Michael Kennedy

China is our enemy.

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UPDATE: Richard Fernandez has has a new column that bears on this issue.

He describes a new article about what was called “The Third Way,” a political movement that was to replace the Democrats after 1988.

The Third Way, the political movement that crested at the end of the 20thcentury and the beginning of the 21st, represented the most recent effort to reimagine the centre-left in the face of massive economic and social changes.

At its apogee, when it dominated the politics of United States, the UK, and Germany, it was thought to provide a stable template for governance well into the new century. Confidence ran high that the business cycle had been tamed and that the forces of globalisation and technology could be managed for the good of average citizens as well as meritocratic elites.

You could almost call it “The Deep State” and it has lost its way.

China, in the meantime, has moved into a lead.

As events proved, the unipolar world did not remain the only game in town. “Russia regressed to autocracy; radical Islamism went to war against the West; China became far more prosperous without becoming a whit more democratic, confuting decades of modernization theories,” Galston wrote. Entrepreneurship declined, middle class incomes stagnated and a revolt against unlimited immigration began. Most of all new decentralized technological possibilities arose within the West. In a word, the power of the elites at the center was challenged as never before. All this came to an unexpected head in 2016.

Now all enemies are near enemies, as the supply chain problem and the “collusion” allegations in every Western country illustrate. We are engulfed in a civil war because in a globalized world that’s the only kind there is. Yet in retrospect Brexit and the election of Donald Trump should not have been the shocks they were. They were only surprises because the media refused to see the growing storm.

There has been quite a bit lately about the China trade deficit. Trump has proposed tariffs on Chinese imports until China treats US products fairly. The recent trade talks with Mexico and Canada are based on the knowledge that much of this NAFTA trade is really with China that send products like steel to Mexico and Canada, which is then incorporated into products imported by the US as north American manufactures.

Now we have evidence that China is more than a trade rival.

But that’s just what U.S. investigators found: The chips had been inserted during the manufacturing process, two officials say, by operatives from a unit of the People’s Liberation Army. In Supermicro, China’s spies appear to have found a perfect conduit for what U.S. officials now describe as the most significant supply chain attack known to have been carried out against American companies.
One official says investigators found that it eventually affected almost 30 companies, including a major bank, government contractors, and the world’s most valuable company, Apple Inc. Apple was an important Supermicro customer and had planned to order more than 30,000 of its servers in two years for a new global network of data centers. Three senior insiders at Apple say that in the summer of 2015, it, too, found malicious chips on Supermicro motherboards.

This was an espionage act that infiltrated US Defense computer systems.

I have been convinced for some time that Russia is a stalking horse form Democrat politicians, like the Clintons, who have been bought and paid for by China.

One government official says China’s goal was long-term access to high-value corporate secrets and sensitive government networks. No consumer data is known to have been stolen.
The ramifications of the attack continue to play out. The Trump administration has made computer and networking hardware, including motherboards, a focus of its latest round of trade sanctions against China, and White House officials have made it clear they think companies will begin shifting their supply chains to other countries as a result. Such a shift might assuage officials who have been warning for years about the security of the supply chain—even though they’ve never disclosed a major reason for their concerns.

I do sometimes wonder at the violent opposition to the Trump China initiatives.

America’s leading business lobbies, which represent every sector of our economy, have declared all out war against President Trump’s trade tariffs.
Manufacturers, corporations of every size and shape, retail businesses, agricultural industries, and consumer groups — 45 associations in all — have joined forces to defeat the president’s plans to impose higher trade taxes on our long-standing trading partners and most loyal allies.
The largest of these organizations, the U.S. Chamber of Commerce, which represents more than 3 million businesses nationwide, is launching an unprecedented campaign against the tariffs.

Is this ignorance or what ?

An interesting analysis of the 2008 housing collapse.

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The 2008 economic collapse gave us ten years of economic malaise and the presidency of Barack Obama.

Why did it happen ? I have been a fan of Nicole Gelinas’ book, “After the Fall”

I wrote a long review of it at Amazon, which is still a favorite of readers.

Now, we have a very interesting new analysis, which blames housing almost exclusively.

