Vigilant Grandpa

Peter schiff: Congress Avoids the Cliff by Selling Us Down the River

noreply@blogger.com (Bear Hug) — Sat, 05 Jan 2013 21:44:00 +0000

By: Peter Schiff

Thursday, January 3, 2013

With the possible exception of the New York Times’ editorial board (and the cast of The Jersey Shore), everyone on the planet understood that the United States Government needs to cut spending, increase taxes, or both. Instead, after months of political posturing and hand wringing, the Federal Government has just delivered the exact opposite, a deal that increases spending and decreases taxes. The move lays bare the emptiness of budget legislation, which can be dismantled far easier than it can be constructed.

One question that should be now asked is whether Moody’s Research will finally join S&P in downgrading the Treasury debt of the United States. After the Budget Control Act of 2011 (which resulted from the Debt Ceiling drama) Moody’s extended its Aaa rating, saying in an August 8 statement:

“…last week’s Budget Control Act was positive for the credit of the United States…. We expect the economic recovery will continue and additional budget deficit reduction initiatives will be put in place by 2013. The political parties now appear to share similar deficit reduction objectives.”

Now that Moody’s has been proven wrong, and the straight jacket that Congress designed for itself has been shown to be illusory (as I always claimed it was), will the rating agency revisit its decision and downgrade the United States? Given the political backlash that greeted S&P’s downgrade in 2011, I doubt that such a move is forthcoming.

For now, the real budget negotiations have been supposedly pushed later into 2013, when the debt ceiling will be confronted anew. But who can really expect anything of substance? The latest deal emerged from a Congress that is nearly two years removed from the next election. As a result, Congressmen were as insulated from political pressures as they could ever expect to be. Nevertheless, they still chose political expediency over sound policy. If Congressional leadership (an oxymoron that should join the ranks of “jumbo shrimp” and “definite maybe”) could not put the national interest in front of political interests now, why would anyone expect them to do so later? They will continue to ignore our fiscal problems until a currency crisis forces their hand. I expect deficits to approach $2 trillion annually before Obama leaves office. Unfortunately, at that point the solutions would be far more draconian than anything economists and politicians are currently considering.

In light of the extensions of the popular middle class tax rates, the loudly trumpeted tax increases on those individuals making more than $400,000 (and couples making more than $450,000) will not be enough to translate into higher tax revenues. Instead they will result in perhaps $60 billion per year in new revenue to the Federal government that will be more than offset by the new spending announced in the agreement. In fact, with the likely passage of the $60 billion Hurricane Sandy aid package, it will have taken Congress less than one week to spend all of the projected revenue.

But the tax increases will push many individuals in high tax states like California and New York into paying more than 50% of their income in taxes. While many economists are cautioning that higher taxes on the wealthy will take a bite out of spending, in my opinion it is more likely to result in lower business investment, which is far more detrimental to the economy. When faced with diminishing discretionary income, most rich people would sooner cut back on savings and investment than they would on health care, education, home improvements and vacations.

But it should be clear that the rate increases are just the opening crescendo in a symphony of tax hikes on the nation’s entrepreneurial class. President Obama has recently stated that he will consider needed cuts in spending and entitlement programs only if they are coupled with additional tax increases on the wealthy. In other words, as far as the President is concerned, the hikes included in the budget agreement that was just passed didn’t count for anything.

It cannot, or should not, be denied that Washington’s latest fig leaf will have a major impact on the markets. The New Year’s “relief rally” is understandable given the clear implications that the government will simply print its way out of trouble for as long as it can. In the past, fiscal profligacy was held in check by investors who would sell bonds and push interest rates higher whenever it appeared that the government was not serious about national solvency. But with the Federal Reserve now buying the vast majority of U.S. government debt, no such roadblock exists. With monetary and fiscal stimulus pushing up stock and bond prices, and no immediate fear of a rally-killing spike in interest rates, there is no reason to stay on the sidelines. Markets are now driven by stimulus, not fundamentals, and the stimulus is firmly at the wheel. (For more on this – see the article in the January edition of Euro Pacific’s Global Investment Newsletter). But it is important to look at the nature of the rally. Most significantly we would bring investors’ attention to the increase in gold and oil and other assets that are expected to outperform in an inflationary economy. Our new Newsletter edition also includes an analysis of some of the more promising overseas markets.

But by taking the nominal risk out of investing, the government is insuring that the risks to the U.S. economy will grow exponentially. We are now – and will remain – a debt-fueled economy for as long as the rest of the world permits this to continue. But this is no way to create real, sustainable economic growth. On the contrary, it will simply permit the growth of government, the depletion of economic vitality, and ultimately the collapse of the U.S. dollar.

In the meantime, President Obama and Congressional leaders will take credit for a tax cut that is in reality a huge tax increase in disguise. Government spending is the real source of taxpayers’ pain and it is only a matter of time before the bill comes due in the form of inflation. See our Newsletter for fresh analysis as to why inflation may already be higher than you think. Because the deficits will grow even larger, more purchasing power will be lost in this manner than would have been lost had all the Bush tax cuts been allowed to expire. In addition, though entitlement cuts were taken off the table, the real value of benefits could be slashed, as cost of living adjustments fail to keep up with skyrocketing consumer prices. That’s a Fiscal Cliff that will not be so easy to avoid.

Read More by Peter Schiff

U.S. Commercial Real Estate Loans Hit 10% Delinquency

noreply@blogger.com (Bear Hug) — Wed, 30 May 2012 23:34:00 +0000

U.S. 10 Year Treasury Hits

a Record Low Low yet...

NEW YORK, May 30, 2012 /PRNewswire via COMTEX/ -- Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets, released its May 2012 U.S. CMBS Delinquency Rate today (full report available Friday, June 1 at http://www.trepp.com/knowledge/research ).

