Free Markets, Free People

Daily Archives: June 25, 2010


Dale’s Observations For 2010-06-25

Democrats simply cannot keep their hands off my wallet, and Republicans can't keep their hands off my penis.

Ummm…I mean…you know. #

Note toTexas GOP: if I'm not physically harming the person or property of a non-consenting adult, hows about you STFU? Limited government? #

Looking over the Texas GOP platform, I'm utterly unsurprised to see that Republicans are just as totalitarian as Democrats. #

HCR Redux: Chris Dodd says we'll have to wait until it's implemented before we know how the FinReg law will work. Surprises are fun! #

Dem official in WI calls for AZ boycott, says immigration law might be understandable if AZ was a border state. # Moron http://bit.ly/axIJci #

The iPhone 4 can have its signal blocked by the user's hand. Not that the Apple cultists care, but that's bad design. http://bit.ly/bkMfHE #

Russia's Duma considers giving the FSB, formerly the KGB, more sweeping powers. That's worked out so well in the past. http://bit.ly/9dyTyz #

The six million dollar cat. http://bit.ly/ahYItk #

ICANN is set to approve the .xxx domain for porn, something that should have been done a decade ago. http://bit.ly/c28Hw7 #

The home-buying tax credit not only inflated home sales artificially, it inflated the amount of fraud and abuse. http://bit.ly/aDqORx #

Jurors weigh cop's word against 5 felons in police torture trial. Sadly,I assume the felons are telling the truth. http://bit.ly/ajTHqe #

1Q GDP revised down to 2.7%. Not only is this well below post-recession trends, it's below the normal, long-term 3%. http://bit.ly/d5v702 #

Pakistan will monitor/block web sites for blasphemy, to prevent fright or confusion among the populace. http://bit.ly/b0mz6v #


Why governments are dangerous

When government doesn’t want to pay a bill, you have little recourse except the courts in most law abiding countries.

In the dictatorship that is Venezuela, not only does the government not pay the bill, but it takes you means of livelihood to boot for daring to attempt to collect what you’re owed. Such is the fate of one American owned country which tried to collect on its debt.

Venezuela will nationalize a fleet of oil rigs belonging to U.S. company Helmerich and Payne, the latest takeover in a push to socialism as President Hugo Chavez struggles with lower oil output and a recession.

[...]

The 11 drilling rigs have been idled for months following a dispute over pending payments by the OPEC member’s state oil company PDVSA. Oil Minister Rafael Ramirez said on Wednesday the rigs, the Oklahoma-based company’s entire Venezuelan fleet, were being nationalized to bring them back into production.

The reason they weren’t presently in production is the Venezuelan government refuses to pay them for $49 million for past services.

Of course the government of Venezuela has devised an excuse for what would be grand theft in any other law abiding society:

Ramirez said companies that refused to put their rigs into production were part of a plan to weaken Chavez’s government,

“There is a group of drill owners that has refused to discuss tariffs and services with PDVSA and have preferred to keep this equipment stored for a year,” Ramirez told reporters in the oil producing state of Zulia. “That is the specific case with U.S. multinational Helmerich and Payne.”

Interestingly, we here have the opposite problem. Venezuela’s government is trying to get drilling rigs into production and has resorted to nationalized theft to do it.

We have a government trying to take drilling rigs out of production, and is prepared to ignore court rulings to the contrary and do so by executive fiat.

~McQ


Quote of the day – forget what I said the first time edition

Coinciding with and probably as a result of the McChrystal firing, a lot of questioning has been directed toward the Obama administration about its previously announced decision to begin the withdrawal of US troops from Afghanistan in 2011. That was originally announced by the President when he outlined his new strategy about a year ago. Since then, as administration officials have been questioned about the date, mixed messages have been the result. VP Joe Biden has said the date is “firm”. SecDef Robert Gates has said it would be based on “conditions on the ground”.

Critics have rightfully said that announcing a firm withdrawal date is a strategically self-defeating thing to do. It gives the enemy a finish line they simply have to survive long enough to make. It also isn’t great for the morale of those US soldiers there now fighting in this war.

So it was interesting to hear the president – who originally announced the withdrawal date for next year -deny it was what he said it was:

“We didn’t say we’d be switching off the lights and closing the door behind us,” Obama said. “We said we’d begin a transition phase that would allow the Afghan government to take more and more responsibility.”

Well that’s not exactly how it was interpreted then (light switching and door closing were certainly implied). Nor was that interpretation of the date then ever denied by the president or his staff – until now.

The announcement above is actually a change. White House spinmeisters will most likely characterize it as a “clarification”. But the bottom line is, the “firm” July 2011 withdrawal date announced by the president last year is much less “firm” with this “clarification”.

And, if I know my wars, the ANA and Afghan government are far from being ready to “transition” into taking “more and more responsibility”.

That, in fact, is why critics in the Senate are telling the president that the problem lies not with the military side of the house, but with the civilian/State Department (and other Departments) side of the house.

Until a credible and competent diplomatic staff is assembled in Kabul and is able to begin to do what was done in Iraq, there will be nothing to which to hand this “transition” off.

Yes, there’s corruption. Yes, we don’t like it. But Afghanistan isn’t the US and corruption and the like have been an integral part of their lifestyle for centuries. Is our goal to make them a mini-US, or to have them develop a functioning government and security apparatus that can hold the country and keep terrorists from basing there and threatening the US?

Two things to take from this – this is a mild presidential rebuke to the “this is a firm date” crowd (*cough* Biden et al *cough*). That may have further implications down the road. And it is also a case where strategic ambiguity – at least in this specific area – is a help and not a hindrance.

~McQ


How hungry are governments for tax revenue?

Hungry enough to tax minimum wage employees for their “free” (or reduced cost) restaurant meals in Michigan:

Although it may be “free,” that’s not stopping some legislators from attempting to tax it. State Rep. Mark Meadows, D-East Lansing, has introduced House Bill 6214, which would tax free meals employees get while working at restaurants and food establishments.

Can anyone think of a better example of a tax which would hit those that can afford it least? One of the few benefits of working what is usually a minimum wage job is the server or worker is allowed one free or reduced cost meal a day. When working for the wages the restaurant industry usually pays – especially in fast food establishments, that helps a bit.

Making them pay the sales tax on the meal probably won’t break them, but it is a direct tax on what Democrats always call “the working poor”. The party that contends they’re the champions of this class are taking a run at squeezing a few more pennies out of their pocket – at least in Michigan.

It also places another collection and book keeping demand on the business. That isn’t “free” either.

Michigan, of course, is a state in which government has essentially failed, is significantly in debt and is looking for any sort of revenue it can scare up.

What’s next, taxing the dead for the privilege of being buried in the state?

~McQ

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