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  • Archive for the 'Big Government' Category

    An Interesting and Timely IPO

    Posted by David Foster on 22nd June 2018 (All posts by )

    I’ve been aware for some time of a company called Avalara, which is in the cloud-based tax-compliance business.  In the US, Avalara keeps track of the vast array of sales tax rates, which are imposed not only at the state level but often also at municipal and county levels.  Avalara integrates with a number of electronic commerce platforms, which can pass destination address info to the system and thereby obtain the appropriate tax rate in real time and include it in the end customer’s charges at checkout.

    The company did its Initial Public Offering on June 13, and AVLR quickly jumped from its IPO price of $24 to about $45 , putting its market capitalization at about $2.9 billion.  Yesterday, the Supreme Court issued a decision that has great implications for Avalara’s business…as well as for the businesses of hundreds of thousands if not millions of on-line retailers and the consumers who buy from them–and as of this moment AVLR is trading at $52.16, with a market cap of $3.32 billion.

    What the Court apparently ruled is that states can impose sales taxes on on-line transactions (and, I would presume, classical mail-order transactions as well) even when the seller does not have a physical “nexus” (such as a warehouse, and office or a factory) in that state. (And you can be sure that most of them will take advantage of this opportunity.)   This is really “just” a cost problem for very large on-line merchants such as Amazon, but the compliance issues for smaller businesses are going to be considerable.  Avalara seems well-positioned to help with this problem, but the ruling is still going to be far more burdensome to the smaller on-line merchants than to the large ones.

    See discussion of the sales tax issue at the Instapundit post.

    Regarding Avlara, I have not analyzed this company as a potential investment and am not giving an opinion on it for that purpose either pro or con, certainly not giving investment advice here.

    Posted in Big Government, Business, Internet, Taxes, Tech | 27 Comments »

    Draining the Swamp: Progressive Politics – the Road to Crony Capitalist Perdition

    Posted by Kevin Villani on 17th June 2018 (All posts by )

    From A Libertarian Republic to Majoritarian-Totalitarian Democracy: a Summary

    The 2016 American Presidential Election

    Trust in government fell by almost 80% from the end of the Eisenhower Administration to the end of the Obama Administration. Then Americans endured one of the most divisive and longest two year election campaigns leading up to the 2016 election. Former Democrat turned Republican Donald Trump defeated a field of 17 traditional center-right Republicans to run against traditionally center–left Democratic candidate Hillary Clinton who turned left to defeat her socialist competitor Bernie Sanders in the primary. Sanders correctly argued that the U.S. political system is rigged – more than he knew at the time – but responded by promising his generally young supporters socialism without totalitarianism. The public has endured another two years of divisiveness as the losing party tries to undermine and some would impeach the winner.

    Republican nominee and arguably crony capitalist businessman Donald Trump, the son of a crony capitalist housing developer, ran on the paradoxical promise to “drain the swamp.” The faux democratic election of crony capitalist supremo Vladimir Putin in 2011 drew the public reprobation of then U.S. Secretary of State Hillary Clinton, the subsequent Democratic Party nominee. Putin responded with a campaign of not so fake news not to elect Trump – they had the same polls as everybody else – but to expose Clinton as a crony capitalist who also engaged in election-rigging. He hit pay dirt. The faux Russian collusion scandal has since been used to undermine the legitimacy of the Trump Administration.

    On the issue of trade there was no difference between the three main candidates – all opposed the new TTP trade agreement. The U.S. trade deficit has been about $500 billion a year during this century, consumption financed mostly with additional debt. Candidate Clinton, who supported China’s entry into the WTO during the Clinton Administration agreed she would if elected renegotiate NAFTA, the trade bill passed at her husband’s initiative. On the related issue of immigration, candidate Clinton voted for the bipartisan Secure Fence Act of 2006, as did then Senators Obama and Schumer.

    The Obama Administration had doubled the federal debt outstanding to over $20 trillion – and the unfunded liability is approximately ten times that. President Obama’s Chairman of the Joint Chiefs of Staff publically warned as early as 2010 that the debt was a threat to national security. Candidate Clinton promised she wouldn’t add a penny to the national debt, but her platform had an imbedded $10 trillion increase, less than Sanders to be sure. Candidate Trump promised to eliminate the debt in eight years by increasing economic growth. Clinton’s was a political lie, Trump’s an outlandish campaign promise since going unfulfilled: his appropriations bill contained a $200 billion increase in spending, a Democratic victory for domestic spending in return for Republican defense spending.

    Candidate Trump ran against the “deep state” wars and military interventions that candidate Clinton had voted for. But as President, Trump embraced it with overwhelming Democratic support to punish Russia.

    Progressivism’s Administrative State

    The Democrats’ agenda has arguably fared much better under Trump than Republicans did under Obama. Given these similarities in proposed and actual policies, the subsequent animosity might appear puzzling. But the biggest difference among the candidates relates to the relative roles of the public and private sectors. The U.S. is now governed by an unaccountable patria administrative state: judicial and legislative subsumed in the executive branch and sometimes independent even of that – judge, jury and executioner. The new religion is “science” requiring a faux consensus and leadership by the “experts” as proposed by John Kenneth Galbraith in the New Industrial State (1967) over a half century ago.

    Washington, D.C. is a place where self interested deals are made in hotel lobbies and K street offices, but the entire federal bureaucracy sits on a former swamp. Most federal politicians are political swamp people having worked their way up in local and state politics by making political deals for budget and/or tax subsidies and/or regulatory discretion – legal extortion. Candidate Clinton is a self described progressive and candidate Sanders a socialist, the former supports state control of business, the later favors more direct state ownership.

    The Berlin Wall fell in 1989, followed by the Soviet Union two years later. In 1995 U.S. President Bill Clinton declared “The era of big government is over.” Britain’s Prime Minister Tony Blair, publishing in a Fabian pamphlet in 1998 argued: “Liberals (classical, i.e., American conservatives) asserted the primacy of individual liberty in the market economy; social democrats promoted social justice with the state as its main agent. There is no necessary conflict between the two, accepting as we now do that state power is one means to achieve our goals, but not the only one and emphatically not an end in itself.” But “the values which have guided progressive politics for more than a century – democracy, liberty, justice, mutual obligation and internationalism” have lead in practice to “state control, high taxation and producer interests (crony capitalism).” By the end of the century a few years after Blair spoke, the market had reached The Commanding Heights of the economy. But a decade later the Obama Administration had put the state back on top, seeking to control not just health care but finance and energy.

