The Supreme Court - Oral Arguments on Homosexual Marriages

On Tuesday the Supreme Court of the United States heard Oral Arguments on one of the two Cases on the Issue which the Court agreed to review; today's Arguments were on the California Initiative (Proposition 8) prohibiting Homosexual Marriages which was ruled invalid by lower Federal Courts.  The Pressure on the Court in recent Weeks to issue a Finding that any Prohibition on Homosexual (i. e., Gay) Marriages is unconstitutional has been enormous. 

The Arguments and Questioning by the Justices were often amusing; there was Laughter in the Court on more than one Occasion.  We would like to focus on one such Instances which, despite being amusing, raise relevant Issues.

The Issue that caught this Column's Attention is Polygamy.

Essentially, if the Argument against a Prohibition against Homosexual Marriages is to be equated to similar Arguments against miscegenation, for Example (which were ruled unconstitutional by the Court), then, well, then, here is an Exchange between Mme. Justice Sotomayor and Attorney Theodore Olson:

Mme. Justice Sonia Sotomayor

Sotomayor: If you say that marriage is a fundamental right, what state restrictions could ever exist?

Olson: "Well, you've said -- you've said in the cases decided by this Court that the polygamy issue, multiple marriages raises questions about exploitation, abuse, patriarchy, issues with respect to taxes, inheritance, child custody, it is an entirely different thing. And if you -- if a State prohibits polygamy, it's prohibiting conduct. If it prohibits gay and lesbian citizens from getting married, it is prohibiting their exercise of a right based upon their status."

 

Attorney Theodore Olsen

which then allowed Chief Justice Roberts to raise the Issue of the Definition of Marriage, the „Label:”

Roberts: “So it's just about — it's just about the label in this case.”

Olson: “The label is — ”

Roberts: “Same-sex couples have every other right, it's just about the label.”

Olson: “The label ‘marriage’ means something. Even our opponents — ”

Roberts: “Sure. If you tell — if you tell a child that somebody has to be their friend, I suppose you can force the child to say, this is my friend, but it changes the definition of what it means to be a friend. And that's it seems to me what the — what supporters of Proposition 8 are saying here. You're — all you're interested in is the label and you insist on changing the definition of the label.”
Olson: “It is like you were to say you can vote, you can travel, but you may not be a citizen. There are certain labels in this country that are very, very critical.”

 

Chief Justice Roberts

The above Exchanges expose, rather than resolve, the Difficulties of the Issue of Homosexual Marriages.

What would be the Consequences of the Ruling by the Supreme Court, no Matter in which Direction it goes (some are suggesting that the Supreme Court is tending towards as „narrow” Ruling) to, say, Muslims in the United States, which is soon becoming a „Multi-Culty” Society, for wanting to exercise their Religious Right to Polygamy?  Would a Denial of the Right of Muslims to engage in Polygamy be a Denial of their Right to freely exercise their Religion?

The Issue is complex, difficult and will hang as a Damocles' Sword over Generations yet unborn; certainly this is going into uncharted Waters, as many Things seem to be doing these Days; the Challenges that the Supreme Court is facing in coming down with a Decision on this Case are immense and burdensome; burdensome on future Generations; Things are not as simple as Mr. Olson, who has switched Positions and Affiliations with ease in his Career, would have us believe they are.

 

Mr. Bernanke's Reaction to the Cyprus Crisis

Folks,

Here is what Mr. Bernanke said regarding the Cyprus Financial Crisis:  He said,

Bernanke: Cyprus poses 'no major risk' to U.S. banks, economy

The U. S. Stock Market reacted positively to Mr. Bernanke's Comments.

Data as of 5:16pm ET

Wednesday’s Close:

• Dow +55.91
  
  
  14,511.73
  +0.39%
• Nasdaq +25.09
  
  
  3,254.19
  +0.78%

Stocks end higher on Fed stimulus pledge

Mar 20 4:56pm:

U.S. stocks rose Wednesday after the Federal Reserve reiterated that its stimulus measures will remain in effect until the job market gets back on track

In Cyprus, Demonstrations against the now rejected Bailout Plan, linked to expropriating 10% of the Value of Savings Accounts, continued, accompanied by many Placards in English, an interesting one, stating, „Aphrodite is angry.”  Banks continued to remain closed.
 

Aphrodite, or Venus, as she is known to many of us was and continues to be, in the Minds of many, the Goddess of Love.

What we don't know, of course, is just how angry she is and just what she exactly might be thinking about the European Central Bank, which came up with their ,,Rescue Plan” or, for that Matter, Mr. Bernanke, who seems to be steering clear of her at any Cost.  In this Case, the Cost seems to be that of pumping more Money through the „Discount Window” to Financial Institutions deemed „Too big to fail.”

