Continuation of Public Hearing of May 17, 2011 – Proposed Ward Boundary Map Based on the 2010 Federal Census Results and Approval of Resolution
At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input at the public hearing and consider adoption of the requisite resolution.
At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
Four people spoke againt this proposal. The first person person to speak was Barbara Byrd, she spoke about what was going on back in the 1970s when she grew up. She spoke about there being no purpose at that time that kids were dropping out of school... had nothing to do and everything to lose, but who cares and who loses. She spoke about the Jim Crow law, which occurred during this era and it is still being practiced here today. Over 40 years, you would think that this would overcome and respect all races -- a lesson to be learned in itself. Why should we be reminded of racism, name calling, riots, seperate this, separate that, all of this for a huge political power struggle that you people hold offices to stand for us as people and citizens of Hickory. Questions are being asked, what can we do to end this era? What is expected from our city officials? More so, what is expected of us to help move this city of Hickory to the next level for all people? We need representation from all, including all races, to help make this happen. No one can begin to think or feel or never act upon our community, in which we live, which is Ward 4 Ridgeview. We all need to be on the same page, so let's try to realign and move forward. Leave all of this Jim Crow Law behind and thrive for the future. What is so wrong with wanting to move the Ward lines so that we can get better representation so that we can get proper representation so our voice can be heard. We have plenty of issues that need to be addressed as well, such as poverty out of our neighborhood... raise the standards for higher education and exemplify our place in society, so that we can improve all of our kids for the betterment of our children, our heritage, and our dignity. Let's lay down this Jim Crow law tonight, because we can only dream of an All-American City. Which one of these communities? Ours bleed so yours is going to bleed also. Don't take the soul and heart out of ward 4. Let it thrive. One day we can all stand proud and say to you, this is an All-American City in which we live. And tonight, please keep in mind that our children are our future. Our community belongs to each and every one of us. All we ask is that we have a voice, the same as you guys do, and that we feel comfortable in our homes at night. Say yes to some of these wrad lines that really need to be adjusted for all people.
The following comment will be summarizations of the statements of James Franklin Davis, Deborah McNeur, and Larry Pope:
J. Franklin (Jimmy) Davis addressed the Council. The decision that you've made indicates that The City is going to prioritize incumbency protection over minority voting rights and that is a pretty undemocratic position to take. The current method of elections is unfair. If future conditions of elections continue to bear out the trend that candidates that are the choice of minority voters cannot win when pitted against white candidates, in an at large election, then you will have to reevaluate your legal options. Jimmy then used a couple of segments that went over questions that have been asked on the Hickory Hound in the January Rant entitled the Pursuit of Excellence. He then speaks of a Bible quote, "Take heed who is chief amongst you and let them be your servant." Are you (the council) the he who is being referred to. The ultimate measure of a man or woman is not where he or she stands in moments of comfort or convenience, but where he or she stands at times of challenge and controversy. The true neighbor will risk his position, his status, and even his life for the welfare of others. Studies show Hickory at the bottom of the barrel in just about every national study that e have seen, yet Council members are patting themselves on the back and are proud of the work that they are doing -- Really? Jimmy then went into the State of Hickory 2011. "We don’t need leaders who are in the political arena to stroke their ego. We need leaders in this community who are thinkers and who are intellectually curious. We need leaders who know how jobs are created, because if they don’t, they could cause the loss of jobs and the empirical evidence of the last decade shows that this was a contributing factor in what happened to our job market. Our leaders lost sight of what businesses need to make employment viable."
Jimmy states that the essence of all of our work, regardless of what particular issue or activity in which we are involved, is to foster a spirit of authentic community. All of our work therefore should promote social, economic, and personal relationships that are firm and realize that equality, dignity, the worth and potential of every person and all peoples. We take care to stand with the poor, the oppressed, any group or person in such a way that we stand for the best interest of the whole.
The next person to speak was Deb McNeur. With all due respect, the Mayor stated that it was unfair to unseat an incumbent by eliminating a seat. That is not really the truth. It would not be in favor of eliminatinating a seat, byt it would be in favor of electing someone of low socio-economic status to the Council to give fair representation to all of the areas. Part of Ward 4 is West Hickory, Westmont, and Green Park also. It's not really a racial issue. (Deb) doesn't like it being divided along racial issues, but it is a south side of the tracks issue. The big issue is the socio-economics. No one from Ward 4 West Hickory could get elected either. She considers the wards having been gerrymandered to keep the status quo in place, which is not conducive to someone being fairly represented that does not have the socio-economics most of you sitting there (City Council) do.
Larry Pope was the next person to speak. Larry commended City staff who had helped him when he had low blood sugar while visiting city hall that morning. He is proud of how they represent the city. They need to be commended. He considers himself a citizen of a very good city. Larry has asked several times about going back to what we had in 1970, in which Council elections were purely ward based. With the blended at-large system, minorities and low income folks in our city don't stand a chance of being elected. (Larry) is a good example. He won his ward 4 times, but when it went to at-large he was defeated, because folks all over the city voted against (Larry), because they couldn't control Larry or he wouldn't vote the way that they wanted him to vote. (Larry) says to (Council) that the only way that we can make elections in the city representative is to let the folks of their ward be chosen by the citizens of their ward. (Larry) is asking tonight for (Council) to give us an answer so that he knows whether they intend to go to Ward election, He wants them to vote on it and how they vote on it. He wants to know whether they will vote to go back to NCGS 160a-104 and go back to ward elections so that citizens can choose who they want to represent them and not have citizens who do not live in that ward choosing who will represent them.
