Commentary Magazine


Topic: Greece

Eurozone Unemployment Crisis

Whatever the U.S. unemployment figures turn out to be on Friday, they will be far better than what the eurozone—the 17 countries that use the euro currency—released today. The eurozone economy is contracting, which is to say it’s in recession, and the overall unemployment is a dismal 12 percent, up from 11.9 percent last month.

But the spread among the 17 countries is far, far wider than among the 50 American states. Unemployment is a mere 4.8 percent in Austria and 5.4 percent in neighboring, but far larger Germany. Both figures are much better than U.S. unemployment, which is at 7.7 percent. Germany and Austria are adding jobs, not shedding them like the rest of the zone. That includes jobs in manufacturing, an economic sector that is bleeding jobs elsewhere. The purchasing manager activity index, a measure of manufacturing strength, dropped sharply last month to 46.8 from 47.9 the month before. Anything less than 50 is an indication of economic contraction.

Read More

Former Maoists Stalk Dutch Election

Like bees swarming to a honey pot, Europe’s extremist parties have wasted no time in seizing upon the Eurozone crisis to garner an electoral boost. In Greece, back in June, an assortment of unreconstructed communist and neo-Nazi parties won 101 out of 300 possible seats in the election. Next week, it’s the turn of the comparatively sensible (and far more prosperous) Dutch to decide whether they want a government based on prudence, or one based on protest.

Although a small majority of Greeks opted, at the very last moment, for a center-right coalition, political debate in the run-up to their election was dominated by talk of an extremist victory. That has also been the case in The Netherlands. For weeks, the Dutch press has been ruminating on the likelihood that the far left Socialist Party will triumph on September 12.

Read More

More Turk Bias Against Greeks, Armenians

The White House continues to talk about Turkey not only as a regional ally but also as a model for reform in the Middle East. It has been several years, however, since Turkish reforms contributed to democracy.

The latest case in point is Turkish real estate reform. The Turkish government has announced new regulations. Here is the rub: While the government has removed onerous rules and regulations that made navigating Turkish real estate a nightmare, the government has in effect legislated its traditional hatreds.

Armenians, for example, need not apply. They are by law unable to own housing or businesses in Turkey. Greeks have it better. They are merely banned from purchasing houses or stores in Istanbul and coastal provinces. Such discrimination is rooted in Turkish historical animus. During World War I, Ottoman forces killed perhaps one million Armenians. Much of the world recognizes their death as a deliberate genocide, albeit one Turkish officials dispute to this day. Less well known was the ethnic cleansing of Greeks and Christians from Istanbul and the Aegean provinces of Turkey although, to be fair, the transfer of populations went both ways.

Read More

Do the Rich Pay Their Fair Share of Taxes?

I must admit I’ve never understood the concept that some people would be excused from paying zero taxes and so would be completely disinvested in the system. I doubt I’m alone in favoring a far simpler tax code or my unease at the government’s willingness to push social or random political agendas through taxation. I doubt I am alone among residents of Montgomery County, Maryland, when I avoid shopping at local outlets and instead head to more consumer-friendly locations in Virginia. I can save 60 cents (!) a gallon simply by driving 15 minutes to Fairfax, Virginia. When it comes to tax burden, a new posting from my colleague Mark Perry offers some damning statistics:

We hear all the time that the “rich don’t pay their fair share of taxes” (123,000 Google search results for that phrase). Here’s an analysis using recent IRS data that suggests otherwise.

1. In 2009, the top 400 taxpayers based on Adjusted Gross Income earned $81 billion as a group, and paid $16.1 billion in federal income taxes (see chart).

2. In 2009, the bottom 50% of taxpayers, a group totaling 69 million, earned collectively more than $1 trillion and paid $19.5 billion in federal income taxes (see chart).

Read More

Economic Shoes Are Dropping

If the stock market is truly a leading indicator (and it tends to be one of the more reliable ones), then the Obama campaign had better start worrying. May has been a brutal month for the Dow. It closed May 1 at 13,279. As it approached noon today, it’s at 12,360, down 59 on the day. That’s a decline of 7.1 percent for the month, wiping out all the gains since Jan. 1.

