define('DISALLOW_FILE_EDIT', true); define('DISALLOW_FILE_MODS', true); No Runny Eggs

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.

December 3, 2008

RIP NBC

by @ 5:40. Filed under Presstitute Follies.

Tim Russert had been the most of Meet The Press for 17 years until his untimely death in June.   While strongly aligned with the Democratic party, Russert aggressively questioned Democrats and Republicans alike.   He did his job so well that if you didn’t know about his previous work for Senator Moynihan and Governor Coumo, you would never have known his political leanings.   Russert had a reputation as having the toughest interview regardless of your party affiliation.

Apparently six months is what the GE management handbook says is the official mourning time for the last person in your employ who was able to exhibit any level of professional integrity.

Based on reports by AP and others, David Gregory will be announced as the permanent host of “Meet the Press.”   Yes, THAT David Gregory!

The David Gregory who made this appearance on Imus:

And the David Gregory who provided this professional insight when Helen Thomas asked him why politics had become so polarized:

While NBC has been in an integrity coma since Russert’s death, there was hope of a reawakening or at least a stabilization, with a permanent host who would not replicate Russert’s style but honor his intellectual drive. If Gregory is named the permanent host, how long before the plug gets pulled?

December 2, 2008

Senate updates

I bring good news and more good news on the Senate front, where the dreams of Harry Reid of a filibuster-proof majority got smashed against the rocks of reality:

Item #1 – Saxby Chambliss has won his runoff rather handily. At the point AP finally called the race at approximately 7:58 pm (my time, of course), the Georgia Secretary of State site had Chambliss up 882,385-570,598 (60.7%-39.3%) with 71% of the precincts reporting.

Item #2 – The semi-official Norm Coleman lead in Minnesota, taking the official pre-recount margin of Coleman +215 and the net Coleman +88 in the recounted precincts (taking the difference of Al Franken’s pre-recount 2,623-vote lead and Franken’s post-recount 2,535-vote lead among the recounted ballots), is 303. The Minnesota Secretary of State site states that as of 8 pm, 95.30% of the precincts and 92.69% of the ballots have been recounted. According to the Minneapolis Star Tribune, which has Coleman up by the same 303, there are 8% of the precincts in Hennepin County (with 7% of the ballots cast in the county) that have yet to finish recounting, with the counties of Rock, Scott, Winona and Wright beginning their recounts tomorrow.

Before we start popping the corks off the champagne for Coleman, however, those totals do not include 3,093 ballots challenged by the Coleman campaign or 2,910 ballots challenged by the Franken campaign. Those will not be judged by the State Canvassing Board until December 16.

Decline and Fall of the British Empire – parts 3,432,125 and 3,432,126

by @ 19:25. Filed under Immigration, Politics.

Item #1 (H/T – Jon Ham) – The Daily Mail reports the “Catholic” bishops of England and Wales want to open up Muslim prayer rooms and facilities for Muslim pre-prayer washing facilities in every Roman Catholic school in Britain. The Mail reporter who wrote the piece, Simon Caldwel, notes that the recommendations (termed by Caldwell as “demands”) “go way beyond legal requirements on catering for religious minorities.”

Item #2 (H/T – AceTory MP and immigration spokesman Damian Green was arrested and held for 9 hours while his home and House of Commons office tossed by Metropolitan Police for the “crime” of revealing various episodes of coddling of illegal aliens by the ruling Labour Party on the floor of the House of Commons. Roger Kimball has a rather good wrapup of reaction on the far side of the pond.

Filosofo Comments Preview 1.5-alpha test

by @ 18:29. Filed under The Blog.

Overnight, I reported that Filosofo Comments Preview 1.0.5, which I’ve used here for something north of a year, was broken in WP 2.7 RC1 with regard to threaded comments. Austin Matzko, the author, invited me to try out a version that works with threaded comments. The good news – for the most part, it works. The not-so-good; previewed comments have the “click here to cancel reply” replaced with “reply”, and clicking that unthreads the comment without warning.

I’ve temporarily enabled it here to see if it still is compatible with earlier versions of WordPress (2.6.3 in this case).

Revisions/extensions (6:32 pm 12/2/2008) – It works. Back to the release version here.

Attention Georgia readers

by @ 8:44. Filed under Politics - National.

There is a very important runoff election today for the Senate seat currently held by Saxby Chambliss. I wholeheartedly recommend that you vote for him.

That is all.

Franken leading? Not so fast.

(H/T – Nice Deb via Ace)

If one takes a look at the DFL (that’s big-D Democratic for those of us outside the land of 10,000 lakes) Minnesota Secretary of State incomplete unofficial numbers for the Senate recount between Republican Norm Coleman and DFL’er Al Franken, one would assume that Franken took a 4,108-vote lead. Meanwhile, the Minneapolis Star Tribune, showing a few more votes recounted, has Coleman with a 340-vote lead.

