I attended this past Saturday's meeting that only had about 13 attendees. The meeting conflicted with a lot of other happenings around the area. The League of Women's Voters had another meeting going on, there we graduations, and others were on vacation. The hope is that the next meeting in July will have more attendees and by all accounts I believe that it will.
A lot of what was spoken about was about the separation between our local government/governance and the average folks in Hickory. I will get into more of the specifics in a more detailed report over the next few days.
What has me anxious is to see what is going on and how it related to the dysfunction of Government at all levels. These are frightening times in many respects, because we see trouble on social and economic levels. And this effects the people of the lower socio-economic strata more than anyone, because those at the upper levels of the pyramid push their problems down the line. We are living in a Ponzi Scheme Economy. I think most people realize that, but they are satisfied to live this moment in denial under a belief that if they ignore the problems we face that they will just go away.
Our local government and political philosophy operates under a notion that if we save all of our dollars during these rainy days that eventually when the sun shines we are going to float to the top of the heap. The question begs to be asked, "When has this ever happened during the history of civilization?"
When a collapse happens, the whole system goes down. There will be no prisoners taken -- so to say. When the United States Federal Reserve Note System Collapses, we are still going to have to deal with the aftermath of that destruction just like all of the other communities in our country. Fiat Monetary Systems always collapse. It isn't a matter of if. It is a matter of when.
The understanding we must have is that our Social System will only survive the collapse of our currency if we realize that people matter more than money. As I have pointed to you many times on this blog, when the currency collapses there will still be ways to create a marketplace through bartering or alternative currencies. The problems we will see will be because of the transition from what the accepted currency currently is to what it shall be after the collapse of the Federal Reserve Note System.
One of the issues that we discussed the other day was the way that groups of people are constantly pitted against one another. It is the all too well known method called Divide and Conquer. This shouldn't be about color, gender, religious preference, or whatever. This hurts the people at the Lower Economic Strata most of all, because they are the most vulnerable to instability of the economy and the society in general. They have no gated community to hide behind when it hits the fan. They can't afford extra security when there is a riot.
In the times we are living in, we cannot afford to allow ourselves to be divided. Unfortunately, during a Disaster or Collapse that is when riots and chaos will occur, because of the way that groups are pitted against one another. Most of this is created by ignorance and lack of understanding, empathy, and compassion for others who don't fit what someone considers their norm. We can't afford to associate with Modern Professional Wrestling Politics. We can't afford to buy into talking points, obfuscation, and soundbytes.
We need to get on to the road to recovery. We need to start working together to build something, instead of constantly creating obstacles and being destructive. I think that was the mood of the discussion from last Saturday's meeting. I hope people of all backgrounds will join us on this mission to bring Government back to the people of the area. That idea has no party affiliation, color, or creed. That idea is about fairness, justice, and being a good human being.
Peace
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Wednesday, June 15, 2011
Sunday, June 12, 2011
Economic Stories of Relevance in Today's World -- June 12, 2011
Questions surround feds' raid of Stockton home - KXTV Sacramento - June 8, 2011 - A federal education official Wednesday morning offered little information as to why federal agents raided a Stockton man's home Tuesday... U.S. Department of Education spokesman Justin Hamilton confirmed for News10 Wednesday morning federal agents with the Office of the Inspector General (OIG), not local S.W.A.T., served the search warrant. Hamilton would not say specifically why the raid took place except that it was part of an ongoing criminal investigation... (Hound - This is a story about unreasonable search and seizure over a student loan).
Bill Gross: Treasury investors will 'get cooked' - CNN Money - By Hibah Yousuf - June 8, 2011 - Investors who have been betting on Treasuries are destined "to get cooked like frogs in an increasingly hot pot of water," the well-known bond bear told attendees at a Morningstar Investment conference in Chicago... Gross, who manages the $235 billion Pimco Total Return Fund (PTTAX), said real interest rates, which remove the effect of inflation to measure the actual yield an investor receives, have fallen into negative territory... He pointed out that Treasury inflation-protected securities with a maturity of 5 years are trading at a yield of -0.5%. In October 2008, the 5-year TIPS' real interest rate stood at 4%... Given the "staggering" drop in yields and the fact that, on a historical basis, they are low, Gross said interest rates can't sink much further "absent a potential crisis in the dollar."
The Situation Room: Corporations paying no federal income tax - CNN - Jack Cafferty - April 21, 2010 - GE and Bank of America pay no taxes... (Video)
The Federal Reserve Cartel: Freemasons and The House of Rothschild - Global Research - by Dean Henderson - (Part 2 of 4) - In 1789 Alexander Hamilton became the first Treasury Secretary of the United States. Hamilton was one of many Founding Fathers who were Freemasons. He had close relations with the Rothschild family which owns the Bank of England and leads the European Freemason movement. George Washington, Benjamin Franklin, John Jay, Ethan Allen, Samuel Adams, Patrick Henry, John Brown and Roger Sherman were all Masons... Roger Livingston helped Sherman and Franklin write the Declaration of Independence. He gave George Washington his oaths of office while he was Grand Master of the New York Grand Lodge of Freemasons. Washington himself was Grand Master of the Virginia Lodge. Of the General Officers in the Revolutionary Army, thirty-three were Masons. This was highly symbolic since 33rd Degree Masons become Illuminated. [1]... Populist founding fathers led by John Adams, Thomas Jefferson, James Madison and Thomas Paine- none of whom were Masons- wanted to completely severe ties with the British Crown, but were overruled by the Masonic faction led by Washington, Hamilton and Grand Master of the St. Andrews Lodge in Boston General Joseph Warren, who wanted to “defy Parliament but remain loyal to the Crown”. St. Andrews Lodge was the hub of New World Masonry and began issuing Knights Templar Degrees in 1769. [2]
Ron Paul tells Manchester crowd inflation will hit 50 percent - New Hampshire Union Leader - Mark Hayward - June 11, 2011 - Texas congressman Ron Paul on Friday predicted that inflation will hit 50 percent in the next couple of years, thanks to the massive debt the country has accumulated... Social Security checks will still be cut and interest payments will still be made, but the inflated dollars will allow the government to repay borrowed dollars with devalued money, Paul said.
Many of us won’t be able to retire until our 80s - Marketwatch - By Robert Powell - June 9, 2011 - What’s more, it’s even worse for low-income workers, according Jack VanDerhei, one of the co-authors of the study. Those who earned (on average over the course of their careers) less than $11,700 per year, the lowest income quartile, would need to defer retirement till age 84 before 90% of those households would have just a 50% chance of affording retirement... Those who earned between $11,700 and $31,200 will need to work till age 76 to have a 50% chance of covering basic expenses in retirement. Those who earned between $31,200 and $72,500 will need to work to age 72 to have a 50% chance and those who earned more than $72,500, those in the highest income quartile, catch a break; they get stop working at age 65 to have a 50/50 chance of funding their retirement.
China ratings house says US defaulting: report - AFP - June 10, 2011 - A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order... "In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying... Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.
US Is Nearing Even Worse Financial Crisis: Jim Rogers - CNBC - Margo D. Beller - June 8, 2011 - The U.S. is approaching a financial crisis worse than 2008, Jim Rogers, chief executive, Rogers Holdings, warned CNBC Wednesday... "The debts that are in this country are skyrocketing," he said. "In the last three years the government has spent staggering amounts of money and the Federal Reserve is taking on staggering amounts of debt... "When the problems arise next time…what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around."... The well-known investor believes the government won't shut down in August if agreement isn't reached on raising the debt ceiling, but he did say "draconian cuts" are needed in taxes and spending, especially military spending.
GM's Akerson pushing for higher gas taxes - The Detroit News - David Shepardson and Christina Rogers - June 7, 2011 - General Motors Co. CEO Dan Akerson wants the federal gas tax boosted as much as $1 a gallon to nudge consumers toward more fuel-efficient cars, and he's confident the government will soon shed its remaining 26 percent stake in the once-bankrupt automaker.... For the years 2017-25, federal officials are considering 3 percent to 6 percent annual fuel efficiency increases, or 47 mpg to 62 mpg. That could boost the cost of vehicles by up to $3,500... "You know what I'd rather have them do — this will make my Republican friends puke — as gas is going to go down here now, we ought to just slap a 50-cent or a dollar tax on a gallon of gas," Akerson said... "People will start buying more Cruzes and they will start buying less Suburbans."
Bill Gross: Treasury investors will 'get cooked' - CNN Money - By Hibah Yousuf - June 8, 2011 - Investors who have been betting on Treasuries are destined "to get cooked like frogs in an increasingly hot pot of water," the well-known bond bear told attendees at a Morningstar Investment conference in Chicago... Gross, who manages the $235 billion Pimco Total Return Fund (PTTAX), said real interest rates, which remove the effect of inflation to measure the actual yield an investor receives, have fallen into negative territory... He pointed out that Treasury inflation-protected securities with a maturity of 5 years are trading at a yield of -0.5%. In October 2008, the 5-year TIPS' real interest rate stood at 4%... Given the "staggering" drop in yields and the fact that, on a historical basis, they are low, Gross said interest rates can't sink much further "absent a potential crisis in the dollar."
The Situation Room: Corporations paying no federal income tax - CNN - Jack Cafferty - April 21, 2010 - GE and Bank of America pay no taxes... (Video)
The Federal Reserve Cartel: Freemasons and The House of Rothschild - Global Research - by Dean Henderson - (Part 2 of 4) - In 1789 Alexander Hamilton became the first Treasury Secretary of the United States. Hamilton was one of many Founding Fathers who were Freemasons. He had close relations with the Rothschild family which owns the Bank of England and leads the European Freemason movement. George Washington, Benjamin Franklin, John Jay, Ethan Allen, Samuel Adams, Patrick Henry, John Brown and Roger Sherman were all Masons... Roger Livingston helped Sherman and Franklin write the Declaration of Independence. He gave George Washington his oaths of office while he was Grand Master of the New York Grand Lodge of Freemasons. Washington himself was Grand Master of the Virginia Lodge. Of the General Officers in the Revolutionary Army, thirty-three were Masons. This was highly symbolic since 33rd Degree Masons become Illuminated. [1]... Populist founding fathers led by John Adams, Thomas Jefferson, James Madison and Thomas Paine- none of whom were Masons- wanted to completely severe ties with the British Crown, but were overruled by the Masonic faction led by Washington, Hamilton and Grand Master of the St. Andrews Lodge in Boston General Joseph Warren, who wanted to “defy Parliament but remain loyal to the Crown”. St. Andrews Lodge was the hub of New World Masonry and began issuing Knights Templar Degrees in 1769. [2]
Ron Paul tells Manchester crowd inflation will hit 50 percent - New Hampshire Union Leader - Mark Hayward - June 11, 2011 - Texas congressman Ron Paul on Friday predicted that inflation will hit 50 percent in the next couple of years, thanks to the massive debt the country has accumulated... Social Security checks will still be cut and interest payments will still be made, but the inflated dollars will allow the government to repay borrowed dollars with devalued money, Paul said.
Many of us won’t be able to retire until our 80s - Marketwatch - By Robert Powell - June 9, 2011 - What’s more, it’s even worse for low-income workers, according Jack VanDerhei, one of the co-authors of the study. Those who earned (on average over the course of their careers) less than $11,700 per year, the lowest income quartile, would need to defer retirement till age 84 before 90% of those households would have just a 50% chance of affording retirement... Those who earned between $11,700 and $31,200 will need to work till age 76 to have a 50% chance of covering basic expenses in retirement. Those who earned between $31,200 and $72,500 will need to work to age 72 to have a 50% chance and those who earned more than $72,500, those in the highest income quartile, catch a break; they get stop working at age 65 to have a 50/50 chance of funding their retirement.
China ratings house says US defaulting: report - AFP - June 10, 2011 - A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order... "In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying... Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.
