18.3.14

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Ron Paul vs. USA Today on Crimea; Reflections on "High Costs" of USA Today Proposal

Posted: 18 Mar 2014 08:16 PM PDT

A pair of articles on USA Today, one by Ron Paul, the other the view of the editorial board of USA Today, proves that even when the facts are laid out, hypocrites remain hypocrites.

Ron Paul's View

Crimea Secedes. So What?
Residents of Crimea voted over the weekend on whether they would remain an autonomous region of Ukraine or join the Russian Federation. In so doing, they joined a number of countries and regions — including recently Scotland, Catalonia and Venice — that are seeking to secede from what they view as unresponsive or oppressive governments.

These latter three are proceeding without much notice, while the overwhelming Crimea vote to secede from Ukraine has incensed U.S. and European Union officials, and has led NATO closer to conflict with Russia than since the height of the Cold War.

What's the big deal? Opponents of the Crimea vote like to point to the illegality of the referendum. But self-determination is a centerpiece of international law. Article I of the United Nations Charter points out clearly that the purpose of the U.N. is to "develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples."

Why does the U.S. care which flag will be hoisted on a small piece of land thousands of miles away?

Critics point to the Russian "occupation" of Crimea as evidence that no fair vote could have taken place. Where were these people when an election held in an Iraq occupied by U.S. troops was called a "triumph of democracy"?

Perhaps the U.S. officials who supported the unconstitutional overthrow of Ukraine's government should refocus their energies on learning our own Constitution, which does not allow the U.S. government to overthrow governments overseas or send a billion dollars to bail out Ukraine and its international creditors. ...
USA Today Editorial Board View

Show Putin the High Cost of Conquest
When President Vladimir Putin addresses Russia's parliament Tuesday, he will almost certainly announce, just two weeks after a remarkably bloodless invasion and just two days after Sunday's secession vote, that Crimea is rejoining Russia.

Most Russians and Crimeans, bursting with patriotic pride, will cheer, egged on by Putin's propaganda machine, which had crushed dissenting voices. The mild sanctions imposed by the Obama administration and Europe, to protest Russia's seizure of Crimea from Ukraine, will be dismissed or ignored.

So far, the Obama administration, with no military option, has responded appropriately: rallying allies, preparing an escalating series of economic sanctions and pressing Putin diplomatically. But threats need teeth to be credible, and Putin will relent only if he believes that his actions will have devastating consequences.

The immediate step, freezing assets of a few officials close to Putin, is a minor warning shot. The firepower can by multiplied many times by imposing embargoes, cutting Russia off from the international banking system or other measures — if Europe is willing to bear the cost. ...
Reflections on "High Costs"

Notice how the USA Today editorial board want to show Putin the "high cost" when in actuality it would be Europe that must be willing to bear the cost, not the US. Russia can and would shut off natural gas delivery to Europe if the USA Today got its way.

And speaking of "high cost of conquest" the USA today ought to mention we wasted trillions of dollars in Iraq and Afghanistan  with virtually nothing to show for it but a mountain of debt and well-warranted global hatred of US war-mongering.

The US learned nothing from Vietnam, nothing from Iraq, and nothing from Afghanistan.

Warmongers like McCain think the solution to this mess is sanctions coupled with sending missiles to the Czech Republic. 

History Lesson

The USA Today also ignores history. Crimea was given to the Ukraine by Nikita Khrushchev in 1954. Was that gift constitutional? Putin makes a very reasonable claim that it wasn't.

As long as we are discussing history, inquiring minds just may be interested in European Border Changes Over Last 1000 Years.



Link if video does not play: European Border Changes over Last 1000 Years

US Hypocrisy

The US is quite willing to have a vote, provided the vote is going the way the US wants.

And speaking of votes, where were the US hypocrites when technocrat after technocrat leader was installed in Italy and Greece undoubtedly against the constitution of those countries, without a vote.

The US bombed into submission Iraq and Afghanistan halfway around the globe but protests when Russia protects its clear military interests on its own border, a border that was given away (most likely unconstitutionally).

Now we protest the vote was not fair and was against Ukraine's constitution. Please spare me the sap.

I am tired of US warmongers and hypocrites who think "might makes right" but only when it is the US leading the aggression.

1000 years of history as well as an ounce of common sense says this is not our battle. We should stay out of it.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Union Goon-Squad "THUGs" Own Pennsylvania (Literally)

Posted: 18 Mar 2014 01:27 PM PDT

A "goon-squad" group named The Helpful Union Guys (THUG), members of Ironworkers Local 401 set fires, started riots, and took crowbars to the competition in an effort to protect union jobs.

THUGs stalked women, took baseball bats to a Toys R Us site, and even torched a Quaker meetinghouse that dared to use non-union labor.

Philly.Com reports 10 leaders of Ironworkers Local 401 charged in racketeering indictment.
They called themselves "the Helpful Union Guys" - "THUGS" for short - and woe awaited any contractor who dared cross them by hiring non-organized workers.

For, federal authorities alleged Tuesday, this "goon squad" of members of Ironworkers Local 401 set fires, started riots, and took crowbars to the competition in an effort to protect union jobs.

FBI agents arrested 10 of the union's leaders Tuesday morning, including longtime head Joseph Dougherty, in a racketeering conspiracy case that appeared to affirm long-standing business complaints over the tactics employed by Philadelphia unions.

Prosecutors alleged that Dougherty and others have cost contractors hundreds of thousands of dollars over at least three years, and were indiscriminate in choosing their targets - equally willing to break skulls with baseball bats at a Toys R Us work site in King of Prussia or torch a Quaker meetinghouse under construction in Chestnut Hill.

