Author Archive: Stephen Green

KRUISER’S MORNING BRIEF: Dirty Hippies Rediscover Plastic Shopping Bags Plus Beer Blog Friday. “Whilst this beer-blogging stuff is going on, I’ve committed to getting outside of my IPA comfort zone. Some of you fine readers have been suggesting beers, and I am trying to track some of them down. My local brewpub that’s delivering to me has quite a selection, but they’re not running at full capacity during the plague. When I order from them I look for something new and sometimes just something that has a clever name, which is how we got to this week’s beer: Belching Beaver Brewery’s ‘Viva La Beaver’ Mexican Chocolate Peanut Butter Stout.”

I tried something similar at Beasts & Brews in Colorado Springs a few weeks ago, and it was surprisingly good.

ELI LAKE: The FBI Can’t Be Trusted With the Surveillance of Americans.

On Tuesday, the Justice Department Inspector General Michael Horowitz issued a new report that found systematic errors of fact in the FBI’s applications for warrants under the Foreign Intelligence Surveillance Act. The memo does not speak to the materiality or significance of those errors — but they are startling nonetheless.

Out of 42 applications, the report says, 39 included major defects. All told, the inspector general uncovered 390 deficiencies, including “unverified, inaccurate, or inadequately supported facts, as well as typographical errors.”

The memo follows the report Horowitz issued in December that reviewed four FISA warrants for Carter Page, a former foreign policy adviser to then-candidate Donald Trump’s 2106 presidential campaign. The bureau suspected him of being a Russian agent, but the report found that it repeatedly relied on an opposition research dossier to persuade the secret court to renew the surveillance warrant even after agents knew the dossier was riddled with errors. Rules that have been in place for nearly 20 years to verify the accuracy of facts presented in the warrant and include exculpatory information, known as the Woods procedures, were ignored.

Read the whole thing.

WOW: UPMC unveils potential COVID-19 vaccine. “Scientists say they’ve tested the vaccine in mice, and it produced antibodies specific to SARS-CoV-2 at quantities they believe could be enough to neutralize the coronavirus.”

KRUISER’S MORNING BRIEF: Let’s All Get Comfortable With Saying Bad Things About China Now. “China is still a totalitarian communist monster and should be viewed as a threat to the United States, not an exotic business partner. The U.S. military has long viewed it as such, it’s time for the rest of us to get on board.”

TWO-EDGED SWORD: Saudi Power Play Could Send Oil Below $20 a Barrel for an Extended Period.

The U.S. urged Saudi Arabia and Russia to back off plans to increase production. While Russia is reportedly not going to pump more, the kingdom ignored the plea. It plans to raise production to 12.3 million barrels a day, up from 9.7 million a day in February. Oil prices, already down more than 50% in March, were moving lower on Wednesday. Brent crude futures fell 5.7% to $24.84, while West Texas Intermediate futures were trading flat.

Saudi Arabia is angling to take market share from U.S.-based producers, after those oil drillers have taken share at the kingdom’s expense for the past few years. Saudi Arabia tried this in 2014, boosting production to force prices lower. But while the rate of bankruptcies for U.S. producers rose, production dipped only temporarily and the U.S. continued its market-share gains. That time, prices fell to $26.

This time, Saudi Arabia is in a better position to cause U.S. companies to flinch. Demand for petroleum products has fallen dramatically as people around the world stay home to combat the coronavirus, so producers are having trouble finding buyers for their barrels at almost any price. Spot prices at some U.S. pipelines have fallen below $10 a barrel.

Even smaller US producers are better hedged than they were in 2014, but they weren’t also facing a collapse in demand.

UPDATE (FROM GLENN): Trump’s already using this to fill the strategic petroleum reserve from US suppliers — “at a very nice price” — but he should double down on that.