American Elephants


President Obama’s “Pivot” to The Minimum Wage by The Elephant's Child

The United States is sending ground troops to Poland, the Polish defense minister says after meeting with Secretary of Defense Chuck Hagel. But not to worry, this is not a major escalation. Supposedly they are sending a company, about 150 soldiers, for exercises with the Polish military for a short stay, or something like that.

The Ukrainians asked for military aid, we denied them weapons, but sent MREs and military style socks, and reportedly helmets as well. They were trucked into Ukraine as it was thought a military cargo plane might be too provocative.

President Putin, on the other hand has something like 40,000 troops massed on the Ukrainian border, but says they are just there as a precaution since there is so much unrest in the Ukraine. The officers above the rank of Major in the Ukrainian military all came up through the Russian military, and they aren’t going to fight Russians.

The Russian President denies that the militants in the Ukraine have anything to do with Russia, and he is quite helpless to stop them. Although the pro-Russian activists seem to have had military training, their weapons and equipment are all Russian, and their use of tear gas and stun grenades is inconsistent with a spontaneous local militia. Last Thursday Mr. Putin referred to Ukraine as part of “New Russia.” Even when Mr. Putin openly declares his goal, Mr. Obama prefers to ignore it. The Wall Street Journal said:

The larger problem is that Mr. Obama can’t seem to admit that his assumptions about the world are being repudiated by the week. He came to office believing his own campaign rhetoric that the U.S. was unpopular mainly because of President George W. Bush. He would end these misunderstandings through diplomatic engagement, especially with our adversaries, who would respond in kind to our good will and moral example. Nowhere in the world has that happened.

Diplomacy in Geneva has come up with about what one would expect. After seven hours of negotiations they agreed that “all parties including separatists and their Russian backer, would stop violent and provocative acts, and all illegal groups would be disarmed. A joint statement made no presence of what the U.S. has said are 40,000 Russian troops massed on Ukraine’s eastern and southern borders. Kerry said that Russia is “absolutely prepared to begin to respond with respect to troops,” provided the agreement is observed.

The U.S. has sent 12 F-16 fighters and 200 support personnel to Poland. NATO’s secretary-general Anders Fogh Rasmussen said that the alliance would fly more air patrols over the Baltic region and allied ships would deploy to the Baltic.

Polish Defense Minister Tomasz Siemoniak said the United States, having announced a “pivot” to Asia, needs to “re–pivot” to Europe, and European countries that have cut back on defense spending need to reverse the trend.

The idea until recently was that there were no more threats in Europe and no need for a U.S. presence in Europe any more. Events show that what is needed is a re-pivot, and that Europe was safe and secure because America was in Europe.

According to the New York TimesMr. Obama has concluded that he will never have a constructive relationship with Mr. Putin. As a result he will spend his final two and a half years in office trying to minimize the disruption Mr. Putin can cause, and otherwise turn to other foreign policy area where progress remains possible.

The White House is preparing to nominate John Fl Tefft, a career diplomat who previously served as ambassador to Ukraine , Georgia and Lithuania.  Administration officials were leery of sending Mr. Tefft because of concern that his experience in former Soviet republics that have flouted Moscow’s influence would irritate Russia.

Obama is less concerned with irritating Russia now, and is reportedly pivoting to the George F. Kennan strategy of containment.

The more hawkish faction in the State and Defense Departments has grown increasingly frustrated, privately worrying that Mr. Obama has come across as weak and unintentionally sent the message that he has written off Crimea after Russia’s annexation. They have pressed for faster and more expansive sanctions, only to wait while memos sit in the White House without action. Mr. Obama has not even imposed sanctions on a list of Russian human rights violators waiting for approval since last winter.

Mr. Obama says that Ukraine is not a major concern for Americans. He has concentrated his public schedule around “important” issues like job training and the minimum wage. Since Mr. Putin is not interested in a partnership, Mr. Obama is not interested in the Ukraine or Russia. But then, he’s not much interested in foreign policy at all—though it’s the major part of his job description.

David P. Goldman, writing as “Spengler” says Americans are playing Monopoly, Russians are playing chess. Ukraine is a basket case with a per capita income a tenth of that of the European Community. They are deeply in debt to the Russians and dependent on Russian energy. Putin will let the West take charge of the Ukrainian disaster until it festers, and then pick and choose what he wants. And what he wants is a “new Russia.”



“Economics Is Organized Common Sense” by The Elephant's Child

Economists Craig Newmark and AEI’s Mark Perry dug up Nobel economist Thomas Sargent’s shortest U.S. graduation speech ever. A simple list of twelve valuable economic lessons. The speech was delivered at his undergraduate alma mater University of California at Berkeley, May 16, 2007.

“I remember how happy I felt when I graduated from Berkeley many years ago. But I thought the graduation speeches were long. I will economize on words.”

“Economics is organized common sense. Here is a short list of valuable lessons that our beautiful subject teaches.”

1. Many things that are desirable are not feasible.

2. Individuals and communities face trade-offs.

3. Other people have more information about their abilities, their efforts, and their preferences than you do.

4. Everyone responds to incentives, including people you want to help. That is why social safety nets don’t always end up working as intended.

5. There are tradeoffs between equality and efficiency.

6. In an equilibrium of a game or an economy, people are satisfied with their choices. That is why it is difficult for well-meaning outsiders to change things for better or worse.

7. In the future, you too will respond to incentives. That is why there are some promises that you’d like to make but can’t. No one will believe those promises because they know that later it will not be in your interest to deliver. The lesson here is this: before you make a promise, think about whether you will want to keep it if and when your circumstances change. This is how you earn a reputation.

8. Governments and voters respond to incentives too. That is why governments sometimes default on loans and other promises that they have made.

9. It is feasible for one generation to shift costs to subsequent ones. That is what national government debts and the U.S. social security system do (but not the social security system of Singapore).

10. When a government spends, its citizens eventually pay, either today or tomorrow, either through explicit taxes or implicit ones like inflation.

11. Most people want other people to pay for public goods and government transfers (especially transfers to themselves).

12. Because market prices aggregate traders’ information, it is difficult to forecast stock prices and interest rates and exchange rates.

That is a remarkably valuable short list. Pin it up beside the mirror in your bathroom so you can read it every morning until you know it by heart.



Happy Easter! by American Elephant
April 20, 2014, 4:55 pm
Filed under: Music, Religion | Tags: , , ,

Easter

Matthew 28:1-10

After the Sabbath, at dawn on the first day of the week, Mary Magdalene and the other Mary went to look at the tomb. There was a violent earthquake, for an angel of the Lord came down from heaven and, going to the tomb, rolled back the stone and sat on it. His appearance was like lightning, and his clothes were white as snow. The guards were so afraid of him that they shook and became like dead men.

The angel said to the women, “Do not be afraid, for I know that you are looking for Jesus, who was crucified. He is not here; he has risen, just as he said. Come and see the place where he lay. Then go quickly and tell his disciples: ‘He has risen from the dead and is going ahead of you into Galilee. There you will see him.’ Now I have told you.”

So the women hurried away from the tomb, afraid yet filled with joy, and ran to tell his disciples. Suddenly Jesus met them. “Greetings,” he said. They came to him, clasped his feet and worshiped him. Then Jesus said to them, “Do not be afraid. Go and tell my brothers to go to Galilee; there they will see me.”

video via @pgkstj



New Day, Fresh Start, New Hope by The Elephant's Child
April 20, 2014, 6:23 am
Filed under: Politics

A Happy Easter To You All

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Easter Sunday, 2014  *  American Elephants




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