Once this downturn really gets going where do the governments begin to cut. I was doing some recent reading on which the zeal of enforcing Prohibition waned then died as the GD really got going in 33. How does the war on drugs fare as this goes forward? How much money is spent yearly on that fight that might not be available?
How do you know what we all make? Also, I am sure many could survive with a 10% pay cut, but I am guessing the majority of CA state workers are not included in that group. I am sure foreclosures would increase, and bankruptcies. Spending would go down, business incomes...
Empty threat. By Feburary the State will be illiquid. Actually They don't have enough for January so a Feb threat is doubly hollow. Sacramento is still clueless, they just don't understand the electorate. I take that back, they unstand the electorate, they vastly misunderstand the taxpayer. In California like few place else those are not congruent. Those of us who pay are not going to pay what they expect. The Golden State is planning on killing the Golden Goose.
By floating a notion like this, doesn't Arnold decrease consumer spending just by creating fear? The state employs massive numbers of people that are addicted tothe stability of their jobs. That's the main benefit of working for the state.
Part of this is a negotiating tactic. This will end up as an either/or. Will the unions prefer pay cuts for everyone, or layoffs for a minority? Sophie's choice.
How does the war on drugs fare as this goes forward? Seeeing as how the DEA has become institutionalized, and too many jobs depend upon its support, as well as prison guards, counselors, parole officers, no reduction in the war on drugs will occur until there is a reduction in the dominant puritanical attutudes under which this country labors.
dr munch(Unrated) writes: \tThe work will get done, the workers won't be missed, and we'll wonder why they ever had to show up all those extra days. dr munch | 12.19.08 - 7:55 pm | #
Hey don't talk about our off-shore coding team like that!
As a liberal, I have no problem with a 10-25% pay cut (want you to know I fired myself and now unemployed).
Among the long tern changes that must be made, Is that no one retires after 20 or 30 years. CA should turn over to SS all funds and that all CA govt employees must comply with the standards of private citizens...
rob dawg, I'm with nemo, The Obama admin is going to shovel money to the states billyboy | 12.19.08 - 7:53 pm | # Absolutely. California needs $20b to carry through to April tax reciepts. Just exactly what guarantees do we need to make? The problem isn't revenue, it is spending. There literally isn't enough money to deal with California's structural problems.
"Those of us who pay are not going to pay what they expect. The Golden State is planning on killing the Golden Goose.
Rob Dawg | Homepage | 12.19.08 - 7:51 pm | # "
Nobody's presented the voters with hard choices in years -- golden goose is the wrong metaphor. Having your cake and eating it, too, is the right one. So they've been pandered to, and lied to, and now the pols are afraid to try to speak straight to them.
And it'll take a bigger man than Arnold to do it -- or woman. We'll just go down the tubes until the pain gets big enough and the electorate, shocked out of their blissful stupor, will see things clearly and make a decision. Which may be different than what either you or I might hope for.
This will spur borrowing - the desperate, cash advance on the credit card type borrowing. These folks live paycheck to paycheck and can't afford a dip in income.
stfu writes:
001 writes:
How does the war on drugs fare as this goes forward?
When the times get tough, the tough get going...Feds and CA will legalize drugs and tax the H*ll out of it...unless it is sold on the internet, which will be the next to be taxed...
"Anonymous writes:
As a liberal, I have no problem with a 10-25% pay cut (want you to know I fired myself and now unemployed).
Among the long tern changes that must be made, Is that no one retires after 20 or 30 years. CA should turn over to SS all funds and that all CA govt employees must comply with the standards of private citizens..."
I'm a liberal, too, and the retirement is all that makes some of those jobs worthwhile. I work in the UC system -- Deflation Jane, you around here, too?
Yeah, the hourlies and the admins are here for the health care, but the analysts and department managers and mid-managers, the 20-year-guys, are here for the retirement. Take it away, and they'll leave as soon as there's something else to leave for. University pay is pathetic.
And then they'll have to raise the pay and... what have you gained?
I agree that a fully-funded public pension/medical plan should replace all private plans. But until that's in place, don't expect to take the private gov't plans down. Not happening.
stfu writes:
001 writes:
How does the war on drugs fare as this goes forward?
When the times get tough, the tough get going...Feds and CA will legalize drugs and tax the H*ll out of it...unless it is sold on the internet, which will be the next to be taxed...
Ahhnold does not draw a salary from his job as governor...maybe we got what we paid for...I just wish he could pronounce the name of our state correctly....
"When the times get tough, the tough get going...Feds and CA will legalize drugs and tax the H*ll out of it...unless it is sold on the internet, which will be the next to be taxed...
Anonymous | 12.19.08 - 8:03 pm | # "
Been waiting for that for 20 years. Legalize it, tax it, regulate it. $10/pack tax on a pack of fatties would just about take care of business.
How does the war on drugs fare as this goes forward? Seeeing as how the DEA has become institutionalized, and too many jobs depend upon its support, as well as prison guards, counselors, parole officers, no reduction in the war on drugs will occur until there is a reduction in the dominant puritanical attutudes under which this country labors.
001
Many states are going to be forced to release the 'user' druggies put in prison for long terms because the cost of prisons isn't tolerable in bad times economically. This is to the good, IMO, because prison has become a business and major occupation that is probably negatively productive to society.
The prison guards (and the cost of prisons) are going to object, and they have the testicles of the male legislators and the children of the female legislators. I'd bet 30% of the prison population could be released or released into drug programs without a blip of public security.
American Honda cancels "2009 Honda Hoot" due to economic uncertainty. FYI, the third-largest annual motorcycle rally in N. America. The Hoot is one of Honda's biggest sales events in the US.
This comes after announcing no new models and pulling out of Formula I racing and they're considering pulling out of Moto GP racing. Sport motorcycle sales in the US revolve around who's participating in Moto GP.
See "Road Racing World," December 19, quoting press release.
Does anyone sense a problem here?
A Honda spokesman in Japan said, "More than we imagined, the economic crisis has had an influence on what we do."
What happened to the rainy day fund where they accumulated reserves from the dotcom/Y2K bubble and the massive housing bubble ? bearly | 12.19.08 - 8:06 pm | #
Supposedly people have been sitting on the sidelines as far purchasing Christmas presents. So in the last week or so we have heard:
Chrysler is toast. All their suppliers know this. The people working in these plants see the drops in what is going on. GM same. Nissan and Toyota down south are seeing the same thing.
The Hedge fund and Madoff is not going to register. The MSM which is doing stories on the billions going to bonuses will.
The CA 2 days without pay will definetly register. Since CA is so huge retail sales will feel it. Almost every state and county employee will be paying attention.
My translation: Retail is really, really going to suck. So will the loss of those sales taxes.
I'd bet 30% of the prison population could be released or released into drug programs without a blip of public security. JimPortlandOR | 12.19.08 - 8:07 pm | #
I dunno. I expect the newley unemployed and the newley released to be a bit more than a blip.
With our collapsing economy, we do not have a choice. I understand that as a university employee, you will screwed, however we will/are all getting screwed, whether we like it or not...
All I am saying is that you will take a direct hit or a glancing blow...No one is going to be un-affected...
We'll know a lot more about California in January, after the 1st installment of property tax has been distributed to cities, and Q4 sales tax has been tallied.
Sales tax revenue is already in the toilet, auto sales being the bulk of it.
Going back to the last thread about commodities and precious metals, I'd like to say that I really do value the consensus opinion on this board. So, if several informed regulars think gold will tank, I do consider what they are saying.
I think they are wrong, but I will allow their argument has merit.
I do monitor all commodities daily. It was very interesting that both USO (oil) and GDX (PM miners) both rallied into the close after weakness earlier.
I also look at the futures contract structure, which is vastly different now for oil (deep contango) and gold (verging on backwardation). Contango means glut; backwardation means hoarding. Historically, it's usually been exactly the opposite, with backwardation in energy and contango in PMs.
I am very long PMs now and have done great with them the last two weeks. But if energy weakens from here, I'll be moving some PM money into energy. I still believe in food, which had been doing well until today, and soon I'll probably heavy up on base metals.
If you have a mid- to long-term horizon, you can't go wrong with commodities. They are real and the world needs as much of them as it can get.
Think real, not paper. I'll let you know what I think.
and what percent of CA jobs are govt? Lets say 10%. SO, 10% of 10% is 1% of CA income toast. That will work REAL well for the budget and the economy in general.
There was once this movie with Sean Young and some blond guy...Kevin something...maybe he should have been governor.
Nobody's presented the voters with hard choices in years -- golden goose is the wrong metaphor. Having your cake and eating it, too, is the right one. So they've been pandered to, and lied to, and now the pols are afraid to try to speak straight to them. Bob Dobbs | Homepage | 12.19.08 - 8:00 pm | #
It's a bread and circuses electorate. The threshold for feel go simplistic Propositions qualifying for the ballot is very low. Thus Prop 1a for a high speed rail between LA & SF. The real problem is that the ones voting are not the ones paying and are oftentimes the ones on the recieving end of the largess.
Based on my experience, unions will accept layoffs and early retirements for the few to protect wages for the many.
I honestly have no idea. The SEIU has proven itself 100% corruptable, so the leadership will probably do for themselves before the good of the union. The engineers and the prison guards fight a much more nuanced battle. We also haven't heard from "the people" yet. When the lines at the DMV are out the door, maybe they'll react.
Counldn't happen to a more deserving state govt. There are still a lot of wealthy peeps in CA to tax the crap out of. But they will be the last to pay...
Division of Adult Institutions, responsible for the adult prisons, and Division of Adult Parole Operations. These have a 2006/07 budget of $8.75 billion and 57,641 employees, of which 32,772 are sworn peace officers.[9]
California State Prisons
Avenal State Prison (ASP)
California Correctional Center (CCC)
California Correctional Institution (CCI)
California Institution for Men (CIM)
California Institution for Women (CIW)
California Medical Facility (CMF)
California Men's Colony (CMC)
California Rehabilitation Center (CRC)
California State Prison, Centinela (CEN)
California State Prison, Corcoran (COR)
California State Prison, Los Angeles County (LAC)
California State Prison, Sacramento (SAC)
California State Prison, Solano (SOL)
California Substance Abuse Treatment Facility and State Prison, Corcoran (SATF)
Calipatria State Prison (CAL)
Central California Women's Facility (CCWF)
Chuckawalla Valley State Prison (CVSP)
Correctional Training Facility (CTF)
Deuel Vocational Institution (DVI)
Folsom State Prison (FSP)
High Desert State Prison (HDSP)
Ironwood State Prison (ISP)
Kern Valley State Prison (KVSP)
Mule Creek State Prison (MCSP)
North Kern State Prison (NKSP)
Pelican Bay State Prison (PBSP)
Pleasant Valley State Prison (PVSP)
Richard J. Donovan Correctional Facility at Rock Mountain (RJD)
Salinas Valley State Prison (SVSP)
San Quentin State Prison (SQ)
Sierra Conservation Center (SCC)
Valley State Prison for Women (VSPW)
Wasco State Prison - Reception Center (WSP)
Contrast:
- Within the 98,000 square miles that make up the Oregon landscape
- Just over 3.7 million people make up the population of this diverse state.
- Oregon State Police has 580 sworn personnel and approximately 700 non-sworn personnel working in 39 offices throughout the state.
I'd sure rather have more officers on patrol than prison guards for MJ/coke possession in these coming hard times.
lets face it, wages will decline, and co. ins/pensions will be reneged on, unless everyone is thrown into the same pot-FED benefits, whatever level we can afford...
I am very long PMs now and have done great with them the last two weeks. But if energy weakens from here, I'll be moving some PM money into energy. I still believe in food, which had been doing well until today, and soon I'll probably heavy up on base metals.
If you have a mid- to long-term horizon, you can't go wrong with commodities. They are real and the world needs as much of them as it can get.
Think real, not paper. I'll let you know what I think. rich | 12.19.08 - 8:13 pm | #
Rich, long term I fully agree that commodities are a good play. I'm thinking about scaling into oil to hold for the long-term as well as agricultural.
I'm just in the camp that believes that people vastly understate the hold that deflationary pressures have right now. I'm also in the camp that as bad as we are, the rest of the world is going to be worse off short-mid-term. And the news out of China/Japan/Germany lately absolutely backs this belief up. Exports are imploding with no end in sight. And the rest of the world is way behind the curve, just like the US was 6 months ago.
There is no decoupling in sight, the rest of the world will have to cut rates further which will help the USD short-term as well.
Anyways, thanks for your info. and sorry if I rag on you. Its hard to tell sometimes whether you are giving short-term or long-term calls.
"I bet the stimbamalus package throws more than a few billions to the states."
Obama has only one thing that he can promise to the states: he can offer them funding to be paid for by future taxes. In other words, he can offer them your time and labor.
Once that is promised, your personal possibilities are diminished by that amount. Have fun.
I have two friends that work for the Cal University System as software engineers. They make GREAT salaries. I have no idea what anyone else makes in the Cal University System but software engineers are not hurting, that much I know.
"Many states are going to be forced to release the 'user' druggies put in prison for long terms because the cost of prisons isn't tolerable in bad times economically. This is to the good, IMO, because prison has become a business and major occupation that is probably negatively productive to society."
Cal turned down exactly that opportunity, by 60/40%, only six weeks ago.
Folks, this little stink bomb was entirely expected. It's the gov's way to clear a lot of heads of the interested parties.
If you look at what he intends... He wants reductions from the entitities that receive State General Funds. If true, this brings an interesting complication to the reduction process.
There are two entities that receive NO general funds: CPUC and Energy Comm'n. Some others receive lion's share of their total budgets from Fed sources (Rehabilitation, ~78%; Education ~? and Transportation ~50%).
In particular, Transportation ("Caltrans") is going to need to be fully staffed in order to shovel Cali's share of the pending Infrastructure Investment Bailout (Super-TARP) into the highway and transit projects that are being lined up.
I see this as a double-threat. Not only is Ahnold threatening the State's legislators, he's also threatening the state's congress-people. The most visible items a cong-prsn can deliver to the home district is transport/transit projects. If these are delayed, some newly-minted cong-prsns are going to look like they failed to deliver to their voters, especially if other states are able to translate their cash-backs into delivered projects sooner.
This "memo" just puts the point on his "requests" for federal assistance with the state's budget.
Haha, didn't hear one single austrian word the whole 3+ minutes.
btw, the "real" one was a whole lot better, even though he was by no means the best one (but still excellent). (If you are old enough and have access to really good interpreters you may come to appreciate it)
"May I ask is their job guaranteed. I am thinking the money made by IB bankers...
Look it, no one has guarantee on their current salary/income. If this sucker goes down, we all go down with it..."
One of them I believe already has tenure, the other one doesn't. I was surprised at the salaries as I always thought they would be a lot lower then private sector but made up for it with the benefits.
Obama has only one thing that he can promise to the states: he can offer them funding to be paid for by future taxes. In other words, he can offer them your time and labor. Once that is promised, your personal possibilities are diminished by that amount. Have fun. wally | 12.19.08 - 8:26 pm | #
They can also increase the money supply and funnel to the states [instead of the banks]. Now which of the two is more likely to hoard?
The problem with the governor's brinksmanship is that he has the weak hand. The teacher's union runs primary and secondary education and has no qualms in tweaking parents with draconian tactics. Likewise the CHP can and will adopt strict enforcement and labor rules. Nothing like a few thousand 56mph speeding tickets to explain the situation to the populace. California spends too much on personell and nowhere near enough on infrastructure. This isn't going to change within the existing political structure. There's an even more ominous issue of regional conflict. There's the two megapolitan areas of SF and LA and the rest of the State.
"I agree that a fully-funded public pension/medical plan should replace all private plans."
You may have it backwards but, either way, the public and private sector retirement structures have to be harmonized before we soon tear ourselves to pieces.
I agree no one will voluntarily change their demands with out a crisis...I suspect that the coming years (09-?) will force the change in how business is conducted...
mmckinl writes:
...No where to work , education is too expensive and products don't sell in a world wide depression...
If you provide products for which a real need exists, be it new products or more efficient current stuff you will have no problen.
But the benefit must be real.
As to education, good. T.A. Edison e.g. did not have good education.
And look what he did !!!
Austrian--Nice people! Kinda like the 'Germans who act more like Italians.' (Although you can add the guy who kept his daughter in the cellar to the earlier list). Tschuß!
If you have ever been in a war zone, every persons' concerns are equal to every other...
Lets consider this situation that we are stuck in a war zone...I do not care if you are a doctor, a ditch digger, a banker or an Engineer, we are all people that need each other, if we are to survive...
I would've gassed them both.
Persecuted Comrade Anonymouse | Homepage | 12.19.08 - 8:00 pm | #
I hope they lose everything!
Persecuted Comrade Anonymouse | Homepage | 12.19.08 - 5:23 pm | #
Previous thread.
Being a saver I was very long the dollar most of my life. When the evidence of massive fraud in the system began evident to me I looked for alternatives. If gold takes a massive dive I deserve to lose and it will be painful. I have had ample warnings from posters such as yourself.
Good Luck in your trades. I hope you come out OK
"It's a bread and circuses electorate. The threshold for feel go simplistic Propositions qualifying for the ballot is very low. Thus Prop 1a for a high speed rail between LA & SF. The real problem is that the ones voting are not the ones paying and are oftentimes the ones on the recieving end of the largess."
County by County results for Prop 1A makes your case.
Sounds like we have our next mega-trend ... salary "cramdowns." central_scrutinizer | 12.19.08 - 8:38 pm | #
Be more lay offs in the private sector than cramdowns - less demoralizing. In public sector 'salary cramdowns' and freezes might be more common.
But if you are in a private business - they'll start sorting employees by both salary & 'performance' and try to get rid of as much underperforming big money as they can. Where my wife works they are well into this process [she's in mgmt & knows - has already sorted her dept.] Then it just comes down to a numbers game - how much to cut and when. It is almost like fantasy football but in reverse.
It will be especially bloody in white collar [more of them, they are paid better and harder to justify from a 'necessity' perspective]. Rule of thumb - ask yourself: If I don't show up today does the place stop functioning? Can they ship product or perform services without me? If the answer is 'yes - they can ship just fine' then you too are vulnerable.
