Saturday

Thursday

WHAT I THINK......PETER GRIER

OK, it’s hard to really say anyone “wins” a debate, given that there’s no scoring, and Wolf Blitzer doesn’t come out afterward and hand out a medal. In general, last night’s word fight was high-minded and good for everybody, except maybe Herman Cain, since he didn’t say much.

CNN’s Blitzer did well, too – drawing candidates into real conversations, and emceeing questions from assembled think-tank luminaries. The whole thing was a real debate in that it juxtaposed real differences of opinion.

Which is where Congressman Paul comes in. It was him against the Republican world last night. His positions are often very different from those of his GOP opponents, and he defended them with his typical well-honed points. You’re reminded once again that he’s been at this for decades. Even longer than Mitt Romney.

University of Virginia political scientist Larry Sabato tweeted last night that Paul tied with Newt Gingrich as last night’s winner. Sabato gave both a “B+.”

New York Times polling analyst Nate Silver similarly gave Paul a “B+.” He thought both Newt and Jon Huntsman rated an “A,” however.

Paul “sounded authoritative and made his points clearly” judged Politico’s Maggie Haberman.

Our own reaction to Paul was that nobody laid a glove on him, despite the fact that many of his positions are controversial both within the GOP and in US politics at large. (He said foreign aid is “worthless,” for instance. Really? Not even the other GOP candidates went that far. US cash is paying for much of Africa’s fight against HIV/AIDS, for instance. Is that not money well spent?)

But take the opening sequence, when most all the other candidates supported Patriot Act antiterror provisions as necessary intrusions on liberty at a time of danger for the US. Paul was having none of that.

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“I think the Patriot Act is unpatriotic, because it undermines our liberty,” said Paul in the opening moments of the debate.

The longtime libertarian was just getting warmed up.

“So if you advocate a police state, you can have safety and security, and you might prevent a crime, but the crime then will be against the American people and against our freedoms,” said Paul.

Paul then went on to differ with the crowd by saying the US should “let Israel take care of itself.” That meant, apparently, don’t meddle with Israel if it wants to bomb Iran, but don’t give it any money to do the deed, either.

(As an aside, we’ll ask this: Did the Texas congressman let slip some interesting and closely guarded info in his response? He said, “Israel has 200, 300 nuclear missiles, and they can take care of themselves.” That’s on the high end of the estimates experts outside the US government make as to the extent of Israel’s nuclear program.)

Then there was the whole defense budget-cutting thing, in which Paul and Mitt Romney went at it.

First Romney opposed the possibility of a trillion dollars being cut from the defense budget. That might happen because the congressional super committee didn’t figure out a way to reduce the budget by $1.2 trillion over 10 years, so automatic cuts might take effect next year.

“They’re not cutting anything out of anything,” replied Paul. “All this talk is just talk.”

Paul appeared to be referring to the fact that nothing is in stone yet – some in Congress want to repeal the automatic cuts, many of the “cuts” are reductions in growth as opposed to actual reductions in the size of government programs, and so forth.

Romney disagreed. He ticked off a list of weapons systems Congress has already trimmed. “They’re cutting ... into the capacity of America to defend itself,” he said.

Monday

AND WHY NOT?

ON THE SUPER COMMITTEE

This week marks the deadline for the so-called congressional Super Committee to meet its goal of cutting a laughably small amount of federal spending over the next decade. In fact the Committee merely needs to cut about $120 billion annually from the federal budget over the next 10 years to meet its modest goals, but even this paltry amount has produced hand-wringing and hysteria on Capitol Hill. This is only cutting proposed increases. It has nothing to do with actually cutting anything. This shows how unserious politicians are about our very serious debt problems.

To be fair, however, in one sense members of the Super Committee face an impossible task. They must, in effect, cut government spending without first addressing the role of government in our society. They must continue to insist the federal government can provide Social Security, Medicare, and Medicaid benefits in the future as promised, while maintaining our wildly interventionist foreign policy. Yet everyone knows this is a lie.

