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KrisAnne Hall Reviews the National Defense Authorization Act

NATIONAL DEFENSE RESOURCES PREPAREDNESS

The White House

Office of the Press Secretary

For Immediate Release

March 16, 2012

Executive Order -- National Defense Resources Preparedness

EXECUTIVE ORDER

NATIONAL DEFENSE RESOURCES PREPAREDNESS

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), and section 301 of title 3, United States Code, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
PART I  -  PURPOSE, POLICY, AND IMPLEMENTATION
Section 101.  Purpose.  This order delegates authorities and addresses national defense resource policies and programs under the Defense Production Act of 1950, as amended (the "Act").
Sec. 102.  Policy.  The United States must have an industrial and technological base capable of meeting national defense requirements and capable of contributing to the technological superiority of its national defense equipment in peacetime and in times of national emergency.  The domestic industrial and technological base is the foundation for national defense preparedness.  The authorities provided in the Act shall be used to strengthen this base and to ensure it is capable of responding to the national defense needs of the United States.
Sec. 103.  General Functions.  Executive departments and agencies (agencies) responsible for plans and programs relating to national defense (as defined in section 801(j) of this order), or for resources and services needed to support such plans and programs, shall:
(a)  identify requirements for the full spectrum of emergencies, including essential military and civilian demand;
(b)  assess on an ongoing basis the capability of the domestic industrial and technological base to satisfy requirements in peacetime and times of national emergency, specifically evaluating the availability of the most critical resource and production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel;
(c)  be prepared, in the event of a potential threat to the security of the United States, to take actions necessary to ensure the availability of adequate resources and production capability, including services and critical technology, for national defense requirements;
(d)  improve the efficiency and responsiveness of the domestic industrial base to support national defense requirements; and
(e)  foster cooperation between the defense and commercial sectors for research and development and for acquisition of materials, services, components, and equipment to enhance industrial base efficiency and responsiveness.
Sec. 104.  Implementation.  (a)  The National Security Council and Homeland Security Council, in conjunction with the National Economic Council, shall serve as the integrated policymaking forum for consideration and formulation of national defense resource preparedness policy and shall make recommendations to the President on the use of authorities under the Act.

(b)  The Secretary of Homeland Security shall:

(1)  advise the President on issues of national defense resource preparedness and on the use of the authorities and functions delegated by this order;

(2)  provide for the central coordination of the plans and programs incident to authorities and functions delegated under this order, and provide guidance to agencies assigned functions under this order, developed in consultation with such agencies; and

(3)  report to the President periodically concerning all program activities conducted pursuant to this order.

(c)  The Defense Production Act Committee, described in section 701 of this order, shall:

(1)  in a manner consistent with section 2(b) of the Act, 50 U.S.C. App. 2062(b), advise the President through the Assistant to the President and National Security Advisor, the Assistant to the President for Homeland Security and Counterterrorism, and the Assistant to the President for Economic Policy on the effective use of the authorities under the Act; and

(2)  prepare and coordinate an annual report to the Congress pursuant to section 722(d) of the Act, 50 U.S.C. App. 2171(d).

(d)  The Secretary of Commerce, in cooperation with the Secretary of Defense, the Secretary of Homeland Security, and other agencies, shall:

(1)  analyze potential effects of national emergencies on actual production capability, taking into account the entire production system, including shortages of resources, and develop recommended preparedness measures to strengthen capabilities for production increases in national emergencies; and

(2)  perform industry analyses to assess capabilities of the industrial base to support the national defense, and develop policy recommendations to improve the international competitiveness of specific domestic industries and their abilities to meet national defense program needs.

PART II  -  PRIORITIES AND ALLOCATIONS
Sec. 201.  Priorities and Allocations Authorities.  (a)  The authority of the President conferred by section 101 of the Act, 50 U.S.C. App. 2071, to require acceptance and priority performance of contracts or orders (other than contracts of employment) to promote the national defense over performance of any other contracts or orders, and to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense, is delegated to the following agency heads:

(1)  the Secretary of Agriculture with respect to food resources, food resource facilities, livestock resources, veterinary resources, plant health resources, and the domestic distribution of farm equipment and commercial fertilizer;

(2)  the Secretary of Energy with respect to all forms of energy;

(3)  the Secretary of Health and Human Services with respect to health resources;

(4)  the Secretary of Transportation with respect to all forms of civil transportation;

(5)  the Secretary of Defense with respect to water resources; and

(6)  the Secretary of Commerce with respect to all other materials, services, and facilities, including construction materials.

