July 3rd, 2009 by Bruce McQuain
I don’t use the “L” word very often but in this case it seems completely appropriate.
The question:
Would a government-run health plan upend the employer-based health insurance system used by 160 million Americans?
The Democrats claim the answer is ‘no’.
Here’s their rationalization:
Sens. Edward Kennedy, D-Mass., and Chris Dodd, D-Conn., say their plan would preserve employer-sponsored insurance coverage and create an affordable public option for those who need it.
“The … bill virtually eliminates the dropping of currently covered employees from employer-sponsored health plans,” Kennedy and Dodd said in a letter to members of the Health Committee, one of two Senate groups working on health reform.
The bill includes a “pay or play” provision that would require employers to provide adequate coverage for their workers or subsidize a system that will.
“Pay or play” would require companies to pay the government $750 per full-time worker per year ($375 for part-timers) if they don’t offer health coverage, or if they offer “qualified” coverage but pay less than 60% of workers’ premiums. Small businesses that employ fewer than 25 workers would be exempt.
The Congressional Budget Office, which analyzed the legislation, estimated that by 2019 the same number of workers would be covered by employer-based plans as would otherwise be the case under the current system.
“It tracks what we’re seeing in Massachusetts,” a senior Democratic aide on the Senate Health Committee said on a conference call with reporters.
I’ve put the lie in bold. Why is it a lie? Anyone out there have a $750 a year health care plan? Anyone? I don’t know of a plan for an individual that costs only $750. If there is, then there’d be no reason for any of this nonsense would there?
And Kennedy and Dodd (and the Democrats), the supposed “experts” on health care know that very well. This is pure disingenuousness on their part. This is a blatant attempt to launch a lie to get them past a very important sticking point in the public perception of the bill.
But the average – average – individual health care insurance cost in the US is almost $4,000. And then there’s the cost of administering it.
Hypothetical – you employ 100 people. Let’s say your company pays full health care coverage at the national average (for simplicity sake, assume they all have individual policies). You have two people who administer the coverage at $35,000 each. Your total cost each year to cover your employees is $470,000.
If you pay the federal government $750 per employee a year, your total cost is $75,000. But you can let the two people you’ve had administering your health care program go, saving $71,500 (includes -$1,500 for 2 less employees). Total cost of “pay or play” for you? $3,500 the first year ($73,500 vs. $470,000 every year afterward). In reality, however, it is a net savings of $466,500. You don’t have to be a very good businessman to figure out that one do you?
And remember – these figures only involve “individual” coverage. Family coverage is much more costly, but I see nothing from our two Senate experts which even addresses that. So obviously, the cost of the health care of 100 employees could be vastly more than my simplified example.
No wonder we see corporations coming out now to back this sort of a program. For the vast majority of them, $750 per employee is a huge savings not to mention getting them out of the health care provision and administration business. They’ll pay it gladly. If you like your doctor or your plan, tough beans. You’re going on the government plan. And, of course, the administration will be more than happy to blame your problem on “greedy corporations.”
When they do, just consider the lie and the incentive it provides and then lay the blame precisely where it belongs. Not that it will do you any good where it concerns your present doctor and plan.
Just another step along the road to single-payer brought to you by two lying Senators and backed by the CBO.
~McQ
Tags: Christopher Dodd, Ted Kennedy
Posted in Bruce McQuain, Freedom and Liberty, Health Care, Nanny State | 3 Comments »
July 3rd, 2009 by Bruce McQuain
Octavio Sanchez, writing in the Christian Science Monitor, takes exception to the charges that what happened with the removal of President Manuel Zelaya. was a military coup.
Instead, he says, it was a “triumph of the rule of law.” And he gives the world a little lesson in the Honduran Constitution.
In 1982, my country adopted a new Constitution that enabled our orderly return to democracy after years of military rule. After more than a dozen previous constitutions, the current Constitution, at 27 years old, has endured the longest.
It has endured because it responds and adapts to changing political conditions: Of its original 379 articles, seven have been completely or partially repealed, 18 have been interpreted, and 121 have been reformed.
It also includes seven articles that cannot be repealed or amended because they address issues that are critical for us. Those unchangeable articles include the form of government; the extent of our borders; the number of years of the presidential term; two prohibitions – one with respect to reelection of presidents, the other concerning eligibility for the presidency; and one article that penalizes the abrogation of the Constitution.
Sanchez makes the point that Honduras has gone through same sort of “trial and error” process with its constitution as has the US, France and other nations. But he then focuses on the 7 articles that cannot be repealed or amended. They form the crux of the case against Zelaya.
These are the facts: On June 26, President Zelaya issued a decree ordering all government employees to take part in the “Public Opinion Poll to convene a National Constitutional Assembly.” In doing so, Zelaya triggered a constitutional provision that automatically removed him from office.
Constitutional assemblies are convened to write new constitutions. When Zelaya published that decree to initiate an “opinion poll” about the possibility of convening a national assembly, he contravened the unchangeable articles of the Constitution that deal with the prohibition of reelecting a president and of extending his term. His actions showed intent.
Our Constitution takes such intent seriously. According to Article 239: “No citizen who has already served as head of the Executive Branch can be President or Vice-President. Whoever violates this law or proposes its reform [emphasis added], as well as those that support such violation directly or indirectly, will immediately cease in their functions and will be unable to hold any public office for a period of 10 years.”
Notice that the article speaks about intent and that it also says “immediately” – as in “instant,” as in “no trial required,” as in “no impeachment needed.”
Supreme Court Justice Rosalinda Cruz defended the ouster of Zeyala as well:
The arrest order she cited, approved unanimously by the court’s 15 justices, was released this afternoon along with documents pertaining to a secret investigation that went on for weeks under the high court’s supervision.
Others have also defended Zeyala’s removal:
David Matamoros, a member of Honduras’ Supreme Electoral Tribunal, also defended the military’s action.
He said Zelaya originally called the vote a plebiscite, then, when that was barred, shifted to describing it as a poll, creating uncertainty as to its legal standing and his intent. No government agency was willing to conduct the vote, he said. All the ballots and equipment for the illegal poll were flown in on a Venezuelan plane, he said. The court ordered the materials confiscated.
Nothing has been said about the apparent meddling by Venezuela. Nor has there been any investigation by those so interested in immediately condemning the action taken by the authorities in Honduras as a “military coup” into the constitutional claims of the interim government. Given Sanchez’s description of the evidence and the constitutional provisions, it appears he may be right – this was indeed a triumph of the law.
So why was Zelaya flown out of the country instead of being arrested?
The Supreme Court and the attorney general ordered Zelaya’s arrest for disobeying several court orders compelling him to obey the Constitution. He was detained and taken to Costa Rica. Why? Congress needed time to convene and remove him from office. With him inside the country that would have been impossible. This decision was taken by the 123 (of the 128) members of Congress present that day.
15 justices of the Supreme Court, 123 of 128 Congress members, the Attorney General, the Supreme Electoral Tribunal and the military all acted in concert and apparently within the law and the constitution, to remove someone who had violated the constitution and essentially impeached himself.
Says Sanchez:
Don’t believe the coup myth. The Honduran military acted entirely within the bounds of the Constitution. The military gained nothing but the respect of the nation by its actions.
I am extremely proud of my compatriots. Finally, we have decided to stand up and become a country of laws, not men. From now on, here in Honduras, no one will be above the law.
Given that explanation and assuming it is the case, it seems we should be celebrating what Honduras has done instead of condemning it.
~McQ
Tags: Honduras, Manuel Zeyala
Posted in Bruce McQuain, Constitution, Foreign Affairs, Freedom and Liberty, Legal Affairs, Obama Administration | 2 Comments »
July 2nd, 2009 by Dale Franks
First of all, let’s compare the current situation with employment with what the Obama Adnministration told us would happen if we didn’t pass the stimulus package. As has been obvious for some time now the stimulus is not–as we repeatedly predicted–substantially impacting the employment situation.

Unemployment: Promised v. Actual
Instead, employment has risen by more than 3%.
Now, today’s surprise was not that there were a net 467,000 jobs lost last month, but that the employment rate went up by only 0.1%. The answer to that mystery is found in the employment data from the BLS, which shows that the civilian labor force declined by 358,000 people last month.
The Bureau of labor Statistics uses a neat bit of sleight-of-hand when calculating the unemployment rate. If you are not in the workforce, you aren’t counted as unemployed. You disappear from the numbers.
There are a number of ways to leave the labor force. You can retire. You can become injured or disabled. Or, you can simply become so discouraged that you stop looking for a job.
For the latter category, that means you may still not have enough money to house and clothe your family. and you might still really want to work. But there are no jobs for you, and if you stop actively looking for work, then you drop out of the labor force.
Granted, there’s no other way to really count the labor force, but this does help explain why the employment rate remained much more restrained vis a vis the actual number of net job losses. The number of people not in the labor force increased from 80,371,000 in May to 80,729,000 in June. That nearly equals the number of job losses, so the unemployment rate comes out nearly even.