Keep in mind that the 2011 federal deficit alone was about $1.3 trillion, which means the Super Committee needs to cut that much PER YEAR rather than over a 10 year period. If Congress ever hopes to address its debt problem, it must first stop accumulating any new debt immediately, in 2012.

Federal revenue likely will be about $2.3 trillion in fiscal 2012. The 2004 federal budget was about $2.3 trillion. So Congress simply needs to adopt the 2004 budget next year and the federal government will balance outlays and revenue. That’s all it would take to produce a balanced budget right now. Was the federal government really too small just 7 years ago, in 2004? Of course not. Only Washington hysteria would have us believe otherwise.

Yet our Republican and Democrat friends on the Super Committee want to take 10 years, or even 30 years, to produce a balanced budget.

Government spending isn't just wasteful; it is often actively harmful to stated goals. The Super Committee could simply apply 2004 spending levels across the board and a tremendous victory for fiscal sanity would be accomplished.

What seems more likely, however, is a rearrangement of the tax code in an attempt to bring in more revenue. Deductions and credits will be taken away, and the Bush tax cuts will be allowed to expire. As a result, less money will remain in the private sector to create jobs and produce economic growth. The Super Committee has an opportunity to take a small baby step in the right direction. Instead, they no doubt will take this opportunity to raise taxes and make everything worse. But increasing taxes will only diminish freedom and deepen the recession. Instead of looking for ways to hike taxes under the guise of “raising revenue,” the Super Committee should put forth a plan of real spending cuts to put America back on the path to liberty and prosperity.

Tuesday

WHAT I THINK......BILL FANGIO

If it is the case that elected officials reflect the desires of the voters then we are in a world of hurt. Andy Cobb and the Partisans recently appeared at a rally carrying a sign that read, Obama is a Keynesian. Many were outraged and took Cobb to task for suggesting that President Obama was from Kenya. And, there is the American electorate for you – they don't know the difference between a country and an economic system.

These same people populate the comment strings whenever there is a news story regarding Dr. Ron Paul for President. Here are some of their reasons why Paul should not be President.

1) He is an old coot. Now there is a comment that really exercised the gray matter. Of course, coot refers to a kind of bird but can also mean a harmless, simple person. I agree that Paul is harmless, but to suggest he is simple misses the mark by a few light years. No other candidate for office of the President of the United States can meet Paul head on in a debate without coming out looking like a fool. If you don't agree with that statement just read a few of Paul's books, Keep a dictionary handy.

2) He is a nut. I suspect this shallow comment means that Paul is foolish, eccentric, or crazy. No proof is offered. It is just a baseless ad hominem attack.

3) He is an isolationist. This comment is clear evidence that the writer has made no effort at all to understand Paul's foreign policy. It just happens to be identical to that of Thomas Jefferson. "Peace, commerce, and honest friendship with all nations-entangling alliances with none." If we had followed that foreign policy throughout our history almost no wars would have been fought. We fought a war in Vietnam during the 1960's. EVERY day in 1968 we brought an average of 80 boys a day home in body bags. Why did we fight that war? Containment? How did that work out? Then we normalized relations with Vietnam in 1979 and began the foreign policy of Paul and Jefferson. Guess what? We have a friend in Vietnam and trade regularly. What we could not do with bombs and bullets we have accomplished with commerce, friendliness, and example. Paul is not an isolationist – he is for non-intervention.

4) He doesn't understand that we are at war with Islam. Really? Is that the express or implied policy of the United States? Shall we ask Congress to formally declare war on 1.5-billion Muslims? Islam may be a problem but any debate should take place in the free market place of ideas. Paul understands this quite well.

5) He is unelectable. This comment comes from watching too much television rather than thinking for oneself. A reporter put that question directly to Paul during one of the debates in 2008 without even realizing he was insulting the voters in Lake Jackson Texas who had consistently elected Paul to Congress multiple times. Did the reporter think that the voters of Lake Jackson were someway not demographically representative of the nation as a whole? More likely the reporter did not think at all.

