American and Latin American Politics, Society, and Culture
The Royal Canadian Mounted Police, their feds, have averted a potential bomb plot on a passenger train over the Niagara River
One police source said there were several scenarios being looked at during the year the suspects were tracked, including the train plot.
One of the plots uncovered by the RCMP and other agencies was a planned bombing of a passenger train on the bridge that connects Canada and the United States at Niagara Falls, a police source says.
Ed Morrissey has more.
Chris Edwards, writing on We Can Cut Government: Canada Did, brings up a very important point,
THE FEDERALISM ADVANTAGE
One of Canada’s strengths is that it is a decentralized federation. The provinces compete with each other over fiscal and economic matters, and they have wide latitude to pursue different policies. Federalism has allowed for healthy policy diversity in Canada, and it has promoted government restraint.
Government spending has become much more centralized in the United States than it has in Canada. In the United States, 71 percent of total government spending is federal and 29 percent is state-local. In Canada it’s the reverse — 38 percent is federal and 62 percent is provincial-local.
The federalism difference between the countries is striking with regards to K-12 education. While federal control over U.S. schools has increased in recent decades, Canada has no federal department of education. School funding is left to the provinces, which seems to work: Canadian school kids routinely score higher on international comparison tests than do U.S. kids.
The countries also differ with regards to the amount of top-down control exerted on subnational governments through federal aid programs. The United States has a complex array of more than 1,000 aid-to-state programs for such things as highways and education. Each of these aid programs comes with a pile of regulations that micromanage state and local affairs.
By contrast, Canada mainly has just three large aid programs for provincial governments, and they are structured as fixed block grants. It is true, however, that one of these grants helps to fund the universal health care system, which is a big exception to the country’s generally decentralized policy approach. Nonetheless, having just a few large block grants is superior to the U.S. system of a vast number of grants, each with separate rules and regulations.
A final federalism advantage in Canada is that provincial and local taxes are not deductible on federal individual tax returns. That structure promotes vigorous tax competition between the provinces. In the United States, state and local income and property taxes are deductible on federal income tax returns, which has the effect of blunting competition by essentially subsidizing hightax states and cities.
Go read the whole article.
The North American summit that the US media ignored was a disaster that the foreign media reported: IBD explains how Obama Alienates Canada And Mexico At Three Amigos
Obama’s neglect of our nearest neighbors and biggest trade partners has created deteriorating relations, a sign of a president who’s out of touch with reality. Problems are emerging that aren’t being reported.
Fortunately, the Canadian and Mexican press told the real story.
…
Energy has become a searing rift between the U.S. and Canada and threatens to leave the U.S. without its top energy supplier.The Winnipeg Free Press reported that Canadian Prime Minister Stephen Harper warned Obama the U.S. will have to pay market prices for its Canadian oil after Obama’s de facto veto of the Keystone XL pipeline. Canada is preparing to sell its oil to China.
Until now, NAFTA had shielded the U.S. from having to pay global prices for Canadian oil. That’s about to change.
Canada has also all but gone public about something trade watchers have known for a long time: that the U.S. has blocked Canada’s entry to the eight-way free trade agreement known as the Trans-Pacific Partnership, an alliance of the U.S., Australia, New Zealand, Vietnam, Malaysia, Peru, Chile, and Singapore. Both Canada and Mexico want to join and would benefit immensely.
With the media’s “layers of fact-checkers,”
U.S. media dutifully reported Obama’s false claim that Canada, our top trading partner, is too protectionist
But the Canadians know the truth,
Canada’s take was far more blunt: “Our strong sense is that most of the members of the Trans-Pacific Partnership would like to see Canada join,” said Prime Minister Stephen Harper, in essence revealing that it’s the Obama administration alone that is blocking Canada, and suggesting that payback on energy was coming.
…
Things were even worse, if you read the Mexican press accounts of the meeting.Excelsior of Mexico City reported that President Felipe Calderon bitterly brought up Operation Fast and Furious, a U.S. government operation that permitted Mexican drug cartels to smuggle thousands of weapons into drug-war-torn Mexico. This blunder has wrought mayhem on Mexico and cost thousands of lives.
The mainstream U.S. press has kept those questions out of the official press conferences, while Obama has feigned ignorance to the Mexicans and hasn’t even apologized.
