Tony Blair: Reductio ad Absurdum

In the Midst of the Chaos which is currently unfolding in Iraq, there comes our old Tony Blair (the former British Prime Minister) and makes this profound Statement on Sky News: 

"You can carry on debating about whether it was right or wrong what we did in 2003 but whatever had been done, you were always going to have a problem of deep instability in the region and in Iraq,..."

 



A very happy Tony Blair giving one of his „profound” Explanations

One might call Tony Blair's Statement to be just plain idiotic.  But that would be generous, we think.  Tony Blair's Statement is just plain arrogant and it demonstrates the Irresponsibility which he displayed as Prime Minister, in embarking, along with George W. Bush into an Adventure in Iraq which cost, nobody really knows how much it cost, but to say that it cost in Excess of One Trillion U. S. Dollars would be by no Means an Exaggeration and, more importantly, which cost Hundreds of British Lives, Thousands of American Lives and Tens if not Hundreds of Thousands of Iraqi and other Lives.

If a lowly, inconsequential Employee at some non descript Fast Food Chain would have given to his Boss the Response which Tony Blair gave as an Excuse to Fox News, he would have been likely fired on the Spot and rightly so.

But Tony Blair's Fate is different.  He has been rewarded for his Irresponsibility not only by getting invited to countless Television and other Interviews, but also landing huge, huge Contracts which have earned him enormous Sums of Money.

Failure pays would be the Reductio ad Absurdum which Tony Blair's Case demonstrates.

 

A Step in the Right Direction: President Obama requests a Congressional Resolution on Syria

Unexpectedly the News Wires carried the White House Announcement that President Obama has decided to seek Congressional Approval Prior to bombing Syria or engaging in any Type of Military Conflict with Syria.

http://worldnews.nbcnews.com/_news/2013/08/31/20270696-obama-will-seek-congressional-approval-before-any-military-action-against-syria?lite

This would appear to signal a signficant Departure from what has been the Norm for several Prior Administrations, Reagan, Bush Sr., Clinton and, most recently and most disastruously, Bush Jr., who managed to get the United States not in one but two Wars concurrently, one of which is still being fought.

By a strict Interpretation of the Constitution, the Power to declare War rests with Congress. Article 1, Section 8,

„The Congress shall have Power...to declare War.”

This was something which was observed with fairly consistent Regularity until 1941, when Congress declared War on Japan (8 December 1941) followed by Declarations of War on Germany and Italy.  There was even a Time, including up to the Vietnam War Era and beyond, when, officially, such Events were not referred to as Wars but rather Conflicts; obviously, because no War had been declared by Congress and, how could you be involved in a War if there is no Declaration of War?  Duhhhhh!

Over the Course of History, going to War has never been an easy Thing to get into and, often, not an easy Thing to get out of either, the Latter, even more so.

Witness the still on going Conflict in Afghanistan, the Mess in Iraq which is still going on, or earlier, the Vietnam Saga.  Back to Vietnam in a Moment.  First an interesting Footnote.  Although nobody thinks of it in those Terms, from a purely technical Point of View, until today, there is no Peace Treaty which has ever been signed between the United States and Japan or, for that Matter, between the United States and Germany or Italy ending World War II.

Vietnam.  Vietnam was a Situation all its own.  The Involvement began with President Kennedy and deepened under President Johnson.  Faced with a broadening Conflict, President Johnson went to Congress and obtained a Resolution (much as President Obama appears to be seeking now), known as „The Gulf of Tonkin Resolution” (7 August 1964) and proceded to justify all further Actions during the Vietnam Conflict based upon that Resolution.  Only two Senators (Wayne Morse was one of them), voted against it.  There was considerable Debate afterwards over what the Gulf of Tonkin Resolution authorised and what it didn't but one Thing is indisputable; President Johnson had a Resolution.  Nobody after him bothered, even if it meant getting embroiled into Conflicts which were just as messy, or even messier, in Terms of what President Obama was later to refer to as „Blood and Treasure.”

 

The Gulf of Tonkin Resolution

The Situation in Syria is complex.  If one were to listen to Turkish Prime Minister Recep Tayyip Erdoğan, President Assad of Syria should forcefully be removed immediately, by the United States, of course, with Turkey in a „Supporting Role.”  But it may be easier to speak from Ankara, especially if one doesn't have to pay the Bills.

President Bashar al Assad of Syria is not an Angel.  Far from one.  The Mess in his Country is enormous.  So is the Mess in his neighboring Countries, Egypt, Iraq and, yes, Turkey as well, to name a Few.

Despite what the Evidence laid out before President Obama may indicate, the Situation is complex and laden with Perils.  Moreover, as suggested by German Philosopher and Journalist Peter Scholl-Latour, the Evidence may lead different People to reach different Conclusions and this, with the United Nations Inspectors' Report yet to be made (Peter Scholl-Latour characterises a possible Military Intervention in Syria as senseless and dangerous).

http://www.tz-online.de/aktuelles/politik/scholl-latour-analysiert-syrien-drama-der-militaerschlag-sinnlos-gefaehrlich-tz-3081517.html

(in German)

But, back to President Obama.  Earlier, Critics noted that after „drawing a Line in the Sand” with Syria, he was not left with any good Choices.

As President Obama gets ready to head to Moscow, where the Chinese and others, not to mention President Putin, will also be, to take part in the 2013 G-20 Conference, the Decision to seek a Congressional Resolution on Syria effectively moves the Target Date from last Thursday (as it was urged on President Obama by some), to at least September 9, when Congress is scheduled to return to Washington after a „well deserved” Vacation.  Prime Minister David Cameron who was required to get a Resolution of Approval from the British House of Commons before committing to Military Action against Syria, surprised many, including, not the least of all, himself, by failing to get it.

