The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating. In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.” Dagong made headlines last week when it became the first rating agency to cut its U.S. credit rating from “A+” to “A” after policymakers in Washington failed to act in a timely manner to lift its debt celing…[sic]

The administration of this web log strongly encourages readers to click upon the hyperlinks noted above to read this article in detail.

It is this blogger’s opinion that although the American economy is in a rather precarious position as of the time of this writing, the one attribute most notable about said economy is her ability to recover and thrive even after a significant downturn. How the American economy and the United States dollar will fare moving forward remains to be seen, but it is clear that many in Asia monitor such developments closely as economic conditions in the United States can have implications for the Asia-Pacific region, the so-called BRICS countries, and the Association of Southeast Asian Nations (ASEAN).

In news directly pertaining to the Kingdom of Thailand and the Association of Southeast Asian Nations (ASEAN), it recently came to this blogger’s attention that officials in Thailand are attempting to provide ASEAN exposure to Thai small and medium sized businesses. To provide further information it is necessary to quote directly from the official website of the Bangkok Post, BangkokPost.com

The Thailand Plaza programme to help local small businesses gain exposure abroad needs a fresh focus with more showrooms in Asean countries, according to the Office of Small and Medium Enterprises Promotion (Osmep). The programme that originated during the Thaksin Shinawatra government focused on developed Western countries but the results were poor. The first plaza in the United States folded as the cost of maintaining the office was too high. Thailand Plazas, with a budget of 100 billion baht, are seen as having potential to become a key marketing channel for Thai small and medium enterprises (SMEs) to gain access to Asean countries. Yuthasak Supasorn, the Osmep director-general, said partners of Thai SMEs could also order products via Thailand Plaza outlets in each country.

This blogger asks readers to click upon the relevant hyperlinks noted above to read this article in detail.

As the jurisdictions which comprise the ASEAN community continue to expand economically it stands to reason that intra-ASEAN trade will be facilitated by programs like the aforementioned one noted in the quotation above. How the scheme above will ultimately be implemented remains to be seen, but clearly there is reason to believe that a program such as this could be beneficial for both ASEAN jurisdictions outside of Thailand and the overall Thai business community.

For information related to legal services in Southeast Asia please see: Legal.

BIRMINGHAM, Alabama — The U.S. Justice Department today filed a lawsuit challenging Alabama’s new immigration law, which is slated to go into effect next month. In its lawsuit, the Justice Department says Alabama’s law unconstitutionally interferes with the federal government’s authority over immigration. “To put it in terms we relate to here in Alabama, you can only have one quarterback in a football game. In immigration, the federal government is the quarterback,” said Joyce White Vance, the U.S. Attorney for the Northern District of Alabama. Justice Department lawyers write in the lawsuit that the department is filing the action “to declare invalid and preliminarily and permanently enjoin the enforcement of various provisions” of the state law, according to the lawsuit filed in U.S. District Court in Birmingham this afternoon. Provisions within the state’s immigration law “are preempted by federal law and therefore violate the Supremacy Clause of the United States Constitution…”

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Frequent readers of this blog may have noted that this blogger has rather strong feelings regarding inherent States’ Rights and the inherent prerogatives which are reserved to State sovereigns notwithstanding the enumerated powers of the federal government pursuant to the United States Constitution. That stated, American immigration is one of the relatively few fields in which Congress has virtually monopolistic power regarding the imposition of laws, rules, and regulations. This is due to the fact that immigration falls into the jurisdiction of Congressional and executive plenary power. Therefore, it is little wonder that this recent case was filed since the Alabama law would seem to be operating in violation of that aforementioned plenary power. How this case will ultimately be resolved remains to be seen, but clearly issues pertaining to US immigration can be dramatic in a political context.

Of further interest to those who find the information above to be noteworthy, it recently came to this blogger’s attention that the American Congress seems to be attempting to create some sort of extra-Constitutional body for legislative purposes. To provide further elucidation regarding these developments it is necessary to quote directly from the official website of the Huffington Post, HuffingtonPost.com

This “Super Congress,” composed of members of both chambers and both parties, isn’t mentioned anywhere in the Constitution, but would be granted extraordinary new powers. Under a plan put forth by Senate Minority Leader Mitch McConnell (R-Ky.) and his counterpart Majority Leader Harry Reid (D-Nev.), legislation to lift the debt ceiling would be accompanied by the creation of a 12-member panel made up of 12 lawmakers — six from each chamber and six from each party. Legislation approved by the Super Congress — which some on Capitol Hill are calling the “super committee” — would then be fast-tracked through both chambers, where it couldn’t be amended by simple, regular lawmakers, who’d have the ability only to cast an up or down vote. With the weight of both leaderships behind it, a product originated by the Super Congress would have a strong chance of moving through the little Congress and quickly becoming law. A Super Congress would be less accountable than the system that exists today, and would find it easier to strip the public of popular benefits. Negotiators are currently considering cutting the mortgage deduction and tax credits for retirement savings, for instance, extremely popular policies that would be difficult to slice up using the traditional legislative process…

This blogger asks that readers click on the appropriate hyperlinks above to read this article in detail.

