May 7, 2012

Bits Bucket for May 7, 2012

Post off-topic ideas, links, and Craigslist finds here.




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Comment by Martin
2012-05-07 04:00:38

How is Hollande’s win imapct the US stocks and the worldwide economy?

Comment by Bill in Los Angeles
2012-05-07 06:46:08

I think his win is good for U.S. Stocks in the long run. As more developed nations chicken out on austerity and return to stimulus spending of other peoples money, stock indices will do very well…until the socialists run out of other peoples money!

Comment by In Colorado
2012-05-07 07:58:54

They’ll just keep the printing presses running.

 
Comment by Neuromance
2012-05-07 08:38:02

The Germans are afraid of inflation. They have historical cause to be.

Merkel, who faces two German state elections in May and a national election in the fall of 2013, joined with Sarkozy to craft the euro area’s crisis response over the past year and backed him for re-election. She insisted on the need for austerity yesterday, saying Europe’s “credibility” depends on reducing deficits and debt.

“We’re not saying that saving solves all problems,” she told a conference in Berlin. Still, “you can’t spend more than you take in. You can’t live your whole life this way. Everybody knows this.”

http://www.bloomberg.com/news/2012-04-24/merkel-pushes-back-against-hollande-s-call-to-end-austerity.html

The ones advocating some restraint in more deficit spending and money printing in the US are being trounced by those advocating more stimulus. The problem I think is, the system works until it doesn’t. And when it breaks due to a credibility/confidence gap, it will break fast and hard.

Comment by Happy2bHeard
2012-05-07 12:53:55

The Germans are benefitting from the Euro. It is in their interest for it to continue to exist and for other countries to implement austerity. They are the 1% of countries. Money has been flowing in their direction.

It is easy to manage a budget when you take in more than you have to spend on necessities. If you take in less than you need to spend, then you need to increase income, not cut spending.

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Comment by Lenderoflastresort
2012-05-07 20:23:23

“We’re not saying that saving solves all problems,” she told a conference in Berlin. Still, “you can’t spend more than you take in. You can’t live your whole life this way. Everybody knows this.”

Can you imagine Obama saying this? I can. But not for 2 years hence. Hang onto your hats!

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Comment by The_Overdog
2012-05-07 08:39:42

He’s promising a 75% top marginal tax rate, and apparently has the power to actually implement it. Should be interesting testcase to see who is right vis a vis high earners sticking around or hightailing it out of the country due to high marginal taxes.

It’s also messed up when French Socialists are more fiscally conservative than US Republicans are.

Comment by John D
2012-05-07 14:31:02

“Should be interesting testcase to see who is right vis a vis high earners sticking around or hightailing it out of the country due to high marginal taxes.”

Did the US see high earners hightail it when our top marginal rate was 91% in the 1950s?

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Comment by Bill in Los Angeles
2012-05-07 20:22:55

Nope. There were proportionately so few of them that no one noticed. In the late 60s /70s there was a bifpg stink about Robert Vesco and the singer Mitch Miller. Today’s Mitch Miller is Wesley Snipes.

 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 12:19:29

So long as the U.S. stock market keeps going up, the latest Eurozone political fiasco can be safely ignored.

Op-Ed Columnist
Those Revolting Europeans
By PAUL KRUGMAN
Published: May 6, 2012

The French are revolting. The Greeks, too. And it’s about time.
Fred R. Conrad/The New York Times

Both countries held elections Sunday that were in effect referendums on the current European economic strategy, and in both countries voters turned two thumbs down. It’s far from clear how soon the votes will lead to changes in actual policy, but time is clearly running out for the strategy of recovery through austerity — and that’s a good thing.

Needless to say, that’s not what you heard from the usual suspects in the run-up to the elections. It was actually kind of funny to see the apostles of orthodoxy trying to portray the cautious, mild-mannered François Hollande as a figure of menace. He is “rather dangerous,” declared The Economist, which observed that he “genuinely believes in the need to create a fairer society.” Quelle horreur!

What is true is that Mr. Hollande’s victory means the end of “Merkozy,” the Franco-German axis that has enforced the austerity regime of the past two years. This would be a “dangerous” development if that strategy were working, or even had a reasonable chance of working. But it isn’t and doesn’t; it’s time to move on. Europe’s voters, it turns out, are wiser than the Continent’s best and brightest.

What’s wrong with the prescription of spending cuts as the remedy for Europe’s ills? One answer is that the confidence fairy doesn’t exist — that is, claims that slashing government spending would somehow encourage consumers and businesses to spend more have been overwhelmingly refuted by the experience of the past two years. So spending cuts in a depressed economy just make the depression deeper.

 
 
Comment by Realtors Are Liars®
2012-05-07 04:26:01

Realtors Are Liars®

 
Comment by The UNKNOWN TENANT
2012-05-07 04:31:21

[last lines]

Obama: [with a cliff in front of them and U.S. tax payers behind them]

Republicans: OK, then listen; let’s not get caught.

Obama: What’re you talkin’ about?

Republicans: Let’s keep goin’!

Obama: What d’you mean?

Republicans: …Go.

Obama: [Obama nods ahead of them]

Obama: You sure?

Republicans: Yeah.

Bernanke: [seeing U.S. tax payers run toward the car] Hey!

US Economy Faces Risk of ‘Fiscal Cliff’: Fed Officials

By: Margo D. Beller
Special to CNBC.com
Published: Tuesday, 1 May 2012 | 2:32 PM ET

Two Federal Reserve officials warned Tuesday that the U.S. could be heading for a “fiscal cliff” at year’s end if mandated tax increases and spending cuts are implemented.

http://www.cnbc.com/id/47246646 - 151k -

Comment by Professor Bear
2012-05-07 07:13:50

It seems the Congress and the President are playing a game of fiscal vrs monetary policy chicken with the Fed. Time will tell if somebody will blink before the collision.

Sunday May 6, 2012
Austerity cannot drive consumption and recovery
By THANONG KHANTHONG

OVER the next two to three months, Europe might be forced to come to terms with the failure of its unification.

For now, the focus is on France’s presidential election today.

The leading candidate, Francoise Hollande, has been calling for further deficit spending to boost growth and to avoid the next crisis.

Nicolas Sarkozy, the incumbent president, would like to regain investors’ confidence by cutting the government budget deficit and reducing the debt.

France’s unemployment rate almost touches 10% compared with 6.8% for Germany.

If Hollande were to win the election and get the spending increase he wants, where would the growth come from amid the tonnage of toxic assets?

Still, the general mood in Europe is against austerity. Spending cuts and debt reductions are unpopular. In the Netherlands, the government resigned recently after disagreement over fiscal prudence.

Marches and protests across Europe on May Day reflected the mass resentment against high unemployment and shrinking standards of living.

Unemployment in the 17 countries that belong to the euro zone rose to 10.9% in March from 10.8% in February, according to Eurostat, the European Union’s statistics agency. In the same period last year, the rate was 9.9%.

This shows that the euro area is facing a deterioration of its economy, with flat growth prospects.

Greece is facing a full-blown crisis, whereas Spain’s unemployment has reached 25%.

This is a dilemma facing the euro zone – any further increase in debt spooks investors and the bondholders. At the same time, deficit reductions will unleash social unrest and street demonstrations.

Germany might be the strongest economy in the euro area for now. But who will buy its manufactured goods when most Europeans run out of money?

The European Central Bank is doing its bailout role. It is now up against the wall, with a bailout of more than US$1.2tril (RM3.65tril) to prop up the banks and sovereign debts.

Sovereign governments and banks are also saving each other from drowning. They give money to the banks to prevent the banks from collapsing. The banks in turn use the proceeds to buy up the government bonds.

This merry-go-round scheme can’t continue forever.

The International Monetary Fund’s recent attempt to recapitalise by US$600bil (RM1.83tril) reflects the fact that more firepower is needed to bail out the banks and the sovereign debts. The amount of money needed to bail out the global financial system is mathematically impossible to generate.

In the United States, it is a matter of time before the Federal Reserve unleashes a third round of “quantitative easing” (QE3). Interest rates have been kept at zero per cent since December 2008.

The Fed officials have signalled that they will maintain this ultra-low monetary policy at least until 2014. This is unprecedented in the history of US monetary policy, when a zero interest rate policy will be kept for a long-running period of at least seven years. It also means US deflation continues unabated.

Comment by Professor Bear
2012-05-07 07:20:26

When is a QE3 announcement likely to be made?

Comment by Jerry
2012-05-07 08:04:11

Q3 money coming soon. Central Bankers can not resist “creating new money” for others[suckers] to borrow to add further gross profits. Call in the Goldman Sacks Boys now!

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Comment by In Colorado
2012-05-07 08:08:00

QE3 will come sooner or later. And QE4 will come after the “financial cliff of 2013″ is legislated away. No matter who wins in the fall, the trillion dollar+ deficits won’t go away.

 
Comment by polly
2012-05-07 08:43:52

I think that whatever happens when we next reach the debt ceiling is more interesting than QE-whatever or even taxmageddon. I know they tried to make sure it would happen after the election, but a downturn in receipts could screw up the calculation and if it happens after the election in a lame duck congress (even if control isn’t shifting and the President is reelected) is…well…I wouldn’t bet against a hard government shut down and not just because I wouldn’t get paid or even be allowed to work.

 
Comment by oxide
2012-05-07 08:44:11

What does this mean for house prices?

 
Comment by In Colorado
2012-05-07 09:12:49

Not sure about houses, but I expect ground beef and gasoline will go up … again. But no worries, iPads will remain “affordable”

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 09:24:58

“What does this mean for house prices?”

Null hypothesis: Any addition to the monetary base can only work in favor of higher nominal house prices.

Alternative hypothesis: Adding to the monetary base did not lead to higher house prices in Japan over the course of two decades after their bubble popped; is it some how different in the U.S.?

 
Comment by In Colorado
2012-05-07 09:51:39

“is it some how different in the U.S.?”

I seem to recall that Japan’s housing bubble was at least an order of magnitude more insane than ours, with multimillion dollar flats and my personal favorite: the Imperial Palace grounds was supposed to be worth more than all of California.

I suppose they had a lot farther to drop. After doing a little googling I found that the average apt in Tokyo (~700 sq ft) goes for $500K USD. They are “cheaper” in places like Yokohama (300K) and Nagoya (low 200s).

So, the average apartment in Japan costs more than the average house in the US. Sounds like they still have a long way to go. I didn’t even look at how much a house costs. They must be only for the wealthy.

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 10:25:52

“I seem to recall that Japan’s housing bubble was at least an order of magnitude more insane than ours, …”

It may have been more insane, but it was also much more localized. The current bubble is globalized to housing markets in all Westernized nations, including India and China.

Given this qualitative distinction, I believe comparisons of magnitude are futile.

 
Comment by rms
2012-05-07 11:24:17

But no worries, iPads will remain “affordable”

+1 Sad, but true.

 
Comment by In Colorado
2012-05-07 11:56:05

” The current bubble is globalized to housing markets in all Westernized nations, including India and China.”

Agreed, that is scary. It seems that everyone wants to be a next exporter and have unaffordable housing these days.

 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 08:01:10

Will Selloff Cause Fed to Pull the Trigger?
April 4, 2012

WSJ’s Sudeep Reddy takes a seat on Mean Street to discuss the selloff on Wall Street and what options it might present to the Federal Reserve. Photo: Bloomberg News.

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 12:51:27

May 7, 2012, 3:36 p.m. EDT
U.S. to run first surplus since 2008: CBO
Surplus is first of Obama’s presidency
By Robert Schroeder, MarketWatch

WASHINGTON (MarketWatch) — The U.S. government recorded a budget surplus of $58 billion in April, the Congressional Budget Office estimated on Monday, breaking a streak of deficits that began in 2008.

The surplus — the first of Barack Obama’s presidency — was the result of both increased tax collection and lower government spending. Before April, the government had not run a surplus since September 2008, the month that the financial crisis struck the U.S. economy. Read CBO report.

The CBO’s estimate is released before the Treasury Department’s monthly budget report. That report is scheduled for later this week.

CBO estimated that receipts were $30 billion higher in April than the same month a year ago, due to declining refunds that month and higher corporate income tax receipts. Spending fell by $69 billion compared to April 2011, marked by lower outlays on defense, Medicaid and the Postal Service.

 
 
Comment by Realtors Are Liars®
2012-05-07 04:39:07

I publicly shutdown an insurance salesman and evang fundie yesterday. He was running his mouth using the same realtor lies…. “with interest rates this low blah blah blah blah.” After telling him prices are falling, how can it be a good time to buy, he replies with “if you’re going to be there for 10 or 20 years”, to which I asked, “how does duration detract from the massive loss by buying now? Prices are falling.” Then “ask the tens of millions who paid grossly inflated prices over the last 14 years how that worked out for them….. so here you’re advising people you claim to care about to go out and do the same? Why are you doing that Ken?”

Shamed him and Shut’em down. He’s not malicious…. just stupid.

Comment by In Colorado
2012-05-07 08:00:09

Technically “evangs” and “fundies” are two different breeds. Similar, but there are some differences.

Comment by Realtors Are Liars®
2012-05-07 08:08:59

They seem to have more similarities than differences.

Comment by In Colorado
2012-05-07 08:41:18

Like I said they are similar, perhaps int the way Orthodox and Catholics are similar. I once met a fundy who bristled at being “Evangelical”. In his words, evangs are “liberal”.

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Comment by Realtors Are Liars®
2012-05-07 08:42:49

Bin Laden and his clan were fundies.

 
Comment by rms
2012-05-07 11:28:48

Bin Laden and his clan were fundies.

And Bin Laden used hair color.

 
Comment by Realtors Are Liars®
2012-05-07 11:37:00

Hair color didn’t make him a psychopath. Fundamentalism did.