But the reason layoffs are less stressful is that EVERYONE is pissed off when their salaries are cut, no one thinks THEY'D be laid off so it really pisses them off to have their salary cut to save somebody else's job - so morale is crap. But in a mass lay off the most despondent & bummed are the ones leaving... the survivors are bummed like for a week then they forget about the others.
Plus if you lay off you choose who you keep - if you cramdown the best employees leave as soon as they find better pay so end up with the worst of all worlds - demoralized crappy workers.
I believe that we are at a crossroad in developed world societies and the intense emotions vented here because of the various bailouts are an interesting though not representative reflection of it. The essence of the article that ac posted yesterday evening âWhere Schumpeter was nearly Right â the Swedish Model and Capitalism, Socialism and Democracy" IMO has much more meaning in our present circumstances than is yet generally acknowledged. The key for me is Schumpeter's thesis that âthat socialism would eventually displace capitalism in Western democracies. This would come about as a result of the superior performance of capitalism". I remember when I was in Bombay, India in 1991 in a meeting with then Tata Consultancy GM F. C. Kohli, the âfather of the Indian software industry". I asked him why there wasn't more use of automation in Indian airports (Tata had taken over management of a number of Indian airports by that time)? His answer was quite telling and I paraphrase âWe have such a high unemployment rate in India that we need to fill as many jobs as possible by people. More automation would increase unemployment significantly. We have to strike a very delicate balance between unemployment and better services made possible via automation." Kohli's point ties perfectly into the Schumpeter quote about the âsuperior performance of capitalism". I have long believed that there will be a breaking point even in developed nations where labor is in overabundance. The addition of huge labor pools in the 80s and 90s to the world economy has already lowered or at the very least held wages steady. In addition, tremendous advances in automation have reduced manpower needs in ever more job sectors. I call the combination of these developments the âcommoditization of labor". The full impact of the commoditization of labor weren't felt in developed societies because the boom generated a surprising number of well paid âHigh Touch" jobs. The bust, from my perspective, will expose the detrimental effects of âHigh Tech" because in hard times, there is a tremendous run to efficiency. DOT-COM/Y2K over expenditures resulted in lots of waste but also in huge technology advances that can be leveraged into tremendous productivity improvements. Our societies will now experience the full impact of the potential of these technologies. IMO it will lead to consistently increasing unemployment. My ballpark numbers have long been that the unemployment rate will match the last two digits of the year for two decades or more. This will lead to a significant restructuring of political realities in our societies. IMO the Swedish economists in ac's link will turn out be wrong and Schumpeter will be proven correct. With productive and well paying jobs available to fewer and fewer people, the present political and economic system cannot survive. Either democracy disappears or a socialist form of government evolves. This board reflects some of these strains perfectly as many of those with resources and jobs vent their anger at those who don't have one. As more and more jobs disappear and the tax burden on those with resources and jobs steadily increases, the battle will intensify. It will be interesting how long the present form of government/democracy survives and how long it will be before we hear the first serious calls for the abolition of âone man, one vote".
California's problem that in its political systems voters are required to make the hard choices, and they just can't do it.
They pass prop 13, vote out a car tax raising governor, require a 2/3 public vote on any local taxes and fees. Then they support various tough on crime initiatives that swell prisons, mandate the set aside of huge chunks of the budget for education, support repeated bond initiatives to build stuff.
What do you want? Lower taxes or more spending? They answer over and over again has been "both."
California's future needs to be 1) release 1/3 of the prisoners and close down some prisons 2) change prop. 13 in a manner that allows commercial and limited residential reassessments. 3) Reimpose the old car tax levels, 4) hike university/college fees/tuition. Can't afford it? sorry, the state can't either right now.
But most of this can't be done without a vote of the people, or won't be done by a legislature that needs its party's base to support it in two years.
Basically, California is GM. The voters are the UAW, unwilling to give up the entitlements they think they "earned" and the politican/executives are so hamstrung by prior bad choices that there no viable options now.
And it'll take a bigger man than Arnold to do it -- or woman.
To be fair, Arnold did try to head this off in 2005:
"In a sharp repudiation of Gov. Arnold Schwarzenegger, voters rejected his most sweeping ballot proposals on Tuesday in an election that shattered his image as an agent of the popular will.
Voters turned down his proposals to curb state spending, redraw Californias political map and lengthen the time it takes teachers to get tenure."
Dope in a hole. Explorer shows the whole thing. I defended Jas for awhile. I still do not know if what he portrays here is his whole agenda. I just got tired of it and being a devaluanista I took it on.
Basically, California is GM. The voters are the UAW, unwilling to give up the entitlements they think they "earned" and the politican/executives are so hamstrung by prior bad choices that there no viable options now. serf hopeinsd | 12.19.08 - 8:54 pm | #
"We also haven't heard from "the people" yet. When the lines at the DMV are out the door, maybe they'll react."
Its would be interesting to understand how they decide who and what services, and in what order they reduce. The last budget crisis in Cali, I remember the first thing Caltrans did was close the highway rest stops. They even put signs out that said something like "Closed Due To Fiscal Emergency" or some such. I'm sure there wasn't something less essential to public health they could think of.
May I suggest a book, "The Human Condition", by Hannah Arendt.
If I understand correctly, people define themselves by what they do...If you take that away from, there is a problem...With increasing productivity and robotics, society needs to come up with a new definition of self and person...
I am not the smartest tool in the shed, however, her ideas are worth reading...
Such was always the case for capitalism ... Marx knew it 150 years ago ...
There is going to have to be renationalization whereby economies will be self sufficient to a lrager and larger degree. And yes, government involvement in suppotive structures for the public.
Look for a higher and stronger safety net with reductions in working hours and retirement benefits.
As most of you know, I am a San Diego area municiple police officer. Our city, like every other city in the county or state for that matter, is facing serious budget issues. Our union is going around and around with our city council, and we have just agreed to give (postpone) our next year's raises in lieu of a threat to lay off dozens of officers. The golden parachute was offered again (second time this year) to those close to retirment, so the strategy is to get them off the city's dole and onto CalPer's. My wife, who works for the county, is also getting constant budget related news. They face serious shortfalls and golden parachutes abound at her work.
No one has made the move to actually lay off public safety people. But the threat to (like Arnold's threat) has gotten employees and their unions to start conceeding raises and other perks.
We all hope and pray that we don't lose 3% at 50 retirement...but I don't see how they don't try to take it away...it amounts to a back breaker for the taxpayer longterm.
There is no way we are at bottom, because all govt agencies are pussyfooting around and havent been forced to make real decisions. Come this next fiscal year July 2009, you will see the sh$t hit the fan and the next leg down in unemployement and the economy will come.
However, it would be easy for the Fed to simply inject money into all the state's coffers and make them instantly solvent. This would prevent jobloss, amount to a stimulous package, would begin to reflate the deflating bubble, and save politicians from actually making hard choices. If they could magically make digits appear in the bank accounts of the states, much of the worst problems will be avoided. Since Bernanke has said they will do anything to avoid deflation....I think printing money in the form of simply adding a zero or two to state's reserves qualifies as "anything".
I live in Rhode Island. They tried this here. The courts exempted its personnel on the basis that all the political hacks in the court system were too vital to be forced to take a single unpaid day off. Oh yeah, these judical employees are so vital that on average they have 5 weeks of vacation per year and 10 personal days. They have--are you ready for this?--unlimited sick days. And because they work so long hours--37.5 hours per week--they get every possible holiday off as well. I guess the RI judicial system only shuts down if its employees aren't paid when they don't show up. Anyways, once the political hacks in the judical branch announced that they weren't going to do their part, the executive and legislative branches gave up the idea. Now the plan is to tax everything that breathes, moves, eats, craps, or dies. Hmmm, I wonder how this will turn out. Talkin' bout a revolution, baby?
Anecdotal: In my work I use a PI, one of the top guys in Cali (he's the go to guy for the Hells Angels - just won murder trial in Sturgis, SD) told me his clients would all prefer private run prison over public in Cali because at least in private operation the guards know there are consequences for abusing the prisoners - they can be fired.
We all hope and pray that we don't lose 3% at 50 retirement...but I don't see how they don't try to take it away...it amounts to a back breaker for the taxpayer longterm.
Average Joe | Homepage | 12.19.08 - 9:04 pm | #
With all due respect it is 3@50 with the baseline calculated on padded OT and the infamous CalPERS spike. Then there's the Chief of Fillmore who is a full triple dipper also pulling full salary.
mmckinl writes:
...The low hanging fruit of invention has already been picked...
In a way, if you refer to the fact that a lot of inventions are made in labs with tonns of PHDs, I can see your point.
But think e.g. Bill Gates. He was a College dropout, founded an horribly obscure software-shack, did some obscure programming work for municipalities (traffic light control I think), bought cheaply the rights for DOS from IBM (they were in "big iron" and did not value that "amateurish" low level stuff, and whoaa! Sure, he had lots of luck, but in the beginning he also put in a hell of an effort and stayed on the right course. So, with a little less luck... it may not suffice to become the richest guy on earth, but still...).
I remember hearing about the "martial law" bomb when it happened. One Congressman discussed how his colleagues had told him of that very conversation. People told me was a conspiracy theorist at the time...
DMV consumes nearly all the fees collected with operations. Anybody here doubt that Ken Cooper can whip up a Firefox plug-in over the weekend to replace 80% of the department for 20% of the cost?
mmckinl, it's true, don't you remember the Congressman that came forward that same week? Wish I could remember his name, but he said other Congressmen had told me of that conversation. It was downplayed by the press and didn't get much traction in the blogosphere but it is exactly why they got it passsed the second time.
If anyone thinks eliminating prisons will save money they are smoking crack.
The prisons are either full of very violent people...and there are alot of them in California, or they are full of druggies.
The cost to house a prisoner for a year is about 50 grand or so. Now, the cost to support a drug habit is way way way more than that. And, if you pay for the habit by having them steal something you paid $500 bucks for and sell it for $20, then it gets even more expensive.
The prisons are full of people that are rotated in and out over and over. Each time they go in, they consume time and effort, court time, probation time, police time etc. It's much cheaper to put them in and keep them there than to let them out and let them cause thousands of dollars of damage, not to mention violence and death, so we can work our butts off to catch them again and prosecute them.
When they are out of prison, they befriend others and teach them their criminal ways, they impregnate strangers and leave kids in their path that need welfare and suffer abuse and neglect only to grow up criminals.
If I only paid taxes for one thing. It would be for prisons.
OK, but a lot of this stuff is rhetorical. I think most people know there are definite advantages to preserving the order, but I'm only speaking for myself...
Reuters about FedX cutting salaries 5%: "The companies are counting on the fact that people will be scared and won't resist. I mean in this environment, who wants to quit and look for another job?"
Did I miss the news about this happening at AIG? GS?
mmckinly, here is an article on it from the time. Now the right has picked it up and Worldnut is carrying it. When we were bringing it up we were told we were moonbats, go figure.
bought cheaply the rights for DOS from IBM Werner | 12.19.08 - 9:09 pm | #
Werner, you are misinformed. Gates didn't buy DOS from IBM. He bought the rights QDOS from Seattle Computer Products to sell his services and DOS development to IBM. Digital Research lives in infamy forever since.
Although the NDA was later accepted, DRI would not accept IBM's proposal of $250,000 in exchange for as many copies as IBM could sell, insisting on the usual royalty-based plan.[1] In later discussions between IBM and Bill Gates, Gates mentioned the existence of 86-DOS and IBM representative Jack Sams told him to get a license for it.
Werner - B. Gates bought DOS (dirty operating system)for 50 g's, from a hippy in Wallingford, WA (who designed it in his garage) and then hooked up with IBM to make his fortune. Bill saw the potential to be unlimited, whereas the hippy didn't. Very interesting story.
The US places more people in prison on a per capital basis than any other !st world nation.
There is something about human nature, if people wants to use drugs, you can not stop them. I suspect that we learned that in the prohibition period...
This war on drugs has been going on since the 1950s. When do we admit that we have lost this war(by the way I do not use illegal drugs).
"It will be interesting how long the present form of government/democracy survives and how long it will be before we hear the first serious calls for the abolition of âone man, one vote".
A related issue exposed by emerging crisis is falacy of "full employment" economy which IMO was a politically driven but unrealistic ideal that led to the inflation driven public policies that finally blew up. Until we come to terms with the reality that there is not enough productive work (at least drawing middle class salaries) in an efficient economy, we will not evolve beyond the current flawed model.
Average Joe, my SIL is facing a similar problem. She teaches, has been at her school for years, will be 62 next year. They have begun to make vague suggestions re her retiring lately. I've told her several times next year is it for her.
She keeps saying her local educ assoc is very strong, always supports the teachers. My response to her is that she'll be over 62, eligible for a full pension and can draw social security also if she wishes. Plus they pay a portion of health insurance for retirees.
No way will the assoc back her on this. She's gone just won't accept it yet.
If I only paid taxes for one thing. It would be for prisons.
Average Joe | Homepage | 12.19.08 - 9:23 pm | #
Kinda like the old saw about everything looking like a nail when all you have is a hammer.
LEO's tend to see everything in a context of criminality. Hard not too in that line of work. Several good books written about the dangers of seeing citizens as criminals or potential criminals. I'm sure they even handed out a couple during the academy. They aren't usually read or even discussed.
Prisons are the result of failed social programs/political agendas and a very real threat to trying to solve problems by warehousing them. Plus it's profitable and provides good paying jobs.
Comrade Kristina writes:
mmckinly, here is an article on it from the time. Now the right has picked it up and Worldnut is carrying it. When we were bringing it up we were told we were moonbats, go figure.
~~~~
The right has been sidelined, they'll do anything to get traction right about now.
It's All Corporatocracy Now Baby ... the right and the left are out of business.
Sadly, you are correct mmckinl. I've been shouting it to the rooftops for awhile. One thing Barack is definately correct about, until such time as we all work together, change is near impossible. The left and the right and everything inbetween needs to get their acts together...
"California's problem that in its political systems voters are required to make the hard choices, and they just can't do it."
As RE points out, Cali voters are not monolithic. Rob Dawg has it right, everyone gets to vote but not everyone pays. The propositions put on the ballot are engineered to exploit this seperation between choice and consequence.
"So they've been pandered to, and lied to, and now the pols are afraid to try to speak straight to them."
He also insists on running his office out of LA rather than the capitol. I'm fairly confident that that luxury costs the state vastly more than the salary he forgoes.
Anyhow California's problem, in more ways than one, is prop 13.
It simultaneously accentuates housing bubbles, gives the insane 1/3 minority party a veto over the budget, and destabilizes the tax base by minimizing the weight of property taxes.
All three of its main effects are feeding into California's recurring and current problems.
At a deeper level the problem is the bad state constitution, which can be amended by a simple majority vote giving us various bad laws (like prop 13).
"The US places more people in prison on a per capital basis than any other !st world nation"
This is CRAP. These are the SAME people counted over and over as they go through the revolving door.
A door that is heavily used precisely because it is revolving.
Even IF we have too many prisoners it is only because we have too many people willing to stick a gun to a person's side and demand money, or steal a car, rob a bank, or stab another gang member.
Remember these people aren't in Prison because they are innocent. If we have too many prisoners it's not by accident! And you don't solve it by fewer prisons! In fact, if we put more people in prison for longer we'd need fewer of them.
But this is too hard a concept for people to understand.
Prison is a symptom, not a cause. You don't reduce those who deserve prison by reduce prison space.
Every druggy in prison is only there for drugs because they couldn't catch him while he was burglarizing your house or stealing your car. They are burglars for 5 minutes a day...they are druggies ALL day long...
Try supporting ONE druggie on your salary and you'll realize these guys are NOT paying for their own sh#t. It's coming from you one way or another.
We're dealing with this kind of news in WA state. I work at a state university library, and we're all stressed and dreading what cuts will be announced for us.
I plan to use any forced days off to work on home food production. We have a huge garden, and the more I can harvest & preserve, the less cash we need to spend on food.
I also brew beer, wine, cider & mead for the household, which saves a few pennies too.
Until we come to terms with the reality that there is not enough productive work (at least drawing middle class salaries) in an efficient economy, we will not evolve beyond the current flawed model. Comrade V | 12.19.08 - 9:29 pm | #
I agree. In essence this is my point. There will not be enough productive work and therefore fewer and fewer tax payers. The period where there is work for everybody has passed. The question is what political and economic system will emerge when this realization sets in.
Has anyone heard that Paulson & Co dropped the 'martial law' bomb to get the $700B?
Yup, and if there were any justice in this world, President elect Obama would return the favor by calling a closed door meeting of Congressional leaders, the FBI and his transition team.
The subject of the meeting would be an unspecified "rumor" that Paulson was caught on tape selling TARP money to his cronies at Goldman Sachs.
Paulson would then be asked to resign immediately and give the money back or face immediate indictment.
In 2007 heard the signs that had martial law on them was taken to DC.
The Driver of rig called his dispatch, she called The Radio Station, and was diconnected as soon as she stated what was going on. It was as if the call never happened. Yet I was lisening and e-mailed a friend.
Try supporting ONE druggie on your salary and you'll realize these guys are NOT paying for their own sh#t. It's coming from you one way or another.
Average Joe | Homepage | 12.19.08 - 9:36 pm | #
The burden is real but you are responsible for keeping a balanced perspective to the society you protect.
Sounds like you should be advocating more treatment. $50,000 a year will pay for many social programs that will help change a fellow human being's life. Prison is a failure not the solution.
"The US places more people in prison on a per capital basis than any other !st world nation"
This is CRAP. These are the SAME people counted over and over as they go through the revolving door.
No, it's the percentage of population in prison at any given time. We are totally off the charts compared to any other developed nation.
Every druggy in prison is only there for drugs because they couldn't catch him while he was burglarizing your house or stealing your car.
We all know the equation - if drugs are illegal, people commit illegal acts to get them. If they aren't, they don't. If marijuana or opium were legal, there wouldn't be people stealing to get them, just as they don't for alcohol and cigarettes today.
