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    6/21/22: Russia vs NATO, Gas Prices, Hillary Comments, Lorenz Demoted, TikTok Lies, Economic Shift, French Elections, & More!

    enJune 21, 2022

    Podcast Summary

    • Effective all-natural supplements, affordable theme park tickets, and geopolitical tensionsCompanies offer solutions for health, budget, and global issues, impacting everyday life and international relations

      SYMBIONICA offers effective, all-natural supplements made from premium plant-based ingredients, free from seed oils, fillers, and toxins. State Farm, as a good neighbor, aims to help individuals financially unlearn limiting beliefs and achieve financial freedom. Undercover Tourist provides affordable adult theme park tickets at child prices for a more budget-friendly Disney experience. Meanwhile, tensions between Russia and Lithuania over goods transit to Kaliningrad have escalated, with Russia threatening retaliation and Lithuania defending EU sanctions. This situation, while complex, directly impacts the security of the United States due to Lithuania's membership in both the EU and NATO.

    • Russia-Lithuania Tensions Over Cargo Transit to KaliningradRussia threatens retaliation against Lithuania for implementing EU sanctions, leading to a partial blockade of goods to Kaliningrad. NATO members are concerned about potential flashpoints and escalation.

      The situation between Russia and Lithuania over cargo transit to the Kaliningrad region has escalated to a dangerous level, with Russia threatening retaliation if the issue is not resolved. Lithuania, a NATO member, is implementing EU sanctions, leading to a partial blockade of goods to Kaliningrad. Russia views this as an attack on its sovereignty and has responded with rhetoric and threats. The situation has implications for all NATO members and raises questions about potential flashpoints and escalation. NATO chief Jens Stoltenberg has warned that the war in Ukraine could last for years and called for continued support for Ukraine despite the costs.

    • Economic Consequences of Russia-Ukraine Conflict and Western SanctionsThe ongoing conflict and sanctions have led to soaring gas prices, electricity costs, and record-breaking profits for Russia, while causing austerity for Western populations and vulnerable communities.

      The ongoing conflict between Russia and Ukraine, coupled with Western sanctions against Russia, has led to significant economic consequences for both the European Union and the United States. Gas prices in Europe have skyrocketed due to energy shortages caused by Russian pipeline cuts and the explosion of an LNG export hub in the US. These events have resulted in a 17% increase in electricity prices in Europe in just one day. The sanctions imposed by the West have also backfired, with Russia generating record-breaking oil profits and becoming the largest supplier of oil to China and India. Meanwhile, ordinary Russians are being rallied to Putin's side as they feel the West is out to get them. The sanctions have caused austerity for Western populations and vulnerable communities around the world, while Putin and his cronies continue to prosper. The question is, what is the point of continuing with the same approach when it's not working and causing harm to Western populations? At this point, it's unclear what the benefits are.

    • A complex proxy war between US and RussiaRussia's military progress, economic warfare, and Putin's popularity fuel the ongoing conflict with the US, which could last for years

      The ongoing conflict between Russia and Ukraine is a complex and evolving situation that goes beyond just military tactics and casualty numbers. It's a proxy war between the US and Russia, with each side trying to gain leverage for future negotiations. Russia's strategy involves rebuilding its military capabilities and making steady progress in Eastern Ukraine, while also engaging in economic warfare through food blockades and cutting off natural gas supplies to gain leverage. The economic sanctions imposed by the US and its allies have had the opposite effect of what was intended, strengthening Putin's hand and allowing him to paint himself as a strong leader returning Russia to its imperial ambitions. The domestic population in Russia continues to support Putin, making it difficult for the opposition to gain traction. Putin's mocking of President Biden and the West is a way to rally his population and further solidify his position. The conflict is expected to last for years, and the outcome remains uncertain.

    • Putin Confident in Russia's Ability to Weather Economic SanctionsPutin believes sanctions have minimal impact on Russia's economy and regime, while criticizing EU for damaging its own economy and sovereignty. Conflict in Ukraine and global inflation persist, increasing desperation and potential for nuclear conflict.