    Progressivism – like fascism and communism – started with the best of intentions, in opposition to crony capitalism. Social welfare programs were implemented to spread the wealth and provide a safety net, but during the progressive Obama Administration economic growth per capita stagnated. Candidate Trump believed that rolling back the administrative state regulations and the tax on savings and investment as suggested by Blair would restore real private economic growth, the key to managing the public deficit. His Democratic opponents both favored a vast expansion of the administrative state and increases in the tax on capital.

    Progressive Internationalism and the New World Order

    Progressives supported freer trade even if not reciprocal in the post WW II era because America could still enjoy a balance of trade surplus that could be used to fund investments abroad and a “new world order” of American dominance in a bi-polar world with the Soviet Union and its satellites. The European Union evolved as a mechanism to end European – especially German – “nationalism” in favor of this plan. Two events undercut this agenda of international control through capital flows: the 1960s wars on poverty and Vietnam turned American surpluses into deficits, and the common European currency created a German economic hegemony over Europe. The U.S. today is to China what Greece, Italy, Spain, Portugal and Ireland are to Germany, and that’s not a compliment. Both China and Germany – whose exports equal China’s with only 6% of the population – are mercantilist countries pursuing low wages and consumption domestically so that future generations can live off the debt that finances their over-consuming customers.

    Germany understands perhaps better than any country the problem of using foreign debt to finance current consumption as it did to feed a starving population during the interwar years. The excessive debt undermined the fledgling Weimar Republic, giving rise to Hitler. Trumps trade policy appears incoherent, as is much of the criticism. Progressives still argue for globalism and internationalism while conservatives and libertarians are hung up on Ricardian theory of comparative advantage in international trade and the accounting identity of the trade and capital balance.

    The problem isn’t global trade per se, but progressive policies that repress national saving and domestic labor and capital productivity while growing the administrative state. National boundaries still matter. In the EU the single currency zone has destabilized previously relatively stable prosperous countries, threatening political and economic collapse. The relationship between the U.S. and China reflects a similar dynamic: the willingness to accept American debt has kept the dollar from falling and trade adjusting. China holds over trillion dollars of debt backed by taxpayers, and was the biggest foreign funder of Fannie Mae and Freddie Mac during the sub-prime lending bubble. Progressives argued that we would grow out of this debt, but simultaneously and inconsistently deny that the failure to grow during the Obama Administration reflected economic repression but “secular stagnation” – that capitalist innovation has run its course. If so, we are doomed when countries attempt to collect.

    Thus far the main part of the Trump agenda, the tax reform and regulatory roll back – against universal Democratic opposition and condemnation – appears to be working. Economic growth per capita has picked up, unemployment is the lowest since the turn of the century, and business investment net of depreciation is rising from historic lows. But it is way too early to declare success. China entered the WTO without meeting the minimum requirements for intellectual property protection or reciprocity, a Clinton Administration oversight. Fixing the former should be uncontroversial. Reciprocity insures that the most competitive – not the most subsidized – win. Subsidies may benefit American consumers temporarily, but the dislocations are costly and overconsumption dangerous, the debt leading to contemporary “gunboat diplomacy” to settle debts. A reciprocal tariff is a consumption tax, not irrational to consider under those circumstances.

    Progressive efforts to Impeach President Trump: the Totalitarian Administrative State Strikes Back

    Yet since the election, some progressive Democrats have been pushing for impeachment on grounds of Russian collusion and obstruction of justice, although no evidence has yet been produced of that after two years of investigation.

    One thoughtful progressive commentator dismisses these grounds, arguing that the real grounds for impeachment are the “threats Trumpism poses to democracy and rule of law.” If true, those would indeed be grounds for impeachment but he doesn’t define Trumpism or provide evidence. The many articles in the progressive media can be summarized thus: Trump is tweeting against the administrative state agents that are out to get him.

    Libertarians and Republican conservatives have argued that progressives have been undermining liberty and the rule of law for over a century to create the administrative state, obfuscating their agenda by manipulating words to mean the opposite of their historical meaning. Trump’s Court appointments are intended to reverse that trend. Statism is usually associated with one-party faux democracy to prevent state power from turning against the entrenched interests with a change of government. Trump ran against the progressive new world order, arguing to “put America first.” The Democrats didn’t think Trump had any chance to win. This seems the more compelling reason for their impeachment efforts. The anti-Trump organized hysteria bears a marked resemblance to the largely Soros funded Republican and Democratic efforts to ignite the democratic color revolutions in the former Soviet states described by F.William Engdahl in Full Spectrum Dominance: Totalitarian Democracy in the New World Order (2009).

    This isn’t about Trump tweets. It’s a battle for the commanding heights.
    Read the rest of this entry »

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    Posted in Big Government, Capitalism, Civil Liberties, Civil Society, Conservatism, Crony Capitalism, Economics & Finance, History, Leftism, Libertarianism, Political Philosophy, Politics, Public Finance, Taxes, Tradeoffs, USA | 9 Comments »

    An American Version of the Habsburg Empire?

    Posted by David Foster on 13th June 2018 (All posts by )

    Based on a recommendation from Sgt Mom, I recently read A Sailor of Austria, a novel about an Austrian submarine commander in WWI.  I thought it was excellent, but this post isn’t a book review.

    Both this novel and the memoirs of a real-life Austrian sub commander, Captain Georg von Trapp, portray the intergroup tensions that plagued the multinational/multiethnic/multilanguage/multireligious entity that was the Austro-Hungarian empire.  These tensions only got worse, of course, as the war situation turned darker.  For example, Captain von Trapp, while having some shipyard work done in his submarine, observed that “the work is actually delayed. It is quite similar to Penelope’s tapestry: mysterious forces impede the construction. The crew is suspicious.”  He thought it likely that Czechs working in the shipyard were deliberately slowing the work, noting that  “At the American declaration of war, they supposedly really celebrated, but you can’t pin anything on them.”

