Archive for the 'Obama' Category

As a Boston area baby boomer, I belted out the National Anthem in my youth with conviction at sporting events. Massachusetts educators emphasized its role as the birthplace of the American Revolution from distant unaccountable politicians (leaving out the crucial role of fake news written and published by the infamous brewer’s son Sam Adams) and the motivating principles, summed up by Virginian Patrick Henry’s immortal phrase: “give me liberty or give me death.”

In the 1970s Boston’s U.S. Congressman Speaker of the House Tip O’Neill quipped “all politics is local.” Now the progressive daily prayer on Twitter begins “Our father, who art in Washington D.C. give us money – a guaranteed minimum income, reparations, welfare, entitlements, etc. and other free stuff – food, housing, medical care, a college education.”

Bostonian President Kennedy’s appeal to voters’ patriotism in the 1960’s to “Ask not what your country can do for you. Ask what you can do for your country” is reversed today. Patriotism is as out of favor with many millenials (who proudly display their participatory soccer trophies) as are the Boston (now New England) Patriots for hogging the Super Bowl Trophy this century, stigmatizing other teams as “losers.”

Competing Foreign Ideologies

Traumatized by competing ideas, many millenials would trade U.S. competitive capitalism and individual freedom for a free lunch. “History doesn’t repeat itself but it rhymes” according to Mark Twain. The core contemporary national political issue is whether America’s popular progressive ”social democracy” ideology rhymes with its founding principles and historical values or foreign ideologies that threaten the body politic?

The Communism Threat

The Bolshevik Revolution ended an anachronistic Imperial dynasty in a country with no prior democratic traditions. Communist intellectual Leon Trotsky promised a utopian Marxist socialism, international brotherhood and the end of nation-state competition for resources as the state would wither away. Communist atrocities under Stalin, murders and deaths measured in the tens and hundreds of millions, predated the WW II Western Alliance in a desperate attempt to industrialize a backward agrarian society.

Stalin promoted opaque Russian Imperialism under the banner of brotherhood. Soviet skullduggery in post War elections in Europe and around the globe – and CIA involvement to counter it (or visa-versa) – was widespread. The post WW I & II “Red Scare” of communist infiltration of state institutions in the U.S. was somewhat over-blown, but the belief that communists could be elected in a democracy based on false promises then turn dictatorial and refuse to relinquish power as has occurred most recently in Venezuela, was well founded. Fearing such a cancer on the body politic, the Communist Control Act of 1954 outlawing the Communist Party in the United States suppressing free speech passed with the full support of progressive Democrats who wanted to distance themselves from ”Uncle Joe” Stalin (and later, many others, including Mao).

Fascism, Communism’s Cousin and Bitter Political Rival

Hitler came to power in democratic Germany promising economic prosperity, understandably as wartime consumer deprivation far exceeded that of France and Britain (where communist sympathies were widespread), and post war reparations inhibited a consumer recovery. Although Mussolini, the founder of European fascism, once headed the Communist Party in Italy, and Hitler founded the National Socialist Party, neither implemented socialism domestically. By national, they meant a return to Germany’s pre-War greatness: consumers initially benefitted from a massive boom in defense spending before once again suffering wartime deprivations.

The nationalist agenda was less imperial than traditional. European history since 1453 is largely related to border wars as Germany is caught in the middle between the British and French empires to the west and Russian empire to the east: only the scale of Nazi eastward border expansion represented a radical departure. In Hitler’s view this rhymed with American westward expansion and genocide of the indigenous populations. He persecuted the Jews, even ethnic Germans, based on Nazi perception of Jewish financing of German enemies on the WW I battlefield and in the labor movement fomenting unrest on the home front and their perceived outsized influence in the Bolshevik communist movement (Trotsky was Jewish).

Hitler inherited a failing German economy. He was aware that the economic potential of the western capitalist powers were orders of magnitude greater and growing faster, causing him to knowingly take enormous risks to address what he believed was an existential threat. Even as he acquired new territories he was playing catch up. Unlike Stalin, he was not driven by an anti-capitalist economic ideology, but intervention in the German economy increased as the Wehrmacht consumed an ever increasing share of GDP – over half at the peak – relying on private enterprise and the profit and price mechanism to the extent feasible (and arguably more than FDR) relative to the size of the war effort. Dictatorial power and crony capitalist corruption – favoritism of the political elite – was an inevitable result of a rising government share of the economy.

Racist ideology contributed to his miscalculation of the military industrial ability of the Soviet Union, where his early luck inevitably ran out, after which a war of attrition would exploit Germany’s relative economic weakness. Economic desperation determined the magnitude of Nazi atrocities, less in scope and subsequent to those of the communists in the Soviet Union, but driven by racism.

In 1977 the U.S. Supreme Court extended freedom of speech protection to the National Socialist Party of America, a racist fringe rather than socialist party.

European Social Democracy

In the wake of WW II deprivation and devastation in Europe, “social democracy” – a greater role of the state in providing household necessities – was viewed as a more benign alternative to communism. Britain, particularly Scotland, experimented primarily with socialized housing and medical care until the late 1970s when, as British Prime Minister Margret Thatcher put it, they were running out of “other peoples’ money.”It was also tried in the small relatively homogeneous Nordic countries, running out of money in Sweden in the 1990s and Finland more recently. These experiments were not democratic socialism or the fascist prone democratic capitalism, as all were financed by taxing capitalist-created income and resulted in retrenchment rather than socio-political collapse when they went to far.

American Progressivism Rhymes with Fascism and Communism, not European Social Democracy

But for democrat skullduggery, Socialist Bernie Sanders might well have been the 2016 Democratic candidate and also won the election. Most of his younger Democrat competitors for 2020 support the Green New Deal, the latest utopian vision. Their success hinges on rhyming this vision with small-state European social democracy, but the American progressive movement has always focused on the entire nation. When a failed ideology is adopted by a large too-big-to-fail nation-state like Germany or the Soviet Union in the past or the U.S. at present, unaccountable politicians cover-up and double down on failure until it is systemic and seismic like the 2008 financial crisis.