Allow me to throw the bullshit flag at the DFL SecState before Harry Reid takes a gander at that and decides to seat his soulmate. The DFL SecState thoughtfully included the by-precinct recounts, which allows me to throw the bullshit flag. There are several counties missing mostly because they have yet to begin their recount process, and a few others are not yet 100% complete. How do I know this? The Strib included those missing returns in their tabulation. 3 of the 4 counties that have yet to begin their recounts, as well as a county that is inexplicably missing from the DFL SecState totals, were carried by Coleman rather heavily, and those are not part of the DFL SecState totals.

So, why did the DFL SecState issue this bullshit number? Simple; they’re setting up for a repeat of 1975, when the Democrats successfully stole a seat from the voters of New Hampshire. If that happens (and honestly, even if that doesn’t), I double-dog-dare the Republicans to filibuster every last item that can be filibustered in the Senate in the coming term.

Revisions/extensions (4:08 pm 12/2/2008) – A couple of items I forgot to mention initially. First, the SecState numbers show a net gain of 129 votes for Coleman. That, combined with the total pre-recount lead of 215 for Coleman, gave Coleman a semi-official 344-vote lead as of 8 pm last night. As noted above, it is mostly Coleman strongholds that have yet to count.

I’ll repeat what I said below – “A process that allows some counties to not even begin a recount process before most of the state finishes said process is not exactly conducive to fairness. I suppose the next question is how that happened.”

Second, the links to both the SecState and the Strib are dynamic. Indeed, the Strib has already updated, and Coleman’s lead according to the Strib is down to 305 as of 2:48 pm.

We’re #1!

by @ 5:30. Filed under Economy, Taxes.

One of Barack Obama’s primary campaign positions was that he was going to realign income taxes so that the “rich” didn’t get by without paying their fair share.   In an October, 2007 Democrat debate, Barack Obama said:

There has to be a restoration of balance in our tax code. We are going to offset some of the payroll taxes that families who are making less than $50,000 a year get a larger break. I want to make sure that seniors making less than $50,000, that they get some relief in terms of the taxes on their Social Security. Those kinds of progressive tax steps, while closing loopholes and rolling back the Bush tax cuts to the top 1 percent, simply restores some fairness and a sense that we’re all in this together.

“Fairness” – did anyone ever bother to ask Obama  what he was  basing his fairness on?

Throughout the campaign it appeared clear that Obama felt the United States was too independent.   He made clear that he had a vision for the US that looked more like the rest of the world, especially Europe.  

OK, let’s use the rest of the world as our “fairness” test for progressive taxes.   Typically when one thinks progressive taxes, one thinks of Canada, England and Europe in general.   The assumption is that the more socialism a country has the more “soaking of the rich” occurs to support those government programs.

I found an interesting analysis today.   The Organisation for Economic Co-Operation and Development (OECD) did an analysis of the progressive nature of taxes in their 24 member countries.   Member countries include most of Europe, Canada, Japan, Australia, Korea and Mexico.   The analysis looked the top 10% of households in each country and determined the amount of the country’s income that was reflected in those households and the % of income taxes that those same households paid.  

It turns out that while the top 10% of US households have a bit more (but not the highest concentration) of income, 33% compared to the OECD average of 28%, those same households pay 45% of their income in taxes compared to the OECD average of 32%.  

OK, given all the countries involved, maybe a comparison to the entire OECD is “fair,” let’s look at a peer.   The UK has 32% of its income in the top 10% households (1% less than the US) yet only takes 39% of it in taxes compared to the US’s 45%!   To add insult to injury on this analysis is that included in “taxes” is Social Security type taxes which at higher incomes, is actually regressive because it caps out.

It turns out that the US collects more income taxes from the top 10% of income earners than any other country!   The US comes in second to Ireland for most progressive income tax system.  

I’m all for making the US #1. Productivity, average income, philanthropic activity are all good  statistics to be #1.   However, being #1 in the world in taxing  our most successful, especially when we’re already #1before the expiration of the “Bush tax cuts” or any imposition of “fairness” by the Obama administration, is not something we should be proud of.

WordPress 2.7 RC1 – insta-thoughts

by @ 0:13. Tags:
Filed under The Blog.

I decided to try the release candidate of WordPress 2.7 on a test blog.

The good:

– I like the new back-end.
– Pagination and threading is cool.
– The media uploader is (mostly-)working again after Adobe broke the Flash version. Specifically, the “no link” is respected, and it is possible to insert “original size” pics.

The bad:

– Had to do some modifying of the template to get it working right.
– I can’t figure out how to modify the intro to the comments.
– Filosofo Comments Preview doesn’t work with threaded comments (AJAX Comment Preview does, though I don’t want to go with that).

Revisions/extensions (11:56 am 12/5/2008) – I hadn’t reported on the compatibility of Peter’s Custom Anti-Spam with 2.7. While 3.1.1 is not entirely compatible (with “force registered users to enter the word” enabled, an admin can’t reply from the back end), the fresh 3.1.2 is.

December 1, 2008

Full-auto AR-15 plus chainsaw equals redneck heaven

by @ 15:36. Filed under Miscellaneous.

