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Friday, September 09, 2011
Political Issues As Related to Environmental Limitations
The issue of climate change may loom large to the nations of the world as sea levels slowly rise. The outcome of receding floods may be that the prior coastline is obliterated in low lying areas as sea levels have risen from the icemelt in the north and south lands. We're not inundated but the sea level rise continues. Study of the fossil record informs that lands now one way were not always that way. Like fossil seashells in the mountains of New Mexico. Dinosaur bones near Showlow among the pines. We are in a sea of change all the time and are just now beginning to understand the enormity of history and how limited our view has been.
Hurricanes might begin forming where the cold arctic water hits the warm equatorial waters flowing off Africa and now with more melt the water is flowing faster and makes a more energy filled turn when it hits the mass of warm water off North Africa. The wide whirlpool where one meets the other extends to the atmosphere. I wonder what the stats might say about the connection between more and warmer arctic water pouring south. Where is the Antarctic melt going? Does the melt travel towards the equator? The melt occurs in one place where sea levels rise, slowly pushing the excess to an average very gradually. Incremental melting. Storms redistribute the melt. New Orleans would be a good place to look for evidence of sea level rise that is obvious at the poles. Or Bangladesh.
The implication of this for public policy is enormous. Politicians must be willing to address actual problems without worrying about donations to themselves. These problems are too important to allow them to be solved as a secondary issue to any other concern. Arguing about who or what causes warming trends is not my purpose here.
The predicted sea level rise and the predicted increase in precipitation in northeastern North America has so far proven true. What does this have to do with public policy? Here are a few public policy issues and ideas for long term planning concerning climate change.
• Evaluate floodplain data and possibly expand the floodplain designation in low lying areas along coasts and rivers.
• Deny Federal insurance to every property in these low lying areas and provide a relocation fund for needy families. Use cut rate excess housing for these people. If somebody wants to stay in the zone, private property rules but no federal insurance will be held on the property. Voluntary sale of properties in the zones would be the rule, not imminent domain but no federal insurance. Local governments should be held legally responsible if they issue occupational zoning for these flood zones.
• Sell or lease floodzones on the open market for use as pasture, farming and recreation. If local governments retain the land, private contractors could be hired to convert flood prone areas into parks, ball fields and green zones. This action could create jobs in the affected areas, create more recreational areas and enhance tourism. Perhaps some of the floodlands could be leased for temporary concessionaires, like taco and hotdog stands.
These solutions to problems created by sea level rise would take years to implement, which is a long term solution for a long term problem. It would also create jobs immediately and circulate money through the economy. The issue is where is the money for such projects without borrowing? Possibly some of the 'transportation' money could be funneled into reclamation of these lowland recreational areas. Since the infrastructure is in disrepair, attention should be paid to maintenance, rather than creating new roads. We need to utilize existing rather than spending money on new ones that give limited economic benefit to only a few. We need something new, but it isn't new roads. We need roads in excellent repair and that is where those jobs are.
I have drifted to the topic of the repercussions of these actions. Political opposition to rezoning/expanding floodzones due to the loss of value of the land to their constituents will occur but the economic advantages of such recreational areas over time and the savings from national flood insurance as these at risk properties could be partly remitted to the states for a more cooperative attitude. Since the national flood insurance program is billions in deficit, some action must be taken to discourage continued occupation of flood zones and the foolhardy insuring of structures in floodzones.
I do have a few observations about the stimulus. In Tucson, the TIGER Grant from the Feds caused more borrowing and commitment to a streetcar project that will leave the city with a $6 million a year maintenance cost, while the local bus system is already subsidized by $40 million. For the past two years the city has borrowed to pay costs, now has a debt of $1.2 billion, has cut police and fire and services to citizens, ad nauseum. So the TIGER grant put the city in more debt and added $6 million a year to the millions in deficit. Some stimulus.
Apparently, stimulus money was used by the ATF to fund 'Fast and Furious', the gunrunning scandal that is now reaching to the white house. All these people have been transferred, hopefully in a holding tank for interrogation. Do we really need to help depose the legitimate government of Mexico by providing firearms to what look to be revolutionaries funded by drug money? What were they thinking? Were local law enforcement like county sheriffs informed of this scheme? Were the city police chiefs told about this 'Fast and Furious'? This stupid scheme endangered every law enforcement officer in Arizona and they reportedly spent stimulus funds on this horseshit. Were the Border Patrol people informed???
