Here’s some news to help ease you into next week.
International Developments
❖ Presidents Joseph Kabila (Democratic Republic of the Congo), Yoweri Kaguta Museveni (Uganda), Mwai Kibaki (Kenya), and Yahmi Nassoro Dovutwa (Tanzania) “issued a statement calling on M23 to ‘stop all war activities and withdraw from Goma’, DR-Congo and ‘stop talk of overthrowing an elected government’.” Much fear that children are being forced to become soldiers.
❖ Egyptian President Mohammed Mursi is doing a bit of back-pedaling. Per his office, “the decree giving him sweeping new powers is temporary and not intended to concentrate power in his hands.” Update: “A Muslim Brotherhood member was killed and 60 people were injured on Sunday” in Damanhour.
❖ “Yassar Arafat’s body to be exhumed for cause of death tests”. Traces of polonium-210 were reportedly found on his clothing after his death, but those tests were inconclusive.
❖ “Syrian rebels captured a helicopter base just outside Damascus” today. Fighting in Aleppo has destroyed many schools, forcing children into the streets or local mosques which make space available for make-shift classes.
❖ Both the Spanish political parties CiU (center-right) and the ERC (left-wing) in Catalonia are nationalists “keen to hold a referendum on whether the region should break away from the rest of Spain.” Partial results suggest 50 seats in the latest elections for the CiU, not enough for an absolute majority, so a referendum on separatism seems unlikely at the moment.
International Finance
❖ European bailout funds are headed for Spain on Dec 15th. In exchange, “Spain’s four nationalised banks” will be expected to lay off 8,000 employees. Chart showing that all Spanish banks employed around 24,000 in 2011, so a large dent. As the article continues: “Surely this will fix Spain.”
❖ Update on the reported “long war” brewing between HP and the British firm Autonomy which HP acquired but in retrospect wishes it hadn’t.
Money Matters USA
❖ We don’t need “balance” in the economy. We need “redress” and we need to demand it. Let us have: “the most generous” social safety net of all; no cuts for the poor and middle class; sacrifices from those who’ve benefited “so much from the rigged political system”. No “Grand Bargain”. Just go over the “Fiscal Cliff” if necessary, then fight to restore middle class tax cuts, etc.
❖ Blackstone, owner of the Waldorf Astoria Hotel and the Weather Channel among many other investments, is now snapping up houses in the Sacramento, CA area, “a direct result of the thousands of houses left vacant by foreclosures”.
❖ Seems there are definite “boomlet” signs in Detroit, including increasing competition for commercial rental spaces and for apartments as well. Said one life-long resident, “I grew up on the east side of Detroit. I have not seen this much development and growth in my entire life.”
Politics USA
❖ Finally! Illinois Democratic Senator Dick Durbin on the teevee today: “Social Security does not add one penny to the deficit. Not a penny.” Medicare, Durbin continued, will have to be adjusted but that can be accomplished “without harming beneficiaries.” Remains to be seen, but nice to hear the truth spoken about Social Security.
❖ Sen. John McCain (R-AZ), also on the teevee today, is opposed to raising tax rates on the wealthy since that would hurt our fragile economy (ignoring how the Bush tax cuts contributed to it), ok with closing “a lot of loopholes” (charitable giving, home mortgage deductions), and is eyeing what’s ours: “obviously, we’re gonna have to look at entitlement reform.”
❖ Sen. Lindsey Graham (R-SC), on another teevee program, is opposed to raising tax rates, too, but wants to cap deductions. “But to do this, I just don’t want to promise the spending cuts. I want entitlement reforms.” And you know whose entitlements he means.
❖ Could it be Fl Gov. Rick Scott (R) knows Obamacare will save the state $100 million/year, or that FL has “the third-highest percentage of uninsured children in the nation”, or that FL hospitals desperately need Medicaid funds? Perhaps, but what’s perhaps most intriguing is that Scott “finally seems willing to stand up to the big-money puppet masters”, the Koch brothers.
❖ FL, GA, SC, NC and VA–the five contiguous Southern states along the Atlantic coastline–hold promise for Democrats. Black populations are growing, the small Hispanic population is growing, and “less-conservative outsiders [are] attracted to popular coastal areas.”
