A GLIMPSE INTO HUMAN SMUGGLING From jail, a 17-year-old Mexican reveals logistics of being smuggled into US BY CHARLOTTE CUTHBERTSON
2024 ELCTO I N Worsening economy lays the groundwork for the candidate who can fix it. p.12
AUGUST 5–11, 2022 | $6.95
TR AVEL LOGJAM Global air travel gridlock disrupts countless summer vacation plans. p.16
H A Z A RO D US N IM N I G Lithium mining for EV batteries presents significant environmental risks, report says. p.40
NO. 31
Editor’s Note
A Glimpse Into Human Smuggling we’ve all seen the photos of people illegally crossing into the United States. What we don’t know, in most cases, is how they were smuggled. In this week’s edition, read about Martin Lazaro Bieya, a Mexican national who was smuggled into the United States but apprehended by local law enforcement. From the local jail in Goliad, Texas, Bieya provides insight into the logistics of the smuggling operation that brings tens of thousands of illegal immigrants like him into the United States every month. Bieya was arrested after the car transporting him crashed as the driver tried to evade law enforcement. Bieya details a journey involving stash houses, multiple vehicles and drivers, an inflatable raft, smugglers on both sides of the U.S.–Mexico border, and a seven-night trek. Goliad County Sheriff Roy Boyd calls the vast smuggling operation into the United States “almost like warfare.” “The cartel owns car dealerships, restaurants, various businesses, and it helps them launder their money, move their slaves, and maintain a foothold within the communities,” he said. Boyd blames the U.S. government for not only not stopping this illegal activity, but for encouraging it. “The federal government encourages it through their policies and procedures,” he said. Jasper Fakkert Editor-in-chief
2 I N S I G H T August 5–11, 2022
JASPER FAKKERT EDITOR-IN-CHIEF CHANNALY PHILIPP LIFE & TRADITION, TRAVEL EDITOR
ON THE COVER A Kinney County sheriff’s deputy arrests an illegal alien being smuggled from the U.S. border, after the driver fled and the vehicle ran into a fence, in Kinney County, Texas, on July 29. CHARLOTTE CUTHBERTSON/ THE EPOCH TIMES
CHRISY TRUDEAU MIND & BODY EDITOR CRYSTAL SHI HOME, FOOD EDITOR SHARON KILARSKI ARTS & CULTURE EDITOR BILL LINDSEY LUXURY EDITOR FEI MENG ILLUSTRATOR SHANSHAN HU PRODUCTION CONTACT US THE EPOCH TIMES ASSOCIATION INC. 229 W.28TH ST., FL.7 NEW YORK, NY 10001 ADVERTISING ADVERTISENOW@EPOCHTIMES.COM SUBSCRIPTIONS, GENERAL INQUIRIES, LETTERS TO THE EDITOR HELP.THEEPOCHTIMES.COM (USPS21-800)IS PUBLISHED WEEKLY BY THE EPOCH MEDIA GROUP, 9550 FLAIR DR. SUITE 411, EL MONTE, CA 91731-2922. PERIODICAL POSTAGE PAID AT EL MONTE, CA, AND ADDITIONAL MAILING OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO THE EPOCH TIMES, 229 W. 28TH STREET, FLOOR 5, NEW YORK, NY 10001.
vol. 2 | no. 31 | august 5–11, 2022
26 | Hunter Biden
50 | Conversation
Probe FBI nixed probe pre2020 election over Dem ‘disinformation’ claim, Sen. Grassley alleges.
Starters An effective way to enjoy life more is to talk to new people.
52 | The Erosion
of Truth Zuby talks transgenderism, disinformation, and personal responsibility.
28 | Housing Market Rising rates and a refinancing freeze are hurting the mortgage sector.
56 | An Aegean Estate
38 | Electric Vehicles
Set on a Greek island, this estate offers a mythic lifestyle.
How mass electric vehicle adoption will affect the power grid.
40 | Lithium Mining
Electric vehicle batteries pose serious environmental risks.
44 | Tax Policy
Sen. Joe Manchin’s U-turn emphasizes the need for a flat tax amendment.
46 | US Economics
If the spring drop in GDP wasn’t a sign of recession, what was it?
47 | Midterm Elections Top Republicans are urging conservatives to unite behind Trump’s “America First” agenda.
48 | Monetary Policies Why do countries have zombified economies and huge debt?
49 | New Reserve Currency A coordinated global effort to displace the dollar should not be dismissed.
Features 12 | 2024 Election America’s economic woes may facilitate the rise of an anti-establishment maverick in 2024. 16 | Global Airline Logjam “Self-inflicted” airline woes disrupt countless summer travel plans with delays, cancellations, and missing baggage. 30 | Human Smuggling Logistics From a Texas county jail, an illegal immigrant details how a Mexican cartel got him across the border.
THE LEAD
Led by Sen. Cory Booker (D-N.J.), Senate Democrats introduced a bill on Aug. 2 to limit the tenure of Supreme Court justices, who currently serve for life, to 18 years. The proposed legislation comes as Democrats fume over recent decisions by the court that returned the regulation of abortion to the states, expanded gun rights, and curbed the government’s environmental regulatory powers. MANDEL NGAN/AFP VIA GETTY IMAGES
58 | The Land of
Mythology Greece’s Peloponnesian Coast combines beauty and delightful dining.
60 | Unusual
Road Trips These unique museums offer an opportunity for summer adventure.
63 | Ski Slope
Essentials Cool off by beginning your winter ski trip shopping now.
66 | Tequila Sunrises Today’s tequila was inspired by “pulque” dating back to 150 B.C.
67 | Two-Wheeled
Etiquette On a Harley or a moped, mind your manners to have fun and ride safe.
I N S I G H T August 5–11, 2022 3
SPOTLIGHT
Aviation Show
SOUTH KOREAN KAI T-50 GOLDEN EAGLE aircraft, of the 53rd Air Demonstration Group “Black Eagles” aerobatic team, perform during the 2022 Pyramids Air Show above the (L–R) the Great Pyramids of Menkaure, Khafre, and Menkaure at the Giza Necropolis, Egypt, on Aug. 3. PHOTO BY MAHMOUD KHALED/AFP VIA GETTY IMAGES
I N S I G H T August 5–11, 2022 5
SHEN YUN SHOP
Great Culture Revived. Fine Jewelry | Italian Scarves | Home Decor
ShenYunShop.com
6 I N S I G H T August 5–11, 2022
Tel: 1.80 0.208.2384
NAT ION • WOR L D • W H AT H A P P E N E D T H I S W E E K
The Week
No.31
A departures board shows all flights canceled, during an airline worker strike at Brussels Airport in Zaventem, Belgium, on June 20. PHOTO BY JONAS ROOSENS/BELGA/ AFP VIA GETTY IMAGES
Global Airline Logjam The conditions are ripe for a political outsider to make waves in the next presidential election, analysts say. 12
16
The FBI nixed a probe of Hunter Biden’s business dealings ahead of the 2020 election, using the playbook of Democrats, Grassley alleges. 26
Increased demand for lithium batteries presents significant environmental risks, a U.N. report says. 40
INSIDE I N S I G H T August 5–11, 2022 7
The Week in Short US
2i r e h s e h t d es n e W“ os i ht et a gitse v ni ot
eht esuaceb y ldab t nemnre v o g lared f
357%
” .ti od t’now
Richard Mack, a former Arizona sheriff, on alleged fraud in the 2020 election
“We will not abandon our commitment to Taiwan.”
300 MISSILES The State Department has approved the possible sale of 300 Patriot missiles to Saudi Arabia for about $3.05 billion, according to the Defense Security Cooperation Agency.
13%
Credit card debt held by American households surged by 13 percent in the second quarter of 2022 from the same time last year, according to the Federal Reserve Bank.
9.5%
Investor home purchases accounted for 9.5 percent of home sales nationally in the 12 months ending April 2022, Realtor.com reports.
Tenfold Increase — There was a fourfold increase in the number of fatigue calls from American Airlines pilots in June alone, while on some days, there was a tenfold increase, according to the Allied Pilots Association. 8 I N S I G H T August 5–11, 2022
THIS PAGE FROM TOP: CROSSROADS/SCREENSHOT VIA THE EPOCH TIMES, ALEX WONG/GETTY IMAGES, SHUTTERSTOCK; RIGHT PAGE FROM TOP: SAMUEL CORUM/AFP VIA GETTY IMAGES, MARIO TAMA/GETTY IMAGES
U.S. House Speaker Nancy Pelosi, at a joint press conference with Taiwanese President Tsai Ing-wen in Taipei
From 2007 to 2021, private insurance claims with a Lyme disease diagnosis in rural America jumped by 357 percent and in urban areas by 65 percent, FAIR Health claims.
The Week in Short US ELECTION
Voter Fraud Cases Stem From Jailhouse Registration Drive in Florida NINE FLORIDA SEX OFFENDERS
President Joe Biden arrives to sign an executive order on access to abortion, in the Roosevelt Room of the White House on July 8. ABORTION
Biden Signs Executive Order on Abortion Access PRESIDENT JOE BIDEN on Aug. 3 signed an executive order that he says will
allow for more abortion access, weeks after the Supreme Court’s decision to overturn Roe v. Wade. Biden’s executive order directs the Department of Health and Human Services (HHS) to “consider action to advance access” to abortion services, including via Medicaid for women who travel out of state to obtain one, according to the White House. The order also asks HHS Secretary Xavier Becerra to consider “all appropriate actions” to ensure that health providers follow federal laws so people can “receive medically necessary care without delay,” referring to abortions. VACCINES
CDC Claims Link Between Heart Inflammation, COVID-19 Vaccines Wasn’t Known THE CENTERS FOR DISEASE CONTROL and Prevention (CDC) has claimed
that there was no known association between heart inflammation and COVID-19 vaccines as late as October 2021. CDC officials made the claim, which is false, in response to a Freedom of Information Act request for reports from a CDC team that is focused on analyzing the risk of post-vaccination myocarditis and pericarditis, two forms of heart inflammation. Both heart conditions started to be detected at higher than expected rates in the spring of 2021 following COVID-19 vaccination. The date range for the research A sign for a COVID-19 vaccination site in Los data was April 2, 2021, to Oct. 2, 2021. Angeles on June 10, 2021.
face potential voter fraud charges stemming from a voter registration drive held at the Alachua County Jail in 2020. Darry Lloyd, public information officer for the Eighth Judicial Circuit State Attorney’s Office, said the latest nine cases were referred in July by Kim Barton, a Democrat who holds the position of Alachua County elections supervisor. The registration drive triggered a series of complaints lodged by Gainesville database researcher Mark Glaeser, who identified potentially hundreds of illegal ballots cast by inmates around the state. So far, 10 of the initial 34 inmates identified by Glaeser have been charged with voter fraud in connection with the 2020 jail registration drive held by the Supervisor of Elections Office in deepblue Alachua County. CONGRESS
US Congresswoman Jackie Walorski, 3 Others Killed in Car Crash REP. JACKIE WALORSKI (R-Ind.)
was killed in Indiana on Aug. 3 when the vehicle she was traveling in crossed the center line of the road, causing a crash that resulted in four deaths, local authorities have confirmed. She was 58. The crash occurred between two vehicles near the intersection of SR 19 and SR 119 near Nappanee. Initially, on Aug. 3, the Elkhart County Sheriff’s Office said it was the other vehicle that had crossed the center line and crashed head-on into the SUV occupied by Walorski, but the office issued an update on Aug. 4 saying its initial report was incorrect. All occupants in both vehicles died in the collision. I N S I G H T August 5–11, 2022 9
The Week in Short World US–CHINA
US ‘Must Never Conflate’ CCP With Chinese People: Congressman
THE UNITED STATES “must never
People sit outside the Bank of England in London on June 16. UK
UK Sees Biggest Interest Rate Hike in 27 Years
conflate” the authoritarian regime ruling China with the Chinese people aspiring for a future free from communist control, according to U.S. Rep. Brian Fitzpatrick (R-Pa.). “As America confronts the national security and economic threats from an increasingly belligerent CCP [Chinese Communist Party], we must never conflate the Chinese people with the Communist Party. This is exactly what the CCP tries to do in its party propaganda,” he said, adding that he supports the Tuidang movement and “the growing number of Chinese who are pursuing a future free from communism.”
SOARING INFLATION EXPECTED to climb to over 13 percent has prompted
the UK’s central bank to deliver the biggest interest rate hike in 27 years, even as officials warned that Great Britain is heading into a recession. The Bank of England announced that its rate-setting body, the Monetary Policy Committee (MPC), voted 8–1 to raise the key interest rate by 50 basis points to 1.75 percent. The lone dovish view on the committee called for a 25-basis-point hike, while all nine MPC members expressed concern about decades-high inflation and further upward pressure on prices, vowing to keep raising rates at future meetings if needed.
CHINA–TAIWAN
CHINA FIRED A TOTAL of 11
SOUTHEAST ASIA
Philippines’ New President Rejects Rejoining ICC THE PHILIPPINES’ NEWLY ELECTED
president has ruled out the prospect of rejoining the International Criminal Court (ICC) amid the court’s request to resume its probe into the previous administration’s drug war. President Ferdinand Marcos Jr. said the decision was made after consulting with his legal team on the ICC’s investigation of former President Rodrigo Duterte’s anti-drug campaign. “What we are saying is, it is already being investigated here, and it’s ongoing, so why would there be a need for it?” the president was quoted as saying by a state-run news agency. 10 I N S I G H T August 5–11, 2022
Philippine President Ferdinand Marcos Jr. delivers his first State of the Nation address in Manila on July 25.
Dongfeng ballistic missiles into waters near Taiwan on Aug. 4, drawing condemnation from the island’s defense ministry. The missile launch was reported by Taiwan’s Ministry of National Defense, and the missiles landed in the water around Taiwan’s northeast and southwest. In response, the Taiwanese ministry said it activated its defense system and strengthened its combat readiness. On Aug. 2, China announced it would hold live-fire military drills in six zones around Taiwan from Aug. 4 to Aug. 7, in apparent retaliation to a visit by U.S. House Speaker Nancy Pelosi (D-Calif.) to the island.
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China Fires 11 Missiles in LargestEver Military Drills Near Taiwan After Pelosi Visit
World in Photos
1. 2.
3.
1. Firefighters stand on the rooftop of a house after a small aircraft crashed onto it, in Hoefen, Austria, on July 31. 2. A large sinkhole that appeared over the weekend near the mining town of Tierra Amarilla in the Atacama Desert in Chile, on Aug. 1. 3. A sergeant of the Kentucky National Guard with a mother and son who were rescued from floods in South Fork, Ky., on July 30. 4. Migrants wait to board an Italian Coast Guard ship to be transferred to Porto Empedocle from a facility containing more than 1,700 people in Lampedusa, Italy, on Aug. 3.
4.
I N S I G H T August 5–11, 2022 11
2024 ELECTION
WOR SEN I NG ECONOM Y
May Pave the Way for a Maverick IN 2024
Conditions are ripe for a political outsider to make waves in the next presidential election, analysts say By Michael Washburn 12 I N S I G H T August 5–11, 2022
Nation Politics
News Analysis Voters fill out their ballots at the KFC YUM! Center in Louisville, Ky., on Oct. 13, 2020. PHOTO BY JON CHERRY/GETTY IMAGES
negative economic data, analysts and strategists looking at the field of potential Republican contenders for the nomination in 2024 say that the public is increasingly fed up with the state of the economy and isn’t really concerned with whether a candidate has run for or held high office in the past. Rather, voters are far more interested in anti-establishment credentials and the ability to alleviate desperate economic conditions. With inflation now at a 40-year high of 9.1 percent, ongoing supply chain problems, and official data on July 28 showing the country has slipped into a technical recession with gross domestic product, a key indicator of prosperity, dropping 0.9 percent in the second quarter of the year, on the heels of a 1.6 percent fall in the first quarter, the midterm elections in November are increasingly seen as a referendum on the incumbent party’s economic performance. But the Democrats appear likely to pay a price for voters’ frustration well beyond the midterms, and the question for 2024 is which GOP candidate can fix the economy, experts say. This fosters an opportunity for political outsiders without experience in Cabinet-level positions, they maintain. mid a deluge of
I N S I G H T August 5–11, 2022 13
Nation Politics
No Shoo-In for Pence
14 I N S I G H T August 5–11, 2022
tage to have,” Feehery said. At the same time, Pompeo’s image as a staid, establishment figure may not endear him to voters who are tired of the economic debacle and are hungry for change, Feehery says.
Into the Breach In analyst Keith Naughton’s view, DeSantis stands as the clear GOP frontrunner.
Trump, if he runs again, will face a legitimate primary challenge, a consultant says.
Mike Pompeo’s advantage is his experience on the national security front, a consultant says.
In Naughton’s view, DeSantis stands as the clear GOP front-runner, even in a field where Trump is all but certain to run again. “Trump will face a legitimate primary challenge,” Naughton said. “He has been running for over a year. I find all the ‘will he, won’t he’ speculation over the past year ridiculous.” Given the damage to Pence’s prospective candidacy inflicted by the quarrel with Trump, there are few figures in the party with the same momentum as DeSantis now commands, Naughton says. While Hogan of Maryland has things going for him, he isn’t in anything close to DeSantis’s league at this juncture. “Hogan is a moderate Never Trumper, who will not get much voter support outside of Maryland,” Naughton said. “Hogan could have some decent fundraising among the Never Trumpers and Democrats, but he is not a serious threat.” Nor does Naughton see Pompeo as posing a serious challenge to others in the field. “I don’t think Pompeo runs if Trump gets in [the race],” Naughton said. “With Trump out, he may run. His problem— and that of most others—is that DeSantis is so far ahead. “Pompeo is, at best, at 1 percent today. DeSantis is in the upper 20s and even beats Trump in Florida.”
