A Perfect Storm

Is the collapse of the US market only about the pandemic? True the shut downs have crippled the economy, but since markets react to a horizon 6-9 months out, perhaps there’s more to this. Obviously COVID19 is serious in and of itself, so yes it is indeed an immediate source of the recent market collapse, but also a catalyst for exposing other problems of a more systemic nature:

  1. Credit – The economic impact of COVID19 will be to all market sectors, not just tourism and entertainment. Those companies that have run up debt, some to the point of “zombie” status, i.e. earnings less that debt service, will have even less earnings and will be even more financially distressed, perhaps fatally; this will make the high yield corporate bond market even less attractive than it already is; markets would price that in. 
  2. Fed Reaction – The recent Fed rate cuts were ill advised as there was already plenty of liquidity, perhaps too much.  It will not really mitigate the impact as debt will not go away and much of it was already at interest rates that are not retroactively affected. The Fed showed both panic at a time when sober reaction was needed and a loss of confidence in its own appraisal that the American economy was fundamentally sound; markets react negatively to both.
  3. Energy Glut – It’s the Saudis versus the Russians.  In reaction to what was already weak demand and gross over supply, OPEC wanted a cut in production.  A seemingly sensible proposal even for a cartel. Russia, whose economy is as dependent on energy as the Saudi’s, refused to go along and went for even higher production.  The obvious happened and the oil market collapsed. This will hurt American shale production as the technology costs make that unprofitable.  Natural gas prices tend to move with oil, so that will also impact the energy sector, and with such cheap carbon fuel costs, alternative energy will be even less competitive. For perhaps 3-4 years the energy sector is toxic to investors and that will create serious long term problems.  
  4. Federal Debt & Budget Deficits – Political campaigners may not be talking or even thinking about this, but markets do, especially regarding sovereign debt. It has reached the point where traditional foreign purchasers of US bonds, such as China and much of the EU, are reducing not only new purchases, but not turning over maturing bonds. Given the worldwide economic collapse they will have their own issues selling debt.  No one any longer seems to believe that the US has a plan to address its $23T debt, especially with the Cares Act and corporate relief bailouts resulting in even greater annual deficits and campaign talk of even greater spending. It’s becoming apparent to the markets and even in the mainstream media that we are running out of road to kick that can down, and we could face a credit crisis worse than 2008, and at the worst possible time.

The stock market was an attractive alternative to bonds for yield, and the bond market an attractive alternative to stocks for security; so what happens when both turn ugly?  With all this selling, the money is going somewhere, but not into investments, and that could see a credit freeze such as we saw in 2008.  While the banks are supposedly more financially sound, meaning fractional reserve ratios are higher with the mandate for stricter stress testing, where does that leave the highest consumer debt of all time? If we are on the doorstep of a recession as many say, if not depression as few will, how can Americans repay that debt?

Generational pandemics such as COVID19 have happened before and will likely happen again, like The Spanish Flu of 2018, MERS, and SARS; but when a culture of debt and consumption is faced with such an event, we have a perfect storm creating an even greater existential threat, one of our own creation.

#perfectstorm

Life Suspended

An open letter to President Trump:

Please don’t hold this against me, but I did not vote for you in 2016.  It’s also unlikely to happen in 2020.  I know you fire people who disagree with you, even if they are just doing their jobs, but I don’t work for the government.  The truth is I would never work for the government so I assure you I pose no threat to you other than a single vote you may never have.

I also think that you will likely win the 2020 election for no other reason than the simple fact that while your opposition says they represent some better alternative to you, they can’t even represent what that means.  In effect your single strength is that you actually represent virtually nothing at all other than some notion that you are not them and therefore better than whatever they say they are.  If that seems confusing it’s because it is and therein is your advantage.