 
 
 
 
 
Comment by Hard Rain
2012-05-07 05:01:38

Predictable result of economic collapse. Target the low hanging fruit and then move up the food chain.

Be afraid, exultant Greek neo-Nazis warn rivals

Greek neo-Nazi party Golden Dawn warned rivals and reformers Sunday that “the time for fear has come” after exit polls showed them securing their entry in parliament for the first time in nearly 40 years.

“The time for fear has come for those who betrayed this homeland,” Golden Dawn leader Nikos Michaloliakos told a news conference at an Athens hotel, flanked by menacing shaven-headed young men.

Michaloliakos said his party would fight against “world usurers” and the “slavery” of an EU-IMF loan agreement which he likened to a “dictatorship”.

It has portrayed immigrants as stealing Greeks’ jobs and as being responsible for a wave of crime, as the country is the first point of entry for many illegal migrants into the European Union.

http://news.yahoo.com/afraid-exultant-greek-neo-nazis-warn-rivals-203620995.html

Comment by In Colorado
2012-05-07 06:31:27

Sometimes, the banksters can be their own worst enemy. Then I suppose it’s human nature to be insatiable, to always want more, so they simply can’t help sowing the seeds that lead to problems like this.

Comment by Bill in Carolina
2012-05-07 07:13:41

I can think of at least one person here who, based on previous posts, is probably salivating at the thought of seeing pictures (on the internet anyway) from Greece of “world usurers” and illegal immigrants being strung up on lampposts by menacing shaven-headed young men.

Once the blood-lust starts, the number of targets invariably increases, and immigrants will be just part of the resulting “collateral damage.”

Comment by 2banana
2012-05-07 08:27:31

When those on the government payroll/gravy train become so large it becomes unsustainable – it will always ends in violence.

“A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship.”
–Alexis de Tocqueville.

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Comment by alpha-sloth
2012-05-07 09:33:22

A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury.

The quote is usually attributed to Scottish historian Alexander Fraser Tytler (1747-1813), but it never appeared in any of his known published writings. The first verified appearance of the quote was in what appears to be an op-ed piece printed on page 12A of the newspaper “The Daily Oklahoman” on December 9, 1951 under the byline Elmer T. Peterson.
wikianswers
__

It’s always amusing when right-wing talking points collide with facts. Isn’t Elmer T. Peterson an impressive enough source? What would a Frenchman know about Amurrica, anyway?

 
Comment by Northeastener
2012-05-07 09:34:55

The question is at what point does nationalism take over and the EU dissolve? At what point does war come to Europe once more (as if two World Wars in the last century wasn’t enough)?

 
Comment by measton
2012-05-07 10:31:46

Really 2b
I thought it was when 20-30-40% of the population becomes unemployed and destitute because there is no safety net and no job that things get unstable.

democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits

You might want to take a look at who the winners of the last 30 years have been under democracy. It sure hasn’t been the working class.

 
Comment by 2banana
2012-05-07 10:50:05

The 30 years.

The MASSIVE increase in the size and scope of government.

The MASSIVE increase in the powers of public unions.

The MASSIVE decrease in personal liberty.

Yeah - I know who the winners are. The liberals, socialists and progressives instituting their vision of America

—————————

You might want to take a look at who the winners of the last 30 years have been under democracy. It sure hasn’t been the working class.

 
Comment by MightyMike
2012-05-07 11:25:54

The quote is usually attributed to Scottish historian Alexander Fraser Tytler (1747-1813), but it never appeared in any of his known published writings.

Yes, it’s highly unlikely that either Tocqueville or Tytler would have written such a thing. The phrase “loose fiscal policy” probably wasn’t used before the 20th century.

 
Comment by knockwurst
2012-05-07 11:30:30

Hey, 2banana, What’s your suggestion for a “permanent government” anyway? I’m not sure I even like the sound of such a thing, and there’s never been one anyway. Monarchy, dictatorship, democracy, anarchy, none of them are permanent, so I don’t see how impermanence is, by itself, such a damning quality of any form of government.

 
Comment by RioAmericanInBrasil
2012-05-07 11:48:07

The 30 years…..The MASSIVE increase in the size and scope of government.

2 banana, Serious question? Where do you see a massive increase? According to this guy and using government stats:

Total government spending as % of GDP in 1982: 36.25%

Total government spending as % of GDP in 2007: 35.09%

Now with the soft depression it’s up to 43%? So where is the “MASSIVE increase”? And remember there are two wars lately that are included in that 35% of GDP in 2007 and the figures in 2012. So not including the wars, where is this “massive increase in the size of government?

http://www.usgovernmentspending.com/us_20th_century_chart.html

And this:
In 2010, the Federal government of the USA spent an average of $11,041 per citizen (per capita). This compares to the …..average of $16,110 per citizen for the World’s 20 largest economies (in terms of GDP). Of the 20 largest economies, only six spent less per citizen (than the USA) wiki

And this:
“Since the beginning of (Obama’s) term, state and local governments have shed 611,000 employees, including 196,000 educators, according to government statistics” 4/29/12 Washington Post

 
Comment by In Colorado
2012-05-07 12:01:01

The MASSIVE increase in the size and scope of government.

The MASSIVE increase in the powers of public unions.

FWIW, those groups are not “the majority” that is allegedly using the ballot box to help themselves to the treasury. They are a minority. Perhaps they are a problem, but they don’t fit your quote.

 
Comment by 2banana
2012-05-07 12:17:00

Using the same web page you quoted which you obviously didn’t read:

“Federal debt exploded during World War II to over 120 percent of GDP, and then began a decline that bottomed out at 32 percent of GDP in 1974. Federal debt almost doubled in the 1980s, reaching 60 percent of GDP in 1990 and peaking at 66 percent of GDP in 1996, before declining to 56 percent in 2001. Federal debt started increasing again in the 2000s, reaching 70 percent of GDP in 2008. Then it exploded in the aftermath of the Crash of 2008, reaching 102 percent of GDP in 2011.

And BTW - Spending (today) does not equal all the debt/promises that has been piled on in the last 30 years. Every chart in the web site you cited SCREAMS this.

Try not to be so blind in your partisan hunt for data to back up your absurd talking point that the US government has not massively grown in the last 30 years.

————–

2 banana, Serious question? Where do you see a massive increase? According to this guy and using government stats:

 
Comment by Steve J
2012-05-07 12:21:18

How are unions gaining power?

They are the weakest they have ever been.

 
Comment by Realtors Are Liars®
2012-05-07 12:24:02

And don’t forget the MASSIVE decline in overall union membership

—————————

You might want to take a look at who the winners of the last 30 years have been under democracy. It sure hasn’t been the working class.

 
Comment by sleepless_near_seattle
2012-05-07 13:31:35

I usually refer to this:

http://en.wikipedia.org/wiki/Income_inequality_in_the_United_States

Handy graphs on who has benefited the most from MASSIVE spending over the past 30, and on union membership as well.

 
Comment by RioAmericanInBrasil
2012-05-07 13:57:40

Try not to be so blind in your partisan hunt for data to back up your absurd talking point that the US government has not massively grown in the last 30 years.

2bananna,
You did not answer the question 2banana. You said the government has grown massively the past 30 years. I showed you in my above post that total (Fed, State, Local) government spending as a percentage of GDP did not grow “massively” :

Total government spending as % of GDP in 1982: 36.25%

Total government spending as % of GDP in 2008: 37.14%

You did not address the total governmental spending as a % of GDP, which the above figures show did not grow much at all the past 30 years until the current Depression. Instead you cited debt figures which anyone knows grew massively after the BushTaxCutsForTheRich and the Depression. “Federal debt started increasing again in the 2000s, reaching 70 percent of GDP in 2008″ The debt is as much of a revenue problem as a spending problem.

So you have ducked the figures and ducked the question. So maybe you should take your own advice and:
Try not to be so blind in your partisan hunt for data to back up your absurd talking point that the government has not massively grown in the last 30 years

Here is another chart to 2003 showing no “MASSIVE” increase in government spending the 20 years prior 2003 and it also shows that spending went up more under Repub than Dem Presidents. And as my first chart above showed, from 2003 to 2008 total government spending hovered around 35% of GDP. So again, where is the “MASSIVE” increase in government the past 30 years relative to GDP? And remember much of the government spending is for wars.

http://carriedaway.blogs.com/carried_away/2003/10/us_government_s.html

 
Comment by 2banana
2012-05-07 14:19:10

PUBLIC unions gentlemen.

They have destroyed and bankrupted every city/county/state they infest.

They are the top ALL time campaign political donors (nearly 100% to the democrat party).

 
Comment by MightyMike
2012-05-07 14:34:19

“Federal debt exploded during World War II to over 120 percent of GDP, and then began a decline that bottomed out at 32 percent of GDP in 1974. Federal debt almost doubled in the 1980s, reaching 60 percent of GDP in 1990 and peaking at 66 percent of GDP in 1996, before declining to 56 percent in 2001. Federal debt started increasing again in the 2000s, reaching 70 percent of GDP in 2008. Then it exploded in the aftermath of the Crash of 2008, reaching 102 percent of GDP in 2011.

Did you notice the pattern there? The debt-to-GDP ratio rose under Reagan and Bush 1. Then it fell under Clinton. Then it rose again under Bush 2. I read somewhere that it also rose under Gerald Ford and fell under Jimmy Carter. It’s funny that Republicans would try to make an issue of the rise in the debt that has occurred under Obama.

 
Comment by RioAmericanInBrasil
2012-05-07 15:02:20

2 banana, Again, where do you see a massive increase in government the past 30 years? Federal spending is about 24% of GDP now during this “Recession” and up only 3% from a 40 year average of about 21%. Where is “MASSIVE” besides the effects of MASSIVE propaganda from the far right?

Did Obama really make government bigger?
By Tami Luhby @CNNMoney January 25, 2012

CNNMoney takes a look at the facts.

Spending: Government spending as a share of the economy has hovered around 24% during the Obama administration, several percentage points higher than under President Bush, according to Congressional Budget Office data. It’s also elevated from the historical average of 20.7% over the past 40 years.

Much of that increase has come from mandatory spending, including Medicare, Social Security and Medicaid. Those programs have expanded mostly because of the recession, which has prompted more people to apply for Medicaid and Social Security, as well as the growth in people hitting retirement age.

“How much do you lay at the recession’s feet versus the president’s policies?” said Josh Gordon, policy director at the Concord Coalition, a fiscal policy group. “The aging of the population can’t be blamed on the president.”

Many safety net programs, such as Medicaid and food stamps, automatically expand during economic downturns.

 
Comment by Realtors Are Liars®
2012-05-07 15:18:05

Banana on the run.

 
Comment by drumminj
2012-05-07 15:41:25

Total government spending as % of GDP in 2007: 35.09%

Do you realize that government spending is counted in GDP.

Do you not see how that skews such a metric?? and renders it useless for computing the “size” of the government?

 
Comment by ahansen
2012-05-07 15:47:16

Once again the nanners is blowing ethylene out its bung,

Ever since Ronald Reagan broke the air traffic controllers’ union (lessee, that was about 40 years ago) the hold of America’s unions has been steadily eroding in favor of so-called free-market forces.

“Massive”? Are you kidding me? Even with the Boomers joining the work force, union membership across-the-board has been steadily decreasing over the last 30 years until it’s about as irrelevant and ineffectual today as it was before the turn of the 20th century.

As for “massive government regulation” and personal liberty, it was in my lifetime that unmarried persons could not buy birth control, people of color could not eat in public places, single women could not get a hotel room or wear trousers in the workplace–let alone hold managerial positions, school cafeterias only served fish on Fridays, the air in Los Angeles was unbreathable, alcohol could not be sold or consumed in restaurants on weekends, young men were subject to the draft, abortions were illegal, homosexual people were thrown in jail, police beat prisoners with impunity, miscreants were sent to work on chain gangs, only publishers could express their opinions in print, the maximum speed limit was 45MPH, the “illegitimate” were shunned, rock music was the devil’s handmaiden, possession of “pornography” could land you in prison, tax assessors came into your home….

And please tell me how “massive public unions” are any different from the political machines and good old boy networks they replaced?

I’m not sure what America you’re thinking of, but mine is pretty free-wheeling compared to the halcyion days of the 1950’s you seem to long for so much.

 
Comment by Realtors Are Liars®
2012-05-07 16:40:02

P. McCartney/Wings does Banana On The Run

Stuck inside these four walls, in his empty skull forever,
Never trolling no one nice again like you,
Obama you, Obama you.
We’ll never get him out of here,
He never gives a thing away,
He really hates charity.
All he gives is a troll a day
We’ll never get him out of here.

Well, his head exploded with a mighty crash as he trolled another one,
And his first post said to the second one there I think I gotta run…..

Banana on the run, banana on the run. He’s a flim flam man, with another scam, trolling every one…..

Now it’s banana on the run, banana on the run.
Banana on the run, banana on the run.

 
Comment by RioAmericanInBrasil
2012-05-07 16:58:12

government spending is counted in GDP…..Do you not see how that skews such a metric?? and renders it useless for computing the “size” of the government?

Useless? How? Let’s assume GDP is 100 and government spending is 20 of that 100. This means that Gov. spending is 20% of GDP and the non-government spending part of the GDP is 80.

Now if Government spending increases by 50% from 20 to 30 and GDP absent government spending remains at the same 80 then the new GDP is 110 (30+80) and the increased government spending (30) is now 27% of the 110 GDP. (30/110) So in this case, government spending has risen from 20% of GDP to 27%. Does this not mean that government spending has increased relative to GDP even though the government spending is counted in the GDP?