And, no, there are a lot of people in jail for drugs who have not committed violent crime or burglary. I know two people who got sent to jail via sting operations.
Look for a higher and stronger safety net with reductions in working hours and retirement benefits. mmckinl | 12.19.08 - 9:00 pm | #
And probably less total wealth in aggregate but a more even distribution of what wealth there is.
I think that is where we are heading politically today - willing to accept less in aggregate to be certain we [each of us] gets something individually ourselves. It is a huge 'c' change from where we were 10-20 years ago but not unlike where we were in the past - say 40s and 50s. Things cycle.
It seems CA's fiscal problem is the unions. While their numbers aren't that high outside of the city and state govt, its a mess dealing with the state deficit. The unraveling should show who the real incompetent politicians are.
"Philosophers should consider the fact that the greatest happiness principle can easily be made an excuse for a benevolent dictatorship. We should replace it by a more modest and more realistic principle / the principle that the fight against avoidable misery should be a recognized aim of public policy, while the increase of happiness should be left, in the main, to private initiative."
"Prisons are the result of failed social programs/political agendas and a very real threat to trying to solve problems by warehousing them."
I almost agree 100%.
Warehousing them though we are not doing. We are sending them there temporarily just long enough to make their coming back into society impossible.
If they were truly warehoused, they'd be unable to get out, procreate, commit more crime, recruit others, and stand as example to their community that there are no consequences.
There are alot of reasons that we have so many people that belong in prison...but that doesn't make them any nicer or safer, and it isn't because we have alot of prisons.
Trust me, by the time they get to prison...the vast majority have been arrested many times and have committed themselves to a life of crime.
"We all hope and pray that we don't lose 3% at 50 retirement...but I don't see how they don't try to take it away...it amounts to a back breaker for the taxpayer longterm."
As a North County resident I am standing up and applauding your frank honesty. A taxpayer thanks you.
Solution very simple, phase it out over time. No one who accepted the employment bargain should lose a vested right but new employees should be recruited/hired based on more realistic expectations. We have to dissolve the inequality between public/private sector retirement liabilities.
I think that is where we are heading politically today - willing to accept less in aggregate to be certain we [each of us] gets something individually ourselves.
"From each according to his ability, to each according to his need"
Anyways, thanks for your info. and sorry if I rag on you. Its hard to tell sometimes whether you are giving short-term or long-term calls.
Now, mainly medium to long term.
Look, I'm as bearish as anybody here on the economy and stock market.
But I cashed out the last of my ultrashorts today, because they just aren't working and they make you edgy with the short-term fuse.
Everything is being driven by Fed liquidiy now, and you almost have to guess where the Fed will be pumping liquidity next week, if you have a short horizon. I mean, of course they'll be pumping on the SPY, but what else?
I decided to exit that game. I actually still have single short ETFs in small-caps and emerging markets, but I'm prepared to hold them until the market tanks a good deal more, probably in Feb.
I just feel in my bones at some point gold is going to $1,500, oil to $75, and silver to $20. I can wait. Hey, at zero percent interest, we all can afford to wait.
At a deeper level the problem is the bad state constitution, which can be amended by a simple majority vote giving us various bad laws (like prop 13).
jefff
Prop 13 is the only law that keeps the State from taking property from the poorest by raising taxes on property. There are a lot of poor homeowners and there will be lots more soon.
It is a good law. Read the history of it. There is a valid reason for it being on the books. It keeps the State from putting people out on the streets.
RE writes :
...I have long believed that there will be a breaking point even in developed nations where labor is in overabundance. The addition of huge labor pools in the 80s and 90s to the world economy has already lowered or at the very least held wages steady. In addition, tremendous advances in automation have reduced manpower needs in ever more job sectors.
With all due respect, I beg to differ.
Isn't yours a rather "static analys".
Don't you overlook that there is something like "technical (and other) progress"? With that I mean that people do something and, since you can not prevent them from learning, improve their methods (sometimes by employing tools which then need to be made and generate new jobs, partly compensating the joblosses created by the improved methods) and eventually "freeing up" people to do other/new things. Sure, it takes time and effort to find these new things, and the transition is not without pain, but it allways occurs.
The societies in 1900 were basically agriculture (70% of all jobs). Today, probably 3% are in agriculture and the huge majority today earns a much better standard of living doing things the people in 1900 could even not imagine. So, what happend? The people freed up doing one task just switched to doing other things. The "games played" between 9 and 5 o-clock just changed (from harvesting potatoes to whatever you do today).
So, the system actually is "dynamic", and the real game is that the game always changes until human imagination is exhausted.
So, the only thing being constant is change.
I think that is where we are heading politically today - willing to accept less in aggregate to be certain we [each of us] gets something individually ourselves...
~~~
I hope so, the alternative is a third world country where noone wins ...
The real trend I see is less and less freedom. We've given up control of our lives for the illusion of security.
I could list a litany of reasons and rest stops along the slippery slope, but it all boils down to the fact that the average "born and bred dope" (tm Jas) doesn't want to fight for their freedom.
We've grown too comfortable, and too affluent to fight back.
cs, I don't disagree. I just grow weary with the "Socialist" bashing, especially by "Christians". I have to believe in my heart, somewhere in the middle there is a compromise that works for all.
Prop 13 is the only law that keeps the State from taking property from the poorest by raising taxes on property. There are a lot of poor homeowners and there will be lots more soon.
If you think the poorest own real estate anywhere in the US, never mind overpriced California, you lead a very sheltered existence.
AJ, there's an old saying, "if you're a hammer, every problem looks like a nail."
My wife worked as a guard (before my time) at Terminal Island, Long Beach. She knows what you speak of, and for a lib blows all of her friends minds when she spreads her hawk wings over death penalty.
But she (and I) both believe criminalization and prison system for non-violent drug offenders is self defeating because of the black market it creates. If drugs are not illegal, but simply regulated, crime to acquire drugs vanishes. Even the Cal Prop that failed this year (see prior post) assumed that if you netted out costs of rehab with costs of continued incarceration, you still saved billions in capital outlays.
I understand how you feel, criminalization is dehumanizing and you guys are on the front lines of dealing with the monsters that society creates. Lets stop the paying to creating and waerhousing them. The war on drugs has been a failure for decades.
rich writes:
Going back to the last thread about commodities and precious metals, I'd like to say that I really do value the consensus opinion on this board. So, if several informed regulars think gold will tank, I do consider what they are saying.
The corrupt and manipulative credit expansion has disrupted the economy and the markets so much on both the upside and downside that a good case can be made for either inflation or deflation, and I've decided to put aside what "I think" will happen and instead let the market decide, using a general buy-stop concept, in the case of gold for example, with 2 closes over 1000 being the buy decision.
After what our monetary idiots have just done, it seems to me gold for one is going to either $50 or else $5000, and I can reason that either way. Movements between $700 and $900 can be traded off the charts with no big decisions needed.
Isn't looking at the monthlies maybe the best thing to do in the deteriorating environment left to us to us by the bungling fedicrooks?
Doc at the Radar Station - great quote from Popper.
My grandfather had a battle royal with Popper in the late 40s. Granpa, as a Prof of mechanical engineering, thought he was a fool, a fraud and a pseud. Thought some of the visionary stuff was ridiculous, and that he'd moved waaaay too far from evidently valid hard empiricism and the natural order of the superiority of revealed truth of hard sciences vs the nuance of historicism, due relative perspective, and (horrors!) commenting on the interface of science and political economy...
Granpa was delighted that I was heading into academia in the early 90s before he found more time to be with his soul.
Social reform is for idiot philosophers, faux savants and those seeking positions of power in government.
Reform happens in cycles. Two steps foreward and one back. Reform doesn't necessarily mean progress. Reform can also mean the loss of freedoms. But freedom can sometimes be only indecipline.
Decipline is wanting today. Where there is no self decipline, society will eventually impose it.
The death spiral will continue with an aging civilation. They do not die overnight. Sometimes they take centuries.
Rome was corrupt in 46 BC. It lasted another 500 years.
I don't think legalizing drugs (except marijuana which I think should be legal) will help. It hasn't anywhere else. You will definately get less people in prison for drugs..but it will be the same people, only arrested for other crimes to support their drug habit.
If drugs are legal, they still aren't affordable...especially for a unproductive druggy. They will commit crimes to support their drug habit. Meth users will commit violent crimes as their brains get destroyed. For many druggies, they may as well be legal. They do so little time for them. Prop 36 in Calif basically has legalized drugs for most and it's been a disaster.
Drugs are illegal because of what they make people do. Legalizing drugs won't change the effects drugs have on people.
CC, were gangs dealing in Coca
Cola back then? I'm guessing not, the local Fountain Shop handled it...People as a collective lose knowledge from generation to generation.
Certainly if addictive drugs are expensive, then most people who use them will have to commit crime to support their habit. In the situations where using drugs has been legalized, or 'almost legalized', I think the suppliers are still criminalized, and drugs are still quite expensive as a result.
I am not sure we've seen too many experiments where countries or states have legalized the entire drug supply and use chain, and drugs are relatively inexpensive - like cigarettes today, say. What do you think would happen in that kind of environment?
If drugs are legal, they still aren't affordable...especially for a unproductive druggy.
That's flat nonsense. The common drugs are all cheap when legal, and even the destitute can be addicted without serious criminality - winos in the US today; opium smokers in 19th century china; hashish smokers in India; coca leaf chewers in the Andes.
mmckinl writes:
Werner...Gates invented nothing ... the code was someone elses ...
Gates just practiced predatory pricing and drove everybody else out.
No, definitely not! As I said, he later did buy the rights (yes, including the then existing code) of an operating system from IBM (which owned that code because it had bought the company who originally wrote that code) and greatly extented that into a usable operating system to be called DOS. He and (heaven I forgot the name of the other guy) coded day and night to make it into DOS, which has since been continuosly extended to Vista.
If you think he did that in a kind of cheap way, read up the history. Lots and lots of hard work, some god luck and plenty good desicions was it. No trickery! Belive me, I worked then for a "kind of" competitor to him (not really competitor because we goofed that up, without becomming too clear and preserve a little anonymity), but it was hard, decent honest work.
I suspect what's wrong with some of you here (and probably too much americans today) is the notion that you need to make a quick buck and just trick or cheat in some way. Usually (99%), that quick and cheap (i.e. effortless) route fails!
We have the same thinking regarding prisons and the war on drugs. Many law enforcement personnel in my family. Makes for interesting get togethers.
Cops see the problems but know they can't change the conditions. After a while they become resigned and go through the motions and wait for retirement. Just like most of us. Downside for them is they will be asked to do more with less and be on the frontlines when things go badly.
I am not sure we've seen too many experiments where countries or states have legalized the entire drug supply and use chain, and drugs are relatively inexpensive - like cigarettes today, say. What do you think would happen in that kind of environment?
Opium, marijuana, and cocaine were all legal and widely used in patent medicines in the 1800's in the US. Associated criminal activity was rare.
werner, good commentary. Thanks for the insight and the honesty. Sometimes truth is inconvenient to a worldview driven by ideology or principles - whatever you call fixed preconceptions - rather than by the bare facts.
"[Prop 13] is a good law. Read the history of it. There is a valid reason for it being on the books. It keeps the State from putting people out on the streets."
The reason for Prop 13 is because property owners lost trust in the State's ability to equitably balance the competing interests. When property owners believe their interests are not being sacrificed simply to protect public employees, then maybe the attitude will change. No idea how to make that happen.
Most Westerners have the perspective of a frog. Our lower educational system has been a failure for at least the last 50 years. It started with school district consolidation and teachers unions but with other factors as well. The new education person in Obama's cabinet presides over a school district that spends almost $13,000 per student per year. What a disgrace.
My wife's Montisorri nonprofit educates students for $6,750 a year with IB and AP success rates of 86%. And yes, these are ordinary kids whose parents value education and make financial sacrifices for the sake of their children.
OK, the perspective of a frog is good for a generation and may be useful for survival day by day but is a poor concept for governing a nation.
I reserve judgement on Mr. Obama but seems to me that he is hiring cronies and the 'old' gang and charging them with making changes. Leopards and spots.
If drugs were very very cheap, (as Faireconomist points out) then I think that this would go along way to helping reduce the crimes. However, not for drugs like crack or meth. These are simply too destructive and dangerous. However, if there were safe alternatives that were cheap and available then cool. Perhaps their availability would crowd out demand for the other stuff.
In countries that have legalized drugs, they still have very high crime rates in those areas (like burglary, rape etc). But society is more able to isolate them.
My brother in law had a job and was a meth addict and was able to be crime free as long as he supported his habit. But then he went overboard, couldn't work and then he blew his brains out one day coming off a three day binge. So, I can see a need to keep dangerous drugs illegal regardless of a druggy's ability to pay.
I have had meth addicts torture a 4 year old girl to death (Jenny Rojas case in Chula Vista...google it). So as you can see dangerous drugs are illegal for a reason.
We have drawn a line between alcohol and the rest. There is no reason we can't draw the line further into drug terrritory and legalize opium and pot. But we have to draw the line somewhere.
I know quite a few transients who burglarize homes to buy booze...booze being cheap and legal doesn't stop them. So it's no easy answer.
Thanks Fair Economist. Do you happen to know, even roughly, what the overall population's addiction rates were in the examples you gave of entire countries that had fully legalized drugs?
What I am trying to understand is: If the criminality was low, was the unarguable damage to society (in lost human potential and productivity etc) very high, or medium, or low?
"If you think the poorest own real estate anywhere in the US, never mind overpriced California, you lead a very sheltered existence."
I believe his comment was relative to others in California. Unless you are famaliar with Cali, it is huge and diverse, and the folks in the back country live a very different life than what you imagine based on coastal metro areas. Try visiting Hemmet, e.g. Ever been to Baker (not Bakersfield)?
I mention Meth and Crack because those are, in reality, the only drugs that are filling the prisons with criminals.
FairEconomist has a point...but Im sure he only learned how it "used to be" from reading a book. Go on a ride-along with a cop someday...you may be shocked at how others very close to you are living their day to day lives...and when you see the children and how they have to grow up, you'll want to throw their parents in jail just for being terrible parents.
AJ, I appreciate your distinction between drugs that are likely to make users dangerous to others, and those that are not.
I would support a redrawing of the line, in hopes that your theory of cheap,legal, 'good' drugs crowding out the worst ones would work better than what we have now. I'd love to see more dispassionate analysis of the options, with states allowed to experiment so we can all find the optimal place to draw that line...
Trust me, by the time they get to prison...the vast majority have been arrested many times and have committed themselves to a life of crime.
Average Joe | Homepage | 12.19.08 - 9:52 pm | #
So, the system actually is "dynamic", and the real game is that the game always changes until human imagination is exhausted. So, the only thing being constant is change. Werner | 12.19.08 - 9:58 pm | #
Werner,
I don't actually think so. Automation/robotics is a game changer that outmodes human ability. I simply cannot see human ability keep pace with Moore's law. Your version of events will only happen if "artificial evolution" is constraint. I personally don't bet on it.
Being a saver I was very long the dollar most of my life. When the evidence of massive fraud in the system began evident to me I looked for alternatives. If gold takes a massive dive I deserve to lose and it will be painful....
tg is a born and bred dope in | 12.19.08 - 8:48 pm | #
tg, word
in the long run, i believe you are right...hang tight
The argument over the war on drugs boils down "how do you want to spend the money?". Enforcement and prisons or treatment and subsidizing.
I vote for the latter. Legalize, set up drug zones with free drugs, treatment, housing and let them either recover or die. I would bet my last dollar it would be cheaper and drug use would fall overall in society.
Take away the lure of something being illicit and you take away much of the lure for the teens. Add in the shame that will end up being associated by ending up in the drug zones and you will cut down the gateway into drug addiction. Crime is a symptom of drugs being illegal.
Yes, some meth addicts torture small children. Some non-meth addicts do too. But the vast majority of even meth addicts aren't violent. I have (unfortunately) met several meth addicts and none were violent or criminal, even when broke, begging, and psychotic. Even with meth most users remain functional productive citizens, and most of those who don't are not dangerous violent criminals. It's inaccurate, wasteful, and inhumane to treat all of them as like the small minority who are serious problems when addicted - just like treating non-meth users as child torturers because a small minority are.
Some drug addicts of all types commit crimes and they should go to jail - just like criminal non-addicts. But the occasional wino burglary is not a serious threat to society. The Prohibition era mafia or the current Mexican drug lords are a threat to society, and we get more petty crime with Prohibition anyway because of the raised cost of the drugs.
RE, werner is, I think, right about the endless human capacity for invention and the endless nature of change.
I've been a student of history for over 30 years, and this is one lesson I have learned over and over again - that change is forever!
Even in my own lifetime, I grew up in a Europe split in two by an apparently permanent wall - gone. China was that hostile, ideological, and economically backward sleeping giant in Asia, and would always be thus -transformed.... There's lots more.
001 writes:
...and then hooked up with IBM to make his fortune.
NO! Definitely not. He did not hook up with IBM, he bought it from IBM who owned the code (and possibly that company who wrote that code). It is correct that IBM did not write any of that code, nor made it any modification. But dealing with the top of the Fortune 500, IBM did not see the potential for a "personal computer market. (The stuff was then just seen as an play-toy for amatures and nerds, not professional IT stuff, I know!)Nor did IBM see the potential for the internet, although it had powerful own telecommumication facilities for its mainframes. An IEEE journal whose detailed name I forgot (it was the general one w/o a specific topic) once provided an excellent treatment of that history.
Average Joe and Fair Economist, you seem to have somewhat different views of the behaviors of the users of certain particularly nasty drugs, both based on real anecdotal or statistical sources.
But are you agreed that a rational way to manage drug use better would be to just objectively measure the rates of different types of bad behaviors for users of different types of drugs, and use a strict cost/benefit-type analysis to help us decide which drugs to fully legalize, and which ones to keep away from everyone?
