Showing posts with label Barack Obama. Show all posts
Showing posts with label Barack Obama. Show all posts

Monday, October 19, 2015

Last Minute Meeting Between President and Jack Lew Scheduled?

For the record.

At 6:20 pm ET on Sunday October 18, I received a regular Daily Guidance regarding Treasury Secretary Jack Lew's schedule.

At 7:35 PM ET, I received this update:


U.S. Treasury Department Office of Public Affairs

**UPDATED**

DAILY TREASURY GUIDANCE FOR MONDAY, OCTOBER 19, 2015
                       
In the afternoon, Secretary Lew will meet with President Obama and Vice President Biden at the White House. This meeting is closed press. 

-RW

Wednesday, January 4, 2012

'Occupy Wall Street' Protest at Grand Central Station Against Obama Signing Indefinite Detention Law

On Tuesday, about a hundred Occupy Wall Street protesters rallied in New York City's Grand Central Terminal to call attention to the National Defense Authorization Act which was signed into law by President Barack Obama on New Year's eve.



Hat Tip to Iris Mack, who writes:

Thanks Mr. President. Happy New Year!

Sunday, January 1, 2012

The ACLU on the Indefinite Detention Act

The ACLU has issued a statement that in part reads:
President Obama signed the National Defense Authorization Act (NDAA) into law today. The statute contains a sweeping worldwide indefinite detention provision. While President Obama issued a signing statement saying he had “serious reservations” about the provisions, the statement only applies to how his administration would use the authorities granted by the NDAA, and would not affect how the law is interpreted by subsequent administrations. The White House had threatened to veto an earlier version of the NDAA, but reversed course shortly before Congress voted on the final bill...

We are incredibly disappointed that President Obama signed this new law even though his administration had already claimed overly broad detention authority in court,” said Romero. “Any hope that the Obama administration would roll back the constitutional excesses of George Bush in the war on terror was extinguished today. Thankfully, we have three branches of government, and the final word belongs to the Supreme Court, which has yet to rule on the scope of detention authority. But Congress and the president also have a role to play in cleaning up the mess they have created because no American citizen or anyone else should live in fear of this or any future president misusing the NDAA’s detention authority.”

The bill also contains provisions making it difficult to transfer suspects out of military detention, which prompted FBI Director Robert Mueller to testify that it could jeopardize criminal investigations. It also restricts the transfers of cleared detainees from the detention facility at Guantanamo Bay to foreign countries for resettlement or repatriation, making it more difficult to close Guantanamo, as President Obama pledged to do in one of his first acts in office.

Wednesday, December 28, 2011

Will the Strait of Hormuz Turn Into the Next Pearl Harbor?

Many revisionist historians believe that the United States goaded Japan into attacking Pearl Harbor.

The historian Percy Greaves believed that the attack on December 7, 1941 was neither unexpected nor unprovoked. As his wife, Betina Bien Greaves explained:
[Greaves] was the main counsel for the Republican minority on the Joint Congressional Committee that investigated Pearl Harbor from 1945 to 1946.He attended all its hearings, interviewed many Army, Navy, and Washington principals involved in the attack and in the investigations. He researched diplomatic documents, studied reports and accounts of the event published during the years that followed. He researched diplomatic documents, studied reports and accounts of the event published during the years that followed. This book [Pearl Harbor: The Seeds and Fruits of Infamy] is not about the attack itself. It is about never before presented pre-attack and post-attack events, from the Washington point of view. Without name-calling, innuendo, or slander, Greaves simply presents the pertinent, significant and relevant facts which led the Japanese to attack and the political administration to want to cover-up its involvement.
.Burton Folsom Jr and Anita Folsom write in their new book, FDR Goes to War:
Roosevelt...employed the devious strategy of hindering all oil exports to Japan by adding layers of red tape and freezing Japan's financial assets in what has been called "a silent embargo"...The effect, by late 1941, was a trickle of oil actually going to Japan from the United States.
Bottom line, the U.S. backed Japan into a corner. It was very unwise for the Japanese to attack Pearl Harbor, but the irritation that caused the attack can be clearly seen.

