Norwegian Air Locked Out of U.S. Market for Daring to Offer Less Expensive Flights

A Boeing Norwegian Air shuttle.

Norwegian Air has been waiting, and waiting, and waiting for
approval to expand the number of low-cost trans-Atlantic flights it
can offer to American travelers—and it seems the airline’s top
brass is losing patience with the repeated delays. According to a
release from the company:

Today, Norwegian’s CEO Bjørn Kjos will call on the U.S.
Department of Transportation (DOT) to once and for all approve the
application for a foreign air carrier permit for the company’s
Irish subsidiary Norwegian Air International (NAI)…

“We are doing exactly what the Obama administration wants:
create American jobs, bring tourists to the United States and offer
Americans cheap flights. The transatlantic market has far too long
been dominated by alliances that have been allowed to rule the
market with high prices and limited choice,” says Bjørn Kjos.

The dispute stems from Norwegian’s decision to set up a
subsidiary in Ireland to take advantage of an Open Skies agreement
between the U.S. and the European Union. The deal loosens
restrictions between member nations, a list that includes Ireland
but not Norway. Thus, at least in theory, setting up shop in the
British Isles means NAI can fly to the U.S. without having to jump
through quite so many hoops.

But some groups in the U.S. think the move is an attempt to
skirt the law and have lobbied Congress and the the executive
branch to prevent the airline from flying here. In June, the House

passed an amendment
to make it far more difficult for Norwegian
to receive the needed approval, and in September, the DOT
rejected a request
to allow the company to begin operating
while its full application is reviewed.

The controversy pits E.U. regulators, which generally support
allowing NAI to fly between the U.S. and their shores, against
domestic special interests like the Air Line Pilots Association.
Detractors argue Norwegian should be rebuffed on fairness grounds,
since airlines based in Ireland don’t have to abide by the same
labor laws as airlines based in some other places.

The real issue is, as ever, money. Legacy carriers American,
Delta, and United know they risk losing market share to the
Ireland-based upstart. If NAI finds a way to spend less than its
competitors on compliance, it can pass those savings on to
passengers in the form of cheaper flights. The domestic airlines
are doing whatever it takes to keep that from happening. Sadly for
consumers, it’s working.

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Florida Creamery Fights Gov-Mandated Mislabeling of Skim Milk

Florida-based Ocheesee Creamery is fighting a state
agricultural department rule that bars the business from accurately
labelling its skim milk as skim milk. Because creamery owner Mary
Lou Wesselhoeft does not inject vitamin A into the milk, the
Florida Department of Agriculture and Consumer Serices (DACS) says
she can only label it “Non-Grade ‘A’ Milk Product, Natural Milk
Vitamins Removed”. 

Ocheesee Creamery and the Institute for Justice (IJ)
are challenging this labeling requirement, which certainly doesn’t
make for spectacular marketing. But Wesselhoeft and IJ go one step
further and say that the label is actively misleading to consumers,
since her skim milk is not a “milk product” but whole, natural milk
with the cream skimmed off. This is, by definition, how skim milk
is made.

“It is unconstitutional for government to force businesses to
mislead their customers,” states IJ, accusing the Florida
government of claiming “the power to change the definition of
ordinary words.” 

Florida law requires those who sell skim milk—a process that
necessarily means removing a lot of the milk’s natural nutrients—to
artificially boost the beverage’s vitamin-A level until it matches
that found in whole milk. Wesselhoeft refuses to do so, citing
an anti-additive philosophy she shares with her
customers. But the state says without vitamin A enhancement, she
can’t call the product skim milk, nor will they negotiate with her
on other acceptable labeling, according to the creamery’s
lawsuit. 

“The government is censoring me from telling my customers what
is in the milk they want to buy,” said Wesslhoeft. “I have a right to label the skim
milk I want to sell as exactly what it is: pasteurized skim
milk.”

