Michael A. Walsh, in the New York Post, spills the beans on the damaging leak which has seriously compromised relations between British and American intelligence services.

So that “CIA coup” in Yemen against another al Qaeda underwear bomber turns out to actually have been a joint Saudi-British intelligence operation — which apparently was prematurely terminated thanks to flapping lips on this side of the Atlantic.

So the leak didn’t just blow our chances to nail the notorious bomb designer behind the plot, Ibrahim al-Asiri, and put the life of the double agent in mortal danger for no reason.

It also seriously damaged Langley’s relationship with its foreign counterparts, who now understand that operational security and the lives of their operatives mean nothing to us (not in an election year, anyway).

Which makes it even more important to find out: Who leaked?

The betting starts with former CIA official John Brennan, the White House’s deputy nationalsecurity adviser for counterterrorism. Shortly after details about the operation leaked to the Associated Press via unnamed “officials,” Brennan took to the airwaves to crow publicly about how the wedgie bomber was “no longer a threat to the American people.”

And the AP admitted it cleared its story with the feds in advance.

The uncharitable immediately saw this naked self-aggrandizement as a blatant attempt by the Obama administration to take political credit for something it had almost nothing to do with.

Read the whole thing.

Autoblog has one of those stories of government fiscal irresponsibility which will boggle your mind.

Have you ever bought a brand new cars only to forget where you put it? How about 300 of them? Probably not – unless you’re Miami-Dade County, which was recently reunited with 298 vehicles it bought brand new between 2006 and 2007.

The county “discovered” this fleet of no-mileage vehicles after reading about them in a Spanish-language newspaper there (see the source for more images). Most of the misplaced motorcade is made up of Toyota Prius hybrids whose warranties either expired with very few miles on the odo or will very soon.

Looking to save some face, the county has rushed at least 123 of the hybrids into service. The Toyota warranty covered the hybrid bits for eight years or 100,000 miles, but we’re not sure if that covers cars parked for five of those eight. We’re also not sure what that much time in Miami heat and humidity does to an unused hybrid powertrain, but it can’t be good.

Original Nuevo Herald story.

Hat tip to Iowahawk.

Ben Smith quotes an unnamed conservative lawyer who offers a simultaneously cynical and whimsical explanation of exactly why Obamacare is toast.

You have built an imaginary mansion, with thousands of rooms, on the foundation of Wickard v. Filburn — the 1942 ruling that broadened the understanding of how the Commerce Clause could be used to regulate economic activity.

We aren’t being asked to radically revise the Commerce Clause and throw out seven decades of law, and we won’t. But we know the founders never intended the Commerce Clause to allow the Federal Government to regulate everything on the planet. So we are going to accept Randy Barnett’s basically spurious exception to that basically spurious idea, and throw out the Affordable Care Act on the grounds that the Commerce Clause regulates “activity” (which we don’t really believe), but not “inactivity” (because, why not draw the line somewhere?).

This is to say: You have built a fantasy mansion on the Commerce Clause. You can hardly blame us if, in one wing of this mansion, down a dusty corridor, we build a fantasy room called “inactivity,” lock the door, and don’t let you in.

America’s thinking class saw Barack Obama as a light shining in the wilderness.

In deep despair over the coarsening of public discourse during the Dark Ages of the Bush administration, American intellectuals saw Barack Obama as one of their own, someone who could restore their exalted social status and raise the level of deliberative democratic debate.

Obama hadn’t accomplished anything of note; he wasn’t really qualified for the presidency; but he was superbly intelligent, had presided over the Harvard Law Review, had professed Constitutional Law at the University of Chicago Law School, and had authored two brilliant books. ...

A few days ago the curtain was drawn and people could see that the Wizard of Oz was not what he claimed to be.

In an effort to get personally involved in Supreme Court deliberations over his signature piece of legislation—Obamacare—our president made it appear that he did not understand the most fundamental doctrine in American jurisprudence.

The former president of the Harvard Law Review, former professor at the University of Chicago Law review managed to mangle an explanation of “judicial review.” As every high school history student knows the doctrine was adumbrated in 1803 by Chief Justice John Jay in the case of Marbury v. Madison.