In short, the summit was a diplomatic disaster for the U.S. and its relations with its neighbors north and south.
It should have been the easiest, most no-brainer diplomatic task Obama faces.
Go read the whole thing, while at the same time keep in mind that Obama diverted the press conference into the issue of Obamacare and the SCOTUS.
And he got his Constitution facts wrong.
UPDATE,
Linked by Moe Lane, and Instapundit. Thank you!
Linked by HACER. Thank you!
And now,
Canadian PM Harper: The Price The US Pays For Canadian Oil Is About To Go Up, Up, Up, Thanks To President Ladies’ Tee. AFTER KEYSTONE, WE’D RATHER SELL OIL TO CHINA (h/t Instapundit)
“Smart diplomacy”, folks, “smart diplomacy”…
In case you missed it, yesterday a summit took place between the three largest economies of North America: Canada, Mexico, and the USA. You would think this would be news as of itself, since it involves membership on the Trans-Pacific Partnership (TPP) free-trade zone.
Instead, Obama diverted the press conference into the issue of Obamacare and the SCOTUS, by cautioning the justices, to whom he referred to as “an unelected group of people,”
“I’m confident that the Supreme Court will not take what would be an unprecedented, extraordinary step of overturning a law that was passed by a strong majority of a democratically elected Congress,”
This was an attack on the court’s standing and even its integrity in a backhanded way
It is outrageous enough that the president’s protest was inaccurate. What in the world is he talking about when he asserts the law was passed by “a strong majority of a democratically elected Congress”? The Patient Protection and Affordable Health Care Act barely squeaked through the Congress. In the Senate it escaped a filibuster by but a hair. The vote was so tight in the house — 219 to 212 — that the leadership went through byzantine maneuvers to get the measure to the president’s desk. No Republicans voted for it when it came up in the House, and the drive to repeal the measure began the day after Mr. Obama signed the measure.
It is the aspersions the President cast on the Supreme Court, though, that take the cake. We speak of the libel about the court being an “unelected group of people” who might “somehow overturn a duly constituted and passed law.” This libel was dealt with more than two centuries ago in the newspaper column known as 78 Federalist and written by Alexander Hamilton. It is the essay in which Hamilton, a big proponent of federal power, famously described the Court as “the weakest of the three departments of power.” It argued that the people could never be endangered by the court — so long as the judiciary “remains truly distinct from both the legislature and the Executive.”
It was precisely the separation of the courts from the other two branches, Hamilton argued, that gives the court its legitimacy.
With his statement, President Obama Goes on Record Opposing Marbury v. Madison.
Q&O:
it isn’t the job of the Supreme Court to do the job of Congress. Instead, its job is to determine whether or not what Congress has done is compliant with the limits the Constitution places on it. That’s it. There is nothing which requires the Supreme Court to “fix” laws that Congress has passed.
Obama’s assault on “an unelected group of people” stopped me cold. Because, as the former constitutional law professor certainly understands, it is the essence of our governmental system to vest in the court the ultimate power to decide the meaning of the constitution. Even if, as the president said, it means overturning “a duly constituted and passed law.”
So the joint press conference with Felipe Calderón and Stephen Harper accomplished…what?
1. Obama’s going after the Supreme Court as his bête noire, knowing they cannot respond.
2. It showed that the President needs a remedial course in judicial review.
and,
3. It demonstrated to Mexico and Canada that they are mere side ornaments when it comes to Obama’s priorities: Critical issues that involve the three countries count for nothing.
Canadian officials have said that they have been willing to put everything up for negotiation—including, some officials say, dairy products and other issues such as a U.S. push for Canada to increase intellectual-property protections.
TPP joins a list of recent points of tension in the world’s largest trade relationship. Canadians were angered by “Buy America” provisions in last year’s U.S. stimulus plan, new surcharges imposed on Canadians traveling to the U.S. and regulatory delays in approval for the Keystone pipeline, a massive project to move crude from the oil sands of Alberta to U.S. refineries.
But hey, after his next election Obama will have more flexibility.
As a side note,
When you read the full transcript, note the condescending tone towards Calderón (“Felipe, Stephen and I are proud to welcome you here today”).