Posted in Dale Franks, Economics, Economy | 5 Comments »
July 2nd, 2009 by Bruce McQuain
And after reading this, it won’t be hard to do:
Pakistan’s top Taliban leader, Baitullah Mehsud, is buying children as young as 7 to serve as suicide bombers in the growing spate of attacks against Pakistani, Afghan and U.S. targets, U.S. Defense Department and Pakistani officials say.
A Pakistani official, who spoke on the condition that he not be named because of the sensitive nature of the topic, said the going price for child bombers was $7,000 to $14,000 – huge sums in Pakistan, where per-capita income is about $2,600 a year.
“[Mehsud] has turned suicide bombing into a production output, not unlike [the way] Toyota outputs cars,” a U.S. Defense Department official told reporters recently. He spoke on the condition that he not be named because of ongoing intelligence efforts to catch Mehsud, a prime target for a U.S. and Pakistani anti-Taliban campaign.
People like Mehsud claim to represent a religion of peace and act on its behalf. Yet no religion of peace would ever sanction or condone actions such as this. Perhaps it is time we quit accepting their stated claims that they’re Islamic warriors and call them what they deserve to be called – animals barely worth the price of a bullet.
Rarely will you find me using the term “exterminate”. But when I read things like this, I truly believe that the Taliban are more than deserving of complete and utter extermination. This is a “seed” which needs to germinate no further.
God speed to the 4,000 Marines who’ve just launched Operation Khanjar. May their aim be true enough to bring down this miserable swine somewhere along the line.
~McQ
Tags: Baitullah Mehsud, Marines, Operation Khanjar
Posted in Afghanistan, Bruce McQuain, Military Affairs, Terrorism, War | 4 Comments »
July 2nd, 2009 by Bruce McQuain
A couple of quick examples of real world problems with government run health care. South Africa:
KwaZulu-Natal health MEC Dr Sibongiseni Dhlomo has issued an ultimatum to striking doctors, calling on them to return to work on Friday or face the music.
Addressing the media in Durban on Friday, Dhlomo said notices had been sent to all hospitals calling on all striking doctors, dentists and pharmacists to resume their duties no later than 08:00.
The department was also preparing a court interdict to force the striking health professionals to end the strike, he said.
“We as the department of health are designated as an essential service provider and therefore find the action of these health professionals [is] disrupting service delivery and compromising patients’ lives,” said Dhlomo.
He said the department had been more than reasonable in dealing with the unprotected strike.
“This situation is untenable, we cannot continue to put the lives of our people in danger and the government will act,” he said.
Dhlomo said people had died due to the unavailability of doctors, although he was unable give the number of people who died as a result of the strike.
A recent example you’re probably more familiar with from Canada:
A critically ill premature baby is moved to a U.S hospital to get the treatment she couldn’t get in the system we’re told we should emulate. Cost-effective care? In Canada, as elsewhere, you get what you pay for.
Ava Isabella Stinson was born last Thursday at St. Joseph’s hospital in Hamilton, Ontario. Weighing only two pounds, she was born 13 weeks premature and needed some very special care. Unfortunately, there were no open neonatal intensive care beds for her at St. Joseph’s — or anywhere else in the entire province of Ontario, it seems.
Canada’s perfectly planned and cost-effective system had no room at the inn for Ava, who of necessity had to be sent across the border to a Buffalo, N.Y., hospital to suffer under our chaotic and costly system. She had no time to be put on a Canadian waiting list. She got the care she needed at an American hospital under a system President Obama has labeled “unsustainable.”
And this one:
In 2007, a Canadian woman gave birth to extremely rare identical quadruplets — Autumn, Brooke, Calissa and Dahlia Jepps. They were born in the United States to Canadian parents because there was again no space available at any Canadian neonatal care unit. All they had was a wing and a prayer.
The Jepps, a nurse and a respiratory technician flew from Calgary, a city of a million people, 325 miles to Benefit Hospital in Great Falls, Mont., a city of 56,000.
Great Falls was better equipped to handle their case than was Calgary? People like to dismiss these as “anecdotal”, but they continue to describe a system in which decisions have been made that end up endangering the lives of children. It is inevitable when the primary focus of “reform” is “lowering cost”.
Doctor’s strikes. Limited if not completely unavailable neo-natal care. The refusal of the system, based on cost concerns only, to provide certain care that places the lives of those on the margin in jeopardy.
Is that what we have to look forward too?
~McQ
[HT: Micaela S]
Tags: Canada, government health care, South Africa
Posted in Bruce McQuain, Freedom and Liberty, Health Care, Obama Administration | 4 Comments »
July 2nd, 2009 by Bruce McQuain
One of the favorite arguments of the government health care crowd is the supposed Medicare low overhead argument – i.e. Medicare is more efficient than private insurance because its overhead is so much lower than private administrative costs.
It goes like this:
But the administration of Medicare is a miracle of low overhead and a model, despite all the fraud and abuse, of what government can do right. Three percent of Medicare’s premiums go for administrative costs. By contrast, 10 to 20 percent of private-insurance premiums go for administrative costs. Roll that figure around on your tongue. When you swallow and digest it, you’ll understand that any hope of significantly reducing health-care costs depends on a public option.
Right now, the Medicare average is 3% and private insurance averages 12%. But Tom Bevan points out, some of that difference is an apples and oranges comparison:
But here’s the catch: because Medicare is devoted to serving a population that is elderly, and therefore in need of greater levels of medical care, it generates significantly higher expenditures than private insurance plans, thus making administrative costs smaller as a percentage of total costs. This creates the appearance that Medicare is a model of administrative efficiency. What Jon Alter sees as a “miracle” is really just a statistical sleight of hand.
Furthermore, Book notes that private insurers have a number of additional expenditures which fall into the category of “administrative costs” (like state health insurance premium taxes of 2-4%, marketing costs, etc) that Medicare does not have, further inflating the apparent differences in cost.
However, when you make an apples to apples comparison, Medicare comes out much worse than private insurance:
But, as you might expect, when you compare administrative costs on a per-person basis, Medicare is dramatically less efficient than private insurance plans. As you can see here, between 2001-2005, Medicare’s administrative costs on a per-person basis were 24.8% higher, on average, than private insurers.
So, contrary to claims of Alter, Krugman, and President Obama, moving tens of millions of Americans into a government run health care option won’t generate any costs savings through lower administrative costs. Just the opposite.
Make sure you click through and check out the real Medicare administrative costs as compared to private industry.
Then there’s waste fraud and abuse. Did you happen to catch that little hand wave at “fraud and abuse” in the first quote touting Medicare’s efficiency? What, pray tell, is one of the primary jobs of an administive system? Would you imagine it to be the elimination of fraud and abuse – or said another way, to ensure that the company pays legitimate claims and avoids fraudulent and unnecessary payments?
How efficient is a system which is awash in both fraud and abuse? And, without profit, what incentive do they have to eliminate it?
John Stossel takes that part of the “Medicare efficiency” myth apart:
But there’s a bigger point – the connection between “low” administrative costs and staggeringly HIGH levels of fraud and waste. As Michael Cannon at the Cato Institute and Regina Herzlinger at Harvard Business School have pointed out, much of the 10 to 20 percent of private insurance administrative costs goes to preventing fraud. Private insurers, you see, care about whether or not they lose money. Medicare, with its unlimited claim on the public purse, does not. It’s only taxpayer money, after all.
The results are predictable, but breathtaking nonetheless: an estimated $68 billion (with a B) in outright Medicare fraud every year (About $3 billion in Miami-Dade county ALONE.) On top of that, according to well-respected Dartmouth researchers, roughly a third of Medicare’s total $400 billion annual spending goes to procedures which were medically unnecessary.
That’s, on average, 68 billion every year. Imagine a private insurance company surviving with loss figures like that. But as Stossel points out, without an incentive to eliminate fraud and abuse, it continues year after year after year, with politicians and Medicare administrators tut-tutting but never really doing anything about it.
That is the reality of Medicare’s efficiency. It is also the probable model any future health care insurance run by the government. Efficiency is an illusion brought about by a statistical sleight of hand and ignoring the systemic waste, fraud and abuse of Medicare.
~McQ
Tags: efficiency, John Stossel, Medicare, Tom Bevan
Posted in Bruce McQuain, Government, Health Care, Obama Administration | 7 Comments »
July 1st, 2009 by Bruce McQuain
For the American taxpayer, under the shadow of the recently passed House cap-and-trade (Waxman-Markey) bill, the news continues to be grim. However for the traitorous “deniers”, aka skeptics, who believe the whole climate change hysteria to be an economy killing farce, things are looking better.
For instance India has announced it will not participate in the Western world’s attempts to kill their own economies:
India said it will reject any new treaty to limit global warming that makes the country reduce greenhouse-gas emissions because that will undermine its energy consumption, transportation and food security.
Cutting back on climate-warming gases is a measure that instead must be taken by industrialized countries, and India is mobilizing developing nations to push that case, Environment Minister Jairam Ramesh told the media today in New Delhi.
“India will not accept any emission-reduction target — period,” Ramesh said. “This is a non-negotiable stand.”
Heh … fairly blunt and straight foward wouldn’t you say? Of course, China took the same stand a couple of weeks ago. I call that good news because it is another country which has decided to put its economy first and this nonsense second. When two countries which are or expected to be very soon the two leading emitters of CO2 say “no”, it makes it rather ridiculous for the rest of the world to say “yes” given the consequences vs. payoff, doesn’t it?
