Monday, July 20, 2015

SOMETHING TO THINK ABOUT !!!

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When you vote for an incumbent you are perpetuating our government as it is now.

Nothing will change.
3 short sentences, you may find interesting.
These three, short sentences tell you a lot about the direction of our current government and cultural environment:
1.) We are advised NOT to judge ALL Muslims by the actions of a few lunatics, but we are encouraged to judge ALL gun owners by the actions of a few lunatics.
Funny how that works. And here's another one worth considering.
2.) Seems we constantly hear about how Social Security is going to run out of money.
How come we never hear about welfare or food stamps running out of money?  What's interesting is the first group "worked for" their money, but the second didn't.
Think about it..... Last but not least:
3.) Why are we cutting benefits for our veterans, no pay raises for our military and cutting our army to a level lower than before WWII, but we are not stopping payments to illegal aliens such as monthly payments for each child, money for housing, Food Stamps, free education including college and also the right to vote?
Am I the only one missing something?

FORMULA FOR INCREASING UNEMPLOYMENT - INCREASE THE MINIMUM WAGE !!!

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Sorry, Paul Krugman, the minimum wage won’t magically cure poverty.
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 http://vlt.tc/20ip  
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 “In a National Bureau of Economic Research paper published last December, University of California-San Diego professors Jeffrey Clemens and Michael Wither found that increases in the minimum wage were responsible for 14 percent of the decline in the percent of the working-age population employed between 2006 and 2012. 
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Minimum-wage increases significantly reduced the probability of low-skill workers reaching the middle class. 
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Clemens and Wither looked at the change in the minimum wage across states that had different minimum-wage laws... 
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The professors found that a minimum wage increase substantially reduced employment. By the second year after the 7.25 minimum wage, the authors estimated that employment of low-skill workers had declined by 6 percentage points, or 8 percent more in states with the binding federal minimum wage than in states with a higher minimum wage.

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MORAL:  

IF YOU WANT TO REDUCE EMPLOYMENT, RAISE THE MINIMUM WAGE !!!
 

Sunday, July 19, 2015

THE NOBEL PEACE PRIZE IS A BIG JOKE

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A Nobel prize for an ignoble deal?

by Jeff Jacoby
The Boston Globe
July 19, 2015





MOMENTS AFTER it was announced that the United States and its allies had reached a nuclear deal with Iran, the drums began beating for a Nobel Peace Prize. Carl Bildt, the former Swedish prime minister, tweeted happily: "I think the work of the Nobel Committee ... this year just got much easier." On Wednesday, a director of the Stockholm International Peace Research Institute, an influential think tank with ties to the Nobel organization, recommended that the 2016 prize be awarded to Secretary of State John Kerry and Iranian Foreign Minister Mohammad Javad Zarif.

As soon as the Iran nuclear deal was announced, there were calls to award the Nobel Peace Prize to US Secretary of State John Kerry (left) and Iranian Foreign Minister Mohammad Javad Zarif.
The Vienna deal is a capitulation to one of the worst regimes on Earth. Far from requiring the Iranians to dismantle their illicit nuclear program, the accord leaves almost all of it intact. In exchange for little more than a promise to delay its development of nuclear warheads, Tehran is rewarded with $150 billion in sanctions relief and, within a few years, the lifting of the UN embargo on conventional weapons and missile sales. The Islamic Republic is the world's foremost state sponsor of terrorism, yet nothing in the agreement requires any change in its notorious behavior. And despite the regime's long record of treaty violations and deceit, the deal enables it to stall for almost a month before complying with a demand for access by inspectors — hardly the "anytime, anywhere, 24/7" inspections that the Obama administration had claimed it would insist on.
The White House wanted to sign a deal; Iran's rulers wanted to ensure their path to the bomb and nuclear legitimacy. Both got what they wanted. The consequences will be a nuclear arms race in the Middle East, more Iranian terrorism and subversion, and a greater likelihood of war.
A Nobel peace prize — for that?
It wouldn't be the first time.
The Obama/Kerry willingness to concede anything for a nuclear deal with Iran has been likened to Neville Chamberlain's infamous Munich agreement with Adolf Hitler in 1938. Then too shameless capitulation was hailed as a triumph of peacemaking and diplomacy. Chamberlain was cheered as a hero in the press and on the street, and he won a resounding vote of confidence in Parliament. He was widely nominated for the Nobel peace prize, including by a dozen members of the Swedish parliament. Who knows — he might have received it, had Hitler waited just a little longer before invading Czechoslovakia.
All too often the Nobel Committee has seen fit to bestow its prestigious honor on men who negotiated "peace" accords that ended up undermining peace. In 1973, the prize was awarded to Secretary of State Henry Kissinger and North Vietnam's Le Duc Tho, lead negotiators of the Paris Peace Accords that purported to end the Vietnam War. In reality the Accords paved the way for US withdrawal, effectively abandoning South Vietnam to defeat and brutal occupation by the communist North.

