Where the Tax Money Is
Obama targets the middle class while pretending to tax only the rich
A dominant theme of President Obama's budget speech last Wednesday was that our fiscal problems would vanish if only the wealthiest Americans were asked "to pay a little more." Since he's asking, imagine that instead of proposing to raise the top income tax rate well north of 40%, the President decided to go all the way to 100%.
Let's stipulate that this is a thought experiment, because Democrats don't need any more ideas. But it's still a useful experiment because it exposes the fiscal futility of raising rates on the top 2%, or even the top 5% or 10%, of taxpayers to close the deficit. The mathematical reality is that in the absence of entitlement reform on the Paul Ryan model, Washington will need to soak the middle class—because that's where the big money is.
Consider the Internal Revenue Service's income tax statistics for 2008, the latest year for which data are available. The top 1% of taxpayers—those with salaries, dividends and capital gains roughly above about $380,000—paid 38% of taxes. But assume that tax policy confiscated all the taxable income of all the "millionaires and billionaires" Mr. Obama singled out. That yields merely about $938 billion, which is sand on the beach amid the $4 trillion White House budget, a $1.65 trillion deficit, and spending at 25% as a share of the economy, a post-World War II record.
Say we take it up to the top 10%, or everyone with income over $114,000, including joint filers. That's five times Mr. Obama's 2% promise. The IRS data are broken down at $100,000, yet taxing all income above that level throws up only $3.4 trillion. And remember, the top 10% already pay 69% of all total income taxes, while the top 5% pay more than all of the other 95%.
We recognize that 2008 was a bad year for the economy and thus for tax receipts, as payments by the rich fell along with their income. So let's perform the same exercise in 2005, a boom year and among the best ever for federal revenue. (Ahem, 2005 comes after the Bush tax cuts that Mr. Obama holds responsible for all the world's problems.)
In 2005 the top 5% earned over $145,000. If you took all the income of people over $200,000, it would yield about $1.89 trillion, enough revenue to cover the 2012 bill for Medicare, Medicaid and Social Security—but not the same bill in 2016, as the costs of those entitlements are expected to grow rapidly. The rich, in short, aren't nearly rich enough to finance Mr. Obama's entitlement state ambitions—even before his health-care plan kicks in.
So who else is there to tax? Well, in 2008, there was about $5.65 trillion in total taxable income from all individual taxpayers, and most of that came from middle income earners. The nearby chart shows the distribution, and the big hump in the center is where Democrats are inevitably headed for the same reason that Willie Sutton robbed banks.
This is politically risky, however, so Mr. Obama's game has always been to pretend not to increase taxes for middle class voters while looking for sneaky ways to do it. His first budget in 2009 included a "climate revenues" section from the indirect carbon tax of cap and trade, which of course would be passed down to all consumers. Such Democratic luminaries as Nancy Pelosi have often chattered about a European-style value-added tax, or VAT, which from a liberal perspective has the virtue of applying to every level of production or service and therefore is largely hidden from the people who pay it.
Now that those two ideas have failed politically, Mr. Obama is turning as he did last week to limiting tax deductions and other "loopholes," such as for mortgage interest payments. We support doing away with these distortions too, and so does Mr. Ryan, but in return for lower tax rates. Mr. Obama just wants the extra money, which he says will reduce the deficit but in practice will merely enable more spending.
Keep in mind that the most expensive tax deductions, in terms of lost tax revenue, go mainly to the middle class. These include the deductions for state and local tax payments (especially property taxes), mortgage interest, employer-sponsored health insurance, 401(k) contributions and charitable donations. The irony is that even as Mr. Obama says he merely wants the rich to pay a little bit more, his proposals would make the tax code less progressive than it is today.
Mr. Ryan isn't proposing controversial entitlement reforms because he likes pointless political risk, or because he likes being berated to his face from a front row seat, as he was on Wednesday. Medicare and Medicaid spending are consistently growing two to three times faster than the rest of the economy, while Medicare's cash-in-cash-out financing model means that seniors collect far more in benefits than they paid in taxes over their working lifetime. The entitlement state was designed for another era.
Mr. Obama's speech was disgraceful for its demagoguery but also because it contained nothing remotely commensurate to the scale of the problem. If the President had come out for a large tax on the middle class, like a VAT, then at least the country could have debated the choice of paying for the government we have or modernizing it a la Mr. Ryan so it is affordable.
Instead the President will continue targeting the middle class for tax increases to pay for an entitlement state on autopilot, while claiming he only wants to tax the rich.
SOURCE
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Trump won't release tax info unless Obama provides birth certificate
If Donald Trump runs for president, he says he won't release his tax returns unless President Obama releases his birth certificate.
The latest attention-grabbing sound bite from the media mogul came in an interview with ABC's George Stephanopoulos Tuesday, during which Trump was decidedly non-committal on what his policy toward tax disclosure will be. A presidential candidate is not required by election law to disclose tax returns, though most voluntarily do.
"I think I may tie mine into his birth certificate. But I've built a great company," Trump said. "It's a strong company. It's an under-levered company. I've got a lot of cash and a tremendous net worth, far greater than even numbers that you've read."
But Trump added that he will disclose his financial entanglements and net worth - a figure that few have been able to estimate with any confidence.
"I have a great company. I've done a great job. Which if I run, you'll see what a great job. Because I'll do a full disclosure of finances," he said.
SOURCE
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Statists and the Racial 'Health Gap'
I often speculate that deep in the bowels of the Obama administration there exists an obscure office charged with inventing egalitarian schemes to increase American dependency on government. Ignore the high-sounding "fairness" and "equality" rhetoric. The President's minions just cannot stop pushing, even boldly lying until the last vestiges of limited government and individual initiative are history.
The latest eruption of this endeavor was recently announced by Dr. Howard Koh, Assistant Secretary of Health and Human Services: the federal government would close the health gap between "minorities" and whites. These health disparities, he added, have burdened our country for too long (go here for the official statement).
This is a remarkably slapdash proposal that would make a hardcore Stalinist blush. It will probably never fully get off the ground, but as a window to what passes as "policy" in the statist Obama administration, it is invaluable.
The proposal makes race/ethnic differences central. This is unlike Marxist egalitarianism that stressed economic inequalities. Now, however, race and ethnicity trump economics, so rich African Americans, but not poor whites, are "disadvantaged." This is tribalism and, pray tell, how do racial/ethnic differences, not the actual level of illness, "burden" the US? What if all whites were struck with a plague? Would this lessen our "burden"? Would health care now be more "fair"? Might liberal whites volunteer to become sick so as to reduce inequality? Moreover, given the murkiness of racial and ethnic distinctions, proper implementation will require Nazi-style Nuremburg-like laws to certify racial/ethnic identity.
Second, how will this venture be financed in today's tough economic times? No problem, according to program advocates since: (a) we don't know how much the program will cost; and (b) the money is already there and not subject to congressional review. So, a program lacking a price tag is being proposed but whatever the cost, no congressional approval is needed. The need for compulsory remedial Political Science 101 is obvious.
Let's consider the actual crusade. Minorities are clearly less healthy than whites as indicated by incidences of heart disease, diabetes, infant mortality, certain cancers, asthma, and kidney disease (see here). But, disentangling this race/ethnicity/income/health relationship is a nightmare and entails some awkward unspeakable PC issues that warrant attention (see here). For example, certain racial groups may be genetically pre-disposed toward some illnesses (e.g., Hispanics and asthma, blacks and hypertension). Perhaps only genetic engineering can close these gaps so why waste millions better spent elsewhere? And, how do we address health problems like osteoporosis that disproportionally afflict whites?
Even more awkward, some minority group members may prefer shopping to annual checkups, even low-cost insurance, and why should government dictate these personal priorities? Surely the risks of AIDS and sexually transmitted diseases (both of which affect minorities) are known and perhaps these illnesses just reflect poor judgment, not equal access to health care. Alas, all these complicated issues are swept aside to level healthiness.
Nevertheless, how can gaps be closed? Proposed measures are a grab bag of half-baked ideas that all rest on the supposition that those disproportionally prone to illness really want to be healthy but, for some inexplicable reasons, just cannot secure the required medical benefits. There is the predictable call for recruiting more "under-represented populations" to the health profession (i.e., affirmative action). In fact, a 2009 Report on this health gap made diversifying the health profession central to improving minority health, as if black doctors could better treat black patients. The government will also collect more health data sub-divided according to race and ethnicity, a tactic that guarantees uncovering even more "unfairness."
The solution also includes hiring armies of busy-body scolds. For example, since Hispanic youngsters fail to get adequate dental care, the government will employ Spanish-speaking promotoras to "guide" their neighbors to regular dental check-ups. Similarly, local community health workers will be paid to teach neighbors about diabetes and the importance of following doctor recommendations, while Head Start programs will now also target parents needing medically-related prodding. Add an incentive program to entice minorities to seek better medical treatment, increased funding for asthma care, a national registry of interpreters to help non-English speakers when visiting doctors and hospitals, more research funds for studies on illness that unequally affect minorities and more community meetings to solicit advice on how to help minorities be healthier. How all of this can be accomplished with already available funds remains to be seen.
The tip-off to the underlying paternalism is the assumption that poor health reflects a lack of access to fresh fruits and vegetables plus barriers to physical activity. This is a familiar refrain from America's egalitarian Mandarins -- without government intercession broccoli and apples are beyond reach, and so minorities will naturally (and foolishly) choose double bacon cheeseburgers. Similarly, without Washington's counsel, minorities are incapable of walking, jogging, or doing sit-ups in their living room. In a sense, minorities are viewed as young children unable to help themselves, and, furthermore, capitalist markets just refuse to satisfy minority customer demand for fresh produce or gyms. Where is capitalist greed when we need it?
But, mere foolishness disguises the real agenda. If one digs a little deeper than upbeat media news accounts the program's real purpose emerges -- promoting statism (see here). The aim is not just helping African Americans get cheaper, more convenient colonoscopies. In particular, since all this haranguing to eat better, stop smoking, have safe sex, etc., etc. will probably not reduce the healthcare gap (consider all the past failed public health PR campaigns), the only sure outcome is more bloated government as efforts are multiplied. HHS openly links the initiative to ObamaCare and explicitly hopes to "transform" health care, hardly the type of program that could be funded without recourse to congressional approval.
This will be a gigantic make-work boondoggle and highly invasive, to boot. I can already visualize the federal food police raiding local "snack houses" where obese teenagers secretly devour Ho-Hos and Ding Dongs. Tens of thousands of promotoras will have to hired (and trained) to pester fellow Hispanics to get annual check-ups and good luck to all those community organizers going door-to-door waging war on Kentucky Fried Chicken. Expand the definition of "health" to include some criminal behaviors and parental neglect of children and this "modest" program may soon rival Medicaid.
Unfortunately, this latest Obama state-expanding scheme is not unique. Michelle Obama's effort to cut childhood obesity is just as bad if one peeks behind the curtain (see Meghan Clyne, "Michelle's Machine," The Weekly Standard, April 11, 2011). Working through the White House Office of Faith Based and Neighborhood Partnership the Obama administration has enlisted churches to snarl millions more into state dependency. For example, congregations are now implored to push as many parishioner children as possible into government subsidized school meal programs, and if that option is unavailable, get their meals and snacks reimbursed through Washington's Child Adult Care Food Program. Meanwhile, the churches themselves are encouraged to serve as feeding sites for the Summer Food Service Program, among other government-funded social welfare programs. In sum, religion and "improved childhood nutrition" are being twisted into bloating the deficit while building habits of dependency. This "faith-based" initiative is nothing more than re-packaging the infamous late 1960s Cloward-Piven strategy of sharply expanding the welfare rolls to bankrupt government so as to usher in socialism.
No doubt, these particular state-expanding programs will soon expire from fiscal starvation and, hopefully, a regime change. Nevertheless, it is critical to sound the clarion call about what's occurring, sometimes almost invisibly, deep within the Obama administration. This is more than fiscal wastefulness or inept policy-making; these programs are deeply antithetical to limited government and individualism and thus deserve an appellation not lightly applied in today's policy debates -- they are evil.
SOURCE (See the original for links)
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ELSEWHERE
Does economic growth reduce poverty?: "It’s quite misleading to claim that Irish economic growth didn’t reduce poverty. The OECD uses a relative definition of poverty -- the 'percentage of persons living with less than 50% of median equivalised household income.' Poor people in Ireland (and Belgium) are a lot less poor than they were thirty years ago with regard to the options they have available to them. The gap between them and the rich might be wider, but this matters less to most people than their life expectancies, economic security levels, and other absolute values."
Ending farm welfare as we know it: "Just about everything in Wisconsin Rep. Paul Ryan's budget blueprint has caught unshirted hell from critics: the tax rates, the Medicare vouchers, the safety-net cuts. The one thing that hasn't? The cuts to farm subsidies. If past is prologue, that means the subsidies are probably safe."
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
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Thursday, April 21, 2011
Wednesday, April 20, 2011
Obama's agenda of hate
Barack Obama’s budget address last week ranks among the most dishonest and dishonorable presidential speeches in generations. It contained an avalanche of false and misleading statements. It was shallow and bitterly partisan. Yet the speech served a useful purpose: It provided the American people in general, and Republicans in particular, with the basic line of attack President Obama will use between now and the 2012 election.
The White House strategy is clear: argue that Obama wants to restore fiscal balance by raising taxes on “millionaires and billionaires” while those who don’t favor higher taxes on the wealthy are fundamentally unserious. As a political matter, of course, class warfare does not have a particularly successful track record. But, to keep it that way, Republicans need to provide a compelling response to the Obama strategy. Fortunately such a response exists.
Obama’s argument is built on sand. A tax increase on the wealthy would fall far short of the revenues needed to reverse our fiscal trajectory. Our budget problems are significantly worse today than they were in the 1990s. There are not nearly enough wealthy people in the nation to tax in order to tame our debt. If the president wants higher taxes to improve our fiscal imbalance, he will need to embrace a massive middle-class tax increase and/or a value added tax (VAT). But Obama hasn’t shown the slightest preference for that option. It’s pure fiction to pretend that higher taxes on those making more than $200,000 will make much of a dent in our debt, given the size of our long-term spending problem. Obama’s argument isn’t with Republicans. It’s with basic arithmetic.
Republicans need to unmask the philosophy guiding modern liberalism when it comes to taxes. What liberals are interested in isn’t growth so much as egalitarianism and redistribution for its own sake. For many on the left, increasing taxes isn’t about economics as much as morality. They believe taxing the wealthy is a virtue, to the point that they would penalize “the rich” even if that has harmful economic consequences. Recall that during a campaign debate, when asked by Charles Gibson about his support for raising capital gains taxes even if that caused a net revenue loss to the Treasury, Obama sided with tax increases “for purposes of fairness.”
Higher taxes would keep our current welfare state in place for only a little while longer. The entitlement apparatus would remain unsustainable. Tax increases might slightly delay, but could not forestall, a fiscal crack-up. The only thing that can is reconfiguring and restructuring our entitlement programs, most especially Medicare. That is what Paul Ryan’s plan does—and what President Obama’s budget avoids doing.
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin.
It is important for Republicans to put this debate in the right frame. Left unaddressed, our crushing burden of debt will cripple the American economy. Yet the aim of conservatism isn’t simply lower deficits and debt. It’s also limited government and a thriving society. A leviathan state is injurious because of its effect on civic character, because it undermines self-reliance and creates dependency. And this, in turn, results in an enervation of the entrepreneurial spirit that is necessary for innovation and prosperity.
Barack Obama has amassed a dismal economic record as president. (Former senator Phil Gramm points out that if Barack Obama had matched Ronald Reagan’s post-recession recovery rate, 15.7 million more Americans would have jobs.) Obama can’t campaign on his record—so he’s betting his reelection chances on stoking embers of anger and resentment. That’s about all that’s left of hope and change.
SOURCE
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Some more food for thought for The Donald
According to the typical liberal media narrative, those of us who have questioned President Obama's life documents are kooks. Nuts. Creeps. "Birthers." When Donald Trump raises issues with the birth certificate, members of the left, right, and center assume that he's doing so for political reasons and that there's no real story. They use the Old Jedi Mind Trick: "nothing to see here ... move along."
There's only one problem. There's something to see here.
There has been an enormous amount of misinformation with regard to Obama's life documents from well-meaning grassroots activists (some of whom are too trusting or inexperienced to know how to vet information properly) to media personalities (who are often sloppy and/or ignorant of the facts involved) to agenda-driven snake oil salesmen (who are using grassroots ire to fundraise or sell their books) to outright disinformation supplied by the Obama Administration itself. But just because there are many people who confuse the life documents issue doesn't mean there isn't one.
In fact, there are two.
