“Credible Military Capabilities”

The European Union needs some, says Ursula von der Leyen, European Commission President.

In order to respond to crises, the EU needs “credible military capabilities,” the leader of the EU Commission Ursula von der Leyen said at the World Economic Forum in Davos on Wednesday.
The bloc has already “set up the building blocks of a European defense union,” the former German defense minister said in her speech.
“It is complementary to NATO and it is different,” she added. “There is a European way to foreign policy and foreign security policy where hard power is an important tool […] but it is never the only one.”

Well, NSS.

This is much of what President Donald Trump has been saying since he began campaigning for office in 2015. It’s part of his long push (which is beginning to have some success) for NATO’s European member nations to quit freeloading off our treasure and blood and actually honor their NATO commitments with more of their own money and blood.

It’s also a clear indication that those nations, whose prosperity appeared and grew under American protection, can—and have been able to for a long time—do more for NATO than they have been. After all, it will cost much more to develop an additional defense establishment with the building blocks of a European defense union that is complementary to NATO and…is different.”

Von der Leyen says the EU can afford both.

Trade Dispute

Deutsche Welle is worried about President Donald Trump reignit[ing a] trade battle with Europe.

US President Donald Trump vowed on Wednesday to make good on threats to impose high tariffs on European cars if the bloc doesn’t agree to a long-delayed trade deal with Washington.

The US leader said that the tariffs, which would Germany’s car industry especially hard, could amount to 25%.

This is a misplaced emphasis. The EU has been dealing in bad faith with us, if not openly prosecuting its trade war against us, for some time. The latest example is the EU’s plan to impose a “digital tax” on our tech companies. The EU claims that its new tax would be imposed globally, on all international tech companies, but the largest are American, and the EU tax is explicitly structured to go after ours.

The longer-standing bad faith includes the question of automobile tariffs.  Trump, years ago, offered a no-tariff on cars trade regime as part of a no tariffs at all trade regime between the EU and the US. The German auto industry immediately agreed with the no auto tariffs offer and tried to get the German government to go along with it and work to get EU agreement.  Then-EU President Jean-Claude Juncker agreed to take discuss the no auto tariff question, but then…silence.

The EU (and Germany) have completely ignored the offer of eliminating tariffs on some or all of EU-US trade.

Trump isn’t reigniting anything; he’s just responding to the EU’s trade war.

Tariffs and Fairness

In a Wall Street Journal article centered on the way tariffs involved in the People’s Republic of China/US trade “dispute” and the simmering EU/US trade dispute impact a Scottish town, Alistair MacDonald posed a question.

Is it fair for the US, in its pursuit of trade concessions, to hurt smaller businesses that make iconic products in nations such as Scotland?

The question is a non sequitur.  The correction is, “Is it fair to single out particular subgroups for special treatment when addressing the rest of the group or the group as a whole?”

No, of course not.

Or MacDonald’s question is not a non sequitur (other than the business about iconic products, which is irrelevant in any case): the group that, at this stage, should be being addressed is the group known as Great Britain. In that light, it would be both fair and politically sound to exempt Scottish industries from tariffs applied in response to EU trade abuses. Scotland, after all, is first a part of Great Britain, and only through Great Britain a part of the EU.

Losing our Free Market?

And not just through Progressive-Democrats’ Big Government demands and planned impositions.  Now it’s fund MFWICs with bugs up their noses about their currently favored special interest, exemplified by BlackRock’s Larry Fink.

BlackRock, along with Vanguard and State Street, are the three most powerful investment funds, holding as they do roughly 20% of the S&P 500 through funds they run for investors.  And now Fink is starting to dictate to the companies his company owns shares in what they must do vis-à-vis climate change, Fink’s issue du jour.

Mr Fink is surely right that investors should worry about climate risks leading to big shifts of capital, and therefore big price moves.

No, Fink isn’t “surely” right, for all that he might be. More likely, the climate-related risks are political, as politicians extend their pandering, rather than empirical.

Regardless, though, Fink’s rightness or wrongness isn’t relevant. What’s important here is that Fink shouldn’t be allowed to dictate to those investors that they must invest according to his diktat rather than in accordance with their own imperatives or read of the factors relevant to their own investing.

Medicaid Block Grants

The Trump administration is planning to set up procedures for allowing States to convert the Medicaid funding they receive from the Federal government from matching funds to block grants.

The new procedures would represent a large change.

Medicaid funding is open-ended, meaning the federal government matches state spending. If that funding is converted to a block grant, a state could get a limited, lump sum of federal money instead.

There are two key differences here. One is that the funding would go from strings-attached matches to no-strings block grants. The other is that the decision to go to block grants would be each requesting State’s, resulting in less Federal control over that State’s internal affairs.

Of course, this has vested interests twisting in their knickers.

Consumer groups and [Progressive-]Democrats say that limitation means thousands of people could lose Medicaid coverage or be unable to enroll if states’ costs rise or enrollment swells.

This is cynical and disingenuous. Whether a State’s citizens lose or can’t get access to their own State’s Medicaid is a matter strictly for, and wholly under the control of, the politicians and bureaucrats in that State’s government and the citizens who elect those politicians—who are the bureaucrats’ direct bosses.

At bottom, there is nothing at all preventing a State from reallocating its own spending to cover those costs or enrollments. Or of limiting access to ensure the truly needy can get the aid, limits that too often are blocked by those Federal strings.