Thursday, July 11, 2013

Current Events - July 11, 2013


Washington, D.C. and Wall Street doing just fine, thank you.

The entire calamity that was the '07 ' 08 financial debacle can be directly attributable to machinations of Wall Streeters and Washington DC politicians.  The packaging of mortgages and the continual dropping of standards to originate those mortgages were the play things of those brokerage houses and certain politicians.

These two areas, these two groups of people, have now become the beneficiaries of the crisis they perpetrated. 

Washington DC

The area is thriving in construction, home values, and salaries.  And not just Washington DC proper, but any community within a commute or connected to the federal governmental money spilling machine.

Wall Street

First and foremost, no one has been prosecuted for malfeasance or securities violations regarding the financial meltdown in 07 and 08.  Some say this lack of prosecutorial energy and diligence ensures another debacle.

Trading houses go months without a losing day. Goldman, JP Morgan seem to have the magic touch. 

Of note is the power in the hands of the Federal Reserve. Notice that the working arm of the Fed is the New York Federal Reserve and understand who is on that board and how they get there.  Now understand  the source of confidence that some of these trading houses possess.  If a Federal Reserve decision is in the wind, I'm pretty certain that my phone won't ring.  They expect the call. 

Andrew Jackson was correct in his cautionaries regarding a "national bank". Stating the case against a national bank, Jackson said we should....

"...take a stand against all new grants of monopolies and exclusive privileges, against any prostitution of our Government to the advancement of the few at the expense of the many... "

The stock market is at or near all time highs.  Money is flowing at the discretion of the Federal Reserve and under the guise that loose money somehow creates jobs.  Never mind that it has had only a modicum of impact in that area, and disregard that there is no questioning of the economic theories under which this program is implemented.  The money flows, the Federal Reserve decides, and the secretive nature of the decision making is lax.  (Stock market seems to rally sharply before Bernanke speaks of continued loosening.)

It appears there are two sections of the country.  Draw a big circle around the New York City and Washington, D.C. corridors and you have one. The area outside is the other.

Jobless numbers and the work force participation numbers flounder.  The Fed continues to use a paint brush to try and fix a plumbing problem.  They are certain this is the way.

This certainty creates a utopia for some, a windfall.  Wall Street and Washington ask, "So what's the problem? The worse the job numbers and the more tepid the GDP, the better we do."  I wonder for what they are truly rooting. Most certainly they are always near their phone.


http://www.americanthinker.com/blog/2013/07/washington_dc_and_wall_street_doing_just_fine_thank_you.html#ixzz2YkhhXXME

Karl Rove: The ObamaCare Spin Machine Revs Up

Team Obama works hard to limit the political damage of the health law in the 2014 elections.

There's been a recent flurry of activities attempting to boost the Affordable Care Act. In mid-June, for example, President Obama's "Organizing for Action" group reportedly spent seven figures on TV ads (in California, Florida and Texas) claiming, "Americans are already seeing the benefits" of health-care reform.
Also in June, the administration and an allied nonprofit, Enroll America, described how hundreds of thousands of community organizers will sign up seven million uninsured people for health coverage, once registration for subsidized insurance starts Oct. 1.

Then on July 2, the administration dropped a bombshell, delaying the employer mandate for a year.
Even Democrats were taken aback. Iowa Sen. Tom Harkin, one of the law's authors, was quoted in the New York Times saying, "This was the law. How can they change the law?" But the rule of law won't stop this White House from trying to reduce the damage from ObamaCare until after the 2014 midterm elections. 

Political considerations have frequently dictated the administration's actions on ObamaCare. For example, a week after Democrats were shellacked in the 2010 midterm elections, Health and Human Services Secretary Kathleen Sebelius boosted discretionary payments to insurance companies by $8.3 billion over three years to mitigate the impact of cuts in the popular Medicare Advantage program until after the 2012 election.

Administration figures and supporters have long said that ObamaCare would become more popular as time went by. It hasn't. A June 2 NBC News/Wall Street Journal poll found 37% thought the health-care plan was a good idea while 49% thought it a bad idea. On May 10, 2010, about two months after ObamaCare passed, it was 38% good idea, 44% bad.

Other surveys show a similar pattern. A June 9 Kaiser Family Foundation Health Tracking Poll found that only 35% of Americans had a favorable impression of the health law, while 43% had an unfavorable opinion. On June 22, 2010, four months after the legislation passed, the Kaiser poll reported 48% favorable, 41% unfavorable. These poll numbers have created fear in the Obama White House about the health law's impact on Democratic candidates next year. 

Meanwhile, the temporary reprieve from the employer mandate will not stop many businesses from preparing their people for when the company stops providing insurance. They'll also continue limiting more part-time employees to fewer than 30 hours a week, in order to avoid being snared by this provision in the law. 

To offset this development, the administration desperately wants to sign up as many people for health policies as possible, hoping the newly insured will be grateful voters on Nov. 4, 2014. Also, the Congressional Budget Office estimates for ObamaCare outlays assume a disproportionate share of the early sign-ups are young people. They will pay higher insurance rates to subsidize coverage for older uninsured Americans. Organizing for America and Enroll America are focused on workers under 35.

Political problems still loom. Though ObamaCare provides generous subsidies to the uninsured, they still have to pay something each month. How many uninsured believe their insurance will be free? An analysis published earlier this year in Contingencies, the American Academy of Actuaries magazine, concluded that Americans earning as little as $25,000 can expect to pay higher premiums under ObamaCare—even with the law's subsidies.

The administration thinks it can spin its way out of these problems. Take the Department of Health and Human Services inquiry on Tuesday to media buyers about television ad rates in the fourth quarter of this year for a possible ad blitz urging people to sign up. The list of 21 media markets seems suspiciously political. Six of the 10 largest—New York, Los Angeles, Chicago, Boston, San Francisco and Washington—are missing. 

