Lies, Distortions, and Doublethink, Wall Street Journal, Dec. 10-13, 2016

Obama’s Middle East policies have confused friends (Israel) with enemies (Iran), destabilized the region, allowed the Russians to dominate the region, and brought into question America’s reliability as a strategic partner.

Washington no longer works because government bureaucrats have become too big to fail. Thus it’s encouraging that Trump has brought so many military leaders into his cabinet and management team

College speech codes are the greatest threat to the First Amendment.Colleges are the most closed-minded and biased institutions in America

America faces a cultural, moral, and social catastrophe. Dems–the so-called coalition of the ascendant– exacerbated this catastrophe by telling the old white working class “Here’s your disability check., now go take your opoids while we take over the country.”

Under Trump, the federal government will once again be on the side of the people. This is an odd position to take since, to all appearances, Trump’s cabinrt wants to more or less eliminate the federal government.

Green power and electric cars do nothing to improve the environment, and actually end up being more toxic than conventional forms of energy and transportation.

We need Putin to defeat ISIS, so we should ignore all the political assassinations he has ordered, as well as his lies and repression of free speech and free elections. As Donald Trump put is, “our country does plenty of killing also.” Political outrage has become passe since Trump’s election

The real authoritarian regime has been the “unelected and increasingly assertive class that populates the federal bureaucracy and substitutes rule by regulation for rule by law.” Federal agencies meddle in our lives, and we’d be better off without these social engineers imposing their values on the rest of us. This act of doublethink demonizes governmental regulation, thus making it impossible to enforce or interpret any laws. It also gets Trump off the hook for any of his authoritarian acts by calling government bureaucracies the root of all evil.

Stories of Russian hackers undermining our election are based on nothing more than anonymous leaks and innuendo.

Obama has entangled the US in financially ruinous international regulations, trade agreements, monetary policy goals and business taxation. This has lead to the weakest economic growth, the largest surge in government debt, the riskiest monetary expansion and the gravest deflationary pressures of the postwar era. This is part of a larger picture of centralized arbitrary financial powers, as explained in the Wall Street Journal by Michael Solon:
After the 2008 financial crisis, the G-7 massively expanded international coordination. The Financial Stability Forum was expanded into the Financial Stability Board, charged with integrating the monetary policy of central banks and supervising financial institutions such as banks, insurers and asset managers. The G-20 worked to protect government revenues through the Base Erosion and Profit Shifting project.

The result? Since 2007 the public debt of the G-7 nations, excluding sober Canada and Germany, has leapt to 130% of gross domestic product from 52%, according to each nation’s own reports. The EU’s monetary base has doubled, the U.K.’s is up 350%, and

The U.S. government has helped itself in debt financing, paying almost the same interest costs today as it did in 2007, despite almost tripling the publicly held debt. At the same time, bureaucrats won arbitrary and self-serving power over financial services. International regulators now override national and state laws without authority or input, turning domestic “independent regulators” into puppets. Political commissars embedded in banks own no shares yet veto board decisions. Money-market rules burden equities and public-purpose bonds, but favor federal debt. So do swap collateral rules and Basel rules on liquidity and capital.

The list goes on: Dodd-Frank’s Volcker rule threatens liquidity in market-making operations but exempts U.S. government securities. Housing regulators again proclaim that the government-sponsored enterprises Fannie Mae and Freddie Mac have a “duty to serve” low-income buyers by underwriting higher risk mortgages. International regulators direct insurers to invest in public infrastructure, proclaiming the profitability of these projects when experience demonstrates otherwise. Ubiquitous capital requirements force financial institutions to buy highly leveraged government debt that pays ultralow returns.

 

 Meanwhile, America’s punitive 35% corporate tax rate—the highest in the developed world—has discouraged U.S. firms from investing at home and sets a global tax floor to stabilize government revenues and foster government growth. The result is average U.S. GDP growth of only 2.1% since 2010—40% less than the administration’s projected 3.6%. According to my firm’s analysis of Congressional Budget Office projections, that dismal growth rate has taken a $9.5 trillion bite out of U.S. GDP since 2010—$29,400 on average for every American.

This charge of “Europeanizing” the economy is shorthand for removing all financial regulation (including liquidity requirements and “ubiquitous capital requirements”), justifying huge corporate tax cuts (as if tax policy isn’t “centralized, arbitrary authority”), discouraging mortgages to minorities, etc.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s