Maybe this is why the chic left thinks The Beloved Leader deserves the Nobel Peace Prize.
If he does not act decisively to push back against the monsters of the Taliban, it will be decades before there is a chance to confront the New Dark Ages the Muslim fundamentalists have planned for much of the world. Or, worse, we'll have to confront it much more up-close and personal, and at incredibly higher cost.
And we just might lose, you know.
And, for some perverse reason, that's ok with the chic left...
Friday, October 9, 2009
The 'Me' Generation and Its Money
John Mason at Seeking Alpha offers good long-term insight on the relationship between governmental behaviour and economic (and societal) outcomes. The last three paragraphs are pretty chilling, if you are an American who loves freedom. His article is about the slow, steady, and inexorable destruction of the dollar.
He pegs the problem early on:
'The underlying problem is the fiscal irresponsibility of the United States government, with the exception of one administration, beginning in the 1960s.'
The exception he speaks of is in the 1990's, when after two years of Clinton, the electorate swept in a freshman class that was intent on restraining the growth and expenditure of the federal government.
At least, they did for a while. Then they succumbed to both the seductions of office, the outrageous behaviour of Bill Clinton(who should have resigned, by golly, out of simple decency), the blandishments of the bankers, and the myth that easy money would solve all.
But enough about them.
We, ourselves, are the problem. There was a sea-change in the culture in the 1960's, was there not?
We, the boomers, decided to throw off the shackles of our parents' restraints, and closed our ears to the warnings that busts follow booms, and all that 'wheels grind slowly, but grind they do' stuff. We were going to 'make all things new' ourselves, thank you very much, sans Marx or Jesus(to quote that book title from the 70's).
We decided to become consumers! And we were very, very good at it.
And Mr. Denninger shows us what resulted.
Don't skip over this link. Print it, frame it, and hang it in your children's nursery.
Ethics shape the culture. Culture shapes the economy.
(Disclosure: A position in UDN, and continuing to accumulate steadily.)
He pegs the problem early on:
'The underlying problem is the fiscal irresponsibility of the United States government, with the exception of one administration, beginning in the 1960s.'
The exception he speaks of is in the 1990's, when after two years of Clinton, the electorate swept in a freshman class that was intent on restraining the growth and expenditure of the federal government.
At least, they did for a while. Then they succumbed to both the seductions of office, the outrageous behaviour of Bill Clinton(who should have resigned, by golly, out of simple decency), the blandishments of the bankers, and the myth that easy money would solve all.
But enough about them.
We, ourselves, are the problem. There was a sea-change in the culture in the 1960's, was there not?
We, the boomers, decided to throw off the shackles of our parents' restraints, and closed our ears to the warnings that busts follow booms, and all that 'wheels grind slowly, but grind they do' stuff. We were going to 'make all things new' ourselves, thank you very much, sans Marx or Jesus(to quote that book title from the 70's).
We decided to become consumers! And we were very, very good at it.
And Mr. Denninger shows us what resulted.
Don't skip over this link. Print it, frame it, and hang it in your children's nursery.
Ethics shape the culture. Culture shapes the economy.
(Disclosure: A position in UDN, and continuing to accumulate steadily.)
Wednesday, October 7, 2009
Golly-Gosh, Beaver! If You Shoot Back, the Pirates Run Away!
This nugget from the BBC...
Seems some intrepid Somali pirates targeted a ship to hijack, only to find it was an armed French naval vessel.
Untypically of the French, this boat's commander decided to fight back, actually chased the criminals down and captured them!
Golly-Gosh! If you resist a bully, he backs down!
Criminals tend to be cowardly and lazy!
Stop the presses! This is news!
Now, to see if the French officer is court-martialed for defending his ship...
Seems some intrepid Somali pirates targeted a ship to hijack, only to find it was an armed French naval vessel.
Untypically of the French, this boat's commander decided to fight back, actually chased the criminals down and captured them!
Golly-Gosh! If you resist a bully, he backs down!
Criminals tend to be cowardly and lazy!
Stop the presses! This is news!
