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GOP Candidates Betray the Spirit of Reagan on Immigration | Daniel Griswold | Cato Institute: Commentary: 'If legal immigration were expanded, the kind of workers now sneaking across the border illegally would instead enter legally through established ports of entry. We know from the Bracero program in the 1950s that an increase in guest-worker visas led to a sharp drop in illegal traffic across the border. With far fewer workers entering illegally, the Border Patrol and local law-enforcement officers could concentrate their resources on apprehending real criminals.'
'In April 1980, when Ronald Reagan was competing in the presidential primaries, he rejected the building of a wall between the United States and Mexico: "Rather than talking about putting up a fence, why don't we work out some recognition of our mutual problems? Make it possible for them to come here legally with a work permit — and then while they're working and earning here, they pay taxes here. And when they want to go back, they can go back. And open the border both ways by understanding their problems."'
Tuesday, January 03, 2012
Purveyors of Financial Destruction | Richard W. Rahn | Cato Institute: Commentary
Purveyors of Financial Destruction | Richard W. Rahn | Cato Institute: Commentary: 'How is it that since 2008, a self-proclaimed communist country [China] raises more capital and has more new firms going public than the great bastion of free-market capitalism, the United States? Answer: Members of Congress have been killing the U.S. financial markets because of hubris, incompetence and a lust for power and money.
On Dec. 21, 2008, a Wall Street Journal editorial correctly stated after the U.S. lost the lead in initial public offerings (IPOs) for the first time: “For all of this, we can thank Sarbanes-Oxley [accounting reform act, passed in 2002]. Cooked up in the wake of accounting scandals earlier this decade, it has essentially killed the creation of new public companies in America.”'
'Thanks largely to the tireless efforts of a former general counsel of the Treasury, Peter Wallison, and his American Enterprise Institute colleague Edward Pinto, we now know “the financial crisis would not have occurred but for government housing policy implemented principally through Fannie and Freddie and the Department of Housing and Urban Development (HUD).” The Securities and Exchange Commission (SEC) has confirmed that Mr. Wallison and Mr. Pinto correctly exposed the wrongdoing of government-sponsored enterprises (GSEs), including Fannie and Freddie. The SEC has documented $1.03 trillion in previously undisclosed subprime and alternative-documentation loans in Fannie’s and Freddie’s credit guaranty portfolios, and it goes on and on.
The bottom line of all of this is that it was members of Congress who were responsible for the financial crisis because of bills they passed and their lack of oversight of the GSEs. Rather than admit their own complicity, Congress, the president and much of the Washington establishment blamed it on greedy bankers.'
'A prime example of how worthless the new regulations are is Jon Corzine, former Democratic senator and governor of New Jersey, who was a major supporter of the new legislation. His firm, MF Global, somehow lost $1.2 billion of its customers’ money because it apparently commingled client funds with the firm’s money. This is exactly one of the acts the Dodd-Frank Act was supposed to prevent. Vice President Joseph R. Biden Jr. has stated that Mr. Corzine was the person to whom he and President Obama first turned for economic and financial advice.'
'The United States is in the process of driving hundreds of billions of dollars, if not a trillion or more of needed foreign investment that creates jobs and fuels new technologies, out of the country because of the new Foreign Account Tax Compliance Act (FATCA). The law would hit with draconian fines foreign financial institutions that might have a U.S. citizen among their clients if they fail to identify that person as such. In an era when dual citizenships are common, it is practically impossible for any financial institution to know with absolute certainty the tax homes of all of its clients. The fines for noncompliance are so massive that many foreign financial institutions say they will no longer invest in the United States. You might ask, what kind of idiot would put perhaps a trillion dollars or more of investment at risk for an illusionary gain of $8 billion in tax revenue?'
On Dec. 21, 2008, a Wall Street Journal editorial correctly stated after the U.S. lost the lead in initial public offerings (IPOs) for the first time: “For all of this, we can thank Sarbanes-Oxley [accounting reform act, passed in 2002]. Cooked up in the wake of accounting scandals earlier this decade, it has essentially killed the creation of new public companies in America.”'
'Thanks largely to the tireless efforts of a former general counsel of the Treasury, Peter Wallison, and his American Enterprise Institute colleague Edward Pinto, we now know “the financial crisis would not have occurred but for government housing policy implemented principally through Fannie and Freddie and the Department of Housing and Urban Development (HUD).” The Securities and Exchange Commission (SEC) has confirmed that Mr. Wallison and Mr. Pinto correctly exposed the wrongdoing of government-sponsored enterprises (GSEs), including Fannie and Freddie. The SEC has documented $1.03 trillion in previously undisclosed subprime and alternative-documentation loans in Fannie’s and Freddie’s credit guaranty portfolios, and it goes on and on.
The bottom line of all of this is that it was members of Congress who were responsible for the financial crisis because of bills they passed and their lack of oversight of the GSEs. Rather than admit their own complicity, Congress, the president and much of the Washington establishment blamed it on greedy bankers.'
'A prime example of how worthless the new regulations are is Jon Corzine, former Democratic senator and governor of New Jersey, who was a major supporter of the new legislation. His firm, MF Global, somehow lost $1.2 billion of its customers’ money because it apparently commingled client funds with the firm’s money. This is exactly one of the acts the Dodd-Frank Act was supposed to prevent. Vice President Joseph R. Biden Jr. has stated that Mr. Corzine was the person to whom he and President Obama first turned for economic and financial advice.'
