Archive for the ‘economics’ Category

Amnesty and Our Future.

Saturday, March 14th, 2015

I came across an excellent long post at Bookworm this morning. I have been very aware of the growing presence of illegal aliens in California for the past 40 years. Not far from my home you can see some of it as Hispanic men gather at street corners looking for day labor.

j and l

Two such corners are at Jeronimo and Los Alisos in Mission Viejo. Another is a half mile away at a U-Haul yard where people rent trucks and trailers. Every morning you will see 50 to 60 men standing on the corner and running over to any car that seems to be slowing down or stopping.

Anyway, here are a few reflections on what is happening.

The communists’ big moment came in 1995 when no one was looking. That was the year that the Democratic Socialists of America, a communist group, put one of their own — John Sweeney — in as head of the AFL-CIO. Overnight, the AFL-CIO, an organization that was once ferociously anti-communist and that opposed amnesty because it would hurt working Americans, turned into a pro-communist, pro-amnesty group.

More than that, through the AFL-CIO, communists suddenly owned Congress. After all, unions (headed by the SEIU, which outspends the next two donor organizations which are also Leftist) are the largest contributors to Democrat politicians.

Ok, Ok I know that communists are an old story. Still, what we see in this country is Socialism gaining adherents among the young and poorly educated and among the rich who consider themselves immune to its ill effects.

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Is War Coming ?

Wednesday, February 11th, 2015

There are three, possibly four, major areas of international strife and all are getting worse as we watch.

Europe is trying to deal with Vladimir Putin and the new Russia. It is not doing well.

There was a palpable tone shift in U.S. policy toward Ukraine this week, when the Obama administration signaled that it was ready to consider sending the country lethal military aid. A confluence of factors is pushing President Obama toward this decision. The fragile ceasefire brokered in September between Ukraine and Russian-backed separatists has failed, manifested in the series of recent and high-profile separatist advances against the Ukrainian military this week. Bipartisan congressional support for sending weapons to Ukraine, championed by Sens. John McCain (R-Ariz.) and Robert Menendez (D-N.J.), as well as a newly released report by former senior U.S. and European officials recommending lethal military aid for the embattled country, have also contributed to Obama and his tight inner circle of foreign policy advisers reconsidering the lethal aid option.

Will this happen ? I doubt it.

As Kadri Liik of the European Council on Foreign Relations pointed out recently , many Western leaders persist in seeing the Ukraine invasion as a hiccup in relations with Russia that can be smoothed over, rather than as a demonstration that Mr. Putin’s agenda is fundamentally at odds with Europe’s security interests and its values. Because of their attachment to the hiccup theory, governments — including the Obama administration — have refused to take steps, such as providing the Ukrainian government with defensive weapons, that could help stop Mr. Putin’s aggression. Instead, they concoct futile schemes for “reengaging” the Russian ruler.

The next crisis will be the end of NATO.

Late this week, the Obama administration unveiled its new National Security Strategy, amid less than fanfare, with the execrable Susan Rice explaining in “remain calm, all is well!” fashion that things are really much better globally than they look. This White House’s new foreign policy mantra is Strategic Patience, which seems to be the been-to-grad-school version of “don’t do stupid shit.” Since nobody inside the Beltway is taking this eleventh-hour effort to articulate Obama’s security strategy seriously, it’s doubtful anyone abroad, much less in Moscow, will either.

Soon, Putin will turn his gaze on the Baltics.

Jaws dropped this week when Anders Fogh Rasmussen, who until recently was NATO’s civilian head, stated that it is highly likely that Russia will soon stage a violent provocation against a Baltic state, which being NATO countries, will cause a crisis over the Alliance’s Article 5 provision for collective self-defense. Rasmussen merely said what all defense experts who understand Putin already know, but this was not the sort of reality-based assessment that Western politicians are used to hearing.

NATO has disarmed and is in panic mode now if they have to face Russia, weak as it is in the long term. As Keynes said, “In the long term we are all dead.” We are partly responsible for this state of affairs.

Not all the fault for this sorry state of affairs lies in Europe. Here America has played an insidious role too, encouraging spending on niche missions for the Alliance at the expense of traditional defense. Hence the fact that Baltic navies have considerable counter-mine capabilities — this being an unsexy mission that the U.S. Navy hates to do — yet hardly any ability to police their maritime borders against intruding Russians. To make matters worse, since 2001 the Americans have encouraged NATO partners to spend considerable amounts of their limited defense budgets on America’s losing war in Afghanistan.