    Reading A Sailor of Austria reminded me of my 2011 post Government Overreach and Ethnic Conflict, in which I quoted AJP Taylor:

    The Austrian state suffered from its strength: it had never had its range of activity cut down during a successful period of laissez-faire, and therefore the openings for a national conflict were far greater. There were no private schools or hospitals, no independent universities; and the state, in its infinite paternalism, performed a variety of services from veterinary surgery to the inspecting of buildings. The appointment of every school teacher, of every railway porter, of every hospital doctor, of every tax-collector, was a signal for national struggle. Besides, private industry looked to the state for aid from tariffs and subsidies; these, in every country, produce ‘log-rolling,’ and nationalism offered an added lever with which to shift the logs. German industries demanded state aid to preserve their privileged position; Czech industries demanded state aid to redress the inequalities of the past. The first generation of national rivals had been the products of universities and fought for appointment at the highest professional level: their disputes concerned only a few hundred state jobs. The generation which followed them was the result of universal elementary education and fought for the trivial state employment which existed in every village; hence the more popular national conflicts at the turn of the century.

    The present-day US doesn’t have the level of government dominance that existed in the Austro-Hungarian empire, certainly, but the degree to which many nominally-private activities are now government-funded (universities, healthcare)–combined with the extreme politicization of everything from coffee to football–is helping to drive those same behaviors of intergroup squabbling.

    It does seem that the US is in danger of ceasing to be a nation-state at all and transitioning into a  multinational, multiethnic, multilingual, multireligious, gender-divided empire comprised of groups that are primarily interested in gaining power over their internal rivals.

    Discuss

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    Posted in Big Government, Biography, Book Notes, Culture, Europe, History, Society, USA | 18 Comments »

    Nicely Put

    Posted by David Foster on 1st June 2018 (All posts by )

    Dictators don’t getting into power by saying “Hey give ME power.”  Dictators get into power by saying “Let me give you power over your neighbor.”

    Defending Civil Society

    Not 100% true, but a useful thought.

    Posted in Big Government, Civil Liberties, Civil Society | 9 Comments »

    Memorial Day and the Deprecation of Freedom

    Posted by David Foster on 28th May 2018 (All posts by )

    On Memorial Day, we pause to reflect on those who died to protect our freedom.  But today I have to wonder:  In this year 2018, what proportion of Americans seriously value freedom?

    Recently I encountered a meme on Facebook that went something like this:

    Keep telling yourself that America is the land of the free while the rest of the developed world enjoys universal healthcare, free college, paid maternity leave, and a ton more vacation time than any of us get.

    Nothing there about free speech, freedom of religion, or even freedom to pursue one’s chosen career.  How many people think this way?  I’m afraid it’s a nontrivial number and a growing one.

    I don’t think I even need to post a lot of links in order to demonstrate that individual freedom is being devalued by many in America today:  the evidence is too well known.  There are surveys showing that large numbers of college students view ‘avoiding offense’ as more important than free speech.  There are on-line mob attacks, and sometimes physical-world mob attacks, against those with dissident views.  College students who do hold such dissident views often feel they must keep those views to themselves, and this is increasingly true in the business world as well.  Americans have become tolerant of bullying bureaucrats and of virtually unlimited discretion on the part of prosecutors.  There is surprisingly little concern about the shadow thrown on free speech by the murderous threats (and sometimes actions) of radical Islamists:  draw a cartoon that offends them, and you may have to go into hiding.

    So my question for today is:  What factors are driving the devaluation of freedom in America today, and what can be done about it?

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    Posted in Big Government, Civil Liberties, Crime and Punishment, Human Behavior, Leftism, USA | 27 Comments »

    The Toughest Job in America?

    Posted by David Foster on 24th May 2018 (All posts by )

    Admiral William McRaven, who is retiring as Chancellor of the University of Texas system, asserted that  “Leading a university or health institution is ‘the toughest job in the nation.'”

    McRaven was for many years a SEAL leader, with his career culminating in planning and overseeing the operation that killed Osama bin Laden.

    I’d suggest that, if leading a university (and for this post, I’ll be focusing on that part of the admiral’s statement rather than the healthcare part) is harder that leading major special-forces operations against determined enemies…then something is very wrong.

    Mind you, I’m not saying he’s incorrect.  Indeed, I’d go further: except for certain niche institutions, the job of university president or chancellor may now not just be difficult, but impossible.  Impossible, that is, if you look at success in terms of generating reasonable positive educational results within a reasonably positive culture, not just keeping one’s job.

    And this situation is largely the result of the poor performance of several generations of previous university administrators. There has been overselling of what universities are offering..increasingly including graduate studies…as the only key to success in American societies.  There has been encouragement of students to sign up for very large loans, without the kind of disclosure of risks that would be required for any other kind of large investment; coupled with the first point, this has resulted in many people being on campus who shouldn’t be there at all and/or aren’t taking their education very seriously. There has been in many cases a lack of attention to the mission of teaching.  There has been a lack of respect for civil liberties of both students and professors, a tolerance of intimidation tactics by students, professors, and outside parties, and an encouragement of organizations and ‘fields of study’ that are by their very nature hostile to the notion of an academic community.  And there has been little pushback against intrusive regulation from government, as long as funding is at stake.

    True, not all university administrators have conducted themselves in the manner described above, but enough have that American higher education as a whole has become increasingly toxic.  And when a culture has become sufficiently toxic, it is very difficult for even the best leader to implement meaningful change.

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    Posted in Academia, Big Government, Civil Liberties, Organizational Analysis, Texas, War and Peace | 29 Comments »

    “. . . the significant, blood-sport destruction of my business . . .”

    Posted by Jonathan on 22nd May 2018 (All posts by )

    Leon Cooperman: Two changes that could help fix what is wrong with our regulatory process:

    It seems logically manifest to me that something transpired between September 2016 and March 2017 that led to the Commission’s dramatically downwardly-revised settlement offer. Despite numerous attempts to ferret it out, I have been unsuccessful in getting a response, either from the current chairman or from his predecessor who oversaw my case (and who told me, when I saw her at a conference after she left office, that even innocent people often find settling with the government preferable to hazarding the system). As an American taxpayer, I believe that I deserve an answer to my question. And as an analytical person, it is hard for me to reconcile the significant, blood-sport destruction of my business that this matter has occasioned without understanding the dynamics behind the resolution from the Commission’s perspective.

    “Something transpired between September 2016 and March 2017” that led the SEC to dial back the brutality of its regulatory attack on Mr. Cooperman’s firm. I wonder what that something could have been?

