Monthly Archives: September 2012

Obama’s Hypocrisy

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This from Bret Stephens, in The Wall Street Journal [emphasis mine].

“Hasa Diga Eebowai” is the hit number in Broadway’s hit musical “The Book of Mormon,” which won nine Tony awards last year.  What does the phrase mean? I can’t tell you, because it’s unprintable in a family newspaper.

[I]f you can afford to shell out several hundred bucks for a seat, then you can watch a Mormon missionary get his holy book stuffed—well, I can’t tell you about that, either….

The “Book of Mormon”—a performance of which Hillary Clinton attended last year, without registering a complaint—comes to mind as the administration falls over itself denouncing “Innocence of Muslims.”  This is a film that may or may not exist; whose makers are likely not who they say they are; whose actors claim to have known neither the plot nor purpose of the film; and which has never been seen by any member of the public except as a video clip on the Internet.

No matter.  The film, the administration says, is “hateful and offensive” (Susan Rice), “reprehensible and disgusting” (Jay Carney) and, in a twist, “disgusting and reprehensible” (Hillary Clinton).  Mr. Carney, the White House spokesman, also lays sole blame on the film for inciting the riots that have swept the Muslim world and claimed the lives of Ambassador Chris Stevens and three of his staff in Libya.

So let’s get this straight: In the consensus view of modern American liberalism, it is hilarious to mock Mormons and Mormonism but outrageous to mock Muslims and Islam.  Why?  Maybe it’s because nobody has ever been harmed, much less killed, making fun of Mormons.

RTWT.  There’s more, about the assault on American free speech by this American government, and about the necessary mutuality of respect.

Stephens centers his article on the behaviors of liberalism and progressivism, but Democratic Presidential Candidate Barack Obama is the head Progressive, and his silence on his movement’s hypocrisy is deafening.

Pity the Poor Union

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The Chicago Teacher’s Union, which is unhappy and feeling rushed.

Using the children its teachers claim to teach as hostages, the union has decided to continue its strike for more money, more job security, and less stringent individual teacher performance evaluation.  Of course, this leaves those children out of school and forces parents to lose income from taking time off from work or to incur additional child-care expenses to handle children who should be in school.  That doesn’t matter, though, to teachers whose salaries already are some 50% higher than those of the parents whose children they’re not teaching.  (On the other hand, what’s the downside for the kids, really?  This collection of teachers does poorly by the students: a 60% high school graduation rate, generally, and a 44% rate for black high schoolers.  Just 15% of fourth graders are proficient in reading.  Just 20% of the students are grade level proficient in math.)

But faced with a generous offer from the city to come back to work, the CTU declined even to vote on the offer over the weekend.

CTU President, Karen Lewis, said teachers wanted the opportunity to continue to discuss that offer.

Our members are not happy,

she said.

They want to know if there is anything more they can get,

she said.

They feel rushed,

!?  she said.

They want to squeeze more—as if their already failed performance should be rewarded.  Talk about not hurting (teachers’) self-esteem.  They feel rushed?  They always could come back to work and study the city’s offer at leisure.

In the meantime, the kids are suffering.  Or, maybe not so much.

The Federal Bank of US Taxpayer

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In a new Bernanke hair-brained scheme, the Federal Reserve Bank said last week that it is going to quantitatively “ease” by buying mortgage-backed securities from the private economy, to the tune of $40 billion worth per month.  Nearly half a trillion dollars each year.  And it’s open-ended, meaning the Fed has no plan—no idea, really—of when it might stop.

Bernanke says this is necessary.

If the outlook for the labor market does not improve substantially, the committee will continue its purchase of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.

Bernanke then said, in all seriousness,

[This move will] assure the public that the Fed will remain accommodative long enough to ensure recovery.

We don’t have a single number that captures that, but we anticipate that we’ll have to do more and we’ll do enough to make sure the economy gets on the right track[.]

In other words, he doesn’t have a clue what his decision criterion should be, but he’s going to decide, anyway.  And more so, as time goes on and his nonexistent milestone isn’t met.

And

These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month [including its existing long-bond buying “plan”] through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative[.]

There are a number of questions, though.

Why are we taxpayers being put on the hook for these private economy instruments?  If these securities are failing in our economy, why should the public have to pick up the tab?  If they aren’t failing, whence the need to take them off the banks’ hands?  What ever happened to free markets, responsibility, and accepting consequences, as well as reaping rewards?

And these questions:

The Fed has been artificially suppressing interest rates for the last three-plus years.  That suppression already has lowered my own mortgage rate from 6+% to nearly 3.5%.  What does Bernanke expect to gain from suppressing mortgage rates directly?  The inflation rate this year is 1.7% month on month, and 2% year on year through August.  The August interest rate on a one-year Treasury Note is 0.16%: he’s already suppressed interest rates to the point that we’re paying the government for the pleasure of lending it our money.  What does Bernanke expect to gain?

These artificially suppressed rates have a number of negative effects.  By distorting the market for debt instruments, the Fed is making it difficult, if not impossible, for investors accurately to assess value of the debt of borrowers—and so is making it unnecessarily difficult, and risky, to lend.  How does the Fed plan on redressing this failure?

By artificially suppressing interest rates, the Fed is actively and extensively damaging those who’re committed to, or dependent on, fixed income instruments, like bonds, for their income.  Folks like retirees.  How does the Fed plan on redressing this failure?

