Update from the
Heartland
No.615
23.9.13 – 29.9.13
Blog version: http://heartlandupdate.blogspot.com/
To all,
We have many important issues before the
Congress, yet our esteemed political representatives have apparently decided
the fragile economic recovery from the Great Recession was going just a little
too well, and we needed to take a step or two backward. We long past failed to enact a proper
budget, which then meant we needed another extension. I cannot recall how long ago it was that we had a properly
enacted budget for the federal government – a dozen or more years I
surmise. After releasing the
tension on the trigger over Syrian chemical weapons use, the House of
Representatives passed H J Res. 59 – Continuing Appropriations Resolution, 2014,
by a vote of 230-189-0-13(3), with a number of little pearl goodies imbedded for
their buddies and money men, but they only extended the long-in-the-tooth
budget until 15.December.2013. The
Senate picked up the bill only to be entertained by Senator Rafael Edward “Ted”
Cruz of Texas, assisted by Senators Marco Antonio Rubio of Florida and Randal
Howard “Rand” Paul of Kentucky, as he held the floor for 21 hours 19 minutes in
a yet another lame attempt to defund the Patient Protection and Affordable Care Act
(PPACA) [PL 111-148; 124 Stat. 119; 23.March.2010] [432]. The Senate
amended the bill to strip out the PPACA defunding provision and passed H J Res.
59 by a vote of 54-44-0-2(0). The
House then voted on the resolution with an additional provision to delay the
implementation of PPACA by one year [231-192-0-8(4)], which in turns sends it
back to the Senate. Oddly, in all
this worthless political wrangling PPACA will become effective on
1.October.2013, regardless of congressional budgetary action.
There
is no doubt in my little pea-brain that the PPACA has created enormous
confusion, concern, apprehension and a burgeoning politically motivated
disinformation campaign intended to scare the hell out of people. Companies are struggling to understand
the financial consequences to their profits as well as the impact on their
employees. I am less than a year
from retirement. I do not consider
myself an ignorant man, but this whole fiasco has jacked up my worries with the
daunting process of transition from employer-provided, group insurance to
Medicare and TriCare for Life (military).
I feel I must be in pretty good shape thanks in no small part to my
military service. However, this
seems to be a minefield to me, where one misstep could be fatal, given my
current medical state. I know I
should not be whining, as there are others reading these Updates who have no
medical insurance coverage. My
concerns have caused me to consider delaying retirement until all this crap
gets squared away; than again, with the dysfunction of Congress, it may never
be squared away.
Lastly,
Congress is an institution of compromise by design. As with all compromise, we must choose the fights and the
tactics to achieve our objectives.
Frontal assault is necessary and occasionally successful, usually when
overwhelming force is available and other alternatives are less workable. Unfortunately, as has been graphically
demonstrated far too many times, the frontal assault turns into a meat
grinder. Using the
constitutionally required budgetary process or the national debt as a perceived
tool of extortion is a frontal assault. The Tea Party Republicans are turning the crank on the
meat grinder. I understand the
concern of some over the implementation of PPACA, as noted above; however, improvement
would seem to be a more productive endeavor than destruction. I have no idea what it will take to
gain a Congress that understands its purpose and proper processes. I suspect a generation or several. Somehow, we must return to a state of
compromise and abandon the extortion of a scorched earth policy by a small
minority of the opposition party.
This intransigence must change.
The United Nations Security Council
passed Resolution 2118 by a vote of 15-0-0 to demand Syria destroy its
stockpiles of chemical weapons by 30.June.2014. I would like to offer congratulations to Foreign Minister Sergey
Viktorovich Lavrov of Russia and Secretary of State John Forbes Kerry on the
accomplishment of their negotiations; however, I remain skeptical whether Syria
will comply, and I am disappointed in the time frame. The Ghouta event [611,
614] was neither the first nor the
last use of chemical weapons by the al-Assad regime. The other events noted so far:
19.3.13 - Khan al-Assal – noted earlier in Update no. 592
13.4.13 - Sheikh Maqsoud
29.4.13 – Saraqeb
World reaction was only words and saber rattling. Syria saw no consequences.
21.8.13 – Ghouta [611,
614] – this is the attack that got everyone stirred up. Since the Ghouta attack, there are been
more attacks near Damascus:
22.8.13 - Bahhariya
24.9.13 - Jobar
25.8.13 - Ashrafieh Sahnaya
It is important to note Israeli reports of Syrians moving
chemical weapons to Lebanon [581]
much like Saddam Hussein moved Iraqi chemical weapons to Syria before Operation
IRAQI FREEDOM. I want the
diplomacy to work, but more importantly, we need those chemical weapons
destroyed before they fall into the hands of al-Qa’ida or any other of the
myriad terrorist groups intend upon doing harm to the citizens of western
countries. The longer they exist,
the greater the threat to western nations.
News from the economic front:
-- HSBC Holdings PLC reported its preliminary assessment of
the Manufacturing Purchasing Managers Index (PMI) for the People’s Republic of
China (PRC) rose to 51.2 in September from a final reading of 50.1 in August. The rising PMI above 50 indicates the
PRC’s economy is strengthening.
London Inter-Bank Offered Rate (LIBOR)
Debacle [552]:
-- U.S. and U.K. regulators fined interdealer broker ICAP
PLC a total of US$87M for the brokerage firm's contribution to the LIBOR
debacle. Separately, the U.S.
Department of Justice charged three former ICAP brokers with criminal conduct
for their part in the company’s LIBOR activities.
-- So we don’t lose focus . . . the infamous 16, involved,
international banks are:
· Barclays [UK] – US$454M fine [550];
Singapore sanctions [600]
· Bank of America [U.S.]