Now the Democrats are screaming about a GOP gun raffle, while they remain conspicuously silent on the issue of the ATF scandal, no doubt because it was the brainchild of the Democratic administration, who apparently has a cavalier attitude about Arizona law enforcement . Those guns surfaced in 23 crime scenes in Phoenix, at the Agent Terry killing, and all over Mexico, including where two of our agents died on a mission close to Tampico. And this is economic help? More jobs for the undertakers and medics?
Tax code revision is coming. I hope they start from scratch, simplify the code and give a calculated group of tax breaks for businesses that locate in the United States and make physical objects to replace imports.
A rationale for this tax break: Fuel costs will increase, which will increase the cost of the overseas objects, particularly the heavy items. As an example, glass making used to be a huge industry but has now been hurt by cheap imports. A tariff on heavy items seems reasonable, as fuel becomes more scarce. Exporting our raw materials seems foolish with unemployment as high as it is here. Let's use the raw materials to create jobs here. We need to keep our precious metals, copper, wood, uranium and anything else of use. Don't export scrap metal, use it to make jobs here at smelters, steel plants and all the things that go into the industry. Think long term goals and jobs as a result of tax breaks, not largesse for political contributors. We really need to help the country.
No tax breaks for non productive investments like derivatives and mortgage securities and equities. If the scheme 'investment' does not create jobs then tax it at a higher rate to discourage the practice. Possibly this kind of 'insurance' should not be tax deductable. These 'derivatives' the originators were so smug about creating something that the peons could not understand just give me your money and I will take care of it for us. It was just another scam. Mr. Bernanke tell me it isn't true that QE2 went to purchase securities in an effort to keep the scheme going? The originator of the loan should be responsible for servicing it and if it goes belly up must pay whomever they sold it to for the full cost. Something has to stop the schemers and charlatans from running this country. Tax heavily those who make a living soliciting and setting up debt.
On from the tax ideas, another problem is the increasing cost and scarcity of fuel. On a positive note, the current administration has taken steps to raise mileage requirements and the carmakers have returned to solvency with new fuel efficient models. Natural gas data needs to be examined. We need a variety of fuel sources. The ethanol industry has begun and should be maintained, for the possible need of it. Federal funding of Research and Development brought us computer technology and there is more creativity where that came from. Fund universities and create student jobs in R&D, not more administration. The ideas are endless and the solutions to national problems are endless but we need to act before the situation reaches crisis stage.
Another problem is population growth. In these times, increasing population will increase joblessness because there are not enough jobs. Each cadre of workers now averages about 9% unemployment and job creation has just about kept pace with population growth. In revising the tax code, perhaps slowing population growth might be accomplished by allowing only one child deduction per person, with higher taxes to be paid for each additional child, in order to pay for the expensive accommodation of more population when unemployment is high. We cannot afford to increase the population at the expense of the rest of the population, who is supporting the surplus with unemployment benefits and welfare. We are no longer expanding into 'empty' territory: we cannot continue to increase in numbers since we are living in a finite space with finite resources. You cannot infinitely expand in a finite territory. One person has one child tax deduction and must pay higher taxes for more children. The encouragement of childbearing through the tax code should be discontinued as an anachronism. The welfare system also must address this problem, the sooner the better. A school tax for more than one child needs to be implemented, in order for the actual parents to contribute towards the education of more than one child. Who else should pay for it?
I don't like the idea of a flat tax. Taxes should be aimed at the phenomena that actually costs the system as solvency has become a problem. Tort reform comes to mind as well as the tax setup on repossessed properties. I heard that lienholders were not paying property taxes on the foreclosed properties and that the local governments need the cash. How about a huge penalty for these lienholders not paying local taxes? If they hold over a certain number of foreclosed properties, they must pay a tax for the police and fire protection fund? To discourage foreclosure, taxes on foreclosed properties must be paid before delinquency. Taxes can be used to form public policy as well as a source of revenue.
