Free Markets, Free People

Bruce McQuain

GM = Government Motors

I thought I’d quickly steal that title from one of our commenters (Brown). It pretty much encapsulates the latest and rather significant change as apparently the CEO of General Motors stepped down at the behest of the White House. Apparently Obama is now in the car business.

The two following paragraphs are significant:

“We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement,” the company said.

The surprise announcement about the classically iconic American corporation is perhaps the most vivid sign yet of the tectonic change in the relationship between business and government in this era of subsidies and bailouts.

The folks who run the post office and Amtrack are now stepping in to run the auto industry. That’s not to say the auto industry has done so well itself, but there’s a market result for poor leadership, and it isn’t to prop up the industry and let government run it.

I’m sorry but this pain avoidance scheme which is costing us trillions of dollars we don’t have has now spun off into the absurd. If you think the auto industry is ailing now, just wait until the “Administration” engages in “restructuring the US auto industry”.

~McQ

Saying Goodbye To A Warrior (UPDATE)

I‘m headed to a rather somber ocassion, where the family of a young paratrooper who served with the 173rd Airborne Brigade Combat Team will be presented his posthumous award of the Silver Star.  It will be awarded in the high school auditorium from which he graduated.

I did aSomeone You Should Know segement about the fight in Wanat, Afghanistan where 9 soldiers lost their life.  But they gave much better than they got, killing well over 100 Taliban and al Qaeda.

The young man being honored today is Cpl. Joseph Ayers.  This from the script of the SYSK delivered on WRKO 680am, Boston on Pundit Review Radio:

At another spot on the observation post, Cpl. Jonathan Ayers laid down continuous fire from an M-240 machine gun, despite drawing huge volumes of small-arms and RPG fire from the enemy.

The enemy put everything they had into knocking out that machine gun. At least 5 or 6 RPGs exploded all around him and he never even flinched. Those that saw what he did said, “He just kept rocking on that 240.”

The survivors said it was the most heroic thing they’d ever seen. Like a movie. They feel he saved their lives. He kept the enemy from getting anywhere near COP. And Ayers kept firing until he was shot and killed.

I’ll have more on this later.

UPDATE: Well that was one heck of a great ceremony.  The auditorium was packed.  The Patriot Guard lined the room.  Old members of the 173rd Airborne Brigade (from my era) were on hand.  So were Cpl Ayer’s comrades.  His mother had decreed (in a motherly way) that this ceremony not be a memorial service but, instead, a celebration of his life.   And that’s precisely what it was.   Speaker after speaker talked about Jonathan, his life prior to the Army, the fact that he was the commander of the JROTC unit at Shiloh High School and that the military seemed always to be in his future.

His former company commander, who will receive the Silver Star in a ceremony at Ft. Benning tomorrow, talked about the fact that had it not been for Jon Ayers, he wouldn’t have the honor of  standing on that stage addressing Ayer’s family.  His mother, Susan, talked about the son she’d lost but was so proud of the man he’d become.  And his father brought the house down with a poignant yet humorous remembrance of his son. After the presentation of the Silver Star to the family, the family was the first to leave and then other relatives. When the soldiers who had served with Jon rose to walk out, the entire auditorium stood and applauded them. 16 Sky Soldiers from Chosen Company of the 1st of the 503 Airborne Infantry battalion lost their lives during their tour in Afghanistan. Over 60 of them were awarded Purple Hearts. 14 Silver Stars. One Distinguished Service Cross was awarded to a member of the company and one is pending. And one soldier from the company has been nominated for the Medal of Honor.

It was an inspiring afternoon – one remembering a young man who gave his all for a unit, in which his mother said, he was so proud to serve he found it difficult to express the full depth of his pride. Today they honored him.

Darkened Cities For ‘Enlightened’ People

Oh, good – another meaningless, feel-good effort in which to participate (or not):

EARTH HOUR is about to sweep around the world in what the United Nations is calling “the largest demonstration of public concern about climate change ever attempted”.

The event, which started in Sydney two years ago, will see well over 3000 cities and towns in more than 90 countries switch off their lights for an hour this year. Hundreds of millions of people are expected to take part.

From the international dateline, Earth Hour starts in New Zealand’s Chatham Islands this afternoon and will conclude in Honolulu tomorrow night (Sydney time).

In between, tens of millions of houses and public buildings will dim their lights to call for an effective global deal to cut greenhouse gas emissions. More than 10,000 street parties are planned. Sydney’s turn comes at 8.30 tonight.

Sounds like a lot of fun – partying in the dark I mean.

