Chicago Crony Capitalism on the Links

Tom Cotton on Clinton Corruption

Tom Coburn on the DC Racket

"My vote can't be bought but it can be rented"

As revealed through Wikileaks, transcripts of Democrat Presidential nominee Hillary Clinton (D-NY)'s lucrative speaking engagements to banks had some embarrassing allusions.  

It was telling how Mrs. Clinton echoed former Senator John Breaux on how votes can not be bought but may be rented.  That seems particularly egregious considering the pay-for-play accusations of Clinton Foundation donors getting concierge service while Secretary of State Clinton was at Foggy Bottom.  

And it also calls into question former President Bill Clinton's lucrative speech  in Kazakhstan and Clinton Foundation donations before the State Department approved Russian affiliated company Uranium One taking control of 25% of America's uranium stock

Hillary Clinton on Everyday Americans

During one of Democrat Presidential nominee Hillary Clinton's (R-NY) reintroduction to America (after her quarter century in the spotlight) tried to employ the conceit of identifying with Everyday Americans.



This political tact evolved in the General Election campaign to be Stronger Together.

But the Wikileaks release of Clinton confidant John Podesta's emails to the Clinton campaign tells quite a different story.

It is curious how Hillary Clinton has amassed a $250 million fortune since she and her husband former President B.J. Clinton left the White House are identified with everyday Americans yet foster such cynical contempt of the people that they supposedly champion.

Epipen Epilogue

After the hue and cry last week over accusations of price gouging over EpiPens, the manufacturer Mylan Pharmaceuticals announced that it would begin supplying a generic anti-anaphalaxis medical device that will be half the current $600 price of EpiPens for a two pack.  Mylar noted that the EpiPen brand will also be available for those who are weary of taking generics.

Investors rewarded Mylar at this announcement with a 2% increased valuation in stock. But the public will have lingering suspicions that Heather Bresch sought to inject crony capitalism into EpiPen price gouging. 

Outrage Over EpiPen Exploitation

As the school year is beginning and students with allergies are adjusting to new environs and routines, it has come to light that the cost of EpiPens, a life saving medical device to treat anaphylaxis from food allergies and bee stings, has skyrocketed.

The price of an EpiPen has gone from $57 to over $400 a unit.  This dramatic price increase prompted one exasperated mother to concede that she is no longer putting away money for her kid's college fund but in order to save for EpiPens.

While Mylan, the manufacturer of EpiPens, has declined to indicate the reasons for the price spike, pharmaceutical manufacturers typically impose significant price in the waning years of a monopoly before generic alternatives are allowed on the market.  However, in this case, the FDA has unexpectedly rejected a generic anaphalaxis alternative from Teva, requiring "more data".  And dosing problems prompted Sanofi pharmaceuticals to pull Auvi-Q (a non-generic treatment) from the market.  So EpiPens has a virtual monopoly on anaphylactic remedies as Mylan was seeking to suck every last cent of profit from EpiPens.

It may raise eyebrows that as Mylan acquired its virtual monopoly for EpiPens, Mylan's CEO Heather Bresch saw a 671% increase in  salary and compensation, going from $2.4 Million to a reported $18.9 Million. And it is an inconvenient truth that Ms. Bresch is the daughter of Senator Joe Manchin III (D-WV) who has donated $60,750 from 2011 to 2015. Between the generous financial support and filial ties,  it raises the specter of crony capitalism and possible nepotism. 

While Senator Manchin does not directly sit on heath committees and has voiced public concern over the incredible cost increases for EpiPens, his daughter might not be grilled harshly by his colleagues.  And it is unclear how the FDA decided that they needed more data for the generic.  With accusations of State Department concierge service associated with the Clinton Foundation and the politicization of Executive Branch Agencies (EPA, Energy, Agriculture etc..) and supposedly Independent Agencies (e.g. FCC on net neutrality), family ties may expedite an advantageous environment.  Or perhaps it's just another isolated incident of corporate serendipity .

The public was outraged by the EpiPen exploitation.  Sarah Jessica Parker, whose son suffers from anaphylactic shock, agreed to be the celebrity spokeman for EpiPens.  When this controversy arose, Sarah Jessica Parker went on social media to end her association with Mylan, thus walking away from a lucrative endorsement contract.

