Catharsis 174

The presidency of Barack Obama is disastrous for America, and so for the world. Yet it may turn out to be good for America, and so for the world, because it is such a disaster.

Obama coming to power was “progressive” liberalism coming to power. It was environmentalism coming to power. It was a late-twentieth-century revised leftism coming to power – the leftism that had given up on a vanishing proletariat as the target of its ruthless “compassion” and substituted “victims of colonialism, racism, and sexism”. It was multiculturalism – ie sympathy with Islam – coming to power. It was Robin Hoodism – take from the rich and give to the poor –  coming to power. It was the Western-academic version of egalitarianism coming to power. All those ideological theories that had been stewing in the skullpots  of professors and community-organizers and pacifists and spoilt-kid terrorists ever since the 60s and Vietnam, could now at last be put into practice, and a new Virtuous America would emerge. There would be “social justice”. There would be “free” health care for all and education distributed and quality-controlled by the wise decisions of trade union bosses. Everyone would work – in ever greater numbers for the government. There would be no more fossil-fuel pollution; the sun, the wind and the waves would keep everyone cleanly supplied with light and warmth and transport. No one would eat too much or anything bad for their health. Of course everyone would be less free, but that would be a trifling sacrifice for Virtuous America. All the Left’s high ideals would at last be realized.

To do this Obama was elected.

He has made America poorer and weaker.

Will the lesson be learnt?

If the Obama disaster doesn’t bring the ideology of the Left into derision forever, it should at least keep a few generations from trying the failed experiment again.

Victor Davis Hanson is thinking along the same lines as we are. He writes at PajamasMedia:

Barack Obama has done the United States a great, though unforeseen, favor. He has brought to light, as no one else could, many of the pernicious assumptions of our culture from the last half-century. He turned theory and “what ifs” into fact for all America to see, experience, and, yes, suffer through. …

As a young, post-racial, first African-American president — glib, hip, cool, charismatic, with unapologetic Chicago hard-core leftist roots and Ivy League certification — Barack Obama was right out of liberal central casting. He would do what no other liberal had done in fifty years: prove to America that it really, really was left-of-center by ramming down its throat both a liberal agenda and thousands of left-wing facilitators. …  Obama arrived with a super-majority in the Senate, and a large majority in the House: anything was now possible and almost everything was thus tried. …

At last we sheep got the messianic prophet to deliver the divine message. When he was declared a “god,” with supernatural powers that sent tingles up journalists’ legs, we were at last to climb the mount into the Promised Land. Electing him was the trick; simply enacting his redistributive agenda would be easy … now the people’s money could be at last directed to saving the planet, helping mankind, and bringing heaven to earth. …

What of the Obama effect on the outer world – of the weaker America?

I don’t think another president will ask the Arab League and the UN — but not the U.S. Congress — whether he can lead from behind France and Britain in bombing an Arab oil exporter on behalf of “rebels” who promise Sharia Law. “Putting light” between America and Israel earned us this week’s charade at the UN, and a new Middle East war on the horizon in the manner of 1967 or 1973, but this time with new enemies on the periphery like Iran, Turkey, and Pakistan in addition to a hostile Egypt, Jordan, Lebanon and Syria. “Reset” won’t be used any more, and the idea that friends like Britain, Israel, Eastern Europe, etc. were to be shunned while rivals and enemies like the Palestinians, Russia, and the Latin American communists were to be courted is over also. Friends are friends for a reason, and enemies the same …

And of the poorer America?

After $5 trillion in borrowing and 9.1% unemployment, Keynesian economics has been slain by Obama. Oh, Obama may crisscross the country demanding just one more chance to borrow another half-trillion to “grow jobs,” but no one is listening any more. “Shovel ready,” “stimulus,” “investments,” and “infrastructure” simply have been redefined by Obama as euphemisms for wasteful borrowing. I doubt they will regain currency for a decade or so. And thanks to Obama, a billion is now a passé noun, and trillion has been reduced to the status of monopoly money. …

The old welfare state after Obama will soon be addressed as never before. With almost 50 million on food stamps, and record numbers on new extended unemployment insurance, with Medicare and Social Security nearly insolvent, the Obama boilerplate remedies of making “millionaires and billionaires,” “corporate jet owners,” and “fat cat bankers” pay their fair share won’t nearly be enough. Obama demagogued the “fair share” issue to the death, and it cannot be demagogued much longer since the money is about gone. …

Of nationalized health care?

For much of the 1950s and 1960s, we were told that we lacked a British-style National Health Service, thanks to all sorts of devilish AMA conspiracies. JFK, LBJ, and Carter could not get passed what we all secretly were supposed to have craved. Hillarycare failed. But Obama alone brought us federalized health care, a trillion-dollar borrowing plan that will supposedly streamline care, save us trillions in the long term, and cost less in the here and now, as state GS-20 doctors attend to us, in DMV lines, far better than their greedy counterparts. Despite all the noble lies, no one believes that. After 2012, ObamaCare will be repealed in short order, and there will be no more fantasies about economical cradle-to-grave health care denied us by conspiratorial doctors and greedy insurers. …

Of race relations?

The public thought, with their first “black” president, they would be hearing even-handed lectures, as one week Obama explained why the federal government had to ensure equality of opportunity in a multiracial society, while on the next he gently warned minorities not to rely on government to ensure parity when success or failure for all Americans far more often hinged on personal choices, discipline, and sacrifice. Instead, Obama voted present while his surrogates ensured that America is more racially polarized than any time in our history [recent history, anyway – JB]. But this too was cathartic. A majority of the population of all races has simply tuned out the now near meaningless charge of “racist” and sees the real danger to America in racial tribalization and balkanization rather than classical racial discrimination. We will see another black president some day, but race will be incidental not essential to his or her character.

