The President's Daily Brief - September 2nd, 2022. Updates on Our Economy; Some Good, Some Bad. Joe Biden is a National Security Nightmare.

Episode Date: September 2, 2022

It’s September 2nd. You’re listening to the President’s Daily Brief. Your morning intel starts now. ------ Welcome to a special edition of the PDB this morning: We’re back to a Big Five Update. Five critical updates on stories we’ve covered previously that are shaping America — and the world. First, some good economic news: America’s Manufacturers are holding steady in the face of a recession.    Second, some bad economic news: America’s farmers are getting hit with record-setting expenses. Third, a sliver of hope in the Wheat Wars: a ship is unloading grain this morning that will help feed 1.5M people. Fourth, you will not believe what parents in China are having to do to get their kids to school, all because of Beijing’s Zero COVID policy. Finally, the CDC admitted that they botched their COVID response but we continue to learn just how bad it was. The latest: how badly they damaged our health. Plus, one more thing before I let you go. A listener’s question about Joe Biden’s speech last night — and how data show that Mr. Biden got it dangerously wrong. ------ 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 September 2nd. 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. Welcome to a special edition of the PDB this morning. We are back with a big five update, five critical updates on stories we've covered previously that are shaping America and the world.

First, some good economic news. America's manufacturers are holding steady in the face of a recession. Second, some bad economic news. America's farmers are getting hit with record-setting expenses. Third, a sliver of hope in the wheat wars. A ship is unloading grain this morning that will help feed 1.5 million people. Fourth, you will not believe what parents in China are having to do to get their kids to school, all because of Beijing's zero COVID policy.

Finally, the CDC admitted that they botched their COVID response, but we continued to learn just how bad it was. Well, the latest is on how badly they damaged our health. Plus, one more thing before I that you go. It's a listener question about Joe Biden's speech last night and how data show that Mr. Biden got it dangerously wrong. But first, let's get to our Big Five update. Some good news on the economic front.

Despite the recession or near recession, U.S. manufacturing is holding steady. The Institute for Supply Management's gauge of factory activity held firm last month with a reading of 52.8, and that's similar to July. So any number above 50 is good. So given that we are sitting near or about the same, 52, give or take, well, that means that we are holding steady. So digging into the numbers, I saw a few things that I wanted to flag for you. First, inflation is cooling.

Prices for raw materials are settling down for, instance, and we're seeing an increase in the supply of computer chips. And that hadn't been true for a while, and that in fact was pushing up the cost of all kinds of electronic goods. So all in all, we should see inflation continue to soften. Second, the employment numbers from that same manufacturers report showed a reading of 54.2, which basically means that manufacturers are generally adding workers to their payrolls. So America is putting more people to work. Third, and finally, the positive indicators that we're seeing all throughout this latest report, well, they're pretty broad, no matter the category.

So, for instance, electronics providers are saying that demand for their industry is still pretty good. Folks in the sand and gravel and lime business are saying, hey, things are good for us too. Also, plastic and rubber products, they're saying, well, things are mostly okay, a little bit of soft demand, probably next year, but overall, we're doing good too. there was one note of caution in this otherwise good report. If you are in New York State, for example, manufacturers aren't doing so well at all. Factory activity plunged last month by the second most since 2001. But then again, in places like Pennsylvania and Illinois, things are improving.

Regardless, all and all, some really good news here. And that is actually far better news than what we are seeing out of Asia and Europe, whose manufacturers are not doing as well. For your second update this morning, we pivot from good news to bad on the economic front, most especially for our farmers. Costs for growing food in the U.S. are set to rise by the most ever. That'll come as no surprise to farmers who don't need to see the data to confirm what their pocketbooks have been telling them for a while now. But nevertheless, the U.S. Department of Agriculture released a report this week,

saying that production costs for farmers are estimated to rise by $66.2 billion this year. year. That's about 18% compared to last year. And those numbers are the most ever recorded. So what is driving this increase all the way up to $66 billion? Well, everything is up, it seems. The biggest jumps are in fertilizer and feed for raising animals. So that first piece, the fertilizer. That's up because of the war in Ukraine and limitations of shipments from Russia, which is a major exporter of fertilizer. We've also got European fertilizer plants who are cutting back. or shutting down, in part because they can't afford the natural gas that they need to make their product. As for the other category going sky high, the feed prices, well, the cost of corn and wheat

are both up. And why? Well, the war in Ukraine is pushing prices up. Plus, we are seeing some marginal corn crops in the U.S. and elsewhere from droughts and heat waves. But unfortunately, that's not the least of it. We've seen record diesel prices, the cost of seeds and pesticides are up too. And speaking of going up, interest rates. That's another cost weighing our farmers down. So all in all, a very tough year for our farmers and ranchers. Very few these folks can pass along those costs to consumers, so this makes this news especially painful. It becomes really tough to impossible to keep operating in this new environment. But regardless, I'm going to keep watching this because your farmers and ranchers, when they hurt, well, your country hurts too.

