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July 8, 2011

Digest

The Foundation

“The aim of every political constitution is, or ought to be, first to obtain for rulers men who possess most wisdom to discern, and most virtue to pursue, the common good of the society.” –James Madison

Government & Politics

Which Elephant in the Room Is the Leader?

Republican presidential candidates recently released their second-quarter fundraising numbers. The results indicate that perhaps voters aren’t yet warming up to most of the contenders, though perhaps that’s merely the effect of having so many candidates. One of them must emerge with a large enough groundswell of enthusiasm to counter Barack Obama, who expects to approach $1 billion in fundraising for his re-election effort. Fortunately, the conservative message won’t need anywhere near $1 billion to resonate with voters.

There are 10 declared candidates and at least four more on the fence, though only a handful of these are serious contenders. In alphabetical order, the declared candidates are Michele Bachmann, Herman Cain, Newt Gingrich, Jon Huntsman, Gary Johnson, Thaddeus McCotter, Ron Paul, Tim Pawlenty, Mitt Romney and Rick Santorum. Possible candidates include John Bolton, Rudy Giuliani, Sarah Palin and Rick Perry.

Some names are more familiar than others, and it shows in fundraising. Mitt Romney cashed in on his wide name recognition and “next guy in line” status to raise $18.25 million in the second quarter – at least four times as much as anyone else. He leads in most polls, though he seems to max out around 35 percent support as there seems to be little enthusiasm for a former Massachusetts governor who signed a universal health care law all too similar to ObamaCare.

Some other numbers: Rep. Ron Paul (R-TX) raised $4.5 million, former Minnesota Gov. Tim Pawlenty brought in $4.2 million, former Utah governor and Obama-appointed ambassador to China Jon Huntsman raised $4.1 million (nearly half of it his own), businessman Herman Cain reported $2.5 million and former House Speaker Newt Gingrich collected $2 million. Gingrich also has $1 million in debt and his finance team quit the campaign along with a dozen other staffers. Other candidates haven’t yet announced totals. So far, the combined totals equal little more than half of Obama’s projected second quarter fundraising of $60 million.

Bachmann is the strongest challenger to Romney in the polls (trailing by one point in Iowa) and she has momentum, but as we said previously, she has a big hurdle to overcome as a sitting U.S. representative. The probable entrance of Texas Gov. Rick Perry could put a dent into Bachmann’s support as well. In the end, whoever emerges as a strong and credible alternative to Romney could win the nomination.

Given the success John McCain enjoyed in the 2008 primaries after being counted down and out, it’s probably too early to declare anyone “toast,” but all the same, we would put Johnson, Santorum and Gingrich in the “not-quite-but-might-as-well-be-toast” column. Cain is uncomfortably close, too, given staff resignations in Iowa and New Hampshire. Johnson is a libertarian (a problem for many social conservatives) with too little name recognition and zero “buzz,” and former Pennsylvania Senator Santorum hasn’t gained traction either, plus he committed the sin of helping then-RINO Sen. Arlen Specter defeat now-Senator Pat Toomey in 2004. As for Gingrich, he has enough baggage for a three-month safari to see real elephants.

At this point, we see the race as among Romney, Bachmann and Pawlenty – Perry, too, if he declares. That’s not a reflection of our preferred candidates, and it will no doubt cause some Ron Paul supporters to have a coronary event, but we’re just calling it as we see it. You may now send us your complaints.

News From the Swamp: The Limit on Debt Discussions

Congress cut short its July 4th recess and Barack Obama called for a bipartisan congressional gathering this week to hammer out a debt reduction deal as the Aug. 2 “default” deadline looms. That’s when the Treasury Department claims the federal government will no longer be able to meet its fiscal obligations. Little progress has occurred since the last time we reported little progress, but many mixed messages abound. Senate Democrats claim they have a budget that will save $4 trillion over 10 years through a mix of spending cuts and tax hikes, though Senate Budget Committee Chairman Kent Conrad (D-ND) has yet to produce anything on paper. There’s no reason to expect one any time soon since the Democrats haven’t produced a budget in close to 800 days. Besides, even those trillion-dollar “cuts” over 10 years amount to a hill of beans when the federal government is projected to spend almost $46 trillion by then.

