Economic Stories of Relevance in Today's World -- March 16, 2014

David A. Stockman Interview on King World News - Former Director of the US Office of Management and Budget (USOMB) under President Ronald Reagan. After leaving the White House, Stockman had a 20-year career on Wall Street where he joined Salomon Bros. He later became one of the original partners at New York-based private equity firm, The Blackstone Group.
King World News Interview - March 14, 2014


19 Signs That The U.S. Consumer Is Tapped Out - The Economic Collapse Blog - Michael Snyder - March 13th, 2014 - You can't get blood out of a rock.  Traditionally the United States has had a consumer-driven economy, but now years of declining incomes and rising debts are really starting to catch up with us.  In order to have an economy that is dependent on consumer spending, you need to have a large middle class.  Unfortunately, the U.S. middle class is steadily shrinking, and unless that trend is reversed we are going to see massive economic changes in this country.  For example, in poor neighborhoods all over America we are seeing bank branches, car dealerships and retail stores close down at an alarming rate.  If you didn't know better, you might be tempted to think that "Space Available" was the hottest new retailer in some areas of the nation.  On the other hand, if you live in San Francisco, New York City or Washington D.C., things are pretty good for the moment.  But as a whole, the condition of the U.S. consumer continues to decline.  Incomes are going down, the cost of living is going up, and debts are skyrocketing.  The following are 19 signs that the U.S. consumer is tapped out...                                #1 Real disposable income per capita continues to fall.  In the fourth quarter of 2012, it was sitting at $37,265.  By the time that the fourth quarter of 2013 had come around, it had dropped to $36,941.  That means that average Americans have less money to go shopping with than they did previously.                             #2 In January, real disposable income in the U.S. experienced the largest year over year decline that we have seen since 1974.                        #3 As disposable income decreases, major retailers are closing thousands of stores all over the country.  Some are even calling this "a retail apocalypse".

The end of restaurant tipping? - The argument that waiters and customers will be happier if all tip 0% - Wall Street Journal MarketWatch - Charles Passy - March 12, 2014 - Perhaps the policies at these establishments shouldn’t come as a surprise, since restaurant patrons are increasingly saying they don’t like to play the tipping game. A solid majority of Americans — 75% — say they tip less than the customary 20% when dining out, according to a new survey by vouchercloud.net, which researches consumer spending habits. Additionally, the website reports that 46% of Americans say they are tipping less in general than they did five years ago.                          Shutterstock.com

Scott Rosenberg, owner of Sushi Yasuda, another no-tip restaurant in New York, believes that diners are simply tired of the meal-ending ritual of “grading” a server and then doing the math based on that judgment. “The meal should be there for you to enjoy without doing this calculus,” says Scott Rosenberg.                                To be clear, such restaurants are still paying their waiters — and the customers are still paying for the service as part of the overall bill. When Scott Rosenberg did away with tipping some months back, he raised menu prices by 15% to cover costs.

How the safety net leaves out poor, unmarried men - MSNBC - Suzy Khimm - March 10, 2014 -
When the modern safety net was first conceived, poor single men often weren’t even on the agenda.
The first priority was the poor children and the women who were often their primary caregivers. The assumption was that single adults without dependent children didn’t need the extra government help. “We’ve always thought about men being able to pull themselves up by bootstraps, who’ve never needed support,” says Joe Jones, President and CEO of the Center for Urban Families in Baltimore. “Women and children are considered to be more vulnerable.”                      But it’s becoming increasingly clear that designing the safety net this way has ended up excluding a group that’s become increasingly at risk: poor, unmarried men. Lawmakers from both parties are now looking at policy changes that would help bring them in.                         In his 2015 budget released this week, President Obama included a new proposal to double the Earned Income Tax Credit for childless adults and non-custodial parents. The administration has framed the plan as a broad poverty-fighting measure that would help an estimated 13.5 million working Americans, about 55% of them male.....


Ted Cruz: GOP can repeal “every single word” of Obamacare in 2015 - MSNBC - Benjamin Landy - March 9, 2014 - While Republican efforts to repeal the Affordable Care Act appear increasingly quixotic – House Republicans voted last week for the 50th time to suspend or repeal the president’s signature health care law – Texas Republican Sen. Ted Cruz shows no signs of giving up.                           “You know what they say, ‘50th time is the charm,’” Obama joked. “Maybe when you hit your 50th repeal vote, you will win a prize.”                          Cruz isn’t laughing. He told ABC’s This Week on Sunday that Republicans still have a chance to repeal “every single word” of Obamacare in 2015.                           ABC host Jonathan Karl was incredulous. “We can acknowledge that that’s not going to happen while Barack Obama is president, right?”                          “If there’s one thing that unifies politicians of both parties, you know, their top priority is preserving their own hide,” Cruz responded. “And if enough congressional Democrats realize they either stand with Obamacare and lose, or they listen to the American people and have a chance at staying in office, that’s the one scenario we could do it in 2015. If not, we’ll do it in 2017.”                         Asked if he honestly believes President Obama would agree to repeal his most significant legislative accomplishment, Cruz shifted his attention to the media: “You know, what’s funny, Jon, is the media treats that as a bizarre proposition.”...


Kremlin: If The US Tries To Hurt Russia's Economy, Russia Will Target The Dollar - Testosterone Pit - March 15, 2014 - Another warning shot was fired before an all-out assault on the dollar system begins. This time, an official shot: Alexey Ulyukaev, Russia’s Minister of Economic Development and former Deputy Chairman of the Central Bank, fired it. It was a major escalation, Valentin Mândrăşescu, editor of The Voice of Russia’s Reality Check, told me from Moscow.                       Last time, it was Sergei Glazyev, an advisor to Vladimir Putin who’d fired the shot. But he wasn’t a government official. “Anonymous sources” at the Kremlin claimed he wasn’t speaking for the government. As Mândrăşescu reported in his excellent article, From Now On, No Compromises Are Possible For Russia:

From the economic point of view, everyone should get ready for tough actions from Moscow. Sergei Glazyev, the most hardline of Putin’s advisors, sketched the retaliation strategy: Drop the dollar, sell US Treasuries, encourage Russian companies to default on their dollar-denominated debts, and create an alternative currency system (reference currency) with the BRICS and hydrocarbon producers like Venezuela and Iran.

