last three months of the year—resulting in a drop of nearly ten percent compared to 2021, according to city records. However, the records don’t specify how much tax revenue was related to cannabis.

This doesn’t make the impacts any less real, as we’re seeing the declines in numerous types of businesses, but they are difficult to measure,” Shannon Riley, deputy city manager for Ukiah, told The Epoch Times.

Garden supply sales were down nearly 13 percent in Ukiah last year, and sales taxes collected overall were down nearly 6 percent in 2022 compared to the year prior, according to HdL Companies—a firm providing audit, operations, and revenue management services to public agencies.

The state experienced 4 percent growth in overall sales tax revenues during the same period.

Compared to other cities in northern California facing tax revenue declines, Ukiah is uniquely positioned in the area, acting as a hub for surrounding communities, with medical facilities and shopping available for thousands of residents not living in the city, according to the deputy city manager.

“Ukiah is very well prepared for this type of adjustment and will continue to plow ahead with major infrastructure projects, street improvements, recreation programming and events, and more,” Riley said.

Other areas have not fared as well, with small towns in Northern California that once experienced a boom-and-bust moment with the loss of the logging industry now going through similar circumstances.

Marijuana plants grow at the Green Pearl Organics marijuana dispensary in Desert Hot Springs, Calif., on Jan. 1, 2018. (Robyn Beck/AFP via Getty Images)

From Boom to Bust

Known as the Emerald Triangle for the region’s renowned cannabis production, the counties of Mendocino, Humboldt, and Trinity grew in population and in economic activity following the passage of Proposition 215 in 1996, the first in the nation allowing for the plant’s medicinal use.

While census data shows modest growth for each county—approximately 11 percent for Mendocino and Humboldt and more than 20 percent for Trinity—in the 27 years since legalization, residents say those numbers don’t account for the actual number of people that moved in.

The discrepancy lies in the pattern of behavior for many who came to the region to set up their operations from other states, yet never registered to get California driver’s licenses, and returned to their home state once the harvest was complete, according to farmers and local authorities.

In addition, from August to November, a sizable number of people traveled into the area in search of work as trimmers and laborers every year.

“It felt like the population doubled, and we’re a small community so it’s easy to notice the newcomers,” Juan Aguilar of Ukiah told The Epoch Times. “For part of the year during grow season, and especially at harvest, we’d have huge crowds in the grocery stores, people all over town.”

Read more here…

Tyler Durden
Sat, 05/06/2023 – 17:30

“AAAAAAAAAHHHH”: Trans Activist Unleashes Primal Scream At SF Board Meeting

“AAAAAAAAAHHHH”: Trans Activist Unleashes Primal Scream At SF Board Meeting

A transgender activist let out several primal screams at a San Francisco Board of Supervisors meeting last week, after SF District Attorney Brooke Jenkins declined to prosecute a Walgreens security guard who shot Banko Brown, a black transgender individual.

Jenkins declared that “the evidence clearly shows that the suspect believed he was in mortal danger and acted in self-defense.”

Activist Lia McGeever voiced their (?) displeasure with an intra-scream diatribe;

“I live in [District 6]. I hate a lot of people on this board… for the reasons that led up to Banko Brown’s death. So, often I prepare something — maybe it’s a little historical, may even be a little poetic, whatever. There’s a lot of performative people on this board who will say one thing and support Black people, homeless people, trans people, and then immediately stab you in the face — being racist, transphobic, anti-homeless.

So I don’t have any words prepared today. I just want you to feel our pain. I don’t know if you can at this point, based off your policy choices, but I have to pretend you have some form of empathy left. So, I am going to spend the next minute screaming cause that is what is going on in here.”

McGeever then gave several primal screams, saying “That is what the trans genocide in this country, in this city, has brought me to.”

As Jonathan Turley writes;

No, that is what an age of rage has brought all of us to.  This entire scream session was due to San Francisco District Attorney Brooke Jenkins announcing that her office would not prosecute Michael-Earl Wayne Anthony, a Walgreens security guard responsible for the shooting death of Banko Brown, a Black member of the transgender community. Jenkins declared that “the evidence clearly shows that the suspect believed he was in mortal danger and acted in self-defense.”

Our politics is now reduced to a collective scream session with zero content beyond pure unadulterated rage.

As I noted earlier, this trend was previously captured by Rep. Jamaal Bowman (D-N.Y.) who is shown on videotape screaming about gun control in the Capitol as his colleagues left the floor following a vote. When Rep. Thomas Massie (R-Ky.) asked Bowman to stop yelling, Bowman shouted back: “I was screaming before you interrupted me” — which could go down as the epitaph for our age.

Tyler Durden
Sat, 05/06/2023 – 17:00

Texas Committee Passes Bill To Create 100% Reserve Gold And Silver-Backed Transactional Currencies

Texas Committee Passes Bill To Create 100% Reserve Gold And Silver-Backed Transactional Currencies

Authored by Michael Maharrey via SchiffGold,

On May 2, a Texas House committee passed a bill to create 100% reserve gold and silver-backed transactional currencies. Enactment of this legislation would create an option for people to conduct business in sound money, set the stage to undermine the Federal Reserve’s monopoly on money, and possibly create a viable alternative to a central bank digital currency (CBDC).