Her case, Ocheesee Creamery v. Putnam and Newton,
was filed in federal court Thursday. The case is part of IJ’s
National Food Freedom Initiative, a campaign consisting of
“property rights, economic liberty and free speech challenges to
laws that interfere with the ability of Americans to produce,
market, procure and consume the foods of their choice.” So far, the
initiative has seen success in a challenge to Oregon’s ban on raw
milk advertising; a challenge to a Miami Shores, Florida, ban on
front-yard vegetable gardening and Minnesota restrictions on
selling homemade baked goods are ongoing. 

Wesselhoeft and her husband and creamery co-owner
Paul aren’t seeking monetary damages, only the right to
“engage in truthful speech about its lawful skim milk.” 

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“Some Folks Lied” – How The Administration Fabricated Obamacare Enrollment Numbers

Two months ago, to much fanfare by the progressive community, HHS, if not Dr. Jonathan Gruber, were delighted to report that as of August 15, Obamacare enrolment had hit 7.3 million sign ups, well above the 7.0 million goal.

Then a week ago we learned that “projection mistakes were made” after the “Obama administration revised its estimate for Obamacare enrollment, now saying – with the bruising midterms safely in the rearview mirror – that it expects some 9.9 million people to have coverage through the Affordable Care Act’s insurance exchanges in 2015, millions fewer than outside experts predicted.”

The administration said Monday that around 7.1 million people across the country who picked plans during the current year’s open-enrollment period were still paid up for their coverage. That’s down from the eight million who the administration said had picked plans as of this spring.

Fast forward to today when moments ago Bloomberg reported, that “the Obama administration included as many as 400,000 dental plans in a number it reported for enrollments under the Affordable Care Act, an unpublicized detail that helped surpass a goal for 7 million sign-ups.

In other words, “some folks lied” because without the dental plans, the government would have had 6.97 million people with medical insurance under Obamacare, investigators for the House Oversight and Government Reform committee calculated, using data they obtained from the U.S. Centers for Medicare and Medicaid Services.

Blending dental and medical plans let the administration assert that enrollment remained greater than 7 million, the original projection of the Congressional Budget Office. The move also partly obscured the attrition of more than 1 million in the number of people enrolled in medical insurance.

The stunned administration, shocked at being caught in one after another lie, is scrambling to make up a credible story: “Kevin Griffis, a spokesman for the U.S. Health and Human Services Department, said he didn’t have a comment yet, hours after being asked for one.”

Maybe they should just let Dr. Gruber explain it all to the dumb American public: after all the voters are so dumb, the difference between 6.9 million and 9.9 million is beyond confusing.

For some, it was clear the administration was about to rig the data:

The administration had supplied information about dental plans separately in earlier disclosures. In May, the government reported that 8 million were signed up for health plans and 1.1 million were in dental coverage.

 

Then in September, the numbers became less transparent. The Medicare agency’s administrator, Marilyn Tavenner, released a new enrollment figure, obtained from insurance companies participating in the exchanges: 7.3 million people were “enrolled in the health insurance marketplace coverage,” she said at a hearing by the Republican-led Oversight committee.

 

Tavenner didn’t elaborate or break out dental plans. Reporters asked a spokesman for her agency, Aaron Albright, for more detail about the number after the hearing: He said he had no additional information about it.

And now, some folks are “appalled”

“After touting 8 million initial sign-ups for medical plans, four months later they engaged in a concerted effort to obscure a heavy drop-out rate of perhaps a million or more enrollees by quietly adding in dental plan sign-ups to exchange numbers,” Republican Darrell Issa of California, chairman of the Oversight committee, said in an e-mail from a spokeswoman.

 

Charles Gaba, a Bloomfield Hills, Michigan-based blogger who backs the Patient Protection and Affordable Care Act and has accurately forecast enrollment, was among those who found Tavenner’s announcement encouraging. He had predicted enrollment would suffer attrition of about 3 percent per month; Tavenner’s figure suggested the rate was lower, only about 2 percent.

