Economic Stories of Relevance in Today's World -- March 11, 2012

$1B of TSA Nude Body Scanners Made Worthless By Blog — How Anyone Can Get Anything Past The Scanners - TSA Out of Our Pants!. wordpress.com - March 6, 2012 - This video is here to demonstrate that the TSA’s insistence that the nude body scanner program is effective and necessary is nothing but a fraud, just like their claims that the program is safe (radiation what?) and non-invasive (nude pictures who?). The scanners are now effectively worthless, as anyone can beat them with virtually no effort. The TSA has been provided this video in advance of it being made public to give them an opportunity to turn off the scanners and revert to the metal detectors. I personally believe they now have no choice but to turn them off.               Please share this video with your family, friends, and most importantly, elected officials in federal government. Make sure they understand that your vote is contingent on them fixing the abuse that 200,000 passengers face from the TSA on a daily basis.


States Facing 'Sleeping Cancer' in 96% Unfunded Retiree Benefits - Bloomberg - Darrell Preston - March 10, 2012 -- The near-failure by U.S. states to fund rising retiree health-care costs for millions of government workers threatens to produce budget crises similar to the one that pushed Stockton, California, to take a step toward bankruptcy last week.                   States haven't financed almost 96 percent of the $627.4 billion they were projected to owe for future retiree benefits in 2010, according to Bloomberg Rankings data. The estimated deficit grew from about 95 percent in 2009 as governors coped with lower general-fund revenue and rising demand for services following the longest recession since the Great Depression...              Delays in containing such expenses just widen the funding gap, said Glen Volk, an actuary for Itasca, Illinois-based Gallagher Benefit Services Inc., a consulting firm. States also may face higher borrowing costs as well as more pressure to cut services to pay for promised retiree benefits, he said.              Most states cover such expenses on a pay-as-you-go basis, yet per capita U.S. health-care spending rising an average 5.8 percent annually for the 10 years through 2009 has made covering required payments increasingly difficult. Stockton, confronting a $417 million unfunded liability for retiree medical benefits, took a step toward Chapter 9 bankruptcy Feb. 29 when the City Council voted to enter a 60-day mediation with creditors.


Will 2012 begin the unclogging of 6,000,000 distressed properties? Over 40 percent of the 2 million active foreclosures stand with no payment in over two years and some with three years and more. Foreclosure starts surge 28 percent in last month of data. Mid-tier markets in Los Angeles and Orange County contract severely in 2011. - Doctor Housing Bubble.com - March 8, 2012 - The housing market is clogged like backed up plumbing in an old building.  The shadow inventory is still very present even though visible inventory declined last year.  It seems like we are diving back into the rabbit hole where information is disguised and bad news is spun as being good.  Take for example the number of homes actively in foreclosure.  Early in 2009 we had roughly 2,000,000 homes actively in foreclosure.  The number today?  2,000,000.  The Catch 22 of the giant bank bailouts and financial shell game was the bet (hope) that housing prices would have gone back up after five years especially with trillions of dollars funneled into the banking sector.  I mean what can go wrong when you trust banks with housing right?  The reality is sinking in that home prices are going nowhere but down unless household incomes rise and that is why we saw foreclosure starts surge last month.  The shadow inventory is coming online and that means lower prices.  Don’t think this is a shell game?  Over 40 percent of the 2,000,000 foreclosures have not had a payment in two years.  This isn’t even factoring in the 4 million delinquent loans that are working their way into the REO side of the equation.

No. 414: Hyperinflation Special Report 2012 - U.S. Hyperinflationary Great Depression Moves Ever Closer - U.S. Government and the Federal Reserve Effectively Have Destroyed - Global Confidence in the U.S. Dollar - Systemic-Solvency and Economic Crises Have Not Abated - Precursors to Ultimate Dollar Disaster Are in Place;2014 Remains the Outside Timing for Same - Shadow Government Stats.com - January 25, 2012 - Hyperinflation 2012 is the fifth in a series of related writings going back to 2006.  It updates and replaces the Hyperinflation Special Report (2011) of March 15, 2011, which preceded: the U.S. government’s demonstration of a lack of political will to address the country’s long-range insolvency; the downgrade of the “AAA” rating of U.S. Treasury securities; an ensuing U.S. dollar panic, dollar support operations and extremely unstable U.S. and global financial markets; a temporary shift in market focus to Euro-era issues; and growing recognition of the ongoing and deepening economic and systemic-solvency crises.  Nonetheless, the outlook has changed little.  With the passage of 10 months since the last report (updated circumstances have been covered regularly in weekly Commentaries), events just have continued to move this pending ultimate financial crisis into much closer time proximity.    

U.S. Still Down 6 Million Jobs - Smart Money.com - Sarah Morgan - March 9, 2012 - ...The economy added 227,000 jobs in February, more than the 204,000 economists expected, the Labor Department reported this morning. The unemployment rate remained unchanged at 8.3% from last month. But while the economy has added more than 200,000 jobs for three straight months, the damage to employment done by the Great Recession is still far from repaired.

Between December 2007, when the recession officially started, and February 2010, when the Labor Department’s reports show employment hit bottom, the economy lost more than eight million jobs. Between then and now, we’ve added back more than two million jobs. With that big of a gap yet to fill, it’s extremely unlikely the unemployment rate will fall to a more “normal,” pre-crisis level of 6% by the end of this year, says Robert Johnson, the associate director of economic analysis at Morningstar. A rate below 8% — last seen in January 2009 — is possible by the end of the year, however, Johnson says...


U.S. Unemployment Up in February  - Underemployment is 19.1%, up from 18.7% in January - Gallup -  Dennis Jacobe, Chief Economist - March 8, 2012 - U.S. unemployment, as measured by Gallup without seasonal adjustment, increased to 9.1% in February from 8.6% in January and 8.5% in December. The 0.5-percentage-point increase in February compared with January is the largest such month-to-month change Gallup has recorded in its not-seasonally adjusted measure since December 2010, when the rate rose 0.8 points to 9.6% from 8.8% in November. A year ago, Gallup recorded a February increase of 0.4 percentage points, to 10.3% from 9.9% in January 2011.           In addition to the 9.1% of U.S. workers who are unemployed, 10.0% are working part time but want full-time work. This percentage is similar to the 10.1% in January, but is higher than the 9.6% of February 2011.