But five media markets (Austin, Dallas, Harlingen, Houston and San Antonio) are in Texas, a red state targeted by a Democratic effort called "Turn Texas Blue" led by Obama campaign operatives. Charlotte and New Orleans also are on the list, both in states where vulnerable Democratic senators are defending ObamaCare. With the exception of Indianapolis and St. Louis, the other markets are in states with a Republican governor's seat up for grabs—Atlanta, Cleveland, Detroit, Jacksonville, Miami, Nashville, Oklahoma City, Orlando, Philadelphia, Phoenix, Tampa and Tucson.

Nevertheless ads are less important than the quality of the product they tout—and ObamaCare is a lemon.
= There's little the president can do to spin his way out of that.

http://online.wsj.com/article/SB10001424127887324425204578597713261721002.html?mod=rss_opinion_main

GOP Congressman Jabs Pelosi, Democrats on Obamacare Promises: You’ve Been ‘Pumping Sunshine’ for Years and NOW You Tell Us It’s a Mess?

Congressman Peter Roskam (R-Ill.) during a Wednesday House Ways and Means Committee hearing on the implementation of President Barack Obama’s Affordable Care Act mocked top Democrats for finally admitting the bill has major defects.

Rep. Roskam began by invoking California Congresswoman Nancy Pelosi’s infamous “we have to pass the [health care] bill so that you can find out what’s in it” line.

“Wow, she just doesn’t disappoint,” Roskam scoffed.

He continued, taking aim at the White House for waiting until just before Independence Day to admit it had delayed the so-called “employer mandate.”

This “administration for years has been pumping sunshine,” he said. “For years the administration, when asked ‘how are you doing this, exactly? How is this great feat coming to fruition?’ and this committee … has been told, ‘it’s fine. It’s great. We got it under control. In fact, we got a wonderful plan for your life and it’s going to be absolutely terrific.’”

“And now what happens?” he continued, “the administration, on a blog post, essentially whispers, ‘it’s not working. Oops.’”

http://www.theblaze.com/stories/2013/07/11/gop-congressman-jabs-pelosi-democrats-on-obamacare-promises-youve-been-pumping-sunshine-for-years-and-now-you-tell-us-its-a-mess/

18 and Counting: Plum Ambassador Posts Go to Obama Campaign Bundlers


President Obama on Tuesday nominated two major campaign bundlers to two of the most prized ambassadorships available anywhere – London and Rome – part of a pattern that has seen him reward at least 18 top fundraisers with plum diplomatic positions since 2009.

The White House said the post of ambassador to the United Kingdom will go, subject to confirmation, to Matthew Barzun, an Internet pioneer and investor who served as the Obama campaign finance chairman in 2008, as ambassador to Sweden from 2009-2011, and then again as finance chairman for the president’s 2012 campaign.

The ambassadorship to Italy will go to John R. Phillips, a Washington lawyer who chairs the president’s commission that selects candidates to be White House fellows. Phillips is the husband of Linda Douglass, a former network journalist who served as communications director for the Obama White House’s Office of Health Reform.

According to the non-partisan Center for Responsive Politics, Barzun bundled at least $500,000 for the Obama campaign in 2008 and at least $500,000 again in 2012; Phillips bundled at least $500,000 for Obama in 2012 and between $200,000 and $500,000 in 2008.

Barzun is in line to take up the post vacated by Louis Susman, a retired Chicago investment banker who bundled between $200,000 and $500,000 for Obama in 2008, before being nominated as ambassador to the U.K. the following May.

Barzun and Phillips are the latest in a string of Obama bundlers to be nominated to ambassadorial posts.
Already serving are the ambassadors to Belize (bundled $100,000-$200,000 for the Obama campaign in 2008), Canada ($50,000-$100,000), Czech Republic ($200,000-$500,000), Finland ($500,000+), France ($500,000+), Japan ($500,000+) and Norway ($200,000-$500,000).

Joining them are the current U.S. ambassadors to the European Union in Brussels, and to the Association of South East Asian Nations (ASEAN), based in Jakarta, both of whom bundled at least $500,000 each for the Obama campaign in 2008.

In addition, Obama has nominated another seven campaign bundlers to ambassador positions, in some cases replacing yet other bundlers who got the posts during his first term (including one who drew criticism during Obama’s re-election campaign with comments about anti-Semitism and Israel.)

Awaiting confirmation are Obama’s nominees as ambassador to Berlin (John Emerson, $100,000-$200,000), Brussels (Denise Bauer, $200,000- $500,000), Madrid (James Costos, $500,000+), Santo Domingo (James "Wally" Brewster, $500,000+), Singapore (Kirk Wagar, $500,000+), Vienna (Alexa Wesner, $200,000-$500,000) and the U.N. Human Rights Council in Geneva (Keith Harper, $500,000+).
Finally, Obama has nominated as ambassador to Denmark Rufus Gifford – not a campaign bundler, but his 2012 campaign finance director.

According to the American Foreign Service Association (AFSA), giving ambassadorships to political appointees has been a common practice for presidents of both parties in recent decades.

AFSA says 187 (67.8 percent) of Obama’s ambassadorial nominations to date have been career diplomats, compared to 89 (32.2 percent) who have been political appointees.

AFSA figures for previous presidents are: George W. Bush – 30 percent political appointees; Clinton – 27.82 percent; George H.W. Bush – 31.30 percent; and Carter – 26.73 percent. It did not have figures available for President Reagan.

Political appointees tend most often to get coveted Western European and Caribbean stations, where 72 percent of all ambassador posts since 1960 have gone to them.

