Using Water As A Weapon Of War

Herschel Smith · 03 Aug 2014 · 9 Comments

Next City: In a war, anything can be a weapon. In a particularly ruthless war, such as the conflict that has been raging in Syria for more than three years, those weapons are often turned against civilians, making any semblance of normal life impossible. Such is the case, experts say, with the way the nation’s water supply is being manipulated to inflict suffering on the population. According to an article posted by Chatham House, a London-based independent policy institute, water…… [read more]

Battle Rages in D.C. Over Debt Ceiling: Time for Usual G.O.P. Surrender

BY Glen Tschirgi
3 years, 1 month ago

If this post in Reuters is to be believed, roughly 46% of Americans are not paying attention to the debt ceiling war raging in D.C.   Given, however, that TCJ readers tend to be well informed and attentive to what is happening in the country and the world at large, I would guess that many of you have been paying attention.   I will confess here and now that I have been following it almost obsessively and things are reaching a fever pitch as the proverbial clock counts down to the fictional “zero hour” of August 2nd, the date where, supposedly, the federal government will run out of money.

Given that fever pitch, it is only right that I should throw some gas on the fire and go on record with some analysis and predictions.

Something profound happened in November 2010.   Whether you are a Democrat, Republican, Independent or something else, a veritable, electoral tsunami swept the country in November with voters throwing out politicians who had been complicit with the Obama spending spree of 2009 and 2010.    One message, extremely clear and simple, rang out:  stop!  Stop the spending and the borrowing that fuels the spending.   Republicans campaigned across the country on the message of reining in spending and tackling the exploding federal debt.   And they got elected largely on that basis.  There should be no reason, therefore, that politicians and pundits in Washington, D.C. voice such shock and disbelief that the Republican-controlled House, for seemingly the first time in history, is seriously concerned about spending and, in particular, enabling another mountain of spending by raising the debt ceiling.

Consider, too, that what we are seeing in the debt ceiling battle is the direct result and culmination of the battle over the 2011 Budget (or lack thereof).  Recall that the prior Congress had not passed any sort of budget (as required by law) in 2011 but had, instead been functioning according to “continuing resolutions” that avoided a government shutdown.   When Republicans took the House in January 2011, they let it be known that the continuing resolutions had to end.  Unfortunately for all of us, the deal brokered by Rep. John Boehner that allowed a 2011 Budget to pass did little or nothing to cut actual, 2011 spending and it was clear to everyone that the real opportunity to effect spending reforms and budget reductions would occur when the debt ceiling was reached.   As James Pethokoukis observed in July, the crisis is not a government “default” but just another, looming shutdown based on a lack of funds to keep all parts of government operating.   The chart attached to his article convincingly lays out the revenues coming in to the federal government versus the outlays that come due in August 2011:

That is the context in which we find ourselves.

As I study the news and opinion articles, I have been impressed with a few politicians who seem to get it.   One of them, elected in the 2010 Wave, is Senator Marco Rubio from Florida.   Here is the link to a July 30th speech he gave in the Senate that is stellar (Warning– it is a 14-minute clip, but is well worth the time):

Sen Rubio re debt ceiling on YouTube

Rubio gets it.

He understands that the issue confronting Congress is so much bigger than a so-called “government default.”   Rubio gives a very good, initial summary of the actual problem:  the Federal government takes in roughly $180 Billion each month but spends roughly $300 Billion each month, forcing the U.S. to borrow something like 40 cents of every dollar it spends.    This is not difficult to understand for anyone who has had to manage their own finances, let alone run a business.   The attitude in the Capitol that such an imbalance between income and expenditures is in any way tolerable (and there are many in D.C. who think the U.S. is not spending enough) tells us everything we need to know about the sick culture of our national leadership.