Bank of America In Trouble? - Rolling Stone.com - Matt Taibbi - March 2, 2012 - ...It’s a very bad sign that a bank is in a desperate cash crunch when it tries repeatedly to gouge its customers. David Trainer, an analyst for Market Watch, a WSJ publication, wrote that the new fees are a sign of series trouble at BAC. He writes:

In my opinion, there are four actions taken by financial services that signal the company is headed to serious trouble.
1. Management shake-up and major layoffs - lots of layoffs over the past year

2. Exploiting accounting rules to boost earnings - SFAS 159

3. Drawing down reserves to boost earnings: to the tune of $13.3 billion in 2011 and 2012

4. Bilking customers with new fees: tried it before and trying it again

Bank of America has taken all four steps. Bilking customers with new fees is a desperate measure of last resort because it requires exploiting the one asset the bank has left, namely its customers.

Gerald Celente on Goldseek Radio - March 9, 2012

Newsletter about the City Council meeting of March 6, 2012

This newsletter is about the Hickory City Council meeting that I attended this past week. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.

At right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.

You will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.

Here is a summary of the agenda of the 2/21/2012 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below:

Please remember that pressing Ctrl and + will magnify the text and page and pressing Ctrl and - will make the text and page smaller. This will help the readability for those with smaller screens and/or eye difficulties.

Invocation by Rev. Jay Robison, Pastor, Viewmont Baptist Church - Shout Out to Harry Hipps





The Hound - A local Pastor gets in on the running joke of Hickory. The people of Hickory aren't a thankful lot... Water running, Good Roads, Emergency services keeping us safe, yada, yada, yada... We point out the things two or three things that aren't going so well instead of all of the things that are. As though Hickory's leadership is delivering the amazing miracle of running water, paved asphalt, and emergency service communications.

Sad to say that it is understandable when a local pastor doesn't understand the plight of the average ordinary citizens, belittling them, and choosing the side of government over the people, because we see it time and time again. It seems that we are looked upon as workhorses and cashcows by these ministers, instead of individuals who have hopes and dreams with desires towards fulfillment.

I hear the good words spoken during these invocations, such as constantly talking about "the least of these," and yet the actions never move us towards those words and the ministers do not seek to move us towards those words with anything other than lip service.

(It was brought to my attention by one of the Pastor's congregants that he felt I was being personal towards Pastor Robison. This was not meant as a personal attack on the Pastor. It is a criticism of those who diminish the legitimate concerns of people in the community who speak up. I removed the word constantly (as in constantly belittling), because I do have to admit that it could be misconstrued. I was not speaking of him personally in that context.)



Pledge of Allegiance
Mayor Wright welcomed and introduced Boy Scouts from Troop 284 at Sandy Ridge Baptist Church, who were in attendance to work on their Citizenship in the Community Merit Badge.


Special Presentations:
A. “Life. Well Crafted.” Presentation - Members of the Business Development Committee and Communications Director/Brand Manager Mandy Pitts will present the branding and marketing presentation that will begin making its way to civic and business groups, schools, non-profits, and to any and all organizations that would like to learn more about how Hickory and its partners are moving forward with a strategy to boost economic development in our community.

Newsletter about the City Council meeting of March 6, 2012 - Addendum - Hickory Branding Initiative


B. Presentation of FY 2012-2013 Board and Commission Work Plans Board/Commission Presenter
1. Library Advisory Board - Ms. Kathy Ivey - Each board member will give at least 24 hours of volunteer time to the library annually. This will help library to offset the reduction in services due to staff shortages. This will also help board members get to know the library staff on a more personal level. The board will contribute at least one article to the Hickory daily record about the library, contribute. One article to the friends of the Library newsletter, speak to the neighborhood college classroom, and make at least one appearance on the first talk program on WHKY.

On the State level, the board will advocate for the library by attending Library day in Raleigh and by contacting state representatives about specific library related issues, will help the library without taxing existing library resources.

The library will set up a subcommittee to develop programs and other auxiliary activities in conjunction with the visit by author Nicholas Sparks at the library in September 2012. The board has pledged to keep the library technologically current in order to meet the needs of library users. There is no financial implication for this plan. Maher right stated that our library is consistently ranked at or near the top of libraries and in the state.

2. Citizens’ Advisory Committee - Mr. Todd Hefner -  Reviewing Block Grant Funds, North Carolina Housing Finance Agency Funds, and other Community Based Funding. Recommend Loan Applications related to the above to City Council. Trying to create affordable housing for the Green Park, Kenworth, Ridgeview, and West Hickory Neighborhoods. Groundbreaking will take place on June 1 in the Green Park area. Working with the WPCOG for affordable housing through First Time Homebuyer Program. Continue to investigate viable options to rehabilitating at Ridgeview area of 3rd Street Court Southwest and 8th Avenue Dr. SW.

3. Community Appearance Commission - Mr. Leroy Harris - -Requesting $52,300 1) Community Revitalization through community appearance ($30,000) and landscaping ($10,000) matching grants for aesthetic improvements. 2) Litter program for Saturday pick up ($10,000) augments the city's existing effort to clean up litter. 3) Tree City USA - Arbor Day Tree Celebration ($700) 4)Beautification awards ($100 for awards and certificates) - Adopt a Spot program. The commission is requesting an additional $1,000 this year that will be spent on a project of their choosing.

4. Community Relations Council - Mr. Edgar Hernandez - Overall plan costs $17,000. Maintain the grants program from the past, which assists private non-profits and public agencies ($12,000). Multi-Cultural event to be sponsored every year. Encourage City leaders to be educated on Human relations issues that can create better human relations in the city. Those given grants will be asked to partner with the CRC more.

5. Hickory International Council - Mr. Hani Nassar -8th time consecutive year he has presented before the City Council. 11 members represent 9 countries and a 5 person advisory board. Spoke about the annual Springfest/Unity Day at the SALT Block during the first week of May. PANGEA United Nations Conference held at Lenoir Rhyne on March 8 and 9, 2012. The budget for this event will be requested that $5000 for next year. Working in association with the Footcandle Film Society to show International Films. Community Conversations - Community Outreach at the Library and other high traffic areas. All area schools are represented at their meetings.

6. Hickory Regional Planning Commission - Mr. Brian Frazier - Implementation of  Hickory by Choice 2030 and the Land-Use Development plan. The planning commission seeks no funding. they have applied for $400,000 assessment grant for Brownfield funding and should find out sometime in late April or early May.

 7. Hickory Youth Council - Mr. Youssef Amrani - Comprised of 25 students from all of the area high school (public and private) Act as an advisory group to the City Council and liaisons to the various Boards and Commissions. Participate at State youth conference events.  Host Dialogue Circles - This year they will discuss Cyber Bullying and other social media. Promote community and general public knowledge in the hearts and minds of our youth. Requesting $3,600 for general uses, programs, and a possible Summer retreat. Touring various city departments within the city and $300 will pay for dinner for the members. Actively participate in the North Carolina youth Council in $2,200 will help with travel expenses.