By contrast, only 14 percent of posts in Africa and the Middle East have gone to political appointees since 1960, and none to posts in Central Asia.

It’s a situation AFSA opposes.

“The United States is alone in this practice; no other major democracy routinely appoints non-diplomats to serve as envoys to other countries,” it says in a statement on its website.

“The appointment of non-career individuals, however accomplished in their own field, to lead America’s important diplomatic missions abroad should be exceptional and circumscribed, not the routine practice it has become over the last three decades.”

The Foreign Service Act of 1980 states that “positions as chief of mission should normally be accorded to career members of the Service.”

The legislation adds that ambassadorial nominees “should possess clearly demonstrated competence to perform the duties of a chief of mission, including, to a maximum extent practicable, useful knowledge of the principal language or dialect of the country in which the individual is to serve, and knowledge and understanding of the history, the culture, the economic and political institutions, and the interests of that country and its people.”

And, it says, “Contributions to political campaigns should not be a factor in the appointment of an individual as a chief of mission.”

http://www.cnsnews.com/news/article/18-and-counting-plum-ambassador-posts-go-obama-campaign-bundlers#sthash.ahsGljsR.dpuf

Lois Lerner's big mouth

Lois Lerner is a nasty piece of work, and one aspect of her arrogance could well be her undoing. She enjoyed wielding her power so much that she boasted about it, and in doing so in a 2011 interview with Business Week, she conceded a point that could be used to prove criminal culpability. Patrick Frey, who writes Patterico's Pontifications, uncovered the incriminating crowing:
A reader sends a very interesting tidbit buried in a November 17, 2011 Businessweek.com article about the IRS and not-for-profit universities. The article is about the IRS making inquiries into "whether schools improperly claimed tax-exempt status for taxable businesses." At the end of the article is this fascinating quote:
Lois Lerner, the IRS's director of tax-exempt organizations who is overseeing the investigation, says many schools are rethinking how and what they report to the government. Receiving a thick questionnaire from the IRS, she says, is a "behavior changer."

Frey provides a timeline, noting the bragging took place months after the initiation of the targeting of conservatives and tea parties. Ed Morrissey explains the implication in the Fiscal Times:

The targeting of conservative groups by the tax-exempt unit Lerner ran also used the "thick questionnaire" tactic, which Lerner brags is a form of intimidation.  An entertaining timeline of the IRS targeting scandal compiled by Freedom Works, which supports and trains Tea Party activists and groups, shows Lerner found out about the targeting by June 27, 2011 at the latest, and had initiated an audit of the office and its "be on the lookout" (BOLO) list used for the targeting. 
That resulted in a broader BOLO being put into use, and five months later, Lerner is bragging about the "behavior changer" effect of IRS demands for extensive information. Targeting continued well into 2013, and most of the groups that applied for tax-exempt status dropped those requests, or never received approval.

The acknowledgement that IRS questionnaires change behavior could indicate conscious intent in the harassment of tea party and conservative organizations seeking tax exempt status.  That paves the way for a potential criminal conviction.  Lerner is currently demanding immunity in order to testify, having invoked the Fifth Amendment. Her bargaining leverage has just collapsed. If Lerner finds herself facing potential criminal prosecution, her tongue may loosen on its own.  There are much bigger fish than this unpleasant woman, and she strikes me as the kind who would find life in the slammer unacceptable. She'll be looking out for number one.

John Hinderaker of Powerline notes:

...the salient point is the bullying attitude: never mind the merits, a "thick questionnaire from the IRS is a behavior changer." And that was in a magazine interview! It makes one wonder what else Lerner may have said in unguarded moments.

Exactly. Let the crowd-sourcing of Lerner's braggadocio begin!

Big Government Implodes

ObamaCare's failures are not the only sign of a great public crack-up.

Mark July 3, 2013, as the day Big Government finally imploded. 

July 3 was the quiet afternoon that a deputy assistant Treasury secretary for tax policy announced in a blog post that the Affordable Care Act's employer mandate would be delayed one year. Something about the "complexity of the requirements." The Fourth's fireworks couldn't hold a candle to the sound of the U.S. government finally hitting the wall.

Since at least 1789, America's conservatives and liberals have argued about the proper role of government. Home library shelves across the land splinter and creak beneath the weight of books arguing the case for individual liberty or for government-led social justice. World Wrestling smackdowns are nothing compared with Hayek vs. Rawls.

Maybe we have been listening to the wrong experts. Philosophers and pundits aren't going to tell us anything new about government. The one-year rollover of ObamaCare because of its "complexity" suggests it's time to call in the physicists, the people who study black holes and death stars. That's what the federal government looks like after expanding ever outward for the past 224 years.

Even if you are a liberal and support the goals of the Affordable Care Act, there has to be an emerging sense that maybe the law's theorists missed a signal from life outside the castle walls. While they troweled brick after brick into a 2,000-page law, the rest of the world was reshaping itself into smaller, more nimble units whose defining metaphor is the 140-character Twitter message. 

Laughably, Barack Obama tried this week to align himself with the new age in a speech calling yet again for "smarter" government. It requires whatever lies on the far side of chutzpah to say this after passing a 1930s-style law that is both incomprehensible and simply won't work. ObamaCare is turning into pure gravity. Nothing moves. 

On July 5, the administration announced into the holiday void that because of "operational barriers" to IRS oversight, individuals would be allowed to self-report their income to qualify for the law's subsidies.
If the ObamaCare meltdown were a one-off, the system could dismiss it as a legislative misfire and move on, as always. But ObamaCare's problems are not unique. Important parts of the federal government are breaking down almost simultaneously. 

