I really don't see how anyone can get excited about the upcoming Presidential election. I am not going to speak for others, but speaking for myself, if I decide to vote for a candidate it will be to vote against the other guy and not to support someone.
I do support healthcare reform, but not what has come to be known as Obamacare. I do not support the unfunded mandate. I don't believe in penalizing people for not buying something they can't afford. I don't support businesses being involved in their employees' healthcare plan. We need to totally rethink how healthcare is financed and delivered in this country. Wrapping it up in a nice little bow for corporate interests is not the solution. It will create a major fiasco.
Why do I support healthcare reform. I have seen so many middle class people basically ruined by the current system. They cannot afford the system. I know that healthcare professionals, for the most part, don't want to hear that, but it is rooted in fact. If you are earning $20,000 to $30,000 per year, most people cannot afford $100,000 bills when they don't have health insurance and when they do have insurance what good is it when they have their coverage dropped after having a catastrophic issue. I know three people who are currently in this boat and another who is only not there because they now qualify for medicare.
Then there is the energy issue. It is an and/both issue. We need to continue to seek out alternatives, but we have to build a bridge to that future with what we have today. This nation has cut back on foreign imports over the last four years, but much of that has been attributable to the Economic Depression.
I don't see a compromise coming from the two party system. One lives in a fantasy land of "Alternatives today" and the other believe in "Alternatives will never happen." Yes they will never happen if we don't strive to make them happen and if you think magical fairy dust will make them happen, then you are defeating the cause before you even get started. We need compromise on this issue.
Then there is our current military projection. What is the plan? What is the end game? Obama comes into office and we are in worse shape on this front. Romney seems to want to go foot to the floor board in the Middle East. We can't afford this and check out the above petroleum issue and see where those issues are closely tied. We are spending hundreds of millions of dollars on this military projection and it is obvious that we aren't seeing a return on our investment and it doesn't look like we will see one any time in the future under current guidance.
Then there is the Domestic Security apparatus. "Homeland Security" has projected itself into every facet of our lives in less than a decade. Does this make you feel safer? Does it not make you fear government authority more? And once again, what about the costs? What is the price on our privacy and liberty? You can't place a monetary value on that, but you certainly can on the technology that is being used to administer this tyrannical apparatus! And look at where the candidates stand on this issue. Four years from now do you believe it will be more or less cumbersome under the direction we are headed?
Neither one of these men can relate to the average citizen. Neither support Federal Reserve reform. Neither support reining in Free for All trade. Neither are looking at substantial cuts in the size of the government. Neither wants to tax the Super Wealthy. Neither has proposed rethinking the current tax system. Both seem to be looking towards more International participation in Governance over our national interests and sovereignty.
We have two parties, but on issues that matter we have one system. Everyone's still participating in World Wrestling Politics and the event is sold out. Too bad the American people won't wake up or do they even have a choice. Does it even matter? Are we too far down the path with our fate already decided? What is your soul, your inner being, telling you? I know what mine is telling me.
It is plain as day to see that we have been in a crisis for a long time. The Politicos keep buying time with their Ponzi Economy. Sometimes all of this is very overwhelming because we keep being attacked on every level of our lives.
There is a purpose behind my Sunday links entitled "Economic Stories of Relevance." Last week I had a comment that I was a cut and paste king with no original thought. My mother has something she always says that cuts to the chase, about subterfuge - WHATEVER!
There is a weekly connection to those economically relevant links that point to patterns and attempt to educate and reenforce the issues we face. They aren't thrown up there willy-nilly. It is up to you to see the pattern and I think the patterns are obvious. We are being lied to about many aspects of the economy through propagandized information (spin) by the press in conjunction with government incorporated. It is up to people to read between the lines to understand current realities; but many are too busy, while others are too brainwashed, to see this.
Now I know why this person has posted negative comments about what I have said about local governance. It is a petty issue that this person has a friendly association with the local government and the local Republican Party and they can't stand that I am looking to shake up the status quo and this person is fully entrenched in hanging on to the coattails of the local Republican party.
Hey, the comments made by this person are fully their right to make. I do agree that I don't participate in the manner that this person does. As it is this person's right to chastise me for not participating in their system, it is my right not to participate in their system. But, people "in the know" know that I participate more than all but a handful of the people in this community.
Those of us who have aims to shake up the status quo are many times labeled as radicals or trouble makers by the establishment, but in the end the radicals are the people who deflect accountability, obfuscate issues, and seek to keep information out of the public eye in the name of maintaining power and the status quo. These people are as much in the minority as I am. They just don't realize it.
Larry Pope has been one of those individuals that has been labeled negatively by the local Powers That Be. He went to Hickory Inc. with his concerns about the Housing authority and they shut him down. Seems like after reading the article in the Hickory Daily Record on Sunday that his concerns were justified and Hickory Inc. unjustifiably shut down a whistle blower.
