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Tuesday, August 12, 2014
This is awesome!!!
Uma Thurman, Jump: Jameson First Shot 2014 - Published on Jul 26, 2014 - Jameson Irish Whiskey in association with Kevin Spacey's Trigger Street Productions presents 'Jump' starring Uma Thurman Subscribe, like and share Jessica Valentine's film, the Jameson First Shot 2014 winner for the USA.
Monday, August 11, 2014
Economic Stories of Relevance in Today's World -- August 10, 2014
Paul Craig Roberts - USA Watchdog.com - August 10, 2014
1) Russian sanctions on the West.
2) Germans believe that way U.S. is acting (direction) is contrary to common sense and against German Interest.
3) Russians want to separate Europeans from acting as U.S. surrogates.
4) Sanctions will hurt certain sectors, but not the entire economy on either side.
5) ISIS (in Iraq) is about different religious sects. Strong men suppress the conflicts between the sects.
6) Removal of strong men encouraged Jihadists.
7) ISIS is a religious movement that demands strict adherence. No one can deal with it. Represents mental change.
8) ISIS movement will likely spread. Washington created the environment for this to happen.
9) Washington is reckless with force and does not use diplomacy.
10) U.S. companies are decapitalizing (Cash & Debt) to bolster stock prices. Companies are less public.
11) Dow Jones value is unrealistic. Trades are made by (according to) computer models, not the market.
12) Everything (financial) is going to blow at the same time. It will be something the government can't rig.
13) U.S. Government can't control the flight from the dollar.
14) 4% growth in the GDP isn't an honest number. No growth in incomes, credit, or consumption.
15) Inventory accumulation in the 2nd quarter will lead to a decline in the 3rd quarter.
16) Massive money & deficit creation. Keynesian demand management has had no effect in raising the economy.
17) Russia and China don't want war. Only the U.S. (Neo-con ideology) wants to control the World.
18) Neo-con ideology is threatening the world.
Black Monday 1987
(Wikipedia) Black Monday (1987) - In finance, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74 (22.61%).[1]
Financial News network - MarketWrap - October 19, 1987
Black Monday - Nightly Business Report - October 19, 1987
Lehman Brothers Collapses - September 15, 2008
(Wikipedia) - Bankruptcy of Lehman Brothers - Financial services firm Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. The filing remains the largest bankruptcy filing in U.S. history, with Lehman holding over $600 billion in assets.[1]
Pain Continues on Wall Street as Lehman Goes Bankrupt, and Merrill Sold to BofA - ABC News - Scott Mayerowitz - September 15, 2008 - Wall Street had its worst day more than six years after hectic and historic weekend brought the quick demise of two of America's oldest and best-known investment banks. Stocks dropped dramatically -- with the Dow closing down 504.48 points -- after 158-year-old brokerage firm Lehman Brothers filed for bankruptcy this morning and the other Wall Street stalwart, Merrill Lynch, was sold to Bank of America for $50 billion.
Flash Crash - Fox Business - May 6, 2010
(Wikipedia) - Flash Crash May 6, 2010 - The May 6, 2010 Flash Crash[1] also known as The Crash of 2:45, the 2010 Flash Crash, or simply the Flash Crash, was a United States stock market crash on Thursday May 6, 2010 in which the Dow Jones Industrial Average plunged about 1000 points (about 9%) only to recover those losses within minutes.[2] It was the second largest point swing, 1,010.14 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.[3][4][5]
1) Russian sanctions on the West.
2) Germans believe that way U.S. is acting (direction) is contrary to common sense and against German Interest.
3) Russians want to separate Europeans from acting as U.S. surrogates.
4) Sanctions will hurt certain sectors, but not the entire economy on either side.
5) ISIS (in Iraq) is about different religious sects. Strong men suppress the conflicts between the sects.
6) Removal of strong men encouraged Jihadists.
7) ISIS is a religious movement that demands strict adherence. No one can deal with it. Represents mental change.
8) ISIS movement will likely spread. Washington created the environment for this to happen.
9) Washington is reckless with force and does not use diplomacy.
10) U.S. companies are decapitalizing (Cash & Debt) to bolster stock prices. Companies are less public.
11) Dow Jones value is unrealistic. Trades are made by (according to) computer models, not the market.
12) Everything (financial) is going to blow at the same time. It will be something the government can't rig.
13) U.S. Government can't control the flight from the dollar.
14) 4% growth in the GDP isn't an honest number. No growth in incomes, credit, or consumption.
15) Inventory accumulation in the 2nd quarter will lead to a decline in the 3rd quarter.
16) Massive money & deficit creation. Keynesian demand management has had no effect in raising the economy.
17) Russia and China don't want war. Only the U.S. (Neo-con ideology) wants to control the World.
18) Neo-con ideology is threatening the world.
Black Monday 1987
(Wikipedia) Black Monday (1987) - In finance, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74 (22.61%).[1]
Financial News network - MarketWrap - October 19, 1987
Black Monday - Nightly Business Report - October 19, 1987
Lehman Brothers Collapses - September 15, 2008
(Wikipedia) - Bankruptcy of Lehman Brothers - Financial services firm Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. The filing remains the largest bankruptcy filing in U.S. history, with Lehman holding over $600 billion in assets.[1]
Pain Continues on Wall Street as Lehman Goes Bankrupt, and Merrill Sold to BofA - ABC News - Scott Mayerowitz - September 15, 2008 - Wall Street had its worst day more than six years after hectic and historic weekend brought the quick demise of two of America's oldest and best-known investment banks. Stocks dropped dramatically -- with the Dow closing down 504.48 points -- after 158-year-old brokerage firm Lehman Brothers filed for bankruptcy this morning and the other Wall Street stalwart, Merrill Lynch, was sold to Bank of America for $50 billion.
Flash Crash - Fox Business - May 6, 2010
(Wikipedia) - Flash Crash May 6, 2010 - The May 6, 2010 Flash Crash[1] also known as The Crash of 2:45, the 2010 Flash Crash, or simply the Flash Crash, was a United States stock market crash on Thursday May 6, 2010 in which the Dow Jones Industrial Average plunged about 1000 points (about 9%) only to recover those losses within minutes.[2] It was the second largest point swing, 1,010.14 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.[3][4][5]
Saturday, August 9, 2014
Newsletter about the City Council meeting of August 5, 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.
City Council Agenda - August 5, 2014
Thoughts about the Hickory City Council meeting - August 5, 2014
----------------------------------------------------------------------------------------------
The Hound's Notes:
1) Long Agenda, but they rolled through it pretty quickly, other than the Hickory Housing Authority Grant issue and Warren Woods presentation on the Quarterly Financial Report.
2) Want to reiterate my initial thought about this meeting from the other night that you can find in the link above.