"NO! Definitely not. He did not hook up with IBM, he bought it from IBM who owned the code (and possibly that company who wrote that code)"
I suggest you have it backwards, Gates licensed it TO IBM for use in its first PC. In the singular biggest business mistake IBM ever made, they agreed to pay a per copy royalty instead of a fixed fee. That was the making of MS. When IBM tried to introduce their own OS years later to compete with MS/DOS, they found they couldn't wean the DOS users away.
RE, werner is, I think, right about the endless human capacity for invention and the endless nature of change. patientrenter | 12.19.08 - 10:59 pm | #
I am not disagreeing with his premise. The human race is quite adaptable. However, from my perspective it doesn't stand a chance to compete in the technology race, i.e. with Moore's law. Hence my point about the "commoditization of labor". You can observe that very easily today in manufacturing as dryfly points out time after time. The real number of jobs are not anymore in manufacturing but in white collar. Automation and robotics have caused a displacement further up the intelligence scale. It is now a race.
If a computer can beat a chess champion one on one whereas when I started in the biz that was considered a fantasy, realizable but very far in the future. Playing chess takes a high form of "intelligence". Most humans do not have that level of readily implementable intelligence. However, in the automation field that level of intelligence is a cheap commodity item worth a few dollar and replicated at ease.
If the guys running the snow plows on Hwy 80 have to take days off on days when there is a big dump. Get ready to go hungry Northern California.
We decided to take 80 back to the cabin after shopping and wow! Miles of trucks were lined up putting on chains to get over the pass. It is informative to watch the steady stream of trucks on 80 from the comfort of our living room.
The CHP was very busy last night with accidents due to blowing snow reducing visibility and stupid drivers over driving their headlights and also not being aware that around 4pm the road slush starts freezing again. Great idea make the CHP take days off.
I bet the workers are hoping that the days off are Friday and Monday.
But are you agreed that a rational way to manage drug use better would be to just objectively measure the rates of different types of bad behaviors for users of different types of drugs, and use a strict cost/benefit-type analysis to help us decide which drugs to fully legalize, and which ones to keep away from everyone?
Of course. Realistically, I think the only one we'll get legalized in the near future is marijuana - which would be a big help; if that's all I can get I'll take it. The demonization of other recreational drugs is too extreme. For meth, there's even some truth to the demonization.
I suggest you have it backwards, Gates licensed it TO IBM for use in its first PC. In the singular biggest business mistake IBM ever made, they agreed to pay a per copy royalty instead of a fixed fee. Comrade V | 12.19.08 - 11:08 pm | #
You are exactly correct though I think that the single biggest mistake was made by Gary Kildall from Digital Research (as pointed out above) when he snubbed IBM. CPM-86 was a much better and vastly more mature operating system than QDOS and reasonably well tested by then. I used it for quite a while.
Average Joe:
Opium is grown in Afghanistan and the Golden Triangle near Burma.
Cocaine is grown in S.America. In both average wage is maybe $2/day. Both grow very easily. Cost to produce almost nothing. Most addicts don't want to steal etc, they just want to get drugs to reduce their craving.
That they are forced to steal or whore and have such a degraded life is because of the power trip you and your fellow moralizers are on. Self appointed Guardians of right and wrong.Get your nose out of our butts. Our bodies are are own business, not yours.
Drug addiction is a physiological problem, not a moral weakness. At one time it may have been correct to limit exposure to drugs to protect those prone to addiction. But that time is long past.
If you are looking to protect the public get sodium out of our diets. Ban fructose-based sweeteners. Both are KNOWN disease causes. Metabolic Syndrome, Obesity and Diabetes are a huge public health problem.
And IIRC Gluttony is a mortal sin
But McDonalds and Cokes are the addictions of the Moral Guardians
zendiet - I have no objection to you arguement in theory, but Average Joe is not to blame. He merely(?) upholds the laws of the land. Your arguement is more correctly directed at our legislators.
Average Joe: as much as we may disagree on the single issue of drug policy, I too echo thanks to you and your collegues for your valued service. And the troubling times notwithstanding, may you and yours enjoy the best of holidays.
Boss stamping feet impatiently for movie to begin.
Well, since I actually work for the University of California, I have a couple items to add to Arnold's list. First off, all UC professors with tenure and administrators should take a permanent 10% pay cut starting immediately. All merit increases should be frozen immediately for all UC employees with security of employment (tenure, contracts). All UC employees making more than 200k per year should have pay over 200k withheld to shore up the UC pension fund. BHO would agree, as 200k appears to be his magic number too. After all, those UC folks helped BHO get elected, so they should me more than happy to help. I personally know several professors who make over 200k per year, and it's actually quite common across UC. Many of these professors don't even grade their homeworks for God's sake. Perhaps these pay cuts will help the professors look more closely at the impact of California's liberal fiscal and social policies over the past decade. California is a virtual sanctuary state to 3-6 million illegal immigrants, who receive food stamps, daycare, medical care, babies delivered for free, subsidized housing, subsidized utility bills, and education. It's time for UC to pay for what it supports.
How will California survive? Fine employers of illegal immigrants $25k per hired illegal, per year. Go ahead and let them work, but be prepared to pay $25k per year to cover the cost of their entitlements, regardless of their pay. Deport all illegal aliens in jail or prison in California immediately. Require English competency of all foreign-born California citizens and alien residents (Arnold would agree). Give illegal immigrants $5k to deport themselves, and establish verifiable residence and employment in their home countries. Allow them to apply for citizenship legally in the normal manner that all other legal immigrants must follow. Ban all illegal aliens from purchasing homes or owning land in the State. Give illegals driver's licenses (never though I'd say this), and require yearly in-person check-ins with the DMV to verify continuous automobile insurance. Make illegal aliens permanently responsible for abandoned debts, without possibility of bankruptcy or debt forgiveness. Garnish their wages for all debts delinquent more than 6 months. Fine all illegal alien workers $2k for entering the State illegally.
Thank you. I actually lived in California for 9 years, and I still work for UC. I have a unique perspective, and people here should listen to it rather than try to silence it due to their own to uncomforts about the subject. Offer a rebuttal with facts. Spare me the prose.
Unions are going to love this one.
Will he lead by example?
Huzzah.. time for vacation in Vegas.
Once this downturn really gets going where do the governments begin to cut. I was doing some recent reading on which the zeal of enforcing Prohibition waned then died as the GD really got going in 33. How does the war on drugs fare as this goes forward? How much money is spent yearly on that fight that might not be available?
How's that any different than current schedule of working 1/2 a day then taking the year off?
Oh, unpaid...
So much inflationary news on CR today!
I'm sure the feds will print money to rescue all the states though. What will that tab come to?
Somewhere in San Pedro, Gray Davis is doing a little jig.
Is the governor a state employee? Oh! he's already working less than 40 hrs ... doesn't apply to him.
No way does this actually happen. I bet the stimbamalus package throws more than a few billions to the states.
Pay cuts better than layoffs, no? It seems there's a consensus forming in the land...
If they don't want to cut during bad times, they should not splurge when the tax revenues go up.
No banks went belly up this afternoon?
Government spending used to be the one thing that people could count on during a recession. Being the lender and spender of last resort.
If 10% of the state workforce gets cut, and the remainder get 10% paycuts, CA is in a depression. I doubt it happens in this manner. Brinksmanship.
How many people could afford to live with a 10% pay cut when people are struggling now?
A lot of couties and cities werev already doing this ...
Everybody goes broke slowly rather than some people alll at once ...
I could live with a 25% paycut, and I make like 1/10th what you mandarins make.
On the Clock --
Yeah, it's the whole wage/price spiral in reverse.
Pretty soon, not only will you get paid less, but also the money won't buy as much. That is called "Keynesian policy response".
I guess 5-6 weeks of vacation time for state employees is enough.
They want the cash!
Bring back zero based budgeting process for state agencies.
Nemo writes:
No way does this actually happen. I bet the stimbamalus package throws more than a few billions to the states.
krugman has been pushing this for a while, as instant gratification keynesianism.
nemo, are you really Prof. krugman?
Jeff,
How do you know what we all make? Also, I am sure many could survive with a 10% pay cut, but I am guessing the majority of CA state workers are not included in that group. I am sure foreclosures would increase, and bankruptcies. Spending would go down, business incomes...
Pretty soon, not only will you get paid less, but also the money won't buy as much. That is called "Keynesian policy response".
~~~~
And there is still 50 trillion in aggregate debt looming out there.
You can find management salaries for all CSU and UC managers online very easily google is your friend.
Empty threat. By Feburary the State will be illiquid. Actually They don't have enough for January so a Feb threat is doubly hollow. Sacramento is still clueless, they just don't understand the electorate. I take that back, they unstand the electorate, they vastly misunderstand the taxpayer. In California like few place else those are not congruent. Those of us who pay are not going to pay what they expect. The Golden State is planning on killing the Golden Goose.
rob gawg,
I'm with nemo, The Obama admin is going to shovel money to the states
10% pay cuts. Isn't that deflationary?
But if we took this opportunity to cut drug prosecutions and reduce the prison population maybe something good could come out of this.
Rob Dawg
The whole US is going down ... not just Cal.
Obama will find money for Cal. Nancy will make him. The problem is once that runs out.
nemo, are you really Prof. krugman?
Yes! I'm also Nouriel Roubini, Joseph Stiglitz, and Peter Schiff. And Larry Kudlow.
(Have you ever seen two of us together at once? Case closed.)
The work will get done, the workers won't be missed, and we'll wonder why they ever had to show up all those extra days.
By floating a notion like this, doesn't Arnold decrease consumer spending just by creating fear? The state employs massive numbers of people that are addicted tothe stability of their jobs. That's the main benefit of working for the state.
I thought Schwarzenegger decline a salary.
Here's a link to the letter to state employees:
Cutbacks
Part of this is a negotiating tactic. This will end up as an either/or. Will the unions prefer pay cuts for everyone, or layoffs for a minority? Sophie's choice.
By floating a notion like this, doesn't Arnold decrease consumer spending just by creating fear?
~~~`
He creates fear in legislators as well.
How does the war on drugs fare as this goes forward? Seeeing as how the DEA has become institutionalized, and too many jobs depend upon its support, as well as prison guards, counselors, parole officers, no reduction in the war on drugs will occur until there is a reduction in the dominant puritanical attutudes under which this country labors.
dr munch(Unrated) writes:
\tThe work will get done, the workers won't be missed, and we'll wonder why they ever had to show up all those extra days.
dr munch | 12.19.08 - 7:55 pm | #
Hey don't talk about our off-shore coding team like that!
reptillian writes:
Is the governor a state employee? Oh! he's already working less than 40 hrs ... doesn't apply to him.
Isn't he already working for a symbolic pay of 1$ anyway ?
So, what's the blind hatred ?
Wage and benefit concessions will be widespread by the end of 2009, I'm convinced.
As a liberal, I have no problem with a 10-25% pay cut (want you to know I fired myself and now unemployed).
Among the long tern changes that must be made, Is that no one retires after 20 or 30 years. CA should turn over to SS all funds and that all CA govt employees must comply with the standards of private citizens...
Welcome to the future...
How many people could afford to live with a 10% pay cut when people are struggling now?
God Shammgod | 12.19.08 - 7:47 pm | #
For government employees, adjustments would be made. The key value of any gov job is the healthcare and pension.
rob dawg,
I'm with nemo, The Obama admin is going to shovel money to the states
billyboy | 12.19.08 - 7:53 pm | #
Absolutely. California needs $20b to carry through to April tax reciepts. Just exactly what guarantees do we need to make? The problem isn't revenue, it is spending. There literally isn't enough money to deal with California's structural problems.
001 writes:
How does the war on drugs fare as this goes forward?
War on drugs is an instrument of oppression at home and abroad. It will be used to strike fear into marauding mobs
Wage and benefit concessions will be widespread by the end of 2009, I'm convinced.
~~~~
And there still will be $50 trillion in aggregate debt looming out there.
Blackhalo
especially in Kah-li fornia where the housing is getting so cheap
"Those of us who pay are not going to pay what they expect. The Golden State is planning on killing the Golden Goose.
Rob Dawg | Homepage | 12.19.08 - 7:51 pm | # "
Nobody's presented the voters with hard choices in years -- golden goose is the wrong metaphor. Having your cake and eating it, too, is the right one. So they've been pandered to, and lied to, and now the pols are afraid to try to speak straight to them.
And it'll take a bigger man than Arnold to do it -- or woman. We'll just go down the tubes until the pain gets big enough and the electorate, shocked out of their blissful stupor, will see things clearly and make a decision. Which may be different than what either you or I might hope for.
Max writes:
Sophie's choice.
I would've gassed them both.
Nancy will make him.
mmckinl | 12.19.08 - 7:54 pm | #
There are an awful lot of new incoming congressmen. Does Nacy win?
This will spur borrowing - the desperate, cash advance on the credit card type borrowing. These folks live paycheck to paycheck and can't afford a dip in income.
Will the unions prefer pay cuts for everyone, or layoffs for a minority? Sophie's choice.
Based on my experience, unions will accept layoffs and early retirements for the few to protect wages for the many.
At the local level there are many bargaining groups, and they don't play nice together. They throw each other under the bus.
There are an awful lot of new incoming congressmen. Does Nacy win?
~~~~
Put in during conference, like Gramms' CDS debacle.
stfu writes:
001 writes:
How does the war on drugs fare as this goes forward?
When the times get tough, the tough get going...Feds and CA will legalize drugs and tax the H*ll out of it...unless it is sold on the internet, which will be the next to be taxed...
"Anonymous writes:
As a liberal, I have no problem with a 10-25% pay cut (want you to know I fired myself and now unemployed).
Among the long tern changes that must be made, Is that no one retires after 20 or 30 years. CA should turn over to SS all funds and that all CA govt employees must comply with the standards of private citizens..."
I'm a liberal, too, and the retirement is all that makes some of those jobs worthwhile. I work in the UC system -- Deflation Jane, you around here, too?
Yeah, the hourlies and the admins are here for the health care, but the analysts and department managers and mid-managers, the 20-year-guys, are here for the retirement. Take it away, and they'll leave as soon as there's something else to leave for. University pay is pathetic.
And then they'll have to raise the pay and... what have you gained?
I agree that a fully-funded public pension/medical plan should replace all private plans. But until that's in place, don't expect to take the private gov't plans down. Not happening.
now the pols are afraid to try to speak straight to them.
Bob Dobbs | Homepage | 12.19.08 - 8:00 pm | #
What? When did it start? Oh, Biden.
stfu writes:
001 writes:
How does the war on drugs fare as this goes forward?
When the times get tough, the tough get going...Feds and CA will legalize drugs and tax the H*ll out of it...unless it is sold on the internet, which will be the next to be taxed...
And governator will outlaw prison gaurds union!
Ahhnold does not draw a salary from his job as governor...maybe we got what we paid for...I just wish he could pronounce the name of our state correctly....
"When the times get tough, the tough get going...Feds and CA will legalize drugs and tax the H*ll out of it...unless it is sold on the internet, which will be the next to be taxed...
Anonymous | 12.19.08 - 8:03 pm | # "
Been waiting for that for 20 years. Legalize it, tax it, regulate it. $10/pack tax on a pack of fatties would just about take care of business.
It is one giant TRAIN WRECK....No one will be saved!
Train Wreck - Video
What happened to the rainy day fund where they accumulated reserves from the dotcom/Y2K bubble and the massive housing bubble ?
How does the war on drugs fare as this goes forward? Seeeing as how the DEA has become institutionalized, and too many jobs depend upon its support, as well as prison guards, counselors, parole officers, no reduction in the war on drugs will occur until there is a reduction in the dominant puritanical attutudes under which this country labors.
001
Many states are going to be forced to release the 'user' druggies put in prison for long terms because the cost of prisons isn't tolerable in bad times economically. This is to the good, IMO, because prison has become a business and major occupation that is probably negatively productive to society.
The prison guards (and the cost of prisons) are going to object, and they have the testicles of the male legislators and the children of the female legislators. I'd bet 30% of the prison population could be released or released into drug programs without a blip of public security.
CA will have to go BK to get out from under the Corrections contracts. It would be soooooo worth it.
American Honda cancels "2009 Honda Hoot" due to economic uncertainty. FYI, the third-largest annual motorcycle rally in N. America. The Hoot is one of Honda's biggest sales events in the US.
This comes after announcing no new models and pulling out of Formula I racing and they're considering pulling out of Moto GP racing. Sport motorcycle sales in the US revolve around who's participating in Moto GP.
See "Road Racing World," December 19, quoting press release.
Does anyone sense a problem here?
A Honda spokesman in Japan said, "More than we imagined, the economic crisis has had an influence on what we do."
See "Motorcycle News," December 9, 2008.
What happened to the rainy day fund where they accumulated reserves from the dotcom/Y2K bubble and the massive housing bubble ?
bearly | 12.19.08 - 8:06 pm | #
Coke and hookers.
mmckinl writes:
...And there still will be $50 trillion in aggregate debt looming out there...
btw, how do you guys pay that down?
Any serious plans ?
(serious, I said, not the typical CR-blog crap of e.g.: never, etc. )
What happened to the rainy day fund where they accumulated reserves from the dotcom/Y2K bubble and the massive housing bubble ?
~~~~
Enron took it all and then some ...
God Shammgod | 12.19.08 - 7:56 pm
Good point.
Supposedly people have been sitting on the sidelines as far purchasing Christmas presents. So in the last week or so we have heard:
Chrysler is toast. All their suppliers know this. The people working in these plants see the drops in what is going on. GM same. Nissan and Toyota down south are seeing the same thing.
The Hedge fund and Madoff is not going to register. The MSM which is doing stories on the billions going to bonuses will.
The CA 2 days without pay will definetly register. Since CA is so huge retail sales will feel it. Almost every state and county employee will be paying attention.
My translation: Retail is really, really going to suck. So will the loss of those sales taxes.
I'd bet 30% of the prison population could be released or released into drug programs without a blip of public security.
JimPortlandOR | 12.19.08 - 8:07 pm | #
I dunno. I expect the newley unemployed and the newley released to be a bit more than a blip.
Coke and hookers.
Nah - that's New York. In CA it's raw food retreats and meditation labyrinths.