We read about the abuse of whistle blowers all the time in National Publications and most of the public in our area seems to be under a delusion that things like that don't happen in Hickory. Make no mistake that this is a serious issue and we have seen several issues along these lines spin out of control over the last several years. There is a common thread there.
How can the public continue to ignore these issues, one right after the other, that hit so close to home? How can the public allow issues of poor management to continue with no accountability towards process.
The characterization of the quintessential used car salesmen is, "Let's get you in the car today and we'll worry about that other stuff tomorrow." By the time the issues arise it is too late. We need to know costs up front. We need to know and understand the issues and concerns we are facing. We need a plan to attack issues and not people. We need to be able to look the people who are leading us in the eye and know that they have control of the reins to lead us somewhere, not nowhere.
I am told that we don't need to worry about these impediments; that we need to go around them. We need to do both. We will most certainly attempt to go around the impediments; but if time is money and money is time and the closest path between two points is a straight line, then it is obvious that the sooner we remove obstacles the better off we are going to be.
(If you don't agree with this context and would like specific quotes about the parameters of this article, then you provide a relevant comment and we will discuss this further in the comments section.)
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 6/5/2012 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. Dale Sneed, Pastor, Hartzell Memorial and McQueens Chapel United Methodist Churches
Special Presentations:
A. Presentation By Dr. Dave Hamilton and Dr. William Litaker Regarding Missions of Mercy, a Free Dental Clinic to be held on July 27 and 28, 2012 at the Hickory Metro Convention Center.
B. Presentation of the Distinguished Budget Presentation Award for the Fiscal Year Beginning July 1, 2011. This is the seventeenth consecutive year the City Has received this recognition.
C. Presentation by Communications Department Staff of a video showcasing the ribbon cutting and opening day of the Zahra Baker All Children’s Playground at Kiwanis Park
Consent Agenda
A. Resolution – Cancellation of July 3, 2012 City Council Meeting Be it resolved by the City Council of the City of Hickory that the regularly scheduled City Council Meeting for July 3, 2012 be cancelled due to the annual tradition of canceling the first City Council Meeting in July because of the possibility of not having a quorum of Council as a result of the July 4th holiday and vacations. (This meeting in July has traditionally been cancelled by the City Council.)
B. Proclamation Recognizing Hickory Crawdads Manager Bill Richardson for Becoming the All-Time Winning Manager in Hickory Crawdads History
C. Proclamation Recognizing National HIV Testing Day on June 27, 2012
D. Request From Hickory Jaycees for Use of City Hall Parking Lot for Hickory Alive on June 1, 8, 15, 22 and 29 from 6:00 p.m. – 10:00 p.m.
The Hound is glad to see Hickory Inc. saw that they were off base and backed off where they were headed with this issue. The two articles below are a reminder of where we were at last year when it comes to this issue. There are still people that would put an end to this event if the opportunity arises. Those who think this issue has been permanently solved are mistaken. Events like Hickory Alive are important to this area and should not be taken for granted.
E. Request From Catawba Valley Pride Inc. for Use of L. P. Frans Stadium for Catawba Valley Pride Celebration to be held on Saturday, September 29, 2012 from 10:00 a.m. to 4:00 p.m.
F. Request For Funding By Community Relations Council (CRC) – Spring 2012 Grant Recommendations in the Amount of $6,000.00 - As part of the Community Relations Council work plan and annual budget process, the CRC receives funds to disperse during the fiscal year through the CRC grant process. Non-profit agencies working with diverse populations in Hickory are eligible for grant funding. The grant proposal must show how the program under consideration fits into the CRC goals and mission and how the program will serve to improve human relations in the Hickory area. A total of $12,000.00 is available for grant funding in FY 2011-12. For the spring grant cycle, the CRC received grant requests totaling $15,834.80. The CRC reviewed the applications and recommends funding on five (5) of the grant requests received:
1. Outright Youth of Catawba Valley 1,500.00
2. Exodus Homes 984.80
3. Dr. Neal Gray – Diabetes Support Group 1,015.20
4. Girls on the Run of Catawba Valley 1,000.00
5. Restored Generation Inc. 1,500.00
Total $6,000.00
G. Resolution Accepting the Offer of Dedication by Habitat For Humanity of Catawba Valley of Lands and Improvements as Shown in Plat Book 71 at Page 135 of the Catawba County Registry on 5th Avenue SW - This request is for consideration of a resolution accepting an offer of dedication of street right-of-way by Habitat for Humanity of Catawba Valley, which involves a newlyconstructed segment of 5th Avenue SW. Habitat For Humanity of Catawba Valley recently completed what was known as the Green Park Subdivision in southwest Hickory. Upon completion of new subdivisions, the plat will contain an offer of dedication for areas deemed public. The offer of dedication stands as the owner’s intention to transfer the area shown from private ownership to public ownership; however, NCGS §160A-374 stipulates that the offer can only be accepted by resolution of City Council. Staff recommends approval.
