The President's Daily Brief - February 14th, 2023. Cold War 2: Diplomacy Battles for the Pacific

Episode Date: February 14, 2023

It’s February 14th. You’re listening to the President’s Daily Brief. Your morning intel starts now. ------ A good day to you, ladies and gentlemen. I’ve got four briefs for you this morning that are shaping America — and the world. First, get ready for lots of talk about inflation today. The latest numbers are set for release about whether inflation is going up or down in America. I’ll explain what to expect — and what it means. Second, The Biden White House is about to sell more of the nation’s emergency supply of oil, which will take us to the lowest levels since 1983. Third, there was a terrible spill of industrial chemicals in eastern Ohio a little over a week ago. It’s a story that deserves our attention, so I’ll fill you in on the latest. Fourth, some good news in our Battle for the Pacific. More island nations are choosing America over China. Later, we close out the podcast with news of a US company choosing China over America. The Ford Motor Company made an important announcement yesterday, and you deserve to know about it before you buy your next car.  ----- Please remember to subscribe if you enjoyed this episode of the President's Daily Brief. Email: [e-mail] Learn more about your ad choices. Visit megaphone.fm/adchoices

It's February 14th. You're listening to the President's Daily Brief. I'm your host and former CIA Officer Brian Dean Wright. Your morning intel starts now. Hey, good day to you, ladies and gentlemen. I've got four briefs for you this morning that are shaping America and the world. First, get ready for lots of talk about inflation today. The latest numbers are set for release about whether inflation is going up or down in America. I'll explain what to expect and what it means. Second, the Biden White House is about to sell more of the nation's emergency supply of oil, which will take us to the lowest levels since 1983. Third, there was a terrible spill of industrial chemicals in eastern Ohio a little over a week ago.

It's a story that deserves our attention, so I'll fill you in on the latest. Fourth, some good news in our battle for the Pacific. More island nations are choosing America over China. Later, we close out the podcast with news of a U.S. company choosing China over America. It's the Ford Motor Company. In fact, they made a very important announcement yesterday that you deserve to know about before you buy your new next car. But before we get to all of that, we got to get started with this.

Inflation, it is going to be the topic of the day. And that's because America's Bureau of Labor Statistics will publish the Consumer Price Index data later this morning. And that will tell us if inflation in this country is heading down as it has been for a few months now, or if it's popping back up. So, which way will it go? Well, lots of rumors out there, but the expectation on Wall Street and from mainline economists is that the rate will fall from 6.5% to 6.2%. Although some folks are pointing to use car sales saying that inflation actually will probably go up, you might remember me giving you that brief and that information when I told you that prices for

used cars were up a surprising 2.5% last month and that means that Americans are still spending more than well some people would like which could mean inflation is going back up and if so that means the Federal Reserve will likely keep raising interest rates making lots of things even more expensive from houses to credit cards which actually takes us to this folks are spending it's true, but the source of that spending is, well, it's a little bit troubling. Last week, officials at the bank Goldman Sachs released a report showing that Americans are drawing down their savings accounts to keep up with expenses. Savings accumulated during the pandemic are down about 35% from their high, with another 30%

expected to be spent by year's end. So all in all, let's keep an eye on that CPI data today. And if you can't, no, not to worry. I will, and I will keep you posted. Let's pivot now to another big driver of inflation, and that is energy, specifically oil. Well, unfortunately, I've got some bad news on that front. The Biden White House is selling another 26 million barrels of oil from our emergency crude supply that's stored at the Strategic Petroleum Reserve, or the SPR.