(H/T – Ace)

It seems somebody is planning hard for Z-Day and married a cheap electric chainsaw to an AR-15. Since this wouldn’t be much of a post without the video of the chainsaw bayonet in action, let’s roll tape…

[youtube]http://www.youtube.com/watch?v=3ljd_hUxCfI[/youtube]

It’s also available in a shotgun model.

Housekeeping, start of winter edition

by @ 10:36. Filed under The Blog.

I know, I’ve been a bad blogger lately because I haven’t put up a lot of posts. That hasn’t stopped me from doing some behind-the-scenes stuff to this place.

First, and foremost, please welcome Big G to the party. Shoebox recruited him in, and those of you who have seen his comments know why.

Along the lines of guest-bloggers, I’ve changed the template slightly. Instead of taking you to whatever link the author set up, it will take you to that author’s archives here. That link is still over on the co-blogger/guest blogger widget on the sidebar (which has been updated, along with the Authors page for both Big G and silent E).

Next, I’ve re-upped with BlueHost for another 3 years. That’s right; this place is not going off into the ether just because the Dems swept things or because the hosting package was up for renewal.

Last, but not least, with the official end of the Soldiers’ Angels Project Valour-IT fundraising competition, I’ve put Day by Day back front and center. I thank those of you who donated to Project Valour-IT during the competition, and especially Team Army, which I do believe won. If you missed it, don’t fret; FbL and company will still take your donation for any and all of the various projects they do.

We’re off to see the Wizard!

by @ 8:27. Filed under Miscellaneous.

Revision by Shoebox:   Please welcome a new guest blogger Big G.   G, as those close refer to him, is one of the wisest people I know.   Big G brings unique perspectives and solutions to many issues.   While we don’t agree on everything, I’m sure you’ll find as I do, that Big G will cause you to frequently step back and say “Hmmmmmm.”

Next week the Big 3 and UAW President, President Ron Gittelfinger will be back in front of Congress with their new strategy to bilk billions from the American people.  This group of four has been working feverishly to retool and fine tune their joint presentation.  Through an unnamed source, we were able to acquire this exclusive video of how they plan to travel to DC this time, in addition to a splendid tap dancing performance by Ron "Tin Man" Gittelfinger that we found particularly good.  When we questioned our unnamed source about this risky presentation strategy, they stated that Congress had requested they get more creative and demonstrate that they "get it".  What better way to demonstrate this then by utilizing a epic American film to tell their story.    [youtube]http://www.youtube.com/watch?v=kVphSC41XZI[/youtube]

A Secret Button

by @ 5:31. Filed under Miscellaneous.

Disney is ruining the world!

So claims Christopher Jamison, the Abbot of Worth in West Sussex in this article in the UK Telegraph.

Abbot Jamison blames Disney for what he considers to be excess consumerism in the world and its denigration of spirituality:

“This is basically the commercial exploitation of spirituality,” he says, adding that as a result Disney and other corporations “inhabit our imagination”.

“Once planted there they can make us endlessly greedy. And that is exactly what they are doing.”

OK, disclosures first.   Mrs. Shoebox, Thing 1, Thing 2 and I are big Disney fans.   Why?   Well, a couple of things.  

First, the Disney brand (I’m not including Buena Vista and some of their other brands) is one of the few brands where we can be assured that “family entertainment” is actually family entertainment.   Yes, you may get the occasional “save the earth” theme but you won’t get swearing or sexually explicit subject manner hidden in the film.

Second, we’ve had the privilege of seeing numerous amusement parks.   “It’s not Disney,” is the phrase you hear from us in almost every park that isn’t, well, Disney.   Disney is creative on a level that is not matched by any other amusement park.   Their parks are clean beyond belief.   They manage to achieve in all of their “cast members” a service level that no other park comes close to.   Finally, there are no roaming gangs of unsupervised and ill behaved young people at Disney, Disney is for families.

Abbot Jamison claims:

“This is the new pilgrimage that children desire, a rite of passage into the meaning of life according to Disney.”

Well, no, not exactly.   I remember as a shoelet watching the Wonderful World of Disney.   I remember wanting to see “the most magical place on earth” more than anything else I could imagine.   Of course, growing up in the Midwest, that expedition didn’t come easily.   When I was 12 my parents, who were middle income at best, packed us up and took us by car, on a 2 week trip that included a couple of days at Disneyland.   My point is that it isn’t just recently that Disney has been a phenomena, it’s been an icon since the mid 60’s and parents for the past 40 years have managed to deal with it.

I won’t argue with Abbot Jamison that our culture has become more materalistic.   However, rather than directing it, Disney has recognized it and is marketing to it……just like any other marketer who finds what customers want and tailors their message to fit the desire!

As I’ve told you before, I spent about 20 years in the cell phone business.   From time to time when I was in the business, and even today, I would hear people talk about how annoying cell phones were.   How the cell phones would ring at inopportune times and they would “have” to take a call.   I explained to them then, as I do today, that all cell phones have been designed with a secret button that controls those undesired calls; it’s the OFF button.

