Saturday Reads: On the Bright Side of the Dark Side

Pakistanis watch the New Year fireworks in Karachi on January 1, 2011. (RIZWAN TABASSUM/AFP/Getty Images)

Good evening and a Happy 2011, Sky Dancers.

Here are my Saturday offerings for the New Year. There’s a lot of doom and gloom in the headlines, so I tried to mix in a few stories and thoughts of my own to put things into a more motivating and thoughtful perspective.

From McClatchy:2011 looks grim for progress on women’s rights in IraqBAGHDAD — When Iraqi Prime Minister Nouri al Maliki introduced what he called a national partnership government two weeks ago, he included allies and adversaries, Arabs and Kurds, Shiite Muslims and Sunnis. One group, however, was woefully underrepresented. Only one woman was named to Maliki’s 42-member cabinet, sparking an outcry in a country that once was a beacon for women’s rights in the Arab world and adding to an ongoing struggle over the identity of the new Iraq.

From further down in the article: “After Maliki announced his lineup, Alaa Talabani, a female lawmaker from the northern Kurdistan region, delivered a rousing condemnation of the selection process to a packed legislative chamber. ‘The Iraqi women feel today, more than any other day, that democracy in Iraq has been slaughtered by discrimination, just as it was slaughtered by sectarianism before,’ Talabani said, her voice quaking with emotion.”

“…slaughtered by discrimination, just as it was slaughtered by sectarianism.” That is a powerful statement.

It reminds me of this Hillary quote: “To expand freedom to more people, we cannot accept that freedom does not belong to all people. We cannot allow oppression defined and justified by religion or tribe to replace that of ideology.” –Secretary of State Hillary Clinton, in Berlin for the 20th anniversary of the wall’s collapse

The words of both Alaa Talabani and Hillary Clinton above make me think of dry drunks and switching addictions. It is as if there is a certain quotient of oppression junkies out there who just go from one form of subjugating others to the next.

Which brings me to my next link. From Chris Hedges’, a few days ago, at truth-out2011: A Brave New Dystopia… The two greatest visions of a future dystopia were George Orwell’s ‘1984’ and Aldous Huxley’s ‘Brave New World.’ The debate, between those who watched our descent towards corporate totalitarianism, was who was right. Would we be, as Orwell wrote, dominated by a repressive surveillance and security state that used crude and violent forms of control? Or would we be, as Huxley envisioned, entranced by entertainment and spectacle, captivated by technology and seduced by profligate consumption to embrace our own oppression? It turns out Orwell and Huxley were both right. Huxley saw the first stage of our enslavement. Orwell saw the second.”

My apologies if another frontpager or commenter has already spotlighted Hedges’ piece and I missed it, but I think this is important enough a read to merit a repeat linking.

Speaking of our impending total enslavement, Derek Kravitz at the Washington Post reports that As frustration grows, airports consider ditching TSASome of the nation’s biggest airports are responding to recent public outrage over security screening by weighing whether they should hire private firms such as Covenant to replace the Transportation Security Administration. Sixteen airports, including San Francisco and Kansas City International Airport, have made the switch since 2002. One Orlando airport has approved the change but needs to select a contractor, and several others are seriously considering it. The Metropolitan Washington Airports Authority, which governs Dulles International and Reagan National airports, is studying the option, spokeswoman Tara Hamilton said. For airports, the change isn’t about money. At issue, airport managers and security experts say, is the unwieldy size and bureaucracy of the federal aviation security system. Private firms may be able to do the job more efficiently and with a personal touch, they argue.

No Profit Left Behind strikes again.

Oh, and it strikes here too — from Alan Johnson at the Columbus-Dispatch Kasich emphasizes ‘business’: Governor-elect wants to ‘exploit’ resources, picks EPA, DNR chiefs Kasich, a former Republican congressman who will take office Jan. 10, emphasized that he doesn’t plan to empower business at ‘the cost of environmental degradation.’ But in the next breath, he said he wants to ‘exploit the wonders of our state.'”

Exploit? Way to thread the business vs. environment needle ever so delicately. Teddy R. has got to be rolling in his grave when he sees today’s Republican party.

Moving along and keeping with the theme from Chris Hedges’ piece, this headline from Raw Story: Judge warns of ‘Orwellian state’ in warrantless GPS tracking casePolice in Delaware may soon be unable to use global positioning systems (GPS) to keep tabs on a suspect unless they have a court-signed warrant, thanks to a recent ruling by a superior court judge who cited famed author George Orwell in her decision. In striking down evidence obtained through warrantless GPS tracking, Delaware Judge Jan R. Jurden wrote that ‘an Orwellian state is now technologically feasible,’ adding that ‘without adequate judicial preservation of privacy, there is nothing to protect our citizens from being tracked 24/7.’ The ruling goes against a federal appeals court’s decision last summer that allowed warrantless tracking by GPS.

Sounds like this judge in Delaware just may be looking out for us. So a little silver lining there.

In other uplifting reads… the Gray Lady has a very sentimental editorial today called A Year Anew.”

From the link:“By now, of course, 2010 feels like a completely familiar, totally used-up year. But why does 2011 still sound like an annum out of science fiction? It’s not as though 2011 is a remoter outpost in the hinterland of the future than, say, 1971 was. Yet here we are in the second decade of the 21st century, living in the very future we tried to imagine when we were young so many years ago. Surely we must have colonies throughout the solar system by now. Surely hunger is no more, and peace is planet-wide. The coming of the new year reminds us, again, that we live, as we always have, somewhere on a sliding scale between utopia and dystopia and that we continuously carry our burdens and opportunities with us. 2011 is merely a new entry in our ancient custom of chronological bookkeeping, an arbitrary starting point for our annual trip around the sun. But it is also so much more. Who can live without fresh intentions, new purposes? Who does not welcome a chance to start over, if only on a new page of the calendar? Life goes on, but it goes on so much better with hope and renewal and recommitment. Last night was a night for banishing regrets. Today is for wondering how to live without new ones, how to do right by ourselves and one another.”