The reasons, of course, are not hard to find: the crisis in Europe, lackluster economic data in general, a sharp drop in consumer confidence in May, an uptick in weekly jobless claims, and more.

Perhaps the biggest news is the drop in bond rates. The benchmark ten-year treasury bond is currently yielding 1.53 percent. On July 1 last year, the ten-year treasury was yielding 3.2 percent, more than twice as much. This is good news and bad news. The good news is that the federal government can finance its huge deficits more easily (and consumers can borrow more cheaply as well: mortgage rates are at near record lows). But the bad news is that bond yields go down for two reasons: a slowing economy and/or a financial crisis. As nervous investors seek safe haven, demand for treasuries rises, pushing down yields. (French and German bond rates are also very low for the same reason, yielding 2.35 percent and an astonishing 1.24 percent respectively.)

Read More

And You Think We’ve Got Troubles . . .

Two articles in today’s New York Times show just how much trouble Japan is in economically. On the front page is an article on how young Japanese are finding it increasingly difficult to find a good job. Only 56.7 percent of college students have a firm job offer when they graduate, an all-time low.

An aging population is clogging the nation’s economy with the vested interests of older generations, young people and social experts warn, making an already hierarchical society even more rigid and conservative. The result is that Japan is holding back and marginalizing its youth at a time when it actually needs them to help create the new products, companies and industries that a mature economy requires to grow.

With a population that is actually falling in numbers, a very low birth rate, virtually no immigration, and an ever-increasing life expectancy, Japan is a demographic time bomb as the average age of the population steadily increases. There are more and more recipients of old-age pensions and medical care and fewer and fewer young workers to fund them.

And Standard and Poor’s has lowered Japan’s credit rating, down to AA-. That’s three steps below the top grade of AAA. China has the same rating, but China is growing rapidly, and its debt is only about 15 percent of GDP. Japan’s debt this year will reach 203 percent. (The debt/GDP ratio of Greece last year when it nearly defaulted and had to be rescued by the European Union was 137 percent.)

Of all the major economic powers, Japan is by far in the worst shape, and its politicians seem unable to take the tough steps necessary to turn things around. It’s hard to imagine that only 25 years ago, there was a spate of chin-pulling books and articles on how Japan was poised to become the world’s leading economy.

LIVE BLOG: Limited Government or Greece

Ryan’s speech lays down the choice for America: embrace limited government or face the fate of Greece.

Morning Commentary

So how’s that “reset” with Russia going? Turns out the U.S.’s light criticism of Mikhail Khodorkovsky’s six-year prison sentence last week did little to faze the Kremlin. Russian police arrested 130 protesters during a New Year’s Eve demonstration against the Khodorkovsky verdict and the country’s prohibition of free assembly.

Greece and the state of California have two things in common — spiraling debt and an unwillingness to take responsibility for it. According to Victor Davis Hanson, it’s no coincidence that both populations can’t stop railing against “them” — the others who apparently created the financial messes Greece and California now face. Writes Hanson: “Oz is over with and the Greeks are furious at ‘them.’ Furious in the sense that everyone must be blamed except themselves. So they protest and demonstrate that they do not wish to stop borrowing money to sustain a lifestyle that they have not earned—but do not wish to cut ties either with their EU beneficiaries and go it alone as in the 1970s. So they rage against reality.”

Over at the Wall Street Journal, Jamie Kirchick calls out Julian Assange for leaking information that has served only to weaken our democracy-supporting allies, such as Zimbabwe Prime Minister Morgan Tsvangirai: “Which leads us back to WikiLeaks and Mr. Assange, who lacks any appreciation for the subtleties of international statecraft, many of which are not at all devious. If Mr. Assange were genuinely committed to democracy, as he claims, he would reveal the minutes of Mr. Mugabe’s war cabinet, or the private musings of the Chinese Politburo that has sustained the Zimbabwean dictator for over three decades.”

Is Obama now cribbing speech tips from the National Review? Bill Kristol has the scoop on the president’s sudden appreciation for American exceptionalism.

With a new year comes a whole host of brand new state laws you may have already unwittingly broken. If you’re from California, check out Mark Hemingway’s post at the Washington Examiner — he has saved you the time of going through the Golden State’s 725 new laws by highlighting the ones that will probably irk you the most.

