Economic Stories of Relevance in Today's World -- February 10, 2013

Bert Dohmen to Moneynews: Phony Inflation Numbers Mask Recession - Money News -  - Dan Weil and Kathleen Walter - February 7, 2013 - To Bert Dohmen, editor of the Wellington Letter and founder of Dohmen Capital Research Institute, the 0.1 percent contraction in U.S. gross domestic product (GDP) in the fourth quarter is more than a blip on the economy’s recovery path. It proves the economy isn’t even in recovery mode, he says.                         “We are already in a recession,” he tells Newsmax TV in an exclusive interview. “We got into a recession last year. If you factor in the actual rate of inflation instead of the phony CPI [consumer price index] or GDP deflator that the government uses, the economy has been in a recession overall.”                      The CPI rose 1.7 percent in 2012. The GDP price deflator gained 1.3 percent in the fourth quarter.                     

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To Bert Dohmen, editor of the Wellington Letter and founder of Dohmen Capital Research Institute, the 0.1 percent contraction in U.S. gross domestic product (GDP) in the fourth quarter is more than a blip on the economy’s recovery path. It proves the economy isn’t even in recovery mode, he says.                      “We are already in a recession,” he tells Newsmax TV in an exclusive interview. “We got into a recession last year. If you factor in the actual rate of inflation instead of the phony CPI [consumer price index] or GDP deflator that the government uses, the economy has been in a recession overall.”                 The CPI rose 1.7 percent in 2012. The GDP price deflator gained 1.3 percent in the fourth quarter.                 “If you calculate the CPI now as it was calculated in 1980, then inflation is actually around 9 percent,” Dohmen says.                       “What happens is that when inflation starts rising, they change the measure of inflation. They change the basket. So the published inflation rate currently has nothing to do with reality.”

US Trade Deficit Drops To Lowest Since January 2010 As Crude Imports Plunge To 1997 Levels - Zero Hedge - Tyler Durden on February 8, 2013 - Following November's massive trade deficit surge, when the final print of $48.7 billion was far worse than the $41.3 billion expected, it was only (il)logical that the December trade number would reverse this trend to the other extreme, which it did with the December trade balance plunging from a revised $48.6 billion to a tiny $38.5 billion - the lowest deficit since January 2010, and the biggest beat to expectations of $46 billion since February 2009.                      The deficit was the result of December exports which were $3.9 billion more than the $182.5 billion in November, and imports some $6.2 billion less than November's total $231.1 billion. Broken down by category, the goods deficit decreased $9.4 billion from November to $56.2 billion, and the services surplus increased $0.7 billion from November to $17.7 billion. A key driver of this move was a spike in Petroleum exports which shrunk the Petroleum product trade gap to the smallest it has been since August 2009 as the US imported the least amount of crude oil since February 1997. Whether this is due to rising domestic production, or just the ongoing collapse in end demand (which is to the US economy as electricity is China's traditional "8%" GDP) remains unclear.


So Who Is Lying (More)? - Zero Hedge - Tyler Durden on 02/08/2013 - Overnight China reported great trade data which saw exports and imports soar by more than 20% each compared to 2012. Of course, when one adjusts for January calendar effects the "rise" was virtually non-existent but that was too much work for the Shanghai Composite algos. A few hours later, the US did the same, reporting even better trade data which saw the trade deficit plunge the most in nearly three years. So far so good: we just have one question - who is lying more. Because unlike all other sole-sourced economic manipulated data which is solely a function of some excel goal seek model and various spreadsheets, bilateral trade has to foot. One country's net exports have to equal its countepart's net imports and vice versa.                    Which is why we compiled the net trade data between the US and China, which was trumpeted earlier to have surpassed a $300 billion ($315 billion to be exact) deficit. At least as reported by the US side. The same "data", when reported from the perspective of China amounts to a surplus of some $219 billion, a difference of $96 billion!                              In other words, either China is massively underreporting its net exports to the US or the US is boosting its net imports figure.                                 Or, just as plausibly, both nations are simply pulling numbers out of thin air - numbers which have a massive impact on both nations' respective GDP prints, which is data that, at least in the Old Normal, used to matter.


Productivity Falls at 2%, Most in Nearly Two Years - Money News - February 7, 2013 - U.S. worker productivity shrank in the final three months of 2012 although the decline was caused by temporary factors.                          Productivity contracted at an annual rate of 2 percent in the October-December quarter, the biggest drop since the first quarter of 2011, the Labor Department reported Thursday. Productivity had risen at a 3.2 percent rate in the July-September quarter.                  Labor costs rose at a 4.5 percent rate in the fourth quarter, the fastest gain since the first quarter of 2012....                     The trend in productivity has been weak for the past two years. For all of 2012, productivity rose by just 1 percent following an even smaller 0.7 percent rise in 2011. Those gains were less than half the average growth that companies saw in 2009 and 2010, shortly after many laid off workers to cut costs during the Great Recession. And it's below the long-run growth of 2.2 percent a year dating back to 1947.                      Companies may ultimately need to hire more workers if they see only modest gains in productivity and more demand for their products.                      Economists predict worker productivity will be weak through 2013. Higher productivity is typical during and after a recession, they note. Companies tend to shed workers in the face of falling demand and increase output from a smaller work force. Once the economy starts to grow, demand rises and companies eventually must add workers if they want to keep up.                  For all of 2012, labor costs were up a modest 0.7 percent. That compared to a gain of 2 percent in 2011 and a decline of 1 percent in 2010. Labor costs were rising more rapidly before the Great Recession, which triggered millions of layoffs and reduced workers' bargaining power....