(b)  The Secretary of each agency delegated authority under subsection (a) of this section (resource departments) shall plan for and issue regulations to prioritize and allocate resources and establish standards and procedures by which the authority shall be used to promote the national defense, under both emergency and non-emergency conditions.  Each Secretary shall authorize the heads of other agencies, as appropriate, to place priority ratings on contracts and orders for materials, services, and facilities needed in support of programs approved under section 202 of this order.
(c)  Each resource department shall act, as necessary and appropriate, upon requests for special priorities assistance, as defined by section 801(l) of this order, in a time frame consistent with the urgency of the need at hand.  In situations where there are competing program requirements for limited resources, the resource department shall consult with the Secretary who made the required determination under section 202 of this order.  Such Secretary shall coordinate with and identify for the resource department which program requirements to prioritize on the basis of operational urgency.  In situations involving more than one Secretary making such a required determination under section 202 of this order, the Secretaries shall coordinate with and identify for the resource department which program requirements should receive priority on the basis of operational urgency.
(d)  If agreement cannot be reached between two such Secretaries, then the issue shall be referred to the President through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism.
(e)  The Secretary of each resource department, when necessary, shall make the finding required under section 101(b) of the Act, 50 U.S.C. App. 2071(b).  This finding shall be submitted for the President's approval through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism.  Upon such approval, the Secretary of the resource department that made the finding may use the authority of section 101(a) of the Act, 50 U.S.C. App. 2071(a), to control the general distribution of any material (including applicable services) in the civilian market.
Sec. 202.  Determinations.  Except as provided in section 201(e) of this order, the authority delegated by section 201 of this order may be used only to support programs that have been determined in writing as necessary or appropriate to promote the national defense:

(a)  by the Secretary of Defense with respect to military production and construction, military assistance to foreign nations, military use of civil transportation, stockpiles managed by the Department of Defense, space, and directly related activities;

(b)  by the Secretary of Energy with respect to energy production and construction, distribution and use, and directly related activities; and

(c)  by the Secretary of Homeland Security with respect to all other national defense programs, including civil defense and continuity of Government.