8. Historic Preservation Commission - Mr. Zack Taylor - the budget is $15,100. Administer the historic preservation program. Review of applications for appropriateness. marketing for the historic preservation incentive grant program. Hope to implement a phased historic plaque program. Developing a historic preservation master plan. State grants that would help to do this would require a 40% match from local government.

9. Parks and Recreation Commission - Mr. Addison Fox - The First priority is to renovate and upgrade existing facilities. Second priority is to continue to enhance the cities efforts create greenways and trails in accordance with the 2005 greenways and trails Master plan. Number three recommend the development of the dog park within Hickory. Number four to pursue the Parks and Recreation committee recommendation of creating an aquatic facility within the city. That would serve the entire Hickory community. Support the development of the Cloninger Mill Park and its master site plan and the sandy pines Park plan. Support the development of an outdoor amphitheater at Henry Ford regional recreation Park.

10. Public Art Commission - Mr. David Baldwin - Mr. Baldwin stated that they have been doing maintenance and restoration on existing art pieces ($8,000). Whatever store the story sculpture at the library and the game structure and the base of the tower of miracles right here in downtown Hickory. They have added more benches to the collection of the art on the benches project. Their continuing efforts to work with members of the community to bring in some private funding to install some artwork at the baseball stadium. They are asking for a budget of $20,000 upcoming year. 5500 will be towards sculpture projects. In this year of they are looking to improve and create the art walk. This information will be on the Internet and in print brochures. They would like to add additional sculpture projects. The many of these come from artisans here in the community, and they will continue with phase 3 of the art on the bench project in the upcoming year.

11. Recycling Advisory Board - Mr. Andrew Ballentine - The Green Play cost will be $3000. This is provided to all third and fourth graders in Catawba County. The board will continue to promote information and education on recycling. The participation rate in the community is 79%. Alder Patton talked about encouraging the household hazardous waste program. Alder Fox asked about how they were coming along with the expansion to mixed paper. Mr. Ballantine said that the progression involves working with Republic with the expansion and retrofitting of their facility towards single stream recycling and this will many thanks to open up and be recycled at the curb.

12. Business Development Committee - Mr. Alan Jackson - The Business Development Plan for the upcoming year as presented by Alan Jackson the Chairman of the Business Development Committee.... Including the Branding Initiative, Innovative City Incentives and Grants, Microlending Function, Peer Networking designed towards collaboration - Guilds, Connecting local talent, Social Media Training for local businesses, and thr rollout of HickorySpeaks.com.



Consent Agenda:

A. Approval of Tax Refund, as Recommended by Catawba County Tax Office, to Foothills Mortgage and Equity Inc. in the Amount of $323.12


B. Community Appearance Landscape Grant to Charis Hickory, LLC – Non-Residential Property Located at 1928, 1936, 1945, 1950, 1958 and 1960 Main Avenue SE in the Amount of $2,437.50 - This non-residential property, owned by Charis Hickory, LLC, is located at 1928, 1936, 1945, 1950, 1958 and 1960 Main Avenue SE, was previously occupied by Corning Cable Systems, and the facilities currently constitute what is referred to as the Catawba Industrial Commons. The intention is to upgrade the existing landscaping. The applicant has provided two bids for the proposed improvements which total $4,875.00 and $5,900.00. The applicant has indicated they wish to go with the lower of the two bids, so the value of the grant would be $2,437.50. On February 27, 2012, the Community Appearance Commission unanimously voted to recommend funding of the requested grant in the amount of $2,437.50.


C. Contract Renewal with Marlowe and Company for Federal Legislative Lobbying and Consulting Services in the Amount of $3,750.00 Per Month - Staff works throughout the year with Marlowe and Company staff members who provide consulting services in the form of grant assistance, legislative consulting and lobbying support for local issues at the federal level with the North Carolina Delegation. As the City prepares its State and Federal Legislative Agenda for 2012, Marlowe and Company staff will assist in reviewing it against a number of federal programs as well as make arrangements for meetings with key officials in Washington, DC, including the City’s delegation. The cost of the contract renewal remains at $3,750.00 per month and will extend until June 30, 2013. (The Hound - What do we get out of this other than an annual bill for $45,000)

D. Accept Donation of Painting of Zahra Baker from Hickory Resident Paul Wise to be Displayed at the Floyd W. Lucas Jr. Police Headquarters - The Hickory Police Department requests approval to accept the donation of a painting of Zahra Baker to be displayed at police headquarters. Mr. Paul Wise, a Hickory resident, purchased a watercolor painting of Zahra Baker at a recent auction. The piece titled, “Little Miss Baker”, is the work of Artist Tom Helfert. Mr. Wise felt it appropriate for the painting to be displayed at police headquarters as a gesture of his appreciation for all the work done by “Team Zahra” on the Baker case. If accepted, the painting will be displayed in an appropriate location, and no other costs will be needed. Staff recommends acceptance.


E. Resolutions Approving Terms of Refinancing With BB&T - The Finance Department discovered that the City can refinance current outstanding installment purchase contracts with BB&T and realize significant savings over the remaining life of the debts. Currently, two resolutions are being presented to Council to approve refinancing terms, with all terms staying the same except the interest rate. On the Henry River Sewer Lines, the rate will decrease from 3.55 percent to 3.19 percent over the remaining 14 years of the debt, saving $207,492. On the Water and Sewer Annexed Area II, the rate will decrease from 3.79 percent to 1.79 percent over the remaining 6.6 years of the debt, saving $106,220. The fee to BB&T to refinance these two installment purchase debts will be approximately $19,500. At next month’s meeting, we will bring four additional outstanding installment purchase debts, as the city may only refinance up to $10 million per month and still remain Bank Qualified, per the Local Government Commission.


F. Offer to Purchase Property From Paul Thompson to City of Hickory to Purchase Approximately 6 Acres Located at 3404 6th Street Drive NW in the Amount of $36,000.00 ($6,000 Per Acre - Catawba County PIN 3704-07-67-2574) - Paul Thompson has presented an offer to purchase approximately 6 acres owned by the City and located at 3404 6th Street Drive NW (Neill Clark Park Property). Mr. Thompson
would like to purchase the property to donate to the c urch next door for expansion of a building. Currently, the property is zoned R-2, and the exact land amount will determine the price after the survey is complete. The purchase contract states that the buyer will obtain a final survey of the land proposed for sale before closing. Staff recommends acceptance of the offer to purchase from Mr. Thompson and authorization to advertise for upset bids. Once the property is advertised, other parties will have ten (10) days to submit upset bids.


