"No Change!" will not work.

The following points that will be made here are important and I have made them before, but they are important and should not be dismissed. These are points that you really need to think about as we move forward. There are some around here who seem to have a problem with freedom of speech and/or expression.  They do everything they can to shut down anyone and their ideas who don't fit into the template of Hickory's accepted norm.  In the end, my point is that I think this community would be better off if it were to become more accepting of diversity of cultures and ideas, even if I'm not comfortable with what some others do and/or say.

In my opinion, there has been a general acceptance of the status quo that seems to be ingrained in the attitudes of many of the local citizenry.  I went to the Referendum forum the other night and witnessed the people from the "No" side and they certainly fit into a Status Quo - "No Change" mentality.

I was glad that these people spoke so that I could understand where they were coming from. The Mayor and four of six City Council members spoke and their message seemed to be that they haven't made any mistakes, it is citizen's responsibility to call them, they know what is best for the community, they are working hard at a thankless job, how the Yes people were just trying to divide the city and it's just one city... I heard no comprehension of their role as public servants.

Then there were the former City Council members who got up and told us that they were delivering our water, picking up our garbage, making sure the streets operated properly, and it is such a thankless job. They fussed about the current power structure being called a club and talked about how much tax they paid and about how the word Elite being attached to the Power Structure really bothered them, because they didn't know who these elite were. There was no mention of the little sweetheart deals they had been involved in that were tied directly to this power structure.

Then there were all of the people who spoke and informed us that they weren't from Hickory, that they had moved into Hickory, and seemed to have felt it necessary to tell we Yes people that we don't know how good we've got it. We don't know what being poor is. We don't know how good our leadership is. That they didn't know why we should want to change such a wonderful system of such kind and caring souls as we see on the Hickory City Council.

Well, what we saw the other night was the Power Structure in Hickory that we are up against. There was no diversity amongst that group. The people who spoke for the status quo were 60 to 75 years old. They are getting their pensions and they have their businesses, and when they want something the current City Council is right there for them. They take care of their own. They can't see things from another perspective, because they're drunk from the Kool-Aid.

I can understand the "No Change" group. They don't see anything wrong with Hickory City Council, because they are in the club with them. They don't see anything wrong with the Power Structure, because as long as it stays in place they stay in place. It takes care of their needs. Whatever they want, they get... Whatever they don't want, we don't get.

I heard it said again the other night by council members that we are in a good position to succeed and yet the economy here in Hickory has been stagnant for over a decade. When do we start down this path to success? The unemployment rate is over 11%. We have the second highest unemployment rate in North Carolina. Our per capita income rate is the lowest of any metropolitan area in North Carolina. We have the worst education attainment numbers of anywhere in North Carolina.  Our young people have fled and we are replacing them with seniors who are just above the poverty line. And the "No Change" group is telling you that everything is just fine. We are set up for success.

They said it the other night. The problems we have in Hickory are all National and International issues. There has been an acceptance that we can't do better, because of external forces; that the State and Federal Governments hold all of the cards when it comes to our Economic Development and none of our plight is our current local government's fault. I do not accept that conclusion. While I understand that the Federal Government has done us no favors, what I believe is that we can and should do better.

Yes, I understand that we have a City Manager form of local government. Does that absolve the Mayor and City Council in the decision making process, when they are responsible for hiring and oversight of the City Manager? Is the City Manager supposed to be responsible for everything? Folks, you do understand that they always have the ability to fire him or buy out his contract, don't you? So who is really in charge?

And guess who is supposed to bring city issues forward and vote on them? The Mayor and the City Council. It is supposed to work as a partnership, although this Council, for the most part, has abrogated that responsibility. The only thing the City Manager (and staff) is supposed to do is study issues and make recommendations. The City Manager has no vote!!!

The way that Hickory's local city government has worked is that it has provided cover for the Mayor and Council and built layers of bureaucracy that disband processes towards accountability. This puts the Mayor, Council, and City Manager in the position of protecting one anothers' interests and what we have seen, in my opinion, is our City Manager looking to please the Council and our Council waiting for the City Manager to lead the way.

We have stated what we firmly believe when we say Hickory has been directionless for the the last decade. These are revolutionary times we are living in and the Mayor and his friends just don't get It. I think he and his friends have a sense that they are vested in Hickory, but what they see as "Hickory" is the "Old Hickory" -- Textiles, Furniture, Mills, and Factories. Maybe it is a generational issue, but I don't sense that they can envision the new era that this world demands that Hickory move into.

