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Costa Mesa to Lay Off 43% of City Workforce, Outsource Services; Nearly Half-Way There; The Ideal Number of Public Employees is Zero

2011-03-03T17:11:00.000-08:00

The City of Costa Mesa, with a population over 100,000, is about to become 43% closer to the idealized goal of no city workers.

In a massive step in the right direction, Costa Mesa to lay off nearly half of city workforce, outsource services.

The city of Costa Mesa plans to lay off more than 200 employees and outsource 18 city services by the fall.

The layoffs would cut the city's municipal workforce by 43%. The City Council approved the layoffs in a 4-1 vote late Tuesday night, despite nearly unanimous opposition from the audience.

City officials said pink slips will go out in the next six months. The mayor blamed years of missteps by city staff and rising pension costs.

Almost half of city work force gets pink slips

The Daily Pilot has more details in Almost half of city work force gets pink slips

About 203 city employees will be receiving the six-month notice in the City Council effort to correct the budget.

City officials have crunched the numbers and determined that more than 200 Costa Mesa employees � or 43% of Costa Mesa's municipal workforce � could be laid off through outsourcing.

Of the 472 full-time positions, 203 city employees, give or take one or two, will get pink slips notifying them that they could be laid off in six months, said Administrative Services Director Steve Mandoki.

Tuesday's move is part of a dramatic restructuring of a city that faces potentially skyrocketing pension costs in the coming years.

Costa Mesa's own projections show that in the next few years, it will be expected to pay more into the state's public pension fund, CalPERS. It's a situation being replayed up and down the state: When the CalPERS pension fund was flush in the early 2000s, Costa Mesa did not have to pay much to the state to cover its employees' retirement costs. Now that CalPERS investments are hurting, cities have to cover the difference.

That pattern looks to continue for at least the next five years, city officials project.

Laying off hundreds of employees and their accumulating pensions by the fall would help to balance the city's budget in years to come, council members reason.

"We're going to run out of money sometime this year if nothing changes," said Councilman Eric Bever.

Costa Mesa Half-Way There

The best way to deal with public employees and their overly generous pension contracts is to not have public employees at all.

I commend Costa Mesa for a huge but incomplete step in the right direction.

Other than a small number of elected officials and a few administrative assistants, the correct number of public employees is zero.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Sucker Punch Concept Art Book

2011-03-03T14:30:00.000-08:00

Sucker Punch Concept Art book is here! I just put in an order on Amazon.

This movie is probably one of my top ten must-watch this year. Zack Synder is one of the best visual story teller directors in our time. I love 300 the movie, one of my most favorite film. I have a feeling that Sucker Punch will be along the same line visually, except more girls. If you never seen the trailer, watch below.

Here is a book cover:

Here is one of the review, video included from Amazon Sucker Punch book's review
"This art book is way thicker than I expected. It's 256 pages in a wide format hardcover. Nice. Zack Synder's previous films (300, Watchmen, Legend of the Guardian) have a thing for CGI and this latest one is not exception. This art book (and film) is like a pop culture hurricane. There girls with guns and blades, robots, orcs, castles, machine gun welding giant samurais, dragons, zombies, orcs, castles, theater and brothel. All these are from the vivid imagination of the lead, Babydoll."

The visuals in the book is a mixture of photos and art. I like how they exaggerated anime-like drawings, conceived in such a way as to reveal the primary personality and characteristics of each of the all-female team of protagonists. Each of the main female characters get several pages devoted to images of them taken from the movie. Substantial treatment is also allocated to the physical environments and to minor characters such as the World War I soldiers who figure in the film. But honestly guys the book and the film has everything we ever dream of whether it will be good or bad. Even if the movie turns out bad, it will still be greatest of the bad bunches. Come on, hot girls in Japanese school girl outfit (I don't know how it is relevant but I guess it's the creator's vision?), giant robots, Nazis, Zombies, Samurai, Medieval knights and Dragon are all in the movie? How many time we will ever get to see that. Probably not ever, until now.

This has to be one of my most favorite Mech robot in the world. A PINK bunny? really?

Tons of cool concept and eye candy images. From what I have see, it looks sweet. I hope I will get my book sometimes early next week. Peace!

And of course, I love movie's soundtracks and cannot wait for MP3 Sucker Punch's soundtrack.

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Goldman's Blood-Sucking Leeches Model, Money Multipliers, Macroeconomic Dark Ages, the Taylor Rule, and Nonsense from Trichet

2011-03-03T12:40:00.000-08:00

Caroline Baum has an excellent column on Bloomberg today regarding money multipliers and a Goldman Sachs projection of what Republican budget cuts may do to the economy.

There were so many things in her post I wanted to reference that I asked Caroline if I could use her entire post. She graciously replied "Let 'er rip".

Goldman's Model Evokes Blood-Sucking Leeches: Caroline Baum

Macroeconomics really is stuck in the Dark Ages.

Take �fiscal stimulus,� for example, the idea that the government can step in to fill the void when the private sector isn�t spending and boost economic growth in the process.

Economists have been debating the pros and cons of fiscal stimulus since the 1930s, when John Maynard Keynes diagnosed the problem as one of inadequate private investment and prescribed public spending, financed by borrowing, as the cure.

The discussion hasn�t advanced very much in eight decades. Sure, economists have devised elegant mathematical models that purport to show that $1 of government purchases translates into -- take your pick -- no increase in gross domestic product (the multiplier is zero, according to Harvard�s Robert Barro) or $1.50 of GDP (a multiplier of 1.5, according to Berkeley�s Christina Romer, who was chairman of President Obama�s Council of Economic Advisers when the $814 billion stimulus was crafted in 2009). They haven�t really proven anything.

Keynesian economics went into hibernation in the latter part of the 20th century following an array of stimulus failures on the part of both Democratic and Republican administrations in the 1970s. The only thing the spending stimulated was stagflation.

In the 1980s, inflation came down, the Berlin Wall came down, economists thought the volatility of the business cycle had come down, and the notion of government as the solution went out of vogue.
Keynesians All

All it took was a good financial crisis for the Keynesians to come out of the woodwork.

The debate over fiscal stimulus went viral last week (at least in the geek world) with an economic forecast from Goldman Sachs Group Inc. (GS), a counter from Stanford University economist John Taylor (he of the Taylor rule), and an addenda from Goldman yesterday.

The Goldman gang projected an economic drag (that would be the opposite of stimulus) on GDP growth of 1.5 to 2 percentage points in the second and third quarters if House-passed budget cuts of $61 billion for the remainder of fiscal 2011 become the law of the land.

Asked about the Goldman forecast Tuesday following testimony to the Senate Banking Committee, Federal Reserve Chairman Ben Bernanke demurred.

�Our analysis doesn�t get a number quite like that,� he said. �Two percent is an enormous effect.�

He could have added: �especially when the rest of government is growing.�
Wrong on Everything

�Total government spending is up 6.7 percent in 2011 from 2010,� Taylor told me in a telephone interview.

Defense spending is rising, as are non-discretionary outlays for programs such as Medicare and Social Security that are on automatic pilot.

The proposed cuts would reduce non-defense non-security discretionary spending, a teensy share of the federal budget, back to 2008 levels.

In a Feb. 28 blog post, Taylor said Goldman�s analysis was �wrong.� He criticized it for failing to consider the beneficial effects that expectations of lower future deficits and smaller tax increases would have on the economy. He criticized the methodology for relying on the same �large multiplier theory� used to justify the 2009 stimulus. And he criticized the assumption that proposed spending equates with actual spending, which trickles out over time.

Aside from that, Mrs. Lincoln, the Goldman analysis was spot on.

�Alchemists and Quacks�

This fundamental disagreement among professional economists about whether government spending helps or hurts represents the state of the art, or science, today. In what other science do practitioners design a treatment plan based on inconclusive proof that the medicine does any good?

There are no control studies in economics, no way to hold everything else constant to determine the impact of one variable, no way to falsify conclusions that models spit out. Financial Times columnist John Kay, writing yesterday about risk modelers, referred to them as �alchemists and quacks.�

A bit harsh, perhaps, but he�d probably hold macroeconomic models in the same high regard.

Whenever oil prices spike, modelers instantly project how much the increase will subtract from GDP growth. No mention of why prices are rising. Is it the result of a supply shock, which results in higher prices and reduced quantity demanded, or an outward shift in the demand curve, which equates with higher price and quantity demanded? There is a difference.

Known Knowns

In microeconomics, which is the study of how individuals and firms interact in specific markets, certain truths are self-evident. Which doesn�t mean economic planners can see them. Governments across Asia right now are using subsidies and price controls to ease the pain of higher oil and food prices even though their actions will exacerbate the crisis.

Goldman countered Taylor�s critique with a clarification. The projected 1.5 to 2 percentage point hit to GDP was to the quarterly annualized growth rate, not to the level. Thanks for that.

As I said before, we entered the 21st century with macroeconomics still looking for an Age of Enlightenment.

Five thousand years ago in ancient Egypt, medics used leeches to suck the blood of ill patients, believing the practice could cure everything from fevers to food poisoning.

Today�s physicians have largely forsaken bloodsuckers for modern medicine. It�s about time macroeconomics emerged from the Dark Ages as well.

Caroline Baum, author of �Just What I Said,� is a Bloomberg News columnist. The opinions expressed are her own.)

Dark Ages Indeed

I am wondering "How many times does an economic model have to be discredited before it is discarded?"

This idea that government spending can stimulate the economy is total nonsense. If it worked, we would see something more than 2.8% economic growth for a deficit of $1.4 trillion dollars.

The Fed purchasing Trillions of Fannie Mae and Freddie Mac bonds did nothing for housing, nor did several rounds of housing tax credits.

Government spending accounts for an ever-increasing share of GDP. Moreover, the only reason GDP is up at all is that by definition, government spending adds to GDP. The multiplier is actually negative. It takes an increasing amount of "stimulus" spending just to say in the same spot.

Taylor Model Nonsense

Taylor criticizes the Goldman multiplier model and rightfully so.

However, his own economic model is fatally flawed. He believes all the Fed needs to do is go on autopilot, hiking or lowering interest rates in accordance with the Taylor Rule.

In economics, a Taylor rule is a monetary-policy rule that stipulates how much the central bank would or should change the nominal interest rate in response to divergences of actual inflation rates from target inflation rates and of actual Gross Domestic Product (GDP) from potential GDP. It was first proposed by the U.S. economist John B. Taylor in 1993. The rule can be written as follows:
In this equation, is the target short-term nominal interest rate (e.g. the federal funds rate in the US), is the rate of inflation as measured by the GDP deflator, is the desired rate of inflation, is the assumed equilibrium real interest rate, is the logarithm of real GDP, and is the logarithm of potential output, as determined by a linear trend.

Unmeasurable Economic Gibberish

The idea that interest rates can be set by mathematical modeling when the variables themselves are subject to debate as to how to measure them is preposterous.

Take the CPI for example. I believe home prices should be in the CPI. They used to be.

Somewhere along the line some theorist decided "owners' equivalent rent" (OER) was a more valid concept. What is OER? It is the amount one would pay himself if renting a house from himself. It is the single largest component of the CPI. The measure of inflation from 2002 to now would be wildly different if one used actual home prices instead of OER.

Which model is more accurate? Look at the Fed's chasing-its-tail actions hiking in baby steps on the way up, then lowering interest rates to zero when the economy collapsed.

ECB President Jean-Claude Trichet, a Keynesian Clown Too

Just today, Jean-Claude Trichet is talking about hiking rates in Europe.

His concern is pass-through inflation as noted in the Bloomberg article Trichet Says ECB May Raise Rates, Show `Strong Vigilance'

�There is a strong need to avoid second-round effects,� Trichet said, calling for moderation from wage and price setters. The ECB is �prepared to act in a firm and timely manner.�

This whole idea of pass-through inflation and second-round effects is yet more Keynesian claptrap. If someone pays more for gasoline, they have less to spend on clothes. It is as simple as that, but not to those purposely hiding behind economic models and their multiplier effects.

Alchemists and Quacks Galore

Making decisions on flawed models is bad enough in closed economic society.

Errors in every model are exacerbated by the fact we have a global economy subject to economic pressures of all kinds from countless places.

Financial Times columnist John Kay, writing yesterday about risk modelers, referred to them as �alchemists and quacks.� There are no control studies in economics, no way to hold everything else constant to determine the impact of one variable, no way to falsify conclusions that models spit out.

On that basis, the analyst from Goldman Sachs, Taylor, Bernanke, Krugman, Greenspan (and countless others) are all quacks.

