Scott Walker had a strong showing at the Conservative Political Action Conference, sticking to his right-to-work theme and how to free up state economies from some, and only some, of the burdens of union regulations. Like obligatory membership. The background to all this, of course, is Walker’s cautious doubting of Obama’s Christianity, which was ridiculed by much of the main stream media. If only he had finished his degree at Marquette he’d understand how to deal with trick questions and give approved answers. The media seems only too glad to try and place an “unexperienced governor from a small state” label on Scott Walker’s forehead.

In fact, the reality is more like a determined governor from a state where there’s no place to hide, who’s not afraid to do battle with unions to ensure that Wisconsin is a place that welcomes job creation. Scott Walker first took a shot at getting elected – one of the toughest jobs there is – at the age of 22 when most recent grads are trying to show up on time to their job interviews. He has forged a career in politics from the county level to the state level with a careful eye on budgets and a pro-life stance. To not expect bad press in a state like Wisconsin when you try to push back against government expansion and entrenched unions is silly. In other words, it is clear where Scott Walker stands on economic and ethical issues at the state and national level. And that clarity of stance should translate into clear foreign policy platforms. It will be a challenge, of course, to articulate those platforms to a largely hostile media. But Scott Walker has time to elaborate them and to present them as he sees fit. And not to worry when the media characterizes his “no comment”, or quiet doubts, on any given issue as a big stumble.

The media, basically on the left half of the political spectrum – obsess about Giuliani’s remarks about Obama’s asserted absence of affection for America ignore, or evade a fundamental certainty. As in the Bill Ayer’s debate over Obama’s relationship on a few sheets in Chicago amid the 90’s and up until 2002 with the previous terrorism, the issue is not whether Obama traded mystery handshakes with Bill Ayers, or had the PLO banner up on his residence divider back when. The issue is the essential philosophical standpoint that a Bill Ayers has and its relationship to his radical and fierce past; a viewpoint imparted by a critical piece of the scholastic, learned and media planets. Also the individuals who agree with them.

The Vietnam War was terrible, a bleeding slip-up as opposed to an exorbitant war that helped contain socialism in courses a long ways past the geographic limits of Southeast Asia. Reagan was a militarist as opposed to the President who brought peace to the world through American quality. The legislative issues of character are what matter as opposed to what one does and accomplishes, in light of the fact that this bigot entrepreneur planet must be switched from the beginning, at the same time being cautious as they are not to connection the expression “unrest” with the likelihood of brutality. Yet defending viciousness far and wide all in the meantime. As these previous and not really previous radicals joined the framework they had viciously restricted, despite everything they have comparable objectives which they now go about attaining to through the instruction framework, through the political framework, and through the media.

Ayers is an uncomfortable update for some who impart a large portion of his social equity objectives as a result of his past, however not due to his objectives. Also that gathering obviously incorporates President Obama. So when Guiliani lets his more confrontational side detached, despite the fact that what he really said was so affably expressed it appeared to be practically hesitant in its structure if not in its ramifications, he is only expressing the self-evident: Obama accepts that through procedure, and differences, and counsel you can settle most things in this world, including the scourge of terrorism. Also that process, differences, and counsel is vigorously bound with hard line reactions of America. From inside from individuals like Bill Ayers, and from without from everybody from European contingent associates to risky radical gatherings. That is the reason Obama needs to “proceed onward” from an emphasis on terrorism and its subsequent good objectives that request a reasonable position in light of terrorism’s barbarities. Maybe Obama’s amiable and huge “I” incorporates seeing himself as an extension in the middle of East and West. Between Islam, particularly Sunnism, and Christianity. As a honest prophet who helps Christians to remember their past sins as an individuals, as he did at a late petition to God breakfast. Patriotism, then again, is specific and divided by nature, on the grounds that it means affection for one’s own nation. An affection that is not adapted by the points of view of those of aversion or even despise the nation. How a president adjusts his or her patriotism with their occupation as pioneer of the free world is not a simple issue to judge. Anyhow it is not nit-picking or crazy to ask how devoted the man in the Oval Office is, or isn’t. What’s more to ponder what he truly accepts about Islam and its different fanaticisms.