CBO: Spending cuts and tax increases slowing growth - CNN Money - Jeanne Sahadi - February 5, 2013 - The looming $85 billion in spending cuts coupled with new tax increases will slow economic growth considerably this year.                    But the economy is likely to pick up steam in 2014, pushing unemployment down and setting the stage for a rise in interest rates and inflation.

Those are key takeaways from the annual budget and economic outlook released Tuesday by the Congressional Budget Office, the nonpartisan scorekeeper for lawmakers.                   Deficits: The CBO estimates that this year's deficit will fall to $845 billion, or 5.3% of the size of the economy, in part because of the so-called sequester -- the blunt, automatic spending cuts across defense and nondefense programs set to take effect March 1.                     If that happens, 2013 would mark the first time since 2008 that the annual deficit comes in below $1 trillion.               And the downward trend would continue for the next two years, when the deficit in 2015 falls to 2.4% of GDP.                 But then deficits would start to go up again. The CBO lays out the reasons -- "an aging population, rising health care costs, an expansion of federal subsidies for health insurance and growing interest payments on the federal debt."                  Debt: For the decade, the CBO expects the country to add $7 trillion in debt. By 2023, the debt held by the public would rise to 77% of GDP up from 76% today. That's the largest percentage since 1950 and almost double the 39% average over the past 40 years.                             Debt could rise to 87% of GDP by 2023 if Congress makes legislative changes that undo planned spending cuts or tax increases.


Jim Rogers on Fed Easing? ‘This is going to end very very badly’ - The American Pen Currency - Kurt Wallace - February 6, 2013 - Jim Rogers of Rogers International Commodities Index (RICI)  joins Open Currency Update with Kurt Wallace for Fed Easing? ‘This is going to end very very badly’. Jim discusses Germany’s repatriation of  gold and the questionable response of an 8 year timeline by the United States to return the gold. He weighs in on Fed Easing and the effects on those who invested properly vs. those who benefit from printing money. He also give us a sneak preview of his new book Street Smarts: Adventures on the Road and in the Markets where he details his thought process on investing and what he learned from his successes and mistakes. Audio



Will Japan's "Attempted" Reflation Succeed And Will It Spill Over Into Full-Fledged Currency War? - Zero Hedge - Tyler Durden - February 7, 2013 -  Yesterday we presented a simplistic analysis of why for Japan "This Time Won't Be Different", a preliminary observation so far validated by the just announced Japanese December current account deficit which was not only nearly double the expected 144.2 billion yen, printing at some 264.1 billion yen, but was only the first back-to-back monthly current account deficit since 1985....


Are we throwing in the towel on American workers? - CNN Money - Nina Easton - February 7, 2013 -  ...The tech companies got their wish list with a bipartisan bill that raises the cap on H-1B visas from 65,000 to 115,00—a number that could go as high as 300,000 in future years if those visas are filled fast enough. Which is possible, since the pent-up demand to hire talented foreigners is huge. Smith predicts a repeat of 2008, when the allotment of visas was gobbled up on the first day. "In our industry a lot of companies didn't exist or were much smaller back then," he notes.                          From the point of view of the tech companies, the increase makes urgent sense. Why shouldn't U.S. companies -- rather than their competitors -- be able to reap the talent rewards of all those foreign students graduating from American universities? (Foreigners with post-graduate degrees will be exempted from all caps under the proposal.) And why should we encourage high-tech firms to move operations to, say, Canada because our immigration rules are too strict?                      The senators sponsoring the bill -- including Republicans Orrin Hatch and Marco Rubio, and Democrats Amy Klochubar and Chris Coons -- say the reforms will help grow the economy. "It'll help us attract more highly skilled workers in the fields of science, technology, engineering and math," said Rubio, "which will help our unemployed, underemployed or underpaid American workers find better jobs."              Okay, but how are we enabling those unemployed and underemployed Americans to fill those jobs themselves? The bill includes a $1,000-per-visa fee that will fund a program to help states produce more students with science and math skills. But that's for future workers. Moreover, the fund seemed tossed in as an after-thought -- when its intent should be at the center of an urgent national conversation...


DHS Purchases 21.6 Million More Rounds of Ammunition - Federal agency has now acquired enough bullets to wage 30 year war - Infowars.com - February 7, 2013 - ...

A solicitation posted yesterday on the Fed Bid website details how the bullets are required for the DHS Federal Law Enforcement Training Center in Artesia, New Mexico.                   The solicitation asks for 10 million pistol cartridge .40 caliber 165 Grain, jacketed Hollow point bullets (100 quantities of 100,000 rounds) and 10 million 9mm 115 grain jacketed hollow point bullets (100 quantities of 100,000 rounds).                       The document also lists a requirement for 1.6 million pistol cartridge 9mm ball bullets (40 quantities of 40,000 rounds)....                    While Americans are being browbeaten with rhetoric about the necessity to give up semi-automatic firearms in the name of preventing school shootings, the federal government is arming itself to the teeth with both ammunition and guns. Last September, the DHS purchased no less than 7,000 fully automatic assault rifles, labeling them “Personal Defense Weapons.”

US Economy Contracts - More Cuts Will Mean Even Less Growth - John Weeks

Newsletter about the City Council meeting of February 5, 2013

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 2/5/2012 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.