Now, to see if the French officer is court-martialed for defending his ship...
Monday, October 5, 2009
Pigs DO Fly, After All!
Three muted and belated cheers for Robert Reich.
Bill Clinton's former Labor Secretary once again defies the Conventional Wisdom of the Obama Administration (spend more on your buddies on Wall Street, political muscle groups like ACORN, and raise taxes on people who actually produce stuff).
First, unlike Obama and Geither, he understands we really really really have a problem on our hands. Timmy can assure us we are in a recovery, and the Fed can print and pump money to Wall Street all it wants.
The real, genuine, on-the-ground-sans-the-Democrat's-BS unemployment rate is about 20%.
Twenty percent. That's one in five.
(That's not counting all the micro-business contractors and tradesmen who were never on the rolls, like my buddy Ronnie, a small contractor in Tennessee who now travels to work on projects in IOWA, since work here has ground to a halt. And he's grateful for his work in Iowa!)
Reich lists several proposals, including an ominous one to use TARP funds to keep local schools afloat--a most ominous precedent.
But, he hits a home run with another--eliminate the payroll tax for one year on earnings under 20K.
I hear the simultaneous sounds of oinking and wings flapping.
He admits the obvious--the payroll tax is a huge drag on job creation, and on the economy in general.
And, finally, it's time as that idea is discussed, for the Ponzi Scheme of Social Security to be explored.
Of course, this is not likely to happen, as Himself and the Dems are trying to figure out how to federalize health care...with money from where?
A lot of what Reich proposes is wrong-headed, I believe. But he does have the courage to state clearly that things are amiss, and has clearly decided that the Obama Kool-Aid is definitely toxic.
And, what will the White House do about Reich? He was on their transition team, and teaches at UC Berkley! They can't dismiss him as more right-wing AstroTurf, amongst the other names they employ for any who dare disagree.
Oink, oink.
Flutter, flutter.
Tick-tock, Mr. Obama. We're one day closer to November 2010!
Bill Clinton's former Labor Secretary once again defies the Conventional Wisdom of the Obama Administration (spend more on your buddies on Wall Street, political muscle groups like ACORN, and raise taxes on people who actually produce stuff).
First, unlike Obama and Geither, he understands we really really really have a problem on our hands. Timmy can assure us we are in a recovery, and the Fed can print and pump money to Wall Street all it wants.
The real, genuine, on-the-ground-sans-the-Democrat's-BS unemployment rate is about 20%.
Twenty percent. That's one in five.
(That's not counting all the micro-business contractors and tradesmen who were never on the rolls, like my buddy Ronnie, a small contractor in Tennessee who now travels to work on projects in IOWA, since work here has ground to a halt. And he's grateful for his work in Iowa!)
Reich lists several proposals, including an ominous one to use TARP funds to keep local schools afloat--a most ominous precedent.
But, he hits a home run with another--eliminate the payroll tax for one year on earnings under 20K.
I hear the simultaneous sounds of oinking and wings flapping.
He admits the obvious--the payroll tax is a huge drag on job creation, and on the economy in general.
And, finally, it's time as that idea is discussed, for the Ponzi Scheme of Social Security to be explored.
Of course, this is not likely to happen, as Himself and the Dems are trying to figure out how to federalize health care...with money from where?
A lot of what Reich proposes is wrong-headed, I believe. But he does have the courage to state clearly that things are amiss, and has clearly decided that the Obama Kool-Aid is definitely toxic.
And, what will the White House do about Reich? He was on their transition team, and teaches at UC Berkley! They can't dismiss him as more right-wing AstroTurf, amongst the other names they employ for any who dare disagree.
Oink, oink.
Flutter, flutter.
Tick-tock, Mr. Obama. We're one day closer to November 2010!
Sunday, October 4, 2009
Green Shoots Award Nominee--El Sistema
Surfing through the trash on Sunday afternoon TV, I tripped across Ovation TV's broadcast of the documentary El Sistema: Music for a Brighter Future. My bride and I are shed tears of joy watching the teaching, learning, and joy on the faces of the students as they learn. At about 1:40 into the two-hour documentary, the film shows a choir singing John Rutter's Candlelight Carol (translated to Spanish), with another choir of deaf children signing the piece with equal beauty. Utterly breathtaking, in a film filled with extraordinary moments.