H. Request for Approval to Purchase Approximately 0.7 Acres of Property Adjacent to the Northeast WWTP from Clay H. and Jennifer Gosnell Located on 1st Street Place, NE in the Amount of $30,500.00, with Estimated Closing Costs of $3,000.00 – The Public Utilities Department Staff was approached by Clay and Jennifer Gosnell, the property owners, about purchasing this property which is located adjacent to the Northeast WWTP. The 0.7-acre property is immediately south of the existing WWTP property on the western end and would provide a beneficial buffer area between the facility and the adjacent community. The property could also be beneficial as the future site of a water resources education building. Purchase of the property will be paid from the Northeast WWTP Upgrade Project Contingency Fund. Staff recommends approval.
I. Tax Refund, as Recommended by Catawba County Tax Office, to Moore’s Ferry Associates, LLC in the Amount of $610.44 - Due to an error in land pricing amount and incorrect allocation between the City of Hickory and the Hickory Rural Fire District for property located at 4331 North Center Street, Moore’s Ferry was subsequently billed for an additional value of $122,087.00 for the City. The error was corrected for the 2012 bill. Moore’s Ferry Associates LLC is requesting a refund for tax year 2011 for overpayment. This has been verified by the Tax Collector’s Office. Staff recommends approval.
J. Resolution Declaring Surplus 1,440 Library Books and Authorizing Materials be Given to Friends of the Library for Their Fourth Saturday Book Sales – January – June, 2012 - The Friends of the Library collected donated books and other materials throughout the year for their book sales, the proceeds providing funds for library programming and other special activities. For many years, the library has given Friends of the Library materials that have been removed from the collection because they are out of date, in poor condition, or no longer needed to meet the collection development goals of the library. There are 1,440 discarded library materials to be donated. Staff recommends approval.
K. Amendment to Lease Agreement with Hickory Christian Academy to Allow for the Lease of Additional Classroom Space at Neill W. Clark Jr. Recreation Park - Hickory Christian Academy (HCA) is located adjacent to Neill W. Clark, Jr. Recreation Park. Due to school facility constraints, representatives of HCA approached the City Staff about the possibility of leasing facility space beginning with the 2011-2012 school year, and a lease agreement was signed on August 16, 2011 leasing three classroom spaces and an office/conference room for a total of 1,851 square feet. The first amendment to the lease provides for: (1) The City agrees to lease an additional room (No. 13), which totals 508 square feet, at a rate of $1.00 per square foot per month. Effective July 1, 2012, the monthly lease payment increases from $1,851.00 to $2,359.00; (2) HCA will also be allowed to use the common mall area for lunch provided a written request is provided seven days prior to the requested use. Should unexpected weather conditions occur, a request may be submitted without the seven day notice requirement. All previously scheduled events in this area will take precedent over any use request by HCA. (3) The lease amendment also provides for the issuance of additional facility keys. Leasing of the additional classroom space will have no adverse affect on any current or future programs offered and conducted by the Parks and Recreation Department. Staff recommends approval of the first amendment to the lease agreement.
L. Write Offs for Fiscal Year 2011-2012 in the Amount $198,299.15 (FY 2011) and $234,986.84(FY 2012) - North Carolina General Statutes establish all Street Assessments and Property Taxes that are over ten (10) years old are no longer collectable and should be written off in conjunction with the annual audit. For the current fiscal year (FY 11-12), there are no Street Assessments to be written off, but there is $127,119.28 in Property Taxes. The City of Hickory’s Accounting Division requires all other accounts that are over eighteen (18) months in arrears be written off to comply with Generally Accepted Accounting Principles in order to more fairly represent financial assets of the City on the balance sheet. For the current fiscal year, this amounts to $107,867.56. Current fiscal year writeoffs total $234,986.84, compared to $198,299.15 for FY 10-11. Even though these accounts will be written off, the Finance Division will continue to pursue collection of the debts. All accounts over $50.00 that are eligible are submitted to the North Carolina Debt Setoff Program for collection. Staff recommends approval to write-off uncollectable
accounts for Fiscal Year 2011-2012.
M. Request from Grace Chapel Fire Department in Caldwell County for Transfer from City of Hickory of a Surplus Radio Tower Frame Currently Stored at Fire Station No. 7 for Public Safety Radio Communication Use - During 2003-04, the City demolished the former police department and city jail building that was located on 1st Street NE. During the demolition phase, a radio tower was removed from the side of the building and moved to Fire Station No. 7 for storage. Since that time, there has been no designated use of the radio tower frame. The Grace Chapel Fire Dept. is currently building a new fire station in Caldwell County and has a need for a radio tower for fire and rescue radio communications. Staff recommends approval.
