Tag Archives: political economy

“Merely as Districts”

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Recall the spendiferous $1.9 trillion bill enacted in March that President Joe Biden (D) and his fellow Progressive-Democrats have been pleased to call their “American Rescue Plan.” This enactment included funding explicitly for the States. Recall further that this…plan…seeks to bar recipient States from reducing their own tax rates as a condition of receiving the money.

…can’t use their share of the funds to “directly or indirectly offset a reduction” in “net tax revenue.”

Ohio demurred from that Federal intrusion into State prerogatives, as those prerogatives are made explicit in our Constitution’s 10th Amendment.

It’s possible that the Biden administration will lose on Constitutional grounds, as the Editors noted at the end of their piece, which centered on a Federal trial judge’s ruling allowing Ohio’s suit to go forward:

[I]n a preliminary opinion last week, federal Judge Douglas Cole found the state has a “substantial likelihood of success on that [Spending Clause] argument.”

But this is just an early skirmish in the Progressive-Democrats’ war on our federal republican system of governance. After all, this is the position of Biden and his brethren:

It is my first wish to see the United States assume and merit the character of one great nation, whose territory is divided into different States merely for more convenient government and the more easy and prompt administration of justice, just as our several States are divided into counties and townships for the like purpose.

And

…one of the first wishes of my heart, viz., to see the people of America become one nation in every respect; for, as to the separate [state] legislatures, I would have them considered, with relation to the Confederacy, in the same light in which counties stand to the State of which they are parts, viz., merely as districts to facilitate the purposes of domestic order and good government….

No, wait—that was John Jay, both times, regarding the power he wanted in our then nascent central government prior to the Constitutional Convention.

Biden is just bent on reviving that. Americans successfully defeated Jay in those early days. We Americans need to defeat the Progressive-Democrats’ assault today.

Inflation Expectations

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We consumers have them, and The Wall Street Journal Editorial Board ran one of their own in their Sunday piece. They also published the graph below, depicting consumer inflation expectations for the nearby future, originated by the University of Michigan’s Survey of Consumers.

Notice that. Between 2015, when the Obama “recovery” from the Panic of 2008 finally began to take hold, and 2021, when the Biden administration took office and renewed Jerome Powell’s and the rest of the Fed’s management team DOC, consumer inflation expectations remained remarkably steady in the range 2%-3%, just a skosh above the Fed’s currently claimed 2% target inflation rate.

Of course, those six years were in the face of the Fed’s artificial suppression of interest rates. Interest rates are a major driver of inflation.

However, with the Fed insisting on continuing to artificially suppress interest rates, now coupled with the Biden/Pelosi/Schumer-led Progressive-Democrat spending spree—a “checks in the checkbook, money still in the account” binge that makes Obama, and Trump, look like misers—and the resulting Federal deficit and national debt explosion, us consumers are recognizing that the money flood will override the interest rate suppression.

Because, in the end, inflation is always and everywhere a money phenomenon, not an interest rate one.

It’s possible that American consumers aren’t as dumb as our Central Bankers, enclosed in their own Beltway Bubble, make us out to be.

How Does This Work, Exactly?

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In a Thursday article concerning Colonial Pipeline apparently paying ransom to get their systems back online the Wall Street Journal‘s writers let this tidbit slip.

Bloomberg reported earlier Thursday that Colonial had paid the hackers a sum of nearly $5 million, and that the decryption tool ultimately wasn’t effective in restoring operations. Instead, Colonial was able to recover by relying on system backups, Bloomberg reported.

Which raises two questions. If Bloomberg‘s reporting is accurate,

  • Where were Colonial’s CEO, COO, and CIO that they allowed the hack to occur in the first place?
  • Where were Colonial’s CEO, COO, and CIO that they didn’t go to those backups right away instead of rewarding their attackers for the privilege of being their victim?

Colonial management’s apparent cowardice not only serves to expose their company to further extortion, it exposes their peers in the industry and businesses everywhere to this sort of extortion.

Just as bad is the Biden administration’s timid response. The longstanding (not just under this administration) vulnerability of all of our nation’s financial, power, water, fuel infrastructure, coupled with Biden’s ducking away from the current attack (it’s a private matter), exposes our nation to state-level attack and crushing defeat.

That’s Nice

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The Senate Homeland Security Committee held a hearing last week regarding the Colonial Pipeline fiasco (which has much wider implications than just one company cravenly paying off its attacker/rewarding its attacker for the attack).

Congressman John Katko (R, NY), Ranking Member of that committee also wrote a letter to Brandon Wales, Acting Director of the Cybersecurity and Infrastructure Security Agency, which is a part of the Department of Homeland Security. In his letter, Katko asked a number of questions regarding how well CISA works with its counterparts in other agencies and how well CISA’s inspections of the nation’s pipelines were going.

He also wrote optimistically

[T]he Pipeline Cybersecurity Initiative, housed within the National Risk Management Center (NRMC), has shown promise as a voluntary, public-private partnership between CISA, Transportation Security Administration (TSA), Department of Energy (DOE), and a range of pipeline-dominant critical infrastructure stakeholders. It is the Committee’s understanding that the core of this initiative revolves around conducting Validated Architecture and Design Review (VADR) assessments on pipeline assets.
These VADR assessments have proven effective at identifying a wide range of potential vulnerabilities within pipeline systems – some of which have been publicly distilled. Better understanding common security flaws and common misconfiguration issues is in everyone’s best interests, and these aggregated insights will help enhance national resilience.

It’s good to erect barriers that actually work.

Two things remain necessary, though. One is, once those barriers are set up, to go clean out the areas behind the barriers: to identify and remove existing malware from the operational and support software, to clean out the existing backups—both of software and of data—to improve training of human operators and support personnel regarding their role in preventing malware from reentering via phishing, spam, and so on, with more severe sanctions than heretofore applied to personnel who fail.

The other is to recognize that those barriers—software and human—will always be imperfect, will always become obsolete in the ongoing arms race between malefactors and targets, and will always need development, upgrade, and anticipation of future developments and potentials for attack.

“Student-Loan Debt Is a Burden on the Young”

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A number of letter writers The Wall Street Journal‘s Wednesday Letters column expressed their concerns about student debt. One comment, though, jumped in my direction.

It is time for the federal government to get out of the student-loan business.

The writer is well along; that’s a critical half of the problem.

The other critical half, is to not borrow in the first place. If a person can’t afford to go to college on his own nickel or on scholarships, he should go to a trade school or a community college that teaches trades.

Then get a job. The trades are more than honorable jobs, they’re their own Critical Items in our economy: nothing gets built—including the Progressive-Democrats’ turtles all the way down infrastructure—without them. And, the trades provide a nice income as well as actual work experience and time in the real world during which the person can arrive at a more informed decision about what he wants to do with his life and/or what he wants to get out of college.

And in the latter case, he can be accumulating a sum of his own money with which to cover his college costs.