The corrupt Leftist crooks who run Britain

Despite the caution expressed below, almost all the crooks have been from the Labour party. Even the Prime Minister has been implicated. Only one Conservative member has been implicated as far as I have seen

The systematic misappropriation by MPs of the allowance paid to defray the expense of keeping a second home is one of the great scandals of modern public life. It is a story that our readers, indeed the whole country, need to be told. Now, for the first time, it can be. As The Daily Telegraph discloses today, it goes far beyond the now familiar tales of barbecue equipment, bath plugs or adult movies bought at the taxpayer's expense. Many honourable members (of all parties, because this is, explicitly, not a party political matter) have been complicit in what amounts to an officially sanctioned and sustained abuse of public funds perpetrated against their own constituents over many years.

The extent of their rapacity is astonishing; and its scale can only be fully appreciated with the disclosure of the information being published by this newspaper. It will make uncomfortable reading for the MPs, for their families and for their voters. But it is right that the public should know what has been going on. Indeed, had the House of Commons accepted a ruling by the Freedom of Information Tribunal, a body established under legislation passed by Parliament, it would already have been published....

Many have claimed tens of thousands of pounds to furnish and renovate what any reasonable person would consider to be their principal residence – the home where their families reside. A large proportion of MPs have refurbished, decorated and sold second homes at taxpayers' expense, using the allowance to pay the mortgage interest and then pocketing the profit or buying another property. Many seem to have come to regard the allowance as a basic human right to be used for the most prosaic purchase.

MPs maintain they are all acting within the rules, but that is only because they set the rules and enforce them. It is arguable that some have acted beyond the rules. Those responsible for the most egregious abuses must have known that what they were doing was far removed from the purpose of the additional costs allowance. Yet because everyone was at it, they all joined in, with few exceptions. It is clear many MPs regarded the money as theirs to be claimed whether it was proper to do so or not.

They have done so to bolster what many in the Commons consider to be an insufficient salary, currently £63,291. That may be so; and it is a matter to be considered by Sir Christopher Kelly and the independent committee on standards in public life in the inquiry now under way. This tawdry state of affairs is having a serious impact on the country's opinion of our elected representatives. A recent YouGov poll for The Daily Telegraph showed that 60 per cent of voters thought worse of MPs because of what they have discovered about the allowances system. Yet the evidence seen by this newspaper demonstrates that we did not know the full story – and nor were we going to be told it even when the receipts are officially published in a few weeks' time.

Efforts are under way to clean up this mess. Some reforms were agreed last week after a somewhat ham-fisted attempt by Gordon Brown to obtain political advantage from a scandal that afflicts every party. However, the central issue of the second-home allowance was deferred to Sir Christopher's inquiry. It is essential his committee expedites its work and comes up with its recommendations before the end of the year. In view of what we know now, there can be no doubt that the current system is rotten and cannot survive.

Any system based on an allowance that MPs are encouraged to claim in order to increase their income must be abandoned. There needs to be an independent audit of expenses that will obviate the need for future publication of receipts. If a system has public trust, it is not necessary for everyone to see what MPs claim. But in order for the Augean stables to be cleansed, it is first necessary to show how filthy they have become. Today, The Daily Telegraph does just that.

More HERE

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Deja vu

We’ve largely forgotten that Herbert Hoover, as secretary of commerce, initiated the first major Washington campaign to boost homeownership. His motivation was the 1920 census, which had revealed a small dip in ownership rates since 1910—from 45.9 percent to 45.6 percent of all households. The downturn was likely the result of a temporary diversion of resources away from housing during World War I. For Hoover, though, the apocalypse seemed nigh. “Nothing is worse than increased tenancy and landlordism,” he warned—though surely many things were worse. With little justification, he predicted that in just a few decades, three-quarters of all Americans would be renters. The press echoed the urgency. “The nation’s stability [is] being undermined,” the New York Times editorialized. “The masses [are] losing their struggle for a better life.”

Without waiting to see if postwar prosperity might solve the problem, in 1922 Hoover launched the Own Your Own Home campaign, hailed at the time as unique in the nation’s history. “The home owner has a constructive aim in life,” Hoover said, exhorting Americans to buy property. “He works harder outside his home, he spends his leisure hours more profitably, and he and his family live a finer life and enjoy more of the comforts and cultivating influences of our modern civilization.” Hoover urged “the great lending institutions, the construction industry, the great real estate men . . . to counteract the growing menace” of tenancy. He pressed builders to turn to residential construction and employers to support the cause. Some, like United States Steel and General Motors, agreed to provide parks and other amenities for the new housing developments that proliferated in response to Hoover’s call.

Hoover also called for new rules that would let nationally chartered banks devote a greater share of lending to residential properties. Congress responded in 1927, and the freed-up banks dived into the market, despite signs that it was overheating. The great national effort seemed to pay off. From mid-1927 to mid-1929, national banks’ mortgage lending increased 45 percent. The New York Times applauded the “wave of homebuilding” that “swept over” America; the country was becoming “a nation of home owners.” The 1930 census would later reveal a significant elevation in ownership rates, to 47.8 percent of all households.

But beneath the surface were disquieting signs. For as homeownership grew, so did the rate of foreclosures. From just 2 percent of commercial bank mortgages in 1922, they rose to 9 percent in 1926 and to 11 percent in 1927. This happened, of course, just as the stock-market bubble of the late twenties was inflating dangerously, making the federal housing initiative all the more hazardous. Soon after the October 1929 Wall Street crash, the housing market began to collapse, just as in today’s crisis, though the reasons were slightly different: panicked depositors withdrew money from their accounts, prompting bank runs; the banks ran out of capital and stopped making loans; and the mortgage market seized up. Homeowners, who in that era typically had short-term mortgages that required several refinancings before being paid off, suddenly couldn’t find new loans. Defaults exploded—by 1933, some 1,000 homes were foreclosing every day.

The Own Your Own Home campaign had trapped many Americans in mortgages far beyond their reach. New homeowners who had heard throughout the initiative that “the measurement of a man’s patriotism and worth as a citizen” was owning a home, wrote housing policy expert Dorothy Rosenman in 1945, had been “swept up by the same wave of optimism that swept the rest of the nation.” Financial institutions were exposed as well. Their mortgage loans outstanding had more than doubled between the early twenties and 1930—from $9.2 billion to $22.6 billion—one reason that about 750 financial institutions failed in 1930 alone. Construction firms, too, were ensnared, since they had heeded the government’s call and shifted to residential building. Housing starts jumped from about 250,000 new homes a year in the early 1920s to nearly 600,000 after the housing campaign—before slumping more than 80 percent after the crash. Construction jobs fell 70 percent from 1929 to 1933.

You might think that the Own Your Own Home campaign would have taught Washington the danger of trying to force homeownership up. Instead, the feds responded to the crisis with the Home Owners’ Loan Corporation (HOLC), a New Deal bailout program that made government an even bigger player in the housing market. Congress designed the HOLC to buy up troubled mortgages from lenders and then let homeowners refinance the loans with the government on more affordable terms. In theory, this would both aid strapped homeowners and clear bad loans from banks’ books, allowing them to resume mortgage lending.

The HOLC was a massive new federal agency, employing at its height some 20,000 people—appraisers, loan officers, auditors. By 1936, the agency’s total payroll was $26.2 million, the equivalent of $388 million today. The HOLC eventually received 1.9 million applications for mortgages and approved 1 million. Despite the more favorable terms that the HOLC offered, however, about one-fifth of the new mortgages defaulted, a failure rate that would sink a private-sector bank. Many who failed to pay might have been able to, but chose not to work out any arrangement with the government and essentially challenged the feds to kick them out—which officials were reluctant to do in the face of public opposition. HOLC loan officers classified about 65 percent of the defaults as resulting either from borrowers’ “noncooperation” or “obstinate refusal,” according to an analysis by Columbia University economist C. Lowell Harriss. “This type of noncooperation could sometimes be attributed to a desire to obtain free housing . . . an object that, in view of HOLC’s nature, was not difficult to realize,” Harriss wrote.