❖ “In the last four years, the number of militia groups in the United States has grown [from 512 in 2009] to more than 1,200″ in 2011. Interview with a Supreme Commander of one such group in NC.
Education Directions
❖ The US Education Department to PA: You may not use “more lenient criteria” in evaluating charter schools; “they must be assessed by the same standard as traditional schools.” What’s PA gonna do? Use both standards, so there! (59% of PA’s charter schools met the federal standard using “more lenient criteria”, while 37% would have met it using the same criteria as used for public schools.)
❖ Public school teachers must pass the Praxis exam to get their jobs. Seems that some teachers in AR, MS and TN having been paying one Clarence Mumford Sr. $1500 – $3000 “to send one of his test ringers with fake identification” to take the test for them. This has been going on for 15 years.
Heads Up!
❖ Unsure if Obama would win a second term, “his administration accelerated work in the weeks before the election to develop explicit rules for the targeted killing of terrorists by unmanned drones, so that a new president would inherit clear standards and procedures”. Seems there’s not agreement on whether drone strikes “should be a measure of last resort” or “a more flexible tool”. Under Obama there have been 300+ drone strikes, with 2500 deaths. Update: The ACLU and Code Pink have strong reactions to this news, such as: “The terms . . . being used by these officials are undefined, malleable and without definition” (ACLU), “That they are trying to write the rules for something that is illegal is disgusting” (Code Pink).
❖ “Welcome to America’s 10 Worst Immigration Detention Centers”, with interactive map.
Planet Earth News
❖ US Agriculture Secretary Tom Vilsack strikes again. Food pantries are hurting while farmers are “selling their crops overseas” at record high prices due to the drought and higher demand. Of the corn crop, 40% goes to ethanol, 40% to feed animals and 20% for consumers to eat. In August the UN asked the US to stop using so much corn for biofuels given world-wide hunger. Vilsack rejected the notion.
Latin America
❖ Some of former Brazilian President Luiz Inacio Lula da Silva’s aides were tried and found guilty of corruption, followed by a second wave of investigations and arrests for bribery. Current President Dilma Rousseff is “moving quickly” and has “ordered the dismissal . . . of government officials alleged involved” in the bribery.
Mixed Bag
❖ Maine is first among the US states to create a Truth and Reconciliation Commission “to help those affected by the forced relocation of Native American children into white homes during the 20th century.” The federally funded Indian Adoption Project was in operation from 1958-1967.
❖ Awesome stuff: “The structure of the universe and the laws that govern its growth may be more similar than previously thought to the structure and growth of the human brain and other complex networks, such as the Internet or a social network . . ..” Of course, it’s the human brain doing all this observation, modeling, etc.
Break Time
❖ Iguazu Falls, and by helicopter, too.





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Regarding Catalonia. . .
Fatster, here’s a link predating yours slightly (before election results were known). It includes some motives behind secession.
http://www.telegraph.co.uk/news/worldnews/europe/spain/9699857/Catalonia-prepares-itself-for-a-vote-against-Spain.html
Apparently Catalonia (which includes Barcelona) is the wealthiest region in Spain and the locals see a net outflow of tax revenues to the nat’l gov’t. So the motive would seem to be economic rather than cultural.
But I’m not entirely comfortable with that take considering the mass demonstration recently including 1.5 million Catalan flag wavers. There was more than a loose Euro here and there. Also Spain seems to be highly balkanized anyway considering the history with the Basque minority, various regional official languages, and regional semi-autonomy common in Spain. It’s not like France at all, which banned “official” languages other than French in 1958 and which was tougher upon its own Basque minority.
It’ll be interesting to see where this goes, but the notion of opening pandora’s box occurs to me. Catalonia seceeding seems unthinkable, but a lot of sectarian trouble could be on its way. Maybe it’s intended only as a political lever to get more money from the central gov’t, but. . .
Amazing what an economic crisis will produce, huh, maa8722? In Spain it’s a possibility (however remote it seems, as you point out) of secession, in Greece it’s that neo-Nazi Golden Dawn Party, etc. And I forgot to include the Basque ETA’s request to France and Spain for “talks”. Spain has already rejected that possibility. Lots of turmoil–and more to come, apparently, since TPTB seem to have no inclination to abide by The Law of Holes.
