They call it Riding the Gravy Train

It recently came to every one’s attention that many members of congress are dealing with legislation while owning stocks that will soar depending on the results of that legislation.  We’ve even found out that Eric Cantor bet against the country while  stalling legislation designed to increase the US debt level.

In academic studies from the Journal of Financial and Qualitative Analysis, statistically significant results demonstrate that both Republican and Democratic politicians are outperforming the market, with the Democrats enjoying a whopping 9 percent annual outperformance. Senators were the biggest winners, displaying Houdini-like magic and beating the S&P by 12 percent annually. These results are not due to luck or financial acumen, but are rather the result of trades based on non-public information that these politicians are privy to in closed-door sessions. For the rest of us hard-working and investing Americans, this type of advantage is called insider trading.

Obviously, behavior that is criminal for everyday Americans should not be okay for lawmakers who have the power to gin up laws that affect companies while simultaneously keeping an eye on their own spreadsheets and brokerage accounts. Sadly, however, this is in fact the case.

Congressional immorality seems to extend beyond this insider debacle. Recent reports have revealed that Countrywide provided special VIP loans with publically unavailable discounted interest rates to representatives. There was even a rumor this past month concerning student loans given to congressional family members that are later forgiven. Further research by Snoops.com and others revealed that these forgiven student loans are just for a limited group of staff members who work for our elected officials. Well, there you go; finally some moral fiber. It leaves those of us struggling to get our retirement portfolios on track to wonder if there is a way to pick up one of these staff member positions, or better yet become a lawmaker to get to the real juice.

We now have additional news that the global recession seems to have eroded the net worth of every one but the congress.

Largely insulated from the country’s economic downturn since 2008, members of Congress — many of them among the “1 percenters” denounced by Occupy Wall Street protesters — have gotten much richer even as most of the country has become much poorer in the last six years, according to an analysis by The New York Times based on data from the Center for Responsive Politics, a nonprofit research group.

Congress has never been a place for paupers. From plantation owners in the pre-Civil War era to industrialists in the early 1900s to ex-Wall Street financiers and Internet executives today, it has long been populated with the rich, including scions of families like the Guggenheims, Hearsts, Kennedys and Rockefellers.

But rarely has the divide appeared so wide, or the public contrast so stark, between lawmakers and those they represent.

The wealth gap may go largely unnoticed in good times. “But with the American public feeling all this economic pain, people just resent it more,” said Alan J. Ziobrowski, a professor at Georgia State who studied lawmakers’ stock investments.

There is broad debate about just why the wealth gap appears to be growing. For starters, the prohibitive costs of political campaigning may discourage the less affluent from even considering a candidacy. Beyond that, loose ethics controls, shrewd stock picks, profitable land deals, favorable tax laws, inheritances and even marriages to wealthy spouses are all cited as possible explanations for the rising fortunes on Capitol Hill.

What is clear is that members of Congress are getting richer compared not only with the average American worker, but also with other very rich Americans.

The founders of this country came very much from the landed gentry and bourgeois merchant class that had a great deal at stake in the revolution.  Their businesses were severely restricted by government monopolies granted to royal favorites. They were forced to pay the costs to garret troops and were taxed on items to support favored businesses.  Yes, most of those patriots were exceptionally educated and wealthy by the standards of colonial America.  It wasn’t until much later that representatives found that they could use their offices and the legislation to their advantage.  We’ve had many scandals involving graft and congress.  We have not, however, seen congress become a systematic path to wealth until recently.  There is terrible injustice in this.

Between 1984 and 2009, the median net worth of a member of the House more than doubled, according to the analysis of financial disclosures, from $280,000 to $725,000 in inflation-adjusted 2009 dollars, excluding home ­equity.

Over the same period, the wealth of an American family has declined slightly, with the comparable median figure sliding from $20,600 to $20,500, according to the Panel Study of Income Dynamics from the University of Michigan.

The comparisons exclude home equity because it is not included in congressional reporting, and 1984 was chosen because it is the earliest year for which consistent wealth statistics are available.

The growing disparity between the representatives and the represented means that there is a greater distance between the economic experience of Americans and those of lawmakers.