Ultimately, the HOLC did file more than 200,000 foreclosure actions. And its purchase of bad loans never revived mortgage lending, which stayed flat for the rest of the decade. The nation’s economic fundamentals were so lousy that little demand existed for new home loans.

Much more HERE

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BrookesNews Update

Obama's economic policy is a recipe for lower living standards : America faces two enormous problems: Bernanke and Obama. Bernanke is doing what he can to flood the economy with money. This can only lead to surging inflation, rising interest rates, current account problems and depreciation. Obama's spending, taxing and regulatory policies amount to an assault on capital accumulation. Unless he abandons these destructive policies any inflationary recovery engineered by Bernanke will be short-lived and possibly followed by a distinct fall in living standards
Professor Mankiw's plan to revive the US economy with a dose of super inflation: Professor Mankiw of Harvard University has come up with a brilliant scheme to rescue the US economy — flood it with money. In addition, force people to spend by taxing their dollars. This is the kind of destructive nonsense that is being taught in the universities
The Australian economy is still tanking : It is finally being noticed — at least by some — that something is seriously wrong with manufacturing and that it does not bode well for recovery. You're damn right it doesn't
US National Security betrayed: Nancy 'Scooter' Pelosi: Pelosi lies through her teeth about an intelligence briefing while he Democratic pals out the US intelligence apparatus with total impunity. This are the same phony patriots and their media collaborators who demand that 'Scooter' Libby by hanged drawn and quartered for having a faulty memory. These Democrats, led by Obama, have demonstrated complete contempt for US national security. Liars and hypocrites, everyone of them
From General Motors to United States Motors: Crushed by a greedy and stupid union, a craven management and arrogant, bullying politicians General Motors is in reality a nationalised car company, courtesy of the brilliant Obama and his clever advisors, and a permanent drain on the American taxpayer. Mussolini must be laughing in his grave
The Democrats target the U.S. Constitution for destruction: To patriotic Americans the Constitution is a sacred document to be cherished and protected. It is a symbol of American exceptionalism and the Inalienable Rights of Man. To the Democrats it is a decaying and irrelevant document, a barrier to their lust for power that needs to be overcome
When Hatred is Common : Why does the world not react with outrage to calls for extermination of Jews from anyone other than Ahmadinejad? If the West is serious about peace, then all hatred must be condemned
Perez Hilton: The foul face of 'gay' activism : So, insofar as liberals continue to dig their own hole by defending Hilton and piling on Prejean, I submit they're doing the other 70 percent of us a favor. In their biting anger, they've cast aside the sublime mask of 'tolerance,' revealing an ugly, desperate and most intolerant countenance

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ELSEWHERE

Obama stiffs Chrysler's secured creditors: "Rebel lenders have dropped their legal fight against Chrysler's restructuring plan, increasing the carmaker's chance of a speedy exit from Chapter 11 bankruptcy protection. Tom Lauria, of White and Case, the lenders’ attorney, said that the rebel investment funds lacked the “critical mass to withstand the enormous pressure and machinery of the US Government”. The funds will no longer oppose a restructuring plan announced by Chrysler and President Obama’s automotive taskforce last week, increasing the chance of the car group getting out of Chapter 11 within the President’s 30-to 60-day target. Oppenheimer Funds and Stairway Capital Management, the two most prominent opponents of the restructuring, dropped the fight, admitting that there was little chance of winning a better deal from Chrysler for lenders. A group of about 20 funds forced Chrysler into Chapter 11 last week when they refused to sign up to a $US2 billion ($2.6 billion) deal to wipe out the company’s $US6.9 billion debt. The debt deal was part of Chrysler’s restructuring plan, under which the United Auto Workers (UAW) union would receive a 55 per cent stake in the company in return for forgiving half of Chrysler’s $US10.6 billion liability to a workers’ healthcare fund. The funds argued that the $US2 billion deal contravened US bankruptcy law because they were being offered a lower repayment on their secured debts than unsecured creditors such as the UAW. However, they were condemned by President Obama as selfish opportunists for refusing the offer."

Congress got 40 briefings from the CIA on interrogations: "On September 4, 2002, Porter Goss, then the Chairman of the House Permanent Select Committee on Intelligence, and Nancy Pelosi, the ranking Democratic member, were given a classified briefing by the CIA on what the Agency calls "enhanced interrogation techniques," or, in persistent media parlance, "torture." In particular, the CIA briefed the members on the use of these techniques on Abu Zubaydah, a high-ranking al Qaeda operative captured in Pakistan the previous March. These days, Speaker Pelosi insists she heard and saw no evil. "We were not -- I repeat -- were not told that waterboarding or any of these other enhanced interrogation methods were used," she told reporters late last month. "What they did tell us is that they had . . . the Office of Legal Counsel opinions [and] that they could be used, but not that they would." That doesn't square with the memory of Mr. Goss, who has noted that "we were briefed, and we certainly understood what the CIA was doing," adding that "Not only was there no objection, there was actually concern about whether the agency was doing enough."

More Acorn Voter Fraud Comes to Light: "Democrats are split on how to deal with Acorn, the liberal "community organizing" group that deployed thousands of get-out-the-vote workers last election. State and city Democratic officials -- who've been contending with its many scandals -- are moving against it. Washington Democrats are still sweeping Acorn abuses under a rug. On Monday, Nevada officials charged Acorn, its regional director and its Las Vegas field director with submitting thousands of fraudulent voter registration forms last year. Larry Lomax, the registrar of voters in Las Vegas, says he believes 48% of Acorn's forms "are clearly fraudulent." On Thursday, prosecutors in Pittsburgh, Pa., also charged seven Acorn employees with filing hundreds of fraudulent voter registrations before last year's general election".

Italy hearts Israel: "The foreign minister of Italy said his country's "friendship with the state of Israel and the Jewish people is a key plank of our foreign policy." Speaking at the American Jewish Committee's annual meeting on Thursday evening, Franco Frattini also discussed his country's decision to boycott last month's so-called Durban II conference on racism held in Geneva. The Obama administration joined Jewish groups and several other countries in boycotting the U.N. sponsored Durban Review Conference because of the failure of organizers to persuasively disassociate the conference from its 2001 predecessor in Durban, South Africa, which devolved into an anti-Jewish and anti-Israel forum. "We could not legitimize a message of hate," Frattini said. He said his country's decision not to attend was designed to "strengthen the legitimacy" and "credibility of the United Nations." But Frattini said the conference was a "missed opportunity" because "Europe was divided and hesitant." "The European Union must learn to speak with one voice," he said. Frattini also said he hoped the United States' decision to become a candidate for membership in the UN's Human Rights Council "is a sign there could be room" for the body to improve its role and become depoliticized. He also said Israel's "right to security and to defend itself is strictly non-negotiable and that Iran acquiring nuclear weapons is "not acceptable."

Ethics complaint against Palin dismissed: "An ethics complaint filed against Alaska Gov. Sarah Palin has been dismissed. The Alaska Personnel Board on Friday dismissed the complaint, which alleged Palin violated ethics rules by accepting outside employment with her political action committee. Anchorage resident Sondra Tompkins, who filed the complaint in April, also alleged Palin participated in partisan activities when she spoke at an anti-abortion dinner in Indiana. An investigator hired by the personnel board to review the complaint determined the allegations did not constitute ethics violations."

For more postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, 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 or here or here

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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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Britain shows the fraud of socialism

They are purely destructive. They do no good even by their own criteria. They have been running Britain since 1997

The gap between rich and poor grew to record levels last year, official figures have disclosed. The number of children living in poverty rose by 100,000, the data showed, confirming Labour's failure to meet a promise to cut child poverty. The Department of Work and Pensions yesterday released income data for 2007/08, the last full financial year before the UK economy went into recession.

The data showed that while incomes for the better-off grew only slowly, they still increased more quickly than those of the poorest. Inflation also hit the incomes of the poorest disproportionately, eroding the value of their welfare payments. People are commonly defined as being in poverty when their income is only 60 per cent of the median salary in Britain. By that measure, the number of children, working-age adults and pensioners in poverty rose by 300,000 to 11.0 million in 2007/08 before housing costs are considered. After housing costs, the number in poverty rose by 200,000 to 13.5 million.