Sen. John Cornyn (R-TX) hinted that Republicans might accept a mini-deal that would postpone larger cuts and revenue hikes until after the 2012 election, but the White House rejected the idea outright, and House Speaker John Boehner said nothing about it. Rep. Paul Broun (R-GA) has even submitted a bill that would lower the debt ceiling by fiscal year’s end.

Democrats want tax increases targeting the energy industry and individuals making over $250,000 a year, but even they realize that new taxes would blunt the already meager economic recovery. One possibly encouraging note, however, is that Obama’s latest offer includes entitlement reform. The bad news is that, as usual, defense spending is one of his biggest targets, with proposed cuts to the tune of $700 billion over a decade, nearly double Obama’s original proposal.

Some Democrats, though, came up with an idea that plays perfectly to their interpretation of the Constitution. They believe a clause in the 14th Amendment gives the Treasury Department the power to continue to borrow money to pay the country’s obligations even if the debt limit is exceeded. The clause states that the “validity of the public debt of the United States … shall not be questioned.” If this option is taken, and both parties can therefore claim to be off the hook on raising the ceiling (assuming Congress doesn’t sue in court), it will be yet another constitutional travesty perpetrated by a lawless administration.

The BIG Lie

“We actually now have the lowest tax rates since the 1950s. Our tax rates are lower now than they were under Ronald Reagan. They’re lower than they were under George Bush – senior or George Bush, junior.” –Barack Obama

The Washington Examiner’s Conn Carroll explains, “According to The Tax Foundation’s Federal Individual Income Tax Rates History table, the top marginal tax rate is currently 35 percent. In 1992, under President George H.W. Bush the top marginal rate was 4 points lower than today’s rate at 31 percent. In 1988, under President Ronald Reagan the top marginal rate was 7 points lower than today’s rate at 28 percent. It is true, however, that tax revenues collected as a percentage of GDP are at historic lows.”

This Week’s ‘Alpha Jackass’ Award

Here’s what our hypocrite in chief had to say about the debt limit in 2006, when, as a senator, he voted against increasing the ceiling:

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”

From the Left: Biden Threatens Union Thugs

Vice President Joe Biden continued his near-perfect gaffe record at an appearance at a Teamsters convention in Las Vegas. If “any of you guys vote Republican,” Biden warned the union members in attendance, “I’m not supposed to say, this isn’t political – don’t come to me if you do! You’re on your own, Jack!”

The bad news is that there’s already been grumbling among some of Obama’s union friends lately, even after all the favors he’s doled out to them. Obama must continue to suck up to Big Labor if he hopes to once again take advantage of its get-out-the-vote machine in 2012. Stark evidence of this sucking-up can be seen in the recent actions of Obama’s National Labor Relations Board and its brazen efforts to shut down a billion-dollar Boeing factory in the right-to-work state of South Carolina.

Strauss-Kahn Case Collapses

New York prosecutors dropped all sexual assault charges against former managing director of the International Monetary Fund (IMF) Dominique Strauss-Kahn last week, stating that the questionable credibility of his accuser made their case unsustainable. Strauss-Kahn was accused of sexually assaulting a maid in his $3,000 per night hotel room. This leaves basically two possibilities: Either he’s going to get away with rape because of the questionable character of the maid, or his reputation has been sullied by a woman with whom he had consensual intercourse.

Strauss-Kahn’s supporters in his native France hope that he can rebuild his image and return as a Socialist candidate for the French presidency. In spite of his victory in this case, however, Strauss-Kahn’s sordid past may yet prevent that from happening. A French author this week formally accused Strauss-Kahn of sexually assaulting her in 2003. The timing of her filing charges was called into question, but she has been on the record with her story since 2007. It’s unclear what path Strauss-Kahn’s life will take now, but his political career is in trouble. The fact that such a man could rise to a level of prominence in the IMF should be examined closely by the U.S., which holds the largest position in the organization.