Historical Analogues
As for Mike Pence, “all the Trump people hate him, and he wasn’t that great on COVID-19, and he’s part of the mess,” a consultant says.
The 2024 election is still more than two years away, and the number of potential GOP contenders may grow significantly in the intervening time, says Brian Domitrovic, a Richard S. Strong scholar at The Laffer Center and a professor of history at Sam Houston State University. But it’s those outside the establishment who may well have the best shot. “We’re going to have a parade of candidates closer to the election. But it’s going to be a very important election in terms of fiscal policy, and I don’t know
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While some might assume a one-time vice president to be one of the more obvious choices in a primary race, and while former Vice President Mike Pence may enjoy the highest levels of name recognition compared to others in the party whose names come up often in discussions of possible 2024 matchups—such as Florida’s Gov. Ron DeSantis, Maryland’s Gov. Larry Hogan, Sen. Tom Cotton of Arkansas, and former Secretary of State Mike Pompeo—Pence hasn’t emerged unscathed from conflicts in the past with then-President Donald Trump over certification of the 2020 election results, observers say. “Trump’s constant attacks on Pence for not going along with his plans to overturn the Electoral College results have damaged Pence with Republican voters, presumably hard-core Trump supporters,” Keith Naughton, principal at Silent Majority Strategies, a consultancy based in Germantown, Maryland, told Insight. “If you look at the polling, Pence has a relatively high unfavorable rating among Republicans. Pence isn’t viable with DeSantis and Trump in the race. “Trump has damaged Pence enough within the GOP to make it difficult for him to be the alternative, particularly since DeSantis has become popular and has a lot of momentum.” John Feehery, a political strategist and former press secretary to then-House Speaker Dennis J. Hastert (R-Ill.), agrees with Naughton. While acknowledging that Pence is widely known and enjoys broad support among Christian conservatives, Feehery sees Pence’s falling out with Trump as one of a thicket of liabilities facing Pence should the former vice president enter the race. “I think Pence’s problem is that all the Trump people hate him, and he wasn’t that great on COVID-19, and he’s part of the mess. I think people see him as more of an establishment figure,” Feehery said. As for Pompeo, Feehery acknowledges that the former secretary of state brings foreign policy credentials to the table that other potential 2024 candidates lack. “Pompeo can say that he’s got some experience on the national security front, and that’s always a very powerful advan-
Nation Politics
that the electorate, which is going to be in a reform mood, will be so concerned about policy credentials,” Domitrovic told Insight. Domitrovic sees parallels between the current political juncture and certain periods of American history when candidates who promised to shake things up met a rousing reception. “Ronald Reagan didn’t have any economic credentials to speak of. Of course, he had been governor of the biggest state in the union, but it was the credibility of his message, and his ‘end of big government’ ideas, that were very powerful with the electorate in 1980,” Domitrovic said. “I think that any candidate who says there has to be a supply-side revolution in 2024, anyone who commits to that idea, will do very well with the voters. “And I don’t think that correlates with economic credentials on the part of the candidate; it will correlate with the degree of credibility that the candidate has with respect to that message.” Domitrovic described an electorate that is fed up with slow growth, the rise of inflation, and all the related supply-chain problems that come with such woes. “We have to have a very strong, growing economy,” he said. “We can’t have a crazy budget deficit financed by the Federal Reserve, and we have to reawaken this industrial giant, as Reagan said in his 1981 inaugural address.”
Pence’s falling out with Trump as one of a thicket of liabilities facing Pence should the former vice president enter the race, a consultant says.
Further Analogues The moment is ripe for a bold, non-establishment figure, even or especially one with no political experience as a candidate for national political office, Domitrovic says. Outsider campaigns during times of economic hardship have been highly
The key question for the 2024 election is which GOP candidate can fix the economy, experts say.
“DeSantis is in the upper 20s and even beats Trump in Florida.” Keith Naughton, principal, Silent Majority Strategies
successful in past decades, and the parallels don’t end with Reagan. “As a candidate, John F. Kennedy had no experience running in 1960, but he had credibility. He proposed tax reform and a reduction in tax rates, which led to an immediate, nine-year period of economic growth beginning in 1961. Growth under President [Dwight D.] Eisenhower was 2.5 percent, and under Kennedy it immediately doubled to 5 percent,” Domitrovic said. These examples aren’t lost on the American public and, in fact, have deep psychological resonance for many voters today, he argues. In Domitrovic’s view, experience as a Washington insider isn’t what the public will be looking for in 2024 and might actually be a liability for a candidate, given that the incumbent insiders, as Domitrovic puts it, “can’t see the forest for the trees.” “There’s extreme dubiousness on the part of the electorate with regard to anyone who seems to have made his career in Washington, in government,” Domitrovic said. “I think that some of the renegades from successful places in this country— Florida, for example—present a major successful counter-example, and that may resonate with the electorate.” Here, Domitrovic alluded to the track record of DeSantis, who, after keeping the state of Florida mostly open while other governors locked their states down during the pandemic, in March released positive figures for Florida’s job growth and labor force participation. On DeSantis’s watch, unemployment stood at 3.2 percent, well under the national average, and more than 325,000 jobs were added in the year leading up to March 2022. Americans weary of recession would like to see such phenomena at a national level and are waiting for a candidate who fits the bill. Looking to 2024, Domitrovic returned to the example of Reagan. “From 1976 to 1980, Reagan put his foot down and said, ‘We have to do something different, enact tax cuts,’ and that message resonated,” he said. “It had no basis within his own policy experience, but his message was credible, and he got votes each time he put forward that kind of message.” I N S I G H T August 5–11, 2022 15
A display shows canceled flights, in the Lufthansa terminal at the Franz Josef Strauss airport in Munich, during a strike of ground staff, on July 27. PHOTO BY CHRISTOF STACHE/AFP VIA GETTY IMAGES
TRAVEL
GLOBAL AIRLINE LOGJAM
‘Self-inflicted’ airline woes disrupt countless summer travel plans globally
16 I N S I G H T August 5–11, 2022
BY JA NICE HISL E
I N S I G H T August 5–11, 2022 17
In Focus Airlines
S
U M M E R T I M E I S supposed to be joyful for travelers heading to vacation destinations—and airlines, too, because that’s when they typically rake in cash by the barrel. But 2022 has ushered in a summer of discontent for passengers and airlines worldwide, as airlines’ plans for rebounding from the COVID-19 pandemic travel slump have hit one logjam after another. Across the globe, especially in Europe, there’s a new epidemic: canceled, overbooked, and delayed flights—and airport storage areas overflowing with lost and misdirected baggage. These once-rare annoyances of air travel are now more commonplace; travelers who took smooth operations for granted now expect snafus—a new mindset that has changed the way they plan trips. TO PREVENT ISSUES, savvy travelers
are increasingly entrusting delivery services like FedEx or UPS to transport luggage to their destinations. Some are putting GPS-enabled devices into their luggage, such as Apple’s AirTag or the Tile tracker. And people traveling in groups are sprinkling a few pieces of clothing per person into each checked bag instead of risking having someone lose an entire vacation wardrobe. For now, if an air traveler manages to have a leisurely getaway and hassle-free experience, they might feel like they’ve won the lottery. Chances for bad experiences have increased, a trend likely to continue as the summer progresses, says
Jay Ratliff, an aviation expert with more than three decades of experience. “Travel used to be something we enjoyed,” he said. “But it’s turned into something we endure.” One day last month, Ratliff’s email was brimming with more than 800 new messages, many of them from fed-up airline customers turning to him for help—or to vent. “I’ve never seen it this bad, industry-wide,” he said. “There are a lot of things contributing to this mess that we’re in, but it comes down to the airlines trying to operate too many flights, and they simply didn’t have enough employees to pull it off,” he said, noting the situation is “10 times worse in Europe.” Ratliff said the percentage of flight delays serves as a barometer for how bad the problems are. During average years, he would see single-digit percentages of delayed flights for many airlines across the globe. But one day last month, 54 percent of British Airways flights were behind schedule, for example. He rattled off other recent jaw-dropping statistics at major hubs: In Brussels, Belgium, up to 72 percent of flights were late, and in Frankfurt, Germany, 68 percent of flights were delayed. In many cases, flight delays cause missed connections. When those passengers seek rebooking, the airlines often can’t find seats for them because flights are filled. That can leave passengers stranded at unintended destinations for hours, or even days. Ratliff said that several airports have
18 I N S I G H T August 5–11, 2022
FROM L: ANDREAS SOLARO/AFP VIA GETTY IMAGES, ARND WIEGMANN/REUTERS
Passengers wait at Rome’s Fiumicino airport during a strike by airline workers that caused the cancellation of hundreds of flights on July 17.
been “begging airlines to stop selling tickets, because terminals are filling up” with travelers waiting for rebooked flights. Adding to the mess, rental cars are scarce—another COVID-created problem. When the pandemic was raging, few people were renting cars. That prompted rental companies to sell portions of their fleets. They also halted plans to buy replacements. Now that travelers are back, rental agencies are having problems securing new vehicles, which are selling at inflated prices. So when people try to get a rental car
In Focus Airlines
Several airports have been “begging airlines to stop selling tickets, because terminals are filling up” with travelers waiting for rebooked flights, an expert says. at the last minute, either because they failed to plan or were stranded by flight disruptions, they often rely on Uber or Lyft, or they may roam the airport for a prolonged period. Last week, Europe’s woes worsened. German-based Lufthansa airlines announced it was canceling “almost all flights to and from Frankfurt and Munich.” The cancellations took effect July 27 because a union representing ground workers was waging a single-day walkout
to demand higher pay. In a statement, the airline said the impact was “massive,” and cancellations affected more than 130,000 passengers. Ratliff, who worked in management for Northwest Airlines from 1981 to 2001, explained how the COVID-19 pandemic set the stage for the current crisis. Airlines were forced to cut their workforce through layoffs and early retirements. Those measures were necessary to stay afloat when demand
for air travel slowed to a trickle during the pandemic’s worst surges in 2020 and 2021. “What business can survive with 95 percent of their customers no longer knocking on the door?” he asked. Airline executives reasoned that travel demand would eventually come roaring back—and when it did, they’d hire replacements for the former employees. But it wasn’t that simple. “They found they weren’t able to I N S I G H T August 5–11, 2022 19
In Focus Airlines
hire as fast as they thought they could,” Ratliff said. Background screenings and training for new workers can be time-consuming, too. As a result, many airlines and airports remain understaffed in many job categories, ranging from pilots to baggage handlers to ticketing agents and customer service reps. ANTICIPATING A STAFFING shortfall, air-
20 I N S I G H T August 5–11, 2022
130,000
PASSENGERS
GERMAN-BASED LUFTHANSA airlines
announced it was canceling “almost all flights to and from Frankfurt and Munich” on July 27. The cancellation affected more than 130,000 passengers.
96
BOARDING PASSES
ONE EXPERT said he’d heard of a family who started their journey with seven boarding passes and ended up with 96.
up period, especially in the past year or so, U.S.-based airlines “learned some things,” Ratliff said. Executives could see that they would need to curtail flights because they lacked the personnel to keep pace. Meanwhile, Europe faced a 77 percent drop—or more—in international traffic. “And then, all of a sudden, here they come,” Ratliff said, with travelers flocking to Europe to fulfill long-delayed travel itineraries. Europe’s air-travel landscape is “a crazy, crazy mess,” Ratliff said, blaming it on flight schedules that were even more “aggressive” than many U.S. air carriers’ schedules. “This is a self-inflicted airline problem,” he said. “They rolled out this summer schedule thinking they could operate more flights than they were able to do. “They miscalculated. And who’s paying for it? The poor passengers.” Travelers who expected to follow a nice, curved arc from their point of origin to their destination instead ended up bouncing along a zigzag path. In the worst single travel nightmare that Ratliff had heard of, a family started their journey with seven boarding passes— and ended up with 96 of them. A synopsis of that family’s odyssey:
CLOCKWISE FROM TOP: COURTESY OF JOANNE PRATER, 700WLW.IHEART.COM, JEENAH MOON/GETTY IMAGES
lines cut back flights during summer, when they would typically add flights. Those cutbacks surely made airline executives wince, Ratliff said. “They want as many of those ‘silver revenue tubes’ flying as they can during the summer,” he said, “because that’s the time when they make their money.” However, Ratliff said that even the curtailed flight schedules “assumed a perfect scenario” from May to June this year. During the Memorial Day weekend travel rush, it became clear that those ideal projections were unrealistic; systems disintegrated if bad weather rolled in, or if a handful of employees called in sick, sometimes suffering from COVID-19. Such unpredictable events are capable of touching off a domino effect of airport problems. That was true even in the pre-pandemic era. But this summer, the airport houseof-cards is so precarious, a major thun-
derstorm could cause “a coast-to-coast cascading problem” that might persist for weeks, Ratliff said. Still, U.S. airlines are faring better than European ones. Airlines in Europe are having more trouble adjusting, because demand for travel in those nations continued to lag while U.S. travel demand gradually picked up. During that ramp-
(Left) Joanne Prater (2nd L) grappled with a lost-luggage ordeal after she, her sons, and her husband traveled from Ohio to Scotland in June. (Above) The suitcase Joanne Prater’s family lost is similar to this one, but the airline’s records incorrectly listed the color as blue rather than gray.
In Focus Airlines
After leaving Washington’s Dulles Airport, the group ended up missing flights, then being rebooked in multiple international hubs. “And, of course, their bags—did they keep up?” Ratliff asked. “Ha, not a chance!” ADDITIONAL PROBLEMS WITH flights
and baggage seem to grab headlines every few days. On July 20, a baggage system malfunction at Amsterdam Airport Schiphol caused KLM (Royal Dutch Airlines) in the Netherlands to take an unusual step. The airline couldn’t process luggage for most of the day. As a result, “thousands of suitcases” were left behind while their owners traveled to other places, the airline said in a statement. The next day, July 21, KLM refused to accept checked bags for passengers traveling between European cities. The goal was to “free up as much space as possible” on that day’s flights so that left-be-
“Travel used to be something we enjoyed. But it’s turned into something we endure.” Jay Ratliff, aviation expert
hind baggage could be transported. In the United States, there’s a shortage of baggage handlers, partly because of uncompetitive wages, Ratliff said. In some places, those jobs pay about $16 an hour, he said, “and you could go work at McDonald’s in that same airport for $20 an hour—so why would you want to go out and work in all kinds of weather when you can be inside and make more money?” Many travelers are putting tracking devices on their luggage—but that doesn’t always help. Even if the tracker reveals the bag’s location, some passengers are reporting that airlines are telling them to travel to distant cities to retrieve their bags. Existing methods for reuniting lost bags with their rightful owners are being stretched to their limits by the current crisis—which affected Joanne Prater and her family in ways they never had anticipated. Prater, who is Scottish
Flight delays cause missed connections. When those passengers try to rebook, airlines often can’t find seats for them because flights are filled. That can leave passengers stranded at unintended destinations for hours, or even days. I N S I G H T August 5–11, 2022 21
In Focus Airlines
and lives in the United States, says her 50-day quest to recover a checked bag has made her painfully aware of the inconvenience, stress, and emotional impact that people can experience over checked items that go missing. LONGING TO VISIT her family in Scot-
22 I N S I G H T August 5–11, 2022
you’re not bringing Fisher-Price clubs to Scotland to play golf,” Prater said. “It was just gut-wrenching to me. I’m standing there thinking about all of these poor families without their strollers, without their car seats, without their clothing.” DESPITE REPEATED ATTEMPTS to find
the missing suitcase, the Praters returned home to the United States without it. Prater continued her attempts to file various complaints with the airline, to no avail. Prater said she feels a kinship with other people who have formed groups on social media to vent their frustrations and to try to help each other locate their lost belongings. As of July 26, there was still no sign of the Praters’ bag, which was
last seen in Dublin in early June, Prater said she was told. When Insight asked Aer Lingus for comment on Prater’s situation, the airline responded via email: “We understand the concern and frustrations felt by our customers whose baggage has been delayed and the impact this has had on their travel plans. Regrettably, our airline is being impacted by widespread disruption and resource challenges.” The airline also said it is taking steps to resolve the issues, including enlisting help from third-party companies to return items to their owners. Prater said she isn’t holding out much hope that the lost bag can be found, yet she still isn’t giving up because, “at this point, it’s about accountability.” It angers
FROM TOP: PAUL ELLIS/AFP VIA GETTY IMAGES, KAI PFAFFENBACH/FILE PHOTO, 2020/REUTERS
land, Prater scored a deal for half-price airfare: $500 per person, including checked bags. She, her husband, and their three sons drove from their Cincinnati-area home to Chicago. On June 6, they boarded an Aer Lingus flight and were bound for Dublin, Ireland, and Glasgow, Scotland. But when the family arrived at their destination, one bag belonging to her two youngest sons, ages 12 and 8, was missing. As a result, the boys had only “the clothes on their backs,” Prater said. Worse yet, the bag contained a varsity jacket that holds special meaning for the family, along with team jerseys that the boys wanted to show off to their relatives. “How do you explain to your children that their favorite clothes are missing?” Prater said. After it became clear that the boys’ bag wouldn’t materialize anytime soon, the family purchased several outfits for them, paying the U.S. equivalent of about $500. Prater repeatedly called the airline, sometimes stuck on hold for 45 minutes, only to have the call disconnected or to be in touch with a representative with whom she had communication difficulties. She finally resorted to returning to the Glasgow airport during her vacation, hoping that in-person contact would prove more fruitful than phone calls or electronic messages. At the airport, an Aer Lingus employee did seem sympathetic to her concerns. To Prater’s surprise, the employee escorted her into a corridor that was outside public view. There, a sight took Prater’s breath away: The hallway was lined with hundreds of pieces of luggage and other lost articles, such as strollers, car seats, and golf clubs. “People save all their lives for a dream vacation to come to my country, Scotland, where golf was invented, only to have their golf clubs lost? I mean, men collect clubs, and they’re expensive;
In Focus Airlines
TROUBLESHOOTING T IP S F OR T R AV EL ER S Jay Ratliff, an aviation expert, provides these tips for avoiding airline-related hassles: • Make your reservations as far in advance as possible, which also protects you from fare increases. • Catch the first flight in the morning. “There is no more important flight of the day for an airline than that first flight of the day,” he said, because airlines know that if that flight goes out on time, it’s more likely that the rest of that day’s flights will follow suit. “And it’s going to be the cleanest airplane, because no one has been flying in it yet.” • Put a copy of your itinerary into your bag before you close it, increasing the chances that an airline employee will be able to return your bag to you if it’s lost. • Consider purchasing a tracking device such as Apple’s AirTag or a Tile. • Take a photograph of your bag as you’re checking in to aid in locating it. • Make sure you never put essential
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items such as medication or car keys into a checked bag. Allow extra time at the airport, reducing the chance you’ll miss your flight and face a nightmare rebooking it. “Let’s not play the game of ‘let’s see how close we can cut it,’” Ratliff said. If you have an important event, such as a cruise ship departure or a wedding to attend at your destination, build a “buffer” into your travel plans. If your flight is delayed or canceled, use social media to contact airlines, because they likely have more people working on social media than they do working the phones, Ratliff said. Be succinct in sharing what’s going on and what you need. If all else fails and you have a horrible experience with your flight or luggage, fill out an airline complaint form with the Department of Transportation (DOT). “That completely changes the tone of the conversation,” Ratliff said. “The airlines can ignore us [individual passengers], but they can’t ignore the DOT.”