Obama asserted:

Ultimately, I’m confident that the Supreme Court will not take what would be an unprecedented, extraordinary step of overturning a law that was passed by a strong majority of a democratically elected Congress.

As everyone but Obama knows, Marbury v. Madison established the right of the Supreme Court to strike down Congressional legislation that it deemed unconstitutional.

The Court has done just that on hundreds of occasions.

Read the whole thing.

Hat tip to Karen L. Myers.

Barack Obama made history of a kind in the course of his 2010 State of the Union address, when he openly criticized the Supreme Court for deciding in Citizens United that federal restrictions on political speech by corporations and unions was unconstitutional.

President Obama’s highly partisan statements actually provoked Justice Alito to murmur “Not true.”

——————————-

In a further triumph of jurisprudential diplomacy, Barack Obama yesterday “warned” the Surpreme Court not to overturn Obamacare.

FoxNews:

President Obama, employing his strongest language to date on the Supreme Court review of the federal health care overhaul, cautioned the court Monday against overturning the law—while repeatedly saying he’s “confident” it will be upheld.

The president spoke at length about the case at a joint press conference with the leaders of Mexico and Canada. The president, adopting what he described as the language of conservatives who fret about judicial activism, questioned how an “unelected group of people” could overturn a law approved by Congress.

“I’m confident that the Supreme Court will not take what would be an unprecedented, extraordinary step of overturning a law that was passed by a strong majority of a democratically elected Congress,” Obama said.

The Supreme Court’s sharp questioning of the constitutionality of Obamacare, and the obvious weakness of the Administration’s defense of that approach to health care reform, shocked and astounded liberal commentators. John Podhoretz notes that nothing came up in the Court’s questions that had not been argued previously by opponents of Obamacare, but previously the left just was not listening.

The panicked reception in the mainstream media of the three-day Supreme Court health-care marathon is a delightful reminder of the nearly impenetrable parochialism of American liberals.

They’re so convinced of their own correctness — and so determined to believe conservatives are either a) corrupt, b) stupid or c) deluded — that they find themselves repeatedly astonished to discover conservatives are in fact capable of a) advancing and defending their own powerful arguments, b) effectively countering weak liberal arguments and c) exposing the soft underbelly of liberal self-satisfaction as they do so.

That’s what happened this week. There appears to be no question in the mind of anyone who read the transcripts or listened to the oral arguments that the conservative lawyers and justices made mincemeat out of the Obama administration’s advocates and the liberal members of the court.

This came as a startling shock to the liberals who write about the court.

Read the whole thing.

When professional spinners on the left like Peter J. Boyer start explaining why the Supreme Court’s killing of Obamacare would really be a good thing for Barack Obama’s reelection chances, you can kind of tell that the realization that the Supreme Court is not likely to rule their way has pretty well sunk in.

Apart from the fact that Republicans would lose their most animating issue in the presidential race, the overturning of the health-care reform law would free Obama of the burden of having to mount a broad defense of his health-care plan as a centerpiece of his campaign. The president, who can read polls, managed to absent himself from any public observance of the reform law’s second anniversary last week. A Supreme Court invalidation of the reform law’s individual mandate, the feature that Americans find most odious (PDF) would allow Obama to embrace the issue anew, focusing on those portions of the reform (such as the provision allowing families to keep their children on their policies until they reach the age of 26) that most people actually like. Obama’s Democratic allies, meanwhile, could hammer home the importance of deciding who will be making the next appointments to the Supreme Court.

Jeffrey Toobin, a lawyer and legal analyst, who writes about legal topics for The New Yorker said the law looked to be in “trouble.” He called it a “trainwreck for the Obama administration.”

“This law looks like it’s going to be struck down. I’m telling you, all of the predictions, including mine, that the justices would not have a problem with this law were wrong,” Toobin said Tuesday on CNN. “I think this law is in grave, grave trouble.

Toobin’s observation came on the second day of oral arguments at the Supreme Court over the constitutionality of the Affordable Care Act.

Earlier that day, Supreme Court Justice Anthony Kennedy, who could be the deciding vote on whether to uphold the law, told Solicitor General Donald Verrilli that there appeared to be a “very heavy burden of justification” on aspects of the law, according to The Wall Street Journal.