But Rubio goes beyond just the summary of the problem writ large.   He precisely points out the deliberate inaction of the Senate and White House in refusing to propose any plan of any kind that would address the collision with the $14.2 Trillion debt ceiling, a collision that has been clearly anticipated since at least January 2011.   Rubio, in fact, accuses the Senate majority and the White House of manufacturing the “debt crisis”  by sheer political calculation that the American people will hold Republicans responsible if the debt ceiling is not raised.   This “crisis,” in other words, is only a crisis because Obama and Reid wanted a crisis.

Contrast Rubio’s remarks with the question posed by Senator John Kerry at about the 7:40 mark in the video.   Kerry was apparently miffed that Rubio would dare to quote then Senators Obama and Biden in 2006 and Sen. Harry Reid in 2007, all of whom spoke against and voted against raising the debt ceiling then.   Kerry sought to distinguish those embarrassing votes in 2006 and 2007 by pointing out that their votes did not really matter because the debt ceiling increase was being approved by large margins at the time.

Does everyone catch the implication here?  Kerry is giving away the game.  In essence, Kerry is saying that you cannot take anything said by Obama, Biden or Reid seriously in 2006 and 2007 because, afterall, everyone knew that the debt ceiling was going to be raised so there was no harm done by them voting against it or railing against it.   All that talk in 2006 and 2007 was so much puffery, no one took it seriously.   Now, it’s serious.   So anyone who speaks out against raising the debt ceiling must really mean it and that means, ipso facto, that such a person is a “terrorist” or a “suicide bomber.”   Kerry even went so far as to call those, prior votes and speeches “truly symbolic.”

At the end, Rubio makes the most important point of all, that the real crisis facing the U.S. is its apparent inability to reduce spending to a point that the bond rating agencies consider sustainable.   This is the real threat to Americans, not the manufactured crisis of hitting the predetermined debt ceiling.   The debt ceiling could be raised $2.4 Trillion dollars tomorrow (as the President has demanded) but that does not solve anything.   Until there is a plan in place that fundamentally alters the spending trajectory of the U.S., the rating agencies have made it clear that the U.S. is on the brink of losing its AAA rating which will inevitably lead to higher interest on the Federal debt and have a ripple effect throughout the U.S. economy as states and lenders are forced to pay more for borrowing.  Rubio likens the situation to a house on fire and the calls by Senator Kerry and others to compromise make no sense when the compromises do nothing to extinguish the flames burning down the house.

Now comes the thoroughly disheartening news via Hot Air.   Apparently the professional politicians are on the verge of letting the American House burn down.

According to Ed Morrisey, citing an ABC News report:

ABC reports this morning that Congressional leaders have already begun briefing their caucuses on the eleventh-hour deal that emerged from the White House last night.  Jonathan Karl notes that the deal is contingent on getting enough support from each House caucus to form a majority, and in the Senate to avoid a filibuster.  We’ll come back to that in a moment, but Karl also updates the story on the deal.  The topline numbers are apparently $2.4 trillion in matching spending cuts and debt-ceiling raises instead of $2.8 trillion, but now both are split into two parts:

The current framework would give the president the authority to raise the debt ceiling in two parts: roughly half of it now and the balance at the end of the year.

Each increase would be subject to a Congressional resolution of disapproval.

If Congress voted to disapprove that increase, however, the President could veto their disapproval.

The AP reported earlier on the $2.4 trillion number, too, although they say the cuts will be “slightly more” than the debt-ceiling boost.  That’s still enough to get Barack Obama past the 2012 election, but not by much. It guarantees that the debt ceiling will be a 2012 election issue, although by now that was a given anyway.

However, the added McConnell wrinkle is interesting — and potentially a big win for Republicans.  Essentially, Republicans get to claim credit for the cuts while laying blame for the debt increases on Obama.  If they “disapprove,” Obama will veto the disapproval and end up owning all of the political baggage for the debt-ceiling increases.  That’s a steep price to pay for Obama just to protect himself through the next election, although he could turn it on its ear and refuse to veto the second increase disapproval and force this fight all over again.  That would, however, put the country back in “crisis” mode, and that would still be all on Obama.