The delinquency rate for U.S. commercial real estate loans in CMBS jumped 24 basis points in May to 10.04%. In the process, the rate broke through the 10% threshold for the first time ever.

Back in December, Trepp predicted that 2012 could be a rocky year for CMBS in terms of the delinquency rate. This prediction was in anticipation of five-year loans securitized in 2007 beginning to reach their maturity dates. At the time, the delinquency rate was around 9.51%, and it was expected that these maturing loans could lead to a spike of 70 basis points in the short term.

It appears that this prophecy has come true. Up 24 basis points in May alone, the delinquency rate has increased 67 basis points in total since February. Whether the rate finally breaching the double-digit mark will carry some psychological impact remains to be seen.

The good news for the CMBS market is that the five-year loans originated in 2007 were heavily front-loaded. This means that by the end of this June, the number of these loans reaching their maturity date will start to dwindle.

"While cracking the 10% barrier might weigh on the market's psyche for a short time, there are likely better days ahead in terms of delinquencies over the next six months. A big driver of the recent surge in the delinquency rate has come from loans that were originated in 2007 that are coming due now. As we get later in the year, the impact of this trend will dissipate. The next two or three months could be bumpy, but the second half of the year should bring a leveling off of the rate," said Manus Clancy, senior managing director at Trepp.

Currently, $59.1 billion in loans are delinquent. This excludes loans that are past their balloon date but are current in their interest payments. There are $79.2 billion in loans with the special servicer.

The increase in the delinquency rate was driven by weak performance among hotel and industrial loans. Overall, four of the five largest property types saw delinquencies rise. Only the apartment sector improved, and that was by a single basis point.

Delinquency Chart

Sunday Comics: Time to Laugh a bit America

noreply@blogger.com (Bear Hug) — Sun, 15 Apr 2012 17:29:00 +0000

Nancy Pelosi predicts Supreme Court

will back healthcare law.

Newt Gingrich

Selling Fundraising Lists

North Korea Preparing for 2nd Launch

Rush Limbaugh: CNN correspondent

Carol Costello and anchor

Suzanne Malveaux are "clucking hens"

Did anyone notice my heartfelt and sincere

apology to Sandra Fluke?

Mitt Romney:

Arizona immigration laws are

a model for our country.

Newt Gingrich promises NRA that he'll take

the right to bear arms worldwide

Rush Limbaugh:

CNN is leading a war on women

Hilary Rosen:

Ann Romney "has actually never worked

a day in her life. She's never really dealt with the kinds

of economic issues that a majority of

women in this country are facing."

Secret Service Agent making sure all is safe

for President Obama's arrival in Columbia

Tim Geithner: U.S. economy is in a better position

to deal with high gasoline prices

I am very seriously looking at an

endorsement for Mitt Romney

"Mitt Romney is an extremely smart guy"

and he knows long division w/remainders

Have A Great Week!

Hey Geraldo...Hoodies don't kill people

noreply@blogger.com (Bear Hug) — Tue, 27 Mar 2012 22:24:00 +0000

“I think the hoodie is as much responsible for

Trayvon Martin’s death as George Zimmerman was.”

Politico
By MJ Lee
3/27/12

Geraldo Rivera is apologizing for his “hoodie” remarks about Trayvon Martin that touched off a media firestorm last week, saying, “I have obscured the main point that someone shot and killed an unarmed teenager.”

“I apologize to anyone offended by what one prominent black conservative called my ‘very practical and potentially life-saving campaign urging black and Hispanic parents not to let their children go around wearing hoodies,’” Rivera said in an email to POLITICO Tuesday, citing a piece in the National Review penned by Thomas Sowell.

Rivera said that “by putting responsibility on what kids wear instead of how people react to them I have obscured the main point that someone shot and killed an unarmed teenager,” and that he was offering a “sincere and heartfelt apology” to anyone he may have offended in his “crusade to warn minority families of the danger to their young sons inherent in gangsta style clothing; like hoodies.” Geraldo: I apologize for being clueless

The Daily Show's Senior Poverty Correspondent Takes on Newt Gingrich's Approach to Poverty

noreply@blogger.com (Bear Hug) — Fri, 16 Dec 2011 00:14:00 +0000

Jon Stewart's Larry Wilmore, (Senior Black Correspondent), takes on a new role in this clip as Senior Poverty Correspondent and offers a humorous perspective on Newt Gingrich’s approach to poverty.

The Daily Show with Jon Stewart
Get More: Daily Show Full Episodes,Political Humor & Satire Blog,The Daily Show on Facebook

76% of Registered Voters Say Most Members of Congress Do Not Desrve Re-election (except for their representative)

noreply@blogger.com (Bear Hug) — Sat, 10 Dec 2011 19:48:00 +0000

A substantial majority of Republican (75%), independent (82%), and Democratic (68%) voters agree that most members of Congress do not deserve re-election -- a sign of rare consensus about the legislative body in which both parties currently hold a leadership stake.

But Yet, 53% Say Their Representative

Deserves to be Re-elected

Gallup
By: Frank Newport
12/9/2012

PRINCETON, NJ -- About three-quarters of registered voters (76%) say most members of Congress do not deserve re-election, the highest such percentage Gallup has measured in its 19-year history of asking this question. The 20% who say most members deserve to be re-elected is also a record low, by one percentage point.

Majority Would Cast a "Yea" Vote

for Their Own Member of Congress

As has historically been the case, voters are much more positive about the U.S. representative from their own congressional district than they are about "most members of Congress," with 53% saying their representative deserves to be re-elected, while 39% hold the opposite view.