Perhaps it would be nice for someone to send a Note to Turkish Prime Minister Recep Tayyip Erdoğan informing him that if he wishes to remove President Bashar al Assad all on his own, he is welcome to do it but, otherwise, he just needs to cool his Heels and wait until September 9 or maybe a Little later.

Why don't they tell us?

There has been a steady Stream of Bad News from Washington lately, having to do with Surveillance, Privacy and related Issues.

There was the Associated Press Reporters Story.

Then there were the IRS Stories, involving, of all People, some Tea Party Groups seeking Tax Exempt Status.

Overnight, last Night, the Story regarding the Gathering of Telephone Call Logs by the National Security Agency from Verizon broke out.  Quickly rumours spread that other Carriers, notably A T & T are involved also.

http://usnews.nbcnews.com/_news/2013/06/06/18796204-nsa-snooping-has-foiled-multiple-terror-plots-feinstein?lite

Now it further appears that an enormous Amount of Internet Traffic, eMails, Web Site Visits, we don't know exactly the Extent of it, is under Surveillance also.

http://www.nytimes.com/2013/06/07/us/nsa-verizon-calls.html?nl=todaysheadlines&emc=edit_th_20130607&_r=0

http://openchannel.nbcnews.com/_news/2013/06/06/18809021-sources-us-intelligence-agencies-tap-servers-of-top-internet-companies?lite

There is Legal Precedent, for those of us who have studied Law for having serious Concerns regarding something called „Overreach.”  The Reason the Government has given for obtaining Secret Court Orders for such extraordinary Surveillance, unprecedented in American History is Terrorism.  And, Terrorism is a serious Issue, witness the recent Events in Boston, not to mention 9/11 and everything else that has happened in between.  Nonetheless, many are beginning to look at whether the War against Terrorism can be achieved without resorting to Secrecy when undertaking such extraordinary Measures which many also view, correctly, as Invasions of Privacy; something which the American Constitution and American Tradition have fiercely guarded for over Two Centuries and something which has become a Model, an Ideal, a Beacon for the Rest of the World.  In other Words, the War against Terrorism can be used to justify many Government Actions but not all of them in this Context.

To be sure, the Roots of these Kinds of Actions go back to the (George W.) Bush Administration.  But President's Obama's Administration has to shoulder the Responsibility and, right now, it appears more and more likely that Attorney General Eric Holder will be asked to fall on his own Sword.  But that may only be a Stop Gap Measure unless President Obama confronts the Issue and also establishes a Model, a Policy for successive Administrations to follow.

The simple Question is this:  why don't they tell us beforehand?

Senator Lindsey Graham (R., North Carolina) stated today that he is himself a Verizon Customer and if the Government was keeping track on his Calls to Waziristan, we think he said Waziristan, he would not have a Problem with it.  Neither would we or anyone else, we don't think, but would it not be appropriate to tell Senator Graham and everyone else that the National Security Agency would be doing this?  Then everybody knows and understands that Telephone Calls, Internet Traffic, whatever, is being subjected to some Sort of Surveillance and that can be the End of that, rather than the Facts coming out Slice by Slice in what one might refer to as a „Salami Tactic.”

Likewise, it may all be well and good that Senator Dianne Feinstein (D., California) states that all this was cleared and approved in Advance Years ago but, the Issue seems to be of sufficient Magnitude to where one has the Right to ask, why were the American People not informed this was going on?  It is difficult, we believe, to formulate an Argument that Secrecy adds Value to the Program; Carrier Pigeons and other antiquated Methods are not alternatives which Terrorists and Enemies of the United States could use with much Success.

 

Secretary of State John Kerry - Attempting to diffuse Tensions with North Korea and Elsewhere

Former Massachusetts Senator, now Secretary of State John Kerry, was selected by President Obama at the Beginning of the Year to succeed Hillary Clinton's turbulent Reign.

John Kerry had come very close to becoming President of the United States, far closer than Hillary Clinton.  He lost the Election to George W. Bush in 2004 by only 34 or 35 Electoral Votes.  But lost he did and now, as soon as he became Secretary of State, one could sense the Difference in Tone which he established from the Onset.  He went to Afghanistan, an unsteady Ally which, in the Words of President Obama cost the United States „Blood and Treasure” in a non ostentatious Military Plane, rather than the Luxury Jetliner which Secretary Clinton relentlessly used during her Tenure.

 John Kerry arriving on a Military Plane in Kabul, Afghanistan for Talks with President Karzai

(February 2013)

Hillary Clinton arriving on the State Department's Luxurious Jetliner in Kabul, Afghanistan

for the Inauguration of President Karzai 

(Archive Photo)

Instead of „lecturing” President Karzai and letting a bad Situation becoming worse, Secretary of State Kerry showed real Diplomacy by seeking to calm down not only President Karzai but the entire Afghanistan Situation which remains extremely volatile and one in which the United States has decided, wisely, not to aimlessly throw any more „Blood and Treasure.”

But the Statemanship of Secretary of State Kerry and what distinguishes him sharply from former Secretary Clinton has become even more evident in recent Days, with the rapidly escalating Tensions with North Korea, where a Dictatorial Regime makes anything possible.

As Korean Dictator Kim Jong-Un unleashed one Verbal Escalation after another against the United States (and against South Korea as well), the Administration initially followed a Clintonesque „Tit for Tat” Series of Responses.  Then, the Secretary of State intervened.

He wisely saw that nothing good can come out of this, with Kim Jong-Un possibly willing to risk it all, including Nuclear Weapons, for a Conflict which the United States does not want and does not need.  Following a Series of uninterrupted Escalations and Threats, which still continue, North Korea has closed the Rajin-Sonbong Special Economic Zone to South Korea and, on Friday 5 April recommended that Germany and Russia, among other Countries, evacuate their Embassies in Pyonyang, the Capital of North Korea (Interestingly, we do not know if North Korea has asked China to evacuate its Embassy).

