George Rebane
The surface calm during our cool summer is beguiling and more than misleading. Over the years RR readers have had an early heads up on a number of national and international issues affecting us that are now coming home to roost, and several of them are already here. All of them were pooh-poohed by the local Left, taking the cue from their national leadership. Here’s a short list.
Greece is still in the tank and sinking deeper. Now the IMF is trying to quietly muscle in ahead of other creditors as it sees Greece hitting the bottom next year despite the Eurozone bailouts which have had no impact on Greece’s GDP growth. There simply is no there there; Greece is a country that could economically disappear from the world scene with no impact save a haircut to those who lent it money. Some time ago RR readers received a formula with which compute the probability of default; it worked in spades. Other countries like Spain, Portugal, Italy, and even Belgium are standing in the EU’s default line.
Incipient financial ruin of America’s cities and states is acknowledged worldwide. Again our light thinking Left denied for years the role of public service unions and their pension planning with sleazebag politicians. Now we have witnessed a quiet pivot by progressives who are quietly trying to fix the unfixable without ever uttering things like SEIU. For a snoot full of how obvious the problem is to all but the national liberal chorus and, of course, the oblivians, read ‘The Unsteady States of America – Why the pensions nightmare is only just beginning’ in the 27jul13 Economist. Again, RR reported on this inevitability almost seven years ago when the SESF report presented to the local Board of Supervisors was risibly ignored.
The current poster child of municipal malfeasance and corruption is Detroit whose 700K citizens have been characterized by Michigan’s governor as innocent “good people” on whom this financial disaster has come like an unpreventable act of nature. Never mind that it is these same people who have continued to vote for the most corrupt collection of politicians decade after decade. Now they all are looking with expectant faces toward Washington for what could become the first of a national avalanche of bailouts and bondholder haircuts as at least 100 more cities are stewing in their own versions of such Chapter 9 fiscal fiascoes.
The surface calm during our cool summer is beguiling and more than misleading. Over the years RR readers have had an early heads up on a number of national and international issues affecting us that are now coming home to roost, and several of them are already here. All of them were pooh-poohed by the local Left, taking the cue from their national leadership. Here’s a short list.
Incipient financial ruin of America’s cities and states is acknowledged worldwide. Again our light thinking Left denied for years the role of public service unions and their pension planning with sleazebag politicians. Now we have witnessed a quiet pivot by progressives who are quietly trying to fix the unfixable without ever uttering things like SEIU. For a snoot full of how obvious the problem is to all but the national liberal chorus and, of course, the oblivians, read ‘The Unsteady States of America – Why the pensions nightmare is only just beginning’ in the 27jul13 Economist. Again, RR reported on this inevitability almost seven years ago when the SESF report presented to the local Board of Supervisors was risibly ignored.
The current poster child of municipal malfeasance and corruption is Detroit whose 700K citizens have been characterized by Michigan’s governor as innocent “good people” on whom this financial disaster has come like an unpreventable act of nature. Never mind that it is these same people who have continued to vote for the most corrupt collection of politicians decade after decade. Now they all are looking with expectant faces toward Washington for what could become the first of a national avalanche of bailouts and bondholder haircuts as at least 100 more cities are stewing in their own versions of such Chapter 9 fiscal fiascoes.
Obama is an authoritarian rogue president
in the best traditions of FDR and Lincoln (you can add Lyndon if you
wish) as was pointed out here five years ago, and regularly since then.
Now even some prominent national journalists are beginning to take
note with what facility and aplomb this president has advanced the
Executive über alles. The balance of power envisioned by an abandoned
Constitution is now history. Better late than never. (more here)
In a rogue administration populated by rogue agencies (e.g. DoJ, IRS, NSA, EPA, …), a leading handmaiden is the Dept of Homeland Security which to this day has yet to acknowledge the demonstrated and longstanding terrorist offensive carried out against the West by radical Islam. Today DHS still identifies tea party members and America’s veterans as the most credible and likely terrorist danger to the country. It has armed itself, FEMA, and local constabularies to deal with this onshore threat. In the meantime the Dept of State continues to shutter more embassies in Islamic countries, and is finally advising Americans of a worldwide travel threat posed by Al Qaeda. RR has been one of the few voices that agrees with Muslim leaders worldwide that we are in a one-sided war between civilizations.