The National Security Agency has conservative philosophers upset that its surveillance program is ushering in Big Brother. What's more concretely frightening is that a dweeb like Edward Snowden could download the content of the NSA's computers onto a thumb drive and walk out of the world's "most secretive" agency. Here's the short answer: The NSA has 40,000 employees. (Some say it's as high as 55,000, but it's a secret.)

Echoing that, when the IRS's audits of conservative groups emerged, the agency managers' defense was that the IRS is too big for anyone to know what its agents are doing. Thus both the NSA and IRS are too big to avoid endangering the public. 

It is hard to imagine a more apolitical federal function than the nation's weather satellites. The ones we have—to predict hurricanes and such—are about to wear out and need to be replaced. Can't do it. The National Oceanic and Atmospheric Administration, NASA and the Pentagon have been trying to replace the old weather satellites, since 1994. The Government Accountability Office says "we are looking at potentially a 17-month gap" in this crucial weather data. NOAA has good scientists whose bad luck is they work for a collapsing constellation of bureaucracies. 

The State Department missed signs of the Arab Spring's insurrections in late 2010 despite warnings from outside groups. Egypt is in flames, in part, because State for years has been mainly a massive, drifting bureaucracy. Little wonder Hillary Clinton spent four years in flight from the place. 

Even some conservatives have given up and boarded the death star. The Senate immigration bill throws $46 billion at the Department of Homeland Security to implement a "border surge" strategy that has no chance of achieving its goals. Securing the border is the conservatives' Solyndra. 

To call the U.S. federal government a black hole is a disservice to black holes, which have a neutral majesty. Excepting the military's fighting units, the federal government has become a giant slug, like Jabba the Hutt, inert but dangerous. Like Jabba, the government increasingly survives by issuing authoritarian decrees from this or that agency. Barack Obama, essentially a publicist for Jabba's world of federal fat, euphemized this mess Monday as the American people's "democracy." 

Thomas Jefferson, who must be rolling in his grave, said the way to ensure good government was to divide it among the many. Some states and cities are indeed reworking their functions in efficient, innovative ways. But Washington is oblivious to life beyond the Beltway. 

Those indispensable but dying weather satellites are a metaphor for the U.S. now. Whether ObamaCare or the border fence, Washington is winding down into a black hole of its own making. The debate's over. Liberalism will be swept into this vortex, too.

http://online.wsj.com/article/SB10001424127887323368704578596140112431854.html?mod=WSJ_Opinion_LEADTop

Taxpayer-funded research lets people experience what it feels like to be a cow

Would experiencing a day in the life of a cow make you less likely to eat meat? How would chopping down a tree affect your paper usage? These are questions that the National Science Foundation awarded universities $748,000 dollars to use virtual reality to answer.

“If somebody becomes an animal, do they gain empathy for that animal and think about its plight?” asked Jeremy Bailenson, director of Stanford University’s Virtual Human Interaction Lab. “In this case, empathy toward the animal also coincides with an environmental benefit, which is that [not eating] animals consumes less energy.”

Bailenson is heading research at Stanford in which participants don virtual reality helmets and walk on their hands and feet. They are then able to see themselves as a cow in a virtual mirror. They experience what a cow does on its way to being slaughtered and then record what they eat for the next week to see if being a cow reduced meat consumption.

This is just one experiment Bailenson is conducting, but all his experiments are tailored to finding new ways to encourage environmental conservation.

E&E News reports: “Volunteers also have virtually chopped down a tree, a study aimed at examining attitudes toward paper use. Others took a virtual reality shower while eating lumps of coal — literally consuming it — to gain insight into how much was needed to heat the water.”

Some researchers argue that virtual reality can alter people’s behavior and change their attitudes with respect to environmental issues like global warming.

“It’s just a much more compelling way of getting people to understand the effects of their behavior now on the future,” Tim Herron of the Decision Theatre lab at the University of British Columbia. “It’s about visualizing the data for people. Once people can see it, it’s amazing how much it changes things. People begin to really understand the necessity to make some changes now to prevent these sort of things.”

The results of the virtual cow experiment are still inconclusive, reports E&E News, but comments from some study participants indicate that they now empathize with cows.

“Once I got used to it I began to feel like I was the cow,” wrote one participant. “I truly felt like I was going to the slaughter house towards the end and I felt sad that I (as a cow) was going to die. That last prod felt really sad.”

According to Bailenson, he has seen some students become more environmentally conscious. Students who had gone through the virtual reality lab of cutting down trees used 20 percent less paper when cleaning up a pre-staged mess than those who had simply watched a video of a tree being cut down.
Bailenson also noted that he gets emails months after people go through the experiment saying they can’t walk through the toilet paper aisle of the grocery store without thinking of a falling tree.

Most expensive bacon ever? $10,000 per animal

State demands penalty for stock that is 'wrong breed'

This could be the most expensive bacon ever: Pigs that have a price of $10,000 on their heads.
Problem is, the money is not going to the farmer; it’s being demanded from the farmer. By the state. Because they’re the wrong breed of pig.

According to a report from the Farm-to-Consumer Legal Defense Fund, which advocates for policies that allow producers to deliver food products directly to Americans, the Michigan Department of Natural Resources alleges that there are 70 “illegal pigs” being raised by farmer Mark Baker.

Authorities say the animals, each and every one, are a violation of the state’s invasive species order. The state is demanding a fine of up to $10,000 per violation, or $700,000 for Baker’s actions in raising for sale 70 pigs “the state deems the wrong breed.”

It was just over a year ago when Baker sued the state over that invasive species order. He had raised the pigs for years, yet suddenly the state told him they were illegal.

