Quote of the Week XXIV

Obama gets it part right
I actually agree with aspects of his broad diagnosis of the Wall Street problem:

Wall Street is not going to play as dominant a role in the economy as regulations reduce "some of the massive leveraging and the massive risk-taking that had become so common," President Barack Obama says. The changes in the role of Wall Street and the huge profits that came from that risk-taking could mean other adjustments as well, Obama said in an interview in this week's New York Times Magazine.

"That means that more talent, more resources will be going to other sectors of the economy," he said. "I actually think that's healthy. We don't want every single college grad with mathematical aptitude to become a derivatives trader. We want some of them to go into engineering, and we want some of them to be going into computer design.... I think it's important to understand that some of that wealth was illusory in the first place," he said."

Where Obama goes awry is that his plan is to attack the symptoms and not the disease. So long as the paper money system exists, the easiest and fastest way to obtain more of it is to play paper games. And some of the policies he is contemplating are certifiably insane, such as his plan to attack tax havens and overseas profits. As the British are learning, all that does is cause your best entrepreneurs to leave the country entirely. Preventing companies from writing off domestic expenses for overseas profits isn't going to reduce the incentive for U.S. companies to base part of their operations in other countries, it's going to increase their incentive to move ALL of their operations elsewhere.

It's also amusing how the US media inevitably mentions places like the Cayman Islands in articles like these, when the real problem is that in comparison with US corporate rates, about half the world, including many European countries, look like tax havens.(Vox Day)

"We Don't Have Time For This!"... Or Do We?

It seems that the new American President has made one or two decisions already that have been both noticed and welcomed in the international press. In an article from "Le Devoir":

Finies la torture et les prisons secrètes

Claude Lévesque

Barack Obama a ordonné hier la fermeture de la prison de Guantánamo d'ici un an ainsi que le gel de toutes les procédures devant les tribunaux d'exception qui y siègent, de même que la fermeture, «le plus tôt possible», des geôles secrètes de la CIA et l'interdiction des formes d'interrogatoires, largement qualifiées de torture, qui ont été pratiquées par les États-Unis depuis le 11-Septembre 2001.

And then from The Times:

Philippe Naughton

Barack Obama has wasted no time in getting down to the business of government, asking prosecutors to halt controversial military trials at Guantanamo Bay within hours of his inauguration.

The request was issued via the Department of Defence even as President Obama and his wife Michelle waltzed their way through a series of glitzy inaugural balls.

Mr Obama pledged during his campaign to close the prison camp on Cuba set up in 2001 to hold detainees from the 'War on Terror'. The camp's legality has always been questioned, and former inmates and human rights experts said the harsh interrogation techniques deployed inside it amounted to torture.

Last night's request was for a 120-day stay in the trials of five alleged 9/11 plotters - including the self-proclaimed 'mastermind' behind America's worst terror attack - and of a Canadian accused of killing a US soldier in Afghanistan. Mr Obama had been expected to issue an executive order as early as today for the full closure of the camp, but accepts that it might take months to rehouse some 250 inmates still held there.

And then from Le Monde we have an expansion of the theme.

Guantanamo a marqué les années Bush. Bagram ternira-t-il l'ère Obama ? Situé au nord-est de Kaboul, le plus important centre de détention américain d'Afghanistan compte près de 630 prisonniers capturés par les forces de la coalition. Afghans pour la plupart, tous ne sont pas des "combattants ennemis", mais, à en croire les rapports du Comité international de la Croix-Rouge (CICR), leur sort n'a rien à envier à celui des détenus de Guantanamo.

The international press is on to something here. The question is: How far is President Obama willing to go on this?