Author Archive
Totalitarian Leftovers in Eastern Europe
The Berlin Wall fell 20 years ago. A hideous symbol of the suppression of liberty, it should remind us of the ever-present threat to our freedoms. Even two decades later the legacy of repression continues to afflict many people in Eastern Europe. For instance, those in countries formerly behind the Iron Curtain still struggle with the knowledge that their friends and neighbors routinely spied on them.
Stelian Tanase found out when he asked to see the thick file that Romania’s communist-era secret police had kept on him. The revelation nearly knocked the wind out of him: His closest pal was an informer who regularly told agents what Tanase was up to.
“In a way, I haven’t even recovered today,” said Tanase, a novelist who was placed under surveillance and had his home bugged during the late dictator Nicolae Ceausescu’s regime.
“He was the one person on Earth I had the most faith in,” he said. “And I never, ever suspected him.”
Twenty years ago this autumn, communism collapsed across Eastern Europe. But its dark legacy endures in the unanswered question of the files — whether letting the victims read them cleanses old wounds or rips open new ones.
Things have never been so bad here, obviously, but that gives us even more reason to jealously guard our liberties. Defend America we must, but we must never forget that it is a republic which we are defending.
In Canada You Need Wait-List Insurance!
Governments love to promise benefits. But politicians prefer not to have to raise the funds necessary to provide the promised services. The result for nationalized medical systems is political rationing … and long waiting lists. The Mackinac Institute, located in Michigan, has produced a series of videos on Canadians speaking about how their system works. The British Columbia Automobile Association even developed medical access, or wait list, insurance, before abandoning the program under pressure.
A Bankrupt FHA: It’s Only Money, Part XXVI
Think the bailouts are over? Think again! The Federal Housing Administration could become the next Fannie Mae.
Problems at the Federal Housing Administration, which guarantees mortgages with low down payments, are becoming so acute that some experts warn the agency might need a federal bailout.
Running questions about the F.H.A.’s future — underscored by interviews with policy makers, analysts and home buyers — came to the fore on Thursday on Capitol Hill. In testimony before a House subcommittee, the F.H.A. commissioner, David H. Stevens, assured lawmakers that his agency would not need a bailout and that it was managing its risks.
But he acknowledged that some 20 percent of F.H.A. loans insured last year — and as many as 24 percent of those from 2007 — faced serious problems including foreclosure, offering a preview of a forthcoming audit of the agency’s finances.
We’ve already spent about $13 trillion bailing out banks, financial institutions, automakers, insurance companies, and most everyone else. So what’s another few billion dollars among friends? As they say, it’s only money!
What to Do When Your Ally Is the Aggressor?
That’s what Washington should ask itself after the new European Union report on the Russo-Georgian war last year. The EU has affirmed what long seemed apparent to independent observers: America’s ally, the government of President Mikheil Saakashvili, started the conflict. Which means in supporting Saakashvili the Bush administration backed the aggressor.
Russia comes in for abundant criticism — after all, it took advantage of Saakashvili’s irresponsible aggressiveness to retaliate destructively. But on the essential point the EU blamed Tbilisi. Reports the Wall Street Journal:
In a statement, Ms. Tagliavini was blunt. “In the Mission’s view, it was Georgia which triggered off the war when it attacked Tskhinvali with heavy artillery on the night of 7 to 8 August 2008. …In particular, there was no massive Russian military invasion under way,” she said.
Washington’s support for the Georgian government probably encouraged Saakashvili to attempt the military conquest of South Ossetia, which had seceded with Russia’s assistance. After all, you are likely to take far greater risks if you believe the U.S. has your back. And if he was willing to start a war in expectation of U.S. military support against Moscow outside of NATO, imagine what he would do with his nation as a member of NATO.
Many Americans apparently believe that Russia is a paper tiger and would never challenge a U.S. security guarantee. But both World Wars I and II began in spite of alliance commitments. Deterrence failed. And it likely would have failed in the Caucasus even if Tbilisi had belonged to NATO. Russia’s border security is a vital interest to Moscow but largely irrelevant to America. Thus, Russia still would have had strong cause to act, while it still would have been in Washington’s interest to do nothing. The result likely would have been the same: a Georgian defeat, magnified by even greater humiliation of America and Europe, forced to stand by as their official ally was crushed.