And the US cap-and-trade legislation? Well India sees that as a “no-go” as well:
But last week, the US House of Representatives backed a “border adjustment tax” to equalise carbon emissions charges between domestic production and imports from states that do not cap emissions. The legislation is likely to face tough opposition in the Senate.
Mr Ramesh denounced as “pernicious” US efforts to impose “trade penalties” on countries that do not match its carbon reduction moves.
Meanwhile in the EU:
The European Union risks driving industry out of the region if it continues to push for deeper cuts in carbon dioxide emissions than other economies, according to the chief executive of Eon, one of the world’s biggest renewable energy companies.
Wulf Bernotat, Eon’s chief executive, told the Financial Times that the EU was imposing higher energy costs on its industry than competing regions, and criticised the US for doing “basically nothing” to cut its carbon dioxide emissions.
He added that if there were no international deal to cut emissions agreed at the Copenhagen meeting at the end of the year, the EU would have to rethink its plans to take a lead in fighting the threat of climate change.
“It is a European political issue whether the European Union can continue to lead the policy process if the rest of the world is not joining in,” he said.
“We are adding additional costs to our industries, and if other countries don’t follow, then those industries will move to lower-cost regions.”
Yeah, like India or China … or Mexico. That’s the irony of this nonsense. We have a president and Congress who’ve made a cottage industry of demonizing corporations who “outsource” jobs while they pass legislation that encourages corporations to outsource jobs.
And for those who worship at the feet of Al Gore, another inconvenient truth is to be found in a recently published paper from the Journal of Atmospheric and Solar-Terrestrial Physics:
The Abstract states:
Daily temperature and pressure series from 55 European meteorological stations covering the 20th century are analyzed. The overall temperature mean displays a sharp minimum near 1940 and a step-like jump near 1987. We evaluate the evolution of disturbances of these series using mean squared inter-annual variations and “lifetimes”. The decadal to secular evolutions of solar activity and temperature disturbances display similar signatures over the 20th century. Because of heterogeneity of the climate system response to solar forcing, regional and seasonal approaches are key to successful identification of these signatures. Most of the solar response is governed by the winter months, as best seen near the Atlantic Ocean. Intensities of disturbances vary by factors in excess of 2, underlining a role for the Sun as a significant forcing factor of European atmospheric variations. We speculate about the possible origin of these solar signatures. The last figure of the paper exemplifies its main results.
The paper concludes:
In concluding, we find increasingly strong evidence of a clear solar signature in a number of climatic indicators in Europe, strengthening the earlier conclusions of a study that included stations from the United States (Le Mouël et al., 2008). With the recent downturn of both solar activity and global temperatures, the debated correlations we suggested in Le Mouël et al. (2005), which appeared to stop in the 1980s, actually might extend to the present. The role of the Sun in global and regional climate change should be re-assessed and reasonable physical mechanisms are in sight.
Shorter conclusion?
“It’s the sun, stupid”.
~McQ
Tags: cap-and-trade, China, climate change, India, outsourcing, Sun, trade war
Posted in Environment, Government, Law Of Unintended Consequences, Policy, Taxation, spending | 32 Comments »
July 1st, 2009 by Billy Hollis
Quote of the day, by Greg Gutfeld:
I became a Conservative by being around Liberals and I became a Libertarian by being around Conservatives.
Backers of candidates such as Mike Huckabee might want to think about that.
Posted in Billy Hollis, Libertarian | 14 Comments »
July 1st, 2009 by Bruce McQuain
One more time into the breach. The CBO has issued a warning to Congress about entitlement spending. Again. Here’s a key paragraph:
Almost all of the projected growth in federal spending other than interest payments on the debt comes from growth in spending on the three largest entitlement programs–Medicare, Medicaid, and Social Security.
Most of you know that Medicare and Medicaid have an unfunded future liability of 36 trillion dollars. That’s about 3 times the annual total GDP of the US economy. And they are the very same type of “public option” program – i.e. government insurance – that the left says is so very necessary and crucial to real “health care reform”.
In other words, the left’s argument is that adding at least 47 million (presently uninsured), plus the possibility of adding 119 million who are shifted to the public option from private insurance (private insurance, btw, doesn’t have any effect on the deficit whatsoever since we, the private sector, are paying for it) will somehow make the deficit picture better?
I’m obviously missing something here.
With the public option, we’re adding a new entitlement (47 million who presently supposedly can’t afford insurance, meaning taxpayers will subsidize theirs). Assuming it is set up originally to be paid for by premiums, at some point, like Medicare and Medicaid, and every other government entitlement program I can think of, it will pay out more than it takes in. How can it not? It is a stated “non-profit” program and it will include subsidies. At some point, another revenue stream is going to be necessary as it burns through the premiums with its payouts.
Well, say the proponents of government involvement in your health care, we’re going to save money by doing preventive health care. Yes, preventive care is the key to lower costs because a healthier population is one which visits the doctor less. While that may seem to be at least partially true (you’d think a healthier population would, logically, visit the doctor less) the part that is apparently missed when touting this popular panacea is the cost of making the population healthier (and the fact that the assumption of less visits isn’t necessarily true) doesn’t cost less – it costs more:
If health care providers can prevent or delay conditions like heart disease and diabetes, the logic goes, the nation won’t have to pay for so many expensive hospital procedures.
The problem, as lawmakers are discovering to their frustration, is that the logic is wrong. Preventive care — at least the sort delivered by doctors — doesn’t save money, experts say. It costs money.
That’s old news to the analysts at the Congressional Budget Office, who have told senators on the Health, Education, Labor and Pensions Committee that it cannot score most preventive-care proposals as saving money.
So with that myth blown to hell, we’re now looking at a government plan which will add cost to the deficit by subsidizing the insurance of 47 million and (most likely) many more, plus a plan to use a more costly form of medicine as its primary means of giving care.
But, back to the entitlement report – or warning. The CBO says that unless entitlements are drastically reformed (that means Medicare, Medicaid and to a lesser extent, Social Security) we’re in deep deficit doodoo:
The most frightening findings in this report are the deficit and debt projections. In this year and next year, the yearly budget shortfall, or deficit, will be the largest post-war deficits on record–exceeding 11 percent of the economy or gross domestic product (GDP)–and by 2080 it will reach 17.8 percent of GDP.
The national debt, which is the sum of all past deficits, will escalate even faster. Since 1962, debt has averaged 36 percent of GDP, but it will reach 60 percent, nearly double the average, by next year and will exceed 100 percent of the economy by 2042. Put another way, in about 30 years, for every $1 each American citizen and business earns or produces, the government will be an equivalent $1 in debt. By 2083, debt figures will surpass an astounding 306 percent of GDP.
The report also finds high overall growth in the government as a share of the economy and of taxpayers’ wallets that provides an additional area of concern. While total government spending has hovered around 20 percent of the economy since the 1960s, it has jumped by a quarter to 25 percent in 2009 alone and will exceed 32 percent by 2083. Taxes, which have averaged at 18.3 percent of GDP, will reach unprecedented levels of 26 percent by 2083. Never in American history have spending and tax levels been that high.
Here’s the important point to be made – these projections do not include cap-and-trade or health care reform.
Got that? We’re looking at the “highest spending and tax levels” in our history without either of those huge tax and spend programs now being considered included in the numbers above. Total government spending, as a percent of GDP is now at an unprecedented 25%. And they’re trying to add more while this president, who is right in the middle of it, tells us we can’t keep this deficit spending up forever.
Fair warning.
~McQ
Tags: cap-and-trade, CBO, deficit, entitlements, health care reform, national debt
Posted in Bruce McQuain, Democrats, Economy, Energy, Freedom and Liberty, Health Care, Law Of Unintended Consequences, Obama Administration, Policy, Taxation, spending | 4 Comments »
July 1st, 2009 by Billy Hollis
My colleague in Honduras, who sent me the material I posted yesterday, is back with more today. He’s also fine with using his real name. So please welcome Hector Figueroa for this guest post at QandO, with photos and news from yesterday’s march. (You may click on the thumbnail photos below for full-size versions.)
***************************
Hi Billy,
Aside from have heavy-normal work day here, I managed to be at this march for support to our new authorities. This march went on at larger cities around the country. Unlike the previous government, which ordered its employees to stop working and go march, these were the lucky that managed to leave work and be there.
I’ll grant CNN that they do have these aerials on their site.
Mine, of course, were a bit to be more terrestrial. And to me, it went as far as the I could see. Sorry for the size, this way you have both big and small.

Por esto luchamos unidos. Mel y Chavez fuera!
For this we fight (the book is our Democratic/Republican/Representative Constitution). Mel and Chavez, get out!


Rich & Poor, Young & Old, Workers & Execs, Civilians & Military, Teachers & Students. WE ARE ALL UNITED!!!

Every street was packed.

Our newly appointed President and our hero, Armed Forces Commander.