 

This is FANTASTIC news,” he wrote at the time.

 

He said yesterday that he is “appalled” to find out dental plans were included in the figure.

And the absolute punchline via Bloomberg: “The 7 million threshold appears to be important for the administration, said Douglas Holtz-Eakin, president of the American Action Forum, a Washington advocacy group aligned with Republicans that has opposed the health law. “It’s a little weird,” Holtz-Eakin, a former CBO director, said. “Usually, the goal is for the forecast to hit the reality, but here the reality is being massaged to hit the forecast.

Yes, just a little weird. “Instead of offering the public an accurate accounting, the
administration engaged in an effort to obscure and downplay the number
of dropouts,” Darrell Issa said. And consider this is the same administration whose media lackeys went apeshit on Jack Welch who, correctly, blasted the White House for fabricating employment data ahead of the 2012 presidential elections.

Because what we have yet again, is outright and very premeditated data manipulation and fabrication coming from the very top power echelons of the republic.

At least today Philly Fed “10 sigma” beat is the god’s honest truth…




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A Major Bell is Ringing… But Investors Are Deaf to Its Warning

They say that they don’t rung a bell at the top.

 

This is incorrect. Tops are almost always marked by clear warnings signs, both from a fundamental and technical analysis standpoint.

 

On that note… we need to point out that the Russell 2000 has lead the S&P 500 to the upside since market began its strong rally at the beginning of 2013:

 

 

This is totally normal. The Russell 2000 usually leads the S&P 500 during periods of “risk on.” But this process also works in reverse with the Russell 2000 usually peaking before the S&P 500 when a major top is formed.

 

Take note, the Russell 2000 has formed a double top:

 

 

Not only has it formed a double top, but it is not diverging sharply to the downside form the S&P 500:

 

 

This is a major warning sign that this latest bounce from the October lows is not to be trusted. The Russell 2000 is a full 9% lower than the S&P 500. If the Russell 2000 doesn’t go absolutely vertical soon, then we are getting a major BELL ringing.

 

Take note and prepare.

 

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

http://ift.tt/1rPiWR3

 

Best Regards

Phoenix Capital Research

 

 

 

 




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5 Reasons The Halliburton-Baker Hughes Deal Is Poisoned

Submitted by Chris Dalby via OilPrice.com,

Halliburton’s takeover of Baker Hughes is setting out to be the oil and gas merger of the year. One of the largest such deals in years, it has not, however, met with unanimous approval. From antitrust concerns to management frictions and negative market forces, this has not been a smooth ride. And with a $3.5 billion break-up fee promised to Baker Hughes by Halliburton should the merger fall through, failure would come at a hefty price. Here are five reasons why the deal might still capsize.

1. Worldwide Regulatory Objections

Halliburton and Baker Hughes have not been model corporate citizens around the world. As reported by the Wall Street Journal, both companies have been fined by the Department of Justice and the Securities Exchange Commission for violating the Foreign Corrupt Practices Act. Baker Hughes was found guilty of making illegal payments to a slew of unsavory countries, including Russia, Nigeria, Angola, and Uzbekistan. Halliburton also broke the record for fines under this Act in 2009, shelling out $559 million to settle claims of bribing Nigerian officials. While, on paper, it may seem that the companies have paid their debt to society, regulators are unlikely to gloss over this troubled past. To prevent this, Halliburton has already volunteered to divest itself of $7.5 billion in assets while awaiting an official verdict by U.S. regulators. But once this is over, regulators in Europe and Asia may also seek to have a say.

2. Growth Is Not Guaranteed

Reports are divided on exactly when these talks got started. The WSJ suspects initial inquiries may have started as far back as 2007 while others think this was rushed through in the face of increased pressure from low oil prices. With a 30% drop in prices since June and with OPEC still refusing to commit to production cuts, it is conceivable that oil will soon be too cheap to profitably drill. This will lead to fewer drills being deployed and some being removed, depriving the likes of Halliburton and Baker Hughes of much-needed income. Their merger will certainly somewhat protect them and land the new Halliburton with a 23% market share in shale drilling. But despite the size of the deal, other global forces risk overwhelming any advantages drawn from it.

