28 November 2011

Update no.519

Update from the Heartland
No.519
21.11.11 – 27.11.11
To all,
I completed my two-week, post-op, follow-up appointment on Wednesday. Good news! Adjacent, left-side, lymph nodes – clear, normal tissue {recall: right-side tissue clear [512]; right-side, lymph nodes not removed}. Prostate margins clear, except for one “microscopic spot that was indeterminate” – not perfect, but about as close as one can get short of being perfect. Doc said surgery went well, per the plan; results were good, no complications; in his opinion, the indeterminate spot will be OK. My next follow-up check is scheduled for 28.December, which will include my first post-op PSA and a good clue whether the “spot” will be a concern.

The follow-up news items:
-- On Monday, 21.November, the so-called Super Committee – actually, the Joint Select Committee on Deficit Reduction, per Title IV of the Budget Control Act of 2011 {PL 112-025} [503, 504] – publicly announced their failure to reach an agreement. What a shock! Is anyone really surprised? So now, by law, the more draconian 10% across the board budget cuts will take effect in the FY2013 appropriations, in the middle of a war and economic stagnation.

A rather long article that is worth your time, attention, contemplation and public debate:
“Teaching Good Sex”
by Laurie Abraham
New York Times
Published: November 16, 2011
http://www.nytimes.com/2011/11/20/magazine/teaching-good-sex.html
For those of us with grown children, the article is perhaps moot; however, it is our generation that makes and enforces laws. Needless to say, I think we need many more Al Vernacchios, and much less abstinence-only dicta from Congress. I certain support parental right and responsibility to teach their children abstinence-only, if that is their choice. Yet, I also think it is unnatural to deny human physiology and biology in the reality of puberty. Someday, we will mature as a society.

News from the economic front:
-- In yet another shock to the world financial system, Germany sought to issue €6B (US$8.1B) of 10-year bonds, but only sold €3.64B at an average yield of 1.98%. The disappointing sale highlighted how the euro zone's debt crisis is rattling investors as it spreads from weaker states to the bloc's core economies. A representative of the Danske Bank said the bond auction was a "disaster" and reflected investors' deep distrust of the euro project, rather than aversion to German government bonds.
-- The Fitch ratings firm downgraded Portugal's credit rating from triple-B-minus to double-B-plus, with a negative outlook, citing its high debts and poor economic prospects. Lisbon seeks to reduce its budget deficit as part of a €78B (US$104B) bailout package.
-- The Italian treasury sold €8B (US$10.7B) of six-month treasury bills at an average yield of 6.504%, nearly double the rate in the last equivalent auction. The government also sold €2B of 24-month zero-coupon bonds at an average yield of 7.814%. The Italian auction of underscores the challenge new Prime Minister Mario Monti faces to restore the country's fiscal health, in the dark shadow of soaring short-term borrowing costs and €1.9T in debt (120% of GDP).
-- The Wall Street Journal reported that under a proposed European Union (EU) plan, national governments would create bilateral agreements that would not take as long as a laborious changes to EU treaties. Some German and French officials fear that treaty changes could take far too long. Euro-zone authorities seek new powers to enforce fiscal discipline in the 17 countries that make up the euro zone, as they struggle to convince investors they can resolve the region's debt crisis and keep the currency area from fracturing.

