The Morning Sixpack - December 20, 2024
Shutdown Showdown, Bird Flu Strikes Human, Trump Case Chaos, Hydrogen Breakthrough, Amazon Holiday Strike, Inflation Cools.
Johnson Unveils Plan C to Avert Shutdown: House Vote Looms
Speaker Mike Johnson (R-La.) announced a new effort, labeled "Plan C," to prevent a government shutdown, with a House vote expected Friday morning. However, consensus among Republicans remains elusive. “Yeah, yeah, we have a plan,” Johnson told reporters, adding, “We’re expecting votes this morning, so you all stay tuned.” Yet, lawmakers exiting Johnson’s office indicated that agreement on a clear path forward is still lacking. Government funding is set to expire at midnight Friday, putting immense pressure on Congress to act swiftly.
Tensions have mounted as Republicans grapple with internal divisions and last-minute demands, including one from former President Trump to tie a debt ceiling increase to the proposed continuing resolution (CR). While some lawmakers suggested a short-term "clean CR" as a viable option, others remain opposed without guarantees of spending cuts. Rep. Bob Good (R-Va.) stated unequivocally, “I will not vote for a debt limit increase without massive spending cuts and structural fiscal reform.”
As negotiations continue, Johnson is engaging with key figures, including members of the far-right Freedom Caucus and Trump-aligned advisors. The urgency of the situation underscores the difficulty in balancing GOP priorities with bipartisan realities, especially as the Senate and White House signal opposition to tying the debt ceiling to the funding measure. Friday’s vote represents the latest effort to avoid a government shutdown while navigating party divisions and escalating demands.
Source: The Hill
Remember, folks, the English alphabet has only 26 letters. We’re running out of them FAST.
First Severe Human Case of Bird Flu in U.S. Reported in Louisiana
The United States has confirmed its first severe human case of bird flu (H5N1), with a patient in Louisiana hospitalized in critical condition. According to the Centers for Disease Control and Prevention (CDC), the individual likely contracted the virus from contact with sick or dead birds in a backyard flock. This marks a significant shift in exposure risks, as most prior cases involved farmworkers handling infected poultry. “The patient is experiencing severe respiratory illness related to H5N1 infection,” confirmed Emma Herrock, a spokesperson for the Louisiana Health Department.
The CDC is investigating the case, monitoring the patient’s contacts, and providing testing and antiviral treatments as necessary. Dr. Demetre Daskalakis, director of the CDC’s National Center for Immunization and Respiratory Diseases, noted that early genomic analysis suggests the virus is similar to strains circulating in wild birds and poultry in Canada and Washington state. Infectious disease expert Dr. Peter Chin-Hong warned that this case underscores emerging risks: “We’ve been focusing on dairy workers and poultry workers, but an emerging risk is handling dead birds in your backyard.”
While no person-to-person transmission of H5N1 has been documented to date, the case raises concerns about potential mutations that could enable human spread. The CDC maintains that the immediate public health risk remains low. Since its emergence in U.S. wild birds in 2022, H5N1 has led to the deaths of over 123 million birds and shown the ability to spread efficiently among mammals, further fueling concerns about its pandemic potential.
Source: NBC News
Two things: 1. I fear it’s inevitable that human-to-human transmission is right around the corner. I am not a virologist or expert in any way, so YMMV.
2. I heard on SiriusXM this morning, “Every time we elect Caligula, God sends us a plague.” CORRECT.
Fani Willis Removed from Georgia Trump Prosecution Amid Ethics Controversy
In a stunning decision, a Georgia appeals court disqualified Fulton County District Attorney Fani Willis from prosecuting Donald Trump and 14 others in an election interference case, citing her past romantic relationship with Nathan Wade, the lead prosecutor she hired. The court ruled 2-1 that Willis's ties to Wade undermined public confidence in the case, with Judge Trenton Brown stating, “This is the rare case in which disqualification is mandated and no other remedy will suffice to restore public confidence in the integrity of these proceedings.” Although the court stopped short of dismissing the case, the decision complicates efforts to continue the prosecution.
The case, originally targeting Trump and 18 others—including former advisors Rudy Giuliani and Mark Meadows—accused them of orchestrating a scheme to overturn Joe Biden’s 2020 election victory. Four co-defendants have already struck plea deals, but the ruling now sends the case to a state board, which will decide whether to reassign it to another prosecutor. Former Georgia prosecutor Chris Timmons highlighted the unprecedented nature of the ruling: “It’s extremely rare for an entire office to be disqualified. That just doesn’t happen.” Trump’s attorney, Steve Sadow, praised the decision, calling it “well-reasoned and just.”
The ethics concerns stemmed from allegations that Willis and Wade financially benefited from their relationship, including extravagant vacations, claims both denied. The scandal created courtroom drama throughout 2024, with Willis sparring under oath during live televised hearings. While Willis plans to appeal to the Georgia Supreme Court, the case now faces additional legal challenges, including questions about Trump’s presidential immunity and his ability to stand trial during his second term, should he assume office again.
