27 December, 2011

Feel Good Story of the Day

Feel good story of the day via Drudge:

Clerk punches out would be robber.  Makes him clean up his own blood.

A clerk at a business in Western North Carolina punched a would-be robber and knocked him out cold just minutes after the man barged in with a gun and demanded money.
...Mothershead said the man came behind the counter with a bag.
“I got the money and he had the bag out and instead of putting it in the bag I stuck it out and said, 'Just take it.' So, when he reached out, I took a step in, I cocked back and preloaded and I hit him hard,” Mothershead told News 4's Mike McCormick.
...While they waited for police and paramedics, Mothershead gave the man a roll of power towels, sprayed the floor with cleaner and told him to clean up his own blood.

It is well worth following the link to watch the video.  More than just knocking the guy out, he knocked him out with a left.

I have a man crush on the clerk.  If I had a sister, I'd see about setting them up on a date.

The bloodied crook got two things out of the experience: a free portrait and a lesson in natural consequences.

The Welfare-Warfare State

Continuing with yesterday's theme David Brooks chirps in on the problems we face and the institutions that need to be reformed.  Oligarchic corporations are one half of the problem but the other is comprised of the redistributionist-government worker complex: those who receive benefits of government spending and those who make their livelihoods as tools of that redistribution.  This is not to say that these institutions or the people who run them are evil (as the left-wing trope would characterize calls for reform) or that they should disappear (another oft-proffered straw man) but a call for sober assessment and reform
 The members of the Obama administration have many fine talents, but making adept historical analogies may not be among them.

When the administration came to office in the depths of the financial crisis, many of its leading figures concluded that the moment was analogous to the Great Depression. They read books about the New Deal and sought to learn from F.D.R.

But, in the 1930s, people genuinely looked to government to ease their fears and restore their confidence. Today, Americans are more likely to fear government than be reassured by it.

According to a Gallup survey, 64 percent of Americans polled said they believed that big government is the biggest threat to the country. Only 26 percent believed that big business is the biggest threat. As a result, the public has reacted to Obama’s activism with fear and anxiety. The Democrats lost 63 House seats in the 2010 elections.
Everything else is building up for the Iowa caucuses in a week and the news is slow in anticipation. 

If you're looking for something a little more intellectual let me recommend this classic essay from 1967 which identifies the problem not as the "welfare state" or the "warfare state" but the "welfare-warfare state" which rewards corporations and the self-appointed guardians of the poor at a cost to society as a whole.  It is as timely today as it was 44 years ago.
The Great Society is the lineal descendant and the intensification of those other pretentiously named policies of 20th-century America: the Square Deal, the New Freedom, the New Era, the New Deal, the Fair Deal, and the New Frontier. All of these assorted Deals constituted a basic and fundamental shift in American life — a shift from a relatively laissez-faire economy and minimal state to a society in which the state is unquestionably king.[1]
In the previous century, the government could safely have been ignored by almost everyone; now we have become a country in which the government is the great and unending source of power and privilege. Once a country in which each man could by and large make the decisions for his own life, we have become a land where the state holds and exercises life-and-death power over every person, group, and institution. The great Moloch government, once confined and cabined, has burst its feeble bonds to dominate us all.
I think I'll break the monotony with some creative destruction to fix a closet and the floors in one of the bedrooms: pictures to follow.












26 December, 2011

Don't Worry. We'll build it again.

Don't worry.  We'll build it again.
Robert Samuelson is quickly becoming a favorite commentator of mine.  His no non-sense analysis, as opposed to the oft partisan prescriptions offered by other professional critics, is refreshing and helpful to those of us more interested in crafting a society that works rather than winning a fight.  Today's exemplar is no different.
WASHINGTON -- There are moments when our political system, whose essential job is to mediate conflicts in broadly acceptable and desirable ways, is simply not up to the task. It fails. This may be one of those moments. What we learned in 2011 is that the frustrating and confusing budget debate may never reach a workable conclusion. It may continue indefinitely until it's abruptly ended by a severe economic or financial crisis that wrenches control from elected leaders.
We are shifting from "give away politics" to "take away politics." Since World War II, presidents and Congresses have been in the enviable position of distributing more benefits to more people without requiring ever-steeper taxes. Now, this governing formula no longer works, and politicians face the opposite: taking away -- reducing benefits or raising taxes significantly -- to prevent government deficits from destabilizing the economy. It is not clear that either Democrats or Republicans can navigate the change.
Authors Neil Howe and William Strauss in their book The Fourth Turning (published 1997) have laid out a perspective on this unwinding of a settled political order that they term "unraveling" which occurs every 70 to 90 years.  The last time one order unraveled and another was built was through the Great Depression ending in the current "give away politics."  The previous unraveling/building was the Civil War and Reconstruction period.  Four score and seven years before that was the order resulting from the American revolution and Constitutional Congress.  