Uncollected suitcases at London Heathrow’s Terminal Three bagage reclaim on July 8. Flight schedule changes are making it difficult for checked baggage to keep up. her that airlines seem to have offered flights and baggage services that they were ill-equipped to provide. “I’m probably never going to check a bag again because of this experience,” she said. Ratliff, the aviation expert, said he doesn’t see the airline crisis abating quickly. He predicts issues could persist into mid-2023. “If the airlines have packed airplanes now, treating passengers the way they’re treating them, there’s not really an incentive for them to change how they’re doing things,” he said.
Lufthansa was forced to cancel flights affecting about 130,000 passengers because of a worker strike set for July 27. I N S I G H T August 5–11, 2022 23
T H G IL T O P S Diplomatic Relations U.S. HOUSE SPEAKER NANCY PELOSI (C) waves to journalists during her arrival at the Parliament in Taipei, Taiwan, on Aug. 3. Pelosi reiterated the U.S. commitment to Taiwan while holding a joint press conference with Taiwanese President Tsai Ing-wen in Taipei. PHOTO BY SAM YEH/AFP VIA GETTY IMAGES
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I N S I G H T August 5–11, 2022 25
L AW E N F O R C E M E N T
Hunter Biden Probe
Hunter Biden, son of President Joe Biden, on the South Lawn of the White House on April 18.
FBI nixed Hunter Biden probe in 2020 over Dem lawmakers’ ‘disinformation’ claim, Grassley alleges By Petr Svab
I
News Analysis
26 I N S I G H T August 5–11, 2022
letter, “the FBI developed information in 2020 about Hunter Biden’s criminal financial and related activity.” Hunter Biden’s activities were, at the same time, probed by Grassley and Sen. Ron Johnson (R-Wis.), who at the time headed the Senate Finance and Homeland Security committees, respectively. In July 2020, a group of Democratic lawmakers that included Sen. Chuck Schumer (D-N.Y.) and House Speaker Nancy Pelosi (D-Calif.), as well as Reps. Adam Schiff (D-Calif.) and Eric Swalwell (D-Calif.) asked the FBI to give all Congress members a “defensive counterintelligence briefing” because of what they called an appearance of “a concerted foreign interference campaign, which seeks to launder and amplify disinformation in order to influence congressional activity, public debate, and the presidential election in November.” Based on leaks to The Washington Post, the supposed disinformation pertained to materials provided to Rudy Giuliani, then-lawyer for President Donald Trump, by a former Ukrainian official with historical ties to Russian intelligence. Shortly after, Sens. Gary Peters (D-Mich.) and Ron Wyden (D-Ore.), the ranking Democrats on the Finance and Homeland Security committees at the time, asked Grassley and Johnson to get a briefing for the committees from the FBI Foreign Influence Task Force, citing their concerns over the information from The Washington Post’s article.
DREW ANGERER/GETTY IMAGES
n the heat of the 2020 presidential campaign, a group of Democratic lawmakers raised the allegation that foreign actors were spreading disinformation in order to sway Congress and the election. The FBI ran with that allegation and used it to shut down a legitimate investigation of alleged crimes committed by Hunter Biden, son of then-candidate Joe Biden, according to a letter recently sent by Sen. Chuck Grassley (R-Iowa) to the heads of the Justice Department (DOJ) and the FBI. Grassley relies on information provided by multiple “highly credible” FBI whistleblowers, the July 25 letter said. “The allegations provided to my office appear to indicate that there was a scheme in place among certain FBI officials to undermine derogatory information connected to Hunter Biden by falsely suggesting it was disinformation,” it says, noting that “the volume and consistency of these allegations substantiate their credibility.” The allegations indicate “systemic and existential problems” within the FBI and the DOJ, Grassley said. “If these allegations are true and accurate, the Justice Department and FBI are—and have been—institutionally corrupted to their very core to the point in which the United States Congress and the American people will have no confidence in the equal application of the law.” Based on the timeline sketched out by the
Nation Politics
Then, in August 2020, FBI supervisory intelligence analyst Brian Auten opened an “assessment” that was used by the Foreign Influence Task Force at FBI headquarters “to improperly discredit negative Hunter Biden information as disinformation,” according to the Grassley letter. Also that month, the FBI also gave “an unsolicited and unnecessary briefing” to Grassley and Johnson “that purportedly related to our Biden investigation,” the letter says. Contents of that briefing were then leaked to the media to paint the probe as amplifying foreign disinformation. Grassley argued that nothing in that briefing was substantially relevant to the investigation. In September 2020, the Foreign Influence Task Force members began talking to FBI agents at the Washington Field Office who were looking into the Hunter Biden information. The field office agents were interviewed “in furtherance of Auten’s assessment” and were told that the Hunter Biden information “was at risk of disinformation,” the letter says. Yet, according to the whistleblowers, “all of the reporting was either verified or verifiable via criminal search warrants.” The task force members put together a file that supposedly justified the disinformation assessment, although they placed it in “a restricted access sub-file reviewable only by the particular agents responsible for uncovering the specific information,” Grassley said. He added that “this is problematic because it does not allow for proper oversight and opens the door to improper influence.” In October 2020, the Hunter Biden inquiry at the Washington field office was halted by the local assistant special agent in charge, Timothy Thibault. “Thibault allegedly ordered the matter closed without providing a valid reason, as required by FBI Guidelines,” the letter says. “Despite the matter being closed in such a way that the investigative avenue might be opened later, it’s alleged that FBI officials, including ASAC Thibault, subsequently attempted to improperly mark the matter in FBI systems so that it could not be opened in the future.” The letter touches on a lineup of explosive issues. Hunter Biden’s foreign business dealings have been a subject of public debate for years, together with allegations of his selling access to Vice President Joe Biden during the Obama administration. Before the 2020 election, Democratic-aligned media and social media suppressed information about the younger Biden’s foreign dealings and sordid personal life found
on his laptop. A group of former intelligence officials came forward backing the claim that the laptop was a part of foreign disinformation, even while John Ratcliffe, then-director of national intelligence, said there was no intelligence that supported such a claim. Months later, the media with no fanfare acknowledged that not only was the information real, but Hunter Biden was still under FBI investigation. Polling indicated that if the public was aware of the suppressed story ahead of the election, it could have cost Joe Biden several percentage points of voters—possibly enough to thwart his bid for the White House. The FBI actors involved prompt further questions. Earlier this year, Thibault was referred to the FBI and the DOJ inspector general by Grassley for likely violating internal guidelines and regulations and possibly the law because he “liked,” posted, and reposted articles bashing Trump and then-Attorney General William Barr on social media. That could be a violation of the Hatch Act, which prohibits federal employees from engaging in political activity. “These illustrative social media posts call into question ASAC Thibault’s ability to perform the duties and responsibilities of an FBI agent objectively and without bias,” Grassley said in a May 31 letter to Attorney General Merrick Garland. Auten, meanwhile, is the analyst repeatedly criticized by DOJ Inspector General Michael Horowitz in his report on the FBI’s Trump–Russia 2016 investigation. Auten was responsible for vetting the Steel dossier, a collection of false allegations of Trump–Russia collusion that was paid for by the Clinton campaign and used by the FBI to get a spy warrant on Trump campaign aide Carter Page. Auten repeatedly failed to disclose to the surveillance court that the dossier was unsubstantiated and getting debunked the more the FBI tried to verify it, investigative journalist Paul Sperry detailed in his 2021 deep dive into Auten’s role. Grassley stopped short of directly accusing the FBI of helping Democrats to undermine his investigation of Hunter Biden. His letter, however, promises credible evidence that the FBI spiked its own investigation of Hunter Biden before the election. The FBI acknowledged receiving Grassley’s letter when contacted by Insight but declined to comment further. The DOJ didn’t respond to a request for comment. The offices of Grassley, Schumer, Peters, and Wyden as well as the offices of Pelosi, Schiff, and Swalwell didn’t respond to requests for comment.
Grassley stayed short of directly accusing the FBI of helping Democrats to undermine his investigation of Hunter Biden.
I N S I G H T August 5–11, 2022 27
HOUSING MARKET
Mortgage Industry Takes a Hit on Rising Rates Lenders cut jobs as demand for mortgages continues to fall
H
By Mary Prenon
28 I N S I G H T August 5–11, 2022
for more housing, as people yearned for more space and just kept buying. Even before April of this year, we still couldn’t answer all of the phone calls.” Another reason for the recent wave of layoffs can be attributed to the decline in refinancing, McCoy noted. Firms that specialized in refinance were hit especially hard when mortgage rates started to climb. She is forecasting that the mortgage industry, along with the real estate market, will start to return to normal by the end of this year and the beginning of 2023. She also believes that potential homebuyers may be presented with more choices, fewer bidding wars, and perhaps even lower prices. “There’s going to be a natural slowdown, and we’ll all have to get back to the basics and do some hard work,” McCoy said. “We can’t be just ‘order takers’ anymore.” For those who did lose their jobs recently, she predicts that many of the administrative personnel will look to other industries, while underwriters and loan officers may consider career changes. “Just like back in 2008 when the real estate market crashed, many loan officers and real estate professionals changed jobs,” McCoy said.
‘Ready to Hire’ Motto Mortgage Home Services, a locally owned and operated lender in the Chicago suburb of Oakbrook Terrace, is still stand-
Firms that specialized in refinance were hit especially hard when mortgage rates started to climb.
When things began to slow down, companies had to lay off the extra employees they hired to keep up with the large volume of buyers during the pandemic, an expert says. ing strong. The firm, owned by husbandand-wife team Kelly Jackson and Davina Arceneaux, is part of Motto Mortgage’s nationwide network of more than 150 independently owned offices in 40 states. With a current total of seven people, Motto is actually planning to hire three more employees. “We started the business in July 2020 in the height of the refinance boom, but we decided to focus on purchase business, so we really aren’t affected by the recent slowdown,” Arceneaux told Insight. In fact, it was difficult for them to find quality people during the buying rush over the past two years, she said. Because potential candidates were so busy doing so many deals, she and her team struggled to keep up with the volume. “Being owners, we had to put on our
FROM TOP: BRANDON BELL/GETTY IMAGES, STAN HONDA/ AFP VIA GETTY IMAGES
eadlines across the nation continue to trumpet the recent slump in the mortgage industry, as thousands of loan professionals now find themselves furloughed for the time being. Industry giants such as JPMorgan Chase and Loan Depot are planning to slash thousands of jobs, while published reports indicate layoffs have been in the hundreds at Wells Fargo, USAA Federal Savings Bank, and First Guaranty Mortgage Corp. among many others. Better.com, a digital lender based in New York, has already let go more than half of its staff. So how does this alleged collapse of the mortgage industry affect potential homebuyers, as well as other banks and mortgage firms? Linda McCoy, president of the National Association of Mortgage Bankers (NAMB), told Insight that the industry will survive and that those who want to buy a home won’t be in jeopardy of having to search profusely for a loan. “Basically, we had so much volume coming in over the past two years that the industry just couldn’t handle it, and as a result, had to hire lots of people,” she said. McCoy, who owns Mortgage Team1, Inc. in Mobile, Alabama, recalled those days when they “just couldn’t stop working.” “We were all so busy taking care of huge amounts of people, and when things began to slow down, some companies naturally had to lay off those extra employees,” she said. Founded in 1973, the NAMB serves as the voice of the mortgage industry and includes small business owners, loan originators, account executives, and related professionals. With almost 30 years in the business, McCoy said she has never seen anything like the buying frenzy over the past two years. “It was definitely an anomaly,” she said. “COVID helped to create the need
Nation Mortgage Sector
loan officer hats just to maintain the pace,” Arceneaux said. “Now, we’re in the opposite situation from a lot of other lenders because we’re ready to hire.” She said they’re now finding a lot of great candidates who are available, and they want to invest in quality people now so that they’ll be ready when the market picks up again. One of their most recently offered positions—a loan officer assistant—was filled by someone with 20 years of experience who had recently been laid off from another lender. “This has been a real blessing for us,” Arceneaux said. Typically, they handle loans averaging $250,000 to $300,000, with the occasional loan of $100,000 to $200,000 and some of up to $1 million. Condo loans are heavier in Chicago itself, while single-family home loans tend to dominate the suburbs. “We’ve also increased our efforts to educate our clients and real estate professionals about all of the loan products out there,” Arceneaux said.
This now includes adjustable rate mortgages (ARM), Federal Housing Administration loans, and paying down the mortgage rate with points—fees paid to a lender for a reduced interest rate. “I don’t think we’ll be going back to 3 percent rates any time soon, but I do think we’ll see a balancing out by the end of the year,” she said. McCoy is also predicting a stabilizing of rates in the high 5 percent or low 6 percent range through the end of the year and the first quarter of 2023. “Six percent is still a great rate,” she said. “For those of us who have been in the mortgage business a long time, we remember when they once hit 18 percent!”
because the refinance volume is gone,” he told Insight. Kirse’s team has worked together for many years and has concentrated mainly on purchases. “We’re not at risk now, but salespeople can become at risk over time if they are not producing,” he said. Overall, the mortgage industry experienced the fastest rate increase in 22 years from just January to April, Kirse noted. “Last year, our West Coast divisions closed $4.5 billion in loans, and of that amount, $2.4 billion was in refinancing,” he said. “With the higher rates now, no one wants to refinance.” Like many other industries, lending can be cyclical, with relatively lower mortgage interest rates in place over the past 10 years. “Home prices have been going up at exorbitant rates, but now that mortgage rates are increasing, I think you’re going to start to see home prices come back to normal,” Kirse said. “We’ve also seen a 40 percent increase in ARMs.” His top producers are still running with about 70–80 percent on home purchases, as opposed to refinancing. “The people struggling now are the ones who depended too much on the refinance business,” Kirse said. “They didn’t keep their fingers enough into the purchase side.” While new home construction is lagging a bit, he doesn’t see that as any indication of a recession on the horizon. Arceneaux agrees. “There’s been a lot of talk about a recession coming, but at the end of the day, if people are keeping their jobs, they can pay their mortgages, and I don’t see the mortgage industry being affected,” she said.
Risk for Salespeople Ron Kirse is the Seattle district manager for U.S. Bank Home Mortgage, which lends in all 50 states and has offices in 26 states. “We’ve had no layoffs on my team, but in general, the operational side of banks and lenders has faced some layoffs basically
JPMorgan Chase headquarters in New York on Dec. 12, 2013. Industry giants like JPMorgan Chase are planning to slash thousands of jobs. I N S I G H T August 5–11, 2022 29
From a Texas county jail, a Mexican national details his smuggling route TEXT & PHOTOS BY CHARLOTTE CUTHBERTSON
Border Patrol agents apprehend illegal immigrants near the U.S.– Mexico border at Penitas, Texas, on May 10, 2021. CHARLOTTE CUTHBERTSON/THE EPOCH TIMES
30 I N S I G H T August 5–11, 2022
The Lead Border
BORDER SECURITY
INSIDE THE
HUMAN SMUGGLING LOGISTICS OF A ME XICAN CARTEL
GOLIAD, TEXAS—THREE STASH house operators,
a raft guide, two walking guides, a bush hiking guide, a taxi driver, and at least three other drivers were coordinated to smuggle Martin Lazaro Bieya from Reynosa, Mexico, to Houston— his first major city after running the gauntlet through U.S. Border Patrol and law enforcement. His final goal was Detroit, where he said an uncle had a job lined up for him. Bieya’s trip was cut short in Goliad County, some 200 miles north of the border and 150 miles shy of Houston, after the vehicle in which he was being smuggled crashed into a culvert as the driver attempted to flee local law enforcement. He initially fled the scene, but was picked up by the sheriff that evening after walking to a road to look for water and food. Insight spoke with 17-year-old Bieya through a
translator on June 23 as he sat in the Goliad jail. Bieya said he’s from Veracruz in eastern Mexico, where his family owns a small ranch, but he “can’t make enough money there.” He says that in late May, he made the decision to come to the United States and called his uncle in Detroit. “He told me he would get me to the United States,” Bieya said. A couple of weeks later, Bieya and his father took a bus to Reynosa, a major city separated from McAllen, Texas, by the Rio Grande, which marks the international border. In central Reynosa, the duo waited at a restaurant. They provided to the uncle their GPS location and what they were wearing, and a taxi soon arrived to take them to a stash house. At the house, Bieya’s father bid him goodbye
I N S I G H T August 5–11, 2022 31
32 I N S I G H T August 5–11, 2022
A map shows Goliad County in relation to the U.S.– Mexico border and Houston.