The Mayor stated that he believed that the 3rd proposal should be adopted. It is absolutely no better or worse than alternative 4, except that it unseats a sitting council member. It does not change voting patterns. It does not give more power or less power.
Alder Patton stated that she seconded the motion. Much of what has been discussed ignores that there has been a minority elected to the ward for many years. She truly believes that the city has moved past color. It is not based on color. If there is a viable good candidate that the city wants to elect, then that can incude not just a black, but Asian, Hmong, or Latino. She believes that Hickory would elect a minority.
(Deb McNeur) later spoke up during an address of council and stated that she wanted to remind the Council that the person elected by the at-large vote (Z. Anne Hoyle) was not the choice of the people of that ward. She stated that is the reason why Alderman Guess is on the Council is because the people of ward 4 were not going to vote for M. Hoyle.
Alder Fox stated that she wants to say that she has thought about this and it was a numbers process. She considered it a fair process. All of us regardless of the wards that we represent spend a lot of time in other areas that are not basically our wards. She can speak for council members who have spent hours in areas that they don't represent. She is satisfied with what has taken place here. we were not charged with how to look at how we vote.
The Mayor stated that we had another open meeting and all we are talking about is two percent, but it eliminates a city council member. he feels comfortable with what they have done. It has nothing to do with depriving anyone's voting rights in any way. He can't think of anything realistically that would have changed things.
There was contention as the Council members voted 7-0 to adopt the resolution. Larry Pope demanded that as part of Title 2 of the Americans with Disabilities Act that they state their name and how they voted. The Mayor stated that he was not going to do that unless someone tells him that the law requires that. Attorney Crone stated that it was obvious that it was a 7-0 vote, but did not answer about the legality of the issue. Mr. Pope stated that if forced to that he would challenge the issue in court. He does not know which council members are here or not here. He cannot see a single individual. (Larry)asks for it to be done the way that the law requires it to be done. Hank Guess made a motion that the Council vote in that format. That motion was seconded by several council members. The Mayor stated that they have always voted in an appropriate manner, but in his opinion they should not start saying that they are going to do something that the law requires in one instance, but not another. If the law requires it... Alderman Guess stated that it's not that... Mayor Wright stated that before he votes he wants to know whether the law requires it. Atty. Crone stated that it was clear that every member here voted unanimously, but would not address the legal issue. Crone stated that he doesn't see what the big deal is one way or the other. Lail, Seaver, Guess, Fox, and Patton voted Aye to the voice vote. Mayor Wright and Meisner voted No to the Voice vote. In the voice vote each member stated their name and voted yes to adopt the Ward line third proposal.
The Hound says Whew!!! This was contentious and really doesn't need to be. I don't believe that this is an issue of Jim Crow, separate but equal, law. I can understand the angst of the people of the Ridgeview community over issues with the city in the past. I agree with Deb McNeur that this is an issue of socio-economics and it is an issue of the two sides of the tracks. I don't see anything vitriolic about that being stated.
Look at the precincts that had the highest turnout. They were the Viewmont wards. In my opinion that is because there issues are taken care of. They are choosing who will represent every ward. As has been stated to me, the reason why you don't see neighborhood associations in North Hickory is because their issues are already addressed. They don't need a place to vent their frustrations about their neighborhoods issues.
I also agree that the wards are gerrymandered. There is no rhyme or reason to the way they are drawn. They could come up with these same numbers by drawing a sliced pie map- of Hickory that does not have wards drawn here there and everywhere. I do believe that there should be more direct representation of the specific parts of Hickory. An outside of the box idea and compromise would be to have each quadrant of the city have a representative, with some compromises for population distribution, elected specifically by that quadrant, and then have two at large council positions voted on by people throughout the city and the Mayor. Then have the mayor position with some superceding authority.
Right now, what gives Mayor Wright any more status than the other Council members? They all are voted on by the same electorate in the same manner. Truly, the other Council members have just as much power as the Mayor. If this is going to be the case, then why even have a formal election for a Mayor. Why not have a more parliamentary system with seven wards and let the council members choose who will be the Chairman of the Council.
One thing is for sure. This is an issue. It needs to be debated. We need to know why the Post-1970 electoral model works best. Why are we holding unnecessary primary elections? Why is there such low participation? Do we not want more people to participate? And I am not naive, do people really even care?
Wednesday, June 8, 2011
Tuesday, June 7, 2011
Mayor Rudy Wright and the $20 million Idea
From the Monday Morning meeting with the Mayor on Hal Row's First Talk program, June 6, 2011: I was listening to Hal and the Mayor talk about a Game changing Investment and if people have an idea that he wants them to bring it to him, no matter how big or small, this is the third month in a row that the Mayor has talked about this idea. $20 million has always been this number that he constantly brings up. He defines it as a parameter, but in the end -- in my opinion -- this is all about politics and frankly, although he's entitled to say whatever he wants, I am personally getting tired of hearing it. He states that he and the Council would take it (the Right Idea) to the people. What parameter defines "The People." First, if I have a $20 million idea, why am I going to bring it to the Mayor. What is his track record of making things happen? And why should I not be worried about it being steered away from myself and towards more connected interests?