Toobin described Kennedy as “enormously skeptical” during the arguments Tuesday.

Daniel Greenfield has a superb rant on government, regulation, & bureaucracy.

The first and foremost purpose of government is to create government jobs. Going back to the early days of American history a time honored tradition of newly elected politicians was to obtain positions for their friends, their nephews and assorted cousins. In those more innocent times appointing someone an inspector of something was a cordial way of repaying a favor. But the problem with inspectors is that they inspect things.

There are only so many idiot cousins you can hire to stamp papers and frown at things until you have to create an entire new department and then a division and then an agency to give them something to do. And that leads to budget drains and an expansion of government authority that interferes with the lives of people who work for a living.

A few centuries later we live in a country where every place that has more than three people living within three miles of each other is overseen by a multitude of agencies with overlapping levels of authority beginning from the locals to the staties and all the way up to Washington D.C. where the swamps were paved over to construct massive buildings full of agencies all descended from the day someone’s idiot cousin got a sinecure, a government horse and an inkwell in a city that no one used to take seriously.

Many of us would gladly trade off those buildings and those bureaucrats in return for a few dozen idiot cousins drinking in Washington taverns on the public’s dime in a country with no income tax and no one pounding on your door every five minutes because you don’t feed your kids arugula, don’t recycle your trash and don’t care about the latest trendy cause already being written into the state religion. ...

The left has rejected the industrialization of mechanical things, but it remains deeply in love with the mechanization of human beings, the mass production of impulses and the programming of their souls. It is constantly drawing up five year plans to achieve one social goal or another, and if the five year plans never succeed, then that just means that it’s time for an even more ambitious ten year plan to fight people who use too much water or don’t teach their children tolerance.

But the reasons why machines work is because people design them. Machines however cannot design machines. When the average functionary is as devoid of autonomy and innovative thinking as your Windows PC, then the society will begin crashing as it encounters errors not in its programming. Deploying masses of asses to tackle social problems while following a rigid script filled with inflexible assumptions is a surefire way to fail and use that as an excuse to throw more men at the job.

Failure is built into the system. Large armies of men following orders is a good way to grind down equally large armies. It’s not a way to run a country. Human industrialization creates bureaucratic hives which worsen everything they touch. It fills the country with functionaries following scripts that require them to confiscate our freedoms for our own good, a good that even in their limited definition they cannot achieve.

The very inflexibility of the idiot cousins guarantees their tenure. The more they fail, the more of them are needed. If we spent X amount of money to achieve Y without achieving it, then next time we must spend X+2. It’s the linear mechanical logic of the idiot who can only think in terms of tackling every problem with more resources until it finally cracks. If our last machine didn’t do it, then our massive EDUTRON 2000 which is twice as big and costs twice as much will surely educate all our children properly.

We have been throwing idiot cousins are the war on poverty, at discrimination and at overeating. And now we’re poorer, more bigoted and fatter than we used to be. Given another generation we’ll have trouble getting up out of bed at the homeless shelter long enough to carry out hate crimes. That’s not the official progressive party line which says that we are more tolerant than we used to be, even as they discover five new kinds of bigotry over the weekend. And as for poverty, it’s tempting to say that the only people who got rich fighting poverty were the idiot cousins, but even they are worse off in a country which is poorer than ever and which can only afford fattening food.

Like the Soviet Union, the progressive agenda never fails, it just succeeds so much that it moves on to fight new challenges, like racist babies, the imminent destruction of the planet and understanding how right wing talk show hosts brainwash people into hating all their programs. There are never defeats, only strategic retreats. Each setback is an opportunity to create a new agency full of idiot cousins with a 40 billion dollar budget in order to “invest in our future”.

Hat tip to Bird Dog.

The Economist finds “the land of the free” has become increasingly tied up by red-tape.

Americans love to laugh at ridiculous regulations. A Florida law requires vending-machine labels to urge the public to file a report if the label is not there. The Federal Railroad Administration insists that all trains must be painted with an “F” at the front, so you can tell which end is which. Bureaucratic busybodies in Bethesda, Maryland, have shut down children’s lemonade stands because the enterprising young moppets did not have trading licences. The list goes hilariously on.