6) He favors letting Iran have nuclear weapons. No, Paul does not believe in interfering in the internal affairs of other nations. Many nations possess nuclear arsenals. What is special about Iran? Test your memory – when was the last time Iran attacked anyone?

Many other comments are similarly inane. He is not a pure Libertarian, he is pro-life, he doesn't look presidential, his supporters are nuts, etc. So, will Paul be given the opportunity to heal the nation? Probably not. Because as a people we are worse than ignorant, we think government is good.

EUROPEAN DEBT CRISIS THREATENS THE DOLLAR

The global economic situation is becoming more dire every day. Approximately half of all US banks have significant exposure to the debt crisis in Europe. Much more dangerous for the US taxpayer is the dollar's status as reserve currency for the world, and the US Federal Reserve's status as the lender of last resort. As we've learned in recent disclosures, this has not only benefitted companies like AIG, the auto industry and various US banks, but multiple foreign central banks as they have run into trouble. Nothing has been solved, however, by offering up the productivity of Americans as a sacrificial lamb. Greece is set to be the first domino to fall in the string of European economies at risk. Rather than learning from Greece's terrible example of an over-consuming public sector and drowning private sector, what is more likely from our politicians is an eventual bailout of European investors.

The US has a relatively small exposure to overwhelmed Greek banks, but much larger economies in Europe are set to follow and that will have serious implications for US banks. Greece is technically small enough to bail out. Italy is not. Germany is not. France is not. It is estimated that US banks have over a trillion dollars tied up in at-risk German and French banks. Because the urge to paper over the debt with more credit is so strong, the collapse of the Euro is imminent. Will the Fed be held responsible if the Euro brings the US dollar down with it?

The most disingenuous aspect of the narrative about the European sovereign debt crisis is that entire economies will collapse if more resources are not bilked from productive people around the world. This is untrue. Tough times are coming for the banks, to be sure, but free people always find a way back to prosperity if the politicians leave them alone. Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable. Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks. In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them. Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other. No banker, no politician can stop that by destroying one medium of exchange. People will find or create another medium of exchange.

Unfortunately when politicians try to monopolize currency with legal tender laws, the people find it harder and harder to survive the inflation and taxation to which they are subjected. Bankers should take their dreaded haircut rather than making innocent people pay for their mistakes. The losses should be limited and liquidated, rather than perpetuated and rewarded. This is the only way we can recover.

Government debt is often considered rock solid because it is backed by a government's ability to forcibly extract interest payments out of the public. The public is increasingly unwilling to be bilked to make bankers whole. The riots and the violence in Greece should tell us something about the sustainability of this system.

If we continue to bail out banks and bankers so they can continue to lose money, if we cavalierly put this burden on the taxpayer, it is all too predictable what will happen here.

Monday

TAKING EXECUTIVE ORDERS TOO FAR

These are frustrating times for the President. Having been swept into office with a seemingly strong mandate, he enjoyed a Congress controlled by members of his own party for the first two years of his term. However, midterm elections brought gridlock and a close division of power between the two parties. With a crucial re-election campaign coming up, there is desperation in the president’s desire to "do something" in spite of his severely weakened mandate.

Getting something done is proving to be a monumental task. This may be news to the supposed constitutional scholar who is now our president, but if the political process seems inconvenient to the implementation of his agenda, that is not a flaw in the system. It was designed that way. The drafters of the Constitution intended the default action of government to be inaction. Hopefully, this means actions taken by the government are necessary and proper. If federal laws or executive actions can’t be agreed upon constitutionally- which is to say legally- such laws or actions should be rejected.

The vision of the founders was to set up a government that would remain small and unobtrusive via a system of checks and balances. That it has taken our government so long to get this big speaks well of the original design. The founders also knew the overwhelming nature of governments was to amass power and grow. The Constitution was to serve as the brakes on the freight train of government.

