Tuesday, June 30, 2009

Heading Towards A Massive Tax Increase


“Nothing is so well calculated to produce a death-like torpor in the country as an extended system of taxation and a great national debt.”

William Cobbett, English pamphleteer and journalist, February 10, 1804

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It would seem that what we are doing today is reinventing a very old wheel. We have the "great national debt," compliments of a left wing spending spree of astronomical proportions. Indeed, the level of debt and borrowing and the massive increase in the money supply is, to quote economist Arthur Laffer, "potentially far more inflationary than were the monetary policies of the 1970s, when the prime interest rate peaked at 21.5% and inflation peaked in the low double digits."

We are not on the road to economic recovery. Indeed, Bizzyblog documents that the Treasury is showing that federal tax receipts continue their steady decline, with yet another slump in June. Obama's Keynesian experiment in using massive government spending to make the economy grow is failing spectacularly. But Obama is clearly not going to forego any of his plans for ever more massive spending, making confiscatory new taxes inevitable.

As it stands today, no new taxes are in the cards for anyone who earns under $250,000 - unless of course they use tobacco, they use energy or purchase any good or service that requires energy, or they get non-union health care benefits. But even those proposed or already enacted taxes - which in the case of cap and trade will be massive - will not be enough to fund the grandiose socialist schemes of our Profligate Spender In Chief. So what will be the next to fall?

According to Roger Altman, Bill Clinton's Deputy Treasury Secretary, more taxation is inevitable and will likely come in the form of a VAT tax - driving up the cost of every good and service in our country in what amounts to highly regressive national sales tax. This from Mr. Altman writing in the WSJ:

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A Picture Is Worth A Thousand Words



Ramierez couldn't have summed it up any better. As I said in the post below, Obama's foreign policy is wholly dysfunctional. He is dangerous.

Masters Of Disaster Set To Strike Again - Will The Ricci Decision Stop Them


(Picture from Protein Wisdom)

Many of the same people who brought us the current economic collapse - the left generally, with Barney Frank, ACORN and Obama in particular - are at it again. Rather than fixing the problems they created over two decades, each are doubling down. Obama is planning to vastly exand the Community Reivestment Act. Barney Frank is pushing a new version of subprime lending on Fannie Mae. ACORN is out thugging the major mortgage brokers. But a speed bump may now be in their path. The Supreme Court decision in Ricci yesterday might actually be the tool that defangs the racially charged Community Reinvestment Act and curbs some its abuses by the Masters of Disaster.

Back when the housing mania was taking off, Massachusetts Congressman Barney Frank famously said he wanted Fannie Mae and Freddie Mac to "roll the dice" in the name of affordable housing. That didn't turn out so well, but Mr. Frank has since only accumulated more power. And now he is returning to the scene of the calamity -- with your money. He and New York Representative Anthony Weiner have sent a letter to the heads of Fannie and Freddie exhorting them to lower lending standards for condo buyers.

You read that right. After two years of telling us how lax lending standards drove up the market and led to loans that should never have been made, Mr. Frank wants Fannie and Freddie to take more risk in condo developments with high percentages of unsold units, high delinquency rates or high concentrations of ownership within the development. . . .

Fannie and Freddie have always been political creatures under the best circumstances. But we don't remember anyone electing Mr. Frank underwriter-in-chief of the United States.

Read the whole article. Frank is, I've long maintained, a clear and present danger to the United States.

ACORN, for its part, is out doing what it does best - strong-arming financial institutions. This from the American Spectator:

ACORN, which played a starring role in creating the subprime mortgage crisis, plans to add insult to injury by harassing lenders across the nation with protests tomorrow in an effort to coerce them into supporting President Obama's Making Home Affordable foreclosure-avoidance program.

Austin King, director of ACORN Financial Justice, sent out a press release today advising of the demonstrations that are planned as part of its "Homewrecker 4" campaign. The four financial companies targeted are Goldman Sachs, HomEq Servicing, American Home Mortgage, and OneWest. . . .

