21 May 2012

Update no.544

Update from the Heartland
No.544
14.5.12 – 20.5.12
Blog version:  http://heartlandupdate.blogspot.com/
To all,


Question of this century:
Why have compromise and moderation become such spiteful words in the American political lexicon?

Two relevant quotations from history, provided by the conservative Blog Patriot Post:
            “There are more instances of the abridgment of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations.”
--James Madison, speech to the Virginia Ratifying Convention, 1788
            “Sometimes it is said that man can not be trusted with government of himself. Can he, then, be trusted with the government of others? Or have we found angels in the forms of kings to govern him? Let history answer this question.”
--Thomas Jefferson, First Inaugural Address, 1801

“Five myths about gay marriage”
conversation with Jonathan Rauch
Washington Post
Published: May 14, 2012

I thought I had a fairly decent education in American History.  Occasionally, I am reminded that neither my childhood instruction nor my subsequent novice curiosity and interest were as comprehensive as I believed.  I suspect many of us had an incomplete course of instruction, or perhaps, it is just me?  My latest journey of discovery began via the Supreme Court’s “political question” doctrine application in Zivotofsky v Clinton [565 U.S. ___ (2011); no. 10-699] [538] that led to the reapportionment case in Baker v. Carr [369 U.S. 186 (1962); no. 6] [539], which in turn ended up with this week’s reading – Luther v. Borden {48 U.S. [7 How.] 1 (1849); 12 L. Ed. 581 [1849]}.  The Luther case first articulated the “political question” doctrine, which admonishes the Judiciary to avoid decisions regarding political questions that are the rightful domain of the political branches – Executive & Legislative.  The object of the Luther case was the Dorr Rebellion of 1842.  If the American History curriculum of my youth covered the Dorr Rebellion, I must have slept through the class; however, I believe it was never mentioned.  We learned about Shay’s Rebellion in Massachusetts (1787) and the Western (or Whiskey) Rebellion in Pennsylvania (1791), but not even a whisper about the Dorr Rebellion.  So, what was the Dorr Rebellion?  Our story begins on 24.November.1663, when an assembly of the People of the Colony of Rhode Island and Providence Plantations accepted the Royal Charter of 1663 issued by King Charles II.  They retained the charter government through statehood.  The subject crisis grew from the fact that the State of Rhode Island and Providence Plantations chose not to establish a constitutional state government when their representatives signed the Declaration of Independence (1776), ratified the Articles of Confederation (1777) and the U.S. Constitution (1790). The Charter entitled freeholders to vote on presented issues and for representatives, and a freeholder was defined as a male state resident who owns local property for a specified length of time.  A popular movement to broaden the right to vote began to coalesce in 1835.  The disenfranchised sought redress each session of the legislature . . . to no avail.  The issue came to a head in 1841, when a large group of residents gathered in Providence to write a new constitution to replace the Charter.  The so-called “People’s Constitution” [AKA Freeman’s Constitution] was proclaimed and promulgated on 13.January.1842, and granted all white, 21-year-old males the right to vote, which did not impress freemen with dark skin pigmentation.  The People held an election in April to ratify the new constitution and elect Thomas Wilson Dorr as their new governor.  Dorr tried to form a government on 3/4.May.1842, and led armed citizens in an attempt to take possession of the state militia arsenal on 18.May.1842.  The assault failed.  On 25.June.1842, the charter General Assembly of the State of Rhode Island and Providence Plantations enacted and declared martial law.  Four days later, John T. Child led troops from the 4th Regiment, 1st Brigade, Rhode Island Militia, and forcibly entered the residence of Martin Luther, a citizen of the State of Massachusetts, to arrest citizens alleged to be conspirators in the rebellion.  The President and Congress chose not to interfere in the Rhode Island political crisis.  Martin and Rachel Luther filed suit claiming their 4th Amendment right against unreasonable search and seizure had been violated.  Interestingly, for the Luther case before the Supremes, Associate Justices Catron, Daniel, and McKinley were absent on account of ill health when this case was argued.  Chief Justice Roger Brooke Taney wrote for the Court and noted, “Suffrage is a delegation of political power to some individual.  Hence the right must be guarded and protected against force or fraud.”  He went on to conclude, “No one, we believe, has ever doubted the proposition, that, according to the institutions of this country, the sovereignty in every State resides in the people of the State, and that they may alter and change their form of government at their own pleasure. But whether they have changed it or not by abolishing an old government, and establishing a new one in its place, is a question to be settled by the political power. And when that power has decided, the courts are bound to take notice of its decision, and to follow it.”  In essence, the Supremes dodged the bullet.  Associate Justice Levi Woodbury dissented, based largely on his contention that Rhode Island exceeded its authority in declaring martial law to suppress the rebellion.  Fifty years after the states ratified the Constitution, American citizens and residents of the State of Rhode Island and Providence Plantations faced a classic Catch-22 – the People can reform government but only through the government, and the government, in turn, seeks to preserve itself and thus rejects the reformation.  The entire episode was about a citizen’s right to vote for his choice of republican representatives.  Sadly, universal suffrage would not be realized until 1965.  The Dorr Rebellion gives a not-so-pleasant look into our history and offers another uncomfortable example of how we have not always lived up to the ideals we espouse.  Let us not forget the Dorr Rebellion.

