24 September 2012

Update no.562


Update from the Heartland
No.562
17.9.12 – 23.9.12
Blog version:  http://heartlandupdate.blogspot.com/
To all,
The follow-up news items:
-- The U.S. Government acknowledged an al-Qa’ida affiliate group might have carried out the assassination of Ambassador Stevens [561].  The investigation will continue for some time, I suspect.  In a rare and unusual moment, Prime Minister Mustafa A.G. Abushagur of Libya publicly acknowledged Ambassador Steven’s contribution and value to the freedom of the Libyan people from the oppression of Colonel Mu’ammar al-Qaddafi.  A large group of Libyans also stormed and burned the headquarters of the local al-Qa’ida affiliate in Benghazi – Ansar al-Sharia, a group led by a released Guantanamo detainee (how interesting).  The voices of the moderate Muslims are finally being heard.  If for no other reason, the Benghazi tragedy may serve a far larger purpose toward ending the War on Islamic Fascism. 

“Thomas concedes that ‘we the people’ didn’t include blacks”
by Robert Barnes
Washington Post
Published: September 16
Barnes opened his article with:
“It is true, Justice Clarence Thomas acknowledged the other night, that the “we the people” extolled in the Constitution 225 years ago did not include people who looked like him.
“But the Declaration of Independence did, he contended, and that was something that a black kid growing up in Savannah, Ga., was told early on.”
Justice Thomas was reflecting upon the dichotomy of what he was taught in the segregated South versus the reality of what he lived.  Yet, his ruminations regarding childhood contradictions also reflect upon the pit that strict constructionists like Thomas create for themselves.  Of course, he is correct about the Constitution at the time of its creation and ratification, but his childhood rationalization was wrong.  The standard of the day embodied in the phrases “[A]ll men are created equal” and “We, the People” was understood to mean only adult, Caucasian, Protestant, freeholders, i.e., white males who owned at least 40 schillings worth of land and professed belief in the Protestant Christian faith only.  All others were excluded by definition.  Perhaps I am alone, but that does not sound like the principles this Grand Republic has come to represent.  In that time and by those standards, women and children were considered property – the possessions of the husband / father.  Further, in nearly half the original states, adult males with dark skin pigmentation were simple property like a horse or plow.
            Since those revolutionary and founding days, we have understood and accepted the principles espoused by the Founders / Framers to mean all citizens in good standing regardless of the social factors – age (beyond the legal age of consent, i.e., adult), gender, race, ethnicity, origin, religion, disability or sexual orientation (although this factor is still in work), as there is no rational basis for the more restrictive interpretation consistent with the spirit of the law.  The strict constructionists would argue . . . yes, but, the Constitution has been amended to eliminate skin pigmentation as a criterion for discrimination and implicitly neutralized the Federal government with respect to religion; however, none of the other social factors are included, thus they are not covered by the Constitution, only common law.  With that argument, there is no equality for all men, let along all human beings.
            This debate is very much a have-your-cake-and-eat-it-too sorta argument.  I think Clarence’s childhood rationalization was quite appropriate in that the meaning of “men” and “We” was the broader generic definition that illuminates the spirit of our Founding documents, rather than the constrained, implicit meaning common to two centuries ago.  We are far more noble and better for the wider interpretation, even if the Founders could not see it at the time.  I regret deeply that young Clarence had to find meaning in the irrational discrimination of his youth.  The argument serves the broader purpose of helping us understand and interpret the Constitution in a contemporary context, not as it was restricted to a time 225 years past.

In the wake of the Chicago teachers’ strike, Eugene Robinson offered an interesting opinion.
“Standing up for teachers”
by Eugene Robinson
Washington Post
Published: September 17, 2012
Actually, I agree with Eugene.  While there are teachers who are not up to the task and challenges, teachers in general are not the root cause of the travails before American education.  Government is not the solution either.  Eugene got closer to the root cause with his focus on poverty.  Yet, even he missed the real root cause – parents.  I believe most of our traits are imprinted within us by age five.  Whether a child seeks to bully other children, refuses to do his homework, and defies his teacher’s instructions is determined by the standards of conduct taught and set by the child’s parents at home.  With all due respect to Eugene Robinson, those parental teachings have absolutely nothing to do with poverty or wealth, or urban or suburban, or east, south, north or west.  Yes, the property value or per capita income within districts certainly determines the funding available to schools, except as supplemented by the state or federal governments; however, even those limitations can be overcome with imagination.  One day, we shall recognize reality.  None of us wants others poking their heads into our private affairs and our families, yet I would hope and expect my neighbors or our children’s teachers would tell us when they were acting up or not performing properly.  If we failed to correct their behavior, then progressively stronger actions would be warranted.  Parents must be held accountable for the conduct of their children and that accountability extends to the schools and playgrounds.  Society must define and enforce standards of parental performance and childhood conduct.  The soceital expectation will raise the standards of parental performance, and I expect will cause more folks to consider the consequences before they procreate – intentionally or unintentionally.  Yes, teachers are not the problem.  Neither is poverty.  Let us put responsibility and accountability where it belongs.