3. Unconvinced Stock Market

At the end of the day on Monday, Halliburton’s stock price was down 9.04% after an initial morning spike. Baker Hughes got walloped for 10.3% although this was mitigated by including a massive early morning leap. These figures are not those of fully trusted companies. Indeed, the deal has left investors with a number of concerns. Yahoo Finance reports that the 40% premium being paid for Baker Hughes, “a company that has been a consistent under-performer in the oil patch”, is surprising. Although Halliburton has offered to generously divest, some investors feel that the DOJ may spring at the oil giant’s goodwill to force it to get rid of even more. Worldwide, there is widespread belief that the oil price drop is yet to finish, potentially leaving Halliburton even more vulnerable. Combined, this is too much for investors that are already backing away from high-risk gambling in the crisis-ridden oil sector.

4. Stuck in the Number 2 Position

With a market capitalization of $122.6 billion, Schlumberger still outpunches the new gestalt entity as Halliburton is worth $47.65 billion and Baker Hughes weighs in at $26.6 billion. One of the main reasons Halliburton has given for its acquisition of Baker Hughes was to better compete with Schlumberger, the worldwide oil services leader. This will certainly be a successful move in the Americas, where Halliburton already leads. Worldwide, this is a different story. For example, Schlumberger is in a better place to capitalize on increased drilling in the Gulf of Mexico and its partnership with Anton Oilfield Services has cemented its place in China. The new and improved Halliburton will still have a lot of catching up to do.

5. Management Teams Don’t See Eye to Eye

Last Friday, after days of intense speculation surrounding the deal, Baker Hughes CEO Martin Craighead threw a spanner in the works by issuing a letter stating that his company might well be open to other bids, beyond Halliburton. This was interpreted in various ways but the most sensible reaction was that this was an eleventh-hour tactic to get Halliburton to raise its offer. Halliburton did not take kindly to this stonewalling and threatened a hostile takeover and to replace the entire Baker Hughes board. Over the weekend, things seem to have settled down and a buying price of $38 billion was announced on Monday. However, the integration of the operations of two oil services giants will require a lot of collaboration at the highest level and any lingering animosity will not help.




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Hugh Hendry Live 1: “It Felt Like The Sun Only Rose To Humiliate Me”

In the first of three interviews with MoneyWeek’s Merryn Somerset Webb, Hugh Hendry, manager of the Eclectica Fund, talks about what it takes to be a good hedge fund manager – and how he learned to stop worrying and love central banks.

 

 

Key excerpts (full transcript can be found here)

What makes a successful hedge-fund manager and whether you are, under that definition, a successful manager.

Hendry: I think I’ve always answered that question by relating back to the ability to conceive of a contentious posture. I think if I was to quote from Fight Club, I think there’s a famous saying “Would you rather…” my children would say ,”Would you rather upset God or have God just ignore you?” There’s a degree to which being a successful macro-manager is upsetting, not only God, but to the rest of the world, if you will. By being out there with the articulation of qualitatively intelligent argument, which just isn’t shared by the majority. But which can stand the test of time and come to actually define the future. That is what global macro is all about.

 

With regard to language the notion of ‘bullish’ and ‘bearish’, I think, does an injustice to the complexity of the arguments that are necessary to construct a global macro hedge fund. I think if I had my time again, I would have been saying that we’re actually, perhaps, guilty of the misconstruing of a bull market in equities, for what is actually the ongoing degradation in the soundness of the fiat monetary system. I think that’s what I was trying to say.

You had given in to a bull market that you had refused to accept previously.

The last time I was really angry was late 2010-2011. Where the market, in its wisdom, had yet to configure the changing economic landscape, and it was perceiving that the economy in Europe and elsewhere was recovering.

