Brown Is The New Black (February 18, 2008)

Posted in Immigration, Race, Society on February 18, 2008 by e-commentary.org

Almost all societies despise or at least resent one or two domestic groups and one or more foreign groups.  In America, the groups to hate and resent included Blacks and also the most recent immigrants to depart the ship (Germans, Irish, Scots, Poles, Italians, Jews, Tongans, etc.).  Look at the celebrated boxers across time (John L. Sullivan, Rocky Marciano, Mohammed Ali, Oscar de la Hoya).  They tend to be drawn from the group that was feared, despised, resented and oppressed at the time.

Polite society is careful about using the “n-word” today, although derivative and derisive words such as “denigrate” (defame; belittle) and “niggardly” (stingy) are still used without reflection.  The quiet unrelenting campaign to imprison Blacks continues with one percent of the population in the pokey.  There are still “Jena 6s” and the resurgence of the Noose as a tool of domestic terrorism.  Today’s KKK members dangle the Noose Knot (not a Sheet Bend Knot or a Carrick Bend Knot) and then assert that they don’t know what it means.  Their admission that they are ignorant is not disputed, yet they knew and know exactly what they are doing.  The calls for “hate crimes” legislation to address the matter collide with First Amendment considerations.  The solution is easy; those who claim that they do not know what the Noose means should be afforded an opportunity to make the statement under oath to someone with a badge; they will hang themselves; prosecuting them for and proving perjury and obstruction of justice is so easy it can be delegated to a summer legal intern.  The Confederate flag has become America’s swastika.  The current scene is not all pretty.  Nonetheless, there is less overt prejudice against Blacks today than in the past.  An African-Saxon is running for President.  America has made and is making progress.

However, Brown has become the new Black.  Many otherwise decent Whites are threatened by Browns far beyond any plausible threat posed by them.  A few well-educated White boys agree to frequent a company that directs callers to touch “1” on the telephone dial to hear the message in English rather than the competing company that directs callers to touch “2” to hear the message in English.  “We are number 1.”  Fear and insecurity are ugly and ever-present and timeless.

The Browns are doing the work that others do not want to do.  They put the family into family values.  They are learning the English language despite the unfounded accusations of the nativists to the contrary.  A recent e-mail message denigrating Browns was written in what can only be described as “white trash” English syntax; the authors were not even bright enough to recognize the irony of their own incompetence.  Browns serve this Republic in the military in greater percentages than others.  They are the ones admittedly using more social services.  They will also be the ones most likely to pay off some of the massive Debt accumulated by the Whites.  [See the e-ssay dated March 28, 2005 entitled “Black, White, Brown, Red and Green:  An E-ssayer on Immigration.”]

Bumper sticker of the week:

Fear is Debilitating

The Economic Surge: Pushing On A Rope (February 11, 2008)

Posted in China, Debt/Deficits, Economics, Taxation on February 11, 2008 by e-commentary.org

The proposed “economic surge” seeks to inject about $150 billion into the economy.  Some note that the $150 billion will be borrowed from China to buy toys and other goods from China.  They give us the dollars and the goods.  They have the goods on us.  And the dollars.  Business as usual.

Some observe that the recent rise in gasoline prices has increased the cost of living for citizens by about $150 billion.  They say that the economic surge will offset that expenditure.  However, the additional payment for gasoline should be seen as a direct payment–foreign aid–to many dangerous political regimes.  The U.S. is directly funding terrorist activities rather than taxing gasoline and both keeping the additional taxes and reducing consumption of oil.  [See the e-ssay dated December 18, 2006 entitled “Pass The ‘Terrorist Tax’”].

Few are saying that the $150 billion dollar economic surge is a tax.  It is a tax.  It is a tax on the kids.  The “Kid Tax” is more important that the “Terrorist Tax.”

The problem with the economic surge is that it is a chimera.  The Federal Reserve action may prevent a panic on Wall Street in the short term, yet it is creating a greater problem on Main Street now and in the intermediate run.  The fundamental problem is not just the number of dollars available for circulation in the economy, it is the individual consumers who are the fuel of the economic engine.  The public, like its government, is spent.  All are in debt up to their tonsils.  More debt, private and public, is not the intermediate run answer.  The lowered interest rates are creating a disincentive for saving when everyone of every political strip states that we should be saving.  The impact of lower interest rates is being felt again by the elderly who are now earning less.  [See the e-ssay dated April 25, 2005 entitled “Our Friend The Fed”].

