Update from the Heartland
No.559
27.8.12 – 2.9.12
Blog version: http://heartlandupdate.blogspot.com/
To all,
Governor Willard Mitt Romney of Massachusetts and
Representative Paul Davis Ryan of Wisconsin are now officially the Republican
Party ticket for this Fall’s national election. The political speeches were the usual stuff, nothing notable
from my perspective. I must add
that Clint Eastwood’s prelude speech got mixed reviews, some outright
condemnations; however, I thought it was creative genius. His roughhewn delivery coupled with
comedic timing made a striking impression, in my most humble opinion. Next week, the Democratic Party does
its version of slap-on-the-back-aren’t-we-just-the-best political theater. The Silly Season will soon be in full
bloom.
This may be a sign of things to come:
“Three-person civil union sparks controversy in Brazil – A
notary in the Brazilian state of Sao Paulo has sparked controversy by accepting
a civil union between three people”
British Broadcasting Company
Published: 28 August 2012; Last updated at 14:08 ET
I suppose we can add this factoid to other popular examples
like the television programs Polyamory,
Sister Wives, and perhaps even the
fictional Big Love. The times they are a changin’.
The Department of
Justice concluded its investigation into the CIA interrogation issue and
decided not to file charges against any agents or supervisors involved – so
ends this phase of history. Of course, various human rights groups, e.g., Human Rights
Watch (HRW), American Civil Liberties Union (ACLU), and Centre for
Constitutional Rights (CCR), protested the decision, as rightly they
should. However, I retain my
opinion, the CIA Enhanced Interrogation Techniques (EIT), sanctioned by
President Bush [13.November.2001], are not torture under the law [548]. This action will not end the legal and intellectual debate
regarding the use of EITs in wartime intelligence operations.
The Department of Justice also closed its investigation of
the Maricopa County [Arizona] Sheriff Department and the agency’s controversial
leader Sheriff Joseph M. “Joe” Arpaio, and decided not to file any charges. Various Press sources suggest the
sheriff’s legal woes are not all behind him.
A friend and long-time contributor sent this Blog link:
“AIN Blog: Ten Reasons Ford Motor Should Buy Hawker
Beechcraft”
AINonline
Published: August 28, 2012 - 9:00am
Hawker Beechcraft Corporation has been in Chapter 11
bankruptcy since May and is currently in the exclusive, due diligence phase
with Superior Aviation Beijing Co. Ltd.
At the conclusion of this phase, extended into September, an open
auction phase will begin.
Trautvetter’s float is intriguing and worthy of serious consideration;
however, only Ford can decide to reenter the aviation market. Regardless of who ultimately buys the
company, I believe the business will be far better off than it was under the
previous owners, who near fatally burdened the company with unsustainable
debt. The company expects to
emerge from bankruptcy circa February 2013. This should be interesting.
News from
the economic front:
-- The Financial Times reported on a plan, agreed to between
top aides to European Commission (EC) President José Manuel Barroso and the
European Union’s senior financial regulator, Michel Barnier, would remove
existing national regulators of almost all authority to shut down or
restructure their countries’ failing banks, giving those powers to the European
Central Bank (ECB) in Frankfurt.
Under the EC plan, over 6,000 eurozone banks would be regulated by the
ECB, putting the EC on a collision course with Germany and the ECB itself,
which have urged a more decentralized first step towards “banking union”.
-- Federal Reserve Chairman Ben Shalom Bernanke gave a
detailed and forceful argument for new stimulation of the economy, reinforcing
indications that the Fed is on the verge of action. The Fed chief contends the central banks efforts over the
last several years have provided significant benefits, and the benefits of their
actions outweighed the potential costs.
-- The New York Times reported Attorney General Eric T. Schneiderman
of New York is investigating whether some of the nation’s biggest private
equity firms have abused a tax strategy in order to slice hundreds of millions
of dollars from their tax bills. The attorney general has issued subpoenas to more than a
dozen firms seeking documents that would reveal whether they converted certain
management fees into fund investments, which are taxed at a far lower rate than
ordinary income. Among the firms
to receive subpoenas are:
·
Kohlberg Kravis Roberts & Company
·
TPG Capital
·
Sun Capital Partners
·
Apollo Global Management
·
Silver Lake Partners
·
Bain Capital
Whether this legal investigation during the current silly
season is politically motivated and thus verging on illegal has yet to be
seen. I truly hope not.
Comments and contributions from Update no.558:
“Thanks for that Cap, esp. the curiosity landing sequence,
stunning stuff. Neil Armstrong's
legacy and one day it will take us to another planet and beyond. What a 'giant
step' he made. Indeed well done NASA well done to your homeland.
“Bloody good show old boy!”
My reply:
Thank
you for your kind words. I have
been fascinated with space from Yuri Alekseyevich Gagarin through all the
phases. Our future lies in space.