One Thing we know, from Greek Mythology and the Renaissance is that when Aphrodite was born, she was anything but angry.

The Birth of Venus by Sandro Botticelli

 

Her Daddy, Zeus, though, was another Story.  No one would have wanted to mess around with him, especially when he got angry.

Cyprus and the Stock Market

This Column has long been critical of the Policies of The Federal Reserve and others, but particularly those of Mr. Bernanke, by pointing out the Low Interest, Easy Money Policies which The Fed has pursued, not only under Mr. Bernanke but also before (under Mr. Greenspan, for Example), but Policies which have been exacerbated during the Tenure of Mr. Bernanke.

Particularly, in the View of this Column but not only this Column, in the Opinion of others, including many respected Economists both in the United States and elsewhere, the Policies of the Fed have made it possible for the Stock Market to propel to Record Highs, in the Face of a languishing Economy, High Consumer Debt, the Mortgage Crisis, staggering Federal Deficits and so on.

Interesting, however, have been some of the Explanations which have come forward in order to explain the relentless upward Gyrations of the Stock Market from various Apologists and Allies of these Policies, including but not limited to, that Financial Powerhouse known as Goldman Sachs which, some consider to be an Arbiter of the Financial Movements on the Stock Market.

One of the Arguments most strongly pursued by these Apologists has been the „Global Nature” of the Stock Market, meaning that the World Economies are so tightly intertwined that the Stock Market represents not only a Barometer of the U. S. Economy but of the Global Economy and Financial Movements as well.

So, along this Week comes an „Inconvenient Truth,” that of a little Insular Country in the Eastern Mediterranean called Cyprus, a place many People have not even heard of.

Cyprus

Cyprus is a relatively tiny Island with enthic Problems of its own but which joined the Euro and, because of its unique Location, it attracted immense Offsore (well, Cyprus itself is Offshore!!!) Deposits from Russia and elsewhere.  Because Cyprus has close Relations with Greece, much of these Deposits were invested in Greece and other Places where they should not have been invested and the Result has been a Financial Disaster which may cause two or more of the Cyprus Large Banks to collapse and drag the whole of Cyprus into Collapse with them. 

Unspoiled Cyprus Shoreline

The European Central Bank has orchestrated a „Bailout” of Cyprus but, mindful of the Disaster in Greece and looming potential Disasters in Spain, Portugal, Italy or even France, it has „linked” the Bailout to a 10% Expropriation to be levied on all Savings Accounts, in order to help pay for the Bailout.  Although this was later modified to apply only to Savings Accounts above a certain Limit, the Resistance to such a Plan was monumental.  After considerable Turmoil on the Streets, accompanied by a „Bank Holiday” which caused a horrifying Liquidity Crunch in a Matter of Days, the Cypriot Parliament turned down the „Help” thus forcing the Situation forward into uncharted Waters.  Whereas, earlier, Huge Banks such as Deutsche Bank and, possibly, some American Banks and other Foreign Banks were not allowed to fail because of the Greek Financial Crisis (The „Too Big to Fail” Theory), large Cypriot Banks, tiny in comparison to Multinational International Banks may be allowed to fail.  We simply don't know.

However, all this presents a Dilemma for the Apologists and Supporters of the Stock Markets in New York, where the Dow Jones Industrial Average just recently catapulted, at galloping Speed, over the 14,000 Mark, citing, „Strength in the Economy.”

So, the following Explanation came forward:  it said, the  Cyprus Financial Crisis will actually help U. S. Markets because Investors will have no Choice but to seek Refuge in the U. S. Markets.  Throw out the Window „Globalisation,” High Unemployment, Horrendous Deficits, Disastrous Balance of Payments and, lest we forget, „Derivatives” championed by many, not least of whom, Goldman Sachs, which brought the United States Economy and Banking System to the Brink, requiring huge, partly unfunded Bailouts not only of Banks, but of huge other Institutions and Corporations.

It goes without saying that Mr. Bernanke, who has announced his Departure when his current Term expires, has remained silent on this Matter.  The Fed continues, during this continuing Series of Crises, to keep open „The Discount Window” where large, „Too Big to Fail Banks,” (and Financial Institutions, such as Goldman Sachs) can borrow Money at near Zero Interest Rates, while ordinary Citizens must struggle with Mortgage Foreclosures, Credit Card Debt and Student Loans.

„Irrelevant,” one can hear them say.  The Dow Jones has pushed through 14,000 and the Economy is on the Mend.  Global Economy or no Global Economy, Cyprus is 6.000 Miles away from New York.  We simply wonder, how are they measuring the Distance?  Globally, as on a Globe, or Flat Distance, as they did at one Time when everybody thought the Earth was flat and all you had to do in order not to fall off is not go too close to the Edge.
 

