Government is not hurting the economy – service economy it’s hurting itself

The Washington Post article by Ezra Klein, “Government is hurting the economy – by spending too little“, brought to my attention by my friend Michael, attempts to convince us that the government spending is the key to the robust economy. The statistics seem to work in Mr. Klein’s favor. The government spends less, the economy dunks.

Source: Der Spiegel 5/11/12

We all know, the statistical data can be interpreted in dozen different ways. One obvious conclusion from this article is the increased dependence of the service economy on the government spending. Just take a look at the Der Spiegel graph showing the correlation between the national debt, manufacturing jobs, and foreign trade deficit. Loosing well-paying factory jobs leads to an increasingly unstable service economy.

Want a proof? Why would a real estate bubble affect the US economy in such a devastating way? No, it’s not because of the foreclosures but because of the lost construction jobs in both residential and commercial markets. Housebuilding is one of the last, true manufacturing niches that remain in the US. Of course, until, someone in China develops an inexpensive way to build modular homes and ship them with ready-to-assemble manuals.

The basic foundation of Mr. Klein’s article if simply misleading. How is the “government” founded? Government this and government that. Government would not exist without OUR money. So really, we are already spending the money and helping the economy, except, in the confiscatory manner.

Is the private sector without a fault? Of course not! shipping thousands of jobs abroad to raise profits for selected few, killed the internal balance of making and spending money by the middle class (if such still exist). Service economy will never be able to fill the gap left by the heavy industry.

US government to the rescue. The interconnected paths of the private and government spending is becoming more and more important to the economy. With the federal government spending our money in every possible way, no wonder private companies look up to the mighty uncle Sam to throw them a bone. Cash for clunkers anyone? Electric vehicle credits? Military contracts? Shovel-ready jobs? Everyone jumps on those government contracts.

So the real question is, how can US survive without the artificial government spending? The larger slice of the economy is overtaken by the government, the more risky the economy becomes. PIIGS countries anyone?
Unfortunately, once the government starts growing without a control, going back is almost impossible without an unpopular and devastating cuts. By the same token, there is a limit of taxation by the government. How much tax confiscation will take for people to revolt? Learning from Gerard Depardieu and Nicolas Sarkozy, about 75%.

Finally, I would read Mr. Klein’s post as a warning and a lesson. If we continue to depend on the government spending, let’s just nationalize the economy and stop pretending that our current system is a pure capitalistic ever-profit-giving golden goose. Perhaps Mr. Obama should put aside the popular replacement issues (healthcare, immigration) and concentrate on what’s the most important at the time – our wallets.

Manti Te’O: Top 10 list of new names

Story of the Notre Dame Fighting Irish linebacker Manti Te’O (MAN-tie TAY-oh) fake girlfriend, Lennay Kekua (leh-NAY kay-KOO-ah), took over the American media like an undocumented immigrant taking over roofing jobs in Chicago.  Of course, we don’t buy his explanation of a practical joke orchestrated by his “friend” Ronaiah Tuiasosopo (roan-EYE-ah Too-eee-ah-suh-SO-po).

Those pesky Hawaiians have their revenge for taking over Hawaii by the United States in 1893 and overthrowing Queen Liliʻuokalani, born Lydia Liliʻu Loloku Walania Wewehi Kamakaʻeha. Easy for you to pronounce it. Ha.

Obviously, Manti had high hopes for boosting his career. The near future will show if NFL turns a blind eye on this dent in his resume.

Oh, screw waiting, yes, the guy will make ton of money and he will laugh all the way to his gold plated ATM in his new Lamborghini. There.

In case Manti Te’O needs to change his name to accelerate his career ever further, here’s the top 10 list of new names.

1. Wrongtie Yell’O
2. Lanai Spray’O
3. Manshy Hands’O
4. Taipei Pa’O
5. Gentile Tov’O
6. Meatpie Beat’O
7. Turdfly Lam’O
8. Moontie YoYo
9. Mantie Thong’O
10. Bowtie Telltal’e

Gun debate served on a gun sandwich

After all the shootings and the outraged public, president Obama decided to take action signing 23 executive orders to curb gun violence. See the White House list below:

1. Issue a Presidential Memorandum to require federal agencies to make relevant data available to the federal background check system.

2. Address unnecessary legal barriers, particularly relating to the Health Insurance Portability and Accountability Act, that may prevent states from making information available to the background check system.

3. Improve incentives for states to share information with the background check system.

4. Direct the Attorney General to review categories of individuals prohibited from having a gun to make sure dangerous people are not slipping through the cracks.