According to economist at the Institute for Fiscal Studies, the figures mean that the Gini Coefficient, a measure of income inequality, is now at its highest level since they began compiling figures in 1961. Alastair Muriel, an IFS economist said: "Since the election, average incomes across the population have grown slowly, whilst they have fallen for the poorest." He added that the recession may see poorer households regain some ground if benefits grow more rapidly than the pay of the better off. Many companies are imposing pay freezes and even cuts on staff to cope with the downturn.

The data also dealt a heavy blow to Labour's claims on child poverty. Before housing costs are considered, the number of children in poverty remained unchanged at 2.9 million in 2007/08. After housing costs, the total increased by 100,000 to 4.0 million. In 2004/05, the figure hit a low of 3.6 million.

According to the DWP, the median weekly income in 2007/08 for a couple with two children was £601 before housing costs and £533 after housing costs. Such a couple would be considered poor if their monthly income pre-housing was £361, or £322 after housing.

The child poverty figures represent a political embarrasment for the Government and the Prime Minister. Labour in 1999 made a political pledge to eradicate child poverty, and reduce the "before housing costs" total to 1.7 billion by 2010. In 2001 Gordon Brown said to child poverty is a "scar on Britain's soul."

Ministers have already admitted that the 2010 target will be missed by around 1 million. Beverley Hughes, the Children's Minister, again admitted the target will be missed and hinted that child poverty could worsen. She said: "It is very difficult to model the impact of the recession on child poverty."

Last year's Queen's Speech promised a new legal obligation on ministers to end child poverty by 2020. Ms Hughes insisted that the government remains "absolutely committed" to that goal.

Colette Marshall, UK Director of Save the Children, said: "The Government has clearly broken its promise to lift up to three million children out of poverty in the UK. It is outrageous that so many children continue to miss out on the basic necessities most children take for granted."

Theresa May, the Conservative shadow work and pensions secretary, said: "Gordon Brown's pledge to halve child poverty by 2010 is just one of countless Labour promises that lies in tatters."

SOURCE

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MORE ON CHRYSLER'S BANKRUPTCY

By Neal Boortz

Yesterday I gave you a Boortz economic lesson in an attempt to explain what the Barack Obama administration is trying to pull in this Chrysler bankruptcy. The latest on this story ... Thomas Lauria, a lawyer for top creditors, has officially filed a motion to stop the Chrysler bankruptcy. Lauria claims that the Obama administration has violated the Constitution by trying to devalue the senior creditors' holdings on behalf of junior creditors. What does Lauria base this on? Something called the 5th Amendment. Maybe you have heard of it. Just in case, here is a little reminder:

No person shall be held to answer for a capital, or otherwise infamous crime, unless on presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

But wait ... as they say ... there's more! Lauria, who represents the group referred to as the non-TARP lenders, is going to ask that the bankruptcy court keep the names of his client confidential. Why would that be? Because they have been receiving threats. You can bet that some of the threats are coming from union members. These union goons like the idea of their pension debts being given priority to Chrysler's secured lenders, and I think we all know what union goons do when something happens they don't like. There was a time not too long ago when the Bureau of Alcohol, Tobacco and Firearms noted that the number one illegal use of explosives in the United States came at the hands of union members engaged in work actions.

But there's another group threatening the secured non-TARP creditors. That would be the White House. Lauria and others have claimed that people within the Obama administration have made it clear that if any of these secured lenders get in the way of Obama's gift to the unions the White House will work to destroy their reputation. Now the White House denies this. What would you expect? But listen to the language ... Obama has attacked these people in public as being "vultures" and has painted them as evil capitalists who don't want to stand by the families of Chrysler workers. If he'll do this in public, what do you think his attack dogs will do in private?

Even if you think Obama hung the moon; even if you're now calling him the best president this country ever had; you just have to recognize the danger in the precedent that's been set here. The United Auto Workers are getting priority for their unsecured Chrysler debt simply because they are political powerful. Now just how is that going to work out for us in the future? Do you want to live in a financial world where lenders base lending decision in part on the political prominence of the borrower?

Giving unsecured creditors priority over secured lenders in bankruptcy proceedings .. now that's change you can believe in.

SOURCE

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ELSEWHERE

Obama budget cuts target military funding: "President Obama has targeted the Department of Defense to absorb more than 80 percent of the cuts he has proposed in next year's budget for discretionary programs. In its "Terminations, Reductions and Savings" booklet, which the administration released Thursday, the White House highlighted the results of the president's line-by-line scrubbing of the federal budget. The administration identified $11.5 billion in discretionary program terminations and reductions for next year. The Defense Department will take a $9.4 billion hit, constituting 82 percent of the cuts. Defense accounts for 49 percent of spending on discretionary programs, which Congress must fund each year... The $17 billion in total cuts represents less than one-half of 1 percent of the $3.6 trillion 2010 budget the president proposed in February, and it is less than 1 percent of this year's budget deficit."

Britain still printing money: "The Bank of England yesterday stepped up its aggressive campaign to end Britain’s economic slump by ordering a surprise £50 billion expansion of its radical scheme to jump-start growth by “printing money”. Much of the City was wrong-footed as the Bank announced that it would immediately increase the size of its drive to pump extra cash through the economy by buying government and corporate bonds. The unexpected move will add to the Bank’s purchases so far of £46 billion of government bonds, or gilts, and corporate debt using newly created money under the £75 billion first phase of its radical “quantitative easing” scheme. It said that it would now raise the total to be spent under the plan to £125 billion. The Bank added that the measures would run for a further three months, beyond the first phase that was due to end at the end of this month, extending the unprecedented action until the end of August."

GM draws closer to bankruptcy in first quarter: “General Motors drew closer to bankruptcy Thursday, acknowledging that its revenue fell by nearly half as car buyers worldwide steered away from showrooms for fear that the auto giant would not be around to honor its warranties. The company lost $6 billion in the first three months of the year.”

The usual Illinois corruption: “Illinois State Police troopers seized a high-performance muscle car and set it aside for the personal use of an influential police official. The Associated Press reported that a suspected drunk driver in a 2006 Dodge Charger was pulled over in January 2007. The troopers used a state seizure law to confiscate the vehicle. Once the paperwork was complete, the 425-horsepower vehicle — which had an as-new base price of $38,000 — was handed over for the personal use of Ron Cooley, 56, the Executive Director of the Illinois State Police Merit Board. Taxpayers also pick up the fuel tab for gas-guzzling 6.1 liter V-8 as he drives to and from work each day and on various business trips.”

Moving toward drug legalization: “I think we’ve got a real shot at knocking out the drug war in the near future. Ten years ago, the average person would never even consider the idea, despite the fact that such notable figures as Milton Friedman (Nobel Prize winner), Bill Buckley (noted conservative), Kurt Schmoke (mayor of Baltimore), and others were calling for an end to the drug war. Today, even though there are a still plenty of people who won’t let go of the drug war, despite its manifest failure and destructiveness, everyone would concede that drug legalization is now a credible position, one that is being debated all across the country.”

Insolvent banks should feel market discipline: “Joseph Schumpeter famously argued that the essence of capitalism was creative destruction, by which new economic structures are born from the rubble of older ones. The government stress tests on the 19 largest US banks … could have facilitated this process. The opportunity looks likely to be missed. The tests, which measure how viable banks are under adverse economic conditions, have no ‘failed’ category, even if as many as 10 are reported to need additional capital. … Once again, the question will be how the near-insolvent banks can be kept afloat, to avoid systemic risk. But the question we really should be asking is: why keep insolvent banks afloat?”

Socking stocks: “Just as the economy begins showing glimmers of a turnaround, here comes President Obama with a ‘tax-reform’ effort that’s sure to sock the stock prices and after-tax profits of many of the biggest US employers. Obama’s $190 billion business-tax hike will hit Americans whose jobs and pensions depend on these companies doing well, and will increase pressure on already struggling colleges and hospitals. Why? Because millions of individual investors hold the companies’ stocks in their portfolios, mutual funds and pension funds, as do many colleges, hospitals, museums and other institutions in their endowments.”