But red tape in America is no laughing matter. The problem is not the rules that are self-evidently absurd. It is the ones that sound reasonable on their own but impose a huge burden collectively. America is meant to be the home of laissez-faire. Unlike Europeans, whose lives have long been circumscribed by meddling governments and diktats from Brussels, Americans are supposed to be free to choose, for better or for worse. Yet for some time America has been straying from this ideal.

Read the whole thing.

Mike McDaniel:

On December 8, 2011, appearing before the House Judiciary Committee, Attorney General Eric Holder baldly asserted that he had no idea who authorized the deadly Fast and Furious debacle and added that he would be “surprised” if any evidence about it could ever be found.

Put aside, for the moment, Holder’s lack of transparency which has become standard operating procedure for the most transparent administration in history, and consider that Mr. Holder is correct for two primary and likely reasons: he knows who is responsible for every facet of Fast and Furious and has no intention of ever revealing that information, and he has the most important, powerful ace any corrupt bureaucrat or politician could possibly have up his sleeve, but more on this later.

According to Fox News, on January 19, Patrick J. Cunningham, chief of the U.S. Attorney’s Office Criminal Division for Arizona, through his attorneys, has notified Rep. Darrell Issa’s Committee that he will not testify before the committee as requested and that if subpoenaed, will take the Fifth and refuse to testify to avoid incriminating himself.

They saved your right to continue to use Thomas Edison’s incandescent light bulbs if you so choose. We won’t all have to sit in our living rooms bathed in the Orwellian florescent glare of the over-priced alternative bulbs favored by devotees of the modern cult of Gaia.

The Politico reports.

The shutdown-averting budget bill will block federal light bulb efficiency standards, giving a win to House Republicans fighting the so-called ban on incandescent light bulbs.

GOP and Democratic sources tell POLITICO the final omnibus bill includes a rider defunding the Energy Department’s standards for traditional incandescent light bulbs to be 30 percent more energy efficient.

DOE’s light bulb rules — authorized under a 2007 energy law authored signed by President George W. Bush — would start going into effect Jan. 1. The rider will prevent DOE from implementing the rules through Sept. 30.

But Democrats said they could claim a “compromise” by adding language to the omnibus that requires DOE grant recipients greater than $1 million to certify they will upgrade the efficiency of their facilities by replacing any lighting to meet or exceed the 2007 energy law’s standards.

Fueled by conservative talk radio, Republicans made the last-ditch attempt to stop federal regulations from making their way into every Americans’ living room.

“There are just some issues that just grab the public’s attention. This is one of them,” said Rep. Greg Walden (R-Ore.). “It’s going to be dealt with in this legislation once and for all.”

Our self-appointed lords and masters on the left were not pleased.

White House… communications director Dan Pfeiffer [was] saying Wednesday that the House GOP plan would “undercut environmental protections.”

On Twitter, Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-N.M.) wrote: “I strongly oppose that language. I hope it’s deleted from any final bill that we pass.”

“This is just another poke in the eye,” said Rep. Jan Schakowsky (D-Ill.).

The feature humor item you’ll be seeing everywhere this holiday season is about a drastic shortage of butter in Norway occurring just as the Christmas season is at hand.

The journalists are telling us that the scarcity is the result of recent high Norwegian butter consumption resulting from a fashionable low-carb, high-fat diet on top of reduced production caused by a shortage of hay due to an unusually rainy summer growing season.

Profiteers are reported trying to charge as much as 350 euros ($465) for a 500-gram (1.1 lb. or 1 lb and 1.6 oz) packet of butter.

Ho, ho! Isn’t it funny?

None of the features on this news item I have found, however, notes that no butter shortage exists elsewhere in Europe or in the United States. But the AFP story offers a clue:

Last Friday, customs officers stopped a Russian at the Norwegian-Swedish border and seized 90 kilos (198 pounds) of butter stashed in his car.

The butter shortage obviously is not result, in a modern world, of a local dairy feed shortage, or of local supplies being exhausted by unusual demand. With rising demand and consumers willing to pay higher prices, the supply would be being met by enterprising Russians trying to make a kroner, if government were not standing in the way.

