Archive for April, 2025

29
Apr

Slow News Day At Forbes?

Sounds like lax security at the so-called “Capitalist Tool” left the liquor cabinet open as “eminent British historian and author” Paul Johnson was walking by (he is shown below receiving the Medal of Freedom from Dubya if that’s any hint as to where his allegiance lies). He then penned this Obama Has to Be World Sheriff pining for the good old chest-beating days when the likes of Winston Churchill would act unilaterally against any boogeyman that may appear. Too many howlers in this one to dissect. But here are some hightlights.

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Since 1945 America has voluntarily accepted leadership of the democratic West and therefore, ultimately, the responsibility for preserving peace in the world.

The questions we now face as Barack Obama is subjected to his first practical tests as world security leader are: Can the U.S. continue in this role? Has it the power, the self-confidence and the will to do so? And if America declines to continue as world sheriff, will anyone else take on the duty?

Britain is the only European state that can be relied upon to fight aggression, and then only in conjunction with American leadership.

In the 1980s one of Britain’s territories, the Falkland Islands, was occupied by a second-class power, Argentina. Britain fought a solitary campaign successfully to expel the aggressor. But that effort was notable for three things: an exceptionally resolute leader at the helm, cast in the Churchill mold, Margaret Thatcher; the willingness of President Ronald Reagan to give Britain’s forces a significant measure of covert logistical support; and the characteristic unwillingness of the Continental Europeans to give Britain any help.

Russia has consistently refused to take any measures other than in direct support of its own security. This is true whether the threat comes from international terrorism or from rogue would-be nuclear powers such as North Korea and Iran. Indeed, Russia is more likely to give moral and even physical support to a lawless aggressor state than to join in a collective effort of restraint. In this respect it is still primarily motivated by the ideological and emotional impulses of the Cold War.

China is an unknown quantity as a potential peacekeeper–and is most unlikely to prove an altruistic one. So far the auguries are not encouraging. The instinct of China’s leadership is to oppose any strong moves by the U.S., even when the risk to peace is real. In a world left defenseless by the retreat of American leadership, it is hard to see China acting, except in strict defense of its own national interests.

India has neither the physical power nor the geopolitical instinct to operate outside its sphere of direct influence.

And it keeps getting better!

Though hit hard by the world recession, the U.S. still has the means to keep its armed forces strong and active all over the world. There’s no evidence that sustaining its global military effort has weakened its economy–quite the contrary. It’s worth remembering that it was only the onset of WWII in September 1939 that really ended the Great Depression in the U.S. and allowed Wall Street to regain its pre-October 1929 levels.

Way to go, Steve! Who needs a subscription to the New York Times when I can get it right here at Forbes?

29
Apr

I Miss Jimmy Carter

Well, not really. He had his problems but Forbes does remind us of one important quality Carter possessed that Obama does not.

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Feckless as President Jimmy Carter turned out to be, he had the virtue of being an entrepreneur himself–a peanut farmer. He had the wisdom to know that deregulation was better than regulation. Hence, Carter deregulated America’s airline and trucking industries and let them compete on price.

Barack Obama is not an entrepreneur. And neither is anyone close to him–not a single aide, adviser, Cabinet member or House Committee chair. Obama almost never mentions small business in his economic speeches. It is clear that he would like to divert some portion of America’s creativity away from private economic pursuits and channel it toward community building.

16
Apr

A $1.5 Billion Slap In the Face to the People of New York City

The final tally just a few months ago was impossible to figure. The most critical of economists said it could go as high as $1 billion but the new Yankee Stadium has officially weighted in at $1.5 billion (meanwhile, the opportunity costs are incalculable). All in the name of some sort of mythical notion of greatness that the people of New York can ill afford when their very livelihoods are at stake. That’s as much as the Commonwealth of PA spent to provide new playgrounds for the millionaire players and the billionaire owners of the Phillies, Eagles, Pirates and Steelers.

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From Sabathia’s fat deal to single-game ticket prices of $2,625, everything about New York’s home opener Thursday says wealth or comfort — or both.

Players can drive their cars directly into the granite-and-limestone stadium, relax in the swimming pools or sauna when they arrive, then take batting practice in the spacious indoor cages off the dugout steps. Or they can e-mail from the laptops installed in each of their lockers.

“I’m still finding my way around here,” new Yankees first baseman Mark Teixeira said. “Then maybe I can check out the Hard Rock or one of the other steakhouses.”

Sabathia, 1-1 after signing a $161 million, seven-year contract, gets the honor of the first start and left 25 tickets for family and friends. He’ll face his original big league team and be opposed by Cliff Lee.

StubHub.com has sold more than 5,000 tickets at an average price of $400 — $20 higher than the average for the final game at the old Yankee Stadium last year.

That’s quite a leap from the opening of the original Yankee Stadium on April 18, 1923, when a man was arrested for trying to scalp a $1.10 grandstand ticket for $1.25.

It’s amazing the kind of salaries you can afford when you don’t need to foot the bill for your own ballpark. Meanwhile, the poor Mets languish in their $800 million dollar Citi field.

14
Apr

Want Unwanted Attention From the Feds? Run a Solvent Bank.

Excellent article in Forbes. Andy Beal runs his bank in a prudent manner and that seems to raise red flags in Washington.