City Website has changed - Here is a link to the City of Hickory Document Center

All materials and maps for this meeting are provide at this link: 

 City Council Agenda - February 5, 2013 - (33MB PDF)






Invocation by Rev. Charles Kyker, Pastor Christ Church

Special Presentations
A. (3:30) Presentation of Deputy City Clerk Sarah Prencipe and Administration of Oath of Office

B. (5:25) Presentation by Mr. Mack McLeod, Parks and Recreation Director, Zahra Baker Playground - The Playground is featured in the Playword Systems product catalog featuring public playgrounds including school, public park, community private, and inclusive playgrounds. Mack  showed slides related to the playground and read information provided about the playground in the catalog. The Zahra Playground is listed as an inclusive playground. Mack passed out the catalogs to City Council members. 375,000 of these catalogs are being distributed.


(11:55) - The Mayor made a motion to allow Citizens to address items on the agenda.

 (12:20) - the minutes of the Subcommittee on Citizen Input are approved.

Consent Agenda: (13:20)
A. Approval of a Transfer of a Cemetery Deed from Leslie Jo Stogner to Michael F. Gallagher in Oakwood Cemetery

B. Request Acceptance of the Fire House Subs Public Safety Foundation Grant for Two Thermal Imaging Cameras, in the amount of $14,200. - The City of Hickory Fire Department identified a grant process that had not been utilized for some time in the department. Captain Todd Frizsell developed and wrote a grant which was submitted on November 19, 2012. The Fire House Subs Public Safety Foundation notified Captain Frizsell on January 2, 2013 that the Hickory Fire Department had received the grant for the two thermal imaging cameras, which are valued at $14,200. These cameras will be used on engine companies as a tool that will allow firefighters to see areas of heat through smoke and darkness. These cameras will help firefighters find victims, locate hotspots, and recognize potential structural dangers.

C. Request Approval to Submit a Proposal for Funding Smoke Alarms, Carbon Monoxide Alarms, Safe T Elements through the Department of Homeland Security Assistance to Fire Fighters Fire Prevention and Safety Grant for 2012. - The City of Hickory Fire Department request approval to submit a grant to the 2012 Fire Prevention and Safety Grant process for acquiring smoke alarms, carbon monoxide alarms, Safe T elements, and a part-time position to continue one of the department’s life safety programs. The grant request is for $59,205, of which 10% matching funds, $5,920, is expected to be provided by the City. These matching funds will be taken from the fire department’s Departmental Supply line item account. The alarm program offers residents of Hickory a means to obtain alarms; it also provides an opportunity for the department to provide a higher level of awareness of the hazards and risks in residential occupancies.

D. Special Event/Activities Application for Hickory’s Oktoberfest 2013, Connie Kincaid, Hickory Downtown Development Association, from October 11 – 13, 2013 from blocks with the boundaries of 3rd Street NW, Government Avenue SW, Center Street and 2nd Avenue NW.

E. Special Event/Activities Application for Charity Chase Half Marathon, Mandy Pitts, Charity Chase Half Marathon Committee Co-Chair, on June 1, 2013, 4:00 a.m. to 2:00 p.m., 13.1 miles in Hickory with start and finish on Main Avenue between 3rd Street and 4th Street NW.

F. Special Event/Activities Application for Hickory Youth Council Anti-Bullying Concert, David Leonetti, Community Development Manager, on April 26, 2013, 4:00 p.m. to 10:00 p.m., Union Square. Various teen bands will be performing.

G. Proclamation for Entrepreneurship Week, February 16-23, 2013.

H. Approval of a Request from the Hickory Metro Sports Commission to Relocate the Catawba County Sports Hall of Fame to Highland Recreation Center at Stanford Park. - The Catawba County Sports Hall of Fame is organized and managed by the Hickory Metro Sports Commission. The Hall of Fame, which inducted its first class in 2001, was originally located at Catawba Valley Community College and is presently housed at the Hickory Metro Convention Center. The Catawba County Sports Hall of Fame currently has 52 members displayed and has outgrown its current location. The Hickory Metro Sports Commission’s Board of Directors, request the City of Hickory’s permission to relocate the Catawba County Sports Hall of Fame to Highland Recreation Center. The Hickory Metro Sports Commission would provide all plaques and signage, with Parks and Recreation staff only being responsible for installation of the plaques. The Parks and Recreation Commission considered and approved the requests at their January 8, 2013 meeting.

I. Call for a Public Hearing – Contiguous Voluntary Annexation of 2.88 Acres of Street Right-of-Way located at 13th Avenue Drive SE and 21st Street Lane SE, Hickory. (Authorize Public Hearing for February 19, 2013)

J. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-01 for the Property Located at 330 21st Street SE. (Authorize Public Hearing for February 19, 2013)

K. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-02 for the Property Located at 526 17th Street NW. (Authorize Public Hearing for February 19, 2013)

L. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-03 for the Properties Located at 1425 3rd Street Place NE, adjacent vacant lot, and 339-345 14th Avenue NE. (Authorize Public Hearing for February 19, 2013)

M. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-04 for the Property Located at 2206 Tate Boulevard SE. (Authorize Public Hearing for February 19, 2013)

N. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-05 for the Properties Located at 3661 16th Street NE, 3703 16th Street NE, and 1515 Cloninger Mill Road. (Authorize Public Hearing for February 19, 2013)

O. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-06 for the Property Located at the Northeast Corner of the Intersection of Cloninger Mill Road NE and North Center Street (NC 127). (Authorize Public Hearing for February 19, 2013)

P. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-07 for the Property Located at the Southeast Corner of 29th Avenue Drive NE and 16th Street NE. (Authorize Public Hearing for February 19, 2013)

Q. Call for a Public Hearing – For the Consideration of Rezoning Petition 13-08 for the Property Located at 2633 Springs Road NE. (Authorize Public Hearing for February 19, 2013)

R. Approval of an Inter-Local Contract for Cooperative Purchasing through the Houston- Galveston Area Council (HGAC) located in Houston, Texas.- The Houston-Galveston Area Council (HGAC), located in Houston, Texas, has provided participating municipalities throughout North Carolina and the United States the opportunity to purchase items through an inter-local contract of cooperative purchasing. The HGAC has provided products awarded by virtue of a public competitive bid process for over 30 years. They specialize in products utilized by public safety, public works, and communications. Their process gives government entities access to volume purchasing and discounts.

S. Resolution Approving an Installment Financing Contract and a Deed of Trust on the Hickory-Catawba Wastewater Treatment Plant with PNC Bank for $9.9 Million @ 2.27% Interest For a Term of 15 Years.

T. Budget Ordinance Amendment No. 12.
1. To budget $390 of Library donations from several donors in the Library Books line item.
2. To budget a $2,000 Library donation from Friends of the Library in the Programming line item ($1,000) and in the Audio Visual line item ($1,000).
3. To appropriate $2,873 of General Fund Balance (Funds reserved from the State of North Carolina Un-Authorized Substance Tax revenue) and budget in the Police Department's Departmental Supplies line item. This amendment is necessary to purchase DARE (Drug Abuse Resistance Education) T-shirts for the students who are completing the DARE programs in the Hickory City School System. Funds are made available to the Police Department from the State and remain in General Fund Balance until appropriated.

New Business - Departmental Reports:
1. (14:25) Approval of Historic Preservation Fund Grant Application for (former) Ridgeview Public Library in the amount of $13,579. - As a Certified Local Government, the City of Hickory and nonprofits within the city are eligible to apply for grants from the State of North Carolina to undertake a variety of different projects to advance historic preservation in communities throughout the State. Inter-Faith Housing Development Corporation plans to apply for a grant to assist in their restoration of the (former) Ridgeview Public Library for use as a community meeting space and history center. The estimated project cost is $22,632. The grant request is for $13,579 with the additional $9,053 in local match funds coming from Inter-faith Housing Development Corporation funds. No additional funding from the City of Hickory is required for the grant project. However, City approval is required for the application to move forward because the project is located within the City’s jurisdiction.

2. (27:45) Approval of Vacant Building Revitalization and Demolition Grant Agreement for LNBC, LLC in the Amount of $20,000. - City Council established the Vacant Building Revitalization and Demolition Grant program on September 16, 2008. The program was modified in late 2011 and provides funding up to $20,000 to projects seeking to demolish deteriorated commercial and industrial buildings. LNBC, LLC has applied for a Vacant Building Revitalization Grant in the amount of $20,000 to assist in the demolition of the former Regency Motel located at 483 Hwy 70 SW. After demolition, the applicant will market the property for future development. The Business Development Committee reviewed the application and voted to recommend approval at their January 16, 2013 meeting.

 

3. (33:05) Approval and Acceptance of Bid and Award of Construction Contract to Advanced Development Concepts, LLC (ADC) for the Horseford Creek 20-Inch Waterline Replacement/Relocation Project (COH-PPUD 13-004) in the amount of $579,845. - The Public Utilities Division annually identifies infrastructure in need of replacement or rehabilitation, as appropriate, as a component of the Department’s sustainability programs. The Horseford Creek waterline is a 20-inch waterline which was installed in the early 1950’s. This waterline is one of the main water transmission mains for the City of Hickory as this waterline serves two elevated water storage tanks that serve a large portion of the City of Hickory Public Utilities Division’s service area. Staff recommends acceptance of bid and award of the construction contract to Advanced Development Concepts, LLC (ADC) in the amount of $579,845 for the Horseford Creek 20-Inch waterline replacement/relocation project. This is a budgeted project in FY 12-13 Capital
Budget for the Public Utilities Division.

4. (41:30) Quarterly Financial Report

● Resolution Approving an Installment Financing Contract and a Deed of Trust on the Hickory-Catawba Wastewater Treatment Plant with PNC Bank for $9.9 Million @ 2.27% Interest For a Term of 15 Years. Second Reading is required to meet Local Government Commissions’ timeline for approval.

Citizens Requesting to be Heard
(56:05) Jimmy Davis says he is glad to see something done for the Ridgeview community and asks questions about the expansion of the current Ridgeview Library. He wants to know when that will be back to the forefront. He wants to know who is going to get the contracts to do the work on the Old Ridgeview Library. He wants the monies to be kept local.


The Hound - Not really much to say about this meeting. Warren's presentation shows that the Hickory community is still basically at a standstill. We can see that the Real Estate/Property Depression is not improving. We can see that the promotion/talking point of low property taxes is what is continuing to be touted, but it is obvious that this has not improved the community. We all know that the decimation of our manufacturing base is what has created the existing conditions. Private Enterprise is what will have to bring that back, but government (especially local) is going to have to create the conditions necessary to help facilitate the necessary conditions and processes to move forward towards a manufacturing renaissance.

