Abbott’s war on migration has led to another tragedy in Texas

CNN – Opinion

Opinion: Abbott’s war on migration has led to another tragedy in Texas

Opinion by Alice Driver – January 16, 2024

Editor’s Note: Alice Driver is a writer who divides her time between Mexico and the US. Her latest book is “The Life and Death of the American Worker: The Immigrants Taking on America’s Largest Meatpacking Company.” Her writing has appeared in The New Yorker, The New York Review of Books and Oxford American. The views expressed in this commentary are her own. Read more opinion at CNN.

On Friday, a woman and her two young children struggled to cross the Rio Grande’s unpredictable waters to get from Mexico to Eagle Pass, Texas. US Border Patrol agents tried to enter Shelby Park, which runs along the US side of the Rio Grande, to save the woman and her children. The agents reportedly reached out to Texas state officials about the emergency by phone but received no response.

Alice Driver - Luis_Garvan
Alice Driver – Luis_Garvan

Democratic US Rep. Henry Cuellar said in a statement late Saturday that US Border Patrol agents went to the park and asked to be allowed to render aid to the migrants, whom he identified as a mother and her two young children according to Mexican sources, but were denied entry.

“Texas Military Department soldiers stated they would not grant (the Border Patrol) access to the migrants — even in the event of an emergency,” Cuellar said, adding that Mexican officials recovered three bodies on Saturday.

Texas officials deny mishandling the crisis. “TMD (Texas Military Department) was contacted by Border Patrol at approximately 9:00 pm on Friday in reference to a migrant distress situation. TMD had a unit in the vicinity of the boat ramp and actively searched the river with lights and night vision goggles. No migrants were observed,” the agency said in a statement to a local ABC affiliate.

But Joaquin Castro, a Democratic congressman from Texas, suggested Gov. Greg Abbott bears direct responsibility for the tragedy. “Texas officials blocked US Border Patrol agents from doing their job and allowed two children to drown in the Rio Grande,” Castro said, an account confirmed by the Department of Homeland Security. “Governor Abbott’s inhumanity has no limit. Everyone who enables his cruelty has blood on their hands.”

To know that a young family is struggling to navigate cold, swift waters and to do nothing to prevent their deaths is cruel and evil.

But for Abbott it is more of the same: His policies take an unduly harsh line on immigration, even if it means putting the lives of innocent people at risk. The state of Texas should be held responsible for these deaths.

I’ve been an immigration writer for years, including at the Eagle Pass crossing, and I’ve seen heartless policies against people trying to enter the United States. Abbott’s are among the worst I’ve covered.

I’ve interviewed countless migrants very much like the woman who perished this weekend. If this mother and her two children had been saved, they might be applying for asylum and imagining a future together far from the harm and privation they likely experienced in their home country.

As The Atlantic explained in recent reporting, the mother and her children would face a backlog of asylum cases that grew to 1,009,625 in 2023, and they would wait an average of four years to get a hearing. Had they survived, I might be interviewing them today, as I have solicited the personal stories of hundreds of migrants along the US-Mexico border over the past decade.

The two children might be taking photos with the Polaroid camera that I carry around, and writing messages with the rainbow-colored markers I also keep at hand.

“What do you want me to write?” children often ask me, wide-eyed, when I tell them they can write or draw anything they want on their photos. They sometimes share messages like “I hope God grants me asylum” or “I hope I don’t get separated from my mom.” There is so much to learn from the stories of people fleeing war, famine, drought and the effects of climate change.

These are lessons, however, that appear to have been lost on Abbott. During his time in office, he has been on a warpath to criminalize and dehumanize migrants, spending more than $4.5 billion on Operation Lone Star since 2021, his ramped up effort to prevent border crossings, including by deploying floating razor wire barricades in the Rio Grande. And he has spent more than $100 million to send asylum seekers legally in the US to Democratic-run cities, usually without notice and without providing sufficient — if any — food or warm clothing for the journey.

Abbott’s policies seem not too dissimilar to the family separation initiative put into place by former President Donald Trump in that inflicting cruelty, pain and trauma appear to be tools to deter migration. Nevertheless, Operation Lone Star — like Trump’s family separation policies — appears to have had little effect on stemming migration. It would appear that the misery migrants have been fleeing for years is worse than even the cruel anti-immigration program that Abbott has devised.

On December 18, he signed into law SB 4, a measure that attempts to wrest the power the Constitution gives the federal government over immigration and put it in state hands. SB 4 made entering Texas illegally a state crime. Abbott’s efforts to criminalize migration have included stringingconcertina wire and erecting anti-climb barriers along the border and installing an $850,000 floating barrier made of buoys separated by saw blades along the Rio Grande in Eagle Pass.

The Fifth Circuit Court ordered Texas to remove the floating barrier last year. In a recent radio interview, Abbott said — shockingly — of his policies: “The only thing that we are not doing is we’re not shooting people who come across the border — because, of course, the Biden administration would charge us with murder.”

Abbott has made Eagle Pass a focus of his immigration enforcement policies. But he has done so without the support of local authorities. Mayor Rolando Salinas questioned why Abbott closed Shelby Park, which is public, without his permission. “That is not a decision that we agreed to,” Salinas said. “This is not something that we wanted. This is not something that we asked for as a city.”

The confrontation between the US Border Patrol and the Texas National Guard troops and Texas Military Department represents a looming power struggle between Abbott and the Biden administration — one in which federal officials must assert their authority.

Abbott’s policies prevented the federal government from exercising its constitutional power to save a mother and her two children. Luis Miranda, a DHS spokesperson, said, “The Texas governor’s policies are cruel, dangerous and inhumane, and Texas’s blatant disregard for federal authority over immigration poses grave risks.”