ACORN plans to hit Dallas, Pittsburgh, Philadelphia, St. Louis, New York City, Wilmington (Del.), Columbus (Ohio), Houston, Little Rock, Boston, Los Angeles, Miami, San Francisco, and Seattle.

But let's not forget that ACORN helped to cause the mortgage bubble by strongarming banks into making loans they shouldn't have. And cheering them on was ACORN's lawyer, Barack Obama, who contributed to the increasingly hostile environment for banks when he represented plaintiffs in the 1995 class action lawsuit Buycks-Roberson v. Citibank. The suit demanded that Citibank grant mortgages to an equal percentage of minority and non-minority mortgage applicants. The bank settled the case three years later and reportedly agreed to beef up its lending to unqualified applicants. . . .

But the worst of the worst is Obama and his plan to put the disasterous Community Reinvestment Act on steroids as part of his 89 page proposal for massive government intervention in our economy, “A New Foundation: Rebuilding Financial Supervision and Regulation.” The CRA uses an analysis precisely like that in a "disparate impact" claim under Title VII to determine whether financial institutions are making enough loans to minorities. As it stands now, banks cannot defend against a finding of insufficient loans to minorities under the CRA by pointing to their individual portfoloio to show that they have not engaged in discrimination, but rather have applied loan standards evenly and without reference to color. The government applies the CRA to require a racially balanced result.

You will recall that yesterday, the Supreme Court decided in Ricci that application of legitimate, race neutral criteria was what Title VII required and that it would be an unlawful act of racism for an institution to throw out the results of a test because it did not provide a racially balanced result. Though decided in the context of Title VII, Ricci provides a general principle of law that should be applicable to the misuse of the CRA by our government to engage in outcome oriented, social engineering. One can only hope that some attorney, somewhere, is polishing the Ricci decision and preparing to use it as the centerpiece against the CRA. That would go a long way to defanging Obama, Frank, and ACORN.







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Gov. Sanford & Iran's Supreme Guide Khameini


According to South Carolina's Governor for the moment, Mark Sanford, God wants him to finish out his term as governor. Somehow, I doubt that he got that message from a burning bush.

I find Gov. Sanford's invocation of God as supporting his decision to be substantially the same as Iran's mid-level cleric-cum-Supreme Guide Khameini invoking God as having supported the landslide reelection of Ahmedinejad. Both are making despicable use of religion to support the unsupportable. They claim divine intervention to color their obvious moral wrongs. Both are equally detestable and do harm to their respective religions by their actions.

The only difference between the two is that Khameini should be hung for the murder and repression he has ordered in the wake of his illegal acts. Sanford should be prosecuted for misuse of state funds. Beyond that, both will ultimately answer to a higher power whom I doubt will take a permissive view of their actions.






Obama - 180 Degrees of Wrong



Is Obama insane?







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Monday, June 29, 2009

Ricci - The Rest Of The Story

The Supreme Court, in deciding the case of Ricci v. Destefano yesterday, held that, while employers have a duty to make their hiring criteria racially neutral, once they have done that, they can't use race as a basis to disregard merit. This decision . . .

. . . should significantly impact those class of claims where no actual racism is shown but claims of racisim are made on the basis of statistics;

. . . will make it harder for plaintiffs to prevail in "disparate impact" claims and should significantly curb the practice of employers caving to the demands of race baiters;

. . . may well have an important effect in areas outside of employer-employee law where such statistical evaluations of race are used, such as in college admissions and, of critical importance, under the Community Reinvestment Act;

. . . marks a step towards answering whether and to what extent affirmative action is Constitutional under the Equal Protection Clause.

. . . looks bad for Sotomayor but will not by itself derail her nomination.

. . . the little publicized facts of Ricci are that vile race baiting and blatant reverse discrimination were the driving forces behind the City's decision to throw out the test results in that case. The claim of potential liability for disparate impact was a pretext.