There are things that could be done to stop  this.  The problem, however, is tha the foxes are in charge of the hen house.  There is legislation proposed to stop insider trading by congress.  Creepy Eric Cantor is blocking this.  There is legislation to separate the political class from their corporate donor teats.  Bernie Saunders has proposed a constitutional amendment to remove the power of SuperPacs in his “Saving American Democracy Amendment”.

Something really needs to be done about this


Tuesday Reads: Dark Ages America

The Georgia Guidestones — supposedly a roadmap for “Agenda 21”

Good Morning! Yesterday I read a (for me) mind-blowing article by Joshua Holland at Alternet about how right wing conspiracy theories are endangering the future of humanity. The main focus of the article is on Tea Party members and other right wing extremists who are obsessed with “Agenda 21,” a United Nations initiative begun at a conference on environmental sustainability in Rio de Janeiro in 1992 and signed by hundreds of world leaders, including President George W. Bush. This was all completely new to me, so I looked around to see what I could find out about it. Here is the gist:

Agenda 21, the international plan of action to sustainable development, outlines key policies for achieving sustainable development that meets the needs of the poor and recognizes the limits of development to meet global needs. Agenda 21 has become the blueprint for sustainability and forms the basis for sustainable development strategies. It attempts to define a balance between production, consumption, population, development, and the Earth’s life-supporting capacity. It addresses poverty, excessive consumption, health and education, cities and agriculture; food and natural resource management and several more subjects.

Its 40 chapters are broken up into four sections:

1. Social and economic dimensions: developing countries; poverty; consumption patterns; population; health; human settlements; integrating environment and development.

2. Conservation and management of resources: atmosphere; land; forests; deserts; mountains; agriculture; biodiversity; biotechnology; oceans; fresh water; toxic chemicals; hazardous, radioactive and solid waste and sewage.

3. Strengthening the role of major groups: women; children and youth; indigenous peoples; non-governmental organizations; local authorities; workers; business and industry; farmers; scientists and technologists.

4. Means of implementation: finance; technology transfer; science; education; capacity-building; international institutions; legal measures; information.

The full report (300+ pages) is here (PDF).

Apparently, fears about U.N. Agenda 21 are the basis for Michele Bachmann’s campaign against energy efficient light bulbs and for Bachmann’s and other right wingers’ drive to eliminate the Environmental Protection Agency. Here’s Bachmann, quoted in an article by Tim Murphy in Mother Jones:

“This is their agenda—I know it’s hard to believe, it’s hard to fathom, but this is ‘Mission Accomplished’ for them,” she said of congressional Democrats. “They want Americans to take transit and move to the inner cities. They want Americans to move to the urban core, live in tenements, [and] take light rail to their government jobs. That’s their vision for America.”

And here is Murphy’s explanation for the light bulb obsession:

Although she didn’t say it right then, Bachmann likely had something specific in mind: Agenda 21, a two-decade-old United Nations agreement that has taken on a life of its own on the far-right. The agreement, forged in 1992, nominally committed signatories to a set of shared values designed to mitigate the environmental impact of human development. Member countries agreed to a range of sustainability goals, from preserving the ozone layer to ensuring that forests are managed so they’ll be around for future generations. (The United States is a signatory, but the treaty has not been ratified by the Senate.)

But to some conservatives, Agenda 21 became something far more nefarious—a gateway to a global government built on a radical doctrine of secular environmentalism.

As these conservatives saw it, the agreement paved the way for the entire planet to be controlled by a central bureaucracy: Humans would be cleared out of vast swaths of settled areas—like the Upper Peninsula of Michigan, for example—and instructed to live in “hobbit homes” in designated “human habitation zones” (two terms embraced by tea party activists). Public transportation would be the only kind of transportation, and governments would force contraception on their citizens to control the population level. A human life would be considered no more significant than, say, that of a manatee. “Sustainability,” the idea at the heart of the agreement, became a gateway to dystopia.

Can you believe it? If you google “Agenda 21,” you’ll find scads of crazy stuff about it all over the internet. Bachmann recently answered questions about Agenda 21 in New Hampshire. She explained that Al Gore, who is apparently the Antichrist to the Agenda 21 freaks, was {gasp!} at the conference in Rio back in 1992.