Many of these "Old Hickory" people seem to be scared to death of change. I've told you about the meeting I was at nearly two years ago where the gentleman said Hickory just needed to get back to what it was and tweak around the edges a little. The Mayor at the Republican debate about this Referendum said that he didn't know what this was all about, but next it could be coming to you. And that this was a bunch of Democrats with a handful of Republicans involved. Then the other night with all of the seniors telling us how great everything is and we should be grateful. Where is the humility with these folks? It really hit home that none of them think about legacy and what the future holds for Hickory. All I heard was me, me, me, me, me...


"New Hickory" is represented by people who are struggling to find themselves and their identity in a world that no longer has a road map, while trying to break free from the constraints placed on it by the interests of "Old Hickory." "New Hickory" wants to join in with this new world's technology, and is willing to take more chances and be more creative, but "Old Hickory" is worried about what they construe to be risky ventures.

"New Hickory" has much more at stake in this adventure, because their future (THE FUTURE) is imperiled. What we need to see is the reality of all of Hickory coming together. "New Hickory" seems to be expected to create their own path to the decision making process. "Old Hickory" does not seem to understand that we have to encourage participation and start grooming the future leaders of this city. They seem to be more interested in hanging amongst themselves and the echo chamber of ideas, which leads to "group think."

I think that "Old Hickory" has always been obsessed with issues of Authoritarian Control and the people of this city were accustomed to being told exactly what to do. I remember the old days of hearing all of the whistles going off during the day at Hickory Chair. People were basically trained when to wake up, toilet, shower, shave, arrive, break, lunch, break, go home, and do it all again tomorrow. The "Powers That Be" made all of the decisions and the citizens were basically told not to worry themselves with details. That arrangement worked fine in the days of Bean Counting and Mass Production, but those days have long since passed. Yet, many of our leaders and citizens are systemically attached to those old ways and the nostalgia of the old days. Yet, those good ole days weren't so great for all.

"No Change!" will not work. We have to evolve. It used to be no big deal for teenagers to quit school and go work in a factory, but we have learned over the last decade how important knowledge truly is. But, with knowledge come opinions and that isn't something that the "Powers That Be" in this community seem to be comfortable with. The old mindset was, "If we want your opinion, we'll give it to ya." That mindset is not productive and it stifles creativity. 

I have said it before and I will say it again. We the People are the government and if we don't start demanding results, then we will see none. If we don't expect openness, then we shouldn't cry when the surprise hits the fan. We all have to work together to create hope for the future. The Mayor and Council have tried to intimidate people about this referendum and the changes it would bring. What are they really so afraid of?

Business as usual is a cancer in this community. We're attempting a cure. We have invested a lot of time and energy towards this effort to bring Hickory's government back to all of the people. We have done this so that none of us should have to be burdened with the prospects of a Coulda, Shoulda, Woulda Future.  This is the time to seize this opportunity that we believe can transform Hickory into a Can Do, Shall Do, Will Do Culture.

It is time to move forward by voting YES!!! to more citizen input. YES!!! to more creativity. Yes!!! to effectiveness. Yes!!! to efficiency. Yes!!! to accountability. YES!!! for this referendum.

City Council wants you to call them

if you need anything.

Jill Patton told the people at the forum the other night that it is the citizens' responsibility to call her if they need anything or have any ideas. And she said she represents the whole City, so she appreciates calls from anyone in the city. She said her phone contact number is on the city's website and you should not hesitate to call her. So, as a public service, I am providing those numbers to help facilitate her wish. I will also provide the link at the top of the page. Rudy Wright and Hank Guess have both emphasized much the same thing.