US Secretary of State Henry Kissinger and Le Duc Tho of North Vietnam were awarded the Nobel Peace Prize for negotiating the Paris "peace" accords that effectively abandoned South Vietnam to defeat and occupation by the communist regime in Hanoi.
The Locarno treaties of 1925, now largely forgotten, settled Germany's borders with Western Europe, and were extravagantly portrayed as guaranteeing that Germany would never again violate the peace. "France and Germany Ban War Forever," cheered The New York Times, and the Nobel Committee, intoxicated with the "spirit of Locarno," awarded peace prizes to the French, British, and German foreign ministers who negotiated the deal. Yet the treaties deliberately left Germany's eastern borders open to "revision." In essence, one Polish leader remarked bitterly, "Germany was officially asked to attack the east, in return for peace in the west." The promised peace was a mere bubble. The war Locarno facilitated would prove all too bloodily real.
The Nobel Peace Prize for the Oslo Accords — presented in 1994 to Yasser Arafat, Yitzhak Rabin, and Shimon Peres — was another blunder that looks even worse in retrospect. A peace prize for Arafat, an arch-terrorist and hatemonger who devoted his life to the destruction of peace? It was as contemptible a choice as the Nobel Committee has ever made. Of course, there's always next year.
(Jeff Jacoby is a columnist for The Boston Globe).

Wednesday, July 8, 2015

CASTRO CELEBRATED THE RESUMPTION OF DIPLOMATIC RELATIONS WITH THE U.S. BY ARRESTING 80 DISSIDENTS

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Cubans pay the price for Obama's 'engagement' with the Castros

by Jeff Jacoby
The Boston Globe
July 8, 2015



ON JULY 1, President Obama announced the formal resumption of diplomatic relations with Cuba, asserting confidently that "American engagement ... is the best way to advance our interests and support for democracy and human rights."
On July 5, the Communist regime in Havana delivered its customary response. It arrested more than 80 democratic dissidents, including at least 60 members of Ladies in White, a peaceful group of brave women who march weekly in support of husbands, fathers, and other relatives imprisoned in the Castros' jails. Many of those detained were hurt, some severely. One prominent human-rights activist, Antonio Rodiles, was sent to the hospital with a shattered nose; he had reportedly been handcuffed by security forces, then beaten for shouting "Long live freedom" and "Long live human rights."

There had been even more arrests and beatings in the days leading up to Obama's Rose Garden statement. Some 225 Cuban dissidents across the island were arrested the previous Sunday, with Ladies in White again prominent among those targeted. In fact, there have been police actions against Cuban democrats for 12 Sundays in a row — the government makes a point of going after dissidents as they walk to Mass or emerge from church holding photos of imprisoned loved ones.
Like most US advocates of normalizing relations with the only all-out dictatorship in the Western Hemisphere, Obama claims that warming up to the Castro regime is the most effective way to promote freedom and liberal reform in Cuba. When he announced last December that ties between Havana and Washington were going to be restored, the president declared that "we can do more to support the Cuban people and promote our values through engagement." Now, nearly seven months later, he reiterates "America's enduring support for universal values, like freedom of speech and assembly," and he insists that his administration "will not hesitate to speak out when we see actions that contradict those values."
No? Over the past seven months, life for Cuba's people has grown even more oppressive and unfree. Yet far from forthrightly condemning the brutality, Obama serenely counsels patience: "Nobody expects Cuba to be transformed overnight," he says.
There have been more than 3,000 political detentions on the island since last December, according to The Washington Post. The paper quotes Mario Felix Lleonart, a Cuban Baptist pastor who laments that he, like many, "had hoped, following the announcement about normalizing relations between the US and Cuba, that there would be a stop to — or at least a lessening of — the beatings" of dissidents. "We now know that what is happening is precisely the opposite."
The policy that Obama now embraces is also "precisely the opposite" of the one he feigned to uphold as a candidate for president.
Like opposing same-sex marriage and guaranteeing that Americans could keep their health plan if they liked it, Obama reversed course on normalizing relations with Cuba, which he was clear could only come after, not before, "significant steps towards democracy." Once upon a time, Obama maintained that there would be no American embassy in Havana until all of Cuba's political prisoners were free. Now he trumpets John Kerry's forthcoming trip to Havana "to proudly raise the American flag over our embassy once more," even as Cuba continues to lock up men and women for daring to seek the democratic liberties Americans take for granted.
The Obama administration is bestowing tremendous gifts on Cuba's rulers: diplomatic legitimation, a public-relations triumph, an influx of hard currency, and expanded influence in Washington. All this the Castros are getting in exchange for nothing: no elections, no free press, no end to beating of peaceful protesters, no justice for the many victims of Cuban totalitarianism.
"Castroism has won," mourned the Cuban dissident Yoanni Sanchez last winter, when Obama announced an end to America's principled policy on Cuba. If it wasn't obvious then, it is now.
(Jeff Jacoby is a columnist for The Boston Globe).
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Monday, July 6, 2015

THERE ARE LESSONS FOR AMERICA TO BE LEARNED FROM THE CRISIS IN GREECE

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Senator Bernie Sanders

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Bernie’s Greek Crisis Stance Points to America’s Entitlement Crisis