N. Budget Ordinance Amendment No. 24 1. To budget a $50 Library donation (Shirley and Ralph Cunningham) in the LibraryBooks line item. 2. To budget a total of $606 ($100-Quest Book Club and $506-Ridgeview High School Class of 1962) Library donations. 3. To transfer $9,000 from the Street Division Construction line item to the Stormwater Fund Departmental Supplies. This transfer is necessary to provide funds in the Stormwater budget to purchase construction materials needed for storm drain related projects. 4. To budget $1,215 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 scrap metal from surplus Engine 14. 5. To budget a $2,000 donation from the Kiwanis Foundation in the Parks and Recreation Maintenance and Repair of Grounds line item. This donation is for landscaping at the Zahra Baker All Children’s Playground at Kiwanis Park. 6. To budget a $300 donation in the Parks and Recreation Departmental Supplies line item. This donation is for the Zahra Baker Community Build. 7. To budget $140 of Parks and Recreation Special Activities Revenue in the Recreation Supplies line item. These funds are designated for Lacrosse supplies (uniforms). 8. To budget $2,460 of Parks and Recreation revenue in the Parks and Recreation Special Events line item. These funds are for the June SOAP (Summer Outdoor Adventure Program) offered by the Parks and Recreation Department. 9. To budget $7,633 of Parks and Recreation revenue in the Parks and Recreation Special Events line item. These funds are for the Senior Games. 10. To appropriate $9,400 of Miscellaneous TDA revenue and to transfer an additional $4,821 of Contingency to the Finance Departments Banking Services line item. These funds are necessary to cover the refinancing fees for the General Fund debts which was paid for out of the Finance Department’s
operational budget. 11. To budget $285,000 of additional Hotel/Motel Occupancy Tax revenues for FY11-12. Per State statute Hotel/Motel Occupancy Tax revenues are collected by the City and remitted directly to the Hickory-Conover Tourism Development Authority. 12. To appropriate $22,474 of Insurance Fund Balance (General Liability) to the FBO (Fixed Base Operations) Other Professional Services line item for legal expenses related to the FBO Bankruptcy. 13. To transfer $263,500 ($162,500 General Fund, $98,000 Solid Waste Fund, $3,000 Transportation Fund) of designated Fuel Reserve funds to several departments fuel and motor oil operational line items. This transfer is necessary to cover the projected overages in fuel costs in the current fiscal year. These funds are a portion of the $1 million previously set aside by City Council to meet the rising cost of fuel. Any remaining funds at year end will be transferred back to the Fuel Reserve for future needs. 14. To transfer $10,553 of Appropriated Transportation Fund Balance to several Airport operational line items. This amendment is necessary to complete the fiscal year.
New Business - Public Hearings
1. City Manager’s Recommended Fiscal Year 2012-2013 Budget Ordinance - Pursuant to NC General Statutes §159-12(b), a public hearing shall be held before adopting the budget ordinance. This public hearing was advertised in a newspaper having general circulation in the Hickory area on May 17, 2012. Copies of the budget ordinance were filed for public inspection in the Office of the City Clerk, Patrick Beaver Memorial Library and Ridgeview Library. The recommended budget is also posted on the City’s web page, www.hickorync.gov. Pursuant to NC General Statutes §159-13(a), the City Council is required to adopt a balanced budget before July 1, making the appropriations and levying taxes for the budget year. The City Manager recommends adoption of the attached budget ordinance for Fiscal Year 2012-13.
Recognition of Persons Requesting To Be Heard Martha Boston, 123 10th Avenue SE, requests to speak to Council regarding: 1. Code enforcement and slumlords; and 2. Ridgeview Library. - Ms. Boston prefers the name Blitzie. The matter concerns Slumlords throughout the city. She spoke about issues surrounding her house.... people in and out... neighbors with stolen cars. There are issues with trees on other properties and their limbs overhanging and damaging her property. The roots from the trees have torn up her driveway. The bottom line is that nothing had been done for seven years until Code Enforcement got involved three months ago. She believes that we need more code enforcers, because they can't possibly oversee all of the slumlords that don't live in the area. A fence has been placed on her property and she will have to pay money to have it removed. She has been advised that she will have to go to small claims court to get the tree issue resolved. She commended the police for doing a good job. She talked about that kids in the Ridgeview are having kids and the police shouldn't be expected to take care of the kids. She said she believes the City Council has done as much as they can at this time, but believes that the Council should be more visible in Ridgeview. She next spoke about the Ridgeview Library and thanked former City manager McGee and Alderman Lyerly for saving the old library. She talked about how Hickory ois more diversified now and saving this building benefits the entire community. She was informed that the old library will be used as a museum. She would like for it also to be used as a resource. The building has been placed on the national Registry. She thanked Interfaith Board members. She did state that she hasn't heard much from Interfaith (Morningstar Baptist Church and Friendship Church are the board members) in Ridgeviews. She stated that preachers come and go, but the Church will always be there.