US Is Nearing Even Worse Financial Crisis: Jim Rogers - CNBC - Margo D. Beller - June 8, 2011 - The U.S. is approaching a financial crisis worse than 2008, Jim Rogers, chief executive, Rogers Holdings, warned CNBC Wednesday... "The debts that are in this country are skyrocketing," he said. "In the last three years the government has spent staggering amounts of money and the Federal Reserve is taking on staggering amounts of debt... "When the problems arise next time…what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around."... The well-known investor believes the government won't shut down in August if agreement isn't reached on raising the debt ceiling, but he did say "draconian cuts" are needed in taxes and spending, especially military spending.
GM's Akerson pushing for higher gas taxes - The Detroit News - David Shepardson and Christina Rogers - June 7, 2011 - General Motors Co. CEO Dan Akerson wants the federal gas tax boosted as much as $1 a gallon to nudge consumers toward more fuel-efficient cars, and he's confident the government will soon shed its remaining 26 percent stake in the once-bankrupt automaker.... For the years 2017-25, federal officials are considering 3 percent to 6 percent annual fuel efficiency increases, or 47 mpg to 62 mpg. That could boost the cost of vehicles by up to $3,500... "You know what I'd rather have them do — this will make my Republican friends puke — as gas is going to go down here now, we ought to just slap a 50-cent or a dollar tax on a gallon of gas," Akerson said... "People will start buying more Cruzes and they will start buying less Suburbans."
Peter Schiff interviewed by Max Keiser
Saturday, June 11, 2011
Newsletter about the City Council meeting of June 7, 2011
This newsletter is about the Hickory City Council meeting that I attended this past week. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.
At right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.
You will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.
Here is a summary of the agenda of the 6/7/2011 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below:
Please remember that pressing Ctrl and + will magnify the text and page and pressing Ctrl and - will make the text and page smaller. This will help the readability for those with smaller screens and/or eye difficulties.
Invocation by Rev. Bill Garrard, Retired from United Methodist Church
Special Presentations:
A. Presentation of Proclamation Proclaiming Wednesday, June 8, 2011 as J. T. Poston Day in the City of Hickory - Whereas, JT Poston won the 2011 3A State individual Golf Championship with a single day scoring record of 63 on the first day; and whereas, JT followed up with a second day score of 68 to win by 9 strokes.; whereas JT set the all-time scoring record for High School play with a score of 131 and his new record breaks the old record set back in 1937. JT was conference player of the year for 3 straight years and helped to lead the Hickory High team to 5th,, 1st, 3rd, and 2nd place finishes in the State. He won two consecutive State Championships and JT is going to represent Hickory well by going to Western Carolina where he will play golf. Yesterday in the Hickory High School shootout, he shot 32 on 9-holes on the Jackson course. Therefore on behalf of Hickory City Council, I do hereby commend JT Poston for his competiveness and sportsmanship and hereby proclaim Wednesday, June 8, 2011 as JT Poston day in the City of Hickory.
JT thanked everyone and the Hickory High School Coach talked about JT’s hard work and discipline and talked about Hickory High’s Senior class and the tremendous character. Mayor Wright mentioned that the 32 was 1-stroke behind the all-time record set in 2001.
B. Presentation of the Distinguished Budget Presentation Award for the Fiscal Year Beginning July 1, 2010. This is the Sixteenth Consecutive Year the City Has Received this Recognition. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort.
Consent Agenda:
A. Resolution – Cancellation of July 5, 2011 City Council Meeting - Be it resolved by the City Council of the City of Hickory that the regularly scheduled City Council Meeting for July 5, 2011 be cancelled due to the annual tradition of canceling the first City Council Meeting in July because of the possibility of not having a quorum of Council as a result of the July 4th holiday and vacations. (This meeting in July has
traditionally been cancelled by the City Council.)
B. Write-Offs for Fiscal Year 2010-2011 in the Amount of $198,299.15 - In accordance with the NC General Statutes and the City of Hickory’s financial policies, a list of accounts to be written off follows and is submitted for Council approval in conjunction with the annual audit for FY 2010-11 as required by law. Fiscal Year 2011 rite-offs total $187,214.23; whereas, FY 2009-10 write-offs totaled $164,346.90. Accounts over $50 that are eligible have been submitted to the North Carolina Debt Setoff Program, which means we are continuing to pursue collection. Collections from the NC Debt Setoff Program for Calendar Year 2011 have exceeded $17,000 so far.
C. Work Authorization No. 09-05 – Talbert & Bright, Inc. – One Obstruction Survey for Runway 6/24 End Threshold Surfaces at Hickory Regional Airport As Required by NC Division of Aviation in the Total Lump Sum Amount of $16,857 - This work authorization includes performance of an obstruction survey, as required by the NC Division of Aviation, in order to identify any trees and other objects that penetrate threshold approach surfaces to the Runway 06/24 ends. The Federal Aviation Administration’s share of the costs is $15,171 (90%), and the City has a local matching obligation of $1,686 (10%), for a total of $16,857. A budget amendment is not required.
D. Request by Hickory Police Department for Approval to Apply for a Grant from the US Department of Justice to Assist in Funding the Purchase of 39 Bulletproof Vests - Hickory Police Department requests permission to apply for a grant from the US Dept. of Justice to assist in funding the purchase of bulletproof vests for police officers. If awarded the grant, the City will receive up to 50% of the cost (39 vests @ $700 each). Hickory Police Department is committed to improving officer safety and has a “mandatory wear policy” in effect, with monies being budgeted annually to purchase vests. HPD will
be notified after July 1st if awarded the grant.
E. Proclamation Declaring May 23 – 29, 2011 as “American Legion Auxiliary Poppy Week” in the City of Hickory
F. Request to Approve Appearance Grant to Dr. Steven Smith – Non-Residential Property Located at 256 3rd Avenue NW in the Amount of $5,000 - Dr. Steven Smith owns non-residential property located at 256 3rd Avenue NW. Dr. Smith plans to improve the appearance of the property by installing new awnings, painting and glazing of windows and the installation of new landscaping. The amount of the improvements is estimated to be between $12,000 and $18,000. Since both bids exceed $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
G. Request to Approve Appearance Grant to Paige Johnson – Non-Residential Property Located at 817 8th Avenue NE in the Amount of $5,000 - Paige Johnson owns non-residential property located at 817 8th Avenue NE. Ms. Johnson plans to improve the appearance of the property with new stucco work, creating a new parapet, installing new windows and lighting fixtures. The amount of the improvements is estimated to be between $9,600 and $11,245. Since one of the two bids exceeds $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
H. Request to Approve Landscape Grant to Gavin Mitchell – Non-Residential Property Located at 15 2nd Avenue NW in the Amount of $2,500 - Gavin Mitchell owns non-residential property located at 15 2nd Avenue NW. Mr. Mitchell plans to improve the appearance of the property by removing old unmaintained
landscaping and to replace it with new landscaping. The amount of the improvements is estimated to be between $4,879 and $5,288. Since one of the two bids exceeds $5,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $2,500 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $2,500.
I. Request Denial of Appearance Grant to Michael and Nora Perkett for Residential Property Located at 813 Main Avenue, SW in the Amount of $5,000 - On April 25, 2011 the Community Appearance Commission unanimously voted to recommend funding in the amount of $5,000 for a residence in a non residential zoning that is proposed to be converted by owners Michael and Nora Perkett into a bed
and breakfast. They had proposed to use the grant funds to paint the existing structure and to install decorative security fencing for an estimated cost of $11,300. The City Manager’s Office does not recommend approval by City Council. The residential structure sits between two (2) warehouse/industry uses, making it an unlikely place for a successful bed and breakfast, therefore having the potential of not becoming a B&B and giving funds to a private residence. While the CAC is clear in its intention to encourage improvement of properties through the appearance and landscaping grants, for what purpose and intent those funds are allocated should be closely monitored by City Council. If the subject property is verifiably converted to a bed and breakfast at some time in the future, the owners can reapply for an appearance grant as a viable commercial property as apposed to a residence that hopes to become a commercial property. (Pulled from the Agenda and tabled)
J. Budget Ordinance
1. To budget a $189 donation from the Catawba County Young Republicans in the Library Departmental Supplies line item. This donation is for the purchase of summer reading supplies.
2. To budget a $750 International Council donation in the International Council line item. This donation is for the 2011 International Springfest event.
3. To budget a total of $1,200 International Council donations in the International Council line item. Donations will be used to conduct the 2011 International Springfest event.
4. To appropriate $27,658 of Capital Reserve Fund Balance and transfer funds to the Fire Department's Non-Asset Inventory line item. This amendment is necessary to help pay for the purchase of scheduled replacement computer equipment for the Fire Department.
5. To appropriate $16,900 of General Capital Reserve Fund and transfer to the Solid Waste - Specialized Equipment Capital line item. This amendment is necessary to pay the contractor to paint the finish coat on the Transfer Station’s new compactors and all metal structure associated with the compactors. This is part of the Solid Waste Transfer Station project and should have been included in the original project.
6. To accept and budget an $8,175 materials reimbursement check from Mr. Anderson and budget in the Water and Sewer Pipes; Hydrants; Meters line item. Mr. Anderson contacted the Public Utilities Division about extending the water services down Wildlife Club Rd. in Alexander County and said that he would pay for the materials. Therefore; this reimbursement check is for the cost of materials that were needed for the extension.
7. To transfer $208,669 from Capital Reserve Fund Balance Appropriated to the Water and Sewer Fund Capital Water Lines account. This transfer is necessary to pay NCDOT (North Carolina Department of Transportation) for a Utility Agreement for the relocation and adjustment of certain municipal owned water lines along project U-2307AE in Catawba County, Eastside Thoroughfare from north of SR 1692 to north
of 1453 at the end of Springs Rd. This item was budgeted in FY07-08 but is just now being billed by the State. Funds for this agreement reside in Capital Reserve Fund Balance and therefore a budget amendment is necessary.
New Business - Public Hearings:
1. Fiscal Year 2011-2012 Budget Ordinance - Pursuant to NC General Statutes §159-12(b), a public hearing shall be held before adopting the budget ordinance. This public hearing was advertised in a
newspaper having general circulation in the Hickory area on May 27, 2011. Copies of the budget ordinance were filed for public inspection in the Office of the City Clerk, Patrick Beaver Memorial Library and Ridgeview Library. The recommended budget is also posted on the City’s web page, www.hickorygov.com. Pursuant to NC General Statutes §159-13(a), the City Council is required to adopt a balanced budget before July 1, making the appropriations and levying taxes for the budget year. The City Manager recommends adoption of the attached budget ordinance for Fiscal Year 2011-12.
Manager Berry wanted to show where the City has been over the past 5 years. We have gone through the Great Recession, which has been the most difficult economic times of our generation. This has played out directly in our budget. We have seen less than 1% growth in the past 5 years. In fiscal 08-09 we saw a deficit that is attributable to capital projects that were administered during that year.
This had a direct impact on the fund balance, but over the 5 years. It has remained intact. Money has been set aside for the Northeast Wastewater Treatment Project. Versus other cities, we do not see the City of Hickory looking towards bankruptcy. Two primary issues that are driving communities towards bankruptcy are their Debt payments are consuming Revenues and their other is their Unfunded post employment liabilities (Retirement and Retiree Insurance). There are 644 employees within the City of Hickory.
Five years ago, the City of Hickory was $7.6 million in debt and is presently $2.6 million in debt. In seven years, the City would be out of General Fund debt. There is a Caveat with the Convention Center, but it is Self-Supporting through the Hotel/Motel Occupancy tax. There has been a significant reduction of debt as a percentage of revenues.
The City is going to earn more debt than we pay. Manager Berry spoke of the credit issues that face the federal government. The City has gone up from AA- to AA. The Mayor added that this has come at a time when the debt rating agencies have tightened up.