Of environmentalism?

For the foreseeable future, “millions of green jobs” and “cap and trade” are also the stuff of comedy. Thanks to Obama we’ve been there with Van Jones, Solyndra, and EPA hyper-regulations, and done that. I don’t think Al Gore will be any more quoted or EU policies emulated. More likely we will go back to finding new fossil fuel sources as private technology keeps improving on alternative energy. Fairly or not, “green” conjures up everything from Climategate to Solyndra, and suggests an entire class of elite academics, financiers, and activists who wished to follow the oil companies’ crony-capitalist business plans of the 1940s and 1950s without the basic truth that oil is a logical energy source and so far a windmill isn’t.

Of socialist idealism in general?

After Obama, I don’t think there will be any more John Kerry or Al Gore sermons about the superior Europe model either. A disarmed, undemocratic, insolvent, shrinking, and increasingly polarized continent is now a model of what the United States should not be. There simply have been too many California as Greece stories for any politicians to advise us with the old admonition: “But In Europe, they….”

Obama thought that he would replicate the EU paradigm. He would bring in properly certified technocrats from academia or government like Chu, Geithner, Goolsbee, Holder, Orszag, Romer, and Summers to oversee massive new regulations and taxes that would dictate from on high how the ignorant masses must be protected from everything from cheap gas to old-style light bulbs. In less than three years, they all proved far more ignorant about what makes America work than the local car dealer, welder, or farmer. After Obama, Americans will not be fooled for a generation or so into thinking that a Harvard PhD or Berkeley professor “really” knows that borrowing is prosperity …

Had McCain been elected, or had Obama proved a canny Clinton triangulator, we would never have gotten out of the bipartisan rut of massive borrowing, growing government, higher taxes, and unionized public employee regulators. But with Obama as the great liberal deliverer and with the masses scared to death of Him, the next president will inherit an America in catharsis. The future is uncertain, but at least now, after our cauterizing, we have some sort of chance to return to the old principles that might save us.

Lawfare 364

International banks that facilitate the financing of terrorism are being sued with satisfying results, according to this heartening report:

In a recent ruling that sent shockwaves through the Western financial world, the New York District Court revealed that Clearstream, a Luxembourg subsidiary of Deutsche Borse bank, is being sued by 1,000 victims of international terror attacks as part of a larger lawsuit against Iran.

Plaintiffs in the suit, known as Peterson vs. Iran, are suing Tehran over its alleged funding of Islamic Jihad, the Hezbollah paramilitary wing that perpetrated the 1983 US Marine Barracks bombing in Beirut. They allege that Clearstream, one of the world’s largest international securities depositories settling cross-border transactions, helped Iran move millions of dollars in frozen assets out of the US banking system. …

The lawsuit, brought under US anti-terror legislation, is one of a string of ongoing actions that legal experts say are exposing the role played by international banks in helping finance terror.

One of the largest and most influential of the antiterror funding suits is Almog vs. Arab Bank, filed by survivors and family members of victims of attacks by groups including Hamas, Palestinian Islamic Jihad and the Popular Front for the Liberation of Palestine.

While usually only US citizens can file complaints in US courts, in the case of Arab Bank the judge has allowed other nationals – including citizens from Israel, Russia, Ukraine and France – to join.

Arab Bank, which is headquartered in Amman, is accused of aiding and abetting terrorist acts by providing extensive banking services for several organizations that gave money to suicide bombers’ families.

Among those organizations is the Saudi Committee, which is alleged to have routed over $100 million raised in a Saudi-government-supported campaign to Palestinian terror groups.

According to Prof. Reuven Paz, an Israeli expert on Islamic movements who has been involved in 18 of the terror-funding lawsuits, Arab Bank acted as a “pipeline” that channeled funds to Gaza bank accounts. … [and] set up an administrative process whereby the relatives of suicide bombers had to receive official certification of their deceased family member’s “martyr” status before receiving funds.

According to attorney Richard D. Heideman – whose Washington firm Heideman Nudelman and Kalik, PC, represents American terror victims in several civil actions – although Arab Bank filed a motion to dismiss the suit in the US District Court of New York, the judge overruled that in a published opinion and has allowed the case to proceed. It is expected to go to trial.

And also according to Heideman, the German Commerzbank is being sued for “providing financial services to Hezbollah through various front organizations”. That case too is expected to go to trial.

Whatever the final outcome of these civil suits in terms of damages settlements for terror victims and their families, lawyers and regional experts agree they are raising public awareness about the global reach of terror funding, as well as making it increasingly harder for Hamas and Hezbollah to route funding through international banks.

Attorney Nitsana Darshan-Leitner of Tel Aviv-based NGO the Israel Law Center, who is involved in a number of civil cases against terror sponsors in the US courts, agrees with Heideman that “terror funding” lawsuits are effective. … She also pointed to several UK banks, including Barclays and Lloyds TSB, which had provided accounts to charities that were giving money to terror groups.

Those accounts were closed,” Darshan-Leitner said. “As a result of the lawsuits, banks stopped providing financial services to areas where terror groups work, like Gaza. So the suits have also affected Hamas’s government operations there because Hamas now can’t get money for its activities.”

