Tag Archives: Barack Obama

Markets Deal With Scarcity, Left Screams “Price Gouging”

11 Monday Apr 2022

Posted by in Antitrust, Environmental Fascism, Oil Prices

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Democrats claim profiteering by oil companies is responsible for the sustained rise in oil prices since Joe Biden’s inauguration (really, his election). That’s among the more laughable attempts at gaslighting in recent memory, right up there with blaming market concentration for the sustained increase in inflation since Biden’s inauguration. At a hearing this week, congressional Democrats, frightened by the prospect of a beat-down just ahead in the mid-term elections, couldn’t resist making “price-gouging” accusations against oil producers. These pols stumble over their own contradictory talking points, insisting on more oil production only when they aren’t hastily sabotaging oil and gas output. Their dishonestly is galling, but so is the foolishness of voters who blindly accept the economic illiteracy issuing from that side of the aisle.

Break It Then Blame It

Those who level “price gouging” charges at oil companies are often the same people seeking to eliminate fossil fuel consumption by making those energy choices unaffordable. The latter is a bad look this close to mid-term elections, so they follow the playbook I described recently in “Break the Market, Blame It, Then Break It Some More“. And this post is instructive: “House Dem: Big Oil is profiteering by, er … doing what we demanded”.

Not only have the Democrats’ policies caused oil prices to soar; for many years they’ve been undermining the stability of the power grid via forced conversion into intermittent renewable energy sources like wind and solar, all while preventing the expansion of safe and carbon-free nuclear power generation. It’s ironic that these would-be industrial planners seem so eager to botch the job, though failure is all too typical of central planning. Just ask the Germans about their own hapless efforts at energy planning.

As economist Lawrence Summers, former Treasury Secretary under Barack Obama, said recently:

“Look, the net effect of the things the administration talks about in terms of micro policies to reduce inflation, this gouging talk is frivolous, nonserious, and utterly ineffectual. A gas price holiday would, ultimately, push up prices by raising demand. … The student loan relief … is injecting resources into the economy at a hundred billion dollar a year annual rate when the economy needs to be cooled off, not heated up. … The administration could be much more constructive than it has been with respect to energy supply.”

The market functions to allocate scarce resources. When conditions of scarcity become more acute, the market mechanism responds by pricing available supplies to both curtail use and incentivize delivery of additional quantities. That involves the processing of vast amounts of information, and it is a balancing at which the market performs extremely well relative to bumbling politicians and central planners, whose actions are too often at the root of acute scarcities.

Antitrust Nonsense

Of course, the Democrats have seized upon the inescapable fact that soaring oil prices cause profits to soar for anyone producing oil or holding stocks of oil. But oil company profits are notoriously volatile. Margins were negative for most of 2020, when demand weakened in the initial stages of the pandemic. And now, some companies are bracing for massive write-downs on abandoned drilling projects in Russia. The oil and gas business is certainly not known for high profit margins. Short-term profits, while they last, must be used to meet the physical or financial needs of the business.

The threats of antitrust action by the Biden Administration are an extension of the price-gouging narrative, even if the threat reflects an injudicious grasp of what it takes to prove collusion. It takes a fertile imagination to think western oil companies could successfully collude on pricing in a market dominated by the following players:

Fat chance. In any case, it’s a global market, and it’s impossible for western oil producers to dictate pricing. Even the OPEC cartel has been unable to dictate prices, not to mention keeping it’s members from violating production quotas. But if a successful conspiracy among oil companies to raise prices was possible, one would guess they’d have done it a lot sooner!

Nor is it possible for the oil majors to dictate prices at the pump, because retail prices are set independently. While the cost of crude oil is only about 54% of the cost of refined gas at retail, fluctuations in prices at the pump correlate strongly with crude oil prices. Here is a ten-year chart of daily price data, where the blue line is the price of West Texas Intermediate crude oil and the orange line is the average price of regular gas in the U.S.:

Here are the same two series for 2022 year-to-date:

Coerced Scarcity

Again, oil prices have been under upward pressure for over a year until a break in early March, following the steep run-up in the immediate wake of the Ukraine invasion. First there was Biden’s stultifying rhetoric, before and after the 2020 election, assisted by radical members of Congress. Then there were executive orders halting drilling on federal lands, killing the Keystone pipeline, efforts to shut down several other existing pipelines, and the imposition of regulatory penalties on drillers. In addition, unrest in certain parts of the Middle East curtailed production, compounded this year by the boycott on Russian oil (which, as a foreign policy matter, was far too late in coming).

However, existing facilities have been capable of squeezing out more oil and gas. Lo and behold, supply curves slope upward, even in the short-run! Despite all of Biden’s efforts to cripple domestic oil production, higher crude prices have brought forth some additional supplies. Biden’s raid on the Strategic Petroleum Reserve has also boosted supply for now, but its magnitude won’t help much, and it must be replaced for use during real U.S. national emergencies, which the war in Ukraine is not, as awful as it is.

That said, investing in new drilling capacity is not wise given the political climate created by Biden and the Democrats: they have been quite clear that they mean to crush the fossil fuel industry. For some time, the oil companies have been busy investing cash flows in “green” initiatives in an effort to bolster their ESG scores, a dubious exercise to say the least. Arguably, in this policy environment, the most responsible thing to do is to return some of the capital over which these firms are stewards to its rightful owners, many of whom are middle-class savers who hold oil stocks in their 401(k) funds. That approach is manifest in the recent stock buybacks and dividend payments oil companies have announced and defended before Congress.

Conclusion

A forced shutdown of fossil fuel energy was much ballyhooed by the Left as a part of Joe Biden’s agenda. Biden himself bought into the “Green New Deal”, imagining it might win him a vaunted place alongside FDR’s legacy in American history. The effort was unwise, but Biden is trying to hang onto the narrative and maintain his punitive measures against American oil companies. All the while, he begs OPEC producers to step up production, bending a knee to despots in countries such as Iran and Venezuela. Why, it’s as if their fossil fuels are somehow cleaner than those extracted in the U.S! The feeble Biden and congressional Democrats are proving just how mendacious they are. They can rightfully blame Vladimir Putin for the recent escalation in oil prices, but they bear much responsibility themselves for the burden of high gas prices, energy bills, and the unnecessary, ongoing scarcity victimizing the American public.