Al Gore was there at the Rio Conference and the whole goal is really about global control.
It’s essentially a one world government view where there’s political body and the United States would have to subsume our sovereignty into a global body, but more than that, we would also have to give away our wealth.

So the wealth of the United States would be redistributed to other countries.
As a matter of a fact, that’s what the Durban Conference was about in South Africa this weekend, also about redistribution of American money.

These people truly live in a different reality than you and I. Unfortunately, they want to make their reality our reality too.

Ron Paul is also a hero to the Agenda 21 freaks. Here’s an announcement at the Connecticut Ron Paul for President website.

Agenda 21 is Coming to your Neighborhood!

SOUNDS LIKE SCIENCE FICTION…OR SOME CONSPIRACY THEORY…BUT IT ISN’T.

By now, most Americans have heard the terms “sustainable development” and “smart growth” but are largely unaware of UN Agenda 21. While many people support the United Nations for its peacemaking efforts, Agenda 21 is a whole life plan that involves the educational system, the energy market, the transportation system, the governmental system, the health care system, food production, and more. The plan is to restrict your choices, limit your funds, narrow your freedoms, and take away your voice.

FREE ADMISSION

Sponsored by Campaign for Sound Money and The John Birch Society

Getting back to the article in Alternet that I began with, Joshua Holland writes:

The important thing to understand about Agenda 21 is that there is absolutely nothing binding or compelling member countries to implement any part of it. It’s not a treaty — it is entirely voluntary and certainly doesn’t have any connection to local governments. Yet for the right, with its long John Birch Society undercurrent of paranoia about international institutions, Agenda 21 represents some kind of dark UN conspiracy to impose socialism on the “free world.” ….

Last year, during the Denver mayoral race, Tea Party candidate Dan Maes argued that a local bike-sharing program, a popular initiative among city residents, was a “very well-disguised” part of a plan by then-Denver mayor (and now Colorado governor) John Hickenlooper for “converting Denver into a United Nations community.” Alex Jones constantly hawks the conspiracy [Here’s one example from Jones’ website Infowars]. Glenn Beck warned it would lead to “centralized control over all of human life on planet Earth.” And in September, Newt Gingrich, hoping to burnish his wingnutty creds, told a group of Orlando Tea Partiers that, if elected, his first order of business would be “to cease all federal funding of any kind of activity that relates to United Nations Agenda 21.” (Currently, no federal funding of any kind is used for implementing Agenda 21.)

But Holland argues that, although conspiracy theories like this may seem weird and silly to us, the people pushing them are succeeding in harassing and intimidating politicians and public officials; and thus these conspiratorial beliefs may make it impossible for us as a society to deal with environmental issues like global climate change.

Holland links to a June 2011 article in the Washington Post by Darryl Fears, a science correspondent, about efforts to deal with rising sea levels which uniquely threaten the Virginia Beach area. Then on December 17, Fears reported that local residents are fighting these efforts to deal with future flooding of the area.

The sea level is rising in Virginia Beach and the entire area known as Hampton Roads because of the warming climate, and the area also happens to be sinking for other geological reasons.

Within 50 years, a big part of Virginia Beach’s identity — its beach — could be lost if nothing is done, said [Clay] Bernick, the city’s environment and sustainability administrator. Large pieces of land could also be lost to the ocean in Norfolk within a few generations.

In fact, the National Oceanic and Atmospheric Administration warns that, outside of greater New Orleans, Hampton Roads is at the greatest risk from sea-level rise for any area its size.

“It’s a significant threat,” Bernick said. “At this point, I wouldn’t put it in the category of fear, because it’s a long way off.” But he added: “You’ve got multiple factors with flashing lights saying, ‘Okay, guys, what are you going to do?’ ”

The residents’ opposition has focused on a central point: They don’t think climate change is accelerated by human activity, as most climate scientists conclude. When planners proposed to rezone land for use as a dike against rising water, these residents, or “new activists,” as [public planner Lewis L.] Lawrence calls them, saw a trick to take their property.

Here’s what some of the “activists” had to say:

“Environmentalists have always had an agenda to put nature above man,” said Donna Holt, leader of the Virginia Campaign for Liberty, a tea party affiliate with 7,000 members. “If they can find an end to their means, they don’t care how it happens. If they can do it under the guise of global warming and climate change, they will do it.” ….