Or if both government spending and GDP minus government spending grow 50% the 80 becomes 120 and the 20 becomes 30 and 30 is still 20% of the total new 150 GDP which means the government spending has NOT grown relative to the GDP even though the government numbers are included in the GDP.

Since Federal spending has averaged about 21% of GDP the past 40 years before this recession, does this not mean that federal spending has not massively grown relative to the GDP for almost the past 40 years?

 
Comment by Bill in Los Angeles
2012-05-07 20:27:05

2banana you rock! You slew those nanny staters Rio and Meathead!

 
Comment by RioAmericanInBrasil
2012-05-07 20:42:37

2banana you rock! You slew those nanny staters Rio and Meathead! Bill in Los Angeles

That’s pathetic Bill and you know it. Either that or you have become delusional. 2banana has not answered my last three posts that posted numbers and charts that disproved his false points. You can’t answer the numbers either. And you just don’t like that do you?

Federal spending has averaged about 21% of GDP the past 40 years before this recession. That means that federal spending has not massively grown relative to the GDP for the past 30 years as 2banana incorrectly asserted. Now these are facts Bill. You just don’t like them.

The difference between you and me Bill is that I’m an entrepreneur who never made a dime off the government while you hypocritically have sucked on the government’s teat almost your entire career in a job supporting wars that your idle Ron Paul says are unconstitutional. All this while you bash your feedbag and act so libertarian. Other than that, you rock too!

 
Comment by Ben Jones
2012-05-07 20:55:01

The current/recent wars are unconstitutional because they are started and waged outside the rules of the constitution. That isn’t in much dispute and it doesn’t really matter who points it out. What the people who do these things say is that the constitution has been superseded by executive authority.

‘Where do you see a massive increase?’

The Pentagon. $12 million an hour in Afghanistan. That’s not a massive increase?

 
Comment by alpha-sloth
2012-05-08 03:46:08

Hard to blame Afghanistan on Obama. I believe it was Bush 2 who got us in there, then got us into Iraq to make it even more fun and expensive.

The difference between you and me Bill is that I’m an entrepreneur who never made a dime off the government while you hypocritically have sucked on the government’s teat almost your entire career in a job supporting wars that your idle Ron Paul says are unconstitutional.

Nailed it. Biggest hypocrite on the blog.

 
Comment by Prime_Is_Contained
2012-05-08 06:56:49

What the people who do these things say is that the constitution has been superseded by executive authority.

What we need to do is chain the executive, with a constitutional amendment that makes it crystal clear that executive authority NEVER supersedes constitutional authority.

 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 12:05:40

One in seven thinks end of world is coming: poll

Attempt to form Greece government fails after shock poll
A woman walks next to election campaign posters of Democratic Left party in Athens May 5, 2012. REUTERS-John Kolesidis
By Renee Maltezou and Lefteris Papadimas
ATHENS | Mon May 7, 2012 1:56pm EDT

(Reuters) - A first attempt to form a new Greek government collapsed in less than a day on Monday after a shock election which left gaping questions over the country’s ability to avert bankruptcy and stay in the euro.

Greeks enraged by the terms of international bailouts which have cut wages, sent unemployment to one of the highest levels in Europe and caused a spate of suicides, deserted mainstream parties in droves in Sunday’s poll, plunging their country into uncertainty.

Antonis Samaras, leader of the conservative New Democracy party which won the biggest share of the vote gave up trying to form a government on Monday night within hours of getting a mandate from President Karolos Papoulias.

His efforts were rebuffed by a string of anti-bailout parties who had benefited from the electoral earthquake which sent tremors across the euro zone.

“It was impossible,” Samaras told reporters. “I handed back the mandate.” The task will now pass to Left Coalition leader Alexis Tsipras, who was catapulted into second place in Sunday’s vote on the back of voter anger over the economic hardship.

Comment by Bill in Los Angeles
2012-05-07 20:33:24

“One in seven thinks the end of the world is coming: poll”

Good! Statistically that would then mean a bible thumping fart with ocean view La Jolla property would agree to let me pay him $0.07 on the dollar for his earthly house so that he can quickly pay admission to heavan’s gate. While shopping, maybe I could also pick up an Incline Village lakeside condo for $0.06 on the dollar so the ex owner can quickly get his ticket to “G”or.

I hate religionists. In case ewe did not know.

Comment by Bill in Los Angeles
2012-05-07 20:34:40

Dang!ticket to “G”od

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Comment by RioAmericanInBrasil
2012-05-07 20:44:37

I hate religionists.

(and math when it disproves your propaganda)

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Comment by Hard Rain
2012-05-07 05:10:52

How clever.

If a picture of a home is worth a thousand words, then what’s a video worth?

Some forward-thinking local real estate agents, realizing that most of today’s home buyers first look at properties online, are upping the ante from the popular 360-degree photo virtual tours by producing professional videos to make their properties stand out.

Campano did just that with a video he produced to market a high-end loft in Chelsea. Titled “Paul Campano — The Most Interesting Realtor in the World,” the video features Campano narrating and starring in a tongue-in-cheek video that depicts him as a suave real estate agent living a ladies-man lifestyle in the loft he’s trying to sell.

Campano is going even further. He has just purchased a miniature flying drone on which he will mount a camera and do an aerial-view video of listings.

http://www.bostonherald.com/business/real_estate/view/20220507if_a_picture_of_a_home_is_worth_a_thousand_words_then_whats_a_video_worthsome_forward-thinking_local_real_estate_agents_realizing_that_most_of_todays_home_buyers_first_look_at_properties_online_are_upping_the_ante_from_the_popular_360-degree_/srvc=home&position=also

Comment by Ben Jones
2012-05-07 05:25:10

What’s up with the sentence long url?

 
Comment by Hard Rain
2012-05-07 05:58:55

I’ll run them through TinyURL in the future..

Comment by Ben Jones
2012-05-07 06:15:01

Actually, I’d prefer it if you didn’t. I was just commenting on that one as I don’t think I’ve seen an extended sentence in a url before.

Comment by Bad Chile
2012-05-07 08:40:02

It’s the Boston Herald. That is actually the entire length of the article.

(Just kidding).

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Comment by Prime_Is_Contained
2012-05-07 13:52:29

That is actually the entire length of the article.

:-) That’s one way to make sure a URL is unique! :-)

 
 
 
 
 
Comment by The UNKNOWN TENANT
2012-05-07 05:11:06

“The optimism extends beyond Zillow. The Sun Sentinel interviewed a dozen builders, buyers, analysts, real estate agents and other local housing observers, and 10 agreed that the region has reached a housing floor”

(How come nobody asked me?)

South Florida housing market has hit bottom, Zillow says

By Paul Owers, Sun Sentinel
May 6, 2012

After six years of historic price declines, South Florida’s housing market has hit bottom.

So says Zillow.com, a Seattle-based real estate website that reports home values aren’t just stable but rising in Miami-Dade, Broward and Palm Beach counties. Prices in South Florida reached their low point at the end of 2011, according to Zillow.

The optimism extends beyond Zillow. The Sun Sentinel interviewed a dozen builders, buyers, analysts, real estate agents and other local housing observers, and 10 agreed that the region has reached a housing floor, despite concern that another wave of bank-owned homes will hit the market.

Prices for existing single-family homes tumbled by more than 50 percent in Broward and Palm Beach counties. Condo values plummeted by more than 60 percent.

With prices back to levels last seen in 2002, demand is strong again, particularly from foreign investors and others willing to pay cash.

As a result, the South Florida market is heating up, real estate agents say.

“It’s still a buyer’s market,” Fischer said. “But sellers are starting to raise their prices a little.”

http://www.sun-sentinel.com/business/realestate/ - 196k

I guess Zillow didn`t read the other headlines on the same page their story was posted on.

Don’t expect loan mod if you can afford mortgage payments

Foreclosure aid program trying to qualify more homeowners

Citizens Property Insurance postpones measure on rate increase

Tidewater Estates: Judge orders mediation in foreclosure case

Comment by turkey lurkey
2012-05-07 07:02:34

Hit bottom? Again? :lol:

 
Comment by Robin
2012-05-07 18:08:52

If we have both net outmigration and increased employment in the housing sector, does that not point towards, at least, a small recovery?

 
 
Comment by Ben Jones
2012-05-07 05:43:55

I just thought of a great app for smartphones. We’ve all heard stories of people walking into things while looking down at their phones. So the new Footpath app would use a new camera located on the top of the phone to stream a video of where the user is headed. No longer will Footpath users have to look where they are going! A companion app called Lookbothways would warn Footpath users that a street is ahead so they can turn to the left and right and avoid being run over by vehicles.

Facebook is developing a plugin whereby friends can watch where the user is walking and like or dislike!

In possibly related news, Google is up $500 million in pre-market trading.

Comment by Realtors Are Liars®
2012-05-07 05:46:06

“Smartphone”.

The inversion is obvious. They make you stupid.

Comment by palmetto
2012-05-07 06:03:29

Wish they had an app to make some of those land whales skinny. There’s a nightmare for you: some land whale plowing into something while concentrating on their cell phone screen.

This weekend I saw what’s got to be the largest. posterior. ever. At least in proportion to the woman’s body. Looked like she had a sack of fighting dogs plastered to her backside.

Comment by In Colorado
2012-05-07 06:28:19

At my former place of employment we had a woman who looked like that. Weird thing is that she wasn’t a pig who constantly ate. As far as I could tell she didn’t eat more than anyone else, unless she did it all at home in evening.

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Comment by oxide
2012-05-07 06:52:23

You don’t need an app. It’s called “stop eating starch.” Humans get by very well on 100g of carb a day, and you easily eat 100g carbs from fruit and veggies alone; really, add it up. There is no room left for starches of any kind, including the “healthy” stuff which is just as bad. Grains and starch screw up your metabolism. That’s why the larger folks stay large even if it looks like they don’t eat. [And stay away from modern vegetable oil (soy/canola). ]

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Comment by alpha-sloth
2012-05-07 07:00:43

And stay away from modern vegetable oil (soy/canola).

What’s wrong with it?

 
Comment by oxide
2012-05-07 07:17:05

Had to look it up at the primal/paleo diet sites: Lots of Omega-6 acids which aren’t as good as omega-3. It’s processed at high temperature which oxidizes the omega-3 and cholesteral, which is also not good. And it’s probably all GMO.

 
Comment by mikeinbend
2012-05-07 08:09:46

Whenever my dad wants to lose weight; he goes Adkins. No pasta, or even carb loaded veggies for that matter.
He still gets to drink red wine and eats fatty meat w/o restriction. He has successfully dieted before; but this one has kept his weight in check for the last few years. If he gains a few; he cracks down on his carb intake. Problem solved; and quickly at that. But it is the lower carb lifestyle that keeps the weight off.

Avoiding carbs begets avoiding carbs….

He says he feels hungry the first couple days of any serious carb cutting regimen, but after that he just is not as hungry so the diet becomes painless to follow.

This has led to a more “carb free” lifestyle in general; he eats carbs much more selectively even when he is not strictly “dieting”. And he weighs the same as he did in highschool, down 40 lbs from his 200 lb peak.

I guess the point is if you can drop the carb intake; the craving for them subsides mercifully. And the extra weight melts away…

 
Comment by Neuromance
2012-05-07 08:41:41

Soy has estrogen-like chemicals in it, or so goes the theory. Unfortunately, so many protein-supplements or protein-enhanced products contain soy. I’d like to see a high-protein bar made of something other than soy one of these days.

http://www.scientificamerican.com/article.cfm?id=soybean-fertility-hormone-isoflavones-genistein

 
Comment by Awaiting
2012-05-07 09:10:17

oxide
I’m on the same page. 8 years ago I was 30 lbs heavier, but because I treaded, I could hide my gut in my clothing. When the doc told me to get an education on carbs to bring down my blood sugar, I went to the bookstore and read my heart out. Fastforward to 2012, I’m 30 lbs lighter, under 100 carbs a day, no gluten or the gluten-free junk foods, and I am healthier, w/normal blood sugar. I don’t eat starch either. You’re spot on and know your stuff.

I loved Dr. William Davis MD’ book “Wheat Belly” (great website as well/interviews/ a fantastic history of GMO wheat.) He’s a Preventive Cardiologist.

 
Comment by polly
2012-05-07 10:41:04

“I’d like to see a high-protein bar made of something other than soy one of these days.”

It’s called beef jerky.

 
Comment by Neuromance
2012-05-07 11:02:54

“I’d like to see a high-protein bar made of something other than soy one of these days.”

It’s called beef jerky.

Price differential: protein bars are like 1-2 dollars, beef jerky starts at like 4-5 dollars typically. Plus, a semi-vegetable-only option makes it an option for a broader range of people.

 
Comment by Anonymous Coward
2012-05-07 11:28:20

Dr. Davis recommends high doses of Niacin, which I find questionable since some studies suggest a link between faulty niacin metabolism (really, faulty excretion would be more accurate) and faulty sugar metabolism and Type II diabetes. Also, he seems like a really nice guy, but he is not the picture of health. Like many things in the human body, metabolism is an extraordinarily complex system, and I’m not convinced he has it all figured out.

I have been fortunate enough to be thin all of my life, and many (certainly not all) of the overweight people I know eat far less than I do. One woman I know seems to try to exist on salad alone. For all the voodoo science out there, I still have not heard a cohesive and comprehensive theory to explain it. Including Taubes’ work.

Low-carb does not help a lot of people. Eating protein alone causes insulin spikes, too. It also causes the release of stress hormones. This can cause some people to start producing too much sugar (our live can make it even if we don’t ingest it). An extreme reaction is pretty rare. but this is why most doctors caution Type II diabetics against going hard-core low-carb without at least closely monitoring blood sugar. And the higher stress hormones are no joke. They affect different people very differently, sort of like coffee. And over time, once the body tires of being over-stimulated in this way, low-carb can “just stop working for me.” I’ve heard this from dieters in the office many times. For some people, this happens sooner than for others. This is why certain long-time advocates for low-carb who were well-known in the community have eventually softened their stance. It not a simple lack of willpower.

