Economic Stories of Relevance in Today's World -- December 8, 2013

Low wages are stalling America’s economy - Opinion: Stagnant wages hold back consumption and investment - Marketwatch - Rex Nutting - December 6, 2013 -WASHINGTON (MarketWatch) — American workers should get a raise. They deserve a raise, and the economy needs it, too.                            Low wages are holding us back. Since the official end of the recession more than four years ago, the average wage has barely kept up with inflation, even though workers are more productive and are creating more profits for the owners they work for.                         ALSO SEE: Why Diana Furchtgott-Roth thinks the inequality problem is overblown.

Since June 2009, real average weekly earnings have increased 0.3% per year , even as productivity has increased 1.5% per year. Most of the income gains have gone to the highest paid workers, including the bosses. Real median weekly wages have actually declined 0.8% per year since 2009.

Slow income growth means consumer spending has also grown slowly. Most households are still trying to avoid taking on too much debt (like they did in the 2000s), so they don’t have the purchasing power to buy the additional goods and services that the economy could be producing.

If those additional goods and services can’t be sold, then businesses won’t hire the workers who would produce them, nor will they invest in the buildings or equipment that would be needed.

The U.S. economy relies on consumer spending to drive growth, but consumption is stuck in second gear. With consumer spending growing at less than 2%, it is no surprise that gross domestic product is also stuck in the 2% range. 

Why milk prices may soar to $8 if US goes over 'dairy cliff' - CNBC - Katie Little - December 4, 2013 -Brace yourself: The U.S. is about to go over the "dairy cliff," which could cause milk prices to jump.                      If Congress is not able to pass a new farm bill before the 2008 farm bill expires at the end of the year, a decades-old law will then kick in. As part of this permanent legislation from 1949, the government would then buy dairy products from producers at about twice the current market rate.                  "It could take a period of weeks or a month or two for there to be a trickle-down effect at the retail level," said Chris Galen, senior vice president of communications at the National Milk Producers Federation, a group of 30 dairy cooperatives. "What happens under this permanent law, the USDA is required to basically support a much higher price to dairy farmers."....

Wall Street mortgage businesses bracing for additional layoffs? - Fox Business news - December 2, 2013 - FBN’s Charlie Gasparino on potential Federal Reserve tapering’s impact on Wall Street mortgage units.

Average 30-year mortgage rate jumps to 4.46% - AP Through USA Today - December 5, 2013 -
WASHINGTON (AP) — Average U.S. rates for fixed mortgages rose sharply this week, making home-buying slightly less affordable.                            Mortgage buyer Freddie Mac said Thursday the average rate on the 30-year loan jumped to 4.46% from 4.29% last week. The average on the 15-year fixed loan increased to 3.47% from 3.30%.                        Rates have risen a full percentage point since May after the Federal Reserve signaled it might slow its bond purchases by year's end. Rates peaked at 4.6% in August.                  Mortgage rates have stabilized since September, when the Fed surprised markets by taking no action. And rates remain low by historic standards. The Fed meets later this month and could slow the bond purchases if the economy shows further improvement.                  The bond purchases are designed to keep long-term rates low.

Two Sides of the Moon

Asia - Arena (1996) - Two Sides of the Moon - (Geoff Downes, John Payne) – 5:22

Laser, breathing on my window - Two strings, beating out of time - Koto, warning of the danger - Wake up, is your head still mine?

Now they give you reasons - To fight for love

That's enough - In a paper world - That's enough - Said the Chinese girl - That's enough - Another city falls - Just because we're two sides of the moon

Data, streaming through my window - Chrome stars, whispering their lies - Black sky, hides approaching stranger - Reach out, two should now be one

Disregard the reasons - And look above

That's enough - In a paper world - That's enough - Said the Siamese girl - That's enough - Another city falls - Just because we're two sides of the moon

Moonchild  - a person born under the zodiacal sign of Cancer.

