Mark me down as vindictive but the people that perpetrated this fraud on the public and on our policy making should have a price to pay for their role in it. Science has been set back 50 years and so has our economy.
This Forbes piece today by Dinesh D'Souza that was helpful to me in understand the guy. My own leftist/Marxist view of him doesn't explain all of his bizarre thoughts and decisions. This piece does that the best I have read. 5 internet pages, too long to post so just a link and an excerpt here. 2 strikes against piece when I started, I remember not liking this author on something else and I hate pieces about how conservatives think written by non-conservatives. Usually no insight is gained.
Key points, his father was tribesman, a polygamist, a drunk and a socialist, but he was also a Harvard educated economist. Barack Jr. spent his formative years off of the mainland of the US in Hawaii but also Indonesia, Pakistan with roots from Kenya. The main theme is anti-colonialism. (This gets diluted in policy and speech I think because Obama's advisers are mostly run-of-the-mill-leftists.) We see anti-Americanism, but he sees the world a better place if America had less exceptionalism. US funding of off-shore drilling for Brazil to keep oil in Brazil while banning it here makes sense for example with this view.
He named his book 'Dreams from my Father', not dreams of my father. Excerpt quoting D'Souza:
"Obama Sr. was an economist, and in 1965 he published an important article in the East Africa Journal called "Problems Facing Our Socialism." Obama Sr. wasn't a doctrinaire socialist; rather, he saw state appropriation of wealth as a necessary means to achieve the anticolonial objective of taking resources away from the foreign looters and restoring them to the people of Africa. For Obama Sr. this was an issue of national autonomy. "Is it the African who owns this country? If he does, then why should he not control the economic means of growth in this country?"
As he put it, "We need to eliminate power structures that have been built through excessive accumulation so that not only a few individuals shall control a vast magnitude of resources as is the case now." The senior Obama proposed that the state confiscate private land and raise taxes with no upper limit. In fact, he insisted that "theoretically there is nothing that can stop the government from taxing 100% of income so long as the people get benefits from the government commensurate with their income which is taxed."
Remarkably, President Obama, who knows his father's history very well, has never mentioned his father's article. Even more remarkably, there has been virtually no reporting on a document that seems directly relevant to what the junior Obama is doing in the White House."
JDN: "I guess my question is whether being raised by two loving successful intelligent lesbians for example is that much worse (or better) than being raised by a single parent? I find it a bit odd that a successful single man or single woman can adopt and/or have a child and be commended and applauded yet a successful lesbian couple adopting or having a child is frowned upon."
GM: "I don't applaud single mothers who are single by choice." -------------------------------------------------------------------------- I agree with GM and lost a dear friend with that advice. I disclosed in my post "...as a single father raising a daughter the best I can I don't say that from some lofty perch of perfection." One of the keys to success that has worked for me taking custody virtually at birth was to make sure at least 6 loving adults to bond closely in her life, people she would see and spend time with at least every week of the year in the formative years, in particular having her experience the loving and nurturing hetero-marriage household of her maternal grandparents. I knew she needed a positive female role model to be close like a mother and needed also to witness and experience the relationship they have with each other. With some braggart I can say she is better off with me than aborted or abandoned, but I would never say this situation is preferable to having your one loving mother married to your one loving father married and with you in one loving household.
JDN, Your comparison of gay or lesbian adoption to single parenting or adoption is interesting. I would not want to judge one against the other - but will. Certainly having two is an advantage in some ways and there typically is some degree of femininity and masculinity distinction between the two. OTOH, with only one I can say that when times are difficult there no question in the mind of the parent or the child or anyone else who is the father (singular), not Daddy-Tom and/or Daddy-Bill, or who is the mother singular. With two of this or two of that; no one can stand up and say I am the father, or I am the mother (singular). I also don't like the first name familiarity required with the duplication.
I am not against gay parenting or gay adoption. I am simply against putting that concept alongside of hetero-marriage and hetero-parenting (a lot of hyphens are required) and saying that any combination is fine or equal. I don't believe God was wrong to make it so structured: "Honor your father and your mother".
Some kids are troubled, disadvantaged or otherwise not in demand for adoption. Similar to what I said for my situation, I would rather see a kid adopted by a gay or lesbian couple (or a single person) who sincerely want to take that on than have the kid aborted, abandoned or left without family.
Crafty, I think you have nailed the direction of the gay rights issue of today with the Australia story. A short time ago gays were coming out with a plea that said: accept us, we are different from you. We are different but we still have a right to happiness, employment, housing, education, etc. So far, so good. Somewhere along the road it changed to a demand: accept us we are the same as you.
No one is a perfect father or mother and no married couple with children are perfect parents. Some hetero-marriages are not for the purpose of procreation such as when my grandpa re-married at age 80. But marriage is mostly I think about building a home and a family and married heteros in one bed commonly leads to having and raising children.
Children have the best chance at the good things in life if they are raised in a loving home with one mother and one father married to each other and complementing each other's traits and strengths and weaknesses. If you don't see that principle coming from God's creation and intelligent design, maybe you can observe it or measure it empirically.
Recently there was a study concluding that children of gay parents were just as happy or happier than children of hetero-parents. That story line ran for about one day until critics of the study pointed out that the data all came from self-reporting by the parents about the happiness of their children and was funded by a gay adoption advocacy group. The study was part of an agenda (IMHO) to lead toward no distinction between genders with parenting being the end they seek. (Gay parenting by definition involves adoption.)
Separate from gayness, does anyone think children in general would do better with 2 fathers in their household instead of one father and a mother in a loving marriage with each bringing different qualities in terms of toughness, nurturing, different sensitivities and different role models to the household? Would two women with two hyphenated mommy-someone names competing to out nurture each other give, in general, the full balance that children might receive with one mother and one father - each one the only mother and the only father, not one of two? I don't think so and as a single father raising a daughter the best I can I don't say that from some lofty perch of perfection.
The end of gender distinctions after we eliminate the terms like bride, groom, husband, wife, father, mother, will be to update our religious books to command us to: Honor your gender-neutral parent-one and honor your other parent-one.
Besides nosebleed section, you can see the top of the stadium, this is a very early round in the tournament, but still an expensive sports ticket and people deserve a little peace and quiet to try to experience it from so far away. The view of the match is far better in your living room. Looked to me like the younger guy was admittedly disruptive and totally to blame, up until the physical stuff started. Even when she slapped him he only laughed at her. He said something else provocative as he sat down but it looked like the older guy was already planning to step in on him.
Crowd asked a good question, 'where is security?' They were also saying throw the bum out meaning for sure the young guy.
I was guessing the young guy gets a disorderly conduct, the woman a 3rd or 5th degree assault - a slap charge, and the older guy a serious charge for going in to hurt him. NY Post coverage says otherwise: "“It’s a hot night in New York. Things happen,” Chris Widmaier,a US Tennis Association spokesman said of the tussle, which resulted in no arrests. http://www.nypost.com/p/news/local/queens/fight_night_at_the_open_QlwSKhd4YInp9hGBdZ7m0K
I should add that if they are still looking at film maybe they will still issue a citation or 2. ----- Djokovic went on to beat Petzschner 7-5, 6-3, 7-6 (8-6).
Very well put CCP, the Truman center in Hiroshima. We didn't build that and we can't put a church or synagogue anywhere in a Muslim land. This is a fascinating and emotionally charged upside-down issue. True free market thinking says this site goes to the high bidder - strip club, pot shop, shooting range, what ever. NY of course is a heavily zoned and regulated town, what gets built is what they want to get built. Do developers survive without political contributions? I don't think so and why, because jobs don't get approved by just showing up with permit fees.
The whole issue is about bad taste. A mosque is a monument to honor Islam and there are 100 of them operating freely in New York. This isn't near ground zero; this is where blood stained plane parts landed. I think people forget the hundred in the planes died too, not just in the building. Blood of mass murder is sacred ground, if you believe in that sort of thing. The city could 'take' the property for public purposes and under Kelo the city could 'take' the property for any private purposes that it sees fit. I didn't see Obama slamming that Supreme Court decision that gives local government complete control over what goes where.
The strangest part of it is to see no objection because it is not our place to say what can be built or cannot be built on sacred ground in New York City because of unbending principle and tolerance and meanwhile with a straight face tell Israel what religions of people can build in what areas of their land. Go figure.