    Elections have consequences. The Obama administration was so openly hostile to business, and so casually willing to use its power to reward allies and punish critics, that prominent business people were reluctant to criticize the Administration publicly, especially in the early days before the 2010 elections. If I recall, Mr. Cooperman was more courageous than most of his contemporaries in expressing public concern about Mr. Obama’s policies.

    As the man said, this is how you get more Trump.

    Posted in Big Government, Business, Civil Liberties, Civil Society, Crony Capitalism, Law, Obama, Politics, Trump | 1 Comment »

    THE DEEP STATE CIVIL WAR AND THE COUP D’ETAT AGAINST PRESIDENT TRUMP

    Posted by Trent Telenko on 20th May 2018 (All posts by )

    In case you all had not noticed, a -LOT- of what is going on in the news between the Deep State and Pres. Trump here in the USA is a intra-Deep State factional Civil War over Iran.

    In short — It’s Iran, STUPID!

    This can be shown via the fact that the Obama “Iran Nuclear Deal” faction used the full powers of the FISA counter-intelligence to ram the Iran deal through Congress in 2015. (See the text immediately below and the Tablet on-line magazine link to their April 2017 article on the subject)

    In a December 29, 2015 article, The Wall Street Journal described how the Obama administration had conducted surveillance on Israeli officials to understand how Prime Minister Benjamin Netanyahu and other Israeli officials, like Ambassador Ron Dermer, intended to fight the Iran Deal. The Journal reported that the targeting “also swept up the contents of some of their private conversations with U.S. lawmakers and American-Jewish groups.”

    .

    and

    .

    The reason the prior abuse of the foreign-intelligence surveillance apparatus is clear only now is because the Russia campaign has illuminated it. As The New York Times reported last month, the administration distributed the intelligence gathered on the Trump transition team widely throughout government agencies, after it had changed the rules on distributing intercepted communications. The point of distributing the information so widely was to “preserve it,” the administration and its friends in the press explained—“preserve” being a euphemism for “leak.” The Obama team seems not to have understood that in proliferating that material they have exposed themselves to risk, by creating a potential criminal trail that may expose systematic abuse of foreign-intelligence collection.

    Now you know why General Flynn was under counter-intelligence surveillance by the Asst. AG Sally Yates at the DoJ and Andrew McCabe at FBI Counter-Intelligence in 2015.

    The Obama Administration was afraid ex-Defense Intelligence Agency head Gen Flynn would be called to testify before Congress about how CIA Chief Brennen and DNI Clapper were cooking the intelligence books on Iran and ISIS.

    It turned out the illegal FISA surveillance by the Obama Administration got enough dirt on Congressional leaders to prevent that from happening.

    The Deep State’s Iran Deal factional plans might have worked if Trump had lost…but he didn’t.

    Everything regards the spying on the Trump campaign and attempted coup d’etat by special council/lawfare/impeachment against President Trump is about hiding the facts of that Iran Nuclear Deal from the American people and law enforcement.

    But while the Obama/Iran Nuclear Deal faction was the largest and strongest Deep State faction…it wasn’t the only one.

    Pres. Trump has the anti-Iran Deep State faction on his side as well — which is mainly uniformed US military intelligence, see Gen Flynn and Adm Mike Rogers formally head at NSA — with a foreign intervention in the form of Saudi Arabia, the Israeli Mossad and Israeli PM Bibi Netanyahu on Trump’s side of the ledger.

    Some in the the ‘coup supporting media’ would argue that this gets into fine shades of “what is treason” regards President Trump.

    This sort of argument  ignores the fact that the Obama/Iran Nuclear Deal Deep State faction — the DoJ, FBI, CIA, the State Department and a small faction in the senior civil service at the Defense Department — had the support of the EU political and IC elites as well as Iran’s Mullah’s & the Moslem Brotherhood in ramming home the Iran deal.  And that they

    1. Launched FBI Operation Crossfire Hurricane which;
    2. Illegally used Stefan Halper as a ‘Agent Provocateur’ to tag Trump campaign officials with the FISA tag of ‘Foreign intelligence asset’ to;
    3. Use the full powers of the Federal government to spy on the Trump for President campaign,  and government, plus
    4. Has had Asst. A.G. Rosenstein appoint Special Council Mueller and delegate to him — quite illegally mind you — full authority to conduct on-going FISA surveillance in a criminal investigation against US citizens.

    IMO, the bottom line up front here is that the Trump faction was and remains “constitutional” in its actions — his faction won an election and is following legal procedure.

    The legal terms of art for  “Iran Nuclear Deal” Deep State faction efforts engaged in to date are an ongoing seditious conspiracy to violate both the Trump Campaign and Trump Administration’s civil rights “Under color of Law” in order to overturn the results of the 2016 election.

    The short form for that is the Iran Nuclear Deal faction the Deep State are attempting a Coup d’etat.

    It gets worse.

    Whether or not President Trump finally wins over the Obama faction and takes down the Iranian Mullah’s.  The Obama’s Deep State Faction has done deep, lasting and permanent “Gramscian damage” (See link: http://esr.ibiblio.org/?p=260  for an explanation of the term) to the American Republic, because they attempted a Coup De Etat against the tradition of peaceful succession of executive political power.

    We can no longer take for granted peaceful opposing political party transitions of power in the American political system.

     

    Posted in America 3.0, Americas, Big Government, Civil Liberties, Civil Society, Culture, Current Events, History, Law Enforcement, Leftism, Miscellaneous, National Security, USA | 27 Comments »

    The Truth is Starting to Seep Out about the Spy in the Trump Campaign

    Posted by Michael Kennedy on 19th May 2018 (All posts by )

    Way back during the transition from the Obama Administration, the evidence of illegal surveillance of the Trump Campaign began to appear. First, Admiral Mike Rogers warned Donald Trump, the president-elect, that he was under surveillance by the Obama Administration.

    June 2016: FISA request. The Obama administration files a request with the Foreign Intelligence Surveillance Court (FISA) to monitor communications involving Donald Trump and several advisers. The request, uncharacteristically, is denied.

    October 2016: FISA request. The Obama administration submits a new, narrow request to the FISA court, now focused on a computer server in Trump Tower suspected of links to Russian banks. No evidence is found — but the wiretaps continue, ostensibly for national security reasons, Andrew McCarthy at National Review later notes. The Obama administration is now monitoring an opposing presidential campaign using the high-tech surveillance powers of the federal intelligence services.

    On Tuesday November 8th, 2016 the election was held. Results announced Wednesday November 9th, 2016.