A good, long-time friend insisted I illuminate a proposal to solve the intractable intransigence of Congress and their idiotic political parochialism.  Warren Buffet allegedly offered this proposal, although Snopes declares it MOSTLY FALSE, which in turn suggests the author thought attaching Buffet’s name would somehow add legitimacy.  Nonetheless, as an object of public debate, here we go:
*Congressional Reform Act of 2012*
1. No Tenure / No Pension. 
            A Congressman/woman collects a salary while in office and receives no pay when they're out of office.
2. Congress (past, present & future) participates in Social Security. 
            All funds in the Congressional retirement fund move to the Social Security system immediately.  All future funds flow into the Social Security system, and Congress participates with the American people. It may not be used for any other purpose. 
3. Congress can purchase their own retirement plan, just as all Americans do. 
4. Congress will no longer vote themselves a pay raise.  
            Congressional pay will rise by the lower of CPI or 3%.
5. Congress loses their current health care system and participates in the same health care system as the American people.
6. Congress must equally abide by all laws they impose on the American people. 
7. All contracts with past and present Congressmen/women are void effective 31.December.2012. 
            The American people did not make this contract with Congressmen/women. Congressmen/women made all these contracts for themselves. Serving in Congress is an honor, not a career.  The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.
The proposal strikes resonance with many citizens for one clear reason – it reflects dissatisfaction with Congress.  I have written my opinion similar to these suggestions, so I support most of the identified changes.  However, such a change to Article I would indeed require a constitutional amendment.  There is no way on God’s little green earth Congress would approve such an action.  As a representative democracy, there is no other option.  While such adjustments to our representation are intriguing, I believe the root cause of the corruption, partisanship and intransigence in the federal government is the inordinate influence of money, used by corporations and the wealthy to compromise the tax code, dilute regulations, and influence justice.  I do not suggest negating the influence of money, just some degree of balance.  I see money becoming quite like taxation to the Founders, i.e., without money, we have NO representation.  The Tea Party came into existence for that very reason.  The Supreme Court has set the stage for the coming revolution.  It is only a matter of time as We, the People, feel more and more disenfranchised from the government intended to represent us, not just the wealthy few.

News from the economic front:
-- The Bank of Japan policy board decided to increase the size of its asset purchase program (its primary tool for monetary easing amid near-zero interest rates) to ¥80T (US$1.01T) from ¥70T, following similar steps by the Federal Reserve [561].  The BoJ made the move to further ease its monetary policy as it tries to tackle an export-sapping strong yen value, a persistent deflation, and the impact of slowing global growth.
-- The Census Bureau reported the median annual household income fell in 18 states in 2011 from a year earlier after adjusting for inflation, and was flat in almost all the remaining states, with the drop particularly steep in places where the economy has been hit hard by the housing bust.
-- Minister of Finance Guido Mantega of Brazil has sharply criticized the decision of the U.S. Federal Reserve [561] to roll out more quantitative easing, claiming it would have little positive economic effect for the U.S., but potentially drastic consequences for the rest of the world, including reigniting the “currency wars”.   Mantega also asserts there is plenty of liquidity but no commitment to production.  Unfortunately, Mantega fails to acknowledge the extraordinary social, political and economic uncertainty that urges reticence to engage that liquidity.

Comments and contributions from Update no.561:
“As I have opined before, Wow!
“Too much to address, but I am in general agreement with almost all of your observations, remembering our early soft disagreements.
“One question:  why is my hard earned social security check, my contributions for which were forced and do not compare with what I could have received by investing them, called an "entitlement" along with various welfare programs that use up even more of my continuing tax payments than my involuntary share of interest on the national debt?  I resent the label, but maybe I'm just bitter.  (Actually I'm thankful to be getting any of it back, considering all the other broken promises of my government and my own miserable record of investments, although I remain in favor of options for citizens willing to invest some of their own money rather than be forced to pour all the mandatory SS tax into the SS system.)
“Take your time; the answer may be complicated.”
My reply:
Roger,
            Re: entitlements.  LOL  I know your question is a serious one, however your sarcasm added the humor.  Entitlement is a misnomer in the context you offered.  It is your money, and you were not given a choice.  Mandatory “contribution” has been the law of the land since the Social Security Act (SSA) [PL 74-531; 49 Stat. 620; 14.August.1935] [546] became law.  Even those who did not or do not contribute are eligible for minimum distributions, as originally intended to protect Americans from destitution after their working years were past.  You make a very valid point.  The distribution from Social Security is presumably a pay-out after retirement, but it is the perceived guarantee established by SSA that generates the impression of entitlement, i.e., the USG owes me this regardless of my contributions.
            As we have discussed previously, I could support self-investment just as I could self-insurance for PPACA, as long as the individual waives or abandons any future claim or request for assistance.  While such a proviso is intellectually justifiable, neither option is realistic given our compassion for our fellow man.  We do not want to watch an old, homeless man die of starvation or lack of medical care.
            While I do not see disenrollment as a viable option, I would take a slightly different tack.  We need an enforced law to prohibit Congress or the Executive from “borrowing” from the various government trust funds like social security and the highway fund.  Past raids are as much of the problem as the bow wave of retiring baby boomers.