The Defense Fund said supporters of food rights from around the country will gather at the Missaukee County Courthouse in Lake City, Mich., at 2 p.m. on July 12 for a hearing in the case.

The Defense Fund is providing Baker’s counsel.

“The ISO supposedly was issued so the state could get rid of feral pigs; but the way DNR is interpreting the order, it could be applied to any domestically raised hog, threatening the livelihood of small, family farming operations,” the group explained.

The state agency had announced it would decide whether a pig was allowed or not based on its physical characteristics.

The new rules, with the force of law, took effect April 1, 2012, and Baker has been fighting ever since.

“Because of the ISO, I have not been able to process or sell any pork in Michigan since April 2012 or sell the live pigs. This threatens the viability of my farm, my income and the health and well-being of my family,” Baker said. “This order denies consumers access to the foods of their choice and violates property rights and the right to make a living. Farmers and other hog owners in Michigan must either get rid of their now ‘prohibited’ property or become felons.”

Details of the ongoing battle are online at Bakers Green Acres.

WND previously reported the small pork producers were worried their fight with “Big Pork” in the state would not go well.

They warned the bureaucrats could simply by describing a type of pig outlaw it, costing the farmers their livelihoods.

At the time, Ed Golden, a spokesman for the state agency, said the state was trying to work with farmers who raised the now-banned animals to bring them into compliance with the new dictate.

Pete Kennedy of the Farm-to-Consumer Legal Defense Fund called the move a “brazen power grab” by the state.

“The Michigan Department of Natural Resources is using the state Invasive Species Act to expand its jurisdiction beyond hunting and fishing to farming operations,” he said.

Kennedy said the DNR has issued its own order to allow agents to “seize and destroy heritage breeds of pigs that farmers are raising; and DNR will not compensate farmers whose pigs are destroyed. In the logic of the department, ‘Indemnification in (Michigan) statute is for livestock and invasive species are not livestock, and are therefore, not eligible for indemnification.’”

Kennedy said the Michigan Pork Producers Association “wants all pigs to be raised in confinement facilities, and the best way to achieve that is to make it illegal to raise certain swine, especially those offering alternatives to the white pork raised in confinement.’”

The state has listed a number of characteristics, including underbelly fur, tail structure, ear structure and skeletal appearance, that would define an animal as banned.
 
“Yet these are the very pigs that farmers and ranchers in Michigan have been raising for decades. The state doesn’t seem to care about this, and there are indications that this ISO may have been nudged into position by the conventional pork industry as a tactic to wipe out its competition of local, specialty ranching conducted by small families and dedicated farmers who don’t work for the big pork corporations.”

http://www.wnd.com/2013/07/most-expensive-bacon-ever-10000-per-animal/ 

The $100,000 Obamaphone for Millionaires

The FCC spends billions subsidizing high-end golf and ski developments.

The Obamaphone lady is moving up in America: She isn’t a rabble-rouser in Cleveland anymore, but a real-estate developer in Maui, a ski-resort owner in Breckenridge, and a dedicated golfer in Scottsdale — and, more important, the telephone companies that serve them. And she isn’t costing taxpayers a couple hundred bucks a year in subsidies, but more than $100,000 per household.

That’s the finding of a new study released by economists Thomas Hazlett of George Mason University and Scott Wallsten of the Technology Policy Institute, who have turned their attention to the aptly named “high-cost fund” administered by the Federal Communications Commission and supported by the 16 percent universal-service tax levied on everybody from landline users to voice-over-IP customers. The fund has spent some $64 billion on carrier subsidies since 1998, and while there is some dispute about how many additional households have phone connections thanks to those outlays, the highest estimates run around 600,000, meaning a cost of more than $100,000 per household.

The program was originally developed to help extend basic communications to poor people in remote rural areas without telephone service. But the United States ran out of poor people in remote rural areas without telephone service a good long while ago. The administrators of federal programs fear nothing so much as looking for a job in the private sector, so the program found new products to subsidize, such as broadband internet, and new places to subsidize them: No more dirt farms in the sticks, but high-end developments — “mansion-lined gated golf communities” in the words of Dave Herman of the Alliance for Generational Equity, which sponsored the study. 

According to Hazlett, the $4.5 billion-a-year program has connected at most 0.5 percent of U.S. households to telephone service.

Those recent beneficiaries in Maui and Scottsdale do not include very many poor people. But the 16 percent tax that supports their subsidies is paid by a great many poor people, especially young immigrants who spend a disproportionate share of their income on international long-distance calls, “a very high tax on low-income people,” Hazlett says.

The problem is a telecom-subsidy model that relies on a cost-plus model of pricing, which gives rural telephone companies an incentive to keep their costs as high as possible. The result is what the result always is when private-sector rapacity encounters public-sector incompetence. When critics began circulating those mind-blowing per-line cost estimates a few years back, the FCC responded with a series of “reforms” that locked in the worst elements of the program.

Confronted with evidence that the program was in some cases costing as much as $23,000 per line every year, the FCC capped subsidies at $3,000 per line per year — still far in excess of what a mobile-phone plan or satellite-based internet-and-telephone package would cost. (And those are just the subsidies — consumers pay out-of-pocket on top of those.) Spending on the program had been in decline, expected to go down to $4 billion in 2012. So the FCC pulled a classic bureaucratic move: It decided that “demand” for the subsidies would be set at a minimum of $4.5 billion a year, and forbade the program’s administers to estimate its needs at any less than that. As Wallsten put it, the program’s new budget is a floor, not a ceiling. So while the FCC is phasing in restrictions on the per-line subsidies, the total outlays under the program are locked in at their current levels — or higher. Average payments will be reduced, but total spending will stay the same or rise, meaning that the FCC will need to find more targets to subsidize.