And we can’t let this list end without reviewing the president’s “phony scandals” that were supposed be forgotten bygones by now according to our prescient progressive pundits, some even advising us so on these pages. It appears that exactly the opposite has been going on in each of the imbroglios – IRS (expanding here), Benghazi (multiple), NSA monitoring denials. And keep your eyes peeled for new ones from the implementation of the mandated sequestering of funds and exempting favorites from Obamacare coming to a front page near you.
Meanwhile our congressmen Tom McClintock and Doug Lamalfa are doing their jobs in trying to keep public lands open to the public. You’ve all heard what envirowacos are proposing to do toward shutting down Yosemite, and the roping off of more of our local Tahoe National Forest because of some hokey danger to a yellow-bellied, splay-footed, double-beaked something or other. Read Tom’s floor speech on Yosemite here. Also plan to attend Lamalfa's 4sep13 Congressional Hearing on the Proposed Critical Habitat Designation for these Agenda21 critters. It will be held at the Nevada County’s Rood Center on 4 September 2013 at 11am. McClintock will hold a forum on the same issue this Tuesday, 6 August, 2pm at the Mother Lode Fairgrounds, Sierra Building, 220 Southgate Drive, Sonora.
Finally, former Washington Post editor Henry Allen captures the country’s milieu in this short essay ‘The Disquiet of Ziggy Zeitgeist’. “I don’t know what’s going on. I doubt that anyone does. Is our democracy turning into a power vacuum? What will fill it? … Will organized religion die? I got talking to a girl from an Episcopal youth group in Missouri. ‘Episcopalianism is great,’ she said. ‘You don’t have to believe anything.’”
In a rogue administration populated by rogue agencies (e.g. DoJ, IRS, NSA, EPA, …), a leading handmaiden is the Dept of Homeland Security which to this day has yet to acknowledge the demonstrated and longstanding terrorist offensive carried out against the West by radical Islam. Today DHS still identifies tea party members and America’s veterans as the most credible and likely terrorist danger to the country. It has armed itself, FEMA, and local constabularies to deal with this onshore threat. In the meantime the Dept of State continues to shutter more embassies in Islamic countries, and is finally advising Americans of a worldwide travel threat posed by Al Qaeda. RR has been one of the few voices that agrees with Muslim leaders worldwide that we are in a one-sided war between civilizations.
And we can’t let this list end without reviewing the president’s “phony scandals” that were supposed be forgotten bygones by now according to our prescient progressive pundits, some even advising us so on these pages. It appears that exactly the opposite has been going on in each of the imbroglios – IRS (expanding here), Benghazi (multiple), NSA monitoring denials. And keep your eyes peeled for new ones from the implementation of the mandated sequestering of funds and exempting favorites from Obamacare coming to a front page near you.
Meanwhile our congressmen Tom McClintock and Doug Lamalfa are doing their jobs in trying to keep public lands open to the public. You’ve all heard what envirowacos are proposing to do toward shutting down Yosemite, and the roping off of more of our local Tahoe National Forest because of some hokey danger to a yellow-bellied, splay-footed, double-beaked something or other. Read Tom’s floor speech on Yosemite here. Also plan to attend Lamalfa's 4sep13 Congressional Hearing on the Proposed Critical Habitat Designation for these Agenda21 critters. It will be held at the Nevada County’s Rood Center on 4 September 2013 at 11am. McClintock will hold a forum on the same issue this Tuesday, 6 August, 2pm at the Mother Lode Fairgrounds, Sierra Building, 220 Southgate Drive, Sonora.