The changes we face in the coming decades is as likely to be as great as any of those that went before.  Whether they are as bloody depends upon us.  If the vested interests (corporations and recipients of income "redistributions") act like the slaveholders of two crises past and dig in their heels, it may be.  If they yield, like the industrial barons before FDR, then the violence can remain electoral and largely metaphorical.

Regardless, time keeps slipping into the future and the time is short to finish preparing to play our parts as individuals and members of communities during the decades of transitions before us.  Nothing insures individuals from extremism like a place of refuge in the midst of a storm.  History itself is too much for one individual or family guide but we can determine our role and place within history.  Communities can also determine their place within the broader narrative.  If a consensus grows, so can nations.

In other post-Christmas news the Iowa caucuses and New Hampshire primaries will be upon us soon and a season of electoral news will be unrelenting.

A users guide to Iowa and New Hampshire offered by the New Republic:

The Republican field is crowded and fluid right now, but it won’t be for long. By January 11th, there will be at most three remaining contenders, and we’ll have a much clearer understanding of how the race will develop.
There are seven candidates with a pulse, and only six of them—divided into two groups of three—are competing in Iowa. For two of the three denizens of the lower tier—Michele Bachmann and Rick Santorum—failing to finish among the top three on January 3rd would spell the effective end of their candidacies. The third—Rick Perry—would probably have enough money left to stagger on to New Hampshire, but with the prospect of eventual success even further reduced from its current low level.
A Democrat, optimistically, foresees a repeat of Bush v. Gore:
The 2012 presidential race will be decided in a dozen swing states, and President Obama faces a hard road to victory in many of them.
“It appears this election will be much more like Bush-Gore” in 2000, said Democratic strategist Steve McMahon, co-founder of Alexandria-based Purple Strategies. “The president ain’t gonna win by 95 electoral votes.”
In a development that creates mixed feelings in me, Newt Gingrich also sees this election in terms of epochal change and conflict.  If only his character and temperament were not so unpredictable, I'd have my candidate for 2012.  Maybe he'll wind up Energy Secretary or chief speech writer in a Romney administration.
WASHINGTON -- At a moment when the nation wonders whether politicians can agree on anything, here is something that unites the Republican presidential candidates -- and all of them with President Obama: Everyone agrees that the 2012 election will be a turning point involving one of the most momentous choices in American history.
True, candidates (and columnists) regularly cast the impending election as the most important ever. Campaigning last week in Pella, Iowa, Republican Rick Santorum acknowledged as much. But he insisted that this time, the choice really was that fundamental. "The debate," he said, "is about who we are."
 Speaking not far away in Mount Pleasant, Newt Gingrich went even further, and was more specific. "This is the most important election since 1860," he said, "because there's such a dramatic difference between the best food-stamp president in history and the best paycheck candidate." Thus did Gingrich combine historic sweep with a cheap and inaccurate attack. Nonetheless, it says a great deal that Gingrich chose to reach all the way back to the election that helped spark the Civil War.
New political orders can, I suppose, look a lot like those of the past.  Whatever else we might think of Ron Paul, he is the one Republican candidate which seems to garner support from both extremes of the current divide.  What remains is a catalyst to make him palatable to the vast middle.  Personally, I like his views.  I'm still, however, trying to overcome my fear of change before I could embrace a newly isolationist America.
In this year's GOP presidential track meet it seems that everyone gets a turn in front -- and this week Ron Paul is the lucky candidate. While still trailing in the national race numbers, recent poll results from Iowa suggest that, two weeks until caucus day, Paul has jumped into the lead there ahead of the water-treading Mitt Romney and the sinking Newt Gingrich.
Paul brings a unusual set of views to the Republican presidential sweepstakes -- on almost every core national security and foreign-policy issue he holds a position that is in fierce opposition to the views of mainstream Republicans.