Why Model at All?

There are no control studies because it is impossible to do them.

The real world is constantly changing, while mathematical models, Goldman's and Taylor's alike sit there as unmeasurable economic gibberish, when every component is subject to measurement errors and debate about what needs to be measured in the first place.

End the Fed

The free market could not possibly have done a worse job in setting interest rates than the perpetual chasing-their-own-tail central bank tactics that continually create boom-bust bubbles of ever-increasing amplitude in both directions.

If central bankers knew where interest rates should be we would not be in this mess, or at least the mess would be smaller. For further discussion about what the Fed does and does not know, I strongly encourage you to read the Fed Uncertainty Principle.

Ironically, the one thing the Fed never mentions and the ECB seldom mentions is money supply.

Here's the deal: Inflation is a direct result of the cheapening of money. Strike that, inflation IS the cheapening of money and central bank policy in conjunction with fractional reserve lending is the cause.

Central bankers do not talk about such things because they are at the root of the problem.

The solution of course is to not only get rid of the Taylor rule, but to get rid of the Fed, the ECB, and central bankers around the globe.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Paul Krugman, Stephen Colbert, Bill Maher, others, Ignore Extortion, Bribery, Coercion, and Slavery; No One Should Own You!

2011-03-03T03:09:00.000-08:00

A large number of people have recently come out in support of extortion, bribery, coercion, and even slavery. They don't realize it, but I can make a rock-solid case.

Here is a partial list of prominent names willing to support or ignore slavery for political reasons.

Paul Krugman, a Nobel prize winning economist and writer for the New York Times
Bill Maher, an extremely popular stand-up comedian and host of HBO Real Time with Bill Maher
Stephen Colbert host of Comedy Central's The Colbert Report
Harold Meyerson, a columnist for the Washington Post.
Yves Smith author of the site Naked Capitalism and one of the most popular economic bloggers country
Rick Ungar, a writer for Forbes magazine.

Of course, no one on the above list has actually stood and said "I support slavery", yet they all do. I will build the case piece by piece, ending with a charge of slavery from two different angles, from the point of view of the employer and the employee.

Coercion, Bribery, Threats

In Workers toppled a dictator in Egypt, but might be silenced in Wisconsin Harold Meyerson at the Washington Post compares the Wisconsin union protesters to Egyptian freedom fighters.

I think it is more like Grecian protests and coercion. Here are a couple of YouTube videos to consider, showing typical public union thug tactics.

Give up the Bucks

Link if the above video does not play: Give Up the Bucks

SEIU Spokesperson Threatening California Lawmakers with Union Retaliation

Link if the above video does not play: SEIU Retaliation

Meyerson supports collective bargaining as a "right". I suggest something different.

Collective Bargaining is Extortion

Collective bargaining is not what its name indicates. In fact, it means exactly the opposite of what you'd guess. Collective bargaining refers to the obligation of an employer to recognize the elected representatives of a group of workers and his further obligation to negotiate with those representatives. This last part is what makes 'collective bargaining' extortion.

Under collective bargaining laws, employers have to recognize an elected union and have to negotiate with them.

Over time, the repetitive process of extortion, coercion, and bribery (shown in the above videos), results in politicians taking bribes (votes or cash) in return for legislation unions want. No one speaks for the taxpayer any step of the way.

Businesses do not have a choice other than to move their business to another state. Then when they do, the workers cry foul. Those businesses unable or unwilling to move are slaves to the system.

The right to terminate the employer-employee relationship is a fundamental right of both employer and employee. Employment should be mutually beneficial to employer and employee and open to termination by either when it becomes non-beneficial (limited of course by any voluntary contractual agreements).

Collective Extortion

Meyerson's comparison to Egypt is 180 degrees reversed. Those Madison protesters were not fighting for democracy but rather to preserve a system of collective extortion.

Unions threaten, bully and bribe their way into power and want more every step of the way.

Convenient Nonsense

Yves Smith at Naked Capitalism takes a different tack in Wisconsin Union Battle: A Convenient Distraction From the Real Culprit in State Budget Woes.

She approaches the situation from the angle that public union workers are not overpaid, citing self-serving studies by union sympathizers at the Economic Policy Institute.

Her most preposterous claim is "The one group in which public sector workers are modestly more highly paid is non-high-school graduates, which one assumes include sanitation workers and janitors. Even then, the premium is not large."

For starters, no one in the private sector gets benefits like those in the public sector. Those who did (GM, Ford, Airlines) all went bankrupt.

Job by Job Comparison

Union apologists frequently claim that stats that show union workers make no more than their exact non-union counterparts. In some cases that may be true, but when so, it's primarily because of prevailing wage laws.

If states have to pay a "prevailing wage" and that "prevailing wage" is a union wage, then by definition non-union wages will be as high, by mandate. Is that a valid comparison?

Prevailing wage laws not only rip off taxpayers, they also discriminate against businesses who can do the job better, for less money.

Education Red Herring

The most frequently used reason for the preposterous claim that public workers are underpaid is an assertion that public workers are better educated.

Please consider prison guards, transit workers, police, janitorial services, etc., most with nothing more than a high school education plus a little training. Many of those groups have 6 figure pensions.

Nonetheless, let's pretend for a moment public sector workers are better educated. Certainly teachers are likely to be better educated than the average person in general. I will grant you that, and there certainly are a lot of teachers.

However, what would those degrees be worth in the private sector? What is an English degree worth? Art? Poetry? PE?

Let's now consider highly educated persons working for the BLS on unemployment statistics. What are those employees really worth given a Gallup survey produces comparable results for free?

Do we need the Department of Education? The Department of Energy? The BLS?

Look at all the highly educated people in the department of education. Then look at US test scores. Then look at the failure of "No Child Left Behind".

Should the Department of Education exist at all? The Department of energy? HUD?

Why?

I would fire every one of them tomorrow, regardless of their education.

All of the people in those bureaucracies may very well be highly educated, but how many of them do anything useful that the private sector would not do better, faster, and cheaper?

To be fair, I am quite sure that there are a small percentage of workers who would make far more in the private sector. However, many of them, if not most of them would struggle to find a job at all.

We should cast them all free. Then we can see what they are worth. Instead we tax everyone to death via a combination of income taxes, sales taxes, and property taxes on the assumption public workers are worth more.

Public Unions Have Bankrupted Cities and States

State pension plans are $3 trillion in the hole, and that does not count city and county plans that are likely another $3-5 trillion in the hole. Public unions have bankrupted hundreds of major cities. The day-of-reckoning is upon us.

Gina Raimondo, a Rhodes Scholar and treasurer of Rhode Island is one of few politicians willing to admit the true score. While most politicians cite underfunded liabilities of $1 trillion, the true score is $3 trillion on an actuarially sound methodology. And that is just for state pensions. It does not include cities.

PBS News Hour Interview

Please consider a recent PBS News Hour interview In Tiny Rhode Island, a Massive Public Pension Crisis Looms

GINA RAIMONDO: Today, Rhode Island has a $5 billion unfunded liability, which is the highest unfunded liability per capita of any state in the country.

In 1998, our budget was paying $145 million into the pension. This year, we will be $335 million. And five years from now, it will double again.

PAUL SOLMAN: In Rhode Island, as elsewhere, the root cause is plain and simple: Governments gave workers benefits instead of raises, salting away a pittance to pay for them.

GINA RAIMONDO: So, I could promise you today, in 25 years, when you retire, you will have a very rich benefit. And by the time you come to collect, I'm long gone. I'm no longer in office.

PAUL SOLMAN: But without dramatic changes to the pension system, Rhode Islanders face dramatically higher taxes and/or austerity.

GINA RAIMONDO: This problem of the pension, Rhode Island faces it; every state in the country faces it.

The unfunded pension liability nationwide is a $3 trillion problem. TARP, we were prepared as a country to put aside $700 billion. The bailout of Fannie and Freddie was $400 billion. They all pale in comparison to the enormity of this financial challenge.

And marginal change won't fix it. Tinkering won't fix it. Pretending we don't have a problem won't fix it. Looking in the eye of this enormous financial problem honestly and recommending fundamental changes to a system, I believe, is the solution.

How Badly is Your State Underfunded?

For a state by state look at the pension problem, please consider Interactive Map of Public Pension Plans; How Badly Underfunded are the Plans in Your State?

Promises Cannot, Will Not Be Met

Union members say it would be unfair to renege on promises. Actually it wouldn't. The reason is the contracts are fraudulent. Benefits were "guaranteed" via a process of extortion, threats, bribery, and coercion.

There is no legitimate need to honor fraudulent contracts. Secondly, it is less fair for those just out of college with low paying jobs and no chance of huge benefits to bear the brunt of the burden.

Nor is it remotely fair to tax high income wage earners for this purpose. If there is a tax on high wage earners, it should go towards reducing the deficit, not to a collective group of extortionists.

Proposed Pension Underfunding Solution

My solution would be to tax public union benefits above a certain amount at an extremely high penalty rate of say 90%. Those taxes could be fed back into the pension system to guarantee wages and benefits for those under the threshold.

The vast majority of union member should support my plan because it would guarantee their benefits. Should it come down to a bankruptcy or default situation instead, a bankruptcy court may not be as beneficial to those on the bottom of the totem-pole as my proposal.

Colbert Report and HBO Real Time with Bill Maher

Both Stephen Colbert and Bill Maher have had numerous segments lately in support of public unions. I think Colbert is one of the funniest guys on the planet. It is one of the few shows I enjoy watching.

However, the following union-suck-up was out of character as to how challenging he normally is on guests.

In the above clip, Randi Weingarten, the president of the American Federation of Teachers, talks about "people's rights" and Colbert not only goes along with it, but feeds her powder-puff pitches all along the way.

The fact of the matter is there are indeed rights, such as the right to not belong to a union and still have a job, the right to not have union dues go to things you do not support, and the right to start a business and hire who you want as long as you do not discriminate by race, religion, etc.

In one recent episode of Real Time, Maher said he does not understand the negative sentiment towards public unions.

Perhaps Maher would "get it" if HBO bumped his show off the air with a statement "I am sorry Bill. You have a popular show, but we need to cut programming. Based on union seniority rules your show is next to go".

Lies Exposed

Rick Unger writing for Forbes talks about The Wisconsin Lie Exposed � Taxpayers Actually Contribute Nothing To Public Employee Pensions

Unger makes the preposterous claim that public unions pay their own way via deferred compensation.

Unger is another one who simply does not understand exponential math and what it means when pension benefits need to accrue at 8% a year to stay solvent. Nor does he seem to understand how deep in the hole these pensions are, and that unions getting in bed with politicians is the problem.

Enormous numbers of public union workers can retire at age 55, collecting more years in benefits than they ever worked, especially if they are in the public safety sectors. They make more in retirement than they do working.

Unger has no idea how much one would have to contribute to collect the benefits actually promised. However, that point is actually moot because ....

Public Union Members Contribute Nothing

Regardless of what public union workers or their supporters claim to contribute, they actually do not contribute a dime. Their salaries are taxpayer funded. Taxpayers pay those benefits.

Think of it as a highway robber holding you up at gunpoint, demanding your wallet, and then claiming he funded his retirement with it.

Once again, to be fair, most public workers do some work. However, pay scales are totally distorted by extortion, bribery, and coercion compounded over the years.

And, as I have pointed out, many of those jobs should not exist at all. In those cases it is exactly like highway robbery.

Executive Pay Distributed

One seriously misguided economic blogger went through a hypothetical example that took $150 billion in bonus money of executives to $500 to every man woman and child in the country. Supposedly that would fix things.

Here are a couple simple questions:

Exactly how would giving everyone in the country $500 fix a $6 trillion (or whatever) pension hole?
Exactly how would it fix the problem of union extortion, bribery, coercion?

Preposterous Math

Numerous union apologists cite preposterous math that says TARP recipients got $12 trillion. They fail to point out those were loans not gifts. To be sure, taxpayers are on the hook for AIG, Fannie and Freddie, GM and numerous other things but it is absurd to present this as if was a gift of $12 trillion.

Even if it was, how would it excuse bribery, coercion, and fear-mongering by public unions? Since when do two wrongs make a right?

Even FDR Understood the Problem

Public unions get into bed with management and politicians and work out sweet deals for themselves at taxpayer expense. No one looks out for the taxpayer. Even FDR understood the problem.

Message from FDR

Inquiring minds are reading snips from a Letter from FDR Regarding Collective Bargaining of Public Unions written August 16, 1937.