Full Blame for Monstrous Aggression On Putin

14 Monday Mar 2022

Posted by in Foreign Policy, Propaganda

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One would think condemnation of Vladimir Putin’s invasion of Ukraine would be easy for anyone who cares about human rights. This action and the threats he’s made against the West are the work of a psychotic. Yet there are some who place the ultimate blame for his behavior on the West and on NATO in particular. These reactions range from “This is all our fault” to “He’s evil, but we should not have provoked him”. Other reactions are much wilder, such as “We’re hiding something in Ukraine” to “We orchestrated this whole thing.” I am a small-government classical liberal, and no one trusts government power less than I do. However, I certainly place more trust in Western governments than in Russia’s authoritarian regime. If the West deserves any blame here, it’s because we made it easy for Putin.

Authoritarian Longings

For certain Western conservatives who’ve developed a man-crush on the “strong leader” Putin, the first thing you should understand is that he is an inveterate gangster and thug. Brute force fascism has always defined his approach to governance and foreign policy. That’s how this so-called “genius” came to power: three Russian apartment buildings were bombed in 1999, an act believed to have been instigated by the Russian Federal Security Service, of which he was head. Putin blamed Chechen rebels, prompting an attack on Chechnya that led to his ascendency.

Even among more moderate voices we hear statements like this:

“Russia has an existential interest in keeping NATO away from his border.”

Existential? “His” border? NATO may have expanded to include members from Eastern Europe, but that didn’t change its basic defensive posture nor the Putin regime’s expansionist goals. Objectively, it might have been more in Russia’s existential interest to be less belligerent and avoid the kind of rogue-state trap it’s now sprung on itself.

There are a few so-called leading intellectuals in the West who have condemned NATO eastward expansion as the root cause of Russia’s vengeful mind set, such as George Kennan and John Mearsheimer. However, Russian scholar Stephan Kotkin says they have it all backwards:

“The problem with their argument is that it assumes that, had nato not expanded, Russia wouldn’t be the same or very likely close to what it is today. What we have today in Russia is not some kind of surprise. It’s not some kind of deviation from a historical pattern. Way before nato existed—in the nineteenth century—Russia looked like this: it had an autocrat. It had repression. It had militarism. It had suspicion of foreigners and the West. This is a Russia that we know, and it’s not a Russia that arrived yesterday or in the nineteen-nineties. It’s not a response to the actions of the West. There are internal processes in Russia that account for where we are today.

I would even go further. I would say that nato expansion has put us in a better place to deal with this historical pattern in Russia that we’re seeing again today.”

Former NATO Secretary-General Anders Fogh Rasmussen agrees with that assessment, noting several early attempts at outreach to Russia:

“Russia is not a victim. We have reached out to Russia several times during history…. First, we approved the NATO Russia Founding Act in 1997…. Next time, it was in 2002, we reached out once again, established something very special, namely the NATO-Russia Council. And in 2010, we decided at a NATO-Russia summit that we would develop a strategic partnership between Russia and NATO.”

Nazis At the Kremlin

Putin contends that Ukraine must be “de-Nazified”, which is bizarre given the large Jewish population of Ukraine and its representation in leadership. Putin’s claim is also complete projection, as Melanie Willis has written:

“It is in fact Putin himself who has unleashed neo-Nazism on Ukraine using the Wagner Group. This is a private army of mercenaries financed by pro-Kremlin oligarchs. It’s led by Dmitry Utkin, a former Russian military intelligence officer sporting Waffen-SS tattoos who allegedly named his outfit after Hitler’s favourite composer.

Far-right extremists comprise the core of this group, which has committed horrific atrocities across Africa, the Middle East and Ukraine as a front for Russian imperial policy. …

The Russian Imperial Movement, which has fought in Ukraine, was designated a terrorist organisation by the US in 2020 for training and funding neo-Nazi terrorists across the world in its military camps, which operate under the Russian security services’ eye.”

Love Letters To Soviet Monsters

As if to emphasize his bona fides as a vicious authoritarian, Putin lionizes the failed Soviet empire, as if to forgive the horrors perpetrated by the communists: millions of lives lost to the engineered Ukrainian famine of the Holodomer genocide in the 1930s, the widespread raping of Russian, Polish, German women by members of the Red Army at the end of World War II, the millions confined to concentration camps over the entire Soviet era, and the repression, murder, or exile of many others. And this is to say nothing of the long economic nightmare inflicted by communist central planners, including the denial of property rights to ordinary people in the USSR and its satellite states.

Also recall that Putin’s army has made a practice of bombing civilian targets in separate conflicts starting with Chechnya in 1999, Georgia in 2008, and Syria in 2015. Cluster bombs and thermobaric weapons were used against residential areas in all three of these actions, the first two of which were Russian invasions of sovereign nations, and the third was on behalf of the Bashar Assad regime. It’s no surprise that we’re now seeing atrocities committed at Putin’s behest in Ukraine, and it could get far worse.

NATO: Not All About Russia

Another thing to understand: NATO’s original and ongoing purpose goes far beyond simply defending against Soviet and now Russian aggression. Claire Berlinski has a good post on this subject. She quotes “A Short History of NATO”:

“In fact, the Alliance’s creation was part of a broader effort to serve three purposes: deterring Soviet expansionism, forbidding the revival of nationalist militarism in Europe through a strong North American presence on the continent, and encouraging European political integration.”

Much of Europe was reduced to rubble after World War II, with many millions of soldiers and civilians dead. Homelessness and hunger were everywhere. Berlinski points to outbreaks of “militant nationalism” that plagued Europe in the wake of earlier crises.

“The enormity of the destruction transferred the responsibility for preserving Western civilization to the United States. …

Americans who resent Europeans for being reluctant to militarize and for placing so much importance on political integration should remember that this is the world we created. We insisted upon this. Europe had no choice. It’s very strange for Americans suddenly to view the United States’ greatest military and foreign policy achievement as a failure. It was the United States’ plan for Europe to focus on economic growth rather than maintaining large conventional armies …”

Indeed, this point was lost on Donald Trump. There is no question that European states should pay up to their commitments to NATO, and today more balance in those commitments is probably well-advised. However, as Berlinski notes, even when the Berlin Wall fell and the USSR dissolved, NATO’s role in ensuring European stability was still paramount. One might even say it ultimately required NATO expansion to the Eastern European states. And no, Russia was never promised that NATO would not expand to the east. That is a complete myth promoted by Putin and the Russian misinformation apparatus.