The incoming Republican chair of the House Oversight and Government Reform Committee, Rep. Darrell Issa, told Ed Henry on CNN yesterday that he won’t investigate whether President Obama offered Joe Sestak a position in the administration in exchange for dropping out of the Democratic Senate primary in Pennsylvania last year: “That’s — it was wrong if it was done in the Bush administration. It’s wrong in the Obama administration. But remember, the focus of our committee has always been, and you look at all the work I’ve done over the past four years on the oversight committee; it has been consistently about looking for waste, fraud and abuse. That’s the vast majority of what we do,” Issa told Henry. Issa had previously called the Sestak incident “Obama’s Watergate” and said that the Obama administration may have committed “up to three felonies” by making the deal.

The EU’s Black-and-White World

In Wednesday’s post, I wrote that the European Union seems set to repeat its Cyprus error with the Palestinians. But perhaps that’s unsurprising. For in both cases, willful disregard of the evidence has subverted its policies.

In Cyprus, the EU effectively killed a peace plan by promising accession to Greek Cyprus regardless of the outcome of an April 2004 referendum, but to Turkish Cyprus only if both sides voted yes. Unsurprisingly, since Greeks had nothing to lose by holding out for more, 75 percent voted no, while Turks, having something to lose, voted yes. Indeed, Greek Cypriot President Tassos Papadopoulos openly opposed the plan, telling his countrymen they could get a better deal; so did the largest Greek Cypriot political party.

Subsequently, then-enlargement commissioner Gunter Verheugen accused Greek Cypriot leaders of “cheating” their way into the EU: they vowed support for reunification until accession was assured, then reversed course. But why did Europe deem their promises credible enough to justify sacrificing the accession card?

After all, evidence to the contrary wasn’t lacking. For instance, the Greeks refused to sign an earlier draft of the plan in December 2002 but were nevertheless offered membership later that month. They rejected another version in February 2003, yet the EU made no effort to postpone that April’s signing of the accession treaty, which made accession unstoppable. Indeed, Greek leaders repeatedly demanded more than the plan offered, while polls showed most Greeks opposing the requisite concessions.

The answer is that Europe viewed Cyprus in black and white: since Turkish Cyprus was created by Turkey’s 1974 invasion, it deemed Turkish Cypriots the villainous “occupiers” and Greek Cypriots the victims. Never mind that Turkey invaded in response to a war Greek Cypriots started by staging a coup, with backing from Athens, to create an all-Greek government and merge the island with Greece. Or that Greek Cypriots’ history of oppressing Turkish Cypriots gave the latter good reason to fear the coup and beg Ankara’s assistance, and Ankara good reason to intervene to protect them. Or that the war made thousands on both sides refugees.

Then, having assigned its roles, the EU simply assumed that the victims would “support peace” while the villains would oppose it, regardless of actual behavior. Thus in March 2004, while Papadopoulos and his Turkish Cypriot counterpart were both denouncing the plan’s latest draft, Verheugen still blamed Turkish Cyprus alone for the failed talks.

The Israeli-Palestinian parallels are obvious. Here, too, Europe ignores the fact that Israel conquered the territories in a defensive war, or that every previous Israeli withdrawal has exacerbated anti-Israel terror. It ignores repeated polls (see here and here) showing that Palestinians oppose two states if one of them remains Jewish. It ignores “moderate” Palestinian leaders’ unrelenting insistence on relocating all Palestinian “refugees” to Israel (here and here for instance), their claims that the Western Wall isn’t Jewish, their demand for judenrein territory. It even ignores their rejection of Israeli statehood offers in 2000, 2001, and 2008. Hence its growing support for recognizing “Palestine” without an agreement, thus killing any chance for negotiations.

The EU has decided that Israelis are villainous, peace-hating “occupiers” and Palestinians are peace-loving victims. And never mind the facts.