All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management.

The very nature and purposes of Government make it impossible for administrative officials to represent fully or to bind the employer in mutual discussions with Government employee organizations.

Particularly, I want to emphasize my conviction that militant tactics have no place in the functions of any organization of Government employees.

A strike of public employees manifests nothing less than an intent on their part to prevent or obstruct the operations of Government until their demands are satisfied. Such action, looking toward the paralysis of Government by those who have sworn to support it, is unthinkable and intolerable.

Political Power Play

Paul Krugman attacked the issue from a political point of view in Wisconsin Power Play and a second time in Shock Doctrine, U.S.A.

To Krugman, this is all about Republicans trying to stick it to Democrats.

The ultimate irony in Krugman's rant is that he is willing to overlook extortion, bribery, coercion and slavery as long as it suits his purpose.

Such is the "Conscience of a Liberal".

Bear in mind, he did raise a second issue, as have other bloggers, about language in the bill that would allow Wisconsin to "sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state."

Krugman is entirely correct on that provision. There is absolutely no excuse for un-bid contracts of that scope. That "un-bid" provision should be stricken from the proposed law.

Union Intimidation Tactics Harm Public Safety

Last week I received an email from the wife of volunteer firefighter Chris Olbu. Chris is a firefighter in the state of Washington. If ever there was a set of true public servants, it is volunteer fire department workers.

I salute public hero Chris Olbu, and all those in his shoes.

Olbu also works for Boeing, as a firefighter. He does not want to be in the union, but he has to be in the union to work for Boeing in his current position. Moreover, as a result of being in the union, he can no longer be in the volunteer fire department for his city.

You can read about Olbu in Island residents worried union intimidation tactics may harm public safety.

Chris Olbu's Story

To get employment Chris has to be in a union he does not want to be in.
Chris has to pay union dues for causes he does not support.
The International Association of Fire Fighters (IAFF) union (not Boeing), forced Chris to resign from the volunteer fire department.
His resignation harms public safety

Chris is a Slave

Notice the cascade of events. Chris has no choice as to whether or not to belong to a union. To get a job at Boeing as a firefighter he has to belong to a union. This came about in the usual way of course, which is to say extortion, bribery, and coercion.

As a result of that involuntary servitude, the International Association of Fire Fighters (IAFF) is now telling Chris what he can or cannot do with his free time.

I am looking for free legal assistance from lawyers in the state of Washington willing to pursue this case for Chris, all the way to the Supreme Court of the United States if necessary. I am also looking for similar volunteers in other states for those in a situation like Chris.

Corporations are Slaves Too

Boeing would gladly hire Chris as a non-union employee, but it can't. Instead Boeing is pondering moving various operations to states that do not support slavery.

There is one other point as well. Promotion in unions is not based on seniority but rather longevity. No matter how much better Chris may be at his job, he will always play second fiddle to anyone with higher seniority.

Both corporations and talented employees suffer at the hands of slavery.

President Obama is the Slave Master

Please consider the following quote heard recently at a tea party in Denver.

... They are trying to distract you to make you think that what they are all about is the right thing. In reality you�re just a pawn to them, a pawn that the Democratic Party and Barack Obama are using to keep them in power. This is a form of slavery. Liberals are enslaving themselves. Barack Obama is their slave master and they are doing his bidding for him. They don�t see it that way but that�s how it is.

Was it a white racist who said that?

No it wasn't. It is the man waving the Gadsden flag in the following image.

That is Leland Robinson, 51, a Denver native. He was hounded and harassed in Denver by an aggressive woman in a purple SEIU shirt who told him ...

"You�re an entrepreneur, so you don�t work. You don�t know what work is until you get into an educational area. � You�re uneducated, unethical, immoral, and you don�t know what life is. That�s your problem. Why don�t you go behind that fence where you belong? Why don�t you go back with your own kind?�

Another woman in red made further racial comments "I asked you a question: Do you have any children? That you claim, that you claim."

A bystander asked "What did you mean when you said does he have any children that he claims?"

To which the lady in red replied: "Because he�s such a free spirit and an entrepreneur, I would assume that he�s not supporting children."

Racism and Incivility

The above are clips from Racism and Incivility Aimed at Tea Party in Denver. Inquiring minds will want to give it a closer look.

Slave States

The above map courtesy of Talking Points Memo.

Willingness to Overlook Slavery

Paul Krugman, Bill Maher, Stephen Colbert, Yves Smith, Harold Meyerson, Rick Ungar, and countless others are all willing to overlook slavery because it suits their political and socialist agenda.

The blatant hypocrisy of it all is they accuse others of playing politics.

Challenge to Stephen Colbert

I would like to see Leland Robinson or Chris Olbu on the Colbert Report to discuss these issues, and I would gladly take on Bill Maher myself.

Numerous Problems

To be sure there are numerous other problems. The budget deficit is $1.4 trillion. We waste far too much money on warmongering. I would slash military spending an enormous percentage if I could decide.

We certainly have a situation of income inequality. The root of that problem is perpetual Fed bubble blowing with bank bailouts after every crisis. Too big to fail needs to stop, and it needs to stop now.

The irony of executive pay and banker bailouts is they are a result of Fed policies, not a result of lack of regulation. The solution is to end the Fed.

Unfortunately, people want to tie numerous problems together. I have received many misguided responses from people saying they would support reining in the unions if we would put bankers in jail.

However, attempts to turn this into a collective finger-pointing exercise or stacks of red herring issues cannot and will not fly. The key point is regardless of what one thinks of Walker's motivation, the fact remains he is on the right side of the issue.

Please play the following video to the end. It's depicts an extremely important concept about liberty.

Philosophy of Liberty

Link if the above video does not play: Philosophy of Liberty

Inquiring minds are reading The Adventures of Jonathan Gullible: A Free Market Odyssey

The Philosophy of Liberty is a flash animation created by Kerry Pearson based on the prologue of Ken Schoolland's book, "The Adventures of Jonathan Gullible: A Free Market Odyssey".

It's a basic summary and introduction to the theory of individual rights.

"It certainly presents basic economic principles in a very simple and intelligible form. It is an imaginative and very useful piece of work."

--Milton Friedman, Nobel Laureate in Economics

Slavery is the Issue

The motivation of Governor Walker or any other governor, is not the issue here. Slavery is the issue, and forced union membership and forced collective bargaining are nothing more than slavery imposed via campaigns of extortion, bribery, and threats, for the benefit of the slave masters.

Somehow things are so twisted that slavery is now seen as a "right" even though collective bargaining and forced union membership robs businesses of their rights to hire, robs workers of their right to seek employment, and robs workers of their right to do what they want with their free time.

There is no excuse for slavery no matter how hard union apologists try, or how many red herrings they throw. To end this form of slavery, we need a set of national right-to-work laws, an end to collective bargaining by public unions, and an end to Davis-Bacon and all prevailing wage laws.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Amazon May Cut Ties to California Over Tax Issues; Texas Distribution Site Closed Over Similar Issues Last Month; Litigation Issues Move to Forefront

2011-03-02T20:25:00.000-08:00

Cash strapped states are furious with Amazon.Com over sales tax collections. Several states passed laws or have sent Amazon bills. Amazon's response in every case so far is to leave the state.

Amazon to close Texas distribution center amid sales tax fight

The Statesman reports Amazon to close Texas distribution center amid sales tax fight

Online retail giant Amazon.com will close its suburban Dallas distribution center amid a dispute with the state over millions in uncollected state sales taxes, The Associated Press reported Thursday.

The AP obtained an e-mail Thursday sent to Amazon employees by Dave Clark, the company's vice president of operations.

Clark wrote that the center in Irving will close April 12 because of the state's "unfavorable regulatory climate."

Last year the Texas comptroller's office sent Amazon a demand for $269 million in uncollected sales taxes, plus penalties and interest, from 2005 through 2009.

The state contends that Amazon.com is responsible for the sales tax it has not collected on online sales made in Texas.

The state is seeking money from Amazon because its distribution center in Irving.

Under a 1992 U.S. Supreme Court decision, that physical presence means Amazon potentially could be required to collect sales tax on transactions in Texas, according to legal experts.

Amazon, which reported $34 billion in sales last year, has also been the target of numerous lawsuits filed by other states seeking sales taxes on online purchases.

Amazon officials have not commented publicly on the tax bill from Texas, but the Seattle-based company said in a securities filing last year that it intended to fight the demand.

Amazon filed a lawsuit against the state last month, demanding that it produce the audit that it used to arrive at the $269 million figure.

In his e-mail to staffers, Clark said Amazon also is scrapping plans "to build additional facilities and expand in Texas, bringing more than 1,000 new jobs and tens of millions of investment dollars to the state."

Comptroller Susan Combs has estimated that the state loses $600 million a year from untaxed online sales. The comptroller's office said last year that it has sent demands for payment to other online retailers similar to what it sent Amazon.

ACLU, Amazon face North Carolina tax collectors in Seattle court

Flashback October 13, 2010: ACLU, Amazon face North Carolina tax collectors in Seattle court

North Carolina tax collectors say they want Amazon.com to turn over the names and addresses of customers in their state and a description of all purchases so they can get the sales-tax money they're owed.

But the American Civil Liberties Union argues that if Amazon is forced to comply with North Carolina's data demands, Internet users would start to think twice about buying controversial books, music and movies, violating their constitutional rights to free speech.

Amazon, which is being audited in North Carolina, says it has provided massive amounts of data about sales to state residents since 2003, including the city, county and ZIP code to which an item was shipped, the product code and total transaction price, but it did not turn over names and addresses.

Amazon says disclosure of such data would have a chilling effect on people's willingness to buy books, music and other "expressive works" that might reveal an intimate fact about them. The ACLU agrees, saying the seven Amazon customers it represents include an elected official in Asheville, N.C., who is an atheist.

"The intervenors have bought books about divorce, atheism, personality disorders, cancer and numerous politically charged issues," said ACLU lawyer Aden Fine. "It's no surprise the intervenors want to keep that information private and free from government scrutiny."

North Carolina is one of several financially strapped states that have made more of an effort to collect sales tax from online purchases in the past two years.

While the recession has hit many stores hard, Internet-only retailers continue to grow as shoppers become more comfortable buying online. North Carolina argues that because many online shoppers never pay sales tax, Amazon enjoys an unfair advantage over bricks-and-mortar stores. (North Carolina merchants collect state and local sales tax of 7.75 percent in most counties.)

Under a 1992 U.S. Supreme Court ruling, North Carolina cannot force Amazon to collect its sales tax if it doesn't have a physical presence in the state.

Amazon has no offices or warehouses in North Carolina, so state lawmakers last year decided the company's relationships with local marketing affiliates amounted to a physical presence. Amazon responded by severing ties with its North Carolina affiliates, a move it also made in Rhode Island and Colorado.

A few days after Amazon filed its lawsuit, North Carolina offered a deal to Internet retailers, saying it would give them until the end of August to sign an agreement to begin collecting sales tax on products sold to state residents. In return, the state would not come after them for years of back taxes, penalties or interest, and it would not demand data about customers who bought from them.

Of about 450 e-commerce companies that received the offer, 24 entered into an agreement with North Carolina, said revenue-department spokeswoman Beth Stevenson. The state estimates it will lose $162 million in uncollected sales tax from online purchases this year.

Meanwhile, U.S. Rep. Bill Delahunt, a Democrat from Massachusetts, has introduced federal legislation that would allow states to require online retailers to collect sales tax regardless of whether they have a local presence.

North Carolina Drops Lawsuit Against Amazon

Flash Forward February 12, 2011: North Carolina Drops Lawsuit Against Amazon

You probably are aware that online vendors � such as Amazon � do not charge sales tax to customers outside their home state. You also know that this has created much the controversy with the states, ever eager to tax to anything that moves within their borders. To be fair, if a person went a sticks-and-bricks store to purchase an item, the transaction would be sales taxable. It is the intermediation of the internet that presents the problem. And it is a problem. For example, I recently purchased an item from Britain. Would it be reasonable for that vendor to charge me Kentucky sales tax, as I live in Kentucky and the transaction would otherwise go untaxed?

NC went after Amazon, requesting records of Amazon�s transactions with North Carolina residents. Think about this for a moment. The state is forcing a company to release its records about you. You are not involved in the litigation; heck, you are not even aware of the litigation. The privacy concern here is staggering.

The American Civil Liberties Union joined in a lawsuit against NC, and very recently NC settled the case. The state agreed to pay almost $100,000 in legal fees and ceased its action, but it reserved the right to go against Amazon and/or its customers in the future.