Paz believes the Arab Bank action is so far the most effective of the civil lawsuits, in terms of its impact on terror funding. “One of the most successful fights against global Jihad has definitely been in the world of finance,” he said. “And one of the results is that terror groups have become more cautious about their financial activity… Arab Bank is in a panic… It is a very large private bank in the Arab world, and it is a very important basis of the Jordanian economy. … If Arab Bank collapses, it will hurt Jordan and the West Bank.”

The lawsuit against Arab Bank has forced it to freeze the accounts of the Saudi Committee, and is frustrating other Gulf states’ efforts to fund and reward terrorist activity.

It tried moving its “Hamas financial operations” to China, “where Hamas is not considered a terror group”, but “China’s policy on Hamas does not prevent the Bank of China being sued in the US courts under US antiterror legislation” and –

A  judge in the Supreme Court of the State of New York recently gave the green light to a lawsuit against the Bank of China by 84 victims of Hamas rocket attacks.

Because it has a branch in New York, the Bank of China must act according to US rules on terror funding.  And so  –

China has closed Hamas’s account. 

Nitsana Darshan-Leitner’s firm, Shurat HaDin, is also suing insurance companies:

Shurat HaDin aims to prevent blockade breach by bringing lawsuits in the US against companies offering services to participating ships. …

In letters to maritime insurance firms and satellite communications companies, Shurat HaDin … has warned that any companies that provide services that assist in the breach of the Israeli blockade on Gaza will be sued in the United States for aiding the Hamas terrorist organization.

Their warnings to insurance companies kept ships from participating in the last flotilla that was planned to break Israel’s blockade of Gaza.

The group has also sent letters to 30 of the top maritime insurance companies in the world announcing their intent to sue if they provide insurance to ships participating in the flotilla. “Every boat that travels from any country’s seaports or marinas needs to have maritime insurance,” explained Darshan-Leitner. “Without insurance, a ship is not permitted to set sail. Yet, the maritime insurance companies insuring the boats utilized by the Gaza Flotilla surely have no idea that the passenger boats that they are indemnifying are being used by the organizers to run the coastal blockade, violently challenge the IDF and smuggle weapons into Gaza. No legitimate insurance company nor its shareholders would reasonably agree to insure an expedition like that. We have begun to send letters placing the maritime insurance companies on notice concerning the Gaza Flotilla, and warning them that if they provide insurance … they themselves will be legally liable for any future terrorist attacks perpetrated by Hamas.”

And they are thinking of more ways to hamper sea-borne support for terrorists by using the law:

Shurat HaDin … recently approached mobile satellite services company Inmarsat– the only company that provides communications and navigations services to ships that sail in the region – requesting that they refuse to provide their services to ships participating in the flotilla. “We informed them that if they do so, they will be in violation of the American Neutrality Act, which prohibits aiding a group in their struggle against the military of an ally country,” said Darshan-Leitner. “Since Imarsat has offices in the US, the law binds them.The group has already received assurances from the world’s largest maritime insurance company, Lloyd’s, that they would not insure ships participating in the flotilla, as well as an agreement from the International Union of Marine Insurance that they would send their requests to all their members.

*

Spurred by success, Shurat HaDin are now threatening to sue Columbia University if they host Iran’s nasty President Ahmadinejad, according to this report in Commentary-contentions:

Columbia University has hosted Iranian President Ahmadinejad in years past, but the upcoming banquet it’s reportedly planning for the universally-loathed leader might not go as smoothly this time around.

An Israeli law center is vowing to hit Columbia University with massive lawsuits if it goes ahead with the banquet, according to a letter the legal group sent to university president Lee Bollinger …

The letter (read it here in full) declared and warned that –

Hosting Ahmadinejad at a banquet is not merely morally repulsive: it is illegal and will expose Columbia University and its officers to both criminal prosecution and civil liability to American citizens and others victimized by Iranian-sponsored terrorism.

Iran is officially designated under U.S. law as a state-sponsor of terrorism, as a proliferator of weapons of mass destruction and as a perpetrator of human rights abuses. Ahmadinejad is Iran’s chief executive and personally directs Iran’s terrorist and nuclear proliferation activities and human rights abuse. …

The planned Columbia University event for Ahmadinejad would constitute the type of seemingly innocuous material support that would render both Columbia University and you personally criminally and civilly liable notwithstanding any putative First Amendment claims.

Shurat HaDin demanded that the University cancel the event. “Otherwise, the group says it will ‘feel a moral obligation to take all measures permitted to ensure that the laws are enforced’.”

We wait to know if the event will be cancelled, and if it isn’t what will follow. We believe Shurat HaDin will carry out its threat, and we raise a brimming glass to everyone in that enterprising firm.

The national Ponzi scheme 153

Here’s a point of view we heartily endorse.

From a column at PajamasMedia by Kyle-Anne Shiver:

According to the commentariat, Governor Rick Perry has stepped into a pile of electoral cow manure. Perry had the unrivaled gall to tell the truth about Social Security — that the program is, by design, a Ponzi scheme.

Personally, I’d like to give Rick Perry a medal for courage and a laurel wreath for leadership. He has signaled his intention to speak truth boldly in terms real people can understand.

Of course, Social Security is essentially a Ponzi scheme, fully dependent upon adequate numbers of new “investors” (workers) to pay off prior “investors” (retirees). But this week, Reason delineated three major Social Security facts that make it far worse than a Ponzi scheme, and audaciously added that Rick Perry was “soft-pedaling” his rhetoric on the subject. From Reason:

One, a Ponzi scheme collects money from new investors and uses it to pay previous investors — minus a fee. But Social Security collects money from new investors, uses some of it to pay previous investors, and spends the surplus on programs for politically favored groups — minus the cost of supporting a massive bureaucracy. Over the years, trillions of dollars have been spent on these groups and bureaucrats.