When planners redesignated property as a future flood zone, activists said officials were acting on a hoax. They argued in meetings and on Web sites that local planners are unwitting agents of Agenda 21, a United Nations environmental action plan adopted in 1992 that the activists see as a shadowy global conspiracy to grab land and redistribute wealth in the United States.

“My professional credentials have been challenged,” said Lawrence, who holds degrees in municipal planning and provides professional and technical planning advice to municipalities throughout the peninsula. He said he has heard whispers behind his back after meetings: “I’ve been brainwashed. I’ve been called a dupe for the U.N.”

These kinds of irrational public protests are happening in other places too. Here’s an article posted at Alex Jones website Prison Planet.

MISSOULA, MT – In a move that would have made Joseph Stalin jealous, the City Council of Missoula, Montana on Monday approved the use of local tax dollars to an organization out of state known as ICLEI (International Council on Local Environmental Initiatives).

The ICLEI board can be found directly under the treasonous United Nations Agenda 21. The council room was almost in uproar as over 50 voices that opposed the funding of dues to the UnConstitutional initiative fell on deaf progressive “public servants’” ears.

“I am concerned that (the) Missoula City Council may be moving in a direction that could ultimately affect my property rights, which are guaranteed to me by both the Montana Constitution and the Constitution of the United States,” Trish Auras said during the council’s Monday night meeting. “Before you agree to paying dues to ICLEI, I would like somebody on the council to assure me that my property rights will not be affected in any way. Can you do that? Anybody?”

Read it and weep. Our future is being determined by ignorant people who take the bible literally and disdain science. They are leading us back into a new dark age. All you have to do is listen to the Republican presidential candidates to realize this is no exaggeration.

There’s another aspect to this conspiracy theory that Joshua Holland doesn’t mention. If you’ve read much of Alex Jones’ propaganda or listened to Glenn Beck, you know that another right win obsession is population control. Jones claims that once the “New World Order,” or global government is established, the elites will kill off 90% of the world population in order to make the planet sustainable for the rich and powerful who will remain. This also ties in with the mysterious Georgia Guidestones, pictured at the beginning of this post. Here’s an excerpt from an article (also linked above) from Jones’ website Infowars: “Al Gore, Agenda 21 And Population Control.”

When you start doing deep research into Agenda 21, you will find that describing it as a “comprehensive plan” is an understatement. Virtually all forms of human activity impact the environment. The rabid “environmentalists” behind the green agenda intend to take all human activity and put it into a box called “sustainable development”.

One of the key elements of “sustainable development” is population control. The United Nations (along with radical “environmental” leaders such as Al Gore) actually believes that there are far too many people on earth….Al Gore made the following statement regarding population control….

“One of the things we could do about it is to change the technologies, to put out less of this pollution, to stabilize the population, and one of the principle ways of doing that is to empower and educate girls and women. You have to have ubiquitous availability of fertility management so women can choose how many children have, the spacing of the children.

You have to lift child survival rates so that parents feel comfortable having small families and most important — you have to educate girls and empower women. And that’s the most powerful leveraging factor, and when that happens, then the population begins to stabilize and societies begin to make better choices and more balanced choices.”

Do you notice how whenever global leaders talk about “empowering” women these days it always ends up with them having less children?

The article concludes with a reference to the Georgia Guidestones, pictured at the top of this post, and at left.

Most Americans don’t grasp it yet, but the truth is that the global elite are absolutely obsessed with population control. In fact, there is a growing consensus among the global elite that they need to get rid of 80 to 90 percent of us.

The number one commandment of the infamous Georgia Guidestones is this: “Maintain humanity under 500,000,000 in perpetual balance with nature.”

One of the biggest issues for the right is the dis-empowerment of women. They want to make sure that women cannot choose whether or not to have a child or how many children to have. They’d probably like to force women out of the workplace and back into the home. That also ties in with the obsession with fighting population control. Why is it that this anti-woman agenda is so often ignored by the media–even by alternative media writers like Joshua Holland?