Now, as a quick reminder here, the SPR is actually a group of old salt mines in Texas and Louisiana, set back up in the 1970s to manage the oil crisis at the time, and ensured that the nation always had this emergency supply, should we say have a war or an economic shock. Well, unfortunately, the reserve has become more than just an emergency supply of energy. It's become a piggy bank of sorts. And that's because Congress will sometimes mandate the sale of that oil in order to pay for spending, whether it be a new or expanded government program.

program. Now, to be clear, that's an abuse of the original purpose of the emergency reserve, but nevertheless, Congress does it anyway, frankly, on a bipartisan basis. And in fact, that helps explain this latest sale of 26 million barrels. Mr. Biden and his energy department are required to sell that oil because of a 2015 law passed by Congress to help pay for these assorted government spending programs. Now, as bad as that might be, and it is, it actually gets worse and more nonsensical. Because as we're selling this oil, we're also trying to buy it, too. And that's because the Biden administration last spring emptied out the reserve by 180 million barrels out of hope that that would lower gas prices. Well, now they have to refill it back up. But,

oh dear, they can't. And that's because the price that they want to pay, which is $70 a barrel, that's below the current market price, which is $79 a barrel, at least for West Texas Intermediate. So folks, if I might offer you my opinion and analysis here, our government is treating the emergency oil supply like emergencies don't exist. And it's not just Joe Biden. This is a bipartisan problem. And for now, we're stuck with it. So let's hope that there's no emergency in our near future, because if so, we are in trouble. Finally this morning before our first break, we're going to shift attention to the state of Ohio. There was a train derailment there on February 3rd that's caused growing concern that a terrible environmental disaster is unfolding in that state without much attention being given to it. So let's do that this morning and talk about what we know.

In early February, just about 11 days ago, there was a train with 150 railroad cars approaching the city of East Palestine, Ohio, right on the border with Pennsylvania. Pennsylvania. Now, security footage shows that before it arrived in East Palestine, one of the axles was sparking and causing a fire as it passed by these cameras, which should have caused an emergency brake system to kick in, but it didn't. So onward the train went until apparently the axle or one of its components broke and the whole train derailed. So of the 150 railroad cars involved, I think it's 20 included toxic industrial chemicals. Some of those cars were mangled, but they remained intact. Others were unfortunately leaking.

Now, we're still learning exactly what those leaking chemicals were. The train company, Norfolk Southern, has been a bit cagey about identifying them, but the Environmental Protection Agency just released yesterday a list that they say is a comprehensive list of these materials. And on that list are cancer-causing chemicals like vinyl chloride and three others used in things like paint products and even dry cleaning. But regardless, at first responders decided to actually pierce the five cars that hadn't burst open with the idea that they could trench these chemicals away from the accident and burn the stuff in a controlled manner.

And that's because, according to the state and federal government officials, it was safer to burn those chemicals than letting it, say, leach into the soil or the groundwater or for those rail cars to eventually explode. But to be clear, they also... knew that burning those chemicals was really bad. The governors of Ohio and Pennsylvania issued an emergency proclamation just before this controlled burn, saying that the fires, quote, will release fumes into the air that can be deadly if inhaled. So based on current weather patterns and the expected flow of the smoke in fumes, anyone who remains in the red affected

area nearest the city of East Palestine, they are facing grave danger of death. Well, two days later after that controlled burn, the Ohio governor, a fellow named Mike DeWine, said that everyone could return home. Quote, state and local health officials determined that it is now safe for community members to return to their residences, end quote. But there's growing concern that he and other officials were and are mistaken. Local residents say that there's a distinct stench in the air, like a chlorine or nail polish, maybe burning rubber. And they're complaining about headaches and nausea, dizziness, and vomiting. We also have confirmed reports that some of these chemicals got into the local waterways,

despite this localized and intense burn, right, into a creek that's called sulfur run. And that leak has in turn killed an unknown number of fish and potentially gone onward into other creeks and rivers, which in turn serve as sources of drinking water for other towns. However, the local and state and federal government officials involved are saying, no, that's just not true. Rather, that the accident, while absolutely serious, is no longer a problem. In fact, they're saying that air quality readings are back to normal, that water wells show absolutely no sign of contamination, and there was no broader spillage into larger bodies of water like the Ohio River.

