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Dew in Dallas

Scotland, that is. Also known as “Little D”  Back during the 1970s, North Sea oil boom, Dallas (Texas) Morning News columnist and chili guru Frank X. Tolbert visited the little village in the far reaches of northern Scotland.  I recently can across this photo (which was published in D&W half-tone in the newspaper then).  Frank noted, among other things, the local distillery produces a Scot’s Whisky known as “Dew of Dallas” which he sampled with approval.

Located at 57 33’N 3 28′ W

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Fat of the Land; Salt of the Earth

In my continuing effort to demonstrate that the main problem with our economy is government regulation, I offer George Will’s column last week in the Washington Post. Will offers the 70 year experience of the founder of Carl’s Jr, fast food restaurants, and his successors.

“In 1941, Carl Karcher was a 24-year-old truck driver for a bakery. Impressed by the large numbers of buns he was delivering, he scrounged up $326 to buy a hot dog cart across from a Goodyear plant. And the war came.

“So did millions of defense industry workers and their cars. And, soon, Southern California’s contribution to American cuisine — fast food. Including, eventually, hundreds of Carl’s Jr. restaurants. Karcher died in 2008, but his legacy, CKE Restaurants, survives”.

Sort of. While CKE is still making hamburgers, hot dogs, or whatever (I’ve never eaten at one), it appears to be still in business, selling lots of food, and coincidentally, employing workers at 3,200 restaurants. Now I know that there are those who scorn the “hamburger flipper” industry is being déclassé at best, but it is in fact an industry that employs a lot of entry-level workers particularly teenagers looking for part-time job, as well as those who may be marginally employable elsewhere. It can certainly be a way station for those unemployed in “their field” while they are looking elsewhere. Aside: I have tried very hard to avoid referring to those who deride certain industries and jobs as “underemployment”, as idiots, but I can no longer help myself. They are.

One of CKE’s current problems which will cause it to at least downsize is Obamacare.

“Obamacare’s complexities, opacities and uncertainties,” CKE says “would add between $7.3 million and $35.1 million to the company’s $12 million health-care costs in the next year.” It appears hard to say where in that spread the costs might land. Earlier this year, when In discussing the future of medical costs in a public forum sponsored by the National Center for Policy Analysis, Parkland Hospital and Health Systems CEO Dr. Ron Anderson, said that the scariest words in the Obamacare act are “the Secretary [of the Department of Health and Human Services] shall” leaving open an incredible amount of power in the rule making process. Who knows what the current Secretary Kathleen Sibelius, who has no aversion to making regulations, or one of her successors, might prescribe. Whatever those regulations may require, we can be certain that they will be so incredibly detailed, arcane, and obscure that it will be impossible for anyone to be in compliance at any given time. (See my essay on the difficulty budding child entrepreneurs have in purveying lemonade published last Saturday 12/3/11.)  There is more.

“Rising health-care costs are, [CKE’s Andy Puzder] says, just one uncertainty inhibiting expansion. Others are government policies raising fuel costs, which infect everything from air conditioning to the cost (including deliveries) of supplies, and the threat that the National Labor Relations Board will use regulations to impose something like ‘card check’ in place of secret-ballot unionization elections.” The prospect of unionized fast food employees sort of boggles the mind, but maybe that’s all part of our nannies’ plan to read us of the plague of burgers and fries.

Chicago Tribune columnist Steve Chapman tends to corroborate that last notion. It his recent column http://www.chicagotribune.com/news/columnists/ct-oped-1201-chapman-20111201,0,419567  he writes of the government’s Institute of Medicine urging the FDA to “gradually step down the maximum amount of salt that can be added to foods, beverages and meals.” war on salt. Chapman quotes Dr. Walter Willett, chairman of the nutrition department at the Harvard School of Public Health, who says that “we must treat sodium reduction as a critical public health priority.”

Is it? We have been hearing about the ill-effects of too much salt for decades. Almost every proponent of a healthy diet includes limitation on sodium intake in their advice. It has become an article of faith among nutritionists and dietitians, and even, it appears most physicians.

According to an article in the July 2011 issue of Scientific American, a respected periodicals dealing with science issues and developments (it has been in publication for over 166 years), researchers “reported that the less sodium that study subjects excreted in their urine—an excellent measure of prior consumption—the greater their risk was of dying from heart disease. These findings call into question the common wisdom that excess salt is bad for you, but the evidence linking salt to heart disease has always been tenuous.” See “It’s Time to End the War on Salt”  This article also cited additional studies that compared sodium intake with blood pressure in subjects from 52 international research centers and found no relationship between sodium intake and the prevalence of hypertension. In fact, the population that ate the most salt, about 14 grams a day, had a lower median blood pressure than the population that ate the least, about 7.2 grams a day.