Looked at in terms of the popular narrative that there was a “financial crisis,” readers shouldn’t be fooled. There was nothing financial about what happened ten years ago. The “crisis” was made in Washington. Left alone, economies and markets never go haywire when natural market forces are putting out to pasture the weak, only to redirect the previously underutilized resources of the weak to higher uses.

He makes an interesting point, which tracks with my own observations.

a booming housing market of the kind experienced in the ’70s and ’00s is not a sign of economic vitality. Getting into specifics, a home purchase is not an investment. It won’t render the buyer more productive, open foreign markets for same, or morph into capital meant to develop something productivity-enhancing like software. Housing is consumption, that’s it. On the other hand, investment is what powers economic growth, so the very notion that a reorientation of precious capital away from consumptive goods and into production would foster economic crisis is for those who presume to comment on the economy to reveal how little they understand what they’re writing about. The feverish consumption of housing was what was holding the economy down, which means a reversal of what weighed on the economy would logically be good for growth. If so, markets would have discounted housing’s correction positively.

I moved to Orange County in 1972 to begin my medical practice. I already owned two homes in South Pasadena which I had difficulty selling after the move. There was no appreciation of housing. By 1975, when a bear market caused a malpractice insurance crisis for doctors, my 1972 house had tripled in value. The South Pasadena house I finally sold in 1972 for the same ($35,000) price I had paid for it in 1969, was by 1979 for sale for $595,000.

What did happen in both the 1970s and 2000s is that the dollar substantially declined vis-à-vis foreign currencies, commodities, and seemingly everything else. This matters because in both the ’70s and ’00s, gold, oil, wheat, land, rare stamps, art, housing, and just about every other kind of hard asset performed well. Well, of course. When money is losing value, the hard assets least vulnerable to currency devaluation perform best. In a repeat of the ’70s, housing and other commodities proved a safe haven in the ’00s from the U.S. Treasury’s policies in favor of a devalued dollar.

I remember well the rush to buy gold and antiques as hedges against the post 1974 inflation. An elderly woman in Oceanside California got wide publicity for her “crazy” decision to invest her money in buying four Rolls Royces and putting them in storage. She paid about $50,000 each. Five years later they were worth about $200,000 each.

Then came 2008.

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The other 9/11.

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Today we mourn the loss of thousands of lives in a terrorist attack on 9/11, 2001.

There was another 9/11 attack in 2012. It was three months before the 2012 presidential election and the implications of this were obvious.

A recent movie documented some of the lies about that event.

Despite Obama’s and Clinton’s recurring lies to the contrary, the deadly attacks of September 11, 2012, on U.S. diplomatic and intelligence facilities in Benghazi, Libya, had no connection with political protests. In director Michael Bay’s political-action thriller, which Paramount Pictures calls “a true story,” these two outposts get slammed ferociously by growing waves of well-armed jihadists who know exactly what they are doing. As if mocking Obama’s and Clinton’s lies, they do not drop their picket signs and then suddenly grab grenades, rocket launchers, and mortar shells. Instead, these killers skip the placards and head straight for the firepower.

We actually know quite a bit about how that event came to pass.

It began as “Operation Zero Footprint.”

We know Operation Zero Footprint was the covert transfer of weapons from the U.S to the Libyan “rebels”. We also know the operation avoided the concerns with congressional funding, and potential for public scrutiny, through financing by the United Arab Emirates (UAE).

We also know that officials within the government of Qatar served as the intermediaries for the actual transfer of the weapons, thereby removing the footprint of the U.S. intervention.

We know the entire operation was coordinated and controlled by the State Department and CIA. We also know (from the Senate Foreign Relations Benghazi hearings) that “Zero Footprint” was unknown to the 2011 Pentagon and/or DoD commanders who would have been tasked with any military response to the 9/11/12 attack namely AFRICOM General Carter Ham.

However, it would be implausible to think that then Defense Secretary Bob Gates or Joint Chiefs Chair Admiral McMullen were completely unaware of the operation. Even today, despite the numerous hearings and reports, this aspect remains murky.

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Where is health care going ?

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UPDATE: A new analysis of Obamacare’s role in the conversion of American Medicine to an industry with corporate ethics.

The health system is now like a cocaine junkie hooked on federal payments.

This addiction explains why the insurance companies are lobbying furiously for these funds alongside their new found friends at left-wing interest groups like Center for American Progress. The irony of this alliance is that the left-wing allies the insurers have united with hate insurance companies and want to abolish them. The insurance lobby is selling rope to their hangman.