Hal brings up the idea about municipal golf courses and the Mayor makes a simple statement about them having mixed reviews. My paranoid side felt like they were trying to poke and prod me to call in and state that I would be against it because it would compete against the local Private Clubs. I could give two piles of horse hockey about that. I know that this would not be a good time to call in about such a subject when one of our areas most important marketing events is taking place. However, my argument would be that there is an over saturation of golf facilities in our community already, especially with the current state of the economy. Go ask the existing golf facilities how their present revenues are going. Most of these "Golfers" don't have a clue about the intensive investment that it takes to run a proper Golf facility.
The next thesis of this program was that we need to bring more retirees into this community. I already have pointed out why I believe this to be a mistake -- ad nauseum. I am willing to debate the Mayor any time and any place on this issue. These two men kept talking about how it would create construction jobs, because these people buy houses and Hal was talking about how these people would buy houses on these municipal golf courses. Let me get this right. We don't have money to spend a few hundred thousand dollars to create a community swimming pool, but we have millions of dollars to spend on building golf courses with the hope that golf lovers will flock to the Hickory to play golf to infinity. We don't take care of the Citizens of Hickory now, but they want to bring in new people that they expect to cater to. Yeah right!!!
Ladies and gentleman, someone has to come out of the woodwork and I have been thinking about two years from now, because we cannot afford to remain on this path to nowhere that we are on. Hickory is a political microcosm of what we see from other dysfunctional governments that we see throughout the World. These governments have detached themselves from the people and do not look at themselves as public servants, instead we are looked upon as subjects. They look to themselves as Authorities and Authorities authorize.
I honestly think the Mayor has no intentions of doing anything. We are not moving forward in this community and the Mayor is basically telling you that he has no ideas. If he had any ideas about how to generate anything economic, then he would not be asking you for yours!!! And to a degree he has implemented his policies, which are to cut, cut, cut, cut.... the budget and by consequence reduce the effectiveness of the local government. Where is $20 million going to all of the sudden appear from?
With this act of desperation, the $20 million idea, he displays over and over again that he thinks he is the final arbiter of whether an idea is good or not and I have never heard him state that any idea sounds great. It is always that he needs to study it further or it has had mixed reviews or it hasn't worked somewhere else or people are looking for "The Right Idea."
The Mayor is becoming a caricature of how Old South Mayors were characterized on television shows like Andy Griffith, etc. back in the days of black and white TV -- jumping in front of the crowd on popular issues, while being scared to death to take any chances, because some political negativity might be pinned on him if he were wrong. I hate to say that, but when he is constantly making these broadbrushed generalities about community investment and other over simplified statements that he has made about the local economic situation and the scenarios to be played out over the next generation, then one can see that he has no intention of doing anything outside of the box to move this community forward. It is a Medicine Man approach to make a situation look grander than it is.
I want someone to come along, who is willing to face down this mess, this lack of focus, and this lack of leadership that is present day Hickory. I am not here to attack people. I do want to help, but I am given nothing to work with. Our leaders keep pushing this notion of this being a cheap place to live. That isn't a great way to attract the movers and shakers of this world. Smart people understand the concept of Cheap Begets Cheap. We need to stress Excellence and Value related to that excellence!!! We don't want to be a cheap place to live with cheap wages and amenities. We want to be a community with an excellent Quality of Life where people are happy and don't have to work two and three jobs to make ends meet; who can say that they don't have to sacrifice their way through life. There is a big difference between what our leaders consider sacrificing and what I am telling you about sacrificing.
We have got to move forward and stop worrying about political gamesmanship and instead think about the people. The people who have Hickory in their blood. Politics will not resolve Hickory's issues. It is going to take someone that will lay the facts out to the folks and be willing to lose in order to win. If you are trying to become Mayor for the next generation, then you will be part of the problem. If you want to get some things done around here and are willing to take some heat from the entrenched interests, then we can get some things done around here. Talk is cheap, let's step up to the plate and make some things happen.
Hal brings up the idea about municipal golf courses and the Mayor makes a simple statement about them having mixed reviews. My paranoid side felt like they were trying to poke and prod me to call in and state that I would be against it because it would compete against the local Private Clubs. I could give two piles of horse hockey about that. I know that this would not be a good time to call in about such a subject when one of our areas most important marketing events is taking place. However, my argument would be that there is an over saturation of golf facilities in our community already, especially with the current state of the economy. Go ask the existing golf facilities how their present revenues are going. Most of these "Golfers" don't have a clue about the intensive investment that it takes to run a proper Golf facility.
The next thesis of this program was that we need to bring more retirees into this community. I already have pointed out why I believe this to be a mistake -- ad nauseum. I am willing to debate the Mayor any time and any place on this issue. These two men kept talking about how it would create construction jobs, because these people buy houses and Hal was talking about how these people would buy houses on these municipal golf courses. Let me get this right. We don't have money to spend a few hundred thousand dollars to create a community swimming pool, but we have millions of dollars to spend on building golf courses with the hope that golf lovers will flock to the Hickory to play golf to infinity. We don't take care of the Citizens of Hickory now, but they want to bring in new people that they expect to cater to. Yeah right!!!
Ladies and gentleman, someone has to come out of the woodwork and I have been thinking about two years from now, because we cannot afford to remain on this path to nowhere that we are on. Hickory is a political microcosm of what we see from other dysfunctional governments that we see throughout the World. These governments have detached themselves from the people and do not look at themselves as public servants, instead we are looked upon as subjects. They look to themselves as Authorities and Authorities authorize.
