Obama Budget--More Money to Financials:President Obama's budget request has been released (
http://www.bloomberg.com/apps/news?pid=20601087&sid=a9ZpGFQikqp4&refer=home). President Obama proposes that spending be increased 33% to $3.94 trillion. Mr. Obama's budget also calls for a $1.75 trillion dollar deficit. Mr. Obama proposes raising new tax revenue as a means to help pay for his increases. The Obama proposal suggests raising the top two marginal income tax rates to 39.6 percent and 36 percent, limiting itemized tax deductions, and increasing taxes on capital gains to 20 percent from the current 15 percent. We are in the midst of a "slowing" of the economy so according to a prominent school of economic thought increased government spending is a good way to support the economy. No comment in this trying times. I am no economics expert so I don't have any substantive insight.
But I do have a comment on one major piece of the proposed budget. Mr. Obama's budget also requests $750 billion contingency bailout fund for the financial industry! There are two major reasons this disturbs me: 1) The economics of these bailouts--can we afford them? Another 3/4 of a trillion dollars for Wall Street? Hasn't the government (and the American taxpayer) already bailed them out? Where is this money coming from? How will we pay for it? 2) The vast amounts of money being handed over to the executive with little or no oversight is very disturbing. I am suspicious of federal agencies for both legal and efficiency reasons... We are already trusting appointed administrative agency heads with unprecedented amounts of money. We are already trusting agencies to manage the entire financial system with little oversight or transparency. Another $3/4 trillion? Wow.
Oh, don't forget $634 billion down payment for universal healthcare.
President's budget plan will cut deficet in half by the end of his (first?) 4 year term(
http://www.cnn.com/2009/POLITICS/02/26/budget/index.html).
Update:
CNN: Wolf asking, "What's wrong with those who can afford it paying a little more?"
Republicans respond:
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/26/AR2009022602822.html?hpid=topnews. "This is really big government," said Rep. Paul D. Ryan (R-Wis.), the ranking GOP member of the House Budget Committee. He is right--bailouts, universal healthcare, and increased taxation.
Obama AG Holder calls for "just a few gun related changes":Attorney General Holder wants to make a couple little changes to current gun laws. He claims that Heller (
http://en.wikipedia.org/wiki/District_of_Columbia_v._Heller) permits, "closing the gun show loophole, the banning of cop-killer bullets and I also think that making the assault weapons ban permanent," (
http://abcnews.go.com/Politics/Story?id=6960824&page=2). Mr. Holder than links an U.S. weapons laws to reducing violent crime in Mexico (violence in Mexico gets its own little entry below).
The Supreme Court's recent interpretation of the 2nd Amendment in Heller recognizes an individual citizen's right to bear arms subject to what Justice Scalia calls, "reasonable restrictions." Reasonable restrictions can mean many things to many people. Reasonable gun laws are in the interest of everyone and are certainly within the police powers of the state (although I do have concerns as to whether the federal government has the power to regulate guns under the Commerce Clause). Too often gun regulations become ineffective feel good measures which do not actually increase safety and penalize legal gun owners.
I suspect the A.G. and I have very different ideas as to what constitutes a reasonable gun law, but we do agree that reform is needed. The 2nd Amendment speaks of a "well regulated" militia. Mr. Scalia's opinion solidifies the right of the citizenry to keep and bear arms--the legal right to own and use a gun--but the Court's opinion leaves open the question of what reasonable restrictions consists of. Another question left unanswered is what standard of constitutional review should be used when examining gun laws which are purported to violate the 2nd Amendment (standards of review are the lenses with which the Court a legal issue, it uses them to deciding what level of scrutiny to apply to a law might to violate the Constitution).
My answer to these questions is below (I'm a hypocrite, it is unlikely my regime could only pass Constitutional muster without the Commerce Clause power I disparaged above):
1) federal firearms law explicitly preempts state law. The standard of review should be "intermediate scrutiny," (as used in
Craig v. Boren, 429 US 190 (1976)). The Court would decide if the law or regulation involves an important governmental interests that are furthered by substantially related means.
2) instant federal background checks for any firearms purchase anywhere in the U.S. utilizing the existing background check system. All sales must take place at a federally licensed firearms dealer (FFL) who shall conduct the instant background check. No sales to felons, crazy people, those with violent misdemeanor convictions, or mental illness. Must show state or federally issues ID, and be a citizen or legal alien.
3) Allow purchase of any shotgun, rifle, or non-assault rifle by anyone meeting the above criteria. Require a handgun safety certificate for any pistol or revolver purchases along with a ten day wait for those who do not have a Concealed carry/Assault rifle permit (described below). Certificate would involve a (brief) basic safety and legal test and safe-handling demonstration and would be valid for a determined number of years (this idea is loosely based on CA's system
http://ag.ca.gov/firearms/hscinfo.php).
4) Concealed carry/Assault rifle permit: must meet all the qualifications of #2, and complete a mandatory safety, legal, and safe firearm handling class, a safety test, fingerprinting/biometric scanning, and be issued a tamper proof, biometric federally permit which includes this data and the holder's place of residence. The holder would then be able to purchase so-called assault rifles (i.e. semi-automatic, high capacity rifles, under .50 caliber, military style etc) and (almost) any handgun for concealed carry. All assault rifles and pistols to be concealed carried must be registered in a federal database which includes make, model, caliber, serial number, and other pertinent data. Concealed carry permit must be carried at all times when carrying or transporting a registered weapon in public.