For over two years, I have been privy to private investigators' files, have seen private investigations of other private investigations, have done my own research -- and I know beyond a shadow of a doubt that there are two crucial problems with President Obama's life documents. First, the registration number on Obama's "Certification of Live Birth" (which, as Trump recently explained to an incredulous Meredith Vieira, is not a long form birth certificate) is out of sequence to other birth certificates issued on the very next day in Hawaii to a pair of twins named Nordyke (certifications of live birth and birth certificates carry the same registration number).
Second, according to a private investigator, Susan Daniels, whose work was validated by at least two other investigators I'm aware of, the Social Security number that Obama used for approximately 25 years was issued with a Connecticut-based number, though neither Obama nor anyone in his family lived in that state at any point during their lifetimes. Bill O'Reilly claimed on his April 14, 2011, show that Obama's father, Barack Obama Sr., lived in Connecticut "for several years", but when I called O'Reilly for verification of his source(s), I was put into a voicemail and received no return call. As of this writing, it appears that O'Reilly's Mailbag Segment on Obama's Social Security number has been scrubbed by Fox News from the podcast of the show, along with some viewer mail on the subject.
Contrary to Mr. O'Reilly's claim and according to private investigations, after Obama Sr. left Hawaii, he lived in Cambridge, Mass, which he left for Africa in 1965. Obama Sr. never worked or took classes in Connecticut, and no one has ever proven or even given a reason for his living in that state. We know that 1977-79 was the period when Obama's Connecticut-based Social Security number was issued because private investigators have tracked down the dates when the Social Security numbers directly above and below Obama's number were issued. Both of these numbers were issued to Connecticut residents. But from 1972 until his death in a car crash in 1982, Barack Obama Sr. was in Kenya. During this period he was never in America. We reach this conclusion because Obama Sr.'s addresses have been tracked and can be seen in several private investigator data bases.
So it appears Obama Sr. had nothing to do with the application for Obama's Social Security number, as Mr. O'Reilly suggested. But then again, this is the same O'Reilly who also announced on his April 14th show that, although Obama's birth certificate has not been made public, Hawaii officials have it on file. This about-face conflicts with his 2008 statement that he'd actually seen the birth certificate and that's how he knows Obama is legitimate. "We have a copy of it," he said at the time. (NB: such a possession would have been illegal.)
Not only have these issues been ignored or derided by the press, any attempt to answer these questions has been stymied at the state level. Obscured by countless charges and counter-charges, and under the cover of stealth legislation, Hawaii has changed the law and the language with regard to the release of birth certificates, making it very difficult if not impossible to establish the veracity of any charges with regard to Obama's. One can only surmise that if fraud has indeed occurred, a cover-up of that fraud was the goal -- and accomplishment -- here.
But we need not allow state governments, or anyone, to cover up the Obama birth certificate conundrum. There is something we can do. We can ask states to adopt legislation that requires candidates to make public their long form birth certificates in order to be placed on the presidential ballot, and in accordance with Article 2, Section 1 of the Constitution. Arizona has already attempted something along these lines, but Arizona's law doesn't go far enough: it permits forensics testing only on secondary documents -- which is to say, if a long form birth certificate is not submitted, there will be no forensics testing on it. Instead, states must pass bills requiring forensics testing of any and all life documents submitted to them, if questions arise about them.
In order to push for such legislation, we all must shift into second gear. Instead of asking "where is the birth certificate?," we must now demand that whatever documents are released on a candidate's life, such documents must be subjected to forensic testing. Anyone who's concealed his documents (and hired lawyers to fight efforts in court to reveal his place of birth), as Mr. Obama has, appears not trustworthy; his actions alone demand forensics testing for any document he produces as proof of his "natural born" status. As Ronald Reagan famously put it, "Trust, but verify."
To date, no such total verification has taken place and thus secrets remain hidden. Instead, sloppy reporting and careless statements, including one made by the Republican National Committee (whom I also called to verify their sources and have received no return call), have been based on second-hand reporting rather than on investigative fact checking. And Obama has something to hide. If he didn't, Obama's attorney, Bob Bauer, would not be sending bullying letters to other attorneys promising sanctions, court costs, etc., if the birth certificate case were pursued against them (see threatening letter here). Obama wouldn't be spending money to defend against these lawsuits if there were no problems -- he'd be releasing his documentation pronto. For his trouble, Bob Bauer has been promoted to White House Counsel. Clearly, Obama's life documents -- which remain sealed from public view -- pose a problem for him, and the behavior of his inner circle proves it.
This is something that Mr. Trump seems to know instinctively. He has been unafraid in his pursuit of Obama's birth certificate. He has suggested an investigation of Hawaiian Governor Neil Abercrombie, who brashly promised that he would release Obama's birth certificate when he took office, only to say -- after having dug into the birth records -- that he didn't know he wasn't allowed to release such a thing. After Mr. Trump's perfectly reasonable suggestion, Abercrombie has been quiet.
Trump has stated that he has investigators on the ground in Hawaii checking on the birth certificate firsthand, and has stated that they "can't believe" what they are finding. Trump may understand that deception has already occurred here -- when Obama released his "Certification of Live Birth" in 2007 as if it were a valid birth certificate, it appears he meant to deceive the public. Trump's refusal to back off the birth certificate issue has the elites frowning, the base in an uproar, and Obama on his heels.
Meanwhile, the Republican establishment continues to shrink from the once-in-a-lifetime political opportunity Obama has handed them by his concealments. Frightened to attack Obama's "character," they instead insist on attacking his policies -- the same failed strategy that McCain (and they) have already tried. The Obama campaign and presidency, day after day, assassinated Bush's character (and now others) and lied continually, full of guile, about Obama's policies and political beliefs at the same time, and they continue this practice even today.
Why? Because it's effective. The vast majority of Americans already agree with Republicans on the major issues -- health care, "don't ask, don't tell," the stimulus package, the deficit -- policy arguments which Republicans have lost to Obama because they refuse to pull out the big guns. Were the Democrats thinking about beating Nixon on policy when they went after him on Watergate? The Republicans seem willing to allow Obama to waltz to a second term, unchallenged in this terribly important Constitutional issue, and Americans care deeply about their Constitution, simply out of spinelessness.
Trump has a spine, which is why he is gaining momentum and has pulled way ahead of the pack. Now we must convert that momentum into action. Instead of passing judgment about who is crazy or sane on the issues of the birth certificate and the Social Security number, we must ask Obama to show his hand, and we then must forensically test whatever he has, or he must fold. Forensics testing is not an outlandish idea; as distasteful as this analogy might be -- a sordid affair vs. a serious Constitutional issue -- forensics testing of a blue dress a few years ago revealed another set of lies of a young U.S. president, also attempting to defraud the public.
Because of the irregularities and unanswered questions outlined above, certainly the American people have a right to know whether the birth record that supposedly establishes the eligibility of their president is un-tampered with. And they also have a right to know whether the social security number that he has been using is genuinely his or stolen. Use of another person's social security number is a felony.
In the interests of full transparency and disclosure, in the interests of protecting the Constitution and the integrity of our elections, we need to force Obama and all other presidential candidates to show us their birth certificates before they join any presidential campaign and demonstrate they are eligible to serve us. Anything less is a deep betrayal of our most basic democratic ideals.
SOURCE
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ELSEWHERE
Hungary: Pols okay conservative constitution: "Hungarian lawmakers approved a socially and fiscally conservative new constitution yesterday that was blasted by rights groups and the political opposition for measures including a ban on gay marriage and protection of the life of a fetus from conception. Conservative Prime Minister Viktor Orban says the constitution will allow the former communist country to complete a transition to democracy and move to an era of sound finances and clean government after years of mismanagement"
Why we must freeze the debt limit: "A failure to increase the debt limit now would just create an ersatz 'crisis.' For too long, analysts and politicians have balked at the massive political impediments to reforming the federal budget — especially entitlement programs. Many now concede, actually, that no prudential reforms are likely unless there is an imminent 'crisis.' On the other hand, political liberals argue that there is no real 'crisis' — and so no need for real reforms. Well, here's the opportunity for a 'crisis' that 'should not be wasted.'"
Closing social distance: "Along with many of my fellow economists, I am drawn to the study of the nonmarket foundations of the market process. We find that examining the nature and significance of social capital, norms of trust and reciprocity, and conventions of fair play — combined with the traditional concerns of private property, the rule of law, and free trade — greatly improves our understanding of how social cooperation works or doesn’t work."
Welcome budget-cut talk: "Finally. A serious budget plan. House Budget Chairman Paul Ryan's proposal has the head-in-the-sand crowd horrified . A Washington Post columnist called it 'radical ... irresponsible ... extreme.' Ryan's plan offers some great things: less spending than President Obama wants; a path to a balanced budget; repeal of Obamacare; an end to corporate welfare. And it would make the social safety net sustainable rather than open-ended and going broke."
Are we allied to a corpse?: "The Post story about Britain and France, the leading military powers of NATO Europe, depleting their smart-bomb supply in a one-month clash with an African nation of 6 million, and begging the Yanks to come back and win the war for them, raises a major question. Is the most successful alliance in history, which kept the Red Army of Stalin, Khrushchev and Brezhnev from smashing through the Fulda Gap and reaching the Channel, a hollow shell?"
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
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Barack Obama’s budget address last week ranks among the most dishonest and dishonorable presidential speeches in generations. It contained an avalanche of false and misleading statements. It was shallow and bitterly partisan. Yet the speech served a useful purpose: It provided the American people in general, and Republicans in particular, with the basic line of attack President Obama will use between now and the 2012 election.
The White House strategy is clear: argue that Obama wants to restore fiscal balance by raising taxes on “millionaires and billionaires” while those who don’t favor higher taxes on the wealthy are fundamentally unserious. As a political matter, of course, class warfare does not have a particularly successful track record. But, to keep it that way, Republicans need to provide a compelling response to the Obama strategy. Fortunately such a response exists.
Obama’s argument is built on sand. A tax increase on the wealthy would fall far short of the revenues needed to reverse our fiscal trajectory. Our budget problems are significantly worse today than they were in the 1990s. There are not nearly enough wealthy people in the nation to tax in order to tame our debt. If the president wants higher taxes to improve our fiscal imbalance, he will need to embrace a massive middle-class tax increase and/or a value added tax (VAT). But Obama hasn’t shown the slightest preference for that option. It’s pure fiction to pretend that higher taxes on those making more than $200,000 will make much of a dent in our debt, given the size of our long-term spending problem. Obama’s argument isn’t with Republicans. It’s with basic arithmetic.
Republicans need to unmask the philosophy guiding modern liberalism when it comes to taxes. What liberals are interested in isn’t growth so much as egalitarianism and redistribution for its own sake. For many on the left, increasing taxes isn’t about economics as much as morality. They believe taxing the wealthy is a virtue, to the point that they would penalize “the rich” even if that has harmful economic consequences. Recall that during a campaign debate, when asked by Charles Gibson about his support for raising capital gains taxes even if that caused a net revenue loss to the Treasury, Obama sided with tax increases “for purposes of fairness.”
Higher taxes would keep our current welfare state in place for only a little while longer. The entitlement apparatus would remain unsustainable. Tax increases might slightly delay, but could not forestall, a fiscal crack-up. The only thing that can is reconfiguring and restructuring our entitlement programs, most especially Medicare. That is what Paul Ryan’s plan does—and what President Obama’s budget avoids doing.
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin.
It is important for Republicans to put this debate in the right frame. Left unaddressed, our crushing burden of debt will cripple the American economy. Yet the aim of conservatism isn’t simply lower deficits and debt. It’s also limited government and a thriving society. A leviathan state is injurious because of its effect on civic character, because it undermines self-reliance and creates dependency. And this, in turn, results in an enervation of the entrepreneurial spirit that is necessary for innovation and prosperity.
Barack Obama has amassed a dismal economic record as president. (Former senator Phil Gramm points out that if Barack Obama had matched Ronald Reagan’s post-recession recovery rate, 15.7 million more Americans would have jobs.) Obama can’t campaign on his record—so he’s betting his reelection chances on stoking embers of anger and resentment. That’s about all that’s left of hope and change.
SOURCE
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Some more food for thought for The Donald
According to the typical liberal media narrative, those of us who have questioned President Obama's life documents are kooks. Nuts. Creeps. "Birthers." When Donald Trump raises issues with the birth certificate, members of the left, right, and center assume that he's doing so for political reasons and that there's no real story. They use the Old Jedi Mind Trick: "nothing to see here ... move along."
There's only one problem. There's something to see here.
There has been an enormous amount of misinformation with regard to Obama's life documents from well-meaning grassroots activists (some of whom are too trusting or inexperienced to know how to vet information properly) to media personalities (who are often sloppy and/or ignorant of the facts involved) to agenda-driven snake oil salesmen (who are using grassroots ire to fundraise or sell their books) to outright disinformation supplied by the Obama Administration itself. But just because there are many people who confuse the life documents issue doesn't mean there isn't one.
In fact, there are two.
For over two years, I have been privy to private investigators' files, have seen private investigations of other private investigations, have done my own research -- and I know beyond a shadow of a doubt that there are two crucial problems with President Obama's life documents. First, the registration number on Obama's "Certification of Live Birth" (which, as Trump recently explained to an incredulous Meredith Vieira, is not a long form birth certificate) is out of sequence to other birth certificates issued on the very next day in Hawaii to a pair of twins named Nordyke (certifications of live birth and birth certificates carry the same registration number).
Second, according to a private investigator, Susan Daniels, whose work was validated by at least two other investigators I'm aware of, the Social Security number that Obama used for approximately 25 years was issued with a Connecticut-based number, though neither Obama nor anyone in his family lived in that state at any point during their lifetimes. Bill O'Reilly claimed on his April 14, 2011, show that Obama's father, Barack Obama Sr., lived in Connecticut "for several years", but when I called O'Reilly for verification of his source(s), I was put into a voicemail and received no return call. As of this writing, it appears that O'Reilly's Mailbag Segment on Obama's Social Security number has been scrubbed by Fox News from the podcast of the show, along with some viewer mail on the subject.
Contrary to Mr. O'Reilly's claim and according to private investigations, after Obama Sr. left Hawaii, he lived in Cambridge, Mass, which he left for Africa in 1965. Obama Sr. never worked or took classes in Connecticut, and no one has ever proven or even given a reason for his living in that state. We know that 1977-79 was the period when Obama's Connecticut-based Social Security number was issued because private investigators have tracked down the dates when the Social Security numbers directly above and below Obama's number were issued. Both of these numbers were issued to Connecticut residents. But from 1972 until his death in a car crash in 1982, Barack Obama Sr. was in Kenya. During this period he was never in America. We reach this conclusion because Obama Sr.'s addresses have been tracked and can be seen in several private investigator data bases.
So it appears Obama Sr. had nothing to do with the application for Obama's Social Security number, as Mr. O'Reilly suggested. But then again, this is the same O'Reilly who also announced on his April 14th show that, although Obama's birth certificate has not been made public, Hawaii officials have it on file. This about-face conflicts with his 2008 statement that he'd actually seen the birth certificate and that's how he knows Obama is legitimate. "We have a copy of it," he said at the time. (NB: such a possession would have been illegal.)
Not only have these issues been ignored or derided by the press, any attempt to answer these questions has been stymied at the state level. Obscured by countless charges and counter-charges, and under the cover of stealth legislation, Hawaii has changed the law and the language with regard to the release of birth certificates, making it very difficult if not impossible to establish the veracity of any charges with regard to Obama's. One can only surmise that if fraud has indeed occurred, a cover-up of that fraud was the goal -- and accomplishment -- here.
But we need not allow state governments, or anyone, to cover up the Obama birth certificate conundrum. There is something we can do. We can ask states to adopt legislation that requires candidates to make public their long form birth certificates in order to be placed on the presidential ballot, and in accordance with Article 2, Section 1 of the Constitution. Arizona has already attempted something along these lines, but Arizona's law doesn't go far enough: it permits forensics testing only on secondary documents -- which is to say, if a long form birth certificate is not submitted, there will be no forensics testing on it. Instead, states must pass bills requiring forensics testing of any and all life documents submitted to them, if questions arise about them.
In order to push for such legislation, we all must shift into second gear. Instead of asking "where is the birth certificate?," we must now demand that whatever documents are released on a candidate's life, such documents must be subjected to forensic testing. Anyone who's concealed his documents (and hired lawyers to fight efforts in court to reveal his place of birth), as Mr. Obama has, appears not trustworthy; his actions alone demand forensics testing for any document he produces as proof of his "natural born" status. As Ronald Reagan famously put it, "Trust, but verify."
To date, no such total verification has taken place and thus secrets remain hidden. Instead, sloppy reporting and careless statements, including one made by the Republican National Committee (whom I also called to verify their sources and have received no return call), have been based on second-hand reporting rather than on investigative fact checking. And Obama has something to hide. If he didn't, Obama's attorney, Bob Bauer, would not be sending bullying letters to other attorneys promising sanctions, court costs, etc., if the birth certificate case were pursued against them (see threatening letter here). Obama wouldn't be spending money to defend against these lawsuits if there were no problems -- he'd be releasing his documentation pronto. For his trouble, Bob Bauer has been promoted to White House Counsel. Clearly, Obama's life documents -- which remain sealed from public view -- pose a problem for him, and the behavior of his inner circle proves it.