And as for those smells reported by the residents, well, the EPA says that, quote, residents may still smell odors from the site. And those people experiencing any symptoms should call their medical provider. All right. What the EPA didn't say, of course, is who's going to pay for those medical bills or to take time off of work or getting a babysitter for the kids and so forth? Or God forbid, what happens if these fumes lead to long-term effects like cancer? Well, in regards to these medical concerns, the railroad company has offered up $25,000 in donations for the entire community to use, which residents say is a hilariously small number. And that's why this morning we now have three different class action lawsuits by these area

residents, and that's a number that I suspect will grow. So I'm going to keep watching this, folks, because in the past, we've seen industrial accidents like this be, well, swept under the rug by both. companies and governments. And that's meant that the people affected, usually the poor and the working class, have paid the ultimate price. With that, ladies and gentlemen, let's take a quick break. When we come back, I've got three more critical pieces of news for you, all good news in our battle for the Pacific. So hang tight, and we will be right back. Own it all. Pay off your home, travel for life, drive a Ferrari. In celebration of the world

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That's OLLLY.com. These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease. Welcome back to the PDB. I've got three more critical pieces of news for you this morning. All of them connected to our series called Cold War II. That's a fight between China and the United States for influence and global supremacy, which is similar to the fight between the Soviet Union and America years ago.

So a little over a week ago, the director of the CIA, William Burns, said that the agency assesses that China's president has already ordered his military to be ready to invade Taiwan by the year 2027. But he said, quote, that doesn't mean that he's decided to conduct an invasion in 27 or any other year, but it's a reminder of the seriousness of his focus and his ambition. Then the CIA director said this, quote, it's a global competition between the United States and China, and in some ways it could be even more intense than competition with the Soviets ever was, in quote, which is exactly the case. That's why we call it Cold War II.

So this morning, let's ask, how are things going in that new Cold War? Well, I've got some updates in one area in particular is the battle for the Pacific. that's our focus on who's winning over those island nations in the north and south Pacific that were so important during World War II and would be absolutely critical in any World War III. So as ever, let's pull out those maps, folks, either in your mind or on your phone or computer. And let's start with the islands up north that have long been on America's side. And those are the Marshall Islands, Palau, and the Federated States of Micronesia. So to refresh our memories on these islands, they all signed agreements with the United States

back in the 1980s. They were called Compacts of Free Association. And it meant that America agreed to take care of their national defense and gave them some economic assistance in exchange for exclusive rights to military basing and to handle most of their foreign policy. Well, those compacts were set to expire this year or next. And so negotiations have been ongoing throughout the summer and fall. Well, this morning, we've got some good news to talk about regarding those negotiations. All three island countries have now signed these new memorandums of understanding. Details of exactly what the U.S. offered these islands isn't clear.

Everybody's been pretty tight-lipped so far, but whatever it is, we promised them it was enough. In fact, Micronesia was the last of these three to agree. They signed just last Friday. That then takes us to the next update on the battle for the Pacific, to the island country of Papua New Guinea, located just north of Australia and sharing their island with its neighbor Indonesia. Well, U.S. negotiators are meeting with the Papua New Guineans, and they are saying that the two governments have, quote,

made substantial progress, end quote, on the text of a defense cooperation agreement. And that will lay the groundwork for closer military ties between the two countries, which is really good news. So negotiations are being held in Honolulu at present and should continue throughout this week and next, with both sides predicting a successful conclusion to these talks. Now, whether that includes military basing rights or not, that's unclear. But this is really good news because, as PDB listeners know,

the government of Papua New Guinea has deep and growing cooperation with China. That includes major trade deals involving gas and minerals and timber, about $4 billion worth of trade in all. The Chinese are also squeezing this country with debt. Around half a billion dollars is what they owe to the Chinese government for assorted projects over the years. So any progress at all that we make between the United States and Papua New Guinea is really great news.