North Carolina had previously gone after Amazon for sales tax on the argument of economic nexus. This means that a company has �nexus� with a state if it derives a financial benefit from commercial transactions within that state. This is an interesting argument, in that a variation of that argument would subject me to New Zealand taxes for ordering the Lord of the Rings video trilogy. In Amazon�s case, NC argued that the economic nexus was provided by the affiliates, which are blogs or other online sites that provide links to products and/or offer coupons. I listen to online radio, for example. If a particular song captures my ear, I can click on the site, find out the artist and likely have a link to purchase the artist�s CD. That is an example of an affiliate.

North Carolina continued to chase Amazon for taxes before those affiliate ties were severed, resulting in the settlement mentioned above. Do you see any winner in this story?

The Court Ruling

Please consider the Amazon, North Carolina, ACLU Privacy Lawsuit Settlement

U.S. District Judge Marsha Pechman ruled last October that the North Carolina Department of Revenue had overstepped its boundaries with its request for personal information, and noted that there is "no legitimate need" for them to have such information.

"The fear of government tracking and censoring one's reading, listening and viewing choices chills the exercise of First Amendment rights," said Pechman.

According to Rudinger, Amazon was not part of the settlement, and it was unclear whether Amazon's lawsuit regarding the state's audit was pending on appeal.

In addition to Amazon, the North Carolina Department of Revenue is also facing lawsuits from many online travel companies such as Travelocity.com, Travelscape, Hotels.com, Trip Network Inc. and Orbitz due to the state and counties' tendencies to "arbitrarily change the contracts" they have with hotels in North Carolina.

Texas Tries a Different Tack

Unlike North Carolina, instead of requesting information from Amazon, Texas Sends Amazon a $269 Million Sales Tax Bill

As states grapple with increasingly squeezed budgets, one simmering battle -- trying to collect sales taxes from retailing behemoth Amazon has heated up considerably over the past year. The jury's still out on how much money states like Rhode Island and North Carolina (which is thick in litigation with Amazon over this very issue) will get from online sales-tax initiatives. But Texas has issued its own bill to Amazon -- to the tune of $269 million.

Not Really Doing Business in Texas?

The issue of uncollected sales tax runs deeper in Texas because Amazon maintains a distribution center in Irving (close to Dallas-Forth Worth International Airport), which it opened in 2006. Two years later, the Texas comptroller's office launched an investigation into Amazon's bifurcated status.

The company defended its lack of sales tax collection by saying Amazon doesn't actually own the distribution center. It's owned by a subsidiary, Amazon.com KYDC LLC, which is technically based in Kentucky. Assigning the distribution center to a different holding company, by Amazon's logic, means it doesn't have nexus there -- and that's why it feels it's off the hook.

Of course, Texas disagrees, having estimated it loses $600 million a year from untaxed online sales. With a bill sent to Amazon, that opens the door to long-expected litigation between the two parties as well as to the possibility that other states will jump on the collection bandwagon. It may also hamper the retailer's plans to open several more distribution centers around the country because the prospect of sales tax collection may prove too much -- and too costly -- of a headache.

Amazon Threatens to Leave 10,000 California Affiliates

Inquiring minds are investigating a March 2, 2011 post on Bloomberg: Amazon.com Threatens to Cut Ties With California Affiliates Over Tax Issue

Amazon.com Inc. (AMZN), the world�s largest online retailer, has threatened to sever ties with more than 10,000 affiliates in California amid a dispute with the state over proposed taxation of Internet purchases.

Four state proposals aimed at forcing Seattle-based Amazon to collect taxes from residents may be unconstitutional and lead to job losses, Paul Misener, Amazon�s vice president for global public policy, wrote in a letter to the California Board of Equalization.

Amazon�s affiliates put ads for the retailer on their websites and then get compensation when shoppers click through and buy items. Californians could still shop at Amazon.com, though state businesses would miss out on the ad sales, potentially hurting tax revenue, the company said in the letter. When other legislatures passed similar provisions, Amazon terminated its affiliate relationships and then collected no sales tax for those states, according to the letter.

Amazon and California tussled over the tax issue in 2009, when the state considered a similar measure. Governor Arnold Schwarzenegger vetoed the bill after Amazon said it would terminate the affiliate relationships, according to the letter. That same year, Amazon cut ties with affiliates in Rhode Island, North Carolina and Hawaii over tax disputes.

I am an Amazon affiliate in Illinois. I make 30 cents or something when someone buys a book on my recommended reading list. It does not cost anyone a penny.

Indeed, if someone would rather that 30 cents go to Amazon instead of me all they have to do is remove the tag "mishsglobalec" from the link. Note that 30 cents is a made-up number because it varies by price and I do not even know the percent. My recent statement shows a total of $246.62. I wonder how many books that is.

Will getting rid of 10,000 Amazon affiliates in California accomplish anything? If so what, and in what timeframe?

Consider my blog for example. Will I change my recommended reading list or stop pointing to Amazon? The answer is no. Amazon provides a good service and fast execution in my opinion. I am not using Amazon for the money. Others may be, but how much would it matter?

It will be interesting to see how this plays out.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Half Dose #84: Flower Power

2011-03-02T19:30:00.000-08:00

The following text and images courtesy Lacoste + Stevenson Architects for their Reg Bartley Oval Ground Staff Facilities and Public Amenities in Rushcutters State Park NSW, Australia.

The refurbishment of the Reg Bartley Oval Grandstand at Rushcutters Bay in Sydney required restoration of the existing grandstand and the construction of new public amenities and ground staff facilities. The brief included demolition of three buildings that surrounded and attached to the grandstand, cutting it off from the street and parkland behind.

The design strategy was to restore the existing structure�s prominence in the parkland and create better physical and visual connections around it. In order to minimize the impact of the new additions, they are placed directly behind the grandstand and divided into 3 smaller buildings instead of one building, reducing the overall bulk and scale. The new buildings are set off the grandstand with a passageway between them.

Connection between the new and the old is on the first floor via a steel mesh walkway that lightly bridges the four buildings allowing light to filter below. The ancillary buildings are clad in the same weatherboard profile as the grandstand and with the heights of the new buildings aligning with the grandstand; they echo the scale and expression of the grandstand.

The ground floor of the three new buildings houses the male and female public toilets and a storage room. At high level, the timber fa�ade into each of these rooms is perforated with a flower pattern allowing natural light and ventilation into these spaces, casting flower patterns around the rooms. The ground staff facilities on the top floor are also animated with perforations and views to the sky and trees through round skylights.

My biggest purge yet!

2011-03-02T19:27:00.000-08:00

Hello there! Hope you�re having a GREAT week!

I mentioned earlier this week that I�m DONE with the decluttering of the basement�this is huge for me peeps. HUGE. Every year for the past few years, I spend what seems like half the year decrapifying this space.

This time, it only took me a whole year. :)

For reals. Seriously. A YEAR.

One thing I have learned on my decrapification journey is that ridding your home of STUFF is not something you can do just once every twelve months. At least in our house � it�s a constant process.

Now our home is a bit different than most. I mean, I tend to gather stuff faster than the average person. It�s the nature of my �job� � being a home decor blogger. Add to that a thrifty home decor blogger, and it just spells T.R.O.U.B.L.E.

It physically pains a thrifty blogger to leave that perfect such-and-such or so-and-so at their local Goodwill because if I see it, leave it and walk out without it, OHDEARLORDIMIGHTNEEDIT!!!

Like, tomorrow! Or next week. Or next year?

Or something like that. :)

Sheesh. It is intense people.

But over the past year, I was increasingly over the STUFF. I wanted our house back. I wanted empty shelves back. And I was tired of seeing wasted money sitting around.

I got really intense with it late last summer when my father-in-law passed away. As we went through his house (for weeks), I found my tolerance for our unused, unappreciated stuff was less and less.

I decided then that I only wanted items in our house that 1.) we found useful (and currently USED) 2.) were meaningful to us or 3.) we loved (things that were passed down, or that we truly enjoyed).

If it didn�t meet one of these three, it was gone. Our biggest problem area has always been our basement. It�s just a prime landing spot for junk, obviously.

I�m happy to announce I have gone through and organized every. little. bitty. thing in the space now. It�s done.

I started with my craft area back in January:

This spot holds extra pantry and entertaining items, tools, craft supplies, electronics and my stash of decor stuff. Those plastic shelves are awesome! I think they run about $20 each and really hold up great.

The area to the left of my craft room will be our future movie viewing spot:

Hubs envisions a very large flat screen on that long wall. I see some gorgeous built ins. ;)

We used to have a massive weight system in that space:

And it had turned into a perch for STUFF. We never, ever used it. EVER. For months and years, we kept it, thinking we�d use it again.

We didn�t. :)

(In our defense, there were a few problems that needed to be fixed. We kept saying we�d fix them. We didn�t.)

And then I decided it didn�t meet our criteria � so it was GONE. I called a company to see how much they�d charge to take it down, and it was $250. PuSHAW. I figured I could totally do that myself � so I did.

I spent a few days with a socket wrench and took that baby down. It felt SO GOOD.

We didn�t use it, didn�t love it, so why keep it? Yes, I know it was an investment at one time. But I�d rather it go to someone who would use it, rather than sitting in our basement, acting as a coat rack.

Over the last few months, I�ve moved the majority of the Bub�s toys down to this space:

His DIY train tables are a perfect play surface and there�s plenty of floor space (covered with a carpet remnant). It�s so nice to have a spot dedicated to the toys!

The plastic shelves make an appearance in this area too:

We keep the kitty litter in the spot behind these (under the stairs), so to keep that area as separate as possible, I stapled some cheap muslin up on the studs behind the shelves.

I also hot glued a fun polka-dot fabric to the backs of the shelves:

It helps to keep the toys put and it�s just a dash of cute. :)

We already have some great lighting in the basement, but there�s a few spots that need a little extra. I�ve found these plug-in lights at most hardware stores:

They ROCK. Ours hold up to a 150 watt bulb. It�s fantastic for extra light! (They run about $7 each.)

One of my favorite changes in our basement is hubby�s office. It used to look like this:

Actually, it usually looked like a pit of despair. The floor was always covered with fake snow, ornaments, fall leaves and Easter basket filler. :)

Both walls were filled with storage bins, and eventually I realized it was a waste of great space. After MUCH purging, I moved them to the end of the basement instead:

I�m hoping to get some fantabulous shelving to organize these even more. It is ridiculous that shelving makes me so giddy. :)

Now that former bin-filled space is hubby�s office:

It�s actually a really cozy space! As cozy as cement walls and floors can be anyway. I like to think of it as loft-like. ;) Hubs writes music, so he LOVES this spot. It�s far enough away so that he doesn�t bother us with the music and we don�t bother him.

When I said I went through every little thing in this space, I�m not kidding. I can�t even believe how many paint cans we had:

Insanity!!

Even though I had purged the holiday stuff last Christmas, I still had a pile of STUFF that I hadn�t organized:

My tower of junk had fallen, so it gives a little extra drama to the madness. ;)

And I even went through each and every CD and floppy disk from up to ten years ago:

I spent hours at the computer going through files. I was determined to get it ALL done.

I took the last of the purge upstairs over the weekend and I was SO HAPPY when I saw the amount of storage stuff I didn�t need anymore:

Over the past year, I kept count of the large storage bins I�ve sold or given away. It was right at 17. Seventeen big bins � and I didn�t keep ONE. That doesn�t even count all of the baskets, small bins, shelves�whatever. All of them are gone!

I didn�t want the temptation.

From now on, if I can�t fit an item the storage we have, then something has to go. My hope is to never buy another storage bin again�forever and ever AMEN.

I snapped that picture above and texted my girlfriends to come and get free storage stuff�and even after one showed up and took a bunch of them, I still ended up finding more to add to the pile:

And then more:

I was on a roll. :) I gave a bunch to friends, and the rest was donated or taken to consignment.

Obviously, we still have lots of things. I like things. Pretty things, shiny things, thrifty things. I�m just not going to let them take over our home anymore.

So now, our foyer looks like this again:

It�s the first time in months I haven�t had a Goodwill pile by the front door. It feels good. :)

And our problem area, the spot where STUFF went to die�is now organized and ready for the (hopefully this year, crossing my fingers, pretty pretty please!) finished basement:

Whew. Just�WHEW. It nearly beat me people. But I overcame the clutter. :) Now�if I can just keep it in check!

So that�s the tale of my biggest decrapification yet. It didn�t happen over a weekend. Or a month�or even a few months. But it happened. And that�s all that mattered.