The City is part of the Local Government Employee Retirement System. This is a jointly funded system. The employee contributes 6% and the City provides 4.89%. The City is not facing the liability. The Money is in the bank when the employees retire. The Mayor added that this does not mean that the money is not there to pay for every benefit. It means that with a normal range of earnings and COLAs that the retirees and the fund will be in decent shape for the future.
Manager Berry stated that the City has a very conservative healthcare program. There are 66 former employees who are still on healthcare insurance. The total expense for everyone is $291,000. Within the scope of the budget this is a relatively minor expense. The City pays 25% of the premium for those who retire with between 20 and 29 years with the City. The City pays 100% for people who have been with the City for 30 years +. This has been capped when these people obtain medicare. This benefit has recently been eliminated for newly hired employees.
Even with the addition 26 Public safety Employees including a Ladder Company in the Fire Department and Police Officers, the City is still down 40 employees (and 34 positions have been frozen). This has had an impact on other departments. Most of the other departments have seen a 10% reduction in their staffing. He does not say that in a proud way, because it has put some stress on the workers and as things improve they will be coming back to add some things back.
What impact has this had on services? The Institute of Government in Chapel Hill has rated the City of Hickory as a comparison to 14 cities of similar size in ten services that are provided. The City of Hickory ranked below the average cost in 90% of the services that were provided in 2010. For 5 consecutive years they are below the average cost in 80%. He then showed the phone survey from 2008 (by the Jackson Group) was very well received.
Manager Berry states that in the last five years with only a 1% increase in the budget we have done a lot. People might say there has been a bunker mentality, but there have been capital projects, the police radio project, Cripple Creek Fall outline… We have moved the city forward.
Manager Berry next mentioned the 2,300 jobs at 9 different businesses that created $109 million in tax bases. He stated that seeds have been sown, saplings are growing, but we need more rain. We need a better economy.
In 2011-12 he expects to see more of the same. He thinks we have seen the worst of it. He mentions the increase in Sales tax Revenues. The budget will not increase any taxes or fees. The overall budget is down 2% to $83.4 million. Operating funds are flat. The general Fund will see a slight decrease. There has been a slight decrease in county property values. Revenue Neutral Tax Rates should have been 51-cents, but they held the line at 50-cents. There is a plan to give merit-based raises in this fiscal year, but a couple more things need to happen first.
The City did not get selected for the recent round of Brownfield Grants. He mentions how we will have to deal with vacant buildings as a top priority. He wants to focus on technology. We are serious partners with other local communities to create a Multi-Jurisdictional Technology and Business Park.
The Mayor stated that a lot of time has been spent since February on this budget. The mayor is proud that they are going to be able to hold the line on taxes. In 2001, we were 2nd in the State in tax burden, which is property tax plus sales tax. Today we are 15th, which is right in the middle. He states that we have tried to keep from being an unfair burden to tax payers. Alderman Meisner stated that this has been done without citizens receiving any noticeable reduction in services. Alderman Lail stated that this is the first year in a while that City fees have not been increased and this has been done with the understanding of how difficult things are for citizens at this point in time.
The Hound constantly talks about the issue of Austerity. There are people who actually think that austerity is good, but austerity impedes growth. You have to invest in the future in order to have one. What we have seen is that most of the investment within this community has come from outside governmental sources. That isn't all bad, because the City has used monies, such as stimulus, to be able to leverage capital and maximize investment in certain infrastructure to move forward. It is easy to see that the city does think through investments and attempts to always get the most bang for the buck.
What one needs to realize is that, in terms of real dollars, the overall budget has fallen drastically over the five years. When looking at the Consumer Price Index, one sees that the revenues in real terms have actually fallen dramatically. In today's dollars the actual 2006-07 revenues ($42.9 million) would be $47.9 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lost nearly 12% of its revenues during this timespan.
In terms of expenditures the actual 2006-07 expenditures ($39.9 million) would be $44.5 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lowered its expenditures by nearly 4% of in this timespan. So in real terms the City has (negatively) increased its spread of General Fund revenues over expenditures by 8%.
To get a big picture analysis of Economics, you have to look at the element of inflation in the system. In 2006-07, the proposed budget was $76 million. In today's dollars that would be $84.8 million. We see that the proposed 2011-12 budget is $83.4. That is a 1.7% reduction compared to the budget of five years ago, which 1.7% is not a drastic shift. What we see through all of this is that the budget is definitely being kept in line, which is excellent. The problem is that if Revenues stay on this path, a 12% reduction in real terms, then even more drastic cuts in services offered are definitely going to have to be made.
In looking at ways to begin growing City Revenues, one must realize that property values are going to remain stagnant at best. The only way to raise revenues will be to bring money generated from Sales back up. The only way to do that is to get people spending and the only way to do that is to increase the city's Employment capacity. It is obvious, that is what is going to have to be worked on to get back on a path to progress. We have to get good paying jobs back in our local economy or we can't raise that sales tax and that is the only thing that can improve budgets 5 years plus down the line. This is not cup half full or empty. This is reality.
2. Continuation of Public Hearing of May 17, 2011 – Proposed Ward Boundary Map Based on the 2010 Federal Census Results and Approval of Resolution At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population
based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was
further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input
at the public hearing and consider adoption of the requisite resolution. At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
New Business - Departmental Reports:
1. Consideration of Offer to Purchase and Contract for Property Owned by Joe Robert LaFone, Sr. Heirs Located at 230 3rd Street, SW in the Amount of $16,000 - Staff requests consideration to purchase a .46 acre vacant lot owned by Joe Robert LaFone, Sr. Heirs located at 230 3rd Street, SW. The property is adjacent to 6.59 acres owned by the City of Hickory and could potentially be used for expansion of the Hickory Police Department. The offer is based on an asking price of $16,000 and a tax value of $10,000. Chief Tom Adkins made the presentation and went over the above information. The Council unanimously consented.
At right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.
You will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.
Here is a summary of the agenda of the 6/7/2011 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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Invocation by Rev. Bill Garrard, Retired from United Methodist Church
Special Presentations:
A. Presentation of Proclamation Proclaiming Wednesday, June 8, 2011 as J. T. Poston Day in the City of Hickory - Whereas, JT Poston won the 2011 3A State individual Golf Championship with a single day scoring record of 63 on the first day; and whereas, JT followed up with a second day score of 68 to win by 9 strokes.; whereas JT set the all-time scoring record for High School play with a score of 131 and his new record breaks the old record set back in 1937. JT was conference player of the year for 3 straight years and helped to lead the Hickory High team to 5th,, 1st, 3rd, and 2nd place finishes in the State. He won two consecutive State Championships and JT is going to represent Hickory well by going to Western Carolina where he will play golf. Yesterday in the Hickory High School shootout, he shot 32 on 9-holes on the Jackson course. Therefore on behalf of Hickory City Council, I do hereby commend JT Poston for his competiveness and sportsmanship and hereby proclaim Wednesday, June 8, 2011 as JT Poston day in the City of Hickory.
JT thanked everyone and the Hickory High School Coach talked about JT’s hard work and discipline and talked about Hickory High’s Senior class and the tremendous character. Mayor Wright mentioned that the 32 was 1-stroke behind the all-time record set in 2001.
B. Presentation of the Distinguished Budget Presentation Award for the Fiscal Year Beginning July 1, 2010. This is the Sixteenth Consecutive Year the City Has Received this Recognition. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort.
Consent Agenda:
A. Resolution – Cancellation of July 5, 2011 City Council Meeting - Be it resolved by the City Council of the City of Hickory that the regularly scheduled City Council Meeting for July 5, 2011 be cancelled due to the annual tradition of canceling the first City Council Meeting in July because of the possibility of not having a quorum of Council as a result of the July 4th holiday and vacations. (This meeting in July has
traditionally been cancelled by the City Council.)
B. Write-Offs for Fiscal Year 2010-2011 in the Amount of $198,299.15 - In accordance with the NC General Statutes and the City of Hickory’s financial policies, a list of accounts to be written off follows and is submitted for Council approval in conjunction with the annual audit for FY 2010-11 as required by law. Fiscal Year 2011 rite-offs total $187,214.23; whereas, FY 2009-10 write-offs totaled $164,346.90. Accounts over $50 that are eligible have been submitted to the North Carolina Debt Setoff Program, which means we are continuing to pursue collection. Collections from the NC Debt Setoff Program for Calendar Year 2011 have exceeded $17,000 so far.
C. Work Authorization No. 09-05 – Talbert & Bright, Inc. – One Obstruction Survey for Runway 6/24 End Threshold Surfaces at Hickory Regional Airport As Required by NC Division of Aviation in the Total Lump Sum Amount of $16,857 - This work authorization includes performance of an obstruction survey, as required by the NC Division of Aviation, in order to identify any trees and other objects that penetrate threshold approach surfaces to the Runway 06/24 ends. The Federal Aviation Administration’s share of the costs is $15,171 (90%), and the City has a local matching obligation of $1,686 (10%), for a total of $16,857. A budget amendment is not required.
D. Request by Hickory Police Department for Approval to Apply for a Grant from the US Department of Justice to Assist in Funding the Purchase of 39 Bulletproof Vests - Hickory Police Department requests permission to apply for a grant from the US Dept. of Justice to assist in funding the purchase of bulletproof vests for police officers. If awarded the grant, the City will receive up to 50% of the cost (39 vests @ $700 each). Hickory Police Department is committed to improving officer safety and has a “mandatory wear policy” in effect, with monies being budgeted annually to purchase vests. HPD will
be notified after July 1st if awarded the grant.
E. Proclamation Declaring May 23 – 29, 2011 as “American Legion Auxiliary Poppy Week” in the City of Hickory
F. Request to Approve Appearance Grant to Dr. Steven Smith – Non-Residential Property Located at 256 3rd Avenue NW in the Amount of $5,000 - Dr. Steven Smith owns non-residential property located at 256 3rd Avenue NW. Dr. Smith plans to improve the appearance of the property by installing new awnings, painting and glazing of windows and the installation of new landscaping. The amount of the improvements is estimated to be between $12,000 and $18,000. Since both bids exceed $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
G. Request to Approve Appearance Grant to Paige Johnson – Non-Residential Property Located at 817 8th Avenue NE in the Amount of $5,000 - Paige Johnson owns non-residential property located at 817 8th Avenue NE. Ms. Johnson plans to improve the appearance of the property with new stucco work, creating a new parapet, installing new windows and lighting fixtures. The amount of the improvements is estimated to be between $9,600 and $11,245. Since one of the two bids exceeds $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
H. Request to Approve Landscape Grant to Gavin Mitchell – Non-Residential Property Located at 15 2nd Avenue NW in the Amount of $2,500 - Gavin Mitchell owns non-residential property located at 15 2nd Avenue NW. Mr. Mitchell plans to improve the appearance of the property by removing old unmaintained
landscaping and to replace it with new landscaping. The amount of the improvements is estimated to be between $4,879 and $5,288. Since one of the two bids exceeds $5,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $2,500 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $2,500.
I. Request Denial of Appearance Grant to Michael and Nora Perkett for Residential Property Located at 813 Main Avenue, SW in the Amount of $5,000 - On April 25, 2011 the Community Appearance Commission unanimously voted to recommend funding in the amount of $5,000 for a residence in a non residential zoning that is proposed to be converted by owners Michael and Nora Perkett into a bed
and breakfast. They had proposed to use the grant funds to paint the existing structure and to install decorative security fencing for an estimated cost of $11,300. The City Manager’s Office does not recommend approval by City Council. The residential structure sits between two (2) warehouse/industry uses, making it an unlikely place for a successful bed and breakfast, therefore having the potential of not becoming a B&B and giving funds to a private residence. While the CAC is clear in its intention to encourage improvement of properties through the appearance and landscaping grants, for what purpose and intent those funds are allocated should be closely monitored by City Council. If the subject property is verifiably converted to a bed and breakfast at some time in the future, the owners can reapply for an appearance grant as a viable commercial property as apposed to a residence that hopes to become a commercial property. (Pulled from the Agenda and tabled)
J. Budget Ordinance
1. To budget a $189 donation from the Catawba County Young Republicans in the Library Departmental Supplies line item. This donation is for the purchase of summer reading supplies.