Taxes discourage business creation but the number of other ways to discourage business that exist in our society today are legion and the total adds up to stagnation. The price war conducted by foreign nations has replaced too many jobs and now the stuff they sell is rising in price and quality while our workers sit idle. I read of an instance up in the NE part of the country where an object was manufactured welcomed a foreign observer with samples and was later driven out of business by cheap foreign copies. They have tariffs on our goods but we have no tariffs. I know our consumer has enjoyed the low prices but now the unemployment is causing social unrest and welfare costs. We cannot afford to buy so much overseas and pay benefits and welfare to the unemployed. We need a tax on goods we can make ourselves coming into this country. Tax imports and investors will see an opportunity to create jobs here making something: Cotton/cloth/clothes/linens/canvas......See the job possibilities if the unions can restrain their wage demands. I am for open shop because I always disliked paying into a union that did not represent my political beliefs. It was a violation of my civil rights.
Taxing is a valuable tool if the ones wielding the tool are doing it for the public good and not as a personal favor to their contributors, who may or may not be contributing to the public good, but rather feeding from the tax trough. Maybe I'm talking about corruption here. Like you don't give tax breaks to your friends and lay tax on their enemies. We're not on the playground here. We are attempting to plan for the future and petty reasoning should not be heeded.
So back to doing business in my community, which is hampered by licensing, inspections, rejections, favoritism, zoning, neighborhood associations, cronyism and corruption. The desire of the populace to obey the laws allows the bureaucrats who work for the taxpayers to slow things down. The bigger the bribe the faster the service to allow for business activity? Do you realize what I just wrote? Should all these laws, licenses, inspections etc even exist? These laws must be simplified, because communities need some laws like public health laws but they don't need the level of control that is being exerted in an effort to extract money from businesspeople. First we need enabling legislation to Rezone, then throw out all existing zoning and begin again.
Since the local governments have increased spending by borrowing, which is a deep hole, this mania for getting money from people starting a business has catered to the wealthy chains who can afford all the fees and hoopla. During recessionary times, perhaps a different approach could be tried. The 'upscale' chains are going broke and scaling back because the high unemployment rate has less ready cash in the local system. Less cash out of a job doesn't go even midscale, gravitating toward discount and cheap fast food. Less spending means less tax collected by the city, who prefers raising taxes instead of laying off people, useful or not. Raising taxes means less money in the system because people have to now pay more tax instead of consumer spending generating more sales tax. Sometime, governments are going to have to cut spending. Is it beginning now? Devaluation would make each dollar buy more but there would be fewer dollars. Cash is king again and let the pawnbrokers rule. Americans have accumulated material possessions and perhaps can weather a devaluation and possible shortages of material goods and continued high unemployment.
This Rezoning idea of just starting over and changing all the zoning designations would allow for a fresh approach to economic problems. We need to help set up a way for people to actually open their own tiny businesses in their homes, as a mode of survival if nothing else. Idle hands are the devil's workshop. Forcing people to drive long distances to get groceries is going to be counterproductive as fuel supplies dwindle. If our neighborhoods are already set up with a secondary distribution system in the form of farmers' markets and local Abarrotes, it would be easier to cope with a fuel shortage. Trucking or railing in food is cheaper than every family driving in a car to a grocery store. We need more distribution centers in the neighborhoods. The zoning laws are preventing this survival mechanism and also the development of neighborhood small businesses. Zoning as we know it today should be revised
EL TIRADITO
Tuesday, September 06, 2011
Hate Speech and Death Threats in Tucson
Hate Speech or Freedom of Speech?
I am writing this to protest an editorial in the Arizona Daily Star that incites violence by name calling and making insinuations against a specific group. I think this comes under hate speech.
An inflammatory unsigned editorial veted by the Arizona Daily Star viciously connects two unrelated circumstances and then proceeds to flay the Pima County Republican Party for it. Such specious logic would be laughable if such journalistic bias had not resulted in a death threat against Republican candidates and members.
The Star used the following descriptors against the entire Republican Party of Pima County:
"Crass, insensitive, vulgar, displaying a lack of empathy or compassion, dumb-founding, offensive, callous, boorish, thoughtless-all words that would fit." or how about "But Shaw proves again that the county party isn't concerned with the people who lived through the Jan. 8 rampage, the families and friends of those who were killed or the community that has been dealing with the loss and grief."
I think that is an unfounded attack on all Republicans in Pima County and I think this fallacious connecting of our local Republican Party to the Loughner shootings is inciting violence, as evidenced by the recent death threat generated by all the publicity around this vicious linking to the Republican Party. The first paragraph of the editorial mentioned the GOP raffle and the next brought up the Loughner shootings, as if the two were related.