G. Acceptance of NC Department of Transportation Division of Aviation Grant No. 36237.66.4.2 – Taxiway B, Taxiway S and North Apron Pavement Rehabilitation Project in the Amount of $88,824.00 ($79,942.00 - 90% Federal Share and $8,882.00 – 10% Local Share) - This grant, in the amount of $79,942.00 (Federal share), has been awarded to the City of Hickory/Hickory Regional Airport for the design through bidding phases of Taxiway B, Taxiway S and North Apron Pavement Rehabilitation Project. This project is part of the continuing airfield improvement program, and the rehabilitation of these pavements is critical to the continued service to the based and transient customers of Hickory Regional
Airport. Staff recommends approval.

H. Talbert & Bright Work Authorization for the Design Through Bidding Phase Services of the Taxiway B, Taxiway S and North Apron Pavement Rehabilitation Project in the Amount of $85,424.00 ($76,882.00 – 90% Federal Share and $8,542.00 – 10% Local Share) – NC Department of Transportation Division of Aviation Grant No. Grant Project 36237.66.4.2 - This work authorization will provide for design through bidding phases, pre-design geotechnical investigation and report, and topographic survey for this grant project and will be paid for out of grant funds. The existing pavements are highly oxidized with cracking and are in need of rehabilitation, which will be determined by the engineer after receiving the pre-design geotechnical investigation report, recommendations, and the topographic survey. Staff recommends approval.


I. Budget Ordinance Amendment
1. To budget a $10 Library donation from the Waverly Book Club the Library Books line item.
2. To budget a $4,500 Library donation from Friends of the Hickory Library in the Specialized Equipment line item. This donation is to help fund a projection system for the meeting room.
3. To appropriate $3,205 of General Fund Balance to the Police Department Supplies line item. This appropriation is necessary to pay for DARE (Drug Abuse Resistance Education) shirts for graduation. $3,205 represents Police State Reimbursement balances from previous years (2004, 2005, 2006, 2007, 2008, 2009 and 2010) that have rolled into Fund Balance at year end, therefore an appropriation is necessary.
4. To transfer $2,548 of General Fund Contingency to the Economic and Community Development Other Miscellaneous Expenditure line item. This transfer is necessary to pay for "For Sale" signs for the Cloninger Mill property and to pay for the Business Development Committee lunches for the remainder
of the fiscal year.
5. To budget $328 of Miscellaneous Revenue in the Fire Department Maintenance and Repair of Vehicles line item. These funds were received from Mountain Recycling, Inc. for the sale of salvaged metal from surplus Engine 14.
6. To budget a $1,500 donation from the Hickory Elks Lodge in the Parks and Recreation-Recreation Supplies line item for the 2012 Easter Egg Hunt. The City of Hickory's Park and Recreation Department coordinates this annual event.
7. To transfer $39,000 of Water and Sewer Fund Contingency to the Communications operating budget for the Branding-Marketing effort. Of the $39,000 budget $8,000 is designated for Advertising through partnerships with community events, $12,000 for Departmental Supplies (promotional items and
miscellaneous supplies for presentations) and $19,000 for Other Professional Services (Trademark/Legal fees and Ad Agency costs).
8. To transfer $3,281 from the Police Department Capital Vehicle line item to the Governor’s Highway Safety Program Grant project. This transfer is for the purchase of 4 Pole Radars. The granting agency does not allow grant adjustments; therefore a transfer from the Police Department capital budget to
the Grant Project Non-Asset Inventory line item is necessary.
9. To budget a $4,933 transfer of unused revenue from the Grace Chapel/Hwy. 321 Connector project to the General Fund-Appropriated Fund Balance. This amendment is necessary to close the capital project and return $4,933 of unspent monies to the General Fund.



Informational Items
A. Report of City Manager Mick Berry’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
B. Report of Mayor Rudy Wright’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
C. Report of Alderman Brad Lail’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
D. Report of Alderman Bruce Meisner’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
E. Report of Alderman Danny Seaver’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
F. Report of Alderman Hank Guess’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
G. Report of Alderwoman Sally Fox’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
H. Report of Alderwoman Jill Patton’s travel to attend the Special Council Meeting in Asheville, NC on January 31, 2012 (per diem - $10.18)
I. Report of Alderman Brad Lail’s travel to attend the Emerging Issues Forum in Raleigh, NC on February 6-7, 2012 (registration - $275.00; room - $235.65; per diem - $51.00)
J. Report of City Manager Mick Berry’s travel to attend the Emerging Issues Forum in Raleigh, NC on February 6-7, 2012 (registration - $275.00; room - $259.65; per diem - $8.50; mileage – $199.25)
K. Report of City Manager Mick Berry’s travel to attend the NC City Management Seminar in Durham, NC on February 1-3, 2012 (registration - $300.00; room – $232.50; per diem - $42.50; mileage - $177.05)


Recognition of Persons Requesting To Be Heard

Larry Pope - Newsletter about the City Council meeting of March 6, 2012 - Addendum Larry Pope - Citizen Requesting to be Heard

Newsletter about the City Council meeting of March 6, 2012 - Addendum - Hickory Branding Initiative

Special Presentations:
A. “Life. Well Crafted.” Presentation
Members of the Business Development Committee and Communications Director/Brand Manager Mandy Pitts will present the branding and marketing presentation that will begin making its way to civic and business groups, schools, non-profits, and to any and all organizations that would like to learn more about how Hickory and its partners are moving forward with a strategy to boost economic development in our community.

The following presentation was given by Mandy and Alan Jackson (Chairman of the Business Development Committee).






Presentation by Branding Director Mandy Pitts and Business Development Committee Chairman Alan Jackson - In this presentation we learn about the original creation of the effort and the implementation of the initiative.

A successful branding effort will attract Businesses/Entrepreneurs, Visitors, Live Anywhere Professionals, Families, Active Adults, and The Younger Generations - Generations Y and Z. The Brand is what people say or how they describe you when you aren't around. Successful Branding entails management of your reputation. Branding should contribute to policy making, economic and social development, not just promotion, but to strategy.

In 2010 this Branding Initiative was deemed to be the Business Development Committee's priority objective. Out of 18 submissions of Requests for Proposals, Northstar Destination Strategies was hired to help implement the Branding campaign.

