Survival
Here we are for the fifth consecutive year attempting to characterize where Hickory's Economy and Culture are at moving through the year 2013. Once again we look at where we have been and where the trends show us heading. I have spent the past year speaking with people from across the cultural and socio-economic strata of our area and I will relate to you the collective story that comes forward from my perspective.
This past year was another year of stagnation in this community. The economy relatively did not grow in anything other than an anecdotal way.. Sure there have been a few businesses that moved to the area, but for every business venture created there have been an equal number or more that are no longer with us.
It seems that the new types of businesses that have come into existence in our community are the "Thrift" types of businesses. I am not saying that this is good or bad. I am just pointing out that there are many businesses that sell second hand, close out, overstocked or consignment goods in our community. They have always been here, but they are prevalent in the community to a greater degree than ever. Why have we seen a proliferation of such businesses?
In the current economy people are obviously looking to cut out waste, cut costs, and stretch dollars. Not too long ago people would throw possessions away without a second thought. Now people will look to sell items/assets that they no longer need and take the money obtained to buy things that they currently need. People are being forced to take a long look at their finances and decide what are necessities and what are extras.
Such a mindset might be wise in the long run, but it does not bode well for the short term prospects of an economy. As many of you know, I work as a Chef. During the Boom years people threw Grand Parties at my Aunt's Restaurant and functions we catered to. Whether Private or Corporate Affairs, people asked for the finest foods to be served in the finest settings under the finest of circumstances. It wasn't unusual for people to spend thousands of dollars on a party. Those types of extravaganzas have died out for the most part in this community. They were actually one of the first victims of this downturn.
As this community has aged what we have seen in Restaurant and Hospitality is more older people sharing or ordering half portions. Customers demand even greater service, but ticket/cover averages are way down. In the restaurant business, we are seeing people working harder to try to maintain income at the same time that costs have sky rocketed. I am sure that this is the same in most businesses and this is not an optimistic climate. It is about hanging on. It is about Survival. What is most stressful is to have the feeling that the worst is yet to come.
The Calm before the Storm
Have you ever been in a Hurricane? I have been in a couple.
I'm not talking about sitting hundreds of miles inland. I am talking about being a mile or so from the shoreline. You see the thing forming out in the Atlantic and it starts creeping your way. You can't get all distraught about it, but you have to pay attention. You have to remain vigilant. It can turn away, but there comes a point where you know that you are going to have to deal with it. You'll have to batten down and make sure you have provisions. You'll have people fretting like it is the end of the world and others acting like it's just going to be a shower. There is always a surreal anticipation that accompanies every storm.
Much like those Hurricanes, there seems to be an eerie calm in this community. It's like living in a different dimension. The world seems to go about it's business as if things are OK while you can see and sense that they aren't. Eventually, Interest Rates will have to Rise and when they do the Federal Government will not be able to service the interest on the $16 trillion (and growing by leaps and bounds) debt and will be forced to accelerate the money printing or go ahead and default, which will mean the end of the current dollar. Whichever happens, you will understand that the complacency that has gone on for years cannot be sustained on this mirage. A million times Zero Equals?
In this community, we have acted as though if we just don't make any substantial expenditures, then everything will work out when the economy turns around. What people have taken for granted is that this is a normal business cycle and eventually it will turn around. I am going to tell you. and I have told you for years, this is not normal... this is the new normal. You can cut your costs to zero, and we are to the point of cutting into the bone, but it doesn't mean you are going to make a penny to save a penny. In order to grow an economy you have to invest in it. Where do you invest? You invest in real people. You invest in the middle class.
The community isn't making anything off of the investments it has sitting in T-Bills and other Money Market instruments. As a matter of fact much of this money is being used against us. It is being utilized by the hyenas on Wall Street to off shore our jobs and build up China's economy and this is only exacerbated by the Federal Government's debt to China. Go on the internet and look at the Financial Capitals in China (Shanghai and Hong Kong) or the Middle East (Dubai). Go look at the videos. You see 100 times the development there that you do in any of the American cities. Check out the modern structures they are building off of the debt of our economy.