WHOO!! :)

Now�onto more decorating and DIY! (Double whoo!)

Roubini-Founded Consulting Firm Sees $100 Billion in Muni Defaults, Says Current Assumptions "Pollyannaish"; FDIC "Shock Testing" Includes Munis

2011-03-02T11:07:00.000-08:00

A consulting firm founded by economist Nouriel Roubini said there could be close to $100 billion of municipal-bond defaults over the next five years as state and local government-debt problems damp the U.S. economic recovery.

That figure would by most estimates represent a significant increase over defaults in recent history, but it doesn't appear to be as dire as a prediction last year by analyst Meredith Whitney.

The report, by David Nowakowski and Prajakta Bhide at Roubini Global Economics and released to clients Monday, says state and local debt problems aren't "systemic" in nature, nor will they "infect the financial system." The authors of the report declined to comment.

Most of the defaults will occur among special government projects and revenue-generating entities that aren't considered viable, it says. "Defaults will continue to be isolated events."

The Roubini report says that relying on the history of low default rates in the municipal debt market is "Pollyannaish."

"Avoiding a crisis will involve real austerity that has only partially been implemented thus far," the report states.

Pollyannaish but not Systemic?

I do think there is a systemic concern in regards to pension funding. State public pension funds are $3 trillion in the hole and that is a systemic concern in and of itself. I do not have an estimate for city and county public pension plans but that could easily be another $3 trillion in underfunding.

Cities and states are without a doubt insolvent as I type. Oakland, Detroit, Miami, San Francisco, Los Angeles, Houston, Cincinnati, Newark, and countless other cities big and small are insolvent.

It is unclear if Roubini Global Economics considers those pension problems as a separate issue. I will see if I can get an answer.

Otherwise, my assessment is similar, at least for now. I do not think we see a massive wave of defaults on bondholders. The biggest defaults will affect pension plans (assuming nothing is done), not bondholders in general. Promises that cannot be met won't, and public pension plans are near the top of the list.

Nonetheless, the defaults that do occur will rattle the municipal bond market and deservedly so.

Bank Borrow-Short Lend-Long Schemes

I do have another systemic issue in mind. I discussed it in The Next Borrow-Short Lend-Long Guaranteed to Blow Up Bank Lending Scheme; Citigroup, Chase, Bank of America CD Ripoff

The issue is banks have gone straight to direct issuance of loans to municipalities, bypassing the bond market. Banks are lending straight to municipalities at rates as low as 3.85% for 21 years. Those terms are begging for trouble.

Here is my comment from the above link.

Fed or FDIC Should Stop this Fraudulent Scheme Now

The Fed or FDIC should step in right now. There is no way banks can secure cost of funds for 21 years for 3.85%. Moreover, the risk of default is hardly zero, and banks will not be first in line should default happen.

I think borrowing-short and lending-long is fraudulent. How can you lend something for 21 years when you only have the right to use it for 3, 5, or 7?

Please see my discussion for more details.

FDIC Shock Testing

In response to that post, I received an interesting Email from "ABO" a Bank Owner and CEO regarding new FDIC shock testing exams.

ABO writes ...

Hello Mish

You nailed it on the CDs. I just got done with an FDIC exam and they requested shock testing 400 basis points up and nothing down. Hard to go below zero.

In terms of 5 to 7 year CDs a 15 year GNMA is probably a better way to go. Don't buy them at a premium and look at average life of 4 to 5 years. They are zero risk based as well.

Anyway nice job I could not agree with you more.

Last week a Bloomberg columnist asked for details regarding that stress test. Unfortunately, not only are the findings confidential, but so are the questions.

However, I do have a bit more to add from a second email exchange with ABO.

Shock Testing Now Includes Munis for First Time

ABO Writes ...

The reports and content are confidential, otherwise I would be happy to help you. They also asked us to audit the Municipal bond portfolio for quality as well. That was also a first.

What I told you is 100% accurate. Previously we used a model of 300 basis points up or down. That was the threshold of the shock test. The change certainly makes sense in that not much chance of rates going down by 300 basis points.

I would like to see the US Treasury shock testing for 400 basis points! By the way we are a very high quality bank with no problems so the request was not about us. We sort of live in the good old days of banking with excess capital and a 50% loan to deposit ratio with no wholesale funding. I am a strong liquidity guy as well.

I asked ABO for a contact at the FDIC so I can raise my concerns directly. I do not have a response on that yet.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Digital painting tutorial Character design Dark Mage

2011-03-02T10:45:00.000-08:00

Digital painting tutorial Character design Dark Mage. Here is another character design I just got done last week. I post it along with the previous post. But then I realize the post was way too long so I split them. Now she has her own home instead of rooming with those Terminators and Skynet.

This character is conceptualize around the idea of the dark side magic user or Mage. The first time I heard about a Mage was probably way back when I was still play Final Fantasy on Playstation. Final Fantasy 7 is probably my most favorite.
The Black Mage is the offensive magic caster. While the Black Mage has weak physical combat skills and has lower strength out of any character class, she is capable of inflicting negative status effects and causing great damage to the enemy with his Black Magic.

In this piece, I use a lot of custom brushes and hardly use any default Photoshop brushes. Though the principle remains the same, focus on the correct shape or form and value (light and dark). One great advantage that most custom brushes has over the default round in Photoshop or Gimp is the way they can create edges. Most custom brushes has texture which makes it easier for us to paint cooler looking edges.

Other than this step by step digital painting process tutorial, you might also want to check out values tonal study female figure, and more basic how to draw video and step by step go watch How to draw lesson girl face, How to draw person head basic. Anddigital painting tutorial rogue samurai female.

If you are looking for portrait rendering and/or painting instruction go to Draw girl's face how to lesson video and step by step and learn how to draw face, woman. Or simply click on the thumbnails on the very top of this blog. A lot of people ask me about female character sheet or proportion sheet. You can check out female model sheet or female figure study woman body proportion sheet.

Here is Dark Mage character design

Also step by step digital painting process below

Below is what I listen to while I was painting this, and one of them FREE download from Amazon. Click fast forward for the next song.

Amazon.com Widgets

Here is a final version:

Here is a bigger image download: Fantasy Art Dark Mage

CHECK OUT our full length PREMIUM video tutorials

USA Incorporated - a Look at the Grim Financial Situation of the USA

2011-03-02T01:56:00.000-08:00

Inquiring minds are digging deep into a 266 page PDF called USA Inc. a basic summary of America's financial statements.

It is loaded with stunning graphs and charts on Social Security, Medicare, Medicaid, TARP Bailouts, Fannie Mae and Freddie Mac, military spending, tax revenues, and various projections. Here are a few images, but please give the document a closer look when you have a few moments.

Click on any chart to see a sharper image.

Cash Flow

Expenses at a Glance

Unfunded Liabilities

Federal Spending as Percent of GDP

Note this mess started with the creation of the Fed

Growth in Entitlement Spending

Take a step back, and imagine what the founding fathers would think if they saw how our country�s finances have changed. From 1790 to 1930, government spending on average accounted for just 3% of American GDP. Today, government spending absorbs closer to 24% of GDP.

Spending + Interest vs. Revenues

By 2025, entitlements plus net interest payments will absorb all � yes, all � of USA Inc.'s revenue, per CBO.

Less than 15 years from now, in other words, USA Inc. � based on current forecasts for revenue and expenses - would have nothing left over to spend on defense, education, infrastructure, and R&D, which today account for only 32% of USA Inc. spending, down from 69% forty years ago.

This critical juncture is getting ever closer. Just ten years ago, the CBO thought federal revenue would support entitlement spending and interest payments until 2060 � 35 years beyond its current projection.

To 25 Countries in Defense Spending

Entitlement Spending by Household

Medicaid Underfunding

When Medicaid was created in 1965 to provide health insurance to low income Americans, 1 in 50 Americans received Medicaid, now 1 in 6 Americans receives Medicaid.

Healthcare Spending

Social Security Workers vs. Retirees

Social Security Dependents

GSE, Fannie Mae, Freddie Mac Expansion

If that is not a shocking state of affairs, what is? There are lot more charts and graphs in the PDF.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

The day of terminator is near?

2011-03-01T14:00:00.000-08:00

The day of terminator is near? I love robots, even more so giant robots since I was a little kid. Too bad I didn't end up being a Robotics engineer. Well, just the thought of that would be really weird. Anyway, I end up design characters and creatures for video games instead of a real robot. I read WSJ about US military is ordering more robots this morning. So I thought, we might very close to the day of "Skynet" if we put all of these together. Or are we there?

Anyway, this post is not about me. It is about us and where we are heading with our robotic technology. Recently there is "Watson", a super computer from IBM on Jeopardy. Watson seems to represent a giant leap forward in the field of natural-language processing�the ability to understand and respond to everyday English. It's not a surprise to me that IBM's Watson super computer beat 2 of the greatest Jeopardy champs (humans) in three rounds of head to head action. What do we expect? Humans will win in memory contest over a computer? But anyway, that was impressive.

Here is WATSON

Other than the awesomeness of Watson, there are others. They might not be as smart, but they are the stepping stone to the T-days. Meet BIG DOG, BigDog is the alpha male of the Boston Dynamics robots. It is a rough-terrain robot that walks, runs, climbs and carries heavy loads. BigDog is powered by an engine that drives a hydraulic actuation system.
Below is the Big Dog video:

Other than big dog, now US military also commission Boston Dynamics, to develop two new robots: one will be a super fast quadruped called Cheetah, the other is a beautifully intricate, freakishly scary full-size humanoid called Atlas. Having seen all these, I am hopeful that I will get to see a fully function giant robot in my life time. Images are below.

"Cheetah"

"Atlas" or T-800?

Whao!

Today's archidose #479

2011-03-01T12:45:00.000-08:00

016 sm, originally uploaded by synecdoche desgn studio.

"Wood Edges" installation by Lisa Sauve and Adam Smith, of Synecdoche, and Brad Cooper. The installation is from the Fall 2010 Material Fringe class at the A. Alfred Taubman College of Architecture and Urban Planning, University of Michigan, done under lecturers Adam Fure and Ellie Abrons. Many more photos can be found in synecdoche design studio's flickr set on the project, and more information can be found at Architizer.

To contribute your Flickr images for consideration, just:

:: Join and add photos to the archidose pool, and/or
:: Tag your photos archidose

Oil Prices are Double-Edged Sword; Peak Everything?

2011-03-01T12:28:00.000-08:00

Jeff Rubin, former Chief Economist at CIBC World Markets for twenty years, explains Soaring Oil Prices A Double-Edged Sword in the Middle East.

Why is the Arab world convulsing with social and political unrest when triple digit oil prices should be bringing enormous wealth to the region? The answer may be that the link between energy inputs and food prices suddenly makes soaring oil prices a double-edged sword in the world�s largest food importing region.

Egyptians are about to find out that it is a lot easier to eradicate your local dictator than feeding your population. The crush of poverty is felt under the weight of a population of 80 million people who live in a country where average annual rainfall is less than two inches and where only 3% of the land is arable. Aside from a narrow strip along the life-sustaining Nile River, Egypt is basically an inhospitable desert.

Yet the population of Egypt has tripled to 80 million today from 27 million in the early 1960s. While the birth rate for an average Egyptian woman has fallen from six children to just over three, it still fuels more than 2% annual growth in the population. At this pace, Egypt�s population will double to 160 million by 2050.

But the country is already importing 40% of its food supply and 60% of its grain. Even a brutally repressive regime like Hosni Mubarak�s still spent 7% of the country�s GDP on food and energy subsidies. Can a replacement regime afford to spend more?

Not likely, particularly when the country�s oil production peaked in 1996 and has subsequently declined by 30%. Oil exports are down 50% thanks to strong demand for its subsidized fuel.

The problem facing Arab countries today is higher oil prices feed directly into higher food prices. While oil may be massively subsidized in the Middle East, it�s not in major grain exporting countries such as Canada, Russia and Australia that Arab nations increasingly count on for their food supply.

From the diesel fuel that runs tractors and combines to the power needed to pump water through irrigation systems, modern agriculture is one of the most energy intensive industries. And the Middle East is the largest food importing region of the world. As the price of oil goes up, so does the price of food imports.

Egypt�s problems feeding runaway population growth is not unique to the region.. They are in evidence throughout the Middle East given the masses now out in the streets in Libya, Algeria, Yemen, Jordan and Bahrain demanding regime change. Could Saudi Arabia be next?

