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The Daily Reckoning | Saturday, February 23, 2013 Flying murder bots above your house...for your safety... Readers weigh-in on the persistent debate over higher education... Plus, all the past week’s reckonings, archived for your private consumption... --------------------------------------------------------------- The Embarrassing FACT We Found on Page 210 of the White House Budget... On Page 210 of Obama’s latest budget, we found a fact that should embarrass... or enrage... every single American. It doesn’t matter if you’re a Republican or a Democrat. What exactly did we find? Click here to find out. Joel Bowman, checking in today from Buenos Aires... Ordinarily, we’re pretty lukewarm about the idea of signing petitions or casting any vote that doesn’t involve our own two feet. We’re fond of withdrawing consent as a means of protest, not engaging in sophomoric “rage against the machine” tactics. That’s why, on matters of public politics, we aim to stir up nothing but apathy. That said, there are certain issues that deserve our attention and, dare we say, yours too. The State’s use of drones is one of them. Not satisfied with deploying these flying murder bots abroad, the government is now heavily committed to programs that will see these things patrolling the skies high above your own backyard. In typical fashion, the government doesn’t want you to watch it watching you. “Trust us,” they say. “It’s for your own safety.” Skeptical? When Doug Hill, Director of the Laissez-Faire Club, asked us to jot down a few notes on the drone subject a week or so ago, we were only too happy to help out. The LFB folks have started an anti-drone petition, a link to which you can find below, to help spread awareness of the issue. Here’s what we sent to Mr. Hill... [Nota Bene: This week’s feature column was originally published in Laissez-Faire Today on Tuesday, February 19, 2013.] The Daily Reckoning Presents To Drone, or Not to Drone? By Joel Bowman Decent folk don’t need Dick Cheney to describe something as “a good policy” to know it’s probably a bad idea. But just in case they missed the point the first time around, the former VP was on television last week to hammer it home for them. In an interview with CBS This Morning, Cheney brushed aside calls for “checks and balances” against the Obama administration’s controversial drone program. “I think it’s a good program,” Cheney told the host. “I don’t disagree with the basic policy that the Obama administration has pursued in that regard.” Readers will recognize drones, or unmanned aerial vehicles (UAVs), as the weapon of choice used by Nobel Peace Prize recipients who wish to carry out extrajudicial assassinations of United States citizens abroad... and to lay bloody and horrific waste to hundreds of innocent children by raining missiles down on their heads from the high heavens. Never mind all that, grumbled Cheney. The president “is getting paid to make difficult, difficult decisions.” In sum, the man who told the world that invading US troops would be greeted in Iraq as “liberators” has assured us that it’s ok for another man, one who personally oversees a “kill list” before unleashing remote control murder machines abroad, to make tough military decisions on your behalf... because he is getting paid a lot of your dollars to do so. They just don’t want anyone to keep track of what they’re doing, is all. On that last point, members of both parties are paid t o be in conspicuous agreement. Are you feeling safer yet? Of course, as anyone with a spine well knows, it’s not making the “difficult, difficult decisions” that counts; it’s getting them right... or at least not murderously wrong, that’s important. Any scoundrel of the hoi oligoi can choose to, say, invade a foreign country on a false premise... or to bend at the waist every time a special interest group whispers the words “Blackwater” or “Monsanto” or “Unmanned Systems Caucus” softly in his ear. Indeed, moral malleability is practically a job requirement. And for the truly sociopathic, these decisions might even come easily, automatically... as if not a thought was given to their outcome or human consequence. As it turns out, Obama himself seems capable of understanding that, at least in certain cases, scorching poor, forsaken villages on the other side of the globe with AGM-114 Hellfire missiles is probably less than neighborly conduct. In fact, the “leader of the free world” said as much at press conference in Asia just last year. “...[T]here’s no country on Earth that would tolerate missiles raining down on its citizens from outside its borders,” the president solemnly declared. “So we are fully supportive,” he then added, “of Israel’s right to defend itself from missiles landing on people’s homes and workplaces and potentially killing civilians.” Mr. Obama might want to get out a map (here’s a helpful link, sir). His Weapons of Aerial Destruction are currently, as we type, cutting lines across the skies over (as least) Pakistan, Afghanistan, Yemen and Somalia. As far as we are aware, these are countries roughly located “on this earth.” If, as the president asserted, “Israel has every right to expect that it does not have missiles fired into its territory,” then what are we to make of the rights of those innocent people formerly living in the above mentioned areas, whose bloodied remains now stain the dirt whence they came? Is pre-meditated murder somehow less painful for the victims’ families if it is delivered by a RQ-1 Predator drone? Is it somehow less “murderous” if the act is carried out by a gutless bot wearing a US military uniform or in possession of a CIA clearance card? Do the bodies still count if the assassin answers to a chain of command that ends with the winner of the 2009 Nobel Peace Prize? The issue clearly appears to be a confusing one for Obama. “To drone, or not to drone?” Hmm... this