      Russian President Vladimir Putin appears confident in Russia's ability to weather economic sanctions imposed by the European Union and the United States. Putin claimed that the sanctions have not significantly harmed the Russian economy or regime, and he criticized the EU for damaging its own economy with the sanctions. He also accused the EU of losing its political sovereignty and ignoring the interests of its own people. Putin's confidence comes despite ongoing conflict in Ukraine and rising global inflation caused in part by the sanctions. The longer the conflict continues, the more desperate global populations may become, particularly in regions already decimated by climate crisis and food shortages. The US, under President Biden, has focused on addressing Putin's price hike, but Putin seems unfazed by the messaging and continues to advance militarily in Ukraine. A negotiated settlement to the conflict could help alleviate inflation and avoid a potential nuclear conflict with Russia. However, the US and EU's messaging about the sanctions may need to shift to be more effective in putting pressure on Putin.

    • Media coverage disparity between Russia-Ukraine and Iraq conflictsThe New York Times covered the Russia-Ukraine conflict more extensively than the U.S. invasion of Iraq, despite the direct impact of the Iraq invasion on American citizens, raising questions about media bias and priorities.

      The media's coverage of the Russia-Ukraine conflict and the U.S. invasion of Iraq has been significantly disparate. While The New York Times devoted 44% of its front page coverage and 75% of its top-of-the-page stories to the Ukraine war during a specific time frame, it only dedicated 18% of its front page stories and 25% of its top-of-the-page stories to the Iraq invasion. The disparity in coverage is striking, especially considering the direct impact the Iraq invasion had on American citizens. The media's handling of these two conflicts raises questions about bias and priorities in reporting. It's essential to acknowledge that both conflicts have significant implications and deserve equal attention. The war in Ukraine and the U.S. actions towards Russia are crucial areas where the president has the ability to act and shape policy, yet the media portrays it as if the U.S. has no control over the situation. This disingenuous portrayal undermines the importance of American foreign policy and the president's role in shaping it.

    • Media's Influence on Conflict Coverage and Foreign PolicyMedia focus on certain conflicts shapes public perception and foreign policy decisions, potentially leading to skewed understandings and harmful choices. Honest accounting of past mistakes is crucial in shaping current debates.

      The way media covers conflicts and geopolitical issues significantly influences public perception and foreign policy decisions. The speaker shares examples of how the media's focus on certain conflicts, like Ukraine, contrasts with the lack of coverage on others, such as Yemen. They argue that this disparity can lead to skewed understandings of global situations and potentially harmful foreign policy choices. The speaker also emphasizes the importance of an honest accounting of past mistakes, such as the Iraq War, in shaping current foreign policy debates. Overall, the media's role in shaping public opinion and foreign policy cannot be overstated.

    • Criticizing the administration's handling of oil and gas industry during energy crisisThe speaker urges the administration to take a more aggressive stance towards oil companies, promote renewable energy, and reduce oil prices through immediate actions.

      The current administration's handling of the oil and gas industry during the energy crisis is perceived as weak and inadequate. The speaker criticizes the administration for not taking a more aggressive stance towards oil companies, such as sitting down with CEOs directly, pushing for a windfall profits tax, or implementing strategies to make renewable energy more accessible and affordable for all. The speaker also points out the potential damage to the cause of renewable energy due to the administration's inaction and the resulting perception that only the wealthy will benefit. Furthermore, the speaker argues that the administration could take more immediate action to reduce oil prices, such as using the strategic petroleum reserve or restricting oil exports, instead of considering a federal gas tax holiday. Overall, the speaker believes that a more assertive approach is necessary to address the energy crisis and promote a sustainable energy future for all Americans.

    • Consideration of federal gas tax suspension may not effectively address high gas pricesThe administration's consideration of suspending the federal gas tax could lead to increased demand and potentially higher prices, while their indecisiveness on various issues may result in greater financial burdens for citizens

      The current administration's consideration of suspending the federal gas tax is a short-term solution that may not effectively address the root causes of high gas prices. Instead, it could lead to increased demand, potentially driving prices even higher. Additionally, the administration's lack of decisiveness on various issues, including student loan debt relief and potential price caps on Russian oil, has raised concerns about their ability to respond effectively to crises. This indecisiveness could ultimately result in more significant financial burdens for citizens.