Unlike radical-sounding Glazyev, Ulyukaev is part of Dmitry Medvedev’s Cabinet. And as former Deputy Chairman of the Bank of Russia, he doesn’t take currencies lightly. He told Rossia-24 news channel about possible retaliatory measures if Washington adds economic sanctions to the political sanctions. Moscow wouldn’t worry too much about political sanctions, he said, but if Washington tries to hurt Russia’s economy, Moscow would retaliate by targeting the US dollar.


The Tiger Awakens: China Warns of “Retaliatory Action” and “Unforeseeable Consequences” Over U.S. Monday Deadline - SHTFPlan.com - Mac Slavo - March 14th, 2014 - Yesterday Secretary of State and flip-flopper extraordinaire John Kerry advised Russia that Vladimir Putin has until Monday to pull back his forces from Ukraine. Failure to do so would lead to serious repercussions. Kerry was light on details, but we can assume he was talking about some sort of economic sanctions:...               
It’s quite obvious, based on Kerry’s statement, that the Obama Administration really has no idea what to do, as they are still talking through “various options,” something that probably should have been worked out well before President Obama began slinging rhetoric over the crisis.                       What the Obama administration assumes will happen is that they’ll force Russia into compliance by coming after their economy. Obama will hit the Late Night TV circuit to tout his success, we’ll all laugh about it, and then go on our merry way. Putin will be left embarrassed and laying in the fetal position sucking his thumb. At least that’s the plan.                            But two can play at that game and China, which has stood by Russia’s show of force in Europe since the get-go, has now upped the ante.                              It’s a brilliant move designed, once again, to show the world that President Obama and the United States are no longer running the show.


Warren Pollock - Monopoly Pricing and Empire (Labor Allocation & The Loss of Purchasing Power & Jobs)

Agenda about the City Council meeting of March 18, 2014

This Agenda is about the Hickory City Council meeting that took place on the date listed above. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.

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

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City Council Agenda - March 18, 2014

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The Hound's Notes:
1) It looks like in Departmental Report 2 that Moretz Mills LLC has come to an amicable agreement with Catawba Paper Box over the closure of E Avenue SE. This issue was thoroughly discussed at the last City Council meeting on March 4, 2014. 

2) Public Hearing 2 is to consider an Economic Development Agreement with MAB American for the Development of City Owned Property on the Cloninger Mill proposed Park Site - I pointed to this in the Agenda for the past meeting:

2) Possible development of the property at the Cloninger Mill Proposed Park site? - I find item I of the Consent Agenda interesting. Economic Development Agreement with MAB American. Found this from Streetinsider.com - November 13, 2013 - Inland Real Estate Corporation (NYSE: IRC) announced that it has entered into a joint venture to develop grocery-anchored shopping centers in select markets throughout the southeastern United States with MAB American Retail Partners, LLC, an affiliate of Melbourne, Australia-based MAB Corporation. The five-year development program will target demographically strong metropolitan areas in the Carolinas, Georgia, Florida, Virginia and Washington, D.C. and could result in the construction of as many as 20 new grocery-anchored shopping centers with a total market value of as much as $325 million. MAB Corporation is a privately owned property development company and fund manager that has completed in excess of $2 billion in projects, including retail, office, multi-family and industrial, at locations throughout Australia, New Zealand and the United States.
MAB Rosenthal - MAB American

If one looks at the links above and the Grocery Store sites created by MAB American, then one will see that there are no associations/partnerships with Whole Foods or Trader Joe's or what has been pontificated about as "Upscale" stores in the Hickory Daily Record. You see associations with Lowe's, Food Lion, and BiLo stores. Sorry to tell folks, they will take it the wrong way, but it needs to be said, Hickory can't support a Whole Foods. We are statistically the poorest metropolitan area in the State of North Carolina. That isn't putting Hickory down. That is stating a fact. We didn't support The Fresh Market on Hwy 127 in Viewmont.

In reverse engineering this, my thought is, and what I have been pontificating to others, is that it is going to be a Food Lion and they are looking to move from their current location on Hwy 127 in Viewmont to a new store. The Food Lions in the Eastern Part of the state are nicer. They've renovated the Food Lion on Springs Road. They can't renovate the Food Lion on 127. It's an old store. Food Lion can keep their current clients in NW Hickory, get people from that side of Cloninger Mill Road, and they will be able to get shoppers from Bethlehem.  A nicer Food Lion would not be a bad thing. I would support Food Lion or any other Grocery Store in this location. It brings more access to groceries in that area and the Cloninger Mill Park can be developed. That is a win-win for that area in my opinion.

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Invocation by Rev. Jay Robison, Pastor, Viewmont Baptist Church


Special Presentations
A. Laurie Hoover of the Business Development Committee Presentation of the Business Well Crafted Award to John Teeter, Executive Vice President, Pepsi Cola Bottling Company

B. Proclamation for American Red Cross Month presented to Suzan Anderson, Community Chapter Executive, American Red Cross

Persons Requesting to Be Heard
A. Roger Young - Friends of Hickory, Specific Space for the Downtown Park
B. Matthew Church - Regarding Outside Rates for Water Fees
C. Dr. Ric Vandett - Regarding Homeless Veteran Stand Down

Consent Agenda
A. Call for Public Hearing – for Consideration of Text Amendment (TA) 14-01 to the City’s Land Development Code. (Authorize Public Hearing for April 1, 2014)

B. Special Event/Activities Application for Symphony Under the Sails Spring/Fall Pops Concerts, Reggie Helton, Executive Director, Western Piedmont Symphony, Sails on the Square, April 27, 2014 and September 28, 2014 12:00 p.m. to 8:30 p.m. (times include set-up and clean-up).