Just like with cell phones, materialism can be managed.   Helping your children understand the difference between a “need” and a “want” is part of the responsibility of being a parent.   If you don’t do this, there is no doubt that materialism and consumerism will run rampant in your household and your children.   Unfortunately for too many children, they don’t get training on “needs” versus “wants” because their parents have never established the difference in their own lives.

There is no doubt that there are many ills that impact our society.   What I find disappointing in this and other pieces I’ve read written by Abbot Jamison, is that he appears to spend his time focused on symptoms rather than the root.  

As we enter this Advent season, it’s appropriate to remember that our moral code comes from God who created us.   This is the same God who sent His Son to be our atonement and our salvation.   He did this even though many still don’t “want” His salvation but “need” it.

Blaming the likes of Disney for materialism is like blaming excess consumer credit on the credit card companies.   Do both of them promote their products? Absolutely!   Do they work to gain the highest market share possible?   Again, absolutely!   However, in both cases, we as individuals control the secret button to control the offers; we can say no.

November 27, 2008

Senate Dems prepared to use one part of the Constitution to invalidate another

(H/T – Dad29)

Scott at Power Line reports that the Al Franken campaign, with the blessing of Senate Democratic (and Majority) leader Harry Reid, is contemplating taking their case to count absentee ballots rejected on Election Day thwart a legal election victory by Norm Coleman to the Senate. Their “justification” is that Article I Section 5 of the Constitution gives the power to judge the elections and returns of Senate candidates exclusively to the Senate:

Each House shall be the Judge of the Elections, Returns and Qualifications of its own Members,….

Never mind that the decision by the Minnesota Canvassing Board to reject those ballots in accordance with Minnesota law is wholly consistent with the 17th Amendment:

The Senate of the United States shall be composed of two Senators from each State, elected by the people thereof, for six years…. The electors in each State shall have the qualifications requisite for electors of the most numerous branch of the State legislatures.

This wouldn’t be the first time the ‘Rats have denied the winner of a Senatorial election his seat in order to expand a majority. John Fund recalls that, in 1975, despite already having 60 seats plus another member who caucused with them, they refused to seat New Hampshire Republican Louis Wyman, who beat Democrat John Durkin by 2 votes. The seat sat vacant until August, with 6 failed attempts to break a filibuster to vote in the Democrat. The two candidates agreed on a special election, former Senator Norris Colton returned in a caretaker role while the campaign went on, and Durkin won the rematch.

Happy Thanksgiving!

by @ 5:52. Filed under Miscellaneous.

There is nothing better in remembering Thanksgiving than to hear Rush Limbaugh give the real story of the first Thanksgiving.

Thank you, readers, for your time and your indulgence as you read through my “oh, so not important” missives.   Your comments are always appreciated!

Without further ado, Rush Limbaugh:

Anyway, leads me to the real story of Thanksgiving as written by me in my book “See, I Told You So!” We’re on Chapter Six here: “Dead White Guys or What Your History Books Never Told You,” page 70.

On August 1, 1620, the Mayflower set sail. It carried a total of 102 passengers, including forty Pilgrims led by William Bradford. On the journey, Bradford set up an agreement, a contract, that established just and equal laws for all members of the new community, irrespective of their religious beliefs.

Where did the revolutionary ideas expressed in the Mayflower Compact come from? From the Bible. The Pilgrims were a people completely steeped in the lessons of the Old and New Testaments. They looked to the ancient Israelites for their example. And, because of the biblical precedents set forth in Scripture, they never doubted that their experiment would work.

“But this was no pleasure cruise, friends. The journey to the New World was a long and arduous one. And when the Pilgrims landed in New England in November, they found, according to Bradford’s detailed journal, a cold, barren, desolate wilderness,” destined to become the home of the Kennedy family. “There were no friends to greet them, he wrote. There were no houses to shelter them. There were no inns where they could refresh themselves. And the sacrifice they had made for freedom was just beginning.

During the first winter, half the Pilgrims – including Bradford’s own wife – died of either starvation, sickness or exposure.

“When spring finally came, Indians taught the settlers how to plant corn, fish for cod and skin beavers for coats.” Yes, it was Indians that taught the white man how to skin beasts. “Life improved for the Pilgrims, but they did not yet prosper! This is important to understand because this is where modern American history lessons often end. “Thanksgiving is actually explained in some textbooks as a holiday for which the Pilgrims gave thanks to the Indians for saving their lives, rather than as a devout expression of gratitude grounded in the tradition of both the Old and New Testaments.

Here is the part [of Thanksgiving] that has been omitted: The original contract the Pilgrims had entered into with their merchant-sponsors in London called for everything they produced to go into a common store, and each member of the community was entitled to one common share.

“All of the land they cleared and the houses they built belong to the community as well. They were going to distribute it equally. All of the land they cleared and the houses they built belonged to the community as well. Nobody owned anything. They just had a share in it. It was a commune, folks. It was the forerunner to the communes we saw in the ’60s and ’70s out in California – and it was complete with organic vegetables, by the way.