Despite the triumphant tone of Morrisey’s post, the reality is that Obama gets to borrow at least $2.4 TRILLION more dollars (although it remains to be seen whether there will be enough investors willing to toss another gigantic load of money into the U.S. black hole without higher interest rates or whether the Treasury will be forced, yet again, to buy up some portion of the offered bonds itself) while the so-called “cuts” seem to be the same, phony 10-year reductions in spending that will never materialize.

Morrisey provides more details on the pending deal here:

  • 2.8 trillion in deficit reduction with $1 trillion locked in through discretionary spending caps over 10 years and the remainder determined by a so-called super committee.
  • The Super Committee must report precise deficit-reduction proposals by Thanksgiving.
  • The Super Committee would have to propose $1.8 trillion spending cuts to achieve that amount of deficit reduction over 10 years.
  • If the Super Committee fails, Congress must send a balanced-budget amendment to the states for ratification. If that doesn’t happen, across-the-board spending cuts would go into effect and could touch Medicare and defense spending.
  • No net new tax revenue would be part of the special committee’s deliberations.
  • Note too that the second round of cuts appears to be guaranteed; if the Super Commission can’t agree on specific and precise reductions, then an across-the-board cut goes into place.

I expect plenty of hyperventilating at the term “Super Committee,” but it’s basically the kind of ad hoc committee that Congress can authorize at any time.  It sounds a lot like the BRAC process used by Congress to identify military bases for closure.  The prohibition on net tax revenue gains is a big, big win for Republicans if it holds.  I should note that Jimmie Bise in his post believes that the second round of cuts might be actual cuts; if so, then this is an even bigger win.

Again, the celebrating is way too premature.  Once again, legislation is being considered without any public debate or open discussion.  It is all being hashed out in private, back-room deals and then presented, at the last minute, under a pressure cooker of phony, Media-inspired hysteria, for a take-it-or-leave-it vote— yeah, the kind of vote where you are burned at the stake as a heretic if you vote “no.”   Will anyone have read this deal by the time for voting, or will this be another Obamacare monstrosity that has to be passed, as Pelosi put it, “to know what is in it.”  We all know how these surprises turn out.

But wait, Ed Morrisey says that there may be a requirement in the deal that if the spending cuts recommended by the Super-Duper Committee are not adopted by the end of December 2011, then the House and Senate have to at least vote on a balanced budget amendment (or perhaps actually pass a balanced budget amendment to send to the States to approve) or automatic cuts will be made to Defense spending and Medicaid (among other things).   The details are slim, but the cuts to Defense have been rumored to be draconian and far worse than the cuts to Medicaid which would only affect care providers and not the beneficiaries.   How’s that for a deal?   Republicans get to choose which poison they most prefer.  Hooray!

There is no way that the Democrat-controlled Senate is going to approve a balanced-budget amendment to the Constitution.   Why should they?  The only penalty is the terrible, awful “cuts” to Medicaid that come out of the hide of the evil doctors, insurance companies and drug companies.   I can hear the Democrats whining to the gullible Republicans in Bre’r Rabbit fashion, “Oh please, please don’t throw me in that briar patch!”

Just to show that I can do more than complain about the bad deals the GOP is considering, I will offer at least a partial, near-term solution here.