Population growth in the Middle East is rapidly outstripping the carrying capacity of the land. Democratic reform may be what is on the protestors� lips but demographic reform is at the heart of the region�s problems.

Oil and the End of Globalization

Jeff Rubin left his position at CIBC World Markets to write a book and promote his ideas.

I have not yet read Why Your World Is About To Get A Whole Lot Smaller , so I cannot specifically endorse it.

However, I can say that understanding the implications of peak oil and booming population growth in the Mid-East, India, and Asia, in conjunction with aging demographics in the Western economies and Japan are crucial to understanding major investment themes and world economic growth assumptions.

I have long held the position that perpetual 7 -10% growth assumptions for China are impossible because of peak oil constraints.

Yet China bulls persist. They see the growth, but not the fraud or the malinvestment it takes for China to achieve those growth estimates.
I talked about fraud in China as well as unsustainable growth on a number of occasions.

Here are a few links.

Speculation, Investment Scandals, Fraud, and China's Hard Landing; Miracle of Chinese High-Speed Rail will be Reduced to Dust; Peak Oil Doomsday Clock

Implosion of the China "Fabric City" Frenzy

10 Signs of Speculative Mania in China

Email from a Chinese on China's Real Estate Bubble

Peak Everything?

My friend BC writes ...

If one wants to identify a single underlying causal factor for "Peak Everything" and the global intractable structural effects flowing from it, population overshoot is it. However, population growth is the last taboo subject no one dares discuss because, frankly, there is only one highly unpalatable solution.

Peak Oil is increasingly a hot topic of late (the point of mass-social recognition is nearing, or here). Yet, peak oil exports from oil-producing countries is the next milestone to await, as these countries now face exploding populations of hungry young men in need of employment from domestic investment and efforts to prevent per capita output from collapsing.

Net energy returns per capita are already collapsing for many or most of these countries at or near peak oil production, with the oil they produce needed to supply not only the US and EU but the runaway growth of demand in China-Asia and increasingly their own populations.

In Egypt, per capita oil production has collapsed nearly 50% since '96, and 33% since 2000. A similar situation occurred in the US, except it took 25 years in the US compared to Egypt's 14.

At the current trend, assuming no increasing rate of deceleration, by '16-'22 Egypt's per capita oil production will have fallen 60-70%, which puts the country on course for certain collapse.

What we are seeing today with the uprising and overthrow of the Egyptian government is just the first phase of a collapse that will likely be replicated throughout North Africa, the Mid-East, Central Asia, and eventually to parts of India, China, Indonesia, and elsewhere in the world where population overshoot is now extreme and net energy per capita is falling or collapsing.

A little known fact is that Mexico's oil production is down 25-30% from the peak in '03-'04, which is an average rate of decline of 5.4%/yr. and 6.5%/yr. per capita. This translates into a 33% per capita decline in oil production in just 6 years, a rate of decline that actually exceeds Egypt's per capita rate of decline of oil production.

This rate of decline of production has cut Mexico's exports roughly by 35% since the export peak. At the trend rate of oil production and domestic consumption, Mexico could become a net oil importer as soon as '15-'18. And Mexico is the second-largest supplier of imported oil to the US behind Canada.

Consider, then, where per capita oil production, net energy, and GDP are headed in Mexico, and what it implies for countries of Central and parts of South America, as well as potential increasing immigration to the US from Mexico.

This is grim information to ponder, which should be no surprise why few want to address it.

Those are sobering thoughts indeed. History suggests massive conflicts if the above analysis is anywhere close to being correct.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Collective Bargaining Bill Heads for Passage in Ohio

2011-03-01T09:13:00.000-08:00

A collective bargaining bill is headed for vote today in Ohio. Unlike the bill in Wisconsin, the Ohio proposal will cover police and fire workers. Unfortunately it has been watered down a bit to gain needed support from several Republicans.

The New York Times reports Ohio Set to Vote on Ending Public Union Rights

The Ohio Senate is expected to consider a revised version of a bill to end collective bargaining on Tuesday, and union members gathering outside the Statehouse here Tuesday morning said they were bracing for the worst.

Unlike similar legislation in Wisconsin, which exempts police officers and firefighters, the Ohio bill includes them � and is controversial for that reason.

But Republicans say the legislation that seeks to eliminate long-held union prerogatives are part of broader austerity measures intended to reduce crippling budget deficits, of which public employee pensions have played a growing role.

In Wisconsin, the political divide was expected to only widen on Tuesday as Gov. Scott Walker prepared to announce his budget proposal, which is expected to cut $1 billion in aid to local government over two years.

By early Tuesday, critics of Mr. Walker were already gathering, as they have for two weeks, outside the Capitol. Security was tight, and only some people were allowed to enter. Mr. Walker, a Republican whose proposal to cut collective bargaining rights for public workers and increase their pension and health care contributions has set off a firestorm here, will present his budget in the state Assembly chambers. Some Democrats were already predicting that the cuts in his new budget might lead to still more protests, more disagreement, more of a split in this state�s Republican-dominated Capitol.

In his two-week-long standoff with Democrats and state employee unions, Mr. Walker has pressured 14 Democratic state senators, who have fled the state, to return to deal with what he says are important fiscal deadlines that would otherwise pass this week and harm the state.

But the Democrats are staying put, in Illinois, to avoid a quorum and thus stall a proposal by Mr. Walker that would strip public employee unions of nearly all their collective bargaining powers, allow publicly owned power plants to be sold with what critics say is little guarantee of fair value, and give the governor�s appointees what public health advocates describe as expansive new powers to limit health care coverage for lower-income residents.

The NYT article failed to point out the details or recent compromises that have watered down the bill.

As originally proposed the bill effectively ended all collective bargaining rights for all public unions. Unfortunately that will not pass. A recent revision to gain key votes will allow bargaining for wages only, not benefits. It also places a no-strike clause.

This is not perfect. Perfect is getting rid of public unions entirely. However, it is a good start.

In Wisconsin, Governor Walker will begin laying off workers unless legislators playing hooky in Illinois return to Wisconsin to vote. It is good to see governor Walker hold firm.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

China Holdings of US Treasuries Revised Up 30%; An Unsustainable Model

2011-02-28T23:06:00.000-08:00

Annual revisions released Monday show that China's holding of US treasuries is 30% greater than reported just weeks ago.

I am not surprised given that persistent rumors of China dumping treasuries made little mathematical sense from a balance of trade standpoint. Instead, I suggested China was accumulating treasuries via trading desks in the UK. We now see that is precisely the case.

Please consider China's holdings of US debt jump 30 percent

China, the biggest buyer of U.S. Treasury securities, owns a lot more than previously estimated.

In an annual revision of the figures, the Treasury Department said Monday that China's holdings totaled $1.16 trillion at the end of December. That was an increase of 30 percent from an estimate the government made two weeks ago.

China was firmly in the top spot as the largest foreign holder of U.S. Treasury debt even before the revisions. But the big increase in Chinese holdings could ease fears that Chinese investors might begin dumping their U.S. holdings. Such a development could send U.S. interest rates rising. That would slow America's economic recovery and increase Washington's costs for financing the $14.3 trillion national debt.

China and Britain were the countries with the biggest revisions in the new report.

The amount of U.S. Treasury securities held by Britain fell to $272.1 billion in the new report. That's a drop of $269.2 billion from the last monthly report which put the Britain's holdings of U.S. debt at $541.3 billion. The holdings of the two countries often show big revisions when the annual report is released.

The reason for the change is that Chinese investors who purchase their Treasury securities in London are often counted as British investors. The more detailed annual report does a better job of tracking the countries in which investors reside as opposed to the location where investors make their purchases.

Even with the revision, Britain remained the third largest holder of U.S. Treasurys.

Japan had the second highest foreign holdings, totaling $882.3 billion at the end of December. The revision was only slightly below the original estimate.

The total foreign holdings of Treasury debt stood at $4.44 trillion at the end of December, according to the new report. That's up 1.5 percent from the estimate made two weeks ago. About two-thirds of U.S. Treasurys owned overseas are held by foreign governments and central banks.

Thoughts on Dumping Treasuries

Please note the comment in the article: "The big increase in Chinese holdings could ease fears that Chinese investors might begin dumping their U.S. holdings. Such a development could send U.S. interest rates rising. That would slow America's economic recovery and increase Washington's costs for financing the $14.3 trillion national debt."

The odds of China dumping US treasuries are tiny. The last thing China wants to do is put massive upward pressure on the Yuan, and dumping treasuries would likely do just that.

Moreover, please consider the basic math. The US runs a trade deficit, so other countries accumulate dollars. For more on the essential math, please see US Dollar About to Lose Reserve Currency Status - Fact or Fantasy?

Given that dollars held by foreign central banks earn no interest, governments buy other US assets instead, notably US treasuries. Last year China's bought massive amounts of US treasuries via UK banks or brokers.

Unsustainable Model

Although it is relatively easy to explain what is happening and why, it's also important to know the existing global currency hegemony will eventually collapse because the current model is unsustainable.

Countries cannot run massive deficits forever.

However, a global currency crisis does not necessarily start with the US dollar, nor does a crisis necessarily happen any time soon. A major crisis starting with the Euro, the Yen, the British Pound, or the Yuan is at least as likely, and the timeframe can be months or years away.

Whenever it happens, don't be caught without gold.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Thrifting �lady date�

2011-02-28T20:58:00.000-08:00

Hey all! Thanks SO much for all the wonderful comments and emails about our sweet Peanut! Many of you asked, and he�s a Chihuahua/rat terrier mix. They called him a Chia Rat. ;)

We had such a great day with him. He slept ALL night last night and didn�t make a peep! We had a great visit to the vet � and he�s really healthy. (That was a relief!) And tonight he �went� outside for the first time! (TWICE!) It was like potty training the Bub all over again � so exciting!! ;)

Anyway, we�re figuring things out as we go. One thing I know for sure is that he LOVES our son so very very much. OH my�they are nuts about each other. It brings tears to my eyes every time I watch them together.

I�m finishing up a few things in the basement before I show you the difference decluttering made. :) Until then, I wanted to share some finds from my recent trip downtown Indy to Midland Arts and Antiques:

Three girlfriends and I went for a Saturday �lady date� � as one of my friends called it -- (love that!) out to eat and then to Midland for some antiquing.

If you live near Indy and you love the thrill of the hunt�you MUST take a trip there. It�s an old (HUGE!) warehouse full of fabulous finds.

I snapped shots of a few things that caught my eye. As with most antique stores, you�ll find some good, bad and definitely ugly. :) You�ll also find real antiques, lots of vintage (especially mid-century modern right now) and also stuff you could also find at any Goodwill. :)

I found a few clocks turned cloches:

Do they look familiar?:

The only difference � I bought my 80�s clock-turned-cloche for $3 at Goodwill, and these were both over $40 if I remember right. :)

The fabulous light fixtures are endless! Some are funky:

If we had a wine cellar, I would totally put this there! But alas, we don�t. :)

Some just need some spray paint and they�d be a close Pottery Barn knock off:

And check out this one:

SWOON! It looks SO similar to the one hanging in our dining room:

And mine was a knock off of another Pottery Barn light. I think the one at Midland is even bigger, and is the same price as our Home Depot light (now $180 I believe).

I found a gorgeous mirrored tray that would be stunning on any dresser or buffet:

And this mirror would be beautiful as is, painted a bright white or even an unexpected color:

I loved these cane side tables:

And I kept going back to this chair and ottoman:

They were in fantastic condition! I could totally see them in hubby�s office in the basement � but as you know, I�m getting rid of stuff down there right now (for the impending finishing off of the space).

You�ll always find the downright weird too. :)

Birds on display anyone?:

And these chairs in your dining room would be a conversation piece for sure!:

I found a few goodies I took home from our trip, of course.

I loved this little bird cagey candleholder:

I won�t use it for candles though. I see a nest or something spring-like nestled in there. :)

I have wanted a vintage fan forEVER�and this one caught my eye:

It was my biggest splurge of the day by far, at $25. I cleaned it up and considered spray painting it. But I also love it as is. Hmmm�

I thought this two-sided mirror was so sweet and dainty:

It�s the perfect addition to my Mom Cave. :)

There were bins full of old Bingo cards:

I only grabbed three for an idea for the playroom. I�m thinking I could use more though.

And this little bunny letter opener was my favorite find of the day:

It was one of those things�I thought it was just adorable. It was only $2, so I couldn�t pass it up.