Jon Stewart on Donald Trump: Da Best Debate Guy Ever

noreply@blogger.com (Bear Hug) — Sat, 10 Dec 2011 19:32:00 +0000

Jon Stewart on Donald Trump moderating a Republican Presidential candidate debate. If Donald does not like the candidates responses, he might run for President. As if our political system was not already a mockery.

The Daily Show with Jon Stewart
Get More: Daily Show Full Episodes,Political Humor & Satire Blog,The Daily Show on Facebook

Macho UC Davis Police Show Their Small Town Style By Pepper Spraying Peaceful Protestors

noreply@blogger.com (Bear Hug) — Sat, 19 Nov 2011 20:27:00 +0000

Welcome to Davis, California

Davis is noted for its desirable quality of life, its seeming small town atmosphere, and an emphasis on parks and open spaces.

Davis is also known for its innovation in all aspects of community life as a leader in fostering and implementing non-traditional approaches to traditional problems. Known as an environmentally aware and socially innovative city...

UC Davis Police Fostering Non-Traditional Approaches

to Traditional Problems

Our continuing commitment to the delivery of professional, responsive, and fair police services is our pledge as part of the entire City of Davis government team's mission to provide sustainable neighborhoods and community.

Hypocrisy (Greg Hunter) "I AM NOT MOVING"

noreply@blogger.com (Bear Hug) — Wed, 09 Nov 2011 00:30:00 +0000

Welcome to U.S. Hypocricy

At It's ~~Finest~~ Worst

Much thanks to Greg Hunter
USA Watchdog
11/8/11

Haven’t heard much about Occupy Wall Street (OWS) lately, but it is still going on. The official premise is to protest greed and corruption on Wall Street. Unofficially, I think it is a bunch of people who have awoken to the fact they have been financially screwed. Yes, I know the Communist party, Nazi party and unions are all trying to hijack and latch onto this movement, but I think, at its heart, it’s much more than that. It’s about not having a fair and level playing field for everyone to play on. Harvard Professor Elizabeth Warren summed it up perfectly when she said, “We rescued at the top and told the bottom to fin for itself.” OWS would have never started if we had let the banks fail, protected only the depositors and fired and prosecuted some big bankers. Instead, we continue to bail them out, and top bankers continue to collect big bonuses for the mess they caused. On top of that, our own government officials and financial watchdogs allow phony accounting to make the banks looks solvent.

The video you are about to see is titled “I Am Not Moving,” but I think is should be called “Hypocrisy.” It has gotten nearly a million You Tube views and is an interesting and poignant piece of work. Both Republicans and Democrats should take notice. I do not believe in everything the OWS movement stands for, but I fully support their right to peacefully protest and exercise their First Amendment right granted under the U.S Constitution. Enjoy the video below:

Congress Approval Rating ONLY 5 Points Higher than Anthony Weiner's Sex Texting Scandal

noreply@blogger.com (Bear Hug) — Wed, 12 Oct 2011 22:42:00 +0000

...and that I will well and faithfully discharge

the duties of the office on which I am about to enter:

So help me God.

Even at his lowest point, George Bush was 54% better than you!

In November 2008, just before the presidential election, only 20 percent approved of the job George Bush was doing as president - the lowest of any president since Gallup began asking the question in 1938.

In a recent poll, Anthony Weiner had an abysmal 8-percent approval rating among registered voters.

Gallup
By Lydia Saad
October 12, 2011

PRINCETON, NJ -- The percentage of Americans who approve of the job Congress is doing returned to 13% in October, matching the all-time Gallup low on this measure, first recorded in December 2010 and repeated in August.

Congress' approval has been low all year, registering below 20% each month since June. The latest results are based on a Gallup poll conducted Oct. 6-9.

It's Time To Focus on the Grandchildren!

You've Had Your Time and You Blew It.

Behind the recent rock-bottom ratings is subpar approval from all three party groups. Republicans' and independents' approval of Congress in 2011 has consistently been below 25%, and more often below 20%. After averaging 24% from January through July, Democrats' approval fell sharply in August, to 15%, and has remained lower than that since.

Currently, Republicans' and Democrats' approval of Congress is identical, at 14%, similar to the 13% among independents.

Older Americans are even less favorable toward Congress than the public at large. Eight percent of those 55 and older approved of Congress in October, similar to their single-digit ratings of Congress since July. Approval is not much higher among middle-aged adults, but rises to 21% among those 18 to 34. Young adults have been more supportive of Congress this year than older age groups, similar to their relatively high approval of President Barack Obama. This is consistent with previous Gallup research showing a long-term inverse relationship between congressional approval and age.

These age patterns may be even more pronounced today than historically, and could be relevant to congressional race outcomes if they hold through next year's elections, because older Americans are typically more likely to vote.

Herman Cain has it all figured out; the loser unemployed are to blame

noreply@blogger.com (Bear Hug) — Sat, 08 Oct 2011 18:50:00 +0000

“Don’t blame Wall Street,” Cain told The Wall Street Journal this week. ”Don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself!”

"I don't have facts to back this up, but I happen to believe that these demonstrations are planned and orchestrated to distract from the failed policies of the Obama administration."

Pillsbury appointed Cain as President and CEO of Godfather's Pizza. Aiming to cut costs, Cain, over a 14-month period, reduced the company from 911 stores to 420. As a result of his efforts, Godfather's Pizza became profitable. In a leveraged buyout in 1988, Cain, Executive Vice-President and COO Ronald B. Gartlan and a group of investors, bought Godfather's from Pillsbury. Cain continued as CEO until 1996, when he resigned.

"Don't blame Wall Street or the Big Banks for losing your Godfather's Pizza job, blame yourself."

"It is not someone’s fault if they succeeded, it is someone’s fault if they failed." Look at me I cut costs and fire people, I succeeded.

