Hiding from the “D” word

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When exactly does our “Great Recession” become a “depression?” While I know there are certain indicators to track and measure this economic stuff, I have been wondering for some time if we are just lying to ourselves to avoid using the “D” word. The sub-prime mortgage crisis began more than four years ago, followed by the bailouts on Wall Street, and more recently the deepening financial crisis across much of Europe has caused further economic dismay.

So…I ask again, when does our Great Recession become a depression? We may “officially” have 8.2% unemployment, but everyone knows that is a totally bogus number that does not factor in underemployment or those who have given up the job search. Recent data puts underemployment at over 20% in some areas of the country and in double-digits in many places. Globally, in 2011 under employment was pegged at 18%. Data from February, 2012 showed that more than 87 million Americans were no longer looking for work! That is an astonishing number.

Sure, there are pockets of relative prosperity, but that was true in the 1930s too. Economic downturns are not necessarily universal in their application of pain and suffering – just ask a few Okies from the 1930s or my fellow Michiganders during the 2000-2010 time period.  So…once again I ask this basic question – when do we start being honest with ourselves and call it a depression and not a recession?

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When did ending subsides for big oil start being called a tax increase?

Even dubya doesn’t get it.

A month or two ago I wrote my Congressman, Republican Mike Rogers about ending subsidies for oil and gas companies. Today, I received a response in the mail. His letter was very cordial and polite, but the logic of his argument is simply laughable.

“Like you, I am concerned with the high price of oil and gasoline, and I believe that the oil industry must be closely monitored for anti-trust violations. That said, I have serious concerns with raising taxes on any employers, especially now when Americans are struggling to pay for gasoline.” (underline emphasis added)

SOURCE: Letter from Mike Rogers dated July 10, 2012

Are you freakin’ kidding me? Eliminating subsidies is raising taxes? Who the hell came up with that logic? Since when did eliminating a subside become a tax increase? Sir, these idiotic subsides cost all of us from $10-52 billion per year. That’s money that could be put too much better use funding renewable energy, feeding the malnourished, carrying for the poor and unemployed, or at the very least helping homeless veterans.

“In the United States, credible estimates of annual fossil fuel subsidies range from $10 billion to $52 billion annually, while even efforts to remove small portions of those subsidies have been defeated in Congress, as shown in the graphic below.  Download your own pdf copy here.” SOURCE: priceofoil.org

Meanwhile, Congressman, big oil reaps larger and larger profits at our expense. According to priceofoil.org,

“ the top five oil companies alone have made almost a trillion dollars in profit in the last decade.“ 

So, I have no idea where Congressman Rogers gets the idea that ending subsides amounts to a tax increase. My guess is some anal-retentive GOP think tank funded by big oil came up with that bilge of an argument. All I know is it is one of the most illogical things I have ever heard, let alone read.

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“Billion dollar babies” – will they ever learn?

Large financial institutions who were either shut down or recipients of at least one billion dollars in bailouts in 2008-2009 (a.k.a billion dollar babies):

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• Lehman Brothers
• Merrill Lynch
• AIG
• Goldman Sachs
• Citibank
• RBS
• Bank of America
• Wells Fargo
• Morgan Stanley
• Bank of New York/Mellon
• Regions Financial
• SunTrust Banks
• Northern Trust
• U.S. Bancorp
• BB&T
• Valley National (NJ)
• State Street Bank
• Huntington Bancshares
• Comerica
• Zions
• Capital One
• Marshall & Isley
• Webster Financial
• CIT Group
• Fifth Third
• PNC
• American Express
• The Hartford

Eurozone financial problems follow in 2009 to the present at the following:

• Irish banks
• Icelandic banks
• Portuguese banks
• Greek banks
• Spanish banks
• Italian banks

and now, the moneychangers in New York and London have start playing dangerous games yet again, in 2012:

• JP Morgan Chase
• Barclays

Exactly, when will the billion dollar babies ever learn? And when will we stop letting them get away with it? Apparently, as George Santayana said:

“Those who cannot learn from history are doomed to repeat it.”

Sure seems like a wasteful and painful way to learn lessons.

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More disappearing acts to depart soon

Here are eleven more items that I believe will all but disappear within the next decade – some a little more controversial than the previous list:

• The Euro – good idea, but not everyone came to the party with the same idea in mind.
• Gasoline only cars – there will still be a plethora of gasoline only cars left over, but within a decade all new cars will be flex-fuel, hybrid electric, diesel, or electric.
• Paper business cards – instead we will have some type of RFID business cards that can be read by cell phones.
• Paper maps – as a map collector this one makes me sad, but I sure am holding on to the ones I have.
• Printed lodging directories
• Mail boxes – to save money, the post office will require everyone to maintain a post office box instead.
• Super-sized cola drinks – what New York City starts will be followed as obesity costs rise.
• Training wheels – as studies start to show they may hinder learning to ride more than they help, off they will go.
• Three-car or more garages – long overdue as starter castles start reflecting reality. Perhaps a separate bicycle door instead?
• Facebook – keep changing things arbitrarily without telling people ahead of time and it will soon go the way of myspace and digg. Hope you didn’t buy the stock.
• The BCS – this cannot come soon enough. Bring on playoffs.