Even before the tragic deaths at Eagle Pass, the Biden administration appealed to the US Supreme Court about Texas blocking access to the border. Abbott’s power struggle with the Biden administration sets a dangerous precedent, one that shows wanton disregard for the lives of migrants.

By now, it should be clear to Abbott that ratcheting up cruelty is not a way to stem migration. Instead of militarizing the border, Texas and the federal government should instead invest in humane asylum policies that don’t heap tragedy upon people arriving to this country who have already experienced so much hardship and loss.

The US is starting 2024 in its second-largest COVID surge ever, experts say

Today

The US is starting 2024 in its second-largest COVID surge ever, experts say

Maura Hohman – January 15, 2024

The United States is in the middle of a wintertime COVID wave, driven by holiday gatherings, people spending more time inside, waning immunity from low uptake of the new COVID vaccine and a new highly infectious COVID variant, JN.1.

The U.S. Centers of Disease Control and Prevention released an update on Jan. 5 about the prevalence of JN.1, explaining that the new variant may be “intensifying the spread of COVID-19 this winter.” Test positivity and wastewater data show that viral activity in the U.S. is higher than this time last year, with wastewater data especially rising rapidly the past several weeks. (COVID-19 deaths and hospitalizations are still lower than last year, the CDC noted.)

Cases are high globally, too, an official with the World Health Organization said during a Jan. 12 media briefing. Maria Van Kerkhove, Ph.D., WHO’s COVID-19 technical lead, estimated that viral levels are two to 19 times higher than what’s being reported around the world.

According to some experts and data models, the current surge in the U.S. is its second-largest since the pandemic began — after only the omicron surge from late 2021 to early 2022, which infected more people than even the early days of the pandemic.

According to Lucky Tran, Ph.D., science communicator at Columbia University Irving Medical Center, projections show as many as 1 in 3 people in the U.S. could be infected with COVID during the peak months of the current wave and up to 2 million people could be infected in a single day — data he attributed to Michael Hoerger, Ph.D., assistant professor at Tulane University School of Medicine who leads the Pandemic Mitigation Collaborative’s data tracker.

Line graph of the 8 U.S. COVID waves. First 7 peaks labeled "pandemic was raging." Current surge labeled "pandemic is raging."

Subtweet.

Tran tells TODAY.com that “many people underestimate just how much virus is around.” But research shows that once people are aware of the real levels, “they (are) more willing to wear a mask, social distance when required, to stay home and get vaccinated and take all of those measures,” he adds.

Is the U.S. in a COVID wave in 2024?

Yes, the U.S. is in the middle of a COVID wave, multiple experts tell TODAY.com.

A CDC chart of national and regional COVID trends in wastewater shows the national viral activity rate of 12.44 from the week ending Dec. 30, 2023 is higher than anything seen since January 2022, as far back as the publicly available CDC data goes. (The national rate for the week ending Jan. 15, 2022, was 22.78.) However, the rate dipped for the week ending Jan. 6, 2023, to 11.79.

CDC spokesperson Tom Skinner tells TODAY.com via email that “COVID 19 in wastewater is currently (at) very high levels across the country.”

“Last year, the peak of infections occurred in late December, early January. We are seeing early evidence of the same timing this year, but we will continue to monitor closely,” Skinner continues.

“These levels are much lower than the Omicron wave in early 2022,” he says, adding that JN.1 is the most frequently detected variant in wastewater. Skinner did not specify if the current COVID wave is the country’s second-largest.

The CDC noted in its Jan. 5 statement that wastewater and test positivity data are both higher than the year before by about 27% and 17% respectively. It added that wastewater levels “are currently high and increasing in all regions.”

Hoerger tells TODAY.com that based on the wastewater data collected from Biobot Analytics (which used to provide the CDC its wastewater data), the U.S. is in its second-largest COVID surge. He says his own predictive model indicates cases will continue to rise until mid-February. He estimates that mid-December 2023 to mid-February 2024 will be the peak of the current wave and that 1 in 3 Americans will be infected with COVID during this timeframe.

He says his data also show that on the highest day of the current wave, there will be 2 million new COVID cases, which would lend to many more infections than last winter, which had its highest day of about 1.7 million new infections. While CDC data suggest viral activity levels have been similar the last two Decembers, Hoerger explains that the acceleration in COVID activity in 2023 was faster than in 2022, suggesting there will be a higher peak this season.

“I think people can get a little bit too concerned about the height of the peak,” Hoerger says. “What’s really troubling is just the total number of days with a really high transmission based on my model or if you’re just looking at the wastewater.”

Dr. Albert Ko, infectious disease physician and professor of public health, epidemiology and medicine at Yale School of Public Health, agrees that focusing on peaks isn’t as helpful as stressing that COVID is spreading widely in much of the country right now.

“More important than saying this is more than the last wave or two waves or three waves ago … is that we are getting into surge, and the public should be aware about how to protect themselves,” Ko tells TODAY.com.

A surge this time of year is expected, Dr. William Schaffner, infectious disease specialist at Vanderbilt University Medical Center, tells TODAY.com, and it’s “perfectly reasonable” to call the current COVID wave the country’s second-largest, he says.

“But I don’t want to panic people,” he explains. “This winter increase is not going to be akin to the previous winter increases, which really stressed hospitals,” though it is likely to keep medical professionals “very busy,” he adds.

Tran stresses that it’s important to understand the burden of COVID beyond hospitalizations and deaths being lower than they were earlier in the pandemic.