2. To budget a $750 International Council donation in the International Council line item. This donation is for the 2011 International Springfest event.
3. To budget a total of $1,200 International Council donations in the International Council line item. Donations will be used to conduct the 2011 International Springfest event.
4. To appropriate $27,658 of Capital Reserve Fund Balance and transfer funds to the Fire Department's Non-Asset Inventory line item. This amendment is necessary to help pay for the purchase of scheduled replacement computer equipment for the Fire Department.
5. To appropriate $16,900 of General Capital Reserve Fund and transfer to the Solid Waste - Specialized Equipment Capital line item. This amendment is necessary to pay the contractor to paint the finish coat on the Transfer Station’s new compactors and all metal structure associated with the compactors. This is part of the Solid Waste Transfer Station project and should have been included in the original project.
6. To accept and budget an $8,175 materials reimbursement check from Mr. Anderson and budget in the Water and Sewer Pipes; Hydrants; Meters line item. Mr. Anderson contacted the Public Utilities Division about extending the water services down Wildlife Club Rd. in Alexander County and said that he would pay for the materials. Therefore; this reimbursement check is for the cost of materials that were needed for the extension.
7. To transfer $208,669 from Capital Reserve Fund Balance Appropriated to the Water and Sewer Fund Capital Water Lines account. This transfer is necessary to pay NCDOT (North Carolina Department of Transportation) for a Utility Agreement for the relocation and adjustment of certain municipal owned water lines along project U-2307AE in Catawba County, Eastside Thoroughfare from north of SR 1692 to north
of 1453 at the end of Springs Rd. This item was budgeted in FY07-08 but is just now being billed by the State. Funds for this agreement reside in Capital Reserve Fund Balance and therefore a budget amendment is necessary.
New Business - Public Hearings:
1. Fiscal Year 2011-2012 Budget Ordinance - Pursuant to NC General Statutes §159-12(b), a public hearing shall be held before adopting the budget ordinance. This public hearing was advertised in a
newspaper having general circulation in the Hickory area on May 27, 2011. Copies of the budget ordinance were filed for public inspection in the Office of the City Clerk, Patrick Beaver Memorial Library and Ridgeview Library. The recommended budget is also posted on the City’s web page, www.hickorygov.com. Pursuant to NC General Statutes §159-13(a), the City Council is required to adopt a balanced budget before July 1, making the appropriations and levying taxes for the budget year. The City Manager recommends adoption of the attached budget ordinance for Fiscal Year 2011-12.
Manager Berry wanted to show where the City has been over the past 5 years. We have gone through the Great Recession, which has been the most difficult economic times of our generation. This has played out directly in our budget. We have seen less than 1% growth in the past 5 years. In fiscal 08-09 we saw a deficit that is attributable to capital projects that were administered during that year.
This had a direct impact on the fund balance, but over the 5 years. It has remained intact. Money has been set aside for the Northeast Wastewater Treatment Project. Versus other cities, we do not see the City of Hickory looking towards bankruptcy. Two primary issues that are driving communities towards bankruptcy are their Debt payments are consuming Revenues and their other is their Unfunded post employment liabilities (Retirement and Retiree Insurance). There are 644 employees within the City of Hickory.
Five years ago, the City of Hickory was $7.6 million in debt and is presently $2.6 million in debt. In seven years, the City would be out of General Fund debt. There is a Caveat with the Convention Center, but it is Self-Supporting through the Hotel/Motel Occupancy tax. There has been a significant reduction of debt as a percentage of revenues.
The City is going to earn more debt than we pay. Manager Berry spoke of the credit issues that face the federal government. The City has gone up from AA- to AA. The Mayor added that this has come at a time when the debt rating agencies have tightened up.
The City is part of the Local Government Employee Retirement System. This is a jointly funded system. The employee contributes 6% and the City provides 4.89%. The City is not facing the liability. The Money is in the bank when the employees retire. The Mayor added that this does not mean that the money is not there to pay for every benefit. It means that with a normal range of earnings and COLAs that the retirees and the fund will be in decent shape for the future.
Manager Berry stated that the City has a very conservative healthcare program. There are 66 former employees who are still on healthcare insurance. The total expense for everyone is $291,000. Within the scope of the budget this is a relatively minor expense. The City pays 25% of the premium for those who retire with between 20 and 29 years with the City. The City pays 100% for people who have been with the City for 30 years +. This has been capped when these people obtain medicare. This benefit has recently been eliminated for newly hired employees.
Even with the addition 26 Public safety Employees including a Ladder Company in the Fire Department and Police Officers, the City is still down 40 employees (and 34 positions have been frozen). This has had an impact on other departments. Most of the other departments have seen a 10% reduction in their staffing. He does not say that in a proud way, because it has put some stress on the workers and as things improve they will be coming back to add some things back.
What impact has this had on services? The Institute of Government in Chapel Hill has rated the City of Hickory as a comparison to 14 cities of similar size in ten services that are provided. The City of Hickory ranked below the average cost in 90% of the services that were provided in 2010. For 5 consecutive years they are below the average cost in 80%. He then showed the phone survey from 2008 (by the Jackson Group) was very well received.
Manager Berry states that in the last five years with only a 1% increase in the budget we have done a lot. People might say there has been a bunker mentality, but there have been capital projects, the police radio project, Cripple Creek Fall outline… We have moved the city forward.
Manager Berry next mentioned the 2,300 jobs at 9 different businesses that created $109 million in tax bases. He stated that seeds have been sown, saplings are growing, but we need more rain. We need a better economy.
In 2011-12 he expects to see more of the same. He thinks we have seen the worst of it. He mentions the increase in Sales tax Revenues. The budget will not increase any taxes or fees. The overall budget is down 2% to $83.4 million. Operating funds are flat. The general Fund will see a slight decrease. There has been a slight decrease in county property values. Revenue Neutral Tax Rates should have been 51-cents, but they held the line at 50-cents. There is a plan to give merit-based raises in this fiscal year, but a couple more things need to happen first.
The City did not get selected for the recent round of Brownfield Grants. He mentions how we will have to deal with vacant buildings as a top priority. He wants to focus on technology. We are serious partners with other local communities to create a Multi-Jurisdictional Technology and Business Park.
The Mayor stated that a lot of time has been spent since February on this budget. The mayor is proud that they are going to be able to hold the line on taxes. In 2001, we were 2nd in the State in tax burden, which is property tax plus sales tax. Today we are 15th, which is right in the middle. He states that we have tried to keep from being an unfair burden to tax payers. Alderman Meisner stated that this has been done without citizens receiving any noticeable reduction in services. Alderman Lail stated that this is the first year in a while that City fees have not been increased and this has been done with the understanding of how difficult things are for citizens at this point in time.
The Hound constantly talks about the issue of Austerity. There are people who actually think that austerity is good, but austerity impedes growth. You have to invest in the future in order to have one. What we have seen is that most of the investment within this community has come from outside governmental sources. That isn't all bad, because the City has used monies, such as stimulus, to be able to leverage capital and maximize investment in certain infrastructure to move forward. It is easy to see that the city does think through investments and attempts to always get the most bang for the buck.
What one needs to realize is that, in terms of real dollars, the overall budget has fallen drastically over the five years. When looking at the Consumer Price Index, one sees that the revenues in real terms have actually fallen dramatically. In today's dollars the actual 2006-07 revenues ($42.9 million) would be $47.9 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lost nearly 12% of its revenues during this timespan.
In terms of expenditures the actual 2006-07 expenditures ($39.9 million) would be $44.5 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lowered its expenditures by nearly 4% of in this timespan. So in real terms the City has (negatively) increased its spread of General Fund revenues over expenditures by 8%.
To get a big picture analysis of Economics, you have to look at the element of inflation in the system. In 2006-07, the proposed budget was $76 million. In today's dollars that would be $84.8 million. We see that the proposed 2011-12 budget is $83.4. That is a 1.7% reduction compared to the budget of five years ago, which 1.7% is not a drastic shift. What we see through all of this is that the budget is definitely being kept in line, which is excellent. The problem is that if Revenues stay on this path, a 12% reduction in real terms, then even more drastic cuts in services offered are definitely going to have to be made.
In looking at ways to begin growing City Revenues, one must realize that property values are going to remain stagnant at best. The only way to raise revenues will be to bring money generated from Sales back up. The only way to do that is to get people spending and the only way to do that is to increase the city's Employment capacity. It is obvious, that is what is going to have to be worked on to get back on a path to progress. We have to get good paying jobs back in our local economy or we can't raise that sales tax and that is the only thing that can improve budgets 5 years plus down the line. This is not cup half full or empty. This is reality.
2. Continuation of Public Hearing of May 17, 2011 – Proposed Ward Boundary Map Based on the 2010 Federal Census Results and Approval of Resolution At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population
based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was
further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input
at the public hearing and consider adoption of the requisite resolution. At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
Newsletter about the City Council meeting of June 7, 2011 -- Addendum on "The Newly Proposed Ward Boundary Map"
Save Democracy at the local level meeting - June 11, 2011 - 10am to Noon
SAVE DEMOCRACY AT THE LOCAL LEVEL IN HICKORY, NC All interested groups and citizens are invited to a citywide coalition meeting of
CITIZENS FOR EQUITY IN GOVERNMENT - Saturday, June 11, 2011 -10:00 am to Noon
Patrick Beaver Memorial Library Meeting Room, 375 3rd Street NE, Hickory, NC 28602
Contact: Billy Sudderth, 828 308 4669
New Business - Departmental Reports:
1. Consideration of Offer to Purchase and Contract for Property Owned by Joe Robert LaFone, Sr. Heirs Located at 230 3rd Street, SW in the Amount of $16,000 - Staff requests consideration to purchase a .46 acre vacant lot owned by Joe Robert LaFone, Sr. Heirs located at 230 3rd Street, SW. The property is adjacent to 6.59 acres owned by the City of Hickory and could potentially be used for expansion of the Hickory Police Department. The offer is based on an asking price of $16,000 and a tax value of $10,000. Chief Tom Adkins made the presentation and went over the above information. The Council unanimously consented.
Wednesday, June 8, 2011
Newsletter about the City Council meeting of June 7, 2011 -- Addendum on "The Newly Proposed Ward Boundary Map"
Continuation of Public Hearing of May 17, 2011 – Proposed Ward Boundary Map Based on the 2010 Federal Census Results and Approval of Resolution
At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input at the public hearing and consider adoption of the requisite resolution.
At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
Four people spoke againt this proposal. The first person person to speak was Barbara Byrd, she spoke about what was going on back in the 1970s when she grew up. She spoke about there being no purpose at that time that kids were dropping out of school... had nothing to do and everything to lose, but who cares and who loses. She spoke about the Jim Crow law, which occurred during this era and it is still being practiced here today. Over 40 years, you would think that this would overcome and respect all races -- a lesson to be learned in itself. Why should we be reminded of racism, name calling, riots, seperate this, separate that, all of this for a huge political power struggle that you people hold offices to stand for us as people and citizens of Hickory. Questions are being asked, what can we do to end this era? What is expected from our city officials? More so, what is expected of us to help move this city of Hickory to the next level for all people? We need representation from all, including all races, to help make this happen. No one can begin to think or feel or never act upon our community, in which we live, which is Ward 4 Ridgeview. We all need to be on the same page, so let's try to realign and move forward. Leave all of this Jim Crow Law behind and thrive for the future. What is so wrong with wanting to move the Ward lines so that we can get better representation so that we can get proper representation so our voice can be heard. We have plenty of issues that need to be addressed as well, such as poverty out of our neighborhood... raise the standards for higher education and exemplify our place in society, so that we can improve all of our kids for the betterment of our children, our heritage, and our dignity. Let's lay down this Jim Crow law tonight, because we can only dream of an All-American City. Which one of these communities? Ours bleed so yours is going to bleed also. Don't take the soul and heart out of ward 4. Let it thrive. One day we can all stand proud and say to you, this is an All-American City in which we live. And tonight, please keep in mind that our children are our future. Our community belongs to each and every one of us. All we ask is that we have a voice, the same as you guys do, and that we feel comfortable in our homes at night. Say yes to some of these wrad lines that really need to be adjusted for all people.