THE EPOCH TIMES
and got back in the taxi to return to Veracruz. Inside the house, which Bieya said was good-looking, “not a trashy house,” four other Mexicans waited to be smuggled across the border. These weren’t the illegal crossers who turn themselves into Border Patrol for asylum, but rather, the “gotaways”—the tens of thousands who evade capture every month because they’re unlikely to qualify for any type of legal entry. A Mexican man in his mid-20s was running the house, Bieya said. He said that he didn’t have to pay anything for food, accommodation, or transport at any stage, but suspects that his uncle paid about $7,000 to have him smuggled to Detroit. “He said he paid a lot of money, but he never told me how much he paid,” he said. Bieya said he spent the night in the house, and around noon the next day, the five migrants were transported by car to “the end of a long road,” after which he estimates they walked about three miles to the bank of the Rio Grande. There, they crossed the river in an inflatable raft and disembarked into the United States. Two Mexican Americans appeared and escorted them further from the river. “They knew what they were doing. They were just there to pick us up,” Bieya said. The group walked until nightfall, then stopped for a while before resuming at about 1 a.m. They arrived at a stash house in McAllen, Texas, in the early morning, he said. Three other illegal immigrants were already at the stash house, bringing their group to eight. Several hours later, the group was transported to a second stash house in McAllen, where they
waited until evening before squeezing into a Ford pickup truck. By now, there were 14 people to transport, including two Honduran nationals and one female. “There were seven of us” jammed into the truck bed under a sheet of plywood to hide them, he said. “It was tight.” “After about an hour on the road, the truck stopped and they told us to get out.” Bieya said he didn’t know where they were, but the timing fits with where smugglers drop off illegal immigrants so they can walk through the brush to skirt the Border Patrol highway checkpoint near Falfurrias, Texas. It’s one of the deadliest paths for illegal immigrants, where many die from heat-related issues. Guides, or “coyotes,” leave sick or injured people to fend for themselves. The original two coyotes were still with Bieya’s group, and at this point, a third was present to lead them in their ensuing seven-night trek. “We walked from 4 in the afternoon until 5 in the morning,” Bieya said. At the time, the temperature in South Texas was hitting the high-90s to 100s during the day, while the night cooled to the mid-70s. The group carried 1-gallon jugs for water, and when they ran dry, they’d find a livestock trough to refill. They ate only once a day. “We all talked about what we would do if we made it safe into the United States,” he said. “I wanted to work for a couple of years and hopefully get citizenship.” Helicopters with spotlights passed over several times, and they had to scurry into the brush to hide. He said he also saw drones three times during the trek. Two rattlesnakes met their demise during the trip. After seven nights, Bieya said the group arrived at a paved road and waited for the pickup vehicle to arrive. Within an hour, a Chevy Tahoe SUV stopped, and they all crammed in. The next stop was supposed to be Houston, but in Goliad County, Sheriff Roy Boyd spotted them and attempted to pull the vehicle over. The driver tried to escape, but lost control and crashed into a culvert. All of the occupants, including Bieya, fled into the brush. But he was the last one to exit the vehicle and never saw the main group again. He said members of the group had told him they planned to go to New York, Virginia, the Carolinas, and Houston. “I didn’t know what to do because I was so hun-
The Lead Border
gry, so thirsty,” he said. Later that evening, he said he decided to turn himself in. Bieya found some workers near a road and asked them for water. “They gave me two bottles of water and a beef taco,” he said. Not long afterward, the sheriff was passing by, saw him on the side of the road, and apprehended him. Eight other members of the group were later apprehended in a nearby county. They were turned over to Border Patrol and taken back to Mexico, but Boyd has issued warrants for their arrests, should they reappear. The warrants include felony charges for engaging in organized crime, as well as several misdemeanors, including evading arrest, Boyd said.
The Cartel The Gulf Cartel coordinates all the logistics of the human smuggling from the eastern part of Mexico right through the Texas corridor and deep into the United States, said Boyd. “Just think of the logistics that go into it,” Boyd said. Bieya was just one person in a system that handles thousands of illegal aliens per day. Officials in El Paso, Texas, recently estimated there were 60,000 people across the border in Ciudad Juárez waiting to enter the United
“It's almost like warfare, the logistics of feeding and transporting and housing and having water and the toiletries and all of the things that are required.” Roy Boyd, sheriff, Goliad County
(Top) A Goliad County sheriff’s deputy apprehends an illegal immigrant in Goliad, Texas, on Nov. 23, 2021. (Above) County law enforcement officers arrest illegal immigrants in Goliad County, Texas, on Nov. 23, 2021.
States illegally. Boyd said he’s heard estimates of a half-million waiting to cross along the 1,254mile Mexico–Texas border. “As you move those people, where you’re moving them to has to be vacated by the people who are already there,” he said. “It’s almost like warfare, the logistics of feeding and transporting and housing and having water and the toiletries and all of the things that are required. It’s a phenomenal task just on the logistics side.” He said working factories and warehouses in Mexico are common locations that cartels use to stash people until they’re ready to take them across the border. Boyd said the cartels pay the Mexican government each month for the use of the “plazas,” which are the staging and border crossing areas. The government will allow a certain volume of drugs or amount of people to flow through I N S I G H T August 5–11, 2022 33
Martin Bieya suspects his uncle paid about $7,000 to have him smuggled to Detroit from Mexico. A smuggler paddles his raft back to Mexico after dropping two Illegal aliens on the U.S. side of the Rio Grande near McAllen, Texas, on April 18, 2019.
per month, and if it exceeds that, the cartel is taxed, or the government will raid a warehouse and sit on the commodity until the cartel pays. “It’s how they work with the drugs, so I suspect they work the exact same way with humans,” Boyd said. If too many people get stacked up waiting to cross, it causes a cash flow issue for the cartels, he said, “because now, the cartels have got to pay extra manpower, they’ve got to pay for water, they’ve got to pay for food, they’ve got to pay for toilet paper, they’ve got to pay for medicine—they’ve got to pay for all the things because it’s in the cartel’s interest to keep these people alive.” “What these people don’t know at this point is that that payment to get across to Texas is not the final payment. The final payment gets told to them when they get to Houston,” he said. Inside Texas, and beyond, the Gulf Cartel has an extensive network, with Atlanta being the
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next major hub beyond Houston. “The cartel owns car dealerships, restaurants, various businesses, and it helps them launder their money, move their slaves, and maintain a foothold within the communities,” Boyd said. “That’s how it functions, and it’s very complex, but it ensures the cartel’s total control of their operational area within the United States.” The smuggler drivers are now often recruited via social media such as TikTok, WhatsApp, and Facebook, Boyd said. “They were targeting Hispanic teenagers from the metropolitan areas like Houston, San Antonio, and Dallas,” he said. “They show wads of money. And so you have a teenager who sees somebody with $10,000, and they’re told, ‘You can drive down to Falfurrias, pick up eight people, drive up here, and you get this amount of money.’ It’s quick, easy money.” Boyd said there’s a large Hispanic community in Houston, of which a portion “sympathizes with
The Lead Border
Mexico and works for the cartel—and so they’re the operatives that get hired to go back and forth.” Boyd’s goal is to deter the cartel from entering Goliad County. Within the 852 square miles of the county, he monitors 16 cartel sites that are currently dormant, but tactics change quickly. “We can’t stop it. The federal government wants it. The federal government encourages it through their policies and procedures,” he said. “All I can do is try to make it as uninviting as possible for them to come into Goliad. And that’s what we’ve been trying to do.” Boyd started putting up large billboards on the county line last year. “Warning! Drug and human traffickers: Turn around, do not enter Goliad County,” the signs read. “Go around. Or we will hunt you down and put you in Goliad County jail.” He said they worked—when the signs were up, cartel activity decreased, and when the Texas Department of Transportation (DOT) removed
(Top) Border Patrol agents apprehend about two dozen illegal immigrants in Penitas, Texas, on March 11. 2021. (Above) Martin Lazaro Bieya, an illegal immigrant from Mexico, sits in the Goliad County jail after being caught in Goliad, Texas, on June 23.
the signs, cartel activity picked up again. Boyd had to stop putting up the signs after an attorney general opinion came back saying a county isn’t authorized to place signs without approval from the DOT. “We have a whole list of rules, we have a Constitution, we have laws,” Boyd said. “The cartel only has one: to make money. So it makes them very quickly adaptable to whatever situation they find themselves in. They’re constantly morphing.” Boyd arranged a deal with Bieya that if he gave him as many details about his journey as possible, he’d recommend that U.S. Immigration and Customs Enforcement (ICE) allow him to stay in the United States. Boyd said Bieya will likely be released—with the 3,000 pesos (about $150) he brought—within the next two weeks, to his uncle in Detroit. “Hopefully, it’ll save him from winding up in indentured servitude [to the cartel],” Boyd said. I N S I G H T August 5–11, 2022 35
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SPOTLIGHT
Narrow Escape A KITTEN WITH SINGED WHISKERS THAT survived the McKinney Fire hides in rocks in the Klamath National Forest, northwest of Yreka, Calif., on July 31. The wildfire near the Oregon border has burned more than 58,000 acres, as of Aug. 4. PHOTO BY DAVID MCNEW/AFP VIA GETTY IMAGES
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Tesla cars recharging at a Tesla Supercharger station, located next to Pasadena Water and Power, in Pasadena, Calif., on April 14.
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Nation Infrastructure
E N E R GY P O L I CY
ELECTRIC VEHICLES versus THE POWER GRID
How mass electric vehicle adoption will affect the electrical grid
I
By Katie Spence
PHOTO BY MARIO TAMA/GETTY IMAGES
n january 2021, the biden administration announced its plans to transition the United States to 100 percent “clean” electricity by 2035, and by 2030 to have half of all new vehicles sold be zero-emission vehicles. One hundred percent clean energy by 2035 is an ambitious goal, and adding a considerable amount of electric vehicles (EV) to the country’s power grid is forecast to increase electricity demands substantially. For example, in 2021, EV sales reached 6.6 million, according to the Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL). And the increase in just light-duty EVs added 1,700 gigawatt-hours in annual energy load to the U.S. electric grid, according to the independent and nonprofit energy research firm Electric Power Research Institute. Pointedly, projections from the International Energy Agency put EV sales at 23 million by 2030, meaning the grid will soon need to handle substantially more than 1,700 additional gigawatt-hours annually. Utility companies have proposed billions in new infrastructure projects to meet the forecasted increase. And the DOE has asked a consortium of research labs such as Pacific Northwest National Laboratory and NREL to contribute to an
integrated systems analysis report on the impacts of EVs on the grid. These labs found that the grid can handle high-penetration EV scenarios by applying specific strategies. “Electric vehicles (EVs) can meet U.S. personal transportation needs using domestic energy resources while at the same time offering carbon emissions benefits. However, wide-scale light-duty EV adoption will necessitate assessment of and possibly modification to the U.S. electric power generation and distribution systems,” the Summary Report on EVs at Scale and the U.S. Electric Power System reads. Indeed, if EV sales reach the high-penetration scenario of 6.8 million annually, and travel 12,000 miles a year while requiring 3.8 megawatt-hours per year of energy generation per EV, the total increased energy demand for EVs on the grid will equal 26 terawatt-hours (TWh), the report further reveals. A separate report by Matteo Muratori, NREL’s team lead for integrated transportation and energy systems analysis, found that high EV integration could result in a 1,424 TWh electricity consumption increase by 2050.
Preparing for Higher Demand To determine what strategies are required to facilitate this high EV adoption, Insight spoke with Andrew Meintz, NREL’s project lead for electric vehicle grid integration. Meintz said that, generally speaking, greater EV use will lead to higher electricity demands, and the grid would need to be “built out” to accommodate the increase. He likened this to the early 1900s, when home air conditioners necessitated upgrades to the electric grid. “ACs were a pretty big load, but we built additional distribution and transmission to handle it,” Meintz stated. However, he said there are now ways to mitigate electric distribution and transmission upgrade requirements, and one way is through smart charge management. Specifically, Meintz said that the electric vehicle supply equipment—the Level 1, Level 2, and DC fast chargers that you plug your vehicle into—can be programmed to charge your car at specific times during the day. Similarly, the vehicle itself can be programmed to charge at off-peak hours. How that works, Meintz said, is utility
companies set time of use charging rates, and those rates vary based on demand and electricity availability. For example, if you charge your EV when you get home from work when demand is high, or “onpeak,” you’d pay a higher rate. If you wait to charge your vehicle when demand is low, or “off-peak,” you’d pay a lower rate. “The vehicle and charger are smart enough not to require user integration,” Meintz said. For clarity, he specified that users wouldn’t have to go to their garage and plug in their EV at a certain time. Instead, EV owners could plug in when they get home, and the EV would be programmed to charge when electricity demand is low. When asked how moving to green energy sources like wind and solar might impact EV charging, Meintz said it would depend on location and availability. “Wind is really a nighttime resource, and solar is for during the day,” he said. “Some locations might not have enough distribution, but it depends on the locations. “EVs are a resource that can be programmed to charge when that resource is available.”
Uncoordinated Charging When pressed about the grid’s ability to handle uncoordinated EV charging, Meintz circled back to smart charging. However, Muratori’s report states, “Uncoordinated charging of EVs will lead to increased system peak load, possibly exceeding the maximum power that can be supported by distribution systems and generally increasing power system stress.” Moreover, the nonprofit Energy Systems Integrations Group reports that implementing Biden’s clean energy strategy “will require a doubling or tripling of the size and scale of the nation’s [electric] transmission system.” It further states, “Decarbonizing the electricity system, and ultimately achieving net-zero emissions, will require action on a transformative scale,” which would involve “massive nation-wide transmission expansion.” Considering that the U.S. grid is divided into three major regions—including the Eastern, Western, and Texas Interconnection, as well as independent operators at the state and regional levels—moving to a nationwide electric transmission system would be transformative. I N S I G H T August 5–11, 2022 39
ENVIRONMENT
MINING LITHIUM for ELECTRIC VEHICLES
Increased demand for lithium batteries presents significant environmental risks: UN report By Katie Spence
S
News Analysis
ales of electric vehicles (EVs) reached a record 3 million in 2020, according to a report from the International Energy Agency. That’s an increase of 40 percent from 2019 and is in contrast to overall car sales, which saw a 16 percent decrease. The report further estimates that EV sales could reach 23 million by 2030, thanks partly to the Biden administration’s stated goal of half of all new vehicles sold in 2030 being zero-emissions vehicles. Pointedly, lithium batteries are the preferred battery technology because they have the highest charge-to-weight ratio. The push to transition to EVs is driven by key regulations by the United States, Canada, and the European Union, to reduce carbon dioxide (CO2) and greenhouse gas emissions from internal combustion engine vehicles, and transition to a more environmentally friendly future, according to the energy agency. However, the U.N. Conference on Trade and Development (UNCTAD) reports that this uptick in EV adoption
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and increased demand for lithium batteries presents a significant environmental challenge. “As demand for lithium increases and production is tapped from deeper rock mines and brines, the challenges of mitigating environmental risk will increase,” UNCTAD states. Lithium in its pure form doesn’t occur naturally on Earth. Currently, there are two viable ways to obtain lithium: hard rock extraction or evaporation ponds called salar brines. Seawater presents a possible future source of lithium, but because of extensive water, land use, and time requirements, extracting lithium from seawater isn’t feasible. Importantly, due to its cost-effective nature, salar brines are the most com-
monly used method for lithium extraction—66 percent of global lithium resources are from lithium brine deposits, according to UNCTAD’s report. Miners drill holes in salt flats to extract lithium and pump the salty, mineral-rich brine to the surface. Once at the surface, the water evaporates and leaves a mixture of lithium salts, borax, manganese, and potassium. The mixture is then filtered and placed into another evaporation pool, where it evaporates for an additional 12 to 18 months. After that period, lithium carbonate and hydroxide are extracted and can be used to make the cathode materials for batteries. Materials such as cobalt and nickel are processed with lithium chemicals
World Lithium Mining
An aerial view of the state-owned lithium extraction complex in the southern zone of Bolivia’s Uyuni Salt Flat, on July 10, 2019.
