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Showing posts with label Capital. Show all posts
Showing posts with label Capital. Show all posts

Sunday, February 2, 2014

Capital Punishment for Traffic Violations


William Norman Grigg

There are times when a jester is a prophet who uses comedy as a delivery vehicle for dangerous truths. Perhaps that?s what happened decades ago when Steve Martin, in one of his stand-up routines, suggested that the crime rate could be radically reduced if we imposed the death penalty for traffic violations.

That bit of ironic whimsy is now official policy for many police departments, where traffic stops for failure to wear a seat belt or other trivial violations can quickly escalate to the use of deadly force.

Last May, Florida resident Marlon Brown was pursued by a police officer who saw that he wasn?t wearing a seat belt. After reaching a dead end, Brown left the car and fled on foot. By that time, three police vehicles were on his tail. Two of the officers stopped after Brown left his vehicle. Officer James Harris continued his pursuit in a grass lot, eventually running over the terrified man.

The city of DeLand pilfered $550,000 from local tax victims to pay off Brown?s family, while refusing to admit wrongdoing. The State Attorney for FLorida?s 7th Judicial District, R.J. Larizza, declined to file charges. A grand jury, acting on the principle of qualified immunity for state-licensed killers, refused to indict Harris.

Last Thursday, a distracted driving violation led to the execution-style shooting of a 40-year-old driver in a residential neighborhood. Jose Navarro, who was with a female passenger, was allegedly seen talking on a cell phone by a police officer, who gave pursuit. Navarro, who had outstanding warrants, refused to stop, and an hour-long chase ensued.

Police claim that the vehicle was ?linked? to a shooting earlier in the week, and that the driver ? his car?s tires destroyed, and surrounded by police ? raised a weapon, thereby justifying a prolonged fusillade by at least four officers. Retired LAPD Detective Tim Williams expressed concerns about the shooting, pointing out that the onslaught endangered the lives not only of fellow officers, but innocent bystanders.

?They could have told him to get out of the car, but it looks like they just unloaded on him,? one eyewitness commented to ABC News.

Navarro, who barely survived the shooting, is now on life support. Whatever Navarro?s transgressions, it?s worth noting that he ? unlike the heroic defenders of public decency who shot him ? acted to protect an innocent non-combatant: Shortly after the chase began he stopped to let his passenger out of the car. If he hadn?t done so, she most likely would be dead.

For their part, the officers saw nothing improper about opening fire in a crowded neighborhood without so much as ordering Navarro out of his vehicle. One young girl, who was awakened by the gunfire, told a local ABC affiliate, ?I looked out my window and I saw the cops leaning on my dad?s car and they were shooting at [Navarro's] car.?

About ten years after Steve Martin decanted his line about capital punishment for traffic infractions, Russian expatriate comic Yakov Smirnov explained that the difference between Soviet and American police officers could be summarized in two words: ?Warning shots.?

?I like how American police fire warning shots to stop a fugitive,? Smirnov said in a standup routine circa 1984. ?In Russia, the police simply shoot the guy, and say that?s a warning to everybody else.?

Thirty years later, Smirnov?s gibe is obsolete ? not merely because the Soviet Union is long dead, but also because America?s ?local? police have become thoroughly Sovietized.


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Sunday, October 2, 2011

Is Gold No Longer A Safe Haven? Not According To Capital Economics: "Gold Will Surge When Euro Crisis Escalates"


[...] ? The recent sharp falls in the dollar price of gold have led some to question its status as a refuge from problems elsewhere, especially now that the US currency is strengthening across the board. However, if (or when) there is a further escalation in the crisis in the euro-zone, gold prices are still likely to surge against the dollar too.

? The price of an ounce of gold has now fallen by more than $200 from the record nominal highs above $1,900 seen earlier in the month. Since Tuesday alone, gold is down more than $100. As the price of traditionally riskier assets such as equities and industrial commodities have also fallen sharply over this period, it is tempting to conclude that gold has become another casualty of the "risk-off" trade.

? Despite this, we continue to expect gold to rise above $2,000 this year and to at least $2,500 no later than 2013. The fundamentals that support gold's status as a safe haven have not of course changed in the last few days. Above all, its value does not depend on the creditworthiness of any government or financial institution, and that may yet prove very significant in the weeks and months ahead.

? What's more, with gold prices now at previously unprecedented levels, the absolute size of daily moves are likely to be larger -- both up and down. Despite the recent falls, the gold price is still nearly $100 higher than at the start of August.

? Finally, the recent fall in the dollar price of gold primarily reflects a return of a degree of confidence in the US currency, which may not be sustained. The price in euro terms, for example, has held up a little better, which is what matters more for European investors seeking protection from the crisis in the euro-zone. (See Chart 1.) Other things being equal, a stronger dollar does imply a lower gold price when measured in dollars. This is partly because of the simple pricing effect which applies to any commodity, whereby purchasers in other currencies can afford to pay a higher price in dollars when the dollar is weak. But gold is also seen as a close substitute for the dollar as a store of value, so if there are doubts about the prospects for the US currency, gold tends to benefit disproportionately.

? The reverse appears to have happened recently. Crucially, the markets have moved on from the dispute over the US debt ceiling and the loss of the AAA rating (with S&P). The Fed's reluctance to adopt further quantitative easing has also allowed the dollar to regain some of its own safe haven status.

? Nonetheless, in the event of a disorderly Greek default, and particularly if fears of a break-up of the euro-zone really take hold, gold is still likely to benefit more than any other currency even if the dollar proves to be the best of the rest. In part this is because the upside for gold is not constrained by broader economic and policy considerations, whereas the value of the dollar (and of other national currencies such as the yen and sterling) clearly is. Confidence in the dollar is also likely to be undermined again by the fall-out from fresh euro-zone shocks on the US economy and banks. Indeed, since the global crisis began there have been several periods when the dollar has generally been strengthening and yet the price of gold in dollar terms has risen further, such as the second quarter of 2010 when concerns about Greece took off. (See Chart 2.) Although gold prices are now much higher, there is no good reason to rule out a repeat out-performance if the crisis in the euro-zone takes an even more sinister turn.[...]

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"Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened..." - Winston Churchill


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