The temperature at Inner Drive Technology World HQ has passed 32°C (with a 42°C heat index!) and it keeps going up. Welcome to the summer heat advisory season, with 30 million hectares of maize corn sweating to our west.
Speaking of an uncomfortable atmosphere, the OAFPOTUS and his droogs have had a bad couple of days, which they responded to by making everyone else's days bad as well.
First, on yesterday the US Court for the District of New Jersey declined to allow acting US Attorney Alina Habba (whom you may recall for her previous ethical difficulties) to take the post as a permanent appointment. Instead, the Court ordered her deputy, Desiree Leigh Grace, to step in as acting USA, as Grace has years of experience as a prosecutor and no obvious disqualifications. In response, US Attorney General Pam Bondi fired Grace:
Desiree Leigh Grace, Habba’s first assistant, was tapped by the U.S. District Court for the District of New Jersey to lead the office upon the expiration of Habba’s 120-day temporary term. But, Tuesday, Grace was “removed” from the post by the Justice Department (DOJ).
Attorney General Pam Bondi said, “politically minded judges refused to allow [Habba] to continue in her position.”
It's not clear how many acting US Attorneys the OAFPOTUS will have to appoint before the Court decides that one of them is competent enough to stick around more than 120 days. Meanwhile, the USA's office in New Jersey is in absolute shambles—which is a side-benefit for the OAFPOTUS and his cronies as many of them have property or offices in the state.
Also yesterday, the OAFPOTUS announced a "deal" with Japan that sets bilateral import taxes at 15%, compared with basically 0% before he started ripping up the global trading system. Paul Krugman patiently explains how this "deal" will make things so much worse than before:
As I and others have repeatedly pointed out, there’s some basic arithmetic linking international investment and the trade balance. A few technical details aside,
U.S. trade deficit = Net foreign investment in the United States
This isn’t a theory, it’s just accounting. So if the deal leads to more investment in the U.S., it must, necessarily, lead to a bigger trade deficit.
So why aren’t we seeing big increases in consumer prices yet? Basically because for the moment U.S. businesses are absorbing much of the cost rather than passing it on to consumers. They’ve been able to do that partly because many companies rushed to bring imports in before the tariffs hit, and are still selling out of that inventory. They’ve been willing to do that because they don’t want to alienate customers and lose market share, and have been hoping that the tariffs will mostly go away.
But if Japan still faces a 15 percent tariff after making a deal, that hope will soon fade. Winter Inflation is coming.
Update: Friends have been pointing out that this deal means that Japanese cars will pay 15 percent tariffs, while US car producers will still be paying 50 percent on imported steel. Not exactly a strategy to boost manufacturing. What were they thinking? They probably weren’t thinking.
Of course, the main point of all these tariffs is to further the massive theft of American wealth that is the point of the entire Republican project these days. As Krugman says, "We’re already well on the way toward an economy in which success in business depends not on how good your product is but on your political influence."
Just don't call them stupid. They wouldn't like it.