Civility? These individuals are using a tragedy perpetuated by a madman for their own political ends as a smokescreen to cover up all the criminal investigations concerning Rio Nuevo and the city. Whipping up raw emotion and using it to strip the skin from somebody who had nothing to do with it is contemptible. And, according to the Arizona Daily Star, we must have 'done' all this before because 'again' indicates a prior occurrence. I feel they are inciting violence against a particular group.
Such outrage over Glocks: The NRA raffled off Glocks right here in Tucson just last month, Police carry Glocks, Glocks are used in shooting competitions and Gabrielle Giffords owned a Glock. I wonder why the Democrats and the Star didn't take on the NRA about the Glock raffles right here in Tucson a few weeks ago? Was the Pima GOP a better target?
Jeff Rogers, head of Pima Democrats, has been hate mongering and he must think this latest emotional blast over the shootings during elections will get more votes for Democrats. At what cost? Will someone else be shot due to all this hate mongering and insinuations and death threats against Republican members and candidates? I think that Jeff Rogers and the Arizona Daily Star are indulging in hate politics and that the community is being hurt as a result.
It is probably too much to expect an apology or even a cease and desist order, so I find it necessary to call this situation to the attention of law enforcement, due to the death threats against Republicans and their candidates.
Tucson AZ September 6, 2011
I am writing this to protest an editorial in the Arizona Daily Star that incites violence by name calling and making insinuations against a specific group. I think this comes under hate speech.
An inflammatory unsigned editorial veted by the Arizona Daily Star viciously connects two unrelated circumstances and then proceeds to flay the Pima County Republican Party for it. Such specious logic would be laughable if such journalistic bias had not resulted in a death threat against Republican candidates and members.
The Star used the following descriptors against the entire Republican Party of Pima County:
"Crass, insensitive, vulgar, displaying a lack of empathy or compassion, dumb-founding, offensive, callous, boorish, thoughtless-all words that would fit." or how about "But Shaw proves again that the county party isn't concerned with the people who lived through the Jan. 8 rampage, the families and friends of those who were killed or the community that has been dealing with the loss and grief."
I think that is an unfounded attack on all Republicans in Pima County and I think this fallacious connecting of our local Republican Party to the Loughner shootings is inciting violence, as evidenced by the recent death threat generated by all the publicity around this vicious linking to the Republican Party. The first paragraph of the editorial mentioned the GOP raffle and the next brought up the Loughner shootings, as if the two were related.
Civility? These individuals are using a tragedy perpetuated by a madman for their own political ends as a smokescreen to cover up all the criminal investigations concerning Rio Nuevo and the city. Whipping up raw emotion and using it to strip the skin from somebody who had nothing to do with it is contemptible. And, according to the Arizona Daily Star, we must have 'done' all this before because 'again' indicates a prior occurrence. I feel they are inciting violence against a particular group.
Such outrage over Glocks: The NRA raffled off Glocks right here in Tucson just last month, Police carry Glocks, Glocks are used in shooting competitions and Gabrielle Giffords owned a Glock. I wonder why the Democrats and the Star didn't take on the NRA about the Glock raffles right here in Tucson a few weeks ago? Was the Pima GOP a better target?
Jeff Rogers, head of Pima Democrats, has been hate mongering and he must think this latest emotional blast over the shootings during elections will get more votes for Democrats. At what cost? Will someone else be shot due to all this hate mongering and insinuations and death threats against Republican members and candidates? I think that Jeff Rogers and the Arizona Daily Star are indulging in hate politics and that the community is being hurt as a result.
It is probably too much to expect an apology or even a cease and desist order, so I find it necessary to call this situation to the attention of law enforcement, due to the death threats against Republicans and their candidates.
Tucson AZ September 6, 2011
Saturday, August 06, 2011
USA DOWNGRADED
Solving problems through use of modern technology
The people need more input into the government, which would be available through the internet on a timely basis. The people could ask questions and vote on proposals via the internet, while their chosen representatives implement policy. This idea would take power from the representatives and senators and give it back to the people.
The current indebtedness is the result of short term thinking, rather than attention to long term planning. The eagerness of the moneylenders to finance our wars and bailouts makes me wonder about what is actually going on. I would not want our military to become mercenary under such conditions. They will not be used to protect foreign mining and commercial interests at taxpayer expense on borrowed money from the one being protected. If such be needed, then they provide it for themselves at their own expense. Long term planning indicates the need for a strong military, perhaps with the prospects of peaceful commerce established rather than active hostilities. The people need to vote on the possibilities for peace.