Comments and contributions from Update no.518:
Comment to the Blog:
“I agree that feeling and functioning progressively better is a good sign for recovery. I will keep my fingers crossed for your results on Wednesday.
“I had no awareness of the USS Liberty incident until I read your report. I am surprised that I did not know. I find Israel strange. The institutionalized paranoia there and the blind support of the US make it one of the odder players on the world stage, and it is a dangerous force. The fact that the Liberty attack has remained largely unknown might lead to questioning of the entire US-Israel relationship if it became known to the public at large. I doubt that will happen. My guess as to the purpose of the report is that it satisfies either a political obligation or some bureaucratic process. Unless I see TV news stories about this issue, I will not expect any action from the government.
“I share your desire for the rule of law rather than public opinion in the Penn State mess. There is some chance that objective law will prevail, but that is by no means a given. In the meantime, a curious side note. The Penn State football team played our local heroes, Ohio State, this Saturday. The loss of the coaching staffers seems to have been overcome very quickly. Penn State played very well and won.
“On the child sexual exploitation issue, I would rather you had linked to the academic study than to Mr. Kristof’s op-ed piece. Op-ed is a place for opinions, and certainly Mr. Kristof’s writing does not rise above that level. The tone of the piece leaves me in doubt of anything he says. He gives nothing that might illuminate the true scope of the issue, the damage to the children, or anything other than the story that moves him. (Does he make a paycheck by being so moved?) The academic study has more to offer by its very nature. An academic study must give its methods and its sources of information, which may then be evaluated for their information value or lack thereof. A truly legitimate study will give the backgrounds of its investigators, their roles in the study, and especially the source(s) of funding. Funding for a study such as this could come from an objective source, but it could also originate from interested parties of any position.
“To finally address your point, I share your idea of legalizing prostitution. ‘The oldest profession’ will not go away. Consider the changes that would arise from regular inspections of people and premises by health departments and other regulators, with any noise or other law-enforcement issues handled by non-bribed police officers. Between the various regulators, human trafficking would become far more difficult, to whatever extent it exists. I suspect that all or most of that regulation could be funded by savings on law enforcement and, perhaps, a transaction tax.
“However, I doubt that legalizing prostitution would significantly reduce sexual contact by adults with children. (I confidently assume that child prostitution would remain illegal.) I do not see adult-child sex as an easiest way out or supply-and-demand type of issue. Sex is everywhere. Most sex offenders are married, and many enjoy a regular sex life with their spouses. The “presenting” issue with adults who have sex with children is attraction; they desire children as much as they do adults, sometimes much more. Of course, other deeper issues drive that attraction, and the experts continue to study the deeper factors with little progress to date in treating them.
“Another set of information I would like to obtain is the seismic maps and information your other contributor mentioned. I know only the bare beginnings of seismology, but I find it interesting and the importance seems obvious. I would appreciate any help with that. I will note that your contributor used “New Madrid” to refer to the fault line itself, not the town for which it is named. The town is located in Missouri, not Arkansas. I’ve been there; it was a nice place.”
My reply to the Blog:
The Liberty incident is a tragic event in U.S. history. An accident might have been a single strafing pass by a fighter aircraft – NOT multiple passes by multiple aircraft, followed by surface vessels firing five torpedoes and circling at close quarters in an attempt to board the ship. Many pilots and naval vessel commanders would have had to be incompetent, ignorant and otherwise blind. It was not until they knew the armed protective air cover was inbound at high speed that they broke off the attack and initiated diplomatic contact to “apologize.” The U.S. Government apparently gives Israel a pass for violent attacks on U.S. ships and sailors. Nonetheless, as I said, my point was not so much the history but rather noting the similarity with Aslan Soobzokov’s struggle – Jewish (Israeli) assassins apparently have a free pass with the U.S. Government – unprecedented in international relations, to my knowledge.
Clearly, I cannot prove my hypothesis; I do not possess the resources necessary to carry out such a comprehensive study; however, I do agree such studies are sorely needed.
All three sources – the Sandusky Press, the Penn State study, and the Kristof Op-Ed column – represent different perspectives of the same issue. My contention remains, “sunlight is the best disinfectant.” By making as much of the sex trade public, inspect-able, regulated, and open, the more isolated and hopefully identifiable the child sex trade would become, presumably making it easier to investigate and prosecute. Yet, there is no law that can defend against parents selling their 6-year-old daughter into the illegal sex trade. My point was, we can rant & rave and pass a myriad of laws condemning child sex trafficking, but that does not address the root cause; and, I will argue that such laws only exacerbate the deplorable situation (as long as the perpetrators are allowed to hide underground).
A collateral purpose in my proposal would be the refocus of Law Enforcement (LE) resources away from moral projection laws and concentration on injurious behavior that harms person or property.
Regulation of prostitution may not “significantly” reduce child trafficking, but any reduction would be good. If we did legalization / regulation properly, we would make it far more difficult to supply that segment of the sex trade. This is also an international issue – sex tourism to more complacent countries. I do not know if you are correct regarding your assessment of “most sex offenders,” but I do believe other acceptable outlets would relieve some of the pressure.
I would encourage more and deeper studies, as you say. I would advocate a broader set of definitions that go beyond the “lowest common denominator” level of our current morality laws. The Penn State study took the current law as sacrosanct, and I am not so sure. Limiting the scope will yield limited results.
I’ll try to recover those seismic charts and send them separately.

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

21 November 2011

Update no.518

Update from the Heartland
No.518
14.11.11 – 20.11.11
To all,
I went back to work on Monday. I underestimated the difficulty, which was mostly logistical in nature. I adapted and made it through the week. Every day was progressively better, which is a good sign, to my thinking. Next Wednesday is the next big hurdle – pathology results and catheter removal.