Two, participation in Ponzi schemes is voluntary. Not so with Social Security. The government automatically withholds payroll taxes and “invests” them for you.

Three: When a Ponzi scheme can’t con new investors in sufficient numbers to pay the previous investors, it collapses. But when Social Security runs low on investors — also called poor working stiffs — it raises taxes.”

When Rick Perry has the gumption to responsibly point this out in public, we ought to be sending the guy thank you notes for clarity and leadership. …

Rick Perry ought to be considered a one-man Reformation truth-squad every time he utters the phrase “Ponzi scheme” to foaming-at-the-mouth liberal pontificators.

Charles Krauthammer is also a Social Security truth-teller. In March, he wrote of Lew’s duplicitous attempt to shore up Obama’s Social Security propaganda, spelling out the Reformation’s argument in demographic enlightenment format:

But demography is destiny. The ratio of workers to retirees is shrinking year by year. Instead of Social Security producing annual surpluses that reduce the federal deficit, it is now producing shortfalls that increase the federal deficit — $37 billion in 2010. It will only get worse as the baby boomers retire.” …

Choices have consequences. And the millions of Americans’ choices not to bear many children, coupled with irresponsible political choices to raid the Social Security trust fund, have rendered “the greatest Ponzi scheme ever devised” just one more bitter fruit in the diminishing Keynesian economist’s orchard.

The fertility-rate in the US is 2.1, the rate necessary for population stability. Demographically, Europe is in a far worse condition. Every European country has a diminishing fertility-rate. And every European country is a welfare state – ie a socialist state. Socialism itself is a Ponzi scheme. It cannot work, it does not work.

Footnote: Of course we deplore Rick Perry’s belief in creationism. But there is no GOP candidate who does not claim to believe in a creator god. Romney and Huntsman are Mormons. Bachmann is a Lutheran. Santorum and Gingrich are Catholics. Paul and Cain are Baptists. It will be a long time yet before the United States has a self-declared atheist president.

Choose to be free 147

Milton Friedman, champion of the Consumer, delights an audience and confounds TV host Phil Donahue, with his explanation of how Ralph Nader did harm by trying to do good, and why the free market ought to be allowed to work. The video was made way back in 1979, but what the great economist says will never become outdated.

Posted under Commentary, Economics, United States by Jillian Becker on Sunday, August 28, 2011

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A traitorous deal 186

China is becoming militarily stronger, and the US militarily weaker.

An article in Investor’s Business Daily suggests that Obama is granting this alteration in the balance of power to the Chinese in exchange for their indulgence as the US’s chief creditors:

The White House suddenly announced it wouldn’t sell F-16 jets to Taiwan — a huge strategic favor to the Chinese. Was there a quid pro quo?

Explicitly or not, the U.S. seems to be offering them a deal — buy our bonds and pay for our out-of-control spending, and we’ll let you build a massive military presence and expand your influence in the Western Pacific.

China might see that as a good investment, one that will deliver them one of their much-cherished, long-term strategic goals: a weaker U.S. military.

That nation is already challenging the U.S., increasing defense spending at double-digit rates year after year, in what a U.S. Air Force website recently called “the most remarkable expansion of military power since the U.S. geared up for World War II” … is busy building a blue-water navy to challenge America, and just this month it launched its first aircraft carrier, with plans for more. It already has 2 million men under arms — a third more than the U.S.

At the same time, it’s building its unconventional warfare capabilities, extensively testing anti-satellite weapons and … engaging in a massive, five-year cyberattack on at least 50 U.S. government agencies and corporations.

China’s new generation of anti-ship and anti-aircraft missiles, submarines, sophisticated new radar and minelayers is premised on … forcing us out of East Asia, leaving allies such as Taiwan, Japan and South Korea unprotected.

Some deal. They buy our bonds while we watch their defense buildup. Clearly, China’s preparing for conflict. What are we preparing for? National bankruptcy?

On China rising to space superiority, this report comes from the Heritage Foundation:

As NASA sends its shuttles to museums, China is making great strides in its space program—with preparations under way for the launch of a Chinese spacelab in the next few weeks. These advances are beginning to threaten U.S. space superiority and America’s ability to support its friends and allies and to deter aggression. …

In the past several years, China’s space efforts have become increasingly prominent. …

The PLA [People’s Liberation Army] has concluded that the high ground of space is essential to the information gathering, transmission, and exploitation necessary to fight and win future wars. …

As Beijing expands its space program, the United States must maintain and expand robust space capabilities, develop alternatives to space-based systems to reduce American vulnerability …  Only then will the United States be able to maintain its superiority in space …

Hasn’t that already been abandoned?  NASA’s mission now is “to improve relations with the Muslim world“, by order of President Obama.

Which will be worse, the US falling under Islam and sharia law, or China and communism?

To prevent either catastrophe, the US needs a president who will defend the nation – on earth and all around it.

How the government is killing jobs 418

Any government interference in the market  is bad for the economy. The Obama administration is interfering massively. The result is high unemployment.

Regulation and the new health legislation are destroying businesses, or driving them to operate outside the law – which means the rule of law itself is weakened.

