Does the Bear Market start tomorrow?

Tomorrow, the vaccine mandate for truckers in the US begins. The Canadian border is already affected by the Canada mandate and there is already some pain. Truckers work alone although a small number share driving with wives or other partners. Their exposure to the general public is minimal in their work life. The same mandate by the US will block most Mexican drivers from bringing fresh fruits and vegetables into the US. All three groups of drivers have a low compliance with vaccination. The result will likely contribute to the supply chain crisis, which has only worsened the past few months.

Now, The stock market is showing weakness.

Energy policy has driven up oil, fuel, packaging and gas prices. Transportation costs have skyrocketed. Emission regulations have driven up port costs and delayed transportation; fracturing the supply chain. Vaccine mandates have hit the manufacturing and processing sectors. Legislative policy and COVID spending have artificially inflated the economy. Monetary policy has devalued the dollar and driven even higher inflation.

The mandate will affect 50% of US truckers. Mexican truckers are unknown but Canadian truckers are already demonstrating in Ottawa.

Into this hurricane of stagflation, the fed is going to raise interest rates. The stock market could lose half its inflated value. The NASDAQ is already responding to the storm clouds. Employment is going to start getting really sketchy. Congress will eventually announce their remedy, which will be more spending – and the dollar gets worse.

A market expert is predicting a bear market.

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Scott Atlas’ book, “A Plague Upon Our House.”

I read this book this week and found a good book review in “City Journal,” titled “Three Blind Mice.” Atlas began as an academic neuroradiologist and then transitioned to a 15 year career as a health policy researcher. I did something similar when I was forced to retire at age 55 with an old back injury. I spent a year at Dartmouth learning methodology and biostatistics. I don’t know enough about Atlas’ story to know if he did something similar. Quite a few academic physicians have done similar transitions, especially as they get older.

In Atlas’ case, once he was recognized by the Media, he was immediately denigrated as “a radiologist.” He was also labelled as “not an epidemiologist.” It did not matter that none of the other three MDs on the Task Force was an epidemiologist, either. Atlas was in contact with many epidemiologists who were feeding him data and statistics.

He found the “Three Blind Mice” of Birx, Fauci and Redfield were uninterested in data or the scientific publications he kept bringing to the meetings. Eventually, he gave up going to the meetings. He found Trump receptive and he agreed with Atlas’ program of protecting the high risk population, especially nursing home residents, plus others with pre-existing conditions, one of which has turned out to be obesity. He blames Trump and his team for being afraid to sack Birx who was the one telling all the Governors to lock down their states. As he says in conclusion, “It didn’t matter. They still lost the election.” They feared a firestorm in the press if she was demoted.

Atlas was in despair as they continued to emphasize testing the asymptomatic and neglect the nursing homes where almost 50% of the deaths occurred. The psychological and economic damage from the lockdowns may last for years. Masks are useless and he quotes many studies to prove it. The one study quoted by Birx all along was based on two beauty parlor employees. That was it.

In the end, he quit after the election although Trump wanted him to stay. He continued to communicate by email. He describes the insane abuse he took from the Media and may spend a little too much time on it in the book. Some professors at Stanford (not the epidemiologists) sent out an email letter attacking him for working with Trump.

He has one section about Florida Governor DeSantis who, he writes, was already familiar with the literature and who implemented most of Atlas’ policies on his own. I remember the Media attacking DeSantis when he set up treatment facilities at a large retirement community, accusing him of treating supporters first. He was following the science they ignored in their identity politics frenzy. Florida could have been as big a disaster as New York with their huge senior population. The fact that DeSantis followed the science and not the Media prevented that outcome.

Other books are beginning to come out now but this one seems authentic by an insider. Here is the book at Amazon. I read the Kindle version. The hardcover came out a few days later.

The impending collapse of police departments.

The “Defund the Police” movements in “blue” cities are on the verge of success. Not necessarily in actually defunding or dismantling police forces but in convincing the police officers that their function is obsolete. Evidence #1 is this column by “Jack Dunphy,” a former LAPD officer who now works in a different city.

A vehicle that nearly hit an LAPD cruiser close to the intersection of Lankershim and Burbank Boulevards led police in a pursuit and eventually a standoff at a Valley Village used car dealership.

The suspect pulled into Boktor Motors, located on the corner of Riverside Drive and Colfax Avenue, where he exited his vehicle, threw a traffic cone at officers. He then took off shirt and began doing pushups, before getting up and fidgeting with one of the cars on the lot.

Eventually, the man disappeared into the back of the car dealership. After a time, police left without the suspect.

LAPD told CBSLA that they determined there was no threat to the public and decided to clear the scene without the suspect in custody.

Why would they leave without arresting the offender?

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The Destruction of the US Military

There is an old saying in the military, “Trust No one above O-6” They are all politicians. The Obama years saw more generals retired or relieved than there had been in years. General Carter Ham was one of the notable ones. Wiki sloughs over his relief about Benghazi.