It is obvious that some kind of Norwegian limits on butter importation, doubtless in place to protect Norwegian dairy farmers, prevents legal access to supplies from abroad.

Norway’s holiday problem isn’t really about diet fads or rainy summers. It’s about government doing what government likes to do: delivering favors to special interests at the expense of society as a whole.

Time

lynnux notes that government regulation establishes the rules by which banks operate and even creates their opportunities for profits, but these vital economic realities come into being in the first place through the agency of politicians, people like Barney Frank, whose expertise (such as it is), and interests and concerns have no connection to economic realities or markets.

Politicians seem such busy-beavers today, “doing things” “for” us. Why such whirling dervishes, generating laws in bulk? In its broadest outlines, law is mostly static. Politicians seek to appear to the public to be men of action “doing something.” This leads them to make too many economic and personal choices that they are not supposed to be making “for” us at all, picking winners and losers. It is now to the point where, famously, they no longer even read the laws they promulgate upon the body politic. Their process is finger in the wind (test the zeitgeist for what buzz evokes positives), then claim to be acting in name of the democratic will of the people—who, like banks to regulators, can later be blamed, should anything go wrong. As a republic, not a direct democracy, our representatives are supposed to be doing the right thing, in their best judgment. We rely on their decency, wisdom, and intelligence and vision for the long term. They have no way of knowing anything about their constituency anyway, because to pollsters, people only express self-interest, not the public interest. The public interest can only be assessed at a remove, which is the representative’s job. Pollsters get whatever they fish for. Responders also like to echo conventional wisdom. Implementing conventional wisdom is not politicians’ job. ...

Politicians wrapped in soundbites simply may not be qualified to make all the rules they seek to impose on us in their show of “caring” for us. This, I think, is what Richard Posner is getting at when he speaks of The Crisis of Capitalist Democracy. We need systems engineers today who really do understand the system. Politicians are mostly not this, but marketing specialists. They dissolve always into futile calls for infinitely ethical global governmental forces (themselves) to abolish investment uncertainty in a complicated utopian merger with perfect empirical risk analysis, forgetting that the past is no divining rod of the future (nor of truth. ...

The law is being asked to make business judgments law simply should not be making at all. Law is static. Markets are not. The market will adjust to any fixed rule, changing the “new normal.” Positive feedback loops (“positive” does not imply good) can ensue, at many unexpected levels. The media’s celebrity focus on political figure summiteering, however, follows an old trope, of suggesting to the public that our pseudo-gods and deities, through law, can command markets. These heroes then arrogantly begin to believe their press releases and to act accordingly.

Lawyers often go to law school precisely because they don’t like math or statistics. The type can quite easily ignore economic reality as they proceed to plug old forms and numbers into new contexts.

Read the whole thing.

It doesn’t happen very often, but once in a blue moon you actually find a liberal exhibiting intellectual honesty and standing up for real principles. George State Law Professor Eric Segall has the audacity to tell the readership of Slate that, yes, Elena Kagan really should be recusing herself from participating in the Supreme Court decision on Obamacare. And he is dead right.

Doing the right thing is easy when nothing important is at stake. Doing the right thing is much harder when there is a lot to lose. Elena Kagan is a loyal Democrat who owes her Supreme Court appointment to President Barack Obama.* She is poised to review the constitutionality of Obama’s health care statute, which, if invalidated, might do serious damage to his re-election campaign as well as the Democratic Party. Even though it would be a hard decision to make, Elena Kagan should recuse herself from hearing challenges to the act.

So far it appears that only Republicans and conservatives want Kagan to recuse herself from hearing the case, while liberals and Democrats take the opposing view. I have been a liberal constitutional law professor for more than 20 years, and a loyal Democrat. I believe the Affordable Care Act is constitutional and that it would be truly unfortunate for the country (and the party) if the court strikes it down. I also recognize that there is a much greater chance of the court erroneously striking down the PPACA if Kagan recuses herself. That said, I believe that as a matter of both principle and law, Kagan should not hear the case.

But what are the odds that she has as much integrity as he does?