Americans have the luxury of viewing the drama surrounding the Greek vote to reject a European Union bailout of their bankrupt economy with some detachment. If Greece goes bankrupt, few American financial institutions are directly affected in even a minor way. The consequences for European unity and the future of the Euro currency are not unimportant to the global economy but, again, that is not something that will have immediate consequences for the United States. But the Greek crisis does teach us a lesson and we have Senator Bernie Sanders to thank for a reminder yesterday as to why Americans should not only care about what is going in Greece but should take a lesson from their folly.
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By endorsing the decision of a large majority of Greek voters to, in essence, keep spending without being compelled to pay their debts, the increasingly popular left-wing challenger to Hillary Clinton highlighted a basic difference between Democrats and Republicans about our own looming entitlement spending crisis heading into 2016.
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Let’s specify that Greece’s situation is not directly comparable to the ongoing debate as to how to stop adding to the national debt that has grown exponentially on President Obama’s watch, adding to the admittedly dismal records of most of his recent Republican and Democratic predecessors. Though some politicians, like Rep. Paul Ryan, have sought to highlight the impending fiscal catastrophe unless entitlement spending is reined in, common sense on this issue has been hard to find. Out-of-control spending is a bipartisan affliction, but Democrats have consistently sought to derail debates about how to cap entitlements into partisan rumbles in which Republicans are depicted as wishing to throw wheelchair-bound grandmothers over the cliff. The result is that we continue to spend money that we don’t have (or rather have borrowed from China) but to add to the problem by creating new entitlements such as ObamaCare subsidies that may have a noble purpose but have also massively expanded the scope of government spending and power.
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Americans are by nature an optimistic people, and many of us continue to think that we can grow or tax our way out of any problem we create. Growth is essential to the country’s future. But taxes that will depress an economy that continues to struggle despite an anemic recovery (while strengthening government) are not a sensible solution. While we can debate the right answers to the problem, what should not be in dispute is that Americans cannot afford to walk blindly into the future compiling debts that our children and grandchildren will be forced to pay. Nor can we continue to increase the burden of entitlement spending which ultimately compels the nation to sink further into debt.
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That is why the Greek fiasco is so instructive for America’s own political debates. As our John Steele Gordon explained here last week, in essence, Greek voters have decided that they want to have their cake and eat it too. Having compiled debts via massive spending on entitlements of various kinds that they couldn’t pay for, the Greeks demanded that the rest of Europe bail them out. However, when presented with a bill for this assistance in the form of economic reforms that compelled them to live within their means, they cried foul. In the Greek context, a much-needed austerity program is viewed not as a necessary corrective to irresponsible spending, but as a form of oppression being imposed on them by wicked Germans. Though it is 70 years since the end of the Second World War, the Greek people, like many others, have a right to view the Germans with skepticism. But this dispute has nothing to do with the crimes of a previous generation and everything do with the question of whether some Europeans will be forced to pay for the profligacy for others without the irresponsible parties having to change their ways.
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While our immediate situation isn’t quite so dire as that of Greece, Americans, too, continue to pile up debt while expecting others to pay. That happens in cities and states across the country where public employee contracts threaten to send municipalities into bankruptcy. And it is happening on the federal level as we continue to spend on a growing list of entitlements that cannot possibly be sustained in the future except with ruinous taxes that will cripple the economy.
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The response to this problem from liberal Democrats like Bernie Sanders is very much like that of the Greek voters who don’t think they should balance their national checkbook or to stop spending other people’s money to give themselves what they want. The left says keep spending, break up financial institutions, and tax the businesses and investors who provide the engine for growth in order to pay for an ever-expanding government.
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Though Sanders won’t be elected president next year, he is clearly in position to make a decent showing in some of the Democratic primaries. Consequently, he is pushing Hillary Clinton farther and farther to the left as she tries to compete with Sanders for the votes of Democrats who would probably prefer to nominate Senator Elizabeth Warren. That puts Clinton and other Democrats in a position where they will continue to be an impassible obstacle to the kind of entitlement reform the United States desperately needs no matter who wins the 2016 elections.
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Rather than merely observing the agony of Europe and Greece with bemused indifference, Americans should think seriously about our own future. We’re a long way from being Greece, but the principle remains the same. The shift to the left among Democrats is an ominous sign that the notion of fiscal accountability is one that is equally applicable to American politics as it is that of Greece. We ignore the willingness of Sanders and other liberals to demagoguery about Europe at our peril.
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Response to “Bernie’s Greek Crisis Stance Points to America’s Entitlement Crisis”

  1. S R LANGENTHAL says:
    There are at least two causes of the Greek crisis – one is spending and the other is the failure of the Greek taxation system. For many years I have been hearing from American businessmaen and tourists that when they made reservations at Greek hotels, or when they arrived to check in, they were given two prices – one price if they wanted to use a credit card and a second, much lower price, if they were willing to pay cash. The reason for this was obviously that cash payments were welcomed, even at luxury hotels, so that the payment of taxes could be avoided. Perhaps this was symtomatic of a tax collection failure throughout the Greek economy. Our so called entitlement problems are easily solved – for example, by raising the eligibility age for Social Security or raising the income cap on the application of the Social Security tax. Our problems are not a reflection of the Greek problems. Rather, we should be encouraged that we are on the right track.

