Quote of the day--on the national deficit

So, why, exactly, can't we have a jobs bill for Americans, especially so we can repair our infrastructure?

Seriously.

Link to original article--get it all here:  What People (Don't) Know About The Deficit

"Hell to pay" in Kansas and the plains states

The New York Times ran an important article today (one more), this time on the Great Plains overall but Kansas, in specific, and how our water aquifers below ground are running dry:

Wells Dry, Fertile Plains Turn to Dust

Just a bit from the article:

HASKELL COUNTY, Kan. — Forty-nine years ago, Ashley Yost’s grandfather sank a well deep into a half-mile square of rich Kansas farmland. He struck an artery of water so prodigious that he could pump 1,600 gallons to the surface every minute.

Last year, Mr. Yost was coaxing just 300 gallons from the earth, and pumping up sand in order to do it. By harvest time, the grit had robbed him of $20,000 worth of pumps and any hope of returning to the bumper harvests of years past.

“That’s prime land,” he said not long ago, gesturing from his pickup at the stubby remains of last year’s crop. “I’ve raised 294 bushels of corn an acre there before, with water and the Lord’s help.” Now, he said, “it’s over.”

...Vast stretches of Texas farmland lying over the aquifer no longer support irrigation. In west-central Kansas, up to a fifth of the irrigated farmland along a 100-mile swath of the aquifer has already gone dry. In many other places, there no longer is enough water to supply farmers’ peak needs during Kansas’ scorching summers.

And when the groundwater runs out, it is gone for good. Refilling the aquifer would require hundreds, if not thousands, of years of rains.

This is in many ways a slow-motion crisis — decades in the making, imminent for some, years or decades away for others, hitting one farm but leaving an adjacent one untouched. But across the rolling plains and tarmac-flat farmland near the Kansas-Colorado border, the effects of depletion are evident everywhere. Highway bridges span arid stream beds. Most of the creeks and rivers that once veined the land have dried up as 60 years of pumping have pulled groundwater levels down by scores and even hundreds of feet.

On some farms, big center-pivot irrigators — the spindly rigs that create the emerald circles of cropland familiar to anyone flying over the region — now are watering only a half-circle. On others, they sit idle altogether.

Two years of extreme drought, during which farmers relied almost completely on groundwater, have brought the seriousness of the problem home. In 2011 and 2012, the Kansas Geological Survey reports, the average water level in the state’s portion of the aquifer dropped 4.25 feet — nearly a third of the total decline since 1996.

And that is merely the average. “I know my staff went out and re-measured a couple of wells because they couldn’t believe it,” said Lane Letourneau, a manager at the State Agriculture Department’s water resources division. “There was a 30-foot decline.”

And as it says above, we see this coming and we've seen it coming. There have been warnings. We can't go on like this forever. It isn't, it wasn't sustainable. We can't just take and take and take.

Something's got to change.

What has struck me most about our current situation, both about drought and the 2008 financial crisis, the worst in 80 years, since the Great Depression, is that it is, in those two ways--the financial crisis and drought--so very much like those years, the 30's. That is, people hurt by both the financial crisis and the drought.

In the case of the Depression, it was all man-made.

Turns out, really, it could be argued this one is, too.

As if that isn't enough, Robert Reich, writing from Europe today, posts the following on Facebook:

At a time when you'd expect nations to band together to gain bargaining power against global capital, the opposite is occurring: Xenophobia is breaking out all over. 

Here in Britain, the UK Independence Party -- which wants to get out of the European Union -- is rapidly gaining ground, becoming the third most popular party in the country, according to a new poll for The Independent on Sunday. Almost one in five people plan to vote for it in the next general election. Ukip's overall ratings have risen four points to 19 per cent in the past month, despite Prime Minister David Cameron's efforts to wrest back control of the crucial debate over Britain's relationship with the European Union. 

Right-wing nationalist parties are gaining ground elsewhere in Europe as well. In the U.S., not only are Republicans sounding more nationalistic of late (anti-immigrant, anti-trade), but they continue to push "states rights" -- as states increasingly battle against one another to give global companies ever larger tax breaks and subsidies. 

WWIII, anybody?

One last thing from Facebook today that wraps this all up:

Anyone care yet?

Additional link: 

When the Wells Go Dry in the Great Plains

Economy Improving

Two recent indications the national economy is improving, in spite of the Republicans and Congress:

Housing starts climb to highest rate since June 2008

Economy, Year-End Sales Help Auto Industry In 2012

and not to be done there but the indications for 2013 don't look completely bleak, either:

2013 Auto Sales Will Be Strong, Firm Predicts

Imagine, then, if Congress didn't fight our president on the economy, at least.