Take the Eric Cantor, "What is a Mob Test?"

noreply@blogger.com (Bear Hug) — Sat, 08 Oct 2011 16:04:00 +0000

Washington Post
By Jonathan Capehart
October 7, 2011

"If you read the newspapers today, I, for one, am increasingly concerned about the growing mobs occupying Wall Street and the other cities across the country. And believe it or not, some in this town, have actually condoned the pitting of Americans against Americans. But you sent us here to fight for you and all Americans."

According to Mr. Cantor ($7.8 mil net worth), a mob is...

"Pitting Americans against Americans"

"you sent us here to fight for you and all Americans."

"concerned about the growing mobs "

"Tea Party is an organic movement"

Four Biggest Banks Have a 50 to 1 Leverage and $235 TRILLION Exposure & Who Cares About the Grandkids...

noreply@blogger.com (Bear Hug) — Tue, 04 Oct 2011 01:08:00 +0000

Okay, like we realy care about about the grandkids...

USA Watchdog
By Greg Hunter
October 3, 2011

I keep hammering away at the fact the Fed doled out $16 trillion in the wake of the credit crisis of 2008. This is an enormous sum that is greater than the all goods and services produced in the U.S. in a single year.

Domestic banks and companies got the money, right along with foreign banks and companies. In effect, the Federal Reserve bailed out the world financial system. Now, we are right back to square one facing another financial meltdown with European banks and sovereign debt. If the Fed spent $16 trillion, why in the heck is this problem not fixed and why isn’t the world economy taking off like a rocket?” The simple answer is it wasn’t enough money.

The Bank of International Settlements pegs the total world over-the-counter (OTC) derivative exposure at around $600 trillion, but many experts say the real figure is more than twice that amount. No matter which figure you use, it is a gargantuan sum. OTC derivatives are an unregulated dark pool of money with no public market.

These are basically debt bets between two entities on things such as credit risk, currencies, interest rates and commodities. According to the latest report from the Comptroller of the Currency, just four U.S. banks have an eye popping $235 trillion of OTC derivative leverage. (Click here for the complete Comptroller of the Currency report.) As a nation, U.S. banks have a total OTC derivative exposure of $250 trillion. So, the fact that just four U.S. banks have this much leverage and risk is astounding! The banks are listed below in order of size and approximate OTC exposure:

JP MORGAN CHASE BANK NA OH $78.1 trillion OTC derivatives
CITIBANK NATIONAL ASSN $56.1 trillion OTC derivatives
BANK OF AMERICA NA NC $53.15 trillion OTC derivatives
GOLDMAN SACHS BANK USA NY$47.7 trillion OTC derivatives

Considering that the total assets of these four banks are a little more than $5 trillion, I see a frightening amount of risk with a total derivative exposure of $235 trillion! This is nearly 50 to 1 leverage.

On top of that, assets such as real estate or mortgage-backed securities can be held on the books at whatever value the banks think they can sell them for in the future. I call this government sanctioned accounting fraud, or mark to fantasy accounting. Who knows what the true value of the banks “assets” really are. Leverage Continued

81% of Americans Would Throw Congress Overboard

noreply@blogger.com (Bear Hug) — Tue, 27 Sep 2011 17:57:00 +0000

Record-high 81% of Americans are
dissatisfied with the way the country
is being governed

16 days since returning from their August 8th to

September 5th "recess," Bipartisan Bickering continues

as they prep for their recess cocoon September 26th to

October 5th...oh, by the way, they will be on recess again from

Ocotber 17th to Ocotber 23rd.

This is "representation" at a $174,000 annual salary...

Gallup
By Lydia Saad
September 26, 2011

PRINCETON, NJ -- A record-high 81% of Americans are dissatisfied with the way the country is being governed, adding to negativity that has been building over the past 10 years.

Majorities of Democrats (65%) and Republicans (92%) are dissatisfied with the nation's governance. This perhaps reflects the shared political power arrangement in the nation's capital, with Democrats controlling the White House and U.S. Senate, and Republicans controlling the House of Representatives. Partisans on both sides can thus find fault with government without necessarily blaming their own party.

The findings are from Gallup's annual Governance survey, updated Sept. 8-11, 2011. The same poll shows record or near-record criticism of Congress, elected officials, government handling of domestic problems, the scope of government power, and government waste of tax dollars.

Key Findings:

82% of Americans disapprove of the way Congress is handling its job.
69% say they have little or no confidence in the legislative branch of government, an all-time high and up from 63% in 2010.
57% have little or no confidence in the federal government to solve domestic problems, exceeding the previous high of 53% recorded in 2010 and well exceeding the 43% who have little or no confidence in the government to solve international problems.
53% have little or no confidence in the men and women who seek or hold elected office.
Americans believe, on average, that the federal government wastes 51 cents of every tax dollar, similar to a year ago, but up significantly from 46 cents a decade ago and from an average 43 cents three decades ago.
49% of Americans believe the federal government has become so large and powerful that it poses an immediate threat to the rights and freedoms of ordinary citizens. In 2003, less than a third (30%) believed this.

Continue Reading and More Charts

Hilton Hotels Clarifies the $16 Muffins

noreply@blogger.com (Bear Hug) — Fri, 23 Sep 2011 21:36:00 +0000

It's okay America, DOJ Spent $121 MILLION During

1,832 Conferences in 2008 and 2009...it was a Buffet

at an average of $66,000 per conference...it's okay.

Washington Post
By Ed O'Keefe
Updated 9/23/11

Washington Post's original report on this subject quoted from the publicly released inspector general report that said conference organizers served 250 muffins costing a total of $4,200, or $16.80 per muffin at a Hilton-owned hotel. The report also repeatedly referred to “$16 muffins.”