What does this have to do with Iran? Well, we have already frozen some of their assets. On June 29, 2011, the U.S. Department of the Treasury announced the designation of Iran’s national police for providing support to the Syrian regime. The chief and deputy chief of Iran’s national police was also sanctioned.. As a result of the action, U.S. persons are generally prohibited from engaging in transactions with the designees and any assets they may have subject to U.S. jurisdiction are frozen.

On December 20, 2011 U.S. Treasury announced the designation of 10 shipping and other companies and one individual based in Malta affiliated with the Islamic Republic of Iran Shipping Lines (IRISL), as entities facing international sanctions for involvement in" Iran’s efforts to advance its missile programs and transport military cargoes."

“As IRISL and its subsidiaries continue their deceptive efforts to escape the grasp of U.S. and international sanctions, we will continue to take action—as we are today—to expose the front companies, agents and managers working with IRISL and work to stop this illicit business,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.

On December 1, 2011 Cohen told the Senate Committee on Foreign Relations:
The Treasury Department’s increasingly powerful and disruptive sanctions are embedded in the dual-track strategy that the United States and our allies are pursuing to address Iran’s continued failure to meet its international obligations regarding its nuclear program. As Under Secretary Sherman describes in her testimony, the Obama Administration has presented Iran with a genuine opportunity for dialogue, creating a clear choice for Tehran. Iran’s leadership can choose to meet Iran’s international obligations, allowing Iran to deepen its economic and political integration with the world and achieve greater security and prosperity for the Iranian people. Or, Tehran can continue to flout its responsibilities and face even greater pressure and isolation...

Our broad-based pressure strategy is aimed at persuading Iran to change its course and to make clear to Iran the consequences of its continued intransigent behavior. Among the most important elements of this strategy are targeted financial measures designed to disrupt Iran’s illicit activity and to protect the international financial system from Iran’s abuse. We have focused our efforts on exposing Iranian entities’ illicit and deceptive activities, an approach that has garnered support among foreign governments and led them to take similar actions, enhancing substantially the impact of our actions. Because these actions have highlighted the pervasive nature of Iran’s illicit and deceptive conduct and the reputational risks associated with Iran-related business, the private sector around the world has taken notice and has often taken voluntary steps beyond their strict legal obligations, further amplifying government actions.
So what is the big deal? The United States is about to  up the ante and  dramatically financially isolate Iran. I am talking about the U.S. significantly cutting off Iran's access to oil revenues.

The U.S. Congress just passed a bill that President Obama appears ready to sign that, if fully implemented, could substantially reduce Iran’s oil revenue.

In other words, the U.S. is backing Iran into a corner. The bill could impose penalties on foreign firms that do business with Iran's central bank. Since those that import Iranian oil use the Iranian central bank for the transactions, it would likely cut off that method of Iran selling oil.

Iran is reacting as you would expect most cornered governments would act. Iran’s first vice president Mohammad Reza Rahimid said that Iran could shut down the critical shipping lanes through the Strait of Hormuz in the Gulf, if foreign sanctions are imposed on its oil exports.

The Strait of Hormuz is very important. About 33% of seaborne oil shipments (17% of world oil) go through the Strait of Hormuz. A blocked Strait would force tankers to take longer, more expensive routes that would most assuredly drive oil prices higher.

The thinking has always been that Iran wouldn't shut down the Strait of Hormuz because they use it for their own export of oil. Indeed, in an EPJ Daily Alert in November 2010, I reported:
This afternoon I attended a meeting where the speaker was Capitan Jeffrey Kline. Kline is the Program Director, Maritime Defense and Security Research Programs, Naval Postgraduate School. He is an Adjunct Professor at the Naval War College where he teaches, "Joint Analysis for the Warfare Commander"...Kline...pointed out that it might not be in Iran's interest to close the strait since Iran ships its oil through the Strait.
But, if the United States makes it impossible for Iran to sell its oil, then a key factor that would stop Iran from blocking the strait would be removed.

