Friday Reads
Posted: June 22, 2012 Filed under: Economy, morning reads | Tags: Aung San Suu Kyi, Dalai Lama, FCC, Operation Twist, SCOTUS, swearing on TV 32 Comments
Good Morning!
We made it through the Solstice on Wednesday so summer is officially here! The days get shorter and the nights get longer from here on out! What’s on your summer reading list?
My first read of the summer is going to be Kafka on the Shore by Haruki Murakami. I’m also planning on avoiding the heat by watching the entire first season of Treme.
More evidence shows that the economy is not improving because of the negative impacts of state and local spending. Layoffs of Public Workers are harming the recovery.
Government payrolls grew in the early part of the recovery, largely because of federal stimulus measures. But since its postrecession peak in April 2009 (not counting temporary Census hiring), the public sector has shrunk by 706,000 jobs. The losses appeared to be tapering off earlier this year, but have accelerated for the last three months, creating the single biggest drag on the recovery in many areas.
With the economy expanding, albeit slowly, state tax revenues have started to recover and are estimated to exceed prerecession levels next year. Yet governors and legislatures are keeping a tight rein on spending, whether to refill depleted rainy-day funds or because of political inclination.
At the same time, costs for health care, social services, pensions and education are still rising. Fourteen states plan to resolve their budget gaps by reducing aid to local governments, according to a report by the National Governors Association and the National Association of State Budget Officers.
So while the federal government has grown a little since the recession, and many states have recently begun to add a few jobs, local governments are making new cuts that outweigh those gains. More than a quarter of municipal governments are planning layoffs this year, according to a survey by the Center for State and Local Government Excellence. They are being squeezed not only by declining federal and state support, but by their devastated property tax base.
“The unfortunate reality is our revenue streams have not rebounded,” said Timothy R. Hacker, the city manager of North Las Vegas, which has cut its work force to 1,300 from 2,300 and is about to lay off 130 more. “Shaking this recession is becoming increasingly difficult.”
Some folks have been suggesting that the Fed should do something “out of the box” since it is politically impossible to stimulate the economy through good fiscal policy right now. Should the Fed start buying SLGS and monetize state debt?
The Fed can legally buy as many municipal bonds as it wants without congressional approval. Talk about burying a lead. This is a big story. Blanchflower is essentially saying that the U.S. government can bail out both the housing market via Fannie and Freddie paper purchases and the state governments via Muni purchases. And, of course, the banks get to dump these assets onto the Fed who will hold them to maturity. I guarantee you this will have a very nice kick since it is the state’s where the biggest employment cuts are. This is the Fed doing fiscal, friends
This is an interesting idea and one worth exploring.
The economic models are telling us that we need more stimulus. Lowering interest rates and more fiscal stimulus are out of the question. Quantitative easing remains the only economic show in town given that Congress and President Barack Obama have been cowed into inaction.
The major questions about quantitative easing aren’t so much if, but how much will the Fed buy and of what type? There is little point in moving slowly. So $100 billion a month for six months seems a reasonable amount.
What will they buy? They are limited to only federally insured paper, which includes Treasuries and mortgage-backed securities insured by Fannie Mae and Freddie Mac. But they are also allowed to buy short-term municipal bonds, and given the difficulties faced by state and local governments, this may well be the route they choose, at least for some of the quantitative easing. Even if the Fed wanted to, it couldn’t buy other securities, such as corporate bonds, as it would require Congress’s approval, which won’t happen anytime soon.
Republicans have been trying to change our lexicon for years now. George Lakoff and Elizabeth Wehling write on “Why Conservatives Sell their Wildly Destructive Ideology Better Than Democrats”.
Perhaps the most important omission from the Obama speech was any overt mention of The Public — everything that our citizenry as a whole provides to all, e.g., roads, bridges, infrastructure, education, protection, a health system, and systems for communication, energy development and supply, and so on. The Private — private life and private enterprise — depends on The Public. There is no economic freedom without all of this. So-called “free enterprise” is not free. A free market economy depends on a strong Public. This is a deep truth, easy to recognize. It undercuts Romney’s central pitch, that is it private enterprise alone that has made our country great, and that as much as possible of The Public should be eliminated.
Romney calls free enterprise “one of the greatest forces of good this world has ever known.” In reality, America free enterprise has always required The Public.
Romney attacks The Public, speaking of “the heavy hand of government” and “the invisible boot of government.” The contrast is with the putative “invisible hand” of the market — which leads to the good of all if everyone follows their self-interest and the market’s natural force is not interfered with. Romney’s “invisible boot” evokes the image of a storm trooper’s boot on your neck. The government is the storm trooper, your enemy. You are weak and in an impossible position. You can’t move — a metaphor for being held back and not being able to freely engage in the economy. Romney uses the frame consistently: “The federal establishment,” he says,” has never seemed so hostile.” The Public is an “establishment” — an undemocratic institution — which is the enemy of the people. It is implicit in this frame that the government is not the people.
The Supremes overruled the FCC’s swearing ban in a decision this week.