C. Special Event/Activities Application for Symphony Under the Sails Summer Pops Concert, Reggie Helton, Executive Director, Western Piedmont Symphony, Sails on the Square, June 29, 2014 12:00 p.m. to 9:30 p.m. (times include set-up and clean-up).

D. Special Event/Activities Application for Music Under the Sails Summer and Fall Friday Night Concerts, Mandy Pitts, Communications Director/Brand Manager, Sails on the Square, May 2, 9, 16, 23, 30, 2014; June 6, 13, 20, 27, 2014; and September 5, 12, 19, 26, 2014, 4:00 p.m. to 9:00 p.m. (times include set-up and clean-up).

E. Special Event/Activities Application for Swinging Under the Stars, Tony Eltora, Executive Director, Hickory Music Factory, Sails on the Square, May 25, 2014, 12:00 p.m. to 10:30 p.m. (times include set-up and clean-up).

F. Special Event/Activities Application for Drum Circles, Tony Eltora, Executive Director, Hickory Music Factory, Sails on the Square, May 31, June 28, July 26, August 30, and September 27, 2014, 3:00 p.m. to 6:30 p.m. (times include set-up and clean-up)

G. Budget Ordinance Amendment Number 18.
1. To budget a $2,000 donation from the Hickory Elks Lodge in the Parks and Recreation Departmental Supplies line item. This donation is for the 2014 EasterEgg Hunt which the City of Hickory Parks and Recreation Department coordinates annually.

2. To budget a total of $9,350 of donations from (Humana, ING Source, Lutheran Home, Catawba Regional Hospice, Home Instead Senior Care, Catawba Valley Medical Center, Carolinas Healthcare System, Gentiva, Bayada, Senior Information Resources, Catawba Valley Living, and Brookdale Senior Living) in the Parks and Recreation-Departmental Supplies line item. These donations are for the 2014 Easter Egg Hunt which the City of Hickory Parks and Recreation Department coordinates annually.

3. To budget a $3,025 insurance claim payment in the Traffic Division M&R Traffic Signals line item. This insurance claim payment is for storm damage to fiber optic trunk lines for the City Signals System.

4. To appropriate $7,500 of General Fund Balance (Funds reserved from the US Department of Justice) and budget in the Police Department Departmental Supplies line item. This amendment is necessary to purchase 16 gas masks for the Hickory Police Department Special Operations Team. The current gas masks are over 10 years old and no longer function for the team in case of a chemical threat. The new gas masks provide high protection in law enforcement or counter terrorism operations. They also protect against a range of CBRN (chemical, biological,radiological and nuclear) threats. Funds are made available to the Police Department from the US Department of Justice and remain in General Fund Balance until appropriated.

Informational Item
A. Report of City Manager Mick Berry’s travel to attend the North Carolina City County Management Association (NCCCMA) Winter Conference, in Durham, North Carolina, February 5-7, 2014 (registration - $350; room - $419.95; meal per diem - $51.25)
B. Report of Mayor Wright’s travel to attend the North Carolina Metro Mayors Meeting, February 27-28, 2014 (registration - $125). Mayor Wright was unable to attend due to a conflict in scheduling. The registration fee was non-refundable.
C. Report of Mayor Wright’s travel to attend National League of Cities – Congress of Cities, in Seattle, Washington, November 13-17, 2013 (registration - $765; room - $796.20; meal per diem - $190.25; airfare expense - $506.55; mileage reimbursement - $58.76).

D. The Buyer has cancelled the Offers to Purchase and Contracts for Properties Located at 1840 and 1845 Waterbury Court, in the Waterford Hills Subdivision, which had been approved on first reading on March 4, 2014.

New Business - Public Hearings
1. Public Hearing to Amend 2012 and 2013 Community Development Block Grant Annual Action Plans. - In April of each year, staff prepares an Annual Action Plan for its Community Development Block Grant allocation from the federal government. This plan has included a line item for constructing curbs, gutters, and sidewalks in low to moderate income areas throughout the City. This amendment aims to increase the flexibility of staff to find infrastructure improvement projects that meet the objectives of the Community Development Block Grant Program. A public hearing is required to amend the Annual Action Plan. This public hearing was advertised in a newspaper having general circulation in the Hickory area on March 7, and March 18, 2014.

2. Public Hearing to Consider an Economic Development Agreement with MAB American for the Development of City Owned Property at Cloninger Mill Road and NC. 127. - North Carolina General Statute 158-7.1 permits the City to sell city-owned property for economic development purposes provided that the transaction will result in the creation of jobs and tax base. The property must be sold for at least market value. The statute permits the City Council to place restrictions on the
development of the property to ensure that future development meets the expectations of the Council. A public hearing is required prior to entering into a contract to develop the site. The property has been appraised for $890,000. The economic development agreement calls for a sales price of $900,000. All site plans and building elevations would need to be approved by City Council prior to
developing the site. The agreement would give the developer 12 months to begin work on the site, and 24 months to complete construction of the anchor tenant building. This public hearing was advertised in a newspaper having general circulation in the Hickory area on March 7, 2014.

