Archive for the ‘Economics’ Category

Lairds of the land

April 2, 2008

Well, the lairds of the land have yet again shown just how ignorant they are about the way things work in the world. I have to wonder though, just how many of them also hold stock or other investments in oil..?

“The latest in the series of pointless gestures that constitute Congressional energy policy came yesterday, when executives from five major oil companies were paraded before Ed Markey’s House hearing on global warming. They served as political props for Members to denounce rising gas prices, ventilate Dick Cheney conspiracy theories and otherwise advertise their ignorance of the markets they purportedly oversee. Democrats, for instance, might rejoice over higher energy costs, which is precisely the eco-policy they’ve been advocating for years. Until Congress finds a way to abolish the price mechanism, paying more for gasoline is the only signal that will tell Americans to cut their consumption. How exactly do Democrats think a carbon tax or cap-and-trade regime is going to work? The oil executives performed a public service by pointing out other economic realities. About 70% of the price of gasoline is determined by the global price of crude, which is rising because of world-wide demand and volatility in the commodities markets, not to mention the Federal Reserve’s easy-money policy. Congress might also look to its gas mandates and the corset it has laced around domestic production. It’s true that industry profits are at a record high, but oil is a classic boom-and-bust business, which is why billions in capital investments are folded back into exploration and production. Besides, the industry’s effective tax rates are in the neighborhood of 40% to 44%. Over the past five years, Exxon Mobil’s total U.S. tax bill exceeded its U.S. revenues by some $19 billion. Mr. Markey also used the occasion to threaten special tax increases, grilling the executives about $18 billion in ‘subsidies,’ which are actually a tax deduction that Congress itself extended to all manufacturers, including Big Oil. And he demanded that the companies commit 10% of profits to renewable energy. But as an Exxon vice president put it, fossil fuels are still going to account for at least two-thirds of the world’s energy consumption in three decades and whatever scientific progress is made, the practical prospects for alternatives remain ‘very, very small’.”—The Wall Street Journal

International Law, and Order

April 1, 2008

Guess what folks? There is a Constitution after all!

International Law, and Order
March 26, 2008; Page A14

Everyone waxing outraged about the big Medellín decision yesterday is focusing on the death penalty, but the Supreme Court did something else entirely: It insulated American law from the international variety. And this modest and limited ruling should help restore those two qualities to U.S. courts, which is no doubt one of the reasons the Roberts Court’s political opponents are so livid.

Though the case became a global cause célèbre, its sordid origins trace to 1993, when José Medellín, a Mexican national, murdered two Houston teenagers. He was sentenced to death by a Texas jury, but his lawyers argued on appeal that he hadn’t had access to Mexico’s consulate before he confessed to his crimes.

This was a violation of the 1963 Vienna Convention, which holds that diplomats are supposed to be notified when their nationals are arrested. In response, the U.S. government took steps to ensure states better comply in the future, both to fulfill its treaty obligations and serve the reciprocal interests of U.S. citizens detained abroad.

But Mexican authorities made the case a referendum on capital punishment and international legal norms, ultimately suing the U.S. in the International Court of Justice at The Hague. The ICJ ruled in Mexico’s favor, ordering states to give Medellín and some 51 other nationals new hearings. The question before the Supreme Court was whether such international dictates must be enforced by sovereign state courts. An affirmative answer might have gone a long way toward validating the expansive claims of liberal legal theorists that U.S. courts take instruction from the U.N., among other moral oases.

Chief Justice John Roberts, writing for the 6-3 majority, ruled that the ICJ finding was not binding because the Vienna Convention is an understanding between governments, a diplomatic compact. It was never intended to automatically create new individual rights enforceable domestically by international bodies. Texas’s violation was of diplomatic protocols, and calls for a diplomatic remedy.

Treaty obligations, in other words, do not necessarily take on the force of law domestically. Rather, Congress must enact legislation for whatever provisions — such as consular notification — that it wants to make the formal law of the land. This distinction matters because it establishes a fire wall between international and domestic law. It also protects the core American Constitutional principles of federalism and the separation of powers. As Justice Roberts points out, the courts must leave to the political branches “the primary role in deciding when and how international agreements will be enforced.”