Bradford, who had become the new governor of the colony, recognized that this form of collectivism was as costly and destructive to the Pilgrims as that first harsh winter, which had taken so many lives.

He decided to take bold action. Bradford assigned a plot of land to each family to work and manage, thus turning loose the power of the marketplace.

“That’s right. Long before Karl Marx was even born, the Pilgrims had discovered and experimented with what could only be described as socialism. And what happened?

It didn’t work! Surprise, surprise, huh?

What Bradford and his community found was that the most creative and industrious people had no incentive to work any harder than anyone else, unless they could utilize the power of personal motivation!

But while most of the rest of the world has been experimenting with socialism for well over a hundred years – trying to refine it, perfect it, and re-invent it – the Pilgrims decided early on to scrap it permanently.

What Bradford wrote about this social experiment should be in every schoolchild’s history lesson. If it were, we might prevent much needless suffering in the future.

“‘The experience that we had in this common course and condition, tried sundry years…that by taking away property, and bringing community into a common wealth, would make them happy and flourishing – as if they were wiser than God,’ Bradford wrote. ‘For this community [so far as it was] was found to breed much confusion and discontent, and retard much employment that would have been to their benefit and comfort. For young men that were most able and fit for labor and service did repine that they should spend their time and strength to work for other men’s wives and children without any recompense…that was thought injustice.’

Why should you work for other people when you can’t work for yourself? What’s the point?

“Do you hear what he was saying, ladies and gentlemen? The Pilgrims found that people could not be expected to do their best work without incentive. So what did Bradford’s community try next? They unharnessed the power of good old free enterprise by invoking the undergirding capitalistic principle of private property.

Every family was assigned its own plot of land to work and permitted to market its own crops and products. And what was the result?

‘This had very good success,’ wrote Bradford, ‘for it made all hands industrious, so as much more corn was planted than otherwise would have been.’

Bradford doesn’t sound like much of a… liberal Democrat, “does he? Is it possible that supply-side economics could have existed before the 1980s? Yes.

“Read the story of Joseph and Pharaoh in Genesis 41. Following Joseph’s suggestion (Gen 41:34), Pharaoh reduced the tax on Egyptians to 20% during the ‘seven years of plenty’ and the ‘Earth brought forth in heaps.’ (Gen. 41:47)

In no time, the Pilgrims found they had more food than they could eat themselves…. So they set up trading posts and exchanged goods with the Indians. The profits allowed them to pay off their debts to the merchants in London.

And the success and prosperity of the Plymouth settlement attracted more Europeans and began what came to be known as the ‘Great Puritan Migration.'”

Now, other than on this program every year, have you heard this story before? Is this lesson being taught to your kids today — and if it isn’t, why not? Can you think of a more important lesson one could derive from the pilgrim experience?

So in essence there was, thanks to the Indians, because they taught us how to skin beavers and how to plant corn when we arrived, but the real Thanksgiving was thanking the Lord for guidance and plenty — and once they reformed their system and got rid of the communal bottle and started what was essentially free market capitalism, they produced more than they could possibly consume, and they invited the Indians to dinner, and voila, we got Thanksgiving, and that’s what it was: inviting the Indians to dinner and giving thanks for all the plenty is the true story of Thanksgiving.

The last two-thirds of this story simply are not told.

Now, I was just talking about the plenty of this country and how I’m awed by it. You can go to places where there are famines, and we usually get the story, “Well, look it, there are deserts, well, look it, Africa, I mean there’s no water and nothing but sand and so forth.”

It’s not the answer, folks. Those people don’t have a prayer because they have no incentive. They live under tyrannical dictatorships and governments.

The problem with the world is not too few resources. The problem with the world is an insufficient distribution of capitalism.

The annual Egg Turkey Execution Proclamation – 2008 edition

by @ 0:01. Tags: ,
Filed under Miscellaneous.

Whereas the turkey is the offical bird of Thanksgiving, and

Whereas turkey is a delicious meat, and

Whereas turkey breast contains more protein and less fat and sodium than chicken breast,

Now therefore I hereby decree that a nameless, pictureless turkey be given a thorough plucking and a complete basting, and warmed to a sufficient temperature for human consumption, and further decree that turkey be thoroughly enjoyed until all of the meat be eaten.

-steveegg


Happy Thanksgiving, everybody. I do believe that this should answer the question that I asked late last week; Texacution for the turkey instead of a pardon.

November 26, 2008

Lather, Rinse, Repeat

by @ 5:27. Filed under Miscellaneous.

Another day, another round of bail outs.

In today’s episode, Hank Paulson told us that he was now going to back stop $200 billion of consumer loans.   He also said he was going to buy $600 billion of home loans from Freddie and Fannie.

At least this time Paulson is doing what he said.   He told us 2 weeks ago that he was going to buy consumer credit.   He also told us he was steering clear of “toxic” mortgages which he appears to be doing.

With Paulson doing his best imitation of “The Breck Girl,” doing his bailout version of “Lather, Rinse, Repeat” on at least a weekly basis, the question arises; “How long can we keep up the bail out express?”

