RedStateEclectic

Letter from Nebraska

 

Here is what Buffett is talking about.

Saving the Titanic - An Alternative Currency

Image credit.

As the two pieces below show, imagery drawn from the Titanic's disaster enjoys much currency these days, even though the anniversary of the super-vessel's sinking is still five days away.

I consider the Vieira interview (bottom of post) especially noteworthy - a very serious attempt at finding a practical way to fundamentally change the monetary framework of the USA. Vieira makes one wonder: will perhaps Nebraska spearhead a new American currency?

But first this:

We are like passengers on the Titanic ten minutes after its fatal encounter with the iceberg: the idea that the ship will sink is beyond belief.
 

As we all know, the "unsinkable" Titanic suffered a glancing collision with an iceberg on the night of April 14, 1912. Ten minutes after the iceberg had opened six of the ship's 16 watertight compartments, it was not at all apparent that the mighty vessel had been fatally wounded, as there was no evidence of damage topside. Indeed, some eyewitnesses reported that passengers playfully scattered the ice left on the foredeck by the encounter.

But some rudimentary calculations soon revealed the truth to the officers: the ship was designed to survive four watertight compartments being compromised, and could likely stay afloat if five were opened to the sea, but not if six compartments were flooded. Water would inevitably spill over into adjacent compartments in a domino-like fashion until the ship sank.

We can sympathize with the disbelief of the officers, and with their confused reaction, simultaneously reassuring passengers and attempting to goad them into the lifeboats. With the interior still warm and bright with lights, it seemed far more dangerous to clamber into an open lifeboat and drift off into the cold Atlantic than it did to stay onboard.

As a result, the first lifeboats left the ship only partially full. Only when it became undeniable that the ship was doomed did people attempt to "make other arangements," but by then it was too late.

The tragedy was a cruel mix of human error (entering an ice field at nearly top speed, 23-25 knots), hubris-soaked planning (only enough lifeboats for half the passengers and crew) and design flaws: the high-sulfur iron hull plating did not bend when struck by the ice, it shattered like china.

As noted above, the watertight compartment design was also flawed; indeed, some studies have found that the ship would have stayed afloat an additional six hours had there been no watertight compartments, as water would have sloshed evenly along the entire length of the vessel.

I think this perfectly describes the present. Our financial system seems "unsinkable," yet the reliance on debt and financialization has already doomed it, whether we are willing to believe it or not.

Read the entire post.

 

And now, Dr. Edwin Vieira, Jr., Constitutional Attorney and Author, and his plan for a Constitutional alternative gold and silver currency, run at the state level, to bring sound money to America.

 

Beyond Politics

I have come across a book entitled Beyond Politics in a reading list provided by Don Boudreaux.

He described the book as the best introduction to Public Choice he knows of.

Yesterday, I started reading Beyond Politics. I am at page 110 of 220.

It is a truly excellent book. Easy to read, thorough, comprehensive, graphic.

It is a bit of a puzzle to me how it can be that we know so much about government failure (the subject of public choice), and still predominantly behave as if government is the all-purpose producer of benign solutions to almost any problem or challenge under the sun.

It so happens, The Independent Institute has this interview with one of the two authors of the earlier 1990s editions (see cover image).

I find Simmons' chuckle somewhat irritating, it sounds like a dog sniffing or panting. However, what counts is that he has coauthored a book that every grown-up should read. 

Note what Simmons (to the right) has to say about his own experience in an active political career.

 

A Glimpse of Nebraska Politics

For those who don’t live in the Cornhusker state, it would be tempting to think that we don’t really play “rough and tumble” politics.  But, that’s not necessarily the case.  Although Republicans are the dominant power in the state (holding all of the constitutional offices—executive branch—in the state, as well as 4 out of 5 of our federal seats; not to mention a significant majority of our officially non-partisan legislators are actually registered Republicans), some of the Democrats understand how to play tough:

Gov. Heineman, who days after his re-election in 2010 announced that he would NOT be a candidate for the U.S. Senate, thus opening up the 5 way race we currently have between the current State Treasurer (who used to be the Attorney General), the current Attorney General, a current State Senator, a businessman and a young veteran—has more recently (since Sen. Nelson announced his retirement) been not-so-definite about his unwillingness to run.

The assumption is that Heineman would be the presumptive favorite for the GOP nomination if he ran, although I’m not actually sure that would be the case.  It seems to me that the three candidates who have been running for almost a year—in one case longer (current Treasurer, Don Stenberg, and current AG Jon Bruning, and businessman Patrick Flynn) might have a little something to say about that, after spending significant time and treasure running.

