Okay, so I’m going to show you two nifty pie charts first at The Business Insider. They basically show how the federal balance is extremely unbalanced because expenses are growing and revenues are not growing at all. Henry Blodgett correctly points out that there’s quite a bit of growth in ‘entitlements’. Let me just point out that all this makes complete sense to me What do you get in an economy that has normalized around a 10 percent unemployment rate or higher if you count the things like disenfranchised workers and the underemployed and couple that with year after year after year after year of excessive tax cuts on the uberrich who happen to be the only ones making money? Well, you get more and more people that are reliant on unemployment and other government ‘entitlements’ and you get a huge revenue gap. This is about the most careless set of policy choices made that I’ve seen since I first read up on the Hoover administration and the start of the Great Depression.
The “expense” pie is growing like gangbusters, driven by the explosive growth of the entitlement programs that no one in government even has the balls to talk about. “Revenue” is barely growing at all.
As we’ll illustrate with more of Mary’s charts next week, the US cannot grow its way out of this problem. It needs to cut spending, specifically entitlement spending. We hereby announce that we’ll give a special gold star to the first “leader” with the guts to say that publicly.
I’ll give a box of gold stars to any one that points out to this blowhard that the way to remove the growing entitlements is to put people back to work. Also, giving tax money to rich people so they can invest in the BRIC economies and buy land where their money is parked in the Bahamas or Grand Caymans is a really, really stupid proposition. We’ve needed a real jobs program for some times. People with jobs pay taxes, buy things that are taxed, and don’t require entitlements. How absolutely stupid do you have to be to not get that? I don’t even need all those economics and finance degrees to figure that one out.
In the Friday Reads I mentioned that Fox News’ Roger Ailes was caught on tape encouraging colleagues to lie to Federal Investigators. Well, it seems that lying has finally caught up with one Republican operative. Maybe people will wake up to the Faux News’ and their dirty tricks now. Here’s what Barry Ritholtz had to say about his scoop on the indictment.
Here’s what I learned recently: Someone I spoke with claimed that Ailes was scheduled to speak at their event in March, but canceled. It appears that Roger’s people, ostensibly using a clause in his contract, said he “cannot appear for legal reasons.”
I asked “What, precisely, does that mean?”
The response: “Roger Ailes will be indicted — probably this week, maybe even Monday.”
Well, it’s Monday. Does Rupert Murdoch know where Roger Ailes is? Some times watching Karma unfold is a delightful thing.
I’m not sure if you’re a big enough masochist to spend time with the Sunday news shows anymore, but I do try to catch Christiane Amanpour and she delivered an interesting program yesterday. She had an exclusive interview with one of Gadhaffi’s sons. It was extremely interesting and I would recommend you go watch that segment. Amanpour actually traveled to Tripoli this weekend. We will now refer to the son as Tripoli Saif al-Islam Gadhafi since he seems about as in touch with reality as Baghdad Bob did back in the day.
There was a “big, big gap between reality and the media reports,” Gadhafi told Amanpour. “The whole south is calm. The west is calm. The middle is calm. Even part of the east.”
“Listen, nobody is leaving this country. We live here, we die here,” he insisted. “This is our country. The Libyans are our people. And for myself, I believe I am doing the right thing.”
“The President of the U.S. has called on your father to step down. How do you feel about that?” Amanpour asked.
“It’s not an American business, that’s number one,” said Gadhafi, who was dressed casually as he spoke with Amanpour. “Second, do they think this is a solution? Of course not.”
I don’t know about you, but I’m getting kind of tired of watching these jerks that we supported for some time prove exactly what is meant by the label “brutal dictator”. Could we just once fund and support some one like His Holiness the Dali Lama for a change? It’s no wonder we still get called ugly Americans.
LEWIS: …And the –the anger – the anger about the Wall Street bailouts, I think, is the beginning of the Tea Party. I mean the – the injustice of people being rewarded for failure and – and supported by the public purse, that was the source of the original outrage.
ZAKARIA: But it went in a libertarian direction…
LEWIS: It did…It – but – but a qualified libertarian direction, because a true libertarian would be outraged that these Wall Street banks are still being subsidized by the government. And there doesn’t seem to be any move on the right to – to remove those subsidies, not any – any serious one…But – but the politi – our leadership doesn’t have an interest in – a leadership that is intent on still stabilizing the financial system doesn’t have an interest in calling attention to the outrages of the financial system. So I think they – Wall Street got very lucky.