According to the 49-page indictment, Dougherty, 72, coordinated the campaign of sabotage and extortion, urging members to picket, threaten, and destroy the property of contractors who ignored threats against hiring nonunion employees.

At the meetinghouse work site, prosecutors said, three union members cut steel beams and set fire to a crane in December 2012, setting the project back weeks and costing the contracting firm, E. Allen Reeves Inc. of Abington, more than $500,000.
Several state representatives who received money from THUGs donated it to charity.

Proving he is willing to be bought and owned by unions, State Rep. Brendan Boyle, a Democrat running for Congress in Pennsylvania's 13th District - defended the ironworkers' contribution of $10,000 to his campaign last year.

End Union Thuggery

An article in today's Philly.Com by Katie Packer Gage says End Union Thuggery.
There is something gravely wrong in our nation when government sanctions the intimidation and bullying of one group of people by another. But that's exactly what is happening in Pennsylvania.

Sarina Rose, an executive vice president for development for Post Brothers Apartments, was stalked and harassed by union organizers. Protesters persistently followed her throughout her private life, even taking photos of her children, ages 8 and 11, at their bus stop in Abington. The situation dramatically escalated when "one union leader loudly cursed at her in front of a packed restaurant and mimicked shooting her," according to an Inquirer report last month.

What had Rose done wrong? Nothing, but she was part of a company that elected to hire a mix of union as well as nonunion labor to complete a construction job.

Unfortunately, the authorities could do nothing. In Pennsylvania, union workers are allowed to act with impunity against citizens, and it has been approved by both the legislative and judicial branches of government.

As The Inquirer reported: "Thanks to a little-known provision protecting parties in labor disputes from prosecution for stalking, harassment, and terroristic threats, Rose said, she was left powerless to stop the nearly constant baiting. The men who dogged her at all hours walked free."

In August, some members of the Pennsylvania General Assembly introduced legislation to remove the exemptions permitting certain types of harassment in labor disputes. Unfortunately, the bill has not progressed since receiving committee approval in October, in large part because the state Fraternal Order of Police came out aggressively against it.

Fortunately, we do not live in a country where veiled threats of murder, like those directed at Rose, can be made without someone standing up for the rule of law. We live in a country that requires equal protection for everyone. Pennsylvania law, however, denies such protections to victims of union thuggery under the false pretext of protecting free speech.

In March 2013, I addressed this issue in the Pittsburgh Tribune-Review: "This special 'carve-out' grants union organizers the ability to disrupt the business of ... local employer[s], trespass on their property, and violate their personal property rights. In essence, it gives unions license to 'obsessively pursue' individuals 'to the point of harassment.'"

Pennsylvania's elected officials should immediately pass legislation removing any exemptions to stalking and intimidation laws. Protecting the state's citizens is an obligation, not a choice.
Source of Union Power

As I have mentioned on numerous occasions, unions get their power via threats, intimidation, coercion, bribery, and cash contributions to corrupt politicians.

There is no excuse for such actions from unions.

Yet, threats and even stalking of women by union thugs it is not only tolerated but protected by state statute.

As one might expect from corrupt politicians on the take, rather than change the law, legislators backed off after the biggest goon-squad of all, the Fraternal Order of Police, fought the measure.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Treasury Department Places "Real Value" on Digital Currencies, Sees No Widespread Criminal Bitcoin Use; Virtual Currency Rules Coming Later This Year

Posted: 18 Mar 2014 10:46 AM PDT

In statements that all but endorse bitcoin and digital currencies, Treasury's Cohen Sees No Widespread Criminal Bitcoin Use.
The U.S. government sees no evidence of "widespread" use of virtual currencies such as Bitcoin to evade sanctions or finance terrorism, the Treasury Department's top official targeting money laundering said.

"Terrorists generally need 'real' currency, not virtual currency, to pay their expenses -– such as salaries, bribes, weapons, travel, and safe houses,' David S. Cohen, the undersecretary for terrorism and financial intelligence.

''The same is true for those seeking to evade sanctions,'' Cohen said in a speech at the New York headquarters of Bloomberg News.

Cohen rejected arguments that regulation would drive virtual currency innovation out of the U.S., saying ''the opposite is true'' in this new industry.

''Financial transparency can help bring stability to the virtual currency market and security to its users and investors,'' Cohen said. ''And that is what we are trying to do through sensible, flexible and -– to use a word from the tech world -– scalable regulation.''

At the same time, Cohen emphasized that the government would err on the side of squeezing innovation if necessary for law enforcement purposes.

Cohen said that the Treasury Department places "real value" on financial innovation such as digital currencies.

"Advancements in technology that allow entrepreneurs and businesses to innovate, grow and hire are crucial to our country's long-term success," Cohen said.

Cohen has served as undersecretary since 2011. He first joined the Treasury in 1999 and, while working for its general counsel, helped draft part of the Patriot Act that granted the regulator new tools to thwart money laundering and terrorist financing after the Sept. 11 attacks.

New York financial regulators also have been working on a response to Bitcoin. Benjamin Lawsky, the state's superintendent of financial services, announced last week that his office is accepting applications to operate exchanges for Bitcoin and other digital currencies. He plans to propose a set of rules for virtual-currency firms by mid-year.
As I stated before, bitcoin is here to stay. Wall Street wants High Frequency Bitcoin Trading and the Treasury has taken a hands-off approach.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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