{I did an extract from this photo showing more detail of the new president, Roberto Micheletti.}

*********************************
Thanks to Hector for furnishing us with this first-hand account. I continue to hope for a resolution to this political crisis that reflects the wishes and needs of the Honduran people.
I would be suspicious of any political figure backed by the UN, Hugo Chavez, and Obama, when the people of his nation are mustering the sort of opposition shown above. It pains me to see Chavez threatening the use of force, especially since he probably perceives that neither we nor the UN will do anything about it if he does.
The UN has passed a resolution insisting that Zelaya be returned to office. Given the kind of opposition shown above, I think that was a short-sighted action. I consider the Obama administration’s position to be short-sighted as well, but given their record to date, it’s not surprising.
My own opinion, guided by my preference to believe my colleague on the scene (and other analysts and witnesses) over political and media hacks, is that removal of Zelaya was justified. I hope the Obama state department and various functionaries at the UN look more closely at Honduran law and re-evaluate their position. I’d particularly like to see a firm warning to Chavez to butt out.
Tags: Chavez, Honduras
Posted in Billy Hollis, Foreign Affairs, Freedom and Liberty, Uncategorized | 11 Comments »
July 1st, 2009 by Bruce McQuain
That’s Glenn Garvin of the Maimi Herald’s question:
For weeks, Zelaya — an erratic leftist who styles himself after his good pal Hugo Chávez of Venezuela — has been engaged in a naked and illegal power grab, trying to rewrite the Honduran constitution to allow him to run for reelection in November.
First Zelaya scheduled a national vote on a constitutional convention. After the Honduran supreme court ruled that only the country’s congress could call such an election, Zelaya ordered the army to help him stage it anyway. (It would be ”non-binding,” he said.) When the head of the armed forces, acting on orders from the supreme court, refused, Zelaya fired him, then led a mob to break into a military base where the ballots were stored.
His actions have been repudiated by the country’s supreme court, its congress, its attorney-general, its chief human-rights advocate, all its major churches, its main business association, his own political party (which recently began debating an inquiry into Zelaya’s sanity) and most Hondurans: Recent polls have shown his approval rating down below 30 percent.
In fact, about the only people who didn’t condemn Zelaya’s political gangsterism were the foreign leaders and diplomats who now primly lecture Hondurans about the importance of constitutional law. They’re also strangely silent about the vicious stream of threats against Honduras spewing from Chávez since Zelaya was deposed.
Warning that he’s already put his military on alert, Chávez on Monday flat-out threatened war against Honduras if Roberto Micheletti, named by the country’s congress as interim president until elections in November, takes office.
I think Garvin’s question is a good one. If you have someone who continues to pursue activities which are clearly not constitutional, and instead is doing everything within his power to subvert said constitution, what do you do?
Well perhaps have the military arrest him and throw him out of the country is not the first action which comes to mind, granted. However, in Honduras, unlike here, the military does have a law enforcement function. That may not be ideal (because of exactly the perception it leaves) but that’s the case. Perhaps, in retrospect, the best thing that could have been done is have civilian law enforcement arrest Zelaya, keep him in the country and put him on trial. Bottom line – it seems his removal was justified based on his actions.
What the world seems to be objecting too most is the method of his removal while ignoring the reasons.
And then, as Garvin points out, we have the thug in Venezuela threatening Honduras while everyone remains silent:
”If they swear him in we’ll overthrow him,” Chávez blustered. “Mark my words. Thugetti — as I’m going to refer to him from now on — you better pack your bags, because you’re either going to jail or you’re going into exile.”
No one denouncing the coup seems to be bothered by Chavez’s threats. In fact, it could be argued that the reaction of the US has green-lighted Chavez and his followers to intervene in some way, to include militarily. Not that Chavez or the Venezuelan military are competent enough to actually do that, but it certainly wouldn’t surprise me now if they tried.
Zelaya was trying to follow Chavez’s template and somehow manage a constitutional change to a permanent presidency through bypassing the constitutionally mandated process and claiming a popular mandate instead. Even his own party didn’t support his attempt and the congress, dominated by that party, passed a law making what Zelaya was attempting illegal. Zelaya attempted it anyway, making what Zelaya was doing a criminal offense. The Supreme Court of Honduras ruled against Zelaya. The Attorney General apparently enforced the law.
Here, we’d call that the “checks and balances” working. There, the result is apparently a “coup”.
The point? In reality, this is not at all a cut-and-dried “military coup” as it is being portrayed. It wasn’t a disgruntled group of military officers who decided to take the law into their own hands and to change the government because they don’t like the form or direction in which it was heading. Instead a rather broad based coalition of politicians, to include those in his party, and other institutions such as the congress (legislative branch) and Supreme Court (judicial branch), found his criminal behavior to be unacceptable and decided to take what they considered to be legal action to prevent a rogue politician from any further attempts at violating the law.
They removed him from office.
And, unlike its reaction to the brutality on display in Iran, the world had an immediate knee-jerk fit.
We now have Venezuela threatening Honduras without a peep from the OAS or the US. We have the OAS now giving Honduras 3 days to reinstall Zelaya or else (what the “else” is is anyone’s guess). We have the president of Argentina sticking her nose into the affair. And we have the showdown tomorrow as Zelaya, in the company of the UN, OAS and Argentine president, reentering Honduras in a bid to retake office. Honduras has said Zelaya will be arrested if he reenters.
Why was there such a rush on the part of the US to denounce this? If sitting back for 10 days and assessing the situation in Iran before speaking was such a good idea as the administration claims, why wasn’t the same true in Honduras? As the facts come out, it seems that it isn’t what it is being characterized as.
If all of the world’s concern is focused on the “democratic process”, where was that concern last week as the now ex leader of Honduras tried to subvert the constitution and claim a mandate by means it prohibited?
Nowhere to be heard. The world was quite content, it seems, to let another declared leftist permanently install himself as a virtual dictator in a Latin American country. But let that country try to enforce it’s constitution, and all hell breaks loose.
~McQ
Tags: Argentina, Honduras, Manuel Zelaya, OAS, UN
Posted in Bruce McQuain, Constitution, Foreign Affairs, Hugo Chavez, Obama Administration, Venezuela | 8 Comments »
June 30th, 2009 by Bruce McQuain
Voluntarily as a part of the agreement signed last year by the Bush administration.
Wow.
I think this is the first time I’ve mentioned Iraq at all for months. That in itself is quite amazing.
In 2006 most people were waiting for the Iraqi version of the last helicopter leaving the US embassy in Saigon. Now, we’re turning over the vast majority of the security work in Iraq to the Iraqis as the people of Iraq celebrate the handover.
Trust me – no one is anymore pleased to be heading out of the cities than US troops. And for the opponents of the war, it’s pretty hard to deny the success that has been built on the surge and the change in strategy implemented by the Bush administration.
In fact, Obama really hasn’t had to do a thing except accept the plan that administration left in place and execute it.
But …
There’s always a “but”. But that doesn’t at all means everything is smooth sailing and unicorns and rainbows are now in Iraq’s future. Instead it means that for the most part, the Iraqi state is functional and at least minimally able to take care of its own security. It also will probably mean, in the absence of US military might, that some of the old players will again try their hand at fomenting violence in a bid to reestablish their agendas for Iraq.
This still remains a red letter day for Iraq, however. And it also is a red letter day for the region. The question is will they continue to make progress or will we see sectarianism and the violence that usually accompanies it reemerges as US troops withdraw.
There are going to be horrific acts of violence in Iraq for a while. That is just the nature of the beast as the last of the dead-enders do their thing. What we have to hope for is the progress to this date continues, Iraqis think of themselves as Iraqis first (and whatever religious sect or ethnic group second) and work toward a stable and democratic Iraq.
Everyone I’ve talked too who’ve been there since the surge, to include Michael Yon, are very encouraged by what they’ve seen and experienced.
Best of luck to the Iraqi people – it is pretty much now theirs to make or break. We’ll soon see how badly they want what they have.
~McQ
Tags: Bush administration, surge
Posted in Bruce McQuain, Freedom and Liberty, Iraq | 10 Comments »
June 30th, 2009 by MichaelW
It’s now official: only one party has the reins to power in Washington, DC:
The Minnesota Supreme Court on Tuesday unanimously ruled Al Franken the winner of last November’s Senate race, putting the former “Saturday Night Live” star on the brink of becoming a United States senator and Democrats on the cusp of holding a dominant 60-vote supermajority in the Senate.
In a unanimous 5-0 decision, the court upheld a three-judge panel’s April 14 ruling that Franken defeated Republican Norm Coleman in the race by 312 votes out of 2.9 million cast. The 32-page was remarkably decisive, picking apart and rejecting one Coleman legal claim after another.
[...]
If Franken is seated, Democrats would hold a 60-40 majority in the Senate, the largest the party has enjoyed in a generation. Sixty votes are needed to break filibusters, ensuring that if Democrats stay united they would be able to cleave the GOP’s last lever of power in Washington. A Franken “yes” vote on health reform, climate change legislation and Supreme Court nominee Sonia Sotomayor gives Senate Majority Leader Harry Reid (D-Nev.) even more of a margin for error on these major votes.
Democrats were already celebrating the result.