Finally, former Washington Post editor Henry Allen captures the country’s milieu in this short essay ‘The Disquiet of Ziggy Zeitgeist’. “I don’t know what’s going on. I doubt that anyone does. Is our democracy turning into a power vacuum? What will fill it? … Will organized religion die? I got talking to a girl from an Episcopal youth group in Missouri. ‘Episcopalianism is great,’ she said. ‘You don’t have to believe anything.’”
George,
To blame workers for the obvious results from a manufacturing exodus out of the US while those same corporations have never seen higher profits is ridiculous. Corporate tax breaks and pitting workers against each other is a major factor but you seem to think these ideas are good.
Here is a bigger piece of the pie.
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=10513
Posted by: Ben Emery | 02 August 2013 at 01:22 PM
BenE 122pm - I think you're missing the more important "manufacturing exodus" out of Michigan to other states which has been invisible to Detroit politicians and unions. And yes, I do think that "corporate tax breaks and pitting workers against each other is good", and apparently so do the other states that have attracted other domestic and foreign car makers. Just as no one will start a new high tech manufacturing plant in California, so will no one restart an auto plant in Detroit.
Posted by: George Rebane | 02 August 2013 at 01:34 PM
I was the hated enemy of Local 39 at the county the whole time I was a Supervisor. I was always trying to get the "negotiations" between us and them into the front room instead of closed sessions but alas I failed. Pensions were voted on and now we see the results. Detroit was a lost cause many years ago when the Big T
I hope Tom and Doug can slow down the Federal Steamroller on the people's lands. We pay for them and all the things and people on them and they use these A21 and ESA scams to keep us off of them. The grazing wars are back as are timber and mining. When one reads the ECO management plans for the forest people can only shudder in disbelief. When I stared CABPRO in 1993 the Feds were trying to do all the same things as they are now and it was quite a battle. I told the bicyclists, four wheelers, hikers, campers and the equestrians they should join us because they would be singled out someday. They said nope and took the exclusions in the management plans fore their sports. Now they are toast. While our local libs were complaining about Republicrats, many of us were in the fight to preserve our rights. But, like all libs the local yakkers from the left think we are all just numb-nuts on the right. While they were strumming their guitars, we were doing the heavy lifting.
Posted by: Todd Juvinall | 02 August 2013 at 01:57 PM
This material is too rich and up my alley. Yes, Greece just another few billion from the IMF.
Interesting that the day O gave his economic speech at that small college in Illinois a few days ago, just a few hours before the Prez's long winded monologue Moody's downgraded Mr. O's hometown of Chicago by 3 notches. Reason? Moody's says Chicago under reported its unfunded pension liabilities by half. Moody now says most cities have reported only 1/3 of their unfunded liabilities. Moody may have got caught with their pants down during the economic crisis, but they won't be fooled again.
Brother Ben, please listen for a second. Detroit is a mess because of decades of mismanagement of the city, including racial politics. Yep, some things were out of their control such as global economic trends. However, most people do not blame white flight to the suburbs. More people blame the inner city flight that has shrunk the city's population by nearly half. How the city leadership responded to these challenges is why 90% or more of the city's wages are being paid by federal grants.
Here is the deal: If you, Ben, read this, I will read 3 of your links, ok?
http://www.foxnews.com/opinion/2013/07/29/why-obama-doesnt-dare-speak-about-detroit/?intcmp=trending
And yes, I am well aware that we are sending more money to the South American nation of Colombia than to Detroit. Geez, the web is full of excuses and blamers and flamers concerning poor little Motor City.
Posted by: Bill Tozer | 02 August 2013 at 04:59 PM
Ben Part 2. I love the comments to the link you posted. Guess some people don't see eye to eye concerning Detroit. I know one thing. If I can have a car built in Michigan for 75 bucks an hour per employee (bennies included) and can have the same car built for 30 bucks an hour in the Sunshine South, where would I go to stay in business? and complete with Toyota and Nissan?