The idea of voting via the internet on important issues like the debt ceiling hike would allow the people to participate actively. Our elected representatives possibly are thinking of campaign donations rather than what is good for the majority of their constituents. Perhaps if their constituents participated in internet voting on specific issues, the politicians might pay attention to the details.
I wonder if they thought about the COLA on Social Security as a curb on excessive inflation as a tool to reduce debt while printing more money. If they remove that curb, the power of the Federal Reserve will be used to increase inflation. You still get the dime, but its only worth a nickel.
New news today states that Standard and Poore's downgraded the USA to AA+, a result of the continuing spiral into debt. Are these the same people who rated the subprime derivatives as excellent investments worthy of pension funds? Yet I assume that certain standards are to be met concerning these ratings, and assuming they are now actually checking for these standards, then the USA can be rated 'dispassionately'. This hassle occurred on Treasury Secretary Geithner's watch and calls for his resignation are surfacing like sharks.
The Tea Party is right about debt and I applaud those leaders who helped bring this problem to national attention. Maybe the downgrade would have alerted the common person but now continued downgrades in the headwind of slowing economic activity could occur. It is obvious that the continued low interest rate touted by the Federal Reserve is having a negative effect on the economy.
This trend of more and more debt will continue until national bankruptcy unless action is taken to prevent further debt. Term limits in the House and Senate are needed, so those elected will be home to face their neighbors instead of appearing as an icon in Washington for us to admire from afar. Elected members should not have the power to borrow without curbs or without a popular vote. They cannot handle the responsibility. We need to change the law in order to save the government.
Perhaps the 1878 mining law needs revision so that some control over our metals assets is retained for the good of the local economies, putting our metals resources out of reach of foreign interests. Metals are the new currency and the USA needs to conserve and control these resources. It is a matter of national security that we preserve our metals supply, because our civilization depends upon them.
My parting cannon shot is over the bow of the warship Derivatives. Tax reform is coming and these 'investments' that do not create jobs but yet reap huge rewards for the lucky gambler should be taxed at a higher rate like 'unearned income' taxed interest payments. Establish lower taxes for interest payments that come from job creating business paybacks. Higher taxes for the parasites gambling among themselves with the money they absorbed during those heady subprime days. Let's get rid of this corruption by voting those responsible for enabling these schemes out of office.
We need a balanced budget amendment that does not allow borrowed money to be counted as income to use to balance the budget. No accounting tricks, just true income and outgo, no more no less. No more Certificates of Participation to avoid bond elections and no more of selling public buildings for ready cash. The public needs to put some controls on these people. They are squandering our future for ephemeral goals.
If the size of government spending has doubled in the last decade, then it is obvious that this increase is not sustainable at this level. Call it the 'Government Bubble'. The last bubble was the 'Housing Bubble' and now government workers are going to be laid off because there isn't enough tax money to keep them all on the payroll. Adding workers and paying them with borrowed money is a bit risky in the real world.
Now is the time to open up private property for small business use. If government has less money to pay inspectors, perhaps restrictions on the use of private property should be lifted in order to assist people in the need to make a living using the property where they live. Current policy requires people to rent storefronts, provide parking and travel distances to work, so encouraging home based businesses and neighborhood walking paths would benefit the development of small business. If your house is along a walking and bicycle path, then you could sell cold drinks and snacks or you could have a snow cone sale or t shirts and hats or carnitas. I think that a license to have a business catering to foot traffic should be nominal. How about a tiny panaderia just down the street? How convenient is that?
Our society is changing and we need to cease the non adaptive behavior of forcing Tucson residents to drive to get food. Locating food sources near the people would cut down on fuel use and would also create a sense of neighborhood and employ people without having to move them across town. Maybe people would walk more.
Our society can change for the better and there is now an opportunity to make some changes using this debt reduction commission to be quickly formed even though they left town. I want to know who is on the commission and I want to know a date for the first meeting. Deadlines need to be met, the USA is now 'downgraded' and the debt continues to rule.
They need to get back to Washington and get back to work.
The people need more input into the government, which would be available through the internet on a timely basis. The people could ask questions and vote on proposals via the internet, while their chosen representatives implement policy. This idea would take power from the representatives and senators and give it back to the people.