If the Republicans cannot bear to stick to the three, different bills they have passed (the 2012 Budget, the Cut, Cap and  Balance Bill and the last version passed in the House, dubbed “Boehner 3.0″), at the very least, the Republicans should pass a short-term (read here 60-day) increase in the debt ceiling that will get the government through the rest of the 2011 Fiscal year that ends on September 30th.    Use that additional time to keep hammering away for real, immediate, tangible, meaningful cuts to the 2012 Budget.  If the Senate and White House will not agree to substantial and immediate cuts in the 2012 Budget, the House should start passing individual appropriation bills, starting with the most politically volatile items first:  Defense, Social Security, Medicare/Medicaid and, perhaps, unemployment benefits.   At the same time, the House can pass small, incremental debt ceiling increases that will require some level of immediate cuts to government spending— enough, in other words to pay the debt service and, say, 90% of the government expenses for the next 60 days, but not 100%.   It will be up to the Senate and Obama to ignore or vote these bills down, but at least the House will have taken concrete steps to provide spending reductions.  The House can continue to pass these bills with actual spending reductions that will reduce the need for future debt ceiling increases.   It will also short-circuit the inevitable “crisis” of a government shutdown when the Democrats refuse to pass a 2012 Budget in the Senate and then demand another continuing resolution.

This, by the way, is in stark contrast to the approach taken by Obama, Reid and Boehner that calls for spending reductions over 10 years.   Forget these 10 year plans! This is not the Soviet Union.  Even the Politburo was not delusional enough to think that they could come up with ten year plans.  Five years of fantasy at a time was enough for them.

To conclude this nice, little rant, it is just pathetic to consider that the GOP is on the verge of caving in, yet again, to panic legislation.   If this happens, it is time for fiscally conservative Americans to seriously consider ditching the Republican party in favor of a third party.  Or, rather, a second party since the GOP is, for all legislative purposes, no different than the Democrats.

The Great Decline of 2011

BY Glen Tschirgi
3 years, 1 month ago

After tracking the news swirling around the debt ceiling debate, it has been a challenge to remain upbeat about the prospects for America’s future.  But when I saw the Powerline blog write-up on a Wall Street Journal Online opinion piece (subscribers only) by Fred Fleitz about the CIA’s latest thinking about Iranian nuclear ambitions, the camel’s back officially broke.

If Fleitz is to be believed, the CIA and other intelligence agencies are prepared to issue another National Intelligence Estimate on Iran that, essentially, reaffirms the ridiculous (and politically motivated) finding that Iran suspended its nuclear weapons activities in 2003.

According to Fleitz, who has read the estimate, the American intelligence community stands by its collective assessment, first made in 2007, that Iran halted its nuclear weapons program in 2003 and has not restarted it since:

In February, the 17 agencies of the U.S. intelligence community issued a highly classified National Intelligence Estimate updating their 2007 assessment. That estimate had been politicized by several officials who feared how President George W. Bush might respond to a true account of the Iranian threat. It also was affected by the wave of risk aversion that has afflicted U.S. intelligence analysis since the 2003 Iraq War. Intelligence managers since then have discouraged provocative analytic conclusions, and any analysis that could be used to justify military action against rogue states like Iran.

I read the February 2011 Iran NIE while on the staff of the House Intelligence Committee. I believe it was poorly written and little improvement over the 2007 version.

Fleitz baldly states that, in pre-publication review of his column, the intelligence agencies censored his criticisms of the NIE analysis, including his serious concern that it manipulated intelligence evidence.

It is so patently ludicrous to conclude that Iran halted its nuclear weapons work in 2003 and has not resumed that work that I can only wonder whether Tehran is making deposits in the bank accounts of the intelligence officers.  No one who has paid any attention to the progress of the Iranian nuclear program can have any doubts about their intentions and substantial efforts to have a working nuclear weapon in short order.

Surveying the American landscape in 2011, we are a nation beset by “enemies without, enemies within.”   And we render ourselves defenseless to both.

We have a political party that refuses to stop spending hundreds of billions of dollars that we do not have regardless of the certain fiscal collapse approaching.   And we have an intelligence community that has completely lost its sense of direction, seeking to manipulate policy choices by elected leaders rather than giving an honest assessment of the threats facing our nation.

This cannot continue.   And it won’t for much longer.

Obama’s April 13 Speech: No We Won’t!

BY Glen Tschirgi
3 years, 4 months ago

The reaction to President Obama’s April 13 speech at George Washington University has been, predictably, partisan and all over the map.