So here’s my single and simple request– end the shut down now! I’ve already read how you do not have the power to decree a lock-down, and that any such powers that may exists to do so lies only with the States and not the Federal Government – that’s great news. However, I plead the case that the States are killing Americans, violating their civil liberties, and bringing the American people to ruin. The consequences are far worse than the flu they are meant to fight.  Another case of the road to hell paved with good intentions….but I’m not sure there are even good intentions.

Right now I entitled this open letter as a “Life Suspended”.  I think soon it will be “Life Terminated”, and I’m not referring to COVID19.  I’m referring to the end of America’s economic life, and all the destruction that comes with it. 

Be a savior and free the people!

#lifesuspended

Politicizing COVID19

We should avoid politicizing this crisis with recounting all the dumb things that politicians have said; that would be a full time occupation and it really detracts from the central issues of not about what they said, but about the egregious things they have done.

We’ve heard so much about the need to “flatten the curve”, yet there is no longer a curve to flatten.  The “curve” is now a vertical line straight up the Y axis, and will accelerate with the ever increasing testing, most of which is in NYS. That’s only logical as the more you test, the more results you have, and only proves the point that this virus does what all viruses do. All the modeling and geometric progression analyses will do nothing as reliable epidemiologists already know.  What we need is empirical data, and the greater the statistical base, the better the data. 

By all means we as citizens should use our common sense as with all viruses:

  1. Practice careful hygienic and sanitary procedures.
  2. When sick, see a doctor and stay at home.
  3. The medical industry needs to provide protective equipment for health care providers.
  4. The medical industry needs to provide ICU equipment, such as ventilators and respirators.
  5. The medical industry needs to provide research for treatment and eventually vaccines.

Cuomo had the foresight to bypass the sclerotic FDA and CDC and allow all POC facilities to do testing and to commission the 200+ licensed laboratories in NYS for results.  While he deserves credit for doing the right thing, his culpability in lock-downs is something contrary to his own stated instincts about fearing panic, which is a disease that spreads instantly and is a far greater threat than COVID19.

Sweden has not instituted the same draconian measures as the US and other countries due to their concern about the long term damage to their economy with lock-downs; they actually thought about the consequences of such policies, like how destroying an economy will lead to impoverishment and related health issues.  That’s really no surprise given Sweden’s far reaching visionary reforms taking the country out of the horrors of socialism as the unsustainable costs reached 70% of their GDP and high taxes were eviscerating their economy.

While the US government’s political policy reactions to 911 resulted in a severe degradation of our liberties, the government’s COVID19 policies will do the same to our economic wellbeing and freedoms.

# PoliticizingCOVID19

When Leadership Panics

A few Days ago in a televised interview Governor Cuomo said something that I think was very wise, basically that he feared panic more than COVID19. I wish the Governor would act accordingly as his draconian measures are spreading the panic he says he fears; they are ill-advised and will do far more damage than the disease, actually proving his initial instincts correct.

Panic is defined as sudden uncontrollable fear or anxiety, often causing wildly unthinking behavior. Well we’ve certainly have had plenty of that, but in this instance, it is particularly toxic. Many economists are judging Wall Street’s reaction as irrational; assume they are correct, but if financial panic is a bad thing, we should realize that government panic can do much greater damage in far less time.  

While statistics are changing from moment to moment, as of today, 03/24/20, on a worldwide basis, deaths from COVID19 are about 18,000 of the 418,000 cases reported; more than a third of which are in Italy – more on that later.  Consider for a moment that the 2019/2020 seasonal influenza has killed over 50,000 people and counting in the US alone, and we get some perspective of where we are from an epidemiological viewpoint.

You’ve heard from all sorts of talking heads at the CDC and WHO all kinds of dire predictions about death counts in the millions, yet China, the origin country of this pathogen, is experiencing ever declining rates of infection and related deaths.  Granted, China’s track record on reliable information is suspect, but South Korea is experiencing the same.