Wall Street did not get very lucky. Wall Street basically has a friend in the White House and tons of people in the Treasury Department. The Tea Party was distracted by the Health Care Bill. The kleptocracy is still at it. Listen to the interview, it’s an earful! Many of us think that were going to get a repeat of the global financial crisis some time soon. Lewis and I aren’t alone on that thought.
One of the things that’s really making me mad about the current conversation on budget cuts and higher education is the public’s ignorance on just exactly how many states have disabled tenure these days. Tenure has long been a pet peeve of right wing ideologues who feel that every one should be terminated like they are in the private sector. Basically, the private sector thrives on political firings and uses payroll cuts as the first line of defense when the bottom line is failing because of their bad, short-sighted, and overly-political decisions.
Here’s a list of states decimating tenure as we speak from articles in The Chronicle of Higher Education. You know, I’m really sorry that people have to work for private corporations and that their lives are subject to the whims of really mean people, but it’s really no excuse to take it out on those of us that have tried to carve a better way to exist. Take my word for it. Get yourself a union and they won’t be able to take advantage of you with out taking on a a million other people who have your back! Those of us in the public sector are willing to forego short term salary highs for long term job security. It’s evident that a new crop of governors want every one as miserable as employees in the private sector now. If they intend to do this to us, then I want those seven to eight digits salaries I’d be paid for the 3-5 year short brutal career on Wall Street as a PhD in Financial Economics. I even added a few old links to show you that this is nothing new. Believe me, tenure isn’t what most people outside of academic think it is …
The University of Louisiana system’s Board of Supervisors on Friday voted to approve new rules that will allow its institutions to more quickly dismiss faculty members, even those with tenure, whose programs have been closed.
At a time when the state’s financial climate makes it difficult for campuses to determine their budgets from year to year, that kind of flexibility is key, system officials said. But professors at the board meeting, including representatives of each of the system’s eight campuses, told the supervisors that such a move would erode the protection tenure provides and could ultimately make the system’s institutions unattractive to job seekers and lead current faculty members to leave.
The University of Nebraska at Lincoln is seeking to eliminate the jobs of 15 tenured faculty members as part of its latest round of budget cuts.
The proposed dismissals, which Chancellor Harvey Perlman announced this month, would save Nebraska about $2.7-million. They are part of a plan to reduce the university’s budget by $26-million, or 12 percent, in the wake of substantial state budget cuts. The new cuts come on the heels of layoffs, proposed in March, that would affect 55 faculty
An independent arbitrator on Friday ordered Florida State University to rescind layoff notices to several tenured faculty members and slammed how administrators there had decided which jobs would be cut.
In a major victory for the state’s faculty union, Stanley H. Sergent, a Sarasota-based lawyer picked by the university and the union to arbitrate the dispute, held that the university had failed to clearly justify its choices to eliminate certain positions, and had violated a provision of its faculty contract calling for it to try to protect the jobs of those faculty members who had continuously worked there the longest.
In his 83-page decision, Mr. Sergent wrote that the only reason the university had declared certain departments “suspended” was “to allow the effective layoff of all faculty and the selective recall of certain faculty,” apparently for the sake of creating a subterfuge to avoid having to comply with a contractual requirement that it lay off tenured faculty members last. Mr. Sergent characterized the reasoning used by a dean in eliminating one faculty member’s job as “arbitrary, capricious, and unreasonable.”
The arbitrator’s decision applies only to 12 tenured faculty members who belong to the campus chapter of the United Faculty of Florida, and does not cover nine other tenured faculty members who do not belong to the union and also received notices of pending layoffs last year.
Community colleges in Washington State could soon be able to lay off tenured faculty members much faster than normal, according to the Seattle Post-Intelligencer.
At its regularly scheduled meeting next month, the State Board of Community and Technical Colleges will decide whether to declare a financial emergency — a move allowed by a state law passed in 1981 to deal with budget crunches. Such an emergency would speed up the process for laying off tenured faculty members in that they would get only 60 days’ notice of layoffs and the grounds on which they could appeal the decision would be limited, the Post-Intelligencer reported.