 
Comment by oxide
2012-05-07 11:28:35

There are some bars based on nuts (larabars?), but generally if you want non-soy protein you need meat, eggs, or whey powder. Haven’t seen any whey-based bars yet.

 
Comment by Overtaxed
2012-05-07 11:29:55

“I’d like to see a high-protein bar made of something other than soy one of these days.”

It’s actually called whey. :)

 
Comment by Neuromance
2012-05-07 11:53:38

There are whey protein bars out there? That would be pretty fab. When I go to the organic store or vitamin store, I’ll look through the protein bars. One ingredient early on in the list is usually something like soy crisps or some such.

 
Comment by RioAmericanInBrasil
2012-05-07 11:56:10

You don’t need an app. It’s called “stop eating starch.”

If they moved to Rio, I think many could eat all the starch they’d want and still lose weight.

Maybe because it’s hot, you walk a lot and there is no high-fructose corn sweetener in anything?

IDK but I love pasta.

 
Comment by Steve J
2012-05-07 12:35:28

Canola oil stands for Canadian oil, low acid.

One of the few food items that is allowed to be sold under a pseudonym.

It’s actually rapeseed oil.

 
Comment by nickpapageorgio
2012-05-07 14:57:46

The nutrition stuff is cool, but I rarely see exercise mentioned in conversations about obesity and weight loss. I am pretty sure it has a lot to do with the progressive’s war on food…Promoting exercise does not further the cause.

I am glad I went to school when I could get a chocolate milk and small cup of ice cream (remember the little wooden spoons) with my lunch. I was an active kid, we did not have smart phones and the internet, I needed all the carbolicious calories I could get my hands on.

 
Comment by Bill in Carolina
2012-05-07 16:40:34

It has more to do with exercise than with diet. Since we retired and got more active, wifey and I are lighter now than we have been in MANY years. Our diet hasn’t changed- we still enjoy pizza, and a meal of steak, baked potato and salad. I’ll admit the meat portion is smaller now but we don’t leave the table craving dessert. I’m within 10 pounds of what I weighed when I came home from Army basic training. My remaining (3) suits will have to be taken in if I want to wear them again, but I think I’ll only be needing one of them. :-)

 
 
Comment by Robin
2012-05-07 18:10:44

And she may actually paid for the privilege -:)

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Comment by Robin
2012-05-07 18:26:59

We need a Wal-Mart Butt-Reduction App! - :)

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Comment by Hard Rain
2012-05-07 06:02:59

Smartphone drivers keep smartphone pedestrian populations under control.

Comment by turkey lurkey
2012-05-07 07:04:29

ROFLMA

Darwin Award winners.

 
Comment by Prime_Is_Contained
2012-05-07 16:01:25

Awesome. :-)

 
 
Comment by palmetto
2012-05-07 06:13:44

“Facebook”

I worked a local event this weekend. “Buttbook” or “Assbook” is more like it. I swear to jeebus, I dunno what people are eating, but the posterior size of many folks seems to increase by the minute. I haven’t seen so many outsize butts in my life. And basketball guts on men, sheesh.

Comment by Bill in Los Angeles
2012-05-07 06:50:45

One chap with a brontosaurus butt on the plane two rows ahead of me…and a cane. I am sure he could not help it. Probably diabetic.

Comment by Realtors Are Liars®
2012-05-07 06:59:20

The Fat Muffin Man?

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Comment by rms
2012-05-07 07:00:41

About ten years ago I was on a flight that was boarding out of Albuquerque, NM, and they had to ask several over-weight folks to exit because there were not enough seat belt extenders to go around.

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Comment by turkey lurkey
2012-05-07 07:11:14

That’s not “overweight”, that’s obese.

 
Comment by Bill in Los Angeles
2012-05-07 07:33:21

I might be imagining this but fifteen years ago you would hardly ever see two wheelchairs at a gate with a person waiting to board. Now it is common. On one flight I counted four wheelchair-bound people at the gate. At some point it will take 45 minutes to board planes, fifteen to seat the ones who “need extra time to board.” this is getting ridiculous!

 
Comment by oxide
2012-05-07 08:02:54

Baby boomers are fifteen years older now than they were fifteen years ago.

Also, it shouldn’t surprise you, of all people, that more and more people have to move cross-country for jobs and no longer live within driving distance of grandma.

 
Comment by In Colorado
2012-05-07 08:44:44

And it’s cheaper to fly grandma than to fly the whole family to visit grandma.

 
Comment by Montana
2012-05-07 09:24:32

It is weird what’s happening. Everywhere I go the butts get bigger and bigger. I started noticing it about 20 years ago, but it seems to be hitting crisis proportions now.

 
Comment by X-GSfixr
2012-05-07 09:36:52

“Seatbelt extenders”.

What the airlines don’t tell you is that their seatbelts are shorter.

When I fly on the DA900, I can buckle the seatbelt and shoulder harness just fine. On the airlines? I’ve flown, SWA and AA recently, and although I don’t need a seatbelt extender, their belts are significantly shorter.

Sounds like a nice, under the radar revenue producer to me. Keep shortening the belts, and blame the extra fares/charges on your customer being fat.

 
Comment by Bad Chile
2012-05-07 09:42:12

According to a published article (arg, can’t remember when or where) a few years ago; the belief that families are more seperated than ever before is largely a myth. Mobility has always been a characteristic of the so-called “American Dream”.

As for why the great unwashed masses are flying more than ever; just look at the inflation-adjusted prices of flying over the past fifty years. Flying has never been as cheap as it is today. Back in the day you sent a letter a few times a year and a couple phone calls. Now? You fly around with impunity.

 
Comment by Northeastener
2012-05-07 10:15:02

Everywhere I go the butts get bigger and bigger. I started noticing it about 20 years ago, but it seems to be hitting crisis proportions now.

Cramer’s @ssman would be in heaven… Seinfeld

 
Comment by turkey lurkey
2012-05-07 10:24:14

This is true X-GS, but people are also getting fatter and that has been proven in many studies.

 
Comment by aNYCdj
2012-05-07 10:34:43

You start getting over say 300 lbs NYC subways and buses become a challenge very few really obese people use them

Except lawyers with the big briefcase or pull carts….and sloppy female whales…. noticeably absent is males

 
Comment by rms
2012-05-07 11:34:12

As for why the great unwashed masses are flying more than ever; just look at the inflation-adjusted prices of flying over the past fifty years. Flying has never been as cheap as it is today. Back in the day you sent a letter a few times a year and a couple phone calls. Now? You fly around with impunity.

+1 Good observation!

 
Comment by oxide
2012-05-07 11:34:24

Until about 7-8 months ago, I agreed with the conventional wisdom that overweight people or obese people were greedy pigs who stuffed their faces. I don’t believe that now. I, too, read Wheat Belly and am convinced that the new wheat, which is growing so well on the high plains, is a low-level drug, complete with addiction, withdrawal, rationalization, defensiveness, and pushers. Some people are more susceptible than others, and they don’t even know it. I feel kinda sorry for them, but the word IS getting out. Hope it helps them.

 
Comment by X-GSfixr
2012-05-07 11:40:36

“….people are getting fatter……”

WHY is everyone getting fatter suddenly?

From personal experience, I might suggest that our society values profit more than it does health. Especially of it’s employees.

My weight problems started the same time that my former employer figured out it was cheaper to mandate 800-1000 hours/year of overtime, than it was to do what was required to adequately staff their shop.

I’d also like to see a chart comparing sales (in product, not in dollars) of soft drinks vs. obesity rates.

(I worked at MickyDees 1973-75. The “Large” drink at McDonalds of that time is now the “”Small” or “Medium”, and absolutely nobody was selling 32-48-64oz drinks. Please note also that this was the period when they transitioned from the 16oz glass bottle to the 2 liter, and corn sweeteners started replacing sugar)

I remember, circa 1971-72 the big debate the local school board had about letting the soft drink companies put machines in the local schools. The opponents (correctly, as it turns out) predicted that it would lead to a lot less milk and water being consumed.

Their opposition was overcome by the soda companies money, and the “This is a free country” lobby.

IMO, Coke and Pepsi is where all of the cigarette hustlers moved.

 
Comment by In Colorado
2012-05-07 11:45:45

“Now? You fly around with impunity.”

FWIW, the bulk of travelers I see at airports are people flying solo, on business. Not a whole lot of familes. It would cost $1500 for a family of 5 to travel, and that’s if you get the tix on sale.

Airfare might be “cheap” if you’re in the managerial class, but for lucky duckies it’s a small fortune.

 
Comment by In Colorado
2012-05-07 11:52:34

According to a published article (arg, can’t remember when or where) a few years ago; the belief that families are more seperated than ever before is largely a myth. Mobility has always been a characteristic of the so-called “American Dream”.

Hard to say. My wife works at the local public library, and they had to expand the computer room because so many people come to use them to job hunt on Craigslist.

And a lot of those people are migrants who get a library card to use the computers, and who vanish after giving up and moving on to the next town. The number of dormant library cards is staggering.

The days of corporations moving people has definitely slowed down, as it is very costly. Currently I’m part of a geographically diverse team that spans 6 different locations on 3 continents.

 
Comment by In Colorado
2012-05-07 11:53:46

Anyway, if you’re an “individual contributor” and want to relocate to a new job, the chance that you will be paying for that move yourself has increased over the years.

 
Comment by oxide
2012-05-07 12:20:45

X-fixer, there’s a theory that metabolism is affected by cortisol (stress) and lack of sleep. Plus you have no time to make your own meals so you’re stuck with gluten and corn syrup.

 
Comment by Montana
2012-05-07 12:35:15

I just finished Wheat Belly and Davis carefully hedges his language on a lot of points…I’m not convinced. I’m skeptical of any argument that tries to blame a mulitude of ailments on one cause.

But that’s not to say people should be eating all the wheat-based products that have proliferated in the last 20 years. Wheat, corn, rice - lotta bad carbs out there.

 
Comment by turkey lurkey
2012-05-07 12:40:36

Nobody is getting fatter “suddenly”.

Geometric progress just makes things seem “suddenly”.

 
Comment by MightyMike
2012-05-07 12:45:34

FWIW, the bulk of travelers I see at airports are people flying solo, on business.

When I talk to people who travel frequently for business, a lot of the travel sounds unnecessary. I think that people like to get away from the office, or maybe the wife and kids, on a regular basis.

 
Comment by oxide
2012-05-07 13:02:43

Montana — yes, I agree that Wheat Belly is hedged and poorly referenced, but it’s the most accessible to the masses, so to speak. If you want to be blown away by research, try Good Calories Bad Calories (Gary Taubes). Or look up Paleo/primal for something in the middle.

Hedging conclusions is the mark of a true scientist. Every scientist knows that it’s nearly impossible to run all possible controls and therefore any theory can fail at any minute. If you see a bold statement that something is “healthy” that has no qualifiers, it was probably written by a marketer trying to push a product for Big Ag.

When Davis published his book, he was immediately attacked by the Big Ag companies. That alone is a sign that he’s onto something.

 
Comment by nickpapageorgio
2012-05-07 15:08:14

Addictive poison wheat…really? You will get my crusty french bread out of my cold dead hand :) Weight management is very simple, calories in/calories out, that’s it.

 
Comment by Neuromance
2012-05-07 15:23:39

I also think it’s a question of preservatives. If environmental bacteria can’t eat a food product (if it doesn’t go bad), what chance have gut bacteria to do so? I’ve read a variety of articles suggesting that gut flora do play a role in digestion and nutrient extraction. So, if someone is not getting the nutrients they need, they’re naturally going to feel hungry till they do get them.

Not saying it’s the whole issue, but one of the likely perfect storm of multiple factors leading to the national obesity problem.

 
Comment by oxide
2012-05-07 17:12:57

Weight management is very simple, calories in/calories out, that’s it.

No. From mid-January to the end of March this year, I experimented by eating the same thing every day. Eggs, ground beef, chicken soup, vegetable and butter. Lots and lots of butter — I even had hot cocoa made with butter instead of milk. I ate 200 calories MORE per day than I had been eating before. I didn’t exercise AT ALL (tendonitis). And I LOST 3 pounds. 3 pounds doesn’t sound like a lot, but I’m petite and I was very nearly underweight to begin with.

 
Comment by Bill in Los Angeles
2012-05-07 20:46:27

I am not kidding here (i am bragging of course) but I weigh in under 160 lbs (skinny legs), but I am a swim fanatic of well over 3200 yards on alternate days and do that within one hour. I am 52. A 76 year old friend in Phoenix puts me to shame. He places in the senior olympics and swims faster than most 30-somethings. If you were not looking close you would guess he is in his 30s.

I was a fat kid from age five to 17, then for a year in my late 30s due to a wonderful girlfriend who was an incredible cook. I came home every night to an awesome restaurant of one table and before I knew it, ballooned to 195 lbs. A picture of me was all it took for me to reduce again. She was not hurt by my dietary chqbpnge. I still love her!

 
Comment by ahansen
2012-05-07 23:18:19

Oxy,

Muscle weighs more than fat. You lost muscle, you added fat. Try that diet for a year and you’d gain 12-15 pounds. (6500kcl=1lb).

Nick’s right on this one (but then he’s always…right). Calories in =<calories burned, and you’ll lose weight. Period.

 
Comment by oxide
2012-05-08 05:26:32

ahansen, nick, bill, I’m sorry, I don’t believe you.

Weight has some dependence on what you eat minues what you burn, but what you burn depends a lot more on how much you exercise.