3) Quarterly Financial report may look good in a static and targeted fashion, but when assessed within the current overarching environment it sure looks like a Dead Cat Bounce to me. Please factor in inflation in the numbers. The CPI may be showing 2% to 3% inflation over the past 7 years, but that isn't what we are experiencing in the real world. You've been to the grocery store... You've paid your utility bills... Warren shows deflation in the housing market = 6% decrease in assessments in the upcoming year, but think about people who bought their houses before the Real Estate Depression. Many are paying mortgages based upon those bubble prices at the same time that their income is stagnant or declining... and Hickory Inc. and Catawba County Inc. will raise taxes to achieve Revenue Neutrality... speaking of which, have you seen the number of homes on the market around here and it has begun to swell in Northwest Hickory now. In Hickory, we have been claiming that Fast Food restaurants = Economic growth. That is idiocy.
*** I will re-edit to put in the direct links to the different parts of the meeting this evening. I've had delays in producing this material due to other obligations, including the situation with my maternal grandmother. I will do my best to provide information as soon as possible, but there may be delays for now and the immediate future. Peace and Thanks!
----------------------------------------------------------------------------------------------
Invocation by Alderman Danny Seaver
Consent Agenda:
Alderman Zagaroli had Item I removed from the Consent Agenda - I. Approval of a Contract with Varrow, Inc. in the Amount of $367,114.50 for Data Center Upgrades to the City’s Network. - his question related to how the bidding process worked and was awarded. There was a limited discussion before the Council voted unanimously to approve this contract along with the rest of the agenda.
New Business - Public Hearings
1. Resolution Confirming and Levying Assessment Along a portion of 8th Street Drive NW, Petition Number 01-14 (Curb and Gutter). - The City Clerk received a petition from the owner of property along 8th Street Drive NW to install curb and gutter along a portion of their street per Section 29-2 of the Hickory Code of Ordinances. The City Council adopted a Resolution Directing that Street Improvement Project be Undertaken on April 1, 2014, and the project was completed on June 12, 2014. The Preliminary Assessment Roll for Petition No. 01-14 has been prepared based on the curb and gutter constructed along 8th Street Drive NW. Staff recommends that Resolution Confirming and Levying Assessment be approved. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 18, 2014.
2. Consideration of Rezoning Petition 14-01 for Property Located at 1218 Bugle Lane, Newton. - The City of Hickory has petitioned for rezoning of .479 acres of property located at 1218 Bugle Lane. The petition is to rezone the property from Catawba County R-20 Residential to City of Hickory Low Density Residential – 1 (R-1). The requested rezoning has been put forth to assign City zoning to a property that was recently annexed. Hickory Regional Planning Commission held a public hearing to consider the petition on June 25, 2014, and voted unanimously to forward a recommendation of approval to Hickory City Council. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 25, 2014 and August 1, 2014.
3. Consideration of Adoption of ABC Permit / Local Opinion Ordinance. - Hickory Police Department requests adoption of an ordinance authorizing access to State Bureau of Investigation / Division of Criminal Information (DCI) system for the purpose of obtaining criminal history information on ABC permit applicants to determine their suitability to be an ABC permit holder within the City of Hickory. North Carolina Administrative Code requires the City of the local law
enforcement agency to have an ordinance in place authorizing access to criminal record information on all persons applying for ABC permits for proposed locations within their jurisdiction for the agency to be granted access to computerized DCI information for this purpose. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 18, 2014.
4. Issuance of General Obligation Bond Order for $25,000,000 of Streets and Sidewalks Bonds. - The public hearing is conducted to authorize the issuance of each general bond order and to discuss all matters concerning the proposed general obligation bond orders. The proposed bond referendum consists of $25,000,000 of Streets and Sidewalks Bonds. Funds will be used to construct, enlarge and improve certain streets, roads and intersections including the costs of studies, plans and designs. The improvements will include streetscape and pedestrian improvements, signage, landscaping, pedestrian/bicycle paths and relocation of utilities. Funds will be used to acquire land, rights-of-way and easements as necessary for each Inspiring Spaces project. Authorize the issuance of a general obligation bond order for $25,000,000 of Streets and Sidewalks Bonds. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 25, 2014.
a. Request City Council adopt the Bond Orders without change or amendment and direct the City Clerk to publish a notice of adoption, as prescribed by the Local Government Bond Act, of the general obligation streets and sidewalks bond order entitled, “Bond Order Authorizing the Issuance of $25,000,000 General Obligation Streets and Sidewalks Bonds of the City of Hickory, North Carolina,” which was introduced at the meeting of the City Council held on July 15, 2014.
5. Issuance of General Obligation Bond Order for $15,000,000 of Economic Development Bonds. - The public hearing is conducted to authorize the issuance of each general bond and to discuss all matters concerning the proposed general obligation bond orders. The proposed bond referendum consists of $15,000,000 of Economic Development Bonds. Funds will be used to provide land and improvements suitable for industrial and commercial purposes, including the acquisition of land rights-of-way and easements for industrial and commercial purposes and providing public infrastructure and facilities in order to make land and improvements suitable for industrial and commercial purposes. Authorize the issuance of a general obligation bond order for $15,000,000 of Economic Development Bonds. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 25, 2014.
a. Request City Council adopt the Bond Orders without change or amendment and direct the City Clerk to publish a notice of adoption, as prescribed by the Local Government Bond Act, of the general obligation economic development bond order entitled “Bond Order Authorizing the Issuance of $15,000,000 General Obligation Economic Development Bonds of the City of Hickory, North Carolina,” which was introduced at the meeting of the City Council held on July 15, 2014.
New Business - Departmental Reports:
1. Approval of a Resolution Setting a Special Bond Referendum, Directing the Publication of Notice of a Special Bond Referendum, and Providing Notification to the Catawba County Board of Elections. - The bond orders will be submitted to the voters of the City of Hickory, North Carolina for their approval or disapproval in order to comply with the constitution and laws of North Carolina at the November 4, 2014 Special Bond Referendum. A Notice “City of Hickory, North Carolina Notice of Special Bond Referendum” will be published in the Hickory Daily Record at least twice by the City Clerk to notify qualified voters of the November 4, 2014 Special Bond Referendum. The City Clerk will deliver a certified copy of the Resolution setting the Special Bond Referendum to the Catawba County Board of Elections. The Board of Elections will print and distribute the ballots and provide equipment to hold the November 4, 2014 Referendum. Staff recommends approval of a Resolution to set a Special Bond Referendum, publish notice of a Special Bond Referendum, and notify the Catawba County Board of Elections.
2. Consider Hickory Housing Authority’s request to have the City of Hickory make Application for a Choice Neighborhoods Planning Grant from the US Department of Housing and Urban Development. - Hickory Housing Authority contacted City Staff June 30th about applying for a Choice Neighborhoods Planning Grant. This Federal program through HUD provides up to $500,000 in funding to eligible municipalities to develop comprehensive neighborhood transformation plans in areas that contain distressed public housing. The project will emphasize revitalization of public housing sites, develop a plan for new mixed income housing in the target area and in other locations across Catawba County, and address other needed infrastructure improvements. Hickory Housing Authority has contracted with the Wooten Company to assist in the preparation of the grant application. The required grant match will be provided by Hickory Housing Authority. The City of Hickory would be the main applicant for the grant with Hickory Housing Authority as the co-applicant. The grant is for planning services only. A future application would need to be made to HUD for implementation of funds. Andrea Surratt Presentation.