Libertarian (sounds like the modern California version to me) Jason Brennan is in a position make his liberals allies uncomfortable, when he connects the dots between liberal statist policy prescriptions and the kind of crony capitalism in which fat cat banks and corporations get to use the state as their servant and ally to build deeper regulatory moats and higher walls against competitors.

Dear members of the moderate left,

America is suffering from rampant, run-away corporatism and crony capitalism. We are increasingly a plutocracy in which government serves the interests of elite financiers and CEOs at the expense of everyone else.

You know this and you complain loudly about it. But the problem is your fault. You caused this state of affairs. Stop it.

Unlike we libertarianish people, you people actually hold and have been holding significant political power in the US over the past 50 years. What have you done with this power? You’ve greased the corporatist machine every chance you’ve gotten. You’ve made things worse, not better. Our current problems are your fault. You need to stop.

We told you this would happen, but you wouldn’t listen. You complain, rightly, that regulatory agencies are controlled by the very corporations they are supposed to constrain. Well, yeah, we told you that would happen. When you create power—and you people love to create power—the unscrupulous seek to capture that power for their personal benefit. Time and time again, they succeed. We told you that would happen, and we gave you an accurate account of how it would happen.

You complain, perhaps rightly, that corporations are just too big. Well, yeah, we told you that would happen. When you create complicated tax codes, complicated regulatory regimes, and complicated licensing rules, these regulations naturally select for larger and larger corporations. We told you that would happen. Of course, these increasingly large corporations then capture these rules, codes, and regulations to disadvantage their competitors and exploit the rest of us. We told you that would happen.

It’s not rocket science. It’s public choice economics. You recognized, rightly, that public choice economics was a threat to your ideology. So, you didn’t listen, because you didn’t want to be wrong. Public choice predicted that the government programs you created with the goal of fixing problems would often instead exacerbate those problems. Well, the evidence is in. You were wrong and public choice theory was right. If you have any decency, it is time to admit you were wrong and change. Stop making things worse.

You spent the past fifty years empowering corporations and the most unscrupulous of the rich. You created rampant moral hazard in the financial sector. You created the system that socializes risks but privatizes profit. You created the system that creates a revolving door between Obama’s staff and Goldman Sachs. There’s a reason why Wall Street throws money at Obama. It’s because you, the moderate left, are Wall Street’s biggest supporters. Oh, I know you complain about Wall Street. But your actions speak louder than your words.

From Dan Mitchell.

From Alex Tabarrok:

The NYTimes reported earlier this year that through an extraordinary use of tax breaks and clever accounting:

[General Electric] reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

The Times highlighted the skill of GE’s dream team:

G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.

More recently from The Weekly Standard we find what kind of effort it takes to pay no taxes on $14 billion in profits:

General Electric, one of the largest corporations in America, filed a whopping 57,000-page federal tax return earlier this year but didn’t pay taxes on $14 billion in profits. The return, which was filed electronically, would have been 19 feet high if printed out and stacked.

(FYI, the length of GE’s tax return has doubled since 2006 when it (first?) filed electronically at an equivalent of 24,000 pages.)

GE’s tax bill illustrates both why our corporate tax rate is too high and too low. The nominal rate is too high which encourages a real rate which is too low.

Hat tip to Walter Olson.

The Telegraph has a news item proving that the unelected elite bureaucracy does as excellent a job at supervising food standards as it does managing the European financial system.

Brussels bureaucrats were ridiculed yesterday after banning drink manufacturers from claiming that water can prevent dehydration.

EU officials concluded that, following a three-year investigation, there was no evidence to prove the previously undisputed fact.

Producers of bottled water are now forbidden by law from making the claim and will face a two-year jail sentence if they defy the edict, which comes into force in the UK next month.

Last night, critics claimed the EU was at odds with both science and common sense. Conservative MEP Roger Helmer said: “This is stupidity writ large.

“The euro is burning, the EU is falling apart and yet here they are: highly-paid, highly-pensioned officials worrying about the obvious qualities of water and trying to deny us the right to say what is patently true.

“If ever there were an episode which demonstrates the folly of the great European project then this is it.”