I honestly think the Mayor has no intentions of doing anything. We are not moving forward in this community and the Mayor is basically telling you that he has no ideas. If he had any ideas about how to generate anything economic, then he would not be asking you for yours!!! And to a degree he has implemented his policies, which are to cut, cut, cut, cut.... the budget and by consequence reduce the effectiveness of the local government. Where is $20 million going to all of the sudden appear from?
With this act of desperation, the $20 million idea, he displays over and over again that he thinks he is the final arbiter of whether an idea is good or not and I have never heard him state that any idea sounds great. It is always that he needs to study it further or it has had mixed reviews or it hasn't worked somewhere else or people are looking for "The Right Idea."
The Mayor is becoming a caricature of how Old South Mayors were characterized on television shows like Andy Griffith, etc. back in the days of black and white TV -- jumping in front of the crowd on popular issues, while being scared to death to take any chances, because some political negativity might be pinned on him if he were wrong. I hate to say that, but when he is constantly making these broadbrushed generalities about community investment and other over simplified statements that he has made about the local economic situation and the scenarios to be played out over the next generation, then one can see that he has no intention of doing anything outside of the box to move this community forward. It is a Medicine Man approach to make a situation look grander than it is.
I want someone to come along, who is willing to face down this mess, this lack of focus, and this lack of leadership that is present day Hickory. I am not here to attack people. I do want to help, but I am given nothing to work with. Our leaders keep pushing this notion of this being a cheap place to live. That isn't a great way to attract the movers and shakers of this world. Smart people understand the concept of Cheap Begets Cheap. We need to stress Excellence and Value related to that excellence!!! We don't want to be a cheap place to live with cheap wages and amenities. We want to be a community with an excellent Quality of Life where people are happy and don't have to work two and three jobs to make ends meet; who can say that they don't have to sacrifice their way through life. There is a big difference between what our leaders consider sacrificing and what I am telling you about sacrificing.
We have got to move forward and stop worrying about political gamesmanship and instead think about the people. The people who have Hickory in their blood. Politics will not resolve Hickory's issues. It is going to take someone that will lay the facts out to the folks and be willing to lose in order to win. If you are trying to become Mayor for the next generation, then you will be part of the problem. If you want to get some things done around here and are willing to take some heat from the entrenched interests, then we can get some things done around here. Talk is cheap, let's step up to the plate and make some things happen.
Sunday, June 5, 2011
Economic Stories of Relevance in Today's World -- June 5, 2011
US house price fall 'beats Great Depression slide - The Independent on Sunday - By Stephen Foley - June 1, 2011 - The ailing US housing market passed a grim milestone in the first quarter of this year, posting a further deterioration that means the fall in house prices is now greater than that suffered during the Great Depression... The brief recovery in prices in 2009, spurred by government aid to first-time buyers, has now been entirely snuffed out, and the average American home now costs 33 per cent less than it did at the peak of the housing bubble in 2007. The peak-to-trough fall in house prices in the 1930s Depression was 31 per cent – and prices took 19 years to recover after that downturn... The latest Case-Shiller house price index was just one of a slew of disappointing economic data from the US yesterday, which suggested ebbing confidence in the recovery of the world's largest economy. The Chicago PMI manufacturing index showed a sharp slowdown in the pace of expansion in May, missing Wall Street forecasts and sending the index to its lowest since November 2009.
Why housing is in a depression - Commentary: New data says the double dip is even worse than the 1930s - Marketwatch - Brett Arends - June 1, 2011 - And the Case-Shiller data masks huge variations in housing markets. Prices have collapsed many suburbs, exurbs, rural areas, and in well-known disaster sites like Miami, Las Vegas and Phoenix. Meanwhile the declines have been much milder in places like Manhattan or Boston. Some high-end real estate is actually selling well. The buyers have money... Is there a silver lining to this? Well, maybe... If you can get the financing, housing is now cheap. Really cheap. Capital Economics reckons housing is now 24% undervalued, and is the cheapest it’s been in thirty-five years... With mortgages rates on the floor, and inflation surely brewing down the road, housing in many parts of the country looks like a good deal. But you’ll have to be patient to see the biggest rewards. Capital Economics says, back in the Depression, it took 19 years for house prices to recover to their previous peaks.