Monday, June 29, 2015

AMERICA'S COMING WAR WITH RUSSIA

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Putin’s World: Why Russia’s Showdown with the West Will Worsen

By Vitaliy Katsenelson
I grew up hating America. I lived in the Soviet Union and was a child of the cold war. That hate went away in 1989, though, when the Berlin Wall fell and the cold war ended. By the time I left Russia in 1991, the year the Soviet Union collapsed, America was a country that Russians looked up to and wanted to emulate.
Twenty-three years later, a new version of cold war is back, though we Americans haven't realized it yet. But I am getting ahead of myself.
After Russia invaded Crimea and staged its referendum, I thought Vladimir Putin's foreign excursions were over. Taking back Crimea violated plenty of international laws, but let's be honest. Though major powers like the U.S. and Russia write the international laws, they are not really expected to abide by those laws if they find them not to be in their best interests. Those laws are for everyone else. I am not condoning such behavior, but I can clearly see how Russians could justify taking Crimea back - after all, it used to belong to Russia.
I was perplexed by how the Russian people could possibly support and not be outraged by Russia's invasion of Ukraine. But I live in Denver, and I read mostly U.S. and European newspapers. I wanted to see what was going on in Russia and Ukraine from the Russian perspective, so I went on a seven-day news diet: I watched only Russian TV - Channel One Russia, the state-owned broadcaster, which I hadn't seen in more than 20 years - and read Pravda, the Russian newspaper whose name means "Truth." Here is what I learned:
  • If Russia did not reclaim Crimea, once the new, illegitimate government came to power in Ukraine, the Russian navy would have been kicked out and the U.S. navy would have started using Crimean ports as navy bases. 
  • There are no Russian troops in Ukraine, nor were there ever any there. If any Russian soldiers were found there (and there were), those soldiers were on leave. They went to Ukraine to support their Russian brothers and sisters who are being abused by Ukrainian nationalists. (They may have borrowed a tank or two, or a highly specialized Russian-made missile system that is capable of shooting down planes, but for some reason those details are not mentioned much in the Russian media.) On November 12, NATO reported that Russian tanks had entered Ukraine. The Russian government vehemently denied it, blaming NATO for being anti-Russian.
  • Malaysia Airlines Flight MH17 was not downed by Russia or separatists. It was shot down by an air-to-air missile fired by Ukraine or a NATO plane engaged in military exercises in Ukraine at the time. The U.S. has the satellite imagery but is afraid of the truth and chooses not to share it with the world.
  • Ukraine was destabilized by the U.S., which spent $5 billion on this project. As proof, TV news showed a video of Senator John McCain giving a speech to antigovernment protesters in Kiev's Maidan Square. It was followed by a video of Vice President Joe Biden visiting Ukraine during the tumult. I wasn't sure what his role was, but it was implied that he had something to do with the unrest.
  • Speaking of Joe Biden, I learned that his son just joined the board of Ukraine's largest natural gas company, which will benefit significantly from a destabilized Ukraine.
  • Ukraine is a zoo of a country, deeply corrupt and overrun by Russian-haters and neo-Nazis (Banderovtsi - Ukrainian nationalists who were responsible for killing Russians and Jews during World War II).
  • Candidates for the recent parliamentary election in Ukraine included Darth Vader (not kidding), as well as a gay ex-prostitute who claims to be a working man's man but lives in a multimillion-dollar mansion.
I have to confess, it is hard not to develop a lot of self-doubt about your previously held views when you watch Russian TV for a week. But then you have to remind yourself that Putin's Russia doesn't have a free press. The free press that briefly existed after the Soviet Union collapsed is gone - Putin killed it. The government controls most TV channels, radio and newspapers. What Russians see on TV, read in print and listen to on the radio is direct propaganda from the Kremlin.
Before I go further, let's visit the definition of propaganda with the help of the Oxford English Dictionary: "The systematic dissemination of information, especially in a biased or misleading way, in order to promote a political cause or point of view."
I always thought of the Internet as an unstoppable democratic force that would always let the truth slip out through the cracks in even the most determined wall of propaganda. I was wrong. After watching Russian TV, you would not want to read the Western press, because you'd be convinced it was lying. More important, Russian TV is so potent that you would not even want to watch anything else, because you would be convinced that you were in possession of indisputable facts.
Russian's propaganda works by forcing your right brain (the emotional one) to overpower your left brain (the logical one), while clogging all your logical filters. Here is an example: Russian TV shows footage of schools in eastern Ukraine bombed by the Ukrainian army. Anyone's heart would bleed, seeing these gruesome images. It is impossible not to feel hatred toward people who would perpetrate such an atrocity on their own population. It was explained to viewers that the Ukrainian army continued its offensive despite a cease-fire agreement.
Of course if you watched Ukrainian TV, you would have seen similar images of death and despair on the other side. In fact, if you read Ukrainian newspapers, you will learn that the Ukrainian army is fighting a well-armed army, not rebels with Molotovs and handguns, but an organized force fully armed by the Russian army.
What viewers were not shown was that the cease-fire had been broken before the fighting resumed. The fact that Putin helped to instigate this war was never mentioned. Facts are not something Russian TV is concerned about. As emotional images and a lot of disinformation pump up your right brain, it overpowers the left, which capitulates and stops questioning the information presented.