“For doers and makers seeking a well-rounded community, Hickory is a bridge between Asheville and Charlotte at the foot of the Blue Ridge Mountains along I — 40, where a collective spirit of craftsmanship strengthens any endeavors with detail, artistry and quality.”

Mandy speaks about the key being the creation of partnerships with Businesses and Civic Groups to coordinate and manage the implementation of the Brand message.

December 2011 City Snippets - http://www.hickorync.gov/egov/docs/1322063831_998138.pdf

Find Your Spot.com

Start Something Here.com

Hickory Speaks.com


The Hound - I have to admit that I have been a little wary of this campaign, but after this presentation I felt a lot better. As is stated, this effort has to be more than about the slogan. It must "contribute to policy making, economic and social development, not just promotion, but to strategy."

There was an article in the Hickory Daily Record this past Sunday untitled, "They didn't see job loss coming." I know Ray Salisbury and to see what happened to him struck a chord with me. It has been an all too common occurrence in this community over the last decade. It has created a class of people who are permanently or chronically unemployed in this community. And all too often we have seen a lack of sympathy/empathy for these people.

That is why this craftsmanship paradigm must be utilized as a priority to put these people back to work. That is the priority and focus must not be lost on that endeavor. That is what will improve this community. That will lift wages and get people spending money again. In Economics, we call it the velocity of money -- how many times you turn money over. The velocity of money is trickling in our community. That is the reason why we can't find traction. We have to find ways to create value in the community to draw dollars into the community. Trading dollars amongst ourselves is only going to keep us spinning our wheels.

That is where this marketing endeavor comes in. We need eyeballs to look at Hickory. For far too long in the 1990s and early 2000s, we had people who wanted to suppress the growth of Hickory. Think about a pressure cooker. When you put that lid and weight on it will lead to an explosion if you keep the heat going, that is what people thought was going to happen, but in Hickory the heat got turned off. We lost our investment capital and job base when our industry was offshored and everything just fizzled.

The lesson that should be learned from the experience that we experienced is that you have to work towards growth without tamping it down, because you cannot take for granted that you can keep that fire going forever. People thought our local industrial paradigms (furniture, textiles, and fiber-optics) would go on to infinity and they couldn't see the forest from the trees. The reality of the creation and implementation of a Global Economy.

What am I getting at? The endeavors that we are trying to implement are designed to restart our local economic engine. We cannot micromanage every detail and second guess every move. It is imperative that we move with a sense of urgency. We have to take some risks to get this thing moving again. That is the reason why I grow so frustrated sometimes, because some people want to think that we can find the perfect solution without assuming any risk. If it were that easy, we would have never had any problems to start with.

Newsletter about the City Council meeting of March 6, 2012 - Addendum Larry Pope - Citizen Requesting to be Heard

The following occurred when Larry Pope requested to be heard during the City Council Meeting of March 6, 2012. Mr. Pope states that, "When the elected mayor of a city interferes with the rights of any citizen, it implies corruption within city government. I feel this is the case with the current mayor of the City of Hickory."

"I am unsure but I believe that the District Attorney's office in Catawba County was contacted about this matter by outside sources and the victim of the alleged assault was told by the assistant district attorney that he was going to dismiss the assault claim because no medical damages were incurred."

... "I am unsure but I believe that the District Attorney's office in Catawba County was contacted about this matter by outside sources and the victim of the alleged assault was told by the assistant district attorney that he was going to dismiss the assault claim because no medical damages were incurred."

... "In my opinion, the Mayor of the City of Hickory did not want a department head that was established under the City of Hickory Charter being held accountable to such a charge. Once again, I believe that there is a possibility of corruption by the City of Hickory and the Catawba County District Attorney's office."

After Mr. Pope's comments the Mayor asked for a 5 minute recess and returned, in summation he responded, ""Corruption and my name have never appeared on the same page before and won't again if I can help it," Wright said. He said he intends to meet with his attorney this morning. "My attorney and I will look at this and see what can be done."

 The Hound: Regardless of what people may think, I do not enjoy these confrontations. I do however feel that citizens deserve to be heard and that is why I many times post Larry Pope's and others' addresses of the City Council. And it isn't about citizens getting up and talking to the wind. Our leaders are supposed to listen and have concern about the issues that are brought forth. And we can tell whether they are mentally digesting those concerns by the actions they take and when one looks what do those actions or inactions show?

The problem is that there is a lack of trust and mutual respect in the City of Hickory related to governance and political gamesmanship. No one wins when this occurs and there is much collateral damage that results from these escalations and one upsmanships. No one is learning a lesson here - now or going forward. All we see are labels. It is understandable that people have to describe others, but labeling people to try to marginalize them only leads to hostility.

We are all human beings. We all have worth and we all have value. The Mayor is now saying that he is going to shut people down. That isn't the answer. What we need are town hall meetings so that we can separate these citizen discussions from these Council processionals as much as possible. Citizens need to be able to address their concern in an open and formal environment. My release of this event removes the "he said - she said" from the table. The only "he said -  she said" occurs in limited one-on-one or city-citizen closed environments.

We can all contribute towards local governance and when we do it results in better community relations and thus quality of life. People talk, yada-yada-yada, about wanting this community to have an excellent quality of life. When they say people, who are they talking about? Are they being inclusive or exclusive?

This situation needs to be deescalated through a positive means, but my fear is that we haven't seen the end of these frustrations.

Mayor Wright - Hal Row - Young Professionals - Boards and Commissions

This is a continuation of the Mayor's interview with Hal Row from March 5, 2012. Part 1 was about Ward Specific Elections. After coming back from the second break Hal talks about the Hickory Young Professionals meeting that took place on February 22, 2012. This meeting entailed " interviewing the young professionals about a topic that has become a key priority and strategy as our county begins to develop a collaborative Competitiveness Plan for the future.  What needs to be done in order to attract and retain young professionals in Catawba County could very well be priority ONE."

Hal attended the meeting, which I think is awesome. Hal gets it. The Mayor never has and never will, because he has the blinders on with a narrow focus on what his personal developed mission was from years ago. To give some perspective, it has been a little over 3 years since I called into Hal's show and brought up the issue of losing our younger demographic. That was the first time this issue was brought to the attention of the area and a couple of months later Taylor Dellinger of the Western Piedmont Council of Governments comes out with data that drastically supports my contention and totally gives it credibility. 

After all of that and three years later, the mayor seems to have given no reassessment or reappraisal to the concerns surrounding this issue. It is all about full steam ahead, even if it means going over a cliff. And remember folks, he is conducting this locomotive and we are going along for the ride.