Progressivism’s historical nationalism and racism and current methods of intervention in a capitalist market economy rhyme with fascism: its premise that economic progress is attributable to politics and its utopian goal of social justice without regard to national borders both rhyme with communism: the inherent dictatorial lack of political or fiscal accountability rhymes with both.

American Nationalism

Federal power ballooned during the wars of progressive presidents TR, Wilson, FDR and LBJ. That American patriotism is excessively nationalistic has been an issue since the Monroe Doctrine and subsequent Manifest Destiny. America’s support of free trade post WW II supported by American hegemony over trade routes worked well, as it did under British hegemony leading up to WW I. But the post WW II order is once again breaking down as a consequence of increasing nation-state rivalry over resources and trade routes. President Trump’s “Make America Great Again” is daily attacked not as patriotism but Nazi racist nationalism. The future of American Hegemony should be the central issue in the next presidential election.

Racism and Sexism

In a competitive free market economy those who would inappropriately discriminate by race or sex always lose out, always: racism requires political protection from competition. Socialism is inherently discriminatory; the state determines who gets what and who pays. The Democratic Party was the party of slavery, Jim Crow and voter discrimination; it remains the party of restrictive working laws and regulations (with a “disparate impact” on black youth employment) e.g., with well above market “living” minimum wages, credentialing and anti-immigrant worker prohibitions, and admission quotas. Winners beget losers: progressives once again discriminate against Asians.

The progressive party founded the eugenics movement targeted to limit the black population from which Hitler borrowed ideology. Roe versus Wade represents a eugenic success story, as abortion for the white population at the time required no more than a bus ticket to the next state. Now about half of black pregnancies are terminated.

The Road to Serfdom

The promise of “free stuff” to those mostly not yet paying taxes and of cancelling their debt likely explains college students’ preference for socialism over capitalism, and the myth of socialist environmentalism the Green New Deal environmental goals.

Income inequality and Social Justice in a Democracy

America’s social welfare system while not as generous as the Nordic countries generally provides a standard of living sufficient by international comparison and luxurious compared to the deprivations suffered when fascism and communism incubated. Competitive market capitalism produces unequal incomes, the source of its ability to raise the living standards of all through increased productivity. Progressive policies that cross the constitutional threshold of equality of opportunity to demand equality of economic outcomes by broadening the base of the politically favored are a subset of crony capitalism that favors the political elite at the expense of society generally, a failed ideology. Socialism fails every time because incentives matter.

The Green New Deal: a Fentanyl induced Utopian High

Concern for the environment and the human impact on it is warranted, but what to do about it is a difficult question primarily for foreign diplomats. The Green New Deal adopted by only the U.S. would provide negligible environmental benefit. But as virtually all past environmental initiatives, it would be a bonanza for the crony capitalists and their political patrons. Whether or not the Green New Deal cost $100 trillion or only $10 trillion, it is a road to serfdom for millenials, with no exit provided by the archaic modern monetary theory.

Democrats Cross the Rubicon

“The founders of the Roman Republic, like the American founding fathers, placed checks and balances on the power of their leaders. The Romans, however, came up with a way to sidestep these checks and balances when strong leadership was needed, such as a time of crisis.” 

Communism, fascism, the New Deal and social democracy were all implemented in response to an existential crisis. It is no accident that progressives exploited the “environmental crisis” to push their social justice agenda: these faux crises don’t justify national socialism, an existential threat to the body politic.

The majority of American voters – positively correlated to age – still properly associate socialism with the totalitarian communist and Nazi regimes rather than European democratic socialism as socialist Sanders’ argues, undercut by his Moscow honeymoon. The two big progressive myths are that European social democracies never run out of money and that “other peoples’ money” i.e., the other party’s voters, will somehow finance the socialist agenda. Green New Deal proponents refused to vote for it to avoid voter accountability for the costs. National socialism and the virtual one party rule necessary to achieve it provides the best explanation for the rest of the 2020 “democratic” agenda.

Progressive Social Democracy isn’t Nordic

The population of California is four times that of the largest Nordic country Sweden. It, like all the progressive states is over taxed and over indebted. Obamacare impregnated promiscuous states with these twin fiscal burdens with a whispered promise of a subsequent opaque federal bailout when they matured, making states subservient to D.C. like Soviet Oblasts to Moscow.

Suppression of Free Speech

The free speech amendment is listed first as the foremost safeguard against infringement of individual freedom and equality under the law. The Communist Party remains illegal in U.S. due to its meretricious promises, now virtually indistinguishable from those of progressives. Conservative speech to expose the fallacies of progressive ideology and the threat to the Republic is suppressed by the democratic state apparatus. Free speech invites propaganda, including Russian translations, think tank and academic “research” but should be protected, even for communists and neo-Nazis.

From Republicanism to Democratic Totalitarianism and One Party Rule

The American experiment with a limited government republic has been undergoing constant change since the “peoples” candidate Andrew Jackson, founder of the Democratic Party and seventh President, while winning the popular vote in the post-universal male suffrage election of 1824 lost in the Electoral College, which he then proposed to abolish. Subsequent progressive constitutional amendments extended voting rights to former slaves and their decedents (15^th), women (19^th) and the direct election of Senators (17^th).

Even with control of the House, Senate and Presidency, this wasn’t enough to pass Obamacare, arguably the stealth stepping stone to single payer Medicare for all. Unprecedented political maneuvering and prosecutorial and administrative abuse by then FBI Director Robert Mueller was employed. Then a lone opinion of Chief Justice Roberts relied on another progressive amendment, the 16^th enabling unlimited power to tax, to save it.