Indeed, his entire philosophy is largely a renunciation of much of what Republicans believe about America's role in the world. He questions the popular notion of American exceptionalism and has argued in his recently published book, Liberty Defended, that the "United States is an empire by any definition, and quite possibly the most aggressive, extended, and expansionist in the history of the world." This is the kind of language that might cause Ronald Reagan to roll over in his grave.
Jon Huntsman is frequently observed as getting every issue right but can not seem to get his moment in the media spotlight.  I guess this just goes to show that life never deviates too far from Jr. High.  The bad boys get the girls and the class clowns get the attention.  The rich kids get encouraged to advanced placement and the quiet "good" kids gets to sit in the back, reading an encyclopedia for fun.  Whoops, am I projecting again?
Three years after the near implosion of the economy, the nation’s largest banks continue to exist as financial skyscrapers on the landscape, their collapse threatening to rain destruction on all the lesser players. The memory of that frightening September, when then-President George W. Bush was told by advisers that immediate government intervention was necessary, may be fading already. Yet the threat of the bankruptcy or near-bankruptcy of a handful of banks and insurance companies continues as the nation’s economy slowly recovers.
Among the abiding disagreements in my marriage is the role of the full moon in the number and severity of hospital admissions.  If your year did not involve enough math or you want another demonstration of a yes/no questions answered with a statistical "it depends," perhaps this series of blog posts from the Guardian is for you.
I was a particularly cowardly child. I'm not such a brave adult either, but the subjects of my cowardice have changed somewhat. As an adult I'm more scared of losing my job in a recession or having my identity stolen on the internet. As a child, I was terrified of werewolves. Every full moon I would worry about being on the wrong end of gnashing, razor-sharp teeth.
Of course I shouldn't have been any more worried when there was a full moon than on any other night. Or should I? A classic article in the British Medical Journal sought to answer a similar question: are crime rates higher when there's a full moon?
Science is all about formulating and testing hypotheses. In this case the hypothesis would be: "Crime rates are higher when there's a full moon." Often, scientists set out to test the "null hypothesis": the default statement that, if true, would indicate that their experiment had not detected any real effect. In the case in question, the null hypothesis could be expressed as: "There is no difference in crime rates when there is a full moon compared with other nights."
The problem with data like crime rates is that it contains random noise – patterns can appear and disappear by chance alone. So we first need to ask ourselves how sure we want to be that there is a real difference between crime rates on a full moon and those on any other night. Quite sure? Fairly sure? Almost certain?



23 December, 2011

2012: The world will not end but it may seem like it.

There must be no greater form of self-effacing humor than the making of predictions.  Nothing, except perhaps the reviewing of the last years resolutions, causes more humility than looking back at what one thought would happen the prior year.  This is why I generally stick to my oft heard refrain, "I don't know and neither do you" but what fun is that?

So, looking forward to the humiliation to come, my predictions for 2012: The world will not end but it may seem like it.

1.  The Chinese property bubble finally pops spreading financial carnage far and wide.  Banks through out Asia will feel the pain first and, as the second and third order effects become apparent, the rest of the world.  As China unwinds I would expect the price of all commodities to fall through the floor.  Gold, Silver, oil, rare earths, metals and anything else you can think of should become cheaper, renewing talk of deflation.

On-going unemployment (at 9% by year end 2012) in the United States MAY result in your own paycheck decreasing.  If wage deflation does begin, we will have to give renewed attention to those who are worried about an extended period of economy wide deflation.  By December 2012, however, I think we'll be back to worrying about inflation in the United States.

2.  Decreased demand in Asian and Europe plus a soft winter in the United States will cause oil prices to fall significantly.  I will be able to buy diesel for 2.00 a gallon over the course of the year.  For the year the oil high price will be 109.83, low will be 42.15 and on Dec 31, 2012 the price will be on its way back up (the decline of cheap oil will still dominate the price trend) at 84.16.