must be what Cheney meant by “difficult, difficult decisions.” Unperturbed, the president marches to the age old Mantra of the Militarist: When in doubt, proceed! Since taking office, Obama has upped the ante on Bush’s UAV program, increasing total missions flown to date six fold. According to analysis conducted by the Bureau of Investigative Journalism (BIJ), current through January of this year, the Obama administration has executed at least 312 drone strikes, including a couple of operations carried out over Yemen on Christmas Eve which killed at least seven people. Observed blogger Kevin Gosztola at the time: There was no ceasefire from the Obama administration during the holiday. In fact, it appears they waited until Christmas Eve on purpose to conduct a couple strikes as there had not been action in the covert drone war in Yemen for well over a month. In earlier wars, there may have been some kind of a truce because most of the soldiers and their families would be celebrating Christmas, however, characteristic of drone warfare, the drone pilots who carried out the order to fire upon suspected militants were nowhere near the area of the strike. They were completely detached and, depending on where they were when they directed the flying killer robot to attack, they were likely able to go home and see their family on Christmas Eve. On the body count question, Obama’s “targeted killing” operations have so far resulted in the deaths of between 473 and 893 civilians in Pakistan. Of these victims, 176 were children. They had names like Syed Wali Shah, a seven year-old boy, and Maezol Khan, an eight year old girl. Between 1,270 and 1,433 innocent people were reported injured in the attacks. Of course, precise numbers are notoriously hard to come, due both to the nature of the strikes themselves and the bureaucratic opacity shrouding operations. This is especially true in Yemen and Somalia. In the former state, the BIJ estimates anywhere between 42 and 135 strikes carried out since 2002. Total death estimates range from 374 to 1,112 people. In their 2012 report, Living Under Drones, researchers at Stanford University found that, lo and behold, the tale served up to the American public with regards to the administration’s expanded drone program was, well... flawed. “In the United States, the dominant narrative about the use of drones in Pakistan is of a surgically precise and effective tool that makes the US safer by enabling ‘targeted killings’ of terrorists, with minimal downsides or collateral impacts. This narrative is false... “Publicly available evidence that the strikes have made the US safer overall is ambiguous at best,” says the report, adding that targeted killings and drone attacks undermine respect for international law. Is it any wonder then that the Cheneys and Obamas of the world would rather their heinous operation be kept under wraps, far from the prying eyes of the public and the dreaded “checks and balances” they might seek to impose? Needless to say, the families of slaughtered civilians in Pakistan and elsewhere know far more about the horrors of living under America’s predator drone program than do Americans themselves. Don’t feel left out though. If these criminals have their way, (and there is good reason to believe they will) their robots of death will be patrolling the skies over your backyard soon enough... if they aren’t already. Sincerely, Joel Bowman The Daily Reckoning’s Editor-at-Large [Ed. Note: When the last administration started the drone war almost 10 years ago, hardly anyone said anything. And then when the current administration continued and expanded it to target U.S. citizens abroad, the outcry a reasonable person might expect, didn't happen. Now we have drones patrolling our skies in North Dakota, keeping an eye on potential cow thieves. And the Dallas Police Department's SWAT team has a 50 lb. drone with the capability of carrying a 12 gauge shotgun or a 40 mm grenade launcher (though neither's been installed...yet). And just yesterday, there are reports of House Minority Leader, Nancy Pelosi, saying that the President doesn't have to disclose to the public when he targets and executes an American citizen with a drone. As she eloquently told the Huffington Post, "It just depends." As you probably know, the FAA has cleared the way for 30,000 drones to patrol American airspace, watching, recording and transmitting the images of your daily life back to some data storage facility. Leaving a record of your activities in your backyard, trips to soccer games with your kids and even walking your dog. This is not what we want from our government. I can only assume that you feel the same way. If you do then sign our petition and tell the White House, Congress and John Brennan we have seen enough of their drones.) NOTICE: You May Have a Credit Balance on Your Account According to our subscriber database, thousands of our customers have may have a credit balance. In fact, anyone who checks their balance today will automatically receive an upgrade credit of $2,044. Please use this link to learn how to redeem your credits: Agora Financial Subscriber Services — Unclaimed Credit ALSO THIS WEEK in The Daily Reckoning... RNA Interference’s Hot Partnership With Stem Cells By Severine Kirchner Stem cell therapy and RNA interference (RNAi) may be the sexiest hook-up since peanut butter and chocolate. And scientists are just beginning to explore the potential of combining these medical therapies. Until very recently, the application of each therapy seemed very specific and limited: stem cells for regenerative medicine; RNAi for genetic correction. Furthermore, the repairing abilities of stem cells seemed more limited than first expected, and RNAi proved very difficult to be delivered to its intended targets. A Natural Elixir...Good for What Ails Ya! By Patrick Cox Let me begin by saying that I don’t blame you if you are