Mylan sought to mitigate the public relations mess about EpiPens by announcing that a family of four making $97,000 would pay nothing out of pocket for the prescription. That sounds nice but the inflated costs are just passed along to insurers and employers. With Obamacare on the precipice of a financial death spiral in 2017 and insurers pulling out of health exchange markets, this solution is a mere chimera. 

John Bolton: Vote for Hillary--Not Indicted Yet!

 

On Crony Capitalism and Establishment Access

Carly Fiorina on Political Access

As former 2016 Republican Presidential candidate Carly Fiorina endorsed her erstwhile rival Senator Ted Cruz (R-TX) for the GOP nomination, she let loose on the buying and selling of political access. Fiorina was tough on GOP front runner Manhattan mogul Donald Trump as well as the likely Democrat nominee former First Lady/Senator/Obama Secretary of State Hillary Clinton (D-NY).

Robert Reich on Crony Capitalism and Democrat Politics

Hillary Clinton's Rich Imagination About a National Infrastructure Bank

During a private fundraiser in  Greenwich Village New York City,  Democrat Presidential hopeful First Lady Senator Secretary of State Hillary Clinton (D-NY) raised the prospect of establishing a national infrastructure bank modeled after the Clinton Foundation.




So it seems that Mrs. Clinton has more ideas than just "Vote for Me, I'm a Woman who married Bill". The trouble is that using the Clinton Foundation as a model raises all sorts of questions about crony capitalism, influence peddling, governmental waste and eviscerating the proper budgetary role of the legislative branch.

According to the Hillary 2016 campaign, such an infrastructure bank would “leverage public and private capital to invest in critically important infrastructure projects, including energy infrastructure projects.”  But hasn't this been tried already, like the $534 million given to Solyndra as part of President Obama's 2009 Porkulous? A lot of good that "shovel ready" pork barrel project did. 

Then there is the favoritism problem. What entities are allowed to draw from such a hypothetical infrastructure pot?  Conservatives railed against the Export-Import Bank as being crony capitalism which favors select international big businesses.  Why should the government be picking winners and losers and funding some of them?

Of course, there is the thorny issue about where the money comes from.  With the Clinton Foundation, people betting on getting access to a future power broker like Mrs. Clinton were happy to contribute millions of dollars.  Where would this pot of gold come from?  

But at least Hillary Clinton's rich imagination about a National Infrastructure Bank temporarily took away the public's focus on Hillary's E-mail irregularies. 

h/t: Washington Free Beacon 

Why the Red Card on the F.I.F.A. World Cup of Corruption?

In the wake of Attorney General Loretta Lynch pulling out a red card on 14 F.I.F.A officials for an alleged World Cup of Corruption, Russian President Vladimir Putin opined that the Americans were offsides. 

It is bizarre that Putin purports that the United States is culminating a three year investigation in order to interfere with the F.I.F.A. election of Joseph Sepp  Blatter, but that sort of agiprop distracts from the Russians continuing to mass heavy firepower on the Ukrainian border. But then again, Putin's Russia used the Sochi Winter Olympics as cover for initially invading Crimea in 2014.

To answer why the Department of Justice issued a 47 count indictment over F.I.F.A. corruption, it is worth noting that the plots were hatched in the United States and utilized the U.S. banking system.  It is wrong to think that the F.I.F.A. case does not affect American politics either.  The United States missed out on winning the 2018 World Cup to the Russian Federation's Sochi bid and the out of the box award to Qatar in 2022.  The U.S. would be a natural backup in case either the Russian or Qatari bids fall through.

Moreover,  the Clinton Foundation received between  $50,000 and $100,000 and partnered with the Fédération Internationale de Football Association.  President Bill Clinton was said to have been so upset at the US losing the 2022 World Cup bid to Qatar that he smashed a mirror.  But the Qatar 2022 tried to make it up by giving the Clinton Foundation  $250,000 and $500,000 as well as the Qatari government pitching in between $1 million and $5 million.