It seems that Mr. Chapman has a point. But even if the average consumption of salt by Americans might be harmful to their health, he asks what business is it of our federal government. Federal regulators have no grounds to dictate how much our food may contain, Chapman asserts. Any consumers who want less sodium are free to spurn restaurant meals and grocery items laden with heavy doses. Food companies don’t use salt because they like it but because their customers do.

Exactly.

Raising the hue and cry against salt, even if too much of it is a bad thing, reduction in intake by trying to make a public health crisis out of it is counterproductive to such a goal. Chapman maintains that it “mutilates a useful concept. Air pollution West Nile virus and E. coli are matters of public health because they inflict harm on broad groups of people against their will and often without their knowledge.” No one eats too much sodium other than by choice.

Leave it to the nannies, nags, and busybodies. A brave new world may be upon us.

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Can’t make lemonade out of these lemons

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Philip K. Howard, lawyer and author, known for his books Death of Common Sense and The Lost Art of Drawing the Line, today published an interesting essay on his website the Common Good (and also in this Saturday’s Wall Street Journal in somewhat shorter form) about the over-regulation of our lives and businesses in the present world. This writing began with the news that county officials in Bethesda, Maryland last summer had shut down a children’s lemonade stand because the children failed to procure a license. Now, if there is anything that is the quintessential image budding entrepreneurship, it is the kid setting up a lemonade stand on the curb. That being so, Montgomery County soon backed down after their idiocy garnered national attention, but Howard points our that it is symptomatic of the bureaucratic mentality that bestsets our country in this brave new world. 
Howard’s writing is published on the same day of Associated Press reports that the House of Representatives passed a bill whose purpose is to reduce the number of federal regulations, and that the U.S. Labor Department has proposed new regulations restricting the work that children may perform on farms. The Democrat controlled Senate will probably reject the bill, and the President has threatened to veto it. The farm labor regulations will probably be implemented.
Considering Howard’s essay and the contemporaneous news stories, is it really a surprise that manufacturers of goods and providers of services are moving their facilities to China and elsewhere?
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Snake Skins

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The American Airlines bankruptcy filing strikes close to home for me because several family members are employees of AMR, and my family was affected by a bankruptcy filing by the late, lamented Braniff International nearly 30 years ago.
American Airlines is the last of the so-called legacy airlines to file a bankruptcy. Other than Braniff, those airlines survived in some form as a result of merger and reorganization, and several actually became much stronger and sounder financially.
One thing that strikes many of us as odd, is that presently American has around $4 billion in cash, and has been paying its debts as they become due. Why, then, bankruptcy?
There was a time when bankruptcy was synonymous with failure. Indeed, having a bankrupt in the family was considered a disgrace, and something that was not talked about in public, or even to close friends. One of the reasons that bankruptcy caused Braniff’s ultimate demise was that, unlike the later airline filings, it ceased operations upon filing and attempted to reorganize without any meaningful revenue stream. But at the time Braniff believed that it had no choice, because no one would fly a bankrupt airline because of the perception that it was a failure, and could not provide the transportation service safely. Whether that was true at the time is speculation, but the way that the reorganization scheme and process under Chapter 11 of the bankruptcy code has evolved, the day-to-day operations of most businesses can remain unaffected. This is not true in every case, of course. Witness the Enron debacle of a decade ago. Bankruptcy nevertheless has become just another business strategy to use when financial adversity occurs.

Since I appear in the bankruptcy courts on behalf of creditors (and only creditors – too many possibilities for conflicts of interest in trying to represent clients from both sides), I have a pretty good insight about how this works. Bankruptcy used to mean that a debtor cannot pay his bills so the court would take over his property, liquidate it, and divide up the proceeds amongst the creditors in proportion to the debts owed. The debtor would then be put out on the street with the clothes on his back, if that. Most bankruptcies were involuntary on the part of the debtor. Today, there are still involuntary as well as voluntary liquidation provisions, but the most common types of bankruptcies are either the voluntary Chapter 11 reorganizations, primarily used by ongoing businesses that get into financial difficulty, or Chapter 13, use only by individuals who propose to pay back a portion of the debts they owe according to a plan which meets certain criteria.