Roughly Labor Day, if the election were held today - and it isn't - the Republicans would take the House. Discussed elsewhere are some things they could do, but they could pass nothing that would be veto proof.
The senate today is still in question. Real Clear Politics has it at 48 Dems, 45 R's (already a nice gain) and 7 highly contested, 6 of those 7 were Dem seats. The vice President breaks the tie so 50 means nothing. R's need 6 of those 7 for a majority and still would be nowhere near 60 to force any vote and nowhere near veto-proof.
Here are the seven most contested: CA: Boxer (D) CO: Bennet (D) FL: Open (R) IL: Open (D) NV: Reid (D) WA: Murray (D) WI: Feingold (D)
All would seem impossible for Republicans a short time ago, even Florida with 2 (alleged) Republicans running. Logic might assume even races break randomly. History might give the close race to the incumbent for that advantage. The energy and movement this year may say the opposite - that they all break against the failed and unpopular ruling regime.
As a partisan, I will take any win I can get, but Republicans might be better positioned into 2012 for congress and President to still be fighting as the outsiders. For the good of the nation IMHO they must take at least one chamber to at least slow this train wreck.
If that many blue states swung against Obama and his big government 'spread the wealth' economic policies were still failing, it would be interesting to see if he would still hunker down on ideology or read the message, adapt and try to survive as Clinton did by partially working with the other side in the direction of economic growth. At this point, I think everyone sees Obama as unbendable and every key issue would be an unsolvable stalemate.
If we are talking about Dem challengers in 2012, Evan Bayh separated himself from Obama way sooner and with some substance. Credit GM for this observation: on May 30, 2010, "Agreed. I see Evan Bayh setting up a primary challenge for 2012."
Mentioned today in Time magazine under "How Barack Obama Became Mr. Unpopular" (already linked) http://www.time.com/time/nation/article/0,8599,2015629-3,00.html Bayh: "A lot of this was really inevitable, or at least pretty predictable," says Indiana Senator and former governor Evan Bayh, a Democratic expert at getting elected in the Rust Belt. "We have a lot of government activism at a time when skepticism of government efficiency is at an all-time high."
There has never been any policy difference between Obama and Hillary and people hate Obama's policies while they like him personally. Bayh put his finger exactly on the pulse in that brief comment. Doesn't sound like he is biting his tongue now. How he would ever get support from Dem activists, I have no idea, but easily a third of Obama voters are ready to move rightward or to the center and other Dems might start thinking about winning again after experiencing what is about to happen to them in '010.
Without taking anything away from Glen Beck's amazing success with the rally of 300,000 in Washington with many speakers, just wanted to put a historical marker here that when they want to 'fill the stadium' Sarah Palin is still the one they call.
Thanks Crafty for the pageant video. She was also I believe, point guard for a state championship basketball team. I don't know of any video but that story might give a better look at her other qualities, passion, leadership, determination etc.
I expected the Iraq speech to contain the big gaffe. but it was more of a 'one the one hand - on the other hand' type of hypocrisy (http://www.slate.com/id/2265656/) where he really just did a clumsy job of trying to be a little bit diplomatic in an impossible situation.
The big gaffe of the moment is our self reporting of the U.S to the U.N. Human Rights commission where it is presumed they are the good guys and we are the perps. Fellow members of the commission include Castro and Mau - or Hu-ever has his job right now. Nice part of that gaffe is that Hillary's fingerprints are all over it, so opponents can point back at both of them as they start to split.
So if they don't extend tax cuts the economy will tank or at least continue stagnation with permanent equilibrium at European levels of unemployment *. They need to make tax cuts permanent - all the way up the income chart.
The point about solar lights too dim is true. The cheap ones will barely light a walkway and don't give the look of someone home. You need more juice than that. For anyone who wants to make the effort for an unwired outbuilding or driveway entrance, you can build a more powerful system pretty cheaply. You can buy a small 12v 3 watt or 5 watt solar panel on ebay fairly cheap and make night power off of a deep cycle or older car battery with some charge left in it. incandescent bulbs will drain the battery. For 12v the ones with multiple LED are bright and efficient, or with a small inverter you can use 110v products like a timer or motion detector connected to more efficient CFL bulbs. I like to leave a radio with talk on in a vacant rental house. Along with some timers and lighting it makes it seem from outside the window or door very much like someone is in there- even during the day. I'm amazed at how often I fool myself with that when I come back in. I haven't done this yet, but what I would like to hook up is motion detector activation to a recording of a fiercely barking dog to come on with the lights. The motion detector lights typically come with 2 light sockets. Put a bulb in one and a socket adapter outlet in the other and run a cord a little further to trigger something else, maybe another light and radio further away, up by the house.
At home, besides living in a crime free area with watchful neighbors, most effective for me is having multiple vehicles that I split usage with and move around quite a bit for various reasons along with varying schedules that was mentioned. The affect is that you never look in our driveway and assume no one is home. Most people I'm sure don't have extra cars but maybe you know someone who wants one stored or maybe you keep the extra one in the garage to protect the vehicle when having it by the sidewalk or doorstep would better help to protect the house. A stored car should be started and moved around regularly anyway which is perfect for this purpose.
The extra car trick backfired for me at one of my inner city houses. They punched a hole through the bottom of the gas tank. The next time I left a nice note on the dash saying that the gas tank was empty, and made sure it was. Strategies in a war zone are different than strategies in a neighborhood.
Beyond the fake video camera idea I would like to go to a cheap real video camera saving onto the hard disk of an old computer and activated by the motion lights. Maybe you could capture a license plate or mug shot of the offenders.
The first hand account from Costa Rica scares me. No one should have to face a gun in their face unless you are the perp. A friends young daughter finishing college is traveling there a lot and wanting to move there.
Knowing your premises was invaded is not a property crime to me. Someone could have been home or come home during the invasion and startled them. I would never assume someone with that kind of nerve is not likely to be violent.
Rand Paul's opponent has that same problem in Kentucky. He is articulate and reasonably conservative on the issues but will align with Reid, Durbin, Schumer etc. if he wins.
Dems have a big problem coming - most of the reasonable and moderate ones from center-right districts are going to lose and all the far left ones from untouchable districts will win, leaving a party even further from the American people than it is today.
What? A health hazard to be shot with a lead bullet? Absolutely. I wonder if they would also require the guy who stabbed me to sterilize his knife between uses. Really, it's in everyone's best interest. We don't want anyone to get hurt.
Same/similar movement as those who want to ban all light bulbs that DON'T contain Mercury.
Obama's historic victory speech was before 'tens of thousands', according to CBS.
CCP: Does anyone think TIME magazine will place Beck on the cover with admiration like they did with Sharpton recently? wink
Yes on the cover with obligatory coverage of a phenomenon that they cannot stop, but not with admiration. This is a story.
After 2004, the last Republican victory (it has been a while now), there were NY Times reporters who said they didn't even know anyone who voted for Bush. Rush L. predicted they would have to send foreign correspondents out into regions like Kansas to find out more about these people who don't think like they do. That victory was subtle and somewhat hollow. This one is energized. People did not wait for the pollsters and the correspondents to come out and ask their opinion.
Some underlying fundamentals in no particular order:
The US imports from China: $300-330 billion China imports form US: $70 billion, less than 1/4th. = China is importing $230+ dollars. Must spend or invest these US dollars somewhere.
(EU goods exports to China 2009: €81.7 billion EU goods imports from China 2009: €214.7 billion - similar situation)
We also have a trade deficit with Europe, peaked at about $140-150 billion/yr. which floods dollars, not Euros into the global market.
The total US trade deficit peaked at about $700-750 in the healthy economy of 2005-2008. (That number is down in this recession) We are running a trade deficit with the rest of the world outside of China and Europe of roughly $250 billion/yr. That is net of what they spend with us so they must buy elsewhere using dollars or invest/lend back to the US in dollars.
The US imports 66% of its oil, buys primarily in US$, $400 billion/yr,
The US restricts domestic oil production. Those restrictions cause much of the import requirement which causes dollars to leave the US.
China for the most part does not need US manufactured goods (and steals our technology anyway).
China consumers use perhaps a few hundred billion dollars/yr worth of US software, music, movies, patent infringements, etc. that they don't pay for (which would otherwise create some balance in trade).