Patrick Richardson writes at PajamasMedia:

CKE owns or franchises 3,182 restaurants under the Carl’s Jr. and Hardee’s brand names nationwide, employing more than 70,000. Each new restaurant generates roughly 25 new jobs and pumps more than $1 million into the surrounding community.

According to the release, to comply with just one of the hundreds of new regulations in the health insurance law CKE will be forced to spend approximately $1.5 million to replace all restaurant menus. That equals 17 percent of what the company invested in new restaurants in 2010. …

Those numbers were provided by CKE’s CEO Andy Puzder. In a video sent out with the release, Pudzer said unknowns — in particular, health care — are stifling job growth:

“You generally try to come up with a five-year business plan. You have to know what your expenses are going to be and generally know what your revenue will be. People right now are very worried about taxes because the president keeps talking about raising taxes so it’s very difficult to model that in the forecast. The uncertainty in the businesses community arises from a number of factors: taxes, energy and primarily health care. 

Health care is probably the most significant unknown at the moment. People are unsure about how much it will impact their business, but they will know it will be significant and it will be negative. It’s very hard to model the cost because the bill is so complex. The range [CKE’s economic forecasters] gave us on our health care costs increasing was between $7.3 and $35.1 million. We spent about $9 million last year building new restaurants. That would be totally wiped out.”

Puzder said he was given a best guess of $18 million on increased health care costs, double what they spent creating new restaurants and new jobs last year. …

It’s not just health care killing jobs: state and federal regulations can amount to as much as 50 cents on every dollar a business makes, according to Jennifer James of Build with Conscience in California. She said the cost of regulation per employee to them each year is about $20,000:

“We would like to hire three or four more guys, easy. We pay $15-26 per hour for new laborers and generally hire inexperienced young workers and train them because the cost of experienced men is too high. We’re not able to take on extremely qualified people, so we train young kids in the trades.

[But] she said between increased health care costs and the contractor fees, they simply can’t afford to hire. She said licensing fees in California are so high many contractors are simply not paying them and working under the table. … Fees are so high and the number of agents to enforce the law so low that it is a better risk to operating without a license for many contractors. …

Annette Logsdon from Watertite Deck Coatings, also in California, said taxes, fees, and health care are killing them as well. She said they grossed about $400,000 last year, but workers’ compensation was $21,600 for the year — nearly 6 percent of gross:

“The federal government is killing us on payroll taxes.” …

Additionally, regulations are hitting them on the inventory side. All their raw material suppliers have raised prices because government regulations have driven up their costs …

All of the business owners had basically one message: “get out of our way.” It’s clear that the more regulation the government heaps on business, the fewer jobs will be created.

The disastrous end of the welfare state 267

The following extracts are from an essay on the failure of the welfare state in Europe by James Roberts and J.D. Foster:

Europe’s socialist (or “social democratic”) welfare state is collapsing under the load of unsustainable debt. There is no chance European politicians will ever make good on the many costly and unfunded entitlements they have promised their citizens.

The fundamental problem in the European Union is a monetary policy failure. In conjunction with the debilitating effects of the social welfare state, this has led to a broad economic collapse among the lesser states — notably the PIIGS (Portugal, Ireland, Italy [though not really a a “lesser state” – JB] , Greece, and Spain), but also some of the EU’s newer members — and it threatens to envelop the greater states.

For years, this collapse among the lesser states was disguised by debt accumulation — countries would borrow (at de facto concessionary interest rates) to overcome their inability to generate adequate income by producing and selling. The lack of actual and prospective growth combined with growing debt burdens has led to a long-term solvency crisis, which has been bubbling up of late into a series of liquidity crises.

The monetary and fiscal situation in the EU is increasingly unmanageable, as the debt burdens grow and growth prospects diminish further. …

The vision of a “euro zone” was ill-conceived from the start. It is now increasingly acknowledged that Brussels’ lack of control over social spending, especially in the PIIGS, doomed it from the beginning. Agreements (e.g., the Maastricht Treaty) to stay within EU member government spending targets were routinely flouted, even by the largest EU countries. …

The strong got stronger, while others, like Italy and Greece, stood still or even retreated on policies that would have sustained their international competitiveness. …

Southern Europeans kept borrowing in low-interest-rate euros (which simultaneously inflated housing bubbles in their countries) until, in Margaret Thatcher’s words, their socialist governments “ran out of other peoples’ money!” As a result, some of Europe’s large private banks now hold toxic quantities of sovereign debt issued by the PIIGS and are threatened with extinction through serial defaults …

For decades now, one of the most tragic costs of the European welfare state has been Europe’s structural unemployment, especially among the young, combined with welfare payments that turned unemployment into an acceptable — even desirable — status, while stripping those affected of their dignity and sense of responsibility. The recent riots in the U.K. are an ominous reflection of this failure.

One of the key questions now is: How much longer will workers and taxpayers in Germany and other relatively more fiscally prudent countries in northern Europe be willing to work into their late 60s to subsidize (via eurozone bailouts and managed defaults) their neighbors in southern Europe so that the latter can retire early in their 50s on generous state-funded pensions and go to the beach? 

How many times does it have to be proved that socialism does not work?

Free-market economists – the giants among them, von Mises, Hayek, Milton Friedman – demonstrate in theory that socialist economics cannot work. Their reasoning is not hard to follow, and entirely convincing. We human beings can use our faculty of reason – unique to our species –  to save ourselves from having to try out risky ideas in reality. But millions among us want to keep trying out the failed redistributive policies of socialist economics, experimenting with real lives, courting disaster over and over again.

