Limited Government

‘London Whale’ upsets J.P. Morgan

As many of you may already know, insvestment banking firm J.P Morgan recently lost nearly $2.3 billion dollars on some very, very, bad bets.

Sources in the MSM accordingly, show a trader only dignified by the sobriquet ‘London Whale’ was able to hedge together larger shares of Morgan company money and place them on malevolent trade returns. They did not pay off.

Some circles call it business as usual. Other circles call this collusion, or extended risk. Yet others would call this, hedging- or: placing large assets on wide-open targets, at just the right time and place. I don’t need to mention the implications of this; we’re back to 2007, when the Recession we are currently in, evolved- by these means.

Now, clearly- you could claim- the company knew what it’s employees were aiming at with their stoked assets. They didn’t. This story is just emerging, but it seems clear that this is a perfect example of those who don’t know what they are doing, laksadaising large amounts of money; and wielding power so great, there could be serious repercussions.

Gladly, at least so far, there have been few.

Nevertheless, what this shows is not only nefariousness on the part of some, but also the evident close ties in finance between Europe and the United States. We may think this country is just pulling from a recession, when in reality we’re right back to 2007, or earlier.

Entire Markets and nations are tanking in Europe: acidic debt scouring away at the health of entire economies. The European Union ready to dissect into multiple breakaway-province nationalities. National furor is high, while economic support has hit all-time lows.

At first sight, the entire investments-gone-wrong scenario would yearn for more oversight- but beware of what you ask for! Oversight by whom? I don’t think market regulation is a particularly good example of solving fiscal ‘problems’ by any stretch of the economic imagination.

Gary Johnson Won’t Spoil Romney

Much hash has been made lately of Gary Johnson taking the Libertarian Party nomination. He is probably the highest-profile candidate to run for the party in the past twenty years, thanks to his eight years of executive experience in New Mexico as a Republican, his hard-hitting libertarian principles, and the fact that, well, let’s face it: the guy is just cool.

I mean, scaling Mt. Everest? Vetoing over 750 bills? Saying weed, gay rights, and gun rights are all a-ok? That’s just not something that comes around every four years. And he’s also (relatively) young, which is always a plus. (Sorry, Ron.)

Naturally, though, a lot of people are exhibiting signs of a disease calling “Spoileritis.” A perfect example comes from a comment on Bob Barr’s Daily Caller column about Gary Johnson. Our erudite fan writes

A vote for this party is a vote for Obama.  Period.  Consider yourselves responsible for the destruction of this country for good!

Except there is zero evidence that this is the case.

Gary Johnson’s calls to slash 43% of military spending, end the Drug War, and most importantly, unabashedly legalize same-sex marriage, none of which are positions held by most Republicans. Instead, those positions are decidedly liberal, more on the side of Obama’s supporters. So when people go to the polls this November, it is likely that he will draw more supporters from Obama’s camp than Romney’s.

Chris Barron, chair of GOProud, the GOP’s gay and lesbian group, said the same thing in an interview with the Daily Caller’s Matt Lewis:

Can we just sell the Post Office already?

On Wednesday, the United States Senate narrowly avoided a two-year ban on the closing of post offices, which prompted me to ask: do you guys still live in the 1950s?

In a world of Gmail, Twitter, Facebook, cloud services, Google Drive, Dropbox, 3D printing, UPS, DHL, and who knows what else, I have to ask: who still uses the postal service any more?

There are only a few people with which I still get mail from through the USPS. The first are direct mail types, and nobody reads those sort of things. (This is the way your trash can goes “OM NOM NOM.”) The second are my parents and grandparents, so, in other words, old people.

The thing is, as I said, nobody is reading the former, and the latter are getting fewer and fewer. Meanwhile, the postal service is hemmorraghing money; the Cato Institute’s Downsizing Government project notes that it lost $20 billion between 2007 and 2010, and it hasn’t done any better since then. The thing is, we taxpayers are being forced to foot the bill. A bill for something that these days, an increasingly small portion of the populace actually wants. And, at the same time there’s decreasing demand for its services, its costs have continued to go up as it struggles to deal with employee pensions. Not a good situation to be in.