This post is getting way too long, and it probably makes no sense. But that’s my offering for today–a sample of what right wing conspiratorial madness and fear of science is doing to us. Holland is right. It has the potential to wreck wreck what’s left of our country.


Forget Texas, check out North Dakota

The problem with a market-based system is the variety of ‘frictions’ that exist when a specific good or service doesn’t line up with the conditions that need to exist in a perfect market.  The assumptions for perfect market capitalism are rather daunting. They are nearly as daunting as the conditions for a centrally planned government like that tried by the Soviets.  There have to be thousands–if not millions–of buyers and sellers who have no control over the market’s price or quantity produced.  This pretty much rules out all our nation’s markets with the exception of a few commodities.  These buyers and sellers produce and sell products and services that are all the same so no one cares who they buy from or sell to because it’s all the same.  This means no product or service differentiation.  Advertising does no good because there’s nothing that separates one good or service from any other.  Labels don’t matter.  Sizes, shapes, and colors are all uniform.  There is no difference between the information available to buyers and sellers.  That means there’s no insider information on any one’s part.  There is also no way to cheat or beat a market.  The only thing you can compete on if you’re a business is productivity and cost curves.  That’s the kind of markets that may have existed some 200 years ago when commodities ruled the planet but it in no way reflects any market today.

Because frictions exist, a role for government in markets exists.  It can be one of regulator or one of service/good provider.  There is a branch of economics that specifically studies which kinds of goods and services must be provided by government because otherwise they would be provided to only the very rich–like education or health services–or they wouldn’t be provided at all because there is no profit in providing the good.  There are also goods that once they are provided for one person are used by many others.  This is the so-called free rider problem and the provision of military defense is usually the prime example of this type of government good.  Another problem deals with the idea of “the commons” which basically led to an old problem in North Dakota like over hunting and near extinction of the American Bison.

The provision of a public payment system–much like a mail system–is one such good that many economists feel has a public good component.  This is why many countries supplement private banking systems with government banks.  Blended banking systems are pretty common in the Asian countries.  Interestingly enough, there is one state with a state bank.  It’s the one state in the union that made it through the global recession relatively unscathed.  That would be North Dakota.

North Dakota has been called an economic miracle. It has outpaced every other state during the worst of the recession. North Dakotaas the lowest unemployment rate and the fastest job growth rate in the country. This data is provided in a NYT article by Catherine Rampell.

According to new data released by the Bureau of Labor Statistics today, North Dakota had an unemployment rate of just 3.3 percent in July — that’s just over a third of the national rate (9.1 percent), and about a quarter of the rate of the state with the highest joblessness (Nevada, at 12.9 percent).

North Dakota has had the lowest unemployment in the country (or was tied for the lowest unemployment rate in the country) every single month since July 2008.

Its healthy job market is also reflected in its payroll growth numbers. North Dakota had 19,700 more jobs in July than it did during the same month last year.

That probably sounds like small potatoes when you look at Texas, which had 269,500 more jobs last month than it did a year earlier. But Texas is a much bigger, more populous state, and had many more jobs to begin with. In terms of percentage growth, North Dakota has a better record: year over year, its payrolls grew by 5.2 percent. Texas came in second, with an increase of 2.6 percent.

There are some more interesting facts here.  Yes, there is oil in North Dakota but that’s not the only thing driving its economy.

Alaska has roughly the same population as North Dakota and produces nearly twice as much oil, yet unemployment in Alaska is running at 7.7 percent. Montana, South Dakota, and Wyoming have all benefited from a boom in energy prices, with Montana and Wyoming extracting much more gas than North Dakota has. The Bakken oil field stretches across Montana as well as North Dakota, with the greatest Bakken oil productioncoming from Elm Coulee Oil Field in Montana. Yet Montana’s unemployment rate, like Alaska’s, is 7.7 percent.

A number of other mineral-rich states were initially not affected by the economic downturn, but they lost revenues with the later decline in oil prices. North Dakota is the only state to be in continuous budget surplus since the banking crisis of 2008. Its balance sheet is so strong that it recently reduced individual income taxes and property taxes by a combined $400 million, and is debating further cuts. It also has the lowest foreclosure rate and lowest credit card default rate in the country, and it has had NO bank failures in at least the last decade.