Hickory City Council Meeting - February 5, 2013 - Video Presentation

The following is a video presentation of the Hickory, NC City Council Meeting of January 15, 2012. The most relevant topics of this meeting:

Presentation by Mr. Mack McLeod, Parks and Recreation Director, Zahra Baker Playground

Approval of Historic Preservation Fund Grant Application for (former) Ridgeview Public Library in the amount of $13,579

Quarterly Financial Report presentation by Asst. City Manager Warren Wood

Citizen's Requesting to be Heard: Jimmy Davis addresses the Council

Old Ridgeview Library Museum Project

Demolition of former Regency/Howard Johnson's Motel

 

Horseford Creek Waterline

Quarterly Financial Report (October - December 2012)

Economic Stories of Relevance in Today's World -- February 3, 2013

Shocking Numbers That Show The Media Is Lying To You About Unemployment In America - The Economic Collapse Blog - Did you know that the percentage of the U.S. labor force that is employed has continually been falling since 2006 according to the Bureau of Labor Statistics? Did you know that the increase in the number of Americans "not in the labor force" during Barack Obama's first four years in the White House was more than three times greater than the increase in the number of Americans "not in the labor force" during the entire decade of the 1980s? The mainstream media would have us believe that 157,000 jobs were added to the U.S. economy in January. Based on that news, the Dow broke the 14,000 barrier for the first time since October 2007. But if you actually look at the "non-seasonally adjusted" numbers, the number of Americans with a job actually decreased by 1,446,000 between December and January. But nowhere in the mainstream media did you hear that the U.S. economy lost more than 1.4 million jobs between December and January. It is amazing the things that you can find out when you actually take the time to look at the hard numbers instead of just listening to the media spin. Back in 2007, more than 146 million Americans were employed. Today, only 141.6 million Americans are employed even though our population has grown steadily since then. When the government and the media tell you that we are in a "recovery" and that unemployment is lower than it was a couple of years ago, I encourage you to dig deeper. The truth is that even the government's own numbers tell us that the percentage of the U.S. labor force that is employed continues to fall and that the U.S. economy is heading into a recession. The Obama administration and the media have been lying to you about unemployment and about the true condition of our economy. After you see the numbers that I have compiled in this article, I think that you will agree with me.                              First of all, let's take a look at the percentage of the civilian labor force that has been employed over the past several years. These numbers come directly from the Bureau of Labor Statistics. As you can see, this is a number that has been steadily falling since 2006...    2006: 63.1     2007: 63.0    2008: 62.2    2009: 59.3    2010: 58.5    2011: 58.4...                  In January, only 57.9 percent of the civilian labor force was employed....                  That number has risen by more than 8 million since Barack Obama first entered the White House, and that is highly unusual, because the number of Americans "not in the labor force" only increased by 2,518,000 during the entire decade of the 1980s....


Fewer Americans count on retiring by 65 - Life Inc. on Today - Allison Linn - January 31, 2013 -  If you’re planning to work past age 65, you may find that you have a surprising amount of company among your peers.                         A larger chunk of Americans are working into their late 60s and even beyond, part of a long-term trend that has continued despite the tight job market of the past five years and is expected to increase in coming decades.                        “It’s one of the most important changes in the labor force over the last generation,” said Richard Johnson, director of The Urban Institute’s Program on Retirement Policy.                  Most Americans still stop working by the time they hit 65. But about 18.5 percent of Americans age 65 and over were working in 2012, according to the Bureau of Labor Statistics. That’s a nearly 8 percentage point increase from a low in 1985, when just 10.8 percent of Americans over age 65 were still at work.                   The trend toward working past age 65 is an about-face from the decades that followed World War II. From the late 1940s through the mid-1980s, the percentage of people over age 65 who were in the labor force generally fell as workers took advantage of pensions and Social Security payments that gave them plenty of financial incentive to quit working by age 62 or even before....



Duke Energy to close Riverbend, Buck plants in April - The Charlotte Observer - Bruce Henderson - February 3, 2013 - Duke Energy will close two of its oldest coal-fired power plants, Riverbend west of Charlotte and Buck in Rowan County in April, two years ahead of schedule.
Both plants date to the 1920s and had been planned for retirement in 2015. They’re among a wave of older, smaller coal plants closing down rather than investing in new pollution controls to meet federal environmental regulations.                         The plants had been little used in recent years as larger, more efficient plants came online and falling natural gas prices shifted generation to gas.
Efficiencies in Duke’s management of a larger power plant fleet, following its merger last year with Progress Energy, also contributed to the early retirements, the company said.                     “These stations played pivotal roles in the 1920s and 1930s in helping to electrify the industries and homes of the Carolinas, and we honor all those employees who contributed their time and talents over the years to ensure safe, reliable operations,” Keith Trent, chief operating officer of Duke’s regulated utilities, said in a statement.....                           Duke said it would try to find new positions within the company for the 65 people who work at Riverbend and Buck.