Alderman Guess talked about a policy on slumlord properties in Charlotte. He would like to take a look at what Charlotte has done with Rental Properties. Alder Patton stated that they have expanded there policy to all Rental properties. Alder Fox stated that the article was in the Charlotte Observer. Alderman Guess stated that this continues to be an issue.
General Comments: The Mayor did a very good thing when he asked that staff look to help kids in need attend the Swimming program sponsored by the City at the YMCA this summer, He stated that he would like to see this done without a stigma attached.
The Hound believes that the Mayor deserves kudos for this initiative. The Mayor should be commended for making an effort, but we still believe that we need a community pool in Hickory and the Y should not be the community pool.
Alder Patton spoke about the Hickory Community Theater and events at the Library in citing all of the things there are to do in Hickory. The Mayor added Swinging Under the Stars and Hickory Alive as successful events.
Help wanted – China struggles to fill jobs - Financial Times of London - By Simon Rabinovitch in Beijing and Rahul Jacob in Guangzhou - June 8, 2012 - High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. At the Tiger Lane Bridge recruitment centre in Beijing, a handful of men scan a board plastered with job ads. Waiters, cooks, teachers, security guards, welders, telephone operators and drivers are all in demand. But the job seekers, – who are outnumbered roughly ten-to-one by the positions advertised – are in no great rush. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. The Chinese economy has been slowing – data due this weekend are expected to reveal that exports, investment and industrial production were all weak in May – but the labour market remains very tight.
From Beijing in north China to the southern manufacturing province of Guangdong, the main concern of workers is not finding jobs, but securing higher pay. In fact, companies say they are struggling to find and retain staff. For the government, this is a significant argument against launching large-scale economic stimulus, as there is no need for a major spending boost to create jobs. The central bank’s move to cut interest rates this week shows that Beijing is worried about slowing growth. But officials stress that there will no repeat of the massive stimulus package unveiled in late 2008 during the global financial crisis. While Europe and the US struggle with rising unemployment, China’s labour problem is the opposite: it experienced a record shortfall of workers in the first quarter. The human resources ministry says that for every 108 employees sought by companies, only 100 people were looking for jobs – equating to a nationwide deficit of nearly 1m workers. The reason China’s job market is tightening when the economy is slowing is simple: demographics. The government introduced its one-child policy just over three decades ago to limit explosive population growth. Since then birth rates have declined steadily, with the proportion of the working-age population expanding at a slower rate in recent years. UBS estimates that China’s workforce will peak in about 2015, and then start to shrink.
Former Pentagon Analyst Says China Can Shut Down All The Telecom Gear It Sold To The US F. Michael Maloof, G2 Bulletin - Jun. 8, 2012 - Chinese companies apparently have a covert capability to remotely access communications technology sold to the United States and other Western countries and could "disable a country's telecommunications infrastructure before a military engagement," according to former and current intelligence sources. The Chinese also have the ability to exploit networks "to enable China to continue to steal technology and trade secrets," according to the open source intelligence company Lignet, which is comprised of former U.S. intelligence analysts. The issue centers on the Chinese firm Huawei Technologies Co. Ltd., which U.S. intelligence sources say has direct links to the Chinese government and the People's Liberation Army, or PLA. These sources assert that Huawei and other Chinese telecommunications firms such as ZTE Corp. have "electronic backdoors" to telecommunications technology sold to the U.S. and other countries. Revelation of China's electronic backdoor capability into U.S. and Western telecommunications networks comes on the heels of recent WND/G2Bulletin revelations that China has been manufacturing counterfeit components that have made their way into sensitive U.S. weapons systems. The problem of fake Chinese electronic components, which were installed by defense contractors without prior testing and are operating in U.S. military systems, is far more widespread than originally thought. These parts don't just come directly from China but also from suppliers in Britain and Canada who redirect Chinese products to U.S. defense contractors. These counterfeit components have been found in sensitive U.S. missile systems meant to thwart the potential of a Chinese missile attack, in night vision devices and in various military aircraft. "We do not want a $12 million defense interceptor's reliability compromised by a $2 counterfeit part," Gen. Patrick O'Reilly, director of the U.S. Missile Defense Agency said. Huawei, suspected of exploiting electronic telecommunications backdoors, continues to sell communications technology in the U.S. and other countries despite a supposed ban on the company that was supposed to keep it from bidding on cellular networks and government contracts, a current intelligence source said. The electronic backdoor capability reportedly could allow the Chinese government through Huawei and ZTE to accessinformation traveling through telecommunications networks or even sabotage electronic devices, Lignet said. With this capability, China would be in a position to sabotage critical U.S. weapons systems and sensitive cyber sites and could include intelligence or systems used by defense contractors doing work on behalf of the U.S. government.