Imagine what we could achieve.

Better off before Obama?

The George W. Bush administration saw the largest terrorist attack in US history, a 3 trillion dollar war based on lies that killed more than 4415 American soldiers and the largest Wall Street crash since the Great Depression, but somehow the Republicans claim we are worse off with President Obama.

That's chutzpah.

Question of the day

"Why is the response to economic crisis not more serious?"

Link to original article, well worth reading: http://blogs.reuters.com/anatole-kaletsky/2012/07/12/why-is-the-response-to-economic-crisis-not-more-serious/

Breaking news--on Japanese markets

BREAKING -- Tokyo Stock Market Opens at 28-year LOW amid global concerns over economy.

Source: Veracity Stew

Heads up, kiddies--dump those stocks now.

Or as soon as possible.

That 274+ points we lost Friday may look good by end of day.

Wishing us all good luck.

A desperate note to our representatives in Washington and Jefferson City

This "desperate note" goes out today to both our US senators--Roy Blunt and Claire McCaskill--and to every state and national representative whose districts cover Interstate 70, from St. Louis to Kansas City.

Here's the deal.

We need jobs.

We need more business.

We need a good, strong, working economy.

You know this. We know this.

We want it. We all agree.

What we don't necessarily agree on is how we get there.

What I'm proposing today is how we do that--how we get to a good, stronger, working, healthier economy.

The answer is suggested here, in this column from The New York Times (along with other posts here, from this blogger):

Repairing Roads Can End All Kinds of Gridlock

(It's a great article. You ought to check it out, if you can. Link at bottom).

And the heck of it is, we have the prime candidate to repair right here in our own state in our own I-70 from, again, St. Louis to Kansas City.

Let's be honest here, I70 is one narrow, dangerous, outdated, even deadly stretch of road, all across Missouri. It needs to be repaired and widened desperately. And as soon as possible.

Precious little is being done about it out of Missouri's state capitol right now, too. Nothing is to happen until next year, when they reconvene and even then, they will only be voting to begin a study on its improvements.

In the meantime, we're both going slower across the state and--worst of all--people are being killed due to the narrow, unsafe conditions. It's fact.

This would help the state both in jobs, in the shorter term, and better transportation, in the longer.

The benefits are many.

And not only would people here in Missouri benefit but every American and visitor who travels that road would benefit in safety and speed so it's not a totally state-selfish request here.

We need this. We need I70 widened and improved for all the right reasons.

It needs to happen sooner, rather than later.

People in Jefferson City and Washington should be making this happen.

Senators? Would you maybe take the lead here?

Please?

In return, I also propose that maybe we name I-70 from Columbia to St.Louis the "Senator Roy Blunt Memorial Highway" and from Columbia to Kansas City, the "Senator Claire McCaskill Memorial Highway."

But that's only if you work together on this.

As you should, anyway.

Link: http://www.nytimes.com/2012/06/03/business/road-repairs-can-end-political-gridlock-economic-view.html?_r=1&ref=barackobama

KC in Wall Street Journal today

There's an article in The Wall Street Journal today, describing the current national commercial office space situation in the country. It uses our own City Center Square as an example as it has about a 50% occupancy rate at present: Trouble Is Brewing for Office Market

The coverage is brief in the article: "A 660,000 square-foot office building in downtown Kansas City, Mo., is trying to renegotiate its $40 million mortgage with creditors, according to Trepp. The property's vacancy rose to 48% in 2010 when a major tenant, Dickinson Financial Corp. didn't renew its lease.: The sky isn't falling but it is cloudy, at least, it seems. As if we didn't know that. Link: http://online.wsj.com/article/SB10001424052970203436904577153003477512394.html?mod=residential_real_estate

Paul Krugman called the President's speech yesterday "The Most Important Speech of His Presidency"

Yes he did. A bit of it: "The President’s speech today in Osawatomie, Kansas — where Teddy Roosevelt gave his “New Nationalism” speech in 1910 — is the most important economic speech of his presidency in terms of connecting the dots, laying out the reasons behind our economic and political crises, and asserting a willingness to take on the powerful and the privileged that have gamed the system to their advantage." From Mr. Reich: "Here, finally, is the Barack Obama many of us thought we had elected in 2008. Since then we’ve had a president who has only reluctantly stood up to the moneyed interests Teddy Roosevelt and his cousin Franklin stood up to. Hopefully Obama will carry this message through 2012, and gain a mandate to use his second term to take on the growing inequities and game-rigging practices that have been undermining the American economy and American democracy for years." The rest here--it's a good and actually rather important read for all of us: http://robertreich.org/post/13852130536