Comment to the Blog:
“I agree with your points about Charles Koch’s Wall Street Journal article. You have taken a good look at the subject, but you treat Mr. Koch as a sincere person. I would like to add another point. This discussion of cronyism comes from a man whose family’s foundations have ‘given more than $100 million to conservative and libertarian policy and advocacy groups in the United States (per Wikipedia).’ He participates in cronyism in a very large way. This article is a red herring, which ignores that Mr. Koch’s fortune derives from oil refining and is hypocritical in the extreme.
“I see attacks on embassies and diplomats as important and scary acts. Diplomats are the key ingredient in harmonious relationships among nations, and are therefore protected by international law in a big way. I also agree that this particular attack was planned and coordinated to take advantage of the unrest rather than being a part of the general anger fomented by radical clerics. I cannot guess the exact details, but someone decided to target the embassy rather than other symbols of the USA such as retailers, which have received the wrath of the crowds in some other places.
“You make an important point that people accustomed to any dictatorial form of national government cannot understand freedom of speech. We may equally expect that they will not understand the delay and uncertainty of bringing the perpetrators to justice or the lighter penalties.
“Your statement that Islam is ‘not matured’ applies to everybody in the Middle East, not just Muslims. Christians and Jews have participated in the same barbarous culture back into the mists of time. Even the Romans could not keep order there.
“I rejoice that the IRS has awarded $104 million to a whistle blower. I feel certain that they are well aware of the encouragement that will provide to others ‘in the know’ about financial misdeeds who are themselves very much motivated by money.”
My response to the Blog:
Calvin,
            Re: Charles Koch.  I surmise you are not a fan.  I am not so sure he is being hypocritical.  As you imply, I suspect his oil business takes advantage of USG “allowances” as his competitors do.  I believe he is advocating for a level playing field and removing USG involvement for all companies including his own.  I could be wrong, but that is what I think.
            Re: diplomats.  Well said and spot on, which is precisely why al-Qa’ida and other Islamo-fascist groups use terror and why they targeted Ambassador Stevens.  He was popular in Libya; highly regarded.  Al-Qa’ida would prefer anarchy to allow their brand of strict fundamentalism to become the dominant force. 
            Re: justice.  Again, well said and spot on.  ‘Nuf said.
            Re: Middle East.  Excluding the 1948 partition and statehood fight, I’m not aware of Israel initiating any offensive action to gain territory or subjugate people.  The actions they have taken and the consequences have been direct moves from invasion or provocation.  Likewise, I am not aware of Christians acting in hegemonic manner since the Crusades (1096-1291).  The British and French controlled most of the Middle East as a consequence of World War I, but they relinquished control in 1948.  So, to further this discussion, perhaps we should tally-up Muslim aggression versus Christian aggression versus Jewish aggression.  I suspect such a tally would be dramatically lopsided.
            Re: whistleblowers.  Likewise, I concur.  I hope and trust that is indeed the consequence of the reward.  There are many more bad men in the financial realm who have not yet met justice for their greed and wrongdoing.  There is hope.
   “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                        :-)

17 September 2012

Update no.561


Update from the Heartland
No.561
10.9.12 – 16.9.12
Blog version:  http://heartlandupdate.blogspot.com/
To all,