Medellín v. Texas also swatted away a claim of Presidential power. While the Bush Administration did not agree with Mexico’s choice of venue, or the intrusion on U.S. sovereignty, it attempted to allay the diplomatic ruckus by directing states to comply with the ICJ ruling in a 2005 executive order. The Court ruled that the President’s power, too, was limited by the Constitution. The authority to make treaty commitments did not extend to unilaterally asserting new state responsibilities or legal duties. Again, the executive could only make new laws in conjunction with the legislature.

Devotees of using foreign law to overrule American politicians will squawk. But the Medellín majority has delivered a victory for legal modesty and the U.S. Constitution

SOURCE: http://online.wsj.com/article/SB120649157469864165.html?mod=djemEditorialPage

God Bless those Black Crows!

Milton Friedman and William F. Buckley, Jr.

March 31, 2008

I have been struggling to come up with what both of these men meant to me, and what their passing means for America. The following is by Mike Rosen, follow the link for the full story;

ROSEN: Two irreplaceable minds

Friday, March 28, 2008

It may be true that no one is indispensable. That is, people come and go, and the world goes on. Perhaps irreplaceable, then, is a better word. Individuals whose unique persona, contributions and impact on events make them one of a kind.

In the past several months, we’ve seen the passing of two such people, both of whom were my intellectual heroes and mentors. In November, Nobel laureate economist Milton Friedman died, and earlier this month we lost William F. Buckley, Jr. Friedman described himself as a libertarian; Buckley was a conservative. Friedman was Jewish; Buckley, Catholic. They had different specialties, different agendas and different styles but had much in common and often overlapped on matters of policy and politics.

I read and was greatly influenced by their writings and ideas, and I had the distinct privilege of knowing them personally. They were kind enough to appear on my radio show on several occasions. Those interviews were always a treat. Friedman restored respectability and stature to free-market economics and had a rare gift for explaining economics in common-sense terms that laymen could understand. (My copy of Free to Choose has the unique distinction of being autographed by Milton and his wife and co-author, Rose).

http://www.rockymountainnews.com/news/2008/mar/28/two-irreplaceable-minds/

From the comments about that article:

All thinking persons will miss the late Milton Friedman and William Buckley, Jr.

Great minds come by too infrequently and too many average minds pass as great minds because they offer utopian pipe dreams. Neither Friedman nor Buckley can be said to have offered uptopian pipe dreams.

“Back in the thirties we were told we must collectivize the nation because the people were so poor. Now we are told we must collectivize the nation because the people are so rich.”

“I won’t insult your intelligence by suggesting that you really believe what you just said.”

“I’d rather entrust the government of the United States to the first 400 people listed in the Boston telephone directory than to the faculty of Harvard University.”

“Idealism is fine, but as it approaches reality, the costs become prohibitive.”

“Life can’t be all bad when for ten dollars you can buy all the Beethoven sonatas and listen to them for ten years.”

“Liberals claim to want to give a hearing to other views, but then are shocked and offended to discover that there are other views.”

Just Why is the Economy Tanking?

March 30, 2008

This is a copy and paste from the RLCC forum, originaly attributed to snopes.com

What Costs More than the War in Iraq?  Just One Example of our three presidential candidates efforts at helping with the coming economic collapse.

A list of the idiots in Washington.     

Subject:WHAT COSTS MORE PER YEAR THAN THE IRAQ WAR???
 