Hickory City Council Home Page

Ward 1  - Brad Lail - 322-3510

Ward 2 - Bruce Meisner - 324-4100

Ward 3 - Danny Seaver - 322-5155

Ward 4 - Hank Guess - 320-5363

Ward 5 - Sally Fox - 962-5555

Ward 6 - Jill Patton - 781-1155

Mayor -  Rudy Wright - 238-1465

Newsletter about the City Council meeting of September 4, 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 8/21/2012 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. Whit Malone, Pastor, First Presbyterian Church

Consent Agenda:
A. Special Event/Activities Application for various events with the City and Hickory Music Factory, Mandy Pitts, Communications Director/Brand Manager, with the City of Hickory, the following dates, September 8, 3:30 pm to 6:30 pm, Drum Circle; October 20, 5:00 pm to 8:30 pm, Ulysses; November 10, 3:30 pm to 6:30 pm, Drum Circle; and November 16, 5:00 pm to 8:30 pm, Christmas Tree Lighting, Rick Cline and Nathan Hefner, at The Sails on the Square.

*** Always glad to see Ulysses get a gig

B. Special Event/Activities Application for Children’s Advocacy and Protection Center Vigil, Elizabeth Grigg, Hickory Police Department, a vigil for children deaths by parent/guardian, October  16, 2012, 11:00 am to 1:30 pm at The Sails on the Square.

C. Special Event/Activities Application for Ignite Hickory, Inc., applicants, Charles Moretz, and Christopher Harris, Managers, for Christian Rock/Worship music, October 6, 2012 from 2:30 pm to 10:00 pm at The Sails on the Square.

D. Transfer of Cemetery Deed from Mark Lawson Miller, Jessica Lyndsy Miller and Dorothy J. Moot Trust f/b/o Brennan Lawson Miller, William Kelly Miller, Trustee to William Kelly Miller in Oakwood Cemetery

E. Transfer of Cemetery Deed from Donald C. Beaver to Patricia A. Anderson, in Oakwood Cemetery

F. Request approval of six days of vacation time to be used as prizes for the United Way Campaign. - Each year the City of Hickory conducts a United Way campaign, providing an opportunity for coworkers to support United Way and its member organizations. To encourage participation, we would like to offer participants a chance to win some vacation time. Based on the level of participation, coworkers would be eligible to enter a drawing to win one of three vacation time prizes of one day, two days or three days.

G. Request from Hickory Police Department to Award Police Badge and Service Weapon to Retiring Lieutenant James Kurz - By authority of NC General Statute §20-187.2, City Council may award the service weapon and police badge to retiring Lieutenant James Kurz upon his retirement from Hickory Police Department on October 1, 2012 after completing almost 25 years of service with Hickory Police Department. Upon approval from City Council, the police badge and service weapon will be declared surplus and removed from the city’s fixed asset inventory.

H. Approval of the FY 2011 – 2012 Consolidated Annual Performance and Evaluation Report  (CAPER) - The US Dept. of Housing and Urban Development requires the City, as a Community Development Block Grant (CDBG) entitlement funding recipient, to report on CDBG monies spent within the previous fiscal year. This report evaluates the effectiveness of the use of resources in addressing identified goals and objectives cited in the Annual Action Plan, which is prepared before the fiscal year begins.

I. Request for approval of the Wastewater Treatment Facility Easement Agreement with Duke Energy Carolinas, LLC for the Hickory-Catawba Wastewater Treatment Facility for 0.0106 acres at no cost. - The Public Utilities Division has been planning for the Upgrade/Expansion of the Hickory-Catawba WWTP for approximately 3 years. This upgrade/expansion is being planned in cooperation with  Catawba County for wastewater service provision in the Sherrill’s Ford, Town of Catawba, Hwy 150 and Claremont areas. The NC Department of Environment and Natural Resources – Construction Grants and Loans Section has a requirement for all new and/or renovated Wastewater Treatment Facilities to possess a 50-ft buffer from all property lines. In order for this site to accomplish this requirement, an easement must be acquired from Duke Energy Carolinas, LLC.

J. Request approval of the agreement for Engineering Services for Eastwoods, Random Woods and Sherwood Forest Subdivisions Sanitary Sewer Project the McGill Associates, PA in the amount of $129,300.  - This project includes construction of approximately 25,100 linear feet of 8-ingh PVC
sanitary sewer lines. The three subdivisions are within or immediately adjacent to the existing City of Hickory Extra Territorial Jurisdiction and the City of Hickory has existing sanitary sewer mains available for connection by the proposed subdivision sanitary sewer lines. McGill Associates, PA was  selected as the most qualified engineering firm to engage for these services due to the firm’s professional qualifications, successful history with projects involving the State agency and familiarity with the project due to previous work they preformed for the City of this project during initial submittal of the Preliminary Engineering Report. The proposed contract with McGill Associates, PA is to provide design, construction administration and project close-out services necessary to complete
the project as approved by NC Department of Environment and Natural Resources. Project engineering fees were included in the estimates submitted to and subsequently approved by the Grant Offer.