skeptical about what I’m going to tell you now. It took me six months to come to grips with the reality and the magnitude of this discovery, despite plenty of solid research from world-class scientists. Finally, I did two things. I talked to scientists at the Johns Hopkins Medical School and the Roskamp Institute, and I began taking the supplement and giving it to friends and family. The Coffee Can Portfolio By Chris Mayer “Have you ever heard of the coffee can portfolio?” I was having lunch with Preston Athey, the outstanding investor behind T. Rowe Price’s Small-Cap Value Fund (PRSVX), when he asked me this question. I had heard of it, which I think surprised him a little because I was only 12 years old when it came out, and it is not a mainstream idea. I knew all about it, though, because the coffee can portfolio is one of those classic ideas that aficionados of finance don’t forget. Trade Like a 16-Year Old By Douglas French In the book What I Learned Losing A Million Dollars, authors Jim Paul and Brendan Moynihan point out the emotional traps that lead to stock market losses — amplifying Ms. Fox’s wisdom. While individuals rarely feel invincible by themselves, when a crowd forms, people feel powerful. In the market, this means a crowd of opinion. You can be part of a crowd sitting by yourself in front of your computer screen. Watching the ticker symbols that you have a rooting interest in as they scroll by on CNBC, Fox Business, or Bloomberg can hypnotize you if you’re not careful. An Important Map and Your Chance to Cash In! Pictured below is a map many Americans have never seen. That’s a shame, because today it holds one of the best profit opportunities the market has to offer. Big Oil knows this map well — heck, it’s one of the reasons they always seem to turn a profit. Today, thanks to a little-known loophole, you could start grabbing your share of the payouts too. Consider it your chance to get a little payback at the pump — finally, right?! To see what I mean, click the map below... The Weekly Endnote... From the frying pan and into the fire...we move the ongoing debates here in the reader mail section from the nature of currencies to higher education. Is it a waste of time and money? Does the government have any business meddling in the affairs of students? Who is to blame for the $1 trillion plus in outstanding student loans? First up, Reckoner Wayne sets the tone... You forgot the most expensive war this country has fought and lost. The war on ignorance. Our citizens are locked in a building for 6-8 hours a day for thirteen years and only 65% emerge with a high school diploma here in my county. In Chicago only 55% of public school students get a diploma and those teachers went on strike to get a raise this past September. Sadly in Detroit only 35% get a diploma. We spend between $8,000 to $10,000 per student for each of those 13 years. The teachers and politicians say “We could fix this if we only had more money.” But they never mention how much we should spend to raise the graduation rates by even one percentage point. They also never mention what well-intentioned program we should take the money from. Some who do graduate go on to college and expect the taxpayers to pick up their additional cost of education and they protested having to pay for their education by camping out in major cities across this country. They spent more than they made for years and want someone to bail them out — a lesson they learned from their Uncle Sam. Next up, this one from Reckoner Ken... Thanks for spreading this much needed information. I’m no expert and I hate to come across as a curmudgeon, but the whole sordid mess strikes me as a government sponsored racket/boondoggle. Most decent people can empathize with the delinquency issues, but the government’s silence on the deferred loans is a disgrace. The government has no business lending money or guaranteeing debt, which is why it’s not in the Constitution. Here comes the curmudgeonly part... Many, if not most, liberal arts students today aren’t learning skills and practical knowledge which they can use in the private sector. They’re only fit for government jobs, and that’s the few who manage to actually graduate. I’m all for higher education, but it is an investment. According to your numbers, we can infer that for most wide-eyed young adults entering college today, it’s not a wise investment (at least not from a financial perspective). All told, it seems for every one successful college graduate, we have numerous others who are deeply in debt. What a waste of our resources. And finally, Reckoner B.G. from Denver, Colorado, writes in to say... Just a thought — about 10 years ago I was a technical documentation manager for a successful startup. I hired several non-degreed writers because they were smart, experienced, personable, etc. And, in all but one instance, I was disappointed. Turned out that the degree was a valid measure, not of intelligence or knowledge, but of focus. Most of my non-degreed writers could sponsor lunch outings, select great varieties of tea for sharing cups in their cubes, provide excellent movie reviews etc. etc. but they had a terrible time sitting alone and churning out well-organized user guides. One even had some kind of learning disability around writing — his spelling and grammar skills were kind of hit and miss but he was so smart and good looking that folks had covered for him in the past. Bottom line, what we’ve heard is true — higher education can be valid for screening purposes, if nothing else. DR: Ok, there it is. A new topic for a new discussion. Is higher education the cure all it’s hyped to be, or a distraction from the real issues at hand. And what role should the government be playing in this sector...if any? As always, we welcome your thoughts. Email them to the address below and... ..enjoy your weekend. 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