So I think we ought to celebrate that this morning. Finally, let's head northwest of Papua New Guinea and talk about the country of the Philippines. Now, as PDB listeners know, that government, just agreed to open or expand new military bases for U.S. personnel on islands facing the South China Sea. That is a contested area that Beijing largely claims, but other nations like the Philippines, do not. Well, the president of that country, a man named Ferdinand Marcos Jr., said yesterday, that he was also open to inviting not just the United States, but another military to his country, and that one is the Japanese military. Now, before I give you details, let's just

just pause for a moment and just reflect on this. So as my history buffs know, from 1942 to 1945, the Japanese occupy the Philippines during the Second World War. So for this to happen, or even the openness for this to happen, it shows that relationships and alliances are shifting all throughout Asia. Folks there understand that the world is gearing up for a fight, or at least for a Cold War II. All right, but I'm getting ahead of myself. So here's what the Philippines president is said about allowing the Japanese to return to his country. Quote, if it will be of help to the Philippines

in terms of protecting, for example, our fishermen or protecting our maritime territory, I don't see why we should not adopt it, end quote. Although he did hedge a little bit, saying that he didn't want his agreement with Japan to appear provocative, clearly talking about the Chinese reaction there. So all in all, that is the latest, my friends,

on the battle for the Pacific with all good news for America. And with that, ladies and gentlemen, we conclude your morning brief. But I've got one more thing before I let you go. We'll be right back. Ryan Reynolds here from Mint Mobile, with a message for everyone paying big wireless way too much. Please, for the love of everything good in this world, stop. With Mint, you can get premium wireless for just $15 a month.

Of course, if you enjoy overpaying, no judgments, but that's weird. Okay, one judgment. Anyway, give it a try at mintmobile.com slash switch. Up front payment of $45 for three-month plan, equivalent to $15 per month required. Intro rate first three months only, then full price plan options available. Taxes and fees extra. See full terms at mintmobile.com. Welcome back to the PDB folks.

I've got one more thing before I let you go. So today we've talked about all sorts of great stuff, the U.S. economy and China, Cold War II. And there's one thing that the CIA director said that's worth repeating. I don't want to quote them again. It's a global competition between the U.S. and China in ways that could be even more intense than the competition with the Soviets ever was. So I want us to think about that, that the U.S. government is once again saying that China is our greatest and gravest threat.

And I want you to think about that compared to this latest news out of Michigan. The Ford Motor Company announced yesterday that it is partnering with Chinese. battery company CATL or cattle, all to build a new $3.5 billion battery plant in southwest Michigan. So Ford is saying that they will pay the Chinese firm an undisclosed amount of money to license their battery technology, while Ford will build and operate the factory itself. Although they did say that the workers there will include Chinese personnel because, as Ford said, quote, we need their help. So of the many, problems that this raises. One is the Chinese law states that Chinese nationals have to assist

their country's intelligence and military services whenever asked. They are not allowed to say no. So these new Michigan-based Chinese personnel might be, in fact probably will be compelled to either conduct espionage or do whatever they're told whenever they're asked by Beijing. and that is exactly why this plant was rejected by Virginia's governor Glenn Yonkin. If you may recall, Ford was considering a Virginia location for this same factory, but Governor Yonkin said, no thanks. Why? Well, he said this, quote, it would serve as a front for the Chinese Communist Party, which could compromise our economic security and Virginians personal privacy, end quote.

And you know what? He was right. But apparently, that's not a problem for Michigan's leaders, including the governor there, Gretchen Whitmer. Nor is it apparently a problem for Ford Motor Company's executives either. So I'll tell you, I hope that we all keep this in mind as we think about buying our next car. You know, Ford has made its choice. And they are telling you the American consumer that they're happy to embrace the Chinese. And they're happy to do so.

at the very moment that Chinese spy balloons are floating above us. And they made this decision, folks, just days after the CIA director once again laid out that we are under threat from Beijing. And it is a greater threat than the one that we faced with the Soviet Union. Well, all right. Michigan and Ford are telling us exactly who they are and what they believe, which in my view and in my opinion, they are not especially patriotic, nor are they very smart. Well, I hope that the rest of us are, especially the next time when we think about buying a car. And that, ladies and gentlemen, concludes your morning brief.

As always, we close out the show, reminding each other of why we are here, talking about our country and our world. It's the creed of every good spy and every smart American. It's from John, Chapter 8, verse 32. And you shall know the truth. And the truth shall make you free. Good day. North America with special guests. Get tickets Thursday, May 7th, at Olivia Rodrigo.com.

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