Here’s a better idea: let’s just privatize the post office. And by privatize it, I don’t mean sell it to one major corporation, but let’s privatize the entire industry. Allow competing mail delivery services in the market. Ensure that there are no more monopolies on first-class mail within the United States.

INFOGRAPHIC: TSA Waste — Grope & Pillage

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TSA Waste
Created by: OnlineCriminalJusticeDegree.com

 

Impeaching Obama? Impeach Congress

If you live inside the beltway, you may have heard that Rep. Walter Jones (R-NC) has put forward a bill that would make any instance of the executive using the military without going through Congress an impeachable offense:

In a House Resolution introduced last week, Rep. Walter B. Jones (R-NC) put forward use of the military by the executive branch without explicit authorization from Congress as an impeachable offense: one which some conservatives believe President Barack Obama has already committed.

The bill’s author, Rep. Jones, was once a Democrat who switched parties before seeking congressional office in the 90s. He endorsed former Rep. Ron Paul (R-TX) for president in 2008, and has been one of the Republican Party’s loudest critics of the presidency’s warmaking powers.

“When you talk about war, political parties don’t matter,” he told The New York Times last year.

While not directly calling for impeachment, the bill would declare “that it is the sense of Congress that, except in response to an actual or imminent attack against the territory of the United States, the use of offensive military force by a president without prior and clear authorization of an act of Congress violates Congress’s exclusive power to declare war… and therefore constitutes an impeachable high crime and misdemeanor under Article II, Section 4 of the Constitution.”

In other words, the bill would, in effect, serve as a trigger mechanism for impeachment proceedings.

The Coase Theorem in Action: Exercise Edition

 Emily is the in-shape person on the right.

Crossposted from The Dangerous Servant.

My girlfriend Emily, fierce competitor and endurance athlete, celebrated her first “Whole Iron Woman” blog anniversary over the weekend — you can count that among one of many proud boyfriend moments!

While it’s a bit late for Valentine’s Day, gushing over one’s significant other is never out of style. Emily and I met several years ago when I was on hiatus from college and working as a bartender at a small, independent restaurant in Nashville. Unbeknownst to me, I waited on her and her family a time or two before we actually met. After being introduced by mutual friends, we went out a couple times (and by “went out” I mean I dragged her to my favorite dive bar, and then to my bi-weekly all-night poker game), and we eventually lost touch after she moved to New Jersey to work on statewide races.

Who Has The Party Delegates?

What all the GOP candidates are after, are so-called ‘delegates.’Elected officials that will broker the convention of either party this fall. Officials are parcelled by the amount of votes, the candidates receive in the primary.

During Michigan’s primary recently, for instance, there were 30 official delegates, state-wide. Two were ‘at-large’ candidates, which meant they could be assigned individually to any winning candidate. The other 28 were ‘proportional’ ones, alotted through 14 congressional districts. During the push for the nominations in Michigan last night, Mitt Romney and Rick Santorum spent millions of dollars to influence the voting population; with TV ads, pamphlets, media, interviews, rallies, stickers, and much more. Michigan’s grand sum of politcal expenditure was near six million bucks.

Delegates are what really counts at the GOP convention. What looks to be happening, is that no clear winner will come out victorious. There’s a righteous number: 1444 delegates will win any nominee the victory-nod of the Republican National Committee. Nationwide, 2169 delegates are extended for contestation, until the RNC celebration in Tampa, Florida. From the RN Committee, an additional 117 delegates are added into the mix, ostensibly to keep debate lively and clear-up dead locks. So what appears, on first looks, to be a rather hot-headed and fast paced Republican rocket-launch to the RNC, is more like a jammed or misfired pistol in a duel.