Be sure to read the 14 reasons at the bottom.
Social Security Change For 2008
The United States Senate voted to extend Social Security Benefits to Illegal Aliens beginning in 2008. The following are the senators who voted to give illegal aliens Social Security benefits. They are grouped by home state. If a state is not listed,
there was no voting representative.
Alaska : Stevens (R)
Arizona : McCain (R)
Arkansas : Lincoln (D) Pryor (D)
California : Boxer (D) Feinstein (D)
Colorado : Salazar (D)
Connecticut : Dodd (D) Lieberman (D)
Delaware : Biden (D) Carper (D)
Florida : Martinez (R)
Hawaii : Akaka (D) Inouye (D)
Illinois : Durbin (D) Obama (D)
Indiana : Bayh (D) Lugar (R)
Iowa : Harkin (D)
Kansas : Brownback (R)
Louisiana : Landrieu (D)
Maryland : Mikulski (D) Sarbanes (D)
Massachusetts : Kennedy (D) Kerry (D)
Montana : Baucus (D)
Nebraska : Hagel (R)
Nevada : Reid (D)
New Jersey : Lautenberg (D) Menendez (D)
New Mexico : Bingaman (D)
New York : Clinton (D) Schumer (D)
North Dakota : Dorgan (D)
Ohio : DeWine (R) Voinovich(R)
Oregon : Wyden (D)
Pennsylvania : Specter (R)
Rhode Island : Chafee (R) Reed (D)
South Carolina : Graham (R)
South Dakota : Johnson (D)
Vermont : Jeffords (I) Leahy (D)
Washington : Cantwell (D) Murray (D)
West Virginia : Rockefeller (D), by Not Voting
Wisconsin : Feingold (D) Kohl (D)
I hope the following 14 reasons are forwarded over and over again until they are read so many times that the reader gets sick of reading them. I have included the URL’s for verification of the following facts:  
1. $11 Billion to $22 billion is spent on welfare to illegal aliens each year. http://tinyurl.com/zob77
2. $2.2 Billion dollars a year is spent on food assistance programs such as food stamps, WIC, and free school lunches for illegal aliens. http://www.cis.org/articles/2004/fiscalexec.html
3. $2.5 Billion dollars a year is spent on Medicaid for illegal aliens.   http://www.cis.org/articles/2004/fiscalexec.html
4. $12 Billion dollars a year is spent on primary and secondary school education for children here illegally and they cannot speak a word of English! http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt.0.html
5. $17 Billion dollars a year is spent for education for the American-born children of illegal aliens, known as anchor babies. http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt.01.html
6. $3 Million Dollars a DAY is spent to incarcerate illegal aliens. http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt.01.html
7. 30% percent of all Federal Prison inmates are illegal aliens. http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt.01.html
8. $90 Billion Dollars a year is spent on illegal aliens for Welfare and Social Services by the American taxpayers. http://premium.cnn.com/TRANSCIPTS/0610/29/ldt.01.html
9. $200 Billion Dollars a year in suppressed American wages are caused by the illegal aliens. http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt01.html
10. The illegal aliens in the United States have a crime rate that’s two-and-a-half times that of white non-illegal aliens. In particular, their children, are going to make a huge additional crime problem in the US . http://transcripts.cnn.com/TRANSCRIPTS/0606/12/ldt.01.html
11. During the year of 2005 there were 4 to 10 MILLION illegal aliens that crossed our Southern Border also, as many as 19,500 illegal aliens from Terrorist Countries. Millions of pounds of drugs, cocaine, meth, heroin and marijuana, crossed into the U. S from the Southern border. Homeland Security Report. http://tinyurl.com/t9sht
12. The National Policy Institute, “estimated that the total cost of mass deportation would be between $206 and $230 billion or an average cost of between $41 and $46 billion annually over a five year period.” http://www.nationalpolicyinstitute.org/pdf/deportation.pdf
13. In 2006 illegal aliens sent home $45 BILLION in remittances back to their countries of origin. http://www.rense.com/general75/niht.htm
14. “The Dark Side of Illegal Immigration: Nearly One Million Sex Crimes Committed by Illegal Immigrants In The United States “. http://www.drdsk.com/articleshtml
Total cost is a whooping… $338.3 BILLION A YEAR!!!
If this doesn’t bother you then just delete the message, but on the other hand, if it does raise the hair on the back of your neck, then forward it
Snopes is provided for doubters:

SEND THIS TO ALL YOU KNOW. THE ENTIRE POPULATION OF THE UNITED STATES NEEDS TO KNOW THIS INFORMATION, UNLESS THEY DON’T MIND SHARING THEIR SOCIAL SECURITY WITH FOREIGN WORKERS who didn’t pay in a dime.