“While we’re not seeing the same levels of hospitalizations or deaths as 2020 or 2021, it’s still a very high baseline compared with before the pandemic, and that’s something that we should still care about,” Tran says. He adds that more virus circulating can also lead to increases in long COVID and chronic illness, more people (especially health care workers) missing work and other important events, and immunocompromised people not being able to access essential services, like health care.

COVID-19 mask mandates

Amid a rise in COVID cases, as well as influenza and respiratory syncytial virus (RSV), masks mandates have returned in medical settings in several states, Reuters reported:

  • New York
  • Illinois
  • Massachusetts
  • California

But even if you’re not required to mask, the experts say that now is a good time to wear your N95 or KN95.

“Get your mask out again if you’re going indoors, even to the supermarket,” Schaffner says. “Certainly if you’re traveling, going to religious services, going to that basketball game, where everybody’s close together and cheering, those are environments where the virus can spread.”

If you have some respiratory illness symptoms but not enough to stay home, wear a mask when around other, the experts say. And keep in mind that the CDC recommends wearing a mask for 10 days if you test positive for COVID. You are most contagious the day before your symptoms start and for three to five days afterward.

How bad is the new COVID variant?

The new COVID variant JN.1 is responsible for more than 61% of cases in the U.S. as of the week ending Jan. 6, 2024, according to CDC data. The variant may be more transmissible or better at evading immune protection than previous COVID variants, TODAY.com previously reported.

It also appears to be “intensifying” the spread of COVID this winter, the CDC said in a statement.

“The current strain right now seems to be packing a meaner punch than the prior strains,” Dr. Joseph Khabbaza, a pulmonary and critical care specialist at the Cleveland Clinic, previously told TODAY.com. “Some features of the current circulating strain probably (make it) a little bit more virulent and pathogenic, making people sicker than prior (variants).”

JN.1 COVID variant symptoms

The symptoms you’ll experience if infected by the latest COVID variant, JN.1, will depend on your underlying health and immunity. But generally speaking JN.1 symptoms are similar to those caused by other variants, such as HV.1 and BA.2.86, aka “Pirola.”

According to the CDC, these are:

  • Sore throat
  • Congestion
  • Runny nose
  • Cough
  • Fatigue
  • Headache
  • Muscle aches
  • Fever or chills
  • Loss of sense of taste or smell
  • Nausea or vomiting
  • Diarrhea
How to protect yourself in a COVID wave

The experts all agree that the current rate of new COVID cases means it’s time to take precautions to prevent further spread. This is especially important for individuals who are at high risk for severe illness, such as the elderly and immunocompromised.

But even if you or loved ones don’t fall into this category, by taking precautions, you can prevent spreading the virus to someone who may get much sicker than you and reduce your risk of long COVID.

So, the experts urge:

  • Wearing a mask in indoor settings with lots of people
  • Considering avoiding crowded settings, especially if you’re high risk
  • Staying home if you’re sick
  • COVID testing
  • Getting the new COVID vaccine, approved for everyone ages 6 months and older since September 2023
  • Seek out antivirals if you test positive for COVID, especially if you’re high risk

It’s tempting to think the pandemic is over, but Hoerger stresses that data show it isn’t. In fact, Van Kerkhove recently posted on X that we’re heading into the fifth year of the pandemic.

“The bottom line,” Ko says, “is everybody should consider themselves under risk of getting COVID.”

The ‘old American Dream died,’ Realtor details salary needed to buy a home, afford a middle class life in 2024

Fox Business

The ‘old American Dream died,’ Realtor details salary needed to buy a home, afford a middle class life in 2024

Kira Mautone – January 15, 2024

Americans now need to make $120K a year to afford a typical middle-class life and qualify to purchase a home, one expert discusses.

“I think most of us in America would define the middle class as somebody who can work a 40-hour-a-week career and can have the income to purchase the average home in America,” Freddie Smith, an Orlando realtor and TikTok creator, told Fox News Digital.

The TikToker, whose videos explore millennial and Gen Z struggles to afford a home and the general cost of living in today’s economic climate, dissected the common factors of living a middle-class existence.

“A lot of us grew up middle class, and we watched what middle class was in the 80s and 90s as millennials. And nowadays, what has moved the goalpost more than anything is the housing market,” the relator said.

Home in Summerville
Home in Summerville listed for $765,000.

Smith explained how, just a few years ago, $60-$70K a year would have been sufficient to qualify for a home.

With the average cost of a house being around $400K-$420K in 2024, people’s salaries would need to be around $120K a year for people to even qualify, Smith explained.

The realtor highlights how this wage-to-housing gap has forced many people to rent for a longer period.

“Rent prices are taking up 30-40% of people’s income, making it harder for them to save for a house. So it’s this perpetual cycle that is keeping people out of the middle class,” he explains, noting this trend has been continuing at a rapid pace over the last few years.

Smith also explained how a $120K salary, even without children, becomes a far lower number when confronted with the crippling debt most Americans are facing today.

“Most people are carrying student loan debt, which is at an all-time high, and the average payment in the country is $500 a month for your college degree. [There are] some people I’m seeing in my comment section saying ‘$500, I wish, it was $1,200 a month for me’,” said Smith.

Credit card debt is also at a record high in America, and while Smith acknowledges that reckless spending could be a factor, he has learned from many Americans commenting on his posts that many are forced to use their cards for groceries because they ran out of money.

According to DQYDJ, the average American income in 2023 was roughly $69K a year, with only 18.8% percent of Americans reaching $100K or more a year. According to the same source, the top 10 percent of individual earnings started at $135,605 a year.

The middle class is in a segmented state, Smith argues, largely determined by how much debt one finds themselves in.

