25 June 2012

Update no.549


Update from the Heartland
No.549
18.6.12 – 24.6.12
Blog version:  http://heartlandupdate.blogspot.com/
To all,

The follow-up news items:
-- The leaks of sensitive national security information by “unnamed officials” continue to keep the public debate at full flame [528, 546, 547].   The latest log on the fire:
“U.S., Israel developed Flame computer virus to slow Iranian nuclear efforts, officials say”
by Ellen Nakashima, Greg Miller and Julie Tate
Washington Post
Published: June 19, 2012
The attribution for creation and deployment of the Flame virus to the United States and Israel serves neither national security nor government transparency.

I noted last week the recent British Columbia Supreme Court ruling – Carter v. Canada (Attorney General) [2012 BCSC 886] – declaring the state and federal laws against “physician-assisted death” unconstitutional [548].  The decision is an exhaustive treatise on the subject.  I am not even halfway through it.  My reading and research process may take another week or two for completion, for those who may be waiting for my opinion.

I always find it a bit humorous that the other guy’s actions are always unconstitutional or unlawful, never a contrast of interpretation or definition.  Solutions cannot be found when intransigence calcifies one side or the other, or both.  The paucity of moderation and compromise in one group yields only stagnation and a cesspool.

News from the economic front:
-- The U.S. Federal Reserve Open Market Committee voted 11-1 to extend “Operation Twist” – the program to sell short-term bonds while purchasing longer-term securities - in order to support the slowing US economic recovery.  The Fed refrained from a more aggressive plan to ease monetary policy, and indicated they were “prepared to take further action,” if necessary, and they planned to keep short-term interest rates at “exceptionally low levels” at least through late 2014.  The Fed’s actions suggest a bleaker picture of the U.S. economic recovery than it had at its last gathering two months ago, due to the weakening of employment and the continuing financial stress associated with the eurozone debt crisis.
 -- The Financial Times reported that the European Central Bank (ECB) is considering steps to relax its collateral rules for central-bank loans in an effort to ease strains on commercial banks in southern Europe.  If true, the move would ease strain but increase risk given the precarious state European banks.
-- Independent auditors calculated Spain's troubled banks could need as much as €62B (US$79B) in new capital, while Bank of Spain Deputy Governor Fernando Restoy noted the audit was a worst-case scenario, far below the €100B the euro zone has allocated for Spain's banking sector, which is struggling under toxic loans and assets.
-- Moody’s Investors Service downgraded the ratings of 15 of the biggest global banks, adding more pressure on their borrowing costs and triggering multi-billion dollar collateral calls.  Morgan Stanley, seen as the most vulnerable, saw its rating cut from A2 to Baa1, three notches above “junk” status.
-- International Monetary Fund Managing Director Christine Madeleine Odette Lagarde (née Lallouette) advocated for eurozone leaders to prevent the single currency from deteriorating further by considering the resumption of bond buying by the ECB, pumping bailout money directly into teetering banks, and challenging the austerity recovery plan of German Chancellor Angela Dorothea Merkel (née Kasner).