Comments and contributions from Update no.543:
Comment to the Blog:
Subject: [Update from the Heartland] New comment on Update no.543.
From: "Calvin R"
Date: Mon, May 14, 2012 10:34 am
To: cap@parlier.com
Calvin R has left a new comment on your post "Update no.543":
“Your health news sounds very good. I hope your employment situation clarifies just as well.
“The only obvious mistake in the article you linked is where the writer says the speaker is ‘not a godless heathen.’ That contains an oxymoron. The young speaker is indeed not a heathen, but heathens have plenty of gods, just not Christian ones. Beyond that, I would like to point out that Christianity (or any religion) is not a legitimate basis for public policy in the United States. In any case, per Wikipedia Christianity is in a long decline in the developed world. Christians’ attempts to cling to political influence just hasten that decline. The North Carolina results will change eventually, when North Carolina wants or is compelled to move into the current century
“The tea baggers have won some of the Republican primaries, thus harming the Republican Party. We need to remember amidst all the hype, hoopla, and hogwash of the political season that most American voters have not lost their minds. Just because a candidate can attract 51% of Republican primary voters by using a lot of extreme rhetoric does not mean that a majority of voters will buy the same stuff. What I think will make this season more interesting is that both of the major-party candidates for President have issues with their own bases. Romney is a Mormon and has much too moderate a record for many Republicans. Obama’s claims of ‘war powers’ sit very poorly with Democrats who also see him as giving way to Republican minorities on too many issues. This will be another election where people must hold their noses to vote.
“The current JPMorgan fiasco gives still more support to our mutual position that ‘too big to fail’ is simply too big.”
My response to the Blog:
Calvin,
            Re: health.  Yes indeed! 
            Re: employment.  Jury is still out; the dust storm still blows.  Time shall tell.
            Re: religion in public policy.  In the main, I would agree . . . thus, Jefferson’s admonition to keep church and State separate.  History is replete with examples to validate Jefferson’s observation.  On the contrary, religion has also tried to order society, to diminish bad traits or actions, and encourage respect for others.  There is much good in religion in contrast to the often parochial interpretations by flawed men to incite the believers to violence in the name of God – in defiance of those teachings.
            Re: voters.  I sure hope you are correct.  Extreme political rhetoric in any direction is not productive, helpful or consistent with the founding principles.  Interesting observations regarding this silly season.
            Re: “too big to fail.”  Spot on!  Yet, JP Morgan Chase is hardly close to failure or even jeopardy, just a little less profit and perhaps dividends for stockholders.  The bank happens to have a shareholder’s meeting this week, which should be quite incendiary.  To me, the far more injurious aspect of this event is seismic trauma to our fragile faith in our financial institutions and system.  The market impact inflates the lack of confidence.  Whatever responsible bankers there may be out there, they will soon suffer for Chase’s mistakes.
Cheers,
Cap
 . . . round two:
Tue, May 15, 2012 8:47 pm
Cap,
“There is some degree of good in almost any religion but a great deal of conflict among them, particularly if one considers religions as different as mine versus conservative Christianity or Islam. Society ought never to kowtow to any given form of religion, particularly as none of them shows any respect for the large, growing, and often admirably moral population of atheists. If I had an either/or choice, which could easily happen here, I would vote for an atheist over any believer in any religion who saw his or her religion as an appropriate guide for the larger society.
“I do not understand why you would see ‘faith’ in our poorly regulated financial institutions as a good thing. I used to have faith in those who regulated them, but that day has passed, perhaps to return if government can free itself from the bonds of campaign contributions. Responsible bankers need not fear regulation, but the likes of JP Morgan Chase are not responsible bankers.”
Calvin
 . . . my response to round two:
Calvin,
            Re: religion.  Well said!  Religion is a private matter – a means of individual strength, comfort and guidance.  Religion has no place in public life or political debate.  From my perspective, any religion that cannot accept and tolerate another, different religion, including atheism, also has no place in a free society.
            Re: regulation.  We have reason to be dissatisfied with the effectivity of regulation on a variety of topics that are important to the People.  We are not yet to the point withdrawing our funds and stuffing them in a mattress or coffee can buried in the backyard.  Banks give us reason to doubt.  Let us not forget our contribution to this crisis.  We expect constant, perpetual, property value increases, and ever increasing profits on investments, driving bankers to search for ways to satisfy that demand.  Perhaps, we should blame capitalism.  Perhaps, we should all just embrace communism as the inevitable ultimate equilibrium.  Yes, the banks deserve our condemnation.  Yes, the regulators deserve our contempt and our reformation.  Let us also look at ourselves and our unreasonable expectations.  Let us not focus our ire on one element or the other.
“That’s just my opinion, but I could be wrong.”
Cheers,
Cap
 . . . round three:
Subject: Re: [Fwd: [Update from the Heartland] New comment on Update no.543.]
From: "Calvin R"
Date: Wed, May 16, 2012 7:37 am
To: "cap"
Cap,
“I suspect the economy, as with other issues, could be simpler than it looks. Follow the money and solve the mystery. Blaming the middle-class people who believed intense marketing by realtors and bankers presented without resistance by the media over several decades is disingenuous at best. That conflicts with the idea in your original posting that ‘faith’ in banking institutions is a good thing. Either we believe what we're told by experts or we're basically on our own in a very complex field.
“I assume you meant your capitalism versus communism statement as sarcasm. We both know that any given government will not choose either ‘pure’ communism or totally unregulated capitalism, or at least not for long. The discussion concerns the appropriate level and type of regulation. JP Morgan Chase has given us another bit of evidence for that discussion.”
 . . . my response to round three:
Calvin,
            Re: middle class.  It is not my nature to blame anyone, but I try to do the best I can to understand the broad perspective.  Sure we can focus on the banks; they are logical, appropriate contributors.  The warning caveat emptor (buyer beware) has been true at least since the heyday of the Roman Empire.  Let us make sure we look at the whole equation.  I suspect we are in violent agreement.
            Re: communism.  Yes, sarcasm! 
            Re: regulation.  I believe I noted in my original opinion [543] that the Dodd-Frank Wall Street Reform and Consumer Protection Act [PL 111-203; 124 Stat. 1376; 21.July.2010] so-called Volcker Rule [Title VI, § 619 et al] had been successfully watered down by banking lobbyists.  Again, I believe we are in agreement.  From what we know so far, it appears JPMorganChase may have violated portions of Dodd-Frank, and if so, they should and hopefully will be prosecuted.  We shall see.
Cheers,
Cap