In June 2005, the USS Liberty Veteran’s Association produced and submitted to the Secretary of the Army (in his capacity as Executive Agent for the Secretary of Defense), a document titled: “A Report: War Crimes Committed Against U.S. Military Personnel, June 8. 1967.” I believe the purpose of the report, beyond correcting the historical record, was meant to be a catalyst for a formal, public, congressional investigation and subsequent criminal prosecution of the perpetrators of an unprovoked, grievous, intentional attack on the USS Liberty (AGTR-5) while on patrol in international waters off the coast of Gaza and the Sinai, by air and naval forces of Israel. The attack began at 14:00 [B] {12:00 [Z]; 07:00 [R] EDT} on Thursday, 8.June.1967, during the peak intensity of the Six Day War between Israel and her neighbors (Egypt, Jordan & Syria). Weather was CAVU (Ceiling And Visibility Unlimited). One sentence brings the report into clear focus: “The failure of the United States government to undertake a complete investigation of the Israeli attack on USS Liberty has resulted in grievous harm to the surviving victims, as well as to the families of all crewmembers.” The crew of Liberty consisted of 294 officers and sailors of the U.S. Navy (including three civilian advisors). The ship was a World War II cargo transport, converted to be one of the most advanced signals intelligence collection vessels of the day. The savage attack killed 34 Americans and wounded 173 (70% of the crew) during the two-hour struggle. Commander 6th Fleet ordered strike and fighter aircraft to be launched from the aircraft carriers USS America (CV-66) and USS Saratoga (CV-60) to protect Liberty, but all aircraft were recalled prior to engagement. I was a lowly midshipman when the incident occurred, and I cannot recall anyone thinking such an attack was an accident. I recount the history not for a journey down memory lane, but rather to offer another example in direct comparison to the long struggle of Aslan Soobzokov and his family to obtain justice for his murdered father from a recalcitrant government, frightened to impotence at the potential of offending Israel. You cannot kill Americans with impunity no matter who you are or how important you think you are. Aslan Soobzokov and his family deserve better from the government. The survivors of the Liberty attack deserve better.
[FYI: seven months after the Liberty incident, the USS Pueblo (AGER-2) was attacked and captured by naval forces of the Democratic People’s Republic of Korea (DPRK) {North Korea} – historic events both, for different reasons.]

This whole Jerry Sandusky / Penn State sordid debacle has stirred up quite the hornet’s nest. Sandusky’s conduct as described in the Press leaves all of us nauseated. However, lest we forget, he has not been convicted in a court of law with the presentation of proper evidence to demonstrate his guilt beyond a reasonable doubt. I was trying to avoid writing about a man who the Press is portraying as an evil, vicious, pedophilic attacker. This story will play out in the Press (it seems) and the courts; I trust justice will be served. I do not support Sandusky being lynched by a riotous mob, whipped into a frenzy by a ravenous Press. He deserves his day in court. Yet, other coalescent events overcame my aversion. I recently completed reading the executive summary of a study oddly conducted at Penn State by Richard J. Estes and Neil Alan Weiner, titled: “The Commercial Sexual Exploitation of Children in the U. S., Canada and Mexico.” The second stimulant was:
“The Face of Modern Slavery”
by Nicholas D. Kristof – Op-Ed Columnist
New York Times
Published: November 16, 2011
http://www.nytimes.com/2011/11/17/opinion/kristof-the-face-of-modern-slavery.html
I fully recognize and acknowledge the instinctive drive within every normal parent to protect their children and grandchildren from harm of any kind. Kristof uses the highly charged, emotional plight of a Cambodian child, Srey Pov, then 6-years-old, who was sold by her family to a brothel, and shortly thereafter raped, as if for sport to take her virginity [you can read the rest of the story in Kristof’s column]. Yet, as seems to be our societal penchant, Nick focuses his righteous indignation on treating the presented symptoms rather than the root cause. The same can be said of the Penn State study; there is little discussion that might lead to a more progressive, solution-based dialogue. They simply add emotional fuel to our urge of moral projection and punishment of offenders. I see the exact same forces at play in this arena as were so graphically portrayed in Ken Burns’ “Prohibition” series. When we prohibit something, we inherently force that activity underground, induce extremes, and inadvertently nurture an array of criminal enterprises that supply that demand. Child trafficking is no different. While I imagine there are true diabolical pedophiles who seek domination of children as some exaggerated demonstration of their power, I suspect most practitioners are actually after sexual gratification by the path of least resistance. I acknowledge straight-away that any generalization of human behavior is fraught with risk and mischaracterization. Nonetheless, as our grandparents did in 1933, we must recognize that freedom has a large or unpleasant side – that is the nature of Liberty. While legalization / regulation of prostitution would not totally eradicate child trafficking or child sexual abuse, I truly believe it would significantly reduce the illegal practice; 1.) it would make it much harder for the criminal element to hide, and 2.) it would provide a structure for the protection of both customer and provider. Even if prostitution was recognized by society as a noble profession, as it should be, there would still be those few who are driven to abuse children. Let us focus on the real root cause and not the symptoms.

News from the economic front:
-- The Commerce Department reported U.S. retail sales rose to US$398B, up 0.5% in October from the prior month. The data suggests that consumers may be willing to spend during the upcoming holiday shopping season. Wholesale prices fell a seasonally adjusted 0.3% in October from a month earlier.