It’s probably nothing more than a neat little moment of synchronicity, but while reading the above, I couldn’t help but picture someone on the NYT editorial board reading Hedges’ column, getting depressed and a little drunk, and then deciding to respond with this editorial.

Next up from today’s Gray Lady, Bob Herbert has an op-ed on the suspension of the Scott sisters’ prison terms For Two Sisters, the End of an OrdealWhat is likely to get lost in the story of the Scott sisters finally being freed is just how hideous and how outlandish their experience really was. How can it be possible for individuals with no prior criminal record to be sentenced to two consecutive life terms for a crime in which no one was hurt and $11 was taken? Who had it in for them, and why was that allowed to happen? The Scott sisters may go free, but they will never receive justice.

Those are good questions, but I doubt we will ever find any answers to them.

I saw a bunch of new year’s stories on Baby Boomers. I’m just going to link to a few of them without excerpting:

Boomers Hit New Self-Absorption Milestone: Age 65” (NYT)

Baby Boomers Expected to Drain Medicare” (ABC)

Baby Boomers helped democratize art” (USA Today)

With so many of the headlines being so hostile toward boomers, like the NYT and ABC ones, I was glad to see that last one from USA Today. I think all the demonization along generational lines is such a waste.

I have a couple more quick links before I wrap this up.

Over in Brazil, some exciting news. President Dilma Rousseff is sworn in! From Newsday: Brazil’s first female president vows to end poverty.”

Newsweek has an interesting piece — The Manchurian Candidate: When Barack Obama posted Jon Huntsman to Beijing, it looked like a crafty way to sideline a 2012 rival. Don’t bet on it.”

I hope commenter Pilgrim catches this one! I know she’s a Huntsman fan.

From Raw Story — “Kucinich: GOP’s anti-health reform push may fuel Medicare-for-all drive.”

Here’s hoping against Hope on that one.

And on that note, your historical trivia for January 1st. On this day in 1892… The Ellis Island Immigrant Station in New York opened.

I’d like to close with this verse from Tagore on this New Years…

MIND WITHOUT FEAR
(Gitanjali, Verse 35)

Where the mind is without fear and the head is held high;
Where knowledge is free;
Where the world has not been broken up
into fragments by narrow domestic walls;
Where words come out from the depth of truth;
Where tireless striving stretches its arms towards perfection;
Where the clear stream of reason has not lost its way
into the dreary desert sand of dead habit;
Where the mind is led forward by thee into ever-widening
thought and action-
Into that heaven of freedom, my Father, let my country awake

–Rabindranath Tagore

Hope you are having a peaceful entry into the new year. Drop a note and let us know what you’re reading and thinking about in the comments if you get a chance.


Consuming the News

I was one of those nerdy little kids in class that loved it when show and tell switched to bringing a current events article and presenting it to the class.  In my grade school, the big day was Wednesday.  I got my first subscription to The Paris Match in 7th grade and my Honors World History teacher turned me on to The Guardian in 11 th grade. My grandmother made sure we all had subscriptions to The Christian Science Monitor until the day she died. I think a lot of it had to do with being trapped in Omaha where nothing EVER happened.  I was fortunate that my family put a high priority on travel because the newspaper subscriptions were  a portion of what kept me away from becoming the archetypal Omahan.  Geographical and cultural isolation can lead to some strange people. (Cue The Deliverance banjos.)

I’ve been returning to the PEJ site now that I know it exists.  That’s where I’ve pulled this book review and an interesting set of suggestions on how to “interpret the news”.  I admit to having a preference for C-SPAN these days as I’m pretty tired of the idiots that filter and read the MSM items now.   I probably will order up the book ‘Blur, How to Know What’s True in the Age of Information Overload’ by Bill Kovach and Tom Rosenstiel. The review says its goal is to provide a “pragmatic, serious-minded guide to navigating the twenty-first century media terrain”.  That’s a serious agenda given the number of commercial news outlets we have these days.

Here’s another bit from that:

Blur provides a road map, or more specifically, reveals the craft that has been used in newsrooms by the very best journalists for getting at the truth. In an age when the line between citizen and journalist is becoming increasingly unclear, Blur is a crucial guide for those who want to know what’s true.

What I want to offer up is the list they provide.  It’s called “Ways of  Skeptical Knowing”.   My mother handed me her middle name–Jean–for my birth certificate.  She was always a true to form Show-Me-State skeptic.  That’s why I always consider “Skeptic” to be my authentic middle name.

Ways of Skeptical Knowing—Six Essential Tools for Interpreting the News

1. What kind of content am I encountering?

2. Is the information complete? If not, what’s missing?

3. Who or what are the sources and why should I believe them?

4. What evidence is presented and how was it tested or vetted?

5. What might be an alternative explanation or understanding?

6. Am I learning what I need?

So, armed with this, I got slightly curious about the guys that wrote the book and found an interview with Bill  Kovach at a site called Stinky Journalism.  I gave up writing for the school paper back in high school so I actually didn’t know he’d authored your basic Journalism 101 textbook, The Elements of Journalism. The site explains how Blur “focuses on the importance of verification, fact-checking and evidence in media — whether it be traditional newspaper media or an online blog”.   Evidence!!! Verification!!! Fact-Checking!!!  NOW, we’re talking stuff that sends tingles up and down my researcher leg!!

I found this quote to be very interesting.

“The separation between journalists and citizens is slowly disappearing.  I mean, anyone, anywhere can be a reporter of the next big news incident.  Anyone can be a reporter now, and in terms of the information citizens need because they have access to the online presentation of information from hundreds of sources, they are becoming their own editors.  So it’s imperative that we both help journalists understand this change…and citizens understand how they can determine what they can believe in.”

What drove my Grandmother to send me The Christian Science Monitor, my French teacher to share the Paris Match, and my history teacher to encourage me to read The U.K. Guardian is what drives me to alternative sources on the World Wide Web today. I  was fortunate enough to  develop a healthy skepticism about relying on any one source of information from these precious folks who cared about my development as a person.  I am thankful for my earliest experiences of looking out side of the Omaha World Herald for information.  I do have to say that I was fortunate to be educated in an excellent public  school system that was well known for its outstanding English programs and teachers.  This is the same high school and school system  that produced Kurt Andersen. (One of my friends had a wicked crush on him and used to use my access to get into the Journalism classroom/lab to get near him when we were sophomores.)