    On Thursday November 17th, 2016, NSA Director Mike Rogers traveled to New York and met with President-Elect Donald Trump.

    Trump moved his transition team to his private golf course immediately.

    The other Mike Rogers, a Republican who was deeply compromised by the Benghazi matter, was quickly dropped from the Trump transition team.

    This worried the DNC mouthpiece WaPoo. Admiral Rogers probably also warned Trump about the former Intel Committee Chair.

    The FBI surveillance and CIA complicity has continued with the appointment of insider Mueller.

    Then they took down Mike Flynn who had once written a letter supporting the complaint of a woman named Robyn Gritz, an FBI agent who had worked with McCabe’s team, and accused him of sexual harassment.

    In 2013, she filed an Equal Employment Opportunity Commission (EEOC) complaint against her FBI supervisors alleging sexual discrimination and hostile work environment. In 2014, she amended her complaint by averring that she suffered “a hostile [work] environment, defamation of character through continued targeting by Andrew McCabe.”

    The FBI’s response claimed that she had become “underperforming, tardy to work, insubordinate, possibly mentally ill…”

    She was forced out.

    In May 2014, Flynn provided a letter on Pentagon stationery which stated that Gritz “was well-known, liked and respected in the military counter-terrorism community for her energy, commitment and professional capacity, and over the years worked in several interagency groups on counter-terrorism targeting initiatives.” He added, “Her work consistently produced outstanding results in the most challenging environments.”

    That is the back story of why the FBI went after General Flynn. Plus, of course, he had resisted Obama’s out reach to Muslims.

    Despite his underlings’ concerns, McCabe’s plan of retaliation against Flynn proceeded apace. According to Joseph diGenova, the newest member of President Trump’s legal team, McCabe set up Flynn for the interview that led to the general’s indictment for lying to the FBI. One of the agents who was tasked with this maneuver sought private legal advice.

    Now, the New York Times, at last, admits the presence of a spy in the Trump campaign. Of course, the Times’ version is the FBI/CIA version with enough spin to make the left feel justified.

    Read the rest of this entry »

    Posted in Big Government, Civil Liberties, Elections, Law Enforcement, National Security, Obama, Trump | 26 Comments »

    Preference Cascades and Past Elections

    Posted by Sgt. Mom on 7th May 2018 (All posts by )

    So, I meant to write something sarcastic and slashing about … whatever over the last weekend, but I got distracted by life, and by a couple of different news reports – one of them being that Kanye West apparently has gotten in touch with his inner conservative and decided – for the moment – to come out enthusiastically for Trump. While not a particular fan of his brand of pop music and acknowledging that his judgement may not be all that – the man married a Kardashian, for g*d’s sake – I have never heard of anyone calling him a stupid man. Talented – yes, fabulously successful, and financially well-rewarded for exercising those talents; there must be more to him than pure dumb luck. Lamentable as it is to me that present-day celebrities wield more social influence than is good for them, and for us … that someone with that much influence in the black community is pointing out some self-evident truths must count for something. Read the rest of this entry »

    Posted in Big Government, Conservatism, Culture, Current Events, Obama, Politics, Trump | 21 Comments »

    Citizens, Subjects, and Audience

    Posted by Sgt. Mom on 30th April 2018 (All posts by )

    I am distracted this week, through having to oversee and assist with a spot of home renovation, and the launch of Book Six of the Luna City Chronicles – One Half Dozen of Luna City, which is available as of today in print, Kindle and other ebook formats – although by no means have I not paid attention to various news hiccups which caught my fleeting attention as they went past.

    As a parent, I can’t help but be sympathetic and supportive of little Alfie Evans’ parents, whose medical situation was as heartbreaking as it was mysterious and likely terminal. Just as I cannot help being viciously cynical regarding the decision by hospital and National Health Service administrators to set the poor tot on the so-called Liverpool Care pathway. Over the strenuous objections of his parents, the church which his parents apparently belonged to, any number of advocates for the rights of parents – all life support cut off, including oxygen, nourishment and water, with the powers of the State and its police minions standing by to enforce the dictates of the state. Read the rest of this entry »

    Posted in Anglosphere, Big Government, Civil Liberties, Current Events, Health Care, Media, The Press, Trump | 38 Comments »

    Paying Higher Taxes Can be Very Profitable

    Posted by David Foster on 17th April 2018 (All posts by )

    (originally posted in 2010)

    Chevy Chase, MD, is an affluent suburb of Washington DC. Median household income is over $200K, and a significant percentage of households have incomes that are much, much higher. Stores located in Chevy Chase include Tiffany & Co, Ralph Lauren, Christian Dior, Versace, Jimmy Choo, Nieman Marcus, Saks Fifth Avenue, and Saks-Jandel.

    PowerLine observed that during the 2008 election season, yards in Chevy Chase were thick with Obama signs–and wondered how these people were now feeling (in October 2009) about the prospect of sharp tax increases for people in their income brackets.

    The PowerLine guys are very astute, but I think they were missing a key point on this one. There are substantial groups of people who stood to benefit financially from the policies of the Obama/Pelosi/Reid triumvirate, and these benefits can greatly outweigh the costs of any additional taxes that these policies require them to pay. Many of the residents of Chevy Chase–a very high percentage of whom get their income directly or indirectly from government activities–fall into this category.

    Read the rest of this entry »

    Posted in Big Government, Politics, Taxes, USA | 4 Comments »

    Quote of the Day (Follow Up)

    Posted by Jonathan on 29th March 2018 (All posts by )

    Conrad Black:

    Mr. Trump isn’t the problem, but among the symptoms of the problem are that the director and deputy director of the FBI have been fired for cause as the Bureau virtually became the dirty-tricks arm of the Democratic National Committee, and that, as the Center for Media Studies and Pew Research have both recorded, 90% of national-press comment on Mr. Trump is hostile. Mr. Trump may have aggravated some of the current nastiness, but his chief offense has been breaking ranks with the bipartisan coalition that produced the only period of absolute and relative decline in American history.

    I think Black is too harsh on George W. Bush but this column is otherwise excellent.