Comments and contributions from Update no.517:
Comment to the Blog:
“I’m glad to learn that your surgery went well. Take good care of yourself.
“The voters in Mississippi have shown us that they see the fallacy of taking an idea to its most extreme expression. Here in Ohio, we defeated a law our radical legislature had passed that would have removed bargaining rights for State employees. I find myself tentatively agreeing with some of the analysts who see these developments as a rejection of extremism in general. Rulers of any sort, all the way back to the beginning of history, seem to have a tendency to lose their perspectives. The genius of representative government is that the ordinary people retain their good sense longer than the politicians. Thus, as long as the people retain the power to remove or discipline the politicians we have a chance to thrive despite the failings of our ‘leaders.’”
My reply to the Blog:
Thank you for your kind words. I will do my best to recover quickly. Thankfully, Jeanne has been taking very good care of me.
I did not have the time to research the Ohio initiative. I have mixed feelings. There is no competition in government – no check & balance. Public sector pensions tend to be far more generous than the private sector.
Well said, re: representative government. Unfortunately, we do not exercise our voting power quickly or promptly enough to my liking.

Another contribution:
“Finally taking some time to catch up on overdue communications.
“Hopefully this finds you recovering without any further surprises or complications. As if your health hasn’t been enough having to be concerned with your work welfare can’t be easy either. God speed on full recovery and getting things back to normal for not only your sake, but that of your wife and family.
“Reading of the earthquake in Oklahoma, I decided to share some information. There actually is a fault zone centered SW of OK City and from everything I’ve been able to put together, this quake really has nothing to do with New Madrid in NE Arkansas.
“There are a couple other issues that could be at hand that may have contributed to the ‘trigger’ of this fault zone. One has been discussed (fracking) and the other is the dropping of the Ogallala Aquifer. Most people do not realize that the world’s largest underground fresh water supply lies under the states of Nebraska, Kansas, Oklahoma, and Texas. This aquifer has been steadily dropping for the past 20-30 years as the drought in the upper plains (Nebraska Sand Hills, South and North Dakota), has not allowed for its replenishment. Demand and usage has significantly outweighed its replenishment. That being said, no one has yet been able to really grasp the impact on the underground structure. When you start adding this potential for cavities and spaces to be generated, along with the Hugoton natural gas fields being “fracked” it stands to reason that the natural seismic regions will begin to strain and eventually something will have to give. Anyway, these are some of the most obvious elements to the quake.
“I’ve included maps and information we use for the construction industry that shows the major seismic regions of the U.S. The most active are San Andreas (CA), Yellowstone (WY/UT), New Madrid (AR), and Charleston (SC). You will also see some minor regions across the plains (OK, Fort Riley, Yankton).”
My response:
Yeah, it’s not been an easy or comfortable few weeks. However, it appears the worst is past. The next big hurdle should come next week with the follow-up check, get the detailed pathology report, and map-out subsequent actions, if any. Each day gets better, so that is a positive sign.
The OK quake had an epicenter NW of OKC. I think we’re all in agreement – not associated with New Madrid.
Good point about the diminishing Ogallala Aquifer. Hopefully, the geologists will get this sorted out, so we know what to expect, henceforth.

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

14 November 2011

Update no.517

Update from the Heartland
No.517
7.11.11 – 13.11.11
To all,
. . . a more detailed update to the Update [sent 11.November.2011]:
Preparation began a week prior with my pre-op registration and examination, which included blood tests and EKG, and restrictions on some vitamin supplements, alcohol, caffeine, et cetera. I was deemed healthy enough to tolerate surgery. I had nothing to eat or drink after midnight before surgery. We arrived at the hospital two hours prior to the scheduled surgery time. I was ready at 11:45. They said there was an hour delay from the 13:00 scheduled time, so we waited . . . Jeanne and Patty keeping me company. At 14:00, the surgeon came to get me and wheeled me from the preparation room to the surgical suite. He said, “Here’s the machine.” The anesthesiologist said, “Here’s an oxygen mask for you,” and I was gone . . . must’ve been something in the gas. The next thing I remember was circa 19:45 in a room of the 8th floor, surgical, recovery ward. Of course, they had me wired for sound – vital signs good, no leaks. Jeanne fed me a liquid supper before she went home to sleep. Thank you Jacy for tending the dogs. A nurse woke me up every hour to take my vital signs, which did not make for a restful sleep for me. The next morning, I checked out the aftermath of the RALP procedure – six, small incisions scattered across my lower abdomen, including one for an abdominal drain. The most discomfort seemed to come from the retention of air in my abdominal cavity that had been used to inflate my abdomen for better access to the organs in question. I took my first walkabout circa 09:00 the following morning – a little slow but acceptable. The surgeon visited at 12:30 to officially report that the surgery went well. He removed my prostate, seminal vessels, and adjacent lymph nodes; all looked good externally; however, the truth will come in the detailed pathology report, perhaps late next week, more likely to be discussed at our follow-up appointment. He declared me good to go. We arrived home at 14:30 CST on Thursday. My task now is to follow instructions precisely for the quickest possible recovery.