The US zones, restricts, regulates, taxes, creates work rules, has pending energy use legislation, health care mandates, etc. that make US goods largely non-competitive in an economically freer country like China (it hurts to say that). US auto manufacturing pays more for healthcare than steel.
China imports oil at $150-200 billion /yr.
US budget deficit is currently at 1500-1600 billion.
Of our public debt, 25% is owned by foreign governments, 22% of that is owned by China. Those percentages will need to be updated after we see who is buying all our new debt. At those percentages that would be $88 Billion per year bought by the China. In other words, a part of their trade surplus comes back in there and a part of those dollars go into the global economy via their oil suppliers. -------------------
These imbalances combine to make bidirectional and circular flows of funds that find a balance. Each piece of the imbalance above either enables or causes something else to occur or exist, depending on how you look at it. Floating or changing exchange rates also play a role in finding balance, as we see between the dollar and the Euro, but did not have with China. ---------------------------- Changing fundamentals:
If China had a middle class demanding and purchasing goods from around the world up to near the amount of Chinese exports - it would not find itself holding dollars and using them for other purchases like oil and buying T-bills.
If the US produced all of its own oil that it could - fewer dollars would flood the world markets.
If the US moved toward rough balance in its federal budget - we would need fewer dollars to come back in to lend us our public debts.
If China enforced US/World copyright/patent/trademark laws - we would have some chance at approaching trade parity.
If the US committed itself to being a competitive place to locate, manufacture, produce and export from instead of a place actively looking for ways to hinder production and punish profits - US goods would be more competitive, we would export more, employ more people in manufacturing and send fewer net dollars out.
As economies elsewhere develop, prosper, grow a middle class and their own industries, and develop legal systems to enforce global patents copyrights etc., they become viable markets for US export sales for technologies, intellectual property products, services, etc. China has economic growth but does not seem to grow its middle class or bring its legal/political system up intot he 19th century or beyond. -----
Very true that we certainly don't want to be borrowing our excesses in foreign currency but also true that we shouldn't want to be borrowing our excesses from anyone.
If you leave these fundamentals in place, the current cycle is hard to break. China needs to sell to America to get a significant part of its money and growth and that money is in dollars. Then China needs to spend or invest those dollars somewhere. They can require foreign sales in Yuan (Renminbi) but the customer cannot pay with them if they don't have them and unless they are an oil exporter, China is not buying their products with any proportionality.
House) If conservative Republicans take the House, a number of new and pending big government initiatives can be stopped or slowed in their tracks including ObamaCare, see Crafty's post regarding delay, de-fund etc. and cap and tax the energy and manufacturing destruction legislation pending.
Senate) If constitution-respecting conservative Republicans take the Senate, Obama may not be able to put another liberal activist onto the Supreme Court for the ages. If Dems keep the senate, look for Ginsburg 75 now and possibly Breyer who will be 71 in 2012 to retire in the next 2 years so that Obama can pack the court with more young liberal women hoping to live to a hundred and finish dismantling the founding principles.
"A piece that speaks to Doug's point: Higher Tax Rates on the Rich Will Backfire" ------ Thank you BBG. If you don't believe me, see Christina Romer's last published piece before being fired as chief economic adviser: the tax hikes coming will be highly contractionary.
We hear about tax cuts and deficits from the 1980s but seldom hear that revenues doubled in that decade, same link from my previous post: Revenues 1980: $517 Billion. Revenues 1990: 1.032 Trillion, almost exactly doubling in 10 years, in spite of one recession waiting for the tax cuts to kick in and while inflation was defeated in its tracks. As always, the deficits came from excess spending. http://www.gpoaccess.gov/usbudget/fy11/pdf/hist.pdf p.26
Wash.Post: "They did not know two major tax cuts representing trillions in lost revenue would be passed."
Crafty: "Exactly when were these tax rate cuts passed?" ------------------
I think they are referring to 2001 and 2003. Strangely even in hindsight they are confusing "trillions in lost revenue" with actual results which were the two largest years of dollar increases to a Treasury anywhere on earth at any time in history ending with the Pelosi-Obama takeover of congress.
"an important strand of China's strategy is to use those dollars to buy assets, raw materials, etc world-wide."
Yes. So the 2 largest energy importers buy oil in dollars hence oil is sold in dollars, oil suppliers take in dollars, buy or invest back into what they need, all over the world - in dollars. I'm not able to see how that cycle breaks in favor of the Chinese currency without a change in underlying fundamentals.
Thanks BBG for that. CBO models are wrong just like the climate models. CBO still ignores almost all affects caused by changing incentives and disincentives. In the heyday of the previous tax cut and growth cycle, CBO was wrong about revenues by 12 digits in a year - roughly $100,000,000,000. As they say in Washington: good enough for government work. No one was fired and no changes to the flawed model were requested or forced on this BS agency.
That said, I think there is too much going on in that graph, measuring everything as a % of GDP which is not constant or on a straight line headed anywhere. Again like climate data, I say look at the actual numbers. At the end of the analysis, then some perspective is gained by seeing the results as a percentage of GDP or as a comparison to anything else. That graph hides much of the revenue growth during the highest growth years. In 2005 and 2006, we grew revenues by roughly a half a trillion dollars in two years to the Feds alone (highest dollar growth in history) not counting the windfalls states and local governments were taking in. At least the Wash. Post graph accurately shows that the hard inflection point is Jan. 2007 where it all started to go to hell, coinciding with Pelosi taking the Speakership, Obama-Hillary-Biden-Schumer taking majority power in the Senate, all promising to "end tax cuts for the rich", and new Congressman Keith Ellison symbolically putting his hand on the Koran and promising to dismantle piece by piece what we once knew as a great nation.
JDN: "I have little faith in 7-10 year economic projections."
True, they are based on some rosy scenario numbers such as that health care is net-free and that the economy will grow robustly while we continue to raise taxes during recession or stagnation. Without policy corrections, these forecasts will be WAY off the mark and reality will be far worse IMHO.
When Greece imploded, some thought it would bring down the Euro, the EU, the world financial system etc. It did not all come true but when the U.S. fails, only that one guy in the Amazon will be unaffected.
JDN, the original point was that we are loaded in debt and loading up more with no end in sight. Current (deemed but not passed) budget is roughly $4T revenues, $2.5T revenues resulting in $1.5T in new debt or monetized deficit. Totally irresponsible and was enabled but not caused by China. Crafty is right that whatever that true debt burden is now we have not felt the main impact yet with interest rates artificially held close to zero. When interest rates skyrocket beyond our control, we are screwed and so are our creditors.
Crafty's wrote: "...we get to pay it (international debt) with dollars we print."
- What that means to me is that unlike third world countries, we (unfortunately) can inflate our way part way out of that burden, creating other/worse burdens.
"When folks stop taking our dollars we will be in the same shape as Greece. Folks have been taking our dollars for lack of alternative. Now they begin to have one. Should the trend continue, and we can no longer finance our deficits with the printing press, interest rates will shoot up-- quite possibly quite quickly as everyone heads for the exits at the same time."
- China's economy is built largely on export sales and its trade imbalance with the US (and elsewhere). If they sell to Americans who have only dollars while not buying our products they will have excess dollars. World trade if you include the investment and financial side offsetting the imbalanced flow of goods and services is a closed system. I don't see how they quit buying dollar based investments without first correcting the trade imbalance. If they sell off their dollars or dollar based investments, then someone else is holding them.
If the currency change is successful from the Chinese point of view, I think it would force both countries to behave more responsibly. (ex: Greek lawmakers approved sweeping pension reforms July 10 2010 http://www.reuters.com/article/idUSTRE6674K320100708) China needs to allow domestic consumption and personal wealth to start catching up with its production side and America needs to stop punishing our own manufacturers with the myriad of increasing rules, mandates, prohibitions, taxes, and start moving our federal budget back toward balance.
More likely this currency experiment will fail IMO for the same reasons that they were unable to do it previously.
The good news is that deficits and GDP are inversely related, not proportional. Most of current spending is not going to go away. The boldest proposal out there only rolls it back to 2008 levels. We can only grow revenues and thus shrink deficits by growing GDP so pro-growth policies if we could find some would improve both measures simultaneously. If we grow the private economy, deficits will shrink IF we find sane people to watch over public spending while we do this. And if we continue to steal the resources of our economy for the public sector, the GDP will not grow. The burden of the accumulated debt shrinks during times of high growth as a percentage of the total economy, but again only if public spending is controlled and contained.