Cancer (June 21 - July 22)
"I Am What I Feel"

It might be said of Cancerians (or "Moonchildren" or Crabs) that "home is where the heart is," for these natives are always aware of the need for the protection and comfort of shelter. This sensitivity for a safe haven extends to both a place to where they are living, as well as their emotions. Ask a Cancer to stay--and find out that they have taken over in subtle ways!

Because this sign is so strongly aware of the close ties of family, they are more open in their expression of feelings for loved ones. The Cancer native plays the role of parent, especially a mother figure, to friends as well as relatives. They must learn not to smother the object of their affections, but to nurture. If they are rejected in their efforts, they are prone to imaginary and real illness, often brought on by worry and emotional upheaval. Cancerians are known for their clinging to relationships, long after they have been cast aside.

Crabs are also emotional to deep extremes, with direct influence of the cycles of the moon, their ruling planet. Their psychic and intuitive links to others make them both pillars of strength and vulnerable targets. The Crab personality is not likely to forget harms done to them, and they can suffer the aches of stomach upsets and ulcers. The crab is known for the hard shell that protects, and Cancerians are tough on the outside and soft-hearted inside. A basic crusty personality can mask the sensitive, shy individual who is unwilling to reveal the moodiness behind the exterior. They are masters of passive resistance, able to act indifferent and unaffected by a lack of harmony with others. They are subtle at reverse psychology, nagging and pleading, and finding out what pleases someone in order to make them change their attitude to suit the Crab. The other party involved often bends their own rules to appease the willing martyr role of the Cancer.

Cancers are also known for their devotion to historical and patriotic ties. They are often the keepers of heirlooms, family records and legacies, antiques and other reminders of the line of heritage. They have a capacity to save for the future, keeping in mind that security also means financial prudence. They can become fussy to a fault with their monies, unwilling to spend even when necessary, holding onto their resources with a greedy insistence. On the other hand, some Crab types, especially mothers with rebellious children, have been known to allow their savings to be spent in hopeful efforts to save their children from troubles.

Newsletter about the City Council meeting of December 3, 2013

I began recording the City Council late last year, because of my desire that the City do it on their own as any modern 21st century community began doing long ago. I had people tell me that they couldn't make it to the meetings, but they would like to see what is going on. I was also told by some council members that my summaries did not truly reflect the record, so having a video/audio recording cannot be misinterpreted.

So below is the City Council meeting. With each agenda item, you can click on the links and it will take you to that specific point in the meeting. You can always drag the marker on the video display to the point in the broadcast that you are interested in seeing.

Agenda about the City Council meeting of December 3, 2013

Highlighted Links below take you straight to that point in the video.





Invocation by Rev. John Duncan, Pastor Bethlehem Lutheran Church, Senior Chaplain – Hickory
Fire Department

Oaths of Office Ceremony

Recognition of Retiring Ward 5 Alderwoman Sally Fox
Hound: Thank You Mrs. Fox for your years of service. There are issues that I disagree with you on and there are issues I agree with you 1,000% on. The issues where we differ, I believe that your heart is in the right place and you want to see the city progress. Myself and others just have a different idea about how to get there. Thank You for the stand that you and Mrs. Patton took in bringing Citizens Requesting to be Heard back to the front of the Agenda and making it relevant again.


Election of Mayor Pro Tempore for Calendar Year 2014 Pursuant to NC General Statute §260A-
70 and Section 2-54 of the Hickory City Code.

Appointment of a City Attorney for Calendar Year 2014 Pursuant to the Hickory City Code, Section 4.151 of the Charter.

Special Presentations
A. Community Appearance Commission’s 2013 Beautification Awards Presentation - http://www.hickorync.gov/egov/documents/1386167263_32073.pdf

Persons Requesting to Be Heard
Larry Pope speaks about the Municipal election system in Hickory and the grievances that the people in Ward 4 have against it.

David Crosby speaks about issues on Old Lenoir Road including the speed limit and he speaks about taxes being returned to the local businesses. (From the beginning - City Version)

Consent Agenda:

New Business - Departmental Reports:
1. Inspiring Spaces Update - Staff will review the last Inspiring Spaces Steering Committee discussions and outline the next steps.