The following comment will be summarizations of the statements of James Franklin Davis, Deborah McNeur, and Larry Pope:
J. Franklin (Jimmy) Davis addressed the Council. The decision that you've made indicates that The City is going to prioritize incumbency protection over minority voting rights and that is a pretty undemocratic position to take. The current method of elections is unfair. If future conditions of elections continue to bear out the trend that candidates that are the choice of minority voters cannot win when pitted against white candidates, in an at large election, then you will have to reevaluate your legal options. Jimmy then used a couple of segments that went over questions that have been asked on the Hickory Hound in the January Rant entitled the Pursuit of Excellence. He then speaks of a Bible quote, "Take heed who is chief amongst you and let them be your servant." Are you (the council) the he who is being referred to. The ultimate measure of a man or woman is not where he or she stands in moments of comfort or convenience, but where he or she stands at times of challenge and controversy. The true neighbor will risk his position, his status, and even his life for the welfare of others. Studies show Hickory at the bottom of the barrel in just about every national study that e have seen, yet Council members are patting themselves on the back and are proud of the work that they are doing -- Really? Jimmy then went into the State of Hickory 2011. "We don’t need leaders who are in the political arena to stroke their ego. We need leaders in this community who are thinkers and who are intellectually curious. We need leaders who know how jobs are created, because if they don’t, they could cause the loss of jobs and the empirical evidence of the last decade shows that this was a contributing factor in what happened to our job market. Our leaders lost sight of what businesses need to make employment viable."
Jimmy states that the essence of all of our work, regardless of what particular issue or activity in which we are involved, is to foster a spirit of authentic community. All of our work therefore should promote social, economic, and personal relationships that are firm and realize that equality, dignity, the worth and potential of every person and all peoples. We take care to stand with the poor, the oppressed, any group or person in such a way that we stand for the best interest of the whole.
The next person to speak was Deb McNeur. With all due respect, the Mayor stated that it was unfair to unseat an incumbent by eliminating a seat. That is not really the truth. It would not be in favor of eliminatinating a seat, byt it would be in favor of electing someone of low socio-economic status to the Council to give fair representation to all of the areas. Part of Ward 4 is West Hickory, Westmont, and Green Park also. It's not really a racial issue. (Deb) doesn't like it being divided along racial issues, but it is a south side of the tracks issue. The big issue is the socio-economics. No one from Ward 4 West Hickory could get elected either. She considers the wards having been gerrymandered to keep the status quo in place, which is not conducive to someone being fairly represented that does not have the socio-economics most of you sitting there (City Council) do.
Larry Pope was the next person to speak. Larry commended City staff who had helped him when he had low blood sugar while visiting city hall that morning. He is proud of how they represent the city. They need to be commended. He considers himself a citizen of a very good city. Larry has asked several times about going back to what we had in 1970, in which Council elections were purely ward based. With the blended at-large system, minorities and low income folks in our city don't stand a chance of being elected. (Larry) is a good example. He won his ward 4 times, but when it went to at-large he was defeated, because folks all over the city voted against (Larry), because they couldn't control Larry or he wouldn't vote the way that they wanted him to vote. (Larry) says to (Council) that the only way that we can make elections in the city representative is to let the folks of their ward be chosen by the citizens of their ward. (Larry) is asking tonight for (Council) to give us an answer so that he knows whether they intend to go to Ward election, He wants them to vote on it and how they vote on it. He wants to know whether they will vote to go back to NCGS 160a-104 and go back to ward elections so that citizens can choose who they want to represent them and not have citizens who do not live in that ward choosing who will represent them.
The Mayor stated that he believed that the 3rd proposal should be adopted. It is absolutely no better or worse than alternative 4, except that it unseats a sitting council member. It does not change voting patterns. It does not give more power or less power.
Alder Patton stated that she seconded the motion. Much of what has been discussed ignores that there has been a minority elected to the ward for many years. She truly believes that the city has moved past color. It is not based on color. If there is a viable good candidate that the city wants to elect, then that can incude not just a black, but Asian, Hmong, or Latino. She believes that Hickory would elect a minority.
(Deb McNeur) later spoke up during an address of council and stated that she wanted to remind the Council that the person elected by the at-large vote (Z. Anne Hoyle) was not the choice of the people of that ward. She stated that is the reason why Alderman Guess is on the Council is because the people of ward 4 were not going to vote for M. Hoyle.
Alder Fox stated that she wants to say that she has thought about this and it was a numbers process. She considered it a fair process. All of us regardless of the wards that we represent spend a lot of time in other areas that are not basically our wards. She can speak for council members who have spent hours in areas that they don't represent. She is satisfied with what has taken place here. we were not charged with how to look at how we vote.
The Mayor stated that we had another open meeting and all we are talking about is two percent, but it eliminates a city council member. he feels comfortable with what they have done. It has nothing to do with depriving anyone's voting rights in any way. He can't think of anything realistically that would have changed things.
There was contention as the Council members voted 7-0 to adopt the resolution. Larry Pope demanded that as part of Title 2 of the Americans with Disabilities Act that they state their name and how they voted. The Mayor stated that he was not going to do that unless someone tells him that the law requires that. Attorney Crone stated that it was obvious that it was a 7-0 vote, but did not answer about the legality of the issue. Mr. Pope stated that if forced to that he would challenge the issue in court. He does not know which council members are here or not here. He cannot see a single individual. (Larry)asks for it to be done the way that the law requires it to be done. Hank Guess made a motion that the Council vote in that format. That motion was seconded by several council members. The Mayor stated that they have always voted in an appropriate manner, but in his opinion they should not start saying that they are going to do something that the law requires in one instance, but not another. If the law requires it... Alderman Guess stated that it's not that... Mayor Wright stated that before he votes he wants to know whether the law requires it. Atty. Crone stated that it was clear that every member here voted unanimously, but would not address the legal issue. Crone stated that he doesn't see what the big deal is one way or the other. Lail, Seaver, Guess, Fox, and Patton voted Aye to the voice vote. Mayor Wright and Meisner voted No to the Voice vote. In the voice vote each member stated their name and voted yes to adopt the Ward line third proposal.
The Hound says Whew!!! This was contentious and really doesn't need to be. I don't believe that this is an issue of Jim Crow, separate but equal, law. I can understand the angst of the people of the Ridgeview community over issues with the city in the past. I agree with Deb McNeur that this is an issue of socio-economics and it is an issue of the two sides of the tracks. I don't see anything vitriolic about that being stated.
Look at the precincts that had the highest turnout. They were the Viewmont wards. In my opinion that is because there issues are taken care of. They are choosing who will represent every ward. As has been stated to me, the reason why you don't see neighborhood associations in North Hickory is because their issues are already addressed. They don't need a place to vent their frustrations about their neighborhoods issues.
I also agree that the wards are gerrymandered. There is no rhyme or reason to the way they are drawn. They could come up with these same numbers by drawing a sliced pie map- of Hickory that does not have wards drawn here there and everywhere. I do believe that there should be more direct representation of the specific parts of Hickory. An outside of the box idea and compromise would be to have each quadrant of the city have a representative, with some compromises for population distribution, elected specifically by that quadrant, and then have two at large council positions voted on by people throughout the city and the Mayor. Then have the mayor position with some superceding authority.
Right now, what gives Mayor Wright any more status than the other Council members? They all are voted on by the same electorate in the same manner. Truly, the other Council members have just as much power as the Mayor. If this is going to be the case, then why even have a formal election for a Mayor. Why not have a more parliamentary system with seven wards and let the council members choose who will be the Chairman of the Council.
One thing is for sure. This is an issue. It needs to be debated. We need to know why the Post-1970 electoral model works best. Why are we holding unnecessary primary elections? Why is there such low participation? Do we not want more people to participate? And I am not naive, do people really even care?
At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input at the public hearing and consider adoption of the requisite resolution.
At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
Four people spoke againt this proposal. The first person person to speak was Barbara Byrd, she spoke about what was going on back in the 1970s when she grew up. She spoke about there being no purpose at that time that kids were dropping out of school... had nothing to do and everything to lose, but who cares and who loses. She spoke about the Jim Crow law, which occurred during this era and it is still being practiced here today. Over 40 years, you would think that this would overcome and respect all races -- a lesson to be learned in itself. Why should we be reminded of racism, name calling, riots, seperate this, separate that, all of this for a huge political power struggle that you people hold offices to stand for us as people and citizens of Hickory. Questions are being asked, what can we do to end this era? What is expected from our city officials? More so, what is expected of us to help move this city of Hickory to the next level for all people? We need representation from all, including all races, to help make this happen. No one can begin to think or feel or never act upon our community, in which we live, which is Ward 4 Ridgeview. We all need to be on the same page, so let's try to realign and move forward. Leave all of this Jim Crow Law behind and thrive for the future. What is so wrong with wanting to move the Ward lines so that we can get better representation so that we can get proper representation so our voice can be heard. We have plenty of issues that need to be addressed as well, such as poverty out of our neighborhood... raise the standards for higher education and exemplify our place in society, so that we can improve all of our kids for the betterment of our children, our heritage, and our dignity. Let's lay down this Jim Crow law tonight, because we can only dream of an All-American City. Which one of these communities? Ours bleed so yours is going to bleed also. Don't take the soul and heart out of ward 4. Let it thrive. One day we can all stand proud and say to you, this is an All-American City in which we live. And tonight, please keep in mind that our children are our future. Our community belongs to each and every one of us. All we ask is that we have a voice, the same as you guys do, and that we feel comfortable in our homes at night. Say yes to some of these wrad lines that really need to be adjusted for all people.
The following comment will be summarizations of the statements of James Franklin Davis, Deborah McNeur, and Larry Pope:
J. Franklin (Jimmy) Davis addressed the Council. The decision that you've made indicates that The City is going to prioritize incumbency protection over minority voting rights and that is a pretty undemocratic position to take. The current method of elections is unfair. If future conditions of elections continue to bear out the trend that candidates that are the choice of minority voters cannot win when pitted against white candidates, in an at large election, then you will have to reevaluate your legal options. Jimmy then used a couple of segments that went over questions that have been asked on the Hickory Hound in the January Rant entitled the Pursuit of Excellence. He then speaks of a Bible quote, "Take heed who is chief amongst you and let them be your servant." Are you (the council) the he who is being referred to. The ultimate measure of a man or woman is not where he or she stands in moments of comfort or convenience, but where he or she stands at times of challenge and controversy. The true neighbor will risk his position, his status, and even his life for the welfare of others. Studies show Hickory at the bottom of the barrel in just about every national study that e have seen, yet Council members are patting themselves on the back and are proud of the work that they are doing -- Really? Jimmy then went into the State of Hickory 2011. "We don’t need leaders who are in the political arena to stroke their ego. We need leaders in this community who are thinkers and who are intellectually curious. We need leaders who know how jobs are created, because if they don’t, they could cause the loss of jobs and the empirical evidence of the last decade shows that this was a contributing factor in what happened to our job market. Our leaders lost sight of what businesses need to make employment viable."