The Tone was neutralized; the United States Response was that Dialogue is still possible and that North Korea should consider taking down the Tone of its Escalations an Octave or two.  Secretary of State Kerry's thinking, we believe, is clear; obviously, North Korea could be defeated, „Bombed into the Stone Age” as the Late Senator B. Morris Goldwater may have put it some Decades ago but the Question is, does the United States need another Mess on its Hands.  We think Secretary Kerry may have quickly looked over the Situation (or perhaps he had done so long before he became Secretary of State); with the unfinished Business left in Afghanistan, a Mess in Iraq which President George W. Bush generously dumped on the Lap of his Successor and diplomatic Blunders by his Predecessor, Secretary Clinton in Egypt and elsewhere, he chose, wisely, to walk the higher Moral Ground, save Money and act with Deliberation.

One more Thing...Secretary of State Kerry, following the Example set by his Boss, President Obama, has decided to donate 5% of his Salary to Charitable Causes.

This stands in glaring Contrast with Secretary Clinton's Husband, former President Clinton, who, it is thought, amassed Millions (some say Billions) through lucrative Dealmaking with Foreign Leaders whom he had met, yeah...when he was President of the United States. 

Iran - Developing News - Rumours about an Explosion at the Fordo Nuclear Facility

There are developing News out of Iran, as yet unconfirmed nor reported by the Mainstream News.  The Vitznau News has learned that on Monday, on Day before the Israeli Election, there was a huge Explosion at the Fordo Nuclear Enrichment Facility near the City of Qum in Iran, about 150 Km (90 Miles or so) South of Teheran.

This is a massive Facility used for Uranium Enrichment built deep into a Mountain and considered to be impenetrable to Bomb Attacks by Israel.  Israel has championed the Argument that Iran's Nuclear Enrichment Capabilities must be taken out since before the End of the (George W.) Bush Administration and throughout the Obama Administration.

The Facility has reportedly been cut off from the outside World and about 200 People are trapped or sealed inside.

More Details can be found (in German) at the following Site:

http://www.welt.de/politik/ausland/article113155950/Experte-meldet-schwere-Explosion-in-Atomanlage.html

(The Newspaper ,,Die Welt")

and, in English, at the following Site:

http://www.wnd.com/2013/01/irans-fordo-hit-by-explosion/

WND is an American News Website affiliated with the Right.

Whereas Stories which appear on various Websites such as WND sometimes turn out to be correct and sometimes not, usually, ,,Die Welt'' has a Reputation of publishing Stories which sooner or later turn out to have been accurate.



 

The Social Security Tax - why it is a Regressive Tax and what Solutions are possible

One of the Tax Increases enacted or, more correctly, reinstated by the ,,Fiscal Cliff’’ Legislation is the additional 2% Social Security Tax.  This Tax was reduced from 6,2% to 4,2% by the Bush Tax Cuts; in one of the more bizarre Offshoots of the ,,Theory of Reaganomics,’’ take in less and pay out more, don't worry, as an old Sales Manager used to say, we'll make it up in Volume.

Of course, it doesn't work that Way but, then again, Economics was not Mr. Bush's Forté.  We don't know what his Forté was, actually, but certainly Economics was not one of them.

As a Result of this Action and previous underlying Actions, the Social Security Fund is facing a Deficit (Loss) of around $ 100 Billion in 2013; nobody knows for sure, really, but this Estimate is as good as any.  Reverting to the 6,2% Rate will alleviate the Problem somewhat but nowhere nearly enough.

Everybody who gets a Wage pays this Tax (matched by an equal Amount in Employer Contributions; the Employer Contributions Rate had not been reduced so it did not have to be revised - interestingly, no ,,Job Creation’’ Argument was made for that by the Bush Administration); however, the more interesting Part is that this Tax applies only to the First $110.000,00 or so of Income that everybody earnes; after that, one is home free; no 6,2% for Employee nor Employer.  This Policy, which interestingly, is not practiced by any other major Country which has a Social Security Type System merely exacerbates one of the most regressive Taxes imaginable.  Doubling the Social Security Tax Ceiling would eliminate 40-50% of the Annual Deficit and eliminating it altogher would allow for financing of Social Security and Medicare without straining any other Part of the Federal Budget.

Raising or eliminating the Ceiling would affect only that Part of Salaries in excess of $ 110.000,00 which would allow the Tax to become less regressive (although it would still be regressive) and bring a slight Modecum of Equity to the Social Security System as well as resolving another Piece of the Federal Budget and Deficit Dilemma.

The one Caveat would be, not to let the Clintons get Wind of this (admittedly, a hard Feat to accomplish) and throw the additional Revenues into the General Fund (as they did before), claim that somehow they ingeniously balanced the Budget and then leave for someone else after them the Task of straightening out the Mess once again.

1 January 2013 The ,,Fiscal Cliff’’

Folks,

As you let the Bubbly flow for the New Year 2013, as you listen to President Obama saying ,,A Deal is within Reach,’’ as you try to make sense of all this,

Forget about Reaganomics,
Forget about Clintonomics,
Forget about Bush whatever ,,Nomics’’ (Bush, George W., not Bush, Herbert G. W.)
Forget about Obamanamics,

what these Guys are doing is just not fair.

You cannot have, one cannot have, this Country cannot afford what George Herbert W. Bush called what all this actually is, what he called it, by its real Name:

,,Voodoo Economics.’’

Simply put, you cannot lower Taxes, go to War in two Countries, engage in Bailouts of astronomic Proportions, attempt to get out of the most severe Recession since the Great Depression (which no one dares call a Depression) plus do all of the ,,Regular Government Business’’ and allow the Stock Market to go up to 13.000 Points due to, among other Factors, Tax Cuts, Wholesale Tax Loopholes and the Largesse of the Federal Reserve Bank, a Policy which Mr. Bernanke calls ,,Quantitative Easing.’’

