Late last year, we posed several questions to Banco Popular President and CEO Richard Carrion, in conjunction…
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Puerto Rico: Lingering Questions for Banco Popular’s Richard Carrion

Late last year, we posed several questions to Banco Popular President and CEO Richard Carrion, in conjunction with his appearance as a witness during a Congressional hearing on Puerto Rico’s public debt.

Our questions centered mainly upon his recent emergence as a staunch advocate of a unilateral restructuring of Puerto Rico’s debt, a bizarrely anti-lender stance for the head of the  Island’s largest bank.  Among our questions, we asked how Carrion’s bank had avoided the severe exposure to Puerto Rican debt experienced by the Island’s other lenders and citizens, and why Popular – a private sector leader by any definition – has been so reluctant to align with other private sector actors in negotiating a consensual debt solution between Puerto Rico and its lenders.

Needless…[more]

February 09, 2016 • 09:53 pm

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Chuck Hagel as Defense Secretary: The Best Conservatives Can Hope For? Print
By Ashton Ellis
Wednesday, December 19 2012
It may be more prudent to let the Republicans on the Senate Armed Services Committee...put Hagel on the record about his principles as Defense Secretary.

This week the White House let the press know that President Barack Obama is considering Chuck Hagel, the former Republican Senator from Nebraska, to be the next Secretary of Defense.  The trial balloon touched off an interesting debate among conservatives and libertarians about whether to support the choice. 

The Cato Institute, a libertarian think tank, is cheering on Obama to pick Hagel because of the Vietnam veteran’s skepticism over foreign interventions, and openness to “paring down” the Pentagon’s budget. 

In a speech to the non-partisan Atlantic Council which he currently leads, Hagel argued for more use of so-called “soft power” in foreign relations, such as a greater emphasis on engagement through diplomacy. 

Hagel’s principles may make him appealing to the Ron Paul wing of the Republican Party, who would like to see less military involvement in foreign affairs, and a unilateral reduction in federal spending.

But some others on the Right aren’t nearly so excited.  The Washington Free Beacon quotes William Kristol of the Weekly Standard as saying, “If Chuck Hagel has his way, Iran will get nuclear weapons and Israel will be thrown under the bus.”  Kristol was referencing Hagel’s past statements in favor of unconditional direct negotiations with Iran, and a tougher line on Israel’s relationship with Palestinians. 

Kristol and others raise some good points about Hagel that should be examined in more detail.  A future Defense Secretary should be made to articulate his understanding of America’s role in the Middle East; especially his stance toward Israel, the United States’ most consistent ally in the region.  That’s what Senate confirmation hearings are for.  But if nominated, hopefully Hagel will also get a chance to elaborate on a statement he made last year in an interview posted by the Council on Foreign Relations:

“Our Defense Department budget, it is not a jobs program.  It’s not an economic development program for my state or any district.”

Hagel is right on this point.  National defense spending should be premised on securing Americans’ safety, not necessarily on creating American jobs.  Defense spending is still the government spending taxpayer money, so if the primary justification for a Pentagon budget item is that it creates jobs or otherwise economically stimulates a specific region or industry, fiscal conservatives should be wary. 

Newt Gingrich is fond of saying that there’s enough waste and missed efficiencies in the Pentagon’s budget to turn it into a “Triangle” without jeopardizing America’s security posture.  Whether the real shape is a triangle or a square, it’s likely that any major deal on long-term spending reforms will have to include some reduced share of federal tax receipts going to the Defense Department. 

The question is how much.  During his first term, President Obama sliced $500 billion out of the military’s budget.  If the federal government goes over the fiscal cliff this January, the automatic spending cuts poised to hit the Defense Department are estimated to total another $500 billion.  While $1 trillion in cuts in less than four years would certainly trim at least one of the Pentagon’s corners, it’s hard to imagine that there is $1 trillion in wasteful or inefficient spending to pare down in such a short timeframe. 

All of which brings us back to a possible Hagel nomination.  Conservatives who resist the idea of Hagel as Defense Secretary might want to consider what scuttling his nomination would produce in the way of an alternative.  U.S. Ambassador Susan Rice’s proposed nomination to be the new Secretary of State crashed on the shoals of the Benghazi scandal.  Her replacement might be Massachusetts Senator John Kerry.  If Hagel goes down without a chance at confirmation hearings, is it likely President Obama will nominate someone more conservative? 

It may be more prudent to let the Republicans on the Senate Armed Services Committee – John McCain (R-AZ) chief among them – put Hagel on the record about his principles as Defense Secretary.  While conservatives might not like everything he says, it’s almost certain that another nominee would be even worse. 

Question of the Week   
Which one of the following individuals is considered the architect of South Carolina’s (“First in the South”) presidential primary?
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Quote of the Day   
 
"President Barack Obama's former director of the Defense Intelligence Agency (DIA) believes Hillary Clinton should drop out of the presidential race to clear the way for the probe of her private email server by the Federal Bureau of Investigation. In an exclusive interview with The Daily Caller News Foundation, Lt. Gen. Michael T. Flynn (Ret.) said he thought the former Secretary of State should leave…[more]
 
 
—Richard Pollock, The Daily Caller
— Richard Pollock, The Daily Caller
 
Liberty Poll   

Of the 8 remaining Republican presidential candidates, which one is your current choice for the nomination?