Jeb Bush has to be president, and the subtle elements of what sort of president he will be can be worked out later. In any event that is by all accounts the disposition of a critical piece of the GOP. Simply take a gander at the surveys and choose who would do best against Hillary is the idea. The numbers and how to enhance them appear to command, for those contributors and previous Bush padre and Dubya counsels who are gearing up to help enhance or to be a part of Jeb’s group. What that says in regards to any arrangement stage that his group is cobbling together from thoughts long past due is not empowering. Catchphrases like Liberty and Strength have been heard before in altogether different times. To build remote approach with respect to columns like Liberty and Strength is estimable, obviously. Yet what that may mean practically speaking, on issues like movement, terrorism, exchange with Asia and Latin America, and also training at home, stays all that much to be seen.

Might it be able to be that some in the GOP, particularly Republican Senators, need Jeb in the race yet don’t fundamentally need him to win? That could be, yet the off camera huge cash contributors are now going to private gathering pledges suppers where they some of the time contribute up to $100,000 for the benefit of going to. Furthermore they are a refined bundle. Like Juleanna Glover, previous Cheney representative, who expressed that concerning progressives, “I don’t think they comprehend the Common Core issue.” So it really is great Jeb Bush will accommodatingly instruct them on the issue and bring them to the edified truth he is favored, as a child of benefit, to have. There is by all accounts a ton of hopefulness among Jeb supporters that once individuals get to know the applicant, they will hop on his decently financed fleeting trend. What’s more without a doubt a couple of suspicious representatives will do as such on the off chance that they feel the opportunity is correct. Concerning whatever remains of Republican voters who appear to be requesting a genuine change in Washington, their displeasure is something Jeb will inevitably need to face. Much within the near future. How his decently oiled temporary fad survives their burst of anger is an open inquiry. What other GOP competitors will do to pick up footing when, or if, Jeb’s secured wagons burst into flames is additionally an imperative inquiry. One that decently heeled cash figures in the GOP – numerous clearly from Blue States – ought to maybe ask themselves.

Do you need a good, bracing debate to finish off 2014 and start 2015 in fighting form? One that includes everything from state rights,through the limits to federal government, the future of the global economy and America’s role in it, passing on to inequality, education, and even whether tests are accurate measures? Why then, look no further than Common Core … again. It seems that Common Core will be an almost-third-rail topic in the next elections, especially within the GOP. Touch it and your chances of winning the party leadership could die, but touch it you must at some point if only with an accusatory finger, crooked in condemnation at what started as a science project and has by now morphed into one mighty beast.

Jack Hassard, writing in the National Education Policy Center’s website, seems to come from a fairly liberal perspective, but his criticisms of, or his quoting of studies that criticize, the PISA (Programme for International Student Assessment) results raise some interesting objections to Common Core and it’s obsession with American students’, especially 12th graders’, rankings. Quoting Iris Rotberg of George Washington University, Hassard points out the lack of strong statistical correlation between global competitiveness rankings and PISA results. Unsurprisingly, the US ranks far better in global competitiveness, and factors, as laid out by Rotberg, like incentives for innovation, tax rates, health care and retirement costs, government subsidies, protectionism, and intellectual-property rights, among others, matter far more than average science and math scores across America. No kidding. America is an enormous country in every sense of the word. Diverse, widespread, and seething with creativity. Very unlike top-ranked PISA star Singapore: a tidy relatively homogenous little island where freedoms are limited in many ways that Americans would find unacceptable. Science and math matter, a lot. But the best way to solve any reasonable failures, measured by far more than PISA rankings, is best not tailored in one standard straightjacket, made in D.C. Only the broadest guidelines should come from the federal government. Let each state be held accountable by its own voters on how well it handles education. Think about it. That means 50 fun debates on Common Core, and more importantly, 50 solutions to math and science shortcomings that might actually work. 50 solutions that will likely resemble each other far more than they differ. To ignore the problem of science and math under the guise of defending against an attack on state rights seems stubborn and short sighted. To use Common Core as a trojan horse for everything from imposed egalitarianism to politically correct cultural teachings is a frightening solution. Somewhere between those extremes, each state should help their students improve, reasonably and measurably, in science and math in the best way they see fit.