 

I thought that was just insane, that we weren’t capturing the kind of deflationary zeitgeist that was approaching.

 

I have to say when I look back in the last three years it feels as if the sun only rose each day to humiliate me after that point.

 

 

But the mea culpa, that I think is very necessary in that I found myself unable to forgive the Federal Reserve and the other central banks for, if you will, bailing out Wall Street from the excess of 2008.

 

I just couldn’t get over it. I luxuriated in the polemics of Marc Faber and James Grant and Nassim Taleb, in our own country, Albert Edwards, et al. I luxuriated as they ranted and it was fine for them to rant. But I am charged with the responsibility of making money and not being some moral guardian and certainly not a moral curmudgeon. I had to get over that. So again, back to my infamous letter of last year.

 

That was cathartic for me to say “You know what? I get it.” I think if we’re going to try and explain the qualitative arguments behind why we are more receptive to the notion of not only left tails where markets can fall, but the right-hand tail of the expression, where markets can actually continue to rise if not to accelerate.

 

So I really feel very, very isolated from their view of the world. Arguably, we’re talking about the here and now and the future’s a long time. But in the future, I’m sure our paths can converge once more.

Why do you think that [macro funds] as whole is failing to make money? What’s going on there?

I can reflect on my own difficulties, if you will. What I’ve found is that macro is distinguished, I believe, by superior risk control. It’s almost analogous to a disaster insurance programme. In 2008, all the good macro managers, they made you money. That’s what you pay them for. The world became profoundly unsettling and you cashed in your insurance policy.

 

Today, I question the relevancy of that disaster insurance. In a world where the central banks seem to have your back, seem to be underwriting risks and global asset prices, do you require that intense scrutiny of risk?

So your basic point here is that if the central banks have your back, there’s no need to have the same kind of risk controls that you used to have.

Hugh: There is less need. Less need. I tell you, I was at a conference with some of the great and the good global macro managers in September in New York and I asked them all the question, “If the S&P is down 12% what do you do? Are you selling more or are you buying?” Guess what? They’re all buying. So the central banks have created a behavioural tic which is becoming self-reinforcing and I believe we saw another manifestation of that behaviour in October.

*  *  *

But Raul Ilargi Meijer has a different perspective on Hendry’s change of tack…

Hendry, I think, is as bearish (or negative) about the – future of – world as he has been for a long time, only he’s decided to see things from his fund manager point of view, and to ride the crest of the waves the central banks have tsunamied towards our shores. He’s chosen to make a buck off of them waves, even as he’s aware of the damage they’ll will do once they hit land. In the exact same way as a surfer who sees a tsunami as merely a set of great waves to ride on. And, no value judgment involved, but that’s not what I see.

 

He sees the world going to hell in a handbasket (and Hendry recognizes that very much, that’s not why he shifted gears from bear to bull) and his response is to grab as much money and wealth as he can (for his investors … ).

 

 

Hugh Hendry sees the world in an extremely bearish way, he sees hell, the handbasket, brimstone and far worse. But he wants to profit – in name of his investors (?!) – from the very mechanism that drives the world there: the power central banks and governments have been allotted, and the way they use it to protect the interests of investors, banks, insurance companies and uber rich individuals, all at the expense of booting the 90% who make up the real world and the real economy, ever deeper into the mud.

 

Seeking to profit from that is a choice. Hendry makes it, and so do many others, even many inside the 90%. Who mistakenly dream they’ll be able to hold on to those profits (they’ll wake up yet, and wish they had before). The whole idea of scraping out what you can before the tsunami hits is not my thing.

*  *  *




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Video of the Day: Ferraris, Maseratis and More – How the Children of Chinese Oligarchs Live it Up in SoCal

Screen Shot 2014-11-20 at 11.56.27 AMThe interesting thing about America in 2014, is that the worship of our own domestic criminals just doesn’t cut it anymore. In order to ensure our celebration of corruption is crystal clear to the entire planet, our “leaders” have eagerly opened the floodgates to criminals from all over the world. The most recent focus has targeted corrupt Chinese officials and their children, which makes sense as China is cracks down on corruption. While capital moves to where it is treated best, apparently so does criminality.