Dr. Myles, member of the board of the Hickory Public Housing Authority, allowed to address the City Council.
Larry Pope, former member of the board of the Hickory Public Housing Authority, not allowed to address the City Council and ruled out of order by the City Council.
3. Park 1764 Option Payment. - With County Commissioner approval of zoning of the 178 acres, Park 1764 progresses to the step of the first payment of the option agreements. The option costs are shared 50-50 with Catawba County and tie up the property for seven years. Hickory’s share of the first year option payment is $103,189 and is recommended to be transferred from General Fund Contingency.
4. Quarterly Financial Report - presentation by Warren Wood
General Comments
Mayor Wright commented that he had been in D.C. over the weekend visiting his son, in a multiuse neighborhood. His son lives on the third floor of a multiuse building, and on the first floor is a 7-Eleven. Next to the 7-Eleven is a Verizon store, and then down the street is an entire city block that is a shopping mall with Target, Best Buy and a number of other large names. That area is considered a success story because in addition to the mixed use, they have greatly changed the proportion of low income to middle and high income people. A pretty decent place.
Mr. Berry recognized students in attendance, Thomas McBrayer and Cole Lackey. Cole will be doing an internship with the City and is a rising senior at Hickory High, a bright capable young man that is interested in local government and politics. Cole will receive High School credit for his internship with the City this fall.
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.
City Council Agenda - August 5, 2014 Thoughts about the Hickory City Council meeting - August 5, 2014
----------------------------------------------------------------------------------------------
The Hound's Notes:
1) Long Agenda, but they rolled through it pretty quickly, other than the Hickory Housing Authority Grant issue and Warren Woods presentation on the Quarterly Financial Report.
2) Want to reiterate my initial thought about this meeting from the other night that you can find in the link above.
3) Quarterly Financial report may look good in a static and targeted fashion, but when assessed within the current overarching environment it sure looks like a Dead Cat Bounce to me. Please factor in inflation in the numbers. The CPI may be showing 2% to 3% inflation over the past 7 years, but that isn't what we are experiencing in the real world. You've been to the grocery store... You've paid your utility bills... Warren shows deflation in the housing market = 6% decrease in assessments in the upcoming year, but think about people who bought their houses before the Real Estate Depression. Many are paying mortgages based upon those bubble prices at the same time that their income is stagnant or declining... and Hickory Inc. and Catawba County Inc. will raise taxes to achieve Revenue Neutrality... speaking of which, have you seen the number of homes on the market around here and it has begun to swell in Northwest Hickory now. In Hickory, we have been claiming that Fast Food restaurants = Economic growth. That is idiocy.
*** I will re-edit to put in the direct links to the different parts of the meeting this evening. I've had delays in producing this material due to other obligations, including the situation with my maternal grandmother. I will do my best to provide information as soon as possible, but there may be delays for now and the immediate future. Peace and Thanks!
----------------------------------------------------------------------------------------------
Invocation by Alderman Danny Seaver
Consent Agenda:
Alderman Zagaroli had Item I removed from the Consent Agenda - I. Approval of a Contract with Varrow, Inc. in the Amount of $367,114.50 for Data Center Upgrades to the City’s Network. - his question related to how the bidding process worked and was awarded. There was a limited discussion before the Council voted unanimously to approve this contract along with the rest of the agenda.
New Business - Public Hearings
1. Resolution Confirming and Levying Assessment Along a portion of 8th Street Drive NW, Petition Number 01-14 (Curb and Gutter). - The City Clerk received a petition from the owner of property along 8th Street Drive NW to install curb and gutter along a portion of their street per Section 29-2 of the Hickory Code of Ordinances. The City Council adopted a Resolution Directing that Street Improvement Project be Undertaken on April 1, 2014, and the project was completed on June 12, 2014. The Preliminary Assessment Roll for Petition No. 01-14 has been prepared based on the curb and gutter constructed along 8th Street Drive NW. Staff recommends that Resolution Confirming and Levying Assessment be approved. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 18, 2014.
2. Consideration of Rezoning Petition 14-01 for Property Located at 1218 Bugle Lane, Newton. - The City of Hickory has petitioned for rezoning of .479 acres of property located at 1218 Bugle Lane. The petition is to rezone the property from Catawba County R-20 Residential to City of Hickory Low Density Residential – 1 (R-1). The requested rezoning has been put forth to assign City zoning to a property that was recently annexed. Hickory Regional Planning Commission held a public hearing to consider the petition on June 25, 2014, and voted unanimously to forward a recommendation of approval to Hickory City Council. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 25, 2014 and August 1, 2014.
3. Consideration of Adoption of ABC Permit / Local Opinion Ordinance. - Hickory Police Department requests adoption of an ordinance authorizing access to State Bureau of Investigation / Division of Criminal Information (DCI) system for the purpose of obtaining criminal history information on ABC permit applicants to determine their suitability to be an ABC permit holder within the City of Hickory. North Carolina Administrative Code requires the City of the local law
enforcement agency to have an ordinance in place authorizing access to criminal record information on all persons applying for ABC permits for proposed locations within their jurisdiction for the agency to be granted access to computerized DCI information for this purpose. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 18, 2014.
4. Issuance of General Obligation Bond Order for $25,000,000 of Streets and Sidewalks Bonds. - The public hearing is conducted to authorize the issuance of each general bond order and to discuss all matters concerning the proposed general obligation bond orders. The proposed bond referendum consists of $25,000,000 of Streets and Sidewalks Bonds. Funds will be used to construct, enlarge and improve certain streets, roads and intersections including the costs of studies, plans and designs. The improvements will include streetscape and pedestrian improvements, signage, landscaping, pedestrian/bicycle paths and relocation of utilities. Funds will be used to acquire land, rights-of-way and easements as necessary for each Inspiring Spaces project. Authorize the issuance of a general obligation bond order for $25,000,000 of Streets and Sidewalks Bonds. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 25, 2014.
a. Request City Council adopt the Bond Orders without change or amendment and direct the City Clerk to publish a notice of adoption, as prescribed by the Local Government Bond Act, of the general obligation streets and sidewalks bond order entitled, “Bond Order Authorizing the Issuance of $25,000,000 General Obligation Streets and Sidewalks Bonds of the City of Hickory, North Carolina,” which was introduced at the meeting of the City Council held on July 15, 2014.
5. Issuance of General Obligation Bond Order for $15,000,000 of Economic Development Bonds. - The public hearing is conducted to authorize the issuance of each general bond and to discuss all matters concerning the proposed general obligation bond orders. The proposed bond referendum consists of $15,000,000 of Economic Development Bonds. Funds will be used to provide land and improvements suitable for industrial and commercial purposes, including the acquisition of land rights-of-way and easements for industrial and commercial purposes and providing public infrastructure and facilities in order to make land and improvements suitable for industrial and commercial purposes. Authorize the issuance of a general obligation bond order for $15,000,000 of Economic Development Bonds. This public hearing was advertised in a newspaper having general circulation in the Hickory area on July 25, 2014.
a. Request City Council adopt the Bond Orders without change or amendment and direct the City Clerk to publish a notice of adoption, as prescribed by the Local Government Bond Act, of the general obligation economic development bond order entitled “Bond Order Authorizing the Issuance of $15,000,000 General Obligation Economic Development Bonds of the City of Hickory, North Carolina,” which was introduced at the meeting of the City Council held on July 15, 2014.