The current indebtedness is the result of short term thinking, rather than attention to long term planning. The eagerness of the moneylenders to finance our wars and bailouts makes me wonder about what is actually going on. I would not want our military to become mercenary under such conditions. They will not be used to protect foreign mining and commercial interests at taxpayer expense on borrowed money from the one being protected. If such be needed, then they provide it for themselves at their own expense. Long term planning indicates the need for a strong military, perhaps with the prospects of peaceful commerce established rather than active hostilities. The people need to vote on the possibilities for peace.
The idea of voting via the internet on important issues like the debt ceiling hike would allow the people to participate actively. Our elected representatives possibly are thinking of campaign donations rather than what is good for the majority of their constituents. Perhaps if their constituents participated in internet voting on specific issues, the politicians might pay attention to the details.
I wonder if they thought about the COLA on Social Security as a curb on excessive inflation as a tool to reduce debt while printing more money. If they remove that curb, the power of the Federal Reserve will be used to increase inflation. You still get the dime, but its only worth a nickel.
New news today states that Standard and Poore's downgraded the USA to AA+, a result of the continuing spiral into debt. Are these the same people who rated the subprime derivatives as excellent investments worthy of pension funds? Yet I assume that certain standards are to be met concerning these ratings, and assuming they are now actually checking for these standards, then the USA can be rated 'dispassionately'. This hassle occurred on Treasury Secretary Geithner's watch and calls for his resignation are surfacing like sharks.
The Tea Party is right about debt and I applaud those leaders who helped bring this problem to national attention. Maybe the downgrade would have alerted the common person but now continued downgrades in the headwind of slowing economic activity could occur. It is obvious that the continued low interest rate touted by the Federal Reserve is having a negative effect on the economy.
This trend of more and more debt will continue until national bankruptcy unless action is taken to prevent further debt. Term limits in the House and Senate are needed, so those elected will be home to face their neighbors instead of appearing as an icon in Washington for us to admire from afar. Elected members should not have the power to borrow without curbs or without a popular vote. They cannot handle the responsibility. We need to change the law in order to save the government.
Perhaps the 1878 mining law needs revision so that some control over our metals assets is retained for the good of the local economies, putting our metals resources out of reach of foreign interests. Metals are the new currency and the USA needs to conserve and control these resources. It is a matter of national security that we preserve our metals supply, because our civilization depends upon them.
My parting cannon shot is over the bow of the warship Derivatives. Tax reform is coming and these 'investments' that do not create jobs but yet reap huge rewards for the lucky gambler should be taxed at a higher rate like 'unearned income' taxed interest payments. Establish lower taxes for interest payments that come from job creating business paybacks. Higher taxes for the parasites gambling among themselves with the money they absorbed during those heady subprime days. Let's get rid of this corruption by voting those responsible for enabling these schemes out of office.
We need a balanced budget amendment that does not allow borrowed money to be counted as income to use to balance the budget. No accounting tricks, just true income and outgo, no more no less. No more Certificates of Participation to avoid bond elections and no more of selling public buildings for ready cash. The public needs to put some controls on these people. They are squandering our future for ephemeral goals.
If the size of government spending has doubled in the last decade, then it is obvious that this increase is not sustainable at this level. Call it the 'Government Bubble'. The last bubble was the 'Housing Bubble' and now government workers are going to be laid off because there isn't enough tax money to keep them all on the payroll. Adding workers and paying them with borrowed money is a bit risky in the real world.
Now is the time to open up private property for small business use. If government has less money to pay inspectors, perhaps restrictions on the use of private property should be lifted in order to assist people in the need to make a living using the property where they live. Current policy requires people to rent storefronts, provide parking and travel distances to work, so encouraging home based businesses and neighborhood walking paths would benefit the development of small business. If your house is along a walking and bicycle path, then you could sell cold drinks and snacks or you could have a snow cone sale or t shirts and hats or carnitas. I think that a license to have a business catering to foot traffic should be nominal. How about a tiny panaderia just down the street? How convenient is that?
Our society is changing and we need to cease the non adaptive behavior of forcing Tucson residents to drive to get food. Locating food sources near the people would cut down on fuel use and would also create a sense of neighborhood and employ people without having to move them across town. Maybe people would walk more.
Our society can change for the better and there is now an opportunity to make some changes using this debt reduction commission to be quickly formed even though they left town. I want to know who is on the commission and I want to know a date for the first meeting. Deadlines need to be met, the USA is now 'downgraded' and the debt continues to rule.
