09/1/15

China and Russia are Waging War on America

By: Cliff Kincaid
Accuracy in Media

In a typically cynical article, “GOP presidential candidates have a new country to bash: the People’s Republic of China,” Politico complains about “China-bashing” by various Republican candidates. The story by Nahal Toosi carries the headline, “The Republicans’ Red Scare,” but only mentions one time that China is a “communist-led state.”

Politico uses the term “red scare” to suggest that the problem is being greatly exaggerated.

If there is any doubt about the “red” in Red China, consider the Chinese Constitution, which declares, “The People’s Republic of China is a socialist state under the people’s democratic dictatorship led by the working class and based on the alliance of workers and peasants. The socialist system is the basic system of the People’s Republic of China. Sabotage of the socialist system by any organization or individual is prohibited.”

Mao Zedong, considered by many the greatest mass murderer in history, ispictured on the Chinese currency.

After Politico went to press with its defense of Beijing, the Los Angeles Timesreported that “Foreign spy services, especially in China and Russia, are aggressively aggregating and cross-indexing hacked U.S. computer databases—including security clearance applications, airline records and medical insurance forms—to identify U.S. intelligence officers and agents, U.S. officials said.” The Times added, “At least one clandestine network of American engineers and scientists who provide technical assistance to U.S. undercover operatives and agents overseas has been compromised as a result, according to two U.S. officials.”

Politico reported that criticism of China “might lead Chinese leaders to cozy up to another world power instead, like Russia (another favorite GOP boogeyman), the former ambassador said.”

This former ambassador is Jon Huntsman, the “moderate” Republican who served as Obama’s Ambassador to China. He ran for president in 2012, dropped out, and threw his “support” behind Mitt Romney, who lost a race he should have won.

Later in the article, Politico refers to China’s “alleged” cyberattacks.

“U.S. officials have not publicly blamed Beijing for the theft of the OPM and the Anthem files, but privately say both hacks were traced to the Chinese government,” reported the Los Angeles Times. “The officials say China’s state security officials tapped criminal hackers to steal the files, and then gave them to private Chinese software companies to help analyze and link the information together. That kept the government’s direct fingerprints off the heist and the data aggregation that followed. In a similar fashion, officials say, Russia’s powerful Federal Security Service, or FSB, has close connections to programmers and criminal hacking rings in Russia and has used them in a relentless series of cyberattacks.”

Why is there such a determination by a well-read publication like Politico to play down threats from China and Russia? This article is a case study in Republican-bashing. Politico is trying to warn Republicans running for president not to follow Donald Trump’s lead in focusing on how foreign countries are taking advantage of the United States.

The article by Nahal Toosi says that “…while scapegoating Beijing and its questionable economic policies may seem like an appealing campaign tactic, China specialists—including many in the GOP—warn that Republicans run the risk of looking ignorant about U.S.-Chinese ties.”

The ignorance comes from those in politics and the media who play down the nature of the communist regime.

The author goes on to warn against “bullying” or “isolating” the world’s “most populous country.”

“To be fair,” she writes, “China gives White House hopefuls lots of material for a tough-guy routine. Beijing’s aggressive moves in the South China Sea, its suspected role in cyberattacks on the U.S. and its dismal human rights record are just a few areas already seized upon by Republicans (and some Democrats) for criticism. China’s currency policies have long frustrated the United States in particular, and its increased military spending has led to wariness around the world.”

Notice how “alleged” cyberattacks have become “suspected.”

But in order to “be fair” to Republicans, she grudgingly admits some “questionable” Chinese policies that give the GOP candidates enough material to appear “tough.”

This is a despicable whitewash of a communist regime that is clearly waging war on the U.S.

“Potential enemies of the United States have claimed that they have the ability to crash our markets and our former head of NSA acknowledged that they do have that capability,” notes Kevin Freeman, author of Secret Weapon: How Economic Terrorism Brought Down the U.S. Stock Market and Why It can Happen Again.He notes that the Dow Jones Industrial Average crashed by more than 1,000 points at the open on August 24 “after China accused us of crashing their market.” He says that China has published a book, Unrestricted Warfare, calling a stock market crash a “new-era weapon.”

Instead of holding the Obama Administration accountable for safeguarding our national security information, Politico attacks Republicans for being too critical of China.

Later in the article, Politico quotes some comments about why we have to take the time to understand that the rulers in Beijing will realize this is just campaign rhetoric. “Top U.S.-watchers in Beijing are pretty savvy,” says Melanie Hart, identified as “director for China policy at the left-leaning Center for American Progress.” It turns out she “worked on Qualcomm’s China business development team, where she provided technology market and regulatory analysis to guide Qualcomm operations in Greater China. She has worked as a China advisor for The Scowcroft Group, Albright Stonebridge Group, and the University of California Institute on Global Conflict and Cooperation.”