Ham was in overall command of military forces when the September 11, 2012 terrorist attacks were launched on the American consulate and CIA annex in Benghazi, Libya. According to his June 2013 Congressional testimony, Ham chose not to deploy close air support during the attack, based on a lack of situational awareness about the circumstances on the ground. He denied the allegation by some Republicans that President Barack Obama or others in Obama’s administration had ordered him to “stand down” a planned rescue mission that was ready to deploy.

After a 24-month tour of duty[9] as Commander Africa Command, Ham was succeeded by General David M. Rodriguez.[10] General Ham retired in June 2013.[5]

That is one version.

Snopes, of course, insists “All is Well”

The information I heard today was that General Ham as head of Africom received the same e-mails the White House received requesting help/support as the attack was taking place. General Ham immediately had a rapid response unit ready and communicated to the Pentagon that he had a unit ready.

General Ham then received the order to stand down. His response was to screw it, he was going to help anyhow. Within 30 seconds to a minute after making the move to respond, his second in command apprehended General Ham and told him that he was now relieved of his command.

Navy Rear Admiral, former commander of the USS John Stennis Strike Group, Rear Admiral Charles Gaouette was also mysteriously relieved of duty, and all the brass will say is he is “under investigation” for, get this, “inappropriate leadership judgment.”

Just another way of saying that the admiral dared differ with the Administration’s Libya policy and perhaps openly defied Defense Secretary Leon Panetta.

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The Deep State and World War I

I have been reading, actually rereading, a book on the origins of World War I. It is titled “The Sleepwalkers” It is a bit of a revisionist treatment of the topic which has been popularized by Barbara Tuchman and “The Guns of August which lays the blame for the war on Germany. This book does a pretty good job of assigning responsibility to two new culprits, Sir Edward Grey, who is also blamed by Pat Buchanan in “The Unnecessary War.” Buchanan blames Grey and Churchill, which I disagree with. Buchanan goes on to blame Churchill for WWII, as well but I think he has a good argument with Grey about WWI.

What is striking to me on this rereading, is the role of the bureaucracies of several countries. Many know of the willfulness and erratic behavior of Kaiser Wilhelm. His ministers often did not inform him of serious matters, lest he impulsively make them worse. A gross example was “The Daily Telegraph Affair.” In this example, the Kaiser wrote a letter to then English newspaper making some extreme statements. His ministers were horrified.

The Russian Czar was equally erratic and his ministers frequently maneuvered to discourage his role in foreign affairs.

What seems to me to be new insight concerns the English and French bureaucracies. Edward VII had been a Francophile and Germanophobe and had encouraged The Entente Cordiale with France and Russia. Edward died in 1910, leaving his son George V on the throne. George V was new, uncertain and left foreign affairs in the hands of his Foreign Minister Sir Edward Grey. Grey was a quiet, seemingly passive man but he was also a bureaucratic manipulator. He was a Germanophobe and had a collection of like minded men in the foreign office. The worst of the Germanophobes was Eyre Crowe born in Germany and spoke with a German accent but a Germany hater. Grey’s policy was not popular with other Liberals in government so he kept the policy of alliance with France vague right up until 1914. He denied the existence of an alliance with France right up to the declaration of war. As for Crowe:

He is best known for his vigorous warning, in 1907, that Germany’s expansionist intentions toward Britain were hostile and had to be met with a closer alliance (Entente) with France.

Crowe organized the Ministry of Blockade during the World War and worked closely with French President Georges Clemenceau at the Supreme Council at the Paris Peace Conference in 1919.

Lloyd George and Crowe’s rivals in the Foreign Office tried to prevent Eyre’s advancement but as a consequence of his patronage by Lord Curzon, Eyre served as Permanent Under-Secretary at the Foreign Office from 1920 until his death in 1925.

A similar group in France ran the foreign Ministry and was referred to as the “Centrale.” The French government was as unstable as it was before WWII and for the same reasons. Weak parties and weak Foreign Ministers who came and went, often in months not years. The man who was the center of this system was Maurice Herbette. There is very little about this man in English sources. He apparently controlled the Foreign Ministry’s public communications and very nearly caused a war with the Agadir Crisis of 1911.

The point of this discussion of history is that we have a similar situation in this country right now. We have a weak, very weak, president in Joe Biden who is senile and who is being controlled by someone mysterious. The Deep State is a term used to describe the federal bureaucracy and probably includes a network of rich corporatist donors who control the Democrat Party.

The faceless bureaucrats of 1914 botched the crisis the followed the assassination of the heir to the Austro-Hungarian throne. Yes, the Serbian Black Hand created the crisis and there has been much discussion of the competence of the “Three Emperors” who ruled the main belligerents, but the real rulers of these three countries plus republican France were unknown (to the public), unelected bureaucrats who might well have resembled the people running Joe Biden.