We should have gotten out in 2009. The absurd Rules of Engagement are only part of it.

Now, we face another major threat in the Middle East, Theater Two.

For the situation with Iran, I have long relied on the writing of Spengler.

Dying civilizations are the most dangerous, and Iran is dying. Its total fertility rate probably stands at just 1.6 children per female, the same level as Western Europe, a catastrophic decline from 7 children per female in the early 1980s. Iran’s present youth bulge will turn into an elderly dependent problem worse than Europe’s in the next generation and the country will collapse. That is why war is likely, if not entirely inevitable.

The rulers of Iran have shown no moderation of their messianic beliefs and their willingness to destroy themselves to bring about the coming of the Twelfth Imam.

Twelver Shi‘a believe that al-Mahdi was born in 869 (15 Sha‘bin 255 AH) and assumed Imamate at 5 years of age following the death of his father Hasan al-Askari. In the early years of his Imamate he would only contact his followers through The Four Deputies. After a 72-year period, known as Minor Occultation, a few days before the death of his fourth deputy Abul Hasan Ali ibn Muhammad al-Samarri in 941, he is believed to have sent his followers a letter. In that letter that was transmitted by al-Samarri he declared the beginning of Major Occultation during which Mahdi is not in contact with his followers.

The coming of the Imam is part of the end of the world and the rulers of Iran are “Twelvers.”

Shi’as believe that Imam al-Mahdi will reappear when the world has fallen into chaos and civil war emerges between the human race for no reason. At this time, it is believed, half of the true believers will ride from Yemen carrying white flags to Makkah, while the other half will ride from Karbalaa’, in the `Iraq, carrying black flags to Makkah. At this time, Imam al-Mahdi will come wielding `Ali’s Sword, Zulfiqar , the Double-Bladed Sword. He will also come and reveal the texts in his possession, such as al-Jafr and al-Jamia.

The Shi’ites have this belief as part of their religion and the rulers of Iran seem to be sincere in their beliefs, which is why Obama is insane to consider them rational.

The Sunni equivalent is the new group called Islamic State in Syria and various other names.

The recent rise in terrorist attacks is only one part of the problem. We also see the collapse of Iraq after Obama removed all US troops.

What are we going to do about all this? Probably nothing as Obama has a master plan that will solve all our problems. He will make friends with our worst enemies.

What about China ? We were going to “pivot to Asia.”

One question is whether China is stable. There are questions about China’s economic future.

Beijing can manage a rapidly declining pace of credit creation, which must inevitably result in much slower although healthier GDP growth. Or Beijing can allow enough credit growth to prevent a further slowdown but, once the perpetual rolling-over of bad loans absorbs most of the country’s loan creation capacity, it will lose control of growth altogether and growth will collapse.

The choice, in other words, is not between hard landing and soft landing. China will either choose a “long landing”, in which growth rates drop sharply but in a controlled way such that unemployment remains reasonable even as GDP growth drops to 3% or less, or it will choose what analysts will at first hail as a soft landing – a few years of continued growth of 6-7% – followed by a collapse in growth and soaring unemployment.

What would happen then ? I just don’t see a war with China in our future, partly because neither of us can afford it. China is threatening its neighbors, like Japan and the Philippines, but we are unlikely to intervene. Our former allies in the east are now seeking help from each other as Obama destroys the US influence.

Unemployment benefits and jobs

Wednesday, January 28th, 2015

The Pelosi Congress extended unemployment benefits in 2009 to a maximum of 53 weeks. This has been renewed until the new Republican Congress after 2010, unable to get Obama to negotiate, allowed the extra benefits to lapse.

Federal unemployment benefits that continue for 26 weeks after a person uses up the 26 weeks of state unemployment benefits ended Saturday, so now some 1.3 million people won’t be getting their $1,166 (on average) monthly check. By June, another 1.9 million will be cut off.

Many in the federal government are talking about the need to extend benefits. President Obama labelled it an “urgent economic priority” and called a couple of senators to pressure them to bring the matter up when the Senate reconvenes next week, and is urging Congress to extend the benefits for another three months. Senate Majority Leader Harry Reid has promised a vote no later than January 7 for the three month extension. Gene Sperling, the head of Obama’s National Economic Council, lamented the end of the federal aid…

Disaster was predicted.