Werner writes:
mmckinl writes:
...And there still will be $50 trillion in aggregate debt looming out there...
btw, how do you guys pay that down?
Any serious plans ?
~~~~~
No and No ... default and inflation ...
Bob Dobbs,
With our collapsing economy, we do not have a choice. I understand that as a university employee, you will screwed, however we will/are all getting screwed, whether we like it or not...
All I am saying is that you will take a direct hit or a glancing blow...No one is going to be un-affected...
It beats starving and shelter less/homeless.
We'll know a lot more about California in January, after the 1st installment of property tax has been distributed to cities, and Q4 sales tax has been tallied.
Sales tax revenue is already in the toilet, auto sales being the bulk of it.
Going back to the last thread about commodities and precious metals, I'd like to say that I really do value the consensus opinion on this board. So, if several informed regulars think gold will tank, I do consider what they are saying.
I think they are wrong, but I will allow their argument has merit.
I do monitor all commodities daily. It was very interesting that both USO (oil) and GDX (PM miners) both rallied into the close after weakness earlier.
I also look at the futures contract structure, which is vastly different now for oil (deep contango) and gold (verging on backwardation). Contango means glut; backwardation means hoarding. Historically, it's usually been exactly the opposite, with backwardation in energy and contango in PMs.
I am very long PMs now and have done great with them the last two weeks. But if energy weakens from here, I'll be moving some PM money into energy. I still believe in food, which had been doing well until today, and soon I'll probably heavy up on base metals.
If you have a mid- to long-term horizon, you can't go wrong with commodities. They are real and the world needs as much of them as it can get.
Think real, not paper. I'll let you know what I think.
girlbear writes:
...I just wish he could pronounce the name of our state correctly...
What's yout problem? I can assure you it's pristine austrian.
and what percent of CA jobs are govt? Lets say 10%. SO, 10% of 10% is 1% of CA income toast. That will work REAL well for the budget and the economy in general.
There was once this movie with Sean Young and some blond guy...Kevin something...maybe he should have been governor.
Hmm... "pristine Austrian"...
YouTube - HQ _ Falco - Rock me Amadeus
I would prefer that everyone take a 10% cut than ten percent of the population unemployed and rioting in the streets...
How many individuals does does it take to constitute a revolution...
mmckinl writes:
...No and No ... default and inflation ...
What about hard work and top notch education to invent and produce the products of the future ?
Not a good idea ?
Better start now, even if it's hard.
We'll know a lot more about California in January ...
~~~
And it will be worse.
Nobody's presented the voters with hard choices in years -- golden goose is the wrong metaphor. Having your cake and eating it, too, is the right one. So they've been pandered to, and lied to, and now the pols are afraid to try to speak straight to them.
Bob Dobbs | Homepage | 12.19.08 - 8:00 pm | #
It's a bread and circuses electorate. The threshold for feel go simplistic Propositions qualifying for the ballot is very low. Thus Prop 1a for a high speed rail between LA & SF. The real problem is that the ones voting are not the ones paying and are oftentimes the ones on the recieving end of the largess.
I could live with a 25% paycut, and I make like 1/10th what you mandarins make.
jeff | 12.19.08 - 7:48 pm | #
Does that mean we are oranges that come in little cans?
Based on my experience, unions will accept layoffs and early retirements for the few to protect wages for the many.
I honestly have no idea. The SEIU has proven itself 100% corruptable, so the leadership will probably do for themselves before the good of the union. The engineers and the prison guards fight a much more nuanced battle. We also haven't heard from "the people" yet. When the lines at the DMV are out the door, maybe they'll react.
What about hard work and top notch education to invent and produce the products of the future ?
~~~~
No where to work , education is too expensive and products don't sell in a world wide depression.
Counldn't happen to a more deserving state govt. There are still a lot of wealthy peeps in CA to tax the crap out of. But they will be the last to pay...
CA prison guards:
Division of Adult Institutions, responsible for the adult prisons, and Division of Adult Parole Operations. These have a 2006/07 budget of $8.75 billion and 57,641 employees, of which 32,772 are sworn peace officers.[9]
California State Prisons
Avenal State Prison (ASP)
California Correctional Center (CCC)
California Correctional Institution (CCI)
California Institution for Men (CIM)
California Institution for Women (CIW)
California Medical Facility (CMF)
California Men's Colony (CMC)
California Rehabilitation Center (CRC)
California State Prison, Centinela (CEN)
California State Prison, Corcoran (COR)
California State Prison, Los Angeles County (LAC)
California State Prison, Sacramento (SAC)
California State Prison, Solano (SOL)
California Substance Abuse Treatment Facility and State Prison, Corcoran (SATF)
Calipatria State Prison (CAL)
Central California Women's Facility (CCWF)
Chuckawalla Valley State Prison (CVSP)
Correctional Training Facility (CTF)
Deuel Vocational Institution (DVI)
Folsom State Prison (FSP)
High Desert State Prison (HDSP)
Ironwood State Prison (ISP)
Kern Valley State Prison (KVSP)
Mule Creek State Prison (MCSP)
North Kern State Prison (NKSP)
Pelican Bay State Prison (PBSP)
Pleasant Valley State Prison (PVSP)
Richard J. Donovan Correctional Facility at Rock Mountain (RJD)
Salinas Valley State Prison (SVSP)
San Quentin State Prison (SQ)
Sierra Conservation Center (SCC)
Valley State Prison for Women (VSPW)
Wasco State Prison - Reception Center (WSP)
Contrast:
- Within the 98,000 square miles that make up the Oregon landscape
- Just over 3.7 million people make up the population of this diverse state.
- Oregon State Police has 580 sworn personnel and approximately 700 non-sworn personnel working in 39 offices throughout the state.
I'd sure rather have more officers on patrol than prison guards for MJ/coke possession in these coming hard times.
lets face it, wages will decline, and co. ins/pensions will be reneged on, unless everyone is thrown into the same pot-FED benefits, whatever level we can afford...
If you disagree, please provide an alternative...
I am very long PMs now and have done great with them the last two weeks. But if energy weakens from here, I'll be moving some PM money into energy. I still believe in food, which had been doing well until today, and soon I'll probably heavy up on base metals.
If you have a mid- to long-term horizon, you can't go wrong with commodities. They are real and the world needs as much of them as it can get.
Think real, not paper. I'll let you know what I think.
rich | 12.19.08 - 8:13 pm | #
Rich, long term I fully agree that commodities are a good play. I'm thinking about scaling into oil to hold for the long-term as well as agricultural.
I'm just in the camp that believes that people vastly understate the hold that deflationary pressures have right now. I'm also in the camp that as bad as we are, the rest of the world is going to be worse off short-mid-term. And the news out of China/Japan/Germany lately absolutely backs this belief up. Exports are imploding with no end in sight. And the rest of the world is way behind the curve, just like the US was 6 months ago.
There is no decoupling in sight, the rest of the world will have to cut rates further which will help the USD short-term as well.
Anyways, thanks for your info. and sorry if I rag on you. Its hard to tell sometimes whether you are giving short-term or long-term calls.
"I bet the stimbamalus package throws more than a few billions to the states."
Obama has only one thing that he can promise to the states: he can offer them funding to be paid for by future taxes. In other words, he can offer them your time and labor.
Once that is promised, your personal possibilities are diminished by that amount. Have fun.
Werner,
Deine Mama fickt für Busgeld und geht trotzdem zu Fuß
und
Dir hat wohl einer in's Hirn geschissen und vergessen zu ziehen!
Go Home.
I have two friends that work for the Cal University System as software engineers. They make GREAT salaries. I have no idea what anyone else makes in the Cal University System but software engineers are not hurting, that much I know.
If you disagree, please provide an alternative...
Anonymous
~~~~~
Medicare for All ...
Currency and credit as a public utility ...
Electrification of transportation...
Tax reform with higher taxes on all income, treat all income as regular income and reciprocal trade agreements.
but, it won't happen.
JimPortlandOR writes:
"Many states are going to be forced to release the 'user' druggies put in prison for long terms because the cost of prisons isn't tolerable in bad times economically. This is to the good, IMO, because prison has become a business and major occupation that is probably negatively productive to society."
Cal turned down exactly that opportunity, by 60/40%, only six weeks ago.
California Proposition 5 (2008) - Ballotpedia
Folks, this little stink bomb was entirely expected. It's the gov's way to clear a lot of heads of the interested parties.
If you look at what he intends... He wants reductions from the entitities that receive State General Funds. If true, this brings an interesting complication to the reduction process.
There are two entities that receive NO general funds: CPUC and Energy Comm'n. Some others receive lion's share of their total budgets from Fed sources (Rehabilitation, ~78%; Education ~? and Transportation ~50%).
In particular, Transportation ("Caltrans") is going to need to be fully staffed in order to shovel Cali's share of the pending Infrastructure Investment Bailout (Super-TARP) into the highway and transit projects that are being lined up.
I see this as a double-threat. Not only is Ahnold threatening the State's legislators, he's also threatening the state's congress-people. The most visible items a cong-prsn can deliver to the home district is transport/transit projects. If these are delayed, some newly-minted cong-prsns are going to look like they failed to deliver to their voters, especially if other states are able to translate their cash-backs into delivered projects sooner.
This "memo" just puts the point on his "requests" for federal assistance with the state's budget.
A Honda spokesman in Japan said, "More than we imagined, the economic crisis has had an influence on what we do."
mp | 12.19.08 - 8:08 pm | #
I was in a competitor's engine plant this week [also a transplant]. I'd say that statement pretty much describes it.
ChefVisar | 12.19.08 - 8:30 pm
Is this Arnold or are his advisors that good?
Pissed Off In California,
May I ask is their job guaranteed. I am thinking the money made by IB bankers...
Look it, no one has guarantee on their current salary/income. If this sucker goes down, we all go down with it...
No one, and I repeat, no one gets out alive...
I believe our founding fathers stated that we hang together or hang separately...
Nemo writes:
Hmm... "pristine Austrian"...
Haha, didn't hear one single austrian word the whole 3+ minutes.
btw, the "real" one was a whole lot better, even though he was by no means the best one (but still excellent). (If you are old enough and have access to really good interpreters you may come to appreciate it)
No one, and I repeat, no one gets out alive...
~~~~
The truly wealthy already have their luxury bunkers ... it's a whole industry now.
Time to shamwow the gerkin.
"May I ask is their job guaranteed. I am thinking the money made by IB bankers...
Look it, no one has guarantee on their current salary/income. If this sucker goes down, we all go down with it..."
One of them I believe already has tenure, the other one doesn't. I was surprised at the salaries as I always thought they would be a lot lower then private sector but made up for it with the benefits.
mmckinl,
Don't be sure that things will not change...
The ground has moved beneath your feet, you can recognized it or ignore it...
Obama has only one thing that he can promise to the states: he can offer them funding to be paid for by future taxes. In other words, he can offer them your time and labor.
Once that is promised, your personal possibilities are diminished by that amount. Have fun.
wally | 12.19.08 - 8:26 pm | #
They can also increase the money supply and funnel to the states [instead of the banks]. Now which of the two is more likely to hoard?
The ground has moved beneath your feet, you can recognized it or ignore it...
Anonymous
~~~~
Is that change or the San Andreas Fault ?
wally writes:
"I bet the stimbamalus package throws more than a few billions to the states
With a wild guesstimate of 2009 state budget shortages Obama will need 100B a year. Then add in state pension funds...
rich writes:
"Going back to the last thread about commodities and precious metals ..."
Rich, I enjoy your running commentary. Keep it up. But PCA is funnier (maybe that's because he's up on his oil shorts). Good luck.
How long are you going to keep holding EEV?
ova:
Wie sagt Man 'Busgeld' auf Anglisch?
something 'money'?
Sounds like we have our next mega-trend ... salary "cramdowns."
"Feds and CA will legalize drugs and tax the H*ll out of it"
And poof, the gangs will go away...
Samdog | 12.19.08 - 8:38 pm
Well, its not "pristine Austrian" but I think he understood.
The problem with the governor's brinksmanship is that he has the weak hand. The teacher's union runs primary and secondary education and has no qualms in tweaking parents with draconian tactics. Likewise the CHP can and will adopt strict enforcement and labor rules. Nothing like a few thousand 56mph speeding tickets to explain the situation to the populace. California spends too much on personell and nowhere near enough on infrastructure. This isn't going to change within the existing political structure. There's an even more ominous issue of regional conflict. There's the two megapolitan areas of SF and LA and the rest of the State.
Bob Dobbs writes:
"I agree that a fully-funded public pension/medical plan should replace all private plans."
You may have it backwards but, either way, the public and private sector retirement structures have to be harmonized before we soon tear ourselves to pieces.
Hhmmm....I've always found Austrians much more friendly than Germans (with the possible exceptions of Hitler and Freud).
My wifes family is Austrian. I would like to retire to Wienna.
Rob Dawg,
I agree no one will voluntarily change their demands with out a crisis...I suspect that the coming years (09-?) will force the change in how business is conducted...
mmckinl writes:
...No where to work , education is too expensive and products don't sell in a world wide depression...
If you provide products for which a real need exists, be it new products or more efficient current stuff you will have no problen.
But the benefit must be real.
As to education, good. T.A. Edison e.g. did not have good education.
And look what he did !!!
Austrian--Nice people! Kinda like the 'Germans who act more like Italians.' (Although you can add the guy who kept his daughter in the cellar to the earlier list). Tschuß!
Bob Dobbs writes:
"I agree that a fully-funded public pension/medical plan should replace all private plans."
~~~~
Excellent ideas ... but then who would the oligarchy play off against one another ?
If you have ever been in a war zone, every persons' concerns are equal to every other...
Lets consider this situation that we are stuck in a war zone...I do not care if you are a doctor, a ditch digger, a banker or an Engineer, we are all people that need each other, if we are to survive...
I would've gassed them both.
Persecuted Comrade Anonymouse | Homepage | 12.19.08 - 8:00 pm | #
I hope they lose everything!
Persecuted Comrade Anonymouse | Homepage | 12.19.08 - 5:23 pm | #
Previous thread.
Being a saver I was very long the dollar most of my life. When the evidence of massive fraud in the system began evident to me I looked for alternatives. If gold takes a massive dive I deserve to lose and it will be painful. I have had ample warnings from posters such as yourself.
Good Luck in your trades. I hope you come out OK
As to education, good. T.A. Edison e.g. did not have good education.
And look what he did !!!
Werner
~~~
The low hanging fruit of invention has already been picked.
Rob Dawg writes:
"It's a bread and circuses electorate. The threshold for feel go simplistic Propositions qualifying for the ballot is very low. Thus Prop 1a for a high speed rail between LA & SF. The real problem is that the ones voting are not the ones paying and are oftentimes the ones on the recieving end of the largess."
County by County results for Prop 1A makes your case.
California Proposition 1A (2008) - Wikipedia, the free encyclopedia
The spur line to Fresno put it over the top. (but what's up with Modoc County - has to be some outlier explanation?)
tg:
what the heck is a
'dope i
Sounds like we have our next mega-trend ... salary "cramdowns."
central_scrutinizer | 12.19.08 - 8:38 pm | #
Be more lay offs in the private sector than cramdowns - less demoralizing. In public sector 'salary cramdowns' and freezes might be more common.
But if you are in a private business - they'll start sorting employees by both salary & 'performance' and try to get rid of as much underperforming big money as they can. Where my wife works they are well into this process [she's in mgmt & knows - has already sorted her dept.] Then it just comes down to a numbers game - how much to cut and when. It is almost like fantasy football but in reverse.
It will be especially bloody in white collar [more of them, they are paid better and harder to justify from a 'necessity' perspective]. Rule of thumb - ask yourself: If I don't show up today does the place stop functioning? Can they ship product or perform services without me? If the answer is 'yes - they can ship just fine' then you too are vulnerable.
But the reason layoffs are less stressful is that EVERYONE is pissed off when their salaries are cut, no one thinks THEY'D be laid off so it really pisses them off to have their salary cut to save somebody else's job - so morale is crap. But in a mass lay off the most despondent & bummed are the ones leaving... the survivors are bummed like for a week then they forget about the others.
Plus if you lay off you choose who you keep - if you cramdown the best employees leave as soon as they find better pay so end up with the worst of all worlds - demoralized crappy workers.
dryfly writes:
"Does that mean we are oranges that come in little cans?"
My Satsumos are ripening quite nicely, thank you. Enjoyed the first two of the season this morning.
I believe that we are at a crossroad in developed world societies and the intense emotions vented here because of the various bailouts are an interesting though not representative reflection of it. The essence of the article that ac posted yesterday evening âWhere Schumpeter was nearly Right â the Swedish Model and Capitalism, Socialism and Democracy" IMO has much more meaning in our present circumstances than is yet generally acknowledged. The key for me is Schumpeter's thesis that âthat socialism would eventually displace capitalism in Western democracies. This would come about as a result of the superior performance of capitalism". I remember when I was in Bombay, India in 1991 in a meeting with then Tata Consultancy GM F. C. Kohli, the âfather of the Indian software industry". I asked him why there wasn't more use of automation in Indian airports (Tata had taken over management of a number of Indian airports by that time)? His answer was quite telling and I paraphrase âWe have such a high unemployment rate in India that we need to fill as many jobs as possible by people. More automation would increase unemployment significantly. We have to strike a very delicate balance between unemployment and better services made possible via automation." Kohli's point ties perfectly into the Schumpeter quote about the âsuperior performance of capitalism". I have long believed that there will be a breaking point even in developed nations where labor is in overabundance. The addition of huge labor pools in the 80s and 90s to the world economy has already lowered or at the very least held wages steady. In addition, tremendous advances in automation have reduced manpower needs in ever more job sectors. I call the combination of these developments the âcommoditization of labor". The full impact of the commoditization of labor weren't felt in developed societies because the boom generated a surprising number of well paid âHigh Touch" jobs. The bust, from my perspective, will expose the detrimental effects of âHigh Tech" because in hard times, there is a tremendous run to efficiency. DOT-COM/Y2K over expenditures resulted in lots of waste but also in huge technology advances that can be leveraged into tremendous productivity improvements. Our societies will now experience the full impact of the potential of these technologies. IMO it will lead to consistently increasing unemployment. My ballpark numbers have long been that the unemployment rate will match the last two digits of the year for two decades or more. This will lead to a significant restructuring of political realities in our societies. IMO the Swedish economists in ac's link will turn out be wrong and Schumpeter will be proven correct. With productive and well paying jobs available to fewer and fewer people, the present political and economic system cannot survive. Either democracy disappears or a socialist form of government evolves. This board reflects some of these strains perfectly as many of those with resources and jobs vent their anger at those who don't have one. As more and more jobs disappear and the tax burden on those with resources and jobs steadily increases, the battle will intensify. It will be interesting how long the present form of government/democracy survives and how long it will be before we hear the first serious calls for the abolition of âone man, one vote".