K. Request approval of a Corporate Hangar Lease with CommScope, Inc. for a term of five years for Hangar S5 located on the south ramp the Hickory Regional Airport. - This is a five year lease that will commence on September 1, 2012 and extend through December 31, 2016. The Lessee shall have the right to extend the terms of this Agreement for one additional five year term upon the same terms and conditions with the exception of an increase in the annual rent by ten percent. For the initial five year term, the Lessee shall pay an annual rent of $72,000 for its use and occupancy of the leased
premises in twelve equal monthly installments of $6,000.

L. Approval of a Proclamation for Constitution Week, September 17-23, 2012, to reaffirm the ideals the Framers of the Constitution had in 1787 by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties.

M. Grant Project Ordinance No. 3
To budget a $42,364 FY2012 Edward Byrne Memorial Assistance Grant award through the Justice Assistance Grant (J.A.G.) program in several Police Department operational line items. The City of Hickory and Catawba County have received a combined allocation of $42,364 under the 2012 Justice Assistance Grant program. The City of Hickory is eligible for a direct award of $26,658 and Catawba County is eligible for a direct award of $15,706. This grant requires no local matching funds from the City. The Police Department will use funds to purchase infrared/thermal imaging camera recorder for low light situations and for law enforcement training to include training aids for police officers.

Matters not on the Agenda - Arnita Dula addresses the possibilities of creating a clothing ordinance as spoken of by Larry Pope at the City Council meeting of August 7, 2012 about the appearance (dress) of young people in the City (1:00:00 mark to 1:05:00).

As Mrs. Dula states these ordinances first appeared in 2007.  Fines and Citations have been imposed in communities she addresses. These are expansions of decency laws. Currently there are no such communities in North Carolina. Dunn, NC discussed, but did not pass such an ordinance this past August. The ACLU does not support such ordinances, because they are Unconstitutional and disparately impact minorities.

The Hounds opinion is that we should not impose such an ordinance on the people in Hickory. The Police have enough to do.

*** Following this Council Meeting a forum on the City Council Ward Voting Referendum issue took place. I will await the City's presentation and link to it here on the Hickory Hound. I think it is great that the City is doing this and I hope that the city will begin recording and submitting, via Youtube, City Council meetings as we move forward. It fits in with the agenda of bringing government to the people and being open and transparent.

I thought the meeting was good in the sense that everyone got to speak their peace and if that makes people feel good, then that is always a good thing. There is no way that this could be considered a Town hall, because without a point man there is no Town Hall. I don't feel that the meeting was productive, but it is not my prerogative to tell you what you should think about the meeting.

It wasn't the type of meeting where you could get answers from either side of the issue. And I don't think it swayed anyone. Those who were there that supported the issue will still support the issue. Those who will vote no will still vote no. And those who were undecided are still undecided. I will address some of the things said at this forum going forward. The good thing is that the people in the room understand where everyone in the room stands going forward as we deal with the issues involving this community.

*** And I do appreciate Hal Row stepping forward to moderate the event and I would like to wish him a Happy Birthday for September 5, 2012. Peace be with You Hal!

Why the Million Dollar No-Bid Tent on Union Square Matters

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Items of Relevance going into Tonight's Referendum Forum - September 4, 2012

The Definition of Cronyism and the Million Dollar Tent - August 31, 2012

Items of Relevance going into Tonight's Referendum Forum

Tonight's Referendum forum is being held at the SALT Block auditorium five minutes after the City Council meeting ends. The City Council meeting will begin at 7:00pm and should end around 7:30pm. The SALT Block Auditorium is located at the right hand side, along 3rd Avenue NE, of the building as it faces Highway 127.

Below are articles of relevance related to issues that have previously been posted on the Hickory Hound and may give you a context of how we have gotten to where we are today.

A contention has been made by Rudy Wright and some others that the Elite statement relates to anyone and everyone who visits or works on Union Square. The people I have spoken with don't seem to construe it in Mr. Wright's fashion. The Elite, some would prefer Cabal, relates to Interest Groups, Council Members, Property Owners, and Business Owners who feel this City should revolve around their needs, interests, and desires.