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Supreme Court's Ricci Decision - Half A Loaf (Updated)

I just scanned the Supreme Court's decision in Ricci v. DeStafano, holding 5-4 for the firefighters. That was the case brought by 11 New Haven Connecticut firefighters who had all achieved top scores on a promotion test. The City threw out the test results because no blacks were among their number. The firefighters argued that this act was unlawful under Title VII and that it was unlawful under the Equal Protection Clause of the Constitution.

Unfortunately, the Court's decision was limited in scope. Instead of deciding the penultimate issue - that the Equal Protection clause means that all discrimination, including reverse discrimination, is unlawful - the Supreme Court opted to limit its holding to Title VII. The decision changes the law of Title VII disparite impact claims - i.e., claims established based on a purely statitstical analysis of whether a hiring criteria resulted in too few of whatever minority or gender were hired as a result. If my initial read is correct, the holdings effect is ultimately to lessen the evidentiary value of such statistical claims as proof of racism.

While the outcome of the case is good, and it certainly points in the direction of an ultimate holding that the Equal Protection clause means what it says, the fact is that four liberal justices would have held otherwise. We are but one activist justice away from an Obama Supreme Court given the racially tinged green light to reverse racism.

Much more on this after I have a chance to pull it apart.

Update: Heh. I missed this. Johnathan Adler at The Volokh Conspiracy points out that Justice Alito, in his concurring opinion, had a terse rebuke of the "empathy standard":

There's also some interesting language at the close of Justice Alito's concurrence (joined by Justices Thomas and Scalia) that I read as a subtle rebuke to Judge Sotomayor and the Second Circuit panel (which expressed sympathy to the firefighters in its per curiam opinion), as well as a rejection of an "empathy" standard for judicial decision-making.

. . . The dissent grants that petitioners’ situation is “unfortunate” and that they “understandably attract this Court’s sympathy.” Post, at 1, 39. But “sympathy” is not what petitioners have a right to demand. What they have a right to demand is evenhanded enforcement of the law—of Title VII’s prohibition against discrimination based on race. And that is what, until today’s decision, has been denied them.








Larwyn's Linx

Doug Ross runs one of the most interesting blogs on the net. If you're not a regular visitor, you're missing out. Beyond straight blogging, he also does a daily round-up of links, Larwyn's Linx, that is always quite good, and he was kind enough to include one of my posts in the round-up. Do please pay him a visit.






Sunday, June 28, 2009

Impeachment - Honduran Style; Obama Acts As To Be Expected


Left wing Honduran President and Chavez ally Manuel Zelaya has been arrested by the military pursuant to a Court Order in a Constitutional crisis of his own making. The radical lefties - Chavez, Castro & the Obama administration - weigh in to support Zelaya.

Honduras's Congress formally removed Mr. Zelaya from the presidency and named congressional leader Roberto Micheletti as his successor until the end of Mr. Zelaya's term in January. Mr. Micheletti and others said they were the defenders, not opponents, of democratic rule.

"What was done here was a democratic act," Mr. Micheletti, who was sworn in as president Sunday afternoon, said to an ovation. "Our constitution continues to be relevant, our democracy continues to live."

It should be noted that Micheletti was also a member of Zelya's party. Although the Constitutional issue provided the impetus for this act by the Courts and military, underlying it was concern with the role of Venezuela's clown dictator, Hugo Chavez, in Honduran politics. The WSJ quotes retired Honduran Gen. Daniel López Carballo, who "justified the move against the president, telling CNN that if the military hadn't acted, Mr. Chávez would eventually be running Honduras by proxy." The WSJ further notes that this was "a common view Sunday."

All of the rabidly left wing governments are attacking this arrest and the installation of a new President. Chavez, for one, is threatening war. The Obama administration has, according to the WSJ, "called the removal of President Zelaya a coup and said it wouldn't recognize any other leader." And Sec. of State Clinton goes one further. This from the WP:

Secretary of State Hillary Rodham Clinton says the action taken against Honduras' president should be condemned by everyone.