I remember one of the pundits lamenting last year that China was the last check or balance left on our irresponsibility once Peloi-Reid-Obama gained their 60th vote in the senate. This news seems to illustrate that.
I have read that this is a good development and long overdue. For one thing the Americans have been complaining for quite some time that the fixed exchange rate was artificially low. If there is a market for their currency and a floating exchange rate, perhaps it will be right-sized.
"China is moving forward as we decline."
At this moment, yes/maybe. Given that famous traffic jam, I would say not very fast and not without bumps in the road. They are doing a couple of things right. Underlying that you will also find crony capitalism, mis-allocated resources, bad loans, overvalued assets, an unprecedented demographic scheme, inability to take on immigrants and a structural inability to make political change.
If they are moving past us they will need their own currency. But why did they not do it sooner? Certainly they were not trading in dollars as a favor to us. The dollar gave them something third world countries don't have - a stable currency. If the pendulum of forward progress swings backward a couple of times, the currency could get pounded. A floating and marketable currency will expose weakness. I hope they don't have any.
"“We’re now capable of doing renminbi settlement in many parts of the world,”"
Maybe they can and maybe you can't. But we don't have any yuan and we will be buying products from China in large quantities overnight, tomorrow morning and the next day. Those transactions will happen in dollars. If we must buy Yuan / Renminbi first, who do we buy them from? The Chinese who print it. What do we buy them with? Dollars. It's what we have. Then they have dollars to spend elsewhere in the world, like on oil/energy. Or they can invest it back in our economy, our T-bills or dollar based investments - same as they do now. They don't buy products from us for the most part so the trade / investment equation has to balance out somewhere. Looks to me like change won't be easy for them.
We have had some heated exchanges here over monetary policy. Second guessing the Fed from the armchair is easy and costs nothing. Managing your own real currency in a major lopsided economy is not. If I were the Fed advising the new currency board of the PRC my advice would be - don't try this at home.
Maybe this brave and articulate young Venezuelan could carry the flag forward in the next election...
The Killing Fields Of Caracas 08/25/2010
Socialism: Quick, what's the murder capital of the world: Kabul? Juarez? Try Caracas, Venezuela, a city whose dictator, Hugo Chavez, has made murder a means of extending his control.
The silent protest at Monday night's Miss Universe Pageant in Las Vegas was invisible to nearly everyone — except Venezuelans. On her final catwalk, the ranking Miss Universe, Stefania Fernandez, suddenly whipped out a Venezuelan flag in a patriotic but protocol-breaking gesture.
Fernandez waved her flag for the same reason Americans waved theirs after 9/11 — to convey resolution amid distress. Her flag had seven stars, significant because Chavez had arbitrarily added an eighth, making any use of a difficult-to-find seven-star banner an act of defiance.
Fernandez's countrymen went wild with joy on bulletin boards and Facebook, showing just how worried they are about their country. Their greatest fear is violent crime.
Ever since Chavez became president in 1999, Venezuelan cities have become hellholes in which murder rates have more than quadrupled. At 233 per 100,000, or one murder every 90 minutes, the rate in Caracas now tops that of every war zone in the world, according to an official National Statistics Institute study released Wednesday.
In fact, crime is the defining fact of life in today's Venezuela. About 96% of all murder victims are poor and lower-middle class, the very people Chavez claims to represent. "Don't venture into barrios at any time of the day, let alone at night," warns the Lonely Planet guide to Venezuela to hardy adventure travelers.
By contrast, the murder rate in cartel-haunted Juarez, Mexico, is 133 per 100,000, with Mexico's overall rate 8 per 100,000, about the same as Wichita, Kan. Colombia, fighting a narcoterror war since 1964, has an overall rate of 37 per 100,000, slightly higher than Baltimore at 36.9. The overall U.S. rate is 5.4.
Make no mistake, a murder rate like Caracas' is a crime against humanity. The absence of personal security renders all other human rights moot. By coincidence, that's just what Chavez seeks to eliminate as he turns his country into a Cuba-style socialist state. Instead of Castroite firing squads or Stalinesque gulags, Chavez outsources the dirty work of socialism to criminals while throwing dissidents in jail and threatening to censor newspapers.
He may try to suppress the Dante-like photos of corpses piled high at the Caracas morgue from the El Nacional newspaper, but the hard fact is that Chavez is responsible for what's going on.
"We'll have to cut police/fire/EMS" was just a threat to protect pork. Now, lots of agencies are really getting cut, and at some levels, the money just isn't there."
Agree, it went from a threat, to a tactic to a reality. When everything is top priority, nothing is. Most LE is local. One of our county commissioners likes to say 'don't tell me we don't have enough money' every time he sees one of these other crazy projects that go through. Not the obvious ones like the billion dollar ballpark that went through last year with a tax increase where the commissioners voted to waive the legal requirement to let the voters vote on it. Just couldn't trust the voters to do the right thing.
CCP, Choice "1- We can have a doctor and their patient decide what care to give/receive." - sounds kind of American to me, at least the America that I once knew. ---- Crafty, Over in The Way Forward I agreed whole-heartedly with this piece (GRACE-MARIE TURNER) and wanted to add that here. She is right on the money. Obama will not see new light and sign anything to do with repeal. These are some practical steps a new congress can do for roughly the same affect. De-fund, dismantle, delay, direct oversight and delegate to the states. ObamaPelosiCare is a choice that should be rejected at the state level and never was a power of the federal government.
IIRC the neutral budget required collecting taxes 4 years before providing services so that the 10 year plan falsely breaks even saying 10 years pays for 6. Instead of repealing, the new congress should set forward with a clean budget to their own priorities and just omit BS like that. There will be a Newt-like showdown coming and I hope they are ready to hold ground win that war of opinion.
The way forward includes inspirational leading, not in-fighting. I want to comment on the Gilder interview on interesting thought pieces here in terms of going forward. Gilder is brilliant yet I think we all learned to take him in with a grain of salt. As the analysis put it, I think he was a bit guarded and simplifying where he also can be loquacious.
I would include Gilder and Ron Paul, and VDH, Thomas Sowell, Karl Rove and plenty of others on my short list for input on how to lead, how to come together, and where to take this movement during this great opportunity, as it is still very vague in meaning and direction.
I agree with his criticism of Ron Paul' foreign policy views. I agree with him on tax rates. I think his insights about shifting the discussion to fostering human creativity is brilliant.
I also think a coalition between existing Republicans, conservatives, libertarians and center right moderates will come together politically only if we commit to cut and contain spending first. Within that framework I think we can also cut military costs without surrendering or disarming. I think we can reform entitlements if there is a will without starving the poor or pulling the plug on granny. I think we can refuse to allow raising tax rates in a recession or any other time since that isn't working. I think if we took congress we could reform the tax policy scoring mechanism at CBO, where I think Newt tried and failed, the model that always underscore pro-growth policies and disregards the contractionary effects of rate increases and regulation overload. I think we can put corporate tax rates at the median level of OECD instead of at the highest in western civilization. I think we can do ALL the things proposed in Crafty's piece today regarding ObamaCare, namely de-fund it and send it back to the drawing board. I doubt if we can do it but I would run with Paul Ryan's proposal that we put discretionary spending not to the stone age but back to the 2008 levels of the Pelosi congress and freeze it there until reforms of all the programs can be instituted. I think we could truly end earmarks and could win on that issue alone if anyone believe us. I think we can effectively contrast the last 4 supreme court picks and make a strong case to move all of our governing focus toward respecting constitutional limits on government.
Within that framework, we need to invite Ron Paul and all the people he has inspired to join and influence this movement, not to fight it. I also think Ron Paul needs to fade back a bit especially on things and trust the work he has already accomplished while his son is front and center asking to be trusted for an extremely important seat. You can't sweep swing states with any meaning if you can't win Kentucky.
I think Gilder's positive vision forward needs to overlay all of the root-canal work that need to be done first to make the full package a positive one. But I don't think you can inherit a situation that has spending at $4 trillion, revenues at 2.5 trillion and a deficit that is greater than half of revenues, in a debt crisis environment, and not attack spending head-on.