“If you are someone who bought a house before 2020 and you have it paid off or you have a 3% interest rate, you are not burdened by the housing costs like the 2024 adults are now,” the relator said, explaining how debt, especially college debt, housing costs and childcare are burdening millennials and Gen Zers starting their lives.

home with sold sign in front
A sign outside a home for sale in Atlanta, Georgia, on Wednesday, Sept. 6, 2023. Home prices in the US climbed for a fifth month as buyers competed for deals in the least affordable market in decades.

“People are spending about $1,200 to $1,500 a month on daycare, and I’ve even heard it as much as $3,000-$4,000. So when you add in somebody who’s renting for $2,500, $2,000 for daycare, $1,000 for two college loans, just that alone, you need $100,000 as an income just for that,” said Smith.

For slightly older individuals who had a chance to pay off their debt and have grown-up children, $70K remains a comfortable middle-class wage to them.

“‘These millennials are whining. These Gen Zers just work harder.’ If you bought your house before and don’t have those other payments, that’s really the three-layered cake. Housing, college [debt] and daycare” explained Smith, highlighting these three factors greatly determine your middle-class placement.

As a result of high housing costs, many young people are choosing to stay at home with their families to save funds. Smith explains how he is seeing communal living go even further in Florida, where separate families are choosing to live under one roof.

“Many families [with] 3 or 4 adults and [say] five children, they all split a big house, and they all take care of each other. You can see that they have a lot of toys and they’re pooling their money,” Smith detailed.

A house is for sale in Arlington, Virginia
A house is for sale in Arlington, Virginia, July 13, 2023.

The TikToker enumerates how millennials and older Gen Zers had a “difficult” hand dealt to them. Younger Gen Zers, however, have a lot of “opportunity” to “crush in today’s economy” if they plan carefully to avoid debt and make smart financial choices.

“The millennials, they’re the pinched generation where college essentially stopped working for most. The debt piled up, and the old American dream died, and we got left holding the bag,” he said.

The creator said that through posting on TikTok, he has learned a tremendous amount about the everyday struggles real Americans are facing through his comment section.

“People in America, real society, are sharing all this with me. And I’m learning at a rapid pace from all different individuals. It’s not just googling it, or asking 100 college students what they think. It’s thousands and thousands of people sharing what’s going on,” said Smith.

The realtor discussed how there is a “bigger conversation” around an evolving American Dream that we’re likely to see take place over the next few years.

“We’re basically redefining the American dream from top to bottom, like the way that we see work and work-life balance,” said the creator, explaining how the idea of owning a home might grow old alongside past generations.

“I don’t even know if millennials and Gen Zers want to follow that path of buying a house and living in it for 40 years and staying at the same job for 40 years. I don’t think creatively, work-life balance wise, is also what our long-term play is,” he said.

“We are on the brink of an autocratic government, someone who is blatantly saying, If I’m president again, I’m going to be a dictator:” Green Day’s Billie Joe Armstrong fears for America’s future

Louder

“We are on the brink of an autocratic government, someone who is blatantly saying, If I’m president again, I’m going to be a dictator:” Green Day’s Billie Joe Armstrong fears for America’s future

Paul Brannigan – January 15, 2024

 Billie Joe Armstrong.
Billie Joe Armstrong.

Green Day‘s Billie Joe Armstrong has spoken about his fears for the direction American politics is taking, and warns that the prospect of an autocratic government in the US is “at our doorstep”.

Armstrong’s band will release their 14th studio album ‘SAVIORS’ on Friday, June 19, and, in a new interview with Vulture, the 51-year-old vocalist/guitarist talks about how the album’s first single, The American Dream Is Killing Me, released back in October last year, deals with the “overwhelming” anxieties that come with being “an over-stressed American”.

“Our politics are so divided and polarized right now,” says Armstrong. “We had an insurrection. We have homeless people in the street. We have so many issues, and they come onto your algorithm feed at such a pace. It just stresses you out, the anxiety of being an American and how it becomes so overwhelming.”

Reflecting on how his band’s new record shares some of the DNA of 2004’s American Idiot album, Armstrong notes, “I think it was easier to satirize George Bush because we didn’t have social media. It was before all the tech bros came in. Now you have these billionaires who would rather shoot a rocket into space than deal with the infrastructure we have here.”

Looking ahead, Armstrong admits that he is concerned by the current political landscape in America.

“We are on the brink of an autocratic government, or someone who is blatantly saying ‘If I’m president again, I’m going to be a dictator’,” he says. “What’s that Maya Angelou quote? When people tell you who they are, believe them. [Actually, ‘When someone shows you who they are, believe them the first time’] It’s this exaggeration that became what can actually happen. It’s based on a cult of personality. America is not supposed to be about the cult of personality; we’re supposed to be about a group of people who are making laws that would make the American people’s lives easier and affordable. Getting good jobs, getting good health care, protecting people from corporations taking advantage of them. I feel like we are completely lost on that, the real American ideal.

Russia receiving military-linked goods from Finnish companies

Kyiv Independent

Media: Russia receiving military-linked goods from Finnish companies

Dinara Khalilova – January 15, 2024

Over 20 Finnish companies managed or owned by Russians have been exporting high technology and other goods that can be used in the military industry to Russia, according to an investigation by Finland’s public broadcaster YLE Published on January 15th.

The investigation revealed that at least nine customers of the Finnish companies have direct links to the Russian military sector and intelligence agencies such as Russia’s Federal Security Service (FSB).

These are small logistics firms operating mostly in southeastern Finland, near major logistics hubs, YLE wrote. At least four of them are already subjects of criminal investigations.

A Russian-linked company operating in Lappeenranta has sent to Russia “numerous packages” with sensors, diesel engines, fuel pumps, and transmission equipment, which experts have classified as critical supplies in warfare, according to the investigation.