I guess I’m bringing this up for several reasons. First, I think part of being in a democracy means that you become an informed citizen.  That implies you need information and it should be factual information.  Second, I think that the powers that be have found so many profound means of disseminating propaganda through main stream sources–think WMDs and the Iraq War– that we have to actively search out alternatives to find out not just the information; but the truth.

Lastly, nothing is making this an imperative as the Wikileaks episode.  What first made some things clear to me in Junior High School was The Pentagon Papers.  For some childish reason, I thought my exceptionally wonderful and moral country would never lie to me or hide things from me other than battlefield plans.  I believe that my reaction to both was formed early by the intents of my grandmother and my teachers to get  me to look outside my narrow life to the world at large.   Our government, many people in our communities and plenty of those around us–including the press–are not always acting from truth or the best interest of all of us.  It’s important to discover intent, funding, and connections.  We must all become investigative journalists.  However, it heartens me to see that there are still journalists that remember they are an important element of democracy.  It saddens me when journalism turns into celebrity gossip rags and spin vehicles.

Thomas Paine and Benjamin Franklin were the bloggers of their day.  Samuel Adams made certain that the Massachusetts Circular Letter was seen by more than just the local politicians.  His ‘leaks’ outraged the British monarchy.  It also lead to our nascent democracy.  Much of what is going on right now is part of our heritage as Americans.  However, so many people have have access to platforms now that it’s important to do the basic research for ourselves.  We must be vigilant and tenacious truth seekers.


The Voodoo They All do so well

I’m not sure what exact delusional or fugue state describes Paul Ryan’s psyche. Dammit Jim, I’m an economist not a psychologist!   I do, however, recognize b$gf$ck crazy when I see and hear it.  It makes me want to avoid whatever part of Wisconsin that votes him into office because there must be something in their water or air.  It amazes me that one small section of  our country can wreck so much havoc on the rest of us by sending a loony tune to Washington, D.C.   I’m beginning to think that Miami University should ask him to turn his degree back in and issue him a refund.  I certainly would be ashamed if he were the product of any of my economics classes.

Paul Ryan is an outstanding example of everything that is wrong within that damnable beltway.  He’s Daddy knows best on Acid.  He wants to usher in the Republican Big Daddy state.  In January, his type of crazy will dominate the House Budget committee. As a mater of fact, it’s already starting and it’s alarming.

RYAN’S RADICAL RULE?…. House Republicans quietly advanced procedural budget rules last week, which would be funny if they weren’t so ridiculous. But there’s a second part of this that shouldn’t go overlooked.

We talked the other day about Republicans’ “Cutgo” rules. The policy allows the GOP to try to keep slashing taxes, without having to pay for them, while requiring spending cuts to pay for new or expanded programs.

As Paul Krugman explained this morning, “Spending increases will have to be offset, but revenue losses from tax cuts won’t. Oh, and revenue increases, even if they come from the elimination of tax loopholes, won’t count either: any spending increase must be offset by spending cuts elsewhere; it can’t be paid for with additional taxes.” The Nobel laureate labeled this “the new voodoo.”

And then there’s the other part of House Republicans’ new budget rules.

A little-noticed detail in the new rules proposed by House GOP leaders would greatly increase the power of Rep. Paul Ryan, R-Wis., the incoming chairman of the House Budget Committee. As National Journal’s Katy O’Donnell reports, the new rules say that, for fiscal 2011, the chairman will set spending limits without needing a vote.

If that sounds insane, that’s because it is. Under the proposed rules, Ryan would be empowered to single-handedly establish spending levels if the House and Senate struggle to agree on a budget resolution. Just as important, Ryan’s levels would be binding on the chamber, without even be subjected to a vote.

Fascism doesn’t creep with Ryan in charge of things.  It sprints.  It’s typical of the radical right/Bircher mentality to think that when one can’t get to where they want with reasoned thought and plurality, it’s okay to lie about it and sneak things in under the radar.  Thankfully, Paul Krugman has a bully pulpit at the NYT. Krugman’s description of the entire thing is right on.  There’s only one problem.  Krugman consistently ignores just how much Obama has been enabling the voodoo.  It is, afterall, the Obama-McConnell Tax Cuts for Billionaires (TM) law.  In fact, I’m willing to go out there on limb and say Obama believes the voodoo and that other Democrats perpetually cut-and-run rather than hold ground on it.  Krugman seems to set on pointing out  the sin on one side of the aisle and ignoring the same behavior on the other side.  Let’s ignore that for a moment and concentrate on the good stuff Krugman offers.

But the tone changed during the summer, as B-day — the day when the Bush tax breaks for the wealthy were scheduled to expire — began to approach. My nomination for headline of the year comes from the newspaper Roll Call, on July 18: “McConnell Blasts Deficit Spending, Urges Extension of Tax Cuts.”

How did Republican leaders reconcile their purported deep concern about budget deficits with their advocacy of large tax cuts? Was it that old voodoo economics — the belief, refuted by study after study, that tax cuts pay for themselves — making a comeback? No, it was something new and worse.

To be sure, there were renewed claims that tax cuts lead to higher revenue. But 2010 marked the emergence of a new, even more profound level of magical thinking: the belief that deficits created by tax cuts just don’t matter. For example, Senator Jon Kyl of Arizona — who had denounced President Obama for running deficits — declared that “you should never have to offset the cost of a deliberate decision to reduce tax rates on Americans.”

It’s an easy position to ridicule. After all, if you never have to offset the cost of tax cuts, why not just eliminate taxes altogether? But the joke’s on us because while this kind of magical thinking may not yet be the law of the land, it’s about to become part of the rules governing legislation in the House of Representatives.