What I also learned is that you don't have to lie to lie. Let me give you an example. I could not figure out how the Russian media came up with the $5 billion that "America spent destabilizing Ukraine." But then I found a video of a U.S. undersecretary of State giving an 8.5-minute speech; at the 7.5-minute mark, she said, "Since Ukrainian independence in 1991 … [the U.S. has] invested more than $5 billion to help Ukraine." The $5 billion figure was correct. However, it was not given to Ukraine in three months to destabilize a democratically elected, corrupt pro-Russian government but over the course of 23 years. Yes, you don't have to lie to lie; you just have to omit important facts - something Russian TV is very good at.
Another example of a right-brain attack on the left brain is "the rise of neo-Nazism in Ukraine." Most lies are built around kernels of truth, and this one is no different. Ukraine was home to the Banderovtsi, Ukrainian nationalists who were responsible for killing tens of thousands of Jews and Russians during World War II.
Putin justified the invasion of Crimea by claiming that he was protecting the Russian population from neo-Nazis. Russian TV creates the impression that the whole of Ukraine is overrun by Nazis. As my father puts it, "Ukrainians who lived side by side with Russians did not just become Nazis overnight."
Though there may be some neo-Nazis in Ukraine, the current government is liberal and pro-Western. Svoboda - the party whose members are known for their neo-Nazi and anti-Semitic rhetoric - did not get even 5 percent of the votes in the October election, the minimum needed to gain a significant presence in parliament. Meanwhile the TV goes on showing images of Nazis killing Russians and Jews during World War II and drawing parallels between Nazi Germany and Ukraine today.
What also makes things more difficult in Russia is that, unlike Americans, who by default don't trust their politicians - yes, even their presidents - Russians still have the czarist mentality that idolizes its leaders. Stalin was able to cultivate this to an enormous degree - most Russians thought of him as a father figure. My father was 20 when Stalin died in 1953, and he told me that he, like everyone around him, cried.
I keep thinking about what Lord Acton said: "Power corrupts, and absolute power corrupts absolutely." The Putin we scorn today was not always like this; he did a lot of good things during his first term. The two that stand out the most are getting rid of the organized crime that was killing Russia and instituting a pro-business flat tax system. The amount of power Russians give their presidents, however, will, with time, change the blood flow to anyone's head. Come to think of it, even Mother Teresa would not have stood a chance in Russia.
A few weeks ago Putin turned 62, and thousands of people took to the streets to celebrate his birthday. (Most Americans, including this one, don't even know the month of Barack Obama's birthday.)
In my misspent youth, I took a marketing class at the University of Colorado. I remember very little from that class except this: For your message to be remembered, a consumer has to hear it at least six times. Putin's propaganda folks must have taken the same class, because Russian citizens get to hear how great their president is at least six times a day.
We Americans look at Putin and see an evil KGB guy who roams around the country without a shirt on. Russians are shown a very different picture. They see a hard-working president who cares deeply about them. Every news program dedicates at least one fifth of its airtime to showcasing Putin's greatness, not in your face but in subtle ways. A typical clip would have him meeting with a cabinet minister. The minister would give his report, and Putin, looking very serious indeed, would lecture the minister on what needed to be done. Putin is always candid, direct and tough with his ministers.
I've listened to a few of Putin's speeches, and I have to admit that his oratory skills are excellent, of a J.F.K. or Reagan caliber. He doesn't give a speech; he talks. His language is accessible and full of zingers. He is very calm and logical.
Russians look at the Putin presidency and ask themselves a very pragmatic question: Am I better off now, with him, than I was before he came into power? For most the answer is yes. What most Russians don't see is that oil prices over the past 14 years went from $14 to more than $100 a barrel. They are completely responsible for the revival of Russia's one-trick petrochemical economy. In other words, they should consider why their economy has done better the past decade, and why it may not do as well going forward. Unless Putin was the one who jump-started China's insatiable demand for oil and other commodities that drove prices higher, he has had very little to do with Russia's recent "prosperity."
I place prosperity in quotes because if you take oil and gas riches away from Russia (lower prices can do that with ease), it is in a worse place today than it was 14 years ago. High oil prices have ruined Russia. They have driven its currency up, making its other products less competitive in international markets. Also, capital gravitates toward higher returns; thus oil has sucked capital from other industries, hollowing out the economy. After the Soviet Union collapsed, Russia had a chance to broaden its economy; it had one of the most educated workforces in the world. Sadly, it squandered that opportunity. Name one noncommodity product that is exported from Russia. There aren't many; I can think only of vodka and military equipment.
But most Russians don't look at things that way. For most of them, their lives are better now: No more lines for toilet paper, and the stores are full of food. Their personal liberties (such as freedom of speech and freedom of the press) have been taken away from them, but many have so much trust in their president that they don't mind, whereas others are simply complacent.
Today we see three factors that influence oil prices and are working against Russia: Supply is going up with U.S. shale drilling; demand growth will likely decline if the Chinese economy continues to cool; and the dollar is getting stronger, not because the U.S. doing great but just because the rest of the world is doing worse. If oil prices continue to decline, this will expose the true state of the Russian economy.
When I visited Russia in 2008, I sensed an anti-American sentiment. NATO - which in Russia is perceived as a predominantly American entity - had expanded too close to Russian borders. Georgia tried to join NATO, but Russia put a quick end to that. Russians felt they extended a friendly hand to the U.S. after 9/11, but in response America was arraying missiles around its borders. (The U.S. says they are defensive, not offensive; Russians don't see the distinction. They are probably right.)