If you don't understand where I am coming from, then listen to the interview below. 

Hal brings up the issue of nightlife. Young professionals want to work hard and play hard. Hal states that Charlotte is an hour from here, but they work here. They should be able to stay here and spend their money here. The Mayor talks about gleaning ideas from other cities. Then he goes into a diatribe about Greenville not building any bars (or bar strips). They improved corners, mixed use, restaurants...

He talks about being an hour away from Charlotte if you want the concert scene.  "We Cannot Guarantee Concert Profitability." There's a reason why concerts go to Charlotte and Atlanta and places like that. We're not going to be able to land Elton John ...

Hal stated that they have done things in Greenville. The Mayor stated that they have done things to make it ambulatory. People don't want to walk 200 yards.  He says if this is done in Downtown Hickory (Union Square), he will hear from the merchants and everyone about the loss of parking. He talks about spending most of his career in Raleigh and Charlotte and parking 15 minutes away from his office is primo.

Hal asks an excellent question about whether the City Council is "Pro Entertainment" -  Bars and Restaurant. The mayor says they are against people putting up bars who have had past issues or might over serve people. They don't want people coming from hundreds of miles around to Hickory to come to bars, because they are here in Hickory. They have no qualms about neighborhood bars, but they are talking about entertainment venues and nightlife. Hal says it isn't fair to call them bars, because people are looking for a place to go have some fun and dance and mix and mingle.

The Mayor said he was married and had children and a mortgage. He wasn't a young professional long. He talked about penny poker and (backyard get togethers). He stated that he wasn't opposed to (nightlife) or people getting together traveling to underground Atlanta. He talks about our quality of life being different and superior. He talks about Jason Yates (Tap Room) providing a good venue at a reasonable cost.



In the final segment, the Mayor talks about young professionals and others getting involved in Hickory Boards and Commissions. He talks about getting plugged into the City. Think about going to Neighborhood College (Mandy Pitts 323-7412) or Citizen's Police Academy. He talks about the various Boards and Commissions. He says that now is the time to contact the City Clerk (Pam Tallent 323-7409) to get an application in.

The Hound is sorry that he has to address the states of reality and logic. When people have talked about entertainment in the area, they aren't talking about a neighborhood pub to shoot pool or throw darts. We already have that. So coming at it from that perspective is sophomoric. I know that we aren't against bars and clubs, since the Hound was the entity that stood up with resolve against the constrictive nature, intolerance, and arbitrariness that we saw demonstrated by most of the Council during the Drink Establishment Ordinance of 3+ years ago.

The Mayor has been observed not being against issues relating to businesses owned by people he has a connection with and I'll leave it at that.

When talking about concerts, we haven't talked about a 20,000 seat arena. We have talked about a 3,000 to 5,000 seat amphitheater. That should tell you that we are looking at mid tier acts and up and comers. Our metropolitan area is nearly as large as Asheville's and Asheville has many of the amenities that we are looking for and yet the Mayor is telling people to fill their tanks and head 75 miles west or 55 miles to Charlotte or 75 miles to Winston-Salem. When people do that they spend their disposable income in those places.

As Alan Jackson of the Business Development Committee stated tonight, we haven't taken advantage of our location. Why aren't we creating draws to attract people, their money, and their value to this community; which at the same time would be beneficial on a number of fronts to the people that live in this community.

The Mayor states that they can't guarantee concert profitability. Well, No ---- Sherlock. No one who is a true Capitalist or American has asked the City to guarantee anything. The City is only asked to be a facilitator and intermediary of discussions. These people who purport themselves to be Republicans in this area are embarrassing when they tell you about how they are for small government, while they tell you why businesses will fail, stand in the way of free enterprise by picking winners and losers, throwing bones to their buddies, and attempting to micro manage every facet of the community's social dynamic.

Then the Mayor talks about the various Boards and Commissions. The best of those positions are taken by family and friends of the Council, so that they can maintain the control of the output of those entities -- more of that good ole like mindedness. Then there is the fact that they many times go against the recommendations of those entities, if the outcome of their (the board or commission) efforts go against the wishes of the Mayor and the Council.

And let's remind you of what has happened recently when Cliff Moone followed the procedures in a 100% correct fashion and was given the run around because of politics.

Mayor Wright - Hal Row - Ward Specific Elections

Hal Row (First Talk - WHKY AM Radio) received an e-mail yesterday from a man, Jay Collins, who asked some specific questions related to the referendum and asked why the City Council won't put this issue on a ballot? Mr. Collins also sent me the e-mail below and stated that he was sending this to Hal and hoped that Hal would pose this question to the Mayor. Thank You Mr. Collins for asking a very good question and Thank You Hal for posing this question to the mayor.

Hal -

I'm unable to call in during the mayor's visit to the show this morning, but will be listening. I'd like to pose the question below to the mayor for his opinion.

Mr. Mayor

You have been very vocal in your opposition to the petition being circulated which seeks to hold a voter referendum to allow Hickory citizens to decide if the voting system should be changed.

As we know, the system was changed in 1968 after two votes were held within a 48-hour period with only 4 councilmen voting in favor. The vote was essentially a vote to change Hickory's City Charter - our constitution so to speak.

In 1988 a referendum was approved by Council and placed on the ballot for voter approval. The issue was whether the City should sell water to other municipalities. After a fair and spirited public debate, the issue passed.

My question is this - how can an issue such as allowing the City to provide water to other municipalities (at no cost to the City, actually the City makes a decent profit off of water sales), if this issue rises to the level of needing voter approval, how does making a change to the City Charter NOT rise to the same level of importance?

No formal or official citizen input was considered during the process back in 1968 - no public hearings were even held. Again, the issue passed with a 4-3 vote.

Please allow a voter referendum to proceed and give the citizens of Hickory the right to choose - a right they were denied in 1968.

The Hound says that the Mayor speaketh with forked tongue when it comes to this issue. We will give the Mayor the benefit of the doubt on the petition issue, because people have told the Citizens for Equity in Government that they have been asked not to sign the petition. The biggest issues are that the Mayor is saying that Ward representatives under a Ward specific system wouldn't represent other wards. They only represent two wards now -- Ward 1 (Downtown) and Ward 6 (North Hickory along 127). The other wards are left to fend for themselves. He also said that it would lead to cronysism. That is what we have under the present system that has led to Bloc voting, where this city has for years been controlled by two wards, which basically comprises a handful of people and their whims and fancies.