If I lost muscle during that time, then must have lost abs muscle because that’s the part that was thinner. Everything else looked about the same. Without exercising.

 
Comment by Montana
2012-05-08 06:18:50

Oxide, I’ve read all of taubes’ stuff..been on low carb since july.

 
Comment by Bill in Los Angeles
2012-05-08 06:47:07

When you see veins under the skin where your belly is, you don’t have much body fat. I lifted weights a lot years ago and still lift enough to maintain muscle. How’s several sets of 25 pushups sound? I total at least 160 pushups every other morning.

 
 
 
Comment by turkey lurkey
2012-05-07 07:07:29

Throughout history, that’s usually one of the signs your population has a very long way to go before they feel enough pain to want to change their society for the better.

Hunker down, there’s at least another generation to go before we see any real reform of the FIRE mafia. It will be a lot thinner generation.

 
 
Comment by In Colorado
2012-05-07 06:25:45

The scary thing Ben, is that your tongue in cheek apps almost make sense.

Comment by palmetto
2012-05-07 06:40:21

Almost? It’s spot-on!!!!!!!!!

Comment by Bill in Carolina
2012-05-07 07:30:18

Having a view of what’s ahead on the screen would block/interfere with whatever the user was doing at the moment. A large pop-up warning might be more appropriate, such as “OBSTRUCTION!” or “TRAFFIC!”

I can even envision a smartphone maker being sued when someone gets hurt/killed because the phone didn’t come with the necessary additional cameras or sensors and the app all ready to go.

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Comment by goon squad
2012-05-07 06:47:04

WRT facebook, nobody born after 1980 can do anything without seeking and receiving some kind of external validation. Facebook is the perfect answer for the products of helicopter parenting.

Comment by In Colorado
2012-05-07 09:16:18

Facebook is the perfect answer for the products of helicopter parenting.

I don’t know about that … kids have always sought the approval of their peers.

 
 
Comment by Professor Bear
2012-05-07 07:16:23

FB = Facebook

Buy at your own risk.

True confession: I thought the IPO price of Google was way out of line, but it ended up making even those who did not get in on the IPO wealthy enough if they bought the stock during the first year of the company’s existence.

But there is no guarantee another company will innovate to the degree Google has.

Comment by Bill in Los Angeles
2012-05-07 07:36:24

I was skeptical myself about Google until I bought my Droid. I was skeptical about LinkedIn, but it is my favorite social network site now. I am very skeptical about Facebook -which I secretly hate, but have to use, since some relatives of mine only comma irate through FB.

Comment by Professor Bear
2012-05-07 07:49:29

“…which I secretly hate…”

It’s worse if you have to watch your kids waste all their potential study time updating their FB status.

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Comment by Realtors Are Liars®
2012-05-07 08:22:42

“It’s worse if you have to watch your kids waste all their potential study time updating their FB status.”

BINGO

What fawkin’ waste of time. Facebook is akin to every a$$wipe getting his/her own TV show broadcast to the world that nobody watches.

 
Comment by azdude
2012-05-07 08:23:06

is facebook and ponzi scheme like groupon?

 
Comment by azdude
2012-05-07 08:24:34

My bad

Is facebook another ponzi scheme like groupon?

 
Comment by In Colorado
2012-05-07 08:46:07

How much more can facebook grow? It seems that every kid with access to a PC already has a facebook account.

 
Comment by oxide
2012-05-07 08:47:48

How is groupon a ponzi scheme? Genuine question, I really don’t know the answer.

 
Comment by polly
2012-05-07 09:00:15

Groupon isn’t a ponzi scheme as far as I can tell. It is a marketing idea with limited utility. The store/serivce provider has to provide a huge amount of good/services for 25% of their normal income and while they might cultivate repeat customers, they won’t if their ability to provide good quality falls apart because of the volume.

I’m not signed up for groupon but I get similar e-mails from Amazon and AAA and I don’t even think the stuff is a good deal at 50% (sometimes more) off. I don’t think I’ve ever been seriously tempted to try one of the offers. I know I’ve never used one.

 
Comment by In Colorado
2012-05-07 09:17:35

Facebook is akin to every a$$wipe getting his/her own TV show broadcast to the world that nobody watches.

A world where everyone is a mini-Kardashian?

 
Comment by Realtors Are Liars®
2012-05-07 09:28:51

BINGO.

Even Aunt Mildred. GET A LIFE!!!!!

 
Comment by SDGreg
2012-05-07 10:10:56

“What fawkin’ waste of time. Facebook is akin to every a$$wipe getting his/her own TV show broadcast to the world that nobody watches.”

It’s a tool. It depends on what you do with it.

Through my union’s Facebook page, we now know a lot more about what’s happening in our agency just by exchanging information. It’s mostly very bottom up. Often we know a lot more about what’s happening than local management.

As for my employer’s use of Facebook, I view that as a lot less useful.

 
Comment by Northeastener
2012-05-07 10:21:04

Facebook is akin to every a$$wipe getting his/her own TV show broadcast to the world that nobody watches.

It’s called “the long tail” and there are benefits: Music and entertainment can be consumed (and tailored) for individual preference. It’s not about “mass market”, it’s about niche market.

It’s why Amazon eats “brick and mortar’s” lunch…

 
Comment by turkey lurkey
2012-05-07 10:25:36

“Facebook is akin to every a$$wipe getting his/her own TV show broadcast to the world that nobody watches.”

POTD

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 10:27:31

“What fawkin’ waste of time.”

It will be impossible to quantify the damage to the U.S. economy from kids spending their free time posting to FB, but I am convinced the damage will be large and lasting.

 
Comment by Northeastener
2012-05-07 10:43:47

It will be impossible to quantify the damage to the U.S. economy

This is just one more step towards the virtualization of life… when the virtual economy and virtual life overtakes and becomes the real. Read William Gibson or Neal Stephenson for an idea of what I’m talking about.

Like most things, this will hurt the parts of the economy that can’t/won’t adapt. But it will create other opportunities…

 
Comment by rms
2012-05-07 11:38:22

…mini-Kardashian…

Oxymoron?

 
Comment by In Colorado
2012-05-07 14:36:45

Mini as in marketshare and not the size of their butts. :-)

 
 
Comment by In Colorado
2012-05-07 08:05:11

It’s my understanding that google doesn’t make all that much money off the Droid OS, and that the lion’s share of their income is from placing advertising on other people’s web pages.

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Comment by Northeastener
2012-05-07 10:24:48

Google doesn’t make all that much money off the Droid OS

Google understands that mobile advertising is it’s future and also understands that the easiest way to ensure domination in that space is to have the largest installed base of phone OS’s. They don’t need to make money on the OS when they own the underlying ad network. It’s why they opened up their App marketplace, unlike Apple… They want as many free apps as possible to piggyback their mobile ads on.

 
 
Comment by mikeinbend
2012-05-07 09:09:40

My daughter’s classmates incriminate themselves on facebook all the time. Rat themselves out. Our resident crip posted this about last weekend “last night was crazy. Threw up three times and woke up today with a monster headache. I don’t remember most of it”. Scary but easy enough to see who is acting up cuz they just gotta brag.

This same boy got in trouble for smoking weed with some of his buddies and bragging of it. I think my daughter was the snitch in that case.

She also snitched on her brother; who is in fifth grade and apparantly has been buying Monster’s at the skating rink. Against his mom and my strict instructions not to. Peer pressure is running strong. Funny thing is that most of his friends also have been getting Mohawk hair-dos
Pretty funny that sporting the anti-establishment “I beat to my own drummer” look is simply conforming. On the soccer field, this has caused their efforts to look different make them all look the same! Except my son who is not getting one(he is trying to blame his parents but the fact of the matter is we are tired of hair hanging/covering his face so would welcome the change. Even though we probably could not stand for the ‘hawk for more than a few days

Also I heard on NPR yesterday (pretty interesting the monitering of social networking means it follows you wherever you go, and it is an increasing presence in civil lawsuits such as divorce. In one case, the Hubby said once on myspace “I hate kids”. His proclaimation, whether made in jest or in seriousness, when the Hubby was 16 or whenever, influenced judges custody decision).

Also folks applying for jobs are pulling down their FB pages prior to applying. However, the company they are applying to may have enlisted the services of a data mining company that can find your page (something about being able to find the last seven years of public postings regardless of the fact that the applicant took down his/her page). Big brother is here!

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Comment by turkey lurkey
2012-05-07 10:38:53

Facebook is the domestic spy system the CIA could only dream about.

 
Comment by Realtors Are Liars®
2012-05-07 11:30:58

All you fakebook users…… don’t forget to inform the world about your Aunt Mildred’s bunion operation.

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 12:11:00

“My daughter’s classmates incriminate themselves on facebook all the time. Rat themselves out.”

My daughter and her friends have similar issues.

 
Comment by Northeastener
2012-05-07 12:36:38

All you fakebook users…… don’t forget to inform the world about your Aunt Mildred’s bunion operation.

And get off my lawn!

 
Comment by Northeastener
2012-05-07 12:43:56

All you fakebook users…… don’t forget to inform the world about your Aunt Mildred’s bunion operation.

Funny thing about Facebook and most every other social media technology… it’s all about the content.

I posted a video of my 8yo daughter shooting daddy’s AR15 at the range Sunday (the first such video and only the second time she has shot). I was able to upload that video to Facebook once and share it with my entire family, my wife’s family, and our friends. Seem like a waste of time? That’s called community and maintaining a connection with people we want involved in our life…

That’s not to say everything posted on facebook is worthwhile, but like anything else, value is subjective and often based on what you put into it.

 
Comment by Realtors Are Liars®
2012-05-07 13:32:27

lmao

 
Comment by turkey lurkey
2012-05-07 14:11:42

Like said, the CIA could only DREAM about.

 
Comment by RioAmericanInBrasil
2012-05-07 14:13:24

a video of my 8yo daughter shooting daddy’s AR15 at the range

Enjoy this time in her life. They grow up so fast….

 
Comment by Northeastener
2012-05-07 14:28:58

Indeed. Truly a gift… and it makes weathering the infant/toddler/teen stages so much more bearable.

 
Comment by Bill in Los Angeles
2012-05-07 20:51:42

MikeInBend,

They should all shave their heads net to be different. Oh wait!…

 
Comment by Bill in Los Angeles
2012-05-07 20:52:59

“next”

 
Comment by ahansen
2012-05-07 23:30:19

“…a video of my 8yo daughter shooting daddy’s AR15 at the range.”

Isn’t that adorable?! I can’t wait to have grandbabies so I can teach them how to skin marmots and eat them raw!

 
Comment by Prime_Is_Contained
2012-05-08 07:09:19

I can’t wait to have grandbabies so I can teach them how to skin marmots and eat them raw!

LOL, Allena! :-)

 
 
 
 
Comment by Northeastener
2012-05-07 09:38:46

I just thought of a great app for smartphones… So the new Footpath app…

WalkSafe: A Pedestrian Safety App for Mobile Phone Users
Who Walk and Talk While Crossing Roads

Sorry. Looks like the fine young students enrolled in Dartmouth Comp Sci are already working on it…

Comment by Ben Jones
2012-05-07 09:57:50

See, I thought the idea would spotlight the silliness of walking around and looking down all the time. What’s the point of watching a video of what’s right in front of you?

Comment by Northeastener
2012-05-07 10:11:42

This is a “The Onion” moment, a.k.a. truth is stranger than fiction…

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Comment by turkey lurkey
2012-05-07 10:40:56

Because you can’t fix stupid.

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Comment by nickpapageorgio
2012-05-07 15:53:36

These people are also going to be in for a hell of a chiropractic bill in the not too distant future.

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Comment by Blue Skye
2012-05-07 05:53:01

I’m drifting the High Plains. I really cannot report on the number of For Sale signs. The houses are all too far away to tell.

The wheat is doing well.

Comment by scdave
2012-05-07 07:20:06

The wheat is doing well ??

Must be the fertilizer…

Comment by butters
2012-05-07 07:33:44

Or GM.

 
Comment by scdave
2012-05-07 07:39:33

Same government juice for both…

 
Comment by oxide
2012-05-07 08:04:08

Global warming.

Comment by Blue Skye
2012-05-07 11:33:58

City kids. Winter wheat.

Kansas looks pretty green after La Junta.

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Comment by Professor Bear
2012-05-07 07:18:57

DJIA = 13K or bust!

Market open 12,993.24

Change -45.03 -0.35%

Volume 26.84m

May 7, 2012 10:18 a.m.

Previous close 13,038.27

Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 09:26:14

Whose job is it to prop up the DJIA above 13K when the market faces headwinds (like today)?

Comment by Northeastener
2012-05-07 10:05:31

That would be the President’s Working Group for Financial Market’s, otherwise known as “the Plunge Protection Team”.

Comment by butters
2012-05-07 11:24:09

They are out in full force today.

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Comment by Bill in Carolina
2012-05-07 07:50:01

Here’s an easy-to-use site that shows current commodity prices and 1-month and 1-year history charts. Except for feeder cattle, which appears to be in a bubble, prices are mostly down YOY from a little to a lot. Corn is down so it’s a bit cheaper to fatten cattle than it was a year ago. Looks like we’re gonna “eat mor chickn” and pork for a while.

http://money.cnn.com/data/commodities/?iid=MKT_Sub

Comment by BlueStar
2012-05-07 08:50:08

After the drought last year herd size was cut over 50%. At the time they thought it would take years to recover *if* we don’t have another dry year.

“Jeff Goodwin, grazing land specialist with the Grazing Lands Conservation Initiative, cautions ranchers not to be in a hurry to restock their herds. The initiative, under the U.S. Department of Agriculture, is tasked with developing conservation plans with ranchers.