Comment to the Blog:
“My comment on the end of secrecy last week referred to the
ability to keep secrets, and to neither the willingness to try nor to the
morality of the situation. I was as startled as anyone to learn that a member
of Seal Team 6 had written about the killing of Osama bin-Laden.
“As with any American my age or older (I assume), I remember
watching the first moon landing. We had no TV, but we had friends who did. I
can still remember the linoleum on the floor where I sat for what seemed
forever before and after Neil Armstrong set foot on the moon.
“I would call Representative Akin a toad, but toads serve a
purpose and Akin does not.
“On both of the cases you discuss, my position is simple. I
favor freedom.
“On the Sequester bill, I am one of the many who saw this as
a disastrous evasion of responsibility on the part of Congress. We may only
hope that someone can push our elected “representatives” to take some of the
responsibility for their choices at some point before the current mess goes
catastrophic again.”
My response to the
Blog:
Re:
secrecy. Ideologically, I would
prefer all government actions to be open, public and timely. The Internet has helped us get closer to
that idealized objective. I actually
supported the Controlled
Substances Act of 1970 based on Press reports – all we had available
40 years ago. Today, we can read
legislation as it is created and makes its way through Congress. We can read judicial pronouncements
from the district courts to the Supreme Court, which helps us understand the
law and its implications. We are
far closer to open government than at any time in our history. Yet, there are elements of information
that should remain classified and not available to the public for at least 20
years. I wanted to know the
details of the Operation
NEPTUNE’S SPEAR, but the government leaks compromised future
operations and inflicted a terrible punishment on Doctor Shakil Afridi. While the President’s public statement
was encouraging and probably appropriate, everything beyond the simple fact was
grossly inappropriate. I am very
much for open government, but not when it compromises national security or
public safety.
Re:
Armstrong. That day left a
permanent impression on those of us who witnessed history.
Re:
Akin = toad. Spot on! Unfortunately, there are far too many
just like him and worse.
Re:
freedom. Freedom is not always
pretty, pleasant or comforting, yet the parsing of freedom ultimately
diminishes freedom for all of us . . . we may not recognize it but true
nonetheless.
Re:
Sequester. The Budget Control Act
of 2011 (BCA) [PL 112-025; 125 Stat. xxxx; 2.August.2011] may not be
perfect law but it did what had to be done – we cannot sustain this debt. We are spending beyond our means. I pointed directly at the political
intransigence of the Joint Select Committee on Deficit Reduction as the canary
in the coal mine. I have no reason
to doubt the assessment of the CBO.
If Congress believes an even deeper second dip recession is appropriate
and necessary, then let’s get on with it.
We have risen from the ashes before; I do not doubt we will do it
again. The only question is when?
. . . follow-up comment:
Again, my point is not ideological/moral but practical. The
fact is, wikileaks and others have put an end to secrecy, like it or not. I
tend to think it will be a net improvement in society eventually but either way
the change is here.
Your phrasing seems to indicate that you see Congress as a
coherent entity that would base its decisions on what is best for society. I
see no evidence for those ideas. Congress is not coherent; it is 435
representatives and 100 senators, most of whom are more concerned with
re-election than anything else. Allowing the economy to crash again will be the
result of moral cowardice with the same underlying cause (campaign money) as
the current crash.
. . . my
response to the follow-up:
Re:
classified material. I do not
believe WikiLeaks hacked USG computers or raided USG file cabinets to obtain
the classified or sensitive material they eventually disclosed to the
public. It was one person
(probably more than one) with the appropriate security clearance and
need-to-know access gathered up those documents and delivered them to an agent
of WikiLeaks, by one means or another. The primary issue for me is the source, not the medium . . .
although I do believe the Press has a moral obligation sometimes forgotten.
Re:
government transparency. As a
general rule, I do agree with you.
Having access, to read & research for ourselves, has made us better
citizens, and consequently, this Grand Republic is stronger for it. However, there are always exceptions to
generalized rules. It is at the margins
of those exceptions that we debate, argue and struggle.
Re:
Congress. I never intended, nor do
I think I ever implied, that Congress is a “coherent entity.” In fact, quite the contrary; by design,
it is intended to be a cauldron of debate, negotiation and compromise, rather
than a body of conflict, confrontation and ideological intransigence. Coherence does occur on occasion, but
those moments are often historic exceptions. I do agree with you, most contemporary politicians are far
more interested and focused on re-election, to retain the trappings of power
than finding solutions to national and societal issues. On 29.August.1763, John Adams published
“An Essay on Man's Lust for Power” that still stands as an accurate reflection
of this common human malady. The
system was intended to minimize or dilute the affliction, but could only work
if citizens of good faith operated the system properly. For those elected officials who place
their re-election prospects over the welfare of this Grand Republic, the best
we can do is deny them sufficient votes to return the seat they seek.
My very best wishes to all. Take care of yourselves and each other.
Cheers,
Cap :-)
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