Roberts and Foster grimly point out:

For the U.S., Europe is the ultimate object lesson — a warning of what happens when government is allowed to run wild, with the resulting loss of liberty, and fiscal debt.

An object lesson. A warning. But Obama, his circle of advisers and appointees, and the millions who persist in voting for socialism – aka “stimulus”, “entitlements”, “taxing the rich”  – remain obstinately deaf and blind to it.

Tyranny American-style 117

An inspector from the Pennsylvania Department of Agriculture raided the fish fry at St. Cecilia’s Catholic Church in Rochester. He had been there for his annual inspection of the church’s kitchen, but … he espied an elderly parishioner unwrapping some pies.  He swooped. Would those by any chance be homemade pies?

They were. Four ladies had made each her favorite pie. They’d brought them to the church to sell at a dollar a slice. The inspector stopped them doing so, telling them that if they did they’d be committing a crime. In Pennsylvania, it is illegal to bake a pie in a home kitchen for sale at a church fundraiser.

The inspector informed the ladies they could continue baking pies [for sale] at home if each paid a $35 dollar fee for him to come round to her home and certify her kitchen as state-compliant.

Mark Steyn tells the story in After America: Get Ready for Armageddon. He also tells this one:

Seven-year-old Julie Murphy was selling lemonade in Portland, Oregon, when two officers demanded to see her “temporary restaurant license” which would have cost her $120. When she failed to produce it, they threatend her with a $500 fine, and also made her cry.

And this one:

For their morning customers the Collins family had been putting a coffee pot and doughnuts on the counter of their hardware store for fifteen years…

But in California that’s an illegal act. The permit mullahs told Randy Collins that he needed to install stainless steel sinks with hot and cold water and a prep kitchen to handle  the doughnuts.

Mr Collins was submissive.

“We want to be in compliance with the law” [he said].

Why?”  Mark Steyn asks.

When the law says it’s illegal for a storekeeper to offer his customer a cup of coffee, you should be proud to be in non-compliance. Otherwise, what the hell did you guys bother holding a revolution for?

This is the reality of small business in America today. You don’t make the rules, you don’t get to vote for people who make the rules. But you have to work harder, pay more taxes, buy more permits, fill in more paperwork, contribute to the growth of an ever less favorable business environment, and prostrate yourself before the Commissar of Community Services – all for the privilege of taking home less and less money.

Mark Steyn calls it tyranny. It is.

Another example from a different source:

When California’s elected officials come back from their month-long recess they face a mountain of proposed legislation (almost 900 bills are lined up and waiting), including a new law (SB432) that would require hotels to eliminate flat sheets. Not having fitted sheets on hotel beds would now be a crime in California. This is not a joke.

California, the state trying to deal with a massive $26 BILLION dollar debt, is considering a law that some hospitality industry experts claim would add an estimated $15 to $30 million dollars in costs to an already hurting hotel industry. The low-end estimate of fifteen million is the projected cost to purchase new fitted sheets for the 550,000hotel beds in the state. Of course the hospitality industry is claiming that these added costs will hurt their business and put jobs at risk.

The fitted-sheet bill is the brainchild of State Senator Kevin De Leon (a Democrat from Los Angeles), whose mother suffered back pains while working as a hotel maid. Kevin has been quoted as saying this was “an issue close to my heart.” It is also a bill that has the support of Big Labor. …

We are now going to make it a crime in California not to use a fitted sheet? Really?

The desirability or undesirability of something is not a good reason to legislate for or against it. There should be no more laws than are frugally necessary (administered as rigorously as possible). To make thousands of petty laws that are easy to break through ignorance, incapacity, or bewilderment is to bring the law into contempt.

It’s debatable whether there should be any regulatory laws whatsoever. They are inevitably oppressive. They establish a niggling, nagging, tyranny-of-interference.

Tyranny American-style.

It is communitarian, a sneaky form of collectivization. It is job-killing, impoverishing. Enlarging the reach and power of the state, it is dictatorial.

And it  is Obama’s preferred method of government. He is using the Environmental Protection Agency (EPA) to implement his dictatorial will. The EPA is continually churning out thousands of regulations to complicate and hamper work in agriculture, animal farming, industry, construction … everything. With this Stasi-like agency, he by-passes Congress.

The only good point made by Jon Huntsman in a recent debate among GOP candidates for the presidency, was that the EPA must be abolished.

Poverty in America 156

“The poorest Americans today live a better life than all but the richest persons a hundred years ago.”

That’s a quotation from a study of poverty in America by the Heritage Foundation.

The study found that the officially-designated poor enjoy a high standard of living. Read the whole illuminating study here.

A summary of its most important findings:

The typical poor household, as defined by the government, has a car and air conditioning, two color televisions, cable or satellite TV, a DVD player, and a VCR. If there are children, especially boys, the family has a game system, such as an Xbox or PlayStation.

In the kitchen, the household has a refrigerator, an oven and stove, and a microwave. Other household conveniences include a clothes washer, clothes dryer, ceiling fans, a cordless phone, and a coffee maker.

The home of the typical poor family is in good repair and is not overcrowded. In fact, the typical average poor American has more living space in his home than the average (non-poor) European has.

By its own report, the typical poor family was not hungry, was able to obtain medical care when needed, and had sufficient funds during the past year to meet all essential needs.

This happy state of affairs is changing as the present socialist government makes the nation poorer.

Obama promised “change” without describing it’s nature, so each voter could imagine it to be whatever he or she hoped for.

Now we know what he meant.