Gov. Tim Pawlenty already stated that he would sign the election certificate for Franken if directed to do so by the Supreme Court, so this is pretty much a done deal. Coleman has not indicated whether he would appeal the decision to the U.S. Supreme Court, and the Minnesota Republican Party doesn’t seem to sanguine about pushing further:
Even Minnestoa Republicans – highly disappointed by the ruling – weren’t ready to call for a federal legal challenge.
The Minnesota Republican Party issued a strongly worded statement, saying the ruling “wrongly disenfranchised thousands of Minnesotans who deserve to have their votes counted.”
But the chairman-elect of the party, Tony Sutton, made no mention of next steps, only saying, “As we move forward, our deeply flawed election system must be dramatically improved to ensure our state’s elections are fair, accurate and reliable.”
Assuming that Coleman doesn’t seek cert., or if he does that no stay of the decision is put into place, then Franken will be seated as early as next week. With a vetofilibuster-proof majority in the Senate, the Democrats won’t need to play parliamentary games like using reconciliation bills, or the like, and instead will simply shove legislation down the throats of the minority. So get ready for cap-and-trade, government health care, huge tax increases, and a host of other government programs that don’t need and can’t pay for.
The only downside for Democrats is that they can’t credibly blame the fiscal and economic woes on Bush anymore as they will have cornered the political market. I say “credibly” because they will continue to do so, and the media mostly won’t call them on it, but such claims will be laughably false. The real question is, how and when will this come back to haunt them?
UPDATE: Coleman concedes.
Tags: Al Franken, Minnesota, Norm Coleman
Posted in Congress, Democrats, Elections, Government, Michael Wade, Politics | 16 Comments »
June 30th, 2009 by Bruce McQuain
Paul Krugman came out today for “border adjustments” (tariffs) on goods from countries who aren’t participating in economy killing CO2 emissions control taxation.
His argument:
If you only impose restrictions on greenhouse gas emissions from domestic sources, you give consumers no incentive to avoid purchasing products that cause emissions in other countries; as a result, you have an inefficient outcome even from a world point of view. So border adjustments here are entirely legitimate in terms of basic economics.
Actually they’re “entirely legitimate” if you swallow the premise Krugman is pushing here, namely that CO2 is a “pollutant” and its restriction is a “legitimate” reason for imposing taxes on both your own economy and the goods coming from another economy which doesn’t agree with the premise. And, of course, this ignores the probable reaction countries hit with this tariff might have.
Krugman then attempts to justify such a “border adjustment” by claiming such a move is probably legal under “international law”:
The WTO has looked at the issue, and suggests that carbon tariffs may be viewed the same way as border adjustments associated with value-added taxes. It has long been accepted that a VAT is essentially a sales tax — a tax on consumers — which for administrative reasons is collected from producers. Because it’s essentially a tax on consumers, it’s legal, and also economically efficient, to collect it on imported goods as well as domestic production; it’s a matter of leveling the playing field, not protectionism.
And the same would be true of carbon tariffs.
What he sort of dances around when he claims this will “level the playing field” is all products, regardless of their origin, will see dramatically increased pricing. The point of the tax is to hopefully steer consumers to domestically produced products which are produced under government approved conditions rather than those from countries like China and India which aren’t playing the game the US wants them to play. Not only will the consumer here be asked to pay for the CO2 offsets imposed on domestic industry, but they will have to pay for offsets for foreign producers as well when the VAT cost is passed on in the price of the goods.
The thinking, obviously, is that if prices are the same, US consumers will buy US goods instead of, say, Chinese goods. The problem, of course, is much of what we consume isn’t made here anymore. So the result would be the US consumer would end up paying higher prices for goods produced in China with no change in behavior by China.
Additionally, China will view this as a protectionist measure, whether the WTO thinks it is “legal” or not. China will simply claim that the US, as a rich country and large “polluter”, should be doing more than they are doing in terms of emissions control, and impose its own “WTO legal” VAT in response. Same with any other country targeted by the US for a tariff.
This is, frankly, an invitation to a trade war. Krugman can wrap his protectionist argument in whatever legality he’d like, but the fact remains most countries effected will view it as an attempt to limit trade and react accordingly. And, of course, by Krugman’s own admission, it is you who will be paying the tariff cost for China and India if this is ever passed into law.
~McQ
Tags: China, India, Paul Krugman, tariff, VAT
Posted in Bruce McQuain, Economics, Economy, Policy | 8 Comments »
June 30th, 2009 by Bruce McQuain
It appears there is a problem with directly replying to a comment, i.e. if you left click on reply, it doesn’t thread it under the comment you are replying too.
I have no idea why. We recently upgraded to a newer version of WP and it may be a bug in that.
However, there is a workaround that Billy Hollis noted in the comment section of one of the posts. If you will left click right click [edited by Billy] on “Reply” and open a new tab, the reply you leave will be threaded with the comment.
Sorry for the inconvenience, but we do have a work around until we figure it out.
Posted in Admin, Blogging | 2 Comments »
June 30th, 2009 by Billy Hollis
I have a professional colleague in Honduras who wrote many of us a message yesterday, pleading for help getting the word out about the true situation as he sees it. I don’t know if it’s prudent to give his name at this point.
I requested permission to repost that message here, and he readily agreed. So this is written by a Honduran, directly addressing the rest of world and appealing for us to understand the situation there and take action appropriately:
I seek your advice. I have to find the best way to make all governments, especially the world leaders, understand what is happening in Honduras. I’m gathering IT friends and developers to brainstorm on this and hopefully save our country from terror.
This alias is not political [He refers to the mailing list on which he posted this message] so I won’t write in those terms. But can say that the great majority of my country celebrated the forced departure of our Ex President. He and Hugo Chavez did the best they could to divide this nation, making us fight against each other, but in the end, they made us more united and more aware of what Democracy really is, and embrace it. They’ve done us a favor actually.
Just so you know what happened in one line: Our Ex President was trying to repeat what Hugo Chavez has achieved in four other countries by controlling the national media, bribing top officials and threatening citizens. He wanted to illegally change our constitution so that he could create a one and only Party, do away with national media, change the way referendums are carried and be reelected indefinitely by these false referendums.
If you ask why we voted for him as President in the first place? Well, he presented himself as a normal candidate in opposition to corruption. We basically voted (me included) for him, because we were against the other guy. Little did we know that he would start insulting the USA (country where most of us have family and friends) and befriending all its enemies. He took a hard, hard left. With Hugo Chavez’s money, he bought three TV channels and a News Paper that is delivered “free of charge” to every citizen’s door step. You get 24X7 news on how “Pinky and the Brain” plan to take over the world. His own Party ousted him a few months after being elected President.
You need to know that all of the Churches (all the brands), the Teachers Union, Commerce Chambers, Worker Unions, The Congress, the Supreme Court, the Police, the Armed Forces, everyone has celebrated his ousting. Every single person I know (that did not work directly for him) (rich or poor) is very happy with the actions taken and the new temporary President that we have until November’s elections.
To sum it up we all just had it with this guy and are happy he’s gone. Unfortunately, what I see on the world news is astonishing to us. All Presidents back him up and want him reinstated. Hugo Chavez has troops from Venezuela lined up on our Nicaraguan border. Are we going into war for something that we all wanted as country to stop? Hugo Chavez knows that he has to act soon before the media and world start to see what really happened here. So we have to get the message out as fast as possible.
When I requested permission to repost, this was his response:
Dear Billy,
I’m sorry it took this long to get back to you. We’ve been having outages of Internet ever since the 7.1 earthquake that hit a couple of weeks ago. There are many reasons why it was so urgent for us to get rid of this man. He disregarded the whole country for the sake of Hugo Chavez’s interest. Bridges fell down, schools and houses broke down, etc, during the Earthquake. Even before that the roads and hospitals are destroyed by total lack of maintenance, etc, etc. We are losing jobs to economy crisis. Becoming a communist (Marxist) country to make Hugo happy is the furthest thing on our minds. Our real government had to take extreme measures (which we applaud) to oust this person.
I also need to add that our Ex President did not submit a yearly budget to the Congress as our Constitution demands every year. He was hoping to suffocate the Congress and Supreme Court by withholding funds. It is calculated that he spent more than three years budget into his campaign to be reelected (strong prohibited by the Constitution and named as treason). The only way that amount of funds availability is possible is by Hugo Chavez’s oil money. But he never reported any of it to anyone. How can the world expect us to carry a fair trial for this man when he has more cash than several neighboring countries together. Kicking him out of the country was the only way. If this was the 70’s, he would be dead. But like all modern terrorists, they rely on our respect for Human Rights; But that has a limit also.
So yes, by all means, post and repost as much as you can, please. Tomorrow I plan to go around taking pictures and video of the city so you can add them if you wish. I greatly appreciate the support I’m getting from several RD’s. [He refers to a program of Microsoft-oriented software developers.] We are very nervous, scared actually. We know very well that we are right and the media and the Presidents of other countries are wrong and uninformed. To me CNN is the USA’s worst enemy. It’s become ours too.[Emphasis mine]
If he is successful in getting pictures and video, I’ll post them. In the meantime, this corroborates the position set out by McQ in his previous two posts, maintaining that Obama’s response has been… well, let’s euphemistically say “unimpressive”, though my own opinion is that it demonstrates that Obama doesn’t seem to place much value on freedom, here or anywhere else. And don’t get me started on our media.