'The United States is in the process of driving hundreds of billions of dollars, if not a trillion or more of needed foreign investment that creates jobs and fuels new technologies, out of the country because of the new Foreign Account Tax Compliance Act (FATCA). The law would hit with draconian fines foreign financial institutions that might have a U.S. citizen among their clients if they fail to identify that person as such. In an era when dual citizenships are common, it is practically impossible for any financial institution to know with absolute certainty the tax homes of all of its clients. The fines for noncompliance are so massive that many foreign financial institutions say they will no longer invest in the United States. You might ask, what kind of idiot would put perhaps a trillion dollars or more of investment at risk for an illusionary gain of $8 billion in tax revenue?'
Bernanke (in 2005): There's No Housing Bubble to Go Bust
Bernanke (in 2005): There's No Housing Bubble to Go Bust: 'Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve.
U.S. house prices have risen by nearly 25 percent over the past two years, noted Bernanke, currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households.'
'Greenspan has said recently that he sees no national bubble in home prices, but rather "froth" in some local markets. Prices may fall in some areas, he indicated. And he warned in a speech last month that some borrowers and lenders may suffer "significant losses" if cooling house prices make it difficult to repay new types of riskier home loans -- such as interest-only adjustable-rate mortgages.'
'[Greenspan] and Bernanke have both said it is unrealistic to expect the Fed to identify a bubble in stock or real estate prices as it is inflating, or to be able to pop it without hurting the economy. Instead, the Fed should stand ready to mop up the economic aftermath of a bubble.'
'In late 2000, looking ahead to the possibility of a sharp fall in then-lofty stock prices, Bernanke concluded, "history proves . . . that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse."'
U.S. house prices have risen by nearly 25 percent over the past two years, noted Bernanke, currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households.'
'Greenspan has said recently that he sees no national bubble in home prices, but rather "froth" in some local markets. Prices may fall in some areas, he indicated. And he warned in a speech last month that some borrowers and lenders may suffer "significant losses" if cooling house prices make it difficult to repay new types of riskier home loans -- such as interest-only adjustable-rate mortgages.'
'[Greenspan] and Bernanke have both said it is unrealistic to expect the Fed to identify a bubble in stock or real estate prices as it is inflating, or to be able to pop it without hurting the economy. Instead, the Fed should stand ready to mop up the economic aftermath of a bubble.'
'In late 2000, looking ahead to the possibility of a sharp fall in then-lofty stock prices, Bernanke concluded, "history proves . . . that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse."'
Why Ron Paul Matters | Edward H. Crane | Cato Institute: Commentary
Why Ron Paul Matters | Edward H. Crane | Cato Institute: Commentary: 'The Bush and Obama administrations have claimed the right to incarcerate an American citizen on American soil, without charge, without access to an attorney, for an indefinite period.
President Obama even claims the right to kill American citizens on foreign soil, without due process of law, for suspected terrorist activities.'
President Obama even claims the right to kill American citizens on foreign soil, without due process of law, for suspected terrorist activities.'
Irresponsible Foreign Policy: The Republican Establishment, Not Ron Paul | Doug Bandow | Cato Institute: Commentary
Irresponsible Foreign Policy: The Republican Establishment, Not Ron Paul | Doug Bandow | Cato Institute: Commentary: 'Rick Santorum warned: as commander-in-chief Ron Paul "can shut down our bases in Germany. He can shut down the bases in Japan. He can pull our fleets back."
Why would this be bad? The European nations have a larger GDP and population than America. The U.S. faces fiscal crisis: after 66 years, it is time for the Europeans to defend themselves. Japan, long possessing the world's second largest economy, also could take care of itself.'
'Gingrich apocalyptically claimed that the U.S. "would never, ever be safe" with the current regime in Tehran. Yet America survived decades of Stalin's Soviet Union, Mao's China, and Kim Il-sung's and Kim Jong-il's North Korea. Deterrence worked. America's military power remains overwhelming; any attack on the U.S. would lead to Tehran's destruction. And no Republican has offered evidence that Iran's rulers are suicidal.'
'Paul's willingness to rethink U.S. foreign policy means he is the only candidate to propose a realistic military budget, one that supports the "common defense" of America, not the rest of the world. The other GOP candidates decry nonexistent spending cuts. Military outlays under President Obama are higher than under President Bush. Only in Washington is slowing the rate of increased called a "cut."
In real terms U.S. military outlays have doubled over the last decade. America today spends more in real terms than it did during the Cold War, Korean War, or Vietnam War. Washington accounts for roughly half the globe's military outlays, while allied with every major industrialized state other than China and Russia. America's closest competitor is China, yet Washington alone spends several times as much on the military as Beijing, and many U.S. friends in Asia are arming against China.'
Why would this be bad? The European nations have a larger GDP and population than America. The U.S. faces fiscal crisis: after 66 years, it is time for the Europeans to defend themselves. Japan, long possessing the world's second largest economy, also could take care of itself.'
'Gingrich apocalyptically claimed that the U.S. "would never, ever be safe" with the current regime in Tehran. Yet America survived decades of Stalin's Soviet Union, Mao's China, and Kim Il-sung's and Kim Jong-il's North Korea. Deterrence worked. America's military power remains overwhelming; any attack on the U.S. would lead to Tehran's destruction. And no Republican has offered evidence that Iran's rulers are suicidal.'
'Paul's willingness to rethink U.S. foreign policy means he is the only candidate to propose a realistic military budget, one that supports the "common defense" of America, not the rest of the world. The other GOP candidates decry nonexistent spending cuts. Military outlays under President Obama are higher than under President Bush. Only in Washington is slowing the rate of increased called a "cut."
In real terms U.S. military outlays have doubled over the last decade. America today spends more in real terms than it did during the Cold War, Korean War, or Vietnam War. Washington accounts for roughly half the globe's military outlays, while allied with every major industrialized state other than China and Russia. America's closest competitor is China, yet Washington alone spends several times as much on the military as Beijing, and many U.S. friends in Asia are arming against China.'
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