If its secret isn’t oil, what is so unique about the state? North Dakota has one thing that no other state has: its own state-owned bank.

Access to credit is the enabling factor that has fostered both a boom in oil and record profits from agriculture in North Dakota. The Bank of North Dakota (BND) does not compete with local banks but partners with them, helping with capital and liquidity requirements. It participates in loans, provides guarantees, and acts as a sort of mini-Fed for the state.

Yes, you read that right.  North Dakota is the only state in the union that has a mini-Fed.  It’s one of the reasons that the credit crunch didn’t impact the state the way it didn’t the rest of the country.  North Dakota’s Banker stepped in when other banks didn’t or couldn’t to help the state’s businesses.

Over the last two years officials and advocacy groups in more than 30 states have called the Bank of North Dakota, where he is chief executive officer, to ask: How does the country’s only state-owned bank work? “As the financial crisis deepened and there were liquidity issues around the country,” says Hardmeyer, “our model was looked at a little bit deeper than it ever had been before.”

The Bismarck-based bank was founded in 1919 to lend money to farmers, then the state’s biggest economic contributors, and retains its socially minded ethic by subsidizing loans for those it believes will stimulate growth: startup businesses and beginning farmers and ranchers. The borrowers apply for the loans through one of the state’s 100-plus local banks and credit unions. If they qualify, the community lender issues the loans at the market rate; the borrowers pay a fraction of the interest, with the Bank of North Dakota covering most of the difference. How can the state bank afford the subsidies? Profit isn’t its first priority. “We have a specific mission that we’re trying to achieve,” says Hardmeyer, “that’s not necessarily bottom-line driven.”

Which is not to say the bank, which has assets of $5 billion, isn’t a moneymaker. Much of its income comes from helping local banks extend credit to borrowers. If a bank wants to share the risk of a loan, the Bank of North Dakota will cover part of it. The state bank then collects interest from the commercial bank at the going rate. In 2010 its profit hit $61.85 million, up 44.3 percent from 2006.

That’s nice, but here’s the real reason politicians across the country are contacting Hardmeyer: North Dakota’s legislature has the authority to tap the bank’s profits to fund government programs during tough times. Since 1945 the state has collected $555 million from the bank.

Of course, the bank has many Republicans crying “Socialism” and the usual hubris you get from bank that really don’t like competition and prefer bonuses and bail outs.  The problem is that it’s difficult to argue with results.  That is why 13 states–including California–are seriously studying setting up their own state banks.  What many critics refuse to discuss is that this institution is not meant to supplant the private banking system.  Modified market systems work well with varying degrees of government participation.  Some markets function extremely well with a limited government role.  The financial system is unique.  The finance literature argues that if markets were perfect, banks wouldn’t actually exist.  There would be no reason for them.  Most of the research tries to actually find meaning in the existence of banks because they are essentially a parasite that attaches to a dysfunctional market that’s riddled with poor information and risk.  They can improve both situations or they can exacerbate them.  That is why there is some government role and arguably, some government functions within financial markets.  The challenge is to find which things the market can do well and the circumstances where the markets function and keep the government role active where failures and frictions create the need for a government role.

It’s possible that North Dakota has found the golden mean.

 


Monday Reads

Good Morning!

That’s Jujabee over there on the left.  He’s my daughter’s Mississippi Truck stop rescue kitty all decked out because even college girlz still can’t resist the temptation to dress up their kitties.  Don’t worry!  He’s safe in my care at the moment since she took off for Nebraska and a boyfriend this year!  He’s snuggled up with Miles Davis Jazzcat and Karma the Bywater bad dog.  It’s a long story, but my bestie Michelle’s dog died last night. Samara and Sasha and Honey and Karma were the Bywater Bad Dogs when I first bought my house and my friend Michelle and her daughter came to live with me because they needed a home.  Karma is the only one left now.  RIP Samara!  I remember when Michie put the lot of them up for sale on Ebay as the Bywater Bad Dogs after a particular messy dog situation.  That’s when Ebay decided that selling live things was unkewl, but it was certainly a funny joke and I wish I had the screen shot now.  Sheesh, where do the years go?  Yup.  She put all four of them up for sale as the Bywater Bad Dogs.  We actually had two friends bid for them but Ebay didn’t get the twisted humor so off the site they went.