Jimmy states that the essence of all of our work, regardless of what particular issue or activity in which we are involved, is to foster a spirit of authentic community. All of our work therefore should promote social, economic, and personal relationships that are firm and realize that equality, dignity, the worth and potential of every person and all peoples. We take care to stand with the poor, the oppressed, any group or person in such a way that we stand for the best interest of the whole.
The next person to speak was Deb McNeur. With all due respect, the Mayor stated that it was unfair to unseat an incumbent by eliminating a seat. That is not really the truth. It would not be in favor of eliminatinating a seat, byt it would be in favor of electing someone of low socio-economic status to the Council to give fair representation to all of the areas. Part of Ward 4 is West Hickory, Westmont, and Green Park also. It's not really a racial issue. (Deb) doesn't like it being divided along racial issues, but it is a south side of the tracks issue. The big issue is the socio-economics. No one from Ward 4 West Hickory could get elected either. She considers the wards having been gerrymandered to keep the status quo in place, which is not conducive to someone being fairly represented that does not have the socio-economics most of you sitting there (City Council) do.
Larry Pope was the next person to speak. Larry commended City staff who had helped him when he had low blood sugar while visiting city hall that morning. He is proud of how they represent the city. They need to be commended. He considers himself a citizen of a very good city. Larry has asked several times about going back to what we had in 1970, in which Council elections were purely ward based. With the blended at-large system, minorities and low income folks in our city don't stand a chance of being elected. (Larry) is a good example. He won his ward 4 times, but when it went to at-large he was defeated, because folks all over the city voted against (Larry), because they couldn't control Larry or he wouldn't vote the way that they wanted him to vote. (Larry) says to (Council) that the only way that we can make elections in the city representative is to let the folks of their ward be chosen by the citizens of their ward. (Larry) is asking tonight for (Council) to give us an answer so that he knows whether they intend to go to Ward election, He wants them to vote on it and how they vote on it. He wants to know whether they will vote to go back to NCGS 160a-104 and go back to ward elections so that citizens can choose who they want to represent them and not have citizens who do not live in that ward choosing who will represent them.
The Mayor stated that he believed that the 3rd proposal should be adopted. It is absolutely no better or worse than alternative 4, except that it unseats a sitting council member. It does not change voting patterns. It does not give more power or less power.
Alder Patton stated that she seconded the motion. Much of what has been discussed ignores that there has been a minority elected to the ward for many years. She truly believes that the city has moved past color. It is not based on color. If there is a viable good candidate that the city wants to elect, then that can incude not just a black, but Asian, Hmong, or Latino. She believes that Hickory would elect a minority.
(Deb McNeur) later spoke up during an address of council and stated that she wanted to remind the Council that the person elected by the at-large vote (Z. Anne Hoyle) was not the choice of the people of that ward. She stated that is the reason why Alderman Guess is on the Council is because the people of ward 4 were not going to vote for M. Hoyle.
Alder Fox stated that she wants to say that she has thought about this and it was a numbers process. She considered it a fair process. All of us regardless of the wards that we represent spend a lot of time in other areas that are not basically our wards. She can speak for council members who have spent hours in areas that they don't represent. She is satisfied with what has taken place here. we were not charged with how to look at how we vote.
The Mayor stated that we had another open meeting and all we are talking about is two percent, but it eliminates a city council member. he feels comfortable with what they have done. It has nothing to do with depriving anyone's voting rights in any way. He can't think of anything realistically that would have changed things.
There was contention as the Council members voted 7-0 to adopt the resolution. Larry Pope demanded that as part of Title 2 of the Americans with Disabilities Act that they state their name and how they voted. The Mayor stated that he was not going to do that unless someone tells him that the law requires that. Attorney Crone stated that it was obvious that it was a 7-0 vote, but did not answer about the legality of the issue. Mr. Pope stated that if forced to that he would challenge the issue in court. He does not know which council members are here or not here. He cannot see a single individual. (Larry)asks for it to be done the way that the law requires it to be done. Hank Guess made a motion that the Council vote in that format. That motion was seconded by several council members. The Mayor stated that they have always voted in an appropriate manner, but in his opinion they should not start saying that they are going to do something that the law requires in one instance, but not another. If the law requires it... Alderman Guess stated that it's not that... Mayor Wright stated that before he votes he wants to know whether the law requires it. Atty. Crone stated that it was clear that every member here voted unanimously, but would not address the legal issue. Crone stated that he doesn't see what the big deal is one way or the other. Lail, Seaver, Guess, Fox, and Patton voted Aye to the voice vote. Mayor Wright and Meisner voted No to the Voice vote. In the voice vote each member stated their name and voted yes to adopt the Ward line third proposal.
The Hound says Whew!!! This was contentious and really doesn't need to be. I don't believe that this is an issue of Jim Crow, separate but equal, law. I can understand the angst of the people of the Ridgeview community over issues with the city in the past. I agree with Deb McNeur that this is an issue of socio-economics and it is an issue of the two sides of the tracks. I don't see anything vitriolic about that being stated.
Look at the precincts that had the highest turnout. They were the Viewmont wards. In my opinion that is because there issues are taken care of. They are choosing who will represent every ward. As has been stated to me, the reason why you don't see neighborhood associations in North Hickory is because their issues are already addressed. They don't need a place to vent their frustrations about their neighborhoods issues.
I also agree that the wards are gerrymandered. There is no rhyme or reason to the way they are drawn. They could come up with these same numbers by drawing a sliced pie map- of Hickory that does not have wards drawn here there and everywhere. I do believe that there should be more direct representation of the specific parts of Hickory. An outside of the box idea and compromise would be to have each quadrant of the city have a representative, with some compromises for population distribution, elected specifically by that quadrant, and then have two at large council positions voted on by people throughout the city and the Mayor. Then have the mayor position with some superceding authority.
Right now, what gives Mayor Wright any more status than the other Council members? They all are voted on by the same electorate in the same manner. Truly, the other Council members have just as much power as the Mayor. If this is going to be the case, then why even have a formal election for a Mayor. Why not have a more parliamentary system with seven wards and let the council members choose who will be the Chairman of the Council.
One thing is for sure. This is an issue. It needs to be debated. We need to know why the Post-1970 electoral model works best. Why are we holding unnecessary primary elections? Why is there such low participation? Do we not want more people to participate? And I am not naive, do people really even care?
Tuesday, June 7, 2011
Mayor Rudy Wright and the $20 million Idea
From the Monday Morning meeting with the Mayor on Hal Row's First Talk program, June 6, 2011: I was listening to Hal and the Mayor talk about a Game changing Investment and if people have an idea that he wants them to bring it to him, no matter how big or small, this is the third month in a row that the Mayor has talked about this idea. $20 million has always been this number that he constantly brings up. He defines it as a parameter, but in the end -- in my opinion -- this is all about politics and frankly, although he's entitled to say whatever he wants, I am personally getting tired of hearing it. He states that he and the Council would take it (the Right Idea) to the people. What parameter defines "The People." First, if I have a $20 million idea, why am I going to bring it to the Mayor. What is his track record of making things happen? And why should I not be worried about it being steered away from myself and towards more connected interests?
Hal brings up the idea about municipal golf courses and the Mayor makes a simple statement about them having mixed reviews. My paranoid side felt like they were trying to poke and prod me to call in and state that I would be against it because it would compete against the local Private Clubs. I could give two piles of horse hockey about that. I know that this would not be a good time to call in about such a subject when one of our areas most important marketing events is taking place. However, my argument would be that there is an over saturation of golf facilities in our community already, especially with the current state of the economy. Go ask the existing golf facilities how their present revenues are going. Most of these "Golfers" don't have a clue about the intensive investment that it takes to run a proper Golf facility.
The next thesis of this program was that we need to bring more retirees into this community. I already have pointed out why I believe this to be a mistake -- ad nauseum. I am willing to debate the Mayor any time and any place on this issue. These two men kept talking about how it would create construction jobs, because these people buy houses and Hal was talking about how these people would buy houses on these municipal golf courses. Let me get this right. We don't have money to spend a few hundred thousand dollars to create a community swimming pool, but we have millions of dollars to spend on building golf courses with the hope that golf lovers will flock to the Hickory to play golf to infinity. We don't take care of the Citizens of Hickory now, but they want to bring in new people that they expect to cater to. Yeah right!!!
Ladies and gentleman, someone has to come out of the woodwork and I have been thinking about two years from now, because we cannot afford to remain on this path to nowhere that we are on. Hickory is a political microcosm of what we see from other dysfunctional governments that we see throughout the World. These governments have detached themselves from the people and do not look at themselves as public servants, instead we are looked upon as subjects. They look to themselves as Authorities and Authorities authorize.
I honestly think the Mayor has no intentions of doing anything. We are not moving forward in this community and the Mayor is basically telling you that he has no ideas. If he had any ideas about how to generate anything economic, then he would not be asking you for yours!!! And to a degree he has implemented his policies, which are to cut, cut, cut, cut.... the budget and by consequence reduce the effectiveness of the local government. Where is $20 million going to all of the sudden appear from?
With this act of desperation, the $20 million idea, he displays over and over again that he thinks he is the final arbiter of whether an idea is good or not and I have never heard him state that any idea sounds great. It is always that he needs to study it further or it has had mixed reviews or it hasn't worked somewhere else or people are looking for "The Right Idea."
The Mayor is becoming a caricature of how Old South Mayors were characterized on television shows like Andy Griffith, etc. back in the days of black and white TV -- jumping in front of the crowd on popular issues, while being scared to death to take any chances, because some political negativity might be pinned on him if he were wrong. I hate to say that, but when he is constantly making these broadbrushed generalities about community investment and other over simplified statements that he has made about the local economic situation and the scenarios to be played out over the next generation, then one can see that he has no intention of doing anything outside of the box to move this community forward. It is a Medicine Man approach to make a situation look grander than it is.
I want someone to come along, who is willing to face down this mess, this lack of focus, and this lack of leadership that is present day Hickory. I am not here to attack people. I do want to help, but I am given nothing to work with. Our leaders keep pushing this notion of this being a cheap place to live. That isn't a great way to attract the movers and shakers of this world. Smart people understand the concept of Cheap Begets Cheap. We need to stress Excellence and Value related to that excellence!!! We don't want to be a cheap place to live with cheap wages and amenities. We want to be a community with an excellent Quality of Life where people are happy and don't have to work two and three jobs to make ends meet; who can say that they don't have to sacrifice their way through life. There is a big difference between what our leaders consider sacrificing and what I am telling you about sacrificing.
We have got to move forward and stop worrying about political gamesmanship and instead think about the people. The people who have Hickory in their blood. Politics will not resolve Hickory's issues. It is going to take someone that will lay the facts out to the folks and be willing to lose in order to win. If you are trying to become Mayor for the next generation, then you will be part of the problem. If you want to get some things done around here and are willing to take some heat from the entrenched interests, then we can get some things done around here. Talk is cheap, let's step up to the plate and make some things happen.
Hal brings up the idea about municipal golf courses and the Mayor makes a simple statement about them having mixed reviews. My paranoid side felt like they were trying to poke and prod me to call in and state that I would be against it because it would compete against the local Private Clubs. I could give two piles of horse hockey about that. I know that this would not be a good time to call in about such a subject when one of our areas most important marketing events is taking place. However, my argument would be that there is an over saturation of golf facilities in our community already, especially with the current state of the economy. Go ask the existing golf facilities how their present revenues are going. Most of these "Golfers" don't have a clue about the intensive investment that it takes to run a proper Golf facility.
The next thesis of this program was that we need to bring more retirees into this community. I already have pointed out why I believe this to be a mistake -- ad nauseum. I am willing to debate the Mayor any time and any place on this issue. These two men kept talking about how it would create construction jobs, because these people buy houses and Hal was talking about how these people would buy houses on these municipal golf courses. Let me get this right. We don't have money to spend a few hundred thousand dollars to create a community swimming pool, but we have millions of dollars to spend on building golf courses with the hope that golf lovers will flock to the Hickory to play golf to infinity. We don't take care of the Citizens of Hickory now, but they want to bring in new people that they expect to cater to. Yeah right!!!