Dreaded Double-Dip Is Here - Greg Hunter - USA Watchdog - June 1, 2011 - Another one of my favorite people to quote is economist John Williams of Shadowstats.com. He has been warning about a sinking economy for months and has been saying any good news is nothing more than “bottom bouncing.” In his most recent report, Williams said, “Most major economic reports in April disappointed consensus expectations and either were flat or negative for the month—including real retail sales, industrial production, housing starts and durable goods orders. Where first-quarter GDP growth slowed versus the fourth-quarter, the stage is set for the GDP to turn negative, again, sometime in the next two quarters, reflecting what would become an official double-dip recession.” Housing has been an unqualified disaster with housing starts and new home sales off 75% from the 2005 peak. Existing home sales are off nearly 30%, and of the homes that are sold, nearly 40% are foreclosures. Four in 10 homes sold as distressed properties do not signal a healthy economy—just the opposite... So, where are we headed? Well, all this bad news is going to push the Fed to print more money to keep the banks from going under. QE2 is supposed to end June 30, but the consensus of experts I quoted said it won’t be long before there is QE3. It will be either overt or covert, but it will be instituted. A double-dip in housing could start a daisy chain of very bad news for the big banks exposed to derivatives and residential real estate. (I wrote about this a few months back. Click here for the complete original post.) Williams agrees, and in his latest report he said, “The Federal Reserve is a private corporation owned by commercial banks or banking interests. The Fed’s primary job is not to generate sustainable economic growth, nor to contain inflation, but rather to keep the banking system sound and healthy. Accordingly QE1 and QE2 likely were targeted primarily at addressing systemic solvency issues, with the Fed using the weak economy as cover. As the systemic solvency crisis continues and/or intensifies, an overt or covert QE3 likely will be in place by third-quarter 2011, under the cover of a deteriorating economy. The broad inflation and economic outlooks discussed in Hyperinflation Special Report (2011) continue unabated.”... Williams thinks there is going to be a “great collapse” between now and 2014. Yes, the dollar and the entire financial system could go down in a giant hyper-inflationary ball of fire. The buying power of the buck will be completely wiped out. Please keep in mind, more than $12 trillion in liquid assets are held outside of the U.S. A stampede out of the dollar could trigger a hyperinflationary event at any time. At the very least, count on increasing inflation in everything but housing.
Half of Last Month's New Jobs Came from a Single Employer — McDonald's - The Weekly Standard - Mark Hemingway - Jun 3, 2011 - According to the unemployment data released this morning, the economy added only 54,000 jobs, pushing the unemployment rate up to 9.1 percent. However, this report from MarketWatch suggests the data is much worse than that.... McDonald’s ran a big hiring day on April 19 — after the Labor Department’s April survey for the payrolls report was conducted — in which 62,000 jobs were added. That’s not a net number, of course, and seasonal adjustment will reduce the Hamburglar impact on payrolls. (In simpler terms — restaurants always staff up for the summer; the Labor Department makes allowance for this effect.) Morgan Stanley estimates McDonald’s hiring will boost the overall number by 25,000 to 30,000. The Labor Department won’t detail an exact McDonald’s figure — they won’t identify any company they survey — but there will be data in the report to give a rough estimate.... If Morgan Stanley is correct, about half of last month's job growth came from the venerable fast-food chain. That is hardly the sign of a healthy economy.
Offshoring has Destroyed the US Economy - Nobel Economist Michael Spence Says Globalism Is Costly For Americans - GlobalResearch.ca - by Dr. Paul Craig Roberts - May 31, 2011 - These are discouraging times, but once in a blue moon a bit of hope appears. I am pleased to report on the bit of hope delivered in March of 2011 by Michael Spence, a Nobel prize-winning economist, assisted by Sandile Hlatshwayo, a researcher at New York University. The two economists have taken a careful empirical look at jobs offshoring and concluded that it has ruined the income and employment prospects for most Americans... All of this was over the heads of “free trade” ideologues, who threw accusations such as “protectionist” at Sir James, Roger Milliken, Herman Daly, Ralph Gomory, Charles McMillion, and myself. These “free trade” ideologues are economically incompetent. They do not know that the justification for free trade is based on the principle of comparative advantage, which means that a country specializes in those economic activities in which it performs best and trades for those goods that other countries do best. Instead, the ideologues think that free trade means the freedom of capital to seek absolute advantage abroad in lowest factor cost. In other words, the free trade incompetents have never read David Ricardo, who formalized the case for free trade... Other economists, especially those high profile ones in high profile academic institutions, were bought and paid for. http://www.informationclearinghouse.info/article28189.htm In exchange for grants from offshoring corporations these hirelings invented “the New Economy,” in which everyone would prosper as a result of getting rid of “dirty fingernail jobs.” The New Economy wouldn’t make anything, but it would lead the world in innovation and in financing what others did make. The “new economists” were not sufficiently bright to realize that if a country didn’t make anything, it couldn’t innovate... To find a Nobel prize-winner documenting the high cost of globalism to developed economies is extraordinary. For the Council on Foreign Relations to publish it suggests that the Establishment, or some part of it, suspects that its hubris has run away with its fortunes, and that different thinking is needed to restore the US economy.
The Federal Reserve Cartel: The Eight Families - Global Research - Dean Henderson - June 1, 2011 - The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths. But their monopoly over the global economy does not end at the edge of the oil patch... According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.[1]... So who then are the stockholders in these money center banks?... This information is guarded much more closely. My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather ironic, since many of the bank’s stockholders reside in Europe.... One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation - founded in 1853 and now owned by Bank of America. A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild. Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. [2]...
