Europe: Boycott America (Sept. 28, 2009)

Posted in Boycott Series, Dollar - World's Reserve Currency, Economics, Europe, Kleptocracy on September 28, 2009 by e-commentary.org

How enlightened Europe could get suckered by and sucked into the Great American Meltdown is bewildering.  Those with some distance and perspective should have seen that the American economy was hollow and vacant as early as 2005 if not earlier.  Countries such as Iceland and Ireland – good people all – and cities, towns, and villages throughout Europe largely brought it on themselves because they bought the lies and the poison from America.  The financial products exported from America had to look suspicious at the time.

Europe should boycott America.  Really.  In a rational and purposeful way.  Purchasing and holding dollars may make economic sense in the future.  If so, buy bucks.  The decision may get more problematic when the dollar is no longer the world’s reserve currency.

Holding American bonds may make economic sense in the future.  If so, investigate them with care and acquire them.  Keep in mind that American municipalities and other political subdivisions can file bankruptcy.

However, the financial sector in America is corrupt to the core.  O’Bama is trying to clean up the mess, yet he cannot surmount the entrenched financial community.  Only powerful financial/economic/political market forces will compel change in the American financial markets.  The pressure may need to come from overseas.

Bumper sticker of the week (sported on a red Renault convertible sports car):

USA:  Fool me once, shame on you; fool me twice, shame on me.

Leave a comment »

So Many Words, So Few Ideas (Sept. 21, 2009)

Posted in Bernanke, English Language, Journalism, Recession, Society on September 21, 2009 by e-commentary.org

Too many books published today are distended essays on steroids.  Too many essays are too wordy and not too woody.  Writers are not paid by the word, yet they write as if they were.  Writers should write less; editors should edit more.

Nonetheless, there are far more well-written pieces than one can savor before the candle goes out.

(“The recession is very likely over at this point.”  Ben Bernanke, September 15, 2009 in a speech at the Brookings Institution, one year to the date after Senator McCain proclaimed on September 15, 2008:  “The fundamentals of our economy are sound.”)

Bumper sticker of the week:

The Six-Word Memoir is America’s Haiku

Obituary:

“During his lifetime, he penned over 418 books, 1279 essays, 3065 monographs, . . . received seven Pulitzer Prizes and three Nobel Prizes . . . and is known for one cleverly crafted original phrase propounded in 1985.”

Leave a comment »

The Meltdown Continues, Subtly (Sept. 14, 2009)

Posted in Bailout/Bribe, Bernanke, Economics, Federal Reserve on September 14, 2009 by e-commentary.org

We mark 9/15 tomorrow as the day Lehman Bros. failed.  By then, America had failed.  Senator McCain had proclaimed the fundamentals of the economy to be sound, although they were fundamentally unsound.  A “red-letter day” marks the day when America did something to stay “in the black,” albeit a small step, by not doing something.  Lehman failed and was allowed to go the way of all flesh in a capitalist system; Lehman was allowed to die and file a petition in bankruptcy.  One wonders if Lehman received this “special treatment” because of a personality dispute between its then president Fuld and then Secretary of Treasury Paulson.  America would have been better off with more such personality disputes.

Bribing the perpetrators of other failed financial institutions was not the appropriate strategy to purge the poison in the financial system.  Bush, Paulson and Bernanke should have done nothing prior to and after Lehman.  Only the market could flush the filth out of a broken financial system.

Doing nothing would have had immediate and negative economic and thus political consequences.  Doing something will have much greater and much graver economic consequences for a generation or more.

The appropriate decision is part economic and part moral.  Future (and present, subtly) generations were jettisoned to keep a failed financial system limping along today and to delay the day of reckoning until someone else’s watch.

The Economic Terrorists own Congress and control O’Bama lock, stock and sinker.  There is not much hope of change.

Bumper sticker of the week:

America:  California Writ Large

Leave a comment »

Outsourcing Pensions? (Sept. 7, 2009)

Posted in Pensions on September 7, 2009 by e-commentary.org

The government is outsourcing more traditional government activities to private sector entities that may never pay their pension and health care obligations to their employees.  Outsourcing is alleged to be cheaper, although in the long run it will be much more costly to the country.

Some employers promise a “defined benefit plan” to their employees that promises to pay a certain amount of money on a defined schedule.  This is a traditional retirement program. However, the promise is hollow if there is little or nothing to fund the obligation.  The programs are likely to be underfunded or unfunded because they rely on a growing economy and disciplined investing.  The private sector entities can simply dump the entity (“Fly By Night Government Services, LLC”) into bankruptcy and use section 365 to extinguish any pension and health care obligations without any civil or criminal consequences of any kind whatsoever to the entity or the individual owners.

Most employees and unions oppose a transition to a “defined contribution plan” that provides sums directly to or for the benefit of the employee to be invested by the employee pursuant to a “401(k)” or other program.  The virtue is that the funds are within one’s control; the vice is that the funds are within one’s control.  Only a small number of employees are talented or lucky enough to manage and grow the funds.