In a statement issued Thursday night, Hilton Hotels — one of the hotel chains singled out in the inspector general report, defended and explained its pricing policies:

“Hilton has a long standing practice of working with government agencies to plan meetings and events that fall within their budgets. Usually provided by the agencies themselves, these budgets are reflective of the pricing structure of the destination, local taxes, gratuities and other fees. Hotel teams tailor these events to provide maximum value and ensure the best experience possible. Dining receipts are often abbreviated and do not reflect the full pre-contracted menu and service provided, as is the case with recent media reports of breakfast items approved for some government meetings. In Washington, the contracted breakfast included fresh fruit, coffee, juice, muffins, tax and gratuity, for an inclusive price of $16 per person. At each hotel, menu pricing structures are derived by a comprehensive review of the competitive local market. Additionally, hotels typically offer guest rooms at per diem rates established by the government.”

Dept. of Justice Munches on $16 Muffins While 22% of our Children Live the Life of Poverty

noreply@blogger.com (Bear Hug) — Wed, 21 Sep 2011 23:13:00 +0000

Oh the Disgusting and Pathetic Irony, Department of JUSTICE Spends $16 on Muffins While 22% of U.S. Children Live in Poverty. Do you think anyone in the DOJ thought about our children and grandchildren as they chowed down their muffin and sipped $8 coffee...did I mention pathetic?

Reuters
By JoAnne Allen
September 21, 2011

"We found the Department (of Justice) spent $16 on each of the 250 muffins served at an August 2009 legal conference in Washington," said a DOJ Office of Inspector General report released on Tuesday.

The DOJ spent $121 million on conferences in fiscal 2008 and 2009, which exceeded its own spending limits and appeared to be extravagant and wasteful, according to the report that examined 10 conferences held during that period.

The review turned up the expensive muffins, which came from the Capital Hilton Hotel just blocks from the White House, as well as cookies and brownies that cost almost $10 each.

The department spent $32 per person on snacks of Cracker Jack, popcorn, and candy bars and coffee that cost $8.24 per cup at another conference, the report said.

The DOJ also spent nearly $600,000 for event planning services for five conferences, the document said.

A Justice Department spokeswoman said most of the gathering were held when there were no strict limits on food and beverage costs, adding the DOJ had taken steps since 2009 "to ensure that these problems do not occur again."

Word of the agency's extravagant spending drew a swift response from Capitol Hill.

Senator Chuck Grassley, the senior Republican on the Senate Judiciary Committee which has oversight of the Justice Department, said the report was a blueprint for the first cuts that should be made by the "super committee" searching for at least $1.2 trillion in savings.

"Sixteen dollar muffins and $600,000 for event planning services are what make Americans cynical about government and why they are demanding change," Grassley said in a statement. "People are outraged, and rightly so."

As the U.S. government grapples

to find ways to trim the bloated

federal deficit, a new report suggests

officials might start with cutting out

$16 muffins and $10 cookies.

GM Throws Entry Level Workers a Bone...$16 per hour versus $14 (no more food stamps at $16)

noreply@blogger.com (Bear Hug) — Sat, 17 Sep 2011 22:51:00 +0000

Starting pay will increase to about $16

an hour from $14 and rise to about $19

an hour from a previous maximum of $16...

WOW...at $16 per hour, one only needs to

figure out how to work 562,500 hours in a

year to equal CEO Dan Akerson's $9 mil

compensation package. That's progress, as

before the raise, one needed to work

642,857 hours...If Mr. Akerson worked

24/7 for an entire year, his hourly rate

is $1,027.

Bloomberg
By David Welch
September 17, 2011

General Motors will increase entry-level pay by $2 to $3 an hour as part of a tentative agreement on a new four-year contract with the United Auto Workers, said two people familiar with the accord.

Starting pay will increase to about $16 an hour from $14 and rise to about $19 an hour from a previous maximum of $16, said the people who asked not to be identified disclosing details before they have been presented to union members for ratification. UAW President Bob King had said getting those workers a middle-class lifestyle was his highest priority.

“This is a wage gain in an economy that is cratering in some places,” Harley Shaiken, a labor professor at the University of California at Berkeley, said in a telephone interview today. “It’s an important symbol.”

GM will also pay a record $5,000 signing bonus if a majority of the 48,500 hourly workers vote to ratify the accord, the people said. That would cost the Detroit-based automaker $242.5 million. The accord also includes new jobs and better profit-sharing, the union said. Ratification votes will probably be held within 10 days, GM said.

The new entry-level wage will get workers close to the average manufacturing wage in the U.S., Shaiken said. In August, it was $18.90 an hour, according to the Commerce Department.

Continue Reading

Ron Paul's (unofficial) Commercial (Greg Hunter)

noreply@blogger.com (Bear Hug) — Wed, 14 Sep 2011 12:46:00 +0000

USA Watchdog
By Greg Hunter
September 13, 2011

This is a take-off on a commercial produced last November by Citizens Against Government Waste. It was so controversial that major networks would not air it. In this version, Congressman Ron Paul is inserted. It is totally unofficial and not produced by the Paul campaign, but it is just as powerful as the original version. I thought this would be fun to watch in now that the second Republican debate is behind us.

Here’s part of the write-up on the original commercial: “A new television ad about the U.S. national debt produced by Citizens Against Government Waste has been deemed “too controversial” by major networks including ABC, A and E and The History Channel and will not be shown on those channels. The commercial is a homage to a 1986 ad that was entitled “The Deficit Trials” that was also banned by the major networks. Apparently telling the truth about the national debt is a little too “hot” for the major networks to handle. But perhaps it is time to tell the American people the truth.”

9/11 Took Young Boy's Grandfather...and Friend (NPR)

noreply@blogger.com (Bear Hug) — Sun, 11 Sep 2011 22:22:00 +0000

Grandpas hold our tiny hands for just a little while

but our hearts forever

"I love you," Frankie said,

"and there's no other grandfather

I'd rather see than you."