Savings accounts have become utterly useless—the interest rates here have been good approximations of zero for the last four years.  Savings accounts used to be an effective means through which financial institutions could accumulate funds for lending to borrowers—like home-buyers and businesses looking to expand their operations. How does the Fed plan on redressing this failure?

Our economy will recover, eventually.  And interest rates will rise.  Catastrophically, if all the money the Fed is pumping into our economy with…ideas…like this one drives inflation skyward.

On top of this, though, the Fed is creating another time bomb, one which it has no hope of controlling.  When interest rates rise, and the cost of borrowing goes up, for lending institutions as well as for borrowers, as the former search for funds to loan to the latter, those lenders still will be sitting on all those mortgage loans let at artificially low rates.  Those low rates in a healthy economy (let’s skip over the high inflation, high interest rate economy) will be far below then-market rates, and so those existing mortgages, mortgages with which the lender still will be stuck, will not be generating enough income for the lenders to continue to loan.  For up to 30 years in the mortgage market.  Can you say, “S&L bankruptcy?”

And, by the way, as Federal Reserve Bank of Richmond President Jeffrey Lacker said Saturday,

Channeling the flow of credit to particular economic sectors is an inappropriate role for the Federal Reserve[.]

Or for any part of the government.

Even Progressive Europe

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…recognizes the foreign policy of Democratic Presidential Candidate Barack Obama to be an abject failure.  Spiegel Online International quotes a few of the German papers’ recognition of this.

The left-leaning [Spiegel‘s characterization here and below] Berliner Zeitung:
Four years ago, Obama pledged to seek reconciliation with the Muslim world. Now, it is doubtful whether he has succeeded. The US and its European allies now have to ask themselves how much support they still enjoy in the countries of the Arab Spring.

The center-left daily Süddeutsche Zeitung
America hardly has influence in the region any longer, and now sees itself confronted with anti-American sentiment in places where it no longer controls the dictators. Meanwhile, forces that simultaneously exploit and spurn America are gaining influence.

The conservative Die Welt
US President Barack Obama’s Middle East policy is in ruins.  …Washington has provided the image of a distracted superpower in the process of decline to the societies there. This image of weakness is being exploited by Salafists and al-Qaida….

And so on.

Foreign Policy and China

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As useless and timid as our foreign policy “strategy” has so graphically shown itself to be in the Middle East and northern Africa, it’s just as foolish in Asia, most especially regarding the People’s Republic of China.

In response to Democratic Presidential Candidate Barack Obama’s much ballyhooed (in some circles) “pivot toward Asia,” Ambassador John Bolton, writing for The Wall Street Journal at the above link, points out these small details concerning the PRC and its relationship with us.

Whoever becomes president in January will require a policy of sustained American involvement and leadership….  The US is already perilously close to the point strategically where China will simply run the table with its claims [to the South China Sea, right up to the shores of the Philippines, Vietnam, and Malaysia].  Potential hostilities are no longer hypothetical.

Last week in Beijing, Secretary of State Hillary Clinton repeated the usual US bromides, namely: resolving the region’s maritime disputes peacefully through negotiation consistent with international-law principles regarding freedom of navigation.

The PRC answered this nonsense with a naked threat of war if we don’t shape up and accede.

Foreign Minister Yang Jiechi replied bluntly that China was sovereign over the territories, and government media mouthpiece Xinhua warned the US that “strategic miscalculations about a rising power could well lead to confrontations and even bloody conflicts, like the war between ancient Athens and Sparta.  To avoid such a catastrophic scenario, Washington has to change its obsolete and doubt-ridden thinking pattern and cooperate with Beijing to settle their differences.

So. Obama has received his marching orders.

Bolton then offers a solution, albeit one that the present administration will find itself unable to implement after looking in the mirror.

Such [timidity] must give way to a strategic approach based on three key elements.

First, the US must decide unequivocally that Beijing’s expansionism…is contrary to American national interests.  There are high, tangible stakes for us and our Asian and Pacific friends, ranging broadly from Japan and South Korea to Australia and the Association of Southeast Asian Nations (ASEAN) including Indonesia, Malaysia, Vietnam and the Philippines.  The stakes include undersea mineral resources and sea lanes of communication and trade critical to US and global prosperity.
…
This is about power and resolve.

Second, we must rapidly rebuild America’s Navy, without which any shift in strategic thinking is hollow.  This is a maritime problem at the operational level, demanding adequate resources

China is building its own blue-water navy…actively pursuing anti-access, area-denial tactics and weapons systems intended to push the US back from the Western Pacific.  Unless we increase the Navy’s capabilities, or essentially abandon other ocean spaces, the negative direction and ultimate outcome in the waters off China are clear.

America’s current approach—watching while initially minor incidents risk escalating—puts us at a distinct disadvantage.  Passivity will allow Beijing to prevail repeatedly, incident after incident, until US weakness becomes so palpable that there is no doubt of China’s across-the-board success.

Third, we must work diplomatically, largely behind the scenes, to resolve differences among the other claimants.  In the East China Sea, Japan is the major competitor, while Beijing butts heads with Vietnam, the Philippines and other ASEAN members in the South China Sea.  These regions…for China both are part of the same strategic picture. So it must be for America.

Fat chance.