I addressed this in my Initial thoughts about the meeting.

2. Approval of a Recommendation from Parks and Recreation Commission Establishing a Tobacco Free Parks Policy. - There is a current initiative underway between the Catawba County Public Health Department and the North Carolina Community Transformation Grant Project in a unified effort that would establish tobacco free parks in all local governments within Catawba County. Municipalities in the county currently have smoke free policies in place for buildings. All City of Hickory buildings have been smoke free since 1993. Additionally, discussions have been underway for several years to establish tobacco free grounds policies across the county as well. Staff presented two (2) tobacco free parks policies to the Parks and Recreation Commission for consideration at their October 8, 2013 meeting. The first policy option would prohibit the use of tobacco products in all park areas. The second policy option stipulates that tobacco products may be used only in the paved parking lots located in the parks. Whichever policy is adopted would become effective January 1, 2014.

The City Council passed the policy that states that smoking will not be allowed anywhere on park property. Initially it seemed that they would follow the Parks and Recreation Commissions recommendation that smoking would be allowed in the parking lots. The vote was 4-3 with Meisner, Guess, Zagaroli, and Patton supporting a total ban. Lail, Wright, and Seaver voted against the measure, but seemed that they would support the ban with a provision allowing people to smoke in the parking lot.

Hound: I don't smoke, but this isn't enforceable and is another arbitrary administration of government power. If someone is in their car smoking in the parking lot is someone going to tell them they can't do so? And this could get testy. They say the police won't be involved, but someone (in a position of authority) is going to be involved. We deal with this in the restaurant business all the time and sometimes people do get testy about it.

3. Analysis of City Manager’s Employment Agreement - At the November 19, 2013 City Council meeting, Mayor Wright asked that at the next meeting staff provide explanation of how the City Manager’s pay is determined. The manager will review the employment agreement and salary history since his employment in August 2004.

Hound: The City Manager makes $165,000 a year not including benefits. That is over 5x what the median income is in Hickory $27,866 (2010).

General Comments
Alderman Lail speaks about Lenoir Rhyne University being in the quarterfinals of the NCAA Division II football playoffs

Initial thoughts about last night's city council meeting

I will have the city council meeting up in a few hours. I was late to the meeting, so it will begin in progress. Truly, congrats to Sally on her years of service. We might not agree on some things, but I do believe you care about Hickory.

The interesting discussion from the night was about Inspiring Spaces. They are going to bring some recommendations forward at the next meeting; you know the meeting before Christmas.

The number 1 priority addressed is something that is already in the pipeline and is already already being paid for by a private interest and that is the Bob Lackey enhancement to Geitner Park. That will be a beautiful park and a great addition to the community and Mr. Lackey is 100% responsible for it. It would not be happening without him.

The number 2 priority addressed was the redefining of Downtown. I have told you and others have told you that Inspiring Spaces will be about spending money on Union Square. I like the idea of redefining downtown. I spoke about it 4 years ago.

Hickory must redefine concept of downtown - HDR Editorial - February 26, 2009

I don't like where my thoughts tell me the doublespeak will take us. I will point to where Andrea Surratt said that Inspiring Spaces wasn'r going to be about Downtown and we had already invested enough Downtown recently with "The Sails." I have the plays and I don't even have to steal their playbook.

The number 3 priority mentioned was splash pads. This was spoken of as "Aquatic Recreation". It was mentioned that they will be building four of these. Personally, I have had nothing against splashpads, but there needs to be a pool in the community and this should not be a substitute.

The number 4 priority addressed is the Main Ave corridor. They are looking to connect the L-R area with Union Square. This isn't a bad concept. They call this the Main Ave Linear Park. I thought that the 1st and 2nd ave SW corridor would and should be more of a priority.  This is another focus on Old Hickory.