I would also like to take this space to mention that I no longer have access to Social Security and that my state pension and the matches that I get from the State basically are what the private sector donates to social security on the behalf of private sector workers. Many states have pension plans that replace Social Security. Therefore, I’m personally not getting any thing ‘special’ from taxpayers. Also, when the defined benefit plan showed up short this year, they decreased the contributions to my optional retirement plan and the others who selected that option to make up the shortfall in the defined benefit pool. Wall Street stole my appreciation and then the state took more from me to pay for their problems in other folks’ annuities. Other state employees–like me–paid for that shortfall. It came from our compensation. I’ve just about had it up to here with reading a bunch of grumbly idiots on other blogs that have no idea how state employee pensions are managed and funded. If you want to go after high paying state employees that are worthless, try taking it out on the university football coaches and the damned governor’s staff for a change. It’s not us little guys!
Anyway, it’s Monday morning and I’m a curmudgeon today. Think I’ll spend the day with the TV off and I’ll stay here on Sky Dancing with the sane people! Now, where’s my coffee?
What’s on your reading and blogging list?
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Where are mainstream Republicans these days? What has happened to the party of Lincoln, Teddy Roosevelt and Eisenhower? Prior to the Reagan years, Republican women were front and center in volunteering for planned parenthood, supporting the ERA, and working for abortion rights. First Lady Betty Ford was a proud feminist and one of the first women to put women’s health issues–including women with drinking problems and breast cancer–on the map. President Richard Nixon was responsible for many of the agencies that protect the environment. The current party is chock-full of science denying Theocrats and economics-denying Corporate Fascists. It’s making a sham out of the two party system. We may now have a window open wide enough to stop some of this. We should ready ourselves with the facts and act now.
An online conversation has been initiated with the publication of Ron Brownstein’s article in the National Journal on Thursday called ‘State’s Rights’. It is front and center in starting a discussion among Democratic bloggers, journalists, and other liberal/progressive sympathizers. States rights was code for the right to own slaves during the first 100 years of this country’s existence. It is now code for the right to discriminate against the GLBT community, insert the government into an individual woman’s gynecological care, and bust unions. The racial overtones have not gone away since the worst of the hateful verbiage is aimed at stopping any policy goal attempted by President Obama.
Any one who has read me over the last few years knows that I am not a big fan of this President and I’m even less of a fan of his zealous followers. However, it would take a fairly dim bulb to not see the racism implicit in many of the Republican attacks against him. Attacks range from the extremely bizarre personal assertions that he is a secret Muslim, foreign born, and a devout socialist/communist to a complete rewrite of any policy initiative.
Obama is about as conservative of a Democrat as one can find these days which has been one of my issues with him all along. His actions and words have not stopped the endless attacks on absolutely everything he attempts by Republicans and their monied interests. These tactics were first used against former Democratic President Bill Clinton but have reached some kind of hyper-extortionate apex today. It’s to the point that I firmly believe some of these Republican extremists would rather take the country down with them than negotiate something other than an ideologically pure outcome. Brown’s article and examples focus on the current bloc of extremist Republican governors with their take no prisoners policies. While his focus is mostly on the impact on Obama, I believe his larger point should entice us to think bigger.
But one senior Obama administration official, who also had a close view of Clinton’s interaction with Republican governors, contends that ideology is trumping interest for the governors in many of these new disputes. Health care reform, for instance, asks states for no new financial contribution to expand coverage through 2016 and only relatively small participation thereafter; because 60 percent of the uninsured live in the states where a Republican holds the governorship, their residents would receive the most new federal aid if the law survives. “One had the sense in the mid-1990s that conservative governors were doing whatever was in the best interest of their state,” the senior official said. “This time, the Republican governors appear determined to make an ideological point, even if it costs their state a great deal.”
Whatever the governors’ motivations (one man’s posturing, after all, is another man’s principle), their unreserved enlistment into Washington’s wars marks a milestone. It creates a second line of defense for conservatives to contest Obama even after he wins battles in Congress. It tears another hole in the fraying conviction that state capitals are less partisan than Washington. And it creates a precedent that is likely to encourage more guerrilla warfare between Democratic governors and a future Republican president.
American politics increasingly resembles a kind of total war in which each party mobilizes every conceivable asset at its disposal against the other. Most governors were once conscientious objectors in that struggle. No more.
I can remember attending Republican conventions in the early 1980s during the first hint of the unholy alliance between religious fanatics along the line of a Christian Taliban with the John Birch Society version of libertarians. It was a terrifying spectacle. At the time, the more pro-business and hoity-toity conservative elements in the party were willing to use them like pet pit bulls because they were incredibly organized at the grass roots level and they voted. Republicans traditionally had a much more difficult time turning out voters and their GOTV machines were dwarfed by the Democrats who could rely on well organized and managed union membership. This is one of the reasons why there is also the huge attack on the last standing unions now. They’re worth a fortune come election time and no Republican campaign strategist worth anything underestimates them. We can clearly no longer underestimate the religious zealots or those gullible to the rants of Glenn Beck. They’ve become a contagion.