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National Security

Warfront With Jihadistan: Elevating the Muslim Brotherhood

We thought it was impossible for Secretary of State Hillary Clinton to top her previous statement calling Syria’s Bashar al-Assad a “reformer,” but one just shouldn’t underestimate the Clintons. Late last week, as most Americans had their attention focused on the upcoming Independence Day holiday, Clinton let loose this howler: “We believe … that it is in the interests of the United States to engage with all parties that are peaceful and committed to nonviolence, that intend to compete for the [Egyptian] parliament and the presidency. And we welcome, therefore, dialogue with those Muslim Brotherhood members who wish to talk with us.” It’s bad enough that the usual assortment of useful idiots on the Left advise dealing with the Brotherhood as just another political party. But for the Obama administration to legitimize a terrorist organization in this way is both foolish and dangerous.

There is no way to square the words “parties that are peaceful and committed to nonviolence” with the Muslim Brotherhood’s own stated goal of destroying Western civilization and imposing Sharia law at gun point. We should no more be talking to them about Egypt’s political future than we should talk to the Revolutionary Guard Corps about Iran’s future. The only future the Brotherhood sees for Egypt is the Saudi style of government, but with even less religious tolerance and respect for democratic principles, if that’s possible. Steering Egypt toward some kind of modern, democratic government was going to be hard enough. Now Obama and Clinton have invited the sworn enemies of those values into the process.

TSA Nightmare Continues

The evidence of the incompetence of the Transportation Security Administration (TSA) just keeps rolling in. The recent case of a 95-year-old cancer patient forced to remove her adult diaper by TSA employees is now well known, but this week’s story tops that. Olajide Oluwaseun Noibi is a 24-year-old Nigerian immigrant who was recently allowed to board a plane and fly from New York City to Los Angeles using an expired boarding pass that didn’t have his name on it. Noibi apparently got his free ride using a Virgin American boarding pass that a New York resident had lost. Even though the pass was for June 23, Noibi used it on June 24 and easily cleared the TSA’s checkpoint at JFK. His screener was suspicious enough to call her supervisor, but the supervisor didn’t notice that the boarding pass was not for Noibi, so he continued to the gate, where the Virgin Atlantic gate agent then cleared him to board.

During the trip, passengers complained that Noibi smelled bad, and airline officials finally figured out that he was sitting in an unsold seat and they alerted authorities from the air. Los Angeles police, TSA officials, and an FBI agent met Noibi when the plane landed but, incredibly, he was released without being charged. Noibi was eventually arrested a week later for trying the same scheme to board a Delta flight from Los Angeles to Atlanta. He had more than 10 boarding passes in various people’s names.

Meanwhile, the Obama administration warned airlines that terrorists might try to surgically implant explosives into people to try to beat airport security measures. Who knows what the TSA will have passengers do to clear that hurdle, but the safe money says it won’t be foreign nationals that receive increased scrutiny. Rather, it will be normal American people, including the elderly and children, who feel the invasive hands of the TSA.

Department of Military Correctness: Houston, We Have a Problem

The Houston Chronicle reports, “The [Veterans of Foreign Wars] and the American Legion say that on at least four occasions in the last two months, [U.S. Department of Veterans Affairs] officials told them that prayer and religious speech could no longer be included in burial rituals they take part in at the Houston cemetery unless families submit a specific prayer or message in writing to Arleen Ocasio, the cemetery’s director.” File this with an ever-growing number of egregious cases in which the government prohibits the free exercise of religion.