Frankly I like James Taranto’s idea from yesterday better:

Reader, if you are against global-warming hysteria, high taxes, socialized medicine and a weak foreign policy, Sunday is your day. Show how you feel about the issues by turning on your lights in the evening and leaving them on until you go to bed. If you go out for a drive after dark, make sure you turn your headlights on too.

Granted, the EarthHour people have a head start on us. They started planning this months ago, whereas we’re giving you all of 48 hours notice. Yet we think the outlook is bright for this effort. Tell your friends, tell them to tell their friends, and so on, and we’ll bet millions of people across the country will turn their lights on Sunday night.

If no one will listen to the silent majority, let’s at least make sure they see us.

Indeed.

~McQ

The Leadership Gap (update)

I continue to be amazed that seemingly smart people are just suddenly figuring this out. “Blinders” doesn’t begin to describe what it must have taken to ignore Obama’s lack of experience and to hope the fact that he’d never displayed a scintilla of leadership in anything he’d ever done would somehow rectify itself prior to his assumption of office.

The latest to drop the blinders is the Economist, which heartily endorsed Obama’s election:

His performance has been weaker than those who endorsed his candidacy, including this newspaper, had hoped. Many of his strongest supporters—liberal columnists, prominent donors, Democratic Party stalwarts—have started to question him. As for those not so beholden, polls show that independent voters again prefer Republicans to Democrats, a startling reversal of fortune in just a few weeks. Mr Obama’s once-celestial approval ratings are about where George Bush’s were at this stage in his awful presidency. Despite his resounding electoral victory, his solid majorities in both chambers of Congress and the obvious goodwill of the bulk of the electorate, Mr Obama has seemed curiously feeble.

You can still read read the disbelief in that paragraph. Question for the Economist – what leadership position of any importance has the man ever held that would indicate he had what it took to lead as President?

And why didn’t you explore that question, its answer and ramifications before you jumped on the Hope and Change bandwagon?

Journalism 101.

UPDATE: Ed Morrisey at Hot Air has thoughts on the article as well.

 

~McQ

Quote Of The Day

From Jim Harper of CATO speaking of the Obama on-line “Townhall meeting” yesterday:

President Obama promised to make his administration the most open and transparent in history, and taking questions from the public kind of looks like that. But it also kind of looks like gimmicky, a canned publicity stunt, rather than true openness in government.

Real transparency would include fulfilling his campaign promise to post bills online for five days before signing them. The President has now signed ten bills into law and not subjected any of them to that five-day public review.

Ten bills.  That’s zero for ten in the transparancy department.

Yup, we’re just in too much of a hurry to really be transparent, apparently.  And the press is doing such a great job of keeping Mr. Transparancy’s feet to the fire, isn’t it?

~McQ

The Geithner Plan And Why It Isn’t What It Is Reported To Be

That is, why it isn’t the solution it is touted to be. Jeffrey Sachs of the Financial Times:

The Geithner-Summers plan, officially called the public/private investment programme, is a thinly veiled attempt to transfer up to hundreds of billions of dollars of US taxpayer funds to the commercial banks, by buying toxic assets from the banks at far above their market value. It is dressed up as a market transaction but that is a fig-leaf, since the government will put in 90 per cent or more of the funds and the “price discovery” process is not genuine. It is no surprise that stock market capitalisation of the banks has risen about 50 per cent from the lows of two weeks ago. Taxpayers are the losers, even as they stand on the sidelines cheering the rise of the stock market. It is their money fuelling the rally, yet the banks are the beneficiaries.

If you’ve been wondering why the stock market had a short rally upon its announcement, there’s your explanation. You need to read the whole thing as Sachs uses a simple example to explain his point. He concludes with:

Tim Geithner, Treasury secretary, and Lawrence Summers, director of the White House national economic council, suspect that they cannot go back to Congress to fund their plan and so are raiding the Federal Reserve, the Federal Deposit Insurance Corporation and the remaining Tarp funds, hoping that there will be little public understanding and little or no congressional scrutiny. This is an inappropriate institutional use of the Fed, the FDIC and the Tarp. Mr Geithner and Mr Summers should at the very least explain the true risks of large losses by the government under their plan. Then, a properly informed Congress and public could decide whether to adopt this plan or some better alternative.

But, of course, we’re just in too big of a hurry and the situation is too dire to actually discuss and debate the situation or do it properly through Congressional action. Instead we’ve been sold a bill of goods which, disguised as a way out, is simply a rip off of the taxpayer – again. As Jennifer Rubin notes:

So to avoid the overwhelming popular objection to perpetual bailouts and expenditures, the Obama administration will do this all “off budget” and with no hearings, Congressional debates, or votes. Not very transparent and quite imperious, when you get right down to it.