Back in the day, the young me argued that this form of big daddy government intervention put forth by religionists and Birchers was basically enabling powerful business monopolies and drop kicking the constitutional mandate to deny the establishing of a state religion. It was against the very core ideology of historical Republicanism. I got no where. This was especially true as Nixon’s southern strategy began to work its evil influence on bringing in the remaining racist elements of the old Dixiecrats who frankly were all for the government taking care of any one that wasn’t like them. This added the last nail in the traditional coffin of the party of Lincoln. That sin is now manifesting in the xenophobia against Muslims and Hispanics in addition to African Americans topped by the anti-science bias from the religionists and the pro-monopoly market creation from the corporatists.
It appears that many old school Republicans now see the results of opening this Pandora’s box. They are horrified and have been trying to stuff the demons back into the chest. Now, you see those same folks that opened their kennels filled with poodles to the pit bulls are now acting absolutely appalled by the rising influence of absolutely whacked extremists like Glenn Beck. Scarborough, Rove, and Kristol are currently trying to put the Beckheads back into the box. Those of us that don’t vote Republican could afford to ignore this if it were just some intraparty feud. It’s gone beyond that with the rise of tea party hysterics and billionaire libertarian Daddy Warbucks’ propaganda machines. In many states, the Republican party infrastructure has been commandeered by the pit bulls. The poodles–like Arianna Huffington and Markos–have long left their confines. They are morphing traditional Democratic Party concerns. The same divisive issues that used to motivate the base to do the GOTV and show up at the polls has managed to bring this new crop of Republican governors and congressional members to a critical mass. They refuse any middle or even right of middle ground. They won’t negotiate on the usual country club Republican issues. It’s no longer a GOTV ploy for them because they are true believers.
Keep in mind, it’s ideology, not practical concerns, that lie at the heart of these governors’ reactionary moves. The states turning down investments for high-speed rail, for example, were effectively handed a gift — jobs, economic development, improved infrastructure — but Republicans like Rick Scott and Scott Walker turned down the benefits because of a philosophical opposition, deliberately hurting their state in the process. The administration was effectively throwing a life-preserver to a Republican who’s drowning, only to be told, “We don’t like government life-preservers.”
The same is true of health care, which would be a boon to states, but which far-right governors resist for reasons that have nothing to do with public policy.
Bill Clinton faced a watered-down version of these Republican pit bulls over a decade ago. Dealing with them is how he got his reputation for triangulation. He seemed uniquely placed to make some small progress then–that now seems impossible now–because of his past position as a southern governor with a decidedly homespun and folksy manner. President Obama has none of this going for him. He is surrounded by Businesscrats that are unlikely to fill the void. The only thing he’s managed to do is to gain the ear of the Chamber of Commerce types. These folks are hardly going to be sympathetic to social justice or middle class bread-and-butter issues. Additionally, right wing media sources and timid main stream media sources are playing into the hands of the outrageous. We have media enablers instead of investigative journalists.
That is why it is absolutely essential that whatever is left of the Democratic grassroots need to make one extremely loud noise right now. It is unconscionable that a rewrite of history, science, and economic is taking place while many of us are simply standing around with gaping mouths. I’ve spoken many times about the absolute lack of economics that is driving austerity programs. It’s already showing signs of slowing economic growth down at a time when unemployment is unacceptably high. This is only going to multiply as the days and months unfold. Ask yourself if we can really afford another recession?
Near the forum’s conclusion, Massachusetts Institute of Technology climate scientist Kerry Emanuel asked a panel of journalists why the media continues to cover anthropogenic climate change as a controversy or debate, when in fact it is a consensus among such organizations as the American Geophysical Union, American Institute of Physics, American Chemical Society, American Meteorological Association and the National Research Council, along with the national academies of more than two dozen countries.
“You haven’t persuaded the public,” replied Elizabeth Shogren of National Public Radio. Emanuel immediately countered, smiling and pointing at Shogren, “No, you haven’t.” Scattered applause followed in the audience of mostly scientists, with one heckler saying, “That’s right. Kerry said it.”