California's problem that in its political systems voters are required to make the hard choices, and they just can't do it.
They pass prop 13, vote out a car tax raising governor, require a 2/3 public vote on any local taxes and fees. Then they support various tough on crime initiatives that swell prisons, mandate the set aside of huge chunks of the budget for education, support repeated bond initiatives to build stuff.
What do you want? Lower taxes or more spending? They answer over and over again has been "both."
California's future needs to be 1) release 1/3 of the prisoners and close down some prisons 2) change prop. 13 in a manner that allows commercial and limited residential reassessments. 3) Reimpose the old car tax levels, 4) hike university/college fees/tuition. Can't afford it? sorry, the state can't either right now.
But most of this can't be done without a vote of the people, or won't be done by a legislature that needs its party's base to support it in two years.
Basically, California is GM. The voters are the UAW, unwilling to give up the entitlements they think they "earned" and the politican/executives are so hamstrung by prior bad choices that there no viable options now.
dryfly:
I can handle demoralized, crappy workers...
but the ones who come in w/ guns--whoa!
Samdog - fave people who came from Austria:
Feyerabend
Popper
Buber
Wittgenstein
C
And it'll take a bigger man than Arnold to do it -- or woman.
To be fair, Arnold did try to head this off in 2005:
"In a sharp repudiation of Gov. Arnold Schwarzenegger, voters rejected his most sweeping ballot proposals on Tuesday in an election that shattered his image as an agent of the popular will.
Voters turned down his proposals to curb state spending, redraw Californias political map and lengthen the time it takes teachers to get tenure."
Voters Reject Schwarzenegger's Bid to Remake State Government - Los Angeles Times
Dope in a hole. Explorer shows the whole thing. I defended Jas for awhile. I still do not know if what he portrays here is his whole agenda. I just got tired of it and being a devaluanista I took it on.
Counterpointer writes:
Samdog - fave people who came from Austria:
Feyerabend
Popper
Buber
Wittgenstein
no Mozart?
Basically, California is GM. The voters are the UAW, unwilling to give up the entitlements they think they "earned" and the politican/executives are so hamstrung by prior bad choices that there no viable options now.
serf hopeinsd | 12.19.08 - 8:54 pm | #
Except California is GM as ESOP.
Max writes:
"We also haven't heard from "the people" yet. When the lines at the DMV are out the door, maybe they'll react."
Its would be interesting to understand how they decide who and what services, and in what order they reduce. The last budget crisis in Cali, I remember the first thing Caltrans did was close the highway rest stops. They even put signs out that said something like "Closed Due To Fiscal Emergency" or some such. I'm sure there wasn't something less essential to public health they could think of.
RE,
May I suggest a book, "The Human Condition", by Hannah Arendt.
If I understand correctly, people define themselves by what they do...If you take that away from, there is a problem...With increasing productivity and robotics, society needs to come up with a new definition of self and person...
I am not the smartest tool in the shed, however, her ideas are worth reading...
RE | 12.19.08 - 8:53 pm
Such was always the case for capitalism ... Marx knew it 150 years ago ...
There is going to have to be renationalization whereby economies will be self sufficient to a lrager and larger degree. And yes, government involvement in suppotive structures for the public.
Look for a higher and stronger safety net with reductions in working hours and retirement benefits.
Ummm...tg? Was that for me?
Kinda hard to follow, but let me give it some thought.
RE: Paragraphs are these neat writing devices that put white space between your major ideas, making them much easier to comprehend.
Try them!
My Satsumos are ripening quite nicely, thank you. Enjoyed the first two of the season this morning.
Comrade V
MMM, I had never had them until I moved to Florida, exquisite.
How about if Arnie just takes a permanent leave so we can get a real governor?
So sick of his crap.
mmckinl:
do you see martial law in our near-future?
do you see martial law in our near-future?
Samdog
~~~~
25% chance and rising by Summer ...
As most of you know, I am a San Diego area municiple police officer. Our city, like every other city in the county or state for that matter, is facing serious budget issues. Our union is going around and around with our city council, and we have just agreed to give (postpone) our next year's raises in lieu of a threat to lay off dozens of officers. The golden parachute was offered again (second time this year) to those close to retirment, so the strategy is to get them off the city's dole and onto CalPer's. My wife, who works for the county, is also getting constant budget related news. They face serious shortfalls and golden parachutes abound at her work.
No one has made the move to actually lay off public safety people. But the threat to (like Arnold's threat) has gotten employees and their unions to start conceeding raises and other perks.
We all hope and pray that we don't lose 3% at 50 retirement...but I don't see how they don't try to take it away...it amounts to a back breaker for the taxpayer longterm.
There is no way we are at bottom, because all govt agencies are pussyfooting around and havent been forced to make real decisions. Come this next fiscal year July 2009, you will see the sh$t hit the fan and the next leg down in unemployement and the economy will come.
However, it would be easy for the Fed to simply inject money into all the state's coffers and make them instantly solvent. This would prevent jobloss, amount to a stimulous package, would begin to reflate the deflating bubble, and save politicians from actually making hard choices. If they could magically make digits appear in the bank accounts of the states, much of the worst problems will be avoided. Since Bernanke has said they will do anything to avoid deflation....I think printing money in the form of simply adding a zero or two to state's reserves qualifies as "anything".
I live in Rhode Island. They tried this here. The courts exempted its personnel on the basis that all the political hacks in the court system were too vital to be forced to take a single unpaid day off. Oh yeah, these judical employees are so vital that on average they have 5 weeks of vacation per year and 10 personal days. They have--are you ready for this?--unlimited sick days. And because they work so long hours--37.5 hours per week--they get every possible holiday off as well. I guess the RI judicial system only shuts down if its employees aren't paid when they don't show up. Anyways, once the political hacks in the judical branch announced that they weren't going to do their part, the executive and legislative branches gave up the idea. Now the plan is to tax everything that breathes, moves, eats, craps, or dies. Hmmm, I wonder how this will turn out. Talkin' bout a revolution, baby?
Yep. Has anyone heard that Paulson & Co dropped the 'martial law' bomb to get the $700B?
JimPortlandOR writes:
"CA prison guards ..."
Anecdotal: In my work I use a PI, one of the top guys in Cali (he's the go to guy for the Hells Angels - just won murder trial in Sturgis, SD) told me his clients would all prefer private run prison over public in Cali because at least in private operation the guards know there are consequences for abusing the prisoners - they can be fired.
Yep. Has anyone heard that Paulson & Co dropped the 'martial law' bomb to get the $700B?
Samdog
~~~~
Again ?
We all hope and pray that we don't lose 3% at 50 retirement...but I don't see how they don't try to take it away...it amounts to a back breaker for the taxpayer longterm.
Average Joe | Homepage | 12.19.08 - 9:04 pm | #
With all due respect it is 3@50 with the baseline calculated on padded OT and the infamous CalPERS spike. Then there's the Chief of Fillmore who is a full triple dipper also pulling full salary.
Ahnold shud jst go back to awwwstreeaaa
mmckinl writes:
...The low hanging fruit of invention has already been picked...
In a way, if you refer to the fact that a lot of inventions are made in labs with tonns of PHDs, I can see your point.
But think e.g. Bill Gates. He was a College dropout, founded an horribly obscure software-shack, did some obscure programming work for municipalities (traffic light control I think), bought cheaply the rights for DOS from IBM (they were in "big iron" and did not value that "amateurish" low level stuff, and whoaa! Sure, he had lots of luck, but in the beginning he also put in a hell of an effort and stayed on the right course. So, with a little less luck... it may not suffice to become the richest guy on earth, but still...).
Average Joe.
We are all screwed.
"we hang together or we hang separately"
We we all are going to pay for this screw up!!!
Average Joe:
Ha! They want to give a 'parachute' then push you off a 50 ft cliff...nice.
I remember hearing about the "martial law" bomb when it happened. One Congressman discussed how his colleagues had told him of that very conversation. People told me was a conspiracy theorist at the time...
Werner...
Gates invented nothing ... the code was someone elses ...
Gates just practiced predatory pricing and drove everybody else out.
With economy in shambles, Congress gets a raise
By Jordy Yager
Posted: 12/17/08 05:41 PM [ET]
it beggars belief
DMV consumes nearly all the fees collected with operations. Anybody here doubt that Ken Cooper can whip up a Firefox plug-in over the weekend to replace 80% of the department for 20% of the cost?
Samdog - No Mozart. Too complex, and doesn't work on my tonal preference.
Anonymous - on Arendt? Are you baiting me?
More next comment.
C
mmckinl writes:
Yep. Has anyone heard that Paulson & Co dropped the 'martial law' bomb to get the $700B?
Samdog
~~~~
Again ?
mmckinl | 12.19.08 - 9:08 pm | #
Supossedly, HP said if financial mkts went belly up--public would go ballistic--riots, looting, burning, you know, the usual post-Superbowl stuff.
I don't know if it's true.
Rob Dawg writes:
DMV consumes nearly all the fees collected with operations.
~~~~
Does that include registration fees? I thought tat was one reason we were in this mess was the lowering of reg fees.
When all the "printing" is said and done, in the distant future, if asked : "Mr Chairman, if you had the choice, would you hold dollars?"
I bet he'd be likely say yes.
The Problem With the Federal Reserve's Money-Printing - WSJ.com
Why, because he wont see the next problem coming either. It too will be contained (to earth.)
I am again reminded of The Seventh Seal : "DOOMED! DOOMED! DOOMED!"
I like Mozart--but very old school. Beethoven's more original.
Supossedly, HP said if financial mkts went belly up--public would go ballistic--riots, looting, burning, you know, the usual post-Superbowl stuff.
I don't know if it's true.
~~~~
It was true for TARP 1 ...
mmckinl, it's true, don't you remember the Congressman that came forward that same week? Wish I could remember his name, but he said other Congressmen had told me of that conversation. It was downplayed by the press and didn't get much traction in the blogosphere but it is exactly why they got it passsed the second time.
What's the TARP II excuse: quid pro qou?
"OK, I bailed out the Big 3, now give me the rest like you promised"?
I have only one question...
"Do you really thing that whats happening in the economy will not effect you?"
You can be all all the gold or bonds or stock or shorts/puts, however, it all depends on a stable society...
You do not own your land in the wilderness without the force of law...
If society collapse, then all you have is force and not the force of the govt...
So if you are willing to disengage from community, then you better have someone to produce your food, provide medical care and raise livestock...
RE: Paragraphs are these neat writing devices that put white space between your major ideas, making them much easier to comprehend.
Try them!
Carol | 12.19.08 - 9:01 pm | #
Carol, carriage returns from MS Word don't translate well into CR Companion...
That's 'quo
Comrade Kristina
Paulson probably made a lot more threats behind closed doors.
He had to save his stock at GS ... Now AIG is Goldmans' piggy bank.
To that comment on prisons.
If anyone thinks eliminating prisons will save money they are smoking crack.
The prisons are either full of very violent people...and there are alot of them in California, or they are full of druggies.
The cost to house a prisoner for a year is about 50 grand or so. Now, the cost to support a drug habit is way way way more than that. And, if you pay for the habit by having them steal something you paid $500 bucks for and sell it for $20, then it gets even more expensive.
The prisons are full of people that are rotated in and out over and over. Each time they go in, they consume time and effort, court time, probation time, police time etc. It's much cheaper to put them in and keep them there than to let them out and let them cause thousands of dollars of damage, not to mention violence and death, so we can work our butts off to catch them again and prosecute them.
When they are out of prison, they befriend others and teach them their criminal ways, they impregnate strangers and leave kids in their path that need welfare and suffer abuse and neglect only to grow up criminals.
If I only paid taxes for one thing. It would be for prisons.
LOL mmckinl, we are the United Sachs of Goldman America...
Anonymous writes:
I have only one question...
OK, but a lot of this stuff is rhetorical. I think most people know there are definite advantages to preserving the order, but I'm only speaking for myself...
Reuters about FedX cutting salaries 5%: "The companies are counting on the fact that people will be scared and won't resist. I mean in this environment, who wants to quit and look for another job?"
Did I miss the news about this happening at AIG? GS?
Samdog - I go back a bit further to baroque. That's how I've lived to the ripe old age of 375...
On the Arendt front, there's way to much banality of evil going on, and far too little natality.
C
Anyone watching Dateline right now? They are going city to city to watch sheriff's evict people for non-payment.
Comrade Kristina writes:
LOL mmckinl, we are the United Sachs of Goldman America...
~~~~
No, they are ... we are just peons ...
Peons? Not even. The only reason they don't just shoot us is because then they couldn't steal any more of our money.
Comrade Kristina writes:
LOL mmckinl, we are the United Sachs of Goldman America...
Comrade Kristina
Good one--and I'm glad you remember the martial law business...interesting point that it was downplayed.
mmckinly, here is an article on it from the time. Now the right has picked it up and Worldnut is carrying it. When we were bringing it up we were told we were moonbats, go figure.
Jayne Lyn Stahl: Martial Law?
Nemo:
No way does this actually happen. I bet the stimbamalus package throws more than a few billions to the states
$100 billion is proposed for states. Probably $10 billion to Cali.
bought cheaply the rights for DOS from IBM
Werner | 12.19.08 - 9:09 pm | #
Werner, you are misinformed. Gates didn't buy DOS from IBM. He bought the rights QDOS from Seattle Computer Products to sell his services and DOS development to IBM. Digital Research lives in infamy forever since.
Although the NDA was later accepted, DRI would not accept IBM's proposal of $250,000 in exchange for as many copies as IBM could sell, insisting on the usual royalty-based plan.[1] In later discussions between IBM and Bill Gates, Gates mentioned the existence of 86-DOS and IBM representative Jack Sams told him to get a license for it.
Werner - B. Gates bought DOS (dirty operating system)for 50 g's, from a hippy in Wallingford, WA (who designed it in his garage) and then hooked up with IBM to make his fortune. Bill saw the potential to be unlimited, whereas the hippy didn't. Very interesting story.
Average Joe,
The US places more people in prison on a per capital basis than any other !st world nation.
There is something about human nature, if people wants to use drugs, you can not stop them. I suspect that we learned that in the prohibition period...
This war on drugs has been going on since the 1950s. When do we admit that we have lost this war(by the way I do not use illegal drugs).
Paulson used the martial law comments in a Congressional conference call Sept 19th Congressmen Inohofe, Sherman and Burgess confirmed.
RE writes:
"It will be interesting how long the present form of government/democracy survives and how long it will be before we hear the first serious calls for the abolition of âone man, one vote".
A related issue exposed by emerging crisis is falacy of "full employment" economy which IMO was a politically driven but unrealistic ideal that led to the inflation driven public policies that finally blew up. Until we come to terms with the reality that there is not enough productive work (at least drawing middle class salaries) in an efficient economy, we will not evolve beyond the current flawed model.
Average Joe, my SIL is facing a similar problem. She teaches, has been at her school for years, will be 62 next year. They have begun to make vague suggestions re her retiring lately. I've told her several times next year is it for her.
She keeps saying her local educ assoc is very strong, always supports the teachers. My response to her is that she'll be over 62, eligible for a full pension and can draw social security also if she wishes. Plus they pay a portion of health insurance for retirees.
No way will the assoc back her on this. She's gone just won't accept it yet.
Thanks Rob, I just found the article, it was Sherman I was thinking of.
Average Joe,
I'm with you. Most people preaching the 'legalize drug' mantra have never been around druggies. They are all thieves.
If I only paid taxes for one thing. It would be for prisons.
Average Joe | Homepage | 12.19.08 - 9:23 pm | #
Kinda like the old saw about everything looking like a nail when all you have is a hammer.
LEO's tend to see everything in a context of criminality. Hard not too in that line of work. Several good books written about the dangers of seeing citizens as criminals or potential criminals. I'm sure they even handed out a couple during the academy. They aren't usually read or even discussed.
Prisons are the result of failed social programs/political agendas and a very real threat to trying to solve problems by warehousing them. Plus it's profitable and provides good paying jobs.
Comrade Kristina writes:
mmckinly, here is an article on it from the time. Now the right has picked it up and Worldnut is carrying it. When we were bringing it up we were told we were moonbats, go figure.
~~~~
The right has been sidelined, they'll do anything to get traction right about now.
It's All Corporatocracy Now Baby ... the right and the left are out of business.
The cost to house a prisoner for a year is about 50 grand or so. Now, the cost to support a drug habit is way way way more than that.
So you think we need to put all the alcohol drinkers and cigarette smokers in jail to save the country money? I really don't think that pencils out.
Sadly, you are correct mmckinl. I've been shouting it to the rooftops for awhile. One thing Barack is definately correct about, until such time as we all work together, change is near impossible. The left and the right and everything inbetween needs to get their acts together...
Ah yes, nothing like a little Bach at Christmastime.
As far as Arendt goes--I don't know enough about her to comment. Wasn't she at Princeton?
(BTW, I'll be 351 in January--As I like to think, "I'm not getting 'older,' I'm getting positively ancient!")
serf hopeinsd writes:
"California's problem that in its political systems voters are required to make the hard choices, and they just can't do it."
As RE points out, Cali voters are not monolithic. Rob Dawg has it right, everyone gets to vote but not everyone pays. The propositions put on the ballot are engineered to exploit this seperation between choice and consequence.
eliminate the CA prison systems?
What would MSNBC do for its weekend lineup...
Gotta go--my daughter's calling. She's only seven (great stuff that Viagra....)