U.S. District Judge Lynn Hughes has given the government until July 15 to respond to a lawsuit alleging that this government policy is a prohibited “prior restraint” on free speech. Though a separate legal question from the “free exercise” clause of the First Amendment, the “prior restraint” imposed on free speech likely won’t meet the constitutional test as currently interpreted. This inane and politically correct policy should be buried, and the VA Cemetery Director should be ousted as well. The Houston VA cemetery is filled with those who served to preserve and protect our Constitution. Unfortunately, Director Ocasio seems unable to comprehend the plain language of that document and thus dishonors those buried there. As one protestor said, “It’s a slap in the face.”

This madness is not limited to Houston, however, as evidenced by the recent attempts to have any reference to “Heaven” or other religiously associated words removed from public street names and buildings in New York City in remembrance of those who gave their lives on 9/11. Atheists claim to be offended by such names and are seeking judicial recourse to have them removed. Freedom from offense and freedom from insult are not – pardon the offense – rights “endowed by our Creator.” Besides, our nation’s Constitution guarantees freedom of religion, not freedom from it.

Hasan to Face Military Trial, Death Penalty

U.S Army Maj. Nidal Hasan, the Muslim psychiatrist charged with 13 counts of premeditated murder and 32 counts of attempted premeditated murder in the November 2009 mass shooting at Fort Hood, Texas – the worst in history at a military installation – is to be tried in a military court. If convicted, he faces the death penalty. As Hasan opened fire on his fellow soldiers, all of whom were unarmed, he shouted “Allahu Akbar!” which is Arabic for “god is great.” Hasan was shot and paralyzed from the waist down by a civilian police officer, but not before killing 13, one of whom was carrying an unborn child.

From the start, the Obama administration and the mainstream media have downplayed his Muslim religion. Indeed, it took the Associated Press until the twelfth and final paragraph of its most recent dispatch to mention it. Had this same political correctness not infiltrated the military to the point that Hasan’s superiors ignored his many behavioral warnings, 14 more people would be alive today.

More Military Correctness, Courtesy of the Ninth Circuit

Speaking of political correctness, a three-judge panel on the Ninth Circuit Court ruled Wednesday that the military must immediately abandon its “Don’t Ask, Don’t Tell” policy. The Pentagon and each branch of the armed forces are preparing to end the policy, but until the defense secretary and the chairman of the Joint Chiefs of Staff sign off, the repeal doesn’t go into effect. So much for military readiness.

Business & Economy

Income Redistribution: Obamanomics in Action

The truth always comes out, as Barack Obama is discovering. Despite having the Leftmedia in his corner, his epic mishandling of the economy is coming to light, and people are taking notice. The economy added a paltry 18,000 jobs in June, “far less than expected.” (Who are these experts that continue putting forth wrong expectations?) This follows just 25,000 added in May, and, for the second straight month, the unemployment rate increased – to 9.2 percent.

Things aren’t so bad for members of Obama’s staff, though. The administration recently released a report confirming that 454 White House aides will earn a whopping $37,121,463 this year. By law, the information must be made public, but the ever-savvy Obama released the information on Friday afternoon before the July 4th holiday weekend. Obama said that those salaries had been “frozen,” but apparently that means that only 75 percent of staffers got raises between 2009 and 2010. The average increase was about 15 percent.

The report also excluded the identities of the 41 Obama staffers who owe $831,000 in back taxes. One would think a president so outraged at the tax breaks afforded to “millionaires, billionaires and corporate jet owners” would have a zero tolerance for this sort of thing.

Also late Friday afternoon, the White House’s Council of Economic Advisers released some interesting literature – a report on the impact of the stimulus. The three advisers, handpicked by Obama himself, tried to sugarcoat the numbers, but the results are clear: The 2.4 million jobs that the stimulus has allegedly “saved or created” have cost, er, $666 billion, which comes out to $278,000 per job. The most telling part of all this is that six months ago, the stimulus had supposedly saved 2.7 million jobs. In other words, it’s now leeching jobs from the economy instead of adding them.

