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McCain's Convenient Untruth
When it comes to fighting wars, John McCain stands up and calls for sacrifice. "We never hide from history; we make history," he declared in his convention speech. But when it comes to taxes, McCain is unwilling to demand even a teensy bit of sacrifice. In a McCain administration, Americans would not have to surrender a dime more of their money to a cause larger than themselves.
Why this bipolar attitude toward sacrifice? Start with the answer that McCain himself provides. "My tax cuts will create jobs. His tax increases will eliminate them," he said at the convention, offering one of the speech's few policy contrasts between Obama's platform and his own. In other words, McCain is not calling for tax sacrifice because he believes it would be counterproductive. On taxes, he is saying, you can selfishly avoid sacrifice -- and serve the public good.
This, unfortunately, is a convenient untruth. Tax hikes taken to an extreme can indeed backfire, harming growth and job creation. But it's a stretch to assert that Barack Obama's tax plan would do that. And it's downright scandalous to pretend that the economy can be strengthened in anything other than the short run by unaffordable tax cuts.
Obama is not proposing to raise taxes for most Americans. To the contrary, he would triple the earned-income tax credit for low-wage earners, increasing work incentives at the bottom. He would cut taxes on people in the middle -- indeed, he would do so more aggressively than McCain would. It is only the wealthiest Americans who would face higher tax bills under Obama. According to the nonpartisan Tax Policy Center, Obama's plan would require the richest 1 percent of Americans to sacrifice a modest 1.5 percent of their after-tax income in 2012. By contrast, no-sacrifice McCain would award America's elite a 9.5 percent increase.
How might this impact jobs and the economy? Under Obama's plan, top earners would pay a marginal federal tax rate of maybe 46.5 percent (that includes the Medicare tax and Obama's proposed hike in Social Security taxes), considerably more than the 37.9 percent they would pay under McCain. There's no doubt that Obama's higher tax rates would mean weaker incentives to work, take risks and innovate; and stronger incentives to waste time and effort on avoiding the tax man.
But those bad effects must be weighed against a good one: Higher tax rates mean a lower budget deficit. According to the Tax Policy Center, over the course of a decade Obama's plan would result in a national debt $1.2 trillion smaller than you would get under McCain's plan. Less government borrowing ultimately means lower interest rates and more private investment. This positive effect may well outweigh the blow to growth and jobs from weaker work incentives.
Tax hikes, in other words, are not automatic job destroyers. Joel Slemrod of the University of Michigan, a top expert on this subject, says bluntly, "There is no compelling evidence that a low-tax strategy is better for the economy over the medium or long run." Just look at the Clinton era. In 1993, the top marginal rate (income tax plus Medicare) was raised to 42.5 percent -- the same rate that Obama proposes but minus the candidate's proposed increase in the payroll tax. During the rest of the Clinton period, the economy generated millions of new jobs, and careful academic postmortems find that the 1993 tax hike caused little to no damage to the incentives of top earners. When it comes to fighting wars, John McCain stands up and calls for sacrifice. "We never hide from history; we make history,"... more -
Save the home lenders, save the world?
If only it were that simple.
The just-announced federal takeover of Fannie Mae and Freddie Mac, the giant mortgage lenders, was certainly the right thing to do — and it was done fairly well, too. The plan will sustain institutions that play a crucial role in the economy, while holding down taxpayer costs by more or less cleaning out the stockholders.
But Sunday’s action needs to be seen in a larger context — that of the attempt by the Federal Reserve and the Treasury Department to contain the fallout from the ongoing financial crisis. And that’s a fight the feds seem to be losing.
We’ve come a long way from the days when Alan Greenspan declared a national housing bubble “most unlikely.” There was indeed a bubble, and since it popped two years ago home prices have fallen faster than they did during the Great Depression.
Falling home prices, in turn, have led to the much-feared phenomenon of “debt deflation.” Yes, deflation: prices are going up at the checkout counter, but the prices of assets, which are what matter for balance sheets, are dropping fast.