Pinks Slips Coming For 450,000 State and Local Government Employees in 2012 - SHTFplan.com - Mac Salvo - May 26, 2011 - In June of 2010 we noted that well known financial sector analyst and the woman who blew the doors open on the 2008 mortgage crisis, Meredith Whitney, was forecasting that two million government employees would see their jobs cut over coming years because of fiscal problems.... It’s happening.... Over 300,000 jobs have been cut in fiscal year 2011, and that number is about to increase 50% going into 2012:
War Zones: As The Economy Dies, Murders, Shootings, Robberies And Looting Erupt All Over America - Before It's news - Wednesday, June 01, 2011 - As the U.S. economy falls apart and millions of Americans descend into despair we are seeing some really shocking things start to happen all over America. The mainstream media keeps telling us that crime is under control, but they are also the ones that keep telling us that we are in the midst of an "economic recovery". Unfortunately, the truth is that the economy is slowly dying. Today, an all-time record 44 million Americans are on food stamps. That number is 18 million higher than it was just four years ago. When people can't get jobs and when people feel deprived they get desperate. The incidents that you are about to see and read about below are very disturbing. Many American communities are rapidly turning into war zones. Sadly, it is mostly young people that are involved in the crimes and the violence that are now sweeping America.... Yesterday, I wrote an article entitled "18 Signs That Life In U.S. Public Schools Is Now Essentially Equivalent To Life In U.S. Prisons", and there were some readers that objected to the article because they said that the youth of today are so wild that if you don't use extreme measures they will just be completely out of control.... John Adams, the second president of the United States, once made the following statement: "We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other.".... Today, we have an incredibly wicked and immoral government that is governing a population that cannot even agree on what "right and wrong" are anymore.
John Williams of ShadowStats.com - May 31, 2011
Why housing is in a depression - Commentary: New data says the double dip is even worse than the 1930s - Marketwatch - Brett Arends - June 1, 2011 - And the Case-Shiller data masks huge variations in housing markets. Prices have collapsed many suburbs, exurbs, rural areas, and in well-known disaster sites like Miami, Las Vegas and Phoenix. Meanwhile the declines have been much milder in places like Manhattan or Boston. Some high-end real estate is actually selling well. The buyers have money... Is there a silver lining to this? Well, maybe... If you can get the financing, housing is now cheap. Really cheap. Capital Economics reckons housing is now 24% undervalued, and is the cheapest it’s been in thirty-five years... With mortgages rates on the floor, and inflation surely brewing down the road, housing in many parts of the country looks like a good deal. But you’ll have to be patient to see the biggest rewards. Capital Economics says, back in the Depression, it took 19 years for house prices to recover to their previous peaks.
Dreaded Double-Dip Is Here - Greg Hunter - USA Watchdog - June 1, 2011 - Another one of my favorite people to quote is economist John Williams of Shadowstats.com. He has been warning about a sinking economy for months and has been saying any good news is nothing more than “bottom bouncing.” In his most recent report, Williams said, “Most major economic reports in April disappointed consensus expectations and either were flat or negative for the month—including real retail sales, industrial production, housing starts and durable goods orders. Where first-quarter GDP growth slowed versus the fourth-quarter, the stage is set for the GDP to turn negative, again, sometime in the next two quarters, reflecting what would become an official double-dip recession.” Housing has been an unqualified disaster with housing starts and new home sales off 75% from the 2005 peak. Existing home sales are off nearly 30%, and of the homes that are sold, nearly 40% are foreclosures. Four in 10 homes sold as distressed properties do not signal a healthy economy—just the opposite... So, where are we headed? Well, all this bad news is going to push the Fed to print more money to keep the banks from going under. QE2 is supposed to end June 30, but the consensus of experts I quoted said it won’t be long before there is QE3. It will be either overt or covert, but it will be instituted. A double-dip in housing could start a daisy chain of very bad news for the big banks exposed to derivatives and residential real estate. (I wrote about this a few months back. Click here for the complete original post.) Williams agrees, and in his latest report he said, “The Federal Reserve is a private corporation owned by commercial banks or banking interests. The Fed’s primary job is not to generate sustainable economic growth, nor to contain inflation, but rather to keep the banking system sound and healthy. Accordingly QE1 and QE2 likely were targeted primarily at addressing systemic solvency issues, with the Fed using the weak economy as cover. As the systemic solvency crisis continues and/or intensifies, an overt or covert QE3 likely will be in place by third-quarter 2011, under the cover of a deteriorating economy. The broad inflation and economic outlooks discussed in Hyperinflation Special Report (2011) continue unabated.”... Williams thinks there is going to be a “great collapse” between now and 2014. Yes, the dollar and the entire financial system could go down in a giant hyper-inflationary ball of fire. The buying power of the buck will be completely wiped out. Please keep in mind, more than $12 trillion in liquid assets are held outside of the U.S. A stampede out of the dollar could trigger a hyperinflationary event at any time. At the very least, count on increasing inflation in everything but housing.
Half of Last Month's New Jobs Came from a Single Employer — McDonald's - The Weekly Standard - Mark Hemingway - Jun 3, 2011 - According to the unemployment data released this morning, the economy added only 54,000 jobs, pushing the unemployment rate up to 9.1 percent. However, this report from MarketWatch suggests the data is much worse than that.... McDonald’s ran a big hiring day on April 19 — after the Labor Department’s April survey for the payrolls report was conducted — in which 62,000 jobs were added. That’s not a net number, of course, and seasonal adjustment will reduce the Hamburglar impact on payrolls. (In simpler terms — restaurants always staff up for the summer; the Labor Department makes allowance for this effect.) Morgan Stanley estimates McDonald’s hiring will boost the overall number by 25,000 to 30,000. The Labor Department won’t detail an exact McDonald’s figure — they won’t identify any company they survey — but there will be data in the report to give a rough estimate.... If Morgan Stanley is correct, about half of last month's job growth came from the venerable fast-food chain. That is hardly the sign of a healthy economy.