❖ Awesome stuff: “The structure of the universe and the laws that govern its growth may be more similar than previously thought
chuckle. that’s pretty big, but not as big as the egos of the scientists making these pronouncements.
Read more at: http://phys.org/news/2012-11-human-brain-internet-cosmology-similar.html#jCp
hi, grey cup tonight, hope you’re all watching.
I hadn’t heard of the Grey Cup before, mafr, but I did look it up. Here’s hoping your team wins. Many thanks and have a great evening!
Weather forecast for Mars: Warmer, with a dusting of dust.
Hi, fatster and friends, I’m an appreciative lurker at the Roundup.
Durbin voted for Bowles-Simpson and has never waivered from that position. He hasn’t signed the Sanders pledge not to cut SS and Medicare, and this month people protesting cuts were arrested at his Chicago office (h/t TomThumb).
Bowles-Simpson SS benefit cuts
45 degrees, huh! Now, that’s a heat wave. I tried to find a good version, and here’s the wonderful Ella Fitzgerald, though it’s audio only. (They had the Marilyn Monroe one, but not good quality.)
Anyway, this is for you, allan, with many thanks.
http://www.youtube.com/watch?v=nOXjRY6RQ6c
Hi, marym in IL and thanks so much for joining in. He did say it, and that’s what I hit on. Don’t know if we can hold him to it, but we can sure remind him that he told the truth about Social Security today. And thanks so much for the link.
Saying it doesn’t contribute to the deficit can just mean address SS as part of a separate process. That’s where we need to pay attention, because that’s where they’ll use the projected shortfall as the excuse for cuts. That’s where we need to demand lifting the payroll cap, and taxing all forms of income, rather than cutting benefits
And speaking of extreme weather: PM aghast as storms lash Britain
Yes, marym in IL! What’s ahead is definitely going to take a lot of energy and commitment–to say nothing of being ever-alert to all the maneuvering that’ll no doubt be going on. I hope you’ll continue to visit with us. The feedback is always appreciated and the knowledge and understanding contributed is valuable to all.
Just awful, allan. The UN’s recent report doesn’t seem to have caused much of a stir among the world’s “leaders”, either. Very grim stuff.
General John Allen is the General winning the war in Afghanistan. The General wants us to continue winning forever and ever.
The Generals may not win any wars, but they are in the One Percent. General Allen and the other Generals get a gourmet chef, an executive jet, a personal valet, and sometime mistresses. He also has had his morale raised by frequent laisoning with sexy Jill Kelley. Who has time to win a war, when you are sending thousands of pages of e-mails to admiring women.
Allen took Jill on multiple trips in his private jet. Allen probably was at the ceremony where Jill received a medal from the Joint Chiefs of Staff, for outstanding laisoning. Petraeus pinned the medal on her chest. It is not known if there is video of the ceremony.
Our guiding lights…really scary. What is the “romance,” personally and generally, with the military? Why would one choose to live with a warrior?
As the article continues: “Surely this will fix Spain.”
The beatings will continue until morale improves.
~
Good question.
I left out the link to the NY Times article.
The author is incorrect about L-E-T, the Pakistan terror group. L-E-T is controlled by the Pakistan secret Police, ISI. The Mumbai terror attack was a False Flag Op planned and directed by ISI. CIA spy David Headley assisted the attack. Telecommunication equipment, an early SKYPE was provided to ISI, by the US. This allowed ISI and Headley, to give orders to the commandoes in real time.
Good morning pups. There was a bit of happy news in our local paper this morning. It appears that taken as a group Quebecers are currently the happiest people in the world, even happier than the Danes! This despite our having the highest taxes in the world (except the Danes, which is maybe why we are happier). What is most interesting about the survey is that rich people are happier here than they are elsewhere as well, despite the high taxes (and high level of social services). What is also interesting is that the level of real per capita income is lower here than in a lot of other places where people aren’t as happy, which just goes to show that money can’t buy you everything.
Anecdotally, I’ve noticed on the streets in my neighborhood and Mile-End, which is just next door that the young people with children seem extremely satisfied with their lives, despite living in tiny apartments and few parks for their kids to play in. The street life is alive and people chat with each other. A different and better way of living. Must be off to my coffee shop shortly to participate.
Be careful what you wish for.
Lifting the payroll cap has been done to benefit the rich.