The Republican Liberty Caucus of Nebraska is sponsoring the first debate of the primary campaign on February 11. So far 4 of the 5 declared candidates have agreed to participate.  The nominal favorite (assuming Heineman doesn’t run), Attorney General Jon Bruning, has yet to confirm his participation, and has indicated that he probably won’t be there, suggesting that he isn’t going to debate anyone until the “field is set.”

Strategically, that might be a good idea for the Attorney General—if Bob Kerrey is the Democratic candidate, and Gov. Heineman doesn’t get in, then as the current “frontrunner, Brunning undoubtedly doesn’t want to get bloodied up any more than he has to in a primary race.  On the other hand, it seems to me that in an era of Tea Parties, when transparency and accountability is something the voters seemingly want, candidates would be better off to embrace more debates, and openness. 

Cain’s Out; Rand’s an Extremist; And More

In the last couple of hours:

• Herman Cain “suspended” his presidential campaign (which, in practice, means that he’s done).
• Sen. Rand Paul has been referred to at National Review as a “libertarian extremist”—the venue and the description both point to just how tough it’s going to be for libertarian-leaning Republicans to gain a foothold in the GOP unless something drastic happens.
• The Nebraska Republican Party took no formal action on this, but a party official was heard to say that, not only is it the party’s responsibility to elect Republicans (I’ll agree with that—when they’re competing with Democrats and other parties’ candidates—it is the job of any party to support their candidates), but that it’s “the Party’s” responsibility to predetermine who the strongest candidates are (in most cases, they will be Republicans), and to endorse candidates—even in the primaries against other Republicans. 
• This is a battle that some of us here in Nebraska have been fighting for several years.  We believe that it is the Party’s role to provide help to its nominees; not to determine who the nominees are.  We have objected on several occasions to both automatic endorsements for Republican incumbents (congressional and state legislature, as well as a few more local offices), as well as a litmus test enacted at the previous State Central Committee meeting which would deny help to any incumbent Republican incumbent legislators—even in a general election against a Democrat—who had failed to support a particular piece of legislation which would return Nebraska’s Electoral College voting to winner-take-all. 
• It appears now that the next move will be for the 100 or so Party overlords to tell half of the voters in Nebraska (roughly 550,000) who should be nominee of the Party.  If smoking weren’t so politically incorrect, one might be tempted to think that we were returning to the days of smoke-filled rooms for choosing our candidates…

GUEST POST: AT& T, T-Mobil Merger Good For Nebraska

By TONY FULTON

[edit: Tony Fulton is a Nebraska State Senator, serving in the Unicameral from the 29th District which covers a portion of Lincoln.  He is also a small businessman. This opinion piece originally appeared in the Lincoln Journal Star several months ago, and is reprinted with Sen. Fulton’s permission.]

News tends to slow this time of year with families embarking on summer plans, schools out and the Nebraska Legislature adjourned.

In this quieter time, state senators are contemplating ways for Nebraska to improve, and I hope to make Nebraskans aware of a business merger that may help our state. I hear from constituents daily, and economic issues rank at the top of their concerns.

In the three years since the economic downturn, our national economy continues to confront significant challenges in keeping and creating new jobs. While other states struggle to tread water, Nebraska stands out as a state that has weathered the recession admirably, and we should, therefore, be astute to developments that position our state for long-term growth.

Wireless and mobile broadband technology is a critical piece to this puzzle. Businesses that have access to the Internet are, by and large, more profitable and better positioned for sustained growth.

Today, access to the Internet is virtually a prerequisite for entrepreneurs, and in the coming decade businesses across the board won't be able to compete in the marketplace without it.

The southernmost portion of my district includes rural areas of Lancaster County, and I am originally from Auburn, a rural community in Southeast Nebraska. I know this is especially true for smaller communities where securing new jobs and businesses can determine the long-term viability of smaller towns.

But, as we all know, wireless and mobile coverage in these areas continues to lag behind other metropolitan areas. As a result, we are facing a long-term competitive disadvantage unless we find ways to bridge this digital divide.

Recently, AT&T and T-Mobile announced plans to merge their companies. As a result of the merger, 55 million more Americans will gain access to 4G technology than would have access under AT&T's current plan.

The merger's outcome is reported to amount to over 300 million Americans with access to this high-standard wireless network. The companies' combined resources and AT&T's commitment to invest another $8 billion in its wireless network will mean increased access to higher-quality options throughout the country, particularly in small towns and rural communities — like those in need in Nebraska. The result will be faster and more reliable wireless Internet.