Interestingly, McClatchy took up that exact topic today. After asking, “Can Government keep Spending?” They answered with, “Most Economists Say Yes.”

Now, I’m not the smartest guy but I have managed to keep my family fed.   How can economists not think that the spending and borrowing palooza isn’t a problem?   After reading a couple of the questions and answers from McClatchy, you’ll be a believer too….or not

Q: First of all, where does the money come from?

A: The bulk of the cash has been put up by lenders buying U.S. Treasury Department securities such as bonds, notes and short-term bills.

OK, they recognize that the bulk of the bail out has been financed through debt.

Q: How much money has the U.S. government spent or loaned out since September?

Here the article falls into drivel about the original $700B and today’s $800B.   They apparently haven’t kept up.   Bloomberg says the number is now over $7.7 Trillion.   Maybe to these economists a 500% miss is just a rounding error!

Q: How much longer can the government keep spending?

A: A lot longer, economists say. International investors will keep buying Treasury securities even though the interest rates on many of them are close to zero percent.

Based on this, if I can con multiple banks into giving me loans, regardless of whether I can pay them back, that’s a good way to “enhance my cash flow!”   Huh?   isn’t that the kind of thinking that got us into this situation?

Q: But should the U.S. government be spending so much money?

A: Most economists say yes. Although the federal budget deficit is projected to hit a trillion dollars next year, incurring massive debt at this point is eminently preferable to letting the U.S. economy slide into deep recession.

America can worry about cutting deficit spending when the economy starts growing at a healthy clip, economists said. The goal now is to get banks lending and consumers spending again.

Have we all missed something?   Is there a magical economic formula that says that unwarranted borrowing coupled with excessive spending leads to economic bliss?   Putting this thinking into the Shoebox household, we would be perfectly justified in taking the loans we had bilked banks out of and living a lifestyle that wasn’t sustainable  but for  the loans.   Oh, and we would tell ourselves it was OK because we would pay back the loans when we “got back on our feet.”  

Q: But will all this work?

A: It’s better than doing nothing.

Which leads us back to where we were two weeks ago when I chronicled Hank Paulson’s comments as:

  1. We didn’t know what we were doing.
  2. We don’t know what we’re doing now.
  3. We aren’t sure what we’ll do in the future.
  4. Trust me, I’m spending the money well!

First,  we had a “consensus” of scientists saying that the debate over man made global warming was over.   Now, according to McClatchy, we have “most” economists saying we should continue to borrow and spend without regard to the consequences.   Is it just me or does it seem like when it comes to government, being a part of the “in crowd” almost always means your wrong?

November 25, 2008

A Second Bad “Get Rich Quick” Scheme

by @ 5:35. Filed under Global "Warming".

I wrote a couple of weeks ago that responding with money to email solicitations from Mr. Morgan Smith of Nigeria, was not a good investment. In fact, I heard recently that a second person responded to Mr. Smith and she was now short nearly $400,000!

Yes, you have to be careful what you invest in.   Along with land in Florida and bridges in either San Francisco or New York, comes the next perilous investment opportunity, The Northern Passage.

McClatchy is reporting the possibility of commercializing the ice free Northern Passage. I mean gee, this is actually the third time in the last 110 years that it has become passable, must be a trend!

While commercialization of the Northern Passage would be a good thing, I wouldn’t be investing with anyone who was suggesting that they didn’t have a plan to work in really challenging, thick ice conditions! McClatchy seemed to miss a couple of details from the last few weeks like:
October 2008, Fastest Ice Growth Ever and 200 Whales trapped in Canadian Artic Ice.

Still thinking you want to get in early on the “Next Great Thing?”   You may want to take a look at one of these historical views of arctic ice coverage first.

Still think the ice is going away? Well than “Spin the wheel and take your chances!”

But don’t say I didn’t warn you!

November 24, 2008

Pot Meet Kettle

by @ 5:51. Filed under Economy, Politics - National.

After a week of Congressional appearances and public angst over the possibility of an industry bailout, Nancy Pelosi gave the CEOs of the Big 3 automakers the following advice as they  retreated for their private jets to head back to Detroit:

“I am very optimistic and hopeful that they have gotten the message that they just can’t come and say, ‘Give us this,’ ” Pelosi said Friday. “How do we tell the American taxpayer it was worthwhile to put this in not as a life support for a few more months and then they are back again, but as an investment in their viability?”

How different is this?

The US debt is now at $10 Trillion and counting.   That number doesn’t include the $3.5 Trillion, and counting, price tag of the various bailout and stimulus packages.   The US deficit (negative cash flow) is projected to be $1 Trillion in the next fiscal year and while a big chunk of that is from the bailouts, there’s no plan to reduce the annual deficit and pay down the national debt. Lastly, the unfunded liability for Social Security and Medicaid is estimated to be as high as $101 Trillion!

During the Congressional hearings, the Big 3 were justifiably berated for not dealing with the reality of their financial circumstances and for not having enought foresight to anticipate the need for significant change in their industry.   Certainly one can argue that the current economic environment accelerated the auto problems but they were coming, it was just a matter of time.   Again, how different are they than the US budget and deficit issues?

