Notable & Quotable: David Malpass ‘The Fed has been hurting growth and causing income inequality by misallocating capital to bond issuers.’

From economist David Malpass’s statement to the House Financial Services Committee’s subcommittee on monetary policy and trade, May 17:

I think the Fed has been hurting growth and causing income inequality by misallocating capital to bond issuers. By constantly replenishing its giant long-maturity bond portfolio, it biases the credit system in favor of bond issuers at the expense of smaller borrowers, notably the small new businesses that are critical to U.S. dynamism. The Fed should change direction, including downsizing its balance sheet, reducing its $2.4 trillion in bank debt, reducing the interest rate it pays banks, and shortening the maturity of its $4.2 trillion bond portfolio. These steps would increase growth and income, especially for the middle class which has seen an unprecedented decline in real income during the recovery. . . .

Though I’m critical of Fed policy due to its negative impact on growth and median income, I want to make clear that I support the Fed as an institution. The problem is that Fed policies aren’t working. Its concept of its mission has grown way too large and is not sufficiently focused on maintaining a strong and stable dollar. It has created a huge balance sheet and regulatory apparatus that hurt growth, and it is allowing itself to house inappropriate executive branch functions such as the Consumer Financial Protection Bureau.

ObamaCare: A Crony Capitalist’s Best Friend Congress blocked the law’s bailout of insurers—who are now suing to reinstate the sweetheart deal, Marco Rubio

The evidence keeps mounting: Six years after being signed into law, ObamaCare is a costly and unsustainable disaster.

Look at what has happened in the past month alone. A federal court ruled that the Obama administration violated the law by spending money on ObamaCare subsidies without an appropriation from Congress.

In Florida, 15 health insurers are seeking an average increase in premiums of 17.7% for 2017. The continued raiding of Medicare Advantage—ObamaCare was projected in 2012 to cut $156 billion from the program over a decade—hurts many seniors in my home state and nationwide.

The health law’s sweeping mandates continue to target faith-based organizations like the nuns of the Little Sisters of the Poor. These nuns remain tied up in litigation because they rightfully believe that God and the Constitution’s religious-freedom protections are higher authorities than President Obama and his administration’s unconstitutional and liberal agenda.

ObamaCare is also bringing out corporate America’s worst crony-capitalist impulses. The health-insurance lobby has teamed up with trial lawyers to sue the federal government—through individual lawsuits and a $5 billion class action—for not following through on a sweetheart bailout deal buried in the law. This provision of ObamaCare would have required taxpayers to bail out insurers for losing money on the health-care exchanges.

I was the first person in Congress to take action to stop these bailouts. In late 2013 I introduced legislation to repeal this provision entirely and later another bill to make this so-called “risk corridors” program “budget neutral.” My conservative colleagues and I sounded the alarm about the likelihood of a taxpayer-funded bailout of health insurers (and were mocked as Chicken Littles for it). But we built a coalition to stop the bailouts.

When it came time to pass a spending bill at the end of 2014, we succeeded in making it the law of the land that the ObamaCare bailout program could not cost taxpayers a single cent—which ended up saving taxpayers $2.5 billion. In December of last year, we came back and repeated the feat. Now I am urging leaders in both the House and Senate to make this a priority and stop the bailout a third time.

That the health-insurance companies are suing to try to get their bailout is disgusting. The law—not to mention corresponding legal opinions issued by the federal government—makes clear that Congress must appropriate any net spending by the risk-corridor program.

In fact, one reason it was important to make clear in the law that the risk-corridor program must be budget-neutral was to protect the federal government from this exact kind of lawsuit that insurers have now filed against it. Because payments are being made only using fees paid by the insurance companies, the program is fulfilling its statutory obligation. CONTINUE AT SITE

Austrian Freedom Party: Victory in Defeat Austrian Presidential Elections Reveal Deeply Divided Country by Soeren Kern

European political and media elites have been quick to hail the election of Van der Bellen, who campaigned on a pro-immigration, pro-EU platform. They seem to believe his razor-thin win validates their uninterrupted pursuit of European multiculturalism.

Meanwhile, European elites have expressed relief at Norbert Hofer’s defeat. Their reactions would indicate that they unaware that they are largely responsible for the rise of anti-establishment parties in Austria and other parts of Europe.

“Europe has been polarized for years by misguided policies pursued by the old major parties, not only in Germany but in many European countries. The fact is that it must be our task to preserve freedom, democracy and the rule of law across the continent. And the policy of open borders does exactly the opposite.” — Frauke Petry, Alternative for Germany party.