For more postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, 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 or here or here

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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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That famous journalistic "fact-checking" that makes newspapers so superior to blogs

AN Irish student's fake quote on the Wikipedia online encyclopedia has been used in newspaper obituaries around the world, the Irish Times reports. The quote was attributed to French composer Maurice Jarre who died in March. Shane Fitzgerald, 22, a final-year student studying sociology and economics at University College Dublin, told the newspaper he placed the quote on the website as an experiment when doing research on globalisation.

He quoted Oscar-winning composer Jarre as saying, "One could say my life itself has been one long soundtrack. Music was my life, music brought me to life, and music is how I will be remembered long after I leave this life. "When I die there will be a final waltz playing in my head, that only I can hear."

The quote was posted on Wikipedia shortly after Jarre's death and later appeared in obituaries in major British, Indian and Australian newspapers.

Mr Fitzgerald told the newspaper he picked Wikipedia because it was something a lot of journalists look at and it can be edited by anyone.

While he was wary about the ethical implications of using someone's death as a social experiment, he had carefully generated the quote so as not to distort or taint Jarre's life, he said.

Mr Fitzgerald said he was shocked by the result of his experiment. "I didn't expect it to go that far. I expected it to be in blogs and sites, but on mainstream quality papers? I was very surprised about," he said. He said the hoax remained undiscovered for weeks until he emailed the newspapers that had been deceived to tell them that they had published an inaccurate quote.

The Irish Times said that despite some newspapers removing the quote from their websites or carrying a correction and the fact that it had been dropped by Wikipedia, it remained intact on dozens of blogs, websites and newspapers.

SOURCE

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Israel savages UN report on Gaza attacks

And the UN has gone very wobbly on it

ISRAELI officials lashed out yesterday at a UN report accusing the Jewish state of "negligence or recklessness" in attacks on UN facilities in the Gaza Strip during its war with Hamas in January. "The spirit of the report and its language are tendentious and entirely unbalanced," the Israeli Foreign Ministry said.

UN Secretary-General Ban Ki-moon, who reportedly accused Israel of lying about the damage it caused to UN facilities in the three-week conflict, nevertheless rejected the report's call for a full and impartial investigation into the war. He tempered the report's findings by telling a press conference that Israeli communities near the Gaza Strip "faced and continue to face indiscriminate rocket attacks by Hamas and other militant groups".

The five-man inquiry commission was led by Ian Martin, a Briton who is a former head of Amnesty International. Its brief was to investigate casualties or damage involving UN facilities in Gaza but its conclusions touch on broader humanitarian issues regarding Israel's use of massive firepower in the densely populated strip.

Mr Ban refused to publish the complete 184-page report but released his own summary of it. The report accused Israel of "varying degrees of negligence or recklessness" towards UN facilities in its Gaza operation and said the deaths of civilians should be investigated under international humanitarian law...

Israeli Defence Minister Ehud Barak said the report ignored the fact that Hamas and other militants had fired about 4000 rockets and mortar shells at Israel. "After eight years, we said 'enough'. We have the most moral army in the world. Responsibility lies solely with Hamas."

A central issue in the UN inquiry was a much-publicised incident at the Jabaliya refugee camp, where more than 40 civilians were reported killed inside a UN school compound by Israeli mortar fire, according to the Palestinians. UN officials in the area initially lent credence to the report. In response, Israeli officials said the army was responding to Hamas mortar fire from the compound. It eventually emerged that no Hamas fire had come from the compound and that no Israeli shells had hit the compound...

The first of the commission's 11 recommendations was that the UN seek "formal acknowledgment by the Government of Israel that its public statements alleging Palestinians fired" from within the UN school compound "were untrue and regretted". The report, however, apparently made no mention of the initial claims that Israeli shells had hit the school, causing more than 40 civilian casualties - a claim supported at the time by a UN agency - which were also untrue...

"When we saw the summary of the report, we were appalled," said an Israeli official to the news agency YNet. "It was written as if they didn't listen, didn't understand, maybe didn't want to understand."

More HERE

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Nigel Farage, the Leader of the UK Independence Party, gets the European Parliament right

This is one of the best political speeches I have heard for a long time. Do American politicians ever speak so frankly and forcefully? I think the GOP should recruit him, myself. He is referring to the Fascistic decision by the EU parliament to act as if their huge new "constitution" had been approved by the voters when in fact majorities in France, Ireland and Nederland (Holland) have rejected it at the ballot box

He points out that abuse is all they have to offer when he points out the impropriety of their actions. Sound familiar?



"A complete shower" is British slang meaning a group of completely incompetent and useless failures. It originated in the British armed forces where its unabbreviated version was "A complete shower of sh*t". I wonder how the EU translators translated it? It probably stumped them. All of the Anglospheric countries have rich slang vocabularies that are not usually in the dictionaries and which are not fully understood even in other Anglospheric countries. If I had been giving the speech above, I might well have called the EU parliament "a mob of drongoes", which is a rough translation into Australian English of Farage's remark.

Farage's UKIP is a minor British conservative party because the mainstream Tories include a substantial number of Europe-lovers. UKIP wants Britain out of the EU. I personally think that membership of NAFTA would suit Britain better than membership of the EU.

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Klaus vetoes Czech approval of Lisbon Treaty: “The Czech President Vaclav Klaus said he would not ratify the Lisbon Treaty after it was approved by the senate yesterday, raising a new obstacle to plans to reform the EU. Mr Klaus explained that he would not sign the treaty because of its rejection by Irish voters last year and an expected court challenge in the Czech Republic.”

Pentagon to add 20,000 more bureaucrats: “Under pressure to overhaul its troubled weapons-buying process, the U.S. Defense Department is planning to add 20,000 new federal jobs over five years to reinforce its ability to handle contracts, cost estimates and oversight, the deputy defense secretary said Wednesday. William Lynn told the Senate Armed Services Committee that as the department increases personnel, it also will move toward more fixed-price contracts, scrutinize programs more closely and link incentive payments to contractors’ performance.”

Report: FBI slow to update terror watchlist: "The FBI has been slow to update the national terror suspect watchlist — and the lapses pose real risks to U.S. security, a Justice Department audit has found. A report by the Justice Department’s Inspector General, Glenn Fine, found that 12 terror suspects who were either not watchlisted or were slow to be added to the list may have traveled into or out of the United States during the period when they were not placed on the list.”

Trickle-down corruption: “The White House, as a matter of policy, is rewriting legal contracts, picking winners (mostly labor unions and mortgage defaulters) and singling out losers (evil ’speculators’), while much of the media continue to ponder whether Obama is already a greater president than FDR. If a Republican administration, staffed with cronies from Goldman Sachs and Citibank, were cutting special deals for its political allies, I suspect we’d be hearing fewer FDR analogies and more nouns ending with the suffix ‘gate.’”

Britain got there first: "General Motors is now co-owned by the American taxpayer and labor unions. As a Briton, I find this development astonishing. It repeats the mistakes of the 1970s Labor government, which essentially killed off the British auto industry. America should avoid the same mistake. By the late 1960s, most of Britain’s famous motor industry names—including Rover, Austin, Morris, Triumph and Jaguar—had consolidated into a “Big Two”: British Motor Holdings (BMH) and Leyland Motor Corporation (LMC). LMC was profitable; BMH was not. BMH was trying to sell cars that reflected the tastes of a bygone era—its Morris Minor, for example, had been designed in 1948. Foreign-owned companies were making cars in the UK that were more to the buying public’s taste, like the famous Ford Cortina, which gave much better performance and fuel economy. Sound familiar? In 1968, the Labor government encouraged the merger of BMH and LMC into British Leyland Motor Company (BL). This company maintained production of a variety of brands that competed against each other, and engaged in a research and development crash program to develop new cars that people would actually want to buy. The results were the Morris Marina, a car that my family happily bought and even more happily discarded, and the Austin Allegro. Both models sold strongly, on the basis that they were British (huzzah!), but in the end their shoddy design destroyed the reputation of British automaking.... All these struggles bought was time. The company was simply not viable. Ironically, today the most productive car plant in Europe is in my home town of Sunderland, where 5,000 workers build 330,000 Nissan cars a year. There are still around 250,000 people employed in the design and manufacture of vehicles in the UK, more than BL employed in Mrs. Thatcher’s time.