My cousin lives in South Charlotte. I hear about Charlotte's problems. In the couple times I have had a chance to get to Charlotte over the last year, it is easy to see that it is continuing to grow. New projects are happening currently even if not at the pace they were in the '90s and '00s. The key is that they have continued to take ownership of their economy and they are not complacent. It is called Grow or Die... Move Forward or Die.
And/Both
I can see the realities as well as anyone. There is currently no velocity to our local economy. This malaise has fed off of itself. Our local economy is devouring itself. The reality is that income is stagnant, but there is inflation in the pipeline. As a community we need to help people understand the necessity to hedge against the realities of inflation, while preparing and attuning themselves towards opportunities.
To hedge against the current economic realities, which will in the aggregate only get worse, we need to lighten the load and become as mobile as possible. If you can voluntarily sell an asset today, then you might get something out of it. If you don't have the income to pay your bills and you find yourself in a bind; you might just be forced to liquidate that asset in the future and you will get a lot less, to nothing, for it. Also, in an inflationary environment that asset is going to lose value compared to the currency, especially if it isn't a necessity. Having no major debt will increase your quality of life. You can take a load off your shoulders by reducing expenses. If you are having a tough time meeting your mortgage payments and it is causing you anxiety, then you should try to sell your house. If you can't sell it, then there is nothing wrong with walking away from it. There is no reason to be forced into playing a losing hand.
By the same token, I believe that one of the major reasons you should stay out of debt to become more mobile is that you might want to leave this community. If the people at the top of the food chain in Hickory aren't willing to reinvest in their ecosystem, then it is time to get out of their way and let them have it. That is what the young people (the millennials) are doing. As I have pointed to on this blog, the younger generations have chosen to go where the money is. They don't seem to care about having possessions that weigh them down or to live in houses and have mortgages that weigh them down. If they don't like it here, they are more than willing to go there. Maybe there is a lot to learn from that paradigm. You don't have to accept the Race to the Bottom. You don't have to accept failure.
Failure
I understood at a young age that no one was going to help me.... as a matter of fact people were going to stand in my way and be impediments towards my success... That if I fail it isn't on them, It is on me, because part of my task is to move these impediments out of the way.
You have people in this life that actually make an effort and then you have impediments. These people who impede progress don't understand the obstacles that they create. They believe that they are operating with the best of intentions. They believe that they are seeking the greater good... what will be the best result for the most people. But, the reality is that they are living in denial. God determines what is best for the greater good... not any man.
Non-performance is the very definition of failure. We have had a non-performing local economy for more than a decade. I think most people will admit the realities of the local economy. The only time you hear about sunshine and lollipops is when some of the local elected officials, bureaucrats, and marketing gurus want to put a happy face on everything. Call it issues, problems, or challenges, but the reality is the same thing and semantics isn't going to change the cold hard reality.
The frustrations of many in this community come from the fact that they bring forward ideas and constantly and summarily the ideas are shot down by the local entrenched establishment. This year we came forward with the Referendum on Ward specific voting and we lost, because the establishment rallied their mind-numbed minion through what amounted to be scare tactics and ignorant innuendo. It is what it is. You learn and move forward.
...And the South side of the City of Hickory continues to fall apart. Last year I talked about actions speaking louder than words. This year we see that Actions have spoken louder than words. It is more than obvious after five years that none of the local establishment is going to do anything to uplift the areas of Hickory that have fallen on hard times. They are stuck on a notion that this will happen naturally... Some Day.
We are not going to see policies directed towards these areas of need. No capital is coming from altruistic principles. I ask where is the fundamental pride in this community? Pride through action and not words. The fundamental pride that it took to build this community and took to maintain this community for over 100 years!!!