Sec. 203.  Maximizing Domestic Energy Supplies.  The authorities of the President under section 101(c)(1) (2) of the Act, 50 U.S.C. App. 2071(c)(1) (2), are delegated to the Secretary of Commerce, with the exception that the authority to make findings that materials (including equipment), services, and facilities are critical and essential, as described in section 101(c)(2)(A) of the Act, 50 U.S.C. App. 2071(c)(2)(A), is delegated to the Secretary of Energy.
Sec. 204.  Chemical and Biological Warfare.  The authority of the President conferred by section 104(b) of the Act, 50 U.S.C. App. 2074(b), is delegated to the Secretary of Defense.  This authority may not be further delegated by the Secretary.
PART III  -  EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY
Sec. 301.  Loan Guarantees.  (a)  To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense, as defined in section 801(h) of this order, is authorized pursuant to section 301 of the Act, 50 U.S.C. App. 2091, to guarantee loans by private institutions.
(b)  Each guaranteeing agency is designated and authorized to:  (1) act as fiscal agent in the making of its own guarantee contracts and in otherwise carrying out the purposes of section 301 of the Act; and (2) contract with any Federal Reserve Bank to assist the agency in serving as fiscal agent.
(c)  Terms and conditions of guarantees under this authority shall be determined in consultation with the Secretary of the Treasury and the Director of the Office of Management and Budget (OMB).  The guaranteeing agency is authorized, following such consultation, to prescribe:  (1) either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with such guarantee contracts; and (2) regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be utilized in connection therewith.
Sec. 302.  Loans.  To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 302 of the Act, 50 U.S.C. App. 2092, to make loans thereunder.  Terms and conditions of loans under this authority shall be determined in consultation with the Secretary of the Treasury and the Director of OMB.
Sec. 303.  Additional Authorities.  (a)  To create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303 of the Act, 50 U.S.C. App. 2093, to make provision for purchases of, or commitments to purchase, an industrial resource or a critical technology item for Government use or resale, and to make provision for the development of production capabilities, and for the increased use of emerging technologies in security program applications, and to enable rapid transition of emerging technologies.
(b)  Materials acquired under section 303 of the Act, 50 U.S.C. App. 2093, that exceed the needs of the programs under the Act may be transferred to the National Defense Stockpile, if, in the judgment of the Secretary of Defense as the National Defense Stockpile Manager, such transfers are in the public interest.
Sec. 304.  Subsidy Payments.  To ensure the supply of raw or nonprocessed materials from high cost sources, or to ensure maximum production or supply in any area at stable prices of any materials in light of a temporary increase in transportation cost, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(c) of the Act, 50 U.S.C. App. 2093(c), to make subsidy payments, after consultation with the Secretary of the Treasury and the Director of OMB.
Sec. 305.  Determinations and Findings.  (a)  Pursuant to budget authority provided by an appropriations act in advance for credit assistance under section 301 or 302 of the Act, 50 U.S.C. App. 2091, 2092, and consistent with the Federal Credit Reform Act of 1990, as amended (FCRA), 2 U.S.C. 661 et seq., the head of each agency engaged in procurement for the national defense is delegated the authority to make the determinations set forth in sections 301(a)(2) and 302(b)(2) of the Act, in consultation with the Secretary making the required determination under section 202 of this order; provided, that such determinations shall be made after due consideration of the provisions of OMB Circular A 129 and the credit subsidy score for the relevant loan or loan guarantee as approved by OMB pursuant to FCRA.
(b)  Other than any determination by the President under section 303(a)(7)(b) of the Act, the head of each agency engaged in procurement for the national defense is delegated the authority to make the required determinations, judgments, certifications, findings, and notifications defined under section 303 of the Act, 50 U.S.C. App. 2093, in consultation with the Secretary making the required determination under section 202 of this order.
Sec. 306.  Strategic and Critical Materials.  The Secretary of Defense, and the Secretary of the Interior in consultation with the Secretary of Defense as the National Defense Stockpile Manager, are each delegated the authority of the President under section 303(a)(1)(B) of the Act, 50 U.S.C. App. 2093(a)(1)(B), to encourage the exploration, development, and mining of strategic and critical materials and other materials.
Sec. 307.  Substitutes.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(g) of the Act, 50 U.S.C. App. 2093(g), to make provision for the development of substitutes for strategic and critical materials, critical components, critical technology items, and other resources to aid the national defense.
Sec. 308.  Government-Owned Equipment.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(e) of the Act, 50 U.S.C. App. 2093(e), to:
(a)  procure and install additional equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the Federal Government and to procure and install Government owned equipment in plants, factories, or other industrial facilities owned by private persons;
(b)  provide for the modification or expansion of privately owned facilities, including the modification or improvement of production processes, when taking actions under sections 301, 302, or 303 of the Act, 50 U.S.C. App. 2091, 2092, 2093; and
(c)  sell or otherwise transfer equipment owned by the Federal Government and installed under section 303(e) of the Act, 50 U.S.C. App. 2093(e), to the owners of such plants, factories, or other industrial facilities.