Write or call your Senator.  Write or call your Congressman.  Inform The White House of what you think, regardless of whether you agree with the Opinions or the Policies advocated here.

No Matter how much the Members of Congress and the President are getting paid and they are getting paid more than most Americans, their Inability, Unwillingness or Failure to deal with this Issue in a fundamental Manner, other than the Quilt Patchwork Approach which has become ,,Modus Operandi’’ they are, measured by any Corporate or other Performance Standards, getting paid too much.

Remember, any Announcement of a Deal being reached is premature and not really indicative of what is happening.  Assuming the Deal to let the Bush (George W.) Tax Cuts expire for those earning more than $ 400.000,00 and $ 450.000,00 respecdtively, along with the indispensable Social Security (Payroll) and Inheritance Tax Increases, there are still enormous Issues ahead:  ,,Sequestration’’ and increasing the Debt Ceiling Limit.

Write.  Write today.  Write tonight.  It could be the most important New Years' Message or Resolution you have made.

31 December 2012 - The Fiscal Cliff and Negative Energy

The Reality of the impending ,, Fiscal Cliff ’’ has reached Washington, today, New Year's Eve.  After Weeks of Predictions by various Pundits both inside and outside of the Government that a ,, Last Minute Deal ’’ would be reached, now, it appears that, at best, some Sort of ,, Last Minute Patchwork ’’ is the best one can hope for.

Former Senator Alan Simpson was ridiculed by both Democrats and Republicans for uploading a Video on YouTube in which he ,, danced ’’ well, sort of, along a Can of Soda (or, maybe was it a Beer Can?), symbolically pointing out to what is likely to happen, which is, kicking the Can forward.

There are numerous Factors which have contributed to reaching this sad Situation and this Column would like to attempt to refresh our Recollections as to how we may have gotten to where we are and why it seems that both Congress and The President appear so powerless in finding a Solution, a real Solution, not a Patchwork.

To this, we also wish to add the Following Observation.  One of the Attributes which is necessary for the Political Leadership and, yes, the Political Infantrymen as well, to find Solutions to or in difficult Situations is Enthusiasm, Élan and just a pure Desire to get Things (or at least something) accomplished.  This Attribute, this Force is lacking, lacking so glaringly that one cannot but feel the
,, Negative Energy ’’ which surrounds those who must struggle and find a Solution.

But what are the Factors which got the Federal Government into this horrid Situation and who was responsible for getting us there?  The List is long.  Below, we can only attempt to enumerate some of the Factors, likely important ones but certainly not all of the important ones along with Reasons why addressing these Problems is ultimately necessary in order to address the ,, Fiscal Cliff ’’ as well as the surrounding Decisions which need to be made (increasing the Federal Debt Ceiling).

§  Afghanistan - Defense Expenditures.  It is generally accepted by a good Number of People now that the War in Afghanistan has been a Financial Disaster.  Expenditures in Afghanistan as well as Iraq and Pakistan need to be addressed as President Reagan would have put it, with a
,, Red Pencil.’’ 

§  Income Tax Rates.  It is Time not only for the Republicans but for everyone else to recognize that the Principle of
,, Reaganomics ’’  which theorized that the Government can eventually raise more Revenue by lowering Taxes (and stimulating the Economy) is, basically, what President G. Herbert Walker Bush called ,,Voodoo Economics.’’  Moreover, specifically as to Corporate Income Tax Rates, while it is true that some Industrialized Countries have lower Corporate Income Tax Rates than the United States, none has the Array of Tax Deductions and Loopholes, some, custom written by Congress which are available to many large Corporations in the United States.  Returning to the pre-Bush (G. W. Bush) Era Tax Cuts for People earning in Excess of $ 250.000,00 is really not only a modest but also a sensible Solution and no credible Argument has been put forward that such a Move would result in the Loss of Jobs or Job Creation.

§  Restore Social Security, Medicare and related Social Costs to the pre Clinton Status Quo of ,,Trust Funds.’’  This will prevent future Presidents from claiming that they have ,,balanced the Budget’’ by shifting Funds around and raiding Funds which show large Surpluses (or even small Surpluses).

§  Remove the Social Security Tax Cap which currently stands at $110.000,00.  Think about this for a Minute.  More important than the Rate paid by Employees (currently lower than the Rate paid by the Employers, somebody forgot the ,,creating Jobs’’ Argument on that one by not reducing the Employers’ Contribution Rate) is that all the huge Earnings by Corporate Executives and Wall Street Bonus Recepients are exempt from Social Security Taxes; once they've paid the $ 110,000.00, the are home free.

§  Put Pressure on the Federal Reserve in general and Mr. Bernanke in particular to abandon ill advised Theories of ,,Quantitatve Easing’’ and what not by pouring Billions of Dollars into the Stock Market.  This is simply irresponsible.  The Stock Market is jittery at the Prospect of the Fiscal Cliff simply because it loves ,, Easy Money.’’  Even though the Stock Market has propelled to new Heights since the Start of the Fiscal Crisis (generously not referred to as a Depression but as a Deep Recession), this has had very little Impact, if any, on the Economy.

§  Abstain from huge Expenditures into Support Ventures
(,, Bailouts ’’) of large and even not so large Corporations such as AIG, General Motors, Solindra and others.    Although AIG has technically repaid all of the Government Loans this does not  account for Billions of Tax Breaks which AIG has received from the Government.  Besides, much of AIG has now been sold to China.  The General Motors Bailout is costing the Government Billions in Net Losses.  Somebody said, ,,Give me $ 60 Billion and I can show you how I can make a Profit.’’  It would be good to consider, at least, the Opinion of some Experts who contend that it will not be possible for General Motors to succeed as a viable Entity.

There are other Issues and Areas to be addressed but we wanted to list just a few.