This is something that Mr. Trump seems to know instinctively. He has been unafraid in his pursuit of Obama's birth certificate. He has suggested an investigation of Hawaiian Governor Neil Abercrombie, who brashly promised that he would release Obama's birth certificate when he took office, only to say -- after having dug into the birth records -- that he didn't know he wasn't allowed to release such a thing. After Mr. Trump's perfectly reasonable suggestion, Abercrombie has been quiet.
Trump has stated that he has investigators on the ground in Hawaii checking on the birth certificate firsthand, and has stated that they "can't believe" what they are finding. Trump may understand that deception has already occurred here -- when Obama released his "Certification of Live Birth" in 2007 as if it were a valid birth certificate, it appears he meant to deceive the public. Trump's refusal to back off the birth certificate issue has the elites frowning, the base in an uproar, and Obama on his heels.
Meanwhile, the Republican establishment continues to shrink from the once-in-a-lifetime political opportunity Obama has handed them by his concealments. Frightened to attack Obama's "character," they instead insist on attacking his policies -- the same failed strategy that McCain (and they) have already tried. The Obama campaign and presidency, day after day, assassinated Bush's character (and now others) and lied continually, full of guile, about Obama's policies and political beliefs at the same time, and they continue this practice even today.
Why? Because it's effective. The vast majority of Americans already agree with Republicans on the major issues -- health care, "don't ask, don't tell," the stimulus package, the deficit -- policy arguments which Republicans have lost to Obama because they refuse to pull out the big guns. Were the Democrats thinking about beating Nixon on policy when they went after him on Watergate? The Republicans seem willing to allow Obama to waltz to a second term, unchallenged in this terribly important Constitutional issue, and Americans care deeply about their Constitution, simply out of spinelessness.
Trump has a spine, which is why he is gaining momentum and has pulled way ahead of the pack. Now we must convert that momentum into action. Instead of passing judgment about who is crazy or sane on the issues of the birth certificate and the Social Security number, we must ask Obama to show his hand, and we then must forensically test whatever he has, or he must fold. Forensics testing is not an outlandish idea; as distasteful as this analogy might be -- a sordid affair vs. a serious Constitutional issue -- forensics testing of a blue dress a few years ago revealed another set of lies of a young U.S. president, also attempting to defraud the public.
Because of the irregularities and unanswered questions outlined above, certainly the American people have a right to know whether the birth record that supposedly establishes the eligibility of their president is un-tampered with. And they also have a right to know whether the social security number that he has been using is genuinely his or stolen. Use of another person's social security number is a felony.
In the interests of full transparency and disclosure, in the interests of protecting the Constitution and the integrity of our elections, we need to force Obama and all other presidential candidates to show us their birth certificates before they join any presidential campaign and demonstrate they are eligible to serve us. Anything less is a deep betrayal of our most basic democratic ideals.
SOURCE
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ELSEWHERE
Hungary: Pols okay conservative constitution: "Hungarian lawmakers approved a socially and fiscally conservative new constitution yesterday that was blasted by rights groups and the political opposition for measures including a ban on gay marriage and protection of the life of a fetus from conception. Conservative Prime Minister Viktor Orban says the constitution will allow the former communist country to complete a transition to democracy and move to an era of sound finances and clean government after years of mismanagement"
Why we must freeze the debt limit: "A failure to increase the debt limit now would just create an ersatz 'crisis.' For too long, analysts and politicians have balked at the massive political impediments to reforming the federal budget — especially entitlement programs. Many now concede, actually, that no prudential reforms are likely unless there is an imminent 'crisis.' On the other hand, political liberals argue that there is no real 'crisis' — and so no need for real reforms. Well, here's the opportunity for a 'crisis' that 'should not be wasted.'"
Closing social distance: "Along with many of my fellow economists, I am drawn to the study of the nonmarket foundations of the market process. We find that examining the nature and significance of social capital, norms of trust and reciprocity, and conventions of fair play — combined with the traditional concerns of private property, the rule of law, and free trade — greatly improves our understanding of how social cooperation works or doesn’t work."
Welcome budget-cut talk: "Finally. A serious budget plan. House Budget Chairman Paul Ryan's proposal has the head-in-the-sand crowd horrified . A Washington Post columnist called it 'radical ... irresponsible ... extreme.' Ryan's plan offers some great things: less spending than President Obama wants; a path to a balanced budget; repeal of Obamacare; an end to corporate welfare. And it would make the social safety net sustainable rather than open-ended and going broke."
Are we allied to a corpse?: "The Post story about Britain and France, the leading military powers of NATO Europe, depleting their smart-bomb supply in a one-month clash with an African nation of 6 million, and begging the Yanks to come back and win the war for them, raises a major question. Is the most successful alliance in history, which kept the Red Army of Stalin, Khrushchev and Brezhnev from smashing through the Fulda Gap and reaching the Channel, a hollow shell?"
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
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Tuesday, April 19, 2011
The debt debacle and the destruction of U.S. dollar savings now underway
A near-worthless dollar is a real possibility -- unless drastic steps are taken
Martin Hutchinson comments:
Fiscally, it is now clear that the United States’ record has been uniquely profligate. According to IMF figures, the U.S. bank bailout has cost only 3.4% of GDP, compared with Germany’s 10.7% of GDP, yet the U.S. budget deficit for calendar 2011 is estimated at 10.9% of GDP compared to Germany’s 2.3%. (Given that the principal asset problem lay in U.S. housing, and that Germany had no comparable housing bubble, it can also be concluded that German banks were uniquely stupid!)
Outside the Civil War and World War II, the United States has never run deficits of anything like this size. The 1979-82 recession was comparable to this one in length and severity, yet the budget deficit peaked at 6.3% of GDP in 1983, by which time the U.S. economy was growing rapidly.
U.S. monetary policy has however been even more extreme than fiscal policy. The zero Federal Funds rate, prolonged now for 2½ years, is not as negative in real terms as short term rates became on a number of occasions in the 1970s. Yet the psychological effect of a zero nominal interest rate is incalculable. It prevents savers from receiving any return on their money, unlike in the 1970s when their nominal returns were quite substantial.
You can argue all you like that the more negative real returns of the 1970s represented easier money, yet the effect on savers of receiving no return on their savings, or on borrowers of having to pay almost nothing for their money is huge. Savings are depressed as simple folk give up altogether...
The effects of ultra-easy money are everywhere. Notoriously, it has reduced the U.S. savings rate close to zero, while shrinking capital cost differentials between the U.S. and emerging markets, thus effectively de-capitalizing the U.S. economy.
At this point, it is becoming clear that the period of “debt deflation” which Reinhart and Rogoff forecast would be needed before the U.S. and global economies could expand again on a healthy basis has been nothing of the kind.
Rather than deflation, we are currently experiencing a rapid increase in inflation. Each month’s statistics show an acceleration in the pace of inflation. Producer prices have been increasing at an annual rate of 10.9% over the last six months, which suggests pretty strongly that we shall soon see a similar rate of increase in consumer price statistics. However this time, unlike in the gentlemanly 1970s, the excessive expansionism of fiscal and monetary policy will prevent inflation from being halted at or just above the 10% level, but will instead produce inflation rates much higher than that.
In today’s world economy, the losers from an unexpected burst of inflation are not primarily the banks – fortunately for the world’s taxpayers, who would have to bail them out again. Instead the losers are the major investors in dollar debt – hedge funds, Middle Eastern potentates and Asian central banks. There could not be an economically less damaging collection of losers – except that Middle Eastern and Asian losers who have been scammed through wild dollar inflation and currency depreciation will find some doubtless unpleasant way of obtaining their revenge.
The blissful phase in which interest rates in the U.S. and elsewhere are far below the inflation rate will not however be long-lived, although doubtless a desperate Bernanke and his hangers-on will try and prolong it as far as possible. At some point, probably around the time reported inflation passes 20% per annum, the Treasury bond markets, the politicians and the public as a whole will panic, seeing the possibility of a Weimar-style collapse.
If this happens at an inconvenient point in the 2012 electoral cycle (or if the present incumbents are encouraged by unexpected electoral victory) little will be done and hyperinflation will set in. That would solve the debt problem, all right, but wipe out the U.S. capital base altogether.
Since the United States is, like Australia, a lucky country, it is however more probable than not that steps will be taken to avoid this ghastly fate. They will involve a Federal Funds rate that is far above the rapidly accelerating level of inflation – say 50% -- and long-term bond rates also above the inflation rate, at about 25% or so. Any benefit the U.S. government and individual borrowers had gained from the preceding inflation would be quickly wiped out, except for those thrifty souls who had prudently taken out fixed rate mortgages.
The U.S. government would be forced to cut back spending not by a third, as is currently necessary, but by more than half, financing the remaining deficit offshore in yen, renminbi and Singapore dollars, the currencies of the thrifty and provident Asians. The squeals of the electorate subjected to this usurious brutality would be deafening, but they would be drowned fairly quickly by the roar of job creation, as desperate companies scrambled to sell their cripplingly costly capital assets and reinvest in suddenly cheaper labor.
In the long run, the United States will probably arrive at the place predicted by Reinhart and Rogoff: a long-delayed recovery, with living standards depressed by the costs of eliminating debt. However it will have chosen a bizarre and excessively painful way of getting there.
More HERE
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Righteous Indignation: Andrew Breitbart is out to save the world (and he just might)
You won’t find too many people who are indifferent toward Andrew Breitbart. But love him or hate him, you can’t ignore him. With his ever-growing collection of “Big” websites (Big Government, Big Hollywood, Big Journalism and Big Peace so far), Andrew has redefined how the political right views and uses the Internet. He makes no apologies for his “in your face” style, nor should he. That style has won him many victories and many enemies. He seems to occupy the time of a disproportionate number of left-wingers, including many employees of the ultra-left-wing censorship factory called Media Matters. Those “senior fellows” are about to have their weekends ruined as Breitbart moves from the virtual world to the book world with today’s release of Righteous Indignation: Excuse Me While I Save the World (2011 Grand Central Publishing).
Righteous is three books in one, each self-contained. Together, they weave a narrative that will remind many readers of their own lives. Even if you don’t share all of Andrew’s political beliefs, you will find yourself identifying with at least some of his story and conclusions. The book is part biography, part history lesson, and part manifesto, and it flows with clarity of purpose from one page to the next. It subtly draws you into a narrative, strung through the whole book, where he meticulously makes the case against the media and pop culture, which, he argues, help spread and normalize the liberal agenda. He also explains how to combat that agenda.
The first third of the book reads like a biography, but with a purpose. He writes about his first foray into the Internet, a place that would eventually become his home, in a way most of us who were late adapters missed. He touches on his discovery of Matt Drudge and his working relationship with a then-conservative firebrand named Arianna Huffington. But “touches” is the right word — both of those relationships deserve a book of their own, but he has a different purpose in Righteous, and he doesn’t get distracted from it.
The second part of the book is a history lesson on the progressive/liberal movement in America. It’s not nearly as detailed as Jonah Goldberg’s amazing Liberal Fascism, but it doesn’t need to be, and doesn’t aspire to be. This isn’t a history book; it has a different mission.
Nevertheless, this section plainly and calmly lays out the basic facts of how the progressive left-wing agenda first came to these shores with the help of many establishment people such as the vaunted Edward R. Murrow. Breitbart tells the history of how the Frankfurt School spread their radical ideals throughout the country.
But Andrew’s real praise is reserved for radical Saul Alinsky. Breitbart loathes Alinsky’s ends, but the genius of his means is hard to dispute. The story of how this Chicago radical took the dry teachings of the Frankfurt School elites and sold it to the masses is often told as a cautionary tale, but Breitbart sees it as an opportunity, which leads perfectly to the final third of the book.
The last part of the book reads like a manifesto, a call to arms. So much of establishment Washington, and more specifically the conservative movement, is predicated on niceties. This “go along to get along” is perfect if all you want to do is get along. Andrew Breitbart does not want to get along, he wants to win.
The manifesto section stops short of inspiring the reader to pick up a pitchfork and a torch, but just barely. What it does do is inspire those of us who have been afraid to speak out about our deeply held beliefs for fear of rejection or attack. Breitbart lays it on the table. “It is not just a political war, it is a cultural war, and our audacious goal is to change the big narrative,” he writes.
Righteous isn’t meant to simply inform; it’s meant to inspire. Andrew tells the story of his first appearance on “Real Time with Bill Maher.” He thought he’d done well, until he started to hear from friends who wondered why he hadn’t stood up for his beliefs. He was much more assertive the next time he appeared on Maher’s show. Passivity only leads to appeasement. Sharp elbows are needed if victory is truly your goal.
Of all the things Righteous Indignation does, perhaps its most important function is to pull back the curtain on the unholy alliance between all the cultural and media institutions and the left-wing industrial complex and expose how they fit together like puzzle pieces to advance an agenda. If you trusted the media or the entertainment industry before reading this book, your eyes will be opened. If you didn’t, you will know you are not alone.
More HERE
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Sarah Palin rocks Madison
She was feisty. She was bold. And she was gutsy. At a Tea Party rally in Madison, Wis., on Saturday, Sarah Palin pulled no punches.
The former Alaska governor and 2008 vice-presidential candidate credited the Tea Party with winning “an electoral victory of historic proportions last November.” She praised Scott Walker’s efforts toward fiscal discipline. She stood up to the GOP establishment. And she had a strong message for Barack Obama as we approach 2012: “Mr. President, game on!”
Palin, who stems from “a family of schoolteachers,” reached out to Wisconsin’s union members: “I’m here today as a patriot, as a taxpayer, as a former union member, and as the wife of a union member … A pension is a promise that must be kept. Now your Governor, Scott Walker, understands this. He understands that states must be solvent in order to keep their promises. And that’s what he’s trying to do. He’s not trying to hurt union members. Hey, folks — he’s trying to save your jobs and your pensions.”
She talked tough with respect to the watered-down budget compromise reached by President Obama, John Boehner, and Harry Reid, affirming, “That is not courage. That’s capitulation.” She added, “Now there is a lesson here — in the Beltway politico, something that they need to understand — the lesson comes from here in Madison. So, our lesson is to the GOP establishment first … if you stand on the platform, if you stand by your pledges, we will stand with you. We will fight with you, GOP. We have your back. Together we will win because America will win.”
“We didn’t elect you just to re-arrange the deck chairs on a sinking Titanic,” Palin continued. “We didn’t elect you just to stand back and watch Obama redistribute those deck chairs. What we need is for you to stand up, GOP, and fight.” She added, “Maybe I should ask some of the Badger women’s hockey team — those champions — maybe I should ask them if we should be suggesting to GOP leaders, they need to learn how to fight like a girl!”
Palin called out President Obama on his unsuccessful stimulus, big-government promoting SOTU address, and proclivity toward ignoring the will of the people via Obamacare, reckless spending, and proposals for tax increases on the middle class and job creators. She challenged his tendency to “apologize for America while you bow and kowtow to our enemies and you snub our allies like Israel,” as well as the manner in which “you [Barack Obama] cut off oil development here and then you hypocritically praise foreign countries for their drilling.”
“We the people, we rose up, and we decisively rejected the Left’s big-government agenda,” Palin asserted. “We don’t want it. We can’t afford it. And we are unwilling to pay for it.”
Palin’s distinctive humor emerged through such statements as “We’re flat broke, but he [Barack Obama] thinks these solar shingles and really fast trains will magically save us” and “Win the Future? WTF is about right.”
More HERE
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ELSEWHERE
Debt agency cuts US outlook to “negative”: "The Standard & Poor’s credit rating service Monday downgraded the U.S. sovereign long-term national debt from 'stable' to 'negative,' citing the failure of Congress to agree on a plan to 'reverse recent fiscal deterioration or address longer-term fiscal pressures.'"
NATO short on bombs, planes for Libya war: "Less than a month into the Libyan conflict, NATO is running short of precision bombs, highlighting the limitations of Britain, France and other European countries in sustaining even a relatively small military action over an extended period of time, according to senior NATO and U.S. officials. The shortage of European munitions, along with the limited number of aircraft available, has raised doubts among some officials about whether the United States can continue to avoid returning to the air campaign if Libyan leader Moammar Gadhafi hangs onto power for several more months."
Finland: Election could derail bailouts in Europe: "A huge surge in support for a Finnish nationalist party that opposes eurozone bailouts is complicating Europe’s plans to rescue Portugal and other debt-ridden economies. The sharp rise of the True Finns in Sunday’s nation election represents a watershed moment in Finnish politics, which have traditionally been dominated by the Social Democrats, the Center Party and the conservative National Coalition party."