George Soros says what we all fear most

For anyone and everyone remotely following the EU, their debt and the Euro countries, with their financial messes, this George Soros quote sums it up for us, likely: "Global Financial System In 'Self-Reinforcing Process Of Disintegration.'" He says "Developed countries are falling into a 'deflationary debt trap,' in which consumer spending falls, products become more expensive, tax revenues drop, and sovereign debt grows..." and we fear he's right but hope--against hope?--he's wrong. Link: http://www.huffingtonpost.com/2011/12/05/george-soros-global-financial-system_n_1129210.html

It's an old problem, folks

The already-wealthy, taking far too much of the national wealth, through tax cuts, tax credits for corporations, etc. It's not a new situation to us or this nation. Don't think otherwise.

Quote of the day

"Mr. Obama’s proposals, including the taxes to pay for them, could not be more urgent. There is a crater in the economy where the job market used to be." - The New York Times editorial. Link to original post: http://www.nytimes.com/2011/09/14/opinion/fixing-the-economy-a-good-jobs-program.html

Something to keep in mind as the economy seems to get worse

Riots in Greece and across Europe. Can it happen here? Food for thought: "If inequality continues to increase relentlessly, it seems likely that major social disruptions are inevitable. What people should keep in mind is that the U.S. has the weakest social safety net of any advanced country." --"Martin Ford, Founder, Silicon Valley-based software development firm. Links: http://www.huffingtonpost.com/martin-ford/could-we-have-civil-unres_b_906478.html; http://www.ritholtz.com/blog/2011/07/raging-inequality-may-cause-unrest-and-violence/

A KC "Convention Hotel"?

Oh, please.

I mean, even I want a brand new C-Class Mercedes Benz sedan, just like some here in KCMO want a convention hotel in downtown KC that would add 1000 rooms to the city so we could hold larger conventions but we just have way too many things going against us right now.

First, we simply don't have the money.  In spite of what the outgoing mayor said or says, we are not in some great financial situation where we can pull money out and help pay for the thing.

Second, check this out from The Kansas City Business Journal:

Fitch downgrades KC bond rating because of threat to earnings tax

Kansas City Business Journal
Date: Tuesday, February 22, 2011

The specter of Kansas City losing its earnings tax revenue caused a major ratings agency to downgrade its score on the city’s general obligation bonds.

Fitch Ratings assigned a AA rating Kansas City’s general obligation bonds, down from the previous AA+ score.

Fitch’s report on Tuesday attributed its downgrade to the unstable future of 1 percent Kansas City’s earnings tax, which provides about $200 million a year in revenue.

“The downgrade reflects the greater inherent risks to the city’s financial performance and overall vitality created by the new initiative requiring voter approval of the continuation of the city’s principal revenue source every five years,” the Fitch Ratings report said.

The downgrade could make the cost of issuing and financing bonds more expensive.

So we don't have the money and we don't, likely, have the credit or credit rating to do it, either.

Added to this situation is that this is the worst economy in literally 80 years, since the Great Depression of the 30's and you just don't have the scenario to make a large convention hotel in downtown KCMO happen right now.  Maybe in years to come.  Maybe.  If the economy locally, state-wide and nationally comes back but no one foresees that happening anytime too soon.

As a few people wrote over on the TKC blog, this should put an end to the whole erasure of the e-tax but the way voters are and the way this issue is, who can say what will happen come election day?  

One thing is certain--election day is going to be fascinating if for no other reason than the vote on the e-tax.  Let's hope it's "good fascinating" and not "depressing fascinating."

Link to original story:  http://www.bizjournals.com/kansascity/news/2011/02/22/fitch-downgrades-kc-bond-rating.html?ana=RSS&s=article_search&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+bizj_kansascity+(Kansas+City+Business+Journal)

So let's change it

CBS' show tonight, "60 Minutes" mentioned that we have given AIG $160 billion dollars, in an effort to prop them up and continue their organization because it was "too big to fail."

$160 billion.

Yow.

Can you imagine what we could have done with that for our schools?

Since we've come to the conclusion that they were this vague "too big to fail", it seems important to state that, when and if we come out on the other side of this financial crisis--God willing--then it's going to be time to break up AIG.

No organization should be "too big to fail."

If their size weakens our country, then this conclusion is surely unavoidable.