According to MSNBC, a ruling by the Supreme Court Thursday waived fines and sanctions against ABC and Fox, saying the Federal Communications Commission did not give them fair notice before punishing them over brief instances of curse words and nudity.
The ruling (PDF), which does not affect the FCC’s overall policy toward profanity, centered on outbursts by Cher and Nicole Richie on live awards shows on FOX and a brief instance of partial nudity shown on ABC’s NYPD Blue.
“Because the Commission failed to give Fox or ABC fair notice prior to the broadcasts in question that fleeting expletives and momentary nudity could be found actionably indecent, the Commission’s standards as applied to these broadcasts were vague,” Justice Anthony Kennedy wrote in the unanimous decision, adding that the FCC was free to revise its current policy “in light of its determination of the public interest and applicable legal requirements.”
Aung San Suu Kyi and His Holiness the Dalai Lama had a chance to meet in the UK.
THIS week two Nobel-peace-prize laureates, both international figures of inspiration, find themselves visiting Britain: the leader of Myanmar’s (ie Burma’s) opposition, Aung San Suu Kyi; and also the Tibetans’ exiled spiritual leader, the Dalai Lama. On June 19th, in London, the two met.
The rendezvous, not publicised on either of their official schedules, was disclosed by the Dalai Lama’s office on Twitter only the next day, where it was described simply as “a private meeting”. The Dalai Lama, who had previously called for Miss Suu Kyi’s release from house arrest, is reported to have told her “I have real admiration for your courage.” He also gave her his blessing, as one Buddhist to another. The obvious backdrop to any such blessing would be the separate political struggles of Myanmar and Tibet. The two places have a certain neighbour in common.
China’s leaders will not be happy to learn of the meeting. The Dalai Lama’s ten-day visit to Britain has given fresh occasion for China to denounce him. In a further measure, the Chinese Olympic committee threatened to withdraw some of its athletes from training in England. The Dalai Lama shrugged off all this as “routine”. He is as accustomed to acting as a hate figure for the Chinese government as he is to being a symbol of hope to many people elsewhere.
So, that’s a little this and that to get us started this morning. What’s on your reading and blogging list today?
peej
Carissa
bostonboomer
ecocatwoman
mablue2
Mama Lopez
peggysue22
quixote
skydancingguestblogger
Mona (aka Wonk the Vote)
Sky Dancing 
To escape the insanity that is American politics, I have been doing a lot of reading over the past few months.
Having discovered Peter Robinson, a “new” mystery writer for me, I am working my way through his 14 books on my Kindle. Am also rereading Alice Munro and a lot of Ruth Rendell books as well.
I would rather read “fiction” than to listen to the bullsh*t coming out of DC.
Peter Robinson is an excellent mystery writer. My favorite Robinson book is “In a Dry Season”.
Pat, if you enjoy Ruth Rendell, try her books written under the pseudonym “Barbara Vine” as well. Very good.
I am attempting to read P.D. James’ “Death Comes to Pemberley”. Since I am a huge fan of both Jane Austen and P.D. James, I should love this book. But I don’t. 🙂
I love Ruth Rendell, and I agree about the Barbara Vine books. It’s been a long time since I’ve read anything by her. I know she is still publishing. It’s amazing.
I only “discovered” him about two months ago and I am hooked on his series. I’ve probably read most of Barbara Vine/Ruth Rendell books but I also like MIchael Connelly’ s “Harry Bosch” series as well.
I fluctuate between fiction and non fiction but I right now I just want to be immerse myself for awhile in escapism v reality.
Chris Hayes has a new book out that I am toying with but just finished the Thomas Mann book recommended by bb and I need a breather from the toxicity.
Good fiction can often serve as a much needed “cure all”.
I heard that book isn’t one of PD James’ best.
I will definitely try some Peter Robinson on your recommendation, Pat J. If his books are as good as your other recommendation, In The Garden Of Beasts by Erik Larson, I’m know I’m going to love them. Thank you for your recommendation of the Larson book. It really helped answer one of the nagging questions of my lifetime– how could it all have happened? I have recommended the book to several other people.
SCOTUS may be aiming to outlaw public employee unions.
The Court’s Scott Walker Moment
This is not good. As a 40 year manager, I admit that unions could be a pain in the neck, however they were and are necessary to protect the rights of workers. Because of unions, the wage structure, child labour, vacations, working week hours, on job safety rules etc were legislated. Union workers built our nations. My Dad was a higher up guy in the railway/telecommunications industry and had to deal with unions constantly, yet he drilled into all of his kids and anyone that would listen that Unions were necessary.
If Scotus goes there, then where will they stop? Deny the rights of workers to organize – that’s one heckuva slippery slope. Also make the Supreme Court look like partisan puppets – how can anyone respect that?
There is now a suit asking the Court to find Dodd-Frank unconstitutional. Where it seems to be going is a corporatocrisy. It’s mostly already happened, but the conservatives on the Court seem to be determined to hurry it up. It sure looks like they’re going to overturn the health care law. Next it will be Roe v. Wade, I guess.