But the Obama administration, like so many administrations in the 20th century, chooses to ignore the Constitution entirely. The increasingly broad use and scope of the Executive Orders is a prime example. Executive Orders are meant to be a way for the president to direct executive agencies on the implementation of congressionally approved legislation. It has become increasingly common for them to be misused in ways that are contradictory to congressional intent, or to bypass Congress altogether in enacting political agendas. The current administration has unabashedly stated that Congress's unwillingness to pass the president's jobs bill means that the president will act unilaterally to enact provisions of it piecemeal through Executive Order. Obama explicitly threatens to bypass Congress, thus aggregating the power to make and enforce laws in the executive. This clearly erodes the principles of separation of powers and checks and balances. It brings the modern presidency dangerously close to an elective dictatorship.

Of course, the most dangerous and costly overstepping of executive authority is going to war without a congressional declaration. Congress has been sadly complicit in this usurpation by ceding much of its war-making authority to the executive because it wants to avoid taking responsibility for major war decisions, but that is part of our job in Congress! If the President cannot present to Congress and the people a convincingly strong case for going to war, then perhaps we should keep the nation at peace, rather than risk our men and women's lives for ill-defined reasons!

This administration certainly was not the first to behave in ways that have defied the Constitution to overstep its bounds. Sadly, previous administrations have set precedents that the current administration is only building upon. It is time for Congress to reassert itself and its constitutional role so that future administrations cannot continue on this dangerous path.

Tuesday

LEAVING IRAQ?

It is not too often I am pleased by the foreign policy announcements from this administration, but last week's announcement that the war in Iraq was in its final stage and all the troops may be home for Christmas did sound promising. I have long said that we should simply declare victory and come home. It should not have taken us nearly a decade to do so, and it was supposed to be a priority for the new administration. Instead, it will be one of the last things done before the critical re-election campaign gets into full swing. Better late than never, but, examining the fine print, is there really much here to get excited about? Are all of our men and women really coming home, and is Iraq now to regain its sovereignty? And in this time of economic crisis, are we going to stop hemorrhaging money in Iraq? Sadly, it doesn't look that way.

First and foremost, any form of withdrawal that is happening is not simply because the administration realized it was the right thing to do. This is not the fulfillment of a campaign promise, or because suddenly the training of their police and military is complete and Iraq is now safe and secure, but because of disagreements with the new government over a Status of Forces Agreement (SOFA). The current agreement was set up by the previous administration to expire at the end of 2011. Apparently the Iraqis refused to allow continued immunity from prosecution for our forces for any crimes our soldiers might commit on Iraqi soil. Can you imagine having foreign soldiers here, with immunity from our laws and Constitution, with access to your neighborhood?

Some 39,000 American troops will supposedly be headed home by the end of the year. However, the US embassy in Iraq, which is the largest and most expensive in the world, is not being abandoned. Upwards of 17,000 military personnel and private security contractors will remain in Iraq to guard diplomatic personnel, continue training Iraqi forces, maintain "situational awareness" and other functions. This is still a significant American footprint in the country. And considering that a private security contractor costs the US taxpayer about three times as much as a soldier, we're not going to see any real cost savings. Sadly, these contractors are covered under diplomatic immunity, meaning the Iraqi people will not get the accountability that they were hoping for.

While I applaud the spirit of this announcement - since all our troops should come home from overseas - I have strong reservations about any actual improvements in the situation in Iraq, since plans are already being made to increase the number of troops in surrounding regions. What we really need is a new foreign policy and there is no indication that that is what we have gotten. On the contrary, the administration fully intends to keep troops in Iraq, indefinitely, under a new agreement, while the Iraqis are doing their best to assert their sovereignty and kick us out. Neither are we going to be saving any significant amount of money. My greatest fear, however, is that this troop withdrawal from Iraq will simply pave the way for more endless, wasteful, needless wars.