LET US SHOW OUR LEADERS IN WASHINGTON “PEOPLE POWER” AND THE POWER OF THE INTERNET. IT DOESN’T MATTER IF YOU ARE REPUBLICAN, DEMOCRAT OR INDEPENDENT! KEEP IT GOING!!!

There is a difference between society and government « Democracy Sucks

March 29, 2008

There is a difference between society and government « Democracy Sucks

Great points! Doing things for others because you want to do them is one thing. Being ordered to do them by some high and mighty person, especialy in the form of government is immoral.

Ari Armstrong wrote a great piece on this subject some time ago. I’m sure that it in the archives at the Colorado Freedom Report if any are interested.

The author would do well to read up on Ayn Rand, and Objectivist theory, and I believe he would be able to explain his views much better than he is so far. I hope he keeps up the good work! 🙂

Anagram: The Apologist/Agile Hotspot « Mikey the Rhino’s Great American Rantfest

March 20, 2008

Anagram: The Apologist/Agile Hotspot « Mikey the Rhino’s Great American Rantfest

Mikey, like all of us it seems, is angry. However, Mikey is all over the board with his anger. The logic of his anger mystifies me. He is here about this, then there about that, when the root is the same. I am no fan of Obama, as you may well expect if you have been around this blog for any amount of time. Nor, am I a fan of McCain, as far as being President goes. I honor him for his service, and am worried that he truely does have PTSD. Beyond all that? I have posted elsewhere on this blog many times about both of them having to do with suppressing First Amendment and Second Amendment rights.

Niether man is in the least bit qualified to be President. Nor is Hillary…

MEETING SET TO DISCUSS GUNNISON AREA DEER, ELK LICENSE NUMBERS

March 20, 2008

The Colorado Division of Wildlife will hold a public meeting to discuss deer and elk hunting license numbers for the 2008 hunting season for the Gunnison Basin on March 28 at the Holiday Inn Express in Gunnison.  
 
Two sessions are scheduled: From 10 a.m. to noon wildlife officials will discuss Game Management Units 66 and 67; from 1 p.m. to 3 p.m., they’ll discuss GMUs 54, 55 and 551.  
 
Wildlife managers will present deer and elk population estimates, and discuss license numbers for the upcoming big game season. The information they use to determine these numbers includes the previous season’s harvest numbers, post-hunt aerial survey data and estimated winter mortality.  Each year wildlife managers strive to meet population and sex ratio objectives established in deer and elk management plans.  The harsh winter season and the ongoing feeding operation will be taken into consideration.   
 
Written comments also are welcome. Please send to: Brandon Diamond, Colorado Division of Wildlife, 300 New York Avenue, Gunnison, CO  81230. Written comments must be received by April 4.  
 
The Colorado Wildlife Commission will set license numbers on May 1 at its meeting in Grand Junction. Big game limited license applications are due April 1.  

For more information about Division of Wildlife go to: http://wildlife.state.co.us.

COLORADO GREATER SAGE-GROUSE CONSERVATION PLAN SIGNED

March 20, 2008

Regional and state directors from the Bureau of Land Management, U.S. Fish and Wildlife Service (USFWS), U.S. Forest Service, Natural Resources Conservation Service, and the Colorado Division of Wildlife (DOW) were on-hand at the DOW Headquarters in Denver today to sign the Colorado Greater Sage-grouse Conservation Plan.

The plan is designed to guide and facilitate the conservation of greater sage-grouse and their habitats. It identifies broad measures and strategies for the grouse, addressing threats that contribute to population declines, and recognizes the important conservation role played by local working groups. Local working groups consist of private landowners, public agency representatives and other interested stakeholders.