“Corporate Cronyism Harms America – When businesses feed at the federal trough, they threaten public support for business and free markets”
by Charles G. Koch
Wall Street Journal
Published: September 9, 2012, 6:55 p.m. ET
Aside from the vilification by the Left and in the main, Charles Koch makes excellent and valid points – government subsidies in their myriad forms distort and contaminate the marketplace.  His label for such conduct is “corporate cronyism,” which sounds rather innocuous when compared to reality.  Nonetheless, I do support his suggestion – remove government from “favoring” individuals, groups, companies or industries.  However, I think he is applying a rather broad-band, high bandwidth filter to his view of government and the marketplace.
            First, Chuck leads off his essay with an adapted quotation of President Obama that conservatives relish every opportunity to illuminate – “We didn't build this business – somebody else did.”  Frankly, I cannot pass the occasion to lambast Charlie for his myopic, political partisanship.  The President drew attention to the reality that the U.S. Government (USG) paid for, enabled or “subsidized” much of the infrastructure business utilizes for success.  For example, as this Grand Republic engaged in a bloody war within itself, President Lincoln signed into law three key laws that facilitated a dramatic increase in commerce as well as development of the West, and set the stage for post-war prosperity. 
1.     Pacific Railroad Act of 1862 [PL 37-II-120; 12 Stat. 489; 1.July.1862]
2.     Homestead Act of 1862 [PL 37-II- 075; 12 Stat. 392; 20.May.1862]
3.     Morrill Act of 1862, AKA Land Grant College Act [PL 37-II-130; 12 Stat. 503; 2.July.1862]
We can cite many more similar development laws throughout our history.  Would business have built the Transcontinental Railroad?  Probably, eventually.  Would business have built the interstate highway system?  Probably, eventually.  Would industry have built Hoover Dam, Grand Cooley Dam or all the other hydroelectric generation facilities?  Probably, eventually.  The USG has done good work that provided the means for business to be successful; thus, President Obama’s statement . . . so often taken out of context for political advantage.  Our ancestors and we have paid for the infrastructure than enables American business to grow and flourish – our tax dollars.  Let us keep things in perspective.
            Second, he cites and singles out the Community Reinvestment Act of 1977 (CRA) [PL 95-128; Title VIII; 91 Stat. 1111, 1147; 12.October.1977] [356] as one of the legislative culprits.  Indeed, it is; I agree.  However, he fails to acknowledge the greater and more contemporary legislative enabler of the Financial Services Modernization Act of 1999 (FSMA) [PL 106-102; Title I; 113 Stat. 1338, 1341; 12.November.1999] [353] that repealed the guts of the Glass-Steagall Act {Banking Act of 1933 [PL 73-066; 48 Stat. 162; 16.June.1933].  Koch makes an appropriate highlight of government meddling in the marketplace with CRA, yet his argument rings hollow when we witness the consequences of deregulation represented so well by FSMA.  Koch defines the role of business is “to provide products and services that make people's lives better – while using fewer resources – and to act lawfully and with integrity.”  Sounds rather idyllic to me.  What happens when a business acts unlawfully or without integrity, or worse as we experienced with FSMA, the law is removed?  Capitalism is a powerful force.  Money is the instrument of that power.  Unfortunately, there are bad men in this World – always have been, always will be.  Who is to police the bad men?  Further, I would like to ask Charles Koch how Credit Default Swaps, financial derivates and other similar gambling instruments “make people’s lives better”? 
            Third, Chuck’s argument and recommendation would be far more effective and useful if he had acknowledged the proper place of government in a well-ordered, productive society.  Unfortunately, he chose to ignore the beneficial aspects of laws, the need for standards and commonality in our infrastructure, and the requirement for law enforcement to reduce or eliminate the deleterious effects of bad men who choose not to act with integrity.
            Lastly, there is a long list of laws (and obvious targets for budget cuts) that fit precisely the cronyism Charlie is referring to in his essay.  I have railed against earmarks which are just another form of “cronyism.”  It is up to We, the People; we must wean ourselves of the public teat.  Thus, I shall end my little diatribe and say thank you Charles Koch for saying what had to be said, and I shall disregard the implied parochial political partisanship to achieve the greater objective.

Saeed al-Shihri, a Saudi national, al-Qa’ida no. 2 leader in Yemen, and former, six-year Guantanamo detainee, was killed by a missile after leaving a house in the southern province of Hadramawt.  The shooter was presumably a U.S.-operated, unmanned drone aircraft.  Al-Shihri met his end of days in an automobile along with six other people.