5. Propose rulemaking to give law enforcement the ability to run a full background check on an individual before returning a seized gun.

6. Publish a letter from ATF to federally licensed gun dealers providing guidance on how to run background checks for private sellers.

7. Launch a national safe and responsible gun ownership campaign.

8. Review safety standards for gun locks and gun safes (Consumer Product Safety Commission).

9. Issue a Presidential Memorandum to require federal law enforcement to trace guns recovered in criminal investigations.

10. Release a DOJ report analyzing information on lost and stolen guns and make it widely available to law enforcement.

11. Nominate an ATF director.

12. Provide law enforcement, first responders, and school officials with proper training for active shooter situations.

13. Maximize enforcement efforts to prevent gun violence and prosecute gun crime.

14. Issue a Presidential Memorandum directing the Centers for Disease Control to research the causes and prevention of gun violence.

15. Direct the Attorney General to issue a report on the availability and most effective use of new gun safety technologies and challenge the private sector to develop innovative technologies.

16. Clarify that the Affordable Care Act does not prohibit doctors asking their patients about guns in their homes.

17. Release a letter to health care providers clarifying that no federal law prohibits them from reporting threats of violence to law enforcement authorities.

18. Provide incentives for schools to hire school resource officers.

19. Develop model emergency response plans for schools, houses of worship and institutions of higher education.

20. Release a letter to state health officials clarifying the scope of mental health services that Medicaid plans must cover.

21. Finalize regulations clarifying essential health benefits and parity requirements within ACA exchanges.

22. Commit to finalizing mental health parity regulations.

23. Launch a national dialogue led by Secretaries Sebelius and Duncan on mental health.

As responsible adults, we can all agree that those are very important changes dealing with the increasing gun violence. However, the core of the shootings and killings are committed by criminals. Yes South Side Chicago, that's you as well. 

With all those knee-jerk laws dealing with a long overdue problems, those executive orders are essentially worthless. 

Why? Because with 270,000,000 private weapons in the United States (www.gunpolicy.org), the real issue behind the gun violence is the criminal underground. And what criminals do? Yes, they don't care about any laws. 

Let me illustrate this UberNibbler style with the gun sandwich. Usually, the general population responds better to visual aids. So bite on this.

As you can see, the legal gun owners are the squeezed cheese and the crazies are a baloney. So you can issue as many executive orders or new laws as you want – they won’t solve the problem. BTW, Congress, get to work already. Enough with the party line this and party line that nonsense. We are the people and we demand real actions from the Congress and the States. Get to the bottom of the violence: poor areas, uneducated people, lack of jobs, lack of support, single-parent families. Heal the society and you will disarm the violence. 

Like what you see? Spread the sandwich. Where’s Jared Fogle when you need him?

Sandy Hook shooting and another gun debate

After the tragic shooting at the Sandy Hook Elementary school in Newtown, Connecticut, where 20 young children and 7 adults (6 teachers and killer’s mother), were killed by the gunman Adam Lanza, the gun control debate is taking over the mass media – yet again.

Sandy Hook is different.  The killer had some major mental issues recognized by his mother who, as reported recently, was trying to commit his to a mental institution.  Mother’s plans prompted Adam Lanza to kill his mother and the other 26 innocent people.

Unfortunately, the guns used in this horrific crime came from the mother’s firearm collection.  She was a legal and licensed gun owner in Connecticut.  However, the law, and apparently the common sense, couldn’t prevent this disturbed 20-year-old from using the guns to kill.

Could this tragedy be prevented?  Obviously, the mother knew about her son’s condition and totally ignored the fact that her son had access to firearms.  Could the law be changed to screen for households with mental patients?
If they had been register somewhere – yes.  Knowing the lack of true mental screening net in the United States, those laws are ineffective.

The other side of the coin is the subject of the taboo.  We can’t pretend that guns don’t exist.  Perhaps high school students should receive a hands on training in a ROTC or police-like class?  After seeing a deadly effect of the gun, safety training, and satisfied curiosity, most of the young people would just move on to another subject.

What can be done in the mean time?
On Roe & Roeper show, Chicago Police Superintendent Garry F. McCarthy, brought up a very interesting idea used in New York City already.  Since most shooting are still committed with the illegal guns,  registering each gun sale, would put pressure on the legal gun owners to follow the background check laws.  Even with private sales.  In other words, guns would be treated like cars or motorcycles with title changing hands in the open.

Besides the stringent laws, banning all assault rifles is again on the table.  Can well regulated militia use shotguns instead?  I’m sure that would be fine.