your third update this morning, some continued good news in the wheat wars. As listeners know, the war in Ukraine cut off wheat and grain supplies to countries all around the world. That increased the chances for famine and unrest in countries that are very important to us. Well, the spigot of Ukrainian wheat has been turned back on after a deal between Moscow and Kiev around a month ago. And wheat, well, it is getting to market. And that includes a ship that just docked with 23,000 tons of Ukrainian wheat destined for some very hungry people in the country of Ethiopia. Estimates are that that wheat will feed 1.5 million people for one month. And so far, we've seen over 720,000 tons of grain having left Ukraine since this deal was signed between Kiev

and Moscow, and that is a very good thing. The overall amounts actually aren't that far off from what Ukraine used to ship before the war. Now, one note of caution here, at least for this area called Horn of Africa, which includes the nation's Ethiopia, Kenya, and Somalia. Those countries are all in the midst of the worst drought that they have seen in 40 years, and that means that there are 22 million people at risk of starvation. And so while this aid does help, they really need rain to grow their own crops. But sadly, that is just not going to happen this year. The United Nations warned last week that this region will have major crop failures because

the rainy season didn't show up again this year for the fifth. year in a row, in fact. So the resulting desperation that people will probably feel, well, unfortunately, that's going to aid radical Islamic groups in the region who benefit from this sort of instability. And for that reason, I will absolutely be keeping my eye on this one for a long time to come. With that, we are going to take a quick break. And when we come back, I've got two more updates for you on China and COVID. We'll be right back. Own it all. Pay off your home. Travel for life. Drive a Ferrari. In celebrating. of the world premiere of the Monopoly

Big Board Buckslot machine by Aristocrat Gaming, Yamava Resort and Casino at San Manuel, is giving one person a $1.6 million dream package. The biggest prize in Yamava's history. Club Serrano members can earn daily instant prizes and secure a spot in the finale May 29th. Don't pass go and own it all. Only at Yamava,

celebrating its 40th anniversary. You win? Details at yamava.com must be 21-20. Please gamble responsibly. Monopoly is a trademark of Hasbro. Hasbro is not a sponsor of this promotion. Kayak gets my flight, hotel, and rental car right. I can tune out travel advice that's just plain wrong.

Bro, Skycoin, way better than points. Never fly during a Scorpio full moon. Just tell the manager you'll sue. Instant room upgrade. Stop taking bad travel advice. Start comparing hundreds of sites with kayak and get your trip right. Kayak, got that right. Welcome back to the PDB and our Big Five update.

I've got two more critical pieces of news for you this morning. First, as a school year starts off here in America, it's struggling to get started in China. And that's because Beijing has embraced a zero COVID policy, which means that even a single case can shut down an entire city. And a handful of cases can shut down an entire region. And that's exactly what's happening. There are 1,675 cases of COVID nationwide in China, a country with an outbreak, such as it is, of 400,000. cases in the city of Chengdu, and that's led schools there and elsewhere in the country to shut down or delay the start of the school year. At least two major cities and four

provinces have delayed or canceled classes. And for those schools who are still trying to move forward, here is what they are requiring of parents and students. Parents are required to upload each family member's temperature to a government portal every day, not just the kids, but the entire family. Meanwhile, they have to report any travel details and of course they have to undergo daily COVID tests. For some schools though, that's not enough. They are launching facial recognition software to ensure that there are no cheating students when they show up.

Plus, they have to undergo another COVID test, usually done by a teacher that's been sanctioned to conduct this test. Well, the process has become so outlandish and so burdensome that it's actually slowed kids from getting inside of schools, literally physically getting. them inside. There are, in fact, long lines. And that in turn has caused some classes to be canceled altogether. They just send the kids home. It's quite a remarkable story given that COVID is a virtually no risk to children. But regardless, I'll keep watching for the fallout of this zero COVID policy, because beyond Chinese schools, it's also Chinese factories that are shutting down

during these zero COVID days. And those factories supply America with many of the goods that we buy. More on that next week. Finally this morning, it's been a couple weeks since the CDC admitted that it botched its response to the COVID pandemic. Well, we have another reminder of the costs that we continue to pay for that government failure, and not just here in America, but in fact, around the world. On Wednesday, researchers at the University of California, San Francisco released a study that showed a profound collapse in physical activity during the lockdowns, and it was and remains a global problem. Researchers examined physical activity throughout the world.

They used an app measuring the step counts of over 1.2 million users. And they compared step counts from before the COVID lockdowns through February of this year. And what they found is pretty incredible. Not one continent on this globe has recovered to pre-COVID levels of physical activity. North America, we are still down 4%. Europe, down 14%. South America and Asia are down. 30%. This global story is important because America in particular already has an obesity problem.

