Government Intervention

The Shanghai Composite Index closed [Wednesday] 1.2% higher, having earlier fallen as much as 5%. The turnaround came after a number of companies disclosed that state-backed companies were among their top shareholders….

Of course.

Still want to “invest” in the PRC?

The Fed’s Error

Many observers have called for the FOMC to tighten monetary policy by raising interest rates in the near term. But such a course would create profound economic risks for the US economy. Why would a near-term tightening of monetary policy be so problematic? Because given the prevailing economic conditions, higher interest rates would push the economy away from the FOMC’s economic goals, not toward them.

A Hot Hand

As economic managers, Chinese leaders have been in a league of their own for the past quarter century.

They’re the product of a bureaucratic system that, at its best, weeds out underperformers, rewards achievement and prizes experience. By the time they reach the very top, most leaders have run provinces the size of whole countries. Their image of competence has been reassuring at home—and acknowledged abroad—at times of crisis. And they’ve delivered success: China’s economy grew faster, and for longer, than any in history.

That’s how Andrew Browne opened his recent piece in The Wall Street Journal. Then he added,

Trump and Immigration

Republican Presidential candidate Donald Trump wants to deport all illegal aliens and sharply restrict legal immigration. I’ll leave the foolishness of the first for another post; I’m more interested in the restriction on legal immigration Trump is proposing here.

He also calls for “a pause” in all immigration, for an unspecified period.

That was buried in the WSJ op-ed at the link. I’ve not seen anything even remotely definitive on Trump’s plans for Social Security, so I have to ask: how does he plan to fund that program?

Democrat Disingenuosity

An example is provided by a Wall Street Journal op-ed.

President Obama says that critics of his plan to decarbonize the economy are “the special interests and their allies in Congress” repeating “the same stale arguments” about “killing jobs and businesses and freedom.” He adds that “even more cynical, we’ve got critics of this plan who are actually claiming that this will harm minority and low-income communities.”

His EPA, though, has let the cat out of the bag in its Clean Power Plot Plan:

Blunder or Opportunity?

Russia has filed a claim for some 463,000 square miles of Arctic Sea “coastal” shelf, extending more than 350 nautical from Russia’s Arctic Sea shore. Russia intends to exploit the vast oil and natural gas deposits below the sea floor.

Senator Dan Sullivan (R, AK) thinks has demurred, thinking this in combination with Russian military force transfers into its northwest coupled with our own military drawdown is a “strategic blunder.”

Aside from Russia’s land claim and the military contrast not being particularly related to each other, Sullivan is badly overstating the implications of Russia’s seabed claim before the UN. In fact, this is a vast opportunity for us, did we have an administration astute enough to take advantage of it.

The FTC Misunderstands

The Federal Trade Commission in its 100-year history has never agreed on formal principles for policing companies engaged in “unfair” competition. That looks set to change.

Members of the FTC are close to a bipartisan agreement to lay out for the first time how the commission views its authority to bring cases against businesses it believes compete unfairly, according to people familiar with the deliberations.

Free College

Hillary wants to rein in the rising cost of a college education.

States would have to increase their own spending on higher education, and universities would be required to control spending[.]

With those strings, Clinton would send an additional $350 billion of your tax money (including your higher taxes she’s proposing to pay for some of this) over the next 10 years to the states for their public universities and community colleges.

And

…new rules would ensure a certain portion of total spending is directed to instruction….

A Proper Rejection

The New Hampshire Executive Council has refused to allow the expenditure of $640 thousand on the State’s Planned Parenthood facilities. Councilor David Wheeler (R) said,

You can’t divorce what’s going on nationally from Planned Parenthood of Northern New England and we need a real investigation[.]

If the State legislature intends to do the right thing, it will follow the Executive Council’s example and reallocate those $640k to other women’s health centers. If the legislature chooses not to, it’ll be supporting the arrogance of Jennifer Frizzell, Vice President for Public Policy at Planned Parenthood of Northern New England:

Crony Capitalism

Here’s an exchange between Senator Rand Paul (R, KY) and Donald Trump (Business Mogul) during Thursday’s GOP debate.

“I gave to many people before this,” Trump said at the debate today. “When they call, I give. And you know what, when I need something from them two years later, three years later, I call them. They are there for me.”

His comments came in response to an attack from rival Sen Rand Paul.

“You’ve donated to several Democratic candidates. You explained away those donations saying you did that to get business-related affairs,” Paul said. “And you said recently, quote, ‘when you give, they do whatever the hell you want them to do.’”