Kraft: No more Cracker Barrel grocery products - The Tennessean - Duane Marsteller - February 3, 2013 - Consumer foods giant Kraft Foods is suing to block Cracker Barrel Old Country Stores from selling a new line of branded products in grocery stores.                   Legal experts say a Kraft victory could threaten the restaurant chain's brand expansion efforts if a resolution isn't reached.                      Kraft said it has sold cheese products branded "Cracker Barrel" in grocery stores for nearly 60 years, and that the Lebanon, Tenn.-based restaurant chain's planned move into supermarkets would unfairly infringe on that trademark, according to a federal lawsuit filed Thursday in Chicago.                    "(The chain's) actions threaten to destroy the substantial goodwill that Kraft has created in its Cracker Barrel trademark, and to create significant confusion and cannot be permitted," the lawsuit said.                           Cracker Barrel said Friday that it's reviewing the lawsuit but otherwise had no immediate comment.                         The chain already sells various food products, such as cornbread mix and pancake syrup, under its name exclusively through its retail stores and on its website. Kraft said it never objected to the practice because of that limited availability.                        That changed in November when Cracker Barrel signed a licensing agreement with John Morrell Food Group to sell Cracker Barrel-branded food products through grocers, mass merchandisers and other retail outlets.



Rising beef prices threaten $1 McDouble - Reuters - Lisa Baertlein – February 2, 2013 - McDonald's popular $1 McDouble cheeseburger, which has lured customers to the Golden Arches since 2008, is getting hard to sustain as rising beef prices threaten the company's profit margin....                            The dilemma for McDonald's Corp restaurant operators is that the McDouble has the highest ingredient costs on the Dollar Menu, making it a bad financial proposition unless customers add high-margin sides such as french fries or soda.                          "If the McDouble is all the customer buys, you lose money," said Richard Adams, a former franchisee who now advises the chain's restaurant operators. "Depending on what happens to beef prices, McDonald's management should be open to taking the McDouble off the Dollar Menu."                         The decision would be a significant one. McDonald's gets 10 to 15 percent of its sales from the Dollar Menu and experts say the McDouble is one of the most popular items on it....                             The Dollar Menu food and marketing changes are part of McDonald's plan to stop two consecutive years of margin declines at its 14,000 U.S. restaurants. They come as new McDonald's Chief Executive Don Thompson sharpens the company's focus on its famed Dollar Menu to lure cash-crunched diners and fend off resurgent rivals such as Yum Brands Inc's Taco Bell chain and Burger King Worldwide Inc .
They also hint at strategies that U.S. restaurants could use to contain the damage from higher beef costs. McDonald's has a history of shaking up the Dollar Menu lineup in response to food cost spikes.....                            Beef prices are expected to rise above recent highs and to stay high for at least the next two years as the effects of last summer's historic U.S. drought ripple through the food system, said Jim Robb, an economist at the Livestock Marketing Information Center.
Ground beef prices already are up 6 percent to 8 percent so far this year, said John Davie, CEO of Consolidated Concepts, a firm that helps restaurants negotiate purchases.                              To be sure, McDonald's is known for using its massive size to squeeze better prices out of suppliers. The company forecast commodity inflation of just 1.5 percent to 2.5 percent this year for its U.S. business, far less than the National Restaurant Association's expectation for 2013 wholesale food price inflation in the low 4 percent range.                            But analysts are skeptical that McDonald's can control rising prices as well as it thinks, meaning there could be even more pressure on the McDouble's bottom line....


Audit shows North Carolina wastes millions on Medicaid - WTVD 11 - Durham, NC - 
RALEIGH, N.C. - January 13, 2013 -  Governor Pat McCrory and State Auditor Beth Wood held a rare joint news conference Thursday to discuss the findings of a scathing audit commissioned by the General Assembly about North Carolina's Medicaid program.                   Legislators directed Wood's office in last year's budget bill to conduct a performance audit of the Division of Medical Assistance and the Medicaid system it runs. Medicaid provides health coverage for more than 1.5 million North Carolina residents - most of them poor children, older adults and the disabled - and spends $12 billion in state and federal funds annually.                     Wood said she found hundreds of millions of dollars in Medicaid cost overruns because of administrative inefficiency, lack of oversight of contracts, lax cost-control and cost-management measures and disjointed accounting practices that have led to inaccurate financial projections.                           Click here to download Wood's audit (.pdf).
The audit shows the state is spending nearly 40 percent more than the national average just to administer Medicaid, and that's costing taxpayers an extra $180 million a year.                      Last year, the state's Medicaid program was $1.4 billion over budget. It was the same in 2011, and even more in 2010.                     "The people of North Carolina have sent us here to fix broken system and that's what we're going to do.  These issues should be of concern to everyone.  This is taxpayer money," said McCrory...


Medicaid bureaucracy pinching some NC group homes - WRAL - Raleigh, NC - January 29, 2012 - The operators of adult group homes across North Carolina report increasing delays in the Medicaid reimbursements that they depend on to keep their doors open.                   The delays result from a combination of a new billing system the state implemented this month and a growing backlog of appeals by people seeking to retain their Medicaid coverage under new eligibility rules.           As of Jan. 1, group home residents were no longer eligible to receive Medicaid payments for personal care services, such as assistance with bathing, feeding or other daily chores. Federal regulators pushed for the changes to ensure the same personal care eligibility standards exist for people no matter where they live, instead of having rules that may steer people toward institutional care.                         The new eligibility requirements came with new Medicaid billing forms that operators say are more complex, and some providers aren't filling them out correctly or completely. That means their reimbursements are held up until the paperwork errors are fixed.                    "No one really knows what's going on and what we should do about it," Jenny Gadd, manager of Booth Road Group Home in Chatham County, said Tuesday......