Hospital groups, the American Medical Association, the AARP and groups like them are on board too. They are joined by the Catholic Bishops and groups like the American Heart Association and the American Lung Association. (If you are donating money to any of these groups you might want to think again.) This multi-billion dollar health industrial complex has only one solution to every Obamacare crack-up: more regulation and more tax dollars.I practiced during what is more and more seen as a golden age of medical care. Certainly the poor had problems with access. Still, most got adequate care, either through Medicaid after 1965, or from public hospitals, many of which were wrecked by Medicaid rules and by the flood of illegal aliens the past 40 years.

Obamacare destroyed, probably on purpose, the healthcare system we had. It had been referred to by Teddy Kennedy, the saint of the Democrats Party as “a cottage industry.” As far as primary care was concerned, he was correct. What we have now is industrial type medicine for primary care and many primary care doctors are quitting.

So why is there waning interest in being a physician? A recent report from the Association of American Medical Colleges projected a shortage of 42,600 to 121,300 physicians by 2030, up from its 2017 projected shortage of 40,800 to 104,900 doctors.

There appear to be two main factors driving this anticipated doctor drought: First, young people are becoming less interested in pursuing medical careers with the rise of STEM jobs, a shift that Craig Fowler, regional VP of The Medicus Firm, a national physician search and consulting agency based in Dallas, has noticed.

“There are definitely fewer people going to [med school] and more going into careers like engineering,” Fowler told NBC News.

There are several reasons, I think. I have talked to younger physicians and have yet to find one that enjoys his or her practice if they are in primary care. That applies to both men and women. Women are now 60% of medical students. This has contributed to the doctor shortage as they tend to work fewer hours than male physicians.

A long analysis of physician incomes shows that 22% of females report part time work vs 12% of males.

Physicians are the most highly regulated profession on earth. The Electronic Health Record has been made mandatory for those treating Medicare patients and it has contributed a lot to the dissatisfaction of physicians.

THE MOUNTING BUREAUCRACY
This “bottleneck effect” doesn’t usually sour grads on staying the course, Fowler finds, but he does see plenty of doctors in the later stages of their careers hang up their stethoscopes earlier than expected. Some cite electronic health records (EHRs) as part of the reason — especially old school doctors who don’t pride themselves on their computer skills. New research by Stanford Medicine, conducted by The Harris Poll, found that 59 percent think EHRs “need a complete overhaul;” while 40 percent see “more challenges with EHRs than benefits.”

If I remember my arithmetic, that adds up to 99% unhappy with the EHR.

Most primary care physicians I know are on salary, employed by a hospital or a corporate firm. They are require to crank out the office visits and are held to a tight schedule that does not allow much personal relationships with patients. The job satisfaction that was once a big part of a medical career is gone.

Is China involved in the Russia-Trump hoax ?

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We have been subjected to a year and a half, almost two years, of constant hysteria about Russia and whether they helped Trump win the 2016 election. There has been no evidence of any collusion and the Mueller “special counsel” investigation seems to be winding down.

Rush Limbaugh has some interesting ideas about what is going on.

So the only possible way they can get rid of Trump here is via politics, and that’s to drive his approval numbers down so that Republicans in Congress have no reason to support him. If Republicans in Congress — the House and Senate — could be forced to abandon their support for Trump, as happened to Nixon, then he would have to go. I don’t know if Trump would play ball even in that scenario like Nixon did. I think Trump would dare them to impeach him and try to remove him. I don’t think Trump’s gonna play ball the way the establishment thinks.

Democrat voters are highly motivated to vote in the November election, at least in part, to impeach Trump. Why ?

There seems to be no letup in the frenzy to demonize Trump.

In 21st-century America, it is difficult to conjure the possibility of the federal government taking an eraser to the map and scrubbing away an entire ethnic group. I had arrived in Columbus at the suggestion of a Cleveland-based lawyer named David Leopold, a former president of the American Immigration Lawyers Association. Leopold has kept in touch with an old client who attends the Mauritanian mosque. When he mentioned the community’s plight to me, he called it “ethnic cleansing”—which initially sounded like wild hyperbole.

“Mosque.” Hmmm.

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