Speaking of affirmative action, I hear that DEA is hiring Ebonics translators to help with cases. I wonder if well-qualified whites and Asians will get their proportional share of the hirings (joking): http://news.yahoo.com/s/ap/20100823/ap_on_re_us/us_ebonics_dea It actually sounds like a good and necessary idea. LE needs to know what potentially criminal conversations captured with legal warrants mean, be able to explain translations to investigators and juries and they should be free to hire whoever does that best. The key will be to find the Ebonics experts who also knows English well enough to do that.
Reminds me of Hillary's start at State. She couldn't find anyone in the entire Dept. of civil servants and diplomats or from all her other contacts that knew enough Russian to get the word 'reset' translated correctly, besides that it was a stupid idea. I don't think Russians are having the same trouble translating from English the military secrets that they steal. A predecessor of hers humbly spoke fluent Russian all at the same cost to the taxpayer.
CCP, That gives me a nice understanding of how that works from your side and I'm sure you are as tough on them as anyone. Half of it being fraud or exaggeration, even if anecdotal is shocking, but lower than my estimate. The doctor's report should be the beginning of an application process. It should be descriptive not judgmental for the next step. He wouldn't conclude unfit to work, but he might say medium inflammation on the left ankle or the 7th vertebrae. For some the issue is mental health. The patient should not be asking the doctor for a work conclusion just a medical report. Screening and enforcement should in proportion to the resources we put into IRS. Then there should active followup to move people from unable to work to providing something back to society of value based on their capabilities.
Speaking of government spending, I have a true story from yesterday:
County emergency assistance approved and confirmed with me on the phone a thousand dollars of emergency money to be paid on behalf of my new tenants on the exact same day that the satellite dish installer confirmed with me on the phone the location of the new dish and the placement of the large screens throughout the house. Meanwhile I don't take paid TV because of the cost and because I am too busy to watch. The story is true. I have the address names and phone numbers. And it is not unique. Sorry for the generalization, but they all take cable or direct tv and the time that gets set up is on move-in, the same time that emergency assistance generally kicks in - every 6 months!
Instead of restricting things, we are advertising to get more clients into the programs.
Sidetracked by contract micro-details of local governments paying for REAL work, maybe we should next take a look at the myriad of transfer programs federal state and local that pay people to NOT work. One of the most abused that I see with my work in the inner city is SSI. There are times when I am studying rental applications for income and start to believe that everybody by me is getting a check.
It is hard to oppose paying small amounts, maybe 450 per month per adult, to the disabled, except when you find out that nearly everyone in certain neighborhoods is disabled, physically, mentally or otherwise. It makes sense from a distance until you see them carrying in some very large and heavy entertainment systems and expensive furniture for them to relax all day.
One way that they are able to get a note from their doctor is that they already getting free taxpayer paid healthcare so a doctor is only a taxpayer paid cab ride and waiting room visit away whenever you need one.
The cash payment goes ostensibly to pay for food, shelter and clothing except the same people here are also receiving food stamps, free clothing and often housing programs in addition to free unlimited healthcare. I would also observe that because of the cash and other basics free, and time on their hands because they are banned from working so these people tend to have larger budgets available for beer, pot and cigarettes than most of the rest of us might have.
CCP (and others), how is it that these doctors determine these able bodied looking adults unable to participate in 'substantial gainful activity' (while the real disabled such as those returning from foreign wars with missing limbs are not exactly floating in cash)?
http://en.wikipedia.org/wiki/Supplemental_Security_Income --- Another example I am finding is where people are paid by the government to take care of their own family member. It is a huge, huge scandal IMO. I will post more when I find out more like whether it is state, federal or county that is paying.
I think he thought I was joining the chorus who complain that civil servants have it cushy and make a boatload of money with time off etc. while he is out risking it all in tough situations sometimes like war and sometimes worse and barely breaking even. If Crafty had thought my words were offensive I don't think he would have passed them on. I never questioned our moderator's good faith on that or on posting the reply. He made the effort to get firsthand input and he made the effort coming back to add a fair warning label. My frustration was that thoughts so clear in my mind don't come out clearly after typed or received, because what he read was not at all what I was trying to say. Participating here for one thing is an attempt to work on that.
The friend at NYPD might also have thought the true numbers in total compensation are false because his own past and current paychecks don't look at all like that, especially if he has a spouse working and earning. I imagine he has an astonishing percentage of total pay taken from him before he sees it, good parts of that distributed to people like he runs across including the crackheads for example while his own bills remain challenging. As I re-posted from the earlier thought, I have no idea how to value things like climbing into a burning building (fire dept.), military or police work except to elect and trust representatives that can do what's right and attract and retain the best people they can within the fiscal constraints they face.
Unions like to negotiate salary, benefits and work rules as separate items. We should IMO negotiate the total compensation, then let the worker designate for him/herself how they would like it distributed.
From 'The Economist', which is not exactly my political cup of tea but good with international coverage, some insights and perspective on China and India which I don't wholly support but find to be a very worthwhile read.
A HUNDRED years ago it was perhaps already possible to discern the rising powers whose interaction and competition would shape the 20th century. The sun that shone on the British empire had passed midday. Vigorous new forces were flexing their muscles on the global stage, notably America, Japan and Germany. Their emergence brought undreamed-of prosperity; but also carnage on a scale hitherto unimaginable.
Now digest the main historical event of this week: China has officially become the world’s second-biggest economy, overtaking Japan. In the West this has prompted concerns about China overtaking the United States sooner than previously thought. But stand back a little farther, apply a more Asian perspective, and China’s longer-term contest is with that other recovering economic behemoth: India. These two Asian giants, which until 1800 used to make up half the world economy, are not, like Japan and Germany, mere nation states. In terms of size and population, each is a continent—and for all the glittering growth rates, a poor one.
This is uncharted territory that should be seen in terms of decades, not years. Demography is not destiny. Nor for that matter are long-range economic forecasts from investment banks. Two decades ago Japan was seen as the main rival to America. Countries as huge and complicated as China can underachieve or collapse under their own contradictions. In the short term its other foreign relationships may matter more, even in Asia: there may, for instance, be a greater risk of conflict between rising China and an ageing but still powerful Japan. Western powers still wield considerable influence.
So caveats abound. Yet as the years roll forward, the chances are that it will increasingly come down once again to the two Asian giants facing each other over a disputed border (see article). How China and India manage their own relationship will determine whether similar mistakes to those that scarred the 20th century disfigure this one.
Neither is exactly comfortable in its skin. China’s leaders like to portray Western hype about their country’s rise as a conspiracy—a pretext either to offload expensive global burdens onto the Middle Kingdom or to encircle it. Witness America’s alliances with Japan and South Korea, its legal obligation to help Taiwan defend itself and its burgeoning friendships with China’s rivals, notably India but also now Vietnam.
This paranoia is overdone. Why shouldn’t more be asked from a place that, as well as being the world’s most-populous country, is already its biggest exporter, its biggest car market, its biggest carbon-emitter and its biggest consumer of energy (a rank China itself, typically, contests)? As for changing the balance of power, the People’s Liberation Army’s steady upgrading of its technological capacity, its building of a blue-water navy and its fast-developing skills in outer space and cyberspace do not yet threaten American supremacy, despite alarm expressed this week about the opacity of the PLA’s plans in a Pentagon report. But China’s military advances do unnerve neighbours and regional rivals. Recent weeks have seen China fall out with South Korea (as well as the West) over how to respond to the sinking in March, apparently by a North Korean torpedo, of a South Korean navy ship. And the Beijing regime has been at odds with South-East Asian countries over its greedy claim to almost all of the South China Sea.
India, too, is unnerved. Its humiliation at Chinese hands in a brief war nearly 50 years ago still rankles. A tradition of strategic mistrust of China is deeply ingrained. India sees China as working to undermine it at every level: by pre-empting it in securing supplies of the energy both must import; through manoeuvres to block a permanent seat for India on the United Nations Security Council; and, above all, through friendships with its smaller South Asian neighbours, notably Pakistan. India also notes that China, after decades of setting their border quarrels to one side in the interests of the broader relationship, has in recent years hardened its position on the disputes in Tibet and Kashmir that in 1962 led to war. This unease has pushed India strategically closer to America—most notably in a controversial deal on nuclear co-operation.