This may only be the beginning of the F.I.F.A. fallout. Suddenly the business of soccer has become very exiting.  Goooooooooooool!

h/t: Steve Bell

China's War on Golf

Last week, the Chinese Central government began a crackdown on golf by shutting down 66 "illegal" golf courses, which is 10% of the nation's fairways.  While  Beijing has be officially forbidden the construction of new golf courses since 1984, they have proliferated in the PRC. Between 2004 and 2009, 400 new golf courses were created despite the ban (tripling the number of links). But as the Chinese maxim goes, the mountain is high and the emperor is far away.

Aside from being good for generating yuan for their communities by catering to elites, foreign tourism and sparking ancillary business opportunities, golf courses were a great way to gain graft.
The local officials would line their pockets from the construction (as they expropriate peasants' land and profit from the sale to the golf industry) and they are can be surreptitiously sanctioned as being "ecological restorations".  How conveniently corrupt.

The day after the golf course crackdown occurred, a Commerce Ministry official was investigated (effectively being found guilty) for participating in a golf event, which violated one of Chinese President Xi Jinping's eight rules against extravagance by government officials. From a political perspective, it makes sense for a fledgling government to embrace the game.

Despite the burgeoning number of golf courses in China, it is considered "the millionaires game". Mao Zedong banned golf in 1949 as bourgeois "green opium".  Today, a round of golf can cost $150, in a nation where the average daily salary is $5. So it still remains "the rich man's game".

From a political perspective, it makes sense for a fledgling government not to be seen embracing the game of golf.  Gordon Chang has been warning for years that the Chinese economy is on a precipice and a severe world financial downturn which results in a weak demand for cheap Chinese labor could spark a downfall in the current polity in Beijing.  So a public crackdown from the Beijing government  on golf appeals to the have nots to  quell any clamoring for revolution while President Xi Jinping re-establishes central control over wayward provincial politicos engaged in crony capitalism.

Yet it is unlikely that China's War on Golf will actually forbid the game.  Beijing has been spending serious capital on grooming a team to qualify for the Rio de Jainero Olympics in 2016.  It's a tension between domestic tranquility and international glory.

Dan Washburn, the author of  "The Forbidden Game" (2014) considers Chinese Golf to be apt allegory for the corruption, land grabs, environmental issues and escalating economic disparity that have become hallmarks of New China.



Washburn is ambivalent as to what will result from the war on golf.  Washburn's metric is how the seized fairways are used in five years. Considering China's dismal track record on environmental issues, it is dubious if the seized courses will end up as actual "ecological restorations".

Will they be re-appropriated like the Shanghai Golf and Country Club in Hongqoai Park, which was converted into the Shanghai Zoo in 1954?  Or will the seized courses go the way of Wonderland, a Chinese rip off of Disneyland, which is rotting away due to lack of business and uncertain legalities.  China has a series of ghost cities, which are colossal waste of investment that temporarily pump up the GDP and esteem of a local official while saddling the area with a white elephant and a mountain of debt.

h/t: Dan Washburn 

Is Common Core a Co-Creation of Political Correctness and Crony Capitalism?

During a forum  held by the New Hampshire Institute of Politics at Saint Anselm College, Granite State professor Dr. David Pook offered that he helped craft the Common Core Standards for English Language Arts because of "white privilege".  

Ironically, the Derryfield School in Manchester, New Hampshire (which has a 91% Caucasian student body) where Pook serves as chair of the History Department, does not use those Common Core standards because they are inferior.

So why do some politicians continue to champion Common Core? Some have suggested crony capitalism. 

Former Florida Governor Jeb Bush (R-FL) is a big backer of Common Core.  Kathleen Jasper, a former Florida educator and founder of ConversationED.com, suggest that there may be pecuniary interests in pushing Common Core.  Jeb Bush's Foundation for Excellence in Education is heavily tied to Pearson, a leading education publisher and test making company.  So Pearsons publishes the k-12 books, they create the tests, they score the tests and coincidentally keep the data.

Per Jasper, Pearson garners between $15-$30 for each test administered.  Due to No Child Left Behind and Race For the Top federal mandates, students have to retake the tests over and over again until they achieve an acceptable score.  So kids keep constantly taking tests (without knowing why they failed) and businesses like Pearson profit from processing the perpetual paperwork. 

Presuming this is an accurate assessment, it is ironic to see how Educrat's political correctness works well with crony capitalism in Common Core which imposes a regime which profits from failure to educate well. 

h/t: American Thinker 

Greg Gutfeld on Politics

For those who can stare into the cacotopic cyber crystal ball and see what is in store for Obama's America, witness the Mo-Town Owe-Town Fugue.