Circa 21:30 [B] LCL, Tuesday, 11.September.2012, a well-armed assault broke through the gates and stormed the U.S. Consulate in Benghazi, Libya, in what became a five-hour siege.  The details are still being collected and assembled, however, we do know four Americans were killed.
·      John Christopher “Chris” Stevens, 52 – United States Ambassador to Libya
·      Sean Patrick Smith, 34 – U.S. Foreign Service Information Management Officer
·      Tyrone S. “Rone” Woods, 41 – former SEAL (probably a DSS agent or contractor)
·      Glen A. “Bud” Doherty, 42 – former SEAL (probably a DSS agent or contractor)
The bodies of the four Americans returned and repatriated at Andrews Air Force Base by the President and Secretary of State.  They will be transferred to Dover Air Force Base for thorough autopsy in support of the investigation.
            May God rest their immortal souls.
            The president of Libya’s National Assembly, Mohammed Magarief, apologized for the attack, describing it as “cowardly” and offering condolences, according to the Associated Press.
            The United States deployed a Fleet Antiterrorism Security Team (FAST), whose mission is to respond on short notice to terrorism threats and to reinforce security at U.S. embassies.  The FAST secured the embassy in Tripoli and I suspect in Benghazi to enable the investigation; another team may have been deployed to Sana’a, Yemen, as well as perhaps other embassy sites in the region.
            The Benghazi attack sequence is not yet known or has not been made public, however it does appear Stevens and at least one of the others were attempting to escape from the Consulate compound when their vehicle was struck by a Rocket Propelled Grenade (RPG), designed as an anti-tank weapon and commonly used to project high explosives, to strike the vehicle – not the type of weapon you carry to a spontaneous street protest.  There are some indications Stevens and Smith may have perished in the fire at the main building or in the not-so-safe, safe room, thus the importance of the detailed autopsy.  The attack appears to have been well-planned and executed, more akin to a military assault rather than a spontaneous mob reaction to some obscure, mindless, amateur video.  From everything I have seen in the public domain so far, I think the Benghazi Consulate attack was going to happen, probably on the day it took place.  The video trailer instigator and Cairo protest were convenient happenstance distractions.  There are conflicting assessments and attributions, ranging from an unplanned, armed mob that went too far, to a well executed and planned assault attributed to members of a Libyan Salafi Islamist extremist group known as Ansar al-Sharia that has some connection with al-Qa’ida in Islamic Maghreb (AQIM) – the al-Qa’ida affiliate in North Africa. 
            Ambassador Stevens, who just happened to be visiting the consulate that day, is the first American ambassador killed on duty in more than three decades.  According to the U.S. State Department, five prior American ambassadors had been assassinated by terrorists.  They were:
·      Adolph “Spike” Dubs – Afghanistan, 14.February.1979
·      Francis Edward Meloy, Jr. – Lebanon, 16.June.1976
·      Rodger Paul Davies – Cyprus, 19.August.1974
·      Cleo Allen Noel, Jr. – Sudan, 2.March.1973
·      John Gordon Mein – Guatemala, 28.August.1968
Two other U.S. ambassadors died in airplane crashes:
·      Arnold Lewis Raphel – Pakistan, 17.August.1988
·      Laurence Adolph Steinhardt – Canada, 28.March.1950
The last handful of decades has not been easy for U.S. ambassadors.  They hold rank equivalent to a four-star general, and I do not recall very many full generals being killed in combat.
            The instigation for the Cairo protest that sparked off the wider regional assaults on the facilities of the United States and apparently provided cover for the terrorist attack in Benghazi was an amateurish 14-minute video clip released on YouTube and touted as a trailer for a two-hour movie, titled: Innocence of Muslims.  Apparently, the vid clip was translated into Arabic and re-titled: Mohammed Nabi al-Muslimin [Mohammed, Prophet of the Muslims], according to Egyptian media sources.  No one can find any evidence on an actual movie or legitimate purpose.  Men identified as involved or associated with the vid clip are:
Þ   Steve Klein – a California real estate developer and self-professed anti-Islamist
Þ   Terry Jones [454] – the notorious Florida pastor (although I am quite reticent to use the honorable term with him)
Þ   Morris Sadek – the leader of the Washington-based National American Coptic Assembly
Þ   Sam Bassiel, or Bacile, or Bassel, or Basile, or Basil – the apparent producer of the vid clip, who the Press has identified as Nakoula Bassely Nakoula, an Egyptian Coptic Christian of felonious background, and he has used more than a dozen aliases identified so far
Every American is entitled to freedom of speech, including Nakoula, to speak their mind as they see fit.  Yet, the First Amendment’s freedom of speech does not entitle anyone from utterances intended to incite violence – shouting fire in a crowded theater.  This vid clip has all the markings of a statement purposefully intended to incite Muslims.
            Rabble-rousing Egyptian tele-Islamist Sheikh Khalid Abdullah, 47, gets the credit for igniting the flames of religious passion within Egypt.  The vid clip had been on the Internet since July.  Abdullah broadcast the vid clip last week and called for the creators to be executed – not prosecuted but executed.  Within hours of the broadcast, hardline Salafi Islamists in Cairo were demonstrating in Tahrir Square and outside the U.S. embassy.  Undoubtedly, megalomaniacal Islamic clerics rapidly fanned the flames and encouraged public demonstrations with a focus on the United States.  Other European countries also suffered attacks across the region, including Germany and Great Britain in Khartoum and Switzerland in Tehran.  These attacks were no longer about that silly vid clip.  To be fair, more rational, moderate clerics tried to diffuse the situation in Cairo, specifically respected spiritual leader Abdullahi Sheikh Osman.  There is sanity amid the insanity.
            First, I must say that I do not believe the armed assault of the U.S. Consulate in Benghazi was in any way associated with the protests in Cairo, Sana’a, or other countries in the region.  Second, I absolutely do not believe President Obama was sympathizing with the protesters, or making excuses for America, as some political talking heads have claimed . . . to suggest such nonsense is irresponsible.  Third, I doubt the vast majority of the Islamic protesters have ever seen the vid clip in question.  I believe they were stirred up by fundamentalist clerics for their megalomaniacal purposes.  Once the mob was ignited, it took on a course of its own.  Fourth, how are people who have grown up in an autocratic, dictatorial or theocratic country expected to understand freedom of speech, when every public action is ruthlessly controlled by the government?  It should be no surprise many Muslims have difficulty separating the foolish work of a few people intent upon inflaming religious passions from the direct action of the United States of America.  Lastly and sadly, it appears to be a common trait among various religions, defend the “honor” of the religion and God with violence, as some comprehensible demonstration of devotion.  Intellectually, if our faith is so weak that we cannot sustain our beliefs in the face of opposition, then is our faith really that strong in the first place.  Resorting to fear, intimidation, and violence to defend the faith may have been acceptable (I will not say appropriate) 700 years ago, but such conduct is intolerable in an enlightened World.  As I have said more than a few times, Islam originated 600 years after Christianity, and Islam has not matured to the level of tolerance, diversity and coexistence necessary in modern, free society.  Education beyond the religious parochial madrasah is essential.