The LA Philharmonic's hot new music director, Gustavo Dudamel, is a product of El Sistema. In watching the documentary, it becomes clear that he may be the most public face of the thirty-something year effort, but he is far from the most important accomplishment.
This must be seen to be appreciated. The DVD is scheduled for release this month. We'll be buying multiples for friends, students, and several un-named dolts we know in academia.
What if we could capture that joyful, hopeful, anything-is-possible spirit here? Again.
Moral values shape culture.
The culture shapes the economy.
The LA Philharmonic's hot new music director, Gustavo Dudamel, is a product of El Sistema. In watching the documentary, it becomes clear that he may be the most public face of the thirty-something year effort, but he is far from the most important accomplishment.
This must be seen to be appreciated. The DVD is scheduled for release this month. We'll be buying multiples for friends, students, and several un-named dolts we know in academia.
What if we could capture that joyful, hopeful, anything-is-possible spirit here? Again.
Moral values shape culture.
The culture shapes the economy.
Saturday, October 3, 2009
For The Weekend, A Song Lyric
It is a good thing to be of a 'certain age'--not that old, at least in my own mind, but must make the admission that time has passed. Steely Dan's Hey, Nineteen used to make me chuckle, with its lament of a middle-aged man to a sweet young thing who never heard of Aretha Franklin...now I wince!
For reasons not clear to me, Hal David's lyric Alfie has run through my mind all day. It was written and released in the late 60's, and I remember being moved and troubled by it even then.
Hal David was prescient in so many of his lyrics, subtly jabbing the culture that had already gone morally blind. Add Burt Bacharach's ability to paint lyric with melody, and small masterpieces were created.
So, for those who already know this lyric, indulge me. For so many who never have heard it, I hope it moves you:
For reasons not clear to me, Hal David's lyric Alfie has run through my mind all day. It was written and released in the late 60's, and I remember being moved and troubled by it even then.
Hal David was prescient in so many of his lyrics, subtly jabbing the culture that had already gone morally blind. Add Burt Bacharach's ability to paint lyric with melody, and small masterpieces were created.
So, for those who already know this lyric, indulge me. For so many who never have heard it, I hope it moves you:
Alfie
Lyric by Hal David
What's it all about, Alfie?
Is it just for the moment we live?
What's it all about, when you sort it out, Alfie?
Are we meant to take more than we give;
or are we meant to be kind?
And, if...
Only fools are kind, Alfie;
Then I guess it is wise to be cruel.
And if life belongs only to the strong, Alfie;
What will you lend on an old Golden Rule?
As sure as I believe there's a heaven above, Alfie--
I know there's something much more:
Something even non-believers can believe in...
I believe in love, Alfie
Without true love we just exist, Alfie;
Until you find the love you've missed, you're nothing, Alfie!
When you walk, let your heart lead the way;
And you'll find love any day,
Alfie...
Have a good weekend.
Hug the ones you love a little tighter to you, and let's remember to be grateful for all the blessings we enjoy, and scarcely notice.
Thursday, October 1, 2009
Green Shoots Nominee--Seika Girls High School Wind Ensemble
Sent to me by my bride, a hat tip and much more to her!
This video is eight minutes of inspiration, on all levels.
One question I keep hearing echo through my poor brain is: 'What's possible?' And the answer echoes back: 'Why, anything, if we're willing to work hard enough for it!'
These are adolescent girls, not jaded pros, not even whiz-kid conservatory students. As a musician, I assure you, this piece is wicked hard to perform.
I have a conversation at least monthly with parents, faculty members, students, and it goes like this: 'You tell me that the expectations are just too high, that (fill in the name) can't possibly be expected to practice/study that many hours per week, or meet these standards you tell us are normative. Well, this student's competition in his/her career is not likely sitting in some small college in the US. He or she is in Japan, Hong Kong, Shanghai, Bangalore, Capetown, or some other corner of the world. That young person's family is focused on achievement.'