Palestinian Authority: 10 EU States to Approve Palestinian Embassies

Palestinian Authority chief negotiator Saeb Erekat claimed yesterday that 10 European Union states have decided to upgrade their PLO missions to embassy status. He didn’t specify which countries had allegedly agreed to this (though some foreign publications have recently tossed out the names France, Spain, Greece, and Portugal as possibilities):

Around 10 EU countries are set to upgrade the status of Palestinian representative offices in their capitals in the near future, chief Palestinian Authority negotiator Saeb Erekat declared on Sunday.

This would mean that Palestinian missions would move a step closer toward becoming embassies whose officials enjoy full diplomatic immunity. … A PA official told The Jerusalem Post that the decision to seek international recognition of a Palestinian state was designed to shift the conflict from one over ‘occupied Palestinian territories’ to one over an “occupied state with defined borders.”

There’s an air of believability to Erekat’s claim in light of Norway’s recent approval of a Palestinian embassy, but I have to admit I’m still a bit skeptical, especially since the names of the countries aren’t mentioned. For one thing, unlike the EU states, Norway isn’t a member of the Quartet that brokers peace negotiations between Israel and the Palestinian territories. Would EU members really want to risk the semblance of neutrality by taking steps toward the unilateral validation of Palestinian statehood? And less than a week after the EU definitively rejected Erekat’s call to recognize Palestine as a country?

Supposing Erekat’s assertion is accurate, this move seems to be more symbolic than practical: for the EU member states, it’s a way to show solidarity with the Palestinians, while delivering a public jab at Israel over settlement construction. For the Palestinian Authority, it’s pretty much a PR move, designed to build momentum for a possible UN Security Council vote on Palestinian statehood, as well as an easy way to get the words “Israeli occupation” peppered into the news cycle.

But that doesn’t mean it wouldn’t have some problematic consequences for the Israeli-Palestinian negotiations. As David Frum pointed out yesterday, this type of unilateral approach to Palestinian statehood serves only to delay the peace process:

From the beginning of the Obama administration, PA President Mahmoud Abbas has refused to negotiate directly with Israel. Indirect discussions have stumbled along without result. Abbas has insisted he cannot talk without a settlement freeze. Then when he gets his settlement freeze, he explains he still cannot talk.

The beauty of the UN approach is that it provides a perfect excuse never to talk to Israel again.

The UN approach may never achieve anything. It may leave the Palestinian people stuck in a frustrating status quo. But anything is better than a deal that would require a Palestinian leader to acknowledge the permanence of Israel. Back in 2000, Yasser Arafat told Bill Clinton that signing a treaty with Israel would cost Arafat his life. Abbas seems to have reached the same conclusion.

Of course, obstructing the peace process with Israel may be exactly what Erekat is hoping for. The PA official recently wrote a column in the Guardian calling for Israel to recognize the Palestinian “right of return,” so, clearly, a two-state solution isn’t even on his radar.

Flotsam and Jetsam

More European nations in trouble. “The debt crisis in Europe escalated sharply Friday as investors dumped Spanish and Portuguese bonds in panicked selling, substantially heightening the prospect that one or both countries may need to join troubled Ireland and Greece in soliciting international bailouts.”

More evidence that the IRS is targeting the hawkish pro-Israel group Z Street. Wouldn’t it be front-page news if J Street were asked if it supported Iran sanctions?

More reason to doubt that the Obami have a clue about what to do about North Korea. The State Department’s PJ Crowley tweets “SecClinton talked with Chinese FM Yang today and encouraged Beijing to make clear that North Korea’s behavior is unacceptable.” Is “unacceptable” really the strongest they can do? Or is “unacceptable” (as in “A nuclear-armed Iran is unacceptable”) just diplomat-speak for “We’re sorry to see X happen.”

More criticism of Obama’s approach to Egypt. “The president and his secretary of state have brought up democracy and human rights in private conversations with Egyptian leaders but shied away from them in public. They have failed to make any connection between Mr. Mubarak’s domestic repression and the more than $1 billion in U.S. aid Egypt receives every year, much of it directed to the military. They have not supported efforts in Congress to pass legislation or even nonbinding resolutions linking bilateral relations to political reform.”

More defensiveness from Sarah Palin. Not helpful for a presidential contender. Dead-on for a conservative community organizer.

