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THE HUMILIATION OF JOHN KERRY

The secretary of state was back in Washington a few days ago (5/09), begging the Senate Foreign Relations Committee to take it easy on the poor Iranians.  Enough with the sanctions, he said.  Secretary Kerry has joined decades of his predecessors, buying  into the latest version of the 30-year old illusion that we can make a deal with the Tehran regime if only we deal properly and humbly with them.  He said there was a "window of opportunity" for a couple of months.  It doesn't much matter if he really believes this legend, or is following instructions from President Obama, who is still pursuing this unholy grail despite five years of swift kicks in his behind.  The one he so loves to lead with.  Either way, it's an embarrassment. But then, our new secretary of state has great flair for embarrassing us.  In Obama's community of narcissists, Kerry is a bit different.  He excels at self-humiliation, as he showed in his recent sortie to Moscow, where Czar Putin kept him waiting for many hours before sparing some time to "discuss" Syria and related topics, no doubt including Iran. 

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THE ROAD AHEAD FOR A BENGHAZI COMMITTEE

Thanks to the testimony of whistleblowers last week, and subsequent reporting of how "talking points" were systematically scrubbed of every reference to the truth, we know for sure President Barack Hussein Obama and senior aides were lying when they blamed a Youtube video for the attack on our consulate in Benghazi. More important is what is being covered up.  To get to the bottom of what may be more a looming national security crisis than a scandal in the past, we must have answers to a large number of critical questions.  The way to get them is for the House of Representatives to form a Select Committee, armed with subpoena power, to investigate what was going on before and during the attack on 9/11/2012, and what's been happening since. Here's how to form it, who should be on it, and what its members should focus on.  Hint: not impeachment.  There are very good reasons why - at least not before the mid-term elections in November 2014.

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IMMIGRATION AND PRODUCTIVITY

[Note from JW:  Dr. Rahn here presents an economic discussion of immigration - after all, he is an economist.  It is not a discussion of the national security threat of immigration, specifically that of illegal immigration from Mexico. A lively discussion of Dr. Rahn's arguments is expected on the TTP Forum!] How many new immigrants should the United States allow each year? How many guest workers? These are not easy questions, which is why there is as much fierce debate within the two parties as between them. The two main reasons given for restricting current immigration are the myths that immigrants take away American jobs and that immigrants are more likely to go on welfare, thus putting an additional burden on the taxpayers. Rather than taking away American jobs, good economists understand that immigrants who work create wealth in America, which in turn creates more and higher paying jobs for everyone. To explain the economics of this adequately would take more space than this entire commentary, but the truth of the assertion can be seen in the fact that high-wage countries with many immigrants such as Switzerland, Australia and Canada tend to have much higher labor force participation rates and lower unemployment rates than low-wage countries.

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HALF-FULL REPORT 05/10/13

Good grief - let's see if I still remember how to do this.  I can't believe the last HFR I wrote was  February 22.  I've been gone that long.  Then again, there's an Agence France Presse story this week (5/09) about scientists revealing that "Adventure Shapes the Individual." The more exploratory you are, the more new neurons grow in your brain - even in adulthood, a process called adult neurogenesis - particularly in a structure of the brain called the hippocampus, responsible for learning and memory.  AFP made a news story out of the research report appearing in today's (5/10) issue of Science, the world's premier journal of peer-reviewed science. Nonetheless, I learned about the connection between adventure and hippocampal neurogenesis a long time ago from Skye.  So let's hope all the exploration I've been doing in the South Atlantic worked, as I have to get up to speed fast.  First, though, I want to thank Jack Kelly so very much for his marvelous HFRs while I've been gone.  I'm going to have a tough time now doing as well. Let's cut to the chase and explain the week's main event...

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BENGHAZI AND WATERGATE

How different history might have been if the news media then were as blasé about Watergate as they've been about Benghazi, if Republicans then were as disinterested in truth as Democrats are now. If Watergate had not brought Richard Nixon low, the "emerging Republican majority" Kevin Phillips predicted in his 1969 book might well have.  Democrats wouldn't have won the lopsided majorities in the 1974 congressional elections that led to the vast expansion of domestic spending that now threatens to bankrupt the country. President Nixon, if unweakened by scandal, wouldn't have abandoned South Vietnam when the North Vietnamese invaded. The Watergate burglars were caught while removing a bug on the phone of a Democratic National Committee official they believed supplied prostitutes for visiting Democrat big shots.  President Nixon and his senior aides were furious when they found out. They were undone by their attempt to cover up a crime in which they were not involved.  A crime in which no one died, like those in Benghazi.

