RUTHFULLY YOURS

The central bank needs to try something different—and has serious options to get median income rising.

Last week’s dismal jobs report for September will throw an indecisive Federal Reserve deeper into paralysis. For months the central bank hinted that it would end its near-zero interest rate policy, before backing down amid fears of soft growth and opposition from the International Monetary Fund and World Bank. That leaves Fed officials with no plan, as worrying economic news mounts.

After seven years of emergency policies, it is vital that the Fed try something new. If not a rate increase, it should consider other growth-oriented options: tapering its huge bond reinvestment program to free up collateral for credit markets; shifting some of its borrowing away from banks to encourage bank lending; or shortening the maturity of its bond portfolio to relieve some of the illiquidity in bond markets.

Carly Fiorina took the stage at the 2005 Consumer Electronics Show in Las Vegas to introduce a new camera from Hewlett-Packard Co., joined by singer Gwen Stefani, who shot a selfie with the beaming chief executive.

“I can’t believe I’m on stage with this woman,” said Ms. Stefani, who was introduced by Ms. Fiorina as H-P ’s “hippest product engineer” for the singer’s help designing the camera’s case and accessories.
The moment celebrated a marriage of technology and popular culture that Ms. Fiorina had cultivated through 5½ years at the helm of H-P. “What is our ambition for 2005? To be at the intersection of simplicity, innovation, personalization at affordable mass-market prices,” she told the crowd.

Ms. Fiorina wasn’t around long enough to see the camera ship to stores. She was fired a month later by the H-P board of directors.

As Ms. Fiorina campaigns for the Republican Party nomination, she presents her tenure at H-P from July 1999 to February 2005 as evidence of a business-based competence she would bring to the White House.

Interviews with former employees and board members, as well as an examination of H-P’s financial performance during that period—which included a $25 billion deal to acquire Compaq Computer Corp.—suggest Ms. Fiorina’s vision and marketing talent overshadowed her ability to deliver results.

“Carly is a brilliant sales person, and she did an exquisitely good job of selling the Compaq merger to a cynical market,” said George Keyworth, a former H-P board member. “But what she could not do was execute.”

H-P’s stock price fell 55% on Ms. Fiorina’s watch, more than peers in the technology industry, even those hammered by the 2001 downturn. Dell Inc.’s stock dropped 5% over the same period; Cisco Systems Inc. ’s fell 45%; IBM dropped 31%. The Nasdaq Composite Index fell by 27%.

Sometimes, distance is good for perspective. For Angela Merkel, that perspective came in New York.

The week before last, the German chancellor flew to the Big Apple to address the United Nations summit on sustainability, women’s rights and climate change. But what she took home with her was the surprising realization that Horst Seehofer actually has a lot in common with Ahmet Davutoglu and Nawaz Sharif.

Seehofer is the governor of Bavaria and the head of the conservative Christian Social Union (CSU), the sister party to Merkel’s Christian Democratic Union (CDU); Davutoglu is the prime minister of Turkey; Sharif the prime minister of Pakistan. All three have recently conveyed the same message: Merkel must get tougher in the refugee crisis.

Davutoglu asked Merkel in New York for her support for a buffer zone along the Syrian-Turkish border, where anywhere between 100,000 and 300,000 refugees from the civil-war torn country are to be accommodated. Sharif, for his part, engaged the chancellor about the escalating situation in his country and in neighboring Afghanistan. He demanded that the chancellor send Pakistani refugees back home.

Anyone who doubts the power of prayer should consider the power of Jewish prayer on the Temple Mount, the Jerusalem hill where the First and Second Temples of ancient Israel once stood. It’s still a Jewish world, at least from the Indus to the Atlantic; everyone else just lives in it. That in what an extraterrestrial observer would conclude from the hysteria over a modest Jewish presence on the site.

A Palestinian law student last week murdered a young Israeli father and a local rabbi in Jerusalem’s Old City last week, the killer’s father declared: “He defended the honor of 1.5 billion Muslims all over the world,” according to the Washington Post. The murderer, Mohannad Halabi, also wounded the man’s wife and infant daughter, and killed a local rabbi who came to the family’s aid.

Halabi had written on his Facebook page, “What’s happening to our holy places, what’s happening to our mothers and sisters in al-Aqsa mosque? We are not the people who accept humiliation. Our people will revolt.” The killer’s father, Shafeek Halabi, declared “I am so proud of him” for having defended Muslim honor. Self-styled “guardians” of the Temple Mount have stockpiled stones and firecrackers in the al-Aqsa Mosque itself to throw at Jewish visitors as well as Israeli police, who have arrested violent protesters on several occasions in recent months.