New Business - Departmental Reports:
1. Approval of a Resolution Setting a Special Bond Referendum, Directing the Publication of Notice of a Special Bond Referendum, and Providing Notification to the Catawba County Board of Elections. - The bond orders will be submitted to the voters of the City of Hickory, North Carolina for their approval or disapproval in order to comply with the constitution and laws of North Carolina at the November 4, 2014 Special Bond Referendum. A Notice “City of Hickory, North Carolina Notice of Special Bond Referendum” will be published in the Hickory Daily Record at least twice by the City Clerk to notify qualified voters of the November 4, 2014 Special Bond Referendum. The City Clerk will deliver a certified copy of the Resolution setting the Special Bond Referendum to the Catawba County Board of Elections. The Board of Elections will print and distribute the ballots and provide equipment to hold the November 4, 2014 Referendum. Staff recommends approval of a Resolution to set a Special Bond Referendum, publish notice of a Special Bond Referendum, and notify the Catawba County Board of Elections.
2. Consider Hickory Housing Authority’s request to have the City of Hickory make Application for a Choice Neighborhoods Planning Grant from the US Department of Housing and Urban Development. - Hickory Housing Authority contacted City Staff June 30th about applying for a Choice Neighborhoods Planning Grant. This Federal program through HUD provides up to $500,000 in funding to eligible municipalities to develop comprehensive neighborhood transformation plans in areas that contain distressed public housing. The project will emphasize revitalization of public housing sites, develop a plan for new mixed income housing in the target area and in other locations across Catawba County, and address other needed infrastructure improvements. Hickory Housing Authority has contracted with the Wooten Company to assist in the preparation of the grant application. The required grant match will be provided by Hickory Housing Authority. The City of Hickory would be the main applicant for the grant with Hickory Housing Authority as the co-applicant. The grant is for planning services only. A future application would need to be made to HUD for implementation of funds. Andrea Surratt Presentation.
Dr. Myles, member of the board of the Hickory Public Housing Authority, allowed to address the City Council.
Larry Pope, former member of the board of the Hickory Public Housing Authority, not allowed to address the City Council and ruled out of order by the City Council.
3. Park 1764 Option Payment. - With County Commissioner approval of zoning of the 178 acres, Park 1764 progresses to the step of the first payment of the option agreements. The option costs are shared 50-50 with Catawba County and tie up the property for seven years. Hickory’s share of the first year option payment is $103,189 and is recommended to be transferred from General Fund Contingency.
4. Quarterly Financial Report - presentation by Warren Wood
General Comments
Mayor Wright commented that he had been in D.C. over the weekend visiting his son, in a multiuse neighborhood. His son lives on the third floor of a multiuse building, and on the first floor is a 7-Eleven. Next to the 7-Eleven is a Verizon store, and then down the street is an entire city block that is a shopping mall with Target, Best Buy and a number of other large names. That area is considered a success story because in addition to the mixed use, they have greatly changed the proportion of low income to middle and high income people. A pretty decent place.
Mr. Berry recognized students in attendance, Thomas McBrayer and Cole Lackey. Cole will be doing an internship with the City and is a rising senior at Hickory High, a bright capable young man that is interested in local government and politics. Cole will receive High School credit for his internship with the City this fall.
Friday, August 8, 2014
Economic Relevance: Complexity, Manipulation, and Instability
Expert Economist: U.S Is Heading Toward Financial Ruin - Infowars - August 7, 2014
Youtube Commenter quote: Government is like fire. If you control it it will give you light, keep you warm, cook your food, warm your bath water etc. but if you let it go out of control it will burn everything within it's reach feeding itself.
(Wikipedia) - Bill Bonner is an American author of books and articles on economic and financial subjects. He is the founder and president of Agora Publishing, and author of a daily financial column, Diary of a Rogue Economist.[1] Bonner is also co-founder and regular contributor to The Daily Reckoning. And he has written articles for the news and opinion blog, LewRockwell.com.[2] and MoneyWeek magazine.[3]
Bill's latest work is entitled Hormegeddon (the word comes from the scientific process of hormesis---which is what happens when a small dose of something produces a favorable effect, but anything larger makes one sick ... the process that is tearing America apart today.
Why the Government Views You As Collateral Damage - Daily Reckoning - Bill Bonner - July 29, 2014 - The illusions, mistakes and misconceptions of central planners take their toll in a great variety of ways — mostly as costly nuisances. Occasionally, when they are particularly ambitious, they make the history books. Napoleon’s march on Moscow. Mao’s great famine. The Soviet Union’s 70-year economic experiment. These fiascos are caused by well-meaning, smart public officials. They are the Hell to which the road paved with good intentions leads... errors that might have been revealed and corrected are not discovered. The future has to wait. Even when they are applied with ruthless thoroughness, central plans inevitably and eventually go FUBAR. No ‘workers’ paradise’ ever happens. The War on Drugs (or Poverty… or Crime… or Terror… or Cancer) ends in a defeat, not a victory. Unemployment does not go down. The ‘war to end war’ doesn’t end war. The Domino Theory falls; the dominoes don’t.
Or, if any of these grand programs ‘succeeds,’ it does so by undoing previous plans often at a cost that is far out of balance with the reward. World War II is an example of central planning that seemed to work. But the Allies were merely nullifying the efforts of more ambitious central planners in Germany and Japan. Generally, life on planet Earth is not so ‘rational’ that it lends itself to simpleminded, heavy-handed intervention by the naïve social engineer...
Large-scale central planning can be effective, but only by pulverizing the delicate fabric of evolved civilized life. It is a future that practically no one wants, because it means destroying the many different futures already in the works — marriages, businesses, babies, baptisms, hunting trips, shopping, investment, and all the other activities of normal life. Not all central planning produces calamities on that scale, of course. But all, to the extent they are effective, are repulsive. The more they achieve the planners’ goals, the more they interfere with private goals, and the more they retard or destroy the progress of the human race. Still, this view I am putting forth is hardly accepted wisdom.
Youtube Commenter quote: Government is like fire. If you control it it will give you light, keep you warm, cook your food, warm your bath water etc. but if you let it go out of control it will burn everything within it's reach feeding itself.
(Wikipedia) - Bill Bonner is an American author of books and articles on economic and financial subjects. He is the founder and president of Agora Publishing, and author of a daily financial column, Diary of a Rogue Economist.[1] Bonner is also co-founder and regular contributor to The Daily Reckoning. And he has written articles for the news and opinion blog, LewRockwell.com.[2] and MoneyWeek magazine.[3]
Bill's latest work is entitled Hormegeddon (the word comes from the scientific process of hormesis---which is what happens when a small dose of something produces a favorable effect, but anything larger makes one sick ... the process that is tearing America apart today.