The rise of Russian belligerence over the past two decades meant that all three components of NATO’s original mission remained relevant. And through all that, NATO’s posture has remained defensive, not offensive. Yet many in the West have fallen for a continuing barrage of Russian propaganda and misinformation that the U.S. should withdraw from the alliance. On that, Berlinski says,

“It’s an idea very much like unilateral nuclear disarmament.”

The West Did Not Impede Putin

As a staunch Russian nationalist, Putin has always been butt-hurt about the fall of the USSR. And let’s not fool ourselves into thinking he hasn’t been coddled to a significant degree by the West, even as he grew bolder in his provocations and bullying. I already discussed NATO’s attempts to reach out to Putin before 2010. This article recounts, from a series of tweets by Kyle Becker, the subsequent course of affairs. Becker notes the following:

  • As Secretary of State under Barack Obama, Hillary Clinton approved the Uranium One deal giving Russia 20% of U.S. reserves.
  • In early 2010, the new START treaty left Russia with huge tactical nuclear advantages, and the agreement had very weak enforcement mechanisms.
  • Obama’s incredible hot-mic moment in 2012 caught him promising “more flexibility” to the Russians on ballistic missile defense after the November election.
  • The 2014 takeover of the Crimean Parliament and the subsequent rigged referendum to leave Ukraine was met with ineffective sanctions.
  • Missiles fired by pro-Russian forces took down a Malaysian Airlines flight over the Dunbas region in 2014. Earlier, Obama had denied Ukraine access to equipment that would have defended against anti-aircraft fire, and might have prevented the tragedy.

Even more recently, Joe Biden in January practically issued a pass to Russia on action against Ukraine: “It’s one thing if it’s a minor incursion…” Well then! Townhall’s Matt Vespa says:

“Russia is invading because they’ve been getting away with using brute force for years, coupled with an eight-year administration in the United States that did all it could to weaken everyone around them. Obama did nothing when Crimea was seized. He did nothing when Russians established themselves in the Middle East… For a solid decade, the use of force has worked, and Biden being Obama’s former VP, he sees a continuation of that weakness. Putin was right in that regard, gaming out the West’s response to a senile U.S. president. What he did not expect was the tenacity of the Ukrainian resistance.”

The Biolabs Pretext

What about those biolabs in the Ukraine? Putin’s propaganda machine went into high gear to characterize the labs as threats of biological warfare on Russia’s border. Many Western populists and conservatives thought this seemed like a rational pretext for Putin’s actions, but without a shred of proof. We really don’t know what’s happening there, but biolabs are not exactly uncommon, and the vast preponderance of biological and virological research is benign. The mere existence of those facilities is certainly not synonymous with “bio-weapons” research, as many have taken for granted. And, of course, a biolab in the West is likely to be engaged in bio-defense research as well. You can be sure, however, that Putin has contemplated the use of bio-weapons against Ukraine.

Conclusion

Vladimir Putin has made ominous threats against NATO countries, but if he didn’t have a huge stockpile of nuclear weapons he’d be merely a bad actor from a low-tier industrial society, and without the clout to frighten the entire world. His belligerence is long-standing and quite out-of-hand, and it is unlikely to stop with Ukraine should he succeed in crushing it. That seems to be his intent. NATO and the West did not do anything to justify Putin’s conspiratorial fantasies. In fact, the West coddled Putin for far too long, to our detriment and to the horror of the Ukrainian people.

I’m trying to maintain some optimism that Putin’s miscalculations in this invasion will eventually lead to Russian defeat. At the very least, it may be impossible for his occupying forces to maintain control without disastrous consequences to them. That might eventually lead to a withdrawal, much as it did in Afghanistan. Meanwhile, Western leaders still hope to find an “off-ramp” for Putin allowing him to save face and perhaps settle for small gains in the separatist regions. If so, I won’t be surprised to see repeat offenses from Putin in the future, either in Ukraine or elsewhere.

Not My President, Not Your’s Either

24 Thursday Dec 2020

Posted by in Censorship, Election Fraud, Leftism

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Now why would I say such a thing? Well, 1) the presidential election was rife with fraud, as many of us feared would be the case (and see here); 2) the supposed winner, Joe “The Plagiarist” Biden, is a figurehead, and he will remain in the White House only as long as he toes the line set down by the Left; and 3) the figurehead is badly compromised by Chinese and other foreign influence: Chairman Xi Jinping of the Chinese Communist Party (CCP) is undoubtedly pleased that such a pliant American president will be taking office.

Those who deny the fraud that took place in the election keep insisting “there’s no evidence!” In fact, there is ample evidence to convince any fair-minded person that massive fraud took place across a number of states (see here, here, here and here). We knew that massive adoption of mail-in ballots was an invitation to fraud. There are many hundreds of affidavits (yes, they constitute evidence) stating that Republican election officials and poll watchers were obstructed in their attempts to observe the counting process on and after Election Day, and worse. There is video evidence of activities coincident with late-night lockouts of Republican poll watchers and outrageous, instant jumps in Biden’s vote totals. There is definitive evidence of process “shortcuts” in several states that led to a large number of unverified ballots. These shortcuts were often taken in contravention of state law. There were failed chains of custody for thousands of ballots across several states. There were dead and out-of-state voters. There were irregularities associated with vote tabulations by Dominion machines. There are hand recounts in a few counties that demonstrate miscounting of ballots. And of course, there was a willful effort to suppress this information by the news media, and outright censorship of this information by social media platforms.

No matter what has or will happen in the courts, state legislatures, or Congress, a large share of the voting public believes there was fraud in this election. In fact, a significant share of democrats believe the election was stolen from President Trump! The fraud goes beyond the electoral process as well. Polls show a substantial number of Biden voters would not have voted for him had they known about the escapades of Hunter Biden and Joe’s role as the family cash cow. The mainstream media and social media platforms also deliberately suppressed the information about Hunter Biden’s pay-for-play scandal prior to the election. And that came after months of avoiding any real scrutiny of Biden’s policy agenda and his fitness as a candidate. Instead, the media asked Joe tough questions about his favorite ice cream.