3. Public Hearing to Consider an Economic Development Agreement with Cornerstone United Inc., and Piedmont Wagon Properties, LLC for the Property Located at 1020 Main Ave. NW, Hickory.  - Cornerstone United, Inc. and Piedmont Wagon Properties, LLC, two entities involved with the redevelopment of the historic Piedmont Wagon Building at 1020 Main Avenue NW, are requesting to enter into an economic development agreement in exchange for the creation of jobs, neighborhood reinvestment and additional tax base according to North Carolina General Statute 158-7.1.
Cornerstone United, Inc. is an international third party service contract administration company, with its corporate headquarters in Hickory, NC and operations in the U.S. and Canada. Cornerstone has been in business since 1973. The company intends to up-fit and equip the historic facility for office space at a cost in excess of two million four hundred thousand dollars ($2,400,000) with the improvements being constructed between December 1, 2013 and December 31, 2014. The company currently has 45 employees and has been located in a lease space that they have outgrown off of Tate Boulevard. They intend to create a minimum of five (5) new jobs with the potential to expand and create an additional thirty (30) jobs for a total of approximately 75-80 jobs over the next few
years. This public hearing was advertised in a newspaper having general circulation in the Hickory area on March 7, 2014.

New Business - Departmental Reports:
1. Approval of an Agreement to with the Town of Long View to Purchase Potable Water from the City of Hickory. - The City of Hickory previously provided potable/palatable finished water to Long View for an extended period in the late 1990’ while Long View completed some necessary repairs and upgrades at their drinking water treatment facility. This agreement will allow Long View to close their water treatment facility and purchase all of their potable/palatable water from the City of Hickory’s distribution system. The initial water purchase rate will be $1.21 per 1,000 gallons. The
term of this agreement is for an initial term of 20 years with optional 10 year renewal periods. This agreement gives Long View the right to purchase up to 2.5 million gallons per day with options to expand this volume in the future if agreed to by the City of Hickory.

2. Vote regarding the Resolution and Order for Petition of Moretz Mills, LLC to Close a Portion of E Avenue SE. - The vote was deferred until a time certain at the public hearing held on March 4, 2014. Staff recommends adoption of the attached resolution closing E Avenue SE with the following conditions:
1. The City has been granted a transportation easement, at no cost to the City, over the shaded area located at the northwest corner of the intersection of 7th Street SE and F Avenue Drive SE, as shown on Exhibit A (the “Additional Right of Way”);
2. Moretz Mills, LLC, at its cost, completes construction of improvements, including grading and paving, according to the City of Hickory standards for a public street, in the Additional Right of Way and in shaded area in the northeast corner of the intersection of 7th Street SE and F Avenue Drive SE,
as shown on Exhibit A;
3. The Director of Public Services for the City of Hickory shall have the authority to determine whether the above conditions have been met. When the conditions have been met, the Director shall file a certificate with the Register of Deeds stating that the conditions of this Resolution have been met. The closing of the street will be effective when the certificate is recorded. Until that time, E Avenue SE shall remain open. Staff also recommends the City pursue the improvements to the intersection of F Avenue Drive SE as shown on the attached aerial photo (labeled “City Improvement”) and approve the following budget amendment:
General Fund Contingency 010-9900-608.90-01 - $5,150
Transportation-Paving Streets 010-5460-536.33-77 - $5,150

Living Wage Calculation for Hickory, Catawba County, North Carolina

Living Wage Calculation for Hickory, Catawba County, North Carolina

The Living Wage Calculator, Community Economic Toolbox, and Poverty in America websites were developed by Dr. Amy K. Glasmeier and implemented by West Arete.

Eric Schultheis, a doctoral student in the Department of Urban Studies at MIT, collected, processed, and aggregated the site’s data.

Introduction to the Living Wage Calculator
In many American communities, families working in low-wage jobs make insufficient income to live locally given the local cost of living. Recently, in a number of high-cost communities, community organizers and citizens have successfully argued that the prevailing wage offered by the public sector and key businesses should reflect a wage rate required to meet minimum standards of living. Therefore we have developed a living wage calculator to estimate the cost of living in your community or region. The calculator lists typical expenses, the living wage and typical wages for the selected location.

The living wage shown is the hourly rate that an individual must earn to support their family, if they are the sole provider and are working full-time (2080 hours per year). The state minimum wage is the same for all individuals, regardless of how many dependents they may have. The poverty rate is typically quoted as gross annual income. We have converted it to an hourly wage for the sake of comparison. Wages that are less than the living wage are shown in red.

About/History

Living Wage Calculator - Warren Pollock

Economic Stories of Relevance in Today's World -- March 9, 2014

Gerald Celente - Founder & Director, Publisher, the Trends Journal® - King World News interview - March 8, 2014 - Gerald Celente will show you the future. Forecasting trends since 1980, Mr. Celente, Founder & Director of the Trends Research Institute, is author of the highly acclaimed and best selling books, Trend Tracking and Trends 2000 (Warner Books) and publisher of the Trends Journal®. King World News interview

More Americans relocating for new jobs - Number of new hires who relocated jumped 35% in 2013 - Marketwatch - Wall Street Journal - Catey Hill - March 6, 2014 - ...To be sure, there have been some adjustments. The area is different than Cleveland—Walker jokes that his local car wash has a sign that says “no washing pig smokers,” not something one sees in Ohio. And the family is understandably a little nervous about making a whole new set of friends and leaving family behind. Still, Walker says he’s glad they made the move. “It’s so easy to get caught in the inertia of life—that is where we were—I’m glad I just found a job and decided to go.”                          Walker is part of a small but fast-growing trend: After years of staying put, the percentage of workers relocating for a new job in 2013 climbed 35% from a year prior, according to a survey released Thursday by outplacement firm Challenger, Gray & Christmas, which looked at people who successfully obtained a new job last year. About 13% of people who got a new job in 2013 ended up moving house, up from 9.8% in 2012. “The labor market is slowly unlocking,” says John Challenger, CEO of Challenger, Gray & Christmas. “This shows that people are more confident with the job market, willing to move to a new place and take their chances.”                           What’s more, Challenger says this increased relocation rate is a sign that the economy is improving—specifically that the real estate market is picking up and more companies are hiring. Indeed, it’s easier to unload a home and move these days, as home prices climbed more than 10% in 2013, while foreclosure rates plummeted. “We’re going to make money on our home,” says 32-year-old Bonnie Taylor, who relocated from Las Vegas to Boston for a job in February. Plus, the unemployment rate fell from 7.9% in January to 6.7% in December. Also, 1.7% of workers voluntarily left their jobs in December, up from a mere 1.2% in 2009. “We are in a new place in the economy,” says Challenger....