Why the Government Views You As Collateral Damage - Daily Reckoning - Bill Bonner - July 29, 2014 - The illusions, mistakes and misconceptions of central planners take their toll in a great variety of ways — mostly as costly nuisances. Occasionally, when they are particularly ambitious, they make the history books. Napoleon’s march on Moscow. Mao’s great famine. The Soviet Union’s 70-year economic experiment. These fiascos are caused by well-meaning, smart public officials. They are the Hell to which the road paved with good intentions leads... errors that might have been revealed and corrected are not discovered. The future has to wait. Even when they are applied with ruthless thoroughness, central plans inevitably and eventually go FUBAR. No ‘workers’ paradise’ ever happens. The War on Drugs (or Poverty… or Crime… or Terror… or Cancer) ends in a defeat, not a victory. Unemployment does not go down. The ‘war to end war’ doesn’t end war. The Domino Theory falls; the dominoes don’t.
Or, if any of these grand programs ‘succeeds,’ it does so by undoing previous plans often at a cost that is far out of balance with the reward. World War II is an example of central planning that seemed to work. But the Allies were merely nullifying the efforts of more ambitious central planners in Germany and Japan. Generally, life on planet Earth is not so ‘rational’ that it lends itself to simpleminded, heavy-handed intervention by the naïve social engineer...
Large-scale central planning can be effective, but only by pulverizing the delicate fabric of evolved civilized life. It is a future that practically no one wants, because it means destroying the many different futures already in the works — marriages, businesses, babies, baptisms, hunting trips, shopping, investment, and all the other activities of normal life. Not all central planning produces calamities on that scale, of course. But all, to the extent they are effective, are repulsive. The more they achieve the planners’ goals, the more they interfere with private goals, and the more they retard or destroy the progress of the human race. Still, this view I am putting forth is hardly accepted wisdom.
Thursday, August 7, 2014
Sociopaths at the top - Wanda Arnold
Hound notes: Wanda Arnold wrote the following to me in relation to my article from this past Saturday, August 2, 2014 - The Master BSer
Thom, I want to share with you two articles I read yesterday along the same lines as your post. In the first by Paul Rosenberg on July 24, 2014, “They Walk among Us,” Rosenberg describes the sociopath. Two percent of the human population are sociopaths (psychopaths in the clinical literature). Of these 75% are male and 25% female. Plenty of research has been done on these people and it has been proven that they have different brains, thus their difference is organic and can’t be cured. The part of the brain associated with emotional reactions and decision making is abnormally small.
The sociopath cannot feel empathy for other people, thus they feel no remorse. To a sociopath, remorse is weakness. They can readily do whatever gets them what they want because they have no conscience. They understand that they are different and will try to hide this defect by faking emotion, but if you are alert you can detect that something is not quite right about their responses.
They are also excellent liars. They are so good at lying that often they pass lie detector tests. They do not have the internal feedback system that most people have. They never feel embarrassed. A sociopath will work in calculated ways to maintain other people’s good opinions of him and often maintain a group of people around them who believe wholeheartedly that he is a good, kind, honest person.
Like most people, I had the tendency to think that all people have some good in them, but now I see that while this is true of 98% of the population, there are those that have absolutely no good and should be thought of as evil. I was also unaware that there are so many sociopaths in the general population. We should expect one person in 50 to be this way.
The part of the article that really struck me was this: “Governments, like all hierarchies, are havens for sociopaths. And governments, over the last century, killed approximately 260 million people.” This is a rational explanation for those willing to send our young people to war for profit, who kill millions and call it “collateral damage,” the cowards who send drones to do the dirty work, the people who offshored all of our jobs for bigger profit and ruined the employment for Americans, the people who tax the poor and middle class but exempt themselves, the people who poison our food and water, the people who are destroying the American Constitution to pull more and more control into their own hands.
The second article explains why our government is currently in such a state. “No Matter Who Wins, a Sociopath Is Elected,” by Doug French, a contributing editor of the Doug Casey newsletter. He states the obvious, that politicians don’t seek office for the money. Most of them already have money. Even those who start with the best of intentions and are clearly outstanding in other fields of endeavor will soon see that success in politics will require lying, cheating, manipulating, stealing and killing. All ethics are suspended and good sense departs.
So why do these people seek office? Over-sized egos, desire for public adulation, control over other people, need for status, fame, recognition, attention…the ends justify the means. French goes on to say, “What Doug Casey calls the “moral rot” in Washington, DC and every statehouse around the country is due to, as Casey writes, ‘a certain class of people—sociopaths—being fully in control of major American institutions. Their beliefs and attitudes are insinuated throughout the economic, political, intellectual, and psychological/spiritual fabric of the US.’
So it won’t do us much good to naively search for just the “right candidate.” Maybe we need to concentrate on other ways to keep the sociopaths on the sidelines: small government, term limits, transparency, strict enforcement of the Bill of Rights, getting money out of politics, protection of whistleblowers, freedom of the Internet, and educational control at the local level.
In conclusion, we need to remember that 98% of the people around us are good people. We far outnumber the 2%. Only when we come to understand what the problem is (sociopaths are running our government at the top) can we begin to do something about it. Only when we refuse to cooperate with evil can any progress be made.
Thom, I want to share with you two articles I read yesterday along the same lines as your post. In the first by Paul Rosenberg on July 24, 2014, “They Walk among Us,” Rosenberg describes the sociopath. Two percent of the human population are sociopaths (psychopaths in the clinical literature). Of these 75% are male and 25% female. Plenty of research has been done on these people and it has been proven that they have different brains, thus their difference is organic and can’t be cured. The part of the brain associated with emotional reactions and decision making is abnormally small.
The sociopath cannot feel empathy for other people, thus they feel no remorse. To a sociopath, remorse is weakness. They can readily do whatever gets them what they want because they have no conscience. They understand that they are different and will try to hide this defect by faking emotion, but if you are alert you can detect that something is not quite right about their responses.
They are also excellent liars. They are so good at lying that often they pass lie detector tests. They do not have the internal feedback system that most people have. They never feel embarrassed. A sociopath will work in calculated ways to maintain other people’s good opinions of him and often maintain a group of people around them who believe wholeheartedly that he is a good, kind, honest person.
Like most people, I had the tendency to think that all people have some good in them, but now I see that while this is true of 98% of the population, there are those that have absolutely no good and should be thought of as evil. I was also unaware that there are so many sociopaths in the general population. We should expect one person in 50 to be this way.
The part of the article that really struck me was this: “Governments, like all hierarchies, are havens for sociopaths. And governments, over the last century, killed approximately 260 million people.” This is a rational explanation for those willing to send our young people to war for profit, who kill millions and call it “collateral damage,” the cowards who send drones to do the dirty work, the people who offshored all of our jobs for bigger profit and ruined the employment for Americans, the people who tax the poor and middle class but exempt themselves, the people who poison our food and water, the people who are destroying the American Constitution to pull more and more control into their own hands.