Not your president? The Hunter Biden saga creates doubt about who Joe Biden is likely to serve as President. To whom is Joe beholden for “taking care” of “the big guy’s” family? How about Hunter’s deals in the Ukraine and Russia? How heavily was the CCP involved in Hunter’s business ventures? How much is Joe compromised by these unfortunate ties? What kind of compromises might it be worth to Joe to avoid further exposure? Should the Biden Administration overlook the plight of the Uhygers? Turn the cheek on Hong Kong? Sacrifice Taiwan? Allow Chinese technology to be embedded in U.S. communications hardware? Cede international rights in the South China Sea? Perhaps Joe will be Chairman Xi’s President. And perhaps others hold cards, such as the hostile Iranian regime. Not our president.

Finally, if you *think* you voted for Joe as president, be aware that he is, even now, a doddering figurehead, a puppet of the Left whose strings might well be clipped when he demonstrates even a hint of incapacity. It might not be long. Perhaps the Left will adopt Hunter’s imbroglio as an excuse to take Joe down. It seems more than a little suspicious that the media, post-election, has finally begun to talk about Hunter’s miscues and Joe’s “possible” involvement.

But even if Joe remains in the Oval Office through a first term, just who will be in charge? Joe? No, he is captive to the interests that helped put him there. We might just as well call him “Any-Way-the-Wind-Blows Joe”. Angela Davis, former VP of the Communist Party USA, said during the primaries that she supported Biden because he:

“… can be most effectively pressured into allowing more space for the evolving anti-racist movement.”

Well, Joe better not compromise with anyone or accept any policy that Angela Davis deems “racist”.

Let’s consider a few influences expected to be paramount in pulling Joe’s strings: Barack Obama, Alexandria Ocasio-Cortez, Julian Castro, and Black Lives Matter. Bernie Sanders will also loom large, and of course Kamala Harris will be there to push the leftist agenda, and she’ll be waiting in the wings when Joe loses his tentative grip on the reins of the progressive machine. Joe better not resist these forces: he can be manipulated, and if he strays from the path, he and his presidency can be cancelled.

If you are a member of the Marxist wing of the coalition, you might have him just where you want him. If you are a member of the CCP, then he might be your president. But he is not the president of the disenfranchised voters whose majority was outstripped by the mailed ballot fraud. And if you are a centrist Democrat, you should awaken to the reality of the hard-left movement with which you’ve joined forces. Do not accept it as a legitimate governing force. No, Joe Biden will not be your president.

As I’ve noted in the past, apologists willing to look past Joe Biden’s domestic and foreign controllers and the fraudulent election are not to be trusted. Indeed, they have been willing to look past Biden’s personal status as a fraud, from his many lies about his family to his admitted plagiarism, to his denial of sexual aggression toward female staffers. In summary, I can’t put it any better than Newt Gingrich does here:

“… I have no interest in legitimizing the father of a son who Chinese Communist Party members boast about buying. Nor do I have any interest in pretending that the current result is legitimate or honorable. It is simply the final stroke of a four-year establishment-media power grab. It has been perpetrated by people who have broken the law, cheated the country of information, and smeared those of us who believe in America over China, history over revisionism, and the liberal ideal of free expression over cancel culture.”

The Biden Family Influence Racket

31 Saturday Oct 2020

Posted by in Corruption, Politics

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If you’ve heard the Biden family’s long-time influence peddling racket is “fake news”, and you believe it, you’ve been manipulated. It’s certainly not a new story, in and of itself. There are certain mainstream media outlets that wouldn’t dream of reporting it now that not long ago were calling out the Bidens over this issue. It’s easy to be suspicious, given Hunter Biden’s lucrative association with the scandal-plagued Ukrainian energy firm Burisma. His contract with Burisma was executed around the time his dad Joe, the Vice President at the time, became heavily involved in President Obama’s diplomatic efforts in the Ukraine. Joe actually bragged publicly that he’d threatened to withhold U.S. loan guarantees unless a certain prosecutor was fired, a man who just happened to be investigating Burisma!

Then there were Hunter Biden’s manuevers in China, another country in which father Joe had been assigned as point man for the Obama Administration’s diplomatic efforts. The father and son travelled together, and it was well known that Hunter made a very profitable business deal with a billionaire owner of a Chinese energy firm, one with important connections to the Chinese Communist Part (CCP). Suspicious, to be sure.

But let’s review what’s happened more recently:

  • Earlier this month, the New York Post reported that the owner of a computer repair shop in Delaware came forward with a copy of a hard drive from a laptop. The owner claimed the laptop had been left with him by a besotted Hunter Biden in April 2019. Biden never picked it up, even after a reminder, so ownership of the laptop reverted to the shop. The owner said it contained compromising material on the Bidens.
  • The owner had turned over the laptop to the FBI almost a year ago because he feared that its possession might expose him to danger, given its contents. Apparently, the FBI did not follow up with him. This motivated the shop owner to go public with the help of Rudy Guiliani.
  • As disturbing as that may be, the larger story involves the trove of emails and texts on the laptop between Hunter Biden and his business associates. The messages indicate that Hunter Biden and his uncle, Jim Biden, were involved in a heavy influence peddling operation.
  • The materials offer fairly strong evidence that Joe Biden was a financial beneficiary of the deals cut by Hunter and his team. These are deals that would have compromised Joe Biden in his dealings with foreign nations, and in particular the Ukraine and China.
  • Subsequently, two of Hunter Biden’s business associates confirmed the authenticity of the controversial communications made public. One of them, an investor and ex-naval officer named Tony Bobulinski, was brought in by the Bidens as CEO of their partnership with the Chinese. Bobulinski says he met with Joe Biden twice regarding the Chinese business deal for which Hunter solicited his support, and he calls Joe Biden a liar. Bubolinsky has been interviewed by the FBI and has provided documents to the Senate Homeland Security Committee and the Senate Finance Committee.
  • Until a few days ago, no one in the Biden family, nor the Biden campaign, had denied that the laptop belonged to Hunter. But Joe Biden gave a blunt denial this week, saying of the whole story: “There is no controversy about my son. That’s a hell of a lie! That’s a flat lie because the president has nothing else to run on.” Alright Joe, so this whole thing is politically motivated. You might be right about the timing, but that certainly doesn’t vindicate your family of the corruption evident in these messages and the accounts offered by your son’s associates.
  • Now, there is documented proof of an earlier favor bestowed on the Chinese by Hunter Biden, his associates, and members of the Obama Administration, including Joe Biden. This was in 2011, when a group called the China Entrepreneur Club (CEC) arranged through Hunter’s associates to tour the White House and meet with Joe Biden and other officials. The group included CCP and Chinese government officials as well as influential Chinese businessmen. It also resulted in some lucrative deals for Hunter Biden and his partners. The purpose of the meetings was put thusly by a Hunter Biden contact who helped arrange it, as quoted at the last link: “… CEC’s ‘mandate’ was ‘to let the U.S. know that the Chinese “private sector” [scare quotes in original] is ready and willing to invest in America.’ He thus observed the opportunity to leverage government policy and lucrative business: Cultivating the CEC would be ‘a soft diplomacy play that could be very effective.’” Specific deals for Hunter Biden’s team were also discussed by the partners in connection with the CEC visit.