It’s one thing to say “That’s just crazy talk” to Republicans but to turn around and excuse or ignore the enabling and facilitating role that the President and Democratic members play is to commit a big sin of omission.  That troubles me when you’re one of the few economists with a very public bully pulpit.

There’s obfuscation on all sides of this stupidity however.  BostonBoomer asked me about a response to Krugman’s criticism here that’s grounded in something  wonky at JustOneMinute. The writer of that post tries to call  out Krugman by screaming “deception and misdirection”, then referring to Ricardian economics.  You must use the Wayback Machine for this one.  The article is like reading a critique of modern democracy based on what they did in Athens around 500 BC.

Let me just refer to the Wikpedia on Ricardian Economics to tell you how far we have to go in the Wayback machine.

David Ricardo was born in 1772 and made a fortune as a stockbroker and loan broker.[1] At the age of 27, he read An Inquiry into the Nature and Causes of Wealth of Nations by Adam Smith and was energized by the theories of economics. His main economic ideas are contained in Principles of Political Economy and Taxation (1817). This set out a series of theories which would later become theoretical underpinnings of both Marx’s Das Kapital and Marshallian economics, including the theory of rent, the labour theory of value and above all the theory of comparative advantage.

Ricardo wrote his first economic article ten years after reading Adam Smith and ultimately, the “bullion controversy” gave him fame in the economic community for his theory on inflation in 19th century England. This theory became known as monetarism, the theory that excess currency leads to inflation.[2] He was also a factor in creating classical economics,[3] which meant he fought for Free trade[4] and free competition without government interference by enforcing laws or restrictions.[5]

Yes, that’s right.  Ricardo is an early 19th century economist philosopher writing during the time when the main sector of all economies was agriculture using technology like  horses and slaves under a system called Mercantilism. That’s the reason to criticize Krugman.  Yes, we academic economists teach Ricardian concepts, models, and principles still.  However, it’s just because it’s an easy entry for people that do not have good calculus skills and are unfamiliar with the most basic economic concepts. These simple models weird enough people out as it is. Also,  it’s the original, early attempt at theory that under pins classical economics.  Tons of empirical data and computer models plus advances in mathematics have pushed us beyond all that.  Most of the Ricardian stuff has been reformulated–as has a lot of the Keynesian stuff and that’s only from about 100 years ago–and tested empirically.  To put it in blunt terms, some of the impacts have the right sign and do exist, but they show up as so trivial that no one takes them seriously when you’re dealing with real world economic policy.   A really good example of this is the ‘crowding out effect’.  Another is what Tom Maguire points out at JustOneMinute.    Let me refer to a thing via new school on Barro who is one of the reformulaters.

Almost immediately, Barro turned on his Keynesian roots and joined the Rational Expectations revolution with two central pieces: his celebrated “Ricardian Equivalence Hypothesis” (1974) and his famous money neutrality paper (1976). Under a particular set of assumptions (e.g. intergenerational altruism or immortality, perfect capital markets, lump sum taxation, and the condition that debt not grow faster than the economy), Barro’s (1974) “Ricardian Equivalence Hypothesis” argues that every bond-financed deficit must be met by a future tax increase, that this tax increase would be forseen by living agents and that these agents would care enough about posterity to adjust their present consumption accordingly. In short, this implies that agents do not take a bond-financed fiscal expansion as a lucky windfall but rather will save the entire proceeds in anticipation of the future tax burden – and thus not raise their demand for goods and services. Thus income received by agents from government deficit-spending is all saved – and hence has no effect on consumption (thus no multiplier) – and that these savings go into the demand for the very same bonds that were supplied to finance that government spending (so bond demand rises exactly to meet higher bond supply, and money demand is unchanged) and thus there is no effect on interest rates either.

Barro’s “Ricardian Equivalence Hypothesis” has spawned a virtual research industry of its own as a whole generation of economists have climbed over each other tortuously examining, assailing, and verifying the validity and implications of Barro’s theorem (his 1974 paper is among the most-referenced papers in economics today). Barro’s 1976 paper on the neutrality of monetary policy (i.e. that changing money supply growth would not affect output or interest or any real variables) followed up on the work of Lucas and Sargent and although less unique, it was no less controversial.

This stuff is at the root of the conflict between the freshwater (Neoclassical) and the saltwater economists (NeoKeynsian) economists.   I highlighted the most germane thing in all of this above and that is the phrase “under a particular set of assumptions”.   It takes just as many unrealistic assumptions to make a free market economy work as it does to create a Marxist Utopia.  The most suspect assumption of all is that of perfect capital markets. 

Joseph Stiglitz earned his Nobel Prize for a career spent outlining all the ‘frictions’ in markets. That would be all the stuff in reality that make markets so damned imperfect.  Stiglitz’s big thing is asymmetries of information which is something I talk about a lot when it comes to financial markets.  The capital markets are loaded with them; especially now.  Then, there’s the little friction involved with basic market structures. Back in the Ricardian days it was possible to point to the market for wheat and label it a somewhat ‘perfect market’.  We’re way past that.  We’ve got so many monopolies and oligopolies and so much government regulation and rules, that what Ricardo and Smith describe is as arcane as Marxism.  Greg Mankiw is probably the closest ‘real economist’ source I can name that still ambles along those lines.  However, he does so with a huge amount of caution. No one serious denies the role of frictions in markets.

The most silly thing about the JustOneMinute commentary is it ignores the source of Krugman’s Nobel–international trade–which starts with the Ricardian ‘comparative advantage’ framework.  It also ignores Krugman’s writings outside of the NYT.  Here’s an example  from MIT that’s still standing called ‘Ricardo’s difficult idea’. Krugman writes this in the 1990s.  Now, why was that so difficult to Google?