Socialism in a large diverse nation like the U.S. requires permanent dictatorial powers of enforcement, as highlighted by the requirements of Obamacare and the controversy over the individual mandate. This explains the progressive platform on: voting rights; opposing voter registration, supporting immigration of dependents with voting rights rather than working rights, eliminating the Electoral College, reducing the voting age to 16 years old, registering prisoners, and drive-by voter registration: the Supreme Court; nominating liberal (i.e., anti-Constitutional) Supreme Court Justices, packing the Supreme Court (again), and: the apparent attempt by the Obama Administration to implement PRI style hereditary presidential selection. This rhymes with Mao’s “people’s democratic dictatorship” not the individual liberty of the American Lion.

To quote America’s greatest economist Milton Friedman:  “A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.”

Kevin Villani

 
 
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Kevin Villani, chief economist at Freddie Mac from 1982 to 1985, is a principal of University Financial Associates. He has held senior government positions, has been affiliated with nine universities, and served as CFO and director of several companies. He recently published Occupy Pennsylvania Avenue on the political origins of the sub-prime lending bubble and aftermath.

Why do senior politicians across the Western world systematically engage in this and other similar sorts of newspeak? Here, I suggest, Obama and Clinton (and their peers) believe millions of otherwise ordinary American citizens are deplorables. They believe that if they were to discuss the reality of world events with their fellow citizens, and do so without dissembling, then any number of our fellow citizens would organize communal violence, mayhem, and murder—on a mass scale.

Read the entire post.

Professor ZZZ asks: “Trump is not Stalin but in the history of national (federal) political figures in this country, I’m wondering … where [would] you put Trump? … Having a POTUS so publicly awful along those lines lowers the horrible bar so dramatically that we will pay for years to come. Not being Stalin but being Roy Cohn is a hell of a legacy.”
 
Tillman responded:
 
[. . .]
 
Trump is ahead of Woodrow Wilson: World War I, and! his resegregation of the federal civil service. I grant you that being ahead of Wilson is not saying much…but then, the nation survived Wilson, and no one today thinks of Wilson as having lowered the bar vis-a-vis future presidents. Professor ZZZ seems to be worried about this. He wrote: “Having a POTUS so publicly awful along those lines lowers the horrible bar so dramatically that we will pay for years to come.” Really?—Will we pay for it in years to come, or is this just a shabby slippery slope-type argument?
 
I cannot say I see much sense in Professor ZZZ’s references to Roy Cohn. Roy Cohn’s permanent claim to fame is his association with McCarthy and aggressive anticommunism. Trump, by contrast, has been criticized for being too close to Putin. It is not exactly the same; actually, the two are not alike at all.
 
If words and pretty speeches are the measure of a president, then Trump comes up short. The question is whether that is the correct standard for measuring presidents in a dangerous world.

Read the whole thing.

Seth’s last line is a good summary of the general flaw with many anti-Trump arguments. However, Seth doesn’t go far enough with specific examples:

-Trump didn’t withdraw US forces precipitately from an overseas conflict, leaving the worst of our enemies to fill the resulting power vacuum as Obama did in Iraq.

-Trump didn’t reverse longstanding US policy, deprecating alliances with pro-American countries, in a foolish and futile effort to buy the love of the Iranian mullahs as Obama did.

-Trump didn’t let himself get played by the North Korean dictatorship as Clinton, both Bushes and Obama did.

-Trump didn’t use the IRS to harass his political opponents – as Nixon threatened to do, as the Clintons did to right-wing activist organizations, and as Obama did to organizations and individuals who were active in the Tea Party movement.

-Trump didn’t use the FBI and CIA to spy on his Democratic rivals’ election campaigns as Obama seems to have done to Trump’s 2016 presidential campaign.

I can think of numerous other examples of unwise or malicious actions taken by previous presidents that Trump hasn’t done. Feel free to add additional examples in the comments.

I was reminded this week, upon reading the vapid blatherings of Alexandria Occasional-Cortex, the freshman dunce of the House of Representatives, of an acrimonious exchange some years ago on the now-defunct Open Salon website. Ms. O-C Full Stop had opined that the Tea Party was racist, reactionary and funded by the Koch brothers. Yes, that old canard comes around yet once more. And I know that it is indeed a canard in the mouths of progressive fools because I was involved almost from the very beginning in a big-city local Tea Party chapter.
A little history to explain this: Read the rest of this entry »

I am more and more coming around to the opinion of David Goldman and Michael Ledeen.

The Russia hoax was aimed at Michael Flynn and his role as a Trump advisor.

It was all about General Flynn. I think it began on the battlefields of Iraq and Afghanistan, when Flynn changed the way we did intelligence against the likes of Zarqawi, bin Laden, the Taliban, and their allies.

General Flynn saw that our battlefield intelligence was too slow. We collected information from the Middle East and sent it back to Washington, where men with stars on their shoulders and others at the civilian intel agencies chewed it over, decided what to do, and sent instructions back to the war zone. By the time all that happened, the battlefield had changed. Flynn short-circuited this cumbersome bureaucratic procedure and moved the whole enterprise to the war itself. The new methods were light years faster. Intel went to local analysts, new actions were ordered from men on the battlefield (Flynn famously didn’t care about rank or status) and the war shifted in our favor.

I read Dakota Meyer’s book. He was denied permission to accompany his Civil Affairs unit into an Afghan village because he was being punished for shooting at Taliban tribesmen firing mortar rounds into his base camp. The reason ? They were “not in uniform.” The ROE of the Obama administration saved his life as the unit he should have been with was ambushed and killed. He made attempts to rescue them, resulting in his award the Medal of Honor.