    • Geopolitical tensions and political polarization impact markets differentlyGeopolitical tensions could increase oil prices, while political polarization can boost controversial candidates' popularity

      Geopolitical tensions and market speculation can significantly impact oil prices, with experts predicting an increase due to potential sanctions against Russia. Meanwhile, in the political sphere, controversial figures like Eric Greitens continue to gain support in Republican primaries, using divisive rhetoric and provocative ads to galvanize their base, despite ethical concerns and past scandals. The success of such tactics highlights the power of polarization in modern politics. In the oil market, underinvestment and limited spare capacity could lead to a price surge if producers retaliate by withholding supply. Conversely, in the political realm, the more the media and opposition parties react negatively to candidates like Greitens, the more likely they are to boost his popularity among his voter base.

    • Missouri Senate Race: Controversial Figure Greitens Likely to Secure GOP NominationDespite ethical concerns, Greitens' strong opposition to McConnell and Trump's endorsement make him a favorite for the GOP nomination. Clinton prioritizes winning the next election for Democrats.

      Despite controversial past scandals, Eric Greitens is likely to secure the Republican nomination for the Senate seat in Missouri due to his strong opposition to Mitch McConnell and Trump's endorsement. The Republican base seems to be more motivated by being against established political figures than by moral or ethical concerns. Meanwhile, Hillary Clinton believes that winning the next election is the priority for Democrats, regardless of activist causes or potential polarizing figures. The political landscape is trending towards divisive and oppositional stances, with the media and tech companies' actions potentially benefiting controversial figures.

    • Focusing on divisive issues vs addressing voter concernsWhile important, divisive issues like Defund the Police and preserving democracy may not be the top concerns for most voters. Economic struggles and inflation are more pressing. Finding common ground and addressing voter concerns is key to winning elections and delivering for the American people.

      The focus on divisive issues like Defund the Police and preserving democracy, while important to some, may not be the most pressing concerns for the majority of voters. Instead, issues like inflation and economic struggles are at the forefront of people's minds. Additionally, the importance of winning elections and delivering for the American people cannot be overlooked if one truly believes the stakes are existential. Furthermore, the disconnect between rhetoric and action, as well as the condescending tone towards those with differing views, can turn people off from important causes like feminism. The poll results suggest that older males, specifically, are becoming more comfortable with the idea of feminism, but negative associations with the movement can still deter younger males and those with opposing political views. Ultimately, it's crucial for political figures and activists to find common ground and address the concerns of all voters, rather than focusing solely on divisive issues.

    • The apocalyptic language of Hillary Clinton and the Democratic establishment reveals their ineffectivenessJournalistic ethics and credibility are crucial, as shown by the demotion of a journalist caught in a lie and the apocalyptic rhetoric of political figures

      The apocalyptic language used by Hillary Clinton and the Democratic establishment, coupled with their loss in genuine polling results, reveals the ineffectiveness of their argument and the current state of the Democratic establishment. Additionally, the case of Taylor Lorenz, a journalist known for abandoning journalistic ethics and lying, serves as a symbol of new journalism and its harmful consequences. After being caught in a lie about contacting two YouTubers, Lorenz was demoted and now has her articles reviewed by a top editor before publication. Her behavior, both professionally and personally, undermines the credibility of institutions she's worked for, such as The Washington Post and The New York Times. The focus should be on upholding journalistic standards and ethics, rather than using positions to target political opponents.

    • Discussing sensitive topics requires empathy and understandingEmpathy is crucial when discussing sensitive topics. Be aware of who is affected and consider their feelings. Factual reporting and journalistic standards are essential for reliable information sources. Be cautious of sloppy reporting and biased apps like TikTok.

      Empathy and understanding are crucial when discussing sensitive topics, especially during challenging times. The discussion highlighted the insensitivity towards those affected by the virus and long COVID, and the importance of considering who has the right to make light of such situations. Additionally, the conversation touched upon the reliability of information sources, with a focus on the importance of factual reporting and journalistic standards. The Depp-Heard trial and the role of independent media were also discussed, emphasizing the need for accurate information and the potential for sloppy reporting to mislead the public. Furthermore, the dangers of relying on certain apps, such as TikTok, for information were raised, underscoring the importance of being aware of the sources of our information and their potential biases.

    • TikTok Executives Misled Congress About Data Handling, Chinese Bosses Had AccessDespite TikTok's assurances on user data security, Chinese executives had access, raising concerns over data privacy and potential risks of cultural manipulation, freedom of speech violations, and unfair business practices.