Sec. 309.  Defense Production Act Fund.  The Secretary of Defense is designated the Defense Production Act Fund Manager, in accordance with section 304(f) of the Act, 50 U.S.C. App. 2094(f), and shall carry out the duties specified in section 304 of the Act, in consultation with the agency heads having approved, and appropriated funds for, projects under title III of the Act.
Sec. 310.  Critical Items.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 107(b)(1) of the Act, 50 U.S.C. App. 2077(b)(1), to take appropriate action to ensure that critical components, critical technology items, essential materials, and industrial resources are available from reliable sources when needed to meet defense requirements during peacetime, graduated mobilization, and national emergency.  Appropriate action may include restricting contract solicitations to reliable sources, restricting contract solicitations to domestic sources (pursuant to statutory authority), stockpiling critical components, and developing substitutes for critical components or critical technology items.
Sec. 311.  Strengthening Domestic Capability.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 107(a) of the Act, 50 U.S.C. App. 2077(a), to utilize the authority of title III of the Act or any other provision of law to provide appropriate incentives to develop, maintain, modernize, restore, and expand the productive capacities of domestic sources for critical components, critical technology items, materials, and industrial resources essential for the execution of the national security strategy of the United States.
Sec. 312.  Modernization of Equipment.  The head of each agency engaged in procurement for the national defense, in accordance with section 108(b) of the Act, 50 U.S.C. App. 2078(b), may utilize the authority of title III of the Act to guarantee the purchase or lease of advance manufacturing equipment, and any related services with respect to any such equipment for purposes of the Act.  In considering title III projects, the head of each agency engaged in procurement for the national defense shall provide a strong preference for proposals submitted by a small business supplier or subcontractor in accordance with section 108(b)(2) of the Act, 50 U.S.C. App. 2078(b)(2).
PART IV  -  VOLUNTARY AGREEMENTS AND ADVISORY COMMITTEES
Sec. 401.  Delegations.  The authority of the President under sections 708(c) and (d) of the Act, 50 U.S.C. App. 2158(c), (d), is delegated to the heads of agencies otherwise delegated authority under this order.  The status of the use of such delegations shall be furnished to the Secretary of Homeland Security.
Sec. 402.  Advisory Committees.  The authority of the President under section 708(d) of the Act, 50 U.S.C. App. 2158(d), and delegated in section 401 of this order (relating to establishment of advisory committees) shall be exercised only after consultation with, and in accordance with, guidelines and procedures established by the Administrator of General Services.
Sec. 403.  Regulations.  The Secretary of Homeland Security, after approval of the Attorney General, and after consultation by the Attorney General with the Chairman of the Federal Trade Commission, shall promulgate rules pursuant to section 708(e) of the Act, 50 U.S.C. App. 2158(e), incorporating standards and procedures by which voluntary agreements and plans of action may be developed and carried out.  Such rules may be adopted by other agencies to fulfill the rulemaking requirement of section 708(e) of the Act, 50 U.S.C. App. 2158(e).
PART V  -  EMPLOYMENT OF PERSONNEL
Sec. 501.  National Defense Executive Reserve.  (a) In accordance with section 710(e) of the Act, 50 U.S.C. App. 2160(e), there is established in the executive branch a National Defense Executive Reserve (NDER) composed of persons of recognized expertise from various segments of the private sector and from Government (except full time Federal employees) for training for employment in executive positions in the Federal Government in the event of a national defense emergency.
(b)  The Secretary of Homeland Security shall issue necessary guidance for the NDER program, including appropriate guidance for establishment, recruitment, training, monitoring, and activation of NDER units and shall be responsible for the overall coordination of the NDER program.  The authority of the President under section 710(e) of the Act, 50 U.S.C. App. 2160(e), to determine periods of national defense emergency is delegated to the Secretary of Homeland Security.
(c)  The head of any agency may implement section 501(a) of this order with respect to NDER operations in such agency.
(d)  The head of each agency with an NDER unit may exercise the authority under section 703 of the Act, 50 U.S.C. App. 2153, to employ civilian personnel when activating all or a part of its NDER unit.  The exercise of this authority shall be subject to the provisions of sections 501(e) and (f) of this order and shall not be redelegated.
(e)  The head of an agency may activate an NDER unit, in whole or in part, upon the written determination of the Secretary of Homeland Security that an emergency affecting the national defense exists and that the activation of the unit is necessary to carry out the emergency program functions of the agency.
(f)  Prior to activating the NDER unit, the head of the agency shall notify, in writing, the Assistant to the President for Homeland Security and Counterterrorism of the impending activation.
Sec. 502.  Consultants.  The head of each agency otherwise delegated functions under this order is delegated the authority of the President under sections 710(b) and (c) of the Act, 50 U.S.C. App. 2160(b), (c), to employ persons of outstanding experience and ability without compensation and to employ experts, consultants, or organizations.  The authority delegated by this section may not be redelegated.
PART VI  -  LABOR REQUIREMENTS
Sec. 601.  Secretary of Labor.  (a)  The Secretary of Labor, in coordination with the Secretary of Defense and the heads of other agencies, as deemed appropriate by the Secretary of Labor, shall:

(1)  collect and maintain data necessary to make a continuing appraisal of the Nation's workforce needs for purposes of national defense;

(2)  upon request by the Director of Selective Service, and in coordination with the Secretary of Defense, assist the Director of Selective Service in development of policies regulating the induction and deferment of persons for duty in the armed services;

(3)  upon request from the head of an agency with authority under this order, consult with that agency with respect to:  (i) the effect of contemplated actions on labor demand and utilization; (ii) the relation of labor demand to materials and facilities requirements; and (iii) such other matters as will assist in making the exercise of priority and allocations functions consistent with effective utilization and distribution of labor;

(4)  upon request from the head of an agency with authority under this order:  (i) formulate plans, programs, and policies for meeting the labor requirements of actions to be taken for national defense purposes; and (ii) estimate training needs to help address national defense requirements and promote necessary and appropriate training programs; and

(5)  develop and implement an effective labor management relations policy to support the activities and programs under this order, with the cooperation of other agencies as deemed appropriate by the Secretary of Labor, including the National Labor Relations Board, the Federal Labor Relations Authority, the National Mediation Board, and the Federal Mediation and Conciliation Service.

(b)  All agencies shall cooperate with the Secretary of Labor, upon request, for the purposes of this section, to the extent permitted by law.
PART VII  -  DEFENSE PRODUCTION ACT COMMITTEE
Sec. 701.  The Defense Production Act Committee.  (a)  The Defense Production Act Committee (Committee) shall be composed of the following members, in accordance with section 722(b) of the Act, 50 U.S.C. App. 2171(b):

(1)   The Secretary of State;

(2)   The Secretary of the Treasury;

(3)   The Secretary of Defense;

(4)   The Attorney General;

(5)   The Secretary of the Interior;

(6)   The Secretary of Agriculture;

(7)   The Secretary of Commerce;

(8)   The Secretary of Labor;

(9)   The Secretary of Health and Human Services;

(10)  The Secretary of Transportation;

(11)  The Secretary of Energy;

(12)  The Secretary of Homeland Security; 

(13)  The Director of National Intelligence;

(14)  The Director of the Central Intelligence Agency;

(15)  The Chair of the Council of Economic Advisers;

(16)  The Administrator of the National Aeronautics and Space Administration; and

(17)  The Administrator of General Services.