Thank you lucky stars that US made pickups are selling like hotcakes last month, driving year over year sales up 23-41% for the Big Three respectively. Toyota just cannot compete with US made Ford, Chevy and Ram Trucks. Americans love their pick ups are big trucks with big engines are what the non Washington types love! Plus Ford's eye pooping mileage little cars.
Posted by: Bill Tozer | 02 August 2013 at 05:07 PM
Mr. Tower
The link and opinion piece you suggested is no more than the typical smear piece on President Obama by Jon Kraushar. Jon is an adviser to Congressional leaders including Eric Cantor and Paul Ryan; Dick Cheney's debate coach and Roger Ailes former partner. Too much baggage and too much bs in that opinion piece. And yes the web is full of partisan excuses and blames and Fox News leads the pack. I know you can do better.
Posted by: Ken Jones | 02 August 2013 at 07:01 PM
Thanks for the link BillT. I see the usual apologists for Obama are at your throat. Of course we all on the right had to listen to his ilk's bias most of our lives and we get a neutral network, FOX and these lovelies go apologetic. Too funny.
Posted by: Todd Juvinall | 02 August 2013 at 08:33 PM
Ok. let look at Detroit's leaders. This has nothing to do with making cars:
http://www.reuters.com/article/2013/03/11/us-usa-crime-kilpatrick-idUSBRE92A0HV20130311
Detroit's pension fund pension fund
http://www.huffingtonpost.com/2013/06/20/detroit-pension-fund-investigation-kevyn-orr_n_3474087.html
Democrat controlled history (recent years)
http://www.washingtonpost.com/blogs/on-leadership/wp/2013/07/19/what-killed-detroit-lets-not-forget-the-who/
Mr. Jones. You can fill pages upon pages just by Goggling Detroit corruption. You will find judges to policemen. Too much info, so little space. Looks like Detroit does it Chicago Style! Or just has a tiny leadership problem.
In a semi-related bit of news, Carlos Danger finally has one politician stepping forward to support and defend former Representative A. Wiener (D,NY) on his bid for Mayor Bloomberg's job. Nope, its not Bill Clinton who gave the nuptials at Mr. Wiener's wedding. Not Bill. None other than the famous Democrat Mayor himself, the Honorable Marion Berry.
Posted by: Bill Tozer | 02 August 2013 at 10:10 PM
Mr. Jones: this one seems non political and is actually quite moving. Think Mr. Ben would conclude that its all about race.
http://www.washingtonpost.com/politics/detroits-demise-decades-in-the-making/2013/07/19/0b1d8dc6-f068-11e2-bed3-b9b6fe264871_story.html
Posted by: Bill Tozer | 02 August 2013 at 10:31 PM
Mr. Tozer a better link and source. Keith B. Richburg expressed a more honest view and hit upon the reality that is Detriot, decades of slow decay from many factors, internal in the city and in the state and the external with international trade. This isn't a one issue, I.e. "liberalism" as RR likes to imply and place blame. Multi issues with no easy solution. Yes those issues include race, corruption and politics. But as the root cause, hardly. Life and our world is never that simple.
Posted by: Ken Jones | 03 August 2013 at 06:24 AM
Phony scandal. If Benghazi is just another phony scandal, then why all the sudden silence from witnesses?
Let them testify before Congress or be interviewed by Congressional members or by the 4th branch of government to prove this is just another phony scandal and nothing to see here, move on. Just like Fast and Furious, Tea Party applications for non-profit advocacy status forwarded to the White House General Counsel's Office, NSA infor on citizens shared with the FEC....these are just distractions by the Vast Right Wing Conspiracy who can't get over the fact that a partial black man is sitting in the Oval Office.
You are only paranoid until proven correct.
http://thelead.blogs.cnn.com/2013/08/01/exclusive-dozens-of-cia-operatives-on-the-ground-during-benghazi-attack/?hpt=hp_c2
Posted by: Bill Tozer | 03 August 2013 at 07:45 AM
Re KenJ 624am – Mr Jones’ point is semi-correct. However the pursuit of it in public policy leads to slow progress at best and gridlock as the most likely solution. Detroit has demonstrated the latter.