Jason Brennan on Cronyism

Mike Lee on Cronyism

Freshman Senator Mike Lee (R-UT) shows that he is not afraid to call out his own as well as those in the opposing party to advance ideals of the free market. No wonder why Lee is a darling of Tea Party types.

Some of the Media Maelstrom Over DirecTV Dropping The Weather Channel Carriage

DirecTV, the nation’s largest satellite television provider, has suspended carriage of NBC/Universal’s The Weather Channel over a contract dispute.   This DirecTV disruption takes away 18% of The Weather Channel’s normal viewer base.

The Weather Channel had been garnering 13 cents a subscriber per month and TWC was negotiating for a 1 cent increase whereas DirecTV wanted to cut the carriage cost by 75%, supposedly to make up for local carriage costs.

Rather than frame the carriage kerfluffle as a business to business dispute, The Weather Channel President David Clark  framed it as a public safety problem.  The Weather Channel urged customers to contact Congress to intervene in the dispute.  Hours after The Weather Channel was pulled from DirecTV, TWC announced a new initiative to bolster its status as a public utility, by promoting Twitter hashtags such as #gotfuel, #nofuel and #powerlinedown.  These public service internet announcements by TWC follow the direction of the White House, FEMA and the Department of Energy.

For its part, DirecTV added WeatherNation on channel 361 as a substitute weather station.  WeatherNation was created in 2010 after a prior carriage dispute with The Weather Channel.  DirecTV has promised to activate temporary emergency weather channel as warranted (e.g. for a major hurricane).  However, DirecTV points out that in an age of mobile telephony, many weather watchers get their updates via their cell phones and mobile devices.  Furthermore, The Weather Channel has added reality television programs which may increase viewership but seemingly distracts from their supposed public service and information mission.

As the carriage contract dispute continues, The Weather Channel CEO Danny Kenny stiltedly stated: "I am shocked they have put corporate profits ahead of keeping a trusted channel.. We are not looking for a large fee increase. I am hopeful DirecTV will come to their senses soon."  What a way to treat a broadcast partner–  demand a fee increase, muddy your opponent and then threaten to have Big Brother intervene.

The Weather Channel  also trashed WeatherNation as being "a cheap start-up that does weather forecasting on a three-hour taped loop, has no field coverage, no weather experts."  The Weather Channel is right to be worried about competition.  The same day that DirecTV dropped TWC, Accuweather announced its previously secret plan to launch its own weather channel in the third quarter of 2014.  And in October, 2014, Network Weather Channel, which bills itself as having legendary personalities, is set to premiere with easy to read maps 24/7 and no programming.  

Prior to the DirecTV dispute, the Weather Channel bragged at it was in 80% of American households.  But with the  an array of forthcoming competition,  The Weather Channel seems intent to protect its position by ingratiating itself with Uncle Sam to be considered like a public utility with an exclusive on weather.

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The Weather Channel’s public service play and campaign to coerce Congress into action stinks of crony capitalism and foreshadows the dangers of the government picking winners and losers in the marketplace.   It is unlikely that all four televised meteorological stations will broadcast for long together.  But the prospective competition may lead to a price war which lowers carriage rates.  Those channels offering the most appealing programming and with the most savvy business sense should flourish if there still is a free marketplace, that is if there is still a free marketplace. 

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SEE MORE at DCBarroco.com

Blurry Focus for Traffic Cameras

Several developing stories are capturing the real picture about the use of traffic cameras by state and local governments.

New Orleans will start enforcing traffic camera violations on their current biggest scofflaws, city employees driving municipally owned vehicles. But this policy won't take effect until wiping the slate clean first.

Maryland legislators want to give blanket exemptions to traffic camera tickets for all emergency and law enforcement vehicles, whether or not they are responding to an emergency. Maryland lawmakers have also effectively admitted that traffic cameras are intended for revenue generation not public safety.

If that is not enough, Maryland legislators are poised to allow private companies, not law enforcement officials, to officially certify traffic camera violations.

It seems like the lines between public and private are becoming blurred and the bias also now profit as opposed to public safety.

READ MORE at the DCBarroco website