Offshoring has Destroyed the US Economy - Nobel Economist Michael Spence Says Globalism Is Costly For Americans - GlobalResearch.ca - by Dr. Paul Craig Roberts - May 31, 2011 - These are discouraging times, but once in a blue moon a bit of hope appears. I am pleased to report on the bit of hope delivered in March of 2011 by Michael Spence, a Nobel prize-winning economist, assisted by Sandile Hlatshwayo, a researcher at New York University. The two economists have taken a careful empirical look at jobs offshoring and concluded that it has ruined the income and employment prospects for most Americans... All of this was over the heads of “free trade” ideologues, who threw accusations such as “protectionist” at Sir James, Roger Milliken, Herman Daly, Ralph Gomory, Charles McMillion, and myself. These “free trade” ideologues are economically incompetent. They do not know that the justification for free trade is based on the principle of comparative advantage, which means that a country specializes in those economic activities in which it performs best and trades for those goods that other countries do best. Instead, the ideologues think that free trade means the freedom of capital to seek absolute advantage abroad in lowest factor cost. In other words, the free trade incompetents have never read David Ricardo, who formalized the case for free trade... Other economists, especially those high profile ones in high profile academic institutions, were bought and paid for. http://www.informationclearinghouse.info/article28189.htm In exchange for grants from offshoring corporations these hirelings invented “the New Economy,” in which everyone would prosper as a result of getting rid of “dirty fingernail jobs.” The New Economy wouldn’t make anything, but it would lead the world in innovation and in financing what others did make. The “new economists” were not sufficiently bright to realize that if a country didn’t make anything, it couldn’t innovate... To find a Nobel prize-winner documenting the high cost of globalism to developed economies is extraordinary. For the Council on Foreign Relations to publish it suggests that the Establishment, or some part of it, suspects that its hubris has run away with its fortunes, and that different thinking is needed to restore the US economy.
The Federal Reserve Cartel: The Eight Families - Global Research - Dean Henderson - June 1, 2011 - The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths. But their monopoly over the global economy does not end at the edge of the oil patch... According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.[1]... So who then are the stockholders in these money center banks?... This information is guarded much more closely. My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather ironic, since many of the bank’s stockholders reside in Europe.... One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation - founded in 1853 and now owned by Bank of America. A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild. Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. [2]...
Pinks Slips Coming For 450,000 State and Local Government Employees in 2012 - SHTFplan.com - Mac Salvo - May 26, 2011 - In June of 2010 we noted that well known financial sector analyst and the woman who blew the doors open on the 2008 mortgage crisis, Meredith Whitney, was forecasting that two million government employees would see their jobs cut over coming years because of fiscal problems.... It’s happening.... Over 300,000 jobs have been cut in fiscal year 2011, and that number is about to increase 50% going into 2012:
War Zones: As The Economy Dies, Murders, Shootings, Robberies And Looting Erupt All Over America - Before It's news - Wednesday, June 01, 2011 - As the U.S. economy falls apart and millions of Americans descend into despair we are seeing some really shocking things start to happen all over America. The mainstream media keeps telling us that crime is under control, but they are also the ones that keep telling us that we are in the midst of an "economic recovery". Unfortunately, the truth is that the economy is slowly dying. Today, an all-time record 44 million Americans are on food stamps. That number is 18 million higher than it was just four years ago. When people can't get jobs and when people feel deprived they get desperate. The incidents that you are about to see and read about below are very disturbing. Many American communities are rapidly turning into war zones. Sadly, it is mostly young people that are involved in the crimes and the violence that are now sweeping America.... Yesterday, I wrote an article entitled "18 Signs That Life In U.S. Public Schools Is Now Essentially Equivalent To Life In U.S. Prisons", and there were some readers that objected to the article because they said that the youth of today are so wild that if you don't use extreme measures they will just be completely out of control.... John Adams, the second president of the United States, once made the following statement: "We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other.".... Today, we have an incredibly wicked and immoral government that is governing a population that cannot even agree on what "right and wrong" are anymore.
John Williams of ShadowStats.com - May 31, 2011
Friday, June 3, 2011
The 800 lb. Gorilla - Increasing Jobs = Leveling the Global Playing Field
We can push all of the notions in the world about a service oriented creative economy, but if we don't get consumers back, then we won't grow the economy again. What does it take to grow consumption? People have to have money. How do people get money? As the EF Hutton commercial used to state, "They EEAARRNN IT!!!"
How do they earn it. The average person earns money through labor (a job), We have so debased our real job market, that it is no longer functioning properly. The National average real wage (Based on the Consumer Price Index) has not risen in almost two generations and I will bet you that it has actually fallen "substantially" in our area over that same time.
Below is an excellent article that I have read today that shows ten signs that we are in a free fall and I mean free fall in our economy.
10 Worrying Signs Obviously Missed During Tuesday's Market Rally - http://seekingalpha.com/article/272761-10-worrying-signs-obviously-missed-during-tuesday-s-market-rally?source=email_macro_view
Yes, call me an alarmist. Somebody has to be. But look at the real news. Turn off the TV and get on your computer and use the search engine. It will give you a completely different perspective than the pablum.
How do they earn it. The average person earns money through labor (a job), We have so debased our real job market, that it is no longer functioning properly. The National average real wage (Based on the Consumer Price Index) has not risen in almost two generations and I will bet you that it has actually fallen "substantially" in our area over that same time.
Below is an excellent article that I have read today that shows ten signs that we are in a free fall and I mean free fall in our economy.