This blogger would argue that this proposed so-called “Super Congress” is a prima facie violation of the United States Constitution since there is no explicit reference to such an institution within the text of the Constitution itself and because Congress cannot delegate their lawmaking function to this institution per the doctrine of nondelegation. As noted in the quotation above, under the proposed scheme “rank and file” Representatives and Senators would not be able to make amendments or changes to proposed legislation emanating from this questionably Constitutional body, but would be required to vote “yes” or “no” only. This blogger would not have a Constitutionality issue with the proposed scheme if it were proposed as an Amendment to the Constitution and not as a statute since, again, the Nondelegation precludes such a transfer of power and therefore any law passed pursuant to this scheme may not be in compliance with notions of due process of law in American jurisprudence since there is a specific Constitutional framework for enacting legislation which does not include a “Super Congress”. For those who wish to understand this issue through the prism of analogy there are certain parallels between the argument that this scheme violates the Nondelegation doctrine and the argument that the so-called federal “line item veto” violated the Presentment Clause of the American Constitution. The future circumstances of this scheme have yet to unfold, but clearly there are many legal aspects of this plan which could face challenge down the road.

– Benjamin Walter Hart

For information pertaining to legal services in Southeast Asia please see: Legal.

Rep. James Clyburn and a group of House Democrats are urging President Barack Obama to invoke the 14th Amendment to raise the debt ceiling if Congress can’t come up with a satisfactory plan before the Tuesday deadline. Clyburn, the third-ranking House Democrat, said Wednesday that if the president is delivered a bill to raise the debt ceiling for only a short period of time, he should instead veto it and turn to the phrase in the Constitution that says the validity of the U.S. government’s debt “shall not be questioned…”

The administration of this blog strongly encourages readers to click upon the relevant hyperlinks noted above to read this fascinating article in detail.

An interesting facet of the quotation cited above is the fact that political obfuscation seems to be in use in order to misdirect the public from the glaring logical disparity between the notion of an American President unilaterally raising the American debt ceiling and the clearly delineated separation of powers in the Constitution (the separation between the powers of the executive, legislative, and judicial branches) which explicitly rejects such a notion. Furthermore, some commentators have noted that Congress has explicitly set a debt ceiling thereby manifesting their political will with regard to the raising of American debt. To provide further insight it is necessary to quote directly from the Financial Times website, FT.com:

If there is no increase in the debt ceiling by August 2, then the Treasury will not have enough money to meet all its commitments without borrowing more money, which it will not be able to do without breaking a wartime law from 1917 that created the debt ceiling.

This blogger asks readers to click upon the relevant hyperlinks above to read this article in detail.  Further relevant insight is found by quoting directly from the aforementioned section of the 14th Amendment which is posted upon the Wikipedia website, Wikipedia.org:

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States…

This blogger asks readers to click upon the relevant hyperlinks noted above to read about the 14th Amendment and its history in detail.

The important phrase in the above citation is “authorized by law”. To provide illumination regarding the importance of this phrase it is necessary to understand how American law is made. In order for a law to be enacted in the United States it must be passed by the United States House of Representatives and the United States Senate before being placed upon the desk of the American President for either signature (which denotes enactment) or veto (which can result in the overall defeat of a proposed bill). Should the President veto a piece of proposed legislation then that piece of legislation can overcome said veto only if the House and Senate vote by a 2/3 majority to enact said legislation. Nowhere has it ever been noted that the American President may unilaterally impose debt upon the American public without authorization from the peoples’ representatives in the body of the United States Congress. In fact Article 1, Section 8 of the United States Constitution vests exclusive authority to raise debt in the Congress, to quote directly from the enumerated powers of the United States Constitution as noted on the Wikipedia website Wikipedia.org:

The Congress shall have power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow Money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

To establish a uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current coin of the United States;

To establish Post Offices and post Roads;

To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

To constitute Tribunals inferior to the supreme Court;

To define and punish Piracies and Felonies committed on the high Seas, and Offenses against the Law of Nations;

To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;

To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;

To provide and maintain a Navy;

To make Rules for the Government and Regulation of the land and naval Forces;

To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;

To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;

To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings;—And

To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

The administration of this web log asks readers to click upon the relevant hyperlinks noted above to read more about these powers.

Clearly, Congress is the only branch of the American government with the enumerated power to authorize the borrowing of funds in the name of the American People. Therefore, the notion that a President taking such action unilaterally and without the approval of Congress is spurious, fallacious, and downright dangerous as it goes against the plain language of the enumerated powers noted in the provisions of the Constitution itself. Here is an interesting further point to ponder: could the unilateral action of a President which raises the debt level of the United States, notwithstanding Congressional refusal to do so, be construed to be a “debt or obligation incurred in aid of insurrection or rebellion against the United States” since said action would expressly contradict the will of the Congress (as manifested in the form of the debt ceiling itself) which, pursuant to the provisions of Article 1, Section 8 of the United States Constitution, has the exclusive authority “To borrow Money on the credit of the United States”? It is a rather subtle point, but an interesting one nonetheless.

Issues pertaining to the American debt ceiling can, as noted in previous postings on this web log, have an impact upon Consular Processing since every US Embassy, US Consulate, or American Mission abroad could face closure in the face of a US government shutdown that could arise as a result of a failure to reach an agreement regarding the American debt ceiling. There is a theoretical possibility that the United States Citizenship and Immigration Service (USCIS) could remain open despite a Government Shutdown since that agency is self-funded. However, such a development remains to be seen. That stated, in order to overcome this obstacle American legislators need to engage in a good faith negotiation regarding the US debt. Using specious arguments to propose questionably legal activities serves no good purpose since such activity could result adverse circumstances for all concerned.

–Benjamin Walter Hart

For information related to legal services in Southeast Asia please see: Legal.