NPR
Original Broadcast on 9/5/2008
Re-broadcast 9/11/11
Listen and Then Bear Hug Your Grandchildren

For Frankie DeVito, his grandfather was a favorite playmate and companion. But Bill Steckman, who worked in the World Trade Center, didn't come home after Sept. 11, 2001. Frankie, now 10, talks with his mother about that day — and how his grandfather remains with him.

"He always used to be in the garage fixing up things with cousin Mikey," Frankie told his mother, Diana.

"And he always promised to take me to work once — but that's not going to happen."

Asked about that day, Frankie said that he recalls seeing his mother upset. Something had happened to his grandfather, he was told. And the family was going to their grandparents' house.

"I remember that Mikey told me that planes crashed, and he wasn't coming back," Frankie said.

In the weeks that followed, being with the rest of his family made him feel better, Frankie said — and so did pretending his grandfather was with him in his room.

He can still feel that presence, he said.

"Being in certain places, when I'm at a happy time, just somewhere in my mind, he won't get out of there. He's just stuck in my mind. And that makes me a little sadder, where I am."

He still dreams of his grandfather, Frankie said — dreams in which the whole family is together again. And he knows what he would say to his grandfather if he could speak to him.

"I love you," Frankie said, "and there's no other grandfather I'd rather see than you."

Produced for Morning Edition by Vanara Taing with Lizzie Jacobs. The senior producer for StoryCorps is Michael Garofalo.

Too Rich, Too Poor, Too Bad (Esther Cepeda)

noreply@blogger.com (Bear Hug) — Sun, 11 Sep 2011 14:12:00 +0000

...let's start by agreeing that someone

can own a DVD player and

still go hungry at night.

Denver Post
By Esther J. Cepeda
September 11, 2011

Joblessness, the general economic malaise and a never-ending stream of depressing statistics — the number of people in poverty, the millions of dollars that corporate CEOs are being paid in bonuses or severance — have made 2011 the year when it became OK to hate both the rich and the poor.

Look at comment boards on news websites or social media networks: Accompanying reports predicting we're in for a long slog of continued economic doldrums are heated barbs personifying both the wealthy and the impoverished as greedy, entitled forces of evil that are ruining America.

It's not surprising, really — when people feel vulnerable, the natural response is to lash out.

"There have been other times when there were huge gulfs between the rich and the poor, such as during the Gilded Age, but I think the disparity between rich and poor now may be even worse," said Phil DeVol, a consultant with aha! Process Inc., a publishing and training company that educates organizations such as schools and municipalities about poverty and class issues.

"The rhetoric out there is probably worse than I've ever seen it, and there is a lack of reasonable middle-ground conversations. So when the talk-radio folks and the cable-TV programs and the institutes who churn out information create narratives, it creates extreme mental models."

Extreme, indeed. Though the national conversation has finally "pivoted" to job-creation efforts, it was only a few weeks ago that Warren Buffett was wagging his finger at "coddled" millionaires and billionaires to pay more taxes. And Congress will soon be back on its government-shrinking crusade, pointing to the undeserving poor — who need government-subsidized health care or food assistance but dare have access to an Xbox or air conditioning — as examples of how government largesse has run amok.

In July, the Heritage Foundation, a conservative think tank, put out a white paper — "Air Conditioning, Cable TV, and an Xbox: What Is Poverty in the United States Today?" — ostensibly aimed at ensuring that "exaggeration and misinformation" don't hamper the development of well-targeted, effective programs to reduce poverty.

"The actual standard of living among America's poor is far higher than the public imagines and . . . in fact, most of the persons whom the government defines as 'in poverty' are not poor in any ordinary sense of the term," the report reads. "The home of the typical poor family was not overcrowded and was in good repair. In fact, the typical poor American had more living space than the average European."

Do not believe, the report warns us, that the worst-case-poverty scenarios presented in the media reflect the average poor person's experience. Most poor people aren't destitute; they're better off than you'd think. Plus, those overblown official U.S. poverty numbers make us look bad geopolitically — the Chinese government uses these "misleading" Census Bureau poverty reports to condemn the U.S. government for human rights violations.

Give the authors credit for including in their analysis the fact that new poverty resulting from the Great Recession will be largely due to working-class families losing their jobs. Obviously, they wouldn't necessarily "dispose of their normal household conveniences in those circumstances." So if you've been out of work for two years and still have a roof over your head, and an air-conditioning unit, maybe you're not such a drag on society.

But implying that people who are not homeless, or close to it, are undeserving of support and certainly undeserving of sympathy is a sure recipe for bad policy.

As DeVol told me, figuring out how public and private entities will work together to help the poor in our new age of austerity will have to center on "coming together across class lines, developing working relationships with mutual respect, and making decisions about our future, together."

For that we need to drop the easy stereotypes and extend understanding across income brackets. Not all rich people are selfish robber barons any more than all poor people are a bottomless drain on society. But that's a tall order, so let's start by agreeing that someone can own a DVD player and still go hungry at night.

Obama Directs EPA to Hold Off On Air Quality Until After Election...Grandchildren thrown under the bus again...

noreply@blogger.com (Bear Hug) — Fri, 02 Sep 2011 21:03:00 +0000

Obama said he has asked the agency

to wait until 2013—you know,

after the next election—to improve the standard.

Mother Jones
By Kate Sheppard
September 2, 2011

On Friday, in a move that shocked enviros and public-health advocates, President Obama asked the Environmental Protection Agency to withdraw its proposal to tighten a key air-quality standard. The request, Obama said, is part of the administration's efforts to reduce "regulatory burdens and regulatory uncertainty."

