RUTHFULLY YOURS

https://issuesinsights.com/2021/05/12/joe-biden-is-turning-out-to-be-a-jimmy-carter-reboot/

Joe Biden was the first senator to endorse Jimmy Carter for president.  Now Biden appears bent on recreating Carter’s disastrous presidency. The parallels are striking.

What characterized Carter’s one-term presidency? Disasters at home and abroad. At home, the country suffered a self-inflicted energy crisis, with gas shortages and long lines. Inflation surged even as unemployment climbed, making the “Misery Index” a household term. Abroad, America’s adversaries sensed Carter’s weakness as Commander in Chief and the world was thrown in chaos – from the Iranian Revolution to the Soviet invasion of Afghanistan.

Carter’s response to these disasters was to tell people to turn down their thermostats. He blamed Americans for what he called a “crisis of confidence.”

What’s happened after just over three months with Biden in the White House?

Both the unemployment rate and the inflation rate have been on the rise and the world is getting more dangerous.

This week, the stock market suffered two days of heavy losses as inflation fears mounted.

Forbes quoted Sophie Griffiths, a market analyst at Oanda, as saying that “The overriding fear is that pandemic stimulus combined with reopening economies will spark a sharp drive high in inflation, forcing central banks to take action, tightening policy and potentially slowing down the economic recovery.”

https://www.realclearpolitics.com/articles/2021/05/12/the_elephant_and_donkey_go_plunging_over_the_cliff_145744.html

In the 19th century, when political parties worried about voters who couldn’t speak English or read campaign flyers, they adopted animal symbols. Despite originally being a symbol of ridicule, the Democratic Party came to embrace its inner donkey. Likewise, the Republican Party grew to love the elephant. It was an easy way to identify their candidates. Today, the elephant and donkey are less-beloved mascots and more like Wile E. Coyote, who continually plummets over the cliff in futile pursuit of the Roadrunner.

The GOP pachyderm took the plunge on Jan. 6. Outgoing President Donald Trump sat unsteadily atop the beast, where he remains, and contributed mightily to losing two Senate seats in Georgia. His behavior after the November election alienated many undecided voters and even some erstwhile supporters. He fumed and fulminated, contested the election results without winning in court, and stampeded GOP congressional leaders over the size of the next round of stimulus checks. His refusal to accept certified vote totals challenged basic constitutional norms. That behavior hurt the candidates he ostensibly backed in Georgia, costing his party its Senate majority. Outgoing Majority Leader Mitch McConnell was furious and said so publicly. Most of his Republican colleagues agreed but remained silent. They knew Trump would retaliate for any criticism and his die-hard supporters would back him.

The giant splat of the elephant hitting the canyon floor was the sound of Republicans losing the upper chamber. That loss has had immense political consequences. It is the dominant fact of Joe Biden’s presidency so far. The only way to moderate his agenda, aside from court decisions, would have been Republican control of the Senate.

With their slender majority, Democrats gained control of all Senate committees and held the sole power to conduct hearings and subpoena witnesses. Since Democrats already controlled the House of Representatives, albeit narrowly, they found themselves in control of both Capitol Hill and the White House. That gave them free rein, something donkeys are unused to, and they used it to reign freely. They proceeded to do exactly what Trump had done after November: gallop at full speed toward the cliff’s edge.

http://www.swtotd.blogspot.com

Recently, while walking around Boone Hall Plantation and Gardens, in Mount Pleasant, South Carolina, my son and his family came across an alligator. They watched it, but wisely did not approach it. Risk aversion can be a wise decision. Seth Klarman, president of Baupost Group once wrote: “In contrast to speculators preoccupation with rapid gains, value investors demonstrate risk aversion by trying to avoid loss.” But as Paul Singer, another wise investor, remarked regarding the role of government in our economy: “…the forces of risk aversion and constant conflict serve to stultify and narrow the range of ideas up for debate.” We must walk the line, avoiding obvious risks, but being unafraid to speak out and take risks. “Security,” wrote Helen Keller, “is mostly a superstition. Life is either a daring adventure or nothing.” Eleanor Roosevelt’s advice: “Do one thing every day that scares you.”

Every day we make hundreds, perhaps thousands, of decisions that involve risk. Many, if not most, are subconscious – standing on one leg to put on our trousers, reaching high for a coffee cup, ignoring the slippery spot on the floor, crossing a street. Do we take the short cut over the mountain, or the longer but safer route? Determining risk is a measurement of success versus failure. In investing, businesses calculate the potential for profit against the possibility of loss, which is why the Biden Administration’s proposal to strip Pfizer, Moderna and Johnson and Johnson of their patent protections for COVID-19 vaccines add risk to all future investments drug companies make in research. If patent protection can be breached, what does that say to those who invest in scientific research, and to those who risk everything in the creative arts, all of which are supposed to be protected by intellectual property rights?

At a time when hesitancy has caused the number of daily vaccinations to decline by almost two thirds, the President, who was fully vaccinated in December, should not have worn a mask when outside and not surrounded by others. Yet he did just that last week when he and his wife left Jimmy and Roslyn Carter’s home. The message: the vaccine does not assure safety. When the FDA ordered Emergent BioSolutions to suspend production of Johnson & Johnson’s single dose vaccine because seven out of seven million vaccinated patients developed life-threatening blood clots, was the risk worth the cost of scaring people off being vaccinated? On Jimmy Kimmel’s show last week, Dr. Anthony Fauci said he was frustrated that nearly 26% of the population won’t get the vaccine, yet he said he would not dine in an indoor restaurant, despite being fully vaccinated. What kind of a message was he sending? Being vaccinated will not eliminate all risk of getting COVID-19, but it greatly reduces it. Responsible leaders lead, not inject fear.