The payroll tax cap remained $3000 from 1937 to 1951.
Low-wage earners and high-wage earners were getting the same size benerfit checks and the well-off didn’t think that was fair. They wanted to maintain their income advantage throughout their retirement.
From an interesting collaboration of the Guardian, the BBC’s Panorama and the Washington-based International Consortium of Investigative Journalists (ICIJ):
“British woman living on goat-tramped Caribbean outcropping listed as director for more than 1,200 companies.”
Not the “Leak To Us” link and map of “Our Journalists.”
You could probably adjust the payout for a higher cap but not to give the higher taxes away entirely. In fact, that could be a selling point.
The plans being proposed lift the cap and also continue to tie benefits to contributions. This is how people expect Social Security to work. I’m not sure what your concern is.
Here’s a summary of Sen. Begich’s plan.
There was also a plan proposed recently by some in the House. I don’t have a link, but this plan also kept the tie between benefits and contributions. As bluedot @12 said, I think there’s room for adjusting the maximum and minimum payouts in a way that would be actuarily sound to maintain both solvency and a fair balance of contributions/benefits.
Yes.
You could change the formula. You could also increase the payroll tax rate from 10.4% (hasn’t been raised in over 20 years). All are possible (with an act of Congress), but just raising the cap alone isn’t the magic bullet. We’ve been raising the cap yearly for the last 40 years and it hasn’t fixed the problem.
Apparently Quebecers, like much of Europe, live their lives on the streets. In the U.S. a vast majority of the people live their lives in their private vehicles or on their couches.
Reid and Durbin are misdirecting folks, thereby dividing the opposition.
Reid says we are not dealing with SS now. Then Durbin parrots him. Impact? In the confusion, half of the hopeful folks drop their resistance to cuts and turn their attention to their Xmas lists.
It is a smaller version of the strategy of telling folks that ‘those over 55 should not worry.’ That eliminates the voting older people as your opposition. Even though the chained CPI would affect all age groups, meaning they lied, their lie created less opposition for them when they go to make cuts.
Massacio is correct to call them liars and cheats and to call all of us foolish enough to hope their lies are true, naifs.
History started last week, didn’t it?/s
According to your link:
As I said in #18, raise the cap and give the rich even bigger retirement checks.
If people perceive that as a fair deal, which I believe it can be, and it keeps the program solvent, and it also provides fair benefits to people of lower income, I don’t see why that’s a problem.
Other solutions, like raising the payroll tax rate, or reducing benefits harm people of lower income. That’s more my idea of injustice than having people who can afford to pay more, also get some more in return.
edit: this is a reply to alant1tx @ 26
Unless the folks at Social Security Administration change the PIA formula to make it less progressive, people who pay more in FICA will probably never be awash in Social Security benefits as you imply. Why do you keep promoting falsehoods about SS?
In your past comments to me, you have misrepresented the effect of the chained CPI, saying that it did not constitute a significant benefit cut, despite my efforts to show you that it represented billions in cuts to SS benefits. It appears that you are doing the same here, with Begich’s CPI-E formula. Stop it. Cut it out.
Begich is suggesting a new CPI-E formula which is more generous, and his inflation formula would represent significant increases in benefits for lower and middle income recipients. The CPI-E formula is an improvement because it includes increases in expenses specifically related to the elderly as a group, like increases in the cost of healthcare. As such millions of senior citizens could start to receive SS benefits which keep pace with the true cost of inflation.
I guess so. It seems like it would make things more progressive until you factor in the benefits check at the other end.
The average monthly Social Security benefit for a retired worker was about $1,230 at the beginning of 2012.
That’s an average of low-wage earners and people making at or over the cap who’s benefit is based on $110k. The low wage earners might get a check of $800, while those near the cap might get $1600. If you double the cap, low wage earners are still going to get a benefit of $800 based on what they paid in, but those at the new cap will get $3200 monthly checks.
I don’t remember specific comments to you, but “promoting falsehoods” could be a matter of perspective. If I implied using chained CPI “did not constitute a significant benefit cut”, I probably said it was a reduction in an “increase”.
Preferring to call Chained CPI a “reduction in the increase cost of living allowance” is less a falsehood than calling it a “cut”.
BTW, I didn’t make any comments about CPI in this thread before now.