On 8 September 2009, near the village of Ganjgal, Meyer learned that three Marines and a Navy Corpsman, who were members of Meyer’s squad and his friends, were missing after being ambushed by a group of insurgents. Under enemy fire, Meyer entered an area known to be inhabited by insurgents and eventually found the four missing servicemen dead and stripped of their weapons, body armor and radios. There he saw a Taliban fighter trying to take the bodies. The fighter tackled Meyer, and after a brief scuffle, Meyer grabbed a baseball-sized rock and beat the fighter to death.[8] With the help of Afghan soldiers, he moved the bodies to a safer area where they could be extracted.[9] During his search, Meyer “personally evacuated 12 friendly wounded and provided cover for another 24 Marines and soldiers to escape likely death at the hands of a numerically superior and determined foe.”

In his account of the battle in his book, he relates how it took hours to get permission for artillery to respond to the ambush.

Read the rest of this entry »

I was skimming through the various stories about the late President Bush the First this week, especially one about how he and Barbara were so considerate of and beloved by the Security Service agents who guarded them. It was kind of sweet, the account of a peckish agent going through the White House kitchen in the wee hours, looking for the cookies that he knew that the stewards of the kitchen had baked for the next day … and being joined by Bush the First, in ransacking the kitchen in search of the elusive cookies. That Bush the First and Barbara were loved and respected by the agents whose mission I can attest to at second hand. One of the Air Force security service NCOs I served with in Korea had just come off an assignment at the White House protection detachment. He adored Barbara, BTW – to hear him tell it, he was one of her favorite agents. She called him “Timmy”, which was kind of cute, as he was one of these six-foot-something guys and built like a concrete traffic bollard; probably Barbara was the only one aside from his mother who called him by that name. Read the rest of this entry »

Dan Bongino is a former Secret Service agent who is prominent commentator on Fox News.

His presentation at the David Horowitz meeting is worth watching.

He has a book out and I have ordered it on Kindle.

He also says that he thinks Bill Priestep is working with the people investigating this scandal.

The link at Conservative Tree House has some additional suggestions.

One of the key points Bongino highlights is how none of the paper-trail; nothing about the substance of the conspiracy; can possibly surface until *after* Robert Mueller is no longer in the picture. Until Robert Mueller is removed, none of this information can/will surface.

That’s why every political and media entity are desperate to protect Mueller; and also why Mueller’s investigation will never end.

This may well be true and it is depressing.

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I guess I thought they were all gone, those types of monsters, stranded on reels of black and white film.—Cara Ellison (blog no longer available), in a 2007 post about 9/11/01.

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.

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 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.

The Origins of Our Second Civil War by Victor Davis Hanson.

The first half of this VDH piece seems over-the-top. Would the intermarriage and cultural assimilation that he cites in his next-to-last paragraph be happening if the situation were as bad as he thinks? Or is the country mostly culturally sound but burdened with dysfunctional elites dominating politics, big business, the universities and the media.

This part is good:

Again, Obama most unfortunately redefined race as a white-versus-nonwhite binary, in an attempt to build a new coalition of progressives, on the unspoken assumption that the clingers were destined to slow irrelevance and with them their retrograde and obstructionist ideas. In other words, the Left could win most presidential elections of the future, as Obama did, by writing off the interior and hyping identity politics on the two coasts.
 
The Obama administration hinged on leveraging these sociocultural, political, and economic schisms even further. The split pitted constitutionalism and American exceptionalism and tradition on the one side versus globalist ecumenicalism and citizenry of the world on the other. Of course, older divides — big government, high taxes, redistributionist social-welfare schemes, and mandated equality of result versus limited government, low taxes, free-market individualism, and equality of opportunity — were replayed, but sharpened in these new racial, cultural, and economic landscapes.

The rest of the piece is also good and points out how the country’s situation might improve. “A steady 3 to 4 percent growth in annual GDP” doesn’t seem very far from where we are. University reform seems likely as the public increasingly catches on to the corruption and excessive costs of higher education. Race relations seem to improve when not politicized. Spiritual and religious reawakenings happen every few generations.

Keyboard trash talk and dark speculations about violence and civil war are not the same as actual violence. They might even be safety valves to release transient passions, cautionary tales, for everyone outside of a tiny lunatic minority. (The lunatic minority who are spurred to action by online/media hype are a serious problem, but not mainly a political one except as regards public and hence political unwillingness to force treatment on recalcitrant individuals with severe mental-health issues.)

Today’s political violence is a problem but not one at the level of 1968 much less 1861. Almost all of the action now is in the political realm. There is little reason to expect an intractable impasse on a fundamental issue as in 1850-60 over slavery. There is no substantial constituency favoring civil war as there was in 1861. The modern federal government is huge, profligate and obnoxious, but risk-averse deep-state bureaucrats and crony-capitalist opportunists aren’t going to take physical risks to defend the status quo. The political process still responds to public concerns about governmental overreach, which is probably a large part of why Trump was elected. There is also enough collective memory of the last civil war and its awfulness to discourage enthusiasm for a replay from anyone who is sane.

None of this is to say dire predictions won’t come to pass, but that’s not the way to bet. The country has been through harder times and surmounted them through politics rather than violence. My money’s on the basic soundness of our culture and political system this time as well.

I freely confess to having initially thought that when Donald Trump threw his hat into the political ring and began campaigning for election to the highest office in our fair land – it was a colossal joke and not one in particularly good taste. But I was never an adamant never-Trumper, and eventually came to think that hey – a wheeler-dealer Noo Yawk property developer (who after all HAD run a good-sized business enterprise for years) couldn’t possibly stuff up the job any more disastrously than He Who Dances With Teleprompters and his merry band of faculty lounge theorizers, career bureaucrats and second-gen beneficiaries of elite parental, fraternal or marital connections. In any case – I’d vote for practically anyone than Her Inevitableness the Dowager Empress of Chappaqua, even if I had to pin my nostrils shut with C-clamp. So – what the hell. Reader, I voted for him. I have to admit that when it sends rabid lefty celebs like Robert De Niro into a spittle-flecked rant on live television, I am tempted to rub my hands together and cackle with evil glee like Mr. Burns in the Simpsons, watching them come unglued with their hate for flyover country and those denizens of it which also voted for him. A man is known in a large part by the character and quantity of his enemies; Trumps’ are as numerous and as varied as any collection of grotesqueries in a Hieronymus Bosch painting.