The biggest issue is debate. The City officials don't want issues debated. I like the Mayor's phrase "Heavy Handed," because that is exactly what we have seen. They have manipulated and controlled issues towards their personal desires. They could care less what the public wants, but if you sat down and had a heart-to-heart with the City Council they wouldn't know what they wanted either. That is why they are going to all of these cities to see what they are doing, which isn't a bad thing in and of itself, but they need to start having some ideas of their own, because as another commenter stated, they are our leaders and we elected them to lead and to have ideas. If they can't do that, then they need to get out of the way and let someone else have a shot at being a leader.

There were other parts of this interview relating to Young Professionals and Boards and Commissions that I found very perplexing. I will address those very soon, but for now I am headed to this Entrepreneurial event. And this should be very interesting. 

*  In the original submission I stated ward 4. I meant Ward 6. It is obvious that Ward 4 (South and Southwest Hickory) have not been represented that is the reason that they have fallen in such disrepair.


* The Mayor stated that the direct ward system leads to cronyism. That is what we presently have with the bloc voting related to the modified at-large system.  This current council makes deals. If you are from Ward 4 and you don't do what I want, then I'm going to work to ensure that my constituents end your tenure on Council, because my bloc (from North Hickory) is going to vote you out.

* The Mayor doesn't want a vote, because a vote most likely leads to a change in the system. The Mayor seems to think that he knows best and that the citizens aren't smart enough to understand what is best for them. The Mayor seems to confuse the "Right Way" with the "Wright Way."

1961 -- A lesson in Hickory's History 

1967 - How we got where we are today

The History of At-Large voting in Hickory - The HDR articles and Council Minutes Documents

 Hal Row's First Talk - CEG discussion about Ward Specific Voting - The Interview
 

Help Bring Fair Representation Back to the City of Hickory

Recovery, Recession or Depression?

The following is a questionnaire relating to our present economic circumstances as published through Bob Chapman's International Forecaster by Wendy of Discount Gold & Silver Trading Co. I won't tell you what to think. Just read the information and see what you think.

The New York Times reports ("President Officers Theme of Nation Seeing Comeback") that,   "President Obama has a new message: America has gotten its groove back. Mr. Obama has seized on a narrative of national optimism in recent weeks, offering a portrait of a country that, guided by him  and powered by the American worker, is making a comeback.

"In his State of the Union address in January, President Obama declared, ‘‘anyone who tells you that America is in decline or that our influence has waned, doesn't know what they're talking about. America is back.'"

Obama's optimism is encouraging, but is it based on truth? Is America really “back"?

Is the American economy in a state of: 1) recovery (as Obama claims); 2) continuing recession; or 3) an economic depression?

You decide:
Last month, the AP reported, "Gasoline prices are highest ever for this time of year. At $3.53 a gallon, prices are already up 25 cents since Jan. 1. And experts say they could reach a record $4.25 a gallon by late April. Reuters reported that, "Iran has stopped selling crude to British and French companies in a retaliatory measure against fresh EU sanctions on the Islamic state's lifeblood, oil." The EU must now seek another source for the 700,000 barrels a day it's previously bought from Iran. The result should be an increase in the price of crude oil and gasoline. If Iran degenerates into a shooting war, the price of gasoline should go even higher. A recent headline from CNBC warned, "Get Ready for $5 Gas This Year: Ex-Shell CEO." Subsequent reports have predicted $6 gas as possible. It's generally agreed that gasoline prices above $4/gallon will precipitate serious public reactions. People will cut driving to a minimum. The less people drive, the less they’ll buy. As they drive less and buy less, total demand for goods and services tends to fall.

Is rising energy costs evidence (please check one) of:

___ Recovery ___ Recession ___ Depression?

We already see reductions in commercial driving. The Ceridian Fuel Index tracks the consumption of diesel fuel by US truckers and is believed to be a leading indicator for the economy. When that Index rises, the economy typically heats up. When the Index falls, the economy declines. According to the Ceridian Fuel Index, truckers are using 2.2% less fuel than they did one year ago. Most of that fall (1.7%) has occurred since last December. This suggests that US economic decline has recently accelerated.

Is the fall in the Ceridian Fuel Index evidence (please check one) of:

___ Recovery ___ Recession ___ Depression?

The Baltic Dry Index is a shipping and trade index created by the London-based “Baltic Exchange”. This index measures changes in the cost to transport raw materials such as metals, grains and fossil fuels by sea. When the global economy is booming, the demand and cost for shipping increase. When the global economy is slowing, the demand and cost for shipping decline.

The Baltic Dry Index currently indicates that global shipping is slowing dramatically—much as it did in A.D. 2008 before that year's economic "crash". On February 3rd, the Baltic Dry Index fell to its lowest point in 25 years.

Some economists excuse this decline by claiming there are too many ships and competition is so fierce that shipping costs are being cut. But, in conjunction with other indications that the EU's GDP is declining, it appears that we may be witnessing a "double dip" in the global recession, and perhaps even the onset of a global depression.

According to the UK Telegraph, Asian shipping is also down: "Shanghai shipping volumes contracted sharply in January as Europe's debt crisis curbed demand for Asian goods, stoking fresh doubts about the strength of the Chinese economy. . . . Container traffic through the Port of Shanghai in January fell by more than a million tons from a year earlier."

Are the current declines in the Baltic Dry Index and also in Asian shipping evidence that the global economy is in a state of (please check one):

___ Recovery ___ Recession ___ Depression?

Wherever you look, global economic activity appears to be slowing. The UK and German economies both shrank in the last quarter of 2011. CBS News reports that German industrial production fell 2.9% in December from the month before. Whether this sudden decline is merely an aberration or evidence of things to come remains to be seen. But, given that Germany is the principle industrial force in the Europe, this decline suggests that Europe is heading into a recession.

Bloomberg reports that "Irish home loans in arrears for more than 90 days rose to 9.2 percent at the end of last year from 8.1 percent at the end of the third quarter. A total of 107,708 home mortgages, or 14 percent of the total, were either 90 days in arrears or had been restructured." We can anticipate falling Irish home prices, more Irish foreclosures, loss of capital and less money available as credit for Irish consumers and businesses. Less available credit implies further economic decline.

For Spain, Bloomberg reports, "Lending fell by 3.3 percent in December from a year before, the biggest drop since Bank of Spain records started half a century ago. Bad loans as a proportion of total loans rose to 7.61 percent from 7.52 percent in November as borrowing considered "doubtful" jumped from about 11 billion Euros five years ago, before Spain's property crash, to 136 billion Euros today. . . . The prospect of a protracted recession in Spain is curbing the appetite for loans and making banks more cautious about lending. The economy may shrink 1.5 percent this year while unemployment stands at 23 percent. Exane BNP Paribas predicts an economic contraction could stretch through 2013."