According to Russian public procurement data, two of the firm’s clients have ties to the FSB, with one of the clients posting a letter on their website thanking the FSB for good cooperation.

Read also: Most of 2,500 foreign components Ukraine found in Russian weapons come from US (GRAPHS)

Similar components were reportedly found in destroyed Russian weapons and vehicles in Ukraine, but not all of them were subjected to Western sanctions, which has made it easier to export them to Russia.

Other products exported to Russia by the Finnish companies include equipment for military research, product development, and intelligence activities, as well as engine parts and electronics, the media outlet wrote.

It is not clear, though, whether the Russian military has specifically used the goods exported from the Finnish companies covered in the investigation.

According to YLE, some goods were exported from Finland to Russia through Uzbekistan, which Russia has reportedly used to evade Western sanctions.

Following the outbreak of the full-scale war against Ukraine, Western countries imposed extensive sanctions against Russia, banning imports of electronics and other goods critical for the production of high-tech weapons like missiles or drones.

In spite of these restrictions, Moscow continues to acquire dual-use goods via third-party countries like Uzbekistan, Kazakhstan, Turkey, or China.

Toy manufacturers’ shift from China is no child’s play

Reuters

Toy manufacturers’ shift from China is no child’s play

Richa Naidu – January 15, 2024

An undated handout photo of the Aequs toy manufacturing facility in Belgaum
An undated handout photo of the Aequs toy manufacturing facility in Belgaum
An undated handout photo of workers at the Aequs toy manufacturing facility in Belgaum

LONDON (Reuters) – Toy makers grappling with surging costs in China are finding no easy options when it comes to shifting production to cheaper centres elsewhere.

Six years ago, monopoly maker Hasbro approached Indian durable goods and aerospace supplier Aequs to sub-contract.

“They said if you can get into toy manufacturing, now we’re looking to shift millions of dollars worth of product from China to India,” Rohit Hegde, Aequs’ head of consumer verticals, told Reuters. “We said: as long as we can get at least about $100 million of business in the next few years, we can definitely invest in it.”

Fast forward to today and Aequs makes dozens of types of toys for Hasbro and others including Spin Master in two 350,000-square-foot facilities in Belgaum, India.

But Hegde and other manufacturers acknowledge that India and other countries cannot match China for efficiency, limiting companies’ efforts to shift to lower cost bases and raising the risk of higher toy prices in future if the bulk of production remains in China.

“We don’t have the port facilities (in India) that China does. We don’t have the road facilities that China does. They have been doing this for the last 30 years, their efficiency levels are much better than ours,” Hedge said.

Still, for toy manufacturers including Hasbro and Barbie doll maker Mattel, the risks of relying on China for most of their production were highlighted during the COVID-19 pandemic, when Chinese ports struggled to export goods and were periodically shut down, leaving shipments stranded.

Soaring labour costs in China had already been driving manufacturers across industries to diversify production geographically.

A report by Rhodium Group last September showed that total announced U.S. and European greenfield investment into India shot up by $65 billion or 400% between 2021 and 2022, while investment into China dropped to less than $20 billion in 2022, from a peak of $120 billion in 2018. Mexico, Vietnam and Malaysia also drew some of this redirected capital.

Yet toymakers are struggling to shift production even as other industries succeed.

As of the first seven months of last year, mainland China still made 79% of toys sold in the United States and Europe, versus 82% in 2019, according to U.S. and European Union import data provided to Reuters by S&P Global Market Intelligence’s trade data service Panjiva.

In comparison, mainland China in 2019 accounted for 35% of U.S. and EU apparel imports. This reduced to just 30% in the year to July 31, with India and Mexico the biggest beneficiaries.

“Is it easy to re-shore away from mainland China? No, it isn’t. That goes double for toys,” S&P Global Market Intelligence’s Chris Rogers said. “It’s more complicated because they’re highly seasonal — you’re asking a partner to sit on inventory for most of the year. Toy makers also have to be doubly rigorous on safety, sourcing and making sure workers are treated well.”

While China’s minimum wage varies from between 1,420 yuan per month to 2,690 yuan per month ($198.52-$376.08), in India unskilled and semi-skilled workers can be secured for between 9,000 Indian rupees and 15,000 Indian rupees a month ($108.04- $180.06), according to central bank estimates.

But setting up to source from other countries can take 18 months if a company is buying product from a contract manufacturer, and up to three years if a firm is building a new factory from scratch, Rogers said.

Toys to be sold in the autumn go into production starting in May and are then stored or shipped.

‘MORE REASONABLE COST’

Hasbro began addressing its outsized dependence on China as an operational risk in its annual report in 2018, while Mattel has reportedly been shifting away from China since 2007, when it had to recall millions of toys tainted with lead paint. Efforts across the industry have ramped up since the pandemic.

Hasbro did not respond to a request for comment, while Mattel declined to comment for this story.

Spiralling Chinese wages are helping push up toy prices. In the UK, for instance, prices rose by about 8% in the first six months of 2022, according to Circana, formerly known as NPD. The risk for consumers is that prices will keep on rising sharply if manufacturers can’t cut costs by moving to cheaper production centres.

Though U.S. duties on Chinese toys are currently negligible, that could also change as some Republican politicians have called for revoking China’s “permanent normal trade relations” status. Such a move could raise the price of toys in the United States by more than a fifth, according to the National Retail Federation.

“We are all looking at derisking China,” said Nic Aldridge, managing director at Bandai UK, the maker of Tamagotchi virtual pets. “Raw materials costs have gone up a lot in China, we’re looking for places where we could get a more reasonable cost.”