Ukraine crisis: 5 financial, economic effects - USA Today - John Waggoner - March 3, 2014 - • Lower stock prices. • Higher energy prices, particularly in Europe. • Slower economic growth in Europe, because of higher energy prices. • Lower U.S. Treasury yields. • Higher gold prices.


States make end run around food stamp cuts - AP through CNBC - March 2, 2014 - Connecticut and New York have found a way around federal budget cuts that played a central role in the massive farm bill passed this month: bump up home heating assistance a few million bucks in return for preserving more than a half-billion dollars in food stamp benefits.                            The moves by Connecticut Gov. Dannel P. Malloy and New York Gov. Andrew Cuomo -- with the possibility that more governors could follow -- cheer social service advocates who say the deep recession and weak economic recovery have pounded low-income workers and the unemployed who rely on heating assistance and food stamps.                         The $100 billion per year farm bill cut $800 million annually in the food stamp program by ending some state practices that give recipients minimal heating assistance -- as low as $1 per person -- to trigger higher food stamp benefits. Compromise legislation requires states to give recipients at least $20 in heating assistance before a higher food stamp benefit could kick in...



Plunging mall traffic is killing some restaurants and stores - CBS MoneyWatch - Kim Peterson - March 6, 2014 - Shopping malls are slowly turning into ghost towns, and that's taking a toll on the stores and restaurants inside of them.                   Nowhere is this more apparent than in the mall food court. Several fast-food chains that were once a primary source of sustenance for bored teens are crumbling, unable to stay in business as shoppers spend their money elsewhere.                     The latest victim is Sbarro, the pizza and pasta chain that was a staple at mall food courts. The company could file for Chapter 11 bankruptcy protection as early as next week, The Wall Street Journal reported late Wednesday, citing sources familiar with the matter.                   In mid-February, the company announced it would be closing 155 of its 400 North American stores, most of which are located in malls and airports. The company is buckling under $140 million in debt....


Everything must go: There's a flood of store closings - CNN Money - Chris Isidore - March 7, 2014 - Brick and mortar chain stores died this week, after a long illness. Born along Main Street, raised in shopping malls across post-World War II America, the traditional store enjoyed decades of good health, wealth and steady growth. But in recent years its fortunes have declined. Survived by Amazon.com and online outfits too numerous to list.                          It may be too soon to write brick-and-mortar's obituary, but it's not looking good.....                            

U.S. House votes to delay Obamacare penalty for non-enrollment - Reuters through Yahoo - David Morgan and Thomas Ferraro - March 5, 2014 - The Republican-led U.S. House of Representatives voted on Wednesday to delay for one year the tax penalty Americans will pay under President Barack Obama's healthcare law if they decline to enroll in health coverage.                     The vote, part of a Republican election-year attack strategy against the 2010 healthcare law known as Obamacare, marked the 50th time House Republicans had passed legislation to try to repeal or dismantle it.                       The measure to delay the tax penalty passed by a vote of 250-160, with 27 Democrats joining with 223 Republicans to back the legislation. The bill is certain to go nowhere in the Democratic-controlled Senate and would face a White House veto even if it succeeded.

Companies shrink workforces in February, ISM says - Employment gauge in services index falls to lowest level since Marketwatch - Wall Street Journal - Jeffry Bartash - March 5, 2010 -  The companies that employ roughly 80% of American workers grew more slowly in February and their workforces contracted for the first time in more than two years, according to a survey of executives.                         The Institute for Supply Management said its non-manufacturing index dropped to 51.6% last month from 54% in January. While readings over 50% signal more companies are expanding instead of shrinking, the index fell well short of the 53% forecast of economists polled by MarketWatch.                        The index is compiled from a survey of senior executives who buy supplies for their companies. The latest results show that service companies such as retailers, health-care suppliers and hotels stumbled in February and unusually poor weather was partly but not entirely to blame. 