„Classy Acts”

Folks, when Marshall McLuhan (1911 - 1980) proclaimed his Axiom, „The Medium is the Message” he was referring, in great Part, to Advertising; however, it is reasonable to infer that he knew it pertained to much, much more.

It has also been said that a Picture speaks a Thousand Words.  Here are two recent Examples drawn irrespective of Political Coloration which demonstrate that the Axiom „The Medium is the Message” applies at least as equally to Politics as it does to Advertising, if not more so:

1.  Former Alaska Governor Sarah „Louise” Palin, addressing the CPAC in March 2013, holding a ,,Big Gulp”

and

2.  „Singer” Beyoncé singing The National Anthem at the Super Bowl in February 2013.

We regret, but the Photograph of „Singer” Beyoncé has apparently been censored, concealing her Wide Open Legs during her „Performance” of the National Anthem.

We wonder what Abraham Lincoln might have said or commented about all this.

Sadly, it appears, not too many People care or think much about Abraham Lincoln's Opinion about Things anymore.

For those who might be interested, here are some of the Things that President Lincoln said:

https://www.youtube.com/watch?v=Cs6cIi_mKfg

A Lincoln Portrait, by Aaron Copland.  The Philadelphia Orchestra, directed by Eugene Ormandy, recorded in 1962.  The Narrator is Ambassador and Governor Adlai E. Stevenson.




 

No Inflation...so they say

According to the Department of Labor, U. S. Consumer Prices increased 0,7% in February.  More troublesome yet, the Department reports that Gasoline Prices shot up 9,1% during the same Period.

http://www.nbcnews.com/business/economywatch/consumer-prices-soar-inflation-check-1C8886085


However, the Federal Reserve, under the Ægis of its Chairman, Mr. Bernanke, states that there is nothing to worry about.

Go figure...

But this is nothing new.  For some Reason, for Years now, the Federal Reserve gets to decide which Price Increases are inflationary and which are not...everyione else just gets to pay more...

In Memoriam - 15 March „The Ides of March”

Today, 15 March, „The Ides of March” in the Year 44 B. C., Caius Julius Cæsar was assassinated.

Ich bin nicht nachtragend aber ich vergesse nichts.  F. W. Steinmeier

 

Saturday 9 March 2013 Don Carlo(s) by Giuseppe Verdi - The Metropolitan Opera New York, Lorin Maazel, Conducting

Today The Metropolitan Opera in New York made an Attempt, a valiant Attempt to present Don Carlo(s) by Giuseppe Verdi.  Broadcast worldwide it was under the Baton of Lorin Maazel; as capable a Conductor as one could ask for such a monumental Work.

Giuseppe Verdi (1813 - 1901)

 

The Performance which runs close to Six Hours (including Intermissions) in the Italian Version (it runs just as long in the French Version) was spellbinding; breathtaking not only because the Performers threw in everything they could and then some but, equally, or, perhaps, mainly, because Don Carlo(s), an Opera which is performed frequently enough but not all that frequently also represents everything Verdi was able to think of and throw at his Audience.  Although Verdi composed Don Carlo(s) for Money; lots of Money still, when he wrote the Opera, he was at the Peak of his Fame and Creativity. 

Premièred in Paris in 1867, Don Carlo(s) was following spectacular Successes by Verdi:  Rigoletto, La Traviata and Aïda.  Even though there was no Shortage of great Composers at the Time; Jacques Offenbach in Paris and Johann Strauß in Vienna who composed ,,The Blue Danube Waltz'' in the same Year; to name just two Examples, still, Don Carlo(s) comes through as what can only be described as a dramatic Presentation of unparalleled Proportions.

The Music, the Story (adapted after Friedrich Schiller, Tragödie von Don Karlos) the entire Scope of the Work is so grand, as to make a ,,perfect'' or ,,near perfect'' Performance only a Dream, a Goal to be aspired for by any Great Opera Company.  It is a difficult and, expensive, Work to stage and perform.  Expensive, even by Opera Standards.

Scene from Don Carlos by Giuseppe Verdi, The Metropolitan Opera, New York, on Tour in Japan

On this Special Day, 9 March 2013, which has Signficance for its own for Reasons, we wish to express Gratitude to The Metropolitan Opera Company of New York, for making, once again, this Effort.

http://www.youtube.com/watch?v=cHhoFYneJOM

It would also be appropriate to pay supreme Homage to Verdi, a Great among Greats the Likes of which may never be seen again, for bequeathing to us what can only be aptly described, we believe, as an Orgasm of Musical Excellence.

Thank you, Joe!  Grazie Infinite!!!

(The Link above is a powerful Rendition of the Baritone/Tenor Duett, swearing Allegiance to Death - Giacomo Aragall and Renato Bruson in a Live Performance, at La Scala, Milan)

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.