The second article explains why our government is currently in such a state. “No Matter Who Wins, a Sociopath Is Elected,” by Doug French, a contributing editor of the Doug Casey newsletter. He states the obvious, that politicians don’t seek office for the money. Most of them already have money. Even those who start with the best of intentions and are clearly outstanding in other fields of endeavor will soon see that success in politics will require lying, cheating, manipulating, stealing and killing. All ethics are suspended and good sense departs.
So why do these people seek office? Over-sized egos, desire for public adulation, control over other people, need for status, fame, recognition, attention…the ends justify the means. French goes on to say, “What Doug Casey calls the “moral rot” in Washington, DC and every statehouse around the country is due to, as Casey writes, ‘a certain class of people—sociopaths—being fully in control of major American institutions. Their beliefs and attitudes are insinuated throughout the economic, political, intellectual, and psychological/spiritual fabric of the US.’
So it won’t do us much good to naively search for just the “right candidate.” Maybe we need to concentrate on other ways to keep the sociopaths on the sidelines: small government, term limits, transparency, strict enforcement of the Bill of Rights, getting money out of politics, protection of whistleblowers, freedom of the Internet, and educational control at the local level.
In conclusion, we need to remember that 98% of the people around us are good people. We far outnumber the 2%. Only when we come to understand what the problem is (sociopaths are running our government at the top) can we begin to do something about it. Only when we refuse to cooperate with evil can any progress be made.
Tuesday, August 5, 2014
Thoughts about the Hickory City Council meeting - August 5, 2014
Rolling right through it. Halfway through the public hearings. All the referendum issues flow through with zero debate.
Larry Pope gets shut down speaking about a housing issue, because it was a departmental report.
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1) Tonight's meeting flowed pretty fast. Alderman Zagaroli had Item I removed from the Consent Agenda - I. Approval of a Contract with Varrow, Inc. in the Amount of $367,114.50 for Data Center Upgrades to the City’s Network. - his question related to how the bidding process worked and was awarded. There was a limited discussion before the Council voted unanimously to approve this contract.
2) All of the Public Hearings were through in minutes with no debate. This includes the items related to the Sidewalk and Startown Business Park referendums. The Mayor had a few comments.
3) Public Hearing #2 - The Newton/Hickory property is in the City Manager's neighborhood. It has been told to me that the only reason that property was ever annexed by Hickory is because City Manager Berry owned the property there and when the Council decided they wanted Mick, then they had to annex his property, because the City Manager has to live in Hickory Proper. If Mick had not lived there, then that neiborhood was in Newton's ETJ and would have been annexed by Newton. Subsequently the properties there are now annexed into Hickory with a Newton address.
4) Public Hearing #3 - Captain Thurmond Whisnant stated that they have been accessing the State's criminal database already to look into issues with ABC permit applicants. New legislation mandates that the city pass an ordinance in order to be granted access to the Division of Criminal Information (DCI) system for the purpose of obtaining criminal history information on ABC permit applicants to determine their suitability to be an ABC permit holder within the City of Hickory.
5) Departmental Report #1 about language for the upcoming referendum was through in moments.
6) Departmental Report #2 considered Hickory Housing Authority’s request to have the City of Hickory make Application for a Choice Neighborhoods Planning Grant from the US Department of Housing and Urban Development. - Assistant City Manager Andrea Surratt made the initial presentation about this grant. Her information was pretty vague. The council granted Dr. Sidney Myles the right to speak and he essentially said that the housing authority is going to essentially change Public Housing to where it is no longer Public Housing. They are going to tear down the current housing and disburse housing in the city. That is what the grant monies would be used for. To develop a plan to do that.
When Dr. Myles was through, Larry Pope wanted to speak, but the Mayor would not allow Larry to do so. They called him and voted him out of order. The Mayor said that Larry had had his chance to speak (during Persons Requesting to Be Heard).
Hound Note: I couldn't help it when I saw where the Mayor was taking this once again and I asked why they couldn't grant Larry the ability to speak during Matters not on the Agenda. The Mayor would not listen and said I was out of order.
It pretty much disgusted me, because I have seen how Rudy's Decorum is constantly arbitrarily administered. I have seen them allow people to speak out of turn before, but it is when that person supports the City's position/agenda.
A couple months ago Ray Hunt gave me a "Taxes are legalized stealing" t-shirt. I was setting up my camera and I look up and the Mayor is barking at me, "We don't allow that in here." I look up and see it's directed at me. I'm like, "What?" The Mayor gets all bug eyed and is like, "We don't allow signs in here!!!" I look to my right and Ray had draped that t-shirt across the seat to my right between me and Richard Garrison. I thanked Ray for getting me in trouble. Point is that it wasn't a sign and besides there aren't any such rules against t-shirts. Rudy makes the rules up as he goes and if he doesn't like you. then he will try to intimidate you. Go back to the last meeting and look how he shows deference to the Ross's compared to how he treats Larry. And I think highly of the Ross's too, but it was obvious that this council has decided to make an example out of Larry.
Some of y'all might think that is alright, but what if you lived in a community where the shoe was on the other foot? What if some of you "Conservative Christians" lived in a "Liberal" community where the town council aimed to shut you down and made comments in a public forum related to every comment you make and then they won't allow a discussion.
In this world, some of us aren't going to get along. It isn't the authority of the government to bully people they don't like. That is what despots do. The Mayor has said that he doesn't want anyone leaving these meetings feeling like they had something to say, but they weren't allowed to be heard -- huh? This could have been handled a lot better. That isn't second guessing.
I'm not saying that Larry is always right and that I always agree with him. In talking to him, I have told him when I don't agree with him. I've asked him not to go and get himself arrested. I listen to him and he listens to me. It is called respect. It is called courtesy.
7) In Departmental Report #4 Warren Wood basically gave rave revenues about Hickory Inc.'s budget and the local economy.
Larry Pope gets shut down speaking about a housing issue, because it was a departmental report.
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1) Tonight's meeting flowed pretty fast. Alderman Zagaroli had Item I removed from the Consent Agenda - I. Approval of a Contract with Varrow, Inc. in the Amount of $367,114.50 for Data Center Upgrades to the City’s Network. - his question related to how the bidding process worked and was awarded. There was a limited discussion before the Council voted unanimously to approve this contract.
2) All of the Public Hearings were through in minutes with no debate. This includes the items related to the Sidewalk and Startown Business Park referendums. The Mayor had a few comments.
3) Public Hearing #2 - The Newton/Hickory property is in the City Manager's neighborhood. It has been told to me that the only reason that property was ever annexed by Hickory is because City Manager Berry owned the property there and when the Council decided they wanted Mick, then they had to annex his property, because the City Manager has to live in Hickory Proper. If Mick had not lived there, then that neiborhood was in Newton's ETJ and would have been annexed by Newton. Subsequently the properties there are now annexed into Hickory with a Newton address.