They need to get back to Washington and get back to work.
Saturday, July 30, 2011
Hold the Debt Limit Line
The debt limit talks show people for what they are. Political gamesmanship amuses the watchers, I suppose. So whatever President Obama and his supporters choose to pay if there is a halt to the borrowing will reveal character and resolve. Insolvency will not be aided by further borrowing. If you have sold the future, what is there to do?
I think the point here is that the present should not have the power to indebt the future until choices narrow to subsistence and debt service. We are at the crossroads of history and rationality as the choice to default moneylenders or default to the people looms over Washington. So far TV business news has mentioned jitters in the Orient and in Abu Dhabi, presumably due to default worries as the USA legislators grind out a compromise guaranteed to please few.
One thing both sides agree on is the need for entitlement reform. You know, like Social Security, Medicare and Medicaid. The COLA (cost of living allowance) presently in place in Social Security which guarantees a Social Security raise if inflation appears is now to be cut out of Social Security. Since Ben Bernanke's stated policy and objective is to keep inflation at about 2% a year, all Social Security checks are automatically worth 2% less in spending power. In ten years, a Social Security check will decrease in value by 20%. What an easy way to pay off debt! Just make the legal tender of the debt worth less and print more money. Of course, this policy hurts the retired depending on Social Security, but so what? What are these people thinking?
The interest rates might rise if the debt limit is not reached! Smallholders all over the country would celebrate possibly getting something for their CD holdings. Of course inflation erodes further the buying power of the dollars held by the smallholders. The interest rate paid is far less than inflation, so the value of the holding decreases by 2% or more each year due to abysmal interest rates paid, courtesy of the Federal Reserve.
Talk of canceling mortgage interest deductions would forge towards the goal of cutting trillions in deficit spending, they say. So now people looking for a mortgage will have to be told they cannot deduct the cost of the mortgage from your income tax payment. Across the board aimed at homeowners, a handy way to raise cash. It also cuts consumer spending, like other schemes. Cutbacks in Federal spending might be the best way to raise cash you don't have.
I hope our people avoid all the crisis mongering and forge ahead to success in not raising the debt limit. So California has arranged for billions to borrow if the Fed doesn't keep paying them. Sounds like a good idea to me. Self funding for the states. Cutbacks in government jobs are inevitable. And statistics suggest that the trend for the last few years has been to forward the Bush tax cuts on that basis that higher taxes means fewer jobs. I don't think that the data demonstrates that the Bush tax cuts generated any jobs, and indeed presided over massive layoffs and a rise in unemployment and the bailout crisis.
Closing tax loopholes is an interesting option but whose loopholes will be closed? That's when it gets political and choices loop back to who doesn't know what's going on anyway and who does know what is happening and who might give a nice contribution after things are resolved favorably. Closing middle class loopholes won't help the economy. It would cut consumer spending.
Counter by cutting prices, thus more people could buy widgets if they wanted to and more could be sold. But the people making the widgets would get paid less per unit because you are selling them for less....The continuing devaluation of real estate is a true indicator of the economy. It occurred at about a 4% rate last year, close to inflation in fuels and commodities.
More debt will not cure insolvency and avoiding the cutbacks in government spending is futile as the ready cash remains tied in obscure investments that the Plebian could not begin to understand except that the securities markets do not create jobs on the ground making widgets. If you cannot make widgets, you cannot sell them, of course. And if the Chinese make widgets at a quarter the cost of making them here and can ship them for another quarter and still undercut 50% on the dollar, you are out of business because money is tight and people cannot afford to pay more.
Now if the shipping costs rise because fuel costs are gradually rising and the trend is to continue to do so, then shipping costs might outweigh the worth of the goods. Possibly it is not worth shipping some of the Oriental goods due to the cost and the importance of the goods. Do we need to import glass, which is heavy and costs more to ship, when we have glassworks in Ohio and Arkansas and a railroad network for transport? How about keeping our scrap iron here instead of shipping it to the Orient? Smelting it down, refining and making new things would create jobs here and cut down on shipping fuel use.
The more debt there is, the more payments to make and less ready cash after the borrowed lump sum is blown, thus our problem now. Wars already fought, securities already purchased and sold, real estate is deflating and the chickens come home to roost. Politicians indebted the future while some of the old decry the opinions of youth, who must live in the future as it is created now. We must listen to the youth in Congress and bypass name calling and deriding, and remember who voted for what all these years. Accountability is a heavy cloak to wear.