The true colors of this new cold war came to light recently. In August 2008, according to Henry Paulson, the U.S. Treasury secretary at the time, "top level" Russian officials approached the Chinese during the Olympics in Beijing and proposed "that together they might sell big chunks of their GSE [Fannie Mae and Freddie Mac] holdings to force the U.S. to use its emergency authorities to prop up these companies."
This incident took place just weeks before the collapse of Lehman Brothers. The U.S. economy was inches from revisiting the Stone Age. The proposed Russian-Chinese maneuver could have made such an outcome more likely. The Federal Reserve would have had to step in and buy Fannie's and Freddie's debt, and the dollar would have taken a dive, worsening the plunge in the U.S. economy. Our friend Putin wanted to bring the U.S. economy down without firing a single shot, just as he annexed Crimea from Ukraine.
Today anti-American sentiment is much greater in Russia. European sanctions are seen as entirely unjustified. Here is why: Crimea had a "democratic referendum," and the Ukrainian conflict is believed to be not of Russia's doing but rather an American attempt to destabilize Russia and bring Ukraine into NATO. In his annual speech at the Valdai conference last month, Putin said America had pushed an unwilling Europe into imposing sanctions on Russia. America is perceived as an imperialistic bully that, because of its economic and military power, puts its own self-interest above everyone else's, and international law.
Putin uses anti-Americanism as a shiny object to detract attention from the weak Russian economy and other internal problems. In the short run, sanctions provide a convenient excuse for the weakening Russian economy and declining ruble. They have boosted Putin's popularity (at least so far). As the Russian economy gets worse, anti-American sentiment will only rise.
This new version of the cold war has little in common with the one I grew up in. There are no ideological differences, and there is no arms race (at least not yet, and let's be honest: Today neither country can afford one, especially Russia). At the core of it, we don't like what Russia is doing to its neighbors, and Russia doesn't like what we do to the rest of the (non-EU) world.
The criticisms of U.S. foreign policy voiced by Putin in his latest Valdai speech are shared by many Americans: The U.S. is culpable in the unresolved, open-ended Afghanistan adventure; the Iraq War; the almost-bombing of Syria, which may have destabilized the region further; and the creation of the Islamic State, which is in large part a by-product of all of the above. Yet Putin's abominable Ukrainian excursion and the thousands of lives lost were never mentioned.
But there is also something less tangible that is influencing Russia's behavior: a bruised ego. During the good old Soviet Union days, Russia was a superpower. It mattered. When it spoke, the world listened. The Russian people had a great sense of pride in their Rodina (Mother Russia). Today, if Russia did not have nuclear weapons, we'd pay much less attention to it than we do. Pick a developing country without oil whose president you can name. (Okay, we Americans can't name the president of almost any other country, but you get the point.)
Anti-Americanism and Putin's popularity will both rise as the Russian economy weakens. For instance, Putin took his own people hostage when he imposed sanctions on imports of European food. The impact on Europe will not be significant (the Russian economy is not very large in comparison to the European Union), but Russia is very dependent on these imports. In the U.S. consumers spend about 13 percent of their earnings on food, but in Russia that number is almost three times larger. Therefore, food inflation hurts Russians much more. Yet as food inflation spiked, so did Putin's popularity and anti-Americanism. Even declining oil prices will be explained as a anti-Russian manipulation by the U.S.
Unfortunately, the only thing Russia has going for it today is its nuclear weapons. Russia has started to remind us of its military recently. According to NATO, the alliance "has conducted over 100 intercepts of Russian aircraft in 2014 to date, which is about three times more than were conducted in 2013."
Every article needs a conclusion, but this one doesn't have one. I am not sure what this new cold war means for the world. Will Russia start invading other neighboring countries? Will it test NATO resolve by invading Baltic countries that are part of NATO? I don't know. Economic instability will eventually lead to political crises. We have plenty of economic instability going on around the world.
I'll leave you with this thought: On March 7, 1936, the German army violated the Treaty of Versailles and entered into the Rhineland. Here is what Hitler later said:
"The forty-eight hours after the march into the Rhineland were the most nerve-racking in my life. If the French had then marched into the Rhineland, we would have had to withdraw with our tails between our legs, for the military resources at our disposal would have been wholly inadequate for even a moderate resistance."
Those two days determined what Germany would do next - build out its army and start World War II.
Comparing Putin with Hitler, as one of my Russian friends put it, is "absolutely abominable" because it diminishes Hitler's atrocities and overstates by a mile what Putin has accomplished to date. Yet it feels as if we are at a Putin-of-1936 moment. Will he turn into a Putin of 1939 and invade other countries? I don't know. But the events of the past nine months have shown Putin's willingness to defy international law and seize the advantage on the ground, betting - correctly so far - that the West won't call his bluff.
As Garry Kasparov put it, while the West is playing chess, responding tactically to each turn of events, Putin is playing high-stakes poker. We ignore Putin at our own peril.
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Vitaliy N. Katsenelson, CFA, is Chief Investment Officer at Investment Management Associates in Denver, Colo. He is the author of The Little Book of Sideways Markets (Wiley, December 2010). To receive Vitaliy’s future articles by email or read his articles click here.
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Tuesday, June 23, 2015