Some of those jobs may be coming from the banking industry. Banks across the country – including the country’s largest, Bank of America – are closing branches left and right. In fact, for the first time in 15 years, they’re closing them faster than they can open them. For Obama, self-proclaimed champion of the poor, this exposes another ironic truth: Low-income communities could be those most affected by the closures.

Regulatory Commissars: Clogging the Jobs Pipeline

It’s no surprise when the Environmental Protection Agency stands in the way of job creation because it happens with such regularity. However, in the case of Keystone XL, a proposed pipeline to transport diluted bitumen from Alberta, Canada, to Gulf Coast refineries, even the State Department is complicit in blocking new jobs. TransCanada applied for the proper permits in September 2008, but has been stymied by the EPA and State Department despite the fact that Canada has been piping crude oil into the U.S. for decades.

In fairness, the State Department appeared ready to approve the pipeline after a 90-day comment period, but the EPA objected, asking State to offer more information, which it did after another 90-day comment period. Still, it wasn’t enough for the EPA, which rejected the report as “inadequate.” EPA’s objections would result in years of further study, and so the State Department is sitting on it.

TransCanada estimates that the pipeline would create 13,000 jobs – and not just jobs, but union jobs for another Democrat constituency – as well as 118,000 “spin-off” jobs during two years of construction. The company also says the pipeline would bring $20 billion in investment to the U.S., as well as $600 million in state and local tax revenue during construction and $5.2 billion in property taxes over its life. House Speaker John Boehner asked Barack Obama via Twitter, “Where are the jobs?” Part of the answer is sitting on the desks of State Department and EPA bureaucrats.

A New Mexican Truck Agreement

The United States and Mexico signed another agreement Wednesday allowing Mexican trucks access to American highways. The original agreement – NAFTA – provided for the flow of goods across the border. Generally speaking, U.S. farms and businesses supported the effort, while unions, particularly the Teamsters, opposed it. There are also concerns over immigration, drug trafficking and the safety of the trucks and their drivers.

The Bush administration instituted a pilot program allowing for certification for Mexican trucks, but Congress defunded it in 2009. Mexico responded with tariffs on about 100 U.S. products, costing the U.S. some $2 billion in exports. Wednesday’s agreement means the program will be reinstated and about half of the tariffs will be removed immediately with the rest to follow when the trucks actually start rolling.

GM Inflating Stock?

Government Motors (a.k.a. GM) truck inventories have been piling up, as the Detroit auto giant seems to have overestimated the number of trucks it would sell this year. GM’s truck inventory is now at 122 days, compared to Ford, which is running about 79 days. (GM itself averaged 78 days between 2002 and 2010.) One effect of this inventory build-up is that GM’s stock prices are increasing as “sales” grow. In other words, GM has sold these trucks to dealers and put up good numbers for stockholders. The company pulled stunts like that before its bankruptcy, too, and we all saw how well that turned out.

This, though, is even worse. The U.S. government still owns about a fourth of GM, and the Treasury Department has said that it won’t sell until after second quarter earnings are reported. If stock prices are artificially inflated and Treasury sells, “Main Street” investors are the ones left with deflating stock in the ensuing months. Peter Nesvold, a Jefferies & Co. analyst, says, “It’s unbelievable that after this huge taxpayer bailout and the bankruptcy that we’re right back to where we were.” Nesvold has a “hold” rating on GM’s stock because “there’s no credibility.” He also asked, “Is GM falling into old, bad habits?” It appears so.

Culture & Policy

Second Amendment: Melson Testifies on Gunrunner

The scandal surrounding Operation Fast and Furious (also known as Project Gunrunner), the Bureau of Alcohol, Tobacco, Firearms and Explosives’ program to “track” gun purchases heading to Mexico, deepened this week. On July 4, acting ATF Director Kenneth Melson testified before House and Senate investigators without the knowledge of the ATF or the Department of Justice. According to Melson, in spite of denials from the Justice Department, ATF agents took no action when witnessing transfer of firearms from straw purchasers to third parties. He also testified that he was “not allowed to communicate to Congress,” and that “Justice Department officials directed [ATF’s senior leadership] not to respond and took full control of replying to briefing and document requests from Congress.” During his confirmation hearings, then-acting Deputy Attorney General James Cole, who was confirmed on June 28, withheld important information from Congress. In other words, there has been a cover-up.