Accepting Failure
I have heard it said by people of the greatest means in our community. Most of them tell their children that they shouldn't look to come back here after they graduate from college and the only kids that do come back here are the ones that have a path laid out for them through a family business. If you can't encourage your children to invest in Hickory and you aren't willing to invest in Hickory, then why do you think anyone else would want to invest in Hickory?
I have heard the saying "Winners never quit and quitters never win." The truth of the matter is that Winners know when to quit. We are getting down to the quick. We have lost and lost and lost and been beat down and been treated like outsiders, when this community is as much or more our birthright as those who have usurped control. Nobody has asked for anything other than a chance... an opportunity... and we are treated like second class citizens in the city where many of us were born and even more of us were raised. You want us gone, then why don't you help us leave and you can have the place to yourselves to continue doing the same ole, same ole, since many don't want to work together to make this community better.
I can't accept failure. It eats at me to live through this stagnation. To work hard just to survive with no mind that anything is going to get better. That is the reason I think and share my thoughts with the public. First of all it is therapeutic to tell this story and second of all it needs to be said by somebody. I am doing nothing wrong by telling the public how I feel and what I am observing. This isn't personal unless you want to make it personal.
The Same Ole Same Ole
You can go back and look at the previous State of Hickory messages that I have released over the last 4+ years. I have heard that some of the issues discussed on this blog are preposterous, but if you go back and read the articles, then you see that we have been a lot closer to right than wrong.
In the end, I'll leave you a thought to the wise. I wouldn't be as worried about this forum and it's message, or my message, as much as when I might choose to walk away, because at that point you will know that I have decided that this is a lost cause and it isn't worth my time. I've seen a lot of people do that over the last few years. It's becoming a trend.
The State of Hickory, North Carolina 2009 - I told you in this 2009 message, "We are losing many of our best and brightest young people in this area, because of the lack of opportunity."... "We cannot afford to turn this area into a retirement village."... "The Strategy has to be jobs."
Ted Abernathy of the Southern Growth Policies Board has been brought into Catawba County to study the issues we face and construct policies that can get our community moving forward again. One of his leading recommendations is that we are going to have to reset our Manufacturing base towards Modern realities. The Western Piedmont Council of Governments statistics confirmed both the loss of our younger generations and the exacerbated aging of the local populous.
When I wrote about these issues 4 years ago it was taboo. We had not gone into the depths of jobs losses that neared 15% U-3 unemployment by the Summer of 2009. Locals thought they had seen the worst of it when I released this State of Hickory message. We still have not recovered to the levels we were at when this message was released.
The State of Hickory - January 2010 - I told you in this 2010 message, "The idea of an Economic and Science Fair is sound. Local businesses and government can sponsor the event. We just need to get the ball going and get the word out so that folks can get started."
We have seen the formation of the Edison Project, in which Entrepreneurs submit business proposals and have mentors help them formulate plans and then come forward in a contest that awards money to the three best plans as voted on by an audience that attends the event. I take no credit in this endeavor. It is a success and that is what makes me happy. Opportunities granted... Results achieved.
"I really would like to see a point-counterpoint discussion of issues done in the Hickory Daily Record and on Hal Row's First Talk show. We need a lively and vigorous discussion of the issues and these are truly the only media forums devoted to this area. Give everyone the topics and/or questions ahead of time and let them really think about it and then let's truly go into some depth on pertinent issues. Frankly, I am sick of hearing the same ole talking points bandied about over and over and over again by the same ole usual suspects. You want to sell some papers? You want to sell some ad time? Free and Effective Content. Let's Go."
We got this with the referendum. We had several discussions and back and forth and an actual in studio debate. I can live with how the referendum vote turned out when we saw an actual real Democratic process play out for once in this community.
The State Of Hickory 2011 - I told you in this 2011 message, Trying to evolve towards modern realities - ... What I related was that we had not modernized our manufacturing structure. We had rested on our laurels and expected the future to come to us. And what we found out is that evolution did come to us, and it was a harsh reality, because we were not prepared for it. I honestly believe that we have taken more than the initial steps over the last couple of years to address many of these issues, but we cannot stop here; because if we stop, then we are going to end up right back where we were or worse.