ONLY IDIOTS AND LIBERALS CAN MAKE A SYMBOL OF DEFEAT A THREAT, BUT THEN I REPEAT MYSELF !!!

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ON THE SOUTH AND HISTORY

The Transom
23 June 15

The media’s response to a crazed, disturbed racist who murdered peaceful God-fearing people in a church was not to embark on a conversation about the need for mental health reform. It was another national level pressure campaign to frame Republican politicians as racists depending on their attitude toward the Confederate battle flag flying over a memorial. Thankfully, Nikki Haley was up to the challenge of this moment. Her remarks yesterday about the people of South Carolina and about the flag itself were heartfelt and came from exactly the right place – I urge you to watch them here. http://vlt.tc/1z6p  She says a great deal here, managing to defend both the flag and those who are offended by it, in the process reminding us what this really is about: how a free people govern themselves.

South Carolina is a lovely state, and Charleston a wonderful port city, full of beautiful people. I grew up there and still consider it my home town. It is a town full of the history of war and revolution, Sumter low-slung on the horizon, cobblestone streets made from the ballast of ships that brought “Saxon steel and iron to her hands/and summer to her courts.” And the way I have heard this town and its people smeared in the past few months is astonishing to me. The reality is that the American South has tangled more openly and more seriously with the issue of race than any other part of the country. It has had its conversation, and has the blood and the symbols and the graves to show for it.

When national commentators with no connection to this place put themselves forward as self-made arbiters of when it can be considered civilized – they are already moving on to the question of how many boulevards may be named after Confederates – it reminds me that it is a good thing to know the history of where you came from and why you are here, and a terrible thing to forget it. Knowing where you came from helps you understand who you are. This is not always an easy thing. Often it is easier to pretend history never happened. But in the long run, forgetting is more dangerous to a free people.

Mollie Hemingway has more. http://vlt.tc/1z6o  “A lot of the outrage over the flag seems somewhat cold, given the horror of what last week brought. We had nine black people brutally murdered because they were black and sitting in a church with a history of fighting white supremacy. With all due deference to hatred for a Confederate flag on a pole at the statehouse, this seems like an almost childlike attempt to miss the seriousness of the situation. It’s as if they expect us to say, “Congratulations! You oppose the flag of an army that was defeated 150 years ago. We’re all very proud of you, journalists!” This generation seems to excel at inventing controversies, weighing in on those invented controversies, and then patting itself on the back for being so courageous and open-minded…

“[H]ow we manage these processes of disapproval truly is important for civil society. To quote Heinrich Heine, a man who definitely knew of what he spoke, “Where they have burned books, they will end in burning men.” Mobs aren’t actually the best judges of such processes, no matter how righteous they feel or certain of their cause. Listen, it’s great that we’re aiming to be an anti-racist society. That’s very, very good! But it’s bad that we are slowly forgetting how to dislike something without seeking its utter destruction. Somehow we’ve abandoned the aesthetic of Abraham Lincoln for that of Mao Tse-Tung.”





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- Benjamin Domenech


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Congratulations! You Oppose The Confederate Flag. Now What?

We are slowly forgetting how to oppose something without seeking its utter destruction.
Mollie Hemingway
By
ilEmail