Additionally, however, another Warning regarding a great Disservice which the Federal Reserve and Mr. Bernanke are doing to the Budget.  The Fed is keeping Interest Rates low, almost at Zero, to be exact.  This helps Banks and Financial Institutions which are entitled to borrow directly from the Fed and then reap huge Profits in large, complex and sometimes questionable Financial Transactions.  This does not help the Consumer, or even most Business Owners, who must pay a Bank or a Financial Institution nearly Ten Times, or more, in Interest, than what the Financial Institution needs to pay to acquire the Funds.

But there is a hidden Danger.  The Fed cannot keep Interest Rates at such low Rates at Infinitum.  Some Day, after Mr. Bernanke leaves (and he wants to leave soon), Interest Rates will have to, at best, inch or creep upwards and when that happens, the Cost of borrowing Money for the Federal Government will rocket astronomically.  The Rate on Federal Borrowing may one Day be dictated by Markets and The Fed may not be in a Position to dictate what it will be.  This has happened elsewhere, as we all know, only too well.  In such an Event, the Impact of Debt Service, not to mention the Cost of new Borrowing on the Federal Government will be not a pleasant Thing, as it is today for Mr. Bernanke to play around with announcing what the Interest Rates will be and throwing Money around into the Financial Markets while he invents new Names, such as ,, Quantitative Easing’’ for Things which aren't really that new at all.

The $ 1 Billion Presidential Election: One Billion Dollars and 10 Days to go

Way back then, way back when, in the 1960's an American writer by the Name of Theodore H. White came up with a brilliant Idea:  write a Book each four Years entitled ,,The Making of the President."  The Idea met with great Success.  Theodore H. White, who first wrote ,,The Making of the President 1960'' about the historic Kennedy-Nixon Campaign, went on to write Sequels about subsequent Presidential Elections, none as succesful as his First One, but still, all of them succesful enough.  Today, this Tradition seems to have faded.

So, one wonders, what insightful Issue might be noteworthy enough to bring to the Forefront if one were to write a Book titled ,,The Making of the President 2012.''  Several Campaign Issues which have been played up by the two Candidates come to mind.

§  Jobs - this is an Issue that impacts every American.

§  The Economy - again, this is an Issue that also impacts every American as well.

Other Issues, be they in the Area of Foreign Policy, Women's Rights, Homosexual Rights, Minority and Immigration Issues, are all Policy Issues, which, while being important enough and likely to affect the Outcome of the Election in a profound Manner, are still issues which, directly, ipso Facto, do not directly and imminently affect every American in the same Way that Jobs and the Economy (Two Facets of one and the same Issue) do.

However, there is another Aspect which does affect each and every American and, at that, in a profound Way and that is the Deficit.  Currently at $ 16 Trillion (it was 11 Trillion when President George W. Bush left Office) it is projected to rise in the upcoming Four Years, regardless of which Candidate wins the coveted Office.

http://economywatch.nbcnews.com/_news/2012/10/15/14453514-whether-its-obama-or-romney-either-will-face-huge-obstacles-on-economy?lite

And, aside from Generalities which are difficult to pin in Terms of tangible Policies, neither Candidate has a stark, aggressive and palpably effective Plan to deal with this Morass.  Even more worrysome is the Fact that the Federal Debt is held largely in foreign Hands, China, surprisingly, Japan (No. 2), according to several Reports and then followed by other Countries.

More worrysome is the Fact that under Mr. Bernanke's Policies, the Federal Deficit has become more susceptible to short Term Effects, this, because of Mr. Bernanke's Implementation of something he calls ,,Operation Twist'' under which the Fed is retiring as much as possible of the Long Term Debt, in exchange for Short Term Debt at somewhat lower Interest Rates.

This, of course, has the Effect of reducing, in the Short Term, the Federal Deficit which would be worse if the Interest Rates paid by the Federal Government were higher rather than lower, as they would become and are becoming, under the Policy of swapping higher Interest Long Term Debt for (slightly) lower Interest Short Term Debt, sometimes as short as a Month, a Week, or even a Day.

http://bottomline.nbcnews.com/_news/2012/10/11/14370868-washington-must-avoid-fiscal-cliff-goldmans-blankfein-warns?lite

However, there is serious Danger in the Policy being pursued by Mr. Bernanke.  Any Increase in the Interest Rates (on which the Fed has mercilessly kept the Lid on), would be ruinous for the Federal Debt.  Higher Interest Rates would push Interest Expenses into the Stratosphere, worsen the Deficit and Situations like that are ocurring right now not only in Greece, but also in places like Italy and Spain.  Mr. Bernanke does not tell us what Plan he has to deal with these Dangers and, what the Heck?  He wants to retire after his current Term expires.  Let someone else deal with that Problem.

 

But for the Presidential Candidates, there is another Aspect.  The President of the United States, or an Aspirant to that High Office, the Highest Office in the Land can set an Example.  An Example of a Modecum of Fiscal Discipline.  And, Mr. Obama, who has been unable to exercise this and Mr. Romney who claims he has ,,Experience'' in Fiscal Discipline have both set an unglorious Example:  this will be the First Presidental Election which will cost more than $ 1 Billion, which, as everyone else knows, is $ 1000 Million, that is to say, the Equivalent of $ 3,00 being spent for each Man, Woman and Child in the United States; that includes everyone, voting or non voting.