Japan announced they will phase out nuclear powered, electricity generation by 2040 – a major policy shift and the first formal decision to retreat from nuclear energy since the Tohoku Earthquake disaster at Fukushima [482, 11.March.2011].  Japan will join Germany as the second major economy to reject nuclear power, electricity generation. Business groups opposed the plan, while the U.S., UK and France questioned the wisdom of the decision.  Japan’s timeline is almost two decades slower than Germany’s schedule to achieve the same objective.

News from the economic front:
-- The People’s Republic of China (PRC) reported imports fell 2.6% in August from the same month a year ago while exports increased less than expected by only 2.7% from a year earlier – another sign of soft economic indicators.
-- PRC Premier Wen Jiabao promised Beijing will do more to boost the stalling Chinese economy in the coming months as he delivered a spirited defense of his economic legacy and his decade in power.  Wen acknowledged the downturn in China that has gathered pace in recent months.  Yet, he insisted his government still had the ability and to stimulate the economy, albeit at lower levels than the past annual average 10.7% growth.
-- Moody’s Investors Service warned the U.S. government could lose its top Aaa credit rating, if policy makers fail to agree on measures to reduce the country’s debt to GDP ratio next year.  The warning reflects the continued pessimism regarding the U.S. debt situation.
-- The Internal Revenue Service granted a US$104M award to tax whistleblower and former UBS banker Bradley Birkenfeld for providing the agency with inside information with respect to UBS's alleged encouragement of secret offshore accounts by U.S. taxpayers.  The award is believed to be the largest reward ever given to an individual whistleblower in the U.S.
-- The judges of Germany's Federal Constitutional Court highest court rejected attempts to delay the country's ratification of the European Stability Mechanism (ESM) and the so-called fiscal pact – a major question mark over two crucial elements of the euro zone's €500B rescue fund to tackle its debt crisis and paved the way for the creation of a permanent bailout mechanism that will be able to provide large-scale financial assistance to heavily indebted euro-zone economies.  The court added stipulations that must be observed for the ESM to stay within the limits of compatibility with the German Grundgesetz [Basic Law], e.g., the ceiling of €190B in German financial guarantees imposed when parliament approved the rescue fund could only be increased with the ascent of lawmakers. There must be no unlimited liability for Germany, the ESM’s biggest backer, the justices decided.  I have very mixed feelings regarding the burdens being placed on Germany by southern countries taking on massive debt without the ascent of Germany.  What is happening in Europe verges upon taxation without representation, and we know how that went.  Europe is precariously close to fracture.
-- The U.S. Federal Reserve Open Market Committee decided Quantitative Easing stage 3 (so called QE3) that will expand their holdings of mortgage-backed securities, and potentially undertake other new policies, until unemployment drops sufficiently or inflation rises too fast.  The Fed said that it will add US$23B of mortgage bonds to its portfolio by the end of September, and then announce its plans for October as part of a new process that aims to prioritize the Fed’s economic objectives.  The Fed also said it expects to hold short-term interest rates near zero until at least mid-2015.