3.  Mitt Romney will be the safe "John Kerry Candidate " of the GOP.  He will choose a governor from the mid-west (Tim Pawlenty, Mitch Daniel or Scott Walker) as his running mate.  Who wins in a Romney v Obama race is up in the air.  It comes down to one question, Is David Axelrod as effective as Karl Rove?  I suspect not and so I think we will be complaining about a President Romney soon enough but even I'm not foolish enough to predict it.

4.  OWS will continue but with less effect.  The movement born of a self-important impulse to do what ever it takes to "be heard" (i.e. make the news) will continue to escalate as moderating influences drift (or run) away and the righteous core screams for attention and affirmation.  Americans as a whole want to know what a movement is for, not only what it is against and the vague answers and growing militancy of OWS will strike Americans cold.


5.  The Euro will cease to continue as we know it.  There are three or four ways this whole thing could go down and I have no insight as to which way the cookie will crumble.  I am willing to predict, however, that crumbling ceases being a threat in 2012 and becomes a reality.

The Major Wildcard which could throw all these predictions into dis-array?  The Persian Gulf.  A war in the Persian Gulf would hasten the collapse of the Chinese giant but would remove all the benefits of creative destruction that would otherwise be made available to the world economy.  Oil prices would be high and fluctuating and oil is used in the manufacture and transportation of everything.  A President Obama could ride a wave of patriotism to a second-term (if the gods of war favor him).  OWS could find a new lease on life in a war to be against.  Who knows, the bond markets might even be distracted for a time granting Europe a few month reprieve.

What ever the Macro-events of 2012 may be, let us work to make our microcosms places of joy and friendship.  Make your own bailout by paying off debts and you will find yourself less concerned about inflation, deflation or the price of the drive to work.  Organize a home pantry so you can buy in bulk when items are on sale and have a cushion for whatever life throws at you.  Begin raising some portion of your own food and feel the empowerment which flows from doing.

19 December, 2011

Daily News

I will not pretend to have been a large fan of the positions Christopher Hitchens but only because I found him too much the fundamentalist in his anti-religious tirades.  He remained always, however, a joy to read and as a writer he will be noted as one of the best of a generation.  One could not help but audibly whoop at the way he would make a point, assuming of course that he was on your side of the argument.  It is a loss to say goodbye to this English man of letters.
The death of Christopher Hitchens deprives us of a writer of verve and charm, a controversialist, and an intellectual. He was a journalist, above all – he filed many dispatches from war zones – and the long essay was the form in which he was most comfortable. His skill in this neglected discipline places him in the English tradition of men of letters.
Mr Hitchens did not produce many full‑length books, but he did turn out scores of graceful and erudite essays. This work will be seen as his distinctive contribution to the literature of our time; the belligerent, proselytising atheism that made him a celebrity is a distraction.
As a polemicist, he certainly could be intemperate. Often, he was rude to the point of absurdity, referring to Diana, Princess of Wales, after her death, as a “simpering Bambi narcissist”. But he spoke his mind, and in a world of anodyne public figures this was refreshing. Nor was all his work vituperative: he wrote with sensitivity about favourite writers such as Evelyn Waugh, Anthony Powell and P G Wodehouse.
The despot Kim Jong Il is dead.  Long live the despot Kim Jong Un.  The death of the despot is only lamentable because he died in bed and of old age instead of a lamppost.  The succession to the son does insert a degree of instability into a regime that was already known for its provocations.  It is doubtful that the younger Jong enjoys universal support so future provocations are likely as either his opponents seek to undermine his leadership or as he attempts to consolidate it with new accomplishments.  As the Diplomat observes:
Kim Jong-un has apparently begun to put his own people in place, but it’s hard to imagine that such a process is complete or irreversible. There are many fissures within North Korean society, and relatively few individuals who can bridge those gaps to project power across the system. This works in the favor of the Kim family, which remains at the center of power.  
What we don't know is whether there might be cleavages within the family or other disconnects between the family and the bureaucracy that might emerge as points of conflict as the process unfolds.

