Iron Law, Debt Limit, taxes… Mail 683 20110713

 

Mail 683 Wednesday, July 13, 2011

· The Iron Law at work

· The Debt Limit and the Dance

· Phone Hacking in England

· The Libyan Adventure

· Spectacular Hubble pictures

· Taxes, property, and the rule of law

·

When you send mail to me it may be published unless specifically marked as not for publication. Be aware. I get a great deal of mail. I try to read all of it.

Our government at work

Jerry,

Yesterday, as part of a Church outreach effort, I took a man down to the Office of Public Assistance to apply for SNAP (Supplemental Nutritional Assistance Program) which is what they call the Food Stamp program now. This man is a Veteran, living close to edge, and will likely be homeless before winter without help (we’re working to correct that).

As I sat with him in the office, some interesting things happened. We had gathered all the paperwork the forms had required, such as Identification, Social Security Cards, rent expenses, utility bills, bank accounts, etc. As we began to pass over the bank account information (the man had less than $100 in a checking account) the interviewer (a very talkative person) said., "Oh, we don’t require that anymore … the truth is, you could have a million dollars in the bank, but we only care about expenses and income." While I was still reeling from that statement, she continued, "…and besides, we’re trying to get more money into the economy as part of the stimulus program."

Now, there is no doubt this man needed help, and the SNAP program would help him. He wasn’t what she termed as a ‘lifer’ on benefits, or someone who works for a few months, then gets public assistance for a vacation, then goes back to work for a while. This man was clearly embarrassed to be there, but needed help and I felt we (the taxpayers) should help him both as a Veteran and a man who had worked hard all his life, but had lost his way when he turned to alcohol.

But it’s pretty clear from her comments that the system, which has been abused before, is being abused again as a tool for the "stimulus package" liberals love so much.

Tracy

Hardly astonishing. The Iron Law of Bureaucracy insures that. But understand, these are entitlements. This is not discretionary spending. Nothing can be done about this, because it is not discretionary; or so goes the argument. Which is why the whole game needs to be changed.

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Debt limit

I see that Megan McArdle has a couple of interesting posts on what would happen if the debt limit were not raised.

http://www.theatlantic.com/business/archive/2011/07/gop-base-spending-cuts-now-or-never/241461/

http://www.theatlantic.com/business/archive/2011/07/debt-politics-the-lunatics-are-burning-down-the-asylum/241355/

Granted that servicing the debt is highest priority, it sounds as though we would be in serious trouble regardless. This year the percentage of deficit to total revenue is huge. If we can’t borrow more, we suddenly have to cut the spending by 44% – and that’s far beyond anything that even conservatives think they can do sensibly. You apparently need to cut defense salaries or Social Security, for instance. And it wouldn’t happen sensibly, it would hit an overwhelmed Treasury which generally prints millions of checks automatically.

If we are going to draw a line in the sand, I really think that it made more sense to do it over the budget, when all that was at stake was a trivial little government shut-down.

mkr

It is certain that at some point the debt limit will be raised. The Republicans will have no choice. The question is whether they can stop, not the bleeding, but the INCREASES in bleeding. In Washington as in California the liberals are adding to entitlements, the overspending is increasing, and any curtailment of increases is “a cut” to balance the budget on the backs of the poor.

If something cannot go on forever, it will stop. These increases in the deficits cannot continue.

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UK Phone Hacking Scandal

They even hacked the phones of the police investigating them. Some stories:

http://www.independent.co.uk/news/uk/crime/police-chief-99-sure-of-hacking-2312389.html

http://www.independent.co.uk/news/uk/crime/gordon-browns-shock-that-his-family-medical-records-were-hacked-2312095.html

http://www.telegraph.co.uk/news/uknews/phone-hacking/8617707/News-of-the-World-phone-hacking-live.html

http://www.theregister.co.uk/2011/07/12/mps_grill_met_police_chief_over_phone_hacking/

http://www.guardian.co.uk/media/2011/jul/12/phone-hacking-gordon-brown-news-international

http://www.bbc.co.uk/news/uk-14116786

By the way, the housing market in Mariposa has taken off in the last two weeks. If this is representative of America, the recovery is underway. Of course, it may just be bottom-feeding.

Harry Erwin

Why the Hacking Scandal has such drastic effects

This is purely my opinion but I believe the story, which has been quietly a well known secret for years with almost all papers, including the Guardian which broke this, hacking at some time or another., is now such a major storm. The BB’Cs virtual monopoly of British broadcasting is being threatened by Murdock’s expansion of his control of Sky the satellite broadcaster so they are pushing this story hard.

" Last night (Thurs) the BBC news was almost entirely devoted to the hacking story story; followed by Question Time where all the questions selected by the BBC except for 1 in the last 3 minutes were the same; followed by Andrew Neil on the same. 2 1/2 hours on this story and virtually none on the rest of the world’s news That would be justified if we were seeing a breaking news story like 9/11 but for nothing less.

Broadcasting in Britain is essentially a monopoly of the BBC and people they approve of and this monopoly. legally committed to “balance” is in fact the propaganda arm of the British state (along with the Guardian which survives on government advertising). Murdoch’s attempt to buy all of Sky http://www.belfasttelegraph.co.uk/entertainment/film-tv/news/rupert-murdoch-awaits-backing-from-ec-for-sky-buyout-15034536.html would weaken that monopoly slightly.

I do not consider it a coincidence that this scandal, which journalists of all newspapers have been guilty of for years, has suddenly broken on Murdoch’s head alone."