Comments and contributions from Update no.548:
Comment to the Blog:
“Donald Rumsfeld is an author I will not read.
“I agree with your position on women in specialized military units. The question must remain who can best do the job and nothing else.
“The situation of illegal (and other) immigrants grows ever stranger. Someone has pointed out to me the situation of people from India and other nations who do a great deal of the information technology work in the United States. Apparently they receive a certain level of collateral damage from the popular crusade against Latinos. The Latinos typically take jobs nobody else wants; other foreigners take the more-desirable information technology jobs, due to the lack of Americans with the appropriate skills. Meanwhile, no realistic or accurate information seems to reach ordinary Americans.
“The Michigan Legislature’s dimwitted response to the apt use of the word ‘vagina’ sparks memories of the Michigan Militia. What ever happened to them?
“Economic events continue to move in confusing ways at high speeds.
“Re the Stanford sentence: I care little whether he was given 80 years or 180, so long as his sentence exceeds his lifespan.”
My response to the Blog:
Calvin,
            Re: Rumsfeld . . . as you wish.
            Re: Women in combat.  Agreed!  I’m glad I have at least one supporter.
            Re: immigration.  I’m not sure I understand what you mean by “collateral damage?”  There have always been special categories for immigrants with special skills or attributes desired by Congress. 
            Re: Michigan Militia.  Publicly available information suggests the MM is alive and well . . . unfortunately.
            Re: economy.  Indeed, which is why I am quite cautious when it comes to money.
            Re: Stanford sentence.  Spot on!  The problem with such criminal sentences is his eligibility for parole; it is that threshold we want to be well beyond his remaining lifespan.  He should never know freedom again.
 . . . follow-up comments:
“The ‘collateral damage’ to which I referred is something a friend of mine came across while researching an essay. It seems that people from India and other foreign places are encountering visa/deportation issues even though they have done everything right and are exceptionally valuable workers. I see that as an outcome of the attack intended to remove Latinos from US cities. I am reasonably sure that the concept of welcoming valuable workers continues, but I imagine that much of the action by now results from the general attitude toward immigrants fostered by less-than-reasonable people whose picture of immigrants comes from media depictions of people crossing the Rio Grande late at night; those folks have no awareness that from people start careers in Hyderabad and emigrating by air to high-paying jobs in Silicon Valley. I am particularly aware of those Indian immigrants because of a temporary assignment where I trimmed their resumes to fit the American labor market. Even the least of those made about 40% more than I have ever earned.
“I find it interesting that the Michigan Militia gets little to no publicity in the ‘War on Terrorism.’  That tends to support the common idea that the "war" is on Islam and/or Arabs.”
 . . . my follow-up response:
Calvin,
            Re: collateral damage.  Thank you for the explanation.  Your observations seem to suggest a conspiracy against Latinos.  I have a hard time accepting such a notion.  It is not so easy for the Press to depict people who exceed their visas.  Illegal immigration is far more complex than crossing the Rio Grande.  When I had the responsibility of moving a British company to the U.S., we had to deal with a lot of immigration issues, but we got through them successfully; we got five times more engineers and engineering support folks to move than originally estimated.  Even today, we have a significant contingent of Indian engineers supporting the company.  All that said, you make every good points for equal treatment under the law.
            Re: “Michigan Militia.”  The myriad of militant groups in the U.S. are far more interested in intimidation or puffing up their chests with how tough they are.  They are certainly not carrying out terrorist events to extend their political agenda.  Most of the “terrorist” events carried out by American militants are more like former Aryan Nations crazy Buford Furrow [10.August.1999] than the 9/11 attack.  I simply cannot see any war on Islam or Arabs . . . quite the contrary actually.
   “That’s just my opinion, but I could be wrong.”
Cheers,
Cap

My very best wishes to all.  Take care of yourselves and each other.
Cheers,
Cap                 :-)

2 comments:

Calvin R said...

I read that article on the US-Israeli cyber-attacks on Iran. That particular story did not read as someone exposing something of which they disapproved. It resembled a geopolitical planned leak much more closely. Apparently, it presented two messages: (a) that the United States has so many remaining cyber-weapons that it will not suffer from the non-revelations about Stuxnet and Flame, and (b) that Israel is being publicly reprimanded for acting on its own, thus leading (so the message goes) to the exposure of Flame. Government agencies, especially intelligence agencies, often communicate “unofficially,” in ways that cannot be litigated. That’s what occurred in this article.
On the financial front, the European Central Bank (ECB) has moved to increase risk. Does anyone at the ECB remember that excess risk got us all into this mess?
Also, Moody’s Investors Service has downgraded 15 of the biggest banks. That’s fascinating. Does Moody’s think governments will no longer bail them out? I would like to know the rationale behind that.

Cap Parlier said...

Calvin,
Re: national security leaks. Smells like a political leak; it does to me as well. However, the reason used by sources of such leaks is irrelevant to me; the action is injurious and verging upon treasonous. The USG controls the information; they have the authority to declassify anything they wish via a well-known, established process. The use or existence of such weapons is often a simple fact. The Islamic Republic of Iran has been quite accomplished at carrying out violent acts via surrogates and other agents without claiming or connecting those actions to their government. The Obama administration appears to be doing what the Bush administration did in the Plame-Wilson case. They were both wrong!

Re: ECB. I believe they understand the risk, but they are caught between a rock and a hard spot. I just hope they are correct.

Re: Moody’s ratings. I do not know. I suspect they are reflecting the reality that governments associated with those banks are far less capable of intervention, thus their risk has gone up. These news items indicate the recovery is likely to be long and slow.
Cheers,
Cap