In other words, part of her career has been devoted to facilitating U.S. investment in China. She went to China in June to work on U.S.-China cooperation on “climate change” matters. She has a vested interest in making the communists look non-threatening.

Meanwhile, last January, a Russian spy ring was uncovered in New York City whose purpose in part was to “collect economic intelligence” and recruit New York City residents as intelligence sources. One of the targets of the economic intelligence gathering, a Justice Department press release said, was the New York Stock Exchange. The actual complaint filed against the Russians went into more detail, as they are shown discussing how to obtain information about the “destabilization” of U.S. financial markets.

So despite the wisdom conveyed by Jon Huntsman about forcing China into the arms of Russia, it looks like Russia and China are already working very well together.

Nevertheless, the first state visit by President Xi Jinping of China to the United States will take place in September.

Look for another Politico article about GOP “obstructionists” getting in the way of our blossoming relationship with the butchers of Beijing.

05/28/15

The Ironic Tie Between Elizabeth Warren’s Hypocritical Home Flipping and Mitt Romney

By: Benjamin Weingarten
TheBlaze

Massachusetts political roots aside, you might think that the comparison of Democratic Sen. Elizabeth Warren and former governor and failed Republican presidential candidate Mitt Romney is absurd.

Warren, the progressive populist who in both rhetoric and regulation has sought to shackle “predatory” financial institutions as a means of supposedly protecting “the little guy,” and Romney, the patrician and wealthy denizen of the financial establishment of 47 percent infamy, would appear to be polar opposites.


Elizabeth Warren delivers her famous “You didn’t build that” speech.
(Image Source: YouTube screengrab)

But alas, as is so often is the case in politics, Warren’s public face is contradicted by her private actions – actions that we will soon see are similar in nature to those that made Romney a millionaire.

Warren, like Romney, profited by buying assets at low prices and through either improving said assets or waiting for the market to strengthen, selling them at higher prices.

As Jillian Kay Melchior and Eliana Johnson lay out in a recent National Review exposé, Warren “bought and sold at least five [residential] properties for profit,” generating at least $240,500 before accounting for remodeling costs.

Several of the homes Warren purchased and then flipped had been foreclosed upon.

The focus of the piece is the rank hypocrisy that Warren would execute such profit-seeking transactions, given that she has called the idea of buying and selling properties quickly for profit a “myth” that contributed to our economic woes, and decried the banks that foreclosed on the homes of working class Americans.

Rightfully, the column closes with the following flourish:

In her 2014 autobiography, Warren wrote of the events that precipitated the financial crisis that “everyone seemed to have a story about someone they knew who was getting rich by flipping houses.”

She omitted a crucial one.

But it ought to be pointed out that not only were Warren’s actions counter to her stated principles – they mimicked those of the private equity companies and other financial institutions that she has spent her entire public life railing against.

What private equity professionals like Mitt Romney, and investors in general seek to do is “buy low and sell high.”

Firms like Romney’s Bain Capital scour the market for businesses they believe are undervalued and/or have significant growth potential. They seek to buy these businesses at a low price, and grow them while making them more profitable and efficient by cutting costs, closing non-core operations while strengthening core ones and implementing new and improved strategies and practices to better their business models.


Justin Sullivan/Getty Images

By improving the companies in which they invest, the end goal is to sell them for many times the price at which they were bought.

What Romney did at the macro level in investing in businesses worth hundreds of millions or billions of dollars, Warren did at the micro level in investing in homes worth thousands or hundreds of thousands of dollars.

The difference however is that Romney’s investing in many cases led to the creation of ever-better goods and services at ever-lower prices, with the benefits accruing to not only Romney, Bain’s investors, and the employees of the strengthened companies, but all consumers – that is, you and me.

Certainly Warren’s investments in home remodeling may have created work for construction companies and home suppliers, but those benefits pale in size and scope to the benefits to the public of successful private equity investments.

Too, many progressives are queasy about the idea of gentrification, which they argue prices poorer people out of their neighborhoods, replacing them with the more “privileged,” all supposedly to the detriment of the character of said communities. Warren supported this process by improving several of the homes she purchased that had been in disrepair, and selling them at a significant premium.

No one should begrudge Elizabeth Warren for her apparent investing acumen.

And one suspects that no one on the left will begrudge her for her home-flipping hypocrisy, given that the truly ill-gotten riches of the Clintons who partnered with all manner of tinpot dictators and civil rights squelchers do not seem to offend the left’s sensibilities.