The only worse result would have been the U.S. and “Old Europe” putting force behind their NATO commitment. We survived the Cold War without conflict between the major nuclear-armed powers. To risk a nuclear confrontation over a war started by an authoritarian nationalist contrary to American interests would be foolhardy beyond belief.
Georgia illustrates how carelessly collecting allies and passing out security guarantees is a prescription for insecurity and potential disaster. Americans should sympathize with the Georgian people, who have been ill-served by their own government as well as mistreated by the Russian government. But that’s no reason to risk war on Tbilisi’s behalf. Instead of continuing to expand NATO, Washington should begin the process of turning Europe’s security over to Europe.
Pakistan: More Aid, More Waste, More Fraud?
Pakistan long has tottered on the edge of being a failed state: created amidst a bloody partition from India, suffered under ineffective democratic rule and disastrous military rule, destabilized through military suppression of East Pakistan (now Bangladesh) by dominant West Pakistan, dismembered in a losing war with India, misgoverned by a corrupt and wastrel government, linked to the most extremist Afghan factions during the Soviet occupation, allied with the later Taliban regime, and now destabilized by the war in Afghanistan. Along the way the regime built nuclear weapons, turned a blind eye to A.Q. Khan’s proliferation market, suppressed democracy, tolerated religious persecution, elected Asif Ali “Mr. Ten Percent” Zardari as president, and wasted billions of dollars in foreign (and especially American) aid.
Still the aid continues to flow. But even the Obama administration has some concerns about ensuring that history does not repeat itself. Reports the New York Times:
As the United States prepares to triple its aid package to Pakistan — to a proposed $1.5 billion over the next year — Obama administration officials are debating how much of the assistance should go directly to a government that has been widely accused of corruption, American and Pakistani officials say. A procession of Obama administration economic experts have visited Islamabad, the capital, in recent weeks to try to ensure both that the money will not be wasted by the government and that it will be more effective in winning the good will of a public increasingly hostile to the United States, according to officials involved with the project.
…The overhaul of American assistance, led by the State Department, comes amid increased urgency about an economic crisis that is intensifying social unrest in Pakistan, and about the willingness of the government there to sustain its fight against a raging insurgency in the northwest. It follows an assessment within the Obama administration that the amount of nonmilitary aid to the country in the past few years was inadequate and favored American contractors rather than Pakistani recipients, according to several of the American officials involved.
Rather than pouring more good money after bad, the U.S. should lift tariff barriers on Pakistani goods. What the Pakistani people need is not more misnamed “foreign aid” funneled through corrupt and inefficient bureaucracies, but jobs. Trade, not aid, will help create real, productive work, rather than political patronage positions.
Pat Tillman Saw the Iraq War as Folly
Pat Tillman, who gave up a lucrative NFL career to join the Army after 9/11, was a true patriot: he wanted to defend America, not conduct social engineering overseas. That led him to oppose the Iraq war.
According to a new book, Tillman, who was killed by friendly fire in 2004 and hailed as an all-American hero by the former president, was disillusioned by Mr Bush and his administration’s “illegal and unjust” drive to war.
In Where Men Win Glory: The Odyssey of Pat Tillman, by Jon Krakauer, the author relates the strong views of Tillman – who gave up his NFL football career to serve his country – and his brother Kevin, who joined the same Rangers unit.
The war “struck them as an imperial folly that was doing long-term damage to US interests,” Krakauer claims.
“The brothers lamented how easy it had been for Bush, Cheney, and Rumsfeld to bully secretary of state Colin Powell, both the houses of Congress, and the majority of the American people into endorsing the invasion of Iraq.”
Tillman was a true citizen soldier. Not only did he leave private life to serve in the military after his nation was attacked, but he believed it was his responsibility to look beyond the self-serving rhetoric of politicians to judge the wisdom of the wars which they initiated. The rest of us should remember his skepticism when confronted with the willingness of politicians of both parties to continue sacrificing American lives in conflicts with little or no relevance to American security.