In a recent interview, Richard Epstein, a highly regarded legal scholar, also well respected for his analytical studies on previous epidemics like HIV, cautioned against the very panic and draconian measures such as the lock-downs we are seeing in California and New York.  His insights are well worth considering; his particular concern is that the rash and senseless government acts shutting down the country will result in a far greater economic catastrophe than the Corona virus would otherwise cause.

Epstein makes particular reference to the poor epidemiological work done so far that is based purely on a geometric progression calculation only, without consideration of all the other factors that such studies are supposed to include, such as causation, transmission, outbreak investigation, surveillance, forensics, environment, age, occupations, screening, biomonitoring, and comparisons of treatment effects. Obviously this takes access to data, and time, but time is what you take to have the knowledge necessary to make rational decisions that don’t have dire consequences.

The goal of a properly conducted epidemiological study is it to get the necessary knowledge about a disease from which such sound decisions can be made; panic obstructs this goal. What we should demand from our government leaders is a calm acceptance of the fact that we have a serious health problem with no basis in fact to judge what needs to be done until science solves it and then assess the situation rationally, not to panic as they have done. It’s a case so far of shoot-ready-aim.

What we don’t need is to feed the frenzied panic with drastic draconian measures like shutting down the economy, flooding the credit market with even more debt, spending trillions of dollars from already empty pockets, eviscerating an anemic dollar and driving the US into a recession or even worse. The US is not supposed to be some authoritarian third world country incapable of sound judgements. You don’t address pandemics with political and financial measures; pathogens don’t care about such stuff.

As mentioned earlier, the phenomenon of why Italy has suffered so badly, even worse than China, comes down to the simple fact Italy’s healthcare system is hopelessly inadequate for everyday services, let alone a pandemic. Add to this that they have one of the largest aged populations on the planet, perhaps second only to Japan. Consider the fact that 87% of the deaths in Italy are those 70 years or older, and the median age of those hospitalized is 67. It also doesn’t help when you have a health care system so eviscerated by socialized medicine in a country that has been in a recession for years.

The US is ramping up testing and likely the number of infected and those dying will increase, but for the government to go into such a panic indicates more the fact that politicians are afraid of a perception of inaction, mostly created by the media binge, than sending the US into an economic collapse that will create even greater suffering and related health issues.  To cover their irresponsible behavior, they will look to blame everything and everybody rather than themselves; in essence, they are more concerned with themselves than the good of the citizens they are supposed to serve.

What we should do is have a little more courage and common sense.  This brings to mind a great observation from an ancient philosopher named Seneca:   “We are more often frightened than hurt; and we suffer more from imagination than from reality.” 

#COVID19PANIC

Institutional Racism

The US Census contains many questions, but about 25% are about race and ethnicity.  Racial profiling made the social lexicon with stop-and-frisk, and other painful practices by the government throughout the country, and people of all racial and ethnic backgrounds rightfully raised their voices against it. 

Why then does the Census get a free pass? This is clearly a form of racial profiling as it seeks to categorize Americans according to racial and ethnic characteristics.   What we must understand is that racial profiling, no matter the source or intent, is racism.

The detail into which these questions go is mind boggling given this countries long struggles with this issue. So what is the US Government doing practicing racial profiling?  The purpose we are told is to better understand the diversities of the population; that raises an existential question, which is why would there be a differentiation of anything in government based on race or ethnic background when we are all equal before the law?

This was never the intent of the census. Article I, Section 2 of the U.S. Constitution mandates that an apportionment of representatives among the states must be carried out every ten years. Therefore apportionment was the intended legal purpose of the decennial census by our nation’s founders and the framers of the constitution, which makes sense when considering how to structure a representative legislature.

To insert race into the census is as bad as perpetuating the three fifths rule in dealing with the black slave population prior to the 13th and 14th Amendments.  It reeks of the very toxic practices of the post-Civil War era with its Jim Crow laws, or the persecution of the Jews in European history, or today’s bias against Muslims, or the anti-immigration policies focused on Hispanics and Latinos.