But all should recognize that the very business for which Romney was castigated by large swaths of the public is in essence the same business in which Warren was an active participant, only at a smaller scale and with far more modest benefits.

This is not an indictment, but a compliment, even if Warren herself would not like to hear it.

More broadly, we should be celebrating those who create wealth, and crucifying those who destroy it — namely government bureaucrats whose resources only exist because they bilk the individuals and businesses that did build that.

05/3/15

Obama’s Trade Deal With Communist Vietnam and Muslim Brunei

By: Cliff Kincaid
America’s Survival

Kevin Kearns, president of the U.S. Business & Industry Council (USBIC), is interviewed about whether the Republican-controlled Congress will pass President Obama’s Trans Pacific Partnership. USBIC is a national business organization advocating for domestic U.S. manufacturers since 1933. He says previous trade deals have resulted in the U.S. losing five million manufacturing jobs and 57,000 manufacturing establishments since 2000.

01/3/15

‘Economics professors’ trash entrepreneurs, argue for taxing the rich

By: Renee Nal
New Zeal

Occupy

Photo Source: commons.wikimedia.org

An OpEd posted at the Tampa Bay Times by Economics professors William L. Holahan and Charles O. Kroncke (retired) begins with the sentence: “It is a common misconception that entrepreneurs create jobs.” Instead, they argue, taxpayer funded “investments” into education and infrastructure is what empowers the “true job creator: the workings of the market.”

The roads and bridges argument has been used by President Obama in his infamous “You didn’t build that” speech, where he argued that entrepreneurs are powerless without the help of others:

If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen.

He continued to tout the power of the government:

The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.

This is a common argument used by advocates of big government and yes, contrary to the Constitution.

The federal government has no business spending money on local roads and schools. At least if one considers the Constitution, which many do not, of course. After a law passed for federal funding to build the Erie Canal, for example, President James Madison said that although the project was needed and valuable, he was “constrained” by the Constitution and he vetoed the bill.

But the canal was still built anyway. How?

…the New York State legislature took the matter into its own hands and approved state funding for the canal in 1816, with tolls to pay back the state treasury for upon completion.

As professor of history at Hillsdale College Burt Folsom observes:

The Constitution does not grant Congress the right to appropriate funds for infrastructure. Therefore, the Founders usually argued that states or private companies should do the work; neither good government nor just results occurred when the people in Georgia could be taxed to pave a road or build a canal in New York.

While speaking of the size of government, James Madison wrote in Federalist 48,

It will not be denied that power is of an encroaching nature and that it ought to be effectually restrained from passing the limits assigned to it.

The authors continue,

The fixation on the ‘job-creator’ myth also distorts recession-fighting measures. For example, cutting business taxes when the problem is inadequate demand will not encourage employers to restore lost jobs or to hire more people.

If the problem is “inadequate demand,” the employers should be a bit more entrepreneurial… or fail. That is the beauty of the free market and why government intervention in industries always (always) fails. If an individual can provide a good or service that fulfills a need, he or she is on the way to job creation despite the federal government, which helps to keep innovators from success with their endless regulations and tax requirements. The government, in other words, only serves as an obstacle to true entrepreneurship.

While testifying that the website for the Affordable Care Act was getting closer to being fully functional, Kathleen Sebelius, former Secretary of the U.S. Department of Health and Human Services (HHS) said something very telling:

While there is more work to be done, the team is operating with velocity and effectiveness that matches high performing private sector organizations.

The private sector simply does it better.

The economists quote Nick Hanauer, billionaire venture capitalist and strong supporter and higher taxes, as saying:

Taxing the rich to make investments in the middle class is the single smartest thing we can do for the middle class, the poor and the rich.

Hanauer loves taxes, as evidenced by this recent tweet:

Holahan and Kroncke have written several articles previously and co-wrote the book “Economics for Voters.” In September, the dynamic duo also argued for a minimum wage increase, which has been found by numerous studies to have a negative effect on low-skilled workers. As reported at Politifact,

The last three federal minimum wage increases (2007, 2008 and 2009) were followed by significant job losses, but that was all taking place amidst the global financial crisis. [emphasis added]

It is not a stretch to consider that raising the wage is really just a political ploy, consequences be damned. The double bonus for the federal government (with their unpaid interns, exempting themselves from the Fair Labor Standard Act), is that minimum wage increases equate to higher taxes. Big government supporters continually and desperately attempt to justify the value of big government, but continually come up short.

This article has been cross-posted at Broadside News.