So, I can’t resist the temptation to start out with an economics post.  Also, one that talks about how crass consumerism is going to do in humanity on the day when every one rids themselves of unwanted gifts.  It’s from Truth Dig and it’s called ” Goodbye “Shop Til You Drop” Mentality: Renegade Band of Economists Call for “Degrowth” Economy”.  All I want for the New Year is a garden full of food and a solar- powered house!

But what if all roads to prosperity don’t lead to the shopping mall, as most economists would have us believe? What if, in fact, all that shopping — and the imperative to grow corporate profits quarter after quarter and continuously expand the economy — was actually the root of many of the problems we face today?

That’s the view of a renegade but increasingly influential band of economists, who say the myth of perpetual economic growth and “the iron cage of consumerism” are the chief causes of world economic dysfunction and environmental crisis — and the biggest obstacle to our very happiness.

“Overwhelmingly, growth is seen as the solution to all problems, but growth is failing,” says Herman Daly, a former World Bank economist who is also known as the father of “ecological economics,” an offshoot of the same field that spawned Adam Smith three centuries ago but challenges many of the assumptions that classical economists hold dear.

While the term may seem like an oxymoron to some, ecological economics places the economy inside the larger “ecosphere” that supports all life on Earth, rather than seeing the economy and job creation in direct opposition to environmental protection. That’s an idea that has gained ground in recent years as businesses have become increasingly compromised by water and raw material scarcity, extreme weather, crop failures and other problems linked to global warming and environmental degradation.

The problem, says Daly, is that the economy, once an inconsequentially small part of the natural world, has become so supersized that — sort of like an ingrown toenail or an evasive Japanese knotweed bush — it’s now growing into the remaining ecosphere and jeopardizing our ecological life supports: things like drinkable water, fresh air and a stable climate.

Those ideas can be found influencing, among other things, the slow money movement, D.I.Y. culture, modern barter systems, car sharing, and corporate sustainability rhetoric. They are also reflected in the views of ecologists such as Lester Brown and Jeremy Rifkin, the author, pundit and adviser to the European Union, as well as entrepreneurs such as Yvon Chouinard, founder of Patagonia, which ran an advertisement this holiday season urging consumers not to buy the pictured jacket and to think twice about making any purchases they don’t really need.

My lifestyle mantra is simplify and downsize!  I have a house that’s been recycled many times having been built just after the civil war.  It’s very small and full of stuff from both of my grandparents’ house.  I also wear a lot of hand me overs sent to me by my sister.  Stuff is not the meaning of life.  I have to explain that I learned that lesson after I had nothing when I left New Orleans because of Katrina but my car, my computer, my pets and an overnight bag. I was grateful for contributions of clothes and warm things when I hit my friend’s house in Omaha.  Turning my back on everything I have and heading for the people I love for refuge taught me a life time of lessons.

So, you know how wonky I am about graphs, models, and data.  This is a completely wonderful post about physics and the existence of Santa Claus by The Atlantic. Yes, Einstein, Santa COULD exist.  So, in Buddhist lore there is a Happy Monk (Hotei) with a wish fulfilling bag.  He’s the fat dude that frequently gets mistaken by westerners for Buddha.  So, he doesn’t need elves because his bag will produce whatever is needed.  For those of you with the Nordic version that needs elves and reindeer, here’s a physicist’s estimate on Santa Clause and his trek around the world.  Here’s the proof!

It is stipulated that Santa Claus exists.

Further, that he spends the night of December 24th circling the globe in a sleigh pulled by flying reindeer. That he gains access to the homes of children that celebrate Christmas children, and that he gives them presents. And that he does this in the dark, unseen.

Granted, it seems… impractical. Over the course of one night, St. Nick has to stop by the home of every Christian child in the world. Of which there are a lot – an indeterminately large number of kids waiting for their gifts.

I decided to figure out how many, how big a task Mr. Claus faces as he races west across the face of the globe, staying ahead of the sun. And I did. Or, anyway, I came up with a pretty solid estimate.

