thependulumswings

Yes DC, there is a Santa Claus.

“With holidays coming up, you might be wondering if the gifts you plan to buy will arrive on time,” President Biden said from the White House yesterday. “Today we have some good news: We’re going to help speed up the delivery of goods all across America.”

And ole Joe, one of Kris Kringle’s older elves is here to help.  The White House responded to the roughly 66 container ship backlog by finalizing an agreement for the Port of Los Angeles/Long Beach to become a 24-hour, seven-days-a-week operation just like the hours that Santa’s helpers keep this time of the year.

The hope is that nighttime operations will help to break the logjam and get that temporary inflation, which isn’t so temporary, under control.

Want to know a Santa’s secret?  The port has been operating 24/7 for the last 21 days.  Want to know another?   Consumer prices climbed 5.4% from a year ago, the Bureau of Labor Statistics reported Wednesday, way above the Federal Reserve’s 2% target.

Higher energy, food, and shelter costs were prime drivers of price increases in September.   There isn’t too much energy coming into LA’s ports.  And, it accounts for zero shelter cost increases.

Ah, but it’s been said before, and savvy politicians will say it again.  And, again.   Never, ever let a good crisis go to waste.  Alas, the president is trying to use the predicament as a selling point for his policy plans that are undergoing congressional scrutiny.

“We need to take a longer view and invest in building greater resiliency to withstand the kinds of shocks we’ve seen over and over, year in and year out, the risk of a pandemic, extreme weather, climate change, cyberattacks, weather disruptions,” he said.  That’s a mouthful of leftist cookies and milk if we’ve ever heard it.

What’s so weird about this is that Santa and his elves work in the harshest climate of all, the North Pole.  And, we’ve seen over and over, year in and year out that jolly ole Nick guy and his reindeer get to millions of homes, up and down chimneys, and deliver on promises all in one 24 hour window.  That’s a supply chain logistics model to emulate if ever there was one.  And, yet, it doesn’t work this year.  Hmm.

And, lost in all of this is that the ports are but one small piece of the puzzle.  Up and down the supply chain- wages, raw material shortages, manufacturing shortfalls, lack of truck drivers, lack of retail workers, etc all have a role.  Oh, and the government is stuffing money in the stockings hung on the mantle without care.

Rudolph’s red inflation nose is flashing so bright, that the Fed might need to deliver an interest rate lump of coal increase sooner than later.   That, of course, assumes coal is still an allowable fuel source should the Democrats pass the Reconciliation Bill, but we digress.

University of Michigan economist Betsey Stevenson noted on Twitter the “economy is in a very fragile and unprecedented place.”  “No one really knows what’s going to happen,” wrote Stevenson, a former member of the White House Council of Economic Advisers under President Barack Obama.

Maybe Santa could trade in his old, old sleigh. We hear used vehicles are commanding top trade-in dollars these days.

The problem with that is he’d need to buy a pricey new one.

And, those come from China, through the LA port, and are back-ordered until mid-2022 we heard.