We all know that one law will never change.  It’s the right to posses a firearm.  I have a feeling that in a very near future, a handgun will become the only firearm available for self defense.  It’s time to put that .50 cal sniper rifle away.

121212 hurricane Sandy relief concert from Madison Square Garden

www.121212concert.org

If you haven’t noticed, my question about which country will offer some help to the victims of hurricane Sandy, was pretty much qualified as rhetorical.  Yes, rest of the World doesn’t give a shiznit about our people.  Considering, the United States jumps in to help with every major disaster around the globe,  the lack of interest is just ungrateful.

Here’s a grand idea.  The money extorted from the United States every year to fund the United Nations, $7.691 billion in 2010, should be redirected toward the relief efforts in New York and New Jersey.  After all, it’s our money, and we want some return on the investment.

So here we are.  12-12-12 concert  with an amazing group of celebrity stars performing on stage to raise funds to benefit the Robin Hood Relief Fund for the Sandy relief.  Yes, Americans are like onions.  Under the yellow skin, we’re all tearjerkers who help others.  Of course, with the exception of Pamela Anderson Lee and other unfortunate folks with Hepatitis C that would cause the yellowish skin.

Tony Soprano himself, James Gandolfini, is making the phone calls during the concert.  My favorites took the stage: Jon Stewart, Stephen Colbert, Chris Rock, John Bon Jovi, Jimmy Fallon, Jamie Foxx, Quentin Tarantino, and Steve Buscemi.  Although, Buscemi’s interest in rebuilding the Jersey Shore might be vested in a new boardwalk for his upcoming season of  HBO’s “Boardwalk Empire”.

The collection of the performers was quite impressive.  Among others: Bruce Springsteen, Alicia Keys, Eric Clapton, Kanye West, The Who, Billy Joel, Paul McCartney, and The Rolling Stones.  I have to admit, Alicia Keys was awesome, but Billy Joel just brought down the house.  The Piano Man still got it.

As a surprise bonus, it was great to see Michael Stipe from R.E.M. singing with Chris Martin from Coldplay.  You have to appreciate the skill of these guys.  Man, Lady Gaga looks bleak in comparison.

The real heroes of the hurricane were not forgotten.  Police, firefighters, emergency medics, doctors, nurses, sanitation workers, and many more that assisted thousands of residents before and after the storm, were recognized by all.  I officially change my position on privatization of the fire stations, keep them public, we need those guys to stay.

Unfortunately, the Atlantic City mogul was no show, still recovering from the hurricane Sandy damaged comb over.  Mirror mirror, on the wall, where’s Donnie Trump after all???

Above all, it’s a righteous cause and one would hope for a great response.

Revolutionary ideas to deal with the fiscal cliff

Hanukkah, Kwanzaa and Christmas are upon us, but instead of joyous atmosphere, Americans are faced with an infamous fiscal cliff.  How steep is the fiscal cliff?  About.com explains the fiscal cliff in a short and sweet manner.  Read on, if you dare!

Even though the media blankets us with the daily serving of panic-ridden fiscal cliff news, the citizens outrage is not visible.  How do we make the American people to care more about the cliff?

Public relations and proper advertisement are the key, hence the top 8 list of the fiscal cliff substitute names:

8. Pistol Biff - Do you feel lucky? Lets knock off that tax rate already.
7. Fiasco Tiff - Can't we just get along?  No, we can't.
6. Dismal Whiff - Do you smell those disappearing tax cuts?
5. Facial Ziff - Shave off some of that spending before it gets hairy.
4. Distal Riff - Hands off approach to taxes, over and over again.
3. Crystal Reef - Clear view of the mounting debt problems.
2. Frontal sniff - Yes, it's definitely a rotten tax increase deal.
1. Fiscal Queef - Budget agreement?  It's all in the air.

Another idea is to push the Clifford aka Cliff to the top of the newborn names rankings.  For the last couple of years, Cliff has been doing poorly.  See the stats.  Using the fluffy, Clifford the Big Red Dog, to ease the name shock among the populous, did not work out too well.  Kids love the name; adults, not so much.

Stats by ssa.gov

It doesn't matter which side has better ideas to avoid the fiscal cliff.  On January 1st, 2012, all Americans will have less money in their pockets.  And that's that.

NASA had spoken - no end of the World in 2012

To put everyone at ease, NASA released a video to let us know that there will be no end of the World on December 21st, 2012.  In short, Mayan calendar just resets and the party goes on.  There.

If you want to track same asteroids, visit NASA's asteroid watch website.