Wanda Arnold, You are a Patriot

I read the Letter to the Editor in the Hickory Daily Record this morning in response to your response of a response to your initial Letter to the Editor talking about Alternative Media and your legitimate concerns about issues facing our nation and its citizens.

I have agreed with what you have espoused so far and appreciate your open mindedness. I know that you visit this site and many of the others that I visit also. I have read many of Mr. Flo's LttE in the past and appreciate his candidness, but he is still stuck inside the box. There are many people who consider themselves to be mavericks and free thinkers who live inside the box.

Wanda, we are called Conspiracy Theorists because we are looking into issues that way too many people are too lazy to look into themselves. Alternative media is the real media. The television is an idiot box. It is there to mesmerize you and feed you pablum. It is entertaining; but like anything, overindulging is bad for your health.

Going to alternative media sources and learning how to read between the lines is how you stay ahead of the curve. With the corporate media, issues have to be funneled through the proper channels and meet various criteria before they can be mentioned -- ie don't upset Big Brother. Then they want to figure out how they can explain the information to the least common denominator mindset. Under such a system, only those well connected to the government and major corporations have the privilege of knowing the details of important issues.

Do you want to be the first to know or the last to know?

Mr. Flo gets into the matter of the Banking Industry. I don't know what world Mr. Flo lives in, but Ben Bernanke and the Federal Reserve's manipulations of the currency have not helped anyone, but the wealthiest of the wealthy.  He did not keep us out of a Depression. By most legitimate measurements, we have been buried neck deep in one.

A little economic lesson for Mr. Flo, increasing the money supply decreases the value of the dollar. That means it takes more dollars to buy things. Inflation is a variable in determining interest rates. Only through the Fed's manipulated interest rate policies have the rates been kept absurdly artificially low.

What is the Fed doing with this extra money? Their policies have encouraged the Financial Industry to manipulate commodities across the board and across the world.The Fed is lending money to investment institutions who are placing bets in the worldwide financial markets. This is bidding up the price of commodities and creating unintended consequences and moral hazards in the markets. This manipulation of interest rates downward is like keeping a lid tamped down on a steaming pot. Eventually the billowing force in the pot will cause it to explode. That is what is going to happen to interest rates, if it doesn't end up making the markets completely seize up in the process. Ask people who have bought money market instruments how they feel about being paid 1% or 2% on their money. When interest rates spike, it is going to mean bad consequences for the United States Annual Deficit and the National Debt.

I am also not comfortable following Mr. Flo's advice and trusting the government to do what is best for me. I am not comfortable to allow them free rein without checks and balances to do what is right. In a free and open society there is nothing wrong with questioning authority. If necessary, there is nothing wrong with citizens redressing their grievances through civil disobedience.

I believed in the wars that occurred after 9/11 in the beginning, but after all of these years and looking back on what has occurred, I have felt foolish. Mr. Flo talks about feeling secure because of the security apparatus that has been put in place; I do not. Look at all of the money that has been spent and we are constantly told that we need to spend more and the reality is that it all is benefiting the very few at the expense of the very many.

Ben Franklin on Liberty:

They that can give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety.

The debts racked up over the last decade have been directly attributable to this negative force of power. Mr. Flo talks about this mechanism preventing further terror attacks, while I say the real terror has been against our individual liberties. Why is it that our voice doesn't count and our monies are spent when we are against all of this... and there is no real debate of the issue?

They call us Conspiracy Theorists, because they don't want to debate the issues. We won't partake in their Kool-Aid and this frustrates them to no end.  They can have my share, because I am not going to join the cult; I am not a Sunshine Patriot. Because we don't go along to get along and automatically support the Powers that Be, they want to take away our freedom to express ourselves. They want to shut us down.

Wanda, others, one more quote from Ben Franklin:

Freedom of speech is a principal pillar of a free government; when this support is taken away, the constitution of a free society is dissolved, and tyranny is erected on its ruins. Republics and limited monarchies derive their strength and vigor from a popular examination into the action of the magistrates. - "On Freedom of Speech and the Press", Pennsylvania Gazette, 17 November 1737.