Two days into my convalescence, I received several text messages and telephone calls that the company laid off or gave 60-day notice to 300 employees on Friday. I was informed indirectly that I was not among the layoffs. I understand I will have a new assignment, but I will not learn officially until I return to work, hopefully Monday.

Mississippi Initiative 26 to amend the state’s constitution and define personhood under the law as “every human being from the moment of fertilization, cloning or the functional equivalent thereof,” failed 43-57%. Thank goodness! Using the law to enforce moral values is not the way we should resolve social issues. The initiative was a bad idea from the get-go. I am confident we can all agree that abortion is an important, serious issue that demands an equitable solution. This initiative was not the way to a good solution.

L’Affaire Madoff [365]:
-- The Washington Post reported that the Securities and Exchange Commission (SEC) disciplined seven agency employees over their handling of the Madoff affair. An eighth person resigned before disciplinary action could be taken. The SEC has been sharply criticized for failing to act on repeated warnings that Madoff's prominent investment business was a fraud.

Comments and contributions from Update no.516:
Comment to the Blog:
“Your earthquake story is interesting. I have already seen an article questioning whether ‘fracking’ (hydraulic fracturing) has caused earthquakes in Britain. There’s certainly logic to that; the process is designed to fracture rock layers. Also, in a TV story here in Columbus last night (11/6/2011), the Oklahoma earthquake was described as being on the New Madrid fault. Past earthquakes on that fault have been felt as far away as Boston; the past quakes have centered on New Madrid, Missouri, which is between Memphis, Tennessee, and Saint Louis, Missouri. Any way it develops, an increase in earthquakes matters a great deal to many people.
“I mostly want to encourage you to take good care of yourself. Between having surgery and your company’s changes, you will have plenty to do. Please take care of your high-priority business first; we’ll be here when you get back.
“Also, I hope Mr. Soobzokov can get some level of justice. He has had a very long road.”
My reply to the Blog:
I do not believe the New Madrid fault line runs through Oklahoma, which makes the earthquake all the more puzzling. I do not know whether they have fracking operations in Oklahoma either. They certainly have conventional oil wells. Perhaps it was a collapsed, empty, oil dome. Who knows? Hopefully, the USGS will figure it out.
Thank you for your words of encouragement. I am optimistic. In a few more days, we should have the preliminary results.
I know Aslan Soobzokov will also appreciate all the support he can gather. He and his family deserve justice.
. . . round two:
“I didn't think the New Madrid fault ran there either; I wish I'd seen the whole story or seen it repeated later. I'll get around to checking it later. Fracking was part of cable-tool oil drilling back in the 1970s and early 1980s when my older brothers were working on that here in Ohio, and apparently is still a part of fossil-fuel extraction. A large deposit of shale that bears natural gas has been discovered east of here and includes the county I come from "back home." They are having various public discussions of fracking and other drilling-related topics per the local newspaper I read online; whether and how fracking may have evolved I do not know. That one can also use further research.”
. . . my reply to round two:
The oddity of multiple earthquakes where no known fault lines exist created a valid and appropriate research topic. Our local newspaper had offered its headline:
“Scientists search for link between man and earthquakes in Oklahoma”
by Dan Voorhis
Wichita Eagle
Posted on Sat, Nov. 12, 2011
http://www.kansas.com/2011/11/12/2099938/scientists-search-for-link-between.html
A quick Google search identifies many similar articles. Like you, I look forward to the research findings.
. . . round three:
“This is interesting, and I look forward to the report that's due next spring. In the meantime, the paragraph in this story that talks about evidence of quakes elsewhere associated with injection wells appears to contradict, to some degree, the statements from industry and government that no hazard exists. This could get to be fascinating, especially in Eastern Ohio where we have a history of oil drilling and a very strong prospect for future gas drilling with the expectation of fracking. This gas deposit has been discovered recently and the drillers are still in the process of getting permission to develop fields. That makes for an interesting conflict, especially in the poorer counties of Appalachian Ohio and West Virginia.”
. . . my reply to round three:
Interesting . . . fascinating . . . all appropriate descriptors. I look forward to learning more.

Another contribution:
“Big week. I know your thought process is sound regarding your decision. I will be praying for the best and a speedy recovery. And I hope things work out for the best at work as well.
“The talk regarding the Galloping Ghost accident continues, so I will off my two cents worth which I have refrained from doing thus far. You know I have been going to the races for many years, so I offer what I hope is a reasonable perspective of the events that unfolded. The attachment contains that which I put to words a few weeks ago. I put it to words in the hopes that it would be somewhat cathartic in nature.”
My response:
Things will be what they will be, and we’ll deal with what comes. I am optimistic. The truth will come in the post-op and pathology reports.
The crash had to be horrific, especially to be so close. I’ve told a lot of folks about your consistent attendance and participation. I was very thankful to hear that you were OK, and I figure best not to pester you with questions. So, thank you as well for taking the time to write your part of the story. My purpose is why? I think the NTSB will sort this one out. I also hope Bill Whittle’s admonition does not come to fruition.