(b)  The Director of OMB and the Director of the Office of Science and Technology Policy shall be invited to participate in all Committee meetings and activities in an advisory role.  The Chairperson, as designated by the President pursuant to section 722 of the Act, 50 U.S.C. App. 2171, may invite the heads of other agencies or offices to participate in Committee meetings and activities in an advisory role, as appropriate.
Sec. 702.  Offsets.  The Secretary of Commerce shall prepare and submit to the Congress the annual report required by section 723 of the Act, 50 U.S.C. App. 2172, in consultation with the Secretaries of State, the Treasury, Defense, and Labor, the United States Trade Representative, the Director of National Intelligence, and the heads of other agencies as appropriate.  The heads of agencies shall provide the Secretary of Commerce with such information as may be necessary for the effective performance of this function.
PART VIII  -  GENERAL PROVISIONS
Sec. 801.  Definitions.  In addition to the definitions in section 702 of the Act, 50 U.S.C. App. 2152, the following definitions apply throughout this order:
(a)  "Civil transportation" includes movement of persons and property by all modes of transportation in interstate, intrastate, or foreign commerce within the United States, its territories and possessions, and the District of Columbia, and related public storage and warehousing, ports, services, equipment and facilities, such as transportation carrier shop and repair facilities.  "Civil transportation" also shall include direction, control, and coordination of civil transportation capacity regardless of ownership.  "Civil transportation" shall not include transportation owned or controlled by the Department of Defense, use of petroleum and gas pipelines, and coal slurry pipelines used only to supply energy production facilities directly.
(b)  "Energy" means all forms of energy including petroleum, gas (both natural and manufactured), electricity, solid fuels (including all forms of coal, coke, coal chemicals, coal liquification, and coal gasification), solar, wind, other types of renewable energy, atomic energy, and the production, conservation, use, control, and distribution (including pipelines) of all of these forms of energy.
(c)  "Farm equipment" means equipment, machinery, and repair parts manufactured for use on farms in connection with the production or preparation for market use of food resources.
(d)  "Fertilizer" means any product or combination of products that contain one or more of the elements nitrogen, phosphorus, and potassium for use as a plant nutrient.
(e)  "Food resources" means all commodities and products, (simple, mixed, or compound), or complements to such commodities or products, that are capable of being ingested by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for human or animal consumption.  "Food resources" also means potable water packaged in commercially marketable containers, all starches, sugars, vegetable and animal or marine fats and oils, seed, cotton, hemp, and flax fiber, but does not mean any such material after it loses its identity as an agricultural commodity or agricultural product.
(f)  "Food resource facilities" means plants, machinery, vehicles (including on farm), and other facilities required for the production, processing, distribution, and storage (including cold storage) of food resources, and for the domestic distribution of farm equipment and fertilizer (excluding transportation thereof).
(g)  "Functions" include powers, duties, authority, responsibilities, and discretion.
(h)  "Head of each agency engaged in procurement for the national defense" means the heads of the Departments of State, Justice, the Interior, and Homeland Security, the Office of the Director of National Intelligence, the Central Intelligence Agency, the National Aeronautics and Space Administration, the General Services Administration, and all other agencies with authority delegated under section 201 of this order.
(i)  "Health resources" means drugs, biological products, medical devices, materials, facilities, health supplies, services and equipment required to diagnose, mitigate or prevent the impairment of, improve, treat, cure, or restore the physical or mental health conditions of the population.
(j)  "National defense" means programs for military and energy production or construction, military or critical infrastructure assistance to any foreign nation, homeland security, stockpiling, space, and any directly related activity.  Such term includes emergency preparedness activities conducted pursuant to title VI of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5195 et seq., and critical infrastructure protection and restoration.
(k)  "Offsets" means compensation practices required as a condition of purchase in either government to government or commercial sales of defense articles and/or defense services as defined by the Arms Export Control Act, 22 U.S.C. 2751 et seq., and the International Traffic in Arms Regulations, 22 C.F.R. 120.1 130.17.
(l)  "Special priorities assistance" means action by resource departments to assist with expediting deliveries, placing rated orders, locating suppliers, resolving production or delivery conflicts between various rated orders, addressing problems that arise in the fulfillment of a rated order or other action authorized by a delegated agency, and determining the validity of rated orders.
(m)  "Strategic and critical materials" means materials (including energy) that (1) would be needed to supply the military, industrial, and essential civilian needs of the United States during a national emergency, and (2) are not found or produced in the United States in sufficient quantities to meet such need and are vulnerable to the termination or reduction of the availability of the material.
(n)  "Water resources" means all usable water, from all sources, within the jurisdiction of the United States, that can be managed, controlled, and allocated to meet emergency requirements, except "water resources" does not include usable water that qualifies as "food resources."
Sec. 802.  General.  (a)  Except as otherwise provided in section 802(c) of this order, the authorities vested in the President by title VII of the Act, 50 U.S.C. App. 2151 et seq., are delegated to the head of each agency in carrying out the delegated authorities under the Act and this order, by the Secretary of Labor in carrying out part VI of this order, and by the Secretary of the Treasury in exercising the functions assigned in Executive Order 11858, as amended.
(b)  The authorities that may be exercised and performed pursuant to section 802(a) of this order shall include:

(1)  the power to redelegate authorities, and to authorize the successive redelegation of authorities to agencies, officers, and employees of the Government; and

(2)  the power of subpoena under section 705 of the Act, 50 U.S.C. App. 2155, with respect to (i) authorities delegated in parts II, III, and section 702 of this order, and (ii) the functions assigned to the Secretary of the Treasury in Executive Order 11858, as amended, provided that the subpoena power referenced in subsections (i) and (ii) shall be utilized only after the scope and purpose of the investigation, inspection, or inquiry to which the subpoena relates have been defined either by the appropriate officer identified in section 802(a) of this order or by such other person or persons as the officer shall designate.