Bumper sticker of the week:

They matter (Budget Deficits, Personal Deficits, Trade Deficits)

The Microeconomics of Suburban Subsistence: Three Years Later (February 4, 2008)

Posted in Economics, Housing, Society on February 4, 2008 by e-commentary.org

40 wasn’t a red letter year for them.  They are deeply in the red this year.  [See the e-ssay dated February 7, 2005 entitled “The Microeconomics of Suburban Subsistence” for background].  He can only find part-time work for a company that does not provide any health care or contribute to a pension fund.  Their $175,000 house is now worth $150,000 even with all of the improvements financed with an equity line of credit and sweat.  The City still appraises it at $200,000 because the polis wants its pound of flesh.  The price of a pound of (bovine) flesh has risen about forty percent (40%); the meat may be tainted.  The Fed’s reduction of the Federal Funds Rate has not been passed on or trickled down to them or to prospective buyers of their home.  Interest rates to consumers are “sticky” and “ratcheted.”

The calls start like clockwork, because the callers start with the clock.  He can set his watch by the first call.  At eight o’clock, they start.  They would start earlier except for . . . federal regulation.  The Fair Debt Collection Practices Act, a federal regulation, sets limits on the amount of harassment that can be inflicted by a creditor on a debtor.  And the wake-up calls continue unabated all day, even after the consumer is wide awake.  From 0800 hours until 2100 hours.  Caller id is now a necessity rather than a luxury.  The credit card companies that cooed and wooed him are now cajoling and whining.  The companies devised a Bankruptcy Code that is expensive and burdensome.  The “Hope Now” program does not offer much hope now.  Try it; call the number yourself.  However, Congress now is considering a variety of legislation including a bill that allows the Bankruptcy Courts to adjust the amount owed on a home loan to reflect the current market value of the property.  That approach has some possibility.

Not only is the value of the house down.  Of note, the note for the car is now greater than the retail Blue Book value of the beast.  Each 25 cent rise in the retail price for gasoline lowers the market value of the gas guzzler by about one thousand dollars.  The rational course of action may be to give their car back to the bank and walk away from the house.

Bumper sticker of the week:

Greed isn’t always really good

State of the Union Address (January 28, 2008)

Posted in Bush on January 28, 2008 by e-commentary.org

My fellow Americans,

I raised the national Debt from 5.7 trillion dollars at the beginning of my reign to more that 9.2 trillion dollars today.

I squandered a $261 billion dollar budget deficit and now propose a deficit that could swell to $250 billion dollars or more once the economic surge is approved.

I lied to you that deficits do not matter.

I watched unemployment rise from 4.2 percent in 2001 to 5.0 percent and rising today from the comfortable of Air Force 1.

I slept comfortably in the White House while the country built a house of cards constructed of houses which then collapsed predictably into the worst financial crises in the last 80 years.

I precluded any regulation at the federal level and preempted any rules by the states to govern lending practices for housing that would have prevented or mitigated this economic catastrophe.

I destroyed the reputation and respect previously accorded the United States of America in the world.

I divided our allies and united our enemies.

I ordered an unprovoked and unnecessary attack against a sovereign nation that did not threaten the security and well-being of the United States.

I changed the justification for the invasion code-named Operation Iraqi Liberation (OIL) each time one lie proved to be too false and too fraudulent even for you the American people to swallow.

I played fiddle while the military played taps.

I presided during a rise in oil prices from about $23 a barrel on September 11, 2001 to about $100 a barrel.

I watched gas go from about $1.50 a gallon in 2001 to about $3.00 a gallon and higher on my watch.

I hired faux journalists and fooled the real ones.

I undermined the Constitution at every opportunity.

I deceived myself and the public every day.

I decided.

W

Bumper sticker of the week:

qWagmire

Talk About Housing (January 21, 2008)

Posted in Housing, Perjury, Society on January 21, 2008 by e-commentary.org

“It’s a no-brainer.  You can’t miss.  You don’t need a job and you don’t need any income.  Okay, so you already have two strikes going against you, but they really don’t care.  Just lie and tell them you are unemployed with no income.  Buy and ride it up and then sell.  You don’t even have to paint the place.”

“You have to heat it.”

“You can get one place and flip it and then get another one and flip it.”