UPDATE,
Don’t miss Judidical activism for me, but not for thee
This is an email from Kermit Hoffpauir, which I’m sharing with my readers,
The Real Importance of Keystone XL
After constantly reading all of the media coverage regarding the Keystone XL and its importance, there are some very key facts missing. This pipeline has geopolitical importance and not because it would be carrying just any grade of crude oil, but a heavy crude oil with an API gravity of 20, or less. Here I would like to address the fact that Canadian Syncrude is a replacement feedstock for refineries producing an important commodity, Venezuela’s crude problems and the cost of converting “regular” refineries into heavy crude process ones.
I had originally written an email describing this and sent to a friend who posted it as an article, on his website here http://tinyurl.com/7l94ko7
For those unaware of crude oil and types of refineries and where sources of crude oil are from for them and certain products, I have already proposed that Venezuela is the sole major beneficiary of the blocking of the Keystone XL. Meanwhile the chattering class is hollering Warren Buffett’s railroad, there is much more to this than that.
First, Keystone XL was to bring HEAVY crude to the Gulf Coast (TX & LA) where 12 refineries use heavy crude as a feedstock. Primarily this is Venezuelan crude, which is a good bit less expensive and great for producing petroleum coke. Canadian Syncrude is also a heavy crude, though not as heavy as Venezuelan, and would be a stable supply. We have imported around 1.2 Million Barrels per Day of this crude in recent years. Additionally, Hovensa (Hess Oil/PDVSA 50/50 venture) imports a substantial percentage for its refinery in St. Croix, the largest refinery on U.S. soil rated at 500,000 barrel per day crude charge capacity.
Hovensa is shutting down!
That would mean that Venezuela LOSES over 1 Million Barrels per Day of oil exports. There are very few refineries in the world to utilize its crude as a major feedstock. It could be used as blending with light crude but not much else. All the talk about Warren Buffett is a sideshow, and should have nothing to do with the real reason behind Keystone XL.
Petroleum coke technology is a result of squeezing the very bottom of the barrel, into producing more gasoline. In the late 1970′s a market was developed for fuel grade petroleum coke, and by the early 1980′s the one time nuisance by product, petroleum coke suddenly became profitable. Almost overnight, Venezuelan crude became desirable for several refineries, located mainly in Texas and Louisiana, which had the ability to cost effectively refine it. Billions of dollars were poured into these and other regional refineries in upgrades, and export facilities. By the early 1980′s Lake Charles, LA became the center of the petroleum coke exports for the world, with both the Citgo and Conoco refineries going full bore into producing and exporting, through the newly build state of the art outdoor storage facility connected to the Port of Lake Charles Bulk Terminal No. 1. By 1982 ships loading from 10,000 to 40,000 tons of this cargo were headed to many part of the world, but in particular to Livorno, Italy for use as a fuel to replace coal in lime kilns for cement manufacturing. A small West German steel company’s (Otto Wolff) trading division played a key role in this and surpassed the two former leaders, Great Lakes Carbon and International Minerals & Chemicals, in contracts with petcoke producers to supply the new European fuel market. Heavy crudes are great for producing petroleum coke, not light crudes such as those coming from the new shale oil production or Alaskan North Slope. The only type of crude equivalent, here in the U.S., is around Bakersfield, CA.
While Houston is NOT a key petroleum coke market (contrary to Newt Gingrich’s claim that it would consume Canadian Syncrude) Lyondell’s refinery there has been a leader in petcoke production and use by building a cogeneration unit with the metalurgy required for the higher btu value, over coal, to use some of its petcoke production.
All of this was BEFORE Venezuela’s state oil company, PDVSA took part ownership position in several refineries in the U.S.
Today, the U.S. is the world giant in petcoke production with over 53,000,000 tons per year being produced annually. It exports close to 50% of that capacity (8 times the exports of Venezuela). China has in fact increased its petcoke production capacity to 50% that of the U.S. and imports more from elsewhere.
Since Hugo Chavez came into power, Venezuela’s crude oil production has declined by 35%. In late 2002 and well into 2003, a large number of management and professional employees of PDVSA went on strike to protest Chavez’s power and policy. This sent Gulf Coast refiners scrambling for a replacement heavy crude, the declining PEMEX grade of Mayan Crude filled the gap for the several months it was needed. There is no major source of such a heavy crude outside of Canadian Syncrude.
