It would appear the first shots in what could develop into a global trade war have been fired:
Ordered by Congress to “buy American” when spending money from the $787 billion stimulus package, the town of Peru, Ind., stunned its Canadian supplier by rejecting sewage pumps made outside of Toronto. After a Navy official spotted Canadian pipe fittings in a construction project at Camp Pendleton, Calif., they were hauled out of the ground and replaced with American versions. In recent weeks, other Canadian manufacturers doing business with U.S. state and local governments say they have been besieged with requests to sign affidavits pledging that they will only supply materials made in the USA.
Outrage spread in Canada, with the Toronto Star last week bemoaning “a plague of protectionist measures in the U.S.” and Canadian companies openly fretting about having to shift jobs to the United States to meet made-in-the-USA requirements. This week, the Canadians fired back. A number of Ontario towns, with a collective population of nearly 500,000, retaliated with measures effectively barring U.S. companies from their municipal contracts — the first shot in a larger campaign that could shut U.S. companies out of billions of dollars worth of Canadian projects.
Reports are Canadian McDonalds are only using Canadian potatoes and calling them “freedom fries” – okay, I’m kidding. But this isn’t a kidding matter. You remember how, when caught with the “buy American” clause in the stimulus package, Obama tried to wave it away by saying it didn’t mean what it said and Congress promising to water it down?
Yeah, like many political promises made by Congress and the President, this one has now proven to be false.
The buy American provisions in the stimulus package, signed into law in February, were just the beginning. Last week, Obama unveiled a series of proposals aimed at increasing taxes by nearly $200 billion over the next decade on U.S. companies doing business abroad. At a White House event, Obama said the measures were designed to “close corporate loopholes” that permit companies to “pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, N.Y.”
Those sorts of measures are sure to speed the recovery. [/sarc]
Who is Obama lecturing here?
President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.
“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”
Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”
In the same article:
Earlier this week, the Obama administration revised its own budget estimates and raised the projected deficit for this year to a record $1.84 trillion, up 5 percent from the February estimate. The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. The White House Office of Management and Budget also projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.
Oh, and I loved this:
“Most of what is driving us into debt is health care, so we have to drive down costs,” he said.
Private health care isn’t borrowing from China is it? It is the government run side of things which is doing that. So after admitting government can’t manage cost effective health care the message is to hand them the rest of it as well?
Physician, heal thyself.
We have a special election here in California on Tuesday the 19th. We all have to go to our polling places, and decide whether Propositions 1A-1F–which were put on the ballot by the legislature–will be accepted. Of those propositions, 1F, which denies pay increases for elected officials if the state’s budget is all higgeldy-piggeldy–is the only one worth passing.
The rest of them amount to nothing more than allowing the legislature to loot the revenues from things like the lottery or child health programs, that the current law prevents them from touching. But the legislature wants to loot those programs, so that it can use the money in the general fund, instead. And, the general fund certainly needs something. At this rate, there is an excellent chance that California will be out of money by July. That means no money for teachers. No money for the DMV. Or the CHP, or CDF. The state will be, well, broke.
So, who do we blame for this, California?
Some people, Like Tom McClintock, the former Republican state senator and now Congressman, blame Arnold Schwarzenegger. Indeed, McClintock says that Schwarzenegger lied to the people of California when he ran against Gray Davis in the now-famous recall election. “He promised to stop the crazy deficit spending, cut up the credit cards, live within our means. And he did exactly the opposite. Schwarzenegger increased spending faster than we saw under Gray Davis.” McClintock, of course, was one of the people who ran against Schwarzenegger during that election.
(By the way, a side note to Rep. McClintock: Barring an act of divine providence, the sun will set in a blazing red sky to the east of Casablanca before you ever become governor. You may be a great guy, for all I know, and truly committed to reducing the size and scope of government. You may be popular in little the red-state enclave that makes up your Congressional district. But the electorate at large is not going to send someone with your crazy, helter-skelter eyes to the governor’s mansion.)