Recent European car sales have generally fallen—in some countries, dramatically: Portugal, down 47%; France, down 21%; Italy down 17%; Belgium, down 16%; Cyprus, down 17%, Greece, down 13%; even Germany, down 0.4%.

Are current declines in European economic activity evidence that the global economy is in a state of (please check one):

___ Recovery ___ Recession ___ Depression?

If European and/or global economic activity are in a state of decline, is that decline likely to affect the US economy? If so, are declines in European or global economic output more likely to cause the US economy to go into a state of (please check one):

___ Recovery ___ Recession ___ Depression?

The U.S. has the world’s highest percentage of women taking antidepressants. American kids are three times more likely to be prescribed antidepressants than European children. Millions of young Americans can’t find jobs once they finish school. More than 30% of those between ages 18 and 34 continue to live at home and remain financially dependent on their parents. As financial dependents, these youths can’t buy new cars or new homes, and the economy tends to slow.

The weight of economic stress is changing the American people’s demeanor. As economic pressures build, desperate people increasingly resort to violence to survive. Violent crime in Washington D.C. is up 40%. Last year In Detroit, justifiable homicide rose by 79% and self defense killings are now 2200% above the national average. Nationally, gang membership has risen by 40% since A.D. 2009.

Does this evidence of growing psychological stress indicate that the US is in (please check one):

___ Recovery ___ Recession ___ Depression?

Today, about 300 American municipalities are in default on their debt. As a result, municipal government employment and services (including police and fire departments) have often been reduced. In extreme cases, some municipalities have nearly broken down.

For example, Alabama’s Jefferson County (pop. 658,000)—which includes the city of  Birmingham—went bankrupt last fall. The county is drowning under $4 billion in debt, the legacy of a big sewer project and corrupt financial dealings that sent 17 people to prison. The County’s lawyers are negotiating with roughly 4,000 creditors from suppliers to hedge funds. After New York City ran  into financial trouble in the ’70s, and Cleveland fell into a hole in the ’80s, the federal bankruptcy code was changed to ensure that certain types of muni-bonds would keep paying interest and principal even if the issuing government authority sought bankruptcy.

OK—we have laws that require municipalities like Jefferson County to make good on at least some kinds of municipal bonds—even if they’ve filed for bankruptcy. But you can’t squeeze blood out of a stone. How will those laws be enforced if the County is truly broke? Can Alabama or the feds raise taxes on a county that’s bankrupt and arguably already in a state of economic depression, and still expect to see increased funding for existing debt? Isn’t it generally true that, no matter what the bankruptcy laws say, the municipal bonds issued by Jefferson County and other bankrupt municipalities will at least lose some value as those insolvent municipalities struggle to survive? As the municipal bonds of insolvent communities lose value, creditors will lose assets needed to make credit available to the public and businesses.

 Is the loss of value of at least some municipal bonds evidence that the US is in a state of (please check one):

___ Recovery ___ Recession ___ Depression?

According to Bloomberg, December home prices in 20 U.S. cities declined another 4% to the lowest level since the housing crisis began in mid-2006. Foreclosed properties returning to the market mean prices will stay depressed, prompting buyers to wait for cheaper bargains. While people wait to buy, the demand for new homes falls. Falling demand tends to push home prices even lower. Lower prices tend to make people wait even longer . . . .

A graph on page 102 of the White House’s recent Economic Report of the President indicates that during the Great Depression, housing prices across the nation fell an average of 10%. During the A.D. 1990 California housing crash, California prices fell an average of 25%. During the Boston housing crash in A.D. 1989, Boston home prices fell an average of 33%. And in our current “Great Recession,” housing prices on a national level have (so far) fallen by 40%—roughly four times the price decline of the Great Depression.

Is the current decline in American home prices evidence that the US is in a state of (please check one):

___ Recovery ___ Recession ___ Depression?

The holdings of US T-Bonds by Russia and China are falling. Russia has dumped US Treasuries for 14 consecutive months from $176 billion in October, A.D. 2010 to $88 billion today. China has slashed its holdings since last summer. In December alone, China dumped $32 billion in US T-bonds. The volume of this dumping process is unprecedented.

Bilateral trade agreements between Iran and India, China and Japan are being consummated in terms of each treaty-members’ own currencies or even gold—but without the intervention of US dollars.

As nations become less willing to purchase US Bonds, and begin to transact commerce without the intervention of US dollars, the dollar’s status as “world reserve currency” is diminished and increasingly tenuous.

Is the diminishing status of the US dollar as “world reserve currency” evidence that the US is in (please check one):

___ Recovery ___ Recession ___ Depression?

The Federal Reserve is increasingly isolated as the primary purchaser of US bonds. Suppose I was the only one who would cash my own checks. What would that tell you about my solvency and value of my checks?

The US/Federal Reserve is not yet the only entity that will figuratively cash "US checks" (actually, buy US bonds)—but the trend is pointing in that direction. What does that imply about the US's solvency and value of its bonds? Insofar as the US government relies on loans from foreign creditors to enable at least some deficit spending, and insofar as the world is increasingly reluctant to buy US bonds, is that evidence that the US is in (please check one):

___ Recovery ___ Recession ___ Depression?

The New York Post reports in “Credit Card Debt Nears Toxic Levels” that, “More American households are falling back into the debt hole, this time without the safety net of home values to help bail them out. Last year, total US consumer debt reached its highest point in a decade . . . . In December 2011, the total consumer debt rose by some 9.3 percent to $2.498 trillion . . . . The trend—month-to-month, quarter-to-quarter and year-to-year—is rising steeply. “These numbers . . . mean that many middle-class Americans are taking big risks. In a weak economy with high unemployment, many people with big card balances become vulnerable to financial catastrophe.”

Is an increase in credit card debt evidence that the US is in (please check one):

___ Recovery ___ Recession ___ Depression?

So, add them up. How many times did you check off “Recovery”? How many times, “Recession”? How many times did you dare check off the D-word (“Depression”)? Where do you think the US economy is? Where do you think it’s heading? Do you agree with President Obama’s merry optimism that “America is back” and we’re in a state of Recovery? Or, do you believe we are still in Recession or perhaps even in Depression?

And for extra credit,” here’s one last question: Come November, will President Obama be (please check one):

___ Reelected ___ Voted Out ___ Impeached?