Does Iran have the capability to block the Strait of Hormuz? I also put that question to Captain Kline. Here's how I reported it in the EPJ Daily Alert:
I thought I would ask Kline, who might have a pretty damn good idea,if the Strait could be closed by Iran. His answer was it could. When I asked him how long it would take, he said 3 or 4 days for Iran to position ships and lay mines. He did say that the blockade could eventually be broken, but it would depend upon international co-operation and that it would take "some time". He said that Iran has missiles onshore aimed at the strait that would have to be taken out,and that Iran had other sophisticated equipment in the area including drones that could listen in on ship communications. He said ship mine sweeping can also get "very tricky".
According to AP:
The [Iranian] navy is in the midst of a 10-day drill in international waters near the strategic oil route. The exercises began Saturday and involve submarines, missile drills, torpedoes and drones. The war games cover a 1,250-mile (2,000-kilometer) stretch of sea off the Strait of Hormuz, northern parts of the Indian Ocean and into the Gulf of Aden near the entrance to the Red Sea as a show of strength and could bring Iranian ships into proximity with U.S. Navy vessels in the area.
Bizarrely, the U.S. has warned Iran that it will not tolerate any disruption of naval traffic through the Strait of Hormuz, that's like stealing a bully's wallet and telling him to shut up and deal with it.

It may not have made any strategic sense for Japan to attack Pearl Harbor, but sometimes you push and push and you get a reaction. The U.S. got a reaction out of Japan. It was Pearl Harbor. The legislation that President Obama is about to sign is a spit in the face of Iran, if it is used to shutdown Iran's ability to sell oil. It may get a reaction out of Iran: The blocking of the Strait of Hormuz.

This is a very high stakes game. No one knows how it will play out. Governments are generally run by mad men, and it is mad men that will decide the next move here.

Monday, December 26, 2011

Bernanke Christmas Gift to Obama: Surging Poll Numbers

According to the latest Gallup tracking poll, more Americans approve of the job that President Obama is doing than disapprove for the first time since this summer, reports Politico.

The latest Gallup survey shows that 47 percent of Americans now say they approve of the way that President Obama is handling his job. This is a 5 percent improvement since the Dec. 16-18 Gallup survey and marks the first time the President's numbers have been in positive territory since July.

With economic numbers beginning to trend higher because of Bernanke money printing, more are becoming satisfied with the way the President is "running" the country. BUT, price inflation will not be far behind. Indeed, the price for a barrel of West Texas Intermediate oil is likely only a day or so away from breaking above $100 per barrel.


Will voters have improving Fed manipulated economic data or rising gasoline prices on their mind when they vote in November 2012? Will Obama impose some kind of price controls on the country in the late summer of 2012 to show he is "battling" inflation?

Thursday, December 1, 2011

The Union Boss, who Visited Obama Regularly, Speaks

In early 2009, then-Service Employees International Union President Andrew Stern visited the White House more often, 22 times, than any other person who had to log in, according to White House.

Stern, who has left the SEIU, is today out with an op-ed in the WSJ dissing free markets and hailing the centrally planned segments of China's economy.

He writes in an article titled, China's Superior Economic Model:
Last month, the China Daily quoted Orville Schell, who directs the Center on U.S.-China Relations at the Asia Society, as saying: "I think we have come to realize the ability to plan is exactly what is missing in America."...As Andy Grove so presciently articulated in the July 1, 2010, issue of Businessweek, the economies of China, Singapore, Germany, Brazil and India have demonstrated "that a plan for job creation must be the number-one objective of state economic policy; and that the government must play a strategic role in setting the priorities and arraying the forces of organization necessary to achieve this goal."