More nonsense from Tom Friedman. No, Tom, too much texting by American kids is not a bigger problem than North Korean nukes. Another example of not-very-smart liberal punditry.

More problems for Rahm Emanuel. “Through an odd chain of events, Mr. Halpin, a 59-year-old industrial real-estate developer here, has become the face of a movement to force Mr. Emanuel out of the race to become Chicago’s next mayor. A lawsuit filed with the Chicago Board of Election Commissions Friday by a Chicago attorney on behalf of two city residents charges that Mr. Emanuel, the former chief of staff to President Barack Obama, is ineligible to run because he lost his Chicago residency when he rented his home to Mr. Halpin in 2009.” Really, wasn’t the entire race an excuse to get off the sinking White House ship?

More evidence that the GM bailout was no success for the taxpayers. The union? Well, that’s another story. “General Motors Co.’s recent stock offering was staged to start paying back the government for its $50 billion bailout, but one group made out much better than the taxpayers or other investors: the company’s union. Thanks to a generous share of GM stock obtained in the company’s 2009 bankruptcy settlement, the United Auto Workers is well on its way to recouping the billions of dollars GM owed it — putting it far ahead of taxpayers who have recouped only about 30 percent of their investment and further still ahead of investors in the old GM who have received nothing.”

RE: A Bad Deal All Around

Jennifer and Evelyn, between them, have covered pretty comprehensively the problems with latest settlement-freeze deal. I note, however, that the generally left-leaning Economist picked up on the aspect of the deal that concerns me the most and isn’t getting a lot of attention. Jennifer alludes to it with this passage:

And as for the promise to veto UN resolutions attacking Israel or declaring a Palestinian state, why should Israel have to give anything to Obama for simply adhering to past U.S. policy? My Israel guru remarks, “This shows the Obama mentality that we veto as a difficult favor for Israel, rather than out of principle.”

The Economist is blunter: “Is America bribing Bibi or blackmailing him?” One problem with the Obama administration’s action is that it can so easily be read as blackmail. It’s basic diplomatic competence to avoid creating such implications if they are unintended.

Independent of nations or circumstances, the U.S. posture should, on principle, oppose the peremptory creation of new nations against the will of UN member states. Making this principle conditional, for transient bargaining purposes, is a grave strategic error. A number of our own allies have ethnic-nationalist insurgencies, border disputes, or both – nations like Spain, Greece, Turkey, and Japan. Russia, China, and India have them as well. They are able to deal with their problems as ongoing but relatively minor nuisances largely because the momentum of global expectations is with the principles of national sovereignty and order.

The Obama deal offered to Israel contains too broad a hint that America’s commitment to those principles might be conditional. Perhaps Team Obama sees Israel as a case so special that nothing done in relation to it has meaning for the principles of international relations. But the rest of the world’s nations don’t share that view – nor do their insurgencies or their respective border antagonists. What they see is the trend of actions by the United States. This is a destabilizing move and a very ill-advised one.

Running on Empty

It is rare to have an election where the governing party is not (a) running on its record (six months after voting for ObamaCare, no Democrat advertises his vote), (b) promising to push the rest of its agenda (even a Congress with lopsided Democratic majorities did not enact card check and cap-and-trade), or (c) willing to risk a pre-election vote on its signature plan (tax increases for “the rich”). Five weeks before the election, the party is out of gas.

You can see this in California, where the Republican candidates for governor and senator are both first-time candidates and ex-CEOs (Meg Whitman and Carly Fiorina) running against two of the state’s most famous Democrats (Jerry Brown and Barbara Boxer) in races currently too close to call. In his TV ad, Jerry Brown looks straight at the camera and tells voters:

I’m Jerry Brown. California needs major changes. We have to live within our means, we have to return power and decision-making to the local level, closer to the people. And no new taxes without voter approval.

The statement is barely distinguishable from what a Tea Partier might say.