Wireless broadband availability is a critical issue when it comes to job creation in our smaller, rural communities. Indeed, it is critical on the outskirts of metropolitan areas, too.

It is my own philosophical preference to find solutions to societal problems in the private sector when possible, and this appears to be such a possibility.

The Federal Communications Commission is in the process of weighing all of the regulatory issues and considerations of future market competitiveness. It is my own opinion that the union of these two companies is a common-sense, reasonable step in the right direction that will benefit Nebraskans. In these quieter summer months, Nebraskans may want to be attentive to this possible development.

Here in Nebraska…

…we have the makings for a very interesting Senate race.

A little background is necessary:

• Democrat Ben “Cornhusker Kickback” Nelson, is up for re-election.  The Republicans REALLY want to end his political career.
• Because he is possibly weakened (remember, he was a two term Governor before being elected to the Senate in 2000.  He won his first election against then-Attorney General Don Stenberg (remember that name) by less than a 2 point margin.
• In 2006, he won re-election against then-political newcomer Pete Ricketts (who now serves as Nebraska’s GOP National Committeeman) by over a 12 point margin.  Ricketts, for those Cubs fans amongst our readership, is one of the owners of the Chicago Cubs—his dad founded TD Ameritrade, and the family amassed a tidy sum of money in the process.  Pete has since become a major player in conservative/economic libertarian politics in the state, founding the Platte Institute and helping to fund several other organizations. 

Now, the players this year are interesting, as several are jumping into the water to try and take Nelson out.  Just sort of an aside: Ben Nelson irritated a lot of people in Nebraska with the so-called “Cornhusker Kickback”, but I suspect that in the end (if, indeed, Nelson runs—he hasn’t announced formally yet), that whoever wins the primary race will find it a much higher hill to climb than they now think—Nelson has been around a long time, is a “born and raised” Nebraskan, has won statewide office 4 times (2 as governor, 2 as senator), and is the ONLY Democrat holding office above the legislative level in the state (i.e., the Dems won’t let him fail without a mighty battle).

Right now, there are 5 people in the race (and apparently, some of their supporters have decided to support several of them…):

• Patrick Flynn has been in the race the longest—having filed his paperwork back in late 2009.  He had run for the nomination (but lost) in 2008.  He hasn’t held elective office before, is an investment adviser, and seems to be making some inroads with some elements of the “tea party” crowd here in the state.
• Don Stenberg (remember, I told you to remember that name), is the oldest guy in the race (although not really all that old—early 60s, I think).  He’s been around Nebraska politics forever—he was active in the GOP when I was in high school 35 years ago (guess he must not have been as much older than me as I thought at the time), and served for several terms as Nebraska’s Attorney General   In 2010—after 8 years in the private sector, he ran for State Treasurer, and won, and within a short period after taking office as Treasurer in January, announced that he was running for the Senate (after Governor Heineman announced that he would NOT be running for the Senate).
• Jon Bruning became Attorney General in 2002, after serving for two terms in the Nebraska legislature.  He won re-election un-opposed in both 2006 and 2010, although his fundraising efforts seemed to remain healthy.  He announced for Senate early, as well.
• Last week, Spencer Zimmerman announced that he was running. He’s a young man (I think I saw somewhere that he was 31), and has a long history of running for offices in different parts of the country—including Wisconsin.  He doesn’t have (that I can find) a website besides his Facebook page, and on the surface, it would seem that his primary platform is to create a unicameral national legislature…
• On Tuesday, State Senator Deb Fischer jumped into the race.  She’s from the Valentine, Nebraska area of the state—way out west, where there are more cattle than people; Bruning and Stenberg are from the Lincoln-Omaha corridor (“urban" Nebraska), as is (apparently) Mr. Zimmerman; Pat Flynn is from a mid-size town (by Nebraska standards—small, I suppose, to the rest of the world) in an area of the state that sort of bridges the suburban-rural divide. 

I have no idea how this is going to turn out.  I’m pretty sure that Zimmerman won’t win—he’s too young, and has no history.

Beyond that, the smart money would probably have to be on either Bruning or Stenberg—Bruning has been piling up endorsements (by groups like the Tea Party Express, and from people like Mike Huckabee), but Stenberg has a history that pre-dates Bruning’s political life, and he’s got a real record to show as both a fiscal and social conservative.  Flynn is something of an underdog, although he might have a shot, in a highly competitive 3-way race between Bruning, Stenberg and Fischer.

At least three of these candidates are coming to speak at our Heartland LibertyFest on August 6 (Bruning, Stenberg, Flynn—Fischer has been invited, but hasn’t responded yet).