I wish the Hondurans good fortune in getting through this political crisis. I trust my colleague’s account, and I will be guided by it in my own opinions. You may judge whether you agree.
Posted in Billy Hollis, Foreign Affairs, Freedom and Liberty | 7 Comments »
June 29th, 2009 by Bruce McQuain
But not Iran.
Hmmm. And even saying anything about Iran could be considered “meddling” in the internal affairs of another country, per the Obama administration, but apparently working actively within Honduras to stop what it characterizes as a “military coup” isn’t meddling.
Confusing foreign policy.
An interesting aspect of the Honduran “coup”, per Fausta is:
-Tuesday last week the Honduran Congress, led by members of his own party, passed a law preventing the holding of referendums or plebiscites 180 days before or after general elections.
- The Honduran Congress, led by members of his own party, named a commission to investigate Zelaya. The Commission found (my translation: If you quote it, please credit me and link to this post)
Zelaya acted against the mandates of legal and electoral laws, the Public Ministry, the National Congress, the Attorney General, and other institutions of the State, which had declared the poll illegal.
Additionally, the court weighed in:
Indeed, Honduras’ La Prensa states that (My translation: If you use this, please credit me and link to this post)
An official statement of the Supreme Court of Justice explained that the Armed Forces acted under lawful grounds when detaining the President of the Republic, and by decommissioning the materials to be used on the illegal poll which aimed to bring forth Executive Power against a judicial order.
Other sources verified that the president of the Congress, Roberto Micheletti, will assume the presidency of the republic in a few hours.
…
Honduran president Manuel Zelaya was detained this morning by the military in compliance with an order of the courts of law.
I’ve also seen a report that the new president, Roberto Micheletti, is of the same party as Zelaya.
As I said this morning I’m not a Honduran Constitutional expert – but our Constitutional expert-in-chief seems to have it all figured out. I think the “why” should be obvious:
Analysts said quick criticism of the coup by Obama and Clinton on Sunday pleased Latin American countries bitter about the long history of U.S. intervention in the region.
Despite Obama’s claim that this would set a “terrible precedent”, the State Department still hasn’t yet made a determination that an actual “military coup” has actually taken place:
Despite Obama’s comments, Secretary of State Hillary Clinton said the administration was not formally designating the ouster as a military coup for now.
Such a designation could force the U.S. leader to cut off most aid to Honduras. Under U.S. legislation, no aid — other than for the promotion of democracy — may be provided to a country whose elected head of government has been toppled in a military coup.
“We do think that this has evolved into a coup,” Clinton told reporters, adding the administration was “withholding” that determination for now.
The stated reason is they want to leave room for negotiations with “the goal of restoring democratic order in Honduras”.
What isn’t clear, however, is whether or not what happened wasn’t a result of “democratic order” and legal. For instance:
Jason Steck, writing at Real Clear World Blog, explains
what is happening in Honduras may be an example of a coup that is not only legal, but mandatory
because, in Honduras’s case, the military has been endowed with a role in maintaining democratic governance; this time their task was to delivery Zelaya safely out of office and into the airplane to Costa Rica.
If this all ends up being constituitonally legal, it will be interesting to see how Obama backs off his previous statements or whether, instead, he continues to characterize the arrest of Zelaya as a “coup” to play to the leftist crowd now “pleased” with his initial reaction.
Regardless, I’m less than impressed with Obama’s reaction to world events in Iran, North Korea and now Honduras.
~McQ
Tags: Fausta, Hillary Clinton, Honduras, Manuel Zelaya, Roberto Micheletti
Posted in Bruce McQuain, Foreign Affairs, Iran, North Korea, Obama Administration | 20 Comments »
June 29th, 2009 by Bruce McQuain
From Twitter a minute ago:
NYT NEWS ALERT: Supreme Court Rules for White Firefighters in Affirmative Action Case
This could give new legs to the opposition of Sotomayor’s nomination.
Again, developing …
UPDATE: The Washington Post confirms.
New Haven was wrong to scrap a promotion exam because no African-Americans and only two Hispanic firefighters were likely to be made lieutenants or captains based on the results, the court said Monday in a 5-4 decision. The city said that it had acted to avoid a lawsuit from minorities.
The ruling could alter employment practices nationwide, potentially limiting the circumstances in which employers can be held liable for decisions when there is no evidence of intentional discrimination against minorities.
I’d say that’s a fairly significant ruling and certainly the opposite of what Sotomayor held. Of course, if Sotomayor was on the court right now (and hadn’t had to recuse herself for hearing the case in a lower court) she wouldn’t have made any difference since David Souter, the justice she’s slated to replace, voted in the minority.
More here.
~McQ
Tags: Sotomayor
Posted in Bruce McQuain, Constitution, SCOTUS | 8 Comments »
June 29th, 2009 by Bruce McQuain
It seems what has happened in Honduras is being characterized by most as a “military coup”. However Fausta, who has been following it all very closely, seems not to be sure that is the case. Instead she and some others are characterizing it as the military enforcing the orders of the Supreme Court and Congress.
Not being a Honduran constitutional expert or even really knowing whether that is legally permissible under their constitution, I’ll leave it to others to decide what the action really is. However, from Fausta, some background info that will get you into the picture. It is all about a referendum which President Manuel Zelaya wanted to hold concerning his term in office which is constitutionally limited to one term. Zelaya wanted to be able to serve another and decided a referendum would do to make that happen. The Supreme Court of Honduras declared such a referendum illegal. Zelaya essentially told them to pound sand (a very Jacksonian reaction):
Background on the referendum, which Zelaya insisted on in spite of it having been declared unlawful:
* When the armed forces refused to distribute the ballots, Zelaya fired the chief of the armed forces, Gen. Romeo Vásquez, and the defense minister, the head of the army and the air force resigned in protest.
* Yesterday the Supreme Court ordered by a 5-0 vote that Vásquez be reinstated.
* Honduras’s Supreme Electoral Tribunal ordered authorities to pick up all the ballots and electoral material, which were held by the country’s air force.
* The country’s Attorney General requested yesterday that Congress oust Zelaya.
* The courts have declared the referendum unlawful. Last Tuesday the Congress passed a law preventing the holding of referendums or plebiscites 180 days before or after general elections. Congress has also named a commission to investigate Zelaya.
This is the first coup in Honduras since 1982 when a democratically elected civilian government came to power .
So the question remains, was the military acting on its own or under the orders of some other constitutional body that had the legal right to order the removal of the president? It may turn out that both sides acted unconstitutionally and illegally. However it should be noted that the Honduran Attorney General had weighed in on the situation:
The attorney general had already made clear that the referendum was illegal, and he further announced that he would prosecute anyone involved in carrying it out.
So it is conceivable that the military was acting under the AG’s orders.
What Zelaya was trying to bypass is this provision in the Honduran Constitution:
Title VII, with two chapters, outlines the process of amending the constitution and sets forth the principle of constitutional inviolability. The constitution may be amended by the National Congress after a two-thirds vote of all its members in two consecutive regular annual sessions.
Apparently, at the moment, all is calm and quiet in Honduras. The Congress has accepted a “letter of resignation” from Zelaya which Zelaya (who is in Costa Rica) says he didn’t write. The Congress has also voted to make their head the new president.
Reaction has been swift and negative. The OAS said it would refuse to recognize the new government. President Obama said he was “deeply concerned” and called on Hondurans “to respect democratic norms, the rule of law and the tenets of the Inter-American Democratic charter”, whatever that means.
It certainly seems that at least one party was trying to circumvent the “rule of law” in this case. Whether the others who removed him were remains to be seen. But the Obama administration is sticking by its one-note foreign policy song:
“We think this can be resolved through dialogue,” said the senior administration official.
Meanwhile, Hugo Chavez, with all his new Russian military equipment is rattling sabers in Venezuela as he sees a part of his Bolivarian Socialist revolution go astray. Of course the first knee-jerk reaction is to blame it on the US. In fact the Obama administration claims to have tried to stop the “coup” when it learned about it (some might see that as “meddling” in the “internal affairs of another country”).
Venezuelan President Hugo Chavez, blamed “the Yankee empire”, and threatened military action should the Venezuelan ambassador to Honduras be attacked; President Evo Morales of Bolivia described Mr Zelaya’s removal as “an assault on democracy”.
Of course both Chavez and Morales have stagemanaged similar assaults on their own Constitutions and managed to pull them off to their advantage.
As Drudge would say – developing …
~McQ
Tags: Costa Rica, Fausta, Honduras, Manuel Zelaya, OAS
Posted in Bruce McQuain, Constitution, Foreign Affairs, Freedom and Liberty, Hugo Chavez, Obama Administration, Venezuela | 22 Comments »
June 28th, 2009 by Dale Franks
In this podcast, Bruce, Michael, and Dale discuss the situations in Honduras and Iran, and the cap-and-trade energy bill.
The direct link to the podcast can be found here.

The intro and outro music is Vena Cava by 50 Foot Wave, and is available for free download here.