She says Honduras must embrace the principles of democracy and respect constitutional order. . . .

It certainly sounds like the Hondurans played by the Constitutional rule book. Yet the U.S. seems to want to favor the Chavista's unconstitutional acts. You know, honest to God, watching Obama foreign policy is like watching the Keystone Cops.








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A Very Guilty Laugh

Tired of 24/7 eulogizing about the talents of Michael Jackson? TNOY puts its all into perspective with some very funny . . . and really bad humor. See Michael Jackson's last order of take-out, memorialized at TNOY.

Politicized Science


. . . The public must be able to trust the science and scientific process informing public policy decisions. Political officials should not suppress or alter scientific or technological findings and conclusions. If scientific and technological information is developed and used by the Federal Government, it should ordinarily be made available to the public. To the extent permitted by law, there should be transparency in the preparation, identification, and use of scientific and technological information in policymaking. . . .

President Barack Obama, Memorandum, Subject: Scientific Integrity, 9 March 2009

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Obama strikes the highest of moral poses, yet scratch the surface and you will find no morality underneath. As has regularly been the case with Obama and the far left, the statists at the UN included, the gulf between words and deeds is a yawning chasm. In terms of politicized science, we have been treated over the past two months to:

- Obama's EPA making repeated claims that the science of global warming is "settled" and that regulation of CO2 is the only way to stave off disaster, yet suppressing its own internal study critical of the underlying science and that calls these conclusions into doubt. (H/T What Bubba Knows)

The Environmental Protection Agency may have suppressed an internal report that was skeptical of claims about global warming, including whether carbon dioxide must be strictly regulated by the federal government, according to a series of newly disclosed e-mail messages.

Less than two weeks before the agency formally submitted its pro-regulation recommendation to the White House, an EPA center director quashed a 98-page report that warned against making hasty "decisions based on a scientific hypothesis that does not appear to explain most of the available data."

The EPA official, Al McGartland, said in an e-mail message (PDF) to a staff researcher on March 17: "The administrator and the administration has decided to move forward...and your comments do not help the legal or policy case for this decision

The e-mail correspondence raises questions about political interference in what was supposed to be an independent review process inside a federal agency--and echoes criticisms of the EPA under the Bush administration, which was accused of suppressing a pro-climate change document

Alan Carlin, the primary author of the 98-page EPA report, said in a telephone interview on Friday that his boss, McGartland, was being pressured himself. "It was his view that he either lost his job or he got me working on something else," Carlin said. "That was obviously coming from higher levels." . . .

(H/T Memorandum)

- Last week, Team Obama released a 196 page report, "Global Climate Change Impacts In The United States" that contains so many inaccuracies and false claims that, as one climate scientist has stated, it would "make Pravda blush." And indeed, one of the major scientists whose data is relied upon in the report, Roger Pielke Jr., has taken the authors to task for wholly misrepresenting his work.

- Several weeks ago, during the House Energy Committee's truncated hearings on cap and trade, Democrats trotted out Al Gore, yet shielded him from testifying alongside Lord Christopher Monckton. Gore, who has long explicitly advocated suppressing dissenting voices on global warming, regularly ducks debates on the topic. There is probably no greater measure of how politicized the science of global warming actually is than the fact that its foremost proponent is unwilling to engage in public debate on the topic.

- The UN International Panel On Climate Change, an organization notorious for its suppression of dissenting voices and for presenting twisted and sometimes outright false data, is preparing for the next round of talks in Copenhagen. A subcommittee on polar bears is meeting now to prepare their report for the conference - but absent is one of the leading polar bear experts, Dr. Mitchell Taylor. He was disinvited because he does not believe carbon dioxide is a cause of global warming. Further, his own findings are that "global warming" is not harming the polar bears, with their numbers at optimum or growing - a truly inconvenient truth that we will not hear at the Copenhagen Conference. (H/T Crusader Rabbit)

When it comes to politicization of science, Obama and the left are bathing in it. They are pushing it to promote the vast expansion of government into, as Speaker Pelosi said, "every aspect of our lives."