When there is any judgement or decision based on race, you have that cursed cancer known as racism, and as a nation and a society we have struggled against this since the republic was born. To have government blatantly practicing racial profiling is to have institutional racism. This has gone on for quite a while now and it’s about time that Americans stand up and refuse to answer any of the census questions about race or ethnicity.

#CENSUS2020RACISM

The Match That Lit the Fuse

COVID19 killed 389 Italians Saturday, accounting in one day for 25% of Italy’s death toll to date. Italy’s medical structure has been exposed as systemically inadequate, especially in a crisis, and is reduced to triage protocols.

According to the WHO, as of last Friday, excluding Italy, the rest of Europe accounted for 7% of the world wide COVID19 infected population, whereas the worst affected countries of China, Italy, Iran and South Korea represented 75%.  Given the late response to COVID19 by the US we only represented .9%; likely a misleading statistic at this point given inadequate testing.

One positive note was the precipitous decline in the infection rate in South Korea, a relatively small country that amazingly reacted almost spontaneously with widespread testing and development of successful treatment protocols (not cures!) of those infected. We should send a medical task force there like yesterday to learn from South Korea. How there is anyone in the US who doubts the severity of this pathogen is amazing; has our illiteracy rate risen lately?

Now all the talk about COVID19 as the perpetrator of a likely recession is also a sign of illiteracy – it is more like the match that lit the fuse! The Fed has caused a deep lack of confidence in the market with such panic moves as interest rate cuts, postured as a concern for liquidity; it’s like concern for a man dying of thirst while drowning in a lake. It was such manipulations for more and more liquidity that brought on one recession after another over the years and this movie is no different – likely worse.

The match was serious as COVID 19 will burn businesses big and small, but the strain on what we were told was a strong economy was the short fuse as that was just bad economic reporting based on even worse statistical posturing; and the powder keg was a credit bubble and it went BANG!

It is true that this is not the 2008 Financial Crisis, but that is misleading; the truth is this is the result of all the bad things the FED and the UST did to “recover”, like QE.  If QE was such a success, did you ever ask yourselves why we had QE2 and QE3? Why the Fed’s balance sheet is still so hopelessly bloated?  Why we needed rate cuts during a strong economy? If you kick the can down the road long enough, you better hope you don’t run out of road.

So since early March the DJIA went from an all-time high of over 29,000 to today’s close near 21,000. I think a 30% fall sounds more like a collapse than a correction, so let’s get real, this is not the 2008 Financial Crisis; this is something much worse.

#COVID19ECONOMICS

Close Encounters

I am not a superstitious person, but I don’t discount fate. I think fate in most cases is created by something you do or say, resulting in someone reacting to that, and in turn you responding, and suddenly you’re in a conversation that you never expected; suddenly fate is at play, unintentionally created.

Such is the case with my close encounter on the virtual market place of ideas called social media.  I came across some articles on Vox Populi that I found interesting and thoughtful, providing perspective on issues that engaged me despite the source, and I commented.  Vox Populi is in the words of its founder and publisher Michael Simms “… unashamedly progressive in its approach to politics…” Now as I have written before, the political label of “Progressive” to me is ambiguous, at times also exclusionary, and at other times bordering on deceptive to avoid being viewed as synonymous with socialism; labels in politics can be as misleading as those on cereals.

My comments apparently were well received and precipitated a series of exchanges with Michael Simms. So here you have an avowed Libertarian and Progressive connecting because of comments I made about articles he published that I found interesting and engaging. The articles were about the torture the US engaged in on the War-On-Terror, an obviously slanted test posted for readers to take based on song lyrics composed with a progressive message, and the US Warfare State.

So what is the perspective provided to me?  Well for one, this exchange reinforces my concern about labels.  What is a progressive anyway, other than an overused and at times generalized label, same as can be said about libertarian; in that sense we share a similar fate, i.e. generalization for media dissemination.