Yes, any conclusion or terminating event (like municipal bankruptcy) has many contributive causes. In the study of causality these are envisioned, modeled, and analyzed in terms of a causal basin that looks like a multiply connected tree (graph). In the overwhelming number of cases this basin has a dominant sequence of events/processes called the causal beam that leads to the event. Severing the causal beam will with high likelihood prevent the terminating event, while severing other branches in the causal basin may just lower the event’s probability.
In commentaries like RR, the reader is usually treated only to the causal beam for the sake of brevity and clarity. And here we come back to Detroit and its national municipal brethren. It well acknowledged that the causal beams leading to bankruptcy all have the common attribute of public service pension mismanagement (a polite word for sleaze and corruption). And going back in the causal beam we run into collectivism as its launching provenance – more simply, wealth redistribution with no regard to market pricing. Socialist principles are the sine qua non of the intellectual rationale that unions present to managements before bribes and strikes enter the picture.
Another way to look at the multiple cause problem is from the principal factor perspective. All systems, patterns, processes, … are understood in terms of multiple factors that characterize them. These can be arranged in order of importance through various analytical means. The higher the ranking of a factor in such a spectrum, the more of the observables it explains away about the nature of the pattern or the system’s behavior. Again, socialistic principles introduced by liberal ideologues are the acknowledged principal factors pushing American cities into Chapter 9 bankruptcy.
Finally, if all the above is too obtuse, we can return to the point of my commentary and long argued conclusion – in cahoots with many other dependers, progressive governance is the liberally consumed secret sauce that has gunked up the gears of the nation’s cities.
Posted by: George Rebane | 03 August 2013 at 08:53 AM
Re: Detroit... only capitalism could rebuild Detroit. That is not even an option in the US of A.
Re: Pensions... taxpayers will get the shaft, again. Unethical compensation packages of 'public serpents' will continue to make headlines. Pensions are getting a free pass this year due to a Bernanke Bubble in stocks.
Re: Obama.... we so desperately need a leader.
Re: Greece.... a foreshadow of collectivisms end game.
Posted by: TheMIkeyMcD | 03 August 2013 at 04:03 PM
" socialistic principles introduced by liberal ideologues are the acknowledged principal factors pushing American cities into Chapter 9 bankruptcy." Acknowledged by whom?
Posted by: Joe Koyote | 03 August 2013 at 05:48 PM
What will LIBS have to say when the Benghazi cover up is exposed as the "big brother" to Fast and Furious? Remember the "manpad" recovery excuse?
No wonder "O" got nutless with the chemical weapon "red line". Just maybe
it was his pals ( which side? Who knows.... Muslim Brohood?) actually used them. Yaa,, He sure doesn't want news like this getting out.
It may be "O"'s own criminal actions that filled a grave right here in our own county.
Posted by: Walt | 03 August 2013 at 06:07 PM
JoeK 548pm - everyone who understands municipal cashflows.
Posted by: George Rebane | 03 August 2013 at 09:53 PM
Pretty vague answer.. Bandwagon argument, "everyone" believes this so I should as well?. Who are these "everyone"'s? What are their political affiliations? Is this just more right wing propaganda to discredit the opposition and get elected? The studies supporting the Laffer (spelling?) curve and austerity have pretty much been debunked (by everyone but the far right) based on unreliable models (as you claim for climate change). How are readers to know if that is not the case with this as well? Instead of a blanket blaming the "libs" what specifically didn't work? We already know about the claims relating to unions and pensions for government workers, what else pushed these cities over the edge? How did the souring of the economy (thanks to greedy banks and bailouts) effect these teetering cities? How did "downsizing" or " moving offshore" effect those municipal economies? How did unemployment and poverty put a drain on funds? Many posters in here seem to find a way to blame ideology rather than actual circumstances. To win an argument among discerning readers unbiased, objective information from widely recognized credible sources is needed. Blaming the opposition is preaching to the choir.