I have been highlighting this trend all year, with the post: Open the Floodgates – Chinese Inquiries on U.S. Real Estate Soar 35% After Easing of Visa Rules, being the latest. In that piece, we learned that:

Chinese inquiries about real estate investment in the United States surged 35 percent this week after the two countries agreed to extend the terms of short-term visas, China’s top international property portal said on Friday.

continue reading

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Obama’s Immigration Action: Probably Legal but Also Unprecedented, Productive Policy but Troublesome Politics

In
a

primetime announcement
this evening, President Obama will
explains and defend the details of a sweeping executive action
designed to keep roughly 4 million unauthorized immigrants from
deportation and provide them with legal status to work. Some of the
particulars remain unclear, but the basic outlines of the plan have
been known for months: Obama will use enforcement discretion to
redirect law enforcement, prioritizing deportation of unauthorized
immigrants who have additional criminal records. You can read the
White House’s talking points

here
. Republicans have called the move
unprecedented and illegal
, while the administration,
which seems to be prodding Republicans with the move, has argued
that it’s well within political norms.

As a supporter of expanded immigration and also someone who
worries about executive overreach, I think there are partial truths
in the arguments made by both sides. And while it seems to me that
there are some policy advantages in the maneuver, there may also be
longer-term political and practical disadvantages to consider as
well. 

Obama’s move would probably be legal. For the
last several months, conservatives and Republicans have issued
increasingly apocalyptic denouncements of the Obama’s proposed
action, describing it as a massive legal overreach by the
executive. The most compelling comments to this effect, however,
came not from the right but from Obama himself, who has repeatedly
insisted, over the last several years, that the sort of
enforcement-related order he is expected to announce tonight would
be beyond his authority. The White House is now suggesting that
Obama has not changed his position, just his emphasis, but as
The Wahington Post’s Glenn Kessler lays out in great

detail
, the record is pretty clear: Obama said on multiple
occasions that the president did not have the power to unilaterally
legalize entire populations of immigrants who are not at risk due
to unusual circumstances.

But if the last few years have proven anything it’s that the law
isn’t necessarily what Obama says it is, and as
Reason’s Shikha Dalmia and Case Western Reserve University
Law Professor Jonathan Adler have noted
, the president has a
great deal of authority to set enforcement priorities and exercise
discretion when it comes to immigration law. Even some of the
loudest critics of Obama’s action have come around to the idea
that, at least technically, it would not exceed the president’s
discretionary power, even if it would constitute
an unusual and strained
use of it. 

It would also be unprecedented. The
administration and some of its supporters are arguing
that various presidents, including Republicans, have done the same
sort of thing before, limiting deportment through executive order,
and that makes this well within political norms. This argument
leaves out crucial details about congressional involvement and
support for those previous presidential orders. 

In 1987, under President Ronald, the immigration commissioner
announced that children of parents who had been granted amnesty
under a 1986 immigration law would be granted protection from
deportation. A few years later, the elder President Bush granted
protection to entire families, a move that followed action in the
Senate, and, the following year, was passed by the entire
Congress. 

Supporters of the president
note specifically
that Bush, Sr.’s move offered
protection to about 40 percent of the nation’s undocumented
immigrants, roughly the same percentage as Obama’s move is expected
to legalize. 
But in raw numbers, Obama’s move is
expected to have a much bigger impact, granting legal status to
about 4 million immigrants.

And politically, the actions by Bush, Sr. and Reagan just
aren’t comparable, because both came in the context of clear
congressional support for action on immigration. Reagan’s followed
a large-scale amnesty law, and Bush’s followed Senate action that
would soon become passed by the full Congress.