The Democratic candidate for lieutenant governor is Gavin Newsom — the mayor of the City and County of San Francisco, the bluest of blue areas in a Blue State. Recently he had this to say about the “stimulus” that shoveled federal funds to the state for redistribution to members of public employee unions, while private unemployment in California continued to soar:

Look, I understand why people are fearful. I don’t like this spending more than anyone else … and trust me, I understand the stimulus as well or better than anybody.  I mean, [as] a mayor of a county … you really understand it.  It is not wrong to criticize parts of that stimulus as disproportionately saving jobs in the public sector and not stimulating private sector economic growth. That is not something that I am proud to say, as a Democrat; it’s not something I want to say; but it’s true and [something] I must say.

Newsom is in a statistical dead heat with his Republican opponent (Abel Maldonado); his first ad will accuse Maldonado of supporting “the biggest tax increase in California history.”

In a state that now resembles Greece more than the Golden State it once was, with a $19 billion budget deficit that a 2009 sales tax increase was supposed to cure (but that simply gave California the highest state sales tax in the United States), the Democrats have no agenda — at least not one that seeks to distinguish itself from the Tea Party.

Smackdown: Convoy vs. Flotilla

Perhaps the biggest recent news in Gaza-blockade busting is the lack of enthusiasm for it shown by some regional governments. Beirut delayed the departure of the Lebanese “women’s flotilla” flagship, M/V Maryam, for much of July. After Maryam was finally allowed to leave Lebanon, the authorities in Greek Cyprus, the staging point for Maryam to pick up additional passengers, denied the ship permission to depart for Gaza. The flotilla organizers have so far been unable to mount the effort by any other means. A separate aid ship departing from Syria this past weekend simply headed for the Egyptian port of El-Arish, near the Rafah border crossing from Egypt into Gaza, rather than attempting to break the naval blockade.

Three vehicle convoys are now preparing to converge on Gaza, but they, like the Syrian ship, will assemble near Rafah in Egypt. One convoy, arranged by the Hamas-linked Viva Palestina activist group, left from London this weekend. Departures are planned from Morocco and Qatar as well. Reporting suggests that the convoys from Europe and Africa will be composed largely of passenger vehicles, reinforcing their character as publicity stunts rather than humanitarian aid missions.

The convoy from Casablanca has already hit a snag, however, and some elements of it are currently delayed in Morocco. Algeria has granted permission to cross its territory only provisionally and unofficially, a posture that Moroccan factions consider unsatisfactory. The Egyptians, meanwhile, refused to allow a Viva Palestina convoy to use the Rafah border crossing in January 2010, deporting British activist George Galloway and banning him from further activities in Egypt. Cairo’s foreign ministry has reiterated the ban this week, emphasizing that aid-convoy vehicles will not be allowed to use the border crossing. Any cargo they bring will have to be reloaded on an Egyptian-managed official convoy.

The refusal of Greece and Egypt to collude in blockade-running attempts is encouraging. By making order a priority, they eliminate the convenience third-party territory represents for activists originating from Turkey, Syria, or Lebanon. Other European authorities could take a lesson from them.

An interesting development thousands of miles away merits a mention as well. The New Zealand-based organization Kia Ora Gaza, while fundraising at a university in Hamilton last week, was startled to encounter push-back against its vituperative anti-Israel appeal (“one non-Jewish student … described [it] as ‘hate-preaching’”). Kia Ora Gaza activists were reportedly “told by Iraqi and Iranian students that they ‘were playing straight into Hamas’s hands.’” After an hour of being challenged by attendees, the Kia Ora Gaza group cut its event short and left, having taken in very few donations (one attendee counted a total of three).

No single event should be regarded as definitive, of course, but the trend here is positive — and very different from the narrative adhered to by the mainstream media. At times it seems as though the only ones who don’t “get it,” when it comes to Hamas, Islamism, and the cause-célèbre of Gaza, are the Western leftist elites.

WEB EXCLUSIVE: Venezuela on the Brink

Venezuela goes to the polls on Sept. 26 in a parliamentary election that opponents of President Hugo Chavez see as “a chance to turn the tide,” as Reuters news service puts it. Chavez may be taking on more authoritarian powers, but he also has to defend what the latest data show is the worst economy in the world. And you thought the Democrats had problems!

The Economist magazine provides statistics weekly on 57 nations, from the United States to Estonia. Its most recent report forecasts that gross domestic product in Venezuela will decline by 5.5 percent in 2010. Next worst is Greece, with a 3.9 percent decline. Greece, of course, came close to defaulting on its debt earlier this year, and analysts at Morgan Stanley worry that Venezuela is moving in the same direction.