500,000
GALLONS
PABLO COZZAGLIO/AFP VIA GETTY IMAGES
It takes approximately 500,000 gallons of water to extract one metric ton of lithium from salar brines, according to a report.
to produce battery electrodes. According to a report from the Institute for Energy Research (IER), it takes approximately 500,000 gallons of water to extract one metric ton of lithium from salar brines. If water were in abundant supply, this heavy demand might be overlooked. But more than 50 percent of lithium resources are located in the “lithium triangle” of Chile, Bolivia, and Argentina, and, UNCTAD reports, this area is one of the driest on Earth. On the jagged plain of Chile’s Salar de Atacama, the Department of the Interior’s U.S. Geological Survey (USGS) reports that it hasn’t rained “for as long as people have been keeping track.” The result is a diverse but fragile ecosystem with scarce water resources.
However, the Salar de Atacama is the largest salt flat in Chile and is rich in lithium salts just beneath the surface. Consequently, it’s become a significant source of lithium mining. Indeed, 65 percent of the region’s water goes toward mining activities, according to IER. The result is a lack of water that’s forced local farmers—who grow quinoa and herd llamas—and nearby communities to abandon their ancestral settlements and find water elsewhere, according to UNCTAD. “We used to have a river before that now doesn’t exist. There isn’t a drop of water,” Elena Rivera Cardoso, president of the Indigenous Colla community of the Copiapó commune, told the National Resources Defense Council (NRDC).
“And not only here in Copiapó but in all of Chile, there are rivers and lakes that have disappeared—all because a company has a lot more right to water than we do as human beings or citizens of Chile.” Copiapó is the capital of Chile’s Atacama region. Additionally, the Atacama region is critical for migratory birds and other animal species, according to NRDC. But, mining activities are impacting these animals, 17 of which are considered endangered in Chile. Lack of water isn’t the only problem in lithium extraction. UNCTAD reports that breathing lithium dust causes respiratory tract irritation, and prolonged exposure to lithium can lead to pulmonary edema. Residents in Argentina’s Salar de Hombre Muerto say lithium operations using hydrochloric acid are contaminating streams, leading to livestock and crop irrigation problems, according to IER. In May 2016, a toxic chemical leak from the Ganzizhou Rongda Lithium mine contaminated the Lichu River in Tibet, killing farm animals and thousands of fish, according to UK organization Free Tibet. The 2016 event was the third such leak in seven years, according to IER. In Nevada, researchers studying the effects of lithium mining found that fish as far away as 150 miles downstream were affected, according to IER. Lithium mining isn’t the only concerning factor with lithium-ion batteries. There are additional chemical elements in batteries, such as cobalt and graphite, which pose social and environmental challenges, according to UNCTAD. In its 2022 report, the USGS reports that in 2021, more than 70 percent of the global cobalt production came from the Democratic Republic of the Congo (DRC) and that southern Congo sits atop an estimated 3.5 million metric tons, which is almost half of the world’s known supply. I N S I G H T August 5–11, 2022 41
World Lithium Mining
Employees work with car batteries at a factory for Xinwangda Electric Vehicle Battery Co. Ltd, which makes lithium batteries for electric cars and other uses, in Nanjing, Jiangsu Province, China, on March 12, 2021.
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“There are carbon dioxide and other greenhouse emissions that come with the process of extraction,” Zeke Hausfather, climate research lead at the nonprofit Berkeley Earth, told student organization Climate360. “[It’s] not like CO2 comes out of the lithium, but it does take energy to mine things—today many of those systems involve emitting CO2. “There’s emissions associated with the processes of mining like CO2 emis-
50%
More than 50 percent of lithium resources are located in the “lithium triangle” of Chile, Bolivia, and Argentina—one of the driest areas on Earth.
sions creating sulfuric acid and other things used in the mining process—the life cycle of all of these things involves some environmental impact.” Research and consulting firm Circular Energy Storage reported that emission results can range from 39 kg CO2 equivalent per kilowatt hour to 196 kg CO2e/kWh, which significantly impacts the potential positive impact of electric vehicles. “If an electric vehicle is using a 40 kWh battery its embedded emissions from manufacturing would then be equivalent to the CO2 emissions caused by driving a diesel car with a fuel consumption of 5 litre per 100 km in between 11,800 km and 89,400 km before the electric car even has driven one meter,” Circular Energy said. “While the lower range might not be significant the latter would mean an electric car would have a positive climate impact first after seven years for the European average driver.”
THIS PAGE: STR/AFP VIA GETTY IMAGES
The problem, according to UNCTAD, is that dust from cobalt mines often contains toxic metals such as uranium, and DRC mines may contain sulfur minerals that can generate sulfuric acid. When exposed to air or water, sulfuric acid can lead to acid mine drainage, polluting rivers and drinking water for hundreds of years. And up to 40,000 children are estimated to be working in these mines under slave labor conditions. In 2021, China was the leading graphite producer, producing an estimated 79 percent of the world’s total output, according to the USGS report. The USCTAD report says that graphite mining has similar environmental impacts to cobalt mining; it leads to contaminated soils, water, and toxic dust. Finally, in addition to the above-stated problems, mining battery components emit a fair amount of CO2, which varies based on specific mining and manufacturing processes.
P OL I T IC S • E C ONOM Y • OPI N ION T H AT M AT T E R S
Perspectives
No.31
Former President Donald Trump speaks at the Turning Point USA Student Action Summit, held at the Tampa Convention Center, in Tampa, Fla., on July 23. PHOTO BY JOE RAEDLE/GETTY IMAGES
FLAT TAX NOW Manchin’s latest U-turn highlights the importance of a flat tax amendment. 44
TOP REPUBLICANS PUSH FOR ‘AMERICA FIRST’ AGENDA
WHY ARTIFICIALLY LOW RATES ARE BAD
Trump allies prepare for a possible red wave in 2022. 47
Bubbles and excess debt won’t form if rates float freely. 48
INSIDE I N S I G H T August 5–11, 2022 43
THOMAS MCARDLE was a White House speechwriter for President George W. Bush and writes for IssuesInsights.com.
Thomas McArdle
Flat Tax Now
Manchin’s latest U-turn highlights the importance of a flat tax amendment
T
hose who know the value of freedom most keenly are those who have lived under totalitarianism. When the Eastern Bloc nations were finally liberated more than three decades ago now, it was no surprise that they sought capitalism like a man lost in the desert yearning for water. But what did astound many was the undiluted form of the free market policies they embraced. As explained by Estonia’s then-ambassador to the United States, Eerik Marmei, when the country was honored by the nonpartisan Tax Foundation for having the most competitive tax system in the world: “After Estonia regained independence in 1991, the country needed a tax system that was compatible both with the limited experience of the taxpayer who came from the Soviet communist controlled society and effective tax administration. It was essential that the tax system should support economic growth, not impede it.” Estonia enacted a flat tax rate of 26 percent in 1992, which was then reduced to 20 percent, with reinvested corporate profits not subject to income tax, one of the simplest tax regimes in the world. “It is important to recognize that simple and clear rules of taxes create confidence among businesses, promote business expansion, capital investment, and most importantly, create jobs,” Marmei said. “One of the strengths of our tax system is its broad tax base which has enabled us to collect enough taxes, thus contributing to retaining the balanced budget and a low level of general government debt. Today, Estonia has the lowest general government external debt level in the European Union.” Lithuania followed Estonia and adopted its own flat tax in 1994, as did
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Latvia in 1995, the Russian Federation in 2001, the Slovak Republic and Ukraine in 2004, and Georgia in 2005. Romania set a 16 percent flat tax in 2005 and Albania a 10 percent flat tax in 2008 (later altered to two rates of 23 percent and 13 percent). Hong Kong’s long-established 16 percent flat rate on business and property tax income, a low ceiling of 17 percent on labor income, and no double taxation on individual or reinvested profits, as in the United States, obviously go far in explaining the island’s many decades of immense prosperity.
In the case of the United States, a low, flat tax rate regime that does not punish success by imposing a higher bracket on entrepreneurs who achieve their objectives and fulfill their dreams will only become a reality if it is enshrined in our Constitution. And as Cato Institute economist Alan Reynolds has pointed out: “Even in the static sense, the U.S. does not have much revenue to show for income tax rates that are at least twice as high as they are in Hong Kong. Over time, there is no contest. Hong Kong’s tax receipts have increased three times as fast as those of Uncle Sam.” Hong Kong’s position for more than a half-century as the unlikely economic miracle of the Pacific has cemented its tax system in place, and even the political interference and persecution of individual rights by communist China in recent
years may not upend it. In the Soviet satellites, the need for swift transition eased the adoption of something with the potency and simplicity of a flat tax. In the United States, unfortunately, a massive bureaucratic state and a large array of special interests have always made radical simplification, such as the three-page, 1,010-word flat federal tax code proposed by presidential candidate Carly Fiorina in 2015, next to impossible. The last major tax reform—far removed from a flat tax—was more than 35 years ago, and the deal we saw in the last week between Sen. Joe Manchin (D-W.Va.), and Senate Majority Leader Chuck Schumer (D-N.Y.) to impose a new 15 percent minimum tax on big companies, hammer private equity firms by closing a loophole that lets some of their earnings be taxed at the lower capital gains rate, and handing $80 billion to an already heavy-handed and politicized Internal Revenue Service is only the latest evidence that politicians can’t resist cluttering the tax code with new burdens every chance they get—even when we’re on the threshold of recession. Manchin and Schumer even have the audacity to call their new taxes and spending the “Inflation Reduction Act,” a claim that would make a snake oil peddler blush. In the case of the United States, a low, flat tax rate regime that doesn’t punish success by imposing a higher bracket on entrepreneurs who achieve their objectives and fulfill their dreams will only become a reality if it’s enshrined in our Constitution. That would mean the difficult process of a constitutional amendment—or an Article V constitutional convention of the states, as recently proposed by 2012 presidential candidate Rick Santorum. Either path will take collective political leadership that today seems far from materializing.
ANDERS CORR is a principal at Corr Analytics Inc., publisher of the Journal of Political Risk. He is an expert in political science and government.
Anders Corr
China Compromises the Fed
China is paying Fed officials for information and influence
new congressional report reveals that U.S. economic officials have pursued money and positions from China as part of programs that sought “malicious, undisclosed, and illegal transfers of information that seek to undermine the United States.” The 40-page Senate report, based in part on an internal investigation by the U.S. Federal Reserve System, shows that Beijing has sought for more than a decade to develop a spy network, steal confidential economic information, and “gain influence” within the Fed. The FBI provided the Fed with a list of necessary counterintelligence measures, but rather than take them seriously, Fed Chairman Jerome Powell second-guessed and cherry-picked the FBI recommendations, according to the report. The Fed itself has demonstrated incompetence by losing some of the materials upon which the investigation was based. Powell didn’t respond to a request for comment by press time. According to the Senate report, a Fed economist was detained four times during a 2019 visit to China. Chinese officials forced him into a hotel room in a “frightening” manner, accused him of crimes against China, threatened to imprison him and harm his family, and told him they had monitored his phone for information, including information about his divorce, he said. They wanted him to “say good things about China” in the United States, provide confidential economic information, and ensure his silence about the relationship. Since 2013, Chinese “talent recruitment programs” have sought inside information on the Fed’s view of the economy and its upcoming policy changes, including tariffs and interest rates, according to the report. In exchange, senior staff within the Fed were offered as much as 1 million yuan
(approximately $150,000 by today’s exchange rate), free travel, distinctions, and research expenses to be “experts,” coauthors, and professors at Chinese research institutes and universities. One 2010 communication from China’s talent program to a U.S. professor and Fed economist discussed the need for “high-level Chinese economists” for “part-time service in China [that] pays a high salary.” The Fed economist applied to China’s Thousand Talents Program, obtained a position at a Chinese university, and collaborated in research with the People’s Bank of China, including the sharing of Fed computer code used for economic prediction.
Since 2013, ‘talent recruitment programs’ have sought inside information on the Fed’s view of the economy and its upcoming policy changes. The report states that another Federal Reserve employee was removed from their position “in large part due to their assistance in attempting to access restricted information at a Federal Reserve bank for a Chinese media outlet (China Global Television Network) designated by the U.S. as a foreign agent.” The report reproduces a letter from another employee, who was incentivized with a possible $150,000 payment. He gave confidential information on the private views of a Fed chairman about rate hikes, which are the most consequential of Fed actions. Shanghai’s Fudan University offered another Fed economist a three-year contract, starting in 2018, for an annual salary and research funds of approximately $45,000 (in Chinese yuan), to spend just four weeks annually on a campus in China and host Chinese faculty and students at the Fed in the United States.
Bonuses of up to $15,000 per article would be paid for coauthoring with the institution’s regular faculty. This salary was presumably paid on top of the official’s full-time salary at the Fed. These examples are all part of Beijing’s broader campaign to build a “P-Network,” as the investigation called it, of informants within the Fed who would answer to Beijing. Despite numerous instances of inappropriate disclosures and collaborations with the regime in Beijing, all but one of the 13 individuals retain access to confidential Fed information, according to the report. Sen. Rob Portman (R-Ohio) is leading the campaign to make the Fed clean up its act and has already been successful in getting the bank to ban payments to its officials from foreign countries such as China. The Fed was founded in 1913, so this measure is more than a century late. And much more must be done. Officials who have—at any time—taken money from China, Russia, or any other adversarial nations should be removed for their serious lack of judgment. Similar steps should be taken by not only other federal and state agencies in the United States but in our most important businesses and academic institutions. In 2020, Portman sponsored legislation, along with Senate Democrats, called the Safeguarding American Innovation Act (SAIA) to help protect U.S. research and intellectual property from Chinese Communist Party (CCP) spies. SAIA passed the Senate in June 2021. The current Democrat-controlled House stripped the SAIA from upcoming legislation. It should be reintroduced and passed immediately, or Beijing’s future IP theft will be the fault of Democrats in addition to the CCP. The United States is bleeding out. Congress must take action now. I N S I G H T August 5–11, 2022 45
MILTON EZRATI is chief economist for Vested, a contributing editor at The National Interest, and author of “Thirty Tomorrows” and “Bite-Sized Investing.”
Milton Ezrati
Clear Indications of an Impending Recession
If the economy is not yet in recession, it will be soon
hen the spring quarter’s gross domestic product (GDP) showed a decline, a great media debate ensued about whether the economy is already in recession. Those who say yes point to the commonly held definition that a recession is two consecutive quarters of declining real GDP, and the news seems to fit that criterion. The White House, understandably, resists this view, and references more subtle definitions. But for those who want to live in the real world, this debate smells of sterile semantics. Reality is clear: The U.S. economy is weak, and if not already in recession, it’s likely to go into one relatively soon. Indeed, the economic harm of inflation and the financial strains of the Federal Reserve’s (Fed) efforts to fight it make recession all but inevitable. The worst economic news to date came with the July 28 GDP report from the Bureau of Economic Analysis. Overall, it shows real economic activity declining at a 0.9 percent annual rate. More telling is the widespread nature of the weakness. Real consumer spending showed modest real growth but slowed dramatically from the pace of the year’s first quarter. Residential construction tumbled in real terms at a 14 percent annual rate. Business spending on structures and equipment, including technology, also fell. Even real government spending shrank. And that wasn’t the only bad news. The Purchasing Managers’ Index for July came in at a level of 47.5, well below the level of 50 that demarcates the distinction between growth and decline. One part of the Labor Department’s employment report, the part 46 I N S I G H T August 5–11, 2022
that surveys households, shows an employment decline of 315,000 for the month of June. Not all figures were downbeat though. The Labor Department’s survey of employers shows a marked contrast from the picture provided by households, indicating a 372,000 jump in June payrolls. Retail sales for June showed a robust rise of better than 12 percent at an annual rate. New orders for capital equipment increased at an almost 9 percent annual rate over the past couple of months. Though initial claims for unemployment insurance rose in the week of July 16, the figure was still low by broad historical standards.
The White House, understandably, resists this view, and references more subtle definitions. But for those who want to live in the real world, this debate smells of sterile semantics. Whatever the current balance of evidence, the recessionary prospect lies in the likely persistence of inflationary pressures. Of course, ongoing supply chain problems will lift, probably soon, as will the effects of the Ukraine war, even if it drags on. But inflation will persist nonetheless because it mostly stems from more than a decade of extremely easy monetary policies financing Washington’s considerable deficit spending. Consider that in just the past couple of years, the Fed has used new money to buy about $5 trillion in new government debt, the digital equivalent of financing government with the
printing press and a classic prescription for inflation. This kind of well-entrenched inflation could bring on recession all on its own. The longer it lasts, the more its distorting economic incentives will discourage the saving and investment that serve as the ultimate engines of growth. More pointedly, persistent inflation will force the Fed to take more extreme steps than it has to date. As dramatic as the Fed’s actions seem, they have hardly constrained credit or discouraged borrowing and spending. Consider that even after the Fed’s recent, seemingly dramatic moves, the benchmark federal funds rate of 2.25 percent remains well below the rate of inflation. That interest fails to compensate lenders for the lost buying power of the funds when they’re repaid. A strong inducement to borrow and spend thus remains. Before the Fed can break inflation’s momentum, it will have to raise interest rates close to or above the prevailing rate of inflation. That’s a long way from where we are now and would certainly precipitate recession. Fed Chairman Jerome Powell at his last press conference announced that the Fed, as it fights inflation, will strive to achieve what he called a “soft landing,” that is, avoid recession. He also told the reporters that soft landings are historically “rare.” In effect, he put forward recession as the likely result of the Fed’s efforts. If the Fed does its job well, the economic decline shouldn’t extend too far into 2023. If, however, the Fed fails to act forcefully enough, the full extent of the economic setback may be delayed, but it will go deeper and last longer, for then the economy will have to deal with the distortions of a truly entrenched inflation.