Collapse At Hand - Paul Craig Roberts - June 5, 2012 - ... Eventually, inflation would erode the dollar’s purchasing power and use as the reserve currency, and the US government’s credit worthiness would waste away. However, the Fed, the politicians, and the financial gangsters would prefer a crisis later rather than sooner. Passing the sinking ship on to the next watch is preferable to going down with the ship oneself. As long as interest rate swaps can be used to boost Treasury bond prices, and as long as naked shorts of bullion can be used to keep silver and gold from rising in price, the false image of the US as a safe haven for investors can be perpetuated. However, the $230,000,000,000,000 in derivative bets by US banks might bring its own surprises. JPMorgan Chase has had to admit that its recently announced derivative loss of $2 billion is more than that. How much more remains to be seen. According to the Comptroller of the Currency http://www.occ.treas.gov/topics/capital-markets/financial-markets/trading/derivatives/dq411.pdf the five largest banks hold 95.7% of all derivatives. The five banks holding $226 trillion in derivative bets are highly leveraged gamblers. For example, JPMorgan Chase has total assets of $1.8 trillion but holds $70 trillion in derivative bets, a ratio of $39 in derivative bets for every dollar of assets. Such a bank doesn’t have to lose very many bets before it is busted. Assets, of course, are not risk-based capital. According to the Comptroller of the Currency report, as of December 31, 2011, JPMorgan Chase held $70.2 trillion in derivatives and only $136 billion in risk-based capital. In other words, the bank’s derivative bets are 516 times larger than the capital that covers the bets. It is difficult to imagine a more reckless and unstable position for a bank to place itself in, but Goldman Sachs takes the cake. That bank’s $44 trillion in derivative bets is covered by only $19 billion in risk-based capital, resulting in bets 2,295 times larger than the capital that covers them. Bets on interest rates comprise 81% of all derivatives. These are the derivatives that support high US Treasury bond prices despite massive increases in US debt and its monetization. US banks’ derivative bets of $230 trillion, concentrated in five banks, are 15.3 times larger than the US GDP. A failed political system that allows unregulated banks to place uncovered bets 15 times larger than the US economy is a system that is headed for catastrophic failure. As the word spreads of the fantastic lack of judgment in the American political and financial systems, the catastrophe in waiting will become a reality. Everyone wants a solution, so I will provide one. The US government should simply cancel the $230 trillion in derivative bets, declaring them null and void. As no real assets are involved, merely gambling on notional values, the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would be to take $230 trillion of leveraged risk out of the financial system. The financial gangsters who want to continue enjoying betting gains while the public underwrites their losses would scream and yell about the sanctity of contracts. However, a government that can murder its own citizens or throw them into dungeons without due process can abolish all the contracts it wants in the name of national security. And most certainly, unlike the war on terror, purging the financial system of the gambling derivatives would vastly improve national security.
CEOs Losing Optimism as Job Slowdown Imperils U.S. Growth - Bloomberg - Chris Burritt - Jun 8, 2012 - U.S. chief executive officers are turning more pessimistic about a second-half recovery as rising unemployment and Europe’s debt turmoil threaten domestic growth prospects. CEOs from General Motors Co. (GM) to Hewlett-Packard Co. (HPQ) to Manpower Inc. say they are concerned about the health of the U.S. economy. While economists predict a continuing expansion this year and next, executives see a mounting number of obstacles that could clip growth. U.S. employers added the fewest number of workers to their payrolls in a year last month....
Initial Claims Beat Expectations, With Prior Revised Higher, As Whopping 105 Thousand Lose Extended Benefits - Zero Hedge - Tyler Durden - June 7, 2012 - While it is a number which nobody will care about today, especially if it is better than expected, initial claims printed at 377K on expectations of 378K, the first beat of expectations in 5 weeks. Of course, the claims number next week will be revised to over 380K. Why? Because, as now happens every single week, last week's initial claims number was revised higher from 383K to 389K. As a reminder, last week this number was expected to print at 370K. So only a 19K miss when all is said and done. But at least the mainstream media has its bullish for general consumption headline: "Initial Claims drop by 12,000" even as market participants realize this is still QE-promoting. Continuing claims printed at 3,293K, missing expectations of 3,250K, and down from an upward, of course, revised 3,259K. But the most disturbing observation is that in one week alone, a whopping 104,600 people hit the 99-week cliff, and stopped collecting extended unemployment benefits, the most since December 2011, as those on EUCs dropped by -45,808 while those on Extended benefits dropped by a astounding -58,829. As a reminder, Zero Hedge first noted that shortly 700,000 people will no longer be collecting any unemployment benefits. Here is to hoping those off the dole, are at least collecting disability in the USSA as otherwise these are tens of billions in lost purchasing power.
Lawmakers to probe suspicious jobs data at Obama's Labor Dept. - Examiner.com - Jim Kouri - June 4, 2012 - In response to complaints by lawmakers and some news organizations, the U.S. House of Representatives' Committee on Oversight and Government Reform will hold a hearing on June 6 to examine the influence of Department of Labor staff, who are political appointees from the Obama Administration, statistics released to the media and public. The Committee, chaired by Rep. Darryl Issa (R-CA), will probe the Bureau of Labor Statistics processes for collecting and disseminating employment data, including unemployment figures and data regarding jobs created.