      TikTok's executives have been found to have misled Congress about the handling of US user data, with recordings revealing Chinese bosses having access to everything. Despite TikTok's claims of prioritizing user data security and hiring experts, the lack of a judicial system in China raises significant concerns about data privacy. The argument for banning TikTok includes concerns over data theft, cultural manipulation, freedom of speech, and fairness. The US government's reluctance to ban TikTok is due to fears of being labeled racist, but the potential risks of data breaches and Chinese influence on US youth outweigh these concerns. Ultimately, the ban would ensure that any content promotion is driven by commercial American profit rather than Chinese government interests.

    • The End of Neoliberal Economic PoliciesThe Fed's post-pandemic actions led to an era of easy money, fueling asset price growth for the wealthy and subsidizing losses for unprofitable companies. However, this era of capital-focused policies is coming to an end, and a new economic reality is emerging.

      The global economic landscape is undergoing significant changes, with the post-pandemic future looking vastly different from the past. The extraordinary actions taken by the Federal Reserve to rescue the stock market, most notably during the COVID crisis, have had far-reaching consequences. The Fed's massive injections of capital into the economy have fueled a boom in asset prices for the wealthy, while keeping interest rates at historic lows for the last decade. This easy money environment led to the growth of unprofitable companies that relied on cheap credit and venture capital to subsidize their losses. However, this era of neoliberal economic policies, characterized by capital above all else, is coming to an end. The future is uncertain, but it's clear that the economy as we know it may no longer exist. The Chinese term "Baizhou," which refers to Westerners who believe they are saviors but are ignorant and arrogant, may be proven wrong as countries like China demonstrate their own economic prowess. It's time to prepare for a new economic reality.

    • Artificial Economy: Disconnected from Real ValueCheap credit led to prioritization of stock buybacks, lending over investment, resulting in fake prices, asset bubbles, and keeping 'zombie companies' afloat. The Fed's policies created wealth for some but potential consequences will disproportionately impact latecomers. Fragmented parliament in France adds to the challenge of restoring real economic value.

      The past decade has seen an increase in the economy's artificial nature, with cheap credit leading companies to prioritize stock buybacks and lending over investment in production, labor, and innovation. This has resulted in fake prices, asset bubbles, and speculative manias, while also keeping "zombie companies" afloat. The overall effect is a more disconnected economy from real economic value. The Federal Reserve's policies have also created wealth for some, but the potential consequences, including mortgage rate spikes and a likely recession, will disproportionately impact those who got in late on the boom. The French legislative elections resulted in a fragmented parliament, with Macron's party falling short of a majority, making governance challenging. These developments underscore the need for restoring a connection to real economic value, but the process is likely to be painful and uncertain.

    • Far-right National Rally party gains historic seats in French electionsEmmanuel Macron's centrist party lost majority, allowing far-right National Rally party to gain 89 seats, with over 50% of votes in many districts, due to Macron's co-opting of republican front's language against left coalition.

      The recent French elections saw a significant shift in power, with Emmanuel Macron's centrist La République En Marche! party losing its majority and the far-right National Rally party, led by Marine Le Pen, gaining a historic number of seats. This collapse of the traditional anti-far right coalition, known as the republican front, allowed Le Pen's party to go from having only 8 seats in the previous parliament to 89 seats in the new one. In many districts, Le Pen's party received over 50% of the votes, as the other parties' voters did not collapse against them. This change in French politics was attributed to Macron's strategy of co-opting the language of the republican front against the left coalition, which eroded the ability of voters to see Le Pen's party as a specific threat. It remains to be seen whether Macron's policies will shift to the right as a result of this election outcome, but it is likely that he will need to form alliances with right-leaning parties to pass legislation.

    • French Political Landscape Remains DividedMacron's reelection offers him little incentive to pass explosive reforms due to opposition from both left and far right, making the French political landscape challenging for him to implement his agenda.