It would represent a further expansion of executive
power, and norms around using it. 
Just because an
executive action is technically legal does not mean that it falls
within legal norms, and executive power can be expanded not only
through explicit assertions of previously off-limits authority, but
by making use of powers that existed but were never used, or never
used to such an extent. This strikes me as a case of the latter,
especially given the president’s multitude of statements indicating
that the power to legalize so many immigrants is beyond his office,
and the stated reasoning for his change of heart: that Congress has
not acted. When Congress declines to pass a law that the president
would like to see passed, that does not give him an excuse to act.
As President Obama himself
declared
in 2011, his job is to “enforce and implement” the
laws that Congress makes, not to use his authority to circumvent
those laws when he sees fit. Anyone who worries about executive
overreach, even those supportive of expanded immigration, ought to
be wary of the precedent this move, and the thin line of reasoning
behind it, could set.

On a strictly policy basis, Obama’s executive action
might be preferable to a big reform bill.
If you favor
making immigration easier and more straightforward, and think that
draconian enforcement efforts are both wasteful and
counterproductive, then there are real upsides to executive action
when compared to a big congressional overhaul. A major reform bill
would massively increase funding for border patrols, despite years
of increased funding for border security and
little to show for it
and the fact that close to half of
illegal immigrants came here legally and then overstayed their
visas. A comprehensive immigration reform plan would almost
certainly include some sort of E-Verify system, an incredibly
invasive form of workplace nannying which would create huge hassles
for workers and employers, as well as
large numbers of false positives
—making hiring, and finding
employment, an even harder process than it already is.

But unilateral executive action could poison support for
broader, more stable reform.
There’s no question that the
immediate political consequence would be to further outrage
Republicans, and turn a party that has long had a mix of views
about the virtues of expanding immigration into one dominated by
opposition. In fact, this seems to be part of what the
administration wants—to provoke Republicans into a frothing rage,
in hopes that they will do something politically stupid as a
result. (They might oblige.) 

But the backlash might not just be the immediate consequence,
and it might not just be limited to the congressional GOP and its
core supporters; unilateral action might result in a deepened
long-term opposition to greater immigration as well.

One only need to look at the political dynamic in the years
since the passage of Obamacare, another ambitious policy passed
with no opposition party support and a wary public. Democrats hoped
it would provide a path to political victory, but the actual result
was a deep and enduring public opposition that has cost Democrats
in multiple elections.

Similar to Obamacare, about 48 percent of the public
disapproves
of Obama’s proposed action, while just 38 percent
say they support the move. And similar to Obamacare, the
president’s actions are making some Democrats nervous too. And just
as before, supporters are arguing that opposition will
blow over quickly

I wouldn’t bet on it. Unprecedented, large-scale, unilateral
policy changes are nearly certain to produce a backlash—against the
president, against his party, and against the ideas at the heart of
the policy change itself.

To me, this is the most significant risk of Obama’s plan—that it
will create a backlash, not only amongst congressional Republicans,
but across the public at large, a backlash that makes it more
difficult to achieve a stable, legal, and politically viable system
of expanded and simplified immigration, one that is not dependent
on a sympathetic executive or enforcement discretion, but that is
codified in law and agreed upon by enough of the country’s
residents and legislators. This is not to simply condemn Obama’s
plan, but instead to warn enthusiastic supporters that the choice
to act at this time, in this way, without legislative backing or
public support, might be satisfying in the moment, but also stands
a real chance of poisoning opportunities for a better, more lasting
solution at some point in the future. Consensus is hard, and
sometimes it seems impossible, but in politics, it’s also
important. 

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Behold The Surge In Real October Earnings

Who says there is no wage growth in real (or nominal terms)? After real wages failed to rise in real terms on 6 of the past 7 months, here courtesy of the BLS is the unprecedented surge to real average hourly earnings that took place in October.

 

A slightly longer-dated chart show that real wages are almost back to the level they held when the S&P was trading at 666.

Trickling-down Keynesian masters of central-planning, we bow down to you.




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