Month: June 2008

US NATO Rep Boosts Russian Membership in Alliance

This proposal is actually good policy, as Russia continues to see, with no small justification, NATO as a military institution directed against it.

That being said, she doesn’t really mean it:

“Speaking as a mom and as a strategist and a lifetime student and friend of the Russian people, I would love to live in a world where Russia wanted to be a NATO member and Russia had met the very high standards that NATO sets for openness, democracy, reform, rule of law that new NATO members must meet,” Victoria Nuland said in an interview with RIA Novosti and the Argumenty i Fakty weekly.

What she’s saying is that she wants Russia to be more like western nations, and then she would consider it.

When one considers the fact that at least two NATO nations, Greece and Turkey, spent much of their time in the cold war under military rule from a Junta, I would think that Russia has already met that standard.

Seriously though, Russian membership in NATO would go a long way towards easing relations.

As I’ve said before, the eastern expansion of NATO following the collapse of the Berlin wall was a bad idea, and this is one of the few ways to undue the damage done.

As to why the original NATO members enthusiastically expanded eastward, I think that it was two things, uncritical euphoria at the fall of the Warsaw Pact, and the desire for arms sales in the newly liberated countries.

Supreme Court Reaffirms Patent Exhaustion

The case is LG Electronics vs Quanta, where LG licensed the technology to Intel, who made the chips used, but wanted to charge buyers of the chips an additional royalty.

Basically, patent exhaustion says that if someone licenses a patent from you, and they sell stuff made with that patent to someone else, the recipient can use that stuff without any more restrictions. It’s a 100 year old precident, but the patent court decided to ignore it.

You can find a very good primer on why this happened here.

The district court ruled for Quanta, but the patent court ruled for LG on appeal, and the Supreme Court completely reversed the patent court, which is becoming a regular thing.

The special patent court is out of control and needs to be abolished.

Do Not Send Money to These Bush Blue Dogs

One of the things Tim Mahoney and Allen Boyd, both of Florida, won’t do is endorse Barack Obama for president.

These are both folks who have received lots of support from the Democratic grass roots, Mahoney is in Mark “Just as soon as I get to the end of the page” Foley’s old seat following the sex scandal, and when the time comes for them to do little things, like endorse the Democrat, or in Mahoney’s case, criticize John McCain for opposing Mahoney’s own insurance relief bill, they just don’t have the guts.

Screw them.

Lobbyists Complaining About Obama Donation Ban

Good. It means that he’s done something right.

So are some Congressman, or at least that’s what the lobbyists say in the article.

Seriously though, is there any reason for Steny Hoyer to have, “received a higher percentage of his campaign contributions from PACs this cycle than has any other member of Congress?” He’s in a completely safe district. He could win if he spent 50 bucks on his hole campaign.

Two snaps up from me.

Gates Bitch Slaps Fighter Mafia

Since 1984, the Air force chiefs have staff have all been former fighter pilots. Before that, they were all bomber pilots.

With the appointment of General Norton Schwartz, who flew C-130s and AC-130s, it’s clear that Robert Gates is slapping down the so called “fighter mafia” hard.

What’s more, Vice Chief is now General William Fraser III, a former bomber pilot, which is another slap at the fighter jock leadership culture.

Maybe now, we can start seeing the Air Force do something useful at the upper leadership.

Bush Fired Rove In Church

Boy, the Avignon president is a really classy guy:

If you’re going to fire someone, you want to make sure you do it in a place where the now-unemployed can’t make a scene.

You know…a place like, say, a church.

That, according to a new book – “Machiavelli’s Shadow” – by former Time magazine reporter Paul Alexander, is where President George W. Bush informed trusted advisor Karl Rove in 2007 that his services would no longer be needed at the White House.

“On a Sunday in midsummer, George W. Bush accompanied Karl Rove to the Episcopalian Church Rove sometimes attended,” writes Alexander. “They made their way to the front of the congregation. Then, during their time in the church, Bush gave Rove some stunning news. ‘Karl,’ Bush said, ‘there’s too much heat on you. It’s time for you to go.’”

It appears that Rove is a screamer, and Bush was afraid that he would be shouted at.

But according to the Republican party, Bush is really brave for sending soldiers to die in Iraq.

Pathetic.

Boy…Firing a man in church because you were afraid he would be angry with you? Bush is one classy dude.

Economics Update

China, in response to inflationary pressures, and the fact that a number of their banks are insolvent by western standards, just hiked their reserve requirements, meaning that they have to keep more in reserve, and lend less out of their deposits, which, not surprisingly has tanked Asian markets.

Given that the US trade deficit widened under the pressure of rising oil prices, there may be another purpose: to slow things down before US demand drops off a cliff, particularly when Ben Bernanke is signaling rate hike strongly.

In any case, oil fell a bit, but gasoline is still hitting new records, which implies that a lot of money is still going to petro-economies.

It looks like the British Bankers Association may be taking steps to fix the problems with LIBOR reporting, where this critical rate looks increasingly to have been gamed by member banks, by tightening scrutiny on the transactions, though they are still whining about how it will hurt, “What we do here in the U.K. must match others … maintaining competitiveness is essential to the U.K. industry.”

If you crank out phony numbers, it will hurt your bank more than any other thing that you can do.

Meanwhile, back in the good old USA, Q1 delinquencies rose 62% over a year ago.