Let's dismantle AIG, and as soon as possible.

Chill, people

For everyone paying attention to what's going on nationally and internationally, financially and economically--and particularly for those who aren't--it's important to see that we all need to get good information about what is going on and stay calm.

It's easy to see, already, how the demagogues in the past--say, WWII and before that, in the Great Depression--got started and got their audiences.

Awful things happen--and are happening now. We go into new territory of one kind or another--in our case, financially--and people become overcome by fear and a lack of knowledge.

Instead of listening to calm, cool, informative sources of news like National Public Radio (NPR) and PBS-TV (Public Broadcasting System) because, heck, it's dull, they either watch horrible, one-sided, emotional knuckleheads like this Larry Kudlow guy on CNBC--who's constantly yelling out at us on the television--or they listen to "Porkulus", Rush Limbaugh on the radio. (I was on vacation for a few days and got trapped into seeing and hearing Kudlow. Sheesh. What a blow-hard.)

So instead of getting intelligent information and news, they get rumors, viewpoints and emotion.

And that is no way to make any headway and success on where we are and what we need to do.

So I'm clear on this, let me also say that we can't just listen to the likes of "Mr. Sanctimonious", Keith Olbermann, or Jon Stewart for our news, either. We have to know what's truly going on. No "slant" to it.

Public radio and TV are more important right now than probably ever before.

So let's chill, people. Let's either read and listen to non-biased sources of information as much as humanly possible, or shut the hell up.

Let's stop pretending

Okay, the "stimulus package" is going to pass, for better or worse, it seems.

All the economists say for the better so let's stick with those people. It's an economy, after all. They should know what they're talking about.

But let's stop pretending we live in a capitalistic, free-enterprise society any longer. (Beats being in an oligarchy, in my view).

Geez, between W's 350 billion dollar give-away, right at the end of his 8-year reign of terror and this apparently necessary, nearly one trillion dollar prop-up of the economy, and the fact that the government now owns so many banks and that they're going to own a bunch more this year, let's stop living in the past or kidding ourselves or out-and-out lying to ourselves or whatever it is we're doing.

The United States is now, truly, officially, a socialistic state, at minimum.

We probably were--and still, likely are--some form of oligarchy where the rich rule--and so many of us like it that way, clearly. But we are no longer a free-enterprise, capitalistic group of people.

No way.

Have you seen or heard what's in the apparently necessary boondoggle that was passed Friday night? Here's a glimmer:

• $3.5 billion for energy-efficient federal buildings (original bill $7 billion)

• $75 million for Smithsonian

• $600 million for Environmental Protection Agency Superfund (original bill $800 million)

• $327 million for National Oceanic and Atmospheric Administration

• $100 million for law enforcement wireless

• $300 million for federal fleet of hybrid vehicles

• $300 million for FBI construction

Don't get me wrong. I'm a follower of Paul Krugman (professor of economics and international affairs at Princeton University, centenary professor at the London School of Economics, op-ed columnist for The New York Times and winner of the Nobel Memorial Prize in Economic Sciences last year) and he has made it very clear he thinks this stimulus is very important for the country, to the point of keeping us out of, in his words, a "catastrophe".

But there is both a huge bundle of "pork" in this bill and it furthers the Federal Government's extension into our lives. This extension being financial.

And then there's the fact that it seems insane to try to fix a financial problem that grew out of everyone--banks, individuals, companies, everyone--having and using too much credit.

Finally, there's the whole idea that this will likely cause a great deal of inflation.

That's a lot of things to go against this bill and the ideas behind it.

But what, exactly, are we supposed to do, as a country and as a people, to keep the country from spiraling down, into a 2nd "Great Depression", if we don't do this?

Is there some other option?

If there is, no one's come up with it.

Krugman has also made it clear he thinks the package should also, possibly, be even bigger.

Wrap your mind around that one.

I will say that building the bridges and roadways we need seems necessary and smart. Same with switching us to clean, renewable energy as soon as is wisely possible.

But are we just supposed to let everything fall apart and then try to clean up the mess?

That doesn't seem like a good option.

So this is the path we're going down.

It seems like our only option.

Let's hope it is.

Just don't expect any details. I've spent some time looking and there's nothing out there to tell us what's in this boondoggle.

A George Bush "Three-fer"

Over the last 8 years of the George W. Bush Administration, I have not--even once--been able, frankly and honestly, been able to say anything good or positive about anything that came our of either this White House or the President's mouth.

It's absolutely not that I could not or would not give him a chance or a "benefit of a doubt."