Some families to be priced out of health overhaul - WWLP - Springfield, Massachusetts - January 30, 2013 - Some families could get priced out of health insurance due to what's being called a glitch in President Barack Obama's overhaul law. IRS regulations issued Wednesday failed to fix the problem as liberal backers of the president's plan had hoped.                  As a result, some families that can't afford the employer coverage that they are offered on the job will not be able to get financial assistance from the government to buy private health insurance on their own. How many people will be affected is unclear.                    The Obama administration says its hands were tied by the way Congress wrote the law. Officials said the administration tried to mitigate the impact. Families that can't get coverage because of the glitch will not face a tax penalty for remaining uninsured, the IRS rules said.                          "This is a very significant problem, and we have urged that it be fixed," said Ron Pollack, executive director of Families USA, an advocacy group that supported the overhaul from its early days. "It is clear that the only way this can be fixed is through legislation and not the regulatory process."                But there's not much hope for an immediate fix from Congress, since the House is controlled by Republicans who would still like to see the whole law repealed.                    The affordability glitch is one of a series of problems coming into sharper focus as the law moves to full implementation.                   Starting Oct. 1, many middle-class uninsured will be able to sign up for government-subsidized private coverage through new health care marketplaces known as exchanges. Coverage will be effective Jan. 1. Low-income people will be steered to expanded safety-net programs. At the same time, virtually all Americans will be required to carry health insurance, either through an employer, a government program, or by buying their own plan.                  Bruce Lesley, president of First Focus, an advocacy group for children, cited estimates that close to 500,000 children could remain uninsured because of the glitch. "The children's community is disappointed by the administration's decision to deny access to coverage for children based on a bogus definition of affordability," Lesley said in a statement.                       The problem seems to be the way the law defined affordable....


Buying your own health insurance will never be the same - AP through Vitals on NBC News - RICARDO ALONSO-ZALDIVAR - January 27, 2013 -  This fall, new insurance markets called exchanges will open in each state, marking the long-awaited and much-debated debut of President Barack Obama's health care overhaul.                       The goal is quality coverage for millions of uninsured people in the United States. What the reality will look like is anybody's guess — from bureaucracy, confusion and indifference to seamless service and satisfied customers.               Exchanges will offer individuals and their families a choice of private health plans resembling what workers at major companies already get. The federal government will help many middle-class households pay their premiums, while low-income people will be referred to safety-net programs they might qualify for....


Guess Who's Driving the Demand for Rental Apartments? - CNBC - Diana Olick - January 29, 2013 - The housing market is supposedly roaring back. Home prices are seeing their biggest annual gains since 2006.                       Renters must be rushing back to buy, right?                       Not exactly.

In fact, even as housing and the greater economy improve, a shift in demographic trends will likely favor the rental apartment market for the foreseeable future. It is all about women.                     "I rent in an apartment building because it gives me a certain amount of freedom: I'm not positive that I want to stay in D.C. long term so I could leave at year's end if I wanted to," says 25-year-old Caitlin Huey-Burns, a working journalist. "My building has nice, built-in amenities, and it's in the location I want, but where I know I wouldn't be able to afford to buy.".....                      
No, according to a recent Raymond James report:

Renter household formation remains at the strongest level in decades. Roughly 1.32 million new renter households were formed in the past year (including owner conversions), while the number of owner-occupied households declined by 175,000. Resident turnover and move-outs to homeownership remain near historic lows for most operators. Incoming leasing traffic is more than offsetting move-outs while paying higher rates.

The home ownership rate declined yet again in the fourth quarter of 2012, according to a new report from the U.S. Census today. It now stands at 65.4 percent, down from 66 percent a year ago and from a high of 69.2 percent in 2004. If you include the 5.3 million borrowers who are delinquent on their mortgages or in the foreclosure process, per Lender Processing Services, the real home ownership rate is even lower.....


Economy Could Be 'Significantly Worse' Than US Says - Money News - January 30, 2013

Morganton Grace Hospital Billing Practices - WBTV - Richard Garrison

Richard Garrison is a reporter for WMNC "The Big Dog" radio in Morganton. Richard covers the Hickory-Lenoir-Morganton Metro area. He regularly attends both Hickory and Morganton City Council meetings and we correspond frequently about issues in the area. Richard is his own man and he is someone who I respect greatly, because of his forthrightness.

The other night Richard was on WBTV news at 11pm. The following is the story relating to his ongoing battle with Morganton's Grace Hospital involving their billing practices. Richard had a very negative experience with the hospital when his mother died and the hospital was ambivalent about their business practices and Richard believes that there is a pattern here and it certainly does look like there is a pattern here.

WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC


PSI: Medical bills are a prescription for confusion - WBTV - Jamie Boll - January 31, 2013 - MORGANTON, NC (WBTV) - Richard Garrison didn't know it at the time, but when his phone rang one day last summer, he was about to lose his mother.

"She had fallen in the driveway," said Garrison.

Jean Garrison who was a nurse before retiring had hit her head, but she didn't go to the hospital until the next day, when Richard came home to find her on the couch.

"I said 'Mom, how you doing?' No response," said Garrison.

She was rushed by ambulance to Grace Hospital in Morganton, then flown to Carolinas Medical Center in Charlotte.

"She passed away about 4:30 that afternoon," said Garrison.

His grief was compounded by the stress of trying to understand the medical bills. The bill from Grace Hospital alone topped $9,000.

"All this for essentially less than two hours at Grace Hospital," said Garrison.

Medicare was paying for almost all of it. Or was it?

"You really don't even know what was actually paid," said Sen. Jeff Tarte.