Autocrats in Beijing are contemptuous of India for its messy, indecisive democracy. But they must see it as a serious long-term rival—especially if it continues to tilt towards America. As recently as the early 1990s, India was as rich, in terms of national income per head. China then hurtled so far ahead that it seemed India could never catch up. But India’s long-term prospects now look stronger. While China is about to see its working-age population shrink (see article), India is enjoying the sort of bulge in manpower which brought sustained booms elsewhere in Asia. It is no longer inconceivable that its growth could outpace China’s for a considerable time. It has the advantage of democracy—at least as a pressure valve for discontent. And India’s army is, in numbers, second only to China’s and America’s: it has 100,000 soldiers in disputed Arunachal Pradesh (twice as many as America will soon have in Iraq). And because India does not threaten the West, it has powerful friends both on its own merits and as a counterweight to China.
A settlement in time
The prospect of renewed war between India and China is, for now, something that disturbs the sleep only of virulent nationalists in the Chinese press and retired colonels in Indian think-tanks. Optimists prefer to hail the $60 billion in trade the two are expected to do with each other this year (230 times the total in 1990). But the 20th century taught the world that blatantly foreseeable conflicts of interest can become increasingly foreseeable wars with unforeseeably dreadful consequences. Relying on prosperity and more democracy in China to sort things out thus seems unwise. Two things need to be done.
First, the slow progress towards a border settlement needs to resume. The main onus here is on China. It has the territory it really wants and has maintained its claim to Arunachal Pradesh only as a bargaining chip. It has, after all, solved intractable boundary quarrels with Russia, Mongolia, Myanmar and Vietnam. Surely it cannot be so difficult to treat with India?
That points to a second, deeper need, one that it took Europe two world wars to come close to solving: emerging Asia’s lack of serious institutions to bolster such deals. A regional forum run by the Association of South-East Asian Nations is rendered toothless by China’s aversion to multilateral diplomacy. Like any bully, it prefers to pick off its antagonists one by one. It would be better if China and India—and Japan—could start building regional forums to channel their inevitable rivalries into collaboration and healthy competition.
Globally, the rules-based system that the West set up in the second half of the 20th century brought huge benefits to emerging powers. But it reflects an out-of-date world order, not the current global balance, let alone a future one. China and India should be playing a bigger role in shaping the rules that will govern the 21st century. That requires concessions from the West. But it also requires commitment to a rules-based international order from China and India. A serious effort to solve their own disagreements is a good place to start.
Coming off my fight with NYPD and what I don't know about what they do and how expensive it is to live there, which is true, may I point out that people in Washington DC have no idea about private sector work and pay across the heartland either. Short of forced labor camps etc. they should not be concerned about what free people pay each other with legislation like minimum wage and other mandates.
GM linked a story on the Govt Spending thread that NYPD would pay $80,000 to train a police officer and then a competing department elsewhere hires them away and saves the expense. That happens in the private sector too. There should be no mandate that companies pay people to be trained or pay certain amounts before they are providing a positive value to the organization. Consenting adults can work out private contracts amongst themselves. Once the employee is of good value to the organization then seldom is there any need for protection from the government anyway. People can vote with their feet and leave and spread the word about which companies are lousy to work for.
Employers shouldn't face minimums to pay people who make substantial tips. At the high end we shouldn't be basing any public policies on tyrannical views like that is enough money - no one needs more money than xxx. We shouldn't be mandating what programs people's own pay gets put into other than their paycheck. It is a violation of their economic freedom. Unions that do that are not always doing their members a favor. Maybe they make 3% on an investment account while they are paying 20% on a credit card or late on their mortgage.
Even with the taxes we pay the withholding should not be mandatory before a taxpayer even knows what their deductions and credits for the year will be. It is enough for them to mandate the filing and require the payment. They have enough power to enforce that without mandatory withholding.
Besides minimum wage laws, there are also maximum wage proposals out there, that a company for example cannot pay anyone more than 20 times what the lowest person in the organization is paid. The concept is a violation of your economic liberties and violates common sense. In our town and MVP like Joe Mauer might make 20 million so should there be a law that the lowest batboy make a million? If you are in Washington and think so then you don't understand the dynamics of markets or baseball, which means you don't understand the business of any other industry either. Yet they want caps on bank fees and anything other gripe that people want the government to intervene on. These proposals are gaining steam with the infusion of government money into private company ownership, like the 3 CEO changes at Government Motors. These infusions are a violation of the economic rights of the competitor to operate freely and fairly on a level playing field
Groups should not be targeted for taxation, like the top 1%, the top 2% or 'only those making over 200,000'. Taxation to pay for public goods should be applied evenly across people and across income. The right to keep the rest of what you earned, other than taxes at the rate everyone is taxed at, is a basic human liberty whether you are rich or not. When they chip away at one group and then another, they are chipping away at you.
Short of things like pouring mercury into ground water and forced labor camps, they need to start respecting people's economic liberties and allow us to run our own businesses and make our own economic decisions. Believe it or not, we can do it better ourselves.
Crafty, I don't suppose you quoted to him what I wrote earlier this week (next two paragraphs) on the same subject which might have helped him to understand in context that I was not saying anyone is overpaid or anyone is underpaid. Where in my post did I write that anyway? I don't have a dog in their fight and I didn't claim to know about their organization. I quoted exact words from their website. I was mostly making the point that 25k posted here is not 45k and we really are talking about roughly a 100k job (Not take home, but total compensation) by the time you get 5 years up to speed and I am still not saying that 100k is a lot of money for what a good cop in NYC does. At the 100k level they probably see well under half of that in take home pay and that is one problem but again I was not judging the value of their work. If he was offended my statement that if the spouse is a school teacher then you are approaching punishable wealth, a little good detective work would tell him quickly that was totally political tongue in cheek because if you took any context to my posts you would know that I don't think 100 million or 500 trillion is punishable wealth, much less 200k or 25k or 45k or 91k. I think all honestly earned wealth is good and there is no question that good cops deserve serious pay.
Aug. 16. 2010 I wrote: "I wouldn't want to judge the real value of what anyone does, the danger that military, fire or police officers face, nor would they want to pay full value for my sacrifices and dangers as an inner city landlord. We get what the market will bear and what it will take to get the right person to come in and do the job.
What I hate is when they disguise or deny the money we pay. Telling us a teacher makes 50 or 60k when we pay out 90k because they aren't counting the deferred money or the benefits as pay. It is all pay. If they want portions of their pay in forced savings, health benefits, pension funds, taxes or anything else, that is their business."
THAT was my point, that pay is pay. It all counts, even if it is low and even if major parts of it go to benefits or accounts in their name and don't show in a current paycheck, and to taxes. How can we begin to judge the money if we can't say accurately what the money is and I was miffed at the original post for putting that information out wrong in my opinion.
For all the insults, "macdoug or whatever his name is does not know what he's talking about", "people like this make me laugh", I didn't see anyone point out a fact that I posted wrong. I assume he did not go to the link I twice provided where all the pay figures I posted came from.
Your friend wrote: "The first 5 years I was on the job I would put my life on the line, then come home and decide what bill I was going to skip."
Sounds like his interests may not have been well served by having more than half of his money earned not be in his paycheck those early years due to inflexible union contracts, benefits and deferrals and high taxes which go more to transfer payments (including the crackheads) than toward real public services like good police work. Unfortunately I don't think he read that far into my post.
The remark about private sector comparisons in interesting. In return there are civil servants who might not always count deferred compensation or benefits as pay because they think everyone gets them. I will tell you, 'Trust me, we don't'.
The interesting part of this to me from a public policy point of view is the PROCESS of how compensation is set. It is not at all about me judging the risk, danger or value of someone else's work from a thousand miles away.
Nothing in that story ("hundreds of city cops, many of them rookies") tells us how many of those completed the 20 years and are PAID to leave, nor does the term hundreds out of 35,000 tell us anything significant. Still, if essential jobs go unfilled, the pay plan will be upped - and it was. The combination of both stories tells us that the process of setting and adjusting those payscales is 'horrific'.