The plan has been in development for the past 2 ½ years, and is a compendium of information about Colorado populations of greater sage-grouse as well as analysis of threats facing them. A steering committee comprised of the signatory agencies developed the plan in partnership with an advisory committee made up of representatives from local working groups. Collectively, the federal agencies and DOW are responsible for the management of sage-grouse populations and habitat on public land, encouraging sage-grouse conservation on private lands, and conserving the species such that federal listing protection does not become necessary. Colorado’s effort is part of a larger conservation effort by state and federal wildlife agencies across 12 western states.

“The conservation of our sage-grouse requires active collaboration among our public and private partners at both the local and regional level to implement on-the-ground conservation actions.” said Tom Remington, Director of the DOW. “For wide-ranging wildlife species, these multi-state, multi-agency partnerships on public and private lands represent the future of conservation planning.  This plan will ensure that the best possible science and analysis will guide those conservation efforts”

“This state-wide conservation plan signals a strong commitment by all partners to maintain and improve the sagebrush ecosystem for the benefit of all sagebrush-dependent species,” said Steve Guertin, USFWS Director of the Mountain-Prairie Region. “I commend Federal and state agencies as well as the local working groups for their ongoing efforts to develop and implement conservation strategies that will not only benefit the Greater sage-grouse but numerous other species that utilize sagebrush habitats for all or part of their life cycles.”

Greater sage-grouse are designated by the DOW as a state Species of Concern. The species was petitioned for listing under the Endangered Species Act and its status is undergoing review by the US Fish and Wildlife Service to determine whether federal listing is needed.

Greater sage-grouse are the largest grouse in North America. Males are known for two large air-sacks on their chest that are inflated in elaborate courtship displays. Sage-grouse are found in areas where sagebrush is abundant. Sagebrush provides food and cover for the birds. During the winter months, sage provides the entire diet for sage-grouse, so the protection of quality sagebrush habitats is critically important for the species.

For additional information on greater sage-grouse and to view a copy of Colorado’s Greater Sage-Grouse Conservation Plan please visit: www.wildlife.state.co.us
 
 

Day of reckoning

March 13, 2008

For gun control proponents and opponents a lot is riding on a former security guard for the Supreme Court Annex. Next Tuesday , the Supreme Court will hear arguments over whether the District of Columbia’s ban on handguns and its requirement that any rifles or shotguns remain locked violates the plaintiff, Dick Heller’s, constitutional rights.

Whatever the court decides, no one expects them to end gun control any more than the First Amendment’s “congress shall make no laws” has prevented the passage of campaign finance regulations. The decision is likely to be limited to just whether a ban “infringed” on “the right of the people to keep and bear arms.”

If the D.C. ban is accepted by the court, it is hard to believe that any gun regulation will ever be struck down. If the court strikes it down, where the courts draw the line on what laws are considered “reasonable” regulations will take years to sort out .

Thus far the District of Columbia has spent a lot of time making a public policy case. Their argument in their brief to the court is pretty simple : “banning handguns saves lives.”

Yet, while it may seem obvious to many people that banning guns will save lives, that has not been D.C.’s experience.

The ban went into effect in early 1977, but since it started there is only one year (1985) when D.C.’s murder rate fell below what it was in 1976. But the murder rate also rose dramatically relative to other cities. In the 29 years we have data after the ban, D.C.’s murder rate ranked first or second among the largest 50 cities for 15 years. In another four years, it ranked fourth.

For Instance, D.C.’s murder rate fell from 3.5 to 3 times more than Maryland and Virginia’s during the five years before the handgun ban went into effect in 1977, but rose to 3.8 times more in the five years after it.

Was there something special about D.C. that kept the ban from working? Probably not, since bans have been causing crime to increase in other cities as well. D.C. cites the Chicago ban to support its own. Yet, before Chicago’s ban in 1982, its murder rate, which was falling from 27 to 22 per 100,000 in the five years, suddenly stopped falling and rose slightly to 23 per 100,000 in the five years afterwards.