Norbert Hofer of the anti-immigration Austrian Freedom Party (FPÖ) has been narrowly defeated in his bid to become Austria’s next president.

Alexander Van der Bellen, former leader of Austrian Greens party, won 50.3% of the vote, compared to 49.7% for Hofer. The margin of victory was 31,026 out of nearly 4.5 million votes cast.

European political and media elites have been quick to hail the election of Van der Bellen, who campaigned on a pro-immigration, pro-EU platform. They seem to believe his razor-thin win validates their uninterrupted pursuit of European multiculturalism.

UCI 911: Police Rescue Jewish Students as Intifada Returns to Campus By Rabbi Yonah Bookstein

Hearing chants of “Long live the Intifada” on video shot at UCI Wednesday night brings back the tumultuous and scary days as a campus rabbi at University of California, Irvine. (Video below)
As the campus rabbi at UCI for almost five years, I became accustomed to constant anti-Israel programs, racist and anti-semitic speakers, anti-Israel marches, protests and disruptions and an administration that looked the other way or denied how bad it was.
The atmosphere was so toxic, that in a blog post in May of 2006, I coined the phrase “UC Intifada” to describe their hateful anti-Israel, anti-Jewish campaign.
The Muslim Student Union later adopted it as their motto, made t-shirts, and it can be seen today on the Students for Justice – UCI Facebook page.
The most infamous episode — but by no means the worst — was in February 2010, when eleven Muslim students conspired to prevent Ambassador Michael Oren from speaking, and then lied about it. This embarrassed then UCI President Drake and the University, and the climate improved as the ring-leaders were now having to defend themselves on criminal misdemeanor charges. They had less time to parade hate and racism. I was asked by a prominent muslim leader to sign a letter requesting charges be dropped. I agreed on condition the group apologize for their behavior. They showed zero remorse.

TOM GROSS: DISPATCHES…

“Relax, Lieberman won’t bomb Egypt… He’s a pragmatist and he’s harmless”
100 years on, the Islamic State, Al-Qaeda, Jon Stewart and Joe Biden all agree…
Aryeh’s violin: The Improbable Happiness of Israelis (& Turkish brawl as MPs beat up Kurds)
How British leftists omitted Jews from the list of Holocaust victims

“Relax, Lieberman won’t bomb Egypt… He’s a pragmatist and he’s harmless”I attach several articles concerning the agreement in Israel to bring the Yisrael Beiteinu party into the governing coalition, and appoint its leader, Avigdor Lieberman, as defense minister.

Delegitimizing Israel in Our Classrooms Ziva Dahl

The New York Times Upfront magazine, distributed by paid subscription to approximately 1 million American 8th to 12th graders, recently included an article, “How the Middle East Got that Way.” Author Joseph Berger, former Times reporter, blames the Sykes-Picot Agreement of 1916 for the current mess in the Middle East.

In his view, “a century ago, two diplomats carved out lines on the Middle East map, creating new nations and sowing the seeds for much of the strife in the region today.”

Referring to the Arab-Israeli conflict, Berger tells students, “Most Arabs opposed the Zionist movement, which called for a Jewish state in Palestine. But world pressure to create a Jewish homeland increased after World War II… because 6 million Jews were murdered in the Holocaust.”

The article emphasizes that Western imperialism created the Arab-Israeli conflict because Sykes (British) and Picot (French) disregarded the wishes and rights of the indigenous Arab population and, Berger writes, “Arab leaders were angry” and “felt betrayed.”

The article continues, “In 1947, Britain, with approval from the United Nations, came up with a partition plan (to) create the nations of Israel and Palestine…. The Palestinians and surrounding Arab countries rejected it… (and) fought an unsuccessful war…. In the 1967 Six-Day War, Israel expanded territory…by capturing lands where many Palestinians were living…. The occupied Palestinians continue to demand a state of their own.”

Reading this description of historical events, young students, with little pre-existing knowledge about the topic, have no idea why the Jews would want a nation-state in the Middle East, which Berger characterizes as “Arab.” The author portrays the Arabs as victims of Western domination, legitimizing their 1948 rejection of a Jewish state and their subsequent war against newly declared Israel.

Neither the article nor the teacher’s guide or handouts mention the 3,000-year historical connection of the Jews to the area, the continuous Jewish presence in this land, the Jewish immigration to their historic homeland in the late 19th and early 20th century or the promise made to the Jews for a national homeland in Palestine in the 1917 Balfour Declaration. Also lacking is information about the 1922 League of Nations’ Mandate for Palestine to create a Jewish national home in today’s Israel, the “West Bank” and Sinai and the UN’s assumption of that international legal commitment.