The Chapter 11 reorganizations do not necessarily require that the bankrupt entity be insolvent. As matter of fact, that is not often the case. The purpose is to try to save a potentially viable business by giving it temporary relief from the claims of creditors in order to readjust its affairs and pay its debts in an equitable manner (“equitable” here meaning a reduced amount paid pro rata according to the amount each creditors owed).
One of the salient features of the Bankruptcy Code (Title 11 of the United States Code, for those who are interested) is that it allows debtors, or appointed trustees who take charge of the bankruptcy estate, to accept or reject contracts and leases. This allows corporate debtors to get out of onerous financial relationships which no longer make economic sense, without the usual consequences of breach of contract. Labor union contracts are often, and in American Airlines’ case, probably the targets of and reasons for a bankruptcy filing in the first place. The United States Constitution prohibits states from impairing the obligations of contracts, but gives Congress the power to enact uniform bankruptcy laws throughout the Union, which inherently impair contract obligations, as well as property rights (although with regard to property, Congress is restricted somewhat by the due process clause of the Fifth Amendment).
Quite a few sections of the U.S. Bankruptcy Code can be doubtless tied to special interest lobbyists. Regarding complex Chapter 11 cases, the concept that some business entities are “too big to fail” seems to rule. One bankruptcy specialist likened a Chapter 11 filing as akin to a snake shedding its skin – an apt metaphor in many cases. Many economists believe that the economy as a whole benefits from the existence and application of bankruptcy as it has evolved. Creditors, employees, and stockholders (or other equity interest holders) are the ones that take the hit when a large firm goes bankrupt. Usually, secured creditors at least get the value of their collateral, although quite often not without some effort. Thus, those who really benefit from bankruptcy are the lawyers, on both sides.
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Modified Justice

For the past several decades our sensibilities have been assaulted with cries of numerous kinds of “justice” mostly, but not entirely, from the left wing.  We have heard “economic justice”, “racial justice”, “gender justice” (which I would suppose refers to grammatical constructions), and, the ubiquitous “social justice.”  Now at the United Nations meeting in Durban, South Africa, there are demonstrations for “climate justice.”  I have never seen, or found a way to use, any of those terms in a coherent sentence without enclosing them in quotes, as above. Anytime one uses an adjective — a modifier — the word is limited in some manner.  Either justice is just for all involved in the event or transaction, or it does not exist at all.  All of these modified forms of “justice” ultimately involve favoring members of one artificial group over one or more members of another, and disregard “individual justice”, which is also invalid because it is redundant, unlike the oxymoronic others.

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Poop Prospecting

It was brought to my attention that BLT Steak at 1625 I Street NW, in Washington, D.C. has recently offered a choice of 99% burger or 1% burger. The former is a 6 oz. cheeseburger with, of course, American cheese on whole grain bread for $9.99, while the latter is a 8 oz. Kobe burger, braised Kobe short rib, with foie gras, gold leaf, and Grey Poupon for $58. BLT, reportedly a favorite of K Street lobbyists, offers other politically themed burgers described at this link.

I am definitely for the 99%er – no poop for me, either grey or gold, but the inclusion of the $1700/oz. garnish on the 1%er, makes me wonder if the next prospecting opportunity lies at the D.C. sewage treatment plant.

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96 50′ 9.85" W; 32 50′ 42.22"N

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Jonathan Massey, the principal architect for Corgan Associates on the current reconfiguration of the Love Field terminal here in Dallas, last summer first heard the question of the location of the Boeing 707, N26000, which served as Air Force One when Lyndon B. Johnson was sworn-in as President on the day President Kennedy was assassinated. According to a story today in the Dallas Morning News, the spot had never been marked and was long forgotten.

Massey, attentive to detail like only an architect can be, apparently went on a personal crusade to discover not only the exact location of the airplane, but that of President Johnson when he took the oath. From photographs, diagrams and floor-plans, and other documents long gathering dust in archives and museums, including our own Sixth Floor, he finally determined, within inches, where LBJ actually stood. It is 96 50′ 9.85″ W longitude; 32 50′ 42.22″N latitude. This has to give a new meaning to precision, or maybe obsessive compulsiveness.

Speaking of compulsiveness, can I add my own? David Flick, the staff writer who authored the new item reports that only four other presidents have taken the oath of office outside of Washington (George Washington, Chester Arthur, Theodore Roosevelt and Calvin Coolidge). I believe it is actually five. John Adams was inaugurated in Philadelphia, which was serving as the national capital while Washington, D.C. was still being built – and it wasn’t named “Washington” at the time.