A significant Part of this Expenditure is yet to happen and it is about to happen now:  in the last 10 hectic Days of the Election, on an unprecedented Advertising Blitz by both Candidates.  That means, the Candidates would not be spending the Bulk of this Money on explaining or discussing the Issues which affect the Nation but rather, spending the Money on Advertising of one Sort of another.  Someone even before Theodore H. White said that the campaign for President of the United States is akin to selling a Box of Cereal on Television.

 http://firstread.nbcnews.com/_news/2012/10/17/14511630-ad-spending-tops-800-million-on-pace-to-reach-or-come-close-to-1-billion?lite

What Confidence can this Kind of senseless Spending instill in the Electorate that the succesful Candidate Ten Days from now, is going to have what it takes and it is going to take a Lot, an awful Lot, to bring Sense and Reason to a Financial Mumbo Jumbo built Brick by Brick by President Reagan with his Supply Side Economics Theories, President Clinton with his ,,Take the Money from here, put it there and balance the Budget'' Theories,  President Bush with his we can do two Wars at the same Time and do everything else at the same Time Theories, Mr. Greenspan with his ,,Irrational Exuberence'' Theories,  Mr. Bernanke with his ,,Operation Twist'' Theories and, and...Mr. Obama who, regardless of what one's Opinion might be of him, certainly was faced, for the last Four Years with a nagging Question:  how do we get out of this Mess which took so long to create?

One Way, admittedly four Years later that both he and Mr. Romney could have done was:  don't spend this Kind of ,,Irrational Exuberance'' Money to be elected President.

The Problem with President Clinton

The Problem the Democrats have with President Clinton, but do not or do not want to recognize, at least not yet, is similar to the Problem Republicans have with President Reagan but, it may be, that Republicans do not recognize their Problem, not yet anyway, either.  Certainly, the Republicans do not want to recognize it, though.

However, President Reagan has slowly began to fade from Memory, that ,,Great Communicator'' who had to have ,,Handlers'' when it came to Presidential Debates.  President Reagan caused enormous and, one might say, irreparable Damage by stimulating the Economy with enormous Deficits which expanded the Economy, created a Lot of rich People but also started the Build Up of an unprecedented Debt Load.  After a brief Hiatus during the 4 Year Presidency of President George H. W. Bush (Bush ,,41'', who called ,,Reaganomics'' ,,Voodoo Economics'') President Clinton not only continued President Reagan's Tradition but even praised it.

So now President Clinton whose salacious Activities with Monica Lewinsky have long ago faded from Memory, he and Secretary of State Hillary Clinton now boast, he knew how to balance the Budget.  Yeah, he did.  But how he did it is the more interesting Part.  President Clinton took the Postal Service Retirement Fund ($ 7 Billion) as well as the Social Security and Medicare Trust Funds (which were enormous Sums of Money) and threw them into the General Budget thusly creating a huge but temporary Infusion of Cash and, ,,Poof!,'' it looked as if the Budget was ,,balanced,'' but, again, only temporarily.  Now, not only the U. S. Postal Service but, far more worrying, Social Security and Medicare are in dire Straits.  Everyone is scared of raising the Payroll Tax Deduction Ceiling (now at $ 110,000 for People earning $ 110 Million, or $ 11 Million or even $ 1,1 Million because it would ,,discourage'' the Creation of new Jobs?).  President Clinton's Two Terms were then followed by the two economically disastrous Terms of President George W. Bush (Bush ,,43,'' the Dubya) and during his Term and after that, we all know what happened.  The Federal Deficit now adds up to $ 16 Trillion, give or take a Couple of Pennies and nobody has come up with a Plan of any Kind as to how this Deficit might begin to be retired.  Statements by the two Presidential Candidates, President Obama and former Governor Romney are about how they plan to reduce the Size of future Deficits and eventually reach (one hopes) a Balanced Budget, if...if this and if that and if something else, but, without raising Taxes.  Go figure.

So, when Mr. Clinton claims that the Economy is not ,,hunky dory'' but on the Mend,

http://firstread.nbcnews.com/_news/2012/10/19/14567670-clinton-lauds-obama-says-economy-not-hunky-dory-but-on-the-mend?lite

it is reasonable to question his Authority at coming up with such Statements.  Actually, with the Congressional Impasse over Cuts and Taxes and with ,,Automatic Sequestrations'' being a Problem which, no matter which way it is resolved or remains unresolved, the adverse Consequences on the Economy, the Problems which will be faced by the President after he takes the Oath of Office on 20 January 2013, no Matter if it is the current President or the Republican Challenger, will be daunting, very, very daunting, indeed.  And that, while at the same Time having to deal with Mr. Bernanke's untested Theories about ,,Quantitative Easing,'' ,,Operation Twist'' and who knows what else that Mr. Bernanke might come up with.

Sometimes, we can overcomplicate Things in spite of ourselves.  The basic Truth is that just like the Republican Party is not the Party of Ronald Reagan, it is the Party of Abraham Lincoln and Theodore Roosevelt; equally, the Democratic Party, it would be good to remember, is not the Party of Bill Clinton; it is the Party of Thomas Jefferson and Franklin Delano Roosevelt.  President Clinton said, when he first ran for President, ,,It's the Economy, Stupid!'' and he was right.  One could have also said at the same Time and certainly can say it now:  ,,Keep it simple, (Stupid!)''  ,,Do not solve a Problem by creating another Problem.''

 

Jackson Hole, Wyoming

Ah, Jackson Hole, Wyoming.  It is a beautiful Place.  A beautiful Valley, flanked by the Grand Teton Mountains, clean, pristine Air, sparkling Blue Water Lakes,Wildlife, Nature, just anything that one's Heart might desire, if you love Mountains.

Indeed, it is a Privilege to be able to see Jackson Hole, Wyoming once in a Lifetime.  Most, will never see this Place, except, perhaps, on a Poster or on a Photograph or on the Internet, somewhere.



But there are some of us who are more privileged than others and they must not necessarily come from the Private Sector.  Take Mr. Ben Bernancke, for Example. He now makes an Annual Pilgrimage to a Jackson Hole, Wyoming ,,Symposium'' and gives a Speech about the Economy.