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    Posted in Anglosphere, Big Government, Civil Liberties, Civil Society, Law, Law Enforcement, Media, North America, Politics, Systems Analysis, Tea Party, Trump | 3 Comments »

    Quote of the Day

    Posted by Jonathan on 26th March 2018 (All posts by )

    Conrad Black:

    Here are two current examples of [the failings of the legal system and of journalism]: Canadians don’t like Donald Trump, largely because his confident and sometimes boorish manner is un-Canadian. He is in some respects a caricature of the ugly American. But he has been relentlessly exposing the U.S. federal police (FBI) as having been politicized and virtually transformed into the dirty tricks division of the Democratic National Committee. Few now doubt that the former FBI director, James Comey, was fired for cause, and the current director, backed by the impartial inspector general and Office of Professional Responsibility, asserts that Comey’s deputy director, Andrew McCabe, was also fired for cause. There are shocking revelations of the Justice Department’s illegal use of the spurious Steele dossier, paid for by the Clinton campaign, and of dishonest conduct in the Clinton email investigation, the propagation of the nonsense that Trump had colluded with Russia, and of criminal indiscretions and lies in sworn testimony by Justice officials. It is an epochal shambles without the slightest precedent in American history (certainly not the Watergate piffle), yet our media slavishly cling to a faded story of possible impeachable offences by the president.
     
    The American refusal to adhere to the Paris climate accord is routinely portrayed as anti-scientific heresy and possibly capitulation to corrupt oil interests. The world’s greatest polluters, China and India, did not promise to do anything in that accord; Europe uttered platitudes of unlimited elasticity, and Barack Obama, for reasons that may not be entirely creditable, attempted to commit the United States to reducing its carbon footprint by 26 per cent, at immense cost in jobs and money, when there is no proof that carbon has anything to do with climate and the United States under nine presidents of both parties has done more for the ecology of the world than any other country. Journalistic failure on this scale, and across most of what is newsworthy, added to an education system that is more of a Luddite day-care network, produces a steadily less informed public, who, while increasingly tyrannized by lawyers, elect less capable public office-holders.
     
    Lenin famously wrote: “What is to be done?” We must ask ourselves the same question but come up with a better answer than he did.

     

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    Posted in Anglosphere, Big Government, Civil Liberties, Civil Society, Law, Law Enforcement, Media, North America, Politics, Systems Analysis, Tea Party, Trump | 8 Comments »

    The Sec of State Tillerson Firing

    Posted by Trent Telenko on 13th March 2018 (All posts by )

    There was no single reason for the Sec of State Tillerson Firing…there was a laundry list.

    According to various sources, Tillerson was pretty much against implementing President Trump’s foreign policy, trade and immigration agenda for Trump’s 2nd year as President and chaffed Pres. Trump over Russia besides:

    1. Tillerson was working with the EU to stop the President from tearing up the Iran deal.
    2. Tillerson wanted to remain in the TPP, TAP, & NAFTA.
    3. Tillerson was against NK talks.
    4. Tillerson was against China Tariffs.
    5. Tillerson wanted to remain in the Paris Climate accord.
    6. Tillerson did not support making Jerusalem the home of our embassy.
    7. Tillerson wanted to keep open borders/high refugee resettlement.
    8. Tillerson was talking that Russia affected our election results just before the Nunes Committee put a bullet in the head of the “Muh-Russia Collusion Delusion.”

    Working behind Pres. Trump’s back with the EU over maintaining Pres Obama’s Iran nuclear deal — which Pres. Trump wants eliminated and the abandoned sanctions reinstated — was the last straw for Tillerson.

    Discuss.

    Posted in Big Government, Current Events, International Affairs, Iran, Middle East, Military Affairs, National Security, Politics | 34 Comments »

    Maybe I’m Whistling Past the Graveyard but I don’t think so

    Posted by Ginny on 13th March 2018 (All posts by )

    Instapundit links to an article about Kasich’s education plan. The Never Trumpers keep arguing in The Weekly Standard that Trump has all the traits of an authoritarian. Well, perhaps. Sure he says he’d like the power of a Chinese leader – so did Obama as I remember. And he can bully a bit. But these warnings are amidst articles on de Vos’s devolution of power in the Education Department or Pruitt’s in the environmental area or . . . throwing DACA back to Congress, for God’s sake. Well it never hurts to be wary but we could stay in touch with reality. This is like the Russian collusion – if he were colluding why in the hell would he open Alaskan oil drilling? I still can’t take all of his speeches & wince at his twitters, but at least he understands that nationalism is something that should be drawing us together – not pulling us apart (at least historic nationalism). And he’s funny.

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    Posted in Big Government, Trump | 13 Comments »

    With a Pillow

    Posted by Sgt. Mom on 6th February 2018 (All posts by )

    In Iowahawk’s deathless phrase regarding the establishment press, “Journalism is about covering important stories. With a pillow, until they stop moving.” Here it is a weekend and a couple of working days after the release of the notorious and long-awaited FISA memo, and the relatively conservative side of the blogosphere is still happily chewing it over. Doubtless the professional national media wishes the whole matter would just go away already, just because. Frankly, the whole matter reminds me of the swiftboat veterans and the matter of John Kerry’s service in Vietnam.

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    Posted in Big Government, Blogging, Crime and Punishment, Current Events | 31 Comments »

    Their Own Worst Enemy

    Posted by Sgt. Mom on 29th January 2018 (All posts by )

    A discussion at According to Hoyt this last week developed from a long look the recent so-called “woman’s march”; an event which appeared to really be an open-air scream therapy session for a certain subset of the human population. They had the opportunity to mingle with others of their ilk, dress up in pink hats and vagina costumes and inform the rest of the world (yet again) of their acute unhappiness that Hillary, the Dowager Duchess of Chappaqua, formerly known as Her Inevitableness had not been able to win an election rigged in her favor, and that Donald Trump was currently the President of the United States. MS Hoyt speculated on what, exactly, the protesters were on about; what rights were imperiled, exactly? What did all the feel-good, content-free slogans have to do with anything in the lives of real, live women and men working for a living? And how did dressing up as an anatomically sort-of-correct vagina have to do with anything, in the real world. And in the long run, weren’t such pointless demonstrations of hysteria actually counter-productive, in that genuine misogynists would point to them as proof positive that women were too flighty, too emotional, too damn silly to manage anything, let alone their own lives.
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    Posted in Big Government, Blogging, Civil Society, Conservatism, Current Events, Deep Thoughts, Feminism | 18 Comments »

    “This Civil War – My South Carolina Tea Party Convention Speech”

    Posted by Jonathan on 28th January 2018 (All posts by )

    Daniel Greenfield:

    The attacks on Trump show that elections don’t matter to the left.
     