Many citizens are likely to discover that there is nothing waiting for them at the “end of the day.”  Trillions in unfunded obligations will overwhelm the Pension Benefit Guaranty Corporation.

[See the “e-ssay” dated April 14, 2008 entitled “Pensions and Other Entitlements:  Pt. 1” and the one dated April 28, 2008 entitled “Pensions and Other Entitlements:  Pt. 2” under the Category “Pensions.”]

Bumper stickers of the week:

“Promises of payment/Are neither food nor raiment”

What is a trophy wife?  A woman with vested Tier I state benefits.

Leave a comment »

Bernanke 2.0 (August 31, 2009)

Posted in Bernanke, Economics, Federal Reserve, Greenspan, Volker on August 31, 2009 by e-commentary.org

Bush’s best appointment is one of O’Bama’s better reappointments.  Bernanke is not the best choice yet is the right choice at this time.  Yet there should be some reservation about and reflection on the entire Federal Reserve scheme.

The Founding Fathers as they are known could not agree on the creation of a central bank.  The issue was at the heart of many early presidential elections.  Every sovereign nation needs a central bank.  The bankers created a central bank in 1913 and filled the vacuum.  America must examine the role of the Federal Reserve and incorporate it into our constitutional system characterized by a separation of powers and accountability to the populace.

The central bank has a history of competent and independent chairmen such as Paul Volker who pursued some harsh policies with painful but necessary consequences without any significant political intervention.

Alan Greenspan, a conservative Republican, acted as the “central planner” of the economy for far too may years with devastating consequences.  At least he has enough integrity and self-awareness to admit some mistakes.  Some thoughtful political intervention was appropriate and necessary during his tenure.

Faith in the Fed. has dissuaded Congress from taking more direct control and dictating policy.  Legislation such as the Humphrey-Hawkins Full Employment Act does set some guidelines and parameters.  However, the Fed cannot and should not attempt to establish full employment.

At this time, Ben Bernanke is determining both “monetary policy” and “fiscal policy.”  Fiscal policy has been and should be the province of Congress.  Monetary policy should focus on price stability.

Who should address these matters?  The politicians.  That should give one pause and yet motivate us to act.

Bumper sticker of the week:

Price stability

Leave a comment »

Cell Phones On The Line Again (August 24, 2009)

Posted in Cell Phones, Health Care on August 24, 2009 by e-commentary.org

Some suggest that implanting a cell phone against the side of one’s head may produce brain tumors in the intermediate run.  Try this.  Place a cell phone next to the computer speakers and dial a call.  The speakers hum like a Geiger counter.  Something does not seem right.  Enough studies are raising concerns.  Will the cell phone enter the pantheon of pernicious products along with lead paint and asbestos brakes?

The remedy is cheap.  Cheap remedies are appealing.  Use an ear piece and keep the cell phone away from the brain.  And all the while you look like a secret agent or an international spy.

Bumper stickers of the week:

A word to the wise; a few words to the less wise

This is your brain on a cell phone

Leave a comment »

Taking Stock (August 17, 2009)

Posted in Society on August 17, 2009 by e-commentary.org

Was it a self-absorbed fête of sex, drugs and rock and roll or a selfless gathering celebrating peace, love and Woodstock?  Perhaps a mix of both.  The celebration could have started with a nod and a moment of silence to acknowledge the discipline and sacrifice of the parents who made all the spare time and change to fund the event possible.  Great and enduring sounds.

There did seem to be some possibility and promise of change and improvement.  Perhaps one had to be young and naïve to believe that humans could change and improve and change and improve society.  However, the stubborn limits that nature fixes for human conduct have not changed or improved.

If time will tell, time has not told an inspiring tale.  The Greatest Generation still seems to be a greater generation.  Both generations have worked together to mire the Republic in the current economic and spiritual maelstrom.

Witnessing the festival from afar was a very small part but a part nonetheless in at least one person’s quest to question and reject the arrogance, hypocrisy, dishonesty, and materialism of adult society.  And yet a two-inch repp tie and a buttoned-down shirt remain more appealing than a ripped tie-dyed tee shirt.

Bumper stickers of the week:

No matter how things stay the same, they stay the same.

The Age of Aquarius?

Growing old is mandatory, growing up is optional.  Fulfill your duties, but don’t exercise the option.

Leave a comment »

Less Government Regulation Series: Cell Phones And Driving (August 10, 2009)

Posted in Cell Phones, Less Government Regulation Series on August 10, 2009 by e-commentary.org

Her left hand skillfully dangled a glowing butt just outside the window at such an angle that the slipstream did not extinguish it.  Her right hand clutched a cup of java, an eyeliner brush and the cell phone.  Her eyes appeared glued to the rear view mirror and to the task of gluing plaster to her eye lashes.  All the while negotiating a civilian urban assault vehicle at just under 35 miles an hour while merging into or possibly colliding with traffic.  Unless her knees had fingers, who was at the wheel of the four wheeled beast?  She managed to muster an outwardly friendly smile and another hand to wave thanks to the drivers diving into the ditch and median.  Quite a performance.