“It will flop.  And you must insure it.  In my book, insurance is necessary but not productive.”

“Everyone’s doin’ in.  It can’t fail.”

“And more taxes.  They give you enticing tax breaks to acquire a bigger palace that is then subject to higher taxes.  My digs are already too big.”

“I shared one bathroom with three others and now I have four to myself.  I can shower in three different showers.  One is a steam bath.  Now, that’s livin’.”

“And buy more furniture.”

“I can sleep in one of five bedrooms.  I had to share a room with my brother.”

“Prices will collapse by 2006, 2007 at the latest.”

“No way.  This is America.”

“They take the bait and call in.  They are already hooked.  Operators standing by to assist you.  No one stands by to assist you.  I sold some old lady in Florida, some seventy-something widow, a loan for $44,000 on a property she owned free and clear.  She had enough income to cover her expenses, but I told her she needed more and told her she knew it because she called the number.  She can cover the early payments, and I’ll be gone before she realizes what hit her.”

“Seems sporting.”

“It was her decision.”

”Seems that someone in her seventies doesn’t always make sound decisions.”

“Look, this is America.  The land of the free.  The home of the brave.  Apple pie.  All that stuff.  She is free to make her own decisions.  And anyway, she’s old, she can eat dog food.”

Bumper sticker of the week:

Let Them Eat Dog Food

The “R” Word; The “D” Word or The “S” Word? (January 14, 2008)

Posted in Conflicts of Interest, Depression, Economics, Perjury, Rating Agencies, Recession on January 14, 2008 by e-commentary.org

“A recession occurs when your neighbor loses his job; a depression occurs when you lose your job.“  A recession is technically defined as two successive quarters of a downturn in the economy.  The traditional definition of a recession is backward looking.  Would you value being told that you were pregnant fifteen months ago?  Policy planning requires a more forward-looking perspective.  If you lose your job, is it a depression?  If you have less earning capacity despite working overtime and pay more for goods and services, is it stagflation?  (See the e-ssay dated August 7, 2006 entitled “The Fed: Deal With ‘Stag’; Deal With ‘Flation’?”).

The credit rating agencies such as Standard & Poor’s, Moody’s and Fitch suffered from the same grade inflation their employees suffered from in college.  Everyone in college gets As; their parents are spending too much to bestow anything less.  In the real world, the grade inflation is trebled.  The credit rating agencies gave the insurers of bonds the “AAA” ratings.  The insurers of bonds such as Ambac Financial Group and MBIA also suffered from grade inflation.  The insurers of bonds then gave everyone the “AAA” ratings.

The downturns in foreign markets today are a more accurate verdict on the state of and prospects for the American Economy.  In America, risk is not tied to reward whereas foreign investment professionals are more accountable for their performance.  And while the foreign kids were in college, they did not get As just for showing up.

[The recent incident in the Strait of Hormuz:  Gulf of Tonkin II or the USS Cole II?  The statements in English (not translated from a foreign language) from someone expressed a clear present intent to do harm.  The Navy responded in a professional and disciplined way and maintained their course and speed.  Someone can be provocative without provoking a response that is not in the nation’s interest.]

Bumper sticker of the week:

The Mortgage Meltdown continues.

Deficits Do Matter (January 7, 2008)

Posted in Bush, Congress, Debt/Deficits on January 7, 2008 by e-commentary.org

There may be no greater lie than the one advanced by Reagan, Bush, Cheney and others that budget deficits do not matter.  Budget deficits do matter.  Budget deficits are a form of taxation.  Budget deficits are a tax imposed on the next generation.  The Cheney-Bush team and their ilk have raised taxes via deficit spending more than all other previous administrations in American history.  The Reagan budgets produced the second largest deficits as a result of “tax increases.”  About seventy percent (70%) of the Nine Trillion Two Hundred Billion Dollar + (9,200,000,000,000.00 +) Debt is attributable to Reagan, Bush, Bush and Cheney.  An irresponsible Congress constituted of Democrats and Republicans and an irresponsible White House populated by Democrats and Republicans contributed.