“Last year was a tremendous drought,” said Goodwin. “We’ve grown a lot of grass, but it’s mostly cool season annual grass, such as rye grass. A lot of people had to destock because they ran out of grass and water.”

In 2011, the drought had $5 billion price tag — about $2.1 billion in livestock and $3.1 billion in crop losses, according to the AgriLife Extension Service.”

 
Comment by Neuromance
2012-05-07 15:26:14

The 2 year La Nina is over. That should create some weather-pattern changes, possibly bringing rain to the south:

http://miami.cbslocal.com/2012/05/03/noaa-2-year-long-la-nina-is-over/

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 07:55:23

Whatever happened to the gold bug trolls who used to post here with news that paper is worthless? It seems they are a scarce breed these days.

May 7, 2012, 10:37 a.m. EDT
Gold down as dollar rises on European elections
France elects new president; Greeks rebuke mainstream parties
By Claudia Assis and Polya Lesova, MarketWatch

SAN FRANCISCO (MarketWatch) — Gold futures dropped on Monday, as the U.S. dollar rose against major rivals after voters in France and Greece delivered a rebuke to parties supporting austerity measures.

Gold for June delivery GCM2 -0.65% fell $6.30 to $1,639.50 an ounce on the Comex division of the New York Mercantile Exchange.

The losses for the metal came as the U.S. dollar index DXY +0.20% , which measures the performance of the greenback against a basket of other currencies, rose to 79.617 from 79.468 late Friday.

Strength in the dollar puts pressure on dollar-denominated commodities because it makes them more expensive for holders of other currencies.

“A firmer U.S. dollar, which rose significantly against the euro in the wake of the elections in France and Greece at the weekend, is weighing on [the gold] price this morning,” Commerzbank analysts said in a note.

Comment by In Colorado
2012-05-07 08:02:43

I sure wish I had bought some Au a few years ago.

Comment by In Colorado
2012-05-07 08:50:05

…you know, when gold was $800 and the cash is king crowd was predicting its imminent collapse.

Once QE3 is announced I expect we’ll see commodities like oil and gold resume their ascent.

Comment by Northeastener
2012-05-07 09:58:10

Look at it from this perspective: Gold is up in euros…

In the land of the blind, the one-eyed man is king… that seems to be king dollar right now.

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Comment by RioAmericanInBrasil
2012-05-07 12:14:23

Gold is up in euros…

Gold is bouncing around its all time high in Brazilian Reals.

 
Comment by Northeastener
2012-05-07 14:34:06

Gold is bouncing around its all time high in Brazilian Reals.

What kind of inflation are you experiencing in Brazil?

 
Comment by RioAmericanInBrasil
2012-05-07 14:41:27

What kind of inflation are you experiencing in Brazil?

Officially it was 6.5% in 2011 and it’s about a 4.5%-5.5% forecast in 2012.

Reuters) - Apr 24, 2012 Inflation in Brazil rose slightly more than expected in the month to mid-April, breaking with an easing trend that allowed the central bank to focus on stimulating growth by cutting interest rates to near record lows.

…..In the 12 months to mid-April, prices rose 5.25 percent, below the 5.61 percent increase to mid-March, but nearly stable from the 5.24 percent gain to the end of March.

Brazil’s government targets annual inflation rate at 4.5 percent, with leeway of plus or minus 2 percentage points.

As the annual inflation rate has eased from a seven-year high of 6.5 percent in calendar year 2011, the central bank has shifted its priority from curbing inflation to stimulating the economy, which nearly fell into recession in the second half of 2011.

The bank slashed its benchmark interest rate to 9 percent last week, just above an all-time low, and gave hints that more cuts will come……

http://www.reuters.com/article/2012/04/24/us-brazil-economy-inflation-idUSBRE83N0MZ20120424

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 12:08:34

“Once QE3 is announced I expect we’ll see commodities like oil and gold resume their ascent.”

It seems clear that gold’s further ascent depends on whether QE3 happens. If you think QE3 is ‘in the bag,’ why not buy some physical today as insurance?

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Comment by In Colorado
2012-05-07 12:29:27

It is tempting

 
 
Comment by Bill in Los Angeles
2012-05-07 20:59:25

Channeling Combo! How is that greenback working out for ya?

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Comment by ahansen
2012-05-07 17:16:25

Our resident goldbug is probably laffing his arse off in Lake Wanaka today. Au was in the 700’s when people here (I’m looking at you, fussypussy) started hounding him. I miss lad’s cheerful observations and thoughtful insights, and hope he sold out for a fortune. I learned a great deal from his posts.

We are diminished by his absence.

Comment by Prime_Is_Contained
2012-05-08 07:17:49

We are diminished by his absence.

+1.

 
 
Comment by Bill in Los Angeles
2012-05-07 20:55:11

I am winding up my pitch to buy PMs within the next twelve months. I am underweighted by about five or six ounces of gold.

 
 
Comment by Realtors Are Liars®
2012-05-07 08:29:57

“I just updated my facebook status…. hey… Aunt Mildred posted that she’s got a bunion and it hurts.”

Me: WGAF

Comment by oxide
2012-05-07 08:48:52

If you DGAF, then why did you look up Aunt Mildred’s FB page in the first place?

Comment by Realtors Are Liars®
2012-05-07 09:12:58

Don’t have facebook. All I hear is others discussing it.

Nice try though. ;)

 
Comment by In Colorado
2012-05-07 09:19:04

Actually, FB will send you emails notifying you that others have updates on their walls. I simply stopped looking because 99% of the time it’s inane.

Comment by Montana
2012-05-07 09:33:15

yeah all the fools who used to email nothing but forwarded jokes and conspiracies now repost the same shiite on FB. I defriended an old colleague who started reposting all these “don’t cut my Social Security!!1!!” messages.

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Comment by butters
2012-05-07 10:30:56

Exactly my issues with FB. I didn’t have the heart to defriend anyone. Instead I checked out of FB permanently. Don’t miss an thing.

 
Comment by sleepless_near_seattle
2012-05-07 11:32:02

Don’t you mean, “Keep your gov’t hands off my SS” messages?

I finally had it out in front of friends and family on FB with the BP agent a few weeks ago. He kept posting his anti-Socialist, pro-austerity rhetoric.

He never did get around to answering how his comments square with his public salary and his ability to retire at full salary on the taxpayer dole at age 50, while those of us in the private sector look over our shoulders daily at the possibility of being right-sized or off-shored.

Nope, he didn’t do that. But he (and all of his FB thumbs-uppers) did, as a self-proclaimed conservative, go all in on Romney, in spite of me pointing that candidate’s propensity for unconstitutional healthcare bills and right-sizing of companies. Hypocrites. All I can say is, be careful what you wish for…

 
Comment by Montana
2012-05-07 12:39:41

I was resisting the urge to remind my friend how he’d worked off the books for so many years. LOL

 
Comment by sleepless_near_seattle
2012-05-07 13:03:03

I was too, Montana. I finally couldn’t take the hypocrisy anymore. Now that I’ve jumped the fence, I find it’s really easy to point it out. Practice makes perfect, and it comes naturally now! :-)

 
Comment by sleepless_near_seattle
2012-05-07 13:13:35

Oh, one more note. Instead of recognizing his own folly, he deflected and accused me (after I said I was voting for a write-in candidate) of giving BO a de facto vote.

When I pointed out that if my candidate didn’t exist I still wouldn’t vote for either of the MSM appointed candidates, so that my vote actually has net zero effect on the election, all I heard was crickets…or should I say hypocrickets?

 
Comment by Bill in Los Angeles
2012-05-07 21:06:06

I have relatives, one of which is very Romneyish and against Obamacare (but not Romneycare?) and worked only one year in his 36 year life, lives at home with impoverished helicopter mom.

I have an ex girlfriend, I admit a berry fun woman who is not pretentious who posts “progressivism” all the time.

In both cases it is al, broadcast.

I am not inspired at all by Facebook. I am more annoyed at the fact that Facebook merely accentuated the issues I disagree with from my relative and ex. Thanks FB!

 
Comment by ahansen
2012-05-07 23:39:08

Hypocrickets. Excellent, sleepless!

 
Comment by sleepless_near_seattle
2012-05-08 00:09:28

Cheers, a!

 
 
 
 
 
Comment by 2banana
2012-05-07 08:36:09

The labor participation rate is back where it was in December 1981

No one believes we are at 8.1% unemployment rate.

This recession we are in is doing nothing but getting worse - who is going to buy a house?

————–

The Vanishing Workers
Wall Street Journal | 05/07/2012

The economy turned in another lackluster month for job creation in April, with 115,000 net new jobs, 130,000 in private business (less 15,000 fewer in government). The unemployment rate fell a tick to 8.1%, albeit mainly because the labor force shrank by 342,000. This relates to what is arguably the most troubling trend in the April jobs report, which is the continuing decline in the share of working-age Americans who are in the labor force.

The civilian labor participation rate, as it’s known, fell again in April to 63.6%. That’s the second decline in a row and the lowest rate since December 1981. That’s right—more than 30 years ago, longer than Mark Zuckerberg has been alive. The nearby chart shows the disturbing round trip the workforce participation rate has taken since 1980 and the precipitous drop in the last three years.

This decline is highly unusual coming out of a recession. Normally as hiring picks up, more Americans see more job opportunities and jump back into the labor force. That’s what happened after the sharp recession of 1981-82, when the participation rate last hit 63.6%.

It rose smartly through the boom of the 1980s to a peak of 66.8% in January 1990. The rate dipped to 66% in the mild 1991 recession, but then rose again through the 1990s to a modern peak of 67.3% in January 2000 at the top of the dot-com bubble.

The last decade has never reached the same heights, though the participation rate did rise back to 66.4% in late 2006 and early 2007. The rate fell to 65.7% in July 2009 when the last recession officially ended, yet the distressing fact is that it has kept falling over the course of the next 33 months of ostensible economic recovery.

Comment by turkey lurkey
2012-05-07 10:43:09

UE WAS 10%.

’nuff said.

 
Comment by In Colorado
2012-05-07 11:35:34

That’s what happens when you steadily offshore jobs over a 30+ year period, all in the name of “the consumer”.

Comment by X-GSfixr
2012-05-07 12:00:24

The UE rate is a lot easier to manipulate than the “participation rate”.

I love the new talking points about all of the new “fraud” in Disability claims.

What I’m seeing is that people who could claim disability were actually working, and have been thrown under the bus. In an environment where even healthy 20 year olds can’t find work, nobody is hiring 40 year olds with pre-existing conditions.

So many of them are finally claiming disability that they have been able to claim, but chose not to. They are out of options, so they “retire” early, or claim “disability” if they are where they can claim it.

Comment by In Colorado
2012-05-07 12:03:59

What I’m seeing is that people who could claim disability were actually working, and have been thrown under the bus

Agreed. Americans have an incredible work ethic. Plus they don’t expect:

Single payer heathcare
Paid time off
Low cost higher ed
Pensions
etc.

But yeah, if the rug is finally yanked out from under you, you will do whatever it takes to survive. And if the safety net is removed, what is the logical outcome?

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Comment by 2banana
2012-05-07 08:42:59

And yet we are striving to be just like Argentina…

—————————-

What’s Wrong with Argentina? A quick tour of the country tells us the story clearly.
National Review | 05/07/2012 | Matthew Schaffer

Inequality yawns and gapes in this class-conscious city — the rich are showily rich, the poor are visibly poor, and the middle class work hard to keep up appearances. This despite the fact that Buenos Aires has historically proclaimed its commitments to socialism and unionism and its aversion to “Anglo-Saxon capitalism.” There is in this country a kind of grasping at wealth and an ostentation in the display of it, precisely because wealth is transient, not reliable or dependable, and liable to unpredictable confiscations by the state — a lesson lately reinforced by the experience of the Spanish owners of YPF.

In one word: inflation. Private estimates put Argentina’s annual inflation rate somewhere around 25 percent. (The government’s official number is closer to 10 percent, and it fires bureaucrats who disagree.) On the city’s restaurant menus, prices are listed on removable rectangular stickers, which are replaced with upwardly revised prices every couple of months at least. Jake’s mistaken perception that the place was muy cara illustrates the basic problem with inflation: a constant surprise at how expensive things have become and a constant uncertainty about what things are really worth, which cause people to defer purchases and economic decisions in thousands of small ways that, in the aggregate, rot an economy from the inside. High inflation was the norm in Argentina for most of the 20th century and was renewed in the 21st as President Kirchner steadily eroded the Argentine Central Bank’s independence, using its printing presses to reward friends and paper over the government’s growing debt.

Strikes are a regular feature of Argentine life. Municipal employees’ unions in Buenos Aires shut down the city’s transportation system fairly regularly — a pain for tourists and international businesspeople. Argentina’s public-sector unions have been costly. They were largely responsible for the country’s latest economic disaster, its 2001 default. In that year, President Fernando de la Rúa had attempted to cut public expenditures sufficiently to satisfy Argentina’s creditors, but the public unions threw such a spectacular fit on the streets of Buenos Aires that the international bond markets decided that reform was politically impossible. Capital fled from Argentina; interest rates soared; and a decade of economic progress for the country was erased by humiliating and devastating default, which has left the country with punishingly high interest rates to this day.

Argentina’s nationalization of YPF — which will win support from all of the country’s major political parties, and the cheers of the public — makes economic sense for the country in the short run, which is exactly why it is being undertaken. Argentina will appropriate natural resources and their cash flows. Only foreigners, mostly Spaniards, will get screwed. In the short run, it’s a free lunch for Argentina. The problem is, the seizure is also a return to the political and economic unpredictability that has ruined Argentina’s chances for prosperity over the past century. What foreigner will invest in the country now (and Argentina desperately needs such investment), in the wake of such a theft?

Comment by turkey lurkey
2012-05-07 10:44:37

Same problems we have here.