This will be a nomination race worth watching—although whether it’s a nomination worth winning is yet to be seen.  Never underestimate the political skills of Ben Nelson.

Welcome to Nebraska

Here’s a video that someone shot in the last few days, flying into Omaha’s airport:

The flooding is quite bad, and even if it stops raining tomorrow, it could take some time for flood waters to recede—complicated even more by a late thaw of massive amounts of snow, which is coming our way, from the Rocky Mountains.

The bigger concern, perhaps, is this problem.  Think Fukushima, without the tsunami…although it doesn’t appear that there’s any particular danger at this point—fortunately with flooding of this nature, you’ve got enough time to shut it all down if you need to.

Kind of Close to Home

Fortunately it didn’t go bad, and Triple Hash and Will would have been in more immediate danger than me (guys, we’ll always make room for you and your families here at Casa Ebke), but still, it’s close enough. (Actually, I don’t worry too much about these things—I imagine these things happen with some frequency, and don’t cause—like this incident—much more than a blip on the radar).

Nebraska Senate Race Targeted

Tea Party Express has decided to toss its money into the race for the Republican nomination for a challenger to Sen. Ben “Cornhusker Kickback” Nelson in 2012.  They announced, just in the last hour, that they will be endorsing Nebraska Attorney General Jon Bruning.

In that hour (and in preparation for the announcement), Nebraska grassroots tea party groups  have expressing their displeasure with TPE, via Facebook posts, and (last night) via a press release sent to media and others on behalf of the leadership of at least 15 different Tea Party groups:

TEA PARTY EXPRESS DOES NOT SPEAK FOR NEBRASKA’S TEA PARTY GROUPS..Local Tea Party and Conservative Groups Not Affiliated with Tea Party Express

Tea party and conservative patriot groups are concerned that Tea Party Express’ “surprise” US Senate endorsement, scheduled to be made in Washington, DC tomorrow, will be confused as a sign of support from their own movement within Nebraska.

Over 40 tea party and conservative patriot groups have personally had the opportunity to meet with both Attorney General Bruning and Treasurer Stenberg on several occasions.  Many have also met with candidate Pat Flynn and other potential US Senate candidates who may throw their hat into this race.

At this time, none of the autonomous conservative groups have made endorsements in this race.

“Tea Party Express is a national organization that most certainly does not speak for local conservative groups throughout our state.  Making an endorsement this early in this race without the input of Nebraska’s tea party and conservative groups is disappointing,” said Joanne Elliott, co-organizer for Conservative Connections in Lincoln.

“We have important work ahead of us in Nebraska which doesn’t include focusing efforts and finances on a primary election that is more than a year away,” said Greg Vaderneck, Chairman of the York County Tea Party. “You can count on this: We won’t be supporting #60 who embarrassed all Nebraskans with the Cornhusker Kickback.”

Ron Hasley, Organizer for the Citizens Action Group in Beatrice added “Nebraska tea party and conservative patriot groups are focused on grassroots communications with our state officials—not on endorsements.  The projects we’ve been focused on range from fighting any state proposed tax increases, working diligently with our Nebraska federal officials to stop ObamaCare and the promotion of meaningful CIR reform that brings control back to our local elected officials.”

Jim Mason, State Director with Tea Party Patriots Nebraska, said “The endorsement of a US Senate Candidate from Tea Party Express is coming from outside Nebraska.  In fact, Tea Party Express isn’t even coming to Nebraska to announce their big ‘surprise’ endorsement.  We certainly don’t want our fellow Nebraskans confusing the views of Tea Party Express with the tea party folks here in Nebraska.”

Tea party and conservative groups throughout Nebraska are unsure as to which of the Nebraska US Senate candidates will be endorsed by Tea Party Express.

# # #

Of course now they know who is being endorsed. 

This race will be an interesting one.  Bruning and Stenberg both have some conservative credentials—Bruning is younger by about 20 years than Stenberg.  Stenberg used to be Attorney General, has run for Senate on several occasions, and if my observations are accurate, seems to be sort of the “personal favorite” of some of the tea party leaders in the state.  Likewise, Pat Flynn (the other announced candidate) made a run for the Senate nomination in 2008, but otherwise, has limited political experience, but strikes a tea party-like chord at times. 

Tea Party Express tossed some money into Scott Brown’s Senate election.  For those who are politically aware, Brown has been something of a disappointment for the tea party crowd.  It’s endorsement in the Nebraska race could be a mixed bag for Bruning: good for the money it brings in, but potentially bad as people look at who is behind it, and what their record is.

LLE