Rep. Mark Dorazio (R) introduced HB4903 on March 10 and it has since garnered a bipartisan coalition of 42 cosponsors. The legislation would require the state comptroller to establish and provide for the issuance of gold and silver specie and also establish digital currencies that are 100% backed by gold and silver, and 100% redeemable in cash, gold, or silver.

Specie is defined as “a precious metal stamped into coins of uniform shape, size, design, content, and purity, suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions.”

In establishing gold and silver specie, the comptroller would be required to authorize the Texas Bullion Depository as issuer and ensure that the holder of the specie may use the specie as legal tender in payment of debt and readily transfer the specie to another person.

The comptroller would also be required to create a mechanism to use 100% backed gold and silver digital currencies in everyday transactions.

In establishing the digital currency under Subsection (a)(2), the comptroller shall provide a means to ensure that a person who holds the digital currency may:

1. Use the digital currency as legal tender in payment of debt; and

2. By electronic means readily transfer or assign the digital currency to another person.

Physical gold and silver backing the digital currency would be stored in a pooled account at the Texas State Bullion Depository.

“The trustee shall maintain enough gold and silver specie or bullion to provide for the redemption of all units of the digital currency issued but not redeemed.”

In practice, individuals would be able to purchase transactional currency representing the smallest fractions of physical gold or silver. The money would be used to purchase gold or silver that would be held in the already-open Texas Bullion Depository. Individuals would be able to redeem their transactional currency for dollars, gold, or silver on demand.

On May 2, the House State Affairs Committee passed HB4903 by a 7-6 vote.

In an outpouring of strong support from the grassroots in Texas, a 78-page document – representing hundreds of messages of support for the bill – was presented to the committee members during a hearing last month.

IMPACT

This is one of several bills introduced in the Texas legislature this year to promote sound money, including legislation to establish state gold and silver reserves, and a bill to make gold and silver legal tender in the Lone Star State.

The creation of state-issued gold-backed and silver-backed digital currencies would create currency competition with Federal Reserve notes and undermine the Fed’s monopoly on money. It would also provide a sound money-backed competitor if the Federal Reserve implements a central bank digital currency.

Broadly speaking, by making gold and silver conveniently available for regular, daily transactions by the general public, gold and silver-backed digital currency would create the potential for a wide-reaching effect. Professor William Greene, an expert on constitutional tender, said in a paper for the Mises Institute that when people in multiple states actually start using gold instead of Federal Reserve notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a ‘reverse Gresham’s Law’ effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes).

“As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

Gresham’s Law holds that “bad money drives out good.”  For example, when the U.S. government replaced silver quarters and dimes with coins made primarily of less valuable copper, the cheap coins drove the silver out of circulation. People hoarded the more valuable silver coins and spent the less valuable copper money. So, how do you reverse Gresham?

The key is in making it easier to use gold in everyday transactions. The reason bad money drives out good is that governments put up barriers to using sound money in day-to-day life. That makes it more costly to spend gold and incentivizes hoarding. When you remove barriers, you level the playing field and allow gold and silver to compete head-to-head with Federal Reserve notes. On an even playing field, gold beats fiat money every time.

CENTRAL BANK DIGITAL CURRENCIES (CBDC)

A gold-backed digital currency would create an alternative and allow individuals and businesses to avoid a CBDC.

Digital currencies exist as virtual banknotes or coins held in a digital wallet on your computer or smartphone. The difference between a central bank (government) digital currency and peer-to-peer electronic cash such as bitcoin is that the value of the CBDC is backed and controlled by the government, just like traditional fiat currency.

At the root of the move toward a CBDC is “the war on cash.” The elimination of cash creates the potential for the government to track and even control consumer spending.

Imagine if there was no cash. It would be impossible to hide even the smallest transaction from the government’s eyes. Something as simple as your morning trip to Starbucks wouldn’t be a secret from government officials. As Bloomberg put it in an article published when China launched a digital yuan pilot program in 2020, digital currency “offers China’s authorities a degree of control never possible with physical money.”

The government could even “turn off” an individual’s ability to make purchases. Economist Thorsten Polleit outlined the potential for Big Brother-like government control with the advent of a digital euro in an article published by the Mises Wire. As he put it, “the path to becoming a surveillance state regime will accelerate considerably” if and when a digital currency is issued.

BACKGROUND

The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” Currently, all debts and taxes in Kansas are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

The Federal Reserve destroys this constitutional monetary system by creating a monopoly based on its fiat currency. Without the backing of gold or silver, the central bank can easily create money out of thin air. This not only devalues your purchasing power over time; it also allows the federal government to borrow and spend far beyond what would be possible in a sound money system. Without the Fed, the U.S. government wouldn’t be able to maintain all of its unconstitutional wars and programs. The Federal Reserve is the engine that drives the most powerful government in the history of the world.

Creating gold and silver-backed digital currencies would take another step in the process of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the state and local levels, and setting the stage to undermine the Federal Reserve monopoly by introducing competition into the monetary system.

WHAT’S NEXT

HB4903 will now move to the Calendars Committee. This committee determines which bills move to the House floor for a vote. Supporters of the bill in Texas have created an online tool to register support for the bill moving to the House for a debate and vote. Residents of Texas can submit their comments here.

Information from the Tenth Amendment Center contributed to this report.

Tyler Durden
Sat, 05/06/2023 – 16:30