Yeah, not very “hopey changey” is it?

I’m warming more and more to my suggestion that government officials be compensated the same way they think CEOs should be compensated. If this ends up being a big loss to the taxpayer, Geithner and Summers should receive zero compensation for the outcome. And that would also go for anyone else in the administration or Congress who had a hand in implementing this plan.

~McQ

The Silence Is Deafening (update)

Doug Heye points out something of which I’m sure few people are aware:

The Democratic Senatorial Campaign Committee (DSCC) has apparently decided to keep $100K in contributions from Bernie Madoff, who faces up to 150 years in prison for swindling billions from the likes of Steven Spielberg, Elie Wiesel, Kevin Bacon and Kyra Sedgwick in a massive Ponzi scheme.

In campaigns, one side often calls on the other to return money for one reason or another. Sometimes it’s valid, sometimes not. Regardless, it’s Campaign 101. But when the contributor in question is the single biggest financial criminal in history, there can be no question that those illicit funds should not remain in campaign coffers.

[...]

Given the economic uncertainty our nation faces and that Madoff not only fleeced the rich and famous but major corporations such as HSBC — in other words, Madoff swindled all of us — the DSCC’s decision is shockingly tone-deaf.

No kidding. People all over have been fleeced by this guy, they’re looking all over for assets with which to recover some of the funds and pay back the investors and the DSCC is keeping the funds he sent them. Shocking.

What isn’t shocking, however, is what Heye notes next:

However, what’s almost equally surprising is the virtual silence from the media. During the Enron scandal, returning campaign money was a daily drumbeat, as were the news stories discussing Enron’s purported ties to President Bush. Now, when the Democratic Senate campaign vehicle makes the conscious decision to keep $100K in Madoff money, stolen just as if it came from a bank holdup, there’s little to no outrage.

Heye seems surprised and asks “why” this is receiving no coverage.

Most of the rest of us are just shaking our heads knowingly and are not at all surprised by that fact.

UPDATE: Commenter Linda Morgan provides a link from the Washington Times, apparently the only MSM outlet which carried the story, with some positive results:

One day after The Washington Times reported that a key Democratic fundraising group was holding onto $100,000 from disgraced financier Bernard Madoff, the Democratic Senatorial Campaign Committee decided to donate the money to his victims.

“We’re reviewing this internally, and decided to give the money to the trustee for distribution to the victims,” DSCC spokesman Eric Schultz told Roll Call on Thursday.

Given the fact the Madoff scandal is old enough that he’s been to trial, plead guilty and is awaiting sentencing, you have to wonder why it has taken this long for the DSCC to “review this internally”.

~McQ

Is There Anything These Boobs Won’t Try To Legislate Or Intrude Upon?

And yes, it’s another Republican:

Sen. Orrin Hatch, R-Utah, may be a skinny guy with a high voice. But he’s angrily setting out to tackle the biggest powers in college football, vowing to pound them until they reform the Bowl Championship Series.

He called them out Wednesday, as he and Sen. Herb Kohl, D-Wisc. — respectively the top Republican and Democrat on a Judiciary subcommittee on antitrust — released a list of topics that panel plans to consider this year.

A bit buried on Page 4 of an eight-page list, amid somewhat sleep-inducing reading on oil and railroad antitrust, is a nifty paragraph about the BCS.

“The BCS system leaves nearly half of all the teams in college football at a competitive disadvantage when it comes to qualifying for the millions of dollars paid out every year,” their joint statement says.

Then it drops its first unexpected bomb: “The subcommittee will hold hearings to investigate these issues.”

That is followed by a second: “Sen. Hatch will introduce legislation to rectify this situation.”

Hatch’s office did not comment about exactly what may be in the yet-to-be-written bill — including whether it might attempt to mandate a playoff system similar to that in college basketball, or simply mandate that all colleges be given a fair shot to play their way into a national championship.

no one is particularly happy with the BCS and how they rank colleges or the method of “playoff” they’ve come up with. However let me be very clear here. This is none of Congress’s business. None. Nada. Zip. Zero.

Sorry if BSU was 13-0 and wasn’t crowned national champs. But that’s life and the system that’s in place. Get over it and worry about the things which are important – like shrinking government instead of making it more intrusive.

I’m coming to the conclusion we should hold Congress to the same standard as concerns their pay as we held AIG about the bonuses.

If we did that, most of these yahoos would be flat broke or owning the Treasury money at the end of the year. That’s certainly one way to cut spending.

