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Category: Current Events

  • Rising Rice Crisis

    Japan has a rice shortage. Of staple rice.

    While there has been sporadic rice shortages around the world recent years, Japan is a first world country and a traditional rice producer. The problem is word traditional. According to First Post, the average age of Japanese rice farmer is 71 years, and government agricultural policies in general and rice policies in particular have hit the farmers whose numbers, citing Bloomberg, have shrunk by 25% between 2015 and 2020s.

    Probably not Japanese boiled rice

    The Japanese government rice policies are strictly nationalistic, ostensibly designed to protect Japanese rice farmers and self-sufficiency by preventing rice buying from abroad. Except the consumer prices also had to be regulated, squeezing rice farmer incomes and acreage despite Japanese soft monopoly on domestic rice.

    The some explanations to Japanese rice shortages is that Japanese 2023 rice harvest was bad (already reporting rice rationing in some shops on 2024), there was an earthquake and people are panic buying (also as a hedge for rice inflation, which probably increases the rice shortfall causing more rice inflation), people are eating more rice because the war in Ukraine has increased wheat prices, and that there are hordes of tourists eating rice. And the Japanese government started selling the stored rice from reserves last year. A bit like US sells oil every now and then from strategic reserves to smooth consumer sentiment. Except that Rice News Today blames the shortage on government policy to reduce rice production, which has thinned the buffer between production and consumption to such extent that even slightest consumption increase would cause shortages.

     Now Japan is running low on rice and some shops have implemented rationing. People are upset about the steep rise in rice prices. There has been some talk about buying rice from abroad, but this is against resistance from farming lobby and conservatives, though apparently there is now a trade deal to sell Calrose rice to Japan.

    The Japanese are having an election soon, July 20th. The price of rice and the rice shortages (estimated 1.8 months of annual supermarket sales worth of staple rice – either the consumers will consume something else or Japan will soon import lots of rice) may annoy the electorate enough to lead to political upset. According to Zerohedge, SocGen (a French bank) has predicted that there is about 50% chance of election results leading to governmental crisis in Japan, which may lead to problems in yen bond market. More importantly, the price of rice is part of Japan’s inflation metrics, and if rice prices explode, the rising inflation may trigger BOJ rate hikes.

    The global bond markets are highly interconnected and the financial omnibubble is floating around in search of a pin prick. Thus, the rising rice crisis just could be the trigger of global financial collapse. Though I personally doubt it. The markets are so rigged that full collapse by contagion is unlikely. But what I have seen over the years, is that small retail investors rarely fare well in turbulence. 

  • Alligator Alcatraz and Other Signs of Times

    Alligator Alcatraz

    Florida is constructing an ‘Alligator Alcatraz‘, a deportation facility in the m Everglades. An abandoned airport project will be (government) quickly converted into a 5000 bed facility with an idea that the surrounding swamp area with its alligators and pythons would be part of the security. Federal government will use FEMA’s Shelter and Services Program money for the center. Presumed Federal costs will be 450 million dollars annually. Assuming processing speed of two weeks per deportee and full occupancy, that housing alone will cost 3750$ per person though I doubt government will be that efficient. But Alligator Alcatraz is a catchy name, good marketing!

    The immigration industry seems to still provide good income for some – left loves to import immigrants with government paying the housing, whereas right loves to deport immigrants with government paying the housing.

    Nigerian Oil Production Woes

    Alleged 7.2 billion US dollar fraud in Nigeria has led to the arrest of two officials in Nigeria’s state owned oil corporation and three other officials are being investigated. Annual allocations of money meant for revamping and rehabilitation of old oil refineries had not been efficient, as Kaduna, Warri and Port Harcourt refineries “haven’t been producing fuel in recent years” as Oilprice.com reports. Nigeria is struggling to meet (as in has not met) its OPEC quota of oil production due to crime and “struggles to launch new projects”(ibid.)

    Sweden has illiteracy problem

    Regardless of the possible reasons for the Swedish education crisis described in this Zerohedge article (originally from Epoch Times but they require registration), about 800000 of 10 million inhabitants of Sweden are categorized as illiterate. While he definitions of literacy may have changed over the centuries, this is according to the author “the highest number since at least the mid-19th century, possibly since the early 18th century.”

    During 18th century Finland was part of the Sweden, and literacy was then enforced by strong state church that demanded that everybody had to pass confirmation (which was prerequisite for get married – premarital relationships were strongly disapproved those days) and to pass confirmation had to know how to read (the material promoted by the state church , other literacy was a bonus.) Perhaps, if literacy would again be a basis for full civil rights (e.g., one would need to be able to read a contract for their signature to be legally binding), the literacy rates would begin to climb again. Without motivation to learn, there will be a segment of population that will not make an effort.

    Also, what was alluded in the article but I think should be emphasized is that many of the modern students do not even speak Swedish, and before they learn the language they won’t be able to read or write it, either. Also the Finnish literacy levels which used to be among the highest in the world are declining, at least according to PISA statistics.

    A picture from Finland, February 2025, not directly related to Alligator Alcatraz, Nigerian oil production or Swedish literacy.

  • Civil War by Proxy?

    California and Federal government are increasingly hostile in open. California has years of experience in ignoring Federal laws, some notable example issues being cannabis, immigration, and gender identity.