No Jobs, No Economy, No Prospects For Peace Or Life — Paul Craig Roberts - March 7, 2014 -
Over the decades various administrations, seeking to improve their economic record, monkeyed with economic statistics to the point that the statistics are no longer meaningful.                         According to Friday’s (March 7) payroll jobs report, the US economy created 175,000 new jobs in February. If you believe that, I have a bridge in Brooklyn that I’ll let you have at a good price.
Even if 175,000 jobs were created in February–remember now, February was a cold month whose low temperatures are used to explain poor housing and retail sales performance, yet somehow created 40,000 more jobs than needed to keep up with population growth–that is an insufficient amount to drop the unemployment rate.                          To see how screwed up US economic statistics are, consider the reported unemployment rate (U.3) of 6.7 percent in comparison with the fact that there are about 6 million Americans who have been unable to find a job and are no longer counted as unemployed. These millions of unemployed are not included in the reported rate of unemployment.
John Williams (shadowstats.com) reports that the true rate of US unemployment is around 23 percent.
Rather than examine the issue, the presstitute financial media trumpets the government’s propaganda. In America there is no more of a financial media, except for Pam Martens and Nomi Prins, than a print and TV media.                              The Economic Policy Institute reports that there are 1,360,000 unemployed men and women under 25, 2,8000,000 unemployed men and women aged 25-54, and 1,640,000 unemployed men and women 55 and over who are not counted as unemployed, because they have been unable to find a job after searching a long time and have given up looking.
Just as “your” government and “your” prostitute media lie to you about Ukraine, Putin, Saddam Hussein, Gaddafi, Iran, Pakistan, Yemen, Palestine, NSA, spying, torture, 9/11, Obamacare, and literally everything under the sun, “your” government lies to you about the economy and hides from you the perilous state of your economic existence. If you are not among the One Percent, you have no future in America.                        Let us have a look at the 175,000 claimed jobs. Are these the promised high-paying jobs of the “New Economy” that Washington and its economists pimps guaranteed us would take the place of the offshored manufacturing and tradable professional service jobs?                       Afraid not. In the many years that I have been observing the monthly payroll jobs reports and the BLS’s future jobs projections, I have never seen even one of the “New Economy” jobs. They simply do not exist. Yet, the economics profession, an extremely deluded collection of morons, still believes in these jobs....


Average Wage Growth Slowest in 5 years - Breitbart - Mike Flynn - March 5, 2014 - Friday's report from the Labor Department that the economy added 175,000 jobs in February was better than economists expected. After two very weak reports in December and January, expectations had been lowered for job creation in the month. While the overall number of jobs added was good news, details in the report give caution for future job growth. For the month, average weekly wages grew at their slowest pace in 5 years, suggesting no real future growth in the economy.                                      Average weekly earnings for production and non-supervisory employees actually fell in the month to $682.65 from just over $683 in January. For all employees, average weekly earnings inched up about 60 cents to $831.40. Those earnings are up just 1.3% since last February, the slowest annual growth since the recovery began in 2009.                   Annual growth in average weekly earnings has been declining since 2010. In that year, average earnings grew 2.9%. Growth in the next three years dropped to 2.3%, 2.1% and 1.6% respectively. February's increase in average wages was just 1.3% higher than the year before.                        Part of the slowdown in wage growth is likely attributable to the drop in hours worked each week. In the past year, 17 of 19 industry sectors tracked by the Labor Department experienced a decline in the average number of hours worked each week.                     With wage growth generally stagnant, it is hard to envision a pick-up in economic activity as we enter Spring. Consumer spending accounts for around three-quarters of economic activity. With wages growing slower than consumer inflation, it is hard to see a sharp uptick in consumer spending.

Newsletter about the City Council meeting of March 4, 2014

I began video recording the City Council in 2012, because of my desire that the City do it on their own as any modern 21st century community began doing long ago. I had people tell me that they couldn't make it to the meetings, but they would like to see what is going on. I was also told by some council members that my summaries did not truly reflect the record, so having a video/audio recording cannot be misinterpreted.

So below is the City Council meeting. With each agenda item, you can click on the links and it will take you to that specific point in the meeting. You can always drag the marker on the video display to the point in the broadcast that you are interested in seeing.

Agenda about the City Council meeting of March 4, 2014
- Go to this link if you would like more information about the Agenda items.

Highlighted Links below take you straight to that point in the video.



Invocation by Reggie Longcrier

Special Presentations
A. Presentation of FY 2014-2015 Board and Commission Work Plans. Presenters will be allotted no more than five (5) minutes to make their presentations to Council.
Board/Commission Presenter
1. Library Advisory - Board Kathy Ivey
2. Citizens’ Advisory Committee - Mike Holland - Dave Leonetti
3. Community Appearance Commission - Steve Bowman
4. Community Relations Council - Neal Orgain
5. Hickory International Council - Hani Nassar
6. Hickory Regional Planning Commission - Brian Frazier
7. Hickory Youth Council - Toni Abernathy - Dave Leonetti
8. Historic Preservation Commission - Larry Triplett
9. Parks and Recreation Commission - Tony Wood
10. Public Art Commission - Brian Frazier
11. Recycling Advisory Board - Norm Meres
12. Business Development Committee - Alan Jackson

B. Inspiring Spaces Committee Update - Presentation by Andrea Surratt, Assistant City Manager

Persons Requesting to be Heard:
Larry Pope

Consent Agenda:  


New Business - Public Hearings
1. Resolution and Order for Petition of Moretz Mills, LLC to Close a Portion of E Avenue SE. -  Re-Opening of the Public Hearing continued to this date from February 4, 2014
Chuck Hanson - Public Services Director

Skipper Smith - Owner of Catawba Paper Box - Opposes the Closing of E Avenue
Fan Smith - Opposes the Closing
Lisa Valdez - Attorney for the Smith's
Andy Rhoney - Sales and Marketing Director for CPB 
- others spoke also

John Moretz - Owner of Moretz Mills, LLC - Speaking for closing E street
Corey Gaines - Gaines Motor Lines - Trucking Consultant/Driver 
Ryan Edwards - Southeast Retirement Planners, Inc - Prospective Tenant
Ellie Bradshaw - Attorney for Mr. Moretz

Meg Locke - Owner of Hollar Crossing - wants the groups to come to an agreement
Ted Cooke - Speaks about the reality of the roads in the area and access and transition of property to future purposes.

***Rebuttals***

***City Council Deliberation*** - City Council Decides to table the Public Hearing until the city Council meeting on March 18, 2014



Hound on the Meeting: - Thoughts about the Hickory City Council meeting of March 4, 2014

The issue of the evening was the Public Hearing for the Petition by Moretz Mills, LLC to Close a Portion of E Avenue SE. - On December 6, 2013, Patrick, Harper & Dixon, Attorneys at Law, presented a petition on behalf of Moretz Mills LLC, one of the property owners of property abutting a portion of E Avenue SE, requested the City to abandon a portion of this right-of-way.