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A HISTORY OF THE THREAT OF CHECHNYA

Some three years ago, as a retired Texas State Trooper, I taught a high school Criminal Justice class entitled "Crime in America."  This course covered the types and trends of crime in our nation, and illustrated what someone working in our criminal justice system would most likely encounter in a future career. In this course I also identified future trends in crime, including terrorism and mass killings.  Examples of the Chechen experience were utilized to explain how monstrous this could be, and was chosen due to the high likelihood of it coming to our nation.  On April 15th, 2013, that calculation was proven true in Boston.  Authorities have learned those involved in this hideous act originated from Chechnya, in the Northern Caucasus region of Russia, which serves as a fertile breeding ground for violent Islamic extremist groups.  What follows is a brief history that may illuminate the horrifically bloody nature of Moslem Chechen violence -- which has now been perpetrated on us.

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IS BITCOIN A BUBBLE?

Seems like everyone these days is talking about Bitcoins and their implications for private money. Bitcoins - a form of digital private money - shot up in value from $90 to $260 each after Cypriot bank accounts were raided by the State, then plunged last month before recovering some of their value. These gyrations are symptoms of a bubble. Just as with tulip bulbs or dotcom shares, there will probably be a bursting. All markets in assets that can be hoarded and resold - as opposed to those in goods for consumption - suffer from bubbles. Money is no different; and a new currency is rather like a new tulip breed. Yet it would be a mistake to write off Bitcoins as just another bubble. People are clearly keen on new forms of money safe from the confiscation and inflation that looks increasingly inevitable as governments try to escape their debts. Bitcoins pose a fundamental question: will some form of private money replace the kind minted and printed by governments? It has happened before.

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IS THE CURTAIN COMING DOWN ON CHINA?

Anti-reform hardliners in China's Communist Party have become seriously alarmed by the sharp slow-down in economic growth, creating a "task-force" to crank up production. China's Caixin Magazine reports that there is a growing "sense of crisis" not felt since the depths of the global banking crash in 2008-2009. The State Assets Supervision and Administration Commission (SASAC) has assembled a team to "protect economic growth" and pressure state companies to boost jobs at all costs. SASAC is the bastion of vested interests and controller of 115 state behemoths with assets above $6 trillion and a lock on much of the economy. The move comes amid further signs that growth is faltering across all fronts. HSBC's gauge of Chinese services fell three points to 51.1 in April, the lowest in almost two years.

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ISRAEL WAS REALLY ATTACKING IRAN AND RUSSIA, NOT SYRIA

As information about the apparent Israeli strikes on targets inside Syria continues to pour in, it's easy to lose sight of the central fact: the two reported Israeli attacks are part of an ongoing war, the big war against the West. While the attacks were in Syria, the mission was primarily a major strike against Iran and Russia, two key components of the global alliance arrayed against us. Both are desperately trying to shore up the Assad regime in Damascus. The fall of Assad would be a devastating blow to Supreme Leader Ali Khamanei's tyranny in Tehran, would gravely weaken Russia's strategic position in the Mediterranean and the Middle East, and would threaten the strength (and even the survival) of Hezbollah, the world's most dangerous terrorist organization and the creation of Iran's founding tyrant, the Ayatollah Ruhollah Khomeini. The attacks apparently did great damage to Iranian missiles, and the vaunted Russian antiaircraft system provided to both Syria and Iran was unable to do anything to prevent them. Both have been humiliated.

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WHY OBAMA IS LIKE A BARTENDER ENCOURAGING YOU TO DRINK MORE

There is considerable evidence that drinking one glass of red wine per day for most middle-aged men has more health benefits than costs. There is also considerable evidence that drinking three or more glasses of wine per day causes more health problems than benefits. Even so, the owner of your favorite winery might encourage you to drink at least three glasses a day, perhaps with the following argument: "If you and my other customers drink three times as much, it will enable me to hire more workers, thus increasing employment." What the winery owner conveniently ignores is the damage the additional drinking causes to both your health and your pocketbook, and the fact that if you spend less on wine, you probably will be spending more on other goods and services, thus increasing employment in those areas. Many of the economic arguments I hear from the political class -- including members of Congress and President Obama -- are equally fallacious. It is tiresome to hear the president (as he did again last week during his news conference) and others say, time and time again that if we just tax and spend a bit more, our problems will diminish.

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