As I have stated, I have no problems with Union Square itself. I used to go down there and hang down there all the time when I was a kid. I remember being a 4 year old and going to the Christmas parade. I was born on the 75th anniversary of First National Bank's opening and received a $75 bank account as a gift because of that. Therefore, I was born with a Union Square Bank account. I was even invited to go to the opening night when the new building opened, which is now Wells Fargo.

My grandfather worked at the Hickory Station Depot as a switch operator and I was there the last day that a passenger train came through... I believe it was 1975.

I have nothing against Union Square. What I have a problem with is bringing the "Too Big too Fail" mentality to Hickory. We seriously need to rethink the way that Union Square operates. We have thrown millions of dollars at Union Square since the beginning of the new millennium without measurable results. And the Powers That Be say "No Change!"

It is time that we start looking at the whole of Hickory. The definition of insanity is doing the same thing over and over again and expecting a different result. For the most part what we are seeing from the No Change! group is that it is supported by people of older generations who have wealth. And they have spread fear related to Evolution.

That is what has gotten us behind in this community. The people at the top of the food chain are satisfied with the Status Quo and their actions keep everything frozen in place and that is where we see the cronyism take shape. They don't know that it is a Crony culture, because that is the way things have always been done around here when it comes to the people on top.

It isn't about pools, tents, and/or Larry G. Pope. It is about Conflicts of Interest versus Accountability and how that relates to Hickory City Council representation. That has an effect on your every day life. You will have to decide which side you are on.

So I present articles below that address these very issues:

Solutions to the Problems that Hickory, Catawba County, and the Unifour are facing -- We Want Your Input - October 30, 2008 - Read the comments from this article from 4 years ago. You can see that people have ideas, but there isn't anyone that is willing listen to them


TIME TO CHANGE WEAK ETHICS RULE - Harry Hipps - November 20, 2008 - It's time to change the city ordinance to make a clear statement on ethics. This is an article related to when Council should recuse themselves when taking votes.

Tax Money Spent on Downtown Interests from 2002 to Present (2008) - November 26, 2008 - The link to the stats spreadsheet is no longer available, because Google has changed reference points which allowed such linking, but the stats are still valid for the timeframe...                By looking at the numbers, we can see that the vast majority of these grants and studies were done for the benefit of the area in the immediate vicinity of Union Square. 41 of 47 of these grants (87.2%) have been made within 4 blocks of the geographic center of the city.

Newsletter about the City Council meeting of February 17, 2009 - February 17, 2009 - This meeting entailed the City Council looking towards giving the HDDA $3,000 to utilize towards graffiti removal. This money would have been in addition to the $50,000 that the HDDA received at the time for their operations from the city - subsequently that figure has risen to $75,000 per year. Harry Hipps originally addressed this issue in an article entitled SHAKEDOWN BY DOWNTOWN COMING - (February 15, 2009).  Harry spoke with the Mayor about this issue and came to an agreement with Rudy and Rudy went into the meeting and tabled the issue. 

The Mayor asked for more information about this request. City Manager Berry said the CAC has the funds, but they would like a costiary program of a 50% matching funds up to $250 to pay for the removal of graffiti. Mayor Wright asked if this was only for Downtown. Asst. City Manager Surratt said that it was decided during CAC discussions that it was best for this to be citywide. Alderlady Hoyle asked about requirements. Ms. Surratt stated that a police report would have to be filed, it would have to be photographically documented, and obtain the cost for removal. Alderman Seaver asked if they would apply to the CAC for the grant. Ms. Surratt said they would and the staff would review it.

The Mayor asked if only graffiti would be included and not vandalism. Ms. Surratt said it would just be graffiti. The Mayor said that he thought insurance would cover this after deductibles. The Mayor asked if the CAC used up all of its grants for beautification projects. The Mayor said he didn't want to get involved in what deductibles businesses were paying on their insurance. He said that this program would only reward businesses with high deductibles and businesses with first dollar deductibles would receive nothing. Mayor Wright wants to push for a victim's fund that will be built by true work by the perpetraitors. He understands the good intentions of the HDDA and the CAC, but he isn't certain any buildings will be cleaned, because they qualify for $250. They will either clean it or not clean it. The Mayor motioned that the issue be tabled until some of the issues that he brought up can be explored and worked through. Motion carried unanimously.