To some degree this is a self-inflicted wound.  Most who identify with these labels insist on certain characteristics that exclude others who may share many of the same beliefs. A consequence of this syndrome is the inability to define principles that can be communicated coherently. For those who are like me libertarians, do you know that there are those who also share that “label” but are socialists?

To be clear, I believe a libertarian is someone who supports a civil society founded on the core existential reality of the basic natural right that every individual human being owns themselves; from this all other rights are derived, and that this in turn “progresses” to how individuals interact not only in their own self-interest, but as a society.  Politically this means a system that protects individual liberties, and economically freedom in the market place to pursue what each individual sees as their own interests, free of coercion to the contrary.  

What I have found problematic in understanding progressives is ambiguity, and in some cases hostility, in this regard.  What I saw in these articles were connections to core libertarian beliefs, even if unintentional, but nevertheless apparent. I was well aware that Vox Populi was a progressive publication, which made what I read even more engaging.

At one pint Michael invited me to write an article, asking “…would you have an article that is possibly publishable in VP?”, and at another time asking me to write an article for publication on VP for his review to see if it would be “…a good fit for Vox Populi.” 

Those last exchanges were disappointing, an opportunity lost. I think that all Americans, regardless of political affiliation or perspective, would agree that our current environment of tribal polarization is toxic to a productive political discourse. So call me a hopeless romantic, but I thought that a bridge across the political riff could be built based on some common ground like aversion to war, torture, etc.

Michael’s last message was “Thanks, John. I’ll continue reading your posts. Take care, Mike.” That last phrase “take care” is like a closed door, a farewell message essentially signally that we are not open to any ideas we find contrary to our own. I’ll have to live with that, but those at Vox Populi should not. The worst service we can do for our readers is to either cater only to what we think they want to hear, or insulate them from what we think they don’t.

#CLOSEENCOUNTERS

Fractured

“Once upon a time I was a liberal, ……..”  That’s the opening line by Brandon Straka in his YouTube and FaceBook video of 2018, in which he explains why he walked away from the Democratic Party, alienated by much of what it had become despite all the years he considered himself a Liberal. That video went viral, getting 650,000 YouTube views, over a million on FaceBook, and spawned the “Walk Away” movement.

Then there’s the “Never Trump” movement of disaffected Republicans, alienated by his behavior and chaotic administration. While this is more a movement within the Republican Party than about one leaving it, it is also symptomatic of those troubled with their party’s direction and leadership, and has accounted for a decline in support.

According to the December 2019 Gallup Pool, 28% of voters identify themselves as Democratic and 28% as Republican, whereas 41% consider themselves independent. While that poll leaves 3% unaccounted for, it’s close enough.  Of those independents, 43% “leaned” Democratic and 45% “leaned” Republican.

I’m not sure what “leaned” really means, but in a more general sense, even accounting for the variances with polls, it’s pretty much a dead heat. In a Pew Research Center study, the percentage of independents has about doubled since 1944. These polls are for 2019 and they and the studies about them are on a national level, with the percentages within prior time frames and in each state varying substantially, but clearly the largest growth politically has been with independents.

For the Democratic Party, which considers itself in general to be “liberal”, the polarization/fracturing within the party is most striking especially when viewing the primary debates and elections. The DNC has expressed understandable concerns about this, but there’s something that until recently was not so apparent, and that is this growing number of Democrats leaving the party. In 2018, as the midterms elections showed, those percentages for the two main parties were 32% Democratic and 23% Republican; two years later, we have a different situation.

Now there’s understandable concern in the RNC also with the “Never Trump” movement, but it does not seem to have as much of an impact as does the “Walk Away” movement for the DNC.

I do not subscribe to political labels per se, but there was a time when true liberal thought spawned the Age of Enlightenment, a movement that helped to create many of the world’s democracies, including our own. Measured against that standard, neither of our two major political parties is truly liberal at all as overtime they devolved into power brokers, grooming their candidates and spinning their platforms to attract a base sufficient to absorb or exclude other parties, until they were the only two left standing.