Momentarily, Mitt Romney is in the lead, with 167 total delegates. Rick Santorum is second with roughly half, at 87. Newt Gingrich won only one state and has 32, while Ron Paul has 19 carefully collected delegations. The count may reshuffle at any moment, since constitutionalism and populism together, ring alarm-bells in states such as Arkansas, Kentucky, Tennessee, Texas, Oklahoma and New Mexico.

Why The Libertarian-Conservative Alliance Can’t Survive Rick Santorum

Rick Santorum, after his recent wins in Minnesota, Colorado, and Missouri; appears to be the GOP frontrunner. If you look at Santorum’s record and rhetoric, he would appear to be the best fit for the Republican Party. Indeed, it is almost hard now not to imagine a scenario where Santorum is not the nominee.

However, if the GOP decides to nominates him, it will put an end to the fiction that the GOP is a limited government party. It will also put an end to what is left of the conservative-libertarian alliance.

Santorum is the only candidate running for president who is openly hostile to libertarianism. Santorum’s record is abysmal on fiscal issues. He voted for the Medicare prescription drug entitlement, No Child Left Behind, numerous earmarks and pork barrel projects, voted against NAFTA and is generally opposed to free trade. His proposals on foreign aid have won praise from Bono, the rest of the Third World poverty pimps, and their allied Tranzi NGOs. The Sweater Vest also wants to maintain a tax code that is riddled full of deductions and loopholes rewarding selected constituencies, instead of proposing a simpler system that is fairer to all. Rick Santorum, far from being the next Reagan, appears to be a compassionate conservative in the mold of George W. Bush. Finally, Rick Santorum last summer in a speech declared war on libertarians.

In a Pennsylvania Press Club luncheon in Harrisburg last summer, Santorum declared, “I am not a libertarian, and I fight very strongly against libertarian influence within the Republican Party and the conservative movement.”

The Road To Tax Reform: More Potholes Than I Like

Some panels are off in nowhere, little rooms here and there. Other panels are in giant ballrooms, like the Marshall Ballroom, second largest to the Marriott where all the major speakers are, well, speaking. (Perhaps “blustering” is a better word.) And sometimes, those ballrooms were not full. But then maybe I got there early.

It was certainly an illustrious panel, which explained why it began to fill up shortly after it officially began. It was chaired by Grover Norquist himself, President of Americans for Tax Reforms, and the legendary proponent of the “No New Taxes” Pledge he encouraged (some on the left would say “forced”) politicians to take up. To his right was Lew Uhler , chair of the National Tax Limitation Committee, and to his left were Benjamin Powell of the Independent Institute and Phil Kerpen, Vice President for Policy, of Americans For Prosperity. I went because the subtitle implied there was going to be a debate between supporters of the Flat Tax, Fair Tax, a VAT, and maybe even 9-9-9—and that plan’s author, Rich Lowrie, did show up in the audience. But there really wasn’t any debate on that front.

And let’s face it, what kind of debate can we really have on taxes? Even the left admits that the tax code we have now is horrifically complex, prone to corruption and gaming the system. Though they disagree about “broadening the base and lowering the rates,” I don’t think any sane American, left, right, or center, can look at the miasma we have now and say, “Yeah, it works.” For whom?

There were some interesting points to be made, but ultimately I didn’t think the solutions that Norquist posed during question time were all that good. But let’s focus on the interesting first:

Is Libertarianism Part of the Conservative Movement?

Last night I attended a debate held at the American Enterprise Institute between Jonah Goldberg of National Review Online (and the Institute itself), author of Liberal Fascism and other notable works, and Matt Welch, of reason fame and the author of The Declaration of Independents. The question posed by the debate has been argued over ever since Franklin Delano Roosevelt began the New Deal, and conservatives and libertarians—then known as “classical liberals”—allied in order to present a unified front to keeping the massive new nanny state at bay. It was reinforced in the fifties when William Buckley formed National Review, and presented his argument for a “fusionist” political movement. It’s been going on for a long time, and it will continue to go on long into the future. Despite the jokes about it, the debate did not solve the question for most people. I, however, left convinced more than ever that libertarianism and conservatism do not mix.

 


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