TSA security looks at people who complain about … TSA security: "Arrogant complaining about airport security is one indicator TSA officers consider when looking for possible criminals and terrorists,when combined with other behavioral indicators, it could result in a traveler facing additional scrutiny."
Ryan’s way is the better way: "Medicare cannot simply continue to promise paying for everything for everyone when it doesn't have the money to do so. The question isn't whether future seniors will have to pay more or get less. It is whether those choices will be imposed on them from above or whether they will be empowered to make those decisions for themselves."
Public safety hypocrisy: "South Carolina is up against an $800 million budget shortage these days. State lawmakers there need to raise more cash. So they cooked up a bright idea to get it from small time speeders, caught driving less than 10 mph over the limits, who want to avoid DMV points on their drivers’ licenses. Here’s how it works: A low-level speeder would be pulled over by the cops and given the option of paying a normal $15 to $25 fine, to be reported to DMV for the assessment of points; or a $150 fine, which is 10 times the current minimum, but no report to the DMV, and no assessment of points."
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
****************************
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
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A near-worthless dollar is a real possibility -- unless drastic steps are taken
Martin Hutchinson comments:
Fiscally, it is now clear that the United States’ record has been uniquely profligate. According to IMF figures, the U.S. bank bailout has cost only 3.4% of GDP, compared with Germany’s 10.7% of GDP, yet the U.S. budget deficit for calendar 2011 is estimated at 10.9% of GDP compared to Germany’s 2.3%. (Given that the principal asset problem lay in U.S. housing, and that Germany had no comparable housing bubble, it can also be concluded that German banks were uniquely stupid!)
Outside the Civil War and World War II, the United States has never run deficits of anything like this size. The 1979-82 recession was comparable to this one in length and severity, yet the budget deficit peaked at 6.3% of GDP in 1983, by which time the U.S. economy was growing rapidly.
U.S. monetary policy has however been even more extreme than fiscal policy. The zero Federal Funds rate, prolonged now for 2½ years, is not as negative in real terms as short term rates became on a number of occasions in the 1970s. Yet the psychological effect of a zero nominal interest rate is incalculable. It prevents savers from receiving any return on their money, unlike in the 1970s when their nominal returns were quite substantial.
You can argue all you like that the more negative real returns of the 1970s represented easier money, yet the effect on savers of receiving no return on their savings, or on borrowers of having to pay almost nothing for their money is huge. Savings are depressed as simple folk give up altogether...
The effects of ultra-easy money are everywhere. Notoriously, it has reduced the U.S. savings rate close to zero, while shrinking capital cost differentials between the U.S. and emerging markets, thus effectively de-capitalizing the U.S. economy.
At this point, it is becoming clear that the period of “debt deflation” which Reinhart and Rogoff forecast would be needed before the U.S. and global economies could expand again on a healthy basis has been nothing of the kind.
Rather than deflation, we are currently experiencing a rapid increase in inflation. Each month’s statistics show an acceleration in the pace of inflation. Producer prices have been increasing at an annual rate of 10.9% over the last six months, which suggests pretty strongly that we shall soon see a similar rate of increase in consumer price statistics. However this time, unlike in the gentlemanly 1970s, the excessive expansionism of fiscal and monetary policy will prevent inflation from being halted at or just above the 10% level, but will instead produce inflation rates much higher than that.
In today’s world economy, the losers from an unexpected burst of inflation are not primarily the banks – fortunately for the world’s taxpayers, who would have to bail them out again. Instead the losers are the major investors in dollar debt – hedge funds, Middle Eastern potentates and Asian central banks. There could not be an economically less damaging collection of losers – except that Middle Eastern and Asian losers who have been scammed through wild dollar inflation and currency depreciation will find some doubtless unpleasant way of obtaining their revenge.
The blissful phase in which interest rates in the U.S. and elsewhere are far below the inflation rate will not however be long-lived, although doubtless a desperate Bernanke and his hangers-on will try and prolong it as far as possible. At some point, probably around the time reported inflation passes 20% per annum, the Treasury bond markets, the politicians and the public as a whole will panic, seeing the possibility of a Weimar-style collapse.
If this happens at an inconvenient point in the 2012 electoral cycle (or if the present incumbents are encouraged by unexpected electoral victory) little will be done and hyperinflation will set in. That would solve the debt problem, all right, but wipe out the U.S. capital base altogether.
Since the United States is, like Australia, a lucky country, it is however more probable than not that steps will be taken to avoid this ghastly fate. They will involve a Federal Funds rate that is far above the rapidly accelerating level of inflation – say 50% -- and long-term bond rates also above the inflation rate, at about 25% or so. Any benefit the U.S. government and individual borrowers had gained from the preceding inflation would be quickly wiped out, except for those thrifty souls who had prudently taken out fixed rate mortgages.
The U.S. government would be forced to cut back spending not by a third, as is currently necessary, but by more than half, financing the remaining deficit offshore in yen, renminbi and Singapore dollars, the currencies of the thrifty and provident Asians. The squeals of the electorate subjected to this usurious brutality would be deafening, but they would be drowned fairly quickly by the roar of job creation, as desperate companies scrambled to sell their cripplingly costly capital assets and reinvest in suddenly cheaper labor.
In the long run, the United States will probably arrive at the place predicted by Reinhart and Rogoff: a long-delayed recovery, with living standards depressed by the costs of eliminating debt. However it will have chosen a bizarre and excessively painful way of getting there.
More HERE
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Righteous Indignation: Andrew Breitbart is out to save the world (and he just might)
You won’t find too many people who are indifferent toward Andrew Breitbart. But love him or hate him, you can’t ignore him. With his ever-growing collection of “Big” websites (Big Government, Big Hollywood, Big Journalism and Big Peace so far), Andrew has redefined how the political right views and uses the Internet. He makes no apologies for his “in your face” style, nor should he. That style has won him many victories and many enemies. He seems to occupy the time of a disproportionate number of left-wingers, including many employees of the ultra-left-wing censorship factory called Media Matters. Those “senior fellows” are about to have their weekends ruined as Breitbart moves from the virtual world to the book world with today’s release of Righteous Indignation: Excuse Me While I Save the World (2011 Grand Central Publishing).
Righteous is three books in one, each self-contained. Together, they weave a narrative that will remind many readers of their own lives. Even if you don’t share all of Andrew’s political beliefs, you will find yourself identifying with at least some of his story and conclusions. The book is part biography, part history lesson, and part manifesto, and it flows with clarity of purpose from one page to the next. It subtly draws you into a narrative, strung through the whole book, where he meticulously makes the case against the media and pop culture, which, he argues, help spread and normalize the liberal agenda. He also explains how to combat that agenda.
The first third of the book reads like a biography, but with a purpose. He writes about his first foray into the Internet, a place that would eventually become his home, in a way most of us who were late adapters missed. He touches on his discovery of Matt Drudge and his working relationship with a then-conservative firebrand named Arianna Huffington. But “touches” is the right word — both of those relationships deserve a book of their own, but he has a different purpose in Righteous, and he doesn’t get distracted from it.
The second part of the book is a history lesson on the progressive/liberal movement in America. It’s not nearly as detailed as Jonah Goldberg’s amazing Liberal Fascism, but it doesn’t need to be, and doesn’t aspire to be. This isn’t a history book; it has a different mission.
Nevertheless, this section plainly and calmly lays out the basic facts of how the progressive left-wing agenda first came to these shores with the help of many establishment people such as the vaunted Edward R. Murrow. Breitbart tells the history of how the Frankfurt School spread their radical ideals throughout the country.
But Andrew’s real praise is reserved for radical Saul Alinsky. Breitbart loathes Alinsky’s ends, but the genius of his means is hard to dispute. The story of how this Chicago radical took the dry teachings of the Frankfurt School elites and sold it to the masses is often told as a cautionary tale, but Breitbart sees it as an opportunity, which leads perfectly to the final third of the book.
The last part of the book reads like a manifesto, a call to arms. So much of establishment Washington, and more specifically the conservative movement, is predicated on niceties. This “go along to get along” is perfect if all you want to do is get along. Andrew Breitbart does not want to get along, he wants to win.
The manifesto section stops short of inspiring the reader to pick up a pitchfork and a torch, but just barely. What it does do is inspire those of us who have been afraid to speak out about our deeply held beliefs for fear of rejection or attack. Breitbart lays it on the table. “It is not just a political war, it is a cultural war, and our audacious goal is to change the big narrative,” he writes.
Righteous isn’t meant to simply inform; it’s meant to inspire. Andrew tells the story of his first appearance on “Real Time with Bill Maher.” He thought he’d done well, until he started to hear from friends who wondered why he hadn’t stood up for his beliefs. He was much more assertive the next time he appeared on Maher’s show. Passivity only leads to appeasement. Sharp elbows are needed if victory is truly your goal.
Of all the things Righteous Indignation does, perhaps its most important function is to pull back the curtain on the unholy alliance between all the cultural and media institutions and the left-wing industrial complex and expose how they fit together like puzzle pieces to advance an agenda. If you trusted the media or the entertainment industry before reading this book, your eyes will be opened. If you didn’t, you will know you are not alone.
More HERE
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Sarah Palin rocks Madison
She was feisty. She was bold. And she was gutsy. At a Tea Party rally in Madison, Wis., on Saturday, Sarah Palin pulled no punches.
The former Alaska governor and 2008 vice-presidential candidate credited the Tea Party with winning “an electoral victory of historic proportions last November.” She praised Scott Walker’s efforts toward fiscal discipline. She stood up to the GOP establishment. And she had a strong message for Barack Obama as we approach 2012: “Mr. President, game on!”
Palin, who stems from “a family of schoolteachers,” reached out to Wisconsin’s union members: “I’m here today as a patriot, as a taxpayer, as a former union member, and as the wife of a union member … A pension is a promise that must be kept. Now your Governor, Scott Walker, understands this. He understands that states must be solvent in order to keep their promises. And that’s what he’s trying to do. He’s not trying to hurt union members. Hey, folks — he’s trying to save your jobs and your pensions.”
She talked tough with respect to the watered-down budget compromise reached by President Obama, John Boehner, and Harry Reid, affirming, “That is not courage. That’s capitulation.” She added, “Now there is a lesson here — in the Beltway politico, something that they need to understand — the lesson comes from here in Madison. So, our lesson is to the GOP establishment first … if you stand on the platform, if you stand by your pledges, we will stand with you. We will fight with you, GOP. We have your back. Together we will win because America will win.”
“We didn’t elect you just to re-arrange the deck chairs on a sinking Titanic,” Palin continued. “We didn’t elect you just to stand back and watch Obama redistribute those deck chairs. What we need is for you to stand up, GOP, and fight.” She added, “Maybe I should ask some of the Badger women’s hockey team — those champions — maybe I should ask them if we should be suggesting to GOP leaders, they need to learn how to fight like a girl!”
Palin called out President Obama on his unsuccessful stimulus, big-government promoting SOTU address, and proclivity toward ignoring the will of the people via Obamacare, reckless spending, and proposals for tax increases on the middle class and job creators. She challenged his tendency to “apologize for America while you bow and kowtow to our enemies and you snub our allies like Israel,” as well as the manner in which “you [Barack Obama] cut off oil development here and then you hypocritically praise foreign countries for their drilling.”
“We the people, we rose up, and we decisively rejected the Left’s big-government agenda,” Palin asserted. “We don’t want it. We can’t afford it. And we are unwilling to pay for it.”
Palin’s distinctive humor emerged through such statements as “We’re flat broke, but he [Barack Obama] thinks these solar shingles and really fast trains will magically save us” and “Win the Future? WTF is about right.”
More HERE
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ELSEWHERE
Debt agency cuts US outlook to “negative”: "The Standard & Poor’s credit rating service Monday downgraded the U.S. sovereign long-term national debt from 'stable' to 'negative,' citing the failure of Congress to agree on a plan to 'reverse recent fiscal deterioration or address longer-term fiscal pressures.'"
NATO short on bombs, planes for Libya war: "Less than a month into the Libyan conflict, NATO is running short of precision bombs, highlighting the limitations of Britain, France and other European countries in sustaining even a relatively small military action over an extended period of time, according to senior NATO and U.S. officials. The shortage of European munitions, along with the limited number of aircraft available, has raised doubts among some officials about whether the United States can continue to avoid returning to the air campaign if Libyan leader Moammar Gadhafi hangs onto power for several more months."
Finland: Election could derail bailouts in Europe: "A huge surge in support for a Finnish nationalist party that opposes eurozone bailouts is complicating Europe’s plans to rescue Portugal and other debt-ridden economies. The sharp rise of the True Finns in Sunday’s nation election represents a watershed moment in Finnish politics, which have traditionally been dominated by the Social Democrats, the Center Party and the conservative National Coalition party."
TSA security looks at people who complain about … TSA security: "Arrogant complaining about airport security is one indicator TSA officers consider when looking for possible criminals and terrorists,when combined with other behavioral indicators, it could result in a traveler facing additional scrutiny."
Ryan’s way is the better way: "Medicare cannot simply continue to promise paying for everything for everyone when it doesn't have the money to do so. The question isn't whether future seniors will have to pay more or get less. It is whether those choices will be imposed on them from above or whether they will be empowered to make those decisions for themselves."
Public safety hypocrisy: "South Carolina is up against an $800 million budget shortage these days. State lawmakers there need to raise more cash. So they cooked up a bright idea to get it from small time speeders, caught driving less than 10 mph over the limits, who want to avoid DMV points on their drivers’ licenses. Here’s how it works: A low-level speeder would be pulled over by the cops and given the option of paying a normal $15 to $25 fine, to be reported to DMV for the assessment of points; or a $150 fine, which is 10 times the current minimum, but no report to the DMV, and no assessment of points."
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
****************************
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
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You can't fix stupid
How stupid is President Barack Hussein Obama? Let me count the ways.
Judging from the philosophical pose he struck during Wednesday's "debt-reduction" address, the president is so stupid as to believe that the "rugged individualism," "self-reliance" and "healthy skepticism of too much government" - all qualities he attributed to the American people in that speech - can survive in the shadow of his government.
During his two years in office, Mr. Obama has accrued more debt than any president in American history. Why, in the month of March alone, his souped-up civil servants spent eight times what they collected in tax receipts and revenues.
For every year their honcho has been in office, the Obama officials have devoured over a trillion dollars, and will put Americans in hock to the tune of $1 trillion in interest payments alone by the end of this decade, if not sooner.
How stupid is our president? So stupid as to believe that the governmental juggernaut over which he presides is what connects us as a nation, and ensures that "we . do together what we cannot do as well for ourselves."
How stupid is Obama? So stupid as to believe that America became a great country in 1935, which is when the earliest of the Medicare, Medicaid and Social Security entitlements was signed into law. Dummy did, after all, declare yesterday that, "We would not be a great country without [these programs]."
How stupid is the president of the United States? So stupid as to think that "the rich" are rich because their "country," by which he means the ruling clique, "has done so much for them," and that they must, therefore, be compelled "to give back a little bit more."
That's like claiming the tick created the dog! Production predates government predation. Government doesn't produce wealth - it only consumes riches created by others, Mr. President.
Besides, the individual is the basic unit of society, without whom there would be no collective. A cleverer man would know that ACORN is the creation of community agitators like himself, not the other way around.
Indeed, backward is our president for reasoning backwards. To wit, if B, then A: if "rich," then exploitative, but if poor, then exploited. That's a bad mistake.
Just how backward is Barack? Such an intellectual laggard is the country's commander in chief as to frame the massive spending he is directing as a "key investment in our future." The wherewithal for the largess exhibited by Mr. Obama's menagerie of moron has been siphoned off from the private economy (and from China).
How studiously dumb is our president? So stupid as to claim that the real "damage . caused to our nation's checkbook," a checking account he controls and we and our Chinese enablers keep in funds, is caused by tax cuts for the rich.
In other words, returning some stolen property ? that's what taxes are ? to its rightful owners is causing America to go under. That, and not the debt our overweening overlords have accumulated in the course of expanding their jurisdiction stateside and overseas.
A note to anyone who is as gormless as the president: Government is doomed to fail because it is bereft of the constraints private property imposes. The more funds funneled into an insolvent system, in which property is communally "owned" - the greater the squandering of these scarce, precious, appropriated resources.
Most of what the government currently does is financed by borrowing. President Obama spoke at length about his "vision for America." But if he must beg or steal to keep his vision alive, then there is something wrong with this "vision," and not with its victims.
But, as Ron White, that great satirist from the great state of Texas, teaches, "You can't fix stupid." "There is not a pill you can take, not a class you can go to. Stupid is forever."
SOURCE
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US budget "showdown"
For all the attempts to talk up the budget clash as a great historical drama, in truth it revealed the pathetic state of American politics. It looked like money for US government agencies would run out at midnight. But an hour before that deadline, congressional leaders and President Obama reached a budget deal that prevented a government shutdown and massive job lay-offs. The compromise cuts about $39 billion from federal spending this year.