One thing Barack is definately correct about, until such time as we all work together, change is near impossible.
~~~~
BO is part of the Corporatocracy ... Straight out of the Ivy League Oligarchy ...
"So they've been pandered to, and lied to, and now the pols are afraid to try to speak straight to them."
He also insists on running his office out of LA rather than the capitol. I'm fairly confident that that luxury costs the state vastly more than the salary he forgoes.
Anyhow California's problem, in more ways than one, is prop 13.
It simultaneously accentuates housing bubbles, gives the insane 1/3 minority party a veto over the budget, and destabilizes the tax base by minimizing the weight of property taxes.
All three of its main effects are feeding into California's recurring and current problems.
At a deeper level the problem is the bad state constitution, which can be amended by a simple majority vote giving us various bad laws (like prop 13).
Conjure offers the following suggestion for searching CraigsList in your area.
On the main search line type:
"need the money"
Conjure says, "Flat screens, anyone?"
Those of you who don't like the option of a pink slip for 2 days a month should check the box selecting the option for the regular pink slip.
I'm torn on that one mmckinl. Naive? Probably, but compared to the rest of the offerings? Bah...You are probably right...
"The US places more people in prison on a per capital basis than any other !st world nation"
This is CRAP. These are the SAME people counted over and over as they go through the revolving door.
A door that is heavily used precisely because it is revolving.
Even IF we have too many prisoners it is only because we have too many people willing to stick a gun to a person's side and demand money, or steal a car, rob a bank, or stab another gang member.
Remember these people aren't in Prison because they are innocent. If we have too many prisoners it's not by accident! And you don't solve it by fewer prisons! In fact, if we put more people in prison for longer we'd need fewer of them.
But this is too hard a concept for people to understand.
Prison is a symptom, not a cause. You don't reduce those who deserve prison by reduce prison space.
Every druggy in prison is only there for drugs because they couldn't catch him while he was burglarizing your house or stealing your car. They are burglars for 5 minutes a day...they are druggies ALL day long...
Try supporting ONE druggie on your salary and you'll realize these guys are NOT paying for their own sh#t. It's coming from you one way or another.
We're dealing with this kind of news in WA state. I work at a state university library, and we're all stressed and dreading what cuts will be announced for us.
I plan to use any forced days off to work on home food production. We have a huge garden, and the more I can harvest & preserve, the less cash we need to spend on food.
I also brew beer, wine, cider & mead for the household, which saves a few pennies too.
I also brew beer, wine, cider & mead for the household, which saves a few pennies too.
Joanna
~~~~
Marry me ?
Until we come to terms with the reality that there is not enough productive work (at least drawing middle class salaries) in an efficient economy, we will not evolve beyond the current flawed model.
Comrade V | 12.19.08 - 9:29 pm | #
I agree. In essence this is my point. There will not be enough productive work and therefore fewer and fewer tax payers. The period where there is work for everybody has passed. The question is what political and economic system will emerge when this realization sets in.
heh, wrong quote... I meant to quote the one about the governator's $1 salary!
crazy holiday schedule for me, here's a bunch of just released fed data snuff porn charts. deep breath, and -
St. Louis Fed: Series: BOGNONBR, Non-Borrowed Reserves of Depository Institutions
St. Louis Fed: Series: RESBALNS, Reserve Balances with Federal Reserve Banks, Not Adjusted for Changes in Reserve Requirements
St. Louis Fed: Series: NFORBRES, Net Free or Borrowed Reserves of Depository Institutions
Average Joe,
Why aren't there a greater proportion of rich white males in rape-my-ass prison? Plenty of them commit crimes more deplorable than "possession".
RE, perhaps people need to stop breeding at such an alarming rate?
Currently Accounting writes:
"To be fair, Arnold did try to head this off in 2005:"
That was one of the worse run political campaigns I have ever seen. The unions crushed him with all their adds of pretty uniforms.
Has anyone heard that Paulson & Co dropped the 'martial law' bomb to get the $700B?
Yup, and if there were any justice in this world, President elect Obama would return the favor by calling a closed door meeting of Congressional leaders, the FBI and his transition team.
The subject of the meeting would be an unspecified "rumor" that Paulson was caught on tape selling TARP money to his cronies at Goldman Sachs.
Paulson would then be asked to resign immediately and give the money back or face immediate indictment.
Comrade Kristina writes:
RE, perhaps people need to stop breeding at such an alarming rate?
~~~~~
Peoples best weapon against servitude ... low birth rates ...
RE, perhaps people need to stop breeding at such an alarming rate?
I think Russia is still offering the baby bonus. They're losing about 1M people per year.
cs, you sure know how to get a girl all tingly on a Friday night!
to the moon alice!
St. Louis Fed: Series: XRCB, Excess Reserves Plus Required Clearing Balance Contracts of Depository Institutions
St. Louis Fed: Series: EXCRESNS, Excess Reserves of Depository Institutions
this chart is broken, it only goes to zero-
St. Louis Fed: Series: DCPN30, 1-Month AA Nonfinancial Commercial Paper Rate
In 2007 heard the signs that had martial law on them was taken to DC.
The Driver of rig called his dispatch, she called The Radio Station, and was diconnected as soon as she stated what was going on. It was as if the call never happened. Yet I was lisening and e-mailed a friend.
When did HP become TS.
Rob Dawg writes:
"There's an even more ominous issue of regional conflict. There's the two megapolitan areas of SF and LA and the rest of the State."
Bisected by the North/South divide. Wait until historical water issues re-emerge
YouTube - Chinatown - Trailer
RE, perhaps people need to stop breeding at such an alarming rate?
Comrade Kristina | 12.19.08 - 9:39 pm | #
I firmly believe that computers will win this race no matter what breeding rate we have.
Try supporting ONE druggie on your salary and you'll realize these guys are NOT paying for their own sh#t. It's coming from you one way or another.
Average Joe | Homepage | 12.19.08 - 9:36 pm | #
10 reasons cops are different
The burden is real but you are responsible for keeping a balanced perspective to the society you protect.
Sounds like you should be advocating more treatment. $50,000 a year will pay for many social programs that will help change a fellow human being's life. Prison is a failure not the solution.
"The US places more people in prison on a per capital basis than any other !st world nation"
This is CRAP. These are the SAME people counted over and over as they go through the revolving door.
No, it's the percentage of population in prison at any given time. We are totally off the charts compared to any other developed nation.
Every druggy in prison is only there for drugs because they couldn't catch him while he was burglarizing your house or stealing your car.
We all know the equation - if drugs are illegal, people commit illegal acts to get them. If they aren't, they don't. If marijuana or opium were legal, there wouldn't be people stealing to get them, just as they don't for alcohol and cigarettes today.
And, no, there are a lot of people in jail for drugs who have not committed violent crime or burglary. I know two people who got sent to jail via sting operations.
Comrade Kristina,
Maybe someday we'll see justice. Keep hope alive ...
Look for a higher and stronger safety net with reductions in working hours and retirement benefits.
mmckinl | 12.19.08 - 9:00 pm | #
And probably less total wealth in aggregate but a more even distribution of what wealth there is.
I think that is where we are heading politically today - willing to accept less in aggregate to be certain we [each of us] gets something individually ourselves. It is a huge 'c' change from where we were 10-20 years ago but not unlike where we were in the past - say 40s and 50s. Things cycle.
It seems CA's fiscal problem is the unions. While their numbers aren't that high outside of the city and state govt, its a mess dealing with the state deficit. The unraveling should show who the real incompetent politicians are.
cs, what else do we have?
...people who came from Austria:
-Counterpointer
My favorite thus far is Karl Popper:
Karl Popper - Wikipedia, the free encyclopedia
"Philosophers should consider the fact that the greatest happiness principle can easily be made an excuse for a benevolent dictatorship. We should replace it by a more modest and more realistic principle / the principle that the fight against avoidable misery should be a recognized aim of public policy, while the increase of happiness should be left, in the main, to private initiative."
Jacked said,
"Prisons are the result of failed social programs/political agendas and a very real threat to trying to solve problems by warehousing them."
I almost agree 100%.
Warehousing them though we are not doing. We are sending them there temporarily just long enough to make their coming back into society impossible.
If they were truly warehoused, they'd be unable to get out, procreate, commit more crime, recruit others, and stand as example to their community that there are no consequences.
There are alot of reasons that we have so many people that belong in prison...but that doesn't make them any nicer or safer, and it isn't because we have alot of prisons.
Trust me, by the time they get to prison...the vast majority have been arrested many times and have committed themselves to a life of crime.
Average Joe writes:
"We all hope and pray that we don't lose 3% at 50 retirement...but I don't see how they don't try to take it away...it amounts to a back breaker for the taxpayer longterm."
As a North County resident I am standing up and applauding your frank honesty. A taxpayer thanks you.
Solution very simple, phase it out over time. No one who accepted the employment bargain should lose a vested right but new employees should be recruited/hired based on more realistic expectations. We have to dissolve the inequality between public/private sector retirement liabilities.
I think that is where we are heading politically today - willing to accept less in aggregate to be certain we [each of us] gets something individually ourselves.
"From each according to his ability, to each according to his need"
K. Marx
cs, I think Jesus said something similiar long before Marx did...
Why aren't there a greater proportion of rich white males in rape-my-ass prison? Plenty of them commit crimes more deplorable than "possession".
Because the SEC is asleep at the wheel.
Your local beat cop can only combat street crime. When your rich white males start jacking old ladies for 20 bucks...then you may see a change.
Now, mainly medium to long term.
Look, I'm as bearish as anybody here on the economy and stock market.
But I cashed out the last of my ultrashorts today, because they just aren't working and they make you edgy with the short-term fuse.
Everything is being driven by Fed liquidiy now, and you almost have to guess where the Fed will be pumping liquidity next week, if you have a short horizon. I mean, of course they'll be pumping on the SPY, but what else?
I decided to exit that game. I actually still have single short ETFs in small-caps and emerging markets, but I'm prepared to hold them until the market tanks a good deal more, probably in Feb.
I just feel in my bones at some point gold is going to $1,500, oil to $75, and silver to $20. I can wait. Hey, at zero percent interest, we all can afford to wait.
At a deeper level the problem is the bad state constitution, which can be amended by a simple majority vote giving us various bad laws (like prop 13).
jefff
Prop 13 is the only law that keeps the State from taking property from the poorest by raising taxes on property. There are a lot of poor homeowners and there will be lots more soon.
It is a good law. Read the history of it. There is a valid reason for it being on the books. It keeps the State from putting people out on the streets.
I took nothing that people were not willing to give.
And I gave nothing that I was unwilling.
When a time, such as now, arrives when everyone wants,yet there is nothing more to give.
Comrade V,
That's comming...it really is.
Those of us grandfathered in will live off the retirement contributions of those that follow us. Sound familiar?
RE writes :
...I have long believed that there will be a breaking point even in developed nations where labor is in overabundance. The addition of huge labor pools in the 80s and 90s to the world economy has already lowered or at the very least held wages steady. In addition, tremendous advances in automation have reduced manpower needs in ever more job sectors.
With all due respect, I beg to differ.
Isn't yours a rather "static analys".
Don't you overlook that there is something like "technical (and other) progress"? With that I mean that people do something and, since you can not prevent them from learning, improve their methods (sometimes by employing tools which then need to be made and generate new jobs, partly compensating the joblosses created by the improved methods) and eventually "freeing up" people to do other/new things. Sure, it takes time and effort to find these new things, and the transition is not without pain, but it allways occurs.
The societies in 1900 were basically agriculture (70% of all jobs). Today, probably 3% are in agriculture and the huge majority today earns a much better standard of living doing things the people in 1900 could even not imagine. So, what happend? The people freed up doing one task just switched to doing other things. The "games played" between 9 and 5 o-clock just changed (from harvesting potatoes to whatever you do today).
So, the system actually is "dynamic", and the real game is that the game always changes until human imagination is exhausted.
So, the only thing being constant is change.
Where can I get some mead not too expensive? I would pay up to maybe $6 a quart.
I think that is where we are heading politically today - willing to accept less in aggregate to be certain we [each of us] gets something individually ourselves...
~~~
I hope so, the alternative is a third world country where noone wins ...
Comrade K,
Touche.
The real trend I see is less and less freedom. We've given up control of our lives for the illusion of security.
I could list a litany of reasons and rest stops along the slippery slope, but it all boils down to the fact that the average "born and bred dope" (tm Jas) doesn't want to fight for their freedom.
We've grown too comfortable, and too affluent to fight back.
Maybe a good depression will change that.
"The only constant is change."
can I see that as an equation?
cs, I don't disagree. I just grow weary with the "Socialist" bashing, especially by "Christians". I have to believe in my heart, somewhere in the middle there is a compromise that works for all.
The real trend I see is less and less freedom.
~~~~
Yep, less freedom from want, less freedom from hope, less freedom from need ...
Until one has their basic needs taken care of, there is no freedom except the freedom to starve.
Counterpointer,
I have got to ask, I hate myself for asking,
Have you read Hannah Arendt?
If so, what is your solution?
Comrade Kristina - The word 'compromise' does not exist in the Christian vocabulary -
Average Joe, I've followed your comments here for a long time, and I respect your views.
I've always guessed that legalizing most drugs would reduce the crime that drugs create. What are your thoughts?
I believe he's already addressed that.
Anyone want me to spoil the ending of Seven Pounds?
Prop 13 is the only law that keeps the State from taking property from the poorest by raising taxes on property. There are a lot of poor homeowners and there will be lots more soon.
If you think the poorest own real estate anywhere in the US, never mind overpriced California, you lead a very sheltered existence.
Average Joe writes:
"To that comment on prisons."
AJ, there's an old saying, "if you're a hammer, every problem looks like a nail."
My wife worked as a guard (before my time) at Terminal Island, Long Beach. She knows what you speak of, and for a lib blows all of her friends minds when she spreads her hawk wings over death penalty.
But she (and I) both believe criminalization and prison system for non-violent drug offenders is self defeating because of the black market it creates. If drugs are not illegal, but simply regulated, crime to acquire drugs vanishes. Even the Cal Prop that failed this year (see prior post) assumed that if you netted out costs of rehab with costs of continued incarceration, you still saved billions in capital outlays.
I understand how you feel, criminalization is dehumanizing and you guys are on the front lines of dealing with the monsters that society creates. Lets stop the paying to creating and waerhousing them. The war on drugs has been a failure for decades.
rich writes:
Going back to the last thread about commodities and precious metals, I'd like to say that I really do value the consensus opinion on this board. So, if several informed regulars think gold will tank, I do consider what they are saying.
The corrupt and manipulative credit expansion has disrupted the economy and the markets so much on both the upside and downside that a good case can be made for either inflation or deflation, and I've decided to put aside what "I think" will happen and instead let the market decide, using a general buy-stop concept, in the case of gold for example, with 2 closes over 1000 being the buy decision.
After what our monetary idiots have just done, it seems to me gold for one is going to either $50 or else $5000, and I can reason that either way. Movements between $700 and $900 can be traded off the charts with no big decisions needed.
Isn't looking at the monthlies maybe the best thing to do in the deteriorating environment left to us to us by the bungling fedicrooks?
I can't speak for Christianity (I'd make a lousy spokesman), but as a libertarian type I believe that utopian systems are prone to failure.
That doesn't mean that government shouldn't try to help people. I'm all about helping folks.
But the ultimate way to help someone is to give them the conditions (not the guarantee) to succeed or fail, on their own terms.
What we see with these insane bailouts is the worst of both worlds:
The corporate greed of the right;
The stereotypical big-government meddling of the left
A new political force is needed, one that doesn't break along the old fault lines.
Doc at the Radar Station - great quote from Popper.
My grandfather had a battle royal with Popper in the late 40s. Granpa, as a Prof of mechanical engineering, thought he was a fool, a fraud and a pseud. Thought some of the visionary stuff was ridiculous, and that he'd moved waaaay too far from evidently valid hard empiricism and the natural order of the superiority of revealed truth of hard sciences vs the nuance of historicism, due relative perspective, and (horrors!) commenting on the interface of science and political economy...
Granpa was delighted that I was heading into academia in the early 90s before he found more time to be with his soul.
Oops. Wonder what he'd make of my path...
C
Average Joe writes:
The cost to house a prisoner for a year is about 50 grand or so. Now, the cost to support a drug habit is way way way more than that.
You mean like nicotine and alcohol that are both perfectly legal and taxed drugs?
By your thinking, we should not only go back to alcohol prohibition by also ban nicotine.
A hundred years ago, heroin and cocaine we legal, we even put cocaine in Coca-Cola. Somehow, the country survived.
Social reform is for idiot philosophers, faux savants and those seeking positions of power in government.
Reform happens in cycles. Two steps foreward and one back. Reform doesn't necessarily mean progress. Reform can also mean the loss of freedoms. But freedom can sometimes be only indecipline.
Decipline is wanting today. Where there is no self decipline, society will eventually impose it.
The death spiral will continue with an aging civilation. They do not die overnight. Sometimes they take centuries.
Rome was corrupt in 46 BC. It lasted another 500 years.
patientrenter
I don't think legalizing drugs (except marijuana which I think should be legal) will help. It hasn't anywhere else. You will definately get less people in prison for drugs..but it will be the same people, only arrested for other crimes to support their drug habit.
If drugs are legal, they still aren't affordable...especially for a unproductive druggy. They will commit crimes to support their drug habit. Meth users will commit violent crimes as their brains get destroyed. For many druggies, they may as well be legal. They do so little time for them. Prop 36 in Calif basically has legalized drugs for most and it's been a disaster.
Drugs are illegal because of what they make people do. Legalizing drugs won't change the effects drugs have on people.
CC, were gangs dealing in Coca
Cola back then? I'm guessing not, the local Fountain Shop handled it...People as a collective lose knowledge from generation to generation.
Jacked @ 9:30
Just saw your post which predated mine, sorry for stepping on your hammer & nail line.
You all, I give up!
Some people refuse to see that our way of life is/has changed...
If you do not recognize it, then you will die..
What is that old line, If you are not part of the solution, then you are part of the problem...