Source: Wall Street Journal
Another failure of justice. We all know there was a conspiracy to overturn the 2020 presidential election. We know it.
Scientists Explore Massive Underground Hydrogen Source: Potential to Power the Planet for Thousands of Years
Researchers at the University of Nebraska are investigating an ancient geological phenomenon—the 1,200-mile Midcontinent Rift—that could hold a groundbreaking solution to global energy needs. This rift, formed over a billion years ago when North America nearly split apart, may be producing vast amounts of natural hydrogen deep underground. “It could be deep enough to be stored, but shallow enough that we can access it,” said project investigator Professor Karrie Weber. If harnessed, this cleaner energy source could power the globe for millennia with minimal heat-trapping emissions.
The Midcontinent Rift stretches from Lake Superior to Kansas, encompassing six states, and contains volcanic rock that may facilitate a chemical reaction between water and minerals, creating natural hydrogen. Unlike conventional hydrogen production, which often relies on fossil fuels, naturally occurring hydrogen eliminates many production-related environmental concerns. A DOE-backed project in Texas is already exploring the use of hydrogen for clean energy, further highlighting its potential.
However, not everyone is convinced. While hydrogen fuel cells produce no pollution, combustion releases nitrogen oxide, a gas linked to respiratory issues. Still, researchers remain optimistic about this natural source of hydrogen, which could bypass production challenges and offer a cleaner alternative to traditional fuels. The Nebraska team’s work, supported by the U.S. Department of Energy, represents a significant step toward understanding this revolutionary energy resource.
Source: Yahoo News
I am confident we will find a way to screw this up. Oh, and the energy companies will grift this to death. As economist Milton Friedman said, “There is no free lunch.”
He wasn’t wrong.
Amazon Workers Strike at Peak Holiday Season: A Bold Stand for Collective Power
Amazon workers are striking at the height of the holiday season, leveraging their collective power during the company’s busiest and most profitable period. Thousands of employees from the JFK8 warehouse in Staten Island and other facilities nationwide have authorized the strike, accusing Amazon of refusing to recognize their union or negotiate a contract. The strike comes after the company missed a December 15 deadline to begin union discussions. JFK8 made history in 2022 as Amazon’s first unionized warehouse, and now 5,500 workers represented by the International Brotherhood of Teamsters are taking a stand.
This action reflects a growing trend among American workers strategically timing strikes to maximize impact. Recent examples include New York Times Tech Guild members walking out on election night and airline workers striking before Thanksgiving. Amazon workers are now following suit, highlighting their demands for higher wages and improved working conditions in the face of high inflation and a tight labor market. Labor expert Jennifer Mattson emphasized, “This is a shining example of workers organizing and becoming bolder in their demands.”
The strike also casts a spotlight on the disconnect between Amazon’s leadership and its workforce. Founder Jeff Bezos, one of the world’s richest individuals, has been a vocal opponent of unionization, and Amazon’s extensive anti-union efforts are well-documented. Amid growing frustration with corporate giants, public sentiment may favor the workers as they challenge one of the world’s largest companies during its most vulnerable time.
Source: Fast Company
I have to admit: “Brotherhood of Teamsters” sends chills down my spine. I bet Bezos is shaking in his Tom Ford boots.
Fed-Favored Inflation Gauge Shows Slower Price Growth, Raising New Questions
The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, rose by only 0.1% in November—its smallest increase in three months and half the rise economists expected. This surprise slowdown marks a break from the gradual upward drift in prices that has challenged the Fed’s efforts to control inflation. Yet, annual inflation ticked up slightly to 2.4%, further distancing itself from the central bank’s 2% target.
The core PCE index, which excludes volatile food and energy prices and is considered the Fed's most reliable predictor of future inflation, also rose just 0.1% last month. However, its annual rate held steady at 2.8%. These results arrived days after the Fed's year-end meeting, during which officials acknowledged the challenges of bringing inflation back to target. Despite concerns about "sticky" inflation, the Fed lowered interest rates again, balancing efforts to tame prices with fears of rising unemployment.
“What I hear more than you would think is, don’t get one-tenth off inflation and break the economy,” said San Francisco Fed President Mary Daly in an interview Friday. As investors digest this cautious approach, markets are bracing for a slower pace of future rate cuts, with no reductions expected before spring 2025. The Fed now plans only two rate cuts in 2025, down from earlier projections of four, signaling a more measured path forward.
Source: MarketWatch
I am an amateur economist-watcher. I have a BA in Economics from UC Davis, where ag econ is real, y’all.
So I say this with zero humility: The Fed has two objectives. One is to keep inflation at bay. The other is to keep Americans in the job force. That said, they probably shouldn’t have finite inflation and unemployment targets. Rather, they should have ranges.
And here are my recommendations. If you’re reading this Chairman Powell, pay attention:
Inflation: 1-3 percent. Anywhere in there, take the day off.
Unemployment: 3-6 percent.
It wasn’t too long ago that 6 percent unemployment was considered “full employment.” So let’s not go nuts, okay?
Bonus story this morning will come in a separate piece. Nude cinema screening. It is exactly what you think. Stay tuned.