I had to leave midway through the shopping to get back to the sitter, but it was a good thing. I�m sure it would have been dangerous to stick around too much longer. :)

Sometime I�ll have to coordinate a shopping trip for local readers and bloggers � it�s a great afternoon of digging for goodies!

Have you found any great thrifting finds lately? Any good spots in your neck of the woods?

Monday, Monday

2011-02-28T20:45:00.000-08:00

My weekly page update:

This week's dose features Holmenkollen Ski Jump in Oslo, Norway by JDS Architects:

The featured past dose is SkiBox Portillo in Portillo, Chile by Del R�o-N��ez Architects:

This week's book review is The Power of Pro Bono: 40 Stories About Design for the Public Good by Architects and Their Clients edited by John Cary and Public Architecture:

american-architects.com Building of the Week:

Split House in Sagoponac, New York by K/R:

Some unrelated links...will return next week.

Update site with awesome social toolbar by wibiya

2011-02-28T18:03:00.000-08:00

Update site with awesome social tool bar by wibiya. The more I test the toolbar the more I am in love with it. It is the sweetest and smartest browser upgrade tool I have seen in years! It make your website and blog looks smarter with seamless integration. You guys can also browse and chat and share images or video with your friends thru Gmail, Facebook, and more without having to leave the blog. It makes you feel a little more closer like a community than previously.

Wibiya built a cool toolbar which is useful, neat and builds on current trend in websites. Another advantage is the easy installation and configuration. The plugin is easy to install. This toolbar is very user-friendly. Also new applications are added to the Wibiya platform all the time.

I would suggest you play with it by click on all the buttons. They are addictive, interactive and fun. Feel free to give me the feedback on the comment below. Don't forget to try to chat with each other while you are here.

Below are explanation of how each icon or favicon works on the toolbar on the bottom of our page.

On the Far left of the bottom tool bar:

A: "Real Time Users" - shows readers how many others are online and what they�re reading. It displays web's stats in real time. And now you know, you aren't alone here.
B: "Donate via Paypal" -You can now support idrawgirls.com by donation for good karma. ;-)
C: "Premium Tutorials" -Quick access to see the list of our premium video tutorials without living the blog.
D: "Translate" -Let you translate any page on the blog into any language with just a click of a mouse.
E: "Recent posts" -Keep you up to date by displaying the most recent posts on the site or blog with just one click.
F: "Share" -Share the content, images, page on the blog via selected network you sign onto.

Mid section of tool bar:

G: -"Facebook like" - Allows readers to like your official facebook page without leaving your site via a popup. If you want to just like the this page, click like icon on the top right column of the blog.
H: "Contact Us" -Now you can just click that icon and write to me via email without having to open up your inbox.

On the Far right of tool bar:

I: "Subscribe" - Allows you to subscribe to your RSS feed.
J: "Youtube" -Allows you to see all our videos from our Youtube channel via Cooliris integration without leaving the blog post or reloading the page. **So cool a must try!!!
K: "Facebook" - Allows you to see our facebook page and the page's activities without leaving the site via a popup window.
L: "Twitter" - Allows you to see our twitter stream as well as tweet a link out about our page without leaving our blog.
M: "Chat" -Allow you to live chat on our website via gmail, facebook, myspace while you are logging in.
N: "idrawgirls Announcement" -Let you know what is new about our site via message pop up.
O: "Minimize" -Allow you to minimize the tool bar if you don't need it.

Other than the bottom tool bar, we also stream line the home page a bit more. And we also bring back idrawgirls books recommendation section. Some of you were asking for it because it was gone for a long time. It took me a long while to implement the whole thing to make the website looks good. I hope you enjoy the new update. New art stuff is coming soon.

CHECK OUT our full length PREMIUM video tutorials

US Dollar About to Lose Reserve Currency Status - Fact or Fantasy?

2011-02-28T16:50:00.000-08:00

A number of sites are commenting on a Bloomberg video in which El-Erian, PIMCO Co-CEO says "Dollar could lose its reserve currency status".

Bloomberg: "Mohammad what does a weak dollar signal to you, a dollar that can't jump up here on a day like we've seen today?"

El-Erian: "It is a warning shot to America that we cannot simply assume flight to quality, flight to safety. That people are starting to worry about the fiscal situation in the U.S. They are starting to worry about the level of debt. They are starting to worry about what they hear about states and municipalities. So, I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past."

Reserve Currency Definition

Before we can debate whether or not the US will lose reserve currency standing, we must first define what it means.

Investopedia defines Reserve Currency as follows.

"A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate."

I accept that definition. Unfortunately Investopedia rambles on with nonsense about the implications: "A large percentage of commodities, such as gold and oil, are usually priced in the reserve currency, causing other countries to hold this currency to pay for these goods."

That sentence is a widely believed fallacy. The reality is no country is obligated to hold dollars to buy goods denominated in dollars.

Currencies are Fungible

Currencies other that illiquid currencies with low or no trading volume (think of Yap Island stones or the Cuban Peso) are fungible. It is a trivial process to switch from one currency to another.

You can buy gold or silver in any country, and I assure you those transactions do not all take place in dollars. Thus, just because a commodity is widely priced in dollars does not mean it only trades in dollars.

That holds true for oil as well.

I keep pointing this out, unfortunately to no avail, that oil trades in Euros right now. There is no selling of Euros to buy dollars on the front causing the oil producers to trade dollars for euros on the back end. The oil states simply sell oil for a price in Euros and then hold Euros in their Forex reserves.

Fact and Fantasy

The first part of what El-Erian said is factual. Here it is again for convenience. "People are starting to worry about the fiscal situation in the U.S. They are starting to worry about the level of debt. They are starting to worry about what they hear about states and municipalities."

Those are true statements. Unfortunately, his "warning shot" regarding reserve currency status is fallacious.

To understand why, let's return to the definition of reserve currency: "A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate."

Foreign Currency Reserve Factors

Trade Volumes
Trade Deficits
Currency Manipulation
Hot Money

Trade Volumes and Trade Deficit

The US happens to be at or near the top of nearly every country's trading partners. The US runs a trade deficit with most of them. Those trading partners accumulate dollars as a simple function of math. We run a deficit, someone else runs a surplus.

Some wonder why the surplus countries do not buy oil or commodities with their accumulated dollars. OK, what does Saudi Arabia, Iran, or Venezuela do with the dollars then?

Does Iran or Venezuela even hold dollars now? Think of the implications of that answer in light of the widely viewed fallacy that one needs dollars to buy oil.

Regardless, of where the dollars end up, those US dollars will eventually return home. Recall that Dubai tried to buy a US port and China tried to buy Unocal. Both were rejected for security reasons. However, those dollars will return home, with China, Japan, and the oil states buying various US assets.

Currency Manipulation

Most US trading partners do not want their currencies to rise, especially China and Japan.

Consider the Yuan which does not float. To suppress the value of the Yuan, China takes US dollars and exchanges them for Yuan at a pegged rate. China does this hoping to create job and boost exports.

The US calls this currency manipulation and it is. However, it is no more manipulative than Bernanke flooding the markets with US dollars hoping to weaken the US dollar and stimulate growth.

Hot Money

Hedge funds and other speculators have moved money to China banking on currency appreciation.

China needs to maintain currency reserves to allow for the repatriation of those US dollars. Michael Pettis at China Financial Markets points out that most of the hot money inflows into China are done by Chinese businesses that understand how to get around rules and regulations regarding currency inflows.

That argument make perfect sense, but the math remains the same regardless of where the hot money comes from.

Global Beggar-Thy-Neighbor Policies

It is pretty pale to suggest the end of the US dollar as a reserve currency when countries hold dollars as a function of math, then hold still more dollars to suppress their currencies, hoping to keep their exports up to "stimulate growth".

Mathematical Impossibility

Another mathematical relationship says the dollar, the pound, the Yen, and the Yuan cannot all be weak at the same time (relative to each other). Yet that is precisely what every country wants. It's mathematically impossible.

You can see the effect in rising commodity prices.

If commodity prices were a function of the US dollar alone, then they would be rising in US dollar terms alone. Instead there is upward pressure on commodities in all currencies.

At some point the desirability to hoard commodities will peak.

Zero Hedge Comments

Zero Hedge commented on reserve currency status about a week ago.

Regarding El-Erian's statement: "I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past"

Zero Hedge quipped:

That's a given - the question however remains, which fiat currency, if any, is willing and ready to step in and replace the USD? With all eyes continuing to be look at the CNY, how long before China finally takes the plunge to find out just who is the real reserve currency in the world?

Will Another Fiat Currency Replace the Dollar?

For starters, Zero Hedge ignored the essential trade deficit math. The US runs a trade deficit, someone else must run a trade surplus.

Second, Canadian dollar and the Swiss Franc do not have enough trading volume. More importantly, there are not enough Canadian Dollars or Swiss Francs to go around. Look at what happened to Iceland when too many plunged into the Icelandic kr�na.

The Canadian and Swiss economies are simply not big enough for them to be global reserve currencies. In regards to the Euro, is Europe in a better fundamental situation than the US? Would it matter even if it was? To answer the second question, please remember trade deficit math.

As for the Yuan, it is complete silliness to suggest the currency of a command-economy dictator-led country that will not even float its currency will be some sort of major reserve currency.

To the extent that China trades with Russia, South Korea, etc., local reserves in varying currencies can happen (and are happening already), but the global significance of it is wildly overstated. The amounts in question are tiny, as a simple function of math.

Will the dollar remain the global reserve currency forever? Of course not. However, it is highly unlikely any of the presumed leading Fiat candidates including the Yuan and the Keynesian wet-dream IMF SDRs (Special Drawing Rights), will take the dollar's place. SDRs are essentially a basket of currencies.

The concept of trading in baskets of currencies backed by nothing is even more ridiculous than the existing setup. People do not buy goods and services in baskets of currencies.

What can replace the dollar?

Gold, or a mechanism like gold that would impose a hard restrictions on perpetual deficits is what its takes to restore sanity. However, we may not see a significant move towards gold until there is a massive currency crisis or revolt against fiat currencies in general, not just the US dollar.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Value of Social Shares

2011-02-28T16:02:00.000-08:00

Adding a widget such as AddThis , ShareThis and Facebook Like button on your site makes it very easy for your site visitors to share your site and content with their friends and followers via email or social media. Even though these are small widgets, that your developers/designers might not have paid much attention to, they add a tremendous value to your business.

According to a recent report by eMarketer 47.5% of the people trust the recommendations of their social media contacts. In order to leverage social sharers you have to make it easy for them to share you content and widgets like these do a good job in making your site shareable.

A small widget like this can save you thousands of dollars in customer acquisition and even retaining the customers via either direct conversions from the traffic driven by shared links or by the brand awareness that those links create.

Monetary value of Social Shares

Most of the sharing widgets have built in analytics to measure the virality of your site/content. Use the analytics report to understand how valuable those shares are. Make share analytics reporting part of your web analytics reporting so that other stakeholders can see the value too. If you need to convince your boss on why they should pay attention to these social shares, tie the value of shares to something more tangible i.e. Dollars/Pound/Euro/Rupee. Here are some of the ways you can tie the value of social shares to money:

Direct revenue
Life-time value of customer gained via social share
Advertising cost savings from the shares

Let�s do a simple calculation to see the value of social shares. In this example I tied the value of �Social Share� to the amount saved in paid search advertising

Example Calculation

Data that you will need:

Clicks Generated� The number of click/visit/visitors generated from Social shares shares. (You might only get clicks/share from the widget analytics but you can easily estimate visits or visitors based on the data from your web analytics tool)
Cost of a visit � You can estimate this from either a blended cost of all your online advertising or simply from paid search.

That�s all. Using the above information you will be able to calculate the �Cost Savings�, the cost you would have paid to drive those visits that you got for free from social shares.
Note: If you are able to tie the social sharing with your web analytics tool then you can not only get accurate count of visits (or visitors) instead of just clicks but also can get the conversions and revenue generated from those shares.

A/B Testing & Optimization
The location of you share widget will have an impact on the number of social shares you get. Social shares present a great opportunity to drive lots of valuable traffic. A/B test different locations of share widget to see how it impacts your bottom line and find the best location for those widgets.

I have attached a spreadsheet that will allow you to calculate the value of those shares and the opportunities optimization present. Just plug in some basic numbers and see the results. Download the spreadsheet from http://anilbatra.com/digitalmarketing/downloads/socialshares.xlsx

Related post: 3 Tools for Measuring the Virality of Your Content

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Clinton Tells Qaddafi "Surrender Now"; More Protests in Yemen, Bahrain, Oman

2011-02-28T10:33:00.000-08:00

Libyan rebels now hold about 80% of the country. France is sending an airlift of medical supplies, including doctors and nurses to aid the rebels. Think anything else might be in those planes?