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A few predictions

Making predictions on future events and trends can be risky, as more often than not you are likely to be wrong. But, there are a few items I think are worth noting. So here goes:

• Brazil, not India will be the next superpower after China and the first in the Southern Hemisphere.
• Sadly, I think parts of Europe may be headed for possible open warfare – not over political ideologies, but between the haves and the have-nots. If the USA is not careful, it may be going down that same path.
• The Basque and Catalonia regions of Spain will successfully separate into independent nations as a result of the economic upheaval.
• Canadian banks will become among the world’s largest and most influential as they avoided the pitfalls of the housing bubble.
• The Republican Party will split in two within five years.
• Poland will become an economic powerhouse as the link between Germany and Russia.
• America’s first woman President will be elected in 2016.

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A tale of two stores

For the most part, I will let the following two photographs do the talking. The first picture is from a local Meijer’s store. The second is from the local Kroger store. Both have recently completed major remodeling and renovation projects. From the photos, it is rather obvious that one store cares more about exercise, fitness, good public health, and alternative transportation options. The other…well, I will leave that determination to you. As they say, “a picture is worth a thousand words.”

Bicycle parking at Meijer

Bicycle parking at Kroger

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Counterintuitive retailing

For the past couple of years, I have been attempting to get the local Kohl’s department store to install a few bicycle racks for customers and employees who prefer active transportation. To date I have been unsuccessful. However, in the ultimate irony, the store installed two cigarette disposal containers instead. Is that really their intent – to tacitly support an unhealthy habit instead of promoting fitness, exercise, and good health? I doubt it, but their actions speak differently.

Sadly, Kohl’s is not alone. One can walk into numerous area businesses and see the same unfortunate priority. Even three national retailers who sell bicycles here, Dick’s Sporting Goods, Wal-Mart, and Toys R Us, do not even have bicycle parking at their stores. That is plain ridiculous. It seems counterintuitive to long-term customer health and their own long-term business prosperity.

It is long past time that our society places greater emphasis on good health, fitness, and exercise and stops giving even tacit support to unhealthy habits that cost all of us dearly. Please note, these thoughts are coming from a former cigarette smoker – me. For businesses, promoting healthy activities reduces their insurance costs, sick time, and employee absence. Those benefits themselves strongly outweigh the costs of installing a simple bicycle rack or two. The sooner our society starts to get its collective priorities in order, the sooner our nation’s general health and welfare will begin to improve.

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Not one penny more!

Until the current conservative-led government of Israel starts treating all of its citizens equally, stops building settlements in disputed areas, stops imposing its will and deadly force on the adjacent Palestinian territories, and agrees to recognize the Palestinian Authority as a legitimate and sovereign nation, then the United States should immediately cease all foreign aid to them. While I appreciate the Obama administration’s efforts to rein in Israel compared to the prior Dubya clowns, apparently talk alone does not garner results with the Netanyahu government.

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In 2010, Israel received nearly $3.2 billion in aid from the United States, the vast majority of which was military assistance. In 2011, aid to Israel equaled the equivalent of $8.2 million per day while at the same time, the amount of assistance per day that went to the Palestinian Authority was zero, nothing, nada.

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Screw political fallout (even in an election year), this is simply the right thing to do. If the United States is going to preach the democracy and freedom high road, then we damn well better be ready to follow through. The following weblink provides more shocking data about actions that have been taken/allowed by the Israeli government regarding political prisoners and detainees, demolished homes, and illegal settlements.

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The Israeli government should not be able to operate freely as it has been without any repercussions for bad choices. The only exception to a wholesale cutting off of all foreign aid to Israel would be humanitarian aid in response to a disaster.

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I am not suggesting that Israel give up its right to exist or its right to defend itself. What I do have a problem with are arbitrary and irresponsible actions being taken by more conservative factions there. Palestinian residents of Israel should have the same rights and opportunities as the rest of the populace. In one recent example, the Israeli Supreme Court narrowly upheld a law banning Palestinians from living with their Israeli spouses.

So often Americans hear rom the media that Israel is the only true democracy in the Middle East. That may be so in theory, but until Israel’s actions start resembling the rhetoric, the United States should withhold further foreign aid.

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Ten great reasons to shop at local businesses

You may have seen the Small Business Saturday advertisements recently. November 26th, the Saturday after Thanksgiving is is the second annual “Small Business Saturday.” Even though a huge company (American Express) is the primary  sponsor, I find the goal to be admirable and commendable. Shopping at local businesses is an important way to strengthen your community’s economy. Below is a list of ten reasons why it is smart and important to shop local businesses from Greater Lansing’s Capital Area Local First organization.

• “Unique businesses are in integral part of our distinctive character.
• Local business owners invest in the community.
• Non-profits receive greater support from local business owners than from non-local.
• Environmental impact is reduced (local businesses make more local purchases requiring less transportation and usually set up shop in town centers rather than on the fringe. This generally means contributing less to sprawl, congestion, habitat loss, and pollution.).
• Competition and diversity leads to more consumer choices.
• Most new jobs are provided by local businesses.
• Public benefits far outweigh public costs.
• Customer service is better.
• Investment in the Capital Area is encouraged.
• Significantly more money circulates in the region (73 percent versus 43 percent).”

Obviously, anytime we make a purchase decision, we should consider local businesses too, not just on “Small Business Saturday.”"

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States where the economy is strongest (and weakest)

Ranking the states via the Bloomberg Economic Evaluation of the States (BEES) index for fall of 2011.

BEST

1. North Dakota

2. Michigan

3. California

4. Massachusetts

5. Illinois

 WORST

48. New Jersey

49. New Mexico

50. North Carolina

Perhaps this data indicates there’s a revival brewing in parts of the Rust Belt? My, that be a wonderful and welcome change.

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