Click here to read the rest of this COMMENTARY Web Exclusive.

Can a Sacred Text Be Secular as Well?

The debate over the Ten Commandments is firing up again. Writing for the New York Times’s website earlier this week, veteran legal commentator Linda Greenhouse warns of “the continuing effort by state and local governments to post the Ten Commandments in public places,” as well as an upcoming attempt to overturn the Supreme Court’s 5-to-4 ruling of 2005 that barred the posting of the Ten Commandments before two Kentucky courthouses.

At the heart of these new legal efforts is a caviat written into Justice Souter’s 2005 decision that seems to open the door for such displays if they are intended for a secular purpose — a sentence that many people, Ms. Greenhouse writes, wrongfully took “as a green light for gaming the system.” The Court, Souter wrote, did not “have occasion here to hold that a sacred text can never be integrated constitutionally into a governmental display on the subject of law, or American history.” The problem is not in the Ten Commandments themselves, we learn, but in the real intentions behind putting them on display — whether they be “secular” or “sectarian.”

Like many Americans, Ms. Greenhouse bristles at such a loophole, mainly because of how hard it is for her to imagine the Bible representing anything other than religion. “The prospect of watching lawyers and justices engage in still more contorted efforts to attach supposedly secular meaning to obviously sectarian objects and texts,” she writes, “is not a pleasant one.”

But is this fair? Can’t the Ten Commandments — indeed, the Bible as a whole, with its thousand pages of ancient stories, speeches, poems, proverbs, laws, and histories — have secular meaning? Read More

China’s Naval Posture: More Good News

Iran’s best friends have wasted no time trading on their naval anti-piracy presence in the Gulf of Aden to penetrate the Mediterranean Sea. China rotated its anti-piracy task forces in July and sent the homebound flotilla to the Mediterranean for naval exercises and port visits. Although the Chinese navy has sent training ships on foreign cruises before, the Mediterranean circuit being followed by the off-station flotilla is the first deployment of its kind by operational warships.

The Chinese destroyer and frigate arrived in Egypt in late July for a five-day visit. They then conducted drills with the Italian navy last week and visited the NATO port of Taranto. The task force arrived in Piraeus, Greece, on Monday.

China’s not the only Asian nation dispatching its navy to the ports of America’s allies in the Mediterranean. Russia expanded its traditional ties there with an agreement earlier this year to conduct joint naval exercises with Greece. India’s navy conducted an unprecedented deployment to the Mediterranean and Atlantic in 2009, during which it operated with the navies of Russia, NATO, and Algeria.

The Chinese made ripples in naval circles this summer when they sent their largest warship, the amphibious assault vessel Kunlunshan, to the Gulf of Aden as the flagship of their current anti-piracy flotilla. It’s understating the case to point out that an amphibious assault ship is not the platform best suited to interdicting pirates; China’s choice in this case is a political test of what other nations will find acceptable. This isn’t the only attempt being mounted to upend the status quo, however. Japan is establishing a forward operating base in Djibouti, and a Chinese official has floated the idea of China doing the same. Iran started this trend in late 2008 with new base facilities in Eritrea on the Red Sea, ostensibly for its anti-piracy force off Somalia.

Nations don’t change their naval postures because they are content with the status quo. Nor are the world’s other navies focused on building smaller, less-capable warships for low-lethality tasks like combating piracy. The U.S. Navy’s retreat from the high seas since the end of the Cold War is having its inevitable consequences. Shedding our own most capable warships to save money, as Defense Secretary Bob Gates proposes, is the worst thing we could do.

David Axelrod’s Latest Spin

David Axelrod had a very bad morning on television. Let’s briefly consider why.

Barack Obama opposed California’s Proposition 8 at the time of the vote, Axelrod said, because it was “divisive” and “mean-spirited.” But Obama also opposes same-sex marriage, even thought that was exactly the purpose of Proposition 8 — to stop court-ordered same-sex marriage. Axelrod’s argument is simply incoherent. Nor can Mr. Axelrod explain why Obama — who insists that he embraces something called “pay-go” — won’t pay for tax cuts for families earning under $250,000 or won’t extend unemployment benefits. And Axelrod is apparently no longer content with blaming just George W. Bush and the Republicans for the lack of hiring by the private sector; the reason has to do with the “problems in Europe … and Greece.” Of course it does.

