America’s Principal-Agent Problem

Instapundit frequently links to another story of government incompetence with the comment “We have the worst ruling class in our history.”

There are so many examples, it is hard to list them but I will try with a few.

First, let’s have a definition.

The principalagent problem, in political science and economics, (also known as agency dilemma or the agency problem) occurs when one person or entity (the “agent”) is able to make decisions on behalf of, or that impact, another person or entity: the “principal”.[1] This dilemma exists in circumstances where agents are motivated to act in their own best interests, which are contrary to those of their principals, and is an example of moral hazard.

The Founders were well aware of this problem and tried to protect the citizens with certain provisions of the Constitution.

No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.

This provision was violated by Barack Obama who spent billions to subsidize insurance companies to support his “Affordable Care Act” which was not successful.

Of course, the Amendments were intended to protect the rights of the people but the one that has been ignored for 100 years is the Tenth.

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

The Civil War largely ended Federalism.

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It looks like the “hero” security guard in the Vegas shooting is illegal.

UPDATE: The hero guard has surfaced and will be on the Ellen Degeneres show.

He went for the money, which was sensible of him, but does anyone think he will be asked about his immigration status ?

The “hero” security guard in the Las Vegas shooting has not only disappeared, but had a false Social Security number.

I guess that’s why he bolted before the press conference.

He also may be the reason for the shifting stories about the shooting.

There are photos of him wearing a badge and others without it.

The security guard was supposed to be interviewed by Fox News’ Sean Hannity, but the host tweeted on Thursday: ‘He cancelled.’
Campos’ disappearance came just hours after MGM Resorts International, which owns the Mandalay Bay, disputed the official timeline of the deadliest mass shooting in modern US history, rejecting any suggestion that hotel staff delayed calling 911 for six minutes after Paddock opened fire.

Maybe he did not have a gun because he could not pass a background check. Then there is the matter of the six minutes after he was shot and the massacre began.

The latest chronology raised a series of questions about whether officers were given information quickly enough to possibly have a chance to take out the gunman before he could carry out the bloodshed.
But according to resort officials, it was no more than 40 seconds between the time Campos used his walkie talkie to call for help and Paddock opening fire on the crowd from two windows in his suite.
Earlier in the investigation, police had said that Paddock shot through his door and wounded Campos after the guard distracted him from firing on the crowd out the windows.
Campos’ union president said the latest timeline does not dispute the assertion that the guard is ‘still a hero, saving his coworker, possibly stopping additional shots,’ reported Stephanie Wash.

Two timelines. Mysteries about the motive, whether there was a second shooter, who used his card key when he was gone ?

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What’s going on with the DNC and the Pakistanis ?

The arrest of Imran Awan sets off a potential firestorm.

Who is this guy ?

For years, Imran Awan had access to the secret data and correspondence of many House committees, including foreign affairs. What did he do with it? As I said, that’s the worst case scenario (I guess).

He refers to a possible link to the Pakistani ISI. The ISI has a very controversial history. Some of it concerns the Afghanistan Taliban.

In documents leaked in April 2011 on the Wikileaks website, US authorities described the ISI as a “terrorist” organisation on a par with al-Qaeda and the Taliban.
In the same month the US military’s top officer, Adm Mike Mullen, also accused the ISI of having links with the Taliban.
He said it had a “long-standing relationship” with a militant group run by Afghan insurgent Jalaluddin Haqqani, which targets US troops in Afghanistan.

What is the relationship between Awan and the Democrats in Congress ? Why did Debbie Wasserman Schultz keep paying his salary until he was arrested trying to flee the country ?

Imran Awan was arrested at Dulles Airport on a bank fraud charge, and was found to have smashed hard drives in his possession.

“It’s about everything that the Democrats and the media spent months… trying to prove [with] the Russia investigation,” he said.

Steyn said Awan’s story involved a powerful political figure trying to interfere in a federal investigation.

“We have actual criminal elements,” he said. “Everything they’ve been looking for is… staring them in the face with this mysterious guy.”

Why did Schultz threaten the capitol police chief with “consequences” if her hard drive possessed by Awan was not returned to her ?

DWS: It’s a simple yes or no answer. If a member loses equipment and it is found by your staff and identified as that member’s equipment and the member is not associated with any case, it is supposed to be returned. Yes or no.

Chief Verderosa: It depends on the circumstances.

DWS: I don’t understand how that is possible. Members’ equipment is members’ equipment. My understanding is the the Capitol Police is not able to confiscate members’ equipment when the member is not under investigation. It is their equipment and it is supposed to be returned.

Chief Verderosa: I think there are extenuating circumstances in this case, and working through my counsel and the necessary personnel, if that in fact is the case, and with the permission of through the investigation, then we’ll return the equipment. But until that happens we can’t return the equipment.

DWS: I think you’re violating the rules when you conduct your business that way and you should expect that there will be consequences.

What “consequences?”

Here are some thoughts about this:

1. Why did Debbie Wasserman Schultz keep this man in her employ right up until he was arrested Tuesday night when he has been under suspicion for months. Does he have something on her or other people?

2. Why did Nancy Pelosi lie when she said she never heard of Awan? Email revealed by Wikileaks says Awan had access to Pelosi’s iPad. (Wiklileaks has never been shown to be inaccurate.)

3. What is on the smashed hard drives Awan is trying to retrieve from the FBI? (Oh, those Democrats and their hard drives.)