Listening to the media coverage, it seemed like a great political drama was taking place. CNN showed a countdown clock, with the minutes ticking away ominously towards the shutdown at midnight. In reality, though, the whole thing was an example of the pathetic state of American politics. The Financial Times was right to refer to the shambolic last-minute deal-making as 'banana republic machinations'.
Despite what the breathless news reporters said, this was not a battle over political principle. Yes, the US federal deficit is large, but this agreement was never intended to put even a small dent in it. Both parties had agreed to reduce spending, and the differences between them towards the end had boiled down to $1 billion or $2 billion, out of a total budget of $3,700 billion.
Following the deal, a beaming Obama said: 'Today, Americans of different beliefs came together.' Based on his enthusiasm, you could be forgiven for thinking that the agreement marked a landmark in American history. Of course it was simply the mundane business of government: passing a budget, something the federal government does every year. Not only that, but amid all the celebrations it is easy to miss the fact that the budget deal was well overdue, coming some six months into the fiscal year, and therefore this supposedly great achievement only sees them through another six months.
Rather than getting caught up in the 'high-stakes drama' of the 'countdown to shutdown', most Americans watched with bemusement and dismay. How could such a serious step - shutting down the basic institution of government, with significant implications for jobs and services - be risked when there was so little separating the two sides? The reality was that the brinkmanship was intended to sway both parties' respective members of Congress, not the public at large. John Boehner, Republican majority leader in the House, wanted to prove to his Tea Party caucus that he was going down to the wire to obtain the maximum spending concessions; Harry Reid, Democrat majority leader in the Senate, wanted to cover his tracks by reassuring his liberal wing that he was not going to give in to Republican social policy issues, like the bid to defund Planned Parenthood.
That the politicians would subject the public to such a circus, just to bring their own members in line, shows how self-absorbed they are. Before the budget showdown, both parties in Congress were held in low esteem, with approval ratings of less than 20 per cent. The latest spectacle of politicians acting like juveniles will certainly not improve perceptions of Congress's stature.
Of the two parties, the Republicans retained some semblance of coherence. Mostly united behind a push for spending cuts, they managed to set the agenda. But for all of Boehner's self-congratulation afterwards, the cuts represented only a tiny percentage of the total budget. At the same time, because they were heavily focused on so-called 'discretionary' welfare spending, the reductions will disproportionately affect the poor and working class. In addition, the Republicans' pursuit of issues that had nothing to do with the budget - like the ban on the financing of abortions in Washington, DC - made it appear that they were simply using the occasion to advance their pet project
The most ludicrous of Boehner's claims was that the deal would help the economy. 'We fought to keep government spending down because it really will in fact help create a better environment for job creators in our country', he said. To date, businesses have not been holding back from hiring more because of government spending, and the relatively small cuts in the latest budget deal will have little or no influence on whether to create more jobs. While the Republicans are obsessed with cuts, they have no answer for economic growth; and if the economy doesn't grow, even cuts in spending won't come fast enough to reduce the deficit.
On the other side, the Democrats appear aimless and adrift. The fact that the 2011 budget took this long is a poor reflection on them: they had majorities in both Houses of Congress when this process should have been completed six months ago, so they only have themselves to blame for failing to come to agreement within their own party.
It is hard to know where Obama stands on these issues. At times he calls for 'investments in the future', but he also stresses that cuts are necessary, using the analogy of a family tightening its belt when times are tough. His initially proposed budget called for a $40 billion increase in spending, and then he ended up agreeing to a $39 billion decrease - a swing of $79 billion. To an objective observer, that would appear to be a defeat. And yet afterwards Obama pretended he had won. He called the deal 'good news for the American people' and boasted about 'making the largest annual spending cut in our history'.
What is clear coming out of the budget agreement is that the Democrats are allowing the Republicans to set the agenda. No longer is there any talk about stimulus, even though Obama previously said the stimulus would be necessary until the economy fully recovered and unemployment came down to pre-recession levels. (Indeed, most economists think the US economy is not out of the woods, and have marked down growth forecasts as a result of the budget deal, because the economy has been so reliant on state spending.) Nor is anyone really talking seriously about Obama's 'investments', like his half-hearted proposals to increase spending on infrastructure, high-speed rail and green-energy technology.
Instead, all the talk is about where to cut next. Obama and the Democrats have managed an incredible feat: they have made the Republican scaremongering bean-counters appear like courageous truth-tellers who are willing to tackle unsustainable deficits.
It now looks like there will be other occasions for 'drama' in the near future. First, there will be a vote on raising the national debt limit, which will probably occur sometime between mid-May and early July. Boehner is insisting that they will go down to the wire again unless 'there is something really, really big attached' to raising the cap - meaning further spending cuts. The White House is warning that not raising the debt limit would have 'Armageddon-like' consequences for the economy.
Second, a debate has started about the 2012 budget. Last week, Republican Paul Ryan unveiled the House proposal, and on Wednesday night Obama is expected to announce his counter-proposal. The 2012 process looks likely to drag on like the 2011 did, especially given that neither party will want to be seen to be conceding too much in the run-up to the 2012 election (which is a presidential one).
While disagreeing on the means, it is clear that both parties agree on the end: austerity. Even though the costs of Social Security and Medicare are structural contributors to government deficits, a focus on them (and deficits generally) is myopic. At the moment, there is no fiscal crisis. The real issue that is neglected amid all the deficit discussion is whether the US economy can generate growth. With growth, the current deficits will be taken care of; without growth, the doomsday scenario that fearmongers peddle today could become a self-fulfilling prophecy.
Neither major party has anything of substance to say about creating growth in productive industries. Their consensus on austerity is mind-numbing and uninspiring. To be subjected to the spectacle of recurring pantomimes over budgets only adds insult to injury.
SOURCE
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ELSEWHERE
A cancerous government: "Cancer cells grow and multiply like normal human tissue cells, but unlike normal cells, cancer cells suck up body resources without doing anything beneficial for the body. They eventually kill the body. The abnormal growth of government and government spending does exactly the same to civilizations. In the United States, government growth and spending has multiplied to the point where the draw down on productive contributors is starting to kill the host. There is little incentive to contribute values in the market place when the federal, state, and local governments are taking more than 50% of a taxpayer's income in many instances. Why work hard to create if the value will be confiscated?
AZ: Bill requires candidates to prove birth in US: "Arizona, which has shown little reluctance in bucking the federal government, is again plowing controversial ground, this time as its Legislature passed a bill to require President Obama and other presidential candidates to prove they were born in the United States before their names can appear on the state's ballot. If Governor Jan Brewer signs the proposal into law, Arizona would be the first state to pass such a requirement - potentially forcing a court to decide whether the president's birth certificate is enough to prove he can legally run for reelection. Hawaii officials have certified Obama was born in that state, but so-called birthers have demanded more proof"
Senate "Gang of Six" seeks accord on debt: "Days after President Obama called for forming a bipartisan group in Congress to begin negotiating a $4 trillion debt-reduction package, the parties have not even agreed to its membership. Yet six senators - three Democrats, three Republicans - say they are nearing consensus on just such a plan. Whether the so-called Gang of Six can actually deliver something when Congress returns from a recess in May could determine whether Democrats and Republicans can come together to resolve the nation's fiscal problems before the 2012 elections."
Obama tries to obstruct executions: "President Obama well may have begun another undeclared war -- this time on states that try to enforce their own death penalty laws -- on the dubious grounds that the Food and Drug Administration has not approved drugs intended to kill convicted killers. On March 15, the Drug Enforcement Administration seized Georgia's supply of sodium thiopental, the first drug given under the three-drug lethal injection protocol used in most of the country's 34 death-penalty states. The DEA also asked Kentucky and Tennessee for their sodium thiopental to aid its investigation."
The richer we get the more markets we need: "We can regard economic gr[ow]th as coming in two forms. There's catch up growth, such as what China is doing now and Japan did 50 years ago. What to do is largely known, for there are the examples of the richer, more advanced, economies that can be followed. ... However, once a place has got rich the problem changes. Catch up growth is no longer possible, for there's no one to catch up with. The economy has arrived at the technological frontier so there's no one to copy. Any further growth is going to come from innovation, new ways of doing things, rather than mobilising extant resources to simply do more. At which point governments can't do that planning and directing thing"
There is a new lot of postings by Chris Brand just up -- on his usual vastly "incorrect" themes of race, genes, IQ etc.
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
****************************
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
****************************
How stupid is President Barack Hussein Obama? Let me count the ways.
Judging from the philosophical pose he struck during Wednesday's "debt-reduction" address, the president is so stupid as to believe that the "rugged individualism," "self-reliance" and "healthy skepticism of too much government" - all qualities he attributed to the American people in that speech - can survive in the shadow of his government.
During his two years in office, Mr. Obama has accrued more debt than any president in American history. Why, in the month of March alone, his souped-up civil servants spent eight times what they collected in tax receipts and revenues.
For every year their honcho has been in office, the Obama officials have devoured over a trillion dollars, and will put Americans in hock to the tune of $1 trillion in interest payments alone by the end of this decade, if not sooner.
How stupid is our president? So stupid as to believe that the governmental juggernaut over which he presides is what connects us as a nation, and ensures that "we . do together what we cannot do as well for ourselves."
How stupid is Obama? So stupid as to believe that America became a great country in 1935, which is when the earliest of the Medicare, Medicaid and Social Security entitlements was signed into law. Dummy did, after all, declare yesterday that, "We would not be a great country without [these programs]."
How stupid is the president of the United States? So stupid as to think that "the rich" are rich because their "country," by which he means the ruling clique, "has done so much for them," and that they must, therefore, be compelled "to give back a little bit more."
That's like claiming the tick created the dog! Production predates government predation. Government doesn't produce wealth - it only consumes riches created by others, Mr. President.
Besides, the individual is the basic unit of society, without whom there would be no collective. A cleverer man would know that ACORN is the creation of community agitators like himself, not the other way around.
Indeed, backward is our president for reasoning backwards. To wit, if B, then A: if "rich," then exploitative, but if poor, then exploited. That's a bad mistake.
Just how backward is Barack? Such an intellectual laggard is the country's commander in chief as to frame the massive spending he is directing as a "key investment in our future." The wherewithal for the largess exhibited by Mr. Obama's menagerie of moron has been siphoned off from the private economy (and from China).
How studiously dumb is our president? So stupid as to claim that the real "damage . caused to our nation's checkbook," a checking account he controls and we and our Chinese enablers keep in funds, is caused by tax cuts for the rich.
In other words, returning some stolen property ? that's what taxes are ? to its rightful owners is causing America to go under. That, and not the debt our overweening overlords have accumulated in the course of expanding their jurisdiction stateside and overseas.
A note to anyone who is as gormless as the president: Government is doomed to fail because it is bereft of the constraints private property imposes. The more funds funneled into an insolvent system, in which property is communally "owned" - the greater the squandering of these scarce, precious, appropriated resources.
Most of what the government currently does is financed by borrowing. President Obama spoke at length about his "vision for America." But if he must beg or steal to keep his vision alive, then there is something wrong with this "vision," and not with its victims.
But, as Ron White, that great satirist from the great state of Texas, teaches, "You can't fix stupid." "There is not a pill you can take, not a class you can go to. Stupid is forever."
SOURCE
**********************
US budget "showdown"
For all the attempts to talk up the budget clash as a great historical drama, in truth it revealed the pathetic state of American politics. It looked like money for US government agencies would run out at midnight. But an hour before that deadline, congressional leaders and President Obama reached a budget deal that prevented a government shutdown and massive job lay-offs. The compromise cuts about $39 billion from federal spending this year.
Listening to the media coverage, it seemed like a great political drama was taking place. CNN showed a countdown clock, with the minutes ticking away ominously towards the shutdown at midnight. In reality, though, the whole thing was an example of the pathetic state of American politics. The Financial Times was right to refer to the shambolic last-minute deal-making as 'banana republic machinations'.
Despite what the breathless news reporters said, this was not a battle over political principle. Yes, the US federal deficit is large, but this agreement was never intended to put even a small dent in it. Both parties had agreed to reduce spending, and the differences between them towards the end had boiled down to $1 billion or $2 billion, out of a total budget of $3,700 billion.
Following the deal, a beaming Obama said: 'Today, Americans of different beliefs came together.' Based on his enthusiasm, you could be forgiven for thinking that the agreement marked a landmark in American history. Of course it was simply the mundane business of government: passing a budget, something the federal government does every year. Not only that, but amid all the celebrations it is easy to miss the fact that the budget deal was well overdue, coming some six months into the fiscal year, and therefore this supposedly great achievement only sees them through another six months.
Rather than getting caught up in the 'high-stakes drama' of the 'countdown to shutdown', most Americans watched with bemusement and dismay. How could such a serious step - shutting down the basic institution of government, with significant implications for jobs and services - be risked when there was so little separating the two sides? The reality was that the brinkmanship was intended to sway both parties' respective members of Congress, not the public at large. John Boehner, Republican majority leader in the House, wanted to prove to his Tea Party caucus that he was going down to the wire to obtain the maximum spending concessions; Harry Reid, Democrat majority leader in the Senate, wanted to cover his tracks by reassuring his liberal wing that he was not going to give in to Republican social policy issues, like the bid to defund Planned Parenthood.
That the politicians would subject the public to such a circus, just to bring their own members in line, shows how self-absorbed they are. Before the budget showdown, both parties in Congress were held in low esteem, with approval ratings of less than 20 per cent. The latest spectacle of politicians acting like juveniles will certainly not improve perceptions of Congress's stature.
Of the two parties, the Republicans retained some semblance of coherence. Mostly united behind a push for spending cuts, they managed to set the agenda. But for all of Boehner's self-congratulation afterwards, the cuts represented only a tiny percentage of the total budget. At the same time, because they were heavily focused on so-called 'discretionary' welfare spending, the reductions will disproportionately affect the poor and working class. In addition, the Republicans' pursuit of issues that had nothing to do with the budget - like the ban on the financing of abortions in Washington, DC - made it appear that they were simply using the occasion to advance their pet project
The most ludicrous of Boehner's claims was that the deal would help the economy. 'We fought to keep government spending down because it really will in fact help create a better environment for job creators in our country', he said. To date, businesses have not been holding back from hiring more because of government spending, and the relatively small cuts in the latest budget deal will have little or no influence on whether to create more jobs. While the Republicans are obsessed with cuts, they have no answer for economic growth; and if the economy doesn't grow, even cuts in spending won't come fast enough to reduce the deficit.
On the other side, the Democrats appear aimless and adrift. The fact that the 2011 budget took this long is a poor reflection on them: they had majorities in both Houses of Congress when this process should have been completed six months ago, so they only have themselves to blame for failing to come to agreement within their own party.
It is hard to know where Obama stands on these issues. At times he calls for 'investments in the future', but he also stresses that cuts are necessary, using the analogy of a family tightening its belt when times are tough. His initially proposed budget called for a $40 billion increase in spending, and then he ended up agreeing to a $39 billion decrease - a swing of $79 billion. To an objective observer, that would appear to be a defeat. And yet afterwards Obama pretended he had won. He called the deal 'good news for the American people' and boasted about 'making the largest annual spending cut in our history'.
What is clear coming out of the budget agreement is that the Democrats are allowing the Republicans to set the agenda. No longer is there any talk about stimulus, even though Obama previously said the stimulus would be necessary until the economy fully recovered and unemployment came down to pre-recession levels. (Indeed, most economists think the US economy is not out of the woods, and have marked down growth forecasts as a result of the budget deal, because the economy has been so reliant on state spending.) Nor is anyone really talking seriously about Obama's 'investments', like his half-hearted proposals to increase spending on infrastructure, high-speed rail and green-energy technology.
Instead, all the talk is about where to cut next. Obama and the Democrats have managed an incredible feat: they have made the Republican scaremongering bean-counters appear like courageous truth-tellers who are willing to tackle unsustainable deficits.
It now looks like there will be other occasions for 'drama' in the near future. First, there will be a vote on raising the national debt limit, which will probably occur sometime between mid-May and early July. Boehner is insisting that they will go down to the wire again unless 'there is something really, really big attached' to raising the cap - meaning further spending cuts. The White House is warning that not raising the debt limit would have 'Armageddon-like' consequences for the economy.
Second, a debate has started about the 2012 budget. Last week, Republican Paul Ryan unveiled the House proposal, and on Wednesday night Obama is expected to announce his counter-proposal. The 2012 process looks likely to drag on like the 2011 did, especially given that neither party will want to be seen to be conceding too much in the run-up to the 2012 election (which is a presidential one).
While disagreeing on the means, it is clear that both parties agree on the end: austerity. Even though the costs of Social Security and Medicare are structural contributors to government deficits, a focus on them (and deficits generally) is myopic. At the moment, there is no fiscal crisis. The real issue that is neglected amid all the deficit discussion is whether the US economy can generate growth. With growth, the current deficits will be taken care of; without growth, the doomsday scenario that fearmongers peddle today could become a self-fulfilling prophecy.