 
Comment by In Colorado
2012-05-07 12:07:49

Is anyone really advocating the nationalization of industry? I sure haven’t heard Obama call for the nationalization of big oil, or any other industries. There is fannie and freddie, but they exist for the benefit of the banksters.

Comment by sleepless_near_seattle
2012-05-07 13:40:56

Isn’t that the rub, regarding oil? When I point out that US Presidents don’t set gas prices, they say that we should drill, baby, drill (and frack, baby, frack) and not allow for any export of oil. “It’s our oil and we could lower prices by only selling it within the US,” they say.

To which I respond: That would mean that you’d prevent private US oil companies from selling on the open market. Wouldn’t that effectively be nationalization?

Not sure if my talking points are correct, but they don’t like being backed into that one.

Comment by Prime_Is_Contained
2012-05-08 06:52:40

Not sure if my talking points are correct

It’s not a bad interpretation, sleepless… It seems like at least a partial nationalization, if you are not allowed to sell your product at a price set by the market.

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Comment by 2banana
2012-05-07 14:21:32

The ENTIRE Health Care Industry???
GM???
Chrysler???
Banks???
Freddie and Fannie???

Shall I go on?

 
Comment by nickpapageorgio
2012-05-07 16:16:12

Maxine Waters while speaking to oil company executives:

“Guess what this liberal would be all about? This liberal will be about socializing…uh, um…Would be about, basically, taking over, and the government running all of your companies.”

 
 
 
Comment by 2banana
2012-05-07 08:44:18

Americans: Too broke to go bankrupt
Yahoo | 5/7/12 | Blake Ellis

This year, hundreds of thousands of Americans are expected to be too broke to file for bankruptcy. The average cost to file for Chapter 7 bankruptcy protection, the most common form of consumer bankruptcy, is more than $1,500, according to recent research submitted to the National Bureau of Economic Research.

As a result, anywhere between 200,000 and one million consumers are estimated to be unable to afford that steep cost this year. The research, conducted by a group of professors from Columbia University, the University of Chicago and Washington University in St. Louis, examined how bankruptcy filings spiked after people received their tax rebates in previous years. They estimate that another 200,000 consumers, who would otherwise not have enough money to file, will use their tax refunds to pay for bankruptcy this year.

“For lots of people, bankruptcy has been taken off the table as an option because of the severe fees involved,” said Jialan Wang, co-author of the report. Among those fees is a charge of about $300 just for filing the paperwork with the federal court, while the rest typically goes to bankruptcy lawyers, said Wang. And there are other expenses on top of that, including fees for mandatory pre-bankruptcy credit counseling and a pre-discharge debtor education course. These average about $85 altogether, according to a recent study sponsored by the American Bankruptcy Institute.

That means many of the Americans who have seen their debt snowball out of control due to events like job loss, foreclosure or a medical emergency during the economic downturn are now left without their last financial lifeline, she said. “It becomes harder and harder to pay off the debt as interest payments get higher, so your debt grows larger and larger,” she said.

Comment by turkey lurkey
2012-05-07 10:45:49

…and the FIRE sector knew this when they lobbied to change the bankruptcy laws in the previous decade.

Comment by rms
2012-05-07 11:52:45

bankruptcy

Many practiced serial bankruptcy before the change in law.

Comment by In Colorado
2012-05-07 12:04:59

I believe that it’s still possible, only the waiting period has increased.

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Comment by turkey lurkey
2012-05-07 14:16:53

True rms, but why did they also punish regular people?

Rhetorical question: their computer models showed the coming wave of financial collapse (after all, they helped to created) and the golden opportunity to enslave people who hit hard times through no fault of their own while at the same time, minimizing their own bad judgement in investments and lending.

And it worked, didn’t it?

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Comment by nickpapageorgio
2012-05-07 16:19:28

“…and the FIRE sector knew this when they lobbied to change the bankruptcy laws in the previous decade.”

I actually agree with your statement. That was one of the biggest a$$ poundings ever handed to the middle class by congress, and the timing was perfect for the banks…peak debt.

 
 
Comment by WT Economist
2012-05-07 12:50:36

Americans are too broke to take a vow of poverty.

http://lifeinc.today.msnbc.msn.com/_news/2012/05/02/11488298-student-loan-debt-delays-dream-of-becoming-nun?lite

“Nicole Ferko’s $60,000 in student loans made her put off her dream of becoming a nun for a decade. Ferko, who lives in Grand Prairie, Texas, graduated from a private Ohio Catholic university in 2002 and walked away with a huge loan burden. ‘I knew I wanted to give my life to God, but I expected after college I’d go right in and work toward becoming a sister,’ she said. But she discovered that individuals looking to become priests or nuns need to be debt free.”

Comment by The_Overdog
2012-05-07 13:30:13

You have to pay $60k to become a nun? Huh. You learn something new everyday.

Comment by In Colorado
2012-05-07 14:32:45

No, that’s not what the article said. She got 60K into debt pursuing her BA degree, then tried to become a nun. She was turned away because of her student loan debt.

The reason is the following: when one joins a religious order, one turns over any assets to the order (the voiw of poverty).

In exchange, the order becomes resposible for you, and that includes any debts you might incur (say a hospital bill). Since she had a student loan the religious order would have to assume it, hence why they want you to be debt free when you take your vows.

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Comment by Prime_Is_Contained
2012-05-08 07:21:16

Since she had a student loan the religious order would have to assume it,

I don’t see any legal reason they would have to assume it. They could instead leave it unpaid for all eternity, as the nun would have no assets that could be pursued or attached.

I’m guessing that they do this only to avoid the bad PR associated with it showing up in the press, that some of God’s servants are debt-scofflaws.

 
 
 
Comment by ahansen
2012-05-07 17:41:49

Fun find, WT. Shows us where the morality of the Catholic Church really lies, don’t it?

 
 
 
Comment by Neuromance
2012-05-07 08:50:59

The Euro is the Esperanto of currencies. A terribly flawed answer to a significant need.

Esperanto was to address the need for a common language. But English is the de facto lingua franca of the world. Like it or not. German and some Chinese dialects are rising and may eventually replace it.

The dollar or deutsche mark or the pound were the most stable and widely used currencies. They could have been adopted as the de facto common currency for Europe.

BUT - human pride prevents accepting the best answer and a pride-neutral answer is attempted. But sometimes, one has to simply accept that the “stupid Flanders” neighbor is doing it better, and in order to improve the situation, it’s just best to emulate him. Instead of trying to develop an Esperanto or a Euro.

Comment by turkey lurkey
2012-05-07 10:47:55

I love these short sellers Forex traders wet dream fantasy articles, because the world’s largest market is not going away anytime soon.

 
 
Comment by Neuromance
2012-05-07 09:02:56

It’s good to look at foreign news sources. I was watching something on public access CCTV, where a Chinese broadcaster was interviewing a Frenchman on the current election results. One thing he touched on was the problem Brazil is having with “monetary flooding” of dollars.

I don’t know how accurate the assertions are, but clearly the Chinese and the Brazilians are quite concerned with it.

“President Dilma Rousseff’s administration yesterday also imposed a 6 percent IOF tax on foreign loans and bonds with a duration of less than three years. Rousseff said Brazil had to create tools to fight a flood of dollars that were stemming from “perverse” monetary policies implemented by developed economies, such as the European Union.”

http://www.businessweek.com/news/2012-03-01/brazil-taxes-loans-to-exporters-in-effort-to-stem-rally-amid-currency-war

==========================

“Rousseff said Latin American and other emerging economies were within their rights to defend themselves against “monetary flooding” from rich countries and pointed to “defensive” measures that should not be taken as “protectionist” measures.

Brazil in the past has criticized China for flooding the Brazil market with cheap goods but Rousseff’s present ire is most directed at Western nations she says is behind “monetary flooding.”

Rousseff pointedly attacked European monetary policies which, she said, were damaging emergent markets.”

http://www.upi.com/Business_News/Energy-Resources/2012/04/17/Brazil-attacks-rich-nations-as-predatory/UPI-15121334657962/

Comment by measton
2012-05-07 11:06:35

Of course they are concerned, they’d like to keep exporting to us but if we keep printing dollars that get’s harder and harder for them to do as their populations will feel the bite of inflation long before ours.

 
Comment by Anonymous Coward
2012-05-07 18:16:31

It’s no different from all the hedge funds doing the yen carry trade as a cheap source of financing in the early 2000s. We had to deal with the effect on our asset prices. Now it’s the euro carry trade and (for the brave or just plain stupid) the dollar carry trade. Globalization is fun. And unavoidable. Of course certain people in Latin America were able to get cheap financing and how to take advantage. What academic economists will try to teach you about currency appreciation/depreciation counteracting any difference in prevailing interest rates amongst currencies rarely holds true.

Comment by Anonymous Coward
2012-05-07 18:20:12

Sorry, that sould have said, “Of course certain people in Latin America were able to figure out how to get cheap financing…” Apple’s autocorrect is great, but i still much prefer blackberry typing to ios. Takes forever.

 
 
 
Comment by Patrick
2012-05-07 09:28:06

RAL i think is right, prices are decent right now because it’s the spring sales period up to June 30th.

Until the shadow inventory is dealt with and real growth begins everything is iffy. To be able to handle both we need stronger government decisions.

Shadow inventory is mostly insured by F&F. The banks should be told that if they do not realize on their insurance by Dec 31, 2012 then they are no longer insured. Wonder what that would do to this glut.

Instead of feeding the banks and WS the govt should just order a 25% pay reduction to all of it’s staff and freeze pays for three years. No layoffs, no QE3, no stimulus. Just get their house in order.

Small corporate profits are disappearing and that is extremely worrisome because they are the real economic drivers within contintental America. Large companies drive the world, small employ American personnel.

I hope that no one believes a growth of 1.5% is even close to adequate as it does not allow even for capital repayments. Where is the growth money.

Capacity utilization rates are a little stronger so employee hiring can start at one point - but not for at least another year.

Taxing the rich should not be a problem. As an accountant I can tell you they do not personally create employment - their companies do. They never like putting their money back into their companies as a shareholder loan unless they are forced to.

With as much as three trillion dollars now in overseas profits owned by multinationals it is almost sinful that they are insisting that they be allowed an almost tax haven (5%) before repatriation. They should enjoy full taxation of active and passive profits on their world wide incomes. Why is that so hard to see?

Can you believe Europe tried QE with only 1.2 T usf ? They should have plunked down at least 4 - or sorry, math impossibility. But would it have worked anyway - doubtful.

And how about WS? Half the volume and prices are bloated?

Until President O’Bama and PM Harper start making the tough decisions, mostly in housing and an overpaid civil service, then we will enjoy sailing on a boat without a rudder.

This nightmare is getting worse, not better.

Comment by turkey lurkey
2012-05-07 10:49:44
Comment by Rental Watch
2012-05-07 17:09:58

I wonder what deductions companies take? Expensing the capital goods that they are no longer utilizing for their business in the US? Does anyone have clarity on this?

I’m always curious as to what politicians call a “tax break”. Often times, people in business call them “expenses”.

I’m further concerned with unintended consequences on monkeying with the economics of exiting a particular market…Spain has very pro-employee laws relating to mandated severance at firing…as such, no one hires new workers…poof, massive unemployment is partially a result of a very pro-employee set of laws.

If you make it more expensive to shutter a US plant (fire worker equivalent), we may find businesses less likely to build a US plant in the first place (hire worker equivalent).

 
 
Comment by Realtors Are Liars®
2012-05-07 12:08:36

RAL i think is right

And sadly, the truth is that if housing prices traded at dramatically more affordable and realistic levels(50% under current levels), there would be rapid economic activity and recovery.

Comment by Patrick
2012-05-07 14:40:31

Turkey - Thank you for the article. Walmart 1990 90% domestic, 2000 20% , 2012 2%. Atypical of Costco, etc. An American chair made in 1990 is still in use today. A chair made in China today will be broken in two years (but I only paid 50% of the American built chair !). We have to get those profits back to stop them from being used against us; and to give us real value for our purchases.

RAL - couldn’t agree with you more. Up to 30% of the economy is shut in because of this housing mess. When is a major politico going to have the guts to face up to reality?

I don’t like realtors blowing smoke up my kilt either. But if I catch them there I’ll - -

 
 
 
Comment by measton
2012-05-07 09:37:15

For Griz From VAT tax discussion yesterday

Workers will be compensated in two ways.

1. Less will be taken out of their paycheck each month for payroll taxes.
2. There will be more jobs because
a. People will pay to fix things rather than buy new stuff

b. Manufacturing in the US will be more cost competitive.

/simply-american.net/2011/11/30/comparing-apples-to-apples/

Using the correct labor costs of assembling an iPad 2 in the U.S., an iPad 2 made in the U.S would cost $445 ($325 for parts + $120 for labor), as opposed to a Chinese iPad’s cost of $335 ($325 for parts + $10 for labor). Assembling the iPad 2 in the U.S. and selling it for $729 would bring Apple’s gross margin down to 39%, not the 15.25% cited to by Mr. Thompson.

OK so cost of US produced Ipad2 = 445 vs chinese 335
Now add in a 20% VAT tax. ON US produced product
US IPAD VAT tax is 0.2 x(729 minus 445) = 56.8
China IPAD VAT tax is 0.2x(729 minus 335) = 78.8

Apples profit with a 20% VAT tax is still higher with the made in China product but the difference is less,

Without VAT - 445-335 = 110
With VAT - (445 +56.8) minus (335+78) = 90

Now I’ve also neglected that the company will save even more as the revenue from the VAT tax will be used to reduce payroll taxes on it’s US employees, that the company and the worker currently pay.

Also, there are other advantages to manufacturing in the US like controlling your supply chain and preventing IP theft. For products that have a lower percentage of their total cost being labor the benefit would be even more.