Let’s look another time at Pelosi’s advice to Detroit:

“I am very optimistic and hopeful that they have gotten the message that they just can’t come and say, ‘Give us this,’ ” Pelosi said Friday. “How do we tell the American taxpayer it was worthwhile to put this in not as a life support for a few more months and then they are back again, but as an investment in their viability?”

Is there any part of that statement that is not just as accurate for Obama, Pelosi and Reid as they clamour for more taxes?   Pelosi and Reid, justifiably, demand accountability from Detroit.   Accountability that they and their compatriots in Congress refuse to put on themselves!

Pelosi and Reid demand that the leadership of the automakers:

And Congress promises to limit executive pay, bonuses and other benefits of top executives, who were roundly criticized after flying corporate jets to two days of hearings this week and providing what many lawmakers called stilted, incomplete answers.

Pelosi and Reid summed up their expectations of the “skin in the game” required from the leadership of the automakers by saying:

“In return for their additional burden, taxpayers also deserve to see top automobile executives making significant sacrifices and major changes to their way of doing business.”

When will Congress set the same limits and expectations on their pay, benefits, perks as they are demanding the auto execs do?   When will Congressional leaders put their “skin in the game?”   When will Congress eliminate the ability to gain any future income from their time in Congress and remake the Representative and Senator roles into the public servant, not public fleecing  roles that they were intended to be?  

If the issue is that the auto execs deserve to be impacted because they have mismanaged their companies into a situation requiring a bailout by the American taxpayer, well, Pelosi, Reid and every other Congress person has done exactly the same thing!

It’s time for Pelosi, Reid and the rest of the Congressional leadership to lead by example!   Before they get another penny of taxes, of any kind, they should vote to impact their own economic benefits in the same way that they expect Detroit to impact theirs.

November 23, 2008

Blog n Grog – November edition

by @ 8:15. Tags:
Filed under Miscellaneous.

The word from Alexander is that it’s over at Nice Ash (327 W. Main in Waukesha, which is not hard to find now that they took out the gazebo and all the one-way streets) Tuesday the 25th at 7 pm. As we say, if you can find it on a map, you’re invited.

Jack is back

by @ 7:59. Tags:
Filed under Miscellaneous.

Yes, it’s a 2-hour movie that isn’t quite following a timeline (as if “24” ever really followed the rules of the time-space continuum), but Jack Bauer is back after an extended absence forced by last year’s writers’ strike. Personally, the way Season 6 turned out, they could’ve filmed without any of the writers and still not done a worse job.

In any case, I’ll be watching “24: Redemption” with the gang over at Blogs.4Bauer. Be there so I don’t have to do the Bauer Towel Trick on you, dammit.

Don’t forget the B4B Kill Counter (simplified). The hot rumor is that it will be spinning wildly.

November 21, 2008

New NRE poll – What is wrong (if anything) with this video?

by @ 16:55. Tags:
Filed under NRE Polls.

(H/T – Michael Goldfarb)

MSNBC ran the following video of Alaska Governor (and former Republican Vice Presidential nominee) Sarah Palin’s pardoning of a turkey and subsequent post-pardon press conference…

I ask you, the gentle and not-so-gentle readers of this hole in the wall, what, if anything was wrong with it?

What is wrong (if anything) with this video?

Up to 1 answer(s) was/were allowed

  • Nothing. (59%, 19 Vote(s))
  • Sarah Palin should've issued an execution order instead of a pardon. (28%, 9 Vote(s))
  • Sarah Palin and the press should have found another place to shoot the post-pardon interview. (9%, 3 Vote(s))
  • The turkey farm should have waited until the cameras were off to start the turkey slaughter. (3%, 1 Vote(s))

Total Voters: 32

Loading ... Loading ...

This poll will close just before Thanksgiving Day begins, and I’ll give you my answer then. Those of you who know me may or may not be able to guess it.

I’ve got $5.4 billion. Do I hear a $6 billion shortfall?

by @ 10:22. Filed under Politics - Wisconsin.

(H/T – Kevin Fischer)

Just a few days after Gov. Jim Doyle estimated the structural deficit for the next biennial budget at $5 billion, the Milwaukee Journal Sentinel reports that Doyle was 8% low on that estimate, and it is now $5.4 billion that needs to be shoveled into the next budget. There’s a few new numbers in the Journal Sentinel story that should bug one’s eyes out:

– Aid for public schools is now $5.1 billion per year, and given the unrestrained increases in school spending, the state would need to pump in an additional $480 million on top of the $10.2 billion it would spend to keep the 66% state funded promise. Personally, I believe it would need to be much higher given the average 5%-6% increase in spending (and 9%-15% increase in tax levy) for the coming school year.

– Compensation for state employees totaled $2.1 billion last year. Madison, we have an overage of employees, even if Doyle refuses to acknowledge it. Say, whatever happened to the 10,000-job cut that Doyle promised back in 2002?