What is reported in the media as polarization is not entirely accurate or informative.  It is more about tribalism versus individualism, it’s about selling guilt and blame, it’s about negativity versus productivity, it’s about class warfare, the warfare and welfare state, it’s about racism, homophobia, misogyny….it’s about all that but ultimately it’s about ignorance.  It is not a coincidence that the hate factors rise as literacy in America declines.

What the two main political parties are not about is addressing that; what they are all about is power and what it takes to win it. At this point they are so fractured and polarized that regardless who wins you will have either a more authoritarian administration or something more like the myopic stagnation we currently have, or some dystopian combination of both.

Perhaps this is the end of the Democratic and Republican Parties, at least as we now know them, and the beginning of the rise of a multi-party political landscape where political power is decentralized, allowing other voices to be heard, diluting the ability of the super parties to dominate, forcing them to seek coalitions to win majorities.

Perhaps that can lead to a decentralized political system where the people at a more local level call the shots, and not some bloated Leviathan in DC. Let’s not forget that there used to be such an America, and maybe we need that back.

#FRACTURED

Blood Sport

If you watched the Democratic Presidential Primary debate on 02/19/20 you witnessed a poorly moderated chaotic event, more similar to a prison riot than civil discourse. While there was plenty of name calling, principled debate was for the most part absent. It is difficult to pick a “winner” based on coherent and principled platforms of the candidates as the bloodletting consumed so much time to really allow for that, and differentiation in this regard remains ambiguous.

Appalled as I am by Trump’s actions and behavior, I was looking for a decent Democratic alternative to voting for a Libertarian as I always do; having seen the debate, here are my takeaways:

  1. Michael Bloomberg can’t debate.  He was stiff and pedantic, as if presenting at a technical corporate event. He was unable to handle what he should have known was coming his way regarding his wealth, misogynistic history and stop-and-frisk policies as mayor, not to mention his opportunistically flipping party loyalties. He may stumble into the convention as a possible “centrist” or “moderate” alternative hoping for a brokered win, but he failed miserably in this debate and will likely fall in the polls and do poorly in the Nevada primary.
  2. Elizabeth Warren is repulsive, like Nurse Ratched from “One Flew Over the Cuckoo’s Nest”. She lent little to the debate as far as policy or ideas are concerned. Probably because she has fallen so dramatically in the polls she felt compelled to viscously attack everyone else, especially Mike Bloomberg, who admittedly was very vulnerable, and ill equipped to respond effectively. It was a desperate scorched earth approach in the hopes of remaining relevant long enough to get to the convention. 
  3. Bernie is…well, Bernie, the proud honeymooner in the USSR, Soviet loving and table thumping avowed socialist. He is making huge inroads with the younger electorate to become the current leader of the pack, so if you are a socialist there’s no need to vote for any other party if he wins the Democratic ticket.  The DNC leadership is scarred he will do just that and is desperately looking for an alternative, but based on this debate there may not be one. I did see that some of the other candidates hit Bernie with concerns about the violent approaches by some on his staff and supporters; alarmingly, Bernie’s responses were at best unconvincing.
  4. While Sleepy Joe was more awake than usual, he put forth a performance based on platitudes and association with Obama, in effect looking like someone who needed an intellectual walker to get through the debate; no, it will not be Biden, as a candidate he looks like a dead man walking, even though he’s likely to make it to the convention.
  5. Pete Buttigieg is an intelligent talker in these kinds of political debates where substance is a low priority.  FDR was also a good political debater who once said that the trick is to never really take a position you can’t change, and never provide any real detail to what you propose. In that regard, Mayor Pete is his heir apparent, spouting grand hyperbole with interpretation wide open.  His shallowness was most apparent when he attacked Amy Klobuchar for forgetting Mexican President Obrador’s name. Making togetherness a presidential platform is more effective for kids watching Mister Rogers’ Neighborhood.
  6. Amy Klobuchar came across as the most sincere, decent and intelligent of all the candidates.  She made an honest attempt to actually answer moderator questions and showed poise and humor in responding to attacks. She should be that potential DNC choice for a moderate or centrist candidate, an alternative to Bernie, but unless she continues to rise in the polls and win more delegates, she may not make it to Milwaukee. That would be a real loss for the Democrats from a decency perspective, but I doubt that’s what their looking for.