Tarte, a freshman state senator from Cornelius, doubts anyone came close to paying the $9,000. He knows a thing, or two about the health care industry. He's consulted hospitals on how to set prices.

"The financial model in health care, and I've been doing this work for almost 35 years, is completely broken," said Tarte.

Not only that, it is rife with error. It's been estimated as many 80% of hospital bills have mistakes.

"Doesn't surprise me," said Tarte.

What other business could get away with that? Tarte says none. So, why do we accept it, in what is the most important business we use?

"Nobody has the ability to audit with a degree of accuracy," said Tarte.

So, if experts in the field have trouble making sense of the gobbledygook that is your hospital bill, where does that leave the rest of us?

"98% of the population has no possible way just to look at (charges) and know if that's reasonable or not," said Tarte.

"You have to pay attention," said Dr. Michael Matthews.

Matthews teaches health care administration at Winthrop University in Rock Hill, SC. He agrees medical bills are way too complicated, but he say you're not helpless.

"Mistakes come in a multitude of areas," said Matthews.

He says he's seen them in bills for his own family. He says he's seen charges for pills never give, services never provided and tests never done. Is it malice? Is it like a mechanic try to sneak in an unnecessary repair?

"No, no, no," said Matthews. "Health care is so complex. There are so many people getting their hand on the medical bill (and) with that many hands, with human error, you are bound to have a mistake."

It's why Matthews says you should examine your itemized bill closely. He says make sure everything you're being charged for was actually done and billed for correctly. He also says compare the prices to what you find on popular web sites like healthcarebluebook.com

"It will give you a rough estimate of what a procedure should cost," said Matthews.

He says with so much cost shifting going on to cover people who can't pay, it's an important tool as you enter what is really a negotiation over your bill.

"Be courteous, be respectful and be prepared to discus the specific issues and you'll get a lot better response," said Matthews.

As for the $9,000 Garrison bill, Sen. Tarte was correct. No one paid the full amount. Grace Hospital says Medicare only paid a small fraction, probably less than $2,000. Garrison, who says the entire ordeal has been stressful, paid the remaining $320.

Grace Hospital in a written statement said, "We understand and regret that billing for hospital and other medical services is so complex. The variety of providers, settings, treatments and coverage plans involved in the care a patient receives can make billing confusing."

The statement from Jerry Davis, Vice President of Blue Ridge HealthCare, which owns Grace Hospital goes on to say, "We encourage patients to be in touch with us as soon as possible if they have questions, or need information about their bill or about financial assistance. There are often ways we can help, but it begins with that contact."

The billing system is complex. It's also important to note private insurers don't pay full cost either. In fact, each insurer likely pays something different for the same exact service. The price is based on its contract with the provider.

Tarte says it's time to do something about this broken pricing model. He says he'll be working to get the major players involved at the table to start work on simplifying the billing system.

City Branding: More than Just a Logo and a Tagline? - From WNCT News in Greenville, NC featuring our City Manager Mick Berry

I have family who live on the coast and they saw this and sent the link to me.


City Branding: More than Just a Logo and a Tagline?
WNCT - Greenville, NC
Jonathan Rodriguez | 9 On Your Side
Published: January 31, 2013
Updated: January 31, 2013 - 7:03 PM



GREENVILLE, N.C. (WNCT) – Branding. You see it everywhere. It’s been proven that logos and slogans can be used to market just about any product or service, but can it work for a city?

That’s where North Star Destination Strategies comes in.

"It’s competitive out there. Communities need to work to be as competitive as they can be,” explained Don McEachern, CEO of North Star, based in Tennessee.

He says they've worked with more than 150 communities, giving cities not just a catchphrase, but an identity.

"It’s more than just a logo and a line,” McEachern said, “you’re spending money and resources already marketing your community so it just makes good sense to make sure your spending those dollars and those efforts are working as hard as they can."

It’s all in an effort to bring in new business.

Greenville, New Bern, and Jacksonville are hiring North Star to get them branded.

"We’re trying to make Greenville more attractive for companies to locate here and bring jobs to our community,” said Greenville Mayor Allen Thomas

"I do a lot of traveling and most people I run into in other states have never heard of New Bern,” explained Alderman Dennis Bucher.

So how much will it cost?

Each city is paying between $80,000 and $90,000 taxpayer dollars.

A lot of people in the community say they think it could be a good idea, but were very concerned about the price. So 9 On Your Side went looking for proof.

We talked to Mick Berry, city manager of Hickory,North Carolina. They hired North Star about two years ago. Their brand is “Life. Well Crafted.” We asked if it was worth the money.

"Absolutely,” said Berry, “I know it is pricey when you’re spending, in our case about, $80,000 that did raise some eyebrows. But when you look at the overall value of a community, when you talk about having a tool to market your community to the broader world, it's a very small fraction of the overall value of that community."

But will bring tangible results?

“That’s a fair question and it's a hard question to answer when you talk about tangible results. We’ve had a number of new businesses come here to Hickory, we’ve had success in recruiting new events in our convention center, even activity at our airport. Can you say that that was purely because we have this very crisp branded message? No. They're coming for a lot of other reasons as well, but it just helps you in your sales pitch. We’re a unified community, we understand who we are, life is well crafted in Hickory, and it just helps you with the message. It’s kind of just the icing on the cake you need in a very competitive world,” explained Berry.

He says it will take a full community effort to get the brand to work. But with this deal, there's no "money back guarantee" so cities have to wait and see if it was money well spent.