      Despite Emmanuel Macron's reelection in France, the Republican party has little incentive to support his priorities due to the political advantage they gain from opposition. Macron's ideological ties with conservatives on economic issues are already strong, but his attempts to pass explosive reforms, such as raising the retirement age, could face significant resistance given the country's political climate and the strength of opposition from both the left and the far right. The recent parliamentary elections served as a rebuke of Macron's leadership and governing style, with voters expressing concerns over economic instability and policies like pension reform. These factors, along with Macron's underestimation of opposition forces, contributed to the unexpectedly competitive elections and a lack of a clear majority for his party. Overall, the French political landscape remains divided, making it challenging for Macron to implement his agenda.

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    Can the West Stop Russia by Strangling its Economy?

    Can the West Stop Russia by Strangling its Economy?

    There’s the Russia-Ukraine war that’s easy to follow in the news right now. We can watch Russian bombs falling on Ukraine, see Russian tanks smoking on the side of the road, hear from Ukrainian resistance fighters livestreaming their desperate defense.

    But there’s another theater to this war that’s harder to see, but may well decide the outcome: the economic war that West is waging on Russia. Europe and the United States initially responded with a limited set of sanctions but then expanded them into a counterattack capable of crushing the Russian economy. Vladimir Putin, for one, understands the danger: As the force of the West’s measures multiplied, he readied his nuclear forces in a bid to warn Europe and the United States off. This is terrifying territory.

    So I asked Adam Tooze — a brilliant economic historian, the director of the European Institute at Columbia, and the author of the indispensable “Chartbook” newsletter — to explain how the war in the financial markets is shaping the war in streets of Ukraine. What he gave me was a whole new way to see how Putin had readied his country for conflict, the leverage that Russia’s energy exports gave it, how the dreams of the globalizers had cracked, and what the West both was and wasn’t doing in response.

    But this is two conversations, not one. On Friday, Tooze and I recorded just as the war began. That was a conversation about the economics of the war as both Russia and the West understood it when the bombing began. But on Monday, we spoke again, because so much had changed. Rather than splice the two discussions into an artificial omniscience, I’ve linked them, because I think they reveal more in sequence: They show how fast this war is reshaping the politics around it, how quickly the escalation is coming, how rapidly the plans are crumbling.

    So we discuss the sanctions that the West has deployed against Russia, how Europe’s dependence on Russian energy exports undermined the West’s response, what Putin understood about the dark side of economic interdependence, how Ukraine’s remarkable resistance — and the remarkable leadership of its president, Volodymyr Zelensky — reshaped the politics and policies in the West, how this war could alter the geopolitical calculus of China and Taiwan, the new economic order that is emerging, and more.

    Mentioned:

    “Putin’s Challenge to Western hegemony - the 2022 edition” by Adam Tooze (Chartbook)

    “The economic consequences of the war in Ukraine” (The Economist)

    Book Recommendations:

    The Economic Weapon by Nicholas Mulder

    The End of the End of History by Alex Hochuli, George Hoare and Philip Cunliffe

    The Future of Money by Eswar S. Prasad

    Thoughts? Guest suggestions? Email us at ezrakleinshow@nytimes.com.

    You can find transcripts (posted midday) and more episodes of “The Ezra Klein Show” at nytimes.com/ezra-klein-podcast, and you can find Ezra on Twitter @ezraklein. Book recommendations from all our guests are listed at https://www.nytimes.com/article/ezra-klein-show-book-recs.

    “The Ezra Klein Show” is produced by Annie Galvin, Jeff Geld and Rogé Karma; fact-checking by Michelle Harris; original music by Isaac Jones; mixing by Jeff Geld; audience strategy by Shannon Busta. Our executive producer is Irene Noguchi. Special thanks to Kristin Lin and Kristina Samulewski.

    290 - Let's Take A Beat

    290 - Let's Take A Beat

    Tim finds a solution to the Russian and Ukrainian war and saves the Summer America desperately needs, and discusses why the most expensive house in Los Angeles finally sold.

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    Ep. 1452 - Putin’s Escalation Continues

    Ep. 1452 - Putin’s Escalation Continues

    Vladimir Putin unleashes a strike against a Ukrainian base along the Polish border; Iran fires missiles at the US consulate in Erbil, Iraq; and China generously offers to mediate between Russia and Ukraine.

    Okay, this is epic. Get Ben Shapiro merch here: https://utm.io/uedoS 

    Pick up your copy of A Tale of Two Cities and join Third Thursday Book Club now to be a part of next months Q&A: thirdthursdaybookclub.com

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