Bandai still mostly manufactures in mainland China but some of its products are made in Taiwan, Japan, Vietnam. It is looking at India and Thailand as additional locations, Aldridge said.

MGA Entertainment, maker of LOL Surprise and Bratz dolls, has found infrastructure outside China to be a road-block to diversifying sourcing to countries like India and Vietnam, even as its exports from China last holiday season dropped versus the year before.

India accounted for only 1% of U.S. and EU toy imports over the past five years, according to Panjiva’s data.

“The issue in India is really the gridlock of moving even from one state to another. There are so many crazy regulations,” MGA Entertainment CEO Isaac Larian told Reuters.

“(But) the infrastructure is getting better and better as these countries realize the opportunity they have to take business away from China and they are investing,” he said.

(Reporting by Richa Naidu. Additional reporting by Manoj Kumar and Casey Hall; Editing by Susan Fenton)

Pritzker: Confiscation of Russian assets needs collective action

The Kyiv Independent

Pritzker: Confiscation of Russian assets needs collective action

Martin Fornusek – January 15, 2024

The decision to confiscate frozen Russian assets must be taken on a collective level and is unlikely to happen quickly, U.S. Special Representative for Economic Recovery in Ukraine Penny Pritzker said during the World Economic Forum on Jan. 15, Ukrinform reported.

Western countries have frozen over $300 billion in the Russian central bank’s sovereign assets since the start of the full-scale invasion of Ukraine.

Last week, Bloomberg reported that the White House backs legislation that would allow the confiscation of Russia’s funds. Washington reportedly seeks to coordinate such a step with Group of the Seven (G7) members.

“I think there’s enormous hope that the Russian sovereign assets could become an easy source of financing,” Pritzker said at the sidelines of the Davos summit, according to the Radio France Internationale (RFI).

“The whole thing is very complicated. And the first thing you know is a ton of lawyers need to get involved.”

Around two-thirds of the assets are held in European accounts, while only up to $5 billion are frozen at U.S. institutions.

Involved countries have been so far hesitant to outright seize the assets over numerous legal and fiscal pitfalls.

Instead, the EU has been discussing ways of providing Ukraine with a windfall tax on profits generated by the frozen assets. In October, Belgium announced it would create a $1.8 billion fund for Ukraine, financed by the tax revenue from interest on frozen Russian assets.

The World Bank assessed early in 2023 that the total cost of Ukraine’s reconstruction would amount to $411 billion. Ukrainian Foreign Minister Dmytro Kuleba commented earlier this week that the full amount of Russian assets could cover over 80% of recovery costs.

The U.S., with the support of the U.K., Japan, and Canada, are reportedly preparing viable options for confiscating the assets, which should be discussed during a G7 meeting in February.

Read also: Opinion: Seizing Russia’s frozen assets is the right move

Why the World Is Betting Against American Democracy

Politico

Why the World Is Betting Against American Democracy

Nahal Toosi – January 15, 2024

Liesa Johannssen/AP

When I asked the European ambassador to talk to me about America’s deepening partisan divide, I expected a polite brushoff at best. Foreign diplomats are usually loath to discuss domestic U.S. politics.

Instead, the ambassador unloaded for an hour, warning that America’s poisonous politics are hurting its security, its economy, its friends and its standing as a pillar of democracy and global stability.

The U.S. is a “fat buffalo trying to take a nap” as hungry wolves approach, the envoy mused. “I can hear those Champagne bottle corks popping in Moscow — like it’s Christmas every fucking day.”

As voters cast ballots in the Iowa caucuses Monday, many in the United States see this year’s presidential election as a test of American democracy. But, in a series of conversations with a dozen current and former diplomats, I sensed that to many of our friends abroad, the U.S. is already failing that test.

The diplomats are aghast that so many U.S. leaders let their zeal for partisan politics prevent the basic functions of government. It’s a major topic of conversations at their private dinners and gatherings. Many of those I talked to were granted anonymity to be as candid with me as they are with each other.

For example, one former Arab ambassador who was posted in the U.S. during both Republican and Democratic administrations told me American politics have become so unhealthy that he’d turn down a chance to return.

“I don’t know if in the coming years people will be looking at the United States as a model for democracy,” a second Arab diplomat warned.


Many of these conversations wouldn’t have happened a few months ago. There are rules, traditions and pragmatic concerns that discourage foreign diplomats from commenting on the internal politics of another country, even as they closely watch events such as the Iowa caucuses. (One rare exception: some spoke out on America’s astonishing 2016 election.)

But the contours of this year’s presidential campaign, a Congress that can barely choose a House speaker or keep the government open, and, perhaps above all, the U.S. debate on military aid for Ukraine have led some diplomats to drop their inhibitions. And while they were often hesitant to name one party as the bigger culprit, many of the examples they pointed to involved Republican members of Congress.

As they vented their frustrations, I felt as if I was hearing from a group of people wishing they could stage an intervention for a friend hitting rock bottom. Their concerns don’t stem from mere altruism; they’re worried because America’s state of being affects their countries, too.

“When the United States’ voice is not as strong, is not as balanced, is not as fair as it should be, then a problem is created for the world,” said Ronald Sanders, Antigua and Barbuda’s longtime ambassador in Washington.

Donald Trump’s name came up in my conversations, but not as often as you’d think.

Yes, I was told, a Trump win in 2024 would accelerate America’s polarization — but a Trump loss is unlikely to significantly slow or reverse the structural forces leading many of its politicians to treat compromise as a sin. The likelihood of a closely split House and Senate following the 2024 vote adds to the worries.

The diplomats focused much of their alarm on the U.S. debate over military aid to Ukraine — I was taken aback by how even some whose nations had little connection to Russia’s war raised the topic.