Democrats have hailed it as “real leadership” and Republicans have denounced it as harsh and misleading.

After reading the text of the speech, I have an altogether different reaction.  I wonder if any of you share it.

Obama’s speech leaves me with a profound sense of loss.

It is a sense of deep disbelief, that we, as a nation, could have drifted so far from our original moorings that we are reduced to this kind of speech.   That feeling is deepened by the events of  early April where the Republican majority in the House of Representatives, faced with a 2011 Budget they inherited from a reckless Democrat-controlled Congress that is on course to spend more than $1.7 trillion beyond revenues, did not have the nerve to push for more than a pittance in spending reductions.

Even the budget proposal put forward by Rep. Paul Ryan (R- OH) is no, real encouragement.  It takes such small steps over such a long period of time and does nothing to address the looming budget killer– Social Security– that it requires an impossible leap of faith to believe that intervening elections will not derail even this modest attempt at fiscal sanity.

Now we are being told that the national debt limit must— MUST!– be raised again just one year after it was raised to $14.294 trillion.

A friend recently pointed me to an opinion piece by David Brooks in The New York Times that is notable only for its inane quality.  I include it here as just a sample of how utterly clueless the State-run Media seem to be about current events.

Brooks’ main point is that, while everything may look much the same in today’s political landscape as it has since the 1980′s, his clairvoyance is telling him that some sort of change is coming:

If you dive deeper into the polling, you see the country is not mobilized by this sense of crisis but immobilized by it. Raising taxes on the rich is popular, but nearly every other measure that might be taken to address the fiscal crisis is deeply unpopular. Sixty-three percent of Americans oppose raising the debt ceiling; similar majorities oppose measures to make that sort of thing unnecessary.

There is a negativity bias in the country, especially among political independents and people earning between $30,000 and $75,000 (who have become extremely gloomy). It is hard to rally majorities behind immigration, energy or tax reform.

At some point something is going to happen to topple the political platform — maybe a debt crisis, maybe when China passes the United States as the world’s largest economy, perhaps as early as 2016. At that point, we could see changes that are unimaginable today.

New political forces will emerge from the outside or the inside. A semi-crackpot outsider like Donald Trump could storm the gates and achieve astonishing political stature. Alternatively, insiders like the Simpson-Bowles commission or the Senate’s bipartisan “Gang of Six” could assert authority and recreate a strong centrist political establishment, such as the nation enjoyed in the 1950s.

Neither seems likely now. But in these circumstances, rule out nothing.

Maybe it is just the cozy, isolated, elitist cocoon that Brooks inhabits, but it is fairly clear that the “new political forces” that Brooks is searching for have been on exhibition since 2009: the Tea Party movement.   How did Brooks miss the entire 2010 elections?  The enormous change in the House and even the Senate could not have slipped Brooks’ notice, could it?

And what about the Union Mobs in Madison, Wisconsin, trying to intimidate duly elected officials from carrying out their duties (with the direct and coordinated aid of Democrat “flee-bagger” lawmakers who hid out in Illinois)?

I am in my mid-forties, so my direct recollection of U.S. history prior to the early 1970′s is rather limited, but does anyone remember a time when the Federal government was so hamstrung and a President so disconnected from reality?

Where does this lead us?  The U.S. is on a collision course with the proverbial, economic iceberg and what passes for leadership at the moment is debating whether our final meal should be in the dining room or out on the ship deck.

The National Debt and A Loan Shark Named China

BY Glen Tschirgi
3 years, 7 months ago

This article in CNBC.com yesterday highlights the lengths to which the U.S. government went to appease China during the fiscal crisis of 2008 and 2009.

Confidential diplomatic cables from the U.S. embassies in Beijing and Hong Kong lay bare China’s growing influence as America’s largest creditor.As the U.S. Federal Reserve grappled with the aftershocks of financial crisis, the Chinese, like many others, suffered huge losses from their investments in American financial firms — from Lehman Brothers to the Primary Reserve Fund, the money market fund that broke the buck.