He was there just last Week.

http://www.nytimes.com/2012/09/01/business/economy/fed-chairman-pushes-hard-for-new-steps-to-spur-growth.html?_r=1&nl=todaysheadlines&emc=edit_th_20120901

http://economywatch.nbcnews.com/_news/2012/08/31/13593025-ben-bernanke-says-high-unemployment-means-that-the-fed-can-do-more?lite

He was also there last Year and at about the same Time of the Year.  Imagine, holding an Annual ,,Symposium'' in Jackson Hole, Wyoming, every Year at the Peak of the Vacation Season.



But then, the News came out that Mr. Bernancke was not going to be saying very much in Jackson Hole, Wyoming and, indeed, he did not.

http://economywatch.nbcnews.com/_news/2012/08/30/13552209-bernanke-unlikely-to-tip-fed-hand-in-jackson-hole-speech?lite

We might ask, then, what was the Point of this ,,Symposium.''  The Policies which Mr. Bernancke has already implemented and wants to continue, we might add, have not been that much different under the Administration of President Obama than during the Administration of President Bush, if they have been different at all.  The Country is still lingering under a Recession which is not called a Depression and which Mr. Bernancke (and others) insists on calling a Recovery.

Surely, the ,,Few Dollars'' which are being spent on this ,,Symposium'' pale in Comparison with the Billions which Mr. Bernancke has doled out to Financial Institutions as Part of his ,,Quantitative Easing'' Theory which has, so far as one can tell, propelled the Financial Markets to historic Highs but done little towards Banks ,,easing'' their Lending to either Individuals or Businesses.

Still, a Dollar is a Dollar and, coming from the Chairman of the Federal Reserve Bank, it is a Signal both to the ,,Symposium'' Invitees as well as those on the Outside who, most likely, will never get a Chance to see Jackson Hole in their Lifetime.

A Letter to the Democratic Party Regional Director

Portions of the Letter and several Names have been edited.

...

Now there are many People who are far smarter than I am and I have no Idea how Things have been worked out or are going to be worked out on this Budget Thing.  All I know, as they used to say, is what I read in the Papers.  And what I read is that there is going to be a super bloody Fight over the next Sixth Months about these Cuts, and then something about a Constitutional Amendment and on and on and on.

We, when I say we, President Obama and all of us who voted for him inherited Two Wars from President Bush and they were both funded outside of the Budget by Mr. Cheney and, I suppose, Mr. Bush must have signed off on it.  But these Expenditures are being continued and they are huge and I do not sense any Urgency about the Money being spent, or as one might put it, wasted, on this.  I doubt that The Department of Defense can afford to get three competitive Bids every time they have to airfreight Drinking Water to Afghanistan.  Yet, that Money is coming out of somewhere and somebody is getting rich, very rich out of it.  That is just an Example.  And that is a Lot of Money.

Someone just acquiesced when Mr. Bernanke spent, I am not sure how much, they say, $ 6 or 7 Hundred Billion; that sounds like a Lot of Money to me, on ‘Quantitative Easing’ and for the World of me, I never heard that Phrase when I went to College nor ever since.  I just wonder whether President Wilson is rolling in his Grave when he hears Mr. Bernanke talk like that, wondering what has become of his beloved Princeton University.

Equally, a Lot of People are concerned about the Things that Mr. Geithner is doing in Office, including the Fact that he is spending more Time, the Way one hears it, talking to Wall Street People and Bank People each Day, than talking with Government People and, just intuitively, that doesn’t sound right either.

I am sorry that President Obama appears, some say, manœvered by People like this, after all, these People are not Tea Party Republicans, they work for the President and we all pushed for an Agenda when working to elect the President and overcame nearly astronomical Odds in order to prevail.

Moreover, it is disingenuous for both Mr. and Mrs. Clinton to trumpet that they have balanced the Budget when they took all of the Entitlement Funds, that includes Medicare and Social Security and dumped them in the General Fund.  Even my Cat, had I had one, would have known how to balance the Budget that Way.

One should perhaps lament not having President Bush, not George W. Bush, that other President Bush, to come out and say a few Words today, as he did to President Reagan, when he called this Type of Behaviour that President Reagan wanted to institute and instituted ‘Voodoo Economics.’  But President Reagan succesfully managed to kick the Can forward and now we all have to deal with it.

To this, one should reflect, perhaps, that the Republican Party was the Party of Abraham Lincoln, a Man who towers as a Beacon in the Annals of History throughout the World as someone who stood for Justice and Equality and paid with his Life for it, yes, Abraham Lincoln and not Ronald Reagan, as some of our Republican Friends would have us believe today and that the Democratic Party, the oldest Political Party in America and one of the oldest Political Parties in the World is the Party of Thomas Jefferson, who found his Inspiration in the Jewish Philosopher Baruch Spinoza and his Writings about Ethics, yes, Thomas Jefferson and not Bill Clinton.

The Fundamentals of Voodoo Economics

The Financial Crisis continues to play out in Wisconsin and other Mid-Western States. The Standoff between Wisconsin Governor Scott Walker and the Teacher's Union continues with no End in Sight. In Ohio, Governor John Kasich is also preparing for Battle with the Public Sector Unions. Iowa and other States appear to be ready to follow suit in not too long a Time. In New Jersey, Governor Chris Christie has already implemented major Financial Changes and Reforms and now has his Hands full denying that he would consider a Presidential Bid. Governor Christie has not yet invoked the Statement made by General William Tecumseh Sherman well over a Century Ago, 'I will not accept if nominated and will not serve if elected,' but we shall see.

It must also be said that with non Higher Education Student Performance Levels in a Dismal State throughout the Nation (see, 'Universities' elsewhere in this Forum) Teacher Salaries and Benefits should come under Scrutiny. Many Surveys indicate that Public Sector Workers are not only paid better but also have infinitely better Job Security when compared to Private Sector Workers. This Fact corrupts the Standing of Public Sector Workers as 'Civil Servants,' i. e., performing out of Dedication rather than Financial Benefits and Gain.