    Republicans can win an election, but they have a major flaw. They’re not leftists.
     
    That’s what the leftist dictatorship looks like.
     
    The left lost Congress. They lost the White House. So what did they do? They began trying to run the country through Federal judges and bureaucrats.
     
    Every time that a Federal judge issues an order saying that the President of the United States can’t scratch his own back without his say so, that’s the civil war.
     
    Our system of government is based on the constitution, but that’s not the system that runs this country.
     
    The left’s system is that any part of government that it runs gets total and unlimited power over the country.
     
    If it’s in the White House, then the president can do anything. And I mean anything. He can have his own amnesty for illegal aliens. He can fine you for not having health insurance. His power is unlimited.
     
    He’s a dictator.
     
    But when Republicans get into the White House, suddenly the President can’t do anything. He isn’t even allowed to undo the illegal alien amnesty that his predecessor illegally invented.
     
    A Democrat in the White House has “discretion” to completely decide every aspect of immigration policy. A Republican doesn’t even have the “discretion” to reverse him.
     
    That’s how the game is played. That’s how our country is run.
     
    [. . .]
     
    The Trump years are going to decide if America survives. When his time in office is done, we’re either going to be California or a free nation once again.

    Read the whole thing.

    Posted in Big Government, Political Philosophy, Politics, Tea Party, Trump | 15 Comments »

    Bonhoeffer on Stupidity and the Public Sphere

    Posted by David Foster on 19th January 2018 (All posts by )

    Dietrich Bonhoeffer, a German theologian who became a leading member of an anti-Nazi conspiracy, wrote the following while he was in prison awaiting execution:

    Upon closer observation, it becomes apparent that every strong upsurge of power in the public sphere, be it of a political or a religious nature, infects a large part of humankind with stupidity. … The power of the one needs the stupidity of the other. The process at work here is not that particular human capacities, for instance, the intellect, suddenly atrophy or fail. Instead, it seems that under the overwhelming impact of rising power, humans are deprived of their inner independence and, more or less consciously, give up establishing an autonomous position toward the emerging circumstances. The fact that the stupid person is often stubborn must not blind us to the fact that he is not independent. In conversation with him, one virtually feels that one is dealing not at all with him as a person, but with slogans, catchwords, and the like that have taken possession of him. He is under a spell, blinded, misused, and abused in his very being. Having thus become a mindless tool, the stupid person will also be capable of any evil and at the same time incapable of seeing that it is evil. This is where the danger of diabolical misuse lurks, for it is this that can once and for all destroy human beings.

    via Intellectual Takeout

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    Posted in Big Government, Deep Thoughts, Germany, Human Behavior, Leftism | 11 Comments »

    Flyoverphobia

    Posted by Sgt. Mom on 17th January 2018 (All posts by )

    So, there has always been a tension existing between city folks and country folks; the tale of the city mouse and the country mouse being an example. Then there are all those jokes about the city slicker and the country bumpkin, the effete city dweller and the down-to-earth country folk, the books, movies and television series painting the city as a glamorous yet spiritually and physically unhealthy place, the country being dull, desperately boring, backwards, even a bit dangerous … all in the spirit of good fun, mostly. But now we have a new and malignant version, and there is nothing at all fun about it. Here we have the bicoastal enclaves, all drawn as the glamorous and fabulously wealthy, sensitive and with-it woke folks … and then you have the flyover country in between, filled with – as the bicoastal see it – with those hateful, stupid looser deplorables, clinging to their guns, and religion, and hating on all those with darker skins.
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    Posted in Big Government, Business, Conservatism, Deep Thoughts, Entrepreneurship, Leftism, Trump | 38 Comments »

    It’s looking as though the Trump team surveillance was done without a FISA warrant.

    Posted by Michael Kennedy on 10th January 2018 (All posts by )

    The war between President Trump and his government and the Democrats is heating up.

    Yesterday Diane Feinstein declassified and released the Simpson testimony transcript.

    In doing so, Feinstein and her Democratic colleagues are acting at Simpson’s behest. In his recent New York Times op-ed column (written with his colleague Peter Fritsch), Simpson complained about Republicans’ leak of selected details from his testimony to various congressional committees.

    Judiciary Committee Chairman Grassley has resisted the release of the transcript while the committee has yet to complete its investigation. Senator Grassley is not happy with Feinstein.

    One assumption, that I think well founded, is that this was done to coach subsequent witnesses to get their stories straight.

    Kim Strassel is one who has been reporting on this She has a new report.

    consider an email recently disclosed by the Young Turks Network, a progressive YouTube news channel. It’s dated Dec. 19, 2017, and its author is April Doss, senior counsel for the committee’s Democrats, including Vice Chairman Mark Warner.

    Ms. Doss was writing to Robert Barnes, an attorney for Charles C. Johnson, the controversial and unpleasant alt-right blogger. Mr. Johnson’s interactions with Julian Assange inspired some in the media to speculate last year that Mr. Johnson had served as a back channel between the Trump campaign and WikiLeaks. There’s still no proof, but in July the Intelligence Committee sent a letter requesting Mr. Johnson submit to them any documents, emails, texts or the like related to “any communications with Russian persons” in a variety of 2016 circumstances, including those related to “the 2016 U.S. Presidential Campaign.”

    Mr. Barnes seems to have wanted clarification from Ms. Doss about the definition of “Russian persons.” And this would make sense, since it’s a loose term. Russians in Russia? Russians in America? Russians with business in the country? Russians who lobby the U.S. and might be affected by the election—though not in contact with campaigns?

    Ms. Doss’s response was more sweeping than any of these: “The provision we discussed narrowing was clarifying that the phrase ‘Russian persons’ in [the committee letter] may be read to refer to persons that Mr. Johnson knows or has reason to believe are of Russian nationality or descent”.

    This is actually humorous. “Russian descent?” There are now jokes about ordering Russian Dressing in DC can get you investigated.

    The truth is not as funny.

    It looks like the surveillance of the Trump campaign was done by DOJ and the FBI without warrants at all. That is very illegal and should put some people in prison.