The cables, obtained by WikiLeaks, show that escalating Chinese pressure prompted a procession of soothing visits from the U.S. Treasury Department.

In one striking instance, a top Chinese money manager directly asked U.S. Treasury Secretary Timothy Geithner for a favor.

Lest anyone think that China’s obvious leverage does not affect our foreign policy, there is this:

The concern in certain influential Washington and Wall Street circles is that Beijing would leverage its position as the main enabler of U.S. overspending. And the cables provide a glimpse into how much politics inform relations between the world’s two largest economies.

One cable cites Chinese money managers expressing concern that U.S. arms sales to Taiwan — a major, longstanding irritant in the relationship — could sour the Chinese public on Treasury purchases.

Get that?  It is the “Chinese public” that is so concerned about arms sales to Taiwan.  The authoritarians in Beijing are at the mercy of public opinion.  Who knew? I guess another Tienanmen Square is about to break out any time now.

Is there any better example of the malignancy of our soaring debt than this?

China has the Treasury Secretary running to them with assurances that their investments will be protected, at a time when American pension funds and ordinary American investors are taking massive losses.

Not only that, China more or less demands that its plan to buy over $1 Billion of Morgan Stanley shares get immediate Treasury Department approval (rather than wait the customary 2-week review period) and, magically, the approval is obtained the next day, without any formal application having been filed.

And, oh, by the way, the Chinese public is very concerned about arms sales to Taiwan so the U.S. had better knock that off, too.  (And the Chinese public is also very concerned about any actions that might interfere with Iran’s nuclear weapons program).

One of the unmistakable messages from this article is that China exercises enormous leverage simply by threatening to stop buying up U.S. treasury bonds.   Although the article also claims that China needs to buy treasuries, the article never explains or supports that claim.  The “need” is clearly a one-way street.   China has other places to invest their cash whereas the U.S. cannot find any, other investor that can buy up treasury bills on anything like the scale of China.

This should serve as an urgent wake-up call, particularly to those in Congress who are debating the remaining funding of the federal government for 2011 and the budget for 2012.  The U.S. simply cannot afford to get any deeper into debt, especially not with China.

In our own, personal lives, it is one thing to take a short-term loan from a friendly relative.  No one in their right mind would get deeply in debt to a hostile co-worker.  What the U.S. is doing amounts to getting into deep debt with a loan shark.  Even a community organizer should have some experience with that outcome.

Make no mistake, the only reason that the U.S. has not gone off the financial cliff at this point is because we continue to enjoy incredibly low borrowing costs for our bond sales.  The article makes clear that there is a direct connection between China’s actions in the U.S. debt market and the interest rate that the U.S. has to pay on its short-term and long-term borrowing.  If the cost to the U.S. of borrowing rises in any substantial way, interest payments will eat up huge amounts of the federal budget.   At that point, the U.S. will either have to default on that debt which would have calamitous consequences, or the U.S. will have to print huge amounts of money which would likely result in the kind of hyperinflation that hit, for example, Argentina in the late 1990′s.

Of course, China has to be careful.  It is not in their interest to push the U.S. into default or devaluation of the dollar.  And, as the article notes, the U.S. is the single, biggest purchaser of Chinese exports.  All the same, this is not “mutually assured destruction.”   This enormous leverage that China now holds over the U.S. can render us paper tigers, afraid to take any action that might upset or anger our Chinese overlords.   To put it in loan sharking terms:  while it may not be in China’s interest to kill us, there is plenty of pain that they can inflict short of death.

So, bearing all of this in mind, we are confronted with a President proposing a $3.8 Trillion 2012 budget that requires over $1.4 Trillion (!!) in new borrowing from China, among others.

This is beyond a “lack of leadership” as some have said.  Given the realities of our fiscal situation, I suggest that the President’s budget comes very close to a “high crime and misdemeanor.”


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