Crypto-mining -- Reality Sucks -- January 14, 2021

Oil prices: a perfect storm (in this case, a good storm)? Did Saudi get it right time? Third time's a charm:

• weak dollar
• cut in production
• risk-on trade (Covid-19; global economy expected to expand)

The Fed: from a conservative financial advisor / analyst at a major financial institution earlier today -- based on Jay Powell's comments today --

• Powell said they want to see inflation rate at 2% for quite some time -- which means at least for one to two years after inflation hits 2%;
• Fed with two mandates: inflation and jobs; no comment regarding which one the Fed was paying attention to right now;
  
• the Fed would be happy with 10-year Treasury at an average of 2% -- if that's an average going back several years, it would take several years to average 2%; he thinks the Fed would be willing to let the 10-year Treasury go to 5% to get an average of 2% over several years;
• I may have the specifics wrong, but that was the general conversation
• bottom line: the Fed is not worried about the 10-year Treasury at all
• 10-year Treasury today: after dropping below 1.1% is now back above 1.1%;
  

Crypto-mining: link at Aljazeera; also at Bloomberg, elsewhere: Iran's smog, blackouts made worse by power-sapping crypto-mining. Is this why Iran needs that nuclear energy?

• Three big locations for cryptomining: Iceland, Iran, and China. Probably also Russia (Siberia). 

NYC rentals surge; up 94% in December. I assume this is month-over-month. Rental rates have come down significantly. CNBC. But the vacancy remains at a record. 

Airlines: enough is enough. 

First, the end of the "comfort animal" scam. Now the FAA steps in and tells the airlines: zero tolerance when it comes to "unruly behavior." Zero tolerance, masks, $35,000 fines, jail time on the table. All fallout from the storming of the Capitol last week.

Also, no longer can folks "check" firearms when traveling to Washington, DC.

These are temporary measures to expire March 30, 2021, but my hunch: "everyone" wants to seem them extended indefinitely. Why shouldn't there be zero tolerance for unruly passengers on airlines? This FAA directive also gives airlines "cover" from successive liability suits.

United is adding folks to their list of "banned from the airline forever."

Energy stocks: on fire. Every time I look up at the CNBC crawler I see familiar energy ticker symbols surging and I'm not using the word loosely. It is truly incredible. For example, I just noticed PSX, up 4% and pays almost 5%.

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Natural gas fill rate. Link here.  

Gasoline demand. Link here.