May I add one more observation. Four Presidents have been assassinated while in office, and there have been fourteen known attempts (which include, as of recent, President Obama) of varying degrees of competence. Only Lincoln’s murder, the attempt on Truman, and, possibly, McKinley’s assassination were organized political conspiracies. The others, despite the efforts of those with various agendas, have not proven to have been anything other than the work of obsessive compulsive nut cases. I emphatically include Lee Harvey Oswald’s terribly unfortunate success.

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The obvious dance partner

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Ever since Hunter S. Thompson died six years ago, few writers have had the ability to turn a phase, particularly in making a well timed insult, as Ann Coulter. She is certainly the master of the written put-down, and I would have to say that Coulter comes close to Dennis Miller in the oral. Her bomb-throwing reputation resulted in a caution from Canadian officials that she might run afoul of Canada’s” hate speech” laws. Hate, in that country, I suppose, can be defined as rhetoric that can be “uninhibited, robust, and wide-open” (Justice Brennan’s words). But not here, yet anyway. Ms. Coulter is an unabashed conservative, though not always sympathetic with libertarian beliefs, hence, my occasional disagreement with her positions. I also think she preaches reassurance to her own converts a bit too much. But Ann frequently makes apt observations, and in her 11/16/2011 column (link) she makes some that are particularly timely. This one boils down to all but one of the Republican candidates playing the “I’m more conservative than the next guy” game and self destructing in the process. The one, of course is former Massachusetts governor Mitt Romney.
Everyone knows the nominee is going to be Romney, Coulter says. She goes on to opine “that’s not so bad if you think the most important issues in this election are defeating Obama and repealing Obamacare. Which they are. Weekly Standard contributor Jeffrey Anderson makes a convincing case for that in the current issue essay “It’s the Obamacare, Stupid.” Anderson point’s out that the overall economy and unemployment can be laid as much at the feet of Congress, the House now controlled by Republicans, as the at those of the President. But the reason the Republicans now have a solid majority there and effective veto on the Senate’s advice and consent process is Obamacare. “Republicans didn’t get elected in 2010 because of voters’ dissatisfaction with the Democrats’ handling of the economy. They got elected because the Democrats openly and arrogantly ignored the voters’ will in passing the monstrosity that is Obamacare—and because Republicans stood firmly, resolutely, unflinchingly for Obamacare’s repeal.” Anderson goes on to cite the evidence as to why those Democrats in less than solid districts lost. Anderson’s essay is here.
Coulter argues that there may be better ways to stop Obamacare than Romney, but, unfortunately, they’re not available right now.
With conservatives, Romney’s negatives are his Mormon religion and Massachusetts’s “Romneycare” which many regard as the blueprint for Obamacare. With liberals, his negatives are his Mormon religion, and – well he’s a Republican and is for limited government, and most other ideas fiscal conservatives believe in.
If we were living before the 1960s, Romney’s support of the Massachusetts medical insurance law and why it is not inconsistent to oppose a similar federal program would be easy to explain to most voters. It’s called federalism, stupid. Schools have ill taught history and civics for the past half-century, and, as a result, few adults other than lawyers and political scientists have any idea what that means. The responsibility for governing this nation is supposed to be divided between the states and the federal government. The powers of both are limited by the Constitution. Without going into a dissertation on the division of federal-state power, issues involving health, safety, education, and morals, have been generally recognized as state functions. Historically, the national government is responsible for foreign relations, common defense, establishing a monetary system, regulating interstate commerce, and ensuring that states equal protection of the laws for all persons similarly situated. The last century saw an expansion of power in the national government. There are many reasons for this, too involved to go into here. The bottom line is that medical services delivery and funding is a state government function. Massachusetts can do it one way; Texas can do it differently. Romney can advocate a program for the state of which he is governor. He can legitimately say it is not a federal function when he is President. That is not “flip-flopping” – it is principled federalism.
Romney’s membership in the Church of Jesus Christ of Latter Day Saints draws fire from both ends of the spectrum. Conservatives fret about the church’s past sanction of polygamous practices, and the LDS belief system in general. Liberals do not like the church’s condemnation of homosexuality and its past racism which regarded black people as descendants and consequent soul-mates of Cain (Abel’s brother, not Herman).
These are all non-issues, at least they should be for the right. Romney’s religious persuasion should not, and probably will not, keep conservatives from voting for him. Certainly that is true, if they are convinced abstention would be a vote for Obama (obviously, no conservative would vote for Obama against anyone to the right of Fidel Castro, assuming the Cuban dictator is still alive at election time next year). Especially if Romney makes it clear that his Mormon faith will not cause him, as President, to side with the left on any moral issue. Many may believe that Mitt is a liberal in disguise. He’s not. I believe he is business-friendly (but not a crony capitalist) center-right realist who will dance with those who bring him, those of like persuasion – the independent voters.
So far, he seems to be playing the hedgehog defense and hunkering down. Just enough exposure so no one forgets him; not saying anything that could be embarrassing – now or later. That is good strategy, and it has the plus of indicating the good judgment that makes him Presidential material.