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Beal has barely got a dime from the feds. A self-described "libertarian kind of guy," Beal believes the government helped create the credit crisis. Now he finds it "crazy" that bankers who acted irresponsibly are getting money and he’s not. But he wants to exploit their recklessness to amass his own fortune. "This is the opportunity of my lifetime," says Beal. "We are going to be a $30 billion bank without any help from the government." (A slight overstatement: He is quick to say he relies on federal deposit insurance.) Not much next to the trillion-dollar balance sheets of the nation’s troubled banks, but the lesson here might be revealed in the fact that this billionaire is not playing with other people’s money–he owns 100% of the bank and is acting accordingly.

Then came a shocker: Amid one of the most reckless lending sprees in history, regulators focused on the one bank that refused to play along. Beal’s moves confused and worried them, and so they began to probe him with questions. "What are you doing?" he recalls them asking. "You’re shrinking yet you’re raising capital?"

Next, the credit rating agencies started pestering him about his dwindling loan portfolio. They never downgraded him but scolded him for seeming not to have a "sustainable" business model. This while their colleagues were signing off on $32 billion of bum collateralized debt obligations issued by Merrill Lynch.

Downgraded for having a “sustainable” business model? We are truly in Bizarro World.

14
Apr

The Truth Behind “Green Jobs”

A study by Dr. Gabriel Calzada, an economist at Juan Carlos University in Madrid gives the lie to Obama Administration claims that Spain’s experience with “Green Jobs” somehow points to a simultaneous solution of both economic and environmental problems.

The truth about so-called “Green Jobs” is the same as the truth about “protecting” jobs in the steel industry, or the car industry – it would be cheaper and less destructive to simply pay the “Green Jobs” people to do nothing;

Washington, D.C. – While some U.S. politicians point to Spain as a model for how government subsidies can create “green jobs,” a groundbreaking new study documents that every renewable job created by the Spanish government destroyed an average of 2.2 other jobs. Each “green” megawatt installed in Spain destroyed 5.39 jobs in non-energy sectors, the study found.

Moreover, only one in 10 jobs created in Spain were of a permanent nature, the study found, with two-thirds consisting of temporary jobs in construction, fabrication and installation jobs; one quarter were positions in administration, marketing and projects engineering; and only one of ten was related to more permanent operations and maintenance of renewable power systems.

If U.S. subsidies to renewable producers achieve the same result — and President Obama has held Spain up as a model for how to subsidize renewables — the U.S. could lose 6.6 million to 11 million jobs while it creates three million largely temporary “green jobs,” the study predicts.

The study was prepared under the direction of Dr. Gabriel Calzada, an economics professor at Juan Carlos University in Madrid. “Spain’s experience (cited by President Obama as a model) reveals with high confidence, by two different methods, that the U.S. should expect a loss of at least 2.2 jobs on average, or about 9 jobs lost for every 4 created, to
which we have to add those jobs that non-subsidized investments with the same resources would have created.”

“The study’s results demonstrate how such ‘green jobs’ policy clearly hinders Spain’s way out of the current economic crisis, even while U.S. politicians insist that rushing into such a scheme will ease their own emergence from the turmoil. . This study marks the very first time a critical analysis of the actual performance and impact has been made,” Dr. Calzada wrote in the study’s introduction.

“As President Obama correctly remarked, Spain provides a reference for the establishment of government aid to renewable energy,” the study notes. “No other country has given such broad support to the construction and production of electricity through renewable sources. The arguments for
Spain’s and Europe’s ‘green jobs’ schemes are the same arguments now made in the U.S., principally that massive public support would produce large numbers of green jobs. The question that this paper answers is ‘at what price?’”

The study calculated that, since 2000, Spain spent $774,000 to create each “green job”, including subsidies of more than $1.3 million per wind industry job. It found that creating those jobs resulted in the destruction of nearly 113,000 jobs elsewhere in the economy, or 2.2 jobs destroyed for every
“green job” created. Principally, jobs were lost in the fields of
metallurgy, non-metallic mining and food processing, beverage and tobacco.

“The loss of jobs could be greater if you account for the amount of lost industry that moves out of the country due to higher energy prices,” Dr.Calzada said recently in an interview with Bloomberg News.

Ironically, as noted recently by the Institute for Energy Research, the U.S. Energy Information Administration (EIA) has calculated that Spain’s annual emissions of carbon dioxide have increased by nearly 50 percent since the launch of the subsidized “green jobs” program.

“The price of a comprehensive energy rate, paid by the end consumer in Spain, would have to be increased 31 percent to begin to repay the historic debt generated by this rate deficit mainly produced by the subsidies to renewables, according to Spain’s energy regulator. Spanish citizens must therefore cope with either an increase of electricity rates or increased
taxes (and public deficit), as will the U.S. if it follows Spain’s model,” the study found.

The people running things have an implacable hatred of the market. This is no doubt because an unfettered free market works so much better at allocating resources than all of their plans and schemes do.

One wonders how they can go on in the face of such constant repudiation of their views, except that the financial rewards are still nonzero (for them). And as Hayek said in that luminous “Meet The Press” discussion, “the intellectual is infatuated with the idea of a system that he can control.”

So, basically, we are ruled by a panoply of grownups with the mentality of spoiled 14-year-old girls.

10
Apr

Armed Crew Members Might have Helped

Just saw a little piece of irony from the BBC today regarding pirates.

Somalia has been without an effective government since 1991, fuelling the lawlessness which has allowed the pirates to thrive.

Uh, yeah. I suppose a few armed crew members wouldn’t have made a difference and be much more cost-effective … leaving the ship safer for more pirates like this!

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05
Apr

Why I Love Guided By Voices

People sometimes ask me “why are you so fired up about some stupid band that has been out of existence for 5 years, anyway?

Well, there’s this;

GBV Teenage FBI on some Brit TV show