Neither major party has anything of substance to say about creating growth in productive industries. Their consensus on austerity is mind-numbing and uninspiring. To be subjected to the spectacle of recurring pantomimes over budgets only adds insult to injury.
SOURCE
**************************
ELSEWHERE
A cancerous government: "Cancer cells grow and multiply like normal human tissue cells, but unlike normal cells, cancer cells suck up body resources without doing anything beneficial for the body. They eventually kill the body. The abnormal growth of government and government spending does exactly the same to civilizations. In the United States, government growth and spending has multiplied to the point where the draw down on productive contributors is starting to kill the host. There is little incentive to contribute values in the market place when the federal, state, and local governments are taking more than 50% of a taxpayer's income in many instances. Why work hard to create if the value will be confiscated?
AZ: Bill requires candidates to prove birth in US: "Arizona, which has shown little reluctance in bucking the federal government, is again plowing controversial ground, this time as its Legislature passed a bill to require President Obama and other presidential candidates to prove they were born in the United States before their names can appear on the state's ballot. If Governor Jan Brewer signs the proposal into law, Arizona would be the first state to pass such a requirement - potentially forcing a court to decide whether the president's birth certificate is enough to prove he can legally run for reelection. Hawaii officials have certified Obama was born in that state, but so-called birthers have demanded more proof"
Senate "Gang of Six" seeks accord on debt: "Days after President Obama called for forming a bipartisan group in Congress to begin negotiating a $4 trillion debt-reduction package, the parties have not even agreed to its membership. Yet six senators - three Democrats, three Republicans - say they are nearing consensus on just such a plan. Whether the so-called Gang of Six can actually deliver something when Congress returns from a recess in May could determine whether Democrats and Republicans can come together to resolve the nation's fiscal problems before the 2012 elections."
Obama tries to obstruct executions: "President Obama well may have begun another undeclared war -- this time on states that try to enforce their own death penalty laws -- on the dubious grounds that the Food and Drug Administration has not approved drugs intended to kill convicted killers. On March 15, the Drug Enforcement Administration seized Georgia's supply of sodium thiopental, the first drug given under the three-drug lethal injection protocol used in most of the country's 34 death-penalty states. The DEA also asked Kentucky and Tennessee for their sodium thiopental to aid its investigation."
The richer we get the more markets we need: "We can regard economic gr[ow]th as coming in two forms. There's catch up growth, such as what China is doing now and Japan did 50 years ago. What to do is largely known, for there are the examples of the richer, more advanced, economies that can be followed. ... However, once a place has got rich the problem changes. Catch up growth is no longer possible, for there's no one to catch up with. The economy has arrived at the technological frontier so there's no one to copy. Any further growth is going to come from innovation, new ways of doing things, rather than mobilising extant resources to simply do more. At which point governments can't do that planning and directing thing"
There is a new lot of postings by Chris Brand just up -- on his usual vastly "incorrect" themes of race, genes, IQ etc.
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
****************************
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
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Sunday, April 17, 2011
Pastrami on rye
A recent posting on my personal blog is concerned with how best to serve Pastrami on rye. If anybody reading here has strong views on the matter, I would be delighted to hear from them.
*********************
HMS Sausage returns to port for the last time
Wait for it
To stop the video, click the bottom left-hand corner
More HERE
Cumberland sausage is well known in Britain -- hence the nickname of the ship
****************************
Are the good times really over for good?
An excerpt below from a book review in which both the author and the reviewer express optimism about America's economic future. Rather surprisingly, both overlook the role of an ever-expanding government. They acknowledge that the average American stopped getting richer decades ago but really have no explanation for it.
That all the gains from technological progress and innovation have been swallowed up by an ever-expanding bureaucracy they do not consider. You can't take more and more people out of the productive workforce and expect the supply of goods and services to grow. Sure, the bureaucracy does provide "services" of a kind but not ones most people value or would willingly pay for.
And the destruction of savings held in American dollars brought about by Obama's money-printing binge is mostly still to be felt. It is hard to see how the Obama legacy of a greatly expanded government and people with destroyed savings is going to allow for much bounce-back any time soon.
Unless of course America gets a President who abolishes all federal departments that cover matters already covered by the States. Abolishing the Federal Depts. of Health and Education would hurt no-one and the DEA, OSHA, EPA (etc.) also overlap and could readily go too
Cowen, a George Mason University economist, argues that since colonial times the American economy has benefited from "low-hanging fruit"—i.e., bountiful opportunities for growth. He singles out three in particular: free land, technological breakthroughs, and "smart but uneducated kids."
"Yet during the last forty years," Cowen writes, "that low-hanging fruit started disappearing, and we started pretending it was still there. We have failed to recognize that we are at a technological plateau and the trees are more bare than we would like to think. That's it. That is what has gone wrong." Cowen identifies the exhaustion of that low-hanging fruit as the main culprit behind the slowdown in growth during recent decades, rising inequality, the nastiness of present-day politics, and even the recent global financial meltdown. Looking forward, he admits the possibility that innovation and growth will pick up again, perhaps catalyzed by the rise of China and India. Cultural change would help, he argues. Specifically, his chief prescription is that we somehow raise the social status of scientists.
Cowen is hardly the first boy to cry wolf. In previous periods of deep economic distress, other prognosticators have grabbed attention by claiming that innovation and growth are at long last winding down. During the Great Depression of the 1930s, the "secular stagnationists," led by Keynesian economist Alvin Hansen, argued that falling population growth and dwindling prospects for technological progress meant that "mature" economies could combat chronic underinvestment and unemployment only through massive government spending. And during the stagflation of the 1970s, the Club of Rome and many others warned that ecological constraints were finally imposing "limits to growth." So here we are: another macroeconomic crisis, another gloomy prophet.
We should remember, however, that at the end of this story the wolf actually does come. So could Cowen be right this time?
He certainly is correct in identifying a poorly understood phenomenon of fundamental importance: Innovation and economic growth are getting harder. During the last few decades, rapid growth in the number of scientists, engineers, and researchers has not resulted in a corresponding acceleration of economic growth or new inventions. Indeed, the number of patents per researcher has been falling steadily. "In each industry the most obvious ideas are discovered first," explained Paul Segerstrom of the Stockholm School of Economics in a 1998 American Economic Review article, "making it harder to find new ideas subsequently."
Cowen is also right that a big source of relatively easy growth during the 20th century—investment in education—has been exhausted. In 1900 only 6 percent of American kids graduated high school, and only 0.25 percent went to college. The high school graduation rate peaked at roughly 80 percent in the late 1960s and has slipped a bit since, while some 40 percent of college-age kids are now in college. Moving these numbers upward without cutting standards further may be possible, but it certainly won't be easy, and in any event the biggest gains in improving educational attainment are likely behind us.
But there is another side of the coin. Yes, pursuing any particular avenue of scientific research or technological development yields diminishing returns. But it is often the case that advances in one area open up entirely new avenues of progress in others. To put it another way, we keep discovering previously hidden orchards of low-hanging fruit. The microelectronics revolution of the last half-century is a spectacular case in point: Continuing exponential growth in information processing capacity has made possible sweeping innovations in a host of industries unrelated to silicon chips. Looking ahead, exciting developments in biotechnology, nanotechnology, and artificial intelligence promise future waves of revolutionary innovation.
Furthermore, even as growth gets harder, our institutions of wealth creation have improved. The number of scientists and researchers has grown, and their tools keep getting better. American corporations have undergone wrenching restructuring in recent decades to make them more innovative and responsive to change. On the whole, government policies today are much more favorable to entrepreneurship and innovation than they were a half-century ago. And continued progress on all these fronts remains possible.
How do these countervailing forces balance out? My reading of the evidence doesn't support Cowen's sweeping historical narrative that centuries of easy progress are now behind us. Much of the force of his argument comes from contrasting America's glittering economic performance in the decades following World War II with the decidedly less impressive record in recent decades. But if you zoom out and look at the larger historical record, Cowen's "Great Stagnation" more or less disappears. And if you zoom in and examine recent trends in detail, the numbers likewise belie the claim that we have hit a "technological plateau."
Cowen correctly points out that median family income rose smartly after World War II, only to fall off sharply in the 1970s. Per capita GDP figures reveal the same trend, albeit a little less dramatically (because of the rise in income inequality, which means most of the income gains have come among higher earners). Between 1950 and 1973, the average annual growth rate of real GDP per capita was 2.5 percent; for the period between 1973 and 2007, the corresponding figure was only 1.9 percent.
More HERE
***********************
Leftist haters don't know what "depleted" means
Read the bit of paranoia below and you can see how hatred of the world you live in can anaesthetize your powers of thought. "Depeleted" uranium is of course uranium from which the radioactive component has been removed. But the sad souls below still refer to it as "radioactive"
By most accounts, the U.S. has embarked on another humanitarian war, and its fifth one, using depleted uranium. In this compelling 2004 study, geoscientist and radiation expert Leuren Moret paints a bold picture of the pervasive and devastating effects of this "silent killer that will not go away". However, beyond its much-touted military advantages, Moret suggests that depleted uranium serves as a deadly instrument for furthering Washington’s unavowed geo-strategic agenda, as in Libya today.
The use of depleted uranium weaponry by the United States, defying all international treaties, will slowly annihilate all species on earth including the human species, and yet this country continues to do so with full knowledge of its destructive potential.
Since 1991, the United States has staged four wars using depleted uranium weaponry, illegal under all international treaties, conventions and agreements, as well as under the US military law. The continued use of this illegal radioactive weaponry, which has already contaminated vast regions with low level radiation and will contaminate other parts of the world over time, is indeed a world affair and an international issue. The deeper purpose is revealed by comparing regions now contaminated with depleted uranium — from Egypt, the Middle East, Central Asia and the northern half of India — to the US geostrategic imperatives described in Zbigniew Brzezinski’s 1997 book The Grand Chessboard.
The fact is that the United States and its military partners have staged four nuclear wars, "slipping nukes under the wire" by using dirty bombs and dirty weapons in countries the US needs to control. Depleted uranium aerosols will permanently contaminate vast regions and slowly destroy the genetic future of populations living in those regions, where there are resources which the US must control, in order to establish and maintain American primacy
More HERE
There is a tiny element of radioactivity left in DU but there is is a tiny element of radioactivity in lots of things -- granite, for instance. If the nutters above were in the real world they might perhaps have pointed to the fact that U-238 is a heavy metal and heavy metals have some health concerns surrounding them. But even the WHO (a UN body) has said that there is no evidence of adverse health effects from DU -- JR
*************************
Obama's dismal assumptions
President Obama’s speech on the fiscal crisis was not merely political. It was also highly ideological. Despite how counterintuitive it may seem to pursue an expansion of government spending while a good bit of the world is seeking a government “downsizing” (including much of Europe), President Obama’s proposals fit with what we know about him.
The governing philosophy that leads our President to these sorts of proposals has been identified by many different names. Statism, Marxism, Socialism – the Obama agenda arguably contains elements of all of these philosophies, and more.
But rather than trying to connect President Barack Obama to somebody else’s pre-established political philosophy, it’s useful to examine what appear to be the philosophical assumptions with which the President operates. Here are just a couple of the assumptions that currently seem to have engulfed the President:
“Government always know best” – President Barack Obama seems to have very little confidence in the abilities of private individuals and groups to solve problems, and seems to view individual liberty as a problem to be “managed.” Thus, no matter what the dilemma – the rising cost of healthcare, the collapse of American automobile companies, or a proliferation of “bullying” on school campuses – the President’s instinctive responses are almost always the same.
Form a commission. Convene a summit. Appoint a Czar. Set-up a new “department.” The President seems to assume that with more oversight and control, government will always act benevolently and in the “collective interests” of all, whereas private individuals and organizations are almost always suspected of acting selfishly and destructively.
This philosophical assumption was absolutely entailed in the President’s remarks about our fiscal crisis. While Congressman Paul Ryan, the House Budget Committee Chairman proposed to expand competition in the healthcare markets as a means of reducing Medicare costs, an indignant President Obama would have nothing to do with the idea (as the Wall Street Journal pointed out the President stopped short of calling this idea “murderous”).
The only means by which entitlement spending on Medicare can be controlled, so far as President Obama is concerned, is to have all Medicare coverage decisions routed through an un-elected commission in Washington so as to eliminate “unnecessary” Medicare payments (this approach also re-affirms his previously stated belief that greedy medical doctors have a proclivity to bill Medicare for unnecessary procedures, simply because they want the money).
“Private resources ultimately belong to the government” – President Obama is well known for his “spread- the-wealth-around inclinations, given his now famous run-in with the “Joe the Plummer” character during the 2008 presidential campaign. What often goes unnoticed, however, is that he frequently speaks not merely of government’s “right” to re-distribute private wealth, but of government’s ultimate ownership of it.
This philosophical assumption was apparent in the President’s fiscal crisis speech as well. When discussing the taxation rates imposed upon America’s top income earners, President Obama insisted that America “can’t afford” to leave these rates in place. Both explicitly, and implicitly, the President was saying that our government incurs a cost, when it does NOT take money away from private individuals.
How can this be? The government “loses” money, when it does not take money away from private citizens? President Obama has been using this line of reasoning for nearly all of the twenty-eight months of his presidency. It ultimately points towards a belief that your money, at the end of the day, belongs to the government, and it’s up to agents of government to determine how much you’re permitted to “keep.”
The President’s philosophical assumptions are not merely a matter of politics. They are a part of who he is. Can America withstand this?
More HERE
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Krauthammer on the budget
The most serious charge against Rep. Paul Ryan's budget is not the risible claim, made most prominently by President Obama in his George Washington University address, that it would "sacrifice the America we believe in." The serious charge is that the Ryan plan fails by its own standards: Because it only cuts spending without raising taxes, it accumulates trillions of debt and doesn't balance the budget until the 2030s. If the debt is such a national emergency, they say, Ryan never really gets you there from here.
But the critics miss the point. You can't get there from here without Ryan's plan. It's the essential element. Of course Ryan is not going to propose tax increases. You don't need Republicans for that. That's what Democrats do. The president's speech was a prose poem to higher taxes – with every allusion to spending cuts guarded by a phalanx of impenetrable caveats.
SOURCE
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
****************************
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
****************************
A recent posting on my personal blog is concerned with how best to serve Pastrami on rye. If anybody reading here has strong views on the matter, I would be delighted to hear from them.
*********************
HMS Sausage returns to port for the last time
Wait for it
To stop the video, click the bottom left-hand corner
More HERE
Cumberland sausage is well known in Britain -- hence the nickname of the ship
****************************
Are the good times really over for good?
An excerpt below from a book review in which both the author and the reviewer express optimism about America's economic future. Rather surprisingly, both overlook the role of an ever-expanding government. They acknowledge that the average American stopped getting richer decades ago but really have no explanation for it.
That all the gains from technological progress and innovation have been swallowed up by an ever-expanding bureaucracy they do not consider. You can't take more and more people out of the productive workforce and expect the supply of goods and services to grow. Sure, the bureaucracy does provide "services" of a kind but not ones most people value or would willingly pay for.
And the destruction of savings held in American dollars brought about by Obama's money-printing binge is mostly still to be felt. It is hard to see how the Obama legacy of a greatly expanded government and people with destroyed savings is going to allow for much bounce-back any time soon.
Unless of course America gets a President who abolishes all federal departments that cover matters already covered by the States. Abolishing the Federal Depts. of Health and Education would hurt no-one and the DEA, OSHA, EPA (etc.) also overlap and could readily go too
Cowen, a George Mason University economist, argues that since colonial times the American economy has benefited from "low-hanging fruit"—i.e., bountiful opportunities for growth. He singles out three in particular: free land, technological breakthroughs, and "smart but uneducated kids."
"Yet during the last forty years," Cowen writes, "that low-hanging fruit started disappearing, and we started pretending it was still there. We have failed to recognize that we are at a technological plateau and the trees are more bare than we would like to think. That's it. That is what has gone wrong." Cowen identifies the exhaustion of that low-hanging fruit as the main culprit behind the slowdown in growth during recent decades, rising inequality, the nastiness of present-day politics, and even the recent global financial meltdown. Looking forward, he admits the possibility that innovation and growth will pick up again, perhaps catalyzed by the rise of China and India. Cultural change would help, he argues. Specifically, his chief prescription is that we somehow raise the social status of scientists.
Cowen is hardly the first boy to cry wolf. In previous periods of deep economic distress, other prognosticators have grabbed attention by claiming that innovation and growth are at long last winding down. During the Great Depression of the 1930s, the "secular stagnationists," led by Keynesian economist Alvin Hansen, argued that falling population growth and dwindling prospects for technological progress meant that "mature" economies could combat chronic underinvestment and unemployment only through massive government spending. And during the stagflation of the 1970s, the Club of Rome and many others warned that ecological constraints were finally imposing "limits to growth." So here we are: another macroeconomic crisis, another gloomy prophet.