(c)  Excluded from the authorities delegated by section 802(a) of this order are authorities delegated by parts IV and V of this order, authorities in section 721 and 722 of the Act, 50 U.S.C. App. 2170 2171, and the authority with respect to fixing compensation under section 703 of the Act, 50 U.S.C. App. 2153.
Sec. 803.  Authority.  (a)  Executive Order 12919 of June 3, 1994, and sections 401(3) (4) of Executive Order 12656 of November 18, 1988, are revoked.  All other previously issued orders, regulations, rulings, certificates, directives, and other actions relating to any function affected by this order shall remain in effect except as they are inconsistent with this order or are subsequently amended or revoked under proper authority.  Nothing in this order shall affect the validity or force of anything done under previous delegations or other assignment of authority under the Act.
(b)  Nothing in this order shall affect the authorities assigned under Executive Order 11858 of May 7, 1975, as amended, except as provided in section 802 of this order.
(c)  Nothing in this order shall affect the authorities assigned under Executive Order 12472 of April 3, 1984, as amended.
Sec. 804.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect functions of the Director of OMB relating to budgetary, administrative, or legislative proposals.
(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

BARACK OBAMA

THE WHITE HOUSE,
         March 16, 2012.

Smart Meters

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Ronald Reagan

Floridians Are About To Get Raped - Again

Posted 2012-03-05 10:01
by Karl Denninger
in Editorial

Floridians Are About To Get Raped - Again

 