The formula for the PIA is progressive. I don’t see how, using the current PIA, you would get double the benefits from doubling the amount of the FICA CAP. I do not understand the fine points of how they arrived at the bend points, but they are convincing, and would never lead to a one-for-one increase in benefits:
http://www.socialsecurity.gov/OACT/COLA/piaformula.html
I’d have to see actual proposals with actual numbers regarding revenue (does it only lift or totally remove the cap, subject other informs income to the tax), and any changes to the benefits formula, including high and low end, and cost of living adjustments, and projected long-term solvency, before I would opine on whatever will be the maximum and minimum benefits.
However, I’m still not clear on the nature of your concern. If a proposal was to increase taxes for higher earners without increasing their benefits, wouldn’t you be likely to think that was unfair to rich people? But a proposal to increase benefits along with contributions seems worrisome to you as well. As I said, proposals to decrease benefits or increase taxes on lower earners seem much more unfair, and much more harmful.
Social Security benefits are never increased. They keep their original value by keeping pace with inflation through COLAs using a CPI formula. Since SS benefits are never increased, but only maintained at their designated value through COLA adjustments, reducing the COLA adjustments, mean that the value is decreased from its original value. A benefit which is deliberately reduced in value, is “cut”.
When workers get a cost of living adjustment to their salaries, they are not getting a raise; they are getting an adjustment to keep their “salary” current with its original value. But if you are from “management” you will refer to it as a raise.
Which side are you on?
Sigh, and shades of Santayana, TomThumb. Thanks, too!
White gunmen destroy a thriving black town by shooting people and burning all the buildings, then taking all of the land after the residents (who owned their homes) flee in fear for their lives, Florida 1923
website, with interviews and pictures
rosewood Florida
http://www.virtualrosewood.com
Obama appears to have mispoken when he said he was ending the war in Afghanistan.
His defence minister recently said that he was in the process of determining how many soldiers will stay in Afghanistan after the withdrawal date.
There is much money to be made there, many secret bank accounts are being filled with American money, also the drug trade is thriving, so till people demand an end, it won’t end.
blackest, evil farce, perpetrated in plain sight.
❖ European bailout funds are headed for Spain on Dec 15th. In exchange, “Spain’s four nationalised banks” will be expected to lay off 8,000 employees. Chart showing that all Spanish banks employed around 24,000 in 2011, so a large dent. As the article continues: “Surely this will fix Spain.”
society and its economy are like a plane, wings are held on by rivets, the rivets are the workers, as they continue to remove the rivets, they will reach a point where the wings will fall off.
I agree with you. My “doubling” was for affect, and easy math. I think the last bend point is 15%, so definately not a 1-for-1.
As far as: “they are getting an adjustment to keep their “salary” current with its original value”
Partisans fall on all sides, but from Huff Po:
http://www.huffingtonpost.com/2012/11/09/chained-cpi-fiscal-cliff_n_2104274.html
So to avoid promoting falsehoods, CPI cost of living has a 3% “bonus” added in, while Chained CPI would keep their “salary” current with its original value.
Echoing Tom Thumb, whose side are these “analysts” on? From your link:
But it’s not as if those steak eating seniors can just switch to chicken cordon bleu, and it’s a wash. This proposed Chained CPI is a race to the bottom, just one more plan to harm the most vulnerable.
Actually, yes it is. That’s the point. You can exaggerate “beef and chicken” to “steak and chicken cordon bleu”, but the concept is still true. If a winter storm takes out the entire orange crop people don’t have to buy $40 oranges. They buy something they can afford.
Here’s a rather even-handed analysis.
http://momentoftruthproject.org/publications/measuring-case-chained-cpi
Moment of Truth is even-handed? Yup, Bowles, Simpson, and friends. Always looking out for the little guy.
http://momentoftruthproject.org/about-us/advisory-board
(do I need a snark tag?)
Even your links disagree with you: (This is from the CBO from the HuffPo article you referenced)
The second link you referenced was to the Pete Peterson funded Deficit Hysteria Massacre:
I had to use latex gloves to open it: But they were honest enough to admit that their measure would strip out 112 billion dollars from Social Security benefits between 2012 and 2021.
The basic lie you are relying on to sell your cuts, is that the current CPI formula overstates inflation. This is just not accurate.