Llewellyn H. Rockwell, Jr., at the Ludwig von Mises Institute, says those Occupy Wall Street protestors have got it right about the 1% exploiting the 99%. They just are mixed up about the identity of the parasitical 1%.

The “occupy” protest movement is thriving off the claim that the 99 percent are being exploited by the 1 percent, and there is truth in what they say. But they have the identities of the groups wrong. They imagine that it is the 1 percent of highest wealth holders who are the problem. In fact, that 1 percent includes some of the smartest, most innovative people in the country — the people who invent, market, and distribute material blessings to the whole population. They also own the capital that sustains productivity and growth.

But there is another 1 percent out there, those who do live parasitically off the population and exploit the 99 percent. Moreover, there is a long intellectual tradition, dating back to the late Middle Ages, that draws attention to the strange reality that a tiny minority lives off the productive labor of the overwhelming majority.

I’m speaking of the state, which even today is made up of a tiny sliver of the population but is the direct cause of all the impoverishing wars, inflation, taxes, regimentation, and social conflict. This 1 percent is the direct cause of the violence, the censorship, the unemployment, and vast amounts of poverty, too.

Look at the numbers, rounding from latest data. The US population is 307 million. There are about 20 million government employees at all levels, which makes 6.5 percent. But 6.2 million of these people are public-school teachers, whom I think we can say are not really the ruling elite. That takes us down to 4.4 percent.

We can knock of another half million who work for the post office, and probably the same who work for various service department bureaus. Probably another million do not work in any enforcement arm of the state, and there’s also the amazing labor-pool fluff that comes with any government work. Local governments do not cause nationwide problems (usually), and the same might be said of the 50 states. The real problem is at the federal level (8.5 million), from which we can subtract fluff, drones, and service workers.

In the end, we end up with about 3 million people who constitute what is commonly called the state. For short, we can just call these people the 1 percent.

The 1 percent do not generate any wealth of their own. Everything they have they get by taking from others under the cover of law. They live at our expense. ...

Why don’t the protesters get this? Because they are victims of propaganda by the state, doled out in public schools, that attempts to blame all human suffering on private parties and free enterprise. They do not comprehend that the real enemy is the institution that brainwashes them to think the way they do.

They are right that society is rife with conflicts, and that the contest is wildly lopsided. It is indeed the 99 percent versus the 1 percent. They’re just wrong about the identity of the enemy.

I think Mr. Rockwell is wrong, though, about those public school teachers and other government employees. Today’s public school system is an employment empire, which devotes far more energy to its real purpose of growing itself and gaining an ever larger share annual budget and staff than it does to its ostensible purpose of educating. Public schools in America are either rudimentary babysitting services which evolves into concentration camps or lavishly funded credentialing services designed to maintain the grip on status of the next generation of the haute bourgeoisie.

The left is protesting Wall Street while Barack Obama continues to whip up popular resentment of the US financial industry, but the massive regulation of that industry effectuated by Sarbanes-Oxley and Dodd-Frank are already making sure that liberals are not going to have the world center of finance capitalism based conveniently in Lower Manhattan when they feel like kicking it around some more.

As the Wall Street Journal reported yesterday, Wall Street is in serious decline. Jobs are evaporating.

New York City’s securities industry could lose nearly 10,000 jobs by the end of 2012, New York state’s comptroller predicted, a painful blow to the area’s economy and government budgets.

New York City’s securities industry could lose nearly 10,000 jobs by the end of 2012, New York state’s comptroller predicted, a painful blow to the area’s economy and government budgets, Aaron Lucchetti reports on Markets Hub. Banks in the New York area are also poised to shed jobs. Photo: AP.

In a report set to be released Tuesday, Comptroller Thomas P. DiNapoli also said bonuses are likely to shrink this year, reflecting lower profits on Wall Street.

Since January 2008, the securities industry in New York has seen 22,000 jobs evaporate. If Mr. DiNapoli’s prediction of 10,000 more jobs losses between August 2011 and year-end 2012 comes true, that would represent a decline of 17%. About 4,100 jobs have been eliminated since April, and deeper cuts are widely seen as inevitable given a recent flurry of corporate expense-trimming announcements.