You'd think that the "nobody committed any crimes" crowd could muscle up some objection to this sort of bill, but it appears they haven't and won't.
Indeed, the very working title of the bill is a fraud -- "The Florida Fair Foreclosure Act."
It is in fact nothing of the sort.
Any time I see a bill that replaces the word "shall" with the word "may" in virtually every instance, and it is almost-impossible to find instances of the opposite, the hair goes up on the back of my neck.  The word shall is an important one in statutory construction, as it imposes hard limits on conduct and leaves no wiggle room, where the word "may" leaves ultimate discretion to people who are, in many cases, unelected and unaccountable.
There is exactly one good thing in this bill which will be trumpeted I'm sure by its apologists -- it purports to limit deficiency judgments (which are allowed in Florida) to an amount that "may not exceed the difference between the judgment amount or, in the case of a short sale, the outstanding debt and the fair market value of the property on the date of sale."
The problem with this alleged "limit" is the words "outstanding debt", not "outstanding principal."  Words matter, you see, and it is the practice of banks and servicers to lard up a foreclosure with junk fees such as force-placed insurance that they themselves own, turning a service not provided into an iron-clad debt with the stroke of a pen.  Then there are process service fees that are 3, 5, even 10 times what you'd actually pay a real process server, and this assumes you got actual service (in many cases we have documented sewer service in this state.)
So in point of fact the very premise of the bill is a fraud, just as are so many other debt-collection schemes, much like Student Loans were you start with $20,000 in debt, become delinquent and by the time statutory penalties and fees are added you're suddeny facing a $40,000 bill -- with no way to reduce it.
The bill allegedly also requires foreclosing parties to prove standing, but is silent on any provisions for voiding judgments or imposing civil or criminal penalties for lies.  It thus does nothing of the kind to actually make foreclosures fair, in that false swearing has become the new stock in trade among banksters and servicers.  Indeed without this they'd have nothing, as the record shows that an overwhelming number of alleged "transfers" never actually took place -- that is, the so-called "trusts" were empty in the first instance.  Never mind that under the common law principle of equity you can't recover for your harms twice -- this, incidentally, prevents you from suing someone once you've recovered via an insurance payout.  Oh sure, the insurance company might sue to recover what they paid, but the principle of "unjust enrichment" bars you from profiting from a tort -- your recovery is limited to the loss you actually suffered, absent a punitive damage award.
Yet foreclosures have become in many cases punitive damages by other means.  Many of the alleged "losses" were covered by default insurance, overcollateralization or the loss in question was passed to the taxpayer via various bailout programs and scams, and thus has already been covered.  The alleged "real parties at interest" are never forced to show a true and accurate accounting of the losses they allege occurred -- the simple fact that you didn't pay is deemed "enough."
It's not enough, however, in law or equity.  To recover from someone via suit you must have actual monetary loss of some sort and you must be to prove it up.  I can sue you because I think you're ugly, but I can't win any money on that basis.  To win a judgment displacing your property (whether in the form of dollars or otherwise) I must show economic injury.  This basic principle has been lost in the shuffle of claims that "Joe Deadbeat didn't pay" while the snickering banksters have already sucked their "loss" back from the taxpayer and default-swap writer and thus, were they forced to show an actual accounting, would have to admit to they had no economic injury at all.
I know, you'll ask "who paid and where did the money come from?"
Are you really that obtuse?
On January 20th, 2009 the public debt stood at $6.31 trillion.
On February 24th 2012 the public debt stood at $10.68 trillion, or $4.37 trillion more.  By comparison the Social Security and Medicare deficit grew from $4.32 to $4.76 trillion, a paltry $440 billion, or 10% of the back-door bailout to the financial industry.
Incidentally, if you believe that the banksters took all these monstrous losses, then I'm sure you can find them for me on the Fed Z1.  I wish you the best of luck -- the 4th Quarter of 2008 recorded mortgage liability as $10.5 trillion; as of the last read available (2011 Q3) it was $9.88 trillion, or a decrease of $620 billion (about 6% from the time Obama took office, and down 7.3% from the peak in Q1 2008.)
Hmmm..... losses eh?  May I ask where the economic losses actually are and who holds them?  This much is quite certain based on the Fed Z1, if you believe it to be accurate -- the banks, pension funds and others who allege these economic losses in courtrooms across the country never took them, having passed them off to the taxpayer.
If someone ought to be standing in court foreclosing it is you and I, not some bank.
But it's not.
We have become the nation of lies and scams and this "Fair Foreclosure" bill is just the latest iteration of a sad story of the destruction of the Rule of Law in America.  We've become blinded by the promise of political partisans, even those in third parties.
Just this last weekend Gary Johnson, the Libertarian Presidential front-runner, was heard to tell delegates in California that government borrowing was good.  In a day when people had actual brains in their heads and were independent thinkers in a third party (especially the Libertarian Party) such a proclamation would have led to that person being run out of the convention hall with pitchforks and torches, especially when he has repeatedly claimed he will submit a "balanced" budget to Congress.
How do you square a balanced budget with the claim that borrowing is good?  You don't.
But instead of the immediate pitchfork reaction to this display of idiocy that was justly deserved he won the straw poll with more than 70% of the vote!
Not even the Libertarians have remaining within them the will to stand up and demand fiscal responsibility.  Or perhaps the entire California convention was full of people partaking of "medical marijuana" on the convention floor!
Folks, this is a serious time for serious people.  The so-called "MMT" theorists have had their own theories not only mathematically proved bankrupt but empirically they've been proved wrong as well, since were they correct Europe could have resolved Greece's problems by "simply" printing more money and spending it into existence.
But the Euro Zone's construction lays bare the fraud in these schemes and claims, because it forces exposure of the truth -- that all such schemes are nothing more than a tax levied against the people.  In a federation of currency users such as the Euro the person(s) who get financially gang*****d to support the profligate become immediately apparent and cannot be hidden -- in this case, it is the German people who are being asked to impoverish themselves so as to continue to allow the Greeks to spend beyond their means.
Such it is in America too, although we don't see the classifications divided so readily.  The diffusion gives cover to the liars and thieves, but diffusion does not change outcomes -- it simply makes them more difficult to discern prior to attainment of critical mass.
As gas prices rise and food has gone up by 6% over the last year, the premise of "2% inflation" becomes nothing more than a bad joke.  Never mind that even if 2% inflation was maintained (and it never has been) it results in 143% inflation over a working man's life.  When this is coupled to ever-greater levels of debt it appears for a short time that you're getting ahead, much as it did in the 2000s, but the truth is that median family incomes have not moved a millimeter during that time while at the actual inflation rate, close to 3%, the cost of living has gone up by 34% over that same ten years.
For those in the middle class and below a 34% increase in the cost of living against flat wage income is catastrophic, literally rending that average family destitute.  It is worse, by far, than the inflationary impact of the late 1970s and early 1980s.  Papering it over with more and more debt was the path taken in the 2000s, which did nothing more than temporarily hide the impact of the harm done to the American people.
And now, having stolen the money by shifting the liability to the taxpayer, effectively being paid in full, the banksters are going to get the law altered in Florida so they will never have to provide an actual accounting and thus expose the fact that they suffered no loss and are entitled to no recovery.
The "hot money" games will soon end, ladies and gentlemen, not because someone wants them to but because compound functions eventually go vertical, and the debt accumulation in play now is in the process of doing so.
I see a rolling wall cloud on the horizon.

 

The Market Ticker ® - Commentary on The Capital Markets 

 

ICLEI Membership list United States of America

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