The media, mostly on the left side of the spectrum – fuss over Giuliani’s comments about Obama’s alleged lack of love for America overlook, or sidestep a basic fact. As in the Bill Ayer’s controversy over Obama’s relationship on several boards in Chicago during the 90’s and up until 2002 with the former terrorist, the issue is not whether Obama exchanged secret handshakes with Bill Ayers, or had the PLO flag up on his dormitory wall back when. The issue is the basic philosophical outlook that a Bill Ayers has and it’s relationship to his radical and violent past; an outlook shared by a significant part of the academic, intellectual and media worlds. And those who agree with them. The Vietnam War was bad, a bloody mistake rather than a costly war that helped contain communism in ways far beyond the geographic boundaries of Southeast Asia. Reagan was a war monger rather than the president who brought peace to the world through American strength. The politics of identity are what matter rather than what one does and achieves, because this racist capitalist planet has to be changed from the ground up, all the while being careful as they are not to link the word “revolution” with the possibility of violence. But justifying violence around the world all at the same time. As these former and not-so-former radicals joined the system they had violently opposed, they still have similar goals which they now go about achieving through the education system, through the political system, and through the media.

Ayers is an uncomfortable reminder for many who share most of his social justice goals because of his past, but not because of his goals. And that group clearly includes President Obama. So when Guiliani lets his more combative side loose, although what he actually said was so politely phrased it seemed almost timid in its form if not in its implications, he is merely stating the obvious: Obama believes that through process, and diversity, and consultation you can fix most things in this world, including the scourge of terrorism. And that process, diversity, and consultation is heavily laced with hard line criticisms of America. From within from people like Bill Ayers, and from without from everyone from European conditional allies to dangerous radical groups. That’s why Obama wants to “move on” from a focus on terrorism and its consequent moral imperatives that demand a clear position in response to terrorism’s atrocities. Perhaps Obama’s affable and enormous “I” includes seeing himself as a bridge between East and West. Between Islam, especially Sunnism, and Christianity. As a righteous prophet who reminds Christians of their past sins as a people, as he did at a recent prayer breakfast. Patriotism, on the other hand, is particular and partisan by nature, because it means love of one’s own country. A love that is not conditioned by the perspectives of those of dislike or even hate the country. How a president balances his or her patriotism with their job as leader of the free world is not an easy issue to judge. But it is not nit-picking or insane to ask how patriotic the man in the Oval Office is, or isn’t. And to wonder what he really believes about Islam and it’s various extremisms.

Over the next weeks and months the Court of Appeals for the Fifth Circuit in New Orleans will hear the appeal of Judge Hansen’s decision and the issue of whether Texas and the other plaintiff states have standing in the case will be one of the central issues. And apparently, the precedents do not look promising for Texas. Rulings by SCOTUS on Arizona’s attempts to give broader scope to it’s officials to enforce immigration law, rejected those attempts and instead confirmed broad discretion on the part of the federal government in executing immigration law. The cost that additional immigration arising from the amnesty – or DAPA in this case – will impose on states like Texas is not enough to give them standing according to much of the prevalent legal opinion. In other words, the White House – and Congress assuming it can eventually agree on some form of legislation, not even necessarily one that involves the dreaded “immigration reform” – will decide the how and when and why and the states will have to take care of the daily details of integrating illegals into the legitimate economy.

Why such disdain for the very real costs, in areas like education and health, born by the states most affected by illegal immigration? Aside from the natural tendency of the judiciary to jealously guard it’s ample territory, there seems to be some good old fashioned liberal hypocrisy at work here. As Daniel Fisher in his piece in Forbes points out, SCOTUS had no problem giving states standing when they sued the EPA over the costs of pollution. But apparently they do not have standing over the costs of immigration. In fact, judge Hansen deliberately pointed out a series of past rulings that do suggest that the states in fact bear the cost and responsibility of increased levels of immigration. In 1982’s Pyler vs. Doe the Supreme Court forced states to provide public schooling to children of illegals. It was a first step in providing an increasing number of state-paid benefits to illegal residents. And it clearly shows that states do bear the burdenoif illegal immigration. Any policy as massive as an amnesty for millions will deeply affect state budgets. But standing is a precious commodity doled out sparingly by an all powerful Supreme Court. The results of the appeal to the Fifth Circuit and likely on to the Supreme Court seem to favor Obama. And he knows it. But this challenge is only one of many and will return again and again one suspects. It cuts across judicial power, state rights, and the constitution itself. Someday, standing must be given to states, when affected, in a fair and balanced manner, rather than selectively allowing them into the hallowed halls of the Supreme Court if they are on the currently correct side of an issue.