Bastante; Enough.

Self interest is not acting as a governor of bad behavior.  The Feds should step in and ban all cell phone usage and texting by the driver of any vehicle on any road at any time.  If a person is caught using a cell phone, the cell phone should be confiscated immediately and be subject to forfeiture or a payment of a $500 fine to obtain its release.  Drivers will continue to eat, sleep, crochet, change diapers, hit the kids, work on crossword puzzles, perform open heart surgery, etc. while driving.  However, cell phone usage is so widespread and dangerous and so easy to detect and deter that we as a society need to ban the use of cell phones in vehicles by the driver immediately.

Bumper stickers of the week:

Hang up and drive

This morning in the interstate I looked over to my left and there was a woman in a brand new Cadillac with her face up next to her rear view mirror putting on her eyeliner.  I looked away for a couple seconds.  When I looked back she was halfway over in my lane still working on that makeup.  As a man, I do not scare easily, but she scared me so much that I dropped my electric shaver which knocked the doughnut out of my hand.  In all the confusion of trying to straighten out the car using my knees against the steering wheel, my cell phone got knocked away from my ear, which feel into the coffee between my legs, ruined the damn phone, soaked my trousers and disconnected an important call.  Damn women drivers.

Leave a comment »

Less Government Regulation Series: The Terrorist Tax Again (August 3, 2009)

Posted in Automobiles/Automobile Industry, Energy, Gas/Fossil Fuel, Less Government Regulation Series, Taxation, The "Terrorist Tax" on August 3, 2009 by e-commentary.org

July, 2008:   Gas:   over $4 a gallon   Toyota Prius Hybrid Car:  $3000 over MSRP (Manufacturer’s Suggested Retail Price) and a line of buyers occupying the showroom.

July, 2009:   Gas:   under $3 a gallon   Toyota Prius Hybrid Car:  $3000 under MSRP and a flotilla of the cars littering the car lot.

The Volkswagen tdi (turbo diesel injected) cars followed the same price arc in response to the price of diesel.

The market should maintain its central role in American society.  Embrace it.  Taxing gasoline/diesel at a “quarter a quarter” per gallon contemplates a twenty-five cent ($.25) increase in the tax on fuel each financial quarter (90 days).  [See the “e-ssay” dated December 18, 2006 entitled “Pass The ‘Terrorist Tax’”]  As a compromise, raise the tax twenty-five cents a year every year.  Any tax by its nature contracts the economy which in this situation is akin to the body politic sucking in its stomach a little.

Implementing the tax while the market price of fuel is low is timely and crucial.  The market is ready.  More Prius cars will be built without the government passing legislation requiring more Prius cars.  More resources will be invested creating a more improved hybrid car or a new more efficient car without further government directives to create improved and new vehicles.  Although not fundamentally a revenue-generating measure, the tax funds can fill the fisc and reduce the country’s dependence on Chinese money.  So many other positive economic changes will result without any further government action.

O’Bama must deliver a speech on the proposal as compelling as his speeches in Philadelphia and Cairo.  He can sell it.  Writing the speech would be fun.

The Cars Allowance Rebate System (CARS), the “Cash for Clunkers” Program, is a short-sighted, expensive and misdirected use of government resources and misuse of public resources.  Too much government money is being spent to spew vehicles on the road that require substantial resources to produce and consume substantial resources to use.

Bumper stickers of the week:

25 cents a quarter

Stop funding terrorists

Leave a comment »

Racing Backwards; Moving Forward? (July 27, 2009)

Posted in Race on July 27, 2009 by e-commentary.org

Using the word “stupid” often seems stupid.  O’Bama’s use of the phrase “acted stupidly” to describe the actions of the Cambridge police was neither smart nor appropriate.  However, he rebounded well and is turning the experience into something positive.

However, there is nothing black and white about it.  Blacks (and Hispanics and kids and the underclass) get harassed and detained and arrested far, far more often proportionately than Whites.  Harassment, detention and arrest are rites of passage.  When the light bar ignites on the black and white (the Crown Victoria Police Interceptor), it does not usually light up one’s life if you happen that day to be Black, Hispanic, young or an underclassman.

What really went on in Cambridge is difficult to determine.  When you lose your house keys and decide to break into a home, one hopes that a concerned neighbor will call the police and report an individual trying to break into a home.  A neighbor apparently did call.  Seems that everyone overreacted.  Many words were exchanged, few of them poetic.  Early unconfirmed reports suggest an overdose of testosterone.

We as a country handcuff and lock up far too many people.

A summit conference at the White House with a few cold beers may allow everyone to chill out.  They should discuss ways to reduce the use of handcuffs and lock up.

Bumper sticker of the week:

Silence is silver

Leave a comment »

« Older Entries
Newer Entries »