Amazingly, the disaster did not happen. In fact, job growth went up.

Just looking at the economy’s overall size, you wouldn’t think that the last year was much different from any of the others since the recession. The U.S. economy grew at about the same rate in 2014 as it did in the previous four years — less than 2.4 percent, according to the Federal Reserve’s most recent projection. Yet last year was different. People started going back to work. The percentage of Americans working, more or less stuck in a ditch since 2009, increased from 58.6 percent in December 2013 to 59.2 percent last month. Employers added an average of 246,000 positions a month, about 3 million jobs overall.

What happened ?

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Rape Culture

Sunday, December 14th, 2014

UPDATE: here is another pretty good article on this topic as even the left starts to realize the truth.

The country is going through one of the increasingly common episodes of hysteria in modern times. In the 17th century, there was the period of The Salem Witch Trials.

From June through September of 1692, nineteen men and women, all having been convicted of witchcraft, were carted to Gallows Hill, a barren slope near Salem Village, for hanging. Another man of over eighty years was pressed to death under heavy stones for refusing to submit to a trial on witchcraft charges. Hundreds of others faced accusations of witchcraft; dozens languished in jail for months without trials until the hysteria that swept through Puritan Massachusetts subsided.

The episode was begun by what sounds like hysterical symptoms occurring in the daughter of the new minister. Before it was over, a number of people of the village of Salem had been accused of witchcraft and 19 were executed and five others had died.

SALEMCLR

Suspected witches were examined for certain marks, called “witch marks,” where witches’ “familiars” could nurse. The hysteria ended as quickly as it began. By the end of 1692, it was over and all surviving accused were released.

The period of the hearings in America after World War II, in which many were accused of being communists, the so-called “McCarthy period,” is often compared to this era and a left wing playwright, Arthur Miller, wrote a play called “The Crucible,” which made the connection between the Salem trials and Senator McCarthy’s accusations the theme.

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Gruber’s lies.

Wednesday, December 10th, 2014

The left does not do economics. They do politics and elections and lying to get past the “stupid voters” but, when pressed, nothing they do qualifies as numerically or mathematically sound. Social Security worked until everyone found the queue and until Congress raided the trust fund in the 90s.

Obama and the Democrat leaders knew that Hillary made enemies of the insurance companies in 1992. The insurance companies funded devastating TV ads with “Harry and Louise” that cost the Democrats Congress in 1994. Therefore, they had to do what was necessary to get the insurance companies “inside the tent pissing out and not outside the tent pissing in” in Lyndon Johnson’s immortal words.

Insurance companies have considered health insurance a loser for 25 years now. What they prefer is becoming “Administrative Service Organizations” which administer self funded health plans by employers.

Corporate benefits include- organizing/ negotiating health insurance, group dental, STD, LTD, life, etc.

The plan the Democrats came up with, with Gruber’s help, was to make the government the funding entity and pay the insurance companies to run the program. That way everybody is happy, except, of course, the taxpayer. The taxpayer does not like tax increases which would be needed to pay the bills. Therefore the taxpayer has to be fooled.

The excise tax on high-cost health plans was among the many fees and taxes proposed as offsets to help slow the rate of growth of health costs, particularly premium growth, and finance the nationwide expansion of health coverage. When the Affordable Care Act was signed into law in March 2010, its coverage provisions were estimated to cost more than $900 billion over the next decade, from 2010 to 2019, and were to be paid for by fees and taxes on both individuals and businesses. At the time the health reform bill passed, the excise tax on high-cost plans was estimated to raise roughly $32 billion in revenue over the next decade, or by 2019.

Without the taxes to pay the bills, the whole plan collapses. At its base, Obamacare is Medicaid for everyone. The employer mandate has been, contrary to the text of the law, postponed as the flaws in implementation appear. If it were to be enforced, there would be a revolution. The funding from employee plans is called “The Cadillac Tax which is an excise tax on employer plans that exceed the benefits of Medicaid.

As health coverage expands to tens of millions of Americans–through Medicaid expansion in states and the new state health insurance exchanges that will soon begin selling individual health coverage–some Americans with employer-sponsored health coverage are seeing their benefits decrease.

One of the most significant, and controversial, provisions of the Affordable Care Act is the new excise tax on high-cost health plans proposed to both slow the rate of growth of health costs and finance the expansion of health coverage. The provision is often called the “Cadillac” tax because it targets so-called Cadillac health plans that provide workers the most generous level of health benefits. These high-end health plans’ premiums are paid for mostly by employers. They also have low, if any, deductibles and little cost sharing for employees.