With U.S. District Judge Hansen’s blocking of President Obama’s executive action on deportations, the profound consequences of Obama’s amnesty once again is front and center in the media. And it should be. The lawsuit launched by a coalition of 26 states, conservative more than not and southern more than not, has found an ally, at least for now, in the judicial system. Acknowledging the irreversibility of the amnesty, should it become actual policy which is to be enforced, Judge Hansen reminds us that immigration policy is at a point of no return. Not only for the millions of illegals who will become legals, but also in terms of the constitution itself and what executive action should and does mean.

At the core of the lawsuit is the so-called Take Care clause of the constitution: that the President has a duty to faithfully execute the laws. Section 3 of Article 2 has been open to interpretation, as they say, and has been the subject of interpretations that would severely limit the President to merely faithfully overseeing those charged with executing the law, to those interpretations that say the President has substantial leeway to decide when and how any law will be executed. History has many examples of the executive delaying implementation of laws or not enforcing a law every time there is a violation.

Obama’s amnesty has placed the issue of the modern US Executive Power in a harsh light. Schlesinger’s Imperial Presidency has been with us since Roosevelt took power away from the Cabinet and built up departments and offices of advisors that are the real power behind the throne, with some exceptions when a Cabinet figure is an unusually strong willed personality. But even then, the West Wing always seems to win. And now we have what is essentially a presidential pardon for nearly 5 million lawbreakers because of “commonsense policies to help fix our broken immigration system” in the words of Josh Earnest. The lawsuit launched by the 26 states seems to clearly suggest this is a complete abandonment of the Take Care Clause, while on Obama’s staff, the legal minds are likely to put together a defense suggesting the Take Care Clause allows such flagrant behavior on the part of the President. To allow a pause to legally consider the constitutionality of the amnesty before enacting such a massive pardon seems to be the real commonsense policy. And if a weaker executive emerges from this lawsuit, so be it.

The to-be-released Senate report on CIA interrogation techniques, and possible violations of al-qaeda suspects’ rights under said interrogations is angering many in Washington, including those in the intelligence community. Charles Krauthammer asks the obvious question “what is to be gained here?” and those critical warn of risks to both allies, intelligence agents and military personnel abroad. While one can speculate on the exact motives of the White House for insisting on the report’s release, the question underlying the fuss is simple: do suspected terrorists enjoy ample human rights protection? Especially when being interrogated? Those who insist on an absolute yes have no place in any debate. They are the same who suggested we look carefully into our own hearts in the days after 9/11, and generously apportioned blame for the attacks on America itself and not on the crazed, medieval fanaticism of islamic extremists. Those who insists on an absolute no risk alienating local allies in the Middle East and elsewhere and isolate America in its efforts to contain and, God willing, bring an end to this type of terrorism.

So the question becomes one of balance, a seemingly impossible balance at times, between the intelligence community’s legislated duty to defend the nation, and a minimum acceptable guarantee of some form of due process and rights for those who may have life-saving information and are unwilling to share it with the CIA and other intelligence agencies. The techniques involved may not be very comfortable, even rather painful both physically and psychologically, and they are designed to be so. But they must be effective at the same time, and not produce confessions that lack credibility, and are given by desperate witnesses who have endured extreme pain. That this balance has been endlessly studied and quantified by the intelligence communities is beyond any doubt. That the balance should be up to the intelligence community itself is not a good idea, however. That means Congressional and even judicial oversight of some form. But with that oversight comes the responsibility to not endanger the very purpose of these interrogations. The release of a sensitive report by a lame duck Senate does precisely that; endanger future intelligence gathering efforts, as well as lives of intelligence agents, military personnel and others overseas. When all countries in the Middle East, Asia, Africa, and Latin America enjoy stable representative democratic governments with an independent judiciary that pursues and punishes terrorism, the intelligence community will have to provide the commensurate degree of transparency. That time is a ways off. America’s intelligence agencies already operate under judicial and congressional constraints, constraints that may have played a part in 9/11. A flexible system of oversight that allows them to operate but holds them accountable is a good idea. An unwarranted release of potentially dangerous information is not.