What I think what was missing or scarcely and/or poorly addressed in the debates, which is significantly due to a really poor performance by the moderators, were issues such as:

  1. The budget deficit and national debt were hardly mentioned and only obliquely.
  2. Answers as to where the trillions of dollars all the candidates, with the exception of Amy Klobuchar, where throwing at all the various issues raised was going to come from, as if spending from an empty pocket was a rational and responsible approach.
  3. Ending the senseless, immoral and endless wars the US has waged, wasting lives, money, assets, not to mention good will.
  4. Ending the war on drugs that has done nothing in addressing addiction, but has created the largest proportion of incarceration in the world, especially among poor minorities, squandering trillions of dollars, and enabling rampant corruption.
  5. The senseless, polarizing and irrational class war rising in this country due to a lack of economic and civic education, where being rich and/or successful is deemed evil.
  6. The lack of respect for individual rights, especially those as guaranteed in our own constitution; the most glaring example is free speech suppression, especially in our universities.
  7. The lack of financial accountability, not only in government, but among our banks, businesses and consumers who have created the largest debt burden in US history, clearly unsustainable.

These are just a few of the issues that I think the moderators should have focused on for the candidates to have addressed.  The moderators should also have provided the opportunity to have done so by deflecting the vicious attacks and redirecting the debate to issues of substance as that’s their job.

While there was significant talk about the need to beat Trump, it remains talk as this debate was more blood sport than a show of potential leadership. If this is the best that the Democratic Party has to offer, then they have a long way to go if they want the White House come November.

#BLOODSPORT

What are we missing?

On February 13 the Senate passed a War Powers Resolution regarding the President’s ability to use military force against Iran. Although it had bipartisan support, it lacks the votes to overcome a veto.  It is not entirely clear why such a measure is required given the Constitution’s clear and unambiguous language of Article 1, Section 8 that only Congress has the power to wage war. 

Further, we already have a War Powers Resolution with the force of law passed by both chambers of Congress in 1973 that requires the President within 48 hours of using military force to advise Congress and explain what has happened.  Without Congressional approval for making war, any military action is limited to 60 days plus time to disengage from the conflict involved.

The recent Congressional resolutions, which apparently are not the same in the House and Senate, were a reaction to the killing of an Iranian general, increasing the threat of war between the US and Iran. The resolution was not a reflection of the Constitution’s requirement for congressional approval, but a specific act regarding a singular confrontation. The 1973 resolution was a reaction to the Viet Nam War, and it became law regarding all military actions.

The recent impeachment proceedings and subsequent trial were a reaction to the use of coercion in withholding military funding for Ukraine against Russian aggression.  What was lost in this tumultuous but ultimately futile process was the incorrect presumption that the US is involved in any way in some alliance or treaty with Ukraine obligating us to throw $391M in military aid into that conflict. That Trump is guilty of an abuse of power is apparent from his own words and actions, but that must be differentiated from the foreign conflict involved.

Ukraine is not a member of NATO or any alliance or treaty with the US.  Also, Congress has not to the best of my knowledge declared war with Russia which would legitimize aiding Russia’s adversaries as we are doing. It is also historically factual that Ukraine has been an integral part of Russia for centuries and that the language of the country is not Ukrainian, as few Ukrainians even know how to speak it, but Russian, and demographically, culturally and in large part politically closely tied to her.  It was not until the collapse of the Soviet Union that this began to change, but this is an issue for Russia and Ukraine to resolve; the US should not to be a party to this conflict any more than those in Syria, Iraq, Libya, etc.