The article’s failure to provide historical and legal context for the Jewish presence in the Middle East and the establishment of the Jewish state delegitimizes the creation of Israel. The Jews are made to look like foreign colonialists taking Arab land — the false narrative promoted by Arabs and Western progressives.

Michael Cutler Moment: Memorial Day and Celebrating the First Amendment

This special edition of The Glazov Gang presents The Michael Cutler Moment with Michael Cutler, a former Senior INS Special Agent.

Mr. Cutler discussed Memorial Day and Celebrating the First Amendment, unveiling the best way we can give respect to our fallen heroes – and reunite our splintered nation.

Don’t miss it!http://jamieglazov.com/2016/05/24/michael-cutler-moment-memorial-day-and-celebrating-the-first-amendment/

HIS SAY: ON TRUMP BY VICTOR DAVIS HANSON

FROM Hillary Agonistes Facing a free-wheeling Trump, she is weighted down by tons of baggage. By Victor Davis Hanson **** posted below

“Trump is many things. But he is not the fascist that neo-cons now rail against (their warnings of constitutional usurpation ironically far better apply to the concrete record of the last eight years, in which Obama has simply suspended enforcement of federal law whenever he found it politically convenient to do so, and either has turned government agencies — IRS, ICE, EPA, NSA, VA, NASA, the Secret Service — into rogue extensions of the White House or staffed them with partisan incompetents). In truth, Trump has no delineated agenda, nor is he doctrinaire in the fashion of a 20th-century European demagogue. Instead, his message is unscripted bombast, and it runs on emotion, not ideology, geared not to some grand autocratic vision but to how to stay ahead of the 24-hour news cycle and channel and exploit the venom Americans feel for Washington elites. Trump has tossed a ball and chain into the wide screen of the political establishment and shattered the glass. No one — not his 16 former Republican rivals nor Hillary Clinton — knows quite how to handle him, since he can say or do anything on any given day that no other candidate would even contemplate.

Older than Clinton, Trump comes across as far more vigorous and vital; he’s a loudmouth, but his voice is not shrill and screeching as is Clinton’s; his political incorrectness both offends and attracts, while her political correctness merely bores and has rendered her a caricature of an opportunistic toady. A wheeler-dealer roguish businessman, Trump is not yet facing criminal indictment; a lifelong government apparatchik, Clinton is courting a rendezvous with the law. Clinton still fakes regional accents; oddly, the orange-haired, combed-over Trump never does. When Trump is caught lying he often just shrugs and says without shame that he has changed his opinions; when Clinton is caught lying, she denies the lying and usually attacks the questioner. In the end, Trump makes it appear that hosting The Apprentice leads to far better political instincts than Yale Law School and the subsequent establishment CV.”

Hillary- The Default Candidate By Rich Lowry —

Hillary Clinton may be the weakest prohibitive favorite ever to run for the presidency.

She is generally given strong odds of beating Donald Trump in the fall, yet she is tied with him in the early going as she struggles to shake a 74-year-old socialist who persists in notching victories in the Democratic primary contest.

Armed with an impeccable résumé and pedigree, and an impressive campaign and fundraising apparatus, Hillary has it all — except a rationale for her campaign and the ability to excite voters.

The latter failing is made all the more striking by what has happened all around Clinton this year. She is bracketed in her own party and the opposing party by candidates who routinely draw crowds numbering in the thousands. Who are vivid and unmistakably themselves. Who have memorable catchphrases that capture their core message in a few words. Who are running crusades as much as campaigns.

If Donald Trump wants to make America great again, Hillary wants to keep it okay; if Bernie Sanders wants to incite a political revolution, Hillary wants to convene a task force to come up with options short of a revolution, to be studied closely for a decision at a later date. In an election season buffeted by gale-force winds of change, Clinton is the status quo rendered in the most stultifying, conventional fashion possible.

Hillary is hated without being interesting. Yes, the Republicans nominated a radioactive candidate, but only after a great upheaval forged by a highly entertaining figure who upset all prior conventions and norms. The Democrats are nominating an equally radioactive presidential candidate as the “safe” alternative of their establishment.

WATCH: College Kids Pledge Hundreds for Hamas to Bomb Israeli Schools and Cafés By Ericka Andersen

http://www.nationalreview.com/node/435734/print

Political satirist and video maker Ami Horowitz recently visited the campus of Portland State University, posing as a member of Hamas. He asked students to donate to the terrorist organization to help bomb schools, cafés, and other “soft targets” that would help destroy Israel.

Shockingly, Horowitz raised several hundred dollars from students who agreed that Israel needs to be “wiped off the map.” Here’s the unbelievable video: