Update no.503

Update from the Heartland

No.503

1.8.11 – 7.8.11

Blog version: http://heartlandupdate.blogspot.com/

To all,
The follow-up news items:
-- As we all know, this has been a tumultuous week. A few hours after the Senate passed the long awaited legislation, President Obama signed into law the Budget Control Act of 2011 [PL 112-025; S.365; Senate: 74-26-0-0(0); House: 269-161-0-3(2)], which began the deficit / debt reduction process and increased the Federal debt limit from US$14.2T to as much as US$16.6T. Just as we witnessed the transformation of S.627 (AKA Faster FOIA Act of 2011) into a debt reduction bill and the Senate’s ultimate rejection [502], so too we see the diversion of S.365 that began as “a technical amendment to the Education Sciences Reform Act of 2002.” Regrettably, Speaker Boehner decided to publicly gloat, claiming he extracted from Congress and the President “98% of everything he wanted in the deal” – not particularly becoming of an honorable politician . . . but, then again, “honorable politician” seems to be at least a dichotomy, if not an oxymoron. Why does this episode appear to be public extortion? The only bright spot was the triumphant return of Representative Gabrielle Giffords of Arizona [473] to the House for the vote on the S.365 bill. Then, after all that doubt, confusion and emotional trauma, Standard & Poor’s downgraded the sovereign debt of the United States of America from AAA to AA+ (see below).
-- Leonard Pitts added his voice to the prospect of ending the so-called “war on drugs” [119 et al].
“NAACP’s paradigm shift on ending the Drug War”
by Leonard Pitts Jr.
Miami Herald
Posted on Saturday, 07.30.11
http://www.miamiherald.com/2011/07/30/2338455/naacps-paradigm-shift-on-ending.html
. . . or . . .
“Leonard Pitts: War on drugs has been a disaster”
by Leonard Pitts Jr.
Wichita Eagle
Posted on Monday, August 01, 2011
http://www.kansas.com/2011/08/01/1956748/leonard-pitts-war-on-drugs-has.html
Leonard concluded, “It is time to concede what has long been apparent: You cannot jail people out of wanting what they want. But you just might be able to treat and educate them to that purpose. Granted, that will require a paradigm shift some of us will find difficult to get our heads around.
“But if the NAACP can do it, you and I have no excuse.”
Amen, brother! I admit the urge to add a few words in a trailing prepositional phrase to Leonard’s: “. . . what they want . . . in a free society.”
-- Perhaps the best public account of the bin Ladin raid [490], yet:
“Getting Bin Laden – What happened that night in Abbottabad”
by Nicholas Schmidle
The New Yorker
Published: August 8, 2011
http://www.newyorker.com/reporting/2011/08/08/110808fa_fact_schmidle?printable=true
An interesting FYI: Nick’s father is Lieutenant General Robert E. Schmidle, Jr., USMC, currently: Deputy Commander for U.S. Cyber Command, Fort George G. Meade, Maryland.

“The Cult That Is Destroying America”
by Paul Krugman
New York Times
Published: July 26, 2011, 5:09 pm
http://krugman.blogs.nytimes.com/2011/07/26/the-cult-that-is-destroying-america/
I draw attention to this opinion, not because I find any affinity with the reasoning, but rather to illuminate the very logic that so divides this Grand Republic. Politics is NOT the domination of one ideology or another; it is entirely about seeking compromise among widely divergent position, desires and objective; it is working with people of all persuasions to achieve a mutually acceptable compromise solution. Paul Krugman is just as wrong as Rush Limbaugh.

I reached the point of my judicial reading list for an oldie but goodie – Ginsberg v. New York [390 U.S. 629 (1968); no. 47]. I would not note or offer an opinion on a 43-year-old, obscenity case, but after the reading, there is an important lesson for us. Sam Ginsberg and his wife owned and operated “Sam's Stationery and Luncheonette” in Bellmore, Long Island, New York. The Supremes of the day affirmed the authority of the State to prosecute Ginsberg for selling a 16-year-old boy two “girlie” magazines in October 1965, in violation of §484-h of the New York Penal Law. It was Associate Justice Abraham “Abe” Fortas who gave us a succinct, second, dissenting opinion that struck a chord with me. He was the only justice to note, “A 16-year-old boy was enlisted by his mother to go to the luncheonette and buy some ‘girlie’ magazines so that Ginsberg could be prosecuted.” He concluded, “But it does not follow that the State may convict a passive luncheonette operator of a crime because a 16-year-old boy maliciously and designedly picks up and pays for two girlie magazines which are presumably not obscene.” This case is an excellent example of what happens when we try to impose our values, our beliefs, our morals, on other citizens. A free society means all citizens must enjoy the Liberty to pursue their particular choices for Happiness, not just the chosen few.

News from the economic front:
-- The Commerce Department reported U.S. consumer spending decreased 0.2% in June, after rising an upwardly revised 0.1% in May -- the biggest drop since September 2009. Incomes rose 0.1% after increasing 0.2% in May.
-- The Institute for Supply Management's manufacturing index was at 50.9% down from 55.3% in June (the lowest level in two years), after an earlier report that the U.S. manufacturing sector barely expanded in July.
-- Japan Finance Minister Yoshihiko Noda announced the government’s intervention in currency markets to stem the speculator-driven rise of the yen against the dollar. The yen weakened suddenly, with the dollar jumping from ¥77.13 to ¥78.20 and the euro from ¥110.72 to ¥111.80. The Japanese government seeks to preserve modest growth in their economy, rebounding surprisingly well from the March earthquake and tsunami.
-- The Labor Department reported nonfarm payrolls rose by 117,000, and revised the previous two months up by a total of 56,000 – stronger than expected. Private-sector employers added 154,000 jobs in July, up from 80,000 in June. Government employment continued to fall, shedding 37,000 jobs. The unemployment rate declined from 9.2% to 9.1% last month.
-- After the markets closed on Friday, Standard & Poor's took the unprecedented action of downgrading the U.S. government's sovereign credit rating one notch from AAA to AA+ -- an action that has never happened to the United States before, and undoubtedly will send deep reverberations through the global financial markets and potentially undermine world economic growth. The other two ratings agencies, Moody’s and Fitch, both have said that they have no immediate plan to downgrade the country’s credit rating, which should mitigate the S&P action somewhat. This appears to be far more a political statement rather than a financial judgment. Just an FYI: other countries that still retain their AAA are: Australia, Austria, Canada, Denmark, Finland, France, Germany, Netherlands, Norway, Singapore, Sweden, Switzerland, and the United Kingdom. As a side note, other countries that have a AAA rating but are small and dependent on other states are: Guernsey, Isle of Man, Liechtenstein, and Luxembourg. Countries with an AA+ rating include New Zealand and Belgium. Countries like Bermuda, Spain and Qatar have an AA rating, one notch lower than the United States.

Comments and contributions from Update no.502:
Comment to the Blog:
“I have found it easier to face commuting by using two methods. (A) I am currently a college student. Most of my courses are online; problem solved. (B) Whenever I drive, I drive only the vehicle of which I am in charge. I remember that others’ driving is not my problem and I allow the amount of time required to arrive at my destination legally and safely. I carry something to read in case I encounter no dimwits, unexpected construction zones, or other unplanned delays, but I get little reading done that way. The specific delays I cannot predict; that I will have delays I can expect.
“Your new Harley may very well bring you a great deal of joy, just not while commuting. If your last 2-wheeler was a 350 and was long ago, please begin with a great deal of caution. I don’t know the motor and drive line of that bike, but Harleys of which I’m aware little resemble a Honda 350.
“I assume that the use of “disperse” rather than ‘disburse’ is intended ironically. The debt limit “debate” (grandstanding) is an example of politics, not of economics. The Congress feels the pressure every so often to show fiscal responsibility, of which it collectively knows nothing. The result of that is nonsense like the debt ‘ceiling.’ I follow a blog written by economists, the leader of which is Simon Johnston, the former chief economist of the International Monetary Fund. Here is my explanation of one thing I’ve learned. That the USA has more debt than income is roughly equivalent to a household that has $50,000 in income and $150,000 in a mortgage and other debt. Both parties pay interest on their debt. So what? I’d rather the banker for the USA’s debt was not China, but that’s not my decision.
“Good luck rooting out hypocrisy in Congress. There’s plenty and that will continue for the foreseeable future. We elect human beings to handle vast amounts of money. Their desire to be re-elected assures that some of the money flows to districts, states, and campaign contributors, deserving or not.
“I believe that Warren Buffet knows more about his tax situation than that reporter. Buffet knows a great deal about money in general and seems to be a responsible citizen, one of the few in his industry. Perhaps we should listen to him.
“My point about ‘professional’ soldiers still holds, I think. The people who have fought the US to a standstill in Iraq, Afghanistan, et al are minimally trained and not organized in the way or to the level of any professional military. Something fundamental has changed.”
My reply to the Blog:
If telecommuting was available to me, I would take it in a heartbeat. You have a good, stable attitude toward driving. My downfall is I have driven in other countries; while there are obvious similarities, there are significant differences that tend to illuminate the deficiencies of discourteous American drivers.
I am keenly aware there is a huge difference between a 1971 Honda 350 Scrambler (350 cc) and a 2011 Harley Road King with its 1700 cc engine and doubled weight. Rest assured, my hero days are long over, and I intend to be a respectfully cautious rider.
Re: debt limit. Yes, spot on!
Re: hypocrisy in Congress. Again, spot on!
Re: Warren Buffet. My point, precisely!
Re: professional soldiers. I thought your comment was directed at U.S. soldiers. Taliban, al-Qa’ida, et al, yes indeedie; the best we could call them is “irregulars” as you said. I do not believe the Taliban has fought us to a standstill. There is ebb & flow in all warfare. It is too early to write off the United States and its allies in the Battle for Afghanistan.

Another contribution:
“I still can recall our days together on Okinawa when you convinced me to buy a motorcycle. Our whole set of officers in D 1/4 ended up owning motorcycles.
“I took mine back to Camp Lejeune with me, but eventually sold it. As CO of K 3/6, I was making too many calls on the orthopedic ward at the Navy Hospital to visit my Marines recovering from motorcycle accidents. No matter how good a rider you are, your are constantly vulnerable to those idiot drivers you now complain about. I think steel frames, air bags and seat/shoulder belts are much safer.
“I wish you luck and hope you enjoy many years of safe riding on your cycle!”
My response:
Ah yes, that is where it all began. I shipped mine back as well. I rode through Flight School and my first squadron (HMA-169). I sold it before heading to Test Pilot School when our first child was born. I recognize and acknowledge the risks. I was taught early and reinforced repeatedly to assume every driver on the road is trying to kill you; it kept me safe during my riding years, and expect it will continue to keep me safe.

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