So I started this post as yet another meditation on how ever-flipping-out-of-their minds the current iteration of Trump-haters are … and then the meeting in Singapore happened, and actually promises … maybe, if all goes well, a resolution to a war which started just before I was born, in a country to which my father was stationed as an Army draftee when I was born, in which I served for a year (three and a half decades later) and in which my daughter might very well have drawn duty in her turn. The Korean War – bloody and vicious, as we are reminded through M*A*S*H reruns – ended in an armistice and a heavily-armed border which slices the Korean peninsula into halves. Not anywhere equal halves, other than geographical.
Read the rest of this entry »

So help me dog, I was never able to figure the appeal of B. Obama, either when he first hove onto the political scene, or when he was elected, and reelected. He seemed to me, from the first and at a distance to be just a pleasantly and superficially-cultured nullity, with the not-uncommon ability to deliver inspiring, soaring speeches from words put in front of him, just like any A- or B-list actor I could name. He looked good, sounded good … and that was all there was to him, as far as concrete accomplishments went. Again, like any good actor – he looked the part that he was supposed to play, no matter that the actual legislative resume was vanishingly thin of substantive accomplishments.
Perhaps that was all that was required of him, that he look and sound the part. And what does that make of the sense and sensibility of those who voted for him, cheered him on enthusiastically, the establishment media who rolled his Juggernaut over the finish line, and supported him in eight years of trying his best to turn the United States into some nasty South American socialist dump, ruled in turns by a coterie of the elite, and their ambitious throne-sniffers? David Brooks, the token conservative at the National Paper of Record, got all thrilled and man-crushy, adoring the perfect crease of Obama’s trousers. This may live in infamy as the shallowest, stupidest thing that our Miss Brooksie has ever written, against considerable competition. Read the rest of this entry »

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.

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.

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.

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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 »

(In the light of the Cambridge Analytica revelations and controversy. I thought this 2014 post might be due for a rerun)

There has been much discussion recently of Catalist, a database system being used by the Democratic Party to optimally target their electioneering efforts…see Jonathan’s post here.  I’m reminded of Eugene Burdick’s 1964 novel, The 480.  The book’s premise is that a group within the Republican party acquires the services of a computing company called  Simulation Enterprises, intending to apply the latest technology and social sciences research in order to get their candidate elected.  These party insiders have been inspired by the earlier work of the 1960 Kennedy campaign with a company called Simulmatics.

Simulmatics was a real company.  It was founded by MIT professor Ithiel de Sola Pool, a pioneer in the application of computer technology to social science research. Data from 130,000 interviews was categorized into 480 demographic groups, and an IBM 704 computer was used to process this data and predict the likely effects of various alternative political tactics.  One question the company was asked to address by the 1960 Democratic campaign, in the person of Robert F Kennedy, was:  How best to deal with religion?  There was considerable concern among some parts of the electorate about the prospect of choosing a Catholic as President.  Would the JFK campaign do better by minimizing attention to this issue, or would they do better by addressing it directly and condemning as bigots those who would let Kennedy’s faith affect their vote?

Simulmatics concluded that “Kennedy today has lost the bulk of the votes he would lose if the election campaign were to be embittered by the issue of anti-Catholicism.  The simulation shows that there has already been a serious defection from Kennedy by Protestant voters. Under these circumstances, it makes no sense to brush the religious issue under the rug.  Kennedy has already suffered the disadvantages of the issue even though it is not embittered now–and without receiving compensating advantages inherent in it.”  Quantitatively, the study predicted that Kennedy’s direct addressing of the religion issue would move eleven states, totaling 122 electoral votes, away from the Kennedy camp–but would pull six states, worth 132 electoral votes, into the Democratic column.

It is not clear how much this study influenced actual campaign decision-making…but less than three weeks after RFK received the Simulmatics report, JFK talked about faith before a gathering of ministers in Houston.  “I believe in an America where religious intolerance will someday end,”  Kennedy said,  “where there is no Catholic vote, no anti-Catholic vote, no bloc voting of any kind.” (Burdick’s novel also suggests that the Kennedy campaign used Simulmatics to assess the effects of a more-forthright posture on civil rights by the campaign, and furthermore to analyze Kennedy’s optimal personality projection during the debates–I don’t know if these assertions are historically correct, but the religion analysis clearly was indeed performed.)

Considerable excitement was generated when, after the election, the Simulmatics project became publicly known.  A Harper’s Magazine article referred to to the Simulmatics computer as “the people machine,” and quoted Dr Harold Lasswell of Yale as saying, “This is the A-bomb of the social sciences.  The breakthrough here is comparable to what happened at Stagg Field.”  But Pierre Salinger, speaking for the Kennedy campaign, asserted that “We did not use the machine.”  (Salinger’s statement is called out as a lie in the recent book, The Victory Lab: The Secret Science of Winning Campaigns.)

In Burdick’s novel, the prospective Republican candidate is John Thatch, head of an international engineering and construction company.  Thatch has achieved popular renown after courageously defusing a confrontation between Indians and Pakistanis over a bridge his company was building, thereby averting a probable war.  Something about Thatch’s personality has struck the public imagination, and–despite his lack of political experience–he looks to be an attractive candidate.  But initially, the Republicans see little hope of defeating the incumbent Kennedy–“the incumbent is surrounded by over four years of honorific words and rituals,” a psychologist explains.  “He seems as though he ought to be President.  He assumes the mantle.”  This outlook is deeply disturbing to a Republican senior statesman named Bookbinder, who strongly believes that defacto 8-year terms are bad for the country…but if it is true that Kennedy is unbeatable, then the best the Republicans can hope to do is lose as well as possible.  Things change when Kennedy is assassinated and the election becomes a real contest.