Comments and contributions from Update no.560:
Comment to the Blog:
“I read that entire American Dream article (Jon Meacham, Time Magazine). It’s very long. I missed the doom and gloom you mentioned. As far as I could see, he said it’s up to “We the People” that you both go on about to decide whether the American Dream continues. That dream is, in any case, poorly defined except by marketers who see their product as part of it. Let us remember meanwhile that the whole thing is a concept, not a concrete fact. I did not understand the part of your discussion beginning with, ‘The American Dream does not entitle anyone . . .’ It’s supposed to be a dream rather than a reality, right?
“I will note here as elsewhere that the prosperity of the US in the 1950s and 1960s was as much a product of World War II as anything else. The USA had the only major economy left intact after that war. We had a great time but we didn’t bother to maintain our lead as other countries caught up to us.
“You define the Box pretty clearly, but I think it’s not as restrictive today as you picture it. In my childhood it was, but a great many people have loosened the shackles at least as far as sexuality. The Tea Party and their radical Christian allies make a great deal of noise, but here in Central Ohio as opposed to in the media most of my friends know at least one gay person or couple as friends, mixed-race couples are not notable, and many of us have other causes on our minds. This might look very different to me if I lived in a different place.
“Your use of middle names, in this case the mainstream Presidential candidates’ middle names, still interrupts the flow of my reading.
“I will be a bit more direct and encourage your readers who wish to vote without holding their noses to vote for either the Green Party or the Libertarian Party candidates, according to their own beliefs. If they have independents with whom they agree, that’s even better.
“In my case, I will vote from the comfort of my home. For anything beyond that, I have run completely out of energy. Living in a “swing” state has meant resisting the temptation to trash the TV when the hundredth political ad of a given day comes on.”
My response to the Blog:
Calvin,
            Re: doom & gloom.  The tone of his essay was, gee, wasn’t it great, and now it is virtually gone.  We have heard the argument many times over.  Folks seem to conveniently forget the stifling injustice of segregation, the violent social convulsions of the 60’s, and the dramatic immorality of Watergate, the inhumanity of Vietnam, the constant threat of nuclear Armageddon, among so many others.  We survived those; we’ll survive this.  The American Dream is not dead; it is just changing.  I gave Meacham credit for his good points.
            Re: entitlement.  Here is where the debate gushes up.  We create expectations with the notional American Dream that leads many folks to think of poverty in monetary terms, or welfare without constraints, or everyone should have a house in the suburbs on a tree-covered street, or folks rush into traffic to retrieve dollars thrown from a robber’s vehicle.  We have been through this debate; I suspect this will open it again.
            Re: The Box.  I am heartened Central Ohio is progressing.  South Central Kansas is not.  That aside . . . are all Ohioans able to exercise their freedom of choice and seek their Happiness without interference from external sources, and enjoy all the rights & privileges of citizenship?  I suspect not.  Ohioans who choose to live in The Box probably cannot recognize all the rumblings, but I am fairly certain those who wish to live outside The Box would not agree that they enjoy the same rights & privileges.
            Re: full names.  I shall endeavor to keep it to a minimum, but I do think it is important to be precise. 
            Re: voting.  Thank you for your encouragement.
            Re: swing state.  Kansas is definitely not a swing state, yet we still get a flood of these noxious political advertisements.
. . . round two:
“I’ll go ahead and admit that I’ve never had a coherent picture of the American Dream. Maybe that’s why I can think outside the Box with relative ease. People as poor as I were not offered that Dream, and I think it’s a good thing.
“As far as ‘entitlements,’ I’ll save that discussion until someone comes up with definitions and numbers. At present, that entitlement argument is a game played by people of all political stripes who envy others over things that mostly are imaginary.
“I’m glad if Central Ohio is more socially advanced than some other place, although I would not wish others to be behind. We are not perfect here or anything like it, but what I said is true and represents substantial progress. We still have the Box but it’s not as limiting as it once was. I am keenly aware that much work remains.
“The political season goes on and on. I have finally had all I want of passively listening to the major parties.”
 . . . my response to round two:
            Re: American Dream.  I could only paint a quick pencil sketch of the façade.  My sketch is hardly a definition, and further, I doubt an actual definition exists; yet, it is a term popularly used.  I suspect every American has felt the “Dream” and specifically The Box.  In our culture, success and often happiness are defined in monetary terms, by the possessions you own and often flaunt, or the title, influence or power you wield.  Bigger is better, and such.  Personally, I think that notion is what drives some folks to the euphoria and oblivion of psychotropic substances, or encourages them to criminal conduct . . . more, more, more.
            Re: entitlements.  I can do neither.
            Re: Ohio.  I am heartened that Ohio is more progressive.  Then, does a homosexual male enjoy the same freedom, rights and privileges as his heterosexual neighbor?  Are Ohioans able to indulge in private conduct without fear of law enforcement or legal retribution?  How have the confines of The Box been permeated?
            Re: silly season.  I share your pain, brother . . . and regrettably, we have another six weeks of it.
. . . round three:
“The American Dream remains nebulous to me, but I have encountered the attitude that material wealth is the only goal of life. I find that sad or annoying depending on the circumstances.
“I'm beginning to feel attacked about Central Ohio. Yes a homosexual man or woman enjoys the same rights as his or her neighbors in terms of property ownership, privacy, employment rights (at least in the City of Columbus), and most other legal issues. Ohio is not yet near permitting gay marriage, and I'm sure there are other ways in which we are imperfect. All the same, if we move away from a simplistic either/or outlook, we're doing pretty well here.”
 . . . my response to round three:
Uncle Calvin,
            Re: American Dream.  Material wealth = success, life goal . . . sad & annoying, indeed . . . very.
            Re: Central Ohio.  My apologies if I made you feel under attack.  My point was all citizens do not enjoy equal rights under the law, even in Central Ohio.  Nonetheless, I’m glad you feel y’all are doing pretty well.

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

10 September 2012

Update no.560


Update from the Heartland
No.560
3.9.12 – 9.9.12
Blog version:  http://heartlandupdate.blogspot.com/
To all,
The follow-up news items:
-- All three segments of the CBS 60 Minutes program on Sunday, 9.September.2012, featured “Killing Bin Laden” – Operation NEPTUNE’S SPEAR [489, 490, 503] – or, at least the rendition offered by “Mark Owen” [AKA Matt Bissonnette] [558].  No matter how you cut it, a very impressive operation.  Yet, the mechanics of the special operations mission are not the real issue.  The critical element in this whole affair was the public disclosure of unnecessary details in the immediate aftermath of the mission and the loss of value in the treasure trove of intelligence material collected that night.  To my knowledge, Bissonnette may have exceeded certain norms and perhaps the law, but he is of minimal concern considering the public handling of special mission operations and highly sensitive intelligence.