Once again we look at what Ted Abernathy has brought to the table and it confirms the Hound's findings. I don't come up with this stuff off the top of my head. This is called research and listening.
"Economic Realities - Currently manufacturing only makes up 28% of the workforce of Catawba County. Back in 1990 manufacturing made up 56% of our workforce. The median household income for Catawba County was $40,536 as of the 2000 census. The American Community Survey shows that median household income, as of 2009, is $41,116. This means that over a nine-year period the county only saw a growth in income for households of 1.43%. Over that same time, the Consumer Price Index in the United States grew by 23%. This means that to keep up with the cost of living, the year 2000 household income of $40,536 should be $49,950.38. What happened to that $8,834? Could you not use that money today?"
"Hickory's loss of Relevance - The people who long for what Hickory was, can't understand that we can't get back to what Hickory was demographically or structurally. Their longing for what we were is destroying our future. It is destroying our capacity to change. They are longing for that furniture and textile world. We can do more manufacturing, but it is going to have to be high tech manufacturing or unique craftsmanship. We won’t be building crate furniture or producing everyday textiles."
The State Of Hickory 2012 - "Skin in the game - Conover put skin in the game with the Conover Station Project. While the City of Hickory has touted the Brownfield grants as a way to revitalize unused, blighted properties, Conover has already taken action with the revitalization of the Warlong building by retrofitting this old building towards modern realities and concerns. This building looks to be a new, modern center of economic activity in Conover. In my opinion this will end up being Conover's new Downtown with several new sites of Economic Commerce, like the Manufacturing Solutions Center, surrounding this building. Where the City of Hickory and its power brokers have demanded that Union Square must be Hickory's Downtown, Conover has decided to take a more realistic and open minded approach towards the realities of the future."
Conover and City Manager Donald Duncan have received State and national attention with what they have done with the Conover Station and this year they have moved forward with the addition of the Manufacturing Solutions Center at this site. They have taken calculated risks that look to pay off handsomely in the near term and the future. Conover is a local community moving forward and finding ways to make things happen.
"Action speaks louder than words - Look at the way Hickory is laid out. Look at its old manufacturing structures. Hickory has not been strategically designed. It is a mess the way that Hickory has been laid out and there are people who want to keep moving forward in such a fashion. That is unreasonable. As we heard at the entrepreneurial summit a few weeks ago, there has never been a normal. We have to create the future. If we do not create the future, it will be created for us by external forces. We have so much to gain by joining together in a process of structured goals and development. Sure, these plans should be able to be reassessed, but to not have plans is to set yourself up to have others determine your future!"
Scott Millar said it in the Hickory Daily Record this past weekend. We lack inventory when it comes to structures for modern manufacturing. We need buildings with ceilings that are 30+ feet high that can easily be adapted and expanded. The Old Manufactuting buildings around here have 10 to 12 foot ceilings and they are locked in and can't be easily retrofitted and/or expanded. A few of those old buildings might be salvageable for nostalgic purposes, but while they are sitting around unoccupied and while we are going through a period of no growth, then we need to encourage that some of these buildings be taken down. Some of that property would be worth more without the building and would be a lot easier to develop. We need to get to moving down that path. The sooner the better.
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Wednesday, February 13, 2013
Sunday, February 10, 2013
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.
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 - ...
US Economy Contracts - More Cuts Will Mean Even Less Growth - John Weeks
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.
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
Thursday, February 7, 2013
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.
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.
Wednesday, February 6, 2013
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
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)
Monday, February 4, 2013
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.
Economy Could Be 'Significantly Worse' Than US Says - Money News - January 30, 2013
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:
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.....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.
Economy Could Be 'Significantly Worse' Than US Says - Money News - January 30, 2013
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