The White House has remained coy about what Barack Obama knew and when he knew it, but there’s no question this scandal is bigger than the media are letting on. In fact, the whole project was funded by the stimulus. How many have to die with weapons illegally transferred to Mexico before there is justice?

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Village Academic Curriculum: NEA Endorsement Can’t Wait

The 2012 elections are still 16 months away, but the National Education Association is already in campaign mode. Making its earliest endorsement ever, the NEA this week voted to back Barack Obama – never mind that the Republican nominee is still unnamed. Of course, the NEA has never endorsed a Republican for president, so its choice really is no surprise.

Yet while the NEA may think it’s a step ahead, its “look for the union label” polices are looking more and more backward. Indeed, even as the group is raising funds to fight attempts to curb collective bargaining (after all, who cares about kids, so long as that union salary is secure?), states across the country are moving toward educational choice for parents and students. There are 13 states that enacted school-choice laws in 2011, with another 28 considering such bills.

Under these initiatives, school vouchers, expanded charter school opportunities, tax credits for education expenses and the like will allow money to follow the child, helping pave the way for student-centric education reform. Needless to say, the NEA is none too pleased. After all, choice is the first step toward breaking the vice-grip the NEA and local education unions have over education policy, practice and purse strings. They won’t cede such control without a fight.

Reagan’s Legacy Celebrated Again Across the Pond

Most Americans of a certain age fondly recall the days of Ronald Reagan’s presidency, which featured a strong America with a thriving economy. Yet to those in Europe, the Reagan era had a deeper meaning as his leadership hastened the end of the Soviet threat. Sadly, Americans have wasted much of Reagan’s legacy through a succession of inferior leaders. But those formerly under the Soviet boot heel have not forgotten.

Over the last few weeks, our 40th president has been remembered with the unveiling of a statue overlooking the last Soviet monument in Hungary and a celebratory mass in Poland to honor Reagan’s teaming up with Pope John Paul II to assist in liberating that nation. Upcoming will be a conference in the Czech Republic on how Reagan may have responded to current European issues, a gathering that will feature former Secretary of State Condoleezza Rice.

Nor has Great Britain forgotten. Former Prime Minister Margaret Thatcher, who along with Reagan and Pope John Paul II helped to shape the post-Cold War world, is the last survivor of the Dynamic Trio. Unfortunately, she was too ill to attend the unveiling of a bronze statue of Reagan outside the American Embassy on Grosvenor Square – his likeness joined those of other well-regarded American presidents Franklin Roosevelt and Dwight D. Eisenhower.

While Lady Thatcher could not attend the ceremony, a quote attributed to her about Reagan, “the second most important man in my life,” will be immortalized as well: “Ronald Reagan won the Cold War without firing a shot.” A grateful Europe appears thankful for Reagan’s support and legacy of Liberty as the 100th anniversary of his birth is celebrated.

And Last…

Students from Arizona State University’s Polytechnic campus in Mesa have diagnosed a serious problem: There’s too much dog waste at Cosmo Dog Park in Gilbert. So the students hope to design a “dog waste digester” that they will use to convert that waste into methane gas to use as energy. That energy will light a street lamp in the park, with a little help from dog owners, of course. According to Arizona Central, “Instead of throwing waste into the garbage, owners would collect it in supplied biodegradable bags, drop them into the digester and turn a hand crank to stir the mixture so the methane rises to the top, where it is burned constantly in the lamp.” The total cost for the project: $25,000. This brings a whole new meaning to the question, “What can brown doo-doo do for you?”

Semper Vigilo, Fortis, Paratus et Fidelis!
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