There is a 1:1 relationship between recent federal regulations and Wall Street’s decline. Disgruntled lesbian rockers who think that capitalism has not been properly compensating them will soon have to go demonstrate in London and Abu Dhabi.

MSNBC records the passing of another landmark on the road to ruin for the current administration.

The U.S. has tumbled further down a global ranking of the world’s most competitive economies, landing at fifth place because of its huge deficits and declining public faith in government, a global economic group said Wednesday.

The announcement by the World Economic Forum was the latest bad news for the Obama administration, which has been struggling to boost the sinking U.S. economy and lower an unemployment rate of more than 9 percent.

Switzerland held onto the top spot for the third consecutive year in the annual ranking by the Geneva-based forum, which is best known for its exclusive meeting of luminaries in Davos, Switzerland, each January.

Singapore moved up to second place, bumping Sweden down to third. Finland moved up to fourth place, from seventh last year. The U.S. was in fourth place last year, after falling from No. 1 in 2008.

The rankings, which the forum has issued for more than three decades, are based on economic data and a survey of 15,000 business executives.

Yesterday afternoon, when the earthquake hit, I was two steps up a rickety flight of stairs in an old warehouse in Remington, Virginia where we’re storing some of the many books we cannot fit into the charming, antique Virginia farmhouse we are currently inhabiting.

I thought someone must be opening an exceptionally violent garage door on the other side of the wall, then began guessing someone was running some piece of heavy machinery nearby in the building. The vibration stopped, and I proceeded upstairs.

I only learned that it was an earthquake when I got back to the car and turned on the radio.

WMAL, 63 AM, the station I listen to El Rushbo on, switched over to full-time broadcasting about this major news event. Sean Hannity never even came on. Instead, Conservative talk radio host Chris Plante was dragged out a pizzeria, where he had been lunching, back to the studio to cover what was essentially a non-event.

Chris and his associates interviewed all sorts of ordinary people, who testified to all of their personal earthquake experiences (typically just as interesting as mine).

My blood ran cold when Chris Plante, the conservative, proceeded in Pavlovian journalistic manner to interview a state legislator from Prince George County about “government’s response.” I would have said, in his position: “Response? What response? There was no actual damage. No injuries. There wasn’t anything anyone needed to do.” But, no. The politico happily bloviated on and on about how each and every level of government bureaucracy, all the “first responders” in particular, turned on every flashing light and siren, and spun their wheels vigorously. Our rulers, guardians, supervisors, and protectors had to justify their existence by seeming to take control, and keeping the rest of us alerted and informed, even if there was nothing in particular to alert us about, beyond potential heavy traffic resulting from government offices releasing their personnel to commute home early.

Even a conservative commentator, like Chris Plante, can be found to behave as a true product of the culture of journalism and officialdom, when push comes shove (even in the case of a minor 5.9 push), the journalist Plante goes running to Big Brother to participate in, and to cover with canine respect, the charade of official expertise gravely protecting us, the helpless public, from all perils and vissiscitudes, even in an instance where there is nothing but the empty semblance of a real event.

Bah, humbug!

Being engaged in something, kind of, sort of, resembling journalism myself, as you can see, I, too, felt obliged to cover the terrible earthquake of 2011, and here from BuzzFeed are 20 photographs of some of the worst damage.

The author of Sippican Cottage lives in Rumford, Maine and builds furniture for a living. Looking at a YouTube of a wood-working shop, absolutely stuffed with tools, he was moved to reflection.

Unlike most of the world, I am not allowed to have the Process be the Product. At the end of the day there has to be something tangibly different with the world or we don’t eat. Sometimes we don’t eat anyway. Most of the world we inhabit now is all Process and no Product. What is Twitter, or Tumblr, or Facebook, or a million other things you could name that consist solely of: This is how I go, when I go like this.

The federal government thinks the process is the entire product. The public school system can produce only public school teachers. The EPA is now supposed to protect the air from humans. The Department of Energy doesn’t make any, and would prefer you didn’t as well—or else. Cities like Detroit are trying to exist with no population now. Search your mind. You’ll have to search hard to find exceptions, not examples.

Via Vanderleun.