The EPA has been at work on new rules on ozone pollution, better known as smog, since September 2009. The agency rolled out new, tougher draft standards in January 2010, only to have the release of the final rules repeatedly delayed. In a statement, Obama said he has asked the agency to wait until 2013—you know, after the next election—to improve the standard.

The decision to single out this rule is significant. Back in 2008, the Bush administration EPA issued smog rules that called for limits of 75 parts per billion, which were weaker than those that the agency's own scientists said was necessary to protect human health. Improving the standard has been a top priority for environmental and public-health experts, so when the EPA said in January 2010 that it was considering lowering the limit to between 60 and 70 parts per billion, those groups were cheering.

According to the American Lung Association, the weaker standard means that as many as 186 million Americans are currently breathing in unhealthy levels of smog. The EPA's own figures are even more shocking. If the Obama administration set the lower standard of 60 parts per billion, it would prevent 4,000 to 12,000 premature deaths a year by 2020. Even the higher standard of 70 parts per billion would save between 1,500 and 4,300 lives per year. Improved air quality would bring down the number of deaths and hospitalizations every year due to asthma, bronchitis, and other heart and lung conditions.

The EPA also noted that while compliance with the new rule would cost polluters between $19 billion and $90 billion a year by 2020, the benefits to human health will be worth between $13 billion and $100 billion every year.

EPA administrator Lisa Jackson issued a terse statement on Friday morning, citing other major improvements that the administration has made on clean air and promising to "revisit the ozone standard." And the White House circulated a blog post from Deputy Assistant for Energy and Climate Change Heather Zichal touting all the other things it has done on air quality.

But environmental and public-health groups are, as you might guess, flabbergasted at Obama's announcement. "This is a huge win for corporate polluters and huge loss for public health," said Gene Karpinski, president of the League of Conservation Voters, in a statement. The statements from pretty much every other group have expressed similar outrage.

The American Lung Association filed suit against the EPA following the weak Bush standards but dropped it after the Obama administration said it was going to reconsider. The group issued a statement on Friday signaling that it will revive the suit now that the Obama administration has signaled that it is not going to improve the standard, which is a violation of the Clean Air Act, the group says.

My two cents: I don't think it's a coincidence that the announcement came on day when the Labor Department released the worst jobs report in 11 months. The move certainly plays right into the "jobs vs. the environment" frame that the opponents of any and all regulations have constructed. Worse, though, is that it feeds the idea that it's perfectly okay for the administration to ignore the advice of agency scientists.

It's also not clear whom Obama thinks he's going to win over with this. I'm pretty sure this won't send the American Petroleum Institute or the Chamber of Commerce rushing to donate to his reelection bid, or make Republicans start saying nice things about him.

Jay Carney on Obama's Job Speech...The Economy Matters...The American People Matter...I Can Assure You He Will Be Done Before Kickoff

noreply@blogger.com (Bear Hug) — Thu, 01 Sep 2011 21:38:00 +0000

"The sideshows don't matter," Carney said.

"The economy matters.

The American people matter. Jobs matter."

Hey Jay, on behalf of all grandchildren, grandpa

wants to know just how much jobs for the next

generation matter compared to the

NFL season opener?

"I can assure all you football fans

that he will be completed before kick-off,"

USA Today
By David Jackson
September 1, 2011

We have a date for President Obama's speech on joblessness -- Thursday, Sept. 8.

What we don't have is a specific time -- though we know he will be done by 8:30 p.m., which happens to be the start time for the season-opening pro football game between the Green Bay Packers and the New Orleans Saints.

"I can assure all you football fans that he will be completed before kick-off," White House spokesman Jay Carney said.

Carney said Obama and aides are looking forward to speaking directly to Congress, and not rehashing the remarkable political flap that preceded the scheduling of the speech.

Obama initially asked to speak to a joint session of Congress on Wednesday. Some Republicans objected, noting their presidential candidates have a debate that same night; House Speaker John Boehner, R-Ohio, suggested the president move the speech to Thursday, citing logistical concerns.

After talks between the White House and Boehner's office, Obama opted for Thursday.
"The sideshows don't matter," Carney said. "The economy matters. The American people matter. Jobs matter."

"It is irrelevant," Carney later said. "It really is."

It also didn't bother the president, Carney said.

"I spent a great deal of time with him this morning and it never came up," Carney said. "Honestly."

Carney said Obama wanted to speak to Congress about about as soon as lawmakers got back from August recess. "Wednesday seemed to be the best option," he said. "When that seemed to be a problem, Thursday was fine with us."

The White House has long been mindful that Thursday night also features the season opener for the National Football League, New Orleans at Green Bay.

When a reporter asked Carney if the speech will constitute a "pre-game show," the spokesman said: "It means he will have the opportunity to watch the game, like millions of other Americans."

Warren Buffett Consults with Rubber Duckie to Invest $5 bil into Bank of America

noreply@blogger.com (Bear Hug) — Thu, 25 Aug 2011 16:15:00 +0000

Buffett said he conjured the idea while in the bathtub

Rubber Duckie, you're so fine

And I'm lucky that you're mine

ABC News Money
By: Susanna Kim
August 25, 2011

Berkshire Hathaway, led by billionaire Warren Buffet, announced it will buy $5 billion worth of Bank of America shares in a private offering. BofA stock soared though U.S. stock markets were down Thursday morning on yet another gloomy unemployment claims report.

Buffett said he conjured the idea while in the bathtub on Tuesday. He called Brian Moynihan, chief executive officer of Bank of America, on Wednesday, he told CNBC.

Stock of Bank of America, the largest bank in the U.S., rose over 20 percent after the market's open but came down slightly later in the morning. At 10:40 AM eastern time, the stock was up 17 percent to $8.18 a share. The Dow Jones industrial average fell 129 points to 11,193.

