Bill Owens: Confounding And Confusing Events 6/14/21

Scientists have uncovered what is known as “blood snow” in the Alps, and are extracting DNA from it.  Blood snow is actually green algae that is one of the most diverse and ubiquitous forms of life on earth.  We see green algae primarily in lakes, it apparently takes different forms in many different environmental settings.  Obviously, as glaciers melt, the ability of this algae to spread and do its work within eco systems is in peril.  A peak into something few of us I suspect knew about or think about is always intriguing.

A joint US and Australian law enforcement operation netted about 800 suspected criminals after they were tricked into using an FBI run encrypted messaging AP.  This allowed law enforcement to monitor the suspect’s chats about drug smuggling, money laundering, and even murder plots.  In the course of these arrests, drugs, weapons, luxury vehicles and cash were seized in more than a dozen countries.  The quantities are staggering, 8 tons of cocaine, 250 guns and more than $48 million in currencies and crypto currencies.  A good day for law enforcement.

The Senate Rules and Homeland Security Committees have been conducting a joint investigation into the events of January the 6^th, and the days leading up to it.  It appears that the Capitol Police had seen prior to January 6^th information from a pro-Trump website that included comments about the Capitol’s tunnel system, and that encouraged demonstrators to bring weapons to subdue members of Congress and police and reverse the Presidential election results, as quoted in an NPR report by Claudia Grisales.  It appears this website encouraged its followers to drag down police and certify the Trump electors, all of which were shared the night before the insurrection.  It is interesting to note to the Capitol Police have stated that they did not receive threat assessment analysis from the Justice Department, nor Homeland Security Departments, which were still run at that time by Mr. Trump. 

The coalition government being created in Israel took office on June 13^th, after a vote of confidence earlier in the day.  It appears that rightwing law makers rebuffed Mr. Netanyahu’s attempts to have them defect from the new coalition.  This is truly a turning point for Mr. Netanyahu, and likely for Israel.

On the Canadian front, we are now getting indications that Canada will ease restrictions at the US border for fully vaccinated citizens.  Prime Minister Trudeau is quoted as saying, “In the weeks to come, we will have more to say about the measures that we could relax for people who have had two doses.” And he is further quoted as saying, “Easing of restrictions will be focused on Canadians who are fully vaccinated.”  This brings us back ultimately to the proof problem, and that is how people will establish that they are fully vaccinated.  Will a vaccination card like I have be satisfactory, or will some other formal documentation be required?  Obviously, if more formal documentation is required, and I can’t see how it couldn’t be, that will create a logistical setback to the opening of the border. 

Canada posted a trade surplus this past month primarily due to chip shortages.  Imports dropped 4.7% overall, and 22.1 percent in shipments of motor vehicles and parts.  The chip crisis, as I have previously pointed out is easy to see when one looks at new car dealerships, and is beginning to have a substantial impact on the broader economy.  The Biden administration announced that it was going to invest $50 billion in an attempt to improve chip manufacturing and is considering entering into a trade agreement with Taiwan which would also increase the potential for shipments of chips into the United States.  We will see how this plays out.

Baseball has a sticky problem as pitchers are dominating this year. The WSJ reports that Spider Tac developed by two “strong men” competitors is being sold in large quantities to MLB teams. This allows a better grip on the ball resulting in sharper breaking sliders and more rotation. We’ll see how the MLB gets a grip on this problem.

The best story of the week was the modern Jonah tale. It’s been reported that a lobster diver was swallowed by a humpback whale and spit out. Sounds pretty wild, but does raise some interesting questions about the accuracy of Bible stories. Maybe at least Jonah’s tale was not midrash.

On the business front, inflation is surging as reported by NPR. The Labor Department reports a 5% jump in consumer prices for the 12 months ending in May which is the sharpest increase in 13 years.  We have noted this before and one of the questions obviously is – has demand jumped so dramatically as a result of the pandemic, and is this a short-lived increase in prices?  It is going to take several months to determine whether or not this is a long-term issue, or rather, a reaction to being cooped up for a year and a half.  

The Wall Street Journal reports that Banks are advising business customers that they prefer not to take additional deposits, and are urging companies to spend money on their businesses.  Bank deposits are continuing to surge as evidenced by the fact that those deposits rose by $411 billion to $17.09 trillion between late March and May 26^th.  While it is slower than last spring, it is four times the average of the past 20 years according to fed data.  The flip side, of course, is that normally lots of cash would be helpful to banks to make loans, but loan demand has slowed which is likely, in part, due to the fact that companies have so much cash.  Why would you borrow if you have cash to make purchases?

A microscopic animal has been extracted from the permafrost in Siberia.  These animals were frozen during the time that Wooley Mammoths roamed the planet, reports the New York Times.  It is fascinating that these rotifers, which are microscopic multicellular creatures with complex anatomies, and are one of the most radiation resistant animals on the planet.  Maybe even more fascinating is that they can come back to life after tens of thousands of years in deep freeze according to a recent study in the journal, “Current Biology”.  These creatures were found in ancient permafrost at a depth of 11 feet where the temperature hoovers around 14° Fahrenheit.  Obviously, tough little fellows, or gals. 

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