Such a tone of searching bewilderment typified a handful of sessions that dealt with the struggle to motivate Americans on the topic of climate change. Only 35 percent of Americans see climate change as a serious problem, according to a 2009 poll by the Pew Research Center for the People & the Press.
It’s a given that an organized and well-funded campaign has led efforts to confuse the public regarding the consensus around anthropogenic climate change.
These extremists are even rewriting the already right wing Ronald Reagan’s legacy to make it seem more extreme to support the legitimacy of their radical agendas. Here’s an example I found this morning on ThinkProgress on Reagan’s views on unions. Scott Walker’s fantasy world includes his vision of being Reagan’s heir. Yet, here is Reagan himself on the union movement in Poland during one of his radio addresses to the nation.
REAGAN: Ever since martial law was brutally imposed last December, Polish authorities have been assuring the world that they’re interested in a genuine reconciliation with the Polish people. But the Polish regime’s action yesterday reveals the hollowness of its promises. By outlawing Solidarity, a free trade organization to which an overwhelming majority of Polish workers and farmers belong, they have made it clear that they never had any intention of restoring one of the most elemental human rights—the right to belong to a free trade union.
The one thing that I learned early on when dealing with these people from within the Republican party itself in the pre-Reagan and early Reagan days is that they believe their courses are so righteous that they will lie and do anything to support them. If we do not hold their actions and lies to the light of day, our country will be completely overrun by by folks that are anti-science, anti-economics, anti-rational thought, and anti-democracy. We’ll have a theocratic plutocracy in fairly short order.
It is absolutely imperative that we put pressure on the media and Democratic politicians to fact check these people, stand up to them, and expose their lies to the public. It is possible that we’ve caught a tipping point in their overreach process. If this is the case, it means we have to work with the momentum now. Nothing short of our democracy and our children’s future is at stake here. We cannot be complacent and we cannot be left with mouths wide opened. We also cannot rely on leadership from the very top. If you’re in one of those states that is acting up, act now!!! Find and support your version of the Wisconsin 14.
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Well, I didn’t make it to the Gulf Coast because I got stuck editing an intro for a journal at the last minute. I’ll have to try again. It just seems like so many things just keep springing up all over the place these days.
David Cay Johnston of Tax.com has a real eye opener up today on who actually contributes to the pension plans of state workers in Wisconsin. Here’s a death knell for a meme. The question is this however. Will any one bother to hear it?
Out of every dollar that funds Wisconsin’ s pension and health insurance plans for state workers, 100 cents comes from the state workers.
How can that be? Because the “contributions” consist of money that employees chose to take as deferred wages – as pensions when they retire – rather than take immediately in cash. The same is true with the health care plan. If this were not so a serious crime would be taking place, the gift of public funds rather than payment for services.
Thus, state workers are not being asked to simply “contribute more” to Wisconsin’ s retirement system (or as the argument goes, “pay their fair share” of retirement costs as do employees in Wisconsin’ s private sector who still have pensions and health insurance). They are being asked to accept a cut in their salaries so that the state of Wisconsin can use the money to fill the hole left by tax cuts and reduced audits of corporations in Wisconsin.
The labor agreements show that the pension plan money is part of the total negotiated compensation. The key phrase, in those agreements I read (emphasis added), is: “The Employer shall contribute on behalf of the employee.” This shows that this is just divvying up the total compensation package, so much for cash wages, so much for paid vacations, so much for retirement, etc.
The collective bargaining agreements for prosecutors, cops and scientists are all on-line.
Reporters should sit down, get a cup of coffee and read them. And then they could take what they learn, and what the state website says about fringe benefits, to Gov. Walker and challenge his assumptions.
Spending cuts approved by House Republicans would act as a drag on the U.S. economy, according to a Wall Street analysis that put new pressure on the political debate in Washington.
The report by the investment firm Goldman Sachs said the cuts would reduce the growth in gross domestic product by up to 2 percentage points this year, essentially cutting in half the nation’s projected economic growth for 2011.
The analysis, prepared for the firm’s clients, represents the first independent economic assessment of the congressional budget fight, which could lead to a government shutdown as early as next week.
Nonetheless, Republicans are unlikely to easily retreat from their insistence on more than $60 billion in reductions in federal spending as a condition of continuing funding for the government through the rest of the year.
A spokesman for House Speaker John A. Boehner of Ohio said the Goldman Sachs report represented “the same outdated Washington mind-set,” comparing it to the thinking behind the 2009 Recovery Act that released federal funds to counter the effects of the recession.