Among issues to be considered at the hearing is an April 10, 2012 order, which changes long-standing policy and requires news organizations that report on pre-released Labor Department data to use government-owned computer systems and software. The new policy has been strongly opposed by the Sunshine in Government Initiative, a coalition of media organizations that includes mainstream news organizations and the Online News Association.
Minimum Wage For Restaurant Servers Remains Stagnant For 20 Years Under Industry Lobbying - The Huffington Post - Dave Jamieson - June 2, 2012 - .... Williams, 50, has worked mostly at upscale bistros in Atlanta, Ga., earning $2.13 an hour before tips. It's the most frustrating element of a job she largely enjoys, she says. That miniscule wage is usually swallowed up by taxes, leaving her to live on her tips, which can fluctuate from week to week. She hasn't had health care coverage for years. The restaurants she has worked in haven't offered affordable plans, and she doesn't have the money to pay out of pocket for it. She simply hopes she doesn't get sick.
As for retirement? "I can't even think about retirement," says Williams. "I'd go into shock." Her restaurants haven't offered savings plans, either, leaving her with little beyond a modest 401(k) nest egg from a long-ago foray into the corporate world. The federal government raised the minimum wage to $7.25 per hour in 2009. Some states have raised theirs above that amount, to as much as $9.04, in Washington state. But since 1966, a sub-section of the minimum wage has existed for people who work for gratuities, known as the "tipped minimum wage," which Congress last bumped to $2.13 per hour in 1991. Some states have increased the tipped minimum wage on their own as well -- and Washington, like six other states, has no tipped minimum wage at all, so servers earn a full $9.04 before gratuities. About half of all states, however, continue to allow restaurants to pay servers $2.13, provided they make up the difference if the server doesn't reach the standard minimum wage after tips. The cost of living, meanwhile, has continued to climb. "As far as income goes, I made more 20 years ago than I do now, effectively," says Williams, who has a bachelor's degree but prefers to work in restaurants. "My affluent friends, their jaws drop when I tell them." Under this system, gratuities aren't really gratuities. They constitute the vast majority of a server's salary. Instead of giving a server a bonus for good service, diners are essentially subsidizing many servers' legally guaranteed wages.
And as the tipped minimum wage has remained the same, diners have been subsidizing a growing portion of that guaranteed wage over the years. Servers, meanwhile, are increasingly relying on customers to keep them on pace with inflation. Being paid a mere $2.13 an hour before tips might not be a big deal for a server at a four-star restaurant in Manhattan, where tips are generous and workers can earn a better-than-decent living. But for a career server working at, say, a pancake house in rural Kansas, an extra couple of bucks an hour could make a huge difference.
If Williams' pre-tip wage in Georgia were closer to $5 an hour, for example, like it is in many states, that would translate into an extra $6,000 per year, making it a lot easier to cover basic expenses. Maybe she would even be able to afford health insurance.... The NRA, for its part, says that the industry's growth is no reason to hike the tipped minimum wage. The group says that most servers already earn well above the federal minimum wage of $7.25, and that raising the tipped minimum wage could hurt kitchen employees and others who don't work for tips. "Even in a challenging economy, the restaurant industry has continued to be one of the country’s leading job creators," Katie Niebaum, a spokeswoman for the group, says in an email. "Legislation increasing the required minimum employer-paid wage for tipped employees would force employers to redirect payroll dollars away from employees who do not earn tips, and give them to tipped employees who are usually earning far in excess of the minimum wage."
City Manager’s Recommended Fiscal Year 2012-2013 Budget Ordinance - Pursuant to NC General Statutes §159-12(b), a public hearing shall be held before adopting the budget ordinance. This public hearing was advertised in a newspaper having general circulation in the Hickory area on May 17, 2012. Copies of the budget ordinance were filed for public inspection in the Office of the City Clerk, Patrick Beaver Memorial Library and Ridgeview Library. The recommended budget is also posted on the City’s web page, www.hickorync.gov. Pursuant to NC General Statutes §159-13(a), the City Council is required to adopt a balanced budget before July 1, making the appropriations and levying taxes for the budget year. The City Manager recommends adoption of the attached budget ordinance for Fiscal Year 2012-13. Recommended Hickory City Budget 2012-13 online
*I will come back and add highlights to the Powerpoint story boards below.
Budget total is $94.79 million. General Fund takes General Sources of revenue to fund the basic operations of the city to fund the Police Department, Fire Department, Parks and Rec, Planning, etc. State statutes require utilities to be budgeted and maintained separately. The Water and Sewer fund is completely self sustaining. The lion share of the Transportation is the airport; it also includes the Greenway bus system. Internal Service fund is funded by other funds, but must be maintained separately.