Now remember the worker will have more money in his pocket as less was taken out of his paycheck (ie VAT tax revenue used to reduce payroll taxes), they will look at the cost of replacing their car (large% foreign labor) and may instead hire someone to fix it instead. The local garage can charge lower rates because it doesn’t have to pay as much in payroll taxes

Obviously other changes to the tax code could be made to help those at the bottom more. ie no income tax on first 30k etc.

Note the VAT would not be applied to food.

Comment by WT Economist
2012-05-07 10:50:47

Apply it to food too, but don’t replace the income tax. Replace the payroll tax instead. Both the payroll tax and a VAT fall more heavily on the less well off. Replacing the income tax would make the tax code favor the rich even more.

The value of food stamps and Social Security could go up to offset the food and overall inflation for the less well off and low and moderate income seniors. But those seniors who are far better off than they will leave those coming after would start paying taxes gain.

Comment by measton
2012-05-07 11:08:09

This is exactly what I suggested yesterday. That the revenue from the VAT could be used to reduce or eliminate payroll taxes.

Comment by WT Economist
2012-05-07 12:47:22

That doesn’t make the tax code even better for the rich, so no one brings it up.

If taxes discourage things, what has been most discouraged? Investments by rich Americans (with stocks and bonds at bubble levels)? Spending by Americans who can’t afford it? Or jobs for Americans?

So why do we tax jobs the most?

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Comment by turkey lurkey
2012-05-07 10:51:09

VAT, like the flat tax, is a wash for those with good jobs and a severe penalty for those with marginal jobs… which is about half the workforce population.

Comment by measton
2012-05-07 11:13:40

These people might be the primary beneficiary. VAT shifts the balance from say buying a lawn mower to paying someone with a lawn mower to mow your lawn. It shifts the balance from buying a new lawn mower to repairing the one you have. Both of these would create jobs for people at the margin.

Again they would also have large paychecks due to the reduction or elimination of the payroll tax and the influx of jobs but if that wasn’t enough you could cut income taxes on teh first 30k.

 
 
 
Comment by Prime_Is_Contained
2012-05-07 10:12:43

So, PB: if you prefer our current tax structure over a VAT, then presumably you have something against income and sales?

Remember, whatever gets taxed on the margin tends to decline…

So by transitioning to a VAT, we would presumably boost both income and sales, as we would no longer be taxing them.


Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-06 09:55:12

Why do you always advocate taxing value? Don’t you realize that whatever gets taxed on the margin tends to decline? Do you have something against value?

Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 11:28:44

I didn’t advocate for our current tax system. I questioned whether taxing value might not decrease it.

If you think value is something to be avoided, then VAT is apparently the ticket for you.

Comment by Prime_Is_Contained
2012-05-07 13:18:31

I guess the underlying question in my post was this: of all of the things that we might tax, and thus might decrease, which one(s) should we choose?

Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 13:38:47

Charge each household a lump sum tax bill based on their accumulated wealth.

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Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 11:30:36

The pain in Spain
Is real estate — ’tis plain!

Bank Chief Steps Down as Spain Considers Rescue
By RAPHAEL MINDER
Published: May 7, 2012

MADRID — Rodrigo Rato, the executive chairman of Bankia, resigned Monday before an anticipated government recapitalization of the company, Spain’s largest real estate lender, which is sitting on €32 billion of troubled assets.

Mr. Rato, a former finance minister and past managing director of the International Monetary Fund, is the most prominent Spanish banker to quit since the start of the euro zone’s sovereign debt crisis, which has raised concerns not only about the solvency of Spain’s banks but of its economy as a whole.

While the government and the central bank have been debating in recent days how to clean up the balance sheets of the most troubled banks, Prime Minister Mariano Rajoy confirmed for the first time Monday that such a rescue plan could involve public money. Earlier, he had pledged not to make taxpayers bear the cost of saving the banks.

Bankia is now expected to receive €7 billion to €10 billion, or $9.1 billion to $13 billion, of additional state funding, in the form of convertible bonds, according to reports Monday in the Spanish media.

“Something urgently had to be done about Bankia because the size of its problematic assets made it the most delicate and dangerous part of the whole financial sector,” said Jordi Fabregat, a finance professor at the Esade business school in Barcelona. “What’s unclear is whether this will be enough to restore confidence among investors, or whether in fact €10 billion will end up being a drop in the ocean should all the problematic assets turn out to be worth zero.”

Comment by Rental Watch
2012-05-07 17:12:27

Spain is ~20% larger than CA in terms of population…at the peak, they were building something like 760k homes per year (2006 number)…California at peak was building 200-250k…whoa.

 
 
Comment by michael
2012-05-07 13:10:29

some mortgage bond pioneer douche says housing has reached a bottom.

in other news…my barber says i need a haircut.

Comment by Realtors Are Liars®
2012-05-07 14:18:08

Meanwhile down on Main Street, housing prices continue to crater.

 
Comment by turkey lurkey
2012-05-07 14:20:55

You also NEED a new car!

 
 
Comment by WT Economist
2012-05-07 16:01:53

Break out the champaign?

http://www.bloomberg.com/news/2012-05-07/consumer-credit-in-u-s-rose-in-march-by-most-in-over-10-years.html

“Consumer borrowing in the U.S. surged in March by the most in more than a decade on growing demand for educational financing and autos. Credit rose by $21.4 billion, the biggest gain since November 2001, to $2.54 trillion, Federal Reserve figures showed today in Washington. The advance was paced by a $16.2 billion jump in non-revolving debt, including student and car loans.”

 
Comment by Muggy
2012-05-07 16:44:45

We sometimes talk about diet and cooking on this blog, so I would like to share this again with anyone who considers their health when eating. This book is positioned for patients with serious heart conditions, but it’s for anybody.

We’re investigative, skeptical types, so I encourage you to dislike this as much as you want, but the evidence is all right there (think housing only goes up, you’re throwing away money on rent and so on). It’s quite an awakening read. Here’s the book:

http://www.heartattackproof.com/

Here’s the short:
- Vegan (no meat, no cheese)
- No oil (damages endothelial lining)
- Whole grains only, in moderation (like ezekiel sprouted grain bread)
- Nothing over 2.5g fat / 100 calories

I am 99% compliant with this, and I feel great. (However, I am wayyy over the recommended alcohol/coffee guidelines).

Comment by Muggy
2012-05-07 17:02:47

“- Nothing over 2.5g fat / 100 calories ”

Sorry, that’s a ratio to follow, not a limit…

 
Comment by RioAmericanInBrasil
2012-05-07 17:07:10

- Vegan (no meat, no cheese)
- No oil (damages endothelial lining)
- Whole grains only, in moderation (like ezekiel sprouted grain bread)
- Nothing over 2.5g fat / 100 calories

“My doctor said I was doing “fairly well” for my age.”

A little concerned about that comment, I couldn’t resist asking him, “Do you think I will live to be 80?”

He asked: Do you smoke tobacco or drink alcoholic beverages?”

“Oh no,” I replied. “I don’t do drugs, either.”

“Do you have many friends and entertain frequently?”

“I said, “No, I usually stay home and keep to myself”.

“Do you eat rib-eye steaks and barbecued ribs?”

I said, “No, my other doctor said that all red meat is unhealthy!”

“Do you spend a lot of time in the sun, like playing golf, sailing, hiking, or bicycling?”

“No, I don’t,” I said.

“Do you gamble, drive fast cars, or have a lot of sex?”

“No,” I said. “I don’t do any of those things.”

He looked at me and said, “Then why do you give a sh!^??

Comment by Muggy
2012-05-07 17:51:49

I did plenty of living for myself in my 20’s in NYC. I owe it to my kids to be around.

 
Comment by CarrieAnn
2012-05-07 20:50:24

I loosely follow the mypyramid.gov recommendations and run 40 miles a week.

On a long run or major race day I burn 1200- 1400 calories in about 2 hours. (10-15 miles)

I feel great and have a lot of opportunities to cheat like after my races when I need to replenish fat, salt, liquids. Your body also burns at a higher metabolic rate immediately after exercise. (about 20 min)

I have an extremely healthy cardiovascular system. When they prepped me for surgery a few years back, the medic knew I was an athlete just by my readings. He said they were about 30% better than the avg person he sees.

It’s great to eat right but you really do need some sort of exercise to really feel your best.

Comment by Bill in Los Angeles
2012-05-07 21:11:58

For me it ends up with swimming. Running is too hard on my skinny legs. But I am proud to have low body fat.

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Comment by CarrieAnn
2012-05-08 03:51:21

Running is too hard on my skinny legs.

It’s not a hard and fast rule but most of the best runners are skinny. You’ve got to build slow to get past the injury stage of the beginner, only adding 15 min of running at a time after a few weeks of getting the body used to the added stress. I had crappy knees growing up but they’re actually getting stronger as I run.

As you well know, swimming is a high calorie burner too. Yours is primarily an upper body work out (so I’m imagining you have nice shoulders) while a runner’s is primarily a lower body workout.

Another added benefit of swimming over running is you don’t endure your doctor waving a finger in your face that you’re ruining your joints (even though she runs too).

 
Comment by Bill in Los Angeles
2012-05-08 06:55:59

Yes My shoulders look like steel cords, very ripped. But in weightlifting shoulder presses are my weakest. I focus on wide grip chins for the lats to compensate and rely on my swimming to work the shoulders.

 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 17:40:39

“…I feel great… However, I am wayyy over the recommended alcohol/coffee guidelines…”

Doubtless this is due to a confounding effect.

 
 
Comment by Bill in Carolina
2012-05-07 17:03:29

Now we know why none of the big boys in FIRE, including Jon Corzine, are worried about the possibility of government prosecution.

http://www.thedailybeast.com/newsweek/2012/05/06/why-can-t-obama-bring-wall-street-to-justice.html

“As it turned out, Obama apparently actually meant what he said at that White House meeting–his administration effectively would stand between Big Finance and anything like a severe accounting. To the dismay of many of Obama’s supporters, nearly four years after the disaster, there has not been a single criminal charge filed by the federal government against any top executive of the elite financial institutions.”

Comment by Neuromance
2012-05-07 19:27:55

The two parties are two heads of the same hydra.

 
 
Comment by Muggy
2012-05-07 19:15:26

Hmmm, this is interesting:

Largest International Money Laundering Network in History Formed During Obama Administration; U.S. Banks’ Theft of Home Owners’ Money Laundered Through Cayman Islands, Isle of Man and Numerous Offshore-Based Affiliates

http://finance.yahoo.com/news/home-owners-across-nation-sue-040100659.html

Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 21:28:11

Sounds vaguely reminiscent of Enron, no?

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-05-07 23:47:32

Fannie, Freddie are set to reduce mortgage balances in California

The mortgage giants sign on to Keep Your Home California, a $2-billion foreclosure prevention program, after state drops a requirement that lenders match taxpayer funds used for principal reductions.

Keep Your Home California

The participation of Fannie Mae and Freddie Mac could provide a major boost to Keep Your Home California because they own about 62% of outstanding mortgages in the Golden State. Above, Fannie Mae’s headquarters in Washington. (Manuel Balce Ceneta, Associated Press / August 8, 2011)

BofA provides example of mortgage-modification foot-dragging BofA provides example of mortgage-modification foot-dragging

By Alejandro Lazo, Los Angeles Times

May 8, 2012

As California pushes to get more homeowners into a $2-billion foreclosure prevention program, some Fannie Mae and Freddie Mac borrowers may see their mortgages shrunk through principal reduction.

State officials are making a significant change to the Keep Your Home California program. They are dropping a requirement that banks match taxpayers funds when homeowners receive mortgage reductions through the program.

The initiative, which uses federal funds from the 2008 Wall Street bailout to help borrowers at risk of foreclosure, has faced lackluster participation and lender resistance since it was rolled out last year. By eliminating the requirement that banks provide matching funds, state officials hope to make it easier for homeowners to get principal reductions.

The participation by Fannie Mae and Freddie Mac, confirmed Monday, could provide a major boost to Keep Your Home California.

Fannie Mae and Freddie Mac own about 62% of outstanding mortgages in the Golden State, according to the state attorney general’s office. But since the program was unveiled last year, neither has elected to participate in principal reduction because of concerns about additional costs to taxpayers.

Only a small number of California homeowners — 8,500 to 9,000 — would be able to get mortgage write-downs with the current level of funds available. But given the previous opposition to these types of modifications by the two mortgage giants, housing advocates who want to make principal reduction more widespread hailed their involvement.

“Having Fannie and Freddie participate in the state Keep Your Home principal reduction program would be a really important step forward,” said Paul Leonard, California director of the Center for Responsible Lending. “Fannie and Freddie are at some level the market leaders; they represent a large share of all existing mortgages.”

The two mortgage giants were seized by the federal government in 2008 as they bordered on bankruptcy, and taxpayers have provided $188 billion to keep them afloat.

Edward J. DeMarco, head of the federal agency that oversees Fannie and Freddie, has argued that principal reduction would not be in the best interest of taxpayers and that other types of loan modifications are more effective.

But pressure has mounted on DeMarco to alter his position. In a recent letter to DeMarco, congressional Democrats cited Fannie Mae documents that they say showed a 2009 pilot program by Fannie would have cost only $1.7 million to implement but could have provided more than $410 million worth of benefits. They decried the scuttling of that program as ideological in nature.

Fannie and Freddie last year made it their policy to participate in state-run principal reduction programs such as Keep Your Home California as long as they or the mortgage companies that work for them don’t have to contribute funds.

Banks and other financial institutions have been reluctant to participate in widespread principal reductions. Lenders argue that such reductions aren’t worth the cost and would create a “moral hazard” by rewarding delinquent borrowers.

 
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