We should remember, however, that at the end of this story the wolf actually does come. So could Cowen be right this time?
He certainly is correct in identifying a poorly understood phenomenon of fundamental importance: Innovation and economic growth are getting harder. During the last few decades, rapid growth in the number of scientists, engineers, and researchers has not resulted in a corresponding acceleration of economic growth or new inventions. Indeed, the number of patents per researcher has been falling steadily. "In each industry the most obvious ideas are discovered first," explained Paul Segerstrom of the Stockholm School of Economics in a 1998 American Economic Review article, "making it harder to find new ideas subsequently."
Cowen is also right that a big source of relatively easy growth during the 20th century—investment in education—has been exhausted. In 1900 only 6 percent of American kids graduated high school, and only 0.25 percent went to college. The high school graduation rate peaked at roughly 80 percent in the late 1960s and has slipped a bit since, while some 40 percent of college-age kids are now in college. Moving these numbers upward without cutting standards further may be possible, but it certainly won't be easy, and in any event the biggest gains in improving educational attainment are likely behind us.
But there is another side of the coin. Yes, pursuing any particular avenue of scientific research or technological development yields diminishing returns. But it is often the case that advances in one area open up entirely new avenues of progress in others. To put it another way, we keep discovering previously hidden orchards of low-hanging fruit. The microelectronics revolution of the last half-century is a spectacular case in point: Continuing exponential growth in information processing capacity has made possible sweeping innovations in a host of industries unrelated to silicon chips. Looking ahead, exciting developments in biotechnology, nanotechnology, and artificial intelligence promise future waves of revolutionary innovation.
Furthermore, even as growth gets harder, our institutions of wealth creation have improved. The number of scientists and researchers has grown, and their tools keep getting better. American corporations have undergone wrenching restructuring in recent decades to make them more innovative and responsive to change. On the whole, government policies today are much more favorable to entrepreneurship and innovation than they were a half-century ago. And continued progress on all these fronts remains possible.
How do these countervailing forces balance out? My reading of the evidence doesn't support Cowen's sweeping historical narrative that centuries of easy progress are now behind us. Much of the force of his argument comes from contrasting America's glittering economic performance in the decades following World War II with the decidedly less impressive record in recent decades. But if you zoom out and look at the larger historical record, Cowen's "Great Stagnation" more or less disappears. And if you zoom in and examine recent trends in detail, the numbers likewise belie the claim that we have hit a "technological plateau."
Cowen correctly points out that median family income rose smartly after World War II, only to fall off sharply in the 1970s. Per capita GDP figures reveal the same trend, albeit a little less dramatically (because of the rise in income inequality, which means most of the income gains have come among higher earners). Between 1950 and 1973, the average annual growth rate of real GDP per capita was 2.5 percent; for the period between 1973 and 2007, the corresponding figure was only 1.9 percent.
More HERE
***********************
Leftist haters don't know what "depleted" means
Read the bit of paranoia below and you can see how hatred of the world you live in can anaesthetize your powers of thought. "Depeleted" uranium is of course uranium from which the radioactive component has been removed. But the sad souls below still refer to it as "radioactive"
By most accounts, the U.S. has embarked on another humanitarian war, and its fifth one, using depleted uranium. In this compelling 2004 study, geoscientist and radiation expert Leuren Moret paints a bold picture of the pervasive and devastating effects of this "silent killer that will not go away". However, beyond its much-touted military advantages, Moret suggests that depleted uranium serves as a deadly instrument for furthering Washington’s unavowed geo-strategic agenda, as in Libya today.
The use of depleted uranium weaponry by the United States, defying all international treaties, will slowly annihilate all species on earth including the human species, and yet this country continues to do so with full knowledge of its destructive potential.
Since 1991, the United States has staged four wars using depleted uranium weaponry, illegal under all international treaties, conventions and agreements, as well as under the US military law. The continued use of this illegal radioactive weaponry, which has already contaminated vast regions with low level radiation and will contaminate other parts of the world over time, is indeed a world affair and an international issue. The deeper purpose is revealed by comparing regions now contaminated with depleted uranium — from Egypt, the Middle East, Central Asia and the northern half of India — to the US geostrategic imperatives described in Zbigniew Brzezinski’s 1997 book The Grand Chessboard.
The fact is that the United States and its military partners have staged four nuclear wars, "slipping nukes under the wire" by using dirty bombs and dirty weapons in countries the US needs to control. Depleted uranium aerosols will permanently contaminate vast regions and slowly destroy the genetic future of populations living in those regions, where there are resources which the US must control, in order to establish and maintain American primacy
More HERE
There is a tiny element of radioactivity left in DU but there is is a tiny element of radioactivity in lots of things -- granite, for instance. If the nutters above were in the real world they might perhaps have pointed to the fact that U-238 is a heavy metal and heavy metals have some health concerns surrounding them. But even the WHO (a UN body) has said that there is no evidence of adverse health effects from DU -- JR
*************************
Obama's dismal assumptions
President Obama’s speech on the fiscal crisis was not merely political. It was also highly ideological. Despite how counterintuitive it may seem to pursue an expansion of government spending while a good bit of the world is seeking a government “downsizing” (including much of Europe), President Obama’s proposals fit with what we know about him.
The governing philosophy that leads our President to these sorts of proposals has been identified by many different names. Statism, Marxism, Socialism – the Obama agenda arguably contains elements of all of these philosophies, and more.
But rather than trying to connect President Barack Obama to somebody else’s pre-established political philosophy, it’s useful to examine what appear to be the philosophical assumptions with which the President operates. Here are just a couple of the assumptions that currently seem to have engulfed the President:
“Government always know best” – President Barack Obama seems to have very little confidence in the abilities of private individuals and groups to solve problems, and seems to view individual liberty as a problem to be “managed.” Thus, no matter what the dilemma – the rising cost of healthcare, the collapse of American automobile companies, or a proliferation of “bullying” on school campuses – the President’s instinctive responses are almost always the same.
Form a commission. Convene a summit. Appoint a Czar. Set-up a new “department.” The President seems to assume that with more oversight and control, government will always act benevolently and in the “collective interests” of all, whereas private individuals and organizations are almost always suspected of acting selfishly and destructively.
This philosophical assumption was absolutely entailed in the President’s remarks about our fiscal crisis. While Congressman Paul Ryan, the House Budget Committee Chairman proposed to expand competition in the healthcare markets as a means of reducing Medicare costs, an indignant President Obama would have nothing to do with the idea (as the Wall Street Journal pointed out the President stopped short of calling this idea “murderous”).
The only means by which entitlement spending on Medicare can be controlled, so far as President Obama is concerned, is to have all Medicare coverage decisions routed through an un-elected commission in Washington so as to eliminate “unnecessary” Medicare payments (this approach also re-affirms his previously stated belief that greedy medical doctors have a proclivity to bill Medicare for unnecessary procedures, simply because they want the money).
“Private resources ultimately belong to the government” – President Obama is well known for his “spread- the-wealth-around inclinations, given his now famous run-in with the “Joe the Plummer” character during the 2008 presidential campaign. What often goes unnoticed, however, is that he frequently speaks not merely of government’s “right” to re-distribute private wealth, but of government’s ultimate ownership of it.
This philosophical assumption was apparent in the President’s fiscal crisis speech as well. When discussing the taxation rates imposed upon America’s top income earners, President Obama insisted that America “can’t afford” to leave these rates in place. Both explicitly, and implicitly, the President was saying that our government incurs a cost, when it does NOT take money away from private individuals.
How can this be? The government “loses” money, when it does not take money away from private citizens? President Obama has been using this line of reasoning for nearly all of the twenty-eight months of his presidency. It ultimately points towards a belief that your money, at the end of the day, belongs to the government, and it’s up to agents of government to determine how much you’re permitted to “keep.”
The President’s philosophical assumptions are not merely a matter of politics. They are a part of who he is. Can America withstand this?
More HERE
*************************
Krauthammer on the budget
The most serious charge against Rep. Paul Ryan's budget is not the risible claim, made most prominently by President Obama in his George Washington University address, that it would "sacrifice the America we believe in." The serious charge is that the Ryan plan fails by its own standards: Because it only cuts spending without raising taxes, it accumulates trillions of debt and doesn't balance the budget until the 2030s. If the debt is such a national emergency, they say, Ryan never really gets you there from here.
But the critics miss the point. You can't get there from here without Ryan's plan. It's the essential element. Of course Ryan is not going to propose tax increases. You don't need Republicans for that. That's what Democrats do. The president's speech was a prose poem to higher taxes – with every allusion to spending cuts guarded by a phalanx of impenetrable caveats.
SOURCE
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
****************************
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
****************************
Saturday, April 16, 2011
Budget Battle, Budget Prattle
Jonah Goldberg
I cannot remember a more depressing week in Washington. The Republicans boasted a heroic accomplishment: slashing $38.5 billion from the budget, purportedly the largest cuts in history. But the cake was made from sawdust. Strip away the gimmicks and shine a light on the shadows, and it turns out the real cuts amounted to $352 million, or less than 1 percent of what was promised.
America borrows $4 billion a day. So we likely borrowed more than we cut in the amount of time the GOP leadership spent bragging about its "victory."
It is a dismal, dreary, mope-inducing performance that makes one wonder what the point of the 2010 elections were. If this was the best deal possible, fine. Republicans control only one house of Congress, and you can only achieve what is achievable. But they should have said so, admitted it frankly, and sworn to do better. Instead, the leadership touted their salt cracker of a budget cut as a feast, causing many to doubt they really grasp what their own voters want.
But as depressing as the Republicans' performance was, at least they're fighting for the right cause, their sails pointed in the right direction. What can be said of President Obama's speech this week?
Vice President Joe Biden reportedly fell asleep during the president's address. It would speak better of the man if he closed his eyes not out of weariness but as part of a prolonged wince as he listened to his boss spew a farrago of distortions, self-righteous non sequiturs and ideological fatwas in the cause of extending his presidency at the expense of both the country and his honor.
Just two months ago, Obama introduced a $3.73 trillion budget that did nothing to address America's long-term fiscal problems and added $1.6 trillion in debt (an amount roughly equal to Bill Clinton's annual budgets). It was a great and glorious punt, a rhetorical can-kicking of historic proportions. But now the president throws his budget away, concedes the scope of our fiscal wound and then proposes applying a quack's poultice to heal it.
Entitlements, he admits, are gobbling up the budget; they must be "on the table." But even as he puts the plates on the table with one hand, he removes them with the other, insisting his cooks can save the meal with price controls and rationing.
And if that doesn't work, 12 years and three presidential terms from now, a series of fictional "failsafes" will kick in and some magical commission will genie-blink even more fictional cuts.
Obama prefers this to the Republican approach, which would introduce market forces into health care in order to save a calcified system from collapsing under the weight of state controls. Indeed, he couldn't even acknowledge this is the intent of Republican plan, preferring instead to recycle ancient barbs and insults about conservative cruelty and class warfare.
In a speech billed as being full of specifics, it had precious few save the president's passionate desire to raise taxes on "the wealthy." Rhetorically, Obama defines the "rich" as millionaires like himself or billionaires like Warren Buffet. But in reality he sets his sights considerably lower: households (and small businesses) that make more than $250,000 a year.
As for shared sacrifice, it is hard to find any in his proposal. Six out of 10 U.S. households receive more from the government than they pay in taxes. If "shared sacrifice" is the standing order of the day, where is theirs? The president suggests that repealing Bush's tax cuts will save the day. But the vast bulk of those cuts go to people making less than $250,000 a year. The president wants to keep those cuts as his idea while talking about shared sacrifice. Meanwhile, as The Wall Street Journal notes, if you taxed everyone who makes over $100,000 at a rate of 100 percent, you still wouldn't raise enough to balance president Obama's budget, never mind pay off any debt.
The only good news to come from all of this is that the battle is now joined. The president has staked his banner in the soil of reactionary liberalism. Good. By setting his fortifications so far to the left of the middle ground, he gives the forces of reform room to advance far.
The rank and file are ready for battle, with the tea parties at the forefront. The only question is whether the GOP's generals have the stomach for the fight. And that question raises as much dread as hope.
SOURCE
*********************
Obama Blows up the Bridge
"Rather than building bridges, he's poisoning wells," said Rep. Paul Ryan, after listening to Barack Obama's scathing attack on his deficit reduction plan as a shredding of America's social contract with the elderly and poor. Ryan is right. Yet, with Obama's partisan savagery, virtually calling the GOP plan immoral, we have clarity.
There will be no grand bipartisan bargain on taxes and spending. The two parties on Capitol Hill and the president will not be coming together to solve the gravest financial and fiscal crisis America has faced since the Great Depression. Between them today is a high wall and a deep ditch.
The heart of the Ryan plan is to turn Medicaid into block grants to the states, so each can decide for itself how best to use the funds, and to convert Medicare into a program where the U.S. government would provide citizens with the funds and freedom to chose whatever health insurance they wished to buy. Obama denounced both.
But if the Republican Medicare and Medicaid proposals are dead on arrival in Harry Reid's Senate and Obama's White House, Obama's plan to raise taxes is equally lifeless.
On MSNBC's "Morning Joe," this writer asked Grover Norquist of Americans for Tax Reform exactly how many GOP members of the House had taken his pledge not to raise taxes. His response: "The commitment that 235 Republican members of the House and 40 Republicans in the Senate have signed is the Taxpayer Protection Pledge -- it says no raising taxes. So, taxes are off the table."
Seems clear. But if virtually every GOP member of the House and 40 GOP senators have signed a pledge not to raise taxes, how can they dishonor that pledge? How could they agree to raise the top U.S. income tax rate back up to the 40 percent of the Bill Clinton era, as Obama demands, then go home and tell voters they had no choice, that to get a deal with Reid and Obama they had to let the government take a larger share of the income of American citizens?
They cannot. Put bluntly, a vote by a Republican House to raise taxes as part of a big budget deal would be an act of collective suicide by the party of Speaker John Boehner.
And the Democrats? With the exception of the civil rights acts of the 1960s, no programs are more hallowed in party mythology than Medicare, Medicaid and Social Security. Are Democrats, after the "shellacking" of 2010, going to go home and tell their constituents they voted to cut Medicaid benefits?
Are they going to tell the old folks of the Greatest Generation and the Silent Generation and the retiring baby boomers that Medicare in the future will not be as generous as it has been in the past, that we are going to have to start rationing their health care?
The new Republican governors -- Scott Walker in Wisconsin, John Kasich in Ohio, Chris Christie in New Jersey, Tom Corbett in Pennsylvania -- all have resisted raising taxes, as has Andrew Cuomo, Democrat of New York, who enjoys remarkably high poll numbers for the times we live in.
The praise these governors are receiving, even when embattled, has also steeled the spine of congressional Republicans against any tax increase.
But if Democrats are not going to do even minor surgery on Medicare and Medicaid and Republicans are not going to raise taxes, there is no hope of big budget deal to cut a deficit now running at 11 percent of gross domestic product.
And that raises another question. How long can the Federal Reserve continue financing these deficits? China, choking on U.S. debt, is reportedly beginning to divest itself of U.S. bonds. Japan will need to sell U.S. bonds to get hard currency to repair the damage from the earthquake and tsunami. And the Fed is about to end its QE2 monthly purchases of $100 billion in U.S. bonds.
Where is the Fed going to borrow the $125 billion a month to finance this year's deficit of $1.65 trillion, and another of comparable size in 2012? Bill Gross' Pimco, the world's largest bond fund, has sold all his U.S. bonds and begun to short U.S. debt. Pimco is betting that the value of U.S. Treasury bonds will begin to fall.
We may be about to enter a maelstrom. No big budget deal is brokered. The deficit endures, and another looms in 2012. To finance them, the Fed borrows at the rate of $30 billion a week wherever it can. But as countries begin to choke on U.S. debt, the market starts to dry up. To attract investors, the Fed must raise interest rates, which sends bond prices sinking and forces interest rates up across the economy.
With interest rates rising, gas prices rising and inflation rising, the squeeze is on, and there is talk of a double-dip recession. And if that happens, Obama is toast. But, then, so are we.
SOURCE
***********************
The New Health Law: Bad for Doctors, Awful for Patients
While much has been said about the recently passed health care overhaul law and a multitude of cogent arguments have been made as to why the legislation must be repealed, lengthy debates have failed to adequately address how the 2,800 pages will prevent patients from receiving the medical care that they need and want. In fact, in some ways the federal government already hinders the ability of doctors to provide their patients with good care. These trends will no doubt worsen under PPACA. In addition, new regulations and mandates will place unaccountable regulators in between physicians and their patients.