And so one is prepared to be sympathetic after reading a passage like the following, on the first page of Sir James Goldsmith’s The Trap: “The principal theoretician of free trade was David Ricardo, a British economist of the early nineteenth century. He believed in two interrelated concepts: specialization and comparative advantage. According to Ricardo, each nation should specialize in those activities in which it excels, so that it can have the greatest advantage relative to other countries. Thus, a nation should narrow its focus of activity, abandoning certain industries and developing those in which it has the largest comparative advantage. As a result, international trade would grow as nations export their surpluses and import the products that they no longer manufacture, efficiency and productivity would increase in line with economies of scale and prosperity would be enhanced. But these ideas are not valid in today’s world.” (Goldsmith 1994:1). On close reading, the passage seems a bit garbled; but maybe he is just a careless writer (or the translation from the original French is imperfect). One expects him to follow with a discussion of some of the valid reasons why one might want to qualify Ricardo’s idea — for example, by referring to the importance of external economies in a high-technology world.

But this expectation is utterly disappointed. What is different, according to Goldsmith, is that there are all these countries out there that pay wages that are much lower than those in the West — and that, he claims, makes Ricardo’s idea invalid. That’s all there is to his argument; there is no hint of any more subtle content. In short, he offers us no more than the classic “pauper labor” fallacy, the fallacy that Ricardo dealt with when he first stated the idea, and which is a staple of even first-year courses in economics. In fact, one never teaches the Ricardian model without emphasizing precisely the way that model refutes the claim that competition from low-wage countries is necessarily a bad thing, that it shows how trade can be mutually beneficial regardless of differences in wage rates. The point is not that low-wage competition never poses a problem. Rather, what is significant is that despite ostentatiously citing Ricardo, Goldsmith completely misses one of the essential lessons of his argument.

It’s really obvious that Krugman–indeed, most of us–don’t see the Ricardian model as anything but an early attempt to take economics out of the realm of philosophy and apply the scientific method and models.  It’s like yelling at a learned Psychologist for not continually citing Freud as a modern authority or a learned Molecular Biologist for not continually citing Darwin as the be all and end all on evolutionary theory.  These guys started modernizing their fields, but a lot of new evidence, tools, and data have arisen since then.

So,  my bigger question is why do we have Republicans pushing a 19th century world view when it comes to economics?  I then would also like to know why  Democrats–especially a Democratic POTUS–enable them?    Well, according to The Hill, Democrats are ripping the proposed rule.  Democrats always seem really skilled at shaking their tiny fists before anything really happens.

Democrats argue the provision would give unilateral power to Ryan and flies in the face of GOP promises of transparency.

“Allowing incoming Chairman Ryan to have unilateral power to set spending limits — instead of subjecting those limits to a vote on the floor of the House — flies in the face of promises by House Republicans to have the most transparent and honest Congress in history,” said Doug Thornell, spokesman for incoming House Budget Committee ranking member Chris Van Hollen (D-Md.), in an e-mailed statement.

“Unfortunately, the House GOP is reverting back to the same arrogant governing style they implemented when they last held the majority and turned a surplus into a huge deficit,” he added.

Drew Hammill, spokesman for incoming Minority Leader Nancy Pelosi (D-Calif.), also criticized the rule change. He said the decision to cede power to Ryan “runs counter to the Republicans’ promises of transparency and accountability.”

The deal is will they actively FIGHT it and stop it?  Then the bigger question is will Krugman talk about the complicity of the Democratic congress critterz and the President in enabling their stupidity?

Forehead, meet palm.


New Year’s Eve Reads

Good morning!

Today we begin to say good bye to 2010 and the first decade of the millennium and century!    What a decade and what a year it has been!  I don’t know about you, but just the last five years alone have turned my life upside down. (Think Hurricane Katrina, BP Oil Tsunami, and the financial crisis that has empowered thugs like Governexorcist Jindal to enforce absolute budget austerity on Louisiana and higher education.)   Despite all that, we’re going to have an Airing of the Gratitude thread as part of the-Little-Blog-That-Could’s New Year’s Celebration.  I’ve bought my black eyed peas and cabbage.  Now, I’m making my list of things that I resolve to appreciate for the thread.  I’d like to invite you to think about yours too and join in.   A lot of my gratitude comes under the heading of my daughters, dad and sister, and my friends.  That includes you !  We’re a blogging community that was forged from some really tough political times.

Meanwhile, here are some headlines to gear you up for the coming year and decade.  May things improve for the better!!  May peace and sanity prevail!!  May every one’s health and circumstances improve tremendously!  Many, many  blessings to each and every one of you!

Are you pessimistic or optimistic about the coming year?  A CNN poll  shows a lot of people are optimistic about the the world outlook, but less so about their personal situation. Men are much more optimistic than women.  Where do you fit in?

The Senate appears to have reached its limit on perpetually trying to find 60 votes for cloture and taking every ‘threat’ of a filibuster seriously.  Brian Beutler at TPM is following the reform movement and the possible hurdles it faces.

The consensus package will aim to put an end to “secret holds” (anonymous filibuster threats) and disallow the minority from blocking debate on an issue altogether. Those two reforms are fairly straightforward. The third is a bit more complex. Udall, along with Sen. Jeff Merkley (D-OR), say there’s broad agreement on the idea to force old-school filibusters. If members want to keep debating a bill, they’ll have to actually talk. No more lazy filibusters.

But how would that actually work? In an interview Wednesday, Udall explained the ins and outs of that particular proposal.

“What we seem to have the most consensus on, is what I would call… a talking filibuster,” Udall told me. “Rather than a filibuster which is about obstruction.”

As things currently stand, the onus is on the majority to put together 60 votes to break a filibuster. Until that happens, it’s a “filibuster,” but it’s little more than a series of quorum calls, votes on procedural motions, and floor speeches. The people who oppose the underlying issue don’t have to do much of anything if they don’t want to.

Here’s how they propose to change that. Under this plan, if 41 or more senators voted against the cloture motion to end debate, “then you would go into a period of extended debate, and dilatory motions would not be allowed,” Udall explained.

As long as a member is on hand to keep talking, that period of debate continues. But if they lapse, it’s over — cloture is invoked and, eventually, the issue gets an up-or-down majority vote.