~McQ

 

[HT: Liberty Papers]

Proposed Taxes On Oil Producers Will Be Paid At The Pump

This is such a basic lesson I’m surprised it has to be repeated so often.  

The background:

Under pressure to narrow projected deficits, President Barack Obama’s 2010 budget proposal calls for raising more than $31 billion over the next decade by eliminating the oil and gas industry’s eligibility for various tax breaks.

When you’re thowing around 3.6 trillion dollar figures for budgets, someone is going to ask, “how are you going to pay for it?” A 3.6 trillion dollar budget certainly doesn’t answer, “by cutting spending” does it? So new sources of revenue have to be found. But in a consumer society who is the ultimate source of all revenue? If you answered, “the consumer” you get a gold star.

So revenue is the purported reason for the focus on oil companies. Additionally, they’re easy to demonize which makes for easy political pickings. That seems to be the modus operandi of this administration.
changing-hands-1
The propsoal:

The plan would slap companies with a new excise tax on production in the Gulf of Mexico worth $5.3 billion between 2010 and 2019, and repeal the industry’s eligibility for a manufacturing tax credit worth $13.3 billion in that period.

In an era in which the word “trillions” is uttered with abandonment, billions suddenly don’t seem like much do they? Unless of course you’re a middle or lower income family. Then trillions and billions are meaningless. It’s how far can you stretch the thousands of dollars you earn each year?

Well that $13 a week tax cut you’re contemplating will quickly disappear at the gas pump if Congress and the adminstration get their way. Fuel prices will rise at the pump and may rise rather dramatically. That’s because that approximately 20 billion you see above will most likely morph into about 400 billion cost to the oil companies during that period:

The industry says the final cost of Mr. Obama’s proposals on petroleum production could top $400 billion, once his plan to put a price on greenhouse-gas emissions is factored in.

The lie:

The Obama administration has generally justified its proposals by arguing that taxpayers deserve a better deal.

Yeah, I know, “lie” is a strong word. I’ve always considered it to be the knowing telling of a falsehood. And that’s precisely what this “justification” is. The “taxpayer” being talked about isn’t you in this scenario. It’s the government. You will be paying the passed through tax at the pump which the oil companies will then send to DC.209546302_54daa93f9b

For the seeming millionth time, corporations don’t pay taxes, they collect them and pass them on. Individuals pay taxes.

Last but not least – Raising taxes in recessionary times (not matter how indirect) is a recipe for economic disaster. Additionally such taxes in recessionary times may have the effect of driving jobs offshore where taxes and restrictions are less onerous and seeing oil companies produce less oil and natural gas domestically in a time when there is a growing and increasingly worrisome energy gap.

Not a very bright policy.

~McQ

If The Alternative Energy Types Think It Will Be Easy …

It won’t be. There’s nothing “sacred” about wind and solar, certainly nothing which is going to see environmentalists back off of their opposition to anything with despoils the vision they hold of how mother earth should be:

As David Myers scans the rocky slopes of this desert canyon, looking vainly past clumps of brittlebush for bighorn sheep, he imagines an enemy advancing across the crags.

That specter is of an army of mirrors, generators and transmission towers transforming Mojave Desert vistas like this one. While Whitewater Canyon is privately owned and protected, others that Mr. Myers, as head of the Wildlands Conservancy, has fought to preserve are not.

To his chagrin, some of Mr. Myers’s fellow environmentalists are helping power companies pinpoint the best sites for solar-power technology. The goal of his former allies is to combat climate change by harnessing the desert’s solar-rich terrain, reducing the region’s reliance on carbon-emitting fuels.

Mr. Myers is indignant. “How can you say you’re going to blade off hundreds of thousands of acres of earth to preserve the Earth?” he said.

As I’ve said before, if you think that these groups are going to let anyone carpet the Mojave Desert with solar panels and endanger its eco system, you haven’t been paying attention to what has been going on here for the last 50 years.

Terry Frewin, a local Sierra Club representative, said he had tough questions for state regulators. “Deserts don’t need to be sacrificed so that people in L.A. can keep heating their swimming pools,” Mr. Frewin said.

But that’s precisely what it will take for solar to make any appreciable difference, given the technology available today. The ironic thing is the movement to plus up solar is being driven by a Democratic administration and putting it into direct conflict with one of its more loyal constituencies.

It is also causing dissent within environmental organizations as well:

“It’s not enough to say no to things anymore,” said Carl Zichella, a Sierra Club expert on renewable power. “We have to say yes to the right thing.”

We’ll see who wins in the end and what the eventual political cost will be – but you can rest assured, there’ll be nothing easy about implementing solar and wind if environmentalists have any say.

~McQ