4) Public Hearing #3 - Captain Thurmond Whisnant stated that they have been accessing the State's criminal database already to look into issues with ABC permit applicants. New legislation mandates that the city pass an ordinance in order to be granted access to the Division of Criminal Information (DCI) system for the purpose of obtaining criminal history information on ABC permit applicants to determine their suitability to be an ABC permit holder within the City of Hickory.
5) Departmental Report #1 about language for the upcoming referendum was through in moments.
6) Departmental Report #2 considered Hickory Housing Authority’s request to have the City of Hickory make Application for a Choice Neighborhoods Planning Grant from the US Department of Housing and Urban Development. - Assistant City Manager Andrea Surratt made the initial presentation about this grant. Her information was pretty vague. The council granted Dr. Sidney Myles the right to speak and he essentially said that the housing authority is going to essentially change Public Housing to where it is no longer Public Housing. They are going to tear down the current housing and disburse housing in the city. That is what the grant monies would be used for. To develop a plan to do that.
When Dr. Myles was through, Larry Pope wanted to speak, but the Mayor would not allow Larry to do so. They called him and voted him out of order. The Mayor said that Larry had had his chance to speak (during Persons Requesting to Be Heard).
Hound Note: I couldn't help it when I saw where the Mayor was taking this once again and I asked why they couldn't grant Larry the ability to speak during Matters not on the Agenda. The Mayor would not listen and said I was out of order.
It pretty much disgusted me, because I have seen how Rudy's Decorum is constantly arbitrarily administered. I have seen them allow people to speak out of turn before, but it is when that person supports the City's position/agenda.
A couple months ago Ray Hunt gave me a "Taxes are legalized stealing" t-shirt. I was setting up my camera and I look up and the Mayor is barking at me, "We don't allow that in here." I look up and see it's directed at me. I'm like, "What?" The Mayor gets all bug eyed and is like, "We don't allow signs in here!!!" I look to my right and Ray had draped that t-shirt across the seat to my right between me and Richard Garrison. I thanked Ray for getting me in trouble. Point is that it wasn't a sign and besides there aren't any such rules against t-shirts. Rudy makes the rules up as he goes and if he doesn't like you. then he will try to intimidate you. Go back to the last meeting and look how he shows deference to the Ross's compared to how he treats Larry. And I think highly of the Ross's too, but it was obvious that this council has decided to make an example out of Larry.
Some of y'all might think that is alright, but what if you lived in a community where the shoe was on the other foot? What if some of you "Conservative Christians" lived in a "Liberal" community where the town council aimed to shut you down and made comments in a public forum related to every comment you make and then they won't allow a discussion.
In this world, some of us aren't going to get along. It isn't the authority of the government to bully people they don't like. That is what despots do. The Mayor has said that he doesn't want anyone leaving these meetings feeling like they had something to say, but they weren't allowed to be heard -- huh? This could have been handled a lot better. That isn't second guessing.
I'm not saying that Larry is always right and that I always agree with him. In talking to him, I have told him when I don't agree with him. I've asked him not to go and get himself arrested. I listen to him and he listens to me. It is called respect. It is called courtesy.
7) In Departmental Report #4 Warren Wood basically gave rave revenues about Hickory Inc.'s budget and the local economy.
Economic Stories of Relevance in Today's World -- August 3, 2014
*** Hound Notes: Have put this out a little late, because over here where I live the power was out Saturday night into Sunday morning past 4am. Seems a couple cars got into an accident up at Galaxy on Springs Road, here in Hickory, and took out a transformer pole. That, along with other obligations, had me putting out the City Council Agenda Monday morning and today. I am putting out Economic Stories of Relevance.
Economic Stories of Relevance includes two very significant interviews. One interview is with Dr. Paul Craig Roberts relating to the current state of the economy and the fraudulent numbers that have been put out by the government. The second interview is with Andrew Huszar, who is a former Federal Reserve Member & former Managing Director at Morgan Stanley. He helped to create the initial Quantitative Easing program. He talks about the dark days of September 2008 when the banks were literally insolvent. If you want an eye opening experience, then you should listen to these two interviews. You really need to study these two interviews. These gentleman know what has happened, is happening, and what most likely is going to happen in the future.
Andrew Huszar - King World news Interview - August 3, 2014 - Former Fed Member & Former Managing Dir. At Morgan Stanley - Until June, 2012, Andrew was Managing Director and U.S. Head of OTC Derivatives Client Clearing for Morgan Stanley. In this role, Andrew reorganized and managed a business encompassing sales, financial planning and analysis, product development, on-boarding, and client service functions. Previously, Andrew managed for the Federal Reserve Bank of New York ("FRBNY") the $1.25 Trillion Agency MBS Purchase Program (the centerpiece of "QE1"). In this role, Andrew managed the program's portfolio design and trading strategy, as well as the creation of a permanent, in-house Federal Reserve MBS business platform, encompassing front, middle and back office components. By way of additional professional background, Andrew was previously a Senior Vice President at RBS Greenwich Capital and co-head of the Transaction Advisory Group, specializing in the Basel II Capital Rules. Prior to RBS, he was an Examining Officer in the FRBNY's Bank Supervision Group, leading a Market and Liquidity analytics team assessing financial risk exposures of large U.S. financial institutions. Andrew began his career at the FRBNY as a lawyer supporting various business lines.
Paul Craig Roberts - King World News Interview - August 2, 2014 - From early 1981 to January 1982 he served as Assistant Secretary of the Treasury for Economic Policy. President Ronald Reagan and Treasury Secretary Donald Regan credited him with a major role in the Economic Recovery Tax Act of 1981, and he was awarded the Treasury Department's Meritorious Service Award for "outstanding contributions to the formulation of United States economic policy."
David Stockman: The Collapse of the American Imperium - A perfect storm of policy failures - Adam Taggart - August 3, 2014 - David Stockman, former director of the OMB under President Reagan, former US Representative, best-selling author of The Great Deformation, and veteran financier is an insider's insider. Few people understand the ways in which Washington DC, The Fed, and Wall Street work and intersect better than he does. He's extremely concerned by the "perfect storm" he sees of concurrent failures in US policy across foreign, monetary, economic, and fiscal fronts:
Economic Stories of Relevance includes two very significant interviews. One interview is with Dr. Paul Craig Roberts relating to the current state of the economy and the fraudulent numbers that have been put out by the government. The second interview is with Andrew Huszar, who is a former Federal Reserve Member & former Managing Director at Morgan Stanley. He helped to create the initial Quantitative Easing program. He talks about the dark days of September 2008 when the banks were literally insolvent. If you want an eye opening experience, then you should listen to these two interviews. You really need to study these two interviews. These gentleman know what has happened, is happening, and what most likely is going to happen in the future.