Increase trade with Korea, check China: “The People’s Republic of China is ever more confident, challenging U.S. naval ships in the South China Sea and the U.S. dollar in international forums. China has displaced America as the No. 1 trading partner with leading East Asian states. How do the Obama administration and Democratic Congress respond? By retreating economically from the region. Barack Obama called the U.S.-South Korean free trade agreement ‘badly flawed’ and urged the Bush administration not to even submit it for ratification. U.S. Trade Representative Ron Kirk calls the agreement ‘unacceptable.’ Although increased trade with South Korea is ‘one of the biggest opportunities we have,’ he affirms that the administration ‘will step away from that if we don’t get it right.’ This policy represents economic and geostrategic folly. Washington should be expanding American investment and trade opportunities in East Asia. The starting point should be to ratify the South Korean trade agreement.”

For more postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, 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 or here or here

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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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Jesus on Property Rights and Resource Preservation

Perhaps the most important proposition in the economics of property rights is that people will not care for a resource they do not own as well as they will care for a resource they do own. It is amazing how much fashionable economic belief — for example, nearly everything ever advanced in support of socialism, as well as the bulk of what passes for environmentalist policy proposals — fails to take adequate account of this virtually axiomatic proposition.

But don’t take my word for it — or even the word of any of my illustrious former collegues at the University of Washington. Take the word of Jesus of Nazareth.

In the tenth chapter of the Gospel According to John, Jesus is trying to make a point, but his listeners are not getting it, so he finally gives them a parable he can be sure they will understand (verses 11-13):

The good shepherd lays down his life for the sheep. The hired hand, who is not the shepherd and does not own the sheep, sees the wolf coming and leaves the sheep and runs away — and the wolf snatches them and scatters them. The hired hand runs away because a hired hand does not care for the sheep. I am the good shepherd. I know my own and my own know me.

Hired hands must be monitored closely if the owner is to prevent them from diminishing or destroying the value of the capital he has provided for them to work with. In postbellum southern agriculture, for example, plantation owners monitored sharecroppers, to whom they furnished mules, more closely than they monitored tenants who furnished their own mules.

More HERE

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Don't Confuse Justice and Charity

by Michael Medved

I was very pleased to read the article below as it largely echoes a point I made in 2006. The text I used was, however, Exodus 23:3. But to find it repeated in the "Second Law" (Deuteronomy) is of course no surprise -- JR

The core mistake of liberalism involves the confusion of charity and justice. How do we know it’s a disastrous error to blur the distinction between these two timeless virtues? Because the Bible specifically warns us against it.

Last Saturday, Jewish people around the world read Leviticus 19:15 as part of the weekly “Torah Portion” – the specific segment of the Five Books of Moses assigned since ancient times for synagogue recitation on this particular Sabbath of the calendar. The text declares (in the best modern translation): “You shall not commit a perversion of justice; you shall not favor the poor and you shall not honor the great; with righteousness shall you judge your fellow.”

The unmistakable commandment to avoid favoring the poor comes as something of a shock: doesn’t the Bible, and especially the New Testament, repeatedly remind us to deal generously with the less fortunate, and to care for widows, orphans and paupers in general?

The truth is that the Bible – both Old and New Testament—views compassion as a personal obligation rather than a public priority for governmental or judicial policy. The all important warning against tilting the scales of justice toward the poor appears just three verses before the most famous single injunction in all of Scripture: “You shall love your neighbor as yourself.” (Leviticus, 19:18).The juxtaposition of God’s directives makes it clear that not even love for your neighbor can allow “perversion of justice.” Justice and charity must remain distinct—not just separate, but in some ways opposite polarities.

The importance of this distinction particularly concerned the great Rashi (Rabbi Shlomo Ytizchaki, 1040-1105), considered the most authoritative expositor of millennia-old oral traditions on the Biblical text. More than 900 years ago, Rashi addressed the verse in question and faced the puzzle of why the Bible forbids bias on behalf of the poor even before it forbids favoritism for the rich. “You shall not say, ‘This man is poor, and the rich man is obliged to support him,” the eminent Rabbi wrote. A judge is strictly prohibited from saying “I shall favor the poor man in this suit, and thus he will make a respectable living.” As a 20th Century rabbi (Nosson Scherman) succinctly summarized the point: “The Torah insists that justice be rendered honestly; charity may not interfere with it.”

Ironically, the Jewish world focused on this point this year in precisely the same week (the first Sabbath in May) in which President Obama faced his first opportunity to appoint a new justice to the Supreme Court of the United States. In some of his campaign comments about criteria for such an appointment, the future president specifically indicated he wanted a judge with a “heart” for the poor and downtrodden, and who would concentrate on their specific interests and needs—in other words, precisely the sort of jurist prohibited by Leviticus.

Allowing justice to be twisted by emotions of sympathy for the unfortunate is no less corrupting than bending toward the rich and powerful out of a sense of awe or admiration, or in hopes of personal advancement. In both cases, feelings block the scrupulous application of rules of logic and fairness. In both cases, Jewish tradition suggests that the judge (or any other government official) has been, in effect, bribed.

On this point, leaders of the liberal Jewish establishment would no doubt object to the whole line of scripture-based reasoning, making the point that the Hebrew word for justice – “tzedek” – is directly related to the colloquial term for charity – “tzedaka.” This linguistic point has allowed many generations of Jewish fundraisers to make the pitch that for us, charitable giving isn’t a matter of special kindness or generosity, but an obligation of simple justice. As the Book of Deuteronomy (16:20) famously and resonantly declares: “Justice, justice shalt thou pursue.”

Actually, the better translation for this celebrated phrase (“Tzedek, tzedek teerdof” in Hebrew) would be “Righteousness, righteousness you should pursue.” When the book of Leviticus bans bias toward the poor as a “perversion of justice” the word used isn’t “tzedek” (best rendered as “righteousness”) but rather “Mishpat” (best rendered as “law” or “judgment”). Righteousness constitutes a personal goal for each individual – and very much includes charitable giving, and acts of loving-kindness for the impoverished and powerless. “Law” (or “judgment”) on the other hand describes an expression of organized society or governmental authority, which should treat all society’s members, rich and poor alike, in a non-prejudicial and neutral manner.

This distinction between personal obligations and official policy brings important implications for current controversies. As individuals, we should never try to look on Bill Gates and a homeless beggar as equally deserving of our sympathy or generosity. At the same time, twisting the law or administrative policy to favor the beggar in a dispute with Bill Gates would require the same abandonment of impartiality as privileging the Software Sultan over the pauper.

Does this mean that a system of progressive taxation constitutes the blurring of justice and charity that the Bible decries? The answer is almost certainly yes, and helps explain why so many conservatives yearn for a system of flat taxes or consumption taxes to replace the current nightmare of the IRS. This doesn’t mean that Mr. Gates would ever pay the same tax bill as our imaginary homeless gent--- if they both paid 10%, Mr. Microsoft would still pay vastly more in precisely the same ratio that he earned vastly more. But a system under which top earners get slammed with a 39.6% rate (as they will if Obama lets Bush tax cuts lapse, as promised) and struggling householders pay nothing, but actually get checks from the government totaling thousands of dollars (through the Earned Income Tax Credit and other scams), very clearly represents a society organized to favor the poor in a way that violates unbiased justice.

At a time when the outspoken religious left wants to claim scriptural sanction for its redistributionist schemes, when President Obama searches for a judge who will follow her compassionate heart rather than the Constitution, it’s appropriate to recall the timeless and necessary Biblical separation between public justice and private compassion.