The U.S. Civil War was a war that never should have been fought. Some 620,000 men died because slavery, an inhumane and evil practice, was permitted in many portions of this country. The South gets most of the blame for that, but the north benefited from the regime as well, even though it didn’t directly practice enslavement at the time of the war.
I used to think the war was a bit more complicated than I do now, having had my mind changed thanks to some relatively recent guided readings of President Abraham Lincoln. But long story short, the Confederacy was wrong. For whatever it’s worth, I have no nostalgia for the Confederacy and zero positive feelings for flags that reference the Confederacy, save the one painted on the General Lee or, perhaps, the one painted on RuPaul.
For some reason, 100% of media types (give or take) dealt with their feelings of anger and powerlessness in the aftermath of the racist murders of 9 black members of Emanuel AME Church in Charleston, South Carolina, by calling in unison for a removal of a Confederate flag from South Carolina’s capitol grounds. The flag was only put up during the centenary of the Civil War and a modified version was moved to a less conspicuous place about 15 years ago. Republican Gov. Nikki Haley called for its removal on Monday, as have many other politicians. Russell Moore of the Southern Baptist Convention called for its removal earlier. Sure, sounds good. Go for it. Even acknowledging that the relationship of the flag to the people of South Carolina is a bit more complicated than outsiders can understand, I think it’s fair to argue the negative outweighs any positive there.
A lot of the surrounding media-led outrage over the flag seems somewhat cold, given the horror of what last week brought. We had nine black people brutally murdered because they were black and sitting in a church with a history of fighting white supremacy. With all due deference to hatred for a Confederate flag on a pole at the statehouse, this seems like an almost childlike attempt to miss the seriousness of the situation. It’s as if they expect us to say, “Congratulations! You oppose the flag of an army that was defeated 150 years ago. We’re all very proud of you, journalists!” This generation seems to excel at inventing controversies, weighing in on those invented controversies, and then patting itself on the back for being so courageous and open-minded.
The far more frightening reality that such invented controversies avoid is that mankind is full of sin, and that some of us show that sinfulness in racism and murder. Or as Aleksandr Solzhenitsyn wrote in The Gulag Archipelago:
“If only it were all so simple! If only there were evil people somewhere insidiously committing evil deeds, and it were necessary only to separate them from the rest of us and destroy them. But the line dividing good and evil cuts through the heart of every human being. And who is willing to destroy a piece of his own heart?”
The murderer of the Emanuel nine has done something particularly bad, but he isn’t the only person capable of evil out there. And getting rid of a flag is hardly the remedy for the racism and violence that infects our culture. How juvenile to think otherwise.
Still, it’s routine now for the media to respond to tragic events with a call for more government control. It’s not just shown by responding to mass shootings with calls for gun control. Remember how, until all the facts got in the way, the media blamed a fatal Amtrak derailment on a lack of federal funding, of all things?
CNN actually went “heretic hunting” to call on businesses to ban any goods sold that in any way reference a Confederate symbol (which, of course, includes many state flags). Check out this piece headlined “First on CNN: Walmart to stop selling Confederate flag merchandise.” See, it’s first on CNN because CNN decided to trade journalism-ing for activism-ing:
Screen Shot 2015-06-22 at 10.10.20 PM
I mean, OK? Even this type of “Look! Squirrel!” avoidance of the actual tragedy of the Charleston terrorism was better than the naked political point scoring that was hard to distinguish from this fundraising email sent out by the Democratic Congressional Committee:


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Sunday, June 14, 2015

THE DANNEMORA PRISON BREAK IS NO SHAWSHANK REDEMPTION

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The Dannemora Dilemma

NOT many small American towns stick in your memory 10 years after you last drove through them. But New York’s Dannemora, site of last weekend’s remarkable prison break, is a vivid exception.
Dannemora is way up north — north of Albany, north of the Saratoga races, north of Lake George and Lake Placid, barely inside the northern border of the Adirondack Park. You drive through emptiness to get there, and what you find when you arrive is schizophrenic. Coming down the main street, to your left is a normal upstate town — the car dealer, the post office, the Stewart’s market, a lot of shingled storefronts in the shadow of mountains.
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But to your right, block after block, there’s just a prison wall — looming, pressing, dominating, like a glacier inching down from Canada, or something out of “Game of Thrones.”
I was there in high summer, and my first thought was “Siberia.” And “Little Siberia” turned out to be the prison’s nickname.
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Photo
The Clinton Correctional Facility in Dannemora, N.Y. Credit Nancie Battaglia for The New York Times
We’ve been debating criminal justice reform in earnest ever since Ferguson exploded last summer, with policing as the focal point. But our archipelago of prisons, the Dannemora-like places spread around the country, are as much the issue as any abuses by the police.
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All told, our prisons house around 2.2 million Americans, leaving the land of the free with the world’s highest incarceration rate. And they house them, often, in conditions that make a mockery of our supposed ban on “cruel and unusual” punishment: gang-dominated, rife with rape, ruled by disciplinary measures (particularly the use of solitary confinement) that meet a reasonable definition of torture.
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When Americans debate which feature of our contemporary life will look most morally scandalous in hindsight, the answers usually break down along left-right lines. But there’s increasing agreement across ideological lines — uniting conservative evangelicals and civil rights leaders, the Koch brothers and Eric Holder — that our prison system has become a particularly obvious moral stain.
This agreement has borne fruit: Amid a bipartisan, multistate push, the incarceration rate has fallen since 2007. And the crime rate has stayed low, at least till now, which has both helped the trend along (low crime rates mean fewer new prisoners) and sustained political space for pushing further.
The as-yet-unanswered question, though, is how far the push can go. And if the Siberian strangeness of Dannemora makes the case for reform, the escape there last week is a reminder of the dilemma for reformers.
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Richard Matt and David Sweat, the escapees, may have imitated Andy Dufresne in “The Shawshank Redemption.” But no sane person would root for them — both murderers, Matt a charismatic psychopath — to end up free and clear in Zihuatanejo.