EMEL AKAN is a senior reporter for The Epoch Times in Washington. Previously, she worked in the financial sector as an investment banker at JPMorgan.
Emel Akan
Top Republicans Push for ‘America First’ Agenda Trump allies prepare for a possible red wave in midterms this year
DREW ANGERER/GETTY IMAGES
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here’s no question that former President Donald Trump still has a large base of support within the Republican Party, according to his allies. And a recent summit in Washington shows he remains a powerful force in Republican politics. Some former Trump administration officials who founded the America First Policy Institute (AFPI) convened a summit in Washington on July 25 and 26 to present their policy proposals for the next Congress. Trump’s allies are working to make sure that his policies and “America First” ideology remain a central part of the party’s platform as they prepare for a possible red wave in 2022. Linda McMahon, chair of the AFPI board, says that their policy recommendations are all based on the foundations laid by the Trump administration. In an interview with The Epoch Times, she said their objective is to advance the “America First” agenda in the new Congress. McMahon served in Trump’s Cabinet as the head of the U.S. Small Business Administration from 2017 to 2019. She then stepped down to chair the proTrump super political action committee America First Action. She says the No. 1 issue weighing on people’s minds is the economy. The group’s goals include making the Trump tax cuts permanent and continuing the deregulatory environment to bring back the Trump-era economic boom. McMahon predicts the November midterm elections will produce a big win for the Republican Party. “I do believe that the Republicans will retake both the House and the Senate,” she said. “I think in the House by a larger majority than in the Senate, but I think they will regain both of them.” Trump made his first trip back to the nation’s capital since leaving office to deliver the keynote address at the sum-
Trump put strong emphasis on crime, and cost of living, in contrast to what has happened under Biden. mit. In a well-ordered speech, Trump emphasized “safety first” and criticized the crime surge and homelessness under the Biden administration. “Former President Trump pressed all the right buttons—strong emphasis on crime and cost of living, with contrast to what happened to the economy and the border under his successor,” John Gizzi, chief political columnist at Newsmax, told The Epoch Times. “That he touched on these issues rather than dwell on the 2020 election shows he is au courant and forward looking.” Some believe the odds of Trump running for reelection in 2024 have increased after this speech. Meanwhile, President Joe Biden has recently increased his criticism of Trump as talk grows that Trump will run for president again. He accused the former president of inciting a “medieval hell” for police officers during the Jan. 6, 2021, breach of the U.S. Capitol. At the two-day summit, however, top
Republicans said they would continue to push for Trump’s “America First” agenda, and called on conservatives and GOP members to unite behind the former president. “I hope he runs again,” Sen. Lindsey Graham (R-S.C.) said during a panel discussion at the summit. “Let me tell you why: If you think Trump is bad for the party, I disagree with you.” Other notable names who spoke at the summit included Newt Gingrich, Rick Scott, Ted Cruz, Kellyanne Conway, Sarah Huckabee Sanders, Kevin McCarthy, Steve Scalise, and Rick Perry. Some of the key topics discussed at the summit included inflation, energy independence, and the regulatory state. Larry Kudlow, AFPI’s vice chair and former top economic adviser in the Trump administration, cautioned against the Biden administration’s growing regulatory overreach, citing it as one of the factors contributing to the economy’s contraction. He said at the summit that regulatory costs reached more than $200 billion last year, “making it the second costliest year on record.” “President Biden’s 2021 regulatory costs are three times those added in Obama’s first year and nearly 40 times more than in President Trump’s first year,” Kudlow said. The AFPI plans to conduct a series of town halls across the country until the midterms to promote the “America First” agenda. And next January, the group plans to “educate the new Congress and state officials on model legislation and executive actions to advance” the policy proposals in Congress and in statehouses. Aside from shoring up the economy, Trump’s “America First” agenda includes a wide range of proposals, such as ending big tech censorship, giving parents more power, protecting female athletes, completing the border wall, and defeating the drug cartels. I N S I G H T August 5–11, 2022 47
DANIEL LACALLE is chief economist at hedge fund Tressis and author of “Freedom or Equality,” “Escape from the Central Bank Trap,” and “Life in the Financial Markets.”
Daniel Lacalle
Why Artificially Low Rates Are Bad
Bubbles and excess debt won’t form if rates float freely
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The entire economic consensus recognizes that the rate cuts of the early 2000s led to the bubbles that cemented the excess of risk prior to the 2008 crisis. companies has risen to all-time highs in the period of low rates. In the case of governments, negative rates have been a dangerous tool. They’ve made it comfortable to take on vast amounts of debt and make deficits skyrocket. But negative real and nominal rates disguise risk, giving a false sense of solvency and security that quickly dissipates with a slight change in the economic cycle. These extremely low rates generate greater problems as risk accumulates above what central banks and supervisors estimate, starting with governments themselves. Negative rates have fuelled the public debt bubble that will end with higher taxes, higher inflation, lower growth, or all of them together. Of course, the other effect of this economic aberration is high inflation—the tax on the poor. For years, it has generated enormous inflation
in assets by encouraging risk-taking, from the real estate sector to the multiples of industrial assets or infrastructure. Borrowing was unusually cheap, and when credit soars, it flows toward high-risk assets and, of course, the creation of bubbles. It’s surprising. The entire economic consensus recognizes that the rate cuts of the early 2000s led to the bubbles that cemented the excess of risk prior to the 2008 crisis. However, that same consensus applauds the madness of negative rates because there’s a perverse incentive in statism when the bubble is sovereign debt. Following the high inflation in assets, high inflation of consumer prices has arrived, a double negative effect for savers and real wages. The European Central Bank has raised rates—to zero! The biggest increase in 22 years and the first time without negative rates for eight years. With inflation in the eurozone at 8.6 percent, it’s clearly an insufficient and timid rise. When you worry about the cost of a new mortgage going up, think that house prices have skyrocketed well above what we consider affordable precisely because of negative rates. Bubbles and credit excesses always occur after a planned incentive such as artificially lowering interest rates and injecting liquidity above the real demand for currency. If rates fluctuated freely, the creation of bubbles and excesses of debt would be almost impossible because the risk would be reflected in the cost of money. The best way to prevent financial bubbles and crises isn’t to encourage excess risk and debt by artificially lowering rates. Rates don’t have to be hiked or cut by a central planner. They need to float freely. Anything else creates more imbalances than the alleged benefits they promote.
STEFANI REYNOLDS/AFP VIA GETTY IMAGES
he disastrous era of negative rates may be ending, but it isn’t over. Imposing negative nominal and real rates is a colossal error that has only encouraged excessive indebtedness and the zombification of the economy. However, nominal rates may be rising but real rates remain deeply negative. In other words, rates are still exceptionally low for the level of inflation we have. The excuse for implementing negative rates is based on a fallacy: that central banks lower rates because markets demand it and policymakers only respond to that demand; they don’t impose it. If that were the case, why not let the rates fluctuate freely if the result is going to be the same? Because it’s a false premise. Imposing artificially low rates is the ultimate form of interventionism. Depressing the price of risk is a subsidy to reckless behavior and excessive debt. The reader may think I’m crazy because hiking rates makes mortgages more expensive and families suffer. However, you should also ask yourself why house prices rise to unaffordable levels. Because cheap borrowing drives higher indebtedness and makes asset prices significantly above affordability levels. First, prudent saving and investment are penalized and excessive debt and risk-taking are promoted. Think for a moment about what kind of business it is that’s viable with negative rates but not with rates at 0.5 percent: a time bomb. It’s no accident that zombie companies have soared in an environment of falling interest rates. A zombie company is one that can’t pay interest on debt with operating profits, has a negative return on assets, or has a negative net investment. According to a study by the Bank for International Settlements, the percentage of zombie
Fan Yu
FAN YU is an expert in finance and economics and has contributed analyses on China’s economy since 2015.
Should US Fear a New Reserve Currency? Legitimacy of China and Russia’s currency rests on backing
ALEXEY NIKOLSKY/AFP VIA GETTY IMAGES
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t’s long been reported by The Epoch Times that China—and more recently due to the ongoing war, Russia—has been keen to see the U.S. dollar knocked from its perch as the biggest global reserve currency. Russia and China have now begun working on that, which isn’t a surprise. But what is a surprise is the announcement that several emerging market nations are working on it together with Russia and China. Russia Today (RT)—a Russian stateowned English-language media—reported in June that Russian President Vladimir Putin announced that BRIC nations including Russia, China, India, Brazil, and South Africa are working on setting up a new global reserve currency. “According to the Russian president, the member states are also developing reliable alternative mechanisms for international payments,” RT said. Of course, Western nations’ sanctions against Russia and freezing of its foreign exchange reserves have been destructive to Russia’s economy. And the removal of Russian banks from the international SWIFT system means that the country is largely cut off from U.S. dollar transfers. As of Q1 2022, around 59 percent of all allocated global FX reserves were denominated in the dollar, with the euro at second place with 20 percent, according to IMF data. The fact that other BRIC nations such as India and South Africa have joined Russia and China in building a new global currency to combat the dollar’s hegemony is surprising. A coordinated global effort to displace the U.S. dollar shouldn’t be dismissed. The signs have been there all along. Once one of the biggest holders of U.S. treasury bonds, Russia has been selling U.S. treasuries for the past five years. During this time, Russia has also been
The fact that other BRIC nations such as India and South Africa have joined Russia and China in building a new global currency to combat the dollar’s hegemony is surprising. building up its gold reserves. Immediately after sanctions against Russia kicked in earlier this year, one of Moscow’s first responses was to force European countries dependent on Russian gas exports to pay in rubles or gold. Countries complied and bought up rubles and sold off euros. Is a new commodity-backed global reserve currency backed by China and Russia becoming a reality? I wrote in this column in March that it was a possibility, supported by an analysis from Credit Suisse. Russia, after all, is a major supplier of commodities including oil, gas, gold, and diamond. I suggested back then that third-party countries could buy Russian oil at a discount from Russia or by way of China as opposed to paying a premium for non-Russian-sourced oil. That could be the
beginning of a new global order and everything China and Russia had wished for. RT claimed in July that is exactly what had happened. Trade between Russia and other BRIC nations during the first three months of 2022 increased 38 percent to $45 billion. Meanwhile, trade between Russia and China continues to swell. Other nations also have begun accepting currencies other than “petrodollars” for exports, with Saudi Arabia and Iran accepting yuan for their oil. The real question is what form this currency will take. For this currency to have real value, it needs to be backed by more than the credit of the governments of BRIC nations. It must be backed by commodity reserves. Will other countries want to transact in this new currency? At first, not likely. But the landscape could change over time; almost all of the major currencies today are fiat money based on nothing beyond the faith and credit of the issuing country. As political and social foundations are uprooted and challenged around the world and if inflation continues to exacerbate, a new reserve currency backed by gold and oil—in other words, real assets— could be formidable. Before we declare the dollar’s dominance over, it has several indomitable traits. First is that as a currency, it’s strengthening as the Federal Reserve has begun to raise interest rates. The U.S. financial markets remain the world’s largest, safest, most liquid, and most trustworthy market to invest in. In addition, the stability and reputation of the U.S. government and legal system make holding U.S. government bonds preferable to other reserve assets. But in the near term, the dollar should remain a strong reserve currency contender. Perhaps it’s the euro and other currencies that warrant worry. I N S I G H T August 5–11, 2022 49
JEFF MINICK lives and writes in Front Royal, Va. He is the author of two novels, “Amanda Bell” and “Dust on Their Wings,” and two works of nonfiction, “Learning as I Go” and “Movies Make the Man.”
Jeff Minick
Be an Icebreaker
A good conversationalist is also a great listener
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om e peopl e h av e a talent for talk. My friend John can strike up a conversation with just about anyone. The ladies who work at the country market near my house, a woman who operates an ice-cream stand in town, a teen in the coffee shop interested in politics: All have fallen under John’s spell of words and thoughts. His amiable nature along with his voice, which is charged with enthusiasm and goodwill, encourages others to open up and share their thoughts. When asked where he’d acquired these skills, John credits the time he’d spent years ago as a ski bum in Montana, when he’d worked as a waiter and a bartender. “If you wanted to keep your job and make the tips, you were pleasant and talked and listened to people.” Not that John’s a glad-hand kind of guy. “Put me in a room of strangers,” he says, “and I’ll never approach anyone. But if someone breaks the ice, I’m all in.” One of my sons, known as J.P. to his friends, possesses this same gift for connection. Like John, he once worked as a waiter. In high school and college, he appeared in plays, and for a year was on the staff of a Virginia gubernatorial campaign. For a decade, he worked in sales for a software company, where he was a raging success. More boisterous than John, J.P. lights up a party. Engaging with strangers for him means asking where they’re from and what they like to do. People sense that this is no façade, that he’s genuinely interested in them. Google “great conversation starters,” and you’ll find a slew of websites offering tips on how to keep a conversation flowing. Common to all these lists are points that John
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The practice of these same arts can broaden the mind and deepen the spirit. and J.P. already practice. They show an interest in others, ask questions, and are excellent listeners. Both are wellread and able to engage in topics from movies to politics. Both are attuned to the feelings and facial expressions of those with whom they’re speaking. These skills, which we can acquire through practice, can open all sorts of doors. In the workplace, clear communications are vital to the success of any enterprise. But if we go beyond this norm, if we ask a fellow employee about her vacation or inquire after a sick child, we can create bonds that may eventually turn into friendships, making for a better work environment, yes, but also bringing into our lives the gift of another human being. Well-chosen words and a listening ear can also strengthen the ties of love. The husband who turns off the TV when his wife asks to talk, or the mom who offers her sobbing teenager solace
for an insult delivered on social media have an impact much greater than their words alone. Simply by being present and in the moment, they’re making a difference. And then there’s the sheer pleasure of good conversation. When I see John, J.P., or people like them talking to others, laughing, or nodding at something they’ve said, the enjoyment in this exchange is truly beautiful. If they’re with old friends, they’re often sharing memories, strengthening the foundations of their relationship. If they’re new to the other, they become explorers, detectives seeking clues to the mysteries of this stranger. In Daniel Pink’s recent book “The Power of Regret,” we find that many of the men and women he interviewed regretted most of all the words spoken or unspoken from their past, the harms they caused others by what they carelessly said or failed to say. Learning the art of conversation can help us avoid such regrets. Much more importantly, however, the practice of this same art can broaden the mind and deepen the spirit.
SCAN TO WATCH NOW
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Nation Profile
THOUGHT LEADERS
The Erosion of Truth Zuby talks transgenderism, COVID disinformation, and the value of personal responsibility
“Every person on this earth was birthed from a woman, every human who’s ever walked the planet.” Zuby, rapper, author, fitness coach, and political commentator.
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very person on this earth was birthed from a woman, every human who’s ever walked the planet,” says Zuby, rapper, author, podcaster, and fitness coach. “This shouldn’t be something that’s hotly contested, but that’s where we are.” In a recent episode of “American Thought Leaders,” host Jan Jekielek sits down with Zuby (the stage name of Nzube Olisaebuka Udezue) to discuss his rise to fame and our current political moment, ranging from transgender athletes in women’s sports to the importance of personal responsibility. JAN JEKIELEK: I was
looking at your music video for “Underrated.” I thought to myself, let’s hear your origin story. ZUBY: I was born in the UK.
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FROM L: OTABIUS WILLIAMS/THE EPOCH TIMES, ANDREW REDINGTON/GETTY IMAGES
My parents are originally from Nigeria. My dad’s a doctor, my mom used to be a journalist, and I’m the youngest of five kids. After living in the UK for a short time, my family moved to Saudi Arabia, so all my earliest memories started there. I was in the school system until fifth grade, an international school with an American curriculum. When I was 11 years old,
Nation Profile
I went to boarding school in the UK. I went back and forth between the two countries multiple times per year. I did well in school and got into Oxford University, where I studied computer science. I also started my music career when I was in university, releasing my first album, “Commercial Underground” in 2006. I worked in the corporate world for three years, and, in 2011, I took the plunge to become a full-time musician. I started as a rapper, putting out albums and touring around the UK and different countries. In 2019, I started my podcast, “Real Talk With Zuby,” and had my online viral explosion when I identified as a woman and broke the British women’s dead lift record. MR . JEKIELEK: What pos-
sessed you to do this dead lift scene? ZUBY: I’d been keeping an
eye on this notion of people selecting their gender. Then stories started popping up where biological males were competing against women, and, in many cases, thrashing them, breaking their records in sports like swimming and weightlifting. And I thought, “This is crazy.” Then I thought, “I’m really good at dead lifting. I wonder what the British women’s dead lift record is in my weight class.” I did a quick search, and I think it was 210 kilos. My personal best was 275, and I had a video on my phone where I was lifting 230. So I went on Twitter—I had 18,000
A woman walks past street art depicting a health worker, in the Shoreditch area of London on April 21, 2020. followers—and tweeted something along the lines of, “I keep hearing about how biological men have no strength advantage over women in 2019, so watch me destroy the British women’s dead lift record without trying. P.S. I identified as a woman whilst lifting the weight. Don’t be a bigot.” I put that out, thinking it was kind of funny. Within 10 minutes, it had over 10,000 views. It hit 100,000 views within the first two hours. Likes, retweets, shares—it just went crazy. The next day, it hit a million views. And it just snowballed. From September to November 2019, here in the [United] States I did some massive interviews: Joe Rogan, Ben Shapiro, Tucker Carlson, Candace Owens. That was the year the USA discovered me. MR . JEKIELEK: Who sees
you as controversial? ZU BY: In a sane world, I
would be one of the least controversial people. I’m a pretty straight, downthe-line guy. This is how I was raised. I’ve never been someone who swears a lot. I don’t drink alcohol. I’ve never done any drugs. I’ve never even smoked a cigarette. And when it comes to my opinions, they’re pretty sane. My album from 2006 wasn’t controversial. If anything, people thought it wasn’t edgy enough. Here’s this Oxford boy trying to rap and he’s got nothing interesting to say. What’s funny is I have a lyric there where I say my ideas are inconceivable, like men giving birth. The wordplay, right? Now we’re living in a time where people are arguing that men can indeed give birth. Less than 16 years later, there is this debate: What is a woman? What is a man? It’s so odd. Ten years ago, even the most progressive person would agree that males shouldn’t compete against females in sports.