4. Why is Awan suddenly being legally represented at the highest level by Clinton ultra-loyalist Chris Gowan — a fact-checker for Bill Clinton’s memoir of all things? (They are already using the same right-wing conspiracy baloney they used in the Lewinski case.) Does this make sense if Awan’s just a low-life fraudster? Why not let him dangle?

5. Just what is the relationship, if any, between the Awan case and the unsolved Seth Rich murder? Is it entirely an accident that Debbie Wasserman Schultz’s brother Steven is accused of blocking the investigation? Denials from Debbie aren’t worth much anymore.

6. Where did the Wikileaks come from anyway? Was it really Russia?

And more questions.

Key among the findings of the independent forensic investigations is the conclusion that the DNC data was copied onto a storage device at a speed that far exceeds an Internet capability for a remote hack. Of equal importance, the forensics show that the copying and doctoring were performed on the East coast of the U.S. Thus far, mainstream media have ignored the findings of these independent studies [see here and here].

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Internal Secession ?

The Trump Derangement Syndrome shows no sign of stopping. The alleged meeting between Russians and Donald Trump Jr is reaching a new level of fever.

The anti-Trump mainstream media is buzzing with news that Rinat Akhmetshin, a Russian American lobbyist and veteran of the Soviet military, attended the June 2016 meeting between Donald Trump Jr. and Russian lawyer Natalia Veselnitskaya.

Rosalind Helderman and Tom Hamburger of the Washington Post insist that Akhmetshin’s presence “adds to the potential seriousness of the Trump Tower gathering that is emerging this week as the clearest evidence so far of interactions between Trump campaign officials and Russian interests.” I think they mean the only evidence.

But now does the attendance of this lobbyist add to the “potential seriousness” of the “gathering”? If it was inappropriate for Trump Jr. to meet with one Russian lobbyist with probable Kremlin connections, the attendance of a second doesn’t make the meeting more inappropriate.

The hysteria shows no sign of abating. What comes next ?

“Resist” marches all over the country bring out thousands of leftists and feminists.

Tens of thousands of LGBTQ folk and their allies marched through Hollywood and West Hollywood on Sunday for the Resist March, a protest which this year replaced the colorful and over-the-top celebratory atmosphere of a Pride parade.

The event was billed as non-partisan, but unmistakeable was the heavy presence of marchers bearing anti-Trump signs, speakers decrying the administration’s immigration, healthcare and civil rights policies, and Democrats calling for a burst of activism to channel into the 2018 elections.

Richard Fernandez has some thoughts on where this might go.

Internal secession.

Our trust hierarchies have collapsed. As with Soviet Russia, the “official” media sources are now distrusted as purveyors “fake news”. To fill the gap a peer-to-peer grapevine, similar to the “friends and family”, a samizdat is emerging to pick up the slack. Sonya Mann at Inc uses a startup to illustrate the growing division of society into trust groups. “Pax Dickinson wants to fund the revolution. Not a blood-in-the-streets revolution, but one where hardcore right-wingers can economically secede from the parts of society they vehemently dislike. “We need parallel everything. I do not want to ever have to spend a single dollar at a non-movement business.”

That’s the right, the alt-right if you prefer.

The left has already shown their willingness to boycott any business that does not follow their script.

Ask Brenden Eich.

Brendan Eich recently stepped down as CEO of Mozilla, developer of the Firefox Web browser. It may be more accurate to say he was forced out in the wake of a rising boycott against him. The backlash against Eich is related to his position on gay rights, but many feel that the campaign against him is its own form of discrimination and intolerance.

His crime was to quietly donate $1000 to the Proposition Eight ballet initiative, which resulted in over 7 million yes votes and a 60% margin of approval. The proposition was ruled unconstitutional by a federal judge who promptly married his gay lover.

California’s AG declined to appeal his ruling. That’s a pretty effective boycott.

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What to do about North Korea

The North Koreans launched a new two stage missile, which signals more escalation of their part.

The two-stage missile launched Tuesday by North Korea will be classified by US intelligence as a brand-new missile that has not been seen before, US officials told CNN.

The first stage of the missile is believed to be a KN-17 liquid fueled missile, which is well-known to US intelligence and has been previously launched by North Korea.

Ahead of Tuesday’s missile test, US satellites had seen evidence the KN-17 missile was being prepared for launch.
But at some point prior to launch, the North Koreans attached a second stage atop that missile.
The focus now is on the capability of that second stage, and how it technically contributed to making Pyongyang’s latest test its first ever intercontinental ballistic missile (ICBM) launch.

The next step will be the development of a solid fuel missile which could be launched with little warning.

NK launch

The trajectory was high and short but the second stage could be programmed to go much longer range.

It is apparent that the US policy going back to Bill Clinton and his “Deal” to stop the Norks nuclear program, has been a complete failure, like so many of Clinton’s deals.

On Oct. 18, 1994, Clinton approved a plan to arrange more than $4 billion in energy aid to North Korea over the course of a decade, in return for a commitment from the country’s Communist leadership to freeze and gradually dismantle its nuclear weapons development program, according to The New York Times.

The “complex” deal was to de-escalate the situation on the Korean peninsula, where the two Korean nations never negotiated a peace treaty after the Korean War ended in armistice in 1953.

“This agreement is good for the United States, good for our allies, and good for the safety of the entire world,” said Clinton in 1994. “It’s a crucial step toward drawing North Korea into the global community.”

The drawing-in never happened.

I can only imagine what Hillary Clinton would do if she were President. The mind boggles at the thought.

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