This turned into the Moretz Mills Development project owned by John Moretz versus Catawba Paper Box owned by Skipper Smith. Mr. Moretz wants E Avenue closed because he is redeveloping his building and incorporating a parking lot across the street and he wants his customers to be able to cross the street without concern for traffic.

Mr. Smith's business received a Hickory Well Crafted Business Award on April 16, 2013. His business uses that street as an access road to accept (ingress) and deliver (egress) goods to his business. Currently it isn't a busy street and there are only a few trucks coming through the area per day, but he believes that this street is vital to the health of his business. This road gives them complete and direct access to Lenoir-Rhyne Boulevard leading to I-40 and beyond.

Mr. Moretz's building project is very important to the revitalization of that area. He is investing $10+ million in this project and already has 11 tenants who have signed up to lease spaces.  He says he is willing to help redesign street access for trucks to use F Ave Dr SE, instead of E Ave SE.

This issue was to come before the Council back on February 4, but time was allowed for the two organizations to continue to negotiate. Staff, the Attorneys, and the Council agreed to punt the issue to tonight.

Each side brought forth new proposals on this evening during the public hearing and both sides made valid points; but there was also some rhetoric and hyperbole, as one would expect. It was clear that most of the Council was uncomfortable about making a decision on this night and both parties had expressed that they had positive proposals on the table. I think both sides expected the Council to pick their particular proposal.

The Council voted 4 (Mayor Wright, Hank Guess, David Zagaroli, and Jill Patton) to 3 (Brad Lail, Bruce Meisner, and Danny Seaver) to give these two organizations one last chance to come to an amicable agreement over the next 2 weeks.

The Hound: After listening to each side, I think that Wright, Seaver, Zag, and Patton did the right thing here. These people do need to come to an agreement. If we are going to see revitalization and the community moving forward, then we are going to have to work together on progress. There is nothing wrong with giving people every opportunity to do the right thing. If they come to an agreement, then everyone wins. If they don't, then someone's feelings will be hurt.

Thoughts about last night's Hickory City Council meeting

The issues that I found interesting before the meeting weren't even discussed that much.

1) The presentations of the Boards and Commissions were basically carbon copies of the previous years plans with tweaks based upon upcoming events.

2) Inspiring Spaces was glossed over, but Ms. Surratt did say the document plan is online:

City's Inspiring Spaces Page -
http://www.hickorync.gov/department/board.php?structureid=162

3) The issue of the evening was the Public Hearing for the Petition by Moretz Mills, LLC to Close a Portion of E Avenue SE. - On December 6, 2013, Patrick, Harper & Dixon, Attorneys at Law, presented a petition on behalf of Moretz Mills LLC, one of the property owners of property abutting a portion of E Avenue SE, requested the City to abandon a portion of this right-of-way.

This turned into the Moretz Mills Development project owned by John Moretz versus Catawba Paper Box owned by Skipper Smith. Mr. Moretz wants E Avenue closed because he is redeveloping his building and incorporating a parking lot across the street and he wants his customers to be able to cross the street without concern for traffic.

Mr. Smith's business received a Hickory Well Crafted Business Award on April 16, 2013. His business uses that street as an access road to accept (ingress) and deliver (egress) goods to his business. Currently it isn't a busy street and there are only a few trucks coming through the area per day, but he believes that this street is vital to the health of his business. This road gives them complete and direct access to Lenoir-Rhyne Boulevard leading to I-40 and beyond.

Mr. Moretz's building project is very important to the revitalization of that area. He is investing $10+ million in this project and already has 11 tenants who have signed up to lease spaces.  He says he is willing to help redesign street access for trucks to use F Ave Dr SE, instead of E Ave SE.

This issue was to come before the Council back on February 4, but time was allowed for the two organizations to continue to negotiate. Staff, the Attorneys, and the Council agreed to punt the issue to tonight.

Each side brought forth new proposals on this evening during the public hearing and both sides made valid points; but there was also some rhetoric and hyperbole, as one would expect. It was clear that most of the Council was uncomfortable about making a decision on this night and both parties had expressed that they had positive proposals on the table. I think both sides expected the Council to pick their particular proposal.

The Council voted 4 (Mayor Wright, Hank Guess, David Zagaroli, and Jill Patton) to 3 (Brad Lail, Bruce Meisner, and Danny Seaver) to give these two organizations one last chance to come to an amicable agreement over the next 2 weeks.

The Hound: After listening to each side, I think that Wright, Seaver, Zag, and Patton did the right thing here. These people do need to come to an agreement. If we are going to see revitalization and the community moving forward, then we are going to have to work together on progress. There is nothing wrong with giving people every opportunity to do the right thing. If they come to an agreement, then everyone wins. If they don't, then someone's feelings will be hurt.

Economic Stories of Relevance in Today's World -- March 2, 2014

Dr. Paul Craig Roberts - King World News Interview - March 1, 2014 - Former US Treasury Official, Co-Founder of Reaganomics, Economist & Acclaimed Author - Dr. Paul Craig Roberts is an American economist, a columnist and recent author of “The Failure Of Laissez Faire Capitalism” -  Dr. Roberts speaks about the Implosion of the Soviet Union during the Reagan - Bush Administrations. The Ukraine's problems have been created by the Western Central Banking Cartel.  The rebels who have taken over Ukraine are Nazis. Their are ethnic issues involved here. The incompetence of the U.S. Government can lead to a Nuclear confrontation.