I'll be showing this video to help illustrate the point.
Green shoots, in unexpected places. If what we see and hear happening here could be translated across the culture---
What's Possible?
Jonah And The Banksters
Matthew Goldstein at Seeking Alpha shares this tidbit of news:
In the second quarter of this year, the notional value of derivatives contracts at JPMorgan Chase (JPM), Goldman Sachs (GS), Bank of America (BAC) and Citigroup (C) increased by $1.92 trillion, to $191 trillion. Shockingly, Citi is responsible for most of that gain from the end of the first quarter.
Overall, the total dollar value of outstanding derivatives transactions at the top 25 U.S. commercial banks was $203 trillion, according to the Office of the Comptroller of the Currency, meaning that the nation’s four biggest banks account for 94 percent of the industry’s total exposure to derivatives.
Now the concentration of derivatives at a handful of banks isn’t new. It’s even to be expected, bank regulators say.
In the second quarter of this year, the notional value of derivatives contracts at JPMorgan Chase (JPM), Goldman Sachs (GS), Bank of America (BAC) and Citigroup (C) increased by $1.92 trillion, to $191 trillion. Shockingly, Citi is responsible for most of that gain from the end of the first quarter.
Overall, the total dollar value of outstanding derivatives transactions at the top 25 U.S. commercial banks was $203 trillion, according to the Office of the Comptroller of the Currency, meaning that the nation’s four biggest banks account for 94 percent of the industry’s total exposure to derivatives.
Now the concentration of derivatives at a handful of banks isn’t new. It’s even to be expected, bank regulators say.
The OCC, in its quarterly derivatives report, routinely notes that the Big Four “have the resources needed to be able to operate this business in a safe and sound manner.” In other words, the biggest banks are best suited to handle all these derivatives contracts because they’ve been doing it for so long.
Well, yes, one could make a breathtakingly stupid statement like that--the OCC, I mean, not Mr. Goldstein--if one lives with the assumption that no matter how reckless the behaviour of these firms, the taxpayer can always be shaken down if something goes awry.
One year ago today, we were being told by The People Who Know About Such Things that massive exposure to derivatives by these huge institutions had nearly brought the world to its knees.
Today, we are told by the same people that all is well and boys will be boys. Let them play in their sandbox. What could possibly go wrong?
I keep thinking, 'My unborn grandchildren will be paying for this...my unborn grandchildren will be paying for this... '
This week, the light dawned on my poor brain: My unborn grandchildren can't vote, or consume, or invest, or do anything to aggrandize the power and wealth of either the politicians or the banksters.
Their unborn grandchildren will inherit wealth, one way or another, so all is fine and good.
Their unborn grandchildren will inherit wealth, one way or another, so all is fine and good.
And, if this world is really all there is--this life in which we work, play, live, die--is really all there is, and then we die and cease to exist...then what should they care about anyone's grandchildren, born or unborn. Those 'unborns' can shift for themselves, thank you very much.
We don't just have an ethical problem in this fair country. At heart, we may have a theological problem. The culture shapes the economy...
The story of Jonah is not about the guy in the belly of the big fish, so much as it is about how the Almighty spared a society that had lost its moral compass. The guy the fish coughed up on the shore had informed them that The End was at hand, unless they changed their ways.
Which they did, for a while.
The Wiki article seems to be well-written, and gives good resources if one is interested. Until well into the 19th Century, the location of the site of this city was unknown, not a trace left behind. The most evocative line in the article is delivered in deadpan academic style: Many unburied skeletons were found by the archaeologists at the site.
Tuesday, September 29, 2009
The Organic Fertilizer Rapidly Approaches An Intersection With The Electrically-Powered Portable Bladed Air-Moving Device
So, here we have news from the FDIC that they plan to assess $45 billion dollars from the banks left standing in order to cover their losses on the banks that have fallen/are about to fall and can't get up.
And the little solvent banks are going raise that cash from where?