10 Worrying Signs Obviously Missed During Tuesday's Market Rally - http://seekingalpha.com/article/272761-10-worrying-signs-obviously-missed-during-tuesday-s-market-rally?source=email_macro_view
Yes, call me an alarmist. Somebody has to be. But look at the real news. Turn off the TV and get on your computer and use the search engine. It will give you a completely different perspective than the pablum.
...According to the latest S&P/Case-Shiller price index the National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level. This means housing prices have now fallen by more than they did during the Great Depression. It also means the housing market is not recovering anytime soon and declines seem to be accelerating.
...Tax revenues were 14.9 percent of G.D.P. in both 2009, and 2010. This is substantially less than the 18.5% postwar average. This means the economy is still struggling and one of key ways to slow the deficit is sorely lagging.
...The Financial Times bureau chief, Jamil Anderlini, came out with a piece showing how the growth in the Chinese property market is not sustainable. Given that some estimates show China now consumes up to 50 percent of key global commodities and materials such as cement, iron ore, steel and coal and Chinese real estate is the main driver of that demand; the bursting of this bubble or even a significant slowdown will have worldwide ramifications.
... May Consumer Confidence fell to 60.8. Estimates were for a reading of 66.3. Chicago PMI (The National outlook for Purchasing Manager's Index) was released and showed a reading of 56.3. This was much lower than the expected projection of 63. The previous reading was 67.3. This seems to show a decelerating rate of economic growth, confirming 2nd QTR GDP estimates probably need to come down further.
On the China Outlook -- Three worrying signs from China. Massive drought has caused food prices to rise a reported 20% this month in Shanghai. Chinese authorities also allowed energy producers to bump prices in some regions as the country is facing the worst energy shortages in a decade. Finally, land prices, which are already down 20% for the year, could fall further as Chinese developers may be forced to write down assets.
What do you think China consuming up to 50 percent of key global commodities and materials such as cement, iron ore, steel and coal means? If you carry that out what will it mean for us? Competition for Global Natural Resources is going to cause the prices of commodities to sky rocket. And the Fed printing all of this money is only going to exacerbate that!!!
At a time when we need to be searching for stability, our national leaders are creating instability! We need to demand that they seek stability!
Thursday, June 2, 2011
Kumbaya my Lord -- Ohhhh Noooo!!!
Horror for US Economy as Data Falls off Cliff - CNBC - Wednesday, Jun 1, 2011 - Patrick Allen
From the Drudge Report:
Dow tumbles 280 points...
Private Sector Jobs Grew By Only 38,000 in May...
Planned Layoffs Up...
Manufacturing Slows...
The Hound: Where did you read this information first. The admitted double dip has begun. It is really a full-fledged Depression that they can't paper over anymore. It will be further pushed over the upcoming months. The answer will be to raise the debt ceiling, compromise on cuts that would, most likely never, be instituted down the road, and monetize more debt pushing us closer and closer to the reality of hyperinflation.
Do not trust these people. Think about what their agenda is. What are they trying to nudge us towards. They want to monetize more debt to pad their crony pockets before the ultimate crisis begins. Will the Gullible American public wake up to this?
Those who constantly keep pushing the notion that the economy is improving look like idiots at this point. How long have they been touting this line? How long have they been wrong? And mostly how long are the willing dupes of the public going to listen to the "Powers That Shouldn't Be" sing Kumbaya with their eyes closed and their fingers firmly entrenched in their ears. It is way past time to start cleaning house folks. Way past time!!!
P.S. After manipulation and consolidation Silver will be heading back up and way beyond here soon.
The last month has been a horror show for the U.S. economy, with economic data falling off a cliff, according to Mike Riddell, a fund manager at M&G Investments in London.
"It seems that almost every bit of data about the health of the US economy has disappointed expectations recently," said Riddell, in a note sent to CNBC on Wednesday.
"US house prices have fallen by more than 5 percent year on year, pending home sales have collapsed and existing home sales disappointed, the trend of improving jobless claims has arrested, first quarter GDP wasn’t revised upwards by the 0.4 percent forecast, durables goods orders shrank, manufacturing surveys from Philadelphia Fed, Richmond Fed and Chicago Fed were all very disappointing."
From the Drudge Report:
Dow tumbles 280 points...
Private Sector Jobs Grew By Only 38,000 in May...
Planned Layoffs Up...
Manufacturing Slows...
The Hound: Where did you read this information first. The admitted double dip has begun. It is really a full-fledged Depression that they can't paper over anymore. It will be further pushed over the upcoming months. The answer will be to raise the debt ceiling, compromise on cuts that would, most likely never, be instituted down the road, and monetize more debt pushing us closer and closer to the reality of hyperinflation.
Do not trust these people. Think about what their agenda is. What are they trying to nudge us towards. They want to monetize more debt to pad their crony pockets before the ultimate crisis begins. Will the Gullible American public wake up to this?
Those who constantly keep pushing the notion that the economy is improving look like idiots at this point. How long have they been touting this line? How long have they been wrong? And mostly how long are the willing dupes of the public going to listen to the "Powers That Shouldn't Be" sing Kumbaya with their eyes closed and their fingers firmly entrenched in their ears. It is way past time to start cleaning house folks. Way past time!!!
P.S. After manipulation and consolidation Silver will be heading back up and way beyond here soon.
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