Neither have bans worked in other countries. Gun crime in England and Wales increased 340 percent in the seven years since their 1998 ban. Ireland banned handguns and center fire rifles in 1972 and murder rates soared — the post-ban murder rate average has been 144 percent higher than pre-ban.

How could this be? D.C. officials say that the ban will disarm criminals. But who follows a ban and turns their guns in? Criminals who would be facing long prison sentences anyway if they were caught in a crime, or typically law-abiding citizens? By disarming normal people, a gun ban actually makes crime easier to commit.

Unfortunately, the Department of Justice has actually sided with D.C. in important parts of the case, and the court has granted Solicitor General Paul Clement 15 minutes to make his argument. While largely paying lip service to the Second Amendment being an “individual right,” the Department of Justice brief argues that an “unquestionable threat to public safety” from unregulated guns requires a lower standard must be adopted in defending it than is used to defend the rest of the Bill of Rights. But if they really believed that their evidence showed this, just as with the classic exception for the First Amendment of “falsely shouting fire in a theater,” it wouldn’t be necessary to treat the Second Amendment differently .

But what has not gotten much attention is that for the first time in U.S. history an administration has provided conflicting briefs to the Supreme Court. Vice President Dick Cheney has put forward his own brief arguing that the Second Amendment guarantees an individual right that is no different than freedom of speech.

The DOJ constitutional argument is similar to that of D.C. It argues that since the government bans machine guns, it should also be able to ban handguns. And they claim that D.C. residents still retain a right to self-defense because the city doesn’t ban locked shotguns and rifles. Locks, they claim , “can properly be interpreted” as not interfering with using guns for self-protection.

Factual errors underlie the rest of the argument — for in D.C., rifles and shotguns become illegal as soon as they are unlocked. That means the city can prosecute anyone who uses one in self-defense, even if it was locked before the incident. Is that a “reasonable” restriction on self-defense? Gunlock requirements are also associated with more deaths and more violent crime as they make defensive gun uses more difficult. Machine guns are also not banned .

It makes sense that the DOJ is backing the ban, given that it would lose regulatory power if it were struck down. As the DOJ lawyers note in the brief, striking down this ban could “cast doubt on the constitutionality of existing federal legislation.”

The Department of Justice and D.C. politicians can talk all they want about how necessary handgun bans are to ensure public safety and the “reasonableness” of the restrictions. But hopefully the Supreme Court will see past that. At some point, hard facts must matter. This is one point where public safety and individual rights coincide.

*John Lott is the author of “Freedomnomics” and a senior research scientist at the University of Maryland. Lott recently consulted with the Independence Institute on changes in D.C. crime rates. Maxim Lott is a junior at the College of William & Mary.

/**/

Fed Chairman drops a bomb

March 9, 2008

Can we say duh..? We knew ya could!

“In this environment, principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.” So said Federal Reserve Chairman Ben Bernanke this week in what The Wall Street Journal called “the equivalent of a CEO shorting his own stock.” What does that mean? It means the housing crisis, and resulting banking crisis, may be worse than we thought—much worse.

Bernanke is encouraging banks to consider writing down the principal on millions of mortgage loans as a preferable alternative to reducing interest rates—and the banks have not balked. They know that foreclosures, which net only about 50 cents on the dollar, flood the market and further drive down prices, creating a downward spiral which threatens their institutions.

There are other problems with a trend of write-downs. Primarily, many banks have already begun voluntary workouts with borrowers—more than one million since July—that modify either the loan or the repayment plan in order to help avoid foreclosure. Bernanke’s proposal may cause other borrowers to wait for either their banker to lower their principal for them or for Congress (read: taxpayers) to bail them out. As we have said before, the current mortgage problems are the result of a surge in borrowing created by low interest rates, which artificially drove up prices. Now, with the market flooded with overpriced homes and limited liquidity, prices are subject to their necessary and natural adjustments. Unfortunately, there is no easy or painless fix to the mess.

Source: Patriot Post