Everyone is to blame, you see, except the president. This appears to be the grand strategy that Obama and the Democrats are going to run on for the mid-term elections.

It turns out that this White House is unusually inept, both in the policies it pursues and in the arguments it advances.

Israel Needs to Face Facts About Turkey

Israel’s effort to adjust to the new reality of a hostile Islamist Turkey often seems like “one step forward, two steps back.” This week was a giant step back. Yet even so, progress has been made.

This week’s setback was Israel’s decision to participate in a UN probe of May’s raid on a Turkish-sponsored flotilla to Gaza. Several leading Israeli ministers said the decision was made partly “to restore ties with Turkey.” As one senior official put it, “Hopefully the combination of lifting the siege on the Gaza Strip and establishing an international investigation will meet the Turkish demands and lead to a restoration of ties.”

This is appeasement of the worst kind. In order to “restore ties” with a government that has made its hostility crystal-clear, Israel for the first time gave its imprimatur to an investigation by one of the world’s most anti-Israel bodies, which has never sought to probe similar incidents in other countries. That sets a dangerous precedent.

Even worse, this decision comes just days after Defense Minister Ehud Barak voiced concern over the new Turkish intelligence chief’s close ties with Iran. Noting that years of military cooperation had left many Israeli secrets in Turkish hands, he worried that Hakan Fidan might pass them to Tehran. What normal country seeks a closer relationship with a government it suspects of sharing its secrets with its worst enemy?

Yet in its soberer moments, the government has, with considerable success, begun reaching out to some of Turkey’s traditional opponents. Last month, Greek Prime Minister George Papandreou paid an official visit to Israel, becoming the first Greek leader to do so in over 30 years. And in May, the Greek and Israeli air forces conducted joint exercises over the Aegean Sea. Turkey used to be a major venue for such exercises, but lately, it has canceled them repeatedly. And these exercises are vital because they enable pilots to train over longer distances and different terrain than Israel offers.

Ties with Cyprus have also warmed. In May, for instance, Cyprus said it would stop letting Gaza-bound flotillas use its ports, and in June, the Free Gaza movement, which has organized several such flotillas, said this decision had forced it to relocate its headquarters from the island.

But Israel’s schizophrenic behavior is damaging — something even Foreign Ministry professionals, trained to favor diplomacy above all, have recognized. When Industry Minister Benjamin Ben-Eliezer met Turkey’s foreign minister in June in a bid to mend ties, one senior Foreign Ministry professional told Haaretz (Hebrew only):

The American government is giving Turkey the cold shoulder, Jewish organizations are boycotting it and the whole world is uncomfortable with Turkey’s behavior. Amid all this, we’re the ones who want to embrace them. So how will we be able to object to the world [doing the same] afterward?

This week’s decision shows the damage is only getting worse. It’s time for Jerusalem to face facts: as long as Recep Tayyip Erdogan is in power, Turkey will never again be an ally. Better to cut its losses and focus on building other more fruitful relationships.

The Economic and Budget Issue Brief: Read It and Weep

The CBO’s July 27 Economic and Budget Issue Brief, “Federal Debt and the Risk of a Fiscal Crisis,” is short (8 pages), accessible, and worth reading. It covers past and projected federal debt held by the public, some of the consequences of growing debt, the increased chance of a fiscal crisis (including a brief review of fiscal crises in Argentina, Ireland, and Greece), and how a fiscal crisis might affect the United States. Among the many interesting data points, you’ll find is this:

According to the Congressional Budget Office’s (CBO’s) projections, federal debt held by the public will stand at 62 percent of GDP at the end of fiscal year 2010, having risen from 36 percent at the end of fiscal year 2007, just before the recession began. In only one other period in U.S. history—during and shortly after World War II—has that figure exceeded 50 percent.

Read the whole thing — and weep. (h/t: Yuval Levin/NRO)