DDay at FDL has a thread up that offers a more detailed explanation.  This includes a bit on what is being called ‘continuous debate’ which sounds a lot like that Jimmy Stewart movie “Mr. Smith goes to Washington” or what every one was hoping for when Bernie Sanders started talking a few weeks ago.

After 41 Senators or more successfully maintain a filibuster by voting against cloture, they would have to hold the floor and go into a period of extended debate. Without someone filibustering holding the floor, cloture is automatically invoked, and the legislation moves to an eventual up-or-down vote, under this rule change.

This would institute the actual filibuster. The Majority Leader would have the capacity, which Harry Reid says he doesn’t have now, to force the minority to keep talking to block legislation. It becomes a test of wills at this point – whether the minority wants to hold out for days, or whether the majority wants to move to other legislation.

Here’s hoping we can fix our broken government that is driven by corporate cash and interests and railroaded by imperious Senators.  I’m not very hopeful that congress can actually fix itself, but I guess we’ll see.  I will say that I do think Tom Udall is a good man. He’s one of the people that is fighting for an improved process.

I still have Louisiana and New Orleans on my mind right now. We have a new headline in our ongoing BP Oil Gusher Saga. This is from Raw Story. It appears the company that owns the rig–Transocean–is refusing to co-operate with the federal oil spill probe. I just want to find out what went wrong so we don’t ever repeat it.  I’m sure all they are thinking about is the upcoming lawsuits.

Transocean said the U.S. Chemical Safety Board does not have jurisdiction in the probe, so it doesn’t have a right to the documents and other items it seeks. The board told The Associated Press late Wednesday that it does have jurisdiction and it has asked the Justice Department to intervene to enforce the subpoenas.

Last week, the board demanded that the testing of the failed blowout preventer stop until Transocean and Cameron International are removed from any hands-on role in the examination. It said it’s a conflict of interest. The request is pending.

Our economy is in sad shape down here and a good part of it is due to Transocean’s role in destroying livelihoods and life around the Gulf of Mexico.  Human lives aren’t the only thing still struggling from the gulf gusher.  Here’s some local news on that.

Scientists at the institute of Marine Mammal Studies in Gulfport are studying why two endangered manatees died near the Gulf Coast in the past two weeks.

According to the Institute’s Executive Director Dr. Moby Solangi, cold water killed the manatees, but they should have migrated to warmer water.

Scientists are finding an unusually large number of Gulf of Mexico animals out of place since the BP oil spill began.

“It is no different than having a forest fire,” Dr. Solangi said Thursday. “The oil spill expanded, it went thousands of square miles and as their habitat shrunk, these animals moved to areas that were not affected.”

The problem, according to Dr. Solangi, is those unaffected areas were also unfamiliar to the animals.

Too many turtles, for instance, wound up in waters off the Mississippi coast, where they didn’t understand the food supply.

300 turtles died in Mississippi.

Many more were caught by fishermen.

“In the past years, we would get one or two or maybe three animals, this year we had 57,” Dr. Solangi said.

He and his staff at the Institute for Marine Mammal Studies are now caring for dozens of sea turtles.

Of course, turtles in distress have to be  swimming through some pretty nasty stuff in their environment. The shores along the Gulf are still oiled. Here’s a story about 168 miles of coast in Louisiana alone.  This is from New Orleans own Times Picayune. Yes, folks, every single story I’m linking to on this is no more than a day old.  We’re still living this nightmare down here.

Louisiana’s coastline continues to be smeared with significant amounts of oil and oiled material from the BP Deepwater Horizon disaster, with cleanup teams struggling to remove as much as possible of the toxic material by the time migratory birds arrive at the end of February, said the program manager of the Shoreline Cleanup and Assessment Teams, which are working for BP and the federal government.

There are 113 miles of Louisiana coastline under active cleanup, with another 55 miles awaiting approval to start the cleanup process, according to SCAT statistics. Teams have finished cleaning almost 72 miles to levels where oil is no longer observable or where no further treatment is necessary.

But that’s not the whole story for the state’s coastline. According to SCAT statistics, there’s another 2,846 miles of beach and wetland areas where oil was once found but is no longer observable or is not treatable.

Gary Hayward, the Newfields Environmental Planning and Compliance contractor who oversees the SCAT program, said that large area will be placed into a new “monitor and maintenance” category, once Louisiana state and local officials agree to the procedures to be used for that category.

“With rare exceptions, most of the marshes still have a bathtub ring that we have all collectively decided we aren’t going to clean any more than we already have because we’d be doing more harm to the marshes than the oil is going to be doing to them,” Hayward said.

Raise your hand  if you heard any thing about any of this on your local newspaper or the national TV stations.  We’re so out of sight and out of mind down here that some times I wonder if we’re even considered part of the country.  You do realize that a majority of water-related commerce and a majority of oil comes through our state, don’t you?

The South American country of Brazil is looking forward to incoming-President Dilma Rousseff.  The Nation has an article that spotlights the country’s first female elected head of state.  I only hope to see a day like that for our country.  I’d also like to end the Reagan legacy and get a real Democrat back in the White House.  Yes, I’m clapping for Tinkerbelle.

When the confetti was still falling after her victory at the polls on October 31, Dilma Rousseff, Brazil’s first female president-elect, said, “I want to state my first commitment after the elections: to honor Brazil’s women so that today’s unprecedented result becomes a normal event and may be repeated and enlarged in companies, civil institutions and representative entities of our entire society.”

In a country where women have typically played a limited role in politics, the election of a woman to Brazil’s highest office signals a major break from the past. But Rousseff’s term will likely be marked by continuity with her predecessor, Luiz Inácio Lula da Silva. Lula, a member of the Workers’ Party (PT), is leaving office with 87 percent support in the polls. An economist, PT bureaucrat, chief of staff under Lula and former guerrilla in the anti-dictatorship movements of the 1960s and ’70s, Rousseff was handpicked by Lula to follow his lead as president. When she is sworn in on January 1, she will inherit Lula’s popular legacy and will be further empowered by the fact that her party and allied parties won a majority of seats in the Senate and Congress. Not even Lula counted on this much support.