Bookbinder and Levi, another Republican senior statesman, are introduced to Simulation Enterprises by a young lawyer named Madison (Mad) Curver and his psychologist associate (quoted above), a woman named Dr Devlin.  Mad and Dr Devlin explain that what Sim Enterprises does is different from the work done by garden-variety pollsters like the one they have just met, Dr Cotter:

“The pollster taps only a small fragment of the subject’s mind, attention, background, family influence, and habits.  The Simulations thing, just because it can consider thousands of elements influencing the subject, even things he may not know himself, gets much better results.”

“And one further thing, Book,” Mad said.  “Simulations Enterprises can predict what people will do in a situation which they have never heard of before.  That was the whole point of the UN in the Midwest example.  No one has gone out there and asked them to vote on whether we should get out of the UN, but Dev outlined a procedure by which you can predict how they will react…if they ever do have to vote on it.

Again Bookbinder had the sharp sense of unreality.  Unreal people were being asked invented questions and a result came out on green, white-lined paper…and when you got around to the real people six months later with the real question they would act the way the computer had said they would.

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For me, the very first – although not the most momentous disappointment in the accumulated collection racked up throughout the Obama administration – was the realization that there would be no line drawn under the old bug-bear of racism with regard to those of us – as a friend of mine during my assignment to Greenland in the early 1980s put it – with the year-round dark tan. Yes, said friend was black, Afro-American, a person of color, or whatever the approved term is these days. (You kids, get off my lawn! Oh … I don’t have a lawn.) My friend was a totally middle-class young woman, the daughter of professionals, who like me, had grown up without ever personally observing much in-your-face unmistakable racial antagonism or prejudice. It was merely something that had happened to other people, a fair number of decades ago; at worst howlingly illegal, at best, rude. We were in the habit of walking together every Saturday, around the end of the Sondrestrom AB runway to the Danish side of the base, there to enjoy a cup of tea and a pastry in the SAS air terminal cafeteria. Read the rest of this entry »

Iran was once an ally of the US and Israel. That ended in 1979 with the revolution led by the Ayatollah Khomeini. Since then, the Iranians have declared that we are at war. In 1979, during the revolution, they took members of the US embassy staff and the Marine Guards hostage.

The immediate cause of this action was President Jimmy Carter’s decision to allow Iran’s deposed Shah, a pro-Western autocrat who had been expelled from his country some months before, to come to the United States for cancer treatment. However, the hostage-taking was about more than the Shah’s medical care: it was a dramatic way for the student revolutionaries to declare a break with Iran’s past and an end to American interference in its affairs.

That article is typical leftist revisionism. The hostage takers were “students” only as an expression of their age. They were typical “student radicals” seen in most countries undergoing such violent upheavals.

Carter attempted a hostage rescue which was botched although the military people did their best. The US had no joint forces history and the mission was spread between Army, Air Force and Navy, none of which had worked together before.

The hostage crisis ended the day Reagan was inaugurated as president and was probably a sign that the Mullahs saw that he would not be played as they had played Carter.

Now, we have another uprising but this is directed at the regime.

A wave of spontaneous protests over Iran’s weak economy swept into Tehran on Saturday, with college students and others chanting against the government just hours after hard-liners held their own rally in support of the Islamic Republic’s clerical establishment.

The protests in the Iranian capital, as well as U.S. President Donald Trump tweeting about them, raised the stakes. It also apparently forced state television to break its silence, acknowledging it hadn’t reported on them on orders from security officials.

The 2009 protests became violent but Obama offered no support.

CNN tries to spin it but Obama was silent as Iranians were brutalized and killed.

What is different now ? One, Trump is president. Recently he has recognized Jerusalem as Israel’s capital and decided to move the embassy there.

There have been many complaints and protests, mostly in the US but he has persisted. This is in stark contrast to prior presidents who were all talk, or no talk, and no action.

In addition, Obama’s shameful deal with the Iranian mullahs may have destabilized the regime as the rulers greedily gathered in the billions sent by Obama and did nothing for the people. Obama might have, totally inadvertently, destabilized the regime he was trying to support.

Maybe this is the opening round in regime change.

David Goldman has discussed Iran’s Syrian quagmire.

The Iranian regime is ready to sacrifice the most urgent needs of its internal economy in favor of its ambitions in Syria. Iran cut development spending to just one-third of the intended level as state income lagged forecasts during the three quarters ending last December, according to the country’s central bank. Iran sold US$29 billion of crude during the period, up from $25 billion the comparable period last year. The government revenues from oil of US$11 billion (655 trillion rials) were just 70% of official forecasts, and tax revenues of US$17.2 billion came in 15% below expectations.

Chaos in Iran’s financial system prevents the Iranian government from carrying a larger budget deficit.

It appears that the Obama payoff with billions of cash has been quickly absorbed by the corrupt regime and its mullahs, which may explain the revolt currently underway. We await developments.

On Twitter:

The emoluments suits represent an attack by the elite, master word-smiths, who claim a monopoly on all the positions of state, against a public who, from time-to-time, elects people who don’t live in the world of words and texts. Instead, these people make things and do deals.

Also: Tales of the Unexplained. From Plaintiff’s Opp’n to the DOJ’s motion to dismiss in the DDC emoluments case. see page 34 n.24: /1

Investor’s Business Daily:

Preliminary data from the 2017 tax season are in, and they’re shocking. Not only does it look like the working class bore the brunt of ObamaCare individual mandate penalties this year, but people with relatively modest incomes apparently paid a lot more than the Congressional Budget Office anticipated.
 
[. . .]
 
The 2017 tax data offer new evidence that there’s much to be gained by moving away from the individual mandate and much to lose by sticking with it. Tax returns that had been processed as of April 27 included 4 million that paid ObamaCare fines (officially known as individual shared responsibility payments), with an average payment of $708.
 