Sarah Hooker of the Migration Policy Institute, a think tank on immigration that professes an independent stance, has a forward looking attitude. “Of course border and immigration policy has an impact on schools. But we can only talk about border policy going forward. Education is one of the basic services states have to provide.” In other words, according to Hooker and the Migration Policy Institute, and many others, the illegals already in the country is a done deal. It’s over. It’s done. You can argue how to integrate them into society, and how to pay for things like public schooling, but not whether illegals should be integrated or deported. And the reason is not merely a liberal attitude towards immigration, but rather a matter of logistics: you can’t possibly deport millions of them, or even a significant percentage. So you have to accept one of largest collective violations of law ever. The border is a logistical construct defined by economics and social policy, not a constitutionally defined limit, according to this widespread view.

This sets a precedent – likely a constitutional one should any legislation that is finally passed by Congress and not vetoed by this or any other President be challenged by one side or the other in court and should it reach the SCOTUS – which makes the constitution conditional in essence. If a problem is too tough, and too expensive, and involves too many people, then the law will have to be bent or even ignored. And when that happens immigration activists will attempt to have the right of free movement across international borders legally defined and enshrined. The 1948 Declaration of Human Rights already lists freedom of movement as a right, but only a right to move freely within one’s country, to leave one’s country freely, and to return to one’s country freely. The right to enter a foreign country freely was understandably left out and it is this missing piece of the puzzle that the activists are looking to have enshrined and then enforced. And what a wonderful precedent do we have in the USA! Activists like open borders’ John Lee writes in his blog, “Of course, we would always abolish or minimize border controls, as literal open borders would suggest. But we would also simply offer visas to anyone who applies for them, (subject to standard exclusion for people bearing diseases, weapons, or criminal intent of course.)” Aside from quibbling semantically over how a border guard would detect someone “bearing criminal intent” in John Lee’s utopia, we have the view that it would be a routine matter controlling for disease, guns, and criminals in a world where all applicants get a visa.

Obama, won’t quite say it, but we are a lot closer to John Lee’s world than we realize when we take a logistical rather than a constitutional view of the nation’s borders. And it bears repeating that many in the business community essentially share the logistical view of the border. This is a key time for defining what America’s borders actually mean and what a nation’s border actually means across our globe. Emerging GOP candidates like Scott Walker are already backpedalling on previous comments over the border and immigration. Walker should realize that even if Wisconsin seems like a long way from Arizona and the border with Mexico, that border is a lot closer to his home state than he had realized. Maybe Scott Walker should read John Lee’s blog. And think a little about where he stands on immigration.

Byron York is right to mention that foreign policy may be far more of an issue in the 2016 race than strategists, pundits, and candidates have predicted until now. The economy is still important and healthcare is a hot-button issue as is immigration, but they may not top voter concerns as previously expected. That means GOP candidates have some catching up to do considering Hillary’s experience as Secretary of State, according to York. At this point in the argument that York develops, one suddenly has an urge to pause. As does York at the very end of his piece in the Washington Examiner where he points out that it’s vision, not experience, that matters to voters.

And matters in the real world. One remembers, for those who remember, Jimmy Carter’s dramatic warnings about a Reagan presidency during the final stretches of the campaign in the fall of 1980. An unproven “extremist” who would lead the world down a dangerous path. In fact, it was Carter’s bumbling if well-meaning as well as ideologically unsuited foreign policy that had led the world to a dangerous place by the late 70’s. Or more accurately, his policy was a weak response to a dangerous world in which Soviet strength was predicted to last for generations. Reagan took a tough and clear stance and the Soviet apparatus fell apart within a decade. That’s a historical fact. It was both a moral, or ethical if you wish, and a pragmatic posture, and he had previously signaled it with his brilliant “farewell” speech at the GOP convention in 1976, where a very experienced Gerald Ford won the nomination and bumbled his way through the campaign, losing to Carter.

Vision requires courage and coherence and is in even more short supply nowadays in a world dominated by fine-tuning of policies and “nuanced” responses to dangers around the globe. And it’s hard to predict who might have that precious quality that any CEO, especially the President, requires to be successful. While the issue of national security and foreign policy can and will leak into or wash over the coming campaign, voters need to feel they have a candidate who really cares and really does have a viewpoint that they can trust. And not someone who hands out responses cobbled together by poll-reading strategists. That strategists are vital, and that they read the polls, is obvious. But any candidate has to rise above the policy details and present themselves as true leaders. Character still matters and one hopes that people like John Bolton, if they do enter the race in order to shine a light on the issue of national security, will provoke responses from the other candidates that reveal something of their character. Whether it’s foreign policy, or economic policy, or healthcare, or immigration. Character still matters. In fact, it’s one of the most important assets a candidate brings. Not popularity or media savvy, as necessary as they may be to get elected. And not a narcissistic selfie about their personal story that leaves you wondering who in the world got elected to the Oval Office.

