Free Markets, Free People

Daily Archives: August 12, 2010

Stupidest Thing I Heard Today

Henceforth to be titled “STIHT”.

Almost every day I’m confronted with beyond-ridiculous statements that turn me sideways. I literally cringe when I hear/read them. A little monologue automatically goes off in my head (OK, and out loud once in awhile as well) that serves — for my purposes — to make the bad thing stop. Because the stupidity has become relentless, I feel the need to rant publicly. Hence STIHT.

So, as I’m finishing my day, leisurely pondering the conclusion of the TV show I was watching, that nasally, self-indulgent voice of Sex In The City’s primary protagonist wistfully bleats “Someone once said that two halves make a whole.” Let me tell you: the sinews, tendons and synapses controlling my fingers’ hasty dispatch of power to the source of such inanity were so swift as to make Mercury look like Kurt Rambis. My sanity was saved with a flick of the wrist.

Why? Well, allow me to rant.

No one, in the history of all intellectual life, has ever said “two halves make a whole”. Sure, someone has actually said those words. But I can assure you that, apart from the confines of the writer’s room for Sex In The City, no one who said them was met with anything less than a Potsie-perfect “Duh.”

Because the profound thing about the statement, to the extent there is anything, is not that two halves make a whole, but instead that a “whole” can be split into two halves. That wisdom has been known since at least the time of Ur, and probably for quite a bit before that.

Put simply, there is nothing remotely profound in the statement that “two halves make a whole” since the only revelatory thing of the entire statement is the complete converse — i.e. that a whole can be split into two equal parts called “halves.” That “someone once said” such an unenlightening statement may in fact be true, but it doesn’t prove anything apart from the utter vacuity of the person proposing such statement to have meaning at all.

Now for the anticipated FAQ’s:

“So what’s the point of your rant?”

Stupid things piss me off. Writing about their stupidity seems better than punching holes in walls (yeah, you’ve been there).

“But why do I care?”

Why would I know? Or care?

“I mean, why should I bother reading your rants?”

Don’t bother. I write them to keep down on my drywall and putty expenses (OK, and for entertainment purposes). Consider it like a reality show — public therapy.

“But would Snooki approve?”

No. Punching walls is mandatory in her world.

“Are there midgets involved?”

Oh, just wait until my next rant. I mean, they’re not even real people.

“Is Daniel Tosh funnier than you?” (See last link)

Who are you! Tell me your name! Who sent you! I have RIGHT to know who you are!

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Dale’s Observations For 2010-08-12

RT @dmataconis: Employment Picture Looking Even Bleaker http://bit.ly/aYtjrB #RecoverySummer #

Is this finally the economic collapse? http://bit.ly/avLkzW #

The average 30-year mortgage rate fell to 4.44 %, the lowest since Freddie Mac records began in 1971. http://bit.ly/cznNk1 #RecoverySummer #

Jobless claims jump to 5-month high, with 484,000 new claims for unemployment. http://bit.ly/aDoxgB #RecoverySummer #

Dear GOP – don’t get too froggy thinking you’re the “solution”

Because most Americans don’t share your evaluation of yourself.  In fact, because of the dismal performance of the Democrats, you’re only slightly more “acceptable” than they are:

Americans are growing more pessimistic about the economy and the war in Afghanistan, and are losing faith that Democrats have better solutions than Republicans, according to a new Wall Street Journal/NBC News poll.

Underpinning the gloom: Nearly two-thirds of Americans believe the economy has yet to hit bottom, a sharply higher percentage than the 53% who felt that way in January.

The sour national mood appears all-encompassing and is dragging down ratings for the GOP too, suggesting voters above all are disenchanted with the political establishment in Washington.

In fact, just 24% have positive feelings about the GOP, which according to the WSJ, is a new low in the 21 year history of the poll.  In fact, the only reason you’re under any sort of consideration at all is because we’re stuck with a two-party system –something you and the Democrats have been careful to manage – and you’re the only other choice.

If you’re thinking “mandate” in November, I’d change my thinking.  I think it may be better described as “your last chance” … or maybe your “next to last chance”, the last chance coming on the heels of the 2012 presidential elections.

"The Republicans don’t have a message as to why people should vote for them, but it’s pretty clear why you shouldn’t vote for the Democrats," said poll respondent Tim Krsak, 33, a lawyer from Indianapolis and independent who has been unemployed since January. "So by default, you have to vote for the other guy."

Great reason to vote, isn’t it?

You guys better buy a clue (and if you do, use your own money).

~McQ

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The classy left: If you can’t beat ‘em, just insult them

You know you have an opponent on the run when that opponent is reduced to puerile, schoolyard insults.  That would be the left.

The first indication that the Tea Party had their goat was when they decided to use a sexual slang as their mocking moniker – Tea Baggers.

Now they’ve managed a new low. Ben Smith at POLITICO has the story:

Last summer, Democrats argued that the Tea Party movement was the astroturf creation of corporate groups. Now that the grass-roots conservative resurgence has emerged as a clear force on the right, the left is making a different case: That tea parties are simply the enemy.