If he said or thought or sponsored something intelligent, I'd have been the first to note it, here or with friends or something.

Honestly.

I would have.

So it's been quite a drought.

Then, suddenly, in the last few weeks, I've been astonished to note some things W said that were, dare I say it? Bright? Right? Intelligent?

Geez.

Even I'm stunned.

The biggest, so far, has been his reluctant but correct support of loans to the Big 3 automakers.

I mean, come on, what else could he have done? He would have beat out Herbert Hoover for the "Most Do-Nothing President of All Time" Award.

The Great Depression would have been overshadowed by the mess we'd be in if he and the government walked away from our auto-making industries.

Well, now, here he comes with a three-fer.

George Walker Bush gave us the third correct, intelligent thing out of his Presidency this weekend.

I was shocked.

Sure, back in February of this year, the President "described President Robert Mugabe of Zimbabwe as a 'discredited dictator,' sharpening his criticism of one of Africa's most stridently anti-American leaders on the eve of a trip to the continent." (original link here: http://www.iht.com/articles/2008/02/14/africa/bush.php)

And sure he was right then but this, from this weekend, was much truer and more spot-on: "'As my Administration has made clear, it is time for Robert Mugabe to go,' Bush said in a statement issued by the White House. 'Across the continent, African voices are bravely speaking out to say now is the time for him to step down.'"

“'These leaders share the desire of ordinary Zimbabweans for a return to peace, democracy, and prosperity,'” the U.S. president said. “'We urge others from the region to step up and join the growing chorus of voices calling for an end to Mugabe’s tyranny.'” (original link here: http://www.christianpost.com/article/20081210/bush-tells-mugabe-to-resign-with-zimbabwe-in-shambles.htm)

Fortunately, Zimbabwe doesn't have oil or he might be talking about going in and taking him out militarily.

Anyway, it seems that Mr. Bush is really trying hard to have a good legacy after all, what with all these final truths and "rights" coming out of his mouth.

After 8 years of not believing what I hear, it's a big, welcome surprise.

I have to get used to this.

Fortunately, our time with him is almost over so I don't have to get too used to it.

Besides, in the "back door" of our government, his minions are still trying to tear everything else down that they can, like EPA rules for mining, etc.

Yeah, I was blown away, too

After getting together with friends this evening, for dinner, I realized I wasn't the only one who was a bit blown away, emotionally, of all things, by Senator Obama's "informercial" last evening.

It seems the pictures and videos and testimony were all a bit more than at least some of us were expecting.

It reminds me so much of what I think people thought and felt for first John Kennedy and then his brother, Robert.

See if you don't see more suggestions of that comparison in time to come. I think you/we all will.

Anyway, the closer we get to the election, the more overwhelming it all seems. The more incredible it seems, that Barack Obama will be President. (I'm pretty darned sure).

(And I am SO FREAKIN' SICK of this election, otherwise).




On a side note--back to the real and scary world of economics--did anyone see this following little tidbit?

"The Federal Reserve agreed to provide $30 billion each to the central banks of Brazil, Mexico, South Korea and Singapore, expanding its effort to unfreeze money markets to emerging nations for the first time."

See the story link here:
http://globaleconomicanalysis.blogspot.com/2008/10/fed-expands-swap-o-rama-to-brazil.html

That's 120 BILLION DOLLARS, all at once, to Brazil, Mexico, South Korea and Singapore.

Holy cow. We're talking real money here.

This all brings on a few rather significant questions, I think:

1) Holy spreadsheet, Batman, what is our government doing??

2) Is what the government is doing the right thing? (Are they the right things?)

3) Who's REALLY in charge of our government right now?

4) Are we going to regret this in short order?

5) Are the people "in control" REALLY in control?

6) Are these same people (you know, the ones in "control") sure of what they're doing?

7) Aren't we throwing one heck of a lot of money around and rather helter skelter, at that? (In the billions, regularly).

8) Are the people in charge REALLY certain of the ramifications of what they're doing?

9) Are some of the things we're doing counterproductive with some of the other things we're doing, simultaneously?

10) Can we be certain of our answer(s) to no. 9 above?

11) Can we be certain of our answers to any and all of the questions above?

12) Are the people in charge certain of the answers to any and all of the questions above?

13) What other "unkowns" are out there that we're unaware of?

14) Are we--all of us, even the ones in charge--totally winging it and in completely new, unidentified territory here, so they really AREN'T sure of what they're doing? (I'm afraid the answer here is a certifiable "yes").

Whole lotta questions, goin' on.