However, the Argument that balancing State Budgets can be done simply by this, without imposing an additional Tax Burden on Higher Income Brackets or, indeed, as done by Governor Walker, cutting Higher Income Taxes, qualifies for what Two Decades earlier President George Herbert W. Bush described as 'Vodoo Economics.'

At the Federal Level, we see a Course not all that different. 'Tea Party-ers' and many Republicans in the House are clamoring for various Cuts, much of it directed at Federal 'Entitlement' Programs and, some, attempting to reduce waste. However, all this cutting, if combined with continued uncontrolled Expenditures in Afghanistan and Iraq is totally useless. The Federal Budget consists of 3 Major Line Items: Social Programs, Military Expenditures and Interest on the Federal Debt, which add up to about 90% of what the Federal Government spends. So, even if everything else were to be eliminated completely, which, realistically it cannot, that would only add up to 10%.

In this Context, the Republican Argument that the Federal Budget can be brought under control, with these enormous Burdens, while reducing Higher Income Personal Tax Levels is, again, nothing less than what President Bush described as 'Voodoo Economics.'

Where the Republican Counter Argument that cutting Higher Income Tax Brackets 'creates Jobs' has germinated from is, to this Writer, a Mystery. There is no Evidence to show that the Billions doled out to Banks and Financial Institutions, or the 'Quantitative Easing' Cash have created any significant Number of Jobs, actually, rather, the Contrary Argument seems to be more persuasive, that they have not. To use a Cliché, the Obscene Bonuses on Wall Street have not created any Jobs.

The Challenges to balancing the Federal Budget (and, by Implication, States need to follow a similar Course in their Affairs) are:

If the War in Afghanistan (or in Iraq, or anywhere else) is necessary, fund first, fight later. Do not do what President George W. Bush did, fight first and let somebody else worry about the Funding by kicking the Can forward.

If the Social Programs have merit, fund and do not divert Funds to other Expenditures, as it was done previously with Social Security.

To cover the Federal Debt Interest Payments, one of the largest Items in the Federal Budget, obtain Funding, not by increasing the Debt Ceiling and cutting Taxes which are Voodoo Economics at its most sublime, but by assuring a Progressive Level of Taxation which covers them and, at the same Time, pray and pray hard, that somehow Mr. Bernancke will be succesful in keeping the Interest Rates low because, if he fails doing that, the Interest Payment Portion of the Federal Budget would explode.

And the Fundamentals of Voodoo Economics would not apply, should that happen.

Uncharted Waters

One Week after Mubarak's Departure from Cairo to the Sea Side Resort of Sharm el Sheikh, the Demonstrations in Tahrir Square and elsewhere in Egypt continue unabated. Strikes abound. The Egyptian Economy is in Ruins. Sketchy Reports notwithstanding, only the Ancient Egyptian Deities know for sure just how much Damage has been done and how much has disappeared from the Cairo Antiquities Museum just like a few Years earlier, irreplaceable Artifacts of the Messopotamian Æra had disappeared from Baghdad, never to be found again or, in any Case, not for a long, long Time. It is difficult to envision what the Future holds for Egypt.

Additionally, the Proponents of the Domino Theory appear to have gained further supporting Arguments. Earlier, Unrest had spread to Jordan and the Palestinian Territories. Now, fullblown Unrest appears to be underway in Libya, Bahrain, to a lesser Extent in Iran and even in Morroco, which had been considered to be 'Moderate' or 'Safe.' Yemen, where an increasing Number of Terrorists have taken refuge, is on the Edge of exploding. In Libya, Demonstrators are being mowed down with Machine Guns and some Reports indicate that Benghazi, Libya's Second Largest City, has fallen.

Most of us may not have even known where exactly Bahrain is; thus, we may be surprised if we were to find out that the tiny Oil Producing Island is only 200 Miles or so from Riyadh, the Capital of Saudi Arabia and that, unfortunately, there is actually a Bridge connecting Bahrain to the Arabian Peninsula Mainland; the Road leads straight to Riyadh.

After earlier offering to supply the now failed Mubarak Regime any U. S. Military and other Aid which Egypt may have lost from the United States, now the Silence from Saudi Arabia regarding the spreading Unrest is deafening. No less deafening is the Silence from Mrs. Clinton, who earlier all but pulled the Oriental Rug from under Mubarak.

As this Writer earlier noted, in the Days preceding Mubarak's Fall, Wall Street minimised Egypt's Importance to the Turmoil in the Mid-East, Suez Canal and all. Now, while North Africa and the Arabian Peninsula, which together produce an indispensable Proportion of the World Oil Supplies, are experiencing Seismic Challenges to Stability, Wall Street appears to be 'concerned' with Wal-Mart Earnings.

This Forum previously suggested that the Linkage between The Fed's Policy of 'Quantitative Easing' and the Flow of Capital into Wall Street needed to be examined. It would seem to make Common Sense, at a Time when the Federal Government is being confronted with Massive Deficits and how to manage them, that Congress look into 'Quantitative Easing' and establish if this massive Outflow of Federal Funds, which Mr. Bernancke, an Economist and a distinguished one at that, found a Way to 'spend' without having it appear on the Books as a Deficit and without the Need of Congressional Approval, is flowing to re-energise the Economy or to re-energise Wall Street.

If President Reagan's Theories of 'Trickle Down Economics' are being adopted by Mr. Bernancke, having forgotten that President George Herbert W. Bush had described them as 'Vodoo Economics,' perhaps we can at least remember an Observation attributed to another Distinguished Republican, who was quoted to have said: 'A Million Dollars here, a Million Dollars there and pretty soon you are talking about Real Money!' However, we would now have to correct the Late and nearly forgotten Senate Minority Leader Everett McKinley Dirksen and add 3 Zeroes at the End of his Numbers. After all, we are talking about Billions here, 600 of them, and more, if 'needed,' according to Mr. Bernancke.