The White House is worried they may offend Iran. As reported in Politico, Samantha Power, ambassador to the UN, stated “We in the administration believe that at this time, increasing sanctions would dramatically undermine our efforts to reach this shared goal.” The shared goal being the reduction of Iran’s nuclear capabilities. Samantha Power is the Irish-born, Harvard-educated human rights advocate who in the heat of the nomination battle called Hillary a “monster” in an interview with The Scotsman done in London, England. The self-righteous globe trotter has had a great deal of influence on Obama’s foreign policy outlook, having worked with him since his days as a freshman senator. She pulled the rookie into Darfur and argued for military action in Libya – which is good – but she also seems to be behind his current insistence on using the presidential veto against the Iran sanctions that Congress has put together – which is not so good.

The problem of negotiating with an adversary that uses violence and terror has been studied through the analytics of game theory for decades now, increasingly so since 9/11. One can quibble over whether the current regime in Iran is strictly terrorist. The fact is, however, that Iran has supported, financially and tactically, terrorist islamic organizations for decades. That means that in reaching a nuclear deal with Iran, you are dealing with a regime that has close ties to terrorism, whether the current top officials are part of the loop or not. How do you negotiate with such a regime on an issue as vital as nuclear capability? Terrorism and Game Theory, a paper by USC’s Todd Sandler and Rhodes College’s Daniel Arce, states that “each adversary acts on the beliefs of the opponents anticipated actions.” And uncertainty caused by power struggles between the moderate and fanatical factions within any terrorist organization lowers visibility on the part of the government negotiating with the terrorists. As well, in negotiation theory there is what is called the Best Alternative to a Negotiated Agreement, or BATNA. What this means is do you have a back-up plan if negotiations fail and is it credible? A BATNA is often used in fact as leverage in negotiations and not just a a safety net. Or as Senator Menendez put it, ” a credible threat of future sanctions will require Iran to cooperate and act in good faith at the negotiating table.”

It’s not as if sanctions are a new and radical policy change. Iran has had sanctions imposed on it by the EU, Canada and of course the USA for years now. The current bill would step up the pressure to another level, that’s all. So why is Obama so touchy on the issue? Does Samantha Power have his ear to such an extent that anything that doesn’t fit with Kennedy School of Government policy perspectives gets dismissed out of hand? The President needs to remember who he is dealing with in Tehran and what they have been and are capable of doing, and turn his ear away from his advisor’s whispers just a little.

The White house wants a lot more money for financial services regulators, as in the SEC and especially the Commodity Futures Trading Commission, or CFTC. The latter would have its budget boosted by 29% to $322 million, while the SEC’s budget would increase by 15% to $1.7 billion. Yes, billion. Why all the extra cash? Essentially, it’s a give back to Wall Street done in December’s cromnibus bill, where some derivatives trading would no longer be pushed out to separate entities that are not covered by the FDIC. In other words, your bank deposit insurance would continue to cover complex high-risk derivatives transactions undertaken by large financial entities. And that means regulators like the CFTC as well as the SEC screaming for more cash to do all that overseeing. The CFTC’s mission statement heroically proclaims that the Commission’s job is “to foster open, transparent, competitive, and financially sound markets, to avoid systemic risk and to protect the market users and their funds, consumers and the public from fraud, manipulation, and abusive practices, related to derivatives and other products that are subject to the Commodity Exchange Act.”

A piece of cake really and that $322 million budget should help. Especially considering, as they themselves state, that the notional value of the swaps market over which the CFTC has oversight is about $400 trillion. But wait, the notional value is not what you need to worry about. You take a tiny percentage of that, say 15% which represents the maximum change in the notional value in response to a big move. In other words, the amount of money you could lose in a worst case scenario. Heck, lower that to 10% and you wind up with a mere $40 trillion risk from swaps alone. We’ll assume that’s worldwide of course, but most swaps are done in US dollars and are thus the purview of the CRTC. So that merely adds up to the combined economies of the USA, China, Japan, Germany, France and the UK. Piece of cake really. You can now sleep easy knowing those extra $72 million that boosted the CFTC’s budget from around $250 million up to $322 million will take care of the problem.