Republicans live in their own private Washington, I swear. I’ve never seen a bunch of people so clueless about so many things. Here’s a good poll showing why they get away with what they get away with … seems like about 1/4 of our population is pretty damned stupid.
I am seldom surprised by our poll findings, but this month’s tracking poll produced a doozy. Twenty-two percent of the American people think the Affordable Care Act has been repealed, and another 26 percent aren’t sure. Those are surprisingly large numbers even with the 52 percent who still know it is the law of the land.
How could a repeal “vote” in the House — however dramatic but still, only symbolic — be misunderstood as an actual repeal by so many Americans?
First, people are very busy just getting through the day and they don’t have a lot of time to sort through news reports about the policy making process. They see the word “repeal” in the local paper or hear it on TV and think the law has been repealed. Second, there may be some partisan wishful thinking going on; 30 percent of Republicans think the law has been repealed while only 12 percent of Democrats do. But overall, it is obvious that the knowledge of basic civics is pretty low. Maybe it’s because “Schoolhouse Rock” is no longer airing on Saturday morning TV explaining how government works.
If they’re misinformed, they likely get their news from Fox and Roger Ailes. There was more on the make up the news as you go along cable network in the NYT today: “Fox News Chief, Roger Ailes, Urged Employee to Lie, Records Show”. That’s quite a headline. But, the headline appears justifiable since it’s been revealed there’s a tape of Ailes saying just that to Judith Regan. Read the entire article. It’s tawdry and full of intrigue. I can’t wait to see the movie.
Now, court documents filed in a lawsuit make clear whom Ms. Regan was accusing of urging her to lie: Roger E. Ailes, the powerful chairman of Fox News and a longtime friend of Mr. Giuliani. What is more, the documents say that Ms. Regan taped the telephone call from Mr. Ailes in which Mr. Ailes discussed her relationship with Mr. Kerik.
It is unclear whether the existence of the tape played a role in News Corporation’s decision to move quickly to settle a wrongful termination suit filed by Ms. Regan, paying her $10.75 million in a confidential settlement reached two months after she filed it in 2007.
Depending on the specifics, the taped conversation could possibly rise to the level of conspiring to lie to federal officials, a federal crime, but prosecutors rarely pursue such cases, said Daniel C. Richman, a Columbia University law professor and a former federal prosecutor.
If you’re like me and you’re still trying to dissect the last financial sector crisis, you should check out “Four Fallacies of the Crisis” over at Project Syndicate by Jagdish Bhagwati. This was my personal favorite.
Some critics of Obama’s Keynesian stimulus spending, among them the economist Jeffrey Sachs, claim that what the US needs is “long-term” productivity-enhancing spending. But this is a non sequitur. As a Keynesian, I believe that the state paying people to dig holes and then fill them up would increase aggregate demand and produce more income. But Keynes was no fool. He understood that the government could eventually get huge returns if the money was spent on productivity-enhancing investments rather than on “directly wasteful” expenditure-increasing activities.
The question, then, is simple: which investments offer the greatest economic payoffs? But it is also fraught: when your bridges are collapsing, your school buildings are in disrepair, teachers are underpaid and have no incentive to be efficient, and much else needs money, it is not easy to decide where scarce money should be spent.
But one “structural” consideration is not well understood. Given the need to cut the deficit in the future and the need to increase it now in order to revive the economy, the problem facing Obama is how to shift smoothly from top gear into reverse. Clearly, the lesson is that governments need to attach less weight to spending that cannot one day be cut.
This was brought home to me when I saw an unfinished high-rise building in Osaka. A relic of the bust that
This is Yokohama's Tower of Bubble ... there's quite a few of them dotting the Japanese skylines.
followed Japan’s real-estate boom two decades ago, it became known as the Tower of Bubble.
Nothing like the visual of a Tower of Bubble to bring on the urge for another cup of coffee.
Caught between their boss’ anti-lobbyist rhetoric and the reality of governing, President Barack Obama’s aides often steer meetings with lobbyists to a complex just off the White House grounds — and several of the lobbyists involved say they believe the choice of venue is no accident.
It allows the Obama administration to keep these lobbyist meetings shielded from public view — and out of Secret Service logs kept on visitors to the White House and later released to the public.
Well, isn’t that special?
So, what’s you your reading and blogging list today?