But should we blame Arnold for this mess? After all, he promised to reform the budget process, and ensure that California would never, ever be in the position that Gray Davis left us in, with a massive budget shortfall. And yet, he did. In fact, the animating issue of that recall election was Davis’ proposed increase to the car registration fee, which would make the annual regiatration fee average something like $600. Now, Schwarzenegger is supporting pretty much the same thing. So, it’s certain that the Governator has been a failure.
But, you know what? I don’t blame him, California. I blame you. Not every individual one of you, of course. By “you”, I mean the electorate as a whole. We aren’t in this position because Arnold changed his mind about reforming the budget process. He did, in fact, put sweeping changes to the process before you for approval in a series of ballot propositions in a special election.
And you told him to go f*ck himself.
Not only did you kill his reform plans by sizeable majorities, you then proceed to approve nearly every state bond issue that reared its ugly head. More money for schools? No problem. More money for the CDF? Let’s borrow it. More money for a shelter for developmentally challenged kittens? Might as well slap that on the card, too.
You listened when the Service Employees Union, the California Teachers Association, and the AFSCME union for government workers told you that if we attempted to reform the budget, disaster would ensue. We’d have to slash thousands of jobs for teachers, firemen and cops. Those of us who weren’t lucky enough to be murdered in our beds or die shrieking in horrific pain as our bodies were engulfed by flame would be able to look forward only to a life shameful unemployment due to our abject ignorance, cowering under the heel of our new Chinese overlords. You believed them they told you, “education spending is being cut, and our children are suffering,” despite the fact that, while the school age population has been declining, education spending since 2003 has risen from $45 billion to $54 billion. That’s a 20% increase, at a time when school enrollment was falling.
So, when the special interests or politicians asked to spend or borrow more money via ballot propositions, you told them to go right ahead. “Spend away, Sunshine! Let the good times roll!” And that’s exactly what we did. It seems never to have occured to you that the only way the government can spend money is to take it from the economy–that is to say, you.
So, now, the state’s got nothing left to spend. But, by your votes to increase spending, and to reject any reform of the budget process, that’s apparently what you wanted to happen.And since the state has no other way to get money, Sacramento is reaching onto your pocket yet again. So, when you get that $600 bill for vehicle registration renewal, see the prices of goods get higher as the sales tax goes up, and watch your state income tax bill rise, you need to just smile, suck it up, and be a man. After all, that’s exactly what you asked for.
Now you’re getting it.
Why not just wrap us all up in bubble wrap and bottle feed us?
“We like credit cards — they are valuable vehicles for many people,” said Senator Christopher J. Dodd, Democrat of Connecticut, the chairman of the Senate banking committee and author of the measure now being considered by the Senate. “It’s when these vehicles are being abused by the card issuers at the expense of the consumers that we must step in and change the rules.”
Doug Bandow provides the proper pithy reply to Sen. Dodd:
“Abused by the card issuers.” Of course. The very same card issuers who kidnapped people, forced consumers to apply for cards at gunpoint, and convinced merchants to refuse to accept checks or cash in order to force everyone to pull out “plastic.” The poor helpless consumers who had nothing to do with the fact that they wandered amidst America’s cathedrals of consumption buying wiz-bang electronic goods, furniture, CDs, clothes, and more. The stuff just magically showed up in their homes, with a charge being entered against them against their will. It’s all the card issuers’ fault!
Certainly card issuers are raising their rates arbitrarily to very high rates. And, as I did recently, card holders are calling them up and very politely saying “stuff it – and while you’re at it do it with my canceled card”.
Credit cards aren’t a ‘right’, and the fact that someone gets themselves into trouble with them doesn’t make them a ‘victim’ deserving of special legislation to “right a wrong”.
What in the world ever happened to individual responsibility and accepting the consequences for your actions?
Not everyone engaged in it is the sharpest knife in the drawer – and that goes for both sides.
In this particular case it’s the supply side, instead of the enforcement side, which gets the spotlight:
Officials say a suspected drug dealer who led police on a 90 mph chase in Indiana was arrested after he stopped suddenly at a Taco Bell parking lot.