Another contribution:
“Re the Greek situation- the country had been courting this for decades…They don’t pay taxes there, tax evasion is almost a national sport, and the government has not cracked down.  In addition, for years, they were providing the EU fudged financial reports, until a minister decided that he would not continue the practice. Then things really started going downhill.”
My reply:
Jan,
            Re: health.  Thx mate.  Very encouraging but a long way to go still.
            Re: Greek situation.  Spot on!  And, apparently, the Greeks feel no compulsion or inclination to pay the price for living beyond their means.  They choose to evade their tax liability or enforce their tax code.  They chose to live as they do.  They will pay the price one way or another.  As I used to tell our kids, we can do this the easy way or the hard way, your choice.  For the Greeks, it is the hard way or the harder way.  Disintegration from the EU will not be easy, but that appears to be the way they are headed.  Whatever they are going to do, they need to make the move and be done with it.  The markets have to stabilize, and the Greeks left to their fate.  We are paying the price for their largesse.
   That’s my opinion and I’m sticking to it.
Cheers,
Cap

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

2 comments:

Calvin R said...

Compromise and moderation have become such spiteful words in the American political lexicon because the culture of greed demands no less than everything. Thus, “compromise” in that context comes to mean “give me what I want and shut up about it.”
I think of myself as a student of history and I was likewise unaware of the Dorr Rebellion. However, I have enough study behind me to be dubious when someone asserts that they can do something because “it’s a free country.” Catch-22 came along long before that book named it and remains alive and well.
You mentioned the market in your discussion of JP Morgan Chase. As others have pointed out (Baseline Scenario, for example), the markets do not regulate banks the size of JP Morgan Chase. Other lenders and investors remain aware that the tab for their mistakes will be paid by taxpayers; market forces might apply to smaller banks, but not to them.

Cap Parlier said...

Calvin,
Re: compromise. Both poles are comparably intransigent. Your observation is certainly validated by the public statements of Richard Mourdock [543]. However, the unwillingness to compromise is much larger than greed. Too many of contemporary politicians use the phrase, “I cannot compromise my principles,” as if they have sworn a blood oath to God. Solutions are found in compromise, not in bludgeon the other group to death.

Re: free country. Well said. We are free to choose our path to Happiness . . . along as that path exists within acceptable or tolerable boundaries. We are NOT free to cause injury to other people or property; we are generally not free to threaten other citizens, e.g., exceed the speed limit in residential areas, or distribute deficient products.

Re: Catch-22. Again, we said – 1961 was quite a bit later than 1842; but, as you say, the paradox has been around for millennia.

Re: market. I do not think JPMorganChase is bigger than the marketplace; they are experiencing the consequences of their actions as we speak. I will agree big banks are more buffered from the market than small banks.

“That’s just my opinion, but I could be wrong.”
Cheers,
Cap