SOURCE

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ELSEWHERE

"Torture" lawyers not likely to be charged: “Bush administration lawyers who approved harsh interrogation techniques of terror suspects should not face criminal charges, Justice Department investigators say in a draft report that recommends two of the three attorneys face possible professional sanctions. The recommendations come after an Obama administration decision last month to make public legal memos authorizing the use of harsh interrogation methods but not to prosecute CIA interrogators who followed advice outlined in the memos.”

DHS: “Lexicon” source a “maverick office”: “The Department of Homeland Security is reining in a ‘maverick’ division of the agency following criticism of a report it issued that details domestic ‘extremists’ ranging from anti-tax movements to pro-environment groups, a DHS official told FOX News on Tuesday. The report, released in March and recalled within hours, was on top of a controversial document the same office produced last month that said U.S. veterans were ripe for recruitment by terrorist groups. The quickly withdrawn report, titled the ‘Domestic Extremism Lexicon,’ comes from the department’s Office of Intelligence and Analysis, the same unit that produced the report on right-wing extremists recruiting vets. The document, first uncovered by The Washington Times, uses a broad brush to define terms used when analyzing dozens of supposedly extremist ideologies inside the United States.”

Obama is exactly wrong: "In the Austrian view, depressions come about because expansion of bank credit results in malinvestments. Because these need to be liquidated, the government should follow a "do nothing" policy that allows the market to return to normal conditions. When this policy was followed, recovery from depression took no more than a few years, in the 1873 depression, in contrast to the total failure to recover during the New Deal. The results were even better in the 1920–1921 depression, when both Wilson and Harding slashed government spending: "the 1920–1921 depression was so short-lived that most Americans today are unaware of its existence."

Can Obama be called an economic fascist? : “It is dangerous in this day and age to use the word ‘fascism’ lightly. Liberals sling around the term ‘fascism’ without regard to its meaning — for the left, ‘fascism’ applies to everything from religious social perspectives to conservative tax cut prescriptions. But economic fascism has a precise, defined meaning. And Barack Obama’s economic policy fulfills that meaning in every conceivable way.”

Overeducated redneck: “I’m generally certain that I’m considerably more intelligent, educated, and informed than those calling me ignorant (and for that matter, they are almost certainly racists whether they realize it or not; and I am definitely not; but that’s another post entirely); but that doesn’t address the point I want to make here. To these people, redneck is an insult. So is ‘cowboy’ for that matter, or really anything to do with rural America or ‘country.’ This is of course another form of class warfare, and identity politics. By calling me a redneck, they believe they are dismissing me, my ideas, my opinions, and the facts I present; as not credible, irrelevant, or below them. Well … to me, call me a redneck, and that’s a compliment. They didn’t intend it that way, but it is.”

For more postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, 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 or here or here

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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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Capitalism Mafia style is now the system

Listening to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, we get a sense of the "new capitalism" that our new Democratic leadership tells us America needs.

Frank recently praised Bank of America chairman (now ex-chairman) Ken Lewis for acting in "the public interest" for caving in to bribes and threats from former Treasury Secretary Hank Paulson and Federal Reserve chairman Ben Bernanke regarding B of A's takeover of Merrill Lynch. Lewis wanted to back out the deal last year when he discovered the massive scope of Merrill's losses. But Paulson and Bernanke decided that Merrill shouldn't fail, so they bribed Lewis with $20 billion of taxpayer funds, instructed him to conceal the agreement from his shareholders, and told him his job would be on the line if he didn't play ball -- which he did.

These sordid details have come to light in an investigation being conducted by New York State Attorney General Andrew Cuomo. So if such behavior is what Barney Frank calls economic patriotism, what might constitute subversive behavior?

When Congress moved last year to politically engineer changes in terms of existing mortgages in the name of bailing out distressed homeowners, Bill Frey, who manages a fund that holds mortgage-backed securities, protested. Frey told the New York Times, "Any investor in mortgage-backed securities has a right to insist that their contract be enforced."

Contracts? Private property? That's the old capitalism. Frank fired off a letter to Frey saying he was "outraged...that you are actively opposing our efforts to achieve diminution in foreclosures by voluntary efforts." Frank then clarified his idea of "voluntary" by summoning Frey to testify in Washington, noting that "if this cannot be arranged on a voluntary basis, then we will pursue further steps."

The House has passed legislation, which is now in the Senate, containing Frank's idea of "diminution in foreclosures by voluntary efforts." It amounts to -- what a surprise -- taxpayer funded bribes to abrogate existing mortgage contracts and provisions for legal protection for doing so. Frey and others managing funds for investors holding billions in mortgage-backed securities are fighting back. We're not talking Bernie Madoff here. We're talking about funds that have invested in these securities on behalf of pension funds and 401Ks.

Financial institutions -- banks like B of A and Wells Fargo -- originate mortgages and then sell them off to be sliced and diced up into bonds that individual investors can purchase. This financial innovation has been a boon for providing capital and liquidity to our mortgage markets. The originating bank, however, stays in the picture to service the loan, collecting and processing the payments. Contractual agreements exist between the bank and the bondholders that this will be done in good faith, according to the terms of the original mortgage.

For a host of reasons, mostly massive government meddling and social engineering, the mortgage market exploded and thus, we've got homeowners who can't make payments. The House passed bill proposes to bail these folks out by paying banks servicing the mortgages $1000 for each one they re-finance, cutting interest rates and payments. Those who actually own the loans -- the bondholders -- are left out to pasture. And, the bill protects servicing banks from lawsuits to which they would normally be exposed for breaking their contracts.

So taxpayers will subsidize banks to refinance the bad loans they originated but no longer own, homeowners who borrowed beyond their means get bailed out, and investors -- the bondholders -- are left to bear the costs. On top of this, many of these same banks originated second mortgages on these same homes. The second mortgages, which the banks still own, bear even higher interest rates because they are allegedly more risky. Yet, they will be left secure and undisturbed.

Aside from the costs that our society will bear as law and contracts no longer have meaning, Frey rightly points out that it all will just make future mortgage borrowing more expensive. Who will take risks to lend when politicians can change contracts at the drop of a hat?

Welcome to the new capitalism. Where politicians rule, irresponsible behavior is rewarded, and theft is legal.

SOURCE

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Shipping Jobs Overseas?

A common refrain among protectionists, economic nationalists and other advocates of strong government intervention in the economy is that so-called “big corporations” are “shipping jobs overseas.” This charge is used particularly often with regards to manufacturing jobs, where the specter of jobs fleeing en masse to China, India and Mexico is described in breathless terms.

Whether the goal is “renegotiating” (or ending altogether) free trade agreements like NAFTA, bailouts of domestic industries or some sort of tax code manipulation to “reward” companies who “create American jobs,” the bogeyman of choice is what Ross Perot dubbed the “giant sucking sound” in the 1990s—particularly when a politician is campaigning in former manufacturing centers in Rust Belt areas of Pennsylvania, Ohio and Michigan. Along with the loss of jobs themselves, the so-called “trade deficit” is often mentioned, noting that it is at record highs and that it somehow signifies loss of American jobs and a manufacturing base; foreign capital investment is often also a target of political derision.

The facts, however, continue to show otherwise. As documented by the pro-trade Center for Trade Policy Studies, foreign investment by multi-national companies tends to be focused on opening up new markets to goods and services—to making these companies more profitable by reaching new customers—rather than a method for shipping out American jobs and moving capital out of the United States.

One by one, Director of the Center for Trade Policy Studies Dan Griswold’s research punctures the myths promulgated by the anti-trade crowd. Worried about the U.S. manufacturing base moving factories to China, India and Mexico? Then consider this: “Between 2003 and 2007, U.S. manufacturing companies sent an average of $2 billion a year in direct investment to China and $1.9 billion to Mexico”; meanwhile, U.S. corporations were investing $165 billion per year in the USA. An additional $15 billion per year was being invested in manufacturing in the United States by foreign corporations during this time. These data show that while, yes, American companies were spreading their manufacturing wings overseas, they were investing more than 80 times as much here at home.