Well, at least somewhere, women are getting their due.  I’m getting tired of living through stories where women in the U.S. watch jobs they should have go to less qualified people.  Then, they get to do all the work without the title.  What’s worse is when the boyz club in power make you participate in the charade of celebration and finding the royal heir. Like that legitimizes their malfeasance!  Here’s yet another example in a  WSJ story about Elizabeth Warren searching for a person for the job she would hold if the world weren’t so upside down.  It seems less and less about qualifications and knowledge these days and more and more about appearances and appeasing the old boyz.  Money screams!

White House adviser Elizabeth Warren and a top lieutenant are quietly asking business and consumer groups for names of people who might run the new Consumer Financial Protection Bureau, people familiar with the matter said.

The hunt suggests that Ms. Warren, a lightning rod for some bankers, might not be selected to lead the bureau, a centerpiece of the Dodd-Frank financial overhaul bill that passed this summer. Still, many liberal groups will push to get her in the post.

President Barack Obama’s choice could signal how he intends to deal with resurgent Republicans in Congress. The feelers to business groups serve as a reminder that any nominee would likely need support from at least seven Republicans in the Senate to win confirmation.

Among the names being discussed are Iowa’s attorney general, Tom Miller; New York state bank regulator Richard Neiman; and former Office of Thrift Supervision director Ellen Seidman.

The reality is Obama fights for nothing but Obama. I know there are other Obama appointments coming up shortly and I’m trying to get a grasp on what I want to discuss with you on the proposed replacements for Larry Summers.  Well, I know what I want to discuss but it’s more like trying to figure out how to describe what I see as the problem. As some one who rides both sides of the finance and economics line, I have some insight that many don’t have.  Finance is where you make the money and it’s really based on chimera.  I know the details and the proofs behind asset pricing models and it’s simply smoke and mirrors.  Economics is where the brains and the real insight exists. There is going to most likely be a bland, uninspired replacement for Larry Summers.  A finance person will undoubtedly win that appointment.  Hence, we will get smoke and mirrors and meaningless numbers.

Once again, it’s the vision thing.  All these appointments seem to reek of employing micromanaging corporate bureaucrats that are part of the problem.  They can crank through the data but they can’t put it into perspective.  As old President Bush used to say, no one seems to be good at the “vision thing”.  No one is crafting a  blue print that incorporates a better big picture based on what we already know.  The Great Depression and the inflationary 70s–and definitely the failures of Reagan’s voodoo economics–are full of lessons that every one seems to be ignoring.   We’re seeing the appointment of types that just muck around in the already mucked up bureaucracy decimated by Dubya Bush whose only inspiration appeared to be blowing things up like a psychopathic third grade with a bunch of firecrackers and a pond full of frogs.

Finance people have tons of numbers in search of a theory.  They crunch that data until they come up with a hypothesis that fits their storyline.   Macroeconomists have a broader sense of what the system needs to look like in order to really change things.  Economics has theory proved endlessly by empiricists.  Finance people have run amok since the 1980s and really, it’s time to end overt data mining and look to bigger principles.

This White House seems really short on values, vision, and a blueprint to carry our country forward into this new decade. We need an economic strategy that includes real job creation; not imaginary ‘saved’ jobs.  We need to unwind any thing that’s too big too fail and empower small, facile, and agile companies.  Our money needs to be concentrated on developing strategies and resources that we can nurture and renew.  (No, corn ethanol is not the answer. Making higher education more expensive and less accessible to all is not the answer either.)  We need to find a way to fulfill our promises to the weakest among us.  Current income inequality is not only immoral but it’s at levels approaching the powder keg of revolutions.  (Have you listened to a Teabot recently?)   We can no longer be railroaded by the interests of the few just because they can afford to fund political campaigns.  No government law should incent a business to leave its community in need to search out obscene profits elsewhere because government policy encourages it.  We should not accommodate any country that buggers growth from us by proffering trinkets on credit.   Vision is not a difficult thing.  Fighting for what’s right should not be a difficult thing either unless you’re in the fight with the wrong motivation.

Compromise seems to come so easy these days because there’s nothing proffered but compromise.  The original positions are badly compromised from the get-go.  Law making is based on political victory and not victory for the country.  No one is shifting real strategies due to midterm elections because there’s never been an overarching plan to begin with.  Moving pieces around a chess board is not playing chess.  Government at the highest levels has just gotten to be a muddled process with no guiding principles.   The White House is intently putting mid-level bureaucrats from corporations and the Clinton administration in charge of making tasteless sausage.  It’s just making things even more muddled and more muddled is not the type of change people want.  No bold vision could ever include the likes  Timothy Geithner, Joe Biden, or  Bill Richardson in positions that require vision.  Instead, we have people of vision–like Elizabeth Warren–hunting for acceptable seat warmers.

Meh.

I would just like to say that the last two months of being more than a file cabinet has brought a lot of intriguing things to Sky Dancing.  We have a growing number of readers and front pagers and I find that all very exciting.  So, must other parts of the blogosphere.   WonktheVote’ s excellent piece ‘What if this is as good as the Obama administration gets? ‘ made Mike’s Blog Round up at Crooks and Liars. Another surprise showed up last night from Pew Research Center and the Pew Research Center’s Project for Excellence in Journalism. This time a reference and quote come  from BostonBoomer on Julian Assange and the Wikileaks.  Here’s their story and how we fit in.

Espousing a unique mix of politics, technology, free speech and transparency, WikiLeaks has captured the attention from bloggers in a way few stories ever do. It has been a focus of social media conversation for three weeks this month alone, with a discussion that moved from one dimension to the next. After centering on political blame, the value of exposing government secrets, and the importance of a free press, the debate took on yet a new angle last week.For the week of December 20-24, more than a third (35%) of the news links on blogs were about the controversy, making it the No. 1 subject, according to the New Media Index from the Pew Research Center’s Project for Excellence in Journalism.

“It should go without saying that I do not approve of Assange’s behavior if the allegations against him are true. Nevertheless, I still believe the allegations are very convenient for the powers that be,” declared Sky Dancing.