Regardless, Qaddafi is holed up in Tripoli with options growing smaller by the day. The only country that might take him is Venezuela. Why anyone would take him is beyond me.

US Secretary of State Hillary Clinton has stepped up the rhetoric as International Pressure on Qaddafi Intensifies.

An international campaign to force Col. Muammar el-Qaddafi out of office gathered pace on Monday as the European Union adopted an arms embargo and other sanctions, as Secretary of State Hillary Rodham Clinton bluntly told the Libyan leader to surrender power �now, without further violence or delay.�

Germany proposed a 60-day ban on financial transactions, and a spokeswoman for Catherine Ashton, the European Union�s foreign policy chief, said that contacts were being established with the opposition.

Italy�s foreign minister on Sunday suspended a nonaggression treaty with Libya on the grounds that the Libyan state �no longer exists,� while Mrs. Clinton said the United States was reaching out to the rebels to �offer any kind of assistance.�

France said it was sending medical aid. Prime Minister Fran�ois Fillon said planes loaded with doctors, nurses and supplies were heading to the rebel-controlled eastern city of Benghazi, calling the airlift �the beginning of a massive operation of humanitarian support for the populations of liberated territories.�

Across the region, the tumult that has been threatening one autocratic government after another since the turn of the year continued unabated. In Yemen, protests drove President Ali Abdullah Saleh to make a bid for a unity government, but the political opposition rapidly refused. An opposition leader, Mohamed al-Sabry, said in a statement that the president�s proposal was a �desperate attempt� to counter major protests planned for Tuesday.

In Bahrain, protesters blocked access to Parliament, according to news agencies. In Oman, whose first major protests were reported over the weekend, demonstrations turned violent in the port city of Sohar, and spread for the first time to the capital, Muscat.

Third Night of Protests in Oman

Bloomberg reports Youth Protests Enter Third Night as Sultan Promises to Create Jobs

Hundreds of Omani protesters gathered in the city of Sohar for a third night, demanding that the government open talks on their demands for more jobs, higher pay and more representative political institutions.

Khaled Maqbuli, a leader of the protest, called on the demonstrators at a roundabout in the center of Sohar, north of the capital, Muscat, to stay peaceful and avoid confrontation with the army and the police. Two people were killed, several wounded and a supermarket set on fire over the past two days.

�We are peaceful, we have demands, we are not saboteurs,� Maqbuli, 26, said through a loudspeaker. �We want the government to send civilian people to discuss our demands; we have nothing to say to the military.�

Sultan Qaboos Bin Said, the country�s ruler since 1970, �has received the demands of the citizens in all the provinces and is giving them his attention,� state television reported.

If governments could easily create jobs they would. Look no further than the US for proof. Only private enterprise can create jobs, at least lasting ones.

Governments can only take wealth from one place and distribute it elsewhere, by taxation, by force, or by the hidden tax of inflation that comes from printing money. When the stimulus ends, so do the jobs, except the bureaucratic ones, where massive pension problems and needless bureaucrats remain.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Timing the China Property Crash

2011-02-28T02:40:00.000-08:00

Inquiring minds are investigating Analysis of the Chinese Property Bubble by Huw McKay, Senior International Economist, for Westpac Bank.

China: strong for now but imbalances loom

The strength in China�s January trade data was absolutely remarkable. Going back to 2000, the level of unadjusted exports or imports in a January month has never exceeded the level in the immediately prior December: until now. There are deep-seated seasonal reasons why this just shouldn�t happen - and history had never offered an exception to the rule. So, clearly, seasonally adjusted month-on-month growth was huge - around 12% for exports and 16% for imports. Iron ore import volumes were a monthly record by almost 7%. Sure, global manufacturing had a strong end to the year and business surveys had a respectable January, but this sort of implied demand is bordering on ridiculous. While three consecutive months of triple digit growth in imports to the special economic zones through Q4 argue the export numbers should not be a total surprise (at least on the supply side, never mind who the customers are), we remain astonished by the import surge.

Yes, commodity prices rose and some public and private discretionary inventory building ahead of the lunar new year was likely underway, but neither factor goes all that far in explaining the level of apparent demand. Getting away from levels and getting back to growth, at 51%yr imports are as strong as they were in the first half of 2004, when the authorities saw fit to clamp down on out of control heavy industrial investment, overall fixed investment began the year up 53% and 24 of 31 provinces experienced power shortages as an overloaded grid strained under the pressure. Is that a good description of the current climate? No, not really, but to say that the economy has good momentum opening the year would be an egregious understatement.

?So, the Chinese economy is expanding at a rapid pace � for now. However, the imbalances that have emerged in the policy induced recovery phase have not disappeared. In fact, they have been inflamed. When real estate policy began to be tightened in the first half of 2010, the volume of sales moved broadly sideways (with regional variation), but the volume of new starts continued to rise .

The implications of this are many. One, bringing these projects to completion will generate very significant demand for raw and intermediate materials. This should keep commodity markets well supported in coming months - even if a pull-back from extraordinary January import levels must be assumed, and the fact that base metals prices are extremely elevated already. But the stronger implication is that once these starts do reach completion it seems extremely unlikely that the level of sales will be high enough to comfortably absorb the new supply. That implies that the developer industry will run into some trouble later this year and into early 2012 � and that will impact on activity levels in the construction sector, with predictable flow-on effects for upstream industries inside China and out.

Estimating a precise lead time between starts and completions is not easy. The private construction cycle is young enough that it has yet to establish firm �rules of thumb� for forecasters to adopt. Chinese housing ownership reforms date back to just 1998 and the explosion in private sector housing activity dates to only 2003. We have a single national downturn to ponder (late 2008) in addition to the Shanghai experiment of 2004/05. While the cycle does appear to be settling into more of an established groove, we are not at a point where we can be confident about the leads and lags. Our best efforts suggest that a lead period of between 1� and 2 years is a reasonable if imprecise guide. As the surge in starts dates back to the middle of 2009, the first �cluster� of completions should be hitting the market in physical form later this year, and in �off-theplan� form somewhat earlier. But the post-April rise in starts is a story for early-mid 2012. Where will sales demand be at this time against a backdrop of monetary tightening? Not high enough.

It should be emphasized that we are talking about new supply coming to market. Secondary stock is to be added to the amount of housing available for sale. When the volume of sales fell below completions in late 2008 (Chart 2) developers were forced to discount aggressively to offload their properties. In the absence of a supportive policy shift as part of the second stimulus package, realised prices could have fallen by 20-30%, essentially consuming the entire margin rumoured to be enjoyed by the luxury development sector. The policy response should events play out as expected is a vitally important question. On the one hand, history argues that the �Wen put� (an analogue of the legendary �Greenspan put�) will again be exercised, thereby sparking another wave of subsidised housing speculation and downstream demand for the heavy industrial sector. On the other, the administration�s oft-stated and pragmatic desire to tackle housing affordability concerns, and their desire to ignite the latent consumption impulse, might argue for a very public sacrifice of the developers. Taken together with the current focus on inflationary risks � both immediate and medium term � and a disinflationary trend emanating from residential real estate doesn�t appear to be wildly inconsistent with the broader aims of policy. Whatever balance the policymakers strike, the implications will resonate far afield.

Introducing Peanut

2011-02-27T20:10:00.000-08:00

Hello all! Hope you had a fantastic weekend!

It�s been a great one around here for more reasons than one. :)

I finally, FINALLY got the decrapification of the basement done. I mean, almost every single bit of it. There�s just a few minor things I want to go through, but the big stuff is DONE!

I even finished up going through the guest room closet, which has been on my list for about a year now.

The house feels like it may just float away it�s so light. :)

I was going to show you some of that massive accomplishment tonight, but then something came up.

This little guy:

We found him this weekend, and before we saw him, adding a dog to our family was the last thing on our minds. I mean, for a while I�ve been telling hubby I�d really like to get a dog for the Bub. But we�ve just been talking about it, here and there.

But lately, when I see a dog, something new has been pulling at my heart strings. It�s kinda been weirding me out -- I mean, we�re cat people. Always have been. We�ve both owned dogs in our life, but it�s been a long time for both of us.

But today, I picked up that shaking little guy and he cuddled his wet nose into the crook of my neck, and something in me just absolutely melted.

He cuddled into me, as if to say, please don�t let me go.

It was the same thing this one did the day I found him:

And it was hard for me to shake that feeling. I put him down. Walked away, went back, picked him up. He hung onto me again. Put him down again�walked away. And went back again. This time, I had tears in my eyes.

It was so incredibly hard to walk away from this pup. That last time I put him back down, trying so hard not to cry.

And after that, all I could think about was him. I couldn�t figure out what in the HECK was wrong with me. I had absolutely fallen deeply in love with that face. Hubby thought I was losing it. I thought I was losing it.

After making MANY phone calls to friends with dogs, doing a ton of research online and much discussion with the hubby�we brought him home:

Look at that SQUISHY face.

I can�t believe we own a DOG. :)

The cat�s are adjusting amazingly well. He�s nuts about them. (For real!) So funny.

Peanut has made himself right at home:

He ADORES my hubby. We adore him.

Now excuse me, as I head to bed extra early tonight. It could be a long one. Wish this new Momma a restful night. ;)

But seriously�isn�t he the sweetest thing you�ve EVER seen??

Arab World Embraces Israeli�s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers

2011-02-27T16:27:00.000-08:00

The New York Times reports Arab World Embraces Israeli�s YouTube Spoof of Qaddafi Rant.

A satirical YouTube clip mocking Col. Muammar el-Qaddafi�s megalomania is fast becoming a popular token of the Libya uprising across Middle East. And in an added affront to Colonel Qaddafi, it was created by an Israeli living in Tel Aviv.

Noy Alooshe, 31, an Israeli journalist, musician and Internet buff, said he saw Colonel Qaddafi�s televised speech last Tuesday in which the Libyan leader vowed to hunt down protesters �inch by inch, house by house, home by home, alleyway by alleyway,� and immediately identified it as a �classic hit.�

�He was dressed strangely, and he raised his arms� like at a trance party, Mr. Alooshe said in a telephone interview on Sunday. Then there were Colonel Qaddafi�s words with their natural beat.

Mr. Alooshe spent a few hours at the computer, using Auto-Tune pitch corrector technology to set the speech to the music of �Hey Baby,� a 2010 electro hip-hop song by American rapper Pitbull, featuring another artist, T-Pain. He titled it �Zenga-Zenga,� echoing Col. Qaddafi�s repetition of the word zanqa, Arabic for alleyway.

Mr. Alooshe said he was a little worried that if the Libyan leader survived, he could send one of his sons after him. But he said it was �also very exciting to be making waves in the Arab world as an Israeli.�

As one surfer wrote in an Arabic talkback early Sunday, �What�s the problem if he�s an Israeli? The video is still funny.� He signed off with the international cyber-laugh, �Hahaha.�

Two Versions, With and Without Dancers

original smash hit with dancers

Zenga Zenga Original Link: http://www.youtube.com/watch?v=cBY-0n4esNY

revised version without dancers

Zenga Zenga Revised Link: http://www.youtube.com/watch?v=6GcUutnU2gk

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Museo Soumaya

2011-02-27T14:00:00.000-08:00

An email just landed in my inbox about Museo Soumaya, opening next month in Mexico City. The building is designed by FREE Fernando Romero, and seeing the below image I couldn't help think of the synchronicity with yesterday's post, a photo of two undulating towers outside Toronto. We'll see if more iconic curves make their way onto my web pages in the coming days.

[Museo Soumaya by FREE Fernando Romero | Photo by Adam Wiseman]

The text from the photo link above:

�Museo Soumaya� was conceived as a sculptural building that is unique and contemporary, yet serves to house a collection of international paintings, sculptures, and decorative objects dating from the fourteenth century to the present. From the outside, the building is an amorphous shape that inspires different perceptions in each visitor, while on the inside the museums varied topology reflects the diversity of the collection. The shell of the building is constructed with steel columns of different diameters, each with its own geometry and shape, offering the visitor non-linear circulation. There are 16,000 square meters of exhibition space divided among six floors, as well as an auditorium, a caf�, offices, a gift shop, a multi-use lobby, and storage space. The top floor is the largest space; its roof is suspended from a cantilever that allows natural lighting. The building s fa�ade is made from hexagonal aluminum modules facilitating its preservation and durability.