The second lie that you are relying on is the premise that after you cut Social Security benefits, that seniors can just buy a substitute food for the foods they now cannot afford to buy. By your logic we are in a race to the bottom where we darken hot water and call it coffee.
I noticed that you redouble your efforts when you are wrong. Santayana thought that this was the true sign of a ‘fanatic’. Gawd. posting a link to Bowles-Simpson “momentoftruth”!!
On a positive note, I will say that I have sharpened my knowledge of Social Security as a result of your willingness to shill deficit-debt-anti-Social-Security lies.
The CPI-E which Begich is offering legislation to apply to Social Security would increase benefits for low and middle-income recipients about 4.5%. Just think of all of the groceries a person could buy over the course of a year with that money. Why instead of hamburger helper, a person could buy real hamburger, something with real protein in it. Or, they could buy whole wheat loaves instead of the zero nutrition white bread. People could lead healthier lives and might need fewer trips to the doctor. Wouldn’t that be swell?
These analysts do not agree with your analysts about the impact of the reduced chained CPI:
Dean Baker and Rosnick looked at the impact of the proposed CPI. They found that the current CPI measure shorts benefits by about .5 % already. In addition, the authors found that current retirees and near retirees have already had their benefits cut through raising the retirement age to 66 and later to 67. In addition, current workers have already been paying higher payroll taxes for fewer future SS benefits. Current and future retirees also face future economic conditions in which they will rely on SS for a greater and greater share of their retirement income.
Your assertions are basically errors in logic. But you are not alone. Elmendorf from the CBO shares this Spockian disspassionate, bloodless point of view too. He thinks that if health care procedures become more effective, we should decrease the CPI to reflect that sick people are getting better healthcare for the same money. Sheesh.
Just send seniors out in the woods with a Medicare card and a box of matches, will ya???/s
Great analogy, mafr.
And @35–Rosewood. I grew up in the Deep South, though removed from Rosewood geographically, and removed from those events by a generation–and was horrified to learn about Rosewood as a young adult, and stunned that the history of it had been so effectively suppressed. Thnx so much for the reminder.
And . . . Good Morning! Is it a Grey one for you?
My apologies to marym in IL and TomThumb.
On a positive note, as TT has, I have sharpened my knowledge of Social Security as a result of SLASH/CUT/GUT/END SS AS WE KNOW IT running around with hair on fire commenters.
I guess I don’t know enough to have impenetrable prejudice and bias against an issue or author though. I just read up on an issue and decide for myself.
MOT was a reference someone else here directed me to to try and set me straight for something else I had messed up. Hard to win.
That airplane/rivets was borrowed by me from Carl Sagan who was describing ecosystems, and extinctions of species, the species being the rivets of course.
What is there that you aren’t familiar with Fatster? you should be a guest on “big bang theory”
My team (winnipeg blue bombers) was not in the game, but it was fun to watch, always a good game, thanks for asking.
houston North city Calgary’s “Stampeders” got pummeled, so it was fun to watch.
OK, I apologize too. Nice place fatster has here, don’t want to snark it up too much. Moment of Truth is definitely a good source for knowing what Bowles, Simpson, Peterson, and the rest of the establishment elite is saying. It is not a good source for determining whether decreasing the deficit is as important as they say it is, nor whether penalizing the sick, the poor, and the elderly, who did not cause the deficit, is the only way the richest and most powerful country in the history of countries can address it.
Oh, this is a great place to learn all kinds of things, alan1tx. Good to know you’re taking advantage of it, too. :)
Thnx, marym in IL. Lively discussion this morning, the best kind.
I’ve just been around a long time, mafr, and have enormous curiosity (which, of course, gets me in tight spots now and again, but I’ve managed nonetheless).
Lol. I just found where it was suggested I look up MOT.
Apparently he was Anti- and I didn’t even realize it. Egg on my face.
You’re a good researcher, alan1tx. Just keep movin’ forward. We’ve all eaten our share of those “omelets”, ya know–and in my case, no doubt more to come. :) :) :)
Please see here.
O that Dean Baker, calling out the CBO for overstating the deficits:
http://www.huffingtonpost.com/dean-baker/if-the-budget-debate-had_b_2192589.html
If the elites figured out a way to claim the sky is green and grass is blue and that’s why we need to cut SS and Medicare, they’s do it.