The Center produces something that’s called the New Media Report.  Here’s the description.

The New Media Index is a weekly report that captures the leading commentary of blogs and social media sites focused on news and compares those subjects to that of the mainstream press.

PEJ’s New Media Index is a companion to its weekly News Coverage Index. Blogs and other new media are an important part of creating today’s news information narrative and in shaping the way Americans interact with the news. The expansion of online blogs and other social media sites has allowed news-consumers and others outside the mainstream press to have more of a role in agenda setting, dissemination and interpretation. PEJ aims to find out what subjects in the national news the online sites focus on, and how that compared with the narrative in the traditional press.

In similar news,  Technorati just gave us a new badge early this morning. It’s a nice little green rectangle that says TOP 100 US POLITICS. We’re currently 95.  Not so bad for a blog that was just a file cabinet 2 months ago.

Our goals here include becoming part of the bigger conversation as well as providing more links and information to news items than we get via traditional main stream media outlets dominated by the concerns of advertisers and sources.  We complement that with our commentary and explanations and yours.    Yes.  They hear us now.

So what’s on your reading, blogging and celebration lists today?

I just learned way more than I ever wanted to know about Michelle Bachmann

The first time I ever saw Michelle Bachmann was when, as a brand new Congressperson from Minnesota, she hugged and kissed George W. Bush after the State of the Union Address. She was so affectionate toward him that I almost wondered why the Secret Service guys didn’t pull her off him. Here’s a you tube clip in which she explains the incident.

The reason I was reading up on Bachmann is that I was struck by the story at TPM today about Bachmann’s claim that she used to be a liberal Democrat, but she suddenly became an extreme right wing Republican after reading Gore Vidal’s novel Burr. Here’s the transcript of a Bachmann appearance in Michigan in which she recounts the story of her abrupt conversion.

Michigan is a tough state, but I do believe that Democrats, independents, Republicans, all make up fair-minded, reasonable people. I say that because I grew up in a Democrat state, and I have to share a little secret with you: I was a Democrat when I grew up. Because in Minnesota, they stamp that on your birth certificate! You know that, that’s how it works.

I didn’t realize until I went off to college one day — this is the honest to God truth — I was going off to college, and I was reading this snotty novel. It was written by Gore Vidal, and I was maybe like a junior in college, or — yeah, I think was maybe a junior in college. I was reading this snotty novel, and he was going after our Founders. And he was mocking them. And he was making fun out of them.

I was a reasonable, fair-minded Democrat. And another secret you need to know: My husband and I met in college. We worked on Jimmy Carter’s presidential campaign. It’s true, it’s true. This is like a 12-step meeting here today, you know that. Because I am here to admit to you, I’m a Minnesotan who had “DFL” – that’s what we call Democrats in our state — stamped on my birth certificate, worked for Jimmy Carter. The first time I ever went to Washington, DC, I went to dance at Jimmy Carter’s inaugural ball! It gets worse!

Until I was reading this snotty novel called ‘Burr,’ by Gore Vidal, and read how he mocked our Founding Fathers. And as a reasonable, decent, fair-minded person who happened to be a Democrat, I thought, ‘You know what? What he’s writing about, this mocking of people that I revere, and the country that I love, and that I would lay my life down to defend — just like every one of you in this room would, and as many of you in this room have when you wore the uniform of this great country — I knew that that was not representative of my country.

And at that point I put the book down and I laughed. I was riding a train. I looked out the window and I said, ‘You know what? I think I must be a Republican. I don’t think I’m a Democrat.’

And from that moment on, I recognized that it was the Republican Party, and conservatives in particular, who really got America — who we are, what we stand for, and are unashamed about the values that the Founders lived and died and shed their blood and their treasure for.

Good Grief! I can see why someone might think Gore Vidal is “snotty” (did she mean “snooty” or maybe “snobby”?) but he isn’t any more so than, say, William F. Buckley was.

At Salon’s War Room, Alex Pareene writes:

In my perhaps unrepresentative experience, Vidal’s historical fiction — especially “Burr” and “Lincoln” — are the only things Vidal ever wrote that conservatives like. (I mean, thank god Michele didn’t pick up “Myra Breckenridge.”) But those are the conservatives who, I guess, are adult enough to read a mostly historically accurate account of the Revolution in which the Founders are portrayed as recognizably human and not become offended that the book is not a literary adaption of the Schoolhouse Rock classic “No More Kings.”

OMG, what would have become of Bachmann if she had read Myra Breckenridge! I hate to even think about it.

Anyway, it turns out that Bachmann has been telling her silly conversion story for years. Pareene dug up several examples. The funniest one is an interview with George Will.

Bachmann, an authentic representative of the Republican base, had quite enough on her plate before politics. She and Marcus, a clinical psychologist, were raising their children — they had four then; they have five now — and, as foster parents, were raising some other people’s children, 23 of them, a few teenagers at a time.

Born in Iowa but a Minnesotan by age 12, Bachmann acquired what she calls “her family’s Hubert Humphrey knee-jerk liberalism.” She and her husband danced at Jimmy Carter’s inauguration. Shortly thereafter, however, she was riding on a train and reading Gore Vidal’s novel “Burr,” which is suffused with that author’s jaundiced view of America. “I set the book down on my lap, looked out the window and thought: ‘That’s not the America I know.’ ” She volunteered for Reagan in 1980.

Bachmann is married to a clinical psychologist? Wow, I’m going to have to take some time to digest that.

Oh wait, I just looked at his academic credentials:

Dr. Marcus Bachmann, president of Bachmann & Associates, has been a clinical therapist in the Twin Cities for more than 18 years. Marcus is a popular conference speaker with practical insights, biblical principles, and humor interwoven in his messages.

I believe my call is to minister to the needs of people in a practical, caring and sensitive way.

Dr. Bachmann received his Masters degree in education/counseling from Regent University located in Virginia Beach, Virginia. He received his Doctorate degree in clinical psychology from Union Graduate Institute located in Cincinnati, Ohio.

Are those places even accredited?