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

07 November 2011

Update no.516

Update from the Heartland
No.516
31.10.11 – 6.11.11
To all,

On the upside, we spent the weekend with our local grandchildren while their parents enjoyed the big city and the Seattle Seahawks vs. Dallas Cowboys. While the parents had some fun, we went bowling, played dominoes, and watched movies, although Aspen Shae had a babysitting assignment Saturday night. Grandchildren are such a treasure. To top it off, the Cowboys won.

I was awakened out of a dead sleep at 22:53 [S] CDT, Saturday, 5.November.2011, by a low rumble that swayed the entire house modestly and rattled loose objects. My mind raced through various possibilities, eliminating the threats first, and quickly settled on an earthquake – very rare for Kansas. I quickly checked on the grandkids and the house; all good, no harm done . . . well, other than a few exterior cracks that I photographed the following day and will need to have inspected. We turned on the local TV news that reported on a 5.6 magnitude earthquake with an epicenter near Sparks, Oklahoma – a little Saturday night excitement for us.

The time has come. This is the last Update prior to my surgical procedure. Thank you all for your generous words and well-wishes. I certainly expect the next Update will be published on time, and will recount a successful operation and the preliminary results. However, if I miss next week’s Update, please be patient. I shall return.

As if that was not enough, our CEO announced that economic and market conditions have not recovered from the Great Recession thanks in no small part to our beloved politicians repeatedly vilifying the general and business aviation industry. As a consequence, we face another major Reduction In Force (RIF) and a significant restructuring next week. The hits just keep coming. In this instance, I shall ask for best wishes to weather the storm.

The follow-up news items:
-- I recognize and acknowledge that most folks do not concern themselves with aircraft accidents and especially the modified racer, Galloping Ghost, Reno accident [509/510]. I am awaiting the NTSB report. Until then, I suggest the following video essay forwarded by a friend, colleague, classmate and contributor.
“After this, nothing more needs to be said about the Reno crash:
http://www.youtube.com/watch?v=jCBbosq9-RI
I had not considered that freedom was involved in an aircraft accident, yet Bill Whittle makes a valid and relevant comment worthy of everyone’s attention.
-- Aslan Soobzokov sent another update in his quest for justice on behalf of his family and his assassinated father (1985), Tscherim Soobzokov [474, 480, 496, 507].
“Dear Cap:
“Enclosed please find the appellate brief that was filed in word format and the appendix printed in pdf format. The appendix contains exhibits, which you should see.
“Please review the appellate brief.
“May you and your family be healthy and happy upon receipt of this communication and always.
“May God bless.
“Aslan”
With three (3) attachments:
alfofpetitionerAslanSoobzokovx3rdcourtofappealson10.1.11.doc [brief]
briefandappendixvol.I.pdf [appeal brief submittal]
AppendixVolumeII.pdf [exhibits in support]
The key for me in Aslan’s case rests in two sentences from his briefing to the 3rd Circuit Court of Appeals. “In light of the extensive history by the [Government] in their attempt to prosecute Soobzokov, their subsequent supposed investigation of his murder was suspect and continuous to be suspect.” It is important to note that two federal grand juries refused to bring an indictment against Tscherim Soobzokov, and several additional immigration investigations also failed. He went on to note, “It cannot be disputed that the underlying reasons for Soobzokov’s death stemmed from false and unfounded allegations of Soobzokov being a Nazi war criminal.” The sad, ney tragic, reality in the Tscherim Soobzokov case is, no one has submitted any public evidence of any criminal activity in his life, let alone war crimes. The government’s foolish action of making the Soobzokov investigation public, based on not much more than emotional, circumstantial, indirect information (not even evidence) resulted in the inflammation of retributive, vigilante murder. Aslan sought remedy from both the executive and legislative branches without relief, and as a consequence, he “has no recourse but to file the petition for a Writ of Mandamus.” The Soobzokov family deserves justice. They have yet to receive it.