The notion that truth exists and is deeply important has really been eroded. You see this from individuals to institutions. The goal of academia should be the pursuit of truth, but now it’s about indoctrination and activist agendas. The goal of the news media should be to pursue and report on truth, but that doesn’t seem to be the interest anymore. Politics is becoming more disingenuous. And the conversations around so many issues have become games of trying to demonize other people. I recognize that a lot of things are gray. They are nuanced, and there are tradeoffs. But there are also things which are black and white. Two plus two does equal four. But if you can convince people that two plus two equals five, you can make them believe absurdities. Every person on this earth was birthed from a woman, every human who’s ever walked the planet. This shouldn’t be something that’s hotly contested, but that’s where we are. And people often know the truth, but they’re afraid to say it. People who even ask questions are persecuted. So, you’ve got a debased society. We’ve always agreed, for example, that children need special protection. Now, people are pushing against that line, saying that children can make life-altering decisions about themselves, or wanting to teach 6-yearolds about sexual topics. And look at this bizarre I N S I G H T August 5–11, 2022 53
Nation Profile
“Now people are pushing against that line, saying that children can make life-altering decisions about themselves, or wanting to teach 6-yearolds about sexual topics.” vaccination effort, where they’re trying to jab babies for something they have zero risk for. That’s a line, again, that’s being crossed. MR . JEKIELEK: Lower-
ing the age of consent for vaccines is another element. And people moving to normalize pedophilia. ZUBY: Drag queen shows
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dren’s book is “The Candy Calamity.” One important theme in it is personal responsibility. ZUBY: Personal responsi-
bility has also been eroded over the last few decades. This stems from the notion that human beings are somehow perfectible, blank slates who are products of their environment. If someone commits a crime, it’s purely because of environmental and social factors. But I believe you have free will. You can’t choose the cards you’re dealt, but you can choose how you play the hand. The situation you’re born into, you have zero control over. You’re not in control of many things. But the one thing you can control is yourself and your choices and reactions. MR . JEKIELEK: You’re
essentially saying that we need strong moral principles, which religion has traditionally provided. But religion has also been eroded. What’s the way forward? ZUBY: I think there are
multiple paths forward. I’m a Christian, and I still think traditional religions are strong paths for moral guidance that have worked for billions of people. Not everyone is a person of faith, but there are other ways one can find moral guidance, and stay away from nihilism and destruction. What I’m advocating stems from genuinely wanting to see people fulfill their potential and to live upstanding, purposeful lives. Even if we can’t all maximize our potential, we can at least strive to do that. This interview has been edited for clarity and brevity.
A 7-year-old girl receives a dose of pediatric Pfizer COVID-19 vaccine at a vaccination clinic at Emmanuel Baptist Church in San Jose, Calif., on Nov. 3, 2021.
THIS PAGE: JUSTIN SULLIVAN/GETTY IMAGES
for children and having men stripping and twerking in front of 5-year-olds. How is that even a reality? Why am I seeing videos of grown men dancing for little kids, or little kids dancing for grown men in gay clubs? How on earth can anyone look at that and say, “Oh yeah, that’s good. That’s progressive.” People who call themselves progressive are often regressing the society. We grew up saying, you don’t judge people based on their race. They’re now saying, “No, no, you must judge white people this way. You must talk to black people this way.” These are steps backwards. And when people have
these grand notions of creating some type of utopia, it can rapidly turn into totalitarianism and dystopia. Look at what happened throughout the so-called pandemic. This virus comes out. It’s got a scary name, and people are seeing videos of people dropping in the streets, and they’re hearing this and that, and it scares them. The media and the politicians are scaring people. It was easy for governments to shut people in their houses, to force them to cover their faces, all under the guise of health, safety, science, and experts. Those are the four magic words they kept pumping out. In early 2020, I thought, “Something is happening here, and the truth is not the truth.” Doctors and scientists were being silenced, and there was no room for dissent or argument. And I kept noticing the threeword sentences. Wash your hands. Practice social distancing. Wear a mask. Take the jab. It was duh, duh, duh. Duh, duh, duh. Like people being programmed.
MR . JEKIELEK: Your chil-
T R AV E L • F O O D • L U X U R Y L I V I N G
Unwind
No.31
Cancún’s fabulous Underwater Museum of Art has the distinction of having fish as tour guides. Consider a road trip to see the country and explore equally unique exhibitions. PHOTO BY NETVREMENI/SHUTTERSTOCK
Curious Collections: Museum Road Trips COMPRISING THOUSANDS of beautiful islands and mountains, as well as 17 World Heritage Sites, Greece is a traveler’s delight. 58
PLANNING THE SEASON’S first ski trip is a great way to spend a hot summer day, so here’s a collection of new gear that will have you shredding the runs in style. 63
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WHILE SOME HAVE extolled the agave plant for its supposed health benefits, its best-known product is clearly all about fun. 66
INSIDE I N S I G H T August 5–11, 2022 55
An Island Home
IN A DREAMLIKE SETTING This remarkable villa in a setting straight out of the tales of Hercules would make an ideal getaway for a large family By Phil Butler
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An aerial view of Sappho reveals the exclusive seafront estate on the aquamarine Aegean. Situated at the extreme north end of Paros Island, the property is in close proximity to the picturesque village of Naoussa.
Lifestyle Real Estate
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ALL PHOTOS COURTESY OF GREECE SOTHEBY’S INTERNATIONAL REALTY
reathtaking, magnificent, splendid, and impressive are adjectives used to describe marked aesthetic value. These and many other such words certainly suit the Pnoe estate on the Cycladic island of Andros. This property is nothing short of a dream carved into a legendary landscape. Listed for $3.8 million, Pnoe is a powerful expression of Cycladic elegance set high on a hillside overlooking the blue Aegean Sea. The 0.94-acre waterfront estate features a marvelous three-level villa, finely landscaped grounds and gardens, and its own private beach. The 4,532-square-foot main house is an architectural gem with six bedrooms and seven baths. On the ground level, there’s a stunning main living room, a second sitting/lounging area, and an open-plan kitchen with a breakfast area. Upstairs, the villa has not one but two master bedrooms with en suite features and an office, each with a breathtaking view out over the sea. Downstairs on the lower level, there are two guest suites with en suite features and another complete kitchen. The villa also has a fitness
room, a laundry, and cavernous closets and storage spaces. Outside, there’s an array of living/entertainment areas, including a fully equipped BBQ/ kitchen, several lounge areas, and a large terrace for bigger gatherings. Midway between the villa and the private sandy beach with its crystal aquamarine backdrop, a private yoga area offers a perfect perspective for absorbing the energy of the Aegean. The property has a guesthouse, its own well, and a laundry list of other amenities you’d expect in such a luxurious estate. Andros is one of the Cyclades islands closest to Athens. By ferry, it’s also connected to other islands in the chain, including Mykonos, Paros, Naxos, and Syros. Andros is most notable for its ancient history and its natural beauty, amazing beaches, and picturesque villages. Pnoe is situated only a couple of minutes from the quaint village of Batsi and a short drive from the famous cosmopolitan maritime town of Chora. Phil Butler is a publisher, editor, author, and analyst who is a widely cited expert on subjects ranging from digital and social media to travel technology.
PNOE ESTATE ANDROS, GREECE $3.8 MILLION • 6 BEDROOMS • 7 BATHROOMS • 4,532 SQUARE FEET • 0.94 ACRES KEY FEATURES • SEAFRONT LOCATION • PRIVATE BEACH • PANORAMIC VIEWS AGENT GREECE SOTHEBY'S INTERNATIONAL REALTY GEORGE KASIMIS, HEAD OF AEGEAN SALES +30 210 968 1070
(Above) The villa enjoys an idyllic setting overlooking the sea. (Top Right) The modern Cycladic architecture is a Spartan mix of stylish accents and simplistic livability. Here, you have one of the living spaces, with wood beams and large glass areas for capturing the spellbinding views of the Aegean. (Right) The path to the private beach has several stop-off spots for reading a bestseller or just staring out to sea. I N S I G H T August 5–11, 2022 57
Travel Hidden Greece
As tourists head to the usual Greek islands, it may be worth finding an offthe-beaten-path option— such as Porto Heli.
Greek Riviera
Luxury abounds in Porto Heli, located on a golden stretch of the Peloponnese coast
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hose familiar with traveling across continents, hopping oceans, and skipping over time zones know that jet lag is tough. And that first day in a new destination, after a less-than-stellar night trying to sleep upright? The toughest. That’s how I found myself dozing rather heavily as my taxi wound through some of the most awe-inspiring mountain beauty in the Adriatic. Heading away from the airport after a trans-Atlantic flight, we skimmed past Athens, heading west on a flat, fast freeway. But before long, the cab left the busy highway and rolled into a landscape usually reserved for storybooks, romantic paintings, and Technicolor dreams about the Mediterranean. Honestly, I fought the urge to sleep. One minute I would be marveling at a peek-a-boo view of aquamarine, the blue sea visible through a
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narrow, steep-sided valley; the next, I would catch myself snoring. I would challenge myself to keep my eyes open long enough to see what was around the corner of another switchback, one of dozens along the route. In that jet lag haze, my arrival in Porto Heli, Greece, felt even more like a dream. Soft sea breezes cooled the natural heat of a summer afternoon in southern Greece. A cool drink was slipped into my hand before I had even checked into the hotel. A fresh-seafood lunch, capped off by a coffee, waited to help fuel the rest of the day. Porto Heli (sometimes called Porto Cheli) is tucked away on a hidden corner of the Peloponnese Peninsula. When most North Americans picture a Greek beach vacation, they usually think of islands, especially Santorini and Mykonos, which are receiving a crush of American tourists this summer. So you’ll have to search a bit to escape the crowds. It’s a good thing that—even by Peloponnese
GREECE Athens Porto Heli
Porto Heli is located about 2 1/2–3 hours by road from Athens.
FROM TOP L: AERIAL-MOTION/SHUTTERSTOCK, TIM JOHNSON COURTESY OF NIKKI BEACH PORTO HELI, COURTESY OF NIKKI BEACH PORTO HELI
By Tim Johnson
Travel Hidden Greece
standards—Porto Heli is a bit remote. Connected to the rest of mainland Greece by the Isthmus of Corinth, the Peloponnese has a long history. The Mycenaeans—a Bronze-Age people and Europe’s first major civilization with roots reaching back to 1750 B.C.—were based here. This is the land of Sparta and Argos and where the first Olympics were held, on the western side of the peninsula, in 776 B.C. Porto Heli is set on the tip of a finger of land behind a curtain of mountains, reachable only by winding two-lane roads. The totally worthwhile effort to get there is part of the experience—the reward of being there is reserved for just a relative few willing to make the trip. Until fairly recently, Porto Heli was just a sleepy little fishing village, and the small-town friendliness there remains. Now it’s home to a small handful of hotels, and Nikki Beach Resort, my home for a few days, is one of the finest. After a long journey, I spent most of my time in pursuits befitting a beach vacation. I sipped rosé and enjoyed the view of the Argolic Gulf, indulging in a massage at the spa and eating a late-night, long dinner at Qurio, the hotel’s rooftop restaurant, where the menu is curated by Arnaud Bignon, a chef with two Michelin stars.
Honey Farm I learned a little more about the people who work the land there. Rolling up another series of switchbacks, a friendly taxi driver deposited me on a sunny hilltop, crowned with a series of stone buildings. A young woman named Eleni greeted me with a bright smile, welcoming me to Ermioni.
She walked me around a farm that has been in her family for five generations. The road leading from the capital to this area is a recent addition, she said, noting that her grandfather had to sail his goods to Athens by boat. “It was a really old boat. You couldn’t be sure you’d survive,” Eleni said. Today the farm has grown its modest bee operation to an apiary with more than 600 hives. I saw old, traditional equipment used by former generations, such as a clay smoker, and a crank-style extractor, from the days when honey was gathered by hand. We walked past the hives, and she told me about the importance of healthy bees to properly pollinate our natural environment, noting that they’ve planted 10,000 different herbs. The tour included a tasting, from thick and creamy honey made from heather to the stronger, earthier flavor of a batch made from thyme. It’s a big operation now, with four seasonal harvests yielding 10 tons of honey every year. They bottle it on site and also use it in a variety of natural products, including lip balm, soap, and sunscreen. After a little wine and cheese slathered in honey, I was returned to Nikki Beach to pack and head for the hills. The seething streets of Athens awaited, but this time I was awake. I was sad to leave this tucked-away paradise of Porto Heli, although I was excited for the drive with my jet lag behind me. This time I appreciated every curve, peak, valley, and vista, all the way back to the city. Tim Johnson is based in Toronto. He has visited 140 countries across all seven continents.
FROM
Porto Heli you can easily visit
glamorous Spetses and historic Hydra.
If You Go Stay: Set right on the sand, Nikki Beach offers 66 rooms and suites just steps from the sea. Qurio has an upscale vibe, or you can enjoy pizza and pasta seasoned with salty breezes at Cafe Nikki. There’s also a full service spa, a swim-up bar, and lovely poolside loungers where you can soak up the sun. Take Note: During the summer, when afternoon temperatures reach the 90s almost every day, it’s best to book any excursions in the cool of the morning, including a visit to the apiary at Ermionis.
(Above) The apiary at Ermionis. (Middle) Nikki Beach’s upscale restaurant, Qurio, at night. (Right) An attendant prepares the spa beds at Nikki Beach. I N S I G H T August 5–11, 2022 59
EXPLORING OFFBEAT MUSEUMS
RDEOSTAINDAOSTRIP
UN S A L Keep the summer fun going by piling into the car to explore some roadside attractions By Bill Lindsey
You’ll need to wear a swimsuit to enjoy the exhibits at Cancún’s Underwater Museum of Art.
60 I N S I G H T August 5–11, 2022
Lifestyle Exploring Offbeat Museums
LEFT PAGE: COURTESY OF MUSEO SUBACUÁTICO DE ARTE; THIS PAGE FROM TOP: PINBALL HALL OF FAME, USA-PYON/SHUTTERSTOCK, INTERNATIONAL SPY MUSEUM, REGINE POIRIER/SHUTTERSTOCK
T
he smithsonian in Washington, D.C., and the American Museum of Natural History in New York City are indeed epic repositories of items not normally seen by most of us, but the following collections offer a glimpse of things that are truly unusual. It’s easy to think of museums as the dusty, ill-lit, dank buildings full of boring old bones visited during grade school field trips, but the reality is that there are many museums that hold contents guaranteed to keep you thrilled, captivated, and dreading the arrival of closing time. Let’s take a virtual tour of just a few of the truly noteworthy collections open to the public. If we missed a favorite, let us know so we can add it to the next installment of “Museum Road Trips.” Las Vegas is home to many interesting entertainment options, including spectacular floor shows, fabulous magicians, and stellar concerts. There are, however, several other, less well-known attractions you might want to consider the next time you’re in the area. Spooky fun is a sure bet at Zak Bagans’s The Haunted Museum. Set in a “possibly haunted” 1938 Tudor mansion, guests are required to complete a waiver in order to enter. Once inside, visitors follow black-clad guides through 30 rooms to see paranormal investigator Bagans’s collection, including the dybbuk box, a wine cabinet reputed to be among the most haunted objects in the world. Next up on the Las Vegas museum tour is The Mob Museum. Located in a former courthouse built in 1933, all
The Spy Museum in Washington explores the fascinating world of espionage, “uncovering” secret technology and tools used by real-world spies.
There are many museums that hold contents guaranteed to keep you thrilled and captivated. three stories are packed with criminal history artifacts. Docents clad in fedoras and black suits share stories and welcome tour guests to The Underground, a speakeasy hidden in the basement, for an after-show sample of moonshine distilled onsite. The Luxor hotel and casino, which on its own is worth visiting, is home to the Titanic: The Artifact Exhibition. Guests tour a recreation of the ship’s grand staircase and stroll along the promenade deck in icy-cold temperatures, where they see the view experienced by passengers on the doomed vessel; the more daring can touch a man-made iceberg. A collection of artifacts retrieved from the ship are on display, including luggage, an unopened bottle of champagne, and a large section of the ship’s starboard hull.
The Pinball Hall of Fame in Las Vegas features an astounding array of pinball and arcade games, all in perfect working order to provide hours of fun.
Also in Las Vegas, the Mob Museum is full of exhibits and artifacts from the world of organized crime, as well as a real Speakeasy “hidden” in the basement.