A temporary budget deficit followed by a balanced budget or a surplus would not matter in the intermediate run.  However, a deficit (“little d”) that is followed by a deficit followed by a deficit followed by a deficit followed by a deficit followed by a deficit has created and is creating a catastrophic national Debt (“Big D”).  Imagine spending $10,000 a month for twelve (12) months.  The $10,000 expenditure is a “rate” of spending and is described as the “deficit.”  At the end of the year, the total amount of $120,000 and accumulated interest is described as the “Debt.”  deficit + deficit + deficit + deficit + deficit + deficit ……. = Debt.  The Debt is now more than nine decimal two (9.2) trillion dollars.   $9,200,000,000,000.00.

Bumper stickers of the week:

deficits do matter;
Debt really does matter

Debt Is Deferred Taxation

Debt is Debilitating

Attention:  deficit Disorder

Attention:  Debt Disorder

Trade Deficits Matter Also

Household Debt Matters Also

Looking Back and Ahead (December 31, 2007)

Posted in Economics, Law, Politics, Society on December 31, 2007 by e-commentary.org

The Mortgage Meltdown continues unabated.  Someone should collect a chronological list of the statements of the economists and businessmen in 2007 who predicted that the Mortgage Meltdown was “no big deal.”

The political pundits have voted.  ________________ is the Republican nominee. ________________ is the Democratic nominee.  No doubt about it, they proclaim.  Someone should collect a chronological list of the prognosticators’ predictions in 2007 and those yet to be made in 2008.  What do the tenth-graders say:  Faze the Nation; Beat the Press; Almost Broadcasting Company; Faux News; Useless News and World Distort; The Compost, etc.; those crazy kids.

The Neo-Confidence Men (“Neo-Cons” in ordinary parlance) have once again declared “Mission Accomplished” in Iraq.  The pundits seem to be bamboozled again.  More Americans died in Iraq in 2007 than in any other year.  World War III continues unabated.  The escalation surge has not advanced any fundamental interests.  The cauldron in Iraq and the Middle East continues to roil and boil and percolate.  Afghanistan and Pakistan and ________stan are roiling and boiling and percolating.

Someone observed that “’experience’ is simply the name we give to our mistakes.”  Now may be the time to call our recent experiences mistakes.

The sports pages are laced with steroids and punctuated with asterisks.  Turn off the tv and go biking, hiking, running, living.  The writing in the sports pages is still worth reading.

Global climate change/warming is heating up and is the subject of ordinary conversation.  Embryonic stem cells may now be available without controversy.

Resolution for 2008.  The Republic needs every citizen to commit to a private sector health care initiative.  Eat less; exercise more.  Exercise your mouth less and your feet more.  At least in January.

Prediction for 2008.  An ugly, vicious, amusing and expensive political campaign.  Something big will happen abroad (Iraq, Iran, Afghanistan, Pakistan, ________stan, Yemen, etc.) in Aug. – Oct. and all bets will be off.  Or what is happening at home in the economy will finally become clear to the electorate and command attention.

And Anna Nichole Smith, RIP.

Bumper stickers of the year:

If all economists were laid end to end, they would not reach a conclusion.  GBS

If all political pundits were laid end to end, they would not reach a clue.

If all climatologists were laid end to end, they would ___ would not ___ reach a consensus.

Experience is simply the name we give to our mistakes.  Oscar Wilde

Pax (December 24, 2007)

Posted in Health Care, Society on December 24, 2007 by e-commentary.org

Pax

Bumper sticker of the week:

Why was Jesus born in a manger?  Because Joseph and Mary were enrolled in an HMO.

On Respect, Fear, Admiration and Irreverence (December 17, 2007)

Posted in Society on December 17, 2007 by e-commentary.org

Respect (R) is a mix of Fear (Fe or F) and of Admiration (Au or A).  Marine Corps Drill Instructor:  R=Fe8Au1.  Minister:  R=Fe4Au4.  Den Mother:  R=Fe1Au8.  When the A evaporates, however, the residue is F.  The F is often sedated by adopting a detached and irreverent world view.  The F is often sedated with sedatives.  When Admiration for society’s institutions and individuals disappears, Irreverence emerges as a defense mechanism.  Irreverence is a manifestation of alienation (for those under 25 years old) and disconnection (for those over 25 years young) and a defense mechanism.  The populace is becoming more alienated and disconnected from American institutions and individuals. [See the e-ssay dated August 28, 2006 entitled “The Residue of Unrelenting Fear:  PTSD Afflicts The Populace”].  And no one seems to know or to care.

[With a nod to Montaigne’s work Essais.]

Bumper sticker of the week:

I could care.