Low intensity warfare in France 39

The rioting in England that we wrote about yesterday (see our post Anarchy immediately below) is not being perpetrated by members of any one particular ethnic or religious group. The leftist anti-Semitic Guardian newspaper singled out just one “ethnicity” to put a name to, that of three or four Hasidic Jews who were watching the violence in Tottenham and, along with others, were “jeering at the police”.

The arsonists, vandals, and looters are said to be mostly young and male, and of mixed backgrounds. They are Children of the Welfare State, lacking none of the basic amenities of life except, in many cases, fathers. But they have daddy-the-state to support them. Daddy-the-state does not put every luxury their hearts desire within their reach, but a riot can.

There is nothing particularly British about their cushioned condition or their easy resort to violence. Their kind is to be found almost anywhere in Europe. At the drop of an entitlement they are likely to riot, as they do here and there from time to time, on one pretext or another or none at all.

In one European country, however, the violence is continual – and one religious group is responsible for it.      

It is the subject of an essay by Nidra Poller titled A French Intifada, published in the Winter 2011 issue of the Middle East Quarterly, a shocking account of the destructive and terrifying lawlessness that has become endemic in France.

Quoting from it doesn’t do it justice; it needs to be read in full. But here is part of what she writes:

A process described by some as the Islamization of Europe, by others as the failure of Europeans to integrate Muslim immigrants, has reached a breaking point in France. One of the most troubling manifestations of this discord is the development of a particular type of violence that is more than the sum of its parts. A sampling of this year’s news reports reads like a catalogue of stomping, stabbing, shooting, torching, and sacking; attacks on teachers, policemen, firemen, old ladies, and modest retirees; turf wars, tribal fights, murder over women, over attitude, over nothing; dead youths, murderous youths, bodies scattered across a national battlefield.

Is there a connection between the endless series of seemingly disparate criminal incidents and markers openly displayed in insurrectional riots and demonstrations — kaffiyeh face masks, Hezbollah flags, intifada slogans, Islamic chants? A general French tendency to withhold information and a deliberate decision to avoid ethnic and religious symbols leads to white noise coverage of criminality. Names, photos, and background information about perpetrators, suspects, and victims are usually suppressed, especially those that might create a negative image of Muslims.

Yet there is ample evidence that immigration has brought specifically Islamic antipathy to Jews, contempt for Western values, and other antisocial attitudes reinforced by religious zeal and aggravated by the clash between an authoritarian family structure and permissive French society. …

The French republic is in danger as the anti-Jewish thuggery has been extended to the general population, the “dirty Frenchies” and “filthy whities.”

The twisted logic and adulterated ethics devised to blame Israel for failing to bring peace on earth has come back to haunt the French. A compassionate discourse that excuses Palestinian atrocities against Israeli civilians as a reaction to “injustice” also excuses French domestic criminality as payback for colonization, discrimination, exclusion, unemployment, and police harassment. …   The “disproportionate reaction” accusation played like the ace of spades against Israel turns into a joker when riot police are portrayed as Robocops oppressing a “Palestinized” immigrant population. …

Palestinian terrorists are called “militants,” Gaza Flotilla jihadists are presented as “humanitarians,” and the young French criminals are “youths“. This deceivingly generic term used to mask the identity of local Maghrebi and African thugs is a paradoxical translation of the Arabic shabab. Indeed, it is not rare to read of a “36-year-old adult youth” involved in a rumble or suspected of murder. …

During the 2005 uprising, when rioting Muslim youths torched cars and public buildings in housing projects throughout the country and clashed with the security forces trying to restore law and order, Parisians believed they were safe inside invisible walls as fires burned on the other side of the ring road. “It’s just the banlieue [working class suburb],” they said. A second round of discourse about the urgent need to improve housing, infrastructure, transportation, and job opportunities circumscribed the problem. Before the year was out, flames were rising in the center of the city and the banlieue problems spread like wildfire.

Five years later … the discourse is similarly sterile. Newspapers string out a litany of violent incidents in a repetition of stock phrases and opaque vocabulary. Honey-voiced newscasters warble little tunes of tribal violence as if turf wars and fatal stabbings in retaliation for a look, an attitude, or a woman were all in a day’s work. Bucolic place names redolent with memories of Impressionist boating parties are now the sites of bloody murder. Fatal stabbings in schools named after resistance heroes are attributed to the influence of video games and a hunger for consumer products stimulated by capitalism. …

She lists examples of  “bloody murders”  as reported with insufficient information by the media.

What happened next? Were the circumstances elucidated? The perpetrators apprehended? Convicted? We may never know. Convinced that the identity of culprits is withheld for ideological reasons, readers do the detective work with telltale clues and exasperating similarities. Youths, knives, the banlieue? Twenty against one? Drug wars? Turf wars? Gang fights? The puzzled citizen situates each incident somewhere on a line traced from the intimidating rowdiness observed in public to mass revolts seen on television …

Delinquent immigrants are acquitted of responsibility for their antisocial behavior and self-destructive strategies. …  Housing projects are dilapidated by their own delinquent residents only to be displayed as proof of social injustice. …

No matter how much is done or given, it is never enough; no matter how wild the behavior, it is always explained away. Here, there, and everywhere, ethical boundaries are erased and logic surrenders to magical thinking. When mothers offer their children to die as shahids … the very horror of their vengeance is held as a measure of the degree of oppression they endure. In France, every form of brutality, including the murder of Ilan Halimi  a young French Jew kidnapped by a banlieue gang in January 2006 and tortured to death over a period of three weeks — is attributed to some form of “exclusion.”  … Lawyers for the defense organized press conferences and wrote op-eds to deny banlieue anti-Semitism and portray their clients as misguided underprivileged youths. …