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Chris Christie, the governor of New Jersey, said Wednesday that his counterpart in Indiana, Mitch Daniels, is the only prospective Republican presidential candidate who is honestly talking about how to confront the nation’s biggest fiscal challenges.
Jacksonville’s Florida Times-Union reports that former Florida Gov. Jeb Bush favors Indiana Gov. Mitch Daniels for president in 2012.
Bush reportedly told a private reception for business leaders, “Mitch is the only one who sees the stark perils and will offer real detailed proposals.”
Daniels’ speech at CPAC 2011 was very well received, and get this–George Will introduced Daniels to the CPAC audience as “the thinking man’s Marlon Brando,” apparently because Daniels likes to right around the Indiana countryside on a Harley Davidson chopper. Judge for yourself.
Mitch Daniels on his Harley
Marlon Brando in "The Wild One"
Daniels has some other problems too. For one thing he thinks Republicans should forget about social issues and focus on economic ones (cutting deficits, natch). Conservatives are not at all happy with Daniels for asking Indiana Republican legislators to withdraw their proposed “right to work” bill. In addition, he reportedly is a pretty serious policy wonk who likes to talk to his fellow wingnuts as if they were adults.
By far, the most important speech at CPAC was delivered by two-term Gov. Mitch Daniels of Indiana at Friday night’s banquet. It was an eloquently crafted, intellectually compelling call to arms against the red-ink forces of the national debt. Daniels, who was George W. Bush’s budget director, proposed dramatically revamping Social Security and Medicare as he called for “an affectionate thank you to the major social welfare programs of the last century.”
What was most striking about Daniels’ speech, which inspired careful listening rather than pep-rally applause, was that it treated his CPAC audience as adults rather than as just another constituency group demanding pandering. Whether it was dismissing the easy-answer attacks on earmarks (“in the cause of national solvency, they are a trifle”) or suggesting that most voters do not appreciate the sharp-edged rhetoric of the Republican right (“it would help if they liked us, just a bit”), Daniels’ speech was an exercise in speaking truth to conservatives who have the power to derail a presidential candidacy.
Come on, that’s never going to work with Republican primary voters!
On top of that, several media outlets reported today that Daniels was busted for drugs when he was in 1970 when he was a junior at Princeton. And it wasn’t for possession of just a little pot, either. Read the rest of this entry »
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There are several headlines today that you really don’t want to see if you’re hoping for an economic recovery. This one is especially chilling: ‘Home prices fall 4.1%, near 2009 lows’. There are good reasons this doesn’t bode well. The first is that the construction sector is a large economic generator in our economy and it also is a job generator. The second is that when people feel less wealthy, they spend less. Both tend to have recessionary effects. It doesn’t look like things will improve either.
And things may get a lot worse, said Robert Shiller, a Yale economist and half of the Case-Shiller team, in a web conference after the report’s release.
“There’s a substantial risk of home prices falling another 15%, 20% or 25% more,” he said.
Shiller cited a few reasons for his bearish stance. The government is expected to reduce the presence of Fannie Mae and Freddie Mac in the housing market. These agencies currently provide loan guarantees for about two-thirds of mortgages. If they fade away, private mortgage money will have to fill the gap and the cost of mortgage borrowing will surely rise. That will hurt home prices.
There’s also talk of possibly ending the mortgage interest tax deduction for many homeowners. Meanwhile, the weak economic recovery may be threatened by higher oil prices as a result of turmoil in the Mideast.
At the web conference, Shiller’s index partner Karl Case wasn’t much more optimistic.
“I see [the market] bouncing along the bottom with a slight negative trend,” said Case, an economics professor emeritus at Wellesley College.
Unrest in Libya and Bahrain are also driving up oil prices. Both of these countries are oil producers. This also drove stock market prices lower. This is also not good as stock market decreases also make people feel poorer so they spend less. Additionally, higher gas prices forces people to readjust their budgets.
U.S. investors returned from the long holiday weekend in a selling mode amid increased concern about developments in North Africa and the Middle East.
Global financial markets recoiled overnight as Libya appeared on the verge of civil war and continuing protests in Bahrain sent crude prices surging. After Brent crude futures approached $110 per barrel in London, benchmark West Texas Intermediate (WTI) surged above $91 per barrel in New York trading midday Tuesday.
Higher energy prices threaten the global economic recovery, on which much of the two-year rally in stocks has been based. Heading into this week, the S&P was up 100% from its March 2009 low, meaning both that continued growth is “priced into” stocks and there a lot of paper profits waiting to be booked.