“Keeping the Dream Alive – Work hard and you will prosper: the premise of the American Dream has nurtured our nation and changed the world.  Here’s how the idea got started – and why its future is in doubt”
by Jon Meacham
TIME magazine
Published: July 2, 2012; vol. 180, no. 1 | 2012; pp.26-39
I finally got around to reading the article.  Interesting premise!  As with most doom & gloom hypotheses, Meacham offers a worthy representation of “the American Dream” and a cogent argument for its decline, however, I think he significantly under-sells the power of freedom and the resilience of We, the People.  Unfortunately, money is our form of royalty in this Grand Republic.
            Aside the economic and socio-political aspects of Meacham’s premise, far too many citizens are driven by expectations of the American Dream – or what I euphemistically call The Box.  Society defines the boundaries, restrictions and constraints of the ideal, “normal,” adult life to achieve the American Dream – heterosexual marriage, monogamous-for-life, happily-ever-after, where sex is for procreation only (as sex for pleasure is hedonistic, sinful, and contrary to good family values), to produce two children (preferably one boy & one girl), home in suburbia, on a tree covered street with a white picket fence.  Acceptable adulthood is a Norman Rockwell painting.  Further, anything outside The Box is wrong, against appropriate family values, a sin against God, and in some states is outright illegal.  The inspiration and opportunity of the American Dream are worthy of our support and encouragement, however, the dicta of The Box intrudes upon private choices and the very freedom we cherish.  We must adjust the American Dream to respect the private choices of every citizen.
            Even in the public domain, we must improve, I shall say refine, the American Dream.  I want The Dream to be real, not an illusion intended to placate the less wealthy.  I want every citizen to have the opportunity for success.  I want wealth to mean something as an objective to all of us.  Yet, there are far too many examples where wealth is out of balance.  We must get folks out of our bedrooms and find appropriate balance for money.  In that sense, I think Meacham struck resonance.  The American Dream does not entitle anyone to wealth, and poverty does not entitle anyone to a Cadillac, color television, or any other trappings of the middle class, and just being in this country does not entitle everyone to vote, or to any of the benefits of citizenship.  Let’s get real!

So, we have us a horse race.  President Barack Hussein Obama and Vice President Joseph Robinette “Joe” Biden, Jr. accepted their nominations as candidates representing the Democratic Party in the Fall election.  I did not see any Press coverage, certainly nothing even remotely comparable to the flood of coverage for the Republican and Democratic conventions, for the Libertarian Party that nominated Governor Gary Earl Johnson of New Mexico and Judge James “Jim” P. Gray of California, or the Green Party that chose Jill Stein and Cheri Honkala as their candidates.  We have eight weeks until we decide who will serve us as president for the next four years, and who will represent us for the next two years.

News from the economic front:
-- President Mario Draghi of the European Central Bank (ECB) announced new measures to support the debt markets of fiscally challenged European countries, as the ECB will buy government bonds of remaining maturities between one and three years without announcing any limits in advance, as long as the government is under a program approved by the euro zone.  Further, the Wall Street Journal reported the ECB would not claim the status of a senior creditor “if the bonds [the ECB] buys subsequently have to be restructured, and that the bank will remove an equal amount of money from circulation as it purchases bonds.”  The market responded positively to the announcement.
-- The U.S. Labor Department reported the economy added 96,000 jobs in August, fewer than the 125,000 gain forecast by economists.  Private companies accounted for all of the growth in payrolls with 103,000 jobs. The Labor Department also revised lower the employment numbers in July and June, by 22,000 and 19,000, respectively.  The unemployment rate fell to 8.1% from 8.3% as 368,000 people withdrew from the workforce.

Comments and contributions from Update no.559:
“I love Clint Eastwood. I've watched Jose Wales countless times, but I was embarrassed for him Thursday.  You could see him lose his train of thought and struggle to keep it together.  I'm not sure we watched the same performance.
“Just my opinion.”
My response:
Craig,
            Yes, he had a few bobbles, which to me made him all the more human.  A few others I felt were intentional, thus my roughhewn observation.  He recovered well, and did not get flustered as so many do.  I do agree, it was not a polished, flawless delivery.  Nonetheless, I thought it was very effective.  As with you, that’s just my opinion.

Another contribution:
Subject:  RE: Update no.559
From:  "Frank & Peggy Chenoweth"
Date:  Mon, September 3, 2012 12:54 pm
To:  "'cap'"
Cap,
“Great to continue to get your Blog.  The time of Landing on the Moon, was a great time to work at NASA.  We and the country were on a high.”
My reply:
Frank,
            It may not be the glory days of 1969, but NASA is still doing heady stuff.  I look for great things from Curiosity.  I intend to live to witness humans landing on Mars.
   Yep, westsiders now.  But, hey, Jeanne is happy, and that makes me happy.  Plus, my Harley makes the commute one hellava lot more fun even with the murderous traffic on occasion.
   Our very best wishes to you & Peggy.  Take care and enjoy.
Cheers,
Cap

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