New customers and loan business?
Present customers? Assess fees on each account and/or check processed?
Laying off employees?
Closing branches and trying to sell off the buildings? (It took three years for a bank to unload a closed branch locally. Sold or leased it on the cheap to two guys who installed a liquor store in it!)
Where?
Will $45 billion really be enough? Or is this just round one of an ongoing shakedown of the the solvent banks?
I mean, I'm at a loss. This past Friday afternoon, the final Friday of September, in the final hour of business, I was the only customer at my bank. I hung around and gossiped, just to see if it was a fluke of timing. (I was making deposits, sure as shootin' wasn't talking to them about taking on more debt!)
It wasn't a fluke. I was it. The tellers were doing cross-stitch, and looking for tasks to do on behalf of their employer.
And this bank's not on the 'watch list'.
And the little solvent banks are going raise that cash from where?
New customers and loan business?
Present customers? Assess fees on each account and/or check processed?
Laying off employees?
Closing branches and trying to sell off the buildings? (It took three years for a bank to unload a closed branch locally. Sold or leased it on the cheap to two guys who installed a liquor store in it!)
Where?
Will $45 billion really be enough? Or is this just round one of an ongoing shakedown of the the solvent banks?
I mean, I'm at a loss. This past Friday afternoon, the final Friday of September, in the final hour of business, I was the only customer at my bank. I hung around and gossiped, just to see if it was a fluke of timing. (I was making deposits, sure as shootin' wasn't talking to them about taking on more debt!)
It wasn't a fluke. I was it. The tellers were doing cross-stitch, and looking for tasks to do on behalf of their employer.
And this bank's not on the 'watch list'.
Sunday, September 27, 2009
Ruh-Roh!
I am not sophisticated enough in either law or finance to be able to judge this bit of news with any reliability. I hope someone (Sackerson, you there?) might be able to look at this and enlighten further.
A court in Kansas has ruled that MERS, the mortgage clearing-house(I've never heard of it, but what do I know?), which has been the party filing foreclosures on behalf of bondholders, is in reality a straw-man, without standing to foreclose on anyone's house in Kansas.
It seems that a court has ruled that about half of the mortgage market has been run as a criminal enterprise for years, which would invalidate any potential foreclosure proceedings for about, oh, 60 million mortgages. The court ruled that the electronic transfer system used by the private company MERS — a clearing system for mortgages, similar to a depository, that is used for about half the mortgage market — is fundamentally unreliable, and any mortgage sold and/or transferred through MERS can’t be foreclosed upon, at least not in Kansas.
If this means what it seems to mean, then all those mortgages that were sliced-and-diced into mortgage-backed-securities, insured by credit-default-swaps, are now unenforceable, at least in Kansas. Would that mean all those holders of MBS's are left holding the bag, in possession of literally worthless paper?
They would want their money back, wouldn't they? All at once, once the word got out?
I don't know, that's why I'm posing the questions.
Toto, I don't think we're in Kansas anymore...
A court in Kansas has ruled that MERS, the mortgage clearing-house(I've never heard of it, but what do I know?), which has been the party filing foreclosures on behalf of bondholders, is in reality a straw-man, without standing to foreclose on anyone's house in Kansas.
It seems that a court has ruled that about half of the mortgage market has been run as a criminal enterprise for years, which would invalidate any potential foreclosure proceedings for about, oh, 60 million mortgages. The court ruled that the electronic transfer system used by the private company MERS — a clearing system for mortgages, similar to a depository, that is used for about half the mortgage market — is fundamentally unreliable, and any mortgage sold and/or transferred through MERS can’t be foreclosed upon, at least not in Kansas.
If this means what it seems to mean, then all those mortgages that were sliced-and-diced into mortgage-backed-securities, insured by credit-default-swaps, are now unenforceable, at least in Kansas. Would that mean all those holders of MBS's are left holding the bag, in possession of literally worthless paper?
They would want their money back, wouldn't they? All at once, once the word got out?
I don't know, that's why I'm posing the questions.
Toto, I don't think we're in Kansas anymore...
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