Tag Archives: government

Hope and Change

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The last 3½ years have seen a lot of this slogan.  While the hope—for the better—waned long ago, President Obama has, in fact, achieved quite a lot in the way of change.  Here are some of those changes:

He got Obamacare rammed through, albeit in the dark of night in a wholly, cynically, partisan manner, and he did it without a single Progressive (or Republican, come to that) congressman actually reading the bill prior to voting on it—some proud in their ignorance.  This bill achieves quite a lot: it lets children extend their childhoods and parental dependencies to their 26th year, by staying on mumsy’s and popsy’s health insurance policies.  It adds to the Federal deficit with its trillion-dollar costs.  It lets you, taxpayers, pay for coverage for an additional 20+ million health insurees.  It nationalizes the health care and health insurance industries.

He got Dodd-Frank rammed through in the same manner and with the same level of Congressional ignorance.  And pride of ignorance.  This bill also achieves quite a lot.  It creates a fourth branch of government in the Consumer Financial Protection Bureau and the Financial Stability Oversight Council.  These two agencies are wholly unaccountable to the Congress—and so to us—are not under control of the President, and at least the CFPB’s budget comes, on demand, from the Federal Reserve System.  Yet these two will, single-handedly and without oversight, determine whether financial institutions will be allowed to do business (vis., extend loans or credit of any sort—even at your corner mom and pop grocery store) and the conditions under which they will be allowed to do so.

He’s achieved a trillion-dollar cut in our defense capacity at a time of rising PRC aggressiveness, a soon-to-be-nuclear-armed Iran, and an expansive, grasping Russia.  This includes a shrinking Navy, a gutted Army, and an Air Force with little capacity for anything other than looking pretty in fly-bys.

In an apparent nod to an earlier Secretary of State, Henry Stimson, he’s leaking every cyber-warfare and counter-terrorism secret we used to have to the news outlets.  Apparently, if we have no secrets, other gentlemen have no need to resist the temptation to read ours.  Or he subscribes to the theory that if we tell our enemies everything we have, we don’t need to spend our resources trying to figure out what they know about us (another savings!).  Or both.

He’s instructed his DoD to desist using unpleasant interrogation techniques.  And, since he believes our enemies have no knowledge of anything that’s of intelligence value at all, he’s instituted a program of killing them rather than capturing them and having to figure out how to hold them and question them.  And he brags about personally selecting, by name, the ones that are to be assassinated—a Roman circus thumbs down from the Emperor.

No, Obama has wrought enormous change.  Just all of it has been destructive of our great nation.

We need to fix this.

Another Out of Control Regulation

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This regulation began as a Bush the Younger administration’s EPA attempt to work on an environmental problem now known to be non-existent.  Unfortunately, it’s being continued under an Obama administration EPA for no reason other than a cynical exercise in governmental power for the sake of that power.

The regulation in question is the EPA’s requirement that oil refiners mix into their refined fuels millions of gallons of a cellulosic ethanol, even though that additive does not exist.  This has the refiners in a quandary because the EPA is intent on fining them heavily for their failure to use this ghost chemical.

Tom Pyle of the Institute of Energy Research points out that

None, not one drop of cellulosic ethanol has been produced commercially. It’s a phantom fuel.  It doesn’t exist in the market place.

He goes on

Why would [the EPA] ask them to blend any at all if it doesn’t exist?  Because they know that they can squeeze some extra dollars out of them.

On the other hand, the EPA does have the authority to relax the requirement, and apparently they’re in the process of that.  The cellulosic ethanol blending requirement is, supposedly, being reduced by 98%.  Thus, in the end, the refiners only need to use 2% of this non-existent additive compared to their original requirement.  There’s a break.  Charles Drevna, representing refiners, has the right of this.

[The EPA is] forcing us to use a product that doesn’t exist; they might as well tell us to use unicorns.

He added

We’ve had to go to the courts and litigate this thing is because [the EPA] just turned a blind eye to us[.]

They have to because that mandate, the potential per centage reduction notwithstanding, just gets larger and larger: 500 million gallons of cellulosic ethanol this year, 3 billion in 2015, and 16 billion in 2022.  Never mind that nobody is making this stuff.

It shouldn’t have come to this.

Federal Overreach

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As C Boyden Gray and Jim R Purcell note in a recent Wall Street Journal op-ed, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is an especially egregious example, an Act that arrogates vast power to the Federal government and then concentrates it in the Executive Branch.

As they note,

Dodd-Frank created both the Financial Stability Oversight Council and the Consumer Financial Protection Bureau, giving each agency effectively unlimited power. The FSOC can declare a financial firm “systemically important”—that is, too big to fail—based on “any” “risk-related factors” that it “deems appropriate.” And the CFPB can punish even responsible lenders who in good faith offer loans that the bureau later deems to be “unfair,” “deceptive” or “abusive.”

Demonstrating just how far this overreach is intended to go, the illegally appointed head of the CFPB, Richard Cordray, has instructed Congress that it is “probably not useful” to define in advance what an “abusive” lending practice is.  No, he’s just going to use his enormous, and unconstrained, his enforcement powers to retroactively punish lenders based on his carefully ex post definition of the “facts and circumstances” of each of their cases.  Nice company you got there.  Be too bad if something was to happen to it.