We should not confuse this situation with reference to Russian cyberattacks aimed at the US elections.  Russia has been using propaganda tools to destabilize foreign politics for a very long time; social media is just a modern tool it now has in its arsenal, but it is not the only country to do so as China and the US do the same thing.

I have been given arguments such as Ukraine has been interested in joining NATO, but the fact is they are not a member, therefore it is irrelevant until such time as they are. 

Another argument is that the assistance to Ukraine has been to provide defensive weapons as compared to offensive, and therefore there is no  need for a declaration of war. It is irrelevant what the nature of the military assistance is, i.e. defensive or offensive weapons, as the distinction is one without a difference in regards to armed conflict. That Russia is the aggressor or Ukraine the defender, foreign military aid to either party constitutes a priori an alliance in the conflict, a de facto declaration of war. The question remains, has Congress voted an act of war with Russia?  If not, our aid is illegal.

Yet another argument that has been offered  is that we provided military assistance to England in WWII before a declaration of war against Germany under Lend-Lease, formally titled an “Act to Promote the Defense of the United States”, enacted March 11, 1941.

While that is factually accurate, it is not a justification, but bringing up Lend Lease does raise a larger historical context that must involve WWI and the genesis of Hitler’s rise to power, which was in turn the cause of WWII. 

Lend Lease was FDR’s work-around to the 1934 “Johnson Debt Default Act” that forbade US assistance to any government that reneged on debt to the US, which the UK did regarding its debt to the US during WWI. In fact, it was that very debt that was the basis for Lord Keynes’ insistence on the infamous Article 231 in the Versailles Treaty specifically because the US refused to forgive the UK its war debt. Initially Secretary of State Dulles rejected Keynes article as dangerously punitive as it would contrarily raise Germany’s thirst for revenge to another violent level, and history proved him right.  However, good old war mongering Woodrow Wilson pounced on Dulles and the US eventually supported Keynes. Subsequently, Keynes got the UK to renege on its war debt anyway.

Military assistance to either side in a conflict is in fact a de facto declaration of war on the other.  Germany didn’t respond to Lend Lease as such because strategically it was not in their interest to do so. You may recall that they never did declare war until after Pearl Harbor, and also that Germany was understandably irate with its Axis ally Japan for precipitating America’s entry into the war.

Keep in mind that the US entry into WWI was based on propaganda promulgated by Wilson’s administration, specifically that Germany killed Americans in the sinking of the Lusitania, a British ship.  Disregarded was the fact that the Lusitania’s manifest included war munitions that the UK had purchased from the US, and was also carrying passengers, including Americans.  The British were using passenger ships as cargo ships in getting war supplies; Germany was not afforded that opportunity.

Decades later FDR, desperately wanting to be a wartime president, cursed with the same blood lust as Wilson, needed a way to get involved.  He knew that America wanted no more to do with the constant blood feuds of Europe, and he was obstructed with the Johnson Act, so despite domestic opposition he devised the work-around we know as Lend Lease.  It was not FDR’s motive to fight Fascism, or anti-Semitism, it was his statist lust for power.  Not getting Germany to take the bait, he pushed for and got onerous policies regarding trade with Japan which led that fool to attack Pearl Harbor.

Now by no means do I propose that the US should not have defended against the AXIS, but understand that was a monster of our own creation, and we have continued to create such monstrous situations as we sink into the imperialist trap of a Warfare State.

I have little empathy for either the Republican or Democratic view regarding Ukraine as I see little difference between the two.  What they are fighting about is Trump’s use of foreign aid as leverage for domestic political advantage as corruption and abuse of power, but not the constitutional legitimacy of that foreign aid to begin with.

#WARatWHIM

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