Andrew Huszar - King World news Interview - August 3, 2014 - Former Fed Member & Former Managing Dir. At Morgan Stanley - Until June, 2012, Andrew was Managing Director and U.S. Head of OTC Derivatives Client Clearing for Morgan Stanley. In this role, Andrew reorganized and managed a business encompassing sales, financial planning and analysis, product development, on-boarding, and client service functions. Previously, Andrew managed for the Federal Reserve Bank of New York ("FRBNY") the $1.25 Trillion Agency MBS Purchase Program (the centerpiece of "QE1"). In this role, Andrew managed the program's portfolio design and trading strategy, as well as the creation of a permanent, in-house Federal Reserve MBS business platform, encompassing front, middle and back office components. By way of additional professional background, Andrew was previously a Senior Vice President at RBS Greenwich Capital and co-head of the Transaction Advisory Group, specializing in the Basel II Capital Rules. Prior to RBS, he was an Examining Officer in the FRBNY's Bank Supervision Group, leading a Market and Liquidity analytics team assessing financial risk exposures of large U.S. financial institutions. Andrew began his career at the FRBNY as a lawyer supporting various business lines.
King World News Audio Interview
He was responsible for QE1 to access emergency funds. Had left the Fed in early '08 was on Wall Street. 2008 were harry days. Every U.S. bank after Lehman were done. They couldn't fund their operations. Fed was under the gun. This has clouded their judgment. Standards were changing by the minute - fitting square pegs into round holes - No cash they were done.
The Fed has done extraordinary moves over the past 5 years. Balance sheet has grown from $800 billion to $4.4 trillion. Major issues with the Fed going forward are internal. Fed has printed a lot of money. It is a the banks (liquidity). Instability can be created by trying to use unprecedented tools to reel that money back in. The Fed owns 30% of the Federal Governments debt and 15% of the U.S. housing market. This instability can lead to a loss of confidence in the dollar and lead to inflation. The leverage that created the crisis in 2008 is still there, but instead of being with the banks, it is now at the Fed.
We are in line for tough times in the financial markets. Federal Government money has been pumped into the stock market and this is going to come to an end. The last 5 years have been a missed opportunity. 2008 revealed an overly financialized U.S. economy. Banks are 16x more concentrated than in 2008. We haven't built and developed human and physical capital. Individuals grew 2 1/2 times more indebted from 1998 to 2008. Credit bubble has popped. Main street is not thriving. Last five years have been the Fed pumping money into the economy when there has been gridlock in Washington and a lack of structural reform, What we see not is that the can has been kicked down the road and the problems from 2008 still exist.
Our economy is 5th in the world terms of competitiveness and in 2008 we were 1st. We are addicted to easy Money. There has been no change in Wall Street... denial and no accountability. Up to the late 90s, 90% of JP Morgan's portfolio were loans, now it is 60% and the rest is derivatives. Wall Street is not properly pricing risks. Six big banks are at the center of the system. Money printing can't go on forever. We aren't making investments in human and physical capital. We need to confront reality.
Paul Craig Roberts - King World News Interview - August 2, 2014 - From early 1981 to January 1982 he served as Assistant Secretary of the Treasury for Economic Policy. President Ronald Reagan and Treasury Secretary Donald Regan credited him with a major role in the Economic Recovery Tax Act of 1981, and he was awarded the Treasury Department's Meritorious Service Award for "outstanding contributions to the formulation of United States economic policy."
King World News Audio Interview
4% growth number in the GDP, released last week, is a hoax. Nothing that has happened in the economy that would cause such a strong turnaround. What the number reflects is unintended growth in inventory. What would support such a strong performance.
Discount stores are hurting. Dollar Tree buying Family Dollar. Low income (poor people) stores can't continue. Middle class stores have already been hurting. Stock Market perceived to be doing well because of prices/indexes. Corporations are single largest buying source for U.S. stocks 9buy backs). 2006-2013 corporations authorized 44.1 trillion worth of stock. Corporations are borrowing money from banks for these buybacks to drive up the stock price to obtain bonuses based on stock price.
Manufacturing coming back to the U.S. is a hoax. In the first 12 years of this century, the imports of offshored manufacturing has grown by 9%. The inflation adjusted net worth of the U.S. household in 2003 was $88,000. In 2013, it is $56,000... a 36% decline in wealth. If inflation were correctly measured, then we would see that there has been no recovery since 2008. Internationally, countries are ceasing to use the dollar for trade. All of this is putting downward pressure on the dollar. Will have devastating effects on trade.
If the Fed's money had gotten into the economy, then we would have see hyperinflation. Banks are too broke to lend. Consumers are too broke to borrow. QE purpose only supported the banks balance sheets. No corrective action has been taken. Fed buying derivatives has risen their price to support the banks' balance sheets. Eventually something will break and this will lead to a crisis. The currect situation isn't tenable.
Dollar is a cooked currency. Imports will become more expensive. Consumers will be pushed further to the wall. This will lead to massive social instability. People will starve. Banks control the Fed, the Treasury, and regulatory agencies. The Financial system has protected the banks by creating a bigger crisis for the future. We have never seen this before.
War on Gold continues. Price is fixed in the futures market. Manipulating price. Daily attacks with naked shorts. Asians are gobbling up physical. What happens when fiat currencies crash? You won't be able to purchase.
Things continue to worsen. GDP falls in the first quarter, but Stock prices rise. Bonds are at negative real interest rates. Dr. Roberts is surprised how long this has gone on. None of this makes sense. Would never have happened at any point in time in past history. Derivatives can't be covered -- several multiples above world GDP. What you see is insanity. No accountability. Have not corrected issues of deregulation that caused the crisis. Complete and total failure of the U.S. government. What will happen? He doesn't know, but we are going to find out.
David Stockman: The Collapse of the American Imperium - A perfect storm of policy failures - Adam Taggart - August 3, 2014 - David Stockman, former director of the OMB under President Reagan, former US Representative, best-selling author of The Great Deformation, and veteran financier is an insider's insider. Few people understand the ways in which Washington DC, The Fed, and Wall Street work and intersect better than he does. He's extremely concerned by the "perfect storm" he sees of concurrent failures in US policy across foreign, monetary, economic, and fiscal fronts:
If you look at the entire radar screen of things developing both domestically and internationally, we are plunging deep into a perfect storm of policy failure. The American Impirium is collapsing. There is blowback everywhere. The wreckage of prior policy mistakes of our intervention with foreign policy is coming home to roost, and the Ukraine is one area at ground zero for that. But second, monetary central planning is now coming to a dead-end. It is inflating the third financial bubble of the century and the Fed is now clueless as to how it will manage to unwind the massive balance sheet expansion it has been undertaken. And third, the fiscal doomsday machine continues to crank on. Washington is ignoring the fact that we are six years into a business cycle expansion and we are still running massive deficits and there is no cushion for the next upset that comes to the economy. Now, why is all of this important? Because I think the foreign policy failures -- the collapse of the American Impirium as I call it -- is at the center of this, and it will push all of these things in the wrong direction. We are now becoming much more aggressive in our foreign policy than ever before. We can't afford it by any means. And the potential for this to create black swans to roil or dislocate these very fragile markets that have been created by this massive central bank balance sheet expansion -- it all makes what is happening in the Ukraine, or in the Middle East in Gaza, or in the collapse of Iraq, even more dangerous in terms of what it could trigger. So we are in a real pickle here and I think it is compounding by the day...
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