Posted by: Joe Koyote | 04 August 2013 at 11:25 AM
Mr. Koyote, glad to see you are still seeking out the exception to the rule. Like if everybody jumped of a cliff, you would find the one sheep that got pushed. You would find some poor soul who shot himself in the foot and say it wasn't the bullet who hurt him, nor his actions. It was something else.
Yes, there is always "the rest of the story".
Take heart, my brotha from another motha. Obama will not let those who pay no taxes be burdened by those taxpayers who are not paying their fair share.
Urban decay is not a new term. But, then again, LA was just a spot on the map 85 years ago. Now the area is home to 30 million people (most of them citizens).
A friendly word of caution. Be wary of loading up on municipal bonds. Might take a haircut in the future. Speaking generally, of course. I am certain you will find a good safe investment in the muni market out there.
Posted by: Bill Tozer | 04 August 2013 at 12:41 PM
I don't trust paper in any form. Most of my meager funds are in real estate and metal.
Posted by: Joe Koyote | 04 August 2013 at 12:55 PM
Yep, Mr. Koyote, I too have meager funds. I gone from picking stocks to picking mutual funds to now index funds. Even refined it to betting on America. They say buy and hold is over and I have come full circle. Now I buy and hold and forget it. Maybe when I retire and have a year or so to live, I might try to time the market. Until then, I know everything comes around, and like the 4 seasons, we have spring, summer, fall (oh no, its falling) winter (at the bottom, depressed) and then Spring again. Figure if I just keep on keeping on little by little, then I will have more of the stuff, whether its at its highs or lows. Betting on America is the cleanest shirt in the dirty laundry bin, IMHO. And in my totally uninformed opinion, lol.
On a very personal note and totally off topic (unless retirement and the status of the economy is semi on topic) the only reason I got this humble abode out in the boonies with 10 acres is the housing market crash. Previous owners bought the land, moved a manufactured on site, built a huge redwood deck with gorgeous views, sunk a well and engineered septic system a few years ago. Cost them 330 grand and then the job market and economy and housing bubble burst. Picked it up on a short sale for a bit over a third the cost. Moved in Dec 15th. Could not afford it buy it today. Timing is everything. I am a dummie, so I just happened to show up at the right place at the right time. Nothing to do with smarts. They say showing up is 90% of the work. Sorry all readers for my digression again. Strike that. Ain't sorry. Psychopaths do not feel sorrow. Either do half the folks who reside in my head. The other half are softies. Time to give myself a group hug. Take care, Mr. Koyote
Posted by: Bill Tozer | 04 August 2013 at 03:18 PM
JoeK 1125am - I can't do much more than recommend you widen your news and commentary media sources. And pay attention to the pics in RR. Did you see that The Economist did a major report on the topic and conclusions of this post. They are not exactly your American right wing rag. Some of you folks will not believe anything until Bill Moyers, Chris Matthews, or Rachel Maddow blesses it. When the America's public service union pension disgrace is reported regularly in the national and international press, it should be time for even liberals to take notice. But I am glad that you visit RR now and then ;-)
Posted by: George Rebane | 04 August 2013 at 03:23 PM
Ho hum. Yawn. Just another of the usual news today:
http://finance.yahoo.com/news/pandemic-pension-woes-plagues-nation-100000527.html
Found the last sentence rather odd. As set up, my civil servants should receive a low wage in exchange for retirement pension and benefits. But, noooooooooooo. Now they want to be be on equal pay with the private sector AND receive pension with bennies. Greedy little things them public employees are. Like jawhawks crowding the bird feeder. What every happened to the image of the low paid civil service worker who got the last laugh with a secure retirement? Cut their pay and fund their pensions. Maybe drop surviving spouse bennies and retiree's spousal bennies. That would make them just like the private sector.
Posted by: Bill Tozer | 05 August 2013 at 05:56 PM