As the economist Irving Fisher observed way back in 1933, when highly indebted individuals and businesses get into financial trouble, they usually sell assets and use the proceeds to pay down their debt. What Fisher pointed out, however, was that such selloffs are self-defeating when everyone does it: if everyone tries to sell assets at the same time, the resulting plunge in market prices undermines debtors’ financial positions faster than debt can be paid off. So deflation in asset prices can turn into a vicious circle. And one consequence of what he called a “stampede to liquidate” is a severe economic slump.
That’s what’s happening now, with debt deflation made especially ugly by the fact that key financial players are highly leveraged — their assets were mainly bought with borrowed money. As Paul McCulley of Pimco, the bond investor, put it in a recent essay titled “The Paradox of Deleveraging,” lately just about every financial institution has been trying to reduce its leverage — but the plunge in asset values has nonetheless left these institutions with more debt relative to their assets than before.
(con't) If only it were that simple. ... more -
KY Senator and Congressman lead Klan Rally w/o the sheets.
Shortly after voteing against a cap on interest rates for preditory lenders, Davis starts up micro-finance company. Sen. Mitch McConnell is known as Bush's obstructionist in the Senate. These are two of the biggest supporters of sending your tax dollars to the accounts of oil and coal companies. The current bill before the house on offshore drilling not only gives 2 1/2 billion to big oil but also gives 1/2 billion to coal. And yes, the misinformation ads have already started here in KY. Shortly after voteing against a cap on interest rates for preditory lenders, Davis starts up micro-finance company. Sen. Mitch McConne... more
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Is Pay-As-You-Go Car Insurance a Good Idea?
"Legislation is currently underway in California" that would make this possible and Progressive has a similar option to its customers in other states. Progressive's program requires access to when and how you drive. California officals will not make that part of the policy. Is this a crucial difference in ideas? Do you think that's too much informaton released?
Safe drivers might like Progressive's idea because they hope that they will be rewarded for their great driving with lower rates. I personally don't see that as the case. What do you think? "Legislation is currently underway in California" that would make this possible and Progressive has a similar option to its ... more -
If you thought the mortgage crunch was bad.... here comes the next one...
"The next credit crunch...
Our easy access to plastic is about to dry up - and with it our ability to fake living the good life.
By Geoff Colvin, senior editor at large
That's where the credit card reports come in. Last year, just as the subprime crisis happened, credit card debt took off. The home-equity ATM had been shut down, so people turned to the last source of easy money they had left, the most expensive debt on the menu, credit card borrowing.
Since credit card debt has been growing much faster than the economy - more than 8% in last year's third and fourth quarters and over 7% in May (the most recent month reported)- people are apparently using it as a substitute for income. Thus, for the past year or so we have still maintained the standard-of-living illusion.
But a big crunch is coming - and here's why. Credit card debt, like mortgage debt, gets bundled, securitized, and sold off by banks. Citigroup (C, Fortune 500), one of America's largest credit card lenders, just reported that it lost $176 million in the second quarter through securitizing such debt. That happens when the buyers of those securities observe rising delinquency rates and rising interest rates, and decide the debt is worth less than Citi thought. More generally, the amount of credit card debt that is securitized nationwide has plunged by more than half in the past five months because it's getting riskier. That means credit card issuers will be charging customers higher interest rates, and since the banks can't offload as much of the debt as before, they'll have less money to lend to cardholders. "
click link for the whole article...
brace yourselves, kids....
+af "The next credit crunch... ... more -
Macedonia: Greece largest investor - despite naming dispute
Greece has become the biggest investor in its northern Balkan neighbour, Macedonia, local media reported on Monday.
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Union Fears Commerzbank Could Cut Thousands of Jobs
Allianz has two suitors for Dresdner Bank: Commerzbank and the Chinese Development Bank. German politicians hope the banks stays in German hands, but union officials would prefer Chinese ownership over massive job cuts.
As Allianz mulls over who it should sell its ailing Dresdner Bank (more...) to, a representative of the union representing the bank's employees has said that he would prefer to see it sold to the Chinese Development Bank (CDB) (more...) than to face possibly thousands of job losses that a sale to Commerzbank would reportedly entail.