The conservative-preferred, free-market fundamentalist, shareholder-only model—so successful in the 20th century—is being thrown onto the trash heap of history in the 21st century.
What does Stern want to replace free markets with? Central planning, of course:
Team USA's results—a jobless decade, 30 years of flat median wages, a trade deficit, a shrinking middle class and phenomenal gains in wealth but only for the top 1%—are pathetic.

This should motivate leaders to rethink, rather than double down on an empirically failing free-market extremism. As painful and humbling as it may be, America needs to do what a once-dominant business or sports team would do when the tide turns: study the ingredients of its competitors' success.
This is rich coming from a former union chief, since it is the union demand for higher minimum wage laws that is behind so much unemployment among unskilled youth. Yet, he blames the unemployment on "failing free-market extremism"!

What is this Chinese success that we should study? Stern tells us:
[In China],our delegation witnessed China's people-oriented development in Chongqing, a city of 32 million in Western China, which is led by an aggressive and popular Communist Party leader—Bo Xilai. A skyline of cranes are building roughly 1.5 million square feet of usable floor space daily—including, our delegation was told, 700,000 units of public housing annually.

Meanwhile, the Chinese government can boast that it has established in Western China an economic zone for cloud computing and automotive and aerospace production resulting in 12.5% annual growth and 49% growth in annual tax revenue, with wages rising more than 10% a year.

For those of us who love this country and believe America has every asset it needs to remain the No. 1 economic engine of the world, it is troubling that we have no plan—and substitute a demonization of government and worship of the free market at a historical moment that requires a rethinking of both those beliefs.

America needs to embrace a plan for growth and innovation, with a streamlined government as a partner with the private sector. Economic revolutions require institutions to change and maybe make history, because if they stick to the status quo they soon become history. Our great country, which sparked and wants to lead this global revolution, needs a forward looking, long-term economic plan.
Does Stern have any clue? China is on the edge of one of the greatest economic collapses in the history of mankind. The 700,000 units of public housing that are being constructed are a fraud. They are mostly of poor quality and vacant. In fact, some reports indicate that there are 60 million vacant apartments in China!! Yes, 60 million!!! Even Vice-President Joe Biden stated the vacancies are in the 30 to 50 million range. Further, there are empty and near empty train stations and airports, of poor quality, throughout the country that serve little purpose than as a propaganda machine for the supposed growth created by the planning authority.

As for the pay increases of 10%, all indications are that price inflation is in the range of 15% plus. Some pay raise.

This is the model that Stern is hailing. It's an absurd model. Think of it as a central planned economy designed by Dali, with small pockets of free market activity.,

Stern has absolutely no clue what the hell is going on in China. Yet, he has no problem hailing China's Dali-style central planning while modifying his mention of the free market with derisive adjectives such as fundamentalist, extremism, empirically failing,unquestioned truism and worship.

Stern's column shows us he is ignorant about basic supply and demand economics. Markets clear. There wouldn't be any unemployment problem in the US if markets were allowed to clear by eliminating minimum wage laws and if we didn't pay people for 99 weeks unemployment "insurance" not to work.

The column also shows that Stern has never grasped what Mises and Hayek taught us, that central planning as an economic system will be a failure because it distorts an economy and has no price signalling mechanism. Thus, the multi-millions of vacant apartments in China should come as no surprise.

Finally, Stern spouts off "facts" about China as though he really understands the country. He should really keep his mouth shut about China until he learns the facts and then if he still wants to be an advocate of China central planning and wants to not be caught denying the collapse that is coming, he should do what Henry Kissinger did to me when I asked him about the prospect of economic decline in China, growl and walk away. He'll make less of a fool of himself than by touting an economy that is to major degree a centrally planned cardboard economy. At least, in the US when we had a Fed manipulated boom, there were actually people living in the houses. China can't even get that right---to the tune of  30 million plus vacant residences.

I shudder to think what Stern and Obama talked about.