PS: I financially conservative, but socially moderately liberal...
good night, Y,all
Thanks, Average Joe.
Certainly if addictive drugs are expensive, then most people who use them will have to commit crime to support their habit. In the situations where using drugs has been legalized, or 'almost legalized', I think the suppliers are still criminalized, and drugs are still quite expensive as a result.
I am not sure we've seen too many experiments where countries or states have legalized the entire drug supply and use chain, and drugs are relatively inexpensive - like cigarettes today, say. What do you think would happen in that kind of environment?
If drugs are legal, they still aren't affordable...especially for a unproductive druggy.
That's flat nonsense. The common drugs are all cheap when legal, and even the destitute can be addicted without serious criminality - winos in the US today; opium smokers in 19th century china; hashish smokers in India; coca leaf chewers in the Andes.
RE writes:
"I firmly believe that computers will win this race no matter what breeding rate we have."
Uh oh ... they already have.
YouTube -
mmckinl writes:
Werner...Gates invented nothing ... the code was someone elses ...
Gates just practiced predatory pricing and drove everybody else out.
No, definitely not! As I said, he later did buy the rights (yes, including the then existing code) of an operating system from IBM (which owned that code because it had bought the company who originally wrote that code) and greatly extented that into a usable operating system to be called DOS. He and (heaven I forgot the name of the other guy) coded day and night to make it into DOS, which has since been continuosly extended to Vista.
If you think he did that in a kind of cheap way, read up the history. Lots and lots of hard work, some god luck and plenty good desicions was it. No trickery! Belive me, I worked then for a "kind of" competitor to him (not really competitor because we goofed that up, without becomming too clear and preserve a little anonymity), but it was hard, decent honest work.
I suspect what's wrong with some of you here (and probably too much americans today) is the notion that you need to make a quick buck and just trick or cheat in some way. Usually (99%), that quick and cheap (i.e. effortless) route fails!
Comrade V writes:
Jacked @ 9:30
Made me smile.
We have the same thinking regarding prisons and the war on drugs. Many law enforcement personnel in my family. Makes for interesting get togethers.
Cops see the problems but know they can't change the conditions. After a while they become resigned and go through the motions and wait for retirement. Just like most of us. Downside for them is they will be asked to do more with less and be on the frontlines when things go badly.
Anonymous - c'mon, are you going to hang together or hang separately?
Can you be on my team?
C
I am not sure we've seen too many experiments where countries or states have legalized the entire drug supply and use chain, and drugs are relatively inexpensive - like cigarettes today, say. What do you think would happen in that kind of environment?
Opium, marijuana, and cocaine were all legal and widely used in patent medicines in the 1800's in the US. Associated criminal activity was rare.
werner, good commentary. Thanks for the insight and the honesty. Sometimes truth is inconvenient to a worldview driven by ideology or principles - whatever you call fixed preconceptions - rather than by the bare facts.
Size 10 writes:
"[Prop 13] is a good law. Read the history of it. There is a valid reason for it being on the books. It keeps the State from putting people out on the streets."
The reason for Prop 13 is because property owners lost trust in the State's ability to equitably balance the competing interests. When property owners believe their interests are not being sacrificed simply to protect public employees, then maybe the attitude will change. No idea how to make that happen.
Most Westerners have the perspective of a frog. Our lower educational system has been a failure for at least the last 50 years. It started with school district consolidation and teachers unions but with other factors as well. The new education person in Obama's cabinet presides over a school district that spends almost $13,000 per student per year. What a disgrace.
My wife's Montisorri nonprofit educates students for $6,750 a year with IB and AP success rates of 86%. And yes, these are ordinary kids whose parents value education and make financial sacrifices for the sake of their children.
OK, the perspective of a frog is good for a generation and may be useful for survival day by day but is a poor concept for governing a nation.
I reserve judgement on Mr. Obama but seems to me that he is hiring cronies and the 'old' gang and charging them with making changes. Leopards and spots.
Patientrenter,
If drugs were very very cheap, (as Faireconomist points out) then I think that this would go along way to helping reduce the crimes. However, not for drugs like crack or meth. These are simply too destructive and dangerous. However, if there were safe alternatives that were cheap and available then cool. Perhaps their availability would crowd out demand for the other stuff.
In countries that have legalized drugs, they still have very high crime rates in those areas (like burglary, rape etc). But society is more able to isolate them.
My brother in law had a job and was a meth addict and was able to be crime free as long as he supported his habit. But then he went overboard, couldn't work and then he blew his brains out one day coming off a three day binge. So, I can see a need to keep dangerous drugs illegal regardless of a druggy's ability to pay.
I have had meth addicts torture a 4 year old girl to death (Jenny Rojas case in Chula Vista...google it). So as you can see dangerous drugs are illegal for a reason.
We have drawn a line between alcohol and the rest. There is no reason we can't draw the line further into drug terrritory and legalize opium and pot. But we have to draw the line somewhere.
I know quite a few transients who burglarize homes to buy booze...booze being cheap and legal doesn't stop them. So it's no easy answer.
Werner - the name of the other guy - Paul Allen?
Anonymous - please no, we need blue dogs here!
Fak. What a week. Popeye, and now Anonymous.
Crap. The old christmas spirit is not exactly settling in well.
My bictheroonie only lasted about 48 hours after my Cooper volcanic moment. I hope the other folks come round.
C
Thanks Fair Economist. Do you happen to know, even roughly, what the overall population's addiction rates were in the examples you gave of entire countries that had fully legalized drugs?
What I am trying to understand is: If the criminality was low, was the unarguable damage to society (in lost human potential and productivity etc) very high, or medium, or low?
CR overload is not greater then CR addiction. Small break and then they come back. They always come back.
I've sworn off this blog several times.
Fair Economist writes:
"If you think the poorest own real estate anywhere in the US, never mind overpriced California, you lead a very sheltered existence."
I believe his comment was relative to others in California. Unless you are famaliar with Cali, it is huge and diverse, and the folks in the back country live a very different life than what you imagine based on coastal metro areas. Try visiting Hemmet, e.g. Ever been to Baker (not Bakersfield)?
If I only paid taxes for one thing. It would be for prisons.
Average Joe | Homepage | 12.19.08 - 9:23 pm | #
Maybe more of us would agree if Mr. Madoff was sent to Pelican Bay, rather than house arrest in his $7 million dollar apartment
I mention Meth and Crack because those are, in reality, the only drugs that are filling the prisons with criminals.
FairEconomist has a point...but Im sure he only learned how it "used to be" from reading a book. Go on a ride-along with a cop someday...you may be shocked at how others very close to you are living their day to day lives...and when you see the children and how they have to grow up, you'll want to throw their parents in jail just for being terrible parents.
AJ, I appreciate your distinction between drugs that are likely to make users dangerous to others, and those that are not.
I would support a redrawing of the line, in hopes that your theory of cheap,legal, 'good' drugs crowding out the worst ones would work better than what we have now. I'd love to see more dispassionate analysis of the options, with states allowed to experiment so we can all find the optimal place to draw that line...
Werner, you're starting to win me over.
Trust me, by the time they get to prison...the vast majority have been arrested many times and have committed themselves to a life of crime.
Average Joe | Homepage | 12.19.08 - 9:52 pm | #
AJ
you are so right...i saw it first hand
So, the system actually is "dynamic", and the real game is that the game always changes until human imagination is exhausted.
So, the only thing being constant is change.
Werner | 12.19.08 - 9:58 pm | #
Werner,
I don't actually think so. Automation/robotics is a game changer that outmodes human ability. I simply cannot see human ability keep pace with Moore's law. Your version of events will only happen if "artificial evolution" is constraint. I personally don't bet on it.
TG said
Being a saver I was very long the dollar most of my life. When the evidence of massive fraud in the system began evident to me I looked for alternatives. If gold takes a massive dive I deserve to lose and it will be painful....
tg is a born and bred dope in | 12.19.08 - 8:48 pm | #
tg, word
in the long run, i believe you are right...hang tight
The argument over the war on drugs boils down "how do you want to spend the money?". Enforcement and prisons or treatment and subsidizing.
I vote for the latter. Legalize, set up drug zones with free drugs, treatment, housing and let them either recover or die. I would bet my last dollar it would be cheaper and drug use would fall overall in society.
Take away the lure of something being illicit and you take away much of the lure for the teens. Add in the shame that will end up being associated by ending up in the drug zones and you will cut down the gateway into drug addiction. Crime is a symptom of drugs being illegal.
Yes, some meth addicts torture small children. Some non-meth addicts do too. But the vast majority of even meth addicts aren't violent. I have (unfortunately) met several meth addicts and none were violent or criminal, even when broke, begging, and psychotic. Even with meth most users remain functional productive citizens, and most of those who don't are not dangerous violent criminals. It's inaccurate, wasteful, and inhumane to treat all of them as like the small minority who are serious problems when addicted - just like treating non-meth users as child torturers because a small minority are.
Some drug addicts of all types commit crimes and they should go to jail - just like criminal non-addicts. But the occasional wino burglary is not a serious threat to society. The Prohibition era mafia or the current Mexican drug lords are a threat to society, and we get more petty crime with Prohibition anyway because of the raised cost of the drugs.
"Counterpointer(Unrated) writes:
\tSamdog - No Mozart. Too complex, and doesn't work on my tonal preference.
Anonymous - on Arendt? Are you baiting me?"
Try Czerny if you think Mozart screw with your tonal preferences. What a blast.
mmckinl wrote
Medicare for All ...
Currency and credit as a public utility ...
Electrification of transportation...
Tax reform with higher taxes on all income, treat all income as regular income and reciprocal trade agreements.
mmckinl at 8:29 pm
looks good to me...sign me up
RE, werner is, I think, right about the endless human capacity for invention and the endless nature of change.
I've been a student of history for over 30 years, and this is one lesson I have learned over and over again - that change is forever!
Even in my own lifetime, I grew up in a Europe split in two by an apparently permanent wall - gone. China was that hostile, ideological, and economically backward sleeping giant in Asia, and would always be thus -transformed.... There's lots more.
001 writes:
...and then hooked up with IBM to make his fortune.
NO! Definitely not. He did not hook up with IBM, he bought it from IBM who owned the code (and possibly that company who wrote that code). It is correct that IBM did not write any of that code, nor made it any modification. But dealing with the top of the Fortune 500, IBM did not see the potential for a "personal computer market. (The stuff was then just seen as an play-toy for amatures and nerds, not professional IT stuff, I know!)Nor did IBM see the potential for the internet, although it had powerful own telecommumication facilities for its mainframes. An IEEE journal whose detailed name I forgot (it was the general one w/o a specific topic) once provided an excellent treatment of that history.
Theodore Roosevelt
CITIZENSHIP IN A REPUBLIC
"The Man In The Arena"
Speech at the Sorbonne
Paris, France
April 23, 1910
The Man in the Arena - April 23, 1910 - Theodore Roosevelt Speeches- Roosevelt Almanac
What happened to the duty of being a citizen? Where did the qualities demonstrated in this speech go?
Average Joe and Fair Economist, you seem to have somewhat different views of the behaviors of the users of certain particularly nasty drugs, both based on real anecdotal or statistical sources.
But are you agreed that a rational way to manage drug use better would be to just objectively measure the rates of different types of bad behaviors for users of different types of drugs, and use a strict cost/benefit-type analysis to help us decide which drugs to fully legalize, and which ones to keep away from everyone?
Werner writes:
"NO! Definitely not. He did not hook up with IBM, he bought it from IBM who owned the code (and possibly that company who wrote that code)"
I suggest you have it backwards, Gates licensed it TO IBM for use in its first PC. In the singular biggest business mistake IBM ever made, they agreed to pay a per copy royalty instead of a fixed fee. That was the making of MS. When IBM tried to introduce their own OS years later to compete with MS/DOS, they found they couldn't wean the DOS users away.
Jacked - talk to CSC about that.
The way the games are playing out, I woulda thought some big pipelines on CR might help.
C
RE, werner is, I think, right about the endless human capacity for invention and the endless nature of change.
patientrenter | 12.19.08 - 10:59 pm | #
I am not disagreeing with his premise. The human race is quite adaptable. However, from my perspective it doesn't stand a chance to compete in the technology race, i.e. with Moore's law. Hence my point about the "commoditization of labor". You can observe that very easily today in manufacturing as dryfly points out time after time. The real number of jobs are not anymore in manufacturing but in white collar. Automation and robotics have caused a displacement further up the intelligence scale. It is now a race.
If a computer can beat a chess champion one on one whereas when I started in the biz that was considered a fantasy, realizable but very far in the future. Playing chess takes a high form of "intelligence". Most humans do not have that level of readily implementable intelligence. However, in the automation field that level of intelligence is a cheap commodity item worth a few dollar and replicated at ease.
If the guys running the snow plows on Hwy 80 have to take days off on days when there is a big dump. Get ready to go hungry Northern California.
We decided to take 80 back to the cabin after shopping and wow! Miles of trucks were lined up putting on chains to get over the pass. It is informative to watch the steady stream of trucks on 80 from the comfort of our living room.
The CHP was very busy last night with accidents due to blowing snow reducing visibility and stupid drivers over driving their headlights and also not being aware that around 4pm the road slush starts freezing again. Great idea make the CHP take days off.
I bet the workers are hoping that the days off are Friday and Monday.
Average Joe - Thank you for your service, and please pass this along to your fellow co-workers.
But are you agreed that a rational way to manage drug use better would be to just objectively measure the rates of different types of bad behaviors for users of different types of drugs, and use a strict cost/benefit-type analysis to help us decide which drugs to fully legalize, and which ones to keep away from everyone?
Of course. Realistically, I think the only one we'll get legalized in the near future is marijuana - which would be a big help; if that's all I can get I'll take it. The demonization of other recreational drugs is too extreme. For meth, there's even some truth to the demonization.
I suggest you have it backwards, Gates licensed it TO IBM for use in its first PC. In the singular biggest business mistake IBM ever made, they agreed to pay a per copy royalty instead of a fixed fee.
Comrade V | 12.19.08 - 11:08 pm | #
You are exactly correct though I think that the single biggest mistake was made by Gary Kildall from Digital Research (as pointed out above) when he snubbed IBM. CPM-86 was a much better and vastly more mature operating system than QDOS and reasonably well tested by then. I used it for quite a while.
Average Joe:
Opium is grown in Afghanistan and the Golden Triangle near Burma.
Cocaine is grown in S.America. In both average wage is maybe $2/day. Both grow very easily. Cost to produce almost nothing. Most addicts don't want to steal etc, they just want to get drugs to reduce their craving.
That they are forced to steal or whore and have such a degraded life is because of the power trip you and your fellow moralizers are on. Self appointed Guardians of right and wrong.Get your nose out of our butts. Our bodies are are own business, not yours.
Drug addiction is a physiological problem, not a moral weakness. At one time it may have been correct to limit exposure to drugs to protect those prone to addiction. But that time is long past.
If you are looking to protect the public get sodium out of our diets. Ban fructose-based sweeteners. Both are KNOWN disease causes. Metabolic Syndrome, Obesity and Diabetes are a huge public health problem.
And IIRC Gluttony is a mortal sin
But McDonalds and Cokes are the addictions of the Moral Guardians
zendiet, you may not be a long-time reader here, but if you were, you would recognize that Average Joe is no narrow-minded ideologue.
zendiet - I have no objection to you arguement in theory, but Average Joe is not to blame. He merely(?) upholds the laws of the land. Your arguement is more correctly directed at our legislators.
"btw, how do you guys pay that down?
Any serious plans ?
(serious, I said, not the typical CR-blog crap of e.g.: never, etc. )"
Inflation if they can pull it off, default otherwise.
There are no other options.
Serf Hope...
You said it all.
Average Joe: as much as we may disagree on the single issue of drug policy, I too echo thanks to you and your collegues for your valued service. And the troubling times notwithstanding, may you and yours enjoy the best of holidays.
Boss stamping feet impatiently for movie to begin.
Well, since I actually work for the University of California, I have a couple items to add to Arnold's list. First off, all UC professors with tenure and administrators should take a permanent 10% pay cut starting immediately. All merit increases should be frozen immediately for all UC employees with security of employment (tenure, contracts). All UC employees making more than 200k per year should have pay over 200k withheld to shore up the UC pension fund. BHO would agree, as 200k appears to be his magic number too. After all, those UC folks helped BHO get elected, so they should me more than happy to help. I personally know several professors who make over 200k per year, and it's actually quite common across UC. Many of these professors don't even grade their homeworks for God's sake. Perhaps these pay cuts will help the professors look more closely at the impact of California's liberal fiscal and social policies over the past decade. California is a virtual sanctuary state to 3-6 million illegal immigrants, who receive food stamps, daycare, medical care, babies delivered for free, subsidized housing, subsidized utility bills, and education. It's time for UC to pay for what it supports.
How will California survive? Fine employers of illegal immigrants $25k per hired illegal, per year. Go ahead and let them work, but be prepared to pay $25k per year to cover the cost of their entitlements, regardless of their pay. Deport all illegal aliens in jail or prison in California immediately. Require English competency of all foreign-born California citizens and alien residents (Arnold would agree). Give illegal immigrants $5k to deport themselves, and establish verifiable residence and employment in their home countries. Allow them to apply for citizenship legally in the normal manner that all other legal immigrants must follow. Ban all illegal aliens from purchasing homes or owning land in the State. Give illegals driver's licenses (never though I'd say this), and require yearly in-person check-ins with the DMV to verify continuous automobile insurance. Make illegal aliens permanently responsible for abandoned debts, without possibility of bankruptcy or debt forgiveness. Garnish their wages for all debts delinquent more than 6 months. Fine all illegal alien workers $2k for entering the State illegally.
That should fix it...
DK - you really know how to kill a thread -
Thank you. I actually lived in California for 9 years, and I still work for UC. I have a unique perspective, and people here should listen to it rather than try to silence it due to their own to uncomforts about the subject. Offer a rebuttal with facts. Spare me the prose.
Pissed off in Califonia - I'll do Glen Branca instead (!).
But rightabout now, I'm doing this... a liddle revolution:
YouTube - Spacemen 3 - Revolution
C