It’s no surprise that Joe Biden is a liar: his history as a plagiarist is well known. He also falsely claimed the truck driver involved in the accident that killed his first wife was driving drunk. But these recent revelations are pretty damning. As president, any dealings Joe Biden might have with the Chinese would be severely compromised. He sold out his country to build his family’s wealth. It’s also been disturbing to witness the media’s effort to provide cover for the Bidens. This is not the work of journalists; it’s the work of propagandists in the tank for a candidate.

Portents of Harris-Biden Nation

22 Thursday Oct 2020

Posted by in Politics

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Joe Biden is a weak figurehead, a one-time moderate faltering over a coalition of leftists. If you wonder why Nancy Pelosi floated legislation to establish a committee on “presidential capacity,” don’t think so much about her loathing for Donald Trump; think about poor Joe Biden. He might be shunted aside just as soon as the power grab isn’t too obvious. They know well how Barack Obama famously said, “Don’t underestimate Joe’s ability to f*ck things up.” But whether Joe Biden is in control of anything, think about who he stands with:

The Violent Left: Marxist Antifa and Marxist BLM; opposed to law and order; burning cities; spewing eliminationist rhetoric; hissing n*g**r at black cops;

Police Defunders: won’t acknowledge good policing is needed more than ever, especially in minority communities;

“Ministers of Truth”: social media platforms exerting control over what we say and what we see;

Re-Educators: democrats push for a “Truth and Reconciliation Commission” to address the “issue” of Trump supporters;

Critical Race Theorists: a Marxist front whereby every word and action is viewed in the context of racial bias and victimization; they want reparations; on your knees.

The Scientistic: who labor under the delusion that “science” should guide all administrative and political decisions. Or someone’s version of science. The very idea is antithetical to the scientific domain, which deals only with falsifiable hypotheses. Few matters of value can be addressed using the tools of science exclusively, nor can they address matters of ethics.

Fear Mongers: would rule by precaution; risks are always worth exaggerating to existential proportions;

Lockdown Tyrants: refuse to acknowledge the steep public health costs of lockdowns; stripping individual liberties indefinitely, including the right to contract, free practice of religion, and assembly;

Insurrectionists: who fabricated a Russian collusion hoax to subvert the 2016 election, and later to overthrow a sitting president;

Gun Confiscators: they will if we let them;

Abortionists: would use federal tax dollars to fund the murder of millions of babies late into pregnancy, primarily black babies;

Fluid-Genderists: insist that children should be encouraged to explore transgenderism;

Taxers: won’t stop with punitive taxes on the wealthy and employers; it’s just not easy to milk high earners in a way that’s sufficient to pay for the fiscal debauchery demanded by the Biden-Harris constituency. Joe says he will raise taxes by $3.4 trillion.

Spenders: $2 trillion of new federal education outlays, including universal pre-K and free community college; the Green New Deal (see below). After all, the democrats are the party that can’t tell the difference between a cut in spending and a reduction in spending growth. If you think Trump is a big spender, their plans are astonishing;

Green New Dealers: would spend trillions to restrict energy choices, transfer U.S. wealth overseas in the name of international carbon reduction, and reduce our standard of living;

Redistributionists: would tax job creators not simply for the benefit of supporting the needy, but for anyone regardless of need (see UBI); this extends to plans to bail out blue states and cities with insolvent public employee pension funds;

Interventionists: would regulate all phases of life, including straws, sugary drinks, and your fireplace; they will burden private initiative; create artificial, politically-favored winners skilled at manipulating regulatory rules for competitive reasons; and create losers who are typically too small to handle the burden;

Medical Socialists: will strip your private health insurance, dictate the care you may receive, fix prices, and regulate physicians and other providers. You’ll love the care abroad, if you can afford to get out when your sick.

Public School Monopolists: poorly performing, beholden to teachers’ unions, unresponsive to taxpayers and often parents; they would happily revoke school choice;

Federal Suburb Rezoners: demanding low-income housing in every community;

Court Packers: to destroy the independent judiciary;

Iran Apologists: give them cash on the tarmac, let them develop their “peaceful” nuclear program; alienate the rest of the Middle East;

Grifters: marketing their influence as public servants for private gain; never exclusive to one side of the aisle, but the Biden family has certainly traded on Joe to enrich themselves;

Smear Merchants: fabricated allegations against Brett Kavanaugh; impugned Amy Coney Barrett’s religious faith;

Perverts: Harvey Weinstein, Anthony Weiner, Jeffrey Toobin, Hunter Biden, and Bill Clinton, to name just a few; even Joe has his #MeToo accusers;

I could go on and on, but Harris-Biden voters should get a strong taste of their compatriots from the list above. It reflects the overriding prescriptive, bullying, and sometimes violent nature of the Left. They’d have you think all material goods can be free. Presto! They presume to have the knowledge and wisdom to plan the economy and your life better than you, Better than free markets and free people. What they’ll need is a lot of magic, or it won’t go well. You’ll get poverty and tears. I’m not sure Joe has the desire or the wherewithal to rein in his coalition of idiots.