Manager berry states that what we see is a goodnews-badnews budget. Revenues are no longer falling, but they aren't growing either. Tax Revenues are increasing slightly, because we are collecting some back taxes. Sales Tax is expected to grow slightly. The Water and Sewer rates will rise in accordance with the COI. Manager Berry cited data that shows a $4.22 increase over the last 5 years. He cited where rates in Hickory's sewer system ranks 28 out of 33 in the State and this compares to current rates without accounting for the rise they will likely experience. The water system ranks 22 out of the 33. The City manager is also recommending a $1 increase in the solid waste fee that residents pay ($13 to $14)
Strategy is to recognize where there may be spikes in costs. This is why the fuel fund of $1 million was created. Some of those monies have had to be used. $2.5 million is being set aside to fund Capital Improvements over the next 5 years. This is not for new infrastructure. It is for maintenance. This will maintain the current service level.
Manager Berry talked about workforce strategies. He called the hiring freeze a soft freeze. When people leave the position is unfilled. A conversation is held with department heads to see whether the position needs to be filled, consolidate jobs, or contracted out... what will save money. Manager Berry stated that 30 jobs are currently frozen along with the elimination of 37 jobs that means a 67 job reduction in the city's workforce which is more than a 10% cost savings. 4 full time positions at the airport are reflected in this budget.
Manager Berry stated that our debt structure looks very good for a city
our size and puts us in a position where we can borrow some money at a
very good time to borrow.
Assistant City Manager Warren Wood next came to the podium and stated that they started looking at this budget last August and looked at a 5 year plan to see where the headwinds would be coming from during that time period to get ahead of what was coming. Worried about building permitting - half of what it was a few years ago and 1/3 of what it should be. Cities like a 3% annual growth in tax base. Building permitting will have to triple to accomplish this. Expect continued slow growth in Property Tax revenue. Limited sales tax revenue. Depends on Income growth. Property tax creates half of all revenue. Investment earnings continue slow growth. Other issues include ladder company paid for with stimulus dollars that are winding down. Issues/Uncertainties with monies coming from Raleigh. Loss of privilege license revenues will equate to 2.5 cents on the property rate.
The city has saved $700,000 over the life of the debt of water and sewer fund debt. The city is at or exceeding savings associated with accelerated retirement of City Workers.City pays 100% of workers health insurance. Employees will be expected to take ownership of their health or they will pay a premium towards their health insurance, if they don't meet certain benchmarks. City has done well with controlling health costs. There will be a safety assessment in relation to safety issues. Blip in Capital Improvement is a bridge replacement and replacing lights at L.P. Frans stadium. Assessment of fuel costs was done on the high end. Airport is a self-funding endeavor. Employee from planning Department has been moved to Code Enforcement. Conscious of delivery of services. S&P bond rating will be looked at it the upcoming year -- AA currently
Tale of two cities. Where can we save money. We must make some
investments. Economic Opportunities out there include a
Multi-Jurisdictional Business Park. County Manager believes Tipping Fees/Landfill will be waved. Along with vacant building fund and Brownfield Grants will help vacant buildings be redeveloped or torn down.Hr talked about the competitive environment and amazing amenities for a city our size and the need to be able to "tell the story."
Alderman Lail asked about $1.5 million to be budgeted over the next 5 years to replace the water tank at the Water department. Warren Wood stated it is for additional storage and will be 5 new tanks.
Presentation to the Hickory City Council on June 5, 2012 by Dr. Dave Hamilton and Dr. William Litaker Regarding Missions of Mercy, a Free Dental Clinic to be held on July 27 and 28, 2012 at the Hickory Metro Convention Center.
Free Dental Work will be provided to those in need by Dentists and Dental Hygienists in our area. There are other volunteers that are needed. The issue in ensuring that this project is successful isn't finding people with dental needs. It is finding people who are willing to volunteer time to make this a successful event. This event is meant to help people throughout the Unifour area.
A Power Point presentation was shown:
9.5 million people in North Carolina. 1 in 10 people in North Carolina experience a lack of access to regular Dental care and it is getting worse. The North Carolina Dental Society has stepped in and begun a statewide initiative called the North Carolina Missions of Mercy (M.O.M.) Program that will provide Adults with free dental care. Each year a dozen M.O.M.s are staged across our state. Since 2003, M.O.M.s $14.3 million in Dental care and 40,000 patients. In 2011, this program provided $4.2 million to 8,200 adults.
At least 200 volunteers are needed to help process patients, serve food, and help with cleanup. Sponsors are needed to provide time and money. $25,000 is being spent by the Dental Society to bring the event to Hickory. $8,000 has been raised so far.
Leo Rosten - ""The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well."
40 chairs will be set up. They hope to see 500 patients in need. Cleaning teeth, doing, fillings, Dental Extractions will be some of the services provided. This is a drop in the bucket of what needs to be done. A clinic in Charlotte last year treated 1,300 people. How we respond to this will determine whether we can ever do this again. If successful, we can do this every year.