 

$ 60 Billion and Change (a Billion here, a Billion there)

New Jersey Governor Chris Christie has expressed Outrage at the House not taking up Hurricane Sandy Relief on the last Day of the 112th Congress.  He is right, of course.  To this, it should be added that neither had the Senate and, if the Bill would have been ammended to include Hurricane Sandy by the House, that would have meant the Bill would have had to go back to the Senate for Approval, prolonging the ,,Fiscal Cliff’’ Crisis by at least another Day; the 112th Congress may or may not have had the Time, the Ability or the Inclination to finish it all off.

Be that as it may, however, the Amount of Relief sought by another Governor for the Damages arising of Hurricane Sandy, Governor Andrew Cuomo of New York, was around $ 60 Billion.  Without assuming that the Figure estimated by Governor Cuomo is or is not correct, it should, nonetheless, be noted that the 112th Congress, in its waning Days, found it appropriate to legislate $ 67 Billion of Tax Credits (which is equivalent to a $ 67 Billion Treasury Shortfall, same Thing as an Expense, really...not getting the Money or spending it adds up to the same Thing under the Bottom Line) for various specifically targeted Corporate Taxpayers, including, of all Things, NASCAR.

http://usnews.nbcnews.com/_news/2013/01/04/16334798-fiscal-cliff-deal-includes-at-least-679-billion-for-special-interests?lite

It is a reasonable Question to ask, whether this Prioritising has been done in an equitable Manner; also, whether Governor Christie's Anger should not be directed at the Senate as well, for not including Hurricane Sandy Relief in the Legislation in the First Place but including $ 67 Billion in ,,Pork.’’

Elsewhere in this Column, it has been suggested that other Methods should be considered to finance the Rebuilding of the Hurricane Sandy Devastation; a Sales Tax on the Buying and the Selling of Stocks, an extremely profitable Industry which benefits the New York Tri State Area immensely and which is based in the Middle of the devastated Area.

It would also be beneficial, of course, for Governor Christie, yes, Governor Cuomo as well and all the Rest of us to also urge Congress to rescind the $ 67 Billion in Tax Credits (,,Pork’’) appropriated for NASCAR and other Special Interests; after all, the Treasury needs every Penny it can get.

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.

The ,,Fiscal Cliff’’ and Hurricane Sandy

Good News!  The Fiscal Cliff Legislaton is a done Thing.  Well, not altogether done but at least the minimum necessary.  For about Two Months or so while still important Things need to be done; the Federal Debt Limit and those onerous Budget Cuts.

Some complain that $ 60 Billion or so of ,,Pork Provisions’’ got attached to the Legislation by various Interest Groups as the Price to pay for getting this Legislation done.  The Complaint is obviously legitimate.

Still others, Governor Chris Christie of New Jersey and, to a lesser extent but just as convincingly, Governor Mario Cuomo of New York point out that the 112th Congress, which has now become History, adjourned and ended its Session without taking up Aid for the Victims and Reconstruction of Hurricane Sandy.  Interestingly, that Appropriation would have come up to about $ 60 Billion as well.

What is being missed in the Equation that the United States Government is in dire Straits and does not really have the Money either for the ,,Pork Appropriations’’ nor the Money needed for the Reconstruction of Hurricane Sandy.

On the other Hand, the News of the Fiscal Cliff Avoidance Legislation was ,,cheered’’ by Wall Street, with Big Gains on 31 December 2012, anticipating that an Agreement would be reached and some Legislation would be passed and, immediately following, on 2 January 2013, celebrating the Event.

Governor Cuomo should be thinking about and Governor Christie as well as President Obama should be suggesting to him that one look elsewhere to raise this direly needed Money from a minuscule Sales Tax levied on Stock Market Transactions of 0,1% or even 0,2%.  This would raise the Money for them very quickly, from a locally owned Institution which is controlling Trillions of Dollars and give the Federal Budget a welcome and much needed Relief.

One should be keeping in Mind that the Stock Market has been an enormous Beneficiary of Federal Largesse; propping up Corporations such as AIG and General Motors (the ,,New’’ General Motors, whatever that means) and, not the Least, the unbelievable and unheard of Policies of ,,Quantitative Easing’’ which have been pursued by the Fed under the Ægis of Mr. Bernanke.

The Federal Government needs to look for Economies wherever it is possible; even with increased Tax Rates, this comes nowhere near close to starting to make a Dent in the Federal Deficit (it actually allows it to continue to worsen), Governor Christie and all others should be looking for Revenues right in their own Back Yard.

The Address of the New York Stock Exchange is, as Mr. Christie surely knows,

No. 11 Wall Street, New York, N. Y. 10005.
Telephone:  1-212-656-3000

 

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.