Image from Salon.com
NY Times columnist and former Enron adviser Paul Krugman is joining the chorus of concern over what sounds like the eerie ripping of a property bubble in China.  Paul is not the first to mention a concern and we can agree with him that Chinese statistics are even a greater exercise in fiction than most economic statistics give one pause to assert a trend.  Moreover this is not Dr. Krugman's first note of concern about the situation in China.  If the future bears out the concern, however, there will be an increased criticism on the impact of stimulus on an economy and the Chan narrative will be used to support Austrian School against the Keynesian vision shared by Dr. Krugman.  The argument can wait, however, until after we know what the future holds and how it will impact the larger world economy.
And anecdotal evidence suggests that while China’s government may not be constrained by rule of law, it is constrained by pervasive corruption, which means that what actually happens at the local level may bear little resemblance to what is ordered in Beijing.
I hope that I’m being needlessly alarmist here. But it’s impossible not to be worried: China’s story just sounds too much like the crack-ups we’ve already seen elsewhere. And a world economy already suffering from the mess in Europe really, really doesn’t need a new epicenter of crisis.

I confess to a degree of sympathy for the Austrian economic argument but most of this is merely a reaction to the limits of Keynsianism.  It is not that one school is always right and the other wrong but economics is situational.  Economics shares this with parenting: sometimes there is a need to intervene and sometimes there is a need to stay out of the way.  The situation is complex and living in a different society with different challenges than the 1930's the connection between the value of Keynes to that original context becomes more clear.  Robert Samuelson makes this very point very well and reminds us that Lord Keynes (unintentionally) foretold it:
"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist."
-- John Maynard Keynes, 1936
WASHINGTON -- The eclipse of Keynesian economics proceeds. When Keynes wrote "The General Theory of Employment, Interest and Money" in the mid-1930s, governments in most wealthy nations were relatively small and their debts modest. Deficit spending and pump priming were plausible responses to economic slumps. Now, huge governments are often saddled with massive debts. Standard Keynesian remedies for downturns -- spend more and tax less -- presume the willingness of bond markets to finance the resulting deficits at reasonable interest rates. If markets refuse, Keynesian policies won't work.
Speaking of the 1930's and 40's Bloomberg publishes an opinion piece outlining how World War II did not end the Depression just by adding demand to the economy but by transforming the economy and adding entire an entire sector (aerospace) to the nation.  Of course it didn't hurt that once the war was over those our factories were the last left untouched for the rebuilding of Europe and parts of Asia.

17 December, 2011

I'm Pretty

Overheard:
P1: I hate him so much!  I want to smash my head into that wall!
P2: Oh, don't say that...
P1:  You're right.  I'm pretty.  I want to bash his head into that wall.
Me?  Oh, I just love the holidays.

Saturday, 17 December 2011

Gary Hart: GOP volatility caused by voters not knowing what they want

Most national candidates, and too many political commentators, miss the mini-primaries that lead up to the real events. In coalition parties, which theDemocrats have been since F.D.R. and the Republicans have been since Nixon, campaigns are formed by creating personal coalitions around the various candidates. And for grassroots campaigns, of the sort I constructed for myself in 1983-84, it is even more basic than that. It is about finding key people in key primary states who combine a high reputation, organizational skill and a network of political contacts to form a campaign nucleus around which the rest of the state can be organized. I was once asked how many people I needed to win New Hampshire and I said, “Six.”

The Rest of Illinois Tired of being governed from Chicago
'Why would anyone want to live in Illinois?" So muses Curt Wooters, who works for the state and helps his dad run the family's sporting-goods store in Findlay, 200 miles south of Chicago. Imagine California without the sunshine, New York without the cultural elan, New Jersey without Chris Christie. That's Illinois.

Evel Knievel would be proud
A newfound comet defied long odds today (Dec. 15), surviving a suicidal dive through the sun's hellishly hot atmosphere, according to NASA scientists.
The should compare the grades of students who write when their drunk.
Writer, philosopher, gadfly, and Slate contributor Chrisopher Hitchens died on Thursday of complications from esophageal cancer. While drinking and smoking may have contributed to his untimely passing, Hitchens didn’t regret either habit: “Writing is what’s important to me, and anything that helps me do that—or enhances and prolongs and deepens and sometimes intensifies argument and conversation—is worth it to me.” After Steve Jobs died, we explained how LSD may enhance creativity among innately creative people. Does alcohol improve your writing?