YOU’LL WANT TO bring a lot of quar-
ters when you venture to the Pinball Hall of Fame. Recently relocated from a semi-sketchy neighborhood to Tropicana Avenue, the facility is home to a staggering array of pinball and arcade machines, all in perfect working order. Founded in the early 1990s by Tim Arnold, who began it with his collection of 1,000 machines, the vast array of machines now in place provide a lively soundtrack as guests plug in quarters to rack up new personal best scores. Washington, D.C., is an ideal road trip destination, due to its incredibly diverse selection of places to visit and things to see. Save some time to explore the Spy Museum, where visitors can test their own code-cracking, surveillance, secret identity, and other spy skills in 17 interactive exhibits. Artifacts on display include a World War II Enigma code machine; a letter
While James Bond and his specially equipped Aston Martin DB4 might not have been real, some of the features of his car were used by actual undercover agents.
I N S I G H T August 5–11, 2022 61
Lifestyle Exploring Offbeat Museums
LIFESTYLE
UNIQUE DESTINATIONS Slow down to be delighted
“Titanic: The Artifact Exhibition” features a full-size replica of the doomed ship’s grand staircase. written by George Washington, America’s first spymaster, to a potential spy; a KGB lipstick gun; a World War I pigeon-mounted spy camera; one of the silver bars given to spy John Walker by the Soviets; and many other fascinating objects actually used by real-world spies. Don’t be surprised if you’re inspired to visit the gift shop to pick up your own spy gear. SOUTH DAKOTA IS a bit off the well-
62 I N S I G H T August 5–11, 2022
Plan the Route Choose the destinations based on how far you’re willing to drive. Make it more interesting by creating a loop that eliminates returning via the same route.
2 Add On to Your Trip Do a search for “museums” and the area you’re traveling to and through. You may be surprised to find interesting sites near your prechosen destinations.
3 Ask a Local
Many museums have interactive displays providing visitors a hands-on experience, as well as self-guided tours that can be enjoyed at your own pace.
Not all museums will show up on an internet search, so ask a local for suggestions. Even if they don’t know of museums, they could direct you to great roadside restaurants or shops.
THIS PAGE: COURTSEY OF TITANIC THE ARTIFACT EXHIBITION, KIT LEONG/SHUTTERSTOCK
worn path, but worth the effort to see Mount Rushmore, or to visit Custer State Park, or Sturgis, home of an annual, epic rally for motorcycle riders from around the world. But just outside Sioux Falls is an open-air collection of handcrafted sculptures set on 18 acres of open prairie. A 60-foot-tall bull’s head greets visitors as they approach Porter Sculpture Park, recognized as one of America’s top roadside attractions. Entirely self-guided, Porter has more than 50 large-scale sculptures on display. Kids and dogs are welcome, with all the art accessible for photos; visitors are encouraged to touch and even climb on the artwork. Top off the gas tank and pack your passport and wetsuit for this museum on Mexico’s Caribbean coastline. Cancún’s Underwater Museum of
Art, founded in 1980, is located about 30 feet below the surface. Its 500 sculptures are seen by approximately 200,000 visitors annually. Ferries run to and from the park waters every half hour, making it easy to get to the site. The sculptures, crafted of marine concrete, are anchored to the sea floor where they’ve become part of the ecosystem and home to many fish and crustaceans. One exception to the concrete construction is a submerged Volkswagen Bug—now covered in aquatic vegetation—located near Manchones reef. Because the majority of the sculptures are in relatively shallow water, they can be seen by snorkelers, but scuba gear provides the best experience.
1
Luxury Living Snow Ski Gear
HIGH-TECH GEAR FOR THE SLOPES
It’s not too soon to start planning your ski adventures, so we’ve assembled several readyfor-the-slopes equipment suggestions By Bill Lindsey
Protect Yourself
Ski Time
BOLLÉ RYFT MIPS
GARMIN FENIX 7 SAPPHIRE SOLAR EDITION
$300
While many learned to ski without a helmet, sudden impacts with trees or other skiers on crowded runs make them a necessity. The Active Panel Ventilation system and fully customizable fit ensure all-day comfort while the MultiDirectional Impact Protection System safety system provides serious protection for your brain.
$899.99
This watch goes far beyond telling time. It has maps of ski runs at more than 2,000 resorts, and it monitors your overall health to let you know when to take a break. It can also provide your location on the mountain and send an alert when it detects you need assistance.
Stay Warm and Dry
KJUS 7SPHERE HYDRO-BOT SKI JACKET
COURTESY OF NORDICTRACK, GARMIN, WITHINGS, SHOKZ, ROKA
$1,699
Layering is a great way to stay warm, but if you overdo it, you might end up sweaty and clammy. This wearable technology keeps you dry by using reverse osmosis to wick moisture away from your body and to the exterior of the jacket. The remote control allows you to adjust the system as needed for all-day comfort.
Don’t Freeze Your Phone
PHOOZY APOLLO THERMAL PHONE CASE $29.99
When exposed to cold temperatures, phone batteries can drain quickly, even if tucked into a ski jacket. Snow can damage phones, too, which is why this case is a ski trip must-have to protect against extreme cold and moisture, and to keep your music and all other apps going strong.
An Onboard Ski Coach
CARV DIGITAL SKI COACH
$199 FOR SYSTEM, PLUS VARIOUS ANNUAL PASSES (SEE WEBSITE FOR DETAILS)
Taking lessons helps to improve your slope skills, but imagine if the coach were talking to you when you get out on the snow, providing feedback as you make your way down the run. This system does that, using sensors in your boot to provide real-time verbal guidance via headphones or earbuds. I N S I G H T August 5–11, 2022 63
Epoch Booklist RECOMMENDED READING FICTION
‘Bleachers’
By John Grisham
Revisiting the Glory Days This is a different book than what we might expect from the lawdrama king. Grisham takes readers on a walk down memory lane to a former high school football team gathered to bury the football coach who deeply impacted them. This book is a tribute to high school football. DOUBLEDAY, 2003, 163 PAGES
‘The Complete Richard Hannay Stories’
By John Buchan
The Grandfather of Spy Thrillers In these five novels of adventure and suspense, British secret agent Richard Hannay takes center stage. Some readers may be familiar with “The Thirty-Nine Steps,” in part because of the Alfred Hitchcock film. But here are other stories that lend depth to Han-
This week, we look at a lively overview of England’s formative years and their impact, and a biography of an American frontiersman and peacemaker.
nay and launch readers into a world of fast-paced suspense not unlike our own. In “Greenmantle,” for instance, the spy works to thwart a jihad plot in the East. Critic Roger Kimball describes reading Buchan as “a tonic exercise.” This book is for teens as well as adults. WORDSWORTH EDITIONS, 2010, 992 PAGES
HISTORY
‘London and the 17th Century’
By Margarette Lincoln
London During Its Rise to Greatness Lincoln examines London’s formative years: between Queen Elizabeth I’s death and King William III’s reign. It was a consequential period. London’s population was 200,000 in 1600, nearly tripling to 570,000 by 1700. We read about the Gunpowder Plot, the English Civil War, the Great Plague and Great Fire, the Restoration, the Dutch Wars, and the Glorious Revolution of 1688. Entertaining and informative, it leaves readers appreciating 17th-century London’s contributions made to today’s world. YALE UNIVERSITY PRESS, 2021, 384 PAGES
64 I N S I G H T August 5–11, 2022
Are there books you’d recommend? We’d love to hear from you. Let us know at features@epochtimes.com
SPACE TRAVEL
‘Abandoned in Place’
By Roland Miller
SpaceExploration Through Photos Miller has created a thoughtful photo essay of U.S. space-flight heritage. Intrigued by the space race since childhood, he began photographing abandoned launch facilities decades ago. The images reveal some of space exploration’s most historic sites following closure. Between the photographs of secure military or NASA facilities, most no longer existing, are essays by space-travel notables, including three Ray Bradbury poems. UNIVERSITY OF NEW MEXICO PRESS, 2016, 176 PAGES
BIOGRAPHY
‘The Intermediary’
By Lin Tull Cannell
More Than a Mountain Man William Craig was young when he fled Virginia and headed West in the early 1800s. He wore
many hats: fur trapper, trader, interpreter, farmer, husband, father, guide, and explorer. Most significantly, he served as the official liaison between the Nez Perce and the wave of newcomers to Native American lands. This is his story.
FOR KIDS
‘Wings for Per’
RIDENBAUGH PRESS, 2010, 244 PAGES
By Ingri and Edgar d’Aulaire
CLASSICS
A Norwegian World War II Pilot
‘Common Sense 101’
By Dale Ahlquist
Lessons From G.K. Chesterton Is this book a classic? No. Are some of Chesterton’s better-known works—“Orthodoxy,” for instance, or the Father Brown stories—classics? Possibly. Are his aphorisms? Absolutely. Chesterton remains one of the most quoted authors of our age. “If a thing is worth doing, it is worth doing badly” is only one of his many adages that regularly see print. Here Ahlquist, a leading Chesterton scholar of our day, provides an excellent introduction to the classic wit, goodness, and wisdom of this man who “wrote about everything.” IGNATIUS PRESS, 2006, 316 PAGES
Readers follow the exploits of Ingri d’Aulaire’s nephew, a Norwegian boy who wants to fly, makes his way to the United States, and returns to Europe as a pilot to fight the Nazis. This book includes vivid illustrations and historical background and is for those aged 8 to 12. BEAUTIFUL FEET BOOKS, 2018, 60 PAGES
‘Farm Anatomy’
By Julia Rothman
A Study Through Illustration Julia Rothman invites readers to delight in the varied facets of farm life through her drawings, diagrams, recipes, and instructions. The first of her engaging and informative “Anatomy” series is worth discovering in its entirety. STOREY PUBLISHING, 2011, 224 PAGES
Ian Kane is a U.S. Army veteran, filmmaker, and author. He enjoys the great outdoors and volunteering.
MOVIE REVIEWS
Epoch Watchlist
This week, we look at an ’80s classic about a friendly alien, and a hilarious, offbeat comedy about an aging stuntman and his younger rival.
NEW RELEASE
FAMILY PICK
‘E.T.’ (1982)
‘DC League of Super-Pets (2022) When Superman and the rest of the Justice League are kidnapped, Krypto the Super-Dog and his motley crew of fellow super-pets harness their collective superpowers in order to stage a big rescue. This movie sports some pretty good animation and is action-packed from beginning to end. However, the comedic bits are largely hit-ormiss, depending on whether you’re a fan of crude humor. But overall, the film’s heartfelt nature overshadows most of its shortcomings. In the end, it’s a fun movie but nothing groundbreaking.
ANIMATION | ACTION | ADVENTURE
Release Date: July 29, 2022 Directors: Jared Stern, Sam Levine Starring: Dwayne Johnson (voice), Kevin Hart (voice), Kate McKinnon (voice) Running Time: 1 hour, 46 minutes MPAA Rating: PG Where to Watch: Theaters
ONE OF THE GREATEST WESTERNS OF ALL TIME It’s a masterclass in filmmaking and has inspired many creative minds including David Lean and Martin Scorsese. ADVENTURE | DRAMA | WESTERN
‘The Searchers’ (1956)
John Wayne stars as Ethan Edwards, a Civil War veteran who spends years looking for his niece, Debbie Edwards
(Natalie Wood), who was kidnapped by Comanches. His journey is fraught with peril. This feature is considered one of the most influential films of all time.
Release Date: May 26, 1956 Director: John Ford Starring: John Wayne, Jeffrey Hunter, Vera Miles Running Time: 1 hours, 59 minutes Not Rated Where to Watch: DirecTV, Redbox, Vudu
After young Elliott (Henry Thomas) discovers a kindhearted alien that was left behind on Earth, he takes it home. Although he introduces E.T. (nicknamed for extraterrestrial) to his sister and brother, Elliot otherwise keeps its existence secret. But when E.T. becomes sick, the government may have to intervene. Director Steven Spielberg’s classic sci-fi tale of an alien stranded on Earth is blissful movie magic. Parents will love the
nostalgia, and kids will love the adorable E.T. and its friendship with its earthling family. ADVENTURE | FAMILY | SCI-FI
Release Date: June 11, 1982 Directors: Steven Spielberg Starring: Henry Thomas, Drew Barrymore, Peter Coyote Running Time: 1 hour, 55 minutes MPAA Rating: PG Where to Watch: Vudu, Redbox, DirecTV
A PERFECT, WHACKY SUMMER COMEDY
‘Hooper’ (1978) Sonny Hooper (Burt Reynolds) has been Hollywood’s top stuntman for ages but is getting on in years. He gets the chance to prove he still has what it takes when a brash director (Robert Klein) gives him the opportunity to perform his greatest stunt ever. But at what cost? Not only is Reynolds hilarious and at the top of his game in this raucous laugh-fest, but Jan-Michael Vincent is brilliant as the young rival, an
upstart stuntman, Ski Shidski. This is the perfect summer comedy for lifting spirits. ACTION | COMEDY
Release Date: July 28, 1978 Director: Hal Needham Starring: Burt Reynolds, Jan-Michael Vincent, Sally Field Running Time: 1 hour, 39 minutes MPAA Rating: PG Where to Watch: Redbox, HBO Max, Vudu
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TEQUILAS TO SAVOR:
Carefully Crafted Spirits Meant to Be Sipped Straight By Kevin Revolinski
Asombroso El Platino Blanco Triple Distilled Awarded double gold and designated Top Tequila in the World Spirits Competition in San Francisco, this is another blanco. The aroma delivers herbal, peppery, and anise notes, but on the tongue, it has a vanilla sweetness and rounded mouthfeel with a smooth, mellow finish that lingers nicely. $54.95 AT ASOMBROSOTEQUILA.COM
GREAT TEQUILA IS FINE IN A MARGARITA, but the finest ones are of such quality and flavor that they deserve to be sipped and savored as one would scotch or cognac. As with whiskey, if you want to get the full flavor, drink these at room temperature, but, by all means, have them chilled if you prefer. Either way, you won’t need to slice limes or rim glasses with salt.
Inspiro Luna Blanco Company founder Mara Smith collaborated with legendary master distiller Ana María Romero Mena to bring this highly approachable brand to market, and their first expression rests in oak barrels for “a lunar quarter” (7.4 days). Expect an aroma of vanilla and cooked agave, with tasting notes of mild vanilla, cooked agave, citrus, mint, and berries. $52.99 AT INSPIROTEQUILA.COM
Tres Agaves Organic Reposado This certified organic tequila spends nine months in Tennessee whiskey and Kentucky bourbon barrels. Floral and oak aromas come through on the nose, while flavors of cooked agave, oak, vanilla, and caramel dominate but leave room for hints of cinnamon, black pepper, and maybe a touch of smoke. A mildly sweet finish. FROM $25.99 AT TRESAGAVES.COM
Tromba Añejo Master distiller and company founder Marco Cedano named his tequila for the cloudburst storms over the agave fields in the Jaliscan highlands of Mexico. The añejo is aged in American white oak whiskey barrels for more than 20 months. Expect green apple, oak, and vanilla notes on first whiff, and the same, plus caramelized agave, on the palate—a very pleasant and approachable tequila. $55.99 AT LIQUORAMA.COM
Kevin Revolinski is an avid traveler, craft beer enthusiast, and home-cooking fan. He's based in Madison, Wis. 66 I N S I G H T August 5–11, 2022
PHOTOS COURTESY OF RETAILERS
Grand Mayan Reposado Sold in a handsome blue bottle, Grand Mayan’s Reposado ages in American and French oak casks for six to eight months. Expect oak, black pepper, and vanilla on the nose, which come through again on the palate as well, especially the oak. Add to that a firm presence of cooked agave and a hint of caramel and chocolate, with a lingering heat in the finish. $79.99 AT TEQUILAMATCHMAKER.COM
How to Be a Safe,
Considerate Motorcyclist Riding a motorcycle makes you fully responsible for your safety and that of nearby traffic Regardless of whether a motorcycle is your primary means of transportation or just a weekend or vacation plaything, riding it safely requires adhering to the laws of physics and of good manners. By Bill Lindsey
1 Go Back to School
4 Do the Wave
Even if you spent a lot of time riding motorcycles or mopeds in the past, taking a course is a good way to learn new skills and “unlearn” bad habits. Riding this “bike” requires much more attention and very different skills than those used to drive a car. In addition to always wearing a helmet, gloves, and eye protection, be aware a motorcycle goes exactly where you are looking, so keep your eyes on the road.
CSA IMAGES/GETTY IMAGES
2 Stay in Your Lane Some states allow “lane splitting,” which is riding a motorcycle between clearly marked lanes of traffic traveling in the same direction, whether in a traffic jam or among vehicles moving at posted speeds, but it’s a dangerous practice. Drivers may be startled to see a motorcycle alongside and may possibly swerve. When arriving at a red light, don’t scoot past cars to be the first to go when it turns green.
It’s simply good manners to toss a friendly wave at approaching motorcycles. Just as Porsche drivers and boaters do it when they see each other, the wave acknowledges a likeminded individual enjoying the day, making you both feel like members of a fun club. A “proper wave” is done by simply fully opening the clutch hand and extending it at a slight angle. If your wave makes you look like Forrest Gump, you’re doing it wrong.
3 You’re Not Ponch Unless you are a California Highway Patrol motorcycle cop, don’t ride side by side because it limits reaction time if the adjacent rider suddenly swerves to miss a pothole. When entering a road from a parking lot, wait for a sizable gap in traffic instead of suddenly zipping in front of unsuspecting vehicles. Even if your motorcycle is fast enough to merge, it’s an unwelcome surprise to the drivers you just cut off.
5 Be Helpful If you see a motorcyclist on the side of the road, pull over to see if they need a helping hand. They may be out of gas or need directions to their destination. Even if they don’t require assistance, it’s a nice way to connect with another person in a way not readily available to car and truck drivers. Like the old commercial said, “You meet the nicest people on a Honda.”
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