“You can call it corporate welfare, sure,” Hazlett says, “But it’s a small-business plan, basically. The small, rural companies are the ones that really cash in. There’s more than a thousand of them, and they are literally developed around the idea of federal subsidies for high-cost performance. They wouldn’t exist without the subsidies.”

The authors said they were “stunned” that the Obamaphone lady became such a national scandal when “wheelbarrows full of dole” were being directed at grasping telecoms and their affluent customers. If only people knew where the money is really being wasted.

http://www.nationalreview.com/article/353104/100000-obamaphone-millionaires-kevin-d-williamso


Commerce Dept. Spent $2.7 Million to Fix Nonexistent Computer Virus 



The Commerce Department destroyed more than $170,000 worth of working computers, televisions and cameras, all in response to a cyber threat that “did not exist.”

The Economic Development Administration (EDA), which promotes innovation and competitiveness within the Commerce Department, feared its IT network was infected with a widespread virus, and ultimately spent more than $2.7 million to fix a problem that was nothing more than “common malware.”

According to an inspector general report released on June 26, the EDA based its decision to destroy its computers on “inaccurate information.”

In December 2011, the Department of Homeland Security (DHS) first notified the EDA that it had a “potential” malware infection within one of its IT systems.

Believing the problem was widespread, the EDA “decided to isolate its IT systems from the [Herbert C. Hoover Building] HCHB network and destroy IT components to ensure that a potential infection could not persist,” the report states.

“However, OIG found neither evidence of a widespread malware infection nor support for EDA’s decision to isolate its IT systems from the HCHB network.”

Worried it was being hacked by foreign governments, the EDA had hired a cybersecurity contractor to look into the initial threat in January 2012.  Within two weeks, the contractor found no evidence of a malware infection, but continued an investigation until May.

There was never any indication the network was being hacked, and only six components were found to have malware infections that “could have been remediated using typical containment measures.”

The EDA’s Chief Information Officer, however, “concluded that the risk, or potential risk, of extremely persistent malware and nation-state activity (which did not exist) was great enough to necessitate the physical destruction of all of EDA’s IT components,” the IG said.

“EDA’s management agreed with this risk assessment and EDA initially destroyed more than $170,000 worth of its IT components, including desktops, printers, TVs, cameras, computer mice, and keyboards,” they said.

Not only did the agency have $170,500 worth of working equipment destroyed, they paid $4,300 to have it done.

The ordeal ended up costing $2,747,000—which is over half of EDA’s budget for the year—including more than $1 million for “temporary infrastructure.”

In fact, the EDA wanted to destroy all of its computers and IT equipment, valued at over $3 million, but ran out of funds to do so.

“By August 1, 2012,” the report states, “EDA had exhausted funds for this effort and therefore halted the destruction of its remaining IT components.”

“EDA intended to resume this activity once funds were available,” it said.  “However, the destruction of IT components was clearly unnecessary because only common malware was present on EDA’s IT systems.”

 http://www.cnsnews.com/news/article/commerce-dept-spent-27-million-fix-nonexistent-computer-virus#sthash.zQ15PO4v.dpuf


Taxpayers Billed $94K to Fly Scientists to Cyber Workshop in Vietnam 



A team of U.S. scientists will spend more than $94,000 of federal taxpayer money on travel costs when they attend a cyberinfrastructure workshop in Vietnam later this year instead of using existing technology to hold the conference online.

Cyberinfrastructure is the all-encompassing term given to databases, microchips, and the larger Internet universe that allows individuals to share data across multiple platforms worldwide.

The one-year $94,432 grant from the National Science Foundation (NSF) and its Division of Advanced CyberInfrastructure was awarded on March 22, 2013.

According to the grant abstract, "the NSF funds will support travel for U.S. scientists and graduate students working with collaborators in the countries of the LMR” (Lower Mekong Region, which includes Cambodia, Laos, Thailand, Vietnam and Myanmar, formerly known as Burma) “and/or collaborating with counterparts in the region, including those from across many NSF divisions."

The workshop will focus on “forming and enhancing” opportunities for collaboration between scientists in the U.S. and their counterparts in Southeast Asia, developing and maintaining cyberinfrastructure in the region, and establishing rules for research practices there as well.

The overseas conference  is being organized by individuals from Indiana University, the PRAGMA project, the Network Startup Research Center (NSRC) and the National Center for Atmospheric Research (NCAR).

Principal investigator James Williams of Indiana University said in the grant abstract that the workshop's broader impacts will "include increasing participation by researchers from countries of the LMR in international science and engineering projects."

Neither Williams nor a spokeswoman for the NSF responded to questions posed by CNSNews.com.
The work of these scientists will be in addition to a larger, multi-million-dollar initiative by the U.S. State Department.. The goal of that initiative is to “enhance cooperation in the areas of environment, health, education, and infrastructure development"  between the United States and countries in the Mekong River region, including “a web-based ‘Virtual Secretariat’ to enhance coordination and planning.”

The Lower Mekong Initiative (LMI) was launched after a July 23, 2009 meeting between then-U.S. Secretary of State Hillary Clinton and the Foreign Ministers of Cambodia, Laos, Thailand and Vietnam in Thailand. Myanmar joined the initiative in July 2012.

A July 2011 press release on the State Department website announced that LMI received $221.25 million in funding in 2011.

http://www.cnsnews.com/news/article/taxpayers-billed-94k-fly-scientists-cyber-workshop-vietnam#sthash.iixwG4Dq.dpuf

This Year's Duke Lacrosse Case

 By Ann Coulter
This week, instead of attacking a Hispanic senator, Marco Rubio, I will defend a Hispanic citizen, George Zimmerman, on trial for the murder of Trayvon Martin. (Zimmerman would make a better senator.)
It's becoming painfully obvious why no charges were brought against Zimmerman in this case -- until Al Sharpton got involved. All the eyewitness accounts, testimony, ballistics and forensics keep backing up Zimmerman. We should send a big, fat bill for the whole thing to Sharpton, courtesy of MSNBC.