The capital investment required to refine Canadian Syncrude is nothing to sneeze at. ConocoPhillips spent $4 Billon on its Wood River, IL refinery in new process units and upgrades. Marathon spent $2 Billion on its Detroit refinery for the same reason. ConocoPhillips was lucky that it only had to spend a few hundred million dollars at its Borger, TX refinery and converted a 200,000 bpd pipeline from Cushing to Borger to enable it to handle heavy crude. Hovensa had spent $8 BILLION in the late 1990′s to enable it to take more Venezuelan crude. It had successively converted 2 crude units in previous years, into visbreakers, and lowered its overall crude capacity for the the world’s largest at 650,000 bbls per day to approximately 500,000 bpd to capitalize on the lower prices of heavier crudes.
One more thing. Canadian crude sells for $68 per bbls at terminal of origin in Hardesty. Venezuelan sells for the same as Brent but with a $5 –10 discount at port of origin loaded aboard ship which makes it above $110 per bbl.
Here is a little more about fuel grade petroleum coke http://www.cembureau.eu/
newsroom/article/how-petcoke-market-functions-petroleum- coke-used-combustible-cement-kilns
The NY Times has a graph on
Money Laundering at Lebanese Bank
The chart below shows the intricate money-laundering system the Lebanese Canadian Bank used to divert money to the Shiite militant group Hezbollah, according to United States officials.
The report: Beirut Bank Seen as a Hub of Hezbollah’s Financing
At the same time, the investigation that led the United States to the bank, the Lebanese Canadian Bank, provides new insights into the murky sources of Hezbollah’s money. While law enforcement agencies around the world have long believed that Hezbollah is a passive beneficiary of contributions from loyalists abroad involved in drug trafficking and a grab bag of other criminal enterprises, intelligence from several countries points to the direct involvement of high-level Hezbollah officials in the South American cocaine trade.
…
The revelations about Hezbollah and the Lebanese Canadian Bank reflect the changing political and military dynamics of Lebanon and the Middle East. American intelligence analysts believe that for years Hezbollah received as much as $200 million annually from its primary patron, Iran, along with additional aid from Syria. But that support has diminished, the analysts say, as Iran’s economy buckles under international sanctions over its nuclear program and Syria’s government battles rising popular unrest.Yet, if anything, Hezbollah’s financial needs have grown alongside its increasing legitimacy here, as it seeks to rebuild after its 2006 war with Israel and expand its portfolio of political and social service activities. The result, analysts believe, has been a deeper reliance on criminal enterprises — especially the South American cocaine trade — and on a mechanism to move its ill-gotten cash around the world.
Venezuela plays a part, too,
According to Lebanon’s drug enforcement chief, Col. Adel Mashmoushi, one path into the country was aboard a weekly Iranian-operated flight from Venezuela to Damascus and then over the border. Several American officials confirmed that, emphasizing that such an operation would be impossible without Hezbollah’s involvement.
It doesn’t end there.
Go read the whole thing.
Now that the Canada-Colombia Free Trade Agreement is law, US wheat growers are feeling the pinch (emphasis added; h/t Instapundit),
On Monday, the Colombia-Canada Free Trade Agreement (FTA) entered into force. It is an agreement first signed on Nov. 21, 2008, nearly two years to the day after a U.S.-Colombia FTA was signed. Now most Canadian industries enjoy duty-free access to the growing Colombian market. In contrast, because our government has allowed our FTA to languish, Colombian importers must still pay tariffs on most U.S. goods. For wheat, that tariff overcomes the natural advantage U.S. exporters otherwise have in providing quality wheat on a timely basis to our valued Colombian customers.
The stakes are particularly high for U.S. farmers as roughly 50 percent of U.S. wheat and 25 percent of all U.S. agricultural production is exported. In 2010/11, the United States exported more than 35 million metric tons (MT) of wheat — roughly 60 percent of last year’s production — to about 70 countries. The United States is the largest supplier of wheat to the world and these exports provide worldwide customers with a competitive wheat source while returning an economic boost to the U.S. economy.
The U.S. wheat industry has worked hard to build a reputation as a reliable supplier. While American farms are largely family-run operations, they are businesses that understand the importance of trade to their customers. The U.S. wheat industry has a long history of promoting fair and open trade and looks forward to implementing pending and future trade agreements such as the nine-country TransPacific Partnership agreement to maintain its competitiveness in world markets. We can only hope that our customers in Colombia, as well as in South Korea and Panama*, understand this situation for what it is: a domestic political struggle that accomplishes only confusion, frustration and diminished trust.