Newsletter about the City Council meeting of May 4, 2010 (Departmental Report Item 4) - May 4, 2010 - Less than 15 months later the Mayor does a 180 degree turn and decides that we should not only put $3,000 into graffiti removal, the council ups the ante to $25,000 into this graffiti removal program. To this day, we have not been given the promised update, seen who received the funds, or seen any accountability benchmarks to ensure that measurable value was gained from this fund and effort.


My Presentation to the Council during the February 16, 2009 City Council Meeting:

Thank You Council for allowing me to voice my concerns about this city’s investments in the Union Square area. You may notice that I am saying Union Square, because I believe Hickory’s downtown to include a lot more area than what was described as Downtown by Connie Kincaid in Sunday’s Paper.

I have read transcripts of every meeting that go back to when the City first started placing the minutes of Council meetings on the internet. I have seen what I construe as a waste of city funds, when it comes to investing in Downtown. I am sure tenants of other sectors of this city would like for you to repair and enhance their property the way you have in the immediate vicinity of Union Square.

In the comments section of today’s editorial in the Hickory Daily Record, an owner of a local Bike Shop had a comment that addresses this issue.

He stated “Hickory should promote businesses throughout the Hickory metro area, not simply downtown. I don't mean give businesses money or tax credits, it's up to the business owners to provide their own capital. The downtown merchants seem to think the city should provide them with funding to promote their businesses. If you can't take the pressure of building up and promoting your own business with your money, go do something else. But please, take your hand out of my pocket. Customers decide where they want to shop, if they are not coming to your store maybe they don't care for your products.”

I have been told that Mast General Store looked into possibly locating a store downtown, but they were micromanaged in their dealings with “the powers that be downtown” to the point that they said they would never locate here if they had to deal with certain individuals.

A former tenant told me why he is no longer downtown, He said he didn’t mind the competition that was brought by a major variety retailer, such as the former Woolworth’s. He said it only enhanced his business.

He stated and I quote, "silly decisions by the big fish in downtown's small pond (too many bars, no variety stores, the closure of the Fresh Air, parking stupidity, the downsizing of the cops' presence just when drunks took over nights) killed downtown's traffic and my business."

I am not here, just to talk about problems. If we are honest with ourselves, we know what the problems are. We need to help Ms. Hoyle enhance the Ridgeview area, because that is downtown. We need to spruce up the Southeast and Southwest sections of town, because that is Downtown. If you want to throw around $50,000 every year toward developing downtown, then that is where it should go.

What needs to be realized is that "Downtown" is more than just Union Square and a couple of blocks surrounding it. We cannot have upscale anything downtown, until the blighted areas surrounding the epicenter of Hickory are addressed. The last Downtown grocery store was robbed out of business.

Mr. Mayor, Council, I am not here to take pot shots or lob bombs. My interests aren’t here to tear this city down. We are here to build this city up, but if we find that there are cracks in the foundation, then we must be willing to tear it down to rebuild it on a stronger, more resolute foundation. We must quit trying to restore downtown from the inside-out and start doing more to develop it from the outside–in.

Economic Stories of Relevance in Today's World -- September 2, 2012

The U.S. Drought Is Hitting Harder Than Most Realize - Peak Prosperity - Chris Martenson - August 29, 2012 - This is an important update on the U.S. drought of 2012, the combined record-setting July land temperatures, and their impact on food prices, water availability, energy, and even U.S. GDP.                     Even though the mainstream media seems to have lost some interest in the drought, we should keep it front and center in our minds, as it has already led to sharply higher grain prices, increased gasoline costs (via the pass-through of higher ethanol costs), impeded oil and gas drilling activity in some areas (due to a lack of water), caused the shutdown of a few operating electricity plants, temporarily reduced red meat prices (but will also make them climb sharply later) as cattle are dumped in response to feed- and pasture-management concerns, and blocked and/or reduced shipping on the Mississippi River. All this and there's also a strong chance that today's drought will negatively impact next year's Winter wheat harvest, unless a lot of rain starts falling soon.