With the prosecution's witnesses making the defense's case, the inquisitors' last stand is to claim that, if the races were reversed, the black guy would have been instantly charged with murder. As explained in The New York Times:

"Had Mr. Martin shot and killed Mr. Zimmerman under similar circumstances, black leaders say, the case would have barreled down a different path: Mr. Martin would have been quickly arrested by the Sanford Police Department and charged in the killing, without the benefit of the doubt." (Also, CNN could have dropped the "white" and referred to Zimmerman exclusively as "Hispanic.")

The people who say this are counting on the rest of us being too polite to mention that it is nearly impossible to imagine such a case in a world where half of all murders and a majority of robberies are committed by blacks. To reverse the races with the same set of facts, first, we're going to need a gated, mixed-race community, similar to the Retreat at Twin Lakes, that has recently experienced a rash of robberies by white guys. The only way to do that is to enter "The Twilight Zone."

There were at least eight burglaries in the 14 months before Zimmerman's encounter with Martin. Numerous media accounts admit that "most" of these were committed by black males. I'm waiting to hear about a single crime at Twin Lakes that was not committed by a black male.


Just six months before Zimmerman's encounter with Martin, two men had broken into the home of a neighbor, Olivia Bertalan, while she was alone with her infant son. She had just enough time to call 911 before running upstairs and locking herself in a room. The burglars knew she was home, but proceeded to rob the place anyway, even trying to enter the locked room where she held her crying child.

Bertalan had seen the burglars just before they broke into her house -- one at the front door and one at the back. They were young black males. They lived in the Retreat by Twin Lakes.

In another case, a black teenager strode up to Zimmerman's house and, in broad daylight, stole a bicycle off the front porch. The bike was never recovered.

Weeks before Zimmerman saw Martin, he witnessed another young black male peering into the window of a neighbor's house. He called the cops, but by the time they arrived, the suspect was gone.

A few days later, another house was burglarized. The thieves made off with jewelry and a new laptop. Roofers working across the street had seen two black teenagers near the house at the time of the robbery. When they spotted one of the teens the next day, they called the police.

This time, the roofers followed the suspect so he wouldn't get away. The cops arrived and found the stolen laptop in his backpack. This was the same black teenager Zimmerman had seen looking in a neighbor's window.

The only reason it's hard to imagine the Zimmerman case with the races reversed is that it's hard to imagine a white teenager living in a mixed-race, middle-class community, mugging a black homeowner. This is not a problem of society's reactions, but of the facts.

There is, however, at least one case of a black homeowner fatally shooting a white troublemaker. He was not charged with murder.

In 2006, the ironically named John White was sound asleep at his nice Long Island home when his teenage son woke him to say there was a mob of white kids shouting epithets in front of the house. The family was in no imminent danger. They could have called 911 and remained safely behind locked doors.

But White grabbed a loaded Beretta and headed out to the end of the driveway to confront the mob. A scuffle ensued and White ended up shooting one of the kids in the face, killing him.

White was charged and convicted only of illegal weapons possession -- this was New York, after all -- and involuntary manslaughter. He was sentenced to 20 months-to-four years in prison, but after serving five months was pardoned by Gov. David Paterson.

With all due compassion for the kid who was killed, the public was overwhelmingly on the father's side -- a fact still evident in Internet postings about the case. The kids were punks menacing a law-abiding homeowner. Even the prosecutor complained only that Paterson hadn't called the victim's family first. The local NAACP had campaigned aggressively on White's behalf. There were no threats to riot in case of an acquittal.

The centerpiece of White's self-defense argument was his recollection of his grandfather's stories about the Ku Klux Klan. George Zimmerman's memory of young black males committing crimes at Twin Lakes is somewhat more recent.

John White wasn't jumped, knocked to the ground, repeatedly punched, and his skull knocked against the ground. He wasn't even touched, though he claimed the white teen was lunging at him. Talk about no reason to "follow," there was no reason for him to leave the safety of his locked home. White's son knew the kids by name. They could have waited for the cops.

So, yes, this case probably would be very different if Zimmerman and Martin's races were reversed. It is only when the victim is black that we must have a show trial, a million-dollar reward paid to the victim's parents and the threat of riots. 


http://townhall.com/columnists/anncoulter/2013/07/10/this-years-duke-lacrosse-case-n1638235/page/full


Supposed Crimes of the Mind

With hate speech, it’s the perceived ideology of the perpetrator that matters most.

When do insensitive words destroy reputations?

It all depends.

Celebrity chef Paula Deen was dropped by her TV network, her publisher, and many of her corporate partners after she testified in a legal deposition that she used the N-word some 30 years ago. The deposition was made in a lawsuit against Deen and her brother over allegations of sexual and racial harassment.

Actor Alec Baldwin recently let loose with a barrage of homophobic crudities. Unlike Deen, Baldwin spewed his epithets in the present. He tweeted them publicly, along with threats of physical violence. So far he has avoided Paula Deen’s ignominious fate.

Does race determine whether a perceived slur is an actual slur?

It depends.

Some blacks use the N-word in ways supposedly different from those of ill-intentioned white racists. Testimony revealed that the late Trayvon Martin had used the N-word in reference to George Zimmerman and had also referred to Zimmerman as a “creepy-ass cracker” who was following him.

Some members of the media have suggested that we should ignore such inflammatory words and instead focus on whether Zimmerman, who has been described as a “white Hispanic,” used coded racist language during his 911 call.