"We have always said that we don't have anything against having foreign buyers," a spokesman for the Ver.di services union told the business daily Handelsblatt Thursday.
The paper quoted sources close to the negotiations as saying that 9,000 jobs around the world might be in danger, which would equal almost 15 percent of the combined 63,000 employees of the two German banks. The union put the figure closer to 15,000.
The paper added that Allianz, the Munich-based insurance giant, plans to convene a meeting of its management board this weekend to determine what it should do with Dresdner Bank, Germany's third-largest bank, which it purchased in 2001 for €24 billion ($35.5 billion). In June, its value was estimated at €10.5 billion.
(continued at link) Allianz has two suitors for Dresdner Bank: Commerzbank and the Chinese Development Bank. German politicians hope the banks stays in Ge... more -
CDC Study: 12 Percent of American Indian Deaths Due to Alcohol
Almost 12 percent of the deaths among American Indians and Alaska Natives are alcohol-related - more than three times the percentage in the general population, a new federal report says.
The report released Thursday by the federal Centers for Disease Control and Prevention, found 11.7 percent of deaths among American Indians and Alaska Natives between 2001 and 2005 were alcohol-related, compared with 3.3 percent for the U.S. as a whole.
Dwayne Jarman, a CDC epidemiologist who works for the Indian Health Service and is one of the study's authors, said it is the first national survey that measures American Indian deaths due to alcohol. It should be a "call to action" for federal, state, local and tribal governments, he said.
The researchers obtained their statistics by analyzing death certificates over the four-year period.
The two leading causes of alcohol-related deaths among Indians were traffic accidents and alcoholic liver disease, each of which cause more than a quarter of the 1,514 alcohol-related deaths over the four-year period.
Also listed are homicide (6.6 percent of alcohol-related deaths), suicide (5.2 percent) and injuries in falls (2.2 percent). Almost 12 percent of the deaths among American Indians and Alaska Natives are alcohol-related - more than three times the percentage i... more -
Mexican Supreme Court upholds legal abortion
Mexico's Supreme Court voted 8-3 Thursday to uphold legal abortion in the capital, opening the possibility that similar measures could be adopted elsewhere in Mexico - and perhaps beyond.
But conservative President Felipe Calderon, whose administration appealed the Mexico City law to the Supreme Court, is unlikely to stop fighting efforts to expand the availability of abortions.
Even with the Supreme Court's approval, pro-abortion groups complain that many doctors refuse to do the procedure in Mexico City. Some are morally opposed, while others fear public scorn or the wrath of the country's powerful Roman Catholic Church.
The church blasted the court on Thursday, declaring itself in mourning and issuing a statement that church leaders would redouble their efforts to campaign on behalf of "the millions of children who are being sacrificed."
About a dozen riot police blocked off the street leading to the court as the decision was announced, guarding against disturbances. Mexico's Supreme Court voted 8-3 Thursday to uphold legal abortion in the capital, opening the possibility that similar measures ... more -
New U.S. Census Data: Same Reality
Newly released data by the United States Census Bureau continues to show how much President George W. Bush has ravaged the American economic landscape.
Since 2000, median income has decreased 1 percent. That decline is magnified by the higher costs for energy, food and other items during that period; what families could buy for a dollar in 2000 now costs $1.25. Newly released data by the United States Census Bureau continues to show how much President George W. Bush has ravaged the American ec... more -
Slavery in America TODAY
On an expanse of 18,000 acres of farmland, 59 miles northwest of Baton Rouge, long rows of men, mostly African-American, till the fields under the hot Louisiana sun. The men pick cotton, wheat, soybeans and corn. They work for pennies, literally. Armed guards, mostly white, ride up and down the rows on horseback, keeping watch. At the end of a long workweek, a bad disciplinary report from a guard - whether true or false - could mean a weekend toiling in the fields. The farm is called Angola, after the homeland of the slaves who first worked its soil.