The problems of politicized science are obvious. One is that, if acted upon, it will result in the massive misallocation of resources. A person need look no further in that regard than the House vote on Friday to enact a massive carbon tax. The plan will have negligible impact on global temperatures yet will have a huge negative impact on our lives. If enacted, it will drive substantial resources away from productive areas of the economy while, as Doug Ross notes, providing the engine for massive social engineering. Another example has been the disastrous push into bio-fuels. That push has critically lessened world agricultural production and, last year, drove food prices rocketing upwards to a level from which they have not returned.

The second effect of politicized science is more subtle, but equally as destructive. It is that scientific theories and observations that do not fit the politicized paradigm get ignored.

One example of that concerns the growing problem of droughts. According to the global warming crowed, carbon dioxide is the culprit. This from Peter Schwerdtfeger, emeritus professor of meteorology at Flinders University, writing in the Australian:

. . . Two decades ago, I pored over the spectral properties of the infra-red radiation of [carbon dioxide], which is essential to plant life, and found that it was almost completely overshadowed by the radiative properties of water vapour, which is vital to all forms of life on earth.

Repeatedly in science we are reminded that happenings in nature can rarely be ascribed to a single phenomenon. For example, sea levels on our coasts are dependent on winds and astronomical forces as well as atmospheric pressure and, on a different time scale, the temperature profile of the ocean. Now, with complete abandon, a vociferous body of claimants is insisting that CO2 alone is the root of climatic evil. . . .

. . . I do not believe for one moment that undisciplined burning of fossil fuels is harmless, but the most awful consequence of the burning of carboniferous fuels is not the release of CO2 but the large-scale injection of minute particulate pollutants into the atmosphere.

Detailed studies led by internationally acclaimed cloud physicist Daniel Rosenfeld of the Hebrew University of Jerusalem have revealed that the minute water vapour droplets that form around some carbon particles are so small as to be almost incapable of being subsequently coalesced into larger precipitable drops. In short, the particulates prevent rainfall.

Rosenfeld's research group has shown that humans are changing the climate in a much more direct way than through the release of CO2. Rather, pollution is seriously inhibiting rain over mountains in semi-arid regions, a phenomenon with dire consequences for water resources in the Middle East and many other parts of the world, including China and Australia.

Rosenfeld is no snake-oil salesman. As an American Meteorological Society medallist, he has an internationally endorsed research record in cloud physics that no living Australian can claim to emulate. . . .

If Rosenfeld's scientific interpretations are correct, then southern Australia would greatly benefit from the application of his discoveries. At the very least, Rosenfeld's conclusions should be accorded appropriate evaluation and testing by an unprejudiced panel of peers.

Yet his work so far has been ignored in Australia because it does not fit in with the dominant paradigm that holds CO2 responsible for reduced rainfall in semi-arid regions. . . .

(H/T EU Referendum)

Yet a second example of this same evil could well prove the most disastrous of all. Those who fully embrace global warming are ignoring the signs of a cooling earth and actual cold-weather related drops in agricultural production. See here and here.

I had to laugh in March when Obama excoriated Bush for supposedly "politicizing science," particularly on the stem cell issue - an issue, as Charles Krauthammer pointed out, on which Bush had taken an ethical stand that had nothing to do with politicization. Nothing Bush did begins to compare with how Obama, the UN and the green left have politicized the science of global warming. Indeed, one would have to go back to the Catholic Church of medieval times to find anything comparable. They get away with it because a corrupt media utterly ignores their mammoth hypocrisy. Thus, as Dr. North at EU Referendum notes, the debate is rigged:

This is a broader point that deserves more attention, touching on an effect we see in defence and elsewhere. The media – as a collective – has its own narratives and as long as an utterance fits with those narratives, it is given an airing. That which goes against the grain is buried.