When Stimulus Is No Stimulus
The Obama administration has been touting its wasteful “stimulus” package as the answer to the recession. Now that Uncle Sam has started his spending binge, John Cogan, John Taylor, and Volker Wieland assess the result. Their conclusion: for all of the money spent, the effort wasn’t much of a stimulus.
They write in the Wall Street Journal:
Direct evidence of an impact by government spending can be found in 1.8 of the 5.4 percentage-point improvement from the first to second quarter of this year. However, more than half of this contribution was due to defense spending that was not part of the stimulus package. Of the entire $787 billion stimulus package, only $4.5 billion went to federal purchases and $17.7 billion to state and local purchases in the second quarter. The growth improvement in the second quarter must have been largely due to factors other than the stimulus package.
Incoming data will reveal more in coming months, but the data available so far tell us that the government transfers and rebates have not stimulated consumption at all, and that the resilience of the private sector following the fall 2008 panic not the fiscal stimulus program deserves the lion’s share of the credit for the impressive growth improvement from the first to the second quarter. As the economic recovery takes hold, it is important to continue assessing the role played by the stimulus package and other factors. These assessments can be a valuable guide to future policy makers in designing effective policy responses to economic downturns.
If policymakers really want to stimulate the economy, they will stop prodigiously wasting money, unfairly redistributing people’s earnings, making the tax system ever more complex, and imposing job-killing regulations. In other words, politicians will stop being politicians.
So Much for Making Money on the Bailout
The federal government is unlikely to recoup all of the billions of dollars that it has invested in General Motors and Chrysler, according to a new congressional oversight report assessing the automakers’ rescue.
The report said that a $5.4 billion portion of the $10.5 billion owed by Chrysler is “highly unlikely” to be repaid, while full recovery of the $50 billion sunk into GM would require the company’s stock to reach unprecedented heights.
“Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount,” according to the report, which is scheduled to be released Wednesday.
Well, it’s only money. And with the taxpayers facing more than $100 trillion worth of unfunded liabilities, what’s a few more wasted dollars?!
Sticking Around Afghanistan Forever?
I’ll confess one of the arguments that I’ve never understood is the claim that the U.S. “abandoned” Afghanistan after aiding the Mujahadeen in the latter’s battle against the Soviet Union. Yet Secretary of Defense Robert Gates apparently is the latest proponent of this view.
Defense Secretary Robert M. Gates said in an interview broadcast this week that the United States would not repeat the mistake of abandoning Afghanistan, vowing that “both Afghanistan and Pakistan can count on us for the long term.”
Just what does he believe we should have done? Obviously, the Afghans didn’t want us to try to govern them. Any attempt to impose a regime on them through Kabul would have met the same resistance that defeated the Soviets. Backing a favored warlord or two would have just involved America in the ensuing conflict.
Nor would carpet-bombing Afghanistan with dollar bills starting in 1989 after the Soviets withdrew have led to enlightened, liberal Western governance and social transformation. Humanitarian aid sounds good, but as we’ve (re)discovered recently, building schools doesn’t get you far if there’s little or no security and kids are afraid to attend. And a half century of foreign experience has demonstrated that recipients almost always take the money and do what they want — principally maintaining power by rewarding friends and punishing enemies. The likelihood of the U.S doing any better in tribal Afghanistan as its varied peoples shifted from resisting outsiders to fighting each other is a fantasy.
The best thing the U.S. government could do for the long-term is get out of the way. Washington has eliminated al-Qaeda as an effective transnational terrorist force. The U.S. should leave nation-building to others, namely the Afghans and Pakistanis. Only Afghanistan and Pakistan can confront the overwhelming challenges facing both nations.
Reviving the First Amendment
The U.S. Supreme Court hears arguments this week in Citizens United v. Federal Election Commission. The case features the Federal Election Commission ruling that for the group Citizens United to run its documentary on Hillary Clinton would violate McCain-Feingold. The decision was a constitutional travesty, since this is precisely the sort of political speech that constitutes the core of the First Amendment.