Ladies and gentleman, someone has to come out of the woodwork and I have been thinking about two years from now, because we cannot afford to remain on this path to nowhere that we are on. Hickory is a political microcosm of what we see from other dysfunctional governments that we see throughout the World. These governments have detached themselves from the people and do not look at themselves as public servants, instead we are looked upon as subjects. They look to themselves as Authorities and Authorities authorize.
I honestly think the Mayor has no intentions of doing anything. We are not moving forward in this community and the Mayor is basically telling you that he has no ideas. If he had any ideas about how to generate anything economic, then he would not be asking you for yours!!! And to a degree he has implemented his policies, which are to cut, cut, cut, cut.... the budget and by consequence reduce the effectiveness of the local government. Where is $20 million going to all of the sudden appear from?
With this act of desperation, the $20 million idea, he displays over and over again that he thinks he is the final arbiter of whether an idea is good or not and I have never heard him state that any idea sounds great. It is always that he needs to study it further or it has had mixed reviews or it hasn't worked somewhere else or people are looking for "The Right Idea."
The Mayor is becoming a caricature of how Old South Mayors were characterized on television shows like Andy Griffith, etc. back in the days of black and white TV -- jumping in front of the crowd on popular issues, while being scared to death to take any chances, because some political negativity might be pinned on him if he were wrong. I hate to say that, but when he is constantly making these broadbrushed generalities about community investment and other over simplified statements that he has made about the local economic situation and the scenarios to be played out over the next generation, then one can see that he has no intention of doing anything outside of the box to move this community forward. It is a Medicine Man approach to make a situation look grander than it is.
I want someone to come along, who is willing to face down this mess, this lack of focus, and this lack of leadership that is present day Hickory. I am not here to attack people. I do want to help, but I am given nothing to work with. Our leaders keep pushing this notion of this being a cheap place to live. That isn't a great way to attract the movers and shakers of this world. Smart people understand the concept of Cheap Begets Cheap. We need to stress Excellence and Value related to that excellence!!! We don't want to be a cheap place to live with cheap wages and amenities. We want to be a community with an excellent Quality of Life where people are happy and don't have to work two and three jobs to make ends meet; who can say that they don't have to sacrifice their way through life. There is a big difference between what our leaders consider sacrificing and what I am telling you about sacrificing.
We have got to move forward and stop worrying about political gamesmanship and instead think about the people. The people who have Hickory in their blood. Politics will not resolve Hickory's issues. It is going to take someone that will lay the facts out to the folks and be willing to lose in order to win. If you are trying to become Mayor for the next generation, then you will be part of the problem. If you want to get some things done around here and are willing to take some heat from the entrenched interests, then we can get some things done around here. Talk is cheap, let's step up to the plate and make some things happen.
Sunday, June 5, 2011
Economic Stories of Relevance in Today's World -- June 5, 2011
US house price fall 'beats Great Depression slide - The Independent on Sunday - By Stephen Foley - June 1, 2011 - The ailing US housing market passed a grim milestone in the first quarter of this year, posting a further deterioration that means the fall in house prices is now greater than that suffered during the Great Depression... The brief recovery in prices in 2009, spurred by government aid to first-time buyers, has now been entirely snuffed out, and the average American home now costs 33 per cent less than it did at the peak of the housing bubble in 2007. The peak-to-trough fall in house prices in the 1930s Depression was 31 per cent – and prices took 19 years to recover after that downturn... The latest Case-Shiller house price index was just one of a slew of disappointing economic data from the US yesterday, which suggested ebbing confidence in the recovery of the world's largest economy. The Chicago PMI manufacturing index showed a sharp slowdown in the pace of expansion in May, missing Wall Street forecasts and sending the index to its lowest since November 2009.
Why housing is in a depression - Commentary: New data says the double dip is even worse than the 1930s - Marketwatch - Brett Arends - June 1, 2011 - And the Case-Shiller data masks huge variations in housing markets. Prices have collapsed many suburbs, exurbs, rural areas, and in well-known disaster sites like Miami, Las Vegas and Phoenix. Meanwhile the declines have been much milder in places like Manhattan or Boston. Some high-end real estate is actually selling well. The buyers have money... Is there a silver lining to this? Well, maybe... If you can get the financing, housing is now cheap. Really cheap. Capital Economics reckons housing is now 24% undervalued, and is the cheapest it’s been in thirty-five years... With mortgages rates on the floor, and inflation surely brewing down the road, housing in many parts of the country looks like a good deal. But you’ll have to be patient to see the biggest rewards. Capital Economics says, back in the Depression, it took 19 years for house prices to recover to their previous peaks.
Dreaded Double-Dip Is Here - Greg Hunter - USA Watchdog - June 1, 2011 - Another one of my favorite people to quote is economist John Williams of Shadowstats.com. He has been warning about a sinking economy for months and has been saying any good news is nothing more than “bottom bouncing.” In his most recent report, Williams said, “Most major economic reports in April disappointed consensus expectations and either were flat or negative for the month—including real retail sales, industrial production, housing starts and durable goods orders. Where first-quarter GDP growth slowed versus the fourth-quarter, the stage is set for the GDP to turn negative, again, sometime in the next two quarters, reflecting what would become an official double-dip recession.” Housing has been an unqualified disaster with housing starts and new home sales off 75% from the 2005 peak. Existing home sales are off nearly 30%, and of the homes that are sold, nearly 40% are foreclosures. Four in 10 homes sold as distressed properties do not signal a healthy economy—just the opposite... So, where are we headed? Well, all this bad news is going to push the Fed to print more money to keep the banks from going under. QE2 is supposed to end June 30, but the consensus of experts I quoted said it won’t be long before there is QE3. It will be either overt or covert, but it will be instituted. A double-dip in housing could start a daisy chain of very bad news for the big banks exposed to derivatives and residential real estate. (I wrote about this a few months back. Click here for the complete original post.) Williams agrees, and in his latest report he said, “The Federal Reserve is a private corporation owned by commercial banks or banking interests. The Fed’s primary job is not to generate sustainable economic growth, nor to contain inflation, but rather to keep the banking system sound and healthy. Accordingly QE1 and QE2 likely were targeted primarily at addressing systemic solvency issues, with the Fed using the weak economy as cover. As the systemic solvency crisis continues and/or intensifies, an overt or covert QE3 likely will be in place by third-quarter 2011, under the cover of a deteriorating economy. The broad inflation and economic outlooks discussed in Hyperinflation Special Report (2011) continue unabated.”... Williams thinks there is going to be a “great collapse” between now and 2014. Yes, the dollar and the entire financial system could go down in a giant hyper-inflationary ball of fire. The buying power of the buck will be completely wiped out. Please keep in mind, more than $12 trillion in liquid assets are held outside of the U.S. A stampede out of the dollar could trigger a hyperinflationary event at any time. At the very least, count on increasing inflation in everything but housing.
Half of Last Month's New Jobs Came from a Single Employer — McDonald's - The Weekly Standard - Mark Hemingway - Jun 3, 2011 - According to the unemployment data released this morning, the economy added only 54,000 jobs, pushing the unemployment rate up to 9.1 percent. However, this report from MarketWatch suggests the data is much worse than that.... McDonald’s ran a big hiring day on April 19 — after the Labor Department’s April survey for the payrolls report was conducted — in which 62,000 jobs were added. That’s not a net number, of course, and seasonal adjustment will reduce the Hamburglar impact on payrolls. (In simpler terms — restaurants always staff up for the summer; the Labor Department makes allowance for this effect.) Morgan Stanley estimates McDonald’s hiring will boost the overall number by 25,000 to 30,000. The Labor Department won’t detail an exact McDonald’s figure — they won’t identify any company they survey — but there will be data in the report to give a rough estimate.... If Morgan Stanley is correct, about half of last month's job growth came from the venerable fast-food chain. That is hardly the sign of a healthy economy.
Offshoring has Destroyed the US Economy - Nobel Economist Michael Spence Says Globalism Is Costly For Americans - GlobalResearch.ca - by Dr. Paul Craig Roberts - May 31, 2011 - These are discouraging times, but once in a blue moon a bit of hope appears. I am pleased to report on the bit of hope delivered in March of 2011 by Michael Spence, a Nobel prize-winning economist, assisted by Sandile Hlatshwayo, a researcher at New York University. The two economists have taken a careful empirical look at jobs offshoring and concluded that it has ruined the income and employment prospects for most Americans... All of this was over the heads of “free trade” ideologues, who threw accusations such as “protectionist” at Sir James, Roger Milliken, Herman Daly, Ralph Gomory, Charles McMillion, and myself. These “free trade” ideologues are economically incompetent. They do not know that the justification for free trade is based on the principle of comparative advantage, which means that a country specializes in those economic activities in which it performs best and trades for those goods that other countries do best. Instead, the ideologues think that free trade means the freedom of capital to seek absolute advantage abroad in lowest factor cost. In other words, the free trade incompetents have never read David Ricardo, who formalized the case for free trade... Other economists, especially those high profile ones in high profile academic institutions, were bought and paid for. http://www.informationclearinghouse.info/article28189.htm In exchange for grants from offshoring corporations these hirelings invented “the New Economy,” in which everyone would prosper as a result of getting rid of “dirty fingernail jobs.” The New Economy wouldn’t make anything, but it would lead the world in innovation and in financing what others did make. The “new economists” were not sufficiently bright to realize that if a country didn’t make anything, it couldn’t innovate... To find a Nobel prize-winner documenting the high cost of globalism to developed economies is extraordinary. For the Council on Foreign Relations to publish it suggests that the Establishment, or some part of it, suspects that its hubris has run away with its fortunes, and that different thinking is needed to restore the US economy.
The Federal Reserve Cartel: The Eight Families - Global Research - Dean Henderson - June 1, 2011 - The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths. But their monopoly over the global economy does not end at the edge of the oil patch... According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.[1]... So who then are the stockholders in these money center banks?... This information is guarded much more closely. My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather ironic, since many of the bank’s stockholders reside in Europe.... One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation - founded in 1853 and now owned by Bank of America. A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild. Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. [2]...
Pinks Slips Coming For 450,000 State and Local Government Employees in 2012 - SHTFplan.com - Mac Salvo - May 26, 2011 - In June of 2010 we noted that well known financial sector analyst and the woman who blew the doors open on the 2008 mortgage crisis, Meredith Whitney, was forecasting that two million government employees would see their jobs cut over coming years because of fiscal problems.... It’s happening.... Over 300,000 jobs have been cut in fiscal year 2011, and that number is about to increase 50% going into 2012:
War Zones: As The Economy Dies, Murders, Shootings, Robberies And Looting Erupt All Over America - Before It's news - Wednesday, June 01, 2011 - As the U.S. economy falls apart and millions of Americans descend into despair we are seeing some really shocking things start to happen all over America. The mainstream media keeps telling us that crime is under control, but they are also the ones that keep telling us that we are in the midst of an "economic recovery". Unfortunately, the truth is that the economy is slowly dying. Today, an all-time record 44 million Americans are on food stamps. That number is 18 million higher than it was just four years ago. When people can't get jobs and when people feel deprived they get desperate. The incidents that you are about to see and read about below are very disturbing. Many American communities are rapidly turning into war zones. Sadly, it is mostly young people that are involved in the crimes and the violence that are now sweeping America.... Yesterday, I wrote an article entitled "18 Signs That Life In U.S. Public Schools Is Now Essentially Equivalent To Life In U.S. Prisons", and there were some readers that objected to the article because they said that the youth of today are so wild that if you don't use extreme measures they will just be completely out of control.... John Adams, the second president of the United States, once made the following statement: "We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other.".... Today, we have an incredibly wicked and immoral government that is governing a population that cannot even agree on what "right and wrong" are anymore.
