Question of the Week
State rights are at risk: the last two major Supreme Court rulings on Obamacare and same-sex marriage prove that. Self-determination is fading quickly and will have vast implications. What do you think needs to be done in order for the States to be able to re-claim their rights and choose what they believe is best for themselves individually?
Today, however, the Court takes the extraordinary step of ordering every State to license and recognize same-sex marriage. Many people will rejoice at this decision, and I begrudge none their celebration. But for those who believe in a government of laws, not of men, the majority's approach is deeply disheartening. Supporters of same-sex marriage have achieved considerable success persuading their fellow citizens-through the democratic process-to adopt their view. That ends today. Five lawyers have closed the debate and enacted their own vision of marriage as a matter of constitutional law. Stealing this issue from the people will for many cast a cloud over same-sex marriage, making a dramatic social change that is much more difficult to accept.
Chief Justice Roberts' Dissent
Maybe it was a 'Hail Mary' for Justice Roberts' dissent in the same-sex decision. However, make no mistake, the hallmark of his Supreme Court dissent is about activism and following the trend of popular opinion rather than delivering clear interpretations of the Constitution, even when such decisions may not be palatable to the public or rising tide.
The Chief Justice is wrong about the same sex-marriage (SSM) decision making life harder or adding more challenges that are more difficult for anyone, except those who are opposed.
More importantly, considering the creative manner in which Roberts bailed on Obamacare (twice), it's like "Pot, meet kettle."
Last Friday's 5-4 ruling on same-sex marriage seems not only to be predicated on changing attitudes, but it's also an effort by the court to expedite those attitudes. Based on the surge in the acceptance of same-sex marriage over the past two decades, social opinion probably didn't need a lot more nudging. Yet on the other hand, based on religious beliefs, there are voices that must be protected.
However, this will not spark a civil war, but it should spark a civil understanding of all people's desires, faiths, and goals of their best lives. The other big losers are states' rights where self-determination is fading quickly and popular opinion within the state doesn't matter. There are times when the federal government should come to the rescue to keep citizens safe; however, we are witnessing a complete usurpation of state self-determination.
If the current trends hold liberal opinions, this could be the underlying force beyond the ballot box.
So, the role of the Supreme Court has changed and activism is its primary role, which means pop culture, tastemakers, and influential politicians could decide future cases. If someone like Elizabeth Warren can gain traction, could she at some point de facto direct the highest court in the land to become a partner in her war on business?
Michigan vs. EPA
The Supreme Court will have to decide if the Environmental Protection Agency's (EPA) goal of even furthering mercury reduction has results in the rules that are simply too draconian and too expensive to justify.
In short, both sides (more or less) agree on the numbers. The EPA says it's worth hammering the coal industry with a $9.6 billion annual price tab… And to make sure we save up to $6.0 million in potential lost incomes.
EPA | Michigan |
The EPA says the mercury intake by future mothers' results in their children having lower IQs. Their math says the impact is a 0.009 lower IQ. Using calculations from the Department of Education says each lost point of IQ results in lower annual incomes up to $1,958. At face value, this means the EPA at face value is saying its actions will save $6,000,000 in total annual savings. | The coal industry has calculated the cost of retrofitting and eliminating more mercury; it will result in a $9,600,000,000 hit to the economy. |
Recently, the EPA said the numbers don't matter, it's about principle; but just in case they add the retrofitting of these plants, it would have a massive human and economic impact by curbing particulate matter.
- 11,000 Premature deaths
- 4,700 Nonfatal heart attacks
- 540,000 Days or work lost to asthma
- $37 to $90 billion
There's been so much damage to the coal industry; a victory would be almost moral and provide only a drop in the bucket. On the other hand, the Clean Air Act (CAA) has become like Thor's hammer, giving the President an all-powerful weapon that may be used beyond the coal industry.
In general, industry and capitalism starts this week under greater danger than last Monday. That's not good for any American… regardless of your race, sexual orientation, or opinions on flags and monuments.
Europe's Achilles Heel & America's Black Swan?
Friday, Alexis Tsipras announced parliament would vote on a referendum that would allow the Greek citizens to vote on the next move in its never-ending saga.
The voting happens on July 5th and the default happens on July 1st.
The creditors are not amused and seem determined not to put any more cash in this game until Greece puts more skin into the game; a lot more skin.
The Greek Prime Minister, an advocate of the so-called game theory, seems to be in disarray. In the meantime, the spigot is being cut off. The Emergency Liquidity Assistance (ELA) program operated by European Union (EU) central banks, but overseen by the European Central Bank (ECB) is being shut off, which means no money for Greek banks, which will not open this week in order to avoid a run by desperate citizens.
Our market will be hit hard this morning since the unthinkable a week ago is becoming a reality. Greece will go into a technical default with the International Monetary Fund (IMF) tomorrow, and it is being cut off by its European creditors.
Today's Session
As anticipated, the major indices indicated lower this morning. We have tons of economic data coming out this week, but good or bad, they will do little to sway the market. According to Reuters, the people of Greece are being forced to withdraw no more than 60 euros per day from ATM machines, however, the value of the Euro has plummeted and is certainly not enough to support a family.