Theodore B. Olson has given us a taste in the Wall Street Journal of the argument that he will be making before the Court tomorrow:
The idea that corporate and union speech is somehow inherently corrupting is nonsense. Most corporations are small businesses, and they have every right to speak out when a candidate threatens the welfare of their employees or shareholders.
Time after time the Supreme Court has recognized that corporations enjoy full First Amendment protections. One of the most revered First Amendment precedents is New York Times v. Sullivan (1964), which afforded publishers important constitutional safeguards in libel cases. Any decision that determines that corporations have less protection than individuals under the First Amendment would threaten the very institutions we depend upon to keep us informed. This may be why Citizens United is supported by such diverse allies as the ACLU, the U.S. Chamber of Commerce, the AFL-CIO, the National Rifle Association and the Reporters Committee for Freedom of the Press.
Persons of modest means often band together to speak through ideological corporations. That speech may not be silenced because of speculation that a few large entities might speak too loudly, or because some corporations may earn large profits. The First Amendment does not permit the government to handicap speakers based on their wealth, or ration speech in order somehow to equalize participation in public debate.
Tomorrow’s case is not about Citizens United. It is about the rights of all persons—individuals, associations, corporations and unions—to speak freely. And it is about our right to hear those voices and to judge for ourselves who has the soundest message.
China Moving Wrong Way on Internet Freedom
While the growth of the market in China has helped open up personal space and limit control of individual lives, the Beijing authorities still attempt to limit freedom of expression. The Internet continues to be a prime target.
News Web sites in China, complying with secret government orders, are requiring that new users log on under their true identities to post comments, a shift in policy that the country’s Internet users and media have fiercely opposed in the past.Until recently, users could weigh in on news items on many of the affected sites more anonymously, often without registering at all, though the sites were obligated to screen all posts, and the posts could still be traced via Internet protocol addresses.
But in early August, without notification of a change, news portals like Sina, Netease, Sohu and scores of other sites began asking unregistered users to sign in under their real names and identification numbers, said top editors at two of the major portals affected. A Sina staff member also confirmed the change.
The editors said the sites were putting into effect a confidential directive issued in late July by the State Council Information Office, one of the main government bodies responsible for supervising the Internet in China.
If the government of the People’s Republic of China hopes to become an increasingly important international power, it should begin trusting its people to take on greater responsibility in deciding their own affairs. The justifications offered for the Communist Party’s monopoly of power are only going to grow more threadbare and unsustainable over time.
The Coming FHA Bail-Out
The taxpayers continue to get hit for Uncle Sam’s profligate ways in guaranteeing and insuring loans to virtually anyone and everyone who wanted to buy a house. The financial fall-out continues, and this time it isn’t Fannie Mae and Freddie Mac. It is the Federal Housing Administration.
Reports the Wall Street Journal:
The Federal Housing Administration, hit by increasing mortgage-related losses, is in danger of seeing its reserves fall below the level demanded by Congress, according to government officials, in a development that could raise concerns about whether the agency needs a taxpayer bailout.
The rising losses at the FHA, part of the U.S. Department of Housing and Urban Development, come as the agency has rapidly increased its role in guaranteeing loans in an attempt to stabilize the housing market.
It isn’t clear how the rising losses may affect home buyers. Options for the agency could include politically unpalatable choices, such as asking for taxpayer funds to boost reserves or increasing the premiums borrowers pay for the insurance offered by the agency. Agency officials say if there is a shortfall, they don’t have to do anything except report it to lawmakers. But some mortgage and housing analysts see trouble ahead. “They’re probably going to need a bailout at some point because they’re making loans in a riskier environment,” says Edward Pinto, a mortgage-industry consultant and former chief credit officer at Fannie Mae. “…I’ve never seen an entity successfully outrun a situation like this.”
Oh well, it’s only money. When you have a national debt of nearly $12 trillion, face another $10 trillion in red ink over the next decade, and have accumulated $107 trillion in unfunded liabilities for Medicare and Social Security alone, what’s a few billion dollars more?
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