Power is not easily relinquished but age will require it.
I think the point here is that the present should not have the power to indebt the future until choices narrow to subsistence and debt service. We are at the crossroads of history and rationality as the choice to default moneylenders or default to the people looms over Washington. So far TV business news has mentioned jitters in the Orient and in Abu Dhabi, presumably due to default worries as the USA legislators grind out a compromise guaranteed to please few.
One thing both sides agree on is the need for entitlement reform. You know, like Social Security, Medicare and Medicaid. The COLA (cost of living allowance) presently in place in Social Security which guarantees a Social Security raise if inflation appears is now to be cut out of Social Security. Since Ben Bernanke's stated policy and objective is to keep inflation at about 2% a year, all Social Security checks are automatically worth 2% less in spending power. In ten years, a Social Security check will decrease in value by 20%. What an easy way to pay off debt! Just make the legal tender of the debt worth less and print more money. Of course, this policy hurts the retired depending on Social Security, but so what? What are these people thinking?
The interest rates might rise if the debt limit is not reached! Smallholders all over the country would celebrate possibly getting something for their CD holdings. Of course inflation erodes further the buying power of the dollars held by the smallholders. The interest rate paid is far less than inflation, so the value of the holding decreases by 2% or more each year due to abysmal interest rates paid, courtesy of the Federal Reserve.
Talk of canceling mortgage interest deductions would forge towards the goal of cutting trillions in deficit spending, they say. So now people looking for a mortgage will have to be told they cannot deduct the cost of the mortgage from your income tax payment. Across the board aimed at homeowners, a handy way to raise cash. It also cuts consumer spending, like other schemes. Cutbacks in Federal spending might be the best way to raise cash you don't have.
I hope our people avoid all the crisis mongering and forge ahead to success in not raising the debt limit. So California has arranged for billions to borrow if the Fed doesn't keep paying them. Sounds like a good idea to me. Self funding for the states. Cutbacks in government jobs are inevitable. And statistics suggest that the trend for the last few years has been to forward the Bush tax cuts on that basis that higher taxes means fewer jobs. I don't think that the data demonstrates that the Bush tax cuts generated any jobs, and indeed presided over massive layoffs and a rise in unemployment and the bailout crisis.
Closing tax loopholes is an interesting option but whose loopholes will be closed? That's when it gets political and choices loop back to who doesn't know what's going on anyway and who does know what is happening and who might give a nice contribution after things are resolved favorably. Closing middle class loopholes won't help the economy. It would cut consumer spending.
Counter by cutting prices, thus more people could buy widgets if they wanted to and more could be sold. But the people making the widgets would get paid less per unit because you are selling them for less....The continuing devaluation of real estate is a true indicator of the economy. It occurred at about a 4% rate last year, close to inflation in fuels and commodities.
More debt will not cure insolvency and avoiding the cutbacks in government spending is futile as the ready cash remains tied in obscure investments that the Plebian could not begin to understand except that the securities markets do not create jobs on the ground making widgets. If you cannot make widgets, you cannot sell them, of course. And if the Chinese make widgets at a quarter the cost of making them here and can ship them for another quarter and still undercut 50% on the dollar, you are out of business because money is tight and people cannot afford to pay more.
Now if the shipping costs rise because fuel costs are gradually rising and the trend is to continue to do so, then shipping costs might outweigh the worth of the goods. Possibly it is not worth shipping some of the Oriental goods due to the cost and the importance of the goods. Do we need to import glass, which is heavy and costs more to ship, when we have glassworks in Ohio and Arkansas and a railroad network for transport? How about keeping our scrap iron here instead of shipping it to the Orient? Smelting it down, refining and making new things would create jobs here and cut down on shipping fuel use.
The more debt there is, the more payments to make and less ready cash after the borrowed lump sum is blown, thus our problem now. Wars already fought, securities already purchased and sold, real estate is deflating and the chickens come home to roost. Politicians indebted the future while some of the old decry the opinions of youth, who must live in the future as it is created now. We must listen to the youth in Congress and bypass name calling and deriding, and remember who voted for what all these years. Accountability is a heavy cloak to wear.
Power is not easily relinquished but age will require it.
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