Actor Jamie Foxx offers nonstop racialist speech of the sort that a white counterpart would not dare. At the recent NAACP Image Awards (of all places), Foxx gushed: “Black people are the most talented people in the world.” Earlier, on Saturday Night Live, Foxx had joked of his recent role in a Quentin Tarantino movie: “I kill all the white people in the movie. How great is that?” 

Foxx has not suffered the fate of Paula Deen. He certainly has not incurred the odium accorded comedian Michael Richards, who crudely used the N-word in 2006 toward two African-American hecklers of his stand-up routine.

Yet whites at times seem exempt from any fallout over the slurring of blacks. Democratic Minnesota state representative Ryan Winkler recently tweeted of Supreme Court Justice Clarence Thomas’s vote to update the Voting Rights Act: “VRA majority is four accomplices to race discrimination and one Uncle Thomas.” Winkler’s implication was that four of the jurists were veritable racists, while Thomas was a sellout. After a meek apology, nothing much happened to Winkler.

Winkler’s “Uncle Thomas” racial slur was mild in comparison to the smear of Justice Thomas by MSNBC talking head and African-American professor Michael Eric Dyson, who made incendiary on-air comments invoking Hitler and the Holocaust.

Does profanity against women destroy celebrity careers? Apparently not.

TV talk-show host Bill Maher used two vulgar slang terms with reference to Sarah Palin, without any major consequences.

Those Palin slurs were mild in comparison to late-night television icon David Letterman’s crude riff that Palin’s then-14-year-old daughter had been impregnated by baseball star Alex Rodriguez.

In contrast, when talk-show host Rush Limbaugh demeaned activist Sandra Fluke as a “slut,” outrage followed. Sponsors were pressured to drop Limbaugh. Some did. Unlike the targeted Palin, Fluke became a national icon of popular feminist resistance.

So how do we sort out all these slurs and the contradictory consequences that follow them?

Apparently, racist, sexist, or homophobic words themselves do not necessarily earn any rebuke. Nor is the race or gender of the speaker always a clue to the degree of outrage that follows.

Instead, the perceived ideology of the perpetrator is what matters most. Maher and Letterman, being good liberals, could hardly be crude sexists. But when the conservative Limbaugh uses similar terms, it must be a window into his dark heart.

It’s apparently OK for whites or blacks to slur the conservative Clarence Thomas in racist terms. Saying anything similar of the late liberal justice Thurgood Marshall would have been blasphemous.

In short, we are dealing not with actual word crimes, but with supposed thought crimes.

The liberal media and popular culture have become our self-appointed thought police. Politics determines whether hate speech is a reflection of real hate or just an inadvertent slip, a risqué joke, or an anguished reaction to years of oppression. 

Poor Paula Deen. She may protest accusations of racism by noting that she supported Barack Obama’s presidential campaigns. But the media instead fixate on her Southern accent and demeanor, which supposedly prove her speech was racist in a way that utterances by the left-wing and cool Jamie Foxx could never be.

We cannot forgive the conservative Mel Gibson for his despicable, drunken anti-Semitic rant. But it appears we can pardon the liberal Alec Baldwin for his vicious, homophobic outburst. The former smears are judged by the thought police to be typical, but the latter slurs are surely aberrant.

The crime is not hate speech, but hate thought — a state of mind that apparently only self-appointed liberal referees can detect.

 http://www.nationalreview.com/article/353130/supposed-crimes-mind-victor-davis-hanson

Late-Night Shenanigans in the House

The House leadership appears to be pulling a fast one on the American public and even fellow House members when it comes to the farm bill.

The House has split up the farm-related programs and food stamps, which is great news. However, they didn’t make a single reform. That’s not the worst part, though.

Every five years or so, Congress passes a new farm bill. The entire purpose of this reauthorization process is for Congress to fix the law if problems exist. The House appears to be doing away with this process for many of the most costly farm program provisions. As a result, bad public policy could be locked in indefinitely.

House leaders have sold this flawed farm-related bill in part by getting rid of existing "permanent law." So it may surprise many that the bill would just replace this existing permanent law with new permanent law that may even be broader in scope.

Further, the House introduced the text of its farm-only bill last night, and current plans are to vote on the bill as soon as mid-morning today. They are rushing it through the process and not giving members a chance to offer amendments, properly review the bill, or even determine the extent of this potential bait and switch when it comes to permanent law.

farmRecipe_v3

This flawed bill simply brings the same troublesome farm programs up for a vote that were considered and soundly rejected by the House a few weeks ago.

Everything that was bloated and egregious in the bill is still bloated and egregious.


  • It still goes out of its way to tax Christmas trees, in an effort to override the Obama Administration's decision to not tax Christmas trees.
  • It still drives up food prices—which hurts low-income Americans most.
  • It still spends more than President Obama even wanted to spend on the costliest farm program, crop insurance.
  • It still hands out taxpayer money to these surprising recipients.
As Heritage expert Daren Bakst wrote:
The current agriculture portions of the House bill need to be reformed. They were flawed when they were combined with the food stamp program, and they will still be flawed if they are separated from food stamps. These sections don’t magically get better by being on their own.
Bakst noted that the House’s insistence on pushing the same old bill to a quick vote—without allowing amendments—only makes matters worse:
When a bill makes Obama look fiscally responsible, it’s a financial fiasco. When the process would trample on open and representative government, it’s an insult to American citizens.
 http://blog.heritage.org/2013/07/11/morning-bell-late-night-farm-bill-shenanigans-in-the-house/?roi=echo3-16220090235-13616789-faf3caca1c8149dbf5b68b54abba7650&utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell

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