That this overreach is deliberate is demonstrated by the Act’s cynical elimination of any pretense of control by any branch of the government over these two Executive Branch bureaucracies, and the Act’s cancelation of even the most ephemeral separation of the three branch’s powers.

The CFPB is not subject to Congress’s “power of the purse,” which James Madison knew to be Congress’s “most complete and effectual weapon.”  Instead, Dodd-Frank lets the CFPB claim more than $400 million from the Federal Reserve each year and prohibits Congress from even reviewing that budget.  The president’s control over the CFPB is limited because by law he can remove the agency’s director only under strictly limited circumstances.  Finally, Dodd-Frank limits the courts’ review of CFPB’s legal interpretations.

And

The FSOC is similarly free from checks and balances.  For example, when the Council—a working group of the Treasury secretary, Federal Reserve chairman, comptroller of the currency, and other unelected regulators—anoints a financial institution as too big to fail, the courts are prohibited from even reviewing whether the regulators properly interpreted the applicable laws.

And that illegal appointment?  Cordray was given a recess appointment while the Senate was in session.

So much for the Constitution, that document that’s more than 100 years old and hard to understand.  So much for the Rule of Law.

RTWT.

But It’s the Wrong Problem

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Ron Williams, a former Chairman and CEO of Aetna Inc, in a recent Wall Street Journal op-ed, described his evolution toward opposition of Obamacare’s Individual Mandate, which he had supported initially.  He then offered a couple of alternatives to the Individual Mandate; however his alternative solutions are as erroneous as the Individual Mandate is an overreach of Federal government power.  The reason for his error is that he’s pursuing the wrong problem.

Williams says

As a society, we have a moral obligation to ensure everyone has access to affordable health care.  We must find a way to cover those who are no longer healthy but need care.

No.  There is a difference between health care and health insurance; the two are conflated far too often—sometimes cynically and deliberately, sometimes out of genuine ignorance, and sometimes just out of careless thought.  People who are no longer healthy do not need health insurance; they need health care.  We must find a way to help them to get that care.  Moreover, this social obligation is not at all a government obligation, or even a legitimate government task.  Society is not our government—it is us.

When government butts out of our affairs, when it leaves our money in our hands, it becomes a lot easier for us as individuals to see to our obligations ourselves, and in our own way.  Then we can do more of what we need to do—directly, or through our local communities, or through our churches and private charities, or some combination of these.  Government legitimately comes into play only as a last resort, not the first resort—or only resort, as some would have it—and the Federal government must be last among these.  New York’s tax funds, to the extent they’re involved at all, should go first to New York’s poor, not first into a general national pile from which, for instance, Illinois or California might draw ad lib.

On top of that, competitively sold health insurances policies, sold nationwide rather than within 50 different state jurisdictions, would be a powerful market solution that would potentiate our ability as a society to act on this imperative.

How is this Possible?

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In an apparent attempt to obviate the need to move forward with a Congressional contempt citation of the Attorney General of the United States, that AG, Eric Holder, last Thursday sent a letter to the Chairman of the House Committee on Oversight and Government Reform, Congressman Darrell Issa (R, CA).  In this letter, Holder offers to provide to the Committee many of the “Fast and Furious” documents subpoenaed and heretofore withheld by Holder, and Holder offered personally to brief Issa in the subject.

This is a good start, but there’s more to this story.  Here’s an amazing paragraph from that letter [emphasis added].

The record in this matter reflects that until allegations about the inappropriate tactics used in Fast and Furious were made public, Department leadership was unaware of those tactics.  Indeed, as the documents we provided to the Committee relating to the drafting of the February 4 letter reflect, Department leaders were assured by the heads of Department components in the best position to know the true facts that the allegations being made were “categorically false.”  However, over a period of months in 2011, as documents to be provided to the Committee were collected and reviewed, and as witness testimony before the Committee was evaluated, Department leadership learned more and began to assess the facts of this matter independently.  The Department’s understanding of the facts underlying Fast and Furious became more developed, particularly as evidence came to light that was inconsistent with the initial denials provided to Department personnel.  Over time, Department leadership came to recognize that Fast and Furious was fundamentally flawed, as I noted in my October 7, 2011 letter to you and other members of Congress….

This fast and Furious operation was conducted under the auspices of the DoJ.  These data, concerning the misbehavior, were in the DoJ’s hands all along.  “Department leadership” (read: Holder) didn’t know these data?  How is he leading his Department if he can’t even get his own subordinates to talk to him?  How is he leading his Department if, alternatively, he chooses to be ignorant of the data in his subordinates’ hands until outside agencies force him to look at them?

What level of competence produces this quality of performance?

Finally, keep in mind that the House Committee didn’t begin its own investigation until well after Agent Terry’s murder.  Holder could have put this whole matter to rest—indeed he could have avoided all of  this hoo-raw, all of this expenditure of taxpayer money—if only he’d listened to the Clue Bird when it presented him with the murder of a government agent, presented him with a murder victim with weapons his own Department was turning over to drug cartels near the body.

The complete Holder letter can be seen here.