U.S. wheat farmers will not give up on trade and once more call for the immediate ratification and implementation of the U.S.-Colombia FTA so U.S. producers and our Colombian customers can benefit from bilateral trade conducted on a level playing field.
Last week President Obama decried that the FTAs with South Korea, Panama and Colombia had not been passed by Congress. Well, where are they?
On his three-state tour in the Midwest this week, Mr. Obama repeatedly told audiences that the Korea, Colombia and Panama free-trade deals would all be law by now if not for an obstructionist Congress. Passing the deals is something Congress “could do right now,” he said.
Except that’s not true. Congress can’t pass the agreements “right now” because it doesn’t have them. They are still sitting on the President’s desk. Seriously.
If you are surprised to learn this, you are not alone. White House deputy press secretary Josh Earnest only learned the news on Friday during a press conference. Asked why the FTAs haven’t been sent, he responded, “We have not sent them over?”
That was followed by what might be called an awkward moment. “I will say this—I mean, there has been an active dialogue that’s been underway between the United States trade representative, other members of the Administration, with the appropriate Congressional leaders in the committees of jurisdiction. We are in a place where we have seen Republicans advocating for passing these free trade agreements for quite some time,” Mr. Earnest explained. He also pointed out that “these three trade agreements combined would create or support about 70,000 jobs here in the U.S.”
A reporter persisted and asked, “Well, when are you going to send them over?” “But I can tell you that there’s no reason—I mean, there’s agreement here about the benefits of these trade agreements getting through the Congress, both here at the White House and Democrats and Republicans on Capitol Hill. Mr. Earnest referred reporters to “Congress or the USTR on the legislative mechanics of this,” adding that “there is bipartisan agreement on this and it’s something that we should move on really quick.”
I have been writing about the Colombia FTA for nearly five years and thought I had heard it all, but this one takes the cake.
We’re in the best hands.
The bus was built in Canada by Prevost,
The feds bought the two coaches for $2.2 million from Hemphill Brothers Coach, based in Tennessee. It installed custom interior upgrades into the Prevost shell, which accounted for about half the cost.
The contract lists the country of origin as Canada and place of manufacture as “outside U.S. – Trade Agreements,” a possible reference to the North American Free Trade Agreement.
Right on time for the Canada-Colombia FTA, too.
Sam Youngman of The Hill calls Obama a road warrior with an anti-Washington message. Really. Take a look,
If Obama brings his populist, anti-Washington anger back to the White House, pulling out the brass knuckles to battle with Congress, Democrats will rally around him.
Sam must have forgotten that by virtue of being POTUS for the past 2.5 years, Obama is Washington.
The question is, did the dog eat the recovery?
Once the bus tour ends, Obama goes to and returns from vacation, and returns to Washington, he’ll be giving “a major speech in early September to unveil new ideas for speeding up job growth“. This carries the sound of approaching thunder: the storm will be most likely a QE3. Obama’s job creation “plan” was the stimulus, and QE2. The plan was huge, unprecedented federal spending – that’s the only plan.
What did that get us? Deficits!
If Obama had any other plan, he would have unveiled it on day one of the Greyhound One tour, and would have stolen the show from the Republicans entering the presidential race.
What he has mentioned so far is stale,
On the second day of Obama’s three-day bus tour of the upper Midwest, the president worked off the blueprint he had used the day before, offering proposals such as extending a payroll tax cut, spending money to repair roads and bridges, and ratifying pending trade agreements.
More not-quite-shovel-ready road repairs, trade agreements that have been blocked by his own party for the past 4 years, and extending a payroll tax cut? Been there, done that. Meanwhile, Obama’s proposed budget was rejected by his own party, and the Democrats are now taking us into the third year in a row without approving a federal budget.
Hence, he’ll blame Congress.
Richard Fernandez looks at the possible results of that gambit,
In all likelihood, the President’s decision to “blame Congress” will mean an increasing polarization in politics on which basis he will be utterly dependent. He cannot now win on a rising economy so his last chance is to invoke the struggle 24×7. It would be an ironic political fate for the man who promised to be the great uniter and world Grand Bargainer. Ultimately people’s fates are bound up with the forces they unleash and not by what they say.
The motorcade rolls on,