CDC data tells us that about 40 to 45% of Americans on average struggle with obesity, plus another 20% of our youth. And that is bad for all sorts of reasons, but for one that's most especially critical to our national security. Our military is struggling to bring on new recruits because so many kids are obese. In fact, according to CDC data, a whopping 76% of American youth can't meet federal physical activity guidelines. This will remain a big deal for me as I watch global threats and think about how important it is that we have a strong fighting force. And that's why you should keep a close eye on this too. And that, folks, is your big five update for this Friday morning. But I've got one more thing before I let you go. Listener question about some very very

dangerous words spoken last night by Joe Biden. We'll be right back. This is a Bose moment. You've been there before. Somebody's apartment, small talk that's going nowhere, plastic cup that's almost empty. It's not great. Then someone hits play on a Bose speaker. Heads nod, feet tap, one person dances than everyone does. Awkward becomes electric. When Bose sound fills the room, you don't just hear the music. You feel it. Your life deserves music. Your music deserves Bose. Find your perfect product at Bose.com. Pepsi Prebiotic Cola in original and cherry vanilla.

That Pepsi taste you love with just 30 calories and no artificial sweeteners. Pepsi Prebiotic Cola. Unbelievably Pepsi. Welcome back, ladies and gentlemen. One more thing before I let you go. Alex in Sterling, Virginia wrote in asking about last night's speech by Joe Biden. so here's his question. Brian, I listen to Biden talk about MAGA Republicans being a threat to democracy,

and it makes me both angry and nervous. It seems like he's using very dangerous language that could lead some to violence. So I'm wondering what you think about it. Well, Alex, what you are seeing is what I'm seeing. His language is absolutely dangerous. He's calling Republicans white supremacists and fascists and racists. In effect, he's. inciting his followers to violence, stirring up the fearful passions of his political base to win

an election in November. And I'm led to that conclusion because the data just don't match his claims. So consider this. During the 2020 election, the Republican Party attracted over 70 million people to vote for its MAGA candidate, Donald Trump. Now, whether you like him or not. Now, exit polls conducted by Edison Research showed that his block of 70 million plus voters were the most diverse group of people that the GOP had put together since 1960. 26% of Trump's MAGA voters were non-white. And that's an increase from what he got back in 2016. So let's break out those numbers. Compared to 2016, Trump got a five-point increase amongst black men, a four-point increase amongst black women, amongst Hispanics. He was up

four points among men and three points among women. And the same is true for gay, lesbian, and bisexual voters. Trump got 14% of those folks back in 2016, and it went up to 28% in 2020. So what the data show us clearly and unquestionably is that whether you like Trump or not, his MAGA movement is a rainbow coalition. It is diverse. It is not racist or fascist or white supremacist. It is, irrespective of what Joe Biden is now claiming. Now, of course Joe Biden and his team know this. They don't care. They would rather lie and create panic and hysteria to win an election.

And the great irony, Alex, is that if we were being honest about threats to our republic, we would be talking about Joe Biden and his family. Again, let's talk facts, not opinion. The fact is that Joe Biden's son Hunter abandoned a laptop at a repair shop three years. years ago. And on that laptop, Hunter said that he was giving his father Joe a 10% cut of a business deal between him and members of the Chinese Communist Party plus other Chinese citizens. So there is your grave national security threat. There is your threat to our democracy. Now, Joe Biden has denied ever taking Beijing's cash. In fact, he's denied ever talking to his

son about any of his son's business dealings, which we also know from the laptop is an absolute lie. In fact, we know that Joe Biden was writing letters of recommendation to Hunter's Chinese business partners so that their kids could get into an American college. That's just one example. And that is a fact. That is not an opinion. In other words, Alex, we have a man sitting in the White House who has been credibly accused by his own son of taking secret cash from the greatest enemy our country has ever faced. Now, you can decide what you think about that, how serious it is for you. But as for me, a man who has spent his whole life defending this nation, I view him as a clear and present danger to the republic. Joe Biden is a national security nightmare. He is a man

who, if he were sitting in the CIA headquarters right now as an employee and our security folks saw that laptop, he would be grabbed by the scruff and thrown out onto the street. In every single intelligence case that he touched would be assumed to be compromised by the Chinese. So that's why, no matter what Joe Biden said last night, I will assume that the words he's using are not meant to strengthen America. Because we have credible information to suggest that he is not acting on behalf of the American people. He is serving either his own interests or those of Beijing. 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. Ryan Reynolds here from MintMobil. I don't know if you knew this, but anyone can get the same premium wireless for $15 a month plan that I've been enjoying.

It's not just for celebrities, so do like I did and have one of your assistants assistants to switch you to MintMobile today. I'm told it's super easy to do 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. Seeful terms at mintmobile.com.