    On the other hand, California has used its soft power as a major economy to enforce environmental and consumer standards on the rest of the states and even abroad.

    During Biden(?) administration, Californian values seemed to become the US standard regardless of other states’ opinions, and California became more assertive also in foreign and trade policy, most notable event being the summit with president Xi and Biden in San Francisco (preceded by a climate lobbying visit of governor Newsom to Beijing.) Various California politicians were also courting China, although also opposite happened. Does anyone still remember 2022 when the then Speaker of the House, California representative Pelosi flew to Taiwan and caused jitters over potential armed conflict between USA and PRC? (Whether this was part of a policy by a bigger faction within the administration and if so, which one of them is murky to me.)

    Now, the issues between quite untethered California and the Federal government have finally come to boil. The trigger to me seems to be the transgender athletes competing against girls, where the Federal government sees California Title IX application to this issue as violation and the regular people just unfair. California continued this practice, despite warnings from Washington DC, and the current administration threatened to withhold Federal funds for California sports. Thereafter, Newsom threatened to withhold the Federal share of California state taxes, a move somewhat reminiscent to the Nullification Crisis prior to the Civil War in 1800s.

    Meanwhile, a group of Antifa or similar group(s) coordinated an attack on ICE that had done a raid in Los Angeles.

    This attack is curious because of its organization and its timing coinciding with the spat over ideologies and money. Reminiscent of the coordinated wave of violent riots in summer 2020, there were clashes between pro-immigration protesters in New York on the opposite side of the continent.

    More importantly, both the Los Angeles mayor Karen Bass and governor Newsom publicly refused to help to quell the rioters, even opposing the Federal efforts. The rioters were attacking Federal law enforcement with stones and were painting graffiti putting things in fire. In fact, a roster of California political people have come in defense of David Huerta who got arrested for participating in the riot, but their support to anti-Federal action.

    President Trump has authorized the use of 2000 National Guard (update: now 4000 plus 700 marines), and the Department of Homeland Security is bringing in reinforcements.

    I am writing this in Helsinki-Vantaa Airport, waiting for a flight that would take me back to California Bay Area via Frankfurt am Main and Los Angeles Airports. By the time I have landed, well before the time I can post this (I need to add links to sources), we will see if the California or Federal authorities have caved in. If the California stops protecting the violent mobs, removes transgender athletes from girls competitions and possibly even ponies up some tax tithes to Federal government, the incipient civil war will be averted. If the Federal government fails to enforce its rules also in California, I fear that this was the opening shot of the active phase of the disintegration of the United States. Worst case scenario, neither gives in, we may have active civil insurgency in multiple blue states by the end of the summer. The most likely outcome will be a frozen conflict, that is: both sides will pretend nothing significant happened but neither will acknowledge that the other side might have won.

    I also predict there will be lots of pundits dissecting irrelevant minutiae from the utterances of either side, and thanks to the strong left bias of the main stream media, the reporting will mostly support California and its allies, meaning tailwinds for civil war or mostly peaceful disintegration of USA and headwinds for peace and prosperity. The biggest losers will be the regular people trapped in the middle, looting and violence disrupting supply chains, especially for groceries and fuel, and then collapsing the teetering economy in general.

    Update: Much has happened since Sunday. California did not capitulate and the National Guard activated in Los Angeles is up to 4000 and 700 marines are in readiness. When I arrived on Sunday evening to Bay Area, I took the BART from airport to hometown. The train did not take or drop passengers at Embarcadero station due to political activism nearby, but let out a handful of burly police officers and while the train waited a couple of minutes next to the platform, I could observe the officers running and so did a couple of the people already there. There was still a crowd waiting for the next train or something, though the trains had started skipping that station for the duration. Sorry, no video footage of that.

    More ominously, a Walmart heiress is funding (in a small part) a nationwide call for unrest June 14th, another weak indicator supporting my hypothesis that the riots that started last weekend are part of elites’ civil war, raging over  who gets to loot the treasury.

    In social media there are reports of incidents in Denver, Charlotte (NC), Boston (MA), Chicago, New York City and Atlanta, things are escalating fast. This indicates that this is not a question of secession (California from USA) but of civil war by proxy between the progressive left and the conservatives over the control of Federal government. The presidency and the Congress are currently held by Republicans, but vast swathes of the administrative state are governed by the Deep State currently (mostly) promoting leftist ideologies (reasons for that are too long to expostulate in a single post and in any case speculative to the tinfoil hattery territory.) Individual states and their administrative apparati are a hodgepodge of ideologies, but the Left Coast in general and California in particular is the current vanguard and bastion of progressive establishment, so troubles beginning here makes sense.

    Meanwhile, governor Newsom and Federal officials are still discussing about who pays what.

    On a side note, a major food distributor supplying thousands of supermarkets got hacked last week and food distribution is off kilter. When I yesterday visited a grocery, they had a sign on meat counter apologizing for ‘warehouse issues’. I did not ask the cause then because I had not then seen this piece of samizdata news yet. I wonder if the food shortages and riots at the same time are a coincidence?

    Finally, whether true or not, the possibility of a fleet of robotaxis fleeing LA riots in order not to get burned by Mexican flag waiving ‘mostly peaceful’ protesters shows what kind of timeline we are living in. In any case, Waymo services have been suspended in downtown LA are for the time being.

    Looks like I need to pick some canned meat while it is still available.