No French outlet would touch the “Hamas on the Seine” report by photojournalist Jean-Paul Ney, published …  on May 31, 2010, describing enraged kaffiyeh-masked, pro-Palestinians chanting, “Zionist sellout media,” “Jews to the ovens,” “F–k France,” “Sarkozy the little Jew,” “Obama the Jew’s n —-r”,  repeatedly breaking police lines, determined to reach the Israeli embassy and vent their rage over the Gaza flotilla incident. Joined by anarchist “black-blocks,” the insurgents destroyed property, threw paving stones at the police, and wreaked havoc for several hours at the Champs Elysées Circle. Ney distinctly heard orders broadcast to the riot police: “Don’t try to stop them.” 

The 2005 riots were triggered by the death of two minors who sought refuge in an electrical substation, allegedly pursued by the police, allegedly for no good reason. In November 2007, several policemen were wounded by gunfire in a battle with some 200 youths in Villiers le Bel (Val d’Oise) after two youths without helmets sped down the street on a prohibited mini-cycle, crashed into a police car, and were killed. …  After a similar accident in Woippy, a banlieue of Metz, gendarmes were pelted with stones, fourteen vehicles including a bus were torched, telephone booths and a school were sacked. These are but a few of many incidents where youths in stolen cars or motorcycles, running away from the police, crash and kill themselves.

Yet, no matter how far-fetched the version of the “aggrieved” party, it always takes precedence over the official version in French media. Any police investigation is, by the media’s definition, suspect.  …

The media offered a brief tour when the police raided a housing project in the Parisian banlieue of Sevran (Seine Saint Denis) controlled by drug dealers. Graffiti arrows indicate “shops”; residents tell how they pass through checkpoints to access their buildings, and TV cameramen were lucky to escape with their footage. “Militants” responded to the raid with the now-familiar torching, sacking, and shooting at policemen. Government promises to enforce the law provoke an outcry from compassionate sociologists, left-wing magistrates and mayors, members of do-good associations who protest that “repression is not the solution.”Imposing undue restraint on the police has simply emboldened their adversaries. Over 5,000 were injured in the line of duty in 2009, and in January-February 2010, some 1,100. In recent incidents, police have been surrounded, pelted with paving stones, kicked, punched, hit on the head with hammers, humiliated, and treated like mugging victims, not agents of law enforcement. …

Contrary to expectations, the government did not slip away for the August vacation …  The president … announced a series of tough measures, and dared to link crime with immigration. Not all crime, not all immigrants. But he broke the taboo, simply by stating the obvious and followed with a promise of harsh measures for criminals who shoot at the police. Moreover, naturalized cop-killers will lose their citizenship. Tax officials will be sent into the projects to crack down on people living in luxury while on the dole. The drug market will be dismantled. Severe delinquency, polygamy, and female circumcision will also be grounds for withdrawal of nationality (this provision was subsequently withdrawn). …

The government’s straight talk has shaken France to the timbers. President Sarkozy was accused of cynically fishing for right-leaning-populist Front National voters, replaying the disgraceful Vichy past collaboration, separating the French-French from the foreign-French (akin to death-camp selections) …

Not a day goes by without a barrage of statements condemning the president. Former Socialist prime minister Michel Rocard — remembered for declaring in the early 1980s that “France cannot take in all the world’s misery” — stuck the Nazi label on President Sarkozy and accused him of fomenting civil war. Every opposition leader big or small took up the keyboard or microphone to vilify the president in the most emphatic terms. No Holocaust metaphor is left unturned. …  The rhetoric has come full circle: “immigrants” (meaning Arab-Muslim and sub-Saharan Africans) are today’s Jews when in fact the people who are now persecuting Jews belong to that lawless class loosely defined as “immigrants.”

The media are giving wall-to-wall coverage to the president’s most severe critics while limiting the defense of strict law enforcement to officials, giving the impression that the government stands alone — the 2 percent increase in approval ratings for the president and Prime Minister François Fillon notwithstanding. …

Hundreds of punk jihadists screaming “F–k France” can go amok but no one has the right to say they belong to a specific group or current. No one is even allowed to speculate on what they might have in common with other lawbreakers — unless one portrays them as hapless victims of injustice. …

Every law enforcement effort entails the danger of igniting a generalized insurrection on an overwhelming scale. It is easy to scold President Sarkozy as did The New York Times, parroting the French leftists, or on the other hand, to mock the president with a long list of unfulfilled law and order promises. But it would be wiser to ask why authorities in this western European nation with so much to lose keep mollifying antagonistic elements in the vain hope of avoiding a confrontation. 

How long can this go on? In France and all the Western European countries, anger is growing among the indigenous populations. Anywhere, everywhere, explosions of violence could become so sustained as to develop into civil wars. The continual conflict in France could already be described as “low intensity warfare”  – a sub-heading in Nidra Poller’s essay.

What might save the Europeans, paradoxically, is the economic collapse of their welfare states. If governments have no choice but to stop providing housing, health care, monetary hand-outs, their countries may no longer attract Muslim immigrants from the miserable Third World.

 

Post Script: This morning there are reports from England of residents turning out to protect their towns from advancing mobs of vandals, whole streets of shops being boarded up, and – particularly to be noted –  synagogues having to be protected by volunteers. The police continue to be defied with impunity.    

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