No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Archive for December 29th, 2010

Best comment surrounding the Birther horse manure

by @ 22:34. Filed under Politics - National.

This gem from James Wigderson on the desire of incoming Hawaii governor and Obama family friend Neil Ambercrombie (D) to unseal Barack Obama’s birth certificate is priceless:

I think some people will just remain convinced that Obama isn’t a citizen even if the afterbirth can be produced with a chain of custody documenting the source, DNA tests, and video of the birth with a “Welcome to Hawaii” sign in the background. Oh yeah, and Don Ho playing the music on the video soundtrack.

The sad thing is, that isn’t just comedic gold.

It’s good to be king…just for a while – Milwaukee County edition

by @ 21:46. Filed under NRE Polls, Thug Holloway.

Noted slumlord and abuser of fellow Milwaukee County Supervisors Lee Holloway is now acting Milwaukee County Executive, and he hasn’t disappointed those who expected new lows to be set. Despite the 30-day tag on his rule (or at least this stage of his rule), he wasn’t satisfied with just one judge administering the oath of office, inviting disgraced former County Executive F.(U.) Thomas Ament (the guy who signed into law the multi-million-dollar pension grab in 2000 that, when it finally came to light in 2002, cost him and several supervisors their jobs in recall elections) to the ceremony as an honored friend, or summarily firing the housing director (highly ironic since Holloway and his wife are facing legal action from the city of Milwaukee for numerous code violatoins on rental property they own), or laying out a massive tax-and-spend agenda that will by necessity take far more than either the 30 days he has before he has to name an “interim” County Exec (most-likely himself because he temporarily gave up the Board Chairmanship) or the 3 1/2 months before an elected replacement takes office (yes, he’s running). The latest is the revelation that he assembled a 32-member transition team.

Revisions/extensions (7:03 am 12/30/2010) – In the 5 o’clock hour, WISN-AM’s Jerry Bott and Ken Herrera pointed out that, in Holloway’s announcement that he was running for the remainder of the term, he used street putdowns on his potential challengers, conservative and ultra-liberal alike. Since nobody hit the poll yet, I simply added it to the poll.

I guess it’s time for a new NRE Poll…

What is the most outrageous aspect of Lee Holloway's assumption of the powers of Milwaukee County Executive?

Up to 1 answer(s) was/were allowed

  • Despite the city of Milwaukee taking legal action against him for numerous code violations at his rental properties, he fired the county housing director. (38%, 5 Vote(s))
  • He invited disgraced former executive F.(U.) Thomas Ament to the swearing-in ceremony as an honored friend. (31%, 4 Vote(s))
  • Despite the 30-day nature of the "acting" title, he requires 32 people in his transition office. (23%, 3 Vote(s))
  • He laid out a massive tax-and-spend agenda that will take far longer than the 30 days he has as acting exec or the 3 1/2 months before an elected replacement takes office. (8%, 1 Vote(s))
  • He needed not one, but two judges to administer the oath. (0%, 0 Vote(s))
  • He couldn't pass up using street putdowns of all his potential challengers. (0%, 0 Vote(s))

Total Voters: 13

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It’s also time for some appropriate music…

[youtube]http://www.youtube.com/watch?v=PvIz_GXKUss[/youtube]

Wednesday’s Hot Read – The Chilean Model

by @ 8:46. Filed under Social Security crater.

(H/T – Fausta)

The Investor’s Business Daily editorial board noted the phenominal success story that the privatized Chilean social security system has become:

(Then-labor minister Jose) Pinera’s proposal began with scrapping the payroll tax on the country’s social security system and inviting all workers to take the money they were contributing and move it into a private pension.

Workers would be free to choose the fund, how much to put in, and at what age they would retire, with a minimal safety net built into the design. Past contributions would be refunded to workers by government bond. And anyone who didn’t like the idea was free to remain with the system as it was. It was a huge success: 95% of Chile’s workers chose the private system.

Pinera told the public to expect a compounded 4% rate of return under the private plan. But as of 2010, the average annual rate of return was 9.23%, far higher than promised.

By contrast, the U.S. social security system, which today accounts for a quarter of the U.S. government budget, is slated to give retiring workers in the next decade a 1% to 2% rate of return. And those entering the system today will see a negative return.

In order to compare apples to apples, one has to compare the rate of return to inflation. The bad news is Chile’s inflation averaged 10.72% between 1981 and 2009, which means the 9.23% rate of return only covered 98.7% of inflation. The ugly news is that is still better than the SocSecurity rate of return compared to the likely rate of inflation over the next decade, in which the rate of return is expected to cover barely 98% of inflation.

Let’s move to the effect on government finances:

Chile’s implicit pension debt fell to just 6% of GNP — compared with 100% in the U.S., 300% in France and 450% in Italy, leaving Chile with no net debt.

Better still, the accumulated savings in the pension funds fueled Chile’s spectacular economic ascent, taking real incomes from about $4,000 per capita in the early 1980s to $15,000 today, and GDP to the 6% range most years for nearly 20 years.

That, folks, is the real payoff; a government and a people able to weather economic storms that is sinking the rest of the world. Even when one takes out the dysfunctional Disability Insurance, the cost of providing the benefits of the Old-Age and Survivors Insurance (including a transfer of funds to cover railroad retirees) outstripped the taxes paid by $2.14 billion on $577 billion of benefit payouts, and $6.06 billion on $580 billion in total program cost, in FY2010. That’s $6.06 billion that, because of the nature of the “Trust Funds”, the Treasury had to borrow, which gives the lie to the accounting trick that counts “interest earned” by said “Trust Funds” as income into Social Security.

With the level of publicly-held debt rapidly approaching 100% of GDP, and current trends showing that increasing at an exponential rate, how long can it be before everybody stops buying US Treasuries? The first time that happens, the value of those “Trust Funds” will be $0.00, and we’ll be up a swollen Shit Creek without a paddle.

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