In particular, they criticized the decision to connect the issue of Ukrainian aid and Israeli aid to U.S. border security. Not only did the move tangle a foreign policy issue with a largely domestic one, but border security and immigration also are topics about which the partisan fever runs unusually high, making it harder to get a deal. Immigration issues in particular are a problem many U.S. lawmakers have little incentive to actually solve because it robs them of a rallying cry on the campaign trail.

So now, “Ukraine might not get aid, Israel might not get aid, because of pure polarization politics,” said Francisco Santos Calderón, a former Colombian ambassador to the United States.

Diplomats from many European countries are especially unhappy.

They remember how, when Russia launched its full-scale invasion of Ukraine, many Republicans downplayed concerns about the far-right fringe in their party that questioned what was then solid, bipartisan support. Now, as the debate over the aid unfolds, it seems the far-right is calling the shots.

There’s a growing sense among foreign diplomats that moral or national security arguments — about defending a country unjustly invaded, deterring Russia, preventing a bigger war in Europe and safeguarding democracy — don’t work on the American far-right.

Instead, some are stressing to U.S. lawmakers that funds for Ukraine are largely spent inside the United States, creating jobs and helping rebuild America’s defense industrial base (while having the side benefit of degrading the military of a major U.S. foe).

“If this doesn’t make sense to the politicians, then what will?” the European ambassador asked.

A former Eastern European ambassador to D.C. worried about how some GOP war critics cast the Ukraine crisis as President Joe Biden’s war when “in reality, the consideration should be to the national interests of the United States.”

Foreign diplomats also are watching in alarm as polarizing abortion politics have delayed the promotions of U.S. military officers and threaten to damage PEPFAR, an anti-AIDS program that has saved millions of lives in Africa. That there are questions about America’s commitment to NATO dumbfounds the diplomats I talked to. Then, there are the lengthy delays in Senate confirmations of U.S. ambassadors and other officials — a trend exacerbated by lawmakers from both parties.

“There was always a certain courtesy that the other party gave to let the president appoint a Cabinet. What if these courtesies don’t hold as they don’t seem to hold now?” a former Asian ambassador said. “It is very concerning.”

When Republicans and Democrats strike deals, they love to say it shows the system works. But simply having a fractious, lengthy and seemingly unnecessary debate about a topic of global security can damage the perception of the U.S. as a reliable partner.

“It is right that countries debate their foreign policy stances, but if all foreign policy issues become domestic political theater, it becomes increasingly challenging for America to effectively play its global role on issues that need long-term commitment and U.S. political capital — such as climate change, Chinese authoritarianism, peace in the Middle East and containing Russian gangsterism,” a third European diplomat warned.

The current and former diplomats said their countries are more reluctant to sign deals with Washington because of the partisan divide. There’s worry that a new administration will abandon past agreements purely to appease rowdy electoral bases and not for legitimate national security reasons. The fate of the Iran nuclear deal was one example some mentioned.

“Foreign relations is very much based on trust, and when you know that the person that is in front of you may not be there or might be followed by somebody that feels exactly the opposite way, what is your incentive to do long-term deals?” a former Latin American diplomat asked.

Still, there’s no ambassadorial movement to band together and draw up a petition or a letter urging greater U.S. unity or focus.

The diplomats’ countries don’t always have the same interests. Some have plenty of polarizing politics themselves. In other words, there will be no intervention.

Some of the diplomats stressed they admire America — some attended college here. They acknowledged they don’t have some magical solution to the forces deepening its political polarization, from gerrymandered congressional districts to a fractured media landscape.

They know the U.S. has had polarized moments in the past, from the mid-1800s to the Vietnam War, that affected its foreign policy.

But they’re worried today’s U.S. political divisions could have lasting impact on an increasingly interconnected world.

“The world does not have time for the U.S. to rebound back,” the former Asian ambassador said. “We’ve gone from a unipolar world that we’re familiar with from the 1990s into a multipolar world, but the key pole is still the United States. And if that key pole is not playing the role that we want the U.S. to do, you’ll see alternative forces coming up.”

Russia’s diplomats, meanwhile, are among those delighting in the U.S. chaos (and fanning it). The Eastern European ambassador said the Russians had long warned their counterparts not to trust or rely on Washington.

And now what do they say? “We told you so.”

So the world’s envoys are reconsidering how their governments can deal with this America for many years and presidents to come.

Some predicted that a Republican win in November would mean their countries would have to become more transactional in their relationship with the United States instead of counting on it as a partner who’ll be there no matter what. Embassies already are beefing up their contacts among Republicans in case they win back the White House.

“Most countries will be in defensive positions, because the asymmetry of power between them and the United States is such that there’s little proactively or offensively that you can do to impact that,” said Arturo Sarukhan, a former Mexican ambassador to the United States.

When I asked diplomats what advice they’d offer America’s politicians if they were free to do so, several said the same thing: Find a way to overcome your divisions, at least when it comes to issues that reverberate beyond U.S. borders.

“Please create a consensus and a long-term foreign policy,” said Santos, the former Colombian ambassador. “When you have consensus, you don’t let the internal issues create an international foreign policy crisis.”

Davos: Global crises set to dominate gathering of business leaders

BBC News

Davos: Global crises set to dominate gathering of business leaders

Faisal Islam – Economics editor – January 15, 2024

A woman takes a picture in front of a screen displaying AI-generated artwork
A woman takes a picture in front of a screen displaying AI-generated artwork

Just a week ago, the expectation about the latest gathering of the World Economic Forum in Davos, Switzerland, was of a line being drawn under three years of pandemic, lockdown and Ukraine war energy shocks.