Joe’s “Boom”: Mendacity or Memory Loss?

06 Tuesday Oct 2020

Posted by in economic growth, Executive Authority

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Joe Biden has claimed that he and Barack Obama had left Donald Trump with a “booming” economy to start his term in office. Of course, if he had anything to do with economic performance during the Obama Administration, it may have been his oversight of the mismanaged and ineffective “shovel-ready” stimulus program of 2009, For his sake, one might hope (and suspect) his oversight was nominal. In any case, his characterization of the Obama economy is not really accurate, as this editorial at Issues and Insights demonstrates. I could argue with a few of their points, but the thrust of it is correct. The economy weakened in 2015 and 2016, and expectations were for continued slow growth or possibly a recession in 2017 or after. At that point, many economists thought the aging expansion might be on its last legs. But economic growth exceeded expectations after Trump took office. As for job growth, economists predicted relatively sluggish growth in 2017-2019, but actual job growth exceeded those projections by more than three times.

Finally, Biden’s assertion that “Trump caused the recession” was laughable, especially when the punchline is his willingness to “shut down the economy“! He insists “I would listen to the scientists”, presumably the same knuckleheads who don’t understand the public health tradeoffs between the pandemic itself and lockdown risks (and who don’t understand the Constitution). Biden might not understand that the President lacks constitutional powers to demand a nationwide shutdown. Trump was quite sensibly persuaded to leave non-pharmaceutical interventions in the hands of the private sector as well as state and local governments, with guidance from federal health authorities. That some state and local leaders instituted draconian policies, which were largely ineffective and often damaging. was and is a terrible misfortune. The more sensible approach is to  protect the most vulnerable and allow others to gauge their own risks, as we always have in earlier pandemics.

Nominate and Confirm

23 Wednesday Sep 2020

Posted by in Supreme Court

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Many on the left practically cheered the passing of Antonin Scalia in 2016, a reaction I witnessed with disgust on my own social media feeds. Now, we should all mourn the death of Ruth Bader Ginsburg, but some of the same people seem almost comically furious with her for “choosing such a bad time to die”, just 46 days before the presidential election! Or, for refusing to step down during the Obama administration, when she could have been replaced with a much more youthful lefty jurist.

Of course, the Left is also furious that President Trump plans to nominate a candidate for Ginsburg’s vacancy on the Court, and that Republican leadership in the Senate plans to bring the nomination to a vote, perhaps before November 3rd.

Trump and the GOP majority are entitled to do that under the Constitution, and they should. Senator Ted Cruz explained the primary reason:

“Democrats and Joe Biden have made clear they intend to challenge this election. They intend to fight the legitimacy of the election. As you you know Hillary Clinton has told Joe Biden ‘under no circumstances should you concede, you should challenge this election.’ and we cannot have election day come and go with a 4-4 court. A 4-4 court that is equally divided cannot decide anything. And I think we risk a constitutional crisis if we do not have a nine-justice Supreme Court, particularly when there is such a risk of … a contested election.” 

This presidential election might be fraught with more procedural controversy than any before. The coronavirus, or its promoters in the media and the Democrat party, has spooked many voters into the belief that going to a polling place in-person on Election Day is too dangerous. This despite the fact that distancing and masks will be required, and the time it takes to complete a ballot does not require “prolonged exposure” to anyone. So now we face the prospect of mail-in balloting on an unprecedented scale, which is an invitation to manipulation and fraud. A couple of examples:

“… consider some of the suspect decisions already being made in various states that deliberately weaken ballot security. The Pennsylvania Supreme Court, for example, voted last week along party lines (the judges are elected) that county drop boxes, including unattended ones, could be used to collect votes. Gov. Tom Wolf, a Democrat, and his party supported the measure, which reached the court by lawsuits, thus avoiding GOP control of both legislative chambers. The decision obviously opens the door to potential fraud because ballots in unsecured drop boxes could be tampered with or stolen. 

New Jersey’s Democratic Gov. Phil Murphy also made some curious decisions. A Jersey friend sent me a mailer he received that was addressed only to ‘Residential Customer.’ Inside, a pamphlet from the county clerk in Bergen County said that a Murphy order ‘requires’ every county to mail a ballot to ‘every active registered voter.’ That raises the chances of thousands of unmarked ballots being stolen from the post office or front porches, practices not exactly unheard of in New Jersey.”

Already a number of lawsuits have been filed in various states over absentee ballots. There have been missed deadlines, disputes over whether certain candidates should appear on those ballots, invalidated pre-filled applications for ballots, and an incorrect mailer sent by the U.S. Postal Service to voters nationwide regarding absentee ballots. Let’s face it: for all the earlier denials by Democrats that the mail-in ballot process was not subject to gaming or fraud, neither side trusts the other. There will be many more disputes as ballots are counted before and after Election Day.

It’s reasonable to expect that a few cases might rise to the level of the U.S. Supreme Count before election tallies are final in some states, as in the Florida recount in the Bush vs. Gore election of 2000. A 4 – 4 tie on the Court would leave lower, state-court rulings in place that could decide the outcome of a federal election. That’s not how the process is intended to work. Needless to say, that’s another reason why Democrats oppose a Trump nominee prior to the election. There’s no doubt they’d push forward with their own nominee were the shoe on the other foot, however, just as Republicans opposed the confirmation of Merrick Garland in 2016.

So who’s a hypocrite? Republicans who said that they wouldn’t confirm or even conduct a confirmation process in an election year, as in 2016, certainly qualify (Lindsey Graham, among others). It must have seemed expedient to stay so at the time, but it was foolish. And Democrats who now protest after insisting in 2016 (and before) that a Supreme Court vacancy should be filled by the sitting president, even in an election year, also qualify (Chuck Schumer, Barack Obama, Hillary Clinton, and Joe Biden, among others). Here’s what some top progressive legal minds were saying in 2016: It’s a duty and obligation for the president to nominate and for the Senate to undertake a confirmation process!!