As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2007, they can be accessed through the RSS Archive Feed.
Tags: cap-and-trade, Honduras, Iran
Posted in Bruce McQuain, Dale Franks, Michael Wade, Podcasting | No Comments »
June 28th, 2009 by Bruce McQuain
Call in number: (718) 664-9614
Yes, friends, it is a call-in show, so do call in.
Subject(s): Cap-and-trade, health care, Iran/Honduras
Tags: cap-and-trade, Honduras
Posted in Admin, Energy, Environment, Health Care, Iran | No Comments »
June 28th, 2009 by Bruce McQuain
Bumped to the top for obvious reasons.
Here’s a perfect example of why Paul Krugman should stick with writing about economics:
One of the favorite arguments of climate-change deniers is “but it was warmer in the late 90s.” In fact, the odds are good that I’ll get that argument from George Will on This Weak tomorrow. I basically know the answer: temperature is a noisy time series, so if you pick and choose your dates over a short time span you can usually make whatever case you want. That’s why you need to look at longer trends and do some statistical analysis. But I thought that it would be a good thing to look at the data myself.
So here’s the data he chose:

Anyone know what happened prior to 1850?
A little thing called the “Little Ice Age”, remember? And before that? Yup, the Medieval Warm Period. So what did that look like?

So what are the two things you notice right away? Well, one is “cycles”. In fact, if you go back even further you’ll see the same sorts of cycles repeated through out our planet’s history. Looking at data from 1850 in the context of climate change history is to use an eyeblink of data for comparison (coming out of the depths of a centuries long planetary cold spell). It is a classic misuse of limited data in an attempt to support a point of view. It certainly can’t be called “science”.
And secondly, our temperature now isn’t much different than in the 1000’s (not to mention there is much debate as to whether the temperature measurements of today are even accurate), with a very small population relative to today and with no industry, no burning of fossil fuel, and no worries about “green house gasses”. How in the world can that be?
Meteorologist Augie Auer said it best:
“It is time to attack the myth of global warming,” he said.
Water vapour was responsible for 95 per cent of the greenhouse effect, an effect which was vital to keep the world warm, he explained.
“If we didn’t have the greenhouse effect the planet would be at minus 18 deg C but because we do have the greenhouse effect it is plus 15 deg C, all the time.”
The other greenhouse gases: carbon dioxide, methane, nitrogen dioxide, and various others including CFCs, contributed only five per cent of the effect, carbon dioxide being by far the greatest contributor at 3.6 per cent.
However, carbon dioxide as a result of man’s activities was only 3.2 per cent of that, hence only 0.12 per cent of the greenhouse gases in total. Human-related methane, nitrogen dioxide and CFCs etc made similarly minuscule contributions to the effect: 0.066, 0.047, and 0.046 per cent respectively.
“That ought to be the end of the argument, there and then,” he said.
“We couldn’t do it (change the climate) even if we wanted to because water vapour dominates.”
Yet the Greens continued to use phrases such as “The planet is groaning under the weight of CO2” and Government policies were about to hit industries such as farming, he warned.
“The Greens are really going to go after you because you put out 49 per cent of the countries’ emissions. Does anybody ask 49 per cent of what? Does anybody know how small that number is?
“It’s become a witch-hunt; a Salem witch-hunt,” he said.
And Krugman seems to be trying out for head inquisitor. There are the numbers Mr. Krugman. Why not try crunching those instead of selectively picking the data that supports your point of view. You wouldn’t stand for that in the economic world. Why should we put up with it from you when you talk about science?
UPDATE: Yeah, no inflammatory language here:
And as I watched the deniers make their arguments, I couldn’t help thinking that I was watching a form of treason — treason against the planet.
Quite an argument, isn’t it – “disagree with me and the “consensus” and you’re committing “treason against the planet?”
You have to wonder, would disagreeing over economic policy be “treason against the economy” in Krugman’s wacky world? How desperate are you when you have to resort to name calling like “traitor” over a policy dispute?
UPDATE II: Irony alert Ezra Klein referring to the Krugman chart above which begins at the end of the period known as the “Little Ice Age”:
Paul Krugman has a nice response to the variant of global warming denialism favored by the statistically illiterate.
Who is “statistically illiterate” here, Mr. Klein?
~McQ
Tags: Augie Auer, Ezra Klein, Little Ice Age, Medieval Warm Period, Paul Krugman
Posted in Bruce McQuain, Environment, Media | 48 Comments »
June 28th, 2009 by Bruce McQuain
Over the years, one of the purposes the sunday news shows have come to serve is a venue from which to launch political trail balloons and see how well they float.
Some get shot down immediately. Some take flak but survive. And other sail right on through with very little notice. David Axelrod appeared on “This Week” with George Stephanopoulos and launched one concerning taxes and health care. Axelrod first said that Obama still believes taxing health benefits is not the way to pay for health care (although during the ABC informercial, he essentially said that if it happened, it would be a compromise (and obviously not a show stopper for him)).
Stephanopoulos pushed a little harder on funding through taxation:
I pressed Axelrod on whether Obama will draw a line in the sand and veto any bill that funds health care reform with tax hikes for people making under $250,000 a year — despite a pledge Barack Obama made during the 2008 presidential campaign not to raise taxes on the poor and middle-class.
“One of the problems we’ve had in this town is that people draw lines in the sand and they stop talking to each other. And you don’t get anything done. That’s not the way the president approaches us. He is very cognizant of protecting people — middle class people, hard-working people who are trying to get along in a very difficult economy. And he will continue to represent them in these talks,” Axelrod said.
“But they’re also dealing with punishing health care costs, and that’s something that we have to deal with.”
Classic. He could have simply said “we’re open to compromise and if that’s what it takes to pay for it, then yes, we’ll raise taxes on the middle class in a New York minute.”
But instead he had to do the “we’re here to protect the middle class, but …” and then tell us how they really weren’t there to protect them in this particular case.
So to those of you who believed Obama when he said that 95% of Americans won’t see their taxes raised by a single dime – well, that’s no longer necessarily the case – if you let this trial balloon float away unimpeded (not that it will matter really – if they pass health care it has to be paid for somehow and there is no possible way only the richest 5% are enough to pay for that boondoggle).
~McQ
Tags: "This Week", David Axelrod, George Stephanopolus
Posted in Bruce McQuain, Health Care, Obama Administration, Taxation | 7 Comments »
June 27th, 2009 by Bruce McQuain
From a commenter on Arnold Kling’s Atlantic site, one of the more succinct summaries of what Waxman-Markey really is:
‘Cap and Tax’ simply provides more opportunities for political favoritism — creating arbitrary credits to be awarded to pet projects while getting others to pay for the favors. Meanwhile the energy expense baseline of the entire economy goes up. Waxman-Markey are gushing about how historic this bill is. That it is — it puts Smoot-Hawley in second place as potentially the most misguided economic legislation of the last 100 years.
Take the time to read Kling’s post as well.
If you’re wondering who will be paying “for the favors”, Conor Clarke at the Atlantic has been kind enough to put that in chart form using the CBO’s data on tax distribution:

But remember you 95% out there – your taxes won’t go up by a single dime – not one dime. Your fuel, electric, transportation, food and just about anything else you can imagine? Dimes won’t even begin to describe the increases you’ll see.
~McQ
Tags: Arnold Kling, cap-and-trade, Conor Clark, The Atlantic
Posted in Bruce McQuain, Congress, Democrats, Economy, Energy, Environment, Freedom and Liberty, Quote of the day | 2 Comments »
June 27th, 2009 by Bruce McQuain
Michele Catalano starts her Pajama’s Media piece with this sentence:
There are more people who know what’s going on in the lives of Jon and Kate than what’s going on in Iran.
The “why” has never been more obvious to me than the two day “Michael Jackson is dead” orgy the television media has put us through. And of course, this isn’t the first time we’ve seen this obsessive and non-stop coverage over a celebrity death.
But more importantly, Catalano points to a couple in a “reality” show who, quite frankly I had never heard of two weeks ago, as being a greater priority in people’s lives than what is happening in the world. Iran is reality. Jon and Kate? Well I have a confession to make – I simply don’t watch much TV. And so they definitely aren’t a reality to me.
Catalano’s point though, is well taken. I’ve been trying to follow the events in Iran closely for the past two weeks and during that time I’ve had “Jon and Kate” forced on me. Horror of horrors I learn they’re “breaking up”. Time was spent telling me how that has all come about. Anchors shook their head and told me how “sad” that was.
Meanwhile I had to learn of Neda’s death on the internet among the political blogs.
Then Michael Jackson dies. And here I am again trying to get word on a bill being voted on in the House that will radically change the lives of most Americans, see a little of the debate and find out the particulars of the legislation. Instead I have to watch the 15th viewing of the “Thriller” video, hear some yahoo tell me how much Michael Jackson meant to him, and listen to “reporters” speculate about his death and spread rumors about its cause.
Is there any question of why “more people … know what’s going on in the lives of Jon and Kate than what’s going on in Iran?”
But here’s the most important question:
Does the media decide what to feed us or do we tell it what we want to be fed?