But what about the loss of manufacturing jobs? True, the U.S. workforce employed in manufacturing shrank by 3 million in the years 2000-2006. But as shown above, corporations were making capital investments in the United States; those investments, rather than workers, were in technology and automation. Those jobs weren’t being shipped overseas, they were being replaced with more efficient technology, creating other high-tech jobs elsewhere in the labor market. Meanwhile, “an increase in 172,000 jobs at U.S.-owned affiliates in China was partially offset by an actual decline of almost 100,000 jobs at affiliates in Mexico.”

One by one, the justifications for increased government intrusion in the marketplace fall by the wayside when examined more closely, when facts are employed rather than innuendo. A free market and free trade, unencumbered by government interference, management or directives is still the best way to promote prosperity.

SOURCE

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ELSEWHERE

Rather silly PC guesswork: Fragments of bone from Europe of around 40,000 years ago have been used to "reconstruct" what ancient Europeans looked like. The reconstructor has given his reconstruction brown skin even though modern Europeans are all pale-skinned and he admits that there is no way of determining the skin colour from the bone fragments.

I have put up a few things on my Paralipomena blog in the last few weeks -- for anybody who fancies a bit of offbeat reading.

Some charming Muslim on Muslim action: "At least 41 people have been killed in an attack on a wedding party in a village in southeast Turkey, an official from the governor's office said. At least three others were wounded in the shooting in the village of Bilge, the official, who requested anonymity, said. In Ankara, Prime Minister Recep Tayyip Erdogan was briefed about the incident by Interior Minister Besir Atalay, Anatolia news agency reported. There was no official word on who might be behind the shooting. Separatist Kurdish rebels are active in southeast Turkey, where they have waged a 24-year campaign for self-rule. Blood feuds are also frequent in the region." [It's all Israel's fault, of course]

Communists lose one in Nepal: "Nepal's Maoist Prime Minister Prachanda announced his resignation yesterday, plunging the country into a political crisis triggered by a stand-off between his ex-rebels and the army chief. In a televised address to the nation, Mr Prachanda said he was stepping down in response to an "unconstitutional and undemocratic" move by Nepal's President to stop the elected Maoist Government from sacking the head of the army. He also warned that the impoverished nation's 2006 peace deal, which ended a decade of civil war, was at risk. The Maoist Government on Sunday fired the army chief, General Rookmangud Katawal, for refusing to integrate 19,000 former Maoist rebel soldiers into the regular army, as stipulated by the peace accord. But President Ram Baran Yadav, a member of the main opposition party, yesterday told the head of the army - traditionally a bastion of Nepal's elite and the former monarchy - to stay put. "The move by the President is an attack on this infant democracy and the peace process," said Mr Prachanda, a former school teacher who led the insurgency before signing up for peace. Since the elections, the Maoists have managed to carry through with their pledge to abolish the monarchy but complain Nepal's traditional ruling elite is blocking other key reforms. Centrist parties, meanwhile, appear to have sided with the army against what they see as an attempt by the Maoists to assume dictatorial powers."

House Democrats leave Gitmo closing money out of bill: “Amid fears that terror suspects could be brought to the U.S., House Democrats on Monday rebuffed the Obama administration’s request for $50 million to relocate prisoners from the detention facility at Guantanamo, Cuba. House Appropriations Committee Chairman David Obey, D-Wis., dropped the request from a $94.2 billion measure funding military and diplomatic efforts in Iraq and Afghanistan through the fall.”

ACORN charged in voter fraud case: “Nevada authorities filed criminal charges Monday against the political advocacy group ACORN and two former employees, alleging they illegally paid canvassers to sign up new voters during last year’s presidential campaign. ACORN denied the charges and said it would defend itself in court. Nevada Attorney General Catherine Cortez Masto said the Association of Community Organizations for Reform Now had a handbook and policies requiring employees in Las Vegas to sign up 20 new voters per day to keep their $8- to $9-per-hour jobs.”

Congress leery of Obama’s plan on tax loopholes: “President Barack Obama promised sternly on Monday to crack down on companies ‘that ship jobs overseas’ and duck U.S. taxes with offshore havens. It won’t be easy. Democrats have been fighting — and losing — this battle since John F. Kennedy made a similar proposal in 1961. Obama’s proposal to close tax loopholes was a reliable applause line during the presidential campaign, but it got a lukewarm response Monday from Capitol Hill.” [Any guesses about how much money Congressmen have got offshore? You've got to put bribes SOMEWHERE! Only William Jefferson was silly enough to put it in his freezer]

Obama’s empathetic judicial poison: “Barack Obama’s statement that ‘empathy’ would be a key qualification he’d look for in a nominee to replace David Souter on the Supreme Court is not simply soft liberal thinking, it’s a direct attack on the rule of law, an abrogation of Obama’s oath of office — and entirely consistent with Obama’s prior statements.”

White House Council on Men and Boys: The right thing to do: “One of the greatest failings of the Great Society programs of the 1960s was the devastating blow they dealt to low-income African-American families. And it’s no secret how all this happened. Thanks to President Johnson’s signature legislation, newly-minted social welfare programs provided an array of services and benefits that were designed to help single moms. But these programs proved to afford powerful incentives for women to become pregnant, and then make sure the dad didn’t hang around too long. The effects were devastating as they were dramatic.”

High-speed rail is no solution: “The facts do not bear out several aspects of President Barack Obama’s desire to push high-speed rail projects with federal resources ($8 billion in the economic stimulus package, another $5 billion in his 2010 budget) — chiefly, that the rail projects are more efficient and more environmentally friendly than modes of travel now widely in use. Saving energy and reducing pollution are worthy goals, and if high-speed trains could achieve these goals, the president’s plan might be a good one. But since they cannot, it isn’t.”

For more postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, 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 or here or here

****************************

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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Civil Rights Commission Members Urge “NO” Vote on Federal Hate Crimes Bill

There is little doubt that this bill will soon become law. As the article below points out, however, the implications are alarming

Four members of the U.S. Civil Rights Commission urged Congress not to pass the federal hate crimes bill (H.R. 1913). In an April 29 letter to Congressional leaders, they point out that it would circumvent Constitutional protections against double jeopardy, giving the federal government the power to reprosecute people in federal court even after they have been found innocent of rape and other “hate crimes” in state court:

“We believe that LLEHCPA will do little good and a great deal of harm. Its most important effect will be to allow federal authorities to re-prosecute a broad category of defendants who have already been acquitted by state juries–as in the Rodney King and Crown Heights cases more than a decade ago.”

“We regard the broad federalization of crime as a menace to civil liberties. There is no better place to draw the line on that process than with a bill that purports to protect civil rights.”

“While the title of LLEHCPA suggests that it will apply only to “hate crimes,” the actual criminal prohibitions contained in it do not require that the defendant be inspired by hatred or ill will in order to convict. It is sufficient if he acts “because of” someone’s actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity or disability. Consider:

*Rapists are seldom indifferent to the gender of their victims. They are virtually always chosen “because of” their gender.

*A robber might well steal only from women or the disabled because, in general, they are less able to defend themselves. Literally, they are chosen “because of” their gender or disability.”

“If all rape and many other crimes that do not rise to the level of a “hate crime” in the minds of ordinary Americans are covered by LLEHCPA, then prosecutors will have “two bites at the apple” for a very large number of crimes.”

We wrote earlier about how backers of the federal hate-crimes bill want to use it to reprosecute people who have already been found innocent, and to prosecute people whom state prosecutors decline to charge because the evidence against them is so weak. Supporters of the bill have given only lame rationalizations for why state not-guilty verdicts should not be respected. (Some have even made the strange claim that the defendants in the Duke Lacrosse case, whom the North Carolina attorney general later admitted were actually innocent, should have been reprosecuted in federal court).

Such reprosecutions fall within a loophole in Constitutional protections against double jeopardy known as the “dual sovereignty” doctrine. But ironically, they violate Article 14 of the International Covenant on Civil and Political Rights — a treaty that many of the bill’s backers harp on to push liberal causes, such as restrictions on the death penalty and antiterrorism measures. Article 14’s ban on double jeopardy has no “dual sovereignty” loophole, unlike the U.S. Constitution. That is an additional reason to be skeptical of the hate-crimes bill, which is known as the Local Law Enforcement Hate Crimes Prevention Act of 2009 (LLEHCPA).