Neil Craig

I watch all this in awe.

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"Rope a dope"

Dear Dr. Pournelle,

I want to direct your attention to the following column on events in Libya.

http://pajamasmedia.com/richardfernandez/2011/07/11/rope-a-dope/

In particular, I want to direct your attention to the comments section, specifically, comment #8 by one wretchard. I thought he had an interesting observation:

"The principal advantage Khadaffy has over NATO is freedom of decision. He can do stuff: risk his life, suffer deaths within his inner circle, decide to change his foreign policy depending on his calculations. He can do whatever he needs to do. The West cannot.

Any kind of real movement — whether it be military action, labor market reform, budget reduction or even cracking down on crime — in Western societies is now nearly impossible. Whole societies have been paralyzed by the need to service the status quo. Keeping things going, with only minor excursions, is now the prime directive of Western politics. Everyone spies on everyone else to enforce political correctness. Britain today is mesmerized by — News of the World! But it doesn’t give a hoot about Julian Assange. It has almost forgotten it is fighting Khadaffy and losing.

Instead it is obsessed with ludicrously small issues. The political system worries endlessly about soap opera problems, sexual politics, racial quotas, “climate change” etc. This littleness promotes people like Herman Von Rompuy or Julia Gillard or Barack Obama — complete ciphers — to positions of power for no other reason than that they check all the boxes. A terrible diminuation of mind, an unbelievable poverty of thinking, has descended on the Western world."

I think he has nailed our problem exactly. Our society is at a crisis point, unable to act or respond due to a failure of imagination and our existing obligations. How to break out of that without also breaking the society is a question I don’t yet know how to answer.

Respectfully,

Brian P.

The Libyan adventure is a puzzlement. The United States has ample reason to wish Qassaffi dead or at least deposed, but for reasons of state that never happened; one supposes there were reasons not to do that. But now the enmity is open, we are breaking things and killing people in Libya, but it still continues for weeks. If we want Qaddaffi out we can (1) kill him, or (2) use silver bullets. The second method is cheaper, but it will involve finding him a safe haven and providing him with enough money to make him rich. Of course we spend more than that every day, even if we have to bribe some country to take Khaddafi and his brood into their protection. Silver bullets are fairly cheap. The alternative, killing him, would require operations by the special forces teams, meaning a Presidential order. That isn’t very likely with this President. The result is that we go one breaking things, killing people, and spending money.

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Thai Drama

Described by the administrators as a "spectacular coup", the jet, was

on Tuesday slapped with forms and stickers from the bailiffs,

photographs provided by the administrating firm show.

"We have been seeking payment of more than 30 million euros for years

and this drastic measure is virtually the last resort," administrator

Werner Schneider said.

The debt goes back more than 20 years to when German firm Dywidag

helped build a 26-km toll road between Bangkok and Don Muang airport.

Dywidag merged in 2001 with Walter Bau AG, which later became

insolvent.

</>

http://www.reuters.com/article/2011/07/13/uk-germany-thaiprince-idUSLNE76C03X20110713

——–

Most Respectfully,

Joshua Jordan, KSC

At least we are not paying for it.

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Hubble images Neptune 6/25/11 – 6/26/11 to commemorate its discovery

Jerry,

Here are the HST images of Neptune a few weeks before Neptune’s completed its first orbit of the Sun after its discovery.

<http://hubblesite.org/newscenter/archive/releases/2011/19/image/a/>

Regards, Charles Adams Bellevue, NE

Very nice indeed. Thanks.

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IRS Precision

I remember when I thought I won a Farari in a contest. They called me

and said I won; I later discovered I won a lesser prize. But, I was

worried about taxes and such. After that, I never entered one of

those contests again. Now, I’ll make sure I don’t accept any gifts

like that either. What a bummer. Government takes the fun out of

everything.

The tax man may be on the hunt for the super fan who caught Derek

Jeter’s 3,000th hit.

Christian Lopez, 23, recovered the prized ball his father fumbled

after The Captain hammered it into their section of the stands in the

third inning of the Yankees’ win over Tampa Bay on Saturday.

The Verizon salesman from Highland Mills, N.Y., gave the ball back to

Jeter, whom he called an "icon," and the Yankees lavished a slew of

prizes, including luxury box seats for every remaining home game this

season and post-season and some signed memorabilia.

Now the IRS wants a piece. The prizes Lopez received are estimated to

be worth more than $32,000 — and, like game show contestants, Lopez

may have to pay taxes on the gifts and prizes because the IRS

considers them income.

http://www.nbcnewyork.com/news/local/
Fan-Who-Caught-Jeters-3000th-Hit-May-
Owe-IRS-Thousands-125406723.html

——–

Most Respectfully,

Joshua Jordan, KSC

It used to be that we had rule of law, and respect for property rights. Now you have a “right” to what the government will let you keep. Weep for the Republic, or rejoice, for equality is at hand. As you choose. And as you sow, so shall you reap. We have for decades sown the wind.

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Dr. Pournelle,

Your correspondent asked "If Iran can seal its border, why can’t we?"

He answers his own question a couple of lines further down; it’s not the money we can afford and they can’t, it’s something else entirely:

"Nearly 4,000 police and Revolutionary Guards have been killed since then, either by Afghan smugglers bringing drugs in, or shooting at those building the fence that has been built along the border."

Neither the US, nor any other Western democracy, would put up with even 40 casualties in such a cause, never mind 400, and certainly not 4000.

Slowly getting used to the new layout!

Andrew Duffin

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