5) Machine Gun permit/manufacturer's permit: high fee, all requirements as previously mentioned. Longer waiting period pending ATF approval and more extensive background check. Cities, counties, and states may elect to forbid machine guns permits in their jurisdiction.
Update:
Already causing problems for moderate Dems from right-leaning states (
http://www.sltrib.com/ci_11792204).
Pelosi satisfied with current laws?
"No, but I think on that score, one good place to start would be to enforce the laws that are on the books right now. And I think the evidence points this out, that the Bush Administration was not enforcing law. So let's start with enforcing the law that we have now."
(
http://firstread.msnbc.msn.com/archive/2009/02/26/1812279.aspx)
Drug War on the Border:Here in the U.S. the "War on Drugs" is largely a metaphor for a law enforcement and rehabilitation operation. In Mexico there is truly a war being fought; a war between drug cartels (and the judges, police, and soldiers they control) and the Mexican federal government. Mexican government estimates claim that 7,337 people have been killed in the violence since 2007. The Mexican federal government has responded by deploying 45,000 soldiers and 5,000 federal police in 18 Mexican states. Government officials, judges, and police officers are frequently ambushed and killed by well armed assassins. (
http://www.latimes.com/news/nationworld/world/la-fg-mexico-drugwar28-2008dec28,0,6322674.story).
So far people have been slow to realize the international nature of these gangs and how they coordinate activities throughout Latin America and the United States.
The U.S. is starting to take notice of the violence as it begins to spread throughout the country. Recently the Justice Department announced the conclusion of a 21 month investigation into a the Sinaloa Drug Cartel
(http://www.latimes.com/news/la-na-mexico-drug-cartel26-2009feb26,0,6751427.story?track=rss). The acting Administrator of the D.E.A. claimed that over 700 people were arrested, more than $59 million in illegal drug proceeds and large amounts of narcotics (including more than 24,000 pounds of cocaine, 1,200 pounds of methamphetamine and 1.3 million ecstasy pills. Authorities also seized more than $6.5 million in other assets, 149 vehicles, three aircraft, three maritime vessels and 169 weapons). He claims that this operation caused the cartel around $1 billion in revenue losses.
Mexican drug cartel activities have been identified as far afield as Anchorage, Alaska. "Elements of the Juarez cartel were identified in at least 44 cities from West Texas to Minneapolis. Gulf cartel affiliates were operating in at least 43 cities from South Texas to Buffalo, N.Y. And the Tijuana cartel, active in at least 20 U.S. cities, is extending its network from San Diego to Seattle and Anchorage," (
http://www.latimes.com/news/la-na-cartels16-2008nov16,0,986275.story)."The Drug Enforcement Administration told Congress two years ago that it believed Mexican-based trafficking organizations “now have command and control over the drug trade and are starting to show the hallmarks of organized crime, such as organizing into distinct cells with subordinate cells that operate throughout the United States,” (
http://www.latimes.com/news/la-na-cartels16-2008nov16,0,986275.story). There are reports of rogue factions of Mexican cartels operating from bases in San Diego with satellite operations drug in Kansas City and the Midwest raising funds to fight against rivals in Tijuana, Mexico. Murders, abductions, and robberies connected to cartel activity have become common place in the Southwest (and are increasing in other regions).
Scary stuff... Barbarians at the gate?
Update: The Senate is now interested in Mexican drug violence; "Some recent Mexican army and police confrontations with drug cartels have resembled small-unit combat, with cartels employing automatic weapons and grenades," the State Department said (
http://www.reuters.com/article/latestCrisis/idUSN26266392).
Financial Markets and Precious Metals Markets Down (again):http://www.google.com/finance?hl=en&tab=wehttp://www.kitco.com/market/My prediction? Dow to 6700 and Gold to $1000+ per oz.
Obama Trimming the Military-Industrial Complex Budget?Higher Pentagon spending? Kinda (
http://blog.wired.com/defense/2009/02/obama-administr.html#more). Due to less supplemental spending (i.e. not on official defense budget) there is a slight decrease from Bush years; although official defense budget is slightly higher.
Meanwhile, Defense Tech is blogging about the debate on whether or not the military needs two new next-generation fighter jets (
http://defensetech.org/). If policy makers decide that we only need one the question will be whether to cut the $137.5 million F-22 Raptor or the $83 million Joint Strike Fighter. It will become a "quality or quantity" type debate.
I think that the military is one area where we need to re-evaluate our spending priorities... Next generation fighters, helicopters, ships, rifles, and armored vehicles (all on the table right now) might not be prudent investments while funding is needed to fight a decidedly boots-on-the-ground conflict in Iraq and Afghanistan... How about more transport planes, trucks, and helicopters (or measures to take care of our soldiers, sailors, Marines, and veterans)? Certainly not as sexy as new weapons systems.
More defense pork here (
http://www.defensetech.org/archives/004707.html#comments)?
Update: CNN/Wolf is now reporting on the F-22/JSF debate.