No-one wants to talk about anything except the US elections, and there is nothing sensible to say about them. The Republican Party of better days, of entrepreneurship and energetic defense, seems to have been kidnapped by space aliens and replaced by Pod People. The aliens have kidnapped not just the party apparatus, but the party base as well. What do the Republicans want? The operative answer is “none of the above,” namely a candidate without a verifiable track record–a Donald Trump, a Ben Carson, a Carly Fiorina.

According to the Pew Institute, 65% of Republicans in September preferred “new ideas and a different approach” to “experience and a proven record.”

President Obama’s “Uncle Omar” lived in the US illegally for years and was arrested for DUI, but avoided punishment and received a legal driver’s license.

What has been traditionally used to identify American motorists has now become about as useful to police as an empty holster. For example, California’s Department of Motor Vehicles (DMV) surge in giving driver’s licenses to more than 1.5 million illegal immigrants — a/k/a undocumented immigrants in current Golden State “newspeak” — is disturbing to many law enforcement officers. Police officials are very concerned with this policy, so much so that a homeland security newsletter began covering what many believe is just one more magnet for drawing illegal immigrants to the United States from terrorist havens throughout the world.

In January 2015, California began allowing undocumented immigrants to obtain the same driver’s licenses as legal immigrants and citizens. Police officers claim that there are tens of thousands of immigrants who stand on long lines at DMV centers throughout the state and their licenses not only allow them to drive vehicles but also double as identification for conducting many personal and business transactions.

Memo to the State Department: It’s time to think twice about knee-jerk criticism of Israel. You never know when it might turn around and bite you.

Just that happened when Associated Press reporter Matt Lee caught deputy State spokesman Mark Toner by surprise at a briefing this week. Lee asked about Saturday’s US bombing of a hospital in Kunduz, Afghanistan, that left 22 patients and staff dead.

The administration has called the attack a tragic mistake. But Lee recalled Israel’s August 2014 shelling of a UN school in Gaza — which State immediately labeled “disgraceful,” adding: “The suspicion that militants are operating nearby does not justify strikes that put at risk the lives of so many innocent civilians.”

Jerusalem’s Jewish connection dates back more than 3,000 years. Even after Jews lost control of the city in 70 CE, a Jewish spiritual and physical bond with Jerusalem remained unbroken, despite 2,000 years of dispersion.

Although Islamic dynasties controlled Jerusalem for some 1,300 years, they never once made it the capital of an Arab state. Even Jordan, which controlled part of the city for 19 years, until 1967, refrained from making it its capital. Furthermore, Jerusalem is never mentioned in the Quran, Islam’s most holy book.

Following in Yasser Arafat’s footsteps, Palestinian leader Mahmoud Abbas used an international stage to unleash yet another round of terror attacks against Israel.

As international criticism against his personal corruption mounted, Arafat used the conclusion of the Camp David meeting on July 25, 2000, to launch the Second Intifada. Earlier that month, Imad Faluji the Palestinian Authority’s communications minister

told a PLO rally in the Ein Hilwe refugee camp in South Lebanon, that as part of that plan all the PLO “military action groups of the 1960s 1970s and 1980s are returning to work to escalate the fighting against Israel.”

His predecessor Abbas, used his speech at U.N. General Assembly on September 30, 2015, in which he declared his intention to unilaterally establish a Palestinian state, thus abandoning the Oslo Accord, to instigate escalation in the deadly attacks against Jews in the West Bank, Jerusalem and even among Israeli Arabs. Abbas probably hopes that the violence and political chaos would mask Hamas harsh criticism against him and his government.

Saudi Arabia recently invited the leader of the Muslim Brotherhood to an event sponsored by the Kingdom in Riyadh, in a signal that the country’s government may be trying to bury the hatchet with the Islamist group. Reuters reports:

Sheikh Youssef al-Qaradawi, a Qatar-based cleric whose fiery sermons have strained ties with Gulf neighbors, appeared alongside the Qatari prime minister and the Saudi ambassador at an event in Doha to celebrate Saudi Arabia’s national day.

The accession to the Saudi throne in January of King Salman, who is more sympathetic to religious conservatives than his predecessor King Abdullah, caused glimmers of hope among Muslim Brotherhood exiles in Qatar that the Middle East’s political winds had started to shift in their favor, potentially giving the Islamist group more space to act.
Salman, while stopping short of befriending the Brotherhood, has worked to reduce tensions with the movement’s own allies, strengthening Riyadh’s ties with Turkey and Qatar and reaching out to Islah, the Islamist group’s offshoot in Yemen.