John Williams of ShadowStats.com - May 31, 2011
Why housing is in a depression - Commentary: New data says the double dip is even worse than the 1930s - Marketwatch - Brett Arends - June 1, 2011 - And the Case-Shiller data masks huge variations in housing markets. Prices have collapsed many suburbs, exurbs, rural areas, and in well-known disaster sites like Miami, Las Vegas and Phoenix. Meanwhile the declines have been much milder in places like Manhattan or Boston. Some high-end real estate is actually selling well. The buyers have money... Is there a silver lining to this? Well, maybe... If you can get the financing, housing is now cheap. Really cheap. Capital Economics reckons housing is now 24% undervalued, and is the cheapest it’s been in thirty-five years... With mortgages rates on the floor, and inflation surely brewing down the road, housing in many parts of the country looks like a good deal. But you’ll have to be patient to see the biggest rewards. Capital Economics says, back in the Depression, it took 19 years for house prices to recover to their previous peaks.
Dreaded Double-Dip Is Here - Greg Hunter - USA Watchdog - June 1, 2011 - Another one of my favorite people to quote is economist John Williams of Shadowstats.com. He has been warning about a sinking economy for months and has been saying any good news is nothing more than “bottom bouncing.” In his most recent report, Williams said, “Most major economic reports in April disappointed consensus expectations and either were flat or negative for the month—including real retail sales, industrial production, housing starts and durable goods orders. Where first-quarter GDP growth slowed versus the fourth-quarter, the stage is set for the GDP to turn negative, again, sometime in the next two quarters, reflecting what would become an official double-dip recession.” Housing has been an unqualified disaster with housing starts and new home sales off 75% from the 2005 peak. Existing home sales are off nearly 30%, and of the homes that are sold, nearly 40% are foreclosures. Four in 10 homes sold as distressed properties do not signal a healthy economy—just the opposite... So, where are we headed? Well, all this bad news is going to push the Fed to print more money to keep the banks from going under. QE2 is supposed to end June 30, but the consensus of experts I quoted said it won’t be long before there is QE3. It will be either overt or covert, but it will be instituted. A double-dip in housing could start a daisy chain of very bad news for the big banks exposed to derivatives and residential real estate. (I wrote about this a few months back. Click here for the complete original post.) Williams agrees, and in his latest report he said, “The Federal Reserve is a private corporation owned by commercial banks or banking interests. The Fed’s primary job is not to generate sustainable economic growth, nor to contain inflation, but rather to keep the banking system sound and healthy. Accordingly QE1 and QE2 likely were targeted primarily at addressing systemic solvency issues, with the Fed using the weak economy as cover. As the systemic solvency crisis continues and/or intensifies, an overt or covert QE3 likely will be in place by third-quarter 2011, under the cover of a deteriorating economy. The broad inflation and economic outlooks discussed in Hyperinflation Special Report (2011) continue unabated.”... Williams thinks there is going to be a “great collapse” between now and 2014. Yes, the dollar and the entire financial system could go down in a giant hyper-inflationary ball of fire. The buying power of the buck will be completely wiped out. Please keep in mind, more than $12 trillion in liquid assets are held outside of the U.S. A stampede out of the dollar could trigger a hyperinflationary event at any time. At the very least, count on increasing inflation in everything but housing.
Half of Last Month's New Jobs Came from a Single Employer — McDonald's - The Weekly Standard - Mark Hemingway - Jun 3, 2011 - According to the unemployment data released this morning, the economy added only 54,000 jobs, pushing the unemployment rate up to 9.1 percent. However, this report from MarketWatch suggests the data is much worse than that.... McDonald’s ran a big hiring day on April 19 — after the Labor Department’s April survey for the payrolls report was conducted — in which 62,000 jobs were added. That’s not a net number, of course, and seasonal adjustment will reduce the Hamburglar impact on payrolls. (In simpler terms — restaurants always staff up for the summer; the Labor Department makes allowance for this effect.) Morgan Stanley estimates McDonald’s hiring will boost the overall number by 25,000 to 30,000. The Labor Department won’t detail an exact McDonald’s figure — they won’t identify any company they survey — but there will be data in the report to give a rough estimate.... If Morgan Stanley is correct, about half of last month's job growth came from the venerable fast-food chain. That is hardly the sign of a healthy economy.
Offshoring has Destroyed the US Economy - Nobel Economist Michael Spence Says Globalism Is Costly For Americans - GlobalResearch.ca - by Dr. Paul Craig Roberts - May 31, 2011 - These are discouraging times, but once in a blue moon a bit of hope appears. I am pleased to report on the bit of hope delivered in March of 2011 by Michael Spence, a Nobel prize-winning economist, assisted by Sandile Hlatshwayo, a researcher at New York University. The two economists have taken a careful empirical look at jobs offshoring and concluded that it has ruined the income and employment prospects for most Americans... All of this was over the heads of “free trade” ideologues, who threw accusations such as “protectionist” at Sir James, Roger Milliken, Herman Daly, Ralph Gomory, Charles McMillion, and myself. These “free trade” ideologues are economically incompetent. They do not know that the justification for free trade is based on the principle of comparative advantage, which means that a country specializes in those economic activities in which it performs best and trades for those goods that other countries do best. Instead, the ideologues think that free trade means the freedom of capital to seek absolute advantage abroad in lowest factor cost. In other words, the free trade incompetents have never read David Ricardo, who formalized the case for free trade... Other economists, especially those high profile ones in high profile academic institutions, were bought and paid for. http://www.informationclearinghouse.info/article28189.htm In exchange for grants from offshoring corporations these hirelings invented “the New Economy,” in which everyone would prosper as a result of getting rid of “dirty fingernail jobs.” The New Economy wouldn’t make anything, but it would lead the world in innovation and in financing what others did make. The “new economists” were not sufficiently bright to realize that if a country didn’t make anything, it couldn’t innovate... To find a Nobel prize-winner documenting the high cost of globalism to developed economies is extraordinary. For the Council on Foreign Relations to publish it suggests that the Establishment, or some part of it, suspects that its hubris has run away with its fortunes, and that different thinking is needed to restore the US economy.
The Federal Reserve Cartel: The Eight Families - Global Research - Dean Henderson - June 1, 2011 - The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths. But their monopoly over the global economy does not end at the edge of the oil patch... According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.[1]... So who then are the stockholders in these money center banks?... This information is guarded much more closely. My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather ironic, since many of the bank’s stockholders reside in Europe.... One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation - founded in 1853 and now owned by Bank of America. A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild. Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. [2]...
Pinks Slips Coming For 450,000 State and Local Government Employees in 2012 - SHTFplan.com - Mac Salvo - May 26, 2011 - In June of 2010 we noted that well known financial sector analyst and the woman who blew the doors open on the 2008 mortgage crisis, Meredith Whitney, was forecasting that two million government employees would see their jobs cut over coming years because of fiscal problems.... It’s happening.... Over 300,000 jobs have been cut in fiscal year 2011, and that number is about to increase 50% going into 2012:
War Zones: As The Economy Dies, Murders, Shootings, Robberies And Looting Erupt All Over America - Before It's news - Wednesday, June 01, 2011 - As the U.S. economy falls apart and millions of Americans descend into despair we are seeing some really shocking things start to happen all over America. The mainstream media keeps telling us that crime is under control, but they are also the ones that keep telling us that we are in the midst of an "economic recovery". Unfortunately, the truth is that the economy is slowly dying. Today, an all-time record 44 million Americans are on food stamps. That number is 18 million higher than it was just four years ago. When people can't get jobs and when people feel deprived they get desperate. The incidents that you are about to see and read about below are very disturbing. Many American communities are rapidly turning into war zones. Sadly, it is mostly young people that are involved in the crimes and the violence that are now sweeping America.... Yesterday, I wrote an article entitled "18 Signs That Life In U.S. Public Schools Is Now Essentially Equivalent To Life In U.S. Prisons", and there were some readers that objected to the article because they said that the youth of today are so wild that if you don't use extreme measures they will just be completely out of control.... John Adams, the second president of the United States, once made the following statement: "We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other.".... Today, we have an incredibly wicked and immoral government that is governing a population that cannot even agree on what "right and wrong" are anymore.
John Williams of ShadowStats.com - May 31, 2011
Friday, June 3, 2011
The 800 lb. Gorilla - Increasing Jobs = Leveling the Global Playing Field
We can push all of the notions in the world about a service oriented creative economy, but if we don't get consumers back, then we won't grow the economy again. What does it take to grow consumption? People have to have money. How do people get money? As the EF Hutton commercial used to state, "They EEAARRNN IT!!!"
How do they earn it. The average person earns money through labor (a job), We have so debased our real job market, that it is no longer functioning properly. The National average real wage (Based on the Consumer Price Index) has not risen in almost two generations and I will bet you that it has actually fallen "substantially" in our area over that same time.
Below is an excellent article that I have read today that shows ten signs that we are in a free fall and I mean free fall in our economy.
10 Worrying Signs Obviously Missed During Tuesday's Market Rally - http://seekingalpha.com/article/272761-10-worrying-signs-obviously-missed-during-tuesday-s-market-rally?source=email_macro_view
Yes, call me an alarmist. Somebody has to be. But look at the real news. Turn off the TV and get on your computer and use the search engine. It will give you a completely different perspective than the pablum.
How do they earn it. The average person earns money through labor (a job), We have so debased our real job market, that it is no longer functioning properly. The National average real wage (Based on the Consumer Price Index) has not risen in almost two generations and I will bet you that it has actually fallen "substantially" in our area over that same time.
Below is an excellent article that I have read today that shows ten signs that we are in a free fall and I mean free fall in our economy.
10 Worrying Signs Obviously Missed During Tuesday's Market Rally - http://seekingalpha.com/article/272761-10-worrying-signs-obviously-missed-during-tuesday-s-market-rally?source=email_macro_view
Yes, call me an alarmist. Somebody has to be. But look at the real news. Turn off the TV and get on your computer and use the search engine. It will give you a completely different perspective than the pablum.
...According to the latest S&P/Case-Shiller price index the National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level. This means housing prices have now fallen by more than they did during the Great Depression. It also means the housing market is not recovering anytime soon and declines seem to be accelerating.
...Tax revenues were 14.9 percent of G.D.P. in both 2009, and 2010. This is substantially less than the 18.5% postwar average. This means the economy is still struggling and one of key ways to slow the deficit is sorely lagging.
...The Financial Times bureau chief, Jamil Anderlini, came out with a piece showing how the growth in the Chinese property market is not sustainable. Given that some estimates show China now consumes up to 50 percent of key global commodities and materials such as cement, iron ore, steel and coal and Chinese real estate is the main driver of that demand; the bursting of this bubble or even a significant slowdown will have worldwide ramifications.
... May Consumer Confidence fell to 60.8. Estimates were for a reading of 66.3. Chicago PMI (The National outlook for Purchasing Manager's Index) was released and showed a reading of 56.3. This was much lower than the expected projection of 63. The previous reading was 67.3. This seems to show a decelerating rate of economic growth, confirming 2nd QTR GDP estimates probably need to come down further.
On the China Outlook -- Three worrying signs from China. Massive drought has caused food prices to rise a reported 20% this month in Shanghai. Chinese authorities also allowed energy producers to bump prices in some regions as the country is facing the worst energy shortages in a decade. Finally, land prices, which are already down 20% for the year, could fall further as Chinese developers may be forced to write down assets.
What do you think China consuming up to 50 percent of key global commodities and materials such as cement, iron ore, steel and coal means? If you carry that out what will it mean for us? Competition for Global Natural Resources is going to cause the prices of commodities to sky rocket. And the Fed printing all of this money is only going to exacerbate that!!!
At a time when we need to be searching for stability, our national leaders are creating instability! We need to demand that they seek stability!
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