Archive for March, 2010

Anemia In America

Wednesday, March 24th, 2010

New home sales continue to fall!

Durable orders are rising!

What does it mean?

The housing market still has not hit bottom, and government support efforts for housing prices have been a total failure. Without a housing recovery, it’s difficult to see how the economy really grows. The announcement by Bank Of America that it may write down mortgage principal could help, but allowing bankruptcy court judges to do the same would help a good deal more.

Durable goods orders are essentially replacing depleted inventory. There is no evidence, outside of export markets, that there is any sustainable demand, from either consumers or businesses.

Gorilla says: “Going nowhere less hastily is still going nowhere!”

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Less Porto In A Storm

Wednesday, March 24th, 2010

Portugal: downgraded!

Does it matter?

No, because the ratings agencies themselves are not worth a moment’s attention. They are riddled with conflicts of interest and helped contribute to both the housing and financial meltdowns that are plaguing the globe.

Yes, because Euroland is again exposed as an unworkable monetary union. Portugal can’t devalue its way out, while the Germans will neither finance nor consume their way out.

Eventually, a deal will be struck, because Spain and Italy, both far larger economies, are also on the brink and will need massive amounts of financing if the debt markets don’t cooperate.

Gorilla thinks: “The end of the escudo is crudo!”

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It’s Only About Money

Wednesday, March 24th, 2010

Google: sort of censoring, sort of not!

Google’s not a paragon of free speech, it’s not a bastion of democracy, it’s simply a business that can no longer make a buck in China unless it dances to Beijing’s tune…

Most of the other multinationals in China understand this formula. They don’t care a whit for human rights in China or anywhere else they operate. What they do care about is the bottom line, and so long as that’s humming along, why be good?

Gorilla says: “When greed is what counts, nothing much else does!”

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A New Failure Initiative

Tuesday, March 23rd, 2010

Here we go again, another “new initiative” in the US-Mexico war on drugs!

Better screening, lesser walls: that’ll do the trick!

And $330 million from the US, or a tiny fraction of the money we’re spending to arm the drug cartels against the Mexican government…

One day, there may be politicians in both countries who will say categorically that the war on drugs has been a colossal, expensive failure, that Prohibition will never work, that we will legalize soft drugs throughout North America, and we will take all the money saved on fence building, law enforcement, and guns dealers to finance some real economic development in the poorest regions of the Hemisphere.

Gorilla says: “Not in my lifetime, of course, but it would be nice to try something that might actually work!”

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Ship In A Barrel

Tuesday, March 23rd, 2010

Not content with doing not very much to rescue the Greeks, the French and Germans are now demanding the Greeks buy more ships from them!

It’s yet another example of why Euroland doesn’t really work; it’s not really an economic union and it’s certainly not a political union.

The French don’t like competition and the Germans don’t like consumption, and together they can’t agree on anything, except making the Greeks pay them for the privilege of benign neglect and protection from the non-existent Turkish threat.

So the Euro falls, delighting the German export machine, while Greece can’t borrow at low enough rates to make their draconian fiscal austerity package work.

Sarkozy’s currently licking his wounds after a resounding regional election defeat, so there won’t be much coming from Paris.

Gorilla says: “Roll out the barrel and dangle the Greeks over it!”

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The Winner Stays On The Sidelines

Tuesday, March 23rd, 2010

Having been prevented from running, Aung San Suu Kyi, who won Burma’s only free election in 1989, says it’s better for her party not to register this time around.

And so the latest farce begins, with democracy a far-flung dream and no country willing to do very much about it.

That’s Burma policy for 20 years, dialogue or not.

Gorilla thinks: “She’s playing the long game, but she may not last much longer!”

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Social Security Silliness

Tuesday, March 23rd, 2010

Once again, the deficit peacocks are on the march!

And this time, it’s Social Security, facing the prospect of its surplus running out by (wait for it): 2043!

Oh yes, and Social Security will still be able to pay out 75% of benefits after 2043 if nothing is done…

Global warming will be here a lot sooner, but nobody can be bothered with that.

The solutions to the Social Security “problem” are straightforward:

1) Raise the retirement age to 70.

2) Raise the payroll tax if necessary, sometime around 2050.

Medicare and Medicaid face far worse fiscal conditions in the next 15 years, and these will likely be solved by a combination of health care reform and, by 2025 or so, a single payer, Medicare-based system.

What about 10% unemployment now (the real rate’s more like 16%)?

Nope, sorry, only worthless tax credits are available to employers who would hire the workers anyway. There’s no sensible jobs program at all.

Gorilla says: “We need more stimulus today, not deficit fetishes disguised as serious policy!”

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Nope, Sorry, It’s All Done

Monday, March 22nd, 2010

Not that this will stop grandstanding Attorneys General and Governors from launching frivolous lawsuits to “stop” healthcare reform, while they’re laying off teachers and firemen!

There’s this thing called the Commerce Clause in the Constitution, Congress regulates interstate commerce, health care is part of interstate commerce, and that’s that. The courts won’t spend 10 seconds on this one, and the Attorneys General should be disbarred for wasting public time and money.

Tough cookies, Attorneys General, but you didn’t win the election, and so the 45,000 Americans you’re willing to let die every year now have a future!

Gorilla says: “Rule of law? More like Bueller of law!”

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Not This Year

Monday, March 22nd, 2010

Lost in the health care reform excitement was a big rally in favor of immigration reform.

And it’s long past time America did something about immigration, such as:

1) Increasing quotas. We should be taking in substantially more high-skilled immigrants.

2) Establishing a path to legal immigration that doesn’t take decades. 5 years should be the outside waiting limit if you’re eligible and you apply for permanent residence, whether as an individual, a spouse, or an immediate family member.

3) Substantially increasing the foreign aid budget, particularly in Mexico and Central America, and eliminating agricultural subsidies. Too much money is being wasted on the war on drugs, when what’s necessary is a war on poverty. We’ve got to help these countries develop economically, to make staying home more attractive.

Alas, it’s unlikely that reform legislation will be passed this year. There’s only so much courage to go around in DC in an election year, and it won’t be spent on helping immigrants at a time of 10% unemployment.

Gorilla says: “In 2011, the time will be right!”

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Know Nothing Party Fall Platform

Monday, March 22nd, 2010

Apparently, so far it goes like this:

“We decided it was better politically for 45,000 Americans to die in this and every subsequent year due to a lack of health insurance”.

“Sure, the Tea Partiers are racist homophobic extremist neanderthals, but we were glad to have them on our side”.

“Student loans must be provided by a federally subsidized banker, anything else is socialism”.

“We think the American people should have less protection from the predatory practices of the financial services industry“.

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