The Methodology

What I wanted to figure out is this: how many Christian children live in each general area of the world. The region is important: where the kids live impacts the feasibility of the thing. If kids are distributed evenly, Santa has all night to reach everyone; if they live in the same place, he has about half as long.

It’s impossible to find this information without considering countries; no one tracks demographics based on longitude. So, for every country in the world – of which there are a lot – I really needed to figure out the population broken down by age, religion and time zone.

Well, the assumption is that he only delivers to “christian” children.  I stipulate that Hotei takes care of every one else!  So there!  I always get a good laugh when people mistake the far eastern Santa Claus for the historical Buddha.  I suppose it’s a typical mistake for people that don’t study comparative religions.

So, if you’re a wonky statistics nut like me you’ll just love the “9 numbers Obama will watch in 2012” from Politico.  The obvious number is the unemployment rate.  But, what are the others?

Italian bond yields. The European debt crisis, a slow-motion catastrophe with no predictable or palatable outcome, has the potential to sideswipe the U.S. economy in 2012, hijack the anemic recovery and sink Obama’s reelection chances.

Obama clearly recognizes this, and privately concedes the Eurozone is the biggest wildcard for him in 2012, even if he can’t do much about it. It must be an agonizing realization: After three years of fighting waves of recession — and the GOP — the administration must now cope with events they can’t really master and players they can’t control in Greece, Spain, France, Germany and Italy — the teetering economy with the biggest “boom” potential.

I’m always interested in housing starts and sales, but the article points to some interesting political numbers like Time Kaine’s polling numbers in Virginia, the number of $1 million plus donors to superpacs, and the trends in hispanic voters in Colorado.

Latino voters still make up a relatively small slice of the electorate, but they play an outsized role, thanks to their numbers in a handful of key Western states — Nevada, Arizona, New Mexico and Colorado.

Most Democrats think Arizona will stay red next year, while New Mexico and Nevada lean blue. But Colorado, which Obama won by a narrow margin in 2008 is a real toss-up — with Obama leading Romney by a statistically insignificant two points in the most recent survey by Democratic pollster PPP. That means the state’s Hispanic vote, 13 percent of all ballots cast in 2008, could be the difference between victory and defeat.

So, ¡Feliz Año Nuevo!  It seems we have an interesting 2012 ahead of us!  I’ll be posting my annual poll of projections, forecasts, and ruminations this week so stay tuned!  What’s on your reading and blogging list as we count down to 2012?


Sappy or Cynical? What’s Your Preference in Christmas Movies?

Even though I’ve never been a huge fan of Christmas, I used to love to break out the hankerchiefs and watch “It’s a Wonderful Life” every year on New Year’s Eve.

And I admit to sobbing while watching “Scrooge,” starring Alister Sim–the absolute best version of Dickens’ “A Christmas Carol”–back in the day. This version is great because it shows how Scrooge got to be so messed up. He was abandoned by his parents, left to spend Christmas alone at his boarding school.

I even liked the remake with George C. Scott as Scrooge. These movies would only be shown on TV once during the Christmas/New Year’s season, and I kind of looked forward to seeing them again each Christmas season.

Then at some point, maybe during the 1980s, the copyrights ran out on some of those great old holiday movies, and the TV stations started showing them about 25 times a week beginning around Thanksgiving. Now I simply can’t get through “It’s A Wonderful Life” anymore. It’s been totally ruined for me. I even got a bit sick of “Scrooge,” when I couldn’t turn on the TV without seeing it.

My taste now runs more toward black comedies like Bad Santa, which IMHO has to be the best Christmas movie ever. There are also some Christmas-themed horror movies–those can be fun if you’re in the right mood.

For anyone who happens to stop by tonight, would you please tell us what your favorite sappy or cynical Christmas movies is? I promise I won’t laugh at you if you like the sentimental ones. I totally understand. I can still be sucked in. Here are a few clips just to get you started. First the Sappy: a clip from Scrooge with Alistair Sim,

and one from We’re No Angels with Humphrey Bogart and pals as escaped convicts.

And now some cynical ones: Billy Bob Thornton in Bad Santa,

and Dennis Leary as a burglar who ends up having to play marriage counselor for a squabbling couple at Christmas time.

And here’s a bonus Christmas horror movie–just a mild one.

Now, what are your favorites?