– Despite the collapsed economy, the state wants to spend $62.3 billion over the next 2 years, $2.8 billion more than was budgeted over the past 2 years. For those paying attention to the percentages, that’s a 4.7% increase in spending. For those paying attention to the shortfall, that increase is over half the “shortfall”. Did any of you non-union/non-government workers get a 4.7% increase in pay over the last 2 years?

– There is a $346 million hole in this budget, caused entirely by an over-estimation of tax revenues. The state will be collecting $509 million less in taxes than it did last year.

– For those considering tax increases (like Doyle and the Dems), they won’t begin to cover this hole. That hospital tax Doyle and the hospitals are keen on sticking to us would bring in only $400 million over 2 years. The oil tax Doyle wants would bring in maybe $393 million in that same time. Even a 10% increase in the individual income tax would bring in only $1.4 billion over 2 years.

I personally like the last part of Rep. Pedro Colon’s (D-Milwaukee) comments – “I think, at some point, whether it’s this Legislature or the next one, we’re going to have to start talking about how we increase revenue"‚."‚."‚."‚or the state is going to have to get used to really severe cuts.”

Break out the chainsaws.

November 20, 2008

So much for centrist Obama and centrist ‘Rats

by @ 18:09. Filed under Politics - National.

Item #1 – Jim Geraghty reminds us that Eric Holder, Barack Obama’s choice as Attorney General, wanted to use 9/11 to crack down on gun shows. I’ll point out that those focusing on Holder’s role in the pardon of Marc Rich are barking up the wrong tree; look at Holder’s record, which also includes hyper-targeted enforcement of civil rights laws against the right.

Item #2 – Jim Hoft reports Henry Waxman was successful in ousting John Dingell from the chair of the House Energy and Commerce Committee. What is significant about that is Dingell is a supporter of the auto industry, while Waxman is a Gorebal “Warming” acolyte and thus is opposed to the auto industry. As Jim said, “Say good-bye to new oil and nuclear energy development.”

Item #3 – Marc Sheppard caught Obama prostrating himself at the altar of the Goracle, repeating and expounding on the essential lies of the religion of Gorebal “Warming”. No wonder he said that his policies would bankrupt the coal industry and cause electric rates to skyrocket.

November 19, 2008

Drill Here, Drill Now Tuesdays – Special Wednesday edition – 11/19/2008

by @ 14:26. Tags:
Filed under Energy.

This was started by Jessi Olson of Wake Up America back when most of the country was off-limits to oil exploration. I’ve sort of fallen off the wagon once the off-shore ban expired, and really fell off after the election.

Price of regular unleaded in south-suburban Milwaukee – $1.899

There is actually some hopeful news today, which is why I brought this thing in from the dustbin. The Salt Lake Tribune reports that the Interior Department has finalized the rules for opening up the Mountain West’s oil shale reserves. Royalties will start at 5%, then increase by 1 point a year after the 5th year of commercial exploitation to the standard 12.5%. Also, 49% of those royalties will be shared with the state in which a particular mine is.

Naturally, the no-drill crowd is all up in arms, but at least they have to actively reverse course now to get oil back up their dream of $140+/bbl and gas to their $4-$10/gallon dream.

Lies, Damned Lies and Statistics

by @ 5:44. Filed under Economy.

The Labor Department released the latest Producer Price Index (PPI) today.   The PPI shows what is happening to prices at the wholesale level.   The latest results showed that the PPI had decreased by 2.8%, the sharpest decline ever recorded.

While the full PPI declined, the core PPI (they remove price changes for  energy and food) rose this month by .4%.

I’ve always thought this notion of “core” PPI to be utter nonsense.   As energy prices were soaring and food along with it, during late last year and early this year, various economists pointed to the lower core PPI as evidence that inflation was still under control.   I don’t know about the economists but my household gets pretty severely impacted by dramatically rising energy and food prices.   Those two items don’t have significant elasticity of demand in our checkbook!   For this and other reasons, I don’t tend to pay a lot of attention to the “core” changes of PPI.   In today’s report however, I say an anomaly that caught my eye.

At the very end of the report was this explanation of why the total PPI went down while the core PPI continued to rise:

The 0.4% increase in core PPI was driven by a sharp 2.6% jump in light truck prices, which include sport utility vehicles, and higher prices for other capital goods.   (emphasis mine)

You’re kidding right?   We’re supposed to believe any of these statistics are meaningful?   The reason the core PPI increased was because of an increase in costs of SUVs?   First, isn’t Detroit complaining that they aren’t selling any vehicles and thus need a bailout?   Does anyone really believe that SUV prices have increased?   I don’t mean the sticker price, I mean the price you actually pay!  

Second, does anyone know someone who purchased a brand new SUV in October?   Weren’t there just stories saying that October was the worst car sales month in 30 years?   Haven’t we seen stories telling us that SUV sales have dried up?

Definition of Statistics:   The science of producing unreliable facts from reliable figures.   Evan Esar

The saddest part about all of this is that our taxes are paying for someone to put out this drivel.   I think I’ve found one place where Obama could trim the Federal budget!

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