GM, Did you mean to quote a 'starting salary' and then refer to it as "this pay is horrific" when in fact the salary quoted ("this pay") was just over half of current total pay and only for the training period. The pay within just 5.5 years is nearly 4 times what was quoted and likely more with some overtime. (The story quoted without link or date was from May 20, 2008, more than 2 years ago: http://www.policeone.com/patrol-issues/articles/1696920-NYPD-gets-pay-raise/ )
Welcome to civil service. We hear how little they make without learning honestly or accurately hearing how much they make. Little things like recent increases, healthcare paid and other monies put into an account with their name on it don't really count. NYPD link: http://www.nypdrecruit.com/NYPD_BenefitsOverview.aspx
But once again, the problem with government budgets in NYC and America is not the cost of governing like paying police what is needed to get the job done. The problem is that the majority of government expenditures go to transfer payments for no service at all, NOT to pay for real public services like police work.
"NYC has a far, far higher cost of living than elsewhere."
Agree. I was teasing GM a bit, but as I posted previously - I hate when they tell you the pay is X when the real pay is Y. Starting salary is MISLEADING. In government-speak, 25k for 1st year police work is really 45k to go to school - police academy: http://www.nypdrecruit.com/NYPD_BenefitsOverview.aspx And after 5.5 years that becomes 91k. Add a school teacher spouse to that and it takes you into the area we now call punishably rich. I don't know about police academy attendees, but trainees in business are not particularly valuable. But 91k in 5 years for working 11 months of the year including paid medical, unlimited full paid for sick half pay for life for working 20 years is not something to sneeze at in this economy.
Not included in the 'salary': overtime pay, plus * 10 Paid vacation days during first & second year * 13 Paid vacation days during third, fourth & fifth year * 27 Paid vacation days after 5 years of service * Unlimited sick leave with full pay * A choice of paid medical programs * Prescription, dental, and eyeglass coverage * Annuity fund * Deferred Compensation Plan, 401K and I.R.A. * Optional retirement at one half salary after 20 years of service * Annual $12,000 Variable Supplement Fund (upon retirement) * Annual banking of $12,000 Variable Supplement Fund after 20 years of service (if not retiring) * Excellent promotional opportunities * Educational opportunities * Additional benefits are available to military personnel.
Looks to me like they know how to recruit. Unlike private business, you can't stay at the entry level. After 5 years and with a little overtime the officer makes over 100k for working 11 months of the year. I'm not saying that is overpaid; I'm saying it's not a 25k job, the jobs are not going unfilled and the people are paying a high cost of living by choice.
"The NYPD has been casting its net far and wide in search of recruits."
That sounds like common sense. Still essential jobs are not going unfilled. If they do, then pay goes up- by public choice instead of union and labor board panels. ----- Speaking of cost of living, it's funny how the social extremists keep telling the happy people who moving to the x-urbs that we all need to get more urbanized, live in greater density, that it is far more efficient to live close together and too costly to run a water or sewer pipe an extra mile or two out to the edge of town. What a bunch of B.S.
GM, I did a Google search of "NYPD jobs go unfilled" and amazingly got zero hits. That work is so fun and rewarding that people will do it without pay. Are you counting a free gun, free uniform and squad car usage in that 25k?
Great post / analogy Crafty! Our economy burdened with mandates, taxes, spending and regulations is so obese that we cannot reach down to tie our own shoes. Posted under govt. spending is the new analysis that the public sector is eating up 63.4% of the resources available in the economy. Answer: more spending, seriously. It does not even mischaracterize the thought process of the ruling regime and their thought leaders. Amazingly, the same day you posted Dr. Hayek and Dr. Keynes, Paul Krugman wrote another column poking fun at "austerians" and calling for even more government largess - I kid you not.
Dr. Krugman, we are not worshipping the bond Gods, we are just noticing and frightened by the fact that the public sector is consuming all of the oxygen in the room. If we are living beyond our needs today, we will necessarily be living BENEATH our means tomorrow. The current budget is $4 trillion, $2.5 trillion in revenues, 1.5 trillion in new debt added per year, with accumulating interest. To spend below $4 trillion would be "human sacrifice". The economic growth we have acquired from this Keynesian stimulus is ZILCH, well below the 3.1% or so that the economy requires. I think this is one of those math or word problems where the uncluttered mind of a kindergardner can answer it more accurately than a Nobel prize winning economist - with an agenda. Note where Obama gets his straw man argument style from, if we cut back (at all) on government spending it means we are giving up on job creation!
As I look at what passes for responsible economic policy these days, there’s an analogy that keeps passing through my mind. I know it’s over the top, but here it is anyway: the policy elite — central bankers, finance ministers, politicians who pose as defenders of fiscal virtue — are acting like the priests of some ancient cult, demanding that we engage in human sacrifices to appease the anger of invisible gods.
Hey, I told you it was over the top. But bear with me for a minute.
Late last year the conventional wisdom on economic policy took a hard right turn. Even though the world’s major economies had barely begun to recover, even though unemployment remained disastrously high across much of America and Europe, creating jobs was no longer on the agenda. Instead, we were told, governments had to turn all their attention to reducing budget deficits.
Skeptics pointed out that slashing spending in a depressed economy does little to improve long-run budget prospects, and may actually make them worse by depressing economic growth. But the apostles of austerity — sometimes referred to as “austerians” — brushed aside all attempts to do the math. Never mind the numbers, they declared: immediate spending cuts were needed to ward off the “bond vigilantes,” investors who would pull the plug on spendthrift governments, driving up their borrowing costs and precipitating a crisis. Look at Greece, they said.
The skeptics countered that Greece is a special case, trapped by its use of the euro, which condemns it to years of deflation and stagnation whatever it does. The interest rates paid by major nations with their own currencies — not just the United States, but also Britain and Japan — showed no sign that the bond vigilantes were about to attack, or even that they existed.
Just you wait, said the austerians: the bond vigilantes may be invisible, but they must be feared all the same.
This was a strange argument even a few months ago, when the U.S. government could borrow for 10 years at less than 4 percent interest. We were being told that it was necessary to give up on job creation, to inflict suffering on millions of workers, in order to satisfy demands that investors were not, in fact, actually making, but which austerians claimed they would make in the future.
But the argument has become even stranger recently, as it has become clear that investors aren’t worried about deficits; they’re worried about stagnation and deflation. And they’ve been signaling that concern by driving interest rates on the debt of major economies lower, not higher. On Thursday, the rate on 10-year U.S. bonds was only 2.58 percent.
So how do austerians deal with the reality of interest rates that are plunging, not soaring? The latest fashion is to declare that there’s a bubble in the bond market: investors aren’t really concerned about economic weakness; they’re just getting carried away. It’s hard to convey the sheer audacity of this argument: first we were told that we must ignore economic fundamentals and instead obey the dictates of financial markets; now we’re being told to ignore what those markets are actually saying because they’re confused.
You see, then, why I find myself thinking in terms of strange and savage cults, demanding human sacrifices to appease unseen forces.
And, yes, we are talking about sacrifices. Anyone who doubts the suffering caused by slashing spending in a weak economy should look at the catastrophic effects of austerity programs in Greece and Ireland.
Maybe those countries had no choice in the matter — although it’s worth noting that all the suffering being imposed on their populations doesn’t seem to have done anything to improve investor confidence in their governments.
But, in America, we do have a choice. The markets aren’t demanding that we give up on job creation. On the contrary, they seem worried about the lack of action — about the fact that, as Bill Gross of the giant bond fund Pimco put it earlier this week, we’re “approaching a cul-de-sac of stimulus,” which he warns “will slow to a snail’s pace, incapable of providing sufficient job growth going forward.”
It seems almost superfluous, given all that, to mention the final insult: many of the most vocal austerians are, of course, hypocrites. Notice, in particular, how suddenly Republicans lost interest in the budget deficit when they were challenged about the cost of retaining tax cuts for the wealthy. But that won’t stop them from continuing to pose as deficit hawks whenever anyone proposes doing something to help the unemployed.
So here’s the question I find myself asking: What will it take to break the hold of this cruel cult on the minds of the policy elite? When, if ever, will we get back to the job of rebuilding the economy?
When Happy Cost of Government Day hits so late it spills over into Ramadan we really should start noticing that we have a problem. (Speaking of religious holidays, polls say more people are looking forward to November 2nd than December 25th this year.)
The nice thing about Happy Cost of Government Day falling on August 19 is that now you are good to go. Everything you make from today August 20th on until the end of the year is yours to spend anyway that you like - like maybe a little food for the family, a new pair of shoes or maybe a bicycle for one of the kids.