This scene is not a glimpse of plantation days long gone by. It's the present-day reality of thousands of prisoners at the maximum security Louisiana State Penitentiary, otherwise known as Angola. The block of land on which the prison sits is a composite of several slave plantations, bought up in the decades following the Civil War. Acre-wise, it is the largest prison in the United States. Eighty percent of its prisoners are African-American. On an expanse of 18,000 acres of farmland, 59 miles northwest of Baton Rouge, long rows of men, mostly African-American, till the fiel... more -
Go 2,000 miles on 1 tank of fuel. From London to Venice!
This sleek machine is being hailed as the future of high-performance, eco-friendly motoring.
With an engine that runs on pure biodiesel, the Trident Iceni can do 2,000 miles on one tank of fuel - enough for a return trip to Venice from London.
Capable of topping 200mph, the car has been designed and manufactured by Phil Bevan, of Norwich-based firm Trident Performance Vehicles.
Just 500 go on sale from next year, priced at £75,000, after the firm spent £2.3million in development.
A spokesman said: ‘It’s like having a Lamborghini without the cost or the damage to the environment.
‘Electric cars are great for short distances but not really ideal for people who live in rural locations.
‘The Iceni is incredibly economical on fuel, which is virtually unheard of in a car of that speed.’
It uses a technology called 'torque multiplication' which helps keeps the revs low and thus uses less fuel and gives out less emissions.
The chassis is made from stainless steel which won’t corrode and the body isbuilt of composite which will never rust or degrade.
I'll take one please! This sleek machine is being hailed as the future of high-performance, eco-friendly motoring. ... more -
Government's spin bill rises to nearly £400m - Telegraph
Official figures showed that central government spent a total of £391 million on advertising, marketing, PR and other presentational work in 2007-08.
The total is up by £53 million on the previous year, when it was £338 million - a rise of almost 16 per cent.
When he took office last year, Mr Brown pledged a new sort of politics and sought to distance himself from his predecessor, who was frequently accused of being too heavily involved in spin and presentation.
But since last June, Mr Brown has faced repeated charges that he is at least as inclined to spin as Mr Blair.
Earlier this year, the annual wage bill for the Prime Minister's special advisers was estimated to have risen by more than £350,000 to £1.75 million - roughly the same as when Mr Blair was at No 10.
The latest spending figures are revealed in the annual report of the Central Office of Information, which co-ordinates government marketing, advertising and PR work.
The Information Office's total spending has more than trebled since Labour came to power in 1997. The latest figures show that the government spent £167 million on advertising, as well as £29 million on PR and sponsorship and £12 million on "strategic consultancy".
Some government communications schemes have sparked political controversy. Ofcom, the communications regulator, is investigating the use of £800,000 of public money to sponsor an ITV programme about community support officers.
Greg Clark MP, Shadow Minister for the Cabinet Office, said the figures showed that Mr Brown's talk of a "new politics" had been a sham.
He said: "At a time when families and businesses are having to cut back, Gordon Brown is increasing spending on promoting himself and his government. Spending on PR and advertising has rocketed under Gordon Brown's premiership by over four times the rate of inflation, and now Labour want to spend even more.
"It is a sign of just out of how out of touch Gordon Brown is with the situation facing ordinary people that he thinks it reasonable to let rip with spending on PR and advertising while telling everyone else they have to tighten their belts."
This is an outrageous waste of peoples money. Better spend the money doing positive things for the country and under privileged and let the media cover the spin on that. Official figures showed that central government spent a total of £391 million on advertising, marketing, PR and other presentational w... more -
AUG 27th Naked Lush Day in USA
In the now classic tactic of nudity as a form of protest, Lush employees in 24 US cities are being encouraged to wear only their apron in an attempt to raise awareness of wasteful product packaging. The video is from their prior event in the UK. In the now classic tactic of nudity as a form of protest, Lush employees in 24 US cities are being encouraged to wear only their apron... more
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McCain and Economics
I just really like the admission that McSame doesn't know much about Economics... lovely ad.
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NREL Solar Cell Sets World Efficiency Record at 40.8 Percent
I think you'll like this report on progress in the field of Solar Electric...
"August 13, 2008
Scientists at the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) have set a world record in solar cell efficiency with a photovoltaic device that converts 40.8 percent of the light that hits it into electricity. This is the highest confirmed efficiency of any photovoltaic device to date.