– Singapore sanctions [600]
· BTMU [Japan] – Singapore sanctions [600]
· Citigroup [U.S.]
– Singapore sanctions [600]
·
Credit Suisse [Switzerland] – Singapore sanctions [600]
· Deutsche Bank [Germany] – US$654M LIBOR profit [578]; set aside €500M (US$641M) for
LIBOR liability [589]; Singapore sanctions [600]
·
Lloyds TSB [UK]
· HSBC [UK] – Singapore
sanctions [600]
· HBOS
[UK]
· JPMorgan Chase [U.S.]
– Singapore sanctions [600]
·
Norinchuckin [Japan]
· Rabobank
[Netherlands]
· RBC
[Canada]
· RBS [UK] – £390M (US$612.6M) in
fines, 21 employees involved [582]; Singapore sanctions [600]
· UBS [Switzerland] – US$1.5B fine, two charged [575]; Singapore sanctions [600]
· West
LB [Germany]
Added to the list by the Monetary Authority of Singapore [600]:
·
ING [Netherlands] – Singapore sanctions [600]
· BNP Paribas [France] – Singapore sanctions [600]
· Crédit Agricole [France] – Singapore sanctions [600]
·
DBS [Singapore] – Singapore sanctions [600]
·
Oversea-Chinese Banking Corporation [Singapore] –
Singapore sanctions [600]
·
Standard Chartered [UK] – Singapore sanctions [600]
·
United Overseas Bank
[Singapore] – Singapore sanctions [600]
·
Australia and New Zealand Banking Group Ltd. [Australia] –
Singapore sanctions [600]
·
Macquarie [Australia] – Singapore sanctions [600]
·
Commerzbank [Germany] – Singapore sanctions [600]
Others involved:
·
ICAP [UK] – fined US$87M + three executives charged [615]
I trust none of us will lose sight of what these banks have
done. Lest we forget!
Comments
and contributions from Update no.614:
Comment to the Blog:
“Your statement, ‘Although the OPCW/WHO team made no attempt
to attribute responsibility, I think there is very little doubt where
responsibility lays’ is irresponsible and unsupported. We know no more than we
did before about the source of the attacks.
“The articles to which you link about the Navy Yard
shootings deal with gun control, not mental illness. Funding to treat mental
illness has been cut again and again, often by the same characters who
attribute mass shootings to that cause rather than deal with the abundance of
firearms. They could be right about disturbed minds causing at least some of
the killing, but I have a question. If they perceive mental illness as the
cause of these tragedies, why do they not increase funding to find and treat at
least the most dangerous of the mentally ill?
“The Marine Corps corporal’s presentation on porn and
suicide to which you linked is 38 minutes long. I cannot spare that much time.
“The link to the story about gay marriage supposedly
conflicting with religious liberty did not work for me. (Windows 7, Chrome 29.0
browser) We have discussed this topic before. My position is simple. If a
person opposes gay marriage, that person ought not to marry someone of the same
gender. If they are clergy, as I am, they already have the choice of whether or
not to perform the marriage ceremony for any couple that requests it, including
same-sex couples. I assume those whose religious convictions oppose same-sex
marriage will continue to refuse to sanctify such marriages. I will pick up
their slack in my local area.
“However, they have no say in anyone else’s marriage, nor
should they. I recommend boycotts for dealing with small businesses that insist
on a bigoted stance. They need to know that customers control their success or
failure. Thus, they are free to remain prejudiced and act on their bias so long
as they are willing to pay the price. I doubt many will cling to their stance
long enough to go bankrupt, but I could be wrong. Either way would benefit
society.”
My response to the
Blog:
Re:
responsible. In most
investigations – accidents, engineering, criminal – there is rarely the smoking
gun. Investigators must examine
the available evidence, connect the dots, and derive the probable cause as best
they can. Given the facts we know,
without the proverbial smoking gun, we must ask who had the capacity,
capability and motive? Is it
possible the rebels acquired a multiple rocket launcher capable of launching
Russian chemical rockets and attacked their supporters? Yes, of course. It is also possible the IRI did it to
instigate the U.S. to attack? Yes,
of course. Is it possible the
United States made the chemical attack to create an excuse for military
action? I suppose that is possible
as well. However, given the
potential perpetrators, who is the most likely? Thus, my opinion.
Re:
gun control. The point I
apparently failed to make in last week’s Update [614] was it is time to move on from the incessant debate about
firearms and focus our energies on the root cause – mental health screening and
treatment. You asked a very
pertinent question. My answer: I
have no freakin’ idea. Perhaps it
is because mental health intervention is not politically popular. Part of the difficulty in health
treatment is broadly a state burden, although Medicare and PPACA are federal
health related laws. With the
struggle to mature PPACA, it will be virtually impossible to get the attention
of Congress. We can debate as much
as we wish.
Re:
Hicks presentation. Yes, it is
long, but he does make a scholarly case for conservative morality, albeit
decidedly biased rather than expansive.
It’s there if you ever get the time or curiosity.
Re:
gay marriage. Your opinion should
be the standard for all morality questions – if you don’t approve, don’t do it,
and leave others to their pursuit of Happiness. Religious beliefs do NOT give anyone the right to impose
their beliefs on others . . . that was my point.
Re:
boycott. The action is a personal
choice. The law has long
recognized that businesses open to the public cannot discriminate based on any
of the social factors. The
conflict in this case stands upon company-paid benefits. It is a misty line worthy of public
debate.
My very best wishes to all. Take care of yourselves and each other.
Cheers,
Cap :-)