Medicare’s physician reimbursement regimen is fraught with underpayments and perverse incentives. During the health care debate, supporters of PPACA praised Medicare’s ability to exploit its size to obtain lower fees with providers. While it is true that Medicare can bludgeon down physician fees, this is not one of the program’s greatest strengths, but actually one of its greatest weaknesses. These underpayments are ultimately shifted to patients in the form of shorter visits, less doctor face time, quick hospital discharges, and compromised care. Rather than reforming the government’s flawed reimbursement regimen, PPACA merely expands its scope to more people.
PPACA establishes the Patient-Centered Outcomes Research Institute to conduct research comparing the efficacy of medical and surgical interventions. The potential harm from this depends how it is used.
Federal regulators could easily use this research to ration care by financially punishing physicians prescribing these “less effective” treatments. This research coupled with reimbursement changes could easily pave the way for the government dictating to patients the medicines, tests, and procedures that they can and cannot have, regardless of willingness to pay and personal preference. This would replace the professional judgment of physicians with rigid rules set by regulators in Washington DC. This one-size-fits-all approach will limit choice and result in poor quality care.
The soon-to-be established health insurance exchanges will also give the federal government vast new control over physician practices. PPACA states that starting January 1, 2015, a qualified health plan can contract with a provider “only if such provider implements such mechanisms to improve health care quality as the Secretary may by regulation require.” Depending on the guidelines, this gives the federal government unprecedented new authority over not just those physicians accepting Medicare and Medicaid, but any provider accepting any third party payer offered through the exchange. Of course quality care is a good thing, but who should determine the definition of “quality?’ Who knows best? This regulation seems to be based on the notion that bureaucrats at HHS from afar know better than the doctor actually talking to and examining the patient. This will coerce physicians to practice medicine not the way they were taught, but the way the government tells them. Ultimately, this too will lead to poor quality, standardized care and restrict choice.
PPACA will strip away physician autonomy, drown doctors in bureaucracy, and drain job satisfaction. As the profession deteriorates, older doctors will retire while younger doctors will look to switch careers. Many young people considering a career in medicine will pursue other opportunities. The supply of providers will dwindle as demand for services reaches an all-time high. Ultimately, the consequences of the health overhaul law will be passed along to patients through restricted access, long wait for appointments, and rationed care.
The United States boasts the world’s premier health care system. With that said, of course there is room for improvement and efforts must be implemented to control spiraling costs. A better prescription for reform would be to build off the success of the current system while targeting its inevitable shortcomings.
Ultimately, there are only two ways to lower costs. One approach empowers bureaucrats to make tough decisions for doctors and patients. This has grave ramifications on quality of care and choice.
Unfortunately, the administration chose to pursue this route. Yet, patients would be better served if doctors were held more accountable by transparency and choice, rather than bureaucratic fiat. A more practical approach to lowering costs empowers and incentivizes patients to be smarter health care consumers. This entails solutions such as expanding health savings accounts, creating a national market for health insurance, and leveling the tax playing field. These could bend the cost curve down while simultaneously strengthening the patient-doctor relationship.
The time has come for a long-overdue, honest discussion on not just the impact that government will have on patients, doctors, and the practice of medicine, but the impact it already has had over the past forty-five years. The importance cannot be undersold as the Patient Protection and Affordable Care Act is indeed bad for doctors, but it is always the patient that suffers the most.
SOURCE
**********************
ELSEWHERE
End the war on dying cancer patients: "Stopping all war is not just something we need to do in the Middle East. It is something we need just as badly here at home. When I say 'stop all war,' I’m not just talking about the bombing and fighting overseas; I’m talking about the wars that the U.S. Government wages against its very own citizens. I am talking about how bureaucrats kill Americans, not with guns and bombs, but with laws and regulations."
UN: More than thirty killed in Iraqi raid on Iranian Communists: "An Iraqi army raid last week on Camp Ashraf left 34 Iranian exiles dead, according to a U.N. spokesman who on Thursday offered the first independent death toll for the attack that drew sharp rebukes from Baghdad's Western allies. The April 8 raid targeted the People's Mujahedeen Organization of Iran, which seeks to overthrow Iran's clerical leaders"
Class warfare: "In his speech yesterday, Obama brought up income inequality to justify higher taxes on the rich: 'In the last decade, the average income of the bottom 90% of all working Americans actually declined. The top 1% saw their income rise by an average of more than a quarter of a million dollars each. And that’s who needs to pay less taxes?' But even if the numbers are accurate, Obama portrays a much more divided America that really exists, because ... today’s top income earners today are often completely different people from yesterday’s top income earners."
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
****************************
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
****************************
Jonah Goldberg
I cannot remember a more depressing week in Washington. The Republicans boasted a heroic accomplishment: slashing $38.5 billion from the budget, purportedly the largest cuts in history. But the cake was made from sawdust. Strip away the gimmicks and shine a light on the shadows, and it turns out the real cuts amounted to $352 million, or less than 1 percent of what was promised.
America borrows $4 billion a day. So we likely borrowed more than we cut in the amount of time the GOP leadership spent bragging about its "victory."
It is a dismal, dreary, mope-inducing performance that makes one wonder what the point of the 2010 elections were. If this was the best deal possible, fine. Republicans control only one house of Congress, and you can only achieve what is achievable. But they should have said so, admitted it frankly, and sworn to do better. Instead, the leadership touted their salt cracker of a budget cut as a feast, causing many to doubt they really grasp what their own voters want.
But as depressing as the Republicans' performance was, at least they're fighting for the right cause, their sails pointed in the right direction. What can be said of President Obama's speech this week?
Vice President Joe Biden reportedly fell asleep during the president's address. It would speak better of the man if he closed his eyes not out of weariness but as part of a prolonged wince as he listened to his boss spew a farrago of distortions, self-righteous non sequiturs and ideological fatwas in the cause of extending his presidency at the expense of both the country and his honor.
Just two months ago, Obama introduced a $3.73 trillion budget that did nothing to address America's long-term fiscal problems and added $1.6 trillion in debt (an amount roughly equal to Bill Clinton's annual budgets). It was a great and glorious punt, a rhetorical can-kicking of historic proportions. But now the president throws his budget away, concedes the scope of our fiscal wound and then proposes applying a quack's poultice to heal it.
Entitlements, he admits, are gobbling up the budget; they must be "on the table." But even as he puts the plates on the table with one hand, he removes them with the other, insisting his cooks can save the meal with price controls and rationing.
And if that doesn't work, 12 years and three presidential terms from now, a series of fictional "failsafes" will kick in and some magical commission will genie-blink even more fictional cuts.
Obama prefers this to the Republican approach, which would introduce market forces into health care in order to save a calcified system from collapsing under the weight of state controls. Indeed, he couldn't even acknowledge this is the intent of Republican plan, preferring instead to recycle ancient barbs and insults about conservative cruelty and class warfare.
In a speech billed as being full of specifics, it had precious few save the president's passionate desire to raise taxes on "the wealthy." Rhetorically, Obama defines the "rich" as millionaires like himself or billionaires like Warren Buffet. But in reality he sets his sights considerably lower: households (and small businesses) that make more than $250,000 a year.
As for shared sacrifice, it is hard to find any in his proposal. Six out of 10 U.S. households receive more from the government than they pay in taxes. If "shared sacrifice" is the standing order of the day, where is theirs? The president suggests that repealing Bush's tax cuts will save the day. But the vast bulk of those cuts go to people making less than $250,000 a year. The president wants to keep those cuts as his idea while talking about shared sacrifice. Meanwhile, as The Wall Street Journal notes, if you taxed everyone who makes over $100,000 at a rate of 100 percent, you still wouldn't raise enough to balance president Obama's budget, never mind pay off any debt.
The only good news to come from all of this is that the battle is now joined. The president has staked his banner in the soil of reactionary liberalism. Good. By setting his fortifications so far to the left of the middle ground, he gives the forces of reform room to advance far.
The rank and file are ready for battle, with the tea parties at the forefront. The only question is whether the GOP's generals have the stomach for the fight. And that question raises as much dread as hope.
SOURCE
*********************
Obama Blows up the Bridge
"Rather than building bridges, he's poisoning wells," said Rep. Paul Ryan, after listening to Barack Obama's scathing attack on his deficit reduction plan as a shredding of America's social contract with the elderly and poor. Ryan is right. Yet, with Obama's partisan savagery, virtually calling the GOP plan immoral, we have clarity.
There will be no grand bipartisan bargain on taxes and spending. The two parties on Capitol Hill and the president will not be coming together to solve the gravest financial and fiscal crisis America has faced since the Great Depression. Between them today is a high wall and a deep ditch.
The heart of the Ryan plan is to turn Medicaid into block grants to the states, so each can decide for itself how best to use the funds, and to convert Medicare into a program where the U.S. government would provide citizens with the funds and freedom to chose whatever health insurance they wished to buy. Obama denounced both.
But if the Republican Medicare and Medicaid proposals are dead on arrival in Harry Reid's Senate and Obama's White House, Obama's plan to raise taxes is equally lifeless.
On MSNBC's "Morning Joe," this writer asked Grover Norquist of Americans for Tax Reform exactly how many GOP members of the House had taken his pledge not to raise taxes. His response: "The commitment that 235 Republican members of the House and 40 Republicans in the Senate have signed is the Taxpayer Protection Pledge -- it says no raising taxes. So, taxes are off the table."
Seems clear. But if virtually every GOP member of the House and 40 GOP senators have signed a pledge not to raise taxes, how can they dishonor that pledge? How could they agree to raise the top U.S. income tax rate back up to the 40 percent of the Bill Clinton era, as Obama demands, then go home and tell voters they had no choice, that to get a deal with Reid and Obama they had to let the government take a larger share of the income of American citizens?
They cannot. Put bluntly, a vote by a Republican House to raise taxes as part of a big budget deal would be an act of collective suicide by the party of Speaker John Boehner.
And the Democrats? With the exception of the civil rights acts of the 1960s, no programs are more hallowed in party mythology than Medicare, Medicaid and Social Security. Are Democrats, after the "shellacking" of 2010, going to go home and tell their constituents they voted to cut Medicaid benefits?
Are they going to tell the old folks of the Greatest Generation and the Silent Generation and the retiring baby boomers that Medicare in the future will not be as generous as it has been in the past, that we are going to have to start rationing their health care?
The new Republican governors -- Scott Walker in Wisconsin, John Kasich in Ohio, Chris Christie in New Jersey, Tom Corbett in Pennsylvania -- all have resisted raising taxes, as has Andrew Cuomo, Democrat of New York, who enjoys remarkably high poll numbers for the times we live in.
The praise these governors are receiving, even when embattled, has also steeled the spine of congressional Republicans against any tax increase.
But if Democrats are not going to do even minor surgery on Medicare and Medicaid and Republicans are not going to raise taxes, there is no hope of big budget deal to cut a deficit now running at 11 percent of gross domestic product.
And that raises another question. How long can the Federal Reserve continue financing these deficits? China, choking on U.S. debt, is reportedly beginning to divest itself of U.S. bonds. Japan will need to sell U.S. bonds to get hard currency to repair the damage from the earthquake and tsunami. And the Fed is about to end its QE2 monthly purchases of $100 billion in U.S. bonds.
Where is the Fed going to borrow the $125 billion a month to finance this year's deficit of $1.65 trillion, and another of comparable size in 2012? Bill Gross' Pimco, the world's largest bond fund, has sold all his U.S. bonds and begun to short U.S. debt. Pimco is betting that the value of U.S. Treasury bonds will begin to fall.
We may be about to enter a maelstrom. No big budget deal is brokered. The deficit endures, and another looms in 2012. To finance them, the Fed borrows at the rate of $30 billion a week wherever it can. But as countries begin to choke on U.S. debt, the market starts to dry up. To attract investors, the Fed must raise interest rates, which sends bond prices sinking and forces interest rates up across the economy.
With interest rates rising, gas prices rising and inflation rising, the squeeze is on, and there is talk of a double-dip recession. And if that happens, Obama is toast. But, then, so are we.
SOURCE
***********************
The New Health Law: Bad for Doctors, Awful for Patients
While much has been said about the recently passed health care overhaul law and a multitude of cogent arguments have been made as to why the legislation must be repealed, lengthy debates have failed to adequately address how the 2,800 pages will prevent patients from receiving the medical care that they need and want. In fact, in some ways the federal government already hinders the ability of doctors to provide their patients with good care. These trends will no doubt worsen under PPACA. In addition, new regulations and mandates will place unaccountable regulators in between physicians and their patients.
Medicare’s physician reimbursement regimen is fraught with underpayments and perverse incentives. During the health care debate, supporters of PPACA praised Medicare’s ability to exploit its size to obtain lower fees with providers. While it is true that Medicare can bludgeon down physician fees, this is not one of the program’s greatest strengths, but actually one of its greatest weaknesses. These underpayments are ultimately shifted to patients in the form of shorter visits, less doctor face time, quick hospital discharges, and compromised care. Rather than reforming the government’s flawed reimbursement regimen, PPACA merely expands its scope to more people.
PPACA establishes the Patient-Centered Outcomes Research Institute to conduct research comparing the efficacy of medical and surgical interventions. The potential harm from this depends how it is used.
Federal regulators could easily use this research to ration care by financially punishing physicians prescribing these “less effective” treatments. This research coupled with reimbursement changes could easily pave the way for the government dictating to patients the medicines, tests, and procedures that they can and cannot have, regardless of willingness to pay and personal preference. This would replace the professional judgment of physicians with rigid rules set by regulators in Washington DC. This one-size-fits-all approach will limit choice and result in poor quality care.
The soon-to-be established health insurance exchanges will also give the federal government vast new control over physician practices. PPACA states that starting January 1, 2015, a qualified health plan can contract with a provider “only if such provider implements such mechanisms to improve health care quality as the Secretary may by regulation require.” Depending on the guidelines, this gives the federal government unprecedented new authority over not just those physicians accepting Medicare and Medicaid, but any provider accepting any third party payer offered through the exchange. Of course quality care is a good thing, but who should determine the definition of “quality?’ Who knows best? This regulation seems to be based on the notion that bureaucrats at HHS from afar know better than the doctor actually talking to and examining the patient. This will coerce physicians to practice medicine not the way they were taught, but the way the government tells them. Ultimately, this too will lead to poor quality, standardized care and restrict choice.
PPACA will strip away physician autonomy, drown doctors in bureaucracy, and drain job satisfaction. As the profession deteriorates, older doctors will retire while younger doctors will look to switch careers. Many young people considering a career in medicine will pursue other opportunities. The supply of providers will dwindle as demand for services reaches an all-time high. Ultimately, the consequences of the health overhaul law will be passed along to patients through restricted access, long wait for appointments, and rationed care.
The United States boasts the world’s premier health care system. With that said, of course there is room for improvement and efforts must be implemented to control spiraling costs. A better prescription for reform would be to build off the success of the current system while targeting its inevitable shortcomings.
Ultimately, there are only two ways to lower costs. One approach empowers bureaucrats to make tough decisions for doctors and patients. This has grave ramifications on quality of care and choice.
Unfortunately, the administration chose to pursue this route. Yet, patients would be better served if doctors were held more accountable by transparency and choice, rather than bureaucratic fiat. A more practical approach to lowering costs empowers and incentivizes patients to be smarter health care consumers. This entails solutions such as expanding health savings accounts, creating a national market for health insurance, and leveling the tax playing field. These could bend the cost curve down while simultaneously strengthening the patient-doctor relationship.
The time has come for a long-overdue, honest discussion on not just the impact that government will have on patients, doctors, and the practice of medicine, but the impact it already has had over the past forty-five years. The importance cannot be undersold as the Patient Protection and Affordable Care Act is indeed bad for doctors, but it is always the patient that suffers the most.
SOURCE
**********************
ELSEWHERE
End the war on dying cancer patients: "Stopping all war is not just something we need to do in the Middle East. It is something we need just as badly here at home. When I say 'stop all war,' I’m not just talking about the bombing and fighting overseas; I’m talking about the wars that the U.S. Government wages against its very own citizens. I am talking about how bureaucrats kill Americans, not with guns and bombs, but with laws and regulations."
UN: More than thirty killed in Iraqi raid on Iranian Communists: "An Iraqi army raid last week on Camp Ashraf left 34 Iranian exiles dead, according to a U.N. spokesman who on Thursday offered the first independent death toll for the attack that drew sharp rebukes from Baghdad's Western allies. The April 8 raid targeted the People's Mujahedeen Organization of Iran, which seeks to overthrow Iran's clerical leaders"
Class warfare: "In his speech yesterday, Obama brought up income inequality to justify higher taxes on the rich: 'In the last decade, the average income of the bottom 90% of all working Americans actually declined. The top 1% saw their income rise by an average of more than a quarter of a million dollars each. And that’s who needs to pay less taxes?' But even if the numbers are accurate, Obama portrays a much more divided America that really exists, because ... today’s top income earners today are often completely different people from yesterday’s top income earners."
My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)
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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)
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