Here’s the key issue: The president has the authority to nominate Supreme Court justices any time during his term. If the Senate confirms, then a new justice is seated. If the Senate chooses not to confirm, the vacancy remains. That’s how it works. There have been 29 vacancies on the Court in election years, and in 22 of those cases the sitting president sent a nomination to the Senate. As Justice Ginsburg said in 2016:

“There’s nothing in the Constitution that says the president stops being the president in his last year.”

Her purported wish on her death bed, that her replacement would be chosen by a new president, was not hypocritical. It was a wish, not a legal opinion. It was just as “political” as the contradictory statements made by the politicians, however.

Ginsburg also said it’s the Senate’s job to take up a vote, which the Republicans refused to do in 2016. That was their prerogative, however, and the decision does not bind anyone in the current circumstance.

Mitch McConnell is right:

“In the last midterm election before Justice Scalia’s death in 2016, Americans elected a Republican Senate majority because we pledged to check and balance the last days of a lame-duck president’s second term. We kept our promise. Since the 1880s, no Senate has confirmed an opposite-party president’s Supreme Court nominee in a presidential election year. By contrast, Americans reelected our majority in 2016 and expanded it in 2018 because we pledged to work with President Trump and support his agenda, particularly his outstanding appointments to the federal judiciary. Once again, we will keep our promise. President Trump’s nominee will receive a vote on the floor of the United States Senate.”  

Democrats have promised to “pack the Court” by adding seats to the bench for new, ideologically-preferred justices if a Trump nominee is confirmed, among other threats. They should heed the caution of moderates who know how dangerous that may be. The mere threat gives Republicans reason to pack the Court themselves, when they can, which might be as soon as January. Moreover, nothing could do more to undermine confidence in the Court. RBG herself had the following to say about Court packing:

“Well, if anything, it would make the court appear partisan. It would be that one side saying, ‘when we’re in power, it was only to enlarge the number of judges so we will have more people who will vote the way we want them to…’ So I am not at all in favor of that solution to what I see as a temporary situation.”

Well, of course the Court is divided along certain ideological lines, and to some extent those differences break along dimensions of legal philosophy, such as originalism vs. a “living Constitution”, or judicial activism. That’s not to say that the Court is always partisan, however. The process of nominating and confirming justices should not be as partisan as it has become in the last 25 years (see the last link). Let’s not make it worse.

Trump will nominate an able jurist. Senators should meet and independently assess that individual’s legal qualifications and temperament. My expectation is they will vote to confirm, and I hope that vote takes place without rancor.

Note: Thanks to the Washington Free Beacon for the wonderful meme at the top of this post.

TikTok Tax: The Heavy Wants a Cut

05 Wednesday Aug 2020

Posted by in Industrial Policy, Regulation, Trump Administration

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I have a certain ambivalence toward Donald Trump, and I could go on and on about why it’s so “complicated” for me. One thing for which I’ve credited the Trump Administration is its effort to “deconstruct the administrative state”, as Steve Bannon so aptly put it shortly after the 2016 election. Of course, the progress thus far hasn’t always lived up to my hopes, but the effort to deregulate continues. And after all, the regulatory state is deeply entrenched and difficult to uproot.

Then my eyes glazed over as Trump floated an idea so bad, an intervention so awful, that I can hardly gather it in! It has to do with TikTok, the Chinese video sharing service that has gained popularity worldwide. Crazy as this might sound, it’s not so much Trump’s threat to shut down TikTok’s U.S. operations. Like most libertarians, I’d find that appalling in and of itself, except for the legitimate data security issues at stake. The company’s ties to the Chinese Communist Party (CCP) are a national security concern and an ethical blot on the company, given the CCP’s brutal treatment of Muslim Uighurs, its roughshod treatment of Hong Kong, and its threats to Taiwan. In any case, at least Trump said he’s amenable to a sale of the company’s U.S. operations to a domestic firm. Several large tech firms have expressed strong interest, including Microsoft. So, while any government imposed shutdown or forced sale makes me squirm, it’s not my main issue here.

What really stunned me was to hear Trump say the U.S. Treasury must get a cut of the deal! This is “Hall-of-Fame” statism. Where in the hell does the U.S. government get a legitimate financial claim to the value of any private business that changes hands? Well, Trump seems to think the federal government is adding value as the heavy:

“But if you buy [TicTok], the United States, which is making it possible to buy, because without us they can’t do anything, should be compensated.”

Yes, the buyer would be the beneficiary of a shakedown, and the demand is another poke in the eye to the Chinese. Of course, it might well threaten the transaction, and I’m not even sure it’s in Trump’s interest politically. But that’s not even the worst of it: as Warren Meyer explains, it would be hard to think of a better way to weaponize financial regulation than having the Treasury at the bargaining table in private negotiations for corporate control:

“Already there are too many regulatory hurdles to doing about anything, and Trump wants agencies to use regulatory approvals to hold up corporations for payments. And you can be sure this is a precedent the Democrats will be only too happy to latch onto — want a pipeline built, where’s our vig? Who wants [this to be] the first Trump decision AOC comes out in support of? The Republican Party sure has come a long way in my lifetime.”

The Left would certainly love to exercise this kind of coercion as a revenue source, as a cudgel of industrial policy to wield against disfavored firms and industries, and as a way to favor cronies. It’s a ready extension of Barack Obama’s deranged “You-didn’t-build-that” theme.

Is this one of trade advisor Peter Navarro‘s brainstorms? I was relieved to see Trump economic advisor Larry Kudlow cast some doubt on whether the government would follow through on Trump’s idea:

“‘I don’t know if that’s a key stipulation. …. A lot of options here,’ Kudlow told ‘Varney & Co.’ on Tuesday. ‘Not sure it’s a specific concept that will be followed through.’“

I think Trump would really like to kill TikTok. Maybe his grudge is driven in part by the presumptive role that TikTok played in his under-attended Tulsa rally. But there are domestic competitors to TikTok, so consumers will have alternatives. The most popular of those seems to be another Chinese app called Likee. In any case, downloads of other video sharing apps have spiked over the past few weeks. If Trump’s real aim is simply to shut down TikTok in the U.S., I’d almost rather see him do that than start making a practice of horse trading with cronies over shares of corporate booty.