What is striking about the data is that the average payment is barely higher than the minimum payment of $695. Since people were required to pay the greater of $695 or 2.5% of taxable income above the filing threshold ($10,350 in 2017), one takeaway is that most of the $2.8 billion in fines paid through April appear to have come from people with modest to moderate incomes. As a frame of reference, CBO’s 2014 analysis implied that the average mandate payment for this tax season would be roughly $1,075 and that the total amount paid by people earning up to three times the poverty level would barely exceed $1 billion.

There is much more interesting information in the article. Worth reading in full.

Since Trump was elected it seems that anyone I’m speaking with who wants to bring politics into a conversation, and who doesn’t know me well, and who (I’m guessing) doesn’t like Trump, will make a remark about “these days” or “the situation” or something along those lines, and expect to continue (or not) the conversation in a political direction based on my response. At least that’s how it seems to me in my purplish part of the country. I don’t react when this happens. There may be a brief pause in the conversation. We continue with our nonpolitical topic or move on to another one.

I’d bet that many of the readers of this blog have had similar experiences. My question is whether this type of experience is the inverse of what politically left-of-center people experienced when Obama was president. Is it?

Discuss.

Here’s a video of Egyptian leader Gamal Abdel Nasser reacting to a Muslim Brotherhood demand that women be required to wear head coverings.  Nasser and his listeners are quite amused that anyone would propose such an idea in the modern year of 1958.  The video reminded me of this post from March 2014…

Barack Obama and John Kerry have been ceaselessly lecturing Vlad Putin to the effect that: grabbing territory from other countries just isn’t the sort of thing one does in this twenty-first century, old boy.

For example, here’s Obama: “…because you’re bigger and stronger taking a piece of the country – that is not how international law and international norms are observed in the 21st century.”

And John Kerry:  “It’s really 19th century behavior in the twenty-first century. You just don’t invade another country on phony pretexts in order to assert your interests.”

The idea that the mere passage of time has some automatic magical effect on national behavior…on human behavior…is simplistic, and more than a little odd.  I don’t know how much history Obama and Kerry actually studied during their college years, but 100 years ago..in early 1914…there were many, many people convinced that a major war could not happen…because we were now in the twentieth century, with international trade and with railroads and steamships and telegraph networks and electric lights and all. And just 25 years after that, quite a few people refused to believe that concentration camps devoted to systematic murder could exist in the advanced mid-20th century, in the heart of Europe.

Especially simplistic is the idea that, because there had been no military territory-grabs by first-rank powers for a long time, that the era of such territory-grabs was over. George Eliot neatly disposed of this idea many years ago, in a passage in her novel Silas Marner:

The sense of security more frequently springs from habit than from conviction, and for this reason it often subsists after such a change in the conditions as might have been expected to suggest alarm. The lapse of time during which a given event has not happened is, in this logic of habit, constantly alleged as a reason why the event should never happen, even when the lapse of time is precisely the added condition which makes the event imminent.

Or, as Mark Steyn put it much more recently:

‘Stability’ is a surface illusion, like a frozen river: underneath, the currents are moving, and to the casual observer the ice looks equally ‘stable’ whether there’s a foot of it or just two inches. There is no status quo in world affairs: ‘stability’ is a fancy term to dignify laziness and complacency as sophistication.

Obama also frequently refers to the Cold War, and argues that it is in the past. But the pursuit of force-based territorial gain by nations long predates the Cold War, and it has not always had much to do with economic rationality. The medieval baron with designs on his neighbor’s land didn’t necessarily care about improving his own standard of living, let alone that of his peasants–what he was after, in many cases, was mainly the ego charge of being top dog.

Human nature was not repealed by the existence of steam engines and electricity in 1914…nor even by the broad Western acceptance of Christianity in that year…nor is it repealed in 2014 by computers and the Internet or by sermons about “multiculturalism” and bumper stickers calling for “coexistence.”

American Digest just linked a very interesting analysis of the famous “long telegram” sent by George Kennan in 1947: George Kennan, Vladimir Putin, and the Appetites of Men. In this document, Kennan argued that Soviet behavior must be understood not only through the prism of Communist ideology, but also in terms of the desire of leaders to establish and maintain personal power.

Regarding the current Russian/Crimean situation, the author of the linked article (Tod Worner) says:

In the current crisis, many will quibble about the historical, geopolitical complexities surrounding the relationship between Russia, Ukraine and Crimea. They will debate whether Crimea’s former inclusion in the Russian Empire or Crimea’s restive Russian population justifies secession especially with a strong Russian hand involved. Papers will be written. Conferences will be convened. Experts will be consulted. Perhaps these are all prudent and thoughtful notions to consider and actions to undertake. Perhaps.

But perhaps we should, like George Kennan, return to the same questions we have been asking about human nature since the beginning of time. Maybe we are, at times, overthinking things. Perhaps we would do well to step back and consider something more fundamental, something more base, something more reliable than the calculus of geopolitics and ideology…Perhaps we ignore the simple math that is often before our very eyes. May we open our eyes to the appetites of men.

In the aftermath of Pres. Trump’s cruise missile strike on a Syrian air field used to deliver chemical weapons of mass destruction on Islamist Syrian rebels, it is both a useful and needful thing to revisit my Sept 9, 2013 post on the policy choices Pres. Obama faced then.

Choices that Pres. Trump must now address in convincing a cynical and war weary American people that Syria is indeed a massive threat to American security — and especially individual freedom — at home.

See link:

Obama, US Military Victory, and the Real “Red Line” in Syria

This blog post made the argument that America had the military means to overthrow the Assad regime with an air-sea military campaign using air-laid sea and land mines, but that “Bush Derangement syndrome” on weapons of mass destruction made it impossible for American political elites in 2013 to take action.