Of course there’s a much much larger pot of money that’s really at stake. It’s called your current and future tax dollars and what Wall Street has done by reversing the push-out of some derivatives to separate entities, is to ensure that should another meltdown around swaps and other derivatives occur, the US government will once again rescue them with as much taxpayer funded bailouts as necessary. There is no question that moral hazard – the lack of consequences for risky behavior and the subsequent increase in risky behavior in response to the lack of consequences – in the financial industry is a huge problem and one that must be solved without taking down everyone’s savings in the process. So Elizabeth Warren was right to protest back in December and it’s not surprise that Obama is asking for more cash for the SEC and the CRTC.

The problem is Warren would have the financial industry so bound up in regulations that it would risk sucking the life and innovation out of the credit markets. How much risk, how much pain Wall Street should endure in order to ensure it does not risk the world financial system again is a tough question to answer. But the trade-off is clear: if you have a freer world where people can bet on swaps and other derivative purely for speculative purposes rather than for hedging future production, then you have to allow the speculators to go down when their bets go wrong. If you have a controlled world where any derivative has to be based on an actual good or service that is to be sold or bought, then you give up some of that freedom and hand it over to the CRTC, the SEC, the IRS, and countless other agencies. Where to balance between these 2 poles is almost impossible to answer, but we have no choice but to try. And to do it in a far more transparent way then the fast one pulled by Congress in December.

Get Your Stamp Here


Filed Under Latest News on Feb 2 

Alex Nowrasteh, comfortably ensconced in Virginia with his gun collection, wants open borders, The “smart” way to secure the border is not through fences or “other security gimmicks” according to the undoubtedly bright libertarian who now publishes at the CATO institute, but rather through a guest worker visa program. A return to the Bracero agricultural guest worker visa program that lasted from the mid-50’s to 1965, is basically what Nowratseh, son of Cyrus of Path to 9/11 fame, is calling for. What an elegant, neat idea that hopefully should fix what is now a “trivial flow” of “unlawful” immigrants. The London School of Economics grad seems to think that fine-tuning the economic incentives will make building a border security system that is hard to penetrate unnecessary. A guest worker visa program will ensure that business gets the (cheap) labor they need and will “drive would-be illegal immigrants into the legal system.”

In other words, just give the “trivial flow” of illegals a temporary visa and you fix the problem. Border patrol agents chasing down clusters of illegals crawling through the hard-scrabble, in say Arizona, to make sure their paperwork has all the right stamps? Or rather, they would hopefully just line up at the border checkpoints to get the stamps. And when the visas expire? And when the trivial flow turns back into a flood as a result of the very guest worker visa program? Or as a result of hard times in Mexico and an improving US economy? What Nowrasteh is doing is taking half of Colorado Sen. Cory Gardner’s two-pronged plan to increase border security in conjunction with a guest worker visa program. The reason Gardner’s plan is more feasible is that you have a critical mass of somewhere over 12 million illegals, your guess is as good as anyone’s, about half of them from Mexico, already in America. That community in and of itself creates a large pull factor and makes comparisons with the Bracero program over 50 years ago less sustainable. A guest worker visa program without a significant improvement of border security would open the floodgates to an unknown extent.

The underlying problem is the enormous difference between Mexico and the USA. This is not close to being equivalent to say, Greece and Germany. The difference in GDP per capita between the USA and Mexico is almost $43,000 That’s only the difference. That means that America’s GDP per capital is almost 4 times Mexico’s. Germany’s is slightly more than double Greece’s. The difference between Turkey and Germany is similar to the US-Mexico divide, and guess what? Turkish immigrants to Germany now make up about 3.7% of the population and number about 3 million. An equivalent proportion in America would mean over 11 million Mexican immigrants in the USA. Estimates of the total number of illegals vary, for understandable reasons, but take a conservative estimate like the Pew Center’s that estimates about 6 to 7 million illegals from Mexico alone. If a guest worker visa program has a similar effect to what happened in Germany, that would mean a near doubling to around 11 million. And that’s not counting those from Central America. These are all merely estimates, however, and the outcome of a guest worker visa program is uncertain, aside from the fact that it would be a tremendous pull factor. But that’s ok with Nowrasteh, he just wants to open up the borders and give everyone a stamp.