SOURCE

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The Next Housing Bust

Everyone knows how loose mortgage underwriting led to the go-go days of multitrillion-dollar subprime lending. What isn't well known is that a parallel subprime market has emerged over the past year -- all made possible by the Federal Housing Administration. This also won't end happily for taxpayers or the housing market.

Last year banks issued $180 billion of new mortgages insured by the FHA, which means they carry a 100% taxpayer guarantee. Many of these have the same characteristics as subprime loans: low downpayment requirements, high-risk borrowers, and in many cases shady mortgage originators. FHA now insures nearly one of every three new mortgages, up from 2% in 2006.

The financial results so far are not as dire as those created by the subprime frenzy of 2004-2007, but taxpayer losses are mounting on its $562 billion portfolio. According to Mortgage Bankers Association data, more than one in eight FHA loans is now delinquent -- nearly triple the rate on conventional, nonsubprime loan portfolios. Another 7.5% of recent FHA loans are in "serious delinquency," which means at least three months overdue.

The FHA is almost certainly going to need a taxpayer bailout in the months ahead. The only debate is how much it will cost. By law FHA must carry a 2% reserve (or a 50 to 1 leverage rate), and it is now 3% and falling. Some experts see bailout costs from $50 billion to $100 billion or more, depending on how long the recession lasts.

How did this happen? The FHA was created during the Depression to help moderate-income and first time homebuyers obtain a mortgage. However, as subprime lending took off, banks fled from the FHA and its business fell by almost 80%. Under the Bush Administration, the FHA then began a bizarre initiative to "regain its market share." And beginning in 2007, the Bush FHA, Congress, the homebuilders and Realtors teamed up to expand the agency's role.

The bill that passed last summer more than doubled the maximum loan amount that FHA can insure -- to $719,000 from $362,500 in high-priced markets. Congress evidently believes that a moderate-income buyer can afford a $700,000 house. This increase in the loan amount was supposed to boost the housing market as subprime crashed and demand for homes plummeted. But FHA's expansion has hardly arrested the housing market decline. The higher FHA loan ceiling was also supposed to be temporary, but this year Congress made it permanent.

Even more foolish has been the campaign to lower FHA downpayment requirements. When FHA opened in the 1930s, the downpayment minimum was 20%; it fell to 10% in the 1960s, and then 3% in 1978. Last year the Senate wisely insisted on raising the downpayment to 3.5%, but that is still far too low to reduce delinquencies in a falling market.

Because FHA also allows borrowers to finance closing costs and other fees as part of the mortgage, the purchaser's equity can be very close to zero. With even a small drop in prices, many homeowners soon have mortgages larger than their home's value -- which is one reason FHA's defaults are rising. Every study shows that by far the best way to reduce defaults and foreclosures is to increase downpayments. Banks know this and have returned to a 10% minimum downpayment on their non-FHA loans.

In a rational world, Congress and the White House would tighten FHA underwriting standards, in particular by eliminating the 100% guarantee. That guarantee means banks and mortgage lenders have no skin in the game; lenders collect the 2% to 3% origination fees on as many FHA loans as they can push out the door regardless of whether the borrower has a likelihood of repaying the mortgage. The Washington Post reported in March a near-tripling in the past year in the number of loans in which a borrower failed to make more than a single payment. One Florida bank, Great Country Mortgage of Coral Gables, had a 64% default rate on its FHA properties.

The Veterans Affairs housing program has a default rate about half that of FHA loans, mainly because the VA provides only a 50% maximum guarantee. If banks won't take half the risk of nonpayment, this is a market test that the loan shouldn't be made.

These reforms have long been blocked by the powerful housing lobby -- Realtors, homebuilders and mortgage bankers, backed by their friends in Congress. They claim FHA makes money for taxpayers through the premiums it collects from homebuyers. But keep in mind these are the same folks who said taxpayers weren't at risk with Fannie Mae and Freddie Mac.

A major lesson of Fan and Fred and the subprime fiasco is that no one benefits when we push families into homes they can't afford. Yet that's what Congress is doing once again as it relentlessly expands FHA lending with minimal oversight or taxpayer safeguards.

SOURCE

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All the News Not Fit to Print

It's no wonder that newspapers are going out of business when it's become obvious for anyone with a scintilla of honesty that, too often, their "reporting" -- intentionally or not -- is entirely informed by liberal group think. Columnist Andrew Smith, writing in the Nova Scotia News, lists the most dramatic examples of Barack Obama's failures in his first 100 days that you're not likely to hear about anywhere except Fox News. Here's a sample:

•Obama’s first two major bills alone, the "stimulus" and "omnibus," cost nearly twice as much as was spent on Iraq over six years – $1.2 trillion vs. $650 billion.

•Obama abandoned his campaign promise of "a net spending cut," his first annual deficit – not counting bailouts – being three times the worst deficit under President George W. Bush.

•Obama’s objective in his first G20 summit – commitments to spend our way to prosperity with massive stimulus boondoggles across the G20 – was rejected out of hand.

•Obama’s objective in his first NATO summit – commitments to combat troops for Afghanistan from "our European allies," which Obama and his party imagined were ready and willing to fight if only someone "enlightened" like him were running things – was predictably refused, with some more European non-combat contingents offered as a token.

•Obama’s Defence Department announced cuts of $1.4 billion to missile defence, the day after North Korea test-fired its long-range, multi-stage ballistic missile.

•Obama’s economics were criticized by Warren Buffet, whose endorsement had been candidate Obama’s highest economic credential.

•Obama reversed the free trade Bush policy that had allowed about 100 Mexican tractor-trailers into the United States, which the Mexican government immediately used as an excuse to levy tariffs on 90 American goods amounting to $2.4 billion in U.S. exports.

•Obama’s "tax cuts for 95 per cent" turned out to mean $13 a week from June to December, to be clawed back to $8 a week in January – as compared with President Bush’s 2008 tax rebates of $600 to $1,200 plus $300 per child, which were notably scoffed at during the election campaign by Michelle Obama.

This piece is a must-read. And its contents should be memorized by every Republican in Washington and repeated ad nauseam.

SOURCE

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ELSEWHERE

The authoritarian mindset: “When encountering those who have a desire to tell others what to do, to dictate to them, one can try to classify them into different categories. C. S. Lewis did so by discussing the difference between the dictator who dictates out of greed and the one who dictates out of a desire to help others. The former, he said, was preferable because his greed could sometimes be sated.”

Alternative voting methods needed?: “The reasons to change the way we vote are numerous. A fundamental reason to change it is that Americans tend to vote AGAINST candidates rather than FOR them. We have shaped the idea of democracy into an expression of our personal fears. We seem to feel stronger about candidate’s who we DON’T want in an office than we do about those we support. Usually this is perfectly understandable, as the candidates we have to choose from are often not that good, so it is often easier to identify candidates who are LEAST in line with what we want than it is to identity ones whom we can wholeheartedly support. One obvious problem with this method is that when people are primarily voting AGAINST a candidate, they are afraid to ‘waste’ their vote by casting it for someone who they might approve of but who has no actual chance of winning.”

Nudging revisited: “Ideas do have consequences and this is quite evident with the current administration’s adoption of what has been labeled — or mislabeled — ‘libertarian paternalism.’ It was two political economists, Richard Thaler and Cass Sunstein, who proposed the notion that what government should do is not intervene in the market forcefully, the way champions of the New Deal would advocate, but by establishing numerous incentives that would nudge people to do the right thing. … The approach favored by Thaler and Sunstein is one that is gaining much respect from center-left liberals because it avoids the failed and not too popular policies of aggressive interventionism, the sort that in fact had a lot to do with America’s current economic mess.”

FDR’s Social Security paradox: “If Social Security is so wonderful, why were people forced to participate, why was it set up as a monopoly, and why did it dump ever-larger costs onto the backs of future generations? There never was a popular demand for Social Security, even during the Great Depression. Few Americans were interested in the kind of government-run program that the German politician Otto von Bismarck had introduced in Europe.”

For more postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, 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 or here or here

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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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