Currently, the media narrative on climate change is that global warming is real and represents a major threat to the planet and humankind. Similarly, all the woes in the military stem from "under-resourcing" and all problems in Afghanistan will be solved by more "boots on the ground". Thus is the debate rigged, through which means our decline into obscurity, poverty and impotence is managed.

Welcome, Doug Ross readers.







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Saturday, June 27, 2009

Watcher's Council Results

Each week, the Watcher's Council holds a contest for best post. The Council members submit a post they have written and one post by someone outside the Council for consideration. The Watcher tallies the votes and announces the winners each Friday.

There is an opening on the Council. If you would care to submit your blog for consideration, please visit the Watcher's site. You will find instructions on the right side bar for applying to join the Council.

You can find the results of the weeks voting and the Watcher's cogent commentary on the submissions here. This week's winners were:






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The "Green Jobs" Canard - Devolving America


Green job advocates all make a fundamental error when they view the creation of jobs as the benefit arising from their green plans. Jobs are a cost. The services a job provides are the benefit. Green job advocates believe that greener technology for power generation, transport or food production will require more labor per unit of output than non-green or conventional methods. The fact that more workers will have to be hired to produce less energy is a cost not a benefit as they claim. Decreased labor productivity is the make-work path to poverty.

Green job subsidization will do nothing to help the United States recover from the current recession. It will only lower living standards by promoting inefficient technologies and artificially keeping labor and capital in construction and related industries that were the most over inflated during the bubble. These are the very industries that need to contract.

Beacon Hill Institute, Green Collar" Job Creation, A Critical Analysis, June 2009

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The BHI, a think tank at Suffolk University in Boston, just released its analysis of "green jobs." Therein, they analyze three influential studies, a UN study, a study by the The Center for American Progress, and a study by the The U.S. Conference of Mayors, all of which promote the creation of "green jobs" and a fundamental alteration to the energy sector. The BHI authors find the logic of these studies fundamentally flawed and the assumptions underlying them unsupported. This from their press release:

“Contrary to the claims made in these studies, we found that the green job initiatives reviewed in each actually causes greater harm than good to the American economy and will cause growth to slow,” reported Paul Bachman, Director of Research at the Beacon Hill Institute, one of the report’s authors. . .

The executive director of the Beacon Hill Institute and co-author, David G. Tuerck, . . . [notes] that “these studies are based on arbitrary assumptions and use faulty methodologies to create an unreliable forecast for the future of green jobs.

“It appears these numbers are based more on wishful thinking than the appropriate economic models, and that must be taken into consideration when the government is trying to turn the economy around based on political studies and the wrong numbers,” Tuerck said. . . .

The authors concluded by noting that further economic analysis is needed before governments move forward on green job initiatives. “All three green jobs studies we reviewed are riddled with economic errors, incorrect methods, and dubious assumptions. Economic policy should not be based on such faulty analysis. Serious economic studies of costs and benefits are desperately needed before the adoption of any green jobs proposal.”

You can find their report here. A final snippet from the report on the UN's push for a world-wide green economy is worth a read:

The U.N.’s report [Green Jobs: Towards Sustainable Work in a Low-Carbon World] contains the most serious economic errors of the three reports we review. It argues for radical changes in industrial and agricultural policy that would have disastrous economic consequences and would likely result in widespread impoverishment and mass starvation. It mistakenly claims that increased labor productivity results in unemployment. As a result it advocates moving to less productive modes of transport, farming, and energy production. Taking people out of taxies and putting them into rickshaws, forcing people to use more labor to produce fewer crops, and doing more work to produce the same amount of energy would plunge society back to pre-modern standards of living. Humanity has advanced as productivity has increased. As the labor force has expanded so have the number of jobs to be done. The U.N. report amounts to a call for a return to the stone-age.

So, don't you feel better now about yesterday's vote to take us down this road.



(H/T EU Referendum)






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