Jobless claims climbed by 5,000 to 417,000 in the week ended Aug. 20, the Labor Department reported today. Part of the rise was due to new applications from Verizon, where workers had been striking over a contract deal.

Bank of America stock had plunged 47 percent for the year, as embattled CEO Moynihan has tried to manage its pile of bad mortgages and its exposure to the European debt crisis.

But Warren Buffett praised Monyihan and the bank in a statement.

"Bank of America is a strong, well-led company, and I called Brian to tell him I wanted to invest in it," Berkshire Hathaway chairman and chief executive officer Warren Buffett said in a press release. "I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them. Bank of America is focused on their customers and on serving them well. That's what customers want, and that's the company's strategy." Read more about the rubber duckie investment

U.S. Becomes a Food Stamp Nation While CEO's are Paid More Than in 2007

noreply@blogger.com (Bear Hug) — Thu, 25 Aug 2011 12:54:00 +0000

“But I didn’t know what else to do

and I got to a point where I swallowed

my pride and decided to do

what was best for my daughter.”

Meanwhile, the typical pay package

for the head of a company in the

Standard & Poor's 500 was $9 million in 2010

Capitol Hill Blue
By Krintina Cooke
August 23, 2011

Genna Saucedo supervises cashiers at a Wal-Mart in Pico Rivera, California, but her wages aren’t enough to feed herself and her 12-year-old son.

Saucedo, who earns $9.70 an hour for about 26 hours a week and lives with her mother, is one of the many Americans who survive because of government handouts in what has rapidly become a food stamp nation.

Altogether, there are now almost 46 million people in the United States on food stamps, roughly 15 percent of the population. That’s an increase of 74 percent since 2007, just before the financial crisis and a deep recession led to mass job losses.

At the same time, the cost doubled to reach $68 billion in 2010 — more than a third of the amount the U.S. government received in corporate income tax last year — which means the program has started to attract the attention of some Republican lawmakers looking for ways to cut the nation’s budget deficit.

While there are clearly some cases of abuse by people who claim food stamps but don’t really need them, for many Americans like Saucedo there is little current alternative if they are to put food on the table while paying rent and utility bills.

“It’s kind of sad that even though I’m working that I need to have government assistance. I have asked them to please put me on full-time so I can have benefits,” said the 32-year-old.
She’s worked at Wal-Mart for nine months, and applied for food stamps as soon as her probation ended. She said plenty of her colleagues are in the same situation.

So are her customers. Bill Simon, head of Wal-Mart’s U.S. operations, told a conference call last Tuesday that the company had seen an increase in the number of shoppers relying on government assistance for food.

About forty percent of food stamp recipients are, like Saucedo, in households in which at least one member of the family earns wages. Many more could be eligible: the government estimates one in three who could be on the program are not.

“If they’re working, they often think they can’t get help. But people can’t support their families on $10, $11, $12 an hour jobs, especially when you add transport, clothes, rent.” said Carolyn McLaughlin, executive director of BronxWorks, a social services organization in New York.

The maximum amount a family of four can receive in food stamps is $668 a month. They can only be used to buy food — though not hot food — and for plants and seeds to grow food.

Presidents Bill Clinton, George W. Bush and Barack Obama all made efforts to raise awareness about the program and remove the stigma associated with it.

In 2004, paper coupons were replaced with cards similar to debit cards onto which benefits can be loaded. In 2008 they were renamed Supplemental Nutritional Assistance Program (SNAP) benefits though most people still call them food stamps.

Despite the bipartisan support for the program in the past, some of the recent political rhetoric has food stamp advocates worried.

Presidential hopeful Newt Gingrich last year derided Democrats as “the party of food stamps”. And Republican leaders in the House of Representatives propose changing the program so that the funding is through a “block grant” to the states, rather than allowing it to grow automatically when needed due to an emergency, such as a natural disaster or economic crisis. The rest of the story...

Homeless Pre-School Children Up 43% and yet U.S. Spends $896 mil Blowing Up Libya

noreply@blogger.com (Bear Hug) — Wed, 24 Aug 2011 12:56:00 +0000

The number of homeless pre-school aged children increased 43% in the last two years. The number of homeless children in public schools increased 41 percent between the 2006-7 and 2008-9 school years. Meanwhile, the U.S. has spent $896 million bombing Libya and has pledged $25 million of aid to Libya once we are done blowing them up.

August 22, 2011
ABC News' Luis Martinez (@LMartinezABC) reports: The cost of U.S. military intervention in Libya has cost American taxpayers an estimated $896 million through July 31, the Pentagon said today.

The price tag includes the amounts for daily military operations, munitions used in the operation and humanitarian assistance for the Libyan people.

The U.S. has also promised $25 million in non-lethal aid to the Libyan Transitional National Council, half of which the Defense Department has already on MRE’s (military lingo for Meals, Ready to Eat).

The military delivered 120,000 Halal MRE’s to Benghazi in May and a second shipment that included medical supplies, boots, tents, uniforms, and personal protective gear in June.
While Libyan leader Moammar Gadhafi appears on the way out, NATO says flight missions over Tripoli will continue, with the U.S. playing a role in helping to keep a tight window over the area that’s been in effect for weeks.

Over the past 12 days, U.S. planes have flown 391 sorties for a total of 5,316 since April 1, according to figures provided by the Defense Department. That total includes 1,210 airstrike missions over the same three and a half month period. The U.S. has also conducted 101 Predator drone strike missions in Libya.

A U.S. official credited NATO flight cover over the past many months with allowing the Libyan rebels enough time to eventually regroup and begin their pushes.

One significant offset to the cost of U.S. involvement in the flights worth noting is the sale of military equipment to allies also involved in the cause. Pentagon officials say the sale of ammunition, replacement parts, fuel, and technical assistance to allies since March has totaled $221.9 million.