If this is ever implemented, the Medicaid-for-all nature of Obamacare will become obvious. That’s why it will not happen. The fundamental premise behind Obamacare is not viable. That is why it will fail and the numbers do not add up.

Gruber can’t say this. All he can do is obfuscate.

China and Russia

Thursday, December 4th, 2014

The future is unrolling before our eyes as idiots parade around in the US not knowing what they are doing.

I am always amazed at how prescient Tom Clancy was.

Richard Fernandez has a post about China and Russia’s resources in Siberia. That was the plot of the Tom Clancy novel, “The Bear and the Dragon.” In it he predicted a war between China and Russia for the riches of what he described as “The Northern Resource Area.”

The battle of Khalkhin ended Japan’s plan for ” Hokushin-ron”

800px-Hokushin-ron-Map

Clancy’s concept was that China would some day adopt this strategy and it seems to be coming to pass. The Soviet Union, prior to the German invasion of 1941, was strong enough to repel Japan, which concluded a nonaggression treaty, this freeing their rear for Pearl Harbor. Now, Putin’s Russia may not be strong enough to repel China. David Goldman sees the Chinese strategy in a time of US weakness and fecklessness.

Everything in tragedy happens for a reason, and the result always is sad; most things in comedy happen by accident and the outcome typically is happy. Sino-American relations are not destined for conflict, although that is possible. The misunderstandings that bedevil relations between the world’s two most powerful countries remain comedic rather than tragic. That probably is as good as it gets, for no amount of explanation will enable Chinese and Americans to make sense of each other.

Where the Chinese are defensive and cautious, the Americans tend to perceive them as aggressive; where the Chinese are expansive ambitious, the Americans ignore them altogether. The United States is a Pacific power accustomed to maritime dominance.

Under Obama, few can understand US foreign policy, least of all him.

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The disgrace of the IRS

Tuesday, November 25th, 2014

The IRS scandal has forever discredited the Internal Revenue Service. The scandal is going on two years in length. It began with the notorious Lois Lerner, who headed a division called “The Exempt Organizations Unit.” This was supposed to evaluate applications for tax exemption.

Lerner served for a time on Federal Election Commission, which suggested her interest in electoral politics.

Lerner began her IRS service in 2001 as Director Rulings and Agreements in the Exempt Organizations function of TEGE. [2] In January 2006, she was selected as Director Exempt Organizations. In this capacity, Lerner led an organization of 900 employees responsible for a broad range of compliance activities, including examining the operational and financial activities of exempt organizations, processing applications for tax exemption, providing direction through private letter rulings and technical guidance and providing customer education and outreach to the exempt community.

Here it is apparent that she was promoted by the Bush Administration and was not a political appointee of the Obama people. Why was she involved in this scandal ? The Treasury Department is run by a career Civil Service bureaucracy. Career federal agents and employees are prevented from political partisan activity by The Hatch Act of 1939. Does this work ?

No.

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Obama’s “Amnesty.”

Saturday, November 22nd, 2014

I am not happy about Obama making his speech about amnesty and defying the GOP newly elected Congress to do anything about it. However, there is less here than it seems.

First: And to those members of Congress who question my authority to make our immigration system work better or question the wisdom of me acting where Congress has failed, I have one answer: Pass a bill. I want to work with both parties to pass a more permanent legislative solution. And the day I sign that bill into law, the actions I take will no longer be necessary.

king obama

I don’t believe him but the GOP could do worse than assume this is true. The next steps would be to take actions assuming he was not lying.

Obama clearly wanted to make himself look like the compassionate actor in this debate, and Republicans the heartless, cruel nativists. Instead of trying to fight that battle, make Obama own it and bypass it for the real battle the GOP wants to win on border security. Make Democrats vote against a border security bill, and make Obama veto one while his own amnesty remains in place.

Not everybody is willing to accept this as a phony gesture which I think it is.

When President Obama announces that he will be suspending laws to bless the illegal presence of millions of foreigners in the United States, he will have adopted the most basic philosophy of John C. Calhoun: some laws can be tossed aside because his ends justify the lawlessness.

I don’t trust Obama’s intent but I think he is a fool and did not plan this correctly, or else chickened out. There is more interesting comment at Powerline today.