~McQ
Tags: Jon and Kate, Michael Jackson
Posted in Bruce McQuain, Culture, Media | 18 Comments »
June 27th, 2009 by Bruce McQuain
Melanie Phillips points to an interesting contradiction:
As the world watched events unfold in Iran, Obama’s double standard over Israel was illuminated in flashing neon lights. How come he’s saying it is wrong for him to tell the Iranians what to do, people asked themselves, when he is dictating to Israel its policy on settlements?
It’s an excellent question. So what is the policy of the United States qua Barack Obama – strict hands off concerning the “internal affairs” of a country, or, in the case of Israel, what can only be considered “meddling” in internal affairs?
Just wondering …
~McQ
Tags: Israel, Melanie Phillips
Posted in Bruce McQuain, Foreign Affairs, Iran, Obama Administration, Policy | 15 Comments »
June 27th, 2009 by Bruce McQuain
No “gold plated” care for you – unless you’re in a union.
Yes, friends, it’s payback time in the health care legislation world. Bloomberg reports:
The U.S. Senate proposal to impose taxes for the first time on “gold-plated” health plans may bypass generous employee benefits negotiated by unions.
Senate Finance Committee Chairman Max Baucus, the chief congressional advocate of taxing some employer-provided benefits to help pay for an overhaul of the U.S. health system, says any change should exempt perks secured in existing collective- bargaining agreements, which can be in place for as long as five years.
The exception, which could make the proposal more politically palatable to Democrats from heavily unionized states such as Michigan, is adding controversy to an already contentious debate. It would shield the 12.4 percent of American workers who belong to unions from being taxed while exposing some other middle-income workers to the levy.
This is how they manage to get at your health care plan. Baucus wants to tax any health care benefit that is more costly than those provided federal employees. Those costs are about $4,200 for individuals and $13,000 for families. The claim is they again want to go after the “rich” who have “gold plated” plans. And the example in the Bloomberg article is the $40,543 in health benefits paid to Lloyd Blankfein, chief executive of New York-based Goldman Sachs Group Inc., the fifth largest U.S. bank.
Of course that threshold will also affect people much lower on the financial totem pole than Lloyd Blankfein. For example:
It can also affect companies such as Henderson, Nevada- based Zappos.com, where workers’ $11 per hour pay is supplemented by employer-paid health insurance plans worth about $7,500.
So immediately you have an $11 an hour employee liable for $495 at 15% of the difference. But remember, your taxes won’t go up by a dime. Not a single dime.
Why the desire to exempt unions? Well it gets a favored constituency off their back, is a measure of payback for their support and union members can then enjoy their “gold plated” coverage while $11 an hour workers pay the freight. Don’t believe unions have gold plated coverage. Try this example:
Sandra Carter, a retired Pacific Bell Telephone Co. technician from Stockton, California, said her health benefits, worth about $12,000 per year, were negotiated by the Communications Workers of America. She is unmarried with no children, meaning her individual coverage exceeds benefits paid to federal workers by about $7,800. If that amount were taxed at the 15 percent marginal rate, she would owe $1,170.
“I can’t afford the taxes I pay now,” said Carter, who said she suffers from diabetes. “Why should I get taxed on a benefit that keeps me a functioning person?”
Gee Ms Carter, why should anyone? Why is it any business of the government to limit the coverage to $4,200 and tax the rest. Who is Max Baucus, or anyone, to arbitrarily set the insurance limit at $4,200 for individuals and $13,000 for families and punish those who have better plans through taxation?
I would guess, however, Ms Carter is fine with unions being exempted and also fine with others being taxed in her stead.
Most unions, of course, see themselves as the exceptions deserving of such exemptions:
Anna Burger, secretary-treasurer of the Service Employees International Union, said in an interview that workers have often traded salary increases for better benefits in agreements.
Taxes “shouldn’t be taken from the backs of workers who have bargained away wages and other things for their benefits over the years,” Burger said.
But it is ok if others who’ve negotiated the same sort of exchange privately get nailed, eh Ms Burger? It’s not the principle, it’s the exception which is important here apparently.
To their credit, some unions are actually standing on principle:
“Either way, we are against a tax on health-care benefits in whatever form it takes,” said Jacob Hay, spokesman for the Laborers’ International Union of North America. The union represents 500,000 workers, largely in the construction industry.
Special interest democracy – political payback – so blatant now that you don’t even have to wonder if it is being done. Democrats are shameless in their pursuit of it. If you’re in a favored group, your ship has come in.
~McQ
Tags: Max Baucus, unions
Posted in Bruce McQuain, Congress, Democrats, Freedom and Liberty, Health Care, Taxation | 3 Comments »
June 26th, 2009 by Bruce McQuain
The vote was 219 to 212.
4 votes on the other side and it goes down to defeat.
So, who are these people:
Mary Bono Mack (Calif.), Mike Castle, Mark Steven Kirk (Ill.), Leonard Lance (NJ), Frank LoBiondo (NJ), John McHugh (NY), Dave Reichert (Washington), Chris Smith (NJ)
They’re the Republicans who voted for the bill and assured its passage.
You may want to find some way to thank them for passing one of the largest and most regressive tax increases in US history.
~McQ
Tags: cap-and-trade, Waxman-Markey
Posted in Bruce McQuain, Congress, Democrats, Energy, Environment, Freedom and Liberty, Government, Republicans, Taxation | 13 Comments »
June 26th, 2009 by Bruce McQuain
What were the charges?
Expanded executive power. Trampled on rights. Ruled by executive order. Creeping authoritarianism.
Does that about cover most of what the left tried to hang on the Bush presidency? And who was the answer to all those problems?
Well feast your eyes:
The Obama administration, fearing a battle with Congress that could stall plans to close the U.S. prison at Guantanamo Bay, is drafting an executive order that would reassert presidential authority to incarcerate terrorism suspects indefinitely, according to three senior government officials with knowledge of White House deliberations.
Such an order would embrace claims by former president George W. Bush that certain people can be detained without trial for long periods under the laws of war. Obama advisers are concerned that bypassing Congress could place the president on weaker footing before the courts and anger key supporters, the officials said.
So it was never about principle, was it? It was always about politics.
Hope and change.
~McQ
[HT: tkc]
Tags: executive orders, George Bush, Guantanamo
Posted in Bruce McQuain, Constitution, Freedom and Liberty, Legal Affairs, Obama Administration, Politics, rights | 7 Comments »
June 26th, 2009 by Bruce McQuain
For new readers the title is that for which the shortened “QandO” stands. This is the second in a series of questions and observations.
- In the “you can’t make this up” department, China will block the sale of Hummer for “environmental concerns”. I guess that’s their nod to the rest of the world after flatly refusing cut CO2 emissions in the future.
- Ezra Klein is suddenly for smaller government, specifically the elimination of the Agriculture Committee. Of course the only reason he’d like to see it given the deep 6 is because it has, in Klein’s opinion, badly weakened cap-and-trade by extracting “a truly mind-boggling array of tax breaks, exemptions, and straight subsidies”. I guess Klein would like to temporarily make government smaller to make it larger.
- Yes, Michael Jackson is dead – but for heaven sake, do we have to devote every minute of the news day to running “Thriller” vid and spreading rumors about the possible cause of his death? Is this what “news” organizations have become?
- Apparently we’re still stalking the North Korean ship enroute to either Singapore or Burma. For those who are waiting for us to confront it and board it, that’s not going to happen. The “tough” UN resolution only provides for boarding if the North Koreans agree. And, while we can demand that they then go to the nearest port for inspection, the North Koreans can refuse that as well. The plan, it seems, is to convince the refueling port the NoKos pull into to refuse to refuel the ship. Then, when the NoKo ship runs out of fuel, put it under tow and then inspect it. As I understand it – they can then inspect it legitimately. Amazing.
- Waxman-Markey, aka cap-and-trade, survived an earlier test vote that moved the bill to the floor for a 5pm vote. As I recall the margin was 5 votes. It is a job destroyer in the middle of a recession. The Center for Data Analysis of the Heritage Foundation figures it will cost 50,000 jobs in the transportation equipment sector alone. Their data for other sectors is available here.
- House liberals have staked out a bit of ground on the health care bill saying they will not vote for it if it doesn’t include a public option – period. That is actually good news as the public option does seem to be in trouble. Any bill showing up without it will most likely not get the 80 members of the Congressional Progressive Caucus to vote for it. Add in the Republicans and the Blue Dogs, and it may be in very serious trouble without just the sticker shock of 1 to 3 trillion dollars of cost.
- Mark Sanford? He should resign. The affair is between he and his family. He should resign because he was derelict in his duty and he misappropriated government funds to pay for his trip to Argentina. Kinda like Bill Clinton should have resigned, not for the affair, but for lying under oath to a grand jury and attempting to obstruct justice.
~McQ
Tags: Congressional Progressive Caucus, Ezra Klein, Heritage Foundation, Mark Sanford, Michael Jackson, Waxman-Markey
Posted in Blogging, Bruce McQuain, Congress, Foreign Affairs, Freedom and Liberty, Government, Health Care, Law Of Unintended Consequences, North Korea, Obama Administration, The Left | 4 Comments »