I offer the following essay to help us understand what happened, leading up to the 2008 mortgage collapse and banking crisis:
“Gambling with Other People’s Money – How Perverted Incentives Caused the Financial Crisis”
by Russell Roberts
Mercatus Center – George Mason University
Published: May 2010 (28.April.2010)
http://mercatus.org/publication/gambling-other-peoples-money
I strongly recommend the Roberts essay for anyone who still seeks to understand why. It is the best explanation of the root cause of the situation we have all endured and continue to pay for with our taxes and lost net worth. I had a few questions and chose to write the author for answers.
Russell,
A friend and contributor to my Blog sent me a copy of your May 2010 essay, “Gambling with Other People’s Money.” As acknowledged in this week’s edition, you offered the best explanation of the banking-mortgage crisis I’ve read to date. For that, thank you very much for taking the time.
I have a couple of questions.
1. On page 20, you stated, “The act even allowed the capital gains on a second home to be tax-free . . . .” I have searched the Taxpayer Relief Act of 1997 (TRA97) [PL 105-034; 111 Stat. 788] to find that provision in the law without success. Would you be so kind to offer a few clues regarding the basis of your statement? Clearly, such a provision in the law adds fuel to the emotional fire of your argument.
2. Given the topic and content of your essay, I wondered why you did not include the banking deregulation provided in the Financial Services Modernization Act of 1999 (FSMA) [PL 106-102; 113 Stat. 1338], as a contributor to the mortgage bubble and the apparent sense of invulnerability in the mortgage lending and derivative business?
Again, thank you for sharing your insight.
Cheers,
Cap
. . . I received a prompt reply:
“If you Google "taxpayer relief act 1997 second home" you will find many examples. Here is one description from a research paper out of the Federal Reserve:
“‘TRA97 was signed into law on August 5, 1997. Effective for sales after May 6, 1997, it fundamentally altered the tax treatment of housing capital gains. First, TRA97 eliminated the roll-over rule. After 1997, the tax treatment of housing capital gains no longer depended on whether a home seller bought a replacement home or the value of the replacement home. Second, it eliminated the age-55 rule. Older home sellers now face the same tax treatment as their younger counterparts. Third, it allowed home sellers to exclude $500,000 (or $250,000 for single filers) in housing capital gains if they have owned and lived in their homes for at least two years during the past five. There is no limit on how many times one can claim such exclusions during one’s lifetime, and the required two years of ownership and use during the five-year period ending on the date of the sale do not have to be continuous. In fact, one can even claim the capital gain exclusion on a second home, as long as the ownership and use tests are met.’
“On FSMA I refer to it in passing saying:
“‘Though other factors—the repeal of the Glass-Steagall Act, predatory lending, fraud, changes in capital requirements, and so on—made things worse, I focus on creditor rescue, housing policy, tax policy, and monetary policy because without these policies and their interaction, the crisis would not have occurred at all. And among causes, I focus on creditor rescue and housing policy because they are the most misunderstood.
Russ
. . . my gratitude:
Russ,
Thank you for your prompt reply. Please accept my apologies for failing to make the connections in both questions. Again, thank you for your illuminating essay.
Cheers,
Cap

News from the economic front:
-- The Federal Reserve’s Open Market Committee voted 9-1 to leave their credit policies unchanged for the first time since August, citing an economy that remains a concern over the next two years, although they did express some modest optimism about the recovery. Chicago Fed President Charles Evans dissented as he sought more action to ease credit further.
-- The G20 economic summit occurred this week and was dominated by the Greek debt situation, namely the Greek prime minister’s decision to put the European Union’s rescue plan to a public referendum [515]. Europe's leaders, making plain that they've reached the end of their patience with Greece, demanded that the beleaguered nation declare whether it wanted to remain in the euro currency union—or risk going it alone in a dramatic secession. German Chancellor Angela Merkel said, “Does Greece want to remain part of the euro zone or not, that is the question the Greek people must now answer.” Under what had to be extraordinary pressure, Prime Minister Papandreou backed off, after imparting enormously more uncertainty in the market.
-- The European Central Bank (ECB) reduced its prime interest rate to 1.25% from 1.5% amid a deepening sovereign-debt crisis and signs of a slowdown in the euro zone's economy. The move comes as Mario Draghi replaces Jean-Claude Trichet as ECB President.
-- The Labor Department reported the U.S. economy created 80,000 jobs in October, with the private sector adding 104,000 positions, as all levels of government continued to trim their payrolls. The unemployment rate edged downward to 9.0% last month from 9.1% in September. Payroll data for the previous two months were adjusted upward by a total of 102,000 to show 158,000 jobs were added in September and 104,000 jobs in August.

Comments and contributions from Update no.514:
“Had to do some reading on that surgery technique. Doesn't seem like you can get any more high tech than that!...minimally invasive, quicker recovery time, and much better success rate with regard to avoiding the possible adverse long term side effects of a prostatectomy via other surgical methods. It is so fortunate that you are able to benefit from this technology and surgical advancement. Our sincerest best wishes for the best outcome and we will anxiously await your first post-surgery update. possible, and for your next "50 years" to be cancer free. Our thoughts and prayers will be with you on the 9th.”
. . . my reply:
Always comforting to have good cover.
Yes, I am fortunate in that context. I recognize that not all outcomes are positive with any technique; however, the RALP has the best results to date. Also, the urologist/surgeon has a very good track record and great referrals with the machine and this procedure. I am eager to get ‘er done. I want that crap out of my body.
I’ll definitely let you know when I’m out the other side.

