text: This is the next front in the diplomatic war between the United States and China, which is already being waged. The Solomon Islands showed us exactly how this works. In May, the Solomons agreed to what Chinese officials described as a “mutual defense pact” with China. Solomons officials were adamant that the deal didn’t include plans for a Chinese naval base, however, they were open to closer military relations with China, as well as domestic security support. The prospect of the Solomons coming under the orbit of China caused grave concern for Australia, New Zealand, and the United States. The Biden administration, in particular, quickly sortied out State Department officials to the Solomons and a month later announced increased aid to the Pacific Island Forum to prevent other countries from following suit. Following the likely Western carrot and stick back channel diplomacy, the Solomon Islands spun 180 degrees and said that their China deal was overblown, that the West was reading too much into it, and that Australia remains their “security partner of choice.” But just this week, the Solomon Islands turned away a U.S. Coast Guard ship, following news reports out of Australia that the Solomon Islands office of the Prime Minister had distributed Chinese payments to members of parliament.China’s short-lived diplomatic victory in the Solomon Islands may be turning another corner as China’s Global South strategy will continue. Based on repeated speeches and statements made by Chinese officials, BRICS countries represent the core of the GSI, and Xi likely believes their rising diplomatic and economic power will be enough to peacefully counter and overthrow the U.S.-led global order. Whether the U.S. order goes peacefully is another matter, but Xi sees the alliance between BRICS and the Global South as key to achieving this global revolution – not militarily, but economically, monetarily, and diplomatically. – M.S.INSIDE THE BELTWAYWHITE HOUSE: During a speech yesterday, President Biden accused Trump Republicans of political extremism. “What we’re seeing now is either the beginning or the death knell of extreme MAGA philosophy. It’s not just Trump, it’s the entire philosophy that underpins the — I’m going to say something, it’s like semi-fascism,” he said. In a speech later in the day, Biden continued: “The MAGA Republicans don’t just threaten our personal rights and economic security. They’re a threat to our very democracy. They refuse to accept the will of the people. They embrace political violence. They don’t believe in democracy.”CONGRESS: Nothing Significant to ReportDOMESTIC INTSUMFOOD & AG: According to the USDA’s latest reporting, the U.S. cattle population, including cows and heifers that have calved, remains down 2% from last year, while cattle slaughtered is also down 2%. Average live weight was also down 8 pounds since last year.ENERGY: Officials from British Petroleum announced the closure of several units at its Whiting Refinery following an electrical fire. The closure is the result of ongoing investigations to determine the cause of the fire and locate any damages. The 1,400-acre facility in Whiting, Indiana, is BP’s largest refinery and processes over 430,000 barrels per day of sour crude from nearby Ohio, producing large quantities of liquid fuels and 7% of all American asphalt products. BP has yet to announce when affected units are expected to be reopened. ECONOMY: The Personal Consumption Expenditure (PCE) Price Index declined to 6.3% from 6.8% in June. Core PCE, prices paid for everything except food and energy, grew 4.6%, down from 4.8%. Personal savings rates remained unchanged, and personal income grew 0.2%.