Fort Wayne police Sgt. Mark Walters says 36-year-old Jermaine Askia Cooper told officers he “knew he was going to jail for a while” and wanted to get one last burrito.
Expect to see a variation on that theme in a Taco Bell commercial soon. At least Cooper was thinking outside the bun.
I don’t know if this is a bit of clever semantics or a real shift in policy, it’s just too early to tell, but if true, it may signal the beginning of a move toward sanity as it concerns drugs:
The Obama administration’s new drug czar says he wants to banish the idea that the U.S. is fighting “a war on drugs,” a move that would underscore a shift favoring treatment over incarceration in trying to reduce illicit drug use.
In his first interview since being confirmed to head the White House Office of National Drug Control Policy, Gil Kerlikowske said Wednesday the bellicose analogy was a barrier to dealing with the nation’s drug issues.
“Regardless of how you try to explain to people it’s a ‘war on drugs’ or a ‘war on a product,’ people see a war as a war on them,” he said. “We’re not at war with people in this country.”
But, of course, that’s precisely what a “war on drugs” has to be – a war on users, suppliers, growers, processors and the supporting network of people who get it from A to B. That’s precisely what we’ve been fighting from its inception and it is a war that’s being lost. It is time to consider the problem again and approach it with a different strategy. After all if input (I) + process(P) = output(O) and you never vary I or P, how can you expect O to ever be any different?
The Obama administration is likely to deal with drugs as a matter of public health rather than criminal justice alone, with treatment’s role growing relative to incarceration, Mr. Kerlikowske said.
Drugs are only a “criminal justice” problem because government chose prohibition – a policy that had been tried and failed miserably decades before – over a more rational and sane approach to drug use. There is no reason that a program that is much less of a threat to all of our freedoms and liberty shouldn’t be tried in the face of the miserable failure of the “war on drugs”. Perhaps then we’d see the violence inherent in the market created by government prohibition, as well as world record incarceration rates, subside dramatically. We can do this much, much better than we’re doing now.
Chris Cillizza notes:
President Barack Obama’s reversal on the release of detainee photos has angered the liberal left, a perceived poke in the eye that has left some questioning Obama’s commitment to progressive policies.
“Progressive policies”? Here’s the stated Obama reasoning:
Obama argued that “the publication of these photos would not add any additional benefit to our understanding of what was carried out in the past by a small number of individuals” and, in fact, the most likely effect would be “to further inflame anti-American opinion and to put our troops in greater danger.”
As the Clintons would say, this is “old news”. The situation in question has been sifted through with a fine-tooth comb and those who responsible are in jail. What in the world, other than what Obama points out, would be the effect of releasing old photos now? Is it “progressive policy” to do precisely what Obama wants to avoid?
I supported the release and the investigation into the abuses at Abu Ghraib. We covered them extensively here at QandO, and frankly, didn’t think those further up the chain of command got everything they deserved for letting the situation develop. Nothing new will be learned from the release of more photos. But what we do know is there are those who will use such a release for purposes that are not in our best interest and the end result will be endangering our troops in the field.
As you’ll see in Cillizza’s article, it is mostly the usual suspects in the left blogosphere who are whining and stamping their feet. Others outside that group apparently have much cooler heads and apparently better reasoning power:
“Politically, not reversing course could have had much worse consequences,” said Tad Devine, a Democratic media consultant. “I think it is the right move, and that makes it a smart move politically.”
And I, for one, applaud the decision.
My latest Examiner column about the usual – the law of unintended consequences.
These don’t really need much explanation. But they also should come as news to anyone who has paid even passing attention to the entitlement bomb over the years. From the Heritage Foundation:
More here if you can stomach them.
Seriously, you just can’t make stuff like this up.
–Democrats decry waterboarding as torture and claim it occurred because of lack of Congressional oversight (on the Republican watch).
–CIA releases 40 separate documents that chronicle key Democrats, to include Nancy Pelosi, were aware of the use of EIT, to include waterboarding, for years.
–Democrats claim the CIA is out to get them and that becomes the story.