Inflation is falling, and 2024 was set to be the year that central banks start cutting interest rates, including here in the UK. In three years of different rolling, merging global crises, the world economy has been in the shadow of massive geopolitical shifts.

The events of the past few days shows that the “polycrisis” is far from over.

Perhaps the most telling development has been the ability of the Houthis to use relatively cheap drones and armaments to cause havoc with world trade. Air strikes on the Houthis in Yemen were carried out explicitly to keep the currents of trade and economic recovery flowing through the straits leading to the Suez Canal.

But oil prices jumped on Friday because the risk of a wider confrontation in the region has also gone up. In three months the crisis in Gaza has led to RAF jets attacking targets in Aden. What will be happening three months from now?

As it happens, this sort of fundamental diplomatic challenge is made for the World Economic Forum. Launched in 1971, and held every year in the Alpine ski resort of Davos, the conference puts together the world’s top business people and politicians, as well as key players from charity and academia.

Where else would the Israeli president, Saudi foreign minister and Qatari prime minister be present in the same space at the same time, alongside French President Emmanuel Macron, UK Foreign Secretary David Cameron, US Secretary of State Antony Blinken and Chinese Premier Li Qiang?

Expectations are low surrounding the grim situation in the Middle East, but this is the sort of place where constructive and unexpected conversations can take place discreetly.

There had been a whiff of decay about Davos since the pandemic. G7 leader appearances were getting rarer. Rishi Sunak hasn’t been and isn’t going this week. In a huge year for elections across the globe the US delegation this year is particularly thin. Republicans in particular view the event with some suspicion.

The Republican Party’s Ron DeSantis, a potential presidential candidate, last year called Davos a “threat to freedom” run by China. The Florida governor said any policies emerging from the forum were “dead on arrival” in his state. The view in Davos is that he thought that such rhetoric would play well in the presidential primaries which also start this week.

Ukraine’s President Volodymyr Zelensky is attending, and will be mindful of “Ukraine fatigue” reaching Washington DC and becoming prevalent in developing countries.

Police at Davos
Security is always tight at the Davos gathering

For the UK, some in the business community appear ready to go beyond a curious interest in the Labour Party in this election year.

Chancellor Jeremy Hunt and shadow chancellor Rachel Reeves will be competing for the attention of UK business leaders and international investors.

If business investors are worried about Labour’s economic plans, for example for extra investment spending, the World Economic Forum is exactly where it may, or may not surface. I recall then-opposition leader David Cameron’s parade of meetings with world leaders, just before he became prime minister in 2010.

There has been a backlash against some of the corporate do-gooding typical of the event, especially the recent focus by investors on companies’ environmental and social policies.

Put brutally, the world of the past two years has seen massive returns for hydrocarbon extractors, carbon emitters and arms companies.

The optimism will come from a hope that disturbed geopolitics can somehow settle without a further energy shock.

Artificial intelligence will be everywhere, with the ChatGPT-creating Open AI boss Sam Altman being paraded to the world’s business and political leaders by Microsoft, which is now vying with Apple to be the world’s biggest company.

So at the start of a delicate year of disorder and uncertainty in global politics and diplomacy, and question marks about economic recovery from years of such crisis, it is difficult to imagine a better moment for a gathering like the World Economic Forum this week.

The task is to travel towards the light at the end of the tunnel. It will not be easy.

Davos Elite Size Up the Global Risks of Another Trump Presidency

Bloomberg

Bloomberg

Davos Elite Size Up the Global Risks of Another Trump Presidency

Francine Lacqua – January 15, 2024

(Bloomberg) — Donald Trump is thousands of miles away from the Alpine Swiss town of Davos but talk of his possible return to the White House is on everyone’s lips even before the annual shindig of the global elite has kicked off.

On Monday, in the subzero temperatures of Iowa, he’s set to cement his status as the Republican frontrunner in the first GOP contest of the 2024 election. His crushing lead over rivals appears unsurmountable and polls show Trump and US President Joe Biden facing off and in a dead heat.

Last seen mingling with the Davos crowd in 2020, when he made a dramatic entrance by landing with a squadron of helicopters, Trump is the last US leader to have shown up at the World Economic Forum but has remained a popular topic of conversation for attendees ranging from CEOs, financiers and policymakers.

“You know, we’ve been there before, we survived it, so we’ll see what it means,” BlackRock Inc. Vice Chairman Philipp Hildebrand said in a Bloomberg Television interview. “Certainly from a European perspective, from a kind of globalist, Atlanticist perspective, it’s of course a great concern.”

The former Swiss National Bank president shared the assessment of European Central Bank President Christine Lagarde, who last week said in plain language unusual for a central banker that another term of Trump would clearly be a threat.

Former US Vice President Al Gore, of course, is no stranger to political shocks having come within a whisker of becoming president himself almost a quarter of a century ago. These days he’s better known for being a climate warrior but he shared some caveats about assuming Trump is an inevitability even as the Republican candidate.

“I don’t think that it’s a foregone conclusion,” he told Bloomberg Television in Davos. “I’ve been through the process, I’ve run four national campaigns over the years and seen it from that perspective. I’ve seen a lot of surprises over the years. Something tells me this may be a year of significant surprises. I hope it’s the case because I don’t want to see him re-nominated and re-elected.”

He even issued a warning about not overplaying the importance of the Iowa vote.

“I’m not sure they’re as significant as some believe, he said. “There have been so many examples – last time in 2016 Ted Cruz won the Iowa caucus, and then it mattered not a whit. We’ve seen others win the Iowa caucus on the Republican side and then disappear.”

–With assistance from Laura Millan and Zoe Schneeweiss.