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Wanted: New Dancing Partner

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Democratic Party stalwarts Patrick Caddell and Douglas Schoen, in an op-ed piece in today’s Wall Street Journal, call for President Obama to step down in favor of Hillary Clinton next year. The Carter and Clinton pollsters and advisors cited the example of Presidents Harry Truman and Lyndon Johnson, who both concluded that winning another term could only done at the cost of dividing the nation so deeply that it would be ungovernable. Whether that was those former Presidents’ main motivation is perhaps conjecture, but there is no doubt that Mr. Obama has succeeded in making the principal issue for next year’s campaign whether he or President Bush (and Bush’s party) is the most responsible for an economic mess. He did this by violating a cardinal rule of ordinary etiquette: You dance with the one who brings you. The plain, homespun, and independent voter (turned off by George W. Bush and not especially attracted to McCain-Palin), put him in the White House where he danced with the seductive, slinky left-wingers. He continued to do so in the face of a clear, unmistakable message (brought by the election of Scott Brown, et al) that most Americans were adamantly opposed the left’s pet project which became Obamacare. Unless, as Caddell and Schoen put it, the President’s campaign is truly scorched earth, he will not be going home with the independents. I resist using another metaphor that describes what they have had enough of. For the WSJ essay see link.
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Washington needs only houses, cellars, kitchens, well-informed men, amiable women, and other little trifles of this kind.

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My always alert, knowledgable, and prescient brother Steve contributes this interesting tidbit from the writersalmanac.com

On this date in 1800, the United States Congress
met in the Capitol Building in Washington, D.C., for the first time.
Construction had begun on the domed building in 1793, but it soon fell behind schedule and went over budget, so in 1796 the planners made the decision to build only the Senate wing. On move-in day, some of the rooms were still incomplete, but the building was sufficiently finished to accommodate the Senate, as well as the House of Representatives, the Supreme Court, the Library of Congress, and some district courts. President John Adams had pushed for the move, even though the building wasn’t complete, because he hoped to gain Southern votes for his re-election campaign.
The weather didn’t cooperate, christening the first day of the new session and the new building with heavy snow. The welcoming parade had to be canceled, and congressmen were delayed trying to get to their offices, with only 15 making it into the chamber on opening day; it would be a further four days before enough senators were there to answer the quorum call and open the session. At that point, the House and Senate sent word to President Adams that they awaited his address. He arrived the following day; his was to be the last personal address to Congress by a president for the next 113 years.

Members of Congress were less than pleased with their new accommodations. Although richly appointed, the building leaked and had no heat. Washington was a primitive backwater, especially when compared to the civilized and well-established Philadelphia, where they had met for the preceding 10 years. One New York senator observed that Washington needed only “houses, cellars, kitchens, well-informed men, amiable women, and other little trifles of this kind” to make it perfect.
In its early days, the Capitol moonlighted as a church on the weekends; beginning with the Jefferson administration in 1801, church services were held every Sunday in the House of Representatives. Jefferson did not feel that this violated the separation of church and state, because attendance was voluntary and the services were nondiscriminatory — at least as long as you were Protestant, since all (and only) Protestant denominations were represented. Jefferson and his successor, James Madison, attended the services themselves. Worship services were expanded to include Catholic mass in 1826, and church meetings in the House continued until after the Civil War.
Both wings of the Capitol were completed just in time for the building to be burned by the British in 1814, during the War of 1812. Reconstruction began in 1815 and was completed in 1819; the first dome, however, wasn’t complete until 1826. By 1850, with the ongoing influx of new states and their new congressmen, it was clear that an expansion was in order. Built largely by slave labor, the new Capitol was nearly twice as long, which threw it out of proportion to the original dome. In 1855, they tore down the old timber dome and replaced it with the cast-iron version we’re familiar with today: three times the height of the original, and topped with a 20-foot statue of a woman holding a sword and a laurel wreath, known as Freedom Triumphant in War and Peace, or sometimes, Armed Freedom.
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