Tag: Production

Trump Nixes The DPA

Recently there has been news about the Defense Production Act and its use to fill the void of much needed medical supplies……I helped my readers get on the right page……https://lobotero.com/2020/03/21/what-is-the-defense-protection-act/

Personally, it is a great idea…..gear up the production for much needed supplies….but it appears the the president does not want that to happen…..

President Trump on Sunday rejected calls from governors, hospitals and others to direct companies to ramp up production of critical supplies for the coronavirus fight through the use of the Defense Production Act.

Trump argued that he has used the Defense Production Act (DPA) as leverage in negotiations with companies to get them to produce supplies and equipment for the coronavirus fight.

He also argued against nationalizing industries, though that is not something that would be done through the use of the DPA.

https://thehill.com/policy/healthcare/488938-trump-rejects-calls-to-directly-use-defense-production-act

The news is dire from Italy where about 1400 people died over the weekend and there are predictions that the US is about 10 days behind where Italy is…..and yet the president is still trying to look business and takes victory laps for nothing in particular.

To me Trump looks as out of touch as anyone can be……he still seems to believe that all will return to “normal” in due time.

In this time of dire need……the country needs leadership not some kick the can down the road bullshit…….

President Trump says the US will reevaluate its coronavirus strategy at the end of the month to determine “which way we want to go.” In an all-caps tweet, he wrote: “We cannot let the cure be worse than the problem itself,” without elaborating, reports Reuters. It could be a nod to the sentiment expressed late last week by the conservative editorial board of the Wall Street Journal. The board argued that while an initial shutdown of about two weeks is wise and necessary, a longer break would be catastrophic for US businesses and their employees. “That should be the moment, if not sooner, to offer new guidance on what might be called phase two of the coronavirus pandemic campaign,” the editors wrote.

The 15-day period Trump is referencing began March 16 when he outlined a series of proposals to help stem the spread of the virus. Since then, states have taken initiatives of their own, and now more than 1 in 3 Americans are under stay-at-home orders, reports US News & World Report. That includes those in the states of New York, California, Illinois, Connecticut, New Jersey, Ohio, Louisiana, and Delaware, as well as in the city of Philadelphia. “At the end of the 15-day period, we will make a decision as to which way we want to go!” wrote Trump.

States are showing leadership…..but we need unity and a national leadership….that is what we elected this person to do and he is FAILING on every level.

How many Americans can die in that 15 day period?

Confidence is sinking…..for me it has sunk……

Please…..Stay calm……avoid crowds…..wash hands often…..us bloggers will pass on all info as it comes available….

I Read, I Write, You Know

“lego ergo scribo”

US Loses Influence Over Saudis

For decades, Saudi Arabia worked with its dominant customer, the United States, to keep world oil markets stable and advance common political goals.

But the surging price of oil, which soared more than $10 a barrel Friday to a record-high $138.54, has made it plain that those days are over. New forces, including a weak dollar and an oil-thirsty Asia, have blunted the United States’ leverage and helped sour the two countries’ relationship.

As gasoline prices have risen, the White House has unsuccessfully exhorted the Saudis to step up production, and Congress has threatened retaliation. But the situation now is a far cry from the days when the U.S. economy dominated the direction of the petroleum market.

But the Saudi government has been dismayed by the consequences of the war in Iraq and by what it sees as a weak Bush administration commitment to the Palestinians.

The relationship is shaping up as a political issue for the fall campaign, certainly among congressional candidates and perhaps among presidential candidates.

With a 20-million-barrel-per-day habit, the U.S. remains the world’s largest oil customer, even though its daily consumption over the years has dropped from one-third of total daily production to one-fourth.

But the U.S. can no longer guarantee on its own that producers will have the markets they need for their oil. Nor can the Saudis, alone, ramp up production in sufficient amounts to stabilize prices.

China and other Asian nations now use about 17 million barrels a day. That’s up more than 20% since 2003, and booming growth is expected to continue
The Saudis helped the United States for years as “doves” within the Organization of the Petroleum Exporting Countries on the issue of oil prices. They were willing to moderately increase production, fearing that high prices could cause the United States and others to seek alternate supplies or cut consumption, as happened in the 1980s in reaction to the oil price shocks of the 1970s.

But attitudes have been shifting. Many believe the Saudis have grown more interested in conserving their supplies for later generations, and confident that if U.S. consumption drops, the economies of China, India and others will take up the slack.

By the end of 2007, it was also apparent that the Saudis no longer believed they could substantially affect prices by increasing production. Now, Saudi oil experts believe that the price run-up is due to such factors as investor speculation, the weak dollar and limited output from such key producers as Iraq, Iran and Venezuela.

U.S. lawmakers, meanwhile, have proposed various measures to force the Saudis to boost production. One, sponsored by Senate Democrats, threatens withdrawal of a proposed $1.4 billion in pending arms sales.

All in all, it appears that the Saudis are fed up with Washington and its policies.