Ukraine War Could Cause Huge Oil Price Spike - Wall St. 24/7 - Douglas A. McIntyre - March 2, 2014 - ... It takes very little in terms of global political conflicts, weather, or tightened supply to press the price of crude higher. One big hurricane in the Gulf of Mexico, racing toward Texas refineries can trigger it. So can any hint that OPEC might throttle supply. Tensions in the Middle East seem to affect oil prices almost annually, if not more often.                        Russia supplies much of the oil and natural gas for Europe. In September 2013, a dispute between Russia and Belarus caused anxiety about the export of crude by the huge nation. Europe has no easy way to replace this supply. If the West imposes sanctions on Russia over its actions in Ukraine, Russia may retaliate with a cut in oil and gas exports to undermine Europe’s resolve.                      The question is how much a war between Russia and Ukraine would move oil prices higher. There is no formula to count it. However, the more violent the conflict, the more likely that the move upward would be sharp.                  Crude oil in the United States currently trades at about $102 a barrel. It has bounced between that level and $90 for a year. So far, the $100 price has not effected gas, oil, and petrochemical prices enough to dent the economies of the developed nations. If the 2008 oil spike, which pushed crude above $120 a barrel for about three months, is any indication, GDP among these countries could be hurt by much higher prices. The victims would range from drivers to transportation companies and airlines. And the ripple caused by high petrochemical prices, which effect a broad range of industries, is too large to calculate.


Memo to Obama: This Was Their Red Line! - Contra Report - David Stockman - March 2, 2014 - In 1783 the Crimea was annexed by Catherine the Great, thereby satisfying the longstanding quest of the Russian Czars for a warm-water port. In fact, over the ages Sevastopol emerged as a great naval base at the strategic tip of the Crimean peninsula, where it became home to the mighty Black Sea Fleet of the Czars and then the commissars.                          For the next 171 years Crimea was an integral part of Russia—a span that exceeds the 166 years that have elapsed since California was annexed by a similar thrust of “Manifest Destiny” on this continent, thereby providing, incidentally, the United States Navy with its own warm-water port in San Diego. While no foreign forces subsequently invaded the California coasts, it was most definitely not Ukrainian and Polish riffles, artillery and blood which famously annihilated The Charge Of The Light Brigade at the Crimean city of Balaclava in 1854; they were Russians defending the homeland.                        And the portrait of the Russian ”hero” hanging in Putin’s office is that of Czar Nicholas I—who’s brutal 30-year reign brought the Russian Empire to its historical zenith, and who was revered in Russian hagiography as the defender of Crimea, even as he lost the 1850s war to the Ottomans and Europeans. Besides that, there is no evidence that Putin does historical apologies, anyway.                           In fact, its their Red Line. When the enfeebled Franklin Roosevelt made port in the Crimean city of Yalta in February 1945 he did know he was in Soviet Russia. Maneuvering to cement his control of the Kremlin in the intrigue-ridden struggle for succession after Stalin’s death a few years later, Nikita Khrushchev allegedly spent 15 minutes reviewing his “gift” of Crimea to his subalterns in Kiev in honor of the decision by their ancestors 300 years earlier to accept the inevitable and become a vassal of Russia...

Kiev Fascist Clique Reeling Under Russian Counterstrokes; Obama Must Back Off; Merkel, Ashton, Fabius, Sikorski, Steinmeyer Exposed as Coup Plotters - Tarpley.net - Webster G. Tarpley, Ph.D. - World Crisis Radio - March 1, 2014

New home sales hit five-and-a-half year high in January - Reuters - Lucia Mutikani - February 26, 2014 - Sales of new U.S. single-family homes surged to a 5-1/2-year high in January, possibly easing concerns of a sharp slowdown in the housing market.                       The Commerce Department said on Wednesday that sales jumped 9.6 percent to a seasonally adjusted annual rate of 468,000 units, the highest level since July 2008.                           December's sales were revised up to a 427,000-unit pace from the previously reported 414,000-unit rate. Economists polled by Reuters had forecast new home sales, which are measured when contracts are signed, falling to a 400,000-unit pace in January.

Sales in the Northeast soared 73.7 percent to a seven-month high, while the South recorded a 10.4 percent rise in transactions to a more than five-year high.                           These regions along with the Midwest have experienced unusually cold weather that has been blamed for holding back economic activity. Sales tumbled 17.2 percent in the Midwest last month, while rising 11 percent in the West.                           New homes are a small segment of the housing market, which lost momentum in the second half of last year following a run-up in mortgage rates and a shortage of properties for sale.                           Higher borrowing costs and home prices mean that properties are less affordable for many, especially as income growth remains tepid.                    Yields on 10-year and 30-year Treasuries rose after the release of the housing data, while U.S. stocks were trading broadly higher.                      A separate report on Wednesday showed applications for loans to purchase homes fell 4 percent last week from a week earlier, hitting their lowest level since 1995.

Sales of previously-owned homes tumbled to a 1-1/2 year low in January and housing starts recorded their biggest decline in nearly three years last month, according to data last week.

That raised concerns that the sector, which is key to the economy's recovery, was slowing down sharply.                       New home sales rose 2.2 percent compared with January 2013. For all of 2013, sales were the highest since 2008.                          Last month, the supply of new houses on the market was unchanged at 184,000 units.                        New house inventories are likely to remain lean for a while as builders complain about a lack of lots, materials and skilled labor. With household formation falling sharply last year, housing activity could remain constrained for a while.                    The median price of a new home last month rose 3.4 percent to $260,100 from January 2013. The pace of price increases, however, has slowed in recent months.                         At January's sales pace it would take 4.7 months to clear the supply of houses on the market. That was the fewest months since June and was down from 5.2 months in December.                       A supply of 6.0 months is normally considered a healthy balance between supply and demand.                    (Reporting by Lucia Mutikani; Editing by Paul Simao)