    President Obama’s political operatives within the DOJ-NSD were using FISA 702(17) surveillance “about inquiries” that would deliver electronic mail and phone communication for U.S. people (Trump campaign). The NSD unit (John Carlin) was working in coordination with the FBI Counterintelligence Unit (Bill Priestap, Peter Strzok etc.) to look at this campaign activity. DOJ Attorney Lisa Page was the intermediary between the DOJ National Security Division and he FBI Counterintelligence Division.

    In an effort to stop the FISA 702(17) activity NSA Director Mike Rogers initiated a full 702 compliance review. However, before the review was complete the DOJ-NSD had enough information for their Russian narrative; which was built upon FISA-702(17) that began in July ’16 per James Comey. Mike Rogers stopped the FISA702(17) process on October 26th 2016. As a result of his identifying the activity, Rogers became a risk; DNI James Clapper demanded he be fired.

    The plot was the “insurance policy” Strzok mentioned. The story is becoming more clear every day.

    On November 17th, 2016, NSA Director Admiral Mike Rogers went to see President-Elect Donald Trump in Trump Tower, New York. –SEE HERE– Director Rogers never told his boss DNI, James Clapper.

    ♦ On November 18th, 2016, the Trump Transition Team announced they were moving all transition activity to Trump National Golf Club in Bedminster, New Jersey. –SEE HERE– Where they interviewed and discussed the most sensitive positions to fill. Defense, State, CIA, ODNI.

    The transition team was set up in Trump Tower. The very next day, November 18th 2016, Trump moves the entire transition team to Bedminister New Jersey?

    Does this make more sense now?

    Yes, it does.

    It looks like they dd not even apply for a FISC warrant after they were turned down in July. They just “did it.”

    Sort of like the scene from “Absence of Malice.”

    Posted in Big Government, Conservatism, Elections, Trump | 32 Comments »

    I Am a Barbarian

    Posted by Jay Manifold on 23rd December 2017 (All posts by )

    Scott, James C. Against the Grain: A Deep History of the Earliest States. New Haven: Yale University Press, 2017.

    Scott has hit another metaphorical grand slam with this one, a worthily disconcerting follow-on to his earlier work. I have previously read (in order of publication, rather than the order in which I encountered them) The Moral Economy of the Peasant, Seeing Like a State, and Two Cheers for Anarchism, and found them congenial. Scott is particularly good at encouraging a non-elite viewpoint deeply skeptical of State power, and in Against the Grain he applies this to the earliest civilizations. Turns out they loom large in our imagination due to the a posteriori distribution of monumental ruins and written records—structures that were often built by slaves and records created almost entirely to facilitate heavy taxation and conscription. Outside of “civilization” were the “barbarians,” who turn out to have simply been those who evaded control by the North Koreas and Venezuelas of their time, rather than the untutored and truculent caricatures of the “civilized” histories.

    By these criteria, the United States of America is predominately a barbarian nation. In the order given above:

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    Posted in Americas, Anglosphere, Big Government, Book Notes, Civil Society, Crony Capitalism, Culture, Current Events, Education, Entrepreneurship, History, Immigration, International Affairs, Latin America, Law Enforcement, Libertarianism, Markets and Trading, Military Affairs, National Security, North America, Political Philosophy, Politics, Society, Systems Analysis, Tradeoffs, Transportation, USA | 7 Comments »

    A Pretty Good Explanation of the “Russia did it” story.

    Posted by Michael Kennedy on 12th December 2017 (All posts by )

    This is an article that was deleted from Huffington Post without explanation after a long time contributor submitted it.

    Here is the Deep State at work.

    A lesson of the 2016 campaign was that growing numbers of Americans are fed up with three decades of neoliberal policies that have fabulously enriched the top tier of Americans and debased a huge majority of the citizenry. The population has likewise grown tired of the elite’s senseless wars to expand their own interests, which these insiders try to conflate with the entire country’s interests.

    America’s bipartisan rulers are threatened by popular discontent from both left and right. They were alarmed by the Bernie Sanders insurgency and by Donald Trump’s victory, even if Trump is now betraying the discontented masses who voted for him by advancing tax and health insurance plans designed to further crush them and benefit the wealthy.

    He is obviously not a Trump fan but his criticism of both sides sounds pretty accurate.

    I’ve pitched numerous news stories critical of U.S. foreign policy to a major American newspaper that were rejected or changed in the editorial process. One example is the declassified Defense Intelligence Agency document of August 2012 that accurately predicted the rise of the Islamic State two years later.

    The document, which I confirmed with a Pentagon spokesman, said the U.S. and its Turkish, European and Gulf Arab allies, were supporting the establishment of a Salafist principality in eastern Syria to put pressure on the Syrian government, but the document warned that this Salafist base could turn into an “Islamic State.”

    But such a story would undermine the U.S. government’s “war on terrorism” narrative by revealing that the U.S.-backed strategy actually was risking the expansion of the jihadists’ foothold in Syria. The story was twice rejected by my editors and has received attention almost entirely — if not exclusively — on much-smaller independent news Web sites.

    Again, he is a left winger but so was the guy who originally published the Deep State argument on Bill Moyer’s site.

    The concerns may be distorted by the writer’s own bias but the reality is that we are all threatened.

    Much of this spreading global hysteria and intensifying censorship traces back to Russia-gate. Yet, it remains remarkable that the corporate media has failed so far to prove any significant Russian interference in the U.S. election at all. Nor have the intelligence agencies, Congressional investigations and special prosecutor Robert Mueller. His criminal charges so far have been for financial crimes and lying to federal authorities on topics unrelated to any “collusion” between the Trump campaign and Russians to “hack” Democratic emails.

    It’s a long article and marred a bit by the writer’s left wing bias but it is worth reading.

    More Deep State News.

    In an otherwise well-buried interview between former interim CIA Director Mike Morell, (the temp director following Petraeus ouster used during initial Benghazi cover), there’s an admission by Morell about the politicized Deep State Intelligence leadership targeting candidate Donald Trump.

    What this interview tells CTH is that the Intelligence Community, writ large, is on the precipice of massive institutional change -perhaps high level firings of remaining mid level operators and management- and those who participated in the historic politicization are now attempting to shape an explanation.

    The CIA was participating in Hillary’s campaign.

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    Posted in Big Government, Civil Liberties, Elections | 8 Comments »

    America’s Principal-Agent Problem

    Posted by Michael Kennedy on 10th November 2017 (All posts by )

    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 principal–agent 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.

    Read the rest of this entry »

    Posted in Big Government, Civil Society, Elections, Politics | 23 Comments »