You people calling it all socialism just because you work 8 months for the government are over-reacting. For the next 4 months, it's all yours. Get out and enjoy it! For the way our nation has been voting and governing we are lucky to keep one day's earnings in a year.
Cost of Government Day Finally Arrives on August 19, 2010
Every year, the Americans for Tax Reform Foundation and the Center for Fiscal Accountability calculate Cost of Government Day. This is the day on which the average American has earned enough gross income to pay off his or her share of the spending and regulatory burdens imposed by government on the federal, state, and local levels.
In 2010, Cost of Government Day falls on August 19. That means working people must toil 231 days out of the year just to meet all costs imposed by government. In other words, the cost of government consumes 63.41 percent of national income.
“Two years ago Americans worked until July 16 to pay for the cost of government: all federal, state and local government spending and regulatory costs. That government was too expensive and wasteful. Two years later, we work until August 19 for the same bloated government. We have lost an additional full month of our income to pay the cost of government in just the last two years,” said Grover Norquist, president of Americans for Tax Reform.
Watch for these liberal pretend economist arguments to slip into the political debate in your own congressional districts and senate races. As Reich puts it: "supply-side economics won't create jobs. It's pushing on a wet noodle. Businesses create jobs only if consumers are pulling the noodle from the other end." Corporations are sitting on plenty of cash but won't hire with it. Tax cuts won't help that he argues. In reality he means tax rate increases that are coming won't make it that much worse...
First of all, the publicly traded companies of Dow and NASDAQ are not the small businesses of America that will generate the next expansion.
Reich forgets that a good part of our existing demand is used up purchasing foreign made products and services because the climate and cost and regulatory structure are prohibitive. And too much of the demand elsewhere in the world is directed toward also purchasing non-USA products where we once were the leaders.
Some of our hiring is held up by the uncertainty of future costs and penalties associated with new healthcare requirements, ccap and trade energy restrictions, tax increases, property tax increases, energy cost increases and who knows what else might be coming down the pike between now and when this anti-business, anti-freedom, anti-growth crowd loses their power. Tax cuts alone do not make up a 'supply side' policy. The regulatory maze and the flood of public spending competing for resources are big parts of the puzzle also.
You can't tell me that pro-growth policies that would bring unemployment down from 10% back to 5% would not increase consumer demand and business product and services in this country. You cannot convince me that making it easier and less costly to hire and produce here would not shift some production to here and some consumer purchasing to American goods and away from the foreign competitor. You cannot even convince me that even if all the sales of new production here went to overseas markets that the money coming back wouldn't provide a burst and a boost to our own economy our own demand and lead to new hiring. You cannot tell me that lowering corporate tax rates from the highest in the world of western civilization to the median of the OECD countries would not have an affect on keeping and attracting new jobs to our economy.
What Mr. Reich needs to do is first get all the parties in power such as Obama, Pelosi, Valerie Jarret and Van Jones (is he still around?) to at least admit and declare publicly that real economic growth is a public good of value, not something to be attacked, before we can seriously argue out what is the best set of policies to achieve it.
Currently the US Dollar is within about 5% of its all-time historic low. You cannot convince me that this would not be a perfect time to be selling Made-in-USA goods all around the globe - if only we were still producing anything.
Boyo, I agree that an Ann Coulter event deserves the same type of protections. Shouting her down is not any kind of free speech, just a violation of someone else's rights. Even the John Bush affair wasn't about what he could say, it was about where. A campus that hires 95% liberals needs to understand that outside speakers will be required to offer any kind of balance. I frankly despise having to frequent conservative-bias sites to get the even the facts of most stories much less a conservative take, while liberals seem comfortable to build and maintain a bubble of protection around them from other views, seldom curious about why half (or more) of our society might think differently than they do.
Private Universities can rise and fall on their own reputation. There is no excuse for supporting the use of public funds in these public universities (or K-12) that won't end the indoctrination described in the documentary. --- Update on John Bush from his own site: "Bush was held on a criminal trespass charge, a class B misdemeanor, in the Travis County jail Monday evening. He was subsequently released, and made several media appearances on Tuesday." http://tagtexas.org/ --- The pie thrower who hit Sen Carl Levin D-Mich. was arrested and charged with a felony. http://womc.radio.com/2010/08/18/accused-levin-pie-thrower-jailed/ --- To the protesters on both sides, the idea isn't to persuade or confront your opponents; the point is to organize and defeat them politically.
I'm glad it was appreciated. Really just hollow words though without the followup video made possible by the policies of his successor and the American military; Saddam Hussein's hanging is at about the 1:37 mark of this clip12/30/2006:
In both cases you would think the availability of google, youtube and camcorders everywhere would begin to persuade world leaders to behave better.
"a strong case can be made that China is a huge bubble. Furthermore its unique demographic profile presents deep questions."
During the last expansion here, we had more GDP growth in part of a decade than they have in total GDP. China cut a corporate tax rate (Jan.2008) that was already below ours, right as our taxes were promised to get worse and right as our economy was starting to tank and needing the same type of real production stimulus. Their economy is more dependent on ours than ours is on theirs, IMO. If they outperform us going forward, the fault is all our own. They have had phenomenal growth but as Crafty hints, there is plenty wrong in China.
A healthy Chinese economy and a growing world middle class is a healthy thing for the U.S. economy, assuming we also choose to engage and compete, except for the aspect and the extent to which they are military enemies of us.
Looks to me like the Univ. of Texas administrators were trying to balance these rights, the students, the security of a Presidential visit, accommodate but contain the protest, etc. and just got it wrong in the sense of overly restricting the protest. The police were determined to enforce the rule but seemed like they were trying very hard not to further cause the situation to escalate.
OTOH, these campus restrictions and protest restrictions are not wholly the same thing as losing your right to free speech. In both the example of the GOP convention that I gave and with the Obama visit, the protesters are piggybacking off of the popularity of the main event. Yet they still have the same right to book the same convention center, bring 50,000 of their own people in, speak to their hearts' content, sell the networks on the idea of coverage or broadcast their own message out, even form a party, endorse a ticket and get their names on the ballot. At Univ. Texas, same thing. I assume John Bush could rent an auditorium on campus, host an event, get a park permit for an event somewhere in town, draw his own crowd and speak all day on anything short of inciting violence. To some extent the protesters are trying to take something away from the scheduled event - the easy way out - instead of throwing their own event and taking on the burden of drawing their own crowd and putting out their own message.
"service members who are in the lower 3 ranks with kids can qualify for some welfare programs" Of course it shouldn't be that way but there are some factors to consider: a) a lot of their compensation is deferred, b) a significant part is not counted as income such as education benefits, housing, food, medical care, etc. c) our social welfare programs are screwed up so qualifying doesn't for sure mean you are poor, and d) there is some market aspect to military recruiting - they have budget constraints but they have to come up with packages sufficient to recruit the numbers needed in the ranks.
Very interesting Strat, as always. Seems to me they exaggerate our goal number 3, ending with a pro-American government. Pro-American is a little hard to arrange. We would I think settle for anything that involves stability, self-determination and not actively planning (or harboring) attacks against American interests.
Iran is a key player and factor but I wonder if Stratfor overestimates how much the Iraqis, even Shia, want to be controlled by Iran.
Iran has some stability issues of its own with 70 million oppressed people. The USA by now should have some covert destabilization contingency plan of its own ready to deploy in Iran, short of an invasion. In Iraq it was the previous Dem administration in 1998, candidate Gore in 2000 as well as many inconsistent, antiwar Democrats of the 2000s who kept alleging that "regime change" policy did not mean all-out military invasion. Similarly could be covert destabilization efforts could be launched or threatened within Iran. Even if unsuccessful, they could keep the tyrannical regime busy with problems of its own. Here is Clinton '98 discussing efforts to destabilize Iraq toward regime change:
For all the talk by Obama and his cronies about political rather than military solutions in conflicts, in Iraq it is the military effort succeeding and the political situation failing at the moment, yet he has his ace number one chief diplomat HRC assigned elsewhere. If I were President Barack "I have a Gift" Obama, friend of all Arabs and Muslims, I would send myself to the negotiating table (the photo-opp of the century) and sit down now with all the factions, here them all out and then settle the issues, letting each side believe that they won all they could win in the negotiations for power.
After we leave and destabilization comes back and spreads across the country, that opportunity to negotiate and settle power may never again be possible.