The inverted metamorphic triple-junction solar cell was designed, fabricated and independently measured at NREL. The 40.8 percent efficiency was measured under concentrated light of 326 suns. One sun is about the amount of light that typically hits Earth on a sunny day. The new cell is a natural candidate for the space satellite market and for terrestrial concentrated photovoltaic arrays, which use lenses or mirrors to focus sunlight onto the solar cells.
The new solar cell differs significantly from the previous record holder – also based on a NREL design. Instead of using a germanium wafer as the bottom junction of the device, the new design uses compositions of gallium indium phosphide and gallium indium arsenide to split the solar spectrum into three equal parts that are absorbed by each of the cell's three junctions for higher potential efficiencies. This is accomplished by growing the solar cell on a gallium arsenide wafer, flipping it over, then removing the wafer. The resulting device is extremely thin and light and represents a new class of solar cells with advantages in performance, design, operation and cost.
NREL's Mark Wanlass invented the original inverted cell, which recently won a R&D 100 award. His design was modified by a team led by John Geisz that further optimized the junction energies by making the middle junction metamorphic as well as the bottom junction. Metamorphic junctions are lattice mismatched – their atoms don't line up. The material properties of the mismatched semiconductors allows for greater potential conversion of sunlight.
NREL is the U.S. Department of Energy's primary national laboratory for renewable energy and energy efficiency research and development. NREL is operated for DOE by Midwest Research Institute and Battelle.
For further information contact NREL Public Relations at (303) 275-4090." I think you'll like this report on progress in the field of Solar Electric... "August 13, 2008 ... more -
"It's a Bird, It's a Plane, It's a Wetback"
Superman should be deported. He's a f'n wetback. Where the h*ll is his green card? Let's deport him to Kripton.
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The Doha dilemma
Wouldn't a dual solution be appropriate? I think that co-operation seems necessary.
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Will America Stagnate?
While I fear a repeat of the Japanese Economic crisis, I have a (perhaps foolhardy) belief that the Fed will begin to review the literature surrounding the Japanese real-estate crisis and make decisions accordingly. I hope that the lessons of the past may help us in the future. I would rather not think of the consequences otherwise. While I fear a repeat of the Japanese Economic crisis, I have a (perhaps foolhardy) belief that the Fed will begin to review the liter... more
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Five Ways to Wreck a Recovery
Five Ways to Wreck a Recovery
By Amity Shlaes
Monday, August 18, 2008; Page A11
Perverse monetary policy was the greatest cause of the Great Depression. But five non-monetary missteps were important in making the Depression great, and the same missteps damaged the global economy as well. While many are thinking about the Depression, few seem concerned about replicating these Foolish Five today:
· Giving in to protectionism. In Herbert Hoover's time, Sen. Reed Smoot and Rep. W.C. Hawley proposed a tariff that was to raise effective duties by as much as half. More than a thousand economists signed an open letter warning that the duties would "raise the cost of living and injure the great majority of our citizens."
But Hoover's Republican Party didn't much care. In its 1928 platform, the GOP had pledged to "reaffirm our belief in the protective tariff." Ambivalent, Hoover signed the bill. An irate Canada and many other nations retaliated. At a time when the United States was begging for foreign markets, it lost them. The selfish signal discouraged an already unstable Europe.
Today, international trade claims a sizable share of our economy. Bilateral free-trade agreements with Colombia or Panama are good insurance -- cheap steps that might prevent an expensive loss, that of the Western Hemisphere to Venezuela's Hugo Chávez.
Yet again, one party -- the Democrats, this time -- is cavalier. House Speaker Nancy Pelosi is blocking passage of these bilateral agreements. And another ambivalent politician -- Sen. Barack Obama -- has sent mixed messages to Canada about just how much he wants to roll back the North American Free Trade Agreement.
and more at the link [two pages]...
enjoy... [yeah, i know.. you don't believe it.. :)]
+af Five Ways to Wreck a Recovery By Amity Shlaes Monday, August 18, 2008; Page A11 ... more
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