World food prices jumped 10 percent in July: World Bank - Reuters - August 30, 2012 - From June to July, corn and wheat prices rose by 25 percent each, soybean prices by 17 percent, and only rice prices went down, by 4 percent, the World Bank said.                       Overall, the World Bank's Food Price Index, which tracks the price of internationally traded food commodities, was 6 percent higher than in July of last year, and 1 percent over the previous peak of February 2011.                        
"We cannot allow these historic price hikes to turn into a lifetime of perils as families take their children out of school and eat less nutritious food to compensate for the high prices," World Bank Group President Jim Yong Kim said. "Countries must strengthen their targeted programs to ease the pressure on the most vulnerable population, and implement the right policies."                 


Sears to drop out of S&P 500 - The London Telegraph - Andrew Trotman - August 30, 2012 - The retailer, which was founded in the 19th century, is one of the original members of the S&P 500, and in 1965 was the fifth largest stock in the country.                   However, the shares have struggled over the past few years and are down 70pc from its all-time high in April 2007 to trade at $53.26 on Thursday. However, the stock is up 81pc in 2012, the 6th biggest gainer in the index.                  S&P is pulling Sears out of the index as the stock’s public float - shares that regular investors can trade - has been below the 50pc of the index requirement “for an extended period of time".               Last year, Sears, Roebuck & Co - to give the group its full name - announced plans to sell a handful of stores and close more than 100 others in a bid to turn the company around.                 Sears made history in 1974 when it completed the 110-storey Sears Tower in Chicago. The tower became the world's tallest building upon its completion, a title it took from the World Trade Center in New York. Though no longer the tallest building in the world, it remains the tallest building in the US.

Majority of New Jobs Pay Low Wages, Study Finds - New York Times - CATHERINE RAMPELL -  August 30, 2012 - While a majority of jobs lost during the downturn were in the middle range of wages, a majority of those added during the recovery have been low paying, according to a new report from the National Employment Law Project.                        The disappearance of midwage, midskill jobs is part of a longer-term trend that some refer to as a hollowing out of the work force, though it has probably been accelerated by government layoffs.                       “The overarching message here is we don’t just have a jobs deficit; we have a ‘good jobs’ deficit,” said Annette Bernhardt, the report’s author and a policy co-director at the National Employment Law Project, a liberal research and advocacy group.                       The report looked at 366 occupations tracked by the Labor Department and clumped them into three equal groups by wage, with each representing a third of American employment in 2008. The middle third — occupations in fields like construction, manufacturing and information, with median hourly wages of $13.84 to $21.13 — accounted for 60 percent of job losses from the beginning of 2008 to early 2010.                       The job market has turned around since then, but those fields have represented only 22 percent of total job growth. Higher-wage occupations — those with a median wage of $21.14 to $54.55 — represented 19 percent of job losses when employment was falling, and 20 percent of job gains when employment began growing again. 

Half of Americans die with almost no money - Market Watch - Andrea Coombes - August 29, 2012 - Almost half of U.S. retirees die with savings of $10,000 or less, but that grim finding doesn’t fully describe the variability and uncertainty that characterize retirement in America, according to a recent study.                    While 46% of retirees have just $10,000 in savings when they die, “That doesn’t mean their standard of living is very low—they might have a relatively generous pension plan, most of them will have Social Security,” said James Poterba, professor of economics at M.I.T., president of the National Bureau of Economic Research, and a co-author of the study.                    But the findings “suggest something about the financial resiliency of these households,” Poterba added. “They may not have much capacity to absorb a shock, such as an out-of-pocket medical expenditure. They don’t have very much in the way of liquid assets they can access.” Read the study here.

Guest Post: The Shape Of 40 Years Of Inflation - Zero Hedge - Tyler Durden - 09/01/2012 - While many claim that inflation is at historic lows, those who spend a large share of their income on necessities might disagree. Inflation for those who spend a large proportion of their income on things like medical services, food, transport, clothing and energy never really went away. And that was also true during the mid 2000s — while headline inflation levels remained low, these numbers masked significant increases in necessities; certainly never to the extent of the 1970s, but not as slight as the CPI rate — pushed downward by deflation in things like consumer electronics imports from Asia — suggested.

Bernanke says Fed will act if needed, but no QE3 yet

The First Step...

Last month, August, was the second largest month ever on the Hickory Hound with 3,203 unique views and 6,293 page views. I couldn't have done it without the help of the No Steps Backwards Coalition and Chad Bolick, who by telling people not to come to the Hound, pushed them right to us.

Big Thanks,
Thom