The following is the close from that blog post that outlined the choices Pres. Obama flinched from in 2013 and Pres. Trump now faces with the American public:

The choice that the Obama Administration faces is that nothing America does or doesn’t do will change Syria from being a terrorist supporting, failed, 3rd World state. The choice at hand is what kind of terrorist supporting state our inaction or intervention will create, and the wider consequences of that choice, especially for American freedom at home.
 
Doing nothing means we will have a Iranian/Russian/Chinese supported WMD using Syrian terror state that harbors Iranian Nuclear, Chemical and Bioweapons production facilities.
 
Acting to depose Assad means we will have an ethnic cleansing, al-Qaeda supporting, economically & politically irrational terrorist state that hates Iran and the Syrian Alawites who staffed Iran’s WMD facilities.
 
The first is an existential threat to American freedom, the second is a manageable local problem for Israel and the Turks.
 
A wide ranging break-out of WMD across the world means they will be much more readily available to terrorist organizations. The tighter surveillance and security steps the American state will need to implement in order to address that threat at home will reduce the economic vitality of the American people as the national security state crowds out more and more freedom as the cost of “security.” Leaving us all very much where Benjamin Franklin predicted…neither having or deserving either.
 
It will take principled and competent American political leadership to persuade the American people to face these facts.
 
I don’t expect it to happen.
 
Our current American political elites won’t cross the “BDS Red Line” that American public elected Pres. Obama for anytime soon. Obama’s election and actions since were in accordance with the expressed will of the American people. Only horrible events, like British Prime Minister Nevile Chamberlain’s “Peace in our time” conference selling out Czechoslovakia swiftly followed by Hitler’s repudiation of it, will let the American people hear and see reality on the other side of the “Red Line.”
 
However, the first step down the road of invoking competent & principled American leadership is laying down a rhetorical marker against the day that WMD proliferation forces the American public to listen
 
This is the marker:
 
“It’s American Freedom at Home, STUPID!”
 
‘Nuff said.

The best place to fight WMD using terrorists is overseas with the military, not at home with emergency first responders in chemical warfare slime suits cleaning up the bodies after a WMD strike.

The Bush administration refused for numerous reasons to defend its policy choices or provide known intelligence on weapons of mass destruction in Iraq, allowing Senate Democratic leaders Reid, Pelosi and eventually Pres. Obama to destroy all federal government credibility on the subject.

Pres. Obama when faced with the same issue flinched from crossing his self-made WMD “RED LINE.

We will now see if President Trump is better at communicating with the American people past the “Bush Derangement Syndrome” based WMD RED LINE than Pres. Obama was.

Since it was first announced almost a decade ago I’ve followed the “nuclear renaissance” that Obama touted and noted that it would likely end in failure due to the poor economics of these projects given our current, failed regulatory climate. The Federal government provided loans to get some of these projects off the ground. Now, with the bankruptcy of Toshiba’s Westinghouse unit, the whole process is collapsing and leaving half-built reactors and rate payers (and investors) in many jurisdictions likely to hold the bag for huge investments that aren’t going to generate power any time soon.

Toshiba Corp’s U.S. nuclear unit Westinghouse filed for Chapter 11 protection from creditors on Wednesday, just three months after huge cost overruns were flagged, as the Japanese parent seeks to limit losses that threaten its future. Bankruptcy will allow Pittsburgh-based Westinghouse, once central to Toshiba’s diversification push, to renegotiate or even break its construction contracts, though the utilities that own the projects could seek damages. It could even pave the way for a sale of all or part of the business. For Toshiba, the aim is to fence off soaring liabilities and keep the group afloat.

These partially built reactors in Georgia and South Carolina were commissioned because local laws and regulations allowed for the costs of these investments to be passed on to the rate payer (local folks paying electric bills). In other states with different sorts of regulatory models, these sorts of investments would have been uneconomic, which is the primary reason why everyone else in the USA balked at the nuclear renaissance, even when it was partially underwritten by the Federal government with loans.

There are now two problems for rate-payers in Georgia and South Carolina:

1) the companies now have to build these reactors without price guarantee from Toshiba, meaning that the (likely) giant costs of the overruns will be borne by local ratepayers or the companies themselves. If the unit is in bankruptcy and walled off from the funds of the parent corporation (which is the purpose of the bankruptcy, I am assuming), it seems unlikely that anyone else would step up and backstop such a guarantee.

2) this bankruptcy is likely to cause significant delays in construction, meaning that the long, miserable process of getting certified to start up the reactor is going to be pushed out further into the future. This means that it will be that much longer until the unit starts generating power and “earns back” the investment, and all the costs of the reactors will accrue interest and financing charges for that much longer while construction proceeds (rate payers)

Note that there is precedent for taking gigantic write downs and abandoning abandoned reactors. Here is a link to the abandoned reactors in Washington and the famous Shoreham debacle in New York.

None of this seems to be impacting the stock prices of Southern Company (SO) and Scana (SGC) this morning so maybe the market knows something that I don’t. Scana is holding a press conference to describe their next steps in the process today and I didn’t seen anything yet scheduled on Southern Company’s web site.

Cross posted at LITGM

The current partisan war over the Dodd-Frank Act is just one dispute in a broader ideological divide about the government’s role in industry. This dispute, which has deep historical roots, includes a similar battle over Obamacare. The common disagreement at issue with both laws — now in the cross hairs of a GOP-controlled Washington — is the extent to which politicians should subsidize their constituents indirectly through regulation of private companies.

The Affordable Care Act governing health insurers was about 1,000 pages, and Dodd-Frank governing most other financial institutions was more than twice that. Both stopped short of nationalizing their respective industry, instead generating more than 10 pages of regulation for every one page of legislation, although many view nationalization as an eventual but inevitable consequence, particularly for health care.

The distinction between public control and public ownership is the primary distinction between the competing mid-20th-century ideologies of fascism and communism. In contemporary terminology, this distinction is between crony capitalism and nationalization, neither of which can be reconciled with competition and freedom of choice.
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