To that end, the Agenda Project, a new, progressive group with roots in New York’s fundraising scene and a goal of strengthening the progressive movement, has launched the "F.*.c.k. Tea project," which is aimed, the group’s founder Erica Payne wrote in an e-mail this morning, "to dismiss the Tea Party and promote the progressive cause."

""We will be launching new products in the next several months to help people all over the country F*ck Tea," Payne told POLITICO. "Products like a Glenn Beck Bowl Buddy (Beck B Scrubbin) and others are perfect holiday gifts or just a great way to say, ‘I love you and our country’ to your spouse, friend or family."

You know, I enjoy a clever turn of phrase as well as the next guy – an imaginative and witty answer to some question, etc.

This is just the left being the left.  And, of course, when it comes to their favorite ox being gored by the right, they’ll somehow manage to talk about “class and respect” with a straight face.

Amazing.

18 months ago they were the toast of the town, bringing “hope and change”.  Now they’ve self-destructed and are back to their old rude and crude selves.  How “progressive”.

~McQ

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Is the US bankrupt?

A good number of voices are beginning to say that technically, if not in fact, the country is bankrupt.

For instance:

America is a "Mickey Mouse economy" that is technically bankrupt, according to Jochen Wermuth, the Chief Investment Officer (CIO) and managing partner at Wermuth Asset Management.

"America today looks like Russia in 1998. Consumers, companies and the government are all highly indebted. America as a result is a bankrupt Mickey Mouse economy," Wermuth told CNBC.

Wermuth goes on to say that if the same IMF team that managed the 1998 Russian financial crisis in Russia were to walk into the US Treasury today, “they would withdraw support for current US policy”.

And don’t forget Mort Zuckerman who called the present policies our “economic Katrina”.

But as bad as present policies are, they aren’t solely the reason we’re in the awful economic shape we’re in.  We have a history of that.

"Even before the (Troubled Asset Relief Program) and the expansion of the Fed’s balance sheet, total US public and private debt as a percentage of GDP in the US stood at 290 percent, that figure is now far higher," Wermuth added.

Laurence Kotlikof explains it in terms of a “fiscal gap”. 

The fiscal gap is the value today (the present value) of the difference between projected spending (including servicing official debt) and projected revenue in all future years.

The IMF pointed out in its last report that the US must close this fiscal gap to “stabilize the debt to GDP ratio”.  The IMF estimates ““closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

So what does that mean in dollars?

To put 14 percent of gross domestic product in perspective, current federal revenue totals 14.9 percent of GDP. So the IMF is saying that closing the U.S. fiscal gap, from the revenue side, requires, roughly speaking, an immediate and permanent doubling of our personal-income, corporate and federal taxes as well as the payroll levy set down in the Federal Insurance Contribution Act.

Note the two words – “immediate” and “permanent”.  In order to pay off the huge debt our “betters” in Washington DC have run up over the years, strictly from the revenue side, our taxes would have to see an “immediate” and “permanent” doubling.

Sounds like bankruptcy to me.

Kotlikof also tells us about the shady book keeping Congress has been engaged in for decades and what the books probably really look like:

Based on the CBO’s data, I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt. This gargantuan discrepancy between our “official” debt and our actual net indebtedness isn’t surprising. It reflects what economists call the labeling problem. Congress has been very careful over the years to label most of its liabilities “unofficial” to keep them off the books and far in the future.

But of course, “official” or “unofficial” it is still debt.  Whether Congress will admit to it doesn’t change the fact that it is future debt that Congress has incurred through its profligate policies.

And what’s going to bring this all crashing down, despite the smooth and reassuring words of politicians without a clue?  Promises made with no fiscal ability to keep them because, in reality, they’re Ponzi schemes:

We have 78 million baby boomers who, when fully retired, will collect benefits from Social Security, Medicare, and Medicaid that, on average, exceed per-capita GDP. The annual costs of these entitlements will total about $4 trillion in today’s dollars. Yes, our economy will be bigger in 20 years, but not big enough to handle this size load year after year.

Got that – government promised $4 trillion a year that it doesn’t have and never has had.  And, thanks to Congressional Democrats, it just expanded that bill under ObamaCare.  The system, much like an engine running at hight RPMs with no oil, is going to stop and stop abruptly:

The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills.

The result of any of those, of course, would be economically catastrophic.  And the results among the citizens of this country would be horrible:

Most likely we will see a combination of all three responses with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one we are on. And bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece.

For years and years, politicians have claimed all is well with these programs, that we can afford them and that they’ll always be there for those who need them.  None of the above is or has been true since their inception.  If any private business operated as these programs have, the CEOs would be under the jail and wouldn’t see daylight until our sun exploded.

For years, the left and Democrats have made war on corporations and businesses all the while it has been government leading us to financial ruin.  This debt isn’t debt run up by the private side of the economy.  It is purely government’s doing.  Now, given the gravity of the situation, we have very few options and the future does not look bright.

Next time you see your Congressional representative or Senator, thank him or her for the mess they’ve had a hand in creating and ask them how they are going to fix it.  Don’t be surprised by the blank stare you receive in return.  They haven’t a clue.

~McQ

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