Not Obama’s Economy

01 Sunday Mar 2020

Posted by in economic growth, Macroeconomics

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The “Trump economy” hasn’t been half bad, though one can’t attribute all of the results to the economic policies of his administration. In fact, the economy was growing when he took office, though it took several years after the Great Recession to recover under Barack Obama, and various sectors were showing strains before Trump took office. And yes, Obama inherited a very bad economy, but he went off the rails a few weeks ago in a pathetic attempt to take credit for ten-plus years of economic growth. Here is one of his tweets:

“Eleven years ago today, near the bottom of the worst recession in generations, I signed the Recovery Act, paving the way for more than a decade of economic growth and the longest streak of job creation in American history,”

The tweet was immediately ridiculed by Trump, as is his habit, but at best Obama received lukewarm support from his usually adoring media outlets. How interesting, however, that just a few days before Obama’s tweet, Chuck Jones, a regular Forbes contributor who really needn’t prove he’s an Obama hack, submitted a scorecard of economic performance covering President Trump’s first three years in office. It was an exercise in throwing shade at a series of good numbers. Then, a week later, Jones had the chutzpah to claim the Obama’s “shovel-ready” stimulus program of a decade ago, which proved anemic in its effects, was the proximate cause of healthy growth under Trump’s watch. Who gave him that idea?

Jones’ effort to diminish Trump’s economic accomplishments is music to the ears of leftists wistful for the days of Obama. They fancy Jones’ appearance in what they assume to be a right-leaning outlet as an enhancement to the credibility of his claims. Forbes, however, is certainly not the bastion of conservatism the Left would have you believe. Their model pays contributors who drive circulation, which has little to do with political alignment. To the extent that Jones is able to stroke the predilections of the Left, he probably can play well at that game.

The truth is it’s difficult to attribute variations in economic growth to different presidential administrations. This fairly well-balanced piece at NPR.org gives one very simple reason:

“Let’s stipulate that presidents of both parties often get more credit and blame for economic conditions than they deserve, given that much of what happens is outside their control.”

It is true that a new administration inherits economic conditions and policies from its predecessor. Trump inherited an economy that was growing, but there were plenty of strains, including sluggish wage growth, low labor force participation, weak business startups, and a languid housing sector, as this link makes clear. Moreover, economic expansions have lasted an average of only about five years in the post-WW2 era. The current expansion was about 90 months running at the time of Trump’s inauguration, a stage at which vulnerabilities might develop. But new policies often lead to new economic realities. In Trump’s case, that included tax cuts, and especially corporate tax cuts that spurred hiring and wage growth, and more liberalized regulation. Accommodative monetary policy by the Federal Reserve also provided an assist. As the chart at the top shows, Trump’s platform lifted small business enthusiasm considerably, which is a broad indicator of economic vibrancy. Of course, his trade initiatives have probably had negative effects thus far, but his way of negotiating new trade agreements might well end up making a positive contribution, on balance.

Now, the danger of a caronavirus pandemic is presenting major economic challenges. It’s unlikely to produce as many deaths as a bad flu season in the U.S., in part because the Trump Administration took quick action to limit domestic exposure. Nevertheless, the economic consequences of the virus and attempts to control its spread will be significant. At least the economy was strong when the shock occurred, so it is reasonable to expect a rebound if the outbreak runs its course over the next month or two.

The economic record since Trump took office has been impressive given the stage of the business cycle at which he took office. Not only that, but minority wage growth has surged, and minority unemployment has fallen substantially. Let’s face it: Obama and Joe Biden are eager to neutralize any plaudits a strong economy might earn Trump in an election year, but they shouldn’t embarrass themselves by trying to take credit for it, and Chuck Jones could do better than carrying their water.

 

 

Bernie Sanders and the Brutal Bros

24 Friday Jan 2020

Posted by in Collectivism, Leftism, Tyranny, Uncategorized

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Some of Bernie Sanders’ most devoted fans have an unfortunate brutalitarian streak. The violent strain of so-called Bernie Bros aren’t as isolated as one might hope. First, of course, there was James Hodgkinson, the BB who attempted to assassinate Republican members of Congress at a congressional baseball game practice, seriously injuring Rep. Steve Scalise. Now, campaign field organizers for Sanders in Iowa and South Carolina have been captured on film proposing gulags, re-education camps, sentencing billionaires to hard labor, and shooting or beheading those opposed to Sanders’ policies. And much more. And they say this in all seriousness. What nice people have been assigned positions of responsibility within the Sanders campaign organization! Watch it for yourself at the link above.

Should we be surprised? No: these are advocates of forced collectivism, and if their favorable perspective on coercive power wasn’t enough of a tip-off, recent history suggests that many among them are truly ready and willing to do violence. The brutal and murderous history of collectivist regimes the world over demonstrates the tendency well enough. Stalin, Mao, Pol Pot, Castro and too many other leftist tyrants left bodies strewn in their wake as they sought to enforce their ideology. It’s no coincidence that the American Left holds the murderous Che Guevara in such high esteem. Black Lives Matter and Antifa have both perpetrated violent acts, and members of the Leftist media have openly advocated physical attacks on their political opponents. And then we have these Bernie Bros.

I feel compelled to review a bit of background on Bernie Sanders, the batty old communist who has managed to convince large numbers of poorly educated “intellectuals” that he knows the path to utopia. The nicer ones imagine that he’s a man of the people, though he hasn’t worked a day in his life at anything except agitation and rent seeking. He is an inveterate public mooch. His life history as a politician and as a person is rather unflattering.

I’ve used this Iowahawk (David Burge) quote about Sanders before:

“Who better to get America back to work than a guy who was actually fired from a Vermont hippie commune for being too lazy.”

Apparently, Barack Obama is not a Bernie Bro:

“Obama has told people in private that Sanders is both temperamentally and politically unfit to beat Trump in the 2020 general election, these people say. Among his concerns are Sanders’ strident form of politics and confrontational manners where he was known not to seek compromise during his long years in the US senate.”

And say what you will about Hillary Clinton, but her opinion of Sanders comports with much of what we know about The Bern:

“He was in Congress for years. He had one senator support him. Nobody likes him, nobody wants to work with him, he got nothing done.”

At least the Bernie Bros have taken their masks off before getting too far. Give Leftists power and they all will.