The SCOTUS decision to allow profanity on TV also made nudity OK. The FCC can no longer regulate either.
I’ve just started reading Kennett’s “Marching Through Georgia.” When my family made a reverse migration there from LA when I was a child, I thought the War Between the States, aka “The Recent Unpleasantness” was still going on. The culture was very strange to me but was a good early lesson, I feel I can travel most places and sort of blend in–at least not seem too fresh off the jumbo jet. Recently, I found out that I have Georgian roots from the 18th and 19th century on both sides of my mother’s family– great-great grandparents and earlier. The book is well written, instantly drawing me in. I grew up with the shadow of Kenneswa Mountain hovering around me and the Battle of Atlanta in the near distance. The South was in the throes of becoming “new.”
That sounds interesting. I love learning about where my family came from.
BB, have you ever read Booth Tarkington’s classic 1918 novel “The Magnificent Ambersons” ? It’s about Indianapolis, not Muncie, but it’s a wonderful view of Indiana during the early 20th century. Tarkington won two Pulitzer Prizes for fiction, yet he is largely forgotten now. A pity.
No, I haven’t read it. I’ll look for a copy when I go out there in the fall. My dad had a couple of other books by Tarkington.
So far this term, SCOTUS has decided in favor of the US Chamber of Commerce in every applicable decision.
http://www.theusconstitution.org/text-history/1484/developing-court-rules-chamber%E2%80%99s-favor-every-case-decided-so-far-term
I’m having a difficult time finding something really good to read this summer. As a librarian, this probably qualifies as a felony.
So help me out, Sky Dancers! Any book suggestions? I love English mysteries, but I’m open to reading other genres as well.
If you haven’t read Jonathon Kellerman, he’s good – not great but good. Same for Sandford and Balducci. Personally this summer I’m re-reading the classics – Chandler, Hammett, DuMaurier, Tey et al.
I just started “The Daughter of Time” by Josephine Tey. It’s about a modern-day detective attempting to find the truth behind Richard III. If you like English history mixed with English detective stories, it seems like a quick, refreshing read. I rarely read mysteries but it seemed like fun.
She is wonderful!! I read all her books.
Glad to hear it. I’m redoing all the Shakespeare histories alongside Asimov’s Shakespeare which is nothing but a pleasure. So I took a detour onto Josephine Tey. I should check some of her other stuff out.
I really like Nevada Barr. Have you tried her? She writes mysteries that take place in different national parks. She writes very well.
Yes she is good — you learn about different national parks — plus the mystery is always well thought out. PLUS it is nice to see a strong woman character.
James Lee Burke’s novels are always good. His daughter Alifair is following in his footsteps and is also a very good writer of mystery fiction.
Okay, I complied a list of your author suggestions and put them in alphabetical order. 😆 I hope I didn’t miss any.
Baldacci, David
Barr, Nevada
Burke, Alafair
Burke, James Lee
Connelly, Michael
Kellerman, Jonathan
Sandford, John
Tey, Josephine
Their books should keep me busy this summer. Thank you, Sky Dancers!
That should be “compiled”, not complied. Golly, geez, I really do know the difference.
We should do this more often!
Oh and the SCOTUS decisions that Dak and BB mentioned have me checking my passport. Get out while the going’s good. Because if they outlaw unions in the film industry, people will literally die. Until recently, before they mandated driving distance maximums and work hour limits, people were so tired they were crashing as they commuted to and from the set. All the reality shows have really made a loop hole to get around using union crew and it has dumped salaries for everyone across the board. It used to be an editor could make a very decent living and support a family, now the salary is basically for a 20 year-old straight out of college. The last hold out is really the actor’s union and they’ve already been infiltrated because most of their strong members are producers as well (Tom Hanks, cough). Yeah, the money guys will just regulate themselves.
It’s the public employee unions that are the target of all this. If they can be killed the Democrats will lose one of their most reliable sources of funding and grunt work. The unions that are supported by the wealthy, like those for journalists, broadcasters, entertainers, and athletes will probably carry on just fine for now.
Public unions are economically necessary. Many public jobs are unique, therefor, the governments have monopsonies. Unions are necessary to offset that kind of power. Have you notice they are more likely to go after the pink unions like the ones for clerks and teachers? They are less likely to go after police and fire fighter unions. I think they really hate unions that have large female membership.
Honestly I never thought about the “pink” scenario, but now you’ve mentioned it – well it’s obvious isn’t it. With the assault on women’s rights – read ladyparts- and the deferral of the bill enshrining equal pay it all makes sense. But why? Why do these men hate women?
On another point – Unions are necessary and all of those sheep bleating about getting rid of them are shooting themselves in their feet, legs and torso.
Matt Taibbi earned his keep at Rolling Stone for a long time with this story. It’s great and important to us all.
The Scam Wall Street Learned From the Mafia
I think Mitt missed the lessons of Monopoly. The result of free enterprise capitalism is the creation of a monopoly which is nothing like free market capitalism. The only “invisible hand” in the market place is the “banker”.