In recent trading, the S&P was down 1.6% while the Dow was off 1.1% and the Nasdaq by more than 2%.
On top of this, we still have high unemployment coupled with increasing threats of lay offs for state and local workers. Any lay offs or decreases in wages and benefits has the same effect: it makes people feel poor and makes them re-arrange their budgets. Unions have been largely responsible for benefits and salary levels enjoyed by all workers. Any attempts to further erode collective bargaining is sure to suppress wages and benefits in all sectors. Several polls today seem to indicate that most people are aware of this and oppose weakening unions. Here’s one such poll from USA Today.
Americans strongly oppose laws taking away the collective bargaining power of public employee unions, according to a new USA TODAY/Gallup Poll. The poll found 61% would oppose a law in their state similar to such a proposal in Wisconsin, compared with 33% who would favor such a law.
All of this uncertainty is sure to impact the economic outlook. Many of these are indicative further weakening. Remember, tax cuts for businesses work only if they have revenues. They won’t have increased revenues without customers. Higher oil prices–as well as higher prices for other commodities like food–are likely to transfer dollars away from discretionary spending. We could see further weakening in the demand for consumer durables like cars and big appliances. I’ve noticed some rather spectacular sales this weekend for these items. We’ll see in a few months if those commercials today are acts of desperation to unload inventory.
It appears that many in government are purposefully trying to shrink not only the government but also the economy. I’m not sure why every one has decided to go to faith based tax cuts rather than rely on economic theory. It’s as if years of experience and evidence have been thrown out the window. Many Republican governors are doing the same thing that created budget problems for Wisconsin. They are creating deficits by passing tax cuts benefiting the rich and passing the sacrifice to the poor and middle class. The poor and middle class are the consumers that really matter in an economic crunch. They spend most of their money and they do it on goods that generate local jobs. Remember, this just happened at the national level too. We’ve seen tax cuts go predominantly to the wealthy while talk of benefit cuts are rampant.
State budgets across the country are in disarray as a weak economy, the end of tens of billions in Recovery Act funds, and a GOP-led House that is pushing for deep cuts to many programs that benefit state and local governments set the stage for massive in shortfalls over the next two years. Instead of making the tough choices necessary to help their states weather the current crisis with some semblance of the social safety net and basic government services intact, Republican governors are instead using it as an opportunity to advance several longtime GOP projects: union busting, draconian cuts to social programs, and massive corporate tax breaks. These misplaced priorities mean that the poor and middle class will shoulder the burden of fiscal austerity, even as the rich and corporations are asked to contribute even less.
Follow that Think Progress link to find some of the worst states with worst abuses. Arizona tops the list.
Now, however, Governor Jan Brewer is proposing to kick some 280,000 Arizonans, mostly childless adults, off the state’s Medicaid rolls. Brewer claims such a move is the only way to get the state’s fiscal house in order, as it would save $541.5 million in general funding spending. Brewer also wants to save $79.8 million by dropping 5,200 “seriously mentally ill” people from the state’s Medicaid program. Instead of balancing out these draconian cuts with additional revenue increases or simply not making the cuts in the first place, Brewer instead signed $538 million in corporate tax cuts into law two weeks ago.
Other states to watch out for are New Jersey, Texas, Michigan, Ohio and of, course, Wisconsin. Here’s an example from Florida.
Scott’s radical budget proposal, unveiled at a tea party event, includes $4.6 billion in spending cuts that would result in the direct loss of more than 8,000 jobs. It would also privatize large areas of state services, including juvenile justice facilities, Medicaid, and some hospitals. Education spending would be cut by more than $3 billion and teachers and other public employees would see their pensions under threat. Such deep cuts in essential programs and services are necessary to offset Scott’s proposal to cut corporate and property taxes by at least $4 billion.
If these things occur, you can look forward to a return to the Depression Years. I guarantee it.
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The Sky Dancing banner headline uses a snippet from a work by artist Tashi Mannox called 'Rainbow Study'. The work is described as a" study of typical Tibetan rainbow clouds, that feature in Thanka painting, temple decoration and silk brocades". dakinikat was immediately drawn to the image when trying to find stylized Tibetan Clouds to represent Sky Dancing. It is probably because Tashi's practice is similar to her own. His updated take on the clouds that fill the collection of traditional thankas is quite special.
You can find his work at his website by clicking on his logo below. He is also a calligraphy artist that uses important vajrayana syllables. We encourage you to visit his on line studio.
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