Comments and contributions from Update no.515:
“The prohibition by any government of private behavior that does not infringe upon the rights of others is unacceptable. The repeal of prohibition is a foundation of the freedom to choose, including the teaching of admirable values for all, but not enslaving people to obey. The loss of freedom is perhaps the most immoral state of all.”
. . . my response:
Absolutely. Now, we only need to convince 320 million other citizens, and direct our representatives to repeal or amend the law, to get the government out of our private affairs.
The issue of “no injury to others (person or property)” is essential to freedom and respect for the choices of others. The first hurdle is amending the law to recognize an individual’s freedom of choice for his particular pursuit of Happiness. The second hurdle will be the definition of injury. The moral projectionists among us cannot fathom anyone choosing to be a sex worker, i.e., prostitute, thus they must be doing so under duress; when in fact, there are plenty of women and men who prefer it, enjoy it, and make a good living doing it, providing a service in public demand. As long as both customer and provider are doing so of their free will and are not transmitting any diseases, then I respectfully submit there is no injury. Further, both customer & provider are protected.

Comment to the Blog:
“I have only seen parts of Ken Burns’ Prohibition; the parts that I have seen are excellent. I will be watching the whole thing courtesy of my local library once this accursed college process ends. In the meantime, I want to state how much I agree that we can substitute “anything” that is seen as sinful for alcohol and repeat the painful process of Prohibition as we are already doing with drugs and prostitution.
“I do want to stipulate, however, that actions affecting others can and should be regulated. My best example of this is allowing banks to become “too big to fail,” thus requiring government bailouts (your tax dollars and mine) when they make insanely risky loans and investments.
“I will quarrel with one point of your analysis of the Greek situation. You attribute this situation partly to the Greeks’ “socialism.” Before you do that, you might want to look at the governance of the sounder economies in Europe, especially Germany and the Scandinavian countries. The root cause of the Greek mess, as in the United States, is banks (not just Greek ones) making huge, risky loans that eventually require government bailouts. The good news in the Greek situation is that the banks are taking a 50% loss on those loans. The bad news, really bad, is that the EU has increased its bailout fund. I recommend reading 13 Bankers by Simon Johnson for a clearer view of this. This book minimizes and clarifies the technical economics involved in the situation.
“That Iran still has a mobile phone provider is unfortunate but unsurprising. Someone will always provide a service for which others will pay, whether that provider is a Chinese telecomm giant or the girl on the corner. That a government (any government) is paranoid enough to track as many of its citizens as thoroughly as it can seems like old news to me.
“I’m glad the economy is beginning to show signs of life. Perhaps it will sit up and begin functioning soon. I hope so. I’m about to graduate college with a very large student loan debt.”
. . . my reply to the Blog:
I am certain you will enjoy Prohibition and find it enlightening; now, if we can only learn and apply that lesson.
Yes, indeedie. Freedom of choice does not entail any right whatsoever to cause injury (person or property) to another citizen. Banks “too big to fail” is another excellent example; they caused injury to a lot of people.
Good point. I was wrong to vilify socialism in general. After all, Sweden is perhaps one of the most socialist countries, and they remain stable. So, the culprit is not socialism by itself, no more so than capitalism is the root of all evil. Like most ideology, it is the application by flawed men that causes most of the problems. In the case of Greece, we add in a healthy dose of corruption and nepotism to the mix. When people expect something for nothing, the foul brew has begun to ferment. Private investors are taking the 50% cut, which is simply a different way for everyone else to pay for Greece’s insane spending. Even with the 50% cut, the debt to GDP ratio is still 120% -- incredible! I cannot imagine any sane person can see such debt as sustainable. Perhaps it was a cold-calculation that they could spend like crazy, knowing their EU membership would pay the bill . . . sovereign extortion, if you will.
OK, so the PRC-IRI connection is not disturbing.
We all want the economy stable and growing again. We still have some crevasses to cross ahead before I start to breathe easy again.
. . . a follow-up comment:
“I cannot resist pointing out the past tense you used in saying the ‘too big to fail’ banks ‘caused’ injury. They have not gone away or been made smaller. The only hope I can see of that is the move to take accounts out of those banks over the fee fiasco, and that probably will not come near the change we need.
“On a related note, I tend to think that at least part of the cold calculation you mention is on the part of the biggest banks. They can borrow more cheaply than sounder institutions based on the perception that they will be bailed out of their undue risk when the economy collapses again where smaller banks will fail as so many have. That's the same in the EU as in the US, and nobody is putting a stop to it.”
. . . my follow-up reply:
Good point; I agree. Any bank that was too big to fail in 2008 should be broken up into smaller units that can and should suffer the consequences of unreasonable risk. It seems to me the Sherman Antitrust Act [PL 51-190; 26 Stat. 209 (1890)] remains relevant and applicable in this instance. The Dodd-Frank Wall Street Reform and Consumer Protection Act [PL 111-203; 124 Stat. 1376 (2010)] [468] did not go far enough to reform the banking and investment industries. Bankers apparently want all the benefit without any of the risk. You are of course spot on . . . the bankers are right back to business as usual. We may have missed the opportunity.

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