Procedurally what happens is an undocumented person applies for ‘deferred action’ and then after receiving this ‘quasi-status’ – he/she is eligible for work authorization.

See the last paragraph on page 4 of this key memo: “Applicants must file the requisite applications for deferred action pursuant to the new criteria described above. Applicants must also submit biometrics for USCIS to conduct background checks similar to the background check that is required for DACA applicants. Each person who applies for deferred action pursuant to the criteria above shall also be eligible to apply for work authorization for the period of deferred action, pursuant to my authority to grant such authorization reflected in section 274A(h)(3) of the Immigration and Nationality Act.”

I still think the Republicans can trump this with real reform. Then they can send a bipartisan bill to Obama and see if he vetoes it. That Powerline post also emphasizes that Silicone Valley is pushing this and that explains their support of Obama.

How many Senate Democrats would be willing to sustain that veto before the 2016 election? I’m betting not too many. But Republicans have a perfect opportunity to turn the debate in that direction now and force Obama and his shrinking number of allies on Capitol Hill to go on the record.

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Could Obama go rogue if the Senate flips ?

Saturday, October 11th, 2014

Roger L Simon has an interesting column on the consequences of a GOP win this fall.

Barack Obama is a man unaccustomed to losing. Life has been exceptionally kind to him, sailing, as he did, through balmy Oahu sunsets, college, law school and career on into the presidency with scarcely a bump. He has been a protected man beyond any in recent memory, feted and praised virtually everywhere he went until the last couple of years. Even now, despite catastrophe after catastrophe, there are acolytes who continue to celebrate him, paying tens of thousands merely to have their photographs taken with him.

When such cosseted people are forced to confront failure, they typically do not do so with grace.

Obama’s style of governing seems to be quite unusual for modern presidents. He does not have a circle of “Wise Men” as most presidents have done, including Bill Clinton, who had Robert Rubin advising him on economics and the bond market.

Obama, instead, relys on a small circle of advisors with little or no experience in national affairs.

Insider books by Robert Gates, Hillary Clinton and Leon Panetta have appeared in rapid succession, implying or directly alleging that the president lives in a bubble, unwilling to listen to advice. He frequently threatens to — and sometimes does — go around the Congress to get his way via, often unconstitutional, executive fiat. We all know that he lies, constantly.

His closest advisor appears to be Valerie Jarrett who has no policy experience and who seems to be a Chicago insider.

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Is Britain beginning the revolution we need ?

Saturday, August 30th, 2014

A “Seismic Shock is coming to the British political system.

Douglas Carswell, a prominent Conservative MP has announced he is switching to UKIP. a new political party that has been attacked as “racist” and has been attracting a larger constituency from the British traditional voters.

A new political party has appeared in Britain called UK Independent Party. It has been called racist and a number of other things that might sound familiar to Tea Party members here.

For example:

News reports about the rising primary school population in England fail to mention the ‘elephant in the room’, said MEP Paul Nuttall.

“It is accepted that primary schools have increasing numbers of pupils, which causes all manner of problems, but what is frequently not referred to is why we have such a boom in numbers.

“And the answer is unlimited immigration into this country. It hits some areas harder than others but there cannot be many primary schools in the country which have not been affected at all,” said Mr Nuttall, UKIP Education spokesman.

Why is this controversial ? In the 1990s, the Labour Party opened the floodgates of immigration from Pakistan. The Conservatives have mentioned reducing this but have done little about it.

Steven Woolfe, UKIP Migration spokesman, attacks Conservatives for ‘lying to electorate’ on promises to cut migration, adding that ‘it is no wonder their own MPs are losing faith in them and they are haemorrhaging support to UKIP.’

“These shocking figures today show that the Government does not have a handle on immigration. The Conservative Party promised to cut net migration to tens of thousands and yet it has shot up by a staggering 68,000 in just one year. It is quite simple. They lie to the electorate. They lie to try to keep votes. Well they are being found out.

This is one reason why UKIP is hated. For example, of the 1400 young girls made sex slaves by “Asian” men, several were taken from foster parents because they had voted for UKIP.

A couple had their three foster children taken away by a council on the grounds that their membership of the UK Independence Party meant that they supported “racist” policies. The husband and wife, who have been fostering for nearly seven years, said they were made to feel like criminals when a social worker told them that their views on immigration made them unsuitable carers.

Sounds like the Tea Party to me.

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